World Business News Headlines for August 25, 2008

Early-Bird Analyst Upgrades & Downgrades (ANN, CSUN, VRGY, CVC, KNX, OSK, WERN)

As this is last week of August, the daily upgrades and downgrades are rather thin as firms are starting to run on skeleton crews for one of the lightest news weeks of the year. Here are today's early-bird analyst upgrades and downgrades:

Ann Taylor (ANN) Raised to Hold from Sell at Citigroup.
China Sunergy (CSUN) Raised to Buy at Jefferies.
Verigy (VRGY) Raised to Hold at S&P.
Cablevision (CVC) Cut to Sell at Citigroup.
Knight Transportation (KNX) Cut to Market Perform at Wachovia.
Oshkosh (OSK) Cut to Sell at S&P.
Werner Enterprises (WERN) Cut to Market Perform at Wachovia.

Jon C. Ogg
August 25, 2008

Source: 24/7 Wall St. | 25 Aug 2008 | 11:25 am

SocGen lowers oil price forecasts

LONDON (Reuters) - Societe Generale has cut its 2008 and 2009 crude oil price forecasts, joining other banks in trimming estimates following a drop in prices from a record high hit last month.

Source: Reuters: Business News | 25 Aug 2008 | 11:13 am

Recession fears weaken sterling

The pound slides to its weakest levels against the dollar in more than two years, on fears about the health of the UK economy.
Source: BBC News | Business | World Edition | 25 Aug 2008 | 11:05 am

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 11:01 am

Broadcom to buy AMD's Digital TV business

NEW YORK (Reuters) - Broadcom Corp plans to buy Advanced Micro Devices' digital television business for $192.8 million in cash in a move to broaden its own product portfolio, the mobile phone chipmaker said on Monday.

Source: Reuters: Business News | 25 Aug 2008 | 10:54 am

Toyota raising hybrid prices in Japan

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 10:48 am

Gilat purchasers balk at closing deal at $11.40-a-share price

A buyout group won't proceed with the purchase Gilat Satellite Networks Ltd. at the parties' previously negotiated $475 million price, Israel-based Gilat says.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 10:47 am

Oil rallies after sharp sell-off

Oil prices rallied modestly on Monday, in what traders called a technical rebound after the sharp sell-off at the close of last week.Bucking the stronger trend in the dollar, oil prices rose after the...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 10:41 am

Oracle's CEO earns $84.6M

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 10:33 am

Gloom hangs over Wall Street

Worries about the deepening credit crisis and higher oil prices weighed on U.S. stock futures early Monday.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 10:28 am

Daimler denies planning second Smart car plant

STUTTGART, Germany (Reuters) - German car maker Daimler AG does not intend to build another factory for its Smart brand minicars, the company said on Monday, denying a German magazine report.

Source: Reuters: Business News | 25 Aug 2008 | 10:20 am

The Economy's Sucker Punch: Falling Gas Prices

Tx00338coilwellgusherodessatexaspos "Never wise up a chump:--W.C. Fields

Today almost every paper carries a headline about gas prices falling $.15 in the last two weeks. Regular petrol is down to $3.75. Americans can take to the road in hordes.

The trouble is that $3.75 gas will still swamp most drivers and oil does not seem to want to drop much below $120. That means that fuel prices are not likely to keep falling.

On a scale of 1 to 10, a $4 gallon of gas was as close to a 10 as prices have been in decades. At $3.75 it is still an 8 or 9.

It may be hard to remember, but gas was under $2 in several parts of the country as recently as early 2007. Driving, running an airline, or transporting goods was affordable then and the economy was not under pressure from fuel prices.

Gas at $3.75 is about to be married with extremely high home heating oil prices, which, by the estimate of the federal government will be up 31% this winter compared to last.

Paired together, gas and heating oil prices will mean the consumer will pay more for energy later this year than he has at any time in recent history. The modest drop in gas prices means very little.

This will be a cruel winter. Mortgage and credit cards rates are still high. Wages are barely rising. Home prices are still moving down rapidly.

The lower price of gas is simply a mirage in a desert that is getting more dry by the month.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Aug 2008 | 10:19 am

Issue #1: Are you better off?

The statistics are grim: Inflation is at a 17-year high. Unemployment is rising. Foreclosures are spreading.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 10:11 am

Daimler denies planning second Smart car plant (Reuters)

Reuters - German car maker Daimler AG (DAIGn.DE) does not intend to build another factory for its Smart brand minicars, the company said on Monday, denying a German magazine report.

Source: Yahoo! News: Business | 25 Aug 2008 | 10:08 am

European shares slide despite bid chatter

Merger and acquisition talk in Germany failed to push European shares into positive territory on Monday with volumes dampened by a public holiday in the UKIn late morning trade, the benchmark FTSE Eurofirst...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 10:06 am

Online bank touts 3.75% savings rate

New York Private Bank & Trust, the holding company of Emigrant Bancorp, Inc., unveiled a new online savings account Monday that the company claims will provide the highest interest rate in the country.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 10:04 am

Merrill Lynch looking to revise MGM deal terms: paper

(Reuters) - Merrill Lynch is examining its contract with Metro-Goldwyn-Mayer's United Artists as the bank looks to revise the deal on more favorable terms, the New York Post reported, citing sources close to the situation.

Source: Reuters: Business News | 25 Aug 2008 | 10:01 am

Housing: Frank talk from Barney Frank

Spend 27 years in Congress and you're bound to encounter more than one financial train wreck. But as Rep. Barney Frank, D-Mass., sees it, the meltdown in the U.S. housing market poses as much of a threat to the nation's economic well-being as anything he's encountered during his time on Capitol Hill.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 10:00 am

Financial slowdown 'to drag on'

The global downturn could "drag on for some considerable time", warns the Bank of England's deputy governor.
Source: BBC News | Business | World Edition | 25 Aug 2008 | 10:00 am

Indications: U.S. stock futures drift lower as data wave begins

U.S. stock futures drifted lower to open a week full of economic data, including Monday’s release of existing-home sales.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 9:57 am

Fed Policy Alternative: Watch The World Burn (GS)(JPM)(FNM)(FRE)(WB)(WM)(LEH)

In the latest installment of the "Batman" film series, loyal butler Alfred tries to explain the behavior of some of the most depraved criminals. He points out to a befuddled Bruce Wayne that "Some men just want to watch the world burn."

