The international credit crunch was threatening to claim a fresh hedge fund
victim last night as London-based Peloton Partners told investors that it
was being forced to liquidate a $2 billion ($£1 billion) bond fund. Source: Latest Business News from Times Online | 29 Feb 2008 | 7:43 pm
LONDON (Reuters) - The dollar hit record lows against the euro, Swiss franc and a basket of major currencies on Friday, pressured by concerns about the U.S. economy and expectations of further aggressive interest rate cuts.
Reuters - Oil fell to $102 a barrel on Friday,
stepping back from a record high reached due to supply
disruptions and as a weak U.S. dollar encouraged investors to
buy commodities.
Sharp declines in economic confidence in Spain and Italy this month has darkened the growth outlook for the eurozone, the European Commission said in its latest survey of sentiment in the region Source: FT.com - US homepage | 29 Feb 2008 | 12:11 pm
PARIS (Reuters) - Vivendi on Friday posted an 8.3 percent rise in adjusted full-year net profit, pulled by Maroc Telecom, its pay-TV group and its video games unit behind the popular World of Warcraft game.
NEW YORK (Reuters) - Bond insurer Assured Guaranty Ltd said on Friday billionaire investor Wilbur Ross agreed to buy up to $1 billion of its shares, giving it a much needed capital boost to preserve its triple A credit rating.
U.K.-listed banking giant HSBC receives a 2.1 billion-euro ($3.2 billion) approach for its seven French regional banking subsidiaries from Groupe Banque Populaire.
Swiss Re reports an 87% fall in quarterly profits after it was hit by bad debt insurance payouts. Source: BBC News | Business | World Edition | 29 Feb 2008 | 11:57 am
LONDON (Reuters) - London is losing its lead as the world's top financial center, hit by the crisis at bank Northern Rock and the government's proposed levy on wealthy foreigners, a report said.
Reuters - Leading U.S. stock index futures fell
before the start of Wall Street trading on Friday with the
focus on consumer spending data amid growing worries about a
recession and the implications for corporate profits.
FRANKFURT (Reuters) - Leading stock index futures fell before the start of Wall Street trading on Friday with the focus on consumer spending data amid growing worries about a recession and the implications for corporate profits.
Stock futures sank early Friday after a huge loss at insurer AIG raised worries about the credit crunch and investors awaited another wave of economic reports.
Reuters - Banque Populaire said on Friday it had
entered into exclusive talks to buy 400 bank branches being
sold by HSBC France, mainly in the south of the country, for
2.1 billion euros ($3.17 billion). Source: Yahoo! News: Business | 29 Feb 2008 | 11:42 am
PARIS (Reuters) - Banque Populaire said on Friday it had entered into exclusive talks to buy 400 bank branches being sold by HSBC France, mainly in the south of the country, for 2.1 billion euros ($3.17 billion).
Ben Bernanke didn't tell Congress this week exactly what the Federal Reserve would do next, but the central bank chief certainly left Wall Street with the impression that a half-point cut is a sure thing.
The dollar hit another record low against the euro on Friday, as data continued to support the view that the European Central Bank will keep interest rates on hold for the foreseeable future.Headline inflation... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 11:27 am
A London-based hedge fund falls victim to the credit crisis after losses linked to the US housing market. Source: BBC News | Business | World Edition | 29 Feb 2008 | 11:22 am
Oil prices rise again, hitting another all-time high on strong demand and the weak dollar. Source: BBC News | Business | World Edition | 29 Feb 2008 | 11:20 am
WPP is predicting that the real global slowdown will arrive in 2009, not 2008, as China "pauses" and the new American President tries to get most of the bad economic news out of the way at once. Source: Telegraph Business | 29 Feb 2008 | 11:20 am
Financial stocks dragged European equity markets lower as jitters about declining growth sent investors fleeing to the safe havens of telecom and beverage shares.Swiss Re, the world's top reinsurer defied... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 11:10 am
The dollar falls to a fresh record low against the euro as traders bet on further US rate cuts. Source: BBC News | Business | World Edition | 29 Feb 2008 | 11:07 am
Savers have flocked to building societies in the wake of the Northern Rock
crisis. New figures show that building societies recieved more deposits in
January this year than in any January since 1997. Source: Latest Business News from Times Online | 29 Feb 2008 | 11:05 am
London equities fell on Friday, with financial stocks suffering in the aftermath of a crisis at one of the UK's most successful hedge funds. But strong commodities markets helped resource stocks keep overall... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 11:02 am
U.S. stock futures dropped on Friday on continued worries about a housing-triggered economic slump, as evidenced by American International Group’s multi-billion-dollar loss and by the soft U.S. corporate spending reported by Dell Inc.
The best cars you can buy in the United States are made by Honda, according to Consumer Reports. The is the second year in a row the Japanese automaker has been given the distinction.
