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SFO may launch Silverjet probe after complaintThe Serious Fraud Office (SFO) may launch an investigation into the collapse of business class-only airline Silverjet, after receiving a complaint.Source: Telegraph Business | 20 Aug 2008 | 1:20 pm Mortgage conditions 'set to worsen'Mortgage conditions 'set to worsen'Source: Telegraph Business | 20 Aug 2008 | 1:10 pm Bank of England's MPC signals interest rate cutThe Bank of England could cut interest rates in the coming months, the Monetary Policy Committee has signalled in its latest minutes.Source: Telegraph Business | 20 Aug 2008 | 12:54 pm Goldman Sachs (GS): Oil Headed Back Toward $150
The investment bank reiterated its year-end price forecast of $149 a barrel for U.S. crude oil, and said strong fundamentals were a more important factor than a strengthening dollar, according to Reuters. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Aug 2008 | 12:14 pm Mortgage volume fell 1.5% last week: MBAMortgage rates fell last week, yet that didn’t inspire more borrowers to apply for a mortgage, according to the Mortgage Bankers Association’s latest survey, released on Wednesday.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 12:11 pm H&T pawnbroker profits as consumers feel pinchH&T Group, the UK’s biggest pawnbroker, today announced a £1.3 million rise in profits for the first six months of 2008 from sales of unredeemed pledges and scrap.Source: Latest Business News from Times Online | 20 Aug 2008 | 12:09 pm H-P's earnings rise 11% on broad sales gainsHewlett-Packard Co. on Tuesday reported fiscal third-quarter profit rose 11% from a year ago as sales reached $28 billion and the technology giant recorded growth in all of its main business areas.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 12:06 pm MarketWatch First Take: Central bankers need to stop their wafflingHow’s this for clarity: the Bank of England says both a rate hike and a rate cut was considered at the last meeting.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 12:05 pm Futures rise on HP results, but Lehman slips (Reuters)
Source: Yahoo! News: Business | 20 Aug 2008 | 12:04 pm Futures rise on HP results, but Lehman slipsNEW YORK (Reuters) - Stock index futures rose on Wednesday as news of a solid quarterly profit and outlook from Hewlett-Packard , the world's largest computer maker, helped investors battle fears about the credit crisis.Source: Reuters: Business News | 20 Aug 2008 | 12:04 pm 10 cool tools for mobile phonesThese software programs help you do everything calculate your carbon footprint to remotely monitor your home.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 12:01 pm Mortgage lending slump to continue, says CMLHome owners may find it even more difficult to get a mortgage in the next few months, the Council of Mortgage Lenders has warned.Source: Telegraph Business | 20 Aug 2008 | 12:00 pm Indications: U.S. stock futures point higher after H-P resultsU.S. stock futures pointed to opening gains on Wednesday, as upbeat results from computer giant Hewlett-Packard helped to take the spotlight away from financial sector turbulence.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 11:57 am 24/7 Wall St. Most Overpaid CEO Of The Day: Novatel (NVTL) CEO Peter V. Leparulo
For the third quarter, Novatel expects a loss of $.03 to breakeven per share, on revenue of $80 million to $85 million. According to Reuters, "Analysts were expecting earnings of 18 cents a share, on revenue of $96.2 million, for the period." Last year, the company's CEO, Peter Leparulo, made $462,000 as a base. His contract calls for that to be the minimum again this year. His total compensation for 2007 was over $3.5 million. Since the company has lost $500 million in market cap in the last twelve months, Leparulo may be doing too well. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Aug 2008 | 11:56 am Prospects uncertain for Fannie, FreddieRead full story for latest details.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 11:56 am BP to test Georgia pipelineRead full story for latest details.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 11:47 am BJ's Wholesale profit up, raises full-year view (Reuters)Reuters - BJ's Wholesale Club Inc said on Wednesday quarterly profit rose as shoppers headed to its stores in search of low prices on food and fuel, and the No. 3 U.S. warehouse club operator raised its full-year profit forecast.Source: Yahoo! News: Business | 20 Aug 2008 | 11:41 am BJ's Wholesale profit up, raises full-year viewNEW YORK (Reuters) - BJ's Wholesale Club Inc said on Wednesday quarterly profit rose as shoppers headed to its stores in search of low prices on food and fuel, and the No. 3 U.S. warehouse club operator raised its full-year profit forecast.Source: Reuters: Business News | 20 Aug 2008 | 11:40 am Gas price decline nears 40 centsGasoline prices have fallen nearly 40 cents a gallon from their record highs after 34 straight days of declines, according to a daily survey released Wednesday.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 11:40 am Early-Bird Analyst Upgrades (DLTR, HTX, KLAC, ORLY, TSRA, AUY)These are some of the early analyst upgrades or positive calls we are seeing this Wednesday in early pre-market hours:
JON C. OGG Source: 24/7 Wall St. | 20 Aug 2008 | 11:39 am Visit London launches first global ad campaign to build on Britain's Olympic successVisit London is to launch its biggest and first ever global advertising campaign on Saturday in a bid to capitalise on the success of Britain's Olympic athletes and drum up interest in the 2012 Games.Source: Telegraph Business | 20 Aug 2008 | 11:36 am Lehman couldn't secure Korean Funds: report(Reuters) - Lehman Brothers Chief Executive Dick Fuld nearly struck a deal to raise almost $5 billion from South Korean wealth funds and institutions but the pact disintegrated, the New York Post said citing sources familiar with the matter.Source: Reuters: Business News | 20 Aug 2008 | 11:34 am Early-Bird Analyst Downgrades (AAP, ALNY, COMV, DISH, DPS, HAS, NATI, NVTL, STEL)These are some of the early analyst downgrades or negative calls we are seeing this Wednesday in early pre-market hours:
