Finance news

Greek farmers offload crops at cost price

Sunday, 26. February 2012 von Piter

Hammered by the financial crisis that has led to ever diminishing income, a group of residents in northern Greece have joined forces with potato farmers to slash consumer prices and ensure producers can get their crop to markets by cutting out the middle man.

Hundreds of families turned up Saturday in this northern Greek town to buy potatoes at massively reduced prices, sold directly by producers at cost price. They lined up in cars and with bicycles, on foot and with scooters to collect their bags of spuds from a truck that flung its doors wide open and was doing a roaring trade in the parking lot of a local courthouse.

Farmers say it costs about 20 cents ($0.27) to produce a kilogram (2 pounds) of potatoes, but that wholesalers will only buy them for 10-12 cents to get the crop to supermarkets, where they sell for about 60-70 cents a kilogram. Faced with making a loss, many producers say they have been unable to even get their products to the market.

Greece’s severe financial crisis, now entering its third year, has seen pensions and salaries slashed and led to skyrocketing unemployment of over 20 percent. More and more people have been turning up at soup kitchens run by the church or local aid groups, and homelessness has been increasing.

Faced with an ever deepening recession, some local groups have begun coming up with novel ways to beat the financial crunch.

Ilias Tsolakidis, 54, part of a volunteer group in northern Greece, said he contacted a potato farmer in northern Greece last week and posted an advertisement on the internet offering consumers the chance to order directly from the producer at cost price. He was overwhelmed by the response: by Wednesday, all 24 tons of potatoes on offer had been sold, with 534 families putting in orders.

His motive, Tsolakidis said, was “to cover a financial gap in the family budget. You know, the situation in the financial crisis has become very difficult. We help producers (from the local area) on the one hand, and also the families of consumers.”

Kiki Pantelopoulou couldn’t agree more.

“I didn’t only do this because it’s in my interest,” said the 42-year-old as she loaded a sack of potatoes onto her bicycle. “My main concern is how to stop this situation. This way, we favor Greek products and therefore producers can at least make the cost price.”

Tsolakidis said that with demand so high, his group of volunteers would set up another sale next weekend, buying another 24 tons of potatoes from a different farmer this time.

Konstantinos Karanikos, 67, said his son helped him order sacks of potatoes from Saturday’s sale over the internet, but could only secure half the amount he wanted because the demand was so high. “We will order again next weekend,” he said. “The important thing is for the producer to be satisfied and the consumer to have cheap potatoes.”

With the crop being sold at cost price of 20 cents a kilogram, Lefteris Kostopoulos, the farmer who put his spuds up for sale Saturday, didn’t make any profit on the transaction. But, he said, at least he managed to break even and sell more than half of the produce he had stored up in a warehouse.

“This group’s move was very good. It helped us shift the amounts we had in the warehouses, and we didn’t give them to the wholesalers who are asking for 10-12 cents per kilo,” he said. “We might not make money here, because we’re essentially breaking even, but at least we aren’t making a loss.”

Kalypso Skouba, 44, said she hoped the new movement spread to other products soon, so she could buy more vegetables or fruit directly from producers.

“I bought potatoes today just to show that it can’t only be the middlemen who make money,” she said.

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Russia warns against ‘hasty conclusions’ over Iran

Thursday, 23. February 2012 von Piter

Russia said Wednesday the world should not draw “hasty conclusions” over Iran’s most recent rebuff of U.N. attempts to investigate allegations the Islamic Republic hid secret work on atomic arms, but the U.S. and its allies accused Tehran of nuclear defiance.

Under international pressure to show restraint, Israel, which has warned repeatedly that it may strike Iran’s nuclear facilities, pointedly urged major world powers to mind their own business, saying it alone would decide what to do to protect the Jewish state’s security.

France said Iran’s continued stonewalling of the International Atomic Energy Agency “is contrary to the intentions” expressed by Tehran in its recent offer to restart talks over its nuclear activities.

In Washington, White House spokesman Jay Carney said while world powers have not yet reached a decision on those talks, Iran’s refusal to cooperate with the investigation “suggests that they have not changed their behavior when it comes to abiding by their international obligations.”

The IAEA’s acknowledgment of renewed failure came early Wednesday at the conclusion of the second trip in less then a month aimed at investigating suspicions of covert Iranian nuclear weapons work. The IAEA team had hoped to speak with key Iranian scientists suspected of working on the alleged weapons program, break down opposition to their plans to inspect documents related to nuclear work and secure commitments from Iranian authorities to allow future visits.

