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Washington Mutual falls after outlook, cut to junkNEW YORK (Reuters) - Washington Mutual Inc shares fell on Friday after the largest U.S. savings and loan projected another big write-down for soured loans and was downgraded to "junk" status by a leading credit rating agency.Source: Reuters: Business News | 12 Sep 2008 | 1:36 pm Retail sales unexpectedly drop in AugustWASHINGTON -- Frugal shoppers cut back again in August, driving down sales at the nation's retailers for the second month in a row, further proof the economy is losing traction.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 1:36 pm Retail sales unexpectedly drop in AugustWASHINGTON -- Frugal shoppers cut back again in August, driving down sales at the nation's retailers for the second month in a row, further proof the economy is losing traction.Source: L.A. Times - Business | 12 Sep 2008 | 1:36 pm Retail sales fall, wholesale prices softenWASHINGTON (Reuters) - Sales at retailers fell for a second month in a row during August, the Commerce Department reported on Friday in the latest sign that consumer spending is weakening.Source: Reuters: Business News | 12 Sep 2008 | 1:26 pm US August retail sales in surprise slump (AFP)
Source: Yahoo! News: Business | 12 Sep 2008 | 1:25 pm Alitalia unions get extra day to salvage bidROME (Reuters) - Italy's government has given Alitalia's unions one more day to avoid the collapse of a rescue bid for the airline, a government statement said on Friday.Source: Reuters: Business News | 12 Sep 2008 | 1:25 pm Deutsche Bank swoops on PostbankDeutsche Bank has said it has bought a 29.75% stake in the banking arm of Deutsche Post for 2.79bn eurosSource: BBC News | Business | World Edition | 12 Sep 2008 | 1:23 pm Wall Street cued for lower open on Lehman woes (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 1:20 pm Wall Street cued for lower open on Lehman woesNEW YORK (Reuters) - Stocks headed for a lower opening to what could be a volatile session on Friday as Wall Street frets about the fate of Lehman Brothers and fears mount about the investment bank's survival.Source: Reuters: Business News | 12 Sep 2008 | 1:20 pm Are Refiners Coming Back? (VLO, MRO, TSO, RDS, XOM)
The Energy Information Agency's weekly status report showed that commercial stocks of crude oil are down 6.7% from the same time last year, and 1.9% from a week earlier. Total gasoline inventories are also lower than last year by 3.5%. Refinery utilization was down to 78.3%. Refiners are finally getting a chance to work through some of their existing, high-priced crude inventory. Because inventory accounting uses the last-in, first-out method, the refiners are holding down crude purchases as they work through the inventories. According to the EIA report, the average price for a barrel of crude on September 12th was $106.35, and the average retail price for a gallon of gasoline on September 8th was $3.70. The last time crude oil cost roughly the same was on April 4th, when it sold for $106.09. On April 9th, a gallon of gasoline cost $3.38. Crude oil is now priced at the level it was five months ago, but a gallon of gas costs $0.32 more. Refiners and marketers are not lowering their finished product prices to fully reflect the drop in crude for two reasons. First, they don't have to. Consumers have shown a willingness to pay $3.70/gallon, so that's what retailers will charge. Second, they're not sure where the price of crude will actually settle. It's better to reduce crude purchases when prices are steadily falling because it reduces the inventory carrying cost. These increased margins will start to show up in the third quarter earnings reports. Refiners will still have problems with earnings, but the bleeding may have stopped for now. Paul Ausick Source: 24/7 Wall St. | 12 Sep 2008 | 1:18 pm Retail sales fall, wholesale prices soften (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 1:16 pm Retail Data Depress FuturesStocks looked to open lower on a disappointing retail sales report and higher crude oil prices.Source: SmartMoney.com | 12 Sep 2008 | 1:12 pm Lehman races to find rescuer (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 1:06 pm Lehman races to find rescuerNEW YORK/LONDON (Reuters) - Concerns that Lehman Brothers Holdings Inc may not arrange a U.S. government-backed takeover quickly sent its shares down early Friday after reports the investment bank was in talks with Bank of America raised investor hopes of a rescue overnight.Source: Reuters: Business News | 12 Sep 2008 | 1:05 pm Lehman Brothers shares fall 10% in premarketShares of Lehman Brothers fall more than 10% ahead of Friday’s opening bell amid swirling rumors that the embattled Wall Street icon will sell itself over the weekend.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 1:04 pm Thousands stranded by XL collapseBritain's third largest tour operator goes into administration, leaving thousands of people without holidays and flights.Source: BBC News | Business | World Edition | 12 Sep 2008 | 1:03 pm A Diamond in the Rubble (Today From Barron's)This metal recycler is hardly scrap, given rising steel demand in emerging markets.Source: SmartMoney.com | 12 Sep 2008 | 1:00 pm NewsWatch: U.S. futures lower as retail sales fall, Lehman news awaitedU.S. stock futures pointed to a weaker start Friday after an unexpected drop in retail sales, with markets on edge over the fate of Lehman Brothers Holdings, the brokerage believed to be in its last hours of independence.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 1:00 pm Futures Movers: Crude futures up fractionally on hurricane worries, dollar dropCrude-oil futures firm above $101 a barrel, getting a boost from dollar weakness and concerns that Hurricane Ike may disrupt energy production in the Gulf of Mexico.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 1:00 pm Art market readies for Damien Hirst auctionCan art make for a sounder investment than brick and mortar in times of gloom?Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 1:00 pm Former Fed Official: Let Lehman (LEH) Rot
According to Bloomberg, William Poole, former president of the Federal Reserve Bank of St. Louis, said the U.S. central bank and the government shouldn't provide funding for any purchase of Lehman Brothers Holdings Inc. by another bank. It sounds like Poole will not even be sending a "Get Well" card. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 12:59 pm Washington Mutual falls after outlook, cut to junk (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 12:59 pm Wall Street dragged down by poor retail dataUS stocks were set for a lower open after figures showed retail sales were worse than expected last month, while investors awaited an update on the fate of Lehman BrothersSource: FT.com - US homepage | 12 Sep 2008 | 12:57 pm Stocks poised for lower openStocks were poised for a lower opening Friday as investors pondered the fate of Lehman Brothers and oil prices rose as Hurricane Ike churned towards Texas.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 12:55 pm Stocks That Will Profit From the Electric Car (Stock Screen)Find out which stocks will benefit -- from alternative energy names to old stalwarts.Source: SmartMoney.com | 12 Sep 2008 | 12:52 pm IT Outsourcing Income Altered By Dollar (Strength)? (INFY, SAY, WIT)There may be an interesting trend in the I.T. outsourcing game, and one that will seem counter-intuitive if you have witnessed the currency trends and jobs migration trends since 2002. This isn't exactly breaking news now that we have seen such moves occur in the U.S. Dollar after a six-year pounding finally get some reversal traction going. Infosys Technologies Ltd. (NASDAQ: INFY) is one of the largest Indian I.T. outsource operations, and earlier this week it said that it sees some weaker revenue growth trends and is seeing some project delays. The company also said that Dollar gains may hurt its earnings and revenues reported under U.S. accounting standards when you do your Rupee and Pound conversions back into Dollars for its ADR program. Infosys shares were down about $2.00 to $37.18 yesterday on the same concerns but this is one trend which will possibly become front and center for investors who buy ADR's and ADS's in foreign companies when the Dollar is strengthening. Then this morning there were some wire comments out of Satyam Computer Services (NYSE: SAY) and Wipro Ltd. (NYSE: WIT) noting how the currency conversions would also have an impact in the quarter. While it doesn't look like there are any guidance changes, this trend could go far beyond the surface if the Dollar reversal continues. This was part of the reason that the SENSEX in India traded lower by more than 2% today, and Indian tech stocks fared worse. Much of the woes and the pressure on the US Greenback do still exist longer-term, but the Euro essentially rallied 100% from its lows seen at the start of this decade. Next stop, imagine another scenario which would seem odd if you consider the manufacturing outsourcing to China. Imagine a hypothetical day where China actually threw in the towel and said it wants to remove the Renminbi peg to the Dollar entirely. You would almost certainly see a sudden move up in the value of the Renminbi. By what amount is a total unknown. Some economists have in the past stated as much as a 25% move almost instantly. Take that one step further and all of a sudden all of that cheap labor and outsourced factory renting that has been going on would cost that much more too for all the local currency expenses. Maybe Michigan and Ohio manufacturing could actually stage a comeback after a couple decades of steady erosion.
