House prices falling at fastest rate in 25 years

Home owners have been dealt a double-whammy of doom today, as figures showed that house prices were falling at the fastest rate in at least 25 years and the Bank of England failed to cut interest rates.
Source: Telegraph Business | 4 Sep 2008 | 1:58 pm

Mortgage rates fall back to where they were before credit crunch

Mortgage rates have fallen back to the level they were before the credit crisis sent the price of home loans soaring last year.
Source: Telegraph Business | 4 Sep 2008 | 1:20 pm

Pimco: Treasury needed to stop asset deflation

NEW YORK (Reuters) - To stop a sell-off of debt and other assets, the U.S. government will have to bring in new policies to open up the Treasury Department's balance sheet, said the manager of the world's biggest bond fund on Thursday.

Source: Reuters: Business News | 4 Sep 2008 | 12:59 pm

Economic Report: Jobless claims have biggest jump in five weeks

WASHINGTON (MarketWatch) -- First-time jobless claims jumped by the largest amount in five weeks, another sign that the U.S. labor market is faltering, according to government data reported Thursday.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:53 pm

Economic Report: Q2 productivity revised up, labor costs revised down

WASHINGTON (MarketWatch) -- The productivity of U.S. nonfarm businesses was revised higher in the second quarter than previously estimated, the Labor Department reported Thursday.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:51 pm

Jobless claims push futures further down

NEW YORK (Reuters) - Stock index futures fell further on Thursday after a government report showing an unexpected jump in the number of people filing for jobless benefits added to concern about the U.S. labor market.

Source: Reuters: Business News | 4 Sep 2008 | 12:47 pm

Poor retails sales weigh on Wall Street

Wall Street stocks were set for their fourth consecutive decline as oil prices ticked higher, while investors digested negative earnings and sales figures and anticipated some weak employment data
Source: FT.com - US homepage | 4 Sep 2008 | 12:47 pm

Ciena outlook weak, warns of order delays

NEW YORK (Reuters) - Communications equipment maker Ciena Corp reported a 59 percent drop in quarterly profit and forecast current quarter revenue that would be far below Wall Street estimates because of order delays, triggering a 20 percent fall in its shares.

Source: Reuters: Business News | 4 Sep 2008 | 12:45 pm

Before the Bell: Wal-Mart, Toll Brothers, Ciena and BP in spotlight

U.S. stock futures slipped on Thursday amid sluggish back-to-school sales from leading retailers, downbeat jobs data and a profit warning from networking firm Ciena.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:43 pm

Indications: U.S. stock futures slip amid lackluster retail, jobs data

U.S. stock futures slipped on Thursday amid sluggish back-to-school sales from leading retailers, downbeat jobs data and a profit warning from networking firm Ciena.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:40 pm

Europe, U.K. leave rates unchanged

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:39 pm

Dell bets on a small laptop

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:39 pm

Private sector cuts 33,000 jobs

The private sector shed jobs in August, dragged down by heavy losses in the manufacturing sector, according to a survey released Thursday.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:36 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:31 pm

Auto lenders losses could hit $600 billion

The nation's automakers aren't the only companies suffering from higher gas prices and weak vehicle sales. Auto lenders are feeling the squeeze as well.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:31 pm

Corrections: BP settles Russian dispute

On Sept. 4, a story incorrectly said BP technical experts were kicked out of Russia on espionage charges. Only one TNK-BP staffer was charged with espionage. The technical experts were accused of visa violations. See corrected story.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:30 pm

Decoding Obama's tax claim

There are only about 1,500 hours to go before Election Day. And that's also about how many times you'll hear snappy sound bites about the economic proposals of John McCain and Barack Obama.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:28 pm

CORRECT: BP reaches deal to settle bitter Russian dispute

Oil giant BP announces the outline of an agreement to resolve a bitter dispute over its half-owned Russian venture, TNK-BP, providing relief to investors after months of wrangling.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:27 pm

Wal-Mart August sales above Wall Street view

NEW YORK (Reuters) - Wal-Mart Stores Inc said August sales at U.S. stores open at least a year rose a better-than-expected 3 percent and gave an optimistic forecast for September as shoppers seek low prices on groceries and school supplies.

Source: Reuters: Business News | 4 Sep 2008 | 12:26 pm

ECB leaves rates on hold, global tightening nears end

FRANKFURT/LONDON (Reuters) - The European Central and Bank of England both held interest rates steady on Thursday, reinforcing the view of investors that the global rates cycle has peaked as growth risks start to outweigh inflation worries.

Source: Reuters: Business News | 4 Sep 2008 | 12:25 pm

Why cheaper oil signals trouble

The commodities bubble appears to have popped, but keep the champagne on ice.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:24 pm

Private sector cuts 33,000 jobs in August: report

NEW YORK (Reuters) - Private employers cut 33,000 jobs in August, according to a private report by ADP Employer Services released on Thursday.

Source: Reuters: Business News | 4 Sep 2008 | 12:23 pm

Subprime Today: Mortgage rates post third consecutive decline

Fixed mortgage rates slipped for the third week in a row, according to Bankrate Inc.'s survey released Thursday. The average conforming 30-year fixed mortgage rate fell to 6.55% from 6.60% a week ago, while the average 15-year fixed mortgage rate declined to 6.09% from 6.14% a week earlier.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:21 pm

Europe Markets: Exporters, airlines pressure Europe as rates kept on hold

European shares decline on Thursday, as losses for technology and other exporters offset an advance for Unilever and BP, with interest rate decisions from the Bank of England and the European Central Bank also on tap.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:19 pm

Eurozone rates on hold at 4.25%

The European Central Bank keeps eurozone interest rates at 4.25% after its latest meeting.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 12:17 pm

Wal-Mart sales show strength

Retail giant Wal-Mart on Thursday reported a gain in August same-store sales, a period that includes the key back-to-school season, that trounced expectations from analysts.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 12:17 pm

Bank keeps UK interest rate at 5%

The Bank of England holds interest rates at 5% for a fifth month as it balances a weak economy and high inflation.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 12:16 pm

Bank of England leaves key rate unchanged at 5%

The Bank of England’s Monetary Policy Committee on Thursday votes to leave its key lending rate unchanged at 5% for the fifth consecutive month, as the central bank remains boxed in by a combination of rising prices and sputtering economic growth.

Source: MarketWatch.com - Top Stories | 4 Sep 2008 | 12:14 pm

Toll Brothers posts 3Q loss as revenue falls

Toll Brothers says it swung to a loss in its third quarter as its sales fell amid the housing slump. But the home builder says it sees signs that the market is stabilizing. Toll Brothers
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 12:02 pm

Toll Brothers posts net loss; sees Q4 revenue below Q3

(Reuters) - Luxury home builder Toll Brothers swung to a third-quarter net loss, hurt by write-downs and weakened demand in most markets amid the nation's housing slump, and forecast sequentially lower revenue in the fourth quarter on higher costs.

Source: Reuters: Business News | 4 Sep 2008 | 12:02 pm

Bank of England keeps interest rates at 5pc

The Bank of England's Monetary Policy Committee has left interest rates unchanged despite the increasing threat of recession, because inflation has not yet peaked.
Source: Telegraph Business | 4 Sep 2008 | 12:00 pm

Bank of England keeps interest rates at 5pc

The Bank of England's Monetary Policy Committee has left interest rates unchanged despite the increasing threat of recession, because inflation has not yet peaked.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 12:00 pm

Boeing workers vote to strike, delay it until Friday

SEATTLE (Reuters) - Boeing Co faces a walkout by 27,000 workers on Friday after members of its largest labor union rejected the planemaker's contract offer and voted to strike unless a compromise is reached in time.

