Sony Raises Estimate for Year
on Demand for TVs, Game Consoles
Bloomberg News reports that television maker Sony Corp. "raised its full-year earnings forecasts after sales of TVs and game consoles helped the company to an unexpected profit last quarter. " The company said it expects net income of $688 million, or 60 billion yen, for the year ending March 2011, compared to its earlier estimate of 50 billion yen. Bloomberg News added that CEO Howard Stringer "has started to focus on new products as the global economic recovery revives consumer demand. The maker of Bravia TVs in May unveiled the prototype of a set that will deliver video and music over the Internet in partnership with Google Inc. and started selling 3-D TVs in the US, Europe and Japan last month."
http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aKWH.h7tnroI

Navistar's Fort Wayne Future Still in Doubt
Inside INdiana Business - Fort Wayne's efforts to keep Navistar International Corp.'s truck design and technology center in the city appear to be in jeopardy. The Fort Wayne Journal Gazette is reporting the company has resumed serious talks with officials in Lisle, Illinois to consolidate operations in the Chicago suburb. Navistar Vice President and Chief Information Officer Don Sharp tells the paper the primary focus is Lisle and hopes a deal will be signed, or the community officially ruled out, within the next month.
http://www.insideindianabusiness.com/newsitem.asp?id=42870

Hill-Rom Sees Income Growth in Q3
Inside INdiana Business - Batesville-based Hill-Rom Holdings Inc. (NYSE: HRC) is reporting net income of $31 million for its fiscal third quarter, an increase from $20 million in the same period last year. Total revenue during the quarter was $361 million, up 8 percent from the third quarter of 2009. The company is also raising its earnings guidance.
http://www.insideindianabusiness.com/newsitem.asp?id=42868

Caterpillar Considering Winston-Salem for New Plant
WGHP - WINSTON-SALEM, N.C. - Caterpillar Inc. confirmed on Wednesday that Winston-Salem is one of three cities being considered for a "significant component manufacturing facility. Winston-Salem is being considered along with Montgomery, Alabama and Spartanburg, South Carolina, according to a company spokesperson. Jim Dugan, a spokesperson for Caterpillar, said a project team had been evaluating locations in nine states across the southeast and the final evaluation is expected to continue throughout the summer. A decision is expected by August.
http://www.myfox8.com/news/wghp-story-caterpillar-100625,0,7964317.story

'Delphi Isn't Closing Anything' in
Kokomo, Company Spokeswoman Says
Kokomo Tribune - KOKOMO — Delphi Automotive Systems LLC says it will not close any of its operations in Kokomo. “Delphi has no announcements, Delphi isn’t closing anything,” said company spokeswoman Linda Ferries. Ferries was responding to reports posted this afternoon on Inside INdiana Business’ website. She said the reported information is incorrect. The Indianapolis-based news agency quoted United Auto Workers Region 3 Director Maurice Davison as saying Delphi will phase out its Kokomo operations in 2012. Davison told Inside INdiana that General Motors would no longer use Delphi as a supplier. Davison did not immediately return a phone call seeking comment. GM spokesman Kevin Nadrowski said the company gave its employees a business update earlier today, but he would not elaborate. “We’re not making any announcements, and there are no immediate changes to operation,” he said. Jeb Conrad, president and CEO of the Greater Kokomo Economic Development Alliance, said the Alliance would have been one of the first government organizations to hear about Delphi closing its Kokomo operations, but he had heard nothing to that extent.
http://www.indianaeconomicdigest.net/main.asp?SectionID=31&SubSectionID=64&ArticleID=55387

Some Can Immediately Apply for Unemployment Extensions
Inside INdiana Business - Some Indiana residents eligible for unemployment insurance extensions can start applying immediately. The Indiana Department of Workforce Development says it has started posting vouchers for eligible Hoosiers. The department says computer programming required less time than anticipated so some will not have to wait until August 3 to apply.
http://www.insideindianabusiness.com/newsitem.asp?ID=42863

