LONDON (MarketWatch) -- Nokia Corp. on Thursday is expected to report a solid increase in first-quarter profit, helped by continued strong sales in emerging markets, but investors will be scanning the results for any sign that the worsening economic environment is taking a toll on the world's largest maker of mobile phones.
Aside from the tireless speculators and falling dollar, oil prices do seem to be rising because due to fear of falling demand. Mexico says it may ship less crude. Now Russia says its oil production may have peaked. According to the FT "Even politicians are having to admit the country's once double-digit growth has halted and at least one oil executive believes it will not, at least in his lifetime, be able to produce more than it has in the past two years." By most measures, Russia is the second largest oil producer in the world, so the news will...
Among the companies whose shares are expected to see active trade in Tuesday's session are AstraZeneca, Bear Stearns, Crocs, Delta Air, Feldman Mall Properties, Northrop Grumman, Northwest Airlines, and Wal-Mart.
Carphone Warehouse saw its shares slide as much as 11pc this morning, after upbeat mobile phone sales failed to offset a weaker than expected outlook for the year ahead. Source: Telegraph Business | 15 Apr 2008 | 10:00 am
Who would have imagined that the Delta (NYSE: DAL) merger with Northwest (NYSE: NWA), which was announced yesterday, could be scuttled by a merger of Continental (NYSE: CAL) and United (NASDAQ: UAUA)? Most Wall St. observers believed that the unions were the largest barrier to the Delta deal. The pilots have not given the marriage their imprimatur. The captains may be able to hurt the merger by threatening a strike which could shut down the new carrier. Regulatory questions could be the other roadblock, but, as Reuters, points out "While the U.S. Justice Department is expected to work carefully, the...
Shares in AstraZeneca jump nearly 11% after the drugmaker announces it has settled a patent infringement case with Ranbaxy Laboratories over its Nexium ulcer drug.
British inflation stood at an annual rate of 2.5 percent in March, unchanged from February, as declines in the cost of household equipment offset hikes to air travel and energy, official... Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 9:45 am
Brazilian state-run oil company Petrobras cautions that further exploration is needed to assess the size of its Carioca field after comments from a state official sent the company’s shares sharply higher.
France's annual inflation rate jumped to a near-17-year high of 3.2 percent in March, powered by food and energy prices, the statistics institute INSEE reported Tuesday. ... Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 9:43 am
Italy's annual inflation rate surged to 3.3 percent in March, its highest reading since September 1996, the statistics institute Istat reported Tuesday, pinning the blame on food and... Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 9:36 am
A look at the Washington Mutual (NYSE: WM) and Wachovia (NYSE: WB) deals to raise more capital indicates that other banks and brokerages are looking at below-market deals if their Q1 numbers are light. And, that is very, very likely. Reuters quotes one expert as saying "It's getting to the point where investors are saying, 'how deep is this hole and, if you keep throwing money into it, how much of a return will you see?"' Early indicators from companies like Wachovia and General Electric (NYSE: GE) show that the last half of March may have been tougher on banks...
NEW YORK (Reuters) - Home foreclosure filings surged 57 percent in the 12 month-period ended in March and bank repossessions soared 129 percent from a year ago, as homeowners struggled to make mortgage payments, real estate data firm RealtyTrac said on Tuesday.
Debenhams, the department store group, revealed a 12.4 per cent drop in
underlying pre-tax profit for the six months to March 1 and warned that
conditions would remain challenging as consumers cut their spending in the
wake of rising living costs and falling house prices. Source: Latest Business News from Times Online | 15 Apr 2008 | 9:24 am
It is one thing for Citigroup (NYSE: C) to sell $12 billion in leveraged corporate loans to private equity firms and even lend part of the money for the transactions. It is another for the bank to allow the buyers to pick which loans they want. According to the FT Citi is "allowing private equity groups bidding for up to $12bn of its leveraged loans to cherry-pick from a wide range of assets with different prices and credit ratings." Some people briefed on the deals say that packages could include loans for the buy-outs of Chrysler and Alltel. Deutsche Bank...
Asian markets edge higher, with a rebound in crude oil and gold prices helping lift Nippon Oil Corp. in Tokyo and Cnooc in Hong Kong. Shares in Sydney bounced from a five-day losing streak on bargain buying in financials.
The doom mongers were out in force yesterday, with Goldman Sachs and Wells Fargo to the fore using unusually strong language to describe investor expectations for the remainder of 2008. Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 9:20 am
The doom mongers were out in force yesterday, with Goldman Sachs and Wells Fargo to the fore using unusually strong language to describe investor expectations for the remainder of 2008. Source: Telegraph Business | 15 Apr 2008 | 9:20 am
Carphone Warehouse shares fall more than 9% after the number of new broadband connections disappoints. Source: BBC News | Business | World Edition | 15 Apr 2008 | 9:15 am
Tesco, Britain's biggest supermarket chain, has confounded its critics with a strong performance from its US business, Fresh and Easy, where sales are ahead of target. Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 9:15 am
Tesco, Britain's biggest supermarket chain, has confounded its critics with a strong performance from its US business, Fresh and Easy, where sales are ahead of target. Source: Telegraph Business | 15 Apr 2008 | 9:15 am
Italian luxury brand Gucci wins a key case against Chinese shoe firm Senda for breaching copyright rules. Source: BBC News | Business | World Edition | 15 Apr 2008 | 9:12 am
The onslaught of homes facing foreclosures has yet to ebb, a research report showed Tuesday, with bank repossessions skyrocketing last month as more troubled homeowners mailed in their... Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 9:12 am
Inflation remained steady at 2.5 per cent during March, below an expected rise
of 2.6 per cent, but still above the Bank of England's 2 per cent target
making a further interest rate cut less likely next month. Source: Latest Business News from Times Online | 15 Apr 2008 | 9:08 am
Foreclosure filings jumped 57% in March compared with the same month last year and rose 5% versus February, as the nation's housing market continues to deteriorate.
