Iowa’s seasonally adjusted unemployment rate dropped to 4.2 percent last month from a revised 4.5 percent in August as workers affected by the June floods returned to work. The state’s unemployment rate is up from 3.8 percent in September 2007, but remains well below the U.S. rate of 6.1 percent. Total employment rose to 1,614,200 from 1,605,700 in August, but nonfarm employment fell to 1,525,900, 400 jobs short of August’s record. It is the first time nonfarm jobs have dropped since September 2004. Education and health services declined the most, with 700 cuts, mostly in education. Financial activities fell by 400, but the government added 300 jobs.

Next month, Meredith Corp. plans to introduce Mixingbowl.com, a social networking site centered on food, with a strong social networking component, MediaWeek reported. This is one of its first networks outside its core magazine brands.

Home sales in September 2008 were on target with last year’s levels, according to figures by the Des Moines Area Association of Realtors, which tracks listings in Dallas, Polk and Warren counties. The number of active listings was 6,069, down from nearly 7,000 a year ago. The average sale price dropped by about $5,000 to $165,923. Homes were on the market an average of 86 days, versus 97 days in August. Pending home sales activity also jumped as buyers took advantage of low home prices and affordable interest rates, the organization said. The Pending Home Sales Index rose 7.4 percent to 93.4 from a revised reading of 87.0 in July.

The U.S. Treasury Department has hired PricewaterhouseCoopers LLP and Ernst & Young to assist it in implementing the Troubled Asset Relief Program authorized under the Emergency Economic Stimulus Stabilization Act. The firms will help the department with accounting and internal controls services needed to administer the portfolio of bad debt the department will purchase from companies, including mortgage-backed securities. The agreements last until Sept. 30, 2011. Initial orders are worth $191,469.27 for PricewaterhouseCoopers and $492,006.95 for Ernst & Young.

Deere & Co. shares fell 2.1 percent yesterday to $38.60 after an analyst downgraded the company on fears that the global credit freeze may hurt the company, the Associated Press reported. In a note to investors, Morgan Stanley analyst Robert Wertheimer said his change is based on “rising concern that a credit crunch in Brazil will lead to a reversal in sales, either directly through lack of credit to farmers or indirectly through weaker confidence.” He cut his rating on Deere to “equal-weight” from “overweight” and lowered his price target to $50 from $60.

General Growth Properties Inc., owner of Jordan Creek Town Center, is looking to sell up to $2 billion of preferred stock to private-equity firms, hedge funds and other investors to help lower its debt, including $1.2 billion in loans maturing in mid-November, Reuters reported. According to The Wall Street Journal, the company’s bankers at Goldman Sachs Group Inc. have approached Blackstone Group LP, Colony Capital LLC and Vornado Realty Trust, but it was unclear if there were any takers. The company said in late September that it would try raising capital on a corporate level versus a property level.

ING Groep NV has reached an agreement to sell its Taiwanese life insurance business for $600 million to Fubon Financial Holding Co. Ltd. The move is part of ING’s efforts to refocus on businesses that generate the highest returns. The announcement came a day after ING reached an agreement with the Dutch government for the government to invest $10 billion in the company. As part of the deal, ING will be paid in shares and subordinated debt securities of Fubon Financial and will be a 5 percent shareholder of Fubon Financial. The transaction will result in a book loss of 427 million euros after taxes, the company said. The deal is subject to regulatory approval and is expected to close by the end of first quarter 2009.

A Wachovia Corp. investor has filed a lawsuit to block the company’s sale to Wells Fargo & Co., alleging that the $15 billion sale price is too low and the shareholder vote will be unfair, the Charlotte Business Journal reported. The class-action suit, which only names shareholder Irving Ehrenhaus, claims Wachovia has “locked up the vote in favor of the merger” by giving Wells Fargo stock representing nearly 40 percent of Wachovia voting shares as part of the agreement. Wachovia spokeswoman Christy Phillips-Brown said the suit is “without merit and we intend to defend the case vigorously.” The suit filed in North Carolina Business Court asks the judge to issue temporary and permanent injunctions against the deal.

Flexsteel Industries Inc. reported a net loss of $0.7 million, or 11 cents per share, for the fiscal first quarter, which ended Sept. 30, compared with net income of $1.2 million, or 18 cents per share, in the prior-year period. The results were affected by a pre-tax charge of about $1.4 million, or 13 cents per share, related to closing two of its manufacturing facilities. Without these charges, Flexsteel would have had a net income of $0.1 million, or 2 cents per share. Sales were down 9.4 percent to $91.4 million from $100.9 million a year ago, with recreational vehicle sales down 62.1 percent from the prior year. The company said it expects weak conditions to continue and will adjust its operations and work force to meet lower demand for its products. Its work force has been reduced by about 15 percent over the past year through layoffs. Flexsteel hosted a conference call at 10:30 a.m. To hear a replay, call (800) 642-1687 and enter ID# 65674887.