MACAU (Reuters) - Las Vegas Sands Corp offered a peek on Thursday at a $150-million Cirque du Soleil show that will open at the Venetian Macau, the casino operator's latest high-stakes bet that it can get visitors to the Asian city to do more than gamble.
BG Group, the global oil and gas producer, is expected to win agreement today
for its takeover of Origin Energy, Australia's second biggest energy
retailer and a coal seam gas producer, after raising its bid to between A$15
and A$16 a share or A$13 billion ($£6.2 billion). Source: Latest Business News from Times Online | 29 May 2008 | 9:55 am
Sergey Vybornov, the president of Russian diamond miner Alrosa, has poured cold water on the prospect of the state-owned company floating this year. Source: Telegraph Business | 29 May 2008 | 9:50 am
U.S. stock futures struggled for direction on Thursday ahead of an expected upward revision to first-quarter growth, with updates from Costco Wholesale, H.J. Heinz and Sears Holdings expected to demonstrate the winners and losers of commodity price inflation.
Billionaire Bill Gates made an unlikely step away from his computer, to take a stake in one of Britain's less glamorous retailers. Source: Telegraph Business | 29 May 2008 | 9:45 am
It is not 1876, and GM (GM) CEO Rick Wagoner does not have long blond hair. But, Mr. Wagoner is in mortal trouble and there may not be much he can do about it. He is Custer on the great plain. GM, following a move by Ford (F), is planning to cut a lot more costs and a lot more people, poor souls lost to the ghosts of high gas costs and a faltering economy. According to The Wall Street Journal, "GM is preparing to announce further restructuring measures aimed at reducing costs and conserving cash amid a deep downturn...
TOKYO (Reuters) - Honda Motor Co's chief executive said on Thursday the Japanese automaker had been asked to pay more by a U.S. steelmaker despite a contract agreed earlier this year, and added he feared other suppliers may follow suit.
British oil and gas giant BG Group has raised its offer for Origin Energy, Australia's second-largest energy retailer, to 12.7 billion US dollars (8.16 billion euros), the Financial Times... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 9:24 am
AFP - British oil and gas giant BG Group has raised its offer for Origin Energy, Australia's second-largest energy retailer, to 12.7 billion US dollars (8.16 billion euros), the Financial Times said on Thursday.
Noel Forgeard, former co-chief executive of European aerospace group EADS, will be held in custody for another 24 hours for questioning over suspected insider trading, a source close to the Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 9:24 am
Several presentations at the All Things Digital conference this week made it clear that Microsoft (MSFT) has probably lost its appetite for buying Yahoo! (YHOO). According to Reuters, "Yahoo Inc Chief Executive Jerry Yang said on Wednesday a potential deal with Microsoft has tremendous power, but the software giant appears no longer interested in a full merger." The news may serve to drive down Yahoo!'s share price and vex the company's board and takeover king Carl Icahn who wants to have control of the portal firm. But, the news says much more about Microsoft than it does about Yahoo!. Somewhere...
Which? names more than 30 organisations which it says are using high-cost phone helplines to make money from consumers. Source: BBC News | Business | World Edition | 29 May 2008 | 9:22 am
LONDON (MarketWatch) -- Shares of Infineon Technologies AG fell as much as 10% on Thursday after Europe's second-largest chipmaker warned that it expects a wider operating loss and flat sales at its communications unit this quarter.
The UK is now in the midst of a "consumer recession", according to the chief executive of Blacks Leisure, the outdoor equipment retailer. Source: Telegraph Business | 29 May 2008 | 9:20 am
Thursday, May 29, 2008: AP source: GM plans more restructuring measures DETROIT (AP) _ General Motors Corp.'s top managers are working on additional restructuring measures to deal... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 9:17 am
AP - Orders to U.S. factories for big-ticket items besides autos and airplanes showed surprising strength in April, raising hopes that manufacturing can help the economy shake off the slumping housing market and credit crisis.
African leaders said Thursday they needed investment rather than charity, as Japan promised to double trade with the continent and help it achieve the same economic growth as Asia. Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 9:04 am
Expect higher food prices and volatile commodity markets, says a report by the UN's food organisation. Source: BBC News | Business | World Edition | 29 May 2008 | 9:04 am
South Korea's government says it will resume importing U.S. beef despite fears of mad cow disease that have led to street protests. Agriculture Minister Chung Woon-chun says the... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 9:03 am
China's devastating earthquake will mean big write-offs for China's state-run banks. For refiners, it means export profits foregone for the sake of keeping domestic supplies steady. In Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 9:02 am
Jessops, the troubled camera retailer, this morning reported a 24.7 per cent
fall in first half sales and said that trading in the last two months had
been challenging. Source: Latest Business News from Times Online | 29 May 2008 | 8:57 am
House prices have recorded their largest monthly fall since 1991, says the Nationwide building society. Source: BBC News | Business | World Edition | 29 May 2008 | 8:46 am
Blacks Leisure halved its end-of-year dividend today and warned that “radical
change” was needed to restore the camping-to-surfwear retailer’s fortunes. Source: Latest Business News from Times Online | 29 May 2008 | 8:45 am
South Korea lifts a ban on US beef imports, despite growing public protests over fears of mad cow disease. Source: BBC News | Business | World Edition | 29 May 2008 | 8:44 am
Reuters - Investors dumped safe-haven bonds in
major economies on Thursday, pushing euro zone government
borrowing costs to a nine-month high following upbeat U.S.
economic data and inflation concerns from costly oil.