Tesco, Britain's biggest supermarket chain, has confounded its critics with a strong performance from its US business, Fresh and Easy, where sales are ahead of target. Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 9:02 am
Tesco, Britain's biggest supermarket chain, has confounded its critics with a strong performance from its US business, Fresh and Easy, where sales are ahead of target. Source: Telegraph Business | 15 Apr 2008 | 9:02 am
NEW YORK (Reuters) - Las Vegas casino operator MGM Mirage has said it is cutting 440 jobs, the Wall Street Journal reported on Tuesday, signaling the effect of a slowing economy on the casino industry.
UK consumer inflation was at 2.5% in March, the same level as the previous month, but still at a nine-month high. Source: BBC News | Business | World Edition | 15 Apr 2008 | 8:59 am
Britain's biggest retailer Tesco on Tuesday said its net profit jumped by more than 12 percent in 2007-08 and added it planned to create 30,000 jobs during its current financial year. Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 8:58 am
AFP - Britain's biggest retailer Tesco on Tuesday said its net profit jumped by more than 12 percent in 2007-08 and added it planned to create 30,000 jobs during its current financial year.
CDOs and other derivative instruments are often huge collections of securities broken into tranches, some of which are much more risky than others. Institutional investors are now trying to pry the more valuable pieces of these layers from the toxic ones, which is leading to vicious fighting among the parties and, in some cases, lawsuits. According to the FT "Some investors in the differently rated and ranked slices of CDOs - known as tranches - have taken advantage of the -little-noticed terms in the -structuring of such instruments to seize control of the assets and cut off payments to other...
NEW YORK (Reuters) - Las Vegas casino operator MGM Mirage has said it is cutting 440 jobs, the Wall Street Journal reported on Tuesday, signaling the effect of a slowing economy on... Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 8:43 am
There's a reason Peter Gabriel is a household name. One of the founders of the super-group Genesis, the British rock star went on to have great success as a solo artist known for his outlandish costumes, his cutting edge music videos, and of course, his '80s hits like "Sledgehammer" and "Shock The Monkey," which were both artistic and commercial milestones.
Britain's biggest retailer Tesco on Tuesday said its net profit jumped by more than 12 percent in 2007-08 and added it planned to create 30,000 jobs during its current financial year. Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 8:42 am
Senior bankers are meeting in Downing Street to discuss options for alleviating the credit crisis after a report last night showed house prices are experiencing their most widespread decline since records began. Source: Telegraph Business | 15 Apr 2008 | 8:42 am
Senior bankers are meeting in Downing Street to discuss options for alleviating the credit crisis after a report last night showed house prices are experiencing their most widespread decline since records... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:42 am
The U.S. dollar is slightly lower against most major counterparts, and remains near its all-time low against the euro amid ongoing concerns about the depth of the U.S. economic downturn.
Chinese activists are urging shoppers to stay away from French retailer Carrefour, after pro-Tibet protests in France. Source: BBC News | Business | World Edition | 15 Apr 2008 | 8:36 am
LONDON (Reuters) - Tesco Plc , the world's third-biggest retailer, met forecasts with an 11 percent rise in annual profit on Tuesday and said it had made a strong start to its new financial Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 8:35 am
LONDON (Reuters) - Tesco Plc , the world's third-biggest retailer, met forecasts with an 11 percent rise in annual profit on Tuesday and said it had made a strong start to its new financial year, sending its shares higher.
Bear earns Bear Stearns said its first-quarter profit fell to $110 million, or 86 cents per share, down from $548 million, or $3.82 per share, a year earlier, as the fifth-biggest US in vestment bank prepares... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:33 am
HUDSON VIEWSaatchi renews. EVEN the biggest lease renewals aren't as sexy as relocations - but a deal just completed at 375 Hudson St. is one of those fabulous jumbos that bolsters confidence in the nervous... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:33 am
Magazines that cover news, business and luxury goods were sent reeling in the first quarter of the year, while food magazines offered a few rays of light for the publishing industry, according to just... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:33 am
Delta Air Lines Inc., one year removed from bankruptcy, agreed to merge with Northwest Airlines Corp. in a $3.1 billion stock deal that would create the world's largest carrier and may unleash more industry... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:33 am
How many rainmaker superstars can fit on the head of a Wall Street bank? Probably just one, possibly two uncomfortably. Among the spoils JPMorgan Chase chief Jamie Dimon is eyeing from his distressed... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:33 am
FASTEN your seat belts and keep any sharp objects away from your body for the next few days. This is the first full-fledged week of corporate earnings reports. Profits (where there are any) will be dismal,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Apr 2008 | 8:33 am
Shares in the Anglo-Swedish drugmaker rise 8 per cent as it announces a patent settlement over Nexium Source: FT.com - US homepage | 15 Apr 2008 | 8:33 am
Anxious tech watchers will tune in with great interest this week to get an early glimpse on the sector as Intel and later Advanced Micro Devices deliver first-quarter results.
How treacherous are the financial markets these days? So treacherous that you can get blind-sided even if you're one the world's great investors, even if years ago you anticipated the credit crisis now roiling Wall Street - even if you're George Soros.
Delta Air Lines announced a long-speculated deal to acquire Northwest Airlines for about $3.1 billion Monday, a combination that will create the world's largest airline and could lead to a series of other deals to reshape the U.S. airline industry.
U.S. stock futures hugged the flat line on Tuesday ahead of a wave of economic data and earnings reports from heavyweights including Johnson & Johnson.
