Dow Chemical Co. announced on Thursday that the company will be closing three of its Louisiana plants as part of a shift away from basic chemicals toward the more profitable specialty chemicals.

The closing of the plants was undertaken as a part of the company’ major cost cutting program after Dow bought rival Rohm & Haas in April for more than $16 billion. This deal added massive amounts of debt to its balance sheet. Dow is expecting to cut about a $100 million a year.

However, good news for about a hundred employees working there who’ll not be laid off and instead will be offered job elsewhere, Dow said.

These plants make ethylene, a building block for basic chemicals like plastic and packaging. The basic chemicals market is heavily affected by price fluctuations in crude. Their products are made and sold in large batches with minimal profit margins.

Citigroup has decided to raise interest rates on credit card accounts in a move which is expected to affect as many as 15 million US customers, according to a report in Financial Times.
The hike is interest rates on credit cards is being seen as part of a strategy to raise revenues before a legislation barring such hikes kicks in from 2010. Citing sources close to the decision, Financial Times reported that the rise in interest rates will make credit cards more expensive for at least 13 to 15 million customers since Citigroup co-brands with customers of many popular retail chains like Sears.

In a statement Citigroup claimed that the rise in interest rates was in keeping with “regular account reviews” and was in part motivated by increasing business costs so as to keep credit channels free in the consumer market. The company also announced that it was selling off 34% stake to the US government under the terms of a financial rescue package agreed with federal agencies.

In May this year, the Credit Card Responsibility, Accountability and Disclosure Act 2009 were passed in the US under the guidance of President Obama. The Act will help control finance industry practices and make it difficult for lenders to adjust risk-based pricing.

After a year of nationwide slump in the US auto market, there were reports that the decline of sales had slowed in June and the auto industry may have put its worst phase behind.

Auto makers sold a total of 849,857 vehicles in the month of June which was a 7.9% drop from the sales in May, according to figures compiled by Autodata Corp. the overall June sales also indicate a decline of 28% from the same time last year.

However the good news in the Autodata report was that the rate of decline in sales had significantly slowed for at least four of the six major car manufacturers. Ford Motor Co experienced the least decline in its June sales of 107%, a major improvement on declines of 30-40% in sales that has been crippling the biggest automakers in the United States since last year.

The slowdown in declining sales figures has brought back hopes for the Detroit Big Three that the darkest days of the auto making industry may be finally over. Even Chrysler which had appealed for bankruptcy protection last month saw better sales this June. Analysts believe that the waning recession and several government incentives to the domestic auto industry may result in cautious improvements during the second half of 2009.

Crabtree & Evelyn Ltd filed for bankruptcy in the US on Wednesday as the personal care products retailer became the latest victim of the recession crippling consumer markets.

The company filed for bankruptcy protection under Chapter 11 after sales slumped and revenue fell in the aftermath of the recession. Crabtree & Evelyn Acting president, Stephen Bestwick said in a court filing that last year’s housing crisis and the tightening of credit channels had forced consumers to restrict discretionary spending which in turn proved crippling for the company.

Crabtree & Evelyn is owned by Kuala Lumpur Kepong Berhard and is a division of the British parent holding company. Based in Woodstock, Connecticut, the American unit currently operates 126 stores across the US and has employee strength of 950. After its bankruptcy filing, Crabtree & Evelyn announced that it would continued to keep its stores open, honor gift cards and coupons even as it proceeds to reorganize its business under bankruptcy laws.

The worst post-war recession in the US economy saw several major names in the retail industry succumb to the economic slowdown. Since the end of 2007, retailers like Fortunoff, Steve & Barry’s, Gottschalks as well as Boscov’s were forced to seek bankruptcy protection under US laws.

Caribbean warmth and azure-blue seas make Cuba a tourist’s dream island. There is plenty to do in Cuba – luxuriate on the sun-kissed beaches, sail on luxury cruise liners, dance to mesmerizing Afro-Latin beats or discover the grandeur of old colonial heritage.

In recent times, Cuba has also emerged as a favored destination for all water sports fans. This is because the Cuban has some of the best coral reefs in the world which are an aquatic sports lover’s delight. Here divers and snorkelers can discover underwater treasures like gem-colored corals, amazing fishes and sea life, fabulous topography and even ancient sea-wrecks, if one is lucky!

The main diving sites in Cuba in located in Havana, Los Canarreos Archipelago, Santa Lucia, Varadero, Playa Giron, Ancon Peninsula, Santiago de Cuba and Jardines del Rey. Most of the diving centers are located near the bigger hotels and resorts which offer their own diving gear on hire. Other than this, Cuba has 30 major dive centers which are well-equipped with technical and instructional support. There are diving packages for everyone – from the professional to the novice. Some of these diving centers in fact offer courses in subjects like marine photography, night diving and other specialty diving.

Diving and snorkeling enthusiasts can thus make Cuba their next travel destination and before leaving they can check out www.ooaha.com which has some of the best Havana hotel deals.

The US government has enabled a larger number of troubled home loan borrowers to take advantage of a refinancing program offered by mortgage companies, Freddie Mac and Fannie Mae.

The Federal Housing Finance Agency announced on Wednesday that under the Home Affordable Refinance Program, Freddie Mac and Fannie Mae will be allowed to refinance home loans to borrowers whose houses are now worth a great deal less – upto 25% down - that their current mortgage. Before this announcement, the refinance plan was authorized to bail out only those borrowers whose homes had fallen slightly, up to 5%, below their current mortgage.

The Obama administration decision to use government-controlled lenders, Freddie Mac and Fannie Mae to bring a larger number of troubled borrowers under its refinance scheme will bring relief to thousands of homeowners whose houses have fallen hugely in value as compared to what they paid for them during the housing industry boom. According to Standard & Poor’s/Case-Schiller home price index, housing prices across the nation have slumped by 33% since 2006.

US Treasury Secretary Tim Geithner commented on the expansion of refinance program saying that it would not only provide relief to troubled borrowers but also go a significant way in getting the economy back on track.