GM posts loss on North America slump

DETROIT (Reuters) - General Motors Corp on Tuesday posted a quarterly loss reflecting a slump in its North American market and losses at former finance subsidiary GMAC.


Source: Reuters: Business News | 12 Feb 2008 | 12:21 pm

Food and petrol push up inflation

UK inflation increased to 2.2% in January, up from 2.1% in December, driven by rises in food and petrol prices.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 12:16 pm

Marsh and McLennan's profit falls 62%

Read full story for latest details.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 12:14 pm

Futures point to higher open on GM results

NEW YORK (Reuters) - Stock index futures rose on Tuesday and were set to extend Monday's rebound from the past week's losses after General Motors reported higher-than-expected results and reached an agreement with the United Auto Workers union.


Source: Reuters: Business News | 12 Feb 2008 | 12:13 pm

SmartMoney Magazine: What to Do With $100,000

With more people receiving windfalls, we look at the wisest ways to spend them.


Source: SmartMoney.com | 12 Feb 2008 | 12:12 pm

Marsh's 4Q Profit Falls 62 Percent

Marsh & McLennan has reported a smaller profit for the last three months of 2007 on weakness in its risk and insurance services business. New York-based Marsh & McLennan Inc. said...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 12:09 pm

Schering-Plough Posts $3.4B Loss

Drug maker Schering-Plough says it lost about $3.4 billion in the fourth quarter of 2007 because of accounting rules related to the purchase of Organon BioSciences. Kenilworth,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 12:09 pm

GM Has Biggest-Ever Automotive Co. Loss

General Motors Corp. is reporting the largest annual loss ever for a U.S. automotive company as it offers a new round of buyouts to 74,000 U.S. hourly workers. GM says Tuesday it lost...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 12:08 pm

GM Offers Buyouts to 74K Hourly Workers

General Motors Corp. is offering a new round of buyouts to 74,000 U.S. hourly workers. GM announced the buyouts Tuesday morning as it was releasing its fourth-quarter and full-year...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 12:08 pm

GM Posts $38.7B Loss

General Motors Corp. is reporting the largest annual loss ever for a U.S. automotive company. GM said Tuesday it lost $38.7 billion in 2007. The loss largely was due to a third-quarter
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 12:07 pm

Schering-Plough reports loss on merger charges

NEW YORK (Reuters) - Drug maker Schering-Plough Corp on Tuesday reported a fourth-quarter loss as special charges from its acquisition of Organon Biosciences late last year offset sharply higher sales.


Source: Reuters: Business News | 12 Feb 2008 | 12:03 pm

Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 12:01 pm

CrackBerry Withdrawal

Research in Motion, maker of the ubiquitous BlackBerry handheld device, reported a "critical severity" outage in its email service on Monday afternoon.

"This is an emergency notification regarding the current BlackBerry Infrastructure outage," R.I.M. support account manager Bryan Simpson said in an e-mail.

Millions of users in the United States were affected, regardless of provider. Users reported BlackBerry service failing at about 3 p.m. New York time.

A spokesman for AT&T said nearly four hours later that service had been restored, according to Bloomberg News.

"Obviously, the important thing is that it was fully restored quickly,'' Jim Balsillie, co-chief executive of Research In Motion, said today in an interview with Bloomberg Television from Barcelona. ``It was pretty focused and isolated and we recovered well.''

This is not the first time the company has had a major BlackBerry service crash. In April 2007, BlackBerry email service across North America failed, leaving thousands of users unable to send and receive emails.

At the time of last year's crash, Balsillie said that such disruptions were "very rare" and pledged that the company would prevent such a service failure from happening again.

Unfortunately for Balsillie and R.I.M., the company appears to have been unable to do so.

The Wall Street Journal points out that "both outages point to vulnerabilities in R.I,M,'s delivery model, which has also been one of the secrets of its success."

BlackBerry mails are routed through a network operating center, where they are encrypted and sent out through the cellular provider networks.


Related Links
Code Black: Portable Email Network Crashes Again
BlackBerry's Long March Into China
One World, One Phone?


Source: Portfolio.com: Top 5 | 12 Feb 2008 | 12:00 pm

Yahoo wins over T-Mobile Europe, displacing Google

BARCELONA (Reuters) - Yahoo Inc has displaced Google as preferred provider of Web services to mobile operator T-Mobile in northern and central Europe, Yahoo and T-Mobile said on Tuesday.


Source: Reuters: Business News | 12 Feb 2008 | 11:59 am

US Stocks Head for Higher Open

Stocks headed for a higher open Tuesday as investors awaited fourth- quarter results from General Motors Corp. and digested a decision by diversified manufacturer 3M Co. to raise its...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 11:55 am

Credit Suisse Profit Down on Write-Downs

Credit Suisse Group, Switzerland's second largest bank, said Tuesday its fourth-quarter profit dropped 72 percent because of writedowns for investment banking and money-market funds. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 11:53 am

Xstrata slips on fears suitor Vale to walk away

LONDON (Reuters) - Shares in Xstrata slid on Tuesday after a newspaper reported the Anglo-Swiss miner had rejected a $76 billion takeover approach from Brazil's Vale and that its suitor was close to walking away.


Source: Reuters: Business News | 12 Feb 2008 | 11:49 am

European shares unearth gains

Europe's main stock markets rebounded on Tuesday, with London lifted by heavyweight mining shares after a recovery by Wall Street overnight. London's FTSE 100 index of top...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 11:49 am

Profits at Credit Suisse plunge

Credit Suisse reports a 72% dive in quarterly profits amid an "extremely challenging environment".
Source: BBC News | Business | World Edition | 12 Feb 2008 | 11:46 am

CML calls for higher stamp duty threshold

Pent up demand from first-time buyers may do nothing to shore up the ailing property market, unless the Government raises the stamp duty threshold in next months' Budget, the Council of Mortgage Lenders has indicated.
Source: Telegraph Business | 12 Feb 2008 | 11:45 am

Uneasy mood on Wall Street

U.S. stock futures were mixed early Tuesday as investors remained nervous about the widening scope of the credit fallout and awaited a string of earnings reports and the next move in the Microsoft-Yahoo battle.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 11:44 am

German economic sentiment lifts

German investor confidence unexpectedly improves despite falling exports and signs of a global slowdown.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 11:38 am

Dollar slips against euro after positive German investor survey

The dollar eased against the euro on Tuesday after a largely positive survey on investor confidence in Germany, which is the eurozone's biggest economy. In European trading,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 11:36 am

US Dollar Up in Europe

The U.S. dollar was mostly higher against other major currencies in European trading Tuesday morning. Gold rose in Zurich but shaded lower in London. The euro traded at $1.4515, down...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Feb 2008 | 11:36 am

Hasbro sees cost of China-made toys rising: report

NEW YORK (Reuters) - Hasbro Inc , the second-largest U.S. toy company, expects a 14 percent to 15 percent increase this year in the costs of made-in-China products due to higher labor, commodity and currency costs, according to a story on the Financial Times Web site.


