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President Obama will sign an executive order Thursday to set up a bipartisan fiscal commission to weigh proposals to rein in the soaring federal debt, according to a White House official.

The official, who requested anonymity because the President has not made the announcement yet, said the co-chairs of the commission will be Democrat Erskine Bowles, former White House chief of staff for Bill Clinton, and Alan Simpson, former Republican Senator from Wyoming. It’ll be officially titled the National Commission on Fiscal Responsibility and Reform.

In his weekly radio and Internet address this past Saturday, Obama touted the commission as the best way to attain "long-term deficit reduction" at a time when Congress seems paralyzed to come together on the mix of spending cuts and tax increases that will likely be needed to balance the nation’s budget.

"Because in the end, solving our fiscal challenge — so many years in the making — will take both parties coming together, putting politics aside, and making some hard choices about what we need to spend, and what we don’t," Obama said Saturday. "It will not happen any other way."

Obama has complained bitterly about the fact that a stronger fiscal commission was killed in the Senate earlier this month after several Republicans dropped their previous support after the President declared he would back it, leading to Democratic charges that the GOP was simply trying to deny Obama a victory.

"Unfortunately this proposal — which received the support of a bipartisan majority in the Senate — was recently blocked," Obama said in Saturday’s address. "So, I will be creating this commission by executive order."

The stronger commission, which was proposed by Sens. Kent Conrad (D-N.D.) and Judd Gregg (R-N.H.), would have had the full force of law instead of just being created by executive order. It would have mandated that the commission’s recommendations had to be voted on both chambers of Congress, forcing lawmakers in both parties to vote up or down on the panel’s expected recommendations on spending cuts and tax hikes.

Under this scenario, the commission will not have the power to force Congress to cast politically unpopular votes. So the report could wind up being another blue ribbon panel report that sits on a shelf somewhere, unless there is public pressure for Congress to act on the proposals.

The commission is expected to study the problem for the next several months and then release its report with recommendations shortly after the 2010 election so that it does not tied up in the politics of the midterms. The new Congress that takes office in 2011 would then have to decide whether or not it wants to consider the proposals. 

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Greece’s biggest union approved the second mass strike this month and tax collectors began a 48-hour walkout, showing that Prime Minister George Papandreou’s parliamentary majority may not be enough to implement his plan to cut the European Union’s largest deficit.

GSEE, which represents about 2 million workers in the private sector, voted at a meeting in Athens today to walk out Feb. 24. The main public-employee union plans a Feb. 10 strike to protest spending cuts as Papandreou steps up budget cuts to persuade investors Greece won’t need a bailout.

“It is still the beginning,” Stathis Anestis, the GSEE spokesman, said on the telephone today. The slogan for the strike is “people come first, markets and profit second,” he said. Anestis reiterated the union’s view that Papandreou’s government “succumbed” to the markets.

Greece’s plan to narrow the budget gap won European Commission backing yesterday after the government announced more measures to reduce the shortfall. Papandreou promised to increase fuel taxes and raise the retirement age, while retreating on a promise to raise wages faster than inflation, a pledge that helped him win elections in October.

“The first part of the action plan is on its way and now has the EU’s approval,” said Ioannis Sokos, a London-based interest-rate strategist at BNP Paribas SA. “What remains is the second part which has to do with the Government versus the Greek people. This is as tough as the first part.”

Stocks, Bonds

The benchmark ASE stock index fell about 3 percent today. Bond rose after European Central Bank President Jean-Claude Trichet said he is confident that Greece can cut its budget deficit. The risk premium investors demand to buy Greek debt over comparable German 10-year bonds narrowed 3 basis points to 347 basis points.

“We expect and we are confident that the Greek government will take all the decisions that will permit them to reach that goal” of cutting the deficit below the European Union’s limit, Trichet said at a press conference in Frankfurt.

Papandreou, 57, has appealed twice this week for Greeks to accept “painful” measures, saying the country can’t afford strikes and blockades. The previous government of Kostas Karamanlis was plagued by labor protests after he tried to tighten pension rules and raise taxes to shore up the government’s finances.

Tax Collectors Strike

The tax collectors struck to protest cuts in bonuses to the public sector. About 98 percent of the 14,000 collectors joined the protest, a POEDY-DOY union spokeswoman said. Also striking for 48 hours are customs workers and Finance Ministry employees, who blocked entry to the economy and finance ministries in central Athens today, the state-run Athens News Agency reported.

