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Lehman buy-out prospects boost Wall StreetUS stocks rose as markets responded to a speech from Federal Reserve Chairman Ben Bernanke and shares in shares in Lehman shot up on more reports of a possible buy-out of the bankSource: FT.com - US homepage | 22 Aug 2008 | 2:30 pm Wall St extends gains after Bernanke comments (Reuters)
Source: Yahoo! News: Business | 22 Aug 2008 | 2:23 pm Fed Speech Leaves Stocks HigherTraders welcomed Ben Bernanke's renewed commitment to 'act as needed' to hold prices stable.Source: SmartMoney.com | 22 Aug 2008 | 2:22 pm Bernanke Talks Down Economic Expectations & Inflation
It seems he isn't contemplating higher interest rates despite a jump in inflation as inflationary pressures will come down later in the year from lower commodity prices. Bernanke believes that stable commodity prices and slower global growth will remove much of the inflationary pressures of the first half of 2008. Bernanake noted that the increased stability in the dollar and the decline in commodity prices should all culminate with a slower economy to lower prices. He did call the price outlook highly uncertain and noted that Fed officials will act as necessary to make sure prices moderate. It also seems that that Bernanke is starting to understand that traditional methods alone aren't going to fix today's problems and thinks officials need to consider ways to improve the financial infrastructure. He wants to see better settlement of credit-default swaps, and improvements on swaps and repos, and wants more mechanisms for the Fed to deal with potential defaults even in non-banking institutions. If you want to read the full speech you can read that here. Still, you have to wonder if this is just a prelude to another earnings warning OUT OF THE GOVERNMENT......
Jon C. Ogg Source: 24/7 Wall St. | 22 Aug 2008 | 2:19 pm Fed's Bernanke: Inflation outlook "uncertain"JACKSON HOLE, Wyoming (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke on Friday called the U.S. inflation outlook "highly uncertain", and said central bank policy-makers would do what they must to preserve price stability.Source: Reuters: Business News | 22 Aug 2008 | 2:17 pm Boeing says it may pullout of the tanker raceBoeing Co. may not make a bid for a $35 billion contract to build the Air Force’s next-generation aerial-refueling jet unless the Pentagon agrees to give the manufacturer six additional months to submit an updated proposal, The Wall Street Journal reports Friday.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 2:17 pm Market Snapshot: U.S. stocks open firmly higher ahead of BernankeU.S. stocks were firmly higher at the open on Friday, with investors, hopeful for a fix to the problems at mortgage giants Fannie Mae and Freddie Mac, focusing on Federal Reserve Chairman Ben Bernanke, who is due to give a speech in Jackson Hole, Wyo.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 2:17 pm Stocks open higher on prospect of Lehman buyoutNEW YORK -- Stocks rose sharply in early trading as oil retreated from this week's rally and as speculation grew that Lehman Brothers Holdings Inc. could be sold. The Dow Jones industrial average rose more than 100 points.Source: L.A. Times - Business | 22 Aug 2008 | 2:14 pm Bernanke expects inflation to 'moderate'The chairman of the Federal Reserve welcomed the recent weakness in the oil price and the strengthening dollar and said he expected inflation to "moderate" in coming months at an annual address to the world's central bankersSource: FT.com - US homepage | 22 Aug 2008 | 2:14 pm Airline Stocks: Oil reverses direction, falls below $120 a barrelAirline stocks were en route to take back losses in prior-day trading as oil reversed direction and fell below $120 a barrel.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 2:12 pm Bernanke: Financial storm not overFederal Reserve Chairman Ben Bernanke said Friday that the problems in the nation's financial markets persist and still threaten the economy.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 2:09 pm The Fed: Text of Bernanke speechHere is the prepared text of a speech given by Federal Reserve Chairman Ben Bernanke at the annual Jackson Hole conference.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 2:09 pm 24/7 Wall St. Most Overpaid CEO Of The Day: Pacific Sunwear (PSUN) CEO Sally Frame Kasaks
Based on the performance of the stock and the business, those numbers are extraordinarily high. After posted flat revenue of $312 million for the last quarter, and operating income of only $3.7 million, Pacific Sunwear's shares fell 31% today to just above $5. The company has a 52-week high of $18.44. The stock is off over 60% during the last year. Four firms downgraded PSUN today: Robert W. Baird, Friedman Billings, Roth Capital and BB&T Capital. The most significant cause of the ratings revisions was that the company dropped guidance for the third and fourth quarters. The CEO's pay stayed the same. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Aug 2008 | 2:06 pm Oil falls as dollar gainsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 2:05 pm The Fed: Soothing words from Bernanke at Jackson HoleFederal Reserve Chairman Ben Bernanke says inflation is on track to moderate in coming months.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 2:05 pm Buffett predicts game over for Fannie and FreddieWarren Buffett predicted that "the game is over" for Fannie Mae and Freddie Mac, America’s two biggest mortgage financers, as independent companies, as the world’s richest man gave warning that the US economy would remain in the doldrums for at least five months.Source: Latest Business News from Times Online | 22 Aug 2008 | 2:01 pm The Corporate ConventionCorporations have signed on with Democrats and Republicans to help them through their political conventions. The confabs will cost at least $100 million to produce this year, most coming from private sources. Here are some of the companies playing a role (and paying up) to be in Denver and St. Paul.Democratic National ConventionDates: August 25–August 28 Location: Denver, Colorado Comcast Comcast has pledged $5 million to be the cable TV and video-on-demand provider to the convention. C.E.O. Brian Roberts contributed to Democrats Hillary Clinton ($2,300) and Joseph Biden ($2,100), as well as Republican Rudy Giuliani ($1,000). Level 3 Communications Level 3 Communications will provide live streaming in high definition, a first for a political convention. C.E.O. James Crowe gave $2,300 each to Democrats Barack Obama, Joseph Biden, Christopher Dodd, and Bill Richardson. ShadowTV The official video-monitoring service provider, ShadowTV, will provide the Democratic National Committee with all-digital, continuous access to live and archived television content. United Airlines As the official airline, United Airlines will provide reservations services and reduced fares for delegates traveling to and from the convention. PromoModule Republican National Convention Dates: September 1–September 4 Location: Minneapolis-St. Paul, Minnesota Northwest Airlines The G.O.P. Convention’s official airline, which is headquartered in Minneapolis. UStream.TV The Mountain View, California, company will provide live video-streaming of the convention. Google/YouTube YouTube conducted a “Why are you a Republican in 2008?” contest on behalf of the G.O.P. But C.E.O. Chad Hurley contributed $2,300 to Democrat Barack Obama. Travel Technology Group The Republican Convention’s official housing bureau, Travel Technology Group, will manage the hotel block and coordinate a reservation system that covers roughly 16,000 rooms in more than 100 hotels. At Both Conventions AT&T AT&T isn’t releasing its 2008 convention spending, but says it has made a monetary contribution to both the Democratic and Republican host committees, while it plans to provide devices and services only to the Democrats. C.E.O. Randall Stephenson gave $2,300 to John McCain. Microsoft Microsoft is giving $1.8 million in technology and consulting services to both conventions. Former chairman Bill Gates gave $2,300 apiece to Hillary Clinton and Barack Obama. C.E.O. Steve Ballmer gave $1,000 to the political action committee Every Republican is Crucial. Qwest Communications Qwest Communications is providing $6 million in cash and in-kind donations to give the conventions high-speed internet. C.E.O. Edward Mueller contributed $2,300 to John McCain. General Motors General Motors, the official vehicle provider to both conventions since 1980, is donating 450 vehicles to the D.N.C. and 295 to the R.N.C.