To counter the Bernanke argument that the Fed must step in to save banks and financial institutions which are deemed "too large to fail", Willem Buiter, formerly a Bank of England policy maker, said that a willingness to bail out distressed investors is ``unhealthy and dangerous.

Several proponents of a minority report, including men as august as Warren Buffett, believe that it is irresponsible to do much of anything for troubled banks. The system will get the heroin out of its blood if it has to go cold turkey immediately.

No one can predict the level of disaster that would follow a withdrawal of the Fed as the critical support of the US financial system. Optimists believe that healthy firms like Goldman Sachs (GS) and JP Morgan (JPM) would buy up their failing peers. The bleeding would be limited and a natural consolidation would occur.

The notion that the financial system could "fail" successfully does not make much sense once the analysis steps beyond the best case. Goldman Sachs may not hold relatively as much bad paper as Lehman, but serial failures of Lehman (LEH), Wachovia (WB), and Washington Mutual (WM) may be more than the support beams of the healthy institutions can handle. Coupled with a catastrophe at Fannie Mae (FNM) and Freddie Mac (FRE), it is almost impossible to see how anything other than profound instability would prevail.

The government may have become meddlesome over the last year and it may undermine the strengths of a free market system.

But, chaos has its disadvantages.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Aug 2008 | 9:55 am

Strong start to the week for Asian markets

Asia Pacific shares got off to a strong start on Monday, building on Wall Street's rally last Friday, as oil prices kept close to the lows reached at the end of last week, helping ease concerns over inflation...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 9:54 am

Automakers seek $50B in loans from Congress

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 9:53 am

China considers $54bln stimulus plan: state media

China is considering a 54-billion-dollar stimulus plan involving tax cuts and government spending, state media said Monday, in another sign that boosting the economy is becoming a priority.
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:52 am

KDB warned against buying Lehman

South Korea's top financial regulator on Monday warned that Korea Development Bank should take a "cautious" approach to buying an overseas bank, following the state-run group's expression of interest in...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 9:48 am

KDB warned against buying Lehman

South Korea's top financial regulator warned that Korea Development Bank should take a 'cautious' approach to buying an overseas bank, following the state-run group's expression of interest in Lehman Brothers
Source: FT.com - US homepage | 25 Aug 2008 | 9:48 am

Oil advances amid supply jitters

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 9:45 am

Luxury Values Remain Stable in San Francisco; Los Angeles and San Diego Values Continue to Fall

San Diego Values Down 7.8% Compared To Year Ago SAN FRANCISCO, Aug. 25 /PRNewswire/ -- Luxury home prices remained flat in San Francisco in the second quarter of 2008
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:45 am

Zetabid(TM) Auctions Make It Easy to Buy Bank-Owned and Builder-Owned Homes in the U.S.

Los Angeles Times Media Group, GoIndustry DoveBid and CataList Homes Form National Venture To Expand The Pool of Auction Buyers By Providing Convenience And Transparency; Real Estate...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:45 am

Japan to avoid deep economic slump: BoJ chief

Japan is likely to avoid a deep economic downturn thanks to the robust health of the corporate sector and the country's super-low interest rates, the head of the central bank said Monday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:37 am

New Cannon Beach Marketing Firm Selects Leopold Ketel & Partners for Public Relations

CANNON BEACH, Ore., Aug. 25 /PRNewswire/ -- A newly formed non-profit organization created to promote tourism in the Oregon oceanside community of Cannon Beach, has...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:34 am

Dollar rallies on interest rate outlooks

The dollar resumed its rally on Monday as the absence of trade in London kept volumes sparse and highlighted underlying longer-term trends in the foreign exchange market.The latest sentiment indicators...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 9:33 am

AirBed&Breakfast Selects MSR Communications as PR Agency of Record

San Francisco PR Firm Chosen by Emerging Travel Web Site to Spearhead Consumer Relations SAN FRANCISCO, Aug. 25 /PRNewswire/ -- MSR Communications(R) (MSR), an ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:33 am

ReLogic Picks Metzger Associates for Public Relations

High-tech, high-touch real estate brokerage aims to change the business BOULDER, Colo., Aug. 25 /PRNewswire/ -- ReLogic, the commission-free, full-service real estate
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:32 am

SocGen lowers oil price forecasts

LONDON (Reuters) - Societe Generale has cut its 2008 and 2009 crude oil price forecasts, joining other banks in trimming estimates following a drop in prices from a record high hit last...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:29 am

August Car Sales And Incentives: Baiting The Poor

Hopes are that instead of selling a very few cars in August, auto companies will sell less few than they did in July. These perverse economics have become the way that Detroit tracks it misery.

Because GM (GM) has lowered prices on most of its cars, economists expect that a modest number of consumers will make their way back into dealerships.

J.D. Power told The Wall Street Journal that "industrywide sales are expected to improve slightly from July's moribund rate."

Perhaps that is so, but it is hard to see how GM benefits from selling a slightly larger number of cars while losing more money on each one. The only reasonable answer is that its inventory for many models is over 120 days and that its dealers are drowning in a sea of unsold units. At least those dealers make money though charging for service after the sale.

In the current economy, incentives are overrated as a way to prime the pump. Selling a $25 steak for $20 does not help a consumer who has to pay $10 for a loaf of bread and $3.75 for a tank of gas.

Everyone wants a shiny new car. That makes the prospects of an incentive depressing to most window shoppers. They are tempted to buy something that appears "cheap" until they realized that they still cannot afford it.

Incentives do have an unintended consequence that could hurt the financial system a couple of quarters out. Those tortured consumers who do risk buying a new vehicle may not be able to maintain their monthly car payments after that $5,000 cash back has run out. Buying gas and paying for a car are simply beyond the means of many citizens.

