FRANKFURT (Reuters) - Italian carmaker Fiat has held talks with U.S. rival Chrysler in recent weeks over various forms of cooperation, Alfa Romeo brand chief Luca de Meo told German magazine WirtschaftsWoche in a story published on Saturday.
U.S. stocks finish with losses for the day and tumble sharply on the week, as crude oil surges above $130 a barrel, putting pressure on a market beseiged by worries that inflation will crimp consumpation and further weaken the economy.
Warren Buffett has decided not pull his punches about how bad things are going to get in the US. Speaking of the economy, Reuters quotes him as saying "But the people are already feeling the effects. It will be deeper and last longer than many think." Buffett's name gets added to those of people like George Soros who have strong concerns about the next several quarters. The stock market is supporting their views. GM (GM), GE (GE), airlines, and many companies in the financial sector now trade at 52-week lows. The Fed has revised its forecast for GDP down. Many...
In late 2005 and early 2006, GM's (GM) stock hit multi-year lows, dropping below $20. Ford's (F) shares also sold down on fears that both companies could face Chapter 11. Their costs were far too high and their pieces of the US market were being lost to Toyota (TM) and other competitors. The UAW had become the worst enemy of GM. Costs of maintaining health benefits and pensions had become back-breaking for the company. Now GM has eliminated many of those labor costs through a new UAW contract and employee buy-outs. The largest immediate problem at the US automaker is...
Stocks fluctuate on oil prices, Fed reports, inflation fears Wall Street started the week mixed, with the Dow ending higher but the Nasdaq down. Tuesday and Wednesday saw the Street fall as worries about inflation held investors back and the Fed reported a pessimistic outlook for the next two years. The Dow managed to close slightly higher Thursday when oil prices finally pulled back. The TSX started a shortened week off with a bang on Tuesday when it went over the 15,000 mark for the first time, driven by the high price of oil. However, the rise was short-lived as...
Reuters - The United States is already in a
recession and it will be longer as well as deeper than many
people expect, U.S. investor Warren Buffett said in an
interview published in German magazine Der Spiegel on Saturday.
BERLIN (Reuters) - The United States is already in a recession and it will be longer as well as deeper than many people expect, U.S. investor Warren Buffett said in an interview published in German magazine Der Spiegel on Saturday.
0523b_UAW_AmericanAxle General Motors Corp.'s stock dropped almost 5 percent Friday after the company reported that strikes at some of its own plants and parts supplier American Axle... Source: Infocious RSS raw feed - channel BNewsBusiness | 24 May 2008 | 11:25 am
Reuters - China will issue three
licenses for high-speed third-generation mobile phone services
and called for a merger of China Unicom and Netcom, two of its
four biggest telecoms providers, in a long-awaited industry
revamp.
HONG KONG/SHANGHAI (Reuters) - China will issue three licenses for high-speed third-generation mobile phone services and called for a merger of China Unicom and Netcom, two of its four biggest telecoms providers, in a long-awaited industry revamp.
It’s amazing: The basic Corvette style, around for years, still turns heads. Especially when it comes in what Chevy calls “atomic orange metallic” paint.
In a reorganization of China's telecom industry, which would be almost unimaginable in the West, the country plans to merge two of its largest mobile companies, China Netcom (CN) and China Unicom (CHU). The new firm will be issued on of the three high-speed wireless licenses which the government plans to grant. China's two largest phone companies, China Mobile (CHL) and China Telecom, will receive the other two contracts. According to Reuters, the 3G development will "unleash billions of dollars in spending for network gearmakers." Those companies would include Nokia (NOK), Nortel (NT), Ericsson (ERIC),and Motorola (MOT). The news many...
