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US stocks dip as investors pause for breathUS stocks dipped slightly as a day slow on news, company earnings and macro economic data gave investors time to pause for breath after strong market gains last weekSource: FT.com - US homepage | 11 Aug 2008 | 2:51 pm Crude rises on Georgia fightingOil prices rise on fears that conflict between Russian and Georgia could disrupt energy supplies in the region.Source: BBC News | Business | World Edition | 11 Aug 2008 | 2:47 pm RIM (RIMM) Picks Up Gains Big Market Share In US
Research-In-Motion (RIMM), maker of the Blackberry, was the significant winner in the second quarter. According to Reuters, "BlackBerry cornered 10 percent of U.S. cell phone sales in the second quarter in a market that grew more than 5 percent despite economic concerns, Strategy Analytics said on Monday." The figures leaves open the question of where Apple (AAPL) will pick up market share for its iPhone, which seems to be selling well in a industry which is only expanding at a crawl. It certainly makes it likely that Nokia (NOK), LG, and Motorola are likely to lose part of their smart-phone business down the road. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Aug 2008 | 2:45 pm London Markets: BP, Wolseley, Next, advance in higher LondonOil producers and miners broadly advance in London as crude futures move higher and renewed deal speculation helps support the mining sector.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:37 pm Apple CEO Jobs says iPhone's App Store seeing big sales: reportThe online App Store that Apple uses to sell software for its popular iPhone has reportedly generated an average of $1 million in sales per day since its launch a month ago.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:36 pm Stocks trade mixed as oil prices fluctuateNEW YORK -- Stocks traded mixed today as investors paused following last week's sharp gains and as oil prices fluctuated on concerns over fighting between Russia and Georgia.Source: L.A. Times - Business | 11 Aug 2008 | 2:31 pm Europe Markets: European shares higher again as euro hovers around $1.50European shares rise again on Monday, with auto makers and aerospace companies getting a lift as the euro hovers around the $1.50 mark.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:25 pm Market Snapshot: U.S. stock indexes mixed as oil resumes riseU.S. stock indexes trade mixed, with sellers stepping in after Friday’s rally as investors track a mild rise in oil futures.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:24 pm Oil edges up, Georgia conflict disrupts shipmentsLONDON (Reuters) - Oil traded near $115 on Monday, off early highs as concerns about global demand outweighed supply disruption in the Caspian region.Source: Reuters: Business News | 11 Aug 2008 | 2:23 pm Dollar falls from recent highThe dollar lost ground Monday versus the euro, after hitting a six-month high on Friday against the 15-nation currency. But it's still hovering near its highs.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 2:23 pm Saakashvili says Moscow wants to oust himPresident Mikheil Saakashvili accused the Russian government of invading the undisputed territory of Georgia and of seeking to depose his government as Vladimir Putin, the Russian prime minister, blasted the US for airlifting Georgian troops home from IraqSource: FT.com - US homepage | 11 Aug 2008 | 2:21 pm Toyota could downsize U.S. temporary work force: ecTRAVERSE CITY, Michigan (Reuters) - Toyota Motor Corp could cut temporary U.S. manufacturing jobs if the downturn in the U.S. auto industry deepened, the automaker's U.S. manufacturing chief said on Monday.Source: Reuters: Business News | 11 Aug 2008 | 2:20 pm Airline Stocks: Airlines checked as oil markets weigh Russia-Georgia conflictSome trepidation in the oil markets over the military conflict between Russia and Georgia keep airline stocks in check.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:20 pm The best way to save for collegeSince their introduction in 1996, the now ubiquitous state-sponsored 529 college savings plans have been lauded again and again as one of the best tax breaks since the IRA.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 2:18 pm Tech Stocks: Amazon.com, chips lead sector rallyAmazon.com and chip-making companies lead a technology sector rally, helping reverse early morning losses.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:18 pm Bargain Shoppers Driving TJX In More Ways Than One (TJX)
Home furnishings, knick-knacks, and other items can be put off. But unless you are a homeless person or are into wearing clothes with holes and stains, you do at some point have to buy new clothes whether you like to or not. When times are tough, the masses don't go to Nordstrom's, Saks, or Neiman's to find their bargains. Sure, they may go for the twice per year sales, but the trade down is where they are heading to. TJX Companies ownership of T.J.Maxx, Marshall's, and more are driving their strong numbers. These stores carry many close-outs and are able to discount to peers over a zero-service and lower presentation merchandise market. You can find many brands such as Nike, Polo, and many many more at the stores for a fraction of what mall-based retailers sell these for. With this year's earnings expected to be $2.27 that gives an expected P/E ratio of 16.3, yet the eighteen month-out number of $2.49 EPS gives a forward P/E of under 15 for investors looking farther out. It seems that investors are still looking at TJ Companies as a bargain just like many shoppers are for their clothes.