Car incentives may just turn out to be fool's gold.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Aug 2008 | 9:27 am

Merrill Lynch looking to revise MGM deal terms: paper

Zimbabwe arrests two opposition MPs

Zimbabwean police arrested two opposition MPs as they arrived for the swearing in of the country's new parliament, raising fears that President Robert Mugabe's regime is seeking to restore its majority in the legislature by force.
Source: FT.com - US homepage | 25 Aug 2008 | 9:24 am

Central bank buys Danish lender

Denmark's central bank, the Nationalbanken, is to lead a buyout of the country's struggling lender Roskilde Bank.
Source: BBC News | Business | World Edition | 25 Aug 2008 | 9:17 am

Inflation threat growing, economists say

A survey of top economists shows that many are growing more concerned about inflation and slightly less worried about mortgage and credit market problems.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 9:17 am

Toyota announces price hikes to offset soaring costs

Toyota Motor Corp. said Monday it was raising prices on some passenger cars in Japan for the first time in more than 30 years in an effort to cushion its profits from the impact of soaring...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Aug 2008 | 9:15 am

Tropicana puts casino on the block

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 25 Aug 2008 | 9:13 am

Futures point to weaker Wall Street open (Reuters)

Reuters - Futures pointed to a slightly weaker Wall Street open on Monday after strong gains on Friday. By 0854 GMT (4:54 a.m. EDT), S&P 500 futures, Nasdaq 100 futures and Dow Jones futures were down 0.2 to 0.3 percent.

Source: Yahoo! News: Business | 25 Aug 2008 | 9:11 am

Futures point to weaker Wall Street open

LONDON (Reuters) - Futures pointed to a slightly weaker Wall Street open on Monday after strong gains on Friday. By 0854 GMT (4:54 a.m. EDT), S&P 500 futures, Nasdaq 100 futures and Dow Jones futures were down 0.2 to 0.3 percent.

Source: Reuters: Business News | 25 Aug 2008 | 9:11 am

Bank Deputy Governor Charles Bean warns slowdown will drag on

The current economic slowdown is likely to "drag on for some considerable time", the Deputy Governor of the Bank of England, Charles Bean, has warned.
Source: Latest Business News from Times Online | 25 Aug 2008 | 9:09 am

Price controls hurt China refiner

Profits at Asia's biggest oil refiner Sinopec fall as price controls prevent the firm from passing on record crude costs.
Source: BBC News | Business | World Edition | 25 Aug 2008 | 9:01 am

Europe Markets: Stocks in Europe edge lower on thin trading; London closed

Stocks in Europe drifted lower on Monday in thin volumes, paced by a decline in engineering firms such as Alstom and Siemens. Allianz rose on speculation it will soon sell Dresdner to Commerzbank.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 8:44 am

Asia Markets: Hong Kong and Tokyo stocks bounce

Asian markets staged a strong recovery Monday, with Hong Kong and Tokyo stocks leading the charge as investors snapped up financials such as HSBC Holdings and Mitsubishi UFJ Financial Group.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 8:41 am

Danish Central Bank buys out ailing bank

COPENHAGEN, Aug 25 - Denmark's central bank and a vehicle of the Danish financial sector would buy Roskilde Bank because no other offers, domestic or foreign, had been received for the struggling bank...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 8:15 am

KDB cautioned on global bank M&A hunt (Reuters)

Reuters - A top regulator on Monday voiced concern about state-run Korea Development Bank's (KDB) interest in buying a global bank, saying it should be just a "cheerleader" and let local private banks take the lead in any such purchase.
Source: Yahoo! News: Business | 25 Aug 2008 | 8:03 am

KDB cautioned on global bank M&A hunt

SEOUL (Reuters) - A top regulator on Monday voiced concern about state-run Korea Development Bank's (KDB) interest in buying a global bank, saying it should be just a "cheerleader" and let local private banks take the lead in any such purchase.

Source: Reuters: Business News | 25 Aug 2008 | 8:03 am

Illegal workers

Why illegal immigration is a hot US election issue
Source: BBC News | Business | World Edition | 25 Aug 2008 | 8:00 am

Nicox says Pfizer drops glaucoma drug study in Asia

PARIS (Reuters) - French biotechnology firm Nicox said on Monday U.S. partner Pfizer had decided not to launch Phase III studies in Asia of an experimental treatment of glaucoma and ocular hypertension.

Source: Reuters: Business News | 25 Aug 2008 | 7:48 am

Media Digest 8/25/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, US car sales are likely to have another large drop in August.

Reuters reports that Bernanke would like to see broader regulation of the financial markets.

Reuters reports that most participants at a Fed summit were gloomy about the economy.

Reuters writes that a new Congress may reverse some of the plans that Paulson has put in to make the financial system more stable.

The Wall Street Journal writes that the mining industry is being hurt by significant capital spending and falling commodities prices.

The Wall Street Journal reports that China's growth has come from policies which as not likely to be effective any longer.

The Wall Street Journal reports that Tropicana will put up one of its casinos for auction.

The Wall Street Journal writes that experts say putting money into Fannie Mae (FNM) and Freddie Mac (FRE) may not help the economy.

The Wall Street Journal reports that the bond market is flashing concerns about the financial future.

The Wall Street Journal reports that Sinopec (SNP) says profits dropped 87% on higher oil prices.

The Wall Street Journal reports that NBC did not make much money on its web coverage of the Olympics.

The Wall Street Journal writes that the uninsured will spend $30 billion on medical car this year.

The Wall Street Journal reports that a tough second half could lead to consolidation in the investment banking industry.

The Wall Street Journal reports that net income at China Construction bank rose 71% on higher interest income.

The New York Times reports that new drilling technology is driving down the price of natural gas.

The New York Times writes that Yahoo! (YHOO) and NBC (GE) got huge audiences for the Olympics.

The New York Times reports that the Fed is still discussing raising interest rates to combat inflation.

The FT writes that a year after the beginning of the financial crisis, central banks are still struggling with how to handle the system's problems.

The FT reports that bond fund-raising prices have soared.

Bloomberg reports that the premiums banks are setting for loaning short-term cash are rising sharply.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Aug 2008 | 7:48 am

Asia Markets 8/25/2008 (LFC)(PTR)

Most markets in Asia rose.

The Nikkei moved up 1.7% to 12,879. Yamaha rose 1.2% to 1802. All Nippon Air rose 1.3% to 385.

The Hang Seng moved up 3.1% to 21,016. China Life (LFC) rose 3.2% to 27.85. PetroChina (PTR) rose 3% to 9.93.

The Shanghai Composite rose .3% to 2,413.

