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Show DAILY I H ft A It I 0 Delta Stocks soar as investment banks post higher profits Con tinned from Joe Bel Bruno lnvestmcra bank sttxks trade. soared Tuesday after Goldman Sachs and Lehman Brat hers Those days might have ended when Bear Stearns Chief Executive Alan Schwartz assured investors last week that reported profits that soothed the frayed nerves of investors who were the U.S. investment bank had a strong balbracing for a domino effect after the near-- f ailure of Bear ance sheet with plenty of cash. Stearns. He gave few other details, and But the good news from panic ensued. two of the industry's top Clients fled for the exits, names hardly put investment decimating the stock price. By banks in the clear, and their the weekend, Schwartz was executives are learning to acforced to sell his company for cept more openness in Wall just $2 a share to JPMorgan Street's secretive culture. Chase & Co. to avoid bank"It is no longer OK to be in ruptcy. a black box," Lehman Chief The rest of Wall Street paid Financial Officer Erin Callan attention. told The Associated Press. On Tuesday, Lehman Broth"There will be a lot more honers Holdings Inc. provided much more information about esty from us as an industry, and it is painfully obvious this its balance sheet and operawill be the biggest change." tions than in past quarters. Callan spent almost an hour Investors were bolstered not just by the investment instead of the usual 20 minutes or so bank earnings but by the briefing analysts Federal Reserve's move to cut on a conference call before interest rates. They responded taking almost an hour's worth of questions. by sending brokerages and. Goldman Sachs Chief Finaninvestment banks to their best finish since 2001, lifting the cial Officer David Viniar did Dow Jones industrials more much the same. He gave dethan 420 points. tails about the company's proInvestment banks are noprietary trading desk, which torious for being tightlipped the firm typically doesn't reabout trading positions, tacveal much about, and made a tics, and the contents of their point of specifying how much multibillion dollar portfolios. cash is on the balance sheet. d $3.23 a share, for the quarter that ended last month. But both Goldman and The str.it cgy appeared to pay off. "What we saw from the investment hanks was the best we've seen so far." said Matthew Albrecht, an equity analyst who follows investment banking for Standard & Poor's. That informal ion could give rivals an edge and cost billions of dollars in a split second Lehman said investment banks still face a number of obstacles, and could not predict when the credit markets would begin to turn around. Goldman posted net losses on residential mortgages and securities of $1 billion. Credjt products produced another $1 billion loss, and investment banking returns were sluggish. "Market conditions are clearly very difficult," Chairman and Chief Executive Lloyd Blankfein said in a statement. Lehman took a $1.8 billion write-dowduring the first quarter because of deterioration in the credit markets. It had taken about $2.13 billion s in the previous in two quarters combined. Capital "Investors are requiring fifth-large- more information," he said. "And when it comes down to it, they don't want to own what they don't understand. The best way for that to happen is when transparency trickles down to the common investor." Lehman shares surged more than 46 percent after the bank reported first quarter earnings of $489 million, or 81 cents per share, to surpass analysts' expectations. While that figure was still down significantly from a year earlier, investors and analysts were pleased that there and that were no surprises the investment bank did not skimp on details. -- ; IVistt.m said Tuevlay that he would not he able to pnn ide det.uls on the convilnf.u ion disl?ti cussions I le said the proeevs IX Ita's boitrd is conducting to two companies. review strategic alternatives is "fluid The disclosure was made in a letter from the head of the "We are proponents of conunion at Delta. Lee Moak, solidation, but it does hive to e Delta