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Markets are crazy - here's how to stay saneIt's ugly out there. As of late July, Standard & Poor's 500-stock index was down almost 13% for the preceding 12 months. With the housing market on the skids and energy prices soaring, the economy seems more vulnerable than it has in decades. At times like these, you may be sorely tempted to flee stocks before your 401(k) gets any droopier.Source: Business and financial news - CNNMoney.com | 1 Sep 2008 | 4:00 am Retail sales hit 25-year low as high food and fuel costs discourage shoppersBritish retail sales plunged to a 25-year low in August as soaring food and fuel prices and the housing slump discouraged shoppers, the Confederation of British Industry said.Source: Telegraph Business | 28 Aug 2008 | 12:40 pm Mutual insurer LV pays £150m for HighwayLV, the mutual formerly known as Liverpool Victoria, has agreed a £150m deal to buy Highway Insurance Group.Source: Telegraph Business | 28 Aug 2008 | 12:39 pm China expresses concern at Russia's actionThe Shanghai Cooperation Organisation (SCO), a grouping of China and Russia's Central Asian allies, expressed grave concern over tensions in Georgia and called for reconciliation and more talks, seemingly at odds with Russian president Dmitry Medvedev's claim of supportSource: FT.com - US homepage | 28 Aug 2008 | 11:52 am Sears Holdings profit falls shortATLANTA (Reuters) - Sears Holdings Corp posted quarterly profit that fell short of expectations on Thursday as the retailer cut prices to lure shoppers amid a U.S. housing slump that hurt appliance and tool sales.Source: Reuters: Business News | 28 Aug 2008 | 11:49 am Tiffany posts higher profitNEW YORK (Reuters) - U.S. jeweler Tiffany & Co posted a higher quarterly profit on Thursday, benefiting from strong international sales and solid tourist spending at its New York flagship store.Source: Reuters: Business News | 28 Aug 2008 | 11:47 am Hurricane fears raise oil pricesThe cost of crude rises for a fourth straight day on fears that Tropical Storm Gustav may disrupt oil production.Source: BBC News | Business | World Edition | 28 Aug 2008 | 11:46 am Futures slip as oil rises (Reuters)
Source: Yahoo! News: Business | 28 Aug 2008 | 11:43 am Futures slip as oil risesNEW YORK (Reuters) - Stock index futures fell on Thursday as the price of oil rose for a fourth day, overshadowing optimism among financial companies about the largest U.S. mortgage finance company Fannie Mae .Source: Reuters: Business News | 28 Aug 2008 | 11:42 am Indications: U.S. stock futures flattish; GDP on tapU.S. stock futures were flattish Thursday as oil and natural-gas futures continued to advance as fears about Tropical Storm Gustav remained and as markets awaited another estimate of the economy’s performance during the second quarter.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:41 am Sears' profit sinks 62%, tops estimatesSears Holdings Corp. said second-quarter profit fell 62% as the retailer continues to struggle to attract customers to its stores despite a high-stakes restructuring. The company also said that it expects that its sales and gross profit margins will continue to be pressured as it sees no near-term improvement in the economy.Source: Business and financial news - CNNMoney.com | 28 Aug 2008 | 11:36 am GM to invest $200 million in India engine plantMUMBAI (Reuters) - General Motors Corp said on Thursday it would invest more than $200 million in a powertrain plant in India, as the troubled U.S. carmaker aims to double its share of a fast-growing but increasingly competitive market.Source: Reuters: Business News | 28 Aug 2008 | 11:33 am Tiffany doubles 2Q profit on strong sales overseas (AP)AP - Jewelry retailer Tiffany says second-quarter profit doubled, beating Wall Street expectations as sales rose by double-digit percentages in Asia and Europe.Source: Yahoo! News: Business | 28 Aug 2008 | 11:33 am Fannie's capital better than market perceptions: Lehman(Reuters) - Fannie Mae's capital and reserves positions are better than market expectations, according to an analyst at Lehman Brothers, who also said the biggest U.S. mortgage finance company may not need any more externally raised capital.Source: Reuters: Business News | 28 Aug 2008 | 11:32 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:31 am Movers & Shakers: Thursday's biggest gaining and declining stocksStocks expected to move significantly in Thursday’s trading include Aladdin, Coldwater Creek, Diageo, Men’s Wearhouse, Sears, Siemens, Tiffany, Toyota and Zale.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:30 am Currencies: Storm watch keeps dollar under pressureA further rise by crude-oil futures on fears Tropical Storm Gustav could wreak havoc in the Gulf of Mexico keeps the U.S. dollar under pressure Thursday, analysts say.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:28 am Stocks set for weak startStock futures pointed to a mixed open on Thursday, as a better-than-expected earnings report from Sears lifted blue chips. Investors also await two economic reports set to be released before the markets open.Source: Business and financial news - CNNMoney.com | 28 Aug 2008 | 11:25 am Henderson to leave UK tax regimeUK investment fund Henderson Group says it is setting up a new Irish parent firm to cut its tax bill.Source: BBC News | Business | World Edition | 28 Aug 2008 | 11:24 am Fannie's capital better than market perceptions: Lehman (Reuters)
Source: Yahoo! News: Business | 28 Aug 2008 | 11:23 am French banks stung by further credit crisis lossesFrance's third- and fourth-largest banks reported slumping results from the credit crunch on Thursday, with Credit Agricole revealing a 94% profit drop and Natixis swinging to a loss of about $1.5 billion.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:23 am Credit Agricole tops France's crunch casualtiesCredit Agricole, the French bank, today became the country's biggest casualty of the credit crisis after writing down an additional €1.3 billion (£1 billion) which sent Calyon, its corporate and investment banking arm, plunging into a loss for the first half.Source: Latest Business News from Times Online | 28 Aug 2008 | 11:19 am Bad news for NutriSystemCan NutriSystem still produce fat profits if cautious consumers stop spending money to slim down? Last year we recommended the stock of NutriSystem, which was No. 1 on Fortune's 2007 list of 100 Fastest-Growing Companies. But the weakening economy and the pullback in personal spending have hurt the company, which sells diet programs based on its prepackaged meals. The stock is down 64% since we cited it a year ago. (Ouch!)Source: Business and financial news - CNNMoney.com | 28 Aug 2008 | 11:18 am Europe Markets: Banks help European shares off lows, autos lowerEuropean shares pulled back from early lows on Thursday as a strong performance from French banking giant Credit Agricole helped financials to move higher, although firmer oil prices continued to dampen sentiment towards autos.