But mission head Herman Nackaerts acknowledged his team “could not find a way forward” in negotiations with Iranian officials. A separate IAEA communique clearly _ if indirectly _ blamed Tehran for the lack of progress.

“We engaged in a constructive spirit, but no agreement was reached,” it quoted IAEA chief Yukiya Amano as saying.

As on the previous visit that ended in early February, Iran did not grant requests by the IAEA mission to visit Parchin _ a military site thought to be used for explosives testing related to nuclear detonations, the statement said

The statement also said that no agreement was reached on how to begin “clarification of unresolved issues in connection with Iran’s nuclear program, particularly those relating to possible military dimensions.”

The Washington-based Institute for Science and International Security said Wednesday it had new indications of hidden weapons work by Iran.

ISIS said that a cache of telexes to Western high-tech companies from the Physics Research Center in Tehran shows that from about 1990 to 1993, the center sought to purchase equipment and materials that could have been used in weapons research and development.

Tehran has acknowledged that the Physics Research Center in Tehran conducted nuclear-related research, but said the center’s work was limited to efforts to prepare Iran’s military and civilian population for dealing with a nuclear strike.

Iran insists it is using nuclear energy only to generate power, and Supreme Leader Ayatollah Ali Khamenei proclaimed Wednesday that possession of atomic arms is a sin as well as “useless, harmful and dangerous.” Iran asserts that the allegations of secret work on developing nuclear arms are based on fabricated U.S. and Israeli intelligence.

But in a 13-page summary late last year, the IAEA listed clandestine activities that he said can either be used in civilian or military nuclear programs, or “are specific to nuclear weapons.”

Among these were indications that Iran has conducted high-explosives testing to set off a nuclear charge at Parchin.

Other suspicions include computer modeling of a core of a nuclear warhead and alleged preparatory work for a nuclear weapons test and development of a nuclear payload for Iran’s Shahab 3 intermediate range missile _ a weapon that could reach Israel.

The IAEA trip and its aftermath was accompanied by renewed saber-rattling by Iran and Israel.

Iranian Gen. Mohammed Hejazi, who heads the military’s logistical wing, warned that Iran will “not wait for enemies to take action against us.”

“We will use all our means to protect our national interests,” he told the semiofficial Fars news agency.

His comments followed Iran’s announcement of war games to practice protecting nuclear and other sensitive sites, the latest military maneuver viewed as a message to the U.S. and Israel that the Islamic Republic is ready both to defend itself and to retaliate against an armed strike.

Israel and the U.S. have said military force remains a last-ditch option to stop Iran from developing a nuclear weapon, but while Washington has recently tamped down its rhetoric _ and is thought to be urging Israel to practice restraint _ the Jewish state remains bellicose.

Russia, too, warned Israel against the consequences of attacking Iran, with Deputy Foreign Minister Gennyadi Gatilov telling the ITAR-Tass news agency Wednesday that such a strike “would be a catastrophe not only for the region but for the whole system of international relations.”

But Israeli Foreign Minister Avigdor Lieberman rebuffed both Washington and Moscow, telling Israel’s Channel 3 TV news the issue “is not their business.”

“The security of the citizens of Israel, the future of the state of Israel, this is the responsibility of the Israeli government,” he said. “We will make the best decision for the Israeli interest.”

Shannon Kile, head of the Nuclear Weapons Project at the Stockholm International Peace Research Institute, warned the risk of military conflict was rising _ and not necessarily through the threat of direct Israeli attack.

“There is an escalation dynamic under way, especially in the Persian Gulf, where you could have a conflict arising from an accident, a misunderstanding, from a local commander acting on his own initiative and I think that’s the problem,” Kile said.

In Paris, Foreign Ministry spokesman Romain Nadal said Tehran’s continued stonewalling of the probe, now in its fourth year, “is another missed opportunity for Iran” to ease suspicions about its nuclear goals and reconcile with the rest of the world. Nadal said Iran’s refusal to cooperate on the issue “is contrary to the intentions” of Iran’s recent offer to restart nuclear talks after a series of abortive meetings over the past two years.

German Foreign Minister Guido Westerwelle said Iran’s intransigence “is the path the leads to further international isolation.” But German officials were cautious when asked about the possibility of imposing yet more sanctions against Iran in response to the latest setback.

Britain, which would join the U.S., China, Russia, France and Germany in any nuclear negotiations with Iran, said it wasn’t yet clear what impact the IAEA visit’s failure might have on the international community’s response to Tehran’s recent offer of renewed talks.

