NEW YORK (Reuters) - Stock index futures slid on Thursday as the latest signs of global credit stress rattled investors two days after a Fed-led move to inject cash into the financial system.
WOLFSBURG, Germany (Reuters) - Volkswagen , the world's fourth-largest carmaker, confirmed widespread speculation that it was concentrating its search for a new North American plant in the United States.
A unit of private equity firm Carlyle Capital faces collapse after failing to pay back lender banks. Source: BBC News | Business | World Edition | 13 Mar 2008 | 11:51 am
The Carlyle Group was forced to admit that it had failed to save its troubled $22bn mortgage backed-securities fund less than eight months after floating the heavily leveraged vehicle on Euronext Amsterdam Source: FT.com - US homepage | 13 Mar 2008 | 11:48 am
HELSINKI (Reuters) - Nokia has paid Qualcomm around $1 billion over 15 years for full access to the chip maker's early mobile technology patents, the world's top handset maker said in court documents.
Reuters - Stock index futures slid on Thursday
as the latest signs of global credit stress rattled investors
two days after a Fed-led move to inject cash into the financial
system.
Nestle, the maker of KitKat and Nescafe, unexpectedly raises its sales predictions for the year. Source: BBC News | Business | World Edition | 13 Mar 2008 | 11:33 am
The dollar breached the Y100 level against the Japanese yen for the first time in 12 years and hit a fresh low against the euro, leaving equity markets around the world reeling Source: FT.com - US homepage | 13 Mar 2008 | 11:32 am
BT has made two high-profile appointments to its board, in former health secretary Patricia Hewitt, and Lloyds TSB chief executive Eric Daniels. Source: Telegraph Business | 13 Mar 2008 | 11:20 am
The dollar dipped below 100 yen for the first time in 12 years today and hit record lows against the euro amid a growing consensus that synchronized efforts by central banks will not stop a deterioration in the U.S. economy.
SAN FRANCISCO (Reuters) - Electronic Arts Inc on Thursday launched a tender offer for rival video game maker Take-Two Interactive Software Inc at $26 a share, indicating its $2 billion bid is turning hostile.
Tesco has made the first change to its executive management team at Fresh &
Easy, its fledging American supermarket chain, <i>The Times</i> has learnt. Source: Latest Business News from Times Online | 13 Mar 2008 | 11:18 am
Reuters - An affiliate of U.S.-based buyout
firm Carlyle Group has defaulted on about $16.6 billion of debt
and expects its lenders to seize remaining assets as the global
credit crunch tightens around leveraged investors.
AMSTERDAM (Reuters) - An affiliate of U.S.-based buyout firm Carlyle Group has defaulted on about $16.6 billion of debt and expects its lenders to seize remaining assets as the global credit crunch tightens around leveraged investors.
Home Retail Group, the owner of Argos and Homebase, this morning warned of a
bleak outlook in the retail sector as it announced that full year sales
growth would be hit by a slowdown in consumer spending. Source: Latest Business News from Times Online | 13 Mar 2008 | 11:02 am
Volkswagen AG, Europe’s largest carmaker, plans to introduce 20 new models over the next three years and expand its international footprint in an effort to boost annual deliveries.
LONDON (MarketWatch) -- When a mortgage-bond fund says it's on the verge of collapse, less than 48 hours after the Federal Reserve announced a plan meant to unlock the market in precisely those securities, it's tempting to conclude the plan hatched by the U.S. central bank can be judged a failure.
U.S. stock futures wilted on Thursday after a fund managed by The Carlyle Group admitted it’s close to collapse, showing that a Federal Reserve-led boost of liquidity is having a limited impact on troubled credit markets and dragging the dollar below a key level for the first time since 1995.
Italian power firm Enel is to sell assets to cut its debt, as it announces a 31% rise in profits. Source: BBC News | Business | World Edition | 13 Mar 2008 | 10:55 am
LONDON (Reuters) - The dollar tumbled below 100 yen on Thursday, underlining concerns among monetary officials about extreme currency moves, while equities sank as worry about serious stress in credit markets persisted.
The collapse of a private equity fund sparked renewed concerns about liquidity levels in the financial system on Thursday, further damaging sentiment as the dollar continued to weaken.Equity markets around... Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 10:47 am
Halcyon Asset Management, an $11.5bn New York-based hedge fund company, is set to become the latest alternative investment house to go public, after agreeing to be bought by 'blank cheque' company Source: FT.com - US homepage | 13 Mar 2008 | 10:47 am
The dollar tumbled to its lowest in 12 years against the Japanese yen and was weaker against a string of currencies as fears for the health of the US economy deepened. Source: Telegraph Business | 13 Mar 2008 | 10:45 am
Reuters - Senior lawmakers from Japan's ruling and
opposition parties called for a breakthrough by Monday in the
stalemate over a new Bank of Japan governor, in an effort to
avoid a policy vacuum during the global credit market crisis.
TOKYO (Reuters) - Senior lawmakers from Japan's ruling and opposition parties called for a breakthrough by Monday in the stalemate over a new Bank of Japan governor, in an effort to avoid a policy vacuum during the global credit market crisis.
