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U.S. Treasury Secretary Henry Paulson plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets.

“Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards,'' Paulson said in the text of a speech today in Washington. “This is creating a heavy burden on the American people and reducing the number of jobs in our economy.''

Treasury and Federal Reserve officials are exploring a new “facility'' to aid the market for securities backed by assets, Paulson said. Officials are considering using a portion of the bailout money to “encourage private investors to come back to this troubled market,'' he said.

The Treasury chief said the department is also considering having companies that accept new taxpayer funding get matching private capital short term cash loans.

Buying “illiquid'' mortgage-related assets is no longer being considered, he said.

“Our assessment at this time is that this is not the most effective way to use TARP funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role,'' he said, referring to the Troubled Asset Relief Program.

Paulson has committed all except $60 billion of the initial $350 billion allocated last month to address the collapse of financial institutions and markets, and Congress could reject approval for the remainder. Lawmakers including House Speaker Nancy Pelosi are pushing for aid to automakers including General Motors Corp., pressure that Paulson is resisting.

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The nation’s retailers saw October’s same-store sales take a nosedive and the gloomy reports point to a weak Christmas sales season.

Macy’s saw a 6.3 percent decline in same-store sales. It was one of the biggest declines the retailer has seen all year. Macy’s has 14 stores in Hawaii.

Costco’s same-store sales dipped just 1 percent. The Issaquah, Wash.-based big-box retailer has six locations in Hawaii.

Seattle-based Nordstrom, which opened its first Hawaii store at Ala Moana in March, saw same-store sales fall nearly 16 percent.

Target, which plans to open its first Hawaii store in Kapolei next spring, saw October sales drop just below 1 percent Faxless pay advances.

Wal-Mart Stores, on the other hand, which has eight discount stores and two Sam’s Club locations in Hawaii, reported a 2.4 percent increase in same-store sales.

• Macy’s October sales down 6.3 percent
• October same-store sales dip at Costco, plunge at Nordstrom
• Wal-Mart sales up, Target down

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Standard & Poor’s Ratings Services said Monday Constellation Energy Group’s credit will stay on a watch list.

“The company’s ability to shore up its liquidity and to reduce risk in its commodities business are key credit drivers,” said analyst Aneesh Prabhu in a research note released Monday.

The major credit rating agency — it put the Baltimore energy giant on watch Sept. 17 with threats of a downgrade — said a credit facility for Constellation from a consortium of banks set to expire in October was extended through the end of the year.

Constellation officials said Oct loan till payday. 31 they may need an additional $750 million in cash to stabilize the company’s financial position. MidAmerican pumped an estimated $1 billion into the company in September.

Standard & Poor’s move to put Constellation on credit watch in September eventually triggered the proposed $4.7 billion sale of Constellation to MidAmerican.

Constellation (NYSE: CEG) stock closed down 3 percent Monday at $23.46.

Constellation Energy plans to hold a third-quarter earnings call Nov. 6.

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The state Department of Revenue is holding a new business workshop on Nov. 25 to educate businesses that are encountering business-related tax issues for the first time.

The free workshop will be help from 9 a.m. to 1:30 p.m. at 1321 Murfreesboro Road in Nashville on the eighth floor. Tax specialists from various local and state agencies will provide the basic information needed to comply with registration and tax requirements payday advance lenders. Areas of discussion will include business tax, sales and use tax, unemployment tax and tax enforcement procedures.

Businesses may register online at www.tennessee.gov/revenue or by calling (615) 532-4975.

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Houston-based Waste Management Inc. on Monday withdrew its $6.73 billion bid to take over Florida trash hauler Republic Services Inc., paving the way for its planned merger with Allied Waste Industries of Phoenix.

Waste Management (NYSE:WMI) officials pointed to the current state of the financial markets in its decision.

"We believe that it would not be prudent to continue to pursue the acquisition of Republic," Waste Management CEO David Steiner said in a news release approved payday advance in seconds.

Republic (NYSE:RSG) reached a $6.2 billion takeover deal for rival Allied Waste (NYSE:AW) in June with the headquarters to be located in Phoenix.

