Solutia's Second Secondary Comes At Deep Discount (SOA)

Source: 24/7 Wall St. | 21 Aug 2008 | 1:21 pm

Limited Brands shares rise after profit beats estimates

Shares of Limited Brands Inc., owner of Victoria’s Secret and Bath & Body Works, rose Thursday after the company reported second-quarter profit that exceeded analysts’ estimates and raised its full-year outlook.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:18 pm

Subprime Today: Lone Star to grab 91% stake in IKB; secret Lehman talks

U.S. private equity group Lone Star is buying a 90.8% stake in IKB Deutsche Industriebank, the German lender hit by massive losses from the subprime crisis. See full story.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:16 pm

Major League Baseball's $22,000 mud

I supply special mud for Major League Baseball. The story goes back to when pro baseball teams began using new balls for each game. They wanted to remove the factory gloss and make the balls easier to grip. The umpires tried in-field dirt, shoe polish, and tobacco juice, but everything damaged the ball.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 1:11 pm

Hallmark to offer gay marriage cards

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 1:10 pm

Futures Movers: Oil rallies on weaker dollar, U.S.-Russian tensions

Crude-oil futures Thursday rally to above $118 a barrel, as the U.S. dollar fell against other major currencies and as tensions between the U.S. and Russia increased after the U.S. agreed to construct a missile-defense system in Poland.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:08 pm

Economic Report: Initial jobless claims fall 13,000 to 432,000

The number of new claims for state unemployment benefits fell by 13,000 to 432,000 last week, and the number of claims under a new extended federal program rose by 714,000 to 1.28 million, the Labor Department reports.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:06 pm

Metals Stocks: Gold, other metals rally on credit jitters, dollar fall

Gold and other metals futures rallied Thursday, propelled higher by the U.S. dollar’s tumble against other major currencies amid rekindled fears about the financial sector.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:06 pm

Jobless Figures For Dummies: Three Million More Unemployed

The latest jobless numbers are as complex as Einstein's Theory of Relativity.

Leaving aside the fact that the govenment appears unable to turn out economic figures which are of any use to the press or the public, none of today's employment data are good.

Continuing jobless claims rose by over 66,000 in the last month to almost 3.3 million. That is an increase of about a third over the number from the same period last year.

The only bit of news that matters from all the statistics is that the trouble in the economy is now hitting the job market in earnest. If this recession looks like 1973/74 and the early 1980s, unemployment will rise to above 8%. Today that figure is 5.5%. On the back of an envelop that means three million more people will lose jobs.

The toll of human suffering is likely to reach its higher level in several decades because the cost of living is rising so fast and prices of fuel and commodities are likely to stay high. Credit is so difficult to come by that the back-up capital from credit cards and home equity have all but disappeared.

The lose of jobs will hit home at the federal government level as hard as anywhere. The tax stimulation package, FDIC funds, and Fed lending have all drawn down massive amounts of capital from Fort Knox. Fortunately, the years of the gold standard are over.

The jobless figures make it look like this recession will be a long one. Companies are starting the process of cutting now, but a slow third and fourth quarter should accelerate that.

The bread line just got longer.

Douglas A. McIntyre

Source: 24/7 Wall St. | 21 Aug 2008 | 1:05 pm

5 Least Tax-Friendly U.S. Cities for Travelers (Deal of the Day)

Business travelers pay a steep price to rent a car, dine out or stay in these cities.

Source: SmartMoney.com | 21 Aug 2008 | 1:05 pm

Hedge fund RAB Special Situations considers buyback

RAB Special Situations, the hedge fund that bet on Northern Rock staying in private hands, is considering a share buyback after its share price plummeted 51pc this year.
Source: Telegraph Business | 21 Aug 2008 | 1:04 pm

China bank sees top 2008 profits

China's largest bank reports a 57% jump in first half profits and says its earnings have outstripped any of its rivals worldwide.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 1:01 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:01 pm

NewsWatch: U.S. stock futures drop as nervousness returns

U.S. stock futures pointed to a weaker start Thursday as nervousness crept back into the market after a one-day reprieve, with oil prices back on the upswing and more downgrades to earnings estimates for top brokerages.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 1:00 pm

Kohl's names new CEO (AP)

AP - Kohl's Corp. announced Thursday that Chairman Larry Montgomery has resigned as chief executive and will be replaced in that role by the retailer's president, Kevin Mansell.
Source: Yahoo! News: Business | 21 Aug 2008 | 12:58 pm

Jobless claims ease for 2nd straight week

The number of out-of-work Americans who signed up for jobless benefits fell last week for the second week in a row, coming in below economists' expectations.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 12:56 pm

Lehman outlook dims on failed sale report (Reuters)

Reuters - The outlook for Lehman Brothers Holdings Inc darkened further on Thursday as a newspaper reported that an intended asset sale had collapsed and a Citigroup analyst forecast big losses for the group.

Source: Yahoo! News: Business | 21 Aug 2008 | 12:56 pm

Lehman outlook dims on failed sale report

LONDON (Reuters) - The outlook for Lehman Brothers Holdings Inc darkened further on Thursday as a newspaper reported that an intended asset sale had collapsed and a Citigroup analyst forecast big losses for the group.

Source: Reuters: Business News | 21 Aug 2008 | 12:56 pm

Financials weigh on US stock futures

Wall St was set to open lower on Thursday as investors respond to higher oil prices and continuing concerns about the financial sector, in particular mortgage giants Fannie Mae and Freddie Mac and investment bank Lehman Brothers
Source: FT.com - US homepage | 21 Aug 2008 | 12:56 pm

Bond Report: Treasurys lower after initial claims report

NEW YORK (MarketWatch) -- Treasurys fell slightly early Thursday, pushing two-year note yields down for the first time in six days, after the Labor Department said initial claims for unemployment benefits declined while the trend in continuing claims remained near a five-year high.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 12:56 pm

Analysts see tough quarter for U.S. investment banks (Reuters)

Reuters - Wall Street research analysts are projecting yet another tough quarter for U.S. investment banks marked by additional writedowns across a series of fixed-income assets amid an already weak operating environment.

Source: Yahoo! News: Business | 21 Aug 2008 | 12:53 pm

Analysts see tough quarter for U.S. investment banks

(Reuters) - Wall Street research analysts are projecting yet another tough quarter for U.S. investment banks marked by additional writedowns across a series of fixed-income assets amid an already weak operating environment.

Source: Reuters: Business News | 21 Aug 2008 | 12:53 pm

Simplify Your Life (Cover Story)

Here are tips for streamlining your life -- and profiting along the way.

Source: SmartMoney.com | 21 Aug 2008 | 12:53 pm

Flashing Yellow, With Lots of Green (Today From Barron's)

A risky but attractive way to bet on phone book publishing.

Source: SmartMoney.com | 21 Aug 2008 | 12:53 pm

Sharp drop in business investment points to slower UK growth

A bigger-than-expected drop in business investment has increased fears that the economy is on the brink of recession and produced renewed calls for a cut in interest rates.
Source: Telegraph Business | 21 Aug 2008 | 12:53 pm

Jobless claims fall again but still high

WASHINGTON (Reuters) - The number of U.S. workers filing new claims for jobless benefits fell last week for a second week in a row, the government said on Thursday, though they continued at levels that showed a weakening labor market.

Source: Reuters: Business News | 21 Aug 2008 | 12:52 pm

Futures briefly pare losses on jobless claims (Reuters)

Reuters - Stock index futures briefly pared losses on Thursday following a report that showed the number of people filing for jobless benefits fell for the second week in a row last week.

Source: Yahoo! News: Business | 21 Aug 2008 | 12:51 pm

Futures briefly pare losses on jobless claims

NEW YORK (Reuters) - Stock index futures briefly pared losses on Thursday following a report that showed the number of people filing for jobless benefits fell for the second week in a row last week.

