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Angry Fortis investors demand reforms after ABN takeoverThe £55bn top-of-the-market takeover of Dutch bank ABN Amro continued to weigh on financial group Fortis as angry investors called for reforms and control over rewards for directors.Source: Telegraph Business | 18 Aug 2008 | 3:03 pm Angry Fortis investors demand reforms after ABN takeoverThe 55bn top-of-the-market takeover of Dutch bank ABN Amro continued to weigh on financial group Fortis as angry investors called for reforms and control over rewards for directors.Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 3:03 pm Pakistan's Musharraf announces resignationEmbattled President Pervez Musharraf, under mounting pressure to quit in the face of an impeachment motion, announced his resignation in a televised address devoted to a lengthy defence of his nine years in officeSource: FT.com - US homepage | 18 Aug 2008 | 3:01 pm Financial shares roil Wall St on credit worryNEW YORK (Reuters) - Stocks fell on Monday as investors fretted about the prospect of more losses from the mortgage crisis, sending shares of the two big U.S. home finance providers and other financial companies lower.Source: Reuters: Business News | 18 Aug 2008 | 2:54 pm Stocks Take a DipThe major indexes sagged as oil prices hovered around $114 a barrel. Lowe's topped estimates.Source: SmartMoney.com | 18 Aug 2008 | 2:50 pm Rising commodity prices weigh on Wall StreetWall Street stocks fell slightly as commodity prices moved higher, helping mining and energy stocks but hurting broader equity marketsSource: FT.com - US homepage | 18 Aug 2008 | 2:49 pm Electronic Arts will let Take-Two offer expire todayElectronic Arts Inc. will let its offer to buy Take-Two Interactive Software Inc. expire tonight because the companies won't be able to merge in time for the holidays.Source: L.A. Times - Business | 18 Aug 2008 | 2:42 pm 24/7 Wall St. Day-Trading Alerts (HD)(LOW)(TTWO)(ERTS)(FNM)(FRE)
At the top of the list are Freddie Mac (FRE) and Fannie Mae (FNM) dropping on comments from Barron's that the common shareholders in the company could be wiped out. Lowe's (LOW) and Home Depot (HD) are moving on heavy volume after Lowe's posted better-than-expected earnings. Trading activity is also up in Take-Two (TTWO) and Electronic Arts (ERTS), as the larger company indicated that it will let its offer to buy Take-Two expire. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Aug 2008 | 2:39 pm Bond Report: Treasury bonds gain as U.S. stocks fallTreasury prices fall Monday, sending yields higher, as U.S. stock futures pointed to early gains on Wall Street.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:36 pm Market Snapshot: U.S. stocks fall as oil rises, financials woes returnU.S. stocks drop as rising crude oil prices fuel uncertainty about the economy, while worries about ailing financials are rekindled by several media reports.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:36 pm Europe Markets: Oil producers, miners offset exporters, airlines in steady EuropeMiners and oil producers lead a turnaround for European shares on Monday, offsetting some weakness for exporters and airlines.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:34 pm Lowe's profit beats Wall St viewATLANTA (Reuters) - Retailer Lowe's Cos reported a higher-than-expected quarterly profit on Monday, helped by U.S. consumers spending tax rebate checks, and raised its full-year forecast, sending shares up about 2 percent.Source: Reuters: Business News | 18 Aug 2008 | 2:33 pm Australian Miner Raises the Bar (BHP, RTP)
BHP's costs rose by about 4.3% above FY2007 costs, with half that increase due to higher energy and raw materials costs. The weaker dollar also hit the bottom line hard, costing the company $1.133 billion before taxes. Revenue from petroleum increased more than 82% over FY2007, and production grew by 13%. The company's ADRs (which represent 2 fully paid shares) are up about $1.50 in early trading on the NYSE this morning. The big recent news for BHP, though, has been it's offer to acquire Britain's Rio Tinto (NYSE:RTP) for about $147 billion. Rio Tinto has rejected the offer twice, once in November 2007 and again in February. BHP has indicated that it will wait for a ruling, expected in December, from the European Commission on the regulatory aspects of the deal. The combined company would control more than one-third of the world's stocks of iron ore. It's not hard to imagine how hard European steelmakers will try to scuttle this deal. BHP stock has dropped more than 15% since its first offer for Rio Tinto. The spectre of that offer, and its ultimate success, will probably limit the stock's appreciation. This deal should probably be scrapped..... But the urge to merge in metals and mining stocks might outweigh common sense.