LONDON (Reuters) - Investors dumped safe-haven bonds in major economies on Thursday, pushing euro zone government borrowing costs to a nine-month high following upbeat U.S. economic data and inflation concerns from costly oil.
JPMorgan Chase should complete its historic bid for Bear Stearns Thursday, effectively closing one of the more dismal chapters in the annals of Wall Street.
South Korea on Thursday lifted a ban on US beef imports, the country's Agriculture Minister Chung Woon-Chun said, despite mounting protests against the move sparked by fears of mad cow... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 8:34 am
With gas, grain, and dairy prices exploding, you'd think the biggest seller of corn flakes and Cocoa Puffs would be getting hit by rising food costs. But Wal-Mart has temporarily rolled back prices on hundreds of food items by as much as 30% this year. How? By pressuring vendors to take costs out of the supply chain.
Japanese shares jumped Thursday as sentiment turned upbeat on better- than-expected U.S. durable goods orders. The benchmark Nikkei 225 index soared 415.03 points, or 3.03 percent, to... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 8:18 am
CARLSBAD, California (Reuters) - Yahoo Inc Chief Executive Jerry Yang said on Wednesday a potential deal with Microsoft has tremendous power, but the software giant appears no longer interested in a full merger.
Rio Tinto on Thursday talked up its strengths as the metals giant rebuffs a BHP Billiton takeover bid, noting projects from Guinea to Arizona that will provide it with iron ore and nickel to satiate ravenous demand from China, India and elsewhere.
According to Reuters, Yahoo! (YHOO) says Microsoft (MSFT) is not longer anxious for a merger. Reuters said Exxon (XOM) investors voted to keep the chairman and CEO jobs together. Reuters reports that China will put in a windfall profits tax to keep prices from rising. The Fed may raise rates to keep inflation down. Clear Channel (CCU) said its buy-out would close in Q3. The Wall Street Journal writes that oil production from exporters can no match demand. The Wall Street Journal writes that Dow Chemical (DOW) increased prices of some products up to 20%. The Wall Street Journal writes...
TOKYO (Reuters) - Honda Motor Co's chief executive said on Thursday the Japanese automaker had been asked to pay more by a U.S. steelmaker despite a contract agreed earlier this year, and... Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 8:03 am
Costco Wholesale Corp., the largest U.S. warehouse retailer, reported on Thursday that fiscal third-quarter net income rose a stronger-than-expected 32% on 13% higher total sales and 8% higher same-store sales.
British house prices fell sharply in May, posting the largest monthly drop in the history of a widely followed housing index, mortgage lender Nationwide said Thursday.
French fashion house Christian Dior issued an apology Wednesday for comments made by Sharon Stone, an actress and model for the group, suggesting the Sichuan earthquake that killed at least 68,000 was “karma” for Beijing’s policies in Tibet, according to a published report.
European shares edged higher on Thursday morning as investors continued to build on the previous day’s strong rally, with miners in the lead after Rio Tinto said that it expects strong demand for metals and minerals over the next 15 years.