Source: Reuters: Business News | 21 Aug 2008 | 12:51 pm

British retail sales recover in July

Retail sales rose in July, recovering from the biggest monthly drop for 22 years in June, official data showed on Thursday. On a monthly basis, retail sales grew by 0.8...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:45 pm

Jobless claims fall again but still high

WASHINGTON (Reuters) - The number of U.S. workers filing new claims for jobless benefits fell last week for a second week in a row, the government said on Thursday, though they ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:45 pm

Lehman outlook dims on failed sale report

LONDON (Reuters) - The outlook for Lehman Brothers Holdings Inc darkened further on Thursday as a newspaper reported that an intended asset sale had collapsed and a Citigroup analyst...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:43 pm

Before the Bell: H.J. Heinz, Burger King, Goldman Sachs in the spotlight

Stock market futures pointed lower Thursday, with oil prices back on the rise and brokers again under scrutiny after Citi lowered its earnings estimates.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 12:42 pm

Stocks point lower after jobless claims data

Stock futures are still trading lower, even after the Labor Department reported a larger-than-expected drop in unemployment benefit claims. The department said Thursday that jobless...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:41 pm

ICBC becomes world's most profitable bank

Industrial & Commercial Bank of China (ICBC) was the world's most profitable bank in the first half, reporting a 64.5 billion yuan renminbi (£5.05 billion) net profit in the six months to June 30.
Source: Latest Business News from Times Online | 21 Aug 2008 | 12:40 pm

Indications: U.S. stock futures drop as nervousness returns

U.S. stock futures pointed to a weaker start Thursday as nervousness crept back into the market after a one-day reprieve, with oil prices back on the upswing and more downgrades to earnings estimates for top brokerages.

Source: MarketWatch.com - Top Stories | 21 Aug 2008 | 12:39 pm

UST Participation in Lehman Brothers Consumer Conference Available Via Web

STAMFORD, Conn., Aug. 21 /PRNewswire-FirstCall/ -- UST Inc. (NYSE: UST) Chairman and Chief Executive Officer Murray S. Kessler will present at the Lehman Brothers...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:38 pm

Jobless claims fall for 2nd straight week

The government says the number of newly laid-off workers seeking unemployment benefits fell more than expected last week, the second straight weekly drop from a six-year high. The Labor...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:37 pm

Jobless claims fall for second straight week

The government says the number of newly laid-off workers seeking unemployment benefits fell more than expected last week, the second straight weekly drop from a six-year high. The Labor...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:36 pm

IAC/Interactive's Do or Die Date Has Come (IACI, IACID, HSNI, IILG, TKTM, TREE)

Source: 24/7 Wall St. | 21 Aug 2008 | 12:31 pm

Met-Pro Corporation Announces Second Quarter Financial Results

Record Second Quarter Net Sales, Net Income, and Earnings Per Share HARLEYSVILLE, Pa., Aug. 21 /PRNewswire-FirstCall/ -- Raymond J. De Hont, Chairman and Chief...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:30 pm

Burger King profit exceeds expectations

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 12:29 pm

Gas prices continue tumble

Gas prices continued their month-long slide Thursday, bringing the total decline in 35 straight days of decline to more than 41 cents a gallon, according to a daily survey of gas station credit card swipes.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 12:27 pm

Kohl's President Mansell appointed CEO

NEW YORK (Reuters) - Kohl's Corp , a mid-priced apparel and home goods retailer, said on Thursday that Chief Executive Larry Montgomery would step down from the role, to be succeeded by President Kevin Mansell.

Source: Reuters: Business News | 21 Aug 2008 | 12:21 pm

GAMMA Score Assigned to Wimm-Bill-Dann Foods, CGSs Affirmed and Withdrawn

S&P Wimm-Bill-Dann Assigned GAMMA-7+, CGSs Withdrawn MOSCOW, Aug. 21 /PRNewswire/ -- Standard & Poor's Governance Services said today it assigned its...
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:15 pm

24/7 Wall St. Most Overpaid CEO Of The Day: JDS Uniphase (JDSU) CEO Kevin Kennedy

JDS Uniphase (JDSU) announced it business fell to pieces in the last quarter. On a non-GAAP basis, the company said it would have earned $15.5 million, or 7 cents per share. Revenue grew to $390.3 million from $350.7 million last year. Analysts were expecting earnings of 10 cents a share on revenue of $395.8 million, according to consensus estimates from Thomson Reuters, writes MarketWatch.

The market was upset and pushed the shares down 11% in the pre-market, falling to $10.50, about $1 from its 52-week low. Over the last two years, JDSU is down about 50%.

JDS Uniphase Kevin Kennedy has done unusually well compared to his shareholders. According to the company's last proxy, he made a base salary of $575,000 and had total compensation of over $1.9 million.

It's good to be king.

Douglas A. McIntyre

Source: 24/7 Wall St. | 21 Aug 2008 | 12:13 pm

Dutton Research Reiterate Speculative Buy Rating for MortgageBrokers.com with a Price target of $0.40

MortgageBrokers.com Announces Improved Results for Q2 FY 12/31/2008; Strong Revenue and Profitability; Speculative Buy Rating Reiterated TORONTO, Aug....
Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Aug 2008 | 12:08 pm

Oil jumps on shrinking gas supply

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 12:07 pm

Burger King profit up, outlook within Wall St view (Reuters)

Reuters - Burger King Holdings Inc , the world's second-largest hamburger chain, posted a higher-than-expected quarterly profit on Thursday and issued a fiscal 2009 forecast within Wall Street's expectations.
Source: Yahoo! News: Business | 21 Aug 2008 | 12:03 pm

Burger King profit up, outlook within Wall St view

NEW YORK (Reuters) - Burger King Holdings Inc , the world's second-largest hamburger chain, posted a higher-than-expected quarterly profit on Thursday and issued a fiscal 2009 forecast within Wall Street's expectations.

Source: Reuters: Business News | 21 Aug 2008 | 12:02 pm

Heinz profit tops view, aided by price increases

CHICAGO (Reuters) - Ketchup and packaged foods maker H.J. Heinz Co posted higher-than-expected quarterly earnings on Thursday, lifted by price increases and double-digit sales increases in all parts of the world.

Source: Reuters: Business News | 21 Aug 2008 | 12:01 pm

Fed Rumor Patrol

When it comes to Lehman Brothers, everyone is walking on eggshells—including the Federal Reserve.

The Wall Street Journal reports that the Fed called Credit Suisse in July to see if there was any truth to a rumor that the bank was planning to pull a line of credit to Lehman. Credit Suisse, the paper says, told the Fed it had no such intentions.

The call was "unusual" the Journal says, because of the implication that the Fed was hinting that Credit Suisse should keep backing Lehman.

 "Urging lenders and trading partners to stick by an embattled firm also carries the risk that it will inflame the same anxieties that the Fed is trying to soothe. That is one reason why such calls occur rarely."

Felix Salmon points out that nothing in the article supports the idea that the Fed was subtly urging Credit Suisse to keep doing business with Lehman:

"All we're told is that the Fed ‘quietly called' the bank to see if the rumor was true. Which is exactly what you'd hope the Fed would do if it heard that credit lines to a major investment bank were being pulled. And the Fed seems to have had no particular interest in managing or quashing rumors: once it was assured that the rumor was not true, it seems to have let the matter drop."

So this may be what the Fed does as a matter of course. But by highlighting the Lehman rumor, the Journal is bolstering the view that Lehman is in a fragile state and in need of special help.

That view is highlighted by a report in the Financial Times, following on an article in the New York Post on Wednesday, that Lehman sought, but failed to sell as much as 50 percent of the firm to the Korea Development Bank or to Citic Securities of China.

The Koreans apparently came the closest to striking a deal, but walked away after Lehman insisted on too high of a price.