Paul Ausick Source: 24/7 Wall St. | 18 Aug 2008 | 2:30 pm Georgia, US question 'Russian withdrawal'Russia said it had begun withdrawing its troops from Georgia after western leaders joined together to increase pressure on Moscow – but a senior US official said there had been no signs so far of a pullout while Georgia accused Moscow of blowing up Georgian stores of ammunition and weaponrySource: FT.com - US homepage | 18 Aug 2008 | 2:30 pm New Fannie, Freddie fears hit sharesShares of Fannie Mae and Freddie Mac tumbled Monday on a report suggesting that a government takeover of the troubled mortgage finance giants is inevitable.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 2:29 pm UnionBanCal accepts higher Mitsubishi UFJ offerUnionBanCal Corp., California's second-largest bank, agreed to sell its remaining shares to Mitsubishi UFJ Financial Group Inc. for an increased bid of $3.5 billion.Source: L.A. Times - Business | 18 Aug 2008 | 2:28 pm Lowe's profit drops 7.9 %, still beats viewNEW YORK --Lowe's Cos. Inc. reported a 7.9 percent decline in second-quarter profit on Monday, but still topped Wall Street expectations as the nation's second-largest home improvement retailer benefited from tight expense controls and the government stimulus checks. Its shares rose more than 3 percent in morning trading.Source: L.A. Times - Business | 18 Aug 2008 | 2:26 pm Wall Street pulls back as oil prices advanceNEW YORK -- Wall Street fell modestly in early trading today as a rebound in oil prices back to the $115 level raised the market's uncertainty about the economy.Source: L.A. Times - Business | 18 Aug 2008 | 2:25 pm Linens 'n Things plans bankruptcy exit: report (Reuters)
Source: Yahoo! News: Business | 18 Aug 2008 | 2:23 pm Linens 'n Things plans bankruptcy exit: report(Reuters) - Bankrupt home furnishings retailer Linens 'n Things has devised a plan to emerge from bankruptcy early next year, the New York Post reported.Source: Reuters: Business News | 18 Aug 2008 | 2:23 pm Financial Stocks: Fannie, Freddie lead financials lower at openFannie Mae and Freddie Mac help drag financial-sector stocks lower after Barron’s says the U.S. Treasury is increasingly likely to recapitalize the two mortgage giants.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:23 pm Some investors may be left out of auction rate settlementDespite the recent rash of auction-rate securities settlements between regulators and the Wall Street banks, investors shouldn't hold their breath waiting to be cashed out.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:20 pm BAA completes 13bn buy-out debt dealBAA, the UK airport operator, on Monday completed the 13.3bn ($24bn) refinancing of the debt put in place to back its buy-out by a Ferrovial-led consortium, after a two-year effort.The completion of three...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 2:19 pm Retail Stocks: Retail stocks slip as Lowe's beats expectationsRetail stocks creep downward as home-improvement chain Lowe's posts better-than-expected earnings and investors look forward to results from Target, Saks and Home Depot.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:18 pm 24/7 Wall St. Most Overpaid CEO Of The Day: Gatehouse (GHS) CEO Michael Reed
Today, research firm Morningstar wrote, "We think GateHouse's equity is worthless. The company has been an aggressive acquirer, which resulted in an unmanageable debt load." CEO Michael Reed brings home a base of $500,000 according to the Gatehouse proxy. In the meantime, GHS stock is down well over 90% to $.69. The stock has traded below $1 long enough that there is a real threat it could be delisted from the NYSE. All of that for a half a million a year. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Aug 2008 | 2:17 pm Electronic Arts to let Take-Two offer lapse (Reuters)
Source: Yahoo! News: Business | 18 Aug 2008 | 2:13 pm Electronic Arts to let Take-Two offer lapseNEW YORK (Reuters) - Electronic Arts Inc has decided to let its $2 billion buyout offer for Take-Two Interactive Software Inc expire on Monday, but the two video game publishers are still in private talks.Source: Reuters: Business News | 18 Aug 2008 | 2:13 pm Tech Stocks: EA, Take-Two highlight quiet day for tech stocksTechnology stocks hunt for direction as the sector stays mostly quiet, aside from the latest events in Electronics Arts’ efforts to acquire Take-Two.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:12 pm Stocks struggle as oil gainsStocks dipped early Monday as oil prices turned higher on tropical storm worries and the dollar weakened against major currencies.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 2:10 pm London Markets: Miners, oil producers move higher in flattish LondonMiners advanced on Monday in London as commodity prices firmed, with the move helping to cushion the top share index against losses from companies that usually suffer when oil prices rise.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:10 pm Asking price for average U.K. house drops $10,000U.K. house prices continued to decline in August, with London the worst-hit area, according to a survey published Monday by Rightmove, the U.K.’s largest online housing Web site.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:09 pm Goldman Sachs Third-Quarter Estimate Cut at Fox-Pitt KeltonSource: Bloomberg - All Podcasts | 18 Aug 2008 | 2:07 pm Energy Watch Part III: Big Oil Well Off Highs (XOM, COP, RDS.A, CVX, BP, MRO, PCZ, APA)
Refining and marketing have had a serious impact on earnings for all these companies, with the exception of Apache, which is strictly an exploration and production operation. Refining margins are either way down or non-existent. As we've noted before, gasoline inventories are at the top of their historical ranges, primarily because US drivers are keeping their cars parked. What's selling at premium prices are diesel and jet fuel, and refineries are aggressively seeking light, sweet crude that yields as much as 30 gallons of distillates per 42-gallon barrel. Production declines in Nigeria have reduced supplies of this type of crude by as much as 400,000 b/d. The refineries are forced to turn to heavy, sour crude which yields only about 20 gallons of distillates per barrel. This has driven up the cost of diesel and jet fuels, and put a serious crimp in major oil company valuations. The situation is unlikely to change until refineries increase their capacity to produce distillates from the heavier crudes. Most are working on the issue, but it will take some time and some serious investment. A final word about Apache. It's second quarter earnings and revenues beat analysts' expectations, but production declines cast a chill over the good news. Big oil valuations depend on proved reserves and quarterly production. Production glitches have been covered up by high prices, and proved reserves are not growing. That combination is strong enough to keep stock prices low even when these companies report record earnings. Yes, it's a mean old world.