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:18 am Oil rigs gird for Gustav, prices riseAs the oil industry readied Thursday for Tropical Storm Gustav to crimp production in the Gulf of Mexico this weekend, prices rose in anticipation of a draw on crude supply.Source: Business and financial news - CNNMoney.com | 28 Aug 2008 | 11:16 am Oil prices rise on worries Gustav may strengthenOil prices rose above $119 a barrel today on fears that Tropical Storm Gustav could strengthen on its way toward crude and natural gas rigs in the Gulf of Mexico and refineries in the Gulf area.Source: L.A. Times - Business | 28 Aug 2008 | 11:15 am Hovis maker sees debt level riseHovis-maker Premier Foods has seen its profits fall and debt level rise in the first half of the year, on higher raw material prices.Source: BBC News | Business | World Edition | 28 Aug 2008 | 11:13 am Savills profits plunge as Europe and Asia-Pacific property markets start to feel the heatSavills, the British property adviser and estate agency, has seen profits at its global residential and commercial sales arm plummet by 88pc.Source: Telegraph Business | 28 Aug 2008 | 11:10 am Work harder, take home lessFor most of the past decade, the economy grew much stronger - but middle-class Americans had little to show for it.Source: Business and financial news - CNNMoney.com | 28 Aug 2008 | 11:05 am China's CNPC seals $3bn Iraq dealChina's state-oil firm CNPC has agreed a $3bn (£1.63bn) oil services contract for Iraq, the first by a non-US firm.Source: BBC News | Business | World Edition | 28 Aug 2008 | 11:02 am UCB plans to cut 17% of work force as part of revampingUCB says on Thursday that it would pare 2,000, or 17%, of its 12,000 jobs as part of its broader restructuring designed to focus operations and improve its competitive standing.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 11:01 am Apple bans comic bookSource: Business and financial news - CNNMoney.com | 28 Aug 2008 | 10:59 am Oil nears $120 as Gustav heads for GulfCrude oil and US natural gas prices continued to find support from concerns that tropical storm Gustav will disrupt oil and gas production in the Gulf of Mexico this weekendSource: FT.com - US homepage | 28 Aug 2008 | 10:58 am BOC Hong Kong's first-half profit off 5%; cautions on outlookBOC Hong Kong (Holdings) Ltd., the local unit of one of China's big four state lenders, reports a drop of 51% in first-half net income, owing to higher impairment charges growing out of soured investments on U.S. asset-backed securities.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 10:53 am Diageo expects 'challenges' aheadDiageo, owner of Guinness and Johnnie Walker, says it faces a "challenging" market after seeing little change in annual profits.Source: BBC News | Business | World Edition | 28 Aug 2008 | 10:51 am Aer Lingus swings to first-half loss, predicts loss for the yearIrish-flag carrier Aer Lingus Group on Thursday warns that it will need to further slash costs to ensure its long-term survival as it posts a loss for the first half of the year and predicts it will end 2008 in the red.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 10:46 am Retail sales slump surpasses 1990s recessionHigh street sales plunged to the lowest level in a quarter of century in August as wet weather and increased pressure on consumers' wallets deterred shoppers from splashing out.Source: Latest Business News from Times Online | 28 Aug 2008 | 10:38 am Asia Markets: Hong Kong shares stumble in mixed Asia; Karachi advancesAsia trades mixed, with the Hong Kong market declining while Karachi stabilizes following intervention by the local securities regulator.Source: MarketWatch.com - Top Stories | 28 Aug 2008 | 10:33 am Toyota (TM) Crashes, Again
The reality of the situation is that Toyota may never sell 10 million cars a year again. Ever. The hopes of the auto industry are based on the idea that sales will rebound sometime in 2009 or 2010. Part of the foundation of the reasoning is that more people in China, India, and Latin America will buy vehicles. That may be true. It is unlikely to offset the trend of fewer and fewer sales in Europe, North America, and Japan. For any improvement in the regions which are suffering now, gas prices would have to drop dramatically. That probably means regular fuel would have to move back in the direction of $2 a gallon. Given the trend in oil prices, that is very unlikely. Car companies also hope they can pick up sales from a new generation of hybrids and electric cars. Those models may be introduced too late to catch the people who are moving to public transportation, car pooling, and telecommuting. Once the new habits are in place, they will be hard to change. The auto industry shot itself in the foot by failing to see higher oil prices coming. The wound may never heal entirely. Customers have gone elsewhere because they needed to save money. Some of them will stay away. Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 10:32 am Diageo fears drinkers' spirits will dampenDiageo, the world's largest producer of alcoholic drinks, today lowered its growth forecast as slowing economies around the world hamper its overall results despite strong growth in sales of its top brands.Source: Latest Business News from Times Online | 28 Aug 2008 | 10:24 am When Will Starbucks CEO Howard Schultz Take $1 A Year?
Since Starbucks shares have dropped from almost $40 to $16 in less than two years, the gesture seems like a fair one. It may not be of any comfort to the 12,000 people the coffee company fired earlier this summer, but they were sacrificed for better profit margins. It would be hard to find a better reason. The trouble at Starbucks sits on the shoulders of Howard Schults, the founder of the company and current CEO. He left the top job several years ago and installed himself as chairman, but he knew what went on at the company every step of the way. He ever sent a memorable memo to his top management two years ago predicting that there was trouble ahead. Aside from committing his thoughts to paper, he did nothing. When things got much worse at the company, he returned as CEO. Aside from letting people go, his primary accomplishments are setting aside a day to "re-educate" store workers and adding a new line of cheap and watery coffee called Pike Peak Roast. Schultz made a base salary of almost $1.2 million last year. His total compensation was over $10 million, and he owns over 32 million shares in Starbucks. Given the damage done on his watch and the fact that his net worth is in the hundreds of millions of dollars he could at least hand investors a bone and cut his salary to $1. Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 10:20 am Oil rises towards $120 as Gustav loomsLONDON (Reuters) - Oil rose towards $120 a barrel on Thursday, its fourth day of gains, boosted by the threat of damage to U.S. oil installations from Tropical Storm Gustav.Source: Reuters: Business News | 28 Aug 2008 | 10:16 am Amgen to discontinue discounts on anemia drug: report (Reuters)Reuters - Amgen Inc is halting some pricing practices that critics say were contributing to overuse of its flagship anemia drug Aranesp at a time of mounting concerns about the product's safety, the New York Times said.Source: Yahoo! News: Business | 28 Aug 2008 | 10:14 am Amgen to discontinue discounts on anemia drug: report(Reuters) - Amgen Inc is halting some pricing practices that critics say were contributing to overuse of its flagship anemia drug Aranesp at a time of mounting concerns about the product's safety, the New York Times said.Source: Reuters: Business News | 28 Aug 2008 | 10:14 am Toyota lowers 2009 global sales targetToyota lowered its global sales target for 2009 by 700,000 vehicles to 9.7 million today, showing that even one of the world's most durable automakers is being hurt by rising material costs, a slowing U.S. market and soaring gas prices.Source: L.A. Times - Business | 28 Aug 2008 | 10:13 am Pendragon profits tumble as new car sale slumpPendragon, the car dealership, today slashed its dividend after revealing a sudden freefall in the sale and price of new and used vehicles during June, dragging pre-tax profit for the first six months of the year down by 37 per cent.Source: Latest Business News from Times Online | 28 Aug 2008 | 10:12 am Toyota lowers 2009 global sales targetSource: Business and financial news - CNNMoney.com | 28 Aug 2008 | 10:05 am Apple (AAPL) iTunes And The Sherman Antitrust Act