"The talks reflect the growing pressure on Dick Fuld, Lehman's chief executive, to raise capital ahead of the mid-September earnings report," the Financial Times says.

Citic, however, told Reuters that it held no formal talks with Lehman.

With Lehman's share price down 79 percent this year, the parade of reports of missed opportunities to sell assets or stakes and reports of rumors quashed is certain to add to the pressure to oust Dick Fuld as chief executive of Lehman.

If he intends to the be last C.E.O. standing on Wall Street, he needs to pull a rabbit out of the hat in the next two weeks.



Related Links
Rumor Sourcing of the Day
The Man Who Saved (or Got Suckered by) Wall Street
The Great Depression Debate


Source: Portfolio.com: Top 5 | 21 Aug 2008 | 12:00 pm

Frontline bullish on tanker demand

Record first-half income and bullish statements about future prospects could not prevent shares in the world's largest oil tanker operator on Thursday falling more than 7 per cent.Frontline, the cornerstone...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 11:45 am

Surprise gain in UK retail sales

Retail sales defy grim forecasts to rise 0.8% in July, according to the Office for National Statistics.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 11:42 am

Top Pre-Market Analyst Upgrades (AAUK, ACI, BBT, CETV, FCL, JKHY, MEE, WCG)

These are some of the top upgrades or positive calls we are seeing from analysts this Thursday morning:

• Anglo American (AAUK) Raised to Strong Buy at S&P (late Weds. call).
• Arch Coal (ACI) Raised to Buy at UBS.
• BB&T Corp. (BBT) Raised to Buy at S&P.
• Central European Media (CETV) Raised to Buy at Citigroup.
• Foundation Coal (FCL) Raised to Buy at UBS.
• Jack Henry (JKHY) Cut to Hold at Needham; Cut to Neutral at D.A. Davidson.
• Massee Energy (MEE) Raised to Buy at UBS.
• WellCare Group (WCG) Started as Buy at B of A.

Jon C. Ogg
August 21, 2008

Source: 24/7 Wall St. | 21 Aug 2008 | 11:36 am

Oil rises to $117 on Russia-US tension

LONDON (Reuters) - Oil rose to $117 a barrel on Thursday, climbing for a third straight session, as Washington's missile shield deal with Poland angered Russia, adding to international tension.

Source: Reuters: Business News | 21 Aug 2008 | 11:35 am

Is college still worth the price?

In May, more than 20,000 spectators gathered under blue skies at Wesleyan University in Middletown, Conn. to hear Democratic presidential candidate Barack Obama deliver the commencement address.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 11:31 am

Wall Street Still in the Club

It was about this time last summer that some Wall Street executives were accused of spending too much time on country club golf courses as their firms came under fire in the credit storm.

Yet as expenditures on luxuries like exotic vacation, jewelry and even Botox wane, country club memberships are holding surprisingly steady. Golf, it appears, is a Wall Street necessity, even in a downturn.

Storied clubs, like Shinnecock in the Hamptons, still have golfers waiting to get in. And some of the splashier clubs—like Shinnecock's two-year-old neighbor, Sebonack—are also not wanting for members. Even though initiation fees at Sebonack, for example—often cited as one of the most expensive nationwide—are at least $650,000 (with some speculation that the fees are approaching $1 million), membership is not on the wane.

And even those out of work are reluctant to relinquish their memberships. At places like National Golf Links in the Hamptons and Winged Foot in Westchester, as well as Shinnecock, the difficulty in securing an invitation to join makes it hard to give up. And when a golfer joins a club like Sebonack, or other Hampton's newcomers like Friar's Head or the Bridge, the steep price of admission makes it too expensive to walk away.

According to Jay Mottola, the executive director of the Metropolitan Golf Association, "those with great traditional courses are less impacted by economic trends than others because there is tremendous demand."

"They are not seeking additional memberships," he notes. "There may be fewer rounds played and less activity, but in those clubs the difference is more marginal."

He added that "those clubs have always had full memberships and continue to have pools who want to join."

Still, even the toniest of clubs are seeing a downturn in rounds played, says Tom Bruff, a principal with Global Golf Advisors in Dallas. And a decline in rounds means a decrease in food and beverage revenues, typically a profit center.  

The clubs most affected are those what is essentially the middle market.

Over the last 12 years,  Mottola said, "50 new courses have been built in the 75 mile area surrounding New York alone." He acknowledged that the growth, coupled with the economic slowdown, "is a concern." Additionally, golf itself has declined in popularity, which many attribute to a change in how families spend their time.

"Parents are spending a lot more time with their kids than a generation ago,"  Mottola said, in addition, to an increase in options in how to spend free time." In particular, he said, youth sports often take place on Saturday mornings and so conflict with the time when adults might instead golf." There is, simply put, "less time for golf."

 Bruff said that rounds were down 4 percent in May from the same time in 2007, which was "not an up year. Some equity clubs—those where memberships can be bought and sold—have waiting lists to sell, he added.

Clubs in the the metropolitan New York region are holding on, but they appear to be the exception. The economic slump has been taking its toll on clubs elsewhere in the nation.

According to a new study by the National Golf Foundation, up to 20 percent of golf clubs nationwide are at financial risk. Jim Kass, the foundation's director of member research and communications of the Jupiter, Florida-based organization said that the estimates stemmed from the clubs' self-assessment. The study was done, he said, in response to concerns that golf, as an industry, has declined in popularity over the last decade because of changing demographics and competing demands on golfers' free time. He said they found that "it is not a sky is falling situation."

Over the last 10 years, Kass said, 387 private courses have gone public to increase revenues (he noted that 288 converted from public to private, but those are largely clubs built as part of real estate developments).

Going public is one alternative. Some of the newer clubs have adopted member initiatives to encourage newcomers to join. One such club-replete with helipad--is Hamilton Farms in Gladstone, New Jersey. While the initiation fee of $250,000 ("young executives" pay a mere $175,000), does not rival its Long Island counterparts, it is nonetheless not cheap. According to general manager Timothy Bakels, the club allows members to invite guest to play for the season, paying only the dues for the year to determine if the golfer wants to join. This has helped shore up its membership. The club is holding its own, Bakels said, adding that golf revenues, as well as food and lodging, "are up."

But it's a precarious time and Mottola, for one, is watching closely. Clubs are then balancing their increased costs with declining use—and additionally balancing the needs of different generations.

As Mottola put it, "It's not your father's club anymore, but your father is still a member."


Related Links
The Great Panic
On to the Next Sure Thing
Job Security


Source: Portfolio.com: Top 5 | 21 Aug 2008 | 11:30 am

Top Pre-Market Analyst Downgrades (AER, AGP, LEH, NVO, CRM, SNPS)

These are some of the downgrades or cautious analyst calls we are seeing this Thursday morning:

• AerCap (AER) Cut to Hold at Citigroup.
• Amerigroup (AGP) Started as Neutral at B of A.
• Lehman (LEH) estimates cut at Citigroup.
• Novo Nordisk (NVO) Started as Neutral at UBS.
• Salesforce.com (CRM) Cut to Neutral at Piper Jaffray.
• Synopsys (SNPS) Cut to Sell at Citigroup.

