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Virgin Atlantic claims to have won premium passengers from BAVirgin Atlantic has stoked its war of words with rival BA this morning, by claiming it has gained passengers from the company following its problems at Heathrow's Terminal Five.Source: Telegraph Business | 26 Aug 2008 | 2:55 pm Lorillard Viewed as `Best Positioned' by Goldman SachsSource: Bloomberg - All Podcasts | 26 Aug 2008 | 2:13 pm Consumer confidence risesA key measure of consumer confidence rose in August and beat economists' expectations, according to a report issued Tuesday.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 2:10 pm Consumer confidence jumps in Aug: reportNEW YORK (Reuters) - Consumer confidence recovered far more than expected in August as worries over inflation eased, the Conference Board said on Tuesday.Source: Reuters: Business News | 26 Aug 2008 | 2:09 pm July new homes sales rise; June revised downWASHINGTON (Reuters) - Sales of newly constructed U.S. single-family homes in July were lower than economists expected but rose from a June pace that was the slowest in nearly 17 years, a government report showed on Tuesday.Source: Reuters: Business News | 26 Aug 2008 | 2:08 pm Finishing Off The AMD (AMD) Break-Up: 24/7 Wall St. Worst Case Plan
It was hard to find an analyst who believes that the transaction will cure what ails AMD. It still must pick up market share in the server and PC businesses from larger competitor Intel (INTC) and out-source a good deal of its manufacturing to save money. AMD's board might as well complete the break-up of the company now. AMD's shares are down well over 70% in the last two years and trade at $6. Its market cap is off to $3.6 billion. The firm has debt of $5 billion. In the last quarter, AMD had revenue of just over $1.3 billion and an operating loss of $143 million. It is in no condition to attack its debt load. The most attractive piece of AMD is its graphics chip business. The company got these assets by buying ATI. As high-end PCs run more video and gaming programs, AMD, Intel, and Nvidia (NVDA) stand to make a great deal of money in this sector. The graphics chip portion of AMD has a revenue run rate of about $1 billion per year. Nvidia is trading near a 52-week low and its multiple of market cap to sales is almost 2x. That would make the AMD graphics chip business worth at least $2 billion. At the high end of Nvidia's 52-week trading range, the value would be closer to $5 billion. AMD has a chance to sell or spin-out its graphics chips business. The parent company would keep the PC and server chip operations which is where most of the competitive risk is. The firm would continue to battle Intel, meaning its gross margins are not likely to be good. But, it would have very little debt and would likely have fairly good years when PC sales rates are strong. There are no catalysts to drive up AMD's value. It will have to create one itself. Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 2:08 pm US house prices 'see record fall'US house prices were down a record 15.4% in the April and June quarter compared with a year ago, a report says.Source: BBC News | Business | World Edition | 26 Aug 2008 | 2:00 pm Home prices plummet 15.4%U.S. home prices fell a record 15.4% in the second quarter compared with last year, according to the latest S&P/Case-Shiller national home price index report.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 1:59 pm Oil rises as hurricane threatens GulfOil prices pushed higher Tuesday as Hurricane Gustav threatened the oil infrastructure in the Gulf of Mexico.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 1:57 pm IPOs: On track for a bustIt's an annual ritual on Wall Street - the fourth quarter IPO season, when a flurry of companies make their debut on the public markets before New Year's. But given today's volatile market, and the dismal performance this month of what seemed sure to be a no-brainer IPO in Rackspace, you have to wonder what kind of year-end bump we might get.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 1:53 pm US house price declines slowingUS home prices posted a record annual decline of 15.9 per cent in June, but the pace of monthly drops slowed significantly, offering some hope that the ailing US housing market is edging towards a reboundSource: FT.com - US homepage | 26 Aug 2008 | 1:52 pm Cosco Pacific profit jumps as container turnover pounds higherStrong turnover in container shipping at Cosco Pacific Ltd.’s terminals help fuel double-digit growth in first-half profit against adjusted figures for the year-ago period, results show.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:51 pm Commodities stocks drag Europe lowerMining and metals stocks led European shares downhill for a second consecutive session on Tuesday tracking sharp overnight losses on Wall Street.At midday, the FTSE Eurofirst 300 fell 0.6 per cent to 1,161...Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 1:50 pm Stocks churn at the openStocks were mixed at the open on Tuesday after a housing report showed home prices tumbled more than 15% in the second quarter and as investors awaited a slew of economic reports.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 1:48 pm Fannie, Freddie capital can absorb losses: reportNEW YORK (Reuters) - Fannie Mae and Freddie Mac , the two biggest U.S. mortgage finance giants, have enough capital to absorb probable losses through the end of the year, according to Citigroup equity research.Source: Reuters: Business News | 26 Aug 2008 | 1:48 pm Dollar surges to 6-month high vs. euroRead full story for latest details.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 1:47 pm 24/7 Wall St. Day Trading Alerts (TMA)(MRVL)(AEO)(CLNE)(COH)
Thornburg Mortgage (TMA), a highly risky mortgage company stock is up sharply. Several chip firms lead by Marvell Technology (MRVL) are down on negative brokerage reports. American Eagle Outfitters (AEO) is off after earnings. Douglas A. McIntrye Source: 24/7 Wall St. | 26 Aug 2008 | 1:46 pm Wall St slips on oil, housing price data (Reuters)
