WASHINGTON (Reuters) - Retail sales unexpectedly rose 0.2 percent in March, pushed up by a jump in gasoline sales, a government report released on Monday showed.
AP - Consumers, beset by a credit crunch, rising energy and food costs and a prolonged housing slump, stayed away from the malls in March. Retail sales posted only a small increase after a big drop in February. Source: Yahoo! News: Business | 14 Apr 2008 | 12:46 pm
NEW YORK (Reuters) - Wachovia Corp posted a surprising first-quarter loss on Monday as credit problems from mortgages and other debt soared, prompting the bank to cut its dividend and raise $7 billion in capital.
US retail sales have climbed by 0.2% in March, beating analysts' expectations, official figures show. Source: BBC News | Business | World Edition | 14 Apr 2008 | 12:42 pm
Reuters - U.S. stock index futures pared losses
on Monday after data showed retail sales unexpectedly rose in
March, tempering worries about the health of the U.S. consumer
and a recession.
NEW YORK (Reuters) - U.S. stock index futures pared losses on Monday after data showed retail sales unexpectedly rose in March, tempering worries about the health of the U.S. consumer and a recession.
Stock futures added to Friday's General Electric-inspired losses, with the financial sector back in focus after Wachovia said it needs to raise a further $7 billion from investors, though the latest retail sales figures were slightly ahead of expectations.
U.S. stock futures failed to recoup losses on Monday after last week’s earnings miss from General Electric, with financial-sector worries back in the spotlight on reports Wachovia is going to need a $7 billion infusion from investors to cover losses.
Reuters - Wachovia Corp posted a
surprising first-quarter loss on Monday as credit problems from
mortgages and other debt soared, prompting the bank to cut its
dividend and raise $7 billion in capital.
Failed property group Erinaceous has called in the administrators after failing to clear over £250m of debt. The self-styled 'one stop property shop' is to be broken up with a number of its units, such as its insurance services business, remaining outside any insolvency process. Source: Telegraph Business | 14 Apr 2008 | 12:35 pm
Failed property group Erinaceous has called in the administrators after failing to clear over 250m of debt. The self-styled 'one stop property shop' is to be broken up with a number of its units, such... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 12:35 pm
Wachovia, the fifth largest US bank, slashed its dividend and slumped to a first quarter loss as it confirmed plans to raise $7bn in capital through a public offering Source: FT.com - US homepage | 14 Apr 2008 | 12:32 pm
NEW YORK/LOS ANGELES (Reuters) - Blockbuster Inc said on Monday it has offered up to $1.3 billion for electronics retailer Circuit City Stores Inc , in the movie rental chain's most aggressive step yet to recast itself as an entertainment hub.
Among the companies whose shares are expected to see active trade in Monday's session are AirTran, Blockbuster, Brown-Forman, Circuit City, Clayton Holdings, Eaton Corp., General Electric, Goldman Sachs, Pulaski Financial, Simtek and Wachovia..
PHILADELPHIA (Reuters) - Deutsche Bank AG aims to sell as much as $20 billion of debt related to leveraged buyouts to investors that include private equity firms, The Wall Street Journal reported on Sunday.
PARIS (Reuters) - Higher sales of baby foods helped spur an 18.7 percent rise in first-quarter sales at Groupe Danone SA and the French company said on Monday it was on course to meet its 2008 financial targets.
Eaton Corp. on Monday reported that first-quarter net income rose nearly 6% on a boost in its overseas operations, and the industrial conglomerate lifted its outlook for the year.
Reuters - Philips Electronics reported a
bigger-than-expected 28 percent drop in quarterly core profit
on Monday, as its television business sank deeper into the red,
and warned of slowing economic growth in mature markets.
AMSTERDAM (Reuters) - Philips Electronics reported a bigger-than-expected 28 percent drop in quarterly core profit on Monday, as its television business sank deeper into the red, and warned of slowing economic growth in mature markets.
Manitowoc Co. Inc. agrees to acquire catering-equipment group Enodis for 948 million pounds ($1.87 billion) in cash plus the assumption of $207 million of debt.
