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No long-term bank funding from Bank of England, King warnsThe Bank of England will unveil steps to provide short-term “liquidity insurance” to British banks in a bid to keep money markets from seizing up in the event of a crisis, but has no intention of becoming a permanent source of long-term funding, Governor Mervyn King told lawmakers Thursday.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 11:51 am Steel Partners bids for majority stake in NoritzSteel Partners Japan Strategic Fund Offshore LP makes a proposal to acquire a stake of more than 50% in water-heater maker Noritz, saying the move comes as efforts to promote voluntary reform at the company have failed to stir management to action.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 11:51 am Lehman stumbles on broker downgradesNEW YORK (Reuters) - Lehman Brothers tumbled on Thursday after several brokers downgraded the shares on the investment bank and forecast further losses due to business uncertainty.Source: Reuters: Business News | 11 Sep 2008 | 11:50 am Indications: U.S. stock futures point to sharply lower startU.S. stock futures dropped sharply Thursday, with continues distress about the state of the world economy and of financials in particular tugging on sentiment.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 11:38 am Demand concerns keep oil downOil prices fell Thursday, testing a 5-month low, as the market remained focused on the stronger dollar and slumping demand - ignoring the threat that Hurricane Ike poses to the Texas Gulf Coast.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 11:33 am Travel During Off Season Not Always a Great Deal (SmartMoney Magazine)Sure, prices are cheaper. But maybe that's for a very good reason.Source: SmartMoney.com | 11 Sep 2008 | 11:32 am Movers & Shakers: Thursday's biggest gaining and declining stocksAmong the companies whose shares are expected to see active trade in Thursday’s session are the European insurers as well as Aladdin, Apple, GM, International Rectifier, Kirkland’s, Lehman, New York Times, Rockwell Collins and Spartech.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 11:26 am Early Bird Pre-Market Analyst Upgrades (ALB, AUXL, BIIB, CBEY, HAIN, HWD, LVS, SYMC, TEVA, TWTC, WBSN, WFMI)These are some of the early bird analyst upgrades and positive calls we are seeing this Thursday morning with more than two hours to the open:
Jon C. Ogg Source: 24/7 Wall St. | 11 Sep 2008 | 11:23 am Top Pre-Market Analyst Downgrades (AUDC, BDX, FUL, LEH, MEDX, NVDA, PDLI)These are some of the early bird analyst downgrades and negative calls we are seeing this Thursday morning with more than two hours to the open:
Jon C. Ogg Source: 24/7 Wall St. | 11 Sep 2008 | 11:19 am Lehman survival strategy fails to lift marketsStock markets in Asia fell to their lowest levels in almost three years after Lehman Brothers announced a third-quarter net loss of $3.9bn and plans to pare back its operation on an absence of outside investorsSource: FT.com - US homepage | 11 Sep 2008 | 11:18 am Europe Markets: Shares in Europe decline as financial stocks weighEuropean shares fell for the third straight session on Thursday, with another downbeat performance from financial stocks keeping a rebound for oil producers and miners in check.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 11:17 am Apple bosses settle share lawsuitApple bosses have struck a preliminary deal to settle a lawsuit brought by shareholders over the company's stock option scheme.Source: BBC News | Business | World Edition | 11 Sep 2008 | 11:08 am Selloff looms for stocksStock futures were pointed lower Thursday, indicating a tough start for Wall Street, as the finance sector tried to shake off the Lehman Brothers implosion and investors braced themselves for a slew of economic reports.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 11:08 am No let up in inflation warns KingBank of England governor Mervyn King says inflation is set to exceed government targets once again in August.Source: BBC News | Business | World Edition | 11 Sep 2008 | 11:04 am Russia may use wealth fund to support marketsRussia is considering using money from its national wealth fund and pension fund to support financial markets where necessary in the future, Alexei Kudrin, finance minister said, as the country's stock market inched higher following moves to bolster confidenceSource: FT.com - US homepage | 11 Sep 2008 | 11:04 am Hurricane keeps Gulf production shutteredOil and natural gas producers in the Gulf of Mexico have stopped sending workers, evacuated from offshore rigs because of Hurricane Gustav, back to the platforms as Hurricane Ike approaches, a government agency said Wednesday.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 11:03 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 11:01 am Pacific Harbor Line Becomes First All Low-Emission Railroad in U.S.Fleet of 22 locomotives meets or exceeds EPA's Tier 2 requirements to reduce air pollutants. LONG BEACH, Calif. and LOS ANGELES, Sept. 11 /PRNewswire/ -- Pacific ...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 11:00 am Apple settles option suitRead full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 10:52 am Consumers expect inflation to keep risingConsumers' perceptions of inflation are the worst they have been in nine years, as rising food and energy prices hit household budgets.Source: Latest Business News from Times Online | 11 Sep 2008 | 10:50 am Deutsche Bank eyes rival PostbankDeutsche Bank is in advanced talks to buy a stake in rival Deutsche Postbank from the German postal service Deutsche Post.Source: BBC News | Business | World Edition | 11 Sep 2008 | 10:48 am Asia Markets: Hong Kong, Shanghai indexes at more than one-year lowsAmid a broad slump in Asian markets, stock benchmarks in Hong Kong and Shanghai hit their lowest levels in more than a year on concern about a global economic slowdown and persistent worries about the financial markets.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 10:30 am Saving Private Ryan: The Fed Puts All Hands On Deck For Banks
As the situation at a number of banks and brokerages worsens the government still has not discovered a basic program to salvage the system. To offer a counter-weight to the deteriorating balance sheets of companies which the government believes cannot pile up as serial failures, the Fed is considering opening its doors even wider. According to Bloomberg, "The Federal Reserve may have to increase the cash it provides to banks and brokers, already a record, to help them balance their books at the end of the year." In essence, taxpayers will step in to block the breach in the wall. The open issue is how much the Fed can "give." By IMF estimates there could be another $500 billion in write-offs at banks due to losses on mortgage-backed paper. The Fed might have to provide a substantial portion of that as firms prepare to issue their end-of-the-year earnings. The US government does not have many choices. In the broadest sense, it cannot solve the root problems of falling home prices. Even with its intervention to shore up the two large mortgage agencies, borrowing rates for purchasing homes will not drop substantially as long as banks are gun shy about taking on meaningful risk. Lending from the Fed has not saved the banking system so far. It has put a weak net under some institutions, That has hardly been enough to turn back the need for many banks to raise money though equity offerings, preferred shares, and the sale of key assets. The Fed will almost certainly open its borrowing window because it has no other recourse, which will continue to beg the question of whether good money is following bad. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Sep 2008 | 10:21 am Fed's next move could be to lower ratesWhile the Federal Reserve is widely expected to once again hold a key interest rate at 2% when it meets on Tuesday, there is a growing sense that the Fed may have to cut rates by the end of the year.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 10:12 am Pensions and your portfolioQuestion: How do I view Social Security and my pension as a part of my overall financial picture?Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 10:11 am Bourses sell-off for third sessionFinancials stocks dragged European stock markets lower for a third straight day after a handful of downbeat analyst comments and some deal news that failed to impress investors. Among the leading fallers...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 10:09 am SEC's New York attorney to leave: report (Reuters)Reuters - The U.S. Securities and Exchange Commission's top New York enforcement attorney is expected to leave next month for a law firm, people familiar with the matter told The Wall Street Journal.Source: Yahoo! News: Business | 11 Sep 2008 | 10:08 am SEC's New York attorney to leave: report(Reuters) - The U.S. Securities and Exchange Commission's top New York enforcement attorney is expected to leave next month for a law firm, people familiar with the matter told The Wall...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 10:08 am SEC's New York attorney to leave: report(Reuters) - The U.S. Securities and Exchange Commission's top New York enforcement attorney is expected to leave next month for a law firm, people familiar with the matter told The Wall Street Journal.Source: Reuters: Business News | 11 Sep 2008 | 10:08 am Banks helped foreigners avoid U.S. taxesBig Wall Street investment banks have designed and marketed schemes enabling non-U.S. taxpayers, including offshore hedge funds, to evade millions of dollars in taxes each year on U.S. stock dividends, Senate investigators have found.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 10:08 am Taiwan leads Asian share markets lowerTaiwanese stocks fell to the lowest since December 2005 as investors were disappointed by measures announced to help stem declines in the stock market and bolster economic growth.The weighted index dropped...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 10:07 am Japan's NEC Electronics joins IBM on chip projectTOKYO (Reuters) - Japan's NEC Electronics Corp , the world's No.12 chipmaker, said on Thursday it would team up with IBM and others on next-generation microchips in a bid to beat mounting development costs.Source: Reuters: Business News | 11 Sep 2008 | 10:04 am EU committee votes to cut biofuels targetEU lawmakers have voted to scale back ambitious biofuels targets, cutting the goal for use of crop-based fuel by half to 5 percent of road transport needs by 2020. The vote by the...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 10:03 am Ericsson reveals contract to set up international network for C&WSwedish telecommunications equipment provider Ericsson said on Thursday that it had signed a contract to set up and operate an international mobile phone network for British group...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 10:02 am British retailers Morrison, Home Retail feel the pinchA batch of disappointing reports from U.K. retailers Thursday paints a darkening picture of the consumer environment in Britain.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 10:01 am Salient Partners Announces New Director of Institutional Business DevelopmentHOUSTON, Sept. 11 /PRNewswire/ -- Patricia M. Gammon, who has more than 30 years of institutional investment experience, has joined the Houston wealth management firm of...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 10:00 am 1st Capital Bank Announces Plans for a Full-Service Branch Office in King CityMONTEREY, Calif., Sept. 11 /PRNewswire-FirstCall/ -- 1st Capital Bank (OTC Bulletin Board: FISB) today announced that is has received approval from regulatory authoritiesSource: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 10:00 am U.S. rebound questioned, French growth to slow: LagardePARIS (Reuters) - Questions remain over the sustainability of the U.S. economic recovery, French Economy Minister Christine Lagarde said on Thursday as she played down the risk of recession at home.Source: Reuters: Business News | 11 Sep 2008 | 9:56 am The Death Of OPEC
As the world's largest crude exporter, the kingdom in the desert took its ball and went home. As the Saudis left the building the message was shockingly clear. According to The New York Times, “Saudi Arabia will meet the market’s demand,” a senior OPEC delegate said. “We will see what the market requires and we will not leave a customer without oil." OPEC will still have lavish meetings and a nifty headquarters in Vienna, Austria, but the Saudis have made certain the the organization has lost its teeth. Even though the cartel argued that the sudden drop in crude as due to "over-supply", OPEC's most powerful member knows that the drop may only be temporary. Cold weather later this year could put pressure on prices. So could a decision by Russia that it wants to "punish" the US and EU for a time. That political battle is only at its beginning. The downward pressure on oil got a second hand. Brazil has confirmed another huge oil deposit to add to one it discovered off-shore earlier this year. The first field uncovered by Petrobras has the promise of being one of the largest in the world. That breadth of that deposit has now expanded. OPEC needs that Saudis to have any credibility in terms of pricing, supply, and the ongoing success of its bully pulpit. By failing to keep its most critical member it forfeits its leverage. OPEC has made no announcement to the effect that it is dissolving, but the process is already over. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Sep 2008 | 9:55 am Reality TV's jackpot queenHave the rumors of network television's demise been greatly exaggerated? It was hard not to wonder whether years of obituaries had been premature as NBC racked up prodigious ratings last month for its coverage of the Beijing Olympics. According to Nielsen, 28 million Americans tuned in nightly to watch Michael Phelps crawl, breaststroke, butterfly, and backstroke his way to eight gold medals. They kept watching even as stars from other nations, such as Jamaica's felicitously named Usain Bolt, sprinted to glory.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 9:51 am Apple execs settle shareholder suits for $14 million (Reuters)
Source: Yahoo! News: Business | 11 Sep 2008 | 9:48 am Apple execs settle shareholder suits for $14 millionLOS ANGELES (Reuters) - A federal judge in San Jose has given preliminary approval to a $14 million settlement of shareholder claims over backdating of stock options against current and former Apple Inc executives, court documents showed.Source: Reuters: Business News | 11 Sep 2008 | 9:48 am Warren Buffett's happy housing storyNot every subprime lender is drowning in red ink. Berkshire Hathaway subsidiary Clayton Homes, the nation's largest maker and financer of prefab and mobile homes, has been a bright light in a mortgage market that has generated $500 billion in write-downs since the start of 2007.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 9:46 am Unemployment warning sends pound tumblingDavid Blanchflower, the arch-dove on the Bank of England's Monetary Policy Committee (MPC), today forecast that the UK economy is heading for an "unpleasant shock" with unemployment set to spike in October.Source: Latest Business News from Times Online | 11 Sep 2008 | 9:46 am U.S. rebound questioned, French growth to slow: LagardePARIS (Reuters) - Questions remain over the sustainability of the U.S. economic recovery, French Economy Minister Christine Lagarde said on Thursday as she played down the risk of recessionSource: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 9:43 am Asia stocks fall sharply amid financial fearsAsian markets fell sharply Thursday as troubles at U.S. investment bank Lehman Brothers fanned fears of more credit-market losses and drove down financial company shares across the region.Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 9:38 am Slim buys New York Times stakeMexican billionaire and telecoms tycoon Carlos Slim buys a 6.4% stake in publisher of the New York Times.Source: BBC News | Business | World Edition | 11 Sep 2008 | 9:37 am Retirement: Win the game of riskThe classic vision of retirement planning goes something like this: You start broke. You invest as best you can, and if nothing goes too terribly wrong, you finish with enough money to support yourself.Source: Business and financial news - CNNMoney.com | 11 Sep 2008 | 9:37 am Stock futures signal lower Wall Street startStock index futures pointed to a lower opening on Wall Street on Thursday on lingering concerns over the health of the financial sector, while weaker oil prices could weigh on energy...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 9:34 am Stock futures signal lower Wall Street startStock index futures pointed to a lower opening on Wall Street on Thursday on lingering concerns over the health of the financial sector, while weaker oil prices could weigh on energy shares.Source: Reuters: Business News | 11 Sep 2008 | 9:34 am Investors Walk Out On Emerging Market Markets