BOSTON, May 24 /PRNewswire-FirstCall/ -- Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, announced today that it has entered into agreements with... Source: Infocious RSS raw feed - channel BNewsBusiness | 24 May 2008 | 9:53 am
Foot Locker Inc., owner of more than 3,750 namesake shoe stores, rose the most in more than four years in trading a day after the company reaffirmed a full-year profit forecast that exceeded some analysts'... Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:37 am
It didn't take Time Warner CEO Jeff Bewkes long to figure out how to use the $9.25 billion dividend the media giant gets from spinning off its cable unit. Just two days after Bewkes detailed plans to... Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:37 am
Lehman Brothers has a big credibility problem and may need to raise capital to earn back its Street cred, cage-rattling hedge-fund manager David Einhorn told The Post. Einhorn, who runs the $6 billion... Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:37 am
PARIS - Investigators at Socit Gnrale said they suspect a former futures trader had help as he tried to cover up unauthorized positions that led to billions in losses at the French bank. In two long-awaited... Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:37 am
Beer bid A potential $46 bil lion, $65-a-share bid for Anheuser-Busch by larger brewer InBev NV would create a company that distrib utes 1/4 of the world's beer and might save them $450 million a year... Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:37 am
The housing industry tumbled deeper into its two-year recession - and there doesn't appear to be an end in sight until next year, at the earliest. A worse-than-expected outlook emerged yesterday, as sales... Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:37 am
The worlds largest corporate deal in an emerging market, a tie-up worth nearly $50 billion between two telecommunication companies, came to a screeching halt. Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 May 2008 | 8:05 am
India's gleaming new Bangalore international airport opened Saturday despite protests by residents and businesses who said getting there by road could prove a nightmare. The... Source: Infocious RSS raw feed - channel BNewsBusiness | 24 May 2008 | 7:46 am
Merger talks between India's biggest mobile phone services firm, Bharti Airtel, and South Africa's flagship MTN Group have been called off, the Indian company said in a statement on... Source: Infocious RSS raw feed - channel BNewsBusiness | 24 May 2008 | 6:27 am
For the first time since the bubble burst earlier this decade, information technology stocks have overtaken financials as the largest sector by market value in the Standard & Poor's 500... Source: Infocious RSS raw feed - channel BNewsBusiness | 24 May 2008 | 5:14 am
For the first time since the bubble burst earlier this decade, information technology stocks have overtaken financials as the largest sector by market value in the Standard & Poor's 500... Source: Infocious RSS raw feed - channel BNewsBusiness | 24 May 2008 | 5:11 am
Stocks could use a holiday during the coming Memorial Day-shortened week from the escalating energy prices and inflationary data that have dogged the equities market, fueling persistent worries about the ailing U.S. economy.
Jeff Mayer and Craig Overlander, two senior Bear Stearns executives who moved to senior positions at JPMorgan Chase just weeks ago, are leaving the bank Source: FT.com - US homepage | 24 May 2008 | 3:11 am
Hedge fund Brevan Howard proved investors still have an appetite for the asset class yesterday as its $1bn (£505m) investment vehicle floated on the London Stock Exchange with double the expected level of funds. Source: Telegraph Business | 24 May 2008 | 12:01 am
The UK oil giant's joint venture is becoming bogged down by intrigue which some observers believe may have been engineered by the Kremlin. Until recently, the tangled web tightening around BP's operations in Russia seemed to be an irritating - but resolvable - distraction. However, in-fighting between investors in BP's joint venture, TNK-BP, and political intrigue over the role of Russia's energy superpower, Gazprom, are now beginning to constrict day-to-day operations. Source: Telegraph Business | 24 May 2008 | 12:01 am
Europe's airlines will be put at a major competitive disadvantage if the European Union implements a punitive version of carbon trading at a time of soaring oil prices and rising taxation, British Airways has warned. Source: Telegraph Business | 24 May 2008 | 12:01 am
Could the Treasury's delay in reappointing Paul Myners to the Court of the Bank of England have anything to do with a critical treatise he recently penned on the pliability of bank boards? Source: Telegraph Business | 24 May 2008 | 12:01 am
For beer industry watchers, news that Stella Artois brewer Inbev is considering a bid for Anheuser-Busch will hardly come as a bolt from the blue. An offer has been brewing for so long that for most people it was a case of when, not if. Budweiser's owner Anheuser has been looking lame for months and needed to buy or get bought. Source: Telegraph Business | 24 May 2008 | 12:01 am
Marston's, the pub operator and brewer, has batted away suggestions of following rivals planning to sell off their property estates as it reported a 19pc fall in pre-tax profits on share buybacks, tough trading conditions and higher costs. Source: Telegraph Business | 24 May 2008 | 12:01 am
The two-year-long slump in the US housing market shows little sign of abating, with average house prices falling by 8pc last month as the American economy continues to slow down. Source: Telegraph Business | 24 May 2008 | 12:01 am
Inbev, the maker of Becks and Stella Artois, has drawn up plans for an audacious $46bn (£23bn) take-over offer for US rival and Budweiser brewer Anheuser-Busch. Source: Telegraph Business | 24 May 2008 | 12:01 am
Shares in Daily Mail and General Trust recovered yesterday as investors digested Thursday's first-half results. Source: Telegraph Business | 24 May 2008 | 12:01 am
The housing boom has sent household debt levels through the roof and interest rates are becoming a national obsession.
