Country homes could lose as much as 5pc of their value this year, according to upmarket estate agent Knight Frank, as the slowdown in the housing market widens. Source: Telegraph Business | 9 Apr 2008 | 12:05 pm
Sainsbury's retail director Ken McMeikan will join bakery chain Greggs as chief executive in June to succeed long-standing boss Sir Michael Darrington. Source: Telegraph Business | 9 Apr 2008 | 11:30 am
Sainsbury's retail director Ken McMeikan will join bakery chain Greggs as chief executive in June to succeed long-standing boss Sir Michael Darrington. Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 11:30 am
NEW YORK (Reuters) - The Federal Reserve is looking at contingency plans for bolstering its lending power in case recent measures it has taken to unfreeze the credit markets fail, the Wall Street Journal reported on Wednesday.
NEW YORK (Reuters) - Stock index futures inched higher on Wednesday as news that Citigroup Inc , the largest U.S. bank, is close to a deal to sell about $12 billion of leveraged loans and bonds to strengthen its balance sheet tempered anxiety about corporate profits.
The Hong Kong budget airline Oasis stops flying and applies for liquidation, leaving passengers stranded. Source: BBC News | Business | World Edition | 9 Apr 2008 | 11:11 am
Among the companies whose shares are expected to see active trade in Wednesday’s session are ADC Telecom, the European brewers, Walt Disney, Form Factor, Microsoft, Motorola, Northwest Air, P&G, Sealy, UPS and Yahoo.
Stocks looked to have trouble in the early going on more upheaval among some key financial firms and UPS warning of a slowdown in the packages it's carrying.
HONG KONG (Reuters) - Hong Kong-based budget carrier Oasis Hong Kong Airlines said on Wednesday it had halted flights and would go into liquidation after just 17 months in the air as record high fuel prices and stiff competition triggered heavy losses.
The perilous state of the U.K. housing market was back in the spotlight on Wednesday, with HBOS lower after Credit Suisse turned negative but home builders higher after Goldman Sachs pointed out the recent rally from U.S. peers.
NEW YORK (Reuters) - Applications for U.S. home mortgages jumped last week, fueled by the ongoing increase in activity for government-backed loan programs, according to data published by an industry group on Wednesday.
CHICAGO (MarketWatch) -- Mortgage application filings rose a seasonally adjusted 5.4% last week compared with the last week of March, the Mortgage Bankers Association reported on Wednesday.
Citigroup (NYSE: C) seems to have come up with a deal to sell over $12 billion in problem corporate debt, some of it likely from LBO transactions. The buyers are the astute private equity firms Blackstone (NYSE: BX), Apollo Management, and TPG. The odd aspect of the transaction is that the portfolio is being sold for "an average of slightly less than 90 cents on the dollar," according to The Wall Street Journal. The firms doing the buying have reputations for being unusually adroit at making money. It would be safe to assume, then, that they think the paper is...
Miners led European shares lower on Wednesday, with both the sector and the broader market weakening for the second straight day against a background of ongoing worries about the strength of the global economy.
Societe Generale chairman Daniel Bouton told a parliament committee hearing on Wednesday that the French bank was "doing just fine" despite a rogue-trading scandal that led to billions of... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 10:46 am
Two-bedroom apartments at $3,200 a month sparking bidding wars. Cash deposits of $6,000 made on the spot. Manhattan? Dubai? Think again. While the rest of North America is mired in housing pain, the market is scorching in Fort McMurray, Alberta.
Oasis Airlines in Hong Kong is shutting down. According to MarketWatch "Oasis Chief Executive Stephen Miller told a news conference all flights were being canceled immediately." Oasis gets to join a growing list of airlines which have vanished into thin air. Large US carrier ATA is one of these, and Alitalia says it is almost out of money. So far, the market's reaction to the risk to large US carriers has been muted. The stocks of AMR (AMR), Delta (DAL), United (UAUA), and Northwest (NWA) may be at 52-week lows, but they have found, at least for now, a bottom....
As surely as baseball heralds the spring, poor economic reports presage layoff season. According to Mercer Consulting, one in three midsize to large U.S. companies is pondering job freezes or downsizing. Besides the obvious no-no's - completing projects late, griping noisily about the boss - here are seven strategies for deflecting a pink slip.
PARIS (Reuters) - Futures were down on Wednesday, pointing to a lower opening on Wall Street, as earnings concerns continue to dampen the mood, but news that Citigroup could dent its... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 10:32 am
Japan’s parliament approved the nomination of Masaaki Shirakawa as governor of the Bank of Japan Wednesday, resolving a political deadlock over leadership of the central bank.
The U.S. dollar was mostly lower against other major currencies in European trading Wednesday morning. Gold fell. The euro traded at $1.5729, up from $1.5721 late Tuesday in New York. Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 10:21 am
Congress is set Wednesday to take up several proposals to stabilize the housing market, a day after partisan differences over the best way to help homeowners came into sharper focus.
"So, we beat on, boats against the future, born back ceaselessly into the past"--F Scott Fitzgerald, "The Great Gatsby" John Thain, former co-president of Goldman Sachs (GS) and CEO of The New York Stock Exchange (NYX) says that his new firm, Merrill Lynch (MER), will not have to raise more capital. His Ouija board told him it was so. John Mack, former CEO of almost every investment bank in the world and now head of Morgan Stanley (MS) says that he sees the light at the end of the mortgage crisis tunnel. Several institutions tried to vote Mack out as...
Americans are becoming increasingly worried about saving for their retirement as the nation's economic outlook continues to darken, according to a new survey of workers and retirees released Wednesday.