JON C. OGG Source: 24/7 Wall St. | 20 Aug 2008 | 11:32 am Europe Markets: Stocks in Europe edge higher, led by oil producers, minersEuropean shares edged higher Wednesday from two-week lows, as miners and oil producers advanced on the back of an uptick in crude-oil futures and investors also dipped a toe back into the battered financial sector.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 11:32 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 11:31 am Asda slashes pay-as-you-go mobile phone tariffAsda is cutting the cost of its mobile phone charges and claims that it will be the cheapest pay-as-you-go operator in the UK as traditional rivals, including Vodafone, are raising their prices.Source: Latest Business News from Times Online | 20 Aug 2008 | 11:30 am The Fannie and Freddie TriggerWhat will it take for the government to step in finally and bail out Fannie Mae and Freddie Mac? "I couldn't find anyone who knew why, but all the traders I talked to suggested it had a certain ‘The Dukes know something!' feel to it." When Bill Met Freddie Angelo's Fannie Pack The Myth of the Walk Aways Source: Portfolio.com: Top 5 | 20 Aug 2008 | 11:30 am Discount supermarket sales riseDiscount supermarkets such as Aldi and Lidl see sales grow as cost-conscious UK consumers look to save cash, figures suggest.Source: BBC News | Business | World Edition | 20 Aug 2008 | 11:21 am Currencies: Dollar rebounds, markets eye global weaknessWorries about growth outside the United States allowed the dollar to rebound Wednesday, sending the euro back toward six-month lows against the greenback and lifting the U.S. unit against most major counterparts.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 11:20 am Stocks ready to reboundStock futures rose early Wednesday as solid earnings from Hewlett-Packard overshadowed financial sector woes.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 11:19 am Microsoft Expanding Linux Efforts With Novell (MSFT, NOVL)
This will focus on enhanced programs from Novell to provide tools, support, training and resources for customers seeking an enterprise-class Linux platform, particularly the interoperability solution between Microsoft Windows Server and SUSE Linux Enterprise Server from Novell. As part of the arrangement, Microsoft's will spend up to $100 million in certificates so customers can get expanded support from Novell. Microsoft and Novell will solicit customer input and identify to organizations running mixed-source environments. This relationship began in November 2006 as a five-year partnership where Microsoft purchased $240 million of Novell certificates to sell to customers. According to this data, Novell invoiced more than $157 million in certificate revenues within 18 months. Some of the key customers that are said to seamlessly run both Windows Server and SUSE Linux Enterprise Server include Wal-Mart Stores Inc, HSBC Holdings, Renault, Southwest Airlines Co, BMW and many other leading companies around the world. Novell shares closed at $5.74 yesterday and we have not seen pre-market indications as of yet. As far as the overall size, Novell's fiscal Oct-2007 revenues were $932 million and Oct-2006 fiscal revenues were $967 million. Analysts are looking for $958 million in fiscal 2008 revenues and $998.8 million in 2009 revenues.
JON C. OGG Source: 24/7 Wall St. | 20 Aug 2008 | 11:16 am iPods reportedly overheatingRead full story for latest details.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 11:14 am EBay cuts fee for certain listingsSource: Business and financial news - CNNMoney.com | 20 Aug 2008 | 11:09 am Mortgage lending slump continuesThe slump in mortgage lending continued in July, according to the latest figures from the Council of Mortgage Lenders.Source: BBC News | Business | World Edition | 20 Aug 2008 | 11:07 am Dovish stance in Bank of England minutes hints at rate cuts by winterStrange as it may seem, the minutes published by the Bank of England are actually relatively dovish, doing little to dispell the expectation that the Monetary Policy Committee will start cutting interest rates by the winter.Source: Telegraph Business | 20 Aug 2008 | 11:04 am Tesco slammed over 'unfair' food advertsTesco has been rapped by the Advertising Standards Authority (ASA) for promotions that used an "unfair" selection of goods to claim that a trolley of shopping at its supermarkets was significantly cheaper than rivals, Asda and Wm Morrison.Source: Latest Business News from Times Online | 20 Aug 2008 | 11:02 am US and Poland sign missile shield dealThe United States and Poland signed a deal to station elements of a US missile defence shield in Poland– in a move finalised after Moscow's intervention in Georgia – as Syrian president Bashar al-Assad visited Moscow seeking to acquire Russian cruise missilesSource: FT.com - US homepage | 20 Aug 2008 | 10:59 am China shares up from 20-month lowChina's main share index rebounds from a 20-month low on talk that Beijing will introduce an economic rescue plan.Source: BBC News | Business | World Edition | 20 Aug 2008 | 10:43 am GM (GM): More Incentives Mean More Job Cuts
GM's US sales are running about 20% behind the pace of last year. The company cannot survive that much longer, so priming the customer pump may be its only alternative. GM tried to swear off incentives, but, like a old drunk, it returned to the bottle. If GM has been losing $2,000 per vehicle sold in the US, that number may move up to $4,000. Suicidal Math 101. Offering warranties on used cars works if almost all of the vehicles continue to run OK. Some actuary in the basement of the GM headquarters made the calculation that losses from the program will be manageable. That person probably rides a bicycle to work. There are few substitutes for experience. GM has decided to see if it can survive a great deal of bleeding now while it gambles that its near-term future can be made better by an improving economy and a product line-up of more fuel-efficient cars.The other factor that the firm will need to weigh is its cost base, which is still too high. For each new car sold with $3,000 cash back, some poor GM soul will probably have to be let go. The sales message from this year is that fewer and fewer people want to own a GM product. Turning that river may be impossible. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Aug 2008 | 10:41 am Customers warned after iPods catch fire in JapanConsumers were warned about the possibility of their iPods overheating yesterday after Japanese authorities reported three incidents of the devices catching fire.Source: Latest Business News from Times Online | 20 Aug 2008 | 10:40 am Saving Fannie Mae (FNM) And Freddie Mac (FRE) Shareholderss
The most recent estimate of the balance sheet and earnings problems at the two agencies is that they will have to raise $100 billion. The quasi-governmental operations have $223 billion in bonds maturing on September 30. Fannie Mae and Freddie Mac are not without assets. According to Bloomberg, "Freddie had $70 billion of cash and non-mortgage investments on June 30 and $470 billion of agency mortgage securities that it could pledge for secured borrowing." The Treasury could put new capital into the two companies by buying new preferred shares, which would destroy the value of common shares entirely. While the government does not feel any obligation to help the stockholders of the two entities, it might handle a new financing in a way that would not completely wipe out the poor souls who have their life savings in one or both of the stocks. Treasury could take the asset bases of the two companies and make loans with liens on those. Pessimists could make the argument that potential liabilities overwhelm those assets, but that depends to a large extent on the direction of the mortgage market. The federal government could always call on the liens if that becomes necessary. The government cannot save the common shareholders of Freddie Mac and Fannie Mae, but it could structure a financing which gives them some hope that a modest recovery in housing would eventually place some value to their investments. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Aug 2008 | 10:25 am Arcelor tightens hold on iron oreArcelor Mittal, the world's largest steelmaker, buys Lonmin's Brazilian iron ore assets for $810m.Source: BBC News | Business | World Edition | 20 Aug 2008 | 9:58 am Stocks to Watch: Stocks in focus for WednesdayAmong the companies whose shares are expected to see active trading in Wednesday's session are Salesforce.com, JDSU, Synopsys, and Ross Stores.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 9:57 am HP's (HPQ) Next Quarter Will Not Be Pretty
