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Lehman racks up record $3.9bn lossBeleaguered Wall Street bank Lehman Brothers has effectively put itself up for sale following weeks of intense scrutiny over the state of its finances.Source: Telegraph Business | 10 Sep 2008 | 2:00 pm Stocks edge up on Lehman newsStocks gained early Wednesday as investors digested Lehman Brothers' steeper-than-expected quarterly loss and plans to clean up its balance sheet.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 1:43 pm Oil rises on Opec production curbOil prices rally after Opec tells its members to limit their production to agreed quotas in the wake of falling demand.Source: BBC News | Business | World Edition | 10 Sep 2008 | 1:38 pm RAB threatens to liquidate flagship fundRAB Capital, the embattled hedge fund, has threatened to liquidate its flagship $900 million Special Situations fund unless investors agree to leave their capital locked up for the next three years.$Source: Latest Business News from Times Online | 10 Sep 2008 | 1:36 pm Lehman plans sales, posts $3.9 billion quarterly loss (Reuters)
Source: Yahoo! News: Business | 10 Sep 2008 | 1:34 pm Lehman Brothers loses $3.9bn in third quarterLehman Brothers shares opened sharply higher after it confirmed plans to spin off the majority of its commercial real estate assets and sell a majority stake in its asset management unit. It reported a $3.9bn net loss for the third quarter of the yearSource: FT.com - US homepage | 10 Sep 2008 | 1:33 pm Lehman plans sales, sees $3.9 billion lossNEW YORK (Reuters) - Lehman Brothers Holdings Inc said it plans to sell a majority stake in its investment management division and spin off commercial real estate assets as the struggling U.S. investment bank fights to raise capital.Source: Reuters: Business News | 10 Sep 2008 | 1:28 pm Gas prices rise as Ike nears TexasGasoline prices rose for the first time in 10 days as Hurricane Ike bears down on the Texas coast, according to a nationwide survey of gas station credit card swipes.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 1:28 pm Lehman call gives Wall St some comfortWall Street appeared to take some encouragement from Lehman Brothers' executives explanation of its third quarter figures after publication of the results had initially provoked a further wave of anxietySource: FT.com - US homepage | 10 Sep 2008 | 1:28 pm Britain 'to fall into recession'The European Commission warns that Germany, Spain and the UK will fall into recession in 2008.Source: BBC News | Business | World Edition | 10 Sep 2008 | 1:22 pm Day Trader Alert: ImClone Systems (IMCL, BMY)ImClone Systems Inc. (NASDAQ: IMCL) is a biotech buyout bonanza stock that traders and investors have been watching closely. The company has said that the proposed $60.00 per share cash buyout from Bristol-Myers Squibb Company (NYSE: BMY) is inadequate. Carl icahn has been holding out for a better price and has been seeking other suitors. Icahn noted that the CEO of another pharmaceutical company has now submitted a proposal that is subject to due diligence but not to financing to acquire ImClone for $70.00 per share in cash. Icahn said that it has agreed to allow the company to conduct due diligence for a two week period, subject to a confidentiality agreement. The press release also noted that there was no determination as to if the $70.00 would be adequate to acquire the company. Wall Street has already been anticipating a higher bid. Shares closed at $63.65 yesterday and are now trading right around that $70.00 hurdle pre-market. Back at the height of the Erbitux news in 2004 this stock briefly traded north of $80.00 before going back down under $40.00 for most of the 2005 to 2007 period. Getting a higher bid like this may or may not result in a deal and the forward valuations will become an issue of concern based upon forward estimates. Icahn has said that announcements regarding the pipeline and current developments make the company more valuable. How much more valuable is up for debate from firm to firm. Shares are trading around $70.00 right now and we have seen roughly 600,000 shares trade hands. Day traders are going to be active in this stock with shares at multi-year highs.
Jon C. Ogg Source: 24/7 Wall St. | 10 Sep 2008 | 1:21 pm ImClone touts another buyout bidImClone Systems calls Bristol-Myers Squibb's $4.5 billion buyout offer "inadequate" and discloses that unnamed suitor's willing to pay more.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:19 pm ImClone says has received $70 share buyout offer (Reuters)Reuters - Biotechnology company ImClone Systems Inc said on Wednesday that it has received an offer from a large pharmaceuticals company to buy ImClone for $70 a share in cash.Source: Yahoo! News: Business | 10 Sep 2008 | 1:18 pm ImClone says has received $70 share buyout offerBOSTON (Reuters) - Biotechnology company ImClone Systems Inc said on Wednesday that it has received an offer from a large pharmaceuticals company to buy ImClone for $70 a share in cash.Source: Reuters: Business News | 10 Sep 2008 | 1:18 pm Lehman Leaves Futures MixedAn extensive restructuring plan but no apparent buyer of assets left traders cautious ahead of the bell.Source: SmartMoney.com | 10 Sep 2008 | 1:16 pm Migration fears unjustified, OECDGrowing migration is putting strains on rich and poor economies alike, according to the OECD.Source: BBC News | Business | World Edition | 10 Sep 2008 | 1:14 pm Indications: U.S. stock futures point to higher start as Lehman updatesU.S. stock futures turned lower Wednesday as Lehman Brothers announced several initiatives to bolster its finances -- but didn’t have a concrete asset sale to confirm.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:13 pm Lehman suffers nearly $4 billion lossLehman Brothers booked a nearly $4 billion quarterly loss Wednesday and announced a series of drastic steps aimed at reviving the beleaguered firm.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 1:09 pm Metals Stocks: Gold falls to 11-month low as dollar strengthensFalling for an eighth straight session, gold futures again play off a stronger dollar and fresh signs of weakness in crude oil.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:09 pm Currencies: Japan's yen in spotlight as risk appetite waxes and wanesForeign-exchange traders remain fixed on Japan's yen, prices for which gyrate as the currency functions as a proxy for risk appetite. The dollar makes modest gains.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:05 pm Flat open eyed; Lehman offsets tech, FedEx (Reuters)
Source: Yahoo! News: Business | 10 Sep 2008 | 1:04 pm Flat open eyed; Lehman offsets tech, FedExNEW YORK (Reuters) - Stocks headed for a flat to higher open on Wednesday as uncertainty about the outlook for investment bank Lehman Brothers tempered news of positive outlooks from chip maker Texas Instruments and shipper FedEx .Source: Reuters: Business News | 10 Sep 2008 | 1:04 pm IEA trims global energy demand outlookRead full story for latest details.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 1:03 pm Bond Report: Treasurys fall after Lehman reports loss, planned saleNEW YORK (MarketWatch) -- Treasurys fell early Wednesday, reversing yesterday's gains, after Lehman Brothers announcement of its third-quarter losses seemed to calm investors.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:03 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:01 pm Lehman reports third quarter lossWorld markets are shaken as troubled US bank Lehman Brothers reports a larger-than-expected quarterly loss.Source: BBC News | Business | World Edition | 10 Sep 2008 | 1:00 pm NewsWatch: Lehman Brothers suffers $3.9 bln loss, plans to jettison assetsLehman says it lost $3.9 billion in the third quarter after taking a gross mark-to-market loss of $7.8 billion. It plans to slash its dividend, sell a majority stake in Neuberger Berman and spin off commercial-real-estate assets.