Major U.S. car companies may become bankrupt. They did not manage to get help from the U.S. government.

Shares of General Motors tumbled more than 35 percent to hit a 70-year low on Thursday as prospects dimmed that lawmakers would reach a compromise on a proposed $25 billion bailout for U.S. automakers before Congress adjourns this week. In this minute shares of GM up 30 cents to $ 2.08. The fall dropped from 35% to 26%.

Shares of Ford fell 7 cents to $ 1.19 (-6 %).

Over the past 2 quarters of Ford lost $ 8.8 billion, for the year - $ 11.5 billion. Loss GM over the past year amounted to $ 23.1 billion.

Harvard University number 1 in USA

It’s the first time since 1996 that the Cambridge, Mass., university is alone at the top of the National Universities category. Princeton and Yale come in second and third, respectively, while Amherst College and Williams College share the No. 1 spot on the Liberal Arts Colleges list.

This year, Harvard managed to beat perennial No. 1 Princeton by one 10th of a point in the reputation survey the magazine sends out to college administrators across the country, in addition to making slight improvements in some of the other statistical measures. Harvard, which has a nearly $35 billion endowment, made big news last December when it announced that it would increase the financial packages it offers to students from families that earn $180,000 or less. The move was a dramatic leap beyond the $60,000 threshold that other highly selective universities had been using to determine which students were eligible for the most generous assistance packages. In another PR boost for the nation’s oldest university, last school year was also Harvard’s first under the guidance of President Drew Gilpin Faust. Her predecessor, Lawrence Summers, left after making controversial remarks about women in the science disciplines.

The reputation survey that U.S. News sends to top college officials at each school counts for 25 percent of a college’s ranking. The other 75 percent is based on quantitative data that assesses a college’s performance in areas such as graduation and retention rates, faculty resources, financial resources, student selectivity, and alumni giving. Each year, the formula is reassessed to stay on top of recent developments in higher education. For example, just as Harvard and dozens of other colleges recently have made adjustments to become more accessible to families of lesser financial means, U.S. News has incorporated data about the proportion of low-income students a school enrolls into its ranking measurements.

These periodic methodology adjustments make flat year-to-year comparisons of a school’s U.S. News ranking somewhat misleading. Nevertheless, alumni always tend to take note of which schools have gained an edge on their academic rivals. For example, in the National Universities list this year, the Massachusetts Institute of Technology finished in fourth place, besting its West Coast rival, the California Institute of Technology, which landed in sixth place. Last year, Caltech held the edge with a fifth place ranking while MIT placed seventh. Part of the difference: MIT improved its faculty resources statistics slightly, while Caltech dipped there a little. (As in Olympic swimming, slightly better performance makes a big difference in results at this level of rankings.)

Over on the Liberal Arts Colleges list, this year the United States Military Academy was ranked 14th, besting its rival, the United States Naval Academy, which held the 22nd slot. Last year, Navy had the edge, finishing 20th while Army was 22nd.

Top 25 universities in USA:
1. Harvard University
2. Princeton University
3. Yale University
4-5. Massachusetts Institute of Technology
4-5. Stanford University
6-7. University of Pennsylvania
6-7. California Institute of Technology
8-10. Columbia University
8-10. Duke University
8-10. University of Chicago
11. Dartmouth College
12-13. Northwestern University
12-13. Washington University
14. Cornell University
15. Johns Hopkins University
16. Brown University
17. Rice University
18-20. Emory University
18-20. University of Notre Dame
18-20. Vanderbilt University
21. University of California at Berkeley
22. Carnegie Mellon University
23-24. Georgetown University
23-24. University of Virginia
25. University of California at Los Angeles

On Thursday USA and Poland reached  to place an American missile defense base on Polish territory. It’s strongest reaction so far to Russia’s military operation in Georgia.
Russia reacted angrily, saying that the move would worsen relations with the United States that have already been strained severely in the week since Russian troops entered separatist enclaves in Georgia, a close American ally. At a news conference on Friday, a senior Russian defense official, Colonel General Anatoly Nogovitsyn, suggested that Poland was making itself a target by agreeing to serve as host for the anti-missile system. Such an action “cannot go unpunished,” he said.

Those fears were codified to some degree in what Polish and American officials characterized as unusual aspects of the final deal: that at least temporarily American soldiers would staff air defense sites in Poland oriented toward Russia, and that the United States would be obliged to defend Poland in case of an attack with greater speed than required under NATO, of which Poland is a member.

Polish officials said the agreement would strengthen the mutual commitment of the United States to defend Poland, and vice versa. “Poland and the Poles do not want to be in alliances in which assistance comes at some point later — it is no good when assistance comes to dead people,” the Polish prime minister, Donald Tusk, said on Polish television. “Poland wants to be in alliances where assistance comes in the very first hours of — knock on wood — any possible conflict.”

A sense of deepened suspicions — and the more darkly drawn lines between countries in the region — were also apparent in the emotional reaction from Russia.