Paul Ausick Source: 24/7 Wall St. | 18 Aug 2008 | 2:05 pm Biotech Stocks: Drug stocks edge higher as Dyax rocketsDrug stocks rise slightly, while shares of Dyax jump up on news that it plans to file for U.S. regulatory approval of its drug candidate DX-88.Source: MarketWatch.com - Top Stories | 18 Aug 2008 | 2:05 pm Wall Street pulls back as oil prices advanceWall Street fell modestly in early trading Monday as a rebound in oil prices back to the $115 level raised the market's uncertainty about the economy. Light, sweet crude rose $1.09 to...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 2:03 pm Beazer Homes' Free National Video Webinar Aims to Simplify New Tax Credit Law for First-Time Homebuyers77 Percent of Survey Respondents Unaware of the Availability of $7,500 Tax Credit ATLANTA, Aug. 18 /PRNewswire-FirstCall/ -- Beazer Homes USA, Inc. (NYSE: BZH), one...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 2:01 pm Introducing Genworth Financial Wealth Management Integrating AssetMark and Genworth Financial Asset ManagementRICHMOND, Va., Aug. 18 /PRNewswire-FirstCall/ -- Genworth Financial, Inc. (NYSE: GNW) today announced the launch of its new wealth management division, Genworth FinancialSource: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 2:00 pm Photos: Lindblad Expeditions' Newest Expedition Vessel, The National Geographic Explorer, Sets SailState of the Art Expedition Vessel Travels Through Arctic Waters With Its First Guests NEW YORK, Aug. 18 /PRNewswire/ -- Lindblad Expeditions (LEX), the NY-based ...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 2:00 pm More unlock money in homes to save for retirementThe number of older home owners who are looking to release equity from their houses has soared as they search for ways to boost their retirement funds, new figures show.Source: Telegraph Business | 18 Aug 2008 | 2:00 pm More unlock money in homes to save for retirementThe number of older home owners who are looking to release equity from their houses has soared as they search for ways to boost their retirement funds, new figures show.Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 2:00 pm Washington's solution: Wait it outThese are the dog days of summer, the height of our national vacation season. But instead of hitting the beach, people in Washington and on Wall Street are spending their days all atwitter with ideas of what new regulations and rules and controls we need to deal with our financial market meltdowns, the worst since the Great Depression almost 80 years ago.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 1:57 pm Mining keeps FTSE steadyLondon's benchmark index was slightly higher on Monday as modest gains for resource stocks offset losses in the financial sector, while climbing oil prices lifted energy stocks. In afternoon trade the...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 1:56 pm The McGraw-Hill Companies Appoints Peter C. Davis President of McGraw-Hill EducationNEW YORK, Aug. 18 /PRNewswire-FirstCall/ -- The McGraw-Hill Companies (NYSE: MHP) today announced the appointment of Peter C. Davis, as president of McGraw-Hill...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 1:53 pm Lowe's beats expectationsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 1:51 pm China SPAC Goes Operational: Alyst Acquisition Corp. (AYA)There was a release this morning showing that a Special Purpose Acquisition Company (SPAC, or blank check company) called Alyst Acquisition Corp. (AMEX: AYA) has signed an agreement to acquire all of the shares of China Networks Media Ltd., a British Virgin Islands company which owns and is in the process of acquiring television station operating assets in the People's Republic of China. Alyst will redomesticate to the British Virgin Islands by merging with China Networks Holdings immediately prior to consummating its transaction with China Networks. Chardan Capital Markets, LLC is acting as exclusive advisor to the transaction. China Networks' Advertising Networks Limited has positioned itself as a fast growing television advertising network in China. China Networks provides local, national and international advertisers with direct access to China's rising audience of consumers. Through long-term contracts, it also operates as the exclusive advertising arm for stations within its network. China Networks was established in October 2007 and has completed the consolidation of two television advertising companies to date with additional negotiations in progress with other Chinese stations.
Combined "audited carve-out revenue" for Kunming Taishi Information
Cartoon Co., Ltd and Shanxi Yellow River and Advertising Networks
Cartoon Technology Co., Ltd for the year ending 2007 was approximately
$21.0 million, with net income of approximately $14.7 million. China
Networks' consolidation of each
Jon C. Ogg Source: 24/7 Wall St. | 18 Aug 2008 | 1:48 pm BeaconEquity.com Issues Trade Alerts on Technology Stocks: ADSK, VMW, CDNS, ACIW, MENT, MCRSDALLAS, Aug. 18 /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 | 18 Aug 2008 | 1:47 pm Wall Street opens mixed as oil advancesWall Stret fluctuated in early trading Monday as a rebound in oil prices back above $115 a barrel injected more uncertainty into the stock market. Light, sweet crude rose $1.27 to...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 1:46 pm Millionaires in the making: The RodriguesesJohn and Gina Rodrigues have always been good with numbers. John is a software engineer who manages a team at Microsoft, and Gina spent years processing mortgages at Wells Fargo and Countrywide Home Loans. But the numbers they are especially good at are the kind with dollar signs in front of them.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 1:46 pm Astoria Federal Savings Announces Top Winners of Its 3rd Annual Teach Children to Save Essay ContestGrand Prize Winner Receives a Personal Computer Astoria Federal's Education First Initiatives in Action LAKE SUCCESS, N.Y., Aug. 18 /PRNewswire/ -- Astoria Federal...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 1:46 pm Oil rises as storm nears GulfOil prices rose Monday as a strengthening storm threatened oil production facilities in the Gulf of Mexico and offset worries about falling global demand.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 1:44 pm Stock prices rise as investors watch oil pricesStocks are modestly higher, with investors monitoring rising oil prices but cautiously upbeat about better-than-expected results from Lowe's Cos. Light, sweet crude is up $1.01 at...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 1:41 pm Lowe's profit beats Wall St view (Reuters)
Source: Yahoo! News: Business | 18 Aug 2008 | 1:38 pm Wall Street heads for higher open as oil advancesStocks are modestly higher, with investors monitoring rising oil prices but cautiously upbeat about better-than-expected results from Lowe's Cos. Light, sweet crude is up $1.01 at...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Aug 2008 | 1:36 pm Lowe's 2Q profit drops 7.9 pct, still beats view (AP)
Source: Yahoo! News: Business | 18 Aug 2008 | 1:34 pm U.S. dollar rally takes a breather as commodities riseNEW YORK (Reuters) - The U.S. dollar slipped against the yen and a basket of currencies on Monday, weighed down by a recovery in oil prices which gave investors the opportunity to take profits on the greenback's recent sharp rally.Source: Reuters: Business News | 18 Aug 2008 | 1:27 pm A Small-Cap Champion (Today From Barron's)A small-cap fund manager who catches winners — and dodges losers.Source: SmartMoney.com | 18 Aug 2008 | 1:23 pm Romano's Macaroni Grill stake soldRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 1:13 pm Trina Solar second-quarter earnings soarNEW YORK (Reuters) - Chinese solar power company Trina Solar Ltd said on Monday quarterly earnings more than doubled, as increased global demand for solar energy drove solar module shipments.Source: Reuters: Business News | 18 Aug 2008 | 1:11 pm Lowe's Manages By Staying Cautious (LOW, HD)
While it beat earnings, it is cautious with projections ahead. Lowe's sees a 1% sales gain in all of 2008 compared to 2007 with same store sales expected at -6% to-7% for the year. The company also put earnings in a range of of $1.48 to $1.56 EPS versus $1.50 estimates. There were not really many changes to earnings estimates over the last 90 days for this quarter report, but estimates have come in $0.04 for 2008 over the last 90 days and estimates for 2009 (Jan2010 technically) have come down $0.15 over the lasy 90 days to $1.59 EPS. Although Lowe's is very cautious on the macroeconomic pressures currently seen in the market, Wall Street seems initially happy about the performance seen in a tough environment. Shares are indicated up about 4% pre-market at $25.65 with about 100,000 shares having traded hands. The 52-week trading range is $18.00 to $32.53. The strength is actually enough to have an impact on shares of DJIA component Home Depot Inc. (NYSE: HD), where shares are up about 1.5% at $27.95 with a 52-week trading range of $20.76 to $38.54. If Lowe's keeps staying cautious on the economy and managing its expenses on the P&L statement it might not even need any natural disasters to beat lower earnings estimates ahead.
