A20
EZ SU
KLMNO WASHINGTON BUSINESS DIGEST REGULATORS
FDA warns makers of e-cigarettes The Food and Drug Adminis-
tration is urging the electronic- cigarette industry to work with the agency to legally market the devices and is cautioning some companies that their sales and manufacturing practices violate federal law. The FDA said Thursday that it
sent warning letters to five com- panies that make e-cigarettes or components for the plastic and metal devices that heat a liquid nicotine solution in a disposable cartridge, creating vapor that the “smoker” inhales. The agency said one of the
STEVE HELBER/ASSOCIATED PRESS
VirginiaGov. Robert F.McDonnell addresses a meeting of theGovernor’s Commission onMilitary Installations in Richmond.He and lawmakers say Defense Department plans are not data-driven.
Va. to fight Defense moves
Cutbacks target Hampton Roads site, contracting budget
BY ANITA KUMAR Gov. Robert F. McDonnell and
members ofVirginia’s congressio- nal delegationvowedThursday to fightDefense SecretaryRobertM. Gates’s decisions to shutter the JointForcesCommand, amilitary installation in Hampton Roads, and to slash the Pentagon’s mili- tary contracting budget by 10 per- centayear for thenext threeyears. “The decision by Secretary
Gates . . . is one that is very short- sighted and is one that has not gone about anywhere near the documentation that would be neededinorder tomakeacolossal change of this kind,” saidMcDon- nell (R). “I think the concernmost ofushaveis that thiswasdoneina very hasty way with no demon- strable savings to the United States or to the Department of Defense.” At the firstmeeting ofMcDon- nell’s statewide military commis-
sion,members focused on Gates’s Aug. 9 decisions, which McDon- nell said could cost Virginia thou- sands of jobs and have a devastat- ing impact on the economy. The meeting, which took place at the state Capitol, was attended by Reps. Gerald E. Connolly (D), GlennNye (D),RobertC. Scott (D) and J. Randy Forbes (R), and Lt. Gov.BillBolling(R).Rep.FrankR. Wolf (R) participated by phone. The Defense Department met
Wednesday with representatives ofMcDonnell’s office and the con- gressional delegation, but Virgin- ia officials left frustrated after hearing that Gates had made a “philosophical” decision to close the Joint Forces Command rather than one based on data. “The secretary’s decisions re-
garding these efficiencies initia- tives were based on compelling advice and analysis from senior officials within [the Department of Defense], which showed that savings could be achieved through eliminating redundan- cies inoverhead,”DefenseDepart- ment spokeswoman Kathleen Kesler said. Defense officials did not pro- vide any documentation to justify
6Monitor your investments
atwashingtonpost.com/markets
Daily Stock Market Performance Index
Dow Jones Industrial Average
11,400 10,900 10,400 9900 9400
Nasdaq Composite Index
2600 2400 2200 2000
S&P 500 Index 1220
1170 1120 1070 1020
1104.18 +0.5 –1.0 2236.20 +0.3 –1.5 10,415.24
Close %Chg +0.3
Daily
%Chg –0.1
YTD
the reasons for the closing of the Joint Forces Command or for cut- ting the contracting budget, the congressman said. “The briefing they had was ab-
solutely nothing. They told us they had no analysis going in,” Forbes said. “If you don’t know before you make the decision what the savings are, it is just appalling you would do some- thing like this.” McDonnell and the lawmakers
said they have not been toldwhen PresidentObama or other federal officials would act on Gates’s rec- ommendation. McDonnell has written to Obama, and Scott said he spoke to the president recently in New Orleans, but neither has received a response. The Senate Armed Services
Committeewill hold a hearing on the cuts,but ithasnotbeensched- uled. A meeting of a subcommit- tee of the House Committee on Oversight and Government Re- formhas been set for Sept. 29.
kumara@washpost.com
companies, Las Vegas-based E- Cig Technology, is even selling liquid forms of drugs for erectile dysfunction and weight loss that can be used in an e-cigarette. The FDA is asking each company to let the agency know within 15 business days how it plans to correct the violations. The other companies to re-
ceive warning letters were E-Cig- aretteDirect of Colorado, Ruyan America of Minnesota, Gamucci America of Florida and Johnson Creek Enterprises ofWisconsin. In a letter to the Electronic
Cigarette Association, the FDA said the actions are not part of an effort to ban e-cigarettes. The agency encouraged the industry group to work with regulators through clinical trials to ensure the safety and effectiveness of the devices in helping people quit smoking traditional ciga- rettes. Ruyan America hasn’t offered
a product with nicotine formore than a year but does sell cartridg- es that contain an herbal ingredi- ent called lobelia to provide relief for withdrawal symptoms, said William Bartkowski, the compa- ny’s president. “We appreciate the regulatory
ambiguity, and we’re just not going to be in the market until such time as that that’s cleared up, and that may be a while,” Bartkowski said. Representatives with the
Electronic Cigarette Association and the other companies issued warning letters did not immedi- ately provide comment.