Republic shares closed up $2 on Monday to end the day at $24.50. The 52-week high was $36.52 on Sept. 19. The 52-week low was $19.99 Oct. 10.

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The outlook for U.S. stock markets improved dramatically Wednesday morning after the Federal Reserve and European central bankers announced a coordinated emergency rate cut.

The Federal Reserve reduced its benchmark discount rate by 0.5 percent to 1.5 percent. The European Central bank reduced its benchmark to 3.75 percent and the Bank of England cut its benchmark to 4.5 percent. Canada, Sweden, and Switzerland also reduced rates. In a joint statement, the central bankers said they were taking the acting because “the recent intensification of the financial crisis has augmented the downside risks to growth.”

Futures on the Standard & Poor’s 500 Index jumped to a 24.10 point gain to 1,029.90 at 7:02 a.m., two minutes after the Fed’s announcement. Dow Jones Industrial Average futures were up 512 points to 9,690 (payday loan).00 and Nasdaq 100 futures were up 27.25 points to 1,364.25.

Prior to the Fed’s announcement, the S&P 500 futures contract had tumbled as much as 43 points on the heels of steep declines overseas. The Nikkei 225 declined more than 9 percent on the Tokyo Stock Exchange as investors fretted about a global recession and the S&P 500 Index below the 1000 level for the first time in five years Tuesday.

European stock markets rebounded swiftly; nearly erasing loses of as much as 5 percent. The FTSE 100 Index was down 20 points, or 0.24 percent, to 4585.11 on the London Stock Exchange at 7:06 a.m.

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A N.Y. judge has put a temporary hold on Wells Fargo & Co.’s proposed $15.1 billion buyout of Wachovia Corp., Citigroup announced Saturday night.

Judge Charles Ramos of the N. Y. Supreme Court has ordered Wachovia (NYSE:WB) to court on Friday. He will hold a hearing on whether the Wells deal violates Wachovia's earlier agreement to sell its banking operations to Citigroup for $2.16 billion.

Until then, his order issued stops Wachovia and Wells from consummating the deal.

The Wachovia/Citigroup deal was brokered Sept. 29 with the help of federal regulators. Citigroup (NYSE:C) says it includes an exclusivity agreement that prevents Wachovia from negotiating an acquisition by anyone else.

On Oct. 2, Wachovia announced it negotiated a deal with San Francisco-based Wells (NYSE:WFC). That calls for the sale of the entire bank holding company to Wells for $15.1 billion. The Wachovia board approved that deal last Friday.

Wells has insisted there is no bar to its deal with Citigroup, based in New York (fast cash). Now Ramos has called Wachovia into court to defend that position.

The court records were not available Sunday morning. But Citigroup says Wachovia objected to the proceedings and attempted to head off the order.

Citigroup says it is prepared to resume its negotiations to buy most of Wachovia’s assets. Some parts of the bank, such as Wachovia Securities, are not part of that deal, which involves financial guarantees from the Federal Deposit Insurance Corp. The proposed Wells deal would include no such guarantees.

Citigroup says it has been providing funds to Wachovia to preserve its liquidity since the Sept. 29 agreement. It says it was completing the requirements of the deal when Wachovia made its surprise announcement late last week.

Wachovia officials could not be reached for comment.

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Wachovia was in advanced merger discussions with Wells Fargo late Sunday, the Wall Street Journal reported, citing people familiar with the discussions.

Wachovia was also in talks with Citigroup (NYSE: C) in New York over the weekend. But by late Sunday, Wells Fargo was emerging as the preferred bidder. Wells has a better track record of successfully integrating a major bank merger and has escaped the current credit crisis relatively unscathed.

In contrast, it was only last fall that Citi was criss-crossing the globe with tin cup in hand, seeking to raise billions to offset its substantial losses amid the credit crisis.

Both Wells (NYSE: WFC) and Citi see an acquisition of troubled Wachovia's extensive branch network in the Eastern United States and deposits as a rare prize.