Jon C. Ogg Source: 24/7 Wall St. | 11 Aug 2008 | 2:17 pm Biotech Stocks: Drug stocks slip, Enzon rises on divestiture newsDrug stocks move lower, but shares of Enzon climb on news that it is considering selling off part or all of its specialty pharmaceuticals business.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:15 pm Retail Stocks: Retail shares up ahead of quarterly reportsRetail shares erase earlier losses as investors await the beginning of second-quarter earnings reports from retailers including Wal-Mart Stores Inc. and Macy’s Inc.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:15 pm 24/7 Wall St. Most Overpaid CEO Of The Day: Basin Water (BWTR) CEO Michael Stark
Basin Water (BWTR) shares are off over 50% to $1.78 on heavy volume. Basin Water said that the Audit Committee of its Board of Directors is conducting a review of the Company’s accounting for certain specific transactions, and that the Audit Committee has retained independent legal counsel and accountants to assist in the review. The Company has delayed the filing of its Form 10-Q pending the completion of the Audit Committee's review. CEO Michael Stark made $325,842 in salary last year and $80,000 in bonuses. Will he do as well this year? Shareholder in Basin Water should hope not. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Aug 2008 | 2:14 pm Toyota could downsize U.S. temporary work force: ec (Reuters)
Source: Yahoo! News: Business | 11 Aug 2008 | 2:07 pm Stocks slip after rallyStocks weakened Monday morning, as investors eyed higher oil prices and a weaker dollar, opting to step back after last week's big rally.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 2:06 pm Water companies plan price risesWater companies in England and Wales submit their proposed five-year price plans from 2010 to the regulator Ofwat for approval.Source: BBC News | Business | World Edition | 11 Aug 2008 | 2:03 pm Metals Stocks: Gold futures edge lower as traders eye dollar, oilGold futures trade marginally lower, extending last week’s losses, as traders eye developments in the energy and currency markets.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:02 pm Coal is Hot, Ethanol is Not (PEIX, NRP)
Corn prices rose 67% y-o-y, leading to a gross margin of just 0.2%, compared with 9.8% a year ago. Pacific had to raise $32.4 million through sales of stock and warrants even to reach this level of failure. The company's CEO and President said that despite a "challenging commodity environment" in the quarter, Pacific "continued to increase our sales." Selling more gallons at a loss for each gallon only adds up to a bigger loss. Without the federal subsidy of $0.51/gallon, Pacific would have lost another $64 million. The stock is down more than 10% in early trading. On the other side of the energy coin, coal-producer Natural Resources Partners LP (NYSE:NRP) reported record earnings, production, and revenues. EPS increased to $0.47/common unit from $0.28/unit for the same period a year ago. Production topped 16 million tons, and total revenues jumped to more than $75 million, up 33% from the same period a year ago and more than 15% sequentially. Analysts expecte EPS of $0.42 and revenues of $69 million. Natural Resources also raised its guidance for net income per unit for the rest of 2008 by about 20%. Total revenue expectations are up by about 10%. In the second quarter, metallurgical coal prices tripled and steam coal prices doubled. The company's president and CEO summarized the effects nicely: "Because our coal royalties are based on a percentage of the sales price received by our lessees, we have experienced all the positives of the current pricing market without having to bear the burdens of escalating mining costs. As a result, ... the vast majority of our revenue is leveraged to sales price." That's a sweet deal if you can get it. Natural Resources stock is up nearly 5% in early trading.
Paul Ausick Source: 24/7 Wall St. | 11 Aug 2008 | 2:01 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 11 Aug 2008 | 2:01 pm American Independence Stock Fund Recognized in Wall Street Journal(R) Rankings of Category KingsA Leader in Its Class NEW YORK, Aug. 11 /PRNewswire/ -- American Independence Financial Services, LLC, a mutual fund and financial services company, announced todaySource: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:01 pm BeaconEquity.com Issues Trade Alerts on Communication Equipment Stocks: APKT, NOK, GLW, QCOM, BRCM, ERICDALLAS, Aug. 11 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm Robert Long Joins The PrivateBank - Georgia as Commercial Banking Associate Managing DirectorATLANTA, Aug. 11 /PRNewswire-FirstCall/ -- Robert G. Long has joined The PrivateBank - Georgia as Associate Managing Director in the Commercial Banking group based in theSource: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm The Regus Group Opens Its First Business Center in Riverside, CaliforniaRegus' newest location offers local businesses of all sizes move-in ready, furnished offices in the prestigious Turner Riverwalk development RIVERSIDE, Calif., Aug. 11...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm SpongeTech(R) Delivery Systems, Inc. to Air New TV Commercials for Pet Sponge on National Cable StationsSpongeTech(R)'s Pet Sponge Commercials to Start Airing Today August 11, 2008, on Cable TV NEW YORK, Aug. 11 /PRNewswire/ -- SpongeTech(R) Delivery Systems, Inc. (OTC...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm Image Exchange Volume Hits All-Time High in JulySVPCO Image Payments Network Reports 100% Growth Compared To Year Ago NEW YORK, Aug. 11 /PRNewswire/ -- SVPCO, the paper and electronic check exchange business of TheSource: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm SpiceJet Signs Agreements for $100 MillionFunding infusion with WL Ross and others NEW DELHI, India and NEW YORK, Aug. 11 /PRNewswire/ -- SpiceJet Limited ("SpiceJet" or "Company") and WL...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm Very Poor Countries on the Wrong Side of a Growing Logistical DivideSupply Chain Performance, Geography, Governance Weaknesses, Civil Wars, and Battles for Resources Are All Factors NEW YORK, Aug. 11 /PRNewswire/ -- The gap between...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 2:00 pm Oil falls despite Russia-Georgia conflictOil prices fell Monday as traders bet on continued weakness in the market despite concerns that a widening conflict between Russia and Georgia over the breakaway province of South Ossetia...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 1:54 pm UPS dismisses TNT bid interest (Reuters)
