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Iran’s powerful Revolutionary Guard began military exercises Saturday in the country’s south, the latest show of force after threats to close the strategic Strait of Hormuz in retaliation for tougher Western sanctions.

Plans for new Iranian naval games in the Persian Gulf off the country’s southern coast have been in the works for weeks. State media announced new maneuvers in southern Iran involving ground forces, but it was not immediately clear whether they were part of the planned naval training missions scheduled for this month or a separate operation.

The latest military maneuvers got under way following stern warnings by Iran’s Supreme Leader, Ayatollah Ali Khamenei, about any possible U.S. or Israeli attacks against Tehran’s nuclear facilities. It also comes after Western forces boosted their naval presence in the Gulf led by the American aircraft carrier USS Abraham Lincoln.

Iran officials and lawmakers have repeatedly said that their country would close the Strait of Hormuz at the mouth of the Persian Gulf in retaliation for sanctions that affect Iran’s oil exports. They have as yet made no attempts to disrupt shipping through the waterway, the route for one-fifth of the world’s crude oil, and the U.S. and allies have said they would respond swiftly to any attempts at a blockade.

Last month, Iran’s navy wrapped up 10 days of exercises in the Gulf, but the Revolutionary Guard _ which is directly under control of the supreme leader _ represents a significantly stronger military force and controls key programs such as missile development. Iranian state media announced the new maneuvers, but gave no further details.

Khamenei, in a speech nationally broadcast on Friday, staked out a hard line after suggestions by Israel that military strikes are an increasing possibility if sanctions fail to rein in the Islamic Republic’s nuclear program.

He pledged to aid any nation or group that challenges Israel and said any military strikes would damage U.S. interests in the Middle East “10 times” more than they would hurt Iran. The comments also may signal that Tehran’s proxy forces _ led by Lebanon’s Islamic militant group Hezbollah _ could be given the green light to revive attacks on Israel as the showdown between the archfoes intensifies.

The West and its allies fear Iran could use its uranium enrichment labs _ which make nuclear fuel _ to eventually produce weapons-grade material. Iran insists it only seeks reactors for energy and medical research.

Israel has so far publicly backed the efforts by the U.S. and European Union for tougher sanctions that target Iran’s crucial oil exports. But Israeli leaders have urged even harsher measures and warn that military action remains a clear option despite Western appeals to allow time for the economic pressures and isolation to bear down on Iran payday loans with no fax.

Iran’s oil minister repeated claims that an EU oil embargo will not cripple Iran’s economy, claiming Saturday that the country already has identified new customers to replace the loss in European sales that accounted for about 18 percent of Iran’s exports.

Rostam Qassemi also reinforced Iran’s warning to Saudi Arabia and other fellow OPEC members against boosting production to offset any potential drop in Tehran’s crude exports, saying the cartel should not be used as a political weapon against a member state.

Although Israel has raised the strongest hints that it is likely to start a military campaign, Khamenei reserved some of his strongest comments for Israel’s key U.S. ally.

“A war itself will damage the U.S. 10 times” more in the region, said Khamenei.

Khamenei claimed Iran, however, could only emerge stronger. “Iran will not withdraw. Then what happens?” asked Khamenei. “In conclusion, the West’s hegemony and threats will be discredited” in the Middle East. “The hegemony of Iran will be promoted. In fact, this will be in our service.”

On Thursday, Israel’s defense minister, Ehud Barak, suggested the world is increasingly ready to consider a military strike if sanctions fail. The head of the country’s strategic affairs ministry, Vice Premier Moshe Yaalon, also suggested Iran’s main military installations are still vulnerable to airstrikes _ even as Iran starts up a new uranium enrichment facility deep in a mountainside bunker south of Tehran.

Yaalon’s comments appear to reinforce earlier suggestions by other Israel officials that the window for a possible attack is closing and Israel would need to strike by summer to inflict significant setbacks on Iran’s nuclear facilities. The officials spoke on condition of anonymity under standing guidelines.

At Ramstein Air Base in Germany, U.S. Defense Secretary Leon Panetta said sanctions remain the best approach to pressure Iran. But he told U.S. airmen Friday that Washington keeps “all options on the table and would be prepared to respond if we have to.”

Khamenei answered by repeating Iran’s declarations that it will never roll back its nuclear program, which he had earlier said was now part of the country’s “identity” and a cornerstone of its technological endeavors. On Friday, Iran said it successfully sent a small satellite into orbit in the third such launch in recent years, state media reported.

