New Jersey Business News

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More evidence of a weak economy, this time disappointing productivity figures and a lowered outlook from the maker of BlackBerries, is sending stocks lower this morning in early trading.

The Labor Department says productivity rose at an annual rate of 1.3 percent in the third quarter, down from 3.6 percent in the second quarter.

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NPS Pharmaceuticals has named Roger Garceau, a former Sanofi-aventis scientist, as its chief medical officer.

Effective Dec. 11, Garceau will replace Alan Harris, who the Bedminster specialty drugmaker said is leaving for "personal reasons." Harris will continue to serve as an advisor to NPS.

"Roger brings great experience in clinical development, medical affairs and new product marketing that will be invaluable as we advance our late-stage development programs," NPS chief executive Francois Nader said in a statement.

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Worker productivity slowed in the summer while wage pressures increased, but both developments were better than expected and are unlikely to raise inflation alarms at the Federal Reserve.

The Labor Department this morning reported that productivity, the key ingredient for rising living standards, rose at an annual rate of 1.3 percent in the July-September quarter. That's down from the 3.6 percent growth rate in the second quarter, but slightly higher than the 1.1 percent increase initially reported a month ago and better than the 0.9 percent rise economists expected.

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Wall Street appeared headed for a lower open this morning as investors awaited more readings that are expected to show a still-weakening economy. News that BlackBerry maker Research In Motion was lowering its third-quarter guidance added to the anxiety on the Street.

RIM said it has added fewer new subscribers than expected as the economy slowed. The news, which came amid predictions that retail sales fell in November, had investors worrying again about the impact of the recession on consumer spending -- spending that is crucial for the economy to recover.

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Continental Airlines is "comfortable" with the level of U.S. bookings in December but is seeing softer revenue trends in first- and business-class on international flights, an airline executive said today.

Gerry Laderman, the airline's treasurer, said average occupancy on U.S. flights this month would be flat to slightly higher than a year ago, helped by a reduction in capacity and the late date of Thanksgiving this year, which pushed some return flights into December.

On international routes, he said, Continental was seeing "softness" in yields on seats in first- and business-class. Yield is the revenue airlines get per seat for each mile flown.

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Fitch Ratings lowered ratings today on Prudential Financial, citing concern that the insurer will need additional capital over the next year.

The credit rating agency cut Prudential's senior debt rating to "A-" from "A" and the financial strength ratings of Prudential's life insurance subsidiaries to "AA-" from "AA." The rating outlook is "Negative."

Fitch said the downgrades reflect higher than expected volatility in earnings and capital, as well as liquidity needs at the holding company level to both meet large debt maturities through the end of 2009, and address subsidiary capital needs, in an "environment of capital markets volatility and diminished financial flexibility."

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IDT Corp. last night said it was selling its European prepaid payment services unit to Neovia Financial for $15.05 million in cash, part of the Newark company's effort to shed money-losing operations and streamline its wide-ranging businesses.

In the past two years, IDT has sold off its entertainment business and its consumer phone subsidiaries in Russia, the Netherlands and the United Kingdom. It has also pulled back on marketing of consumer phone services in the United States as the telecom market has soured. Despite those steps, IDT posted a loss last year and saw its sales slip.

IDT had launched the first prepaid debit card in the United Kingdom in 2006, and its prepaid payment services unit had $2.1 million in sales in Europe last year. But the business also posted a $2.8 million loss.

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