Gold renewed an assault on the key $1,000 level on Thursday while oil prices held close to the record above the $110 mark reached in the previous session. Helped by renewed weakness in the dollar and ongoing... Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 10:32 am
Gazprom announced that it had reached an agreement on natural gas with Ukraine, putting an end to last week's tense standoff in which supplies to Ukraine – a key transit artery to Europe – were cut by more than half Source: FT.com - US homepage | 13 Mar 2008 | 10:28 am
Sir Ken Morrison was on Thursday appointed honorary president as the supermarket chain he built over 55 years reported record profits and promised to return 1bn of surplus capital to shareholders. Pre-tax... Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 10:22 am
Carlyle Capital, the bond fund affiliated with private equity firm The Carlyle Group, is on the verge of collapse after failing to agree a new financing deal with lenders.
The dollar tumbled below 100 yen on Thursday, European shares were down 2.2 percent and Japanese equities lost more than 3 percent. Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 10:17 am
Carlyle Capital Corporation (CCC), the Dutch-listed affiliate of US private
equity firm Carlyle, admitted today it is likely to be liquidated after
failing to reach an agreement with its lenders. Source: Latest Business News from Times Online | 13 Mar 2008 | 10:15 am
Shares of China Railway Corp. bucked the broader sell-off Thursday on the Hong Kong Stock Exchange, ending 12% higher in their debut as investors remained upbeat on the company's prospects as a beneficiary of Beijing's big infrastructure spending plans.
Gazprom strikes a deal to supply gas to Ukraine for the rest of the year following last week's three day supply cut. Source: BBC News | Business | World Edition | 13 Mar 2008 | 10:14 am
The Societe Generale employee detained for questioning about the rogue trader scandal is released. Source: BBC News | Business | World Edition | 13 Mar 2008 | 9:59 am
Carlyle Capital Corp. said it was in default on margin calls of over $400 million and its lenders would likely take possession of its remaining assets. Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 9:51 am
The dollar dipped below 100 yen for the first time in 12 years today amid growing worries about a U.S. economic slowdown and expectations for lower U.S. interest rates. Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 9:51 am
PARIS (Reuters) - An employee of Societe Generale has been freed by police, the day after he was arrested in connection with a probe into a rogue trading scandal at the bank, the Paris... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 9:49 am
PARIS (Reuters) - An employee of Societe Generale has been freed by police, the day after he was arrested in connection with a probe into a rogue trading scandal at the bank, the Paris prosecutor's office said.
The UK's largest broadband supplier calls for the industry to be clearer about how it advertises net speeds. Source: BBC News | Business | World Edition | 13 Mar 2008 | 9:47 am
Reuters - The dollar tumbled below 100 yen on
Thursday, underlining concerns among monetary officials about
extreme currency moves, while equities sank as worry about
serious stress in credit markets persisted.
Renewed fears of financial turmoil on Thursday sent the U.S. dollar plunging against the Japanese yen and other major currencies, with the greenback temporarily falling through the psychologically key 100-yen level. The dollar also set new all-time lows against the euro and the Swiss franc and dropped to its weakest level against the British pound since December.
Oil prices on Thursday were near an overnight record above $110 a barrel as investors looked to commodities as a safe haven against the U.S. dollar's slide. In Asia, the dollar sank to Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 9:38 am
Stock markets across Europe and Asia plummeted this morning as the dollar
slumped to new lows and fears grew that the US Federal Reserve's surprise
$280 billion liquidity bailout will fail to stop a full-blown recession.$ Source: Latest Business News from Times Online | 13 Mar 2008 | 9:36 am
The dollar tumbled to its lowest in 12 years against the Japanese yen and was weaker against a string of currencies as fears for the health of the US economy deepened. Source: Telegraph Business | 13 Mar 2008 | 9:35 am
The dollar tumbled to its lowest in 12 years against the Japanese yen and was weaker against a string of currencies as fears for the health of the US economy deepened. Source: Telegraph Business | 13 Mar 2008 | 9:35 am
The FTSE 100 fell fast on Thursday, as London traders joined the sell-off on world equities markets on renewed concern about a US recession. The benchmark index fell 2.2 per cent to 5,653.5, a loss of... Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 9:35 am
Question: I have a continuing debate with a classmate of mine regarding why a financial adviser does not include calculations/spreadsheets when determining asset allocation. My classmate claims it is trade secrets. I claim that the adviser doesn't know how to do/explain the calculations and blindly plugs the client's financial information in a system and reports the answer. Who do you think is right?
Asian and European shares fall as optimism over a recent central bank cash injection is replaced by deeper fears. Source: BBC News | Business | World Edition | 13 Mar 2008 | 9:30 am
TOKYO (Reuters) - Jiro Yanase, the man who paved the way for many foreign automakers to break into the Japanese market and helped European brands become a status symbol here, has died at... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 9:26 am
The government is showing considerable ingenuity in devising new tactics to fight the credit crunch. But some observers fear that the innovations risk making matters worse - by fueling inflation and insulating executives who made reckless bets from the full wrath of the market.