The Reserve Bank's cash rate calls and any other event or data supporting the case for a move in rates are breathlessly... Source: New Zealand Herald - Business | 24 May 2008 | 12:00 am
Reuters - Sales of previously owned U.S. homes
slipped last month and the backlog of unsold properties hit a
record high, according to data on Friday that suggested the
market's downturn still has a long way to run.
Reuters - Sales of previously owned U.S. homes
slipped last month and the backlog of unsold properties hit a
record high, according to data on Friday that suggested the
market's downturn still has a long way to run.
WASHINGTON (Reuters) - Sales of previously owned U.S. homes slipped last month and the backlog of unsold properties hit a record high, according to data on Friday that suggested the market's downturn still has a long way to run.
Hillary Clinton voiced regret for evoking the assassination of Robert Kennedy as part of her explanation for why she was staying in the Democratic presidential race Source: FT.com - US homepage | 23 May 2008 | 11:25 pm
For the first time in months, the biggest political news wasn't about the presidential election. Instead, word that U.S. Senator Ted Kennedy had been diagnosed with brain cancer captivated the nation. With the startling news, the last of the four brothers whose lives dominated our political imagination for half a century looked set for his final exit from the public sphere.
Nothing says risky business like working with a saw all day. This week, we meet someone who loves the lumber he saws (and contrary to popular belief, his car is not actually made out of wood). Source: Marketplace Money | 23 May 2008 | 11:21 pm
It's going to be the showdown of the summer: the new iPhone 2.0 versus the BlackBerry Bold. Tess Vigeland talks to CNET.com editor Bonnie Cha about who has better odds of winning the battle. Source: Marketplace Money | 23 May 2008 | 11:12 pm
This week, Tess Vigeland and economics editor Chris Farrell give advice to a woman selling her rental property, and another woman who's not sure if her mortgage loan is too good to be true. Source: Marketplace Money | 23 May 2008 | 11:02 pm
Silverjet, the business-class only airline, was fighting for survival last
night after a $25 million ($£12.6 billion) rescue package appeared to have
collapsed.
In a sign of how tough the market has become, a cash lifeline arranged with a
Gulf investor only three weeks ago has failed to materialise.
Shares in the airline were suspended yesterday and the company gave warning
that it needed a cash injection “imminently” if it was to keep flying.
The Luton-based carrier, which offers business-class flights to New York and
Dubai for about one third the price of a British Airways ticket, is seeking
finance this weekend but analysts believe it is close to collapse.
BA and Virgin Atlantic are understood to be preparing contingency plans to
help stranded passengers should Silverjet be grounded.
David and Simon Reuben, the property billionaires, are also thought to be
preparing a plan should the company go bankrupt. The Reubens invested £10
million in Silverjet last year and could lead a creditor buyout to gain
control of the carrier’s assets, which include three Boeing 767 aircraft.
It is also rumoured that Silverjet has been asked to start paying for its fuel
in cash, which may require its pilots to carry tens of thousands of dollars
on flights to pay for the return trip.
At the start of this month the company announced that Viceroy Holdings, a
subsidiary of the Viceroy Fund, a hedge fund run by investors from the
United Arab Emirates, would invest $25 million in return for a 28 per cent
stake in the AIM-listed carrier. Lawrence Hunt, the chief executive, said
that a further $75 million would be made available to expand the airline,
which listed 18 months ago. It employs about 110 staff.
However, Silverjet attempted to draw down $5 million of the promised
investment and has so far been unable to do so. Sources close to the carrier
said that it appeared Viceroy had pulled the plug on its package.
Silverjet said yesterday that it was in discussions with $“other parties” and
its operations would continue. It has continued to take bookings but now
faces a new threat as passengers become wary of the airline and its
prospects for survival.