Microsoft says it plans to cut the cost of its Windows Vista operating system sold at retail outlets in 70 countries. Source: BBC News | Business | World Edition | 29 Feb 2008 | 10:45 am
Reuters - Euro zone economic sentiment
deteriorated much more than expected in February but inflation
expectations were stable, even though data confirmed that food
and energy costs fuelled a record surge in inflation in
January. Source: Yahoo! News: Business | 29 Feb 2008 | 10:33 am
BRUSSELS (Reuters) - Euro zone economic sentiment deteriorated much more than expected in February but inflation expectations were stable, even though data confirmed that food and energy costs fuelled a record surge in inflation in January.
French media, music and telecom conglomerate Vivendi SA posts a 16% increase in fourth-quarter adjusted profit on strong growth at its Moroccan phone division and an improved performance its Canal Plus Pay-TV unit.
The number of new mortgages approved for house buying rose very slightly in January, figures show. Source: BBC News | Business | World Edition | 29 Feb 2008 | 10:18 am
Shares in Close Brothers fell to a new 52-week low on Friday after the London-based investment bank said it was no longer in takeover talks.Close has been in play since Cenkos Securities, its rival, made... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 10:17 am
Among the companies whose shares are expected to see active trade in Friday’s session are Dell Inc., Interpublic Group of Companies and Brown-Forman Co.
A lawsuit among Toyota dealers has shed new light on one of the Japanese automaker's less well-known business practices: its use of independent distributors to sell cars in the United States.
Media giant Viacom sees a 16% rise in quarterly profit, boosted by DVD sales of the hit Transformer movie. Source: BBC News | Business | World Edition | 29 Feb 2008 | 10:00 am
LONDON (Reuters) - Oil eased towards $102 a barrel on Friday, stepping back from its new record peak above $103 hit in a rally fuelled by fund money chasing commodities as the U.S. dollar plummets and worries mount about supply disruptions.
Rank, the UK casino, bingo and online betting company long seen as a potential takeover target, said on Friday it was transferring its pension scheme to a subsidiary of Goldman Sachs to remove risk from... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 9:50 am
Swiss Re's 2007 net profit fall 9% from the previous year's record level, though the group still manages to beat market expectations as it also reveals a further 240 million Swiss francs ($224 million) in write-downs.
The euro continued its rapid climb to new highs against the dollar on Friday, hitting $1.5238 in early European trading. The dollar has been plagued by uncertainty about the course of... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 9:45 am
Some Turkish troops have returned to bases in Turkey after completing their mission in northern Iraq, but no full withdrawal has begun, a senior Turkish military source said after a TV station reported the campaign was over Source: FT.com - US homepage | 29 Feb 2008 | 9:44 am
The euro continued its rapid climb to new highs against the dollar on Friday, hitting $1.5238 in early European trading. The dollar has been plagued by uncertainty about the course of... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 9:44 am
The Oscars were a non-event this year for Sony - the studio took home only one gold statue - but Sir Howard Stringer was in town with plenty to celebrate.
American International Group Inc., the largest insurer in the U.S., lost more than $5 billion in the fourth quarter as bad credit ate into its investments, the company said Thursday. ... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 9:40 am
SCI Entertainment, the owner of the Tomb Raider games, announces steep losses and a major business revamp. Source: BBC News | Business | World Edition | 29 Feb 2008 | 9:40 am
Japanese stocks fell sharply Friday as the yen climbed to its highest level against the dollar in nearly three years following U.S. Federal Reserve Chairman Ben Bernanke's pessimistic... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 9:34 am
My comment yesterday concerning the possible troubles on the horizon for private equity vehicles came to fruition today with the news that hedge fund Peleton has been forced to liquidate its assets with a virtual wipe out of client monies. Source: Telegraph Business | 29 Feb 2008 | 9:28 am
GCap Media has rejected a revised offer from Global Radio that valued
Britain's biggest commercial radio broadcaster at £333 million. Source: Latest Business News from Times Online | 29 Feb 2008 | 9:27 am
Media giant Time Warner Inc. said Thursday its Warner Bros. Entertainment studio would absorb its New Line Cinema unit, an independent studio that redistributed quirky films like "Reefer Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 9:24 am
Nationwide says house prices fell by 0.5% in February, but warns against gloomy economic predictions. Source: BBC News | Business | World Edition | 29 Feb 2008 | 9:17 am
GCap Media, the owner of Capital, Classic FM and Xfm radio stations, on Friday rejected a revised offer from Global Radio, the private-equity backed company chaired by Charles Allen, the former ITV boss... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 9:05 am
Asian markets fell and the dollar neared 3-year lows against the yen, while oil and gold hit fresh highs, after the Federal Reserve chief warned that some small US banks could fail Source: FT.com - US homepage | 29 Feb 2008 | 9:02 am
Asian markets headed into the weekend on a sour note as a warning from Federal Reserve chairman Ben Bernanke that some small US banks could collapse refreshed fears about the state of the US economy. Crude... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 9:02 am
European shares on Friday looked set to end the week with losses, as financial stocks moved lower again, and concerns over the struggling U.S. economy and triple-digit oil prices continued to depress sentiment.