Source: Reuters: Business News | 12 Feb 2008 | 11:31 am

RIM may offer touchscreen BlackBerry

BARCELONA (Reuters) - Research In Motion may bring out a touchscreen version of its popular BlackBerry e-mail device if customers want it, according to co-chief executive Jim Balsillie, who expects to deliver new high-speed devices soon.


Source: Reuters: Business News | 12 Feb 2008 | 11:27 am

Credit Suisse profit sinks on writedowns

Read full story for latest details.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 11:25 am

RIM reports "critical" BlackBerry outage

TORONTO (Reuters) - A major outage hit BlackBerry users in North America on Monday, cutting off wireless e-mail for everyone from busy executives to political campaign staff on the eve of three U.S. presidential primaries.


Source: Reuters: Business News | 12 Feb 2008 | 11:16 am

Pound weakens after U.K. inflation data

LONDON (MarketWatch) -- The British pound softened against the U.S. dollar and the euro Tuesday after data showed consumer inflation rose less than expected compared to a year ago, though it remains above the Bank of England's long-term target.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 11:08 am

Credit Suisse reduces subprime writedowns (Reuters)

Credit Suisse CEO Brady W. Dougan attends the 2007 annual results of the bank in Zurich February 12, 2008. (Christian Hartmann/Reuters)Reuters - Credit Suisse trimmed full-year subprime writedowns to 2.0 billion Swiss francs ($1.82 billion) but its stock fell as investors took fright at the bank's remaining exposure to the credit crisis.



Source: Yahoo! News: Business | 12 Feb 2008 | 11:05 am

Credit Suisse reduces subprime writedowns

ZURICH (Reuters) - Credit Suisse trimmed full-year subprime writedowns to 2.0 billion Swiss francs ($1.82 billion) but its stock fell as investors took fright at the bank's remaining exposure to the credit crisis.


Source: Reuters: Business News | 12 Feb 2008 | 11:05 am

Illegal downloaders 'face UK ban'

Internet access may be cut for people who illegally download music and videos under government proposals.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 10:58 am

Plavix sales boost Sanofi-Aventis net

Pharmaceutical firm says it expects earnings per share to rise 7% in 2008 before exceptional items.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 10:54 am

U.S. stock futures flat to lower before GM results

U.S. stock futures were a touch softer on Tuesday, ahead of results from General Motors that are expected to show that America’s top automaker is being hurt by the subprime-mortgage losses and a reluctant U.S. consumer.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 10:45 am

Recession won't wreck your retirement

With the 'R' word looming, a lot of investors are ready to jump ship to shield their retirement. Look before you leap, says Money Magazine's Walter Updegrave.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 10:44 am

Job fears as brewery set to close

The UK's largest brewer announces it is closing its operation in Berkshire putting 362 jobs there at risk.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 10:36 am

A wrinkle in the Botox story

The Food and Drug Administration may have caused pandemonium on Park Avenue and Rodeo Drive with its announcemenet late last week of a safety review of the famed cosmetic therapy, Botox. But on Wall Street at least a few financial analysts are advising investors to buy shares of Botox maker Allergan while they're cheap.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 10:32 am

Earnings: Nowhere to go but up

Poor results from the banking sector in the fourth quarter are likely to lead to the biggest drop in quarterly profits for large U.S. companies in six years.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 10:19 am

Xstrata slips on fears suitor Vale to walk away (Reuters)

CEO of CVRD (Companhia Vale do Rio Doce, Brazilian mining) Roger Agnelli poses at Othon Hotel in Rio de Janeiro, November 29, 2007. Miner Xstrata has rejected a cash-and-shares takeover approach from Brazil's Vale pitched at just under 40 pounds a share, or 39 billion pounds ($76 billion), the Financial Times said. (Bruno Domingos/Reuters)Reuters - Shares in Xstrata slid on Tuesday after a newspaper reported the Anglo-Swiss miner had rejected a $76 billion takeover approach from Brazil's Vale (VALE5.SA) and that its suitor was close to walking away.



Source: Yahoo! News: Business | 12 Feb 2008 | 10:17 am

Microsoft shoots back at Yahoo

Microsoft Corp. fired back at Yahoo on Monday, signaling that it wasn't planning to back down and calling Yahoo's decision to reject its $45 billion unsolicited bid "unfortunate."


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 10:16 am

Blackberry back after breakdown

The Blackberry mobile e-mail service returns to normal after a breakdown on Monday, hit US and Canadian users.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 10:07 am

Sterling drops after inflation data

Sterling lost ground on Tuesday after consumer price inflation fell by more than expected in January, heightening expectations that the Bank of England would cut UK interest rates. Data showed consumer...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 9:59 am

Oil and mining groups lead FTSE higher

London stocks were modestly higher on Tuesday, supported by hopes that UK interest rate cuts were still on the Bank of England's agenda after surprisingly weak inflation data. By mid morning, the FTSE...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 9:57 am

Reporter's Notebook: Android-based phones draw crowds

Google’s Android software for phones debuted this week in Barcelona, with several chipmakers demonstrating how the software would look on prototypes at Mobile World Congress, the telecom industry’s largest annual gathering.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 9:55 am

Oil giants BP, Shell offset insurers in London

London shares were lifted by gains from oil and gas producers on Tuesday, with BP and Royal Dutch Shell shares strengthening as oil prices stayed near recent highs, and as consumer inflation rose at a slower pace than expected in January.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 9:52 am

Munis: The new power portfolio

If there's a lesson to be learned from the stock market's recent slide - triggered by massive losses on exotic and risky mortgage-backed securities - it's that there's nothing wrong with simple, boring investments. Like girders supporting a bridge, plain-vanilla bonds can help buttress a portfolio in a shaky market such as this.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 9:31 am

Credit Suisse profit slumps after write-downs

Credit Suisse Group on Tuesday reported a 72% drop in fourth-quarter net income, as its investment-banking and asset-management divisions suffered from the subprime-related credit crunch.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 9:30 am

European equities cautiously higher

European equities were slightly higher on Tuesday, but the weight of the gains were defensive in nature as investors remained cautious about financial stocks. By mid morning, the FTSE Eurofirst 300 was...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 9:28 am

Scottish & Newcastle axes Berkshire brewery

Scottish & Newcastle has announced plans to shut down its Berkshire brewery and axe as many as 362 jobs, in order to save up to £13m.
Source: Telegraph Business | 12 Feb 2008 | 9:25 am

Hong Kong leads Asian bounce; Tokyo unsettled

Most Asian markets rebounded Tuesday as investors, encouraged by an overnight advance on Wall Street, sought out bargains after a string of losses.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 9:10 am

Asian stocks lose momentum

Most Asian markets closed little changed on Tuesday, after initially rising as more investors returned from their lunar new year holidays and took heart from a 0.6 per cent bounce on Wall Street overnight....
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 9:05 am

Oil and gas, mining firms lead Europe stocks higher

European shares moved higher on Tuesday morning, helped by companies that benefit from strength in global commodity prices.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 9:00 am

Retail sector rebounds on aggressive sales

The UK retail sector performed better than expected last month after a disappointing Christmas trading season, but consumer confidence is falling and shoppers remain discount-driven, according to the latest figures from the British Retail Consortium.
Source: Telegraph Business | 12 Feb 2008 | 8:55 am

Asian stocks end mixed

Stock markets across Asia were mixed Tuesday with Hong Kong ending a three-session losing streak as investors searched for bargains while Japan struggled as financials were hit by continued concerns about credit markets.


