Altria pays $10bn for chewing tobacco group$

Altria seized control of the biggest chewing tobacco company in the United States yesterday for $10.4 billion ($£6 billion) in cash, raising hopes that while Wall Street may be in the middle of a credit crisis, corporate America is bearing up.
Source: Latest Business News from Times Online | 9 Sep 2008 | 5:15 pm

First-time buyers suffer as deposits climb

First-time buyers now have to put down the largest deposit since the early 1980s in order to join the property ladder, new figures have revealed.
Source: Telegraph Business | 9 Sep 2008 | 11:50 am

Vodafone boss shakes up top jobs

Vodafone's new chief executive Vittorio Colao has instigated a huge management shakeup that will see the next most senior executive depart at the end of the year.
Source: Telegraph Business | 9 Sep 2008 | 11:25 am

McCain and Obama differ on mortgage crisis

Important differences have begun to emerge between Barack Obama and John McCain on tackling the crisis at Fannie Mae and Freddie Mac
Source: FT.com - US homepage | 9 Sep 2008 | 11:18 am

Global economy faces tough test, says IMF's Lipsky

FRANKFURT (Reuters) - The global economy faces its most difficult test in many years with growth slowing sharply as high commodity prices put pressure on inflation, a senior International Monetary Fund official said on Tuesday.

Source: Reuters: Business News | 9 Sep 2008 | 11:16 am

Europe Markets: Banks help shares in Europe build on previous session's gains

European shares edge higher on Tuesday, with financials helping indexes to build on the previous session’s rally.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 11:15 am

Movers & Shakers: Tuesday's biggest gaining and declining stocks

Stocks expected to move actively in trading on Tuesday include the U.S. home builders as well as Avery Dennison, H.B. Fuller, K12, Pfizer, and P&G.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 11:11 am

Thai PM forced out over TV chef role

A Thai court has ruled that Prime Minister Samak Sundaravej must resign because he violated the constitution by hosting TV cooking shows while in office
Source: FT.com - US homepage | 9 Sep 2008 | 11:09 am

Stocks poised for a higher start

Stocks were poised to move higher at Tuesday's open, following through on a strong rally and a fall in oil prices.

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 11:07 am

BG Group drops Origin bid (AP)

AP - British natural gas producer BG Group PLC abandoned its hostile takeover bid for Origin Energy Ltd., Australia's second-largest power retailer, on Monday.
Source: Yahoo! News: Business | 9 Sep 2008 | 11:02 am

Dollar near one-year high vs. euro

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 11:00 am

Gas prices: Down 11% from July high

Gasoline prices fell yet again, according to a nationwide survey of gas station credit card swipes. The decline comes as focus turns toward Hurrican Ike -- expected to hit the central to southern coast of Texas by the end of the week.

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 10:52 am

Vodafone shifts organization, appoints new Europe head

In his first major decision since he took over the helm of British mobile-phone giant Vodafone Group in August, chief executive Vittorio Colao choses an outsider to run the Europe business and breaks up emerging markets into two divisions.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 10:49 am

Currencies: Dollar loses ground after post-bailout rally

The dollar trades mostly lower as investors take profits following a sharp rally in response to the U.S. government’s massive bailout of Fannie Mae and Freddie Mac.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 10:33 am

99 Cents Only Stores raises prices for first time... to 99.99 cents

99 Cents Only Stores, the US discount chain, has narrowly escaped an expensive rebranding after increasing its prices just shy of $1 in order to offset soaring costs.
Source: Telegraph Business | 9 Sep 2008 | 10:32 am

Home sales at lowest for 30 years

The slump in the UK property market continued in August, with some estate agents now selling fewer than one home per week.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 10:31 am

Investors sue ex-Fannie Mae execs

Four former senior executives at US lender Fannie Mae have been sued by investors in the mortgage firm
Source: BBC News | Business | World Edition | 9 Sep 2008 | 10:30 am

High street washout leads to retail slump

Retail sales fell for the third consecutive months in August, as wet weather kept shoppers away from the high street, according to new figures from the British Retail Consortium (BRC).
Source: Latest Business News from Times Online | 9 Sep 2008 | 10:29 am

U.S. hires lawyer for Google/Yahoo inquiry

NEW YORK (Reuters) - The U.S. Justice Department has hired Sandy Litvack, who was its former antitrust chief and Walt Disney Co's former vice chairman, to consult on its probe of Google Inc's search advertising deal with Yahoo, a source close to the investigation said.

Source: Reuters: Business News | 9 Sep 2008 | 10:28 am

United Airlines dives on old news

United Airlines shares nosedive after an old news story about its 2002 bankruptcy battle resurfaces.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 10:28 am

Microsoft (MSFT): Kill The Zune

Microsoft (MSFT) is about to launch its latest version of the Zune multimedia player. To date the company has sold two million units. In contrast, Apple (AAPL) has sold over 150 million iPods.

Microsoft has a chance to kill the Zune with a good excuse. By cutting prices on its Xbox 360 last week, it is putting pressure on the margins of its "devices" division.

In its last fiscal year, Microsoft made a little more than $400 million on revenue of $8.1 billion in the part of the company that makes and markets hardware. Those numbers seem OK, but in the two previous years the unit lost $2.5 billion. Wall St. hates the business almost as much as it hates Microsoft's MSN online operation. Investors want the company out of areas where it looses money and has few prospects for improvement.

The Xbox 360 price cut is a sensible risk. If dropping the cost of the product picks up market share from Sony and Nintendo, the move has the benefit of moving Microsoft further along in an area where it is doing well.

The Zune is another matter. Apple's lead is too large. The Zune is not a product which is terribly different from its competition.

Microsoft can simply say it does not want to take a bath on the Zune while it is taking a more intelligent risk with Xbox profitability.

Kill the Zune. Save some money.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Sep 2008 | 10:21 am

Bayer shares gain on talk of Pfizer interest (Reuters)

Reuters - Shares in German drugs and chemicals group Bayer rose nearly 4 percent on Tuesday on market talk of takeover interest from U.S. rival Pfizer, traders said.

Source: Yahoo! News: Business | 9 Sep 2008 | 10:21 am

Bayer shares gain on talk of Pfizer interest

FRANKFURT (Reuters) - Shares in German drugs and chemicals group Bayer rose nearly 4 percent on Tuesday on market talk of takeover interest from U.S. rival Pfizer, traders said.

Source: Reuters: Business News | 9 Sep 2008 | 10:20 am

Stock futures point to further gains on Wall Street

(Reuters) - Stock index futures pointed to a higher opening on Wall Street on Tuesday, adding to the previous session's sharp gains in the wake of the bailout of troubled mortgage firms Fannie Mae and Freddie Mac and as a drop in oil prices eases worries over inflation and corporate costs.