“The majority of Greek society continues to support us because it knows these are necessary decisions and taken with a sense of justice,” Finance Minister George Papaconstantinou told Greek Mega TV in an interview late yesterday.

The plan endorsed by the European Union would slash the deficit of 12.7 percent of gross domestic product to within the EU’s 3 percent limit in 2012. Concern that Greece and other European nations may struggle to contain their deficits has pushed the euro down more than 7 percent since late November.

Joaquin Almunia, the EU’s monetary-affairs commissioner, was forced yesterday to reject suggestions International Monetary Fund aid would be needed.

The euro nations “have taken the situation in hand,” IMF Managing Director Dominique Strauss-Kahn said today on RTL radio in France. “We are there to help, if asked, but I understand that the euro nations want to handle the situation themselves.”

Union Tests

Greek unions have already tested Papandreou, who heads the socialist Pasok party. Dockworkers struck for several weeks in October to demand the government keep a promise to re-examine the handover of part of the port to Hong Kong-based Cosco Pacific Ltd. Farmers have been blocking roads and border posts for about two weeks to demand higher prices.

Support for the previous Karamanlis government was weakened by December 2008 riots sparked by the police shooting of a teenager. At the time, GSEE and ADEDY, the civil-service group representing about 600,000 state workers, rebuffed a call from the prime minister to cancel a planned general strike to prevent more clashes, adding to the pressure on Karamanlis.

“Greece and the rest of the fiscally challenged periphery is still in for a bumpy ride, not least because the social and political opposition to austerity programs of this kind is likely to build from here,” said Russell Jones, head of global fixed-income strategy at RBC Capital Markets in London.

Strike Next Week

ADEDY called its Feb. 10 strike to oppose plans by Papandreou to deepen spending cuts and to limit wage increases to those earning less than 2,000 euros ($2,782) and to trim bonuses for all state workers.

Papapandreou widened the wage freeze to all public workers on Feb. 2. State pay increases provide a gauge for increases given to workers in the private sector.

“Our worst expectations were confirmed,” ADEDY Chairman Spyros Papaspyros said yesterday. “There is more to come.”

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The Reserve Bank of India told lenders to set aside more deposits as reserves than economists predicted after raising its growth and inflation forecasts. Stocks and bonds fell.

Governor Duvvuri Subbarao increased the cash reserve ratio to 5.75 percent from 5 percent, exceeding the median forecast for a half-point move in a Bloomberg News survey, an RBI statement showed in Mumbai today. The bank kept benchmark interest rates unchanged.

The decision is India’s biggest step yet toward raising borrowing costs as inflation and asset-bubble concerns reverberate across Asia. China, Malaysia and the Philippines moved closer toward raising rates this month and Australia and Vietnam have already done so, spurring a sell-off in stocks and bolstering the outlook for currency gains in the region.

“The policy is indicating a sequential step towards monetary tightening in India,” said Shubhada Rao, chief economist at Yes Bank Ltd. in Mumbai. “The bank may raise policy rates before the next scheduled meeting,” on April 20.

India’s benchmark stock index extended its drop, bond yields rose and the rupee weakened after the report. The Sensitive stock index fell 1.2 percent to 16,105.75, while the yield on 10-year government bonds increased to 7.59 percent from 7.55 percent at 11:20 p.m. in Mumbai. The rupee weakened to 46.39 against the dollar from 46.36 before the report.

Gaining Momentum

Governor Duvvuri Subbarao said India’s economic growth could “gain momentum” over the next year and “reinforce” inflationary pressures. The central bank raised its inflation forecast to 8.5 percent by March 31 from 6.5 percent.

“The message being sent across is that stern steps will be taken going forward to contain inflation,” said Killol Pandya, who oversees the equivalent of $152 million in Indian debt at Shinsei Asset Management India Pvt. in Mumbai. “There are indications the economy is turning around.”

In China, the central bank ordered some banks to pare lending, raised the ratio for deposits banks must set aside as reserves and guided bill yields higher this month after loan growth surged.

Malaysia kept borrowing costs unchanged on Jan. 26, while warning that rates cannot be kept “too low” for too long because of the need to prevent a build-up of “financial imbalances.” The Philippines increased its so-called rediscounting rate, one of the interest rates it charges lenders for borrowing money from the central bank, as it began unwinding stimulus measures.