Source: Yahoo! News: Business | 11 Aug 2008 | 1:51 pm UPS dismisses TNT bid interestBEIJING/AMSTERDAM (Reuters) - A senior executive of top global logistics firm United Parcel Service on Monday dismissed talk of a $15 billion takeover bid for Dutch rival TNTSource: Reuters: Business News | 11 Aug 2008 | 1:51 pm A more friendly 401(k)Read full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 1:48 pm Wall St opens lower on geopolitical caution (Reuters)
Source: Yahoo! News: Business | 11 Aug 2008 | 1:46 pm Wall St opens lower on geopolitical cautionNEW YORK (Reuters) - Stocks opened lower on Monday as geopolitical concerns fueled caution and oil prices rose, sparking a drop in shares.Source: Reuters: Business News | 11 Aug 2008 | 1:46 pm Stocks Slip After RallyThe major indexes took a step back after Friday's rally as oil prices turned flat. World markets were mixed.Source: SmartMoney.com | 11 Aug 2008 | 1:45 pm Goldman, Morgan Stanley among Dubai Merc investorsGoldman Sachs Group Inc., Morgan Stanley and four energy-related companies are taking minority stakes in Dubai Mercantile Exchange Ltd., adding clout to the fledgling exchange as it seeks...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Aug 2008 | 1:45 pm Factory inflation triggers Chinese stocks slideChinese shares dived to a 19-month low today as evidence emerged that inflationary pressures in the Olympic nation's fast-growing, manufacturing-based economy increased in the past month.Source: Latest Business News from Times Online | 11 Aug 2008 | 1:42 pm CD sales tumble as Apple's iTunes dominatesApple's online music store, iTunes, helped boost songwriters' royalties from music downloads by more than 40pc in the first half of the year, according to MCPS-PRS Alliance.Source: Telegraph Business | 11 Aug 2008 | 1:40 pm Russian shares rebound after Georgia jittersRussian stock markets rebounded in the afternoon after fears over the conflict in Georgia hit shares in early trading.Source: Telegraph Business | 11 Aug 2008 | 1:40 pm Who Killed Bear Stearns?And the plot thickens.While the debate over exactly who is responsible for Bear Stearns' swift demise continues, it's becoming clear that certain traders made a killing during that fateful week in March. On March 11, the day the Federal Reserve announced plans to extend its lending facilities to investment banks later in the month, someone bet $1.7 million that shares of Bear Stearns would lose half their value in just a week. According to trading data examined by Bloomberg, a single trader or a group of traders took out 5.7 million put options with a strike price of $30 expiring in one week. At the time, Bear was trading for $62.97. Another, smaller trade bet that the stock would fall to $25 per share in the same time frame. Options specialists call the trade preposterous. "It's not even on the page of rational behavior, unless you know something,'' Thomas Haugh, general partner of the options trading firm PTI Securities & Futures, told Bloomberg. Ah yes, there's the rub. Did this trader know something that the rest of the world did not? Or did these traders place the bet as part of a master plan to drive Bear Stearns into the ground? As the story of Bear Stearns' unraveling unfolded in the days following the mysteriously bearish trades were made, more options traded with strike prices as low as $5, even when the stock was still in the $50's. Such a trade is called a "bankruptcy put," meaning the trader is betting the company will go bankrupt. It's hard to imagine just what kind of insider information these traders might have had at the time. Did they know there would be a run on the bank that would force it into a fire sale? Or did their bearish bets help to cause it? Finding the precise line between cause and effect may not be easy for regulators. The Securities and Exchange Commission, which declined to comment on the Bloomberg story, is investigating the trades placed during the days before it agreed to be sold to J.P. Morgan for just $2 a share. Outraged shareholders eventually pushed J.P. Morgan to offer $10 per share a week later. Other financial stocks, such as Lehman Brothers, Fannie Mae, and Freddie Mac, have experienced significant nosedives since the Bear debacle, which prompted the S.E.C. to put limits on short selling practices for certain stocks. Those temporary rules expire on Wednesday, and it's not clear to what extent they helped to stabilize the market. Related Links The New Committee to Save the World Bad News for Bear Shareholders is Good News for the Markets J.P. Morgan Buys Bear Stearns Source: Portfolio.com: Top 5 | 11 Aug 2008 | 1:30 pm Analyst: 3 million iPhones sold in first monthTalk about your summer scorchers.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 1:24 pm Delta, Northwest pilots voting on dealRead full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 1:15 pm Small Caps Unearthed by a Top Japanese Fund (Today From Barron's)Tempting small caps unearthed by a top Japanese fund.Source: SmartMoney.com | 11 Aug 2008 | 1:14 pm Wall Street set for lift from commodity pricesUS stocks were set for a modestly higher start on Monday, as a bump in commodity prices helped energy and materials stocks to advance.Oil prices rose $0.88 to $116.08 a barrel in early trading on concerns...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 12:57 pm Waste Management raises bid for Republic (Reuters)
Source: Yahoo! News: Business | 11 Aug 2008 | 12:54 pm Investors in Moscow Struggle With Uncertainty of WarMarkets fell sharply for a time in Moscow on Monday before recovering as investors grappled with concerns that the conflict between Russia and Georgia might endanger the economy.Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 12:54 pm Waste Management raises bid for RepublicNEW YORK (Reuters) - Waste Management Inc, the largest U.S. trash hauler, raised its unsolicited takeover bid for rival Republic Services Inc by about 9 percent to $6.7 billion on Monday to try to thwart Republic's agreement to acquire Allied Waste Industries Inc.Source: Reuters: Business News | 11 Aug 2008 | 12:54 pm Can Small Businesses Escape From The Auction-Rate Securities Mess?
