Gordon Brown has called on the world's biggest oil producers to increase their dialogue with the biggest consumers of crude and remove any barriers to increasing future production. Source: Telegraph Business | 28 May 2008 | 2:52 pm
NEW YORK (Reuters) - Dow Chemical Co , the biggest U.S. chemical manufacturer, said on Wednesday it would hike prices for all its products by up to 20 percent next month, the latest signal that escalating energy prices were stoking inflation.
UK Prime Minister Gordon Brown is set to meet oil industry leaders amid controversy over soaring fuel prices. Source: BBC News | Business | World Edition | 28 May 2008 | 2:31 pm
CHICAGO (Reuters) - American Airlines will end service between New York's JFK International Airport and London's Stansted Airport as part of a plan to cut capacity to better cope with soaring fuel prices, the airline's parent, AMR Corp , said on Wednesday.
European shares advance strongly on Wednesday as a pullback in oil prices boosted broader market sentiment and broker comments prompted solid gains for financial and technology firms.
BA will not complete the transfer of all long-haul flights at Heathrow to Terminal 5 until the end of October. Source: BBC News | Business | World Edition | 28 May 2008 | 2:23 pm
A stark retreat in the energy sector failed to derail gains in London on Wednesday, with British Airways recovering lost ground as oil traded around $127 a barrel.
Cable & Wireless has made an audacious approach to its smaller rival Thus as it seeks to consolidate the UK telecoms market. Source: Telegraph Business | 28 May 2008 | 2:20 pm
There's a price to pay for the wireless networks we take for granted. And this year's run of cell tower accidents - five workers falling to their death in the space of 12 days - is extraordinary.
Orders for big-ticket manufactured goods excluding transportation rose unexpectedly last month in a sign that manufacturers are continuing to resist the slowdown in the broader US economy Source: FT.com - US homepage | 28 May 2008 | 2:16 pm
Reuters - Microsoft Corp's attempts to
strike a deal with Yahoo Inc is an "accelerator" of
its online strategy, but not the sole answer to advancing its
Internet vision, the company's top software executive said on
Wednesday.
SEATTLE (Reuters) - Microsoft Corp's attempts to strike a deal with Yahoo Inc is an "accelerator" of its online strategy, but not the sole answer to advancing its Internet vision, the company's top software executive said on Wednesday.
(Reuters) - J.P. Morgan Securities cut its profit view on three large U.S. investment banks and suggested investors avoid the brokerage sector as earnings estimate continue to appear "too bullish" in the second half of 2008 and 2009.
NEW YORK (MarketWatch) -- Treasurys fall for a second day, pushing 10-year note yields to the highest since January, after the Commerce department said orders for U.S.-made durable goods last month fell less than economists expected.
Software giant Microsoft gives a sneak peek of its next operating system, Windows 7, at a conference. Source: BBC News | Business | World Edition | 28 May 2008 | 2:07 pm
NEW YORK (MarketWatch) -- Gold futures slid for a second day on Wednesday, with a firmer dollar and a sharp drop in crude oil prices fueling profit-taking in the precious metal.
Energy stocks dipped on Wednesday as oil prices cooled off, with petroleum and natural gas shares extending losses for the second straight day this week.
Short sellers TD Ameritrade Holding Corp.(NASDAQ: AMTD), E*TRADE Financial Corp. (NASDAQ: ETFC), and Charles Schwab Corporation (NASDAQ: SCHW) look like a mixed bag on the surface, but the trends in two of the three are going up as far as short selling. Some might even call it alarming. TD Ameritrade Holding Corp.(NASDAQ: AMTD) Date Short Interest Change Days 05/15/2008 7,524,826 -13.7% 2.80 04/30/2008 8,718,910 4.63% 2.52 TD Ameritrade was the only one of the major online brokerage firms that didn't see a rise in its short interest. E*TRADE Financial Corp. (NASDAQ: ETFC) Date Short Interest Change Days 05/15/2008 111,402,617 6.58%...
UPS said Wednesday that it is working on an agreement to provide transportation in its air network for all of DHL Express U.S.'s deferred and international package volume in the U.S.
BONN, Germany (Reuters) - German mail group Deutsche Post AG plans to partner with rival United Parcel Service Inc (UPS) as part of a $2 billion restructuring of its loss-making DHL Express business in the United States.
Cable & Wireless (C&W), the international telecoms carrier, confirmed
today that it had made a bid approach for its rival Thus after a 12 per cent
jump in the share price of the Scottish business telecoms company. Source: Latest Business News from Times Online | 28 May 2008 | 1:55 pm
Stocks rose Wednesday morning as investors welcomed a stronger dollar, falling oil prices and a report showing a smaller-than-expected drop in manufactured goods.