Jon C. Ogg Source: 24/7 Wall St. | 12 Sep 2008 | 12:48 pm Indications: U.S. futures lower as retail sales fall, Lehman news awaitedU.S. stock futures pointed to a weaker start Friday after an unexpected drop in retail sales, with markets on edge over the fate of Lehman Brothers Holdings, the brokerage believed to be in its last hours of independence.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 12:46 pm Retail sales in surprise declineRead full story for latest details.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 12:45 pm Wholesale price drop biggest since '06Read full story for latest details.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 12:40 pm Branson says to spend millions to block BA/AA deal (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 12:40 pm Branson says to spend millions to block BA/AA dealLONDON (Reuters) - Virgin Atlantic President Richard Branson said he was prepared to spend heavily to try to prevent a planned tie-up between British Airways, American Airlines and Spain's Iberia.Source: Reuters: Business News | 12 Sep 2008 | 12:40 pm Oil rises as Ike approachesOil prices climbed higher Friday as Hurricane Ike blew across the Gulf of Mexico toward a strip of refineries on the Texas coast.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 12:39 pm Before the Bell: Lehman, WaMu, retail sales, Chipotle Mexican Grill in viewU.S. stock futures pointed to a weaker start as traders awaited the latest on Lehman Brothers . Unexpectedly weak retail sales also dented sentiment.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 12:38 pm Movers & Shakers: Friday's biggest losing and gaining stocksNEW YORK (MarketWatch) -- Shares of the following companies were among those that are expected to make notable moves on the U.S. stock market Friday.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 12:34 pm Economic Report: Retail sales fall on plunging gas pricesU.S. retail sales unexpected fall in August, pushed lower by plunging gasoline prices, the Commerce Department says.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 12:31 pm Europe Markets: Shares in Europe snap three-session losing streakEuropean shares are on a pace to snap a three-session losing streak, with energy companies rebounding after the sector helped U.S. stocks stage a dramatic Thursday turnaround on Wall Street.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 12:29 pm J&J Vice Chairman Poon to retire in MarchNEW YORK (Reuters) - Johnson & Johnson's board vice chairman, Christine Poon, who also is worldwide chairman of its pharmaceuticals group, will retire from the company and the board on March 1.Source: Reuters: Business News | 12 Sep 2008 | 12:21 pm Families cut back on savings and pensions to cope with rising costsFamilies across the UK plan to cut back on savings deposits and default on their debts in order to make ends meet as times get tougher, a new survey has revealed.Source: Telegraph Business | 12 Sep 2008 | 12:20 pm Families cut back on savings and pensions to cope with rising costsFamilies across the UK plan to cut back on savings deposits and default on their debts in order to make ends meet as times get tougher, a new survey has revealed.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 12:20 pm MarketWatch First Take: AIG better watch out if Premiership jinx continuesIt’s long been observed that the companies that sponsor American sports stadiums tend to soon fall on hard times. It looks like the sponsors of British soccer clubs, who get their names plastered on uniforms, may be suffering that same fate.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 12:14 pm Volvo Cars to cut 900 more jobsBeleaguered Swedish car maker Volvo, a unit of US auto giant Ford, said Friday it planned to cut some 900 jobs in Sweden next year in addition to the 2,000 cuts worldwide announced in June.Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:05 pm Jackson Hewitt Showcases Tax School Through Free Nationwide Online SeminarInteractive Presentation Slated for Tuesday, September 16, 2008 at 4:00 PM EDT PARSIPPANY, N.J., Sept. 12 /PRNewswire-FirstCall/ -- Interested in learning about the...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm Video: New Interactive Toy Inspires Imaginations Through StorytellingKamar takes fun educational web-based approach to playtime with Skoodlez(TM) PALOS VERDES ESTATES, Calif., Sept. 12 /PRNewswire/ -- Today Kamar Innovation Toy Group...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm Syngenta Appoints New Head for Corn and Soybean Seeds, NAFTAWASHINGTON, Sept. 12 /PRNewswire-FirstCall/ -- Syngenta announced today that Jeff Cox, currently Head of NAFTA Corn and Soybeans, has been appointed to lead the...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm Discover Europe in the Springtime With EurailUTRECHT, the Netherlands, September 12 /PRNewswire/ -- - Eurail Group is Issuing Special Edition, Extended Rail Passes for Use in the Spring TheSource: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm First Financial Network, Inc. Announces $360 Million Loan Portfolio OfferingOKLAHOMA CITY, Sept. 12 /PRNewswire/ -- First Financial Network, Inc., the nation's leading loan sale advisor, today announced the offering of more than $360 millionSource: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm University of Michigan Zell Lurie Institute Unveils Lineup for Annual Entrepreneurial SymposiumEntrepalooza 2008 to Connect Aspiring Entrepreneurs with Business Luminaries Roger Newton and Sam Wyly ANN ARBOR, Mich., Sept. 12 /PRNewswire/ -- Continuing to bring...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm RED Development Announces Global Capital Relationship With Institutional Pension FundFund Acquires Position in Several RED Projects; Will Participate in Future Deals KANSAS CITY, Mo., Sept. 12 /PRNewswire/ -- RED Development, LLC today announced the...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm FTSE4Good September Review - 36 Companies Added, 12 Companies Removed From Leading Global SRI Index SeriesNEW YORK, September 12 /PRNewswire/ -- FTSE Group, the award-winning global index provider, today confirms the results of the September review of the FTSE4Good global...Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 12:00 pm Thousands stranded as British holiday firm collapsesBritain's third largest tour operator faced bankruptcy on Friday, stranding more than 65,000 holidaymakers abroad, as soaring fuel costs and the credit crunch left it clinging to survival.Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 11:57 am Deutsche Bank swoops on $13 billion PostbankFRANKFURT/BONN (Reuters) - Deutsche Bank swooped on rival Deutsche Postbank with a deal worth up to $13 billion that could give it control of Germany's biggest retail lender within three years.Source: Reuters: Business News | 12 Sep 2008 | 11:56 am Take your pick of retirement plansAs no-brainers go, this one is right up there: Rather than sink all your cash back into your business, you should funnel some into your own retirement. But a tough economy like this one often tempts small business owners to skimp, figuring they'll make up the savings later.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 11:54 am Talks over Alitalia rescue stallLast-ditch talks between investors and unions to save stricken Italian flag-carrier Alitalia from collapse have broken down.Source: BBC News | Business | World Edition | 12 Sep 2008 | 11:53 am Abbey to cut mortgage rates againThe Abbey bank has become the latest lender on the high-street to cut rates on some of its mortgage products.Source: BBC News | Business | World Edition | 12 Sep 2008 | 11:48 am Adecco mourns death of chairman Klaus JacobsStaff at Adecco, the world's largest employment agency, were in mourning today following the death of Klaus Jacobs, the German-born billionaire and well-known philanthropist, who co-founded the Zurich-based firm.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:42 am Turbulent timesMore holiday firms and airlines may follow XL's demiseSource: BBC News | Business | World Edition | 12 Sep 2008 | 11:31 am Fannie, Freddie Bailout Should Be Good for Stock Market (Ahead of the Curve)We'll look back on the rescue of Fannie and Freddie as the turning point for the credit crisis.Source: SmartMoney.com | 12 Sep 2008 | 11:31 am The End of LehmanAfter 158 years, the days of Lehman Brothers as an independent investment house are rapidly dwindling.Federal officials are pressing Lehman to sell itself before Asian markets open for trading on Sunday night. The Washington Post says regulators "have been in touch with Lehman on an almost hourly basis in recent days."