Jon C. Ogg
August 21, 2008

Source: 24/7 Wall St. | 21 Aug 2008 | 11:29 am

Stocks set to fall amid jitters

Stock futures tumbled early Thursday, weighed by higher oil prices and lingering concerns about the financial sector.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 11:27 am

Lone Star to buy subprime victim IKB

Lone Star, the US private equity group, is to take over IKB after months of talks to find a new owner for the German bank, one of the earliest casualties of the credit crisis.Leading board members at KfW,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 11:23 am

Lone Star to buy subprime victim IKB

US private equity group Lone Star is to take a 90.8 per cent stake in IKB, after months of talks to find a new owner for the German bank, one of the earliest casualties of the credit crisis
Source: FT.com - US homepage | 21 Aug 2008 | 11:23 am

Supply concerns send oil price up

Oil prices rise on the back of geopolitical worries after the US signs a missile shield deal with Poland.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 11:14 am

Energy firm E.On to raise prices

Energy firm E.On is to raise gas prices by 26% and electricity prices by 16% on 22 August, blaming higher wholesale costs.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 11:09 am

Financial fears stalk FTSE

London equities fell on Thursday, with further losses for financial stocks as renewed fears about the health of the sector spread round the globe. The FTSE 100 lost 45 points in morning trade to 5,326...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 11:02 am

German tyre firm succumbs to bid

Tyre maker Continental agrees that suitor Schaeffler can buy up to half the company after it ups its offer.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 10:57 am

Continental reaches deal with Schaeffler

Schaeffler, the privately-owned bearings maker, has won one of the fiercest takeover battles corporate Germany has seen in recent years.On Wednesday night Schaeffler made the widely anticipated move of...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 10:57 am

Recession fears hit European stocks

European stocks were lower on Thursday after sentiment dipped in response to further signs that the eurozone economy may be recession-bound.Confidence in the market also took a knock as oil prices ticked...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 10:55 am

Asia sinks as credit crisis victims mount

Financial shares dragged Asia Pacific stock markets lower on Thursday. Worries about further credit crisis-related losses deepened after profits dropped by a quarter at Babcock & Brown, the Australian...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 10:49 am

Airline Roulette: Industry Leader Sees More Failures (AMR)(DAL)

The head of the International Air Transport Association thinks that the plight of the airline industry will get worse before its gets better. He believes that losses among carriers could hit over $6 billion this year.

Oil prices have not come down enough to make fuel "affordable" to the point of curbing losses. Passenger traffic is falling even in formerly strong markets like Asia.

According to The Wall Street Journal, "We are bracing for more situations of airlines collapsing" amid higher fuel prices and lower revenue, warned IATA Chief Executive and Managing Director Giovanni Bisignani. The new concern here is that consumer travel habits will no longer make up for jet fuel pricing.

If his eminence is correct, the recent rally in US airline stocks is premature. Suckers are pouring their cash into airline stocks hoping that falling oil will save the industry. But, oil's move from $143 to $115 still does not bring jet fuel down to a level which allows operations like AMR (AMR) and Delta (DAL) to get back in the black. If these companies lose meaningful amounts of revenue, they have run through most of the cost cutting that was to help them get by in a hard year.

Airline stocks have rallied off of their bottom, although they are still down about 60% from their 52-week highs. AMR is up 50% in a month.

If there is another $6 billion of losses hiding in the industry, airline stocks may be back to their lows before the end of the quarter. The capital bases at most carriers cannot handle another big hit on their bottom lines.

Douglas A. McIntyre

Source: 24/7 Wall St. | 21 Aug 2008 | 10:44 am

Stansted faces second strike threat

Air travellers using Stansted on Bank Holiday Monday face a renewed threat of disruption from 30 airport workers.
Source: Latest Business News from Times Online | 21 Aug 2008 | 10:35 am

Tata turns to asset sales to pay for Jaguar and Land Rover

Tata Motors has been forced to scrap a planned 30 billion rupee (£368 million) rights issue that was to help finance the group's acquisition of Land Rover and Jaguar.
Source: Latest Business News from Times Online | 21 Aug 2008 | 10:32 am

Daimler denies trucks spinoff being mulled

FRANKFURT (Reuters) - Daimler AG denied a magazine report on Thursday that it was considering more job cuts and may spin off its market-leading trucks business as a way to help boost its weak share price.

Source: Reuters: Business News | 21 Aug 2008 | 10:28 am

Temasek prepared to invest more in Western banks (Reuters)

Reuters - Singapore sovereign wealth fund Temasek Holdings , which has pumped billions of dollars into ailing lenders such as Merrill Lynch & Co Inc , said it may invest more in Western banks if the opportunity arose.
Source: Yahoo! News: Business | 21 Aug 2008 | 10:27 am

Temasek prepared to invest more in Western banks

SINGAPORE (Reuters) - Singapore sovereign wealth fund Temasek Holdings , which has pumped billions of dollars into ailing lenders such as Merrill Lynch & Co Inc , said it may invest more in Western banks if the opportunity arose.

Source: Reuters: Business News | 21 Aug 2008 | 10:26 am

Oil and gold rise as Russia growls

Oil and gold prices rose on Thursday fuelled by mounting geopolitical strains after Russia responded angrily to a missile shield agreement between the US and Poland amid continuing tensions following...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 10:22 am

Amlin profits punctured by plunging investments

Amlin, the insurance group that operates mainly through the Lloyd's of London market, today posted a 26 per cent fall in first-half profit, which it blamed on reduced investment income, saying its core underwriting business remained strong.
Source: Latest Business News from Times Online | 21 Aug 2008 | 10:14 am

Net Neutrality And The Myth Of Fairness (CMCSA)

The FCC did not like it when Comcast (CMCSA) started to shut off customers running video file-sharing services. Comcast said the programs use too much bandwidth. The agency said that people who pay for broadband should get it.

It is easy for the FCC to take its position. It does not have to pay billions of dollars to upgrade the infrastructure at Comcast or any of the other large cable companies.

Now that Comcast has been beaten around the head by the FCC, it has come up with a new program to cut off the problem that the heaviest broadband users create for all of the other customers on the system. The firm only has so much capacity to move data, voice, and video. Something has to give.

Comcast will slow down the connections of the bandwidth hogs when the broadband speeds for other customers are being compromised. According to Bloomberg, "Top Internet speeds for the heaviest users will be reduced for 10 to 20 minutes to keep service to other users flowing"

While the FCC may have problems with the new solution, it has not offered any "work-around" of its own. Broadband capacity at cable companies is finite. If the democracy of the internet is to be preserved 1% of the customers cannot eat up 30% of the capacity.

Perhaps the FCC can start its own cable company to provide better service.

Douglas A. McIntyre

Source: 24/7 Wall St. | 21 Aug 2008 | 10:12 am

Financial woes halt dollar rally

The dollar pulled back from its recent highs on Thursday as fresh worries emerged over the health of the US financial system.The dollar has rallied strongly since the start of the month, climbing over...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 10:10 am

Persimmon says conditions stabilizing

Housebuilder Persimmon has reported a 64 per cent slump in interim pre-tax profits, and slashed the dividend by more than two thirds, but said conditions are beginning to stabilise.John White, chairman,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 10:09 am

Boeing (BA) And Its Unions Go To Hell Together

Boeing (BA) has delayed the launch of its Dreamliner three times. Supply chain trouble and manufacturing flaws have damaged the company's reputation with its customers and opened a door for more competition from Airbus. The set-backs have been so substantial that some Boeing customers want compensation for the late deliveries.

None of this has done any good for Boeing shareholders. Despite the fact that the company has a huge backlog of orders, its share price is $63, near a 52-week low and down from the period high of $107.15.

Boeing's problems may be getting worse. The International Association of Machinists and Aerospace Workers could strike the company if it does not get better health benefits and pension contributions.

Unions and management often conspire to cut their own throats. If Boeing cannot deliver the Dreamliner on time. earnings suffer. That, in turn, undermines the company's ability to pay-out better wages and benefits to employees.

To avoid a disaster which could bloody both parties, Boeing should offer the union an extraordinary deal. It should trade large improvements in benefits for on-time delivery of the Dreamliner. The union should get a good deal of what it wants if the planes come off the assembly line as per schedule for each of the next five years.

The union will probably try to shut down Boeing to prove its point. By doing so, it will only cripple its own long-term prospects.