Trina Solar Ltd. (NYSE: TSL) is halting the development of a previously announced polysilicon production facility, which originally had a total estimated cost of some $1 Billion. Less than two weeks ago, the company announced it had secured long-term supply pacts over an 8-year period. The solar photovoltaic products maker in China said its related equipment supply contract with a unit of GT Solar International Inc. will lapse as a result of this capacity not coming on-line. This strategic decision came after what the company called a careful assessment of raw material requirements, along with recent and favorable long-term polysilicon...
Shares fall globally at the start of the week amid growing concerns over the state of the US economy. Source: BBC News | Business | World Edition | 14 Apr 2008 | 12:00 pm
Gordon Brown's economic woes have been compounded by figures showing that the costs of raw materials are climbing at a record pace. Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 11:40 am
Gordon Brown's economic woes have been compounded by figures showing that the costs of raw materials are climbing at a record pace. Source: Telegraph Business | 14 Apr 2008 | 11:40 am
Reuters - Blockbuster Inc
said on Monday it has offered up to $1.3 billion for
electronics retailer Circuit City Stores Inc , in the
movie rental chain's most aggressive step yet to recast itself
as an entertainment hub.
Government-owned Northern Rock is yet to pass on rate cuts despite the chancellor urging lenders to "play their part". Source: BBC News | Business | World Edition | 14 Apr 2008 | 11:36 am
US bank Wachovia slumps to a quarterly loss and writes down the value of its mortgage assets by $2bn. Source: BBC News | Business | World Edition | 14 Apr 2008 | 11:32 am
Philips Electronics reports a 75% drop in first-quarter profit, mostly from an unfavorable comparison with a big gain from stake sales in the year-earlier period, but also on difficulties from its television business, lower license income and acquisition-related charges.
Companies that investors have left for dead have been busy trying to find new lives in deals. Take AOL and Yahoo or Delta and Northwest, for example.
The latest and strangest is Blockbuster's unsolicited offer to acquire Circuit City Stores for more than $1 billion in cash.
Blockbuster said today that it had approached Circuit City in February, but that it was now making its offer public because Circuit City has not allowed Blockbuster to conduct due diligence to make a formal offer.
In a February 17 letter to Philip Schoonover, the chief executive of Circuit City, Jim Keyes, the new C.E.O. of Blockbuster, said his company was prepared to offer $6 to $8 per share. That would be a premium of 67 percent to Circuit City's February 15 price and more than double Circuit City's closing price of $3.79 on Friday.
Blockbuster said in a statement that a merger "would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices."
Keyes, a former 7-11 executive hired by Blockbuster last year, said the proposal "creates a game-changing retail concept."
Circuit City has not yet responded to the public disclosure of the offer.
The merger proposal is odd for several reasons. Both companies have been struggling of late.
Blockbuster is engaged in a grinding battle with NetFlix and its future is endangered by the kinds of digital downloads Apple and others are ramping up. While its most recent quarter was much stronger than expected, prompting the company to forecast a profit for the year, Blockbuster did lose $124 million last year. And it is carrying $758 million of debt.
Circuit City has been slashing costs to return profitability, although it, too, faces grueling competition from Best Buy and Wal-Mart Stores. It is also facing a challenge from a major shareholder.
It's not clear how combining two different brick-and-mortar chains that are struggling with intense competition will spark some kind of transformation.
"Synergies between a video store and an electronics store aren't that obvious," Nick Bubb, a retail analyst at Pali International in London, told Bloomberg News.
Douglas McIntyre on the 24/7 Wall St. blog is extremely skeptical:
"There is no evidence that the combination of the companies saves a dime in expenses. How it enhances revenue is the stuff of fantasy. Blockbuster is suggesting that the combined firm take on debt to help finance the transaction. In the present environment where debt is anathema the proposal is especially insane."
These are the kinds of deals that are made in a recession. Depressed stock prices bring out strategic players either sniffing for opportunity—Microsoft's pursuit of Yahoo, for example—or trying to paper over the cracks in their business by becoming bigger. While on the surface a bold, creative maneuver, Blockbuster's approach smacks of desperation.
I won't be getting an economic-stimulus tax rebate check, but I'm not complaining about it. Not only am I fortunate to make too much money to qualify for a rebate, but I'm getting something far more valuable than the maximum $1,200 my wife and I could have gotten. Thanks to a relatively little-noticed portion of the stimulus package, we'll be able to refinance our house more cheaply than we otherwise could, or presumably sell it for more.