FRIDAY, SEPTEMBER 10, 2010
GERRY BROOME/ASSOCIATED PRESS
Johnson Creek Enterprises, maker of the Blu electronic cigarette, was one of five companies contacted by the Food and Drug Administration about practices thatmay violate federal law.
The battery-powered elec-
tronic cigarettes have become the center of a fight over how risky they are compared with traditional smokes, whether they’re legal and, if they are, how they should be regulated. The FDA and public health
groups have sounded the alarm, saying e-cigarettes contain dan- gerous chemicals and are being marketed to children, and the federal agency has halted ship- ments of them at ports nation- wide.
—Associated Press LEGAL
3 charged with defrauding investors A federal grand jury in Rich-
mond has indicted three Texas men for allegedly defrauding in- vestors in their life insurance settlement businesses. An 18-count indictment un-
sealed Thursday names Chris- tian Allmendinger of Houston, Adley Abdulwahab of Spring and David White of Missouri City. Charges include mail fraud, money laundering, conspiracy and securities fraud. The government is seeking
forfeiture of $103 million that it asserts the defendants illegally obtained by portraying invest- ments as risk-free and guaran- teeing returns of 10 to 12 percent. Attorneys for White did not
immediately returna phonemes- sage. Court records did not list attorneys for the two other de- fendants.
—Associated Press RAILROADS
Taller tunnels see first cargo run Norfolk Southern on Thurs-
day ran its first train loaded with double-stacked cargo containers through some of themost rugged parts of the Appalachian Moun- tains, opening a $191 million route made possible by an ambi- tious tunnel-expansion project. The railroad raised the height
of 28 tunnels along an old coal route, creating a more direct path for bigger freight trains to travel from an international shipping port in Norfolk to a transfer terminal in Columbus, Ohio. The trip is now shorter by 250miles—and 24 hours. Norfolk Southern and Eastern
rival CSX want to maximize the amount of consumer goods they can haul on a single train as they competewith the trucking indus- try to takemore freight fromthe East Coast to theMidwest. The company put up
$97.8 million for the three-year project, and the federal govern- ment added $83.3 million. Ohio and Virginia chipped in $9.8 million.
—Associated Press
On Mondays, TheWashington Post offers Capital Business, a weekly publication covering the region’s business community. A one-year subscription costs $49 and is available only to Post subscribers.
Visitwashingtonpost.com/capitalbusiness for more details.
THEMARKETS
Industry Group Health Care Technology Life Sciences
Office Electronics Commercial Banks Divers Financial Svcs
Hotels Restaurants & Leis REITS
Real Estate Mgmt & Dev Electrnc Eqp, Instr, Comp Metals & Mining
S&P 500 Industry Group Snapshot Daily
%Chg 2.47 2.22 2.12 1.84 1.70
–0.91 –1.17 –1.20 –1.24 –1.37
International Stock Markets Daily
Americas
Brazil (Bovespa) Canada (S&P/TSX Comp.) Mexico (Bolsa) Europe
Eurozone (DJ Stoxx 600) France (CAC 40) Germany (DAX) U.K. (FTSE 100)
Asia Pacific S O N D J
Company 3M
Alcoa
AmExp AT&T BoA
Boeing
Caterpillar Chevron
Exxon Mobil GE
Home Depot HP
Close 82.96
11.23
40.69 27.81 13.50 63.44 70.64 77.36
Cisco Systems 20.61 Coca-Cola DuPont
58.29 42.18 61.05 15.91 29.41 38.82
%Chg %Chg 0.3
1.4 1.5 1.5 1.0
–1.6 –0.1 0.1
–0.1 0.8
–0.5 0.5 1.3
–0.1 0.0
Other Measures Index
DJ Total Stock Market Index Russell 2000
Post-Bloomberg DC Area Index CBOE Volatility (VIX)
YTD 0.4
–0.8
–10.4 17.2 24.0 0.5
–13.9 2.3
25.3
–10.5 5.2 1.7
–24.6 Close
11,500.10 634.62 190.11 22.81
