World Business News Headlines for July 12, 2008

Concerts, operas and theater at a discount

Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Jul 2008 | 7:00 am

Concerts, operas and theater at a discount

Source: L.A. Times - Business | 13 Jul 2008 | 7:00 am

US regulators close IndyMac Bancorp savings bank

IndyMac Bancorp became the biggest retail bank to fall victim to the US mortgage crisis on Friday, as regulators shut down the Californian savings back after the markets closed because it was unable to raise the cash needed to make good the almost $900 million of losses it has suffered in the worst housing crisis since the Great Depression.$
Source: Latest Business News from Times Online | 12 Jul 2008 | 10:51 pm

Fannie, Freddie say they have plenty of capital

WASHINGTON (Reuters) - Fannie Mae and Freddie Mac said on Friday that their finances were sufficiently sound to withstand the housing crisis as government officials scrambled to restore confidence in the country's two largest mortgage finance companies.

Source: Reuters: Business News | 12 Jul 2008 | 2:53 pm

AAR in fresh battle with BP

The Russian billionaires engaged in a bitter battle over their joint venture with BP will put fresh pressure on the UK oil giant this week after a “disappointing” board meeting last week failed to break an impasse over strategy and control of the company.
Source: Latest Business News from Times Online | 12 Jul 2008 | 2:45 pm

The fall of IndyMac

In what could turn out to be the most expensive bank failure ever, troubled mortgage lender IndyMac Bancorp Inc. was taken over by federal regulators on Friday.

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 2:31 pm

Glitches mar iPhone debut

The new Apple iPhone went on sale Friday morning, but early reports of problems activating the device threatened to overshadow its debut.

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 2:28 pm

Airbus upbeat about new orders at Farnborough

PARIS (Reuters) - Aircraft maker Airbus expects to announce new orders at the Farnborough air show next week, its Director-General Fabrice Bregier said in an interview published on Saturday.

Source: Reuters: Business News | 12 Jul 2008 | 1:28 pm

Fannie and Freddie: A wild ride

The anxiety over Fannie Mae and Freddie Mac, crucial to a recovery of the battered housing market and the economy as a whole, reached a fever pitch on Friday and took shares of the companies and the broader markets on a wild ride.

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 1:23 pm

Senate passes housing bill

After months of debate on Capitol Hill, the Senate on Friday passed a comprehensive housing and foreclosure prevention bill.

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 1:21 pm

Outage hits new Apple service

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 1:17 pm

$109,000 Tesla Roadster's wild ride

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 1:12 pm

World Bank's Zoellick: Food prices high until 2012

AMSTERDAM (Reuters) - World Bank President Robert Zoellick said on Saturday he expected food prices to remain above 2004 levels until at least 2012 and energy prices would also remain high and volatile.

Source: Reuters: Business News | 12 Jul 2008 | 1:10 pm

America's Money: Gas crunch hits home

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 1:08 pm

Stocks whipsawed

Stocks fell Friday, but closed off their lows, as fears that mortgage backers Fannie Mae and Freddie Mac would collapse eased after comments from a leading senator and talk that the Federal Reserve would open up its discount window.

Source: Business and financial news - CNNMoney.com | 12 Jul 2008 | 1:06 pm

Auto Review: A Brief History of Lotus Cars

Lotus was born in the garage of Colin Chapman’s girlfriend some 60 years ago -- a look at the origin of the iconic sports car.

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 1:05 pm

NewsWatch: Federal regulators take control of IndyMac Bancorp

IndyMac Bancorp Inc. has become the biggest casualty of the subprime mortgage crisis, as federal regulators shut down the troubled Pasadena, Calif.-based savings bank in one of the largest U.S. bank failures ever.

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 1:00 pm

Auto Review: 2008 Lotus Elise SC -- FUN

Cars slowed as drivers cranked their heads to see the little vivid blue Lotus Elise SC in our driveway. But the bigger pleasure is what it's like to drive. Ron Amadon gives us a taste.

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 1:00 pm

Short Bets Against Sirius (SIRI) And XM (XMSR) Take Off

Short sellers seems to think the either the merger between Sirius (SIRI) and XM Satellite (XMSR) will not go through or that it will be too late for the financially crippled companies. Short interest in XMSR rose 5.3 million shares to 28 million for the period ending June 30. The short interest in SIRI was up 5.9 million to 153.9 million. It now has the second largest short position of any stock traded on Nasdaq. Although the FCC has signaled that it will approve the merger, Wall St. is concerned that the restrictions put on the new company will be...

Source: 24/7 Wall St. | 12 Jul 2008 | 12:58 pm

Personal Finance Daily: The week's 10 best Personal Finance stories: July 7-11

In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of July 7-11:

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 12:01 pm

Iran sees "renewed strength" in South Pars gas work

TEHRAN (Reuters) - Iran's oil minister said it was working with "renewed strength" in developing a major gas field after French firm Total said it would not invest in the project for now...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 11:59 am

Iran sees "renewed strength" in South Pars gas work

Source: Reuters: Business News | 12 Jul 2008 | 11:59 am

Starbucks (SBUX) Store Closings For July 2008

Here is the list of stores that Starbucks (SBUX) will close in July 2008. Starbucks plans to close a total of 600 stores and lay-off 12,000 full-time and part-time employees in an effort to save money now that its US same-store sales are slowing considerably. Based on information obtained by 24/7 Wall St., Michigan, one of the hardest hit states in the economic downturn, will lose 20% of its Starbucks stores. Douglas A. McIntyre

Source: 24/7 Wall St. | 12 Jul 2008 | 10:12 am

Credit Suisse chairman defends one bank model: paper

ZURICH (Reuters) - Swiss bank Credit Suisse will not withdraw from investment banking despite the losses caused by the credit crisis, the bank's chairman said in an interview published on Saturday.