The economy in China is slowing. Russia is not longer a "friend" to the US. Several large companies in India have warned that their growth rates have fallen off sharply. According to the FT, "Outflows from emerging markets bond and equity funds reached $29.5bn over the past three months, the highest level since at least 1995." The troubles in the New World may help the ancient markets of the US and Europe. No matter how dire that drop in indexes in Germany, the UK, and America appear to investors in those countries, they are safe harbors compared to markets in Ukraine. The slowdown in the global economy may have hit the US early. It has begun to spread abroad as real estate prices and export rates in nations include China fall into decline. While America has been early into a recession it may be early in an exit. If the housing market here is at the foundation of trouble in global markets, the benefit of any improvement in the situation should have its first impression here. For the last several years, what was good for China, Russia, and other markets still in early stages was bad for the US. There are only so many opportunities to go around. The screw has turned and the US markets are the most likely beneficiary. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Sep 2008 | 9:28 am Oil prices drop amid falling demand for energyOil prices fell on Thursday as demand for energy decreased around the world owing to a global economic slowdown. Prices had risen earlier in the day as Hurricane Ike headed...Source: Infocious RSS raw feed - channel BNewsBusiness | 11 Sep 2008 | 9:24 am Britons expect prices to keep risingBritish expectations of rising inflation are becoming more entrenched, according to the Bank of England's latest quarterly survey of attitudes.Source: FT.com - US homepage | 11 Sep 2008 | 9:15 am Deutsche Bank in talks to buy Postbank stakeDeutsche Bank says late Wednesday that it’s in advanced talks to buy a stake in Deutsche Postbank from Deutsche Post in a deal that would significantly boost its retail banking operations.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 9:13 am World's Second Richest Man Buys Into New York Times (NYT)
Carlos Slim, the Mexican telecom mogul whose net worth is estimated at $60 billion by Forbes, filed a 13-G with the SEC, disclosing a 6.4% stake in the company. Given that there are several activist investors circling the company, the fact that it's a 13-G is interesting: by disclosing the stake that way, instead of with a 13-D, Mr. Slim is indicating that the investment is passive and that he does not intend to take an active role in shaping the company's strategy. Here's what investors should take from this: Mr. Slim is a smart guy, so it might be worth picking up the stock based on the notion that if it's good enough for him, it's good enough for you. Slim is likely attracted by the same thing that's attracted a lot of investors: valuable brands at a depressed share price. But don't expect Slim to be the guy who shakes things up for the benefit of shareholders. The situation at The New York Times Co. is very similar to the one at the Dow Jones & Co. before it was sold to News Corp. (NYSE: NWS). You have a company with a board of directors with a history of value destruction entrenched by a dual-class voting structure, and a hodgepodge of outside shareholders buying up stakes to little effect. In the long run, the only thing that is likely to generate real returns for shareholders is an unsolicited takeover bid from a strategic buyer. In the current environment, that seems unlikely to happen anytime soon. Zac Bissonnette Source: 24/7 Wall St. | 11 Sep 2008 | 9:11 am Another big oil discovery off Brazil boosts Petrobras, partnersLONDON (MarketWatch) -- Companies led by Petrobras encountered fresh success in a field offshore of Brazil, saying a recent oil find in the Santos Basin contains up to 4 billion barrels of oil.Source: MarketWatch.com - Top Stories | 11 Sep 2008 | 9:11 am Lehman survival strategy fails to lift marketsAsian stock markets were sharply lower on Thursday as Lehman Brothers' strategy to insulate itself from further damage from the credit crisis failed to boost sentiment in the financial services sector...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 9:04 am Senate report says dividend taxes being dodgedWASHINGTON (Reuters) - U.S. financial institutions are using stock swaps and intricate loan transactions to help foreign investors avoid paying billions of dollars in taxes on dividends paid by U.S. companies, according to a Senate report to be released on Thursday.Source: Reuters: Business News | 11 Sep 2008 | 8:57 am Co-op buoyed by drop in bad debtsThe Co-operative's banking arm hails a drop in bad debts for a rise in half year profits.Source: BBC News | Business | World Edition | 11 Sep 2008 | 8:49 am Pension agency to go to court vs Delphi, GM: report(Reuters) - The U.S. government's pension insurance agency has told bankrupt auto parts maker Delphi Corp it would go to court on Friday to secure a claim on an additional $900 million in Delphi assets, The Wall Street Journal said.Source: Reuters: Business News | 11 Sep 2008 | 8:44 am Senate report says dividend taxes being dodged (Reuters)
Source: Yahoo! News: Business | 11 Sep 2008 | 8:42 am Miner Cleveland-Cliffs offers to buy out PortmanSYDNEY (Reuters) - U.S. miner Cleveland-Cliffs Inc made a friendly A$560 million ($450.5 million) offer to buy out Australian iron miner Portman Ltd on Thursday, and is seeking a 30 percent stake in a second Australian miner.Source: Reuters: Business News | 11 Sep 2008 | 8:37 am N Zealand lowers interest rates to 7.5%New Zealand's central bank cut its benchmark interest rate by a higher-than-expected 0.5 per cent on Thursday and admitted the economy was in recession after two consecutive quarters of contraction.The...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 8:27 am Lehman Brothers: a turbulent historyTurbulent historySource: Latest Business News from Times Online | 11 Sep 2008 | 8:24 am Sharp Increase In Short Bets On Big Financial Firms
Shares short in Wells Fargo (WFC) moved up 6% to 176 million. The short interest in most tech shares fell. Share short in Intel (INTC) fell 17% to 69 million. Short interest in Microsoft (MSFT) fell 11% to 45 million. Shares short in Sun (JAVA) fell 18% to 37 million. Shares short in Marvel dropped 22% to 27 million. Other notable moves included an increase of shares short in Nvidia (NVDA) of 110% to 47 million and an increase of 10% of shares sold short in Sirius XM (SIRI) to 232 million Data from NYSE and Nasdaq Douglas A. McIntyre Source: 24/7 Wall St. | 11 Sep 2008 | 8:20 am FTSE hampered by high street stocksLondon fell on Thursday after more bad news from the UK high street. Home Retail Group, the owner of the Argos catalogue shops and Homebase home improvement chain said it could face a writedown of "several...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 8:04 am Medvedev fails to halt Russia stock slideDmitry Medvedev stepped in to try to bolster confidence in Russia's plunging stock market yesterday, as the central bank injected more than $10bn (7.1bn, 5.7bn) into the banking system to alleviate a chronic...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 8:02 am Russia market slide subsidesRussia's stock market inched higher on Thursday a day after President Dmitry Medvedev tried to bolster confidence in the battered stock market and the central bank injected more than $10bn (7.1bn, 5.7bn)...