|
|
|
|
Market Snapshot: U.S. stocks fall after jobs report, GM lossU.S. stocks fall as crude oil prices rally past $127 a barrel, fueling economic worries just after a report showed the unemployment rate ticked higher in July and General Motors Corp. posted a huge quarterly loss.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 3:04 pm US stocks fall as investors digest jobs dataWall Street stocks fell back and trimmed modest weekly gains, as investors digested some weak data, poor results from General Motors and a bump in the price of oilSource: FT.com - US homepage | 1 Aug 2008 | 3:04 pm Stocks pull back on jobs, manufacturing dataNEW YORK -- Wall Street extended its decline Friday after readings on jobs, manufacturing and construction indicated that businesses and workers still face a tough U.S. economy.Source: L.A. Times - Business | 1 Aug 2008 | 3:03 pm Boosting wages: McCain vs. ObamaWhen it comes to stagnating wages, Barack Obama and John McCain agree on one thing: Americans are suffering. And that's about all they agree on.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 3:02 pm US jobless rate hits four-year highThe US unemployment rate moved up in July to 5.7% as the economy shed jobs for the seventh consecutive month, but the pace of job losses was not as fast as economists had predictedSource: FT.com - US homepage | 1 Aug 2008 | 3:02 pm Sun Micro shares take hit on weak forecastShares of Sun Microsystems Inc. slid Friday morning after the company reported a sharp drop in earnings for the fourth fiscal quarter and warned of a loss for the current period due to the slowing economy.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 3:01 pm JPMorgan Earnings Estimates Lowered at Merrill LynchSource: Bloomberg - All Podcasts | 1 Aug 2008 | 2:58 pm Manufacturing flat in July as exports keep growing (AP)AP - U.S. manufacturers' business was flat in July, as higher prices and tight credit kept them from expanding, but exports propped them up.Source: Yahoo! News: Business | 1 Aug 2008 | 2:57 pm Economic Report: U.S. jobless rate jumps to four-year-high of 5.7%Nonfarm payrolls drop for a seventh straight month in July while the unemployment rate jumps to 5.7%, a four-year high, according to Labor Department data.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:57 pm Chevron earnings hit by losses at refineriesRising oil and natural gas prices in the second quarter led Chevron, the second biggest oil company in the US, to report net profits of $6bn, up from $5.4bn a year ago, in spite of falling production and a loss in its refining and marketing segmentSource: FT.com - US homepage | 1 Aug 2008 | 2:56 pm Bond insurer Ambac catches a $150M breakSource: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:55 pm Gas bill spurs family to tackle debtThe high cost of gas motivated the Flowers to take control of their debt.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:53 pm General Motors swings to a massive second-quarter lossGeneral Motors reports another massive loss as customers’ shift away from its profitable truck and SUV lines gathered momentum during the second quarter. Shares of the Dow Jones Industrial Average component sell off initially, then stage a partial recovery.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:52 pm ComScore shares rise after company beats estimatesSAN FRANCISCO (MarketWatch) - Shares of research firm comScore Inc. jumped Friday morning after the company reported second-quarter results that generally beat Wall Street analysts' estimates.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:49 pm Utilities post mixed quarterly resultsSAN FRANCISCO (MarketWatch) -- Four of the biggest U.S. power companies reported quarterly earnings Friday. All of them said their results were pinched by the rising cost of fuel, which is driving up the cost of power generation.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:48 pm Chevron posts record earningsNEW YORK (Reuters) - Chevron Corp said on Friday record oil prices drove second-quarter earnings up 11 percent to its highest-ever profit, but weak margins from gasoline production led to a big loss at its refining operations.Source: Reuters: Business News | 1 Aug 2008 | 2:46 pm Clorox net dips, but shares up on profit surprise and forecastsClorox Corp. on Friday reported 3.7% lower fourth-quarter net income, but the shares climbed in early trading as it beat forecasts for the quarter and offered a 2009 forecast in line with estimates despite expected cost increases.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:46 pm Metals Stocks: Gold futures pare most losses as oil ralliesGold futures fell early Friday, as the U.S. dollar rose against rivals after a report showed that nonfarm payrolls fell less than expected in July.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:45 pm Markets slide in early goingStocks fell Friday morning as investors considered a seventh straight month of job losses, a dismal second-quarter report from General Motors and oil prices that jumped more than $4 in morning trading.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:44 pm How bad is the economy? You weigh inMore bad news on the economic front today. GM reported a whopping $15.5 billion loss. And the economy lost 51,000 jobs in July.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:43 pm NYSE Euronext shares dive after company misses analyst forecastsOperator of the New York Stock Exchange and Euronext stock markets sees shares tumble after lower-than-expected profit report.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:42 pm Manufacturing activity flat in July: ISM (Reuters)Reuters - Factory activity was unchanged in July from June, but better than expectations for a contraction in the sector, while inflation pressures moderated, according to a report released on Friday.Source: Yahoo! News: Business | 1 Aug 2008 | 2:38 pm Manufacturing activity flat in July: ISMNEW YORK (Reuters) - Factory activity was unchanged in July from June, but better than expectations for a contraction in the sector, while inflation pressures moderated, according to a report released on Friday.Source: Reuters: Business News | 1 Aug 2008 | 2:38 pm Currencies: Dollar lifted after better-than-expected U.S. jobs dataThe dollar gains on the euro amid weak data reported on German retail sales and the euro-zone manufacturing sector.Source: MarketWatch.com - Top Stories | 1 Aug 2008 | 2:34 pm Carlyle forced to liquidate only hedge fundCarlyle, the US private equity giant, has suffered a setback after it was forced to liquidate its $600 million first and only hedge fund because it had failed to achieve $"critical mass".Source: Latest Business News from Times Online | 1 Aug 2008 | 2:33 pm Tax rebates to pay debt or into savings: surveyNEW YORK (Reuters) - Among U.S. households receiving a federal tax rebate, about one-in-four planned to spend the money sometime in the next year or so, with most planning to pay debts or add to their savings and reserves, according to a Reuters/University of Michigan poll released on Friday.Source: Reuters: Business News | 1 Aug 2008 | 2:30 pm GM posts $15.5 billion lossGeneral Motors reported a huge second-quarter net loss Friday of $15.5 billion, after restructuring and other charges, as the automaker's run of troubles continued.