The world's second-largest advertising group said the subprime crisis had had 'little or no impact' on its performance and predicted that 2008 should be 'a better year than 2007' Source: FT.com - US homepage | 29 Feb 2008 | 8:54 am
WPP, the world's second-largest advertising group, painted a bullish outlook for the coming year on Friday, as it announced revenue growth of 5 per cent to 6.18bn. The company said the subprime crisis... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 8:54 am
WPP, the world's second-largest advertising company, today issued a remarkably
upbeat forecast about market conditions after growing sales and profits by 5
per cent last year. Source: Latest Business News from Times Online | 29 Feb 2008 | 8:53 am
A Russian newspaper on Friday predicted trouble ahead for Moscow's strategic South Stream gas pipeline, saying the project could be held up by difficult relations with neighbouring Ukraine. Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 8:52 am
India is to cancel the debt of its small farmers in a giant scheme that will cost 600bn rupees ($15bn; £7.6bn). Source: BBC News | Business | World Edition | 29 Feb 2008 | 8:50 am
NEW YORK (Reuters) - Bain Capital and China's Huawei Co. plan to resubmit an application seeking U.S. approval for a planned $2.2 billion buyout of 3Com Corp within the next several... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 8:40 am
Edgar Terry says the biggest threat to his hundreds of acres of strawberries isn't bugs or bad weather. Instead, he says, it's a new regulation aimed at reducing pollution from the... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 8:33 am
Stocks sank yesterday as investors, already concerned about a rise in unemployment claims, sold off when Federal Reserve Chairman Ben Bernanke said there could be more bank failures. The Dow Jones industrial... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 8:25 am
Vivendi SA's Universal Music Group, the world's largest music company, agreed to buy Univision Communications Inc.'s music assets, gaining the biggest Latin record company in the US. Univision will continue... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Feb 2008 | 8:25 am
House prices continued their downward trend in February for the fourth month
running, the UK's largest building society said today, but it insisted that
recession was still a "remote risk" for the UK economy Source: Latest Business News from Times Online | 29 Feb 2008 | 8:22 am
UK house prices fell for a fourth consecutive month in February, but the prospect of Britain sliding into recession is "remote", according to the latest survey from mortgage lender Nationwide. Source: Telegraph Business | 29 Feb 2008 | 8:12 am
Star of sports comedy 'Semi-Pro' should continue his winning streak of big openings.
As a race-car driver in "Talladega Nights: The Ballad of Ricky Bobby," he opened to a smokin' $47 million. As an ice skater in "Blades of Glory," he cruised to a cool $33 million.
When asked about the possibility of the price going that high, president says, 'That's interesting, I hadn't heard that.' He also says a tax hike on oil companies would drive the price up further.
The prospect of sharply higher fuel prices, including $4-a-gallon gasoline, may not have made it into Oval Office briefing books, perhaps explaining why President Bush was surprised Thursday when a reporter mentioned what energy analysts are saying could happen soon in many parts of the country.
Bargain prices entice drinkers abroad to taste California's harvest.
With the declining value of the U.S. dollar and increasing wine sales overseas, Charles Shaw wine, an American favorite, may seem in some places more like "One-Buck Chuck."
The $140-million deal would give the new owner 49% of the Latin music market.
Seeking to become el grande in the growing U.S. Latin music market, Universal Music Group on Thursday said it had agreed to buy Univision Communications Inc. 's record division.
Rising unemployment claims and Fed chief's remarks on probable bank failures end a four-day rally.
Stocks sank Thursday as investors fretted over a rise in unemployment claims and the prospect of more bank failures. The Dow Jones industrial average fell 112 points, breaking a four-day winning streak.
Revenue and staff declines leave some news unreported.
At the San Jose Mercury News, reporters have been instructed to wait at home on the morning of March 7. If they don't get a phone call by 10 a.m. telling them that they've lost their jobs, they should head to work.
The studio behind 'The Lord of the Rings' and other popular movie franchises will become a significantly smaller version of itself.
Roll the credits on New Line Cinema, the 40-year-old studio behind such iconic movie franchises as "The Lord of the Rings," "Austin Powers" and "A Nightmare on Elm Street."
Close Brothers, the 130-year-old investment bank, has said it is no longer in
takeover talks. Source: Latest Business News from Times Online | 29 Feb 2008 | 7:57 am
LONDON (Reuters) - British house prices fell for a fourth month running in February to post the lowest annual rate of inflation in more than two years, the Nationwide Building Society said... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 7:46 am
Japan's core consumer price index rose 0.8 percent in January from a year earlier, the government said Friday, amid concerns that rising oil and commodities prices could dampen consumer... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Feb 2008 | 7:40 am
Lord Black of Crossharbour, the disgraced newspaper tycoon, must go straight
to jail on Monday, a Chicago court has ruled. Source: Latest Business News from Times Online | 29 Feb 2008 | 7:31 am
Reuters - Plans for sweeping federal programs
that would aid troubled mortgage borrowers would bring unfair
relief to speculators and reward investors who made bad bets,
Treasury Secretary Henry Paulson said on Thursday. Source: Yahoo! News: Business | 29 Feb 2008 | 5:43 am
CHICAGO (Reuters) - Plans for sweeping federal programs that would aid troubled mortgage borrowers would bring unfair relief to speculators and reward investors who made bad bets, Treasury Secretary Henry Paulson said on Thursday.