Net revenue rose 10% to $28 billion. Operating profit was up 20% to $2.5 billion. But, some of HP's core businesses barely grew at all. There was a time when the key engine of HP's earnings was its printer operations. In the last quarter, they grew only 3% to $7 billion. The company's server business was up only 5% to $4.7 billion. The printer and server businesses are at the core of HP's offerings to enterprises. While PC sales at HP did well, much of that revenue come from individual consumers. If the critical hardware segments of HP's overall revenue are no longer doing well, a downturn in business spending could actually move their quarterly revenue growth into negative territory. With the economy as it is, that could happen within a quarter or two. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Aug 2008 | 9:56 am China to take measures to stop market slideSpeculation that the Chinese Communist Party will step in to halt the relentless slide of the country's stock markets lifted shares in Shanghai by nearly 8pc.Source: Telegraph Business | 20 Aug 2008 | 9:55 am Lehman couldn't secure Korean Funds: report (Reuters)
Source: Yahoo! News: Business | 20 Aug 2008 | 9:54 am BAA told to end UK monopoly by selling Gatwick and StanstedBAA has been told that it should sell two of its London airports by the Competition Commission.Source: Telegraph Business | 20 Aug 2008 | 9:48 am Motorola unveils low-end phones for music and WebSINGAPORE (Reuters) - Motorola Inc, the world's third-largest handset maker, unveiled two new low-end phones on Wednesday that allow users to listen to songs and surf the Web.Source: Reuters: Business News | 20 Aug 2008 | 9:47 am Oil edges up, all eyes on supply reportRead full story for latest details.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 9:43 am Is Rupert Murdoch Overpaid? Of Course, But Not Really (NWS)
Given that shares of the stock is off nearly 35% year to date, investors might wonder whether Murdoch is overpaid at that price. Surely they could have gone and last 65 cents on the dollar on their own. And they're right to wonder about that and, if you think Rupert Murdoch is overpaid, you'll get no argument from me. But let's face it: we live in an era of unprecedentedly high executive compensation and, while there are some champions of good corporate governance out there, overpay is the norm. So look at it this way: Murdoch controls about 60% of the company's stock, making it by far the largest chunk of his net worth and with that net worth recently quoted at $8.3 billion by Forbes, his salary is basically immaterial. But, given what a large chunk of the stock Murdoch owns, he can pretty much pay himself whatever he wants: by that standard, it's impressive that he's taken a pay cut. No one can question the influence that Murdoch has over the company -- consider all the hoopla over the company's acquisition of Dow Jones. Nor can Murdoch's long-term track record of creating shareholder value be challenged. Is Murdoch overpaid? You bet. But with all the really overpaid, poorly-performing executives who have no real stake in the long-term future of their companies out there, he's not one I would bother complaining about. Source: 24/7 Wall St. | 20 Aug 2008 | 9:41 am Falling home prices: The silver liningHome prices continue to tumble across the country, making homes more affordable in most U.S. cities, according to a new report released Tuesday.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 9:38 am China's Economic Stimulus Package Can't Be Real
NBC recently made the point that China's economy can no longer be driven hard by exports. They have become too expensive as labor costs and commodities have risen. Some industries are actually cutting jobs. Now there is mention of the idea that China may unwrap a program of as much as $58 billion to help capital markets and real estate. According to Bloomberg, "Since July, Chinese policy makers have put extra emphasis on sustaining growth rather than cooling inflation in the world's fourth-biggest economy as the outlook for exports dims." The Chinese GDP has been growing at a rate of over 10% for the better part of a decade. The economy in the world's most populated country is not geared to handle any significant slowdown. The premise on which money supply and the subsidized costs of key products like gasoline and diesel is based assumes a type of "hyper-growth" which is not a part of any other large nation's financial dynamics. China's improving economy had its foundation in exports, but its new middle class are powerful consumers in their own right. They help drive production in China and imports which keep the nation's balance of trade with the West in a "reasonable" range. The scales are delicate, but so far the financial peace between China, the US, and EU has held. If China's growth rate is hitting a major deceleration point and prices continue to rise, inflation will move quickly from Asia to the West. Sourcing goods which are inexpensive without China is impossible. A damaged Chinese economic machine curtails exports from America. A breakdown in the system immediately hits the US GDP. China was always too good to be true. That has been a minority opinion just as it was when a few economists in the 1970s saw trouble coming in Japan.. It took two decades for Japan to get all the way back on its feet. It might be argued that the process is not over. If China were plunged into an economic dark age it would pull the rest of the world in the same direction. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Aug 2008 | 9:38 am Asia Markets: Shanghai surge sparks region's reboundShanghai stocks end sharply higher Wednesday on speculation that the Chinese government is considering a fiscal stimulus package, boosting shares in Hong Kong and paring losses in some other regional markets.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 9:37 am BAA 'should sell three airports'The Competition Commission says BAA may have to sell three of its seven UK airports - two in London and one in Scotland.Source: BBC News | Business | World Edition | 20 Aug 2008 | 9:36 am Three-way split again on UK ratesBank of England policymakers were again split three ways when they decided to hold interest rates at 5% earlier this month.Source: BBC News | Business | World Edition | 20 Aug 2008 | 9:34 am Business newspaper roundup: August 20A glance at the leading stories from the financial pages of today's newspapersSource: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 9:32 am Business newspaper roundup: August 20A glance at the leading stories from the financial pages of today's newspapersSource: Telegraph Business | 20 Aug 2008 | 9:32 am Apple admits iPod Nano 'overheat'Apple says that a battery fault meant that a small number of its first generation iPod Nanos could overheat.Source: BBC News | Business | World Edition | 20 Aug 2008 | 9:22 am Bank of England weighed rate cut, hike at Aug. meetingBank of England policymakers earlier this month weighed both a rate hike and a rate cut before a majority decided to stand pat and leave official interest rates at 5%.Source: MarketWatch.com - Top Stories | 20 Aug 2008 | 9:22 am eBay to slash charges on fixed-price productsOnline autioneer eBay plans to slash its charges in a bid to lure more big ticket retailers to its site, pitting it alongside rivals such as Amazon.com.Source: Telegraph Business | 20 Aug 2008 | 9:05 am BAA must sell 3 airports (Reuters)