Source: Yahoo! News: Business | 26 Aug 2008 | 1:44 pm Wall St slips on oil, housing price dataNEW YORK (Reuters) - Stocks slipped on Tuesday as oil prices rose and data showed prices of U.S. single-family homes fell at a record pace in June.Source: Reuters: Business News | 26 Aug 2008 | 1:43 pm Virgin Atlantic swings to first-quarter profitVirgin Atlantic on Tuesday says it swung to a profit and its planes were fuller in the first quarter as it gained passengers from British Airways following the botched opening of the latter’s new terminal at London’s Heathrow airport.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:40 pm Fannie, Freddie capital can absorb losses: reportNEW YORK (Reuters) - Fannie Mae and Freddie Mac , the two biggest U.S. mortgage finance giants, have enough capital to absorb probable losses through the end of the year, according to...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:39 pm Home prices fell at record pace in June: reportNEW YORK (Reuters) - Home prices fell a record annual 15.9 percent in June, but the monthly rate of decline slowed from May which suggested the decimated housing sector may be stabilizing, according to Standard & Poor's on Tuesday.Source: Reuters: Business News | 26 Aug 2008 | 1:37 pm Stocks edge lower ahead of economic dataWall Street is down slightly in early trading as investors await reports on consumer confidence and new home sales. Investors expect the Commerce Department to report new home sales...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:35 pm Seven Summits Research Releases Alerts on AAPL, FSLR, MET, UNH, and ELNCHICAGO, Aug. 26 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:31 pm Economic Report: Home prices succumb to record fall in June: Case-Shiller dataU.S. home prices fall at a record 15.9% year-over-year rate in June, stepping up the pressure on an already-fragile financial system.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:31 pm Seven Summits Research Releases Alerts on RIMM, AIG, NOK, HK, and ESRXCHICAGO, Aug. 26 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:31 pm AICPA Tells Taxpayers to Check IRS Rules Before Deciding to Donate Used Car to CharitySave the Deduction or Make a Bigger Down Payment on a New Car To Get Extra Mileage Out of the Deduction WASHINGTON, Aug. 26 /PRNewswire/ -- High gas prices are...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:30 pm Mortgage approvals tumble as consumers shun debtThe economic downturn has seen a dramatic reduction in the number of mortgages approved as consumers show an increasing reluctance to take out loans and a determination to tackle their credit card debt...Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 1:30 pm Mortgage approvals tumble as consumers shun debtThe economic downturn has seen a dramatic reduction in the number of mortgages approved as consumers show an increasing reluctance to take out loans and a determination to tackle their credit card debt.Source: Telegraph Business | 26 Aug 2008 | 1:30 pm Rocky Mountain Chocolate Factory, Inc. Announces Second Quarter Cash Dividend of $0.10 Per ShareDURANGO, Colo., Aug. 26 /PRNewswire-FirstCall/-- Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) (the "Company"), which franchises gourmet chocolate and...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:30 pm MassMutual Retirement Services Offering In-Depth Support to Plan Sponsors and Advisors in Anticipation of New 403(b) RegulationsSPRINGFIELD, Mass., Aug. 26 /PRNewswire/ -- MassMutual Retirement Services Division is reaching out to its existing 403(b) plan sponsor clients and their advisors to...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:24 pm Metals Stocks: Gold falls for third day as dollar rallies against rivalsGold futures fall Tuesday for a third session as a strengthening U.S. dollar diminishes gold’s appeal as an investment alternative.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:22 pm Oil rises to $116 as hurricane strengthensLONDON (Reuters) - Oil rose more than $1 to reach $116 a barrel on Tuesday, bouncing off lows as concerns arose about possible disruption to U.S. offshore oil and gas output from a strengthening Hurricane Gustav.Source: Reuters: Business News | 26 Aug 2008 | 1:21 pm Hewlett-Packard closes EDS purchaseHewlett-Packard on Tuesday completes its $13 billion-plus acquisition of Electronic Data Systems Corp., a move expected to increase its ability to compete with rival IBM Corp.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:14 pm 10 Things Millionaires Won't Tell You (10 Things)They might drive fancy cars, but they also hunt for discounts and worry about retirement.Source: SmartMoney.com | 26 Aug 2008 | 1:13 pm Subprime Today: Communities buy foreclosed homes to fend off decay: newspaperMarketWatch's daily rundown of developments in the subprime, lending and financial markets.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:11 pm Strauss Group: Continued Growth and International ExpansionTEL AVIV, Israel, August 26 /PRNewswire-FirstCall/ -- Strauss Group's (Tel Aviv: STRS) Chairperson, Ofra Strauss, and Erez Vigodman, President & CEO, announced...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:11 pm Indian company to pay $2.6B for Britain's ImperialIndia's state-run Oil & Natural Gas Corp. has agreed to buy Britain's Imperial Energy PLC for $2.6 billion in a cash deal that will help ONGC meet surging fuel demand from its burgeoning...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:09 pm BoCom's profit jumps in first half, may fall in second halfChina’s Bank of Communications Ltd. posts 81% growth in first-half profit but cautioned that its performance may slow during the rest of 2008.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:05 pm Write-down hits Foster's profitsAustralian brewer and winemaker Foster's says profits have fallen 88% after it slashed the value of its wine assets.Source: BBC News | Business | World Edition | 26 Aug 2008 | 1:04 pm S&P: Home prices tumble by record amountA widely watched housing index shows home prices dropping by the sharpest rate ever in the second quarter. The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a...Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Aug 2008 | 1:04 pm N Korea 'halts nuclear disablement'North Korea has said it has suspended disablement of its nuclear facilities and is considering restoring the Yongbyon nuclear reactor, accusing the US of violating a disarmament dealSource: FT.com - US homepage | 26 Aug 2008 | 1:04 pm Stocks Set for Flat StartA day after the selloff, traders waited on the latest housing data and an update on the consumer.Source: SmartMoney.com | 26 Aug 2008 | 1:03 pm NewsWatch: U.S. stock futures edge lower before housing data waveU.S. stock futures edged lower on Tuesday after the last two volatile, low-volume sessions, with traders waiting for three reports on housing to hunt for clues as to whether the long-battered market is showing any sign of recovery.