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 8:02 am Media Digest 9/11/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that billionaire Carlos Slim has bought 6% of The New York Times (NYT). Reuters writes that Northrop Grumman (NOC) may get a $5 billion deal to build an aircraft carrier for the US Navy. Chrysler will introduce seven new models by 2010, according to Reuters. Reuters reports that Apple (AAPL) settled a shareholder suit for options backdating for $14 million. The Wall Street Journal reports the exports have supported a number of US regions due mostly to the fall of the dollar. The Pension Benefit Guaranty Corporation is pressuring Delphi and GM (GM) to fund the troubled auto parts company's pension, the Journal says. The Wall Street Journal reports that Fannie Mae (FNM) sold a record $7 billion of two-year notes as investor demand for the offering exceeded expectations. The Wall Street Journal says that Bank of America (BAC) will buy back $4.5 billion in auction-rate securities. The Wall Street Journal reports that India's Infosys expects weak growth in its current fiscal year. The Wall Street Journal reports that Imclone (IMCL) rejected a bid from Bristol-Myers (BBY). The Wall Street Journal writes that advertising has slowed at Time Warner's (TWX) AOL. The Wall Street Journal reports that the Russian stock market has been plunging. The Wall Street Journal reports that the Pentagon canceled a $40 billion tanker competition, a victory for Boeing (BA). The New York Times says that problems with falling real estate have spread to China. The New York Times reports that Saudi Arabia will ignore an OPEC production cut. The New York Times says that banks are increasingly offering small businesses credit cards rather than lines of credit . The FT writes that money is flowing out of equities and bonds in emerging markets. The FT reports that banks could face billion of dollars in credit derivatives contracts losses from Fannie Mae (FNM) and Freddie Mac (FRE). Bloomberg reports that the Fed may increase loans to bankers and brokerage firms. Bloomberg writes that the administration is trying to figure out how to put Fannie and Freddie's $5.2 trillion in debt into the federal budget. Douglas A. McIntyre Source: 24/7 Wall St. | 11 Sep 2008 | 7:54 am Oil rises on hurricane concernsOil prices rebound as Hurricane Ike strengthens and heads towards oil installations on the Texas coast.Source: BBC News | Business | World Edition | 11 Sep 2008 | 7:47 am Golden hillsUK farmers strike gold with bottled rape seed oilSource: BBC News | Business | World Edition | 11 Sep 2008 | 7:42 am Home Retail to slash Homebase value by 70%Home Retail Group will write down the value of Homebase, its DIY chain, by “several hundreds of million” pounds later this year after suffering from the marked slowdown on the high street.Source: Latest Business News from Times Online | 11 Sep 2008 | 7:35 am Deutsche Bank in talks to buy PostbankDeutsche Post is poised to announce the sale of all or part of Postbank, with Deutsche Bank the leading candidate to buy its banking rival in the second big deal within days in Germany's financial sector...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 7:31 am Asia Markets 9/11/2008 (CHL)(LFC)
The Nikkei was off 2% to 12,103. Mitsubishi UFJ Financial fell sharply as did Canon. The Hang Seng fell 3.5% to 19,304. China Mobile (CHL) was off nearly 6%. China Life (LFC) was off more than 4%. The Shanghai Composite fell 3.3% to 2,079. Data from Reuters Douglas A. McIntyre Source: 24/7 Wall St. | 11 Sep 2008 | 7:28 am Credit crunch knocks Argos salesArgos and Homebase owner Home Retail Group says sales have suffered amid the current tough consumer environment.Source: BBC News | Business | World Edition | 11 Sep 2008 | 7:03 am Pentagon halts bitter Air Force tanker competition in setback for Northrop GrummanDefense Secretary Robert Gates cancels a lengthy contest that had been marked by scandal. The decision gives new life to an effort by Boeing, which had been expected to lose to Northrop.Defense Secretary Robert M. Gates on Wednesday canceled a bitter competition to build a new fleet of Air Force refueling tankers, saying the contest had become so acrimonious that picking a winner was impossible before President Bush leaves office. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am Released car-accident material lacks crucial informationNHTSA publishes data on serious crashes, but manufacturers' claims keep information on the tires, child seats and motorcycles confidential.Long-awaited information on serious vehicle accidents was released to the public Wednesday by the federal government, but crucial data on tires and child-safety seats was withheld. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am Coffee, tea or pornography?American Airlines flight attendants are worried about something special in the air: passengers surfing porn websites.Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am CTIA convention a stage for wireless innovatorsIf it's a new or better use for a cellphone, it's here. But even if you have the next can't-miss breakthrough, getting noticed isn't easy.Bobbing his head to a hip-hop song by Method Man, Mike Michels tried to reel in people walking past the CyFi booth on a crowded convention center floor Wednesday. ¶ "It's the world's first wireless speaker for cellphones," he shouted to a man in a suit and glasses who slowed as he passed. ¶ "OK," the man said, and kept walking. ¶ "It weighs less than 4 ounces," Michels said to another. The man shook his head, laughed and wandered to the next booth, which was giving away juice in exchange for a business card. ¶ Mobile products and services make up one of the hottest sectors in the tech world. But, as Michels knows, it's tough getting noticed. ¶ CyFi, a Los Angeles start-up, is one of the many companies showing off new gear at this year's CTIA convention, one of the wireless industry's biggest trade shows, as they try to turn their products into must-haves for cellphone owners. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am Scandal at federal oil royalty collection agencyEmployees of an Interior Department group had sex with industry contacts, accepted gifts and used drugs, investigators say.Federal investigators said Wednesday that an Interior Department group in charge of collecting oil and natural gas royalties was compromised for years by employees who improperly accepted gifts from oil company employees, handed out sweetheart deals, had sex with subordinates and industry contacts and used illegal drugs. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am Former UnitedHealth CEO William McGuire to pay $30 million to end CalPERS suitThe agreement to pay shareholders satisfies a class-action complaint that grew out of a 2006 options-backdating scandal. It comes on top of a separate $895-million settlement by the insurer.The former chief executive of health insurance giant UnitedHealth Group Inc. agreed to personally pay $30 million to shareholders and give up stock-option rights to settle a class-action lawsuit led by the California Public Employees' Retirement System. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am O.C. salesman James Halstead indicted on fraud, money laundering chargesHalstead had recently been ordered to pay more than $66 million to investors in an alleged securities scam. He has denied wrongdoing.A Santa Ana insurance salesman accused of bilking investors out of tens of millions of dollars and spending it on exotic sports cars and Las Vegas real estate was indicted Wednesday on federal wire fraud, mail fraud and money-laundering charges. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am O.C. salesman James Halstead indicted on fraud, money laundering chargesHalstead had recently been ordered to pay more than $66 million to investors in an alleged securities scam. He has denied wrongdoing. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 7:00 am Politicians decry payouts for deposed chiefs of Fannie Mae and Freddie MacBoth presidential candidates and members of Congress say the executives aren't entitled to multimillion-dollar severance packages after leading the mortgage giants into a financial swamp. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 11 Sep 2008 | 7:00 am Politicians decry payouts for deposed chiefs of Fannie Mae and Freddie MacBoth presidential candidates and members of Congress say the executives aren't entitled to multimillion-dollar severance packages after leading the mortgage giants into a financial swamp.There's not much that Democrats and Republicans agree on these days, but there's one emerging issue on which they're in complete accord: The deposed chief executives who led mortgage giants Fannie Mae and Freddie Mac into a financial swamp don't deserve to collect multimillion-dollar bonuses on their way out the door. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am Mortgage rates are plunging -- for those who qualifyWould-be borrowers who have been flooding lenders with phone calls find that standards have changed.The government takeover of Fannie Mae and Freddie Mac has sent mortgage rates tumbling, prompting homeowners and would-be buyers to flood loan offices with phone calls. Source: L.A. Times - Business | 11 Sep 2008 | 7:00 am Economic gloom depresses the euroThe euro hits a fresh one-year low against the US dollar on renewed worries about the health of the European economy.Source: BBC News | Business | World Edition | 11 Sep 2008 | 6:48 am Morrisons defies gloom with 19% profits jumpWm Morrison, Britain’s fourth-biggest supermarket chain, today emerged as one of the clear winners of the credit crunch after reporting a near 19 per cent rise in profits during the first six months of the year.Source: Latest Business News from Times Online | 11 Sep 2008 | 6:33 am Coca Cola in China antitrust caseChina's competition watchdog says it will enforce anti-monopoly rules in reviewing Coca Cola's bid to buy Chinese juice company Huiyan.Source: BBC News | Business | World Edition | 11 Sep 2008 | 6:01 am Currency: Dollar sinks after Bollard's surpriseThe New Zealand dollar fell sharply when the Reserve Bank cut its official cash rate by 50 basis points to 7.5 per cent. A move of just 25 basis points had been expected. Economists said they were gobsmacked by the cut and their...Source: New Zealand Herald - Business | 11 Sep 2008 | 5:30 am Santa Monica Place will gain ocean view in major makeoverThe Frank Gehry-designed shopping center will feature a broad plaza surrounded by curving walls that open both to the street and toward the beach.The new incarnation of Santa Monica Place, the Frank Gehry-designed shopping center that is getting a major makeover in downtown Santa Monica, will feature a broad plaza surrounded by curving walls that open both to the street and toward the beach. Source: L.A. Times - Business | 11 Sep 2008 | 5:21 am U.S. ex-car retail sales growth slows: SpendingPulseNEW YORK (Reuters) - U.S. retail sales excluding cars rose in August but at a slower pace, as high gasoline and food prices cut into spending on other goods and services, a private report released on Thursday showed.Source: Reuters: Business News | 11 Sep 2008 | 4:50 am Pentagon defers decision on air tankersEADS suffered a fresh setback in its attempt to break into the lucrative US defence market after the Pentagon scrapped a $35bn refuelling tanker contract that the Franco-German group had been awarded this yearSource: FT.com - US homepage | 11 Sep 2008 | 4:28 am U.S. ex-car retail sales growth slows: SpendingPulse (Reuters)
Source: Yahoo! News: Business | 11 Sep 2008 | 4:25 am Banks cut mortgage rates in wake of shock Bollard moveThree banks have now moved to cut mortgage rates, after Reserve Bank Governor Alan Bollard this morning surprised the market with an aggressive 0.5 per cent cut in the official cash rate. State-owned Kiwibank moved first, cutting...Source: New Zealand Herald - Business | 11 Sep 2008 | 4:00 am Housing market 'set to fall further' - BollardThe housing market will continue to fall until the end of the year, Reserve Bank Governor Alan Bollard told MPs today. Speaking to Parliament's finance select committee after cutting interest rates by 50 points, Dr Bollard said...Source: New Zealand Herald - Business | 11 Sep 2008 | 3:00 am Wall Street tax avoidance 'gimmicks' rebukedA report by a Senate subcommittee says complex derivatives strategies used by leading banks are helping hedge funds and offshore clients avoid billions of dollars in taxesSource: FT.com - US homepage | 11 Sep 2008 | 2:12 am International visitors down 8pc in JulyThe number of international guests staying at accommodation in New Zealand dropped by 8 per cent in July compared with the same month last year, a New Zealand accommodation survey has found. But the loss of income was partly offset...Source: New Zealand Herald - Business | 11 Sep 2008 | 2:01 am Wet weather sends food prices soaring - biggest hike in 19 yearsFood prices rose 2.7 per cent in August, the largest monthly increase in 19 years, Statistics New Zealand (SNZ) said today. The last time food prices rose at a faster rate was the 3.8 per cent rise in July 1989, when the rate of...Source: New Zealand Herald - Business | 11 Sep 2008 | 2:00 am Manufacturing contracts for 4th straight month, survey saysManufacturing activity contracted for a fourth consecutive month, even as some signs of recovery emerge in the economy, a new survey shows. The Bank of New Zealand - Business NZ performance of manufacturing index (PMI) fell three...Source: New Zealand Herald - Business | 11 Sep 2008 | 1:00 am Reaction - OCR move welcomed, big cut predicted next timeThe scale of today's Official Cash Rate cut caught the market by surprise. Most were expecting a more modest 25 point (0.25pc) cut. Now, some are thinking the Reserve Bank will cut rates by another 50 points when it next looks at...Source: New Zealand Herald - Business | 11 Sep 2008 | 12:46 am Business Briefs - WednesdayStrong dollar seen hitting Google. The Internet search king had its price target, profit forecasts and revenue estimates cut by Lehman Bros.,...Source: Investor's Business Daily: BUSINESS | 11 Sep 2008 | 12:24 am Credit Card Transaction Processor Grows As The World Goes PlasticOne formula for success in the age of global markets has become clear. Establish a domestic revenue base where demand is growing for an advanced...Source: Investor's Business Daily: BUSINESS | 11 Sep 2008 | 12:24 am In Brief - WednesdayFreeport-McMoRan Copper & Gold (FCX) cut its '08 copper sales outlook by 1.6% after a wall collapsed at its open pit mine in Indonesia. Shares...Source: Investor's Business Daily: BUSINESS | 11 Sep 2008 | 12:24 am Trends & Innovations - WednesdayMed students avoid primary care. Researchers have developed the first adhesive that cleans itself after each use. The breakthrough may help bring...Source: Investor's Business Daily: BUSINESS | 11 Sep 2008 | 12:24 am After The Close - WednesdayJOY GLOBAL (JOYG), a mining equipment maker, boosted its stock buyback program to $2 bil from $1 bil, and extended the program to the end of '11....Source: Investor's Business Daily: BUSINESS | 11 Sep 2008 | 12:24 am US oil agency accused of ethics violationsThe US interior department agency that collects oil and gas royalties was accused of ethics violations, ranging from accepting gifts from energy companies and manipulating contracts to cocaine use and sexual misconductSource: FT.com - US homepage | 11 Sep 2008 | 12:03 am GlaxoSmithKline backs Cellzome researchGlaxoSmithKline is putting £850m into new research by Anglo-German biotech company Cellzome that could develop treatments for arthritis, Parkinson's disease and some cancers.Source: Telegraph Business | 11 Sep 2008 | 12:01 am Keeping the wolves from the door at NextNext has always been a cautious retailer. So when chief executive Simon Wolfson warned two years ago that the economy was about to slow, a number of wags accused him of crying wolf.Source: Telegraph Business | 11 Sep 2008 | 12:01 am RAB Capital seeks to lock in investorsRAB Capital has threatened to liquidate its troubled flagship Special Situation Fund - unless investors agree not to withdraw funds for three years.Source: Telegraph Business | 11 Sep 2008 | 12:01 am Beginning of the end as Lehman Brothers overhaul set outJob losses feared after spin-offs and sales announced in strategy to downsize the tarnished City playerSource: Telegraph Business | 11 Sep 2008 | 12:01 am Movers and shakersMovers and shakersSource: Telegraph Business | 11 Sep 2008 | 12:01 am Credit crisis results in losses for city executivesThe credit crisis has halted the boom on executive pay, as a new survey shows a levelling off in the salary packages of all but an elite few bosses.Source: Telegraph Business | 