World Business News Headlines for September 1, 2008

Futures Movers: Oil loses ground as Gustav nears landfall

Oil futures turned lower Monday in electronic trading as weather models showed little sign Hurricane Gustav would strengthen before making landfall later in the day on the U.S. Gulf Coast.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 11:50 am

Gustav fears ease; sterling and global stocks fall

LONDON (Reuters) - Financial markets began the month in a volatile mood on Monday with economic fear driving equities lower and gloom about Britain's downturn knocking sterling to a 12-year low.

Source: Reuters: Business News | 1 Sep 2008 | 11:35 am

Oil market waiting on Gustav

As Hurricane Gustav neared the Gulf coast Monday, oil prices fell after spiking more than $3 on Sunday as the world oil market waited for the potentially devastating storm to come ashore.

Source: Business and financial news - CNNMoney.com | 1 Sep 2008 | 11:32 am

Recession fears push pound down

The pound falls against the euro and the dollar amid fresh fears about state of the UK economy.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 11:29 am

London Markets: U.K. stocks edge higher as sterling drops

Shares in London’s top index on Monday managed to trade in the green on Monday, with exporters higher as Chancellor Alistair Darling’s warning that the economy could be facing its worst crisis for 60 years piled more pressure on sterling.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 11:29 am

Commerzbank to axe 9,000 jobs in Dresdner takeover (Reuters)

Reuters - Commerzbank plans to cut almost 2 billion euros ($3 billion) in costs by slashing 9,000 jobs and shrinking investment bank Dresdner Kleinwort after buying Dresdner Bank, but investors appeared unconvinced by the deal.

Source: Yahoo! News: Business | 1 Sep 2008 | 11:27 am

Commerzbank to axe 9,000 jobs in Dresdner takeover

FRANKFURT (Reuters) - Commerzbank plans to cut almost 2 billion euros ($3 billion) in costs by slashing 9,000 jobs and shrinking investment bank Dresdner Kleinwort after buying Dresdner Bank, but investors appeared unconvinced by the deal.

Source: Reuters: Business News | 1 Sep 2008 | 11:27 am

Vodafone warning on fees shake-up

Millions of mobile phone users in Europe might switch off their handsets due to proposed reforms to call charges, Vodafone says.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 11:20 am

London Stock Exchange cuts fees

The London Stock Exchange introduces big cuts in fees for traders, as a response to increasing competition.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 11:19 am

Vivendi keeps 2008 outlook, no need for cash call

PARIS (Reuters) - Vivendi , armed with a fresh contract with The Rolling Stones and its new Activision Blizzard gaming venture, kept its 2008 profit goal as it posted a rise in second-quarter underlying earnings.

Source: Reuters: Business News | 1 Sep 2008 | 11:19 am

Vivendi keeps 2008 outlook, no need for cash call

PARIS (Reuters) - Vivendi , armed with a fresh contract with The Rolling Stones and its new Activision Blizzard gaming venture, kept its 2008 profit goal as it posted a rise in...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 11:19 am

Goldman Sachs gets nod for Indian mutual fund unit

MUMBAI (Reuters) - Goldman Sachs said it has regulatory approval to launch mutual funds in India, Asia's third-largest economy, joining the likes of AIG , JPMorgan and South Korea's Mirae Asset who have started operations in the past 18 months.

Source: Reuters: Business News | 1 Sep 2008 | 11:17 am

Goldman Sachs gets nod for Indian mutual fund unit

MUMBAI (Reuters) - Goldman Sachs said it has regulatory approval to launch mutual funds in India, Asia's third-largest economy, joining the likes of AIG , JPMorgan and South Korea's Mirae
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 11:17 am

Arab group claims Man City deal

A Middle-East company claims to have completed a takeover of Manchester City.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 11:16 am

Europe Markets: Stocks in Europe edge lower, Commerzbank retreats

European shares kicked off the first day of September on a downbeat note on Monday, with Commerzbank leading the banking sector lower after the German lender agreed to buy competitor Dresdner Bank.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 11:11 am

Report Card: Workers worse off on pay, employment

This Labor Day finds workers in worse shape than they've been in years, according to a scorecard released Monday by Rutgers University. In its first national labor scorecard, the Rutgers
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 11:08 am

Commerzbank shares drop on Dresdner deal

Investors gave the agreement between Commerzbank and Allianz to create a new heavyweight German rival to Deutsche Bank a thumbs down on Monday but politicians welcomed the historic deal
Source: FT.com - US homepage | 1 Sep 2008 | 11:08 am

Commerzbank shares drop on Dresdner deal

Commerzbank shares sharply on Monday after saying it had agreed to buy Dresdner Bank from Allianz, the insurer, in a 9.8bn (7.9bn) deal that will reshape German banking but was met cautiously by investors...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 11:02 am

Oil falls as Gustav shows no sign of strengthening (Reuters)

Reuters - Oil fell on Monday as Hurricane Gustav showed no signs of picking up more strength as it barrelled toward the Louisiana coast after forcing the shutdown of nine refineries and nearly all U.S. Gulf of Mexico oil production.

Source: Yahoo! News: Business | 1 Sep 2008 | 10:55 am

Oil falls as Gustav shows no sign of strengthening

LONDON (Reuters) - Oil fell on Monday as Hurricane Gustav showed no signs of picking up more strength as it barrelled toward the Louisiana coast after forcing the shutdown of nine refineries and nearly all U.S. Gulf of Mexico oil production.