Details on the Wells-Wachovia negotiations were not available late Sunday.Even though Wells would have the upper hand in acquiring Wachovia, the combined bank's name, its management team and its headquarters location were still open questions late Sunday.

In March, Wells Fargo CEO John Stumpf told the San Francisco Business Times that he was not averse to conducting a Fed-assisted deal similar to the help the central bank gave J.P. Morgan Chase to acquire faltering Bears Stearns in March. As of Sunday, the government was reportedly quite reluctant to provide similar aid to a buyer of Wachovia.

This month, Wells Fargo Chairman Dick Kovacevich told those attending a Beverly Hills business conference that the bank "often buys fixer-uppers.

"Given the financial conditions today, I feel like a kid in a candy store," Kovacevich said.

Spain's Banco Santander also was reportedly interested in Wachovia, but long-time industry observers were dubious that the U.S guaranteed approval cash advance loans. government would be interested in working with a foreign bank to rescue Wachovia.

A combination of San Francisco-based Wells Fargo and Charlotte-based Wachovia (NYSE: WB) has long been the subject of speculation among those following the banking industry. Wells brings to the table its dominance in the West, which would fit nicely with Wachovia's strong presence in the East.

Reports late last week indicated that struggling Wachovia was seeking a suitor. The bank fumbled badly on its ill-timed purchase of Oakland-based Golden West Financial, parent of World Savings. Much of the bank's mortgage woes stem from that $25 billion deal completed in 2006. Many analysts said that deal was a huge mistake even before it closed.

The U.S. Treasury and Federal Reserve were reportedly involved in Sunday's negotiations, presumably to help spur a deal that would put Wachovia in stronger hands. An acquisition of Wachovia by Wells Fargo would represent a departure from the San Francisco bank's long-running strategy of focusing on internal growth and concentrating on selling more products and services to customers within its current branch territory in the western half of the United States.

But last week's government-orchestrated deal in which J.P. Morgan Chase (NYSE: JPM) acquired failed Washington Mutual created the nation's second coast-to-coast bank, after Bank of America. (NYSE: BAC) Large branch networks allow banks to spread their costs over more customers, while providing those customers with greater convenience and access to ubiquitous branches and ATMs throughout much of the country.

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Just like recess vanished in a number of public schools across the nation, lunch breaks in the workplace might also become a thing of the past, based on findings in a recent survey.

Company executives polled said their average lunch break dwindled to 35 minutes, compared to 42 minutes five years ago, according to a survey published by OfficeTeam, an administrative staffing firm.

On top of that, some managers also admitted they worked through lunch more than half of the workweek.

The survey was conducted via telephone to 150 randomly selected senior executives at the 1,000 largest companies in the nation.

"In today's 24/7 workplace, a lunch break often takes a back seat to e-mails, phone calls, meetings and pressing deadlines," said Dave Willmer, executive director of OfficeTeam. "Many people are doing more work with fewer resources and, therefore, putting in more time at their desks. Some may also be working across time zones and forgoing lunch breaks to accommodate their colleagues' schedules."

As lunch breaks keep shrinking, so are the number of tony restaurants offering the midday meal.

Glen Sanders Mansion served its last lunch Aug. 1.

Angelo Mazzone saw it coming: During its heyday 20 years ago, the Scotia restaurant was serving 100 lunches a day. In the end, a good day was 20.

"I should have done it 10 years ago, but I didn't have the heart," Mazzone says.

He isn't the only proprietor responding to the waning lunch crowd at upscale venues.

Anne Trimble, owner of the posh La Serre in downtown Albany, started offering a "bistro" menu two years ago to boost noontime business.

Lunch patronage had declined 70 percent over the last 20 years, from more than 100 a day to 30 payday loan. Over the years, the 30-person staff La Serre employed in the 1980s has been reduced to 16.

Trimble also adjusted for a crowd that was eating lighter and spending less.

Known for its haute French cuisine, La Serre now offers a lunch menu with burgers and sandwiches. It's a stark contrast to the leg of lamb and roast pork lunch specials Trimble's diners demanded 20 years ago.

"We started offering a menu for people who don't want to have a $25 entree," Trimble said.