Rocketing fuel expenses sent both manufacturers' costs and factory gate prices
to record highs, dampening hopes of another interest rate cut next month as
the Bank of England attempts to control inflation. Source: Latest Business News from Times Online | 14 Apr 2008 | 11:28 am
Youngstown, Ohio, has seen its population shrink by more than half over the past 40 years, leaving behind huge swaths of empty homes, streets and neighborhoods.
This morning, Goldman Sachs has made a key call to its industrials sector. It is adding Lockheed Martin (NYSE: LMT) to its Industrials Favorite Value List. Goldman Sachs notes the nature of defense stocks versus industrials in a recession, expectations for a solid earnings report next week, current prices representing a solid entry point. The firm also believes that Lockheed martin is the cheapest of the large cap defense stocks, and its $122 target implies a 20% upside in the stock at current levels. While removing General Electric Co. (NYSE: GE) from this list is post-event, it's really hard to...
Delta Air Lines and Northwest could seal a deal imminently, to create the world's largest airline, say reports. Source: BBC News | Business | World Edition | 14 Apr 2008 | 11:24 am
LONDON (Reuters) - Manitowoc Co Inc , a U.S. maker of cranes and restaurant equipment, has agreed to acquire British food equipment maker Enodis Plc for around 948 million pounds ($1.9 billion), it said on Monday.
Delta Air Lines and Northwest Airlines are close to announcing a merger agreement, according to reports in the Wall Street Journal and Financial Times Sunday.
Wachovia, the fifth largest US bank by market value, confirmed on Monday it plans to raise $7bn in capital through a public offering as it slashed its dividend and slumped to a first quarter loss.The bank... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 11:15 am
These are not the only analyst calls being seen this Monday in pre-market hours, but these are the top calls that 247WallSt.com is focusing on so far this morning: ABB (NYSE: ABB) cut to Equalweight From Overweight at Lehman. Cardinal Health (NYSE: CAH) removed from Conviction Buy List but maintained Buy at Goldman Sachs. Eaton Vance (NYSE: EV) Raised to Neutral from Underweight at JPMorgan. Fastenal (NASDAQ: FAST) Cut to Neutral from Buy at Piper Jaffray. General Electric (NYSE: GE) downgraded to Perform from Outperform at Oppenheimer; cut to Peer Perform from outperform at Bear Stearns. Marsh & McLennan (NYSE:...
The World Bank backs emergency measures to tackle rising food prices around the world. Source: BBC News | Business | World Edition | 14 Apr 2008 | 11:02 am
Consumer electronics firm Philips Electronics sees quarterly profits fall 28% after being hit by slowing TV sales. Source: BBC News | Business | World Edition | 14 Apr 2008 | 10:45 am
According to Reuters, the net loss for Wachovia (NYSE: WB) was $350 million. The loss available to common stockholders, including preferred stock dividends, was $393 million, or 20 cents per share, compared with a year-earlier profit of $2.3 billion, or $1.20 per share. Wachovia also said it would reduce its quarterly dividend 41 percent to 37.5 cents per share from 64 cents. And, of course, the bank will raise money by floating a preferred. The shares should be bloodied today. Douglas A. McIntyre
PHILADELPHIA (Reuters) - Delta Air Lines and Northwest Airlines aim to finalize a merger agreement within days to create the world's largest airline, a source familiar with the situation said on Sunday.
At recent G-7 finance minister meetings and the IMF gathering, food prices were identified, by many measures, as being a larger issue for the global economy than the credit crisis which is doing so much damage to financial market liquidity. According to The Wall Street Journal "Surging commodity prices have pushed up global food prices 83% in the past three years, according to the World Bank -- putting huge stress on some of the world's poorest nations." And, that does not take into account what the phenomenon is doing to inflation rates in large countries including China and the US....
Signs of softening global demand drove oil prices back below $110 a barrel on Monday after the Organisation of Petroleum Exporting Countries said oil markets were fundamentally well supplied.A stronger... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 10:34 am
The dollar staged a broad-based rally on Monday as traders digested the Group of Seven industrialised nations concerns over the recent weakness of the greenback. After its meeting in Washington over the... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 10:13 am
Deutsche Bank (NYSE: DB) is in the process of selling $20 billion of LBO loans. If the financial firm thought its earnings were OK and that its balance sheet would allow it to do business as usual going forward, it is not likely that it would be in the market for buyers. In all likelihood Deutsche Bank will have to take the kind of haircut that Citigroup (C) took last week when the company said it would sell $12 billion of corporate leveraged paper to private equity firms. Citi will even loan them some of the money for the purchases....