Jon C. Ogg Source: 24/7 Wall St. | 18 Aug 2008 | 12:59 pm JPMorgan sees opportunity in long financials trade (Reuters)Reuters - J.P. Morgan Securities' U.S. equity strategists saw opportunity in going "short" energy and "long" financials, as capital flows and macro developments were likely to be less favorable to energy relative to financials.Source: Yahoo! News: Business | 18 Aug 2008 | 12:58 pm JPMorgan sees opportunity in long financials trade(Reuters) - J.P. Morgan Securities' U.S. equity strategists saw opportunity in going "short" energy and "long" financials, as capital flows and macro developments were likely to be less favorable to energy relative to financials.Source: Reuters: Business News | 18 Aug 2008 | 12:58 pm Energy pressures set to lift Wall StreetWall Street stocks were set for a modestly higher start on Monday, as mining and energy stocks followed some commodity prices higher, overshadowing reduced sales estimates from Hershey.Crude oil prices...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 12:55 pm Panmure Gordon sells 10% stake to Egyptian bankEFG-Hermes, the Egyptian investment bank with extensive operations in the Gulf, has bought 9.97 per cent stake in Panmure Gordon, the London stockbroker.Source: Latest Business News from Times Online | 18 Aug 2008 | 12:47 pm Corel's Questionable Buyout Evaporates (CREL)
This buyout was for the 31% of the company that Corel Holdings, L.P. did not already own. There were already some questions as to whether or not this buyout was 1) going to become effective and 2) actually get approved by shareholders. The buyout for the remaining shares was going to be at $11.00 per share, yet shares closed at $9.44 on Friday and the 52-week trading range is $6.94 to $13.95. The buyout group has withdrawn this and will allow the company to pursue strategic alternatives to create value. As shares were at $9.44 on Friday, this deal seems suspect or less trusted than other management buyouts. This is supposedly on the grounds that it will "facilitate pursuit by Corel of alternatives for maximizing value for all of Corel’s shareholders." Whether or not you believe that reasoning is up to you. If you look over our initial analysis when the offer was made, we noted that it didn't look like this deal was an assured slam dunk that would be approved. So far no shares have traded hands pre-market. The average volume is now only about 14,000 shares as this has been a pending merger for some time. We'll be looking for more volume today.
Jon C. Ogg Source: 24/7 Wall St. | 18 Aug 2008 | 12:38 pm Storm worries push up oil priceOil prices rise to about $114 a barrel amid concerns that a tropical storm may disrupt oil operations in the Gulf of Mexico.Source: BBC News | Business | World Edition | 18 Aug 2008 | 12:38 pm Eurozone's trade deficit narrowsThe eurozone sees its trade deficit shrink sharply in June from the month before, but fail to meet forecasts.Source: BBC News | Business | World Edition | 18 Aug 2008 | 12:28 pm Quarter of new B&B shares boughtBradford & Bingley says 27.8% of the shares offered under its £400m rights issue have been taken up by investors.Source: BBC News | Business | World Edition | 18 Aug 2008 | 12:19 pm Vodafone raises call charges to combat lost revenueVodafone today added to the increasing cost of living burdening Britons after it announced plans to raise its minimum call charges, leaving customers paying higher mobile phone bills.Source: Latest Business News from Times Online | 18 Aug 2008 | 12:01 pm Michael Page shares jump on hostile Adecco takeover reportsShares in Michael Page jumped more than 12pc after spurned Swiss suitor Adecco said it may go hostile.Source: Telegraph Business | 18 Aug 2008 | 11:50 am Michael Page shares jump on hostile Adecco takeover reportsShares in Michael Page jumped more than 12pc after spurned Swiss suitor Adecco said it may go hostile.Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 11:50 am Citi rejigs Asia Pacific operationsCitigroup on Monday unveiled a major reorganisation of its Asia Pacific operations, handing key regional executives greater responsibility across the bank's product range. The radical move, designed to...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 11:38 am Babcock & Brown Power hit by writedownSYDNEY, Aug 18 (Reuters) - Australian investment firm Babcock & Brown Power Ltd (BBP) said it would take a A$452m ($393m) writedown, knocking its shares down more than 40 per cent and dealing a fresh...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 11:36 am Early-Bird Analyst Upgrades & Downgrades (CDNS, BEAT, CMVT, HSY, IM, LMNX, MAN, RHI, TWGP, WDFC)These are not all of the early calls from analysts out there, but these are some of the calls that may impact the prices of these shares this summer Monday morning:
Jon C. Ogg Source: 24/7 Wall St. | 18 Aug 2008 | 11:20 am Egypt bank buys 10% of Panmure GordonEFG-Hermes, the biggest publicly traded Gulf investment bank, will buy a 10 per cent stake in British stockbroker Panmure Gordon, marking the first big foray by a Middle Eastern bank into the London financial...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 11:12 am Eygpt bank buys 10% of Panmure GordonEFG-Hermes, the biggest publicly traded Gulf investment bank, will buy a 10 per cent stake in British stockbroker Panmure Gordon, marking the first big foray by a Middle Eastern bank into the London financial...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Aug 2008 | 11:12 am MUFG clinches US bank with higher offerMitsubishi UFJ is set to take full control of Union Bank of California, in a $3.5bn buyout which is the second-largest outbound M&A deal involving a Japanese financial institution this yearSource: FT.com - US homepage | 18 Aug 2008 | 11:04 am Woolworths bid from Iceland founder rejectedShares in Woolworths were up 15pc on Monday morning after the struggling retailer yesterday issued a firm snub to Malcolm Walker's offer to buy the company's retail chain, branding it "unacceptable".Source: Telegraph Business | 18 Aug 2008 | 11:01 am MUFG sweetens UnionBanCal bid to $3.5 billion (Reuters)