Source: Business and financial news - CNNMoney.com | 12 Feb 2008 | 8:44 am

Beware of unintended consequences

PORT WASHINGTON, NY (MarketWatch) -- Relief, Recovery and Reform.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 8:39 am

Oil and mining groups lead FTSE bounce

London stocks mounted a rally at the open on Tuesday, prompted by a late turnround on Wall Street, which helped drive gains across Asia. In early trade, the FTSE 100 was up 40.6 points, or 0.7 per cent....
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 8:35 am

AIG losses may have been wider

Shares of insurance giant American International Group Inc. plummeted nearly 12% on Monday after the company's auditor found that faulty accounting might have understated losses on insurance written against...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 8:00 am

EBay to cut fees for media items after seller complaints

Facing competition from other e-commerce sites and a revolt from its top sellers, EBay Inc. said Monday that it would lower listing fees on media sold on its site, including books, music, movies and video...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 8:00 am

Trust of 'Rings' creator Tolkien sues New Line

It accuses New Line of cheating it out of at least $150 million from the blockbuster trilogy. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 8:00 am

Private overtures led to strike breakthrough

Living-room meetings cut through animosity in writers walkout. Studio executives and...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 8:00 am

Bargain hunters lift stocks

Investors move in after last week's losses. The Nasdaq notches its third straight gain. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Feb 2008 | 8:00 am

Credit Suisse confident amid turmoil

The Swiss bank underlined its confidence in the strength of its core businesses by proposing a near 12 per cent rise in its dividend as it reported full-year net income of SFr8.55bn
Source: FT.com - US homepage | 12 Feb 2008 | 7:55 am

US homeowners 'to get extra help'

Six of the biggest US banks are expected to announce plans to offer more help to those struggling with mortgages.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 7:52 am

Wal-Mart Japan unit says 2007 loss double forecast (Reuters)

Reuters - Wal-Mart Stores Inc's Japan unit, Seiyu Ltd (8268.T), said on Tuesday that it likely lost twice as much money last year as previously forecast due to slumping sales and asset write-downs.
Source: Yahoo! News: Business | 12 Feb 2008 | 7:47 am

Activist may get seat on Sprint board: reports (Reuters)

Ralph Whitworth, principal of Relational Investors LLC, speaks at the Reuters Investment Summit in New York December 13, 2005. Whitworth of Relational Investors LLC is in advanced discussions to take a seat on the board of Sprint Nextel Corp, according to the Wall Street Journal Web site, citing people familiar with the matter. (Jeff Zelevansky/Reuters)Reuters - Activist investor Ralph Whitworth of Relational Investors LLC is in advanced discussions to take a seat on the board of Sprint Nextel Corp , according to the Wall Street Journal Web site, citing people familiar with the matter.



Source: Yahoo! News: Business | 12 Feb 2008 | 7:30 am

Activist may get seat on Sprint board: reports

NEW YORK (Reuters) - Activist investor Ralph Whitworth of Relational Investors LLC is in advanced discussions to take a seat on the board of Sprint Nextel Corp , according to the Wall Street Journal Web site, citing people familiar with the matter.


Source: Reuters: Business News | 12 Feb 2008 | 7:30 am

Retail sales see January rebound

UK retail sales bounced back in January after the worst December in three years, a survey says.
Source: BBC News | Business | World Edition | 12 Feb 2008 | 7:24 am

U.S. charges four in espionage cases tied to China

A U.S. military analyst and a former Boeing Co. engineer have been arrested and charged in separate U.S. cases involving economic and military espionage linked to China.


Source: MarketWatch.com - Top Stories | 12 Feb 2008 | 6:37 am

Hot Hotel Tips

I don’t think much of the big airlines and the way they run their businesses. But, generally speaking, I like hotels. A lot.

Compared with the do-it-our-way airlines, hotels offer a panoply of choices. There seems to be a style of hotel for every $5 on the nightly-rate scale. Everyone from the janitor to the general manager seems empowered to fix something when a problem arises. Unlike the airlines, hotels don’t move in infuriating lockstep on prices or policies. No bellman ever lost my bag. I’ve never arrived at a hotel, reservation in hand, and been told that the property won’t be operating that evening. Best of all, if I don’t like the service I’m getting, I can check out and move to another hotel. Airlines really discourage midflight decisions to leave the aircraft.

But as with every other facet of life on the road, you can make your hotel stays better, cheaper, more comfortable, and more productive if you know how to work the system. Here’s the best of what I’ve learned in three decades of doing just that.

Status Matters
It took hotel chains almost a decade to successfully adopt and adapt airlinelike loyalty programs. But once they caught up in the early 1990s, hotel plans blossomed. Now, I value my elite status in frequent-stay programs more than my frequent-flyer credentials. That’s because status still matters in the hotel game and pays off with frequent room upgrades, lavish freebies (including rooms), and other perks, like the Oreos that one chain leaves on my nightstand.

Another great thing about hotel programs is that you don’t have to be loyal to any one brand or lodging type. All the major chains now have “families” of brands that cover everything from side-of-the-road motels to deluxe pleasure palaces—and every stay at any property counts toward your elite status with the chain. Align your lodging preferences with one family—Starwood, Marriott, Hilton, and InterContinental have the most hotels across the most lodging segments, closely followed by Hyatt—and you’ll quickly become a high-status player at hundreds of hotels around the world.

Introduce Yourself
Most of the hotels at the apex of the lodging hierarchy—think Four Seasons, Ritz-Carlton, Peninsula, Mandarin Oriental—don’t have frequency programs with membership cards, points, and monthly account statements. But they do have sophisticated computerized systems that track your personal preferences. Ask for a special type of pillow at the Ritz-Carlton in Cleveland and you’ll likely find the same waiting on your bed at the Ritz-Carlton in Istanbul. Request a particular wine at one Four Seasons hotel and it follows you around the Four Seasons universe.