CIT Group's advertising slogan may sum up its problem: "At CIT, we are Capital Redefined." Thanks to its recent foray into subprime mortgages, CIT's capital has been radically redefined. On March 20 it was forced to draw down a $7.3 billion backup credit line. Its stock has plunged from around $60 a share earlier this year to $13 on April 9, and CIT shuttered its student loan business and is trying to sell off non-core businesses to keep afloat.
Michael Ashcroft, the millionaire businessman and deputy chairman of the Conservative Party, has bought a 4pc stake in Tottenham Hotspur, the North London football club. Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 9:55 am
Michael Ashcroft, the millionaire businessman and deputy chairman of the Conservative Party, has bought a 4pc stake in Tottenham Hotspur, the North London football club. Source: Telegraph Business | 14 Apr 2008 | 9:55 am
Wachovia (NYSE: WB) will raise between $6 billion and $7 billion. Will the money come in at $28 where the bank trades now? That is already down by half from the 52-week high of almost $57. What a deal that would be. But, no, the new financing will be at the take-under price of as little as $23. Wachovia has moved its earnings release up to today, a sure sign of news, big news. The Wall Street Journal writes "According to people familiar with the situation, Wachovia's deal is similar in structure to the $7 billion infusion announced by Washington...
Shares in Erinaceous Group were suspended on Monday as the property services company was expected to go into administration. The company has been struggling to refinance its debts, of around 220m, and... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 9:52 am
The president of the World Bank has called for immediate action to deal with
rapidly rising food prices that have caused hunger and deadly violence and
threatened the economic stability of the world's poorest countries. Source: Latest Business News from Times Online | 14 Apr 2008 | 9:46 am
Asia-Pacific equities felt the pain of General Electric's poor results and a 26-year low for US consumer confidence, following Wall Street lower amid heightened concerns over the outlook for Asia's largest... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 9:40 am
The revived merger between Delta (DAL) and Northwest (NWA) is based on the premise that, in a airline industry depression, two carriers mashed together work better than if they remained independent. It is an argument which is half again too clever but has no merit to speak of. According to The Wall Street Journal "The deal could value Northwest at roughly $3 billion, these people said, though terms were still being negotiated. That would be well below Northwest's market value of more than $4.6 billion as of Feb. 1, reflecting the industry's worsening prospects in recent weeks." The airline industry...
FRANKFURT (Reuters) - Stock index futures pointed to a weaker start on Monday on growing concern about weaker corporate results as the U.S. earnings season gains momentum, though financials Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 9:37 am
Philips Electronics, the Dutch conglomerate, on Monday reported a sharp drop in quarterly profit, highlighting losses in its television business. The news follows last week's announcement that Philips... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 9:27 am
The transformed St Pancras rail station in London has helped Eurostar, the
cross-channel train operator, drive a 21 per cent increase in passengers. Source: Latest Business News from Times Online | 14 Apr 2008 | 9:18 am
It is the kind of deal that investment bankers trying to save their jobs and desperate CEOs might dream up. Blockbuster (NYSE:BBI) has proposed to buy Circuit City (NYSE:CC) for $6 to $8 based on due diligence. According to The Wall Street Journal "Blockbuster said the combination of the two companies would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices." The weakness in the argument is that neither company is growing at all. Over the last three years, Blockbuster's revenue has been flat to down. Competition...
