Teva to expand in U.S., Europe via $7.5 billion deal for Barr

Teva Pharmaceutical agrees to buy smaller generics rival Barr Pharmaceuticals Ifor $7.46 billion plus about $1.5 billion in assumed debt.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 12:19 pm

Aberdeen chief backs ailing UK banks

Aberdeen Asset Management, one of the City's most powerful institutional investors, publicly backed the rebuilding of Britain's tattered banking sector today but gave warning that executives need to learn the lessons of what has been "a very serious crisis".
Source: Latest Business News from Times Online | 18 Jul 2008 | 12:17 pm

Teva to buy rival drugmaker Barr for $7B

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 12:13 pm

Teva to buy Barr for $7.46 billion, boost generic lead

NEW YORK (Reuters) - Teva Pharmaceutical Industries said on Friday it would buy rival generic drugmaker Barr Pharmaceuticals Inc for $7.46 billion to expand its leadership in the U.S. market and fortify its presence in Europe.

Source: Reuters: Business News | 18 Jul 2008 | 12:11 pm

Stocks may get Citi lift

U.S. stock futures turned higher Friday after Citigroup's quarterly loss turned out to be not quite as bad as Wall Street expected.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 12:10 pm

IStar: credit market deterioration impacts Q2 earnings

(Reuters) - IStar Financial Inc , which lends primarily to real estate-related businesses, said it expects to post a second-quarter operating loss, excluding a gain from asset sales, hurt by higher loan loss provisions, mark-to-market impairments and goodwill write-offs.

Source: Reuters: Business News | 18 Jul 2008 | 12:09 pm

Manpower second-quarter net falls 33 percent

NEW YORK (Reuters) - Employment services company Manpower Inc reported a 33 percent decline in quarterly profit on Friday, reflecting tax-related benefits in the year-earlier period, but the results beat expectations.

Source: Reuters: Business News | 18 Jul 2008 | 12:03 pm

Google shares slide on disappointing results

Shares of Google Inc. slipped more than 7% in premarket trading, as its second-quarter results fell short of many analysts’ estimates and sparked some concern about the search giant’s performance amid the U.S. economic slowdown.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 12:03 pm

Oil recovers after four-day slump

Oil prices move back above $130 a barrel after sliding more than 11% in the past four days.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 12:01 pm

Finishing line?

A seven-year battle over trade may be near the end
Source: BBC News | Business | World Edition | 18 Jul 2008 | 12:00 pm

10 Things Your Bank Won't Tell You (10 Things)

We've got 10 secrets that your bank doesn't want you to know.

Source: SmartMoney.com | 18 Jul 2008 | 11:58 am

Schlumberger profit tops estimate; shares rise

HOUSTON (Reuters) - Schlumberger Ltd , the world's largest oilfield services company, posted better-than-expected quarterly profit on Friday, driven by energy companies' brisk spending on oil and gas exploration.

Source: Reuters: Business News | 18 Jul 2008 | 11:57 am

Schlumberger profit tops estimate; shares rise (Reuters)

Reuters - Schlumberger Ltd , the world's largest oilfield services company, posted better-than-expected quarterly profit on Friday, driven by energy companies' brisk spending on oil and gas exploration.
Source: Yahoo! News: Business | 18 Jul 2008 | 11:57 am

European Commission hits Intel with new competition claims

Intel hit back today at fresh anti-trust charges levelled by European regulators.
Source: Latest Business News from Times Online | 18 Jul 2008 | 11:57 am

European Slowdown Hurting U.S. Multinationals (Foreign Affairs)

U.S.-based multinationals are in jeopardy as Europe shows signs of slowdown.

Source: SmartMoney.com | 18 Jul 2008 | 11:55 am

Google falls short

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 11:54 am

Citi's $2.5bn loss less than feared

Citigroup shares rose in pre-market trading after the largest US bank by assets reported second quarter results that were not as bad as analysts feared. It lost $2.5bn over the three months, suffered more than $7.2bn in writedowns and saw credit costs rise by $4.5bn
Source: FT.com - US homepage | 18 Jul 2008 | 11:52 am

Indications: U.S. stock futures rebound on Citigroup results

Citigroup reports smaller-than-expected second-quarter loss, which helps counterbalance lackluster results from Merrill Lynch and technology giants Google and Microsoft.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 11:52 am

Honeywell second-quarter profit up 18 percent

BOSTON (Reuters) - Honeywell International Inc on Friday reported quarterly profit jumped 18 percent, topping expectations, and raised its full-year earnings forecast, citing strong demand for aircraft electronics and environment and security control systems used in large commercial buildings.

Source: Reuters: Business News | 18 Jul 2008 | 11:50 am

Top Pre-Market Analyst Upgrades (AVR, BLL, CE, ETR, HCP, HR, MRK, PTNR, PTEN, UAUA, VSE)

These are not all of the upgrades or positive analyst calls seen this morning but these are some of the top calls seen this Friday morning: Aventine Renewable (NYSE: AVR) Raised to Buy from Neutral at UBS. Ball Corp (NYSE: BLL) Raised to Buy from Neutral at Goldman Sachs. Celanese (NYSE: CE) Started as Outperform at Credit Suisse. Entergy (NYSE: ETR) Raised to Buy from Hold at Jefferies. HCP (NYSE: HCP) Raised To Buy From Neutral By Goldman Sachs. Healthcare Realty Trust (NYSE: HR) Started as Outperform at Wachovia. Merck (NYSE: MRK) Started as Buy at Citigroup. Partner Communications (NASDAQ:...
Source: 24/7 Wall St. | 18 Jul 2008 | 11:48 am

London Markets: Banks drive gains for London shares

LONDON (MarketWatch) -- Shares in Royal Bank of Scotland and other banks gained sharply on Friday afternoon as investors eyed better-than-expected earnings from U.S. financial giant Citigroup.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 11:48 am

Schlumberger profit jumps 13%

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 11:46 am

Top Analyst Downgrades (BBY, KO, EBAY, GILD, IGT, MAC, SUN, TSO, VRTU)

These are not all of the Downgrades or negative analyst calls seen this morning but these are some of the top calls seen this Friday morning: Best Buy (NYSE: BBY) Cut to Outperform from Top Pick at RBC Capital. Coca Cola (NYSE: KO) removed from Goldman Sachs Conviction Buy List. EBay (NASDAQ: EBAY) Cut to Neutral from Buy at Goldman Sachs. Gilead Sciences (NASDAQ: GILD) Cut to Hold from Buy at Jefferies. International Game Technology (NYSE: IGT) Cut to Hold from Buy at Citigroup; Cut to Perform at Oppenheimer. Macerich (NYSE: MAC) Cut To Neutral From Buy By Goldman Sachs...
Source: 24/7 Wall St. | 18 Jul 2008 | 11:46 am

Movers & Shakers: Friday's biggest gaining and declining stocks

Among the companies whose shares are expected to see active trade in Friday's session are Barr Laboratories, Citigroup, Google and Advanced Micro Devices.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 11:40 am

Citigroup has $2.5 bln loss, smaller than expected (Reuters)

Reuters - Citigroup Inc , the largest U.S. bank, on Friday posted a smaller-than-expected, quarterly loss, despite some $11.7 billion of write-downs and credit losses tied to deteriorating capital markets and the slumping economy.

