There is a fairly widely held theory that moves in the stock market are a good predictor of what will happen in the broader economy two quarters later. The Shanghai Composite, the largest measure of Chinese stock prices has dropped by over half since its October high of over 6,000. As The Wall Street Journal points out "It is crimping expansion in the country's nascent financial sector and may put a squeeze in corporate coffers." The drop in the index is signaling something much worse than a dip in the IPO market. The Chinese economy is facing serious problems and...
In the run up to the Pennsylvania primary next week, the headlines have focused on issues such as the Democratic candidates' religious piety and empathy for the working class.
Over the past year or two, a combo of new government regulations and a chaotic stock market - not to mention the continued slashing of traditional pensions - has spurred many companies to revamp their 401(k) plans in ways that can pay off big-time.
NEW YORK (MarketWatch) -- U.S. stocks will enter the coming week with newfound optimism, after a spate of quarterly results from ailing financial firms failed to spook jaded investors, while upbeat earnings at technology and multinational companies soothed concerns about global growth.
As disappointing quarterly results come pouring in, companies trying to boost profitability are looking to cut costs in a tried-and-true way: cutting tens of thousands of jobs.
LONDON (Reuters) - Royal Bank of Scotland's board is due to meet this weekend, industry sources said, to approve losses as high as 7 billion pounds and a rights issue of as much as... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 10:43 am
LONDON (Reuters) - Royal Bank of Scotland's board
is due to meet this weekend, industry sources said, to approve
losses as high as 7 billion pounds and a rights issue of as
much as 12 billion to be announced next week.
BEIJING (Reuters) - Daimler AG will sell its Smart small car in China from next year, head of sales and marketing Klaus Maier said on Saturday. Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 10:31 am
Turkmens are queueing up to sell their dollars in the gas-rich Central Asian state as rumours fly of a possible devaluation. Hundreds waited in the rain Friday to cash in... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 9:08 am
Iran's hard-line president declared that crude oil prices, now above $115 a barrel, are too low, state media reported Saturday. President Mahmoud Ahmadinejad told an oil and gas... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 8:51 am
The head of the World Trade Organization calls for aid policies to be refocused to improve agriculture. Source: BBC News | Business | World Edition | 19 Apr 2008 | 8:43 am
General Motors Corp. will sell its first gas-electric hybrid cars in China in July, introducing a model created in part by GM's Shanghai design center, the company said Saturday. The... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 7:08 am
Investment in start-up companies fell across the US last quarter as venture capitalists stepped back from the strong pace of dealmaking that has characterised the industry in recent years Source: FT.com - US homepage | 19 Apr 2008 | 7:07 am
Investment in start-up companies fell across the US last quarter as venture capitalists stepped back from the strong pace of dealmaking that has characterised the industry in recent years.The slide sent... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:07 am
A conference on the state's evolving carbon standard ponders ways to quantify global warming effects.
While much of the world argues over whether biofuels made from corn are worsening world hunger, the debate in California is shifting to new state rules that could revolutionize the way fuels are judged.
Legal wrangling disrupts plans to bring two vehicles to North American showrooms this year. In the race to bring... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
TOKYO -- Japan has asked the maker of Crocs to look into changing the design of its footwear after complaints that children wearing the colorful plastic clogs have had their feet injured on escalators... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
SAN FRANCISCO and NEW YORK, April 19 /PRNewswire/ -- Venture capital investment in U.S. companies slipped 7% in the first quarter of 2008 compared to the same period last Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 7:00 am
The company wants to shift resources to growing parts of its business. Most of the reductions will be among management. ... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
A conference on the state's evolving carbon standard ponders ways to quantify global warming effects. While much... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
But it also lowers the price per share for the maker of the 'Grand Theft Auto' video game series. Take-Two Interactive... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
But it also lowers the price per share for the maker of the 'Grand Theft Auto' video game series.
Take-Two Interactive Software Inc., publisher of the popular "Grand Theft Auto" video game series, said it wanted more time to consider a $2-billion buyout by larger rival Electronic Arts Inc. and it wanted more money. On Friday, half its wish came true.
Amid personal and professional turmoil, Henry Nicholas checks in to the Betty Ford Center. Broadcom Corp. co-founder... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
Joblessness is up 1.2 percentage points from a year earlier, with 229,000 more Californians looking for work than in March 2007.