Source: Reuters: Business News | 12 Jul 2008 | 9:53 am

Credit Suisse chairman defends one bank model: paper

ZURICH (Reuters) - Swiss bank Credit Suisse will not withdraw from investment banking despite the losses caused by the credit crisis, the bank's chairman said in an interview ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 9:53 am

Credit Suisse chairman defends one bank model: paper (Reuters)

Reuters - Swiss bank Credit Suisse will not withdraw from investment banking despite the losses caused by the credit crisis, the bank's chairman said in an interview published on Saturday.

Source: Yahoo! News: Business | 12 Jul 2008 | 9:53 am

Airbus upbeat about new orders at Farnborough

PARIS (Reuters) - Aircraft maker Airbus expects to announce new orders at the Farnborough air show next week, its Director-General Fabrice Bregier said in an interview published on...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 9:29 am

Key US mortgage lender goes bust

One of the largest mortgage lenders in the US, the California-based IndyMac Bank, collapses amid a growing credit crisis.
Source: BBC News | Business | World Edition | 12 Jul 2008 | 7:57 am

ALL BUSINESS: Minimum-wage gains rattle businesses

If the law of averages really worked, then the upcoming hike in the minimum wage would help offset consumers' surging food and fuel costs. A good balance, right? Don't count on it. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 7:10 am

Rise and fall of the Googled swastika

Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 7:00 am

IndyMac Bank seized by federal regulators

Source: L.A. Times - Business | 12 Jul 2008 | 7:00 am

Senate passes foreclosure rescue bill

Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 7:00 am

GE earnings fall 6%, to investors' relief

Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 7:00 am

Glitches delay sales of the Apple iPhone 3G

Source: L.A. Times - Business | 12 Jul 2008 | 7:00 am

Rise and fall of the Googled swastika

Source: L.A. Times - Business | 12 Jul 2008 | 7:00 am

Glitches delay sales of the Apple iPhone 3G

Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 7:00 am

Q & A for IndyMac account holders

Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 7:00 am

Gas-guzzling SUVs and light trucks become an obstacle for marketers

Source: L.A. Times - Business | 12 Jul 2008 | 7:00 am

Gas-guzzling SUVs and light trucks become an obstacle for marketers

Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 7:00 am

Q & A for IndyMac account holders

Source: L.A. Times - Business | 12 Jul 2008 | 7:00 am

Administration seeks to calm fears over Fannie Mae, Freddie Mac

Source: L.A. Times - Business | 12 Jul 2008 | 7:00 am

Lula and Indonesian president pledge biofuel cooperation

Brazilian President Luiz Inacio Lula da Silva and his Indonesian counterpart pledged cooperation on biofuels during talks here Saturday in a bid to take advantage of surging oil prices.
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 6:36 am

IndyMac seized as financial troubles spread

WASHINGTON (Reuters) - U.S. banking regulators swooped in to seize mortgage lender IndyMac Bancorp Inc on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history.

Source: Reuters: Business News | 12 Jul 2008 | 6:06 am

IndyMac seized as financial troubles spread (Reuters)

Reuters - U.S. banking regulators swooped in to seize mortgage lender IndyMac Bancorp Inc on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history.

Source: Yahoo! News: Business | 12 Jul 2008 | 6:05 am

Fannie and Freddie fears, oil over $147 hit Wall St

NEW YORK (Reuters) - U.S. stocks tumbled on Friday as fears about the stability of the top two home financing providers, Fannie Mae and Freddie Mac, combined with oil at a record above $147 to cloud the economic outlook.

Source: Reuters: Business News | 12 Jul 2008 | 5:42 am

Investors set for another tough earnings season

Investors already disheartened about the growing problems of the financial sector and the soaring price of oil are facing more depressing news with the release of second-quarter earnings...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 5:42 am

HK charges ex-Morgan banker with insider dealing

HONG KONG (Reuters) - A former Morgan Stanley managing director has been arrested and charged in Hong Kong with insider dealing linked to trades in CITIC Resources Holdings Ltd , the territory's financial regulatory body said.

Source: Reuters: Business News | 12 Jul 2008 | 5:21 am

HK charges ex-Morgan banker with insider dealing

Market Snapshot: Stocks, weighed by financial woes, face wall of earnings

Stocks will likely start the coming week full of growing uncertainty after news late Friday that retail bank IndyMac was shut down by regulators, becoming the latest victim of the subprime mortgage crisis.

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 4:01 am

In Silicon Valley, a mild-mannered specter haunts Facebook

Aaron Greenspan, an amiable young entrepreneur, toils a mere 15-minute walk south of the Palo Alto, Calif., offices of Facebook, where he’s forging something of a cottage industry out of needling the current darling of Silicon Valley.