Source: Reuters: Business News | 9 Sep 2008 | 10:15 am

Outside the Box: The economic bill comes due for Iran's Ahmadinejad

History is presenting Iran's president with the bill for the Islamist Revolution's three decades of economic populism.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 10:13 am

Eosta to Introduce Climate-Neutral Kiwis From New Zealand

WADDINXVEEN, The Netherlands, September 9 /PRNewswire/ -- In response to consumer concern over global warming, Eosta has launched its climate-neutral product line earlier
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 10:12 am

Not a quick housing fix

The federal government's takeover of Fannie Mae and Freddie Mac may save the battered real estate market from a complete meltdown. But financial experts say the bailout won't lead to a housing recovery just yet.

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 10:07 am

OPEC To Sit Out The Inning

Saudi Arabia carries the big lumber at OPEC meetings. It is the largest oil producer in the cartel. Its government is one of the most stable, especially when contrasted to nations such as Venezuela.

At the current meeting of OPEC members Saudi Arabia's Oil Minister Ali al- Naimi said the crude market is ``well balanced'' and inventories are in a ``healthy position,'' according to a report from Bloomberg.

OPEC is going to keep supplies where they are. It is a calculated gamble that prices will go higher without producing nations taking the blame.

OPEC has every reason to believe that events will continue to fill its bank accounts.

Russian tensions with the West are still growing. Venezuela is encouraging Putin & Co. to conduct joint naval maneuvers. Those would go one only a few hundred miles south of the US territorial waters. Russia in not beyond using crude as a tool to vex economies in the US and EU. Neither is the Chavez regime in Venezuela

The Farmer's Almanac says that this will be an especially cold winter.It may not be a reliable gauge, but a chilly period across the Northern Hemisphere will almost certainly suck down reserves.

Hurricane Ike looks like it may disrupt production in the Gulf of Mexico. If it does not, the storm season is not over. If more tropical depressions are thrown at that fairly small area with so many refineries and drilling platforms, one of them could hit the bull's eye.

Perhaps the most important element of the oil consumption puzzle is that there is no concrete evidence that China and India have curtailed their thirst. While the average US citizen may be riding a bicycle, China still needs tens of thousand of trucks to move export goods from the central part of the country to ports.

OPEC can do nothing, look good, and still profit. Clean hands and a clear conscience.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Sep 2008 | 10:06 am

Best place to retire - on the water

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 10:02 am

Ultimate retirement guide - 383 answers

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 10:01 am

SectorWatch.biz Issues MarketStats on Agri-Biotech Equities YGYB, GRO, SEED, MON, ADM, and BG

IRVINE, Calif., Sept. 9 /PRNewswire/ -- SectorWatch.biz announces the availability of MarketStats for agri-biotech equities in the news and driving markets today....
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 10:00 am

Westlake Chemical Expands and Extends Revolving Credit Facility

HOUSTON, Sept. 9 /PRNewswire-FirstCall/ -- Westlake Chemical Corporation (NYSE: WLK) announced today that it has completed an amendment to increase the company's...
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 10:00 am

Fraport Officially Commences Operations at China's Xi'an Airport

FRANKFURT, Germany, September 9 /PRNewswire-FirstCall/ -- Fraport AG's executive board chairman Dr. Wilhelm Bender took part in the official celebrations in...
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 10:00 am

Video: Annual Coldwell Banker Home Price Comparison Index Finds $1.7 Million Difference Between Nation's Most Expensive and Affordable Housing Markets

La Jolla, Calif. vs. Sioux City, Iowa: Waterfront Living Differs for Cities on Pacific Ocean and Missouri River Annual Report of 398 Markets Includes 83 from Outside U.S.; Dubai...
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 10:00 am

Grand Toys Announces Intent to Sell Assets of IPI Subsidiary

HONG KONG, Sept. 9 /PRNewswire-FirstCall/ -- Grand Toys International Limited (OTC: GRINY.PK) (the "Company") today announced the signing of a term sheet to...
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 10:00 am

Manufacturing fall heightens recession fears

British manufacturing output shrank for the fifth month in a row in July, the longest decline in seven years, highlighting fears that the economy is heading into a full-blown slowdown.
Source: Latest Business News from Times Online | 9 Sep 2008 | 9:58 am

Asian stocks retreat as credit woes grind on

Financial stocks led a broad retreat in Asia-Pacific equities on Tuesday as investors took profits from Monday's rally following the US government's decision to take control of mortgage giants Fannie Mae...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 9:58 am

Oil nears $100 a barrel ahead of Opec meeting$

Oil prices slumped closer to $100 a barrel this morning ahead of the start of today's Opec meeing in Vienna, putting more pressure on the oil producers' cartel to cut supply to the markets.$
Source: Latest Business News from Times Online | 9 Sep 2008 | 9:55 am

The Bear Market's Big Sucker Rally (MSFT)(BA)(GE)(F)(FNM)(FRE)(WM)(LEH)

In community college Economics 101 students learn that there can be dips in bull markets. Usually these are caused by a single event like a change in the party that runs Congress. The same holds true for bear markets. Suckers jump in on one piece of news or another. The market spikes up. A week later, it's gone.

The Fannie Mae (FNM) and Freddie Mac (FRE) rescue pushed the market higher and may do so for a few days. In Asia, they know better. The rally never made it beyond the first 24 hours. Markets turned down in Day Two.

The overwhelming evidence is that almost no one benefited from the government taking over the agencies. The rest of the economy is in the toilet. A lot of data has come out in the last day underscoring that point.

The well-regarded Manpower Employment Outlook Survey's look at corporate hiring plans found that a net 9% of firms expect to hire in the fourth quarter, down from 12% in the previous quarter, and 18% for the fourth quarter a year ago. According to MarketWatch, this is the longest string of quarterly declines in two decades.

A quick glance over at the Forrester study of IT spending found that 43% of companies have cut IT spending this year. How can companies like Oracle (ORCL), Microsoft (MSFT), and IBM (IBM) have strong earnings into next year with that kind of trend?

A Bloomberg News survey of 39 economists showed that they believe pending US home sales dropped again in July.

All three pieces of data are less than 24 hours old.

The market really did not rally. A few stocks did. GE (GE) sits at $29, still relatively near multi-year lows. Boeing (BA) faces a strike which could go on for months. That will hurt earnings and employment at scores of its suppliers. Boeing's shares could clearly drop. Ford (F) is barely off a 20-year low. The same could be said of Microsoft (MSFT).

If the stock prices of Washington Mutual (WM) and Lehman (LEH) tell any tale it is that they will have to be rescued or cease to exist as independent companies.

Most of the seminal stocks in key industries are still well down and have little prospect of recovery.

