The Millard House: A rare example of Frank Lloyd Wright's textile-block design

Natural light streams through the open floor plan of La Miniatura in Pasadena

La Miniatura -- built in Pasadena in 1923 -- is remarkable, even by Frank Lloyd Wright standards. One of only four of the famed architect's local textile-block designs, this renovated home is considered by some to be the most romantic of that style, which features an open floor plan, a seamless indoor-outdoor flow and roof terraces for outdoor living, popularized in the early 20th century.

Source: L.A. Times - Business | 24 Aug 2008 | 7:00 am

Cellphones may make wallets obsolete

The financial functionality of mobile phones is poised to explode.

Ever write a check while shopping and sweat over whether the check would clear? A growing number of banks are offering a new and fairly painless way to eliminate the guesswork. ¶ The solution fits in your pocket. ¶ Eight of the 10 biggest U.S. banks now provide at least basic services on cellphones, allowing account holders to check their balances by tapping away on their tiny keypads. ¶ Millions of U.S. consumers have signed up for mobile banking as those services grow increasingly useful. Depending on your bank, your phone and your wireless plan, you might be able to approve bill payments, transfer money and receive alerts when balances get low, all while riding the bus. ¶ "Most consumers aren't aware that it's out there yet, but the day is coming," said Mark Schwanhausser, an analyst with Javelin Strategy & Research in Pleasanton, Calif. "Phones are ever-ready, always on and always with you, and you can't match that with a computer." ¶ In one sign of where things are headed, Visa Inc. launched a pilot program last week with eight major banks to send text alerts to 2,000 consumers within seconds after unusual transactions. The customers could then cancel their cards before anything else happens. ¶ All the services are handy, free -- and may be just the beginning. The banks hope that getting you used to making payments with a phone will lead to the day when you'll be happy to buy things with it, as folks already do in Japan and South Korea. Phones there act as a virtual wallet, enabling their owners to ring up purchases with a wave of their handset near a sensor.

Source: L.A. Times - Business | 24 Aug 2008 | 7:00 am

Answers, not IOUs, for Social Security

W hatever happened to Social Security?

Source: L.A. Times - Business | 24 Aug 2008 | 7:00 am

How I Made It: Richard David and Mark Held of Mark's Garden

The gig: Co-owners of Mark's Garden floral shop in Sherman Oaks, which is known for its work on weddings, including those of Avril Lavigne, Gwen Stefani, Heidi Klum and, last weekend, Ellen DeGeneres. Since the business opened in July 1993, the team has worked on each post-Academy Awards Governor's Ball. The shop handles more than 100 daily orders with eight delivery trucks, 45 full-time employees and a multimillion-dollar annual budget for flowers.

Source: L.A. Times - Business | 24 Aug 2008 | 7:00 am

Teacher needs financial education

Debt threatens Gayla Baker's goals: to buy a home, pay for her two sons' schooling and secure her retirement.

Gayla Baker teaches special education to troubled young people at a state correctional facility, and she expects her students to be disciplined about their studies and their behavior.

Source: L.A. Times - Business | 24 Aug 2008 | 7:00 am

Auto industry seeks $50B in loans from Congress

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 23 Aug 2008 | 12:38 pm

US regulators shut Kansas bank

Federal regulators on Friday shut down Kansas bank Columbian Bank and Trust Company, which was struggling with losses on soured real estate loans.

Source: Business and financial news - CNNMoney.com | 23 Aug 2008 | 12:18 pm

Personal Finance Daily: The week's 10 best Personal Finance stories: Aug. 18-22

In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Aug. 18-22:

Source: MarketWatch.com - Top Stories | 23 Aug 2008 | 12:01 pm

These homes for sale suck

Mold, maggots and piles of festering trash - no wonder home prices are in freefall.

Source: Business and financial news - CNNMoney.com | 23 Aug 2008 | 11:42 am

CNN.com: Obama picks Biden as running mate

Source: Business and financial news - CNNMoney.com | 23 Aug 2008 | 11:27 am

Auto Review: 2009 Toyota Corolla -- A redesigned, nifty gas sipper

While we had fun with the recent Rolls-Royce and love Corvettes and the Lotus, we realize that there are folks out there that just want to get to work, run some errands and not stop at the gas station or the repair shop very often. Toyota realizes that too and now offers the redesigned 2009 Corolla.

Source: MarketWatch.com - Top Stories | 23 Aug 2008 | 10:00 am

India's Kingfisher Airlines goes international with London route

India's Kingfisher Airlines has announced it will launch its first international flight from the high-tech southern city of Bangalore to London next month. The daily non-stop
Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Aug 2008 | 7:26 am

L.A. stadium owner AEG is playing to win in foreign arena: China

The company wants to develop and run stadiums throughout the basketball-crazed country.

For Tim Leiweke, president of the Los Angeles sports-marketing company AEG, the race for gold in China begins after the Olympics.

Source: L.A. Times - Business | 23 Aug 2008 | 7:00 am

In this crisis, few are too big to fail

The calamity in the financial sector will be remembered for the household names it damaged or took down. T he mess in the U.S. financial...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

Bernanke: Financial crisis taking toll on economy

JACKSON, Wyo. -- Federal Reserve Chairman Ben Bernanke said today the financial crisis that has pounded the country -- coupled with higher inflation -- is taking a toll on the economy and poses a major...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

More Labor Day travelers expected to use rail, bus

Fewer travelers are expected to fly or drive for the holiday weekend, and AAA says the trend points to Americans seeking alternative means of transportation. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

Century City Doctors Hospital begins shutting down

The facility, whose emergency room will close Saturday, has filed for liquidation. Financially troubled Century...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

Gigante supermarkets to become El Super

The seven stores will take the new name Tuesday as the result of a takeover by Bodega Latina aimed at getting a greater share of the Latino market. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

More Labor Day travelers expected to use rail, bus

Fewer travelers are expected to fly or drive for the holiday weekend, and AAA says the trend points to Americans seeking alternative means of transportation.

Fewer travelers are expected to fly or drive for the Labor Day holiday, with more opting instead for trains and buses as the weak economy and high fuel prices alter the vacation habits of Americans.

Source: L.A. Times - Business | 23 Aug 2008 | 7:00 am

L.A. stadium owner AEG is playing to win in foreign arena: China

The company wants to develop and run stadiums throughout the basketball-crazed country. For Tim Leiweke, president...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

In this crisis, few are too big to fail

The calamity in the financial sector will be remembered for the household names it damaged or took down.

T he mess in the U.S. financial system is making me nostalgic for the dot-com collapse of 2000-2002.