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 1:00 pm Lehman Sees $3.9 Billion Loss and Plans to Shed AssetsLehman Brothers said that it would sell a majority stake in its investment management unit and spin off commercial mortgages as it tries to stay afloat.Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 12:59 pm A Life-Cycle of His Own (Today From Barron's)LiveStrong Portfolio's peak performance is worthy of Lance Armstrong, its spokesperson.Source: SmartMoney.com | 10 Sep 2008 | 12:58 pm Futures Movers: Oil futures trade near $103 ahead of supply dataNEW YORK (MarketWatch) -- Oil futures traded near $103 a barrel early Wednesday, as the International Energy Agency lowered global oil demand forecasts for 2008 and 2009, while OPEC said overnight that it would cut its output.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 12:57 pm Best places to retire on waterSource: Business and financial news - CNNMoney.com | 10 Sep 2008 | 12:55 pm Apple unveils new iPodsApple, the consumer electronics giant, on Tuesday announced new versions of its popular iPod music player.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 12:55 pm Citigroup Outlines Fannie/Freddie Exposure (C, FNM, FRE)
The company also noted that quarter-to-date pre-tax impact on revenues from trading losses and write-downs of its exposure is approximately $450 million. The exposure was approximately $1 billion af of June 30, 2008 and the company noted the exposure has been reduced substantially during the quarter through sales, hedges and write-downs. Citi also has an insignificant amount of net exposure to the common shares of Fannie Mae and Freddie Mac. As a caveat and for safe harbor and "CYA" verbiage, Citi noted that the the final impact on Citi’s quarterly financial results could differ from the quarter-to-date impact disclosed above. Jon C. Ogg Source: 24/7 Wall St. | 10 Sep 2008 | 12:52 pm Ashton Kutcher and the quantsThe TechCrunch conference, like the blog that puts it on, is all about startups and the unabashed energy of the new. That means, of course, that some companies debuting at the three-day conference are more ready for prime time than others.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 12:49 pm Fannie-Freddie takeover: So far, so goodWall Street likes Henry Paulson's plan to break the logjam in the mortgage markets. But the Treasury secretary and other policymakers still have much work to do to get the economy on a more steady footing.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 12:48 pm Just how scary is Russia?The Cold War was supposed to be history, a topic today's twentysomethings know about only from the classroom, not from doing duck-and-cover drills in elementary school, as their parents did. In the 17 years that have passed since the demise of the Soviet Union, any threat Russia posed had pretty much been relegated to defaulting on its debt.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 12:48 pm London Markets: Shares decline in London as banks, insurers weighShares decline in London, with banks giving back some of the previous session’s gains amid renewed worries over capital. Insurers and retailers also trade weak, while energy shares show some gains.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 12:48 pm Europe Markets: Shares in Europe move lower as banks pressureEuropean shares fall modestly in early trading on Wednesday, with financials such as Barclays under renewed pressure as worries about capital come back to the fore after a report that Lehman Brothers has failed to secure a capital injection from the Korea Development Bank.Source: MarketWatch.com - Top Stories | 10 Sep 2008 | 12:41 pm OPEC Says It Will Cut Oil ProductionOil producers call for compliance with quotas, effectively cutting output if members follow through with the decision.Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 12:39 pm Merrill, Goldman, Morgan fall after LehmanNEW YORK (Reuters) - Shares of top U.S. investment banks fell on Wednesday after Lehman Brothers posted a steeper-than-expected quarterly loss and slashed its annual dividend.Source: Reuters: Business News | 10 Sep 2008 | 12:36 pm Merrill, Goldman, Morgan fall after Lehman (Reuters)Reuters - Shares of top U.S. investment banks fell on Wednesday after Lehman Brothers posted a steeper-than-expected quarterly loss and slashed its annual dividend.Source: Yahoo! News: Business | 10 Sep 2008 | 12:33 pm Merrill, Goldman, Morgan fall after LehmanNEW YORK (Reuters) - Shares of top U.S. investment banks fell on Wednesday after Lehman Brothers posted a steeper-than-expected quarterly loss and slashed its annual dividend.Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:33 pm Tramita Management Limited Launches TramitaCentre.comNew Web site helps new investors learn about fund options BARCELONA, Spain, Sept. 10 /PRNewswire/ -- For those new to investing, the financial world can be daunting....Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:33 pm OPEC to curb overproductionRead full story for latest details.Source: Business and financial news - CNNMoney.com | 10 Sep 2008 | 12:31 pm Longs Drug Stores Announces Agreement to Settle Class Action Lawsuits Related to Pending AcquisitionWALNUT CREEK, Calif., Sept. 10 /PRNewswire-FirstCall/ -- Longs Drug Stores Corporation ("Longs") (NYSE: LDG) today announced that Longs and CVS Caremark ...Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:30 pm Airbus Selects Goodrich Air Data, Ice Detection Systems for A350 XWB Aircraft- Selections are expected to generate more than $600 million in revenue over 20 years CHARLOTTE, N.C., Sept. 10, 2008 /PRNewswire-FirstCall/ -- Goodrich Corporation...Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:30 pm The Home Depot to Present at Bank of America 38th Annual Investment ConferenceATLANTA, Sept. 10 /PRNewswire-FirstCall/ -- The Home Depot(R), the world's largest home improvement retailer, today announced that Carol Tome, chief financial...Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:30 pm All Natural, Freeze-Dried Funky Monkey(TM) Snacks Now Certified Organic100% Real Fruit Meets USDA Natural Organic Program (NOP) Standards FISHERS, Ind., Sept. 10 /PRNewswire/ -- Funky Monkey(TM) Snacks, makers of Fruit That Crunches!(R),Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:30 pm Cincinnati Financial Corporation to Present at RBC Capital Markets Financial Institutions ConferenceCINCINNATI, Sept. 10 /PRNewswire-FirstCall/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced today that the company will participate in the Insurance IndustrySource: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:30 pm Stock futures signal mixed open after Lehman planU.S. stock futures came off their highs and pointed to a mixed open Wednesday after Lehman Brothers Holdings Inc.'s plans to shore up its balance sheet failed to calm Wall Street's worries...Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:26 pm Lehman spins off property assets on $3.9bn loss$Shares in Lehman Brothers swung wildly in pre-market trading today after the US bank said that it expects to make a loss of $3.9 billion ($£2.2 billion) for the third quarter and will sell a majority stake in its lucrative fund management group.Source: Latest Business News from Times Online | 10 Sep 2008 | 12:24 pm Lehman plans asset sales, expects 3Q lossStruggling to survive the credit crisis, Lehman Brothers Holdings Inc. plans to sell a majority stake in its prized investment management division, slashed its dividend and may even...Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:23 pm Lehman worries boost yenThe dollar gave back early gains against the yen on Wednesday as a third quarter results from Lehman Brothers, the troubled US investment bank, did little to boost investor confidence.Lehman Brothers shares...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 12:21 pm Disney says business resilient despite economyLONDON (Reuters) - Walt Disney Co's business is proving resilient in the face of tough economic conditions although the crisis is not over yet, Chief Executive Robert Iger said on Wednesday.Source: Reuters: Business News | 10 Sep 2008 | 12:20 pm Playa del Carmen Real Estate Management and Vacation Condo Rental FirmPLAYA DEL CARMEN, Mexico, Sept. 10 /PRNewswire/ -- BRIC International ( href="http://www.bricrental.com">http://www.bricrental.com ) is a full-service, high-end real...Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Sep 2008 | 12:20 pm Lehman loses $3.9bn in third quarterLehman Brothers on Wednesday confirmed plans to spin off the majority of its commercial real estate assets and sell a majority stake in its asset management unit as the beleaguered Wall Street bank reported...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 12:06 pm Lehman (LEH) Impresses No One