If a recession is defined by the breadth of its damage, this is already a powerful one.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Sep 2008 | 9:45 am

Swiss Re has no further exposure to subprime risks: CEO

The world's largest reinsurer, Swiss Re, is out of danger from major exposure to the subprime mortgage crisis, the group's chief executive Jacques Aigrain said in remarks published Tuesday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 9:39 am

XFL (TSE: 9399) Announces Completion of its Tender Offer for up to US$49,113,000.00 Aggregate Principal Amount of its Outstanding Senior Guaranteed Notes Due 2011

SHANGHAI, China, Sept. 9 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance Limited ("XFL" or the "Company", TSE Mothers: 9399; OTC: XHFNY), China's
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 9:35 am

Qinetis shares fall as government unveils plan to sell stake

Shares of Qinetiq Group fall nearly 9% Tuesday after the U.K. government says it plans to sell its 18.9% stake in the defense-research company.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 9:33 am

Green Giant(R) is Growing! The Famous Brand Icon Gets Bigger With New Packaging

Green Giant(R) Rated Number 1 Icon of 20th Century - Recognized by 96 Percent of Consumers MINNEAPOLIS, Sept. 9 /PRNewswire/ -- The famous Green Giant(R) is getting ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 9:30 am

Oil prices fall to five-month lows before OPEC meet

Oil prices slumped to 102 dollars a barrel on Tuesday, the lowest level since the start of April, as the market waited to see whether OPEC would announce a change to its crude output...
Source: Infocious RSS raw feed - channel BNewsBusiness | 9 Sep 2008 | 9:29 am

KDB mum on Lehman deal, eyes top 3 Asia spot

SEOUL (Reuters) - State-owned Korea Development Bank (KDB) on Tuesday kept mum on its talks with Lehman Brothers over a possible investment, but said it was aiming to be a top three investment bank in Asia within the next five years.

Source: Reuters: Business News | 9 Sep 2008 | 9:28 am

Indications: U.S. stock futures point to further gains

U.S. stock futures pointed Tuesday to an extension of gains on the heels of the Fannie Mae and Freddie Mac rescue, with data on pending home sales and a brokerage downgrade of several builders a reminder of the root cause of the government’s action.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 9:28 am

Manufacturing output falls again

UK manufacturing output declined for a fifth straight month in July, underscoring the weak state of the UK economy.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 9:16 am

U.S. court revives cases against Enron executives

(Reuters) - A ruling in the federal appeals court in New Orleans on Monday revived Texas state court fraud cases targeting Enron Corp's former leaders and more than a dozen financial institutions accused of playing a role in the company's collapse, legal documents showed.

Source: Reuters: Business News | 9 Sep 2008 | 9:11 am

Fannie, Freddie need restructuring to limit risks: IMF (Reuters)

Reuters - The U.S. government's move to take control of Fannie Mae and Freddie Mac will help shore up the housing market, the banking system and the wider economy, a senior International Monetary Fund official said on Tuesday.

Source: Yahoo! News: Business | 9 Sep 2008 | 9:05 am

Fannie, Freddie need restructuring to limit risks: IMF

FRANKFURT (Reuters) - The U.S. government's move to take control of Fannie Mae and Freddie Mac will help shore up the housing market, the banking system and the wider economy, a senior International Monetary Fund official said on Tuesday.

Source: Reuters: Business News | 9 Sep 2008 | 9:05 am

Boeing supplier cuts production

Aerospace firms brace themselves for potential disruption as one of Boeing's largest suppliers cuts production.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 8:58 am

London Markets: Banks help London shares to build on gains

Banks help London shares to build on gains Tuesday, with Royal Bank of Scotland and HBOS advancing strongly for the second straight session as confidence continues to return to the battered sector.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 8:54 am

U.K. retailers saw worst summer since 2005, trade group says

A stagnant economy and weak consumer confidence led to the worst summer for British retailers since 2005, the British Retail Consortium said Tuesday in its monthly report for August.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 8:44 am

KFC bolsters security - for secret recipe

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 8:42 am

Resolution recruits ex-FSA chief ahead of £1bn float

Clive Cowdery, the insurance entrepreneur, has recruited John Tiner, the former head of the Financial Services Authority (FSA) for a new consolidation company that is set to float in November for £1 billion.
Source: Latest Business News from Times Online | 9 Sep 2008 | 8:42 am

Asia Markets: Stocks reverse gains on fizzled bailout optimism

Asian markets ended mostly lower Tuesday, reversing some of the sharp gains from a day earlier, as optimism about the U.S. government’s bailout of mortgage giants Fannie Mae and Freddie Mac faded and investors considered the effects of a slowing global economy.

Source: MarketWatch.com - Top Stories | 9 Sep 2008 | 8:40 am

Financial services job market weakest since '91

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 8:38 am

UK sells remaining Qinetiq stake

The government is selling its remaining stake in UK defence research firm Qinetiq, once part of the Ministry of Defence.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 8:35 am

Google and HSBC back African Internet project (Reuters)

Reuters - Internet firm Google and Europe's biggest bank HSBC have thrown their weight behind an ambitious plan to provide cheap, high-speed Web access to 3 billion people in Africa and other emerging markets.

Source: Yahoo! News: Business | 9 Sep 2008 | 8:34 am

Google and HSBC back African Internet project

LONDON (Reuters) - Internet firm Google and Europe's biggest bank HSBC have thrown their weight behind an ambitious plan to provide cheap, high-speed Web access to 3 billion people in Africa and other emerging markets.

Source: Reuters: Business News | 9 Sep 2008 | 8:33 am

Vedanta unveils $9.8bn expansion plan

Vedanta Resources on Tuesday detailed $9.8bn investment plans aimed at making it a leading global aluminium producer. It also unveiled a simplified corporate structure, ironing out cross-holdings and conflicts...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 8:32 am

UK's BG gives up battle for Australia's Origin (Reuters)

Reuters - UK gas producer BG Group admitted defeat in its hostile bid for Australian coal-bed methane producer Origin Energy, but analysts said BG may shift its focus to another target or become a target itself.

Source: Yahoo! News: Business | 9 Sep 2008 | 8:17 am

UK's BG gives up battle for Australia's Origin

LONDON (Reuters) - UK gas producer BG Group admitted defeat in its hostile bid for Australian coal-bed methane producer Origin Energy, but analysts said BG may shift its focus to another target or become a target itself.

Source: Reuters: Business News | 9 Sep 2008 | 8:17 am

Media Digest 9/10/2008

According to Reuters, the bailout of Fannie Mae and Freddie Mac (FRE) was greeted with cautious optimism.

Reuters says the the Justice Department has hired a litigator to look into antitrust issues at Google (GOOG).

The Boeing (BA) strike is having an impact on suppliers and customers around the world, according to Reuters.

Reuters reports that Nokia (NOK) is looking for more acquisitions for its internet business.

The Wall Street Journal reports that BG Group said it will let its offer to buy Australia's Origin Energy lapse, a day after the target company agreed to sell a half share of key assets to ConocoPhillips (COP)

The Wall Street Journal reports that the CEO of Ford (F) is expecting help from the US government.

The Wall Street Journal reports that a survey of hedge funds shows 35% lost assets through August

The Wall Street Journal reports that O3b Networks plans to launch as many as 16 satellites to bring internet to hundreds of million of poor people.

The New York Times reports that the firing of the head of VMWare (VMW) is still hurting the company.

The FT says that the oil minister of Saudi Arabia cast doubt on a production cut at OPEC.