One of the UK’s biggest energy suppliers this morning predicted sharp rises in
household energy bills, after it said it could not commit to maintaining
prices for the rest of the year. Source: Latest Business News from Times Online | 29 May 2008 | 7:44 am
Markets in Asia were mixed. The Nikkei rose 3% to 14,124. Nikon was up 5.1% to 3310. Mazda was up 7.3% to 513. The Hang Seng rose .2% to 24,285. China Petroleum (SNP) was up 4.9% to 7.50. CNOOC was down 3.2% to 13.74. The Shanghai Composite was down 1.7% 3,401. Data from Reuters Douglas A. McIntyre
Stanley Fink said today he is retiring from the fund of fund managers he
helped shape over the past 21 years. Source: Latest Business News from Times Online | 29 May 2008 | 7:29 am
London equities rose on Thursday, helped by better-than-expected earnings from Man Group and another strong showing in the mining sector. The FTSE 100 started the session 0.6 per cent higher at 6,105.0,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:29 am
Concert giant Live Nation plans to begin selling tickets to its events directly through Facebook. The company is expected to announce today that it is launching a new Web application, or widget, for the... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
Geoffrey Raymond, the artist known for publicly displaying paintings of controversial Wall Street figures, is at it again. This time, he was stationed at the headquarters of soon-to-be extinct brokerage... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
TiVo Inc., the digital video recorder pioneer, said first-quarter profit exceeded its forecast, helped by lower marketing expenses to attract subscribers. Profit rose to $3.64 million, or 4 cents a share,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
Expedia Inc. jumped as much as 9.5 percent in Nasdaq trading on speculation Chairman Barry Diller may attempt to take the world's biggest consumer travel agency private. Expedia closed up $1.01, or 4... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
Steve Ballmer won't rule out a new bid for Yahoo!, but Microsoft's next move is proving to be as illusory as the Internet icon's planned search deal with Google. "Microsoft is no longer interested in... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
Meat eaters, rejoice - those huge price hikes in beef and pork won't happen for at least a year. Next year, though, the sky's the limit, with wild spikes likely such as those we're now feeling at gas... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
Michael Iavarone, owner of Triple Crown contender Big Brown, was fined, censured and suspended by securities regulators for unauthorized trades in 1999. Iavarone, 37, a former stockbroker, hasn't disclosed... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
Terra Firma boss Guy Hands wants to help Citigroup rid itself of the $4.9 billion in EMI debt stuck on its books. In his quarterly address to shareholders, Hands, head of the British private-equity firm... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
HELENA, Mont. - Here's some very good news about oil that the manipulators on Wall Street don't want you to know: there could be as much as 40 billion barrels of crude lying untouched in eastern Montana... Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 May 2008 | 7:26 am
NEW YORK (Reuters) - A member of the founding family of Anheuser-Busch Cos said any talks with Belgian brewer InBev NV should be based on shareholder value rather than the Busch family's legacy, the Wall Street Journal reported on Thursday.
Honda will meet growing U.S. demand for small cars while maintaining North American jobs by moving production of two bigger models from Canada to Alabama, Chief Executive Takeo Fukui said Source: Infocious RSS raw feed - channel BNewsBusiness | 29 May 2008 | 7:17 am
Scottish & Southern Energy reports 14% rise in annual profits and says it has won 700,000 new customers. Source: BBC News | Business | World Edition | 29 May 2008 | 7:08 am
The fall in UK house prices accelerated this month as a combination of economic uncertainty and disruption in the mortgage markets hit the market. Source: Telegraph Business | 29 May 2008 | 7:00 am
Reuters - U.S. hedge fund Steel Partners helped
oust most of the board of Japanese wig maker Aderans Holdings
(8170.T) on Thursday, the first time management of a Japanese
firm has been ejected under pressure from an activist fund. Source: Yahoo! News: Business | 29 May 2008 | 6:46 am
TOKYO (Reuters) - U.S. hedge fund Steel Partners helped oust most of the board of Japanese wig maker Aderans Holdings on Thursday, the first time management of a Japanese firm has been ejected under pressure from an activist fund.
Oil prices remain volatile in early trading on Thursday, but stay below recent record highs of $135 a barrel. Source: BBC News | Business | World Edition | 29 May 2008 | 6:41 am
Reuters - A member of the founding family of
Anheuser-Busch Cos said any talks with Belgian brewer
InBev NV should be based on shareholder value rather
than the Busch family's legacy, the Wall Street Journal
reported on Thursday. Source: Yahoo! News: Business | 29 May 2008 | 6:17 am
The slump in Britain's house prices accelerated in May to the fastest level
since the Nationwide began records 17 years ago. Source: Latest Business News from Times Online | 29 May 2008 | 6:16 am
Yahoo's boss says Microsoft is no longer interested in buying it but the two firms are still talking to each other. Source: BBC News | Business | World Edition | 29 May 2008 | 6:10 am
SAN FRANCISCO (MarketWatch) -- The South Korean government has denied a report on an Internet news site that North Korea's leader, Kim Jong-Il, had been assassinated, South Korean media reported Thursday.
NEW YORK (Reuters) - The H.J. Heinz Co is expected to raise its profit- and sales-growth forecasts as the company unveils its first two-year plan since a proxy fight with activist investor Nelson Peltz in 2006, the Wall Street Journal reported on Thursday.
Reuters - The H.J. Heinz Co is expected
to raise its profit- and sales-growth forecasts as the company
unveils its first two-year plan since a proxy fight with
activist investor Nelson Peltz in 2006, the Wall Street Journal
reported on Thursday.
MUNICH, Germany (Reuters) - Compliance officers at German
engineering giant Siemens and auditors at KPMG
turned a blind eye to a system of slush funds used to pay
bribes to win orders, a court witness said on Wednesday.
SAN FRANCISCO (Reuters) - Clear Channel Communications Inc. said on Wednesday that its $17.9 billion takeover by private equity funds Thomas H. Lee Partners and Bain Capital is now fully funded in escrow with the Bank of New York.
