Economy & Business
*FCC chief ready to regulate cell phone cancellation fees -- The head of the Federal Communications Commission says he is open to the idea of government regulating fees charged to cell phone users who cancel their wireless contracts early. FCC chief Kevin Martin would not say Friday whether he endorses an industry plan to help consumers avoid ``early termination fees'' as proposed earlier this week and described in detail by The Associated Press. But Martin said he supports creation of what he described as a ``national framework'' to regulate such fees. AP 5/23/08
*Home sales post unexpected increase in April but remain near lowest level in 17 years -- The Commerce Department reported Tuesday that sales of new homes rose 3.3 percent in April to a seasonally adjusted annual rate of 526,000 units. But the government revised March activity lower to show an even bigger drop of 11 percent to an annual rate of 509,000, which was the weakest pace for sales since April 1991. Economists believe that new home sales will remain weak for some time as the housing industry struggles with falling prices and rising mortgage foreclosures, which are dumping even more homes on an already glutted market. AP 5/27/08
State bolsters firefighting efforts -- Californis is hiring an extra 1,100 seasonal firefighters, commandeering a super-size tanker that can release 12,000 gallons of fire retardant in a single drop, and imploring homeowners to do their part. To pay for the beefed-up firefighting, the governor has proposed a surcharge on homeowner insurance policies - 1.4 percent for homes in disaster-prone zones, 0.75 percent for homes elsewhere - that he says would generate more than $100 million annually. SJ Mercury 5/24/08
HOME BUYERS PREFER TO ADD AN EXTRA ROOM -- The cathedral-ceilinged "great room" - a defining feature of big suburban houses for the past 15 years - is losing favor. Owners say these double-height rooms are expensive to heat and cool. Major home builders including say more buyers are looking for the maximum number of rooms and square footage for their money, so they're opting to have a loft, bedroom or playroom built in the air space where the plans call for a double-height ceiling. SJ Mercury 5/27/08
Property rights initiatives triggers rent-control clash -- Many residents of California cities that control rent fear a property-rights initiative on the June 3 statewide ballot — and half those cities are in the Bay Area. Whether renting apartments in downtown Oakland or San Francisco, or mobile homes in Concord or Daly City, thousands of residents embrace caps on their rents in one of the most expensive regions in the nation, say opponents of Proposition 98. CC Times 5/24/08
*Rate increases sought for homeowners insurance -- After dropping in recent years, the cost of insuring your home may be about to climb. California's three biggest insurers, covering more than half of insured homes, have requests for rate hikes pending with Insurance Commissioner Steve Poizner. How Poizner handles the proposed increases could affect his political future. As the only Republican statewide officeholder, he is being touted as his party's best candidate for governor in 2010. LA Times 5/27/08
Home Sales Rise in Hard-Hit Areas -- Home sales are rising in some U.S. metropolitan areas where lenders have slashed prices on foreclosed properties. Generally, home sales remain weak. The National Association of Realtors reported last week that sales of previously occupied homes in April were down about 18% from the already depressed year-earlier level. But sales are up sharply in some of the areas hit hardest by foreclosures and falling prices, including Sacramento. Wall Street Journal 5/27/08
Economist challenges government data -- Oakland economist John Williams doesn't seem like the kind of guy to pick fights with the government. His Shadow Government Statistics Web site (shadowstats.com) has become a magnet for those convinced that official data put a happy-talk gloss on the nation's economy. The growing popularity of the site, which costs subscribers $175 a year, is testimony to the deep suspicion many Americans harbor about government information as the economy falls into a swoon. SF Chronicle 5/25/08
Lenders try to help homeowners in trouble but is it too little, too late? -- Banks are helping a broader array of homeowners struggling with their loan payments, but the sheer number of bad loans is overshadowing their efforts. Experts say lenders and loan servicers are now willing to work with financially strapped borrowers even if they are current on their loans. During the housing boom, banks generally modified home loans only after borrowers missed at least one payment and thus dinged their credit, sources said. One reason banks have changed their tune: record foreclosures. Orange County Register 5/24/08
Relentless rise in oil prices tests economy's resilience -- Only a few weeks ago, prominent policymakers and economists were cheerfully asserting that the U.S. economy would dodge recession and keep chugging forward despite a housing bust, a credit crunch and continuing job losses. But instead of clearing, the skies over the economy have ominously darkened in recent days. The chief reason is oil. And there are signs the nation may have reached an economic tipping point after years of shrugging off the petroleum problem. LA Times 5/24/08
Energy & Environment
It's no typo: Diesel leaps above $5 -- Prices jumped as much as 16 cents in the South Bay on Friday, punching through the $5 a gallon mark at a growing number of stations. The rise in diesel prices is a stunner for everyone from motorists to home remodelers to grocery store shoppers. Not only is the 6-cent average hike the biggest overnight increase this year, but the impact will ripple throughout the economy. SJ Mercury 5/24/08
The cost of gas: How two stations set their prices -- Shipments arrive overnight, whenever a remote sensor tells Sunoco that Kehler's tanks are low. The wholesale increase means Kehler will have to raise his pump prices soon - if he wants a shot at breaking even on gas sales. That decision - the type of pricing dilemma gas station managers face daily - is not as much of a no-brainer as you might think. If a station raises its prices before its competitors, it may lose gasoline sales. But the longer station managers wait - with wholesale prices rising - the more money they lose. AP 5/23/08