The carrier, along with the rivals Maxjet and Eos, was founded in an attempt
to tap the rapidly growing business travel market. However, the new start-up
carriers struggled to match the frequency of flights offered by larger
rivals and other perks such as air miles. Both Eos and Maxjet filed for
bankruptcy protection this year.
Silverjet said last year that it was losing about £1 million a month and this
is rumoured to have doubled in recent months. Its share price has fallen
from 120p at flotation to 13½p before its stock was suspended.
Andrew Fitchie, aviation analyst at Collins Stewart, said: “Silverjet has been
doomed to failure for a long time and the oil price has precipitated that.”
Another airline feeling the pressure from rising oil prices is bmi, formerly
British Midland. The privately held company said yesterday that its pretax
profits had halved to £15 million on revenue up 12 per cent to £1 billion,
partly as a result of rising fuel costs.
However, the carrier has included its Heathrow landing slots as an asset for
the first time and was able to increase its net value by £770 million. This
gives it a total asset value of £800 million, which analysts believe is an
attempt to price the carrier ahead of a potential sale. It is expected that
Sir Michael Bishop, the controlling shareholder, will auction his 50 per
cent stake this year. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
I have been a business journalist, on and off, for nearly a decade and over
that time I have attempted to answer a number of critical questions. They
have included: what's the best thing to do when your boss enters the
elevator? (look at your feet); does gorilla behaviour teach us anything
about commerce? (no); and, what do hedge fund managers actually do? (they
sit in front of computer screens like the rest of us). Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
The Civil Aviation Authority (CAA) has added its voice to calls for BAA, the
airports operator, to be broken up. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
Corporate confusion, inexperienced managers and a slipshod approach to risk
management plunged Société Générale into the biggest rogue trader scandal to
date, according to two internal reports published last night. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
Suez has pulled out of the race for British Energy, the nuclear generator,
dealing a fresh blow to government hopes of a competitive auction for the
company. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
Microsoft tried to shrug off its rejection by Yahoo! yesterday after
insisting that it was looking for other ways to spend its $50 billion ($£25
billion) acquisition pot. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
New Zealanders like to think of themselves as a bunch of DIYers -better to look after things yourself than pay some outsider.
And local entrepreneur Tony Ryburn is betting that this approach to owning and trading shares will translate... Source: New Zealand Herald - Business | 23 May 2008 | 11:00 pm
Shares in Anheuser-Busch, the owner of Budweiser beer, soared 7 per cent
yesterday amid speculation that InBev, of Belgium, has secured funding to
launch a $46 billion ($£23.2 billion) bid. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
The surging price of oil will lead to a shift to alternative sources of
energy, particularly hydrogen, a government adviser has said. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
China Mobile, the world's largest mobile phone company, has been granted
permission to begin offering fixed-line services, part of a move that
unleashes the long-awaited shake-up of the country's sprawling
telecommunications industry. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
Economics
The Chancellor’s hopes of revival in the economy by next year were
dealt a blow last night by an International Monetary Fund report arguing
that there is no scope for lower interest rates. Earlier, data showed GDP
growth at its weakest for three years in the first quarter, at 0.4 per cent,
after 0.6 per cent in the previous two quarters. Growth was bolstered by a
revival in consumer spending, up 1.3 per cent in the quarter, after a 0.1
per cent rise in the previous quarter. Growth was hit, however, by a 1.6 per
cent fall in capital investment spending and a 0.2 per cent drop in
industrial production. Source: Latest Business News from Times Online | 23 May 2008 | 11:00 pm
NEW YORK (Reuters) - Wall Street stocks fell on Friday to round out the worst week in three months as worries about high oil prices hammered energy-sensitive sectors and left investors on edge about inflation at the onset of a holiday weekend.
A lay-off can be a pretty shocking thing, but take things one step at a time. Tess Vigeland talks to personal finance expert Liz Pulliam Weston about logical things you can do to prepare for a job cut. Source: Marketplace Money | 23 May 2008 | 10:54 pm
Belgian brewer could attempt to force Anheuser-Busch to the bargaining table or strike a deal with SABMiller Source: FT.com - US homepage | 23 May 2008 | 10:44 pm
PHILADELPHIA/BRUSSELS (Reuters) - Belgian brewer InBev NV is working on a $46 billion bid for Anheuser-Busch Cos Inc, according to a source familiar with the situation.