Source: Reuters: Business News | 4 Sep 2008 | 11:58 am

Economy Causing Consumers to Search for Restaurant Offers Rewardsnetwork.com Survey Reveals Changes in Dining Habits

CHICAGO, Sept. 4 /PRNewswire-FirstCall/ -- A survey* conducted this month by Rewardsnetwork.com, an online dining rewards program, found that 36% of those surveyed are dining out
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:58 am

Sony recalls 440,000 Vaio laptops

Sony says it is recalling 440,000 units of Vaio laptop computers worldwide due to faulty parts that could trigger overheating.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 11:50 am

The Bank of New York Mellon Names Robert R. Rupp Executive Vice President and Head of Enterprise-Wide Market Risk

NEW YORK, Sept. 4 /PRNewswire-FirstCall/ -- The Bank of New York Mellon, the global leader in asset management and securities servicing, has named veteran risk management
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:50 am

NXG Strategies Partners with Utility, Telecom, Health Care Companies to Reach Red Flag Compliance

BRENTWOOD, Tenn., Sept. 4 /PRNewswire/ -- NXG Strategies, LLC is the first company in the United States to present utility companies, telecommunications companies,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:50 am

Pound advances as Bank keeps rates on hold

The pound recouped some of its recent losses against the dollar on Thursday as the Bank of England kept interest rates on hold after its policy meeting.The Bank's decision to keep interest rates on hold...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 11:48 am

Jeff Kita Joins Enservio as Vice President of Engineering

NATICK, Mass., Sept. 4 /PRNewswire/ -- Enservio Inc, the nation's leading provider of contents inventory creation and valuation services, today announced the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:48 am

Good life China (GLCC) Closes Acquisition of "The People Home" Chain

BEIJING, Sept. 4 /PRNewswire-FirstCall/ - Good Life China Corporation href="http://www.goodlifechina.com">www.goodlifechina.com (GLCC) is pleased to announce that the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:45 am

Bragada(R) Luxury Mattress, Inc. Launches New Premium Mattress Line

POUGHKEEPSIE, N.Y., Sept. 4 /PRNewswire/ -- Bragada(R) Luxury Mattress, Inc. ( href="http://www.bragada.com">http://www.bragada.com ) today launched its brand-new line
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:42 am

Many retailers report sluggish August sales

Many of the nation's retailers struggled with a sluggish start to the back-to-school season, though Wal-Mart posted higher August sales Thursday as shoppers focused on buying essentials...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:41 am

Whoops! Vital flaw in Government's home loans scheme

Debate rages on about whether our recession-minded Chancellor’s measures to help the home buyers are going to swing the housing market back on an upward track, or swing voters back to the Labour cause.
Source: Telegraph Business | 4 Sep 2008 | 11:40 am

Whoops! Vital flaw in Government's home loans scheme

Debate rages on about whether our recession-minded Chancellors measures to help the home buyers are going to swing the housing market back on an upward track, or swing voters back to the Labour cause.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 11:40 am

BoE leaves rates on hold as global tightening nears end

LONDON/STOCKHOLM (Reuters) - The Bank of England held interest rates steady on Thursday with investors expecting the European Central Bank to do likewise, marking the likely peak of the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:37 am

BP, Russian partners settle TNK dispute

LONDON/MOSCOW (Reuters) - BP agreed a deal with the oligarch co-owners of TNK-BP on Thursday that overhauls the Russian oil major's management and sets a possible flotation of up to 20 percent of the company, ending months of hostile dispute.

Source: Reuters: Business News | 4 Sep 2008 | 11:34 am

Top Pre-Market Analyst Upgrades (ADS, AUTH, BRCM, EXC, NVLS, SAI, SNDA)

These are the top upgrades and positive analyst calls we are seeing this Thursday morning:

• Alliance Data (ADS) Started as Buy at B of A.
• AuthenTec (AUTH) Started as Buy at S&P Equity Research.
• Broadcom Corp. (BRCM) Started as Outperform at Credit Suisse.
• Excelon (EXC) Raised to Buy at Jefferies.
• Novellus Systems (NVLS) Raised to Overweight at Morgan Stanley.
• SAIC (SAI) Raised to Outperform at at Wachovia.
• Shanda Interactive (SNDA) Raised to Outperform at Oppenheimer.

Jon C. Ogg
September 4, 2008

Source: 24/7 Wall St. | 4 Sep 2008 | 11:30 am

Dow Jones Alternative Energy Innovations Conference Showcases Next Wave Of Clean Energy Powerhouses

Keynotes from leaders of Chevron Energy Solutions, Tesla Motors, California Public Utilities Commission, Philips Lighting, Robert Bosch; Oct. 21-22 at the Sofitel in Redwood City,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Sep 2008 | 11:30 am

Top Pre-Market Analyst Downgrades (KELYA, KLAC, LRCX, MRVL, PNY, RHI, SNDA, XLNX)

These are the top downgrades and negative analyst calls we are seeing this Thursday morning:

• Kelly Services (KELYA) Cut to Sell at Citigroup.
• KLA-Tencor (KLAC) Cut to Equal-weight at Morgan Stanley.
• Lam Research (LRCX) Cut to Underweight at Morgan Stanley.
• Marvell Technology (MRVL) Started as Neutral at Credit Suisse.
• Piedmont Natural Gas (PNY) Cut to Neutral at Baird.
• Robert Half (RHI) Cut to Sell at Citigroup.
• Shanda Interactive (SNDA) has seen estimate and targets cut by Citigroup, JPMorgan, and Goldman Sachs.
• Xilinx (XLNX) Started as Neutral at Credit Suisse.

Jon C. Ogg
September 4, 2008

Source: 24/7 Wall St. | 4 Sep 2008 | 11:26 am

Oil prices steady as market awaits US data

Oil consolidated at around $110 a barrel on Thursday, as the market awaited news on further hurricanes approaching the energy-rich US Gulf of Mexico and weekly US oil inventory data.Nymex October West...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 11:26 am

New car sales 'hit by downturn'

New UK car registrations last month were at their lowest level for any August since 1966, figures show.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 11:22 am

Stocks poised to fall

Stocks were poised to open lower Thursday as the markets braced themselves for a slew of economic reports from the government and major retailers.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 11:22 am

House prices in double-digit fall

UK house prices recorded an annual fall of 10.9% in August leaving the average home costing £174,178, says the Halifax.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 11:21 am

UK homeowners lose 25,000 as house prices fall at fastest rate on record

UK homeowners have seen 25,000 wiped off the value of their property in the last year, according to Halifax, as house prices fall at the fastest rate on record.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 11:20 am

UK homeowners lose £25,000 as house prices fall at fastest rate on record

UK homeowners have seen £25,000 wiped off the value of their property in the last year, according to Halifax, as house prices fall at the fastest rate on record.
Source: Telegraph Business | 4 Sep 2008 | 11:20 am

Ciena Echoes Telecom & Data Slowdown (CIEN, JDSU)

Source: 24/7 Wall St. | 4 Sep 2008 | 11:17 am

Alms For The Poor: Wal-Mart (WMT) August Sales Up

Wal-Mart's (WMT) US same store sales rose 3% in August. Analysts expected about half that growth rate.

The Wal-Mart news is almost certainly a sign the the middle class is joining those below the poverty line in making the huge retailer their first and only place to shop.