Dow Chemical Co. will raise product prices by up to 20 percent almost immediately to offset the soaring cost of energy and raw materials, and the CEO of the chemical giant lashed out... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 1:51 pm
The American Federation of Television and Radio Artists says it has agreed to a tentative deal with Hollywood studios on a new three-year contract. The union said early Wednesday that... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 1:48 pm
AP - Orders to U.S. factories for big-ticket manufactured goods fell by a smaller-than-anticipated amount in April with many sectors outside of transportation showing unexpected strength. Source: Yahoo! News: Business | 28 May 2008 | 1:38 pm
Question: With the economy being as bad as it is and no sign of getting any better, I feel people are reluctant to invest or even unable to save. Do you agree? With keeping that in mind, what do you think people look for in a financial adviser?
Dan Berger, a 26-year-old aide to New York Congressman Charles Rangel, knew he wanted to get an MBA but, he says now, he was overwhelmed by the number and variety of programs available: "I knew I needed to gather a lot of information before choosing a school, but I really didn't know where to start."
Stocks are higher in early trading after a government report showed orders for big ticket items declined less than expected last month. A drop in oil prices Wednesday also appears to be Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 1:34 pm
Cable and Wireless, the UK-based telecoms group, on Wednesday confirmed it had made a preliminary approach to Thus, sending shares in its smaller rival soaring. C&W warned, however, that there was... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 1:20 pm
Wall Street stocks were set to add modestly to recent gains on Wednesday morning, as oil slipped back further, offering some respite to energy sensitive sectors and the broader US economy Source: FT.com - US homepage | 28 May 2008 | 1:10 pm
The Detroit News says that Ford (F) will cut another 12% of its salaried workforce. Who will keep the books and design the cars? There must be some point at which Ford cannot continue to take people out of its operations without abandoning essential functions. If the current round of lay-offs are people who were "fat" why are they leaving so late in Ford's failing turnaround? Mulally should have stayed at Boeing (BA). Douglas A. McIntyre
Reuters - New orders for long-lasting
manufactured goods slipped 0.5 percent in April as demand for
civilian aircraft plunged, but a key barometer of business
investment spending posted a surprisingly sharp gain, a
government report showed on Wednesday.
WASHINGTON (Reuters) - New orders for long-lasting manufactured goods slipped 0.5 percent in April as demand for civilian aircraft plunged, but a key barometer of business investment spending posted a surprisingly sharp gain, a government report showed on Wednesday.
Bonn, May 28 - German mail and logistics group Deutsche Post plans to partner with rival UPS and spend up to $2bn to restructure its loss-making DHL Express business in the United States.The US unit would... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 12:59 pm
German mail and logistics group Deutsche Post plans to partner with rival UPS and spend up to $2bn to restructure its loss-making DHL Express business in the United States Source: FT.com - US homepage | 28 May 2008 | 12:59 pm
Bahrain's Gulf Air has ordered 35 Airbus medium- and long-haul aircraft in a deal worth five billion dollars (3.2 billion euros), it was announced here Wednesday. The order... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:56 pm
DETROIT (Reuters) - Ford Motor Co plans to cut its U.S. salaried work force by up to 12 percent after its turnaround plan stalled because of the downturn in the U.S. economy, the Detroit News reported on Wednesday.
Reuters - Ford Motor Co plans to cut its
U.S. salaried work force by up to 12 percent after its
turnaround plan stalled because of the downturn in the U.S.
economy, the Detroit News reported on Wednesday.
NEW YORK (Reuters) - Merger talks between United Airlines and US Airways Group Inc have slowed and a deal is not expected in time for review by the Bush administration, sources said late on Tuesday.
Dow Chemical says it's raising product prices by up to 20 percent to offset the soaring cost of energy and raw materials. The Midland-based chemical giant said Wednesday the increases... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:48 pm
CHICAGO (Reuters) - Coca-Cola Co , the world's largest soft-drink company, on Wednesday said it is confident in its global business outlook for the second quarter and full year, citing strength in its international operations.
UPS, the world's largest shipping carrier, says it is working toward an agreement with DHL's U.S. Express unit to carry air freight for some DHL units within the United States. United... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:43 pm
Reuters - Dow Chemical Co said on
Wednesday it would hike prices on all its products by up to 20
percent starting June 1 because of the sharp rise in the costs
of energy, raw materials and transportation.
Reuters - Teen apparel retailer American Eagle
Outfitters Inc said on Wednesday quarterly net profit
fell, hurt by greater markdowns resulting from
lower-than-expected sales.