New rules forcing investment advisers to disclose more information, including commissions, come into force tomorrow.
Commerce Minister Lianne Dalziel said the rules would be a "leap forward" in giving investors extra pr... Source: New Zealand Herald - Business | 29 Feb 2008 | 3:07 am
NEW YORK (Reuters) - American International Group Inc on Thursday posted its biggest-ever quarterly loss, missing Wall Street expectations after being hurt by a write-down of securities exposed to bad mortgage investments.
Reuters - American International Group Inc
on Thursday posted its biggest-ever quarterly loss,
missing Wall Street expectations after being hurt by a
write-down of securities exposed to bad mortgage investments. Source: Yahoo! News: Business | 29 Feb 2008 | 2:19 am
Centro Properties, one of Australia's biggest credit squeeze casualties, reports a $1.1bn first-half loss and says it has drawn expressions of interest for two of its funds Source: FT.com - US homepage | 29 Feb 2008 | 1:45 am
Hillary Clinton's advisers said she was on course to raise $35m in February, the highest monthly total of her presidential campaign and more than double her total for January Source: FT.com - US homepage | 29 Feb 2008 | 1:27 am
Auckland International Airport (AIA) shareholders are swinging behind the Canadian Pension Plan Investment Board (CPP) merger plan.
By Wednesday, CPP had 10.33 per cent of the company and 10.9 per cent of shareholders had voted... Source: New Zealand Herald - Business | 29 Feb 2008 | 1:00 am
New Zealand had a monthly trade deficit of $320 million in January, well down on the $825m a year earlier.
The annual trade deficit was down to $4.8 billion from $6b in the year to January 2007, Statistics New Zealand (SNZ) said... Source: New Zealand Herald - Business | 29 Feb 2008 | 12:30 am
American International Group joined the list of the biggest losers from the credit crisis by announcing almost $15bn of writedowns and losses related to subprime mortgage exposure Source: FT.com - US homepage | 29 Feb 2008 | 12:14 am
AP - More evidence of a consumer spending malaise surfaced Thursday as Sears Holdings Corp. and Kohl's Corp. reported double-digit profit drops in the fourth-quarter.
Robert Pickering has resigned from his post as chief executive of Cazenove in a surprise move that has triggered speculation about the future of the blue-blooded investment bank. Source: Telegraph Business | 29 Feb 2008 | 12:01 am
Britons' confidence in the economy has sunk to the lowest level since the early 1990s in the wake of the Northern Rock crisis and further gloom surrounding the housing market. Source: Telegraph Business | 29 Feb 2008 | 12:01 am
American International Group, the world's largest insurer by assets, has produced its biggest-ever quarterly loss as a public company after taking an $11.12bn (£5.63bn) write-down on investments linked to US sub-prime mortgages. Source: Telegraph Business | 29 Feb 2008 | 12:01 am
A sole wheat trader has triggered losses of $141.5m (£70.9m) at MF Global after a failure in the commodity broker's trading technology allowed him to breach trading limits. Source: Telegraph Business | 29 Feb 2008 | 12:01 am
Royal Bank of Scotland chief executive Sir Fred Goodwin, the man who spearheaded the £47bn consortium takeover of Dutch rival ABN Amro last year, has ruled out further acquisitions after shrugging off the worst of the credit crunch to post an 8pc increase in full-year profits. Source: Telegraph Business | 29 Feb 2008 | 12:01 am
British American Tobacco (BAT) is to buy the tobacco interests of Denmark’s
Skandinavisk Tobakskompagni (ST) in a £1.15 billion deal that is intended to
cement its position in Northern Europe and in the “snus” market. Source: Latest Business News from Times Online | 29 Feb 2008 | 12:00 am
The co-founder of one of Britain’s best-known dot-com companies yesterday
launched a withering attack on plans for a £30,000-a-year tax on
nondomiciled residents. Source: Latest Business News from Times Online | 29 Feb 2008 | 12:00 am
An energy industry regulator described as a “thorn in the side” of the big six
power supply companies has jumped ship to the private sector after Centrica
reportedly offered to nearly double his salary. Source: Latest Business News from Times Online | 29 Feb 2008 | 12:00 am
A wheat trader at MF Global, one of the world's biggest commodities brokerages, lost $141.5m
by making "unauthorised" trades, the company reported, in the latest trading controversy to hit global markets Source: FT.com - US homepage | 28 Feb 2008 | 11:38 pm
Performance management software company Sonar6 has appointed Chris de Boer as Chairman of the Board.
Mr de Boer has extensive experience in investment banking, regulation, private equity, venture capital, stock broking and business... Source: New Zealand Herald - Business | 28 Feb 2008 | 11:30 pm
The sharemarket eased in early trading after Wall Street dropped 0.9 per cent on renewed recession fears and worries about bank collapses.
Air New Zealand fell 3c to 173 despite hiking its dividend by two thirds to 5cps.
The... Source: New Zealand Herald - Business | 28 Feb 2008 | 11:30 pm
Dell, the personal computer maker, sought to reassure Wall Street about its turnround plan after it reported a drop in net profit for the fourth quarter Source: FT.com - US homepage | 28 Feb 2008 | 11:10 pm
Air New Zealand, 80 per cent owned by the Government, today reported it lifted its December half year net profit by 58 per cent to $115 million.