Source: Yahoo! News: Business | 18 Jul 2008 | 11:33 am

Citigroup has $2.5 bln loss, smaller than expected

NEW YORK (Reuters) - Citigroup Inc, the largest U.S. bank, on Friday posted a smaller-than-expected, quarterly loss, despite some $11.7 billion of write-downs and credit losses tied to deteriorating capital markets and the slumping economy.

Source: Reuters: Business News | 18 Jul 2008 | 11:33 am

Treasury may relax fiscal rules

Treasury officials are looking at ways of relaxing Gordon Brown's so-called fiscal rules on government finances.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 11:31 am

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 11:31 am

Wall Street heads to higher open after Citi report

Wall Street headed for a higher open Friday after Citigroup Inc. issued a better-than-expected earnings report, offsetting disappointing results from several other big companies. The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:29 am

Oil prices in modest rally after dizzying plunge

Oil prices rallied on Friday after three days of heavy falls that pulled the market down by 15 dollars on worries over economic growth and slowing demand, traders said. New...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:27 am

Citigroup surprises Wall Street

Citigroup booked a $2.5 billion quarterly loss Friday, but surprised many as it took fewer painful marks against its books and stayed ahead of Wall Street's dreary earnings projections.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 11:26 am

Honeywell 2Q profit rises 18 percent

Honeywell International Inc. says its second quarter earnings rose 18 percent, driven by higher sales in its aerospace and building control systems businesses. The Morristown, N.J.-based
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:25 am

Europe Markets: Banks lead European shares to modest gains; food firms drop

European shares trade higher, gaining as better-than-expected results across the Atlantic from banking giant Citigroup offset some downbeat news on sales and earnings trends from supermarket group Delhaize and cosmetics firm L’Oreal.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 11:25 am

Bank failures: What you need to know

Despite the recent headlines, bank failures are extremely uncommon. But if you're concerned, here's what you need to know.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 11:21 am

Teva to buy Barr Pharma for more than $7 billion

Israeli drugmaker Teva Pharmaceutical says it will buy rival generic drug company Barr Pharmaceuticals for more than $7 billion, in a move to expand its presence in U.S. and Eastern...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:16 am

Honeywell 2nd-qtr profit up 18 pct, hikes forecast

BOSTON (Reuters) - Diversified U.S. manufacturer Honeywell International Inc said on Friday that quarterly profit rose 18.3 percent on strong demand for aircraft electronics and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:13 am

Emerging Markets May Be Kings Of Inflation

The IMF is worried to death that emerging markets are facing substantial inflation and are doing nothing about it. If the agency is right, some of the most promising economies in the world could badly cripple themselves by pursing growth at any cost.
Source: 24/7 Wall St. | 18 Jul 2008 | 11:07 am

Mattel second-quarter profit falls, but tops view (Reuters)

Reuters - Mattel Inc posted a better-than-expected quarterly profit on Friday as higher sales of brands such as Speed Racer and products tied to movies like "Kung Fu Panda" offset a decline in demand for Barbie.
Source: Yahoo! News: Business | 18 Jul 2008 | 11:04 am

Mattel second-quarter profit falls, but tops view

NEW YORK (Reuters) - Mattel Inc posted a better-than-expected quarterly profit on Friday as higher sales of brands such as Speed Racer and products tied to movies like "Kung Fu Panda"...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:04 am

Mattel second-quarter profit falls, but tops view

NEW YORK (Reuters) - Mattel Inc posted a better-than-expected quarterly profit on Friday as higher sales of brands such as Speed Racer and products tied to movies like "Kung Fu Panda" offset a decline in demand for Barbie.

Source: Reuters: Business News | 18 Jul 2008 | 11:04 am

Europe reverses losses after Citi results

European markets reversed early losses on Friday after forecast beating results from Citigroup in the US sparked a rally in banking stocks offsetting weakness in commodities and retailers. France's Natixis...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 11:04 am

Wall Street heads to higher open on mixed earnings

Wall Street headed for a higher open Friday after Citigroup Inc. issued a better-than-expected earnings report, offsetting disappointing results from several other big comapnies. Futures
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:01 am

iStar Financial Provides Estimates for Second Quarter Earnings

Preliminary Earnings Estimates Reflect Increased Loan Provisions Company to Recognize $300 Million of Gains on Sale of Assets Company Maintains Liquidity of $1.4 Billion at...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:00 am

[video] Daniel Forbush, CFO of General Metals Corp. Discusses Drilling Program and Key Milestones in Exclusive Interview on WallSt.net's 3-Minute Press Show

NEW YORK, July 18 /PRNewswire-FirstCall/ -- General Metals Corp. (OTC Bulletin Board: GNMT), a mineral resource exploration company that engages in the acquisition and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:00 am

Universal Capital Management, Inc. Adds the Constellation Group to its Group of Portfolio Companies

WILMINGTON, Del., July 18 /PRNewswire-FirstCall/ -- Universal Capital Management, Inc. (OTC Bulletin Board: UCMT.OB), a Wilmington, Delaware business development company...
Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Jul 2008 | 11:00 am

Dollar drifts as caution returns

The dollar drifted on Friday as traders digested results from Citigroup and waited for Wall Street's reaction to those numbers and a $9bn writedown from Merrill Lynch.The dollar was 0.1 per cent higher...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 10:58 am

Visa reprieve for TNK-BP chief

Robert Dudley, the embattled chief executive of TNK-BP, on Friday won a temporary reprieve from Russian immigration officials who granted a him a 10-day visa one day before he would have been forced to...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 10:57 am

Citi's $2.5bn loss less than feared

NEW YORK, July 18 - Citigroup, the largest US bank, on Friday posted a smaller-than-expected $2.5bn second-quarter loss, despite billions of dollars of write-downs and credit losses tied to deteriorating...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 10:56 am

Citigroup swings to loss on $7.2 bln writedown

NEW YORK (MarketWatch) -- Citigroup, the largest U.S. bank by assets, said on Friday that it lost money for the third consecutive quarter after writing down $7.2 billion of investments related to fixed income weakness and consumer credit woes.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 10:55 am

Kenya court halts biofuel project

A judge in Kenya orders that a project to grow sugarcane on a river delta be halted.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 10:45 am

Freddie Mac mulling $10 bln share offer: report

(Reuters) - Mortgage giant Freddie Mac is considering raising capital by selling as much as $10 billion in new shares to investors, The Wall Street Journal reported, citing people familiar with the matter.

Source: Reuters: Business News | 18 Jul 2008 | 10:43 am

Futures cut losses after Citigroup results (Reuters)

Reuters - Stock index futures pared losses on Friday after Citigroup Inc posted quarterly results that calmed some of the worries about the impact of the credit crisis on the No. 1 U.S. bank.

Source: Yahoo! News: Business | 18 Jul 2008 | 10:42 am

Futures cut losses after Citigroup results

NEW YORK (Reuters) - Stock index futures pared losses on Friday after Citigroup Inc posted quarterly results that calmed some of the worries about the impact of the credit crisis on the No. 1 U.S. bank.