pilots. be the right deal," Bastian said. to The letter does not mention Asked by an analyst why Northwest by name, but makes Delta doesn't seem willing to references to the other union as move forward without a pilot deal first. Bastian responded. the only one Delta pilots have "No. I'm not going to bite." been talking to. Multiple officials close to the talks have said Bastian reaffirmed Delta's in recent months that the other first quarter earnings guidance. He said the company will be company was Northwest. r The letter talks about the dis- updating its guidance cussions with the other carrier considering higher fuel costs. in the past tense,, suggesting "It is not out of the question at least for now there won't be for Delta to be profitable this further talks. year, albeit it modestly profits The two carriers don't able," Bastian said. Delta has now targeted $550 need a pilot seniority integramillion in productivity initiation deal in advance to move tives for 2008, a $150 million forward with a combination, but Delta Air Lines Inc. exincrease over its previous plan. The airline is deferring any ecutives have said they would decision on 2008 pay increases not move forward with any combination unless the senior- for employees until executives "better understand the outlook ity of t heir employ ees w as for our business," according to protected. combina- the memo sent to employees A tion deal could proceed without Tuesday. In Salt Lake City, a major a pilot seniority agreement, but that would be up to the boards Delta hub, employees said of the two companies. Tuesday they were aware of the severance plan but were At least one airline analyst, told not to comment to reportCalyon Securities' Ray Neidl, sounded doubtful that will hap- ers. Delta has 3,750 workers in Utah. pen, at least in the near term. rank-and-fil- full-yea- n write-down- markets revenue fell 52 per- cent to $1.7 billion because of continued deterioration of the credit and mortgage markets. The company's chairman and chief executive, Richard Shares of Goldman Sachs low Fuld, characterized the credit Group Inc. hit a environment as "challenging." Monday but rose more than 16 percent Tuesday after it Bear Stearns, one of Wall reported first quarter numbers Steet's most storied investment banks, was forced to that were better than Wall Street expected. Those figures sell itself just days after its were also sharply lower than a cash supply evaporated in a matter of hours, as investors year ago. Goldman Sachs, the world's and lenders worried over the largest investment bank, post- company's investments in ed a profit of $ 1.51 billion, or risky debt. st r OP LLADRP' Learning to care Growth Continued from B6 fall enough to combine with lending rates to once again equate affordability, only then will Utah start to again build houses en masse. In the interim, construction will be a drag upon the economy." Reflecting the sector's job unemlosses, construction-baseployment claims jumped 1,700 to 4,500 for the first 12 weeks of the year from 2,800 in the same period a year ago, he said. Those claims, which account for 25 percent of the state's total unemployment claims, are finally starting to reflect the seasonal d Utah's economy are several industries that continue to be consistent job generators. That includes trade, transportation and utilities, which is now the lead driver of job growth in the state with the addition of 6,700 new jobs in the year ended Feb. 29. Much of this sector's growth is driven by the staffing of new retail businesses built this past year, Knold said. "However, this 6,700 job gain can easily be cut in half by the end of the slowdown in construction activ' ity in winter, he said. "The past two years were actually an anomaly because construction activity continued right through winter. But that boom is now over," Knold said. Financial services, also suffering from the credit crisis and housing slump, also saw a slowdown in job groWth. That sector saw a gain of 900 new jobs to 75,300 jobs in the year ended Feb. 29, compared with a gain of 1,300 new jobs in the year ended Jan. 31. "The longer the housing slump continues, the