Asia-Pacific equities were mostly down on Wednesday, with Shanghai hit the hardest, slumping 5.5 per cent, with large caps falling the most.The Shanghai Composite index's declines accelerated in mid-afternoon,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 10:15 am
Not too long ago, there wasn't much reason for Bob Scocozzo to venture to downtown Wilkes-Barre, Pa. Retail shops and restaurants were scarce, the streets were dark and the area was usually deserted after 5 p.m.
Question: Having just read several of your articles on retirement planning, I have these questions regarding tax deferred and taxable accounts during retirement:
The British pound fell to a new all-time low against the European single currency on expectations that falling house prices will leave the Bank of England no choice but to cut interest rates this week.
Denmark tops the table of most networked economies, followed by Sweden and Switzerland. Source: BBC News | Business | World Edition | 9 Apr 2008 | 10:01 am
U.S. stock futures dropped on Wednesday as the lowered guidance from delivery giant UPS exacerbated worries about the impact of a struggling economy on corporate profits.
Disgraced stock-picking guru Bill Miller of Legg Mason says he will support Yahoo!'s (YHOO) efforts to stay independent if Microsoft (MSFT) lowers the value of its offer to buy the portal company. Since Miller has lost more money for his investors that the US Treasury keeps on deposit, he might be better off keeping his opinions out of the newspaper. But, he is a plucky lad and will not be held down by a few tough quarters. According to The Wall Street Journal "Mr. Miller said that the current value of Microsoft's offer -- $29.17 per share as of 4...
Asian markets slipped deeper into the red Wednesday with financials such as Mitsubishi UFJ Financial Group in Tokyo, National Australia Bank in Sydney and Ping An Insurance (Group) Co. of China in Hong Kong reacting to worries about global credit markets and a decline on Wall Street.
The pound retreated from a record low against the euro and recouped earlier losses against the dollar on Wednesday after UK output data came in stronger than expected, denting expectations for aggressive... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 9:39 am
BOSTON (Reuters) - Diversified U.S. manufacturer Honeywell International Inc said on Tuesday it won a $23 billion contract to supply engines for Brazilian aircraft maker Embraer's ... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 9:32 am
BOSTON (Reuters) - Diversified U.S. manufacturer Honeywell International Inc said on Tuesday it won a $23 billion contract to supply engines for Brazilian aircraft maker Embraer's midsized business jets.
Hand it to Michael Dell. His company, Dell (NASDAQ: DELL) is in talks with the sovereign fund in Dubai to get a big juicy check. But, instead of just cash, Dell is putting together a joint venture to help market PCs in the Middle East. With growth in the US and Europe slowing, the region is one of the few were businesses and consumers still have a strong appetite for processors and big display screens. According to The Wall Street Journal "The possibility of a relationship with Tecom Investments emerged in comments by Michael Dell, the company's chief executive, during...
NEW YORK (Reuters) - Delta Air Lines Inc and Northwest Airlines could proceed with their merger announcement as early as next week if Delta's management wins in talks with its pilots, the Wall Street Journal said citing people familiar with the situation.
NEW YORK (Reuters) - Delta Air Lines Inc and Northwest Airlines could proceed with their merger announcement as early as next week if Delta's management wins in talks with its pilots, the Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 9:26 am
HSBC is preparing to target more than one million mortgage customers who come off cheap fixed-rate deals this year and face a rise in mortgage costs. The banking giant will offer to match homeowners’ existing deals for a further two years. Source: Telegraph Business | 9 Apr 2008 | 9:20 am
HSBC is preparing to target more than one million mortgage customers who come off cheap fixed-rate deals this year and face a rise in mortgage costs. The banking giant will offer to match homeowners existing... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 9:20 am
New federal restrictions meant to prevent the spread of bovine tuberculosis may force the state's livestock producers to spend more time and money shipping their cattle and bison out of... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 9:11 am
The chancellor stands by his growth forecasts for 2008 and 2009 despite a downgrade by the IMF. Source: BBC News | Business | World Edition | 9 Apr 2008 | 9:06 am
A former director of the New York Mercantile Exchange faces jail after admitting fraud linked to commodities trading. Source: BBC News | Business | World Edition | 9 Apr 2008 | 9:01 am
The South African state power company says electricity prices need to double in the next two years. Source: BBC News | Business | World Edition | 9 Apr 2008 | 8:59 am
The European Union's top competition regulator approved on Wednesday a move by French car-maker Renault to buy a stake in Avtovaz, Russia's biggest auto producer and manufacturer of the... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 8:59 am
UK factory output grew faster than expected in February, rising at its best rate in more than a year, figures show. Source: BBC News | Business | World Edition | 9 Apr 2008 | 8:55 am
HSBC is preparing to target more than one million mortgage customers who come off cheap fixed-rate deals this year and face a rise in mortgage costs. The banking giant will offer to match homeowners’ existing deals for a further two years. Source: Telegraph Business | 9 Apr 2008 | 8:29 am
HSBC is preparing to target more than one million mortgage customers who come off cheap fixed-rate deals this year and face a rise in mortgage costs. The banking giant will offer to match homeowners existing... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 8:29 am
NEW YORK (Reuters) - A major Yahoo Inc shareholder, Legg Mason, is ready to back Yahoo's effort to stay independent if Microsoft Corp lowers its buyout offer, the Wall Street Journal said, citing an interview with portfolio manager Bill Miller.