Douglas A. McIntyre

Source: 24/7 Wall St. | 21 Aug 2008 | 9:57 am

Temasek looks to invest in more banks

Temasek, which already owns large stakes in lenders such as Merrill Lynch and Barclays, will look at opportunities to buy more shares in Western banks
Source: FT.com - US homepage | 21 Aug 2008 | 9:50 am

Temasek looks to invest in more banks

SINGAPORE, Aug 21 - Singapore sovereign wealth fund Temasek Holdings said on Thursday its assets rose 13 per cent in the year to March 2008 and it was prepared to invest more money in Western banks if...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Aug 2008 | 9:50 am

Old Mutual pays €165m for Chinese fund stake

Fortis, the troubled Belgo-Dutch bank, has continued its asset sale with news that it has sold a 49 per cent stake in Chinese joint venture AATEDA Fund Management to Old Mutual for €165 million in cash.
Source: Latest Business News from Times Online | 21 Aug 2008 | 9:47 am

Coventry Building Society posts 8pc increase in profits

Coventry Building Society has bucked the recent trend among mortgage lenders by posting an 8pc increase in profit before tax to £35.5m in its first-half results.
Source: Telegraph Business | 21 Aug 2008 | 9:43 am

Buffett spotlights nation's debt crisis

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 9:42 am

Microsoft (MSFT) Attacks Its Self-Loathing By Turning To Seinfeld

Jerry Seinfeld can be a vicious and cruel comedian. Microsoft (MSFT) has changed that by putting $10 million in his pocket.

The people from Redmond have finally acknowledged that a huge portion of the PC using population hates Windows, especially the new Vista version. It is complex and heavy with bugs. Very few people can figure out how to tap many of its features.

The troubles with Windows have opened a door for Apple (AAPL) to promote its Mac OS which is supposedly user-friendly and safe for both children and pets.

In an attempt to cut its losses and try to make the best of bad software, Microsoft has retained Seinfeld to appear in new advertising which will feature him and Bill Gates. According to The Wall Street Journal, "Microsoft's immediate goal is to reverse the negative public perception of Windows Vista, the latest version of the company's personal-computer operating system."

Microsoft will spend $300 million on the campaign to try to explain how Windows allows people and ideas to connect to one another. That assumes people who have Vista will somehow view it differently because the world's largest software company says the product is misunderstood.

Marketing can often reinforce perceptions but it can rarely reverse them. Consumers, even those with only mid-level IQs, have caught on to the the fact that Vista is not as easy to use as Microsoft's earlier operating systems.

Seinfeld and $300 million cannot change that.

Douglas A. McIntyre

Source: 24/7 Wall St. | 21 Aug 2008 | 9:42 am

ENRC rejects Kazakhmys suggestion of seat on board

Kazakh miner Eurasian Natural Resources Corporation (ENRC), which today posted a 250pc jump in profits, has rejected any suggestion it could give Kazakhmys a seat on the board.
Source: Telegraph Business | 21 Aug 2008 | 9:40 am

The only way to fix Social Security

John McCain and Barack Obama both talk about how they would put Social Security on sound financial footing.

Source: Business and financial news - CNNMoney.com | 21 Aug 2008 | 9:30 am

Lone Star Funds to take over IKB

US private equity firm Lone Star is to buy German lender IKB Deutsche Industriebank, according to IKB's biggest shareholder.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 9:22 am

E.ON energy price surge to hit four million

More than four million customers of E.ON have been hit with energy price prices of up to 26 per cent, adding to the misery facing hard-pressed UK consumers.
Source: Latest Business News from Times Online | 21 Aug 2008 | 9:09 am

High street sales take an unexpected upturn

A surprise jump in high street sales last month today fuelled uncertainty over the true state of consumer spending as Britain’s economic woes deepen.
Source: Latest Business News from Times Online | 21 Aug 2008 | 9:05 am

Retail group in government plea

The British Retail Consortium writes a letter to the government asking for help to support struggling High Street stores.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 8:42 am

Japan surplus down as US weakens

Japan's trade surplus shrank by more than expected in July, as a result of weaker US demand and an increase in oil imports.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 7:29 am

Lehman cash call 'shunned' by China and Korea

China's Citic Securities and state-owned Korea Development Bank (KDB) today denied that they held formal talks this month with Lehman Brothers over buying up to half of the beleaguered Wall Street bank.
Source: Latest Business News from Times Online | 21 Aug 2008 | 7:05 am

Persimmon posts sharp profit fall

UK housebuilder Persimmon reports a sharp drop in half-year profits as it struggles to deal with the housing market downturn.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 7:00 am

Wall Street finishes erratic day higher

Share prices scored a moderate gain after a volatile session Wednesday in which the major stock indexes and the price of oil jumped in and out of positive territory.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Hines Horticulture files for bankruptcy

HORTICULTURE Nursery firm petitions for bankruptcy

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Oil speculators held great sway over prices, data suggest

At one point in July, a Swiss trading firm is believed to have held 11% of futures contracts on the New York Mercantile Exchange for profit rather than for lining up fuel supplies.

Regulators had long classified a private Swiss energy conglomerate called Vitol as a trader that primarily helped industrial firms that needed oil to run their businesses.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Upscale malls reach out as shoppers cut back

Stores feel the pinch as consumers shift to bargain hunting

Noontime shopping sprees at the mall for Pam Lewellen of San Clemente are decidedly less expensive than they used to be. These days, she says, "I am constantly looking for that deal."

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Lead wheel weights to be phased out in California by end of 2009

Chrysler and three lead wheel weight makers agree to the phaseout in a settlement of a suit brought by an environmental group, which contended the car parts threatened drinking water.

Lead wheel weights, widely used to balance vehicle tires but considered a threat to drinking water, will be phased out in California by the end of next year under a court settlement approved Wednesday.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Some EBay sellers frustrated with rule changes

Moves meant largely to expand the ranks of buyers have been bad for the bottom lines of some merchants.

Some people who sell things on EBay are fed up with new rules the company has imposed in hopes of making the auction website more attractive to online shoppers. Now even more changes are coming in the next few weeks, but this time EBay Inc. hopes it can cool tempers.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Pension ruling a partial win for both sides

An appeals court says cash-balance plans are legal, but companies must give employees adequate warning before a conversion.

In a ruling that appears to have something for everyone, a U.S. appeals court in Pasadena decided Wednesday that Southern California Gas Co. did not discriminate against older employees when it converted its traditional pension to a cash-balance plan 10 years ago.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

FDIC to modify IndyMac loans

The agency plans to cut interest rates and extend payments for some in hopes of limiting foreclosures.

The regulators operating failed IndyMac Bank said Wednesday that they would try to modify about 25,000 troubled mortgages by slashing interest rates to as low as 3% for five years, extending payments over 40 years and in some cases charging interest on only part of the loan balance.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Ticketmaster to debut as independent company

Soon to lose Live Nation as its biggest client, the dominant seller of tickets looks for growth abroad and elsewhere.

Ticketmaster is set today to become a stand-alone publicly traded company, just as the dominant seller of tickets to concerts and sporting events is about to lose its biggest customer.

Source: L.A. Times - Business | 21 Aug 2008 | 7:00 am

Persimmon says housing market will not worsen

Persimmon, the UK's biggest housebuilder, bravely predicted today that the housing market would not get any worse.
Source: Latest Business News from Times Online | 21 Aug 2008 | 6:51 am

Persimmon's profits plunge on UK mortgage drought

Troubled housebuilder Persimmon has seen profits crash in the first six months of the year and warned it sees no immediate end to the mortgage drought that has brought the UK housing market to a virtual standstill.
Source: Telegraph Business | 21 Aug 2008 | 6:45 am

Cemex challenges nationalisation

Cement giant Cemex is to seek arbitration at the World Bank after Venezuela's government seizes its local subsidiary.
Source: BBC News | Business | World Edition | 21 Aug 2008 | 6:40 am

Cadbury to cut 145 NZ jobs

Cadbury Schweppes is cutting 145 jobs at its Dunedin factory from a workforce of 700. The proposal put to workers at a meeting today is that the jobs will go from 2009 through to 2010. The company is restructuring production...
Source: New Zealand Herald - Business | 21 Aug 2008 | 5:02 am

TradeMe shines in flat Fairfax NZ result

TradeMe has been the jewel in Fairfax Media's New Zealand financial results published today, with profits at the online trading site up 39 per cent for the year. The result is so good that the Australian media company, which bought...
Source: New Zealand Herald - Business | 21 Aug 2008 | 4:00 am

Denied!