California's unemployment rate hit 6.2% in March, the highest level in almost four years, spurred by a continuing downturn in construction and financial activities.
Citigroup's billions in losses could have been worse, so the Dow surges. But with recession likely, some investors question the market's resilience. ... Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Apr 2008 | 7:00 am
The disclosures from 2006 and 2007 indicate that he spent most of his own income, suggesting that Cindy McCain funds their lifestyle. The campaign cites privacy concerns in not releasing her data.
Sen. John McCain reported income of $405,409 last year, but the money he spent on charitable contributions, wages to household staff, alimony and taxes ate up most of that -- showing how his wife, Cindy, helped support a wealthy lifestyle.
With Citigroup's loss narrower than feared and other big firms boosting profits, the Dow jumps 228 points. Major indexes gain for the week.
The stock market rallied sharply Friday, capping its best week since February, after an array of companies posted results that topped analysts' estimates.
Farming has always been a risky business, at the mercy of bad weather, wars and drought. Now farmers' profits face a new and surprising enemy: speculators that some believe are driving... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 6:22 am
The dollar's plunge might be preventing Americans from taking that European vacation this summer, but it could be the very thing saving their 401(k)s from buckling. Some of the... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 6:13 am
AP - The dollar's plunge might be preventing Americans from taking that European vacation this summer, but it could be the very thing saving their 401(k)s from buckling.
PURCHASE, N.Y., April 19 /PRNewswire/ -- In the face of tight credit markets and an economic environment that has led to several industry failures, Eos Airlines, the... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 6:00 am
Reuters - Alliance Data Systems Corp
said on Friday it terminated a $6.76 billion sale to Blackstone
Group LP affiliates and has sued to win a $170 million
business interruption payment.
LOS ANGELES (Reuters) - Alliance Data Systems Corp said on Friday it terminated a $6.76 billion sale to Blackstone Group LP affiliates and has sued to win a $170 million business interruption payment.
Reuters - Retailer Sears Holdings Corp
said on Friday a credit agreement with Bank of America Corp
would come to an end after the bank would not agree to
renew it under existing terms. Source: Yahoo! News: Business | 19 Apr 2008 | 1:39 am
NEW YORK (Reuters) - Retailer Sears Holdings Corp said on Friday a credit agreement with Bank of America Corp would come to an end after the bank would not agree to renew it under existing terms.
NEW YORK (Reuters) - Retailer Sears Holdings Corp said on Friday a credit agreement with Bank of America Corp would come to an end after the bank would not agree to renew it under... Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Apr 2008 | 1:29 am
There's a moderately amusing McDonald's commercial where office workers bemoan the moribund state of the dollar until they realize how much they can buy with a buck on Mickey D's dollar menu.
Last month's near collapse of Bear Stearns hasn't reduced demand for the firm's top traders and salesmen in the mortgage-backed-securities business they once dominated.
Reuters - Investors will have seen enough
corporate results by the end of next week to determine if the
recent string of encouraging earnings was an anomaly or a real
sign stocks can weather the credit crisis and economic
slowdown.
NEW YORK (Reuters) - Investors will have seen enough corporate results by the end of next week to determine if the recent string of encouraging earnings was an anomaly or a real sign stocks can weather the credit crisis and economic slowdown.