*Supply-demand imbalance boosts oil prices -- Even as the cost of crude oil has soared in recent years, the amount pumped from the ground hasn't. Worldwide oil production has barely budged, despite record prices. Since the start of 2004, oil's price has gone from $33 per barrel to $132. Production, meanwhile, has risen just 1.8 percent, to 84.6 million barrels per day. Faced with rising global demand and record prices, the oil companies have a powerful incentive to find, pump and sell as much crude as they can. Instead, they're having a hard time keeping their output level, much less expanding it. Stagnant production over the past few years makes some wonder whether the dreaded moment of "peak oil" has arrived. SF Chronicle 5/27/08
Toyota revs up hybrid vehicle production -- Toyota is preparing to rev up production of hybrids, announcing Tuesday its third plant in Japan for producing batteries that are key components for the "green" cars. LA Times 5/27/08
Innovative recycling lands house on tour -- Michele Brown, tour program manager for Build It Green, said the Richmond house is an example of the creative thinking in green design characteristic of the Bay Area. Build It Green runs two home tours each year throughout the Bay Area. Homes must apply to be on the tour and are inspected to make sure they measure up to the organization's standards. More than 1,000 people are expected to buy tickets to Sunday's 16-home tour. SJ Mercury 5/27/08
*Program may stall push for cleaner cars -- An obscure program embraced years ago by the state Air Resources Board threatens to dramatically scale back the number of cleaner-running cars that automakers are required to roll out in California. The board has operated a complex incentive system that rewards automakers with special credits for quickly introducing experimental and costly cars that run on alternative power sources such as fuel cells and electricity. With hundreds of thousands of credits and new limits on their use looming, automakers are expected to cash in soon. Over the next six years, they could be excused from building about 700,000 no-or low-emission vehicles. San Diego Union Tribune 5/26/08
Media & Entertainment
MP3 players losing muscle -- While still strong, sales have slowed and even begun to decline in some markets. Prices, particularly on the low end, are plunging, typically an indicator of slacking demand. Even the mighty iPod, which revived Apple and once vied with the Mac as the company's most important product line, has seen a marked decline in sales growth and attention. Meanwhile, after years of hype, music-playing cell phones - most notably Apple's iPhone - are starting to gain traction as iPod replacements. SJ Mercury 5/26/08
Finance, Budget & Tax
Rep. Speier named to finance panel -- U.S. Rep. Jackie Speier, known in the California Legislature as an aggressive reformer of the insurance and financial industries, was tapped this week for the House Committee on Financial Services. The committee, chaired by Rep. Barney Frank, D-Mass., tackles issues such as subprime mortgages, shareholders' rights and credit card reform. SJ Mercury 5/24/08
Warren Buffett sees U.S. in recession -- Warren Buffett, whose business and investment acumen has made him one of the world's wealthiest men, was quoted in an interview published today as saying the U.S. economy is already in a recession. The 77-year-old chairman and chief executive of Berkshire Hathaway Inc. gave the interview while he was in Europe for what he called a "deferred shopping tour," looking for possible acquisitions. LA Times 5/25/08
Venture Capital, Technology, & Silicon Valley
Conference takes on tech's future -- At this year's "Computers, Freedom and Privacy" conference, which ended Friday, the group's activism focused on composing an open letter to the next president of the United States calling for more thoughtful attention to technology policy. Among the core issues that kept resurfacing over the four-day conference were government data collection, network neutrality, intellectual property and patents. SJ Mercury 5/24/08
*Google, Facebook in stalemate over social data -- Days after Google unveiled Friend Connect, which lets the sites of musicians, political campaigns and others incorporate profile data from several social networks, Facebook began to block the program. Although Google was taking advantage of the same tools that Facebook made available free to other outside developers, Facebook said Google was violating Facebook's restrictions on data sharing. The two sides remain in a stalemate. Business Week 5/23/08
Facebook to clear clutter -- Having nearly tripled its audience and added about 20,000 new applications over the past year, Facebook's popular online hangout is about to undergo a housecleaning. Visitors who can't stand the clutter that's been piling up will be glad to see that the site's new look sweeps disparate bits of information into categories marked by tabs at the top of each user's customized home page. SJ Mercury 5/26/08
Cable Prices Keep Rising, and Customers Keep Paying -- Cable prices have risen 77 percent since 1996, roughly double the rate of inflation, the Bureau of Labor Statistics reported this month. The resiliency of cable is all the more remarkable because the Internet was supposed to change all things digital. Technology has led to more choices and lower prices for news and music as well as cellphone and landline minutes — not to mention computers, cameras, music players and phones themselves. Yet here is a rare instance where Silicon Valley has failed to break a traditional media juggernaut. And not for lack of trying. NY Times 5/24/08
Santa Barbara industrialist funds major awards to spark scientific research -- Now 80, Fred Kavli, a retired industrialist is launching what he hopes will be the 21st century's equivalent to the Nobel Prizes. In the process, he's looking to spark a renaissance in basic research in nanoscience, astrophysics and neuroscience, three scientific fields he believes will most help the human race in the future. And on Wednesday, the winners of the first Kavli Prizes in nanoscience (the study of molecules and atoms), astrophysics (the study of the universe) and neuroscience (the study of the brain) will be announced. The three will receive $1 million each at a September ceremony in Oslo. LA Times 5/27/08