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 4:01 am

Nissan, Dongfeng to build engine plant in China: report

Japan's Nissan Motor Co. and its Chinese partner Dongfeng Motor Corp. plan to build a new engine factory in central China, a newspaper reported on Saturday. The two firms...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 3:24 am

In Europe, One Bank Chief Steps Down, and Another May Follow

Jean-Paul Votron left as chief executive of Fortis, and the French newspaper Le Monde reported that the chief executive of Crdit Agricole, Georges Pauget, might also end up quitting.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 3:22 am

Cost of Oil Dulling the Shine of a Global Air Show

Oil prices are likely to preoccupy the representatives of 1,500 companies from 35 countries at the Farnborough International Air Show, aviations showcase event.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 3:17 am

Citigroup to Sell Unit in Germany

Citigroups sale of its German banking operations to Crdit Mutuel of France for 4.9 billion euros ($7.7 billion) in cash sets the stage for what could be a wave of mergers in German banking.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Jul 2008 | 3:16 am

Lehman shares plunge amid market distress (Reuters)

Reuters - Shares of Lehman Brothers plunged to nine-year lows and stock in other Wall Street firms declined as new signs of distress in financial markets spooked investors.

Source: Yahoo! News: Business | 12 Jul 2008 | 3:09 am

Lehman shares plunge amid market distress

NEW YORK (Reuters) - Shares of Lehman Brothers plunged to nine-year lows and stock in other Wall Street firms declined as new signs of distress in financial markets spooked investors.

Source: Reuters: Business News | 12 Jul 2008 | 3:09 am

Stocks, dollar slide on latest credit crisis fear

NEW YORK (Reuters) - Fear the two largest U.S. mortgage finance companies are in such poor health that they need a government bailout pushed financial markets lower on Friday, although...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 2:43 am

Government shuts down mortgage lender IndyMac

IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Jul 2008 | 2:30 am

In Brief - Friday

Illinois Tool Works (ITW), a maker of industrial products and equipment, has paid an undisclosed sum for Dow Chemical's Trymer unit, which makes...

Source: Investor's Business Daily: BUSINESS | 12 Jul 2008 | 1:19 am

Business Briefs - Friday

Infosys tops, guides Q2 EPS low. The Indian IT outsourcing giant said Q1 EPS grew 23% to 54 cents, beating views by 3 cents. Revenue climbed 25%...

Source: Investor's Business Daily: BUSINESS | 12 Jul 2008 | 1:19 am

Urban Outfitters CEO Rolls Up His Sleeves

Apparel seller Urban Outfitters is running circles around rivals in the retail clothing business.

Source: Investor's Business Daily: BUSINESS | 12 Jul 2008 | 1:19 am

Trends & Innovations - Friday

Dyes bring solar power advance

Source: Investor's Business Daily: BUSINESS | 12 Jul 2008 | 1:19 am

Clothing Going Out Of Style?

With the economy wobbling, many people are putting off buying new clothes and shoes and instead getting more use out of what already is in their...

Source: Investor's Business Daily: BUSINESS | 12 Jul 2008 | 1:19 am

Price Of Oil, New Production Pump Up Triple-Digit Earnings Gains

Drivers know Murphy Oil as the operator of low-price gas stations in Wal-Mart parking lots in 20 states.

Source: Investor's Business Daily: BUSINESS | 12 Jul 2008 | 1:19 am

Fannie and Freddie fears, oil over $147 hit Wall St (Reuters)

Reuters - U.S. stocks tumbled on Friday as fears about the stability of the top two home financing providers, Fannie Mae and Freddie Mac, combined with oil at a record above $147 to cloud the economic outlook.

Source: Yahoo! News: Business | 12 Jul 2008 | 1:03 am

Federal regulators take control of IndyMac Bancorp

Source: MarketWatch.com - Top Stories | 12 Jul 2008 | 12:31 am

Continental Air has $22 million gain on special items

WASHINGTON (Reuters) - Continental Airlines Inc said on Friday it recorded an after-tax gain of $22 million in the second quarter reflecting a number of special items.

Source: Reuters: Business News | 12 Jul 2008 | 12:29 am

IndyMac is latest credit turmoil casualty

IndyMac Bank on Friday night became the biggest savings – or thrift – bank to fail in decades and the latest victim of the credit crisis as regulators closed down the troubled mortgage lender
Source: FT.com - US homepage | 12 Jul 2008 | 12:24 am

Paulson stands by Fannie and Freddie

The Bush administration attempted to quash suggestions that the US government might have to nationalise Fannie Mae and Freddie Mac, the giant mortgage companies that have unsettled the financial markets
Source: FT.com - US homepage | 12 Jul 2008 | 12:13 am

Lord James: 52 years at the City crease

Lord James of Blackheath has some trenchant views on corporate life, writes Helen Power
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

BP-TNK partners are back on speaking terms

BP and its billionaire partners in their Russian oil joint venture put the bad-mouthing on hold, with both sides describing a meeting to resolve differences as "polite and cordial."
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Global consortium chosen to clean up Sellafield

A consortium of companies from the US, UK and France has been named preferred bidder for a hard-fought multi-billion-pound contract to run the UK's biggest nuclear site, Sellafield.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Flexible workers bend unemployment trend

The UK is facing recession but, unlike the 1990s, jobless figures are low. David Litterick reports
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Will the Dragons be a roaring success?

