World Business News Headlines for July 4, 2008

Merrill said in talks to sell Bloomberg stake back to mayor

LONDON (MarketWatch) -- Merrill Lynch is in talks to sell its minority stake in financial news group Bloomberg L.P. back to New York City Mayor Michael Bloomberg, according to a published report on Friday.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 1:45 pm

Former Austrian bank boss jailed

The former head of one of Austria's biggest banks, Bawag, is convicted of fraud charges by a court in Vienna.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 1:40 pm

Tax credit to save UBS from hefty loss

ZURICH (Reuters) - Battered Swiss bank UBS said on Friday it should be saved from another hefty loss in the second quarter by a large tax credit, giving a much-needed though short-lived boost to its share price.

Source: Reuters: Business News | 4 Jul 2008 | 1:19 pm

Kimmitt confident in economic fundamentals (Reuters)

Reuters - Deputy U.S. Treasury Secretary Robert Kimmitt said on Friday he was confident about the United States' economic fundamentals in the long term despite a current rough patch and was quite optimistic about the future.

Source: Yahoo! News: Business | 4 Jul 2008 | 1:18 pm

Kimmitt confident in economic fundamentals (Reuters)

Source: Yahoo! News: Business | 4 Jul 2008 | 1:18 pm

Kimmitt confident in economic fundamentals

BERLIN (Reuters) - Deputy U.S. Treasury Secretary Robert Kimmitt said on Friday he was confident about the United States' economic fundamentals in the long term despite a current rough patch and was quite optimistic about the future.

Source: Reuters: Business News | 4 Jul 2008 | 1:18 pm

FINANCIAL OUTLOOK 2008: SECOND HALF

Nationwide: House prices will fall further this year.
Source: Telegraph Business | 4 Jul 2008 | 1:11 pm

FINANCIAL OUTLOOK 2008: SECOND HALF

Nationwide: House prices will fall further this year.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 1:11 pm

Bradford & Bingley shares tumble to rights issue price

Texas Pacific Group has walked away from a deal to inject cash into Bradford & Bingley, forcing the stricken bank to fall back on investors for an emergency cash injection.
Source: Telegraph Business | 4 Jul 2008 | 1:10 pm

Bradford & Bingley shares tumble to rights issue price

National speed limit pushed as gas saver

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 1:09 pm

NewsWatch: Banks, miners pull Europe lower; Swiss lender UBS rises

European shares drifted lower on Friday in subdued trade as banks declined and miners also lost ground, though UBS rallied after the Swiss bank quelled fears that it would have to make another major fund raising effort.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 1:00 pm

UK investors rescue B&B cash call

Bradford & Bingley confirms that its plan to raise £400m has been rescued by a group of UK investors.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 12:57 pm

BHP last to sign iron ore price pact with Baosteel

SYDNEY/HONG KONG (Reuters) - BHP Billiton Ltd/Plc has matched takeover target Rio Tinto Ltd/Plc with a near doubling in contract iron ore prices, ending months of talks and speculation it may get more.

Source: Reuters: Business News | 4 Jul 2008 | 12:53 pm

Call for review of motoring taxes

The RAC Foundation is calling on the Treasury for a root and branch review of motoring taxation in the UK
Source: BBC News | Business | World Edition | 4 Jul 2008 | 12:50 pm

Hunting for oil villains

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 12:35 pm

European banks need to raise up to $141 billion: Goldman (Reuters)

Reuters - Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros ($94 to $141 billion), or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently.

Source: Yahoo! News: Business | 4 Jul 2008 | 12:32 pm

European banks need to raise up to $141 billion: Goldman

(Reuters) - Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros ($94 to $141 billion), or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently.

Source: Reuters: Business News | 4 Jul 2008 | 12:32 pm

This Week's BioHealth & Biotech Top Stories

We saw another exciting week full of news for key developments in drug stocks, biotech stocks, medical device stocks, and other companies involved in various aspects of health care and medicine. Below are some of the stock tickers we covered over at BioHealthInvestor.com this week: STOCK TICKERS: ABT, BSX, MDT, JNJ, SRDX, ANPI, BAYRY, MAXY, AMGN, CRA, INGN, CELG, MRK, SNY, GSK, AKRX, ARYX This week we saw another FDA Approval in stents as Abbott's (NYSE: ABT) XIENCE drug-eluting coronary stent was approved for marketing. While this is causing a resurgence in stents, this space is about to become highly...

Source: 24/7 Wall St. | 4 Jul 2008 | 12:31 pm

London shares drop amid retail gloom

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 12:17 pm

Kimmitt confident in U.S. economic fundamentals

M&S house broker cuts profit forecast by 20%

Shares in Marks & Spencer (M&S) slumped by 6 per cent today after Citigroup, one of the retailer's two joint brokers, cut its full-year profits forecast by 20 per cent.
Source: Latest Business News from Times Online | 4 Jul 2008 | 12:16 pm

Japan's Nikkei index extends losses

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 12:15 pm

Gas scales record $4.10 a gallon

The high cost of gas is one thing Americans won't be celebrating on July 4.

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 12:14 pm

Gas prices hit another high for holiday weekend

Fireworks aren't the only thing skyrocketing on this Fourth of July. The price of gas has hit another all-time high. The AAA fuel-gauge report puts the national average price of a gallon
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 12:09 pm

European shares reverse gains

European equities fell on Friday as investors pocketed gains won a day earlier, mulled more bad news for the banking sector and began looking to next week in the absence of Wall Street...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 12:07 pm

Baugur investigates switch to UK

Hamleys owner - Icelandic investment group Baugur - says it is examining ways to relocate to the UK.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 11:56 am

World stocks slip again (Reuters)

Reuters - World stocks slipped back towards this week's five-month low on Friday as steadying oil prices failed to erase concerns about slowing economic growth and rising inflation, and as banking stocks came under renewed pressure.

Source: Yahoo! News: Business | 4 Jul 2008 | 11:51 am

World stocks slip again

LONDON (Reuters) - World stocks slipped back towards this week's five-month low on Friday as steadying oil prices failed to erase concerns about slowing economic growth and rising inflation, and as banking stocks came under renewed pressure.