SENDING a sigh of relief through the investment sales community, Ashkenazy Acquisitions and The Carlyle Group closed their deal for 650 Madison Ave. on Tuesday night for $680 million. It is the largest... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 8:18 am
Former Federal Reserve Chairman Paul Volcker questioned the Fed's decision to back a loan to an investment bank, saying the decision was at "the very edge" of its legal authority. "The Federal Reserve... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 8:18 am
Fannie Mae and Freddie Mac shares will tumble to $16 or less, Goldman Sachs Group says. At Lehman Brothers Holdings, analysts are telling their clients the shares will soar to $45 or more. The dueling... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 8:18 am
ENTREPRENEUR Media, pub lisher of Entrepreneur magazine, is on the block for $200 million, as longtime owner Peter Shea finally appears to be ready to cash out. Yesterday, Entrepreneur President and... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 8:18 am
Don't expect AOL to be LOL over Facebook's new push into instant messaging. Time Warner's struggling online unit could be the big loser if the surging social networking service's new chat feature, now... Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Apr 2008 | 8:18 am
Sterling has tumbled to a record low against the euro, breaching the 80 pence mark for the first time, as the gloom surrounding the British economy deepens. Source: Telegraph Business | 9 Apr 2008 | 8:15 am
According to Reuters, Citigroup (C) will sell $12 billion in troubled loans to a group of private equity firms. Reuters reports that some members of the Fed believe that the US will hit a sharp downturn. Reuters writes that Alan Greenspan has said the US is in recession. Reuters reports that Washington Mutual (WM) got a $7 billion cash infusion and cut a number of jobs. Reuters writes that American Air (AMR) cancelled a number of flights to inspect MD-80 aircraft. The Wall Street Journal writes that the Fed is weighing options of what it might do if the credit...
Ryanair is referred to the UK's Office for Fair Trading (OFT) after a string of complaints about its adverts. Source: BBC News | Business | World Edition | 9 Apr 2008 | 7:44 am
Reuters - A major Yahoo Inc
shareholder, Legg Mason, is ready to back Yahoo's effort to
stay independent if Microsoft Corp lowers its buyout
offer, the Wall Street Journal said, citing an interview with
portfolio manager Bill Miller.
NEW YORK (Reuters) - A major Yahoo Inc shareholder, Legg Mason, is ready to back Yahoo's effort to stay independent if Microsoft Corp lowers its buyout offer, the Wall Street Journal said,... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 7:38 am
The pound fell to a historic low point against the euro in early trading on Wednesday on the back of poor economic prospects and expectations of a cut in British interest rates. Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 7:35 am
Most markets in Asia fell. The Nikkei was off 1.1% to 13,112. Dentsu was up 3.4% to 247000. Sony (SNE) was down 1.4% to 4150. The Hang Seng fell 1.3% to 23,989. China Life (LFC) was down 4% to 28.9. China Petroleum (SNP) was down 4.5% to 6.96. The Shanghai Composite dropped 5.5% to 3,414. Data from Reuters Douglas A. McIntyre
Tomorrow it's decision time again for the UK's Monetary Policy Committee and as always, the question is, will they or won't they cut interest rates? Source: Telegraph Business | 9 Apr 2008 | 7:29 am
The German trade surplus edged lower in February but still came in well above analysts' expectations, figures released on Wednesday by the federal statistics office showed. ... Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Apr 2008 | 7:26 am
Reuters - Japan's central bank downgraded its
growth outlook on Wednesday in the face of a global credit
crisis, delivering a bleak outlook just as its youngest
governor in 50 years was confirmed in his job.
NEW YORK (Reuters) - Citigroup Inc , the largest U.S. bank, is close to selling about $12 billion of leveraged loans and bonds to a group of private equity firms, people familiar with the situation said on Tuesday.
Reuters - The Federal Reserve is looking at
contingency plans for bolstering its lending power in case
recent measures it has taken to unfreeze the credit markets
fail, the Wall Street Journal reported on Wednesday. Source: Yahoo! News: Business | 9 Apr 2008 | 7:03 am
The measure in the state Senate calls for peace officers aboard vessels sailing out of California ports.
A bill that would require peace officers aboard cruise ships sailing from California ports cleared its first hurdle Tuesday as the state Senate's public safety committee voted to move it forward in the legislative process.
Demand for the government's discount coupons is outpacing supply. Officials worry that many people are still unaware of next year's switch.
With broadcast TV stations preparing to switch to all-digital signals early next year, about 5.3 million U.S. households have taken the government up on its offer of discount coupons for a gadget to ensure their sets will continue to get the picture.
Profits are down for firms that pay for labor and raw materials in yuan but sell their products for dollars. Some companies are moving a few operations to Vietnam.
Any day now, China's rapidly appreciating currency will break the key barrier of seven yuan to the dollar. Los Angeles-based Wessco International is dreading it.
W hen Stockton resident Kevin Byrd refinanced his mortgage a couple of years ago, he figured he'd need the full 30 years to pay off more than $300,000 in debt.
Markets fall early on news of disappointing profits and late on a glum account of the Fed's latest meeting.
Stocks retreated Tuesday after aluminum producer Alcoa and chip maker Advanced Micro Devices reported disappointing financial results and the Federal Reserve released minutes showing central bankers' concerns about the slumping economy.
Frustrations and worries mounted Tuesday at U.S. airports after American Airlines said it was canceling as many as 500 flights for another round of maintenance checks. More flight delays are expected today.
Praise for former Chairman Alan Greenspan has been muted by critics who blame him for current economic troubles.
Alan Greenspan retired in January 2006 as one of history's most lauded Federal Reserve Board chairmen, the subject of accolades that stopped just short of deification.
Reuters - Citigroup Inc , the largest U.S.
bank, is close to selling about $12 billion of leveraged loans
and bonds to a group of private equity firms, people familiar
with the situation said on Tuesday.
American Airlines cancels hundreds of flights after grounding its MD-80 aircraft to inspect the wiring. Source: BBC News | Business | World Edition | 9 Apr 2008 | 6:35 am
TOKYO (Reuters) - Group of Seven finance chiefs will hold discussions with around 10 private sector bankers at a meeting this week to help shape their response to the global credit crisis, a Japanese finance ministry official said on Wednesday.