Source: L.A. Times - Business | 23 Aug 2008 | 7:00 am

Fed Chairman Ben Bernanke sees unemployment and weak growth as bigger problems than inflation

The central bank chief says he and other Fed members believe inflation will ease on its own. Prices may be rising...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

Bernanke sees unemployment and weak growth as bigger problems than inflation

The Federal Reserve chairman says he and other Fed members believe inflation will ease on its own. Prices may...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

Interest rates on bank CDs rising

Rates on certificates of deposit are up since April. Some big banks offer better than 4%. Your bank wants your...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 7:00 am

Biden is Obama pick for running mate: reports

LOS ANGELES (MarketWatch) -- Veteran Delaware Sen. Joseph Biden is expected to be Barack Obama's pick to be his running mate on the Democratic presidential ticket, various reports said late Friday.

Source: MarketWatch.com - Top Stories | 23 Aug 2008 | 6:21 am

Century City Doctors Hospital begins shutting down

Unable to find a buyer, the facility files for financial liquidation. It will close its emergency room and discharge or transfer patients.

Financially troubled Century City Doctors Hospital gave up hope of finding a buyer and began shutting down Friday, according to hospital executives. Officially, the facility said it would cease operations late next week.

Source: L.A. Times - Business | 23 Aug 2008 | 5:38 am

Democrat Obama picks Biden as running mate

Democratic presidential candidate Barack Obama has picked Joseph Biden, chair of the US Senate foreign relations committee and a respected voice on international affairs, as his running mate
Source: FT.com - US homepage | 23 Aug 2008 | 5:31 am

Market Snapshot: Stocks to focus on financials, housing data

Stocks next week will take their cues from fresh data on housing and consumption, while the fate of mortgage giants Freddie Mac and Fannie Mae, as well as the future of investment firm Lehman Brothers, will likely keep investors on their toes.

Source: MarketWatch.com - Top Stories | 23 Aug 2008 | 4:01 am

Stocks to Watch: Stocks in focus for Monday

Among the companies whose shares are expected to see active trade in Monday's session are Freddie Mac, American International Group Inc. and Sears Holdings Corp.

Source: MarketWatch.com - Top Stories | 23 Aug 2008 | 4:01 am

Priceless Victories

After the Olympics are over, Michael Phelps will continue his busy schedule obligations with endorsement deals with Speedo, Omega, and Kellogg's, estimated to pay him $5 million per year. Shawn Johnson will shill for Coca-Cola, among others, and get paid around $1 million.

Irving Saladino, who similarly took the gold (in the long jump) for Panama—its first in history—will get a new sports complex named for him, while Cable & Wireless and Fiesta Casino have launched campaigns using his image, and several presidential candidates—it's an election year in Panama, too—scrambled to put together television ads congratulating Saladino. None of this, however, translates into endorsement bucks for the 24-year-old. And his sponsor, Nike, has no promotional plans for the athlete.

It's not an unusual story, experts say. Medalists from smaller countries have a much harder time spinning Olympic gold into marketing gold—even those who have big corporate sponsors. Because there is little precedent for deals outside the U.S., they are rarely discussed, and the market for foreign athletes, save for a few breakouts such as, possibly, Jamaica's Usain Bolt, is limited in the U.S. But with greater attention to marketing deals, that could change.

"Is Irving ripe for marketing purposes? I am totally convinced he is," says Ariel Meilij, a spokesperson for Nike Panama, via email. "But not much has been done around him." Part of the problem, Meilij explains, is that the Panama office lacks a marketing budget—its main focus is regional sales.

Further complicating the potential for an endorsement is the nature of Saladino's relationship to Nike. For reasons even Meilij doesn't seem to understand, the owner of Irving's sponsorship contract is not Nike Panama, but Nike Holland—Meilij isn't clear on what the terms and obligations of it are.

PromoModuleIf chances to cash in at home are slim for athletes like Saladino, the possibility of getting a U.S. endorsement are practically one in a million. "The first thing is the sport," says Marc Ippolito, president of the sports marketing agency Burns Entertainment & Sports. "Everyone knows Phelps—if you look at the names of people who have won in swimming over the years, they're always able to capitalize. But I can guarantee nine out of 10 people can't tell you who's competing in shotput. The sport dictates how much airtime each athlete is getting—and the airtime you're getting is a huge part of it." As for someone like Saladino, he says, "The only way I can see someone like that being in a U.S. commercial would be in a Nike montage."

Ippolito is referring to the spot titled "Courage" that Nike released just before the Games got underway. The commercial splices shots of historical greats like Michael Jordan and Lance Armstrong with footage of athletes from Portugal, South Africa, and Afghanistan. Thirty-one athletes are crammed into the minute-long ad, so their screen time is fleeting. Still, spots like "Courage"—and Adidas' recent "Gold Is Never a Given" print campaign, which featured Ethiopian runner Haile Gebreselassie—signal that an openness to a global aesthetic in ads is on the rise, only just not with individuals. "It works in a limited time, like during the Olympics," says Ippolito. "But it's not about the people in the commercial, it's about the overall feel and them trying to pull at your heartstrings."

Of course, it's not impossible for a big star from a tiny country to enchant international ad execs. Ippolito recalls the Jamaican bobsled team from the 1988 Winter Olympics in Calgary; the bobsledders shilled for Fiat and several beverage companies before inspiring the 1993 Disney film Cool Runnings. So does Ippolito see anyone in Beijing who could sell Stateside? "I could see Usain Bolt having some impact in the U.S.," he says. Bolt is the Jamaican sprinter who won gold and set new world records in both the men's 100-meter and 200-meter races. He is sponsored by Puma. "He's running in premiere races, he's getting compared to Carl Lewis, he's got the personality," says Ippolito. "And come on—Bolt. He's got the name."
Related Links
Is Olympic Gold the New Black?
Lenovo's Consumer PCs
Idle Chatter: Swimming in Olympic Gold


Source: Portfolio.com: Top 5 | 23 Aug 2008 | 4:00 am

European Lender Thrives With Personal Touch

International Personal Finance serves as a lender to people of modest means in Central and Eastern Europe with little or no access to conventional banks.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Aug 2008 | 3:51 am

Japan's economic package to reach 73 billion dollars: report

Japan is set to unveil a stimulus package worth eight trillion yen (73 billion dollars) in a bid to shore up the economy, a report said on Saturday. Economic fiscal policy...
Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Aug 2008 | 3:38 am

Riding A Demographic Wave

Elizabeth Adams was in her mid-50s when her doctor made the call: She needed a hip replacement.
Source: Investor's Business Daily: BUSINESS | 23 Aug 2008 | 1:12 am

Trends & Innovations - Friday

Wireless power advance made
Source: Investor's Business Daily: BUSINESS | 23 Aug 2008 | 1:12 am