Source: Reuters: Business News | 4 Jul 2008 | 11:51 am

Europe raises interest rate to 7-year high

The European Central Bank defied deepening gloom over the eurozone's prospects and intense political pressure yesterday to raise interest rates to their highest level for almost seven years.
Source: Latest Business News from Times Online | 4 Jul 2008 | 11:45 am

Morgan Stanley buys stake in Hainan resort project

HONG KONG (MarketWatch) -- Morgan Stanley will partner with mainland property firm Agile Property to develop a holiday resort in Hainan Island, seeking to benefit from the growing tourism boom in China's southernmost province.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 11:43 am

Weak dollar is global concern: EU's Barroso (Reuters)

Reuters - The dollar's fall is a source of global concern and the European Union wants a better balance between the U.S. unit and other major currencies, European Commission President Jose Manuel Barroso said on Friday.

Source: Yahoo! News: Business | 4 Jul 2008 | 11:42 am

Weak dollar is global concern: EU's Barroso

BRUSSELS (Reuters) - The dollar's fall is a source of global concern and the European Union wants a better balance between the U.S. unit and other major currencies, European Commission President Jose Manuel Barroso said on Friday.

Source: Reuters: Business News | 4 Jul 2008 | 11:42 am

Weak dollar is global concern: EU's Barroso

London Markets: Marks & Spencer touches multi-year lows as London drops

Shares in retailer Marks & Spencer fell to a level not seen since late 2001 on Friday, amid continuing gloom about how retailers are going to cope as growth in the U.K. economy slows.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 11:41 am

Starbucks (SBUX): The Mess Gets Worse

Twelve thousand souls are losing their jobs at Starbucks (SBUX), mostly because Howard Schultz let incompetents run his empire while he was occupied elsewhere. It will always be open to debate whether things would have been different if he had stayed on as CEO, instead of returning recently when things at the coffee company were getting bad. In a superb article in The New York Times, the paper analyzes what may have been the worst decision by Starbucks executives. In the surge of rapid expansion in the US, they put many of their stores in the wrong places. According to...

Source: 24/7 Wall St. | 4 Jul 2008 | 11:37 am

Currencies: Euro flat after post-ECB dip

The dollar held steady but took no new ground against major rivals in Friday’s Asian trading, with major currency pairs expected to remain range-bound since U.S. markets are closed for a holiday.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 11:19 am

Stocks tumble

High oil prices fail to bolster global shares
Source: BBC News | Business | World Edition | 4 Jul 2008 | 11:12 am

UBS confirms facing further write-downs

UBS on Friday confirmed it faced further heavy write-downs on exposures to troubled US credits, meaning earnings for the second quarter would be "at or slightly below" break even. Europe's biggest casualty...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 11:12 am

John Lewis sees sales tumble as much as 25pc

Department store operator John Lewis Partnership saw sales slump by 8.3pc over the week to June 28, with some of its large out-of-town shops seeing sales fall by as much as 25pc.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 11:12 am

John Lewis sees sales tumble as much as 25pc

UBS confirms facing further write-downs

The Swiss bank, Europe's biggest casualty of the US subprime crisis, confirmed it faced further heavy write-downs on exposures to troubled US credits, meaning second-quarter would be 'at or slightly below' break-even
Source: FT.com - US homepage | 4 Jul 2008 | 11:12 am

Austrian bankers convicted of massive fraud

An Austrian court convicted Friday the former chief executive of BAWAG bank and eight others of gambling away 1.72 billion euros (2.7 billion dollars) in speculative investments in the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 11:06 am

Oil falls below $145, awaits Iran response

LONDON (Reuters) - Oil dropped below $145 a barrel on Friday, but was still within sight of record highs reached in the previous session when traders bought into the market ahead of a...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 11:03 am

Oil falls below $145, awaits Iran response

Source: Reuters: Business News | 4 Jul 2008 | 11:03 am

Media Digest 7/4/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Goldman Sachs said European banks may have to raise another 60 billion to 90 billion euors to reach an aggregate Tier I ratio of 9 percent. Reuters reports that Caterpillar (CAT) sees China sales doubling by 2010. Reuters writes that the market will get its near-term direction from oil and GE (GE) earnings. The Wall Street Journal writes that UBS (UBS) expects a small Q2 loss. The Wall Street Journal writes that BHP Billiton (BHP) and China have reached an agreement on iron ore prices. The Wall Street Journal writes that assets that the Fed took from...

Source: 24/7 Wall St. | 4 Jul 2008 | 10:58 am

Body of Taiwan securities firm chief found in sea

TAIPEI (Reuters) - The embattled chairman of a major Taiwan securities firm was found dead in waters close to the island on Friday morning, the firm said, startling the financial community and sending the company's shares tumbling.

Source: Reuters: Business News | 4 Jul 2008 | 10:57 am

B&B drags banks lower in London

London equities fell on Friday as investors once more looked nervously at the banking sector after news of major changes to capital raising plans. The FTSE 100 lost 0.5 per cent to 5,449.4 in mid-session...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 10:56 am

Oil prices fall after record highs

Oil prices fell Friday on profit-taking, a day after surging to record highs on the back of a weak dollar and concerns over tight supplies, traders said. Brent North Sea oil...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 10:52 am

UBS expects to roughly break even, doesn't need more cash

Swiss banking giant UBS said Friday that it expects to roughly break even in the second quarter, after a 3 billion Swiss franc ($2.93 billion) tax credit helped offset further write-downs, and added it doesn’t need to raise more capital.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 10:46 am

Utah moves to 4-day workweek

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 10:44 am

Asia And Europe Markets 7/4/2008 (ALU)(DB)(BCS)(CN)(SNP)

Market in Asia were mixed The Nikkei fell .2% to 13,238. KDDI was down 2.7% to 632000. Mazda was up 4.6% to 550. The Hang Seng was up .7% to 21,424. China Netcom (CN) was up to 22.30. China Petroleum (SNP) was up 2.8% to 7.03. The Shanghai Composite was down 1.2% to 2,670. At 6.40 AM, the FTSE was down .6% to 5,446. Barclays (BCS) was down to 282.75. British Airways was down 4.6% to 199.3. The DAXX was .5% to 6,324. Commerzbank was off 2.5% to 19.11. Deutsche Bank (DB) was off 1.4% to 55.04. The CAC 40...