Source: Reuters: Business News | 18 Jul 2008 | 10:42 am

Freddie Mac's (FRE) New Stock Sales, A Knife In Shareholder Hearts

It now appears that Freddie Mac (FRE) will raise about $10 billion. The only trouble with that is that its current market cap is only $6 billion. For shareholders, the news is almost as bad as a government takeover.
Source: 24/7 Wall St. | 18 Jul 2008 | 10:40 am

FTSE held back by miners

London equities fell on Friday, with miners keeping the index mired in losses. Financial stocks found support as traders studied more closely-watched results from the sector in the US. The FTSE 100 lost...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 10:39 am

UK internet shopping on the rise

UK shoppers spent 17 pence in every pound online in the first half of the year, claims a retail report.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 10:37 am

Asia Markets: Stocks end mixed on late surge in China, India

Asian markets end the week on a mixed note, with bargain-buyers snapping up Mumbai shares as well as Chinese stocks in Shanghai and Hong Kong. But Japanese stocks erase early gains as investors turn cautious following a handful of high-profile disappointments among U.S. financial results reported late Thursday

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 10:26 am

Merrill Lynch (MER) And Citigroup (C) Move To The Bottom Tier Of US Financial Firms

At the start of the year, many Wall St. analysts and much of the media give the impression that the current financial crisis would pull down all large US banks and brokerages. With the recovery, the fortunes of all would improve. It has not turned out that way. As the second quarter earnings season progresses, it is clear that there are three tiers of big financial companies. Based on Merrill Lynch's (MER) earnings, it has been pushed down to the bottom level. Citgroup's (C) $2.5 billion loss and threats of much worse results have pulled it under as well.
Source: 24/7 Wall St. | 18 Jul 2008 | 10:20 am

Currencies: Dollar mixed as equities slip, oil rebounds

The U.S. dollar falls slightly against the euro but posts small gains against other major counterparts as traders weigh the outlook for the troubled financial sector and keep an eye on oil prices.

Source: MarketWatch.com - Top Stories | 18 Jul 2008 | 10:20 am

Branson's Virgin Blue cuts Australia flights

Sir Richard Branson's Australian airline, Virgin Blue, announced today it would ground a further two aircraft as it tries to ease the pinch of soaring fuel bills. The three per cent reduction in route capacity brings overall cuts by Virgin Blue to 12 per cent since June.
Source: Latest Business News from Times Online | 18 Jul 2008 | 10:17 am

Mortgage lending slides as banks rein in

Figures show that the traditionally buoyant summer market has done nothing to boost the mortgage market, with gross lending down 3pc from May to June - a slide of 32pc on the previous year.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 10:10 am

Mortgage lending slides as banks rein in

Figures show that the traditionally buoyant summer market has done nothing to boost the mortgage market, with gross lending down 3pc from May to June - a slide of 32pc on the previous year.
Source: Telegraph Business | 18 Jul 2008 | 10:10 am

Oil rebounds from 3-day slide

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 9:58 am

Mortgage drought deepens on 32% lending fall

UK mortgage lending fell by 32 per cent in the year to June and is will worsen further if the Bank of England raises interest rates in a bid to combat inflation, mortgage lenders warned today.
Source: Latest Business News from Times Online | 18 Jul 2008 | 9:57 am

L'Oral shares slide after poor sales

Shares in L'Oral fell sharply on Friday after disappointing sales in the first six months of the year led the the world's biggest cosmetics company to reduce its 2008 growth forecast.Although sales improved...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 9:54 am

Merrill posts $4.9 billion loss, sells Bloomberg stake

NEW YORK (Reuters) - Merrill Lynch & Co posted a much larger-than-expected $4.89 billion quarterly loss on Thursday after writing down soured debt, and unveiled plans to sell billions of dollars of assets -- including a part of its lucrative brokerage business -- to shore up capital.

Source: Reuters: Business News | 18 Jul 2008 | 9:49 am

Google (GOOG): Once Goliath, Now Ordinary

Google's (GOOG) earnings disappointed Wall St. and pushed the stock down nearly 8%, but the message from the numbers is more profound than a little shortfall. Google's net was up 35%. The firm reported revenue of $5.37 billion for the quarter, an increase of 39% compared to the second quarter of 2007. From 2004 and 2005, Yahoo!'s (YHOO) revenue rose 47%. That is not so long ago.
Source: 24/7 Wall St. | 18 Jul 2008 | 9:45 am

Over the rainbow

British teenagers gear up for a globalised age
Source: BBC News | Business | World Edition | 18 Jul 2008 | 9:42 am

Chip maker AMD posts further loss

Chip maker AMD reports its seventh quarterly loss in a row, days after strong profits from Intel.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 9:36 am

Hard Rock wages 'below minimum'

Staff at London's Hard Rock Cafe are on salaries of less than half the national minimum wage, the BBC finds.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 9:21 am

Dennis turns over new leaf for Butler & Tanner

Maverick publisher plans to reopen UK's largest colour printer, reports Emma Thelwell.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 9:05 am

Dennis turns over new leaf for Butler & Tanner

Maverick publisher plans to reopen UK's largest colour printer, reports Emma Thelwell.
Source: Telegraph Business | 18 Jul 2008 | 9:05 am

Microsoft results hit its shares

Microsoft's quarterly earnings and predictions for the next three months are worse than expected, hitting the software firm's shares.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 9:04 am

Starbucks Releases List Of 600 Stores To Be Shut, A Tombstone For Employees

Starbucks (SBUX) founder and CEO Howard Schultz had his company release the list of 600 stores that coffee chain would close. It is a tombstone for the 12,000 company employees that Starbucks will push out of work and a monument to the firm's arrogance.
Source: 24/7 Wall St. | 18 Jul 2008 | 9:04 am

Asian stocks reverse early gains

Major Asian equities found little direction on Friday with concerns over the credit crisis still at the forefront of investors minds as were anxieties over slowing economies.Disappointing earnings from...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 9:01 am

IBM profit surges past estimates

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 8:57 am

Darling under pressure as debt hits record high

The Treasury sank deep into the red over the past three months as the economic downturn undercut tax receipts forcing it to borrow record amounts, official figures showed this morning.
Source: Latest Business News from Times Online | 18 Jul 2008 | 8:55 am

Freddie mulling $10B stock sale - report

Battered U.S. mortgage finance giant Freddie Mac is mulling a plan to raise capital by selling up to $10 billion in new shares, according to a published report.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 8:48 am

Barclays share sale raises £4.5bn

Barclays raises £4.5bn from investors to bolster its finances but ordinary shareholders are lukewarm on the plan.
Source: BBC News | Business | World Edition | 18 Jul 2008 | 8:40 am

Oil rebounds while gold consolidates

Oil prices staged a rebound on Friday after dropping below the $130 level in the previous session while gold prices traded in a narrow range. Nymex August West Texas Intermediate rose $1.71 to $131.00...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Jul 2008 | 8:40 am

Oil rebounds while gold consolidates

Oil prices staged a rebound after dropping below the $130 level in the previous session while gold prices traded in a narrow range
Source: FT.com - US homepage | 18 Jul 2008 | 8:40 am

Microsoft hit after earnings miss

Shares of Microsoft Corp. dropped more than 5 percent in after-hours trading after the software giant posted a fiscal fourth-quarter profit that fell short of Wall Street's estimates as it forecast lower-than-expected revenue for the following quarter.