“It is this kind of agreement, not the split between Russia and United States over the problem of South Ossetia, that may have a greater impact on the growth in tensions in Russian-American relations,” Konstantin Kosachyov, chairman of the foreign affairs committee in the Russian Parliament, told the Interfax news agency on Thursday in Moscow.

The missile defense deal was announced by Polish officials and confirmed by the White House. Under it, Poland would host an American base with 10 interceptors designed to shoot down a limited number of ballistic missiles, in theory launched by a future adversary such as Iran. A tracking radar system would be based in the Czech Republic. The system is expected to be in place by 2012.

In exchange for providing the base, Poland would get what the two sides called “enhanced security cooperation,” notably a top-of-the-line Patriot air defense system that can shoot down shorter-range missiles or attacking fighters or bombers.

A senior Pentagon official described an unusual part of this quid pro quo: an American Patriot battery would be moved from Germany to Poland, where it would be operated by a crew of about 100 American military personnel members. The expenses would be shared by both nations. American troops would join the Polish military, at least temporarily, at the front lines — facing east toward Russia.

Russia has long opposed the deal, saying the United States was violating post-cold-war agreements not to base its troops in former Soviet bloc states and devising a Trojan Horse system designed to counter Russia’s nuclear arsenal, not an attack by Iran or another adversary.

Stop-and-start negotiations over the arrangement that was sealed Thursday had been under way for almost two years, with the Polish government reluctant to press the deal in the face of strong opposition — and retaliatory threats — from Moscow.

For its part, Washington had balked at some of Poland’s demands, in particular the sale of advanced air defense systems that were unrelated to shooting down ballistic missiles.

But in a sign of the widening repercussions of the conflict in Georgia, those concerns were cast aside, as the offensive by Russia’s military across its borders was viewed around the world as a sign of Moscow’s determination to reimpose its influence across the old Soviet bloc.

Evraz Group has raised a five-year revolving credit facility of $550 million and a five-year term loan of $175 million to refinance the debt of its North American division Evraz Inc. NA.
The Russian steel maker said interest on the two loan facilities was LIBOR + 2.5% and LIBOR + 3.25%, respectively. The loans are secured by the assets of Evraz Inc. NA and its subsidiaries.
RBS Greenwich Capital and GE Capital arranged the credit facility and RBS Greenwich Capital the term loan.

Consumer prices shot up in July at twice the expected rate, pushed higher by surging energy and food costs. The latest surge left inflation running at the fastest pace in 17 years.

The Labor Department reported Thursday that consumer prices rose by 0.8 percent last month, twice the 0.4 percent gain that economists had been expecting.

It marked the third straight month of oversized inflation increases following jumps of 0.6 percent in May and 1.1 percent in June. And it leaves inflation rising by 5.6 percent over the past year, the biggest 12-month gain since January 1991.

Core inflation, which excludes volatile food and energy costs, rose 0.3 percent in July, slightly higher than the 0.2 percent increase that economists had expected. For the past 12 months, core inflation has risen by 2.5 percent, the highest 12-month change since February.

The inflation surge presents a major problem for the Federal Reserve: Will inflation force it to start raising interest rates even as the economy struggles to avoid a recession?

The big rise in inflation left consumers even more squeezed. The Labor Department said that average weekly earnings, after adjusting for inflation, fell by 3.1 percent in July compared to a year ago, the biggest year-over-year decline since November 1990.

The Labor Department also reported that the number of newly laid off workers filing for unemployment benefits fell by 10,000 last week to 450,000. The decline was less than expected and showed the labor market remains under severe stress from the weak economy. The four-week average for claims rose to the highest level in six years.

On Wall Street, stocks were mixed, torn between worries about inflation and bargain hunting among the hard-hit financial sector. In early trading the Dow Jones industrial average rose 6.68, or 0.06 percent, to 11,539.64. The broader Standard & Poor’s 500 index fell 0.99, or 0.08 percent, to 1,284.84, and the Nasdaq composite index rose 4.29, or 0.18 percent, to 2,432.91.

The 0.8 percent rise in consumer prices reflected big increases for energy and food, a pattern that has been happening for months.

Energy prices jumped by 4 percent last month, driven upward by a 4.1 percent rise in gasoline prices. In July prices at the pump were 37.9 percent above where they were a year ago.

There could be some relief on the way, however, as gasoline prices, after hitting a record at $4.11 per gallon in mid-July, have been falling in recent weeks. They now average nationwide around $3.79 per gallon, according to the survey by auto club AAA and the Oil Price Information Service.

Crude oil prices are also down about $30 per barrel from a peak in early July and analysts are hoping that this decline will help relieve some of the pressures on energy costs.

Food costs shot up by 0.9 percent in July, reflecting higher costs for a wide variety of food products. Over the past 12 months, food prices have risen by 6 percent, reflecting surging commodity prices. The Agriculture Department reported this week that this year’s corn and soybean harvests will be among the largest in history, though, easing fears that had been fueled after heavy flooding in the Midwest in June.

The core inflation figure was driven higher by a big 1.2 percent jump in clothing costs, the biggest increase in this area since August 1998. Airline ticket prices, which have been surging because of higher fuel costs, jumped another 1.3 percent in July.

CPI