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 1:00 pm MarketWatch First Take: Freddie's bond sale a mixed blessing for GSEInvestors cheered Freddie Mac’s successful sale of $2 billion in securities, but whether the rally continues will depend on how reform will be carried out.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 12:58 pm Dollar increases against the euroThe dollar climbs back to a six-month high against the euro, as fears remain about a European recession.Source: BBC News | Business | World Edition | 26 Aug 2008 | 12:56 pm Futures Movers: Oil futures fall to trade below $115 a barrelCrude-oil prices drift back below $115 a barrel, as traders weigh worries that Hurricane Gustav might present the potential for disruptions in the Gulf of Mexico against concerns about a slowdown in global oil demand.Source: MarketWatch.com - Top Stories | 26 Aug 2008 | 12:56 pm Wall Street mulls economic dataThe stock market was set for a moderately lower opening, following the sharp sell-off of the previous session, as investors continued to fret about the health of the financial sector and waited for important data on the economySource: FT.com - US homepage | 26 Aug 2008 | 12:55 pm Wall Street mulls economic dataUS stocks were set for a moderately lower opening on Tuesday, following the sharp sell-off of the previous session, as investors continued to fret about the health of the financial sector and waited for...Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 12:55 pm Medvedev recognises Georgia rebel regionsRussia president Dmitry Medvedev has signed a decree recognising the independence of South Ossetia and Abkhazia, the two Georgian breakaway regions now controlled by Russian army after the recent conflictSource: FT.com - US homepage | 26 Aug 2008 | 12:55 pm The battle for channel surfersIf you tuned into the season premiere of AMC's hit show Mad Men as I did, you were probably thrilled - giddy, even - to discover that you would be watching an hour of virtually uninterrupted television. Instead of the usual hash of commercials, BMW, the episode's sole sponsor, ran a single 60-second spot tailored to the show about 1960s Madison Avenue pitchmen. The ad featured a documentary-style interview with advertising legend Martin Puris, co-founder of the Ammirati & Puris agency, describing how he came up with the slogan "Ultimate driving machine."Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 12:52 pm Indian Oil Producer Bids for British RivalONGC, Indias largest oil producer, has agreed to a $2.6 billion takeover of the Imperial Energy Corporation, as it works to secure energy to fuel Indias expanding economy.Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 12:47 pm What About Bob?Now that Citigroup has simplified its Byzantine executive structure and given Bob Rubin the new title of senior counselor, the question remains: What exactly has Rubin been doing at Citi? Hammered by the credit crunch, Citi has racked up more than $17 billion in losses in less than a year. Where was Rubin when the bank, along with most of Wall Street, was plunging deeper into risky bets that were tied to a bubble in housing? Citi: Looking Weak The Rubin-Bernanke Phone Call Pandit Named Citi Chief Source: Portfolio.com: Top 5 | 26 Aug 2008 | 12:30 pm Gas prices continue declineGasoline prices fell slightly Tuesday, bringing the total decline in the nationwide average to more than 10% since mid-July, according to a daily survey of gas station credit card swipes.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 12:27 pm Rio Tinto More Than Doubles Half-Year ProfitThe mining giant posted record profit of $6.91 billion for the six-month period on strong demand from China for iron ore and other metals.Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 12:26 pm Euro slumps to six-month low against dollarThe euro fell to a six-month low against the dollar in early trade, as a German business confidence survey posted its worst results for three years and official data showed the German economy contracted...Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 12:24 pm Power firm wins new Olympic dealA Glasgow-based company wins a deal to provide power for the construction of the London 2012 Olympic Village.Source: BBC News | Business | World Edition | 26 Aug 2008 | 12:21 pm HP closes $13.9 billion purchase of EDS (Reuters)
Source: Yahoo! News: Business | 26 Aug 2008 | 12:17 pm HP closes $13.9 billion purchase of EDSNEW YORK (Reuters) - Hewlett-Packard , the computer and printer maker, said on Tuesday it closed the $13.9 billion purchase of Electronic Data Systems Corp., a deal that HP hopes will help it better compete with IBM .Source: Reuters: Business News | 26 Aug 2008 | 12:17 pm Singapore's Temasek doubles profit, fears contagion (Reuters)
Source: Yahoo! News: Business | 26 Aug 2008 | 12:11 pm Singapore's Temasek doubles profit, fears contagionSINGAPORE (Reuters) - Singapore wealth fund Temasek warned of further contagion from the global credit crisis after it doubled its full-year profit by selling billions of dollars of assets.Source: Reuters: Business News | 26 Aug 2008 | 12:11 pm Banks not feeling urge to mergeWith all the difficulties the nation's banking system has had to endure over the past year, it's a surprise that there hasn't been more of an urge to merge.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 12:03 pm Bid activity fails to lift FTSELondon's equity markets fell on Tuesday after a crop of forecast-beating results and bid activity failed to give shares a lift.By midday, the FTSE 100 was down 87.2 points, or 1.58 per cent, 5,418.6. The...Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 11:49 am Doubts grow on Russia's WTO plansRussia's commitment to join the World Trade Organization comes under focus after it questions the value of membership.Source: BBC News | Business | World Edition | 26 Aug 2008 | 11:46 am UTV saved by radio as profits rise 12%UTV, the owner of TalkSport and ITV’s Northern Ireland franchise, said pre-tax profit rose by 12 per cent year on year to £10.4 million, as strong growth in radio offset a 4 per cent fall in television advertising.Source: Latest Business News from Times Online | 26 Aug 2008 | 11:44 am Top Early-Bird Analyst Upgrades & Downgrades (COMV, CRM, V, BRCM, GW, IDTI, MRVL, QELP, STI)These are some of the top analyst calls we are seeing this Tuesday morning:
Jon C. Ogg Source: 24/7 Wall St. | 26 Aug 2008 | 11:34 am Mortgages fall by two thirds in the last yearThe number of mortgages approved by lenders has fallen by two-thirds over the last year, figures released by a leading banking organisation have revealed.Source: Telegraph Business | 26 Aug 2008 | 11:30 am Mortgages fall by two thirds in the last yearThe number of mortgages approved by lenders has fallen by two-thirds over the last year, figures released by a leading banking organisation have revealed.Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 11:30 am Two-thirds of UK homes now onlineLatest official figures show the number of UK households with internet access rose to 16.5 million this year.Source: BBC News | Business | World Edition | 26 Aug 2008 | 11:27 am GM receives Gulf Arab interest in Hummer buyDUBAI (Reuters) - General Motors Corp (GM) has received interest from two separate investors from the Gulf Arab region to buy its Hummer brand, the company's Middle East chief told Reuters on Tuesday.Source: Reuters: Business News | 26 Aug 2008 | 11:23 am Olympics power supplier Aggreko posts record first-half profitsThe British temporary power company that helped put the spotlight on Team GB in Beijing Olympics has turned in a new personal best.Source: Telegraph Business | 26 Aug 2008 | 11:07 am Olympics power supplier Aggreko posts record first-half profitsThe British temporary power company that helped put the spotlight on Team GB in Beijing Olympics has turned in a new personal best.Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 11:07 am Recession worries send euro to new lowThe euro fell to a six-month low against the dollar after a new survey of German business confidence showed the lowest reading for three years and expectations of future activity hit a 15-year lowSource: FT.com - US homepage | 26 Aug 2008 | 11:01 am Big Lots profit tops Street, raises 2008 profit view (Reuters)Reuters - Close-out retailer Big Lots Inc reported an 11 percent rise in quarterly profit that beat market estimates, as shoppers headed to its stores for low prices on furniture, food and paper products, and raised its earnings forecast for the current financial year.Source: Yahoo! News: Business | 26 Aug 2008 | 10:52 am Big Lots profit tops Street, raises 2008 profit view(Reuters) - Close-out retailer Big Lots Inc reported an 11 percent rise in quarterly profit that beat market estimates, as shoppers headed to its stores for low prices on furniture, food and paper products, and raised its earnings forecast for the current financial year.Source: Reuters: Business News | 26 Aug 2008 | 10:52 am Pakistan falls to 2-year lowShares in Pakistan fell to their lowest level for more than two years on Tuesday as the threat of fresh political turmoil was raised by a split in the country's coalition government. The KSE-100 index...Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Aug 2008 | 10:49 am Bank customer data sold on eBayAn investigation into how a computer containing bank customers' personal data was sold on an internet auction site is under way.Source: BBC News | Business | World Edition | 26 Aug 2008 | 10:46 am A Starbucks (SBUX) Share Buy-Back
Starbucks should fit right in. It traded at $40 near the end of 2006. It is down well over 50% since then because of slowing US sales and competition from food chains, especially McDonald's (MCD) Starbucks has brought back its founder and hero Howard Schultz to run the company. He has axed a lot of people and pledged that new product and marketing plans will improve the coffee company's fortunes. Starbucks has a float of just over 700 million shares and a market cap of $11.3 billion. The company still generates about $1 billion in operating income a year. It also has $300 million in cash. The notion that the firm could buy-back $2 billion in stock and cut its available shares by 15% is not at all beyond the financial capacity of Starbucks. If the board thinks the share price is too low, they have a chance to prove it. Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 10:45 am Virgin snatches T5 travellers for profit riseVirgin Atlantic, the airline part-owned by Sir Richard Branson, today claimed to have lured passengers away from British Airways during this spring’s problems with Terminal 5, helping the carrier make a strong start to its financial year.Source: Latest Business News from Times Online | 26 Aug 2008 | 10:43 am Tax row hits Japan economy dealJapanese plans to introduce an economic assistance package are being hit by a political row over income tax.Source: BBC News | Business | World Edition | 26 Aug 2008 | 10:24 am GM (GM) Gets Hummer Purchase Interest From Middle East
As part of a money-saving restructuring, the one brand that GM has expressed significant interest in selling is Hummer, the maker of massive SUVs and pick-ups which probably only average five miles to the gallon of gas. Perhaps it should not be a surprise that one of the first indications of interest in Hummer has come from the Middle East where gas costs about as much as water and investment firms are bloated with profits from high oil prices. According to Reuters, "GM has received interest from two separate investors from the Gulf Arab region to buy its Hummer brand, the company's Middle East chief told Reuters on Tuesday." Since GM needs the money, a dollar is a dollar no matter who is paying it. Arab investors understand that large SUVs still sell well in China, parts of Latin America, and the Middle East. Gas prices are not high everywhere. GM may not lose massive sums on Hummer. The brand does not sell that many vehicles. But, it is an embarrassing symbol for a car company which would like to be viewed as a champion of fuel-efficient cars and one with a new focus on vehicles that will run on natural gas and electricity. At this point those perceptions are completely untrue and Hummer helps undermine the PR effort to advance a change GM's image GM can stand the irony of selling Hummer to interests in the Middle East, the oil-rich region which has helped drive it into the red, as long as it can rid itself of the dead weight of the Hummer image. Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 10:22 am Credit Suisse snaps up AMFC for $384 million$Credit Suisse has agreed a $384 million all-share deal to take control of Asset Management Finance Corporation from its Canadian bank owners in a deal that underscores the strength of the Swiss bank's equity despite the ravages of the credit crunch.$Source: Latest Business News from Times Online | 26 Aug 2008 | 10:10 am Sterling tumbles as markets eye interest rate cutsThe pound fell further today as the market reopened after the bank holiday as foreign-exchange traders intensified bets that the Bank of England is likely to be the only major central bank to cut interest rates by the end of the year.Source: Telegraph Business | 26 Aug 2008 | 10:10 am UK buy bolsters India's InfosysShares in Indian outsourcing firm Infosys rise after it says it has agreed to buy British consulting firm Axon.Source: BBC News | Business | World Edition | 26 Aug 2008 | 9:56 am Learn about money? Just give upWhen Americans are in financial distress, politicians often call for better education. Case in point: The Economic Recovery Act of 2008 allocates funds to improve borrowers' knowledge of home loans.Source: Business and financial news - CNNMoney.com | 26 Aug 2008 | 9:50 am FTSE falls as sterling slumps to two-year lowLondon's leading shares today tumbled by 134.1 points as the pound slid to its lowest level against the dollar since July 2006 and fears rose another Wall Street bank is close to collapse.Source: Latest Business News from Times Online | 26 Aug 2008 | 9:45 am Bank account details sold on eBay for £35Personal bank account details of up to one million Natwest and Royal Bank of Scotland (RBS) customers have been found on a computer that was sold for £35 on eBAY, the online auction site.Source: Latest Business News from Times Online | 26 Aug 2008 | 9:41 am Keeping Fannie Mae (FNM) And Freddie Mac (FRE) Private
Freddie Mac was able to sell $2 billion in short term notes yesterday, but the overall news was better than that. Pacific Investment Management and Loomis Sayles, which control several of the largest bond funds in the US, each said they might put money into preferred shares of the two mortgage companies. Dan Fuss of Loomis told Reuters that the government would have to offer preferred shares that could be converted to common stock. "It is a long-term call on the common stock," Fuss said. "Without such a plan like this, shareholders might get zero. You want zero or ongoing companies?" That is the argument in a nut shell. The government must say that it will not undermine the opportunity for the companies to stay private or it must face a skeptical market which has no interest in investing only to lose all of its money. Treasury does have a way out now. It has the potential of keeping tax-payers from bearing the load of keeping Fannie Mae and Freddie Mac in business. To do so, it will have to undermine the free market system by guaranteeing that some securities in the firms will not be wiped out. If the firms falter, investors will at least be made whole. While the program of guarantees is a form of economic socialism, it is one that allows the tax-payer to backstop an investment instead of making it directly. If Fannie Mae and Freddie Mac make it, the average citizen will have been relieved of the financial burden of keeping important financial firms alive. The Fed and Treasury have already given up on free market solutions for troubled financial companies. It might as well take the next step. Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 9:39 am PetroChina (PTR) Gets Slammed By Chinese Government
China made the case that investors should want to own pieces of its state-controlled companies because it would offer access to the largest firms in the world's most populated country. In theory, the program works. If the central government meddles in the normal course of business, it may not. China insists on keeping gas and diesel prices low. There is a great deal of sense to that for a nation which is the low cost provider of goods for the rest of the world. Transportations price increases would damage the low wage advantages of companies in China. China's export machine would slow. The country would fall into recession. Keeping gas and diesel prices below market also helps address the alarming growth of inflation in the nation. It now stands at almost 10%, and for some products, especially food, the rate of increase is closer to 15%. A sharp spike in fuel prices could break the back of consumer spending within the country. All of that speaks to the wisdom of a policy meant to keep GDP improving sharply. At the same time, it undermines the amount of profit that some of China's largest companies can deliver to shareholders. PetroChina could actually loss money in the second half if oil stays at $115 and it has to offer refined gas at prices which are not available in any other large nation in the world. China could come clean and admit that the central government will continue down a path to undermine investor returns for entities that it took public. It might even offer some compensation. But, that won't happen. Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 9:07 am British mortgage approvals plunge by 65%Fresh gloom descended on the housing market today as it emerged that fewer than 22,500 mortgages were approved last month, a 65 per cent decline on last year and only fractionally above record lows for June.Source: Latest Business News from Times Online | 26 Aug 2008 | 9:01 am German shopper mood remains weakGerman consumer confidence falls to a fresh five-year low, due to continuing recession and inflation fears.Source: BBC News | Business | World Edition | 26 Aug 2008 | 9:01 am Coach (COH) "Might" Buy Back $1 Billion Worth Of Stock