Lehman "intends" to sell 55% of its money management unit. Lehman "intends" to spin off to its shareholders $25 billion to $30 billion of its commercial real estate portfolio into a separate publicly- traded company, Real Estate Investments Global. It is very hard to see the value in the asset that stockholders will get from that. Lehman will also do the regular things to save money. It will cut its dividend to $.05 to save $450 million. But, the bad news was genuinely bad. Lehman said it is expected to incur negative gross mark-to-market adjustments on assets of ($7.8) billion, including gross negative mark-to-market adjustments of ($5.3) billion on residential mortgage- related positions. To put a point to it, there was nothing in the news to say that Lehman had done anything material to save its hide. It would still crater and send shareholders under. With its stock down 45% yesterday, this was the best Lehman could do to keep the shares from trading down another 50% today. It gambled that it could avoid that by releasing marginally good news. Almost nothing has changed. Lehman is still operating on the ledge. If credit markets get worse, the Dutch Boy can't save the city. Douglas A. McIntyre Source: 24/7 Wall St. | 10 Sep 2008 | 11:55 am Financials weigh on European boursesEuropean equity markets fell for a second session on Wednesday morning after Lehman Brothers, the US investment bank, announced an estimated net third quarter loss of $3.9bn and a comprehensive restructuring,...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 11:54 am Prezzo to open fewer outlets as downturn bitesPrezzo, the AIM-listed Italian restaurant operator, is to slow down its ambitious opening programme of the past few years after conceding that it has entered “an extended period of more challenging conditions”.Source: Latest Business News from Times Online | 10 Sep 2008 | 11:52 am Lehman Earnings, Rewards For Bad Behavior (LEH)Lehman Brothers (NYSE: LEH) has finally pre-announced its earnings at -$5.92 EPS. First Call had estimates at worse than -$3.00 but no one is using that estimate based upon the recent mudslide and rumors. The company is selling a majority stake in its Neuberger Berman asset management unit and said it was going to spin off its commercial mortgage assets to shareholders and will have limited exposure there. It also cut its annual dividend to $0.05 and the company is exploring strategic alternatives. Lehman is also saying its tier-1 capital ratio is 11% and is taking $5.3 Billion in gross residential mortgage related adjustments. Its gross mark to market adjustments are a negative of $7.8 Billion and net mark to market adjustments were $5.6 Billion. Shares closed way down yesterday at $7.79 and are trading around $8.70 in the early pre-market hours. While it’s up now, this is anyone’s guess after the recent slide. It doesn't sound like it has any merger deal being imminent based on the data seen so far. Dick Fuld's days appear very limited. Jon C. Ogg Source: 24/7 Wall St. | 10 Sep 2008 | 11:52 am FTSE hit by financial jittersLondon equities fell on Wednesday, as worries about the health of the financial sector crossed the Atlantic in the wake of confirmation that Lehman Brothers' talks with a big potential investor had hit...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 11:48 am Top Pre-Market Analyst Upgrades (BNI, CERN, DECK, EV, HWAY, IPAR, NSC, RF)There were other upgrades but these are the ones we are seeing having an impact on shares this morning:
Jon C. Ogg Source: 24/7 Wall St. | 10 Sep 2008 | 11:38 am Top Pre-Market Analyst Downgrades (CPHD, DRIV, FDRY, MAN, MLM, MPEL, MPS, SMOD, VMC)These are some of the top analyst downgrades we are seeing affecting shares of stock this morning:
Jon C. Ogg Source: 24/7 Wall St. | 10 Sep 2008 | 11:35 am Financial Downgrades (BAC, BBT, CLMS, CMA, FITB, BEN, STI, VLY)There were more downgrades in financial stocks, but these were the larger names that saw estimates or ratings cut by analysts this morning:
Jon C. Ogg Source: 24/7 Wall St. | 10 Sep 2008 | 11:33 am End to World Bank's Chad oil dealThe World Bank pulls the plug on an oil deal with Chad after a row about how the profits should be spent.Source: BBC News | Business | World Edition | 10 Sep 2008 | 11:32 am Norway blacklists miner Rio TintoNorway bans its sovereign wealth fund from investing in mining giant because of environmental concerns.Source: BBC News | Business | World Edition | 10 Sep 2008 | 11:30 am Lehman Makes Its StandWith Lehman Brothers' stock price under pressure and growing doubts about its ability to survive, investors were looking for C.E.O. Dick Fuld to hit a home run today. Yes, Lehman announced steps that will significantly reduce its exposure to real estate. But without a big investor or a big deal to ease worries about the firm's strength, those are only baby steps. It is still shopping 55 percent of its investment management division, known by its crown jewel Neuberger Berman. The firm said it was in talks with potential buyers. But reports of a possible sale have been circulating for nearly months: the promise of a deal long foretold is unlikely to cheer shareholders. Ratings Revamp MBIA: Moody's Twists the Knife Is There Hope Yet for MBIA? Source: Portfolio.com: Top 5 | 10 Sep 2008 | 11:30 am Beware Employer Stock in 401(k) (SmartMoney Magazine)Lessons learned from Enron? Nope. Employer stock still causes problems in 401(k)s.Source: SmartMoney.com | 10 Sep 2008 | 11:16 am Old Mutual chief resigns on fresh writedownOld Mutual on Wednesday announced its chief executive, Jim Sutcliffe, had resigned as the South African insurer shocked the market with yet another profit warning following a further $135m in writedowns...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 11:12 am Opec supply cut sparks criticismOil prices held above the $100 a barrel level on Wednesday after Opec surprised investors by announcing an output cut because the cartel views the market as oversupplied.Opec has nominally committed to...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 11:06 am Europe predicts UK will fall into recessionA recession in Britain is looming, according to the European Commission (EC), which today cut its growth forecast and increased its inflation expectations for the eurozone.Source: Latest Business News from Times Online | 10 Sep 2008 | 11:01 am KDB suspends talks with Lehman BrothersKorea Development Bank on Wednesday confirmed that it had suspended talks to invest in Lehman Brothers, just hours before the beleaguered US bank is set to announced its third-quarter results.In a statement,...Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 10:59 am EU Slashes Growth Forecasts for 2008The European Union sharply cut its 2008 growth forecasts, saying that inflation would be worse than expected.Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Sep 2008 | 10:56 am EU sees lower euro zone 2008 growth, higher inflationBRUSSELS (Reuters) - Euro zone economic growth will halve in 2008 from 2007 and inflation will be much higher because of financial turmoil, soaring commodity prices and housing market shocks, the European Commission said on Wednesday.Source: Reuters: Business News | 10 Sep 2008 | 10:55 am Cern atom smasher set in motionThunderous applause greeted the completion of the first circuit of the world's most powerful atom smasher, set in motion for the first time at the start of a 20-year experiment designed to unlock the universe's secretsSource: FT.com - US homepage | 10 Sep 2008 | 10:43 am Surprise Opec cut pushes oil above $100Crude oil prices climbed back over the critical $100 level after Opec surprised the oil markets by announcing that it would make a small but symbolic reduction in its output; the move was attacked by the west's energy watchdog for running the risk of keeping prices at very high levelsSource: FT.com - US homepage | 10 Sep 2008 | 10:34 am IKEA year sales rise but economy a drag: report (Reuters)
