Baby Leopard Brothers Come to San Diego Zoo

Meet Riki-san and Haui-san, a cute and clumsy pair of clouded leopard cubs that made their debut this week at the San Diego Zoo. The 14-week-old brothers came to Southern California by way of the Nashville Zoo at Grassmere, which has a breeding program aimed at boosting the numbers of this species, listed as vulnerable by the International Union for Conservation of Nature (IUCN). Named for their cloud-like spots, males of the cat species can weigh up to 50 lbs (22.6 kg), and can be found in forest pockets from the foothills of the Himalayas to eastern China and Southeast Asia. Known for their acrobatic lifestyle, the clouded leopard and the margay from South America in fact are the only cat species that can scurry down a tree head first. Riki-san and Haui-san will remain for 30 days in a quarantine unit at the zoo, where they can be seen climbing on (and tumbling off) scratching posts and wrestling with each other. At 13 pounds (5.9 kilogram), Riki-san is the larger of the two but is also the more timid one, while 11.5-lbs (5.2-kg) Haui-san is feistier and eggs on his brother to play, according to the zoo. There are believed to be fewer than 10,000 clouded leopards left in the wild and they face threats of deforestation and hunting. (Poachers seek their gray-and-black coats and some of the cats' body parts are used in traditional medicine).

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Climate Skeptics Swayed by Consensus, Not Evidence

Conservatives are less likely to accept the reality of human-caused climate science when presented with supporting scientific evidence. But tell them that 99 out of 100 climate scientists agree on the subject, and conservatives will be more likely to accept that humans are altering the climate, according to a new pilot study. The findings, presented today (Dec. 7) at the annual meeting of the American Geophysical Union, suggest that scientists shouldn't break out the graphs and tables when talking climate with conservatives. Instead, climate advocates should emphasize how much of the scientific community agrees on the subject. Conservatives skeptical In general, those with more conservative views tend to be more skeptical about climate change. "People with very strong free-market support had very high skepticism of climate change," said John Cook, a cognitive psychology doctoral candidate at the University of Queensland. Such individuals also tend to distrust scientists and scientific processes such as peer review, he added. But conservatives haven't always doubted climate change. Global warming only became a polarizing issue after the 1997 Kyoto Protocol negotiations, a United Nations treaty that set targets for countries to reduce their greenhouse gas emissions. Since then, Republicans and Democrats have been sharply divided on the issue: a recent Pew Research Poll found that 85 percent of Democrats believe in climate change while less than half of Republicans do. And a study by the Union of Concerned Scientists found that conservative media outlets like FOX News and the Wall Street Journal routinely present misleading information on the state of climate science, while free-market organizations such as the Heartland Institute have planned anti-climate change educational programs. But efforts to convince conservatives of the threat of global warming have mostly fallen flat. When scientists explain the evidence to conservatives, only 3 percent alter their positions, Cook told LiveScience. Changing minds Cook and his colleagues wanted to see what actually would change conservative minds. He asked a group of 225 people to fill out a survey, in which they rated their belief in human-caused climate change on a scale of 1 to 5. The survey also asked respondents to rate their belief in a free versus regulated market, as well as their distrust of climate scientists. Cook identified those individuals with strong free-market beliefs as conservatives. (Past studies have shown that holding free-market beliefs correlates strongly with identifying as a Republican and with holding socially conservative views on gay marriage, abortion and other hot-button issues, Cook told LiveScience.) Then, one group read a statement presenting evidence for climate change, while others read statements emphasizing the scientific consensus. A third, control group got the original survey, but without any climate statements. None of the statements moved the needle very much, on average, but those who waded through facts about climate change reported more skepticism than those who read no statements about climate change at all. "The evidence group had a slight backfire effect," Cook said. But those reading about the scientific consensus were more convinced about the reality of climate change than were controls. Cook has no idea why conservatives should be moved by the consensus of scientists, whom they tend to distrust, but one possibility may be that conservatives place greater value on authority, on average, than do liberals. "It's quite counter-intuitive and not what I expected," Cook said. He plans to investigate why this contradiction exists in follow-up studies.

