Xstrata launches $10 billion bid for platinum producer Lonmin

Swiss-based mining group Xstrata Wednesday launches an unsolicited $10 billion takeover bid for London-based miner Lonmin in an effort to accelerate its platinum growth strategy.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 11:23 am

Mortgage applications up slightly last week, MBA data show

Last week's volume of mortgage applications shows slight improvement, increasing a seasonally adjusted 2.8% compared with the week before, Mortgage Bankers Association data show.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 11:20 am

Sprint posts quarterly loss, revenue falls

NEW YORK (Reuters) - Sprint Nextel posted a second-quarter loss on Wednesday as revenue fell but the No. 3 U.S. mobile service lost fewer subscribers than expected.

Source: Reuters: Business News | 6 Aug 2008 | 11:17 am

Merrill will have to cut dividend : Bernstein

(Reuters) - Merrill Lynch & Co Inc will have to cut its common dividend per share 64 percent by 2010 as the high dividend payout will hurt the U.S. investment bank and brokerage's long-term growth prospects, analyst Brad Hintz of Sanford C. Bernstein said.

Source: Reuters: Business News | 6 Aug 2008 | 11:14 am

Xstrata launches $10 billion bid for Lonmin

LONDON (Reuters) - Acquisitive miner Xstrata unveiled a $10 billion takeover bid for the world's third-biggest platinum producer, Lonmin , to diversify its business from industrial metals such as copper.

Source: Reuters: Business News | 6 Aug 2008 | 11:14 am

Europe Markets: Miners help European shares cling to gains

European shares advanced on Wednesday as Xstrata injected new life into mining-sector M&A with a $10 billion bid for Lonmin.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 11:13 am

Freddie Mac reports loss of $821 million (Reuters)

Reuters - Freddie Mac on Wednesday posted its fourth consecutive quarterly loss, set plans to slash its common stock dividend and warned of more difficulty ahead amid the steepest U.S. housing market slump since the Great Depression.

Source: Yahoo! News: Business | 6 Aug 2008 | 11:12 am

Freddie Mac reports loss of $821 million

NEW YORK (Reuters) - Freddie Mac on Wednesday posted its fourth consecutive quarterly loss, set plans to slash its common stock dividend and warned of more difficulty ahead amid the steepest U.S. housing market slump since the Great Depression.

Source: Reuters: Business News | 6 Aug 2008 | 11:11 am

Lonmin spurns proposed £5bn Xstrata offer

Shares in the FTSE 100-listed platinum producer jumped after Swiss-based Xstrata unveiled an unsolicited takeover proposal at a 42% premium, taking advantage of the recent fall in Lonmin's shares
Source: FT.com - US homepage | 6 Aug 2008 | 11:11 am

Time Warner to split AOL in two, beats estimates (Reuters)

Reuters - Time Warner Inc said it would split AOL's dial-up Internet and advertising businesses into separate divisions by early 2009 and reported a slightly higher-than-expected quarterly profit, citing strong cable advertising sales and films like "Sex and the City."

Source: Yahoo! News: Business | 6 Aug 2008 | 11:05 am

Time Warner to split AOL in two, beats estimates

NEW YORK (Reuters) - Time Warner Inc said it would split AOL's dial-up Internet and advertising businesses into separate divisions by early 2009 and reported a slightly higher-than-expected quarterly profit, citing strong cable advertising sales and films like "Sex and the City."

Source: Reuters: Business News | 6 Aug 2008 | 11:05 am

Time Warner profit slides 26%

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 11:01 am

Food price inflation spirals to 9.5 per cent

Food price inflation has surged to a record 9.5 per cent in the year to July as supermarkets pass on higher energy and transport costs to their customers.
Source: Latest Business News from Times Online | 6 Aug 2008 | 11:01 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 | 6 Aug 2008 | 11:01 am

Stocks set to falter

Stock futures lost ground Wednesday after battered mortgage finance giant Freddie Mac reported a wider-than-expected quarterly loss.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 10:59 am

More misery for US mortgage firm

Freddie Mac, which provides the finance for a large proportion of US mortgages, reported another quarterly loss amid continued misery in the housing market.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 10:58 am

New Yahoo election tally reveals big protest vote

SAN FRANCISCO (Reuters) - Yahoo Inc on Tuesday released a recount of the vote for its board that revealed a strong protest vote against five of nine directors, including Chief Executive Jerry Yang.

Source: Reuters: Business News | 6 Aug 2008 | 10:58 am

Time Warner profit drops 26%, holds outlook

Time Warner Inc. reports Wednesday that second-quarter net income dropped 26% on declining profits from its AOL and publishing arms.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 10:57 am

Shades of Green: Addiction to cheap airfares is causing our own travel ruin

Return for a moment to 1981 and the dawn of airline deregulation: People Express launches a no-frills service with $29 regional one-ways and $99 coast-to-coast fares cheap enough for almost anyone to fly.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 10:56 am

Freddie Mac reports $821 million loss, plans dividend cut

Freddie Mac, the second-biggest buyer of U.S. mortgages, reports a second-quarter loss of $821 million on Wednesday, as the battered housing market and slumping credit conditions again pummeled the company’s bottom line.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 10:55 am

Commerzbank warns of German slowdown

Commerzbank heightened fears for Europe's biggest economy as Germany's second-largest bank warned that the global slowdown had reached its home market.Eric Strutz, chief financial officer, repeated that...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 10:50 am

AP Executive Morning Briefing

Fed leaves rates alone for second straight meeting WASHINGTON (AP) _ For a second straight meeting, the Federal Reserve has decided to remain on the sidelines and leave interest rates...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:49 am

Xstrata makes $10 billion bid for Lonmin

Anglo-Swiss mining giant Xstrata PLC said Wednesday it was making a $10 billion cash offer for Lonmin PLC, the world's No. 3 platinum producer. The offer sent Lonmin shares soaring 47.3...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:48 am

FTSE 100 pensions 'back in red'

Pension funds of FTSE 100 firms are in the red after the biggest funding swing since 2002, a report claims.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 10:48 am

Fed leaves rates unchanged

The Federal Reserve left a key short-term interest rate unchanged Tuesday and cited both the risk of a slowing economy and inflation pressures, a sign that the central bank may keep rates steady for the next few months.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 10:47 am

Time Warner 2Q net drops 26 percent

Time Warner Inc. says second-quarter earnings fell 26 percent on declining subscriber fees at its AOL online unit and lower ad revenue at the Time publishing business. The company...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:47 am

Freddie Mac swings to 2Q loss

Mortgage financier Freddie Mac swung to a second-quarter loss larger than Wall Street's expectations. The McLean, Va.-based company says it lost $821 million, or $1.63 per share, for the
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:46 am

Ambac quarterly net income rises sharply

NEW YORK (Reuters) - Ambac Financial Group , a bond insurer, said on Wednesday that second-quarter earnings rose sharply, helped by valuation gains on credit derivatives.