“From now on, in any place, if any nation or any group confronts the Zionist regime, we will endorse and we will help. We have no fear expressing this,” said Khamenei, using the phrase widely used by Iran’s leader to describe Israel.

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Dow Chemical Co. said Thursday it posted a loss in the fourth-quarter because of a one-time charge that caused it to pay higher taxes at its Brazilian operations.

Shares fell nearly 3 percent in trading before the opening bell.

The Midland, Mich. company, the nation’s largest chemical maker, reported a loss of $20 million, or 2 cents per share, compared with a year-ago profit of $426 million, or 37 cents per share. Excluding a charge of 27 cents per share, Dow would have earned 25 cents per share in the quarter.

Revenue rose 2 percent to $14.1 billion.

Results were below Wall Street’s expectations. Analysts polled by FactSet expected a profit, excluding items, of 31 cents per share on revenue of $14 Business Card Holders.18 billion.

Volume fell 3 percent in the quarter. Demand slipped as customers in North America, Europe and other regions worked through existing inventory instead of replenishing their stockpiles. Dow says it saw global economic “deterioration” in the period, with “considerable weakness” in Western Europe. Europe accounts for a quarter of the company’s sales.

Prices rose 5 percent, offsetting higher feedstock and energy costs.

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Former U.S. Treasury Secretary Lawrence Summers said the U.S. economy is not yet at

The world

Raw fish and cough medicine may not seem like they should occupy the same store, but a select few Walgreens now carry both.

In 2009 Walgreen Co., based in a Chicago suburb, announced it would elevate food offerings at some of its most prominent stores, in downtown Chicago, on Wall Street and elsewhere. Those stores – designed to trumpet that the century-plus-old pharmacy chain was entering new, more rarified terrain – now have sushi bars, $400 bottles of wine, cigar humidors and made-to-order smoothies.

But the company also promised it would fill more shelf space, including here in St. Louis, with cheaper, less esoteric offerings, especially in areas where low-income residents have little access to nutritious or fresh food. Walgreens plans to turn at least 500 of its 7,800 U.S. stores, most in low-income neighborhoods, into what the company is calling “food oases.”

“We found that in lower-income areas, in food deserts, that grocery stores have moved out,” said Bryan Pugh, the company’s vice president of merchandising. “It’s a very strategic initiative. Food brings the shopper in more often.”

So far the company has expanded offerings, including fresh produce, at a modest 35 stores in Chicago, Detroit, San Francisco, Oakland and Indianapolis. But it plans to expand to other cities over the next five years. The company aims to boost food offerings in some of its 110 St. Louis-area stores by 2013, Pugh said, noting that it has already rolled out new in-house food brands that are on store shelves already.

“We’re overhauling all our brands,” Pugh said.

Walgreens is not the only retailer who says it will bring fresh produce to under-served areas in St. Louis and beyond.  Save-A-Lot stores have said they will open 500 stores in these neighborhoods in the five years, and Wal-Mart has made a similar commitment, saying it will open as many as 300 by 2016.  But Walgreens already has a major presence in low-income urban areas, with stores already in place, making its efforts easier to execute, analysts note.

Walgreens’ move, analysts say, could help the company keep customers Walgreens is losing after the company’s split from pharmacy benefits manager Express Scripts. Walgreens stands to lose billions in sales as customers fill their prescriptions elsewhere.

“It’s really interesting timing, because Walgreens can re-establish themselves with people who can no longer fill their prescription there,” said supermarket analyst, Phil Lempert. “It’s: What can we sell them to keep them coming to our store, until they make the transition to Medicare?”

While Walgreens acknowledges that the move is strategic, it also says it has good intentions of providing fresh produce to nutrition-poor areas where fast food is usually the only source of calories. Nutritionists and critics, however, question how successful that effort could be.

“A lot of this is overblown,” said David Livingston, an analyst and supermarket industry researcher. “They already had some food items. They’re adding a few more. They’re adding a few more perishables. Are they really making a difference? I don’t think so.”

Walgreens says it will expand the space it devotes to food by 35 to 40 percent in some of its stores. But, Livingston notes, that translates to roughly 400 square feet. “That’s 20 by 20,” Livingston said. “That’s the size of my bathroom.”

Livingston and other analysts point out that grocery stores pulled out of these neighborhoods for a reason. “If there’s money to be made selling fresh produce, grocery stores would have figured it out,” he said. “I wonder what they’re thinking.”