It is also a signal that the recession may be deepening. Wal-Mart's "everyday low prices" allow shoppers to stretch a buck. The fact that it is not fashionable to visit the stores is left by the wayside as consumers run out of money.

The only cloud in Wal-Mart's silver lining was international sales. Revenue from overseas was only up 13% for August. The number has been rising at 17% year-to-date.

August global revenue at WMT rose almost 9% to $30.7 billion. Clearly the law of large numbers does not currently apply to Wal-Mart. Many smaller chains are losing customers and losing money.

Being the low cost provided sometimes has its advantages.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Sep 2008 | 11:16 am

This horror show oozes money

Two rifle-bearing lads enter what looks like an abandoned building. They are nervous, for good reason. Snarling vampires attack. There is violence. There is gore. There is even a heart-tugging moment when one of the humans finds his missing girlfriend - only to discover that she too is now a blood-thirsty creature of the night.

Source: Business and financial news - CNNMoney.com | 4 Sep 2008 | 11:14 am

Opec invites Brazil to join group

Iran invites Brazil, which recently announced major untapped oil sources offshore, to join oil producers' cartel Opec.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 11:12 am

BP settles dispute with Russian billionaires

Oil company BP has signed a deal aimed at resolving the long-running and bitter dispute at its Russian joint venture TNK-BP.
Source: Telegraph Business | 4 Sep 2008 | 11:05 am

BP settles dispute with Russian billionaires

Oil company BP has signed a deal aimed at resolving the long-running and bitter dispute at its Russian joint venture TNK-BP.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 11:05 am

FTSE positive after Bank holds rates

London equities rebounded on Thursday morning, after Whitbread offered embattled leisure stocks a measure of hope and Unilever leapt higher after announcing the appointment of a new chief executive. The...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 11:03 am

As Online Display Ads Falter, Yahoo! (YHOO) And New York Times (NYT) Torpedoed

It turns out that display advertising on the internet is becoming less popular with most marketers. They are turning to search text ads instead. This is probably not news to anyone in the industry, but now there is fairly solid research on the trend.

According to The Wall Street Journal, "Search ads are forecast to represent 42% of overall U.S. online ad spending in 2008, according to eMarketer, up from 40% in 2007. Display is expected to stay flat, at about 21% of overall spending."

The news is clearly bad for Yahoo! (YHOO), AOL, and Microsoft (MSFT) which get a very large portion of revenue from display advertising. As the big companies in the display industry, they at least will continue to keep most of the revenue from a faltering market.

The firm's that are likely to be scuttled by the trend are newspapers. They are relying on the online versions of their products to replace the falling revenue from their print products. That evolution is moving slowly. Print dollars are simply falling off too quickly.

Now comes the data that display revenue is not growing quickly. Newspaper websites have put their hopes on a better trend to survive.

It won't happen.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Sep 2008 | 10:50 am

BP (BP) And Russia: Trusting An Untrustful Partner

Source: 24/7 Wall St. | 4 Sep 2008 | 10:26 am

Pound's slide loses momentum

The pound recouped some of its recent losses against the dollar on Thursday ahead of the Bank of England's decision on interest rates.The Bank was expected to leave the cost of borrowing on hold at 5 per...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 10:26 am

BP moves to settle Russia dispute

BP signs an agreement with its Russian partner aimed at solving a festering dispute at joint venture TNK-BP.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 10:21 am

BP Compromises on Russian Oil Venture

BP agreed to replace the American head of its Russian joint venture and surrender some control on the board to resolve a bitter dispute with its Russian partners.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 10:18 am

Grim backdrop to UK rate decision

The Bank of England will announce its latest interest rate decision on Thursday against a backdrop of a looming recession.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 10:17 am

Merrill's bad debt sale to South Korea agency stalls

(Reuters) - Merrill Lynch & Co's talks to sell bad loans to Korea Asset Management Corp (KAMCO) faced a deadlock due to a disagreement over price, the South Korean state agency said on Thursday.

Source: Reuters: Business News | 4 Sep 2008 | 10:11 am

Europe extends losses on air and defence stocks

European shares retreated for a second consecutive session ahead of interest rate decisions by European central banks.In late morning trade, the FTSE Eurofirst 300 was 0.4 per cent lower at 1,177.59, Germany's...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Sep 2008 | 10:10 am

China Economics 101: Stimulation Causes Inflation

The communist central government in China is starting to sweat a slowdown in the national economy of the world most populated country. It has begun to dawn on them that the "law of large numbers" will make 10% GDP growth every year somewhat difficult.

Chinese economists can see a drop in consumption in the big countries especially Japan, the US, and most of the EU.

The easy solution to China's GDP problem is for the government to throw liquidity at the system. A loosening of bank lending practices would make the nation awash in cash.

According to Reuters, "rushing into a fiscal stimulus, a hot topic of late, could make the economy a bubbling cauldron of unstable growth and inflation."

In a sense, China is joining the club of other large national economies. The two-headed coin of inflation and easy credit has been a challenge to Western governments for decades. Rising wages and a lack of housing and consumer goods allowed the US to enjoy GDP growth without insane inflation for more than a decade after WW II. US inflation rates in the 1950s averaged in the low single digits.

While inflation in China does China little good, it may be an even larger problem for the US. The question has already arisen as to whether the China can be a low-cost producer of exports for the American market Each day that options become more remote the likelihood of inflation in the US improves. No other nation has enough manufacturing capacity to replace China's output at lower cost.

A cold in China is a flu in the US.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Sep 2008 | 9:56 am

Iraq economic outlook 'improves'

Iraq's economic prospects have improved, thanks to better security, increased oil output and exports, says an IMF review.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 9:55 am

BP settles TNK dispute with Russian partners

BP has sign an agreement aimed at preserving its 50 per cent stake in TNK-BP - Russia's third-largest oil company - after a power struggle with its local partners that focused attention on the rights of foreign investors in Russia
Source: FT.com - US homepage | 4 Sep 2008 | 9:54 am

US economy 'facing stagflation'

The US economy is facing slow growth and higher prices according to the Federal Reserve.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 9:47 am

Premier Inn bolsters Whitbread

Sales at Whitbread rise, with its Premier Inn budget hotels doing well as the weak economy hits corporate travel budgets.
Source: BBC News | Business | World Edition | 4 Sep 2008 | 9:33 am

Boeing (BA): A Strike The Company Can't Afford

Boeing's (BA) machinists have decided to strike the company over wage and benefit issues. The union will hold off walking out for two days to see if a last moment deal can be reached.

A compromise seems unlikely. Boeing says it has given the workers its last offer and that the offer is unusually generous.

The aircraft firm's executives have not been terribly adroit at making a case that they cannot give the unions more. Boeing's recent news releases are filled with announcements of sales of its new Dreamliner, and its older but popular 777. Boeing has also been bullish on its prospects over the next two decades, in part due to expected sales in China.

The reasoning behind Boeing's statement that it has given the union all it can is that higher labor costs could hurt future earnings. That would be especially true if the company hit a sales downturn. By Boeing's own admission, it has a multi-year backlog of aircraft orders, so the argument is a bit thin.

Boeing's airline customers are already upset by delays in the Dreamliner's launch. Some have even asked for compensation because their plans to put the more fuel-efficient plane into service have been postponed.

Boeing's shares are at $66, down from a 52-week high of $107. Investors can see that a strike would damage earnings and give rival Airbus a chance to take some Boeing business.

