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Obama Defends Budget, Says Spending Will Pay Off
President Barack Obama used a prime-time news conference to defend his $3.6 trillion budget plan, digging in on his ambitious spending and tax proposals one day before the plan begins to move in Congress. Ahead of next week’s global economic summit, Mr. Obama also took a subtle swipe at European leaders who have questioned his administration’s calls for their countries to offer up more economic stimulus.
U.S. Durable Goods Orders Unexpectedly Jumped 3.4%
Orders for U.S. durable goods unexpectedly rose in February on a rebound in demand for machinery, computers and defense equipment. The 3.4 percent increase, the first gain in seven months, followed a 7.3 percent decrease in January that was larger than previously estimated, the Commerce Department said today in Washington.
Drive to Tax AIG Bonuses Slows
Congress’s drive to recoup bonuses at American International Group Inc. (NYSE:AIG) is slowing significantly as passions on the issue cool, potentially removing a wedge that has threatened to derail the Obama administration’s broader agenda. The bonuses sparked an outpouring last week in the House, which voted overwhelmingly to impose a 90% tax on many bonuses, not just at AIG but at all institutions receiving significant financial-bailout support.
GE Wins Natural-Gas Contract in China
General Electric Co. (NYSE:GE) said it has won a $300 million contract to supply compression equipment for the second phase of a natural-gas pipeline across China. GE Oil & Gas executives say the West-to-East pipeline is one of the largest ongoing gas pipelines in the world and, when completed in the next six years, will stretch roughly 20,000 kilometers through 13 provinces and bring $600 million in revenue to GE.
Google steadied exec pay, trimmed bonuses
Google Inc. (NASDAQ:GOOG) held base salaries for its top executives steady in 2008 and slightly trimmed their bonuses as the souring economy spread caution in Silicon Valley, according to an annual regulatory filing. Google disclosed in its annual proxy statement for 2008 that it opted to keep salaries for executives other than its CEO and co-founders steady at $450,000, following an increase in 2007 from $250,000.
Pay Falls 37% for Ford’s Mulally
Ford Motor Co. (NYSE:F) cut total compensation for its top three executives in 2008 by more than one-third as the auto maker continues to weather poor sales and billions in losses. The company is the only member of the Detroit Three to go without a government bailout. Its cross-town rivals, General Motors Corp. and Chrysler LLC, were awarded $17.4 billion to keep them out of bankruptcy while the Obama administration evaluates the companies’ long-term viability.
A Dell Smartphone Would Face Big Hurdles
Instead of rushing to compete with the entrenched iPhone and BlackBerry, Dell (NASDAQ:DELL) should consider making larger mobile Internet devices, or buying Palm. Dell CEO Michael Dell has done little to dispel rumors that his company is working on a mobile computing device. In fact, he all but confirmed them while traveling in Japan on Mar. 24 when he said: “It is true that we are exploring smaller-screen devices.”
Blockbuster to sell, rent movies through TiVo
Blockbuster Inc. (NYSE:BBI) plans to rent and sell its movies and TV shows through TiVo Inc.’s (NASDAQ:TIVO) digital video recorders in the second half of this year. The Dallas-based video rental company is playing catch-up to rival Netflix Inc. (NASDAQ:NFLX), which already offers free instant streaming of its movies and TV shows through TiVo DVRs and other devices with its “Watch Instantly” service.
Porsche Obtains EU10 Billion Loan After Rounding Up New Lenders
Porsche SE (FRA:PAH3), maker of the 911 sports car, turned to new banks to help refinance a 10 billion- euro ($13.5 billion) loan needed to buy Volkswagen AG (FRA:VOW) stock. Former lenders Merrill Lynch and ABN Amro didn’t take part. The credit crunch and recession meant banks took longer to sign up for the facility, which replaces one coming due this month, Porsche said today.