Mexican and Brazilian stocks finish the week in the red, with equities in the region's biggest markets hit alongside Wall Street as oil prices resume their advance toward record levels.
Only three banks have failed so far in 2008. But that number is set to surge as the credit crunch slows economic growth and hammers some lenders that grew too fast during the recent real-estate boom, experts say.
Investigators at Societe Generale SA say they suspect former futures trader Jerome Kerviel was helped by an assistant to cover up massive trading positions that led to a multibillion... Source: Infocious RSS raw feed - channel BNewsBusiness | 23 May 2008 | 10:11 pm
Gap Inc. posts a 40% jump in first-quarter profit, leading some analysts to believe that the retailer’s long-awaited turnaround may finally be taking hold.
Adding to the sticker shock faced by many U.S. consumers, Kimberly-Clark Corp. announced plans Friday to hike prices on tissues, toilet paper, diapers and paper towels.
NEW YORK (Reuters) - Oil prices will likely take on more importance for the stock market next week as the summer driving season officially kicks off and as more companies are seen feeling the pinch of higher energy prices on their profit margins.
Société Générale traders and their superiors regularly flouted the rules, as part of a freewheeling culture in the bank's derivatives business, opening the way for alleged rogue trader Jérôme Kerviel to place €50bn in unauthorised trades, says a damning new report Source: FT.com - US homepage | 23 May 2008 | 9:47 pm
Stocks fell Friday morning, ahead of a three-day holiday weekend, as investors eyed higher oil and gas prices and geared up for the existing home sales report, due shortly.
Are we ever going to see oil prices go down again? How about wheat and corn? Economics editor Chris Farrell looks into commodities markets and why speculations -- and bubbles -- might be a good thing. Source: Marketplace Money | 23 May 2008 | 9:16 pm
Earlier this week, the U.S. Supreme Court upheld the rule that states can exempt their bonds from taxation. What effect does this have on investors? David Wyss, chief economist of Standard and Poor's, explains more. Source: Marketplace Money | 23 May 2008 | 9:09 pm
French fishermen disrupted shipping in the Dover Strait and blocked access to an oil refinery on Friday as anger over high fuel costs reached fishing industries in Belgium, Spain and... Source: Infocious RSS raw feed - channel BNewsBusiness | 23 May 2008 | 9:05 pm
Reuters - Oil prices will likely take on more
importance for the stock market next week as the summer driving
season officially kicks off and as more companies are seen
feeling the pinch of higher energy prices on their profit
margins.
Talks between Argentina's government and the country's farm sector, a key world grain producer, remained deadlocked Friday, with two new protests set for Sunday now looming. ... Source: Infocious RSS raw feed - channel BNewsBusiness | 23 May 2008 | 8:48 pm
The head of Dow Chemical (DOW) says that the consumer is toast. The price of crude oil and other commodities are just too high. "Inflationary pressures on the consumer through gasoline prices and food prices have reached the point where the consumer is clearly changing behavior," Andrew Liveris told Reuters. The consumer pack mule is done carrying the economy for now. Douglas A. McIntyre
The European Union's Common Agricultural Policy (CAP) farm subsidy scheme must evolve in the face of the global food crisis, French Prime Minister Francois Fillon said Friday. Source: Infocious RSS raw feed - channel BNewsBusiness | 23 May 2008 | 8:40 pm
Are you up on the RBI? We're not talking baseball, but the Recession Buy Indicator -- and what it's saying might make investors happy. Tess Vigeland talks to creator Norman Fosback about what's important to focus on. Source: Marketplace Money | 23 May 2008 | 8:21 pm
Oil prices are well off their $135 peak after investors cash in following five days of hefty price rises. Source: BBC News | Business | World Edition | 23 May 2008 | 8:20 pm
OK, so you made a few bad decisions and now you're stuck with a debt you're can't quite climb out of yet. That doesn't mean debt collectors can call you at bedtime. Ashley Milne-Tyte tells us how to fight back. Source: Marketplace Money | 23 May 2008 | 8:16 pm
A new musical invention for the masses called Beamz is following the popularity of the video games Rock Band and Guitar Hero. Sharper Image has just released the new laser music maker. Kai Ryssdal tries it out with G4's Kevin Pereira. Source: Marketplace | 23 May 2008 | 8:11 pm