Japan's parliament backs Masaaki Shirakawa as head of the central bank after rejecting two other candidates. Source: BBC News | Business | World Edition | 9 Apr 2008 | 5:54 am
A senior US official squashed speculation US President George W. Bush might join European leaders considering skipping the opening of the Beijing Games over China's crackdown in Tibet Source: FT.com - US homepage | 9 Apr 2008 | 5:23 am
South Canterbury Finance has bought Nelson-based Fairfield Finance Ltd, a week after purchasing another Nelson-based finance firm.
The Fairfield purchase for an undisclosed sum follows South Canterbury buying part of the lending... Source: New Zealand Herald - Business | 9 Apr 2008 | 2:30 am
State owned enterprise Meridian Energy has named board member Tim Lusk as its new chief executive.
Mr Lusk will replace Keith Turner who left at the end of March.
Meridian chairman Wayne Boyd said Mr Lusk brought a "wealth of... Source: New Zealand Herald - Business | 9 Apr 2008 | 1:50 am
A further 16 wind turbines have been ordered for Te Rere Hau wind farm, near Palmerston North.
Te Rere Hau Wind Farm, in which NZ Windfarms Limited has a 50 per cent shareholding, confirmed the order has been placed with Windflow... Source: New Zealand Herald - Business | 9 Apr 2008 | 1:30 am
SYDNEY (Reuters) - China is planning to buy a more than 9 percent stake in miner BHP Billiton Ltd in a bid to interfere in BHP's proposed acquisition of rival Rio Tinto Ltd , The Australian newspaper reported on Wednesday.
Kiwi Income Property Trust says its portfolio has been revalued up $65 million to $2.1 billion.
Its flagship office asset, the Vero Centre in Auckland's central business district , was up $32m to $335m and was attracting rents... Source: New Zealand Herald - Business | 9 Apr 2008 | 12:55 am
Sun Microsystems (NASDAQ: JAVA) titillates investors every year or so with some series of announcements. It is building up its operations in China. It has a new open source software initiative. It will offer vitualization products on its servers. Whatever the next big thing is, Sun has a piece of it. But, the piece never amounts to much because Sun cannot generate any revenue growth. The sales increases it has had over the last couple of years were due to M&A. The operating income improvements came largely from firing people. Over the last six months, the market has lost confidence...
House prices could fall in Britain by as much as 10 per cent in the coming year, the world's leading economic authority has warned. Source: Telegraph Business | 9 Apr 2008 | 12:01 am
Credit card bank Capital One is to axe 750 jobs from its European headquarters in Nottingham as part of a plan to move more of its operations to India and other low-cost countries. Source: Telegraph Business | 9 Apr 2008 | 12:01 am
Yesterday's Global Financial Stability Report was among the gloomiest reports that has ever been published by the IMF - an institution that is hardly renowned for hyperbole. Source: Telegraph Business | 9 Apr 2008 | 12:01 am
Alistair Darling is standing by his UK growth forecasts for 2008, despite signs that a crippling downturn could be around the corner for the global economy. Source: Telegraph Business | 9 Apr 2008 | 12:01 am
Reserve Bank of New Zealand governor Alan Bollard made the unusual call this morning for banks and businesses not to hibernate in the face of tighter credit markets and talk of an economic slowdown.
He said he would be disappointed... Source: New Zealand Herald - Business | 9 Apr 2008 | 12:00 am
Honeywell won a $23bn contract to supply Brazil's Embraer with engines for its new line of mid-sized corporate jets, displacing incumbent manufacturers Rolls-Royce and Pratt & Whitney Source: FT.com - US homepage | 8 Apr 2008 | 11:52 pm
Crimes against business cost £12.6bn annually, the British Chambers of Commerce claims. Source: BBC News | Business | World Edition | 8 Apr 2008 | 11:31 pm
The sharemarket was down this morning after profit-taking and reaction to the Australian market saw it shed 1 per cent yesterday.
The benchmark NZSX-50 index was down 21.99 points to 3583 at 10.15am today.
Fisher and Paykel... Source: New Zealand Herald - Business | 8 Apr 2008 | 11:15 pm
Ryanair is facing prosecution and a substantial fine for repeatedly misleading
passengers about the availability of its cheapest fares. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
The Bank of England is under intense pressure to cut interest rates again
tomorrow after house prices fell by the biggest margin since the early 1990s
crash and ministers tried to prevent a spate of repossessions. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
The Government fired a warning shot to potential bidders for British Energy
yesterday by saying it will not tolerate the emergence of a single monopoly
player in Britain’s drive to build a new generation of nuclear reactors. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
Losses from the credit crisis by financial institutions worldwide are expected
to balloon to almost $1 trillion ($£507 billion), threatening to trigger
severe economic fallout, the International Monetary Fund said yesterday. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
Citigroup was last night close to securing a deal that will see America’s
biggest bank dispose a quarter of its leveraged debt to three private equity
firms at a 10 per cent discount. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
Two of Britain’s biggest energy companies could face fines totalling as much
as £2.57 billion after Ofgem, the energy regulator, launched an
investigation into alleged abuses of their dominant market position in
Scotland. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
Boeing is expected to announce today that its 787 Dreamliner has been delayed
by 18 months, a setback that will cost the company billions of dollars in
compensation to airlines. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
Severn Trent, Britain’s second-biggest water company, is considering whether
to challenge a record £35.8 million fine by Ofwat. The water regulator
imposed the fine on the company for lying about its performance, which
allowed it to overcharge customers. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
Ben Verwaayen, the man credited with turning around BT, surprised the City
yesterday by announcing he is to step down as chief executive at the end of
next month. The Dutchman, recruited six years ago to pick up the pieces at
the beleaguered telecoms giant, is handing over to Ian Livingston, head of
the retail division. Source: Latest Business News from Times Online | 8 Apr 2008 | 11:00 pm
The Financial Times was on Tuesday night named Newspaper of the Year at the British Press Awards. The judges said the newspaper had been "uncompromising in its core mission" Source: FT.com - US homepage | 8 Apr 2008 | 10:43 pm
Citigroup (NYSE: C) is near a deal to sell $12 billion of problem corporate debt to a group of private equity firms. According to The Wall Street Journal the firms include "Apollo Group, TPG and Blackstone Group ." Citi would like to have the deal done before it reports it Q1 numbers. The haircut on the paper is supposed to to be 10%. Given how close the price is to par, it is somewhat surprising that the want to let it go. Douglas A. McIntyre
New Zealanders must become more savvy investors, or expect to get 'burned', according to Commerce Minister Lianne Dalziel.