Apple's iTunes is sort of the digital Standard Oil of the 21st Century. Its share of the music download business is breathtaking. The Wall Street Journal writes, "The store sells 90% or more of digital downloads in the U.S., according to people in the music industry." Several fairly big rock groups are boycotting iTunes. They say that the service's program to sell songs for $.99 undercuts the marketing of their albums. People would rather buy songs one-by-one than shell out $10 or $15 to buy a CD. The whole Apple model makes it more difficult for record labels and artists to make a buck. The music industry's margins on iTunes are not as good as they are on CDs. A simpleton's view of the trouble might be that Apple's stock is up over 150% in last last two years and Warner Music Group's (WMG) is off over 60%. The fight against iTunes is not one that the artists or labels can win. They may be able to get one or two very successful albums sold without Apple. When sales dip, they will come right back. Long term iTunes is the only option for wide distribution of music. Apple has sold over five billion downloads and there are over 150 million iPods floating around somewhere. The labels and artists are likely to have just one way out. The argument that iTunes is a monopoly which can fix both pricing and distribution has become compelling as online music stores set up by the competition have been pole-axed by Jobs & Company. iTunes has become the Microsoft (MSFT) Windows of the digital media age. Most industries which have been beaten down end up in court suing those who have bested them. The music people are no exception. Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 10:04 am Europe falters on oil stock selloffEuropean stocks slid on Thursday as profit-taking drove down oil shares, despite a rally in the banking sector led by Crdit Agricole on hopes that it has now drawn a line under its losses. The French bank...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 10:04 am Executive shake-up at Fannie MaeThe US mortgage giant announces a shake-up of top executives in an attempt to restore confidence.Source: BBC News | Business | World Edition | 28 Aug 2008 | 10:02 am Sears Holdings Reports Second Quarter ResultsHOFFMAN ESTATES, Ill., Aug. 28 /PRNewswire-FirstCall/ -- Sears Holdings Corporation ("Holdings," "we," "us," "our" or the...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 10:00 am Good Life China (GLCC) To Acquire An Agriculture CompanyBEIJING, Aug. 28 /PRNewswire-FirstCall/ - Good Life China Corporation (Pink Sheets GLCC) href="http://www.goodlifechina.com">www.goodlifechina.com is pleased to announce...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 10:00 am Financials help steady FTSEFinancial stocks helped London equities to small overall gains on Thursday, with investors once more betting that the sector looked undervalued. The FTSE 100 rose 6 points to 5,533.7, with mining stocks...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 9:54 am The economic growth mirageDespite all the talk about the U.S. economy falling on hard times this year, experts are predicting that the economy grew at a more solid pace during the second quarter.Source: Business and financial news - CNNMoney.com | 28 Aug 2008 | 9:53 am Toyota cuts sales forecast as demand sputters (Reuters)
Source: Yahoo! News: Business | 28 Aug 2008 | 9:51 am Toyota cuts sales forecast as demand sputtersTOKYO (Reuters) - Toyota Motor Corp cut its 2009 vehicle sales forecast by nearly 7 percent as high fuel prices hammer demand for large cars and pickup trucks, and said it will speed up the rollout of hybrid and electric cars as their popularity grows.Source: Reuters: Business News | 28 Aug 2008 | 9:50 am Premier looks for rise from Hovis relaunchPremier Foods is banking on its relaunch of Hovis bread to bring it healthy profits in the second half of the year.Source: Latest Business News from Times Online | 28 Aug 2008 | 9:45 am Hong Kong leads Asian markets lowerHong Kong was the worst performer of the major Asia-Pacific bourses on Thursday, following disappointing earnings from Esprit and PetroChina.Apparel company Esprit slumped 18 per cent to HK$66.00, the...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 9:40 am Aer Lingus says it suffers first-half lossIrish airline Aer Lingus said on Thursday that it faced a first-half net loss of 20.6 million euros (30.4 million dollars) because of the soaring cost of jet fuel and slowing global growth.Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 9:37 am Memo To The SEC: There Is Nothing Wrong With GAAP
The thought behind the change is that investors would be better able to compare US companies with ones based outside the fifty states. The action to adopt standards used for international company accounting is a shift in the wrong direction, According to the Forbes list of the 2000 largest public companies in the world, over 500 are based in the US. The Wall Street Journal writes that "The U.S. accounting system, which is ingrained in textbooks, business schools and company treasuries, is based on detailed rules, while the international system expects companies to follow broad principles." It is these sorts of detail that make GAAP the highest standard in the accounting world and the IFRS standards more prone to fungibility. A change would put US investors at a disadvantage which would last for years. Virtually all investment analysis by everyone from hedge funds to Wall St. analysts to individual investors is based on GAAP. The standards are examined by experts and revised as necessary. The rigor of their rules speaks against tossing them on the scrap heap. If the world wants one set of accounting standards, let them come to GAAP. It is the mountain and Muhammad can do a little traveling. Douglas A. McIntyre Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 9:30 am U.S., Europe and Japan planned dollar rescue: reportTOKYO (Reuters) - The United States, Europe and Japan planned joint intervention to rescue the dollar when it was plunging in March at the time U.S. investment bank Bear Stearns collapsed,...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 9:24 am Agricole, Natixis earnings plunge on market turmoilPARIS (Reuters) - French banks showed the scars of the financial crisis on Thursday, with heavy asset writedowns stripping Credit Agricole of all but a sliver of profit and plunging Natixis to a billion euro loss.Source: Reuters: Business News | 28 Aug 2008 | 9:18 am Profits plunge at Credit AgricoleCredit Agricole reports a 94% fall in second-quarter profits after the bank is hit by a loss at its investment banking division.Source: BBC News | Business | World Edition | 28 Aug 2008 | 9:17 am Henderson chief quits as company plans to leave the UKUK asset manager Henderson Group confirmed its intention to leave Britain for tax reasons as the company posted at 53pc fall in first-half profits and said chief executive Roger Yates will step down.Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 9:15 am Henderson chief quits as company plans to leave the UKUK asset manager Henderson Group confirmed its intention to leave Britain for tax reasons as the company posted at 53pc fall in first-half profits and said chief executive Roger Yates will step down.Source: Telegraph Business | 28 Aug 2008 | 9:15 am Agricole, Natixis earnings plunge on market turmoilPARIS (Reuters) - French banks showed the scars of the financial crisis on Thursday, with heavy asset writedowns stripping Credit Agricole of all but a sliver of profit and plunging...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 9:13 am How Did Imbeciles Come To Run Fannie Mae (FNM)?