F136 Fighter Engine Wins U.S. House Vote,
Could Mean More Work for Indiana Plants
Tribune Star - TERRE HAUTE — Terre Haute won a small victory in Washington on Tuesday when a congressional subcommittee voted to keep funding a military jet engine partially made by a local company. The House Defense Appropriations subcommittee voted 11-5 to spend $450 million in the next U.S. defense budget on the F136 fighter engine, parts for which are made at Unison Engine Components, a high-tech manufacturing business on South Third Street. The F136, which is a joint project for General Electric and Rolls-Royce, is an “alternative” engine for the military’s new F-35 Joint Strike Fighter. The main engine for the fighter is called the F135 and is made by Pratt & Whitney. The House committee vote was “definitely one more step forward toward solidifying what a lot of us think should be a done deal by now,” said Rod Henry, president of the Terre Haute Chamber of Commerce. The F136 “is good for Unison. It’s good for GE and it’s good for Terre Haute,” he said. Continued funding for the F136 could mean up to 200 new jobs and millions of dollars in new investment at Unison, Terre Haute economic development officials have stated. Funding would also benefit Rolls-Royce in Indianapolis.
http://www.indianaeconomicdigest.com/main.asp?SectionID=31&SubSectionID=135&ArticleID=55391&TM=31137.61

Carbon Motors Behind Schedule, Still Waiting for Loan
Inside INdiana Business - Today marks one year since police car maker Carbon Motors Corp. chose the Fayette County city of Connersville for its production headquarters and bringing with it the potential of more than 1,500 jobs. Chairman and Chief Executive Officer William Santana Li tells our partners at Kicks 96 the company isn't as far along in development as it hoped to be at this point.
http://www.insideindianabusiness.com/newsitem.asp?ID=42871

Franklin Manufacturer to Build Plant in Tennessee
Associated Press - Tennessee's industrial development agency says Indiana-based NHK Seating of America Inc., will build a plant that will create up to 224 jobs in Murfreesboro by 2015. A Wednesday statement from the state Department of Economic and Community Development says construction of the $54 million auto parts plant will start in October near the intersection of Interstate 24 and Joe B. Jackson Parkway. The plant is expected to employ up to 224 workers when all phases of production are operating in 2015. NHK Seating of America is headquartered in Franklin, and has been making automotive parts in the United States since 1987. The Murfreesboro plant will initially make auto seat frames, but company executives said they hope to expand the product line.
http://www.ibj.com/franklin-manufacturer-to-build-plant-in-tennessee/PARAMS/article/21368 

Foreclosure Activity Up Across Most U.S. Metro Areas
Associated Press - LOS ANGELES - Households across a majority of large U.S. cities received more foreclosure warnings in the first six months of this year than in the first half of 2009, new data shows. The trend is the latest sign that the nation's foreclosure crisis is worsening as homeowners battling high unemployment, slow job growth and an uneven rebound in home prices continue to fall behind on their mortgage payments. In all, 154 out of 206 metropolitan areas with at least 200,000 residents posted an annual increase in foreclosure activity between January and June, foreclosure listing firm RealtyTrac Inc. said Thursday. The firm tracks notices for defaults, scheduled home auctions and home repossessions - warnings that can lead up to a home eventually being lost to foreclosure. The latest figures show the threat of foreclosures is spreading well beyond the top tier of metropolitan areas located in California, Florida, Nevada and Arizona, which have borne the brunt of the fallout from the housing crisis. Those states saw housing values surge during the housing boom years. When the boom ended, values collapsed and foreclosures soared.
http://hosted.ap.org/dynamic/stories/U/US_FORECLOSURE_RATES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
&CTIME=2010-07-29-03-29-14

