|
|
|
|
Zara steals Gap's crown as world's biggest fashion retailerClothing chain Zara has overtaken Gap to become the world's biggest fashion retailer.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 1:00 pm Union leaders call for wage rises in response to leap in inflationUnion leaders have demanded inflation-busting pay rises for employees as families struggle with the rising cost of living.Source: Telegraph Business | 12 Aug 2008 | 1:00 pm Union leaders call for wage rises in response to leap in inflationUnion leaders have demanded inflation-busting pay rises for employees as families struggle with the rising cost of living.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 1:00 pm Zara steals Gap's crown as world's biggest fashion retailerClothing chain Zara has overtaken Gap to become the world's biggest fashion retailer.Source: Telegraph Business | 12 Aug 2008 | 1:00 pm BP closes down Georgia pipelineEnergy giant BP says it has shut an oil pipeline that runs through Georgia as precautionary measure.Source: BBC News | Business | World Edition | 12 Aug 2008 | 12:49 pm SingTel's quarterly profit slips on climbing local currencySingapore Telecommunications Ltd.’s first-quarter profit slips due to a strengthening local currency.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:48 pm TJX profit jumps (Reuters)Reuters - Off-price retailer TJX Cos Inc posted a higher quarterly profit on Tuesday compared with a year earlier, when it took a charge related to a security breach of its computer system.Source: Yahoo! News: Business | 12 Aug 2008 | 12:41 pm TJX profit jumpsNEW YORK (Reuters) - Off-price retailer TJX Cos Inc posted a higher quarterly profit on Tuesday compared with a year earlier, when it took a charge related to a security breach of its computer system.Source: Reuters: Business News | 12 Aug 2008 | 12:41 pm London Markets: London shares edge higher as banks gainLondon shares edged higher on Tuesday, as investors bought shares in the recently-battered banking sector and oil prices stayed below $114 a barrel.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:39 pm Indications: U.S. stock futures waver amid J.P. Morgan write-offU.S. stock futures wavered between gains and losses Tuesday, with further relief on oil prices offset by negative news from the financial sector.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:37 pm Before the Bell: Goldman Sachs, McDonald's, J.P. Morgan, airlines in focusU.S. stock futures were broadly steady Tuesday as further relief on oil prices helped offset negative news from the banking sector.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:35 pm June trade gap shrinks despite oil price surge (Reuters)Reuters - The U.S. trade deficit shrank unexpectedly in June, as the weak U.S. dollar helped push exports higher and overpowered the effect of record-high prices for imported oil, a Commerce Department report showed on Tuesday.Source: Yahoo! News: Business | 12 Aug 2008 | 12:34 pm June trade gap shrinks despite oil price surgeWASHINGTON (Reuters) - The U.S. trade deficit shrank unexpectedly in June, as the weak U.S. dollar helped push exports higher and overpowered the effect of record-high prices for imported oil, a Commerce Department report showed on Tuesday.Source: Reuters: Business News | 12 Aug 2008 | 12:34 pm Economic Report: U.S. trade deficit falls to $56.8 billion on record exportsThe U.S. trade gap narrows by 4.1% to $56.8 billion in June on record exports and a decline in non-oil imports, the Commerce Department estimates.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:31 pm 24/7 Wall St. Most Overpaid CEO Of The Day: DealerTrack (TRAK) CEO Mark O'Neil
Mark O'Neil, DealerTrack's CEO is doing just fine. Actually, he is doing remarkably well. According to the DealerTrack proxy, O'Neil made almost $2.9 million in total compensation last year including a $510,000 salary. This year, his salary moved up to $525,000. Including the likely drop of 15% at today's open, the company's shares will be off over 70% for over the last twelve months.. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 12:27 pm J.P. Morgan takes write-off, Wachovia adds to lossJ.P. Morgan Chase is writing off $1.5 billion of bad mortgage loans, and Wachovia Corp. added a further $500 million reserved for a regulatory settlement to its previously reported second quarter loss as the nation’s largest banks continue to untangle themselves from market meltdowns.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:20 pm Futures flat; credit worry offsets oil's fall (Reuters)
Source: Yahoo! News: Business | 12 Aug 2008 | 12:18 pm Futures flat; credit worry offsets oil's fallNEW YORK (Reuters) - Stock index futures were little changed on Tuesday as worries about the impact of the credit crisis on the financial sector tempered optimism sparked by a further drop in oil prices.Source: Reuters: Business News | 12 Aug 2008 | 12:18 pm Morgan Stanley to buy back auction-rate securitiesMorgan Stanley says it will offer to buy back up to $4.5 billion of auction-rate securities from retail clients, following similar announcements from rivals.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 12:09 pm Medvedev orders ceasefireDmitry Medvedev ordered Russian troops to end hostilities with Georgia after five days of fighting over the breakaway enclave of South Ossetia. The Russian president said the aim of the military operation had been reached and the aggressor 'punished'. Hours after the ceasefire declaration Georgian President Mikheil Saakashvili told a huge rally in Tibilisi that Russia 'would pay' for its actionsSource: FT.com - US homepage | 12 Aug 2008 | 12:08 pm The next wave of mortgage defaultsPrime mortgages are starting to record disturbingly high default rates, which could slow any potential housing recovery.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 12:07 pm Bill Miller boosts Freddie Mac stakeSource: Business and financial news - CNNMoney.com | 12 Aug 2008 | 12:03 pm Fortress gives trader $300m shares bonusIn what must count as one of the largest retention bonuses of all time, a New York hedge fund has lavished $300m (£156m) on a 38-year-old star trader to keep him with the business.Source: Telegraph Business | 12 Aug 2008 | 12:01 pm Fortress gives trader $300m shares bonusIn what must count as one of the largest retention bonuses of all time, a New York hedge fund has lavished $300m (156m) on a 38-year-old star trader to keep him with the business.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 12:01 pm ScanCafe Secures $4 Million in Funding from Sigma PartnersSource: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 12:00 pm Movers & Shakers: Tuesday's biggest gaining and declining stocksAmong the companies whose shares are expected to see active trade in Tuesday’s session are LDK Solar, Goldman Sachs and McDonald’s.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 11:46 am For banks, the shorts are coming backShould the financial sector endure yet another harrowing period of wild market swings and rumors later this week, expect regulators to round up the usual suspects - namely, the short sellers.