Fannie Mae (FNM) is in the middle of its own trouble, but it has had its problems for some time. Against the conventional wisdom, it dumped some of its top people. FNM CEO Daniel Mudd pushed out his chief business officer, his CFO, and his chief risk officer. That is a lot of people to swap as the company is just coming to grips with its problems. The replacements will probably take a little while to get the hang of their new jobs. It is hard to see how that is good at a firm where there has to be a premium on quick decisions to solve tremendous trouble. The question for Mudd is when did he know some of his top people were inadequate. He would have been much better off to hire a strong senior team when the firm was at the beginning of its disaster. Why couldn't Mudd figure out that his management group was not up to the task until so late in the evolution of Fannie Mae's difficulties? All of the people that Mudd moved out had been at the company for at least two years. It is amazing that it took so long to ferret out that they could not handle themselves during dark hours. When did they go from being competent to being incompetent? And, what of Mudd? Is his ability to make judgments so flawed? The personnel changes say more about Mudd's skills than those of the departed. If his lieutenants were such buffoons, how did they last so long? Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 9:00 am Day4 Energy Offers Turnkey Solution to Solar Power InvestorsProject Financing Partnership to Fuel Growth in Deployment of Leading Solar Power Generation Products BURNABY, BC - Aug. 28 /PRNewswire-FirstCall/ -...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 9:00 am Pinewood studios enjoys sterling's slideSterling's slide against the dollar and tax breaks for the film industry have helped Pinewood Shepperton studios attract more Hollywood directors to Britain.Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 8:55 am Pinewood studios enjoys sterling's slideSterling's slide against the dollar and tax breaks for the film industry have helped Pinewood Shepperton studios attract more Hollywood directors to Britain.Source: Telegraph Business | 28 Aug 2008 | 8:55 am US backs international standardsUS firms could have to use international accounting standards by 2014, under a proposal put forward by the SEC.Source: BBC News | Business | World Edition | 28 Aug 2008 | 8:51 am Diageo cuts growth targetDiageo on Thursday lowered its guidance for the year in the face of rising costs and adverse conditions in the wider economy as the global drinks group reported flat annual pre-tax profits. The owner...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 8:47 am FTSE falls as mining deal hopes fadeLondon equities slipped back on Thursday, with miners losing ground as hopes for consolidation in the sector moved back.The FTSE 100 fell 0.5 per cent or 15 points to 5,503.5. The FTSE 250 rose 0.3 per...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 8:45 am GM to invest $200 million in India engine plantMUMBAI (Reuters) - General Motors Corp said on Thursday it would invest more than $200 million in a powertrain plant in India, as the troubled U.S. carmaker aims to double its share of a...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 8:39 am China admits mismanaged fundsChina's government departments misused, embezzled or mismanaged more than $6.7bn in 2007, the state auditor says.Source: BBC News | Business | World Edition | 28 Aug 2008 | 8:33 am AMEC - CEO Interviewed on Record PerformanceLONDON, August 28 /PRNewswire-FirstCall/ -- AMEC today reported record trading performance with continuing strength in energy end markets. Adjusted pre-tax profits were...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 8:31 am Bloomberg PMI Signals Further Decline in Euro Retail SalesUncertain Economic Outlook and Reduced Purchasing Power Cited NEW YORK, Aug. 28 /PRNewswire/ -- The latest Bloomberg Euro-Zone Retail Purchasing Managers' Index...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 8:10 am Nepalese sue US company over IraqA Nepalese man and relatives of 12 others killed in Iraq four years ago sue American firm KBR on charges of human trafficking.Source: BBC News | Business | World Edition | 28 Aug 2008 | 8:05 am Toyota slashes 2009 sales forecastTOKYO, Aug 28 - Toyota Motor Corp, the world's most profitable carmaker, cut its 2009 vehicle sales forecast by nearly 7 per cent due to a severe downturn in Western markets driven by high fuel prices...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 8:01 am Belgian drugmaker UCB to cut 2,000 jobs in restructuringBelgian pharmaceuticals group UCB plans to cut its headcount by 2,000 -- 17 percent of its worldwide staff -- as part of a restructuring, the company said Thursday. Some...Source: Infocious RSS raw feed - channel BNewsBusiness | 28 Aug 2008 | 7:51 am Kazakhmys profits drop despite commodity boomRoyal Dutch Shell is planning a full evacuation of workers on its oil and natural-gas platforms in the Gulf of Mexico after predictions that Tropical Storm Gustav will strengthen into a hurricane as it...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 7:50 am Kazakhmys profits drop despite commodity boomRoyal Dutch Shell is planning a full evacuation of workers on its oil and natural-gas platforms in the Gulf of Mexico after predictions that Tropical Storm Gustav will strengthen into a hurricane as it crosses the area.Source: Telegraph Business | 28 Aug 2008 | 7:50 am Media Digests 8/28/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that Fannie Mae (FNM) changed several of its top executives. Reuters writes that Starbucks (SBUX) management will receive no raises next year. Reuters writes that the CFTC will look into reports on the trading of oil futures. Reuters writes that Caterpillar (CAT) expects strong demand in China to continue. Reuters writes that US consumers may pass on convenience and organic foods. The Wall Street Journal reports that mobile phone sales are slowing. The Wall Street Journal reports that more artists are moving away from Apple (AAPL) iTunes because its format hurts album sales. The Wall Street Journal reports the Big Three sales are beginning to badly damage dealer finances. The Wall Street Journal reports that the SEC would like to change accounting rules by 2014 moving to international standards. The Wall Street Journal reports that spending on servers is slowing. The Wall Street Journal reports the Dell's (DELL) earnings may be the last strong results from a tech company for some time. The New York Times writes that Amgen (AMGN) will offer discounts on its anemia drug. The FT reports that the new Microsoft (MSFT) browser may impact some of Google's (GOOG) targeted advertising features. Bloomberg reports that earnings at Credit Agricole dropped 94% on write-downs. Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 7:46 am Crdit Agricole profits plungePARIS, Aug 28 Crdit Agricole, France's biggest retail bank, reported a 94 per cent fall in second quarter profit on Thursday with earnings hit by a widely expected loss at its Calyon investment banking...Source: Infocious RSS raw feed - channel BNPaperBusiness | 28 Aug 2008 | 7:33 am Asia Markets 8/28/2008 (LFC)(PTR)