“We share the IAEA’s disappointment. The IAEA genuinely wants to make progress and we want the Iranians to engage in meaningful talks,” a spokesman for Britain’s foreign ministry said on customary condition of anonymity in line with policy.

Russia urged renewed efforts to engage Iran on its suspected secret nuclear work.

“We must not make hasty conclusions,” Gatilov, Russia’s deputy foreign minister, told reporters, calling for the IAEA to “continue contacts” with Iran on the issue.

The IAEA said no further talks were planned for the moment. But Iran’s envoy to the IAEA, Ali Asghar Soltanieh also said “more time was needed” for final agreement on the issue.

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Geithner Treasuries Trail Paulson

Tuesday, 21. February 2012 von Piter

Timothy F. Geithner, who took over the Treasury Department in the midst of the worst financial crisis since the Great Depression and oversaw the almost doubling of U.S. public debt, has done better for investors than Robert Rubin while falling short of Henry Paulson.

Since Geithner assumed office in January 2009, returns on Treasuries have exceeded bonds of other countries by 0.3 percentage point on an annualized rate, according to Bank of America Merrill Lynch index data. That

General Mills cuts fiscal 2012 adj. profit outlook

Saturday, 18. February 2012 von Piter

General Mills Inc. is lowering is fiscal 2012 adjusted earnings forecast, saying it experienced softer volumes in the U.S. during December and January.

Its shares fell $1.43, or 3.6 percent, to $38.35 in premarket trading on Friday.

General Mills remains one of the most popular food brands in grocery stores. But like most of its peers, it has struggled with higher costs for everything from ingredients to labor and has raised its prices to help alleviate some of the pressure.

The Minneapolis company, which makes foods such as Cheerios cereal, Nature Valley granola bars and Hamburger Helper, said it now expects full-year adjusted earnings of $2 payday lenders.53 to $2.55 per share. Its prior guidance was for earnings between $2.59 and $2.61 per share.

Analysts polled by FactSet forecast earnings of $2.60 per share for the year.

For its fiscal third quarter, General Mills expects earnings of 54 cents to 56 cents per share. In the same period last year it made 56 cents per share.

General Mills plans to report earnings on March 21.

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Biggest Australia Jobs Gain Since 2010 Augurs Interest Rate Pause: Economy - Bloomberg

Thursday, 16. February 2012 von Piter

Australia added the most workers in 14 months in January and the jobless rate unexpectedly declined, spurring investors to increase bets the central bank will extend an interest-rate pause.

Payrolls rose by 46,300 last month, the most since November 2010, after a revised drop in December of 35,600, the statistics bureau said in Sydney today. That compares with the median estimate for an increase of 10,000 in a Bloomberg News survey of 25 economists. The jobless rate fell to 5.1 percent.

Stocks fell as traders boosted the odds Reserve Bank of Australia Governor Glenn Stevens will keep the benchmark borrowing cost unchanged March 6 after he unexpectedly paused at 4.25 percent rather than cut last week as resource investment drives growth. The central bank lowered the rate at back-to-back meetings last quarter as Europe

A look at Greece’s austerity measures

Tuesday, 14. February 2012 von Piter

Greece’s international creditors have spelled out the austerity measures promised by Athens that have to be put into practice before it can receive new bailout cash, totaling more than euro2.5 billion ($3.31 billion).

Those budget cuts include:

_ euro1.076 billion ($1.43 billion) to be cut from the country’s pharmaceuticals spending

_ euro300 million ($397 million) in military budget cuts

_ euro270 million ($358 million) to be slashed from regular government expenditure and election-related budgets

_ euro190 million ($251 million) to be trimmed from subsidies to people living in remote areas

_ euro400 million ($530 million) in public investment budget cuts

_ euro300 million ($397 million) in budget subsidies to pension funds

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Greece’s coalition party leaders back bailout deal

Saturday, 11. February 2012 von Piter

The leaders of the two parties backing Greece’s coalition government called on their deputies Saturday to back legislation that calls for harsh new austerity measures _ essential if Greece is to get a new bailout deal worth euro130 billion ($171.6 billion) and stave off bankruptcy.

Debate on emergency legislation approving the new bailout and a debt-swapping deal with private creditors will begin in committee Saturday afternoon. A plenary session will debate and vote on it Sunday. Further legislation detailing the measures demanded by, and agreed with, Greece’s public creditors, the European Union and the International Monetary Fund, will be up for vote a few days later. The exact time has not yet been set.