Lunches started falling off in 1984, the same year the Internal Revenue Service's Tax Equity and Fiscal Responsibility Act of 1982 kicked in, Trimble said. The legislation reduced from 85 percent to 50 percent the percentage of entertainment expenses that businesses could claim as tax write-offs.

It's the same time that lunch business started declining at Glen Sanders Mansion, which once was a popular spot for General Electric Co. executives.

"Everything changed when the business guys stopped going in and having martinis at lunch," Mazzone said.

At the same time, brown-baggers reached a new high in 2007, increasing to 38 per person per year from 35 in the previous year, according to a June 2008 study from the NPD Group, "How Brown Bagging Is Affecting Food Service Lunch." The number translates to 8.5 billion bagged adult lunches per year.

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Mexico's central bank left its benchmark interest rate unchanged, breaking a streak of three consecutive increases, as policy makers said economic growth may slow and inflation will probably remain within forecasts.

The bank's five-member board, led by Governor Guillermo Ortiz, left the key lending rate at 8.25 percent.

While inflation may continue to accelerate, the bank's statement that price increases will probably remain within its forecasts signal policy makers will leave rates unchanged for the rest of the year, said Gabriel Casillas, an economist at Banco UBS Pactual. The bank raised rates three quarters of a point since June in a bid to tame the fastest inflation in five years.

“It's a less hawkish statement,'' said Casillas, who is based in Mexico City. “Saying inflation will be within the forecasts confirms that the hiking cycle is finished.''

The bank said in a statement that the economy was more likely to weaken because the global economic slump has intensified, and that consumption and job creation have been reduced in Mexico.

“The risks of slower economic activity have increased,'' the statement said.

The bank's decision to leave rates on hold matched the forecast of 22 of 23 economists surveyed by Bloomberg. One economist forecast a quarter point increase.

Consumer Prices

Higher food and energy costs helped push consumer prices up 5.57 percent in August from a year earlier. Still, inflation remains within policy makers' third-quarter forecast of 5.25 percent to 5.75 percent.

In July, the bank increased its inflation forecasts through 2010 because of higher-than-expected commodity costs. Since then, the prices of crude oil, wheat, soy and corn have dropped at least 30 percent since their record highs.

Policy makers may also have been hesitant to increase rates because of the turmoil caused by the world's worst credit crisis since the Great Depression, said Alberto Bernal, an economist with Bulltick Securities Corp. in Miami.

“It's better just to stay pat,'' Bernal said in a telephone interview paydayloans. “The uncertainty is just too much.''

Finance Minister Agustin Carstens said earlier this week that economic growth will be reduced by the financial crisis in the U.S. and the fall in global oil prices may have a “serious'' effect on Mexico, which gets 40 percent of its federal budget from crude.

Gross Domestic Product

Gross domestic product would have expanded 4 percent this year without the problems in the U.S. housing and credit markets, compared with the government's forecast of 2.4 percent growth, Carstens said in an interview on the Televisa network.

Mexico's monetary policy in coming months will depend in part on the U.S.'s ability to resolve its financial crisis, said Rafael de la Fuente, a senior economist at BNP Paribas SA in New York.

“Worse-than-expected headline numbers won't push the central bank to hike if there are problems in the U.S.,'' said de la Fuente, who forecasts an increase in the fourth quarter. The Mexican bank won't raise rates so long as the U.S. credit crisis puts a drag on the Mexican economy, he said.

The central bank forecasts that inflation will peak at 6 percent in the final quarter of this year then subside in 2009. It isn't expected to reach the central bank's goal of 3 percent until at least 2010.

Economists surveyed by Citigroup Inc.'s Banamex unit predict the bank will leave its benchmark interest rate unchanged for the remainder of the year, according to a survey released yesterday.

Economists forecast that Banco de Mexico will reduce the key lending rate next year, the survey said.

Mexico's weakening economy makes the central bank wary of tightening consumption more with a rate increase, said Vitoria Saddi, an economist with RGE Monitor in New York.

“They don't have any interest in forcing the slowdown even further,'' Saddi said.

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