The Nikkei rose .1% to 12,678. Asahi Breweries rose 2.2% to 2010. UNY rose 4% to 1172. The Hang Seng fell 2.2% to 20,988. China Life (LFC) fell 1% to 29.55. PetroChina (PTR) fell 3.3% to 9.96. The Shanghai Composite rose .3% to 2,350 Data from Reuters Douglas A. McIntyre Source: 24/7 Wall St. | 28 Aug 2008 | 7:22 am Henderson boss Roger Yates steps down replaced by Andrew Formica as profits slideHenderson took investors by surprise today as it revealed that Roger Yates, its chief executive for the past nine years, would be stepping down to take a sabbatical for the next year.Source: Latest Business News from Times Online | 28 Aug 2008 | 7:16 am California insurance commissioner backs pay-as-you-drive policiesCommissioner Steve Poizner releases proposed regulations. The plan is considered to be more accurate, and it would give a financial incentive to California motorists to drive less.California drivers could be offered a new -- and often cheaper -- kind of car insurance next year under a voluntary pay-as-you-drive plan proposed Wednesday by Insurance Commissioner Steve Poizner. Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am Mexico plans huge Baja port for U.S. tradePresident Calderon will open bidding for infrastructure contracts Thursday. The project is likely to transform the village of Punta Colonet.Mexico's government is setting sail with the largest infrastructure project in the nation's history, a $4-billion seaport that it hopes will one day rival those of Los Angeles and Long Beach. Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am Producer Mark Burnett files labor complaint against Conrad RiggsThe 'Survivor' producer alleges that longtime associate Riggs, who is suing him, violated the Talent Agencies Act.Reality TV kingpin Mark Burnett is now trying to get the state labor commissioner to weigh in on his feud with longtime associate Conrad Riggs. Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am ConocoPhillips to sell the rest of its filling stations to PetroSun FuelThe deal allows the big oil firm to focus on its other operations.Houston-based ConocoPhillips became the latest big oil company to get out of the filling station business, agreeing Wednesday to sell its last 600 U.S. gasoline stations to PetroSun Fuel of Seattle. Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am Durable-goods surprise doesn't spell recessionOrders for big-ticket items jumped 1.3% in July, a strong signal for manufacturing. But the outlook for exports is in question.What happened to the recession? Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am Study outcome won't sway Genentech on use of Avastin as eye drugGenentech won't seek approval of Avastin to treat macular degeneration, even though it's much cheaper than Lucentis.What does a company do when there's anecdotal evidence that two of its drugs are equally effective in treating a leading cause of blindness in the elderly, one costing patients $60 per treatment and the other $2,000? Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am Surf-wear giant Quiksilver to sell Rossignol ski divisionChartreuse & Mont Blanc agrees to buy the flagging winter sports gear maker for $147 million, less than half what Quiksilver had paid for it in 2005.Orange County surf-wear giant Quiksilver Inc. said Wednesday that it had reached an agreement to sell Rossignol, its flagging winter sports equipment division, in a deal valued at $147 million. Source: L.A. Times - Business | 28 Aug 2008 | 7:00 am Nationwide says house prices falling fastest in 18 yearsPrime properties in the heart of rural England have finally been drawn into Britain's sliding housing market, it emerged today, as the Nationwide building society reported that prices are falling at their fastest annual rate in almost 18 years.Source: Latest Business News from Times Online | 28 Aug 2008 | 6:33 am Currency: NZ dollar closes slightly firmerThe New Zealand dollar pushed higher against the US dollar today and was little changed on many other crosses. The rise came as the US dollar slipped from its recent highs and as analysts continued to cite the recovery in confidence...Source: New Zealand Herald - Business | 28 Aug 2008 | 5:48 am Starbucks top brass to receive no raise next yearNEW YORK (Reuters) - Top executives at Starbucks Corp including Chairman and Chief Executive Howard Schultz will not be getting raises anytime soon, after the coffee chain's first-ever quarterly loss as a public company.Source: Reuters: Business News | 28 Aug 2008 | 5:24 am Big loss for ProvencoCadmus as sales slumpProvencoCadmus has reported a loss of $36.3 million after restructuring costs and the write-off of intellectual property assets and tax losses. The company said the loss was disappointing. It compared with a loss of $3.1m last...Source: New Zealand Herald - Business | 28 Aug 2008 | 4:00 am Obama nominated as Democrats uniteBarack Obama formally secured the Democratic nomination for president as former President Bill Clinton declared him "ready" to become America's commander in chief, and his running-mate, Joe Biden, praised his foreign policy judgmentSource: FT.com - US homepage | 28 Aug 2008 | 3:38 am Economic storm worst since '87 crash says CullenNew Zealand is facing the most complex and challenging economic forces since the global stockmarket crash of 1987, Finance Minister Michael Cullen said today. In notes for a speech to a superannuation fund conference in Auckland,...Source: New Zealand Herald - Business | 28 Aug 2008 | 2:30 am Lyttelton port profits up on record volumesLyttelton Port of Christchurch has increased profits and handled record freight volumes in the year to June 30. At a time when hub ports are supposed to be growing to the detriment of others, a range of New Zealand ports are posting...Source: New Zealand Herald - Business | 28 Aug 2008 | 2:00 am Starbucks top brass to receive no raise next year (Reuters)
Source: Yahoo! News: Business | 28 Aug 2008 | 1:33 am After The Close - WednesdayJO-ANN STORES, a fabrics and crafts chain, posted a Q2 loss of 47 cents, beating views by 19 cents. Sales gained 4% to $403.0 mil. It surged...Source: Investor's Business Daily: BUSINESS | 28 Aug 2008 | 12:23 am Business Briefs - WednesdayDollar Tree beats, guides lower. The discount retailer posted Q2 EPS that rose 27% to 42 cents, beating views by a penny. But it said profit...Source: Investor's Business Daily: BUSINESS | 28 Aug 2008 | 12:23 am In Brief - WednesdayDell (DELL), the computer maker, introduced its first PCs designed for emerging markets, unveiling 2 laptops and 2 desktops. Prices start at $440....Source: Investor's Business Daily: BUSINESS | 28 Aug 2008 | 12:23 am Trends & Innovations - WednesdayStudents prepared for shootingsSource: Investor's Business Daily: BUSINESS | 28 Aug 2008 | 12:23 am New Recovery Centers Drive Growth For Nursing Home OperatorIt's not just how many beds are filled at a nursing home that's important. It's who fills them -- or more precisely, how they're paying -- that...Source: Investor's Business Daily: BUSINESS | 28 Aug 2008 | 12:23 am Bond fund titan seeks $5bn for mortgage-backed debtsPimco, the manager of the world's largest bond fund, is looking to raise a $5bn (£2.7bn) fund to buy up tranches of depressed mortgage-backed debt.Source: Telegraph Business | 28 Aug 2008 | 12:01 am Asia Pacific property market next to be hit, warns SavillsAsia Pacific property market next to be hit, warns SavillsSource: Telegraph Business | 28 Aug 2008 | 12:01 am City news (Mon-Fri)City news (Mon-Fri)Source: Telegraph Business | 28 Aug 2008 | 12:01 am Temasek backs Merrill with extra $3.4bnTemasek, the Singaporean sovereign wealth fund, has declared its support for beleaguered Merrill Lynch by raising its stake in the investment bank.Source: Telegraph Business | 28 Aug 2008 | 12:01 am AMP NZ profits up 20pc - KiwiSaver cash flowing inAMP's New Zealand financial services business has notched up a 20 per cent increase in profit and spoken of both challenges and opportunities from government changes to the industry. Operating earnings rose 20 per cent to $32.1...Source: New Zealand Herald - Business | 28 Aug 2008 | 12:00 am Blog: Dollar's new status: strongman of global currenciesSource: L.A. Times - Business | 27 Aug 2008 | 11:32 pm Fannie Mae shakes up top ranksFannie Mae, the US government-sponsored mortgage financier, unveiled a management restructuring that put new executives in charge of its plan to improve capital management and cut credit lossesSource: FT.com - US homepage | 27 Aug 2008 | 11:27 pm Property slump impacts Metlifecare resultRetirement village operator Metlifecare has posted a loss of $53 million for the year to the end of June, saying the result was due to revaluations and non-cash impacts of new accounting rules. The comparable figure from a year...Source: New Zealand Herald - Business | 27 Aug 2008 | 11:15 pm Britons face Nicolas Sarkozy tax rise to fund French welfare planPresident Sarkozy will face accusations that he is turning his fiscal policy on its head today when he announces an increase in tax on investment revenue to finance a back-to-work programme. The 1 per cent rise on share, property rental and other investment income is designed to help to pay for the French President’s promise to end the so-called welfare trap, in which it can be unprofitable for jobless people to return to employment. The tax will be wide-ranging and could affect thousands of Britons who let their properties in France in the holiday season. Critics argue that the move signals the death of Mr Sarkozy’s tax-cutting crusade as he struggles to implement Blairite electoral pledges while trying to limit the €50 billion (£40 billion) French budget deficit. The tax increase, which officials hope will generate about €1.5 billion a year, will bring the total tax rate on investment revenue to 30 per cent. Opponents say that it flies in the face of Mr Sarkozy’s attempts to encourage wealth creation and to tempt back French tax exiles from Britain, Switzerland, Belgium and elsewhere. Alain Lambert, a prominent senator and a member of Mr Sarkozy’s centre-right coalition, said: “I’m going to need a few minutes to understand why we’re raising tax on investment revenue when we brought down inheritance tax a year ago.” Mr Lambert said that it would have been better to finance the back-to-work benefit through cuts in welfare spending. Dominique Paillé, spokesman for Mr Sarkozy’s Union for a Popular Movement, said, however, that the new benefit “is a good means for those in difficulty and in a precarious situation to find stable and lasting work again and, therefore, it deserves solidarity from everyone”. The Revenue de Solidarité Active is designed to ensure that the income of welfare claimants rises when they find employment. At present some people are better off on benefits than in a low-paid job – a disincentive to get off the dole, many economists say. Under the new scheme, claimants will be able to keep benefits equivalent to 60 per cent of their salary after they start work. An average couple on low wages with one child would be €224 a month better off. Mr Sarkozy’s scheme is likely to apply to up to four million people and cost about €8.5 billion a year. The Government will find €7 billion a year by abolishing some existing benefits. The French economy contracted by 0.3 per cent in the second quarter and jobless levels are expected to rise from 1.9 million over the next 12 months.Source: Latest Business News from Times Online | 27 Aug 2008 | 11:00 pm Airlines mock decision to award BAA Olympics roleBAA has been appointed as a security adviser to the organisers of the 2012 Olympic Games in a move that has been ridiculed by airlines, which have criticised the airports operator for long queues and poor service.Source: Latest Business News from Times Online | 27 Aug 2008 | 11:00 pm Deepening recession may throw Britain into full-year GDP fallBritain's economy is set to shrink over the next year as a deepening recession inflicts the first full-year fall in national income since 1991, a leading forecasting group predicts today.Source: Latest Business News from Times Online | 27 Aug 2008 | 11:00 pm Finance and accounting skills crisis easingThe lack of skilled accountants and finance staff is not as severe as it was last year, according to an international survey of business managers. The skills shortage is easing in those professions, with the proportion of employers...Source: New Zealand Herald - Business | 27 Aug 2008 | 11:00 pm Hellaby says profits are back thanks to better focusInvestment company Hellaby Holdings has reported a $4.7 million annual profit and said it is now focused on its automotive, equipment, packaging and footwear investments. The profit compared with a deficit of $9.8m last year. The...Source: New Zealand Herald - Business | 27 Aug 2008 | 10:45 pm Option Investments' Julian Sees Focus on Treasury, Gold ETFsSource: Bloomberg - All Podcasts | 27 Aug 2008 | 10:41 pm NZ Shares: Small lift in early tradingThe New Zealand sharemarket moved slightly higher in early trading today. Top stock Telecom was unchanged at 324 but Fletcher Building reversed most of yesterday's 5c loss with a 4c gain early to 731. Guinness Peat Group eased...Source: New Zealand Herald - Business | 27 Aug 2008 | 10:30 pm Port of Tauranga profits up - 25pc hike in container trafficPort of Tauranga has shrugged off global financial troubles by increasing trade and posting a record annual profit of more than $40 million - double the profits of its Auckland rival. The port company today announced a net profit...Source: New Zealand Herald - Business | 27 Aug 2008 | 10:30 pm VIX Index of U.S. Stock Option Prices Retreats 3.5 % to 19.76Source: Bloomberg - All Podcasts | 27 Aug 2008 | 10:14 pm How your 401(k) stacks upIf your 401(k) is really full of losers, then you might consider dumping it for an IRA. But do a status check first.Source: Business and financial news - CNNMoney.com | 27 Aug 2008 | 10:02 pm Axel Merk Says Fund Buying Canadian Dollar, Swiss FrancSource: Bloomberg - All Podcasts | 27 Aug 2008 | 10:00 pm Stock Charts Are Top Tool for Investors (Tradecraft)Analyzing a stock's price action is the No. 1 way to evaluate an investment.Source: SmartMoney.com | 27 Aug 2008 | 9:54 pm 8 Cheap Stocks With Price Momentum (Stock Screen)We found eight modestly priced stocks that could pay off quickly.Source: SmartMoney.com | 27 Aug 2008 | 9:44 pm 8 Stocks With High Returns on Invested Capital (Stock Screen)We found eight stocks that get high marks for their returns on invested capital.Source: SmartMoney.com | 27 Aug 2008 | 9:28 pm 8 Stocks With Earnings Momentum (Stock Screen)Eight stocks with earnings momentum that shows no sign of slowing down.Source: SmartMoney.com | 27 Aug 2008 | 9:28 pm US stocks higher on economic dataUS stocks rose as investors took heart from better-than-expected data on durable goods orders, in spite of a rise in oil prices as a result of concerns that tropical storm Gustav could disrupt suppliesSource: FT.com - US homepage | 27 Aug 2008 | 9:16 pm Time for low-income affirmative actionCommentator Robert Reich says Democrats have acknowledged the obstacles racial minorities face in hiring and education for a long time. Now, he says, they ought to look at the economically disadvantaged, too.Source: Marketplace | 27 Aug 2008 | 9:04 pm Latest economic indicator -- the shrinkSometimes you find economic truths in offbeat places. Marketplace's Jeremy Hobson visited an anxiety clinic in Washington, D.C., for a measurement of how consumers are coping.Source: Marketplace | 27 Aug 2008 | 9:04 pm A trial by fire for veggie burger makerWhen Marie Osmunson received a huge order for her vegetarian burgers from one of the Northwest's most popular fast-food chains, she had a problem: How to deal with success. Mitchell Hartman reports.Source: Marketplace | 27 Aug 2008 | 9:04 pm LPGA to non-English speakers: Shh!The Ladies Professional Golf Association is telling its players, many of whom are Korean, they'll be suspended if they can't pass an oral English exam next year. Why? Sponsors speak a language everyone understands. It's called money.Source: Marketplace | 27 Aug 2008 | 9:04 pm Germany facing economic woes, tooGermans' confidence in their economy -- Europe's largest -- has plummeted with second-quarter performance actually shrinking. What