Source: 24/7 Wall St. | 4 Jul 2008 | 10:44 am

Record oil prices top next week's G8 agenda

Record high oil prices are set to dominate the agenda at the G8 summit which takes place in Japan’s northern island of Hokkaido on Monday and Tuesday.
Source: Latest Business News from Times Online | 4 Jul 2008 | 10:40 am

Gas crunch: How Americans are coping

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 10:39 am

Dollar ends week higher

The dollar inched higher against the euro and yen on Friday in muted trade as the United States celebrated its independence a day after the US currency surged. The European...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 10:36 am

Oil holds steady around $145

Crude oil prices hovered near $145 a barrel on Friday, close to the record highs reached in the previous session.Trade was subdued with many US markets closed for the Independence Day public holiday.In...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 10:34 am

Europe Markets: Banks, miners pull Europe lower; Swiss lender UBS rises

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 10:30 am

YouTube told to give video logs to Viacom

Dismissing privacy concerns, a federal judge overseeing a $1 billion copyright-infringement lawsuit against YouTube has ordered the popular online video-sharing service to disclose who watches which video clips and when.

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 10:28 am

High costs hit fireworks producers

As Fourth of July fireworks light cities across the United States, the companies that orchestrate the epic productions face an uncertain future.

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 10:24 am

Austria court convicts bankers over heavy BAWAG losses

VIENNA (Reuters) - A Vienna court sentenced nine people to prison on Friday for their roles in causing losses at Austrian bank BAWAG P.S.K. of as much as 1.7 billion euros ($2.7 billion) through risky investments.

Source: Reuters: Business News | 4 Jul 2008 | 10:23 am

Air France eyes move to railways

Air France confirms it is in talks with French group Veolia about launching a high-speed rail service.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 10:21 am

Banks: Everything must go!

If it's not bolted down, you can bet that troubled financial firms are thinking of putting a price tag on it.

Source: Business and financial news - CNNMoney.com | 4 Jul 2008 | 10:20 am

European banks need to raise 60-90 billion euros: Goldman

(Reuters) - Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros, or withhold one year of dividends, to reach an aggregate Tier I ratio of
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 10:16 am

Origin tells shareholders to reject BG bid

Origin Energy has formally rejected a hostile A$13.8bn takeover bid from BG Group amidst widespread expectations that the UK gas producer will be forced to raise its offer if it wants to secure the Australian...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 10:15 am

Origin tells shareholders to reject BG

Qatari's make fresh swoop on Sainsbury's shares

The Qatari Investment Authority (QIA) has upped its shareholding in J Sainsbury for the second time in a fortnight in a swoop that has sparked a share price rally in Britain's biggest supermarkets.
Source: Latest Business News from Times Online | 4 Jul 2008 | 10:13 am

Infineon shares up over 5 percent on takeover talk

FRANKFURT (Reuters) - Shares in German chipmaker Infineon rose more than 5 percent on Friday, with traders citing unspecified takeover rumors.

Source: Reuters: Business News | 4 Jul 2008 | 10:11 am

Euro stabilises after sharp fall

The euro held steady close to a one-week low against the dollar on Friday following a plunge in the previous session after the European Central Bank signalled it was not planning another rise in eurozone...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Jul 2008 | 10:10 am

The Markets' Red Glare

The U.S. exchanges are closed for the July 4th holiday, giving the bears a rare chance to rest.

Source: SmartMoney.com | 4 Jul 2008 | 10:03 am

Infineon shares up over 5 percent on takeover talk

FRANKFURT (Reuters) - Shares in German chipmaker Infineon rose more than 5 percent on Friday, with traders citing unspecified takeover rumors.
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Jul 2008 | 10:00 am

BBC Worldwide shuts phone-in firm

BBC Worldwide is to close a subsidiary firm after it failed to pay £106,000 from premium rate phone-ins to charity.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 9:59 am

Australia's Origin Energy rejects BG's $13B bid (AP)

AP - Origin Energy Ltd., Australia's second largest power retailer, rejected a $13 billion takeover bid Friday from British natural gas producer BG Group.
Source: Yahoo! News: Business | 4 Jul 2008 | 9:52 am

Origin Energy spurns $13bn bid from BG$

Origin Energy, the Australian coal seam gas producer, today rejected a $13 billion ($£6.56 billion) bid from BG Group, the UK gas producer, and will pursue separate deals with joint venture partners to generate value from its coal seam gas, including partnerships with liquefied natural gas companies.
Source: Latest Business News from Times Online | 4 Jul 2008 | 9:45 am

Euro zone rate rise signals ECB serious: policymakers (Reuters)

Reuters - The European Central Bank's interest rate rise sends a signal that it is serious about combating inflation, policymakers said as they staged a public relations offensive to justify Thursday's increase.

Source: Yahoo! News: Business | 4 Jul 2008 | 9:26 am

Bradford & Bingley shares drop after TPG backs out

LONDON (MarketWatch) -- Shares in Bradford & Bingley dropped sharply Friday after private equity group TPG Capital backed out of a deal to pump cash into the struggling U.K. mortgage bank.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 9:25 am

Broadband speeds must be faster, says Ofcom

Telecoms regulator Ofcom has called on fixed line operators like BT and Virgin Media to offer much faster broadband speeds and has promised to let them make a return if they make the necessary heavy investments.
Source: Telegraph Business | 4 Jul 2008 | 9:25 am

Broadband speeds must be faster, says Ofcom

Recession in Asia is 'unlikely'

Growth in Asia may slow this year, but a recession is unlikely, the head of the Asian Development Bank says.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 9:07 am

BHP almost doubles Chinese prices

Mining giant BHP Billiton secures an deal to almost double prices for Chinese steelmaker Baosteel.
Source: BBC News | Business | World Edition | 4 Jul 2008 | 8:49 am

Asia Markets: Nikkei slips for 12th consecutive session

Japan’s Nikkei 225 index ended lower Friday to log its 12th straight decline and move a step closer to a losing string not seen on the Tokyo benchmark in 54 years.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 8:37 am

Piper Alpha

Recalling the world's worst offshore oil disaster
Source: BBC News | Business | World Edition | 4 Jul 2008 | 8:33 am

SCi raids broker for new finance director

SCi Entertainment, the computer games maker behind Lara Croft's Tomb Raider, has recruited its new finance director from its broker, KBC Peel Hunt.
Source: Latest Business News from Times Online | 4 Jul 2008 | 8:20 am

TPG walks away from UK bank rescue

Private equity group TPG Capital pulled out of a £400m capital increase for Bradford & Bingley after Moody's downgraded the UK mortgage lender's credit rating
Source: FT.com - US homepage | 4 Jul 2008 | 8:20 am

Bradford & Bingley shares tumble after TPG walks away

UBS avoid losses through £1.5bn tax credit

UBS, the Swiss bank battered by the mortgage crisis, today insisted it would not need to raise more funds through a rights issue after being saved from announcing further losses by clawing in SwFr3 billion (£1.5 billion) from a tax credit.
Source: Latest Business News from Times Online | 4 Jul 2008 | 7:37 am

Bradford & Bingley confirms investor bailout after TPG exit

Shares in Bradford & Bingley (B&B) today slumped to just above its rights issue price after shareholders balked at a new rescue plan following TPG's decision to pull out of a deal when Moody's, the credit rating agency, downgraded the lender's debt.
Source: Latest Business News from Times Online | 4 Jul 2008 | 7:12 am

Taiwan, China resume flights for first time since 1949

Taiwanese and Chinese airline shares traded mixed Friday after the resumption of direct travel links across the Taiwan Straits, the first since the Kuomintang fled to the island in 1949 after losing the civil war to the Communist Party.