Equities Retreat

Equities have retreated on concern that the withdrawal of stimulus measures will slow a rebound in corporate earnings. The MSCI Asia Pacific index has lost 7.3 percent in the past two weeks.

Analysts anticipate currency gains as strengthening economies force central banks to act. The rupee may gain almost 8 percent by year-end to 43 per dollar, according to the median forecast in Bloomberg survey. China’s yuan and Malaysia’s ringgit are estimated to advance 3.7 percent.

The Reserve Bank estimates India’s $1.2 trillion economy, Asia’s third largest, will expand 7.5 percent in the year ending March 31, more than its October forecast of 6 percent “with an upward bias,” Subbarao said in the statement today.

The bank left its benchmark reverse repurchase rate unchanged at 3.25 percent and the repurchase rate at 4.75 percent, today’s statement said. The increase in cash reserves will drain 360 billion rupees ($7.8 billion) from the banking system in two stages, on Feb. 13 and Feb. 27.

Exacerbate Inflation

“As growth accelerates and the output gap closes, excess liquidity, if allowed to persist, may exacerbate inflation expectations,” Subbarao said in the statement. “Though the inflationary pressures stem predominantly from the supply side, the consolidating recovery increases the risks of these spilling over into a wider inflationary process.”

India’s benchmark wholesale-price inflation accelerated to 7.3 percent in December, the fastest pace since November 2008. Food accounted for 80 percent of December’s inflation reading, government data showed, as deficient rains last year hurt output of rice, wheat and sugar.

Subbarao’s move is aimed at checking manufacturing inflation that surged to 5.2 percent in December from 1.6 percent in October. Industrial production rose 11.7 percent in November, the fastest pace in two years, as sales at companies including Hero Honda Motors Ltd. surged.

Hero Honda, the nation’s biggest motorcycle maker, reported a better-than-estimated 79 percent increase in third- quarter net income after sales climbed.

Food Inflation

“Tighter monetary policy will have no impact on inflation as it is largely a supply-side-driven phenomenon,” Harsh Pati Singhania, president of the Federation of Indian Chambers of Commerce and Industry in New Delhi, said before the report. “Interest rates should not be increased.”

Subbarao said there have been “some signs” of demand pressures on inflation and that he expects the current growth rate of 7.5 percent to continue in the next financial year starting April 1.

To ease supply constraints, the government on Jan. 13 announced plans to sell as much as 3 million metric tons of wheat and rice in the open market until March and permit duty- free imports of white sugar until Dec. 31 to increase supplies.

Prime Minister Manmohan Singh’s government is under pressure to tame inflation as opposition parties stepped up their criticism for failing to curb prices. Inflation is politically sensitive in India, where the World Bank estimates almost three-quarters of the nation’s 1.2 billion people live on less than $2 a day.

Subbarao said the withdrawal of monetary accommodation can’t be “effective” in controlling inflation unless the fiscal stimulus is also rolled-back in a coordinated manner. He said government borrowing must be cut to contain inflation and to meet credit demand of companies.

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Treasurys were mixed on Friday after the government posted a larger-than-expected jobs decline.

What prices are doing: The benchmark 10-year note was up less than 1/32 at 96-11/32, and the yield was 3.83%. Bond prices and yields move in opposite directions.

The 30-year bond fell 12/32 to 94-21/32 and its yield rose to 4.72%. The 2-year note increased 4/32 to 100-2/32 and yielded 0.98%.

What’s driving prices: The government’s employment report showed a drop of 85,000 jobs in December, missing analysts’ expectations, which called for no change. November’s jobs number was revised to a gain of 4,000 from an initially reported decline of 11,000.

What analysts are saying: "The disappointment in the employment number just feeds into the hands of the [Federal Reserve]," pushing yields lower and Treasurys higher as investors become less optimistic that the Fed will raise rates soon, said Peter Cardillo, a chief market strategist at Avalon Partners.

But in 2010, he predicts rising yields as the economy continues its recovery. He said he wouldn’t be surprised if the yield on the 10-year note reached 4% by January or February.

"I think yields are headed higher," he said. "The more convincing economic news we get, the higher the yields." 

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General Motors is recalling some 22,000 Chevrolet Corvettes, because of potentially leaky roofs, National Highway Traffic Safety Administration said Wednesday.