Source: Business and financial news - CNNMoney.com | 18 Jul 2008 | 8:02 am

Merrill Lynch's £4.7bn loss dwarfs estimates

Wall Street giant reveals asset sell-off to raise $8bn as JP Morgan warns of worsening mortgage crisis.
Source: Telegraph Business | 18 Jul 2008 | 8:01 am

John Lewis sales lifted by bargain hunters

Cost-conscious shoppers have reversed weeks of falling trade at John Lewis after the department store's clearance sale drove revenue up 5.9 per cent and its sister company, Waitrose, reported soaring sales of cake and wine.
Source: Latest Business News from Times Online | 18 Jul 2008 | 7:53 am

Media Digest 7/18/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, analysts looking at results from Google (GOOG), Microsoft (MSFT), and IBM (IBM) are cautiously optimistic about upcoming tech earnings. Reuters writes that Merrill Lynch (MER) posted a loss of $4.9 billion and sold its share of Bloomberg. Reuters writes that Yahoo! (YHOO) may go back to News Corp (NWS) for a potential deal if it cannot make progress with Time Warner's (TWX) AOL. The Wall Street Journal reports that Freddie Mac (FRE) may try to raise $10 billion.. The Wall Street Journal writes that AMD's (AMD) CEO was replace after several quarters of bad results. The company...
Source: 24/7 Wall St. | 18 Jul 2008 | 7:44 am

Oil prices firm after 10% drop to below $130$

An explosion in Nigeria sent oil rising $2 to $131.29 today after the price of crude had fallen 10% in a week to below $130$
Source: Latest Business News from Times Online | 18 Jul 2008 | 7:41 am

Freddie Mac mulling $10 bln share offer: report (Reuters)

Reuters - Mortgage giant Freddie Mac is considering raising capital by selling as much as $10 billion in new shares to investors, The Wall Street Journal reported, citing people familiar with the matter.
Source: Yahoo! News: Business | 18 Jul 2008 | 7:04 am

Financing woes are all too reel for Hollywood studios

Hollywood is quickly losing its grip on the kind of easy money once readily available through Wall Street.

The collapse of Paramount Pictures' $450-million film financing deal underscores how dramatically the global credit crunch is prompting weary investors and several industry-friendly banks to shy away from a popular form of funding that has fueled Hollywood's production growth in recent years.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

Google, Microsoft take a hit on Wall Street

Nervous investors penalize two of the planet's most powerful technology companies for showing some financial strain from the faltering economy.

Nervous investors on Thursday penalized two of the planet's most powerful technology companies, Google Inc. and Microsoft Corp., for showing some financial strain from the faltering economy.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

House panelists seek opt-in rule for Web tracking

A key House lawmaker said Thursday that Internet service providers should be prohibited from tracking customers' Web activities to deliver targeted ads without those users' clear approval.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

A brilliant outlook for 'The Dark Knight'

Strong buzz may propel the caped crusader to a record opening weekend.

"The Dark Knight," the long-awaited superhero sequel from Warner Bros. and Legendary Pictures, opens today with several records -- official or otherwise -- already banked.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

AMD chief is out after latest loss

Hector Ruiz is being replaced as CEO by Dirk Meyer, the struggling chip maker's chief operating officer.

Advanced Micro Devices Inc. Chief Executive Hector Ruiz, the tech industry's most prominent Latino CEO, was forced out Thursday after the chip maker posted a loss for the seventh consecutive quarter.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

Congressional committee will probe health insurers that cancel sick members' coverage

A congressional committee will investigate health insurers' practice of canceling coverage when policyholders get sick, its chairman said Thursday.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

Oil prices drop for third straight day to below $130 a barrel

Analysts point to a mind-set change as crude falls further.

Oil prices tumbled for the third straight day Thursday, taking the cost of crude below $130 a barrel for the first time in six weeks and signaling a possible end to a bull run that seemed intent on hitting $150 this summer.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

California fines two health plans $13 million

Anthem Blue Cross and Blue Shield also agree to restore coverage to patients whose coverage was canceled after they became ill.

Anthem Blue Cross and Blue Shield -- two of the state's biggest health plans -- agreed Thursday to pay a total of $13 million in fines and to offer new health coverage to more than 2,200 Californians the companies dropped after they became ill.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

Mattel wins important verdict in Bratz dolls case

Barbie maker Mattel may be on verge of a large damage award.

In the battle of the doll makers, the house that Barbie built won a sweeping court victory Thursday, accessories and all.

Source: L.A. Times - Business | 18 Jul 2008 | 7:00 am

Barclays foreign investors raise stakes to 16%

Qataris are now Barclays' largest shareholders, after the majority of existing investors snubbed the bank's £4.5 billion cash call. New Asian and Middle East investor now own 16 per cent of Britian's third largest bank.
Source: Latest Business News from Times Online | 18 Jul 2008 | 6:41 am

Reserve Bank tipped to hold rates ahead of September cut

The Reserve Bank is expected to leave interest rates on hold next Thursday, but a 25-point cut is forecast within the next two months as a stalling economy outweighs rising inflation concerns. The RBNZ's Official Cash Rate is at...
Source: New Zealand Herald - Business | 18 Jul 2008 | 4:30 am

Roping Off the V.I.P. Loan Scandal

WASHINGTON—With Congress grappling with housing legislation and a proposed rescue of Fannie Mae and Freddie Mac, the window is narrowing for reform in the wake of the Countrywide V.I.P.-loan scandal.

"I think it dies," a prominent Wall Street lobbyist said about calls for more disclosure and reform. "It will land in one of those gray areas, and people will move on."
 
Indeed, leaders in both the House and Senate are signaling that they have no immediate appetite for tackling new standards to shine more light on the terms of lawmakers' home loans.
 
It was the terms of loans to two Senators—Democrats Chris Dodd of Connecticut and Kent Conrad of North Dakota—that set off a firestorm on Capitol Hill after Porfolio.com reported last month that they had received discounts on two loans each as part of a program the mortgage lending giant maintained for powerful borrowers. The most recent issue of Condé Nast Portfolio reports how the Countrywide practice extended beyond Dodd and Conrad, involving congressmen, judges, and journalists, all in an attempt by Countrywide to curry favor
 

Countrywide's V.I.P. Club An exclusive look at the Countrywide Financial loan scandal.

The revelation about the senators underscored a longstanding loophole in the personal financial disclosure requirements for members of Congress. While lawmakers are required to annually report their financial assets—disclosing their values in broadly drawn ranges—they do not have to divulge anything about their residences.
 
That is a loophole that needs to be eliminated, government watchdog groups argue.
 
"There are many good reasons the public should know more about their elected representative's homes and how they finance them," said Massie Ritsch, spokesman for the Center for Responsive Politics. "Excluding their primary asset and liability from their financial reports doesn't make much sense, especially in light of the special treatment some lawmakers have gotten from their lender."
 
To sew up the dodge in the disclosures rules, John Cornyn, the top Republican on the Senate Ethics Committee, last month offered an amendment to the sweeping housing bill crawling through Congress. The two-page amendment, which also drew support from Barbara Boxer, who is chairwoman of the ethics panel, and its other four members, simply required Senators to report the terms of their home mortgages.
 
But the proposal was ruled unrelated to the broader package, blocking its consideration.

"This appears to be a loophole, and there's no reason this shouldn't be disclosed," Cornyn spokesman Brian Walsh said. "It would be a simple fix." He said Cornyn will look for another legislative vehicle to move the provision.

Amid the controversy, Politico.com contacted the offices of all 100 Senators, asking them to voluntary disclose how they received their mortgages, from whom, and if they received preferential treatment. The web site eventually received responses from every office, and the survey uncovered no new special deals.
 
The issue has received even less attention in the House. Republicans there have used the scandal as a messaging point against the housing bill, which they charge is a bloated giveaway to reckless lenders and borrowers. One conservative group opposed to the measure called it the "Dodd-Countrywide Mortgage Bailout Bill."
 
But no one in the lower chamber is moving to change House rules to beef up disclosure standards.
 
"There's nothing wrong with doing that, and we ought to discuss it," Steny Hoyer, the House Majority Leader, told Portfolio.com.
 