Arizona Preparing Appeal of Immigration Ruling
Associated Press - PHOENIX – Arizona is preparing to ask an appeals court to lift a judge's ruling that put most of the state's immigration law on hold in a key first-round victory for the federal government in a fight that may go to the U.S. Supreme Court. Gov. Jan Brewer called Wednesday's decision by U.S. District Judge Susan Bolton "a bump in the road" and vowed to appeal. Paul Senseman, a spokesman for Brewer, said Arizona would ask the 9th U.S. Circuit Court of Appeals in San Francisco later Thursday to lift Bolton's preliminary injunction and to expedite its consideration of the state's appeal. Bolton indicated the government has a good chance at succeeding in its argument that federal immigration law trumps state law. But the key sponsor of Arizona's law, Republican Rep. Russell Pearce, said the judge was wrong and predicted the state would ultimately win the case. Opponents of the law said the ruling sends a strong message to other states hoping to replicate the law.
http://news.yahoo.com/s/ap/20100729/ap_on_re_us/us_arizona_immigration;_ylt=ArPUIrNHjH_vIpbeWnjOXMW
s0NUE;_ylu=X3oDMTNtNWF1b3JqBGFzc2V0A2FwLzIwMTAwNzI5L3VzX2FyaXpvbmFfaW1taWdyYXRpb24EY2NvZG
UDbW9zdHBvcHVsYXIEY3BvcwMxBHBvcwMyBHB0A2hvbWVfY29rZQRzZWMDeW5fdG9wX3N0b3J5BHNsawNhcml6b25hcHJlcGE-

Regulators to Meet over New Consumer Bureau
Reuters - WASHINGTON – Treasury Secretary Timothy Geithner will convene a meeting Thursday with the top financial regulators to begin launching the Consumer Financial Protection Bureau. The new bureau was created by the financial regulatory overhaul legislation that President Barack Obama signed into law last week. It will regulate consumer financial products ranging from credit cards to mortgages. "The meeting will serve to formally begin an ongoing process of interagency collaboration around the stand-up of the bureau, including discussions regarding the consolidation of regulatory responsibilities and staff to improve coordination and efficiency in consumer protection," the Treasury Department said in a statement. The meeting is expected to be attended by Federal Reserve Chairman Ben Bernanke and Fed Governor Elizabeth Duke, along with the heads of the Federal Deposit Insurance Corp, Federal Trade Commission, Comptroller of the Currency, Office of Thrift Supervision and National Credit Union Administration.
http://news.yahoo.com/s/nm/20100729/pl_nm/us_financial_regulation_consumer

Republicans Focus on Tax Cuts for Recess
The Hill - House Republican leaders largely avoid mentioning former President George W. Bush in their August recess package to GOP members. Instead of calling for an extension of Bush’s tax cuts, which House Republican leaders support, they refer to the looming “Democrats’ tax hikes.” Under the heading “Job Creation,” Republicans call the expiring tax cuts, set to lapse at the end of this year, a Democratic plan “on increasing taxes by $3.8 trillion.” The scarce references to Bush come as Democrats attempt to tie the Republican Party to the 43rd president three months before the midterm elections. The only mention of the ex-president occurs when House Republicans compare his record to President Obama’s. And the message they express is essentially that Bush’s record on spending was bad, but Obama’s is much worse. The document, provided to The Hill, states, “Since taking office, President Obama has spent more than $6.1 trillion in 18 months. At $333 billion per month, that is more than twice the amount spent during the first two years of the George W. Bush administration.”
http://thehill.com/homenews/house/111559-gop-focus-on-tax-cuts-for-recess

When the Tax Hikes Are Coming
U.S. News and World Report - If you love class warfare, your moment has arrived. The next several weeks, leading up to the November elections, are sure to be filled with resounding political invective over who should pay for Washington's profligate spending over the last decade. Democrats will argue that the rich and near-rich should pony up, since they have the most money to start with. Republicans will point to the needy, arguing that they've been getting too much aid for too long. Tea Partiers will struggle to decide whose benefits should be cut in order to achieve the smaller government they envision. All around, livelihoods will be threatened. Instead of the "silly season," the midterm elections will feel like the angry season. It sounds very entertaining. But if you'd rather stick your fingers in your ears until November 3, feel free: For all the shouting that's on the way, it's not hard to predict what's going to happen. Tax policy over the last 20 years has swung left and right based on the ideology of the governing party. But America can no longer afford the luxury of a manic tax code driven by what the party in power thinks is fair. Instead, simple math is now taking over. Revenue from individual income taxes, for example, was relatively stable between 1970 and 2000, ranging from about 8 to 10 percent of GDP, according to the Congressional Budget Office. After the Bush tax cuts of 2001 and 2003, that figure fell to a record low of about 7 percent. The late, great recession drove it even lower.
http://news.yahoo.com/s/usnews/20100728/ts_usnews/whenthetaxhikesarecoming