Source: Reuters: Business News | 6 Aug 2008 | 10:43 am

Oil holds near 3-month low

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 10:42 am

Japan's Cabinet Office says economy 'deteriorating'

Japan’s government downgrades its assessment of the second-largest global economy to “worsening,” acknowledging that the expansion that’s run more than six years may be at an end.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 10:35 am

Freddie: Losses soar, dividend slashed

Mortgage finance giant Freddie Mac reported a much bigger than expected second quarter loss early Wednesday and slashed its dividend, signaling continued woes for the housing and financial markets.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 10:32 am

Indications: U.S. futures mixed after Tuesday's rally; Cisco climbs

U.S. stock futures were mixed on Wednesday after the last session’s charge higher, with expected losses from mortgage giant Freddie Mac and bond insurer Ambac Financial putting housing-related turmoil back in the spotlight.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 10:31 am

Freddie Mac (FRE) Earnings: The Gathering Storm

Freddie Mac's (FRE) results undercut any hope that things at the quasi-governmental agency would get better soon. Actually, they were an indication that the Treasury will have to get into the act sooner and not later. The firm posted a net loss of $821 million for the quarter ended June 30, 2008, compared to net income of $729 million in the same period last year. Freddie Mac said it remain committed to raising $5.5 billion of new capital and will evaluate raising capital beyond that amount depending on the market. That means things will get worse and the $5.5 billion...
Source: 24/7 Wall St. | 6 Aug 2008 | 10:28 am

BNP earnings beat expectations

BNP Paribas, France's largest bank, on Wednesday confirmed its relative resistance to the credit crunch by unveiling second quarter profit that was down 34 per cent, but ahead of analysts' expectations...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 10:28 am

Support for working mums is falling, a report suggests

Attitudes to working mothers are becoming less favourable, a survey from Cambridge University suggests.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 10:26 am

Cathay goes from profit to loss

Hong Kong-based airline Cathay Pacific reports a loss for the first half of the year after being hit by higher fuel prices.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 10:19 am

Ambac quarterly net income rises sharply (Reuters)

Reuters - Ambac Financial Group , a bond insurer, said on Wednesday that second-quarter earnings rose sharply, helped by valuation gains on credit derivatives.

Source: Yahoo! News: Business | 6 Aug 2008 | 10:18 am

Ambac quarterly net income rises sharply

NEW YORK (Reuters) - Ambac Financial Group , a bond insurer, said on Wednesday that second-quarter earnings rose sharply, helped by valuation gains on credit derivatives.
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:18 am

Avery Dennison Unveils Redesigned Consumer Website at Avery.com

Improved Site Navigation and Ability to Review Products & Software Online Among New Features BREA, Calif., Aug. 6 /PRNewswire/ -- Avery Dennison today unveiled the ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:15 am

Currencies: Euro sees small rebound as traders await central banks

LONDON (MarketWatch) -- With the Federal Reserve's rate-setting meeting out of the way currency traders have turned their attention to the European Central Bank and the Bank of England, which are both expected to leave key rates on hold Thursday.

Source: MarketWatch.com - Top Stories | 6 Aug 2008 | 10:11 am

Time Warner beats Street view, to split AOL

NEW YORK (Reuters) - Time Warner Inc reported a slightly higher-than-expected quarterly profit, citing strong cable advertising sales and films like "Sex and the City," and the media...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:05 am

Lonmin snubs £5bn Xstrata offer

Anglo-African platinum miner Lonmin rejects a £5bn ($10bn) takeover offer from larger rival Xstrata, calling it unwelcome.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 10:04 am

Miners sustain FTSE rally

London equities continued to make progress on Wednesday, with fresh bid activity in the mining sector lighting up the leaderboard. The FTSE 100 was 0.3 per cent higher at 5,468.4 in morning trade, a rise...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 10:04 am

Morgan Stanley (MS): Stealing Home-Equity Loans

Morgan Stanley (MS) has gone to some of its private clients and told them they cannot borrow more on their home equity lines of credit. The customers thought they had signed up for the deals so that they would have money to access in the future when they needed it for things like college education or a new yacht. The brokerage house reasons that many of the homes belonging to these people are not worth the value of the mortgages. That would make the secondary loans on the properties pretty risky.
Source: 24/7 Wall St. | 6 Aug 2008 | 10:03 am

Lonmin spurns proposed 5bn Xstrata offer

Lonmin on Wednesday rejected an unsolicited 5bn ($9.8bn, 6.3bn) takeover proposal from Swiss-based miner Xstrata, which earlier unveiled a proposed 33 a share cash offer for the FTSE 100-listed platinum...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 10:03 am

FTI Consulting, Inc. Reports Record Results

Second Quarter Revenue of $337.7 Million, Operating Income of $67.3 Million, EBITDA of $77.6 Million and Diluted EPS of $0.66 All Set New Highs Reaffirms Guidance ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:00 am

Naval Academy Expands Yard Card Program

Revolutionary program now includes online aspect and additional locations ANNAPOLIS, Md., Aug. 6 /PRNewswire/ -- The dynamic stored-value card program launched at the
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:00 am

U.S. Concrete Reports Second Quarter 2008 Results

HOUSTON, Aug. 6 /PRNewswire-FirstCall/ -- U.S. Concrete, Inc. (Nasdaq: RMIX) today reported net income from continuing operations of $3.3 million, or $0.08 per diluted...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Aug 2008 | 10:00 am

Xstrata launches $10 billion bid for Lonmin (Reuters)

Reuters - Acquisitive miner Xstrata unveiled a $10 billion takeover bid for the world's third-biggest platinum producer, Lonmin , to diversify its business from industrial metals such as copper.

Source: Yahoo! News: Business | 6 Aug 2008 | 9:56 am

Quake relief links aid Inmarsat

Satellite communications firm Inmarsat reports strong quarterly revenues, aided by providing mobile services in disaster areas.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 9:55 am

Why you shouldn't sue over bad advice

I am frequently asked by clients if they should sue their previous adviser. This question usually comes up right after I've shown them how badly their portfolio has performed - and pointed out that the high fees they were paying only transferred their wealth to others. The client sits across from me in shock and says that his old adviser never disclosed those fees, or that she misrepresented how risky the investments were. That's when I get the lawsuit question.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 9:48 am

Banking's Next Big Tempest: Auction-Rates

Misery acquaints a man with strange bedfellows.—Shakespeare, “The Tempest” Auction-rate securities were one of the great inventions of modern banking. By taking long-term bonds and putting them together into a stew, the banks made short-term instruments with better yields than cash. The key to the market for such things is that it was liquid, trading regularly from 1985 until early this year. If some auction-rates were not sold in one exchange, they were held by banks and sold at the next.
Source: 24/7 Wall St. | 6 Aug 2008 | 9:46 am