The FT reports that a new survey of companies shows 43% are cutting their rate of IT spending.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Sep 2008 | 8:05 am

FTSE 100 falls as trading resumes

The FTSE 100 opened lower this morning as traders resumed dealing after yesterday's embarrassing computer breakdown at the London Stock Exchange.
Source: Telegraph Business | 9 Sep 2008 | 8:05 am

BG admits defeat in Origin takeover battle

BG Group, the oil and gas company, on Tuesday said it would not extend or increase its A$13.8bn (US$13.3bn) offer for Origin Energy of Australia, in effect conceding defeat after Origin struck a A$9.6bn...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:57 am

Cowdery seeks 1bn Resolution listing

Resolution, the relaunched takeover vehicle of insurance entrepreneur Clive Cowdery, will seek to float in November.The company plans to raise 1bn initially and thereafter to invest a total of more than...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:48 am

BG Group scraps $11bn bid for Origin Energy$

BG Group has given up on its hostile bid for Origin Energy, one of Australia’s biggest energy companies, after refusing to raise its offer price beyond $11 billion ($£6.2 billion).
Source: Latest Business News from Times Online | 9 Sep 2008 | 7:39 am

Russia agrees to Georgia pullback

Dmitry Medvedev, Russia's president, agreed to dismantle Russian checkpoints in Georgia and replace its troops with 200 EU monitors by October 1, a breakthrough in peace negotiations that had been at stalemate for the past several weeks
Source: FT.com - US homepage | 9 Sep 2008 | 7:39 am

BG gives up battle for Origin Energy

UK gas producer BG Group has admitted defeat in its hostile bid for Origin Energy after the Australian group's countered with an A$9.6bn (£4.5bn) tie-up with ConocoPhillips, the US oil major, for its 'jewel-in-the-crown' business.
Source: Telegraph Business | 9 Sep 2008 | 7:31 am

Asia Markets 9/10/2008

Most market is Asia fell

The Nikkei was off 1.8% to 12.402

The Hang Seng fell 1.9% to 20,406.

The Shanghai Composite rose 1% to 2,146.

Data from Reuters

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Sep 2008 | 7:29 am

Saudi minister casts doubt over Opec cut

Comments from Ali Naimi, Saudi Arabia's powerful oil minister, suggesting the oil market is balanced have made it less likely the Opec oil cartel will formally decide to cut its output
Source: FT.com - US homepage | 9 Sep 2008 | 7:26 am

Redrow sees yearly profits slump

UK housebuilder Redrow sees annual profits almost halve to £65.5m as it battles "unprecedented market conditions".
Source: BBC News | Business | World Edition | 9 Sep 2008 | 7:19 am

London opens for trading after outage

London equity markets opened cautiously on Tuesday after a technical problem wiped out most of the previous session's business. However, with little corporate news flow, the FTSE 100 opened up just 0.2...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:13 am

Property sales plunge to one house a week

The number of homes changing hands plunged in August, with some estate agents selling only one home per week, as the number of first-time buyers dwindled to record lows.
Source: Latest Business News from Times Online | 9 Sep 2008 | 7:00 am

DreamWorks financing deal remains elusive

Steven Spielberg and his partners are having a tough time getting a loan to launch their movie company.

Man, you know the debt markets are something awful when even Steven Spielberg is having a tough time getting a loan.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

JetBlue auctioning tickets on EBay

Opening bids for the weekend-only flights start at a nickel.

Travelers searching for deals on airfares this fall might consider an unusual alternative: bidding for them online.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

Google to sell commercials for some NBC Universal cable networks

The partnership boosts the Internet search giant's effort to expand beyond Web advertising. Google Inc.'s nascent...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:00 am

Google to sell commercials for some NBC Universal cable networks

The partnership boosts the Internet search giant's effort to expand beyond Web advertising.

Google Inc.'s nascent efforts to break into the television advertising business received a boost Monday when NBC Universal said it would allow the Internet giant to sell some commercials for its cable networks.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

99 Cents Only raises top price -- to 99.99 cents

With inflation and a higher minimum wage, capping prices at 99 cents had become a burden for the discounter, which had suffered two quarters in a row of losses.

After weeks of speculation and hype, 99 Cents Only Stores announced price increases Monday -- by almost a penny an item.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

U.S. stocks surge on Fannie Mae, Freddie Mac takeover

The Dow gains 290 points but Fannie and Freddie shares take big hits.

The financial markets weighed in Monday on the government's historic takeover of Fannie Mae and Freddie Mac -- and the verdict was a rousing thumbs up.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

Getting a clearer picture of challenges in digital TV rollout

Wilmington, N.C., is the first city to switch signals, offering officials valuable lessons ahead of the country's transition in February.

Thousands of households that rely on television antennas here began receiving better-looking programming Monday, as the coastal city became the nation's first to switch to all-digital TV signals.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

Tribune, Google trade blame in United Airlines stock fiasco

Human error compounds computer error in the revival of a 2002 bankruptcy story that prompts a sell-off in UAL shares. News site owner Tribune is 'looking into' the matter. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:00 am

Tribune, Google trade blame in United Airlines stock fiasco

Human error compounds computer error in the revival of a 2002 bankruptcy story that prompts a sell-off in UAL shares. News site owner Tribune is 'looking into' the matter.

Information can live in cyberspace forever. And that cost some investors in United Airlines parent UAL Corp. a load of money Monday.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

J.K. Rowling wins 'Harry Potter' copyright ruling

Website operator Steven Vander Ark's "Harry Potter Lexicon" encyclopedia would cause Rowling irreparable harm as a writer, a judge decides. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:00 am

Long Beach aims to boost output from Wilmington oil field

The state Legislature passes a bill to let the city negotiate a contract with Occidental Petroleum.

Long Beach isn't waiting for Congress and the presidential candidates to do something about reducing America's dependence on imported foreign oil.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

Judge rejects plea deal for Broadcom co-founder Henry Samueli

The agreement had called for Samueli to get five years of probation for his part in the alleged backdating of stock options. But the judge said the deal gave 'the impression that justice is for sale.'...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:00 am

Judge rejects plea deal for Broadcom co-founder Henry Samueli

The agreement had called for Samueli to get five years of probation for his part in the alleged backdating of stock options. But the judge said the deal gave 'the impression that justice is for sale.'

Suggesting that Broadcom Corp. co-founder Henry Samueli deserves to go to prison, a federal judge Monday rejected a deal with prosecutors that would have given the Orange County billionaire probation for lying to regulators about his role in an alleged $2.2-billion stock-option scam.