Payment Transaction Firm Profits From Growth Of Online Buying

Retailers are bracing for a slowing economy and tight-fisted shoppers. But U.S. consumers are still buying, particularly online.
Source: Investor's Business Daily: BUSINESS | 23 Aug 2008 | 1:12 am

Eyes To The Future: Alcon Sharpens R&D

Alcon CEO Cary Rayment likes to keep his company focused on churning out new products -- lots of them.
Source: Investor's Business Daily: BUSINESS | 23 Aug 2008 | 1:12 am

Business Briefs - Friday

Petrobras spent $1 bil on drilling. Brazil's state-run oil company said it has spent $1 bil on exploratory oil wells since '05 in an offshore area...
Source: Investor's Business Daily: BUSINESS | 23 Aug 2008 | 1:12 am

In Brief - Friday

For The Record: A chart of Baidu that ran in Fri.'s Investor's Corner on page B14 should have referred to the stock's 2007 run-up.
Source: Investor's Business Daily: BUSINESS | 23 Aug 2008 | 1:12 am

Small Kansas bank is 9th failure this year

WASHINGTON (Reuters) - Bank regulators closed Columbian Bank and Trust Company on Friday, the ninth U.S. bank to fail this year as the weakening economy and falling home prices take their toll on financial institutions.

Source: Reuters: Business News | 23 Aug 2008 | 12:35 am

CORRECTED: Regulators close ninth bank this year

Corrects to $622 million, paragraph 2, adding dropped word
Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Aug 2008 | 12:33 am

Law Offices of Howard G. Smith Announces Update to the Shareholder Lawsuit Against FCStone Group, Inc.

BENSALEM, Pa., Aug. 22 /PRNewswire/ -- Law Offices of Howard G. Smith announces a September 15, 2008, deadline to move to be a lead plaintiff in the securities class...
Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Aug 2008 | 12:30 am

Stagnation drives pound down to 12-year low

The pound dropped to the lowest level in almost 12 years after official figures showed that the economy stagnated in the second quarter of the year.
Source: Telegraph Business | 23 Aug 2008 | 12:05 am

Rentokil profits drop by 72pc

Rats and bugs appear to be enjoying the economic downturn as UK households cut down on pest control.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

Fannie Mae and Freddie Mac game over

Billionaire investor Warren Buffett declared that the "game is over" for Fannie Mae and Freddie Mac.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

ITV's director of television dismisses in-house production quota

Michael Grade's controversial target of commissioning three-quarters of ITV1's shows from its in-house production teams has been cast aside.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

Lending to the poor has rich rewards

Western banks are following the father of micro-finance into sub-sub-sub-sub-prime.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

John Lewis clatters into Beijing hurdle

Sales at John Lewis fell by 4.2pc over the week to August 16 as Britain's Olympic success and school exam results kept shoppers away from the high street.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

At home with new India's growing middle class

British companies are eagerly moving into the market but will need to work harder on brand recognition, writes Peter Hutchinson in Mumbai.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

Britain's economic growth shudders to a halt

The longest period of economic growth since the industrial revolution is over, official figures disclosed on Friday
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

Aon widens global presence with Benfield deal

US insurance broker Aon has agreed a £935m deal to buy London-based reinsurance intermediary Benfield.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

Boeing may quit US Air Force bid

American aviation giant Boeing is considering not rebidding for the US Air Force's $35bn (£18.8bn) air-refuelling tanker contract unless it is given more time.
Source: Telegraph Business | 23 Aug 2008 | 12:01 am

Oil prices in biggest dive since 2004

Oil prices tumbled more than $6 a barrel Friday - the biggest one-day percentage plunge in nearly four years - after a rebounding dollar and a Russian troop pullback in Georgia sparked another frenzied sell-off. Crude's nosedive...
Source: New Zealand Herald - Business | 23 Aug 2008 | 12:00 am

Regulators close ninth bank this year

WASHINGTON (Reuters) - Bank regulators closed Columbian Bank and Trust Company on Friday, the ninth U.S. bank to fail this year as the struggling economy and falling home prices take their...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:50 pm

Recalls: Pizza sandwiches, power light modules

_Nestle Prepared Foods Company is recalling about 215,660 pounds of frozen stuffed pepperoni pizza sandwich products, known as Hot Pockets Pepperoni Pizza, because the product might contain
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:42 pm

BP Texas City cases now down to one: court

HOUSTON (Reuters) - BP Plc on Friday announced settlements with four more victims of a deadly 2005 blast at a Texas refinery, leaving only one of more than 4,000 lawsuits still...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:07 pm

BP Texas City cases now down to one: court

HOUSTON (Reuters) - BP Plc on Friday announced settlements with four more victims of a deadly 2005 blast at a Texas refinery, leaving only one of more than 4,000 lawsuits still pending, a Texas state court said.

Source: Reuters: Business News | 22 Aug 2008 | 11:07 pm

VRB Power reports second quarter 2008 financial results

RICHMOND, BC, Aug. 22 /PRNewswire-FirstCall/ - VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the six month period ended June 30, 2008. The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 11:01 pm

GfK silent about backer in Taylor Nelson Sofres bid battle

GfK, the market research group vying with WPP for control of Taylor Nelson Sofres, refused to confirm last night that its original financial backer for a bid was still in place.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Rentokil chief Alan Brown refuses to rule out rights issue

Alan Brown, the chief executive of Rentokil Initial, yesterday refused to rule out the possibility of the troubled company holding a rights issue.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Buffett predicts game over for Fannie and Freddie

For Fannie May and Freddie Mac the game is over. The Sage of Omaha has spoken.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Gordon Brown needs to do a U-turn on Sipps

HBOS’s decision to shut a quarter of its estate agency branches speaks volumes about the housing market. Transactions are rare, lenders are cautious, prices are falling and there’s no sign of respite any time soon. Gordon Brown faces pressure from some quarters to do something about it and his advisers have hinted at a package of measures once he gets back from Beijing.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Halifax to close a quarter of its estate agents

Halifax 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 | 11:00 pm

Channel 4 faces budget cut after advertising downturn

Luke Johnson, the chairman of Channel 4, has given warning that the Big Brother broadcaster will have to cut its £620 million programming budget as it grapples with a severe downturn in advertising.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Ben Bernanke's interest rate promise fires Wall Street

Shares leapt on Wall Street after Ben Bernanke, the Chairman of the US Federal Reserve, boosted market hopes that the central bank will be in little hurry to raise interest rates, despite a recent surge in inflation.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Bradford & Bingley rights issue ignored: banks left with shares

Citigroup, UBS and a handful of investors and high street banks were left holding £288 million of Bradford & Bingley (B&B) stock yesterday after shareholders snubbed the lender's £400 million rights issue.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Asda gets smart with specially timed price cuts