Source: Reuters: Business News | 1 Sep 2008 | 10:55 am

Mortgage approvals tumble to record low

The number of mortgages approvals has dropped by 70 per cent to a record low in July, the Bank of England has said.
Source: Telegraph Business | 1 Sep 2008 | 10:50 am

Mortgage approvals tumble to record low

The number of mortgages approvals has dropped by 70 per cent to a record low in July, the Bank of England has said.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 10:50 am

European shares slide

Europe's main stock markets dropped on Monday after Tokyo closed sharply lower and oil prices rose, while banking shares were in focus after Commerzbank snapped up German peer Dresdner.
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 10:48 am

HSBC says super-rich clients moving into cash

GENEVA (Reuters) - Many of the world's wealthiest people have moved their money out of stocks and bonds and into cash, the head of HSBC's Swiss private banking unit said on Monday.

Source: Reuters: Business News | 1 Sep 2008 | 10:48 am

Asian markets sink on economic and Gustav worries

Asian stock markets dropped sharply Monday, led by exporters like Canon and LG Electronics, amid worries over slowing global demand and crude prices as Hurricane Gustav bore down on Gulf...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 10:46 am

Accor: Executive Committee Appointments

PARIS, September 1 /PRNewswire-FirstCall/ -- Gilles Pelisson, Director and Chief Executive Officer, has strengthened his Executive Committee by appointing four new...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 10:46 am

Alitalia: US Airlines Are Not Off The Hook (AMR)(UAUA)(NWA)

Alitalia went belly up over the weekend. The causes were the same as for most recent airline failures. Fuel is too high, and do are debt-loads. Passenger traffic is being undermined by a slowing economy.

The vultures have come to feed on the carrion. Investment groups and Air France have given indications that they would like to own a piece of the Italian carrier. They would like to have most of the debt go away first. If Chapter 11 has any consistent benefit for airliners it is that debt holders are obliterated.

Alitalia does not look terribly different from most of the US international carriers, especially AMR (AMR), Northwest (NWA), and UAL (UAUA), each of which operate substantial service outside America.

With oil falling from $140 a barrel to under $120, most airline stocks have made significant recoveries, but are still well down. UAL trades at $11 against a 52-week high of almost $52. Its long-term debt tops $7 billion.

It is a sucker's bet to think that airlines can do well with oil at $120. Even if carriers were debt-free and passenger demand robust, there is nothing to offset hundreds of millions of dollars in extra fuel prices.

Alitalia differs from other airline bankruptcies because it is so large. Carriers have used Chapter 11 to cleanse balance sheets before. The next stop for that practice may well be the US.

Douglas A. McIntyre

Source: 24/7 Wall St. | 1 Sep 2008 | 10:45 am

China sets sights on rail record

China plans to produce the world's fastest bullet train for a new rail link between Beijing and Shanghai.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 10:39 am

British pound hits record euro low

The pound on Monday struck an all-time low against the euro after Britain's finance minister gave a bleak assessment of the economy ahead of a Bank of England interest rate decision due...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 10:37 am

Lehman in talks with KDB to raise $6 billion: report (Reuters)

Reuters - Lehman Brothers Holdings has intensified talks with Korea Development Bank (KDB) to raise as much as $6 billion in a share sale that could be concluded this week, the Sunday Telegraph reported.

Source: Yahoo! News: Business | 1 Sep 2008 | 10:30 am

Lehman in talks with KDB to raise $6 billion: report

SEOUL (Reuters) - Lehman Brothers Holdings has intensified talks with Korea Development Bank (KDB) to raise as much as $6 billion in a share sale that could be concluded this week, the Sunday Telegraph reported.

Source: Reuters: Business News | 1 Sep 2008 | 10:30 am

Gustav And OPEC Conspire To Alter Oil's Math

With Gustav shutting most of the oil and gas production out of the Gulf of Mexico, it is unavoidable that prices for the commodities will rise. The US government will probably open the Strategic Oil Reserve, but that is not enough supply to cushion a long interruption in output.

The only realistic alternative available to keep crude prices in line is OPEC. The cartel produces 40% of the world's oil. A little help from the group could tide US oil demand over for awhile, at least while domestic production comes back on line.

But, OPEC has become surly when it comes to crude prices. The oil minister from Libya remarked to Bloomberg about the upcoming OPEC meeting, ``If the market continues as it is, well-supplied, if not oversupplied, no action is needed."

The definition of supply has been subjective and debated, especially over the last year, as prices spiked up. OPEC was of no visible help when oil moved above $140. There have been no statements from the organization as rigs and refineries have been shuttered by the hurricane. There probably won't be.

While it does not seem possible that OPEC would hope to profit from a large storm cutting US capacity, that is, indeed, what is likely to happen. Winter is not that far away. Heating oil demand will start to rise within the next 60 days. The price consumers will pay for refined product will be on its way up again.

OPEC will not begin to increase shipment, but it will make more money.

Douglas A. McIntyre

Source: 24/7 Wall St. | 1 Sep 2008 | 10:29 am

Hedge fund Atticus loses more than $5 billion: source

LONDON (Reuters) - U.S. activist hedge fund Atticus Capital has lost more than $5 billion this year, a source familiar with the matter told Reuters, after its funds were hit by heavy falls in financial stocks.

Source: Reuters: Business News | 1 Sep 2008 | 10:28 am

Hedge fund Atticus loses more than $5 billion: source

China's PMI measures signal softening trend, near contraction

Manufacturing activity in China eased in August amid weaker global demand and Olympics-related factory shutdowns, although the pace of activity is believed to remain expansionary.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 10:26 am

Commerzbank leads European bourses lower

Commerzbank led European share prices downhill on Monday after agreeing to buy Dresdner Bank from insurance group Allianz, knocking bank share prices as mining and metals prices lost ground. In late morning...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 10:21 am

HSBC says super-rich clients moving into cash (Reuters)

Reuters - Many of the world's wealthiest people have moved their money out of stocks and bonds and into cash, the head of HSBC's Swiss private banking unit said on Monday.