The minister believes education in financial literacy is the key.
"Whilst we may have made some progress... Source: New Zealand Herald - Business | 8 Apr 2008 | 10:00 pm
Most New Zealand investment managers remain optimistic the country is not heading for a recession, a survey today reveals.
Russell Investment Group's March quarter Investment Manager Outlook reports 7 out of 10 managers surveyed... Source: New Zealand Herald - Business | 8 Apr 2008 | 10:00 pm
The launch of Google's App Engine Web software platform was initially greeted with something close to rapture. But the warm glow faded quickly when the company was accused of copying a rival's application.
App Engine, a set of free tools that allow software developers to build applications on Google's infrastructure, is supposed to be the next step in the company's campaign to move computing from desktops to the internet.
But a program the company is using to showcase the new platform—a group instant-messaging service called HuddleChat—bears a striking resemblance to Campfire, a program that runs on Amazon's competing software platform.
The resemblance is so striking, in fact, that the founder of the company that makes Campfire is crying foul.
"We're flattered Google thinks Campfire is a great product, we're just disappointed that they stooped so low to basically copy it feature for feature, layout for layout," 37Signals founder Jason Fried said in an email received by ReadWriteWeb. "We thought that would be beneath Google, but maybe its time to reevaluate what they stand for."
ReadWriteWeb's Josh Catone notes that "37Signals is supported by Amazon founder Jeff Bezos, who invested in the company in July 2006, and the Chicago-based company's Web apps all run on Amazon's Web services platform."
It's also worth noting that the two programs are basic group chat clients—simple pieces of software that bear fundamental similarities in the way that, say, instant-messaging services bear fundamental similarities.
Google itself initially downplayed any similarities to Campfire. "Like the other sample apps in the Google App Engine gallery, Huddle Chat was written by several Googlers as a side project to demonstrate the usefulness of Google App Engine," a company spokesman said.
But John Gruber, who blogs at Daring Fireball, says the similarities run suspiciously deep.
"The layout is the same, the tabs at the top of the screen are the same, the right-side sidebar listing participants and file uploads is the same," he says. "It even copies Campfire's trick of formatting a message as 'code' if it contains literal newline characters."
Newline characters are code signifying the end of a line of text.
Google's apparent misfire with HuddleChat marred what was shaping up to be a blockbuster announcement, coming just weeks before Google reports earnings. (App Engine has been garnering very positive early reviews.)
The flap also hints at the worrisome implications of App Engine. While the idea of a free set of tools based on Google technology may sound appealing to software developers, some people worry that it could also permit Google to become the Microsoft of the Internet—the dominant, de facto software developer environment.
Marhsall Kirpatrick at ReadWriteWeb is among the bloggers asking if that's such a good thing.
"Google's dominance of online advertising is so severe, and the umbrella for innovators that such dominance affords is so large, that it can't help but raise concerns about a single corporate allegiance running between so many development teams in leadership positions in the web 2.0 economy," Kirkpatrick wrote today.
In fact, creating a uniform standard for Web-based software developers is precisely Google's strategy: If successful, App Engine could spawn hundreds if not thousands of applications and startups that would be built on Google's infrastructure.
Google, which is sitting on a $15 billion cash hoard, could then snap up the most promising startups, which would already be compatible with Google's systems.
Such concerns moved from fringe to center stage among bloggers as rumors spread that Google had ripped off—or appeared to rip off—another company's program to showcase its new platform. Such behavior, some archly note, is reminiscent of another giant technology company up in Washington.
"Borrowing ideas is fair game, but copying an entire app is wrong," wrote Gruber, the Daring Fireball blogger. "And it's creepy, in a Microsoft-of-the-'90s way, when it's a $150 billion company cloning an app from a 10-person company."
Full year operating profit guidance issued by Fisher & Paykel Healthcare highlights the impact of the strong New Zealand dollar on the company's results.
The company said today that it expected its operating profit for the year... Source: New Zealand Herald - Business | 8 Apr 2008 | 9:30 pm
Citigroup is nearing a deal to sell $12bn in leveraged loans at a discount to a group of leading private equity firms, marking another step in new chief executive Vikram Pandit's efforts to shrink the beleaguered bank's balance sheet Source: FT.com - US homepage | 8 Apr 2008 | 9:01 pm
Reuters - Washington Mutual Inc , battered
by mortgage delinquencies and defaults, said Tuesday it
obtained a $7 billion capital injection from private equity
firm TPG Inc and other investors, but projected a $1.1 billion
quarterly loss and set plans to eliminate 3,000 jobs.