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:29 pm Oil surges on jobs reportRead full story for latest details.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:26 pm Why Biogen & Elan TYSABRI News Should Have Been Expected (BIIB, ELN)This morning's share price reaction seen in Biogen-Idec Inc. (NASDAQ: BIIB) and Elan Corp. plc (NYSE: ELN) is severe. We do not want to try to sound as though this TYSABRI news is something that isn't of consequence and don't want to make it sound like it is a non-event. Last night after the close the companies released the bad news that two more PML cases had been discovered in TYSABRI patients using the drug for the treatment of Multiple Sclerosis.Source: 24/7 Wall St. | 1 Aug 2008 | 2:24 pm Wal-Mart warning managers of labor billNEW YORK (Reuters) - Wal-Mart Stores Inc said on Friday it has held meetings with U.S. store managers warning them of issues that could arise if Democrats win power and pass a law that would make it easier for workers to unionize, but stressed it was not telling workers how to vote.Source: Reuters: Business News | 1 Aug 2008 | 2:24 pm Virgin America's bid to stay aloftSo here we were at 6:20 Monday morning at Los Angeles International Airport. Despite the hour, a disc jockey played pulsing club music, a soundtrack that soon continued onboard a Virgin America Airbus with "My Other Ride is a Spaceship" emblazoned behind its nose. A 20-minute flight later, the jet landed in Mojave, Calif., where tycoon Richard Branson awaited.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:20 pm Carmaker GM loses another $15.5bnGeneral Motors reports a three month loss of $15.5bn (£7.8bn) as sales plunge in its home market.Source: BBC News | Business | World Edition | 1 Aug 2008 | 2:17 pm Wall St drops on GM fallout (Reuters)
Source: Yahoo! News: Business | 1 Aug 2008 | 2:14 pm Wall St drops on GM falloutNEW YORK (Reuters) - Stocks fell on Friday as a sell-off in shares of biotechnology companies drove the Nasdaq down more than 1 percent, while General Motors' hefty loss added to concerns about the impact of the credit crisis on the economy and the outlook for corporate profits.Source: Reuters: Business News | 1 Aug 2008 | 2:14 pm Citigroup faces formal SEC probe, state subpoenasNEW YORK (Reuters) - Citigroup Inc on Friday said the U.S. Securities and Exchange Commission has opened a formal probe into possible violations of federal securities laws in connection with the sale of auction-rate securities.Source: Reuters: Business News | 1 Aug 2008 | 2:07 pm Juice economy again? A tough callIn February, lawmakers passed a $168 billion program to juice the economy. And some say it's time to do it again.Source: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:04 pm IndyMac Bancorp files for Chapter 7 bankruptcyNEW YORK (Reuters) - IndyMac Bancorp Inc , once one of the largest U.S. mortgage lenders, has filed for bankruptcy protection, less than three weeks after being seized by federal regulators following a bank run by depositors.Source: Reuters: Business News | 1 Aug 2008 | 2:02 pm Career slump? How to find the right coachDear Annie: I've had a 14-year career in financial services, but I just got laid off and I don't think it makes sense to look for another job like my old one. (They're disappearing rapidly.) I'd like to get some solid advice and coaching as I think about my next move -- including which other industry I might be able to transfer my skills to -- so I've been thinking about hiring a coach. But an Internet search turns up a bewildering variety of choices. How do I pick the right one? -Goodbye to BankingSource: Business and financial news - CNNMoney.com | 1 Aug 2008 | 2:01 pm Citigroup faces formal SEC probe, state subpoenas (Reuters)Reuters - Citigroup Inc on Friday said the U.S. Securities and Exchange Commission has opened a formal probe into possible violations of federal securities laws in connection with the sale of auction-rate securities.Source: Yahoo! News: Business | 1 Aug 2008 | 1:57 pm MG Rover speeds back into action at LongbridgeFull-scale car manufacturing resumed today at the historic Longbridge factory, with the production of the two-seater MG TF LE500 sports car.Source: Telegraph Business | 1 Aug 2008 | 1:56 pm MG Rover speeds back into action at LongbridgeFull-scale car manufacturing resumed today at the historic Longbridge factory, with the production of the two-seater MG TF LE500 sports car.Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 1:56 pm Stocks Flat on Job LossThe major indexes were barely changed after the government said the economy lost 51k jobs in July.Source: SmartMoney.com | 1 Aug 2008 | 1:52 pm GM nears centenary with $15.5bn quarterly loss$General Motors, the world's largest car maker, today blamed declining demand for large, fuel-thirsty vehicles in the US for a $15.5 billion ($£7.8 billion) loss in the second quarter.Source: Latest Business News from Times Online | 1 Aug 2008 | 1:51 pm FDA unexpectedly rejects Schering anesthesia drugNEW YORK (Reuters) - Schering-Plough Corp said on Friday U.S. regulators had rejected Bridion, its drug to reverse the effects of anesthesia that had been heralded as a breakthrough product by analysts and was unanimously recommended by a federal advisory panel.Source: Reuters: Business News | 1 Aug 2008 | 1:47 pm John Hancock Tax-Advantaged Dividend Income Fund Announces Increased Monthly DistributionsBOSTON, Aug. 1 /PRNewswire-FirstCall/ -- John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) announced today that the Fund will increase its monthly distributionSource: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:47 pm Wall Street fluctuates after employment dataStocks fluctuated in early trading Friday after news that jobs fell for the seventh straight month and that General Motors Corp. had its third-worst quarterly loss ever. The July jobs...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:46 pm 6 Globe-Trotting Funds (Fund Screen)Global funds give investors instant access to hundreds of stocks around the world.Source: SmartMoney.com | 1 Aug 2008 | 1:43 pm CME Group Volume Averaged 11.2 Million Contracts per Day in July- Electronic volume increased 7 percent, with a record 85 percent of all contracts traded electronically - CME Group E-mini equity index volume rose 34 percent - NYMEX volume...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:43 pm Merrill Move May Mark Capitulation on Financials (Ahead of the Curve)After a pair of head-fakes, capitulation on financial stocks may finally be at hand.Source: SmartMoney.com | 1 Aug 2008 | 1:41 pm GM posts $15.5 billion loss as sales sputter (Reuters)