It hiked its interim dividend by two thirds to 5 cents per share.
Deputy chairman... Source: New Zealand Herald - Business | 28 Feb 2008 | 10:30 pm
The New Zealand dollar is holding at high levels against the greenback but continuing to slip against other major currencies.
Having topped US82c on Wednesday night for the first time since being floated 23 years ago, the kiwi... Source: New Zealand Herald - Business | 28 Feb 2008 | 10:30 pm
Many leading private equity firms are raising tens of billions of dollars for new funds in spite of declining returns on old deals and growing difficulties in making additional acquisitions Source: FT.com - US homepage | 28 Feb 2008 | 10:21 pm
Shares in healthcare provider Metlifecare plunged 9 per cent, 49c to $5.01, after it reported a December half year net loss of $12.3 million.
Last year under different accounting rules, it reported a net profit of $14.6m. Its property... Source: New Zealand Herald - Business | 28 Feb 2008 | 9:30 pm
Communications and Information Technology Minister David Cunliffe has told Telecom he will not approve its amended separation plan.
"I have issued Telecom with a notice of requirements of further changes needed to their undertakings... Source: New Zealand Herald - Business | 28 Feb 2008 | 9:30 pm
Marshall Herskovitz, co-creator of Quarterlife, the made-for-the-Web show that debuted on NBC on Tuesday night, had a bad feeling the minute he saw the first episode on the (relatively) big screen.
Just days before, Herskovitz was proclaiming a new direction for network television based on Quarterlife's journey from the Web to NBC. Now, after the show's debut episode managed a paltry 3.1 million viewers, the network is apparently giving up on it and shuttling it off to Bravo, its much smaller cable cousin.
"I was in my hotel room in New York with four other people, including two of the series' stars," says Herskovitz. As the show—originally pitched to ABC in 2004, but repurposed for the Web before being picked up by NBC last November—began, everyone seemed to be loving it. Everyone, that is, except Herskovitz, who says, "I turned to them after two minutes and said 'This will never work on television.'"
The show's ratings were particularly poor given the prime placement of Quarterlife after the popular The Biggest Loser, which gets an estimated 7.4 million viewers a week.
That's a disappointment for Herskovitz, one half of the Emmy-winning team behind shows like Thirtysomething and My So-Called Life, who said before the show aired that he thought Quarterlife could pioneer a new content model for the struggling network TV business. But just a few days later, he played it off like he had known better all along.
"What am I going to say to someone before something premieres? That I have grave doubts?" Herskovitz says now. "I've had grave doubts for months about whether we could get the audience necessary to survive on NBC, but there's no point in talking about that before the fact." Herskovitz points to the different techniques used to establish and develop TV and Web characters as one major reason the show didn't come across well on Tuesday.
The flop is also a disappointment for Ben Silverman, the recently installed co-chairman of NBC Entertainment and Universal Media Studios, who had been a huge fan of Quarterlife since before he joined the network last spring and was hoping the show's Web-to-TV move could be a new model for developing new shows. Neither Silverman nor anyone else at NBC was available for comment today, but Herskovitz was blunt about the network's reaction.
"They were deeply upset by the numbers," he says, before adding that, "while [3.1 million viewers is] a dismal failure for NBC, it would be a huge hit on most cable networks."
There's been a lot of noise recently about trouble stalking CBS. A steep 16 percent ratings decline this season led the network to fall behind Fox into the No. 2 spot, while the writers' strike threatened to drive down revenue for all of the media conglomerate's television holdings.
But when CBS Corp. reported fourth quarter results this week, it was the radio division rather than television that was the real dog in terms of profit.
CBS Radio's operating income for the fourth quarter of 2007 decreased 22 percent to $159.6 million while revenues decreased 7 percent, excluding 39 recently divested stations. For the year, operating income was down 16 percent overall; revenue decreased 6 percent.
That's because TV's ratings shortfalls and advertising concerns are nothing compared with the problems plaguing terrestrial radio. CBS had nothing to blame sour results on other than the need to divest 39 stations in 10 markets, and a sluggish year for ad sales overall.
Barry Parr, a media analyst for Jupiter Research Group, identifies two issues squeezing terrestrial radio stations.
One is that listeners' options are mushrooming. Abundant internet content, the proliferation of portable digital audio from music to podcasts, and the advent of satellite radio have all combined to make good old-fashioned radio less and less compelling.
"If you start talking about internet streaming, suddenly you're in a word where traditional radio is just one of a zillion products," says Parr. "And in many ways, it's not a very attractive product online."
Offerings on the internet include not only a wealth of audio streaming commercial-free, but now even the likes of BlogTalk radio—a site which essentially allows anyone to broadcast their own radio show for free over the internet.
And while internet offerings have long been stealing their share of listeners at home, terrestrial radio is steadily losing listeners on the road as well. Many cars now come equipped with options like satellite radio and mp3 device hookups, allowing drivers to listen to downloaded music and podcasts as they drive.