Source: L.A. Times - Business | 9 Sep 2008 | 7:00 am

DreamWorks financing deal remains elusive

Steven Spielberg and his partners are having a tough time getting a loan to launch their movie company. Man, you...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 9 Sep 2008 | 7:00 am

BG pulls out of Origin approach

UK gas producer BG Group ends its hostile £6.3bn takeover bid for rival Australian energy firm Origin.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 6:56 am

London makes subdued start after brief rally

London's leading shares were trading at a subdued level today as fears over the global economy resurfaced and overshadowed the US Government's £110 billion bailout of Freddie Mac and Fannie Mae, the mortgage debt giants.
Source: Latest Business News from Times Online | 9 Sep 2008 | 6:36 am

Oil falls ahead of Opec meeting

Oil prices fall with analysts saying there are signs that Opec will maintain production levels when it meets later in Vienna.
Source: BBC News | Business | World Edition | 9 Sep 2008 | 6:22 am

Tips on how to make your business recession proof

How do I make my business recession proof?
Source: Telegraph Business | 9 Sep 2008 | 6:10 am

KDB mum on Lehman deal, eyes top 3 Asia spot (Reuters)

Reuters - State-owned Korea Development Bank (KDB) on Tuesday kept mum on its talks with Lehman Brothers over a possible investment, but said it was aiming to be a top three investment bank in Asia within the next five years.

Source: Yahoo! News: Business | 9 Sep 2008 | 6:09 am

Google backs project to connect 3bn to net

Google has thrown its weight behind ambitious plans to bring internet access to 3bn people in Africa and other emerging markets by launching at least 16 satellites to bring its services to the unconnected half of the globe
Source: FT.com - US homepage | 9 Sep 2008 | 6:04 am

Currency: Dollar hovers above recent lows

The New Zealand dollar hovered above its recent near-two-year low after it was caught up in moves to dump the Australian dollar and euro today. By 5pm, the kiwi was at US66.29c, about 20 points above its session low but well below...
Source: New Zealand Herald - Business | 9 Sep 2008 | 5:59 am

A race to use less gas in the long haul

With energy crisis on full bore, fuel-efficient cars are scarce. But a new breed of driver is stretching what you can squeeze out of a tank.

Darius Tarman dreams of roaring engines. He owns three classic muscle cars, races on weekends and sells exotic racing pistons for a living. He is what is known as a car guy.

Source: L.A. Times - Business | 9 Sep 2008 | 5:34 am

U.S. hiring seen weaker in fourth quarter: Manpower

NEW YORK (Reuters) - A measure of U.S. employment expectations fell to its lowest level since 2003, amid signs the U.S. job market slowdown is spreading to economies around the globe, according to a quarterly survey by Manpower Inc released on Tuesday.

Source: Reuters: Business News | 9 Sep 2008 | 5:05 am

Recreating Harry Potter' s Spell

Is there life after Harry Potter?

More than a year after J.K. Rowling unveiled her seventh and final Potter novel, Scholastic, its U.S. publisher, has all but fallen off the children's chapter-book bestseller lists. It has so far been unable to produce a series that can begin to fill the shoes of the boy wizard.

Now, Scholastic is hoping that the 39 Clues will provide them with a much-needed hit.

39 Clues pioneers a new approach to children's lit: More than just another set of chapter books, it is a multiplatform adventure series combining books with online gaming and card collecting. The 10-book series, which makes its debut today with The Maze of Bones, presents an interactive, immersive treasure hunt plotline; using the online component to create a community, kids can also compete for $100,000 in prizes.

The treasure-hunt theme of the 39 Clues series seems fitting.

Harry Potter shattered publishing records after it was first published in 1997 (sales now exceed 400 million copies worldwide), turning into an unprecedented success for Scholastic.

But a year after the final Potter book hit the shelves, Scholastic's shares have fallen off nearly 25 percent, as the children's publisher battles harsh economic conditions and a fruitless search to find a series that catches fire with the so-called "middle-grade" age group that Harry Potter targeted (roughly 8 to 12). Disney-Hyperion's Percy Jackson & The Olympians and Artemis Fowl, as well as Random House's Books of Ember, are three fantasy series that have sprouted up from other publishers to fill the Potter void.

With 39 Clues, Scholastic is banking on the idea that favorite pastimes like computer games and card collecting, paired with recent trends like social networking, will draw children in to the series.

"What we're trying to do is extend the reading experience," says Suzanne Murphy, the vice president and publisher of Scholastic's Trade Publishing Division.

"We know from experience that the idea of being a part of the story, being part of a community of kids, has big appeal."
 
Murphy says that the idea for 39 Clues originated out of a brainstorming session led by children's editor David Levithan, who subsequently recruited Rick Riordan (author of the Percy Jackson books) to write Maze of Bones as well as the series' overall story arc.

Since then, bestselling children's authors Gordon Korman, Peter Lerangis, and Jude Watson have signed on for subsequent books, and DreamWorks picked up the movie rights.

"I think it's a different kind of publication that they're releasing at this point, and it really does fit into a trend we're seeing in libraries across country," says Dale Lipschultz, literacy officer for the Office for Literacy and Outreach Services of the American Library Association. "Scholastic has always been very savvy about tapping into trends."

Scholastic has printed a first run of 500,000 copies of Maze of Bones—a large number by most standards, but nothing to compete with Harry Potter and the Half-Blood Prince's initial run of 12 million copies.

In addition to the books, which will sell for $12.99 each, Scholastic will also offer trading-card packs for $6.99 and audio CDs for $19.95 tied to the 39 Clues series.

"The fact that they're utilizing a multimedia strategy is interesting," says Drew Crum, an analyst covering Scholastic for Stifel Nicolaus. "They're creating new revenue streams and finding new ways for them to monetize their intellectual property and content."

But at the end of the day, will all of the innovation add up to blockbuster success à la Potter?

Crum, who rates Scholastic shares as a "hold," says that the combination of a difficult macroeconomic headwind for the industry and the low success rates of new titles makes him believe the impact of 39 Clues on Scholastic's top line will be minimal. Crum says that the series is not a factor included in his forecasting model for Scholastic.

An analyst with Citigroup, Catriona Fallon, rates Scholastic as a "sell," and does not expect 39 Clues to provide any real relief for the publisher.

"Despite the hype around the set of authors and the lower price points than Harry Potter, there is still a crowded marketplace for the attention of preteen-agers," says Fallon in a research note published last week. "39 Clues may be a nice add-on product set for Scholastic but is unproven as a blockbuster to replace Harry Potter."

For its part, Scholastic may be hoping for a miracle, but is all too realistic about the tall task of replicating a literary sensation.

"There's never going to be anything like Harry Potter," says Scholastic's Suzanne Murphy. "We hope that kids love 39 Clues, but for us it's entirely different. Our feeling is, there's never going to be another Harry Potter."