The recall includes 2005-2007 model year Corvettes with removable roofs and 2006-2007 Corvette Z06s, according to GM.

A problem with the adhesive between the roof panel and the frame could cause them to pull apart, the agency said.

"If there is a complete separation, the roof panel may detach from the vehicle," according to the NHTSA. "If this were to occur while the vehicle was being driven, it could strike a following vehicle and cause injury and/or property damage."

Dealers will install a new design roof panel free of charge to correct the problem, NHTSA said in its recall notice.

The safety recall is expected to begin next month. Owners are being told Chevrolet at 1-800-630-2438 or at www.gmownercenter.com. 

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Did Cyber Monday outshine Black Friday this year?

Early reports suggest that Americans shopped more enthusiastically online for holiday bargains than they did in stores on Black Friday.

Cyber Monday sales rose 14% this year compared to 2008 and consumers also bought nearly 30% more items per order versus last year, according to research firm Coremetrics.

Also, the firm said shoppers bought 10% more items per order online than they did in stores on Black Friday.

"We are seeing good online buying momentum because people are looking for the very best deals, and are going online for the most convenient way to shop," John Squire, chief strategy officer, Coremetrics, said in a report Tuesday.

Clothing and jewelry e-tailers were the most popular shopping destinations on Cyber Monday. Although department stores saw a 33% increase in traffic to their Web sites, the average order volume actually fell 10% versus last year, the report said.

Kindle top seller at Amazon.com

Cyber Monday, which is the e-tailers version of Black Friday, is the day that e-tailers furiously push big discounts, free gift cards, free shipping and any other gimmick they can think of to entice consumers to spend even more of their holiday shopping dollars online.

Amazon.com (AMZN, Fortune 500) spokesman Craig Berman said its wireless Kindle e-reader was the "best-selling item across all of Amazon’s product categories on Monday."

"This November has become the biggest month for Kindle sales since we launched the product two years ago," Berman said. But he declined to disclose how many Kindle units have been sold over that period.

Also, Berman said the e-tailer sold out of its Cyber Monday deal of the day, which was an 8GB iPod Touch for $158.

Other hot sellers Monday included the hugely popular Zhu Zhu pet hamsters, which are sold on Amazon through third party vendors.

Although the retail price of each hamster is $9.99, Berman said some of the hamsters, such as Mr. Squiggles, were selling for as much as $63 each.

4.3 million shoppers a minute

An average of 4.3 million consumers per minute visited shopping Web sites throughout the day Monday in North America, according to Internet monitoring firm Akamai, which tracks traffic trends to more than 270 e-tailers.

The firm, which monitors North American visitors to sites such as American Eagle Outfitters, Overstock.com, QVC.com and eBags.com, said traffic peaked at about 9:30 p.m. ET, reaching 5.1 million visitors per minute.

Pedro Santos, chief strategist for e-commerce with Akamai, said he expects heavy online traffic to continue on subsequent Mondays leading up to the last shipping day before Christmas.

Here’s a sampling of what other sellers were serving up to customers.

Walmart.com is offering nearly 150 specials on such items as flat panel TVs, gaming systems and toys as well as 97-cent shipping on laptops, digital cameras and MP3 players.

Wal-Mart (WMT, Fortune 500) said in a statement the deals are being offered through Friday, but only while supplies last.

For book lovers, Barnesandnoble.com is chopping prices by 50% on all New York Times bestsellers and offering a $10 gift certificate for every $100 purchase.

Still, don’t expect any special deal on Barnes & Noble’s "Nook" eBook reader, which industry experts peg as one of the hottest products this holiday season.

A quick check on the book seller’s Web site showed that if you order the Nook Monday, it won’t be shipped until Jan. 4. And the "extra" incentive to Nook buyers is free shipping and a free gift certificate.

About 96.5 million Americans planned to shop online Monday, up from 85 million in 2008, according to the National Retail Federation.

Despite these expected traffic numbers and heavy discounts, Cyber Monday is still seen as more of a ceremonial start to online holiday shopping.

The busiest online shopping day tends to be later in December, and is the last day that gifts can be shipped to guarantee delivery by Christmas Day.  

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Premier Wen Jiabao on Sunday restated China’s long-standing position that the yuan’s exchange rate should be kept at a reasonable, balanced level.

State television showed Wen meeting a trio of top economic officials from the euro zone, who were making the case for a strengthening of the Chinese currency.