According to TechCurnch Time Warner's (NYSE: TWX) AOL has bought blog aggregation company Sphere for $25 million. The report says that Sphere "adapted to the changing market and focused on delivering blog results relevant to content delivered by big news and content sites." Douglas A. McIntyre
Carphone Warehouse saw its shares fall seven per cent in early trading after
the TalkTalk operator reported fewer than expected broadband connections and
revealed a substantial spending programme. Source: Latest Business News from Times Online | 15 Apr 2008 | 8:14 am
Tesco, Britain's biggest supermarket chain, has confounded its critics with a strong performance from its US business, Fresh and Easy, where sales are ahead of target. Source: Telegraph Business | 15 Apr 2008 | 8:00 am
Russian billionaire Alexei Mordashov might raise his stake in TUI, the leading European tourism operator, to 20 percent to gain influence and ensure it expands through acquisitions, a press Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Apr 2008 | 7:55 am
Supermarket giant Tesco reports an 11.8% rise in annual profits for 2007 to £2.846bn. Source: BBC News | Business | World Edition | 15 Apr 2008 | 7:52 am
ZURICH (Reuters) - Roche Holding AG will aim to reassure that big-selling drugs can keep driving profit when it kicks off the European earnings season, as big pharma's blockbusters face growing threats.
Silvio Berlusconi, billionaire entrepreneur, has won his third Italian election with a bigger than expected swing to the centre right. Source: FT.com - US homepage | 15 Apr 2008 | 7:45 am
Tesco, Britain's largest retailer, reported a 12 per cent jump in underlying
pre-tax profit for the 12 months to February 23, and announced plans for
30,000 new jobs across the group. Source: Latest Business News from Times Online | 15 Apr 2008 | 7:37 am
According to Reuters, Northwest (NWA) and Delta (DAL) will merge to create the world's largest airline. Reuters writes that the profit at Bear Stearns (BSC) fell 79%. Reuters reports that Continental (CAL) and United (UAUA) have laid most of the groundwork for a merger. Reuters writes that banks are more likely to sell shares at a discount as Q1 losses mount. Reuters reports that Treasury want more disclosure from hedge funds on assets. Reuters writes that Singapore sovereign fund Temasek may raise more capital after losing money on US investments. The Wall Street Journal writes that oil production in Russia...
Reuters - Economic data continues to suggest that
fears of a new "Great Depression" in the United States are
overblown. But in places like Miami and Fort Lauderdale, where
the housing bust has bitten hard and prices are rising fast,
the specter of economic stagnation twinned with inflation looms
all too real.
MIAMI (Reuters) - Economic data continues to suggest that fears of a new "Great Depression" in the United States are overblown. But in places like Miami and Fort Lauderdale, where the housing bust has bitten hard and prices are rising fast, the specter of economic stagnation twinned with inflation looms all too real.
US firms Delta Air Lines and Northwest Airlines are set to join forces to create the world's biggest carrier. Source: BBC News | Business | World Edition | 15 Apr 2008 | 7:24 am
More US airline mergers are being predicted after Delta Air Lines agreed a $3
billion takeover of Northwest Airlines, a move which will create the
country$’s largest air operator. Source: Latest Business News from Times Online | 15 Apr 2008 | 7:19 am
Markets in Asia rose modestly. The Nikkei was up .6% to 12,991. Casio was up 2% to 1352. Hitachi was up 1.8% to 640. The Hang Seng rose .5% to 23,919. China Life (LFC) rose rose 1.6% to 29.05. China Mobile (CHL) rose 1.2% to 127.5. The Shanghai Composite moved up 1.6% to 3,348. Data from Reuters Douglas A. McIntyre
A Chinese sovereign wealth fund has built a stake of about £1 billion in BP,
accumulating just under 1 per cent of the oil group. Source: Latest Business News from Times Online | 15 Apr 2008 | 7:02 am
The price of oil hits a new record of $112.48 a barrel after bad weather hits Mexican oil exports. Source: BBC News | Business | World Edition | 15 Apr 2008 | 7:01 am
The age-old tactic more frequently found in foreign bazaars and rug stores is returning to the malls and Main Street.
With jobs getting scarcer, stocks on a roller coaster and economists talking recession, not many people feel like paying full price for, well, anything.
Delta Air Lines., one year removed from bankruptcy, agreed to buy Northwest Airlines Corp. in a $3.63 billion stock deal that would create the world's largest carrier and may unleash more industry consolidation. Source: Telegraph Business | 15 Apr 2008 | 7:00 am
The video-rental giant says the acquisition of the struggling consumer electronics chain would create an $18-billion enterprise. Few analysts are impressed.
Promising a "game-changing retail concept," Blockbuster Inc. told Circuit City Stores Inc. shareholders Monday that it would pay just under a 50% premium for their shares in a $1.35-billion bid for the consumer electronics chain.
An Assembly committee strips a key provision that would cap interest rates on loans at 36%.
The California Assembly's Banking and Finance Committee on Monday significantly weakened a bill that would have slashed interest rates charged on payday loans.
He says oil companies should have warned owners that the additive could cause damage. The oil companies say ethanol's effect on fiberglass has been known for a long time.
Something was wrong with Sally Ann. ¶ For months, she sputtered and choked, and Barry Treahy's remedies weren't working. He kept changing her fuel filters. Then he rebuilt her carburetor. Finally, he cut into her gas tank, cleaned out the mysterious caramel-colored gunk and patched her up -- twice.¶ Disaster struck on a summer day in San Diego, when Treahy's beloved 20-foot fishing boat was parked street side with the outer hull plug open to drain any residual water. The boat's 55-gallon gas tank failed and gasoline streamed into the bilge and down the street. ¶ "I wasn't smart enough to figure it out at first," Treahy said of Sally Ann's chronic troubles. Finally, he found the answer in a boating magazine. Ethanol-laced gasoline was dissolving his boat's fiberglass fuel tank, sending bits of resin to clog filters and ultimately eating a hole all the way through the tank. ¶ Years of adding ethanol to gasoline to reduce air pollution and foreign oil dependence has had a nasty side effect: The stuff appears to damage boat fuel tanks made of fiberglass. And California is a floating testing ground for the ethanol effect.
Retail sales strength takes some of the sting out of Wachovia's earnings report as indexes post moderate losses.
