Wednesday, Jan. 07, 2009

The Buzz on Business

DOLLAR VALUE MIXED, GOLD PRICES RISE

Gold prices rose slightly Tuesday as the dollar weakened against some other currencies. The dollar fell versus the British pound and Japanese yen, but strengthened against the euro on expectations that the European Central Bank will cut interest rates when it meets next week, which could weaken the 16-nation currency. Gold for February delivery rose $8.20, to settle at $866 an ounce on the New York Mercantile Exchange. Other precious metals prices also rose. March silver gained 17.5 cents, to $11.4450 an ounce, and March copper futures rose 12.4 cents, to $1.5830 a pound.

ENRON'S SKILLING TO BE RESENTENCED

A federal appeals court Tuesday upheld former Enron Corp. CEO Jeff Skilling's convictions for his role in the energy giant's collapse but threw out his 24-year prison term and ordered that he be resentenced. A three-judge panel of the 5th U.S. Circuit Court of Appeals in New Orleans denied Skilling's request to overturn his convictions. Skilling argued that his convictions were invalid because of what his lawyers argued were incorrect legal theory, faulty jury instructions, a biased jury and prosecutorial misconduct, including accusations of witness intimidation and withholding evidence. The panel wrote in its opinion that Skilling "failed to demonstrate that the government's case rested on an incorrect theory of law or that any reversible errors infected his trial." But the appellate panel also found that U.S. District Judge Sim Lake improperly applied a sentencing guideline that resulted in a longer prison term for Skilling, and ordered that he be resentenced. Skilling was convicted in May 2006 on 19 counts of fraud, conspiracy, insider trading and lying to auditors for his role in the collapse of Houston-based Enron, once the nation's seventh-largest company.

SKITTISH CAR BUYERS PLEASE APPLY

Can't make the payments on that new car you just bought? No problem — just return it free of charge. At least that's the deal being offered by Hyundai Motor America. In a bid to woo skittish consumers, the South Korea-based automaker will cover the depreciation on any returned leased or financed vehicle for the first 12 months to those who find themselves unable to make their car payments. Deadbeats can't cash in, however. The "Hyundai Assurance Program" applies only to customers stricken by misfortune outside their control, such as losing their job, becoming disabled or losing their driver's license for medical reasons. Customers must have made at least two payments on the car. In addition, Hyundai will refund the depreciation on the returned car only up to $7,500. After the first 12 months, customers have the option of extending the program for a fee through their dealership. Customers who pay cash for their car don't qualify for the program, Hyundai said. Hyundai said the program is aimed at consumers too nervous to spring for a new car in the difficult economy. The slump in consumer confidence has been one of the biggest factors behind the collapse in new vehicle sales in 2008. For this reason, traditional incentive tactics, such as low-interest financing or cash bonuses, have been much less effective in boosting sales recently.