—400 hybrids among them. C.E.O. Rick Wagoner contributed $2,100 to Mitt Romney’s G.O.P. campaign. PR Newswire The official newswire services provider for both conventions, PR Newswire will disseminate press releases, media advisories, and speech texts. Related Links Don't Count Out Republican Donors G.O.P. Donors Watch and Wait Hillary Edges Obama on $$$ Source: Portfolio.com: Top 5 | 22 Aug 2008 | 2:00 pm Party LinesWhen the back-to-back party conventions get underway Monday, the usual hordes of partisans in funny hats, political journalists, and memorabilia merchants will be joined by one group you don't often see in the political arena—corporations.The Democratic and Republican confabs in Denver and Minneapolis-St. Paul, respectively, will attract 16 "corporate providers." By law, corporations can't contribute directly to the political process and can't, as organizations, give to the presidential candidates. But they can pony up funds for the conventions, this year estimated to cost $50 million apiece, $16 million coming from taxpayers and the rest from the private sector. Not every advertiser will be writing checks to the political parties; most have signed agreements to provide services and manpower in addition to cash. The tab for sponsorship: up to $5 million, in the case of Comcast's deal to be the cable TV and video-on-demand provider to the Democratic National Committee. General Motors, Microsoft, and other advertisers will appear at both conventions, but a few companies have chosen sides, and not always the ones their C.E.O.'s endorse. AT&T, for example, made a monetary contribution to both conventions but is only providing services and devices to the Democratic convention in Denver. This despite the fact C.E.O. Randall Stephenson gave $2,300 to John McCain's Republican presidential campaign. PromoModuleAnd YouTube's C.E.O., Chad Hurley, gave the same amount to Barack Obama's Democratic campaign even though YouTube will only be a presence at the Republican convention in Minneapolis. As early as July, the online video provider began stirring up buzz for the G.O.P. bash as it asked Americans to post video responses to the question "Why are you a Republican in 2008?" The winner was awarded a day on the trail with McCain's campaign and a ticket to the convention, where the winning video will be shown. While the Republican National Convention Committee called the contest a way to "empower supporters," it was also clearly a marketing technique for YouTube. What does a corporation get for its cash? First and foremost, exposure. General Motors has had a presence at both conventions since 1980, but this year the company will show off its hybrids and flex-fuel vehicles. When the conventions are over, the 745 G.M. cars that were used will be sent to dealerships or auctioned off. Microsoft will plug its new Silverlight platform, an application that will deliver video coverage of the convention in high definition. (It's the same application NBC used to broadcast the 2008 Beijing Olympics.) Microsoft will also provide attendees with large touchscreen kiosks that dispense the latest convention and local city information—transportation routes, hotel locations, restaurant guides, and meeting schedules. It's an effort by Microsoft to make the convention experience user-friendlier. Analysts say a company's image shouldn't be jeopardized by being tied to a major political event like the conventions. Consumers pay little attention to what a corporation (or its officers) is doing on a personal or political-action committee basis, says branding consultant Robert Passikoff. "The only time it matters is when it's a human brand like Martha Stewart," he says. Related Links Idle Chatter: McCain, Bob Woodruff, Facebook... Google Extends Web Search Lead Microsoft's Supreme Search Screw-up Source: Portfolio.com: Top 5 | 22 Aug 2008 | 2:00 pm These Fidelity funds rate a buy on manager strengthJim Lowell, editor of the Fidelity Investor newsletter, says that mutual fund investors are better off focusing on managers than funds and need to then give strong managers the chance to deliver through market cycles rather than trying to time the market.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 1:58 pm Alpharma rejects $1.4 billion bid from KingKing Pharmaceuticals says fellow specialty drugmaker Alpharma has rejected its takeover bid of $1.4 billion in cash.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 1:57 pm 10 smart ideas for a greener houseSome of the smartest green ideas are decidedly low-tech. Fact is, the sustainable homes of the future look a lot like those of the past.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 1:56 pm Futures Movers: Crude falls for first day in four as dollar risesCrude-oil futures dropped Friday for the first time in four days, retreating from a 5% rally in the previous session, as a stronger U.S. dollar pushed down dollar-denominated commodities prices.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 1:56 pm John Lewis takes a hit from armchair OlympiansJohn Lewis has blamed its latest fall in sales on anxious students waiting for exam results and the nation’s fixation with the Olympics.Source: Latest Business News from Times Online | 22 Aug 2008 | 1:55 pm Investors await BernankeStock futures rose early Friday, ahead of a speech from Federal Reserve Chairman Ben Bernanke.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 1:53 pm Lehman shares leap more than 13% on buyout talkNEW YORK (MarketWatch) - Lehman Bros. shares rose more than 13% in early trading on Friday after a Korean bank in talks with the troubled Wall Street firm was quoted as saying that one of the options on the table is an outright acquisition.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 1:53 pm Europe Markets: European shares climb as banks rise, oil declinesEuropean shares gain modestly on Friday morning, with banks taking back some losses and a broker upgrade helping Deutsche Post, although sentiment was checked by crude-oil prices building on a $5.62-a-barrel surge from the previous session.Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 1:51 pm Markets await Bernanke as central bankers gather (Reuters)