Data from Reuters

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Aug 2008 | 7:23 am

Australia allows China investment

Australia approves China's recent purchase of a stake in mining giant Rio Tinto despite fears it could harm national interests.
Source: BBC News | Business | World Edition | 25 Aug 2008 | 7:22 am

Credit crunch prompts surge in employers seeking advice on sacking staff

Employers are increasingly seeking advice on how to sack their staff, lawyers have reported.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 7:01 am

Financial slowdown 'to drag on', Bank of England deputy governor warns

The economic downturn is as bad as the 1970s and could "drag on for some considerable time", one of Britain's most senior economists has said.
Source: Telegraph Business | 25 Aug 2008 | 7:01 am

Financial slowdown 'to drag on', Bank of England deputy governor warns

The economic downturn is as bad as the 1970s and could "drag on for some considerable time", one of Britain's most senior economists has said.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 7:01 am

Credit crunch prompts surge in employers seeking advice on sacking staff

Employers are increasingly seeking advice on how to sack their staff, lawyers have reported.
Source: Telegraph Business | 25 Aug 2008 | 7:01 am

'Middle market' private equity firms still making investments

Smaller players focused on mid-size companies have emerged as a bright spot as their giant industry brethren severely curtail or halt activity.

The economy is soft and the credit markets are tight, but that hasn't stopped Triton Pacific Capital Partners from making deals.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

Advice on moving a home business to an office space

Bringing sales up in a down economy

Strategies to thrive during tough times include reconnecting with clients, considering a merger and retooling products and services.

Expanding your business in a down economy can be difficult. In many cases it requires you to think differently and more creatively, as well as to re-evaluate your strengths and weaknesses, experts say.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

Inflation, home-sales data expected

Personal spending and income figures also are expected. Month-over- month inflation is expected to be up.

Investors will be watching this week to see whether the price of crude oil continues to fall or bounces back up again after a seesaw last week -- up more than $5 on Thursday, followed by a $6 drop Friday.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

IPhone software developers stifled under Apple's gag order

Programmers remain bound to not discuss how they create applications, potentially restraining innovation.

By creating games and other programs for the iPhone, software developers hoped to find millions of new customers. But they didn't expect to feel muzzled.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

Designing a marketing strategy for artists' rep 411 Creatives

Owner Susan Reese should increase sales calls, polish her promotional material and hire an assistant to boost revenue.

As a serial entrepreneur, Susan Reese knows a business opportunity when she sees one. She's learned the hard way to look for more than just a great idea.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

'Tropic Thunder' holds top spot at box office

The DreamWorks film starring Ben Stiller pulls in $16.1 million for the weekend. 'House Bunny' is No. 2.

The boys narrowly beat the girls at the box office as DreamWorks' "Tropic Thunder" held on to the No. 1 spot for another weekend.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

ThinkFilm and Chairman David Bergstein face allegations of unpaid bills

In the last few months, Bergstein and ThinkFilm have been dogged by a string of lawsuits from associates who allege they were stiffed.

Hollywood is a club. But when an outsider with bundles of cash arrives on the scene, the newcomer usually is granted immediate entree. Talent agents, hungry to land clients their next movie, flock to anyone with an open checkbook.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

Designing a marketing strategy for artists' rep 411 Creatives

Owner Susan Reese should increase sales calls, polish her promotional material and hire an assistant to boost revenue. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Aug 2008 | 7:00 am

FBI saw threat of mortgage crisis

A top official warned of widening loan fraud in 2004, but the agency focused its resources elsewhere.

Long before the mortgage crisis began rocking Main Street and Wall Street, a top FBI official made a chilling, if little-noticed, prediction: The booming mortgage business, fueled by low interest rates and soaring home values, was starting to attract shady operators and billions in losses were possible.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

Advice on moving a home business to an office space

Dear Karen: My home business is growing and I'm considering a move to an office space. How do I decide whether to do it? Answer: Budget out your first-year office expenses and determine whether your revenue can keep pace. Figure in overhead, such as utilities and equipment, and personnel (you may need to hire an office manager or receptionist). Don't forget the loss of your home office tax deduction.

Source: L.A. Times - Business | 25 Aug 2008 | 7:00 am

Precision Drilling to buy Grey Wolf: source (Reuters)

Reuters - Canada's Precision Drilling Trust (PD_u.TO) has reached an agreement to buy U.S. drilling company Grey Wolf Inc for about $2 billion in cash and stock, a source close to the deal said on Sunday.
Source: Yahoo! News: Business | 25 Aug 2008 | 6:51 am

Precision Drilling to buy Grey Wolf: source

PHILADELPHIA (Reuters) - Canada's Precision Drilling Trust has reached an agreement to buy U.S. drilling company Grey Wolf Inc for about $2 billion in cash and stock, a source close to the deal said on Sunday.

Source: Reuters: Business News | 25 Aug 2008 | 6:51 am

Auto sales to decline in August: report (Reuters)

Reuters - U.S. auto makers are expected to report big declines in August domestic sales despite stepped-up incentives, the Wall Street Journal said citing a report by J.D. Power & Associates.

Source: Yahoo! News: Business | 25 Aug 2008 | 6:38 am

Auto sales to decline in August: report

(Reuters) - U.S. auto makers are expected to report big declines in August domestic sales despite stepped-up incentives, the Wall Street Journal said citing a report by J.D. Power & Associates.

Source: Reuters: Business News | 25 Aug 2008 | 6:38 am

Currency: Dollar falls away against US

The New Zealand dollar traded lower against the greenback on a day that the US dollar rose to a two-year high against the pound. Having climbed above US72c for the first time in a fortnight on Friday morning, the New Zealand dollar...
Source: New Zealand Herald - Business | 25 Aug 2008 | 5:28 am

Bernanke looks for new regulatory approach

JACKSON HOLE, Wyoming (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke's suggestion that financial supervision be revamped to take into account the health of the entire system is a logical response to recent market turmoil, but may be a difficult concept to execute.

Source: Reuters: Business News | 25 Aug 2008 | 5:19 am

Fruit and veges drive food prices higher

The latest food price survey has revealed more pain for supermarket shoppers in the fresh produce section. Food prices rose 0.6 per cent in July from June, mainly due to higher prices for fruit and vegetables, Statistics New Zealand...
Source: New Zealand Herald - Business | 25 Aug 2008 | 4:25 am

Beijing's CCB posts 71% rise in first-half net profit

HONG KONG (MarketWatch) -- China Construction Bank, the nation's second largest lender by assets, reported its net profit in the first half climbed 71% from a year earlier, helped by stronger fee and interest income.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 4:13 am

Jon Friedman's Media Web: 'Nightline' must not die!