Source: Yahoo! News: Business | 18 Aug 2008 | 10:54 am MUFG sweetens UnionBanCal bid to $3.5 billionTOKYO (Reuters) - Mitsubishi UFJ Financial Group has sweetened its bid for full control of California bank UnionBanCal Corp by 17 percent to $3.5 billion, a deal that would help Japan's biggest bank expand in the United States.Source: Reuters: Business News | 18 Aug 2008 | 10:54 am UnionBanCal accepts $3.5 billion bidRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 10:44 am BHP delivers record breaking resultsMarius Kloppers, chief executive of BHP Billiton, said the proposed takeover of rival Rio Tinto made 'more sense than ever' as the mining giant delivered another record breaking set of annual resultsSource: FT.com - US homepage | 18 Aug 2008 | 10:42 am Hiscox profits boosted by internet salesBy Rupert NeateSource: Telegraph Business | 18 Aug 2008 | 10:35 am France's economic growth slows to a trickleThe French economy will eke out modest growth of just 0.1 per cent in the present quarter, after suffering a surprise contraction in the previous three months, the Bank of France said today.Source: Latest Business News from Times Online | 18 Aug 2008 | 10:32 am Russia And An Economic Iron Curtain"From Stettin in the Baltic to Trieste in the Adriatic an iron curtain has descended across the Continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe." Churchill, 1946
For some time the conventional wisdom has been that the largest economic and military threat the to US is an expanding China. It has the world's largest standing army and is the fastest growing large economy in the world. China has been viewed as unmatched as a rival to the West. Most of that wisdom has been spun onto its head in the last two weeks. Not only has Russia invaded Georgia. It has placed missiles there. It recently menaced Poland, the site of NATO's anti-missile shield, by saying the country is a potential target for a military attack. Over the weekend, the Times of London reported that the Russian Balkan Fleet may put nuclear weapons on its ships for the first time since the Cold War. While the odds of a major military conflict may seem remote, an economic one could be in the offing. Russia has the opportunity to disrupt the economies of Europe, America, and Japan. It might cost the country tens of billion of dollars in export profits, but the central government may be able to underwrite that as part of flexing it muscles. Russia is the second largest oil exporter in the world. BP is already in a battle with the Russians over its joint venture to explore and produce new oil reserves. Royal Dutch Shell was recently forced to sell its part of a joint venture to Russian oil operation Gazprom. If Russian wants to squeeze the West by moving up global oil prices, it has already signaled that it can do so. Russia is also the world fifth-largest exporter of grain cereals. According to the FT, Russia plans to form a state grain trading company to control up to half of the country's cereal exports. The marshaling of export controls is not likely to simply be handiwork to create efficiency. It is almost certainly an artifice to modestly disguise the opportunity for Russia to wage an economic war if need be. In short, it is a Cold War waged in the corn fields. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Aug 2008 | 10:27 am Emerging Market Funds/ETFs Starting To Look Cheap (CHN, EWM, LDF, MSF, RAF, TAO, TRF, IF, EZA, CH)Every day we cover many stocks at the end of the day which are hitting new 52-week lows. Very rarely do we include ETF's or closed-end mutual funds in the coverage on that list. But what is becoming amazing is the daily reckoning we are witnessing where the 52-week low list is dominated by emerging market instruments that trade on the NYSE or AMEX as ETF's and as closed-end funds. The list is becoming so staggering that you wonder just were the money really is going. The US dollar is getting some strength finally, but the markets in emerging markets are getting pounded daily in these instruments. We searched for funds and ETF's in emerging markets from Eastern Europe to Russia to Asia to Africa to South America... and the actual sell-off from highs is starting to look amazing. We haven't even had a global economic crisis that hit Asia like we did in 1998. Interestingly enough, much of this may be solely on the global growth slowdown and a flight to quality. What else is interesting is that chasing inflows and outflows for investors in US markets versus emerging markets in real invested dollar terms is staggering. To move the market value of the DJIA up 1% in real supply/demand driven stock markets is massive. The value of the DJIA's 30 components alone is worth more than $3.5 Trillion on last look. It doesn't really take $35 Billion worth of net excess and aggregate stock buying to drive the entire DJIA up 1%, but so the theory goes. But a $35 Billion rotation into even a basket of emerging markets would create one hell of a market day around the globe. Below are some of the closed-end mutual funds and ETF's from emerging markets that hit 52-week lows on Friday and we have even shown how far some of these are off from their stated 52-week highs:
Here are a few others with recognized names which have hit 52-week lows in recent days or are at least very close to 52-week lows, and here we have shown Friday's closing price and how far down these are from stated 52-week highs as well:
If we were allowed to go on and on, this list of near-low emerging market ETF's would go on and on as well. Markets, particularly emerging markets, never die off permanently and indefinitely. Many investors use these funds for their IRA's and for long-term speculation. While troubles are abound in Afghanistan, Iraq, Georgia, Sudan, and other great destinations, remember the long steadfast advice attributed to Templeton's Mark Mobius: "Invest when there is blood in the streets." As far as where these trade in the days and weeks ahead is anyone's guess. Most investors start falling in love with emerging markets after they have made massive runs and when they look stable. It takes those with guts and foresight to begin investing in these after they have seen major sell-offs. Closed-end funds can also trade at huge premiums or discounts their net asset values, and we won't dare make the analogy these markets are cheap just because they have sold off so much. But all of these instruments do track markets rather than just a couple stocks and as we noted, those markets never stay down or out of favor forever.