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10 Gifts for the Geek Who Has Everything

You wouldn’t buy a new toilet snake for your buddy the plumber, because he already has a top-of-the-line model. And if he wants a new one, he should pick it out himself. So why on earth would you buy a laptop, tablet or smart phone for the tech geeks on your list when we either already have these products or would need to pick our own? Fortunately, there are plenty of high-tech gifts that even hardcore geeks probably don’t have. Here are our 10 favorite gifts for geeks who have almost everything. PC On a Stick: Android 4 Mini PC MK802 II The geeks on your list may have an ultra slim smart phone, a lightweight laptop and a tiny tablet, but they probably don’t have anything as pocket-friendly as a computer on a stick. These days you can get a dual-core computer the size and shape of a USB Flash drive that turns any HDMI-capable TV or monitor into an Android station. The Android 4.0 Mini PC MK802 II costs around $50 and provides performance that’s good enough to watch HD videos and the flexibility to run Ubuntu or other Linux flavors in addition to Android. The slightly more expensive MK808 ups the ante with a dual-core CPU, more internal memory and native 1080p output. More: The 8 Cheapest (and Smallest) PCs in the World 3D Printer: MakerBot Replicator 2 Most serious geeks don’t do a lot of printing. We have tablets and phones with us all the time so why waste the paper? 3D Printing, on the other hand, is a whole other ball of plastic. With a 3D Printer like the MakerBot Replicator 2 ($2,199) your geek can take 3D models from the computer and “print” them out as colorful plastic models. What self-respecting geek wouldn’t want to do that? Double Robotics Telepresence Robot The geeks on your lists are already more than capable of making video calls from their tablets and phones, but they almost certainly don’t have a telepresence robot. Buy them a $1,999 Double Robotics iPad robot and they can attach an iPad to the top and use it to roll around rooms remotely, chatting with other people. With the Double Robotics, your geek will be able to roll over and communicate with other office workers while working remotely or patrol the house while on vacation. More: 7 Amazing Robot Gifts USB Wall Socket: Newer Technology Power2U Your phone, tablet, your Wi-Fi hotspot, your media player and even your charger all charge over USB. Yet, when you want to plug these devices into an outlet, you need to dig out a series of heavy, easy-to-lose AC adapters. However, with a USB faceplate kit like the $24.95 Newer Technology Power2U, the geeks on your list can upgrade any of their outlets to include two powered USB ports next to the two three-pronged outlets. More: Countdown: 10 Smartphones with the Longest Battery Life ScotteVest Jacket Like everyone else, geeks own their share of jackets. However, most of these jackets just have a couple of pockets that aren’t large enough to hold a gadget as large as an iPad. Enter ScotteVest, a company that makes a line of high-tech jackets and vests that have plenty of large, internal pockets to keep all of your devices safe and dry, even in the worst weather. Better still, most have an internal wire path that allows you to route your headphone wire up to your neck. LAPTOP Editor Mike Prospero was able to fit a ton of gadgets into the ScotteVest Sleeve 7.0 ($160) and its 23 pockets. SmartWatch: Sony SmartWatch Back in the 1980s, my fellow geeks and I wore our Casio calculator watches with pride, but these days, most of us leave our wrists bare, a waste of valuable skin real estate. However, now you can buy a smart watch that lets you control your phone, check email, play music or even get social updates, without wasting precious seconds digging in your pocket for your handset. Android phone-using geeks like me will love the Sony SmartWatch ($150), which pairs with your phone via Bluetooth and runs a wide variety of custom apps, including special Facebook and Twitter clients, along with email and a music player.The SmartWatch can also be configured to sound an alarm when you take it too far away from your phone, alerting you that you've left your handset behind. More: 5 Smartwatches They'll Love External Laptop Charger: Veho Pebble Pro or Hyperjuice 60wh The average ultraportable notebook gets barely more than 6 hours of endurance when running at 40 percent brightness. That’s not enough to get your favorite geek through a long plane ride or an active day running around the show floor at CES. Most of the external batteries on the market can only charge USB-powered devices like phones and tablets. However, there are a couple of options that will also charge a laptop. The Veho Pebble Pro, which really saved my bacon during hurricane Sandy, costs just $70 and comes with a slew of tips for charging. Mac users will appreciate one of the Hyperjuice batteries, such as the $170 60Wh version that promises an additional 20 hours of endurance. More: Best Battery Life: Laptops That Last 7 Hours Mechanical Keyboard: Unicomp Ultra Classic Your favorite geek will appreciate an upgraded keyboard that will allow them to type faster and game better when sitting at their desk. For the ultimate typing experience, nothing beats the feel of mechanical keys that spring back at you. I can type 10 to 20 wpm faster with the Unicomp Ultra Classic ($79), which uses the same “buckling spring” technology as the old IBM PC keyboards. Another solid choice is Rosewill’s attractive RK-9100 ($119) illuminated mechanical keyboard. More: 5 Things to Look For in Your Next Notebook Keyboard Portable USB Monitor: Monitor2Go or Lenovo ThinkVision LT1421 When we geeks are at our desks, we have a second or even third screen that lets us keep a ton of windows open. However, when we hit the road, we’re stuck staring at just one desktop. A portable monitor with DisplayLink technology is light enough to fit in our bags and flexible enough to send its video signal directly over our notebook’s USB port so we can have a second screen wherever we go. And even if the geek on your list already has one, it can be daisy chained together with your gift to provide a portable three screen setup. Though there are more than half a dozen portable USB displays on the market, two stand out: the 14-inch Lenovo ThinkVision LT1421 ($199), which is completely bus powered and has a very sturdy kickstand, and the 15.6-inch Monitor2Go, which provides a 1600 x 900 resolution display and the ability to mirror your iPad’s screen. More: 11 Perfect PC Accessories Gaming Mouse: Razer Naga No doubt your favorite geek has a mouse, but does their mouse have more than a dozen buttons? Many of today’s gaming mice come with a series of programmable buttons which can launch custom macros or open programs. If your geek is a big gamer, having the ability to assign actions to these buttons could mean the difference between winning and losing. If they don’t play games, they can use the buttons to launch their most-used programs or paste frequently used text into emails. Amongst many-button mice, the Razer Naga stands out for its tactile, easy-to reach buttons and speedy navigation.