When a curious Gen Y-er can do almost anything he wants, why would he subject himself to a whole lot of number crunching and cost-benefit analyses? Commentator and economics grad student Ben Bushong says these days economics is a lot more than that. Source: Marketplace | 23 May 2008 | 8:11 pm
During his 10 years as Britain's finance chief, Gordon Brown could do almost no wrong. Now, as prime minister, his reputation for economic competence is in tatters. And even some of his supporters are calling for his head. Stephen Beard reports. Source: Marketplace | 23 May 2008 | 8:11 pm
Stockbroker and business analyst David Johnson chats with host Kai Ryssdal about what happened on Wall Street this week and what may lie ahead. Source: Marketplace | 23 May 2008 | 8:11 pm
Nonprofit aid organizations and governments usually take the lead in providing assistance in times of crisis, but these days they're increasingly being helped by businesses, big and small. Stacey Vanek-Smith reports. Source: Marketplace | 23 May 2008 | 8:11 pm
When Mickey D's announced it was introducing specialty coffees, observers forecast it would suck up a good portion of the market. But the fast-food chain's coffee sales haven't gotten the caffeinated jolt many expected. Jeff Tyler reports. Source: Marketplace | 23 May 2008 | 8:11 pm
To sniff out possible safety problems with drugs and medical devices, the Food and Drug Administration is going to start mining millions of medical records. Not yours, but maybe the ones your hospital has. Nancy Marshall Genzer reports. Source: Marketplace | 23 May 2008 | 8:11 pm
The subprime crisis has sent banks and brokers fleeing from mortgage-debt investment that, for many, has turned into huge losses. Now a highly-respected bond manager is betting he'll be able to cash in -- with the government's help. Bob Moon reports. Source: Marketplace | 23 May 2008 | 8:08 pm
Think having bad credit is rough? There are some 50 million people in the U.S. who have no credit. But that doesn't mean they can't get on the record. Amy Scott tells us how one person did and how you can, too. Source: Marketplace Money | 23 May 2008 | 8:06 pm
NEW YORK (Reuters) - Oil rose on Friday on the weak U.S. dollar and ongoing long-term supply concerns that briefly pushed oil to a peak over $135 this week.
General Motors says that industrial action will cost it about $2bn (£1bn) in the three months to June. Source: BBC News | Business | World Edition | 23 May 2008 | 7:50 pm
GE (GE) General malaise and concern that conglomerate structure does not work. Falls to $30.35 from 52-week high of $42.15. GM (GM) Auto industry woes get worse with high gas. Sells down to $17.38 from 52-week high of $43.20. Continental (CAL) Airlines worse off than car companies. Slides to $12.80 from 52-week high of $40.91. US Air (LCC) Ditto on airline problems. Off to $4.20 from 52-week high of $36.81. Delta (DAL) More of the same. Falls to $5.37 from 52-week high of $21.80. UAL (UAUA) Another airline. Down to $5.37 from 52-week high of $21.80. Douglas A. McIntyre
The region's economic growth is slowing rapidly despite Germany's robust performance, with private sector economic output this month growing at the slowest pace since July 2003 Source: FT.com - US homepage | 23 May 2008 | 6:45 pm
While on an official trip to Beijing, Russia's new president has joined his Chinese counterpart Hu Jintao in saying Washington's proposed missile defence shield could upset strategic stability Source: FT.com - US homepage | 23 May 2008 | 6:16 pm
Burma has agreed to allow foreign aid workers to join relief efforts for survivors of tropical cyclone Nargis – a potential turning point in the delivery of aid to victims Source: FT.com - US homepage | 23 May 2008 | 5:59 pm
PARIS (Reuters) - Societe Generale trader Jerome Kerviel may have had internal help when he built up massive stock market bets that led to the world's worst trading scandal, a report published by the French bank said on Friday.
The backlog of unsold US homes surged to a record level in April and sales continued to decline as the dark clouds hanging over the residential property market showed few signs of lifting, a report revealed Source: FT.com - US homepage | 23 May 2008 | 5:49 pm
Behind us lay the whole of America and everything Dean and I had previously known about life, and life on the road. We had finally found the magic land at the end of the road and we never dreamed the extent of the magic.
--Jack Kerouac, On the Road.
Americans' long love affair with the automobile may finally be cooling off with gasoline near $4 a gallon.