In most cases, large businesses will have to wait several months for their auction-rates to be bought back. Individual investors will get relief very quickly. In many cases, people holding the paper cannot put children through college or cover the costs of balloon mortgages. The position of small and mid-sized businesses is a bit more murky. Citigroup has said it will buy auction-rates from smaller corporations sometime over the next three months. The policies of UBS and Merrill are a bit less clear. Perhaps the biggest pain for small business from the auction-rate problem is that other large banks like Wachovia (WB) and Morgan Stanley (MS) have not settled charges that they used misleading marketing to sell the bonds. In these cases, access to the capital is still a problem. The money tied up in auction-rates has hurt capital spending for many companies. In other cases, firms that have needed to offset losses with cash from their balance sheets have been unable to do so. Small businesses with auction-rate securities need to stake a claims to their capital while the government's involvement is still fresh. By the end of the year, the regulatory spotlight may have moved somewhere else. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Aug 2008 | 12:29 pm Chinas Trade Surplus at an 8-Month HighChinas trade surplus swelled in July to its highest level in eight months as its trade gaps with the United States and Europe grew despite concern about weaker global demand.Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 12:28 pm Families pay 1,400 more a year for their food than 12 months agoFamilies pay 1,400 more a year for their food than 12 months agoSource: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 12:20 pm Families pay £1,400 more a year for their food than 12 months agoFamilies pay £1,400 more a year for their food than 12 months agoSource: Telegraph Business | 11 Aug 2008 | 12:20 pm 3 Retirement Rip-Offs (The New Retirement)Seniors are popular targets of bad financial schemes. Here are three common pitfalls.Source: SmartMoney.com | 11 Aug 2008 | 12:18 pm The dollars and cents of the OlympicsSource: Business and financial news - CNNMoney.com | 11 Aug 2008 | 12:12 pm Investors buy 20% of Dubai exchangeThe Dubai Mercantile Exchange on Monday moved to rouse interest in its crude-oil futures contracts by selling an equity stake of up to 20 per cent to a consortium of financial investors and energy traders...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 12:12 pm JDA & i2: Supply Chain Consolidation Continues (JDAS, ITWO)
The two companies combined should have roughly $635 million in trailing 12-month revenues, with about $300 million in recurring maintenance and subscription service revenues. The companies believe they will save $20 million in annualized costs. This merger is subject to i2 shareholder approval. Some holders will agree to this, but with a $10.01 to $18.80 trading range over the last 52-weeks, there could be some holders who argue this undervalues the company. Either way, the consolidation among supply chain software and logistics providers continues to occur.
Jon C. Ogg Source: 24/7 Wall St. | 11 Aug 2008 | 12:08 pm Glimmer of hope as manufacturers' costs fallThe worst of the producer price inflation spike may now be over, economists declared after the cost of raw materials for manufacturers dropped for the first time in 10 months.Source: Telegraph Business | 11 Aug 2008 | 12:00 pm Glimmer of hope as manufacturers' costs fallThe worst of the producer price inflation spike may now be over, economists declared after the cost of raw materials for manufacturers dropped for the first time in 10 months.Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 12:00 pm FSA bans another mortgage brokerAnother mortgage broker has been banned, and fined £100,000, by the Financial Services Authority.Source: BBC News | Business | World Edition | 11 Aug 2008 | 11:59 am The Govenment Helps Small Business, But A Very Little
A representative from the Small Business Administration said "Effective Aug. 1, the new standard allows small businesses with a net worth of $8.5 million or less and a net income of $3 million or less to qualify for the program." The current guidelines are a tangible net worth of $7.5 million or less and a net income of $2.5 million or less. In other words, from a practical standpoint, corporations outside the very smallest companies will not have access to loans made available by the SBA. The agency indicated that "the SBA is conducting a comprehensive review of all of its small business size standards over a two-year period." By the time the SBA acts on expanding the pool of companies to which it will lend it may be very late in the current economic downturn. It is a clear indication that the government is not willing to grant any "emergency" measures to help smaller businesses along the lines of the aid it gave to consumers through tax rebates. It is a bit like fiddling while Rome burns Douglas A. McIntyre Source: 24/7 Wall St. | 11 Aug 2008 | 11:55 am Fiver-only cash machines to hit high streetA cash machine that dispenses only £5 notes will help shoppers manage small budgets as household spending tightens, according to its operator Bank Machine.Source: Telegraph Business | 11 Aug 2008 | 11:50 am Fiver-only cash machines to hit high streetA cash machine that dispenses only 5 notes will help shoppers manage small budgets as household spending tightens, according to its operator Bank Machine.Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 11:50 am Employers boost 401(k)s to meet workers' demand (AP)AP - Corporate America may have turned its back on traditional pensions but it appears to be embracing 401(k)s more than ever.Source: Yahoo! News: Business | 11 Aug 2008 | 11:38 am The Money-Go-RoundThe big-money ways of private equity and hedge funds once produced shock and awe. But then the credit crunch took hold and the headline deals got squashed.Yet the funds are still sitting on huge piles of cash, and, judging from two reports today, the firms still have the capacity to astound. Take pay. Much was made about the half-billion-dollar paydays for private equity titans like Steve Schwarzman of Blackstone Group and even more for top hedge fund mangers. But how about $300 million for someone a couple of rungs down on the food chain? Peter Lattman of the Wall Street Journal reports that Fortress Investment Group, which manages both private equity and hedge funds, has granted $300 million in shares to one of its traders, Adam Levinson, who is just 38. Levinson, whose annual income Trader Monthly estimated a year ago was between $75 million and $100 million, joined Fortress in 2002 from Goldman Sachs. The package shows that even amid a slowdown, firms are still paying out huge sums to star traders and dealmakers. Are they worth it? Fortress is publicly traded, and, late last week, a Citigroup analyst criticized the share grant as diluting existing shares. "In our view, this may imply a lack of confidence by this senior employee related to the funds where profit sharing was given up," wrote the analyst, Prashant Bhatia. "We can't rule out additional dilutive share grants to other senior employees down the road." In another sign that as much things change, the more they stay the same, private equity firms are increasing their exposure to deal debt, buying leveraged loans at a discount from banks. Henny Sender of the Financial Times reports that the Royal Bank of Scotland is selling nearly $8 billion in buyout loans to the Apollo Group, the Blackstone Group's GSO Capital, and TPG. Apollo and GSO have also bought $5 billion of debt from Royal Bank, Credit Suisse, and Deutsche Bank, which together put up the financing for the buyout of the radio-station chain Clear Channel Communications, the paper reports. In April, Citigroup was reported to have begun selling as much as $12 billion in deal debt. The banks, struggling to improve their balance sheets, are eager to get the debt off their books. As Sender points out, they are willing to do so on attractive terms—lending at 80 cents to the dollar in many cases. Beyond the discount, the advantage to the firms is that they understand the underlying business better than other investors. But is this really the time to be doubling down? Related Links Trading Places Let the Hedge Fund Lawsuits Begin Don't Bank on Loan Deals Source: Portfolio.com: Top 5 | 11 Aug 2008 | 11:30 am Jobs: 60M iPhone apps downloadedSource: Business and financial news - CNNMoney.com | 11 Aug 2008 | 11:24 am Water companies pushes for price increasesThe UK's leading water companies on Monday pressed the industry regulator for price increases to fund billions of pounds of investment in their ageing networks.United Utilities, a water provider in north-west...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 11:18 am YouGov issues profit warning after failed takeover attemptYouGov, the market research group, today warned that full-year profits will fall short of expectations after taking a one-off £1.2 million hit from a failed takeover.Source: Latest Business News from Times Online | 11 Aug 2008 | 11:13 am OPEC's Record Earnings Undercut Recovery
According to the FT, "Opec nations earned as much in the first half of this year as they did in the whole of 2007." While the news is good for OPEC, that may only be true for a short time. While oil prices have come down, they are still well above where they were a year-and-a-half ago. While $3.50 gas may seem attractive compared to $4 gas, the distinction is not terribly meaningful for the US, EU, China, or India. It still sucks productivity out of any business which uses oil and gas. It still pushes inflation on the consumer. Inflation in China hit 10.1% last month. Oil was a large component of that. The inflation will be exported through increased prices of goods. That will combine with commodities costs and tight credit to drive both economic slowing and high prices. The economy is already on thin ice. It cannot take more of a load. OPEC may be making record money now, but it also may be helping to push the global economy into one of its darkest periods in decades. At that point, it can watch its earnings plummet. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Aug 2008 | 11:12 am Top Pre-Market Analyst Upgrades (BECN, BRNC, CIEN, LLY, ENER, FPL, Q, VRSN)These are not all of the analyst upgrades or positive calls, but these are some of the calls we are seeing with a possible impact on shares early Monday morning:
Jon C. Ogg Source: 24/7 Wall St. | 11 Aug 2008 | 11:12 am Top Pre-Market Analyst Downgrades (AEP, CLNE, HTZ, IHG, QLGC, SPWR, SYMM, VAR)These are not all of the analyst downgrades or negative calls, but these are some of the calls we are seeing with a possible impact on shares early Monday morning:
Jon C. Ogg Source: 24/7 Wall St. | 11 Aug 2008 | 11:09 am Conflict deters Russia investorsRussian stocks tumble and the rouble weakens as the military conflict between Russia and Georgia hits foreign investors.Source: BBC News | Business | World Edition | 11 Aug 2008 | 11:06 am China shares fall to 19-month lowRead full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 11:04 am Europe lifted by banks and carmakersBid speculation lifted European equities on Monday, while banks were helped by Swiss group UBS agreeing to buy back debt securities whose value crumbled during the credit crunch.UBS announced after European...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 11:00 am Oil rebounds as war in Georgia continuesOil prices staged a rebound on Monday amid mounting geopolitical tensions following a massive escalation in violence in the conflict between Russia and Georgia over the weekend. Nymex September West...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Aug 2008 | 10:52 am RIM hits 10 percent U.S. market share recordNEW YORK (Reuters) - For the first time Research In Motion Ltd's BlackBerry cornered 10 percent of U.S. cell phone sales in the second quarter in a market that grew more than 5 percent despite economic concerns, Strategy Analytics said on Monday.Source: Reuters: Business News | 11 Aug 2008 | 10:51 am Costs fall for UK manufacturersUK manufacturers see an unexpected drop in costs in July on the back of falling oil prices, official data shows.Source: BBC News | Business | World Edition | 11 Aug 2008 | 10:50 am Southern Cross sales rise on fee increaseSouthern Cross, the troubled care home group, today reported a 18 per cent rise in revenue after raising the weekly fees it charges to its elderly patients.Source: Latest Business News from Times Online | 11 Aug 2008 | 10:40 am Chinese market hits 20-month lowThe looming threat of inflation and a post-Olympic hangover sent China's benchmark stock exchange to a 20-month low today, making Shanghai the world's worst performing index this year.Source: Telegraph Business | 11 Aug 2008 | 10:35 am Evacuation halts Heathrow flightsFlights are cancelled and delayed at Heathrow Airport when the air traffic control tower is evacuated and airspace closed temporarily.Source: BBC News | Business | World Edition | 11 Aug 2008 | 10:33 am FTSE 100 rises on low volumesWith many in the City off on holiday, the FTSE 100 index of leading shares drifted up 35 points to 5523.7 in early trading on low volumes. Financial and miners perked up, except for, Eurasian Natural Resources. ENRC was the biggest faller in the blue chip index – down 5pc to £10.64 – after Kazakhmys raised its stake above 25pcSource: Telegraph Business | 11 Aug 2008 | 10:30 am Hopes of imminent Zimbabwe deal recedeZimbabwe's rival political leaders, Robert Mugabe and Morgan Tsvangirai, were locked in a second day of tough negotiations, as hopes of an imminent power-sharing deal to address the country's bloody crisis appeared to recedeSource: FT.com - US homepage | 11 Aug 2008 | 9:58 am Inflation fears hit China sharesShanghai's main stock index slides to a 19-month low on fears that rising inflation will damage company profits.Source: BBC News | Business | World Edition | 11 Aug 2008 | 9:53 am Manufacturing costs fall but customers pay priceManufacturing input costs unexpectedly fell during July, following a decline in oil prices from last month's record high. However, producer prices are still 30.1 per cent higher than a year ago.Source: Latest Business News from Times Online | 11 Aug 2008 | 9:47 am Fannie's capital to remain under pressure: analyst (Reuters)
Source: Yahoo! News: Business | 11 Aug 2008 | 9:31 am Fannie's capital to remain under pressure: analyst(Reuters) - Fannie Mae's credit losses will exceed the company's expectations, continuing to put pressure on its capital levels and earnings, an analyst at Friedman Billings Ramsey said.Source: Reuters: Business News | 11 Aug 2008 | 9:31 am 5 steps to an emergency fundLindsay and Patrick Heineke seem to be doing everything right, financially speaking. The Whitinsville, Mass. couple are aggressively paying down mortgage debt and are saving for retirement at a pace that would put most of their twentysomething peers to shame.Source: Business and financial news - CNNMoney.com | 11 Aug 2008 | 9:25 am Credit unions hit by mortgage-market problems: report(Reuters) - Five of North America's largest credit unions are reporting big paper losses on mortgage-related securities, a sign that housing-market distress is spreading even to the most risk-averse financial sectors, the Wall Street Journal (WSJ) said on Monday.Source: Reuters: Business News | 11 Aug 2008 | 9:05 am Russian stock market hits two-year lowRussian stock markets fell further today as traders reacted to the continuing conflict in Georgia. Two benchmark Russian share indexes hit their lowest levels in nearly two years.Source: Telegraph Business | 11 Aug 2008 | 8:40 am Dollar hits six-month high despite oil surgeThe dollar surged to a six-month high against leading currencies today on concern over global economies' resilience against a major slowdown, while oil rebounded by more than $1 on supply fears following the conflict between Russia and Georgia.$Source: Latest Business News from Times Online | 11 Aug 2008 | 7:39 am Chinese shares fall: Business roundup Aug 11The CSI 300 index tumbled 4pc, overtaking Vietnam as the world’s worst performing stock market so far this year. The producer price index was up 10pc in July over the same month last year, the highest rate since 1996, the Xinhua News Agency said, citing the government’s statistics bureau.Source: Telegraph Business | 11 Aug 2008 | 7:20 am Retail, consumer confidence and inflation data dueThe dollar's rebound and oil's tumble breathed some serious optimism into Wall Street last week. But no one knows for sure yet whether the two trends are truly antidotes for what's been ailing the stock market.Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am Verizon, 2 unions agree to new 3-year contractsTentative three-year accords include 10.5% wage hikes and avert a strike set to start today.Telecommunications giant Verizon Communications Inc. and two unions said Sunday that they had new contracts, avoiding a strike today by 65,000 workers. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am Get a move on quake preparedness plansSmall businesses should take steps to minimize injury and damage in the next temblor.When the Chino Hills earthquake hit July 29, Heidi Gallegos was having lunch with an associate in nearby Diamond Bar. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am 'Nightline' at risk if Leno jumps to ABCThe newsmagazine boasts recent scoops but there may be more ad revenue in talk.This should be a new dawn for "Nightline." Instead, it could be good night. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am A pullback in businesses' capital spending bodes illThe parade of capital spending cuts may feed the economy's downturn. Many firms' optimism for 2009 evaporates.Pat Dahlson's wholesale flower business was blooming last year. He expanded from Los Angeles to Detroit, Cincinnati and other cities. He put more workers on the payroll, added trucks to his distribution fleet and dreamed of even more expansion. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am UCLA drills disabled vets on entrepreneurshipThe Anderson School of Management provides basic training to 15 recruits.Former Marine Sgt. Shawn James has found moving from the military world to the business world a difficult journey. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am Paulson is open to more stimulus aidThe Treasury chief wants to first measure the economic effects of the initial round of rebate checks.U.S. Treasury Secretary Henry M. Paulson said Sunday that he wouldn't rule out a second stimulus package but first wanted to gauge the effects of rebate checks already sent out. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am 'Dark Knight' stays steps ahead of 'Pineapple Express'The caped-crusader hit becomes the third-highest grossing film of all time.Stoner movie "Pineapple Express" fell a few hits short of knocking "The Dark Knight" out of his Batmobile as the Caped Crusader powered to his fourth straight weekend as the box-office leader. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am 'I.O.U.S.A.,' a documentary film about the U.S. budget deficit, will open Aug. 21'I.O.U.S.A.,' premiering this month, spotlights the huge financial threat that looms.A private equity billionaire, a former federal government official and a Baltimore newsletter editor have made a documentary film that they hope can do what an endless parade of policy papers has not: Persuade Americans that debt has created a looming economic crisis that would make the Great Depression look like a market correction. Source: L.A. Times - Business | 11 Aug 2008 | 7:00 am Water bills set to soar over next five yearsWater bills in England and Wales are likely to rise by up to 3 per cent a year above inflation for five years in the latest blow to British households' finances.Source: Latest Business News from Times Online | 11 Aug 2008 | 6:45 am Business newspaper roundup: August 11Key business stories from the Sunday Telegraph and other papers.Source: Telegraph Business | 11 Aug 2008 | 6:45 am Apple chief says iPhone software sales take off: report(Reuters) - In the month since Apple Inc opened the App Store, an online software clearinghouse, users have downloaded more than 60 million programs for the iPhone, Chief Executive Steve Jobs told The Wall Street Journal in an interview.Source: Reuters: Business News | 11 Aug 2008 | 6:10 am Bolivia elects Morales in recall voteEvo Morales has claimed a renewed mandate for constitutional reforms after the national recall election delivered him 60 per cent of the voteSource: FT.com - US homepage | 11 Aug 2008 | 5:55 am Paulson says won't stay at Treasury past JanuaryWASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson said in an interview aired on Sunday he had no interest in staying in his post beyond January when a new administration takes office.Source: Reuters: Business News | 11 Aug 2008 | 5:35 am Currency: NZ dollar near US70c againThe New Zealand dollar fell back to around US70c today after testing below that level for the first time in 11 months last week. By 5pm today the NZ dollar was at US70.05c, down from US70.41c at 8am. The currency, which tested...Source: New Zealand Herald - Business | 11 Aug 2008 | 5:30 am Telecom challenge launched - US investor wants seats on the boardA US-based private investment firm with a stake of around 3 per cent in Telecom is nominating two candidates to stand for election as directors of Telecom. Elliott International today said that in its view Telecom's performance...Source: New Zealand Herald - Business | 11 Aug 2008 | 4:00 am Georgia conflict pushes up world oil pricesSINGAPORE - Oil prices rebounded Monday in Asia to above US$116 a barrel on concerns a widening conflict between Russia and Georgia over a breakaway province could disrupt supplies in the region. Light, sweet crude for September...Source: New Zealand Herald - Business | 11 Aug 2008 | 3:00 am Ripples of anxietyGraft crackdown has unintended consequencesSource: BBC News | Business | World Edition | 11 Aug 2008 | 12:10 am Strategic Finance plan unveiled - 70pc of investor money in bondsDebenture holders in Strategic Finance would receive 30 per cent of their investments in instalments by March 2010, with the rest put into secured listed bonds, under a proposed capital restructure. The company suspended redemptions...Source: New Zealand Herald - Business | 10 Aug 2008 | 11:30 pm Treasury fury at No 10 as estate agents demand talks on stamp dutyAlistair Darling rejected a third request for an immediate meeting with estate agents as tension grew over suggestions to lift stamp duty.Source: Latest Business News from Times Online | 10 Aug 2008 | 11:01 pm All signs indicate that euro's joyride is at an endFeet firmly planted on the Maginot Line last Thursday, Jean-Claude Trichet reaffirmed the European Central Bank's settled conviction that “the fundamentals of the euro area are sound and the euro area does not suffer from major imbalances”. He admitted “downside risks” to growth, conceding that financial market turbulence might affect the real economy “more than currently anticipated”.Source: Latest Business News from Times Online | 10 Aug 2008 | 11:00 pm Banks braced for more bond mis-selling actionFlushed with the success of securing $40 billion of settlements from Merrill Lynch, UBS and Citigroup, US state regulators are expected to turn up the heat on banks accused of mis-selling auction rate securities (ARS).