We have started covering some of these issues for long-term investors and here are some of the recent articles:
Jon C. Ogg Source: 24/7 Wall St. | 18 Aug 2008 | 10:16 am Pound strengthens slightly against dollarSterling edged up slightly against the dollar when the market opened this morning, after it had fallen to a new two-year low on FridaySource: Telegraph Business | 18 Aug 2008 | 10:10 am Pakistan shares up on resignationPakistan's leading share index rises more than 4% on the news that President Pervez Musharraf is to step down.Source: BBC News | Business | World Edition | 18 Aug 2008 | 10:06 am Michael Page takes lone stance as profits riseMichael Page, the UK recruitment company, today attempted to reassure investors it is capable of weathering the global economic slowdown as an independent company after last week ending takeover talks with Switzerland's Adecco.Source: Latest Business News from Times Online | 18 Aug 2008 | 9:53 am Analysts expecting large loss from Lehman: reportNEW YORK (Reuters) - Some analysts are girding for a third-quarter loss of $1.8 billion or more from U.S. investment bank Lehman Brothers Holdings Inc, instead of the modest profit they had previously expected, the Wall Street Journal reported on Sunday.Source: Reuters: Business News | 18 Aug 2008 | 9:50 am Record profits for BHP BillitonMining giant BHP Billiton unveils record annual profits for the seventh year in a row thanks to surging commodity prices.Source: BBC News | Business | World Edition | 18 Aug 2008 | 9:33 am Miner BHP Billiton posts record profitSource: Business and financial news - CNNMoney.com | 18 Aug 2008 | 9:31 am Recruitment firm sees profit riseRecruitment company Michael Page reports a rise in profits as Swiss rival Adecco says it will not rule out an unrecommended offer for the firm.Source: BBC News | Business | World Edition | 18 Aug 2008 | 9:27 am Growth concerns dent China sharesChina's main share index falls by 5.3% to a 20-month closing low on fears that slowing growth will dent corporate profits.Source: BBC News | Business | World Edition | 18 Aug 2008 | 9:10 am UK bank gets Egyptian investmentPanmure Gordon, the British stockbroker and investment bank, announces a large Egyptian bank will buy a share in its business.Source: BBC News | Business | World Edition | 18 Aug 2008 | 8:58 am BHP Billiton reports record profitsProfits at BHP Billiton, the world's biggest miner, shot up by 22pc this year after record production of commodities driven by demand in China and India.Source: Telegraph Business | 18 Aug 2008 | 8:50 am Qwest reaches deal with 2 unionsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Aug 2008 | 8:33 am Bradford & Bingley achieves better-than-expected rights issue take-upBradford & Bingley has achieved a slightly better-than-expected take up of its £400m rights issue, after shareholders bought almost 28pc of new shares on offer by the deadline on Friday.Source: Telegraph Business | 18 Aug 2008 | 8:28 am Michael Page may face hostile bid from AdeccoSpurned recruitment group Adecco may go hostile in its bid for Michael Page, its British rival that today announced strong first-half growth despite the cut backs in City jobs.Source: Telegraph Business | 18 Aug 2008 | 8:20 am China's Changfeng had talks on GM's Hummer: sourceSHANGHAI (Reuters) - General Motors Corp has had preliminary talks with Hunan Changfeng Motor Co on a possible sale of its Hummer brand but the Chinese sport utility vehicle (SUV) maker has backed off, a source with direct knowledge of the matter said.Source: Reuters: Business News | 18 Aug 2008 | 8:19 am Rightmove shares plunge on new housing blowShares of Rightmove, the UK's largest online housing website, plunged today after it said that prices were shrinking further.Source: Latest Business News from Times Online | 18 Aug 2008 | 8:10 am Oil prices jump on tropical storm fearsOil prices bounced as the latest tropical storm in the Gulf of Mexico saw producers evacuate workers.Source: Telegraph Business | 18 Aug 2008 | 7:45 am BHP Billiton says Chinese demand lifts profits to record $15.4bn$The world’s largest mining company, BHP Billiton, unveiled a record $15.4 billion profit this morning, fuelled by high commodity prices and continued strong demand from China.$Source: Latest Business News from Times Online | 18 Aug 2008 | 7:40 am Hiscox insurance defies the gloomHiscox, the UK-listed insurance group, brushed aside the turmoil in financial markets and the credit crunch to register record first-half profits today.Source: Latest Business News from Times Online | 18 Aug 2008 | 7:27 am If Turkish coffee gets hot, he could get richMustafa Arat is proud of his homeland's namesake brew, and he's proselytizing about it on the Web. VideoMustafa Arat knows how to sell. Source: L.A. Times - Business | 18 Aug 2008 | 7:00 am In the Olympic Games, fringe sports have their fansUnfamiliar events get their moment of glory in Beijing and on the big screen in a Pasadena sports bar. Trampoline, anyone?As night bar manager at Barney's Beanery in Pasadena, Eric Gonzalez has an awesome responsibility: He's master controller of nearly 100 televisions. Source: L.A. Times - Business | 18 Aug 2008 | 7:00 am Record labels seek more action on Rock Band and Guitar HeroThe firms deserve a bigger piece of the profit from music titles, Warner CEO Edgar Bronfman Jr. says.Many music industry executives facing a CD sales slump love the sound of Guitar Hero and Rock Band. Source: L.A. Times - Business | 18 Aug 2008 | 7:00 am Foreign airlines cutting flights to Los Angeles International AirportThe reductions would add to troubles for the local economy and fliers.Los Angeles International Airport, battered by financially devastated domestic airlines, is now headed for trouble from overseas. Source: L.A. Times - Business | 18 Aug 2008 | 7:00 am DreamWorks Animation's growth focuses on 3-DThe film studio will begin work