A former co-chief executive of Airbus parent EADS was detained Wednesday in connection with an investigation into alleged insider trading, a French judicial official said. Noel... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:39 pm
Wall Street is headed for a higher open after the Commerce Department said orders for big-ticket items fell less than expected last month. The Commerce Department reported Wednesday... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:38 pm
Mattel, the company behind Barbie dolls, is claiming the rights to the popular Bratz dolls in a court case. Source: BBC News | Business | World Edition | 28 May 2008 | 12:36 pm
Orders to U.S. factories for big-ticket manufactured goods fell by a smaller-than-anticipated amount in April with many sectors outside of transportation showing unexpected strength. ... Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:35 pm
Customer complaints to the independent financial adjudicator rose by nearly a
third last year to a record high. Source: Latest Business News from Times Online | 28 May 2008 | 12:33 pm
The worst may have been seen in many of the US apparel makers. At least that is what Polo Ralph Lauren Corporation (NYSE: RL) is trying to communicate on its own operations. The company posted earnings this morning of $104 million or $1.00 EPS, up from $73 million and $0.68 EPS in the same quarter in 2007. This was on a revenue rise of 20% to $1.24 Billion for the quarter. First Call had estimates of $0.65 EPS on $1.15 Billion in revenues. It may be hard to compare these numbers directly to estimates because these numbers are inclusive of...
Steadily climbing energy prices pushed German inflation higher in May, regional data showed on Wednesday, sending a gloomy signal regarding hopes for a pick-up in consumption. Source: Infocious RSS raw feed - channel BNewsBusiness | 28 May 2008 | 12:33 pm
It is tempting to think that there was a conspiracy to bring down Bear Stearns.
Wall Street is a cutthroat place anyway, and Bear was never the most popular. People still remembered how Bear walked away when the rest of Wall Street organized a bailout of the tottering hedge fund Long-Term Capital Management in 1998.
So was there an orchestrated effort to bring down Bear? Or was the selling and pulling out of trades and loans in March simply the result of a complete loss of confidence in a firm that was so closely tied to mortgages and whose credibility had eroded over months? The Securities and Exchange Commission is looking at the question as part of a larger inquiry into the collapse of Bear, Kate Kelly of the Wall Street Journalreports.
Bear will turn over documents to the S.E.C. showing how firms like Goldman Sachs, Citadel Investment Group, and Paulson & Co. cut their exposure to the firm in the days before its collapse, the Journal says.
The commission will examine whether any trading activity was coordinated or whether there was any sign of possible market manipulation.
In early March, the Journal says, "Goldman, Citadel, and Paulson exited about 400 trades where Bear Stearns was the trading partner, more than any other firms did, the data show."
At an April 3 hearing of the Senate Banking Committee into the collapse of Bear, Christopher Cox, the chairman of the S.E.C., told lawmakers that the commission would aggressively pursue an investigation into possible market manipulation.
"Your hopes will be, I think, met and exceeded with respect to the agency's response to these concerns," Cox said.
The investigation, then, is a political necessity for the S.E.C. But it still smacks of a fishing expedition.
For a year, it was no secret that Bear was vulnerable to the collapse of the subprime market because of its relatively small size, its huge leverage, and its exposure to mortgages. Other Wall Street firms shored up their capital and aggressively reduced risk. Bear, as the Wall Street Journaldetailed on Tuesday, had a number of opportunities but did too little too late.
It seems that the producers may be getting sick and tired of not being able to pass exponentially rising costs on to customers. This morning, The Dow Chemical Company (NYSE: DOW) has announced that it will raise the price "OF ALL OF ITS PRODUCTS" by up to 20% as of June 1, 2008. The actual amount of the raise is to be dependent upon exposure to rising costs in energy, feedstock, and transportation. It will also review all terms to all customers. The company noted that energy and feedstock prices are up 42% year over year. In fact, Dow noted...
Indonesia says it will quit the oil producers' body Opec as it is no longer a net exporter of the commodity. Source: BBC News | Business | World Edition | 28 May 2008 | 12:14 pm
Economic unease in Europe takes its toll on mobile phone sales, but emerging markets support the industry's growth. Source: BBC News | Business | World Edition | 28 May 2008 | 12:13 pm
Gordon Brown has called on the world's biggest oil producers to increase their dialogue with the biggest consumers of crude and remove any barriers to increasing future production. Source: Telegraph Business | 28 May 2008 | 12:13 pm
SMG-owned Virgin Radio could be sold to Absolute Radio as a going concern but
without the Virgin brand, as it emerged that Sir Richard Branson is
considering relaunching Virgin Radio in Britain. Source: Latest Business News from Times Online | 28 May 2008 | 12:09 pm
Plans for increased North Sea oil production were outlined by the Government
today as ministers gave the green light for two new field development. Source: Latest Business News from Times Online | 28 May 2008 | 11:58 am
This year's surge in the price of crude oil is hitting consumers across the world, helping to drive global inflation and is now racing up the political agenda as we use up more and more of the world's limited supplies. Source: Telegraph Business | 28 May 2008 | 11:35 am
Qantas on Wednesday warned that escalating oil prices would increase its fuel bill by more than A$2bn in its next financial year, forcing the airline to abandon some routes and cut jobs in an effort to... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 11:34 am
The next generation of personal computers will allow owners to manipulate
objects on the screen by touching the surface directly with their fingers,
Microsoft has said. Source: Latest Business News from Times Online | 28 May 2008 | 11:32 am
The new wave of airline consolidation has been grounded.