Dead men are still walking at music giant EMI. Almost four months after Terra Firma boss Guy Hands announced plans to lay off as many as 2,000 staffers worldwide at the troubled major label, he has yet... Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Apr 2008 | 9:16 am
Mitchells & Butlers (M&B), the owner of the All Bar One and Harvester chains,
admitted today several private equity firms had expressed interest in
company and confirmed it has approached rival Punch Taverns about buying its
£1.1 billion Spirit managed pubs division. Source: Latest Business News from Times Online | 14 Apr 2008 | 9:16 am
As the state prepares to spray the San Francisco Bay Area with pesticides to fight an invasive moth, local officials are worrying not only about the potential impact on human health, but... Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 9:14 am
Budget taxes on tobacco and alcohol help push the price inflation of goods leaving UK firms to a 17-year high. Source: BBC News | Business | World Edition | 14 Apr 2008 | 9:13 am
After a weekend of golf and football, during which it was possible to take your mind off the dire situation in the financial markets, it seems like it is business as usual. Source: Telegraph Business | 14 Apr 2008 | 9:10 am
Wachovia, the fifth-largest US bank by market value, has confirmed that it is
engaged in a new round of emergency fund raising of up to $8 billion ($£4
billion) after the group slashed its dividend on first-quarter losses of
$350 million. It made a $2.3 billion profit in the same quarter a year ago.$ Source: Latest Business News from Times Online | 14 Apr 2008 | 9:03 am
AMSTERDAM (Reuters) - Philips Electronics reported a bigger-than-expected 28 percent drop in quarterly core profit on Monday, as its television business sank deeper into the red, and warned Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 9:02 am
Film rental chain Blockbuster goes public with its bid to buy Circuit City for between $6 to $8 a share. Source: BBC News | Business | World Edition | 14 Apr 2008 | 8:55 am
SEOUL (Reuters) - Shares in POSCO , the world's fourth-largest steel maker, fell more than 6 percent to a 3-week low on Monday, as rising cost pressure and U.S. recession jitters fanned... Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 8:52 am
PHILADELPHIA (Reuters) - Deutsche Bank AG aims to sell as much as $20 billion of debt related to leveraged buyouts to investors that include private equity firms, The Wall Street Journal... Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 8:41 am
Oil prices eased from recent highs in Asian trade on Monday after international finance ministers warned that near-term global economic prospects have weakened. In afternoon... Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 8:37 am
UK kitchen firm Enodis, which supplies deep-fat fryers to McDonald's, is bought by US firm Manitowoc. Source: BBC News | Business | World Edition | 14 Apr 2008 | 8:32 am
Pressure on Mitchells & Butlers is mounting after key shareholders expressed misgivings about the bar operator's latest plans to revitalise the embattled business. Source: Telegraph Business | 14 Apr 2008 | 8:04 am
Philips, Europe’s biggest consumer electronics manufacturer, suffered a 28 per
cent drop in its core profits as its key TV business was hit by deepening
losses. Source: Latest Business News from Times Online | 14 Apr 2008 | 7:47 am
According to Reuters, Blockbuster (NYSE:BBI) said it has offered to buy Circuit City (NYSE:CC) for $6 to $8 in cash. Reuters writes that a merger between Delta (NYSE:DAL) and Northwest (NYSE:NWA) could be announced this week. Reuters reports that TIme Warner's (NYSE:TWX) AOL landed a deal to sell all of Verizon's (NYSE:VZ) online ad inventory. Reuters writes that India's Jet Airways will demand compensation from Boeing (NYSE:BA) for late delivery of the 787. The Wall Street Journal reports that Wachovia (NYSE:WB) will get an outside infusion of several billion dollars. The Wall Street Journal writes that G-7 and IMF meetings...
Taiwan's President-elect Ma Ying-jeou received a huge gift over the weekend _ support from China's leader for two of Ma's proposals that could boost tourism and the island's economic... Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 7:33 am
East Asia's Islamic banking industry needs more support from regulators if it is to grow significantly, Moody's Investors Service said Monday. Apart from Malaysia, the growth Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 7:33 am
Video rental group makes public an all cash offer of at least $6 per share to buy electronics retailer Source: FT.com - US homepage | 14 Apr 2008 | 7:30 am
Enodis, the maker of restaurant equipment for chains including McDonald's and
Starbucks, has agreed be to taken over by Manitowoc, the US commercial
fridge maker, for £948 million cash. Source: Latest Business News from Times Online | 14 Apr 2008 | 7:21 am
NEW YORK (Reuters) - Blockbuster Inc. said on Monday that it has offered to buy electronics retailer Circuit City Stores Inc in an all-cash offer in the range of $6 to $8 per share. Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 7:16 am
A widening rich-poor gap and the coming Olympics are raising safety concerns among the nation's well-to-do.
On the outskirts of this western city, in a field of bright yellow flowers, Wang Xi stood on a wrestling mat and eyed her opponent, a brawny man with short-cropped hair fresh from the army. After a quick bow, she lunged at his legs, flipped him over and, within seconds, pinned him to the ground.