Stocks finished a quiet session moderately lower Monday as investors grappled with concerns about the health of corporate profits after Wachovia posted disappointing quarterly results.
The deal, which would form the world's largest airline, comes as jet fuel prices soar and the U.S. economy totters.
Delta Air Lines Inc. and Northwest Airlines Corp. agreed to a merger Monday that would create the world's largest airline and could trigger a wave of industry consolidation and fare increases.
Bear Stearns, which disclosed late last night that profits plunged almost 80
per cent in the three months to February, is under investigation by two of
America's top regulators. Source: Latest Business News from Times Online | 15 Apr 2008 | 6:57 am
Leonid Fedun, vice-president of Lukoil, says Russian oil production has peaked and might never return to current levels Source: FT.com - US homepage | 15 Apr 2008 | 6:40 am
NEW YORK (Reuters) - Delta Air Lines Inc will buy Northwest Airlines Corp for more than $3 billion under a proposal unveiled Monday to create the world's biggest airline, as carriers seek to counter skyrocketing fuel prices and a weak economy.
Reuters - Delta Air Lines Inc will buy
Northwest Airlines Corp for more than $3 billion under
a proposal unveiled Monday to create the world's biggest
airline, as carriers seek to counter skyrocketing fuel prices
and a weak economy.
WASHINGTON (Reuters) - The U.S. Treasury wants hedge fund managers to improve disclosure of hard-to-value assets and adopt audited public company-style performance reports for investors, a summary of recommendations, obtained by Reuters on Monday, shows.
The big banks have lost a Supreme Court case to try and limit discovery of documents in a tax case where $1.7 billion is disputed.
The Supreme Court backed up the Appeal Court in dismissing an appeal from Westpac, BNZ and ANZ National... Source: New Zealand Herald - Business | 15 Apr 2008 | 4:35 am
Delta Air Lines and Northwest Airlines said today that they have agreed to merge in a deal that would create the world's largest airline.
Delta will acquire Northwest in an all-stock deal. Northwest shareholders will receive 1.25... Source: New Zealand Herald - Business | 15 Apr 2008 | 2:30 am
Delta Air Lines agreed to buy Northwest Airlines for about $3 billion, effectively challenging reluctant pilots at both carriers to resolve their dispute over reconciling seniority at a combined company.
Under terms announced Monday evening Delta agreed to swap 1.25 of its shares for each Northwest share. Based on Delta's closing price of $10.48 a share on Monday, the offer values each Northwest share at $13.10, a 16.8 percent premium over their close Monday.
Based on Northwest's recent disclosure that it has 236.43 million shares outstanding, the Delta offer values Northwest at $3.097 billion.
Several news reports on Monday said a deal was imminent, driven by the rapid rise in oil prices over the last year.
Delta and Northwest acknowledged the effect of higher oil prices when they announced their intention to merge.
"Record fuel prices have fundamentally changed the economics of the airline industry," they said in a statement. "Fuel is the highest single expense for Delta and Northwest, significantly eroding the financial benefits of restructuring and placing the airlines' new found strength and stability at long-term risk.
"At the beginning of 2007, oil prices were approximately $55 a barrel," they added. "Now, oil prices have nearly doubled. This dramatic run-up in the price of oil makes the transaction even more compelling."
A merger would let the combined company cope with high fuel costs by generating what it said would be "more than $1 billion in annual revenue and cost synergies" from reduced overhead, and improved operational efficiency.
Sensitive to the specter of job losses and service cuts, the companies went out of their way to add: "The merged airline will maintain all hubs at Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York-JFK, Salt Lake City, Amsterdam, and Tokyo-Narita—each of which will benefit from improved global connectivity."
Still, a deal would require the airlines to integrate, if not reduce, their workforces—particularly their pilots. Representatives for Delta's 6,000 pilots met last weekend in Atlanta, where Delta is based, while union leaders of Northwest's 5,000 pilots have called a meeting in Minneapolis, home of Northwest.
The main sticking point for both pilot groups appears to be seniority lists. The lists are important to pilots because they determine scheduling and routing priorities in addition to ranking for pay.
The pilot groups can't formally block a merger, but they can complicate the process. U.S. Airways and America West Airlines have been trying to combine operations for two years, but have been unable to resolve issues related to pilot seniority, the New York Timesnoted.
Delta chief executive Richard Anderson would run the merged airline, which would be called Delta. Delta Chairman Daniel Carp would keep that title, while Northwest Chairman Roy J. Bostock would become vice chairman. Another Delta executive, Edward H. Bastian, would be president and chief financial officer.
Delta would have seven of 13 seats on the combined board. Northwest would get five seats, one held by Bostock and another by current Northwest C.E.O. Douglas M. Steenland. One director will come from the Air Line Pilots Association.
The new airline would have its headquarters in Atlanta, but has pledged to keep "significant jobs, operations and facilities in Minnesota."
Delta Air Lines and Northwest Airlines agreed to merge in a deal that will create the world's largest carrier and may touch off a wave of consolidation within the US aviation industry Source: FT.com - US homepage | 15 Apr 2008 | 2:00 am
Reuters - Bear Stearns Cos said on
Monday profit fell 79 percent in its fiscal first quarter,
ahead of a liquidity crisis that led to the investment bank's
purchase by JPMorgan Chase & Co .
NEW YORK (Reuters) - Bear Stearns Cos said on Monday profit fell 79 percent in its fiscal first quarter, ahead of a liquidity crisis that led to the investment bank's purchase by JPMorgan Chase & Co .
TOKYO (Reuters) - Concern that the U.S. economy will slip
into a recession is rising, Japanese Economics Minister Hiroko
Ota said on Tuesday, adding that any impact on the Japanese
economy will depend on how long the U.S. downturn lasts.
Reuters - Concern that the U.S. economy will slip
into a recession is rising, Japanese Economics Minister Hiroko
Ota said on Tuesday, adding that any impact on the Japanese
economy will depend on how long the U.S. downturn lasts.