Asda has stepped up its efforts to win cash-conscious customers with a series of substantial price cuts. The supermarket said that the move was a reflection of decreasing spending power. “We are finding that people are buying more of our own-brand value range and this is particularly happening on the third week of the month as salaries run down.”
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

Documentary I.O.U.S.A. tells home truths about US debt mountain

Not since the 1987 release of Wall Street has one small cinema on Manhattan’s Upper East Side seen so many investment bankers queueing to see a film. On Thursday night two film-makers presented a screening of their documentary I.O.U.S.A, born out of the genre that includes Morgan Spurlock’s Super Size Me and Michael Moore’s Sicko.
Source: Latest Business News from Times Online | 22 Aug 2008 | 11:00 pm

NTSB: FAA needs faster progress on runway safety

Officials who made safety recommendations after a plane crash that killed 49 people criticized the Federal Aviation Administration on Friday for not implementing two of them fast enough.
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 10:53 pm

After Hours: Lehman shares give back some regular-session gains

Shares of Lehman Bros. lose ground Friday evening, easing back from a regular-session rally spurred by speculation that the financial-services firm may be the object of a takeover bid.

Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 10:51 pm

Bernanke calmer on inflation threat

The decline in oil prices and the rally in the dollar was "encouraging", Ben Bernanke said, suggesting the Federal Reserve thinks global inflationary pressures could be starting to ease
Source: FT.com - US homepage | 22 Aug 2008 | 10:46 pm

U.S. Supreme Court Strikes Down Handgun Ban

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 10:44 pm

Lehman Brothers, Gap, Alpharma are big movers

Stocks that moved substantially or traded heavily Friday on the New York Stock Exchange and Nasdaq Stock Market: NYSE Lehman Brothers Holdings Inc., up 69 cents at $14.41 The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Aug 2008 | 10:40 pm

Merrill reaches tentative deal with SEC over ARS (Reuters)

Reuters - Merrill Lynch & Co Inc struck a deal with the U.S. Securities and Exchange Commission to buy back billions of dollars of auction-rate securities, in a settlement little different from one the bank reached a day earlier with several states.

Source: Yahoo! News: Business | 22 Aug 2008 | 10:38 pm

Merrill reaches tentative deal with SEC over ARS

WASHINGTON (Reuters) - Merrill Lynch & Co Inc struck a deal with the U.S. Securities and Exchange Commission to buy back billions of dollars of auction-rate securities, in a settlement little different from one the bank reached a day earlier with several states.

Source: Reuters: Business News | 22 Aug 2008 | 10:38 pm

Bernanke says inflation outlook "uncertain"

JACKSON HOLE, Wyoming (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday said the stronger dollar and lower oil prices, along with the weak economy, should curb inflation, in a hint that interest rates would stay on hold, though he warned the inflation outlook is "highly uncertain."

Source: Reuters: Business News | 22 Aug 2008 | 10:37 pm

Lehman's clock is ticking

Lehman Brothers' latest march toward the once-unthinkable price of $10 a share was interrupted when a Korean bank expressed interest Friday in the struggling brokerage firm. The question now is whether CEO Dick Fuld is willing to reciprocate.

Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 10:33 pm

Investor doubt over Lehman fund assets

Private equity firms looking at buying Lehman Brothers' asset management business are expressing doubts about the unit's minority stakes in several hedge fund
Source: FT.com - US homepage | 22 Aug 2008 | 10:30 pm

Latin American Markets: Brazilian stocks turn lower; Mexican shares up

Major Latin American markets end mixed, with Brazilian stocks losing their grip on earlier gains as shares of resource heavyweights came under pressure.

Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 10:27 pm

Canadian Markets: Energy, resources push benchmark into red

Canadian stocks end in negative territory, as energy and resource shares tumble.

Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 10:25 pm

Greek Wines Reputation Improved by Domaine Helios Grande

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 10:16 pm

Market Snapshot: U.S. stocks rally on oil, Fed and prospect of Lehman takeover

U.S. stocks rally, with sentiment boosted by a drop in oil prices and talk that Lehman Brothers may be acquired, while a speech by Federal Reserve Chairman Ben Bernanke confirms the Fed sees inflation moderating this year.

Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 9:58 pm

Levy, McCulley, Lipsky, Lanman Discuss Economy, Fed

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 9:57 pm

Washington Calendar: Washington events for Aug. 25 - 29

10 a.m.: Existing-home sales for July, at the National Association of Realtors.

Source: MarketWatch.com - Top Stories | 22 Aug 2008 | 9:51 pm

Bernanke says inflation outlook "uncertain" (Reuters)

Reuters - Federal Reserve Chairman Ben Bernanke on Friday said the stronger dollar and lower oil prices, along with the weak economy, should curb inflation, in a hint that interest rates would stay on hold, though he warned the inflation outlook is "highly uncertain."

Source: Yahoo! News: Business | 22 Aug 2008 | 9:40 pm

Economic Diary on U.S. Home Sales, Confidence, GDP Data

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 9:35 pm

Stocks jump as oil slumps

Stocks surged Friday, at the end of a tough week, as investors welcomed lower oil prices, a stronger dollar, a rebound in bank shares and comments from Fed Chairman Ben Bernanke that cooled some inflationary worries.

Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 9:31 pm

Boeing, union talks slow as strike looms

NEW YORK (Reuters) - Boeing Co and its largest workers' union are making slow progress in the last leg of key contract negotiations, with no sign of a breakthrough as the end of the current contract draws near.

Source: Reuters: Business News | 22 Aug 2008 | 9:19 pm

S. Korea's KDB says buying Lehman a possibility

SEOUL (Reuters) - State-run Korea Development Bank said on Friday that Lehman Brothers Holdings Inc is one of its options for acquisitions, as the struggling U.S. investment bank considers securing much-needed capital from investors.

Source: Reuters: Business News | 22 Aug 2008 | 9:16 pm

Why have we abandoned New Orleans?

Tess Vigeland reflects on her time in the Big Easy, her emotional connection to the people whose stories she heard, and her sadness over the devastation that still haunts the city.
Source: Marketplace Money | 22 Aug 2008 | 9:15 pm

Stocks brace for another whipsaw week

NEW YORK (Reuters) - What should be a holiday lull of a week looks set to be anything but, with Wall Street on high alert for the latest twists and turns in the credit crisis, more volatility in commodity prices and key developments in the race for the White House.

Source: Reuters: Business News | 22 Aug 2008 | 9:12 pm

Matlock of Huntington Int. Equity Is Selective When Buying ETFs

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 9:03 pm

Fed Symposium, Schaeffler Buys Continental, NBC's Gold

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 8:57 pm

VIX Index of U.S. Stock Option Prices Retreats 5.1 % to 18.81

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 8:52 pm

Oil ETFs End Week on Down Note (Daily ETF Wrap-Up)

Crude ends week with big sell-off as U.S. dollar gains strength.