A second threat facing terrestrial radio are changes in local advertising markets. As large national retailers push out local businesses, local radio stations lose some of their best advertisers. Large retailers like Best Buy or Sears prefer TV to radio, and have the money to spend on television.
CBS Radio's C.E.O. of less than a year, Dan Mason, pledges that CBS radio is in the midst of a turnaround.
Parr, the Jupiter Research analyst, said he believes that if they are to succeed, traditional players like CBS will have to focus on serving local communities rather than moving towards a national model. Parr said internet and satellite rivals can't yet deliver professional-level coverage of local news, so CBS would do best to focus its attention there.
"It's the same problem as newspaper business—losing audience and losing advertisers," says Parr. "It's not simply the internet, but the internet is part of it. It's definitely wrecking business models like this that rely on scarcity, which simply doesn't exist on internet." Related Links Imus Punches Back at The Eye Amazon Delivers Earnings Upside Siriusly Speaking
The ANZ National Bank denies it is being greedy by hiking mortgage interest rates.
The union for banking staff is complaining the bank is raising rates hard on the heels of declaring a massive profit, but chief economist Cameron... Source: New Zealand Herald - Business | 28 Feb 2008 | 9:00 pm
Payday loans that allow workers to borrow money in advance of their paycheck have often been criticized for having high interest rates. But new reports say the loans can actually benefit some consumers who have few other options. Janet Babin reports. Source: Marketplace | 28 Feb 2008 | 7:46 pm
More workers are tapping into their 401(k) accounts to spend money and pay off mounting debts. Stacy Vanek-Smith reports while there may be advantages to borrowing from yourself there are also huge risks. Source: Marketplace | 28 Feb 2008 | 7:46 pm
The Trade Adjustment Assistance program gives assistance to people who've lost their jobs because of international trade deals. Commentator Glenn Hubbard says the program does nothing to address the most critical reasons for job loss. Source: Marketplace | 28 Feb 2008 | 7:45 pm
Hillary Clinton and Barak Obama have been focusing on their opposition to NAFTA, the North American Free Trade Agreement. But will voters in Ohio, where thousands of manufacturing jobs have been lost, be persuaded? Mhari Saito reports. Source: Marketplace | 28 Feb 2008 | 7:45 pm
The Federal Trade Commission Chairwoman is stepping down. Her resignation is one of many which have left government regulatory agencies severely understaffed in the last year of the Bush Presidency. Jeremy Hobson reports. Source: Marketplace | 28 Feb 2008 | 7:45 pm
New problems in the municipal bond market are resulting in cities and municipalities paying record-high interest rates. And with cities making less from property taxes, some have no choice but to declare bankruptcy. Jill Barshay reports. Source: Marketplace | 28 Feb 2008 | 7:45 pm
Sears Holdings Corp. reported a 48% decline in quarterly profits as sales continued to fall at its Kmart and Sears stores. Will the slowing economy mean the death of the struggling retailer? Dan Grech reports. Source: Marketplace | 28 Feb 2008 | 7:45 pm
At President Bush's press conference he talked about everything from fighting AIDS to stimulating the economy. But his most passionate topic was why Congress should pass the warrantless wiretapping program. Kai Ryssdal has more. Source: Marketplace | 28 Feb 2008 | 7:45 pm
Prosecutors in Virginia are going after teenagers who take naked pictures of themselves and send them to their friends via their cell phones—and cell phone carriers aren't likely to do much about it.
As Portfolio.com has learned in an exclusive, Verizon Wireless and AT&T plan to roll out parental controls on text messaging, primarily focused on limiting the number of messages sent and received.
But a spokesperson for AT&T noted that the carrier does not control or have plans to add controls to what kids can send or view over text messages.
"Providers have no interest in reviewing peoples messages and consumers have no interest in having providers review peoples messages," said Joe Farren, a spokesperson for the trade group CTIA-The Wireless Association. "I can’t see a scenario where providers are going to screen text messages."
But it's an issue Virginia is pursuing. Assistant Commonwealth Attorney Wes Nance in Lynchberg said that teens who distribute these images are considered "child pornographers" as they are producing, proliferating, and possessing child pornography.
“This has been a growing problem in our area and other jurisdiction as more juveniles possess this technology,” said Nance.
He explains that teenagers who are romantically involved at the time the pictures are taken usually forward those photos onto third parties once the relationship has ended.
“These are cases we want to prevent from happening, juveniles inadvertently victimizing themselves,” said Nance.
Already two students have been prosecuted by a special internet task force at the Bedford County, Virginia, Sheriff’s Office and more investigations are underway.
But the pornography cases in Virginia, shrugged off by students but worrying parents, opens up more issues for the major carriers to consider in updating their services.
A recent AP video shows teens blasé about the popularity of the nudie photo-text-messaging craze, but parents are concerned about the photos, citing how they end up on the internet and possibly in the hands of predators.
Hundreds of O.C. stores, restaurants on list, from small markets to Knott's Berry Farm
The state Department of Public Health released the first comprehensive list of Southern California food retailers tied to a Chino slaughterhouse and the nation's largest beef recall.