Source: Yahoo! News: Business | 10 Sep 2008 | 10:28 am As Chinese Slow Car Buying, Detroit Can Panic (GM)(F)(WMT)(DELL)
It turns out that, even though the economy in China is still doing well, the consumers in the world's most populated country are cutting down on picking up new cars. Among the reasons for this may be that the Chinese who can afford cars have them. The data on that point is not readily available. August car sales in China did fall 6% in August. According to The Wall Street Journal, "In 2007, China's vehicle sales rose 21.8%." That news has to be a blow to Detroit, but it may give the industry leverage in Washington when GM (GM), Ford (F) and Chrysler hit the Beltway for the $50 billion in loan guarantees. They can claim that they have to count on more fuel-efficient cars to jump start US sales now that the rest of the world is not so attractive. China was supposed to be the market that got the global auto industry back on track. It was supposed to become the world's largest car market in the next two or three years. It looks like the car companies are going to have to come back to the US and hope against hope that the market turns up here. Douglas A. McIntyre Source: 24/7 Wall St. | 10 Sep 2008 | 10:25 am Coca-Cola bid for Huiyuan to test China antitrust lawHONG KONG (Reuters) - Coca-Cola Co plans to seek approval under China's antitrust law for its $2.5 billion bid for top domestic juice maker Huiyuan, the final obstacle to what would be the largest foreign takeover of a local firm.Source: Reuters: Business News | 10 Sep 2008 | 10:17 am The US Economy: Sunny Days Ahead
Alan Greenspan went on CNBC late yesterday to flog the paperback version of his ancient book "The Age of Turbulence". The book is so old that nothing in it is still relevant, but Greenspan needs the money. During his TV appearance he made the comment that the chances of a US recession were 50% or greater. Not bad given that most experts think the economy is already moving into negative territory. At the same time, the Duke University/CFO Magazine survey of about 1,300 CFOs found that their good feelings about the economy are growing. According to Reuters, "Those saying they are less optimistic fell to 41.5 percent, from more than half in the previous survey and more than 72 percent in March." Somehow Greenspan and the financial chiefs of many companies believe that it will soon be easier for consumers and businesses to get loans. The credit crisis will suddenly disappear. The costs of basic commodities which are driving down gross margins at many enterprises will also quickly abate. Housing prices will bottom. The world will get suddenly improve. It is the job of corporate leaders to make their shareholders believe that their companies are under control and they they can "manage" through hard times. This past April several bank and brokerage executives said the the credit markets would get better soon. Another wave of earnings from financial firms will show that they were wrong about both the second and third quarters. Economists like Greenspan like to take the middle figures in the bell-shaped curve. It is safest that way. Fringe lunatics like NYU professor Nouriel Roubini can't be trusted. Their visions of the world are too dark and ominous. In the face of bad news, it may be human nature to grasp the modicum of data that shows the world is not going to hell. But, hell is coming and wishful thinking is losing its power. Douglas A. McIntyre Source: 24/7 Wall St. | 10 Sep 2008 | 10:11 am CFOs more optimistic about U.S. economy: surveyNEW YORK (Reuters) - Chief financial officers are more optimistic about the direction of the U.S. economy, but remain concerned about consumer demand and weak credit markets, according to a quarterly survey.Source: Reuters: Business News | 10 Sep 2008 | 9:59 am Coca Cola in China antitrust caseCoca Cola is to seek Chinese antitrust approval for its bid to buy the country's leading juice firm Huiyan, marking the first case of its kind.Source: BBC News | Business | World Edition | 10 Sep 2008 | 9:54 am UK's trade gap narrows slightlyThe UK's trade deficit with the rest of the world stood at £7.8bn in July, less than the £8.8bn in June.Source: BBC News | Business | World Edition | 10 Sep 2008 | 9:46 am OPEC Taps The Brakes
The cartel cut daily production by 520,000 barrels a day to 28.8 million. While oil prices moved up a tiny bit on the news, no one in the market panicked. The change is almost too small to matter. Oil consumption has slowed as the global economy has cooled off. Americans are walking and riding bicycles just as the Europeans have done for years. OPEC's announcement is more of a warning than a move of aggression. The signal says that, if oil moves down further, the radical elements among its members will have their way. Venezuela and Iran will get their wish. Production could be slashed before the end of the year. OPEC has calculated that demand will actually not fall any further. There is still no indication of a slowing of crude imports in China and India. Russia may use oil as a bargaining chip as part of its new, aggressive stance toward the West. The winter across the Northern Hemisphere may still be relatively cold. A token drop in output still allows OPEC to avoid being viewed as the villain. The growth in the demand for oil might be dropping a bit. But, a new study which Congress intends to use to attack energy traders indicates that speculators are to blame for much of the turmoil in the crude markets. That should bolster OPEC's position that it does not wear the black hat. OPEC is remaining nearly mute. A token gesture is all that it needs to telegraph that it is not prepared to live with oil prices below where they are now. It would cost its members too much money. Douglas A. McIntyre Source: 24/7 Wall St. | 10 Sep 2008 | 9:39 am US budget deficit seen at $438bnThe US budget deficit is expected to hit $438bn next year, according to estimates from the Congressional Budget Office.Source: BBC News | Business | World Edition | 10 Sep 2008 | 9:35 am Berkshire tightens insurance for bank deposits: report(Reuters) - Billionaire investor Warren Buffett's Berkshire Hathaway Inc has told one of its units to stop insuring bank deposits above the amount guaranteed by the U.S. federal government, the Wall Street Journal reported.Source: Reuters: Business News | 10 Sep 2008 | 9:33 am RAB Capital stops investors taking money from Special Situations FundRAB Capital, the London-listed hedge fund group, plans to freeze clients' redemptions from its flagship Special Situations fund after the fund lost almost 50pc this year.Source: Telegraph Business | 10 Sep 2008 | 9:30 am Old Mutual chief quits as insurer unveils more US woesOld Mutual chief executive Jim Sutcliffe has stepped down from the insurer with immediate effect.Source: Telegraph Business | 10 Sep 2008 | 9:23 am Old Mutual loses on Freddie Mac rescueUK-listed South African insurer Old Mutual writes down $135m of stock in the two striken US mortgage giants.Source: BBC News | Business | World Edition | 10 Sep 2008 | 9:13 am Old Mutual chief leaves after US mortgage hitOld Mutual, the London-listed life insurer, today revealed that its chief executive has resigned and it expects to make a $135 million ($£76.4 million) writedown in its US life business as a result of the US Government's $200 billion bailout of Fannie Mae and Freddie Mac.