But don’t rely on computers. At the best hotel groups, introduce yourself around, especially to the general manager. If you intend to be a regular, let him know. Give him your business card and write him a thank-you note after your stay. When you’re headed to the next property, call and ask him whom to contact. He’ll do the work for you and alert the next hotel’s G.M., who will likely want to meet you when you arrive. In no time, you’ll know the boss at great hotels around the world and they’ll ply you with room upgrades and a dazzling array of extra services. These guys—most G.M’.s at deluxe hotels are guys—know a good customer when they meet one.

 Tip the Housekeeper
Knowing people in high hotel places is fine, but it also pays to know—and to reward—crucial folks much further down the food chain, specifically, the housekeeper. No single person has more impact on the quality of your stay than the person tasked with keeping your room fresh and clean. And in case you’ve forgotten, these women—and most housekeepers are still women—are often minimum-wage workers.

The messier you are, the more you want to tip. The more services you desire—extra towels, off-hours cleanups—the more you want to tip. And leave your tip every day, not at the end of your stay, because the housekeeper may change from day to day. How much to tip? I never leave less than $5 a day, more if I’ve been particularly adept at leaving newspapers and other bits of paperwork strewn about. Leave it on your pillow, so the housekeeper knows that the spiff is for her.

Winning the Rate Game
There is no single best way to get the lowest nightly rate. Anyone who says otherwise is a fool—or the marketing executive at a major hotel company responsible for crafting the chain’s exception-laden “lowest-price guarantee.”

Generally speaking, however, I start at the hotel chain’s proprietary website. They most often have the best nightly rate—usually in the form of a nonrefundable, immediate-payment-required, Web-only price. And most major chains wield a powerful stick: Your elite-status benefits and perks only apply if you book directly.

When I don’t have a specific hotel chain or property in mind, I will check with Orbitz.com, which I find more convenient than rivals such as Travelocity.com or Expedia.com. I avoid Hotels.com like the plague because I have always found its prices too high and its payment policies onerous. And I won’t use blind booking sites like Priceline.com or Hotwire.com because I want to know what hotel I’m considering before I book it. Another third-party website I can recommend: Quikbook.com. It specializes in independent hotels and most of its participating properties do not require advance payment.

How about the old travel chestnut that insists you must call the hotel directly to get the best rate? Time has passed it by. Most major hotel chains now work off of a centralized database of rates. In fact, many properties don’t even have an on-site reservations department anymore—when you call, they connect you to their chain’s reservations call center. If you do call direct, remember that phone agents are trained to quote the highest nightly rate first. You’ll have to take them down the “price ladder” rung by rung by repeatedly asking, “Is that the lowest price you have?”

The Fine Print…
If you confront a sellout situation at a hotel—a slight possibility given the near-record occupancies at U.S. properties—ask if an “out of service” room is available. That’s industry jargon and it means you’re willing to accept a room that has been temporarily taken out of general inventory due to a small flaw that needs repair.
Related Links
Power in Numbers
The Hotel Collector
A Watery Grave for Hotel Tubs


Source: Portfolio.com: Top 5 | 12 Feb 2008 | 5:00 am

Clinton, Obama hit at troops 'pause'

The two Democratic presidential contenders criticised suggestions by Robert Gates, US defence secretary, that the Pentagon might pause the troop drawdown in Iraq after the "surge" winds down this summer
Source: FT.com - US homepage | 12 Feb 2008 | 3:32 am

Four arrested in US-China spy cases

The US announced a series of arrests in cases involving alleged spying by the Chinese government, including one where a Pentagon official was alleged to have helped Beijing obtain secret information
Source: FT.com - US homepage | 12 Feb 2008 | 2:59 am

White House insists recession unlikely

The Bush administration stuck to its prediction that the US would not face a recession in 2008, claiming the economy had a "solid foundation" to guide it through the housing crisis
Source: FT.com - US homepage | 12 Feb 2008 | 2:36 am

Yahoo rejects Microsoft bid (Reuters)

A Yahoo! signs sits out front of their headquarters in Sunnyvale, California, February 1, 2008. (Kimberly White/Reuters)Reuters - Yahoo Inc rejected Microsoft Corp's unsolicited $41.6 billion takeover offer as too low on Monday, forcing the software maker either to sweeten the bid or adopt a hostile approach to clinch a deal.



Source: Yahoo! News: Business | 12 Feb 2008 | 2:12 am

In Brief - Monday

W.R. Berkley (BER), an insurer, said its Q4 EPS edged up 1% to 97 cents ex items, beating views by 2 cents. Revenue grew 3% to $1.4 bil. Shares...

Source: Investor's Business Daily: BUSINESS | 12 Feb 2008 | 12:45 am

Trends & Innovations - Monday

Wireless system to track miners

Source: Investor's Business Daily: BUSINESS | 12 Feb 2008 | 12:45 am

After The Close - Monday

BOIS D'ARC ENERGY (BDE), an oil and gas exploration company, said its Q4 EPS more than doubled to 42 cents, beating views by 5 cents. Revenue rose...

Source: Investor's Business Daily: BUSINESS | 12 Feb 2008 | 12:45 am

Equipment Maker's Growth Could Pump Up Investors' Enthusiasm

With all the market's sinking ships, many investors are bailing out. And when they do, Colfax will be there with the pumps.

Source: Investor's Business Daily: BUSINESS | 12 Feb 2008 | 12:45 am

Business Briefs - Monday

RIM teaming up with Vodafone

Source: Investor's Business Daily: BUSINESS | 12 Feb 2008 | 12:45 am

Standard SIV goes to receivers

Credit market problems have forced Standard Chartered to call in the receivers at its structured investment vehicle (SIV), one of the more "toxic" products created during the recent financial services boom.
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

Digby Jones to promote 'Brand Britain'

Lord Digby Jones was banging the drum for Britain yesterday just four days after questioning whether government policy was reducing the UK's attraction for foreign investors.
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

Chavez threat to cut supply pushes up oil price

The price of crude hit a one-month high after Venezuela's president Hugo Chavez turned up the rhetoric over an ExxonMobil lawsuit freezing £12bn of assets belonging to the state oil company.
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

GCap dumps digital and tunes into safety

When Richard Eyre ran Capital Radio during the 1990s, he presided over one of the more experimental diversification plans in recent corporate history by buying the My Kinda Town restaurant chain
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

SocGen's rights issue is priced to succeed

Société Générale, the French bank involved in the biggest-ever rogue trading scandal, priced its rescue rights issue at a steeper discount than expected to stave off a bid by ensuring the €5.5bn (£4.1bn) fundraising succeeds.
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

Crystal Palace stadium 'to be sold'

Fans of Crystal Palace Football Club are set to see their stadium sold as a development opportunity for £12.5m, according to confidential information seen by The Daily Telegraph.
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

Fears of takeover collapse hit Resolution

Resolution Group's shares tumbled by up to 8pc on concerns that the £5bn takeover of the zombie fund operator could collapse.
Source: Telegraph Business | 12 Feb 2008 | 12:01 am