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 11:40 am UK inflation up to 4.4% in JulyThe UK's inflation rate jumped to 4.4% in July, up from 3.8% in June and more than twice the government's target of 2%.Source: BBC News | Business | World Edition | 12 Aug 2008 | 11:40 am Oil falls to 3-month low, IEA, Georgia in focusLONDON (Reuters) - Oil fell to a three-month low on Tuesday, dropping for the third day in a row, after the International Energy Agency predicted supplies would be more adequate and Russia called a halt to the conflict in Georgia.Source: Reuters: Business News | 12 Aug 2008 | 11:40 am European shares slip as euro, oil prices tumbleEurope's major stock markets fell on Tuesday as the European single currency slid to a near six-month low point against the dollar and oil prices extended their losses. In...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:37 am Europe Markets: Automakers climb again in steady EuropeEuropean shares moved off early lows on Tuesday, with autos doing well as the euro put in another lackluster performance against the dollar and UBS up after unveiling a plan to separate its investment banking and wealth management arms.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 11:35 am Georgia conflict 'a threat to strategic energy supplies'Fighting in Georgia threatens a strategic energy hub, the IEA warned on Tuesday, shortly before Georgia said Russia had attacked a pipeline normally carrying up to a million barrels of oil...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:34 am U.K.'s Tesco to enter India via wholesale operationTesco, the leading U.K. supermarket chain, plans to enter India’s heavily protected market by setting up a wholesale operation to supply cash-and-carry goods.Source: MarketWatch.com - Top Stories | 12 Aug 2008 | 11:32 am UBSssssssssssMore than any other bank being whacked by the credit crisis, UBS is in urgent need of a turnaround strategy. And there are questions as to whether UBS management and its board is up to the task of an overhaul. Their credibility has steadily eroded by quarter after quarter of write-downs and vague suggestions of changes at the bank. (In response to criticisms, the bank today named a new finance chief and proposed four new members for its board.) Why UBS's Wealth Management Should Stand Alone Citi's New Chief UBS Warns of Turmoil's Impact Source: Portfolio.com: Top 5 | 12 Aug 2008 | 11:30 am Associated Materials and AMH Holdings Report Second Quarter ResultsCUYAHOGA FALLS, Ohio, Aug. 12 /PRNewswire/ -- Associated Materials (the "Company") today announced results for the quarter and six months ended June 28, 2008....Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:30 am ALL Reports 2Q08 ResultsCURITIBA, Brazil, Aug. 12 /PRNewswire-FirstCall/ -- America Latina Logistica S.A. -- ALL (Bovespa: ALLL11), Latin America's largest independent logistics company,...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:30 am Top Pre-Market Analyst Downgrades (AEP, DOV, GS, HWCC, ITT, LXK, TYC, UTHR, WYNN)These are some of the key analyst downgrades or negative calls we are seeing this Tuesday morning:
Jon C. Ogg Source: 24/7 Wall St. | 12 Aug 2008 | 11:29 am Dollar continues to gain on euro, pound, yenThe dollar continued to barrel to new multi-month highs against the euro and the pound Tuesday in tandem with oil's drop. The 15-nation euro traded at $1.4888 early in New York, down...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:28 am Top Pre-Market Analyst Upgrades (ALK, AMR, AAPL, CAL, DAL, DELL, JPM, LDK, PENN, SCR, SNSS, LCC)These are some of the top analyst upgrades and positive calls we are seeing this Tuesday morning:
Jon C. Ogg Source: 24/7 Wall St. | 12 Aug 2008 | 11:23 am Sino-Forest Diluted EPS Increased 82% to $0.24 in Second Quarter 2008; Gross Margin from Integrated Operations $40 per m(3)TORONTO, Aug. 12 /PRNewswire-FirstCall/ - Sino-Forest Corporation ("Sino-Forest") (TSX:TRE and TRE.S) announced today outstanding financial results for the three and...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:22 am TAM Announces 2Q08 ResultsTo see full report, access www.tam.com.br/ir SAO PAULO, Brazil, Aug. 12 /PRNewswire-FirstCall/ - TAM S.A. (BOVESPA: TAMM4; NYSE: TAM), reports its second quarter...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:20 am Oil prices to remain high, IEA saysRead full story for latest details.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 11:15 am JPMorgan loses $1.5 billion since July (Reuters)
Source: Yahoo! News: Business | 12 Aug 2008 | 11:12 am JPMorgan loses $1.5 billion since July(Reuters) - Investment bank JPMorgan Chase & Co incurred losses of about $1.5 billion since July, hurt by turmoil in the credit and mortgage markets and by wider credit spreads and lower levels of liquidity, the company said in a regulatory filing late Monday.Source: Reuters: Business News | 12 Aug 2008 | 11:11 am SEC working on short-selling proposals: report(Reuters) - The U.S. Securities and Exchange Commission is working to unveil a proposal next month that would permanently tighten existing rules for short selling, the New York Post said citing people in talks with the agency.Source: Reuters: Business News | 12 Aug 2008 | 11:11 am Weak open seen for stocksStocks were poised for a weak start Tuesday after JPMorgan warned of further mortgage-related losses.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 11:11 am Tesco enters India with cash-and-carry, Tata dealLONDON/MUMBAI (Reuters) - Tesco Plc, the world's No.3 retailer, plans to set up shop in India with a wholesale cash-and-carry business and a deal to help Indian conglomerate Tata Group grow its hypermarket business.Source: Reuters: Business News | 12 Aug 2008 | 11:10 am Japan's wholesale inflation hits 27-year highJapanese wholesale inflation hit a 27-year high in July while consumer confidence struck a new record low, official figures showed Tuesday, adding to gloom about the health of Asia's...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:04 am Average gas price falls below $3.80Read full story for latest details.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 11:04 am JPMorgan Chase: More mortgage market losses for 3QJPMorgan Chase & Co. revealed Monday that it has incurred more substantial losses in its mortgage investments so far in the third quarter than it did in the previous three months. In a...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Aug 2008 | 11:00 am Tesco breaks into Indian grocery marketTesco, the UK's largest food chain, has made its long-awaited entry into India's retail market through a wholesale business and a tie-up with one of the country's largest conglomerates, the Tata group...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 10:58 am UBS carves up bank structure as rich clients flee (Reuters)
Source: Yahoo! News: Business | 12 Aug 2008 | 10:50 am Tough capital market hits Collins StewartCollins Stewart, the UK stockbroker currently in takeover talks, has reported an 82pc fall in first-half profits, which it blamed on the performance of its capital markets division.Source: Telegraph Business | 12 Aug 2008 | 10:50 am Tough capital market hits Collins StewartCollins Stewart, the UK stockbroker currently in takeover talks, has reported an 82pc fall in first-half profits, which it blamed on the performance of its capital markets division.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 10:50 am UBS carves up bank structure as rich clients fleeZURICH (Reuters) - UBS will split off its investment banking unit that made it Europe's top casualty of the credit crunch -- and scared off wealthy clients -- a move that analysts said signals the sale of the beleaguered business.Source: Reuters: Business News | 12 Aug 2008 | 10:49 am A Third Of US Homes Underwater?