11 Sep 2008 | 12:01 am UK energy companies braced for 'windfall tax'Britain's power companies have claimed that a major energy announcement today by Gordon Brown will amount to a "windfall tax" in all but name.Source: Telegraph Business | 11 Sep 2008 | 12:01 am City news (Mon-Fri)City news (Mon-Fri)Source: Telegraph Business | 11 Sep 2008 | 12:01 am Opec trims supplies but cannot prevent oil prices from slidingAn attempt by members of the Opec oil cartel to halt the recent slide in crude prices by deciding to cut back supplies seemed to fail yesterday.Source: Telegraph Business | 11 Sep 2008 | 12:01 am Quality keeps profits sweet at ThorntonsThorntons, the chocolate-maker and retailer, said new products and a trend for customers to buy more up-market chocolates helped increase its full-year profits by almost 20pc.Source: Telegraph Business | 11 Sep 2008 | 12:01 am Strategic Finance investors have to wait for their interest, dividendsStrategic Finance investors are going to have to wait for interest and dividend payments as the company works on a capital restructure proposal. Last month Strategic suspended redemptions, affecting 15,000 investors with $325 million...Source: New Zealand Herald - Business | 10 Sep 2008 | 11:41 pm Apple Settles Backdating LawsuitIf anyone is in doubt that backdating options is a bad idea, it should be dispelled by the announcement Wednesday that Steve Jobs and other senior Apple executives and directors agreed to pay investors $14 million to end a class action lawsuit over the practice.Investors sued after it was disclosed two years ago of accounting problems with stock option grants made over a five-year period beginning in 1997. Apple didn't account for the grants as compensation, which would have made them legal. In addition to Jobs, chief operating officer Tim Cook and finance chief Peter Oppenheimer had been named in the case. Two former Apple officials, former finance chief Fred Anderson and former general counsel Nancy Heinen, were named as defendants. The settlement, which was approved earlier this week by a federal district judge in California, includes $7.3 million in attorney fees and $300,000 to those who brought the suit against iPod’s maker. The deal is slated to be finalized on Oct. 31. Apple had no immediate comment, but the costs apparently won’t fall on the shoulders of Jobs and other highly paid executives but on the insurance companies representing them. That’s because the shareholders filed a “derivative” lawsuit where they sued executives and board members on grounds that their actions harmed the company as a whole. The deal appears to mark the end of inquiries into any questionable options granting at the digital giant. Last month, Heinen settled charges brought by the Securities and Exchange Commission that she altered company records to conceal the backdating of nearly 12 million options in two instances for Jobs and some other executives—which would have given them a tidy $40 million profit. Heinen, who did not admit wrongdoing, agreed to pay $2.2 million in a civil settlement and to professional restrictions. Anderson settled his case in April, agreeing to give up $3.5 million in options gains and pay a $150,000 fine. At the same time, though, Anderson blamed Jobs for the practice. Jobs and the others who settled on Wednesday had been cleared in an internal inquiry. They avoided S.E.C. charges because they didn't exercise options they had received.Related Links Former Apple C.F.O. to Settle Backdating Charges Former Apple C.F.O. Blames Steve Jobs Backdaters Bite Back Source: Portfolio.com: Top 5 | 10 Sep 2008 | 11:30 pm Disney may tackle BSkyB with bid for Premier League football rightsThe Walt Disney Company may consider mounting a challenge to BSkyB by bidding for Premier League football broadcasting rights next year.Source: Latest Business News from Times Online | 10 Sep 2008 | 11:09 pm Troubled RAB Capital seeks to lock in investors for three yearsRAB Capital, the embattled hedge fund, threatened to liquidate its flagship $900 million ($£512 million) Special Situations fund yesterday unless investors agreed to leave their capital locked up for the next three years. The threat came after turbulent markets left the Special Situations fund, set up and run by Philip Richards, RAB’s co-founder and former chief executive, down by 48 per cent so far this year. Last month alone, the portfolio lost 22 per cent of its value. Investors are usually allowed to redeem their funds after a six-month period. Had it left the fund untouched, RAB would have faced a torrent of redemption notices from disgruntled investors. This could have forced a fire sale of assets to pay off departing investors. In exchange for dramatically extending their lock-in period from the present six months, RAB is offering to cut management and performance fees from 2 per cent and 20 per cent, respectively, to 1 per cent and 15 per cent. RAB has already issued a profits warning and suffered a sliding share price this year. The Special Situations fund gained notoriety for its ill-fated investment in Northern Rock, the stricken mortgage lender that was nationalised in February. It is thought RAB wrote down its Rock losses long ago. The fund has also all but written down an investment in A1 Grand Prix, a rival to Formula One racing that has tumbled in value. This week Mr Richards – the R in RAB – stepped down as the hedge fund’s boss to concentrate on the fund and his other natural resources fund full-time. Stephen Couttie, formerly chief operating officer and finance director, has taken the helm at the hedge fund. The move to restructure also shows how the investment landscape has slumped markedly in recent months. At the end of July, two months after its profits warning, RAB told investors that Special Situations was down by 23 per cent for the six months to June 30. RAB said yesterday that restructuring the fund would ensure that all investors were treated fairly. Traditionally, the first to redeem their funds would be the most likely to secure the best deal. A spokesman said that investors had still seen a return of about 17 times their money. Investors will vote on the proposals at the end of the month, RAB said. RAB’s shares, down more than 70 per cent over the past year, were virtually flat at 29p. Last week Ospraie Management said that it would be shutting its flagship commodities fund run by Dwight Anderson.Source: Latest Business News from Times Online | 10 Sep 2008 | 11:00 pm Brian Fallow: Bollard applies cattle prod to the banksIt is fitting that the date is September 11 because the Reserve Bank moved more decisively today to cut rates than it has since the wake of the attack on the World Trade Centre seven years ago, lowering the official cash rate by 50...Source: New Zealand Herald - Business | 10 Sep 2008 | 11:00 pm E.ON to build £4bn British nuclear power stationE.ON, the German energy group, is drawing up plans to build a £4 billion nuclear power station beside the River Severn in Gloucestershire. The company has applied to National Grid for a connection that would allow it to build a 1,600 mega-watt nuclear station at Oldbury-on-Severn by April 2020. National Grid has granted permission for the link to a site that is next to an existing station owned by the Government through the Nuclear Decommissioning Authority (NDA). It hosts two 225 MW Magnox reactors that have been operating since 1967 and are scheduled to be retired from service at the end of the year. E.ON’s interest in the site has emerged amid expectations that EDF, its French rival, is on the brink of acquiring British Energy (BE), the UK’s largest nuclear generator, for about £12 billion. The deal would give it control of most of the preferred sites for new British nuclear stations. It also comes as the NDA said yesterday that it was putting three sites up for sale, including one at Oldbury, to potential developers of new nuclear plants. E.ON is expected to submit a bid to buy the site at Oldbury, although a spokeswoman insisted that the company’s interest was only preliminary. The NDA sites represent the best alternative to those owned by BE. New nuclear stations are likely to be built on or next to existing sites. E.ON has said that it wants to build two new nuclear stations in Britain to a French reactor design made by