Nearly 60 percent more U.S. homes faced foreclosure in February than in the same month last year, with Nevada, California and Florida showing the highest foreclosure rates, a research... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 9:16 am
Reuters - The head of Toyota Motor Corp (7203.T)
said he expected steady demand in North America this year
despite a slowing economy, and said the automaker may need to
take steps to counter a surging yen.
TOKYO (Reuters) - The head of Toyota Motor Corp said he expected steady demand in North America this year despite a slowing economy, and said the automaker may need to take steps to counter a surging yen.
The dollar fell below 100 yen Thursday for the first time since November 1995. The dollar slipped as low as 99.75 yen in Asian trading before bouncing back to 100.18 yen. The U.S.... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 9:13 am
Nearly 60 percent more U.S. homes faced foreclosure in February than in the same month last year, with Nevada, California and Florida showing the highest foreclosure rates, a research... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 9:01 am
China's industrial output slowed in early 2008 as firms were hit by lower exports, official data shows. Source: BBC News | Business | World Edition | 13 Mar 2008 | 8:55 am
The dollar slumped through the psychological support level of Y100 for the first time in more than 12 years in early European trading on Thursday, adding to the litany of economic headaches facing Japan's... Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 8:52 am
MOSCOW (Reuters) - Russia's gas export monopoly Gazprom has reached a final gas agreement with Ukraine's state energy firm Naftogas after two days of talks in Moscow, the Russian firm said... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 8:45 am
The state gas monopolies of Russia and Ukraine have reached a deal resolving differences that came to a head in a three-day gas cut-off last week, Gazprom said in a statement on Thursday. Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 8:34 am
Wm Morrison today signalled a turnaround for the once troubled supermarket
chain's fortunes as profits climbed 66 per cent and the group pledged to
return £1 billion to shareholders over two years. Source: Latest Business News from Times Online | 13 Mar 2008 | 8:25 am
The embattled Chancellor Alistair Darling has defended his revised growth forecasts as realistic, even as the crisis that has shaken financial markets since last summer appears to be deepening. Source: Telegraph Business | 13 Mar 2008 | 8:20 am
PARIS (Reuters) - European Central Bank President Jean-Claude Trichet said disorderly swings in currencies were undesirable, according to an interview with a French magazine ... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 8:17 am
Supermarket chain Morrisons sees its profits almost double as its chairman Sir Ken Morrison retires. Source: BBC News | Business | World Edition | 13 Mar 2008 | 8:11 am
Sports Direct International made gross profit of 142m on turnover of 317m in its third quarter and said it was confident of meeting consensus forecast.Britain's biggest sports goods retailer opened 15... Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Mar 2008 | 8:10 am
Japan's main stock index plunged to its lowest close in 2 1/2 years Thursday, as market anxieties were stirred by the dollar's dive against the yen and by persistent concerns about the... Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Mar 2008 | 7:29 am
The residential boom many expected in an area with 'rough edges' didn't happen. Now, condo prices are skidding.
Downtown Los Angeles has seen a much-heralded revival in the last few years, with thousands of people moving in and a flock of new restaurants and upscale stores opening to serve them. Attractions such as Staples Center and the Nokia Theatre are helping support premium eateries and a lively club scene.
The moves could help investors frozen in the securities because of the credit crunch.
A growing number of investment funds say they're stepping up plans to return cash to investors who have been stranded in so-called auction-rate preferred stock -- one of the recent casualties of the credit crunch.
Southwest Airlines temporarily grounded several dozen planes and canceled flights Wednesday as the nation's largest low-cost carrier was hit with its second safety inspection problem in a week.
One day after posting huge gains, stocks slide as volatile energy prices add to concerns.
Wall Street's euphoria over the Federal Reserve's latest move to cure the credit crunch turned to caution Wednesday, leading stocks to retreat a day after their biggest rally in more than five years.
Ratings firm Nielsen will get anonymous information on the habits of 330,000 cable subscribers.
Charter Communications Inc. said Wednesday that it would sell information it collects about the viewing preferences of 330,000 of its cable TV customers in the Los Angeles area.
Steve Mendell of closed Westland/ Hallmark company tells lawmakers, 'My system broke down.'
The president of the Chino meatpacking plant that triggered the largest beef recall in U.S. history admitted Wednesday that crippled cows, which are more likely to carry disease, probably entered the food supply at his company.
NEW YORK (Reuters) - U.S. policy makers, led by Treasury Secretary Henry Paulson, will recommend a revamp of rules on credit markets and mortgage brokers, to help avoid a repeat of the recent credit crunch, the Wall Street Journal reported on Wednesday.
Wall Street hasn't had a lot to celebrate lately, but Eliot Spitzer's departure from public office was enough to make even those with the tiniest bonuses pony up for another round.
Still, there's one man that isn't likely to let the party go on for long: the ambitious New York attorney general Andrew Cuomo. Just as one powerful Democratic legal powerhouse falls, another may use the opportunity to emerge.