to add 100,000 square feet of production space at its Glendale complex.DreamWorks Animation SKG Inc., creator of the hit "Shrek" films, is bulking up in a big way. Source: L.A. Times - Business | 18 Aug 2008 | 7:00 am 'Tropic Thunder' bolts ahead of 'Dark Knight' at the box officeThe comedy starring Ben Stiller, Robert Downey Jr. and Jack Black takes in an estimated $26 million, bumping Batman into second place.It took a trio of prima donna actors to finally topple the Caped Crusader. Source: L.A. Times - Business | 18 Aug 2008 | 7:00 am Bradford & Bingley cash call takes a hitBradford & Bingley (B&B), the troubled buy-to-let mortgage bank, today said shareholders subscribed to 27.8 per cent of its £400 million rights issue, leaving almost 73 per cent with underwriters, Citigroup and UBS.Source: Latest Business News from Times Online | 18 Aug 2008 | 6:42 am Why Pickens and Gore Are WrongTo drill or not to drill? That has been the question this summer as Congress, the president, and both candidates debate where and whether we should be exploring for domestic oil. The implication is that this is an important step in reducing our dependence on imported oil.It is not. Oil—wherever it is produced—is priced, sold and consumed in a global marketplace. Whatever the outcome of this existential debate, any incremental oil will be sold to the highest bidder, in the U.S.—or in other countries— most of which have an insatiable appetite for oil. Such flaws of strategic logic seem to show up in most discussions on what to do. We must discipline ourselves to follow a more rigorous approach, which can be hard to do given the enormous importance energy has in our lives. The plans announced recently by T. Boone Pickens and former Vice President Al Gore provide a good opportunity to think through our strategic options, by means of a comparative look. (See the Portfolio.com Green Machine graphic to find out where investors are putting their cash in the clean-tech game.) I include as a third option a plan to allow cars and trucks on U.S. roads to run primarily on electricity drawn from the regular electric grid. Pickens proposes to build massive wind farms in the nation's center to generate a large part of America's electricity, which would then liberate the natural gas that is currently used to generate electricity. If the cars on the road were to be retrofitted to run on natural gas, Pickens argues, the need to import the corresponding amount of petroleum would disappear. Setting aside the task of retrofitting over 200 million vehicles, this plan raises a fundamental question. Natural gas, like oil, is a global commodity that can be shipped anywhere. Even if it is produced in the United States, what makes it stay here? It does so if, and only if, the United States pays the prevailing market price for it, just as we are paying market price for the petroleum fueling our cars today. So very little would change. Vice President Gore's focus is on carbon reduction. He proposes that by 2018, 100% of America's electricity be generated from sources such as wind, solar and geothermal. Doing so would free a lot of oil, imported and domestic alike, as well as coal and natural gas. The oil, coal and natural gas that the U.S. does not use would become available for others through the world market. Correspondingly, carbon emissions would be shifted to other countries, but the world's total would not be reduced. And, in spite of this effort, cars on the road would still be fueled by petroleum. I have been arguing that the first task—Job 1—is the electrification of the transportation sector. The fuel needs of transportation account for a very large part of the nation's petroleum consumption. Even more important is that today only petroleum and agri-fuels can be used as sources of energy for the overwhelming majority of the nation's vehicles, even though the residential, industrial, and commercial needs for fuel can be satisfied using the full range of energy sources. Put another way, the various sources of energy are fungible for residential, industrial, and commercial uses, but not for transportation. If we are to undertake the equivalent of open-heart surgery on our economy, we must insist that after the trauma, the fuel for all segments of the economy should be capable of coming from multiple sources of energy. This will allow us to cope with the unexpected, and will prepare us for future transition to renewable sources of energy like wind and solar. This is why fungibility in transportation is important. This approach has its problems too. As with Pickens' plan, cars and trucks, old and new, must be converted. They need to be able to run on electric power, even if only partially. As we make progress, we will become increasingly dependent on battery technology and manufacturing, most of which currently takes place outside the U.S. If investments in battery manufacturing abroad outstrip domestic investments, this situation is reinforced. In addition, improved battery technologies may end up using exotic metals. As we scour the periodic table of elements, our hunt may lead us to yet another set of dependencies. The key features of the three approaches, in a comparative fashion, are shown in this table. Santiago Why Environmentalism is Here to Stay Melting Ice Caps? Let's Bet. Source: Portfolio.com: Top 5 | 18 Aug 2008 | 2:00 am Freightways profits up again despite domestic pressureTransport and freight company Freightways says it has weathered a tough domestic market and soaring fuel bills to achieve yet another year of profit growth. After tax profits were $32.3 million for the full year to the end of...Source: New Zealand Herald - Business | 17 Aug 2008 | 11:30 pm Eurostar cleaners set to strikeWorkers who clean Eurostar trains travelling between the UK and mainland Europe vote to strike in a pay dispute.Source: BBC News | Business | World Edition | 17 Aug 