Inflation accelerated in the March quarter, with nearly half the damage done by higher food prices.
The consumers price index rose 0.7 per cent in the quarter, of which higher food prices contributed 0.34 percentage points and... Source: New Zealand Herald - Business | 15 Apr 2008 | 12:45 am
Reuters - Chrysler LLC and Nissan Motor
Co Ltd (7201.T) unveiled a production alliance on Monday that
gives the U.S. automaker the small car it lacks and allows the
Japanese company to stay in the competitive full-size U.S.
pickup truck market.
The Australia and New Zealand Banking Group (ANZ), which owns the ANZ and National Banks in New Zealand, has decided to stop new lending to stock margin lending firms across the Tasman in the wake of the collapse of Opes Prime. The... Source: New Zealand Herald - Business | 15 Apr 2008 | 12:30 am
A sharp rise in tomato prices helped push food prices up 0.7 per cent in March, Statistics New Zealand (SNZ) said today.
Releasing the Food Price Index for the month, SNZ said tomatoes increased 79.9 per cent in price during March,... Source: New Zealand Herald - Business | 15 Apr 2008 | 12:25 am
Reuters - Continental Airlines and
United Airlines have laid most of the groundwork for a
merger, two people briefed on the matter said, and could have a
deal ready "pretty quickly" if Delta Air Lines and Northwest
Airlines announce a tie-up, one of them said.
NEW YORK (Reuters) - Continental Airlines and United Airlines have laid most of the groundwork for a merger, two people briefed on the matter said, and could have a deal ready "pretty quickly" if Delta Air Lines and Northwest Airlines announce a tie-up, one of them said.
Procter & Gamble, the consumer products giant responsible for such brands as Pampers nappies and Crest toothpaste, is to move into the music business with a hip-hop label. Source: Telegraph Business | 15 Apr 2008 | 12:01 am
The Warehouse has launched a low interest credit card which will charge customers as little as 2.99 per cent interest for the first six months.
The Warehouse Low Interest MasterCard is also offering an introductory rate of 5.99... Source: New Zealand Herald - Business | 14 Apr 2008 | 11:45 pm
Confidence in the UK property market among surveyors hits its lowest level in March since 1978, according to a report. Source: BBC News | Business | World Edition | 14 Apr 2008 | 11:01 pm
Spain's economy is slowing more sharply than expected after the implosion of
the country's property bubble, triggering widespread gloom and rekindling
talk that it could leave the single European currency. Source: Latest Business News from Times Online | 14 Apr 2008 | 11:00 pm
Wachovia reported an unexpected loss yesterday as a jump in foreclosures in
California and Florida contributed heavily to a $4.4 billion ($£2.2 billion)
writedown in the first quarter. Source: Latest Business News from Times Online | 14 Apr 2008 | 11:00 pm
Try to get a Starbucks (NASDAQ: SBUX) at 3 AM. No such luck. But, according to data given to us by McDonald's (NYSE: MCD), more than 30% of its 13,700 US stores are up 24 hours, seven days a week. Over 50% are open 24 hours at least one day a week. The practice is not limited to the US. Last year, the number of McDonald's open around the clock more than doubled in China and rose 27% in Australia. The world's largest fast-food chain attributes a great deal of its recent same-store sales growth to morning menus and premium...
Beleaguered US bank Bear Stearns reveals that its net profit fell 79% in the three months until 29 February. Source: BBC News | Business | World Edition | 14 Apr 2008 | 10:31 pm
The New Zealand sharemarket opened lower today following a soft start to the week yesterday.
By 10.10am the benchmark NZSX-50 index was down 5.07 points to 3465 after weak Australian and Asian stocks kept the local sharemarket... Source: New Zealand Herald - Business | 14 Apr 2008 | 10:30 pm
The Reserve Bank has to keep inflation between 1 and 3 per cent, right?
Well, yes and no. Reserve Bank Governor Alan Bollard has a fair degree of flexibility, which is just as well given the number of times annual inflation has... Source: New Zealand Herald - Business | 14 Apr 2008 | 10:30 pm
Citigroup is allowing private equity groups bidding for up to $12bn of its leveraged loans to cherry pick from a wide range of assets with different prices and credit ratings – a move that could complicate Citi's efforts to clean up its balance sheet Source: FT.com - US homepage | 14 Apr 2008 | 10:22 pm
Help is at the end of a telephone line for embattled Blue Chip investors.
The Companies Office and the New Zealand Institute of Chartered Accountants have got together to provide a freephone number to connect Blue Chip investors... Source: New Zealand Herald - Business | 14 Apr 2008 | 10:00 pm
Wachovia, the fourth-largest US bank by assets, warned that the nation's economy was deteriorating more rapidly than expected as it revealed plans to raise $7bn in capital after a surprising first-quarter loss Source: FT.com - US homepage | 14 Apr 2008 | 9:17 pm
WASHINGTON -- Tax season became a little more taxing this year, with the average person spending more than a day and more than $200 collecting, calculating and compiling those numbers for the tax man, according to a report based on Internal Revenue Service figures.