Areva. Wulf Bernotat, E.ON’s chief executive, told The Times this year that each one was likely to cost between €5 billion and €6 billion (£4 billion and £4.8 billion) to build. The other NDA sites put up for sale yesterday were Wylfa, on Anglesey, and Bradwell, in Essex. The NDA is also studying which parts of the Sellafield site in West Cumbria it could sell for the development of new nuclear stations. The expected sale of BE to EDF will give the French company ownership of the lion’s share of sites for new nuclear facilities in Britain. Takeover talks are continuing and one of two rebel BE shareholders, Invesco, the fund manager, is understood to have been persuaded to back the deal. Sources believe that a successful takeover could be announced as early as next week. Separately, E.ON courted controversy yesterday, when one of its executives joked that if soaring energy prices continued it would “make more money for us”. The quip was made by Mark Owen-Lloyd, head of power trading at E.ON, at a seminar hosted by Ofgem on gas prices, and was later condemned by Energywatch, the watchdog. A spokesman for E.ON said that the remarks were “wholly inappropriate” and offered the company’s apologies. Generation gap — Britain's ten nuclear stations generate 15 per cent of the UK's electricity — The Government wants to raise this to 40 per cent by building 20 new reactors — All but one of the existing plants are due to be retired by 2023 — E.ON's proposed station at Oldbury would enter service in 2020 and would generate 1,600 megawatts of power — EDF wants to build four stations at sites owned by British EnergySource: Latest Business News from Times Online | 10 Sep 2008 | 11:00 pm BlackBerry pitches the Pearl Flip at the Christmas marketResearch in Motion (RIM), maker of the BlackBerry, has launched its first flip version as it seeks to win over non-business users.Source: Latest Business News from Times Online | 10 Sep 2008 | 11:00 pm Dick Fuld, Wall Street's tough guy is testedDick Fuld, Lehman Brothers' chief executive, is no stranger to crisis. Ten years ago, many Wall Street banking executives found themselves receiving a phone call from Mr Fuld, as he accused their staff of spreading rumours to trash the reputation of his bank and telling them, in the bluntest of terms, that Lehman would survive.Source: Latest Business News from Times Online | 10 Sep 2008 | 11:00 pm NZ Shares: Market starts strong after rate cutThe New Zealand sharemarket rose strongly in early trading, following the Reserve Bank's move to cut official interest rates by a larger than expected half a percentage point. It also came after mild gains by US equities as Opec's...Source: New Zealand Herald - Business | 10 Sep 2008 | 10:42 pm Lehman sets asset sales plan, posts $4 billion loss (Reuters)
Source: Yahoo! News: Business | 10 Sep 2008 | 10:41 pm Insurers and banks face huge CDS lossesThe default of up to $500bn of Fannie Mae and Freddie Mac credit derivatives contracts triggered by the US government's seizure of the mortgage groups could result in billions of dollars of losses for insurance companies and banks who offered credit insurance in recent monthsSource: FT.com - US homepage | 10 Sep 2008 | 10:30 pm UnitedHealth Settlement SoarsWilliam McGuire, the former head of UnitedHealth Group Corp., has agreed to pay a hefty $30 million to settle stock options dating accusations brought in a class action lawsuit led by the California Public Employee Retirement System.The agreement announced Wednesday means McGuire's $30 million will be added to the $895 million settlement reached in July in the class action suit with UnitedHealth Group and 16 other defendants—all current or former officers or directors. McGuire, a medical doctor who has denied the backdating allegations, will also return to the company precisely 3.675 million shares—canceling his right to purchase them—according to the agreement. A trial was set to begin later this month in federal court in Minnesota, where UnitedHealth is based. "This precedent-setting recovery demonstrates that the company's true owners – shareowners—will hold C.E.O.'s accountable for disregarding principled corporate governance," said Peter Mixon, general counsel for Calpers, which represents 1.5 million public employees and their families. McGuire said in a statement, that he was "pleased to be able to help bring the stock option dating issues closer to complete resolution." He added that he had done his part to resolve the backdating issues since leaving the company, which he headed for 17 years. He was forced to resign from his post after an independent committee found that he played a role in setting pricing dates for his stock options. Last December, he settled with the committee, led by two former Minnesota Supreme Court justices, surrendering options valued at about $320 million, pension payments worth $91 million, and about $8 million in his executive savings account. The company restated its earnings going back to 1994, and reduced them by $1.53 billion to account for the unrecognized executive compensation. The former C.E.O. also settled last December with the Securities and Exchange Commission, agreeing to repay $11 million in gains as well as a $7 million penalty to resolve backdating allegations. Calpers also announced that UnitedHealth's former general counsel, David J. Lubben, who resigned along with McGuire in 2006, had agreed to pay $500,000 to settle the class action suit. Lubben also settled with the UnitedHealth investigative committee last December, surrendering more than $23 million in compensation and options. While UnitedHealth had no immediate comment, Calpers noted that the overall class action settlement was "one of the Top 10 securities fraud class action recoveries in U.S. history."Related Links Giving It All Back New York Takes Aim at Health Insurers Let the Hedge Fund Lawsuits Begin Source: Portfolio.com: Top 5 | 10 Sep 2008 | 10:00 pm 8 Stock for Weathering Stormy Markets (Stock Screen)These eight stocks tend to weather stormy markets better than most.Source: SmartMoney.com | 10 Sep 2008 | 9:47 pm Azinger Says Europe's Ryder Cup Team Is `Intimidating'Source: Bloomberg - All Podcasts | 10 Sep 2008 | 9:45 pm Goldman's Wong Calls Collecting Baseball Memorabilia an `Honor'Source: Bloomberg - All Podcasts | 10 Sep 2008 | 9:44 pm Roller-Coaster Ride Ends With Energy ETFs Higher (Daily ETF Wrap-Up)A 100-plus-point rally fizzles as investors scoop up energy ETFs.Source: SmartMoney.com | 10 Sep 2008 | 9:21 pm Big fund firms among top holders in sinking stocks (Reuters)Reuters - Some of America's biggest and best-known mutual fund companies likely suffered heavy losses multiple times this week because they had large holdings in the market's worst performing stocks.Source: Yahoo! News: Business | 10 Sep 2008 | 9:19 pm Cheap Trading Commissions Can Come With Strings (Ticked Off)Many discount brokers offer sub-$10 trades, but there are often strings attached.Source: SmartMoney.com | 10 Sep 2008 | 9:05 pm VIX Index of U.S. Stock Option Prices Retreats 3.7% to 24.52Source: Bloomberg - All Podcasts | 10 Sep 2008 | 9:02 pm LiveStrong Portfolio's Peak Performance (Today From Barron's)LiveStrong Portfolio's peak performance is worthy of Lance Armstrong, its spokesperson.Source: SmartMoney.com | 10 Sep 2008 | 9:00 pm Sex, Drugs, and Oil LeasesThe Bush administration has long been accused of being in bed with energy companies.In Denver, that now appears to be literally true. Federal investigators say that employees at the Minerals Management Service, the agency charged with collecting some $10 billion a year in royalties on oil and natural gas, received gifts from industry executives and, in some cases, had sexual relationships with them. Employees of the agency, a part of the Interior Department, also used cocaine and marijuana, investigators found. "Our investigation revealed an organizational culture lacking acceptance of government ethical standards, inappropriate personal behaviors, and a program without the necessary internal controls in place to prevent future unethical or unlawful behavior," they said. The investigation focused on the royalty-in-kind program—when producers give oil and natural gas instead of cash; the oil and gas is then offered for sale on the market. A third of the program's staff, or 