Source: MarketWatch.com - Top Stories | 4 Jul 2008 | 7:08 am

Fragile economy takes toll on jobs

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

Good news for California tourism: July 4 travel expected to decline

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

Some firms cutting costs to save jobs

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

Former Refco CEO sentenced

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

Stocks end mixed following jobs, services data

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

Gasoline seller MyGallons.com gets 'F' from Better Business Bureau

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

Ruling against YouTube worries privacy advocates

Source: L.A. Times - Business | 4 Jul 2008 | 7:00 am

John Lewis department store sales plunge 8.3%

Evidence that shoppers are deserting the high street continued today as John Lewis said that sales in its department stores had fallen by the biggest amount for three years.
Source: Latest Business News from Times Online | 4 Jul 2008 | 6:58 am

Banks bail out Bradford & Bingley after TPG walks away

Dollar hits new low

The New Zealand dollar stuck to a narrow range ahead of a United States holiday, but managed to sink to a new seven-year low against the Australian dollar. By 5pm, the kiwi was at US75.61c from US76.03c late yesterday afternoon,...
Source: New Zealand Herald - Business | 4 Jul 2008 | 5:47 am

Kitchen rage pay cut

It's rare in New Zealand for employees to suffer a pay cut, even for misbehaviour or terrible performance. Unless they are dismissed, the most severe financial sanction is usually no pay rise, or no bonus. It would seem that this...
Source: New Zealand Herald - Business | 4 Jul 2008 | 2:53 am

Contact owners formally reject $13b BG bid

Origin Energy Ltd, Australia's second largest power retailer and 51-per cent owner of Contact Energy, has formally rejected a A$13.7 billion ($17.6 billion) takeover bid from BG Group Plc. BG Group, the UK's third largest natural...
Source: New Zealand Herald - Business | 4 Jul 2008 | 2:00 am

Job market continues to crumble

The unemployment rate held steady in June at 5.5 percent, but the last two months have seen 124,000 jobs come off the payroll. Host Bob Moon looks at the latest numbers.
Source: Marketplace | 4 Jul 2008 | 1:12 am

Telecom plans big IP spend-up

Telecom, whose share prices is bobbing around near a 15-year low, said today it plans to spend $130 million on new internet Protocol (IP) network. It has selected Alcatel-Lucent to build the network. The nationwide network...
Source: New Zealand Herald - Business | 4 Jul 2008 | 1:00 am

Small towns go without 'oohs' & aahs'

Rising prices and stricter export controls are forcing many small towns to canceling or cutting back on their fireworks displays this year. Mitchell Hartman reports.
Source: Marketplace | 4 Jul 2008 | 12:44 am

Trends & Innovations - Thursday

Many adults not caught up in Web. A new medical test that can detect a tiny single cancer cell among 1 bil healthy blood cells was developed by...

Source: Investor's Business Daily: BUSINESS | 4 Jul 2008 | 12:32 am

Chipmaker Connects A Wireless World And Makes It Run Faster

Laptops long ago stopped needing wires to be wired.

Source: Investor's Business Daily: BUSINESS | 4 Jul 2008 | 12:32 am

Staying In For The Long Haul

In the face of floods, fuel prices and a feeble economy, the railroads keeping chugging along. The rail boom that began almost five years ago...

Source: Investor's Business Daily: BUSINESS | 4 Jul 2008 | 12:32 am

Business Briefs - Thursday

BHP clears U.S. hurdle in Rio bid. The world's third largest mining company said U.S. antitrust regulators had granted partial approval for its...

Source: Investor's Business Daily: BUSINESS | 4 Jul 2008 | 12:32 am

As Economy Cools Off, Coal Remains Red Hot

Eastern U.S. railroad operator Norfolk Southern knows how the housing slowdown and soft auto market can affect other kinds of businesses --...

Source: Investor's Business Daily: BUSINESS | 4 Jul 2008 | 12:32 am

In Brief - Thursday

Dry-bulk shipper DryShips (DRYS) signed a deal to buy four Panamax vessels for $400 mil, and has agreed to sell three older carriers for $213 mil...

Source: Investor's Business Daily: BUSINESS | 4 Jul 2008 | 12:32 am

Olympic security deters businesses

China's new Olympic security rules are proving such a hassle to foreign companies that some are looking to take their business elsewhere. Host Bob Moon asks Marketplace's Scott Tong about the new hassles.
Source: Marketplace | 4 Jul 2008 | 12:07 am

Silver lining to gloom over pensions and shares

Outlook is daunting for investors right now but they should not panic, writes Ian Cowie, Personal Finance Editor. Historical evidence shows that after markets fall they eventually bounce back higher
Source: Telegraph Business | 4 Jul 2008 | 12:01 am

Grant Bovey talks with HBOS on Imagine Homes restructure

By Jonathan Russell and Helen Power
Source: Telegraph Business | 4 Jul 2008 | 12:01 am

Robert Tchenguiz unwinds Mitchells & Butlers CFDs

Robert Tchenguiz has transferred the bulk of his contracts for differences in Mitchells & Butlers for shares in the pub company in a move that could limit shorting of the stock.
Source: Telegraph Business | 4 Jul 2008 | 12:01 am

Sir Martin Sorrell prepared to go hostile in fight for TNS

Sir Martin Sorrell is ready to go hostile with his £1bn offer for market research firm Taylor Nelson Sofres (TNS) if he fails to secure a recommendation from the board.
Source: Telegraph Business | 4 Jul 2008 | 12:01 am

Landco lenders may be left high and dry - report

Lenders to Landco, one of the country's largest property development companies, half owned by the Todd family - the country's wealthiest family - could be left high and dry, according to the National Business Review today. The...
Source: New Zealand Herald - Business | 4 Jul 2008 | 12:00 am