Three former bosses of mortgage lender Fannie Mae agree to pay $31.4m for their role in an accounting fraud. Source: BBC News | Business | World Edition | 19 Apr 2008 | 1:02 am
Taxpayers' money could be put at risk under Bank of England plans to take on credit card debts from high street banks struggling to raise money because of the global credit crisis. Source: Telegraph Business | 19 Apr 2008 | 12:01 am
Clothing suppliers to Mk One, the struggling retail chain that has been put up for sale by Baugur, the Icelandic investor, are threatening legal action after the chain cancelled cheques sent out to them as payment. Source: Telegraph Business | 19 Apr 2008 | 12:01 am
Families are having to cut back on groceries, eating out and holidays as the credit crisis starts to have a profound effect on household spending, research by The Daily Telegraph has shown. Source: Telegraph Business | 19 Apr 2008 | 12:01 am
The price of essential household goods and bills is rising at twice the official rate of inflation, forcing families to spend increasing amounts of their disposable income on basic items Source: Telegraph Business | 19 Apr 2008 | 12:01 am
Mining company UK Coal is examining whether to re-open a deep mine that could become Britain's biggest pit. Soaring coal prices have made mining at the Harworth site near Nottingham, potentially economical again. Source: Telegraph Business | 19 Apr 2008 | 12:01 am
The treasury's budget shortfall soared to £10.2bn last month, leaving the Government's coffers in a perilous state as the UK enters what could prove a prolonged downturn. Source: Telegraph Business | 19 Apr 2008 | 12:01 am
An international early warning system should be established to ensure that future credit squeezes are identified and dealt with before the effects become widespread, says Gordon Brown Source: Telegraph Business | 19 Apr 2008 | 12:01 am
Given the pressure the move puts on the bank's chief executive, Sir Fred Goodwin, it might seem obvious that the bank has no choice but to appeal to shareholders for money. Source: Telegraph Business | 19 Apr 2008 | 12:01 am
The week was filled with news. There was news that Northwest Airlines and Delta Airlines would merge, creating a new industry leader. And, there was news that just over half of the 11 components of the Dow Jones Industrial Average that reported results this past week beat expectations. Google, meanwhile, didn't just beat expectations, it crushed them and also blew past expectations for so-called paid clicks, a key measurement of the company's success.
John McCain faced accusations of hypocrisy for failing to disclose his wife's tax records, despite his promise to bring greater transparency and accountability to government Source: FT.com - US homepage | 18 Apr 2008 | 11:29 pm
Royal Bank of Scotland is set to seek £10bn from its shareholders in a rights issue to strengthen its finances. Source: BBC News | Business | World Edition | 18 Apr 2008 | 11:27 pm
As the financial news remains focused on mortgages, we're hearing more about Fannie Mae and Freddie Mac. Tess asks Susan Wachter for a little help with the who's who. Source: Marketplace Money | 18 Apr 2008 | 11:26 pm
Life is hard enough without having to decipher everything. This week, friendly company trying to save you from foreclosure or "rescue scam?" Source: Marketplace Money | 18 Apr 2008 | 11:22 pm
A recent surge in the benchmark Libor interest rate has driven up other short-term rates, contributing to a rethinking about the direction of borrowing costs over the next year.
Franklin Raines, former chief executive of Fannie Mae has agreed to pay out $24.7m in a settlement over his alleged role in a 2004 accounting scandal that rocked the company Source: FT.com - US homepage | 18 Apr 2008 | 11:18 pm
Cash incentives and financial education have often been the purview of non-profits, but as Alisa Roth reports, New York City is throwing it's hat in the ring. Source: Marketplace Money | 18 Apr 2008 | 11:17 pm
SAN FRANCISCO (MarketWatch) - Red Kite Management Ltd. said on Friday that it's expanding into Asia as the largest metals-trading hedge fund firm benefits from rising prices.
It's not the most lucrative business in town, but a life in the theater has it's perks. On this week's A Day in the Work Life, we meet Off-Broadway theater owner Peter Martin. Source: Marketplace Money | 18 Apr 2008 | 11:10 pm
In this edition of Getting Personal, Chris and Tess talk about college savings, starting a retirement plan for a parent, paying for retirement and whether or not to to file taxes. Source: Marketplace Money | 18 Apr 2008 | 11:03 pm
Royal Bank of Scotland is this weekend mulling the option of selling its
Direct Line insurance business in an effort to sweeten investors furious
about a mammoth planned capital-raising of as much as £13 billion. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Luqman Arnold, the rebel shareholder pushing for boardroom reform at UBS, has
bought about another £150 million of shares in the beleaguered Swiss banking
group. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Soaring world coal prices, which have almost doubled over the past year, are