Obama to Defend Education Policies to Critics
Associated Press - WASHINGTON – President Barack Obama is defending his administration's education policies, responding to criticism that so far they have not substantially helped minority students. The president blames some of the criticism of his plan on teachers and others resistant to change. Obama was to speak Thursday at the centennial convention of the National Urban League, one of eight civil rights organizations that released a report this week calling the president's $4.35 billion education initiative an ineffective approach for failing schools. In excerpts released ahead of the president's speech, Obama says his program's goal is to spur innovate education reform in states and turn around failing schools, many in minority communities, not just label them as troubled and then walk away. "It's about investing in that school's future, recruiting the whole community to help turn it around, and identifying some viable options for how to move forward," Obama says. The National Urban League report, written in conjunction with seven other civil rights groups, says federal data shows that just 3 percent of the nation's black students and less than 1 percent of Latino students are affected by the first round of the administration's "Race to the Top" competition.
http://news.yahoo.com/s/ap/20100729/ap_on_go_pr_wh/us_obama_education

Europe's Economic Confidence Soars
AFP - BRUSSELS – A surge in confidence in Europe's economy fuelled hope Thursday that the region is finally overcoming its financial troubles just days after European banks largely survived a crash test. The Economic Sentiment Indicator produced by the European Commission soared in July to its highest level in more than two years, driven by eurozone powerhouse Germany, improved order books and optimism among consumers. "July's sharper-than-expected increase in economic sentiment will further allay fears of a near-term double dip recession in the Eurozone and may give fresh support to the euro," Dutch banking group ING said in a note. The European Commission said sentiment in industry was the "main contributor to the overall improvement," with an increase of two points as respondents in the sector reported "substantial improvements in their order books." Consumer confidence "regained momentum" with a 3.0-point jump in the euro area, the European Union's executive arm said.
http://news.yahoo.com/s/afp/20100729/bs_afp/eueurozonefinanceeconomy_20100729115137

China Urges Change in U.S. Policy to Avoid Friction
Reuters - BEIJING – The United States should alter policy to take account of China's role as a major player on the world stage if it wants to avoid friction and instability, a major state newspaper said on Thursday. The commentary in ruling Communist Party mouthpiece the People's Daily followed the latest spat in Sino-U.S. ties, over what China views as unwarranted U.S. interference in a territorial dispute in the South China Sea. While senior officials, including U.S. President Barack Obama, say they welcome a prosperous, flourishing China, good words must be backed up by actions, the newspaper said. "If the United States cannot find a way of recognizing and accepting China's entrance on the world stage as a big player, relations will swerve up and down like a roller coaster," it said. "This instability in relations will have a negative effect not only on bilateral ties but on the world, and that is not something anyone wants to see." Obama started out well, it said, with his visit to China last year, but arguments over U.S. arms sales to Taiwan, Google Inc. and the value of the Chinese currency showed nothing has really changed in the United States.
http://news.yahoo.com/s/nm/20100729/pl_nm/us_china_usa_commentary 

China Denies Forcing Firms to Transfer Technology
AFP - BEIJING – China on Thursday denied US charges that it unfairly forces foreign firms to transfer technology as the price of admission to its huge market, saying its policies were in line with world trade rules. "Countries around the world have taken a lot of measures to encourage technology innovation," a commerce ministry official, who declined to be named, told AFP. "The Chinese policies are in line with relevant WTO rules." The comments were in response to a US Chamber of Commerce report this week that accused China of abusing the allure of its vast market to push foreign companies to transfer their latest technologies to Chinese competitors. This was a "blueprint for technology theft on a scale the world has never seen before", it said. The chamber's report is the latest in a chorus of complaints by foreign businesses and governments over perceived unfair policies and market restrictions in the world's third-largest economy.
http://news.yahoo.com/s/afp/20100729/bs_wl_afp/chinaustradebusinesstechnology_20100729040401

IMA Offers On-Site Primary Care Clinic Services to Members

Novia CareClinics implement and manage on-site primary care clinics for employers with approximately 200 - 5,000 full-time employees. In addition to handling acute and chronic medical conditions, Novia's best-in-class clinics include a special focus on disease prevention and wellness as a means of enhancing quality of life, increasing productivity and positively impacting health care costs over the long term. Novia's clinics are staffed by primary care physicians recruited from employers' local communities. Novia CareClinics provide free pro forma evaluations to determine if implementing an on-site clinic would be cost effective. Novia guarantees its fee structure for up to three years for all IMA members. For more information, contact Dave Hooper, Novia CareClinics Business Development at Nccsales1@aol.com or 317-414-6684. You may also visit the IMA website's Novia CareClinics page for more information.