$Source: Latest Business News from Times Online | 10 Sep 2008 | 8:27 am Next says slowdown to last for 18 monthsThe chief executive of Next added to the gloom and doom surrounding the high street today by predicting that the current slowdown could last for a further 18 months.Source: Latest Business News from Times Online | 10 Sep 2008 | 7:48 am Chinese inflation falls sharplyInflation in China dropped sharply in August for the fourth month in a row, giving more room for policy-makers to take measures to boost the economy if growth begins to slow sharplySource: FT.com - US homepage | 10 Sep 2008 | 7:40 am Tribune Co published link to old story that hit UAL(Reuters) - Tribune Co said on Tuesday a link to a six-year-old article on UAL Corp's 2002 bankruptcy had appeared on the South Florida Sun-Sentinel's website before other news organizations mistakenly presented the article as new.Source: Reuters: Business News | 10 Sep 2008 | 7:33 am Wachovia battens down the hatchesThe No. 4 U.S. bank will cut expenses and reduce risk exposure in an attempt to weather the mortgage failure storm.Wachovia Corp., the fourth-largest U.S. bank, will cut expenses next year by $1.5 billion and is "tapping the brakes" on risk, Chief Executive Robert Steel told investors Tuesday. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am A Monrovia firm's tiny planes have growing cloutAeroVironment Inc.'s unmanned spy craft become vital reconnaissance tools on the battlefield.Standing amid a grove of pepper plants in Thousand Oaks last week, Christopher Thompson revved up his plane's tiny 6-inch propeller and then gently tossed it into the sky, much as weekend hobbyists fly their airborne toys. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Fannie and Freddie get a loan, taxpayers get the debtTaxpayers are sick of getting stuck with the check for someone else's banquet.The conventional wisdom on the multibillion-dollar federal government bailout of mortgage giants Fannie Mae and Freddie Mac is that they're just too big to let fail. The two companies own or guarantee about half of the country's $12 trillion in mortgage debt. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Wall Street sinks on concerns about Lehman Bros.The Dow tumbles 280 points as the investment bank's growing troubles extinguish the optimism created by the government's rescue of Fannie Mae and Freddie Mac.The optimism about the financial sector that followed the government's weekend rescue of Fannie Mae and Freddie Mac lasted all of one day. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am NBC and Apple are back in tuneThe companies end their dispute over the pricing of TV shows downloaded from the online store.NBC Universal ended its battle with Apple Inc. on Tuesday, restoring some of the most downloaded TV shows to the iTunes store. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Ads on your cellphone? Get used to itAdvertising is a funny thing. You say you hate it, but then you end up laughing out loud at that Jack in the Box commercial or humming the McDonald's jingle when you're in the shower (and lovin' it). We're accustomed to ads on TV and the Internet. Now analysts say we don't even mind advertising on our cellphones.Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Mortgage firm Countrywide, in response to alleged data breach, offers free credit monitoringAs many as 2 million loan applicants may have had their personal information stolen, the FBI says.Countrywide Financial Corp. is offering two years of free credit monitoring to customers whose sensitive personal information, including Social Security numbers, allegedly was stolen from the home lender's computer files. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Pending home resales fall 3.2%Harder-to-get loans keep potential buyers from taking advantage of lower prices.Fewer Americans signed contracts to purchase previously owned homes in July as harder-to-get financing kept would-be buyers from taking advantage of lower prices. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am 8 student lenders agree to adopt code of conductThe move, which comes after an investigation by the New York attorney general's office, bans deceptive marketing practices.Eight student loan companies agreed to adopt a code of conduct that bans deceptive marketing practices -- such as offering prizes to students who sign up for loans -- after an investigation by the state of New York, the state attorney general said Tuesday. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Key exec's sudden exit spooks investors in IHOP parentShares fall 26% on the departure of Thomas Conforti, chief financial officer and a key strategist for Glendale-based DineEquity.The sudden departure of the chief financial officer and key strategist of the Glendale company that owns the Applebee's and IHOP restaurant chains sent shares of DineEquity Inc. tumbling 26% on Tuesday. Source: L.A. Times - Business | 10 Sep 2008 | 7:00 am Berkshire tightens insurance for bank deposits: report (Reuters)
Source: Yahoo! News: Business | 10 Sep 2008 | 6:19 am Oil falls back towards $100 despite Opec cuts$Oil prices headed back towards a five-month low this afternoon in spite of a surprise decision by Opec, the 13-nation cartel of oil producing nations, to cut daily supplies by 520,000 barrels.Source: Latest Business News from Times Online | 10 Sep 2008 | 6:08 am Currency: Dollar mixed ahead of RBNZ decisionThe New Zealand dollar rose against the Australian dollar on a day that another wave of risk aversion swept through global markets. The NZ dollar was at A82.98c at 5pm, up from A82.40c at 5pm yesterday. Around 8am it was at four-month...Source: New Zealand Herald - Business | 10 Sep 2008 | 5:25 am Property prices keep falling - down 5.7pc in AugustProperty values are continuing their downward journey, with new August real estate figures showing a nearly 6 per cent fall in national median prices. The number of properties sold in August was the lowest monthly total in 26 years...Source: New Zealand Herald - Business | 10 Sep 2008 | 4:25 am Lombard explains position ahead of annual meetingIn anticipation of a grilling from shareholders at its annual meeting, Lombard Group today said the hard truth was that "New Zealanders have fallen out of love with property". The group's subsidiary Lombard Finance was put into...Source: New Zealand Herald - Business | 10 Sep 2008 | 4:00 am A Brand-New Game PlanHow much is the power of creation worth? But the longer-lasting potential could be from other revenue streams not previously exploited by videogames. For one, E.A. is betting that the creative nature of the game will lend itself to robust brand extensions and licensing deals. “User creativity is one of the core tenets of Spore, and we want to give people the ability to share that with their friends,” says Patrick Buechner, vice president of marketing for E.A.’s Maxis division, which developed Spore. To that end, the company has signed with outside vendors so that players can take the creatures they design and put them on T-shirts, mugs, and other merchandise. E.A. has also struck an exclusive agreement with YouTube to allow people to upload clips of their creations to the popular video-sharing site, with the two companies sharing the ad revenue generated by the traffic