Another week of doom and gloom on the markets with the country seemingly slipping inexorably towards recession, but all might not be lost. Parliament, in the form of the Business and Enterprise Committee, is stepping in to see what it can do to create a "higher added value economy". Who are they consulting in their noble quest? None other than three celebrity entrepreneurs from the BBC's Dragons' Den.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

RBS shares hit by global economy gloom

Royal Bank of Scotland shares fell 9pc after a swathe of bad news about the global economy and a setback to the sale of its insurance business hit the banking giant.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Fair value rules will not change, says IASB

The principal body responsible for global accounting rules said it would not dilute the "fair value" standards that critics blame for increasing the scale of credit crisis-related writedowns at banks.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

There ain't no (easy) cure for these summertime blues

A fall of 2.7pc in a single day for the FTSE 100 is notable but yesterday's downward lurch in share prices marked a rather more ominous moment than just another bad day in the trading room. The index ended 22pc below its June 2007 high, which marked the top of the last bull market - a bull market which had seen the FTSE 100 rise 105pc from its previous low in March 2003. Heady days.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Bad weather sees Magners cider sales go flat

Britain's love affair with Magners appears to have been little more than a fling after sales of the cider fell 10pc in the four months to the end of June as consumers continued to abandon the brand.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Bradford & Bingley investors hit for £30m

Bradford & Bingley's bungled fundraising has cost investors £30m. The ailing buy-to-let lender's prospectus yesterday disclosed that the cost of the £400m rights issue has soared to £54m.
Source: Telegraph Business | 12 Jul 2008 | 12:01 am

Continental to write down $87 million, will post gain

Continental Airlines Inc. says it will write down $87 million for its second quarter related to capacity reductions and the value of auction rate securities, while at the same time, post a total gain of $22 million in special items.

Source: MarketWatch.com - Top Stories | 11 Jul 2008 | 11:30 pm

US mortgage firms' shares slump

Shares in US mortgage firms Freddie Mac and Fannie Mae fall as much as 50% in volatile trade amid concerns for their future.
Source: BBC News | Business | World Edition | 11 Jul 2008 | 11:24 pm

VIX Index of U.S. Stock Option Prices Advances 7.4% to 27.49

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 11:18 pm

Economy - Friday (Investor's Business Daily)

Investor's Business Daily - Nearly 70% of Americans, or every 2 in 3, who applied for a home mortgage found the process more difficult than before the U.S. housing crisis began, as lenders have made it tougher to get credit amid falling home prices, according to a survey by Deloitte. The survey said 65% seeking home equity lines of credit reported greater difficulty, as did 62% looking for personal loans.
Source: Yahoo! News: Business | 11 Jul 2008 | 11:04 pm

Economy - Friday (Investor's Business Daily)

Supermarkets and tobacco firm are fined £173m for price fixing

Supermarkets must pay a multimillion pound fine for ripping off smokers in collusion with Gallaher, the tobacco company, it was announced yesterday.
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:01 pm

iPocalypse: iTunes failure brings iPhone launch chaos

Click here for a video review of the 3G iPhone
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:01 pm

Banks Report, Auto Industry Outlook, Marketing Tennis Stars

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 11:00 pm

Magners cider hit by bad weather and downturn

The Irish drinks company behind Magners cider became the latest victim of the consumer downturn after revealing that sales had fallen dramatically in recent weeks.
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:00 pm

Need to know: Sellafield £6.75bn clean up ... HSBC at top ... GE Money sale

Economics
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:00 pm

John Lewis admits the market is tough after posting a new fall in weekly sales

John Lewis reported another fall in weekly sales yesterday and its director of selling admitted: “It's tough out there.”
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:00 pm

Carl Icahn shows the web generation that he still has a deal or two up his sleeve

The yearly meeting of the media and technology elite in Sun Valley, Idaho, is known as a venue where moguls wear blue jeans and big deals are hatched over scenic bicycle rides, leisurely strolls and chats down by the pond.
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:00 pm

Harley-Davidson drives to snap up MV Augusta

MV Agusta, Italy's legendary motorcycle maker that dominated international racing from the late Fifties to the mid-Seventies, has been bought by the Harley-Davidson group.
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:00 pm

Citigroup sells German business to Credit Mutuel

Citigroup sold its German retail banking business to Crédit Mutuel, France’s third-largest retail bank, for €4.9 billion (£3.9 billion) yesterday.
Source: Latest Business News from Times Online | 11 Jul 2008 | 11:00 pm

Stocks to Watch: Stocks in focus for Monday

Among the companies whose shares are expected to see active trade in Monday's session are Genentech Inc. and M&T Bank Corp.

Source: MarketWatch.com - Top Stories | 11 Jul 2008 | 10:56 pm

Canadian Markets: Canada slips as BlackBerry maker loses on iPhone debut

Canadian stocks finish slightly lower as a poor showing in the information technology sector weighed on markets.