could be the impact on Europe and the U.S.? Stephen Beard reports.Source: Marketplace | 27 Aug 2008 | 9:04 pm Gulf Coast waits for Gustav's next moveThe latest forecast calls for Tropical Storm Gustav to make landfall on the Gulf Coast Monday morning. Kai Ryssdal talks with oil worker Buddy Bollfrass about how oil companies are getting ready.Source: Marketplace | 27 Aug 2008 | 9:03 pm Private firms eyeing public projectsCities and states need an estimated $1.5 trillion to fix crumbling bridges, roads and utility plants. Taxpayers traditionally have paid for those kinds of projects. But governments are heading for Wall Street to get the job done. John Dimsdale reports.Source: Marketplace | 27 Aug 2008 | 9:03 pm Fannie's FatalitiesWe knew this time would come eventually. Time for the bodies to start piling up.Fannie Mae announced a management restructuring that it says will help it work through its capital problems but in reality will likely solve none of them. The troubled mortgage lender will replace its chief financial officer, its chief business officer, and its chief risk officer. Chief executive Daniel Mudd will remain at the helm. Shares of Fannie Mae, which have rallied during the past three trading sessions, fell after the announcement was made. "After setting forth our capital and credit plan August 8, we are now putting a senior management structure in place to drive this plan across the company," Mudd said in a statement. "This team will be responsible for meeting the dual objectives of conserving capital and controlling credit losses while Fannie Mae continues to provide crucial liquidity to the U.S. housing and mortgage markets." Current chief business officer Robert Levin will be replaced by Peter Niculescu, head of Fannie's capital markets. Levin announced his retirement. C.F.O. Stephen Swad will be replaced by controller David Hisey. Swad will pursue opportunities in private equity. Chief risk officer Enrico Dallavecchia will be replaced by senior credit executive Michael Shaw. Dallavecchia will leave for other opportunities in finance. Now that we have the press release formalities taken care of, what will this shake-up mean for Fannie Mae? Bringing in new blood to explore new ways to boost capital can't hurt, but it's not clear that it will solve the government-sponsored entity's structural problems. Despite Treasury Secretary Hank Paulson's efforts to try and boost confidence in Fannie Mae and Freddie Mac with a government bailout plan, it hasn't worked. Instead, it's just left investors with more apprehension about the government's true intent to solve the crisis at hand. When and how the bailout will happen have become questions asked more often than whether or not Fannie and Freddie will survive. Moreover, what about Mudd? Last week, the Washington Post reported that Fannie's chief executive was aggressively expanding its subprime lending business even as the market was on the brink of collapse. Meanwhile, one of his own subordinates warned him against it. Shouldn't Mudd be held accountable as well? Probably. But the truth is, it's going to take more than new management to solve the problems at hand. Related Links Cue the Optimists When Bill Met Freddie Angelo's Fannie Pack Source: Portfolio.com: Top 5 | 27 Aug 2008 | 9:00 pm Home Builder ETFs Enjoy Rare Uptick (Daily ETF Wrap-Up)Investors bid up home builder ETFs on the back of good economic data.Source: SmartMoney.com | 27 Aug 2008 | 8:42 pm Obama and McCain Differ Sharply on Economic Policy (SmartMoney Magazine)The presidential contest shows unusually sharp differences on economic policy.Source: SmartMoney.com | 27 Aug 2008 | 8:35 pm New gadgets? Everybody in the pool!Kai Ryssdal jumps into the pool with Kevin Pereira of G4's "Attack of the Show" to try out some of the latest technology that doesn't have any trouble getting wet.Source: Marketplace | 27 Aug 2008 | 8:13 pm Orders Data Lift StocksThe major indexes advanced on an unexpected rise in demand for durable goods. Energy stocks rose, too.Source: SmartMoney.com | 27 Aug 2008 | 8:10 pm Brusuelas Sees `Tension' in Fed on Inflation, PolicySource: Bloomberg - All Podcasts | 27 Aug 2008 | 8:08 pm China Funds Are Down, But Don't Sell (Fund Insight)After raking in gold the last two years, China funds are now trailing the pack.Source: SmartMoney.com | 27 Aug 2008 | 8:02 pm Latest Microsoft browser challenges GoogleMicrosoft released a web browser that includes a feature that could affect the advertising model of internet rivals such as GoogleSource: FT.com - US homepage | 27 Aug 2008 | 8:00 pm The 52-Week Low Club 8/27/2008 (F)(NEXM)(CEGE)(AMLN)
Nexmed (NEXM) Drug trial problems. Falls to $.23 from a 52-week high of $.1.87. Cell Genesys (CEGE) Drug trial problems. Plunges to $.69 from 52-week high of $4.67. Amylin (AMLN) Deaths due to one of the company's drugs. Dips to $19.92 from 52-week high of $51.10. Douglas A. McIntyre Source: 24/7 Wall St. | 27 Aug 2008 | 7:54 pm Cuomo's Witch HuntNew York attorney general Andrew Cuomo is drumming up a lot of attention for his ongoing investigation into the auction-rate securities business. This time, he wants to know if Fidelity had incentives to sell its clients the bonds that were underwritten by Goldman Sachs.Forgive us, but we fail to find what the big deal is here. Goldman, which was the fifth-largest underwriter of the bonds that saw their market freeze up earlier this year, has so far avoided the multibillion-dollar settlements its Wall Street brethren have ponied up to make individual investors whole again. Goldman agreed to buy back $1 billion of the securities from its own clients, but it has so far not agreed to reimburse clients who bought their securities through third-party brokerages like Fidelity. Cuomo apparently became interested in Fidelity's relationship with Goldman when his office discovered that most of the A.R.S. held by Fidelity clients were underwritten by Goldman. State regulators in Massachusetts, where Fidelity is based, want Goldman to pay those clients back. So does Fidelity. We don't know many details about what kinds of incentives might have been involved. A source told the Wall Street Journal that possible incentives include "underwriting of private offerings that Fidelity develops for "accredited," or wealthy, investors, and financial-counseling services that Goldman's Ayco unit provides to Fidelity executives." But there's another detail worth noting before anybody starts calling for a perp walk. A Fidelity spokesperson told the Journal that the bonds were held in just 600 of the brokerage's accounts. Now, Fidelity is huge. It manages $1.6 trillion in assets. In addition to its self-directed brokerage and retirement-account services, Fidelity has an army of registered investment advisers who cater to just the kind of investor who might listen to a sales pitch on auction-rate securities. It counts 4,000 clients in this unit alone. So 600 Fidelity accounts have them? Whatever "incentives" Goldman may have offered Fidelity, they didn't work very well. The A.R.S. ended up just 15 percent of Fidelity's entire wealth management group. Considering that over 100,000 investors held these securities when the market dried up, the fact that only 600 of them were at Fidelity makes it seem more like their brokers failed at marketing the products well. Goldman should just pay them off and get Cuomo off its back. The report says that Fidelity may have pushed the Goldman products because the brokerage used other services from Goldman Sachs. Again, what exactly is unusual about this? Hasn't everybody learned by now that if your broker is pushing something on you, there's probably a good reason why? The privately held Fidelity is a colossus in an industry that's rife with so many conflicts of interest and hidden fees that regulators can't keep up. It's hardly shocking that Goldman might