Join the campaign to save ABC's 'Nightline' from the scrap heap and convince Disney not to pull the plug on this quality show.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 4:01 am

Marsh on Monday: Europe's growth slowdown pressures ECB on rates

LONDON (MarketWatch) -- There is a simple reason why the members of Economic and Monetary Union all have different views about the economy: there is no such thing as Euroland. When a collection of politically and economically disparate states get together to unify their currencies, and wide policy and structural divergences remain years after monetary union is consummated, it is only a matter of time before something goes awry. This may be happening now.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 4:01 am

Business warned: look after customers' private info

Businesses are being warned the mishandling of personal information can cause serious damage. Privacy Commissioner Marie Shroff has unveiled a survey showing 86 per cent of people are annoyed they have become a target of direct...
Source: New Zealand Herald - Business | 25 Aug 2008 | 4:00 am

Loan Star

On the streets of New York, it's not unusual for residents to discard their unwanted bookshelves and television stands on the sidewalk. Often within just a few hours, another crafty New Yorker will have scooped them up, slapped a fresh coat of paint on them, and sold them on eBay.

On Wall Street, something very similar is happening. But instead of dining tables, it's bad loans that are no longer wanted. And one of the biggest junk shoppers for this type of item isn't anywhere near New York.

Dallas-based Lone Star Funds is hungry for distressed debt, and there's no better time than a credit crisis to satiate it. Last month, the private equity firm took $31 billion worth of mortgage loans off of Merrill Lynch's hands for the low, low price of $6.2 billion, financed mostly by Merrill Lynch. It bought the mortgage businesses from CIT Group and Bear Stearns, and it paid $300 million for troubled Accredited Home Lenders. And last week, it made headlines again when it bought IKB, a German bank that was crippled by its exposure to U.S. subprime debt.

For all the attention Lone Star is garnering these days, the firm and its founder maintain a remarkably low profile. John Grayken founded Lone Star in 1995 after cutting his teeth in the distressed investing world as a protégé of Robert Bass. Bass, for those who didn't experience the last credit crisis, was a Texas billionaire who reaped huge returns by sweeping in at the tail end of the savings and loan debacle in the 1980s and turning over loans that others deemed worthless.

These days, Grayken eschews publicity. The 52-year old Harvard Business School alum grew up in Massachusetts but now lives in London with an Irish passport. According to a profile in Bloomberg Markets magazine three years ago, Grayken relinquished his U.S. citizenship in 1999. Like in most profiles of him and his firm, Grayken declined to comment for the Bloomberg story.

There's no shortage of opportunities for a distressed investor today, which is part of the reason why just about everyone seems to want to enter the fray. In the past, Lone Star's toughest competition was often the very banks like Merrill that now find themselves in negotiations with it. Today, Lone Star is up against rival funds from the likes of KKR and Apollo.

But Lone Star has a history that few can match. During the past thirteen years, the $23 billion fund has turned around troubled investments all over the world, with a particular interest in Germany. It buys all types of distressed assets, including the restaurant chain Shoney's and the supermarket chain Bi-Lo.

It targets, and reportedly often achieves, a 25 percent annual return for its investors.

This kind of work doesn't come without controversy. Lone Star recently fought an ugly courtroom battle with prosecutors in South Korea who accused the firm of manipulating the stock prices of an investment it made. A Lone Star executive was found guilty earlier this year and, while an appeals court overturned the conviction, prosecutors are now taking it to Korea's Supreme Court.

But many of Lone Star's deals, such as the Merrill one, look great on paper. Buying loans worth $31 billion for just $6.2 billion—and getting it 75 percent financed by the seller—means that even if all the loans fail, which isn't likely, Lone Star isn't on the hook for much.

But winning an auction for distressed debt isn't even half of the challenge. Unwinding those assets for a profit is in many ways the greater task. And that's where Grayken's other Dallas-based company steps in.

Hudson Advisors puts its 800 employees to work to do everything possible to squeeze blood from the turnips bought by Lone Star. That means unwinding loans one by one, striking deals with new borrowers or negotiating terms with existing ones. In a worst-case scenario, it will foreclose on properties when the loans can't otherwise unload.

It's a tedious process, but Lone Star's objective is to turn over its investments in relatively short order. How Grayken plans to find buyers for Merrill's toxic collateralized debt obligations in this ongoing credit crisis remains a mystery.

But then again, that seems to be the way he likes it.

Related Links
Loan Star
Chart of the Day: Unions Doing Worse Than Ever
Debt Trap

Source: Portfolio.com: Top 5 | 25 Aug 2008 | 4:00 am

Law Firms' Summer Madness

Memo to young law students: Remember that trapeze class, karaoke bar outing, Segway tour of Manhattan, and the trip to the New York Jets training camp you took this summer while working at big-name law firms?

How you behaved at those events were clues to your character and talent—and to your job prospects.

"You really want to know what the personalities are like," said Brian Manoff, a senior recruiter at Pittleman & Associates, an employment firm that places lawyers at law firms.

Scores of young law students have just completed their first summer jobs at the firms they hope to join when they graduate. They discovered that life in the legal fast lane is not all briefs and statutes.

Thanks to law firms' annual rite of passage known as summer programs, it's also laser tag, cooking lessons with a Food Network staffer, casino night, and a round of Quizzo with the senior partners.

With the social events, Manoff said, "the more outside the box the environment, the more the individual shows his true self."

Through the summer programs, the law students, who have typically finished their second year of study and have one more year to go before graduating and taking the bar, are supposedly getting their first taste of the real world.

So the law firms use the programs to decide whom they want to hire upon graduation. Based on their three-month stints, many third-year law school students are now receiving job offers to start full-time when they graduate next spring.

Call it young lawyers gone wild—but the fun is serious business.

"There's certainly a place for absolutely brilliant people, but if the firm is structured where every single lawyer needs to multitask, that firm will be looking more at social skills," said Lynne Traverse, a recruiting and professional development manager at Bryan Cave. "We consider the summer program an 11-week to 12-week interview."

With the carnival of events, law firms aren't striving to keep potential hires from viewing the profession as billable-hour drudgery, with pressure-cooker deadlines and long hours into the night.