Source: Yahoo! News: Business | 22 Aug 2008 | 1:46 pm Schaeffler to sell back excess Continental sharesHANOVER, Germany (Reuters) - Ball bearings maker Schaeffler will sell to banks any excess shares it gets in a tender for up to 49.99 percent of the shares in automotive supplier Continental , Schaeffler said on Friday.Source: Reuters: Business News | 22 Aug 2008 | 1:45 pm Boeing may withdraw from U.S. tanker bidWASHINGTON (Reuters) - Boeing Co confirmed on Friday it may withdraw from a $35 billion competition for new aerial refueling aircraft unless the Pentagon agrees to give it six months to submit a new bid.Source: Reuters: Business News | 22 Aug 2008 | 1:43 pm Market opens up on Buffett commentsNEW YORK (Reuters) - Stocks opened higher on Friday after investor Warren Buffett said he has no bets against the dollar and stocks are more attractive now than a year ago.Source: Reuters: Business News | 22 Aug 2008 | 1:40 pm UBS Says Wachovia Unlikely to Raise `Large' Amounts of CapitalSource: Bloomberg - All Podcasts | 22 Aug 2008 | 1:40 pm The world's most expensive streetsEvery city has one - a retail thoroughfare that houses the most exclusive stores. Real estate slowdown or not, these luxury corridors are still thriving - for now, at least.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 1:40 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 | 22 Aug 2008 | 1:38 pm Why Hollywood loves a horrific economyWith "The Dark Knight" setting a record for highest-grossing opening weekend and "Pineapple Express" and "Step Brothers" also doing well, 2008 is on track for a record box office summer - suggesting once again that the movie business may be countercyclical to the economy.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 1:32 pm 3 Easy Ways to Simplify Your Financial Life (Cover Story)Here are tips for streamlining your life -- and profiting along the way.Source: SmartMoney.com | 22 Aug 2008 | 1:31 pm Halifax to close 53 estate agents branches in housing market downturnHalifax is to close 53 of its estate agents' branches as a result of the housing market downturn.Source: Telegraph Business | 22 Aug 2008 | 1:29 pm These homes for sale suckMold, maggots and piles of festering trash - no wonder home prices are in freefall.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 1:25 pm A Bull on Energy, a Bear on Nearly Everything Else (Today From Barron's)Natural resources are about the only thing this Canadian investment manager likes.Source: SmartMoney.com | 22 Aug 2008 | 1:25 pm Rising costs biting for chocolate firmsMore snack firms announce rising prices and smaller products in an effort to beat the credit crunch.Source: BBC News | Business | World Edition | 22 Aug 2008 | 1:21 pm Verizon, Google close to mobile search deal: report (Reuters)
Source: Yahoo! News: Business | 22 Aug 2008 | 1:21 pm Verizon, Google close to mobile search deal: report(Reuters) - Mobile service provider Verizon Communications Inc. is nearing an agreement with Google Inc. on a wide-ranging partnership, the Wall Street Journal said, citing people familiar with the situation.Source: Reuters: Business News | 22 Aug 2008 | 1:21 pm Warren Buffett Talks Financials, Markets, Economy & Politics (BRK-A, WFC, AXP, JPM, FNM, FRE, BUD, CNQ, BNI, BRK-B)
He didn't say which one it was, but out of Wells Fargo (NYSE: WFC) and American Express (NYSE: AXP) he said he has added to his position recently because of added weakness. We would predict that it was American Express as this one is down more, although looking at a 3-month chart shows that in mid-July (after his last filing dates) Wells Fargo was actually down more than American Express. Interestingly enough on the financial systems he said that it has turned out that Wall Street was a nudist beach where too much was going on. He did say that another Bear Stearns failure is possible, although he wouldn't give any names. He also said he agrees with JPMorgan Chase (NYSE: JPM) Jamie Dimon that people who spread false rumors to take down financial institutions should go to jail. On, Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), Warren Buffett said that these could be completely wiped out for the common holder, although the actual entities won't likely be allowed to fail entirely. He thinks private investment alone won't be able to save these. On Anheuser Busch (NYSE: BUD), Buffett said he sold some of his holdings before the merger at $61 or $62 as the company was not wanting to be acquired. As far as his recent trip with Bill Gates to the Canadian oil sands, he said he was interested in the idea but isn't making an immediate investment there. Their visit to Canadian Natural Resources Limited (NYSE: CNQ) properties has driven shares the last couple of days, so if he's not going to put in cash there might be some profit taking there on that word. Another note he made was that he wished he would have bet on the railroads like Burlington Northern (NYSE: BNI) much sooner than he did. You can see Buffett's FULL EQUITY HOLDINGS from just last week. On the political front, he did say he believes that Obama is the better choice for the future. Mr. Buffett said he would not actually be attending the Democratic Convention, and he also said that he did not ask Obama specifics on oil and taxes to avoid putting him on the spot. And he even keyed in about John Edwards having an affair and lying about it while he was raising cash should be grounds for a class action suit against him to get a refund for contributions. He also said he is against any windfall taxes against the oil companies and he is against that notion despite Obama's plan. He didn't go so far as saying he thinks it will get thrown out, but said many notions get thrown out in politics. On the U.S. Dollar, he has no direct currency plays right now. He's no longer betting directly against the U.S. Dollar with currency plays. He said he gets that by owning foreign companies now (and many Buffett holdings have currency exposure). Buffett is also worried that inflation may continue rising and this is a real problem for the Fed. This was a rather long interview that CNBC's Becky Quick was able to get today. As far as whether anything he said was earth shattering or full of any new great insight, well that is for you to decide. We are also providing a link to the full live blog from CNBC if you want to read further into his exact comments.
Jon C. Ogg Source: 24/7 Wall St. | 22 Aug 2008 | 1:16 pm Buffett warns Fannie Mae and Freddie Mac investors stand to lose lots of moneyBillionaire investor Warren Buffett claims America's struggling state-backed mortgage finance companies Fannie Mae and Freddie Mac "are too big to fail" but shareholders could "lose a lot of money".Source: Telegraph Business | 22 Aug 2008 | 1:15 pm Buffett warns Fannie Mae and Freddie Mac investors stand to lose lots of moneyBillionaire investor Warren Buffett claims America's struggling state-backed mortgage finance companies Fannie Mae and Freddie Mac "are too big to fail" but shareholders could "lose a lot of money".Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 1:15 pm Buffett: We're still in a recessionRead full story for latest details.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 1:11 pm Buffett sees economy weak into '09NEW YORK (Reuters) - Warren Buffett said the U.S. economy is unlikely to improve before 2009, and there was a "reasonable chance" that Fannie Mae and Freddie Mac shareholders would be wiped out though the companiesthemselves are too big to fail.Source: Reuters: Business News | 22 Aug 2008 | 1:10 pm Top 5 Mistakes Home Sellers Make (Consumer Action)Trying to sell your home is hard enough without making these costly errorsSource: SmartMoney.com | 22 Aug 2008 | 1:09 pm Buffett sees economy weak into '09 (Reuters)