Source: Yahoo! News: Business | 1 Aug 2008 | 1:39 pm GM posts $15.5 billion loss as sales sputterDETROIT (Reuters) - General Motors Corp posted a $15.5 billion quarterly loss on Friday, as North American sales dropped by 20 percent and plunging prices for SUVs prompted deep charges for its auto finance business.Source: Reuters: Business News | 1 Aug 2008 | 1:38 pm Middle East war zones boost BAEDemand for armoured vehicles to protect US and UK troops helps to lift profits at defence group BAE Systems.Source: BBC News | Business | World Edition | 1 Aug 2008 | 1:36 pm Chavez plans to nationalise bankVenezuela's President Hugo Chavez announces a plan to nationalise Bank of Venezuela.Source: BBC News | Business | World Edition | 1 Aug 2008 | 1:35 pm Citizens Community Bank Reports Second Quarter and Year-to-Date Results- Earnings decline as the Bank opens its fifth branch facility - SOUTH HILL, Va., Aug. 1 /PRNewswire-FirstCall/ -- Citizens Community Bank (OTC: CZYB) today reported...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:35 pm KONE Acquires an Elevator Company in Northern New JerseyCHICAGO, August 1 /PRNewswire-FirstCall/ -- KONE acquired the International Elevator Company (IEC), a full service elevator company based in New Jersey, USA. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:34 pm Wall Street heads higher after employment dataStocks are advancing in early trading after the government said the economy shed jobs for the seventh straight month in July, but at a slower-than-expected rate. The Labor Department...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:32 pm Seven Summits Research Releases Alerts on RIMM, WFC, CVS, BARE, and KSUCHICAGO, Aug. 1 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:31 pm FDA unexpectedly rejects Schering anesthesia drugNEW YORK (Reuters) - Schering-Plough Corp said on Friday U.S. regulators had rejected Bridion, its drug to reverse the effects of anesthesia that had been heralded as a breakthrough...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:28 pm Elan dives as double whammy rocks Irish drugmakerDUBLIN/LONDON (Reuters) - Shares in Irish drugmaker Elan dived more than 50 percent to their lowest level since 2005 on Friday as a second product setback in a week shattered confidence in...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:27 pm Housing, Job Data Signal Recovery, Not Recession (Ahead of the Curve)The latest housing and jobs data signal an economic recovery, not a recession.Source: SmartMoney.com | 1 Aug 2008 | 1:25 pm Foley Hoag Wins Key Victory for Government of Bolivia in Investor Dispute over Nationalization of Telephone Company EntelNew York federal judge rules that investors opposed to nationalization cannot sidestep arbitral procedures and pressure a sovereign government by attaching company's assets; case has...Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Aug 2008 | 1:25 pm BMW adds to carmakers' gloomThe German luxury carmaker issued a profit warning and reported a sharp drop in second-quarter profit, and said it expected 2009 to be 'another difficult year full of challenges'Source: FT.com - US homepage | 1 Aug 2008 | 1:23 pm BMW adds to carmakers' gloomGerman luxury carmaker BMW added to the rising gloom in the car industry on Friday as it issued a profit warning and reported a sharp drop in second quarter profit. The Munich-based company group forecast...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 1:23 pm Ski in August? Hitting the Lifts of Indoor Slopes (SmartMoney Magazine)From New Jersey to Dubai, massive indoor slopes are becoming hot recreational spots.Source: SmartMoney.com | 1 Aug 2008 | 1:22 pm UK company insolvencies soar 60pcThe number of companies that have been place in administration in the past three month has jumped 60pc compared with last year, official insolvency statistics reveal.Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 1:22 pm UK company administrations soar 60pcThe number of companies that have been place in administration in the past three month has jumped 60pc compared with last year, official insolvency statistics reveal.Source: Telegraph Business | 1 Aug 2008 | 1:22 pm Kingfisher quits Italy with 440m saleKingfisher, owner of the B&Q do-it-yourself chain, on Friday said it had agreed to sell Castorama Italy for 560m (440m) as it moves to reduce its 1.5bn net debt.The unit was sold to privately-owned...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 1:21 pm Jobless rate highest in 4 yearsWASHINGTON (Reuters) - The U.S. unemployment rate hit its highest level in four years during July as employers cut non-farm jobs for a seventh straight month, though less severely than predicted, a Labor Department report on Friday showed.Source: Reuters: Business News | 1 Aug 2008 | 1:20 pm US unemployment rate falls to four-year lowAmerica’s unemployment rate jumped to a four-year high in July, its seventh consecutive monthly increase, providing further evidence that the economy could fall into recession in the second half of this year.Source: Latest Business News from Times Online | 1 Aug 2008 | 1:20 pm US jobless rate at four-year highThe US unemployment rate climbed to 5.7% in July, its highest in more than four years, official data shows.Source: BBC News | Business | World Edition | 1 Aug 2008 | 1:18 pm BA tumbles amid 'worst trading ever'British Airways' first-quarter pre-tax profits fell by 88 per cent, as the UK flag carrier announced plans on Friday to cut flights during the coming winter season and to reduce capital expenditure in...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 1:18 pm Jobs report set to boost Wall StWall Street stocks were set for a higher start on Friday, and poised for some modest weekly gains, as investors digested data showing a rise in the unemployment rate but a smaller-than-expected decline...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 1:17 pm Jobless rate highest in 4 years (Reuters)