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Television host and actor Gary Collins dies at age 74

Gary Collins, the former Miss America emcee who was also a television actor and host, has died at the age of 74. The Biloxi, Miss., resident died of natural causes just before 1 a.m. Saturday at Biloxi Regional Medical Center, Harrison County Coroner Gary Hargrove told the Associated Press. Collins's acting career began in the 1960s, when he appeared in several movies and TV shows, including "The Wackiest Ship in the Army." He starred in the 1970s TV series "The Sixth Sense" and hosted the television show "Hour Magazine" from 1980-88, for which the six-time Emmy Award nominee took home the prize as Outstanding Talk Show Host in 1983. He also served as the master of ceremonies for the Miss America Pageant from 1985-89. Collins is also known for his guest appearances on a variety of television shows, including "Charlie's Angels," "The Love Boat," "Fantasy Island," "Alice," and "Marcus Welby, MD." Born in 1938 in Venice, Calif., Collins's interest in acting started when served in the Army and was a radio and television performer for the Armed Forces Network. He married former Miss America Mary Ann Mobley in 1967, and the couple had one daughter together before separating last year, according to TMZ. Collins also had two children from a previous marriage. Collins moved to Mobley's home state of Mississippi in 2011, according to the Los Angeles Times. The Times also reports that he had a few run-ins with the law in recent years, including two DUI cases in California in 2007 and 2009.

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Starbucks tax avoidance has Brits frothing mad