SAN FRANCISCO (Reuters) - Two Federal Reserve policy makers warned on Wednesday that interest rate increases might be needed before too long to curb inflation, even as the United States struggles with a weak economy.
Reuters - Yahoo Inc Chief Executive
Jerry Yang said on Wednesday a potential deal with Microsoft
has tremendous power, but the software giant appears no longer
interested in a full merger.
Investors increased their bets that rising oil prices would force the Federal Reserve to raise US interest rates this year, pushing the yield on the 10-year Treasury bond above 4 per cent for the first time since January Source: FT.com - US homepage | 29 May 2008 | 2:27 am
NZX today suspended share trading in Contact Energy, the country's second-largest listed company, pending a material announcement to its parent company.
Its shares were briefly halted yesterday after its 51 per cent owner, Australian... Source: New Zealand Herald - Business | 29 May 2008 | 12:30 am
More than 100 governments agreed a draft treaty to ban the use of cluster munitions in the face of strong warnings from the US to its allies not to do so Source: FT.com - US homepage | 29 May 2008 | 12:07 am
British Energy has enhanced its attraction as a bid target with full-year results that beat analysts' expectations, despite a fall in pre-tax profits of nearly a third. Source: Telegraph Business | 29 May 2008 | 12:01 am
Noel Forgeard, the high-flying former chief executive of European plane maker Airbus, was yesterday detained by French police for questioning over suspected insider trading. Source: Telegraph Business | 29 May 2008 | 12:01 am
More than a quarter of pension trustees with schemes currently in deficit fear that their plans will still be in the red in 10 years' time. Source: Telegraph Business | 29 May 2008 | 12:01 am
ExxonMobil chairman and chief executive Rex Tillerson has survived an attempt by descendants of founder John D Rockefeller to separate his dual roles at the oil giant. Source: Telegraph Business | 29 May 2008 | 12:01 am
Qinetiq, the defence equipment company privatised by the Government in early 2006, said robot technology and growth in the US helped it to increase underlying profits by 20pc in the year to the end of March. Source: Telegraph Business | 29 May 2008 | 12:01 am
The Treasury is enjoying a windfall as oil soars but taxation policy may have knock-on effects, writes Edmund Conway. Source: Telegraph Business | 29 May 2008 | 12:01 am
Peter Marshall, former managing director of Access Brokerage, has been sent to jail for three years for fraud.
Marshall, 62, a sickness beneficiary from Upper Hutt, was responsible for Access Brokerage when it collapsed, owing... Source: New Zealand Herald - Business | 29 May 2008 | 12:00 am
The US files a complaint with the World Trade Organisation over European tariffs on hi-tech items. Source: BBC News | Business | World Edition | 28 May 2008 | 11:20 pm
The chief executives of United Airlines and US Airways will meet on Thursday to discuss the carriers' potential merger agreement, people familiar with their plans said Source: FT.com - US homepage | 28 May 2008 | 11:13 pm
Tribune Company is attempting to sell off another business – this time, its Tribune Media Services unit, which distributes news and entertainment listings – to boost its short-term liquidity Source: FT.com - US homepage | 28 May 2008 | 11:10 pm
Microsoft is signalling the end of the mouse with its latest operating system,
which aims to build on the success of its rival Apple's iPhone touch screen. Source: Latest Business News from Times Online | 28 May 2008 | 11:02 pm
Bank of America has reversed course on a controversial plan to appoint David Sambol, a senior executive from Countrywide, to run its mortgage business Source: FT.com - US homepage | 28 May 2008 | 11:02 pm
Premier League clubs are spending more of their cash on wages than ever, football finances report says. Source: BBC News | Business | World Edition | 28 May 2008 | 11:01 pm
Bill Gates, one of the world's richest men, has taken a stake in Carpetright,
the laminate flooring and carpet specialist run by Lord Harris of Peckham. Source: Latest Business News from Times Online | 28 May 2008 | 11:00 pm
Noël Forgeard, once the most powerful man in Europe's aerospace industry,
suffered a stinging humiliation yesterday as he was detained by police in
connection with the insider trading allegations that have rocked EADS, the
aerospace and defence giant. Source: Latest Business News from Times Online | 28 May 2008 | 11:00 pm
Apple is poised to announce it will start selling films from four major
Hollywood studios for download in the UK as part of its iTunes internet
service at prices on a par with DVDs. Source: Latest Business News from Times Online | 28 May 2008 | 11:00 pm
Efforts to tackle the risk surrounding privately negotiated credit derivatives will take a step forward when 11 of the world's biggest investment banks announce the creation of the first central clearer for the opaque contracts by September Source: FT.com - US homepage | 28 May 2008 | 10:58 pm
The sharemarket initially headed for its eighth consecutive down day after it opened slightly weaker today but after 20 minutes tentatively was in the positive.