But he said any reform would have to wait until January, when the House opens up its rules to approve them anew for the next Congress. A spokesman for John Boehner, the House Minority Leader, said there has been no talk among Republicans of trying to force Democrats' hand on the issue in the meantime.
 
By then, barring more blockbuster revelations or tough action from the Senate ethics inquiry into Dodd and Conrad, any interest in reform likely will have petered out.
 
That result would be in line with the fallout from previous controversies over public officials' home loans.
 
In 2002 the Washington Post reported that Jim Moran, a Democratic Congressman from Northern Virginia, four years prior had secured a home refinancing package from MBNA that was the largest that the credit card lender had handed out that year. Experts called its terms unusually beneficial. Four days after finalizing the loan, Moran became the lead Democratic cosponsor of a bill the company was pushing to tighten bankruptcy standards - a development the lawmaker called totally unrelated. As the result of a ceasefire between Democrats and Republicans, the House ethics committee declined to investigate the arrangement.
 
And in 1999, as Hillary Clinton was eyeing her run for a Senate seat from New York, the Clintons arranged for Democratic fundraiser Terry McAuliffe to guarantee the $1.35 million mortgage for their house in Chappaqua. Ethics experts said the arrangement passed muster, though McAuliffe's intervention would likely help the First Family, then struggling with legal debts, to secure a lower interest rate than they otherwise would have qualified for, and the White House declined to disclose what interest McAuliffe would earn. The public relations backlash compelled the Clintons to abandon the plan and seek a conventional mortgage instead.

Last summer, a watchdog group charged that Senator Lisa Murkowski, an Alaska Republican, received a sweetheart deal buying a parcel of land from a campaign contributor for well below its fair market value. Murkowski never disclosed the transaction on her public report, arguing that because she intended to build her residence there, it fell in the exemption. She denied any wrongdoing, but in the face of an ethics complaint from the group and mounting public criticism, she sold the land back.

Craig Holman, a lobbyist for the government watchdog Public Citizen, said given the pileup of recent loan-related scandals, Congress needs to close the disclosure loophole. And while action is increasingly unlikely this year, he said he would push lawmakers to act at the start of next year.

"As more and more members of Congress get caught, I can certainly see the 111th Congress wanting to put a lid on this," he said.


 
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Angelo's Many 'Friends'
Angelo's Fannie Pack


Source: Portfolio.com: Top 5 | 18 Jul 2008 | 4:00 am

Woolies losing NZ market share to Foodstuffs, says analyst

Woolworths is losing market share to local cooperative Foodstuffs in the battle of the two New Zealand supermarket operators, according to JPMorgan analyst Shaun Cousins. The duopoly controls virtually all of New Zealand's grocery...
Source: New Zealand Herald - Business | 18 Jul 2008 | 3:00 am

Capital + Merchant receivers slash estimated investor return

Receivers for finance company Capital+Merchant Finance have slashed the amount they estimate is recoverable for investors to 8c in the dollar. C+M Finance, along with subsidiary Capital+Merchant Investments, was placed in receivership...
Source: New Zealand Herald - Business | 18 Jul 2008 | 2:45 am

SEC to grant some leniency on short sales

US regulators said they would grant some leniency to certain market makers who sell stocks short, responding to pressure from fund managers and brokerages to clarify how new restrictions on the practice would work
Source: FT.com - US homepage | 18 Jul 2008 | 2:19 am

ACP Media to sell NetGuide magazine

ACP Media announced today that it had entered into an agreement to sell NetGuide magazine and the website www.netguide.co.nz to privately owned company Action Media. The agreement takes effect immediately and will see the September...
Source: New Zealand Herald - Business | 18 Jul 2008 | 2:10 am

Air NZ's new Beijing service takes off tonight

Air New Zealand's non-stop service to Beijing is taking off tonight, as the airline looks to expand its operations into the world's fastest growing economy. The airline is using its Boeing 777-200ER aircraft to fly the route, with...
Source: New Zealand Herald - Business | 18 Jul 2008 | 2:00 am

Record rise in NZ home affordability - report

Falling house prices, coupled with lower interest rates have driven the biggest improvement in home affordability in the past six years. The Wizard Home Loans Affordability report was released today, showing June's improvement...
Source: New Zealand Herald - Business | 18 Jul 2008 | 1:30 am

Merrill Lynch hit by $9.4bn writedown

The battered investment bank spoiled investors' appetite for financial stocks and dealt a setback for its chief executive after reporting a $4.6bn loss in the second quarter
Source: FT.com - US homepage | 18 Jul 2008 | 1:10 am

Zespri says better returns for kiwifruit growers

Kiwifruit growers can still confidently budget for at least a 10 per cent increase in revenue after the latest selling season of more than 100 million trays. Zespri Group chairman Craig Greenlees reassured growers at the annual...
Source: New Zealand Herald - Business | 18 Jul 2008 | 1:00 am

Gore seeks 100% green energy

The former vice-president urges the presidential candidates to take up the challenge to produce all of the US's electricity from zero-carbon sources within a decade
Source: FT.com - US homepage | 18 Jul 2008 | 12:34 am

Anthony Doesburg: Idle computers unlock secrets of the Kiwi

Every New Zealander with an internet connection is being invited to take part in a unique research project. Using the same software that is harnessing the power of about three million computers worldwide to search for extraterrestrial...
Source: New Zealand Herald - Business | 18 Jul 2008 | 12:30 am

Google and Microsoft feel the economic gloom

Google and Microsoft appear to be feeling the pinch, with both technology behemoths falling short of profit expectations amid the continuing economic gloom.
Source: Telegraph Business | 18 Jul 2008 | 12:21 am

Dow Climbs 207 Points

A sharp drop in oil prices and surprising earnings powered stocks to their second straight big gain.

Source: SmartMoney.com | 18 Jul 2008 | 12:06 am

HBOS shares fail to hit £4bn rights issue price

HBOS shares failed to clamber back above the price of its £4bn rights issue yesterday, potentially leaving its underwriters - Morgan Stanley and Dresdner Kleinwort - with more than £1bn worth of the high street lender's stock
Source: Telegraph Business | 18 Jul 2008 | 12:01 am

Currencies

Currencies
Source: Telegraph Business | 18 Jul 2008 | 12:01 am

Bradford & Bingley gets go-ahead on rights issue

Bradford & Bingley shareholders have approved the bank's £400m rights issue at an extraordinary general meeting in Sheffield.
Source: Telegraph Business | 18 Jul 2008 | 12:01 am

QinetiQ chief need not defend his miserly £95,000 pay rise

Poor old Graham Love. How's a man to cope on a pay rise of just £95,000? The chief executive of QinetiQ now rubs along on £640,000 a year, according to the defence firm's annual report. As for chairman Sir John Chisholm, his pay fell, from £388,653 to £220,765 because he moved to a non-exec role. Are the big guns losing their knack of making money?
Source: Telegraph Business | 18 Jul 2008 | 12:01 am

Ryanair blasts BAA after grounding 20 planes

Ryanair brushed off criticism that it had expanded too fast as it revealed it would ground 20 planes this winter, mostly at Stansted, and temporarily close seven European bases as rocketing oil prices and airport costs made services unprofitable.
Source: Telegraph Business | 18 Jul 2008 | 12:01 am