Source: Yahoo! News: Business | 20 Aug 2008 | 9:00 am Crown buyout 'good for business'The buyout of Crown Paints heralds an exciting time for everyone in the Lancashire-based business, its new chairman says.Source: BBC News | Business | World Edition | 20 Aug 2008 | 8:51 am Faking the good life to get harderWe made it through the bursting of the Internet bubble and now the bursting of the real estate bubble. Next we may be approaching the end of the most worrisome bubble of all: the standard-of-living bubble.Source: Business and financial news - CNNMoney.com | 20 Aug 2008 | 8:51 am Monthly mortgage rise undone by 27% year fallGross mortgage lending rebounded slightly in July, rising by 5 per cent compared with June, although total home loan lending tumbled by 27 per cent on last year.Source: Latest Business News from Times Online | 20 Aug 2008 | 8:50 am A/S Dampskibsselskabet TORM - Half Year Financial ReportHELLERUP, Denmark, August 20 /PRNewswire-FirstCall/ -- "The result for the first six months of the year is the best in the history of TORM when excluding the sale ofSource: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 8:42 am Oil climbs to $115 a barrel on lower dollarSINGAPORE (Reuters) - Oil prices extended gains to $115 a barrel on Wednesday, after a lower U.S. dollar rekindled buying in oil and other commodities.Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 8:38 am Interest rate setters split for second month in a rowThe Bank of England’s rate-setting Monetary Policy Committee (MPC) split three ways this month, for a second month in a row, with one member again voting for an immediate rise in interest rates.Source: Latest Business News from Times Online | 20 Aug 2008 | 8:30 am Resource stocks bolster FTSE 100Resource stocks helped London equities bounce back on Wednesday, after the previous session's sharp fall drew in bargain hunters. The FTSE 100 rose 0.7 per cent to 5,357.2, recovering 38 of the 130 points...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 8:22 am Murdoch's pay falls to $27.5 million in 2008(Reuters) - News Corp Chief Executive Rupert Murdoch's total compensation for 2008 fell 14 percent to about $27.5 million, the company said in a regulatory filing.Source: Reuters: Business News | 20 Aug 2008 | 8:19 am Murdoch's pay falls to $27.5 million in 2008(Reuters) - News Corp Chief Executive Rupert Murdoch's total compensation for 2008 fell 14 percent to about $27.5 million, the company said in a regulatory filing.Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 8:19 am China shares surge 7.63 pct on policy support hopesChinese share prices surged to close 7.63 percent higher on Wednesday amid renewed hopes that Beijing will soon act to support the ailing stock market, dealers said. The key...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 8:03 am India airport strike hits flightsMany domestic airline flights are cancelled in India after airport workers go on strike in protest against the government's economic policies.Source: BBC News | Business | World Edition | 20 Aug 2008 | 8:02 am Mittal snaps up iron-ore miner: Roundup for August 20ArcelorMittal, the worlds biggest steelmaker, is to buy the Brazilian iron-ore division of London Mining for $810m (435m).Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 8:01 am Macquarie fund to sell airport stakesSYDNEY, Aug 20 Macquarie Airports (MAP), a fund managed by Australian investment bank Macquarie Group Ltd, posted a first-half loss but said it would reduce its stakes in two airports to cut debt, sending...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:49 am Mecom faces 'challenging' marketMecom on Wednesday said that "more challenging economic conditions" had emerged during the first half of 2008, as the continental European newspaper group reported a 3 per cent fall in like-for-like operating...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:34 am Sky-high oil prices destroying airlines' profits: IATA chiefA "perfect storm" of soaring fuel costs and slipping demand could cost global airlines 6.1 billion US dollars this year, the International Air Transport Association (IATA) said Wednesday.Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 7:32 am Olympic thirst boosts China beerChinese brewer Tsingtao sees half-year profits up 42% from publicity gained by sponsoring the 2008 Beijing Olympics.Source: BBC News | Business | World Edition | 20 Aug 2008 | 7:31 am Investors slam shares of Babcock satellitesInvestors punished shares of the satellite groups of Babcock & Brown on Wednesday, the day after the parent company's decision to halt trading in its shares ahead of its full-year results due on Thursday...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:28 am Regulator calls for BAA airport salesA damning report by the Competition Commission has called on BAA to sell two of its three London airports and one in Scotland in what will be a heavy blow to the airport operator's owner Ferrovial of SpainSource: FT.com - US homepage | 20 Aug 2008 | 7:25 am LandCap JV to buy Wachovia loans: report(Reuters) - A joint venture created by LandCap Partners is buying $40 million of troubled land and construction loans from Wachovia Corp The Wall Street Journal said.Source: Reuters: Business News | 20 Aug 2008 | 7:22 am Tower Semiconductor Reports Second Quarter 2008 Financial ResultsAchieves Second Highest Quarterly Revenue in the Company's History of $58.1 Million Signed a Memorandum of Understanding to Reduce Debt by $250 Million and Significantly Improve...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 7:21 am China to broaden currency exchange options in Shanghai, BeijingChina's foreign exchange regulator said Wednesday it will allow non-financial institutions in Beijing and Shanghai to offer currency exchange services to individuals. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 7:18 am BAA told to sell two London airportsLONDON (Reuters) - Airports operator BAA, owned by Spain's Ferrovial , received a tougher-than-expected ruling from Britain's competition regulator on Wednesday, which said it should sell...