Google told to hand over YouTube users' data

Google has run into a fresh storm over online privacy after a US judge ordered YouTube, its popular online video site, to hand over records detailing the viewing habits of its millions of users.
Source: FT.com - US homepage | 3 Jul 2008 | 11:54 pm

U.S. Fireworks Supplies Affected by Chinese Warehouse Fires

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 11:40 pm

No love for tennis from U.S. viewers

With no American in the men's quarterfinals at Wimbledon, viewers in the U.S. are passing on TV coverage of this year's championships. Host Bob Moon asks commentator Diana Nyad if tennis has an image problem?
Source: Marketplace | 3 Jul 2008 | 11:30 pm

Levy Says Economy `Quite Weak' Despite Stimulus Checks

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 11:29 pm

Winners and losers with a weak dollar

U.S. exports are up and imports are down as a result of the dollar losing so much of its value against the euro. Who comes out ahead and who falls behind? Jeremy Hobson reports.
Source: Marketplace | 3 Jul 2008 | 11:12 pm

Video games a boon for families feeling the pinch

Families facing escalating household bills are turning to video games on the Nintendo Wii and PlayStation 3 for affordable fun.
Source: Latest Business News from Times Online | 3 Jul 2008 | 11:10 pm

The week that was: More pain, no gain -- except for OPEC

Source: L.A. Times - Business | 3 Jul 2008 | 11:07 pm

Chrysler may be headed for bankruptcy, says analyst

DETROIT - Faced with soaring gas prices, a sputtering economy and a rapid US market shift away from trucks, the US auto industry's weakest player, Chrysler, may have to file for bankruptcy or sell its storied Jeep and Dodge Ram...
Source: New Zealand Herald - Business | 3 Jul 2008 | 11:00 pm

Fed values Bear Stearns assets at $29bn

The Federal Reserve Bank of New York confirmed the estimated fair value of assets that were formerly held by Bear Stearns at about $29bn, the amount at which it was sold to JPMorgan in March
Source: FT.com - US homepage | 3 Jul 2008 | 10:55 pm

Job Cuts Continue, Auto Sales Reported, AT&T Golf in Swing

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 10:46 pm

Best and worst cities for unemployment pay

Source: L.A. Times - Business | 3 Jul 2008 | 10:41 pm

Gaming industry's luck runs out

Casinos and racetracks are struggling to convince gaming fans to come out despite high prices on gas, food and lodging. Ashley Milne-Tyte reports.
Source: Marketplace | 3 Jul 2008 | 10:41 pm

NZ Shares : Trading pick up after 3 yr low

The sharemarket opened generally firmer today after it plunged 2.2 per cent yesterday to a fresh three-year low. On Wall Street, shares closed mixed today after a key labour market report showed a drop in US payrolls but was not...
Source: New Zealand Herald - Business | 3 Jul 2008 | 10:36 pm

Economy - Thursday (Investor's Business Daily)

Investor's Business Daily - The benchmark 30-year fixed home loan rate fell 10 basis points to 6.35%, ending a 5-week uptrend to a 9-month peak, mortgage finance giant Freddie Mac said. Weaker economic data made a Fed rate hike less likely, pushing Treasury yields and mortgage rates lower. The 15-year fixed-rate mortgage slid 12 ticks to 5.92%. The 1-year ARM fell 10 basis points to 5.17%.
Source: Yahoo! News: Business | 3 Jul 2008 | 10:02 pm

Commerce Commission wants Supreme Court ruling on Infratil bus bid

The Commerce Commission is seeking leave to appeal to the Supreme Court against a decision regarding investment company Infratil's actions in the attempted acquisition of Mana Coach Services. The Court of Appeal found Infratil...
Source: New Zealand Herald - Business | 3 Jul 2008 | 10:00 pm

Google must hand over YouTube data, judge rules

Source: L.A. Times - Business | 3 Jul 2008 | 9:41 pm

YouTube ordered to reveal users' info

A federal judge has ordered Google to disclose users' viewing histories on YouTube, including usernames and IP addresses. Stacey Vanek-Smith looks into the privacy concerns the ruling raises.
Source: Marketplace | 3 Jul 2008 | 9:24 pm

MPs target inflation-busting tools

National is accusing the Government of cynical politicking in calling the monetary policy framework into question when it has no alternative to offer. "They are clearly looking for some way of dealing with cost of living issue...
Source: New Zealand Herald - Business | 3 Jul 2008 | 9:00 pm

Release is boost for Colombia's president

A mood of jubilation swept across Colombia following the dramatic rescue of Ingrid Betancourt and 14 other hostages from Farc guerrillas after more than six years in captivity
Source: FT.com - US homepage | 3 Jul 2008 | 8:37 pm

Hot Jobs: Pyrotechnician

The second installment in our "Hot Jobs" series: A trip to the Hollywood Bowl where pyrotechnician Eric Elias lights up the night sky.
Source: Marketplace | 3 Jul 2008 | 8:36 pm

Bear-ly Changed

Did the Federal Reserve bail out a bad investment when it orchestrated J.P. Morgan Chase's takeover of Bear in March?

That was the question many hoped would be at least partially answered when the Fed today revealed its estimated fair-market value of $30 billion in Bear Stearns assets it accepted as collateral on the deal.

That answer, unfortunately, will have to wait for another day. Tucked inside its weekly report on reserve balances, the Fed said the value of the Bear assets had fallen by 4 percent, to $28.89 billion, as of June 26.

The drop was in line with other AAA-rated mortgage securities since March, and lower than some on Wall Street had feared. But there was skepticism among analysts about how the Fed valued the assets.

The central bank said it would do so as if "the transaction were to be conducted in an orderly market on the measurement date." But financial markets have been anything but orderly since March.

"The Fed is saying we are putting them under lock and key," Thomas Higgins, chief economist at Payden & Rygel told Reuters. "If they sell them now, they would have to sell them at distressed levels. Would that be the true market value?"

The drop in the value of Bear assets suggests that already-battered banks may take yet another hit to their balance sheets, though not as bad as some had feared before the number was released.

William Sullivan, chief economist at JVB Financial Group in Boca Raton, Florida, told Reuters a portfolio-value estimate below $25 billion would have been a red flag for other banks. A number under $28 billion would have suggested "appreciable write-downs" were still likely in the industry.