South Africa Strike Hits Mining and Factories

South Africa's giant mining companies were badly hit by a strike on Wednesday over rising power, food and fuel prices that threatened to bring the continent's biggest economy to a standstill.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 9:40 am

Detroit's Big 3 face bankruptcy fears

It's been a bumpy road for Detroit's Big Three automakers for the past few years. But it may get worse.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 9:33 am

Lonmin rebuffs Xstrata £5bn bid as 'opportunistic'

Platimum producer Lonmin has slammed a £5bn bid from mining company Xstrata as "opportunistic and unwelcome."
Source: Telegraph Business | 6 Aug 2008 | 9:31 am

Lonmin rebuffs Xstrata 5bn bid as 'opportunistic'

Platimum producer Lonmin has slammed a 5bn bid from mining company Xstrata as "opportunistic and unwelcome."
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 9:31 am

Old Mutual makes £107m hedging loss after falls in Asian markets

A botched hedging strategy has left Old Mutual nursing losses of £107 million, the London-listed life assurer revealed today.
Source: Latest Business News from Times Online | 6 Aug 2008 | 9:13 am

Cisco sees earnings beat forecast

Internet equipment maker Cisco Systems reports better-than-forecast results and signals strong growth ahead.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 9:10 am

Futures flag flat opening for stocks

(Reuters) September Dow Jones and Standard & Poor's futures were roughly flat on Wednesday, suggesting the blue-chip indexes may get off to a steady start after Tuesday's hefty gains.

Source: Reuters: Business News | 6 Aug 2008 | 9:10 am

ITV loss sends shares plunging

The poor outlook for the advertising market caused ITV on Wednesday to take a 1.6bn impairment charge against goodwill, forcing the commercial broadcaster to report a huge loss for the first six months...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 9:04 am

Tropical Storm Forces Closures in Hong Kong

The approach of severe tropical storm Kammuri affected businesses, government offices, financial markets and schools.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 8:38 am

Asciano says it has other offers for assets

Asciano, the Australian-listed ports and rail group that this week rejected a A$2.9bn buyout bid led by TPG, said a number of parties had shown interest in its assets.Mark Rowsthorn, Asciano chief executive,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 8:38 am

Xstrata bids $10B for miner Lonmin

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 8:32 am

Apparel sales fall in July: MasterCard (Reuters)

Reuters - U.S. sales of clothes and shoes fell in July as cash-strapped consumers cut back spending further to pay for nondiscretionary purchases such as food and gasoline, MasterCard Advisors said in a report on Wednesday.
Source: Yahoo! News: Business | 6 Aug 2008 | 8:27 am

Hunting to sell Canadian unit

Hunting on Wednesday said it would sell Gibson Energy, its mid-stream Canadian business, to a group of private equity funds managed by Riverstone for 626m.The news sent shares in the energy services group...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Aug 2008 | 8:21 am

Morgan Stanley to freeze home-equity credit lines: report

(Reuters) - Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified.

Source: Reuters: Business News | 6 Aug 2008 | 8:20 am

11 charged in massive card fraud ring

Eleven people, including three U.S. citizens, were indicted Tuesday on a number of charges in connection with the hacking of nine major U.S. retailers and the theft and sale of more than 40 million credit and debit card numbers, federal authorities said.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 8:15 am

Pension gap

Why some OAPs work beyond retirement age
Source: BBC News | Business | World Edition | 6 Aug 2008 | 8:08 am

Yahoo recount: More votes against Yang

Thirty-four percent of shareholder votes cast opposed Jerry Yang's re-election to Yahoo's board. By Yi-Wyn Yen.

Source: Business and financial news - CNNMoney.com | 6 Aug 2008 | 8:06 am

Media Digest 8/6/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, a new tally of votes for the Yahoo! (YHOO) board election shows a high percentage of protest votes. Reuters reports that the Fed held rates steady and indicated it would not raise rates soon. Bloomberg writes that Morgan Stanley (MS) has frozen some of its customers' home equity loans.
Source: 24/7 Wall St. | 6 Aug 2008 | 7:42 am

ITV predicts ad slowdown

Broadcaster ITV says half-year profits fell 28% and predicts this autumn's advertising revenue will be much lower than last year.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 7:42 am

BAA gets backing to refinance £4.7bn debt burden helped by airport income

BAA, the airports operator, has received approval from bondholders to refinance its massive debt burden.
Source: Latest Business News from Times Online | 6 Aug 2008 | 7:41 am

Xstrata makes £5bn bid for platinum producer Lonmin

Xstrata has made an unsolicited £5bn bid for Lonmin, the platinum producer.
Source: Telegraph Business | 6 Aug 2008 | 7:31 am

ITV slashes dividend on advertising slump

ITV, Britain's largest commercial broadcaster, has been forced to slash its dividend and its growth targets after plunging into a £1.5 billion loss in the first six months of 2008 and announcing advertising revenue will fall by 20 per cent in September.
Source: Latest Business News from Times Online | 6 Aug 2008 | 7:30 am

ITV, Lonmin, BNP Paribas: Business roundup Aug 6

Britain's biggest commercial broadcaster, has reported an almost 30pc drop in pre-tax profits and announced plans to cut costs further by the end of the year as the advertising market suffers. Michael Grade, ITV's executive chairman, said: "We cannot control the economic environment in which we operate.
Source: Telegraph Business | 6 Aug 2008 | 7:30 am

Asia Markets 8/6/2008 (HMC)

Markets in Asia were higher with Hong Kong closed due to bad weather. The Nikkei rose 2.6% to 13,255. Canon was up 5% to 5090. Honda (HMC) was up 3.9% to 3440. Sanyo was up 10.1% to 228. Sharp was up 5.1% to 1358. The Shanghai Composite was up 1.1% to 2,719. Data from Reuters. Douglas A. McIntyre
Source: 24/7 Wall St. | 6 Aug 2008 | 7:18 am

Standard Life lifts the payout for 1.5m investors

Standard Life's army of small shareholders will receive a 7 per cent interim dividend increase after the life assurer lifted operating profits on the back of strong sales growth and the winning of more investment management mandates.
Source: Latest Business News from Times Online | 6 Aug 2008 | 7:08 am

Cisco Systems posts 4% profit gain

Cisco Systems Inc. reported a 4% increase in quarterly profit Tuesday, beating analysts' expectations by a penny a share, but signaled that the weak economy would affect results in the next few quarters.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

Olympic spending unlikely to be a drag on China

Analysts note that Beijing represents a tiny slice of the economy. How the country reacts to protests, however, could affect foreign investment.

The annals of Olympic venues are rife with financial horror stories. All but one of the last 11 host nations had an economic hangover of sorts after the Summer Games ended, according to investment bank Morgan Stanley.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

A stone wall made of potato chips

For years, snack makers fought a California suit to cut back levels of the cancer-causing chemical acrylamide.