Marjorie Sawicki, and assistant professor of nutrition and dietetics at Saint Louis University, said she believes Walgreens produce may make a small dent in nutrition-poor diets.

“Where we have food deserts, if there are fruits and vegetables, it might help, because there’s a Walgreens on every block,” Sawicki said. “If they displace items that are filled with sodium and fat, then it could have a benefit. It depends on how they emphasize the food.”

Bringing healthy food to under-served neighborhoods will require a more holistic approach, Sawicki says. “I think it’s a Band-Aid,” she said. “What we need to be looking at is creating community investment so people can access healthy food at a fair price and support the person who grew it. But that’s going to take time.”

Sawicki pointed to other efforts to bring produce to under-served areas, such as The North City Food Co-Op, as better models.  Other new additions to the market landscape in St. Louis food deserts include YOURS Market, which opened in the Baden neighborhood in late 2010.

Still, Walgreens sees an opportunity.

The company did extensive research to determine which stores should sell more food. “Different stores have different trends,” Pugh said. “If I’m on a corner, near a Dominick’s, a Target and a Walmart , I’ll probably do better with beauty (products) there. I’ll look at my data by category and see if I’ve got traffic and I’m selling food. You can’t put fresh food in a store that’s not busy.”

The company’s plan, Pugh said, is not to expand the stores, but to devote more existing space to food. “We’re already in those areas,” he said. “We are the health care oasis there.”

Lempert says he believes that’s a smart strategy.

 “I think it’s fascinating that for years drug chains had the lowest price for milk, that was their loss leader – what they did to get people in,” Lempert said. “Now they’ve leap-frogged milk, and said we can do this bigger and better.”

“We buy food 2.2 times a week, so if they can get more traffic in these stores, they sell more product,” Lempert added. “Supermarket sales are either flat or declining, and if you look at drug-store food sales, they’re through the roof.”

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A Qatar-owned company says it has taken over the famous Raffles Hotel Singapore and an affiliated luxury hotel in Paris in the latest high-profile acquisitions by the energy-rich Gulf state.

The Qatar National Hotels Co. said Saturday that it recently took ownership of the 125-year-old Raffles Hotel Singapore and Le Royal Monceau Raffles hotel in Paris.

It did not disclose financial terms in the deal with Toronto-based Fairmont Raffles Hotels International, which had owned both hotels one hour payday loan.

State-owned Qatari companies have been snapping up investments at a brisk pace in recent months, including stakes in European energy companies, Germany’s largest builder Hochtief AG and majority ownership in the French football team Paris Saint-Germain.

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High unemployment has sent many Americans back to school, and they’re taking on big debt to finance their education. 

Americans now owe more on in student loans, $750 billion, than on their credit cards.

Lenders are getting very worried about that.  Sixty-seven percent of bank risk managers expect a rise in student loan delinquencies, according to a new survey for FICO, the credit scoring company, and the Professional Risk Managers Association.  That number is 17 points higher than last summer.

You can find FICO’s press release here and the study here.

Many for-profit private trade schools, the kind that advertise on afternoon TV, have online payday advance.stltoday.com/business/columns/jim-gallagher/students-should-look-at-loan-default-rates-to-judge-colleges/article_fa88b67f-51e7-5e16-b1ca-1688d2ee0a6c.html”> student loan default rates of over 20 percent.  Those schools often charge outrageous tuition, and the high default rates indicate that many students are worse off for attending.

The best deals in vocational training are found at community colleges, where tuition is cheap. 

Those looking for a bachelors degree should consider whether a high-tuition private university really delivers value that justifies its price.  State universities are usually cheaper.

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China and the United States have pledged during a visit by Treasury Secretary Timothy Geithner to cooperate on boosting the global economic recovery, but Chinese backing for U.S. sanctions on Iran’s oil industry appeared unlikely.

China buys almost one-third of Iran’s oil exports and has rejected the U.S. sanctions as a tool to rein in Tehran’s nuclear program. That sets Washington up for a public setback if the government of the world’s second-largest economy refuses to cooperate.

Geithner was expected to make the U.S. case for sanctions in meetings Wednesday with Premier Wen Jiabao, Vice President Xi Jinping _ who is in line to become China’s next leader _ and Vice Premier Li Keqiang, another rising star.

Geithner met with his counterpart, Vice Premier Wang Qishan, on Tuesday night. He said he told Wang that the two sides “share so many important interests, and among those are increasing our cooperation on global economic issues.”

China’s official Xinhua News Agency said China and the United States pledged to further cooperate to boost the global economic recovery, and quoted Wang as saying the world economic situation is still “very complex and grim.”