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 7:18 am Tower Semiconductor Signs Memorandum of Understanding to Significantly Improve Its Balance Sheet and Financial PositionWill Reduce Debt by $250 Million, Increase Shareholders' Equity by $250 Million and Improve Future Cash Flow and Financial Results MIGDAL HAEMEK, Israel, August 20...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 7:13 am Venezuela seizes Mexican-owned cement plantsMaking good on Hugo Chavez's threat, and inviting more strain on international relations, government troops move in on three Cemex facilities.Venezuelan officials early Tuesday seized control of the Venezuelan operations of Mexican building giant Cemex after negotiators failed to come to terms on a deal to nationalize the company's assets. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Fears bloom on rumors of pending bombshell in financialsAll the talk in the credit markets this week is that another big bomb is about to go off in the financial system.Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Jump in inflation puts Federal Reserve on the spotThe producer price index surges 1.2% in July, pressuring the central bank to lift interest rates.Despite declining energy costs, wholesale prices soared in July, giving the economy the worst 12 months of inflation in almost three decades and increasing pressure on the Federal Reserve to raise interest rates. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Federal foreclosure-purchase program may fall flat in CaliforniaThe $4-billion plan may hurt homeowners in the state who are trying to sell. Several county governments are unsure whether they have the staff to make use of the funding.To Congress, it looked like a way to both ease blight and provide affordable housing: give local governments $4 billion to buy, repair and resell homes lost to foreclosure. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am On Rodeo Drive, the economy's boomingGas, food and mortgage costs? Not a worry for these shoppers.Steve Thorne, 54, watched approvingly as his girlfriend tried on a pair of boots at the Jimmy Choo boutique on Rodeo Drive last week. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am James Halstead ordered to pay $22 million in investment schemeThe Santa Ana man blew investors' money on a lavish lifestyle, a federal judge says. He also faces punitive damages.A federal judge has socked James R. Halstead with a $22-million summary judgment, ruling that the Santa Ana insurance salesman solicited the money for sophisticated investments but instead blew it on fast cars, a mistress and Las Vegas real estate. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Sport Chalet's founder sees dream come trueNorbert Olberz has sought for decades to develop a commercial hub in La Cañada Flintridge that would contain his company's headquarters and a flagship store.Decades have passed since Sport Chalet Inc. founder Norbert Olberz, 83, began pressing to develop a shopping plaza in the heart of La Cañada Flintridge. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Hewlett-Packard's profit rises 14% on strong computer salesThe company's revenue increases 10% from the year-earlier quarter.Hewlett-Packard Co. rose above the economic gloom Tuesday and reported a 14% rise in quarterly profit thanks to strong computer sales. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Talent agency International Creative Management to settle TV writers lawsuitThe writers had alleged they were victims of age discrimination.Talent agency International Creative Management Inc. has agreed to settle a 2002 lawsuit brought by more than 150 television writers who alleged they were victims of age discrimination. Source: L.A. Times - Business | 20 Aug 2008 | 7:00 am Sport Chalet's founder sees dream come trueNorbert Olberz has sought for decades to develop a commercial hub in La Caada Flintridge that would contain his company's headquarters and a flagship store. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:00 am James Halstead ordered to pay $22 million in investment schemeThe Santa Ana man blew investors' money on a lavish lifestyle, a federal judge says. He also faces punitive damages. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:00 am Home Depot's profit declines 24%Home Depot Inc. said Tuesday that its second-quarter profit sank 24% and reiterated its downbeat outlook for the year amid a weak housing market that shows no signs of recovery.Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:00 am Hewlett-Packard's profit rises 14% on strong computer salesThe company's revenue increases 10% from the year-earlier quarter. Hewlett-Packard Co. rose above the economic...Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Aug 2008 | 7:00 am BAA under pressure to sell Gatwick and StanstedBritain’s Competition Commission said today that it may force BAA to sell three of its UK airports, including two of its sites in London.Source: Latest Business News from Times Online | 20 Aug 2008 | 6:27 am China's vice premier urges demand boost: state mediaChina's vice premier, a rising political star, has said the country has no other choice but to boost domestic demand in order to sustain growth amid global economic weakness, state media...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Aug 2008 | 6:11 am EBay lowering fixed-price sellers' listing feesSAN FRANCISCO (Reuters) - EBay Inc is cutting the fees U.S. sellers on its site pay for fixed-price items, in one of the company's boldest moves this year to boost merchandise for sale, lure new buyers and take on competitors.Source: Reuters: Business News | 20 Aug 2008 | 6:10 am LandCap JV to buy Wachovia loans: report (Reuters)
Source: Yahoo! News: Business | 20 Aug 2008 | 5:26 am NZ currency: Dollar bounces against sagging greenbackThe New Zealand dollar held gains today as a tug-of-war developed in the US dollar market between believers in its recent rally and sceptics. The kiwi had fallen to US70.40c on Tuesday then bounced back overnight to peak around...Source: New Zealand Herald - Business | 20 Aug 2008 | 5:23 am Auckland-Tauranga port merger back in playThe power plays in the port sector took another twist today with Ports of Auckland revealing it has approached Port of Tauranga about buying its container business. Port of Tauranga fired off a press statement in response, saying...Source: New Zealand Herald - Business | 20 Aug 2008 | 4:42 am China shares surge 5.89 pct by midday (AFP)