Source: SmartMoney.com | 22 Aug 2008 | 8:51 pm

Russia claims it has met pull-out terms

Russia said on Friday it had fulfilled its ceasefire obligations to withdraw its forces from Georgia, although Moscow still appeared to control large swathes of the centre and west of the country
Source: FT.com - US homepage | 22 Aug 2008 | 8:51 pm

Stocks Up on Fed, Lehman

Equities rose on hopes of a cash infusion at Lehman and a prediction that inflation would moderate.

Source: SmartMoney.com | 22 Aug 2008 | 8:45 pm

Oil falls 5.4 percent in biggest drop since 2004

NEW YORK (Reuters) - Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.

Source: Reuters: Business News | 22 Aug 2008 | 8:39 pm

On The Ball: Spitz on Phelps, Billy Jean King's New Book

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 8:34 pm

Lehman's jump, oil's plunge drives Wall St rally (Reuters)

Reuters - U.S. stocks rallied on Friday to score their best daily gain in two weeks as hopes that Lehman Brothers may attract a major investor lifted financial stocks while a plunge in oil prices soothed worries about inflation and consumer spending.

Source: Yahoo! News: Business | 22 Aug 2008 | 8:33 pm

Lehman's jump, oil's plunge drives Wall St rally

NEW YORK (Reuters) - U.S. stocks rallied on Friday to score their best daily gain in two weeks as hopes that Lehman Brothers may attract a major investor lifted financial stocks while a plunge in oil prices soothed worries about inflation and consumer spending.

Source: Reuters: Business News | 22 Aug 2008 | 8:33 pm

Wall St takes heart from Bernanke speech

US stocks staged a rally after a speech by Federal Reserve chairman Ben Bernanke and a fall in oil prices, but remained in negative territory for the week
Source: FT.com - US homepage | 22 Aug 2008 | 8:30 pm

Correction: Aeropostale earnings story (AP)

AP - In extended headlines of Aug. 21 stories about clothing retailer Aeropostale Inc.'s second-quarter earnings report and the company's outlook, The Associated Press erroneously spelled the name. It is Aeropostale, not Aerpostale or Aeropostal.
Source: Yahoo! News: Business | 22 Aug 2008 | 8:28 pm

Moody's ratings cut latest blow to Fannie, Freddie

NEW YORK (Reuters) - A major credit rating agency cut the preferred share rating on Fannie Mae and Freddie Mac amid mounting concern about the ability of the two largest U.S. home funding providers to access capital, in the latest blow before a widely expected government bailout.

Source: Reuters: Business News | 22 Aug 2008 | 8:17 pm

Moody's ratings cut latest blow to Fannie, Freddie (Reuters)

Reuters - A major credit rating agency cut the preferred share rating on Fannie Mae and Freddie Mac amid mounting concern about the ability of the two largest U.S. home funding providers to access capital, in the latest blow before a widely expected government bailout.

Source: Yahoo! News: Business | 22 Aug 2008 | 8:12 pm

The 52-Week Low Club 8/22/2008 (EXLS)(CNTF)(CPWM)(PSUN)

Pacific Sunwear (PSUN) Awful forecast. Drops to $5 from 52-week high of $18.44.

Cost Plus (CPWM) Tough results for last quarter. Sells down to $1.50 from 52-week high of $6.22.

China Techfaith (CNTF) Company warns on sales, cut jobs. Plunges to $1.51 from 52-week high of $9.98.

Exlservice Holdings (EXLS) No big news. Slips to $11.07 from 52-week high of $28.96.

Douglas A. McIntyre

Source: 24/7 Wall St. | 22 Aug 2008 | 7:53 pm

Google plans big Obama party

The Democratic National Convention that kicks off Monday in Denver will be a transforming moment in politics. But it could be almost as big an event in the annals of American media, the moment when the new kids on the block eclipse or at least grab equal footing with the establishment.

Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 7:45 pm

Blog: Jerry Brown won't go after Schumer for IndyMac comments

Source: L.A. Times - Business | 22 Aug 2008 | 7:41 pm

Oil falls 5.4 percent in biggest drop since 2004 (Reuters)

Reuters - Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.

Source: Yahoo! News: Business | 22 Aug 2008 | 7:35 pm

Windfall for Palmerston North windfarm

A delay in commissioning of the second stage of turbines at the Te Rere Hau windfarm near Palmerston North caused NZ Windfarms to miss its prospectus revenue forecast. But the money earned interest, helping the company meet its...
Source: New Zealand Herald - Business | 22 Aug 2008 | 7:30 pm

Oil: Biggest drop in 17 years

Oil prices plummeted Friday, erasing the previous session's spike, as the dollar strengthened and investors worried that a decline in demand will spread outside the United States.

Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 7:18 pm

Slideshow: SmartMoney Magazine's Luxury Car Picks (SmartMoney Magazine)

What happens to fancy car prices in a down market? We test drive the cars and the deals.

Source: SmartMoney.com | 22 Aug 2008 | 7:11 pm

SmartMoney Magazine's Luxury Car Picks (SmartMoney Magazine)

SmartMoney Magazine picks the best high-end models.

Source: SmartMoney.com | 22 Aug 2008 | 7:03 pm

Labor Day travelers opt for trains, buses

Travelers will be crowding onto buses and trains for this Labor Day weekend, the motorist group AAA said on Friday, while car and airplane travel is expected to decline.

Source: Business and financial news - CNNMoney.com | 22 Aug 2008 | 7:00 pm

Bernanke: Storm not over

Federal 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 | 6:59 pm

3 Funds for Tech-Minded Investors (Fund Screen)

Three technology funds made our cut, but think hard before investing in them now.

Source: SmartMoney.com | 22 Aug 2008 | 6:53 pm

French champagne lightens its load

Faced with dizzying increases in production and transportation costs, champagne houses are starting to make their traditionally thick, sturdy bottles thinner
Source: FT.com - US homepage | 22 Aug 2008 | 6:41 pm

Alpharma Already Wants More From King (ALO, KG)

Source: 24/7 Wall St. | 22 Aug 2008 | 6:31 pm

Diller to focus on the 'new IAC'

More than a decade after the founder of the Fox broadcast network began investing in the e-commerce and online media companies that became IAC, this week he split his sprawling empire to start again
Source: FT.com - US homepage | 22 Aug 2008 | 6:31 pm

Acquisitions lift Ebos

Medical supplies company Ebos reported a 61 per cent increase in annual net profit to $16.7 million with the help of trading from four acquisitions. Earnings before interest, tax, amortisation and depreciation rose 78 per cent...
Source: New Zealand Herald - Business | 22 Aug 2008 | 6:30 pm

4 Ways to Reduce a Gadget's Power Drain (Deal of the Day)

Gadgets account for a big chunk of our electric bills. Here's how to contain the drain.