Related Links
Harry's Reign Over Books Ends
Harry Potter and the Chamber of Copyright Law
The Cultural Permeation of Books and Music


Source: Portfolio.com: Top 5 | 9 Sep 2008 | 4:00 am

Northpower widens its business, takes over Energex contracts

The biggest New Zealand-owned electrical contractor, Northpower, is widening its grip on the top half of the North Island by taking over the contracts of Australian company Energex. Northpower has offered jobs to most of Energex's...
Source: New Zealand Herald - Business | 9 Sep 2008 | 3:42 am

No investor returns from Blue Chip company asset sales

Investors remain unlikely to see any returns from the property management company of the now defunct property investor Blue Chip, liquidators said in their latest report. Meltzer Mason Heath, the liquidator for 21 Blue Chip companies,...
Source: New Zealand Herald - Business | 9 Sep 2008 | 3:07 am

Dunne proposes partnership tax changes

The Government wants to change the law to ensure the death of a spouse in a husband-wife business partnership does not result in immediate tax liabilities, Revenue Minister Peter Dunne said today. The problem arose in two-person...
Source: New Zealand Herald - Business | 9 Sep 2008 | 2:45 am

Australian business barely out of doldrums

A key measure of Australian business conditions edged up from seven-year lows in August thanks to strength in the booming mining sector, a survey today showed, but pessimism still ruled in general. The National Australia Bank's...
Source: New Zealand Herald - Business | 9 Sep 2008 | 2:15 am

Expected Lombard payout shrinks further

The slowing property market is expected to reduce even further the amount secured debenture investors in Lombard Finance and Investments Ltd (LF&I) will recover. In a new letter to investors, receivers John Fisk and John Waller...
Source: New Zealand Herald - Business | 9 Sep 2008 | 2:00 am

Google and NBC Universal in cable ad deal

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 9 Sep 2008 | 1:16 am

Two more charges against Petricevic

Two new charges carrying the threat of imprisonment were laid against Bridgecorp executive director Rod Petricevic in court this morning. Petricevic appeared alongside co-accused Bridgecorp executive director Robert Roest in the...
Source: New Zealand Herald - Business | 9 Sep 2008 | 1:00 am

United shares plunge on old news story

United Airlines plunged after a false report that the US carrier had returned to bankruptcy court surfaced on the internet
Source: FT.com - US homepage | 9 Sep 2008 | 12:59 am

After The Close - Monday

PAREXEL (PRXL), a biopharmaceutical services company, cuts its Q1 EPS outlook to 20-21 cents, below views of 25 cents. It also expects full-year...
Source: Investor's Business Daily: BUSINESS | 9 Sep 2008 | 12:50 am

Satellite Company Aims To Touch Down On Wall Street

The launch of the GeoEye-1 satellite on Saturday meant that its maker, GeoEye, now had two satellites making the sort of aerial photos that can...
Source: Investor's Business Daily: BUSINESS | 9 Sep 2008 | 12:50 am

Trends & Innovations - Monday

Magazine prints electrifying cover
Source: Investor's Business Daily: BUSINESS | 9 Sep 2008 | 12:50 am

In Brief - Monday

Perrigo (PRGO), a drug maker, paid an undisclosed sum for the rights to market a generic version of allergy drug Xyzal from Synthon...
Source: Investor's Business Daily: BUSINESS | 9 Sep 2008 | 12:50 am

Business Briefs - Monday

Ad, phone worries hurt Google. Shares of the Internet search king tumbled 5.5% to 419.95 after the National Association of Advertisers objected to...
Source: Investor's Business Daily: BUSINESS | 9 Sep 2008 | 12:50 am

The Justice Department: Google (GOOG) Looks Like Microsoft (MSFT)

The Association of National Advertisers has already indicated to the Justice Department that it is bitter about the planned link-up which would allow Google (GOOG) to sell part of Yahoo!'s (YHOO) search inventory. The ANA argues that since the two companies have about 85% of the US search market between them, they will use their partnership to raise rates. The logic has the benefit of making sense. Firms do not form alliances to lose money.

The ANA carries a lot of wood. Its membership includes big marketers like GM (GM) and Wal-Mart (WMT). Now it appears that the association is not alone in its concerns.

As it turns out, Google was probably best off not to mention a deal with Yahoo! at all. It may have helped raise the larger issue of whether Google is already throwing its weight around too much. It would be a shame if the Justice Department began to look at Google the way that Teddy Roosevelt looked at Standard Oil.

Google's lack of subtlety may be its undoing. According to The Wall Street Journal "The Justice Department has quietly hired one of the nation's best-known litigators, former Walt Disney Co. vice chairman Sanford Litvack, for a possible antitrust challenge to Google Inc.'s growing power in advertising."

So, Justice may end up spending years with a search warrant going through the Google mansion looking for evidence.

At $419, Google is already near a 52-week low, down from a period high of over $747. If the investigation moves beyond the Yahoo! tie-up, the shares could easily head below $350.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Sep 2008 | 12:47 am

Fears over S Korean lifeline for Lehman Brothers

Lehman Brothers' hopes of a financial lifeline from Korea Development Bank (KDB) have been called into question after South Korea's financial regulator urged the bank to carefully consider any investment.
Source: Telegraph Business | 9 Sep 2008 | 12:01 am

Nationwide will cut jobs at Derbyshire and Cheshire building societies

Nearly one million members and 1,450 staff at two of the UK's top eleven building societies, the Derbyshire and the Cheshire, were left reeling at the news that their institutions were being merged with the Nationwide Building Society after being hit by sour loans.
Source: Telegraph Business | 9 Sep 2008 | 12:01 am

August storms dampen high street retail sales

A washout August sent high street sales tumbling for the fifth time this year, the worst performance since the London bombings in 2005.
Source: Telegraph Business | 9 Sep 2008 | 12:01 am

LSE suffers computer breakdown on day of market rallies

The London Stock Exchange's trading system suffered an embarrassing breakdown yesterday as European equities posted their biggest gains in five months.
Source: Telegraph Business | 9 Sep 2008 | 12:01 am

Airline shares plummet after old story posted online

MINNEAPOLIS - The 2002 bankruptcy of United Airlines parent company was big news at the time, and big news again on Monday when an investment newsletter mistakenly passed along the old news story, thinking it was new. United shares...
Source: New Zealand Herald - Business | 9 Sep 2008 | 12:00 am

Google backs $750m African internet project$

Google has teamed up with John Malone, the media billionaire, and HSBC on a venture that will offer internet access to three billion people in Africa and other emerging markets as the US search engine continues to expand its presence across the Web.
Source: Latest Business News from Times Online | 8 Sep 2008 | 11:42 pm

4 Chart Breakout Candidates (NTRS, WMT, AMTD, CHS)

Source: 24/7 Wall St. | 8 Sep 2008 | 11:37 pm

Bush to withdraw 4,000 Iraq troops

George W. Bush plans to withdraw 4,000 troops from Iraq before the end of his presidency as the Pentagon starts to shift its focus to Afghanistan, the White House said
Source: FT.com - US homepage | 8 Sep 2008 | 11:24 pm

Michael Dell buys $US100 million of Dell shares

DALLAS- Michael Dell, CEO of Dell Inc, bought about US$100 ($150.92) million of the computer maker's stock last week, his second such buying spree in the past three months. Shares in the world's second-largest maker of personal...
Source: New Zealand Herald - Business | 8 Sep 2008 | 11:12 pm