Both leaders _ socialist George Papandreou and conservative Antonis Samaras _ told their respective parliamentary groups that there is no real alternative to voting for the legislation, except pushing Greece to bankruptcy.

“If we do not dare today, we will live a catastrophe,” Papandreou said.

“This (bailout) will give the country the opportunity and the time to stand back on its feet,” said Samaras.

Deputies are wary of voting for the measures, which include wage and pension cuts and the prospect of more to come, along with the firing of several thousand civil servants. The demands of the EU and the IMF have caused one of the original coalition parties _ the populist right-wing Popular Orthodox Party _ to quit the government and withdraw its four members from the cabinet. Two more cabinet members _ both socialist deputy ministers _ have also quit, citing their disagreements with parts of the austerity package.

Sensing the unease among their MPs, and trying to prevent a wholesale rebellion, both Papandreou and Samaras have called for a yes vote. But whereas Papandreou was vague about the prospect of sanctions against any rebels, Samaras was clear _ threatening to expel those who did not vote in favor and to exclude them from the next election. “I want to make it absolutely clear … rebels or ‘bravehearts’ have no place in (the party’s) candidate lists,” he said.

Samaras had opposed the initial bailout, worth euro110 billion, that Papandreou, as Prime Minister, had negotiated in May 2010, saying the measures it contained would worsen the crises and result in a deep recession. He now says he feels vindicated, but conditions have worsened so much lately _ due to the bad handling of the crisis by the previous socialist government _ that social cohesion is at stake. He also blamed Greece’s EU partners for lately showing a tendency to punish Greece rather than help it. He added that the turning point for the EU’s hardening stance was Papandreou’s sudden call in late October for a referendum on Greece’s stay in the eurozone.

“The danger now is that Greece’s social unrest will spread as a contagion to Europe,” he said.

In his speech earlier Saturday, Papandreou defended his government’s record, saying that they had inherited a badly damaged economy from the conservatives in October 2009 and that the socialists faced nothing but disruptive criticism throughout their term, through last November.

“We were at war, fighting alone, for two years … whoever talks about the recipe (of the austerity measures) being wrong is a hypocrite.”

Papandreou laid the blame for the worsening crisis in Greece at the doorstep of a “conservative Europe with slow reflexes,” saying the Franco-German meeting in Deauville, France, in October 2010, emboldened the markets to fan the flames of the crisis. He called for “real integration of economic policies,” a Eurobond, a crackdown on tax havens and a tax on financial transactions.

Samaras insisted the country must hold a snap election once the agreement is in place and the debt swap with private creditors is completed. “Then we will demand a dissolution of the parliament, because (an election) will strengthen our bargaining position … I have been a deputy since 1977 and never, in my career, has a parliament been so out of step with the wishes of the people,” he said, adding that he would not agree to the extension of the mandate of the coalition government. Elections are normally due in October 2013.

While the two parties met, union leaders staged a demonstration outside parliament that attracted about 4,000 protesters, according to the police _ while 5-6,000 policemen patrolled the streets of Athens. The protest ended peacefully, but authorities are bracing for a much larger, and possibly violent, one on Sunday evening.

Another 4,000 turned out for a peaceful demonstration in Thessaloniki, Greece’s second city.

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Stocks stall ahead of jobs report

Friday, 03. February 2012 von Piter

U.S. stocks ended mixed Thursday as investors digested a cautious economic outlook from the chairman of the Federal Reserve one day before a key report on the job market.

The Dow Jones industrial average () fell 11 points, or 0.1%, to end at 12,705. The S&P 500 () rose 1 points, or 0.1%, to 1,324. The Nasdaq () rose 11 points, or 0.4%, to 2,860.

"It’s a quiet day," said Paul Zemsky, head of multi-asset strategies at ING Investment Management. "The market is taking a pause before payrolls."

On Friday, the government is expected to report the U.S. economy added 130,000 jobs in January, according to economists surveyed by CNNMoney.

That would mark a sharp slowdown in hiring versus December, when 200,000 jobs were created. The unemployment rate is expected to rise to 8.6%.

Speaking before Congress Thursday, Fed chairman Ben Bernanke said the economy has shown some signs of improvement recently, but described the pace of the recovery as "frustratingly slow."

The sluggish recovery leaves the economy "vulnerable to shocks," including the debt crisis in Europe, the central bank chief added.