Source: Yahoo! News: Business | 1 Sep 2008 | 10:20 am

HSBC says super-rich clients moving into cash

GENEVA (Reuters) - Many of the world's wealthiest people have moved their money out of stocks and bonds and into cash, the head of HSBC's Swiss private banking unit said on Monday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 10:20 am

Gulf oil fields idled ahead of Gustav (Reuters)

Reuters - U.S. energy companies shut nearly all offshore Gulf oil and gas production and raced to bring down flood-prone Louisiana refineries on Sunday ahead of Hurricane Gustav, which threatens to rival the wrath of 2005's Katrina.

Source: Yahoo! News: Business | 1 Sep 2008 | 10:14 am

Gulf oil fields idled ahead of Gustav

HOUSTON (Reuters) - U.S. energy companies shut nearly all offshore Gulf oil and gas production and raced to bring down flood-prone Louisiana refineries on Sunday ahead of Hurricane Gustav, which threatens to rival the wrath of 2005's Katrina.

Source: Reuters: Business News | 1 Sep 2008 | 10:13 am

Ryanair rounds on Aer Lingus fuel surcharges

Ryanair, the budget airline which owns almost 30 per cent of Aer Lingus, has demanded its rival scrap fuel surcharges, saying that the airline is losing customers on long-haul traffic because of them.
Source: Latest Business News from Times Online | 1 Sep 2008 | 10:11 am

Currencies: British pound plunges on Darling's weak outlook

The beleaguered British pound accelerated its recent fall, plunging 1.3% against the U.S. dollar to a level last seen in April 2006 after U.K. Chancellor of the Exchequer said the economic environment is the most difficult in 60 years.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 10:11 am

Manufacturing jobs 'now at risk'

An employers group urges the government to tackle economic concerns "head on" to reduce the impact on manufacturing jobs.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 10:03 am

Mortgage approvals hit fresh low

The number of new mortgages approved for home buyers fell in July to just 33,000 - down by 71% on a year ago.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 9:54 am

Microsoft to slash Xbox 360 price in Japan

Demand for the Xbox 360 has been tepid in Japan, mainly due to a lack of popular games. In contrast, the market-leading Wii is thriving on a range of innovative software, prompting Nintendo to raise its earning forecast
Source: FT.com - US homepage | 1 Sep 2008 | 9:48 am

Microsoft to slash Xbox 360 price in Japan

TOKYO, Sept 1 Microsoft Corp said it will slash the price of its Xbox 360 game consoles in Japan by up to 29 percent, below Nintendo Co's Wii and Sony Corp's PlayStation 3, in a bid to jump-start its...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 9:48 am

Goals Soccer Centres plans major expansion

Goals Soccer Centres strengthened its claim for promotion to the recession-proof league as it unveiled strong first-half results and said it has 150 new 5-a-side centres in its sights.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 9:45 am

Goals Soccer Centres plans major expansion

Stocks to Watch: Stocks in focus for Tuesday

Among the companies whose shares are expected to see active trade in Tuesday's session are the major oil companies as well as Boeing, Elbit Systems, Ericsson, Prudential and Sciele Pharma. Wall Street is closed on Monday for the Labor Day holiday.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 9:40 am

Pound drops to record low against euro

The pound dropped to a record low against the euro on Monday after Alistair Darling, the UK's finance minister, said the country's economy may be facing its worst downturn in 60 years. The comments added...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 9:40 am

Media Digest 9/1/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Hurricane Gustave is heading toward New Orleans after shutting down most oil production in the Gulf of Mexico.

Reuters reports that Commerzbank will by Dresdner Bank for $14.5 billion.

Reuters reports that the Korean Development Bank is in talks to take a piece of Lehman (LEH)

Reuters reports that MTV (VIA) will launch an international HD channel.

Reuters writes that China is looking to Japan's past to see how its economic expansion could play out.

According to The Wall Street Journal Chancellor of the Exchequer Alistair Darling said the U.K. could be facing the worst economic conditions in 60 years.

The Wall Street Journal writes that several firms are looking at assets of bankrupt airline Alitalia.

The New York Times reports that web TV has had a few large hits but has not come up with a sucessful model.

The FT writes that Atticus Capital, one of New York’s most powerful hedge funds, has lost $5 billion this year.

Bloomberg reports that gas and oil prices have begun to rise as oil production in the Gulf has been stopped.

Douglas A. McIntrye

Source: 24/7 Wall St. | 1 Sep 2008 | 9:38 am

FTSE falls as sterling hits fresh lows

London equities fell on Monday, with losses for stocks exposed to consumer spending leading the way downwards on worsening fears about the health of the UK economy.The FTSE 100 started September with a...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 9:37 am

Mortgages approvals plunge 71% to record low

The malaise in the housing market worsened in July as the number of mortgages approved for house purchase fell by 71 per cent to a record low of 33,000 home loans.
Source: Latest Business News from Times Online | 1 Sep 2008 | 9:35 am

Asia Markets 9/1/2008 (CHL)(SNP)

Markets in Asia were sharply lower.

The Nikkei fell 1.8% to 12,834.

The Hang Seng fell 1.7% to 20.906. China Mobile (CHL) fell 1% to 89.60. China Petroleum (SNP) rose 1.3% to 7.69.