"It's a net plus for Cuomo," says securities attorney Bill Singer. "Now he doesn't have to worry about being compared to Mr. Perfect."
Cuomo became the state's top lawyer in November of 2006 after Spitzer left to become governor. Spitzer left some big shoes to fill—during his eight-year reign in office, the former attorney general never let his sights off of the corruption on Wall Street, and he left more than a few unemployed, irate executives in his wake.
Cuomo came into the position with every intention of continuing Spitzer's legacy as the tough cop on the corporate America beat. He picked up where Spitzer left off on cases like the one against former N.Y.S.E. chief Richard Grasso. His first major investigation into the student loan industry erupted into a front-page scandal and, in the spirit of Spitzer, resulted in fat settlements and reformed lending practices.
But Cuomo has been unable to escape the comparisons to his legendary predecessor, by his own fault at times. After Cuomo was criticized by federal regulators for overstepping his bounds in the investigation into mortgage lending practices last fall, he invited Spitzer to stand beside him at a press conference to strengthen support.
Meanwhile, the relationship between Cuomo and Spitzer created its own headlines, as the two watchdogs have a contentious history. Cuomo planned to run for governor himself in 2006 but dropped out when he learned that Spitzer would go for the Democratic ticket. Then, not long after Spitzer took the governorship, a scandal in his own office erupted, prompting an investigation by Cuomo's office followed by a scathing report. Since then, their relationship looks more like one between "frenemies" than friends.
Now, Spitzer is gone. Cuomo issued this statement yesterday: "My thoughts and prayers are with the entire Spitzer family as they cope with this personal tragedy. Obviously, this is an extraordinarily difficult time for the family and for the entire state of New York. David Paterson, who has years of experience in state government, is a talented leader, a wonderful man, and a great friend. I look forward to working closely with Governor Paterson as he leads us forward. New York State faces many challenges and we have much work to do. Let us all work together, with a shared purpose, to make New York better for all its citizens."
Perhaps Spitzer's legacy on Wall Street won't be remembered as one that Cuomo failed to follow, but instead as one that was followed by a prostitution scandal. The older-sibling burden has been lifted from Cuomo's shoulders.
But Cuomo still has great political aspirations. And, like Spitzer, he will continue to use his attorney general platform to get to the office that Spitzer failed to hold onto. And that means more headline-grabbing investigations.
And Cuomo's not alone, of course. Connecticut attorney general Richard Blumenthal, Massachusetts secretary William Galvin, and Ohio attorney general Marc Dann are other democrats following Eliot Spitzer's legacy in financial law enforcement. They won't likely lose momentum because of his downfall, either.
So, enjoy the party Wall Street. Enjoy it while it lasts.
A hint of Barry Diller's relationship with his erstwhile partner John Malone surfaced Wednesday in the courtroom battle for control of Internet services conglomerate IAC/InteractiveCorp.
In an email introduced in Delaware Chancery Court, Diller told former General Electric C.E.O. Jack Welch that working with Liberty Media chairman Malone as the "usual nightmare." Today, the blunt-spoken and sometimes volatile Diller will have a chance to elaborate when he takes the stand in Vice Chancellor Stephen Lamb's courtroom.
Diller, who has built IAC into a $5 billion company with Diller's backing, wants to spin off four businesses in a deal that would dilute Liberty's control. Liberty says that would breach longstanding agreements between the companies.
Liberty has long had super majority voting rights in IAC; that in theory gives it the power to block a breakup. The sticking point: Malone gave Diller a proxy to vote Liberty's shares. Can Diller now cast Liberty's votes against Liberty's interests?
Malone, the silver-haired Liberty chairman, took the stand on Monday. And as the first star in what has been billed as a Battle of the Moguls, he delivered an icy and detached performance. His emotion or blood pressure did not seem to rise, even as he related his disagreement with his associates' plan to annul Diller's proxy to—an idea he attributed to "brain damage."
Diller is expected to deliver more fireworks. The Beverly Hills native has a combative temperament; Malone, by contrast, is an engineer who's been called "Doctor" throughout the trial, which began Monday.
But Diller faces a tough challenge this morning: He needs to convince Lamb that his course of action is right, and Lamb is closer in personality to Malone. A former partner from Skadden, Arps, Slate, Meagher & Flom. Lamb is such no-nonsense judge, say those who know him.
"He's very controlled," says Lawrence Hamermesh of Widener University School of Law in Wilmington, Delaware. "I don't know of anybody who is more deliberate in the way he conducts himself in the courtroom." And, Hamermesh adds, "He's not interested in capturing headlines: Steve's very dry."
Lamb has rolled his eyes a few times during the trial so far and scolded Liberty's counsel, Kevin Abrams of Abrams & Laster, for putting words into the mouths of his witnesses.
On Diller's side, he has able counsel in Wachtell, Lipton, Rosen & Katz, a firm that has seen its way around Delaware Chancery Court for decades. He's made it through at least one previous tussle for corporate control in the Delaware courts—and won.
In December 1993, the Delaware Supreme Court ruled that Paramount Communications had not been fair to shareholders when it blocked a takeover bid from Diller's QVC Inc. Some have described he Diller/Malone as harkening back to the slugfest over control of Paramount.