Source: Yahoo! News: Business | 22 Aug 2008 | 12:51 pm Oil slips after spurt on Russia tensionsLONDON (Reuters) - Oil fell more than a dollar on Friday, a day after its biggest jump in three months as part of a wider commodities rally spurred by a slump in the U.S. dollar, and mounting tension between the United States and Russia.Source: Reuters: Business News | 22 Aug 2008 | 12:49 pm AnnTaylor profit falls, tops view (Reuters)Reuters - AnnTaylor Stores Corp , the women's apparel retailer, reported higher-than-expected quarterly profit on Friday, citing tight control of inventories and costs.Source: Yahoo! News: Business | 22 Aug 2008 | 12:40 pm AnnTaylor profit falls, tops viewNEW YORK (Reuters) - AnnTaylor Stores Corp , the women's apparel retailer, reported higher-than-expected quarterly profit on Friday, citing tight control of inventories and costs.Source: Reuters: Business News | 22 Aug 2008 | 12:40 pm Freddie, Fannie: No ticking time bombThe market is betting Henry Paulson is about to put on his black hat again. But the Treasury secretary may not be so easily typecast in the saga of the government-sponsored mortgage finance companies.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 12:25 pm ISE takes stake in Direct EdgeThe International Securities Exchange, one of the largest US options markets, took an almost 32 per cent stake in Direct Edge, an alternative equities trading platformSource: FT.com - US homepage | 22 Aug 2008 | 12:09 pm ISE takes stake in Direct EdgeThe International Securities Exchange, one of the largest US options markets, on Friday took an almost 32 per cent stake in Direct Edge, an alternative equities trading platform, in a move that highlights...Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 12:09 pm 6 solutions for scary home heating billsStaying warm this winter could get expensive. While there's not much homeowners can do about energy prices, there are some ways to reduce your dependence on traditional fuels.Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 12:07 pm Google Holds Up "V" SignHave Google and Verizon Communications finally kissed and made up?The two heavyweights, last seen sparring over opening up the wireless spectrum, are in talks over a deal that would make Google the default search on Verizon devices and give the search giant a piece of the ad revenue, the Wall Street Journal reports. A deal could eventually cover Verizon's Web portal and its FiOS TV service, the Journal says. Any agreement would be a turnaround from their public clashes after Google lobbied the government to open up access to the wireless spectrum. Verizon fiercely fought back that effort. In June, Russ Mitchell noted that with the acquisition of Alltel and with an agreement with the Federal Communications Commission, Verizon looked prepared to keep throwing its weight around. Wireless providers are looking for an edge in services amid fierce competition. Verizon Wireless—a joint venture between Verizon Communications and Vodafone of Britain—has talked to other possible search partners in the past, including Microsoft, the Journal says. A deal is equally important to Google "Google wants closer integration with carriers like Verizon so it can enhance the relevance of the ads it shows—for example, by making them sensitive to a user's location," the Journal says. Rival Yahoo has deals with several wireless providers. But Rafat Ali on mocoNews.net says that such deals offer only short-term gains: "As phones open up, users will be able to use whichever search engine they desire, not the ones deemed official by the carriers." And for those who are worried about Google's crushing dominance in search and its inroads into media, there is now a modified search engine that lets you search without getting results from Google sites like Knol, Blogger, and YouTube. Yes, it's Google minus Google. Related Links Google Extends Web Search Lead Big V Gets Bigger - Watch Out, Google Microsoft's Supreme Search Screw-up Source: Portfolio.com: Top 5 | 22 Aug 2008 | 12:00 pm UK economic growth at standstillUK economic growth ground to a halt between April and June, official figures show, heightening fears of a recession.Source: BBC News | Business | World Edition | 22 Aug 2008 | 11:50 am Aon buys reinsurer Benfield in 935m dealUS insurer Aon is to buy London-based reinsurance broker Benfield in a 935m agreed deal.Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 11:50 am Aon buys reinsurer Benfield in £935m dealUS insurer Aon is to buy London-based reinsurance broker Benfield in a £935m agreed deal.Source: Telegraph Business | 22 Aug 2008 | 11:50 am UK recession: The question now is how deep it will beThe longest period of unbroken economic growth since the dawn of the Industrial Revolution is over.Source: Telegraph Business | 22 Aug 2008 | 11:42 am UK recession: The question now is how deep it will beThe longest period of unbroken economic growth since the dawn of the Industrial Revolution is over.Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 11:42 am Aon agrees £844m offer for BenfieldShares in Benfield jumped sharply after the reinsurance broker announced an agreed £844m offer from Aon, the US insurance groupSource: FT.com - US homepage | 22 Aug 2008 | 11:40 am Aon agrees 844m offer for BenfieldBenfield on Friday agreed to an offer from Aon, the US insurance group, that values the reinsurance broker 350p a share or 844m and represents a 29 per cent premium to the previous close.Shortly after...Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 11:40 am Feeling flatThe symbolism of the UK economy stagnatingSource: BBC News | Business | World Edition | 22 Aug 2008 | 11:39 am Top Pre-Market Analyst Downgrades (AVNX, AVNXD, BKC, LVS, LOGI, PSUN, FACE, SHOR, SMA, TLB)These are some of the top analyst calls we are seeing in pre-market trading this Friday morning:
Jon C. Ogg Source: 24/7 Wall St. | 22 Aug 2008 | 11:36 am Top Pre-Market Analyst Upgrades (AMED, CNQR, GTIV, ORLY, TU)It is fairly thin in analyst coverage today, but these are some of the Friday morning analyst calls we are seeing before the open:
Jon C. Ogg Source: 24/7 Wall St. | 22 Aug 2008 | 11:33 am America's Most Overpaid CEOs (MER)(CBS)(AXP)(MS)(NBR)
While these figures are for last year, a number of the companies on the list have had remarkably poor stock market returns over the last two years, making the pay packages unseemly. John Thain at Merrill Lynch (MER) made $83.1 million. He has not been at Merrill for two years, but he has done nothing to arrest the slide in the value of the company's shares which are down 70%. Leslie Moonves at CBS (CBS) made $67.6 million. CBS is off over 40% during that last two years. Kenneth Chenault at American Express (AXP) made $57.1 million and his stock is off 30% during the last 48 months. John Mack at Morgan Stanley (MS) made $41.7 million and the firm's stock has dropped 45% in two years. Eugene Isenberg of Nabor Industries (NBR) made $44.6 million. At least his shares are up almost 10% over the last 48 months. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Aug 2008 | 11:31 am Canadian Cosmetics Firm MISTURA BEAUTY Signs Celebrity Jockey and VOGUE Model Chantal Sutherland as Spokeswoman for Their 6-in-1 Beauty Solution(TM)OTTAWA, Aug. 22 /PRNewswire/ - Mistura Beauty has announced that it has signed celebrity jockey and VOGUE model Chantal Sutherland as the new face for their Mistura...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:30 am Buffett says economy's troubles will continueBillionaire investor Warren Buffett said Friday the economy continues to be in a recession, by his definition, and will continue to be for at least several more months. Buffett said...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:27 am Manager at French engineering firm Alstom arrestedSwiss police arrested a former manager of French engineering giant Alstom in a corruption and money-laundering probe and raided offices of the group in Switzerland, prosecutors said Friday.Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:27 am India's Tata says may shift Nano car plant due to protestsIndia's Tata Motors threatened Friday to pull production of the world's cheapest car from Marxist-ruled West Bengal state if violent protests continued against the plant. ...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:21 am Manager at French engineering firm Alstom 'in graft probe'Swiss police arrested a former manager of French engineering giant Alstom in a corruption and money-laundering probe and raided offices of the group in Switzerland, prosecutors said Friday.Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:20 am Aon agrees to buy Britain's Benfield for $1.6BAon Corp., the world's biggest insurance broker, said Friday it has agreed to buy Britain's Benfield Group Ltd. for almost $1.6 billion in cash. Chicago-based Aon said combining...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:16 am Recovering banks help FTSELondon equities moved higher on Friday, with the banking sector receiving support after several sessions of steep selling. The FTSE 100 was 1.2 per cent higher at 5,432.3, a rise of 62 points. The FTSE...Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 11:07 am Demolition derbies take hit from high scrap pricesMud is flying, smoke and steam are rising, and the deafening roar of V-8 engines all but drowns out 5-year-old Shelby Scott's screams. "Get out of there! Get out of there!" she yells at...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:00 am Severstal Resources Reaches Agreement to Acquire PBS CoalsAcquisition of Coal Group to Create Value for Severstal Shareholders; Builds Vertically Integrated Operations in U.S. MOSCOW, Aug. 22 /PRNewswire-FirstCall/ -- Through...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 10:55 am Stocks point higher ahead of Bernanke speechWall Street appeared headed for a slightly higher open Friday, with stock futures rising ahead of a speech by Federal Reserve Chairman Ben Bernanke on the topic of financial stability. ASource: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 10:54 am UK economic growth ground to a halt in Q2British economic growth ground to a halt between April and June, ending more than 15 years of continuous expansion, the government said Friday, as many fear the country is headed for...Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 10:52 am Analysts Play Game Of Cutting Investment Bank Ratings (MER)(C)(BAC)(MS)(GS)(LEH)
The contest to see how fast analysts can reset their expectations for the financial industry becomes more muddled every day. The fact of the matter is that most of the revised figures are for the third quarter of this year. In other words, they do not look out very far. They are the products of analysts with limited minds and no appetite for risk. This does not do their institutional or retail clients any good. By the time a new downward revision hits the market, the shares which are being re-evaluated have already lost more of their value. The primary weakness of Wall St. research remains that most calls come late in the game. Researchers spend so much time with analysis and so little time exercising common sense that their value to the investment population has become remarkably limited. Perhaps it is not much to say that the IMF, Warren Buffett, and George Soros looked at the credit markets months ago and said they would get worse and that bank write-offs would soar. Perhaps their calculations were simply done on the back of envelops and would not pass the scrutiny of Wall St. research directors. The credit crisis has been marked by two things. The first is that it continues to get worse even when there are many predictions that it will get better. The second is that investors continue to lose money in financial stocks to some extent because analysts are very late in making negative predictions. A great deal of damage has been done to the global financial system this year. The reputation of Wall St. research has been hurt just as badly. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Aug 2008 | 10:52 am Halifax to close 53 estate agentsThe Halifax says it is closing 53 of its estate agency branches with the loss of 100 jobs as the housing downturn bites.Source: BBC News | Business | World Edition | 22 Aug 2008 | 10:50 am Oil price rallies over tensions with RussiaCrude oil prices have climbed sharply this morning, after soaring overnight in their biggest rally for three months, as tensions between the West and Russia escalated.Source: Latest Business News from Times Online | 22 Aug 2008 | 10:37 am Google (GOOG) Wins The Mobile Search Wars
The fact of the matter is that Google has probably already won the race of search engine market share on wireless devices. Microsoft and Yahoo! can cut deals to act as the initial search option for a large number of carriers. According to The Wall Street Journal, AT&T (T) will use the Yahoo! product on its MEdia Net wireless portal. But, that hardly matters. PCs often come with a default search function. Sometimes those are from Yahoo! or Microsoft. But, the minute most people use their browsers for search, they usually load the Google URL.. Google is viewed as the superior product, which may be why it has 60% to 70% of the PC market in the US. Mobile applications will not be any different. Handset browsers function in much the same way as they do on PCs. The consumer will use his preference, not what the carrier has set as the first option. Google's reputation as a better search product will carry over to the mobile handset world. The venue may be changing, but the customer's brand preference will not. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Aug 2008 | 10:19 am Sanyo in talks to supply hybrid car batteriesSanyo, the Japanese electronics giant, said today that it is in talks with six car makers about the supply of batteries for fuel-efficient hybrid vehicles — one of few growth areas in the automotive industry.Source: Latest Business News from Times Online | 22 Aug 2008 | 10:18 am Evidence Of A Fannie Mae (FNM) And Freddie Mac (FRE) Resurrection
Freddie Mac is actually in the field trying to sell shares to private equity firms. The fact that it has even begun the process is encouraging. The fact that anyone will listen to the company's pitch is at least a hopeful sign. According to The Wall Street Journal, "Senior management has been talking with a wide array of possible investors this week," said David Palombi, Freddie Mac's chief spokesman." The Treasury could thwart the discussions by insisting that any money put in by the government would wipe out new common and preferred shareholders. That would completely negate any chance of private funds coming in and would not do much to serve tax-payers who have already seen tens of billions of dollars put into the financial sector. At the very least, Treasury could tell new money that, in the event of a full bail-out, it will be cashed out at a price no less than what it puts in now. That takes most of the risk out of any private re-financing, but it could save the government billions of dollars. Why should the citizen who is already likely to be burdened with higher taxes be asked to do what the private sector can? Building a safety net for new money put into Fannie Mae and Freddie Mac is not too much to ask. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Aug 2008 | 10:04 am Investors pulling out of RussiaRussia sees foreign investment fall as investors become more nervous following the recent conflict with Georgia.Source: BBC News | Business | World Edition | 22 Aug 2008 | 10:02 am Halifax to close a quarter of its estate agentsHalifax is closing a quarter of of its estate agents branches as a result of the housing market downturn, the banking group said today.Source: Latest Business News from Times Online | 22 Aug 2008 | 9:55 am Boeing's (BA) Bogus Move