Bank of America and Barclays of Britain are cited as the most likely buyers of Lehman. BofA could certainly afford Lehman, but it is a surprising suitor given that BofA is already engaged in the process of integrating another troubled financial firm, mortgage lender Countrywide Financial, and Ken Lewis, the bank's C.E.O., last talked about the investment-banking business in the same way that people politely make reference to the fact that sewage has flooded their basement. But Richard Bove, the influential bank analyst, said that an acquisition would finally give BofA a world-class investment-banking business and a powerful fixed-income trading desk. "I believe that Bank of America will win the auction for Lehman Brothers," Bove said in a note today. "There is a natural fit between the two companies." Lehman would also be a great fit for Barclays, which was foiled last year in its bid to acquire ABN Amro, but Bob Diamond, the president of the Barclays investment-banking unit, said this summer that the bank was more interested in acquiring a wealth manager. HSBC of Britain is also thought to be a possible bidder. The big Japanese banks have huge cash war chests, but having been burned before on Wall Street, are more likely to use that for overseas acquisitions of commercial and regional banks. Still, a Japanese newspaper said last week that Nomura Holdings was interested in Lehman. A potential stumbling block is that both Bank of America and Barclays, and presumably any buyer, is demanding that the Federal Reserve promise to backstop Lehman's troubled assets, the way it did with Bear Stearns. But after the Bear rescue was criticized, and following the huge bailouts of Fannie Mae and Freddie Mac, using the government as an emergency A.T.M. again may not be politically feasible. "Lehman's sale is likely to take a different form because there was serious political fallout from the J.P. Morgan-Bear deal," Sean Egan, president of Egan-Jones Ratings told Bloomberg News. "It could be a consortium that buys Lehman, with the Fed's help." Yves Smith on Naked Capitalism speculates that there is brinksmanship going on as the talks head into the weekend. "It appeared during the Bear Stearns negotiations that Jamie Dimon played his position as the only game in town to considerable advantage. The Fed and Treasury would be advised not to make themselves again to be hostage to one bidder, but that may be unavoidable." The most radical change in the last 48 hours has been the recognition by Dick Fuld, Lehman's C.E.O. that a sale is necessary. Long a Wall Street warrior who rose from a Lehman trader to the C-suite, Fuld has a reputation, as Jed Horowitz noted on Portfolio.com, "as a boss who will stop at nothing to enrich the firm's reputation and treasury." No surprise then that his nickname is "Gorilla." But as the New York Times reports, the stunning free fall in Lehman's stock price finally persuaded Fuld that his time was up. "He's shell-shocked, but he knows he has to sell," said one person who recently spoke to Fuld, the Times says. Related Links The Great Depression Debate Rumor Sourcing of the Day The Man Who Saved (or Got Suckered by) Wall Street Source: Portfolio.com: Top 5 | 12 Sep 2008 | 11:30 am Top Pre-Market Analyst Upgrades (DBD, FFIV, FSLR, GILD, GHL, WM)There are surprisingly few analyst calls today, but these are some of the top positive calls and upgrades with more than two hours to the market open:
Jon C. Ogg Source: 24/7 Wall St. | 12 Sep 2008 | 11:28 am Top Pre-Market Analyst Downgrades (DHR, LEH, QSII, SONC, SPWR)There are surprisingly few analyst calls today, but these are some of the top calls we have seen as downgrades with more than two hours to the market open:
Jon C. Ogg Source: 24/7 Wall St. | 12 Sep 2008 | 11:26 am Rumours of Lehman rescue hit "safer" currenciesThe dollar and the yen fell on Friday as rumours of potential suitors for Lehman Brothers, the troubled US investment bank, slightly reassured investors and led them to move away from "safer" currencies...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 11:24 am Home-madeWhy "Made in America" is making a comebackSource: BBC News | Business | World Edition | 12 Sep 2008 | 11:07 am GOP's Palin Could Be Savior of Stock Market (The Agenda)Stocks didn't have a snowball's chance in hell until McCain tapped the Alaska governor.Source: SmartMoney.com | 12 Sep 2008 | 11:04 am GOP's Palin Could Be Savior of Stock Market (Ahead of the Curve)Stocks didn't have a snowball's chance in hell until McCain tapped the Alaska governor.Source: SmartMoney.com | 12 Sep 2008 | 11:04 am Top 5 Energy-Guzzling Appliances (Consumer Action)How to reduce the power drain of some of the biggest offenders in your home and save.Source: SmartMoney.com | 12 Sep 2008 | 11:04 am Banks and miners lift LondonLondon equities were stronger on Friday, boosted by resurgent mining stocks tracking stronger metals prices. A steadier showing in the banking sector also helped the market make progress.The FTSE 100 rose...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 11:00 am Foreclosures hit another record highForeclosures hit another record high in August. There were 304,000 homes in some stage of default last month, and 91,000 families lost their homes.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 10:37 am Bank rally buoys BoursesBanking stocks, a drag for much of the week, helped spur European equity markets to their first gains in four sessions on Friday after reports that the US authorities were steering Lehman Brothers towards...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 10:37 am Japan heads for recession on 3% GDP fallJapan’s economy shrank by the biggest margin in almost seven years during the second quarter of this year as stumbling exports and tougher terms of trade battered Asia’s biggest industrial powerhouse.Source: Latest Business News from Times Online | 12 Sep 2008 | 10:36 am Lehman in the red zoneOn Wednesday, Lehman Brothers CEO Dick Fuld offered up a radical plan to save his beleagured firm. Today the capital markets are giving him the thumbs down.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 10:26 am Emerging Markets Help Ford (F) And GM (GM) Get Their Loans
The case Detroit is making may be bogus. If gas prices keep falling the so-called Big Three might see enough of a renewed interest in their unattractive cars to hang on another year or two. Any Congressional staff member trying to get his boss to look good at hearings on the loans will want to make the case that GM and Ford do well in Latin America and Asia. Why give the auto makers money when they have cash flow from outside the US? Too bad that auto sales in India and China are not what they used to be. China auto sales dropped almost 7% in July when compared with the same month a year ago. India called in its numbers for last month and they reeked. According to The Wall Street Journal, "India's vehicle sales last month fell 4.4% to 94,584 cars from 98,893 cars a year earlier." The trend in India and China may not improve anytime soon. A slowing global economy means that fewer people will move into the middle classes in those nations. That indicates that base of people who can afford a car is not going to improve sharply. Markets that Detroit has been counting on are probably in the process of stagnating. The road to prosperity outside the US may no longer hold such an abounding attraction. At least the beggars from Detroit have another fact to add to the case that they are truly bereft. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 10:24 am Ford's Volvo Car says to cut more staffSTOCKHOLM (Reuters) - Volvo Car Corporation, owned by U.S. automaker Ford Motor Co , said on Friday it was cutting more jobs and bringing forward the closure of one shift at its operations in Sweden as market conditions deteriorate.Source: Reuters: Business News | 12 Sep 2008 | 10:22 am Robert PestonLehman Brothers now in a 'critical condition'Source: BBC News | Business | World Edition | 12 Sep 2008 | 10:18 am Gas prices edge up ahead of stormGasoline prices rose Friday for the third straight day, according to a nationwide survey, as Hurricane Ike's approach to the Texas Gulf Coast shut oil drilling and refining in the region.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 10:16 am Tunnel fire causes further cancellationsCross-channel rail services look set to face months of disruption after an overnight fire which destroyed a whole truck shuttle and looks certain to have caused significant damage to the undersea tunnel's infrastructureSource: FT.com - US homepage | 12 Sep 2008 | 10:15 am Alitalia rescue plan on brink of collapseNegotiations to rescue Alitalia were on the brink of collapse on Friday morning after a group of investors bidding for the loss-making airline said conditions did not exist for the continuation of talks...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 10:14 am French Connection bets on new suit range to lift gloomFrench Connection is smartening up its menswear act in a bid to boost sales after reporting a bigger loss for the first half of the year.Source: Telegraph Business | 12 Sep 2008 | 10:05 am French Connection bets on new suit range to lift gloomFrench Connection is smartening up its menswear act in a bid to boost sales after reporting a bigger loss for the first half of the year.Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 10:05 am Auctioning Off WaMu (WM)