The Shanghai Composite fell 3% to 2,325.

Data from Reuters

Douglas A. McIntrye

Source: 24/7 Wall St. | 1 Sep 2008 | 9:17 am

Tech stocks, exporters fall on Asian markets

Asia Pacific stock markets started the week badly on Monday, as technology stocks dropped sharply in the wake of the US computer maker Dell's worse-than-expected fall in profits on Friday, and exporters...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 9:17 am

Asia Markets: Exporters and techs weigh down regional stocks

Asian markets drop, with regional exporters such as Honda and LG Electronics taking a hit on worries about the impact on demand from a slowing global economy.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 9:04 am

Oil prices rise as Gustav looms

Oil prices gain more than $1 after energy firms shut down almost all oil and gas production in the Gulf of Mexico.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 9:03 am

Commerzbank buys ailing Dresdner

Germany's Commerzbank agrees to buy Dresdner Bank from insurer Allianz in a deal worth 9.8bn euros.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 9:01 am

Japan's Shinogi to pay $1.4 billion for Sciele Pharma

Shionogi & Co., Japan’s sixth largest pharmaceutical company by market capitalization, said Monday it will acquire the Atlanta pharmaceutical firm Sciele Pharma Inc. for $1.4 billion, in a strategy to expand its U.S. presence.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 8:47 am

Pound falls to two-year low on Darling blunder

The pound fell to a two-year low of $1.80 against the dollar today as the market digested last week's comments by Chancellor Alistair Darling that Britain could be heading for the worst economic conditions for 60 years.$
Source: Latest Business News from Times Online | 1 Sep 2008 | 8:44 am

Chinalco eyes bigger stake in Rio Tinto

SHANGHAI, Sept 1 Chinese aluminium maker Chinalco may increase its minority stake in Anglo-Australian miner Rio Tinto if market conditions are right, but has no timetable for such a move, its president...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 8:44 am

Japan's Shionogi to buy Sciele Pharma

TOKYO, Sept 1 - Shionogi & Co, Japan's sixth-largest drug maker by market value, said it planned to buy U.S.-based Sciele Pharma Inc for $1.4bn as it seeks to expand in the key U.S. market. Shionogi...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Sep 2008 | 8:43 am

Commerzbank shares slump on Dresdner deal

Shares of Commerzbank slumped 6% on Monday after reaching a deal over the weekend to buy Dresdner Bank from Allianz for at least 8.8 billion euros, or $12.9 billion.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 8:41 am

MTV Networks to launch international HD channel

NEW YORK (Reuters) - Viacom Inc's MTV Networks International will launch its first high definition cable channel outside the United States this month, with more in Europe and Latin...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Sep 2008 | 8:31 am

Vivendi confirms outlook as quarterly profit rises 12%

French media, entertainment and telecoms giant Vivendi SA Monday posted a 12% increase second-quarter profit as a solid performance from its Canal Plus pay-TV unit offset weakness in its music publishing division.

Source: MarketWatch.com - Top Stories | 1 Sep 2008 | 8:31 am

Housing market 'needs more help'

Government must take "decisive action" to help the housing market, say the Royal Institution of Chartered Surveyors.
Source: BBC News | Business | World Edition | 1 Sep 2008 | 8:23 am

Hurricane Gustav fears force up oil prices

Oil prices today rose by $1 to more than $116 as Hurricane Gustav hurtled towards America's Gulf coast, forcing the closure of three quarters of crude production in the region.$
Source: Latest Business News from Times Online | 1 Sep 2008 | 7:52 am

Brown tries to revive premiership

Gordon Brown is to unveil a multi-million pound package of measures aimed at reviving the moribund housing market and restoring his authority as prime minister
Source: FT.com - US homepage | 1 Sep 2008 | 7:43 am

Commerzbank reveals Dresdner cost-cutting plans

More than 9,000 jobs are to be axed as part of Commerzbank's €9.8 billion (£7.9 billion) takeover of German rival Dresdner Bank, it announced today. The losses are expected to save €1 billion.
Source: Latest Business News from Times Online | 1 Sep 2008 | 7:41 am

Tips for managing a small business' books

Dear Karen: My husband and I are starting a roofing and decking business. Where can we get help with the bookkeeping?

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Proper insurance coverage can protect small businesses in a disaster

Small-business owners dealing with damage caused by Hurricane Gustav or Tropical Storm Fay -- or this summer's Midwest flooding or California wildfires -- probably are feeling some regret because they didn't have adequate insurance coverage. And so the cost of salvaging a building or the business itself is falling squarely on them.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Hurricane Gustav shuts 15% of U.S. refining capacity

Gasoline prices are stable but a long disruption could spur large increases.

Hurricane Gustav's threat to the Gulf Coast halted about 15% of U.S. refining capacity Sunday, though prices at the pump haven't risen dramatically.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Program would help at-risk L.A. residents get construction jobs

Officials are working out final details of an agreement that could provide access to construction jobs for disadvantaged residents.

Business leaders, trade unions, community activists and the Los Angeles Community Redevelopment Agency say they are on the verge of an agreement that could help provide access to middle-income construction jobs for disadvantaged Angelenos.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Batman swings past $500 million

'The Dark Knight' is only the second film in Hollywood history to cross that mark at the domestic box office.

Batman's rich alter-ego Bruce Wayne has added half a billion dollars to his riches.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Sony sees a bright spot in flat-panel TVs

They will be a hot holiday item even in a down economy, says the president of Sony's U.S. and Mexico division.