Source: MarketWatch.com - Top Stories | 11 Jul 2008 | 10:54 pm

Hot Jobs: Surf instructor

For the third installment in our "Hot Jobs" series, we hang ten with surf instructor Michael Sisiam.
Source: Marketplace | 11 Jul 2008 | 10:47 pm

Facebook open to a world of apps

Social networking websites are opening their systems up to outside developers' applications. The results range from fun diversions to serious business tools. Ankitha Bharadwaj reports.
Source: Marketplace | 11 Jul 2008 | 10:47 pm

Week on Wall Street

Stockbroker and business analyst David Johnson chats with host Kai Ryssdal about what happened on Wall Street this week and what may lie ahead.
Source: Marketplace | 11 Jul 2008 | 10:47 pm

Splitting the check increases the pain

Dividing up the dinner bill may be good manners, but according to commentator Dan Ariely, having one person pick up the tab is good behavioral economics.
Source: Marketplace | 11 Jul 2008 | 10:46 pm

FCC considers Comcast's net blocking

The head of the FCC is calling for a sanction of Internet provider Comcast for restricting users from sharing materials such as movies and music. Jeremy Hobson reports.
Source: Marketplace | 11 Jul 2008 | 10:46 pm

EPA stalls on emission controls

The Supreme Court has told the Environmental Protection Agency it has the authority to impose regulations on emissions with the Clean Air Act. But, under White House pressure, the agency announced a different plan. Nancy Marshall Genzer reports.
Source: Marketplace | 11 Jul 2008 | 10:46 pm

The fallout from Fannie and Freddie

Fannie Mae and Freddie Mac have their hands in 70% of all the mortgages in this country. What do their troubles mean for mortgage holders? John Dimsdale reports.
Source: Marketplace | 11 Jul 2008 | 10:46 pm

What's the plan for Fannie and Freddie?

Rumors and conflicting reports are flying about what the government may do to prop up Fannie Mae and Freddie Mac? Marketplace's Bob Moon explains the mixed signals that have investors worried about another crisis in the mortgage meltdown.
Source: Marketplace | 11 Jul 2008 | 10:46 pm

Fannie, Freddie say they have plenty of capital (Reuters)

Reuters - Fannie Mae and Freddie Mac said on Friday that their finances were sufficiently sound to withstand the housing crisis as government officials scrambled to restore confidence in the country's two largest mortgage finance companies.

Source: Yahoo! News: Business | 11 Jul 2008 | 10:34 pm

FedEx in talks to buy Dutch rival TNT

FedEx is in preliminary talks to acquire TNT, its smaller Dutch rival, in a deal that would bolster the package-delivery company's parcel network in Europe.
Source: FT.com - US homepage | 11 Jul 2008 | 10:31 pm

Citi sells German retail banking for $7.7 billion (AP)

AP - Citigroup will sell its German retail banking operation to France's Credit Mutuel for $7.7 billion in cash.
Source: Yahoo! News: Business | 11 Jul 2008 | 10:07 pm

Boss of Belgium's Fortis resigns

The boss of Belgium's largest bank, Fortis, steps down as shareholders criticise his handling of the credit crisis.
Source: BBC News | Business | World Edition | 11 Jul 2008 | 9:47 pm

Financial ETFs Dip Lower (Daily ETF Wrap-Up)

Controversy around Fannie Mae and Freddie Mac weighed on financial ETFs.

Source: SmartMoney.com | 11 Jul 2008 | 9:33 pm

Wall Street tumbles as mortgage financiers look shaky

NEW YORK - Wall Street's angst over the ongoing fallout from the credit crisis made for a turbulent end to a volatile week Friday - stocks tumbled, soared and then turned south again as investors tried to assess the dangers faced...
Source: New Zealand Herald - Business | 11 Jul 2008 | 9:32 pm

China's algae spread to resorts

The algae outbreak that threatened the Olympic sailing competition has spread hundreds of kilometres to tourist areas, even as officials claimed near-victory over the thick green sludge
Source: FT.com - US homepage | 11 Jul 2008 | 9:30 pm

Airlines hit another rough spot

The already roughed-up airline industry nosedived on Friday as companies and their investors got slammed by high oil prices.

Source: Business and financial news - CNNMoney.com | 11 Jul 2008 | 9:27 pm

Shoppers in clamour for Apple's 3G iPhone

Excited customers queued in cities around the world for the global launch of Apple's 3G iPhone, undeterred by concerns that there might not be enough handsets
Source: FT.com - US homepage | 11 Jul 2008 | 9:25 pm

GoldMoney.com's Turk Discusses Investing in Gold With ETFs

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 9:05 pm

Welcome to shut-off season

With oil prices climbing through the roof, hanging up the car keys has become more popular. But high energy prices affect us many more places than just the gas tank. Jeremy Hobson reports.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Medical power of attorney & living wills

Kiplinger's John Ventura continues his discussion with host Tess Vigeland about planning for the end with a conversation about medical power of attorney and living wills.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Planning for death: Social worker

We present another take on the tough business of planning for the end. This week, we hear from Isabella Vidrialis, a clinical social worker at a hospice in Los Angeles.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Day in the Work Life: Tattoo artist

On this week's "A Day in the Work Life," we go under the needle with tattoo artist Albert Sgambati.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Getting Personal

In this edition of Getting Personal, Chris and Tess talk about insurance options, suspiciously high interest rates and education savings.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

A very liquid asset

In these tough economic times, investors are running from stocks to commodities. This enthusiasm has bred a whole new crop of commodities just waiting to be uncorked. Caitlan Carroll reports.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Which reward is right for your wallet?

Credit cards that offer perks are enticing consumers left and right. But who's really gets the rewards -- you or the credit card company? Jeff Tyler reports.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Straight Story: Time matters

Checking the balance on your retirement account is more cringeworthy every day. Economics editor Chris Farrell sets the story straight on the sinking market.
Source: Marketplace Money | 11 Jul 2008 | 9:05 pm

Summer School: A barrel of oil

We're taking you back to the basics with our summer refresher course on finance terms. Today, what exactly is a barrel of oil?
Source: Marketplace Money | 11 Jul 2008 | 9:04 pm

Is $200-a-barrel oil in our future?