Wen also said China wanted to see stability in the world’s major reserve currencies — a thinly veiled way of saying China is unhappy with the weakening trend of the dollar.

(Reporting by Zhou Xin and Alan Wheatley)

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Retailers are thinking beyond Cyber Monday — a holiday marketing promotion many push for the Monday after Thanksgiving — and trying to spin their discounts into Cyber Weekends or even Cyber Weeks.

Target, Walmart, Toys R Us and others will be running online sales throughout the holiday weekend, with additional sales on Nov. 30, or Cyber Monday. J.C. Penney will offer online sales for items such as clothes and electronics on Monday and Tuesday, and Walmart.com will offer deals starting Monday through Dec. 4.

Retailers are planning more promotions this year, as opposed to last year, when the sudden consumer spending downturn sent online sales down 3 percent, the first decline on record.

The National Retail Federation said Monday that nearly 9 out of 10 retailers plan specific Cyber Monday deals, up slightly from about 84 percent last year. Deals on specific products, one-day sales and free shipping are expected to be the most common promotions.

While the day after Thanksgiving is known as Black Friday, historically the point when retailers start to turn a profit, the following Monday has become known as Cyber Monday, when sellers look to lure holiday shoppers online, either from work or home.

ComScore analyst Andrew Lipsman expects free shipping deals to be key, as companies this year are planning their promotions more carefully so there will be less discounting.

"Psychologically, consumers need to get some sort of a deal on almost every transaction, and free shipping tends to be pretty compelling," Lipsman said.

Lipsman is expecting "marginally positive" online sales growth compared with a year ago.

The Monday after Thanksgiving is typically one of the top 10 busiest online shopping days, but it’s not the busiest day. Last year it was the third-busiest day since a late Thanksgiving holiday led to pent-up demand.

This year Thanksgiving also falls late in November, and Lipsman expects the date to rate similarly high.

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As companies hire extra workers for the holidays, some of these seasonal employees are already wondering: How do I turn this temporary position into something permanent? And, in this economy, can I?

Retailers who are typically big seasonal employers are suffering through a prolonged slump in consumer spending that’s forced many to cut back staffing. Other employers such as the Postal Service have implemented hiring freezes. So, while these companies are employing temporary help, they don’t expect to make many permanent offers.

Still, personnel consultants and company executives say there are plenty of opportunities for hard-working seasonal employees to stay on even after the new year. Shipping giant UPS Inc., for one, says it could eventually hire thousands of workers who make it through the frenetic holiday season.

The first step in nabbing a job: make it clear you’re interested, and looking for a permanent role. Most seasonal workers never get a chance at other jobs because they simply never ask, said Jeff Joerres, the CEO of Manpower.

But be tactful, and don’t pester management. "Make yourself available for additional opportunities," he said. "But don’t overextend yourself."

More tips:

REMEMBER THE BASICS

Even when a job is short term, employees need to behave as they would in a full-time, permanent position. So, arrive on time, follow your schedule and don’t request time off work unless it’s absolutely necessary.

Seasonal workers do to tend to get the less desirable shifts. But to make a good impression, just smile and keep working hard.

"In a temporary employee, that’s the No. 1 thing: reliability and dependability," said Craig Rowley, vice president of the global retail sector for the Hay Group, a consulting firm.

Along with that, show that you’re willing to be flexible. If managers ask you to work longer, do it. Likewise, if they need someone to pick up an extra shift, be the first to volunteer.

Small gestures can go a long way, Joerres said.

"There’s an amazing amount of people who show up for work and want to collect a paycheck and don’t show that they want anything more than that," he said. "And I think that disappoints employers."

AUDITIONING FOR A JOB

A seasonal job, like an internship or temporary gig, is truly a multiweek job interview.

Supervisors watch to see how well employees fit with the company, and they quickly judge how easily workers pick up on new tasks.

That’s because many companies treat seasonal positions as "auditions to find some of their best people," said John Challenger, chief executive of consulting firm Challenger, Gray & Christmas.

To stand out, look for ways to "wow" customers and demonstrate a mastery of the business.

At the high-end kitchen retailer Sur La Table, CEO Jack Schwefel says the best seasonal workers are ones who interact with customers on a personal basis while also explaining the key differences between products, such as a copper-bottomed pot versus a steel one.