As the US considers higher tax rates for the wealthy to deal with a budget crunch, a similar debate is going on across the pond. But in the UK, it's not the individually wealthy who are being eyed: It's those multinational corporations who, despite turning over hundreds of millions of pounds in revenue, routinely pay little to no tax on their local profits. Protesters against corporate tax-dodging are set to occupy Starbucks coffee shops across the UK tomorrow, just days after the company and other multinationals like Google and Amazon were heavily criticized by an influential Parliamentary committee. Starbucks has about 720 shops in the UK that last year generated sales of £400 million ($640 million). But in 2011 the company didn't pay a dime in UK corporate tax, despite saying in its 2011 annual report that "in particular, our Canada, Japan, UK, and China (business units) account for a significant portion of the net revenue and earnings of our international operations." In fact, the company only paid corporate tax once in the past 15 years. though Starbucks argues the company paid £160 million ($256 million) over the last three years in other business and employee-related taxes. Members of the direct action group UK Uncut said they plan to turn outlets into day cares and women’s shelters to highlight the company’s low tax bill, despite a company pledge yesterday to pay more. Think you know Europe? Take our geography quiz. “Until Saturday we won’t know how many shops our supporters will target," Uncut spokesman Tim Street says, "but we’re confident that it will make an impact. We have been campaigning against tax avoidance for the last two years since the Government’s comprehensive spending review. There is widespread public anger against corporate tax dodging which has become systematic and endemic," he says. “The country is really suffering under the austerity cuts, so to see big companies not paying their fair share adds to people’s anger. There’s no money yet, and hollow promises on press releases don’t fund women’s refuges or child benefits.” Earlier this week, Parliament's Public Accounts Committee criticized global firms such as Starbucks, Google, and Amazon for paying little to no corporate tax in the UK despite turning over hundreds of millions of pounds in revenue. All deny aggressive tax avoidance. Committee members said the corporations' practice of being based in lower-taxed countries, thereby preventing their profits from being taxed additionally in the UK, was an "insult" to British business. Repeating her call to "name and shame" companies, committee chairwoman Margaret Hodge told the BBC that “the inescapable conclusion is that multinationals are using structures and exploiting current tax legislation to move offshore profits that are clearly generated from economic activity in the UK. HMRC [Her Majesty’s Revenue and Customs, the British government's tax department,] should be challenging this, but its response so far to these big businesses and their aggressive tax planning has lacked determination and looks way too lenient.” She had previously supported a boycott of Starbucks. George Osborne, the British chancellor of the exchequer (equivalent to the US secretary of the treasury), responded by giving HMRC an extra £154 million over the next two years to crack down on tax avoidance. Starbucks didn't return calls for comment to the Monitor about the protests or the MPs’ criticism, but Thursday the company said it would now pay an extra £20 million ($32 million) over the next two years. In a statement the managing director of Starbucks' British arm, Kris Engskov, said: “Today, we’re taking action to pay corporation tax in the United Kingdom - above what is currently required by tax law. We know we are not perfect. But we have listened over the past few months and are committed to the UK for the long term. We hope that over time, through our actions and our contribution, you will give us an opportunity to build on your trust and custom.” Becky Jarvis, campaigns manager at the one-million strong online pressure group 38 Degrees, said companies had underestimated public opinion. “We have been campaigning on this for the last couple of years, but it seems it’s only now the government has been prepared to listen," she says. “This is something they need to deal with now especially as the chancellor of exchequer announces a new round of cuts in his autumn statement. We will be looking at answers through research next year by tax experts and we think there are ways round international law.”

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Storm delays lift already strong US auto sales

DETROIT (AP) — Superstorm Sandy gave an extra boost to U.S. auto sales, making November the best month for carmakers in nearly five years.

Toyota, Volkswagen and Chrysler were among the companies posting impressive increases for November, which is normally a lackluster month because of colder weather and holiday distractions. Only General Motors was left struggling to explain yet another month of weak growth.

Industry sales rose 15 percent from a year earlier to 1.1 million, according to AutoData. That was their fastest pace since January 2008. U.S. sales would reach 15.5 million this year if they stayed at November's rate, far higher than the 14.3 million rate in the first 10 months of this year.

Americans are more confident in the economy, a key driver of auto sales. Home values are rising, hiring is up and auto financing remains readily available. And besides just feeling better, people need to replace aging cars or vehicles damaged by Sandy.

"Everything is kind of moving along almost in concert now," says Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry consulting firm.

Sandy added 20,000 to 30,000 sales industry wide last month, mostly from people who planned to buy cars during the October storm but had to delay their purchases, Ford estimates.

People who need to replace storm-damaged vehicles are expected to drive sales for several more months. GM estimates that 50,000 to 100,000 vehicles will eventually need to be replaced.

Even so, carmakers warned that uncertainty over the "fiscal cliff" could undo some of the gains.