breathing life back into Britain's diminished coal industry. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Sir Fred is in a hole. Britain's pre-eminent high street banker, Sir Fred
Goodwin, the man who in happier times joked about the need for “mercy
killings” in the banking sector, may soon face calls for his own head on a
platter. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
The credit crunch took a further toll on Citigroup yesterday as America’s
largest bank announced an extra $15.2 billion ($£7.6 billion) hit and said
that it would cut another 9,000 jobs worldwide. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Mortgage lending fell drastically last month from its levels of a year earlier
as severe shortages of home loans turned the traditional spring start of the
homebuying season into a damp squib. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
The chief of the CBI made a withering attack on the Government yesterday,
warning businesses that higher taxes could be in the pipeline as it sought
to boost its coffers before a general election. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Two years ago I decided to participate in national Take Your Dog To Work Day,
but didn't get far with the plan because (a) I don't actually own a dog; (b)
I have something of a dog phobia, having been attacked by a Doberman as a
child; and (c) my then employer didn't allow animals into the workplace for
health and safety reasons. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Marks & Spencer is to open at least 50 stores in India over the next five
years under a ground-breaking deal to become a leading brand in the
country’s £140 billion retail sector. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Airborne military technology developed to track the Taleban in Afghanistan
will be deployed in England to spot muggers, stolen cars and even illegal
immigrants arriving by sea. Source: Latest Business News from Times Online | 18 Apr 2008 | 11:00 pm
Promised a pile of cash for your home equity? Carolyn Bigda tells Tess about how some banks are cutting back and what you can do to protect yourself. Source: Marketplace Money | 18 Apr 2008 | 10:54 pm
Oil prices cross $117 a barrel for the first time after militants in Nigeria claim an attack on an oil pipeline. Source: BBC News | Business | World Edition | 18 Apr 2008 | 10:47 pm
Investor's Business Daily - The federal funds rate is low enough to boost economic growth as the lagged impact of earlier interest rate cuts kicks in, Philadelphia Fed President Charles Plosser said. He warned against seeing rate cuts as "the solution to most, if not all, economic ills." He noted that the real fed funds rate is negative for the first time since '03-04. He said it's important to defend the currency. Source: Yahoo! News: Business | 18 Apr 2008 | 10:44 pm
With loans harder to come by, more Americans have resorted to raiding their 401(k)s, but as Josephine Bennett reports, borrowing early can have big consequences. Source: Marketplace Money | 18 Apr 2008 | 10:43 pm
Citigroup reports a loss of $5.11bn and cuts 9,000 jobs as the credit crisis continues to take its toll. Source: BBC News | Business | World Edition | 18 Apr 2008 | 10:42 pm
Half of workers have no way to save for retirement. Economics editor Chris Farrell sets the story straight on a California proposal to give every worker a retirement savings plan. Source: Marketplace Money | 18 Apr 2008 | 10:37 pm
Full-time students can use their parents' insurance, but as graduation nears, Tess asks Stephen Finan about health care options after college. Source: Marketplace Money | 18 Apr 2008 | 10:33 pm
DETROIT (Reuters) - "The Turnaround Kid" was advertised by publisher HarperCollins as an inside account of the corporate turnarounds that author Steve Miller has been involved in as one of corporate America's "fix-it" men.
Demand for fine wine in Asia has sent the price of the best French vintages to new highs as buyers in Hong Kong take advantage of the recent scrapping of high import tariffs Source: FT.com - US homepage | 18 Apr 2008 | 10:32 pm
LOS ANGELES (Reuters) - Wendy's International Inc rejected a cash and stock takeover bid and an offer to combine with Arby's, billionaire Nelson Peltz's businesses said on Friday as the hamburger chain argued both offers were low.
With food prices on the rise, Sarah Gardner asks why it costs twice as much to make an omelette. She discovers cracking the price of eggs is quite the riddle. Source: Marketplace Money | 18 Apr 2008 | 10:23 pm
US mortgage rates soared this week after a dramatic sell-off in the Treasury market that hit housing sector recovery hopes Source: FT.com - US homepage | 18 Apr 2008 | 10:16 pm
Oil prices hit a record high $117 a barrel Friday as jitters over Nigerian oil supplies outweighed a rally in the dollar and fears of an economic slowdown in giant energy consumer China.
US light crude settled up $1.83 at $116.96... Source: New Zealand Herald - Business | 18 Apr 2008 | 10:00 pm
Reuters - Citigroup Inc , Merrill Lynch &
Co and Wachovia Corp this week announced 12,400
job cuts, and the number of pink slips is likely to rise as
losses mount and the economy works its way out of its malaise.
