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Alitalia 'running out of fuel'Italy's Alitalia airline cannot guarantee flights beyond Sunday because of a lack of funds to buy fuel, an official says.Source: BBC News | Business | World Edition | 13 Sep 2008 | 2:42 pm Gas prices rise as Ike hits TexasGas prices rose for the fourth straight day as Hurricane Ike slammed the Texas Gulf Coast early Saturday morning.Source: Business and financial news - CNNMoney.com | 13 Sep 2008 | 2:26 pm Walgreen offers $2.8B for Longs Drug StoresRead full story for latest details.Source: Business and financial news - CNNMoney.com | 13 Sep 2008 | 2:24 pm Oil ends up after dip below $100Oil prices zig-zagged Friday, briefly dipping below $100 a barrel for the first time in 5 months, as the the fury of a massive hurricane blowing toward refineries on the Texas coast countered .concerns about a global economic slowdown.Source: Business and financial news - CNNMoney.com | 13 Sep 2008 | 1:35 pm NY Fed holds emergency Lehman meetingAs Wall Street continues to speculate about the fate of Lehman Brothers, shares of the besieged firm fell again Friday, prompting the New York Federal Reserve to hold an emergency meeting Friday night to discuss the firm's future.Source: Business and financial news - CNNMoney.com | 13 Sep 2008 | 1:23 pm Stranded Britons returning to UKHolidaymakers stranded abroad following the collapse of the tour operator XL are starting to arrive back at UK airports.Source: BBC News | Business | World Edition | 13 Sep 2008 | 1:09 pm NewsWatch: N.Y. Fed calls meeting to forestall Lehman collapseAs U.S. Treasury officials made it clear the government will not bail out Lehman Bros., the Federal Reserve Bank of New York meets with Wall Street executives in an effort to forestall the collapse of the investment firm and shore up rapidly weakening financial markets.Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 1:00 pm Walgreen offers to buy Longs for $3 billion including debtNEW YORK (Reuters) - Walgreen Co said on Friday that it offered to buy Longs Drug Stores Corp for $75 per share in cash, or $3 billion including debt, countering an offer from rival CVS Caremark that had been spurned by top investors.Source: Reuters: Business News | 13 Sep 2008 | 12:36 pm Live Report From Jon Ogg At 24/7 Wall St. Houston BureauPo Jon Ogg reported live from our Houston bureau described a storm which is as bad as it could be for the huge metro area. If these conditions hit the refineries along the coast, there is a very good chance the large refineries new the Port of Houston could be closed for weeks, driving gas prices up. In some areas in the Southwest, petrol has already hit $6 a gallon. The human toll could be tremendous. Several thousand people did not leave Galveston which has been overrun by the storm surge. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Sep 2008 | 12:30 pm Personal Finance Daily: The week's 10 best Personal Finance stories: Sept. 8-12In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Sept. 8-12:Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 12:01 pm Ike slams into Texas coastlineHurricane Ike barrelled into the densely populated Texas coast near Houston, bringing with it a wall of water and ferocious winds and rain that could cripple the fourth-largest US citySource: FT.com - US homepage | 13 Sep 2008 | 11:49 am GM to provide $10.6 billion to support DelphiDETROIT (Reuters) - Delphi Corp said on Friday that former parent General Motors Corp had agreed to provide an additional $4.6 billion in financial support to speed the auto parts maker's emergence from bankruptcy.Source: Reuters: Business News | 13 Sep 2008 | 11:36 am EADS threatens not to bid for U.S. tanker: reportBERLIN (Reuters) - European aerospace group EADS is considering whether to bid in a U.S. air tanker competition after the United States cancelled it for now, Germany's Der Spiegel weekly reported on Saturday.Source: Reuters: Business News | 13 Sep 2008 | 11:32 am EADS threatens not to bid for U.S. tanker: reportBERLIN (Reuters) - European aerospace group EADS is considering whether to bid in a U.S. air tanker competition after the United States cancelled it for now, Germany's Der Spiegel weekly...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 11:32 am Lehman (LEH) May Or May Not Be Sold, May Or May Not Get Government Help, May Or May Not Sell Assets, May Or May Not Remain Independent