Source: Yahoo! News: Business | 1 Aug 2008 | 1:02 pm Jobless rate rises to 4-year high of 5.7 percentThe nation's unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work.Source: L.A. Times - Business | 1 Aug 2008 | 12:58 pm Jobless rate rises to 4-year high of 5.7 percentThe nation's unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work.Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 12:58 pm 25 Funds With Good Returns Since Inception (Fund Screen)These mutual funds have been posting good average returns since Day 1.Source: SmartMoney.com | 1 Aug 2008 | 12:57 pm Celebrating The Jobs Numbers, At The Dollar StoreThe employment data for June was far from good, but also was not as bad as many estimates. You can gleam some good news if you want but the "less bad" stance sure seems more appropriate. The nominal unemployment rate came in at 5.7% versus 5.6% estimates, which is the highest level since early 2004. The report on non-Farm payrolls shrunk by 51,000 jobs, but estimates were for a drop of 75,000 jobs. Average hourly earnings rose 0.3% to $18.06 per hour, which is about as far behind inflation as you could imagine. Another piece of data showed that total...Source: 24/7 Wall St. | 1 Aug 2008 | 12:44 pm FTSE slips as British Energy deal faltersLondon equities were lower on Friday, as deal activity faltered and miners lost ground but closely-watched US economic data was stronger than forecast, boosting hopes the world's biggest economy had turned...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 12:44 pm Yukos figure 'guilty of murders'A former top figure in the Russian oil company Yukos is found guilty by a Russian court of masterminding several murders.Source: BBC News | Business | World Edition | 1 Aug 2008 | 12:40 pm BMWs Profit SlidesFRANKFURT, Germany (AP) -- Automaker BMW AG said Friday that its second-quarter profit slid nearly 33 percent and abandoned its annual profit forecast, blaming a drop in U.S. sales, rising costs for raw...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 12:39 pm Economy Still Hasn't Turned Corner, Experts Say (Pundit Watch)A topsy-turvy July did little to convince our experts a corner is being turned.Source: SmartMoney.com | 1 Aug 2008 | 12:39 pm Total Reports Profit Up 38 PercentPARIS (AP) -- The French energy company Total SA on Friday reported its profit climbed 38.7 percent in the second quarter, joining other oil companies in posting strong results as oil prices surged this...Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Aug 2008 | 12:38 pm Northern Oil: A Question of Value (Today From Barron's)Northern Oil owns land on the biggest deposit in the U.S., but investors should be cautious.Source: SmartMoney.com | 1 Aug 2008 | 12:36 pm Bleak outlook for UK economy as manufacturing shrinks to 10-year lowThe bleak state of the British economy shows no signs of letting up as the latest survey revealed that the manufacturing sector shrank the most in almost a decade last month.Source: Telegraph Business | 1 Aug 2008 | 12:22 pm Families take advantage of leisure industry price warFamilies are taking advantage of a price war in the leisure industry as theme parks, historical sites and other attractions offer substantial discounts.Source: Telegraph Business | 1 Aug 2008 | 12:12 pm Sun Microsystems (JAVA) Continues To Float DownSun Microsystems (JAVA) announced a $1 billion share buy-back. It was not much of a beard to put on its particularly poor earnings.Source: 24/7 Wall St. | 1 Aug 2008 | 12:10 pm GM plunges to $15.5bn lossThe carmaker was hammered by falling sales in its core North American market and a dramatic shift from big pick-up trucks and SUVs to more fuel-efficient but less profitable carsSource: FT.com - US homepage | 1 Aug 2008 | 11:53 am Credit crunch leaves Alliance & Leicester's profits in tattersAlliance & Leicester profits plunge 99pcSource: Telegraph Business | 1 Aug 2008 | 11:45 am Statoil to stop investing in IranThe Norwegian oil and gas group StatoilHydro agrees not to make any new investments in Iran.Source: BBC News | Business | World Edition | 1 Aug 2008 | 11:33 am Top Pre-Market Analyst Downgrades (FMR, GOL, HNSN, IMCL, MNST, OSIR, WYE)These are some of the key downgrades or negative calls we are seeing from analysts this Friday morning with more than two hours to the open: First Mercury (FMR) Cut to Neutral at JPMorgan. GOL Linhas Areas Inteligentes S.A. (GOL) Cut to Underweight at JPMorgan. Hansen Medical (HNSN) Cut to Neutral at Merriman Curhan Ford. ImClone (IMCL) Cut to Hold at Citigroup. Monster Worldwide (MNST) Cut to Neutral at JPMorgan. Osiris Therapeutics (OSIR) Cut to Underperform at Jefferies. Wyeth (WYE) Cut to Neutral at HSBC. Jon C. Ogg August 1, 2008Source: 24/7 Wall St. | 1 Aug 2008 | 11:33 am Top Pre-Market Analyst upgrades (ABX, CVC, EMC, MOT, OCR, PWAV, RHB)These are not all of the analyst calls by far, but these are some of the calls that appear as impact calls this Friday morning witth more than two-hours to the open: Barrick Gold (ABX) Raised to Outperform at Credit Suisse. Cablevision (CVC) Raised to Buy at Citigroup. EMC (EMC) Raised to Outperform at FBR. Motorola (MOT) Raised to Neutral from Sell at Piper Jaffray. Omnicare (OCR) Raised to Buy at Jefferies. Powerwave (PWAV) Raised to Buy at Jefferies. RehabCare (RHB) Raised to Outperform at Morgan Keegan. Jon C. Ogg August 1, 2008Source: 24/7 Wall St. | 1 Aug 2008 | 11:31 am TotaledIs there any hope left for the auto giants? "Challenging market conditions aren't going to go away tomorrow." He'd better hope, for the sake of investors and his own hide, that they do go away the day after. Showing New Colors Dollar Daze Who Will Survive? Source: Portfolio.com: Top 5 | 1 Aug 2008 | 11:30 am GM (GM): The Death Of Hope As Market Share And Asia SlideGM posted a massive net loss was $15.5 billion or $27.33 per share for the second quarter, including these charges and special items, compared with net income from continuing operations of $784 million or $1.37 per share in the second quarter of 2007. With the one-time items taken out, the loss was $6.3 billion or $11.21 per share Revenue from continuing operations fell to $38.2 billion from $46.7 billion.Source: 24/7 Wall St. | 1 Aug 2008 | 11:18 am FSA abandons probe into HBOS share rumoursThe Financial Services Authority (FSA) has failed to uncover evidence that HBOS was the victim of deliberate rumours spread by short-sellers to drive down the bank's share price.Source: Latest Business News from Times Online | 1 Aug 2008 | 11:16 am Nissan profits drop 43% as scooters gain favourA slumping American car market, a new appetite for scooters and rapidly swelling manufacturing costs have hammered profits at Nissan, the Japanese automotive giant run by Carlos Ghosn.Source: Latest Business News from Times Online | 1 Aug 2008 | 11:13 am General Motors posts $15.5-billion quarterly lossGeneral Motors Corp. said Friday its losses widened to $15.5 billion in the second quarter as North American sales plummeted and the company faced expenses due to labor unrest and its massive restructuring plan.Source: L.A. Times - Business | 1 Aug 2008 | 11:10 am Production resumes at LongbridgeFull-scale car production restarts at the famous Longbridge plant in Birmingham.Source: BBC News | Business | World Edition | 1 Aug 2008 | 10:57 am BMW to raise car prices after profit warningBMW, the premium carmaker, today issued a profits warning due to a sharp slowdown in US sales during the second quarter, adding to the mounting gloom in the automotive industry.Source: Latest Business News from Times Online | 1 Aug 2008 | 10:44 am German retail sales fall in JuneGermany's unemployment rate falls in March, but retail sales are down, official data shows.Source: BBC News | Business | World Edition | 1 Aug 2008 | 10:39 am Crude Oil Price Drop: Lying With NumbersMathematics and