EMC Corp. (NYSE: EM) has won in its attempt to acquire Iomega Corporation (NYSE: IOM). EMC will acquire San Diego-based Iomega for a purchase price of $3.85 per share in a deal valued at some $213 million. This merger will marry EMC's corporate and enterprise data storage and with Iomega's business and personal data storage. The addition of Iomega's products, brand name, distribution channel and industry expertise will also bring EMC into the rapidly-growing consumer and small business markets. Iomega subsequently announced the termination of a share purchase agreement With ExcelStor entities, and Iomega has paid a $7.5 million break-up...
The International Monetary Fund said today the worldwide losses stemming from the US sub-prime mortgage crisis could hit US$945 billion ($1.2 trillion) as the impact spreads in the global economy.
The IMF, in a particularly stark... Source: New Zealand Herald - Business | 8 Apr 2008 | 8:30 pm
Reuters - Members of the Federal Reserve's
policy-setting committee worried at their most recent meeting
that housing and financial market stress could trigger a nasty
slide in the economy, even as inflation pushed higher, minutes
of the meeting released on Tuesday show.
Former Fed Chairman Alan Greenspan has embarked on a public relations campaign as criticism of his interest rate cutting spree of earlier this decade has mounted. He says he has no regrets about any of his policies. Kai Ryssdal has more. Source: Marketplace | 8 Apr 2008 | 7:29 pm
You know that information you try so hard to protect, such as your Social Security and credit card numbers? A report says the going price for that personal data is really cheap. Dan Grech reports. Source: Marketplace | 8 Apr 2008 | 7:29 pm
Americans' grocery bills are heading up at the fastest rate in almost 20 years, which poses a problem for supermarkets with razor-thin profit margins. Stacey Vanek-Smith reports. Source: Marketplace | 8 Apr 2008 | 7:29 pm
American businesspersons living in China usually have some adapting to do when they first get there. One of the most curious things is the thin line between workers' personal and professional lives. Bill Marcus reports. Source: Marketplace | 8 Apr 2008 | 7:29 pm
Rising gas and food prices and the credit crunch may be making it harder for Americans to make ends meet. But economist Chris Ruhm says a tougher economy may also be improving the health of the population as a whole. He explains to Kai Ryssdal. Source: Marketplace | 8 Apr 2008 | 7:29 pm
Morgan Stanley wrote off $9.5 billion worth of subprime mortgages last quarter, so you might expect its executives to get a grilling at the annual shareholders meeting. Nope. Didn't happen. Michelle Leder of Footnoted.org discusses why that is. Source: Marketplace | 8 Apr 2008 | 7:28 pm
As the credit squeeze gets tighter every day, students and parents watching the headlines might be worrying about how they'll pay for college. Now, a nonprofit heavily involved in student loans has filed for bankruptcy. Amy Scott reports. Source: Marketplace | 8 Apr 2008 | 7:28 pm
U.S. Ambassador to Iraq Ryan Crocker told a Senate committee today that the country is beginning to pay in small ways for its own reconstruction. But, as John Dimsdale reports, it has a long, long way to go. Source: Marketplace | 8 Apr 2008 | 7:28 pm
How times have changed for NBC Universal. The one-time home of "Must See TV" is now taking the Weinstein Company to court over rights to Project Runway.
Since when does a niche reality show, running on Bravo, an NBC Universal cable channel, and generating little more than a 3 percent household rating on its best night this season, justify what will no doubt be an embarrassing and expensive lawsuit? Not to mention an ugly and public fight between two media titans, Jeff Zucker and Harvey Weinstein?
But NBC Universal is clearly desperate. Cable networks have become an increasingly important part of its television business. According to the 2007 annual report of NBC parent General Electric, NBC Universal's cable business—including CNBC, MSNBC, USA, SciFi, Bravo, and Oxygen—make up half the company's profits. And USA is currently the biggest cable channel anywhere.
So NBC Universal is fighting for every inch.
"If I'm Bravo and I'm enjoying drinking at the trough of upscale women and gay guys that love cool, urban, creative programming, if someone is stealing my signature show and one that already has a big audience, that's pretty troubling," says Eli Holtzman, the creator of Project Runway for Miramax Television in 2000. "It dilutes their brand."
Brad Adgate, senior vice president at media-planning and buying agency Horizon Media, adds that the strength of Runway's online viewership and robust web offerings, including blogs by cast members, designer photo diaries, and cameos from past contestants, also makes it an attractive show. "It has repositioned Bravo and become a flagship program," says Adgate.
And it is not as if the main franchise is pulling its weight. Since the 2001–2002 broadcast season, the NBC network has suffered a steady decline in ratings, down to a low of 5.8 percent of households in the 2006–2007 season, when the network placed fourth, behind Fox. NBC is wrestling with a fractured viewing audience as the ratings for network television in general are declining.
In its lawsuit, filed Monday in New York Supreme Court, NBC Universal contends that the Weinstein Company, led by brothers Bob and Harvey, had promised the company the right of first refusal before selling the airing rights to another cable channel.
The lawsuit alleges that Harvey Weinstein promised, at a lunch at the Beverly Hills Four Seasons, not to "embarrass" Zucker when it came to renegotiating the rights to the show. Instead, he signed a deal in secret with the Lifetime channel on February 7 but continued to negotiate with NBC for two months.
"I think that [Zucker and Weinstein] had a friendship, but they have different definitions of the word 'friend,'" says someone familiar with the personalities involved, who declined to be identified out of concern about professional ramifications. "I would say that Jeff's definition of 'friend' is a lot closer to the one that you and I would probably have."
This person speculates that failed movie projects at the Weinstein Company have made money tight and that Lifetime's reported $150-million-plus offer for Runway was too rich to ignore.
Asked to comment on the lawsuit, an NBC representative said only that the company has "continuing legal rights related to Project Runway, including a right of first refusal to future cycles of the series, which the Weinstein Company unfortunately has refused to honor."