Zillow also says that 15% of all home sales are now a result of foreclosures. If the numbers are accurate, house prices and the mortgage market debacle are going to get much worse in the current quarter. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 10:43 am Mortgage lending tumbled in June as banks tighten upMortgage lenders are continuing to restrict their loan approvals only to those with larger deposits, the Council of Mortgage Lenders warned today, which could dampen housing sales further and price out...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 10:35 am Mortgage lending tumbled in June as banks tighten upMortgage lenders are continuing to restrict their loan approvals only to those with larger deposits, the Council of Mortgage Lenders warned today, which could dampen housing sales further and price out more first time buyers.Source: Telegraph Business | 12 Aug 2008 | 10:35 am Breaking Up Whole Foods (WFMI)
According to The Wall Street Journal, the FTC might "open the possibility that it could try to halt further integration of the two companies or require Whole Foods to sell some operations." That probably won't work. What firm would want to buy a small set of health food stores and then compete with the larger and more well-established Whole Foods franchises? The other option is to simply separate the two companies. Give Whole Foods shareholders stock in each operation. Get new management for Wild Oats, and let the companies go back to warring with one and other. That may be an odd-ball approach, but it may be the only solution that works. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 10:33 am Most companies in US avoid federal income taxes (AP)AP - Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.Source: Yahoo! News: Business | 12 Aug 2008 | 10:31 am Chinese stock market hits fresh lowGood news about inflation failed to stop China's benchmark stock exchange from falling for the fourth successive day to a fresh 20-month low.Source: Telegraph Business | 12 Aug 2008 | 10:30 am Chinese stock market hits fresh lowGood news about inflation failed to stop China's benchmark stock exchange from falling for the fourth successive day to a fresh 20-month low.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 10:30 am Citigroup (C) And Bank Of America (BAC) Score A Victory In Parmalat Case -- At Expense Of Ripped Off Shareholders
Now that ruling is already coming into play, helping the investment banks that were instrumental in the $8 billion Parmalat accounting fraud get off the hook without paying defrauded shareholders a nickel. U.S. District Judge Lewis Kaplan in Manhattan dismissed a shareholder class-action lawsuit against Citigroup and Bank of America for their role in the Parmalat fraud. Investors had argued that Citigroup and Bank of America helped structure the deals that hid billions in debt but, citing the Scientific-Atlanta case, Kaplan ruled that "Investors must show reliance upon a defendant's own deceptive conduct. Plaintiffs' evidence falls well short of this standard.'' This is such a load of pro-business, anti-shareholder crap that it defies belief. The rationale behind these rulings may help the investment banks that participated in off-balance sheet deals with Enron that were clearly designed to manipulate financial results avoid any kind of comeuppance. Back in January, Gary Weiss summed up the message behind the Scientific-Atlanta ruling this way: "... A corporate management can engage in the most disgraceful acts involving third parties, but if it didn't put out a press release announcing its chicanery, it gets off the hook. This ruling is particularly toxic for Enron investors, who were victims of a wide swath of wrongdoing reaching far beyond the company." It's unbelievable. Given the billions in fees that companies like Citigroup (C) and Bank of America (BAC) earn for their "work", shouldn't they have to give some of it back when they help companies defraud shareholders? That seems so obvious. With the way court rulings have gone of late, investment banks have less of an incentive than ever to crack down on fraud in the companies they work with. That easily negates whatever positive impact Sarbanes-Oxley has had on financial reporting. Zac Bissonette Source: 24/7 Wall St. | 12 Aug 2008 | 10:18 am JPMorgan to write down $1.5 billionSource: Business and financial news - CNNMoney.com | 12 Aug 2008 | 10:14 am MUFG seeks rest of UnionBanCal for $3 billion (Reuters)
Source: Yahoo! News: Business | 12 Aug 2008 | 10:11 am MUFG seeks rest of UnionBanCal for $3 billionTOKYO (Reuters) - Mitsubishi UFJ Financial Group , Japan's largest bank, said it would bid $3 billion to buy the remaining 35 percent of California's UnionBanCal Corp , as it looks for growth beyond its softening home market.Source: Reuters: Business News | 12 Aug 2008 | 10:11 am Mortgage lending falls 32% as prices slumpGross mortgage lending slumped by more than a third in the year to June as the rate of house price growth slowed from 3 per cent to 0.6 per cent.Source: Latest Business News from Times Online | 12 Aug 2008 | 10:10 am 11 mileage-obsessed questionsIt's never been easy to buy a car, but with soaring gas prices, you may have a lot more to ask about what's best for you. Here are the answers.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 10:07 am The Apple (AAPL) iPhone Is Broken
Now it turns out the one of Apple's big suppliers, Infineon Technologies, has probably shipped Jobs & Co. a faulty chipset. According to MarketWatch, investment bank Nomura says "We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier." The trouble could be a torpedo in Apple's attempts to make the iPhone the de facto high-end smartphone in both the US and large cellular markets abroad. The new product was supposed to give consumers a substantially better product than the first generation of the handset. With iPod sales slowing, the iPhone was going to be Apple's next revenue growth engine. The smartphone market is a war zone for companies which have a much larger share of the handset world than Apple does. Nokia (NOK) plays in the field and it has 40% of the global market for handsets. LG, Samsung, Sony Ericsson, and RIM (RIMM) do not just want to defend their pieces of the lucrative end of the industry. They want to expand it. The iPhone flaw could push back important sales opportunities by a quarter or two. No one knows how long it will take to correct the problem. What is certain is that Apple has opened the door for companies that desperately don't want it to succeed. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 10:07 am Russia calls halt to Georgian war - CNNSource: Business and financial news - CNNMoney.com | 12 Aug 2008 | 10:06 am UBS changes tactics as losses deepenRead full story for latest details.Source: Business and financial news - CNNMoney.com | 12 Aug 2008 | 10:03 am UBS reorganises in bid to revive its fortunesSwiss banking giant UBS plans to slice its business into three units after announcing losses of 173m for the second quarter.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 10:02 am UBS reorganises in bid to revive its fortunesSwiss banking giant UBS plans to slice its business into three units after announcing losses of £173m for the second quarter.Source: Telegraph Business | 12 Aug 2008 | 10:02 am Asia markets fall on economic concernsAsia-Pacific equities fell on Tuesday as concerns over economic growth eroded gains from companies benefiting from a decline in the price of oil.The Nikkei 225 dropped 1 per cent to 13,303.60, while the...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 9:53 am Sterling plunges below $1.90 after inflation dataSterling dropped below $1.90 against the dollar for the first time in almost two years on Tuesday as rocketing inflation data fuelled concerns over the prospects for the UK economy.Official figures showed...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Aug 2008 | 9:53 am Oil Prices: The Trend Is Still Up
Actually, most of the reasons for higher oil still exist. There has been no increase in production. If consumption has dropped in China and other parts of the developing world that trend is temporary. The growth they will need to be large exporters over the next decade will still require the use of tremendous amounts of crude. If the conflict in Georgia becomes more severe. oil supply out of that part of the world could be cut for an indefinite period. The International Energy Agency is not backing down on its argument that the general direction of crude oil prices is up. The agency estimates demand for oil will rise 1.1% next year. According to MarketWatch, "the IEA warned against complacency on prices, saying it's too early to cite a sea change in the market when there a number of warning signs." Perceptions of what would happen to the price of oil turned on a dime early this year. First analysts said crude could hit $100 a barrel. Then estimates moved up to $120 and $150. As oil pushed near the $150 level, the predictions moved to $200 by the end of 2008. The prevailing opinions have now turned 180 degrees. Predictions now point to oil dropping below $100. The stock market improvement over the last two weeks has depended on the falling price of oil as much as it has anything else. Corporate earnings certainly did not bring enough cheer to lever up a rally. Predicting oil prices has become like weather forecasting. People have put away their umbrellas but it is likely to rain again. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 9:47 am In UBS (UBS) Break-Up, A Lesson For Merrill Lynch (MER) and Citigroup (C)
UBS (UBS) skinned its investors alive again by posting a $329 million loss on another $5.1 billion in write-downs. The bank made it clear that these troubles came from its investment bank and that its wealth management business was secure. That has not mattered to worried clients who do business with the healthy part of the company. They want out of any risk the institution might have. UBS did what many companies do when merging pieces together has not worked. They are pulling the pieces apart. According to The Wall Street Journal, UBS "said it will begin separating its troubled investment bank from its money-management arm for the wealthy." The ship many be sinking, but at least the crew can save the women and children. While the move is not exactly a "good bank, bad bank" strategy like the one used by some financial companies in the US three decades ago, it does wall-off the healthy part of the company. Several US firms have a problem almost identical to the one at UBS. JP Morgan (JPM), considered one of the better run American banks, said it had lost $1.5 billion in July due to falling values in mortgage-backed paper. If JP Morgan is still having these troubles it is easy to imagine that they are worse at more troubled firms including Merrill Lynch (MER), Citigroup (C), and Wachovia (WB). There has been a great deal of talk about breaking Citigroup into pieces. The primary reason behind this is that it would make it easier for the conglomerate to sell off divisions to raise money. But, now there is a more compelling reason. Money held by private clients can be segregated from the parts of the bank which are mired in an asset sewage. The concerns of consumer customers can be assuaged by cutting off the troubled part of the company. Merrill Lynch, Citigroup, and Wachovia will almost certainly be faced with more very large write-offs and the need to raise more capital. That capital and the dilution that goes with it should sit where they belong in the investment banking divisions of the companies. Both consumer clients and shareholders should have the chance of being associated with the part of the firms that will almost certainly do well. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 9:28 am JP Morgan losses gather momentumJP Morgan Chase says it has sustained $1.5bn in losses related to the sub-prime crisis since the end of June.Source: BBC News | Business | World Edition | 12 Aug 2008 | 9:10 am Tesco to open wholesale outlets in IndiaTesco will spend £60m setting up a wholesale cash-and-carry business in India over the next two years, strengthing its foothold in the world's emerging economies.Source: Telegraph Business | 12 Aug 2008 | 9:00 am UBS unveils shake-up as losses widenThe Swiss bank, which is Europe's biggest casualty of the subprime crisis, reported further writedowns of $5.1bn as it slumped to a loss for the second quarter and announced a raft of personnel changesSource: FT.com - US homepage | 12 Aug 2008 | 8:49 am Woolworths turns to DIY chief for new bossWoolworths, the struggling high street retailer, revealed today that Steve Johnson, former chief executive of Focus DIY, will succeed Trevor Bish-Jones.Source: Telegraph Business | 12 Aug 2008 | 8:45 am IEA cuts oil demand forecastsThe energy watchdog said record oil prices has hit demand in the US and Europe but warned it is too early to say the market has peakedSource: FT.com - US homepage | 12 Aug 2008 | 8:42 am Inflation surges to record 4.4% in JulyInflation surged to a record high of 4.4 per cent in July, more than double the Government's 2 per cent target, due to the rocketing cost of food.Source: Latest Business News from Times Online | 12 Aug 2008 | 8:40 am Tesco planning venture in IndiaUK supermarket giant Tesco unveils plans to move into the Indian market by setting up a wholesale business.Source: BBC