statistics were almost certainly created to support spurious thinking, although the school systems later developed other uses for them. The headlines across the business media belted out in town crier fashion that oil had dropped a record $20 in July to sit at about $125 a barrel. The prices of corns and wheat also fell at paces not seen in over two decades. All of this was presented as almost unprecedented good news.Source: 24/7 Wall St. | 1 Aug 2008 | 10:26 am UK nuclear energy deal collapsesA deal that would involve the sale of most UK nuclear power stations to a French energy firm now appears uncertain.Source: BBC News | Business | World Edition | 1 Aug 2008 | 10:24 am Rising costs hit UK manufacturersManufacturing activity contracts in July by the sharpest rate in almost a decade as firms face higher costs and slowing demandSource: BBC News | Business | World Edition | 1 Aug 2008 | 10:15 am Third Quarter Bank Earnings Warning: Fed Being Hit For Record SumsThere has been plenty of forecasting and anecdotal evidence that US money center banks will have more write-downs in coming quarters. Most of this data is deductive. The IMF has said the mortgage write-downs will top out at $1 trillion. Experts believe that credit card and auto loan defaults will spread to bank earnings. A more solid indication of bank trouble is the rate at which they are borrowing money from the Fed.Source: 24/7 Wall St. | 1 Aug 2008 | 10:09 am BA's woes would ease if the US behaved like the land of the freeAnyone still wondering why British Airways is pursuing an all-share merger with Spain's Iberia should take a look at today's first-quarter results.Source: Telegraph Business | 1 Aug 2008 | 10:00 am Kingfisher off-loads Italian arm for €560mShares in Kingfisher, owner of the B&Q DIY chain, today rose 3.8 per cent after it announced it had secured a €560 million (£440.7 million) deal to off-load its underperforming Italian business.Source: Latest Business News from Times Online | 1 Aug 2008 | 9:55 am US Auto Troubles Eviscerate Foreign Car Company EarningsThe plague of falling US vehicle sales is reaching the earnings of big car companies abroad. BMW "reported second-quarter earnings that trailed analysts' estimates and abandoned its profit forecast on falling U.S. sales, the dollar's decline and rising costs for plastics, steel and oil", according to Bloomberg The strength of BMW's balance sheet means that the downturn is not a long-term threat to the company, but it could do harm to earnings for a number of quarters to come.Source: 24/7 Wall St. | 1 Aug 2008 | 9:53 am Manufacturing sinks for third month in a rowBritish manufacturing activity fell at its fastest rate in a decade during July as companies struggled with the soaring cost of raw materials and a drop in orders, raising fears a recession is inevitable.Source: Latest Business News from Times Online | 1 Aug 2008 | 9:47 am BAE expects defence spending to jump as its profits riseArms manufacturer BAE Systems signalled that world defence spending will only increase, as it posted a 20pc increase in first-half profits on the back of the wars in Iraq and Afghanistan.Source: Telegraph Business | 1 Aug 2008 | 9:47 am Wal-Mart (WMT) Defends Against The SocialistsWal-Mart (WMT) defenders of the faith of "every day low pricing" is warning its management and supervisors that if Democrats win the election in the Fall, it will be easier for workers at the world's largest retailer to create unions. Most Wal-Mart shareholders believe that keeping organized labor out improves margins.Source: 24/7 Wall St. | 1 Aug 2008 | 9:32 am Alliance & Leicester profits plunge 99pcAlliance & Leicester profits plunge 99pcSource: Telegraph Business | 1 Aug 2008 | 9:22 am Nuclear fallout as EDF pulls £12bn British Energy dealTwo major shareholders in British Energy are understood to have vetoed the £12 billion bid by French energy giant EDF which threw the Government's nuclear programme into chaos last night.Source: Latest Business News from Times Online | 1 Aug 2008 | 9:00 am Alliance & Leicester profits plunge by 99%Alliance & Leicester (A&L), the UK mortgage lender that is being bought by Spain's Santander, today revealed its interim profits have been virtually wiped out after taking a £209 million hit on risky assets and higher funding costs.Source: Latest Business News from Times Online | 1 Aug 2008 | 8:41 am British Energy shares fall as EDF pulls out of £12bn dealFrench utility giant EDF is today expected to unveil a recommended £12bn, 760p to 770p-a-share offer for British Energy, the UK's nuclear power company.Source: Telegraph Business | 1 Aug 2008 | 8:30 am China's Hu pledges post-Olympic reformsPresident Hu Jintao says China will pursue robust growth and policy reforms following the Beijing OlympicsSource: FT.com - US homepage | 1 Aug 2008 | 8:16 am Armoured vehicles boost BAEBritain's biggest defence contractor reported a 26% rise in first-half profits and offered a confident outlook for the year, saying it would continue to benefit from strong demand for armoured vehiclesSource: FT.com - US homepage | 1 Aug 2008 | 7:40 am German retail sales fall by 1.4 percent in June: Destatis (AFP)
Source: Yahoo! News: Business | 1 Aug 2008 | 7:18 am British Airways, BAE Systems, BMW: Roundup for August 1Shell, Anglo American and Mitchells & Butlers: Roundup for July 31Source: Telegraph Business | 1 Aug 2008 | 7:10 am CBS to sell 50 mid-size radio stationsA downturn in local advertising hurts the media company. More than 70% of its revenue comes from ad sales.For CBS Corp., it wasn't video that killed the radio star -- but a severe downturn in local advertising. Source: L.A. Times - Business | 1 Aug 2008 | 7:00 am Major automakers' retreat from car leasing opens doors for the little guysGeneral Motors joins Ford and Chrysler in scaling back its leasing business, which has been losing money as prices for trucks and SUVs decline.The auto leasing business is crashing, with major carmakers and leading banks bailing out of what was once a lucrative line. But that could be a good thing for small leasing companies, experts say. Source: L.A. Times - Business | 1 Aug 2008 | 7:00 am A cute-ute drives off Dr. Moreau's islandVolkswagen often invokes the climes and cultures of North Africa for its products' names: Toureg -- the name of VW's goodly sized off-roader -- is borrowed from the aboriginal people of the Sahel. Scirocco is a withering desert wind. This is a curious practice since the Germans had a decidedly mixed record in North Africa.Source: L.A. Times - Business | 1 Aug 2008 | 7:00 am Exxon's second-quarter profit breaks its own recordThe oil giant brings in $11.68 billion, the largest profit for a U.S. company, and still fails to meet analysts' expectations. Critics say Exxon and others aren't doing enough to reduce gas prices.Exxon Mobil Corp. posted second-quarter earnings Thursday of $11.68 billion, once again topping its own record for the biggest