California Atty. Gen. Jerry Brown announced last week that he'd settled lawsuits against leading makers of potato chips and French fries over levels of a cancer-causing chemical in their products.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

News Corp. posts 27% rise in its fiscal fourth-quarter net income

The media company's results beat Wall Street estimates. Earnings are boosted by the sale of its stake in Gemstar-TV Guide and higher income from its film, cable networks and newspaper groups.

News Corp. reported a 27% jump in its fiscal fourth-quarter net income Tuesday, fueled by proceeds from the sale of its stake in Gemstar-TV Guide International Inc., as well as double-digit growth from its film, cable networks and newspaper groups.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

11 charged in largest ID theft in U.S. history

More than 40 million debit and credit card account numbers were stolen from major retailers. Fraud is estimated in the tens of millions of dollars.

Federal authorities said Tuesday that they had cracked the largest case of identity theft in U.S. history, charging 11 people in the theft of more than 40 million credit and debit card account numbers from computer systems at such major retailers as TJ Maxx and Barnes & Noble.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

'Pineapple Express' seeks to track down 'Dark Knight'

Sony's comedy aims to derail the momentum of Warner Bros.' record-breaking Batman.

When "The Dark Knight" recently broke the opening weekend box-office record with $158.4 million in sales, Warner Bros. snatched bragging rights from Sony Pictures, whose "Spider-Man III" had held the mark since summer 2007.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

Wall Street boosted by good news

Consumer stocks lead market rally as the Fed keeps rates steady and oil prices drop again.

American consumers got a rare double dose of good news Tuesday, triggering a broad stock market rally that sent the Dow Jones industrial average up more than 330 points.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

L.A. Live lures conventions downtown

Bookings increase as night life and developments grow.

The old sales pitch to lure conventions to downtown Los Angeles had an air of desperation to it: Please, please come to sunny L.A.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

Ontario airport hit hard by industry downturn, high fuel costs

The Inland Empire facility's expected one-third drop in flights by fall is irritating travelers.

Not long ago LA/Ontario International Airport was setting growth records. Airlines flocked to the Inland Empire airfield in what Los Angeles Mayor Antonio Villaraigosa hailed as the "great first steps" to regionalizing air travel in Southern California.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

Carly Fiorina tests her political mettle as McCain advisor

Touted by some as candidate material herself, the dynamic former Hewlett-Packard CEO has sparkled, and stumbled, in her new role.

A self-described "change warrior," Carly Fiorina has been a law school dropout, a real estate broker, an English teacher, a telecommunications executive and the first woman to be hired, then fired, as chief executive of a Fortune 20 company.

Source: L.A. Times - Business | 6 Aug 2008 | 7:00 am

BNP profits hit by write-downs

French bank BNP Paribas sees quarterly profits fall 34% after it writes down the value of assets hit by the global credit crunch.
Source: BBC News | Business | World Edition | 6 Aug 2008 | 6:37 am

Lonmin rejects Xstrata's £5bn cash bid

Lonmin this morning strongly rejected a £5 billion cash bid by Xstrata, the Swiss mining group, labelling the offer as "opportunistic and entirely unwelcome".
Source: Latest Business News from Times Online | 6 Aug 2008 | 6:25 am

Britain's biggest pension schemes turn surplus into £41 billion black hole

Retirement plan funding for FTSE100 companies showed the deficit in mid-July compared to a £12 billion surplus a year earlier, according to figures from consultancy firm Lane Clark & Peacock.
Source: Telegraph Business | 6 Aug 2008 | 6:01 am

Morgan Stanley to freeze home-equity credit lines: report (Reuters)

Reuters - Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified.

Source: Yahoo! News: Business | 6 Aug 2008 | 5:24 am

Morgan Stanley to freeze home-equity credit lines: report (Reuters)

Reuters - Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified.

Source: Yahoo! News: Business | 6 Aug 2008 | 5:24 am

Citi talks with regulators may lead to buybacks: report

(Reuters) - Citigroup Inc is in talks with state and federal regulators to resolve allegations of wrongdoing in the auction-rate-securities market that could result in its buying back several billion dollars of the illiquid securities, Wall Street Journal said.

Source: Reuters: Business News | 6 Aug 2008 | 5:03 am

Bridgecorp founder back in court on bankruptcy filing

Bridgecorp executive director Rod Petricevic faces bankruptcy proceedings in the High Court in Auckland tomorrow. It is one of three legal actions he faces, the others being a prosecution for alleged offences under the Securities...
Source: New Zealand Herald - Business | 6 Aug 2008 | 4:56 am

Citigroup might reverse research split

Citigroup is working on a plan that would shift its equity research operations into its institutional securities business, reversing a reform implemented earlier this decade amid regulatory scrutiny of Wall Street conflicts of interest
Source: FT.com - US homepage | 6 Aug 2008 | 4:04 am

American Eyeful

American Apparel could be the bane of Rupert Murdoch. Its success stems from his web division’s weakness.
 
The clothing company, known for ads resembling 1980s porn and for the pervy antics of controversial founder Dov Charney, is seeing sales climb as it buys up more cheap ad space on sites such as MySpace and Facebook than any other U.S. apparel retailer.
 
In April alone, it placed 483 million Internet display ads in April–more than heavyweights such as Nike and Levi Strauss & Co., according to new data from comScore Ad Metrix. American Apparel also had the lead in March and came in second in February and January.         
 
To get such huge web reach, though, the chain spent just $333,000 during the first quarter, reports TNS Media Intelligence, a market research group. That’s six times less than Nike, which weighed in at 61 million display ads to 18 million unique web users.
         
Those numbers are big, but sites such as MySpace and Google’s YouTube still are grappling with ways to turn their young, cool, but often poor masses of readers into cash cows. Even as News Corp. reported solid results from its web division Tuesday, much of the loot is being spent developing new features and ventures.
 
Now for the money shot–in spite of the lack of consumer confidence and recessionary pressure in this country, American Apparel’s sales are up.
 
In the first quarter of 2008, American Apparel's U.S. retail operations increased $11.9 million, or 56.1 percent, compared to the same period in 2007, according to the company’s SEC filings. The chain added stores, growing to 106 at the end of March 2008, from 93 the year before. In April, American Apparel reports comparable store sales up 27 percent over the prior year period.
       
It’s hard to know how much Internet advertising boosts in-store sales–American Apparel didn’t comment for this story. But it’s easy to see that the company is getting a lot of advertising for a small budget. The trick, at least in April, was placing nearly half of the ads either on Facebook or on Fox Interactive Media, which includes MySpace.
          
“MySpace has lots and lots of display advertising sold for very, very low rates,” says Debra Aho Williamson, senior analyst at market research company eMarketer. “There’s just a huge amount of inventory.”
       