greater the possibility of jobs losses in financial services," Knold said. But, helping to shore up year if consumers continue to be hit by high gas and food prices, angst over housing price drops and uncertainty over the economic future," he said. Industries in education and health grew 4.2 percent, or 5,900 new jobs, over the past year a sector that continued to show consistent growth of around 4 percent annually in the past decade even during the downturn of 2001 through 2003, when the overall Utah economy added no new jobs. Professional and business services also posted 5,500 new jobs in February over the past year, with growth in the number of knowledge-based- , high paying jobs in engineering, architecture, accounting, consulting and legal services offsetting slight job losses in temporary help or placement services. LOSEE Jewelers t Square - (801) OnlyN. in CottonTree Moo 2230 university PKwy iat iom 6:30 pm www.loscejewelers.net Provo , 373-100- 0 Fridays until Bpm STA6USHEP 195i Wednesday March t J 1 I 19th-Saturd- March 22nd J" ay r' I u S W AM TUE UnO VXIM 111 i irnr r e a otto ENTER T0WIN . m5t be etfteen desK .Ber"" .One f person . nk LMO I lr L.JkA L nMTrpT I I On Saturday March 22 nd, brina the whole family into the North Orem Macey's store to play our "Hop on the Easter egg contest" fAflrcn : All you do is hop on a numbered Easter egg printed the floor in our store after we make the announcement to play. on to Macey's and meet our Easter receive a Easter helium balloon and bunny FREE! Bring your own camera JProm home for pictures with our Easter bunny. Come If we call the number of the egg you are on...you are a winner of a prize...prizes vary from candy Easter eggs to bigger prizes like a snowboard, gift certificates, stuffed animals, toys and more... Balloons will be handed out Prom 11 AM till 6 PM on Saturday March 22, 2008. -- r r; ; 10:00 751 D MACEYS I 1 rem Macey's Only m until 6:00 Ph WH1E SUPPLIES LAST -- 1 'V l' Vl fi Hey kids! On Saturday March 22 nd, have mom or dad bring you to Maceys for our annual Easter egg hunt Prom 11 AM till 6 PM. This contest is for kids ages 18 months to 12 years old and you must be accompanied by an adult. you do is look throughout our picture of an Easter egg. All PfeS" V. Planter's $ k 49 Pacific Friend L 11 oz. Mandarin Oranges $ l-J- for store for a Gulttard 11.5 oz, Chocolate Chips 3 , K Planter's 2 lb. Honey Roasted or Dry Roasted iff) E Peanuts I 7l J Pineapple 1 16 oz. Thin Spaghetti. Spaghetti ' I 1.25 Oz. Spaghetti. Fajtta, Taco, Western Family 10.5 oz. Butter. Theater Style, Kettle or Giant JlJ f " ' " - Mrs. Cubbisons 10 oz. Seasoned or Cornbread r?fftt- Microwave - w Applesnax 4 ct. Homestyle, Unsweetened, Strawberries. Raspabenesor Dixie 100 ct. Flexible Striped Impenal 8 oz. Spring mm Coloring .Vj C - Elbow, Angel Hair, Fettuccine, Farfelle straws U , rr immmm, Stuff ina ltS-Z-S Keeble; 6 oz. Graham Cracker - Pie Crusts or Penne Pasta 99 6 oz. Original Flavor Only Craslns S S" f I. - 4 Miracle 1 Bubbles J;rJ n . I I l $1 um Western Family 16 oz. Western Family 16 oz. Western Family 6 oz. Butter or Canola Brown Gravy, Country Style Gravy, Turkey Gravy and More... Walnuts Light Corn Syrup Cooking $"299 f3CjJ0 sPrav l49t Mixes t JXs,:.t-- 360 ct. ' V e Bags, 5 lbs. Approx. Weight Frozen Boneless Skinless - u ; I. LIri "i or Tenders $1791"'J JL igJrisS' V $199A; P.nI f A- - Zee Napkins J aam Books McCormteK i5SLi3 r''Tff' m FOR Seasoning Maceys employees and their immediate amilies are not eligible to play. Western Family 20 oz. Sliced, Crushed, wmmutm Chunk or Tidbits I " H Barilla Once you find a egg picture anywhere in our Easter prize. V; employees and their families not eligible to play. J store, you need to go to one of our coloring stations and color your egg picture. When you are done, take your colored egg picture to the service desk for a special j family Bananas 4 EASTER EGO HUNT - Golden Ripe s ANNUAL WW yF 'W. lb. rci bvnuncu biu.iwvui c IPre-Package- Chocolate S'S 2E5iZy f ft' at We will play the game every half hour starting 11 AM until 6 PM on Saturday, March 22nd. Bring 1 the whole and have some fun!! iV.l jCJLI' . O'jSti |