After Delta and Northwesthooked up last month, hopes ran high that it would trigger a series of deals that would reduce the number of passenger seats and cut costs.
Also on Portfolio.com: Who Takes the Hit? The sky is falling—on the heads of business travelers. Changes in the Air Here are the busiest routes for the nation's big hub-and-spoke airlines.
But that outcome looks increasingly unlikely as talks between United Airlines and US Airways have hit a wall.
Micheline Maynard and Andrew Ross Sorkin of the New York Timesreport that there has been virtually no contact between the airlines in recent days as United's board and chief executive, Glenn Tilton, have raised questions about a merger.
Failing to reach an agreement before Memorial Day, the Times says, means that there is not enough time to have merger-friendly Bush administration regulators review it. The uncertainty over who may be in the White House next year may further delay other airline deals.
The argument for mergers, with oil prices higher than $125 a barrel, is obvious: Airlines cannot survive unless they can cut costs and raise fares. And the new Open Skies Treaty will introduce new competition from European airlines. The U.S. industry could lose as much as $9 billion this year.
Other deals or alliances are still possible. United has been talking with Continental Airlines, which, in turn, has been talking about a possible alliance with American Airlines and British Airways, Reuters has reported.
For its part, American, the biggest U.S. airline until the Delta-Northwest merger is completed, has apparently decided that it cannot wait for a merger or alliance.
Last week, American said that it would cut its domestic capacity by as much as 12 percent and will start charging a $15 fee on passengers' checked bags. It will also raise fees for a range of other services, from reservation services to transporting pets and oversize bags.
American may be the new model for an increasingly desperate industry. Douglas McIntyre on 24/7 Wall St. says: "In a merger, that work of making a deal and going though the time-consuming effort of combining two companies could take months. No one in the industry has that kind of time. At least if a carrier goes it alone, it can make decision about how to bleed itself quickly."
The government of Ehud Olmert, Israel's prime minister, was plunged into fresh crisis, after his biggest coalition ally called on him to either step aside temporarily or resign for good over a corruption investigation Source: FT.com - US homepage | 28 May 2008 | 11:30 am
The Benetton family could join a consortium of 30 Italian companies that are
preparing to make a rescue bid for Alitalia, the troubled Italian state
airline. Source: Latest Business News from Times Online | 28 May 2008 | 11:11 am
This year's surge in the price of crude oil is hitting consumers across the world, helping to drive global inflation and is now racing up the political agenda as we use up more and more of the world's limited supplies. Source: Telegraph Business | 28 May 2008 | 11:08 am
These are ten of the analyst calls we are focusing on this Wednesday morning: Alaska Communications (NASDAQ: ALSK) Raised to Buy at Banc Of America Securities. Amylin Pharmaceuticals (NASDAQ: AMLN) Raised to Equalweight at Lehman Brothers. Cemex S.A.B. de C.V. (NYSE: CX) Cut to Underweight from Equal Weight at Morgan Stanley. Frontier Oil (NYSE: FTO) Raised to Peer Perform at Bear Stearns. Nvidia (NASDAQ: NVDA) Raised to Market-Outperform at JMP Securities. OmniVision Tech (NASDAQ: OVTI) downgraded to Perform at Oppenheimer. Peabody Energy (NYSE: BTU) Raised to Buy from Neutral at UBS. Quest Software (NASDAQ: QSFT) Raised to Buy from Neutral...
This year's surge in the price of crude oil is hitting consumers across the world, helping to drive global inflation and is now racing up the political agenda as we use up more and more of the world's limited supplies. Source: Telegraph Business | 28 May 2008 | 10:55 am
European equities rose on Wednesday after upgrades lifted a number of high-profile stocks, while a rally for banking stocks offset weakness in the energy sector.By midday, the FTSE Eurofirst 300 was 0... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 10:48 am
Indonesia would probably like to remain a member of OPEC, but it is pointless. The country is no longer a net exporter of oil. Needs within the country's growing infrastructure and increasing use of cars and trucks are keeping more and more crude use "in country". So, Indonesia will leave OPEC this year. Indonesia has also done next to nothing to upgrade its oil drilling and refining facilities. That is almost certainly short-sighted, but the country does not have the political and business organizations to solve the problems. Call it a microcosm. As crude us increases in countries which have...