The term refers to sharp government spending cuts and tax increases scheduled to start Jan. 1 unless an agreement to cut the budget deficit is reached between Congress and the White House. The cuts and tax increases, if enacted, could push the U.S. economy back into a recession and could derail the industry's recovery.

Alec Gutierrez, a senior market analyst with Kelley Blue Book, said a household making $100,000 per year would pay $160 more per month if the payroll tax goes up 2 percent. That's about the same amount as a lease payment on a compact car. For that reason, Gutierrez suspects some buyers are waiting to see if an agreement is reached before investing in a new vehicle.

But for now, most Americans seem comfortable buying.

At Toyota, sales rose 17 percent in November, partly due to post-Sandy demand. Honda was up 39 percent thanks to strong sales of the new Accord sedan and clearance deals on the outgoing Civic, which was replaced by a new 2013 Civic at the end of the month. Volkswagen's sales rose 29 percent on the strength of the Passat sedan.

But at General Motors, sales rose just 3 percent.

GM's biggest brand, Chevrolet, reported flat sales over last year despite new products like the Spark minicar. Silverado pickup sales fell 10 percent.

GM's sales have been trailing the industry all year. They were up 4 percent through October, compared to the industry-wide increase of 14 percent.

Kurt McNeil, GM's U.S. sales chief, and other GM executives tried to explain the automaker's disappointing performance.

GM said its competitors resorted to higher-than-usual incentives last month to get rid of 2012 model-year trucks. GM, which had more 2013 trucks on its lots, was offering $500 less per truck than the industry average. GM has been trying to hold the line on costly incentives, which can hurt resale value and brand image.

"We want to be known for great products, not great incentives," McNeil said.

But some analysts think GM will be forced to offer more deals in December to clear out inventory.

At Ford, sales were up 6.5 percent on the strength of the F-Series pickup. Ford also saw strong sales of its new C-Max hybrid wagon and of the Ford Focus small car.

Asian brands also got a boost from some unusually big discounts, said Jesse Toprak, senior analyst for automotive pricing site TrueCar.com. TrueCar estimated that Hyundai and Kia, which were admonished by the U.S. government in late October for overstating gas mileage, increased incentive spending by nearly 30 percent. Nissan spending was up 45 percent to $4,273 per vehicle, by far the highest incentives in the industry.

Luxury cars saw their usual year-end surge as holiday commercials started crowding the airwaves. Porsche's sales rose 71 percent to 3,865, a record month for the automaker. Infiniti, Acura, BMW and Lexus all reported big gains.

Edmunds.com analyst Jessica Caldwell said luxury brands have historically targeted their customers at this time of year because of holiday bonuses. That's no longer a driving factor, she said, but it's still a good time of year for people to buy 2012 model-year luxury vehicles because dealers are trying to clear them out.

Gutierrez said about 70 percent of the vehicles on dealer lots are now 2013 models, so buyers should act quickly if they want a deal on a 2012 model.

If industry-wide sales end up at 15 million for the year, it would be a vast improvement over the 10.4 million during the recession in 2009. Sales would still fall short of the recent peak of around 17 million in 2005.

Other automakers reporting sales Monday:

— Chrysler's sales were up 14 percent. Ram pickups were up 23 percent, while sales of the Fiat 500 minicar more than doubled.

— Hyundai's sales rose 8 percent, led by the Sonata midsize car and the Elantra compact. TrueCar said Hyundai increased incentives by 30 percent it was admonished by the U.S. government in late October for overstating gas mileage.

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Boeing separates airplane production, design

(Reuters) - Boeing Co  said on Monday it is creating a new division to oversee airplane development, hiving off that function from production as it seeks to ramp up factory output.

The company named Scott Fancher, who heads Boeing's 777 jet program, to lead the new "airplane development" division, which will handle design and flight certification of planes that are currently on the drawing board. These include the 737 MAX, the 767 Tanker and 787-9, and the 777-X and 787-10X programs that have not yet formally started.

The move comes as Boeing plans to lift factory output by 25 percent over the next 18 months, and tries to develop five derivative jets to meet customer demand for longer-range and more fuel-efficient planes to better compete with Europe's Airbus .

