2nd UPDATE: Microsoft CEO: Economy Not Through All Issues

By Jon Kamp Of DOW JONES NEWSWIRES BOSTON (Dow Jones)--Microsoft Corp. (MSFT) Chief Executive Steve Ballmer said Friday that a permanently changed economy will be slow to recover from the recession, but he also cited signs of improvement and issued an upbeat outlook for long-term information-technology opportunities. "What we see today feels like a new normal," Ballmer said about the economy in an address during a luncheon held by the Boston College Chief Executives' Club of Boston. "I don't think we're through all the issues." Ballmer also addressed the rationale behind Microsoft's expansion into retail stores, which is expected to start...

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San Joaquin Bank shut down by regulators

Calif. bank becomes 99th in US to be shut in 2009By STEPHEN BERNARD (AP) – 59 minutes agoNEW YORK — Regulators have shut down San Joaquin Bank in California, marking the 99th failure this year of a federally insured bank.The Federal Deposit Insurance Corp. was appointed receiver of San Joaquin Bank, based in Bakersfield, Calif. It had $775 million in assets and $631 million in deposits as of Sept. 29.The FDIC said Friday the bank's deposits will be assumed by Citizens Business Bank, based in Ontario, Calif. Its five branches will reopen Monday as branches of Citizens Business Bank.San Joaquin Bank's failure is expected to cost the FDIC's insurance...

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CIT amends restructuring plan with bondholders

CHICAGO (Reuters) - Commercial finance company CIT Group Inc and a group representing its bondholders have agreed on changes to the company's proposed restructuring plan as it looks shore up its finances.The changes, announced by CIT late Friday, include a mechanism to accelerate the repayment of new notes; the shortening of maturities by six months for all new notes and junior credit facilities; and offering more equity to subordinated debt holders.The changes would include notes maturing after 2018 in the company's exchange offer and increase the interest paid on Series B notes being offered by CIT Delaware Funding to 9 percent from 7 percent....

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Israel rejects UN council backing for Gaza war crimes report

UN human rights council passes resolution endorsing Goldstone report, which accused Israel and Hamas of war crimesIsrael has angrily rejected what it called a "one-sided" resolution by the UN human rights council today that backed a highly critical report on the Gaza war and opened the way to possible international war crimes investigations.The council voted to endorse the report by a South African judge, Richard Goldstone, which accused both Israel and Hamas of committing war crimes and possible crimes against humanity during the three-week war in Gaza in January. Goldstone, whose work was hailed by leading international human rights groups,...

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BofA Agrees to Give More Details on Merrill

WASHINGTON/NEW YORK (Reuters) - Bank of America Corp agreed to give federal authorities more information about why it refrained from disclosing details about Merrill Lynch's performance before it bought the investment bank, U.S. regulators said on Tuesday.The pact, still subject to court approval, would allow the U.S. Securities and Exchange Commission to look at details on the bank's failure to disclose information to shareholders about Merrill's $15.8 billion fourth-quarter losses and about bonuses paid to the investment bank's employees.Bank of America's board voted on Friday to waive its attorney-client privilege that protects the names...

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Barack Obama's health care plan could get support from second Republican senator

President Barack Obama's plans to overhaul the American health care system received a boost on Wednesday when a second Republican senator indicated that she may support the legislation.Susan Collins joined fellow moderate Republican senator Olympia Snowe, in endorsing the goal of far-reaching changes in the US health care system.The proposals to overhaul of the $2.6 trillion (£1.6 trillion) system were passed by the Senate Finance Committee, setting the stage for a major battle on the Senate floor itself. My hope is that we can fix the flaws in the bill and come together with a truly bipartisan bill that could garner widespread support," Mrs...

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Pakistan launches all-out assault on Taliban

Pakistani troops maintain a curfew in Bannu on the edge of Waziristan as the army begins a major assault against the Taliban. Photograph: Ijaz Muhammad/APMore than 30,000 Pakistani soldiers have launched a much-awaited ground offensive in an al-Qaida and Taliban stronghold along the Afghan border.The offensive in South Waziristan follows months of air strikes intended to soften up militant defences. The bombing has forced tens of thousands of civilians to flee.Pakistan's full-scale operation comes after two weeks of militant attacks that have killed more than 175 people, increasing the pressure on the army to take on the insurgents.Aside from...

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Forex Top Story Euro Hits 14-Month High Versus Dollar

(RTTNews) - The euro maintained its recent gains versus the dollar and yen as global stocks saw further strength, adding to risk appeal. With the rally, the euro moved to its best level in more than a year versus the dollar.The Eurostat said in a report today that the Eurozone industrial production decreased 15.4% year-on-year in August, compared to the 15.9% fall in the previous month Economists expected a decrease of 15.5%.On a monthly basis, industrial production climbed 0.9% in August, faster than the 0.2% growth in July, revised from 0.3% decline reported initially. Economists were looking for an increase of 1.2%.The euro leveled off against...

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US retail sales dragged down by auto sales

WASHINGTON — US retail sales saw their biggest decline of the year in September as auto sales were dented by the end of government trade-in incentives, official data showed Wednesday.Sales fell 1.5 percent following a revised 2.2 percent jump in August. The figure was not as weak as a 2.1 percent drop expected by most analysts.The September contraction, the biggest since December 2008, was attributed to tumbling auto sales after the government ended a rebate program in which car owners swapped old vehicles for new, more fuel-efficient models.Auto sales fell dramatically by 10.4 percent, reflecting the end in August of the "cash-for-clunkers"...

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Sept. retail sales fall 1.5 percent post Clunkers

By MARTIN CRUTSINGER (AP) – 2 hours agoWASHINGTON — Retail sales declined in September by the largest amount this year as car sales plummeted following the end of the government's popular Cash for Clunkers program. But outside of autos, sales were better than expected.The Commerce Department said Wednesday that retail sales dropped 1.5 percent last month. That's smaller than the 2.1 percent fall economists had expected, but still the biggest setback since sales dropped 3.2 percent in December.Car sales plunged 10.4 percent, but excluding autos, retail sales rose 0.5 percent. That's better than the 0.2 percent increase analysts expected.Consumer...

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Dollar wise

The hand-wringing over the US dollar's fall has been overdone. The greenback is expected to remain weak, but few think declines will accelerate in spite of debates over the dollar's role in the world economy.Last week the dollar fell to a 14-month low against a basket of six major currencies in part because of concerns about the slow recovery in the US economy.But the decline in the currency has been orderly and other measures of risk, such as the rally in stocks and low interest rates, suggest a healthy outlook toward US assets and economic growth.The worries heightened earlier last week when several Asian central banks intervened in the markets to buy dollars to weaken their currencies. Markets were calmed only later after US Federal Reserve chairman Ben Bernanke made comments that supported...

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