The NZSX-50 index was up 3.9 points to 3550.9 at 10.20am. The seven... Source: New Zealand Herald - Business | 28 May 2008 | 10:45 pm
Orders for US durable goods fell less than forecast in April, a signal that the economy is recovering, data shows. Source: BBC News | Business | World Edition | 28 May 2008 | 10:15 pm
Liberty Lane Acquisition Corp. was going to be the first real special purpose acquisition company, or SPAC or blank check company, from Goldman Sachs Group Inc. (NYSE: GS). The key word in there is "WAS." After the close of trading today, Liberty Lane announced that it decided it would not proceed with its planned IPO at this time. You can guess the reason: due to market conditions. We covered Liberty Lane as "Goldman Sachs' first real SPAC IPO" in full detail on its filing date. The flow of SPAC IPO's has dried up significantly, and some are even closing and...
SAN FRANCISCO - Two Federal Reserve policy-makers today warned that interest rate increases might be needed before too long to curb inflation, even as the United States struggles with a weak economy.
The remarks solidified expectations... Source: New Zealand Herald - Business | 28 May 2008 | 10:00 pm
The financial services industry is reaping benefits from the turmoil in the credit markets as corporate treasurers, burned by illiquid investments, increasingly hand over their spare cash to professional money managers Source: FT.com - US homepage | 28 May 2008 | 9:25 pm
Consumer confidence in the New Zealand economy plunged 18 points from the second half of 2007 to the first half of 2008.
This was the biggest drop in consumer confidence of any country in the world monitored, with the United States... Source: New Zealand Herald - Business | 28 May 2008 | 9:15 pm
California wines will soon be showing the benefits of Kiwi-based technology.
Wine Technology Marlborough (WTM), the New Zealand temperature control equipment maker, has now established a foothold in the US and has contracts in... Source: New Zealand Herald - Business | 28 May 2008 | 9:00 pm
Wall Street stocks climbed for a second session, after a stop-start day of trading that featured bad news from regional banks, a lurch in oil prices that boosted related stocks but trimmed advances elsewhere and a steady rally in materials Source: FT.com - US homepage | 28 May 2008 | 8:41 pm
Fisher & Paykel Appliances today blamed the high dollar for a 14 per cent fall in its March net profit to $54.2 million.
Normalised profit, taking out the one-off cost of restructuring, was $65.5m, up 4.3 per cent, which the company... Source: New Zealand Herald - Business | 28 May 2008 | 8:10 pm
Your reality is always created twice, first in your imagination, then in real life.
Many inspired people know how to tap into this phenomenon. In the third part of our nine part series: "What's Your Secret to Success?" we unpack... Source: New Zealand Herald - Business | 28 May 2008 | 8:00 pm
ExxonMobil beat back a high-profile measure seeking to create an independent chairman, a move that had been aimed to pressure the world's largest listed oil company to invest more heavily in alternative energy Source: FT.com - US homepage | 28 May 2008 | 7:55 pm
He's gone from the penthouse to the outhouse, as the saying goes - and now he's got the penthouse in his sights again.
Former bankrupt and convicted fraudster Alan Bond has rejoined the ranks of Australia's wealthiest people, after... Source: New Zealand Herald - Business | 28 May 2008 | 7:50 pm
Ambac (ABK) Still dogged by concerns about losses and inadequate capital. Falls to $2.88 from 52-week high of $92.08. US Airways (LCC) Concerns about cost of oil get worse. Drops to $4.06 from 52-week high of $36.81. American International Group (AIG) Analyst concerns that new capital raise will fall short. Sells off to $34.53 from 52-week high of $72.96. Wachovia (WB) Worries about the bank's balance sheet increase. Skids to $23.13 from 52-week high of $54.95. Favrille (FVRL) Down a second day after drug trial failure. Hits bottom at $.14 from 52-week high of $4.08. Huntington Bancshares (HBAN) Market concerns...
Air New Zealand has downgraded its profit forecasts for the second time in just over a month, warning that high fuel costs will see earnings fall below $200 million for the year ending June 30 - a drop of more than 25 per cent.
The... Source: New Zealand Herald - Business | 28 May 2008 | 7:40 pm
The group that has emerged as the frontrunner in the bidding for cable television's Weather Channel has assembled a financing package that shows how dramatically the buy-out world has changed since the onset of the global credit crisis Source: FT.com - US homepage | 28 May 2008 | 6:27 pm
Is this credit crisis so daunting that no one wants to work in Washington to help solve it?
It certainly seems that way. The Securities and Exchange Commission, which normally has five people running the show, has had only three commissioners for many months, and one of those has announced his intent to leave.
And now the normally seven-member board of governors of the Federal Reserve is about to be whittled down to four.
Fed governor Frederic Mishkin, who has been with the central bank since President Bush appointed him in 2006, announced plans to step down from his post on August 31. He will return to academia as an economics professor at Columbia University's graduate school of business.