Whether he succeeds this time may hinge on his testimony today.
Reuters - U.S. policy makers, led by Treasury
Secretary Henry Paulson, will recommend a revamp of rules on
credit markets and mortgage brokers, to help avoid a repeat of
the recent credit crunch, the Wall Street Journal reported on
Wednesday.
Retail sales rose by a seasonally adjusted 0.3 per cent in January, Statistics New Zealand (SNZ) said today.
The figure was right on the median expectation in a Reuters poll of economists, and followed at 0.1 per cent increase... Source: New Zealand Herald - Business | 13 Mar 2008 | 2:55 am
CtW Investment calls on investors at next month's annual meeting to vote against the re-election of Morgan Stanley's chairman and chief executive, accusing him of 'risk management failures' Source: FT.com - US homepage | 13 Mar 2008 | 1:03 am
Reuters - U.K. hedge fund Toscafund Asset
Management LLP has approached Washington Mutual Inc ,
offering to participate in any consortium looking to
recapitalize the bank, The Wall Street Journal reported on
Wednesday. Source: Yahoo! News: Business | 13 Mar 2008 | 12:58 am
George W. Bush did not request the resignation of Admiral William Fallon, his military commander in the Middle East, to step down, the White House said Source: FT.com - US homepage | 13 Mar 2008 | 12:34 am
Oil prices climbed above $110 a barrel, marking a milestone in a remarkable rally, which has been fuelled by weakness in the US dollar Source: FT.com - US homepage | 13 Mar 2008 | 12:10 am
Stephen Marks, the founder of fashion retailer French Connection, said yesterday that he has no plans to take the company private, despite the share price having plummeted. Source: Telegraph Business | 13 Mar 2008 | 12:01 am
With Cheltenham blown off course yesterday, I stumble on a different race that could go down to the wire. Andrew "Bertie" Black and Ed Wray own 13pc each of Betfair, the online betting exchange they launched right towards the end of the dotcom boom. Source: Telegraph Business | 13 Mar 2008 | 12:01 am
About 4,000 people who lost savings when their pension schemes were wound up by solvent companies stand to receive financial aid from the Government. Source: Telegraph Business | 13 Mar 2008 | 12:01 am
Costain, the British engineering group which built the Eurostar terminal at St Pancras, London, has posted its first dividend in 17 years. Source: Telegraph Business | 13 Mar 2008 | 12:01 am
<a href="http://business.timesonline.co.uk/tol/business/economics/"><b>Economics</b></a> Source: Latest Business News from Times Online | 13 Mar 2008 | 12:00 am
Two months after it was issued, January's profit warning from Hochschild
Mining might appear something of an irrelevance. Source: Latest Business News from Times Online | 13 Mar 2008 | 12:00 am
The crisis at Société Générale deepened yesterday as police raided the French
bank and arrested a second trader in connection with the €4.9 billion (£3.75
billion) losses run up by the rogue trader Jérôme Kerviel. Source: Latest Business News from Times Online | 13 Mar 2008 | 12:00 am
Alistair Darling's footling initiatives yesterday were a sideshow. There is
one overwhelming challenge facing the business world and it is not going to
be addressed by £10 million more for science teachers or £12 million for
women entrepreneurs. Source: Latest Business News from Times Online | 13 Mar 2008 | 12:00 am
Chinese suppliers are asking some of the biggest clothing chains for price
increases of more than 10 per cent in a fresh sign of the growing
inflationary risks facing the economy. Source: Latest Business News from Times Online | 13 Mar 2008 | 12:00 am
Hillary Clinton stepped up pressure to hold fresh primary elections in Florida and Michigan as Barack Obama extended his lead in the popular vote and among elected delegates after his thumping victory in Mississippi Source: FT.com - US homepage | 12 Mar 2008 | 11:36 pm
The US will avoid a severe and prolonged recession similar to Japan's in the 1990s because US policymakers will do whatever it takes to avert such an outcome, the Federal Reserve believes Source: FT.com - US homepage | 12 Mar 2008 | 11:33 pm
The euro sets a new record against the dollar as doubt remains whether the Federal Reserve's plans will work. Source: BBC News | Business | World Edition | 12 Mar 2008 | 11:24 pm
It's D-Day for the Canadian bid to buy a 40 per cent stake in Auckland International Airport but those hanging out for the verdict could be in for a long wait.
The late flood of shareholder returns today means unless clear cut... Source: New Zealand Herald - Business | 12 Mar 2008 | 11:00 pm
The local sharemarket opened flat today as Wall Street's rally petered out with credit concerns to the fore.
US investors initially had extended yesterday's huge rally on the back of the Federal Reserve's co-ordinated action with... Source: New Zealand Herald - Business | 12 Mar 2008 | 10:40 pm
Reuters - Discount retailer Target Corp
said on Wednesday that it is in talks with an investment
partner to sell an undivided interest in about half of its
credit-card receivables for about $4 billion.