Now that Boeing is getting a new chance, the firm says it needs six months to re-submit the details of its offer to build the plane. The Defense Department wanted the bids in by October 1. BusinessWeek has speculated that delaying the process will help Boeing, because a Congress and White House ruled by Democrats might be more favorable to the company's cause. If a financial magazine can figure out a maneuver which is so transparent, so can almost anyone else. There is little evidence that the first round of bidding was unfair. Boeing's lobbying efforts got the process back to the starting line. The company does not need six months to see if it can adapt one of its current aircraft so that it can operate as a tanker. It saw the specifications in the first round of the evaluation of the Air Force's needs. Another look will not change things. Boeing's delaying tactics don't serve the process, which is to get a new tanker into service as soon as possible. If Boeing can't hit the new deadline, it should be taken out of the process. Northrup has given a legitimate bid once and says it can hit the new bid date set by the Defense Department on time. Boeing would like to pretend incompetence, but it won't fool anyone. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Aug 2008 | 9:48 am Pound tumbles as UK growth comes to a haltThe pound tumbled in early trade on Friday as data showed that the British economy had unexpectedly ground to a halt in the second quarter.UK gross domestic product was unchanged on the quarter in the...Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 9:48 am Pound tumbles as UK growth comes to a haltSterling fell sharply on Friday as data showed that the British economy had unexpectedly ground to a halt in the second quarterSource: FT.com - US homepage | 22 Aug 2008 | 9:48 am Heineken's S&N hit by consumer downturnHeineken's bid to further increase its dominance of the UK beer market has hit a snag, with the Dutch brewer giving warning today that its £10 billion joint acquisition of Scottish & Newcastle (S&N) with rival Carlsberg may not add to earnings per share in 2009 as previously predicted.Source: Latest Business News from Times Online | 22 Aug 2008 | 9:43 am U.K. Economy Grinds to Halt in QuarterBritains economy unexpectedly came to a standstill in the second quarter in its weakest performance since the recession of the early 1990s, revised official data showed.Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 9:42 am Oil holds above $120 on Russia tensionsOil prices held above the $120 a barrel level on Friday amid ongoing geopolitical tensions following Russia's decision on Thursday to suspend military co-operation activities with Nato in response to a...Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 9:41 am Rentokil Initial's profits halveRentokil Initial says interim profits are down by more than half and warns that a turnaround in its fortunes will take time.Source: BBC News | Business | World Edition | 22 Aug 2008 | 9:39 am German Auto Parts Maker Acquires Larger RivalSchaeffler has won control of a larger rival, Continental, using an unusual derivatives transaction that analysts said could leave other German firms vulnerable to similar raids.Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Aug 2008 | 9:38 am Yukos boss's parole plea rejectedA Russian court rejects an appeal for parole from former Yukos boss Mikhail Khordokovsky.Source: BBC News | Business | World Edition | 22 Aug 2008 | 9:32 am Demand for buses and trains drives Arriva profitsArriva, the bus and train operator, has reported a 40pc increase in profit on the back of rising customer demand and the contribution from the UK CrossCountry rail franchise.Source: Telegraph Business | 22 Aug 2008 | 9:29 am Demand for buses and trains drives Arriva profitsArriva, the bus and train operator, has reported a 40pc increase in profit on the back of rising customer demand and the contribution from the UK CrossCountry rail franchise.Source: Telegraph Business | 22 Aug 2008 | 9:29 am Aon makes $1.6 billion offer for BenfieldLONDON (Reuters) - Aon Corp , the world's largest insurance broker, has made a recommended cash offer for Benfield valuing the UK-listed broker at 844 million pounds ($1.6 billion).Source: Reuters: Business News | 22 Aug 2008 | 8:53 am KDB says buying Lehman a possibility (Reuters)
Source: Yahoo! News: Business | 22 Aug 2008 | 8:47 am KDB says buying Lehman a possibilitySEOUL (Reuters) - State-run Korea Development Bank said on Friday Lehman Brothers was one of its options for acquisitions, reviving expectations that the U.S. investment bank might still bring in a large investor.Source: Reuters: Business News | 22 Aug 2008 | 8:47 am Britain's economy grinds to a haltBritain's economy is teetering on the brink of recession as official figures showed that output ground to a halt between April and the end of June. This is the weakest performance since 1992, the tail-end of the last recession, and will increase pressure on the Bank of England to cut interest rates to prevent a full-blown economic slump.Source: Latest Business News from Times Online | 22 Aug 2008 | 8:42 am Bradford & Bingley's underwriters agree to hold shares for 20 daysThe underwriters of Bradford & Bingley's (B&B) rights issue, which was labelled a partial flop after investors took up only 28 per cent of the shares, have agreed not to dispose of the remainder of the shares for 20 days.Source: Latest Business News from Times Online | 22 Aug 2008 | 8:37 am Mortgage rates 'at 2007 levels'Mortgage rates are back now to where they were in August 2007 at the onset of the credit crunch, according to website Moneyfacts.Source: BBC News | Business | World Edition | 22 Aug 2008 | 8:32 am More banks settle securities caseMerrill Lynch, Goldman Sachs and Deutsche Bank are the latest banks to settle with regulators over the sale of risky securities.Source: BBC News | Business | World Edition | 22 Aug 2008 | 7:38 am Arriva profits 40% higher on bus and train boomThe worsening economy combined with soaring petrol prices is driving people out of their cars and on to public transport, according to Arriva, the bus and train operator, which today reported a 40 per cent increase in pre-tax profit.Source: Latest Business News from Times Online | 22 Aug 2008 | 7:32 am Olympics boost for ad giant WPPGlobal advertising giant WPP says spending on the Olympic Games and US presidential election will boost revenues in 2008 .Source: BBC News | Business | World Edition | 22 Aug 2008 | 7:29 am Roundup August 22: WPP optimistic as first-half profits rise 15pcWPP expects spending behind the US Presidential Election and the Beijing Olympics to boost revenues this year as it reported a 15pc rise in first-half profits to £338.5m pre-tax on revenues up 14pc to £3.34bn.Source: Telegraph Business | 22 Aug 2008 | 7:27 am Wine Spectator drinks a hearty glass of blushThe magazine praises a Milan restaurant that doesn't exist. Wine critic and author Robin Goldstein cooked up the hoax.Milan's Osteria L'Intrepido restaurant won Wine Spectator magazine's award of excellence this year despite a wine list that features a 1993 Amarone Classico Gioe S. Sofia, which the magazine once likened to "paint thinner and nail varnish." Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am Disney's rights to young Mickey Mouse may be wrongFilm credits from the 1920s reveal imprecision in copyright claims that some experts say could invalidate Disney's long-held copyright.He is the world's most famous personality, better known in this country than anyone living or dead, real or fictional. Market researchers say his 97% recognition rate in the U.S. edges out even Santa Claus. Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am U.S. Mint runs out of 1-ounce gold coins as demand jumpsGold-market bulls couldn't buy publicity much better than this: The U.S. Mint says it has run out of 1-ounce American Eagle gold coins because of rocketing demand.Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am Mickey's many rolesThe mouse has been the Disney company savior, product promoter and copyright target.Eighty years ago, Mickey Mouse saved Walt and Roy Disney's young company after they lost control of a popular earlier character, Oswald the Lucky Rabbit. Mickey -- who initially bore some resemblance to the rabbit -- was kept secret from all but a trusted handful of employees, because most of the staff was expected to follow Oswald out the door. Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am 'House Bunny' could be box-office leader'Death Race,' another new release, should be in the running for a top-3 finish.Universal Pictures is gunning for No. 1 at the box office this weekend with the high-octane thriller "Death Race." Focus Features, the studio's specialty arm, just hopes to rev up some buzz for "Hamlet 2," its irreverent comedy opening in limited release. Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am The 2009 Honda Fit: Counterintuitive charmThe best subcompact on the market is slightly larger, vastly stiffer, noticeably more quiet and comfortable, and every bit as dorky-looking as the previous edition. But what a view from the cockpit.Honda is the guy selling umbrellas on the corner when it starts to rain. The lady selling flowers when you're late for an anniversary dinner. The vendor selling fire extinguishers when your underwear bursts into flames. Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am Airlines' fees for surfboards are dinging surfersCarriers are charging as much as $300 a board, leaving some wave riders grounded.Swelling airline fees are wiping out traveling surfers' hopes of catching the next big wave. Source: L.A. Times - Business | 22 Aug 2008 | 7:00 am WPP wants financial clarity from GfK on Taylor Nelson Sofres bidWPP, the world’s largest communications group, wants the Takeover Panel to force GfK, the German market research company with which it is vying for control of rival Taylor Nelson Sofres, to make clear whether its original financial backer is still in place.Source: Latest Business News from Times Online | 22 Aug 2008 | 6:48 am Typhoon shuts Hong Kong's Hang SengHong Kong's stock market, banks and offices were closed today as Tropical Storm Nuri lashed the city with rain and strong winds.Source: Telegraph Business | 22 Aug 2008 | 6:29 am Currency: Dollar retreats from tentative recoveryThe New Zealand dollar moved slightly lower today after reaching two week highs in early trading. By 5pm today the kiwi was buying US71.87c from US72.06c at 8am and US71.32c at 5pm yesterday. It retreated from the firm open...Source: New Zealand Herald - Business | 22 Aug 2008 | 5:24 am Govt keeps cheap milk for Fonterra rivalsGovernment has baulked at making changes to the supply of "cheap" raw milk to Fonterra's rivals - which would have raised retail prices - in advance of the coming general election. " The time is not right for increases in the price...Source: New Zealand Herald - Business | 22 Aug 2008 | 4:00 am Michael Hill expands in US with 17-store buyMichael Hill International is buying 17 stores in the United States for about US$5 million ($7 million) from the Chapter 11 bankruptcy of Whitehall Jewelers Holdings. Most of stores were clustered in and around Chicago with two...Source: New Zealand Herald - Business | 22 Aug 2008 | 1:06 am In Brief - ThursdayMicrosoft (MSFT) has tapped comedian Jerry Seinfeld for its next Windows ad campaign as the software giant tries to brighten its image and recover...Source: Investor's Business Daily: BUSINESS | 22 Aug 2008 | 12:40 am Business Briefs - ThursdayHeinz beats on higher pricing. The ketchup maker said its Q1 EPS rose 14% to 72 cents, topping views by 6 cents. Sales rose 14% to $2.58 bil,...Source: Investor's Business Daily: BUSINESS | 22 Aug 2008 | 12:40 am Trends & Innovations - ThursdayVehicles become Wi-Fi hot spotsSource: Investor's Business Daily: BUSINESS | 22 Aug 2008 | 12:40 am Green Goes Mainstream In New U.S. WorkplacesAmong American entrants, 459 have taken the gold in a sport rising among building developers.Source: Investor's Business Daily: BUSINESS | 22 Aug 2008 | 12:40 am After The Close - ThursdayNORDSON (NDSN), a maker of spray guns, said its Q3 EPS rose 29% to 93 cents, missing views by 5 cents. Sales rose 12% to $288 mil. It sees Q4 EPS...Source: Investor's Business Daily: BUSINESS | 22 Aug 2008 | 12:40 am Network General Acquisition Gives NetScout A Good Hand To PlayNow that NetScout Systems is united with Network General, customers using their diagnostic network tools won't have to split their business...Source: Investor's Business Daily: BUSINESS | 22 Aug 2008 | 12:40 am Diageo to open 'green' whisky distillery in ScotlandThe traditional is mixing with the renewable at Scotland's first new major whisky distillery for 30 years.Source: Telegraph Business | 22 Aug 2008 | 12:01 am Pick up a Penguin reader with online datingQuiet, bookish types will have the chance to plot their own romantic stories as publisher Penguin launches a dating website in conjunction with online dating giant Match.com.Source: Telegraph Business | 22 Aug 2008 | 12:01 am Port of Tauranga expands under shadow of Auckland merger talkPort of Tauranga has announced an expansion of its container terminal area, just days after Ports of Auckland said it might be interested in buying the Tauranga container business. Today Port of Tauranga said plans were under way...Source: New Zealand Herald - Business | 21 Aug 2008 | 11:50 pm Turners Auctions half year profits up 55pc to $812,000Turners Auctions has announced a 55 per cent rise in first half net profit to $812,000, earned in the face of a slumping used car market. The current environment was the most challenging experienced in the industry for many years,...Source: New Zealand Herald - Business | 21 Aug 2008 | 11:45 pm Bank trio in auction rate dealsMerrill Lynch, Goldman Sachs and Deutsche Bank agreed to buy back up to $14.5bn of auction-rate securities and pay $162m in fines to resolve investigations into whether they misled people who bought the debt instrumentsSource: FT.com - US homepage | 21 Aug 2008 | 11:10 pm Hanover's rescue plan due this monthCompletion of a restructuring plan for Hanover Finance is being targeted for the end of the month, chairman Greg Muir says. In a letter to investors this week, Muir also reiterated that shareholders in the company had said they...Source: New Zealand Herald - Business | 21 Aug 2008 | 11:00 pm Economy - Thursday (Investor's Business Daily)Investor's Business Daily - Rates on an average 30-year mortgage fell to 6.47% in the week ended Aug. 21 from 6.52% the week before, Freddie Mac said. The 15-year fixed-rate mortgage fell to 6%, down from 6.07%, while the 5-year adjustable rate dipped to 5.99% from 6.02%. The 1-year adjustable rate rose to 5.29%. Mortgage yields, though dipping in recent weeks, are much higher than they were in the spring. Home loan applications are at a 71/2-year low, the Mortgage Bankers Assoc. said Wed.Source: Yahoo! News: Business | 21 Aug 2008 | 10:45 pm Blog: Public rush for gold coins drains U.S. MintSource: L.A. Times - Business | 21 Aug 2008 | 10:33 pm Housing gaffe sparks campaign rowThe tone of the presidential race deteriorated from uncivil into name-calling as Barack Obama and John McCain directly questioned each other's integrity and competence to govern.Source: FT.com - US homepage | 21 Aug 2008 | 10:14 pm Port's Tauranga bombshell seen as attempt to restart merger talksInterest by Ports of Auckland in buying the container business of rival Port of Tauranga is "kite-flying", says First NZ Capital. Ports of Auckland managing director Jens Madsen made the surprise announcement during a meeting to...Source: New Zealand Herald - Business | 21 Aug 2008 | 10:00 pm Architect Ben Van Berkel, Pianist Ohlsson, Noguchi MuseumSource: Bloomberg - All Podcasts | 21 Aug 2008 | 9:44 pm 8 Stocks With Dividends and Growth Potential (Stock Screen)We found eight stocks with appealing dividends and appreciation potential.Source: SmartMoney.com | 21 Aug 2008 | 9:43 pm Author Harris Says Fed More Transparent Under BernankeSource: Bloomberg - All Podcasts | 21 Aug 2008 | 9:38 pm Media : Henry has Close Up in his sightsPaul Henry returns to TV One's Breakfast on September 5 but has ambitions to front the