Derbyshire Building Society admits to facing uncertain future

Derbyshire Building Society, the mutual rescued yesterday by Nationwide, was wrong-footed by bad bets in the money markets, hamstrung by a botched IT system and facing the consequences of a poorly timed £1.4 billion foray into sub-prime lending.
Source: Latest Business News from Times Online | 8 Sep 2008 | 11:00 pm

NZ Shares: Local market more cautious than overseas counterparts

The New Zealand sharemarket was up about a third of a per cent in early trade, as investors continued to show cautious enthusiasm for the US government's bailout of mortgage finance giants Fannie Mae and Freddie Mac. With its limited...
Source: New Zealand Herald - Business | 8 Sep 2008 | 10:45 pm

Google shares fall

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 8 Sep 2008 | 10:33 pm

Shell in Iraqi gas deal worth up to $4bn

Royal Dutch Shell is to become the first western oil company to sign a deal with the Iraqi government since the US-led invasion of 2003, agreeing a plan to capture and use gas in the Basra region that could be worth up to $4bn
Source: FT.com - US homepage | 8 Sep 2008 | 10:33 pm

Dunkin' Donuts Kicks Starbucks (SBUX) While It Is Down

Dunkin' Donuts plans to double its US stores to 15,000 by 2020. The management at the inexpensive coffee shop chain must have a crystal ball or a very good psychic. Not many companies know their plans so far out.

Dunkin' Donuts appears to think it can join the ranks of all the other companies trying to take business from Starbucks (SBUX). McDonald's (MCD) has been at the top of that list, and now they won't be so lonely.

According to Reuters, Dunkin' "gets around 65 percent of sales from beverages. Over the last few years, it has added espressos, lattes and cappuccinos that cost roughly $1 less than at Starbucks."

At some point the market for coffee will become so crowded that retail chains will have to give away the java and hope to sell breakfast food to bring in revenue.

Douglas A. McIntyre

Source: 24/7 Wall St. | 8 Sep 2008 | 10:11 pm

Slowdown sees groups cut IT spending

More than 40 per cent of large businesses have cut their IT budgets this year because of the global economic slowdown, according to a Forrester report set to be released on Tuesday
Source: FT.com - US homepage | 8 Sep 2008 | 9:50 pm

Three extremists guilty of bomb plot

Islamic extremists face life sentences after being convicted of plotting to use homemade liquid explosives
Source: FT.com - US homepage | 8 Sep 2008 | 9:45 pm

TB's return comes with high costs

You might think tuberculosis hasn't been a problem since your grandparents' era, but the illness is making a worldwide comeback. Its costs of treatment and lost productivity are estimated at almost $3 billion a year. Frank Browning reports.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

A look at candidates' leadership styles

The presidential candidates' stands on the issues are what most of us will look at as we vote this fall. But what about John McCain's and Barack Obama's skills as a chief executive officer? Kevin Cashman from Korn/Ferry International sizes them up.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

U.S. cancels nuke deal to punish Russia

The White House has pulled a nuclear cooperation deal with Russia back from Congress. The cancellation means Russia will lose billions in potential profits. Some American companies aren't too happy, either. Nancy Marshall Genzer reports.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

OPEC members say oil price is too low

A couple members of OPEC -- which will be meeting in Vienna on Tuesday -- say they think there's too much oil on the market, pushing prices too low. Ashley Milne-Tyte reports.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

Should home ownership be the dream?

Does that sense that every American ought to own a home get us and our financial institutions into trouble? Commentator Gregory Ip says we need to answer that question before we decide what to do with Fannie and Freddie.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

Lots of questions still surround bailout

There's more we don't know about what's going to happen in the mortgage finance market than we do know. To get some perspective on the bailout of Fannie Mae and Freddie Mac, Kai talks with Karen Shaw Petrou at Federal Financial Analytics.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

Bailout could help homebuyers

There are a lot of ways to try to measure the goverment's bailout of Fannie Mae and Freddie Mac. Sheer dollar amounts. Share prices. Bond yields. Or how about this: It's cheaper to get a mortgage today than it was last week. Janet Babin reports.
Source: Marketplace | 8 Sep 2008 | 9:29 pm

How Fannie, Freddie Bailout Impacts Consumers (Deal of the Day)

How the government's bailout plan will impact the housing market and taxpayers.

Source: SmartMoney.com | 8 Sep 2008 | 9:01 pm

Biodel Trades Down Close To Net Asset Value (BIOD)

Source: 24/7 Wall St. | 8 Sep 2008 | 8:55 pm

Baby I'm a star

Music biz lawyers take offence with tiny Prince fan
Source: BBC News | Business | World Edition | 8 Sep 2008 | 8:47 pm

Financial ETFs Jump on Government Bailout Plan (Daily ETF Wrap-Up)

The government bails out Fannie and Freddie, sending ETFs higher.

Source: SmartMoney.com | 8 Sep 2008 | 8:25 pm

Michael Dell Buying More Stock (DELL)

Source: 24/7 Wall St. | 8 Sep 2008 | 8:20 pm

Wall Street Cheers Bailout

The major indexes advanced after the Treasury's rescue of Fannie Mae and Freddie Mac.

Source: SmartMoney.com | 8 Sep 2008 | 8:15 pm

No Love for Lehman

Financial stocks are rallying today, as investors exhale in relief that the worst of the credit crunch may be over with the government takeover of Fannie Mae and Freddie Mac.

Lehman Brothers is one of the exceptions.

Despite a management reshuffle, an optimistic outlook from an influential analyst, and a broad market rally, shares of Lehman tumbled, falling nearly 20 percent at one point.

The firm says it will announce "key strategic initiatives" when it reports third-quarter results on September 18.

The problem is that Lehman is looking increasingly desperate as long as there is no sign of those initiatives materializing as a deadline looms.

"With each passing day, Lehman's hunt for a white knight is looking more desperate," writes Matthew Goldstein on BusinessWeek.com.

Charles Gasparino on CNBC is reporting that Lehman is meeting today with potential buyers of its Neuberger Berman asset-management unit.

A month or so ago, such a report would have heartened shareholders, as it would give as much as $8 billion to shore up its capital. But after weeks of articles indicating Lehman not being able to pull the trigger on a deal, the report only unsettled investors.

Henny Sender of the Financial Times reports that Royal Bank of Canada had weighed a bid for Lehman Brothers but stepped back amid doubts about the firm's ability to bolster its balance sheet.

If big potential investors like the Royal Bank of Canada and the Korea Development are getting cold feet, after presumably getting a peek at Lehman's books, that appears on the surface to be very worrisome.

Yet all is not gloomy, contends Brad Hintz, an analyst with Bernstein Research—and a former chief financial officer of Lehman.

Hintz weighed several scenarios for Lehman, reports the New York Times' DealBook. The best option—a sale of its troubled mortgage-backed securities—isn't going to happen.

But the next best option—write-downs and asset sales—is very possible and would allow Lehman to recover.