NEW YORK (Reuters) - Citigroup Inc, Merrill Lynch & Co and Wachovia Corp this week announced 12,400 job cuts, and the number of pink slips is likely to rise as losses mount and the economy works its way out of its malaise.
In Israel there are traditional restrictions on the availability of bread during Passover. But this year, both the pious and the secular have reason to celebrate. Daniel Estrin reports. Source: Marketplace | 18 Apr 2008 | 9:45 pm
The Oakland Athletics once rode an innovative strategy called sabermetrics to success in Major League Baseball. The team is now struggling, but commentator Dan Drezner says it's not because the strategy has failed. Rather, most of the other teams are using it too. Source: Marketplace | 18 Apr 2008 | 9:45 pm
Stockbroker and business analyst David Johnson chats with host Tess Vigeland about what happened on Wall Street this week and what may lie ahead. Source: Marketplace | 18 Apr 2008 | 9:45 pm
Zimbabwean President Robert Mugabe is being blamed by his opposition and economists for the collapse of what was once southern Africa's breadbasket. And the nation's current political impasse is only prolonging its pain. Gretchen Wilson reports. Source: Marketplace | 18 Apr 2008 | 9:45 pm
Mortgage applications are up and a new poll says a majority of Americans think now is a good time to buy a home. Still, many who take the plunge are finding themselves up against a new roadblock. Amy Scott reports. Source: Marketplace | 18 Apr 2008 | 9:44 pm
Wal-Mart says it's going to stop selling baby bottles made with a plastic called BPA, and the Canadian government plans to ban their sale. Meanwhile, glass bottle sales are taking off. Sarah Gardner reports. Source: Marketplace | 18 Apr 2008 | 9:44 pm
Mexican immigrants are sending smaller portions of their paychecks home because of tumbling wages and fewer jobs in America. Many are returning home, but they're finding the economic picture there isn't much better. Dan Grech reports. Source: Marketplace | 18 Apr 2008 | 9:44 pm
Citibank, the nation's biggest bank, says it lost $14 billion in the first quarter. But its assurance that it was working to climb out of the hole was good enough for investors, who bumped up its stock 4%. Bob Moon reports. Source: Marketplace | 18 Apr 2008 | 9:37 pm
LOS ANGELES (MarketWatch) - The campaign of Sen. Hillary Clinton took a blow Friday when another former cabinet member in her husband's administration, ex-Labor Secretary Robert Reich, backed rival Democratic presidential candidate Sen. Barack Obama.
Banks will be able to swap their mortgages for £50bn of government bonds, the BBC learns. Source: BBC News | Business | World Edition | 18 Apr 2008 | 8:46 pm
Reuters - Ex-Fannie Mae chief Franklin
Raines and two other former executives agreed to pay more than
$31 million in a settlement over their roles in a 2004
accounting scandal at America's largest home financing agency,
its regulator said on Friday.
NEW YORK (Reuters) - Ex-Fannie Mae chief Franklin Raines and two other former executives agreed to pay more than $31 million in a settlement over their roles in a 2004 accounting scandal at America's largest home financing agency, its regulator said on Friday.
NEW YORK (Reuters) - Oil prices hit a record high $117 a barrel Friday as jitters over Nigerian oil supplies outweighed a rally in the dollar and fears of an economic slowdown in giant energy consumer China.
Citigroup underlined the plight of financial firms squeezed by the credit crunch and the slowing US economy by announcing a $5.1bn quarterly loss, nearly $16bn in writedowns and 9,000 job cuts Source: FT.com - US homepage | 18 Apr 2008 | 7:52 pm
UK Prime Minister Gordon Brown is to urge the US to lead the world in tackling global problems. Source: BBC News | Business | World Edition | 18 Apr 2008 | 7:45 pm
Marks & Spencer agrees to team up with Indian retail firm Reliance to expand its presence in the region. Source: BBC News | Business | World Edition | 18 Apr 2008 | 6:42 pm
Reuters - Women's clothing retailer Talbots Inc
stood by its 2008 outlook on Friday and said meeting
that goal would give it sufficient funding to continue turning
around its business.
It is not uncommon during a serious recession for the shares of many public companies to drop. 24/7 Wall St. has assumed, for the purpose of finding stocks which could rise sharply, that the current downturn will last from the second quarter of this year until the second quarter of 2009. We have gone though the stock market by industry looking for either sectors which have been damaged by present circumstance but could come out of a slump as a recession ends. We have also evaluated areas of the business world which tend to do well whether the economy is...