Source: Yahoo! News: Business | 20 Aug 2008 | 4:02 am Challenging year for NZ exporters - Dun & BradstreetNew Zealand exporters are facing a challenging year as global economic conditions deteriorate, says credit reporting agency Dun & Bradstreet (D&B). The impact of global inflationary pressures, declining US consumer demand and the...Source: New Zealand Herald - Business | 20 Aug 2008 | 3:00 am PGG Wrightson/Silver Fern bid may benefit farmers - reportSilver Fern Farms says that an independent adviser's report has identified "significant positive benefits" for its shareholders in the proposed takeover by rural service company PGG Wrightson. Shareholders will vote on September...Source: New Zealand Herald - Business | 20 Aug 2008 | 2:40 am Domino's profit up on 'strong' salesUnlike its beleaguered New Zealand counterpart Pizza Hut, Domino's is apparently thriving in the pizza delivery market. Australia's Domino's Pizza Enterprises Ltd today announced it has boosted annual profit by 29.6 per cent after...Source: New Zealand Herald - Business | 20 Aug 2008 | 2:30 am Carter Holt worker awarded $40,000 for unjust sackingA long serving Carter Holt Harvey (CHH) employee has been awarded nearly $40,000 after he was found to have been unjustifiably sacked. Tauranga sales representative and account manager Alan Stevens, 64, had been employed by CHH...Source: New Zealand Herald - Business | 20 Aug 2008 | 1:30 am Freddie pays highest risk premiumThe severity of the US mortgage crisis was underscored as Freddie Mac, one of two government-sponsored enterprises that underpin the US housing market, paid its highest risk premium to sell a $3bn (£1.6bn), five-year debt issue to investorsSource: FT.com - US homepage | 20 Aug 2008 | 1:26 am After The Close - TuesdayANALOG DEVICES (ADI), which makes chips for cell phones and other devices, said its Q3 EPS rose 19% to 44 cents ex items, missing views by a...Source: Investor's Business Daily: BUSINESS | 20 Aug 2008 | 1:04 am Business Briefs - TuesdayCell phone sales continue to fall. U.S. consumers bought 28 mil cell phones in Q2, down 13% from the year-ago period, according to a report by...Source: Investor's Business Daily: BUSINESS | 20 Aug 2008 | 1:04 am Trends & Innovations - TuesdayMore women having no childrenSource: Investor's Business Daily: BUSINESS | 20 Aug 2008 | 1:04 am Acquisition Helps Ready Internet Security Software Firm For Web 2.0Most people know Websense as the forbidding white page that pops up when you try to visit a Web site your employer doesn't care for. But that...Source: Investor's Business Daily: BUSINESS | 20 Aug 2008 | 1:04 am In Brief - TuesdayCummins (CMI), a maker of diesel and natural gas engines, fell 3.2% to 66.62 after an analyst said Cummins' decision to add a technology to cut...Source: Investor's Business Daily: BUSINESS | 20 Aug 2008 | 1:04 am Sky TV profits up 25pc - $97.7m for the yearSky TV has posted a 25.5 per cent increase in full year net profit to $97.7 million, with viewership, subscriber numbers and average revenue per subscriber rising. The result for the year to the end of June compared with $77.9m...Source: New Zealand Herald - Business | 20 Aug 2008 | 12:15 am Tourism Holdings profits slightly up, but tough times aheadTourism Holdings has reported full year net profit up 7 per cent to $14.3 million, with a strong performance from its Australian motorhome operation. That was offset by a disappointing result from vehicle builder Ci Munro during...Source: New Zealand Herald - Business | 20 Aug 2008 | 12:00 am Alliance & Leicester chief David Bennett in line for bonusThe chief executive of Alliance & Leicester (A&L) will receive a bonus of up to £750,000 if he remains with the company after it is taken over by Santander, according to documents released to shareholders yesterday.Source: Latest Business News from Times Online | 19 Aug 2008 | 11:00 pm Speedo swimwear is the real star of the GamesOf all the possible humiliations, this was potentially the worst blow. Nike has been forced to allow its Olympic swimmers to compete in Speedo swimsuits, effectively conceding that the LZR, the body-hugging suit made by Nike's rival, gives swimmers an advantage.Source: Latest Business News from Times Online | 19 Aug 2008 | 11:00 pm Mike Turner does the business at BAE SystemsAll political lives end in failure, said Enoch Powell. And it is not much better for chief executives. Many suffer a sudden and painful conclusion to their tenure, particularly when times are tough. Few get to write the last chapter of their careers.Source: Latest Business News from Times Online | 19 Aug 2008 | 11:00 pm Intel bullish over Atom processor for 'netbooks'Intel has offered a bullish forecast for its new Atom processor for low-end "netbooks" and other mobile computing devices, although executives conceded that the product could eat into sales of more profitable notebook chipsSource: FT.com - US homepage | 19 Aug 2008 | 11:00 pm NZ Shares: Telecom at 15-year lowTelecom shares slipped to a fresh 15-year low early today, as the New Zealand sharemarket dropped in the wake of falls in US stocks. Telecom was down 4c to 318 early, while Fletcher Building dropped 5c to 675 after its 30c decline...Source: New Zealand Herald - Business | 19 Aug 2008 | 10:38 pm Pitt Says Raising Capital for Fannie, Freddie Is `In Jeopardy'Source: Bloomberg - All Podcasts | 19 Aug 2008 | 10:33 pm Barclays sees potential in USBarclays would consider buying a US wealth management company but is 'highly unlikely' to bid for an investment bank, even with the depressed share prices of many Wall Street firms, Bob Diamond, the bank's president, said on TuesdaySource: FT.com - US homepage | 19 Aug 2008 | 10:32 pm Coronado of Barclays Says a GSE Intervention `Likely'Source: Bloomberg - All Podcasts | 19 Aug 2008 | 10:31 pm 8 Stocks With Earnings Momentum (Stock Screen)We turned up eight stocks with earnings momentum that shows no sign of slowing down.Source: SmartMoney.com | 19 Aug 2008 | 10:28 pm Laptop sales boost HP profitsStrong laptop sales helped push Hewlett-Packard to a better-than-expected performance in the third quarter in spite of a tougher economic environmentSource: FT.com - US homepage | 19 Aug 2008 | 10:15 pm 8 Stocks for Free Cash Flow Fans (Stock Screen)Modest valuations and ample cash flows make these eight stocks attractive.Source: SmartMoney.com | 19 Aug 2008 | 10:03 pm Troubled times prompt Geneva Finance loan reviewGeneva Finance says it is carrying out a full review of its loan portfolio in response to continuing deterioration in market conditions. The finance company said today that its particular concern related to the increased costs...Source: New Zealand Herald - Business | 19 Aug 2008 | 10:00 pm 2Q profit reports from retailers show more strain (AP)
Source: Yahoo! News: Business | 19 Aug 2008 | 9:53 pm Financials, Housing ETFs Dip Once Again (Daily ETF Wrap-Up)Stocks post second straight down day on dismal housing and economic news.Source: SmartMoney.com | 19 Aug 2008 | 9:42 pm A Crash Course in Credit Cards for College Students (Deal of the Day)How students can avoid the free T-shirt trap and mountains of debt post-graduation.Source: SmartMoney.com | 19 Aug 2008 | 9:18 pm Delta Global Starts Shipping Index, Claymore May Start ETFSource: Bloomberg - All Podcasts | 19 Aug 2008 | 9:00 pm Donald Trump-Ed McMahon deal not a done dealSource: L.A. Times - Business | 19 Aug 2008 | 8:52 pm Questions to Ask a Prospective Financial Planner (Ticked Off)A few simple questions and web searches can reveal a lot about a financial planner.Source: SmartMoney.com | 19 Aug 2008 | 8:30 pm Stocks Decline on DataEconomic reports portraying high core inflation and a weak housing market left the major indexes lower.Source: SmartMoney.com | 19 Aug 2008 | 8:15 pm Investors Should Hold Off on Investing in Russia (Common Sense)Until Russia realizes its oil is more potent than its bullets, I'd stay away.Source: SmartMoney.com | 19 Aug 2008 | 7:26 pm Russia 'makes 1 bln dlrs' on Fannie Mae, Freddie Mac bonds: reports (AFP)