Consider attending angel investor networking events to get a sense of the range of opportunities available.
Dear Karen: A friend of a friend is starting a company. The founder says that if I put in $5,000 to $25,000, he will issue me a one-year promissory note with 5% interest. Is this how companies like Google get started?
'The Granularity of Growth' stresses the pitfalls of firms looking at megatrends for guidance.
There is no such thing as a growth industry. No, this is not the latest doom-laden forecast for 2008. It is the penetrating insight offered by three management consultants -- two from global management consulting firm McKinsey & Co., the other a former McKinsey partner -- in this thought-provoking new book, "The Granularity of Growth: How to Identify the Sources of Growth and Drive Enduring Company Performance."
A rebuke in federal court, a pending Supreme Court decision and broadcasters' resistance put enforcement efforts in limbo.
As federal judges consider pivotal cases about what constitutes offensive TV and radio broadcasts, an expletive might best describe the state of the federal government's enforcement of indecency rules.
The federal agency's budget offers no funds for opening new centers that assist female entrepreneurs.
To serve the fast-growing ranks of female business owners like Kathy Macias, who runs a Riverside auto repair shop, the Small Business Administration has added more than two dozen assistance centers in the last two years.
CHARLOTTE, N.C., April 14 /PRNewswire-FirstCall/ -- Wachovia today announced a series of actions to further enhance its capital base and operational flexibility, and... Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Apr 2008 | 6:00 am
Ryan Gaston may never break ground on the 227-acre Crosstown Commons outdoor mall in Corpus Christi, Texas, that he's nurtured for the past year.
Why? One by one, big brand retailers, which Gaston won't name but had formerly committed to the project, have opted for the layaway plan instead. They want to see if slowing retail sales will recover over the coming months before they commit to expanding.
"Because of the economic slowdown, our anchors decided to hold on their commitments until their sales improve," says Gaston, a development partner with Hawkins Companies of Boise, Idaho. He says he sees construction on the project pushed back at least until 2009. It was supposed to start in July.
With consumers once flush from fat credit lines now cutting back, and retail stores watching sales shrivel, the commercial real estate sector is now feeling the burn.
Office space is also weak: That's bad news for banks.
Retailers concerned that consumers are spending less mixed with lenders tightening credit lines is causing some deals across the country to fall through—or at the very least to be delayed.
Case in point? Wal-Mart recently backed out of plans for several new sites, including a 76-acre retail project in Oakley, California, as well as a shopping center development in Clermont, Florida.
The developer of that project, called Plaza Collina, has pledged to move ahead, but the loss of an anchor tenant the size of Wal-Mart will make it much harder to get smaller retailers on board.
Even when big brands do sign up as tenants, there can still be some hesitancy—especially in this weakened economic environment. "It's becoming increasingly difficult to lease the last 10 to 20 percent once anchors are in place," says Nicholas Vedder, a senior associate analyst with Green Street Advisors in Newport Beach, California.
Often these days, even the first 10 to 20 percent can be difficult, as Gaston well knows. He found nearly all of the prospective tenants for the Crosstown Commons waffling, each wanting the other to take the plunge and sign a lease first.
"The power stores said, 'We're not going to do it if you didn't get the lifestyle names to commit,' and the lifestyle brands said they needed to hold," says Gaston, who adds that other projects he's developing across the country are hamstrung by the economy as well.
"This is definitely a national issue," Gaston says.
Retail numbers seem to hold that up. The national vacancy rate for neighborhood and community shopping centers rose to 7.7 percent in April—the highest amount of unleased space since 1996, according to Reis, a real estate research firm.
At the same time, rents fell in 31 of the 76 markets the group monitors, according to Reis' chief economist, Sam Chandon. He adds that rental income is likely to drop even further this year as new retail space that was started during the boom becomes available, glutting the market.
"Consumers are under pressure, and there's more job losses to come, which will significantly crimp retail activity," Chandon says. "And there's nothing like job losses to put the fear into people and make then start saving."
Large national retailers are bracing for lower sales by closing stores. Ann Taylor, Talbots, and Macy's are among those planning to shutter locations recently. Macy's, the venerable New York-based department store, pulled up recently from the Valley View Center in Dallas—and said it would close eight other stores this year.