Boeing's management has not done anyone a favor by holding out.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Sep 2008 | 9:26 am

AIG (AIG): Create New Company, Dump Bad Assets

AIG (AIG) may resort to a tactic that is as old as the hills. It is considering taking its worst assets and moving them into a new company. This would leave AIG with a relatively good balance sheet. Its subprime investments would no longer plague it.

According to The New York Post, the largest US insurer is working with investment bank JPMorgan Chase to arrange what is known in Wall Street lingo as a "good bank/bad bank."

At first blush, the idea would appear to be the brilliant work of geniuses. It raises the little question of who owns the firm which will get all of the junk. AIG's shares have fallen from a 52-week high of over $70 to their current price of under $23. The board of the company has gone so far as to replace the company's CEO with its chairman, Robert Willumstad.

Willumstad does not have clean hands. He was the board chief during most of the time that AIG was getting into its deep trouble. Now, his management team is proposing to "save" the company by a method which may not be practical.

If the sour investment of AIG are moved off its books, they can go one of two places. The first would be a spin-off to public shareholders. It is difficult to see how that would work. If the assets (or liabilities) are so badly impaired that AIG cannot hold them, what value do their have to stockholders?

The other option is to take the troubled capital pool and sell it to private equity. A group of outside investors might be able to hold the investments until they recover some of their value. But, with credit still tightening and the mortgage market getting worse, there may not be a "greater fool" in the marketplace who would be willing to take on the risk that the recovery necessary for the transaction to be profitable will happen anytime soon.

If AIG's current plan to get itself back on its feet is that best it can muster, the firm will be in trouble for a long time.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Sep 2008 | 9:03 am

Media Digest 9/4/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, NY State sent subpoenas to Bank of Americ (BAC) executives over auction-rate securities.

Reuters reports the Boeing's (BA) machinist union voted to strike but stay on the job two days to see if a settlement can be reached.

Reuters writes that Mitsubishi UFJ said it had no plans to invest in Lehman (LEH).

Reuters writes that US car makers has a poor August but there were some signs of hope.

Reuters writes that GMAC cut 5,000 workers at its Rescap unit.

Reuters writes that a fear of a slowdown in the China economy could lead to measures which would increase inflation.

The Wall Street Journal reports that BP (BP) is expected to sign a deal settling a bitter conflict with its Russian partners in TNK-BP.

The Wall Street Journal writes that the CFTC is investigating whether energy-market players are issuing false data.

The Wall Street Journal reports that the Fed Beige Book shows more slowing of the economy.

The Wall Street Journal reports that the International Air Transport Association says that airlines could lose over $5 billion this year.

The Wall Street Journal writes that while online search advertising is growing, display advertising is showing more modest increases.

The Wall Street Journal reports that commercial paper markets may be improving.

The Wall Street Journal reports that Microsoft (MSFT) cut its Xbox prices.

The Wall Street Journal reports that Pfizer (PFE) will invest over $700 million to develop an Alzheimer's drug.

The Wall Street Journal reports that a Medtronic spine repair treatment has been linked to dangerous side effect.

The New York Times reports that Cerberus Capital investments in Chrysler and GMAC are in trouble.

The New York Times reports that consumer spending was weak in August.

The New York Times writest that Liberty Media will make its piece of DirecTV publicly traded.

The FT writes that the US will challenge China over steel prices.

The FT writes that Google (GOOG) sees its new browser as a defensive move.

The FT reports that rising costs will hurt oil company profits.

Bloomberg reports that an effort by Merrill Lynch (MER) is facing difficulty because the company wants too high a price.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Sep 2008 | 7:56 am

Premier Inn's sales rise as businessman go budget

Leisure group Whitbread has reported a more than 10 increase in sales over the past six months at its Premier Inn chain as businessmen shun expensive hotels for cheaper alternatives during the economic slowdown.
Source: Telegraph Business | 4 Sep 2008 | 7:30 am

Abu Dhabi channels more cash to Hollywood

The oil-rich emirate is launching a production company with Hollywood partners, with more than $1 billion in financing.

Furthering the links between the United Arab Emirates and Hollywood, a venture controlled by the government of Abu Dhabi is launching a production company with a $1-billion-plus fund to make movies and digital content in partnership with three as-yet-unnamed Los Angeles producers and other international filmmakers.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

Turf war: California sues artificial-grass makers over lead content

California Atty. Gen. Jerry Brown and other law enforcement officials allege that three makers of artificial turf deliberately failed to disclose that their products contain lead.

California's attorney general wants to put a new spin on the old admonition "Don't step on the grass!"

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

U.S. auto sales continue to drag despite lower gas prices

Ford says August sales fell 26% from a year earlier. Toyota reports a 9.4% decline. Pickups and SUVs continue to depress results.

Falling gasoline prices didn't help automakers in August as economic worries and an overabundance of trucks rather than compact cars continued to drag down U.S. sales results.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

Sprinkles is frosted over cupcake newcomer Sprinkled Pink

The Beverly Hills-based chain, which has taken legal action against other rivals, demands a name change by the Montecito bakery.

Starting a business is no piece of (cup)cake. Just ask two of the newest bakeries to open in Southern California.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

Immigrants squeezed as Spain's boom turns to bust

The downturn, strikingly similar to the one in the United States, has thrown tens of thousands of recent arrivals out of work.

Lured by the promise of wealth in a booming economy, immigrants from North Africa, Latin America and other regions flocked to Spain in the last decade, quickly becoming Exhibit A in the Mediterranean nation's remarkable success story. ¶ But the surging economy -- which relied, to its eventual peril, largely on construction, tourism and service industries -- has crashed. ¶ In a real estate-fueled boom-and-bust cycle that mirrors remarkably the one in the U.S., Spain today is in the throes of a dramatic downturn. Many of the first to lose their jobs and default on loans are those same immigrants, many of whom eschewed a move to the United States to try their luck in Spain. ¶ Of nearly 460,000 who lost their jobs in the last year, about 60% were immigrants, official data show. The unemployment rate is rising three times faster among immigrants than it is for the general population. ¶ Similar economic contraction is racking communities throughout Europe, with Spain -- along with the region's other star performer, Ireland -- merely the most acute examples. Projections for growth are being slashed across the board and the word "recession" is in the air. Germany, France and Italy all posted negative growth in the second trimester of 2008.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

Air Force general sees no need for new version of Boeing's C-17 cargo aircraft

But Gen. Arthur J. Lichte says he may need additional orders of the existing plane, which could prevent the closure of the Long Beach plant that makes it.

The four-star general in charge of the Air Force's cargo fleet said Wednesday that he saw no need for a new version of the hulking C-17 cargo aircraft being proposed by Boeing Co. as a way to extend the life of Southern California's last major airplane factory.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

Cash beats path to Beverly Hills buyout fund

Pension funds and other big investors have been warned to scale back their return expectations in the private-equity buyout business.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

New Chrysler executive James Press tries to jump-start the troubled auto company

After 37 years at Toyota Motor Corp., during which time he rose to the top job in North America, James E. Press shocked the car world by jumping to Chrysler last year.