Moody's cut WaMu to "junk". According to Reuters, the ratings agency cut the Seattle-based thrift's senior unsecured debt rating two notches to "Ba2." That will make all the capital the bank needs to raise much harder to come by. Washington Mutual has already forecast a projected a $4.5 billion third-quarter increase in reserves for bad loans. The mortgage bank has good consumer investment and banking businesses. It also has a business banking operation which is likely to be worth a substantial amount. But, those strong businesses do not seem to matter. Washington Mutual's market cap has dropped from $55 billion to $5 billion in less than a year. If Wall Street is right about the value of the company, and its better business units have kept most of their worth, the mortgage assets and derivatives held by the bank have a negative value of $30 billion or $40 billion, on a good day. The government is not going to let WaMu fail, at least in the classic sense. If the nominal value of the company's mortgage paper is so terribly and deeply compromised, a bankruptcy of the firm would undermine the market's valuation of similar assets held by several other banks and brokerage firms. The Fed and Treasury are going to have to take a hard look at what amount of money they will need to put a floor on the value of WaMu's troubled assets. At that point they can be auctioned off to another financial institution or private equity firm based on the assumption that the loans and related investments will regain some of their worth once the housing market begins to recover. A buyer who is willing to wait two or three years might get an outsized return. No one is going to undertake the risk of holding WaMu's bad paper and riding out the storm unless Treasury Secretary Henry Paulson and his friends offer a guaranteed foundation which creates a basic value for the portfolio. It is the only way out for WaMu and for a government trying to salvage the nation's banking system. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 10:02 am The dollar's shining momentAmericans unsettled by a dour economic outlook might take some consolation from a most unexpected source: the rejuvenation of the beaten-down dollar.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 9:53 am Beijing uses forex reserves to target TaiwanThe secretive government agency that supervises China's foreign exchange reserves used its funds to help convince Costa Rica to switch ties from Taiwan to Beijing last year, according to files obtained by the FTSource: FT.com - US homepage | 12 Sep 2008 | 9:48 am China's Own Little Recession: The New Normal
China, and India for the matter, are economies where the status quo is GDP improvement of 10%. For these nations a 3% growth rate is a disaster. China's industrial sector improvement hit its worst patch since 2001. According to Bloomberg, "Output rose 12.8 percent in August from a year earlier." Analysts expected a number closer to 15%. The causes for the problem are well-known. Big consuming nations like the US are not importing what they used to from China because of slowing growth. The overall opportunity for rapid GDP improvement in the world's most populous country is being undermined by troubles in the US and EU. Auto sales in China dropped in July. No one expected that. The nation's middle class is obviously feeling pinched and that could be the start of a long-term trend. Economic assumptions have been that rising exports and improving GDP would swell the ranks of the middle classes in China and India. Farmers would become factory workers. The standard of living for an increasing number of people would skyrocket. That, in turn, would cause the rise of a consumer-driven economy which would replace one based on government spending. The formula has stopped working and it may not start again. If growth in the Chinese economy moderates and remain mediocre for several years, there may be little if any swelling of the middle classes. The people who can afford new cars may peak. The same holds true for the number of citizens who can buy stocks, have savings accounts, or buy real estate. China may be on its way to becoming normal, at least as that is defined by economists in the West. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 9:35 am Japan stocks rebound on Lehman buyout talkJapanese stocks rebounded Friday from sharp losses as investors chased gains in the financial sector amid hopes that a deal to buy troubled U.S. investment bank Lehman Brothers Holdings Inc. would be completed soon.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 9:31 am Asian shares rise on hopes of a Lehman fixMost Asia-Pacific markets managed to post gains on Friday, putting a positive end on a highly volatile week as speculation the Bank of America is in talks to buy Lehman helped take the edge off the strong...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 9:30 am BA will cut 1,400 managers to save £170 millionBritish Airways is offering voluntary redundancy to 1,400 managers, the airline confirmed today, in a bid to cut its wages bill by £170 million.Source: Latest Business News from Times Online | 12 Sep 2008 | 9:21 am Sacyr considers options for Repsol stakeMADRID, Sept 12 (Reuters) - Spanish construction company Sacyr Vallehermoso said on Friday it was looking at all options with respect to its 20 per cent stake in oil major Repsol YPF and did not rule out...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 9:09 am Virgin aims to block BA-AA tie-upVirgin Atlantic's boss launches a campaign to try to block any tie-up between British Airways and American Airlines.Source: BBC News | Business | World Edition | 12 Sep 2008 | 8:07 am Media Digest 9/12/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters says that concerns about Lehman (LEH) spread to Merrill Lynch (MER). Reuters reports that the vice chairman of the Fed said he did not see home prices finding a bottom yet. Reuters reports that the SEC is looking into the drop in shares of United (UAUA) caused by the erroneous bankruptcy story. Reuters reports that shares in GM (GM) and Ford (F) moved up on prospects of a federal loan and lower oil prices. Reuters reports that Lehman (LEH) is seeking a buyer and is in talks with Bank of America (BAC). The Wall Street Journal reports that the Fed and Treasury have been working with Lehman to help resolve the bank's troubles. The Wall Street Journal reports that government officials cannot understand why their actions have failed to calm the markets. The Wall Street Journal reports that regulators are trying to sort out what has caused huge changes in the price of oil. The Wall Street Journal reports that Yahoo! (YHOO) provided an update on the company's plans to open its online services -- including its home page and email service -- to contributions from third-party Internet and software companies. The Wall Street Journal writes that consumer spending should fall sharply in the autumn. The Wall Street Journal reports that the Boeing (BA) strike is causing trouble for key suppliers. The Wall Street Journal reports that sales of cars in India fell. The New York Times reports that many hedge funds are losing money because of the market turmoil. The New York Times reports that investors are turning their anxiety to AIG (AIG). The New York Times reports that companies doing business in China are being forced to unionize. The New York Times reports that the economy in Japan hit a sharp recession in Q2. The New York Times reports that Ford (F) wants to cut 4,000 more workers. The FT writes that the CFTC is working to fight commodities speculation. Bloomberg writes that China's industrial output dropped to the slowest pace in six years. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 7:48 am London shares lifted by stronger minersLondon equities were stronger on Friday, boosted by resurgent mining stocks tracking stronger metals prices. A steadier showing in the banking sector also helped the market make progress.The FTSE 100 rose...Source: Infocious RSS raw feed - channel BNPaperBusiness | 12 Sep 2008 | 7:47 am Home Retail to slash Homebase value by 70%Home Retail Group sent a shudder through the stock market yesterday by revealing the worst sales drop at Argos for nearly a decade. The group plans to write down the value of Homebase, its DIY chain, by about £700 million.Source: Latest Business News from Times Online | 12 Sep 2008 | 7:35 am Asia Markets 9/12/2008 (PTR)
The Nikkei rose .9% to 12,215. ANA rose 1.9% to 377. The Hang Seng rose .3% to 19,439. BOC Hong Kong dropped on a Goldman downgrade. PetroChina (PTR) rose 2%. The Shanghai Composite rose a fraction to 2,080. Data from Reuters Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 7:22 am French Connection extends lossesFrench Connection has blamed rising costs and tighter margins for widening losses at the UK fashion retailer.Source: BBC News | Business | World Edition | 12 Sep 2008 | 7:06 am Mercedes ML320 CDI: Better diesel living through chemistryThe novel method used to treat its exhaust makes this SUV a highway whiz.I refuse to go down the path of juvenile humor simply because the magic ingredient in Mercedes-Benz's new California-legal diesels, such as the ML320 CDI, is urea -- which also happens to be the magic ingredient in urine. That's rule No. 1. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am Pinkberry serves lawsuits to six frozen yogurt shopsThe Los Angeles-based company is accusing the businesses of deliberately emulating its 'highly distinctive branding.'Seeking to freeze out imitators, L.A.-based Pinkberry Inc. filed six lawsuits this week against what it contends are copycat frozen yogurt shops. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am Tech groups ITAA and AeA may merge to gain lobbying cloutA merger would create the tech industry's leading association, ITAA's president says.Most major industries have a dominant trade association to make their case in the nation's capital. Think the Motion Picture Assn. of America for the Hollywood movie studios or the American Petroleum Institute for the oil companies. Those lobbying groups give their industries one powerful voice, making it easier to get their messages heard through the Washington cacophony. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am U.S.-bound flight from New Zealand to showcase ways to save time and fuelThe flight headed for San Francisco will use new technologies and procedures through a Federal Aviation Administration initiative.A major initiative to help cut airline flight times, burn less fuel and reduce harmful carbon emissions is to be presented today by the Federal Aviation Administration at San Francisco International Airport. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am Hollywood banking on star power to lift box office this weekendFour new releases are expected to fight it out in a tight race for No. 1.The fall movie season began with a clunk last weekend when the Nicolas Cage thriller "Bangkok Dangerous," the only major release, lured few fans to theaters. Industry box-office revenue was the skimpiest in five years -- since "Dickie Roberts: Former Child Star" led the charts -- and down compared with last year for the seventh consecutive weekend. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am U.S. may broker rescue of Lehman Bros.As the Wall Street firm teeters, it is feared that a collapse could topple others.Fearing that a failure of Lehman Bros. could topple other financial firms, senior officials of the Federal Reserve and Treasury Department were talking with the struggling company and potential buyers Thursday to try to smooth the way for a sale of the venerable investment bank, people familiar with the situation said. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am Health Net to reinstate 926 dropped policyholders in CaliforniaUnder an agreement with the state, the company also will pay $3.6 million in penalties and as much as $14 million in medical reimbursements it had earlier denied. It does not admit wrongdoing.In a continuing state crackdown on health insurers, Health Net Inc. of Woodland Hills has agreed to offer new coverage -- no questions asked -- to 926 people whose policies it canceled after they got sick. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am Six Degrees Games hopes to become a heavy hitter in the virtual worldNBA, MLB and ESPN brands are expected to give heft to ActionAllStars.com, the Marina del Rey firm's sports portal for kids.Virtual worlds, once a niche market within the video game industry, are heading to the big leagues. Source: L.A. Times - Business | 12 Sep 2008 | 7:00 am Olympics slows Chinese industryThe rate of growth of China's industrial output slowed to a six-month low in August, as factories were closed for the Olympics.Source: BBC News | Business | World Edition | 12 Sep 2008 | 6:35 am Thousands left stranded as BA warns more will go bustUp-to-the-minute travel news | Q&A: what can customers do? | Travellers' tales | XL companies' names and contact details | Countdown to collapse | Passengers furious with airlineSource: Latest Business News from Times Online | 12 Sep 2008 | 6:26 am Currency: Dollar recovers some lost groundThe New Zealand dollar posted some gains today after dropping to a two-year low in the aftermath of yesterday's half a percentage point cut in the official cash rate. The Reserve Bank's decision to make a bigger than expected...Source: New Zealand Herald - Business | 12 Sep 2008 | 5:30 am WaMu says capital is sufficient to fund operations (AP)
Source: Yahoo! News: Business | 12 Sep 2008 | 4:37 am Teen Chic is CheapJeannie Lukin, 19, has no trouble pinpointing where she has cut back her spending this summer."Shopping," Lukin says, without hesitation. "I have enough clothes. At this point it's definitely more of a want than a need." Lukin, who has been a longtime fan of brands like J. Crew and Polo Ralph Lauren, has had to become a savvier shopper. Now, when shopping in her hometown near Albany or at school in Poughkeepsie, New York, she heads for the discount racks first, explores cheaper alternatives like American Eagle, or skips the trip to the mall altogether. Wary of high gas prices, Lukin made the 90-minute drive home from the camp where she worked this summer only twice. But fuel still managed to cut into her cash; to compensate, she has started eating out less. PromoModuleLukin is not alone. Teens across the nation have spent their summer vacations battling high gas prices, competing for jobs in a weak part-time employment market, and making do with smaller contributions from cost-conscious parents. All of which has led teenagers, in the past considered "recession-proof" spenders, to confront the impact of a slowing economy. According to a survey conducted by BIGresearch in July, 60 percent of teenagers said they had become more frugal in the last six months—compared with only 50 percent of adults. "Unequivocally, teen spending is very weak," says Adrienne Tennant, a senior analyst at Friedman, Billings, Ramsey. "Usually teens are a resilient portion of the economy because all spending is discretionary, but this time around, gas prices are clearly eating up budgets." As young adults are forced to make spending trade-offs, it's provided a window into their priorities. The takeaway? Clothing, once