"When an anchor like [Macy's] closes, it affects the ability to lease any space," says Chandon. "Shopping malls depend on anchors to draw in other tenants."
Creditors haven't missed these signs either. Many developers have suddenly had banks demand more equity before agreeing to loans, or have seen loan agreements come back with lending rates so high that they're not willing to sign.
"This started to hit about August 2007," says Scott Lynn, a Dallas-based principal for Metropolitan Capital Advisors, which secures financing for real estate developers. "We have definitely noticed a slowdown in financing from the Wall Street conduits and securitizing lenders. It's been a very significant pull back."
Even small neighborhood strip malls are not immune from the economic slowdown, though their focus on supermarkets and other stores that sell staples used to make them resistant to downturns. Cash-strapped customers are passing them by for big-box retailers.
"Consumers are much more value conscious—even for groceries," Chandon says. "So these stores and neighborhood malls are not completely immune this time around."
Yet not everyone is reading these signs as time to close up shop. For existing mall owners, rents will eventually rise as less retail space gets built, says Robert McMillan, an equity analyst with Standard and Poor's.
"If you curtail supply," he says, "rental rate growth will gradually increase for existing players in the market."
That's little comfort for developers. With the economy in a funk and consumers just spending less, developers say they're not expecting the high life again for quite a while.
"This is not a cycle I've seen before," says Gaston. "We just got out of the biggest boom in development in years. So even when we do come back, I don't expect it's going to be at levels we've previously seen."
Pyongyang will no longer have to provide a complete declaration of its nuclear activities under a tentative deal reached with Washington towards easing tensions on the Korean peninsula, according to US officials Source: FT.com - US homepage | 14 Apr 2008 | 3:13 am
Henry Kaufman, the distinguished Wall Street economist, has added his voice to the debate about the Federal Reserve's role in the credit crisis, saying the central bank failed to give enough importance to its role as a regulator Source: FT.com - US homepage | 14 Apr 2008 | 2:39 am
A measure of activity in the services sector shows it to be only just continuing to expand.
The monthly Bank of New Zealand - Business NZ Performance of Services Index was down to 50.8 in March, 4.8 points lower than in February... Source: New Zealand Herald - Business | 14 Apr 2008 | 2:30 am
The Australian share market has opened the week two per cent down today, led by financial companies, after US stocks fell on Friday on concerns the world's biggest economy is in recession.
The benchmark S&P/ASX200 index was down... Source: New Zealand Herald - Business | 14 Apr 2008 | 1:18 am
Delta Air Lines is close to an agreement to merge with rival Northwest Airlines in a tie-up that will create the world's largest carrier and help insulate the combined company from a bitter industrywide downturn Source: FT.com - US homepage | 14 Apr 2008 | 1:05 am
Without intending harm to the avian population, it is sometimes good to kill two birds with one stone. Source: Telegraph Business | 14 Apr 2008 | 12:01 am
London is to get a new six-star hotel after Israeli group Alrov Properties signed a £90m deal yesterday to buy the Regent Street building that houses the historic Cafe Royal. Source: Telegraph Business | 14 Apr 2008 | 12:01 am
Bear Stearns' chief executive Alan Schwartz is likely to take on a senior role within JP Morgan Chase after the acquisition of the stricken investment bank is complete. Source: Telegraph Business | 14 Apr 2008 | 12:01 am
Shoppers tightened their purse strings again in February, as a tougher economic outlook caused people to exercise caution in their retail spending.
The hardest-hit industry was motor vehicle sales.
Retail sales slumped by a... Source: New Zealand Herald - Business | 13 Apr 2008 | 11:30 pm
In a challenge to the London Stock Exchange's success in drawing big initial public offerings, rival NYSE Euronext has launched a "fast path" campaign to persuade Chinese, Indian and Russian companies planning initial public offerings in the US to list partially in Europe as well Source: FT.com - US homepage | 13 Apr 2008 | 11:15 pm
Last week's gloomy mood continued when the New Zealand sharemarket opened today.