Source: L.A. Times - Business | 4 Sep 2008 | 7:00 am

NZ dollar consolidates after recent tumbles

The New Zealand dollar consolidated today after bouncing back from a sharp fall yesterday. "There has been all sorts of carnage in currency markets over the past 24 hours," Bank of New Zealand currency strategist Danica...
Source: New Zealand Herald - Business | 4 Sep 2008 | 5:43 am

Palin takes fight to Obama

Sarah Palin, the presumptive Republican vice-presidential nominee, mocked the 'permanent political establishment', blasted restrictions on oil drilling and aimed her fire at Democratic nominee Barack Obama in a defiant speech to the Republican Convention in St Paul
Source: FT.com - US homepage | 4 Sep 2008 | 4:15 am

NZ must keep up with GE progress, says AgResearch

AgResearch says more than 100 million hectares of land overseas is planted with genetically engineered crops, and New Zealand needs to be able to keep up the technology. "New Zealand's ability to remain globally competitive may...
Source: New Zealand Herald - Business | 4 Sep 2008 | 3:30 am

Lessons in finance company debacle for former boss

The losers in the meltdown of the finance company sector have not just been so-called "mum and dad" investors. The perceived wisdom is that these people have no one to blame but themselves because they relied too much on financial...
Source: New Zealand Herald - Business | 4 Sep 2008 | 3:00 am

All on track for OCR cut next week

Reserve Bank Governor Alan Bollard is expected to unveil a second cut in the Official Cash Rate next week, but economists are keen to also see his thoughts on projected economic growth and inflation. There is a consensus among...
Source: New Zealand Herald - Business | 4 Sep 2008 | 2:00 am

Average Aussie wage now $1400 per week

CANBERRA - The average weekly wage in Australia is now A$1131.40, ($1398) after growing by 3.7 per cent in the year to May. The quarterly seasonally-adjusted pace of average weekly ordinary time earnings (AWOTE) rose 0.7...
Source: New Zealand Herald - Business | 4 Sep 2008 | 2:00 am

Skellerup profits bounce back

Skellerup Holdings has reported a 60 per cent increase in annual net profit after tax to $14.7 million, including a one-off gain on the sale of assets of $2.1m. The profit, which the company attributed in part to the strong dairy...
Source: New Zealand Herald - Business | 4 Sep 2008 | 1:30 am

Fraud charges for ex-Credit Suisse brokers

US prosecutors accuse two men of scheming to obtain higher sales commissions by selling auction rate securities in the first known criminal case in­volving the collapsed market
Source: FT.com - US homepage | 4 Sep 2008 | 12:54 am

Profits Seen As California Requires Service Stations To Pony Up

Soon, gas stations throughout California will become a lot greener.
Source: Investor's Business Daily: BUSINESS | 4 Sep 2008 | 12:42 am

Business Briefs - Wednesday

Coke to buy Chinese juice firm. The world's largest soft drinks maker has offered $2.5 bil in cash for juice maker China Huiyuan, in what would be...
Source: Investor's Business Daily: BUSINESS | 4 Sep 2008 | 12:42 am

After The Close - Wednesday

LEHMAN BROS. (LEH) rose on a report that Tokyo Mitsubishi UFJ, a Japanese bank, is interested in buying a large stake.
Source: Investor's Business Daily: BUSINESS | 4 Sep 2008 | 12:42 am

Trends & Innovations - Wednesday

Wireless tech takes to the road
Source: Investor's Business Daily: BUSINESS | 4 Sep 2008 | 12:42 am

Banking reforms 'will undermine UK law'

Senior lawyers are warning that planned reform of the rules governing banks will jeopardise Britain's financial industry and "undermine the very principles of UK law".
Source: Telegraph Business | 4 Sep 2008 | 12:01 am

Charlemagne Capital profits drop 30pc on investor fears

Charlemagne Capital saw its profits fall by 30pc in the first half of this year after it was hit by a "disappointing" investment performance.
Source: Telegraph Business | 4 Sep 2008 | 12:01 am

Boston Fed president makes a gloomy forecast

The US economy is facing negative headwinds stronger than those it experienced during the recession of the early 1990s, according to one of the country's leading central bankers.
Source: Telegraph Business | 4 Sep 2008 | 12:01 am

NZX names Andrew Harmos as new chairman

Stock market operator NZX has confirmed Auckland mergers and acquisitions lawyer Andrew Harmos is its new chairman, replacing Simon Allen. Harmos is a founding partner of Auckland-based specialist corporate legal advisory firm...
Source: New Zealand Herald - Business | 4 Sep 2008 | 12:00 am

N Korea rebuilds nuclear reactor

An international effort to denuclearise the Korean peninsula has run into another obstacle after it emerged that North Korea has started reassembling its nuclear reactor
Source: FT.com - US homepage | 3 Sep 2008 | 11:42 pm

CNBC in tie-up with LinkedIn

CNBC and LinkedIn are combining their business audiences through an alliance between the financial news channel and the professional social network, which highlights the growing advertising clout of specialist online communities
Source: FT.com - US homepage | 3 Sep 2008 | 11:30 pm

EziBuy fined for false labelling

EziBuy, Australasia's largest catalogue retailer, has been fined $8500 for selling shawls as silk blend pashmina when they were not. EziBuy pleaded guilty to breaching the Fair Trading Act in the Auckland District Court yesterday. Between...
Source: New Zealand Herald - Business | 3 Sep 2008 | 11:00 pm

Mysteries of the Universe will be solved, starting next Wednesday

It is the most ambitious and expensive civilian science experiment in history, based on the biggest machine that humanity has yet built. It has sparked alarmist fears that it might create a black hole that will tear the Earth apart, and it has triggered two last-minute legal attempts to stop it. And next Wednesday, after almost two decades of planning and construction, the project in question will finally get under way.
Source: Latest Business News from Times Online | 3 Sep 2008 | 11:00 pm

National City offers cash to cut equity lines

National City, the US bank that has been among the hardest hit by the subprime crisis, is trying to reduce its exposure to the riskiest category of home loans by offering customers cash to close their untapped home equity lines
Source: FT.com - US homepage | 3 Sep 2008 | 10:37 pm

Rising costs erode oil industry's profits

Oil companies' profitability fell to 19 per cent last year as rising costs eroded gains from the rise in oil prices, according to an industry study from IHS Herold and Harrison Lovegrove
Source: FT.com - US homepage | 3 Sep 2008 | 10:36 pm

Google sees new browser as defensive move

Google launched its web browser in part to stop its rival, Microsoft, from "Balkanising" the internet by carving it up in ways that favoured its own services, the internet company's chief executive officer said
Source: FT.com - US homepage | 3 Sep 2008 | 10:36 pm

NZ Shares: Market edges higher early

The New Zealand sharemarket edged higher in early trading, with investors around the world rattled at signs of increasingly sluggish growth in the United States and elsewhere. Around 10.10am the benchmark NZSX-50 index was up 2.41...
Source: New Zealand Herald - Business | 3 Sep 2008 | 10:33 pm

US to challenge China over steel prices

US trade officials are close to filing a case against China at the World Trade Organisation challenging export restrictions on raw materials used in steel-making and other industries
Source: FT.com - US homepage | 3 Sep 2008 | 10:27 pm

Carmakers' August sales drop, but some hope seen (Reuters)

Reuters - Detroit automakers' sales declined by 20 percent to 34 percent in August, but aggressive discounts and lower gas prices helped the battered industry do better than many Wall Street analysts had feared.

Source: Yahoo! News: Business | 3 Sep 2008 | 10:16 pm

Skills shortage the biggest concern

Even with an economic slowdown and a softening labour market, skill shortages remain the number one concern of businesses going into the election, a Business New Zealand survey has found. Outlining the results of the survey of...
Source: New Zealand Herald - Business | 3 Sep 2008 | 10:00 pm

Energy ETFs Continue Their Pullback (Daily ETF Wrap-Up)

For the second straight trading session, investors sell off energy ETFs.