Analysts called the division sensible given the unusually large number of new planes in development and the unusually rapid pace of Boeing's factories - "the highest levels in commercial aviation history," as Boeing put it.

"Successfully balancing our production and development priorities is critical to our future viability and success with customers," Ray Conner, chief of Boeing's commercial airplane business, said in a message to Boeing employees on Monday.

The changes, effective immediately, "will help clarify responsibility, streamline decision-making and accelerate our progress on these priorities," Conner said.

The new structure creates an "airlines programs" unit headed by Pat Shanahan, a senior vice president currently in charge of production. The division will be responsible for the profit and loss of the jet programs in production, and integrating development of new jets into production.

The division of labor "puts a specific leader in charge of future development," said Boeing spokesman Marc Birtel, and allows Shanahan to focus on production.

Boeing's commercial aviation services unit, which provides support for jets in service, will continue to be led by Lou Mancini, a senior vice president.

Analysts said Boeing needs to optimize both sides of the airplane business, but it was unclear how the development side would be handled. "The production ramp is not insignificant" particularly on the 777, said Russell Solomon, an analyst at Moody's Investors Service in New York. For such a "hugely important and profitable program you don't want to have a misstep."

Developing five new planes, including substantial redesign of the 777, is a tall order. "Organizationally, it makes sense to have someone who's in charge of all of that," said Scott Hamilton, analyst at Leeham Co in Seattle.

"The only real risk is will he be stretched too thin," he said. "We have to see how Fancher organizes his new responsibility."

Boeing shares ended down 0.35 percent at $74.02 Monday on the New York Stock Exchange.

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China's Huaxia may face liability for troubled wealth product sale

BEIJING (Reuters) - China's Huaxia Bank Co Ltd <600015.SS> may face some liability after a rogue employee sold unauthorized wealth management products which weekend reports claimed had stopped making payments, a bank official said on Tuesday.

An employee at Huaxia's Jiading branch, in a Shanghai suburb, sold the instruments issued by the Zhongding Wealth Investment Center without permission, and a police investigation is underway, the bank said on Monday.

A spokesman for the bank's Shanghai operations told Reuters that police investigators may assign some liability to the bank.

"Currently, investors think Huaxia Bank must take the responsibility and no matter what we argue, they won't listen to us. So we must let the police and judiciary decide the different responsibilities of all parties involved in this case," Huaxia's Shanghai division spokesman told Reuters.

"But it cannot be understood that the bank will pay for the default."

Huaxia has said it was "aware" of reports that the investments could not be repaid when the product matured, but has not confirmed those reports.

So far, there has not been a high-profile case of default by a Chinese wealth management product, many of which are marketed by banks and highly sought by retail depositors for their higher interest rates. Banks' liability for the performance of third-party instruments is therefore untested.

"We will take the responsibility that we should take, but there are some legal procedures to follow," Huaxia Bank's Shanghai division head Zheng Chao told investors assembled at door of his offices, according to the Securities Times on Tuesday.

Bankers and analysts worry that the proliferation of wealth management products, which promise higher interest rates than savings accounts, poses a danger to the Chinese banking system because of their opacity, and the risk that banks may have to cover any default.

"SHADOW BANKING"

Many of the products essentially channel money to the so-called shadow banking system, where they help fund real estate and other projects at very high interest rates.

Chinese investment bank CICC warned in an analyst report on Tuesday of the long-term reputational damage to Huaxia if its depositors lose money, although it acknowledged the Zhongding products were sold without principal or interest guaranteed.

CICC estimated the amount sold through the Jiading branch at 20 million yuan ($3.21 million), citing Chinese media reports. Even if Huaxia had handled all the full 160 million yuan raised by Zhongding, that would equal only about 1 percent of the bank's annual pre-tax profit, CICC said.

"Huaxia should take responsibility for lack of internal controls," CICC wrote. "Short-term pain is better than long-term pain."

Huaxia has not commented on how many depositors bought the products, the amount of money involved, nor what its exposure might be.

Investors' suspicions were raised when one of the wealth management products issued by the Zhongding Wealth Investment Center failed to pay out as scheduled on November 26, the Securities Times said. It said all four products issued by Zhongding have failed to make payments.