Rather, the firms want to know if in addition to stellar grades at a top-notch law school, a potential hire also has the ability to mingle with clients, charm partners, and shine in social functions.

"One of the important parts of the summer program is determining whether we can place a summer in front of a client, in a social or business context," said Traverse. Through the summer social events, "You really can separate people out."

Partners, including the most senior members of the firms and the partner in charge of hiring, typically attend most of the summer events, which often means catered dinners at a partner's home.

The big law firms with hundreds of partners and New York offices tend to really put on a show.

At Davis Polk, one of the nation's largest firms, this year's summers in New York offered trapeze lessons, a softball game at Shea Stadium, and a welcome dinner at the Plaza.

At Morgan Lewis & Bockius, summers were trotted out to karaoke bars, played laser tag, rode go-karts, and took a tour of Manhattan by Segway.

At Proskauer Rose, a large firm with one group of lawyers focused on sports law, they attended the N.B.A. draft and the New York Jets training camp.

Erin Fogerty, a second-year student at New York Law School who worked in Proskauer's New York office this summer, said that young summer lawyers also took a cooking class at a professional chef's midtown Manhattan apartment and savored wine during a tasting at Astra, a trendy event space in midtown Manhattan.

All the events "added a bit to the stress," said Fogerty, who is 26. "You knew that it wasn't fully intended for you to just enjoy yourself, but for the firm to get to know you—are you a nice person, fun, interesting."

One second-year student who worked at Shearman & Sterling this summer called the program "the most fun I've had probably ever." The summers went to amateur night at the Apollo Theater in Harlem and attended a cocktail party at the United Nations. They also learned to play craps and poker, at a casino night at the firm.

"It is stressful and it isn't stressful," said the student, who did not want to be named for fear of offending his future employer, who this month offered him a job when he graduates next spring. "Obviously you're trying to get a job."

With the tightening economy and some law firms even laying off partners, young would-be lawyers face a more competitive job market. That has prompted most to put their best foot forward this summer.

"Every year, there is a story or two of a summer who behaves really badly," said one young law student who worked at a prominent Washington firm. He also declined to identify himself, his school, or the firm. "But this year, everybody seemed on their best behavior."

Still, the law student questioned whether fun social events really gave students a taste of the reality of law firms, where associates are typically asked to put in long hours and weekends in back-breaking legal drudgery.

Even so, different law firms have different cultures—and the summer programs are one clue to a firm's ethos.

Cooley Godward Kronish, a West Coast-based firm, took their summers rock climbing in Santa Cruz, California. "Once there, summer associates, associates, and partners put their fear of heights to the test and enjoy an exciting day of climbing," the firm's website says.

In recent years, Bryan Cave's office in Irvine, California, treated summers to a white-water rafting trip—over class IV rapids.

"We're not going to do that again," Traverse said. "Some people got freaked" when they got chucked over the side by violent water.

On the calendar this year instead was a limousine cruise through Napa Valley for wine tasting.

Source: Portfolio.com: Top 5 | 25 Aug 2008 | 4:00 am

Peter Brimelow: Is oil headed for a fall?

NEW YORK (MarketWatch) -- Is the oil price spike over? And if the recent increase in oil prices hurt the economy, how much did the two-decade decline in oil prices help it?

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 3:32 am

Australia OKs Chinalco's bid for enlarged Rio stake

HONG KONG (MarketWatch) -- The Australian government has given the go-ahead for Aluminum Corp. of China Ltd.'s (Chinalco) bid to enlarge its stake in mining giant Rio Tinto.

Source: MarketWatch.com - Top Stories | 25 Aug 2008 | 3:14 am

Profits up at Sth Canterbury finance - now $2b in assets

South Canterbury Finance is reporting a 22 per cent rise in total assets to $2 billion, " following a solid performance in a difficult operating year". Net profit before tax (NPBT) for the year to the end of June rose 75 per cent...
Source: New Zealand Herald - Business | 25 Aug 2008 | 3:00 am

Sky City profits down 49pc on cinema writedown

Sky City Entertainment Group, owner of Auckland's Sky City casino, has posted a 49 per cent fall in full year net profit to $49.9 million. But when adjusted for non-recurring items, which took into account a $60m write down in...
Source: New Zealand Herald - Business | 25 Aug 2008 | 2:00 am

Law Firms' Summer Madness

On the calendar this year instead was a limousine cruise through Napa Valley for wine tasting.

Source: Portfolio.com: Top 5 | 25 Aug 2008 | 2:00 am

Loan Star

On the streets of New York, it's not unusual for residents to discard their unwanted bookshelves and television stands on the sidewalk. Often within just a few hours, another crafty New Yorker will have scooped them up, slapped a fresh coat of paint on them, and sold them on eBay.

On Wall Street, something very similar is happening. But instead of dining tables, it's bad loans that are no longer wanted. And one of the biggest junk shoppers for this type of item isn't anywhere near New York.

Dallas-based Lone Star Funds is hungry for distressed debt, and there's no better time than a credit crisis to satiate it. Last month, the private-equity firm took $31 billion worth of mortgage loans off of Merrill Lynch's hands for the low, low price of $6.2 billion, financed mostly by Merrill Lynch. It bought the mortgage businesses from CIT Group and Bear Stearns, and it paid $300 million for troubled Accredited Home Lenders. And last week, it made headlines again when it bought IKB, a German bank that was crippled by its exposure to U.S. subprime debt.

For all the attention Lone Star is garnering these days, the firm and its founder maintain a remarkably low profile. John Grayken founded Lone Star in 1995 after cutting his teeth in the distressed investing world as a protégé of Robert Bass. Bass, for those who didn't experience the last credit crisis, was a Texas billionaire who reaped huge returns by sweeping in at the tail end of the savings and loan debacle in the 1980s and turning over loans that others deemed worthless.

These days, Grayken eschews publicity. The 52-year-old Harvard Business School alum grew up in Massachusetts but now lives in London with an Irish passport. According to a profile in Bloomberg Markets magazine three years ago, Grayken relinquished his U.S. citizenship in 1999. Grayken, who doesn't comment for most stories about him, didn't offer a reason why.

There's no shortage of opportunities for a distressed investor today, which is part of the reason why just about everyone seems to want to enter the fray. In the past, Lone Star's toughest competition was often the very banks like Merrill that now find themselves in negotiations with it. Today, Lone Star is up against rival funds from the likes of KKR and Apollo.