Source: SmartMoney.com | 3 Sep 2008 | 9:43 pm

8 Stocks an M&A Specialist Would Love (Stock Screen)

We found eight stocks that'll appeal to fans of takeover-worthy companies.

Source: SmartMoney.com | 3 Sep 2008 | 9:31 pm

K.B.R. Bribery Plea

Albert "Jack" Stanley, the former director of global services for Kellogg Brown & Root pleaded guilty Wednesday to having paid bribes to Nigerian government officials for more than a decade, including while the construction and engineering firm was owned by Halliburton.

Stanley, who was fired when the bribery allegations surfaced in 2004, has agreed to cooperate with prosecutors still investigating how many people were involved in the conspiracy. Vice President Dick Cheney was C.E.O. of Halliburton from 1995 to 2000; the company acquired Kellogg Brown & Root in 1998.

Halliburton, which is based in Houston, said late Wednesday that it "has not yet reviewed the plea agreement, so it would be premature to comment."

Stanley, 65, made his plea before U.S. District Judge Keith B. Ellison of Houston. Neither the plea agreement nor the Department of Justice press release mention Halliburton or Kellogg Brown & Root by name.

But a separate, parallel civil complaint and press release from the Securities and Exchange Commission do name the company.

In his plea agreement, Stanley has admitted to participating in a conspiracy to bribe Nigerian officials to win $6 billion in contracts to build a liquefied natural-gas plant on Bonny Island in the oil-rich Niger River Delta region of Nigeria.

Kellogg Brown & Root was part of a consortium of Western companies seeking to build the plant, according to court records. Stanley was K.B.R.'s senior representative on the consortium's steering committee.

In that role, Stanley and others met with high-ranking Nigerian government officials on at least four occasions to arrange the bribe payments, the S.E.C. says.

Stanley and the others funneled money to Nigerian officials by using sham contracts with two "agents," whom the consortium paid more than $180 million over several years. Some of that money—U.S. investigators described them only as "substantial payments"—was sent to corrupt Nigerian government officials.

For his role in the scheme, Stanley admitted that he received about $10.8 million in kickbacks, which were paid to a dummy company in Panama or to a numbered Swiss bank account. As part of his plea deal, Stanley has agreed to surrender that amount to prosecutors, though it is unclear how much he still controls.

Separately from the Nigerian investigation, critics have blasted K.B.R. for having received billions of dollars' worth of Pentagon contracts to feed, house, and supply U.S. troops in Iraq.

Many of those contracts were awarded without competitive bidding, and several have resulted in allegations of overcharging, poor management, and corruption. At one point, for example, K.B.R. billed the government more than $27.5 million to truck $82,100 worth of liquefied petroleum gas from Kuwait to neighboring Iraq.

The Defense Contract Audit Agency, which later dismissed that bill as "illogical," has repeatedly criticized K.B.R.'s billing system.

In some cases, K.B.R. employees took it upon themselves to steal supplies intended for U.S. troops or accept bribes to let others steal them.

At a Congressional hearing in July, a former Army contracting officer said that the Pentagon's oversight of K.B.R.'s work in Iraq and Afghanistan was "irregular and highly out of the ordinary." Related Links
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Source: Portfolio.com: Top 5 | 3 Sep 2008 | 9:30 pm

8 Cheap Stocks With Price Momentum (Stock Screen)

We found eight modestly priced stocks that could pay off quickly.

Source: SmartMoney.com | 3 Sep 2008 | 9:11 pm

Ospraie's Anderson forced to shut flagship (Reuters)

Reuters - In the world of palladium, gold and soy beans, hedge-fund manager Dwight Anderson was known as an imposing figure with an appetite for risk.

Source: Yahoo! News: Business | 3 Sep 2008 | 9:06 pm

Five College Money Scams (Rip-Off of the Week)

Looking for scholarships or loans to pay for college bills? Don't fall for these cons.

Source: SmartMoney.com | 3 Sep 2008 | 9:01 pm

August retail sales expected to show weakness (Reuters)

Reuters - Major U.S. retailers are expected to post softer August sales as consumers spent less on back-to-school items, with the results helping to set analysts' expectations for the all-important holiday season.

Source: Yahoo! News: Business | 3 Sep 2008 | 8:58 pm

Global growth worries rattle Wall St.; Dow rises (Reuters)

Reuters - The S&P 500 and the Nasdaq fell on Wednesday as signs of increasingly sluggish growth in the United States and the rest of the world rattled investors already unsettled about the outlook for consumer spending and corporate profits.

Source: Yahoo! News: Business | 3 Sep 2008 | 8:43 pm

Ex-Credit Suisse brokers accused in fraud scheme (Reuters)

Reuters - Two former Credit Suisse brokers were charged on Wednesday with fraud and conspiracy over deceptive sales of subprime-related auction-rate debt, government officials said, part of an industrywide probe of the securities.

Source: Yahoo! News: Business | 3 Sep 2008 | 8:42 pm

Fed, Data Leave Stocks Mixed

Another subpar Beige Book and weakness in auto sales left traders listless. Oil prices took another dip.

Source: SmartMoney.com | 3 Sep 2008 | 8:31 pm

Coke seeks Chinese juice company

Coca-Cola is offering almost $2.4 billion for the Huiyuan juice company in China. The all-cash deal would be the biggest foreign takeover ever of a Chinese company. But regulators in Beijing could take the fizz out of the deal. Janet Babin reports.
Source: Marketplace | 3 Sep 2008 | 8:10 pm

Mortgage crisis fallout: Homeless kids

With many communities hit hard by foreclosures, schools are reporting spikes in the number of homeless students this fall. Mhari Saito reports on how those districts -- and their students -- are coping.
Source: Marketplace | 3 Sep 2008 | 8:10 pm

Looking inside the 'Suprime Solution'

Yale economist Robert Shiller's been watching the real estate market for a long time. He's the author of a new book called "The Subprime Solution." Since that would be a pretty popular thing right now, Kai Ryssdal asked him to explain it.
Source: Marketplace | 3 Sep 2008 | 8:10 pm

GOP needs to get real on immigration

While the GOP convention is on, we've asked some Republican thinkers to tell us where they think the party can do better. Commentator David Frum says it ought to start with immigration.
Source: Marketplace | 3 Sep 2008 | 8:09 pm

Abu Dhabi fund goes Hollywood

A branch of one of the world's largest sovereign wealth funds -- the Abu Dhabi fund -- plans to spend $1 billion over five years to produce and distribute feature films in Hollywood. Ali Jafar of Variety discusses the details with Kai Ryssdal.
Source: Marketplace | 3 Sep 2008 | 8:09 pm

Army launches attack on fashion biz

After decades of seeing its designs turned into fashion statements, the U.S. Army has decided to partner with Sears to launch an Army-inspired clothing line. Ashley Milne-Tyte reports.
Source: Marketplace | 3 Sep 2008 | 8:09 pm

Commodities markets hit investors hard

Prices for commodities have been dropping, so it's a tricky time for companies that run those kinds of investments. One of the larger hedge-fund managers says it's closing down a flagship commodities fund that's gone very bad. Amy Scott reports.
Source: Marketplace | 3 Sep 2008 | 8:09 pm

Blog: Mixed picture in the West

Source: L.A. Times - Business | 3 Sep 2008 | 7:50 pm

Oracle's chief withheld emails, judge rules

Larry Ellison, the chief executive of Oracle, the US software group, deliberately destroyed or withheld emails and did not preserve tape recordings that he should have handed over to lawyers acting for investors that are suing him, a judge has ruled.
Source: Latest Business News from Times Online | 3 Sep 2008 | 7:41 pm

Failure to Communicate

Wireless giant AT&T suffered an embarrassing service outage Wednesday, causing iPhone users and others across the country to lose their data service for more than 12 hours.