There is one key thing that the U.S. Dollar weakness could bring about if the dollar stays where it is. If it continues its slide next year even though our interest rate futures are calling for more than a 100-basis point rise, our land and our companies may become targets for foreigners buying assets on the cheap. Some deals are already rumored and some would be easy to come into the fold as well. The major U.S. companies failed to rise to a call for arms by buying up every bit it could after the Asian Contagion in 1998 as...
The yen fell to a one-month low against the dollar and the euro on Wednesday as falling oil prices supported equities and boosted investor appetite for risk.Analysts said this prompted investors to abandon... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 10:35 am
This year's surge in the price of crude oil is hitting consumers across the world, helping to drive global inflation and racing up the political agenda as we use up more and more of the world's limited supplies. Source: Telegraph Business | 28 May 2008 | 10:28 am
London equities rose on Wednesday, with a measure of bid speculation in the insurance sector providing the momentumBut a quartet of FTSE 100 constituents traded without further rights to their latest dividend... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 10:26 am
Indonesia said it would withdraw from Opec at the end of this year because, as a net oil importer, its interests were no longer served by being a member of the oil producers' cartel Source: FT.com - US homepage | 28 May 2008 | 10:21 am
Reports are that the heated merger talks between United (UAUA) and US Air (LCC) have gone away. Both airlines are probably still talking to AMR (AMR), Continental (CAL), and any other puddle-jumper with a single-engine plane that they can find. The airline industry got another dose of electric-shock therapy yesterday when JetBlue (JBLU) said it would defer taking delivery of a number of new Airbus jets. If the airline doesn't make it, the delivery could be dodged altogether. Managements at United and US Air have probably decided that thousand of hours talking about mergers will not save them. With oil...
This year's surge in the price of crude oil is hitting consumers across the world, helping to drive global inflation and racing up the political agenda as we use up more and more of the world's limited supplies Source: Telegraph Business | 28 May 2008 | 10:00 am
Oil prices continued to slide on Wednesday amid concerns that demand from Asia could be hit if governments across the region are forced to curtail subsidies for domestic fuel supplies due to rising global... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 9:52 am
Microsoft (MSFT) has started to show-off a touch-screen function for its next version of Windows. That would allow a PC to function sort of like an Apple (AAPL) iPhone, as The Wall Street Journal points out. It also shows that the next versions of the Redmond OS may not be as hard to use as the current one, Vista. The whole touch-screen deal really has absolutely nothing to do with the future of Windows. Microsoft knows that such features are for children and people who have never seen a keyboard. The real problem facing Windows 7, as the next OS...
Asia-Pacific stocks slipped on Wednesday as the decline in oil prices weighed on resource-related companies across the region, where investors chose to ignore Wall Street's gains.Oil recently traded slightly... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 9:37 am
This year's surge in the price of crude oil is hitting consumers across the world, helping to drive global inflation and is now racing up the political agenda as we use up more and more of the world's limited supplies. Source: Telegraph Business | 28 May 2008 | 9:35 am
A crucial measure of business spending declined less than expected in April, a sign that businesses may be breathing easier about the economy, although orders of cars and computer equipment still dipped,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 9:33 am
For the last few years, I have been an evangelist for renting. Ive told my sister-in-law and her husband that they would be crazy to abandon their reasonably priced one-bedroom rental in Brooklyn. When... Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 May 2008 | 9:33 am
GE (GE) plans to cut its water consumption across the company by 20% between now and 2012. According to Bloomberg "In addition to the first-ever water reduction pledge, Fairfield, Connecticut-based GE also said it intends to have $25 billion in sales of environmentally friendlier products and services by 2010." All of this is part of the company's inane ``ecomagination'' campaign to be more environmentally friendly. Black bears prosper while GE's shareholders suffer. Whether GE likes it or not, the PR around its multitude of programs which have little or nothing to do with getting its share price up annoys Wall...