His term was expected to end in 2014. The Wall Street Journalcited Mishkin acquaintances that said the economist could no longer do without his extra income from book publishing and consulting that he had when he was a professor. The cost of maintaining his homes in New York and Washington may have played a role as well, they said.
In all likelihood, the Fed board will remain three members short of a full house until next year, when a new president is sworn into office. President Bush nominated two replacements for the vacant slots last year, but Senate banking chairman Christopher Dodd has delayed voting on them.
If the Senate indeed chooses to continue delaying the vote until after Mishkin leaves in August, the central bank will operate with fewer than five governors for the first time since 1936.
Over at the S.E.C., President Bush has nominated the requisite two Democrats and one Republican to fill out the commission. The Senate is expected to make things whole again soon, according to Senator Dodd. "I want to get people in place and start making decisions. Too much is at stake with this housing-mortgage crisis, the economic crisis," Dodd told Bloomberg Television earlier this week. "The S.E.C. needs to function. We've got some huge issues out there."
Of course, there are huge issues at the Federal Reserve, as well. Too bad politics has to get in the way of solving them.
The 10-Year Treasury Note has crossed back above the 4.00% mark today. According to our data, the last time rates flirted with 4.00% on the 10-year treasury note was on May 14, 2008 when we saw a 3.99% yield. There were a few times in February when rates went over 3.90% as well, but this is the first time since January 2, 2008 that rates on the 10-year T-Note were above 4.00%. It looks like the low yield on the 10-Year so far in 2008 was 3.29% on March 17. Last summer before the rate cuts started coming into the...
This summer's next big blockbuster: you, if you're willing to foot the bill. Cash Peters explains how to get your life story -- or something like it -- immortalized on film. Source: Marketplace | 28 May 2008 | 5:34 pm
Supply and demand are all well and good, but are overeager investors really to blame for skyrocketing gas prices? Commentator David Frum gives his take on the speculation about speculators. Source: Marketplace | 28 May 2008 | 5:34 pm
You can plan and research all you want, but sometimes things just happen they way they're going to happen. Kai Ryssdal talks to physicist Leonard Mlodinow about living in a world ruled by chance. Source: Marketplace | 28 May 2008 | 5:34 pm
Rising commodity prices are providing endless opportunities for speculators, but as Steve Henn reports, some investors are losing the stomach for one volatile nursery rhyme commodity. Source: Marketplace | 28 May 2008 | 5:34 pm
The smaller of the two actors unions, AFTRA, reached a tentative agreement with producers today, but as Jeff Tyler explains, the real question is whether the larger SAG will do the same. Source: Marketplace | 28 May 2008 | 5:34 pm
With U.S. demand poised to decrease, have we seen the peak of gas prices? Kai asks Marketplace's Jeremy Hobson. Source: Marketplace | 28 May 2008 | 5:34 pm
Blaming rising energy prices, Dow Chemical announced plans to raise prices on its products this weekend. Marketplace's Dan Grech explains how others may be tempted to follow suit. Source: Marketplace | 28 May 2008 | 5:34 pm
Chairman of General Electric Co. (NYSE: GE), Jeff Immelt, has made another vote of confidence in the stock today. In transactions listed with a trade date of TODAY May 28, 2008, the filing with the SEC shows that Immelt purchased some 115,000 shares at prices between $30.59 to $30.66. At a mid-point, this represents roughly $3.52 Million worth of stock. As a reminder, he purchased shares earlier before the company dropped the ball on its last earnings report. After that, we came up with a mid-range valuation for the company that is higher than current levels. But it also was...
Being related, distantly, to the founder of the company which became Exxon (XOM), did not help the Rockefellers. They were at the front of a group of shareholders trying to separate the chairman and CEO roles at the oil company. They also wanted XOM to put more money into alternative energies. The complacent old men who sit on the board and run the company would have nothing to do with it and fought like lions. The proposal was defeated with only 39.5% of shareholders voting in favor of pulling apart the two jobs. The Rockefellers will be left to go...
The Rockefeller name does not have the clout it once did.
Despite a very public campaign on its behalf by descendants of John D. Rockefeller, the founder of the company that became Exxon Mobil, a resolution to split the jobs of chief executive and chairman at the oil giant failed to win approval from shareholders.
Last month, a great-granddaughter and a great-great-grandson of John D., who created Standard Oil in 1870, announced that a majority of family members had decided to take a public stand for the first time in support of four shareholder resolutions on global climate change and corporate governance.
It was the resolution calling for the chairman's role to be independent from that of the chief executive that was seen as having the best chance of success. Last year, a similar resolution received 40 percent of the vote.
This year, however, the tally was down slightly, at 39.5 percent. Rex Tillerson has been C.E.O. and chairman of Exxon Mobil since January 2006.
Earlier, Rob Cox on Breakingviews.com said that the problem was that "this best practice of corporate governance has been wrapped in a confusing package."
"The resolution is just one of four that Rockefeller family members are petitioning other shareholders to embrace. The others are environmental proposals that management, quite rightly, views as hostile to their day jobs."