Some disgruntled users blamed AT&T and Apple for overselling the iPhone—and thus overtaxing the service provider's 3G wireless network. The companies have sold 8 million iPhones to date; they run exclusively on AT&T's network.

In a statement, AT&T said: "There was a routing issue affecting some wireless data use in the Northeast region. AT&T technicians determined the cause and restored service at 11:56 a.m. EDT. Voice calling, text messaging, and BlackBerry email were unaffected."

If true, that would be good news for BlackBerry, which suffered some bad publicity during its own service outages in 2007 and again earlier this year.

But reports from across the country seemed to suggest that the AT&T statement was not wholly accurate. Users as far west as California—not just in the Northeast—complained of service troubles, as did some BlackBerry users running on AT&T network.

The outage affected AT&T's 3G and EDGE networks starting around 1:30 a.m., infuriating users, some of whom have been able to get $20-$30 service credits from the company.

For iPhone users, the service outage was just the latest problem to have plagued the popular phone. Many users have complained about spotty reception, and last month Apple was slapped with a lawsuit by an Alabama woman who claimed the company falsely marketed the device as "twice as fast at half the price."

On Wednesday, reports of a second iPhone lawsuit emerged—this time against AT&T as well as Apple—accusing the companies of having sold more units than the network can accommodate.Related Links
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Source: Portfolio.com: Top 5 | 3 Sep 2008 | 7:30 pm

Which Cars Qualify for Generous Alternative Fuel Credit? (The Tax Guy)

Here's a list of which vehicles still qualify for the juicy tax credit of up to $3,000.

Source: SmartMoney.com | 3 Sep 2008 | 7:18 pm

10 Things Millionaires Won't Tell You (10 Things)

They might drive fancy cars, but they also hunt for discounts and worry about retirement.

Source: SmartMoney.com | 3 Sep 2008 | 7:09 pm

A C-Double Win

It's baaaaack.

No, we're not talking about 90210, the reimagined version of classic teen soap Beverly Hills, 90210, which had its series premiere on the CW last night. We're talking about the network itself, which seems to have been revived from near-death by the success of its two most recent series premieres.

In fact, against all odds, fall is off to a very strong start for the CW, the teen-oriented network from CBS and Warner Bros.
    
On Labor Day evening, the season two premiere of Gossip Girl scored 3.4 million viewers, the series' second-highest audience ever and one that, combined with strong ratings for the sixth season of teen drama One Tree Hill, helped carry the CW's best Monday night in the two years since it was founded.

And Tuesday night, the series premiere of 90210 did the network even prouder. In three categories—women 18 to 34, the CW's sweet spot; adults 18 to 34; and adults 18 to 49—the two-hour special was the highest-rated telecast of any CW scripted series, ever. It was also the highest-rated premiere of a scripted series in those three categories, all according to a press release issued by the network.

That's a big relief for the CW, which had been banking on big ratings for the show after an extensive marketing campaign. That campaign took a page from Gossip Girl's playbook, relying on racy billboard and print ads that featured the show's cast lounging in barely there swimwear, and that outraged bystanders including an Orthodox Jewish community in Brooklyn.

Despite—or perhaps because of—that scandal, and thanks in part to a heavy dose of nostalgia for its predecessor, 90210 attracted droves of viewers. The show drew an average audience of 4.9 million for the two-hour telecast—even more than Gossip Girl the night before—and the 4.3 rating among women 18 to 34, the 3.0 among adults 18 to 34 and the 2.6 among adults 18 to 49 were all sufficient to break records for the fledgling network.

The question now is, can 90210—and Gossip Girl and the creaky One Tree Hill, for that matter—keep on delivering? Unkind reviews for 90210's debut episode weren't hard to find. "At this point, adding Tori Spelling to the mix would have a calming effect," concluded Variety.

But numbers from the network proved that audiences disagreed. Total viewers increased 9 percent between 90210’s first and second hours, which bodes well for next week's second episode, and for the series in general.

The CW's future had looked precarious only last week, as the network's third broadcast season approached without a bona fide ratings hit on the schedule.

While audiences of 3.4 million (for Gossip Girl) and 4.9 million (for 90210) aren't exactly American Idol territory, they still represent great strides for a network whose buzziest show only averaged between 2 million and 3 million viewers in its first season.

That upward trajectory is one that the network no doubt hopes it can maintain. But do these shows represent full-fledged successes for the CW, or are they just temporary reprieves on the path to irrelevance?
 
"It's too early to tell," says Courtney Burke, senior vice president and director of network buying at Deutsch, a full-service advertising agency in New York. "The amount of promotion they put behind Gossip Girl and 90210—no one could walk through Manhattan over the past few months and not know about those two shows."
 
Because of that, she says, the level of fall-off the shows sustain over the next few weeks will be extremely telling. "They've definitely succeeded with Monday and Tuesday of this week, and we're all interested to see what happens next."
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Source: Portfolio.com: Top 5 | 3 Sep 2008 | 7:00 pm

Preventing Airline Cutbacks from Ruining Your Trip (Deal of the Day)

Airlines are cutting routes and the number of planes in the air. Here's how to cope.

Source: SmartMoney.com | 3 Sep 2008 | 6:48 pm

3 Stocks to Watch: GLW, CAG, MDVN (Market Movers)

Corning's glass is half-empty. ConAgra warns. Medivation partners up with Pfizer.

Source: SmartMoney.com | 3 Sep 2008 | 6:30 pm

US car sales skid as slump persists

Ford Motor saw US sales fall 26.5 per cent in August, emphasising that America’s slump in car sales may not have bottomed out.
Source: Latest Business News from Times Online | 3 Sep 2008 | 5:55 pm

Ex-Credit Suisse brokers accused of subprime fraud

Two former Credit Suisse brokers each face a $5 million fine and up to 20 years in jail after being charged with fraudulently selling complex US securities to clients in order to boost their commissions.$
Source: Latest Business News from Times Online | 3 Sep 2008 | 5:36 pm

GMAC to cut 5,000 jobs at ResCap mortgage unit (Reuters)

Reuters - GMAC LLC said on Wednesday it plans to cut 5,000 jobs at its Residential Capital LLC mortgage unit, or 60 percent of that work force, and shut its 200 GMAC Mortgage retail offices to combat persistently weak housing and credit markets.

Source: Yahoo! News: Business | 3 Sep 2008 | 5:07 pm

EBay seller from SoCal gets feedback from 1 million

Source: L.A. Times - Business | 3 Sep 2008 | 5:06 pm

Brokers Fall on Their A.R.S.

We knew we'd see some heads roll in the aftermath of the auction rate securities mess, but we never imagined it would play out quite like this.

Two former brokers for Credit Suisse in New York have been indicted by the U.S. Attorney's office in Brooklyn on fraud and conspiracy charges in connection with the sale of auction rate securities to their corporate clients. The Securities and Exchange Commission has also filed civil charges against the two.

Like in so many broker fraud cases, greed is at the center of this one. According to the S.E.C.'s complaint, Julian Tzolov and Eric Butler made more than $1 billion of unauthorized purchases of the securities in their corporate client accounts over a two-and-a-half-year period. Auction rate securities are long-term bonds backed by loans that reset at auctions every week or month.