Zhongding wanted to raise up to 200 million yuan to invest in a pawn broking operation and an Audi sales company among other projects in Henan, and promised investors annual interest of 11-13 percent, according to its prospectus.

The company that guaranteed the product told Reuters on Monday that it would not honor that guarantee, claiming the documents provided by Zhongding were incorrect.

Huaxia's Shanghai-listed shares traded down 0.2 percent early on Tuesday, compared with a 0.4 percent fall in the broader market <.SSEC>. ($1 = 6.2279 Chinese yuan)

(Reporting By Aileen Wang and Lucy Hornby, additional reporting by Hui Li; Editing by Daniel

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Supreme Court lets GM workers pursue case against State Street

WASHINGTON (Reuters) - The Supreme Court is allowing General Motors Co  employees whose pension plans lost money to pursue their case against a State Street Corp  unit over its management of their retirement savings plans before the automaker went bankrupt.

Without comment, the court refused on Monday to review the case and let stand a February ruling from a lower court that allowed the workers to sue State Street Bank and Trust Co.

The 2009 lawsuit said the bank should have acted faster to sell a 401(k) investment fund's shares in GM stock after the automaker's business troubles came to light.

GM filed for Chapter 11 protection from creditors in June 2009, two months after State Street began to sell the GM shares.

But the employees said the selling should have started by mid-2008, when GM's bleak outlook had become obvious. They accused State Street of violating its duties under the federal Employee Retirement Income Security Act of 1974.

State Street said ERISA had shielded it from liability since it did not cause the losses and the employees themselves had decided to invest in the GM fund.

A district court in Michigan agreed, but the 6th U.S. Circuit Court of Appeals revived the case in February.

"State Street had a fiduciary duty to select and maintain only prudent investment options in the plans," even if employees chose which investments to make, Circuit Judge Thomas Anderson wrote for the 6th Circuit panel.

GM emerged from bankruptcy in July 2009.

In their appeal to the Supreme Court, lawyers for State Street said the ruling had added to a split among federal courts of appeal over whether plan managers are liable for investment decisions made by employees.

State Street, in an emailed statement, said it was disappointed the court refused to hear the case, but that the company would continue to defend itself in the litigation.

The lawsuit is one of numerous "stock drop" class actions arising out of the 2008 financial crisis.

In October, the high court refused to review a pair of similar cases against Citigroup Inc and McGraw-Hill Cos by thousands of employees who invested in those companies' stocks through their retirement plans.

These workers said problems with subprime mortgage exposure at Citigroup and with the Standard & Poor's rating agency unit of McGraw-Hill made investments in the companies' stocks inappropriate.

The case is State Street Bank and Trust Co v. Pfeil et al, U.S. Supreme Court, No. 12-256.

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Auto sales race to five-year high for November

(Reuters) - Auto sales in November raced to a five-year high for that month on a rebound from storm-ravaged October and the need to replace aging vehicles, leaving industry executives optimistic about 2013.

Sales in November rose 15 percent to 1.14 million vehicles, the highest level for that month since 2007, before a recession caused a dramatic decline in demand and led to the bankruptcy filings of General Motors Co and Chrysler.

"Vehicle sales are one of the encouraging spots of our economy," said Gary Bradshaw, portfolio manager with Hodges Capital Management in Dallas.

Ford Motor Co , Honda Motor Co <7267.T> and Nissan Motor Co <7201.T> posted better-than-expected sales, while Chrysler Group LLC, Toyota Motor Corp <7203.T> and Hyundai Motor Co <005380.KS> also reported strong increases that industry executives and investors said should continue through the end of the year.

However, sales for GM came in short of expectations. The No. 1 U.S. automaker said it benefited less than its rivals from the November recovery after Superstorm Sandy hit the U.S. Northeast as a smaller share of GM's sales come from that region. It also relied less on incentives.

Auto sales are an early indicator each month of U.S. consumer demand, and the improving housing market and rising consumer confidence have industry executives optimistic heading into 2013.

"Looking at the national picture, the apparent recovery in housing that we talked about last month and the encouraging new data on consumer sentiment and confidence are all positive factors," Kurt McNeil, GM's vice president of U.S. sales operations, said on a conference call.