The Bear portfolio of mostly mortgage-backed securities, now dubbed Maiden Lane after a street in Manhattan's financial district, is being held by the New York Fed and managed by BlackRock Financial.

The accrued interest on Maiden Lane payable to the Fed is $12 million, while the outstanding principal and interest payable to J.P. Morgan stands at $1.15 billion. The Federal Reserve will update the value of the portfolio on a quarterly basis.

Also on Portfolio.com

Complete Coverage of Bear Stearns' Collapse
Profile of New York Federal Reserve President Tim Geithner
A Graphic Novel on the Last Days of Bear Stearns Related Links
The Man Who Saved (or Got Suckered by) Wall Street
Steady as It Goes
The Great Depression Debate

Source: Portfolio.com: Top 5 | 3 Jul 2008 | 8:30 pm

Cush Says Virgin America Prefers `Demand-Based' Pricing

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 8:28 pm

Ellis Says George Washington Was Greatest Early American Hero

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 8:19 pm

Cyberspace selling boost for Fonterra

Fonterra has put thousands of tonnes of milk powder worth tens of millions of dollars up for sale during the first run of its online trading platform. The dairy co-operative - the world's biggest dairy exporter - launched its online...
Source: New Zealand Herald - Business | 3 Jul 2008 | 8:00 pm

The Great Divide (Divorce)

It's one of the most painful events that half of all married couples go through. Don't make it worse by committing costly mistakes.

Source: SmartMoney.com | 3 Jul 2008 | 7:59 pm

On The Ball: Yankees Drought, Kobe Bryant Talks Basketball

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 7:59 pm

Retired General Flowers Says Corporate Money Needed For Levees

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 7:54 pm

MGM Wins Ruling Over `Pink Panther' Movie Profits

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 7:47 pm

Rulings Thrust U.S. High Court Into Presidential Race

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 7:38 pm

Switching Carriers to Get the iPhone Can Cost You (Deal of the Day)

Planning to switch to AT&T so you can buy the new iPhone? Weigh these costs first.

Source: SmartMoney.com | 3 Jul 2008 | 7:30 pm

Lover of Cheating Husband Wins Point, Loses Case

Source: Bloomberg - All Podcasts | 3 Jul 2008 | 7:26 pm

UK court to hear $4bn Rusal dispute

Oleg Deripaska, the Russian billionaire, will have to fight a $4bn (€2.5bn) claim brought against him in the High Court in London following an extraordinary judgment that cites assassination, corrupt judges and Kremlin interference as the risks of running a trial in Russia
Source: FT.com - US homepage | 3 Jul 2008 | 7:17 pm

Howard's Schultz-pah

At my local Starbucks this morning, I had to struggle to find a parking place. Inside, people played with their children, lovers flirted in the corners, and bloggers huddled over their laptops. John Coltrane and Sonny Rollins played in the background. I spotted no blood on the floor, nor bodies piled up in the back.

One would never have known that two days ago was the most brutal day in Starbucks' history. The company announced it was closing 500 stores on top of the 100 it was already shutting down.

But the occasion was more significant than that. Tuesday, July 1, 2008, was, for Starbucks, a date which will live in infamy. It was the day that two enduring Starbucks myths passed on.

One was the myth of infinite expansion, the idea that America's appetite for venti no-foam lattes was limitless. If Starbucks had its own Frederick Jackson Turner, the great chronicler of America's movement west, he would say that the Starbucks frontier had finally closed—curbed not by the Pacific Ocean but by a tanking economy, the price of gas, and its own imperialistic chutzpah.

The other myth was of the fundamental benevolence of a company that calls every one of its employees "partners." Suddenly, 12,000 of those partners learned about newfangled partnerships that one side could unilaterally terminate.

The chief propagator of those myths was, of course, the architect of Starbucks itself: Howard Schultz, the visionary who built the chain from a five-store boutique in Seattle into an international colossus.

Before profiling him for Condé Nast Portfolio this month, I'd have thought Schultz, who returned as Starbucks' C.E.O. in January after seven years pulling strings from the shadows, would have borne the bad news himself.

Instead, the word came from one of his subalterns: Reports in both The New York Times and the Wall Street Journal mentioned Schultz only in passing. This made sense, I'd learned. Schultz hates dissonance, and doesn't do gloom.

After my article appeared—in fact, even before, since his minions had somehow obtained a copy early—he called to accuse me of "betrayal." I'd let down both him and Starbucks, he said.

It's a curious thing to tell a reporter, but for all his success and savvy, Schultz is not just incredibly thin-skinned, but almost an innocent. He considers himself a philanthropist who happens to run a coffee company, and who happens to have become a billionaire doing so.

Since he hasn't the slightest doubts about the fundamental goodness of either himself or his mission, he simply can't fathom anyone who might—or is paid at least to ask.

So, as exasperating and infuriating as his call was—no reporter likes to be accused of writing a "hatchet job," as he said I had—it was also strangely endearing, as is Schultz himself:

Here was someone who cared less about whether people thought he was smart and competent than about whether they’d consider him a nice guy. Of how many executives could you say such a thing?.

Now 12,000 partners had suddenly learned what betrayal really was. Surely, I surmised, they'd be venting on starbucksgossip.com, the website largely of, by, and for Starbucks employees. But of the hundreds of agonized posts there since Black Tuesday, only a few targeted Schultz himself.

(Sample: "Do you think he stops and thinks for one second about the 12,000 people he puts out of a job?" went one. "No way! No hesitation—no problem. He has no soul, and no conscience. Classic definition of a narcissistic psychopath.")

But more people seemed upset with Schultz's stewardship of the Seattle SuperSonics, which effectively drove the pro basketball team out of town, than with Starbucks. It's as if, for all the talk of the Kool-Aid they've taken, Starbucks employees had stopped buying his shtick.

But I still do. Schultz's beliefs are no act. Claiming, as he told me, that Starbucks' mass-produced espresso is the best in the world, or that he knows better what's best for his employees than any union, may seem delusional. But a delusion is also a conviction, and Schultz, I think, is full of convictions.

Every Starbucks barista knows the story of Schultz's father, a painter in Brooklyn who, laid up with an injury, could barely support his family. It was this experience, or so sayeth Starbucks scripture, that led Schultz to resolve to do better by his employees, providing health care to them even though they only worked part-time.

Discarding so many of them now is, I bet, more than he can bear, or maybe even, assimilate: Otherwise, his father would now be the one who feels betrayed. Better to look the other way, and fob off the task to someone else.