Initial Jobless Claims Drop to 457,000
Associated Press - WASHINGTON - New jobless claims fell last week for the third time in four weeks but remain elevated. The Labor Department said Thursday that first-time claims for unemployment insurance dropped by 11,000 to a seasonally adjusted 457,000. Claims have fluctuated this month because of temporary seasonal factors. General Motors and other manufacturers skipped their traditional summer shutdowns, which led to fewer layoffs and unemployment claims. But the impact of that distortion has largely faded from the data, a Labor Department analyst said. The four-week average of claims, which smooths fluctuations, dropped to 452,500, the lowest level since May. That suggests layoffs may be easing. Still, claims at that level indicate the job market is still weak and employers are reluctant to hire.
http://hosted.ap.org/dynamic/stories/U/US_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME
=2010-07-29-08-48-15

Corporations Report Strong Earnings, but Unlikely to Help Jobs
The Hill - A strong corporate-earnings season is dimming worries of a double-dip recession, but is unlikely to lead to a swing in employment that will help Democrats this fall. Dozens of corporations, including Dupont, FedEx, Apple and IBM, have reported earnings that exceeded expectations for the second quarter, boosting confidence in the U.S. economy. The problem for both the economy and Democrats headed into an election where jobs will be the No. 1 issue is that, so far, corporate America is not reinvesting those profits into its businesses and workers. The 9.5 percent unemployment rate is expected to rise a week from Friday when the Labor Department releases its July report on job figures. An estimated $2 trillion has been stockpiled by corporate executive officers, who so far are holding onto that cash out of fear the economy will enter a double-dip recession. Companies are still focused more on reducing debts than hiring new workers or expanding their businesses, said Frederick Cannon, an analyst with Keefe, Bruyette & Woods. “I think it’s reflective of a low-inflation, show-growth environment where people feel there’s not a lot of confidence incomes will grow,” he said.
http://thehill.com/homenews/administration/111551-corporations-report-strong-earnings-but-unlikely-to-help-
unemployment

AP Survey: A Bleaker Outlook for Economy into 2011
Associated Press - WASHINGTON - The U.S. economic recovery will remain slow deep into next year, held back by shoppers reluctant to spend and employers hesitant to hire, according to an Associated Press survey of leading economists. The latest quarterly AP Economy Survey shows economists have turned gloomier in the past three months. They foresee weaker growth and higher unemployment than they did before. As a result, the economists think the Federal Reserve will keep interest rates near zero until at least next spring. Yet despite their expectation of slower growth, a majority of the 42 economists surveyed believe the recovery remains on track, raising hopes that the economy can avoid falling back into a "double-dip" recession.
http://hosted.ap.org/dynamic/stories/U/US_AP_ECONOMY_SURVEY?SITE=AP&SECTION=HOME&TEMPLATE=
DEFAULT&CTIME=2010-07-29-07-05-01

Fed's Beige Book Shows "Uneven" Growth Across Regions
The New York Times is among media outlets reporting that Wednesday's release of the Fed's beige book showed "growth has become uneven in recent weeks," and "in some regions...economic activity had started to slow." The report "described an economy struggling under the weight of a depressed real estate market, high unemployment and wary consumers," with manufacturing "especially...losing steam." Manufacturing "in most of the 12 districts experienced some growth since the last report in early June," but "it stayed level or slowed in some regions." Retailing, transportation services, and food were among strong sectors. In Atlanta, however, there are "significant worries...related to the Gulf Coast oil spill."
http://www.nytimes.com/2010/07/29/business/economy/29econ.html?_r=2&ref=business