Source: Yahoo! News: Business | 19 Aug 2008 | 6:59 pm China's Gold-Medal Growth Holds More Promise Than Threat (The Economy)The Olympic host's economy will one day eclipse America's. The world will be better for it.Source: SmartMoney.com | 19 Aug 2008 | 6:55 pm Manager Takes Over Financials Fund at Tough Time (Fund Insight)A fund manager finds it easier to run across the Sahara than pick financial stocks.Source: SmartMoney.com | 19 Aug 2008 | 6:18 pm ARPS Scandal: Banks Must Rebuild Investors' Trust (Common Sense)New details are emerging on the ARPS scandal. The truth is uglier than I suspected.Source: SmartMoney.com | 19 Aug 2008 | 6:15 pm DIY books turn a page in publishingThe novel is not dead. Nor is any other kind of book. Self-publishing technology has empowered wanna-be writers -- no matter how strange their pitch. Cash Peters checks out the DIY crowd at a book expo in LA.Source: Marketplace | 19 Aug 2008 | 5:18 pm JPMorgan Says Lehman May Report $4 Billion WritedownSource: Bloomberg - All Podcasts | 19 Aug 2008 | 5:14 pm Author Ron Suskind Says U.S. Has Lost `Moral Energy'Source: Bloomberg - All Podcasts | 19 Aug 2008 | 5:02 pm Making that pink slip sound betterThe forcefully unemployed now have a new way to spin their misfortune into something admirable. Just say you're a freelancer. Commentator -- and freelance writer -- Megan Hustad weighs in on the trend.Source: Marketplace | 19 Aug 2008 | 4:58 pm GM to make U-turn over sales incentivesGeneral Motors has backed away from a two-year drive to wean itself off incentives, highlighting the increasing desperation of US carmakers to counter the steep downturn in demandSource: FT.com - US homepage | 19 Aug 2008 | 4:57 pm College Board studying 8th grade PSATYou're never too young to get an ulcer. The College Board is planning to roll out a new college assessment exam for eighth graders in 2010. Marketplace's Janet Babin reports.Source: Marketplace | 19 Aug 2008 | 4:52 pm Vioxx trial was marketing ployA Merck & Co. study of Vioxx that recruited 600 doctors to prescribe the drug was actually a marketing strategy, researchers say. Host Kai Ryssdal looks at how widespread the practice is.Source: Marketplace | 19 Aug 2008 | 4:51 pm NATO and Russia in war of wordsNATO wagged a finger at Russia today, warning that the invasion of Georgia was jeopardizing Russia's relationship with NATO. Russia's response was stern. From London, Steven Beard has the story.Source: Marketplace | 19 Aug 2008 | 4:50 pm Is Lehman's very survival in jeopardy?JP Morgan Securities predicts investment bank Lehman Brothers will take a huge hit in the third quarter from bad mortgage investments. Nancy Marshall Genzer reports on speculation Lehman might not survive.Source: Marketplace | 19 Aug 2008 | 4:48 pm Obama hits back after one attack too manyDisplaying a combativeness that many Democrats feared was lacking, Barack Obama is portraying his Republican presidential rival, John McCain, as a prisoner of the "Republican attack machine" who would represent a third term of George W. BushSource: FT.com - US homepage | 19 Aug 2008 | 4:48 pm July numbers raise inflation concernsHousing starts hit a 17-year low in July and a wholesale price report rose to a 27-year high, monthly statistics say. John Dimsdale puts the numbers in perspective and asks -- What's next?Source: Marketplace | 19 Aug 2008 | 4:40 pm NBC's Online SnubThe Beijing Olympics were supposed to be a boon to NBC Universal. After shelling out over $1 billion in broadcast rights and production costs, the company announced with much fanfare that it would air an unprecedented 3,600 hours of Games coverage this summer, utilizing eight NBCU platforms including its cable networks, the broadcast channel, and a special website, NBCOlympics.com.But it's been on that website, where videos of lesser-known sports like weightlifting, wrestling, and equestrian events are streamed, that the media giant has run into some technical difficulties. The video player, which is required to do anything more than view pictures or read news stories, is not available for installation on computers with firewalls. Even if you can access the videos, many clips are streamed without accompanying commentary. Viewers are left staring at an event apparatus, often before an athlete appears, with no contextual information. The most popular sports aren't streamed on the Web until after they air on NBC, in order to boost the network's prime-time ratings. And the video quality is often poor, with grainy resolution or jerky images. Most embarrassing, NBC's competitor site Yahoo Sports, which has its own dedicated Olympics website, has announced that, for the first three days of the Olympic Games, its Olympics site generated over 8 million unique users, 1.3 million more than NBC's site received, according to comScore Media Metrix, a company that measures internet use. To be fair, those numbers only reflect online viewers for the first three days of the Olympics. Numbers for the second, full week of the Olympics are due in a day or two. But since Yahoo's site doesn't even have videos of sporting events—just news and analysis from Beijing—the comScore numbers suggest that, at the beginning of the Olympics anyway, viewers bypassed NBC's site for Yahoo's, sacrificing streamed events in the process. As a result, NBC's TV audience for the Olympics is overwhelming its online audience. NBC's own TAMI, or Total Audience Measurement Index, indicates that internet users have never comprised more than 8 percent of the total viewing audience for any single day since the Olympics started. Still, NBC is proudly touting the 830.1 million page views, 56.1 million video streams, and 38.9 million users that NBCOlympics.com has so far garnered. "These record numbers validate our multiplatform strategy," says Gary Zenkel, president of NBC Olympics. "They drive viewers to share in the Olympic experience on network television in record numbers. And as a result of this unprecedented digital effort, consumers have a destination to watch thousands of hours of video and relive the great moments of these Olympics." According to an NBC representative, the five most popular videos streamed from the site so far are all men's swimming or women's gymnastics. Meanwhile, a Yahoo spokesperson said that human-interest stories—such as one about a Swedish wrestler who sacrificed his bronze medal in protest over his judging—have been among the site's most popular. For NBC, the news is better for TV viewership. Through the first 10 days of the Games, over 196 million people tuned in, making these Olympics the fourth-most-watched television event in U.S. history, according to the network. On Saturday evening alone, 40 million viewers