GM Handily Beats Earnings Expectations

The top automaker cruised past forecasts with a surprise profit and also made a deal with its biggest union to offer buyout and early-reitrement packages to hourly workers.
  GM Shares Rise; Earnings Seen Topping Views
  Chrysler Dealers Endorse Latest Restructuring Move

Source: CNBC Top News and Analysis | 12 Feb 2008 | 12:00 am

Credit Suisse Slips on Fears of More Writedowns

Credit Suisse shares fell although it reduced total writedowns from the subprime crisis. The bank's transparent statement sparked fears that Credit Suisse would announce more writedowns later.
Source: CNBC Top News and Analysis | 12 Feb 2008 | 12:00 am

BlackBerry Outage Strikes Across North America

A major service outage afflicted users of the popular, addictive BlackBerry smart phones across the United States and Canada on Monday.
Source: CNBC Top News and Analysis | 12 Feb 2008 | 12:00 am

Mortgage Crisis Spreads Past Subprime Loans

As home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their payments for home loans, auto loans and credit cards at a quickening pace, according to industry data and economists.
Source: CNBC Top News and Analysis | 12 Feb 2008 | 12:00 am

Bad Bets and Accounting Flaws Slam Hedge Funds 

Mark S. Fishman was a modern prince of the markets — a pedigreed money manager who raised billions of dollars at the height of the hedge fund boom.
Source: CNBC Top News and Analysis | 12 Feb 2008 | 12:00 am

AIG puts two-month subprime loss at $5bn

American International Group sent tremors through the markets when the insurance company raised its estimate of losses in October and November from insuring mortgage-related instruments from about $1bn to nearly $5bn
Source: FT.com - US homepage | 11 Feb 2008 | 11:55 pm

Economy - Monday (Investor's Business Daily)

Investor's Business Daily - President Bush said the long-term outlook was bright despite current troubles. "Given the economy's strong basic structure, free mobility of labor, relatively low taxes, well-balanced capital markets and openness to trade, prospects for continued growth in the years ahead remain good," said a report by Bush's Council of Economic Advisers. The White House stuck to its forecast for 2.7% growth in '08, far above the 1.6% predicted by private-sector economists.
Source: Yahoo! News: Business | 11 Feb 2008 | 11:53 pm

Risk Of Loss Tends To Fade With Time (Investor's Business Daily)

Investor's Business Daily - With the average stock fund down about 9% this year, you might be wondering if you should move your money to a safer area.
Source: Yahoo! News: Business | 11 Feb 2008 | 11:17 pm

Huawei rails at 3Com deal security concerns

The Chinese company participating in the planned buy-out of a US telecoms equipment maker has angrily rounded on US politicians who claim the deal could endanger US national security
Source: FT.com - US homepage | 11 Feb 2008 | 10:24 pm

Yahoo rejects Microsoft approach

Yahoo rejects a takeover bid of more than $40bn from computer software giant Microsoft saying it is too low.
Source: BBC News | Business | World Edition | 11 Feb 2008 | 10:14 pm

Activist investor aims for Sprint board

Ralph Whitworth, the activist investor, is in advanced talks to join the board of Sprint Nextel, a move that would give him a bigger platform to put pressure on management of the struggling US telecoms group
Source: FT.com - US homepage | 11 Feb 2008 | 10:01 pm

Heat Is On AIG Chief

When Martin Sullivan, chief executive of insurance giant American International Group, stood before investors in early December, he delivered remarks that practically oozed assurance.

A.I.G.'s credit portfolio was so sound that the chance of it sustaining economic losses was "close to zero." The company was "confident in our marks and the reasonableness of our valuation methods." And finally, "We cannot predict the future, but we have a high degree of certainty in what we have booked to date." A.I.G.'s stock soared 6 percent.

Reflecting on those comments makes it all the more difficult to stomach today's news. The company disclosed that its portfolio of super-senior credit default swaps had not declined by $1.1 billion during October and November, as Sullivan said it had in December. Instead, it lost about $6 billion in value. Moreover, A.I.G.'s auditors said that the company's internal valuation methods, which its executives exhaustively outlined for investors in order to back up its claims of financial soundness, were flawed. A.I.G. stock plunged 11 percent.

This raises one obvious question: Will Sullivan follow Citigroup's Charles Prince, Merrill Lynch's Stanley O'Neal, Morgan Stanley's Zoe Cruz, and Bear Stearns' Warren Spector to Wall Street's exit ramp?

It's fair to say that it's nothing short of an embarrassment that the chief executive of one of the biggest players in risk management got burned on its securities based on the risk of default.

But it's far from clear that A.I.G. is the next big financial disaster waiting to happen. As Felix Salmon points out on his Market Movers blog, the huge numbers splashed across the headlines today don't tell the whole story. In addition to losing value, the A.I.G. portfolio benefited from so-called spread differential. But because the company can't guarantee that the gain is 100 percent correct, it won't count at all.

Moreover, A.I.G. recognized the increased risk in the mortgage market as early as the end of 2005, when it stopped writing protection on instruments with subprime collateral. What it didn't know then was that so many highly rated products it did protect would turn south so quickly during 2007.

A.I.G. tried to develop its own method of valuing these instruments, and what's alarming is that it still hasn't a clue how to do it. For that matter, no one on Wall Street knows what so many investments out there are worth today, even six months into the full-blown credit crisis.

Sullivan has fought an uphill battle since taking over A.I.G. from Maurice "Hank" Greenberg in 2005, and A.I.G. shares have shed 30 percent of their value since then. While one could make the argument that Sullivan should be ousted, today's $4.8 billion blunder wouldn't be the reason why.

Perhaps other finance chiefs should pay attention to Sullivan's biggest mistake in all of this. The only certainty on Wall Street these days is uncertainty. To convey anything more to your investors will come back to haunt you.  



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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 10:00 pm

Volatility Index Falls 1.46% to Close at 27.60


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 9:51 pm

Modest gains on Wall St led by energy and tech (FT.com)

FT.com - US stocks chalked up modest gains on Monday, led by energy and technology companies, helping offset worries about the threat of new turmoil in credit markets.
Source: Yahoo! News: Business | 11 Feb 2008 | 9:45 pm

Bloomberg's Goldman on Obama's U.S. Presidential Campaign


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 9:22 pm

Bloomberg's Zacharia, Kempe Discuss Security in Afghanistan


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 9:18 pm

Keene Urges McCain Not to Pick Huckabee for Ticket


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 9:15 pm

Today From Barron's: Brace Yourself

The investment world's voice of reason sees a few tough years ahead — but great bargains in 2010.


Source: SmartMoney.com | 11 Feb 2008 | 9:08 pm

Novak, Carlson on Presidential Campaigns for Clinton, Romney


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 8:59 pm

Deal of the Day: Avoid Being Duped By Online Dating Sites

Complaints about online matchmaking sites have skyrocketed. Here's what to watch out for.


