Tech Focus PlayBook has potential, but it needs apps, see Page D3.
THE BULLETIN • TUESDAY, APRIL 19, 2011
2,735.38 NASDAQ CLOSE CHANGE -29.27 -1.06%
12,201.59 DOW JONES CLOSE CHANGE -140.24 -1.14%
1,305.14 S&P 500 CLOSE CHANGE -14.54 -1.10%
Ten-year CLOSE 3.37 treasury CHANGE -.88%
$1492.30 GOLD CLOSE CHANGE +$7.00
STOC K S R E P O R T For a complete listing of stocks, including mutual funds, see Pages D4-5
B U S I N E SS IN BRIEF Chan’s Restaurant reopens after fire Eight months after a fire gutted Chan’s Restaurant along Highway 97 in Bend, owner Lap Chan reopened the restaurant Monday. Completion of $1.3 million in fire damage repairs and remodeling and the grand reopening coincided with the 25th anniversary of Chan’s purchase of the restaurant, which was known as the China Ranch when he purchased it in 1986. Hundreds of customers joined in celebrating the 25th anniversary and the reopening, which includes lunch and dinner specials at 1986 prices of $2.25 and $6.95 for the first eight days. He said the remodel provided between eight and 30 jobs for local construction workers and he increased his restaurant staff from 20 before the fire to 30 for the reopening.
Travel photographers find a space to sit still
Lithia buys Portland auto dealerships Lithia Motors, the Medfordbased company that owns Bend Honda and Chevrolet Cadillac of Bend, bought two Mercedes-Benz dealerships in Portland and Wilsonville on Monday, along with BMW and Mini Cooper franchises in Portland. Lithia purchased the dealerships from Don Rasmussen Co., according to a news release. The stores add $176 million in estimated annual revenues. The ninth-largest auto dealership in the nation, Lithia has 85 stores in 12 states, according to the news release. — From staff reports
Consumer prices Changes from the preceding month in the Consumer Price Index for all urban consumers: 0.6 percent
0.4 0.2 0 -0.2 -0.4 -0.6 MAMJ J ASOND J FM 2010 2011 Note: All figures seasonally adjusted Source: Bureau of Labor Statistics AP
$42.957 SILVER CLOSE CHANGE -$0.391
S&P puts ‘negative’ outlook on U.S. rating By Rebecca Christie and Ian Katz Bloomberg News
Central Oregon jobless rates dip Unemployment rates in all three Central Oregon counties dropped slightly in March compared with February rates, the Oregon Employment Department announced Monday. Crook County’s 15.4 percent seasonally adjusted rate came in 1.1 percentage points below February’s rate and 1.3 percentage points below March 2010. Deschutes County recorded a 12.3 percent seasonally adjusted unemployment rate last month, 0.9 of a percentage point below February’s rate and 1.9 percentage points below March 2010. Jefferson County’s 12.6 percent jobless rate in March dropped 0.8 of a percentage point from February and 1.1 percentage points from March 2010. Oregon’s statewide unemployment rate for March was 10 percent, essentially unchanged from February’s rate, according to a news release from the Employment Department.
Rob Kerr / The Bulletin
Photographers Regula and Christian Heeb opened the Cascade Center of Photography in southwest Bend last month. The Heebs are professional travel photographers who have published more than 100 books.
Central Oregon couple open Cascade Center of Photography successful and published ones, with more than 100 books to their credit. “We do it by instinct,” Christian Heeb said of their way of starting the business. They’re not looking to make a lot of money off the project, as their own photography assignments continue to keep them financially secure. They just want to break even. More importantly, they want to cultivate and maintain a photographic community with their center as a sort of gathering place.