Sur La Table will hire about 2,000 seasonal workers this year to work in its stores and distribution warehouses, essentially doubling the size of the company’s work force. Schwefel said up to 20 percent of those could eventually be offered either permanent part-time or full-time jobs.

OPPORTUNITIES EXIST

Companies across a variety of industries say they’re still interested in hiring temporary workers, even amid the recession.

UPS plans to hire about 50,000 seasonal workers this year. Some of those employees will work in the company’s hubs, loading and unloading trucks, while others will be on the road with drivers going door-to-door to deliver packages.

The jobs can be exhausting, given that the holidays represent the company’s busiest time of the year.

But spokeswoman Karen Cole said employees who make it through peak season could be in a prime position to land a permanent job. The company hopes to hire about 20 percent to 30 percent of its temporary work force this year.

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Microsoft Corp.’s stock soared early Friday after the software giant reported quarterly sales and profit that fell from year-ago results but easily beat Wall Street’s forecasts.

Shares of Microsoft (MSFT, Fortune 500) rose more than 10% in early trading. It surged as high as $29.35 at the open, hitting its highest level, on an intraday basis, since June 13, 2008.

The Redmond, Wash.-based software giant said its first-quarter net income fell 18% to $3.6 billion, or 40 cents per share, for the period ended Sept. 30. Analysts polled by Thomson Reuters were expecting earnings of 32 cents per share.

Sales fell 14% to $12.9 billion, topping analysts’ forecasts of $12.3 billion. It was the third consecutive quarter in which sales fell from year-ago levels. In April Microsoft reported that sales fell on a year-over-year basis for the first time in the company’s 23-year history as a public company.

"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," said Microsoft Chief Financial Officer Chris Liddell in a statement. "We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions."

Some analysts said cost-cutting contributed to better-than-expected results, but it’s too soon to declare Microsoft’s recent struggles over.

"Microsoft did a little deck cleaning before the start of its fiscal year," said Carl Howe, analyst at Yankee group. "They may have beat expectations, but if I looked at this just to analyze the income statement, Microsoft still had a tough quarter."

Windows 7 expected to be a hit. The earnings announcement topped off a high-profile week for Microsoft, in which it unveiled its new operating system, Windows 7.

Microsoft has been hurt in recent quarters by slumping demand for PCs. But many signs point to a rebound in computer sales, including this week’s Windows 7 launch. Though analysts don’t expect the new operating system to boost PC sales significantly in 2009, a pickup in sales is anticipated for 2010.

Microsoft said PC sales were better than expected in the last quarter, as sales ticked up by between 0% and 2%. The company said businesses will slowly start to buy new computers starting next year and into 2011.

Sales of Windows fell 38.8% in the quarter and profits from the operating system division were sliced in half. That was mostly due to a deferral of $1.5 billion in revenue from Vista sales to provide customers with upgrade coupons for Windows 7.

The company said Windows sales set an all-time record in September — an encouraging sign for the company and for the success of Windows 7. Microsoft said it will realize $1.7 billion of Windows 7 revenue in the current quarter — $1.5 billion from last quarter and $200 million from the previous quarter.

"What they really did was ensure that in this [current] quarter, that division will have very nice looking results, since they are pulling in deferred results from last quarter," said Howe. "So the [current] quarter may look much better as a result."

Cost-cutting drives profits higher: Other divisions posted healthy profit increases, largely as a result of cost-cutting.

In January, Microsoft announced its first mass layoffs in its 34-year history in an effort to bolster its bottom line. The company slashed 5,000 positions, a move that is expected to be completed by mid-2010.

The company’s headcount was down 4% in the quarter from a year ago — the largest yearly staffing decline in the company’s history.

Revenue from its entertainment and devices division, which includes the Xbox 360 and the new Zune HD, was unchanged from last year, but profit nearly doubled. The company’s server unit also had flat revenue, but profits rose 23%.

The company still failed to turn a profit in its online services business though. That division, which includes MSN, lost $480 million in the quarter. Sales in the division were down 6% from the same quarter a year earlier. The company said search advertising revenue continued to decline, but the industry is showing signs of stabilization.

Microsoft unveiled Bing, its new search engine, in June and agreed to an advertising revenue-sharing partnership with Yahoo (YHOO, Fortune 500) that will begin in 2010. Bing’s launch has been considered a success so far, but the company still trails industry leader Google (GOOG, Fortune 500) in the online advertising market.  

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