He declined, however, to provide a 2013 industry sales forecast until a deal is reached to avoid the so-called fiscal cliff, a combination of federal spending cuts and steep tax increases that could tip the U.S. economy back into recession.

"Exactly how much growth we can expect next year will depend in part on how Congress and the president resolve the fiscal cliff issue," McNeil added. "Consumers hate the uncertainty, so an agreement on ways to reduce long-term federal budget deficits could remove an impediment to growth."

POST-SANDY SALES

The 15 percent sales gain in November easily surpassed the gain of 11 to 13 percent most analysts had expected. The annual sales rate in November of 15.54 million was the industry's strongest for any month since the 15.55 million rate of February 2008.

Superstorm Sandy hurt the last few days of sales in October, which finished below expectations, but many consumers simply shifted their purchases to November. In addition, the average age of cars on the road has risen to just above 11 years, and industry officials say that will continue to drive demand.

McNeil said the auto industry is clearly heading this year toward the high end of GM's forecasted range of 14 million to 14.5 million. Many analysts expect the industry to finish 2012 with 14.4 million sales, which would mark the strongest year since the 16.1 million of 2007.

TrueCar.com analyst Jesse Toprak expects U.S. auto sales to rise to 15.4 million next year. "Stable growth is really the motto of the industry."

STEADY RECOVERY

Jonathan Browning, CEO of Volkswagen Group of America, sees a continuation of a steady recovery for the economy as well as for U.S. December and early 2013 auto sales, but expressed concern about the negative impact on consumer confidence if the fiscal cliff occurs. VW brand sales rose more than 29 percent in November.

Ken Czubay, Ford's vice president of U.S. sales, agreed, saying "the clock is kind of ticking," in reference to the Washington talks on avoiding the fiscal cliff.

Ford's November sales rose 6.5 percent to 177,673 vehicles, better than even some of the most optimistic forecasts for the No. 2 U.S. automaker. In a more positive sign for consumer demand, Ford's retail sales rose 12 percent.

The company had its strongest small-car sales for the month in 12 years. Demand for Ford's popular F-150 full-size pickup truck increased 17 percent, while GM's Chevrolet Silverado pickup saw sales drop 10 percent.

GM, with 139 days' worth of Silverado inventory at the end of November, blamed aggressive incentives by Chrysler, Nissan and Ford for the decline, and said it would focus on curtailing production of trucks rather than risk becoming trapped in a price war.

GM, with 96 days' worth of Cruze small cars in inventory at the end of November, plans to idle the Lordstown, Ohio, plant where the car is built for two weeks in December instead of the planned one week to reduce supplies, said two people with knowledge of the plans who asked not to be identified. A spokesman did not confirm the plans.

Ford's shares closed down 0.3 percent at $11.41, while GM shares fell 1.4 percent to $25.51 on the New York Stock Exchange on Monday.

Ford said it planned to build 750,000 vehicles in North America in the first quarter of 2013, which would be an 11 percent increase from 2012. That would be the highest first-quarter production level since 2006.

GM's sales rose 3 percent to 186,505 cars and trucks, below the expectations of several analysts. The company said the average price paid per vehicle rose $750 from last year.

TrueCar estimated that the industry's average vehicle selling price in November rose 1.1 percent, or $335, from last year, and rose a similar amount from October to $30,832.

Chrysler, majority-owned by Fiat SpA , said sales rose 14 percent to 122,565 cars and trucks, its strongest result since 2007.

Toyota's sales rose more than 17 percent to 161,695 vehicles. Honda and Nissan both reported better-than-expected results, with the former jumping about 39 percent and the latter increasing 13 percent.

Hyundai said sales increased 8 percent to the company's all-time high for the month. November marked the first sales results since the South Korean automaker and its Kia Motors Corp <000270.KS> affiliate announced they had overstated the fuel economy ratings by at least a mile per gallon on more than 1 million recently sold vehicles.

In the battle for the luxury sales title for the U.S. market, Daimler's Mercedes brand leads last year's winner, BMW , by fewer than 2,000 vehicles with one month to go.

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