The cost of oil continued its rise this week. Where's the tipping point? Host Tess Vigeland asks oil analyst Tom Kloza how high the price of a barrel of oil will have to go before demand lessens.
Source: Marketplace Money | 11 Jul 2008 | 9:04 pm

FTSE 100 ends day in bear market

London's index of key shares, the FTSE 100, ends in "bear market" territory after another tough day for stocks in Europe and the US.
Source: BBC News | Business | World Edition | 11 Jul 2008 | 8:56 pm

Home loans: Pricier...and scarce

The fate of Fannie Mae and Freddie Mac may be hanging in the balance but many mortgage borrowers already find themselves struggling to find affordable loans - and the legislation intended to help current homeowners may be jeopardized too.

Source: Business and financial news - CNNMoney.com | 11 Jul 2008 | 8:50 pm

Oil hits new high on Iran fears

Ongoing concerns about oil supplies pushes the price of a barrel of crude to new record highs above $147 a barrel.
Source: BBC News | Business | World Edition | 11 Jul 2008 | 8:47 pm

Economic Diary on PPI and CPI Data, Fed Outlook

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 8:27 pm

Stocks Fall on Oil, Mortgage Woes

Equities sank on an oil rebound and a report showing federal concern over the major mortgage backers.

Source: SmartMoney.com | 11 Jul 2008 | 8:17 pm

The 52-Week Low Club (FNM)(FRE)(WB)(LEH)(AMD)(JAVA)

Fannie Mae (FNM) Full-blow panic that it will fail. Down to $6.68 from 52-week high of $70.57. Freddie Mac (FRE) Panic. Falls to $3.89 from 52-week high of $67.20. Lehman (LEH) Panic over potential customer losses and write-offs. Down to $13.29 from 52-week high of $74.09. Wachovia (WB) Fear of more losses. Sells off to $11.15 from 52-week high of $53.10. AMD (AMD) Big write-off of assets. Down to $4.60 from 52-week high of $16.90. Sun (JAVA) Concerns about profitability and revenue growth. Down to $9.06 from 52-week high of $25.04. Douglas A. McIntyre

Source: 24/7 Wall St. | 11 Jul 2008 | 8:01 pm

Anheuser drops opposition to InBev takeover

Anheuser-Busch dropped its opposition to a takeover by InBev, paving the way for a deal to create the world's largest brewer within a matter of days
Source: FT.com - US homepage | 11 Jul 2008 | 7:58 pm

Dunkelberg Says U.S. Small Business Confidence Is `Down'

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 7:52 pm

Fed Offers Fannie Mae (FNM) And Freddie Mac (FRE) Help, Investors Don't Care

The Fed offered to open it emergency discount window to Fannie Mae (FNM) and Freddie Mac (FRE) to offer them the money they may need to remain solvent. Investors were not convinced. Perhaps they do not think the Fed has the $77 billion in capital that some analysts think the companies will need. After the news, Freddie Mac was still trading down over 9% at $7.22 and Fannie Mae was off over 26% at $9.73. Douglas A. McIntyre

Source: 24/7 Wall St. | 11 Jul 2008 | 7:34 pm

On The Ball: Devil Rays Change Name, All-Star Game, Wimbledon

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 7:27 pm

Where to Find the Best Savings Rates (Deal of the Day)

In order to compete for deposits, banks are raising rates on interest-bearing accounts.

Source: SmartMoney.com | 11 Jul 2008 | 7:25 pm

Roche to drop HIV therapy research

Roche, one of the world's largest international pharmaceuticals groups, has decided to abandon research on medicines to treat HIV in a significant blow to doctors treating the spiralling international Aids epidemic
Source: FT.com - US homepage | 11 Jul 2008 | 7:01 pm

Feds Owe Ford (F) Almost $500 Million

Things have been so bad at Ford (F) that there is nothing left to cause its stock to rally. High gas prices have be undermining sales of its profitable SUVs and pick-ups. It has been slow to get into the fuel-efficient gas and hybird vehicles markets But, today Ford is up over 8%. Call it a government bail-out of sorts. Ford overpaid its taxes to the tune of $445 million. The Feds are giving it back. According to Reuters, the money is from interest owed "from tax overpayments in 1994, 1992, and the period 1983-1989." Maybe the IRS will do...

Source: 24/7 Wall St. | 11 Jul 2008 | 6:55 pm

Six firms fined in tobacco probe

Six retailers and tobacco firms agree to pay a maximum of £173.3m after admitting unlawful tobacco pricing practices.
Source: BBC News | Business | World Edition | 11 Jul 2008 | 6:44 pm

Broken Apple (AAPL) iTunes Servers Kill iPhone Activation

Who thought that Apple's (AAPL) iTunes operations would screw up the launch of the 3G iPhone? Nobody. That's who. But, it turnsout that to activate the iPhone, part of the process must be done through servers which host the iTunes service. Once the process would not work in the store, new buyers tried the process from work or home. No luck. According to the AP, "the iTunes servers were equally hard to reach from home, leaving the phones unusable except for emergency calls." No wonder so many people use RIM (RIMM) Blackberry smartphones. At least they work most of the...

Source: 24/7 Wall St. | 11 Jul 2008 | 6:38 pm

Software problems bug Apple's launch of new iPhone

Source: L.A. Times - Business | 11 Jul 2008 | 6:26 pm

Treasury Sec: No Bailout for Fannie, Freddie (The Invisible Hand)

Why can't Hank Paulson admit that we've already co-signed for Freddie and Fannie?