News | Business | World Edition | 12 Aug 2008 | 8:16 am News Digest 8/12/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters writes the UBS (UBS) posted a huge loss and will split itself into a wealth management operation and an investmen bank. Reuters reports that Wachovia (WB) lost $9.11 billion and cut more jobs than it initially announced. Reuters writes that Morgan Stanley (MS) is trying to cut an auction-rate deal with New York state. Reuters reports that Countrywide faces an FTC investigation. The Wall Street Journal reports that airline stocks are continuing their upswing. The Wall Street Journal reports that securities backed by consumer loans are making Wall St. concerned about the health of consumers and businesses. The Wall Street Journal reports that AMD (AMD) will release a new graphics card to challenge Nvidia (NVDA). The Wall Street Journal reports the Ebay (EBAY) customers are starting to take their businees elsewhere. The Wall Street Journal writes that Liberty is open to swapping its stake in Time Warner (TWX) for the AOL dial-up business. The Wall Street Journal reports that banks are continuing to tighten credit for businesses and consumers. The Wall Stree Journal reports that S&P cut some ratings on Fannie Mae (FNM) and Freddie Mac (FRE). The Wall Street Journal says Circuit City (CC) is haveing trouble finding a buyer. The Wall Street Journal reports that Ford (F) promises to build better small cars. The Wall Street Journal reports that Toyota (TM) may start exporting cars from the US. The Wall Street Journal reports that the FTC plans hearings on the Whole Foods (WFMI) merger. The New York Times reports that investors are struggling with the effects of the war between Russia and Georgia. The New York Times writes that pilots have asked that the CEO of United (UAUA) step down. The FT reports that institutional investor believe that another large financial firm will fail. Bloomberg reports that one-third of Americans owe mortgages which are worth more than their houses. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Aug 2008 | 7:52 am UBS in revamp as losses rack upSwiss bank UBS says it will reorganise itself into three units, after announcing another set of sub-prime losses.Source: BBC News | Business | World Edition | 12 Aug 2008 | 7:30 am Tesco debuts in India through cash and carryTesco, Britain's largest supermarket chain, is making its first foray into the Indian retail market with plans to build a wholesale cash-and-carry business as well as signing a deal with India’s Tata Group to develop its hypermarket business.Source: Latest Business News from Times Online | 12 Aug 2008 | 7:17 am Woolworths, UBS: Business roundupThe 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 | 12 Aug 2008 | 7:10 am NBC's Olympics coverage boosts General Electric in ChinaThe Games are expected to generate at least $1.7 billion in revenue from advertising time and sales of GE industrial products that have been incorporated into Olympic venues.General Electric Co. is poised to capture some gold from the 2008 Olympic Games in Beijing. Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Loss-battered Vineyard Bancorp's future uncertainVineyard National Bancorp said Monday that housing-related losses and depositors' withdrawals have cast doubt on its future and it must raise substantial amounts of new capital to continue operations through this year.Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Gangs get into identity theftEasy methods and the availability of tools have attracted Crips, the Mexican Mafia and other groups, experts say.Identity theft is soaring in California, and street gangs are angling for a piece of the action. Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Gold leads latest dive in commoditiesIf you were hoping to buy gold for a lot less than $1,000 an ounce, you're getting your chance.Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Stocks end higher, extending last week's gainsStocks overall benefit from an oil price drop, but a Fed report on tightening credit keeps a lid on the day's rally.Small stocks are once again looking like big ideas after their prices rocketed Monday, extending the category's sharp rebound since mid-July. Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am More mortgage troubles for Ed McMahonThe former 'Tonight Show' sidekick, who is battling to fend off foreclosure of his Beverly Hills home, has been sued by a lender who claims McMahon defaulted on a $250,000 loan.Mortgage troubles continue to bedevil Ed McMahon, the former sidekick to Johnny Carson on "The Tonight Show," who has been battling to fend off foreclosure of his Beverly Hills home. Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Olympic sponsors' splash diluted by rogue marketersAdvertisers without official ties to the Games are elbowing in. Some analysts wonder whether sponsorship is worth the hefty fees.When former Chinese gymnastics champion Li Ning ascended on a high wire to the top of the Olympic stadium Friday to ignite the caldron, it was a magical finale to a dazzling opening ceremony. It was also a coup for his athletic-wear firm -- especially considering that Li Ning Co. isn't even an official sponsor of the Games. Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Downey Financial stops cash drain but warns of funding riskStruggling thrift Downey Financial Corp. said Monday that it succeeded in stanching a recent outflow of deposits. But the lender warned that if cash began to flee again, it could face a hard time lining up new sources of capital.Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Taking shots at ShotPaksThe pocket-size alcoholic pouches appeal to teens, some worry. The makers say they're filling a niche.The makers call it a "party in a pouch." Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Gasoline prices tumble in U.S., CaliforniaAs for what's driving oil, some point at crude speculators' influence. Others say its market forces such as demand.The escalating military conflict between Russia and Georgia and damage to a strategic pipeline in Turkey weren't enough to stop crude oil from continuing its downward slide Monday. Source: L.A. Times - Business | 12 Aug 2008 | 7:00 am Steve Johnson to run WoolworthsWoolworths's new chief executive, Steve Johnson, could take home a total pay package worth £8.1 million if he manages to turn round the ailing high street retailer.Source: Latest Business News from Times Online | 12 Aug 2008 | 6:55 am President pardons Hyundai's bossChung Mong-koo, the chairman of Hyundai Motor, is one of those to receive a pardon from South Korea's president.Source: BBC News | Business | World Edition | 12 Aug 2008 | 6:49 am New boss for WoolworthsTroubled retailer Woolworths names former Focus DIY boss Steve Johnson as its new chief executive.Source: BBC News | Business | World Edition | 12 Aug 2008 | 6:35 am UBS shake-up as losses growUBS, the embattled Swiss bank, today announced that it is replacing its finance director after less than a year as it revealed its fourth consecutive quarter of losses reached SwFr358 million (£171.9 million).Source: Latest Business News from Times Online | 12 Aug 2008 | 6:35 am Currency: US$ strength drives down othersFurther strength in the US dollar pushed the New Zealand dollar and other currencies lower today, with the kiwi hitting a fresh 11-month low. By 5pm, the kiwi was at US69.70c from US70.05c late yesterday afternoon. With the Australian...Source: New Zealand Herald - Business | 12 Aug 2008 | 5:30 am Drugmakers protest plan on legal costs: report(Reuters) - Six leading drugmakers sent a letter Friday to U.S. accounting-rule lawmakers objecting to a proposed rule that would require companies to disclose estimate costs of all continuing litigation, the Wall Street Journal said Tuesday.Source: Reuters: Business News | 12 Aug 2008 | 5:11 am Virgin Blue ambitions greater than just Tasman: reportPacific Blue's announcement of new trans-Tasman services is seen as part of a plan by parent company Virgin Blue to create an Asia-Pacific network. Yesterday Pacific Blue said it would start flying nine return trips a week from...Source: New Zealand Herald - Business | 12 Aug 2008 | 3:30 am World oil prices keep tumbling - China demand slowingNEW YORK - Oil prices finished at a new three-month low Monday after briefly dropping below $US113 a barrel mark, as the dollar extended its rebound and more signs emerged that China's energy demand could be levelling off. In earlier...Source: New Zealand Herald - Business | 12 Aug 2008 | 3:00 am Powerco fails in Appeal Court gas decisionPowerco, New Zealand's second biggest energy network company, has failed in a court bid to overthrow a Commerce Commission decision to regulate its gas distribution business. The commission took direct control of Powerco and Vector's...Source: New Zealand Herald - Business | 12 Aug 2008 | 2:00 am Focus on liquor legislation overhaulA major overhaul of liquor legislation by the Law Commission will be the focus of work for Philip Robinson, the recently elected chairman of Distillers Association of New Zealand. "We understand this will be a thorough review which...Source: New Zealand Herald - Business | 12 Aug 2008 | 2:00 am Chinese companies seek Olympic boostSome Chinese companies hope to grab some of the Olympic spotlight to get their name out into the world market. Scott Tong reports from Beijing.Source: Marketplace | 12 Aug 2008 | 1:55 am Storms destroy a year's worth of West Coast logsTimberlands West Coast (TWC) says last month's catastrophic gales have cost it a year's worth of logs. The immediate impact on supply to local sawmills will be minimal as current harvest areas were relatively unscathed, but total...Source: New Zealand Herald - Business | 12 Aug 2008 | 1:00 am After The Close - MondayFLUOR (FLR), a construction firm for the oil and gas industry, said its Q2 EPS more than doubled to $1.13, beating views by 31 cents. Revenue rose...Source: Investor's Business Daily: BUSINESS | 12 Aug 2008 | 12:41 am IPO Market Still In Doldrums, But Pipeline Is FatteningThe initial public offering market may be in a coma, but it's not dead yet.Source: Investor's Business Daily: BUSINESS | 12 Aug 2008 | 12:41 am In Brief - MondayEZCorp (EZPW), a pawnshop operator and short-term lender, said its acquisition of pawnshop operator Value Financial Services had been terminated...Source: Investor's Business Daily: BUSINESS | 12 Aug 2008 | 12:41 am Trends & Innovations - MondayGene linked to smoking addictionSource: Investor's Business Daily: BUSINESS | 12 Aug 2008 | 12:41 am Business Briefs - MondayResearch In Motion gains share. Fueled by strong demand for its consumer-oriented BlackBerry smart phones, Research In Motion RIMM captured 10% of...Source: Investor's Business Daily: BUSINESS | 12 Aug 2008 | 12:41 am Advertisers trim plans as slowdown hits APN in NZTrans-Tasman media company APN News and Media says the economic slowdown is affecting its businesses in New Zealand with a number of major advertisers cutting back their advertising plans. APN today reported trading revenue for...Source: New Zealand Herald - Business | 12 Aug 2008 | 12:00 am Olympic curbsChinese factory shutdowns cause Indian shortagesSource: BBC News | Business | World Edition | 11 Aug 2008 | 11:33 pm Morgan Stanley ARS buyback offer rejectedMorgan Stanley said it was willing to buy back about $4.5bn in auction rate securities in response to pressure from regulators, but New York's attorney-general rejected the offer as "too little, too late"Source: FT.com - US homepage | 11 Aug 2008 | 11:29 pm Cash breakWarnings for when spending money on foreign holidaysSource: BBC News | Business | World Edition | 11 Aug 2008 | 11:28 pm Seeds of optimismDo food prices mean farmers are having a ball?Source: BBC News | Business | World Edition | 11 Aug 2008 | 11:22 pm Malone eyes swap for AOL dial-up armLiberty Media is considering swapping its shareholding in Time Warner for the dial-up business of AOLSource: FT.com - US homepage | 11 Aug 2008 | 11:15 pm Russian petro-confidence seen in warHow will the war in Georgia affect Europe, which gets 25 percent of its oil from Russia? Host Kai Ryssdal turns to a European and Eurasian expert to find out.Source: Marketplace | 11 Aug 2008 | 11:12 pm JPMorgan struck by $1.5bn writedownJPMorgan Chase provided evidence of more turbulence in financial markets, warning that credit conditions had forced it to take a $1.5bn writedown on mortgage-backed assets in JulySource: FT.com - US homepage | 11 Aug 2008 | 11:11 pm Fall in oil price could let bank relaxA few weeks ago, the outbreak of war in Georgia would have created panic in the oil market. Yesterday, traders shrugged off the threat to Western supplies through the BTC pipeline.Source: Latest Business News from Times Online | 11 Aug 2008 | 11:00 pm Supermarkets pricing spells death for petrol forecourtsMore than 500 petrol stations could close this year as smaller forecourts are squeezed out of business by the credit crunch and an escalating supermarket price war.Source: Latest Business News from Times Online | 11 Aug 2008 | 11:00 pm Small businesses shift to home workingChats around the water cooler are becoming a thing of the past for more workers as rising costs and a desire to reduce commuting persuade businesses to abandon traditional offices.Source: Latest Business News from Times Online | 11 Aug 2008 | 11:00 pm MoD scraps £227m Phoenix spy