Stores stop selling Vodafone top-ups in protest

Thousands of independent shopkeepers are to temporarily stop selling Vodafone pre-pay top-ups in protest at the mobile phone company's plan to cut their commission.
Source: Telegraph Business | 18 Jul 2008 | 12:01 am

Thought control: it's the computer world's latest game plan

Click here for a slideshow of the history of computers
Source: Latest Business News from Times Online | 17 Jul 2008 | 11:11 pm

Nintendo is not just toying with thought control

Coming from almost anyone else, it would be a preposterous, almost laughable claim. Even with the breakneck pace of technological advancement, the concept of using thoughts to control games and devices seems more at home in science fiction than in the living room of the near future.
Source: Latest Business News from Times Online | 17 Jul 2008 | 11:01 pm

Google's Q2 Profit Falls Shy Of Views Amid Soft Economy (Investor's Business Daily)

Investor's Business Daily - Google (NasdaqGS:GOOG - News) apparently isn't recession-proof.
Source: Yahoo! News: Business | 17 Jul 2008 | 11:00 pm

Australians putting less on credit cards

SYDNEY - Australian credit card debt levels have posted their slowest annual growth in 14 years as higher interest rates deter consumers from opening their wallets. Meanwhile, bad debt and household interest servicing levels have...
Source: New Zealand Herald - Business | 17 Jul 2008 | 11:00 pm

Tech arch-rivals profits disappoint

Worries that an economic slowdown was starting to eat into profits at both Google and Microsoft hit shares of the tech industry arch-rivals late after each reported quarterly earnings that fell short of most analysts' estimates
Source: FT.com - US homepage | 17 Jul 2008 | 10:49 pm

Economy - Thursday (Investor's Business Daily)

Investor's Business Daily - Home loan rates fell over the last week as Treasury yields fell sharply amid financial woes and views that the Fed won't hike rates this year. The 30-year fixed-rate mortgage fell to 6.26% for the week ended July 17 from 6.37% a week earlier, Freddie Mac said. The 15-year fixed-rate fell 13 basis points to 5.78% this week. The 5-year Treasury-indexed adjustable-rate mortgage edged down to 5.8%, while the 1-year ARM fell 7 ticks to 5.10%. Treasury yields have picked up in the last few days.
Source: Yahoo! News: Business | 17 Jul 2008 | 10:46 pm

Mosaic's Monster Dividend (MOS)

The Mosaic Company (NYSE: MOS) has decided to start paying out a dividend to shareholders. The company's board of directors has declared a quarterly dividend of $0.05 per share on the common stock payable each quarter. This dividend will be paid on August 21, 2008 to stockholders of record as of the close on August 7, 2008. Future dividends declarations are subject to approval by the board.
Source: 24/7 Wall St. | 17 Jul 2008 | 10:39 pm

NZ stocks: Sharemarket gathers momentum

The sharemarket's recovery in the second half of this week gathered momentum in early trading today after another strong performance on Wall Street. US stocks roared higher for a second straight day today as oil prices tumbled...
Source: New Zealand Herald - Business | 17 Jul 2008 | 10:20 pm

VIX Index of U.S. Stock Option Prices Retreats 0.36% to 25.01

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 10:10 pm

HECTOR RUIZ OUT AT AMD AS CEO!!!! (AMD)

AMD (NYSE:AMD) must have read our earnings synopsis and must have finally read enough times over and over about canning Hector Ruiz. He's finally out, albeit not 100% of the way as he should be. The company just announced that the board of directors has FINALLY elected President and COO Dirk Meyer as the company's new chief executive officer.
Source: 24/7 Wall St. | 17 Jul 2008 | 9:28 pm

1st Source Fund Quietly Beats the Competition (Fund Insight)

Ralph Shive's 1st Source fund is quietly beating the pants off the competition.

Source: SmartMoney.com | 17 Jul 2008 | 8:54 pm

Merrill Lynch, Buzzkill

That rally in financial stocks is about to fizzle out, thanks to a painful second-quarter report from Merrill Lynch.

The brokerage lost $4.6 billion, or $4.95 per share. The loss not only disappointed analysts in general, who were expecting a loss of $1.91 per share, it managed to even surpass the low expectations from the biggest Merrill bear on the Street: Oppenheimer's Meredith Whitney, who predicted a loss of $4.21 per share.

The results are likely to weigh on its chief executive John Thain, who inherited a dismal state of affairs when he took over late last year, but who has also suffered from his own missteps since then.

As expected, Merrill announced moves to beef up its capital base to help compensate for its losses. The firm sold its 20 percent stake in Bloomberg for $4.4 billion and it said it has a nonbinding letter of intent to sell a controlling interest in its subsidiary Financial Data Services, which it says is worth $3.5 billion.

In total, Merrill expects to raise $8 billion from the sales. In a twist only an investment banker can truly appreciate, Merrill is also providing the debt financing for both deals.  

While the capital will certainly be welcomed, it's not clear that it will do much for Merrill's business except offset the losses it continues to post. Chief executive John Thain tried to downplay these concerns on a conference call with analysts, however. "We've more than replaced the capital lost," he said.

He also reiterated that the bank's liquidity has improved, and now stands at about $92 billion, up from $79 billion at the end of last year. He added that the bank is in a "comfortable spot" in terms of its capital.

The Bloomberg sale in particular is a bit of a letdown. Just last month, Thain said the stake was valued at as much as $6 billion. But with Bloomberg being the only bidder and Merrill desperate for cash, the firm may even be fortunate to have raised that much.

Merrill also posted negative revenue for the period due to write-downs from mortgages, C.D.O.'s, exposure to monolines, and other credit holdings totaling more than $9 billion on a gross basis. Once again, this figure surpassed the low expectations on the Street, as most analysts had been expecting to see $5 billion to $6 billion in write-downs.

On the conference call, Thain tried to paint a better picture than the numbers showed by citing improvements in the company's core operations and its progress in reducing its exposure to many of the riskiest assets on its balance sheet.

After rallying more than 9 percent today, shares of Merrill erased all their gains in after-hours trading.

Source: Portfolio.com: Top 5 | 17 Jul 2008 | 8:30 pm

Bank ETFs Rally for Second Straight Day (Daily ETF Wrap-Up)

Financial ETFs climb for the second straight day on J.P. Morgan results.

Source: SmartMoney.com | 17 Jul 2008 | 8:27 pm

8 Stocks for Finicky Value Investors (Stock Screen)

Our strictest search for value stocks yielded eight including a cheap power provider.

Source: SmartMoney.com | 17 Jul 2008 | 8:15 pm

Street Hits eBay Hard Over Soft Guidance (One-Day Wonder)

Investors bid eBay shares lower after the auction company offered soft guidance.

Source: SmartMoney.com | 17 Jul 2008 | 8:09 pm

8 Stocks With Fast Earnings, Sales Growth (Stock Screen)

Rapidly rising profits and sales favor the stocks of these eight companies.

Source: SmartMoney.com | 17 Jul 2008 | 8:03 pm

Wells Fargo Downgraded to `Neutral' at UBS on Outperformance

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 7:38 pm

Buying Load Funds Without Paying the Loads (The Irritable Investor)

Why pay expensive loads when the same great funds can be had at no extra charge.

Source: SmartMoney.com | 17 Jul 2008 | 7:35 pm

8 Stocks With Red-Hot Price Momentum (Stock Screen)

Stocks hitting 52-week highs are likely to keep going up. Honest.

Source: SmartMoney.com | 17 Jul 2008 | 7:22 pm

Great Googley Moogely

Google "recession."