have struck a deal to sell its products through Fidelity and that Fidelity uses Goldman for other services. Retail investors holding the bag on the failed auction-rate securities deserve to be paid back, regardless of who sold them to them. The third-party brokerages and the investment-banking underwriters should come to terms on how to handle those settlements and move on. If Cuomo can force that to happen, then so be it. And if Cuomo really wants to find it, there's probably plenty of dirt to unearth at Fidelity and the rest of the 401(k) industry. But 600 accounts with Goldman-underwritten auction-rate securities isn't the place to start. Related Links Money-Market Datapoint of the Day No Security in Securities The Abstract: Jackson Hole Symposium Papers Source: Portfolio.com: Top 5 | 27 Aug 2008 | 7:30 pm SEC plans for global accounting standardsUS companies are set to switch to international accounting rules so all the world's most important listed groups can report according to the same standardsSource: FT.com - US homepage | 27 Aug 2008 | 7:21 pm 3 Stocks to Watch: AMLN, BGP, IKN (Market Movers)Borders and Ikon printed surprising gains. But fatal complications haunted Amylin.Source: SmartMoney.com | 27 Aug 2008 | 6:41 pm Muni Bonds Paying for Others' Mistakes (Ticked Off)At current prices, muni bonds deserve a look for taxable accounts.Source: SmartMoney.com | 27 Aug 2008 | 5:58 pm Inflation fears steer ECB away from rate cutsEuropean Central Bank policymakers signal fresh alarm over the outlook for eurozone inflation even as German data indicate that headline inflation rates have fallen from record highsSource: FT.com - US homepage | 27 Aug 2008 | 5:17 pm Apple (AAPL) iPhone Picks Up Ground On RIM (RIMM)
RIM's (RIMM) Blackberry continues to be in the lead with 79% of buyers planning to buy its products in the fourth quarter, but that is down from 82% in May. Looking at the market as a whole, 29% of those asked said they would be spending less on IT products in the fourth quarter, up from 24% in the May poll. Douglas A. McIntyre Source: 24/7 Wall St. | 27 Aug 2008 | 5:16 pm Morgan Stanley Reduces Earnings Estimate for Goldman SachsSource: Bloomberg - All Podcasts | 27 Aug 2008 | 4:53 pm A Tiny Ray Of Hope In Russia (BP)
It appears that Moscow is prepared to honor a deal which many observers believe that it controls through allies of the Kremlin, the arrangement behind the joint venture called TNK-BP. According to Reuters, "The crisis at TNK-BP, which produces a quarter of BP's worldwide oil output, hit the headlines after BP accused the Russian side of using 1990s-style corporate raider tactics to grab control of the venture." Recent meetings between BP management and the controlling shareholder of Russia's interest appear to be making progress and a deal "may come in weeks." BP could use the relief. Over the last three months, its shares are off almost 25% while the stock of rival Exxon Mobil (XOM) is only down 10%. Douglas A. McIntyre Source: 24/7 Wall St. | 27 Aug 2008 | 4:24 pm Bad Luck or Bad Management?What a mess. But at least it's a familiar mess. Google Extends Web Search Lead What if Software Could Tell You the CFO is Hiding Something on the Earnings Conference Call? Microsoft Getting Tetchy About Vista Bashing Source: Portfolio.com: Top 5 | 27 Aug 2008 | 4:00 pm Jockeying for a SaleHedge funds are sometimes described in the media as if they were the modern equivalents of speakeasies: secretive, exclusive clubs where something shady must be going on inside.So it is appropriate that two hedge funds are going after the owner of the most famous former speakeasy, the "21" Club in Manhattan. Two funds run by Steven Cohen and David Shaw are pushing the Orient-Express Hotels, which also owns luxury hotels, restaurants, and river-cruise tours, to change its share structure to make it easier for a potential sale, reports Zachery Kouwe in the New York Post. The hedge funds, which own about 14.3 percent of Orient-Express, have called for a special meeting of shareholders to vote on the funds' proposal to do away with the company's Class B shares that give voting control to founder James Sherwood and several others, Kouwe says. Shaw has said that it has "never seen a more unresponsive corporate-governance structure" than that at Orient-Express. Shares of luxury-hotel chains have slumped this year, as the segment has shown it is not immune from a broad economic slowdown. Nearly a year ago, Orient-Express turned down a buyout offer of $60 per share from Dubai Holding. Its shares haven't come close to that level since, closing on Tuesday at $34.57, and the prospects of another offer are dim. If the hedge funds are ultimately successful in getting Orient-Express sold, they may want to celebrate at the "21" Club. After all, it is where Gordon Gekko takes Bud Fox in Wall Street to educate him on the ways of the new money. But the hedgies will have to leave their khakis and sweaters at the office. Jackets are still required at "21." Related Links Hedge Fund Managers Not Earning Their Keep Why Hedge Fund Fees Make Sense The Million Dollar Active vs Passive Wager Source: Portfolio.com: Top 5 | 27 Aug 2008 | 12:30 pm A Qik HitMarc Andreessen, the co-founder of Netscape, has a reputation for being able to see what lies just around the bend.That's why his investment in mobile streaming-video startup Qik, (pronounced "quick") is evidence that the next great tech battleground will likely be the palm of your hand. Until recently, most of the attention in the mobile video space has focused on bringing Web content to your phone. Qik offers an alluring new twist to internet users increasingly comfortable with sharing their lives online: the ability to stream cell-phone video to the Web in real time. Andreessen and Qik are hoping to capitalize on the growing willingness of people to broadcast everyday details of their lives online—a trend that has achieved expression in everything from Twitter, the microblogging service, to Justin.tv, the "life-casting" community. "Go LIVE with your life by streaming anytime, anywhere—right from your phone," the company says on its website. "Be an eyewitness, capture those first steps, or whip up your own streaming video blog." Last month, as the service opened to the public, the company rolled out new features that allow users to stream video from their phones to Facebook, MySpace, and other websites. Andreessen, who is widely respected in Silicon Valley, adds a dose of visibility to Qik, which has fought to stand out amid a crowded field of mobile-video startups, including Kyte and Flixwagon. Qik, which had previously raised $4 million, did not disclose how much Andreessen and his partner, Ben Horowitz, invested in the company—other than calling it "significant"—but said the two had joined its board of directors. "We are thrilled to have Marc and Ben involved in Qik, both as investors and advisers," Ramu Sunkara, Qik's chief executive, said in a statement. "Marc is a true visionary and seasoned technology investor. He brings strong entrepreneurial and innovation experience to Qik. It is great to have them both on board to help us grow Qik and guide us on how we can change the way people communicate and share live experiences around the world." Andreessen declined to comment on his investment in Qik, which he said "speaks for itself." The investment in Qik comes as the company is starting to generate buzz beyond the insular world of Silicon Valley, where it has already been praised by notable Web personalities including Jason Calacanis and Robert Scoble, who has written that the service "freaking rocks." Related Links Andreessen Joins Facebook Board; Business Model Still M.I.A. Andreessen, Qik, and Whatever Else Facebook: The Movie in the Works Source: Portfolio.com: Top 5 | 27 Aug 2008 | 12:00 pm
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