But Lone Star has a history that few can match. During the past 13 years, the $23 billion fund has turned around troubled investments all over the world, with a particular interest in Germany. It buys all types of distressed assets, including the restaurant chain Shoney's and the supermarket chain Bi-Lo.

It targets, and reportedly often achieves, a 25 percent annual return for its investors.

This kind of work doesn't come without controversy. Lone Star recently fought an ugly courtroom battle with prosecutors in South Korea who accused the firm of manipulating the stock prices of an investment it made. A Lone Star executive was found guilty earlier this year and, while an appeals court overturned the conviction, prosecutors are now taking it to Korea's Supreme Court.

But many of Lone Star's deals, such as the Merrill one, look great on paper. Buying loans worth $31 billion for just $6.2 billion—and getting it 75 percent financed by the seller—means that even if all the loans fail, which isn't likely, Lone Star isn't on the hook for much.

But winning an auction for distressed debt isn't even half of the challenge. Unwinding those assets for a profit is in many ways the greater task. And that's where Grayken's other Dallas-based company steps in.

Hudson Advisors puts its 800 employees to work to do everything possible to squeeze blood from the turnips bought by Lone Star. That means unwinding loans one by one, striking deals with new borrowers or negotiating terms with existing ones. In a worst-case scenario, it will foreclose on properties when the loans can't otherwise unload.

It's a tedious process, but Lone Star's objective is to turn over its investments in relatively short order. How Grayken plans to find buyers for Merrill's toxic collateralized-debt obligations in this ongoing credit crisis remains a mystery.

But then again, that seems to be the way he likes it.

Related Links
Loan Star
Chart of the Day: Unions Doing Worse Than Ever
Debt Trap

Source: Portfolio.com: Top 5 | 25 Aug 2008 | 2:00 am

Hotels Offering Wide Range of End-of-Summer Deals (Deal of the Day)

Hotels now offer everything from free nights and rounds of golf to baggage fee credits.

Source: SmartMoney.com | 25 Aug 2008 | 12:34 am

American investors catch a cold from frozen auction-rate securities

Serge Birbrair is just one of hundreds of thousands of Americans stung by the securities market scandal. James Quinn reports.
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Fate of the blue-chips tells true story of a turbulent year

Visit our Companies & Markets link for more on commodities and currencies. Further data on shares is available at: telegraph.co.uk/shares For breaking news, changing views and trading floor chatter, check out Ben Bland's Market Forces. Body ragged
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Consumers expect higher inflation

The recent fall in oil prices and mortgage rates has failed to allay consumer fears that the cost of living will continue to spiral in the UK, according to a survey by Lloyds TSB.
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Don't worry, recessions are good for the economy

It is looking increasingly likely that the UK will fall into recession, that is to say, aggregate output will fall outright. As the news on the economy has got darker, so the prevailing mood in the country has got gloomier. But are recessions really worth so much gnashing and grinding of teeth?
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Northern Rock sale to Virgin risked £2bn loss

Taxpayers would have lost as much as £2bn if state-owned Northern Rock had been sold to Sir Richard Branson's Virgin or another private bidder, according to Treasury sources.
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

City news (Mon-Fri)

City news (Mon-Fri)
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Pubs hit as drinkers stay home

Further evidence of an emerging stay-at-home economy has been provided by figures showing alcohol sales in Britain's pubs and restaurants declined 8pc in the past year, while the off-trade continued to expand.
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Final salary pension schemes near extinction in private sector

Traditional final salary or defined benefit pensions are "near extinction" in the private sector, according to a report published today by actuaries Aon Consulting.
Source: Telegraph Business | 25 Aug 2008 | 12:01 am

Kirin to tighten its grip on Australian dairy industry: report

Japanese brewery Kirin Holdings, which snapped up the spoils of Fonterra's failed bid for National Foods in Australia, is set to tighten its grip on milk markets there by buying the Dairy Farmers cooperative for A$900 million ($1112m). Kirin...
Source: New Zealand Herald - Business | 24 Aug 2008 | 11:30 pm

Bankers caught between hope and despair

More than a year into the credit crunch, the world's central bank chiefs are still struggling to understand the impact of the squeeze on the global economy
Source: FT.com - US homepage | 24 Aug 2008 | 11:25 pm

Gulf groups raise £8.6bn to diversify economy

Businesses in the Gulf raised a record $16 billion ($£8.64 billion) from share issues in the past year, taking advantage of the surge in liquidity from a huge influx of petro-dollars and foreign investment. The flood of rights issues by Gulf companies comes after record bond issuance locally as companies raised $17 billion in Islamic bonds and $11 billion in corporate debt.$
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

Korean Development Bank refuses to rule out Lehman Brothers bid

Korea Development Bank (KDB) has refused to rule out bidding for Lehman Brothers, the Wall Street investment house, but has hinted that any approach would not be imminent.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

Private shareholders lose £48bn on investments since credit cruch started

Britain's millions of private shareholders have had £48 billion wiped off the value of their investments since the credit crunch hit last summer.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

Britain in no danger of 'sick man of Europe' relapse

The British economy's 16-year period of uninterrupted growth officially ended with the announcement on Friday that second-quarter gross domestic product showed zero growth, rather than the previously estimated 0.2 per cent. Does this really matter to anyone but statisticians or devotees of Guinness World Records? The answer depends on whether this slowdown turns out to be a hiccup or the start to a prolonged period of zero or negative growth. In the former case, the temporary slowdown will soon be forgotten - or will be remembered merely as the statistical by-product of a correction in house prices that was inevitable and overdue.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

Tesco chip-and-PIN lapse leaves it open to drive-in fraud at many petrol outlets

Tesco is exposing credit and debit cardholders to fraud because of delays in the rollout of chip-and-PIN technology at its pay-at-pump petrol stations, The Times has learnt.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

Share sales by directors hit bid defence at Lonmin

Sir John Craven's attempts to defend Lonmin, the platinum producer, from a £33-a-share hostile bid from Xstrata have been undermined by the revelation that he sold two thirds of his personal stake in the company for only £1 a share more.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

Time running out for final-salary schemes

Employers are rushing to close final-salary schemes to new members to escape the extra cost of their employees' increasing longevity.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