No one—except maybe I.B.M.—is immune to the economic slump gripping the nation. Now even Google, whose growth has seemed unstoppable, may be facing some significant headwinds if the reaction of investors is any indication.

Google reported strong second-quarter results, but its earnings fell short of forecasts while its revenue number only slightly topped the consensus estimate. Shares of Google tumbled 10 percent in after-hours trading.

The disappointment over Google may heighten fears that the economic downturn is deepening and causing advertisers to cut back on internet spending, as well as on print and television.

Such fears were fanned earlier today when ValueClick, an online advertising services agency and competitor to Google's DoubleClick, blamed the economic downturn for weak advertising spending.

Google said paid clicks grew 19 percent in the quarter from a year ago and fell 1 percent from the first of the year.  Google has 62 percent of the search market, according to ComScore, nearly double the share of Yahoo.

For the quarter, Google earned $1.25 billion, or $3.92 per share, up 35 percent from $925 million, or $2.93 per share in the quarter a year earlier. Excluding stock-based compensation costs, Google earned $4.63 per share, short of Wall Street estimates.

Sales, when the revenue that is passed on to partner sites is excluded, rose 43 percent to $3.9 billion, in line with forecasts.

"Strong international growth as well as sustained traffic increases on Google's Web properties propelled us to another strong quarter, despite a more challenging economic environment," said Eric Schmidt, chief executive of Google. "As we continue to focus on innovating in our core business of search, ads and apps, we also look forward to enhancing the experience of our users and expanding the reach of our advertisers and partners with new technologies and formats, particularly as our integration of DoubleClick gains momentum and creates new opportunities in display advertising and elsewhere."


Related Links
Google Wins One
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Google Gets Its Ad Deal.


Source: Portfolio.com: Top 5 | 17 Jul 2008 | 7:00 pm

IMF warns emerging markets on inflation

Emerging economies must make the fight against inflation their 'top priority', the fund said, as it sharply raised its forecast for price increases in the developing world
Source: FT.com - US homepage | 17 Jul 2008 | 6:25 pm

Financials boost mood on Wall Street

Oil prices went down, financial reports weren't as grim as expected, even the bank sector looked a bit better today. Amy Scott asks what's up with the predictions of gloom.
Source: Marketplace | 17 Jul 2008 | 5:57 pm

Hollywood Streaming

Amazon.com is launching a streaming video service called Amazon Video On Demand to replace its current video download service, Unbox. It's available to select customers today, and will open up more broadly to the public later in the summer.

Here are the main features:   

•While Unbox requires installing proprietary software and waiting for video to download before viewing, the new service will work through the browser and stream content instantly.

•40,000 movies and television programs will be available to rent or buy from most every distributor and studio except ABC/Disney.

•An online storage "vault" will allow you to access and stream your purchases from multiple devices just by logging in.

•Amazon's video store will be accessible on Sony Bravia televisions with the purchase of a $300 internet video link (future Bravias are expected to have this capability embedded).

What do we like?

Purchases being stored remotely will be a unique feature, and very handy given our frequent desire to access content across multiple devices. That iTunes still doesn't have that feature is one of its major drawbacks.

Also, Amazon's library of 40,000 titles is impressively large compared with rivals like Netflix and iTunes.  

But without a doubt the next frontier in video distribution is getting it on your television. On that front, Amazon's new video service is still weak.  

The fact that Amazon's video on demand offerings can be viewed only on a television by owners of Sony Bravia TV sets—and currently, only to those willing to pony up $300 for a special piece of hardware—limits television viewing to a laughably small segment of the market.

Unbox purchases can be viewed on TVs using TiVo hardware, so if that relationship extends to steaming video, Amazon would be able to pick up extra users that way. Amazon says it's planning on pursuing further content delivery deals with other device makers, but still, for the time being we're looking at very limited television viewing capabilities.  

Netflix, meanwhile, offers around 10,000 rental movies for members to stream instantly to their televisions through its $99 Roku box, and soon through Xbox 360 as well.

Apple's iTunes also has a large selection of videos for purchase or rental that can be viewed on a television using Apple's $229 Apple TV device (they are downloaded, not streamed).

For all the content providers scrambling to put together a compelling internet-to-TV offering, time is of the essence. Once a consumer invests in hardware—whether it is the Roku, Apple TV, Bravia internet video link, or some other new gadget—he or she is more or less locked into that one provider because of the high switching costs.

But Jeff Bezos, the chief executive of Amazon, may have an ulterior motive in pushing ahead on a new video service. Brad Stone of the New York Times says, "Establishing a foothold on televisions could be a way to let couch potatoes and television advertisers link up to the rest of Amazon's online store with a click of the remote control."



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Source: Portfolio.com: Top 5 | 17 Jul 2008 | 5:30 pm

EA's Spore makes gamers the creators

Electronic Arts is about to release a new life-simulation game called Spore that takes players from a single-cell organism to interplanetary societies. GamePro Media's George Jones explains to Kai Ryssdal.
Source: Marketplace | 17 Jul 2008 | 5:23 pm

Here's how to predict future oil prices

Experts use complicated formulas to predict the future price of oil. But commentator Justin Wolfers says he's got a simple do-it-yourself method that works even better.
Source: Marketplace | 17 Jul 2008 | 5:22 pm

Obesity Is Risk for U.S. Economy, Philipson Says

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 5:21 pm

Anything in the pipeline for Russian oil?

You may not hear a lot about it, but Russia is second only to Saudi Arabia in oil production. And, as Russia analyst Nicholas Redman tells Kai Ryssdal, it may have a greater potential for growth.
Source: Marketplace | 17 Jul 2008 | 5:19 pm

Wanna buy an NFL team?

Owners of three National Football League teams are looking to make deals that will get them out of complicated financial situations. Host Kai Ryssdal talks with Sports Business Journal's Daniel Kaplan about whether the owners will get thrown for a loss.
Source: Marketplace | 17 Jul 2008 | 5:17 pm

Making political points, not profits

With 2,000 left-of-center bloggers descending on Austin, Texas, this week for a gathering called Netroots Nation, we asked Marketplace's John Dimsdale to look into whether political blogging has profit-making potential.
Source: Marketplace | 17 Jul 2008 | 5:16 pm

EBay Wins Trial in Tiffany Lawsuit Over Jewelry Fakes

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 5:16 pm

Obama, McCain Would Look to Women, Hispanics for Supreme Court

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 5:11 pm

Ramey Says Meat Producers Cut Production as Feed Prices Rise

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 5:08 pm

SEC Subpoenas Wall Street in Hunt for `Manipulators'

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 5:04 pm

Clinton targets cost of malaria meds

Anti-malarial drugs can be so expensive that people with the disease go untreated. Former President Bill Clinton's foundation has struck a deal that would limit the cost of the drugs. Janet Babin reports.
Source: Marketplace | 17 Jul 2008 | 5:01 pm

Worst of Housing Crisis Is Behind Us: Commentary

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 4:56 pm

Can IndyMac customers get a break?

Many depositors with the troubled IndyMac bank had to wait in line for hours this week to get their money out. They finally got cashiers checks, but it turns out other banks aren't in a hurry to cash them. Jeff Tyler reports.
Source: Marketplace | 17 Jul 2008 | 4:48 pm

Patton's Grandson Says Privateering Changed Business Practices

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 4:48 pm

Agatston Says Losing Stomach Fat Is Vital for Heart Health

Source: Bloomberg - All Podcasts | 17 Jul 2008 | 4:07 pm

Angelo's Fannie Pack

At least five current or former executives at beleaguered Fannie Mae and Freddie Mac are linked to a controversial Countrywide Financial "V.I.P." program that provided mortgages on favorable terms to policymakers and business partners.
 