Coach (COH), on the other hand was less optimistic. After noting that it had recently completed its $1 billion buyback announced in November of 2007 (Back when the stock was considerably higher, raising questions about the value generated by this repurchase), Coach said, in the standard boilerplate, that its "Board of Directors has authorized the repurchase of up to $1 billion of its outstanding common stock by June 26, 2010. . . The company may terminate or limit the stock repurchase program at any time." Right: Coach announced that it might, if it feels like it, buy back up to $1 billion i stock and, if it doesn't it won't. Nothing wrong with that, but it's very different from the company saying it "will buy back $1 billion of its stock." The timing of the announcement is also mysterious. Shares of Coach were down nearly 7% on the day, and the buyback looks like an effort to get the stock moving in the right direction again -- something it hasn't done in awhile. With the likes of The Wall Street Journal playing along, it just might work. Zac Bissonnette Source: 24/7 Wall St. | 26 Aug 2008 | 8:47 am Neighbours fails to save Five's TV profitsFive, the broadcaster of Neighbours and CSI, saw its profits wiped out in the first half of the year, amid weak advertising, and investment to support its digital channels Fiver and Five US.Source: Latest Business News from Times Online | 26 Aug 2008 | 8:46 am GM receives Gulf Arab interest in Hummer buy (Reuters)
Source: Yahoo! News: Business | 26 Aug 2008 | 8:46 am Imperial Energy agrees to £1.4bn takeoverImperial Energy, the London-listed oil explorer, agreed to a £1.4 billion takeover offer from India's ONGC Videsh today in a move that appeared to dash the hopes of a rival bid from Sinopec of China.Source: Latest Business News from Times Online | 26 Aug 2008 | 7:56 am Media Digest 8/26/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters writes that two large bond investors may get involved in raising capital for Fannie Mae (FNM) and Freddie Mac (FRE), if the Treasury is involved. Reuters reports that Deltal (DAL) has tapped a $1 billion loan ahead of its merger with Northwest (NWA). .. Reuters reports that MGM says it is not for sale. Reuters reports that a successful debt sale by Freddie Mac has eased concerns about nationalization of the company. Reuters reports that JP Morgan (JPM) has taken a hit of $500 million on its investment in Freddie Mac and Fannie Mae. Reuters writes that bank regulators have put a number of firm on notice to fix their problems or face failure. The New York Times writes that several cities are buying foreclosed homes to maintain them in good condition. The New York Times reports that Honda (HMC) is remaining true to its fuel-efficient roots. The New York Times writes that Gulf states will keep their currency pegs with the US dollar. The New York Times reports that first half profits at PetroChina (PTR) are expected to fall by a third on the rising price of oil. The FT writes that HP (HPQ) has renewed it challenge to IBM (IBM) with its buy-out of EDS. Bloomberg reports that Bank of England may cut interest rates by the end of the year. Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 7:51 am Rio Tinto upbeat on commodities as profits soarRio Tinto, the world's second largest miner, today revealed a 51.8 per cent rise in profit for the first six months of the year due to soaring commodity prices as it reiterated its rejection of BHP Billiton's offer for the group.Source: Latest Business News from Times Online | 26 Aug 2008 | 7:44 am Bovis slashes dividend as reservations halve and profits plummet 83%Bovis, the housebuilder, said that the number of new homes reserved for private buyers had plunged by more than a half, reflecting the impact of the credit crunch on the residential property market.Source: Latest Business News from Times Online | 26 Aug 2008 | 7:25 am Asia Markets 8/26/2008
The Nikkei dropped .8% to 12,779 Yahoo Japan rose 2% to 41750. Yamaha rose 3.2% to 1859. The Hang Seng fell 1.2% to 20,859. Cathay Pacific fell 2.2% to 6.86. Tencent fell 3.6% to 65.10. The Shanghai Composite fell 2.6% to 2,351. Data from Reuters Douglas A. McIntyre Source: 24/7 Wall St. | 26 Aug 2008 | 7:23 am Sterling tumbles: Business roundup Aug 26Sterling has slumped to its weakest levels against the dollar in more than two years, weighed down continuing fears over the health of the UK economy. In early trading it was down around a cent at $1.8436 - levels last seen in July 2006.Source: Telegraph Business | 26 Aug 2008 | 7:15 am Hollywood nerds turn video game night into networking opportunityGroup members commit virtual carnage while expanding their professional contacts.It was dark and drizzling when screenwriter Justin Marks did what many in Hollywood have fantasized during their bleakest career moments: He attacked his agent with a chain saw. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Foreclosures ensnare low-income rentersTenants subsidized by federal Section 8 funds are finding themselves out of a home when the landlord defaults.Ruth Cordoba has never owned a home, but she is feeling the effects of the mortgage meltdown acutely. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Major studio film shoots in Los Angeles grind almost to a haltProduction was ramped up in anticipation of a possible actors strike, with most big-budget movies for next year wrapping by June 30.If not for an epic struggle between alien robots, the streets of Los Angeles might be devoid of major studio drama. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Broadcom to acquire Advanced Micro Devices' digital TV businessThe $193-million deal would position the Irvine chip maker to take advantage of an expected increase in demand in coming years.Irvine-based chip maker Broadcom Corp. moved to acquire Advanced Micro Devices Inc.'s digital television business for $192.8 million Monday, aiming to become a leader in the growing market. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Utility fees sought for environmental research centerA state Assembly panel backs a surcharge for the proposed Climate Change Research and Workforce Development Institute.With this year's legislative session in its final days, lawmakers Monday unveiled a bill mandating new fees from electricity ratepayers to fund a University of California-run global warming research center. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Stocks fall in broad-based sell-off; Dow loses 241 pointsDow falls 241 points in a broad sell-off on concern over the economy, housing market and election.Stocks slumped in a broad-based sell-off Monday as worries about the economy, housing and the presidential election weighed on the market. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Mortgage fraud soars in first quarter, report saysReported incidents of mortgage fraud in the United States jumped 42% in the first quarter of 2008 from a year earlier, with Florida reporting the highest number of cases, according to industry data released Monday.Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Public, private sectors at odds over cyber securityThe government has largely argued that the private sector is better suited to tackle the problem. But big corporations say it's too big for them to handle.Three very big and very different computer security breaches that have dominated recent headlines did more than show how badly the Internet needs major repairs. They also exposed the huge rift between corporate America and the federal government over who should fix it, cyber-security experts say. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Gas prices fall below $4 in CaliforniaTraffic deaths are also declining as Americans change their driving behavior, a study shows.California motorists are paying less than $4 a gallon on average for gasoline for the first time since mid-May, the Energy Department said Monday, while the U.S. average fell for the seventh straight week. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am Home sales rise 3.1% in July, Realtors group saysLow-cost foreclosures lure buyers, but the inventory of unsold properties hits a high.Sales of existing homes rose 3.1% in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the country hit hardest by the housing bust. Source: L.A. Times - Business | 26 Aug 2008 | 7:00 am NZ Currency: Dollar caught in Aussie downdraftThe New Zealand dollar hit its lowest level in a week, dragged down by an Australian dollar that plumbed seven-month lows. By 5pm, the kiwi eased to US69.70c from US70.50c late yesterday afternoon. Against the Aussie, it slipped...Source: New Zealand Herald - Business | 26 Aug 2008 | 5:42 am Democrats paper over lingering divisionsIt was a close call who got the warmest reception on the first night of the Democratic convention in Denver – Ted Kennedy, who broke away from cancer treatment to make a surprise appearance, or Michelle Obama, making her primetime audition for the role of first lady.Source: FT.com - US homepage | 26 Aug 2008 | 5:40 am Pacifica calls on government to sort out 'super' port issueThe decision on a location for the North Island's largest port should be in central government's hands, because parochial councils will never agree where it should be. This is the opinion of Rod Grout, chief executive of coastal...Source: New Zealand Herald - Business | 26 Aug 2008 | 3:00 am Former trade unionist to quit Air NZ boardFormer union leader Ken Douglas says he will retire from the board of Air New Zealand on September 24. Chairman John Palmer said Mr Douglas had made an outstanding contribution to the airline since he joined the board in February...Source: New Zealand Herald - Business | 26 Aug 2008 | 2:30 am Growth should start again 'from early 2009'Investment bank JP Morgan expects the New Zealand economy will start growing again in early 2009, after a series of interest rate cuts by the Reserve Bank. It has, however, forecast New Zealand inflation will continue to rise...Source: New Zealand Herald - Business | 26 Aug 2008 | 2:05 am Woolworths beats earnings targetAustralian grocery giant Woolworths has admitted economic uncertainty will hold back growth in the current year despite a 25.7 per cent jump in its 2007/08 annual profit. Woolworths today reported a net profit of A$1.63 billion...Source: New Zealand Herald - Business | 26 Aug 2008 | 2:00 am Fannie-Freddie crisis spreadsThe crisis gripping Fannie Mae and Freddie Mac spread across the financial system as JPMorgan Chase warned of a possible $600m (£323m) loss from its holdings of preferred shares in the two mortgage financing groupsSource: FT.com - US homepage | 26 Aug 2008 | 1:49 am Weak opening to ASXThe Australian share market opened more than two per cent lower today, led by the insurers and property companies, after US equities tumbled overnight on intensfied fears that the economy is slowing. Just after opening the benchmark...Source: New Zealand Herald - Business | 26 Aug 2008 | 1:30 am Trends & Innovations - MondayGetting rid of pests going greenSource: Investor's Business Daily: BUSINESS | 26 Aug 2008 | 1:10 am After The Close - MondayANADARKO PETROLEUM (APC), an oil and gas company, authorized a stock buyback of $5 bil, or about 18% of the company's stock at current prices. It...Source: Investor's Business Daily: BUSINESS | 26 Aug 2008 | 1:10 am In Brief - MondayChina Life Insurance (LFC), the nation's top life insurer, said net profit for 2008's first half fell 32% to $2.3 bil, but beat expectations....Source: Investor's Business Daily: BUSINESS | 26 Aug 2008 | 1:10 am Business Briefs - MondayPrecision to acquire Grey for $2 bil. The Canadian drilling company will buy rival gas driller Grey Wolf in a cash and stock deal. Precision...Source: Investor's Business Daily: BUSINESS | 26 Aug 2008 | 1:10 am The Sky's The Limit If Satellite Maker Wins Space Station ContractsIn early August, rumors swept Wall Street that a satellite built by Orbital Sciences had failed to launch properly in Kazakhstan. For a brief...Source: Investor's Business Daily: BUSINESS | 26 Aug 2008 | 1:10 am Air NZ: No reduction in flights despite profit fallAir New Zealand has no further plans to cut capacity on long haul flights despite crippling fuel prices which imposed an extra $300 million cost over the past year. The airline posted a 24 per cent drop in profit for the year to...Source: New Zealand Herald - Business | 26 Aug 2008 | 12:30 am Bluescope selling NZ iron sands businessBlueScope Steel Ltd will sell its New Zealand iron sands mining and export operation to Cheung Kong Infrastructure Holdings Ltd for $250 million (A$204.2 million). The sale is expected to be completed in the fourth quarter of calendar...Source: New Zealand Herald - Business | 26 Aug 2008 | 12:30 am Drought drags Contact Energy profit downContact Energy has posted a 1 per cent fall in full year net profit to $237.1 million, after having to supply its South Island demand by purchasing electricity from the spot market at a "significant" loss during some periods. Contact...Source: New Zealand Herald - Business | 26 Aug 2008 | 12:20 am Marac Finance profit upFinance company Marac Finance Ltd today said its net operating income rose 17 per cent to $70.2m in the year to June 30. It today posted a net profit after tax of $25.9m, an increase of 5 per cent. The company's parent, Pyne...Source: New Zealand Herald - Business | 26 Aug 2008 | 12:10 am Kuwait plans 20pc rise in productionLeading oil producer Kuwait expects to raise production by about half a million barrels a day in early 2009, in