Temasek, Singapore’s state investment company, is targeting Latin America and
the fast-growing economies of Brazil and Mexico in the latest phase of its
global expansion. Source: Latest Business News from Times Online | 28 May 2008 | 9:29 am
Debt-laden Italian airline Alitalia says it made a loss in 2007 and needs an urgent injection of funds to survive. Source: BBC News | Business | World Edition | 28 May 2008 | 9:10 am
British Energy Group, the UK nuclear power producer that is considering takeover offers, said full-year profit fell 28pc because of production shutdowns. Source: Telegraph Business | 28 May 2008 | 8:54 am
Luxury goods firm Burberry reports a 25% rise in annual profits helped by strong demand for its handbags. Source: BBC News | Business | World Edition | 28 May 2008 | 8:53 am
SABMiller has quietly indicated to Belgium's InBev that it would formally consider a bid pitched at £15 a share or more, valuing the business at £22.6bn, FT Alphaville has learned. Source: FT.com - US homepage | 28 May 2008 | 8:20 am
In what would be the first Japanese military deployment in China since World War Two, China has sounded out Tokyo about sending military planes to the quake zone Source: FT.com - US homepage | 28 May 2008 | 8:10 am
Qinetiq, the UK defence contractor, said today it was eyeing more acquisitions
in the US after seeing a surge in demand for a bomb disposal robot used by
the US military in Iraq and Afghanistan. Source: Latest Business News from Times Online | 28 May 2008 | 7:58 am
Airport operator BAA says higher security and maintenance costs meant it made a quarterly loss. Source: BBC News | Business | World Edition | 28 May 2008 | 7:30 am
Burberry plans a big expansion into the luxury shoe market after defying the
doom and gloom on the high street to post a 14 per cent jump in annual
pre-tax profits. Source: Latest Business News from Times Online | 28 May 2008 | 7:00 am
Nissan is to open another factory in China as it seeks to extend its recent growth in the expanding market. Source: BBC News | Business | World Edition | 28 May 2008 | 7:00 am
Underlying profits at British Energy, the UK's main nuclear operator, slumped
by more than a quarter last year after problems with its ageing power
stations continued to weigh on its performance. Source: Latest Business News from Times Online | 28 May 2008 | 6:39 am
The New Zealand dollar pulled back from three-week highs against major currencies as traders took profits today.
At the close of the local session, the dollar was buying US78.91c, slightly down on its US79c close yesterday.
It... Source: New Zealand Herald - Business | 28 May 2008 | 5:30 am
The sharemarket closed down for the seventh consecutive session as pessimism about the economy depressed sentiment.
The NZSX-50 index closed down 4.33 points at 3547.01, its lowest level in six weeks.
No 3 stock Fletcher Building... Source: New Zealand Herald - Business | 28 May 2008 | 5:28 am
Soaring fuel prices have taken another bite out of Air New Zealand profits, as the airline moves quickly towards embracing bio-fuels for its planes.
It aims to convert some of its domestic fleet to using the greener fuel source... Source: New Zealand Herald - Business | 28 May 2008 | 4:42 am
Auckland based Belgrave Finance today called in receivers, becoming the 20th finance company failure in the last two years.
The property development financier which owes just over $22 million to about 1000 debenture investors said... Source: New Zealand Herald - Business | 28 May 2008 | 3:13 am
Auckland Airport is pointing to this year's early Easter as a major factor in last month's passenger statistics.
Total international passenger numbers were down 4.4 per cent, compared to a year earlier, to 518,795 in April. The... Source: New Zealand Herald - Business | 28 May 2008 | 3:00 am
Origin Energy Ltd, Australia's second largest power retailer, has entered a trading halt pending a decision regarding a A$12.9 billion ($15.8 billion) takeover approach from BG Group.
Origin is the 51.4 per cent owner of Contact... Source: New Zealand Herald - Business | 28 May 2008 | 1:50 am
Guinness Peat Group says it is highly confident its partial offer for Tower will be successful and the offer will not be extended beyond the current closing date of June 19.
GPG said today that it had received advice from certain... Source: New Zealand Herald - Business | 28 May 2008 | 1:30 am
Low hydro lakes and rising winter power demand have pushed Contact Energy to fire up one of its mothballed generators at the New Plymouth power station.
The power station was closed in December last year after asbestos was found... Source: New Zealand Herald - Business | 28 May 2008 | 1:00 am
Debenture investors owed $110 million by Lombard Finance and Investments will lose more than half of their money, receivers PricewaterhouseCoopers said yesterday.
Lombard last month became the 17th finance company to hit the wall... Source: New Zealand Herald - Business | 28 May 2008 | 12:00 am
The New Zealand sharemarket's slide continued in early trading today.