It's been a bad week for online music companies.

First, Pandora, the popular online music service, said it might be forced out of business due to heavy royalty fees. Then, the much smaller Muxtape shut down, citing "a problem" with the Recording Industry Association of America, which later accused the site of hosting illegal content.

"Muxtape will be unavailable for a brief period while we sort out a problem with the R.I.A.A.," read a cryptic message on the site, which allows users to upload MP3 music files and share them in the form of a playlist.

According to an August 18 post on the site's blog, "No artists or labels have complained. The site is not closed indefinitely. Stay tuned." But as it turns out, the R.I.A.A., which represents the labels, has complained repeatedly in recent months.

The travails of Pandora and Muxtape are just the latest turns in the ongoing saga over how music should be distributed online and who, if anyone, should pay for it. The music industry's traditional business model of earning income from physical music sales is rapidly growing obsolete with the advent of digital music distribution, and rampant peer-to-peer music file-sharing.

The industry's total revenue, including both physical and digital sales, fell 11.8 percent to $10.4 billion in 2007. Since the industry peaked in 1999, more than $4 billion in revenue has gone up in smoke, as compact-disc sales have fallen off sharply and music piracy has filled much of that void.

But instead of aggressively pursuing new business models suited to the digital age, the industry seems content to play the sheriff in what feels like a quixotic attempt to stem the red tide flooding out of the labels' coffers.

In a way, Muxtape had it coming.

Since it launched earlier this year, Muxtape has had a big fat target on its back. Users upload MP3 song files in the form of playlists to the site, where others can listen to them. On the face of it, most experts believed this practice violated copyright law. But Muxtape didn't seem to care, much less heed what the R.I.A.A. says were its "repeated" attempts "to work with them to have illegal content taken down."

Today, online music services are caught between a rock and a hard place: Either play nice with industry, and fork over hefty payments for the right to offer copyrighted music, or resist, and find themselves shut down.

When imeem, an ad-supported music-based social network in San Francisco that has inked deals with all four of the major labels, signed its last agreement with Universal Music Group, the Financial Times reported that the company was forced to hand over a $20 million prepayment for the right to the label's catalog. Although imeem denied it made such a payment, there is no doubt that the labels are imposing heavy conditions on startups in exchange for access to their music.

In Pandora's case, the company said this week it is drowning under the weight of the royalty fees it must pay to the record labels and performers.

Last year, the Copyright Review Board more than doubled the per-song royalty fees that Web radio broadcasters such as Pandora must pay. According to Pandora founder Tim Westergren, the company simply cannot afford to pay the fees, which he said this year will equal 70 percent of its anticipated revenue of $25 million.

Muxtape is certainly not the first Web music company to feel the brunt of the R.I.A.A.'s tactics (remember Napster?). Earlier this year, the R.I.A.A. sued ProjectPlaylist, a similar service, for copyright infringement, charging the site "performs and reproduces plaintiffs' valuable works (and induces and enables others to do so) without any authorization whatsoever [and] without paying any compensation whatsoever."

In short, many music websites face a "damned if they do, damned if they don't" situation: Either pay the piper, or face the fat lady singing.
Related Links
Did Muxtape Lie About RIAA Pressure?
Bite of the Apple
The Pirates Can't Be Stopped


Source: Portfolio.com: Top 5 | 21 Aug 2008 | 4:00 am

More Than Car Trouble

The withdrawal of General Motors as sponsor of the Emmys and Oscars award shows is just another sign of the decline of once-mighty Detroit. But for ABC, the network airing those shows, it may be a warning of greater erosion in advertising spending.  
    
Since 2005, G.M. has cut its budget by nearly 30 percent, according to market research firm TNS Media Intelligence. On July 15, the stumbling automakers announced plans for further reductions due to a weak U.S. economy, high fuel prices, and changes to consumer-vehicle preferences. Two out of three of those catalysts broadly impact consumers' and marketers' wallets—not just the buyers and sellers of cars.
    
This fall and winter, consumers, already strained by high fuel costs and inflation in general, will have to contend with heating bills too. If retailers have a tough holiday season, marketing budgets could get the hacksaw.
    
"Marketers are going to start looking at their big investments out there—especially TV with the broadcast networks," says Steve Lanzano, chief operating officer of media planning and buying company MPG. "Unless things turn around in the economy…it's going to be a very tough time in 2009 with the broadcast networks."
    
This pessimism conflicts with news his spring when it was widely reported that advertisers committed an estimated $9.2 billion to the broadcast networks during the upfronts, the annual presale of television ad space.
This figure was considered to be slightly up from the year before.
    
But Lanzano notes that those dollars were only commitments. He's heard "on the street" that advertisers aren't following through with their original plans. "Their budgets are less than what they had on hold," he explains.
    
Leo Kivijarv, vice president of research, at market research company PQ Media, explains: "In the 2001 recession, those that cut the budgets lost market share. And they are trying not to lose that market share. So they are watching what their competitors are doing, and so they are holding back. And maybe if a competitor cuts budget, they'll cut their budget a little bit and then they won't. So everything is very last minute.”
    
The result is a very difficult market to predict. But it's not looking good for network television. Given the boost this year from the Olympics and the presidential elections, as well as the likelihood of a still weakened economy next year, PQ Media and private equity firm Veronis Suhler Stevenson predict a 6.8 percent drop in the amount marketers will spend in advertising on the broadcast networks in 2009.

Related Links
Recession? Not in the Ad Biz
Zuckervision
Ad Revenue Isn't Shrinking. It's Changing.


Source: Portfolio.com: Top 5 | 21 Aug 2008 | 4:00 am

Marsden Point refinery profits hit by higher power prices

New Zealand Refining Company said its interim profit fell 9.8 per cent from a year ago because it had to pay more for electricity. The operator of New Zealand's only oil refinery at Marsden Point in Northland said net profit of...
Source: New Zealand Herald - Business | 21 Aug 2008 | 3:00 am

Qantas profits up, but fuel prices start to bite

Qantas Airways has reported a 44 per cent rise in annual net profit, but acknowledged it is beginning to feel the effect of a slowing economy and higher fuel costs. Australia's largest airline posted a net profit of 969 million...
Source: New Zealand Herald - Business | 21 Aug 2008 | 2:42 am

Airport profits up 3pc to $113 million - bigger planes on the way

Auckland International Airport (AIA) has posted a 3.3 per cent rise in full year net profit to $113 million, due in part to strong domestic passenger growth from a more competitive local aviation scene. AIA said the result was...
Source: New Zealand Herald - Business | 21 Aug 2008 | 1:00 am

After The Close - Wednesday

LIMITED (LTD), which runs Bath & Body Works and Victoria's Secret stores, lifted Q2 EPS 35% to 27 cents ex items, beating views by 7 cents....
Source: Investor's Business Daily: BUSINESS | 21 Aug 2008 | 12:49 am

Unmanned Aircraft Helps Soldiers See Where The Enemy Is Hiding

The wars in Afghanistan and Iraq have been ideal proving grounds for U.S. forces to perform dirty and dangerous missions. The conflicts are...
Source: Investor's Business Daily: BUSINESS | 21 Aug 2008 | 12:49 am

Trends & Innovations - Wednesday

Medical debt woes grow in U.S.
Source: Investor's Business Daily: BUSINESS | 21 Aug 2008 | 12:49 am