Stan Glasgow is in charge of a business with sales dwarfing the gross domestic product of some countries.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

California winemakers brace for smaller supply of grapes

Growers and vintners estimate this year's crop in the state could be 20% smaller than in 2007, hurt by bad weather.

As California's winemakers begin the 2008 harvest, they are scrambling to find enough Pinot Noir, Chardonnay and Cabernet Sauvignon grapes.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Deficit looms for California's unemployment benefit fund

The unemployment fund's shortfall could reach $1.6 billion by the end of 2009.

With joblessness at a 12-year high and expected to head higher, California's fund for paying unemployment benefits is about to go broke.

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

USC legal clinic helps small businesses

A USC clinic offers aid with getting incorporated, drawing up documents and other services -- for free

Scrawled across the corner of her bathroom mirror are the words entrepreneur Sheri Varela tries to live by: "Do what you love."

Source: L.A. Times - Business | 1 Sep 2008 | 7:00 am

Nine Telecom workers on $1 million plus

Telecom had nine employees whose remuneration topped $1 million in the year to June 30, the company's annual report shows. The top package was for a range of $3.71m to $3.72m, followed by a package of $2.72m to $2.73m. The remaining...
Source: New Zealand Herald - Business | 1 Sep 2008 | 4:36 am

Nine Telecom staff with salaries over $1m - report

Wise Guys, Wise Words

It's been a summer of star power on Portfolio.com with the likes of Andy Grove, Christie Hefner, and Harvey Weinstein telling our readers exclusively what they think about some of the biggest issues facing the business world.

Here's a quick reprise of their choice words.

Harvey Weinstein
Co-chairman, The Weinstein Company
"Independent films still are the underdog…. People have been entertained, they've escaped the heat and reality in movie theaters, but have they been impassioned by a movie this summer? Have they talked about it long after it ended because it left them seeing something in a different way or questioning reality? And I don't mean trying to recall who designed Carrie's wedding dress—but the bigger questions.”
Indies v. Superheroes and Starlets
Playas, July 24

Christie Hefner
C.E.O., Playboy Enterprises
"Rather than seemingly focusing on cost-cutting their way out of their problems, perhaps newspaper owners should be focused on first, how to make their online content and the online experience on their sites as compelling as possible, including (buckle your seat belts here!) marketing their sites; second, how to consider offering some of that content or some of those experiences in a disaggregated (i.e., not needing a subscription) manner with simple à la carte pricing—the iTunes model; and finally, how to educate advertisers about how to effectively deploy their online budgets, and why consumers online are worth a lot more than advertisers think."
Will Newspapers Learn? Or Die?
Playas, July 31

Glenn Beck
Commentator and Media Entrepreneur
"Seeing Georgia attempt to secure a cease-fire with Russia is both terrifying and laughable. Russia simply does whatever it wants to do, contract or not. Contracts don't make things happen, trustworthy individuals do. Try to only do business with those you don't need a contract with, because with most others, even an ironclad contract won't be ironclad enough…. All of this is yet another reason to avoid having business associates that are also former K.G.B. members."
The B-School of Scandals
Playas, August 21

Bob Rice
Founder, Tangent Capital, and author of Three Moves Ahead: What Chess Can Teach You About Business
Google "has grown so quickly that it has had no time to develop intelligent internal management structures. Stories of new hires being given a cube without anything in particular to do for weeks are common. The culture is exciting and attractive for talent, but there is very little sense of developing priorities around potential profitability, or even of a need to execute on ideas with which one disagrees. Call me old-fashioned, but it's hard to believe that this sort of culture will be able to buckle down when the inevitable problems arise."
Late Summer Here, and in Googleville
Playas, August 28

Andy Grove
Former C.E.O., Intel
"If we are to undertake the equivalent of open-heart surgery on our economy, we must insist that after the trauma, the fuel for all segments of the economy should be capable of coming from multiple sources of energy. This will allow us to cope with the unexpected and will prepare us for future transition to renewable sources of energy like wind and solar…. We can't lead the world if we're on our knees begging often-hostile nations for oil."
News & Markets, August 17
The Elephant in the Tank

Steve Rattner
C.E.O., Quadrangle Group
Q: Almost everyone seems to be offering investment advice. Who can I believe?
A: "First off, Jim Cramer should be shot—not literally, of course. Everywhere you turn, there are endless reams of personal-investing advice. It all does people a disservice. It's kidding an investor into believing he or she can beat the odds. Even if you do hear a useful idea, you go off and buy something, and then you don't know what to do next. Nobody ever tells you when it's time to sell or that the world has changed and your investment no longer works."
The Overqualified Adviser, July issue of Condé Nast Portfolio

Related Links
Wise Guys, Wise Words
Responding to Commenters' Questions
Andy Grove's Plug-In Manifesto

Source: Portfolio.com: Top 5 | 1 Sep 2008 | 4:00 am
Strategic Finance sale confirmed
Terms and conditions have been agreed for the sale by Australian investment company Allco HIT of all the shares in Strategic Finance. Last month Strategic, whose directors include New Zealand Rugby Union chairman Jock Hobbs, suspended...
Source: New Zealand Herald - Business | 1 Sep 2008 | 3:00 am
Gulf Coast refineries close up - oil prices steady as hurricane looms
HOUSTON - Hurricane Gustav's threat to the Gulf Coast has halted about 15 per cent of US refining capacity, as major refiners stopped operations in the region. Exxon Mobil., Royal Dutch Shell and Valero Energy., North America's...
Source: New Zealand Herald - Business | 1 Sep 2008 | 2:00 am
Wise Guys, Wise Words
It's been a summer of star power on Portfolio.com with the likes of Andy Grove, Christie Hefner, and Harvey Weinstein telling our readers exclusively what they think about some of the biggest issues facing the business world.