The NZSX-50 index has dropped for the past six trading days, and around 10.10am today the benchmark NZSX-50 index was down 3.91 points to 3547.43, having dropped... Source: New Zealand Herald - Business | 27 May 2008 | 11:10 pm
A rift is developing among large US investment banks over whether continued access to a special Federal Reserve borrowing facility is worth the expected trade-off in further regulation by the central bank Source: FT.com - US homepage | 27 May 2008 | 10:30 pm
The SEC has stepped up its investigation into DB Zwirn, seeking information about how the $5bn hedge fund valued some of its assets, according to people familiar with the probe Source: FT.com - US homepage | 27 May 2008 | 10:30 pm
UBS has told members of its former private banking team responsible for rich US clients not to travel to America, and has also made lawyers available to the more than 50 bankers involved Source: FT.com - US homepage | 27 May 2008 | 10:30 pm
Put something popular up on YouTube? Might be time to find an agent. Kai visits United Talent Agency's online division in Hollywood to learn about digital representation. Source: Marketplace | 27 May 2008 | 8:45 pm
Fighting poverty is good, but according to commentator and economist Edward Miguel, well-targeted foreign aid can accomplish much, much more in the poorest parts of the world. Source: Marketplace | 27 May 2008 | 8:45 pm
China has redirected its manufacturing power to aid those affected by this month's earthquake. Scott Tong takes us to a tent factory in Shanghai working overtime to shelter victims. Source: Marketplace | 27 May 2008 | 8:45 pm
At Exxon's annual meeting tomorrow, 15 proposals are up for a vote, including one from the founding Rockefellers. Kai talks with law professor Robert Hillman about shareholder activism. Source: Marketplace | 27 May 2008 | 8:44 pm
The Hughes Institute is funding 56 scientists to conduct research of their own choosing. Jeremy Hobson reports what this new funding strategy could mean for biomedical research. Source: Marketplace | 27 May 2008 | 8:30 pm
In the past, Borders partnered with Amazon for online sales. Today, they've set out on their own, offering direct sales via a new website. Ashley Milne-Tyte takes a look. Source: Marketplace | 27 May 2008 | 8:17 pm
Separate reports today revealed that while home sales are on the rise, prices continue to dive. Amy Scott explains why the housing market can't seem to get past the bad news. Source: Marketplace | 27 May 2008 | 8:05 pm
The Motley Fool - 1. Pay your bills on time. More than one-third of your credit score -- the most popular being Fair Isaac's FICO score -- is based on your bill-paying habits. Late payments can have brutal consequences, particularly those that are 90 days or more past due. While recent changes to the FICO calculations make isolated incidents a bit less damaging, 90-day late payments can be just as troubling for picky lenders as a bankruptcy filing, a tax lien, a collection, a judgment, or a repossession. Source: Yahoo! News: Business | 27 May 2008 | 7:34 pm
As if a housing slump to rival that of the Depression wasn't enough.
Real estate brokers received a fresh blow today as their trade group, the National Association of Realtors, reached a settlement with the Department of Justice that allows competition from Internet-based home brokers.
The pact settles an antitrust lawsuit that the government brought in September 2005. The suit accused the Realtors of blocking access to its multiple listing service, the comprehensive list of residences for sale.
With home buyers now more likely to visit websites to hunt for homes than to cruise neighborhoods looking for "for sale" signs, the Justice Department contended that restricting use of the database undercut competition from Internet-based brokers. Such discount competitors typically charge fees lower than the usual 6 percent broker commission.
Last year, a report by the Justice Department and the Federal Trade Commission found that limiting access to the Multiple Listing Service (M.L.S.) hindered home buyers from taking advantage of such cost savings. Of the 1,000 M.L.S.'s in the United States, 800 are affiliated with the association.
"When there is unfettered competition from brokers with innovative and efficient approaches to the residential real estate market, consumers are likely to receive better services and pay lower commission rates," said Deborah A. Garza, deputy assistant attorney general for the department's antitrust division.
The Realtors association, which has 1.2 million members, issued a statement calling the settlement a win for both sides, noting that it did not admit any wrongdoing and will not pay a fine. A trial had been set to start in July, but the settlement, which has to be approved by a federal judge, averts that.
"Thanks to Realtors, consumers can access detailed information about millions of properties for sale across the country," Richard Gaylord, the association's president, said in a statement.
In recent months, the name Harry Macklowe has become synonymous with the roiling fortunes of New York City's high-stakes real estate market. Now that those fortunes have turned sour, a different Macklowe—his son William—is stepping forward to take over.
At the peak of the market last year, Macklowe senior, 71, shelled out a record $7 billion to buy seven Manhattan office buildings from Blackstone Group, risking a real estate empire that included the prized General Motors Building.
In one fell swoop, Macklowe's audacity doubled his holdings to 12 million square feet of commercial office space spread out over 13 skyscrapers, and it allowed father and son to practically set the prices in the elite commercial corridor of New York City real estate that is home to the largest concentration of hedge funds in the world.
But when the credit markets froze, Macklowe found himself unable to refinance billions in bridge loans that came due in February, forcing him to put the G.M. Building, and a number of other buildings, up for sale to avoid financial ruin.
Now with a deal to sell the trophy tower to a group led by Mort Zuckerman of Boston Properties for $2.9 billion, it's William Macklowe, 40, who has stepped into the spotlight. The longtime president of Macklowe Properties announced his father would step down as chairman in the coming weeks and he would take the reins.
In many respects, the elder Macklowe has already begun to fade. It's been William who has explained the deal in interviews to the New York Times and Wall Street Journal—though he is done speaking with the press and "wants the media frenzy to be at an end so he can rebuild his company," a spokesman said today.
Associates of the Macklowes say that William played a key role in negotiating the sale of the G.M. Building, which made it only more apparent that "Bill has come into his own."