Source: SmartMoney.com | 22 Aug 2008 | 6:27 pm

The Worst Recession Since the Depression? No Way. (Ahead of the Curve)

Nouriel Roubini predicts the worst recession since the Depression. How wrong he is.

Source: SmartMoney.com | 22 Aug 2008 | 5:55 pm

Politicians, Bureaucrats Threaten Free Markets (Tradecraft)

Meddlesome politicians and bureaucrats are jeopardizing free markets.

Source: SmartMoney.com | 22 Aug 2008 | 5:49 pm

Getting Personal

Chris Farrell and Tess Vigeland give advice to someone dealing with a fiery homeowners association, and a couple investing in renewable energy.
Source: Marketplace Money | 22 Aug 2008 | 5:49 pm

His first job had him in the dumps

Commentator Robert Reich proves that a first job isn't always a step in the right direction. His gig at an ad agency in New York went to the dogs.
Source: Marketplace Money | 22 Aug 2008 | 5:49 pm

Investing summertime in their future

Kids at Camp Millionaire learn how to save, how to cut back on expenses, and how investing can lead to financial freedom as adults. Caitlin Carroll reports.
Source: Marketplace Money | 22 Aug 2008 | 5:49 pm

Emergency plans born from disaster

So how do prepare your finances for an emergency? Tess Vigeland asked some of the folks she talked to in New Orleans what they learned and what advice they have for you.
Source: Marketplace Money | 22 Aug 2008 | 5:48 pm

Day in the Work Life: Katrina writer

Meet Ian McNulty, one of the latest entrants in Hurricane Katrina storytelling. We found him hunched over a beer at a neighborhood bar in New Orleans' Mid-City.
Source: Marketplace Money | 22 Aug 2008 | 5:48 pm

NOLA homeowners still wait to elevate

Host Tess Vigeland explores the bureaucracy, decision-making, and financial hardships of homeowners rebuilding in the Crescent City. While some are determined to build at higher elevations, others are taking their chances at ground level.
Source: Marketplace Money | 22 Aug 2008 | 5:48 pm

Straight Story: What about poverty?

Chris Farrell looks at the opportunity to improve the lives of poor people in New Orleans that appears to have been lost. He says the mortgage crisis might have a silver lining for some: affordable housing.
Source: Marketplace Money | 22 Aug 2008 | 5:48 pm

Investors holding on to Fannie, Freddie

Shares in Fannie Mae and Freddie Mac suffered yet another meltdown this week, and the government might step in to bail them out. If that happens, shareholders risk losing all their money. Even so, some of them are staying put. Rico Gagliano reports.
Source: Marketplace Money | 22 Aug 2008 | 5:48 pm

Many NOLA neighborhoods still empty

About 70% of New Orleans' pre-Hurricane Katrina population is back. Many have moved to higher ground, leaving one-third of residential addresses empty. Tess Vigeland talks with Tina Marquardt of the nonprofit Beacon of Hope about what's keeping people away.
Source: Marketplace Money | 22 Aug 2008 | 5:48 pm

Hot Jobs: Canoe renter

Ruth Bender remembers how her family was always lending their boat to neighbors when she was growing up in Wisconsin. She turned that memory into a business, renting canoes on the Wisconsin River.
Source: Marketplace | 22 Aug 2008 | 5:35 pm

New Orleans 3 years after Katrina

Marketplace Money host Tess Vigeland took a trip to New Orleans recently to see how it's recovering from the devastation of Hurricane Katrina three years ago. She tells Kai Ryssdal about how much reconstruction is yet to be done.
Source: Marketplace | 22 Aug 2008 | 5:34 pm

Week on Wall Street

Host Kai Ryssdal goes over the week's big financial stories with stockbroker and business analyst David Johnson in Dallas, Texas. Fannie and Freddie, the Russians and gyrations on the stock market come up.
Source: Marketplace | 22 Aug 2008 | 5:32 pm

Reshuffle at SmartPay

SmartPay has appointed Ian Bailey as its managing director and John Seton as acting chairman. Smartpay is reviewing all aspects of its business in light of the economic environment. As part of the restructure chief executive Linc...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:30 pm

Big Ben's ticking on 2012 Games

With the 2008 Summer Olympics ending Sunday in Beijing, Steven Beard checks on preparations for the Summer Games set for London in 2012. He gets an earful from Brits who aren't confident their country has the necessary organizational skills.
Source: Marketplace | 22 Aug 2008 | 5:29 pm

Teen finds sushi fraud using DNA tests

Recent high school grad Kate Stoeckle and her friend Louisa Strauss made headlines by finding something fishy on their sushi plates. Kai Ryssdal talks to the Manhattan teen.
Source: Marketplace | 22 Aug 2008 | 5:23 pm

Just how rich are these candidates?

McCain has seven homes. Obama has one, but it's worth more than a million. Does that mean they're rich? Steve Henn reports on where the presidential candidates fall on a scale of American wealth.
Source: Marketplace | 22 Aug 2008 | 5:21 pm

Bernanke: Broaden financial oversight

The Federal Reserve chairman says the financial storm isn't over, but inflation should ease. He also speaks of ways to discourage the risk-taking that started the credit crunch. Amy Scott reports.
Source: Marketplace | 22 Aug 2008 | 5:11 pm

Investors need full story on bottom line

When is a profit not a profit? The answer would seem simple - when it's a loss. But figures emerging from this year's result's season show that determining whether a company has made a profit, how much of a profit or even whether...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:00 pm

Liam Dann : Beware expanding acronym

Nothing scares off non-business readers like EBITDA. The ugly acronym is normally banned from the first paragraph of Business Herald stories. Those of you still reading may already know that EBITDA is a good way of indicating how...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:00 pm

US stocks: Fallout continues to plague markets

Wall Street capped a volatile week with sharp gains today as oil prices tumbled and after Federal Reserve Chairman Ben Bernanke said inflation pressures are likely to moderate. The Dow Jones industrial average rose nearly 200...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:00 pm

Sealegs - out of choppy seas into calmer waters

David McKee Wright is understandably chipper. Four years after announcing plans to create a world-leading company that essentially builds boats with wheels - to general derision - Sealegs is on the verge of turning a profit. It...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:00 pm

Brian Gaynor : You can bank on safety of local lenders

In this uncertain environment it is important to emphasise the huge difference between finance companies and banks, particularly in New Zealand. The failure of more than 20 finance companies, which is a dreadful reflection on the...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:00 pm

Failed and bankrupt - but comfortably broke

Rod Petricevic's latest evasive tactic to avoid parting with his cherished vehicle, despite massive creditor issues, is not his first. It mirrors 1989 when Petricevic's lawyer claimed the failed merchant banker was not trying...
Source: New Zealand Herald - Business | 22 Aug 2008 | 5:00 pm

Profit-takers tug at dollar's tail

The dollar's sharp rally ran out of steam this week as traders booked profits after a strong run that had seen it rise more than 4 per cent since the start of the month
Source: FT.com - US homepage | 22 Aug 2008 | 4:41 pm

GM (GM) Wants A Loan From Uncle Sam

Several reports indicate that GM (GM, Ford (F), and Chrysler are approaching the government for a total of $25 billion in loans at interest rates as low as 4.5%. The money could come in the form of loan guarantees.