On Wednesday morning we'll get to see earnings out of upscale warehouse retailer Costco Wholesale Corporation (NASDAQ: COST). The estimates from First Call are $0.65 EPS on $16.3 Billion in revenues. Next quarter estimates are $1.01 EPS and $22.44 Billion in revenues. Costco is not on a typical retail fiscal year as its next quarter August is the fiscal year, and estimates are $2.99 EPS on $71.44 Billion in revenues. In case the company gives any estimates for next year, First Call has fiscal August 2009 at $3.43 EPS and $77.87. This represents an expectation for growth next year of...
Barry Diller often goes against the grain, building up an internet conglomerate at a time when conglomerates are unpopular and then deciding to dismantle what he had built. (That company, IAC/InterActive, is in the process of breaking itself into five pieces.)
So that may make it easier to believe the market rumors that Diller may be planning to take his other venture, travel-services company Expedia, private.
Diller, however, has dismissed the rumors, telling a Reuters reporter: "I am so suspect of current markets and the hedge funds and momentum selling/buying. I think there is a plot behind everything."
Buyouts have become rare since the credit crunch, and Diller is certainly aware of how difficult obtaining financing has become: Expedia was forced to scale back a planned buyback of 117 million shares by 80 percent last summer.
Still, if there is a C.E.O. with the will to make it happen, it would be Barry Diller. (Read Duff McDonald's profile of Diller here.)
Shares of Expedia were up 7 percent on rumors of a more than $4 billion buyout by IAC. After the Diller comments, the shares ended up with a 4 percent gain. Expedia options were also very active in trading.
Such activity was seen in early April, when the rumor was that Google might be looking to make a bid.
Despite concerns that the weak economy might slow travel bookings, Expedia reported a robust first quarter earlier this month, with earnings rising 48 percent. It has strong cash flow, which would help an acquisition
Diller acquired 51 percent of Expedia for $1.5 billion in 2002. The company was spun off from IAC i 2005.
Hey, if you were in the business of manufacturing products that some of your biggest customers could no longer afford to operate, you'd be scrambling for options, too.
The Berlin Air Show kicked off yesterday, and not surprisingly, much of the focus is on alternative fuels. The show takes place every two years and is a big deal: over 1,000 exhibitors from 37 countries gather at Berlin's Schönefeld Airport to show off planes, cut deals, and talk about the state of the aerospace business.
Yesterday the two commercial jet giants took the stage to talk up some of their latest alternative fuel innovations.
Boeing got things started by showing off a demonstrator plane that can fly on batteries and fuel cells. While executives at Boeing say "a manned airplane can maintain a straight level flight with fuel cells as the only power source," you're not going to see one painted in the Delta Airlines' colors anytime soon. The one-seat demonstrator is in early stages of development, and Boeing is realistic about fuel cell technology's long term potential, saying "it does not envision fuel cells providing primary power for large passenger airplanes." This has to be kind of a bummer for a company that derives over half its revenue selling large passenger airplanes.
Airbus' presentation was less glitzy but maybe more relevant in the short and medium term. The company rolled out a demonstrator version of its popular A320 that uses fuel cells to power some of the planes steering system. In contrast to Boeing's restrained tone, Airbus said that it saw "great potential in fuel-cell applications. Airbus announced at a different event earlier in the month that it was also testing an electric taxi system that would cut fuel use while planes are taxiing to the runway for takeoff.
KLM Royal Dutch Airlines used the conference to report that it's joining the increasing crowded We're Testing Alternative Fuels Club. KLM has signed a deal with AlgaeLink to provide alternative fuel for test flights beginning this fall. AlgaeLink is building plants in the Netherlands and Spain to manufacture an algae-kerosene/jet fuel mix, though KLM says that in the big scheme of things, it wants its entire fleet powered by pure plant-based oils.
When the big plane manufacturers and airlines start talking up their alternative fuel plans, it's easy to roll your eyes and chalk the whole thing up as an exercise in public relations (we've done it). But with fuel at $130 a barrel and expected to cross the $175 to $200 mark by year's end, Boeing, Airbus, and the airlines that fly their products must see the writing on the wall.
When airlines like American are cut 11 percent of their flights because it is cheaper to park planes than to fly them, it is time to so something. Fast.
They whispered that you were confused when you pulled out of the bidding for Yahoo back on May 3. But if you had bulled ahead beyond $33 per share, then those same critics would have said that you allowed your obsessive side to cause you to overpay.
You were trying to do a rational deal with an irrational target, and you got fed up with the whole passive-aggressive circus. So what? Ignore it all, and do not let the events thus far sour your ability to make good, objective decisions about how to move forward.
The reality is that you are in a far better spot than you have been during this entire process. The minute Carl Icahn walked into the center ring, you were no longer the scariest animal in the tent, which changes things considerably.