Source: SmartMoney.com | 11 Jul 2008 | 6:19 pm

Past Price Action Gives Glimpse of Stock's Future (Tradecraft)

Comparing current price action to the past can offer a glimpse of a stock's future.

Source: SmartMoney.com | 11 Jul 2008 | 6:02 pm

Yamada, Technical Analyst, Has 1175 Target for S&P 500

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 6:00 pm

Widespread Panic

Nearly a year into the credit crisis and four months after Bear Stearns imploded, panic has officially set in on Wall Street.

This week was a maelstrom of fear across the board. The Dow Jones industrials officially hit bear market territory, Iranian missile tests helped drive the price of oil to another record high, rumors and anxiety sent shares of Lehman Brothers so low that its name is nearly synonymous with Bear Stearns, and the two most important players in the mortgage market, Fannie Mae and Freddie Mac, appeared to be on the brink of becoming obsolete.

Investors have every right to be nervous. And the scariest part is there are no signs of abatement anytime soon. Panic only begets more panic.

The cliff dive that Fannie and Freddie shares took this week is particular cause for alarm. The government-sponsored entities borrow money at favorable rates in order to buy and repackage mortgages from issuing banks, thus freeing up the banks to make more loans. They then sell those repackaged securities as bonds and guarantee they'll be repaid.

It's nearly impossible to overestimate their importance to the function of the capital markets— they're the grease that keeps them running. They back or own more than half of the country's $12 trillion mortgage debt.

Nothing fundamentally changed at Fannie and Freddie this week. Rather, the sell-off was caused by a kind of awakening, brought on by comments by a former Federal Reserve board member, that the debts at the mortgage giants are now greater than their assets. Insolvency would likely lead to some kind of government rescue that would result in putting Fannie and Freddie in a conservatorship.

Such a scenario would leave shareholders with nothing. Fear of that becoming a reality sent shares of Fannie and Freddie reeling this week, with both of them losing nearly half their market value.

Interestingly, the Fannie and Freddie blowups are not being blamed on rumormongering short-sellers, as we've seen in the case of Bear Stearns and now Lehman Brothers. Their C.E.O.'s didn't appear on CNBC to deny the concerns and say everything is going to be all right. Rather, their sell-offs are based on a real set of particularly harrowing circumstances, and it's up to Washington to fix it.

As the debate over just how to handle wildfire-like rumors in today's highly reactive market continues, Lehman found itself once again squarely in the center of the rumor mill this week.

At the start of the week, the energy-pricing agency Platts inexplicably cut Lehman off from trading certain oil contracts. By Wednesday, Lehman was reportedly trading on its platform again.

But Thursday's rumors, and their subsequent quashing, sent Lehman shareholders into an unstoppable selling frenzy. Pimco and SAC Capital, two institutions that trade with Lehman, denied rumors that they had stopped dealing with the firm.

That did little to allay investor concerns, providing evidence that it's not the rumors that take down a company, but the perception they create even if they are known to be false. Lehman shares tumbled another 16 percent on Friday and are down 38 percent for the week. The panic over Fannie and Freddie caused even more panic across the broader financial sector, Lehman included.

What's going to happen to Fannie, Freddie, and Lehman? Will they survive, will they die a slow and painful death, or will the end come quickly and painlessly? When will oil peak and stocks bottom out?

Even the smart money doesn't know any of these answers, so it's pointless for the dumb money to speculate.

The only thing we do know is that Wall Street needs its Xanax.

Related Links
Kicking Bear When It's Down
Hedge Funds in Crosshairs
Order Out of Market Chaos

Source: Portfolio.com: Top 5 | 11 Jul 2008 | 6:00 pm

7 Funds Worth Their High Minimums (Fund Screen)

These offerings require shareholders to fork over big bucks to get in the door.

Source: SmartMoney.com | 11 Jul 2008 | 5:58 pm

`Looking East' Candidly Portrays East Asia in 1905

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 5:02 pm

Searching for diamonds in the rubble

This time last year it would have been a rare day that saw the sharemarket drop by more than 1 per cent. Now it's happening regularly. In the last 20 trading days alone 12 have been in the red, one saw no change and only seven...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

Liam Dann : Get ready to seize the good opportunities

When the going gets tough, don't get going - get smart. If Graeme Hart had gone into his shell and stopped investing during the dark days at the start of the 1990s he'd have missed the chance to nab the Government Printing Office...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

China leads global market slump

Forget the Olympics - China has already won one gold medal this year. It's the world's worst performing stock market, with share price falls in local currency terms of 47.6 per cent since the beginning of the year. The good news is...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

Brian Gaynor : Housing downturn a problem of ageing

Real Estate Institute figures for June, released yesterday, show that the downturn in the housing market has entered its second year showing no signs of abating. The first indication of a softening appeared in June last year when...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

An astute Angel at global finance table

Angel Gurria, head of the Organisation for Economic Co-operation and Development, the world's foremost economic and policy forum, is undoubtedly suave. He is a member of the only club in Mexico that plays cricket (Reformer Athletic...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

Russia's patriotic kvas drinkers say no to cola-nisation

Poet Alexander Pushkin wrote that Russians need drink like they need air. But we're not talking about vodka. The drink is kvas. And despite its humble folk origins, the fermented-bread drink brewed by Russians for over 1000 years...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

Property: Buy now or wait?