the sinkhole of teen pocket money, is losing its allure. In April, Piper Jaffray released a semi-annual survey of teens that said that teen spending on fashion was down a whopping 20 percent from a year earlier. By August, major teen retailer Abercrombie & Fitch saw its same-store sales fall 11 percent, and American Eagle ended the month down 5 percent. Pacific Sunwear saw a 6 percent drop for the month, while Limited Brands fell 7 percent. Comparable store sales at Gap decreased by 8 percent. Retailers tend to count on a big boost in August when high school and college students restock their wardrobes for the fall, but this year, that lift hasn't materialized. Teenagers are trading down to less expensive retailers, buying fewer items, and waiting for sales and bargains. "While teenagers may be having personal issues with their own budgets, they've also been seeing what their parents are going through," says Ellen Davis, a senior vice president at the National Retail Federation. "Teens are cognizant of their parents' financial situations, and follow their example by looking for good deals and bargains before they buy." PromoModuleWhile Davis says that wearing the "right brands" will always be important teenagers, a widespread increase in budget consciousness seems to have propelled less expensive brands into the trend spotlight. Among the "three A's" that dominate teen retailing—Abercrombie & Fitch, American Eagle, and Aéropostale—the only one currently growing sales is Aéropostale, the cheapest of the three. "At Aéropostale, the one with the least brand equity, logo merchandise is actually driving the business," says Tennant. "That shows that teens are willing not only to wear the least expensive of the three brands, but to advertise that that's what they're wearing." Jeff Klinefelter, a senior research analyst at Piper Jaffray, also says that in addition to cutting back on apparel purchases, his teens are eating out less often and going to fewer concerts and movies. One place where spending has held up in the face of budget constraints seems to be cell phones and text-message services, as well as music downloads. "The teen perspective is that communicating through cell phones and text messaging and having digital music seem to be, in a sense, necessities," says Klinefelter. Part of this shift in interest from apparel to electronics might be due to a "mature" position in the fashion cycle, Klinefelter says, where trends have changed little enough from last fall to necessitate only minor wardrobe updates. But it also indicates a larger generational shift in priorities; teens care more about connecting and communicating than expanding their wardrobes, and it's the latest and greatest electronics rather than fashion accessories have become the "must-haves." "Teenagers used to want to spend money on a new pair of jeans, and now they want to spend it on iPods," says Davis. Looking ahead, no one expects teens to regain their lust for apparel in time for the holidays. "Back-to-school is very indicative of where these kids shop for holiday and how much they spend," says Tennant. "What we saw was waiting to the last minute, and only coming in with coupons." That, and holiday season will have one fewer selling weekends than last year—all of which adds up to a blue Christmas in teen retail. Related Links Bosses' Bargain Bin Who.A.They? Smiling on Wal-Mart Source: Portfolio.com: Top 5 | 12 Sep 2008 | 4:00 am ANZ National Bank joins rivals and cuts mortgage ratesThe last hold-out among the big retail banks - ANZ National, has joined the team and cut its mortgage rates on the back of yesterday's Reserve Bank' shock .50 per cent cut in the Official Cash Rate. All the main banks cut their...Source: New Zealand Herald - Business | 12 Sep 2008 | 3:00 am Big profit slump at The Warehouse -down 21pcRetailer The Warehouse Group has posted a 21 per cent fall in annual net profit to $90.8 million, hit by economic slowdown and pressure on household budgets. The profit for the year to July 27 compared to $114.8m the previous year...Source: New Zealand Herald - Business | 12 Sep 2008 | 1:30 am AIG woes knock its market value below peersNEW YORK (Reuters) - Fears that American International Group Inc's large mortgage exposure could trigger another round of losses has rankled investors so much that the insurer has lost its iron grip as the world's industry leader by market value.Source: Reuters: Business News | 12 Sep 2008 | 1:15 am NZX refers Dominion Finance matters to Securities CommissionThe stock exchange is continuing inquiries into Dominion Finance Holdings (DFH) after referring some matters concerning the company to the Securities Commission. Yesterday DFH, whose finance company is in receivership, said it...Source: New Zealand Herald - Business | 12 Sep 2008 | 1:00 am Palin takes tough line on RussiaSarah Palin, the running mate of Republican presidential candidate John McCain, said the US would be obligated to go to war with Russia if it invaded a Nato ally – a status she advocated for Georgia, which Russia invaded last monthSource: FT.com - US homepage | 12 Sep 2008 | 12:42 am Lehman races to find buyer or investorLehman Brothers was in talks with potential buyers – including Bank of America – in a last-ditch attempt to stave off collapse after investors gave a thumbs-down to its survival plansSource: FT.com - US homepage | 12 Sep 2008 | 12:26 am In Brief - ThursdaySpartech (SEH), a plastics maker, said Q3 EPS fell 48% to 16 cents ex items, meeting views. Sales fell 3% to $350 mil. It rose 2.4% to 10.13.Source: Investor's Business Daily: BUSINESS | 12 Sep 2008 | 12:18 am Trends & Innovations - ThursdayAmericans chat up text messagingSource: Investor's Business Daily: BUSINESS | 12 Sep 2008 | 12:18 am After The Close - ThursdayLOCKHEED MARTIN (LMT), the defense contractor, got a $5.6 bil deal to provide tactical and nontactical wheeled vehicle support for all U.S....Source: Investor's Business Daily: BUSINESS | 12 Sep 2008 | 12:18 am Housing Slump Makes Real Estate A Lawyer's New Home CourtThe housing crisis has wreaked havoc on the economy. But it is proving a boon for a profession that feeds off society's woes: lawyering.Source: Investor's Business Daily: BUSINESS | 12 Sep 2008 | 12:18 am Business Briefs - ThursdayRIM touts deals, eyes consumers. The BlackBerry maker unveiled a range of partnerships tied to its push to attract mainstream consumers. Research...Source: Investor's Business Daily: BUSINESS | 12 Sep 2008 | 12:18 am Online University Taps Into An Active-Duty Military Student BodyMarching to a military beat has its rewards, as postsecondary educator American Public Education has found.Source: Investor's Business Daily: BUSINESS | 12 Sep 2008 | 12:18 am Lehman Brothers searches for white knightLehman Brothers is actively searching for a white knight to buy the bank with the help of the US government after investors rejected chairman Dick Fuld's plan to split Lehman in two, sending its shares down as much as 42pc.Source: Telegraph Business | 12 Sep 2008 | 12:01 am US investment banks are accused of aiding offshore tax avoidanceA clutch of leading investment banks have been accused of creating devices to allow offshore hedge funds and their investors to avoid paying millions of dollars of US taxes.Source: Telegraph Business | 12 Sep 2008 | 12:01 am City news (Mon-Fri)City news (Mon-Fri)Source: Telegraph Business | 12 Sep 2008 | 12:01 am Co-operative Bank upbeat but warns on debtsThe Co-operative Bank has bucked trends in the financial sector by increasing profits despite the credit crisis but the mutual lender warned of rising bad debts as higher energy prices start to bite.Source: Telegraph Business | 12 Sep 2008 | 12:01 am Morrison's profits rise as shoppers seek valueSupermarket retailer Wm Morrison has delivered a 12pc increase in pre-tax profits - but shares in the group fell as management warned that trading got "tougher every day".Source: Telegraph Business | 12 Sep 2008 | 12:01 am XL Leisure being put into administrationBy Jonathan Sibun and Rowena MasonSource: Telegraph Business | 12 Sep 2008 | 12:01 am Premier Farnell lights up the electronics fieldElectronic parts distributor Premier Farnell continued to outperform its US and UK markets, with half-year results