Falcons hold a special place in the United Arab Emirates, so it's probably no surprise that they have a hospital especially for their care. Kai Ryssdal has more. Source: Marketplace | 12 Mar 2008 | 10:24 pm
Shareholders aren't impressed by Government interference in their affairs, according to a spokesman representing their interest.
Shareholders Association chairman Bruce Sheppard said Government meddling has pushed "Mum and Dad"... Source: New Zealand Herald - Business | 12 Mar 2008 | 9:30 pm
SYDNEY - Higher interest rates and rising food and fuel costs saw consumer sentiment collapse in March to its lowest level in almost 15 years, a survey says.
The Westpac-Melbourne Institute consumer sentiment index fell 9.1 per... Source: New Zealand Herald - Business | 12 Mar 2008 | 9:30 pm
The United Arab Emirates is an Islamic country, but sometimes it's hard to tell -- especially in Dubai. Which is a surprise for some Muslims who move there. Amy Scott reports. Source: Marketplace | 12 Mar 2008 | 9:09 pm
The Middle East Broadcasting Company runs the Al Arabiya news channel, a competitor to Al Jazeera. It's run by a member of the Saudi royal family, Sheikh Waleed bin Ibrahim. Kai Ryssdal spoke with him at his office in Dubai's Media City. Source: Marketplace | 12 Mar 2008 | 9:04 pm
Sharia, or Islamic, law shows up in a lot of different businesses in the Middle East, including the hospitality trade. Somewhat less-strict but still Islamic-friendly hotels are popping up all over the Middle East, including Dubai. Sean Cole checked them out. Source: Marketplace | 12 Mar 2008 | 9:04 pm
Islam frowns on wasting natural resources. It's a nod to tribal days when survival depended on it. Today some Middle Eastern businesses are reaching back to those green Islamic roots to get an edge on the global competition. Sam Eaton reports. Source: Marketplace | 12 Mar 2008 | 9:04 pm
Under Islamic law in Saudi Arabia, unrelated men and women can't mix in public. Courtship and marriages are traditionally arranged. But young Saudis are starting to resist -- and technology's helping them bend the rules. Kelly McEvers reports from Riyadh. Source: Marketplace | 12 Mar 2008 | 9:04 pm
Pakistan's President Pervez Musharraf has offered to give up his powers to dissolve parliament if key opposition parties agree to drop their insistence on the re-instatement of Iftikhar Mohammad Chaudhry, the former supreme court chief justice Source: FT.com - US homepage | 12 Mar 2008 | 9:00 pm
John Banks says he understands why "Mum and Dad" investors would "flog off" their Auckland International Airport shares but he believes the Canadian Pension Plan deal offers nothing for the council.
The Auckland City Mayor told... Source: New Zealand Herald - Business | 12 Mar 2008 | 9:00 pm
Motorists are now paying more for petrol than ever before with a three cent a litre rise overnight.
Shell, BP and Caltex lifted their prices at the pump overnight. That move takes the price in the main centres to $1.78 a litre... Source: New Zealand Herald - Business | 12 Mar 2008 | 8:00 pm
Shares in recently listed Diligent Board Member Services Inc took a 17 per cent dive yesterday.
Executives in the New York based company were not immediately available to comment.
The 11 cent slump to a record low of 54 cents... Source: New Zealand Herald - Business | 12 Mar 2008 | 8:00 pm
While the outlook for agriculture is finely balanced, farmers have good reasons for optimism, according to a report by agricultural bank Rabobank.
"A lift in pricing is emerging for agricultural commodities globally based on fundamentally... Source: New Zealand Herald - Business | 12 Mar 2008 | 7:45 pm
Stock exchange chief executive Mark Weldon has been named a Young Global Leader by the World Economic Forum.
The forum selected 245 young leaders from more than 60 countries this year, 121 of which are business leaders.
The... Source: New Zealand Herald - Business | 12 Mar 2008 | 7:30 pm
Eliot Spitzer was swept into office as New York's governor in a landslide 2006 election. Today, just a bit more than a quarter of the way into his first term, he resigned in shame.
"The remorse I feel will always be with me and words cannot describe how grateful I am for the love and compassion they [family members and supporters] have shown me," Spitzer told reporters in Manhattan.
"I look at my time as governor with a sense of what might have been," he said. But he added, "I cannot allow my private failings to disrupt the people's work."
Spitzer's term officially ends Monday, when Lieutenant Governor David Paterson takes over. Paterson, a 53-year-old former Senate minority leader goes into the history books with two firsts: the state's first African American governor and first legally blind chief executive.
Spitzer was felled by an investigation into some unusual expenditures he was making, which in turn led to an investigation of an expensive and exclusive prostitution service. To help him in whatever legal fight he faces, Spitzer hired lawyer Michele Hirshman, a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Hirshman had served as Spitzer's first deputy when he was the New York attorney general.
Spitzer's rapid downfall began early Monday afternoon, when the New York Times reported online that he was linked to the arrest last week of the operators of a business called Emperors Club V.I.P. That firm charged $1,000 an hour for what it described as a "three-diamond" prostitute and $3,100 an hour for a "seven-diamond" call girl.