Peter Chernin, president and chief operating officer of News Corp. touched on this challenge in May after admitting Fox Interactive Media would fall short of its “aggressive” revenue projections. “As pages on MySpace and Facebook continue to grow, the lack of scarcity creates a liquidity challenge,” he says.
       
The moral of the story is that buzz doesn’t distribute the wealth evenly, and the company branded by scantily clad girls will probably win.
Related Links
MySpace and Friends Need to Make Money. And Fast.
MySpace Is This, And Your Space is That
Facebook Page? Or Exhibit A in Court?


Source: Portfolio.com: Top 5 | 6 Aug 2008 | 4:00 am

11 charged in huge US internet credit card scam

Eleven people, including a US Secret Service informant, have been charged in connection with the hacking of nine major retailers and the theft and sale of more than 41 million credit and debit card numbers, the Justice Department...
Source: New Zealand Herald - Business | 6 Aug 2008 | 2:30 am

Auckland house prices drop over 5pc - report

Auckland's largest real estate agency group, Barfoot and Thompson, has reported that its average sale price fell 5.3 per cent to NZ$497,479 in July from NZ$525,316 in June as sellers start to to adjust their price expectations. Barfoot...
Source: New Zealand Herald - Business | 6 Aug 2008 | 2:30 am

NZ's credit rating confirmation welcomed by Cullen

The affirmation of New Zealand's sovereign credit rating by Standard & Poor's today was a vote of confidence during challenging times, Finance Minister Michael Cullen said today. S&P affirmed New Zealand's "AA plus/A-1...
Source: New Zealand Herald - Business | 6 Aug 2008 | 2:00 am

All sweet for public servants, research shows

Public servants earn more than private sector workers and have a "warm glow" from a belief that their work is useful to society. This is according to research by Waikato University's Management School, which argues public sector...
Source: New Zealand Herald - Business | 6 Aug 2008 | 1:30 am

Eleven charged in US over ID theft

US prosecutors said they had charged 11 people in connection with a hacking ring that allegedly stole and sold more than 40m credit and debit card numbers from nine US retailers in what could be the country's biggest identity theft case
Source: FT.com - US homepage | 6 Aug 2008 | 12:53 am

Société Générale beats forecasts

Société Générale, the French bank hit by the world’s worst rogue trading scandal earlier this year, buoyed investors with better-than-expected second-quarter results despite massive losses in its investment banking operation.
Source: Telegraph Business | 6 Aug 2008 | 12:01 am

VAT reform threatens jobs of charity staff

The Treasury has "grossly underestimated" the cost of imposing VAT on the wages of temporary social care and charity workers, locum doctors and financial services staff and if it pushes ahead it will lead to significant job losses, the recruitment industry has warned.
Source: Telegraph Business | 6 Aug 2008 | 12:01 am

Rock demise now a laughing matter

A flash of genius on Robert Peston's BBC blog, not by the ex-Telegraph business hack this time, but one of his contributors. A certain PetersKitchen writes about Northern Rock:
Source: Telegraph Business | 6 Aug 2008 | 12:01 am

Oddbins sale uncorks new family chapter

Oddbins, the loss-making wine retailer, has been sold to a consortium of investors led by the son of a former managing director of the company.
Source: Telegraph Business | 6 Aug 2008 | 12:01 am

Oil slides as Federal Reserve keeps interest rates at 2pc

Crude oil prices continued their retreat from record high as traders bet that a year of record prices will eventually hit demand
Source: Telegraph Business | 6 Aug 2008 | 12:01 am

Barclays to sell life arm to Swiss Re for £753m

Swiss Re has agreed to pay £753m for Barclays' life assurance arm as it pushes for growth despite posting a substantial decline in profit on the back of fresh writedowns.
Source: Telegraph Business | 6 Aug 2008 | 12:01 am

News Corp.: Fine, for Now

Despite a difficult economic environment and a significant decline in income from its television operations, News Corp. said full-year earnings per share rose 68 percent today.

In a breezy conference call from Beijing, chief executive Rupert Murdoch, C.O.O. Peter Chernin and C.F.O. David Voe glossed over weak local advertising that has plagued many smaller TV stations.

Chernin did concede that the local ad market was down 10 percent in the fourth quarter of this fiscal year, that 2009 looks weak, and that the automotive, telecom, and financial services advertising sectors were particularly hard hit.

"Overall, the local advertising market is highly challenged at the moment," Chernin admitted, predicting that revenue for News Corp.'s local TV stations might be down by mid-single digits in 2009.

Despite that, he said, car companies are still emphasizing national advertising, and the overall outlook for News Corp.'s Fox broadcasting unit—which just finished its fourth season as the most-watched TV network—is brighter, with a promising slate of fall programming and Coke, Ford and AT&T, the big three sponsors of Fox's hit show American Idol, all locked in for the new season.

The company's movie and TV production division finished the year with a $1.25 billion operating profit, its seventh straight record. For that, executives thanked the writers' strike, which cut down on programming costs, as well as the success of Juno and The Simpsons Movie (which more than offset losses from stinkers like The Happening and What Happens in Vegas.

Best sellers like James Frey's Bright Shiny Morning helped the company's book publishing division squeak ahead last year's operating income by just $1 million.

For many analysts and investors, the big question going into the call was: When will MySpace show them the money? News Corp. doesn't break out numbers, but does say that Fox Interactive Media—which encompasses MySpace—had revenue growth of 57 percent and increased operating profits five-fold.

DeVoe said technical costs, international expansion, and new features associated with MySpace defrayed the site's gains slightly. Still, the site continues to attract users and advertisers: In May it reached an all-time high in the number of unique visitors.

At the same time, "homepage takeovers," in which a single advertiser dominates the home page, are becoming increasingly popular (Warner Brothers scored 70 million streams of The Dark Knight film trailer this way).

Also in the works: a new digital delivery system for content from Dow Jones. Apart from which, the new acquisition was hardly mentioned.

Amid the good news, DeVoe sounded a note of caution. Looking ahead to 2009, he predicted that improved monetization of Internet traffic at MySpace would be a bright spot, but that the company would have to contend with some problems.

These include the loss of the popular Super Bowl, which buoyed Fox's ratings this year; the addition of pilot and programming costs erased by the writers' strike; and a worsening economic environment.