lit up by demand from designers of electronic medical equipment and high brightness television and PC screens.Source: Telegraph Business | 12 Sep 2008 | 12:01 am The Secrets of CEOs: Leading through fellowship is the way ahead in globalised ageHow will chief executives lead in the future and respond to the new challenges posed by globalisation, sustainability, the next wave of the internet, the credit crisis and the ongoing war for talent? Steve Tappin and Andrew Cave's new book, The Secrets of CEOs, brings together 150 top global chief executives to give readers a unique insight into how the most successful brains see the future.Source: Telegraph Business | 12 Sep 2008 | 12:01 am Kiwi dollar down to 2-year low against US$ and YenThe New Zealand dollar dropped to a two-year low against the greenback in the aftershocks from yesterday's half a percentage point cut in official interest rates. The Reserve Bank's decision to make a bigger than expected interest...Source: New Zealand Herald - Business | 11 Sep 2008 | 11:30 pm Abbey rate cut gives a glimmer of hope to small deposit borrowersAbbey has signalled that it will reopen its doors to borrowers with smaller deposits after cutting rates on one of its mortgage deals.Source: Latest Business News from Times Online | 11 Sep 2008 | 11:00 pm How the credit crunch is affecting consumers around the worldThe French are drinking tap water, fashion-conscious Italians have turned to second-hand clothes and car-loving Americans are taking the train.Source: Latest Business News from Times Online | 11 Sep 2008 | 11:00 pm Better off pay for energy efficiencyInsulating your loft can be a hazardous affair. Gordon Brown appeared to put a foot through the ceiling yesterday as he scrambled to prevent an escape of voter warmth over soaring energy prices.Source: Latest Business News from Times Online | 11 Sep 2008 | 11:00 pm Stable image pays dividends for Co-op in credit crunchThe Co-op reported a boom in the sales of bank accounts in the first half as savers flocked to safe and stable brand names amid the turmoil of the credit crunch.Source: Latest Business News from Times Online | 11 Sep 2008 | 11:00 pm Skills shortages could force up oil pricesRunaway costs and an acute shortage of skilled workers are putting future oil developments at risk and could keep upward pressure on the oil price, the chief executive of Total said yesterday.Source: Latest Business News from Times Online | 11 Sep 2008 | 11:00 pm Wall St makes stunning comeback, Dow up 164 pointsNEW YORK - Stocks made a stunning comeback on Thursday, as investors snapped up some of the financial sector's stronger players and pumped money into the materials and transportation sectors. The Dow Jones industrial average rose...Source: New Zealand Herald - Business | 11 Sep 2008 | 11:00 pm NZ Shares: Warehouse shares add 2.5pc after profit resultShares in retailer The Warehouse rose 9c in early trade, despite reporting a 21 per cent fall in annual net profit as the economic slowdown and pressure on household budgets hit profitability. The share price was up 2.8 per cent...Source: New Zealand Herald - Business | 11 Sep 2008 | 10:32 pm Democrats on Capitol Hill fear Obama falloutDemocratic jitters about the US presidential race have spread to Capitol Hill, where some members of Congress are worried that Barack Obama's faltering campaign could hurt their chances of re-electionSource: FT.com - US homepage | 11 Sep 2008 | 10:30 pm 13 Simple Ways to Lower Your Electric Bill (Genworth Financial Fitness)Simple ways to keep electricity prices from overpowering your budget.Source: SmartMoney.com | 11 Sep 2008 | 9:48 pm 13 Simple Ways to Lower Your Electric Bill (Deal of the Day)Simple ways to keep electricity prices from overpowering your budget.Source: SmartMoney.com | 11 Sep 2008 | 9:48 pm Global market turmoil behind double cutTurmoil in international financial markets loomed large in the Reserve Bank's surprise decision to cut the official cash rate 50 basis points to 7.5 per cent yesterday - the steepest cut since2001. Governor Alan Bollard has recently...Source: New Zealand Herald - Business | 11 Sep 2008 | 9:30 pm 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 | 9:07 pm VIX Index of U.S. Stock Option Prices Retreats 0.5% to 24.39Source: Bloomberg - All Podcasts | 11 Sep 2008 | 9:04 pm On the Ball: Brady's Injury, Fan Behavior, Mets' ChancesSource: Bloomberg - All Podcasts | 11 Sep 2008 | 9:01 pm Legacy Asset's Hartzell Long on Consumer Staples ETFsSource: Bloomberg - All Podcasts | 11 Sep 2008 | 8:56 pm Blog: This time, it's a 'targeted panic' in the financial sectorSource: L.A. Times - Business | 11 Sep 2008 | 8:56 pm Photographer McMullan Launches New iPhone-Only MagazineSource: Bloomberg - All Podcasts | 11 Sep 2008 | 8:49 pm Author Boncompagni Says `Gilding Lily' About Own LifeSource: Bloomberg - All Podcasts | 11 Sep 2008 | 8:48 pm Global equity trading falls 37%The volume of equities and derivatives traded on global exchanges declined sharply in August as hedge funds and investment banks scaled back operations, raising concerns that reduced market liquidity might be exacerbating price swingsSource: FT.com - US homepage | 11 Sep 2008 | 8:46 pm Murdoch opens JCDecaux talksRupert Murdoch has begun exclusive talks with JCDecaux to exchange his eastern European billboard business for cash and a stake in the French outdoor advertising group, days after Russian authorities raided the divisionSource: FT.com - US homepage | 11 Sep 2008 | 8:42 pm Wal-Mart Shareholders Benefit From Judge's Pay RulingSource: Bloomberg - All Podcasts | 11 Sep 2008 | 8:34 pm Palin's Problem Isn't the News Media's ElitismSource: Bloomberg - All Podcasts | 11 Sep 2008 | 8:24 pm CFTC moves to curb commodity speculationThe main US regulator of commodity markets told Congress it was imposing 'enhanced control' on dealing by Wall Street banksSource: FT.com - US homepage | 11 Sep 2008 | 8:18 pm States hit hard by higher jobless claimsWith the jobless rate up over 6 percent, more people are receiving unemployment benefits and staying on unemployment. That means states are struggling more to pay the bill. Dan Grech reports.Source: Marketplace | 11 Sep 2008 | 8:13 pm Ag exports are too big for containersAgricultural exports have been going strong but American farmers are frustrated because they could be exporting even more, if not for a bottleneck in shipping. Scott Tong reports.Source: Marketplace | 11 Sep 2008 | 8:13 pm Trade may not deter Russia from warCommentator Dan Drezner says economic modernization is considered to be a good buffer against war for most countries. But in Russia's case, standard ways of thinking may not apply.Source: Marketplace | 11 Sep 2008 | 8:13 pm Why don't athletes just stay retired?Lance Armstrong's out of retirement and training for next year's Tour de France. NFL Quarterback Brett Favre also ran a retirement reverse. Why can't they stay away? Business of sports commentator Diana Nyad discusses that question with Tess Vigeland.Source: Marketplace | 11 Sep 2008 | 8:13 pm New life, business comes to Wall StreetWhen the credit crunch hit about a year ago, Wall Street was just recovering from losing thousands of jobs to recession and the World Trade Center attacks in 2001. Amy Scott reports on how the rebuilding effort is doing amid the economic downturn.Source: Marketplace | 11 Sep 2008 | 8:12 pm McDonald's targets Starbucks attitudeWe've been hearing a lot lately about negative TV ads stirring up America's ongoing culture wars. Some new ones are about to come out, not from one political candidate attacking another, but from McDonald's attacking Starbucks. Rico Gagliano reports.Source: Marketplace | 11 Sep 2008 | 8:12 pm Tax-avoidance schemes draw scrutinySeveral investment banks have been helping foreign clients evade millions of dollars in U.S. taxes, a Congressional report says. But the transactions have been around for years. Jeremy Hobson reports.Source: Marketplace | 11 Sep 2008 | 8:12 pm Banks join list of credit-crunch victimsWhile everyone has been watching the mortgage-meltdown struggles of the major investment firms, another financial industry has been taking a huge hit. Stacey Vanek-Smith reports on difficulties ahead for big banks and S&Ls.Source: Marketplace | 11 Sep 