2008 | 11:15 pm Telenor to fight Siberian court orderTelenor, the Norwegian telecoms group, is to appeal against a court decision ordering it to pay $2.8 billion ($£1.5 billion) in damages for delaying an acquisition by VimpelCom, a Russian telecoms company in which it is a leading shareholder.Source: Latest Business News from Times Online | 17 Aug 2008 | 11:00 pm Eurozone plight creates global tipping pointThere are moments in the financial markets when, abruptly, the conventional wisdom among investors about where the global economy is, and where it is headed, gets severely disrupted. Last week was one of those moments.Source: Latest Business News from Times Online | 17 Aug 2008 | 11:00 pm Light at the end of the tunnel? Services survey shows July growthSure it's not much, but positive signs are slowly starting to emerge that could mean we're crawling out of the winter recession. It's the BNZ Business NZ Performance of Services Index and it was up slightly in July. Admittedly...Source: New Zealand Herald - Business | 17 Aug 2008 | 11:00 pm NZ Shares: Market up as Fletcher keeps risingThe New Zealand sharemarket moved up in early trading today, with Fletcher Building continuing to add to its gains of last week. Around 10.25am, the benchmark NZSX-50 index was up 8.66 points to 3359.8, after a 17.2-point rise...Source: New Zealand Herald - Business | 17 Aug 2008 | 10:38 pm Food and consumer groups get hedge smartCompanies are overhauling the way they buy and hedge commodities after being caught out by increases in the prices of raw materials that have squeezed industry margins and cut profitsSource: FT.com - US homepage | 17 Aug 2008 | 10:18 pm BNZ chairman steps downKerry McDonald is stepping down as a director and chairman of the Bank of New Zealand on November 7. John Waller, a non-executive director of the bank, had been appointed chairman designate and would take over when Mr McDonald...Source: New Zealand Herald - Business | 17 Aug 2008 | 10:11 pm Lower interest rates make homes more affordableHouses are now the most affordable they have been in 18 months. Falling interest rates have improved housing affordability in July to its best level since February 2007, the Wizard Home Loans Affordability report shows. The...Source: New Zealand Herald - Business | 17 Aug 2008 | 10:00 pm Mugabe defiance puts pressure on rivalRobert Mugabe defied pressure at a summit of southern African leaders to share power with his arch rival Morgan Tsvangirai, the opposition leader, who beat him in the country's last credible elections in MarchSource: FT.com - US homepage | 17 Aug 2008 | 9:54 pm Airport and Canadians settle takeover expenses stoushAn expenses claim following the unsuccessful Canadian bid for a stake in Auckland International Airport (AIA) has been settled, the parties say. Last month AIA said it had sought $7.6m for expenses related to the bid, while Canada...Source: New Zealand Herald - Business | 17 Aug 2008 | 9:46 pm MS and Goldman change approach to lendingMorgan Stanley and Goldman Sachs are is responding to the credit crisis with a system that uses the market's view of their own creditworthiness as a basis for lending decisions, according to people familiar with the matterSource: FT.com - US homepage | 17 Aug 2008 | 9:40 pm Strong showing lifts NZ dollar to two month high vs AussieThe New Zealand dollar has had a strong weekend, gaining on the major trading currencies and rising to its highest level in more than two months against the Australian dollar. By 8am today the kiwi was buying US70.58c from US69.75c...Source: New Zealand Herald - Business | 17 Aug 2008 | 9:00 pm Big boys' toys hit paydirt in US sandpitFormer South Island musterer Ed Mumm had a big idea sitting in a bulldozer shifting tonnes of dirt and rocks around his Colorado spread. Why not let others have a go and let them pay for the pleasure? So Dig This was born, a...Source: New Zealand Herald - Business | 17 Aug 2008 | 8:30 pm Pension TensionImagine your job is to invest the retirement money of 700,000 state workers. Hedge Fund Managers Not Earning Their Keep The Million Dollar Active vs Passive Wager Sebastian Mallaby Still Loves Hedge Funds Source: Portfolio.com: Top 5 | 17 Aug 2008 | 8:30 pm So long, scambustersIt's been only two years since the first domino fell in the Great Finance Company Meltdown, but Suzanne Edmonds reckons she's aged by a decade in that time. However, her own frustration and despair is trivial, she realises, compared...Source: New Zealand Herald - Business | 17 Aug 2008 | 8:00 pm Airport gains likely from retail, property movesAuckland International Airport reports its full-year profit this week with one analyst forecasting retail and property activity to be a feature of its first result since emerging clear of takeover attempts. Forsyth Barr analyst...Source: New Zealand Herald - Business | 17 Aug 2008 | 7:30 pm Signal gripes mount over new iPhoneThe ranks of unhappy iPhone users continued to swell at the weekend as Apple customers complained about problems maintaining a signal on the company's new 3G handsetSource: FT.com - US homepage | 17 Aug 2008 | 6:52 pm Guessing grows over US running matesBarack Obama, who has a strong financial advantage over his rival John McCain but only a narrow poll lead, is expected to make his vice-presidential choice by Thursday - ahead of the Democratic conventionSource: FT.com - US homepage | 17 Aug 2008 | 5:51 pm Questions and answers on hiring an appraiser (AP)AP - Questions and answers on how consumers can ensure they are getting an honest appraisal when buying or selling a home, refinancing an existing mortgage or taking out a home equity loan or line of credit:Source: Yahoo! News: Business | 17 Aug 2008 | 5:10 pm Hong Kong tycoonRichard Li steps out of his father's shadowSource: BBC News | Business | World Edition | 17 Aug 2008 | 3:51 pm
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