The executives include Countrywide's former Washington lobbyist, who recommended key officials for V.I.P. treatment, as well as four beneficiaries of preferential loans, among them a former Congressional staffer specializing in housing issues.
 
An article in this month's Condé Nast Portfolio discloses how Countrywide gave cut-rate mortgages to congressmen, journalists and other V.I.P.'s in an effort to curry favor.

Countrywide's former Washington lobbyist, Jimmie Williams, who often referred high-profile prospects for special treatment to the lender, currently works as state director for Freddie Mac.
 

Countrywide's V.I.P. Club An exclusive look at the Countrywide Financial loan scandal.

Clinton C. Jones III, who as a senior counsel of the House Financial Services Housing and Community Opportunity Subcommittee in 2002 was referred for V.I.P. treatment to Countrywide by Williams, is now a vice president at Fannie Mae.

They exemplify the close ties between Countrywide and government-sponsored mortgage buyers Fannie Mae and Freddie Mac. That relationship, which worked to the firms' mutual benefit during the real estate boom, has drawn increasing criticism recently as all three narrowly staved off collapse. Bank of America bought Countrywide at a bargain price, while the federal government has pledged to extend credit to or buy stock in Fannie Mae and Freddie Mac if needed. Fannie Mae and Freddie Mac buy mortgages from Countrywide and other lenders and resell them to investors in the secondary market. Depending on the year, Fannie Mae purchased 10 percent to 30 percent of its loans from Countrywide, which became the nation's biggest mortgage lender.
 
"If Fannie and Freddie catch a cold, I catch the fucking flu," Countrywide co-founder Angelo Mozilo is quoted as saying in Chain of Blame, a new book by Paul Muolo. Now the risky loans that sent Countrywide's share price plummeting and prompted its sale have infected Fannie Mae and Freddie Mac.
 
Home buyers pay discount points to reduce their interest rates; one point equals 1 percent of the loan. Through V.I.P. mortgages, Countrywide cultivated executives at Fannie and Freddie, members of Congress and their staffs, and government officials.   
 
Countrywide's former Washington lobbyist, Williams, acting as an intermediary, would send emails flagging the importance of potential V.I.P. clients to Countrywide. A person familiar with Williams' thinking said that he recommended a hodgepodge of prospective customers for loans, from a security guard to elected officials and Congressional staff. He initially directed them to local Countrywide branches, but began hearing complaints that some branches were slow or overwhelmed. To ensure quality service, he referred more of them to the V.I.P. program, based in Countrywide’s Rosemead, California, call center.
 
In November 2002, Williams urged Doug Perry, a call-center manager, to give "specialized handling" to a loan application from Jones, then senior counsel of the House Financial Services Housing and Community Opportunity Subcommittee. "Jones is also an adviser to ranking Republican members of Congress responsible for legislation of interest to the financial-services industry and of importance to Countrywide," Williams added.
 
 Perry then emailed Robert Feinberg, a Countrywide loan officer who dealt with V.I.P. borrowers: "Can you please handle this? 0.5 off. No garbage fees."
 
Once Feinberg completed the paperwork on Jones, the lawyer borrowed $101,800 in February 2003. Countrywide waived five-eighths of a point, or about $625. Senate rules bar members and staff from knowingly accepting gifts of more than $100; gifts include loans on terms not available to the general public.
 
Jones acknowledges being told that he was in the V.I.P. program. But he says his interest rate was average or slightly higher and that he's shocked to learn of his discount. "I thought I was just getting great service," he says. "I didn't know there was a shaving of points."
 
Former Fannie Mae vice president Robert Sanborn refinanced several times through the V.I.P. program. In 2004, for instance, Countrywide waived three-quarters of a point, or about $2,600, on Sanborn's $345,000 refinance of his Provincetown, Massachusetts, vacation home, according to a company document.
 
Sanborn, who worked on risk management and loan servicing in the Dallas office, left Fannie Mae in 2007 and is now a real estate broker. He said he learned about the V.I.P. program through Countrywide contacts, and saw nothing wrong with using it.
 
"My understanding is that it was simply a centralized service for people in the mortgage industry to accelerate the process," he says. He said that Countrywide gave him "the best competitive rates" and "maybe they waived a fee here or there." But, he said, he did not receive any "deep discounts."
 
"I would not call three-quarters of a point a deep discount," Sanborn added. "Loan brokers all over the place have the authority to waive discount points. It's not unusual."
 
Sanborn said he knows Mozilo, but that Countrywide's co-founder didn't refer him to the V.I.P. program. Mozilo did personally arrange a refinancing for another former Fannie Mae executive: Franklin Raines, its chief executive from 1999 to 2004.
 
On June 9, 2003, the same day Raines applied for a nearly $1 million loan, a Countrywide receptionist took a message from Raines' assistant: "Per Angelo, Frank needs to refi." A Countrywide manager then instructed Feinberg by email to take one discount point, or nearly $10,000, off the loan and not to charge "junk" fees.
 
Former Fannie Mae chief executive James Johnson, a close friend of Mozilo, also was given special treatment. As has been previously reported, Johnson received more than $7 million in V.I.P. loans.
Related Links
Angelo's Many 'Friends'
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Source: Portfolio.com: Top 5 | 17 Jul 2008 | 3:00 pm

The Fortress Holds Secure

Score another one for the fortress balance sheet.

J.P. Morgan Chase, the largest U.S. financial institution to have largely weathered the credit storm, said today that second-quarter earnings fell 53 percent, as it took a hit on mortgage-related losses and on the costs of absorbing Bear Stearns.

But the results easily exceeded estimates, giving investors another reason to have faith in financial stocks a day after Wells Fargo's results impressed.

The bank more than doubled its provision for credit losses, raising its reserves by $1.3 billion, and it wrote down the value of mortgage-related positions and leveraged loans by $1.1 billion. The acquisition of Bear Stearns accounted for $540 million in losses.

For the quarter, J.P. Morgan earned $2 billion, or 54 cents per share, compared with $4.2 billion, or $1.20 per share, in the quarter a year ago. Net revenue, or revenue minus interest expenses, fell 3 percent, to $18.4 billion.

J.P. Morgan's results look stellar compared with other banks and Wall Street firms even as it has also been affected by the housing slump and resulting credit crunch. Thanks to what its chief executive, Jamie Dimon, has called its "fortress balance sheet," J.P. Morgan has not taken write-downs on the scale of others, nor has it scrambled desperately to raise new capital. Its chief rival, Citigroup, has taken more than $40 billion in write-downs.

Still, Dimon struck a strong note of caution today.

"Our expectation is for the economic environment to continue to be weak—and to likely get weaker—and for the capital markets to remain under stress," he said. "We remain conscious that since substantial risks still remain on our balance sheet, these factors will likely affect our business for the remainder of the year or longer."

One area of concern is the bank's credit-card business. Analysts have warned that card issuers face growing losses this year and next as more cash-strapped consumers are late or default on their payments. J.P. Morgan, along with Citi and Bank of America, have the greatest exposure to credit-card debt.

Earnings at J.P. Morgan's card business fell 67 percent in the quarter from a year ago because of a higher provision for credit losses.


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Source: Portfolio.com: Top 5 | 17 Jul 2008 | 12:00 pm