Eddie Lampert loves the ancient art of letter writing. Today, with the announcement of Sears Holdings' fourth-quarter earnings, Lampert, the retailer's chairman and majority holder, starts his missive off with a surprising foray into sports commentary. He praises Eli Manning and the New York Giants.
"The Giants' story reminds me of what we went through a few years ago with Kmart," he writes, and Sears Holdings is like the unlikely Super Bowl champs. The clear implication: Eddie Lampert is like Eli Manning.
Is he?
Well, both Eddie and Eli are exceedingly bright. Manning scored an impressive 39 out of 40 on the Wonderlic, an exam given to N.F.L. players to test their smarts. Lampert went to Yale and Goldman Sachs. Both had dominant mentors: Lampert with Robert Rubin; Eli with his dad, Archie.
But that's where the similarities end. Everything has been handed to Eli. To the manor born was Eli, a golden-child whose path was paved by the successes of his father and older brother. Lampert, however, has an up-from-his-bootstraps story. He was a wunderkind. Eli, though, grew to be worthy of the mantle of greatness. By contrast, as soon as Eddie became known as the next Warren Buffett, he started to blow it.
Lampert lacks the stoicism-under-fire of Manning. When Eli Manning had his disastrous four-interception day against the Minnesota Vikings this past season, he didn't let it get to him. Sure, this infuriated New York sportswriters. But he shrugged, "Since I've been here, I've done a better job of trying not to take it so hard and let it affect my personality and let other people see me down." The No. 1 pick in the 2004 draft added. "That's just part of growing as a quarterback in the N.F.L., especially in New York."
Lampert is prone, on the other hand, to whining, even as he assiduously avoids the press. After reporting a dismal third quarter last year, Lampert complained that the media has given him and Sears a hard time, especially compared with other retailers, which were, according to Lampert, sucking just as much wind. "When other companies manage expenses carefully, it is often characterized as a sign of good management and prudence. In the case of Sears Holdings, meanwhile, expense controls are often cited as a root cause of poor performance."
Eli is a rising star, but Eddie is rehashing the old glory days. In his letter today, he waxes on about his successes with Kmart. When he took Kmart out of bankruptcy, "Kmart was like an undrafted free agent who nobody thought had a chance to play in the big leagues," Lampert writes nostalgically. But by late 2004, he says, "Kmart was on its way to earning almost $1 billion in Earnings Before Interest, Taxes, Depreciation, and Amortization (ebitda), had built up almost $4 billion in cash, and had virtually no debt."
Yes, but now Kmart and Sears have been merged for about three years. The market is right to ask: Is this all there is? Which brings us to the real sports comparison.
There is one team that sports fans are vaguely aware has a glorious past, but they haven't been close to a top-tier team for years. Football fans will bring this team into their homes once a year at Thanksgiving.
But it's really more out of ritual obligation, kind of like customers who might pop into Sears annually to grab a Craftsman tool or check out a Kenmore washer and dryer. This team loses Hall of Fame talent to premature retirements, just as Sears hemorrhages excellent merchandising executives.
And just as you watch with bafflement as this team loaded up on wide receivers with top draft picks, neglecting the blocking and tackling that is essential to winning football games, you see Lampert pulling in top managers like Aylwin Lewis, who came from the fast-food industry and didn't have a great retailing feel, while going cheap instead of spending money on the stores.
Yes, Sears isn't the New York Giants. It's the Detroit Lions.
AFP - Dutch bank ABN Amro reported a profits leap for 2007 on Thursday owing to special factors and despite a writedown of 1.561 billion euros (2.36 billion dollars) on account of the US subprime home-loan crisis.
FT.com - Rentokil Initial led the FTSE 100 lower on Thursday after a profit warning, while rumours that a London-based hedge fund was in trouble added to nervousness. Source: Yahoo! News: Business | 28 Feb 2008 | 5:00 pm
France has no monopoly on rogue traders. And the latest episode, involving a New York-based brokerage firm, involves one of the hottest markets of the moment: wheat.
MF Global, one of the world's largest commodity brokers, said one of its employees had caused a $141.5 million loss after he substantially exceeded his trading limit for his personal account.
The firm, an American spinoff of the giant London-based hedge fund manager Man Group, said that a failure in one of its order entry systems had allowed Evan Dooley, a broker in its Memphis office, "to establish significant positions in his own account, which were liquidated later that morning." While the firm's statement seemed to suggest that this "failure" was a technical one, on a conference call this morning, it was a described as a procedural matter that has since been changed. The broker has now been fired.
While the loss was small compared with the $7 billion loss sustained by French bank Société Générale last month after a trader made large, unauthorized bets on European stock indexes, it represented 6 percent of MF Global's total equity. In contrast to what happened at the French bank, the position was quickly spotted and disclosed the next day. Client funds were not affected, MF Global said.
The trader was betting on the price of wheat, which has been surging of late with world wheat supplies at 30-year lows.
The Financial Timesreports that the trader took a large short position on Tuesday night. That went bad when prices surged the next day. (Prices rose 25 percent on Wednesday.) MF Global liquidated that position, representing a few thousand lots, within hours of the market opening.