Perhaps Toyota (TM) could borrow some cash as well.

The move to get fresh capital at a low rate is being championed by powerful and aged US Congressman John Dingell, a man who never saw a piece of pork he did not like.

The possibility of the loans raises several questions, the most important of which is what will happen to the holders of common stock in the two public car companies. If the plan allows them to hold their shares without penalty, holders of Fannie Mae (FNM) and Freddie Mac (FRE) shares might be a bit put off.

As the government bail-out option spreads from industry to industry as the economy worsens, the debate about whose oxen will get gored is going to become violent.

Douglas A. McIntyre

Source: 24/7 Wall St. | 22 Aug 2008 | 4:26 pm

Have Commodities Run Out of Gas? (Ahead of the Curve)

Searching for reasons behind the tumble in oil and other commodity prices? Don't.

Source: SmartMoney.com | 22 Aug 2008 | 4:17 pm

Keep an Open Mind About Closed-End Funds (Tradecraft)

Though eclipsed in popularity by ETFs, closed-end funds offer unique opportunities.

Source: SmartMoney.com | 22 Aug 2008 | 4:17 pm

Olympics boost for ad giant WPP

Global 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 | 4:04 pm

Rentokil Initial's profits halve

Rentokil 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 | 4:01 pm

Ben Sees the Light

It's about time that financial authorities took off their regulatory blinders.

In laying out a wish list for changes to financial regulation in the United States, Ben Bernanke, the chairman of the Federal Reserve, said today that officials should be given explicit authority to oversee systemic risk.

"Under our current system of safety-and-soundness regulation, supervisors often focus on the financial conditions of individual institutions in isolation," Bernanke said at an annual conference on monetary policy in Jackson Hole, Wyoming. "An alternative approach...would broaden the mandate of regulators and supervisors to encompass consideration of potential systemic risks and weaknesses as well."

After the onset of the credit crunch last August, it became clear that the risks associated with subprime mortgages had not been dispersed through the entire financial system but were instead concentrated in large commercial and investment banks. When confidence dried up, these banks felt the brunt of the pain, eventually leading to the Fed-led sale of Bear Stearns to J.P. Morgan.

In preventing a similar debacle from popping again, it would be helpful for Federal authorities to run stress tests on an entire sector to identify potential problem spots as opposed to examining just one bank as they do now. Providing guidance and reviews on practices like the underwriting of interest-only mortgages should also be a more explicit part of what Federal regulators do.

"These reviews help increase the safety and soundness of individual institutions, but they may also identify common weaknesses and risks that may have implications for broader systemic stability," Bernanke said.

More ambitiously, regulators could potentially try to monitor systemic risk in real time, but the scope and costs of such an endeavor could be overwhelming, Bernanke cautioned.

Still, the Fed chairman said that a broadening of the scope of financial regulation is "inevitable and desirable."

Of more immediate interest to investors, Bernanke also said that the recent fall in energy prices should help reduce price pressures, but called the inflation outlook "highly uncertain." Still, he gave no indication that the Fed was ready to increase rates.

Also on his wish list, Bernanke repeated calls for an improved system for settlement of credit-default swaps, saying that setting up a central counterparty might be necessary.


Related Links
Rate Hikes May Be Around the Corner
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Source: Portfolio.com: Top 5 | 22 Aug 2008 | 4:00 pm

Investors pulling out of Russia

Russia sees foreign investment fall as investors become more nervous following the recent conflict with Georgia.
Source: BBC News | Business | World Edition | 22 Aug 2008 | 3:44 pm

Bernanke warning on US inflation

US Federal Reserve chairman Ben Bernanke says the inflation outlook for the nation is "highly uncertain".
Source: BBC News | Business | World Edition | 22 Aug 2008 | 3:29 pm

Koch Says Ratchet Hostile Rhetoric Down `Immediately'

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 3:28 pm

UK economy comes to a standstill

UK 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 | 3:23 pm

Actors Farr, Gillette Back On Stage In `Flamingo Court'

Source: Bloomberg - All Podcasts | 22 Aug 2008 | 3:15 pm

Moody's Cutting GSE's, The Ride Continues (FNM, FRE)

Source: 24/7 Wall St. | 22 Aug 2008 | 3:12 pm

Tata's concern over Nano factory

Tata Motors threatens to pull out of West Bengal state where it is building a factory to roll out the world's cheapest car, Nano.
Source: BBC News | Business | World Edition | 22 Aug 2008 | 3:01 pm

Oil price down as dollar rebounds

Oil prices shed more than a dollar a barrel, reversing earlier gains, as the greenback strengthened
Source: BBC News | Business | World Edition | 22 Aug 2008 | 2:52 pm

Bernanke Talks Down Economic Expectations & Inflation

Source: 24/7 Wall St. | 22 Aug 2008 | 2:19 pm

24/7 Wall St. Most Overpaid CEO Of The Day: Pacific Sunwear (PSUN) CEO Sally Frame Kasaks

According to the Pacific Sunwear proxy, CEO Sally Frame Kasaks makes a base salary of $1,250,000. Last year, her total compensation was $3.2 million.

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

The Corporate Convention

Corporations 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
Update: Murdoch Not Behind 'WSJ' Veep Mix-Up
Don't Count Out Republican Donors
G.O.P. Donors Watch and Wait


Source: Portfolio.com: Top 5 | 22 Aug 2008 | 2:00 pm

Lehman Gets a Second Look

A sale of Lehman Brothers has for months been considered by many as the cleanest solution to the woes of the embattled Wall Street firm. Yet, as its reported difficulties in selling a major stake of its assets have shown, there is a dire shortage of would-be suitors

But the Korea Development Bank may be one. A spokesman for the state-run bank told Reuters today, that "We are studying a number of options and are open to all possibilities, which could include Lehman."

The chief executive of the bank is Min Euoo-sung, who led Lehman's operations in South Korean until earlier this year.