Clean Harbors Inc. (NASDAQ: CLHB) announced a 2.5 million share follow-on common stock offering after market close in an SEC Filing last night. Goldman Sachs is the underwriter for the offering and is granted 375,000 over-allotment options. The proceeds from the offering for the waste management services provider should reach over $200 million and will be used for acquisitions, debt repayments, or working capital. Shares are up near 52-week highs at $64.84, up $0.16 on the day. The 52-week range is $42.52 to $67.58. You can join our open email distribution list to hear about other IPO's, secondary offerings, buybacks,...
Meritage Homes Corporation (NYSE: MTH) priced offering of 4 million common shares at $20.50 per share after market close yesterday. The proceeds to the homebuilder from the $82 million offering will be used for working capital and general corporate purposes. Citi is the sole book-running manager granted 60,000 in over-allotments. The offering is expected to close April 23. Shares are down over 2% today from $20.89 to $20.38. The 52-week range is $7.04 to $38.72. You can join our open email distribution list to hear about other IPO's, secondary offerings, buybacks, special financings, restructurings and more. Rachel Lopez April 18,...
Teekay LNG Partners (NYSE: TGP) priced its follow-on offering of 5 million common shares at $28.75 each. The $143 million offering will be used to repay outstanding balances on a revolving credit facility that funded vessel acquisitions. The marine transportation company for the energy industry said that Teekay Corporation (NYSE: TK), the prior parent company, agreed to buy 1.7 million common shares at these terms. Underwriters for the transaction are listed as Citi, Wachovia UBS Investment Bank, Raymond James & Associates, Inc., Deutsche Bank Securities and Dahlman Rose & Company. They are granted a 30-day option to purchase up to...
Purchasing a leasehold property is a relatively cheap way of getting real estate in a booming market.
The concept seems great to many people: buy property at a discount and own only the house and not the ground it sits on.
And... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
The Government's decision to veto the partial takeover offer of Auckland International Airport by the Canada Pension Plan Investment Board (CPPIB) is a major worry for investors.
The concern is that this was a politically motivated... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
Two years ago Jim Doyle left his role with American conglomerate Brunswick with the intention to semi-retire.
Starting at 5am was commonplace for the former chief executive of New Zealand technology darling Navman - then owned... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
Internet leader Google said it saw no impact from a weakening US economy as it posted a better-than-expected quarterly profit and waved off fears of an online advertising slump.
Google's hard-hit shares surged 18 per cent above... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
Betting on rising stocks in a bear-market environment can be as dangerous as crossing a busy highway. Many investors take the risk anyway.
Motivating them is a desire to recoup losses from the six-month decline in global equity... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
Leasehold land parcels are dotted all over Auckland and, indeed, New Zealand. More leasehold titles are being created out of freehold land in a move some regard as permanently disempowering property owners and removing their rights... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
Credit rating agency Fitch Ratings has affirmed its ratings on Hanover Finance, as the company remains profitable despite problems facing the finance company sector.
Hanover, New Zealand's third-largest privately owned finance... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
World trade growth will slow to 4.5 per cent this year from 5.5 per cent last year and 8.5 per cent in 2006, the World Trade Organisation (WTO) has said.
In its first forecast for the year, the WTO said the financial market turbulence... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
Merrill Lynch posted its third straight quarterly loss on Thursday and said it planned to cut 2900 more jobs after recording more than US$6.5 billion ($8.3 billion) in write-downs on sub-prime mortgages and other risky assets.
The... Source: New Zealand Herald - Business | 18 Apr 2008 | 5:00 pm
American Campus Communities (NYSE: ACC) priced its public offering of 8 million shares of common stock at $28.75 per share. The underwriters, Merrill Lynch, KeyBanc Capital Markets, Deutsche Bank Securities, and JP Morgan, are allotted an additional 1.2 million shares. The $230 million in proceeds for the student housing owner and manager will be used to pay for their purchase of rival GMH Communities Trust for $1.4 billion if the deal goes through. Should the deal fall through, the cash will be used to repay debt obligations, to fund pipeline development, or for potential acquisitions. Prior to this offering, the...