The pair allegedly bought bonds backed by debt such as subprime mortgages, collateralized debt obligations, and mobile-home contracts. The complaint says the brokers would then pass off the securities as bonds backed by federally guaranteed student loans, which their customers had authorized them to buy on their behalf.

Not surprisingly, the riskier stuff paid higher commissions. It seems that Tzolov and Butler were as blind as so many unwitting investors left holding A.R.S. in their accounts when the auctions began failing during this middle of this credit crisis. They, too, evidently believed the securities were liquid and would continue to sell at their designated auctions indefinitely and their scam would go unnoticed.

To cover up their fraud, according to the complaint, the brokers would change the names of the securities in email confirmation to their customers. "Greenpoint Credit LLC," which was backed by loans on mobile homes, became "Greenpoint Student Assistance." "Glacier Funding C.D.O. I Ltd." became "Glacier Education Loan" securities in the trade confirmation.

According to the complaint, the brokers bought more than $1 billion worth of this stuff and sent over 50 emails to customers with misleading information about their holdings.

This all came to a screeching halt last August, when the auctions for subprime-backed A.R.S. began to fail, and their customers were left unable to sell the bonds, which were quickly losing value. According to a Credit Suisse spokesman, the two brokers resigned in September 2007 "after we detected their prohibited activity and promptly suspended them."

Of course, the rest of the A.R.S. market froze up soon after, and by February of this year virtually no one was willing to buy the bonds at auction. Investigators swept in, damaging emails were unearthed, and most Wall Street banks agreed to fork over billions of dollars to the individual investors they sold them to.

But if there's truth to the complaint, Tzolov and Butler are just two more examples of the classic, crooked broker willing to risk crushing his customers in exchange for a higher commission.  

 

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Source: Portfolio.com: Top 5 | 3 Sep 2008 | 4:00 pm

Times MPC calls for hold on interest rates

The Bank of England should keep interest rates on hold for a fifth month as inflation continues to rise and the pound tumbles, The Times Monetary Policy Committee (MPC) recommends today.
Source: Latest Business News from Times Online | 3 Sep 2008 | 3:43 pm

SocGen rogue trader sticks by accomplice claim

Jérôme Kerviel, the rogue trader, was today brought face to face with the assistant who he says helped him to cover up the illegal deals, which led to losses of €4.9 billion (£3.9 billion) at Société Générale, the French bank.
Source: Latest Business News from Times Online | 3 Sep 2008 | 3:30 pm

Mutual Fund Names Can Be Confusing (SmartMoney Magazine)

A rash of new funds are being launched with fancy -- though hardly literal -- titles.

Source: SmartMoney.com | 3 Sep 2008 | 3:17 pm

Fears for 500 jobs as Pearl closes offices

Pearl Group, the life assurance group controlled by Hugh Osmond, the entrepreneur, is to take the axe to hundreds of its 1,800-strong workforce in two of its three UK offices. Unions fear up to 500 jobs will go.
Source: Latest Business News from Times Online | 3 Sep 2008 | 2:03 pm

Crash Landing

Another one bites the dust.

The Ospraie Fund, a commodities hedge fund that was worth $2.8 billion at the start of August, is winding down after suffering a brutal blow during the month. According to a letter to investors from Ospraie's founder Dwight Anderson, the fund lost 26.7 percent during August, bringing it to a 38.6 percent loss year-to-date.

"The losses were primarily caused by a substantial sell-off in a number of our energy, mining, and resource equity holdings during a six-week period characterized by some of the sharpest declines in these sectors in the past 10 to 20 years," Anderson wrote to investors.

Anderson, 41, got his start in the business working under Julian Robertson at Tiger Management. In 1999, he moved to John Paul Tudor's hedge fund firm, where he started managing his own fund; in 2004 he spun out Ospraie Management as an independent firm. Anderson didn't have a losing year until 2006, when his flagship fund lost 19 percent in the first five months of the year. It took another hit in mid-2007 as the credit markets began to freeze.

While this fund's closing will be a blow to all of its investors, it comes at an especially bad time for Lehman Brothers, which took a 20 percent stake in Ospraie Management in 2005. One of the ways Lehman has recently tried to raise capital is by seeking a buyer for its asset management business, which would include its stakes in hedge funds as well as its Neuberger Berman unit.  

So far, no one has stepped forward with an offer, however. And this news certainly won't help Lehman's negotiations on that front, although Lehman also has a 20 percent stake in D.E. Shaw, which is doing exceptionally well during this credit crisis.

The demise of the Ospraie Fund, which was named as an "eclectic spelling of osprey" according to a Bloomberg profile on the firm last year, underscores the extreme volatility in today's commodities markets.  

According to the Bloomberg article from last year, the Ospraie Fund makes long and short investments in commodities such as oil, copper, and corn. It also trades shares of companies in the energy, mining, and agriculture industries. August was a tumultuous month for commodities in general, as their prices plummeted after soaring since the beginning of this year.


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Source: Portfolio.com: Top 5 | 3 Sep 2008 | 1:30 pm

M&S sacks redundancy plan 'whistleblower'

A worker at Marks & Spencer (M&S), suspended for "blowing the whistle" on the high street retailer's plans to slash its redundancy pay, has been sacked for gross misconduct.
Source: Latest Business News from Times Online | 3 Sep 2008 | 12:03 pm

Mortgage rate retreats to pre-crunch low

The price of an average two-year fixed-rate mortgage has fallen to its lowest level since the credit crunch accelerated last year, suggesting conditions in some areas of the market may be easing.
Source: Latest Business News from Times Online | 3 Sep 2008 | 11:42 am

Coke's Big Gulp in China

The Beijing Olympics are over, but Coca-Cola, one of the official sponsors of the 2008 games, is trying to grab some gold.

The world's biggest soda company is offering about $2.4 billion in cash for China Huiyuan Juice Group. It would be the biggest foreign acquisition of a Chinese company every, says Thomson Reuters. While dealmaking has been steadily rising in China, most foreign investment has been in the form of minority stakes.

Coke will be paying a rich price: 12.20 Hong Kong dollars per share, three times its price on Friday and more than double its February 2007 initial public offering price. The offer equals 43 times Huiyuan's estimated earnings this year.

But an acquisition would greatly expand Coke's presence in China and give it its first production plant in the country. Coke has been diversifying into water and juice—its largest acquisition to date has been the $4 billion deal for the parent of VitaminWater—and getting Huiyuan would make it the leader in China's juice market, which has been growing rapidly as the Chinese middle class expands.

"Huiyuan is a long-established and successful juice brand in China and is highly complementary to the Coca-Cola China business," said Muhtar Kent, Coke's chief executive.

Coke has been in China since 1979. The economy has been transformed, opened, and on a red-hot growth spurt since. But strong growth has not necessarily meant strong profits in beverages.

"There's not a whole lot of profit growth for them in their existing soft-drink market," Arthur Kroeber, managing director of the Beijing-based economics research firm Dragonomics told Agence France-Presse. "You have huge volumes, but your margins are always microscopic, so you need to look at how you can diversify into new products lines."

Government regulators still need to bless the acquisition.

Other winners in the deal would include Danone of France and the American private equity firm Warburg Pincus, which were part of a consortium that took a 35 percent stake in Huiyuan for just $223 million two years ago.

Now that's an investment worth raising a glass to.




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Source: Portfolio.com: Top 5 | 3 Sep 2008 | 11:30 am