The Starbucks near me is clearly not on the endangered list. Most of the outlets targeted for the scrap heap are either in places where recession has hit hardest, like Florida and California, or which have been opened in the last few years, or which are hard by existing stores.

My Starbucks—in the beachside Hamptons section of Long Island, a place which Schultz originally declared Starbucks-free so that his summers here wouldn't be spoiled by thoughts of work—has been around a while. It is miles from any other Starbucks (or any other place serving decent coffee) and is in a community that really is, as Schultz once said of Starbucks' entire realm, "recession-proof."

Here, for the foreseeable future, Starbucks remains the "affordable indulgence" Schultz has always described.

And, as my morning at my local reminded me, at its best, Starbucks is far more than that. Outside, it is getting hot, and a line of behemoth S.U.V.'s are rumbling in for the holiday weekend. But inside, things are extremely pleasant.

This Starbucks, unlike many others, is neat and clean and bright, not clutter and noise in sepia. Everyone—employees and customers alike—seems in a good mood. The music—Sam Cooke and Lou Rawls are now singing Bring it On Home to Me—is pleasant. No one has hassled me for an instant. A friend came up to me to say hello, and there are all those other interesting people here I don't yet know.

My cappuccino—I asked for it "semi-dry," to get it the way it should always be made, without lots of preliminary adjectives—was excellent. And after rummaging around for one, then rinsing out the dust, they even served it to me in a genuine ceramic cup.

There are those who never liked Starbucks, who think its beans are too "burned," etc. Others, like me, once patronized it often, but soured on the place as it turned sloppy and mechanized. Whatever business Schultz lost from us he more than made up for as the teeny-boppers arrived.

The real problem comes from Americans suddenly pinching their pennies, and going to McDonald's or Dunkin' Donuts or 7-Eleven instead. But this morning reminded me anew of Howard Schultz's great accomplishment: he has created America's civilian USO, a home away from home.

There will now be a few fewer of those homes, spread out more reasonably, but neither Wall Street nor OPEC nor some competitor can diminish what Schultz has achieved.

The only question is, should recession-ridden Americans stay away, how good a business that achievement really is, and whether emotional, sentimental, and suddenly invisible Howard Schultz can fix it.Related Links
Tall Order
Eat Sheet: Coffee
Howard Schultz Decoded: We Aren't, But We Are

Source: Portfolio.com: Top 5 | 3 Jul 2008 | 7:00 pm

Income, Share Gains Beckon for Seagate (Stock Screen)

Seagate's a tech with a decent yield, an unassuming price and some tech problems.

Source: SmartMoney.com | 3 Jul 2008 | 6:31 pm

ETFs End Week Enduring Bear Market (Daily ETF Wrap-Up)

Bubbly crude and the official advent of a bear market rained on investors' parade.

Source: SmartMoney.com | 3 Jul 2008 | 6:16 pm

Energy shares, tame jobs data lift Dow (Reuters)

Reuters - NEW YORK (Reuters) -The Dow rose on Thursday, a day after the blue-chip average entered a bear market, on relief payrolls data was not as weak as some had feared and with another record oil price boosting energy shares.

Source: Yahoo! News: Business | 3 Jul 2008 | 6:12 pm

Dumping of Coal Stocks Presents Opportunity (Stock Screen)

A sudden drop in prices spooked investors. But the near-term outlook looks plenty warm.

Source: SmartMoney.com | 3 Jul 2008 | 6:12 pm

Continental faces trial over Concorde crash

Continental Airlines and five individuals have been ordered to stand trial over the crash of an Air France Concorde near Paris that killed 113 people in July 2000
Source: FT.com - US homepage | 3 Jul 2008 | 6:03 pm

Price War, Defects, Delays Plague Nvidia (One-Day Wonder)

Nvidia shares blew a fuse after the chip maker's jarring warning.

Source: SmartMoney.com | 3 Jul 2008 | 5:36 pm

Selling Your Home While Buying a New One (Genworth Financial Fitness)

It isn't easy to buy and sell a home at the same time. We'll help you figure it out.

Source: SmartMoney.com | 3 Jul 2008 | 5:33 pm

Selling Your Home While Buying a New One (Real Estate)

It isn't easy to buy and sell a home at the same time. We'll help you figure it out.

Source: SmartMoney.com | 3 Jul 2008 | 5:33 pm

Short Session Ends Mixed

The Dow posted a modest gain, but the Nasdaq slipped a bit on Nvidia's profit warning.

Source: SmartMoney.com | 3 Jul 2008 | 5:22 pm

The 52-week Low Club (UNH)(FRE)(CDE)(NVDA)

Unitedhealth Group (UNH) Lay-offs and lowered forecast. Down to $22.72 from 52-week high of $59.46. Freddie Mac (FRE). Concern that market conditions will make firm raise more money. Drops to $14.35 from 52-week high of $67.20. Coeur d'Alene Mines (CDE) No news. Drops to $2.46 from 52-week high of $5.18. Nvidia (NVDA) Big cut in revenue forecast. Down to $12.40 from 52-week high of $39.67. Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Jul 2008 | 4:53 pm

This Week's Worst Analyst Calls (MER, GM, GS, UAUA)

There were two ghastly research calls this week from separate firms on separate companies. While one is more severe than the other, these two analyst downgrades are essentially a tie for the severity of tardiness. In fact they are such late calls and so far behind the pack that it is a real wonder as to just how much the research teams that just discovered these issues actually get paid. It's hard to imagine being an institutional portfolio manager and receiving the call for these downgrades on Wednesday this week. The answer was probably, "OK, well thanks I guess. Did...

Source: 24/7 Wall St. | 3 Jul 2008 | 4:26 pm

Penn National's $6.1bn buyout abandoned

The $6.1bn private equity takeover of Penn National Gaming has been aborted because of market conditions and the risk of spiralling legal costs
Source: FT.com - US homepage | 3 Jul 2008 | 3:23 pm

Like a Bad Reality TV Show

Kohlberg Kravis Roberts & Co. still wants to go public.

Crazy, right?

The big buyout shop filed its initial registration for an I.P.O. exactly one year ago today, the Wall Street Journal reminds us. And according to Peter Lattman's sources, the firm still wants to follow through with it, despite the tumultuous market environment that's emerged over the past 12 months. Dan Primack over at Private Equity Hub says he's hearing the same thing.

K.K.R. has gotten its ducks in a row for a public debut by hiring all sorts of necessary chiefs overseeing legal, compliance, human resources, technology, and public affairs.