evening magazine show, Close Up. The Close Up presenter, Mark Sainsbury, is safe for now but it is understood TVNZ will consider options at...Source: New Zealand Herald - Business | 21 Aug 2008 | 9:30 pm Michalik Says ETFs Are Used to Bet on Decline of StocksSource: Bloomberg - All Podcasts | 21 Aug 2008 | 9:27 pm VIX Index of U.S. Stock Option Prices Retreats 2.9% to 19.82Source: Bloomberg - All Podcasts | 21 Aug 2008 | 9:25 pm Airport expects to hold steady courseAuckland International Airport faces falling long-haul passenger numbers and increasing costs over the coming year but is forecasting a profit about the same as that announced yesterday. The airport reported a 3.3 per cent rise...Source: New Zealand Herald - Business | 21 Aug 2008 | 9:00 pm 8 Stocks Flying Under Wall Street's Radar (Stock Screen)Get to know these eight unknown stocks before Wall Street lets the cat out of the bag.Source: SmartMoney.com | 21 Aug 2008 | 8:53 pm Oil ETFs Jump on Increase in Crude (Daily ETF Wrap-Up)Oil ETFs pop over concerns Russia and U.S. relations are straining.Source: SmartMoney.com | 21 Aug 2008 | 8:41 pm Flat FinishThe major indexes ended the day barely changed as traders remained cautious about the financial sector.Source: SmartMoney.com | 21 Aug 2008 | 8:08 pm Avoid Tapping Your Nest Egg in a Down Year (Genworth Retire Retirement)Beginning your retirement during a down year for the market can have dire consequences.Source: SmartMoney.com | 21 Aug 2008 | 7:34 pm Texting experts for an Internet searchA new search company isn't using algorithms to find answers on the Internet -- it's using humans instead. Text in a question and someone will text you right back. Dan Grech checks it out.Source: Marketplace | 21 Aug 2008 | 7:00 pm Investors quit Russia after Georgia warInvestors pulled their money in the wake of the Georgia conflict at the fastest rate since the 1998 rouble crisis, new figures show. Russian debt and equity markets have also suffered sharp fallsSource: FT.com - US homepage | 21 Aug 2008 | 6:57 pm Sponsors went for the gold at OlympicsSponsors spent a lot of money to have giant versions of their logos at Olympic venues. Was it money well spent? What lessons can be learned for London in 2010. Kai Ryssdal talks with Scott Tong in Beijing.Source: Marketplace | 21 Aug 2008 | 6:41 pm Unblocking news on the InternetWhen China filtered news and blocked Web sites during the Beijing Olympics, it helped increase concern about censorship on the Internet. Commentator Jonathan Zittrain says there are ways to fight back.Source: Marketplace | 21 Aug 2008 | 6:40 pm Clean energy sector is heating up fastNever mind the sagging economy, investment in American clean energy companies reached an all-time high last quarter. But is this just another bubble waiting to burst? Curt Nickisch reports.Source: Marketplace | 21 Aug 2008 | 6:39 pm Repayments haltedCompass Capital has stopped repaying investors, blaming deteriorating credit and property markets. In a letter, dated August 13, the company told investors that borrowers had struggled to repay their loans which, in turn, affected...Source: New Zealand Herald - Business | 21 Aug 2008 | 6:30 pm Fannie and Freddie crisis easesThe crisis surrounding Fannie Mae and Freddie Mac eased as both the equity and debt of the two US mortgage financiers ralliedSource: FT.com - US homepage | 21 Aug 2008 | 6:01 pm Congress cuts off 'robo-calling'Those calls you get with recorded messages? They're known as "robo-calls" and they're legal, even if you're on the Do-Not-Call list. Nancy Marshall Genzer reports on how Congress is closing that loophole.Source: Marketplace | 21 Aug 2008 | 5:37 pm Seinfeld to do Microsoft ads? Get out!Comedian Jerry Seinfeld will be the pitchman for Microsoft Windows in an upcoming ad campaign. Can Jerry help the software giant shed its image and become cool? Jeremy Hobson reports.Source: Marketplace | 21 Aug 2008 | 5:20 pm Union has leverage in Boeing talksPension and health care costs are on the table as Boeing sits down with its machinists union. But costly delays in delivery of its Dreamliners are putting pressure on Boeing to avoid a strike. Steve Henn reports.Source: Marketplace | 21 Aug 2008 | 5:18 pm Even higher food prices on the horizonPrices have eased at the gas pump lately, but not in the grocery stores. We're seeing the highest food price inflation in 20 years, and the government's forecasting more increases in 2009. John Dimsdale reports.Source: Marketplace | 21 Aug 2008 | 5:12 pm Phillips, Ninua, Sulikashvili Discuss Russian Attack on GeorgiaSource: Bloomberg - All Podcasts | 21 Aug 2008 | 4:33 pm Arch Coal Raised to `Buy' from `Neutral' at UBSSource: Bloomberg - All Podcasts | 21 Aug 2008 | 2:32 pm Desperately Seeking S.W.F.Why would a sovereign wealth fund that poured $5 billion into Merrill Lynch eight months ago want to invest even more money after seeing Merrill's shares fall by more than half?Easy. It's practically a sure thing. Temasek, Singapore's second-largest sovereign wealth fund, is the biggest shareholder in Merrill Lynch, the troubled investment bank that has written down $50 billion worth of losses since the credit crisis began. And it might not be done investing yet. At a speech in Singapore today, Temasek's chairman indicated the fund would consider putting even more money in Merrill, according to Bloomberg. Last month, Temasek committed another $900 million to Merrill, which would put its ownership above the regulatory limit of 10 percent for foreign investors. It's currently pending approval. The reason why investing in Wall Street's troubled banks is a sure thing is that many of these sovereign wealth funds, with such deep pockets, are able to garner such good terms in their deals that they are as close to risk-free as you can get in this otherwise lethal sector of the market. The banks' desperation for more capital puts the foreign investors in the driver's seat. Lehman Brothers is just the latest to learn that, according to several reports, funds in Korea and China walked away from the firm because Lehman wouldn't agree to their terms. If you need a sugar daddy that badly, chances are he'll come with his own demands. Temasek and the other early investors in Merrill Lynch, like the pension fund of New Jersey, were made whole on their initial investment when Merrill sold more stock to the public in July. Singapore used its size to negotiate an anti-dilution clause that was triggered by the subsequent stock offering. Merrill ended up paying Singapore $2.5 billion in July, virtually erasing its losses despite the stock price being cut in half. The risk now is that Singapore and Merrill's other investors converted their preferred shares to Merrill common stock, and they're prohibited from selling it until January. That's okay if you're a large, diversified fund in this for the long haul like Temasek is. But it was enough to make Bill Clark, head of New Jersey's pension fund investments, refrain from investing more capital, he said in an interview last week. Temasek says its assets grew by 13 percent in the 12 months that ended in March, to $131 billion. With girth like that, capital-hungry banks might be willing to agree to just about anything. Related Links Rumor Sourcing of the Day Wall Street Requiem UBS: Still Entrenched in the Art World Source: Portfolio.com: Top 5 | 21 Aug 2008 | 2:00 pm
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According to
The collapse in the shares of Freddie Mac (FRE) and Fannie Mae (FNM) was arrested yesterday. At one point, both stocks were up and Fannie Mae ended the day in the plus column. It has begin to occur to the market that the managements of the two companies are not lying. The firms might just be viable without a significant bail-out. Their share price action shows that at least someone is buying the story.