2008 | 8:12 pm Analyst Hintz Doesn't Expect Lehman `Funding Meltdown'Source: Bloomberg - All Podcasts | 11 Sep 2008 | 8:10 pm Exchange rate puts Rakon profit in middle range, says firmGlobal Positioning Systems (GPS) maker Rakon expects to achieve an average exchange rate for the year of US72c, which should put its operating profit in the middle of the range expected by brokers. The company told shareholders...Source: New Zealand Herald - Business | 11 Sep 2008 | 8:00 pm Koch Says Prosecute War Demonstrators, Government OfficialsSource: Bloomberg - All Podcasts | 11 Sep 2008 | 7:28 pm Rollercoaster ride not over yetThe drop in the official cash rate has been welcomed by business and worker groups but has been used to highlight concern with monetary policy. The Manufacturers and Exporters Association (NZMEA) said the move was a good one but...Source: New Zealand Herald - Business | 11 Sep 2008 | 7:00 pm Putin denies Georgia link to market woesVladimir Putin admitted that foreign capital inflows could fall by up to 45 per cent this year, but rejected suggestions that turmoil in Russia's financial markets was caused by the conflict in GeorgiaSource: FT.com - US homepage | 11 Sep 2008 | 6:57 pm Dentist Trial Begins as U.K. Regulator Tackles Insider TradingSource: Bloomberg - All Podcasts | 11 Sep 2008 | 6:53 pm Airbus Starts a Jumbo WarAirbus certainly isn't wasting time sticking it to Boeing. Just days after a machinist strike brought Boeing's assembly lines to a screeching halt, the boys in Toulouse are doing their best to score some orders at the American company's expense. Airbus announced yesterday that starting in 2010, it will offer a higher gross weight version of its popular A330-200. The modified version of the plane will have a max takeoff weight of 238 tons, five tons more than the current model. Airbus hopes that'll position the plane as a viable alternative Boeing's much hyped and much delayed next-gen mega-jet, the 787 Dreamliner. Derek Davies of Airbus says A330-200 v2.0 will have a range of 6,840 nautical miles, up from the current model's 6,750. Compare that to the first batch of 787s with their max takeoff weight of 219.5 tons and max range of 6,720 nm and Airbus makes a decent case but for one thing... The numbers the company's so gleefully throwing around don't mesh with Boeing's. Boeing execs say the 787-800 will have a range of 7,650 to 8,000 nautical miles, which beats even the modified A330, and they insist Boeing has "an aggressive program in place to meet those targets." Asked about the discrepancy, Davies got all James Bond and said Airbus based its analysis on "market intelligence" and believes Boeing's new jet is heavier and has a two-percent higher fuel burn than originally thought, as well as being heavier. To keep things in perspective, Boeing has orders for more than 800 787s, while Airbus' rival product, the A350 XW, has racked up fewer than 350. But that doesn't mean Airbus can't do some damage, especially if the Boeing strike ends up being a drawn out affair. Related LinksSuperjumbo Flight Delay Boeing and Airbus Go Head to Head Oasis in the Desert: Airbus Lands a Jumbo Emirates Order Source: Portfolio.com: Top 5 | 11 Sep 2008 | 5:30 pm Who Might Buy Lehman?Lehman Brothers is officially in crisis mode. Officials from the Treasury Department and the Federal Reserve Bank of New York are reportedly on the scene, and that means one thing: Find a buyer now! Both the Wall Street Journal and CNBC are reporting that Bank of America has had preliminary discussions about a possible deal. The giant bank could certainly afford Lehman, but it is a surprising suitor given that a) BofA is already engaged in the process of integrating another troubled financial firm, mortgage lender Countrywide Financial and b) Ken Lewis, the bank's C.E.O., last talked about the investment banking business in the same way that people politely make reference to the fact that sewage has flooded their basement. Who's left? The End of Lehman Lehman Gets a Second Look Saving Wall Street From Itself Source: Portfolio.com: Top 5 | 11 Sep 2008 | 5:30 pm Russian markets, banks under pressure (AP)AP - Russia's top central banker warned Thursday the country's banking sector faces a liquidity shortage, just hours after President Dmitry Medvedev sought to restore calm to Russia's battered stock markets and boost its investment image.Source: Yahoo! News: Business | 11 Sep 2008 | 4:53 pm Fear in Their EyesDick Fuld, Wall Street's starchiest and longest-serving C.E.O, relishes his image for truth-telling as much as his oft-touted penchant for pugnacity.
It's certainly not fooling shareholders. Lehman shares, which traded close to $68 in the past year, is approaching penny-stock territory, falling as low as $3.88 earlier today after plunging 55 percent on Tuesday and Wednesday. And the cost of insuring the firm's debt spiked up. "Confidence and perception issues are overwhelming Lehman's franchise value," a Citigroup analyst, Prashant Bhatia, wrote today. Investors weren't persuaded by the radical but far-from-complete plans Fuld hurriedly disclosed on Wednesday to sell most of Lehman's profitable investment management division and to unload some $30 billion of still-deteriorating mortgages and related assets into an independent "bad" bank that Lehman shareholders would own. And they're still choking at the $6.7 billion of losses that Lehman—the smallest of Wall Street's Big Four investment banks and the one with the closest profile to the late Bear Stearns—recorded in the last two quarters. The same could be said about his difficulty in selling the company's asset-management unit, which includes its Neuberger Berman fund franchise. Lehman officials left analysts scratching their heads yesterday by saying that though they are close to a sale of about 55 percent of the division they expect to retain a majority of the unit's income after the sale. Shortly before buying Neuberger Berman in 2003, Fuld said money-management was Lehman's one biggest gap, but acknowledged that he was wary of overpaying for an acquisition. Now he doesn't want to give it up, though a sale is integral to gaining the capital Lehman needs to finance the new bad-loan bank. Moreover, a sale is likely to accelerate Lehman's risks, since it would probably sell most of the business to a private equity firm that will require financing from the broker. Lehman officials conceded on Wednesday that may happen, but they also said they will continue to prosper by retaining the most profitable parts of the division—including Lehman's minority investments in several hedge funds (though some are now in the doghouse) as well as its profitable middle-market money management operations. There's also a family-jewels element to the asset-management sale. Without the division that provides steady fees for its assets under management, Lehman's entire business profile becomes more risky. It will be left even more dependent on its trading businesses, which require much more capital and are more vulnerable to economic cycles. Fuld built his career on his smarts as a bond trader, and at least four times in his career has saved Lehman from crises that doomsayers said spelled its end. But in this crisis he may have played his last card. The Federal Reserve's decision to let large bond dealers like Lehman borrow directly from the central bank should have eradicated fears it would suffer the same liquidity stress as Bear Stearns, Fuld said last spring. Related Links Awaiting Citi's Big Number Jittery Investors Face an Anxious Week Ahead Not Whether or When, but How Much? Source: Portfolio.com: Top 5 | 11 Sep 2008 | 1:30 pm
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Oil refiners have had a very tough year. Since January, Marathon (NYSE:MRO) stock is off nearly 30%, Valero (NYSE:VLO) is off more than 50%, and Tesoro (NYSE:TSO) is off more than 60%. All got a bit of a boost yesterday as a result of the approaching hurricane and refinery shutdowns caused by the storm. Valero's Port Arthur refinery (325,000 b/d), Shell's (NYSE:RDS.A/RDS.B) Motiva refinery in Port Arthur (285,000 b/d), and Exxon's (NYSE:XOM) Beaumont refinery (349,000 b/d) plan to shutter operations today. But the outlook could be stronger and longer term than that.