three-month profit ever by a U.S. corporation. Source: L.A. Times - Business | 1 Aug 2008 | 7:00 am Internet industry whiz Jonathan Miller in high demandThe venture capitalist is known for his shrewd judgment and deft handling of complex challenges.For 18 hours each week, Internet investor Jonathan Miller studies tai chi in New York with legendary master Ren Guang-Yi, whose devotees include Lou Reed, Bette Midler, Hugh Jackman and other celebrities. Source: L.A. Times - Business | 1 Aug 2008 | 7:00 am Second-quarter economic growth weaker than expectedGross domestic product expands at a 1.9% annual pace. The recession was 'interrupted by the rebate checks,' an economist says.The U.S. economy shrank at the end of last year, revised figures show, and although it resumed growing in the first half of this year -- mustering a 1.9% annual rate from April through June -- the expansion was weaker than most economists had expected. Source: L.A. Times - Business | 1 Aug 2008 | 7:00 am Currency: NZ dollar easesThe New Zealand dollar tracked lower today, building on the declines it has posted this year. The currency continues to trade around 10 month lows and economists continue to call it lower by year-end. By 5pm it was trading...Source: New Zealand Herald - Business | 1 Aug 2008 | 5:40 am AMP freezes property fundAMP Capital New Zealand says it is suspending redemptions and won't be accepting any new applications into one of its property funds. It comes just days after the Guardian Trust suspended one of its mortgage funds, prompting fears...Source: New Zealand Herald - Business | 1 Aug 2008 | 4:00 am Wanna Buy the Brooklyn Bridge?If Governor David Paterson has his way, New Yorkers might one day be buying their lottery tickets from the Carlyle Group private equity firm and paying their highway tolls to the Calpers pension fund or the Australian investment company Macquarie Group.While some commuters may not be comfortable with handing over the daily operation of the aging Tappan Zee Bridge to Wall Street's wizards—or with the steady toll hikes that would follow—no one can blame Paterson for trying to think outside the box. When it comes to tax revenue, New York is hurting like a broke mule. America's housing crisis and Wall Street's collateralized wealth destruction have helped to leave the state with what is expected to be about a $26.2 billion deficit over the next three years. As the governor put it in his televised chat with constituents Tuesday: "It is time for New York and other governments to cut up our credit cards. The era of buy now, pay later and later is over." Whether or not that era is truly on the wane, New York stands among a growing number of states and municipalities looking to sell now, collect sooner and later. Ballooning debt burdens and plummeting tax revenues have revived governments' interest in wringing money from their infrastructure assets. Robert Poole, director of transportation studies at the conservative Reason Foundation, said the renewed interest is natural: "As someone in Britain once said, a big fiscal crunch, like a hanging, tends to concentrate the mind." "We've been studying privatization for close to 30 years," Poole added, "and, in general, there is a strong relationship between governments being under immense fiscal stress and their interest in privatization." New Jersey, which faces a $3 billion deficit this fiscal year, is considering privatizing its lottery and raising tolls. California Governor Arnold Schwarzenegger, who is staring down a $14 billion deficit, recently promised enabling legislation to ease the ability of the state to partner with private firms to build and run its infrastructure. The recent lesson of Pennsylvania has not been lost on other states. Faced with a $1 billion deficit, that state has tentatively agreed to give a private consortium a 75-year lease to run its 537-mile turnpike. The deal, if approved by the legislature, would leave the state flush with a $12.8 billion lump-sum payment. New York's problems are particularly urgent. A main engine for economic growth in the state—Wall Street, which accounts for about one-fifth of all tax revenue—continues to drown in its own red ink; layoffs are expected to reach more than 35,000. Paterson said that taxes on bank profits, which were around $173 million in 2007, are down 97 percent. Even some skeptics of privatization think Paterson's suggestion may be appropriate. Stephen Abrecht, director of the capital stewardship program at the powerful Service Employees International Union, called it "an interesting opportunity," adding that it could be "very well suited to our large public pension funds." He added: "We just want it done the right way." From the union's standpoint, that means keeping away the Carlyles and Blackstones of the world, fearing that such private equity firms may be interested in higher returns or shorter commitments than infrastructure assets can reasonably support. So, how much could New York reap if it privatized its 651 miles of toll roads, which is among the options—along with bus services and the state lottery—being discussed? Indiana sold a 75-year lease on toll roads with about $95 million in annual revenue for $3.85 billion, or about 40 times the toll revenue. With the New York Thruway taking in about $600 million in revenue, that multiple suggests New York could get $24 billion for the system, certainly enough to plug deficit holes for some time to come. Who knows? Maybe the state could set an example for New York City, which is dogged by its own budget woes. Over the last few years it has floated a variety of ideas to deal with traffic congestion, including placing tolls on the remaining free bridges connecting Manhattan to Brooklyn and Queens. The most famous of them, the Brooklyn Bridge, would certainly fetch a few billion if the city were to slap a toll on it, as the bridge had for about three decades after it opened in 1883. There would certainly be some amount of fame—or infamy—for the first mayor to actually make good on the old gag scam to sell the Brooklyn Bridge. But privatizing a few roads won't resolve New York's current fiscal woes any more than opening up offshore exploration might cut current oil prices. Leasing assets is neither a complete fix, nor a quick one. And New York is well behind the curve. New Jersey commissioned UBS to catalog and assess its infrastructure assets in 2006, with the idea of leasebacks or sales to private firms. New York still doesn't know what assets it has, or have any real idea what they might fetch among private bidders. The only study underway was inherited from former Governor Eliot Spitzer, who wanted to explore privatizing the state lottery to fund a $4 billion public college endowment. (He didn't get far.) Otherwise, Neysa Pranger, a spokeswoman for the Regional Plan Association, a private New York organization that tracks such issues, says privatization has not really been on the