Here's a quick reprise of their choice words.
Harvey Weinstein
Co-chairman, The Weinstein Company
"Independent films still are the underdog…. People have been entertained, they've escaped the heat and reality in movie theaters, but have they been impassioned by a movie this summer? Have they talked about it long after it ended because it left them seeing something in a different way or questioning reality? And I don't mean trying to recall who designed Carrie's wedding dress—but the bigger questions.”
Indies v. Superheroes and Starlets
Playas, July 24

Christie Hefner
C.E.O., Playboy Enterprises
"Rather than seemingly focusing on cost-cutting their way out of their problems, perhaps newspaper owners should be focused on first, how to make their online content and the online experience on their sites as compelling as possible, including (buckle your seat belts here!) marketing their sites; second, how to consider offering some of that content or some of those experiences in a disaggregated (i.e., not needing a subscription) manner with simple à la carte pricing—the iTunes model; and finally, how to educate advertisers about how to effectively deploy their online budgets, and why consumers online are worth a lot more than advertisers think."
Will Newspapers Learn? Or Die?
Playas, July 31

Glenn Beck
Commentator and Media Entrepreneur
"Seeing Georgia attempt to secure a cease-fire with Russia is both terrifying and laughable. Russia simply does whatever it wants to do, contract or not. Contracts don't make things happen, trustworthy individuals do. Try to only do business with those you don't need a contract with, because with most others, even an ironclad contract won't be ironclad enough…. All of this is yet another reason to avoid having business associates that are also former K.G.B. members."
The B-School of Scandals
Playas, August 21

Bob Rice
Founder, Tangent Capital, and author of Three Moves Ahead: What Chess Can Teach You About Business
Google "has grown so quickly that it has had no time to develop intelligent internal management structures. Stories of new hires being given a cube without anything in particular to do for weeks are common. The culture is exciting and attractive for talent, but there is very little sense of developing priorities around potential profitability, or even of a need to execute on ideas with which one disagrees. Call me old-fashioned, but it's hard to believe that this sort of culture will be able to buckle down when the inevitable problems arise."
Late Summer Here, and in Googleville
Playas, August 28

Andy Grove
Former C.E.O., Intel
"If we are to undertake the equivalent of open-heart surgery on our economy, we must insist that after the trauma, the fuel for all segments of the economy should be capable of coming from multiple sources of energy. This will allow us to cope with the unexpected and will prepare us for future transition to renewable sources of energy like wind and solar…. We can't lead the world if we're on our knees begging often-hostile nations for oil."
News & Markets, August 17
The Elephant in the Tank

Steve Rattner
C.E.O., Quadrangle Group
Q: Almost everyone seems to be offering investment advice. Who can I believe?
A: "First off, Jim Cramer should be shot—not literally, of course. Everywhere you turn, there are endless reams of personal-investing advice. It all does people a disservice. It's kidding an investor into believing he or she can beat the odds. Even if you do hear a useful idea, you go off and buy something, and then you don't know what to do next. Nobody ever tells you when it's time to sell or that the world has changed and your investment no longer works."
The Overqualified Adviser, July issue of Condé Nast Portfolio

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Source: Portfolio.com: Top 5 | 1 Sep 2008 | 2:00 am
Quiet Before the Storm
ST. PAUL—Mark Elridge is taking a week off from his usual job as a manufacturing engineer in the hopes of making more money driving a cab in St. Paul and Minneapolis over the Republican National Convention. So far the decision isn’t paying off, he says. “I didn’t know what to expect, but I’m underwhelmed.”

Whether it’s Hurricane Gustav or the long Labor Day weekend, St. Paul is looking like a ghost town with delegates and curious locals putting around Rice Park near the XCel Center. The Twin Cities hoped to get a $150-160 million boost from the R.N.C., which was supposed to bring 2,800 jobs to the area. On the eve of the convention, though, there isn’t much going on in either city to be on track to reach those numbers.

Since Rick Davis, McCain’s campaign manager, announced plans Sunday afternoon for a scaled-down convention because of Gustav’s march to the Gulf Coast, vendors and sponsors inside the convention center are doing what they are told—to sit tight, go along as scheduled, and await further instruction.

Davis did not know how much St. Paul and Minneapolis stand to lose if the four-day convention is cut short. The $53 million in cash the R.N.C. has on hand will still go into the scheduled activities and parties, which will shift focus from party rhetoric to fundraising for disaster relief for the Gulf Coast.

Anxiety is high over the incoming of Gustav for the large number of construction workers and supervisors from New Orleans who work for the convention’s general contractor, Freeman Corp. A construction supervisor who asked not to be identified is anxiously getting updates from his wife who evacuated New Orleans last night.

He says it took her over 20 hours to drive from their home in New Orleans to a hotel in Chattanooga, Tennessee—a distance of a little under 500 miles. He does not expect the convention to be canceled and says that Freeman Corp will begin to close up shop as planned—after Thursday.

Joanna Hjelmeland, a spokesperson for Qwest Communications—a $6 million sponsor of both national political conventions—says that the phone and internet provider has a contingency plan in place in case the convention is canceled, but is not changing operations in preparation of that happening.

But parties at the R.N.C. are changing their tune, by turning into fundraisers for Gulf Coast relief. Sunday night’s Spirits of Minneapolis party hosted in part by the Distilled Spirits Council, a lobbying group for the liquor industry, has been changed to the Spirits of the Gulf Coast, with donations to benefit the Red Cross encouraged.