Together, he warned, they could lead to an operating income rate that was significantly lower than this year's.Related Links
MySpace Is Mike's Place
Murdoch's Digital Agenda
'Museum' Boosts News Corp. Sales


Source: Portfolio.com: Top 5 | 5 Aug 2008 | 11:30 pm

NewsCorp hit by lower TV ad revenues

Strong film studio results helped News Corp report a 27 per cent jump in fiscal fourth-quarter earnings, but its television division suffered the same advertising slowdown that is afflicting other media companies
Source: FT.com - US homepage | 5 Aug 2008 | 11:23 pm

Error distorts Yahoo vote on Yang

The apparently solid support displayed at Yahoo's annual meeting last week for embattled CEO Jerry Yang evaporated after an unusual admission that the votes of the company's largest shareholder had not been counted
Source: FT.com - US homepage | 5 Aug 2008 | 11:17 pm

News Corp growth rate ‘less robust’ in wake of faltering world economy

Rupert Murdoch, the chief executive of News Corporation, parent company of The Times, said that the media group would see its growth rate decline in the current year in the wake of the faltering global economy.
Source: Latest Business News from Times Online | 5 Aug 2008 | 11:00 pm

Nine passengers on every British Airways jumbo lose their bags

British Airways loses more bags and operates more delayed planes than any other big airline in Europe, a confidential report seen by The Times has found.
Source: Latest Business News from Times Online | 5 Aug 2008 | 11:00 pm

British Airways sees low summer travel numbers

The traditional summer travel boom failed to materialise for British Airways last month as its aircraft flew nearly one quarter empty.
Source: Latest Business News from Times Online | 5 Aug 2008 | 11:00 pm

Threat of recession amid double decline in services and industry

The economy probably ground to a virtual halt last month and may even have sunk into the grip of recession, economists said yesterday after another spate of bleak figures revealed growing frailty across critical sectors.
Source: Latest Business News from Times Online | 5 Aug 2008 | 11:00 pm

NZ Shares: Market up 1pc early after US stocks soar

The New Zealand sharemarket started strongly, after US equities soared on signals from the Federal Reserve that it is in no rush to raise US interest rates and as oil prices tumbled further. Shortly after the market's 10am opening...
Source: New Zealand Herald - Business | 5 Aug 2008 | 10:39 pm

Currency: Kiwi nears year-long low vs greenback

The New Zealand dollar slipped to a 10-1/2-month low against the greenback overnight, while also getting to a four-week high against its Australian counterpart. The kiwi showed little reaction to the decision early today of the...
Source: New Zealand Herald - Business | 5 Aug 2008 | 10:35 pm

Pipeline Maintenance Firm Tries To Consolidate Fragmented Industry

"We're high-end plumbers," volunteered Philip J. Hawk, chief executive of Team.
Source: Investor's Business Daily: BUSINESS | 5 Aug 2008 | 10:31 pm

Trends & Innovations - Tuesday

Frustration with innovation rises
Source: Investor's Business Daily: BUSINESS | 5 Aug 2008 | 10:31 pm

After The Close - Tuesday

FANNIE MAE (FNM) and Freddie Mac (FRE) will get a risk assessment from Morgan Stanley. The Treasury Dept. has hired the investment bank to assess...
Source: Investor's Business Daily: BUSINESS | 5 Aug 2008 | 10:31 pm

Business Briefs - Tuesday

Volume, pricing lift HealthExtras. The pharmacy benefits manager after the close met Q2 EPS views for a 17% rise to 28 cents. Revenue grew 46% to...
Source: Investor's Business Daily: BUSINESS | 5 Aug 2008 | 10:31 pm

In Brief - Tuesday

Henry Schein (HSIC), a provider of medical and dental gear, said Q2 EPS rose 18% to 71 cents, beating views by 3 cents. Revenue grew 19% to $1.64...
Source: Investor's Business Daily: BUSINESS | 5 Aug 2008 | 10:31 pm

Zeffirelli, Designer Starck, Wiley in Harlem, Olympic Ceremony

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 10:24 pm

Pianist Ellis Marsalis Discusses Monk, Music As a Language

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 10:19 pm

Oil traders send prices tumbling

NEW YORK - Oil traders sent crude prices tumbling as low as $US118 a barrel Tuesday on the growing belief that a US economic slowdown and high energy costs are curbing consumer demand for petrol and other petroleum products. Crude...
Source: New Zealand Herald - Business | 5 Aug 2008 | 10:00 pm

Primary sector tipped to save NZ

A surge in agricultural export earnings will lift the New Zealand economy out of the recessionary doldrums over the next two years, according to latest forecasts from the Ministry of Agriculture and Forestry. Revenue from agriculture...
Source: New Zealand Herald - Business | 5 Aug 2008 | 9:30 pm

Wall Street higher as oil prices drop

Wall Street stocks snapped a three-session losing streak as oil prices fell to three month lows and the Federal Reserve kept interest rates on hold for a second straight meeting
Source: FT.com - US homepage | 5 Aug 2008 | 9:22 pm

Musician Felder Says He Sued The Eagles After Band Fired Him

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 9:11 pm

Hoku Scores Another Substantial Supply Pact (HOKU)

Hoku Scientific, Inc. (NASDAQ: HOKU) has just announced that its Hoku Materials subsidiary and Tianwei New Energy (Chengdu) Wafer Co., Ltd. have signed a definitive contract for Hoku's sale and delivery of polysilicon to Tianwei over a ten-year period beginning in early 2010. The company said that $284 million may be payable to Hoku during the ten-year period of this contract, subject to product deliveries and other conditions.
Source: 24/7 Wall St. | 5 Aug 2008 | 9:08 pm

Whole Foods (WFMI) Earnings: Pigs To The Slaughter

Monstrously eccentric CEO and health fanatic John Mackey has finally taken Whole Foods (WFMI) down to a level from which it is unlikely to recover. Shares are off 12% after hours to $20 against a 52-week high $$53.65 Earnings for the last quarter dropped to $33.9 million from $49.1 million in the same period a year ago. WFMI will scramble to keep itself together.
Source: 24/7 Wall St. | 5 Aug 2008 | 9:08 pm

Retailers, Transports Surge as Oil Shock Recedes (Daily ETF Wrap-Up)

Crude's retreat fueled a broad rally that never wavered as the Fed bided its time.

Source: SmartMoney.com | 5 Aug 2008 | 9:03 pm

VIX Index of U.S. Stock Prices Retreats 10.0 % to 21.14

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 9:03 pm

Option Investments' Julian Says Focus Is on Gold, Energy ETFs

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 9:02 pm

Inflation fears persist as Fed holds rates

The Federal Reserve pushed back the horizon for possible rate increases by acknowledging continuing risks to growth, but emphasised that inflation risks were "also of significant concern"
Source: FT.com - US homepage | 5 Aug 2008 | 8:59 pm

Return to Health for Some, Comeuppance for Commodities (Daily ETF Wrap-Up)

ETFs betting against commodities hit a rich vein. Emerging markets submerged.