state agenda. And unlike about two dozen other states, New York has twice failed to pass legislation that would define how such public-private partnerships would work or give the state's administration the right to negotiate them. That means that even if Paterson wanted to turn the New York State Thruway over to private operators, he'd first have to pilot a bill through the sclerotic state legislature. New York would also have to untangle the finances of its infrastructure assets, which often end up supporting a diverse array of unrelated and unprofitable side businesses. Since 1990, for instance, the New York State Thruway Authority has spent about $1 billion of its toll revenue on building canals, working on harbors, and dealing with other mandated economic-development projects that would still need to be funded. "Right now everything is on the table, and it's going to take some planning to decide what steps will happen next," admits Erin Duggan, a spokeswoman for Governor Paterson. That is probably the understatement of the year.Related Links Vultures of Profit Ngozi Okonjo-Iweala is Brilliant The Downside of Road Tolling Source: Portfolio.com: Top 5 | 1 Aug 2008 | 4:00 am Vector share buyback announcedVector's board says the market is undervaluing the energy company's shares so it is going to buy back 25 million of them. The company said it would announce further details of the buyback with the annual result on August 27. The...Source: New Zealand Herald - Business | 1 Aug 2008 | 3:00 am Five Star investors get good news - another 5 cents in the dollarInvestors in collapsed finance company Five Star Finance have been given some good news from receivers - they are about to get a little bit more of their money back. Receivers PricewaterhouseCoopers have written to the aggrieved...Source: New Zealand Herald - Business | 1 Aug 2008 | 2:00 am Postie Plus says full year loss will be $6.5m - $7.5mRetailer Postie Plus Group says aggressive restructuring and extremely difficult trading conditions in the second half of this year will result in a full year trading loss of between $6.5 million and $7.5 million. In addition,...Source: New Zealand Herald - Business | 1 Aug 2008 | 1:00 am Judge dismisses class-action bond interest lawsuit (AP)AP - A North Carolina judge threw out a class-action lawsuit Thursday filed by North Carolina residents seeking refunds on income tax they paid on interest generated from out-of-state bonds.Source: Yahoo! News: Business | 1 Aug 2008 | 12:21 am NZ Shares: Warehouse shares bounce, but market eases earlyShares in The Warehouse bounced in early trade today after yesterday's plunge which followed a court ruling preventing takeover bids for the retail chain from supermarket operators. Shortly after the market opened today, Warehouse...Source: New Zealand Herald - Business | 31 Jul 2008 | 11:46 pm Weak US growth adds to gloomThe US economy grew at an annualised rate of 1.9 per cent in the second quarter, faster than earlier in the year but slower than economists were expecting, the commerce department saidSource: FT.com - US homepage | 31 Jul 2008 | 11:10 pm Reality CheckThree episodes into its fifth and final season on Bravo, Project Runway may be teetering on its stilleto heels. Early ratings numbers from Nielsen indicate the show—Bravo’s crown jewel, the inspiration for the its slew of creative competition programming, and the subject of an ongoing lawsuit between NBC Universal and Runway’s producer, The Weinstein Company—isn't pulling in the viewers it traditionally has. Legal Fight Erupts Over 'Project Runway' Move Must Sue TV? What's Project Runway Worth? Source: Portfolio.com: Top 5 | 31 Jul 2008 | 11:00 pm Biggest dive for commodities in 28 yearsCommodities prices suffered their largest monthly drop in 28 years in July as crude oil prices nose-dived more than $20 from an all-time high of $147.27 a barrelSource: FT.com - US homepage | 31 Jul 2008 | 10:35 pm Arcelor considers counter-bid for AlphaArcelorMittal is considering breaking up the $8.8bn (€5.6bn) takeover of US coal miner Alpha Natural Resources by Cleveland-Cliffs with a counter-bidSource: FT.com - US homepage | 31 Jul 2008 | 10:34 pm Hubbard's message to Sth Canty investors: we're solidSouth Canterbury Finance's controlling shareholder Allan Hubbard has taken the unusual step of writing to the company's investors to reassure them of the finance company's stability and profitability in a volatile environment. The...Source: New Zealand Herald - Business | 31 Jul 2008 | 10:00 pm Menzies Says Buying ETFs Avoids Single Stocks RiskSource: Bloomberg - All Podcasts | 31 Jul 2008 | 9:34 pm VIX Index of U.S. Stock Prices Advances 8.1 % to 22.94Source: Bloomberg - All Podcasts | 31 Jul 2008 | 9:32 pm 8 Stocks Promising Growth at a Bargain (Stock Screen)We found eight stocks that hold the promise of delivering growth at a cheap price.Source: SmartMoney.com | 31 Jul 2008 | 9:18 pm The Skinny on Diet Plans (Deal of the Day)Trying to lose weight? We break down the costs of five of the most effective diet plans.Source: SmartMoney.com | 31 Jul 2008 | 9:16 pm China, India look at buying HummerDETROIT - General Motors Corp says several outside parties are interested in buying its Hummer brand, known for its huge, rugged vehicles that come with poor fuel economy. GM announced in June that it would review the brand for...Source: New Zealand Herald - Business | 31 Jul 2008 | 9:00 pm Workers' pay and benefits lagging far behind inflationSource: L.A. Times - Business | 31 Jul 2008 | 8:16 pm Yahoo shareholders on the warpathSAN FRANCISCO - Yahoo's recent truce with investor Carl Icahn didn't pacify many shareholders who remain on the warpath heading into the internet company's annual meeting Friday (US time). The slings and arrows are expected to...Source: New Zealand Herald - Business | 31 Jul 2008 | 8:00 pm MGA Seeks Bratz Mistrial After Juror's Ethnic SlurSource: Bloomberg - All Podcasts | 31 Jul 2008 | 7:58 pm Reynolds Tobacco Faces $2 Billion Renewed Litigation ClaimsSource: Bloomberg - All Podcasts | 31 Jul 2008 | 7:54 pm Janet Jackson's Breast Freed, This Time by CourtSource: Bloomberg - All Podcasts | 31 Jul 2008 | 7:50 pm A literary approach to businessAttention English majors: Turns out literature might give you a leg up in the business world. Host Kai Ryssdal talks with author Robert Coles about his collection of short stories exploring the workplace.Source: Marketplace | 31 Jul 2008 | 7:49 pm Best Beach Reads: 'The Hakawati'Our series on the best Marketplace beach reads continues with commentator Mona Eltahawy and her recommendation: Rabih Alameddine's "The Hakawati."Source: Marketplace | 31 Jul 2008 | 7:49 pm High heating oil prices loom over U.S.With heating oil prices expected to top $5 a gallon this winter, consumers are worried about heating their homes and many fuel dealers are facing the threat of collapse. Jane Lindholm reports.Source: Marketplace | 31 Jul 2008 | 7:49 pm