Source: SmartMoney.com | 11 Feb 2008 | 8:51 pm

US economy 'will avoid recession'

The US economy will grow in 2008, the White House says, shrugging off concerns that the US is facing a recession.
Source: BBC News | Business | World Edition | 11 Feb 2008 | 8:44 pm

Tax Guide: Stimulus Act Offers Free Money to Most Taxpayers

Just how economically stimulating will the government's tax rebates be for you.


Source: SmartMoney.com | 11 Feb 2008 | 8:31 pm

One-Day Wonder: AIG Takes Hit on Subprime Accounting Woes

Trouble tallying the full impact of the subprime mess sank the insurer's shares.


Source: SmartMoney.com | 11 Feb 2008 | 8:05 pm

Goosing the Gray Lady

The hedge funds that are taking a warm and fuzzy approach to pressing for changes at the New York Times Co. have turned the heat up a notch.

The funds, Firebrand Partners and Harbinger Capital, say in a filing with the Securities and Exchange Commission that they have doubled their combined stake in the New York Times Co., to nearly 10 percent of the class A shares from 4.9 percent.

The funds also disclosed that they met on Friday with Arthur Sulzberger Jr., chairman of the company and publisher of the New York Times, and Janet Robinson, chief executive of the company.

In a letter to the two executives, the funds did not disclose what was discussed, but said, "We are looking forward to continuing a productive and positive dialog."

Unlike previous challenges, the funds are not seeking changes in the Times Co.'s dual-share structure that gives the Sulzberger family control through its ownership of most of the class B shares.

Instead, the funds are looking for the New York Times Co. to focus on its core assets and grow its digital business. They have nominated four directors, including Gregory Shove, a former head of AOL's electronic commerce business, and James Kohlberg, co-founder of the private equity firm Kohlberg & Co.

Leading the drive has been Scott Galloway of Firebrand Partners. As Megan Barnett of Portfolio.com found in a profile of Galloway, his record as an activist investor has been mixed.

Still, the increased stake and disclosure of Friday's meeting suggest that the funds are trying to increase their so-far friendly pressure as the window for avoiding a proxy fight begins to close.

New York Times shareholders will meet on April 22. Well before then, the nominating and governance committees of the board need to decide whether to recommend the four nominees or not. The New York Times board has 13 members. Nine of them are elected by the Sulzberger family trust.


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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 8:00 pm

SmartMoney Magazine: What Would You Do With $100,000?

Share your thoughts on what you would do with a $100,000 windfall.


Source: SmartMoney.com | 11 Feb 2008 | 7:39 pm

Lerach Sentenced to Prison

Two years means two years.

A federal judge sentenced prolific plaintiffs' lawyer William S. Lerach to two years in prison in a criminal prosecution in which he and his former law firm, Milberg Weiss, were accused of paying kickbacks to plaintiffs in securities-fraud lawsuits against major corporations.

The prison term was the maximum allowed under plea deal that Lerach struck with federal prosecutors last October. As part of that deal, Lerach, 61, pleaded guilty to one count of conspiracy to obstruct justice and make false statements to a federal court. The plea agreement had called for a one- to two-year sentence, and the probation department had recommended 15 months.

U.S. District Judge John Walter in Los Angeles also fined Lerach $100,000 and ordered him to serve two years of probation and to perform 1,000 hours of community service upon his release from custody. Under his plea deal, Lerach must also forfeit $7.75 million in profits from his crimes.

"The whole conspiracy corrupted the law firm and it corrupted it in the most evil way," Judge Walter said during the hearing, according to the Associated Press.

Prosecutors said that Lerach's former firm paid clients a total of $11.5 million to serve as plaintiffs in lawsuits against corporate giants such as Lucent and WorldCom. The firm, in turn, making more than $250 million in lawyers' fees over two decades, according to prosecutors.

Lerach headed up the San Diego office of Milberg Weiss. Following Lerach's bitter split with partner Melvyn I. Weiss in 2004, after the federal probe of the kickback scheme had begun, the firm split.

Seven people, including three former partners of Milberg Weiss, have pleaded guilty. Weiss himself has vowed to defend himself at a trial scheduled to take place in Los Angeles in August.

Judge Walter apparently was unmoved by Lerach's sentencing memo, which included more than 150 letters of support from fellow plaintiffs' lawyers, his adversaries in the defense bar, employees, lawyers who handled two of his divorces, as well as his drivers, gardener, and contractors who worked on his aquariums.

 In the sentencing memo, under a heading called "The Extraordinary Life of William Lerach," we learn that his father "died suddenly," when Lerach was just a freshman in high school in 1963. The memo adds that Lerach's childhood was "difficult" because his father had lost an inheritance during the Depression "and struggled financially until his death."

Lerach lived with his widowed mother while he attended college, and then law school at the University of Pittsburgh School of Law, where he graduated second in his class in 1970. The memo added that as a student he worked as a laborer at a nursery, a "gofer" at a funeral home, and a credit reporter at Dunn & Bradstreet to supplement scholarships.

He always began faxes to his mother with "To the World's Greatest Mom."

Gene Carney, Lerach's kindergarten classmate, who lost touch with him after high school, writes: "Especially in touch football or baseball or basketball, you always wanted Bill on your side, because he was a fierce competitor who hated to lose. But he was a fair player."

And we learn other heretofore-unknown tidbits about the life of Bill. He loves plants and fish, and likes to support community causes "devoted to helping abused women and animals," according to the brief. The job at the nursery apparently began a lifelong love of gardening.

"Bill has a great love of plants and actively works in his own garden," according the owner of Weideners' Gardens in Encinitas, California, whose letter points out that, for his fourth and most recent marriage, Lerach directed that contributions be made to the Community Resource Center Women's Shelter in lieu of wedding gifts.

Part-time New York Times economics columnist Ben Stein weighs in with a letter, in which he introduces himself thus: "How are you? I hope this letter finds you well. I am a law teacher (at Pepperdine but retired,) writer, economist, writer, TV Game show host, and actor." He's a writer twice, or perhaps he did not have an editor. In any case, Stein says he got to know Lerach while penning a column for Barron's.

"It would not be an exaggeration to say that I learned more about the law from Bill Lerach than I learned in my three years at Yale Law School," Stein writes. After Stein did a spot for the CBS Morning Show on abandoned dogs and cats in New Orleans after Hurricane Katrina, Lerach sent him a check for $10,000 "for those dear creatures," which Stein forwarded to the International Fund for Animal Welfare.

 Lerach's gardener, whose letter was translated from Spanish to English, says Lerach makes "a big pot of coffee" for his workers each morning, and puts out cookies, fruits, juices and pastries, and sometimes pies baked by his wife.

The lawyer's secretary of 30 years writes that he gave her his Maxima when he bought a new car, and treated her to a trip to Venice when he married his third wife.