In Brief - Wednesday

Smaller brokerages that acted as middlemen in auction-rate securities sales will be held accountable, N.Y. Att'y Gen'l Andrew Cuomo said. He said...
Source: Investor's Business Daily: BUSINESS | 21 Aug 2008 | 12:49 am

Business Briefs - Wednesday

Suntech beats Q2, guides above. The Chinese solar cell maker's EPS rose 64% to 41 cents ex items, topping views by 9 cents. Sales grew 51% to...
Source: Investor's Business Daily: BUSINESS | 21 Aug 2008 | 12:49 am

ArcelorMittal digs deep for own mine in Brazil

ArcelorMittal, the world's biggest steel-maker, moved to insulate itself from the rising cost of iron ore by buying its own mine in Brazil.
Source: Telegraph Business | 21 Aug 2008 | 12:01 am

Councils want power to offer mortgages

Council leaders are calling for extra powers to allow them to offer competitive mortgages in an attempt to rescue the ailing housing market.
Source: Telegraph Business | 21 Aug 2008 | 12:01 am

Food retailers fare poorly as discounters bite

It was another day in the doldrums for British food retailers, fresh from the publication of data showing they were losing market share to the German discount chains.
Source: Telegraph Business | 21 Aug 2008 | 12:01 am

Surprise rise in retail sales as shoppers hunt for bargains

By Angela Monaghan
Source: Telegraph Business | 21 Aug 2008 | 12:01 am

NBC Universal snaps up Carnival Films

Former BBC executive Gareth Neame has pocketed about £7½m from the sale of Carnival Films, the independent production company he joined as chief executive three years ago.
Source: Telegraph Business | 21 Aug 2008 | 12:01 am

Grant Bradley: holding pattern for airport's new top man

Incoming Auckland International Airport boss Simon Moutter will take over the controls at the close of business tomorrow of an organisation in something of a holding pattern. The former high ranking Telecom executive takes over...
Source: New Zealand Herald - Business | 21 Aug 2008 | 12:00 am

Mainfreight profits, NZ market share up

A month after a truck protest disrupted cities around the country the owner of one of the biggest truck fleets in the country has reported a strong profit. Mainfreight reported a net profit after tax and before abnormals of $8.22...
Source: New Zealand Herald - Business | 20 Aug 2008 | 11:42 pm

Asda slashes pay-as-you-go mobile phone tariff

Asda has extended the supermarket price wars to mobile phones by halving its pay-as-you-go charges while traditional rivals, including Vodafone, are raising theirs.
Source: Latest Business News from Times Online | 20 Aug 2008 | 11:01 pm

Trends & Innovations - Wednesday (Investor's Business Daily)

Investor's Business Daily - The proportion of working-age Americans facing medical debt rose to 72 mil or 41% last year, up from 58 mil or 34% in '05, according to a new survey by the nonprofit Commonwealth Fund. About half of those facing health debt have up to $2,000 in bills, while 12% have more than $4,000 in debt and another 12% have more than $8,000. The survey also found most of those with medical debt said they had exhausted their savings, with some also tapping into credit cards, home equity or cutting back on food or heat to cover health care costs.
Source: Yahoo! News: Business | 20 Aug 2008 | 10:56 pm

Blog: Is the slide in oil prices finished?

Source: L.A. Times - Business | 20 Aug 2008 | 10:52 pm

NZ Shares: Market edges lower early

The New Zealand sharemarket edged lower in early trading, despite rises in US equities and an assurance from the Reserve Bank that this country's financial system remains fundamentally sound. Around 10.15am the benchmark NZSX-50...
Source: New Zealand Herald - Business | 20 Aug 2008 | 10:33 pm

Economy sound despite finance company collapses - Reserve Bank

The New Zealand financial system remains fundamentally sound and is working well despite high profile meltdowns of several finance firms, says the Reserve Bank. Speaking to an Auckland business audience today the bank's head of...
Source: New Zealand Herald - Business | 20 Aug 2008 | 10:30 pm

Lehman's secret talks to sell 50% stake stall

Lehman Brothers, the beleaguered US investment bank, held secret talks to sell up to 50 per cent of its shares to Korean or Chinese parties during the first week of August, but failed to reach an agreement with either
Source: FT.com - US homepage | 20 Aug 2008 | 10:30 pm

Fairfax profits up 47pc but trading tough in NZ

Australian media company Fairfax Media has lifted annual profits by nearly 47 per cent but says advertising markets have slowed. Fairfax, which owns numerous New Zealand newspapers, magazines and Trade Me, today reported a net...
Source: New Zealand Herald - Business | 20 Aug 2008 | 10:00 pm

China ETFs Jump on Possible Government Help (Daily ETF Wrap-Up)

China ETFs receive a welcome boost but still remain down for the year.

Source: SmartMoney.com | 20 Aug 2008 | 9:53 pm

8 Stocks With High Returns on Invested Capital (Stock Screen)

We found eight stocks that get high marks for their returns on invested capital.

Source: SmartMoney.com | 20 Aug 2008 | 9:46 pm

VIX Index of U.S. Stock Option Prices Retreats 4.0 % to 20.42

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 9:34 pm

8 Midsize Stocks With Big-Time Ambitions (Stock Screen)

We found eight just-right stocks that are neither too large nor too small.

Source: SmartMoney.com | 20 Aug 2008 | 9:33 pm

Climate resolutions 'having big impact'

A coalition of investors and environmental groups claim climate change-related shareholder resolutions filed in the US this year achieved breakthrough results
Source: FT.com - US homepage | 20 Aug 2008 | 9:16 pm

HP earnings spur wider blue-chip rally

US stocks closed higher as better-than-expected earnings from Hewlett-Packard gave a boost to technology stocks, which combined with a fall in oil prices to draw attention away from the embattled financial sector
Source: FT.com - US homepage | 20 Aug 2008 | 8:57 pm

Harry Clark of Clark Capital Favors Technology ETFs

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 8:54 pm

China Shows Danger of Chasing Stock Returns (Ticked Off)

Investors who jumped on the Beijing Games bandwagon suffered Olympic-size losses.

Source: SmartMoney.com | 20 Aug 2008 | 8:49 pm

Stocks Finish Higher

The major indexes posted modest gains as traders returned to financials, energy and materials.

Source: SmartMoney.com | 20 Aug 2008 | 8:26 pm

Jeffrey Lacker Is Wary of Larger Regulatory Role for Fed

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 8:24 pm

Bloomberg's Pinchuk, Kempe Discuss Georgian-Russian Conflict

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 8:14 pm

Darda Says Credit Cycle Downturn Could Have Been Avoided

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 8:10 pm

Dementia Can Wreak Havoc on Family Finances (SmartMoney Magazine)

Loved ones are finding that dementia can wreak havoc on the family finances, too.

Source: SmartMoney.com | 20 Aug 2008 | 8:07 pm

Graham Burnett Says Concern for Whales Began in 19th Century

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 7:56 pm

Rendell, Weber Discuss U.S. Presidential Election

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 7:39 pm

Moscow rejects call for full Georgia pullout

Russia made clear it had no intention of bowing to Nato's calls for a total withdrawal to pre-conflict positions, saying a battalion would occupy a buffer zone around the breakaway enclaves in Georgia
Source: FT.com - US homepage | 20 Aug 2008 | 6:24 pm

Fannie and Freddie crisis deepens

The US Treasury backed away from assurances that it would not have to rescue Fannie Mae and Freddie Mac, as the crisis surrounding the mortgage groups deepened with their shares falling for a third day
Source: FT.com - US homepage | 20 Aug 2008 | 6:23 pm

Using technology to grow more food

Hugh Grant is the head of Monsanto, which creates technology to increase harvests. It's also the world's biggest producer of genetically modified seeds. Kai Ryssdal talks with Grant about the controversial topic of technology and food.
Source: Marketplace | 20 Aug 2008 | 6:20 pm

A word on capital gains; dividend taxes

If you wonder where the candidates are on dividend and capital gains taxes, commentator Glenn Hubbard can fill you in. Then, he'll explain why he thinks the government needs to keep them low.
Source: Marketplace | 20 Aug 2008 | 6:18 pm

Soundproofing the noisy kids upstairs

The loudest noises in big city apartments often come from the smallest culprits --- the kids upstairs. That's giving acoustic consultants good business. Ashley Milne-Tyte hears them out.
Source: Marketplace | 20 Aug 2008 | 6:14 pm

Has a deal been drafted to leave Iraq?