F M A M J
Dow Jones 30 Industrials Daily
–30.3 0.4
J A
Company IBM
Intel J&J
JPMorgCh Kraft Foods McDonald's Merck
Microsoft P&G Co Pfizer
Travelers
United Tech Verizon
Wal-Mart Walt Disney
Close 126.36
18.00 59.82 40.10 30.74 74.37 36.08 24.01 60.29 16.77 50.27 68.62 30.84 51.91 34.08
Daily%Chg 0.4 0.1 0.5
–1.9
%Chg %Chg 0.2
Daily
0.6 1.6 2.5 0.5
–2.2 0.8 0.3
–0.1 1.3
0.8 0.2 1.2 0.2 0.7
YTD –3.5
–11.8 –7.1 –3.8 13.1 19.1 –1.3
–21.2 –0.6 –7.8 0.8 –1.1
–0.4 –2.9 5.7
YTD%Chg 0.0 1.5 1.5 5.2
Australia (ASX 200) China (CSI 300) Hong Kong (Hang Seng) Japan (Nikkei)
4582.20 2926.46 21,167.27 9098.39
Cross Currency Rates EU €
US $ per EU € per
Japan ¥ per Britain £ per Brazil R$ per
Canada $ per Mexico $ per
0.7876
83.8500 106.4700 0.6480 1.7218 1.0346
0.8228 2.1862 1.3138
13.0125
Interest Rates Consumer Rates
Money market funds 6-Month CDs 1-Year CDs 5-Year CDs New car loan Home-equity loan
0.72 0.77 1.10 2.33 6.08 7.28
16.5222 1.0
–1.8 0.4 0.8
US$Brazil R$ Canada$Mexico $ 1.2698
Japan ¥ 0.0119 0.0094
0.0077 0.0205 0.0123 0.1550
Britain £ 1.5433 1.2154
129.4100
2.6571 1.5969
20.0828
0.5809 0.4574
48.6962 0.3764
0.6009 7.5580
0.9665 0.7611
81.0400 0.6262 1.6639
12.5761
0.0769 0.0605 6.4440 0.0498 0.1323 0.0795
Close
66,624.10 12,033.53 32,518.98
265.09 3722.15 6221.52 5494.16
%Chg 0.3
–0.1 0.3
1.1 1.2 0.9 1.2
YTD%Chg –20%
–2.5% 0 +2.5%
Commodities Futures
Copper Corn
Crude Oil Gold
Natural Gas
$3.4335 $4.5625 $74.25
$1249.40 $3.77
Close %Chg –1.6 +2.0 –0.6 –0.5 –1.2
Daily
Orange Juice Silver
Soybeans Sugar Wheat
0% +20%
Exchange-Traded (Ticker) %Chg Coffee (COFF.L) Copper (COPA.L) Corn (CORN.L) Cotton (COTN.L) Crude Oil (CRUD.L) Gasoline (UGAS.L) Gold (BULL.L)
0.0
–1.8 –0.1 0.1 1.0 0.7
Natural Gas (NGAS.L) Silver (SLVR.L)
Gainers Adobe Systems
–1.0 –3.0 –1.0
Gainers and Losers from the S&P 1500 Index Daily
Corinthian Colleges Skyline
Men's Wearhouse O'Charleys
JDS Uniphase
KeithleyInstruments Cathay Gen Bancorp Tenet Healthcare
CommunityHealthSys Gentiva Health Universal Corp Enzo Biochem
Health Mgmt Assoc Stepan
Moody's Corp Morgan Stanley
Calavo Growers Inc Korn/Ferry Intl Lufkin Industries
0.29% 0.25% 3.25%
Bank Prime Federal Funds LIBOR 3-Month
3.66% 3.90% 4.49%
10-year note Yield:
30-Year fixed mortgage 15-Year fixed mortgage 1-Year ARM
5-year note Yield:
2.76 1.55
4:30 p.m. New York time.
$32.86 $5.44
Close %Chg 12.1
$20.83 $22.25 $6.65 $11.10 $10.18 $10.62 $4.42 $29.74 $22.65 $37.02 $3.79 $7.11
$58.27 $23.57 $27.01 $20.08 $15.51 $42.10
11.0 6.1 6.0 5.9 5.7 5.7 5.6 5.5 5.0 4.8 4.5 4.4 4.4 4.1 4.0 4.0 3.9 3.8 3.8
Losers CROCS
Skechers USA
Compellent Tech Dr Pepper Snapple Meridian Bioscience DeckersOutdoorCorp AirTran Holdings Radiant Systems Affymetrix
Medifast Inc Ultratech
Shuffle Master
Group 1 Automotive Synovus Financial HarmanInternational Blyth
Viad Corp
RudolphTechnologies Kirkland's
Healthways Inc
2-year note Yield:
6-month bill Yield:
0.56 0.18
Note:Bank prime is from 10 major banks. Federal Funds rate is the market rate,which can vary from the federal target rate.LIBOR is the London Interbank OfferedRate. Consumer rates are from Bankrate. All figures as of
Close %Chg $11.63 –15.8
Daily
$23.02 –12.6 $17.08 $35.59 $18.26 $45.85 $4.31 $17.11 $4.43 $27.30 $15.77 $8.29 $26.78 $2.26
$32.03 $38.54 $14.87 $7.70
$12.38 $13.10
Treasury Performance Over Past Three Months
–6.9 –6.7 –6.2 –5.3 –5.1 –4.4 –4.3 –4.3 –4.3 –4.1 –3.9 –3.8 –3.8 –3.8 –3.8 –3.8 –3.7 –3.7
Value of $1000 invested for the past: Daily
$800 Data and graphics by
$1.5010 $19.81
$10.3775 $0.2243 $7.0675
day $1000
Close %Chg +5.3 –0.8 –0.3 +4.9 +4.1
Daily
month $1200
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