19 people, were found to have socialized or accepted gifts from Chevron, Shell, Gary-Williams Energy, and Hess. The gifts were food, drinks, lodging, golf, and skiing. Investigators said that most company representatives claimed to be unaware of federal rules prohibiting gifts to employees from companies doing business with the government. A supervisor in the program in Denver received almost $1,000 in gifts from the energy industry. He also engaged in sex and drug use with subordinates, and on one occasion was seen snorting crystal meth off a toaster oven. Employees told investigators that they "partied" frequently with oil and gas company representatives. Two employees who attended an industry-sponsored event got so drunk that they were put up in lodging provided by a energy company. One marketing specialist acknowledged that she did have romantic relationships with two men from the oil industry. When asked if she had any other personal or sexual relationships with others in the industry, she asked investigators if they "had any emails or evidence with which to remind her, adding, 'I did date people.'" The inquiries follow an investigation last year that found the program to collect oil and gas revenues to be flawed and rife with ethical problems, leading the government to be underpaid.Related Links Chevron Responds The Toxic Ten One Reason Why Sanctions Failed in Iraq Source: Portfolio.com: Top 5 | 10 Sep 2008 | 9:00 pm Tumazos Says Gold ETFs Are Favorable Influence on Gold PriceSource: Bloomberg - All Podcasts | 10 Sep 2008 | 8:59 pm Rally in energy and tech stocks lift Wall StreetWall Street stocks were higher as a rally in energy and technology stocks helped lift the major indices into positive territorySource: FT.com - US homepage | 10 Sep 2008 | 8:52 pm Lehman plan may only delay takeoverTroubled investment bank Lehman Brothers says it lost almost $4 billion last quarter but it has plans to bounce back. What are its chances of recovering without a white knight? Stacey Vanek-Smith reports.Source: Marketplace | 10 Sep 2008 | 8:30 pm Economy slows fashion's creationsNew York City's Fashion Week is designers' big chance to show off their stuff and hope it sells -- no sure thing in a troubled economy. Kai Ryssdal talks with Kate Betts of Time Style and Design to get her take on the business of fashion this year.Source: Marketplace | 10 Sep 2008 | 8:30 pm Millionaire invests in changing attitudesWe've all heard money can't buy you love or happiness. But if you have enough of it, you might have a chance at changing people's hearts and minds. That's what software millionaire Tim Gill is trying to do. Jeremy Hobson reports.Source: Marketplace | 10 Sep 2008 | 8:30 pm Best hurricane insurance? High groundHurricane Gustav, Hurricane Hanna, Hurricane Ike ... Commentator Robert Reich says now would be a good time to look at how we insure homeowners in disaster-prone places.Source: Marketplace | 10 Sep 2008 | 8:30 pm Boeing gets another chance at tankerThe Pentagon is again delaying its request for proposals to build a new refueling tanker plane. That's good news for Boeing in its competition with Airbus and Northrup Grumman for the $40 billion contract. Mitchell Hartman reports.Source: Marketplace | 10 Sep 2008 | 8:30 pm Mortgage rates fall but crunch isn't overThe federal government's takeover of Fannie Mae and Freddie Mac has led to a drop in mortgage rates, making it a lot more attractive to buy a house or refinance the one you have. Dan Grech reports.Source: Marketplace | 10 Sep 2008 | 8:30 pm Buffett puts up banking caution signA subsidiary of Warren Buffett's Berkshire Hathaway group is going to stop insuring bank deposits over $100,000. Does this mean Buffett is worried about future bank failures? Nancy Marshall Genzer reports.Source: Marketplace | 10 Sep 2008 | 8:30 pm Paying a price to stand up to the MobIn southern Italy most small businesses pay protection money to the Mob. But a movement to fight back is gaining ground. For the first time, a restaurant owner has reported the extortion to the police and named names. Megan Williams has the story.Source: Marketplace | 10 Sep 2008 | 8:30 pm Energy Lifts Major IndexesStocks got a bounce, but it had little to do with Lehman or the financial sector. Thank OPEC's supply cut.Source: SmartMoney.com | 10 Sep 2008 | 8:22 pm Brookhiser Says Washington Saw America as Rising EmpireSource: Bloomberg - All Podcasts | 10 Sep 2008 | 8:18 pm The 52-Week Low Club 9/10/2008 (WM)(LEH)(O)(SIRI)
Lehman (LEH) Restructuring plan has few friends. Down to $6.93 from 52-week high of $67.73. Owens-Illinois (OI) Closed two plants. Drops to $33.91 from 52-week high of $60.60. Sirius XM Radio (SIRI) Market does not like forecast of slowing growth. Drops to $.90 from 52-week high of $3.94 Douglas A. McIntyre Source: 24/7 Wall St. | 10 Sep 2008 | 8:03 pm Fannie/Freddie Deal Will Aid Funds -- Eventually (Fund Insight)The Fannie/Freddie bailout will aid mutual fund investors, albeit no time soon.Source: SmartMoney.com | 10 Sep 2008 | 7:29 pm Term or Whole Life? (Life Insurance)We'll give you a hint: The one you want begins with a "T." Here's why it makes sense for most people.Source: SmartMoney.com | 10 Sep 2008 | 7:10 pm Term or Whole Life? (Life Stages - Families With Young Children)We'll give you a hint: The one you want begins with a "T." Here's why it makes sense for most people.Source: SmartMoney.com | 10 Sep 2008 | 7:10 pm Term or Whole Life? (Life Stages - Engaged or Just Married)We'll give you a hint: The one you want begins with a "T." Here's why it makes sense for most people.Source: SmartMoney.com | 10 Sep 2008 | 7:10 pm Chinese inflation falls sharplyInflation in China dropped sharply in August for the fourth month running, giving more room for policymakers to take measures to boost the economy if growth begins to slow sharplySource: FT.com - US homepage | 10 Sep 2008 | 7:01 pm Surprise Opec cut draws IEA fireOpec's decision to cut oil supplies risks keeping prices of crude at very high levels, cutting short a fall from July's record price, the International Energy Agency has warnedSource: FT.com - US homepage | 10 Sep 2008 | 6:46 pm Richard Bove Sees `Hostile Takeover' of Lehman BrothersSource: Bloomberg - All Podcasts | 10 Sep 2008 | 5:58 pm Marsalis Says Jazz Teaches Hearing `Deeper Than Words'Source: Bloomberg - All Podcasts | 10 Sep 2008 | 5:42 pm Patelis Doubts Global Economy Will Fall Into RecessionSource: Bloomberg - All Podcasts | 10 Sep 2008 | 5:22 pm U.S. Economy Facing Perils, Won't Die: CommentarySource: Bloomberg - All Podcasts | 10 Sep 2008 | 3:11 pm FTSE lower as oil rebounds (AFP)
Source: Yahoo! News: Business | 10 Sep 2008 | 2:47 pm Bank of America Downgraded to `Underperform' at KBWSource: Bloomberg - All Podcasts | 10 Sep 2008 | 2:40 pm Lehman Makes Its StandWith Lehman Brothers' stock price under pressure and growing doubts about its ability to survive, investors were hoping C.E.O. Dick Fuld would 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 need for new capital, those are only baby steps. The questions about the firm's strength remain. It is still shopping 55 percent of its investment-management division, which includes 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 two months: The promise of a deal long foretold provides little cheer. "They are saying 'we are fine now,' and that's buying them time to negotiate for that additional capital," Brad Hintz, an analyst with Bernstein Research told Bloomberg Television. "They will need capital as part of the spin-off.'' The initiatives were outlined as Lehman reported preliminary third-quarter results a week early. As expected, it was ugly: a $3.9 billion loss, after taking write-downs of $7.8 billion on its portfolio. But the cost of insuring Lehman's debt surged early today, with five-year credit default swaps on the firm rising more than 100 basis points, according to Reuters. Lehman was pressured to outline its strategic steps and release earnings a week early, after an extraordinary day when Lehman's stock price plunged 45 percent. "We've been through adversity before," he noted.
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 IKEA year sales rise but economy a drag: report (Reuters)
Source: Yahoo! News: Business | 10 Sep 2008 | 10:28 am
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