HOLD OFF Bargain-hunters beware: if you're tempted to leap into the rental property business right now - don't. That's the advice from Andrew King, Property Investors Federation vice-president and an experienced landlord who...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

NZ Oil & Gas finds black gold in a sea of red

Just over a year ago, New Zealand Oil & Gas barely had any analysts taking a regular interest, it hadn't paid a dividend for a decade and money was gushing out the door. And then, unlike much of the rest of New Zealand business...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

Seven buys stake in Packer's CMH

Kerry Stokes' Seven Network has taken a A$100 million ($128.2 million) stake in James Packer's Consolidated Media Holdings, a media report says. Seven, which is 44.9 per cent owned by Stokes, is believed to have acquired a 4.82...
Source: New Zealand Herald - Business | 11 Jul 2008 | 5:00 pm

Stocks Crash, But Still Aren't Cheap. So Steady As She Goes

From Clusterstock: The DOW dipped below 11,000 this morning for the first time in two years. Worse, the stock market has now been flat for the better part of a decade. Normally, long-term investors would be happy about such events: weakness creates an opportunity. Unfortunately, since stocks were so expensive to begin with, they're still not cheap.

Source: 24/7 Wall St. | 11 Jul 2008 | 4:53 pm

Sinosteel raises stake in Midwest

China's state owned Sinosteel buys a majority stake in Australian iron ore miner Midwest.
Source: BBC News | Business | World Edition | 11 Jul 2008 | 4:47 pm

AMD (AMD): Darling Of The Dead Stock Pool Takes Another Write-Down

When AMD (AMD) bought graphics chip maker ATI, it thought it was getting a deal. Nothing of the sort happened. AMD ended up with over $5 billion in debt. Larger rival Intel (INTC) jumped on AMD with better tech and a price war. AMD went to hell over a year ago, and it is not coming back. Today the company said it would take more write-offs for the value of ATI and some restructuring, which usually means firing people. The sum of the total charge will be $948 million. Since the firm's market cap is only $2.9 billion, the write-down...

Source: 24/7 Wall St. | 11 Jul 2008 | 4:36 pm

Fine Violins Fund Invests in 18th, 19th Century Instruments

Source: Bloomberg - All Podcasts | 11 Jul 2008 | 4:26 pm

Dodging The Dow Drop: Coke (KO), GE (GE), And Cat (CAT)

Twenty-seven of the Dow components are down. And, three are playing defense in an brutal market: Coca-Cola (KO), GE (GE), and Caterpillar (CAT). Each of these is up a modest amount. With the DJIA off over 200 points, financial stocks in the index are taking on more water. AIG (AIG) is off almost 8%. Bank of America (BAC) is down almost 7%. Boeing (BA) is off nearly 5%, even after an upbeat forecast about its next 20 year prospects. Coke should be holding its own. Most of what it sells is inexpensive, global, and easy for the consumer to find....

Source: 24/7 Wall St. | 11 Jul 2008 | 4:22 pm

Dodging The Dow Drop: Coke (KO), GE (GE), And Cat (CAT)

Source: 24/7 Wall St. | 11 Jul 2008 | 4:21 pm

Funds That Won't Break Your Budget (Fund Screen)

These well-run, low-minimum funds are open to investors big and very small.

Source: SmartMoney.com | 11 Jul 2008 | 4:05 pm

Blog: How to fix Fannie Mae and Freddie Mac: Nationalize 'em

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

Fannie and Freddie Freak-Out

Worries are growing that the nation's two biggest buyers of mortgages, Fannie Mae and Freddie Mac—the backbone of the housing industry—will need to raise new capital quickly or face a takeover by the government.

Shares of both companies extended a steep slide today.

Treasury Secretary Hank Paulson sought to pour cold water on the notion of an imminent nationalization of Fannie and Freddie, saying that "today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission."

The White House sought to pass the buck to Congress, saying that the most important thing was for the Senate to pass a housing bill that would overhaul the oversight of the two mortgage giants.

But Congress is part of the problem, Yves Smith says on the Naked Capitalism blog. The reaction in the market, Smith says, "is pushback, pure and simple, against efforts to finesse a Federal bailout of housing by pushing as much as possible on to Fannie and Freddie, rather than set up new programs so the costs would be explicit."

Shares of Fannie Mae were down 22 percent today while Freddie Mac shares erased steep losses to end the day down just 3 percent.

And it's clear that some action will be needed soon. Earlier this week, the former president of the Federal Reserve Bank of St. Louis, William Poole, said that both Fannie and Freddie are technically insolvent.

Fannie and Freddie are the foundation of the housing market. By buying mortgages, they have lowered the costs of borrowing. Any further retrenchment by them would make mortgages more costly and prolong a deep housing slump.

The two also have some $5 trillion in mortgage-related debt—about half of the mortgage debt market.

Absorbing that debt, Dwight Cass on Breakingviews.com notes, would push the government's total liabilities to the level of the U.S. gross domestic product.

Still, he says, nationalization "appears the least-bad scenario."

"If the government does take over the G.S.E.'s, it should recapitalize and privatize them again as quickly as possible."

Related Links
The Myth of the Walk Aways
The Fed Turns Up the Tap
Memo to the Next President

Source: Portfolio.com: Top 5 | 11 Jul 2008 | 3:00 pm

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