Economy at a Glance

Durable Goods Orders Decline
in June; Capital Goods Outlays Increase
The Associated Press reports the Commerce Department said Wednesday that June factory orders for durable goods declined with less demand for commercial aircraft, but capital goods outlays increased again, "a sign that manufacturing continues to help keep the economic recovery afloat." Durable goods orders "dropped 1 percent...to a seasonally adjusted $190.5 billion," the second consecutive monthly decline "and the largest drop since August 2009." The AP adds, "Manufacturing has helped drive growth during the early stages of the recovery. A slowdown in orders could be a sign that the recovery is losing strength."
http://www.chicagotribune.com/business/sns-ap-us-durable-goods,0,4452103.story

House Approves Legislation to Boost Manufacturing
Under the headline "House Passes Bills To Boost US Manufacturing," Dow Jones Newswires reports that the bill was part of the larger "Make it in America" agenda from House Democrats. One of the bills, the National Manufacturing Strategy Act, would require the President to submit a four-year national manufacturing strategy policy plan to Congress. Sponsor Daniel Lipinski (D, IL) said, "After 110 years as the world's top manufacturing country, the United States is about to lose that perch to China. ... But American manufacturing job loss is not inevitable and I do not accept the notion that there's nothing we can do." The bill passed 379 to 38. While they supported it, some Republicans said it didn't do enough. Ed Whitfield (R, KY) said, "Creating another commission, another strategy, another report falls far short of a solution."
http://online.wsj.com/article/BT-CO-20100728-720641.html

Panasonic Buying Sanyo and Other Unit for $9.4 Billion
Reuters - TOKYO – Japan's Panasonic Corp (6752.T) said it would buy out subsidiaries Sanyo Electric (6764.T) and Panasonic Electric Works (6991.T) for up to $9.4 billion in cash and shares to accelerate its push into greener businesses. The company, a sprawling conglomerate whose products range from flat-screen TVs to medical equipment, said it would raise up to 500 billion yen ($5.7 billion) in a new share issue to bolster its finances after completing the buyouts. News of its plans, which were first reported by Reuters, triggered a 26 percent rally in Sanyo shares while pushing down Panasonic nearly 8 percent to a 16-month low, wiping out about $2.5 billion of its market value in unusually heavy trade. Under President Fumio Ohtsubo, Panasonic has been shifting away from low-margin home electronics products and investing more aggressively in solar cells, batteries and other energy-related areas which offer promising growth prospects.
http://news.yahoo.com/s/nm/20100729/bs_nm/us_sanyo_panasonic

Insurers Back Down on Child-Coverage Stance
The Hill - Health insurance plans across the country on Wednesday began to backtrack on their decision to pull out of the child-only coverage market after the Obama administration addressed their concerns about the potential damage to their bottom lines. The Department of Health and Human Services (HHS) on Tuesday clarified regulations mandating that insurance plans agree to cover sick children. HHS made it clear that plans are free to set up specific enrollment periods for their insurance plans if allowed under state laws. The new rules apply to plans in the individual and group markets from Sept. 23. Health plans had raised concerns that without the enrollment periods, parents could wait until their children get sick before seeking coverage, making it impossible for insurers to stay profitable. The insurance industry quickly applauded the new guidance. And at least one insurer, Blue Cross Blue Shield of Florida, announced it was “pleased to announce that it will establish a process to resume the sale of Child Only policies.”
http://thehill.com/business-a-lobbying/111535-insurers-backing-down-on-child-coverage-stance

Obama Administration Issues High-Risk Pool Regulations
The Hill - The Obama administration this morning issued regulations for the creation of state high-risk insurance pools called for in the healthcare reform law. The 108-page document has just been posted on the Web site of the Office of the Federal Register.
http://thehill.com/blogs/healthwatch/health-reform-implementation/111585-obama-administration-issues-high-risk
-pool-regulations

IMA Training Courses
Listed below are upcoming IMA training courses. Registration is available online at
www.imaweb.com or by clicking any of the links below.

Indiana Manufacturers Association
One American Square, Suite 2400, P. O. Box 82012; Indianapolis, IN 46282
Phone: 317-632-2474; Fax: 317-231-2320; Website: www.imaweb.com