$Source: Latest Business News from Times Online | 10 Aug 2008 | 11:00 pm Berkeley markets ‘affluent country town ambience’ of Stanmore in IndiaWith the property market showing little sign of reviving, Britain's housebuilders are travelling farther afield than ever to find buyers. Their latest target: well-to-do Indians looking to buy-to-let in London.Source: Latest Business News from Times Online | 10 Aug 2008 | 11:00 pm Fletcher expected to report bad newsAnalysts expect a weaker result from Fletcher Building this week, as its residential construction and American operations take a big hit. On Wednesday, Fletcher chief executive Jonathan Ling will present the annual results for...Source: New Zealand Herald - Business | 10 Aug 2008 | 11:00 pm NZ Shares: Solid start as oil plunges, dollar shakyThe New Zealand sharemarket started the week solidly, after US stocks ended last week by soaring after oil prices plunged. Top stock Telecom clawed back 1c in early trade today to 341, having closed down 28c, or 7.6 per cent, on...Source: New Zealand Herald - Business | 10 Aug 2008 | 10:32 pm Opec income hits record as oil prices soarThe petroleum exporters' cartel has gone on a spending spree after members earned as much in the first half of this year as in all of 2007Source: FT.com - US homepage | 10 Aug 2008 | 10:30 pm Christchurch ratepayers pay $17m for Henderson propertiesChristchurch City Council has paid $17 million to buy five central city properties from struggling developer Dave Henderson. City mayor Bob Parker said the purchase was a strategic move to protect the city centre from poor development,...Source: New Zealand Herald - Business | 10 Aug 2008 | 10:00 pm Private equity takes on $8bn in RBS loansLeading private-equity firms are highlighting their transformation into investors in deeply discounted debt as they purchase more leveraged buy-out financing from banksSource: FT.com - US homepage | 10 Aug 2008 | 9:39 pm China to overtake US as largest manufacturerChina is set to overtake the US next year as the world's largest producer of manufactured goods, four years earlier than expected, as a result of the rapidly weakening US economy.Source: FT.com - US homepage | 10 Aug 2008 | 9:37 pm Rising costs hit FDI in ChinaEuropean companies have slashed investments in China amid rising labour and transport costs at the same time as they expand in eastern Europe and RussiaSource: FT.com - US homepage | 10 Aug 2008 | 9:34 pm Fed presses Wall Street banks on liquidityUS regulators are putting pressure on Wall Street banks to ensure they have enough liquid funds to withstand a financial shock as part of efforts to avoid a repeat of the "run on the bank" that sank Bear StearnsSource: FT.com - US homepage | 10 Aug 2008 | 9:31 pm Securities hurdle hampers inquiryA Securities Commission complaint about Feltex auditors Ernst & Young is being held up because the commission's own legislation bans it from handing over the paperwork. The commission has complained to the New Zealand Institute...Source: New Zealand Herald - Business | 10 Aug 2008 | 9:30 pm Kiwi's climb from Flat Bush to Dubai towersProperty consultant Darren Soo was on holiday in Rome late last year when an ex-colleague offered him the chance of a lifetime. How about the opportunity to oversee a big part of the multibillion-dollar maritime city, housing 130,000...Source: New Zealand Herald - Business | 10 Aug 2008 | 9:00 pm McDonald's same-store sales on a roll with 8pc leapDespite a tough United States economy, McDonald's posted an 8 per cent gain in July same-store sales as hungry consumers worldwide lined up for breakfast items and the classic Big Mac burger. Many have cut back on eating out amid...Source: New Zealand Herald - Business | 10 Aug 2008 | 8:30 pm Dollar at crossroads amid brighter US outlookThe dollar index, which measures its value against a basket of six major currencies, put in its best performance for over three-and-a-half years last week and boosted the dollar to its highest level for four monthsSource: FT.com - US homepage | 10 Aug 2008 | 5:55 pm Investors eye oil, dollar, retail sales this week (AP)
Source: Yahoo! News: Business | 10 Aug 2008 | 5:54 pm SEC short-sale rule ending; market move debated (Reuters)Reuters - Short trading in 19 major U.S. financial stocks will revert to rules governing other shares on Wednesday as a Securities and Exchange Commission experiment against abusive short selling expires.Source: Yahoo! News: Business | 10 Aug 2008 | 5:08 pm One year onThe causes and fall-out of the global credit crunchSource: BBC News | Business | World Edition | 10 Aug 2008 | 2:44 pm Flat-footed?How the housing slump may deprive Arsenal of cashSource: BBC News | Business | World Edition | 10 Aug 2008 | 2:40 pm
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Motorola (MOT) kept its lead in US market share by holding 25.8% of the country's cellular phone business. That was hardly the big story.
OPEC has taken full advantage of the free market system. Members are on a path to earning nearly $1.3 trillion this year as oil prices stay relatively high into the second half of the year. The huge move up in their income has allowed the cartel brethren to build out their own infrastructures at a record pace and create larger sovereign funds to invest in relatively inexpensive financial equity in the US and UK.