November forecasts spark ITV and Channel 4 dispute

ITV has clashed with Channel 4, its rival, over the potential scale of declining advertising in the crucial period running up to Christmas.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

UK disposable income is at its lowest level for 11 years

Families are £2,500 worse off than they were last year as rising food, fuel, energy and tax bills have dragged disposable incomes to the lowest level since Labour came to power in 1997, a new survey suggests. The average family has £1,210 a month to spend after covering essential bills, down from £1,425 last year. This is the first time households have seen their disposable income fall in more than a decade.
Source: Latest Business News from Times Online | 24 Aug 2008 | 11:00 pm

US ready to put Russia nuclear deal on ice

The Bush administration is set to put a high-profile nuclear deal with Russia on hold, according to US diplomats
Source: FT.com - US homepage | 24 Aug 2008 | 10:44 pm

Nochu to buy more securitised products

Norinchukin Bank (Nochu), Japan's fourth largest by assets, plans to increase investments in securitised products, including asset-backed securities and collateralised debt obligations, by at least Y6,000bn ($54bn) over the next year or two
Source: FT.com - US homepage | 24 Aug 2008 | 10:44 pm

Wells Fargo 'unlikely' to pursue larger rival

Wells Fargo, one of the few healthy US financial groups, wants to buy insurance-distribution and wealth-management companies but is "highly unlikely" to bid for a large rival, its chief executive John Stumpf said
Source: FT.com - US homepage | 24 Aug 2008 | 10:44 pm

NZ Shares: Good start for market as leaders gain

The New Zealand sharemarket started the day well, with sound gains among leading stocks. Around 10.10am, the benchmark NZSX-50 index was up 21.52 points to 3333.13, reversing Friday's 20.5-point fall. Sky City shares were down...
Source: New Zealand Herald - Business | 24 Aug 2008 | 10:22 pm

Bond fundraising costs soar

Many banks and companies are paying more to raise money in the bond markets than at any time since the recession in the early 1990s amid signs that the financial crisis is deepening
Source: FT.com - US homepage | 24 Aug 2008 | 6:50 pm

China Petroleum (SNP) Margins Hammered By Communist Gas Pricing

China's oil and gas price policy may be good for drivers of cars and trucks in this huge communist country, but it is really bad for profits of the nation's oil companies. China Petroleum & Chemical (SNP) had its margins destroyed by the central government caps on gas and diesel priced.

Too bad the same program is not available in the US. Gas would be $1.50 a gallon.

According to Bloomberg, China Petroleum, Asia's biggest oil refiner, "posted an 87 percent drop in second- quarter profit after government caps on fuel prices prevented the company from passing on record crude oil costs to consumers."

Even the credits that China gives to its large refiners and exploration companies cannot offset the huge increase in the cost of oil to the petroleum companies compared to the unusually low prices they are forced to charge for gas. If crude stays above $100 and petrol prices are kept rock bottom, earnings at China Petroleum should actually get worse.

The Chinese energy pricing system does offer some insight into how the US could cap inflation, if it were so inclined. Gasoline and jet fuel may have dropped slightly from their peaks a month ago, but the prices are still too high to help the auto companies and airlines stage any recovery. The average citizen still faces increasing fuel and commodities prices which are eroding his buying power which, in turn, prevents consumer spending.

At this point, the federal government can hand out more tax rebates or pump billions of dollars into troubled banks. The capital moved from the Fed to banks and brokerages is not being passed on to consumers.

Or Washington could do something novel and follow China's lead in stimulating the economy and keeping fuel prices low at the same time.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Aug 2008 | 6:41 pm

Olympics prove a winner for NBC ratings

Record ratings for NBC Universal's coverage of the Olympic Games should silence speculation about General Electric's commitment to the US broadcaster, its chief executive said
Source: FT.com - US homepage | 24 Aug 2008 | 6:05 pm

Fuel woes big issue for Air NZ full year

When Air New Zealand announced its half-year result at the end of February chief executive Rob Fyfe said the future profits were all about the oil price. Oil had then just nudged $US102 a barrel. Since then, it's got much worse...
Source: New Zealand Herald - Business | 24 Aug 2008 | 5:00 pm

Canterbury the place to be, says ASB scoreboard

Auckland needs an energy injection and Canterbury wins gold as the place to be, says the regional economic scoreboard compiled by ASB. The scoreboard takes the latest quarterly regional statistic and ranks the economic performance...
Source: New Zealand Herald - Business | 24 Aug 2008 | 5:00 pm

Indian Ink's sights on Asia

A trio of original New Zealand plays has become so successful internationally that the theatre company that owns them is about to franchise the productions in Asia. Jacob Rajan and Justin Lewis' plays Krishnan's Dairy, The Candlestickmaker...
Source: New Zealand Herald - Business | 24 Aug 2008 | 5:00 pm

Whatever happened to ...? Home of the Week updates

Source: L.A. Times - Business | 24 Aug 2008 | 3:16 pm

Poll fears ahead of Democratic convention

Obama supporters fear Clintons may steal expected opinion poll boost from presidential convention
Source: FT.com - US homepage | 24 Aug 2008 | 2:50 pm

Apple (AAPL): The iPhone Heads To Russia

It looks like more communists will be buying Apple (AAPL) iPhones. The handset is almost certainly going to be available in China this year. Now it appears that there is a deal in place to sell the iPhone in Russia.

A market source told Reuters Mobile TeleSystems, Russia's largest carrier, had agreed with Apple to sell iPhones, probably starting in October.

The move is a critical one for Apple. While the iPhone is readily available in the US and Europe, it will never have significant global market share if it does not do well in India, Russia, China, and Latin America. The handsets are available in these regions, but they are "unlocked" versions which are not offered by a specific carrier which has a sales franchise from Apple.

A year ago, it would have been impossible to imagine that Apple could sell 20 million iPhones a year. That would still only be about 15% of the global annual units sales for Motorola (MOT), but the iPhone has a much higher price per handset than cell phones from other manufacturers.

Skeptics have said that the iPhone could never take the place of the iPod as a huge source of revenue for Apple. It may turn out that the assumption is wrong.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Aug 2008 | 12:08 pm

BE backer 'proposes Centrica tie'

One of the largest shareholders in nuclear power generator British Energy calls for it to merge with Centrica, it is reported.
Source: BBC News | Business | World Edition | 24 Aug 2008 | 11:39 am

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