Though E.A. hasn’t officially announced such a marketplace, it’s widely assumed that it’s just down the road. In July, Electronic Arts C.E.O. John Riccitiello hinted during a conference call that they were already working on implementing some version of these microtransactions. “The game is all about creating cool stuff,” says Pachter. “A marketplace for that stuff seems like a natural. And the intriguing thing about that is that it would be a brand-new business model for games.” Activision: Driving EA Crazy; Upcoming CEO Interview Game Boy Big Loot From Grand Theft Source: Portfolio.com: Top 5 | 10 Sep 2008 | 4:00 am My Brain Makes Me NervousWe've all had moments when our hearts are pounding like a Jamaican barrel drum and our palms are clammy; when our nerves are fraying at moments when we need to be sharp and strategic to save ourselves.Evolution, however, has given us an intricate brain designed to detect dangers that confronted our forebearers millennia ago: the snarl of a saber tooth tiger, say, or the crack of lightning on the veldt. Our brains aren't made to deal with the equally vicious snap of a boss on a rampage, or the sudden realization that you've been called on to give an impromptu presentation to a zillion-dollar client in front of the executive board of the company. Deep in the tunnel of a functional magnetic resonance imaging (f.M.R.I.) machine at Stanford University, my brain is being scanned as it relives one of the most anxious moments in my career. It happened years ago, when I was a junior correspondent for Life magazine discussing one of my first major stories, a possible cover, in a staff meeting. As I was being scanned in the f.M.R.I., researchers flashed a series of short statements on a monitor that recounted my recollection of that event. I can read the snippets inside the machine. In the staff meeting, colleagues had been saying I'd done a great job on the story, when the managing editor blurted out that another reporter would write it and get the credit. The suddenness of this put-down felt like an ancient lightning bolt flashing close enough to singe me. I couldn't believe it. Life, like its sister magazine Time, used to routinely have one journalist report a story and another write it, but this had become rare. As the meeting continued, I felt my heart racing and my gut contracting. I felt ashamed, and I'm sure my face was red. I knew I should say something to this editor who did look remarkably like a saber tooth with glasses, though without the fangs. I needed to stick up for myself, but my most overriding desire was to flee. Scientists have long been fascinated by this reaction to episodes of social stress, particularly for those with social phobias that have reactions so extreme they become debilitated. Until recently, the neural mechanisms of anxiety weren't well understood; nor was it clear how our brains cope with trying to mitigate its affects. That is, how we learn to use our remarkably adaptive brains to respond in a manner more appropriate to the 21st century. Inserting people's brains into an f.M.R.I.—which reads blood flows in our gray matter that indicate activity in certain neural regions—has offered some intriguing clues. My head was recently scanned by clinical psychologist Philippe Goldin, a researcher in the lab of James Gross, director of the Stanford Psychophysiology Laboratory. Goldin and his team are studying 30 "healthy controls" and about 60 social phobics in an effort to plot the pathways of anxiety—and, more important, how people are able to damp down their impulses to fight or flee. On the monitor, the story of my mortification is interrupted by a single line of words in bold:
I read more of my story, then this line pops up:
Two primary regions of the brain show increased blood flow in the scanner—to use the vernacular, they "light up"—in response to an anxious or frightening situation. One is the amygdala, which is associated with emotions; the other is the hypothalamus, which gets you ready to take action by increasing your heart rate, respiration, and sweating. With my amygdala and hypothalamus blazing, Goldin and his colleague Kelly Werner introduced the second part of the experiment: They asked me to try to modulate my anxiety, to use coping mechanisms to settle myself down, if I can. I'm supposed to be a "healthy control" for this experiment, but I'm fully aware that up to 10 percent of supposedly healthy volunteers in f.M.R.I. studies turn out to have behavioral problems that show up on the scans. Since anxiety runs in my mother's family, and I used to get very anxious when I was younger, I secretly wonder: Will I turn out to have issues I've tried to bury deep in my amygdala or some other recess of my brain? I do what Goldin has asked: I tell myself in the scanner that I'm not a loser; that I do stand up for myself. In fact, back in the managing editor's office, I did speak up, telling him I'd worked hard on that story and deserved to write it. I also suggested that next time he tell me first before announcing it to the staff. The editor responded by looking me over like he'd never noticed me before. He said I was right, he should have come to me first, and that I was ready to write the story. But changing his mind didn't change his decision—I'd get a reporting byline, but the other guy would write it. "Next time, though, the byline will be yours," he said. I kept my cool long enough to casually walk out of his office. Then I ran to the men's room, and nearly threw up. This episode is a key moment for me in learning to push down my anxiety to the point that it bothers me far less today—though it took years of similar episodes. My struggle to overcome anxiety is exactly what Goldin and Werner are measuring in the f.M.R.I. They can actually see the pathways lighting up from the frontal lobe—the seat of rational thinking, and where we make decisions—essentially telling the amygdala to settle down. "The amazing thing is that the brain can make changes," says Goldin. "Most of this happens in the amygdala, and it can be tempered to learn and adapt." My results did show adaptation in action. When I read my story and saw the lines about being a loser, my brain grew anxious. But I was able to modulate its reaction—to tell my amygdala to chill out. I was relieved, although given that anxiety still lurks in the back of my mind in certain circumstances, I don't entirely believe that I'm always able to damp it down. I didn't participate in the rest of the Gross lab's experiment, in which researchers trained healthy and unhealthy subjects in three ways—traditional psychotherapy, meditation, and exercise—to see if they can learn to modulate their anxiety. The experiment continues as the subjects are scanned to see how their brains respond and hopefully adapt to the therapies. This experiment will be described in greater detail in the upcoming book: Experimental Man: What One Man's Body Reveals About His Future, Your Health, and Our Toxic World, due out in March 2009.Related LinksMad Money Are You Management Material? Greenspan: No Fan of The Entity Source: Portfolio.com: Top 5 | 10 Sep 2008 | 4:00 am Shakeup in management at ANZANZ has announced a middle management shakeup in Australia to reduce the layers of managers between the CEO Mike Smith and frontline staff. Newspapers in Australia reported the reorganisation would cost hundreds of middle manager...Source: New Zealand Herald - Business | 10 Sep 2008 | 1:00 am In Brief - TuesdayKimberly-Clark (KMB), the consumer products maker, climbed 2% to 65.23 after Citigroup upgraded it to a buy, contending it will benefit from a...Source: Investor's Business Daily: BUSINESS | 10 Sep 2008 | 12:54 am Trends & Innovations - TuesdayWeight-loss surgery saves moneySource: Investor's Business Daily: BUSINESS | 10 Sep 2008 | 12:54 am Diversified Maker Of Chemicals Blossoms As Agriculture BoomsWhat do you get