Source: SmartMoney.com | 5 Aug 2008 | 8:52 pm

Priceline Finally Showing Cracks? (PCLN)

Priceline.com Inc. (NASDAQ: PCLN) has just reported earnings. The online travel bidding service posted $1.55 non-GAAP EPS on $514 million in revenues. First Call had estimates of $1.41 EPS on $495.7 million in revenues. Unfortunately, the earnings today are not the only issue traders are focusing on.
Source: 24/7 Wall St. | 5 Aug 2008 | 8:40 pm

StanChart cautious over Asia

Standard Chartered pledged to carry on expanding in emerging markets even as the banking group acknowledged that economic growth in Asia was likely to slow.
Source: FT.com - US homepage | 5 Aug 2008 | 8:37 pm

Producers scramble to lock in oil prices

Crude oil and natural gas producers buy insurance against further drops in prices as oil hit a fresh three-month low of $118 a barrel
Source: FT.com - US homepage | 5 Aug 2008 | 8:31 pm

Same concerns turning up in financial statements says Securities Commission

The Securities Commission finds the same matters cropping up in its ongoing surveillance of the financial statements of securities markets issuers. The commission said today it was pleased with the overall quality of financial...
Source: New Zealand Herald - Business | 5 Aug 2008 | 8:30 pm

High Yield Can Be a Sign of Trouble for a Stock (The Irritable Investor)

Fat dividends can't make up for the nightmare of plunging share prices.

Source: SmartMoney.com | 5 Aug 2008 | 8:30 pm

General Motors (GM) Backs Wagoner On His Way Out

General Motors Co.'s (GM) board of directors gave a vote of confidence to embattled Chief Executive Rick Wagoner after the automaker surprised Wall Street by announcing a $15.5 billion loss. This praise reminds me of the pat on the back President Bush gave to the Director of FEMA Michael Brown after Hurricane Katrina. "Brownie" did not last long in his job afterwards even though Bush said he did a "heck of a good job" -- an opinion shared by few other people. Wagoner is in a similar situation.
Source: 24/7 Wall St. | 5 Aug 2008 | 8:29 pm

Sony agrees to buy out Bertelsmann

Sony agreed to buy Bertelsmann out of Sony BMG, giving the Japanese electronics group control of the world's second largest record company for an initial $600m while allowing the German media group to claim proceeds of $1.5bn
Source: FT.com - US homepage | 5 Aug 2008 | 8:15 pm

Cisco Earnings Only Part of the Tale (CSCO)

We just got earnings out of Cisco Systems Inc. (NASDAQ: CSCO). Despite the fact that the company beat its estimates, keep in mind that this is an incomplete report until John Chambers makes his comments in the company conference call regarding his outlook and regarding enterprise spending.
Source: 24/7 Wall St. | 5 Aug 2008 | 8:14 pm

Stocks Surge on Fed, Oil

The Dow Jones Industrial Average jumped 332 points after the Fed held rates steady and oil prices fell.

Source: SmartMoney.com | 5 Aug 2008 | 8:11 pm

U.S. Car Makers Finally Turn a Corner (Common Sense)

Detroit, finally facing reality, plans to (gasp!) make vehicles drivers want to buy.

Source: SmartMoney.com | 5 Aug 2008 | 6:32 pm

The Fed Sandwich

Oil stuck above $110 a barrel? Grain prices setting records? Iron ore doubling overnight? Never mind. The Federal Reserve held a key interest rate unchanged today and signaled that a tepid economy would likely keep board members from hiking rates anytime soon.

The collapsing housing market and tight lending conditions in financial markets have been drags on growth for more than a year now, but alarmingly steep gains in oil prices had begun to shift some Fed members' concern to inflation.

As energy prices ebbed over the last two weeks—it fell below $120 a barrel today in New York—the Fed has been forced back on the fence between inflation and growth.

It's not a particularly comfortable position. Evidence is growing that the credit crunch is hitting consumers harder. Credit card companies say that the number of people unable to make their payments is on the rise.

Still, the Fed's decision to keep its federal funds rate steady at 2 percent sparked a celebration on Wall Street. Traders bid up stocks frantically, launching the Dow Jones Industrial average on a 331-point gain. It closed at 11,615, up 2.94 percent. The broader Standard and Poor's 500 index also gained almost 3 percent, as did the tech-heavy Nasdaq Composite Index.

Traders' enthusiasm was encouraged by the Federal Open Market Committee members' statement, which said that the committee's "substantial easing of monetary policy"—it has cut the rate by 3.25 percentage points since September—should help promote growth.

While the Fed also said that inflation was of "significant concern," it dropped language from its previous statement, in June, which said that risks to economic growth had been lowered.

Voting against the other members for the fifth time this year was Dallas Federal Reserve Bank President Richard Fisher who wanted to raise rates. He's unlikely to get his way soon, judging by the markets. Interest rate futures lowered their expectations of a Fed interest rate hike before 2009—coincidentally after the presidential election.

"In the short-term, it's hard to envision this scenario (of a rate hike)," Joe Davis, chief economist at Vanguard, told Reuters. "For that to happen, you would need to see things improving significantly."

The Fed started the current cycle of cutting rates last September, when it dropped them a larger-than-expected 50 basis points, or half a percentage point, in response to the credit crunch.

Including that cut, the bank has lowered its federal funds target rate by 3.25 percentage points. The Fed has kept its benchmark rate unchanged at 2 percent since April as rising energy prices have ignited concerns over mounting inflation.

In the weeks leading up to today's meeting, those concerns led two regional Federal Reserve bank presidents called for tighter monetary policy—higher rates—to be enacted sooner rather than later.

But with economic growth tepid and banks still hesitant to extend credit, most analysts don't believe the Fed will be in a position to raise rates until 2009. In fact, on the first anniversary of the credit crunch last week, the Fed signaled it was still concerned about liquidity when it added new borrowing facilities for banks.

Meanwhile, policymakers are expected to get some support from falling oil prices, which will help check inflation in the coming months.

Before today's meeting, the Fed swore in new voting board member Elizabeth Duke who will fill one of three empty seats on the F.O.M.C.Related Links
Will 2 Percent Be the Floor?
Fed Tries to Loosen Up
Inflation Expectations: Main St. Versus Wall St.


Source: Portfolio.com: Top 5 | 5 Aug 2008 | 6:30 pm

Too few geriatricians for an aging U.S.