With Wachovia posting an unexpected first-quarter loss of $350 million, investors are left to wait and wonder what's coming up around the next curve as more earnings reports from investment banks are due this week. Bob Moon reports. Source: Marketplace | 14 Apr 2008 | 8:17 pm
Rising food prices are making most everyday shoppers a bit more cost-conscious. So imagine what it's like for people who are trying to buy healthy foods for schools' hot-lunch programs. Sarah Gardner reports. Source: Marketplace | 14 Apr 2008 | 8:17 pm
Looking for new revenue sources, states are considering levying taxes on Internet retail. California is thinking about taxing music downloads, and New York says it's going to start hitting up companies like Amazon. Alisa Roth reports. Source: Marketplace | 14 Apr 2008 | 8:17 pm
The tax code hasn't gotten much attention in the presidential debate so far. But commentator and business historian John Steele Gordon says proposals to raise capital gains taxes might not be so smart. Source: Marketplace | 14 Apr 2008 | 8:17 pm
Those who think American stock markets are shaky should check out the Shanghai Composite index. It's off almost 35% so far this year. Marketplace's Scott Tong in Shanghai discusses the ways of Chinese investors with Kai Ryssdal. Source: Marketplace | 14 Apr 2008 | 8:17 pm
Faltering video chain Blockbuster is making a $1.3 billion offer for floundering electronics giant Circuit City. And that's prompting a lot of questions -- like, where's it going to get that kind of money? Lisa Napoli reports. Source: Marketplace | 14 Apr 2008 | 8:17 pm
The International Monetary Fund, the World Bank and the G-7 wrapped up three long days of top-level meetings this past weekend. But they couldn't devise a coordinated plan to unstick the troubled financial markets. Nancy Marshall Genzer reports. Source: Marketplace | 14 Apr 2008 | 8:16 pm
Anyone who's ever tried to organize a group purchase, event or boycott knows it can be like herding cats. A Chicago company is taking on that challenge with a Web-based tool for organizing the masses. Gabriel Spitzer reports. Source: Marketplace | 14 Apr 2008 | 8:16 pm
Oil rose overnight (NZ time) to a record close, bolstered by the weaker dollar and supply disruptions ahead of the US summer petrol season.
The US greenback slipped on worries about the gloomy economic outlook for the world's top... Source: New Zealand Herald - Business | 14 Apr 2008 | 8:15 pm
Carpenter Technology (CRS) Company only manages to hit low end of guidance. Drops to $48.10 from 52-week high of $79.66. Blockbuster (BBI) Bid for Circuit City (CC) sends investors running for the exits. Down to $2.52 from 52-week high of $6.69. First Horizon Natl Corp (FHN) Poor earnings out of Wachovia (WB) tearing other shares down. Sells off to $11.60 from 52-week high of $41.46. Huntington Bancshares (HBAN) Another victim of bank sell-off. Falls to $$8.96 from 52-week high of $22.96. Fifth Third Bancorp (FITB) Bank. Down to $18.96 from 52-week high of $43.32. Douglas A. McIntyre
Blockbuster, the video rental chain, said it had the support of Carl Icahn, one of its largest shareholders, for its offer to buy Circuit City, the troubled electronics retailer Source: FT.com - US homepage | 14 Apr 2008 | 6:13 pm
US agribusiness conglomerate, Cargill, reported record quarterly profits thanks to a jump in earnings at its food processing and sales unit Source: FT.com - US homepage | 14 Apr 2008 | 6:11 pm
Joseph Brandon, once considered a leading candidate to replace Warren Buffett at the helm of Berkshire Hathaway, has stepped down as head of its reinsurance division, General Re Source: FT.com - US homepage | 14 Apr 2008 | 6:05 pm
It's a fair bet that most investors would trust the judgment of Warren Buffett, chairman of Berkshire Hathaway, in the running of his companies. Federal prosecutors are apparently not as trusting.
Today, Joseph Brandon, the chief executive of General Re, the reinsurance subsidiary, resigned. His departure comes amid reports that federal prosecutors were pressuring Berkshire to replace Brandon—who had been on a short list of candidates to succeed Buffett—following the convictions last month of four former General Re executives on fraud charges.
"I haven't seen it this explicit," says Peter Henning, a professor at Wayne State University Law School and a founding editor of the White Collar Crime Prof Blog. The last explicit threat he could recall was when Eliot Spitzer, then the New York attorney general, refused to negotiate with insurance broker Marsh & McLennan back in October 2005, forcing the resignation of Jeffrey Greenberg—the son of Maurice Greenberg, formerly of insurance giant American International Group—as chief executive.
"Spitzer went on the warpath. I haven't seen prosecutorial pressure this explicitly since then."
During the trial of the former executives, prosecutors named Brandon an unindicted co-conspirator in the scheme of sham deals between General Re and A.I.G. to prop up A.I.G.'s balance sheet.
After the convictions, Paul Pelletier, one of the prosecutors, said, "We're not done. The investigation continues." He added, "We've got a lot of work to do to work up the corporate ladder."
Did Brandon resign in conjunction with a nonprosecution or deferred prosecution agreement? That is not yet known.
Berkshire did not return calls for comment. Tom Carson, spokesman for the United States attorney in Connecticut, declined to comment on the resignation or on whether the corporation remains under investigation. The trial was a joint prosecution by the Connecticut District, the Eastern District of Virginia, and the fraud section of the Department of Justice, where Pelletier is a lawyer.
It's an ongoing investigation," Laura Sweeney, a spokeswoman at the Justice Department, said of the General Re case. She declined to comment on Brandon's resignation or to confirm news reports that it had been prompted by pressure from federal prosecutors.
Henning, for one, does not believe that General Re will be charged. "I think it would have happened a while ago," he said. "Is there a wink and a nod here?"
And while deferred prosecution agreements are "the settlement du jour," he said, the government may have given General Re "a complete pass." (A recent article in the New York Times reported that the Justice Department has entered deferred prosecution agreements with more than 50 companies suspected of wrongdoing during the last three years.)
Another forced resignation of a chief executive occurred in October 2006, when Frederick Lacey, a retired federal judge and former U.S. attorney, served as a monitor of Bristol-Myers Squibb under a 2005 deferred prosecution agreement that followed an accounting scandal. Lacey forced the resignation of Bristol's C.E.O., Peter Dolan, and its general counsel over their handling of a patent dispute.
But white-collar crime defense lawyers say Brandon's resignation does not signal some new trend in prosecutorial overreaching.
"I can't think of more than a handful," says Walter Brown of Orrick, Herrington and Sutcliffe. "A lot of prosecutors will take the position that they are not in the business of telling a company how to run itself."