"I think it's time for a generational shift," says Jonathan Mechanic, chairman of the real estate department at the law firm of Fried Frank, and one of the attorneys who helped the Macklowes hash out the G.M. sale. "Bill has been president for some time, and it's the next chapter for this company which has been a major player in New York and will continue to be a major player in New York."
Though the Macklowes reportedly put up just $50 million of their own money and borrowed the balance to buy the E.O.P. properties, it was Harry Macklowe's decision to take out a $1.2 billion bridge equity loan from the Fortress Investment Group that most imperiled his family dynasty.
As collateral, Macklowe offered the G.M. Building and a "personal recourse" loan that put his personal assets at risk in the case of default. The younger Macklowe told the Wall Street Journal he was strongly opposed to the deal, and began pushing almost immediately to try and reduce their risk.
"You should always be opposed to recourse," he said.
When the credit markets froze and the Macklowes defaulted in February, it was the younger Macklowe who hashed out a deal with Fortress that allowed for a partial payment—with the proceeds from a building—and a crucial four-month extension, Mechanic says.
"He played a key role in getting the extension, persuading people that we had the wherewithal to affect this kind of transaction, and we needed the requisite time to do it," Mechanic says. "Consequently we were able to make a deal with the lending group and with Boston Properties." Going forward, William Macklowe is likely to bring a more cautious approach to the business than his father, "having had the experience of the ups and downs," Mechanic says.
Barry Hersh, associate professor at N.Y.U. Real Estate Institute, describes the older Macklowe as "an old-line kind of a swashbuckler who liked pushing the limits."
The younger Macklowe, Hersh says, "seems to be less anxious to push it to the ultimate limits. That's fairly clear."
But there's little question Macklowe's style will continue to be shaped by that of his father, who made a name for himself by coming up with innovative ways to develop properties and increase their value.
After attending New York University, William Macklowe worked as appraisal analyst in the real estate finance department of Manufacturers Hanover Trust Company, and according to some reports, did a stint in banking at Salomon Brothers.
He went to work for his father in his mid-20s, where he "learned from one of the most talented real estate professionals in our time."
"He has all the genius and the vision the Macklowe hereditary traits, and is perhaps a little more cautious having had the experience of the ups and down."
He's also "got a good sense of humor," Mechanic says.
"That's very helpful sometimes when you're in a tense situation, to lighten the mood," he says. "Obviously we've just come through one."
The housing downturn is showing no signs of abating.
In March, home prices in 20 metropolitan cities fell by 14 percent from a year earlier, according to the latest S&P/Case Shiller indexes. It was the biggest drop the index has recorded in its history and the 15th consecutive decline since January 2007.
The prices fell by 2.2 percent from February to March.
The decline was across the board, with only one city, Charlotte, N.C., posting a slight gain in home prices year over year.
Las Vegas, Miami, and Phoenix saw the biggest declines, with indexes falling 25.9 percent, 24.6 percent, and 23 percent, respectively. In just the month of March, Las Vegas prices shed 4.4 percent of their value.
According to the Commerce Department, sales of new homes unexpectedly rose by 3.3 percent during April. But it revised downward its figures for the prior month, showing purchases of new homes in March at their lowest level since 1991.
How low will they go? Yale economist Robert Shiller, who established the indexes with fellow economist Karl Case, believes this current downturn could exceed the housing bust of the Great Depression.
Former Federal Reserve chairman Alan Greenspan, who many believe is partly to blame for failing to slow the inflation of the housing bubble earlier this decade, told the Financial Times that he believes there is still greater than a 50 percent chance for a recession in the U.S. economy.
He also said he believes that prices will fall another 10 percent from their February levels, for a peak-to-trough decline of 25 percent.
Reuters - Stocks turned negative shortly after
the market opened on Wednesday, dragged lower by a decline in
financial shares.
Reuters - Microsoft Corp's attempts to
strike a deal with Yahoo Inc is an "accelerator" of
its online strategy, but not the sole answer to advancing its
Internet vision, the company's top software executive said on
Wednesday.
Reuters - New orders for long-lasting
manufactured goods slipped 0.5 percent in April as demand for
civilian aircraft plunged, but a key barometer of business
investment spending posted a surprisingly sharp gain, a
government report showed on Wednesday.
Reuters - Ford Motor Co plans to cut its
U.S. salaried work force by up to 12 percent after its
turnaround plan stalled because of the downturn in the U.S.
economy, the Detroit News reported on Wednesday.
Reuters - Dow Chemical Co said on
Wednesday it would hike prices on all its products by up to 20
percent starting June 1 because of the sharp rise in the costs
of energy, raw materials and transportation.
Reuters - Teen apparel retailer American Eagle
Outfitters Inc said on Wednesday quarterly net profit
fell, hurt by greater markdowns resulting from
lower-than-expected sales.