His driver writes that Lerach loaned him money to buy a home, "assisted" him in sending his daughter to a private Catholic school, and allowed him to use Lerach's vacation home in Hawaii, offering his frequent flyer miles for an upgrade on the plane. "It may sound corny, but to put it simply --- he is the nicest guy I have ever known," writes the driver, Frank Cucinotta.

Lerach seems to have a particular affinity for those tending to his aqua life. He loaned $100,000 to the man who services his aquariums so that he could launch his own business.

The 55-page document lists Lerach's many accomplishments, among them the creation of a new verb ----- to be "'Lerached'" --- a verb not found in Webster's, but very much part of the vernacular of corporate executives, especially in Silicon Valley, where Lerach was known for filing "strike suits" with lightening speed after a company's stock dropped.

"I know of many instances where the fear of being ‘Lerached' has motivated a board of directors and/or corporate managers to take a more prudent and responsible course," according to a letter from C. Hugh Friedman, a professor at the University of San Diego School of Law.

There are several letters from lawyers at the Regents of the University of California, the lead plaintiff in Lerach's mammoth class action stemming from the Enron fraud, lauding him for the $7.2 billion he has recovered for the Enron victims.

Several defense lawyers from prominent corporate firms have weighed in. "Defense lawyers across the country may delight in Mr. Lerach's downfall, but we, and the bar, have lost a magnificent adversary," writes Ralph Ferrara of Dewey & LeBoeuf.

Senator Carl Levin, a Michigan Democrat, and consumer advocate Ralph Nader have also stepped up. But more than a dozen letters were filed under seal, and several media outlets are seeking to open those records.

Lerach's lawyer, John Keker, urged the judge to sentence Lerach to just six months at a minimum-security prison in Lompoc, California, followed by six months of home confinement "fashioned so as to permit Lerach can play an active role in the University of Pittsburgh School of Law's educational program beginning in January 2009."

It looks as though Lerach's teaching career, where he is set to participate in course on ethics, of all subjects, will have to wait.

"I pleaded guilty in this case because I was guilty," Lerach said before the sentencing, according to the A.P. "It was, as they say, a stupid felony."

Perhaps the opening of his first law lecture? He will have plenty of time to craft the lesson plan.


Related Links
Who's Speaking Up for Bill Lerach?
Plaintiffs Lawyer's Fall
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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 7:30 pm

BofA and Chevron selected in Dow shake-up

Bank of America and Chevron became the latest companies to be selected for the Dow Jones Industrial Average stock index in the first change to the share market barometer since 2004
Source: FT.com - US homepage | 11 Feb 2008 | 7:20 pm

Uncertainty Unearthed at A.I.G.

These are words that no public company wants to hear from its auditors: You have material weakness in your internal controls over financial reporting and oversight.

That's precisely what the bean counters at PriceWaterhouse told American International Group about the way it values certain credit investments, causing its shares to plunge more than 10 percent today. The disclosure is a stark reversal to the insurance giant's earlier claim that it did not foresee major financial ramifications stemming from the credit crisis.

The value of A.I.G.'s portfolio of credit default swaps fell by $6 billion in October and November, according to a regulatory filing. Previously, the company announced that its value had dropped by just $1.1 billion in that period. It hasn't yet determined their decline for the full fourth quarter.

The disclosure underscores the uncertainty surrounding the value of collateralized debt obligations and other credit instruments that have declined as defaults on mortgage payments have increased. The swaps in A.I.G.'s portfolio are contracts based on the risk of default on securities like C.D.O.'s. (Here is an explanation of C.D.O.'s)

Indeed, many economists believe that the $120 billion in write-downs that investment banks have already disclosed may just be the beginning of worldwide credit losses stemming from the subprime mortgage crisis. Over the weekend, German finance minister Peer Steinbrück said that the finance leaders from the Group of Seven nations expect the losses to reach $400 billion. Other economists put the figure as high as $500 billion, but the U.S. Federal Reserve is still estimating that the losses will reach only $150 billion.

"There remains a risk that further shocks may lead to a recurrence of the acute liquidity pressures experienced last year," the Financial Stability Forum indicated in a report presented to the finance leaders in Tokyo. "It is likely that we face a prolonged adjustment, which could be difficult."

The group is urging banks to quickly assess the "realistic value" of its debt portfolios and take the appropriate steps to report them.

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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 5:30 pm

Harvard's Hausmann Says Stimulus Can Hurt More Than Help


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 5:19 pm

Tradecraft: Tax Rebates to Neediest Won't Stimulate Economy

Taking from the rich to give to the poor isn't my idea of a sound stimulus plan.


Source: SmartMoney.com | 11 Feb 2008 | 5:02 pm

Analysts Calls: Merrill Lynch, Napster, Darden Restaurants


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 4:54 pm

Bloomberg's Keene Discusses TED Spread, Libor, U.S. Economy


Source: Bloomberg - All Podcasts | 11 Feb 2008 | 4:39 pm

RIM and Vodafone strike deal to target retail market (Reuters)

A Research in Motion Blackberry is shown in Toronto October 26, 2007. International wireless giant Vodafone Group Plc and RIM announced a partnership on Monday as RIM seeks to broaden the BlackBerry's reach. (Mark Blinch/Reuters)Reuters - International wireless giant Vodafone Group Plc and BlackBerry maker Research In Motion Ltd announced a partnership on Monday as RIM seeks to broaden the BlackBerry's reach.



Source: Yahoo! News: Business | 11 Feb 2008 | 4:16 pm

How Now, Dow?

For cynics, Rupert Murdoch has passed another test in his young reign over Dow Jones.

The editors of the Dow Jones indexes have announced the first changes in the Dow Jones industrial average since April 2004 and the first since Murdoch acquired the company, which also publishes the Wall Street Journal and Barron's.

And no, the name of the closely watched market barometer is not being changed to "the Fox Business Network American Dream Index" or the like (there is still the Fox 50 index), nor will News Corp. suddenly become a blue chip.

Instead, the reason for the change is fairly straightforward: the overhaul of Altria, formerly Philip Morris, which spun off Kraft Foods last year. The company will become even smaller with a planned spinoff of Philip Morris International.

So Altria, and its longtime ticker of MO, departs from the Dow. So does Honeywell International, because it is the smallest of the industrials in the blue chips.

Replacing Altria and Honeywell, effective February 19, will be Chevron and Bank of America.

The introduction of Bank of America tilts the membership of the Dow even further toward financials. The Dow did not have a financial company until American Express in 1982. Now, with Bank of America, five out of the 30 (or four and a half, if one counts GE Capital) will be financial companies. Needless to say, recent months have not been kind to financial stocks.

For Chevron, it is a return to the Dow. It was first in the Dow in 1924, when it was Standard Oil of California, the nemesis of Daniel Plainview in the movie There Will Be Blood. It fell out the next year, rejoined in 1930, and was replaced in 1999.

Because the Dow is price-weighted, Chevron will be the fourth-biggest member, while the other energy component, Exxon Mobil, is No. 2, Standard & Poor's notes.