The Republican National Convention gets some storm damage from Hurricane Gustav, but what's the political impact to John McCain's presidential campaign? Washington editor Matthew Cooper sizes it up.

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Source: Portfolio.com: Top 5 | 1 Sep 2008 | 1:30 am
Dominion Finance writes off $26m - bad debt provisions soar to $80m
Dominion Finance Holdings says it will write off goodwill and intangibles to the tune of $26.6 million. The company also said today it had increased to $80m the level of bad debts and provisioning from $17m announced in May. It...
Source: New Zealand Herald - Business | 1 Sep 2008 | 1:00 am
Key trust to get $36,000 from Tranz Rail payout
National Party leader John Key is to receive $36,000 of a $27.7 million Tranz Rail - now government-owned KiwiRail - insider trading settlement. Thirty former Tranz Rail shareholders, including Mr Key's family trust, are to receive...
Source: New Zealand Herald - Business | 1 Sep 2008 | 12:43 am
Dresdner Bank sold for $14.4B
Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 1 Sep 2008 | 12:38 am
Hardships ahead but crisis unlikely
There is little doubt that this is the worst economic crisis in Britain since the early 1990s. Perhaps it will be just as bad, maybe a little worse. But the worst for 60 years? Worse than the dark days of the 1970s or the post-war years of austerity? Hardly.
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
City news (Mon-Fri)
City news (Mon-Fri)
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
UK business calendar: Sept 01 - 05
A guide to company results and meetings, and economic statistics.for the coming week.
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
House prices fall as buyers scent bargains
House prices fell for the eleventh month in a row in August, in the latest sign that the housing slump is deepening.
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
Avenue of opportunity for bankers
Forget Facebook. Move over MySpace. Bankers feeling the strain of the past 12 months of financial turmoil have a new online rendezvous - in the form of social networking site Bankers Avenue.
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
Hurricane Gustav losses on scale of Katrina
Insurers are bracing themselves for the biggest storm losses in years as Hurricane Gustav caused 96pc of the oil production in the Gulf of Mexico to be shut off.
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
Lower petrol prices and Games success bring out the shoppers
Shoppers hit the high street in higher than expected numbers last month despite weakening levels of consumer confidence, according to figures released today.
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
House prices fall for 11th month in row
House prices fell for the 11th month in a row in August and will continue to drop, according to a report today .
Source: Telegraph Business | 1 Sep 2008 | 12:01 am
Small biz deaths too high, say Govt safety officials
Too many people are dying on the job, says the Department of Labour, and "a disturbing number" of these fatalities are happening in small businesses. Department head of workplace health and safety Craig Armitage said workplace...
Source: New Zealand Herald - Business | 1 Sep 2008 | 12:00 am
NZ Shares: Market sharply lower
The New Zealand sharemarket was sharply down shortly after opening for the week, with top stock Telecom losing 4.3 per cent and Fletcher Building dropping 2.5 per cent. Around 10.15am the benchmark NZSX-50 index was down 26.64...
Source: New Zealand Herald - Business | 31 Aug 2008 | 11:30 pm
New Orleans evacuated as Gustav hits
Hurricane Gustav swept across the Gulf of Mexico, forcing the mandatory evacuation of New Orleans, the shutdown of offshore oil production and the cancellation of most of the programme on the first day of the Republican convention
Source: FT.com - US homepage | 31 Aug 2008 | 11:04 pm
No money, but ministers plan help for manufacturers
The Government will acknowledge the mounting pressures facing British manufacturing next week when ministers publish a strategy policy for the sector.
Source: Latest Business News from Times Online | 31 Aug 2008 | 11:00 pm
Make room for the new mobile . . . the free laptop
Mobile phone companies have long offered free handsets to customers to encourage them to sign up for contracts, but now they have a new lure to persuade people to part with their hard-earned money – free laptop computers.
Source: Latest Business News from Times Online | 31 Aug 2008 | 11:00 pm
Stalled growth and creeping inflation leave the MPC with dilemma of direction
If anyone needed proof that the dilemma for the Bank of England’s Monetary Policy Committee was deepening, it emerged last week. As official figures showed that the economy had ground to a halt for the first time since the last recession in the early 1990s and inflation had soared to a 16-year high of 4.4 per cent, more than double the 2 per cent target, the divergent views within the committee were laid bare.
Source: Latest Business News from Times Online | 31 Aug 2008 | 11:00 pm
Alistair Darling’s job on the line after recession blunder
Alistair Darling’s future was in question last night after Whitehall insiders said that he could be involved in an imminent Cabinet reshuffle.
Source: Latest Business News from Times Online | 31 Aug 2008 | 11:00 pm
Risk-seekers shun the City in search of thrills and profits overseas
Affluent people are continuing to shun the UK stock market and the property market in Britain, according to research from Barclays Wealth and the Economist Intelligence Unit.
Source: Latest Business News from Times Online | 31 Aug 2008 | 11:00 pm
Investor interest in algae grows
The idea of using algae as a significant new source of fuel is moving rapidly from the science lab to large-scale production, judging by a wave of big investments that have been made in the area in recent weeks
Source: FT.com - US homepage | 31 Aug 2008 | 10:35 pm
Atticus hit hard by credit crunch
Atticus Capital, one of New York's most powerful hedge funds, has lost more than $5bn (€3.4bn) this year, as its record as one of the world's top performing money managers was damaged by the credit crunch
Source: FT.com - US homepage | 31 Aug 2008 | 10:35 pm
Vodafone hits back at Reding
UK mobile operator says EU's plans to reform mobile termination rates will alienate users
Source: FT.com - US homepage | 31 Aug 2008 | 10:32 pm
OPEC: No Production Increase
The people at OPEC don't seem to worry about an interruption of oil supply at all, whether it is from the weather or falling production from large countries like Indonesia. The cartel has no plan to increase output. Oil at $115 is just fine.

