Economic worries mar tech show's glitz

(Reuters) - The world's major technology companies are trying to convince consumers they need an expensive, digitally connected home with the latest high-tech gadgets.

But there's a problem: an increasing number of consumers are having trouble just paying for the roof over the heads, much less a 150-inch television.

Few company executives at the annual Consumer Electronics Show in Las Vegas this week can avoid questions about the state of the economy, and the combination of a surge in the U.S. jobless rate, oil around $100 and a worsening credit and housing crisis has many on edge.

"The fourth quarter is full of strange, unanswerable situations related to unemployment, related to GDP, related to everything else," Sony Corp (6758.T: Quote, Profile, Research) Chief Executive Howard Stringer said on Monday after a briefing at the show. "So it's too soon for us to be pessimistic, but I read the papers."

 

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Yahoo CEO stakes out mobile phone market strategy

(Reuters) - Yahoo Inc's Jerry Yang will seek on Monday to demonstrate in his first major speech since taking over as chief executive in June the inroads the company is making putting Web services on mobile phones.

In a speech at the Consumer Electronics Show, an industry agenda-setting conference taking place in Las Vegas this week, the Yahoo co-founder will highlight a series of enhancements the company is making to its Internet services to optimize them to run on hundreds of millions of existing mobile phones.

Marco Boerries, the executive in charge of Yahoo's division supplying Web services for phones, TVs and other devices beyond PCs, told Reuters in an interview ahead of Yang's speech that Yahoo wants to play a big role in these new markets while staying true to its roots as an Internet services pioneer.

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Sallie Mae Names Terracciano Chairman; Lord Still CEO

(Bloomberg) -- SLM Corp., the biggest U.S. educational lender, named Anthony P. Terracciano chairman, succeeding Albert L. Lord.

Lord will be vice chairman of the board and remains chief executive officer, Reston, Virginia-based SLM, known as Sallie Mae, said today in a Business Wire statement. John F. Remondi was named vice chairman and chief financial officer.

Lord, 62, served as Sallie Mae's CEO from 1997 to 2005 and resumed the post on Dec. 14, after the collapse of a proposed $25.3 billion takeover by investors including J.C. Flowers & Co.

Sallie Mae has slumped 40 percent in New York Stock Exchange trading since Dec. 13, as Lord has completed a sale of $2.9 billion in shares to pay for stock buybacks and to help improve the company's credit rating.

 

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U.S. Stocks Rise for First Time in 2008; JPMorgan, Celgene Gain

(Bloomberg) -- U.S. stocks advanced for the first time this year on speculation the Federal Reserve will cut interest rates to prevent the world's largest economy from sinking into recession.

Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., the biggest U.S. banks, climbed. Celgene Corp., a maker of cancer treatments, rose after saying profit will jump 45 percent in 2008. Microsoft Corp. gained after Chairman Bill Gates said the world's biggest software maker shipped 100 million copies of its Windows Vista operating system.

The Standard & Poor's 500 Index advanced 5.35, or 0.4 percent, to 1,416.98 as of 9:36 a.m. in New York. The Dow Jones Industrial Average increased 45.11, or 0.4 percent, to 12,845.29. The Nasdaq Composite Index rose 5.01, or 0.2 percent, to 2,509.66.

 

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Ford Plans to Introduce More Fuel-Efficient Engine in 2009

(Bloomberg) -- Ford Motor Co., the second-largest U.S.-based automaker, plans to introduce a new, more fuel- efficient engine as the company tries to halt a sales slide in its home market.

Ford says the EcoBoost engine can improve mileage by as much as 20 percent. The new engine uses turbocharging, which forces air through it. The company says the EcoBoost engine can be smaller and lighter without sacrificing power.

``Customers do want better fuel economy,'' Derrick Kuzak, Ford's product-development chief, told reporters during a Dec. 11 briefing at a company facility in Dearborn, Michigan. ``We need to do it to gain share and volume.''

Ford, which is also based in Dearborn, was passed by Toyota Motor Corp. in 2007 for the No. 2 spot in U.S. sales. Ford had held the position since 1931 and hasn't been third or smaller in U.S. sales since 1905. The company has had 12 consecutive years of declining U.S. market share.

 

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US STOCKS-Market sinks as jobs data stirs recession fears

(Reuters) - U.S. stocks tumbled on Friday, dragging the Dow to its worst three-day start to a year since the Great Depression, as a sharp rise in the unemployment rate heightened fears the economy is heading into a recession.

Technology shares were the worst performer in a broad-based decline after chip maker Intel Corp skidded 8.1 percent on concerns that businesses are unlikely to upgrade computer equipment in the face of a slowdown.

The Nasdaq fell 3.77 percent, bringing the index to its worst three-day kick-off to a new year since it was created in 1971.

The U.S. Labor Department reported job creation nearly ground to a halt in December and unemployment rose to a two-year high of 5 percent.

"The payroll numbers are showing that we don't have the jobs, and if you don't have job income you don't have consumers doing any spending," said Gary Shilling, president of A. Gary Shilling & Co. of Springfield, New Jersey. "I don't think there's much question we're in a recession now."

 

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U.S. Stocks Fall After Job Growth Misses Forecast; Apple Drops

(Bloomberg) -- The U.S. stock market got off to its worst start since 2000 after government reports on jobs and manufacturing added to concern the economy will sink into recession.

Apple Inc., maker of the iPod music player, fell the most since April 2005 and was the biggest drag on the Standard & Poor's 500 Index. Apple declined after Intel Corp., the largest chipmaker, was downgraded by JPMorgan Chase & Co. Alcoa Inc., Home Depot Inc. and Hewlett-Packard Co. led the Dow Jones Industrial Average to its third retreat in four days.

 

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