Barry Ritholtz on his Big Picture blog points out that the Dow added Intel and Microsoft in late 1999 at the height of the tech boom. Is the addition of Chevron signaling a top in energy, he asks.

The Standard & Poor's 500-stock index has become the market benchmark for investment professionals, but the Dow is still the measure for stocks in the popular imagination.

John A. Prestbo, editor of Dow Jones Indexes, says that the Dow and the S&P are closely correlated, but what the Dow has going for it is its long history. Some $53 billion in investments is tied to the Dow, he says.
  

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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 4:00 pm

Hooray for Hollywood Peace

TV showrunners head back to the office today, putting an official end to Hollywood's 14-week writing freeze.

Writers Guild of America West president Patric Verrone announced on Sunday that the ruling boards of the W.G.A. have forged a three-year tentative deal with the majors, but held off on officially ending the strike until W.G.A. members have the opportunity to vote on a return to work.

The members vote—which is largely seen as a formality—will conclude Tuesday night, meaning rank and file writers will officially resume work on Wednesday.

The strike's end means that networks and studios can finally launch back into production, and that the February 24 Oscars can proceed without fear of picketing—and with scriptwriters.

Judging by Verrone's attitude, the W.G.A. feels that the new contract represents a victory for writers. The vast part of the friction between the two sides was over jurisdiction over new media and tying new-media residuals to distributors' gross; the deal hammered out allows studios a 17-day window (or 24 days for first-year programs) of free usage before residual fees kick in.

While many writers balk at that portion of the contract, according to Variety, a little-noticed provision of the pact gives scribes 2 percent of distributors' gross on library product going back to 1977 from the first year of the contract. Library product is defined as programs streamed more than a year after their initial telecast, and is seen as a growth area for studios and networks.

Now that writers are back to work, TV networks will begin especially furious production schedules.

Variety reports that NBC's Saturday Night Live will be among the first shows back on TV, before the end of February, while ratings giants like ABC's Desperate Housewives and NBC's The Office will begin airing by the end of March.

Dramas, which take longer to produce, may not air again until the fall, as producers are hesitant to restart production for just a few episodes to air before seasons end in May.    

One major change that writers will grapple with when they return to their desks is big changes to the traditional pilot season and process. Major studios won't have time to fully produce pilots the way they have in the past, opting instead to work off of scripts and substantially cut down on the number of shows that make it to pilot stage.

That's one thing that network execs can thank the striking writers for, as pilots are seen by many as major drains on time and money.

There may also be major changes in advertising upfronts. NBC has said that it is considering canceling its presentation, while ABC is rumored to be planning a paired-down event this spring.


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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 2:00 pm

Breaking News: Stocks Advance on Deals, Oil

In a volatile session, traders sent the major indexes higher on Monday, buying energy and tech.


Source: SmartMoney.com | 11 Feb 2008 | 1:53 pm

Discount for a Scandal

Société Générale is struggling to put the effects of a $7 billion trading scandal behind it.

The giant French bank went to the market today to raise nearly $8 billion in stock. But it is having to do so at a steep discount—39 percent below its closing stock price on Friday. A discount of as much as 30 percent had been expected.

"The price is very low," Pierre Flabbee, an analyst with Kepler Equities in Paris, told Reuters. "The feedback from the market cannot have been very encouraging."

Société Générale's experience may be a bad omen, says Douglas A. McIntyre on the blog 24/7 Wall St. "It also speaks volumes about what will happen if big U.S. money center banks and brokerage houses have to go back to the market for money this year," he says.

But Pierre Briançon on Breakingviews.com says the SocGen sale was no fire sale—"more a recognition of reality."

The price of the stock sale, he says, is less than seven times earnings for Société Générale this year. That gives it a multiple roughly that of the stock price of its larger rival,  BNP Paribas.


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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 1:30 pm

What Yahoo's "No" Means

The board of Yahoo has rejected a $31-per-share takeover offer from Microsoft.

"After careful evaluation, the board believes that Microsoft's proposal substantially undervalues Yahoo including our global brand, large worldwide audience, significant recent investments in advertising platforms, and future growth prospects, free cash flow, and earnings potential, as well as our substantial unconsolidated investments," the Yahoo board said in a statement. "The board of directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders."

Full coverage of Microsoft's bid for Yahoo is found here.


The New York Times' DealBook sees the rejection letter as leaving the door open to negotiations.

"Yahoo’s statement seemed to lack the hard edge of some other rejections of late,” DealBook says. "It also didn’t spend lots of time touting the virtues of an independent Yahoo, which is a common strategy when a company is fending off an unwanted acquirer."

Indeed, a growing consensus is that today's rejection is aimed at fulfilling the board's duties to shareholders by trying to extract a higher price from Microsoft.

As Rob Hof of BusinessWeek, put it, "Although things could get ugly for awhile, I still think this may only delay the inevitable."

For one, there is no other credible bidder out there who could match Microsoft's offer. While shares of Microsoft have declined recently, it is still offering a very rich premium to Yahoo's stock price.

So is Yahoo undervalued? 

David Gaffen on the Wall Street Journal's MarketBeat blog cites analysts at Sanford Bernstein who say that Yahoo's assets are "potentially worth $37 if it outsources paid search to Google" and perhaps $40 if Yahoo were to acquire certain AOL assets. "But that's a long, winding drive through the woods on a lot of assumptions," Gaffen says.
 
And if there is no offer from anyone else on the table, Microsoft is not going to bid against itself.

The search for alternatives has led Yahoo to explore merger talks with AOL, if the Times of London is to be believed. Yet while such a deal might make strategic sense and would probably make shareholders of Time Warner happy, it is difficult to see how it would do anything for Yahoo shareholders.

And Yahoo shareholders are increasingly the kind of investors who want the highest price now, rather than wait for the fruits of a long-term strategy. Andrew Ross Sorkin of the New York Times notes that in recent weeks millions of Yahoo shares have been bought by "short-term-oriented hedge funds that typically favor a quick sale."

That shift will help Microsoft as it prepares to lobby Yahoo shareholders on the merits of a merger. The Times notes that Microsoft could also put its offer directly to shareholders, increasing the pressure on Yahoo's board to negotiate.

Still, the leaks about Yahoo's rejection and possible talks with AOL, says Henry Blodget in Silicon Alley Insider, "have taken the company's perceived position in this negotiation from 'no-options-and-might-not-even-get-back-to-$31-a-share' to 'several-options-and-won't-take-less-than-$35-a-share.'"

Shares of Yahoo are up 1.5 percent today, at $29.64.

Michael Arrington on TechCrunch acknowledges that a deal may be inevitable. But he says he is excited to see Yahoo "being bold."

"It may be a whimper, but it's a bold whimper," he says.

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Source: Portfolio.com: Top 5 | 11 Feb 2008 | 12:30 pm