Epocrates Inc. submitted an SEC filing to come public via an IPO Thursday night. The filing shows a proposed maximum aggregate offering price of $75 million, although this number is for filing purposes only. They applied to trade on the Nasdaq Global Market under the symbol “EPOC.” The underwriters are listed as Citi, Peter Jaffray, William Blair and Company, and Needham & Co. Epocrates provides medical information support tools to healthcare professional. The company has strong brand recognition and over 500,000 healthcare professionals actively subscribe to use their product, including 1 in 4 doctors and 1 in 3 medical students....
BGC Partners (NASDAQ: BGCP), formerly eSpeed, has made a shelf filing with the SEC. It intends to offer up to $460 million additional Class A Common Stock. Interestingly enough, the he global inter-dealer broker currently has its market cap is listed as $602 million. The company intends to used the proceeds for the offering for buying back Class A Common Stock from certain executive officers, as well as any other general corporate purposes. The underwriter for the offering is Deutsche Securities.The company generated a net income of $31 million in 2007. Shares are down marginally by $0.07 to $11.91. The...
VeriFone Holdings, Inc. (NYSE: PAY) made an SEC filing showing that its wholly owned subsidiary, VeriFone, Inc., has scheduled a meeting with the lenders party to its Credit Agreement that was dated as of October 31, 2006, as amended by a First Amendment dated as of January 25, 2008. The borrower, VeriFone Intermediate Holdings, Inc., JPMorgan Chase Bank, N.A., as Administrative Agent and Swing Line Lender and as an L/C Issuer, Bank Leumi USA and Wells Fargo Bank, N.A., as Co-Documentation Agents, Lehman Commercial Paper Inc., as Syndication Agent, and the lenders from time to time as party thereto. Verifone...
On Monday, Don Turkleson, SVP & CFO of Cheniere Energy inc. (AMEX: LNG) owned 573,163 shares of common stock in the company. As of now, he owns 147,063. He sold 426,100 shares for what looks like an average price in the range of $11.50/share. That's about $4.9 million worth--and according the SEC filings, the sales were made to meet a broker margin call. The stock closed at $10.86 yesterday, down about $6.00 from Monday's close, and near the bottom of its 52-week range of $9.99 to $43.50. Ouch. Cheniere's share price also dived on Wednesday, from $14 to $11, on...
The Asian Development Bank offers loans to countries dealing with the effects of rising food prices. Source: BBC News | Business | World Edition | 18 Apr 2008 | 2:36 pm
Shares in MF Global. the derivatives broker, surged more than 24 per cent in trading after the company improved its guidance for the past quarter and announced an overhaul of its risk-control practices Source: FT.com - US homepage | 18 Apr 2008 | 1:38 pm
Earnings reports from I.B.M., Google, and General Electric have shown that the world economy, particularly in Asian and emerging markets, is still churning ahead—even as the U.S. economy is slowing down.
That trend is underscored today by Caterpillar, which sells the tractors, bulldozers, and other heavy equipment used to build infrastructure in rapidly industrializing countries. Its first-quarter earnings rose 13 percent, more than expected, to $922 million, or $1.45 per share, compared with $816 million, or $1.23 per share, in the quarter a earlier.
Sales climbed 18 percent, to $11.8 billion. Sales outside North America—which now account for 58 percent of Caterpillar's business, up from 53 percent a year ago—rose 30 percent. In North America, sales were up just 4 percent.
"Even though we're currently weathering a recessionary storm in the United States, we expect the rest of the world to continue to invest in infrastructure growth well into the next decade," Jim Owens, Caterpillar's chief executive, said.
Exporters like Caterpillar have also benefited from the weak dollar, which makes their products more competitively priced abroad. Of the increase in sales this quarter, the impact of the dollar added 17 percent.
Strong global demand could generate earnings for a number of American companies that will prove stronger than current forecasts. And that could buoy stocks, notes Tom Lauricella in the Wall Street Journal.
And in a reversal from the last downturn, manufacturing may be among the few winners.
"Growth in exports...will tend to put the manufacturing sector in better stead than some other parts of the U.S. economy," Richard Fearon, Eaton's chief financial officer, told the Journal. "So this is a little bit the opposite of what happened in 2000 and 2001."