The comments raised speculation that the Fed is willing to take additional steps to support the economy if conditions deteriorate, said Doug Roberts, chief market strategist for Channel Capital Research.

"He’s saying that if things get worse, I’m available and we’re going to ease," said Roberts. "Clearly, he’s telling the market that if you decide to bet against me you’re going to get killed."

The Fed has purchased billions of dollars worth of Treasury bonds and other assets under its quantitative easing program. Some analysts say the Fed could hold a third round of asset purchases this year, depending on how the recovery progresses.

Europe: Where things stand

Meanwhile, investors remain on the lookout for an official agreement on a debt-reduction plan and second bailout for Greece. The deal is expected to come by the end of the week, though deadlines have been missed in the past.

U.S. stocks rose Wednesday, but closed off the highs of the day, on a combination of improved economic data and easing concerns about Europe’s debt crisis.

Economy: Initial jobless claims for the week ended Jan. 28 totaled 367,000, according to the government. They were expected to total 375,000, according to a survey of analysts by Briefing.com.

Data released Thursday morning from outplacement consulting firm Challenger, Gray & Christmas shows planned job cuts surged 28% in January to 53,486 — marking the highest total since 116,000 job cuts were announced in September.

The Challenger report follows data Wednesday from payroll processor ADP saying that the private sector added 170,000 jobs in January, down sharply from 292,000 in December.

Companies: Retailers reported better-than-expected same-store sales in January, according to data from sales-tracker Thomson Reuters.

Abercrombie & Fitch’s () stock fell 13% after the clothing retailer reported weak same-store sales for the latest quarter and lowered its earnings guidance.

Zynga () shares rallied 17% following Facebook’s IPO filing. Zynga’s gaming apps and advertising contributed about 12% of Facebook revenue last year.

Facebook IPO: Morgan Stanley is big winner

Sony () shares fell 6% after the company reported disappointing earnings and revenue.

Unilever () shares slumped 3.5% after the maker of Lipton teas, Dove soaps and other consumer products said it had difficulty passing higher raw material costs on to consumers last year, and announced a gloomy outlook for 2012.

Qualcomm (, Fortune 500), a company that sells chips used in cell phones, boosted its forecast for its 2012 performance. Shares rose 2%.

Viacom (, Fortune 500) shares fell after the media giant reported better-than-expected earnings in its fiscal first quarter, but cited ratings weakness and softness in the U.S. television advertising market. Its film division swung to an operating loss in the quarter.

Green Mountain Coffee Roasters () shares jumped 24% after the company reported its first-quarter revenue soared 102% compared to a year earlier, boosted by K-Cup sales.

World markets: European stocks closed modestly higher. Britain’s The DAX () in Germany added 0.6% and France’s CAC 40 () gained 0.3%. The FTSE 100 () in London ended little changed.

Asian markets ended higher. The Shanghai Composite () climbed 2%, the Hang Seng () in Hong Kong added 2% and Japan’s Nikkei () rose 0.8%.

Currencies and commodities: The dollar rose against the euro and the British pound, but fell versus the Japanese yen.

Oil for March delivery slipped $1.25 cents to end at $96.36 a barrel.

Gold futures for April delivery added $9.80 to $1,759.30 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.85%.  

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U.S. Companies Add 170,000 Workers in January - Bloomberg

Wednesday, 01. February 2012 von Piter

Companies added 170,000 workers in January, reflecting job gains in services and at small businesses, according to a private report based on payrolls.

The increase was less than forecast and followed a revised 292,000 rise the prior month that was smaller than previously reported, the report from the Roseland, New Jersey-based ADP Employer Services showed today. The median estimate in a Bloomberg News survey of economists called for an advance of 182,000.

Suit claims Silicon Valley anti-poaching scheme

Sunday, 29. January 2012 von Piter

In Silicon Valley’s white-hot competition for tech talent, programmers can face a daily barrage of calls from recruiters seeking to woo them to rival companies with offers of better pay and perks.

But workers for some of the biggest names in the business claim their phones fell silent because of a conspiracy among their employers. And they claim the world’s biggest tech icon was at the center.

A lawsuit filed in federal court in San Jose claims senior executives at Google Inc., Intel Corp., Adobe Systems Inc., Intuit Inc., Lucasfilm Ltd., Pixar and Apple Inc. violated antitrust laws by entering into secret anti-poaching agreements not to hire each other’s best workers. In doing so, the suit contends the companies were able to keep wages artificially low by preventing bidding wars for the best employees.