The number of prescriptions and doctors elderly Americans have to keep track of is daunting, which is where geriatric specialists step in. But just as millions head into old age, the number of experts is in decline. Caitlan Carroll reports.
Source: Marketplace | 5 Aug 2008 | 6:25 pm

MLB investigating bonus scandal

Major League Baseball and the FBI are looking into whether some talent scouts have been skimming off the top of the signing bonuses given to young players from the Dominican Republic. Ashley Milne-Tyte reports.
Source: Marketplace | 5 Aug 2008 | 6:25 pm

Free trade improves human rights

A free trade agreement with Colombia remains stalled in Congress over human rights concerns, but commentator Susan Aaronson says expanding trade may be the best way to help Colombia make progress on rights.
Source: Marketplace | 5 Aug 2008 | 6:25 pm

Marketers sneak into pop songs

Advertisers are inviting modern artists to reinvent some of their older slogans. Host Kai Ryssdal asks Current TV's Douglas Caballero how product jingles are making their way up the Top 40 charts.
Source: Marketplace | 5 Aug 2008 | 6:25 pm

Businesses feel credit card squeeze

With more Americans paying their credit card bills late or not at all, issuers are clamping down on credit lines. But that's hurting small businesses, which rely on credit to pay their bills. Mitchell Hartman reports.
Source: Marketplace | 5 Aug 2008 | 6:25 pm

Inflation takes off in Asia

Prices are shooting up in many parts of Asia, with no sign of slowing. A number of factors may make it difficult for governments to rein in inflation. Lisa Chow reports.
Source: Marketplace | 5 Aug 2008 | 6:25 pm

Candidates shift positions on energy

John McCain and Barack Obama have spent the past week talking up their energy plans. But the toll on Americans' pocketbooks from the high costs of fuel have forced both candidates to change their stances on a number of policies. Steve Henn reports.
Source: Marketplace | 5 Aug 2008 | 6:24 pm

Lower demand helps in oil-price drop

A barrel of oil costs about 20% less today than three weeks ago. Host Kai Ryssdal talks with energy analyst Peter Beutel about why prices are falling, and if even lower prices could be ahead.
Source: Marketplace | 5 Aug 2008 | 6:24 pm

Kotok Says Crisis of U.S. Financial Markets Is Historic

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 6:23 pm

3 Charity Sites That Let Donors Call the Shots (Deal of the Day)

These charities let donors call the shots when it comes to doling out contributions.

Source: SmartMoney.com | 5 Aug 2008 | 6:01 pm

3 Brand-New Tax Changes You Need to Know About (The Tax Guy)

New legislation has changes that will affect many homeowners.

Source: SmartMoney.com | 5 Aug 2008 | 6:00 pm

8 Stocks Fit for Contrarian Investors (Stock Screen)

Our contrarian search found eight stocks, including an implant maker's, due for a lift.

Source: SmartMoney.com | 5 Aug 2008 | 5:19 pm

Varvares Says Fed to Keep Rates at 2% Until Early 2009

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 4:32 pm

Apple Rated `Buy' at UBS on `Competitive Advantage'

Source: Bloomberg - All Podcasts | 5 Aug 2008 | 4:26 pm

Rollin' Dolan

The economy is in the toilet, the credit markets are frozen, and the consumer is pinched, but don't tell that to James Dolan. His company, Cablevision, is on a roll.

The New York area cable company, which also owns assets including Madison Square Garden, the New York Knicks, and the recently purchased Long Island-based Newsday Media Group, announced plans to boost shareholder value by establishing a dividend, buying back stock, or spinning off business units.

No matter that chief executive Dolan already said as much during a quarterly conference call late last week. Today's press release made it official, and Cablevision's shares are up more than 6 percent.

The news comes on the heels of a favorable court ruling yesterday that could let Cablevision customers use a remote digital video recording system to tape television shows without using a set-top box. Such a recording device would dramatically increase the number of households that could fast-forward through television commercials.

The Motion Picture Association argued that the remote system amounted to unauthorized re-broadcasting of its shows. It won an earlier legal battle, which was overturned yesterday by the U.S. District Court in Manhattan.

During the earnings call on Friday, after Cablevision reported better than expected second-quarter profit, Dolan said its stock was undervalued. Dolan, whose family controls Cablevision as its largest shareholder, declined to provide details but said the company would explore ways to boost shareholder value.

"We have a strong desire to close the value gap between our operating performance and the market value of our debt and stock," Dolan said. "We recognize that current capital market conditions may contribute significantly to this value gap. We are considering and actively exploring alternatives that may close this gap and want to assure our investors that we will be open to listening to their thoughts."

Today's announcement doesn't give any more information, but merely talking about it again is pleasing shareholders. Cablevision shares rose nearly 5 percent last Friday, and are soaring again today.

One option might be to spin its valuable cable franchise off or sell its cable networks, which include IFC and AMC. The latter is currently basking in the success of its original program Mad Men.

But certain spinoffs might crimp Dolan's style, as Cablevision has used its lucrative cable business to fund unrelated acquisitions, a move that some analysts have questioned. In July, it closed its $650 million purchase of the struggling newspaper publisher Newsday.

Last year, Dolan offered to take the company private at $36.26 per share, but its shareholders rejected the offer. Today its shares trade for $27.65.


Related Links
Disconnecting a Cable Buyout
And There You Have It: Cablevision Buys 'Newsday'
The Time Warner Cable Control Premium: $0


Source: Portfolio.com: Top 5 | 5 Aug 2008 | 2:30 pm

Why Are Car Bumpers So Ineffective? (Autos)

They may look nice, but do they do the job? Why bumpers are more delicate than ever.

Source: SmartMoney.com | 5 Aug 2008 | 1:56 pm

Swift Energy Is a Gulf Coast Beauty (Today From Barron's)

Don't let the recent pullback in oil distract you from the bright prospects for Swift Energy.

Source: SmartMoney.com | 5 Aug 2008 | 11:47 am

Syron's Song

It'll come as no surprise that allegations have surfaced that Dick Syron, the now-embattled boss of Freddie Mac, ignored warnings from risk managers and underlings to tighten up the mortgage giant's balance sheet and cut risk as far back as 2004.

According to this mornings New York Times, Syron's defense is that—as he collected $38 million in compensation since 2003—he was under pressure from competing interests to keep the American homeownership juggernaut rolling. Now that the housing crisis has rolled over his company and a good portion of U.S. homeowners, that protest rings hollow.

The executives around Freddie (and its dysfunctional sister, Fannie Mae) says Syron turned a blind eye to the company's deteriorating lending standards and kept snapping up portfolios of risky loans.

What is shocking is that both Syron and his counterpart at Fannie, Daniel Mudd, say they had it all covered and that only a precipitous decline in the U.S. housing market could've hurt them.

What exactly, one might ask, did they expect after a cheap-money housing rally that lasted for the past decade? A soft landing. They should at least be honest that they knew they'd be bailed out and shot the moon.

Most appalling, however, is Syron's self-interested take on a collapse that's crippled the housing market. "If I had better foresight, maybe I could have improved things a little bit. But, frankly, if I had perfect foresight, I would never have taken this job in the first place."

Hmmm. Maybe, with perfect hindsight, shareholders (or maybe even taxpayers) will sue to get some of that $38 million back.

Related Links
Hoping for a Fed Encore
Memo to the Next President
Wait. Weren't Treasuries Supposed to Be Really Safe?


Source: Portfolio.com: Top 5 | 5 Aug 2008 | 11:30 am