drone that hated heat and landed upside-downAs a spy drone, it had its disadvantages. To land, it had to flip on its back. It could not operate in extreme heat or in thin air and became known as the “bugger off” because it frequently did, never to return.Source: Latest Business News from Times Online | 11 Aug 2008 | 11:00 pm Georgia gambit may end slide in crude priceThose of a materialist mindset might speculate that Russia's blitzkrieg into Georgia last week was motivated less by a sense of solidarity with its poor benighted brethren in South Ossetia and more by a determination to manipulate global energy markets.Source: Latest Business News from Times Online | 11 Aug 2008 | 11:00 pm Kiwi dollar falls to 11 month lowThe New Zealand dollar fell to an 11-month low against the greenback shortly before 8am today, as the US currency gained while the price of oil continued to fall. By 8am the kiwi was buying US69.84c, having dropped to around US69.75c...Source: New Zealand Herald - Business | 11 Aug 2008 | 11:00 pm NZ guest nights down 5pc in JuneTotal guest nights in short-term commercial accommodation fell 5 per cent in June compared to a year earlier, Statistics New Zealand (SNZ) says. The fall of 96,000 guest nights took the June figure to 1.7 million, which was 1 per...Source: New Zealand Herald - Business | 11 Aug 2008 | 11:00 pm Chinese React Stridently to Bush Comments on Human RightsSource: Bloomberg - All Podcasts | 11 Aug 2008 | 10:45 pm NZ Shares: Market eases early as Telecom slips furtherThe New Zealand sharemarket eased in early trade, as top stock Telecom slipped further. Around 10.25am the benchmark NZSX-50 index was down 3.66 points to 3366.53, after rising 12.4 points yesterday. While many stocks showed...Source: New Zealand Herald - Business | 11 Aug 2008 | 10:34 pm Investors fear another big financial firm failureInstitutional investors expect another big financial firm will collapse within the next six months in the continued fallout from the credit crunch, according to new research from Greenwich AssociatesSource: FT.com - US homepage | 11 Aug 2008 | 10:30 pm Citi Calls Amazon's Kindle Next Must-Have Gadget (One-Day Wonder)Analyst calls Amazon.com's Kindle electronic reader the next hot holiday gadget.Source: SmartMoney.com | 11 Aug 2008 | 9:52 pm Decline in Gold Tarnishes Metals ETFs (Daily ETF Wrap-Up)ETFs that hold the precious metal slid after gold prices spiraled lower.Source: SmartMoney.com | 11 Aug 2008 | 9:50 pm Author Maraniss Says Politics Still `Rife' in OlympicsSource: Bloomberg - All Podcasts | 11 Aug 2008 | 9:48 pm 5 New Ways to Clip Coupons (Deal of the Day)New technologies and services make coupon clipping more accessible for shoppers.Source: SmartMoney.com | 11 Aug 2008 | 9:05 pm Harry Clark of Clark Capital Advocates Biotechnology ETFsSource: Bloomberg - All Podcasts | 11 Aug 2008 | 9:01 pm VIX Index of U.S. Stock Prices Retreats 2.6 % to 20.12Source: Bloomberg - All Podcasts | 11 Aug 2008 | 8:59 pm Chrysler, Near Death, Readies for a SaviorThere hasn't been much good news out of Auburn Hills lately. Shakeups at Chrysler Financial, ending leasing, deep discounts on cars and trucks and talks of sales or mergers have grabbed headlines, and most analysts agree Chrysler's days as an independent automaker are numbered. "I can't see how they could continue for more than a year and a half or two years," Global Insight analyst Aaron Bragman tells Wired.com. According to Bragman, Chrysler doesn't have the reserves, sales volume and international presence to compete in the current climate and so may begin "moving away from manufacturing their own cars." Such predictions may be coming closer to reality. The Wall Street Journal reports Chrysler and Nissan are talking about working together on a mid-size car in hopes of boosting a segment where Chrysler's Dodge Avenger and Chrysler Sebring have been outsold by the class-leading Camry and Accord almost 7-to-1. Clues that Chrysler is preparing for a sale or a merger have been a long time coming. First of all, Bragman says, the company's taken the unusual step of announcing operating profits and cash on hand. Such an announcement is not required for a private company but may be used to court a potential buyer or partner. Chrysler is saying they aren't for sale, but "that's what they'd be expected to say," Bragman tells us. "As soon as there are sale talks, customers would start to abandon Chrysler in droves." Another problem for Chrysler is dealers can no longer offer leases through Chrysler Financial. Instead of leases, Chrysler Financial is now offering massive discounts (as much as 40 percent on the Dodge Ram) and loan terms that should be measured in dog years. Chrysler says a customer who would be interested in a lease can now own a car for a lower monthly payment after 72 months. Of course, after the wild success of nontraditional mortgages, what buyer wouldn't be tempted to spend six years making payments on a rapidly depreciating asset? Most buyers are getting sick of their cars after 39 months and aren't interested in a six-year loan, Bragman said, so dealers are worried about the impact of ending leasing. Accordingly, Global Insight is forecasting a drop in sales volume. As if these woes aren't enough, Chrysler is simply selling products few people want in the greener, more efficient automotive market. Roughly 75 percent of Chrysler's sales are large trucks and SUVs, a market that hasn't been easy for any manufacturer. The $2.99 a gallon "Let's Refuel America" gas promotion was largely a flop, says Bragman, and perhaps the only bright spot in Chrysler's future is minivan sales may rebound as consumers begin trading in their gas-guzzling SUVs for the Grand Caravans that are Chrysler's bread and butter. While Cerberus might be hoping to unload Chrysler faster than dealers are moving Sebrings (one a month!) the Journal's Heidi Moore speculates that a savvy buyer will wait for a Hemi-size discount. Related LinksChrysler Throttles Down Auto Sales Crashed in April The Most Dangerous Deal in America Source: Portfolio.com: Top 5 | 11 Aug 2008 | 8:30 pm Stocks Finish HigherAnother decline in crude oil futures kept the rally alive. Financials and consumer cyclicals led the market.Source: SmartMoney.com | 11 Aug 2008 | 8:14 pm Shareholders Can Pay Price of Olympic Sponsorship (Ticked Off)Do shareholders get their money's worth from costly Summer Games sponsorships?Source: SmartMoney.com | 11 Aug 2008 | 7:53 pm John Keeley Jr.: Seasoned Value Seeker (Today From Barron's)Talking With John Keeley Jr., founder and CIO of Keeley Asset Management.Source: SmartMoney.com | 11 Aug 2008 | 7:35 pm Political Advertising Fire SaleWith dwindling ad budgets sparking concerns that ad targets