The plaintiffs also claim that company e-mails show Steve Jobs himself sought and orchestrated at least some of the so-called “gentlemen’s agreements” while Apple’s CEO.

“I believe we have a policy of no recruiting from Apple,” then-Google chief executive Eric Schmidt wrote in a 2007 email cited by the plaintiffs. The email was originally furnished to the U.S. Justice Department, which investigated similar allegations in 2010. The same email included a forwarded message from Jobs complaining that Google’s recruiting department was trying to lure away an Apple engineer.

“Can you get this stopped and let me know why this is happening?” Schmidt wrote. Google’s director of staffing replied that the recruiter “will be terminated within the hour.”

The companies’ attorneys said the facts even as presented by the plaintiffs show no evidence of a conspiracy.

Rather, they said in court filings that some companies had separate one-to-one pacts among themselves as they worked together on various business ventures.

“The obvious explanation for the existence of these agreements were the collaborations,” said Apple defense attorney George Riley, as the two sides squared off Thursday in U.S. District Court in San Jose. Riley told Judge Lucy Koh that such arrangements were common.

The case hinges on a practice described in court documents as “cold-calling.” Under the practice, recruiters from one company will call an employee at another company who has the skills the company needs. The practice can lead to bidding wars as workers play the companies off one another to get the highest pay.

Cold-calling, the suit contends, helps workers get a sense of what they’re worth in a free market for employment in which all the companies are competing against one another for top employees. When the cold-calling stops, workers lose the knowledge and the leverage they could otherwise use to demand higher pay.

The Justice Department’s 2010 investigation included all the same companies except Lucasfilm, and the plaintiffs in some ways mimic the language from the department’s original case. The companies settled without admitting any wrongdoing but agreed not to enter into future agreements preventing them from cold-calling each other’s employees to recruit them.

Because the Justice Department’s case was settled quietly without any public dispute, court records contain little detail about any specific alleged agreements among companies.

Some of those details did come to light, however, in a recent filing by the plaintiffs, which quotes emails they obtained from the companies that had previously been given to the Justice Department business cards.

In a 2005 email describing a purported agreement between former Adobe CEO Bruce Chizen and his then-counterpart at Apple, an Adobe human resources executive wrote: “Bruce and Steve Jobs have an agreement that we are not to solicit ANY Apple employees, and vice versa,” according to court documents.

Ex-Palm Inc. CEO Ed Colligan wrote to Jobs in 2007: “Your proposal that we agree that neither company will hire the other’s employees, regardless of the individual’s desires, is not only wrong, it is likely illegal,” the plaintiffs’ filing said.

In internal company communications, Intel CEO and Google board member Paul Otellini described a gentleman’s agreement between the two companies: “Let me clarify. We have nothing signed. We have a handshake `no recruit’” between himself and then-Google CEO Schmidt. “I would not like this broadly known.”

Defense attorneys contend the emails are being distorted by the plaintiffs and show nothing beyond legitimate one-to-one agreements. Apple declined to comment.

“Intel disagrees with the allegations contained in the private litigation related to recruiting practices and plans to conduct a vigorous defense,” said Sumner Lemon, an Intel spokesman.

Adobe said the company does not comment on pending litigation.

The other companies named in the suit did not immediately respond to requests seeking comment.

Whichever side prevails, the case underscores the high wages talented tech workers can command in Silicon Valley, where the tech industry added thousands of jobs last year. According to federal labor statistics, mid-level tech workers in the region such as computer security specialists, web developers and network architects earn more money than anywhere else in the country, with average annual salaries topping $110,000.

Many of those workers could get thousands more if the case goes their way, lead plaintiff’s attorney Joseph Saveri said. Given the potentially tens of thousands of workers affected if the plaintiffs succeed in turning the suit into a class-action case, Saveri said the combined damages for the companies could reach into the hundreds of millions of dollars if decided at trial.

Such penalties would sink many companies. But Apple recently reported cash reserves of more than $97 billion. Google also has billions in cash on hand.

One anti-trust attorney not involved in the case doubts the companies have much to worry about anyway.

Antitrust cases that revolve around hiring practices are difficult to win, said David Balto, a Washington, D.C.-based antitrust lawyer who investigated Microsoft as a staff attorney for the Federal Trade Commission in the 1990s. Among the legal challenges they face is defining who exactly makes up the class of workers harmed by the alleged violations, since people with different jobs have different employment options, he said.

“I don’t think anybody at these companies is losing a nanosecond of sleep because of this lawsuit,” Balto said.

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