when you add new ingredients to a growing business mix?Source: Investor's Business Daily: BUSINESS | 10 Sep 2008 | 12:54 am Business Briefs - TuesdayGoogle responds to privacy fears. The Internet search king said it will cut the time period that it stores data about users' search requests to 9...Source: Investor's Business Daily: BUSINESS | 10 Sep 2008 | 12:54 am After The Close - TuesdayAEROVIRONMENT (AVAV), a maker of small unmanned aircraft, said Q1 EPS rose 22% to 22 cents, beating views by 4 cents. Sales grew 9% to $54 mil,...Source: Investor's Business Daily: BUSINESS | 10 Sep 2008 | 12:54 am Taxpayers net £254m from final QinetiQ saleThe controversial privatisation of defence research group QinetiQ has finally been completed after the Government sold its remaining 18.9pc, raising £254m for the taxpayer after costs.Source: Telegraph Business | 10 Sep 2008 | 12:01 am Economic slump putting off British entrepreneursFifty thousand fewer businesses will start up this year as the economic slump undermines would-be entrepreneurs' appetite for taking risks, according to BarclaysSource: Telegraph Business | 10 Sep 2008 | 12:01 am Seven-hour LSE blackout caused by double glitchThe London Stock Exchange's seven-hour computer blackout was caused by a software problem rather than a high volume of trading, an investigation has revealed.Source: Telegraph Business | 10 Sep 2008 | 12:01 am CurrenciesCurrenciesSource: Telegraph Business | 10 Sep 2008 | 12:01 am Blown fuse at Stock Exchange comes to defence of GovernmentBudget deficit of up to £100bn hovering over the UK economy - so what does the Government do? It sells its £250m stake in the UK's leading defence research company QinetiQ.Source: Telegraph Business | 10 Sep 2008 | 12:01 am Donovan to quit in Vodafone shake-upVodafone'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 | 10 Sep 2008 | 12:01 am City news (Mon-Fri)City news (Mon-Fri)Source: Telegraph Business | 10 Sep 2008 | 12:01 am Blue Chip victims start court bid todayA large group of Blue Chip victims who bought into the huge Bianco apartment project being developed in Auckland begin litigation today in an attempt to escape buying units. Daniel Grove, a barrister acting for the investors, said...Source: New Zealand Herald - Business | 10 Sep 2008 | 12:00 am N Korean leader 'may have had stroke'The US believes that Kim Jong-il, the North Korean leader, might have suffered a "health crisis" after he failed to appear at a key military parade to commemorate the 60th anniversary of the repressive communist stateSource: FT.com - US homepage | 9 Sep 2008 | 11:37 pm Cost of US loans bail-out emergingThe US began to face the financial consequences of the bail-out of Fannie Mae and Freddie Mac after Congress's budget watchdog said the housing giants' operations should sit on the government's books and the cost of insuring against a US default crept higherSource: FT.com - US homepage | 9 Sep 2008 | 11:34 pm Terms of trade down less than expected - 0.5 pc for the quarterNew Zealand's terms of trade fell a smaller than expected 0.5 per cent in the in the June quarter, as high oil prices lifted the cost of imports. Publishing the data, Statistics New Zealand (SNZ) said that despite the fall, which...Source: New Zealand Herald - Business | 9 Sep 2008 | 11:30 pm Wellington rents outpace AucklandRents for three-bedroom houses in Wellington have risen 18 per cent since last May as incomes and employment growth in the home of central government has outpaced the rest of the economy. Rents in the capital for three-bedroom...Source: New Zealand Herald - Business | 9 Sep 2008 | 11:30 pm Need to know: Cobra Beer bid ... Renault cuts ... BG Group defeatEconomicsSource: Latest Business News from Times Online | 9 Sep 2008 | 11:22 pm Apple unwraps its Christmas offerings with a new range of iPodsMousetrap blog: what we thought of the new iPods | Apple owns up to iPhone problems I Video: Jobs on the iPodSource: Latest Business News from Times Online | 9 Sep 2008 | 11:11 pm NBC agrees to use Google TV ads for networksGoogle is to begin selling advertisements on some of NBC Universal's cable networks.Source: Latest Business News from Times Online | 9 Sep 2008 | 11:02 pm Dominion Finance put into receivershipAiling finance company Dominion Finance Group (DFG) has been put into receivership. The company owes 6055 debenture holders $224 million. Louise Edwards, chief executive of trustee Perpetual Trust said the decision was reached...Source: New Zealand Herald - Business | 9 Sep 2008 | 10:45 pm NZ Shares: Sharp early fall on US equitiesThe New Zealand sharemarket opened sharply lower after stocks plunged in the United States as concerns were reignited about the broader US financial sector. Around 10.10am the benchmark NZSX-50 market was down 29.81 points, or...Source: New Zealand Herald - Business | 9 Sep 2008 | 10:39 pm Boeing strike may threaten new jet test flightCHICAGO - If investors are hoping for a silver lining in the machinists strike against Boeing, it is this: suppliers will have time to untangle problems that have delayed the company's long-awaited 787 jetliner. But some analysts...Source: New Zealand Herald - Business | 9 Sep 2008 | 10:30 pm Mini Cooper's Clubman Has 5 Seats, Smart Design, `Suicide' DoorSource: Bloomberg - All Podcasts | 9 Sep 2008 | 10:05 pm Toronto stocks hit hard by slumping commodities (Reuters)
Source: Yahoo! News: Business | 9 Sep 2008 | 10:01 pm S&P 500 plunges in worst day this yearFinancials led the fall-out from deepening uncertainty over Lehman Brothers' ability to strengthen its balance sheet, amid fears it too could struggle to raise fresh capital if so requiredSource: FT.com - US homepage | 9 Sep 2008 | 9:53 pm 8 Stocks With Low Price/Sales Ratios (Stock Screen)We found eight stocks, including a beer maker's, with attractively low P/S ratios.Source: SmartMoney.com | 9 Sep 2008 | 9:30 pm VIX Index of U.S. Stock Option Prices Advances 12.5% to 25.47Source: Bloomberg - All Podcasts | 9 Sep 2008 | 9:06 pm Robert Wilder Discusses Sustainable Transportation ETFSource: Bloomberg - All Podcasts | 9 Sep 2008 | 9:01 pm Bureaucracy slows Ukraine's TB fightUkraine used to be known as the breadbasket of the Soviet Union. Now it holds another distinction: Home to one of the world's largest pools of tuberculosis. Frank Browning reports on publicly and privately funded efforts to deal with the disease.Source: Marketplace | 9 Sep 2008 | 8:59 pm Our sharp listeners get to the pointKai Ryssdal reviews letters from our listeners about acupuncture, Social Security's disability benefits, David Frum's take on immigration policy, and the correct way to pronounce "nuclear."Source: Marketplace | 9 Sep 2008 | 8:59 pm '39 Clues' goes after Harry's audienceA new children's book series called "The 39 Clues" is being marketed with a website, a movie deal and $100,000 in prize money for readers. But after Harry Potter can it still cast a spell over kids? Ashley Milne-Tyte reports.Source: Marketplace | 9 Sep 2008 | 8:59 pm Target hopes bodegas hit PR bullseyeTarget is opening four stores in Manhattan the size of designer boutiques -- and then closing them in a few days. It's part of a publicity campaign the company hopes will drive customers to its big stores and website. Jeremy Hobson reports.Source: Marketplace | 9 Sep 2008 | 8:59 pm Public transportation ridership picks upA mass transit group says public transportation ridership was up 5% this spring over a year ago, due to $4-a-gallon gas. Meanwhile, a Senate committee is considering new transit funding. Nancy Marshall Genzer reports.Source: Marketplace | 9 Sep 2008 | 8:59 pm Is Lehman Bros. next up for a bailout?If the global financial system keeps going the way it has been, Lehman Brothers is going to need help. Shares fell almost 45% today as investors worried that the Wall Street investment bank doesn't have enough money in the bank. Stacey Vanek Smith