watched Michael Phelps win his eighth gold medal. But until NBC figures out how to make its online-viewing experience more user-friendly and tech savvy, the company's television audience will probably continue to trounce the online one. That's one Olympic event we can call right now. POLL: How have you been viewing the Olympics—online or on air? Take our poll at the top of the page and let us know. Related Links NBCOlympics.com Videos: OK Traffic, But Not Great Please, NBC, Use Hulu for Olympics Next Time! NBC's Media Experiment Pays Off With Phelps Source: Portfolio.com: Top 5 | 19 Aug 2008 | 4:30 pm The Gatorade ChallengeWith the world's attention focused on the Olympic games and its sweaty, thirsty athletes, this is prime time for sports drinks. Perhaps its most vexing rival has been VitaminWater, acquired for $4.1 billion from Glaceau in 2007 by archrival Coca-Cola. Hipsters have been buying VitaminWater by the case for its beauty and focus-oriented benefit. Increasingly, the brand began targeting athletes with celebrity endorsements by the likes of LeBron James and Kobe Bryant alongside 50 Cent and Kelly Clarkson. It didn't help that in 2007, Coca-Cola's PowerAde and private-label brands grabbed double-digit percentage gains. Gatorade was developed at the University of Florida in 1965 to help the electrolyte-depleted players on the football team (the Gators, of course). PepsiCo acquired Gatorade when it bought Quaker Oats for $13.4 billion in 2000, after outbidding Coca-Cola. In October 2006 she split PepsiCo's worldwide business into two units, a North American unit and an international unit. Then in December 2007, she further split the company into three units, anchored by PepsiCo Americas Beverages, PepsiCo International, and PepsiCo Americas Foods. It put D'Amore in charge of beverages and John Compton in charge of foods. Dr Pepper's Lonely Hearts Club Stock The Young Turk at Coke Absolut Takeover Source: Portfolio.com: Top 5 | 19 Aug 2008 | 4:00 pm Dennis Hopper Says Music Tells Story in `Easy Rider'Source: Bloomberg - All Podcasts | 19 Aug 2008 | 3:32 pm Worst Is Yet to Come"The worst is yet to come in the U.S. We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks."Harsh. Those were the words of Kenneth Rogoff, former chief economist of the International Monetary Fund and current economics professor at Harvard, spoken at a conference in Singapore but heard all around the world. More than one year into this credit crisis, Rogoff's comments sparked new fears that the end isn't in sight. Rogoff believes that Fannie Mae and Freddie Mac, whose shares were pummeled yesterday on fears of a government bailout, should have been closed down a decade ago and will most likely not be around in a few years. "They need to be nationalized, the equity holders should lose all their money. Probably we need to guarantee the bonds, simply because the U.S. has led everyone into believing they would guarantee the bonds,'' he said. Not surprisingly, Rogoff believes the U.S. economy is already in a recession. He predicts that housing market will continue to fall and the economic slowdown will last into the second half of 2009. As if on cue, the Commerce Department reported this morning that the growth of new housing projects fell to its lowest annual rate in 17 years during July. Rogoff also criticized the Federal Reserve for cutting interest rates as aggressively as it did while the credit crisis unfolded. He believes that will inevitably lead to significant inflation in the U.S. during the next few years. Also as if on cue, the Labor Department said wholesale inflation rose at the fastest pace since 1981 during July. Related Links Plosser Crashes the Party Recession Roll Call Parsing the Global Recession Source: Portfolio.com: Top 5 | 19 Aug 2008 | 1:30 pm See Dick ShopThe days are dwindling in Lehman Brothers' third quarter—another backbreaking quarter by all accounts—and the firm is considering several options to try to ease the pain.Relief could come in the sale of a stake in its asset-management business, Neuberger Berman. The business has been valued roughly at $10 billion—about the entire market value of Lehman itself—and a gain of several billion dollars from a sale of a significant stake could go a long way toward shoring up the Wall Street firm's balance sheet. Yet the virtually public disclosure that Neuberger Berman is on the block (Lehman is not commenting, but reports appear today in the Wall Street Journal, New York Times, Financial Times, and elsewhere after weeks of speculation and weeks of reports by Charles Gasparino on CNBC) also suggests that Lehman is getting desperate. This view, says Peter Eavis of the Wall Street Journal, is that the third quarter "has turned ugly and the bank is racing to get deals done before the period ends." Eavis also notes that a sale may be driven as much by Neuberger Berman as by Lehman: "Top-level Neuberger employees—having seen much of their wealth wiped out by Lehman's plunging share price and fed up with their healthy firm being overshadowed by a sick parent—may want an outside firm to take a large stake." A successful sale of a big stake would be a big boost to Dick Fuld, the chief executive of Lehman who has faced calls for asset sales since the firm reported a loss of $2.8 billion for the second quarter, its first as a public company. Fuld has raised $12 billion of new capital and shaken up the management ranks, and has reportedly tried to persuade big Asian investors to take a stake in the firm. Today, an analyst with J.P. Morgan Chase estimates that Lehman will take $4 billion in write-downs in the third quarter. The New York Times reports that Lehman has sent letters to a number of private equity firms and other financial institutions to test their interest in Neuberger Berman. "The letter, a so-called memorandum of understanding, did not put a value on the division," the Times said. "It said that interested parties could bid for all or some of the pieces but encouraged bidders to make an offer for the whole business." Yves Smith on the Naked Capitalism blog says the description of the letter is curious. "This gives the impression that Lehman is price-shopping to get inputs as to whether it should sell all or part of the operations or not," she writes. "The reason I doubt this interpretation is you don't circulate 'detailed' information to buyers casually." Another curiosity, she says, is that no Japanese banks, flush with cash (as seen by Monday's deal for UnBanCal), are listed as prospective buyers in any of the reports. Neuberger was acquired by Lehman in 2003 for $2.6 billion. Since then, the business has more than doubled; it accounts for the bulk of Lehman's $277 billion of assets under management. Related Links High Anxiety The Weakness of Marking Subprime Bonds to Market Buffett Buys Deal Debt Source: Portfolio.com: Top 5 | 19 Aug 2008 | 1:30 pm
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A share of Fannie Mae (FNM) goes for $6. Freddie Mac's (FRE) shares are at just above $4. The market caps of the two companies combined is only about $9 billion.