Now you not only have the opportunity to get the deal done on agreeable terms, but also to restore your reputation as a passionate, decisive guy who ultimately gets what he wants.
Be Ballmer. Understand that you will be second-guessed no matter which strategic path you take or how adroitly you travel it. Each path has its own set of advantages, but each also has its own set of troubling implications, which is what will be scrutinized. So trust your instincts about what's best for your business over the long haul, and then act with conviction. Do so with the same nutty energy that inspired Bill to hand the keys over to you in the first place. (Though I would suggest this would not be a time for updating your Monkey Dance, at least in public.)
Re-center in the new reality. Understand that the other parties now actually need you to buy all of Yahoo. Jerry Yang and Roy Bostock need you to do it to avoid having Carl pluck their appendages off one at a time. Carl needs you to do it so he can get a complete pelt to hang on the wall. And Bill Miller, T. Boone Pickens and all the other big shareholders need you to do it to salvage the paper premium they had already banked, at least emotionally.
Keep reinforcing the idea that landing Yahoo was not a strategy in itself, but simply a unique means of taking a huge leap forward in creating the scale required to make your strategy happen. That will continue to invite cynicism in the short term, but it will be essential in contextualizing future moves.
Understand the potential Yahoo-Google alliance for what it is, and do not let it spook you. If you do acquire Yahoo, there are plenty of ways to undo that agreement, particularly with the antitrust implications. If you don't acquire Yahoo, then the competitive reality will allow you to turn the alliance into a full-blown regulatory Waterloo for Google.
Should Google proceed with that search alliance, I'll write you another Rescue Memo dedicated specifically to how you can make them really wish they hadn't. I like those guys, but they still don't understand that domination has its downsides.
Some have said that you were probably too eager to re-engage after Icahn gave notice, and they are probably right. So, you must make your negotiations for the smaller deal go as slowly as possible.
Why? Because "winning" actually means nothing more than securing the assets you specifically desire at an acceptable price. You can do that one of two ways—either buy the whole thing and then pare it down, or start with a smaller deal and expand from there. The former would be far more pragmatic, given the lack of shareholder patience for anything short of the deal you offered originally. In fact, in this environment, the latter looks downright unachievable.
Thus, you must...
Lock publicly at $33. Send Bostock and the rest of the world a short statement that reads something like this.
Redmond, Washington — Microsoft confirmed today that it would embrace the opportunity to acquire Yahoo for $33 per share.
"It was worth $33 before, and it's still worth $33 today," said C.E.O. Steve Ballmer. "We think it's a good, fair deal that will allow both partners to become competitive again in search. And yes, just as before, we are not willing to go higher. Anyone who thinks we're bluffing has a very short memory."
By doing that, you confirm that you've got consistent, logical criteria for the deal. You establish yourself as a non-variable within a very complicated collection of decision-makers, forcing the other players to maneuver in response.
You also fully shift the burden of action to Carl, who knows exactly how to shift it to the Yahoo board.
If you want to lock at $34 instead, you'll need to offer a clear explanation of what additional value has been discovered since you walked.
Keep going. Even before you close the deal, you must demonstrate that you have a clear plan for actually doing something with the new scale in search.
Immediately disclose which Yahoo assets you'll divest, either because they're non-strategic and will reduce the cost of the deal, or because you anticipate resistance from the regulators.
Make it clear that achieving scale was the first part of the search advertising strategy, and the second part of the strategy is using that scale to offer a differentiated alternative to Google.
If you're going to augment your new scale through a deal with AOL, do it quickly so that it will be seen as the next step in a planned series. If you don't make that happen within a year, it will instead be negatively judged as an attempt to fix an insufficient Yahoo transaction.
In the overall game, I'm assuming that maximizing your profits from your search assets is far less important to you than spoiling Google's cash engine. As the challenger in search, that gives you plenty of options on how to take additional share.
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.
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."
AFP - British oil and gas giant BG Group has raised its offer for Origin Energy, Australia's second-largest energy retailer, to 12.7 billion US dollars (8.16 billion euros), the Financial Times said on Thursday.
AP - Orders to U.S. factories for big-ticket items besides autos and airplanes showed surprising strength in April, raising hopes that manufacturing can help the economy shake off the slumping housing market and credit crisis.
Reuters - Investors dumped safe-haven bonds in
major economies on Thursday, pushing euro zone government
borrowing costs to a nine-month high following upbeat U.S.
economic data and inflation concerns from costly oil.
Reuters - The H.J. Heinz Co is expected
to raise its profit- and sales-growth forecasts as the company
unveils its first two-year plan since a proxy fight with
activist investor Nelson Peltz in 2006, the Wall Street Journal
reported on Thursday.
Reuters - Yahoo Inc Chief Executive
Jerry Yang said on Wednesday a potential deal with Microsoft
has tremendous power, but the software giant appears no longer
interested in a full merger.