a bid to take a larger share of the world's growing demand for oil.Source: Telegraph Business | 26 Aug 2008 | 12:01 am Lehman Brothers may sell stake in investment armUp to five private equity houses have expressed an interest in taking a stake in Lehman Brothers' investment management unit as part of the bank's plan to raise its capital position.Source: Telegraph Business | 26 Aug 2008 | 12:01 am City news (Mon-Fri)City news (Mon-Fri)Source: Telegraph Business | 26 Aug 2008 | 12:01 am Pensions in buyout bonanzaThe number of Britons whose pension schemes will be run by buyout specialists is expected to soar from 80,000 currently to 180,000 by the end of the year.Source: Telegraph Business | 26 Aug 2008 | 12:01 am Doubts cast on Zardari's mental healthAsif Ali Zardari, the leading contender for the presidency of nuclear-armed Pakistan, was suffering from severe psychiatric problems as recently as last year, according to court documents filed by his doctorsSource: FT.com - US homepage | 25 Aug 2008 | 10:31 pm Finnish `Arctic Hysteria' Show, Kronos Quartet, Poet AeurbachSource: Bloomberg - All Podcasts | 25 Aug 2008 | 9:41 pm VIX Index of U.S. Stock Option Prices Advances 11.5 % to 20.97Source: Bloomberg - All Podcasts | 25 Aug 2008 | 9:34 pm Boyle of Chapin Hill Advisors Looking to Inverse ETFsSource: Bloomberg - All Podcasts | 25 Aug 2008 | 9:19 pm The Dangers of Medical Credit Cards (Rip-Off of the Week)Cards created for elective surgeries are increasingly being offered to the truly sick.Source: SmartMoney.com | 25 Aug 2008 | 9:14 pm New Tests Loom for Post-Olympic China (Foreign Affairs)With the Beijing Games wrapped up, market troubles lurk in Shanghai.Source: SmartMoney.com | 25 Aug 2008 | 8:57 pm Financial ETFs Tumble on AIG, Lehman (Daily ETF Wrap-Up)Market tumbles as AIG, Lehman lead financial exchange-traded funds lower.Source: SmartMoney.com | 25 Aug 2008 | 8:47 pm 5 Most Tax-Friendly U.S. Cities for Travelers (Deal of the Day)These cities roll out the welcome mat to business travelers with low taxes and fees.Source: SmartMoney.com | 25 Aug 2008 | 8:45 pm Denver's Hickenlooper Says Biden Great Choice for ObamaSource: Bloomberg - All Podcasts | 25 Aug 2008 | 8:44 pm Lipsky, Lanman Discuss European Central Bank's ChallengesSource: Bloomberg - All Podcasts | 25 Aug 2008 | 8:42 pm Makin, Fischer Discuss Market Regulation, Global EconomySource: Bloomberg - All Podcasts | 25 Aug 2008 | 8:34 pm Dow Drops 242 PointsAnxiety over the financial sector sent the major indexes sharply lower, reversing Friday's rally.Source: SmartMoney.com | 25 Aug 2008 | 8:14 pm 3 Stocks to Watch: AMD, QRCP, AIG (Market Movers)AMD cuts its losses while AIG sets off more alarms. Quest seeks answers on funds.Source: SmartMoney.com | 25 Aug 2008 | 8:00 pm Is an enviromaniac loose in your office?While studies show that most workers want their firms to do more for the environment, some individual employees are going above and beyond the call of the carbon footprint. Beth Teitell reports.Source: Marketplace | 25 Aug 2008 | 7:37 pm Fruit company grew power, problemsTrouble's not new to Caribbean banana growers. Author Peter Chapman chronicles the rise and fall of the company at the center of a lot of that trouble, the United Fruit Company, in his book, "Bananas!" He talks with Kai Ryssdal.Source: Marketplace | 25 Aug 2008 | 7:37 pm Denver's ambitions are a mile highDenver's not a town that normally gets a whole lot of media attention, because it's far from bigger economic and political centers of power. But some in the city think they can show the rest of us the shape of our economic future. Jeremy Hobson reports.Source: Marketplace | 25 Aug 2008 | 7:37 pm For better schools, raise expectationsNational polls consistently show Americans think Democrats are better at dealing with education than Republicans are. But commentator Steve Barr says that impression is misguided.Source: Marketplace | 25 Aug 2008 | 7:37 pm U.S. poverty line seen as poor indicatorThe Census Bureau on Tuesday will release its updated figures on how many Americans are living in poverty. But there's actually a big debate about what the federal poverty line really measures. Steve Henn reports.Source: Marketplace | 25 Aug 2008 | 7:37 pm Putin says Russia may drop WTO goalDespite Russia's decade-and-a-half of negotiations to enter the World Trade Organization, Prime Minister Vladimir Putin now says his country won't benefit from joining the WTO and might back away from promises it's made. Stephen Beard reports.Source: Marketplace | 25 Aug 2008 | 7:37 pm Could Fannie, Freddie avoid a bailout?Despite speculation that some sort of federal intervention was likely, nothing happened with Fannie Mae and Freddie Mac today. But the pair aren't out of the woods just yet. John Dimsdale reports.Source: Marketplace | 25 Aug 2008 | 7:36 pm Brokered CDs Pose Risks, Rewards (Ticked Off)Brokered CDs offer an edge, but be prepared to wait if the bank fails.Source: SmartMoney.com | 25 Aug 2008 | 6:17 pm Citi scraps committee headed by RubinCitigroup moved to simplify its cumbersome corporate structure by axing a board directorate headed by Robert Rubin and giving the former US Treasury Secretary the new title of "senior counselor"Source: FT.com - US homepage | 25 Aug 2008 | 6:01 pm Market Stats Point to Election Honeymoon (Tradecraft)The history of presidential elections favors stocks, before and after the vote.Source: SmartMoney.com | 25 Aug 2008 | 4:40 pm Credit Crisis, Risk Management Assessed One Year LaterSource: Bloomberg - All Podcasts | 25 Aug 2008 | 3:23 pm Daily Dose of Lehman ConjectureAnother day, another set of reports about Lehman Brothers' fate. Update: CNBC's Charlie Gasparino reports that K.K.R. has expressed a "high level of interest" in buying Lehman's asset management business Neuberger & Berman. Blackstone, however, has reportedly shown no interest. Stay tuned. Related LinksThe Swift Boat of Subprime The Fannie and Freddie Trigger When Bill Met Freddie Source: Portfolio.com: Top 5 | 25 Aug 2008 | 2:30 pm Cablevision Cut to `Sell' from `Buy' at CitigroupSource: Bloomberg - All Podcasts | 25 Aug 2008 | 1:41 pm
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The evidence is thin, but at least it is available. Freddie Mac (FRE) and Fannie Mae (FNM) could raise money on their own and without a government bail-out which would wipe out common stockholders and investors in some of the preferred in both companies. 