"Lehman remains a powerful force in fixed income and institutional equities in North America and the E.U. and, with time, Lehman will be able to recover," Hintz wrote in a note to investors, according to DealBook.


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Source: Portfolio.com: Top 5 | 8 Sep 2008 | 8:00 pm

Consumer borrowing slows to weakest in 7 months (AP)

AP - Borrowing by consumers slipped in July to the weakest pace in seven months, reflecting a big slowdown in demand for car loans.
Source: Yahoo! News: Business | 8 Sep 2008 | 7:11 pm

Today's 3 Picks: WM, GNW, KBH (Market Movers)

WaMu ousts CEO. Genworth covers its Fannie (and Freddie). KB phones home.

Source: SmartMoney.com | 8 Sep 2008 | 6:41 pm

Freddie, Fannie Shareholders Left Holding Bag (Ticked Off)

Freddie and Fannie shareholders were caught holding the short end of the stick.

Source: SmartMoney.com | 8 Sep 2008 | 5:50 pm

FTSE closes up 4% despite hitch (AFP)

AFP - Shares in London closed sharply higher on Monday, adding nearly four percent despite a technical glitch which prevented trading for most of the business days.

Source: Yahoo! News: Business | 8 Sep 2008 | 4:36 pm

Finding a Good Deal on a Leased Car Not Easy (Rip-Off of the Week)

Falling prices for used cars has made leasing more expensive. Here's why.

Source: SmartMoney.com | 8 Sep 2008 | 3:40 pm

Discover May Be Worth Betting On (Today From Barron's)

Discover has been the tortoise in the race to exploit consumers' shifting preference for plastic.

Source: SmartMoney.com | 8 Sep 2008 | 3:36 pm

Mortgage Bailout Latest Blow to Free Markets (Tradecraft)

Free markets, not the government, should've decided the fates of Fannie, Freddie.

Source: SmartMoney.com | 8 Sep 2008 | 3:11 pm

To Buy or to Lease (Auto Leasing)

The answer depends, in part, on how much cash you have on hand, and whether you'd get better returns investing that money elsewhere.

Source: SmartMoney.com | 8 Sep 2008 | 2:38 pm

8 Great College Towns Perfect for Retirees (The New Retirement)

College towns are great for students -- and retirees. Here are eight worth relocating to.

Source: SmartMoney.com | 8 Sep 2008 | 2:25 pm

Whoo Hoo, a New C.E.O.

The credit crunch's list of C.E.O. casualties keeps rising.

Washington Mutual, the nation's largest savings and loan, has ousted its longtime chief executive, Kerry Killinger, who now joins Charles Prince, Stan O'Neal, James Cayne, Martin Sullivan, and other C.E.O.'s who have been defenestrated as a result of the collapse in the subprime-mortgage market.

On Portfolio.com's June list of C.E.O.'s who may be sitting ducks because of mortgage problems, only three remain.

WaMu named Alan Fishman, formerly chairman Meridian Capital Group and president of Sovereign Bank, as its new leader.

The thrift also announced that it has reached an agreement with its regulator, the Office of Thrift Supervision, over its operations. The agreement will not require WaMu to raise new capital, but it will have to provide the regulator with "an updated, multiyear business plan and forecast for its earnings, asset quality, capital, and business segment performance."

Killinger had been C.E.O. since 1990 and had led WaMu through a period of rapid growth. But the thrift warned earlier this year that it could lose as much as $19 billion over the next few years because of its exposure to mortgages, many of them in California.

"We believe Alan Fishman is the ideal executive to succeed Kerry Killinger and lead WaMu through its current challenges," Stephen Frank, chairman of the board of WaMu, said. "Alan has had a distinguished career in many aspects of the financial-services business and brings a unique combination of in-depth industry knowledge, an entrepreneurial approach, and strong management skills that make him the right choice to be C.E.O. of WaMu at this critical juncture."



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High Anxiety
WaMu's Atrocious Mortgage Servicing
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Source: Portfolio.com: Top 5 | 8 Sep 2008 | 12:30 pm

The Bailout Boost

Many questions remain about the government's seizure of the mortgage giants Fannie Mae and Freddie Mac, but the plan has already passed its first test.

Stock markets around the world rallied on news of the U.S. Treasury's takeover, relieved that government control of the prodigal twins of the U.S. financial system would ensure that credit remain flowing in the troubled mortgage market.

Benchmark stock indexes in Tokyo, Frankfurt, and London rose more than 3 percent. U.S. stock index futures were pointing to a higher opening this morning.

Equally as important was the positive reaction of China and Japan, the biggest buyers of Fannie and Freddie securities. Officials from both countries hailed the rescue.

"I think it will have a positive impact on the world economy as it eases worries over the U.S. economy through more stable financial markets in the United States," Bunmei Ibuki, the Finance Minister of Japan, told reporters, Reuters reported.

On Sunday, the Treasury announced plans to take over Fannie and Freddie, the two biggest buyers of U.S. mortgages, and put them in a conservatorship run by the Federal Housing Finance Agency. The C.E.O.'s of the two companies are stepping down.

By putting the full weight of the U.S. government behind the two, Treasury Secretary Hank Paulson is wagering that mortgage rates will ease and the nation's banking system will get enough breathing room to lend again. He's also gambling that removing the incentive of increasing shareholder value to focus more on stability and risk management will win a repaired Fannie and Freddie, and the U.S. economy, greater confidence at home and abroad.

"Our economy and our markets will not recover until the bulk of this housing correction is behind us," Paulson said on Sunday.

Whether the plan will succeed remains to be seen. But there are already clear losers.

Holders of common and preferred shares of Fannie and Freddie are some. Common shareholders aren't exactly wiped out, but they've come pretty close. The government is getting warrants for as much as 80 percent of the two companies' common shares. And dividends to preferred shareholders are being eliminated.

Taking one of the biggest hits is famed Legg Mason fund manager Bill Miller, who is Fannie's biggest investor. A number of regional banks are big Fannie and Freddie shareholders too—in particular Sovereign Bancorp.

Others, of course, have been betting against Fannie and Freddie for nearly a year, most famously hedge fund manager Bill Ackman.

And there will be a cost to taxpayers.

On CNBC, Paulson ducked the question, saying that Treasury had not done a specific analysis on it and noting that the answer will depend on how long it takes the housing market to recover.

William Poole, the former president of the Federal Reserve Bank of St. Louis, told Bloomberg Radio that he estimates that Treasury may need to cover as much as $300 billion in losses.

The federally chartered, shareholder-owned structure, with risks covered by taxpayers, is "an unacceptable situation," Poole told Bloomberg, saying that it is a "stopgap" that passes the ball to the next administration.

Poole is one of the few voices criticizing the bailout this morning. Yet how long will the euphoria last? The Bear Stearns rescue provided only a brief respite.  

Now that the government has used its big guns, this bailout better hold off the credit storm for a while.




Related Links
Price Restraint
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Source: Portfolio.com: Top 5 | 8 Sep 2008 | 11:30 am