By Jordan Novet The Bulletin
or decades, Swiss-born travel photographers Christian and Regula Heeb kept bottled up a wish to open a place to hold photography classes and gallery showings. Last month, after months of preparation, the couple opened just such a place, called the Cascade Center of Photography, a first-floor space in a southwest Bend building. Last year, they said, they drove by the spot while on the way to visit their accountant, and they thought it would be just right for their long-held concept. The Heebs, 40-somethings who have had a house near Horse Butte southeast of Bend for more than 10 years, both continue to work on independent photography assignments in far-flung locales around the world. But now they are maintaining a destination of their own, which already has been drawing the attention of budding photographers
The basics What: Cascade Center of Photography Where: 390 S.W. Columbia St., Suite 110, Bend Employees: Three Website: http://www.ccophoto.com Phone: 541-241-2266
and veterans alike. “We decided to do more local stuff, you know, besides the international business, to spend a little more time in Central Oregon, instead of always running around,” Christian Heeb said. Later this month, he said, the photography center, complete with a commercial photo studio, should have regular daily business hours. Till then, it will continue to be open by appointment. The couple admit they are not business people, just photographers, albeit
Citigroup posts $3B profit despite losses By Eric Dash New York Times News Service
Citigroup took another halting step forward Monday in its long march back from the brink, reporting a $3 billion profit in the first quarter, in spite of continuing losses in its mortgage unit and lackluster investment banking results. The company earned 10 cents a share, a penny above analysts’ expectations, but down 32 percent from the same period a year ago, when it earned its first profit since the financial crisis struck. As has been the case for other financial giants, Citigroup’s revenue actually fell during the first quarter, as nearly every major region and business except Latin America experienced a slowdown from a year earlier. Overall, revenue declined 22 percent, to $19.7 billion. See Citigroup / D5
Is the center more focused on travel photographers who make pictures here, or is it focused on photographers who are here and making pictures wherever they choose? Christian Heeb: Yeah. Travel photography is really my thing, which I don’t think is, you know, feasible for Central Oregon. This center will be for any type of photography as a focal point in Central Oregon. See Photography / D5
Expectations grow for restructuring of Greece’s debt By Landon Thomas Jr. New York Times News Service
The Associated Press ile photo
Citigroup, which owns this Citibank branch in New York, reported Monday firstquarter 2011 net income of $3 billion, a $1.4 billion decline from the first quarter 2010.
The Greeks reject a debt restructuring out of hand. The European Central Bank fears that such a move would spread financial panic. And, meanwhile, the European Union and the International Monetary Fund insist that their recipe of bailouts combined with sharp spending cuts make restructurings unnecessary. Nevertheless, the notion keeps popping up that Greece, and perhaps even other weak European Union countries like Ireland and Portugal, will be forced to restructure. Almost a year after it was saved from default by a bailout of 110 billion euros, or about $157 billion, from its European partners and the IMF, the Greek economy continues to sag under 340 billion euros in debt. Greece’s budget deficit is expected to be 8.4 percent of gross domestic product this year, compared with a mandated target of 7.5 percent. See Greece / D5
Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating unless policymakers agree on a plan by 2013 to reduce budget deficits and the national debt. “If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns,” New York-based S&P said Monday in a report that maintained its top rating on U.S. long-term debt while lowering the outlook to “negative” for the first time. S&P said there’s a one-inthree chance that the rating might be cut within two years and that its “baseline assumption” is that Congress and the Obama administration will come to terms on a plan to reduce record deficits. Treasuries and the dollar rebounded from early losses following the statement, while stocks declined. Moody’s Investor Service, which has a stable outlook on U.S. debt, said Monday the U.S. budget debate is “positive” for the country’s credit. “For most investors, there is nowhere else to put their money as the U.S. still has the strongest, deepest, most-liquid markets in the world,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ. “There is no alternative.” The yield on the benchmark 10-year Treasury note jumped as high as 3.45 percent in the minutes after the S&P report from 3.37 percent. See Outlook / D2
Why does the warning on U.S. debt, deficit matter? By Kevin G. Hall McClatchy-Tribune News Service
WASHINGTON — A surprise warning about U.S. debt by credit rating agency Standard & Poor’s sent stocks plunging Monday and crystallized the threat that mounting federal budget deficits and national debt pose to the U.S. financial system and the American way of life. S&P maintained the coveted AAA rating on U.S. government debt, but switched its outlook from stable to negative, a sign that the ratings agency has doubts about Washington’s prospects for taking effective action to curb deficits and debt. The surprise action, considered belated by many financial analysts, raises the prospect that the United States could be deemed less creditworthy, which would raise the cost of borrowing for government, business and taxpayers alike. Here’s a deeper look at what this is all about.
What is Standard & Poor’s, and why does its opinion matter? S&P is a nationally recognized statistical rating organization. It rates debt, in this case U.S. Treasury bonds, in terms of the risk of default they pose to investors in them. U.S. government securities have long enjoyed the top AAA rating but are now viewed as at risk for a downgrade of creditworthiness. See Q&A / D2
The Bulletin Daily print edition for Tuesday April 19, 2011