Citigroup is preparing for more surgery as it reports another big quarterly loss and additional write-downs as a result of the credit crunch.
On a conference call today, the bank says that it will be cutting an additional 9,000 jobs.
Citi has already been cutting jobs—more than 4,000 announced earlier this year—reorganizing businesses and selling some units, like Diners Club.
Vikram Pandit, the chief executive of Citi, said that there will be more changes to come. "As we move into the second quarter and beyond, we will continue to divest nonstrategic assets and allocate capital to the products and regions that will drive increased revenues, enhance the value of our franchise, and ultimately, maximize shareholder value," he said.
In an interview with the Financial Times, Pandit indicated that deep job cuts are coming.
"It is clearly feasible for us to take 10, 15, 20 percent off our cost base, especially in information technology and operations," Pandit told the paper.
That would mean tens of thousands of jobs lost worldwide.
Wall Street would take the brunt of it. The financial industry has already been busy retrenching. Lehman Brothers is reducing its workforce by 5 percent, and Morgan Stanley is cutting several thousand jobs. And perhaps as many as two thirds of Bear Stearns' 14,000 employees will lose their jobs when J.P. Morgan Chase completes its takeover of the firm.
When there is a freeze on Wall Street jobs, the New York economy—and real estate, art sales, and luxury goods—certainly feel a chill.
Although Wall Street accounts for just 5 percent of the jobs in New York, it provides nearly a quarter of all wages in the city.
With Citigroup, Pandit is trying to prune a sprawling global giant that was created a decade ago by the merger of Citicorp and Sandy Weill's Travelers. As Jesse Eisinger detailed in Condé Nast Portfolio, the bank has staggered under its own weight, suffering from high costs, a lack of coordination among operations, and underinvestment in technology and businesses.
Since taking over in December, Pandit has been reviewing the bank's operations and has already moved to cut back its holdings of leveraged loans and its mortgage exposure. The bank has raised more than $30 billion in capital and has cut its dividend.
The write-downs for the first quarter was not as bad as some estimates, and the loss was smaller than the $10 billion hit in the fourth quarter of 2007.
Still, Citigroup's quarter was a complete reversal of a year ago. It reported a loss of $5.1 billion, or $1.02 per share, compared with a profit of $5 billion, or $1.01 per share, in the quarter a year earlier. The loss was wider than analysts' estimates. Revenue slumped 48 percent, to $13.22 billion.
The bank took $12.1 billion in write-downs: $6 billion on investments related to subprime mortgages, $3.1 billion on leveraged loans, $1.5 on its exposure to bond insurers, and $1.5 billion on its inventory of auction-rate securities. Citi is also accounting for an increase of $3.1 billion in credit costs tied to consumer lending.
"This is the quarter they get to clear the decks," Arthur Hogan, chief market analyst at Jefferies & Co., told Reuters. "Vikram Pandit is coming in and making pretty big changes, and that's what he gets to do. It's a cathartic quarter."
Paypal says it will block "unsafe browsers" as part of wider anti-phishing efforts. Source: BBC News | Business | World Edition | 18 Apr 2008 | 11:55 am
AP - The dollar's plunge might be preventing Americans from taking that European vacation this summer, but it could be the very thing saving their 401(k)s from buckling.
Reuters - Alliance Data Systems Corp
said on Friday it terminated a $6.76 billion sale to Blackstone
Group LP affiliates and has sued to win a $170 million
business interruption payment.
Reuters - Investors will have seen enough
corporate results by the end of next week to determine if the
recent string of encouraging earnings was an anomaly or a real
sign stocks can weather the credit crisis and economic
slowdown.
Reuters - Citigroup Inc , Merrill Lynch &
Co and Wachovia Corp this week announced 12,400
job cuts, and the number of pink slips is likely to rise as
losses mount and the economy works its way out of its malaise.
Reuters - Ex-Fannie Mae chief Franklin
Raines and two other former executives agreed to pay more than
$31 million in a settlement over their roles in a 2004
accounting scandal at America's largest home financing agency,
its regulator said on Friday.
Reuters - Women's clothing retailer Talbots Inc
stood by its 2008 outlook on Friday and said meeting
that goal would give it sufficient funding to continue turning
around its business.