Iraqi officials say they have a draft of a deal to reduce American troops there. The White House said not so fast. Host Kai Ryssdal talks about the U.S. in Iraq with Ken Pollack, author of "A Path Out of The Desert."
Source: Marketplace | 20 Aug 2008 | 6:13 pm

ICM settles ageism suit with writers

International Creative Management has agreed to a pay $4.5 million to settle a lawsuit accusing the talent agency of discriminating against TV writers older than 40. Renita Jablonski has the story.
Source: Marketplace | 20 Aug 2008 | 6:02 pm

Ebay takes aim at rival Amazon

Online auction site eBay is lowering its seller fees for fixed-price sales to compete with rivals like Amazon. Dan Grech has more on whether users are buying into the changes.
Source: Marketplace | 20 Aug 2008 | 5:59 pm

Shareholders fear being bailout losers

Sales of Fannie Mae and Freddie Mac plummeted today on fears that if the government steps in to save the mortgage giants, taxpayers will benefit but shareholders will be wiped out. Steve Henn reports.
Source: Marketplace | 20 Aug 2008 | 5:58 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 | 20 Aug 2008 | 5:34 pm

Obama VP speculation rife as lead dwindles

Speculation over who Barack Obama would choose as his running mate over the next 48 hours was rife as one national opinion poll showed him trailing his Republican rival John McCain by 5 percentage points
Source: FT.com - US homepage | 20 Aug 2008 | 5:21 pm

Madrid air disaster kills 153

Only 19 survivors after aircraft full of holidaymakers burst into flames and crashed moments after take-off from Barajas airport
Source: FT.com - US homepage | 20 Aug 2008 | 5:13 pm

GM May Need $7.3 Billion of Capital, Lehman Says

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 4:21 pm

Coronado of Barclays Says a GSE Intervention `Likely'

Source: Bloomberg - All Podcasts | 20 Aug 2008 | 3:39 pm

Reversal of Fortune

For evidence of just how ruthless this summer has been in the global markets, look no further than Harbinger Capital Partners.

This year, the hedge fund run by Philip Falcone has had nothing but stellar news to report to shareholders. Thanks to bets against subprime mortgages, returns for 2007 were 116 percent. Returns through the end of June were 40 percent after Harbinger cashed in on its short position in Bear Stearns.

But now Harbinger shareholders are being sorely reminded that what goes up must inevitably come down.

Nearly two-thirds of the hedge fund's gains in the first half of the year were erased in July and the first two weeks in August, reports James Mackintosh on the Financial Times' Alphaville blog. The fund was stung by the sudden reversal of the long-energy-short-financials trade that has hurt so many hedge funds this summer.

But before you shed a tear for Falcone's investors, it bears noting that the fund is still up 14 percent year-to-date. That's cause for envy among his peers. The global index of funds tracked by Hedge Fund Research is down 5.5 percent so far this year.

Harbinger's performance during the past six weeks underscores the tremendous turbulence in the global markets, and it doesn't bode well for those fund managers less fortunate than Falcone during the first half of this year.

Harbinger has had some high-profile hits and misses so far this year. It waged war with the New York Times Co. and successfully pushed Arthur Sulzberger to give it two seats on its expanded board. So far, though, any change Harbinger hoped to inspire has had little effect on shareholders. Shares in the New York Times Co. have steadily declined since the proxy war ended in March, and it's now being pressured to cut its dividend.

More recently, Harbinger took a 4.9 percent stake in Cablevision, the New York-area cable company controlled by the Dolan family. Since then, the company announced plans to explore strategic options for some of its divisions and plans to begin paying shareholders a regular dividend.

And earlier this week, Harbinger sought approval to double its 15.6 percent stake in the iron-ore company Cleveland-Cliffs in order to prevent its proposed $8.1 billion takeover of Alpha Natural Resources.  

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Source: Portfolio.com: Top 5 | 20 Aug 2008 | 2:00 pm

Rupert's Year

Rupert Murdoch has had a pretty good year, right? Riding high after his successful takeover of Dow Jones and launching the Fox Business Network?

Well, there was that revenue miss at Fox Interactive, the parent of MySpace. And shares of News Corp., like those of other big media companies, have been battered of late, sliding 36 percent over the last 12 months.

So it actually may not be that surprising that Murdoch's compensation for 2008 fell 14 percent from a year ago, according to a regulatory filing.

Still, that decline was largely the result of an accounting change affecting his retirement income (as if he will ever retire).

And Murdoch, who warned earlier this month of a "much more difficult economic environment" for News Corp., will not be wanting. He earned $27.5 million for the year, including $17.5 million in cash bonuses, up from $15.8 million in bonuses.

News Corp. ties its executive bonuses to earnings-per-share growth, which was 25 percent in fiscal 2008. Peter Chernin, News Corp. president, received $11.3 million.

Joseph Weisenthal on PaidContent.org notes that another big winner at News Corp. was Roger Ailes, who received a cash bonus of $4.5 million, up from $3 million the previous year, and stock wards of $9.1 million. For the launch of the Fox Business Network last October, Ailes received 333,333 Class A shares of News Corp.

Is three his lucky number, or what?



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Source: Portfolio.com: Top 5 | 20 Aug 2008 | 12:30 pm

The Fannie and Freddie Trigger

What will it take for the government to step in finally and bail out Fannie Mae and Freddie Mac?

The stock market has clearly indicated that a bailout is inevitable, as the share prices of the two mortgage giants continue to slide toward zero. On Tuesday, Freddie Mac had to pay an unusually rich premium to sell $3 billion of five-year notes.

Dawn Kopecki of Bloomberg News reports that the test may be the ability of Fannie and Freddie to repay some $223 billion of bonds that come due by the end of next month.

Fannie has about $120 billion of debt that matures through September 30, while Freddie has $103 billion, Bloomberg says.

Moshe Orenbuch, an analyst with Credit Suisse in New York, told Bloomberg that their ability to roll over the debt "is the single-most-important factor to their ability to remain liquid."

But the auction of Freddie Mac notes on Tuesday showed that investors—Asian investors in particular, who have historically been the biggest buyers of Fannie and Freddie securities—are becoming more leery, making the rollover of the debt far from certain.

The Across the Curve blog notes that central banks and other investors are worried about the uncertainty over whether the Treasury Department has any intention of using its new authority to pump billions of dollars into the mortgage giants:

"Some are troubled by the recent statements of Secretary Paulson that he is not eager to use his new powers. Some have extrapolated from his statements that he is only prepared to exercise his powers in an emergency. What constitutes an emergency?"

And how expensive would a bailout be?

Joshua Rosner, an analyst at the consulting and research firm Graham Fisher, said on Tuesday that the two big mortgage buyers would need to raise at least $40 billion, but probably closer to $100 billion, the New York Post reports.

But perhaps a bailout is not inevitable. Or perhaps when it comes, it will not wipe out preferred shareholders. The Accrued Interest blog points out that preferred shares of Fannie and Freddie rose sharply in the last hour of trading on Tuesday:

"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."

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Source: Portfolio.com: Top 5 | 20 Aug 2008 | 11:30 am