Korea Development had been close to taking a 50 percent stake in Lehman, but the talks broke down over price, the Financial Times reported on Thursday.

The idea that there is still interest in doing a deal is driving shares of Lehman up more than 11 percent in early trading.

Today's report that a deal just might be back on comes on the heels of a note by banking analyst Richard Bove that Lehman is ripe for a takeover.

"Investors are unwilling to accept any positive view of the company; management is unwilling to sell out at a deeply distressed value," Bove wrote on Thursday. "The stage is set for a hostile bid to take over the whole company."

If its asset management unit Neuberger Berman is worth $8 billion to $13 billion as many have suggested, then investors are valuing Lehman, with a market value of $10 billion, at nearly zero, indicating that Lehman is a great buying opportunity, Bove noted.

Heidi Moore on the Wall Street Journal's Deal Journal blog points out that there are number of reasons why a hostile takeover does not make sense. They rarely work in investment banking, and are unlikely when employees own more than 30 percent of the firm's stock, as is the case at Lehman.

So who might buy Lehman? Let's trot out the usual suspects:

Overseas banks: At any other time, the market plight of Lehman would be a great opportunity for a foreign bank looking to become a major player in U.S. investment banking. In this time of uncertainty, no one seems likely to take the risk. For Barclays of Britain, Lehman would be a great fit, but Bob Diamond, the president of the Barclays investment-banking unit, has recently sought to throw cold water on such speculation, saying that the bank may be interested in acquiring a wealth manager, but not an investment bank. Other big European banks, like UBS, are mired in their own problems, while banks like HSBC and Deutsche Bank have no need for a Wall Street acquisition. The big Japanese banks have huge cash war chests, but having been burned before on Wall Street, are more likely to use that for overseas acquisitions of commercial and regional banks.

Blackstone Group: One of the leading linkups that have been talked about, in large part because Steve Schwarzman is a Lehman alum. A deal makes sense in many ways: Lehman's investment-management business would greatly bolster Blackstone's asset-management business and would accelerate its push to diversify beyond buyout funds. Blackstone would become in one stroke a full-fledged major Wall Street firm. But by going public and launching a push into philanthropy, Schwarzman has signaled that he is entering the next stage of his career and probably has no desire to take on the challenge of Lehman and the volatility and risks that come with a huge trading operation. And Blackstone shareholders, already an unhappy lot, would scream.

Going private: Taking the firm private makes the most sense in strictly dealmaking terms: The stock is arguably cheap, and with a sharply reduced market value and the possibility of persuading stock-owning employees to convert their shares into equity in a private firm, it is very doable. In July, an analyst with Fox-Pitt suggested as much in a report, saying that Lehman could go private at a 25 percent premium to its stock price.

As a way to rescue the firm, however, it is a nonstarter.

The only overt sign of the market's confidence in an investment firm is its stock price. Going private, and the limited disclosure that comes with it, would only generate more doubts among counterparties and partners. That would be true as well if Lehman were acquired by a private equity firm like Citadel Investment Group or J.C. Flowers, which had been interested in Bear Stearns during that manic week in March.

As Felix Salmon wrote in June:

"The problem with any private equity acquisition is that once an investment bank disappears into private equity's black box, no one really knows for sure how strong or weak it is. Sure, the S.E.C. will continue to regulate it, but the S.E.C. is an ineffective bank regulator at the best of times. And one might hope that the Fed would continue to keep an eye on things, but they're not going to be communicating what they know to the market. Which leaves basically the ratings agencies and whatever disclosures the bank still has to make as an issuer of publicly traded bonds. Neither provide anything like the level of granularity and detail that one gets from a NYSE-listed company."

So is there anyone left?

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Source: Portfolio.com: Top 5 | 22 Aug 2008 | 2:00 pm

Party Lines

When 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.
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Source: Portfolio.com: Top 5 | 22 Aug 2008 | 2:00 pm

Rising costs biting for chocolate firms

More 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

Warren Buffett Talks Financials, Markets, Economy & Politics (BRK-A, WFC, AXP, JPM, FNM, FRE, BUD, CNQ, BNI, BRK-B)

Source: 24/7 Wall St. | 22 Aug 2008 | 1:16 pm

New route boosts Arriva's profits

Arriva says the addition of Cross Country rail services has helped its UK trains division boost half-year profits.
Source: BBC News | Business | World Edition | 22 Aug 2008 | 12:11 pm

ISE takes stake in Direct Edge

The International Securities Exchange, one of the largest US options markets, took an almost 32 per cent stake in Direct Edge, an alternative equities trading platform
Source: FT.com - US homepage | 22 Aug 2008 | 12:09 pm

Google Holds Up "V" Sign

Have 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 Wins Verizon Wireless Sweepstakes
Google Extends Web Search Lead
Big V Gets Bigger - Watch Out, Google


Source: Portfolio.com: Top 5 | 22 Aug 2008 | 12:00 pm

Aon agrees £844m offer for Benfield

Shares in Benfield jumped sharply after the reinsurance broker announced an agreed £844m offer from Aon, the US insurance group
Source: FT.com - US homepage | 22 Aug 2008 | 11:40 am

Feeling flat

The symbolism of the UK economy stagnating
Source: 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:

• Avanex (AVNXD) Cut to Neutral at Merriman Curhan Ford.
• Burger King (BKC) Cut to Neutral at UBS.
• Las Vegas Sands (LVS) Cut to Sell at B of A.
• Logitech (LOGI) Cut to Hold at Deutsche Bank.
• Pacific Sunwear (PSUN) Cut to Neutral at Baird; Cut to Market Perform at FBR.
• Physicians Formula (FACE) Cut to Neutral at Piper Jaffray.
• ShorTel (SHOR) Cut to Equal Weight at Lehman.
• Symmetry Medical, Inc. (SMA) Cut to Underperform at Wachovia.
• Talbots (TLB) Cut to Market Perform at FBR.

Jon C. Ogg
August 22, 2008

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:

• Amedisys (AMED) Started as Outperform at Baird.
• Concur Tech (CNQR) Raised to Outperform at Oppenheimer.
• Gentiva Health Services Inc. (GTIV) Started as Outperform at Baird.
• O'Reilly Auto (ORLY) Started as Buy at UBS.
• Telus (TU) Raised to Buy at UBS.

Jon C. Ogg
August 22, 2008

Source: 24/7 Wall St. | 22 Aug 2008 | 11:33 am

America's Most Overpaid CEOs (MER)(CBS)(AXP)(MS)(NBR)

The AP announced its list of the top 10 paid CEOs for 2007. The figures were based on "AP's compensation formula, which adds up salary, perks, bonuses, above-market interest on pay set aside for later, and company estimates for the value of stock options and stock awards on the day they were granted last year."

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