Dooley, the broker in Memphis, did not handle wheat trades for his customers, MF Global said. Kevin Davis, the firm's chief executive, when asked about the kind of collateral the broker had, said that Dooley "didn't have enough capital to support even a fraction" of his position.
Dooley told the Wall Street Journal in a brief interview that the firm's computer system had problems in "setting limits."
A day after getting a lift when its regulator lifted the cap on its portfolio, Freddie Mac has gotten smacked down.
The second-biggest buyer of American mortgages after Fannie Mae, the company said its loss swelled to $2.5 billion in the fourth quarter, much larger than expected. In the third quarter, Freddie Mac lost $2 billion.
The losses are mounting as the slump in housing deepens. Freddie Mac set aside more money in anticipation of a wave of mortgage defaults.
"Today's economy represents one of the most severe housing downturns in American history," said Richard Syron, Freddie Mac's chief executive.
Freddie Mac now expects credit losses of $2.2 billion this year and $2.9 billion next year.
Credit losses "are costing Freddie Mac valuable capital," Howard Shapiro, an analyst with Fox-Pitt Kelton Cochran Caronia Waller, told Bloomberg News. "Losses won't bottom out until next year."
Freddie's bigger sibling, Fannie Mae, reported a $3.6 billion fourth-quarter loss on Wednesday. Today, Moody's Investors Service said it would review its bank financial strength rating on Fannie and possibly lower it.
Fannie's loss, Moody's said, "exceeded our expectations and represents a significant deterioration of surplus regulatory capital."
The many challenges facing hedge fund manager Eddie Lampert as he launches another turnover attempt at Sears Holdings are starkly apparent today.
Sears, the parent of Sears and Kmart stores, reported a more than 47 percent decline in quarterly earnings, as sales fell and profit margins weakened amid a general slowdown in consumer spending.
More worrisome, the company's cash position fell to $1.6 billion at the end of the quarter, down more than half from $3.8 billion a year ago.
The drawdown could restrict the company's options when it comes to investment and promotions as it reorganizes into five business units. The overhaul, and the replacement of Sears' chief executive, was announced last month, a clear sign, Jesse Eisinger wrote on Portfolio.com at the time, that Lampert's original strategy was not working.
Most of the company's cash—$2.9 billion over the year—went to buying back Sears shares.
Lampert, in a letter to shareholders, hailed the use of cash for buybacks, which have reduced the number of outstanding Sears shares by 20 percent. "For those investors who have sold their shares, we have helped provide liquidity to exit their investment," he said. "For those investors who have held onto their shares, they get to participate to a greater extent in the company's future performance."
In the last three years, Sears has spent $4.3 billion on stock buybacks. Lampert's hedge fund is the biggest shareholder in Sears, with a 48 percent stake.
In his letter, Lampert, comparing his effort to the Super Bowl win of the underdog New York Giants (although he says he is a Jets fan), says that skeptics have not understood his strategy.
In response to criticisms about why Sears has not invested more in its 3,800 stores, Lampert says an investment cannot be justified if the store's profitability remains the same.
He goes on to say: "To be clear, we are not saying that we can't justify investing in our stores. The issue is more about the size and type of investment as well as the timing and sequencing of an investment. There are many things that a retailer can do to improve its business without the significant amounts of capital that a major remodel would require. Improving the assortment of products and services, mix of inventory, visual presentation, recruitment and training of employees, and marketing and communications to customers are all ways to generate improved performance. They all require significant investments, but we already invest a significant amount of capital and expense in all of these areas."
Sears spent $580 million in capital investments last year, significantly less than the $2 million per store envisioned when Sears and Kmart merged more than three years ago.
For the quarter, Sears earned $426 million, or $3.17 per share, compared with $811 million, or $5.27 per share, a year earlier. Revenue fell nearly 7 percent, to $15 billion. Sales at Sears and Kmart stores open at least a year declined 4.5 percent.
Lampert has played down the importance of quarterly performance, preferring to focus on the long term. Three years after the merger, however, the pressure is mounting to start showing some signs of a turnaround.
Such pressure may come from the investors in Lampert's $15 billion hedge fund. In any case, it is certain to come from Lampert's own pride.
As Eisinger noted in his in-depth examination of the hedge fund manager's failed tinkering with Sears in Condé Nast Portfolio, there is much at stake: "Once hailed as the Warren Buffett of his generation, Lampert, at 45, now has another turnaround job on his hands: his own reputation."
Reuters - Oil fell to $102 a barrel on Friday,
stepping back from a record high reached due to supply
disruptions and as a weak U.S. dollar encouraged investors to
buy commodities.
Reuters - Leading U.S. stock index futures fell
before the start of Wall Street trading on Friday with the
focus on consumer spending data amid growing worries about a
recession and the implications for corporate profits.
AP - More evidence of a consumer spending malaise surfaced Thursday as Sears Holdings Corp. and Kohl's Corp. reported double-digit profit drops in the fourth-quarter.
AFP - Dutch bank ABN Amro reported a profits leap for 2007 on Thursday owing to special factors and despite a writedown of 1.561 billion euros (2.36 billion dollars) on account of the US subprime home-loan crisis.