will not be met this year, television networks are rolling back prices for political advertising. AdAge reports that television stations are lowering rates in the hopes of meeting their targets: "In some markets, where panicked stations are desperate to show they're moving ad units, the cuts may be as much as 15% to 20% from two years ago." This is also in contrast to (perhaps even at the expense of) the outpouring that McCain and Obama have made in Olympic advertising. Obama's $5 million buy was the largest significant presidential investment in television advertising in 16 years, but he was quickly outspent by McCain — who made a last minute purchase of $6 million for ads during the games. All this is making NBC quite flush, and the other networks might be feeling the vacuum, sparking concerns that campaigns will not continue to invest in TV elsewhere. But McCain spokesman Brian Rodgers is looking forward to taking advantage of the lower rates. "We will continue to buy advertising in key battleground states moving forward. And lower rates allow you to do a bit more advertising than you normally would." A tight presidential race could be a boon for the networks. Political advertising has already done wonders for Paris Hilton. Who knew being maligned by John McCain could help a flailing brand so quickly? Related LinksIt's Not Working All in Moderation: Who Is Best? Extra Credit, Friday Edition Source: Portfolio.com: Top 5 | 11 Aug 2008 | 7:30 pm Commodities Get a Bear HugWell, that was fast.Commodities officially entered bear market territory after the Standard & Poor's GSCI index fell again today, reaching levels 22 percent below its high set on July 3. Oil now trades for around $113 a barrel, after reaching a high of $147.27 on July 11. The price of a gallon of gasoline fell for the 25th consecutive day, to $3.81. Gold is down 20 percent from its high in March, and corn, soybean, wheat, and copper are also down by as much, Bloomberg reports. But before you break out the champagne, it's important to put it in perspective. The GSCI index is still up 14 percent for 2008. Investors poured money into commodities throughout the spring and early summer during what hedge fund manager Paul Touradji called a "buying orgy." It was an investor-driven surge, rather than a fundamental shift in supply and demand. The reason for its reversal is likely the same. While the commodities market certainly had plenty of froth to eliminate, it's far from certain that this downturn will continue at this pace. The Russian conflict with Georgia has not yet impacted oil's decline, but investors are keeping a close eye on the action near several oil fields. If the conflict lasts longer than just a few more days, finicky commodities investors could have yet another change of heart. Related Links Moody's Blues S&P Stops Rating Bonds Which Aren't Being Issued "No Sign of a Bottom" Source: Portfolio.com: Top 5 | 11 Aug 2008 | 7:30 pm Tenants pay as speculators walk awayAs subprime defaults soar, officials in Merced, northern California, are blaming foreclosures on speculators from nearby San FranciscoSource: FT.com - US homepage | 11 Aug 2008 | 6:52 pm Freezing out copycat ice cream trucksI scream, you scream, we all scream for... trademark infringement? Joel Rose has more on ice cream truck company Mister Softee's legal battle against imposters.Source: Marketplace | 11 Aug 2008 | 6:20 pm Tiny Smart Car's Gas Mileage Is High, Price AffordableSource: Bloomberg - All Podcasts | 11 Aug 2008 | 6:07 pm Ozick's `Dictation,' Stourhead Gardens, Dogs on BroadwaySource: Bloomberg - All Podcasts | 11 Aug 2008 | 6:01 pm Millions Who Had Abortions Don't Know It: CommentarySource: Bloomberg - All Podcasts | 11 Aug 2008 | 6:01 pm 7 Nasty Airline Fees and How to Avoid Them (Deal of the Day)How to avoid getting hit with fees for everything from baggage to a bag of chips.Source: SmartMoney.com | 11 Aug 2008 | 5:55 pm Boeing might not bid for tanker contractThe Defense Department changed the rules for landing a $35 million contract to build an aerial refueling tanker, and now, word is that Boeing won't bid. John Dimsdale reports.Source: Marketplace | 11 Aug 2008 | 5:38 pm Trash company merger could cost usWaste Management today raised by 10 percent its bid to buy its biggest competitor in the trash business. Ashley Milne-Tyte asks what happens to us if that merger goes through.Source: Marketplace | 11 Aug 2008 | 5:38 pm Apple Apps pulling in $1 million a dayApple's new online store where iPhone and iPod owners can download games and other software is already an incredible success. Jeremy Hobson checks it out.Source: Marketplace | 11 Aug 2008 | 5:38 pm That FDIC insurance doesn't come freeThe FDIC's guarantee on our bank deposits is, in fact, an insurance system, not something financed with taxpayer money. In tough times, banks pay higher premiums for that insurance. Steve Henn reports.Source: Marketplace | 11 Aug 2008 | 5:38 pm Hedging your bets in hard timesCommentator Megan McArdle has some advice for making your way through these hard times -- hedge your bets. That's right, just like the big companies do.Source: Marketplace | 11 Aug 2008 | 5:38 pm Digging Out of Medical Debt (Consumer Action)Even the insured get buried in medical debt. Here's how to handle those pricey bills.Source: SmartMoney.com | 11 Aug 2008 | 5:32 pm Long-Running Commodities Boom Goes Bust (Tradecraft)Gold, oil lose leadership roles after long run. Plus: Food stock for thought.Source: SmartMoney.com | 11 Aug 2008 | 4:34 pm Politicians Change Rules of Investing for Worse (Tradecraft)From Moscow to Washington, elected officials are rewriting the rules of investing.Source: SmartMoney.com | 11 Aug 2008 | 4:30 pm Brinker International Cut to `Sell' From `Neutral' at GoldmanSource: Bloomberg - All Podcasts | 11 Aug 2008 | 3:35 pm US stocks pull back after last week's rally (AFP)
Source: Yahoo! News: Business | 11 Aug 2008 | 2:35 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 $50s. 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 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
|
Now that courts have let the FTC have another bite at the Whole Foods (WFMI) merger with Wild Oats, it plans to examine the deal within an inch of its life. If the agency proves that the marriage is indeed anti-competitive, it will be interesting to see how it plans to de-merge the company. 
With the price of crude down from over $145 to about $115, all of the talk is that the rising price of oil has been contained by falling demand and a better dollar. Almost every one of the dynamics which took oil prices up are gone now.The cost of things like gas can go back to "normal".
According to Reuters, JP Morgan (JPM) lost $1.5 billion in July.