But the potential for pressure exists, under guidelines for charging corporations released in December 2006 in what is known as the McNulty memo, for its author, Paul McNulty, then the deputy attorney general of the United States. One factor is whether the corporation has taken appropriate "remedial actions," among other things, "to replace responsible management, to discipline or terminate wrongdoers."
That can include firing the chief executive, says Brown. "It is really just the company deciding, based on the smoke signals" sent by the prosecutors, he says. "It's a natural thing to consider."
Like Henning, Brown suspects that General Re is "out of the woods on the allegations."
Brandon will be replaced by General Re's president, Franklin "Tad" Montross.
The European Union is playing hardball with the US aviation industry.
In order to reduce aviation-generated carbon emissions in Europe, the EU is requiring airlines to join a carbon cap and trade program no later than 2012. It's a European plan, but its not just for European airlines. Jacques Barrot, the EU transport commissioner, announced that all airlines with European service must participate, and those which don't may see access to lucrative European destinations chopped.
The US industry is not amused.
Other industries in Europe have been engaged in carbon trading since 2005, and EU environment ministers decided last year that its time for commercial avaiation to come to the party. Under their plan, airlines will be allocated carbon credits that they use to "pay" for their CO2 emissions on an annual basis. Airlines that come in under their quota will end the year with extra credits which they can then sell on the carbon market. And they'll have plenty of buyers -- pollution spewing airlines that exceed their yearly allowance will need to buy additional credits. This, in a nutshell, is how carbon trading works.
European airlines aren't exactly doing cartwheels over the plan, though with carbon trading a key part of the Continent's environmental strategy, they must have seen it coming. But non-European carriers say it's unfair and potentially illegal that the scheme is being imposed on any airline flying into or out of the EU.
The US airlines aren't having it. They say the Europeans are being hysterical and that forced participation in their carbon trading plan violates international treaties. The Air Transport Association, the trade group for US carriers, calls the European's focus on aviation emissions "out of proportion" and believes that the US industry is having success with market driven approaches like buying more fuel-efficient aircraft, reducing the weight of their planes, and investigating alternative fuels.
But EU airlines insist that if they have to join the carbon trading market, their US competitors should be forced to jump in as well. They expect to shell out up to $65 billion buying carbon credits over the next 15 years, and say that if other airlines aren't forced to do the same, it would amount to a massive tax on European aviation.
It's unlikely that the EU would ever go so far as to actually impose flight curbs. Foreign airlines would likely respond in kind, which would cause serious financial hardship all around. But even the threat shows just how far apart the EU and US are when it comes to aviation-related environmental oversight.
Is the EU overstepping its bounds? Threatening to suck the life out of an already fragile industry with a blanket of stifling regulation? Or is the US, with its "let the market take care of it" approach, not doing enough to hold aviation accountable for its carbon output?
"Tranche warfare" has broken out in the $450bn market at the heart of the credit crunch as investors scrap over the pools of debts that make up collateralised debt obligations Source: FT.com - US homepage | 14 Apr 2008 | 5:45 pm
Blockbuster's attempted takeover of Circuit City may have raised plenty of eyebrows, but it turns out that certain behind-the-scenes players at both companies have quite a history together.
Mark Wattles, an activist investor who has been agitating for change at Circuit City since taking a 6.5 percent stake in the company earlier this year, is no stranger to being a target of Blockbuster's roving eye.
Wattles founded Hollywood Entertainment, the second-largest video chain behind Blockbuster before it was sold to the smaller rival Movie Gallery in 2005. Before that deal was consummated, however, Blockbuster made its own higher bid for Hollywood Entertainment, which did not sit well with the antitrust regulators in Washington.
Wattles left the chief executive post at the video chain just days after Blockbuster's takeover attempt was made public in early 2005. He later teamed up with Blockbuster, offering to buy half of the Hollywood Video stores in order to help earn a green light from regulators for the Blockbuster deal.
It didn't work. Movie Gallery won its bid for Hollywood Entertainment, and the combined company is now in bankruptcy.
At the time of the takeover battle for his company, Wattles had what appeared to have been civil discussions with Carl Icahn, who was a major shareholder of both Hollywood Entertainment and Blockbuster. Icahn remains a major owner of Blockbuster shares, despite his furor over its failed takeover of Hollywood Entertainment, and Blockbuster said this morning that he supports its bid for Circuit City.
Icahn and Wattles are reportedly still chatty. Wattles told Bloomberg that Icahn told him that he was even willing to help the transaction financially if need be. "I view it as a very favorable transaction for shareholders relative to other opportunities,'' Wattles said of the Blockbuster and Icahn financing.
But the connections between Circuit City and Blockbuster don't stop there. Circuit City's largest shareholder today is a hedge fund called HBK Investments, which has a 9.2 percent stake. Although the fund has a history as an activist, it made it known that its investment in Circuit City, which was made last year, is a passive one.
The Dallas-based HBK, which was founded by former Merrill Lynch executive Harlan B. Korenvaes, should be more than pleased with today's 30 percent jump in Circuit City shares. It helps to make up for the loss it took earlier this year on its Blockbuster investment.
That's right, HBK once stood right alongside Icahn as the No. 1 shareholder of the video chain to Icahn's No. 2 stake. HBK's stake in Blockbuster was also a passive one and, ultimately, a very costly one.
The fund acquired its stake in Blockbuster in late 2004, when the stock traded for around $10 per share. It sold off enough of its stake to fall below the 5 percent ownership threshold required by the S.E.C. in January of this year, when a share was worth $3.28.
There's no word yet on what HBK thinks of Blockbuster's intention to buy Circuit City for $1 billion in cash. But considering that Blockbuster shares are down a whopping 17 percent today, it's safe to assume that Harlan B. Korenvaes is thankful he parted ways with Icahn at Blockbuster earlier this year.
Icahn's investment in Blockbuster is now down some 80 percent.
It's unclear just exactly how Blockbuster's unusual and unwelcome bid for Circuit City came about. But at least the major players have already made their introductions.