The Department of Transportation reports today that Americans drove less in March for the first time for that month since the oil-shock year of 1979. From a year ago, the number of highway miles traveled fell 4.3 percent, or 11 billion miles. That followed a very small gain in February of 1 billion miles.
Vehicle miles have fallen a total of 17.3 billion miles since November 2006. Since that time, the price of oil has more than doubled.
The rising cost of gasoline is coupled with tighter credit and a more uncertain economy for consumers.
Citing data from MasterCard, the New York Timesnotes that Americans spent $158 billion on gasoline in the first four months of the year. Five years ago, the tab was $88 billion for the same period.
This weekend is the start of the summer driving season--a glum season this year. Americans are taking fewer trips, and many are trading in the S.U.V.'s for more fuel-efficient vehicles.
As another poet of the road said:
The highway's jammed with broken heroes on a last-chance power drive. Everybody's out on the run tonight, but there's no place left to hide.
Royal Mail is accused of "rewarding failure" after chief executive Adam Crozier received £3m last year. Source: BBC News | Business | World Edition | 23 May 2008 | 5:21 pm
The rogue trader at the heart of a scandal at Societe Generale may have had help, a report says. Source: BBC News | Business | World Edition | 23 May 2008 | 5:14 pm
The proposed closure of PPCS's Oringi and Burnside plants demonstrates once again that the meat processing industry, which is the country's second largest export sector after dairy, continues to struggle.
Sharemarket investors... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
To say Steven Spielberg's fourth Indiana Jones instalment is highly anticipated doesn't come close to describing the buzz surrounding a film that many in Hollywood hope will revive a sluggish box office.
Days after its world premiere... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
It might be the best we have, but at times democracy is an ugly beast. US elections - where the public fixation on personality overwhelms policy debate - provide a striking example of its flaws.
But advocates for benign dictatorship... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
Food commodity prices will remain high by historical standards over the next decade but ease back to well below current peaks, says a report to be published next week by the OECD and the UN Food and Agriculture Organisation.
The... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
Q.I am a contractor who last year was engaged to install the windows in a new commercial building development. I have yet to be paid and I have tried unsuccessfully to recover the money. The contract with the developer included a... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
For two years, US car-makers have told investors, creditors and workers to remain patient with a wrenching, industry-wide restructuring because a turnaround was just around the corner.
But with oil prices surging, the US auto market... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
United Airlines and three other large US carriers are considering whether to join American Airlines in charging travellers US$15 ($19) to check one bag as fuel bills soar.
UAL's United is "seriously studying" the fee, the first... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
Chief executives may be looking at the prospect of emissions trading and a carbon-constrained world with a sinking feeling, even dread.
If so Mark Franklin, the former Vector chief executive who now heads NZX's carbon market venture... Source: New Zealand Herald - Business | 23 May 2008 | 5:00 pm
The former boss of Italy's central bank is to stand trial for his role overseeing a banking takeover in 2005. Source: BBC News | Business | World Edition | 23 May 2008 | 4:51 pm
Sales of existing homes slowed less than expected in April, according to the latest reading of the sagging housing market by an industry trade group released Friday.
Palestinian PM Salam Fayyad says a business conference has raised $1.4bn of new investments in Palestinian areas. Source: BBC News | Business | World Edition | 23 May 2008 | 3:56 pm
MOSCOW (Reuters) - Microsoft Corp Chief Executive Steve Ballmer said on Friday that buying Yahoo was not a strategy in itself, and dropping the bid meant it now had $50 billion to spend on other acquisitions.
Late word is that The Weather Channel will be sold to either GE's (GE) NBCU unit, in partnership with Blackstone (BX), or to Time Warner (TWX). According to Reuters, "The winning bid is expected to range between $3.5 billion and $4 billion, but closer to $3.5 billion, one source said." Assuming that the number is a reasonable multiple of cash-flow, getting the company would be a brilliant deal. While a recession may hurt some TV revenue from VOD operations and programming like The Home Shopping Network, the need for weather information should remain constant. The same is true with online...
When the Senate Banking Committee passed a housing bill intended to limit foreclosures, panel Chairman Christopher Dodd, D-Conn., said he expected the measure could help 500,000 borrowers stay in their homes.