But when asked whether, if NBC is successful in court, the company would hope to bring the show back to Bravo, where it made its debut in December 2004, the spokesperson wouldn't rule out the possibility.
In a statement, the Weinstein Company said that the lawsuit was without merit.
Holtzman does not expect any personal fallout between the two media moguls. "These guys have been around the block so many times that this is all just business."
The financial sector faces potential losses of almost $1,000bn as a result of the credit crisis, the IMF said, warning of further losses and writedowns on prime mortgages, commercial real estate, leveraged loans and consumer finance Source: FT.com - US homepage | 8 Apr 2008 | 6:10 pm
John Mack, chairman and chief executive of Morgan Stanley, predicted a near-term end to the troubles in the US subprime and leveraged loans markets and said the crisis could be over within six months Source: FT.com - US homepage | 8 Apr 2008 | 5:53 pm
PURCHASE, N.Y.—Morgan Stanley shareholders might not be happy with the stock price, but they appear to be confident that John Mack is the right person to be manning the ship.
At the bank's annual shareholder meeting here this morning, the supporters of Mack's leadership widely outnumbered the dissenters. And even the dissidents were mostly complimentary and cordial.
After Morgan Stanley suffered a huge trading loss and $11 billion in write-downs last year, Mack made the largely symbolic gesture of refusing a bonus for 2007. In front of about 100 shareholders this morning, the Morgan Stanley chief executive called the write-downs "an embarrassing loss" and claimed full responsibility for them.
The gesture seems to have worked. A shareholder proposal to adopt a so-called say on pay, which would give shareholders a vote on executive-compensation packages, failed to garner enough support to pass. Nearly 37 percent of the shareholders voted in favor of the resolution, which was proposed by the American Federation of State, County, and Municipal Employeesunion and rejected by management.
John Keenan, the union's representative at the meeting, was pleased with the outcome. "Anytime nearly four out of 10 shareholders vote for change, it sends a strong message to the board," he said.
A proposal for Morgan Stanley to adopt human rights policies on investments impacting Sudan was dropped after an Amnesty International representative said it had such a "productive dialogue" with the bank's management.
And even CtW Investment Group, a union-backed pension fund that had publicly criticized Mack's leadership and called for shareholders to withhold votes on two board members as well as Mack's chairman position, seemed practically enamored of him this morning.
Bill Patterson, CtW's president, commended the firm for its openness, its outreach, and for engaging in a "superb dialogue" in recent weeks. Still, he explained to shareholders that the board needs an independent chairman to keep better checks and balances on management. "The board needs the capacity to be able to stand up to you," he told Mack.
But few shareholders agree. Mack received a full 94.5 percent of the votes represented at the meeting for his reelection as chairman. In fact, all of the board members received more than 90 percent of the votes cast.
During a question-and-answer session, a handful of shareholders stepped forward to raise issues or question certain decisions made in the past year. Mack underscored the firm's focus on liquidity right now, choosing to forgo share buybacks or taking on risks in investment opportunities such as distressed securities.
With regard to the subprime crisis, Mack said that he believes we are in the "final innings," but he concedes that today's market environment is tougher than he's seen in his 40 years in the business. Morgan Stanley believes it will continue for the near term, so its focus on liquidity will remain a priority.
One shareholder, who identified himself only as a resident of Purchase, called Mack out for firing former co-president Zoe Cruz late last year instead of stepping down himself. She oversaw the trading desk that was responsible for the losses last year.
"Either you both should be here, or you both should be gone," this shareholder said.
Mack explained that the board had made the decision to let some executives go and wanted him to remain.
Perhaps the board has good reason: His ability to quiet even the mere rumblings of a shareholder uprising was certainly impressive.
Plenty of investors seem content to overlook the fact that Morgan Stanley's shares are right around the same level they were at when Mack returned to the helm three years ago, as Portfolio.com's Dan Colarusso noted recently.
Only one vocal shareholder raised the issue of the stock price during this morning's meeting, but even he barely paused before continuing to shower Mack with praise for a job well done.
In turbulent times, it seems most investors would rather just see a calm stoicism than a high share price.
Reuters - If there was any question of how much
an early Easter would hurt sales at already-struggling U.S.
retailers, J.C. Penney Co Inc gave a resounding answer
last month with a quarterly profit warning.
The company hopes its Pike Place Roast will perk up slumping sales in the U.S. market.
Starbucks Corp. will start serving up a new "everyday" brew today, hoping the signature blend will help revive slumping sales in its crucial U.S. market.
Private equity used to be about changing the rules: taking on new targets, using different management tools, inventing new ways to obtain financing.
By playing by the old, conventional rules, private equity is raising even more eyebrows. T.P.G., formerly Texas Pacific Group, is leading a group of investors to pump $7 billion, with virtually no leverage, into the nation's largest savings and loan, Washington Mutual.
With the deal, T.P.G. resembles Vanguard, Legg Mason, and Barclays—mainstream institutional investors who also happen to be big shareholders of WaMu already.
As Andrew Ross Sorkin of the New York Times put it in his DealBook column today: "The buyout kings have been reduced to playing in the same sandbox as the rest of us."
Under the deal announced today, Washington Mutual sold the investor group 176 million shares of its common stock at $8.75 per share, or $1.54 billion. It also issued 55,000 convertible shares that have an exercise price of $8.75 per share for $5.5 billion.
T.P.G.'s founding partner, David Bonderman, who served as a director of WaMu from 1996 to 2002, will return to the board.
Washington Mutual also said that it expects to report a first-quarter loss of $1.2 billion, or $1.40 per share, as it sets aside $3.5 billion for bad loans. It is also slashing its dividend to 1 cent per share, down from 15 cents, a move that will save it $490 million a year. Shares of Washington Mutual tumbled 9 percent, to $11.99.