It has also taken steps to diversify itself as opportunities in its core business, private equity, have essentially evaporated. K.K.R. hasn't done a single buyout in the U.S. so far this year.

It has, however, begun plans to launch a new fund to invest in infrastructure and expanded its investment in its fixed-income business. It's also been ramping up a capital-markets group to syndicate the debt and equity for the deals it hopes to do one day again.

In essence, K.K.R. is making itself look more like a diversified financial firm—more like an investment bank than a buyout shop.

These are arguably smart moves for K.K.R. to make. But are the public markets any hungrier for an investment bank today than they are for a private equity firm?

It's doubtful.

Moreover, it's not clear exactly why K.K.R. is so eager to make its public debut when it can still find plenty of capital from less scrutinizing sources, such as sovereign wealth funds. "After all, does the notoriously secret firm really want the world to know just how much smaller than Blackstone it really is?" Primack asks.

And then there are the comparables to K.K.R. Blackstone Group, Fortress Investment Group, and Och-Ziff Capital Management have gotten no love from public investors of late. Buyout deals continue to blow up—Fortress' failed attempt to take Penn National Gaming private is the just the latest today.

A K.K.R. public offering would certainly garner attention. But it's feeling a bit like a bad reality show: You can't help but watch it, just to see its stars willingly embarrass themselves in front of a national audience.

Related Links
Masters of the Universe, Ranked
Is Tech the Next Frontier for Buyouts?
Blackstone Pops at the Opening

Source: Portfolio.com: Top 5 | 3 Jul 2008 | 3:00 pm

US jobs fall for sixth straight month

The US lost jobs in June for the sixth month in a row while jobless numbers remained at an elevated level, signalling an ongoing deterioration in the labour market and helping to push back thoughts of a hike in interest rates
Source: FT.com - US homepage | 3 Jul 2008 | 2:39 pm

GM (GM) May Market Mini-Car In US

BMW has the Mini Cooper. Now GM (GM) plans to bring its own brand of mini into the US. GM will probably import its Chevrolet Beat to America to offer a car which gets higher miles-per-gallon than any other vehicle the auto company markets here. According to Bloomberg, "Besides the Beat, GM is weighing a list of options for refocusing its auto lineup on fuel efficiency rather than performance. They include the U.S. introduction of a small pickup popular in Latin America." GM still faces the extremely difficult question of whether it will run out of time and money before...

Source: 24/7 Wall St. | 3 Jul 2008 | 2:16 pm

British MPs to probe oil speculators

The Treasury select committee is to hold its first hearing into the regulation of London's oil markets, reflecting increased political pressure – notably in the US – over the possible role of speculators in driving oil prices to record highs
Source: FT.com - US homepage | 3 Jul 2008 | 2:09 pm

Penn Actually Wins In Merger Implosion (PENN, FIG)

Penn National Gaming Inc. (NASDAQ: PENN) has been considered a dead merger for quite some time, yet it only officially became a dead merger this morning. This was the last of the big multi-billion deals still officially on the books that was put together back before we had a full blown credit crunch. PNG Acquisition Company Inc. was the entity that was going to do the acquisition, and that was an entity indirectly owned by certain funds managed by affiliates of Fortress Investment Group LLC (NYSE: FIG) and Centerbridge Partners, L.P. The buyout price of $67.00 per share was older...

Source: 24/7 Wall St. | 3 Jul 2008 | 1:48 pm

Strong Analyst Defense of NVIDIA Against The Analyst Pack (NVDA)

While NVIDIA (NASDAQ: NVDA) is being battered and tattered in trading, one analyst has decided that today's fire sale in the stock is creating an opportunity. American Technology Research has decided to Reiterate its BUY rating on NVIDIA and the buy target was taken down only $1.00 to $26.00. The report thesis is essentially, "We are buyers of the stock on the dip following the negative pre-announcement. We believe the fundamental outlook remains positive on GPU leadership....." It takes guts to make this statement and they may be rewarded for their work. We have seen at least four downgrades in...

Source: 24/7 Wall St. | 3 Jul 2008 | 1:15 pm

Doubting Thomas Review Of "In-Line" Jobs Data

If you look at today's jobless numbers and loss of jobs, it really looks OK on the surface. The numbers are close enough when you consider how the calculations (which we are expected to believe) get made and get delivered. But going one layer down into the data and adding in the caveat that Labor Department is habitually wrong on its data, and this just isn't getting any better. Dr. Pangloss would say that this is resemblant of a light recession climate rather than a deep one. A drop of 62,000 non-farm payrolls was reported for June, and this number...

Source: 24/7 Wall St. | 3 Jul 2008 | 1:04 pm

The Slo-Mo Recession

The data were not as ugly as some had feared, but today's June employment report shows an economy that is continuing to deteriorate.

Slowing consumer spending, high energy prices, and tight credit are taking their toll. Employers eliminated 62,000 jobs last month, the Labor Department reported, the sixth consecutive monthly decline. The agency also revised the April and May numbers to show an additional loss of 52,000 jobs for those two months.

Since December, 438,000 jobs have been lost.

Job losses of 400,000 in a single month have occurred in the depths of past recessions. What is different in the current downturn is the slow unraveling of the economy. The landing may not be as hard, but it will also take longer to get off the floor.

"It's a slow-motion recession," Ethan Harris, chief United States economist for Lehman Brothers, told the New York Times earlier this week. "In a normal recession, things kind of collapse and get so weak that you have nowhere to go but up. But we're not getting the classic two or three negative quarters. Instead, we're expecting two years of subpar growth. Growth that's not enough to generate jobs. It's kind of a chronic rather than an acute pain."

Many analysts expect the job market to weaken further. A possible sign of that trend came today as the number of Americans who filed initial claims for state unemployment benefits climbed by 6,000 last week, to 404,000, a level typically seen in recessions.

In June, manufacturing lost 33,000 jobs. Construction employment fell by 43,000.

Health care has been one of the few bright spots in the labor market, but its growth slowed to a gain of 15,000 for the month, half of what it has been in previous months. Government added 29,000 jobs.

The unemployment rate held steady at 5.5 percent for June. Average hourly earnings rose by 6 cents, or 0.3 percent.

The data and a quarter-point increase in interest rates by the European Central Bank earlier today bolstered the dollar and U.S. stock index futures.

Related Links
The Blame Game
Waiting for the Fed
Not a Bad Job

Source: Portfolio.com: Top 5 | 3 Jul 2008 | 12:30 pm

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