Firms struggle to extract oil from shaleThe largest untapped oil source, enough to sustain U.S. demand for a century, may be right here at home in the Rocky Mountains. But first, we have to find a way to get it out. Janet Babin reports.Source: Marketplace | 31 Jul 2008 | 7:49 pm Solar breakthrough simplifies storageScientists at MIT have made a breakthrough which may solve the biggest hurdle to the mass adoption of solar energy: a more efficient way to store it for later use. Dan Grech reports.Source: Marketplace | 31 Jul 2008 | 7:49 pm States sue EPA over lax policiesFive states are suing the EPA, accusing the agency of ignoring their requests to restrict pollution from ships, airplanes and off-road vehicles. Renita Jablonski reports.Source: Marketplace | 31 Jul 2008 | 7:49 pm Bill proposes FDA oversight of tobaccoA bill that would give the FDA power to regulate tobacco products cleared the House and will be taken up by the Senate in the fall. What would the measure mean for the tobacco industry? Steve Henn reports.Source: Marketplace | 31 Jul 2008 | 7:49 pm Credit card users cutting backVisa and MasterCard are still making plenty off our credit card use, but both companies report we're slowing our swiping of the plastic. Amy Scott reports.Source: Marketplace | 31 Jul 2008 | 7:49 pm Taco Bell Sued by Rapper `50 Cent' Over Persona in PromotionSource: Bloomberg - All Podcasts | 31 Jul 2008 | 7:46 pm ING disclosureING Medical Properties Trust yesterday disclosed a decline in the value of its properties but said it had been largely offset by higher rents. The trust has also increased credit facilities and announced its fourth quarter distribution....Source: New Zealand Herald - Business | 31 Jul 2008 | 7:30 pm Raising the BarThe economy is flagging, markets are tumbling, credit is scarce—but some chief executives are still walking out the door with paychecks that don't reflect how the company is doing. And that's not likely to change anytime soon.That opinion is from Paul Hodgson, an executive compensation expert who works for independent research firm, The Corporate Library, which just issued a report gauging whether companies have made improvements in linking C.E.O. pay to performance. "There has been a shift away from stock options and to other kinds of long-term incentives that are tied to performance," he said. "I don't think we'd give anybody an 'A,' but some companies are improving." What companies need most is to strictly tie compensation to performance—so pay doesn't go out the door first, as it commonly does now, and then the company is left, using clawback provisions, trying to recoup wrongly awarded pay at a later point. "The most specific improvement needed is that if a company has incentive pay, it is only paid out when the performance really merits it," he said. "If they are comparing themselves to peers, they have to outperform half of them rather than just a quarter of them." His latest report looks at how 11 big-name companies, including AT&T, Verizon and Wal-Mart, have done since the Corporate Library first examined them for a March 2006 study called "Pay for Failure." The 11 companies were chosen because their chief executives had been richly compensated for subpar performance. Since then, nine of the companies—not including Merck and Safeway—have revised their pay policies, adding clawback provisions, moderating severance benefits, and tying more pay directly to performance. Some of the changes were due to shareholder protests. But Hodgson noted that "many of the changes could be classified as window dressing—changes that might have some effect in the future but are unlikely in the short term to tie pay more closely to performance." About half the companies, the 35-page report noted, "were afflicted with what might be termed [General Electric] disease, in reference to the G.E. board's decision to tie C.E.O. Jeffrey Immelt's long-term pay closer to performance without affecting the compensation of other named executive officers." That happened at AT&T, Home Depot, Merck, Pfizer, and Time Warner, according to the report, called "Where Are They Now? An Update on Compensation Policy at the Original Pay for Failure Companies." Okay, so why is change so tough for big-name companies? "It requires the board to make fairly significant changes," said Hodgson. "If the executives have to better half of their peers, then the other half won't get anything." Even with more shareholder scrutiny and more federal disclosure requirements, Hodgson said he does not foresee sweeping changes. "Executives are not used to not getting bonuses," he said. "It's harder to say 'we're not giving you a pay raise this year' than the opposite. There's no one director on the compensation committee who wants to be the one to break the bad news." The only way the logjam might be broken, Hodgson believes, is if "say on pay" legislation—favored by both presidential candidates—were to pass Congress, and shareholders were given a bigger voice on how pay is set and monitored. "That would be something that would galvanize companies," Hodgson predicted.Related Links More C.E.O.'s Facing the Ultimate Penalty It's the Math, Stupid You'll Never Guess for Whom the Bonus Tolls Source: Portfolio.com: Top 5 | 31 Jul 2008 | 7:00 pm Elizabeth Economy Calls Olympics a `Nightmare' for ChinaSource: Bloomberg - All Podcasts | 31 Jul 2008 | 6:19 pm Franulovich Says Australian Terms of Trade at Generational HighSource: Bloomberg - All Podcasts | 31 Jul 2008 | 5:59 pm MoMA's `Home Delivery' Examines Prefabricated HousingSource: Bloomberg - All Podcasts | 31 Jul 2008 | 5:25 pm Resist Temptation, CarlOh, the conundrum, Carl! You have been agitating for a sale of ImClone for so long now, it must have been thrilling to receive the $60-per-share offer from Bristol-Myers Squibb this morning.Victory at last. And a 30 percent premium is no small bounty, especially considering you made your investment in the drug company when the stock was in the $20s and $30s two years ago. But now investors are hoping you'll hold out for more, which ought to be awfully tempting to a guy like you. ImClone shares climbed as high as $65 after the news of the offer, which is the market's not-so-subtle way of telling you it thinks the company is worth more. Don't listen. If you push for more, some people might start comparing you to Jerry Yang. Yes, the Yahoo chief was unable to resist the temptation to demand more from Microsoft, and look what it got him: a seat right next to you at future Yahoo board meetings. In your words, it's "the beginning of a beautiful friendship." In Yang's hypothetical words, it's "hell." So don't skip a beat on this offer, Carl. Say yes to Bristol-Myers immediately. Retire your chairman seat with the sale of ImClone just as you begin to warm up another at Yahoo. Related Links Yahoo: UPPER-CASE Icahn v. lower-case yang Bloody Jerry Suite Revenge Source: Portfolio.com: Top 5 | 31 Jul 2008 | 3:30 pm
|