Wang also called on the United States to loosen export controls of high-tech products to China, one of China’s complaints about the countries’ trade relationship. U.S. critics, meanwhile, say Chinese currency controls keep the yuan undervalued and give its exporters an unfair advantage, distorting trade at a time when Washington and other governments are under pressure to bring down unemployment.

China’s trade surplus with the United States widened 24.2 percent to $17.4 billion in December, according to data released Tuesday.

Geithner also is due to visit Tokyo, another major buyer of Iranian oil, for talks after he leaves Beijing on Thursday morning.

China has criticized U.S. sanctions on Iran, approved by President Barack Obama on New Year’s Eve, as improper and ineffective. Beijing supported U.N. sanctions on Iran’s nuclear program but says action should be multilateral.

The sanctions would target Tehran’s oil industry by barring financial institutions from the U.S. market if they do business with Iran’s central bank.

China’s oil imports “have nothing to do with the nuclear issue,” a Chinese deputy foreign minister, Cui Tiankai, said Monday.

“We should not mix issues with different natures, and China’s legitimate concerns and demands should be respected,” Cui said.

Analysts in Beijing said China has no reason to go along with the sanctions. “China does not want to be seen as helping the U.S. when China’s own interest is concerned,” said Wang Lian, an Iran expert at Peking University’s School of International Relations.

He said Chinese opposition might be reinforced by Washington’s latest military strategy report published last week. It singles out Beijing as a power with the potential to affect the U.S. economy and security.

Industry analysts say that even if China agreed, it would face formidable challenges in trying to replace Iran as an oil source.

China’s fast-growing economy is the world’s biggest energy consumer and imports half its oil. Some 11 percent comes from Iran, or about 600,000 barrels per day in November, according to energy market analysts Argus Media.

Still, Geithner’s trip might not be wasted, because Washington is only starting a campaign to promote its sanctions, Peking University’s Wang said. He said China might face pressure to cooperate if other governments agree to comply.

“The U.S. is not wasting their efforts,” Wang said. “Pressuring China is what they can do, but it is fairly difficult to get China to stand on their side.”

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The Hyundai Elantra edged out the Ford Focus and Volkwagen Passat Monday to win the 2012 North American Car of the Year award.

The prestigious industry award was announced at the start of the North American International Auto Show in Detroit, which hosts media previews this week and opens to the public on Saturday.

The Land Rover Range Rover Evoque won the North American Truck of the Year, beating the BMW X3 and Honda CR-V.

Jaguar Land Rover North America President Andy Goss said it’s a tremendous honor and humbling for the company, which has had finalists but never a winner in the 19th annual independent awards program.

“We’re going to market the hell out of this,” said a smiling Goss on a stage above the four-cylinder sport-utility vehicle. The U.S. is the world’s largest Range Rover market.

Fifty automotive journalists voted on the winning vehicles from a group of finalists, and the vehicles must be all new or substantially changed to be eligible. Organizers accept no advertising, though automakers capitalize on the marketing value of the honors low interest rate personal loans.

John Krafcik, Hyundai’s North American CEO, said the award won’t help the compact’s sales much because the company already is selling as many Elantras as it can make at its factory in Montgomery, Ala. But the award should help solidify the brand’s image in the eyes of the American public, especially in the highly competitive compact car segment.

“It should be helpful for our brand going forward,” he said.

The company is looking at ways to boost production at the Montgomery plant, but Krafcik said Hyundai plans to focus on maintaining quality at the factory before deciding on any increases.

Hyundai sold more than 186,000 Elantras last year, nearly a 41 percent increase over 2010 figures.

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WINDING DOWN: After 58 years of selling music, Webster Records is pulling the plug.

The store at 117 West Lockwood Avenue in Webster Groves will shut its doors on Jan. 31, Bill Wondracek, a clerk, said today.

The store has mainly been reduced to selling rock ‘n’ roll CD’s to teens over the past few years, despite having a history of specializing in classical, jazz and pop music, much of it on vinyl, Wondracek added.

Jennifer Bellm has owned the shop for about five years. She was not available for comment.

Prior to that, it was owned by Dan Warner who sold it when he became part of the team that was involved in trying to revive the Switzer’s Licorice brand low rates payday advance.

Until the shop is shuttered, remaining inventory will be on sale, store manager Jim Lovins said in an email. Starting today it’s 30 percent off of retail and prices will be discounted through the month, he added.

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