By 10.10am the benchmark NZSX-50 index was down 12.49 points to 3476.35, following Friday's drop of 51 points, which came after the Government vetoed... Source: New Zealand Herald - Business | 13 Apr 2008 | 11:15 pm
American-Japanese consortium has emerged as a surprise rival to British Energy
in the race to build a new generation of nuclear power stations in the UK. Source: Latest Business News from Times Online | 13 Apr 2008 | 11:00 pm
Goldman Sachs has been forced to give investors the largest discount yet
offered by an investment bank in the credit crunch in an attempt to offload
loans linked to a highly leveraged buyout, The Times has learnt. Source: Latest Business News from Times Online | 13 Apr 2008 | 11:00 pm
The embattled dollar may claw back some of its recent sharp losses after the
Group of Seven leading economies fired a surprise weekend warning shot at
foreign exchanges over their assault on the greenback. Source: Latest Business News from Times Online | 13 Apr 2008 | 11:00 pm
The "flight to quality" by spooked finance company debenture investors after several high-profile collapses has driven some companies to the wall but had a surprisingly small effect onoverall funding for the sector, Reserve Bank data... Source: New Zealand Herald - Business | 13 Apr 2008 | 10:45 pm
The US media have abandoned all pretence at neutrality in the Democratic presidential contest and are heavily biased towards Barack Obama and against Hillary Clinton, according to Ed Rendell, the governor of Pennsylvania Source: FT.com - US homepage | 13 Apr 2008 | 10:41 pm
World leaders called for urgent action to tackle soaring global food prices, while promising to quickly implement measures to strengthen the international financial system and prevent a repeat of the credit crisis Source: FT.com - US homepage | 13 Apr 2008 | 10:16 pm
Consumer confidence fell to a record low in early April, a survey by Roy Morgan found.
The index fell below 100 for the first time and has fallen 26.6 points in less than 3 months to 99.7, which is the fastest and biggest decline... Source: New Zealand Herald - Business | 13 Apr 2008 | 10:00 pm
Financial services group Tower Australia Group will change how it reports profit from its life insurance operations, leading to an increase in the company's underlying profit and net profit after tax (NPAT).
With effect from October... Source: New Zealand Herald - Business | 13 Apr 2008 | 9:45 pm
New Zealanders overwhelmingly want a tax cut - but not if it puts up the mortgage.
An overwhelming 85 per cent of New Zealanders believe the Government should lower personal income taxes this year.
However, 71 per cent do not... Source: New Zealand Herald - Business | 13 Apr 2008 | 9:40 pm
Geneva Finance has struck a deal with its largest creditor, Bank of Scotland, that gives it time to recapitalise using some new cash from existing shareholders, and by converting some of what it owes to retail investors into new shares.
However... Source: New Zealand Herald - Business | 13 Apr 2008 | 9:30 pm
Sovereign wealth funds could provide capital for an initiative to channel investment to the continent's emerging markets, under a plan being considered by the World Bank's private-sector lending arm Source: FT.com - US homepage | 13 Apr 2008 | 9:24 pm
With a freshly minted Chinese free trade agreement stowed in the briefcase New Zealand is gearing up for the biggest global expo event ever staged.
The Shanghai World Expo will be held between May and October in 2010 and is expected... Source: New Zealand Herald - Business | 13 Apr 2008 | 7:20 pm
Reuters - Siemens AG's (SIEGn.DE) compliance
chief expects an investigation by U.S. authorities into
corruption at the company will some take time, though he is
confident about the outcome, Tagesspiegel newspaper reported. Source: Yahoo! News: Business | 13 Apr 2008 | 3:12 pm
Reuters - U.S. stock index futures pared losses
on Monday after data showed retail sales unexpectedly rose in
March, tempering worries about the health of the U.S. consumer
and a recession.
Reuters - Wachovia Corp posted a
surprising first-quarter loss on Monday as credit problems from
mortgages and other debt soared, prompting the bank to cut its
dividend and raise $7 billion in capital.
Reuters - Retail sales unexpectedly rose 0.2
percent in March, pushed up by a jump in gasoline sales, a
government report released on Monday showed.
Reuters - Philips Electronics reported a
bigger-than-expected 28 percent drop in quarterly core profit
on Monday, as its television business sank deeper into the red,
and warned of slowing economic growth in mature markets.
Reuters - Blockbuster Inc
said on Monday it has offered up to $1.3 billion for
electronics retailer Circuit City Stores Inc , in the
movie rental chain's most aggressive step yet to recast itself
as an entertainment hub.