The website offered clients membership in the Emperors Club's Icon Club, a status that allowed the clients to access restricted areas of the website and permitted them to schedule appointments for illegal prostitution services with the highest-ranked prostitutes, whose fees started at $5,500 an hour.
According to Wednesday's New York Post, Spitzer's appetite for prostitutes went back 10 years and cost him $80,000.
In his brief statement, Spitzer made no comments on his legal situation or to the allegations, beyond citing his "private failings." He said that he hoped in the future to "try once again outside of politics to serve the common good." He took no questions.
Toward the end of his appearance, Spitzer quoted Confucius: "Our greater glory lies not in never having fallen, but rising when we fall.”
The resignation announcement came after Spitzer spent Tuesday sequestered in his Central Park apartment on New York City's Fifth Avenue. According to media reports, state Democrats showed little support for their party's governor and some raised the prospect that Spitzer would be impeached if he remained in office.
During his eight years as New York State's attorney general, a job that allowed him to pursue civil and criminal prosecutions against corporate officers, Spitzer took on some of the most powerful people on Wall Street. He was easily elected governor in 2006, running largely on his record as a Wall Street reformer.
His targets included Dick Grasso, who was then chairman of the New York Stock Exchange, and Ken Langone, who was Grasso's biggest supporter on the exchange's board. Spitzer also pressured insurance giant American International Group to force out Maurice Greenberg, its longtime chief executive and chairman, and exposed Henry Blodget, then a Merrill Lynch analyst, for hyping stocks to help investment bankers sell their services to clients.
"We all have our own private hells," Langone told CNBC. "I hope his private hell is hotter than anyone else's."
On Monday, after the story first broke, Spitzer faced reporters but did not directly address the prostitution allegations. Instead, Spitzer he said he wanted to "briefly address a private matter" without being more specific.
"I have acted in a way that violated the obligations to my family and that violates my—or any—sense of right and wrong," said Spitzer, who is married and has three daughters. "I apologize first, and most importantly, to my family. I apologize to the public, whom I promised better," he said.
"I do not believe that politics in the long run is about individuals," he added. "It is about ideas, the public good, and doing what is best for the state of New York. But I have disappointed and failed to live up to the standard that I expect of myself. I must now dedicate some time to regain the trust of my family."
He concluded by saying, "I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much."
Also on Portfolio.com:
Parsing Spitzer: Jack Flack pulls apart the governor's resignation.
Eliot Spitzer, slammed by a scandal that implicated him as a customer in a high-priced prostitution ring, plans to announce today his resignation as New York's governor, according to media reports. The resignation will take effect Monday.
Spitzer was felled by an investigation into some unusual expenditures he was making, which in turn led to an investigation of the exclusive prostitution service. To help him in whatever legal fight he faces, Spitzer hired lawyer Michele Hirshman, a partner at Paul Weiss Rifkind Wharton & Garrison. Hirshman had served as Spitzer's first deputy when he was New York attorney general.
With Spitzer out, the new governor of New York will be Lt. Gov. David Paterson. The former Senate minority leader, 53, goes into the history books with two firsts: the state's first African American governor and first blind chief executive.
Spitzer's rapid downfall began early Monday afternoon, when the New York Times reported online that he was linked to the arrest last week of the operators of a business called Emperors Club V.I.P. That firm charged $1,000 an hour for what it described as a "three-diamond" prostitute and $3,100 an hour for a "seven-diamond" call girl.
The website offered clients membership in the Emperors Club's Icon Club, a status that allowed the clients to access restricted areas of the website and permitted them to schedule appointments for illegal prostitution services with the highest-ranked prostitutes, whose fees started at $5,500 an hour.
According to Wednesday's New York Post, Spitzer's appetite for prostitutes went back 10 years and cost him $80,000.
Spitzer spent Tuesday sequestered in his Central Park apartment on New York City's Fifth Avenue. According to media reports, state Democrats showed little support for their party's governor and some raised the prospect that Spitzer would be impeached if he remained in office.
During his eight years as New York State's attorney general, a job that allowed him to pursue civil and criminal prosecutions against corporate officers, Spitzer took on some of the most powerful people on Wall Street. He was easily elected governor in 2006, running largely on his record as a Wall Street reformer.
His targets included Dick Grasso, who was then chairman of the New York Stock Exchange, and Ken Langone, who was Grasso's biggest supporter on the exchange's board. Spitzer also pressured insurance giant American International Group to force out Maurice Greenberg, its longtime chief executive and chairman, and exposed Henry Blodget, then a Merrill Lynch analyst, for hyping stocks to help investment bankers sell their services to clients.
"We all have our own private hells," Langone told CNBC. "I hope his private hell is hotter than anyone else's."
On Monday, after the story first broke, Spitzer faced reporters but did not directly address the prostitution allegations. Instead, Spitzer he said he wanted to "briefly address a private matter" without being more specific.
"I have acted in a way that violated the obligations to my family and that violates my—or any—sense of right and wrong," said Spitzer, who is married and has three daughters. "I apologize first, and most importantly, to my family. I apologize to the public, whom I promised better," he said.