Libya's oil minister even went so far as to say that the market was "oversupplied".
According to Bloomberg, "Oil prices may rise later this year because of the expected increase in demand during the Northern Hemisphere winter."

If OPEC holds the line and Gustav cuts Gulf output, the auto and airline industries will have an unpleasant second half of the year.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Aug 2008 | 9:57 pm
Blow to McCain over showpiece
Preparations for the Republican national convention were in chaos as several top party leaders said they planned to stay away because of Hurricane Gustav, and John McCain said the event could be scaled down
Source: FT.com - US homepage | 31 Aug 2008 | 9:54 pm
Strikes on the cards as tough times bite
A surge in workplace strikes could hit New Zealand because of tough economic conditions, an employment relations specialist says. Fred Adelhelm, who has worked with global giants like Volkswagen, Daimler Chrysler, Levi Strauss,...
Source: New Zealand Herald - Business | 31 Aug 2008 | 9:00 pm
Wall Street looks for economic clues
Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 31 Aug 2008 | 8:08 pm
Strategic posts $15.7m loss
Strategic Finance has reported a $15.7 million loss for the year to June 30, in line with guidance. The loss compared to a profit of $29.4 million a year ago. The audit report was unqualified. The company has suspended redemptions,...
Source: New Zealand Herald - Business | 31 Aug 2008 | 7:30 pm
Opposition mounts to BA-American plan
British Airways must be hoping that 'third time lucky' omens will favour its latest attempt to get closer to American Airlines, but regulators on both sides of the Atlantic may be hard pressed to take a tough line against both companies
Source: FT.com - US homepage | 31 Aug 2008 | 7:18 pm
Race for tanker deal set to start
The US Department of Defense will this week set the clock ticking on a new competition for a $35bn contract to provide aircraft refuelling tankers to the US Air Force
Source: FT.com - US homepage | 31 Aug 2008 | 6:13 pm
More than 75% of Gulf oil on lockdown
Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 31 Aug 2008 | 5:23 pm
Hard-up consumers seen seeking solace in gadgets
BERLIN (Reuters) - Consumer electronic makers are bracing themselves for slower growth in the second half of this year and in 2009, but count on consumers turning to home entertainment amid tougher economic times and tighter budgets.

Source: Reuters: Business News | 31 Aug 2008 | 4:29 pm
Middle East Sovereign Funds May Invest In Lehman (LEH)
Through the weekend the management of Lehman (LEH) is desperately meeting with any investors who will hear its case. According to the Telegraph, these includes Korea Development Bank, Chinese broker Citic Securities, and "a number of sovereign funds from the Middle East, which have been invited to participate in a capital-raising. These are understood to include investors from Abu Dhabi and Qatar."
Lehman investors should not become overly excited. Several sovereign funds have been burned by putting money into big US financials like Citigroup (C). Citic was about to drop capital into Bear Stearns, only to watch it fail. The mortgage crisis in the US could go on well into 2010. The most well-known American banks and brokerage are not immune from failure.

If Lehman does get capital, current shareholders could face tremendous dilution. The firm's stock trades at $16, giving it a market cap of $11.2 billion. An investment of $5 billion with the money coming in below market or with substantial warrant coverage, should take Lehman's stock down to $7 or $8.

Lehman may make it an as independent company, but those with stock in the company will come close to being wiped out.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Aug 2008 | 11:40 am
UK: Worst Recession In 60 Years
If the US economy looks anything like the one in the UK, Americans should brace for the worst recession since WW II. That would probably mean unemployment of close to 15% and negative GDP growth which could last the better part of two years.

Britain is facing "arguably the worst" economic downturn in 60 years which will be "more profound and long-lasting" than people had expected, Alistair Darling, the chancellor, tells the Guardian.
The US and UK economic dynamics are similar. Both are burdened by high commodities prices, troubled housing markets, and faltering employment. The UK depends more on imports of key products, especially agricultural goods, but there is not much sunlight to be found when the two country's financial dynamics are set side by side.

The largest difference between the US and UK right now may be that high government officials in England have begun to speak out about the severity of the trouble. In the US, the heads of the Fed and Treasury still talk about a recovery which is just around the corner. They still think that they have the means to hold off a deep recession.

Someone is right, and based on most data, it is the British.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Aug 2008 | 11:26 am
Gustav And $5 Gas
The media is trying to make the case that Hurricane Gustav could drive gas prices back up, perhaps beyond mid-year levels and toward $5.

The argument is fairly simple. When Katrina hit the Gulf and shut down drilling and refining capacity, gas went from $2 to $3. One the back of an envelop, gas should go from its current level of $3.75 to $5 if all the same basics hold true.

Gas hit a high of $4.11 a gallon in early July. According to the AP, Jeff Rubin, chief economist at investment bank CIBC World Markets, said that record could be shattered if Gustav seriously disrupts offshore energy production.
If the storm does a great deal of damage, the Administration says it will open the Strategic Oil Reserve. It is likely that countries with strong political ties to the US, especially Canada and Mexico, would help soften the blow of any disruption by temporarily increasing exports.

Big storm. Little result.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Aug 2008 | 11:16 am
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