reports.Source: Marketplace | 9 Sep 2008 | 8:59 pm Anita O'Day's Manager Discusses His Documentary of SingerSource: Bloomberg - All Podcasts | 9 Sep 2008 | 8:44 pm ETFs Sell Off Despite Fannie/Freddie Deal (Daily ETF Wrap-Up)A day after the Freddie/Fannie rally, ETFs experience a big selloff.Source: SmartMoney.com | 9 Sep 2008 | 8:42 pm Four Places to Seek Help From While Job Hunting (Deal of the Day)From career coaches to community programs, how to get a leg up in a slow job market.Source: SmartMoney.com | 9 Sep 2008 | 8:29 pm Easy Come...A day after the bailout of the mortgage lenders sparked a rally, stocks gave back all of their gains.Source: SmartMoney.com | 9 Sep 2008 | 8:26 pm Is Fannie or Freddie in your portfolio?Do your retirement funds have any Fannie Mae or Freddie Mac stock in them? If so, you may want to check how much you've lost. Kai Ryssdal did, and he talks with Marketplace Money host Tess Vigeland about the financial hit you might not be aware of.Source: Marketplace | 9 Sep 2008 | 8:16 pm Orenbuch Says $60-100 Billion Needed to Capitalize GSEsSource: Bloomberg - All Podcasts | 9 Sep 2008 | 7:51 pm Freddie, Fannie Scam `Hidden in Broad Daylight'Source: Bloomberg - All Podcasts | 9 Sep 2008 | 7:49 pm Calomiris Says Treasury Made Right Move on FannieSource: Bloomberg - All Podcasts | 9 Sep 2008 | 7:46 pm Small-Cap Rally Hints at Economic Turnaround (Ticked Off)The quiet rally in smaller stocks could hint at a coming economic turnaround.Source: SmartMoney.com | 9 Sep 2008 | 7:34 pm Gazprom under threat after regulator fineGazprom's hold on Russia's gas industry appeared to be weakening after a Russian regulator said the state-controlled gas export monopoly would be fined for restricting access for an independent gas producer to its vast pipeline networkSource: FT.com - US homepage | 9 Sep 2008 | 7:30 pm Lights Out for Lehman?Bear Stearns…Fannie Mae…Freddie Mac…and Lehman Brothers? Standard & Poor's said it may lower Lehman's short- and long-term credit ratings because the "precipitous decline" in the firm's share price has led to "heightened uncertainty about Lehman's ability to raise additional capital." S&P analyst Scott Sprinzen, however, characterized Lehman's near-term liquidity as "satisfactory." Cue the Optimists When Bill Met Freddie Fannie's Fatalities Source: Portfolio.com: Top 5 | 9 Sep 2008 | 7:00 pm Today's 3 Picks: LEH, NYT, MCD (Market Movers)Lehman's Seoul train wreck. Reading between the lines at the Times. Big Mac attack.Source: SmartMoney.com | 9 Sep 2008 | 6:58 pm Bail-out hands Pimco $1.7bn paydayThe Bill Gross-managed Pimco Total Return fund reaped a $1.7bn payday following the US government takeover of home loan giants Fannie Mae and Freddie MacSource: FT.com - US homepage | 9 Sep 2008 | 6:49 pm Don't Celebrate Real Estate's Recovery Yet (Common Sense)How Freddie and Fannie will be managed now isn't clear, while home prices continue to fall.Source: SmartMoney.com | 9 Sep 2008 | 5:52 pm Palin's Problem Isn't the News Media's Elitism: CommentarySource: Bloomberg - All Podcasts | 9 Sep 2008 | 4:44 pm Davis Says Republicans Have Redefined Stakes of ElectionSource: Bloomberg - All Podcasts | 9 Sep 2008 | 4:37 pm Fighting for FannieBeth Ann Wilkinson was a star partner in the big Washington office of Latham & Watkins in 2006, when she took a gamble and joined Fannie Mae as general counsel. At the time, the mortgage company was trying to dig itself out of an $11 billion accounting scandal.At the time, Ms. Wilkinson knew nothing about the mortgage-backed securities at the core of Fannie Mae's business. "I think they were looking for someone who was willing to exercise their judgment and have a good relationship with the regulators," she said then. "And hopefully have a little more humble attitude about the company and its place." But the effort to turn around Fannie has taken a radical, indeed humbling turn: The federal government has seized control of the company and its sibling, Freddie Mac. It is unclear whether Wilkinson will remain with Fannie, or perhaps return to Latham, where she was co-chair of the firm's white-collar and government investigations practice. If she stays, there will be plenty of challenges. The government bailout will result in huge losses for the shareholders of both Fannie and Freddie, and class-action lawyers are already preparing litigation. "We have already been contacted over the last few weeks by several pension fund clients asking us to advise them with respect to their rights vis-à-vis these two companies," says Jerry Silk of Bernstein Litowitz Berger & Grossman in New York. Silk, for one, says one order of business for Fannie's managers would be to release the findings of Morgan Stanley, which was hired by Treasury Secretary Hank Paulson to look at the books of the two companies before the takeover. With lawyers like Silk contemplating lawsuits, Wilkinson's vast experience as a trial lawyer should come in handy. In one of her last cases before joining Fannie, she won a jury trial on behalf of Philip Morris in a product-liability case in a Los Angeles superior court that is on the "judicial hellhole" list of the American Tort Reform Association. But the restoration of confidence may be more important, at this moment, than the litigation dance, and Wilkinson is, according to one former colleague, uniquely talented. "She is one of the few people who has got the whole package," says Leslie Caldwell, a partner with the New York office of Morgan Lewis, who headed up the Justice Department's Enron Task Force. Caldwell and Wilkinson were assistant federal prosecutors together in Brooklyn in the early 1990s. "She's polished, she's smooth, very smart. She's self-deprecating but very confident." Caldwell added that while some inspire confidence but don't deliver, Wilkinson is the real deal. "She conveys a real safe-hand persona," Caldwell says. A self-professed military brat—her father is a retired Navy submarine captain—Wilkinson's first job out of the University of Virginia School of Law in 1987 was with the office of the Army's general counsel, where she participated in the prosecution of a Colombian drug lord for bombing a civilian airliner. Before joining Latham, she was a principle deputy in the Justice Department's Terrorism and Violent Crime Section, where she participated in the trial of Timothy McVeigh and Terry Nichols, plotters of the Oklahoma City bombing. In 2000, she married television reporter David Gregory, who is taking over as anchor of MSNBC's election coverage, ousting Chris Matthews and Keith Olbermann. Calls to Fannie Mae were not returned. Several lawyers, inside the Beltway and out, believe her continued presence would help Fannie Mae regain credibility. Earlier this year, Wilkinson was on the other side of the negotiating table from James B. Lockhart III, director of the newly formed Federal Housing Finance Agency, when Fannie and Freddie sat down to negotiate the settlement of a long-running investigation by New York Attorney General Andrew Cuomo. In March, Cuomo announced a settlement in which Fannie and Freddie, as participants in the secondary market for mortgages, agreed to buy only loans from banks that meet standards to ensure that the appraisals underlying them are independent and reliable. "She's very smart and she's very tough," says William McLucas, chair of the securities department at Wilmer Hale, a former head of enforcement at the Securities and Exchange Commission who has been hired to dig into scandals at Enron, WorldCom, and UnitedHealth Group. "She's got good judgment, she's tough, and she calls it down the middle." Related Links Cue the Optimists Fannie's Fatalities Parsing Paulson: It's a Systemic Thing Source: Portfolio.com: Top 5 | 9 Sep 2008 | 12:30 pm
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The Las Vegas odds were 10-to-1 that OPEC would keep production level. A lot of gamblers lost money.