There have been a number of prominent minority investments by private equity firms in recent years. At first glance, few look promising.
Deutsche Telekom: Blackstone Group bought 4.5 percent of the German telecommunications giant for 14 euros a share. It also got a seat on Deutsche Telekom's supervisory board. Today, the shares traded at 11.28 euros, or $17.17.
Sun Microsystems: Kohlberg Kravis Roberts & Co. invested $700 million in Sun in January 2007 through convertible notes with an conversion price of $7.21 per share. Sun shares are trading at $15.45.
Palm: Elevation Partners invested $325 million in convertible stock in June 2007. The conversion price is $8.50 per share. Palm shares are now at $5.60.
MBIA: Warburg Pincus agreed in December 2007 to buy 16.1 million shares of the bond insurer at $31.00 per share. MBIA is currently trading at $13.35.
To be sure, the use of convertibles in some of the examples above will guarantee a yield, and private equity firms generally have a longer time frame than most other money managers.
Still, why do the same thing that other big investors do?
For one thing, the private equity firms need to put the billions of dollars they have raised over the last year to work, as Sorkin and others have noted.
And they are certainly able to make big, risky bets that other big investors can't (a pension fund), or won't (the risk-averse Warren Buffett), or have come to regret (the sovereign wealth funds).
With the high-yield debt markets still seized up, there are few other investing alternatives available to private equity.
The Financial Times' Lex column contends his deal could be the wave of private equity's future, saying that firms "will increasingly target distressed companies which require capital and have scope for a big profit if the business can be turned around."
Top executives and core shareholders of EADS were aware as early as June 2005 that profits in the group's core Airbus subsidiary faced a "probable decline over the medium to long-term" Source: FT.com - US homepage | 8 Apr 2008 | 2:48 pm
John Thain, chief executive of Merrill Lynch, seems to be spending an awful lot of time in Japan just a week before Merrill is expected to report an ugly first quarter.
That has led to speculation that the Wall Street firm will announce an alliance with Mizuho Financial Group, the world's largest bank.
In comments to reporters today, Thain declined to comment on possible alliances with Mizuho, which announced in January that it would invest $1.2 billion in Merrill. "We are not being specific about it at this moment,'' Thain said, according to Bloomberg News.
Thain also repeated comments that Merrill will not need to raise more capital, but will continue to shrink its balance sheet. The firm has raised nearly $13 billion since the credit crunch hit it last fall.
"We deliberately raised more capital than we lost last year," Thain said, according to Reuters.
Merrill is set to report first-quarter earnings on April 17. Many analysts are expecting the firm to take a loss on an additional write-down of several billion dollars.
The most contentious campaign of the year isn't between Obama and Clinton, it's over the legacy of Alan Greenspan.
The former Federal Reserve chairman is an astute politician. And so, even without a book to promote, he is making another big public push, spinning his view in the wake of the rescue of Bear Stearns and moves by Congress to deal with the housing crisis. In an opinion article in the Financial Times on Monday and in an article based on a series of interviews with Greg Ip of the Wall Street Journal, Greenspan defends his record, contending he is being wrongly blamed for the credit crisis.
Critics, he says, are ignoring the factors that led the Fed to cut interest rates under his leadership and are being selective about the record in second-guessing him.
"I was praised for things I didn't do," Mr. Greenspan tells the Journal. "I am now being blamed for things that I didn't do."
Greenspan tells the Journal that he was "wrong about the improbability of a housing bubble."
"Yet he has long maintained that bubbles are an unavoidable feature of a dynamic economy," the Journal says. "No sensible policy, he maintains, could have prevented the housing bubble."
His critics are not being swayed by the latest from the stump. Barry Ritholtz of the Big Picture blog, who describes him as "the grand architect of a Fed era which will forever be known for easy money and nonregulation," says "Alan Greenspan seems to be hell-bent on destroying what little reputation he has left."
The main argument against Greenspan is that the Fed failed in its regulatory oversight at a time when financial institutions' holdings of opaque, over-the-counter derivatives ballooned.
The Institutional Risk Analysts, discussing the failure of Bear Stearns, notes, "by replacing exchange-traded securities with ersatz O.T.C. instruments, Greenspan and the quant economists who dominate the Fed's Washington staff have created vast systemic risk that need not exist at all and that now threatens our entire financial system."
Reuters - A major Yahoo Inc
shareholder, Legg Mason, is ready to back Yahoo's effort to
stay independent if Microsoft Corp lowers its buyout
offer, the Wall Street Journal said, citing an interview with
portfolio manager Bill Miller.
Reuters - Japan's central bank downgraded its
growth outlook on Wednesday in the face of a global credit
crisis, delivering a bleak outlook just as its youngest
governor in 50 years was confirmed in his job.
Reuters - Citigroup Inc , the largest U.S.
bank, is close to selling about $12 billion of leveraged loans
and bonds to a group of private equity firms, people familiar
with the situation said on Tuesday.
Reuters - Washington Mutual Inc , battered
by mortgage delinquencies and defaults, said Tuesday it
obtained a $7 billion capital injection from private equity
firm TPG Inc and other investors, but projected a $1.1 billion
quarterly loss and set plans to eliminate 3,000 jobs.
Reuters - Members of the Federal Reserve's
policy-setting committee worried at their most recent meeting
that housing and financial market stress could trigger a nasty
slide in the economy, even as inflation pushed higher, minutes
of the meeting released on Tuesday show.
Reuters - If there was any question of how much
an early Easter would hurt sales at already-struggling U.S.
retailers, J.C. Penney Co Inc gave a resounding answer
last month with a quarterly profit warning.