"I do not believe that politics in the long run is about individuals," he added. "It is about ideas, the public good, and doing what is best for the state of New York. But I have disappointed and failed to live up to the standard that I expect of myself. I must now dedicate some time to regain the trust of my family."
He concluded by saying, "I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much."
Also on Portfolio.com:
Parsing Spitzer: Jack Flack pulls apart the governor's public apology.
AOL may be the last thin hope for Yahoo as it scrambles to come up with an alternative to being swallowed by Microsoft. Jeff Bewkes, the new chief executive of AOL's parent, Time Warner, has now buoyed those hopes, telling a Bear Stearns media conference on Tuesday that he would consider a combination of AOL with another company. "Whatever configuration makes it the strongest and most valuable," he said.
But the real story at AOL, report Saul Hansell and Louise Story of the New York Times, is the recent turmoil in the unit's executive suites as it attempts a wrenching shift from a subscriber business to selling ads at a time when the market is softening.
Earlier this week, Curtis G. Viebranz, one of the four top executives named to run AOL's new advertising division, Platform A, was fired, the Times says.
Citing "several recently departed executives," the paper says that "there had been confrontational meetings of employees as well as screaming matches in offices, as senior executives worried about making their aggressive quarterly ad-sales goals."
Henry Blodget, on Silicon Alley Insider, quotes an unnamed source close to the company, who says AOL is "disintegrating."
He says talks between Time Warner and Yahoo are continuing, but are not advanced.
"A source suggests that Jeff Bewkes is currently planning to give the AOL 'turnaround' until midyear to work," he says.
A spinoff or sale of part or all of AOL would be likely to follow if the turnaround does not succeed.
Asian and European markets rose sharply today, following an overnight rally on Wall Street.
Investors are optimistic that a plan by the Federal Reserve to lend $200 billion in Treasury securities in exchange for mortgage-backed securities and other debt can steady the turbulent credit markets.
The Nikkei index in Japan closed up 1.6 percent. Hong Kong ended up 1.9 percent. European markets are up more than 1 percent in midday trading. China's mainland markets were the exception, slumping on worries over accelerating inflation.
On Tuesday, U.S. stocks soared, with the benchmark Standard & Poor's 500-stock index rising 3.7 percent, for its biggest gain since October 2002. The Dow Jones industrial average rose 416.7 points, or 3.6 percent, its best day since March 2003.
The most important dimension of the new Fed auctions is that the accepted collateral has now been broadened to include Fannie Mae and Freddie Mac securities and triple-A residential mortgage-backed securities, the market for which has been nearly paralyzed by the housing crisis. And the loans will be for 28 days instead of overnight. The auctions will be held weekly, beginning March 27.
Ockham Research, on the Seeking Alpha blog, says, "This proposed solution will not eliminate the problems in the credit market, but our hope as well as the Fed's hope is that the injection of liquidity will make these big banks more able to withstand margin calls in the future."
Despite the rally, others say that the Fed plan will not be enough to correct a credit crisis triggered by the collapse of the housing market.
"They are essentially creating a $300 billion bank out of nothing," said Lou Crandall, chief economist at Wrightson ICAP, a financial research firm, told the New York Times. "It doesn't solve the fundamental issue, which is the decline of capital in the banking system."
A new $300 billion bank? Okay, but Citigroup has $2.2 trillion of assets on its balance sheet, notes Yves Smith on the Naked Capitalism.
"The Fed is simply too small an actor, relative to the global banking system, to have enough impact," she says.
Reuters - Stock index futures slid on Thursday
as the latest signs of global credit stress rattled investors
two days after a Fed-led move to inject cash into the financial
system.
Reuters - An affiliate of U.S.-based buyout
firm Carlyle Group has defaulted on about $16.6 billion of debt
and expects its lenders to seize remaining assets as the global
credit crunch tightens around leveraged investors.
Reuters - Senior lawmakers from Japan's ruling and
opposition parties called for a breakthrough by Monday in the
stalemate over a new Bank of Japan governor, in an effort to
avoid a policy vacuum during the global credit market crisis.
AFP - Stock markets in Europe and Asia plummeted amid credit woes, a weak dollar and record high oil prices, dealers said Thursday.
Reuters - The dollar tumbled below 100 yen on
Thursday, underlining concerns among monetary officials about
extreme currency moves, while equities sank as worry about
serious stress in credit markets persisted.
Reuters - The head of Toyota Motor Corp (7203.T)
said he expected steady demand in North America this year
despite a slowing economy, and said the automaker may need to
take steps to counter a surging yen.
Reuters - U.S. policy makers, led by Treasury
Secretary Henry Paulson, will recommend a revamp of rules on
credit markets and mortgage brokers, to help avoid a repeat of
the recent credit crunch, the Wall Street Journal reported on
Wednesday.
Reuters - Discount retailer Target Corp
said on Wednesday that it is in talks with an investment
partner to sell an undivided interest in about half of its
credit-card receivables for about $4 billion.