Sales of previously-owned US homes fell 1% in April as the housing downturn continued, figures show. Source: BBC News | Business | World Edition | 23 May 2008 | 2:40 pm
Sir Richard Branson warns that passengers on the West Coast Mainline could face more disruption. Source: BBC News | Business | World Edition | 23 May 2008 | 2:37 pm
After a whirlwind of beer deals in the last few years, speculation about a merger between InBev, the Belgian brewer of Stella Artois and Beck's, and Anheuser-Busch, the maker of Budweiser and Bud Light, has often come up. Now it may be for real.
Shares of Anheuser-Busch are up nearly 7 percent after the Financial Times' Alphaville blog reported that InBev is planning to make an offer of $65-per-share, or $46 billion. Anheuser-Busch's shares were trading at $52 before the report. There has been growing activity in Anheuser-Busch's options this week on speculation of a deal.
"If Anheuser refuses to commence friendly talks, InBev is considering a public appeal direct to the target's shareholders," Alphaville says.
Both Alphaville and the Wall Street Journal say that no decision has been taken on whether to proceed with an offer.
The Journaladds that InBev's strategy "may be to incite activist shareholders to take a position in Anheuser."
One big existing Anheuser shareholder who usually takes stakes in companies whose strategy and management he supports is Warren Buffett. His Berkshire Hathaway has a 5 percent stake. But a 40 percent premium from where the stock was in March should make Buffett happy.
Anheuser and InBev are the two of the biggest brewers in the world. But there is little geographical overlap, with Anheuser-Busch dominating the United States and InBev leading in Europe and South America.
A deal would follow the mergers of SAB and Miller and Molson and Coors. Carlsberg and Heineken will be carving up Scottish-Newcastle after a $15 billion deal earlier this year.
All brewers are struggling with rising commodity costs and slowing sales growth in mature markets like Europe and North America.
"There is a clear takeover rationale, and we've been waiting for this to happen," Jan Meijer, a beverage analyst with Theodoor Gilissen in Amsterdam, told Reuters.
You'd love to rid yourself of the junk, uh, cherished belongings you've amassed. It's not easy. If you plan to lighten up but don't think Sotheby's will auction your castoffs, consider these options.
The inventory of homes in the US is at the highest level since 1985, measured by average months on the market. According to Reuters "inventories of unsold homes rose measurably, surging 10.5 percent to 4.55 million units at the end of April." Where are the analysts who think the recession is ending? Douglas A. McIntyre
Word from the FT is that beverage leviathan InBev may make at $46 billion bid to buy Anheuser-Busch (BUD). BUD shares are up almost 7% on the news, moving above its previous 52-week high. It is hard to see what the economies of scale would be, so the price seem rich. But, owning BUD would get InBev those Clydesdales. Douglas A. McIntyre
GE (GE) has reaffirmed guidance and will sell off its appliance division. That has been not enough to keep sellers at bay. Shares in the conglomerate moved down to $30.52, a new 52-week low. While the Dow is off a bit less than 5% this year, GE is down 17%. After falling on disappointing earnings for the first quarter, GE regained some of its footing, but selling the appliance business has not been considered an adequate solution to the company's problems. Wall St. still believes that GE is in too many businesses to effectively manage them. While its infrastructure operations...
General Motors estimated that recent labour disruptions at one of its key suppliers and at several of its own plants will chop about $2.2bn from second-quarter pre-tax earnings Source: FT.com - US homepage | 23 May 2008 | 2:02 pm
Reuters - The United States is already in a
recession and it will be longer as well as deeper than many
people expect, U.S. investor Warren Buffett said in an
interview published in German magazine Der Spiegel on Saturday.
Reuters - China will issue three
licenses for high-speed third-generation mobile phone services
and called for a merger of China Unicom and Netcom, two of its
four biggest telecoms providers, in a long-awaited industry
revamp.
Reuters - Sales of previously owned U.S. homes
slipped last month and the backlog of unsold properties hit a
record high, according to data on Friday that suggested the
market's downturn still has a long way to run.
Reuters - Oil prices will likely take on more
importance for the stock market next week as the summer driving
season officially kicks off and as more companies are seen
feeling the pinch of higher energy prices on their profit
margins.
Reuters - Belgian brewer InBev NV
is working on a $46 billion bid for Anheuser-Busch
Cos Inc , according to a source familiar with the
situation.