A $1.5bn plan to build 30,000 homes is launched to address a housing shortage in the West Bank and Gaza. Source: BBC News | Business | World Edition | 14 Apr 2008 | 5:10 pm
A deal between the two airlines could be announced as early as Tuesday, according to several reports citing anonymous sources close to the talks. Rising oil prices have added a sense of urgency to the merger negotiations, which have been ongoing for many months now. The rising fuel costs have forced four small airlines into bankruptcy in recent weeks.
The Wall Street Journalreports that the deal would value Northwest at around $3 billion, which is slightly more than its market capitalization as of Friday afternoon, but significantly lower than it was when talks began. Shares of both airlines rose more than 5 percent in morning trading on the news of an imminent deal.
The hurdle both airlines still need to overcome is reaching satisfactory terms for their pilots. Representatives for Delta's 6,000 pilots met this weekend in Atlanta, while union leaders of Northwest's 5,000 pilots called a meeting in Minneapolis.
The main sticking point for both pilot groups appears to be seniority lists. The lists are important to pilots because they determine scheduling and routing priorities in addition to ranking for pay.
The pilot groups can't formally block a merger, but they can complicate the process. U.S. Airways and America West Airlines have been trying to combine operations for two years, but have been unable to resolve issues related to pilot seniority, the New York Timesnotes.
An unexpected loss from Wachovia and its plans to raise $7 billion are stark reminders that the credit crisis is far from over.
That was underscored on Friday when a troubled March for General Electric's financial businesses caused the conglomerate to report a surprising miss in earnings. More upsetting news may come this week, when Merrill Lynch and Citigroup report first-quarter losses.
What is unsettling to investors is that nearly a year after the implosion in subprime mortgages first shook the markets, banks are still struggling to get an accurate reading on the depth of their losses. A number of housing markets continue to deteriorate, and events like the teetering of Bear Stearns in March can create damaging ripple effects for other institutions.
Wachovia reported a loss of $350 million, or 20 cents per share, in its first quarter compared with a profit of $2.3 billion, or $1.20 per share, in the quarter a year earlier. The fourth-largest bank in the nation will cut its dividend by 41 percent and will raise $7 billion from the sale of convertible preferred stock and common shares.
The bank is setting aside $2.8 billion for credit losses on mortgage-related investments. "The provision largely reflected more severe deterioration in the residential housing market, particularly in specific markets in California and Florida," Wachovia said.
Many of Wachovia's troubles stem from its 2006 acquisition of Golden West, a California-based lender that was a leader in adjustable-rate mortgages.
"With the benefit of hindsight, it is clear that the timing was poor for this expansion in the mortgage business," Ken Thompson, the chief executive of Wachovia, said in February.
Today Thompson said: "I'm deeply disappointed with our first-quarter results, but I am confident we're taking prudent and appropriate actions in this challenging period to restore Wachovia to a more profitable path. The precipitous decline in housing-market conditions and unprecedented changes in consumer behavior prompted us to update our credit-reserve modeling and rely less heavily on historical trends to forecast losses. As a result, we have substantially increased our reserves."
Wachovia is the latest big bank to shore up its capital. It follows the route taken last week by Washington Mutual, by selling shares. For Wachovia, however, this is the second time this year it has raised capital. Earlier, it raised $8.3 billion through the sale of preferred stock and securities.
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-Eleven executive hired by Blockbuster last year, said the proposal "creates a game-changing retail concept." Carl Icahn, the activist investor who owns more than 10 percent of Blockbuster, supports the proposal for Circuit City, Blockbuster said.
Circuit City acknowledged that it had received Blockbuster's proposal and said that it would "continue to carefully consider and evaluate" it.
The Circuit City statement also questioned how Blockbuster, a smaller company, could finance a deal. "In particular, Blockbuster's proposal appears to contemplate a rights offering of unprecedented size relative to the issuing company's market capitalization and at a price that is at a significant premium to Blockbuster's current market price."
"In addition, Circuit City and its advisers have a number of other fundamental questions regarding the structure, sources, and uses of funds and consents required with respect to the proposed transaction."
Shares of Circuit City are up 33 percent in mid-morning trading, while shares of Blockbuster are down more than 10 percent.
The merger proposal is odd for several reasons. For one, both companies have been struggling.
Blockbuster is engaged in a grinding battle with NetFlix, and its future is endangered by the kinds of digital downloads Apple and others are offering. 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.
AFP - Britain's biggest retailer Tesco on Tuesday said its net profit jumped by more than 12 percent in 2007-08 and added it planned to create 30,000 jobs during its current financial year.
Reuters - Economic data continues to suggest that
fears of a new "Great Depression" in the United States are
overblown. But in places like Miami and Fort Lauderdale, where
the housing bust has bitten hard and prices are rising fast,
the specter of economic stagnation twinned with inflation looms
all too real.
Reuters - Delta Air Lines Inc will buy
Northwest Airlines Corp for more than $3 billion under
a proposal unveiled Monday to create the world's biggest
airline, as carriers seek to counter skyrocketing fuel prices
and a weak economy.
Reuters - Bear Stearns Cos said on
Monday profit fell 79 percent in its fiscal first quarter,
ahead of a liquidity crisis that led to the investment bank's
purchase by JPMorgan Chase & Co .
Reuters - Concern that the U.S. economy will slip
into a recession is rising, Japanese Economics Minister Hiroko
Ota said on Tuesday, adding that any impact on the Japanese
economy will depend on how long the U.S. downturn lasts.
Reuters - Chrysler LLC and Nissan Motor
Co Ltd (7201.T) unveiled a production alliance on Monday that
gives the U.S. automaker the small car it lacks and allows the
Japanese company to stay in the competitive full-size U.S.
pickup truck market.
Reuters - Continental Airlines and
United Airlines have laid most of the groundwork for a
merger, two people briefed on the matter said, and could have a
deal ready "pretty quickly" if Delta Air Lines and Northwest
Airlines announce a tie-up, one of them said.