That would mean the company would have to announce plans by 7 PM eastern time on Sunday. Depending on which medium is reporting, Lehman's situation may or may not have been resolved. According to The Wall Street Journal, The Federal Reserve Bank of New York had takes with head of major investment banks yesterday to try to figure out what would become of Lehman. "The group, which consisted of the heads of most major financial institutions, is expected to meet throughout the weekend to see if it can agree on some way to rescue the ailing firm." According to Reuters, Bank of America (BAC) may or may not buy Lehman. The news service writes that "the No. 2 U.S. bank by assets, was considering a joint bid for Lehman along with private equity investor JC Flowers and sovereign wealth fund China Investment Co." According to Bloomberg, Lehman may or may not sell its asset management operations, including Neuberger Berman, to save itself and stay independent. "Lehman received bids for its asset-management unit from private- equity firms including Bain Capital LLC and Clayton Dubilier & Rice Inc., said people familiar with the situation." These offers value the Lehman unit at about $5 billion. Lehman's entire market cap is only $2.5 billion. According to the FT, Lehman may or may not make it at all and will simply fail. Writing about any potential deal to salvage the company the FT reports "People close to the discussions said Lehman’s $33bn portfolio of commercial real estate could prove a stumbling block for any deal. Potential buyers could be deterred by fears of further writedowns on the assets." None of these reports may or may not be right. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Sep 2008 | 11:20 am Bankruptcy chief calls urgent Alitalia union talksROME (Reuters) - The bankruptcy commissioner in charge of Alitalia has called the airline's unions to an urgent meeting at 1200 GMT on Saturday, Alitalia said in a statement.Source: Reuters: Business News | 13 Sep 2008 | 11:16 am Wide financial sector fears to drive marketNEW YORK (Reuters) - Even if the fate of Lehman Brothers is resolved this weekend, Wall Street is likely to remain on edge next week because of fears over the health of other big financial companies.Source: Reuters: Business News | 13 Sep 2008 | 11:15 am Bankruptcy chief calls urgent Alitalia union talksROME (Reuters) - The bankruptcy commissioner in charge of Alitalia has called the airline's unions to an urgent meeting at 1200 GMT on Saturday, Alitalia said in a statement.Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 10:49 am EU finance ministers try to tackle soaring pricesEU governments started talks Saturday on ways to curb soaring prices that have hit their economy hard by holding back consumer spending. Faced with higher prices at the gas pump and...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 10:32 am Shell extends force majeure at Nigerian terminalAnglo-Dutch oil giant Shell has extended force majeure on Nigerian light crude oil exports from its Bonny terminal after the discovery of further pipeline leaks, a spokesman said Saturday.Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 9:47 am Wide financial sector fears to drive marketNEW YORK (Reuters) - Even if the fate of Lehman Brothers is resolved this weekend, Wall Street is likely to remain on edge next week because of fears over the health of other big financialSource: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 9:35 am Asia Markets: Banks fuel rally across most Asia after bloody weekAsia markets rebound on Friday, with financials such as Mizuho Financial Group and Macquarie Group rallying after a rebound on Wall Street and on news Lehman Brothers was looking for a buyer.Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 9:32 am XL holiday firm collapse: Stranded passengers begin journeys homeHolidaymakers stranded abroad after the collapse of XL Leisure Group have started to make their way home.Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 8:20 am XL holiday firm collapse: Stranded passengers begin journeys homeHolidaymakers stranded abroad after the collapse of XL Leisure Group have started to make their way home.Source: Telegraph Business | 13 Sep 2008 | 8:20 am Los Angeles train crash: Twenty people feared dead as rescue continuesThe chief executive of tour operator Thomas Cook has slammed the Government's "nonsensical" policy that protects only some of the passengers stranded by the collapse of XL Leisure.Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 8:16 am Los Angeles train crash: Twenty people feared dead as rescue continuesThe chief executive of tour operator Thomas Cook has slammed the Government's "nonsensical" policy that protects only some of the passengers stranded by the collapse of XL Leisure.Source: Telegraph Business | 13 Sep 2008 | 8:16 am Studios shift movie schedules after delay of Harry Potter filmIn the Harry Potter stories, wizards play chess with life-size, animated pieces.Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Air New Zealand passengers take a ride on the 'perfect flight'The airline uses the latest technology and procedures to save fuel, cut flying time and curb harmful carbon emissions on a trip from Auckland to San Francisco. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Walgreen launches surprise bid for LongsThe drugstore chain hopes its $3-billion offer wrests its target away from CVS Caremark. Drugstore giant Walgreen...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Good news for Twinkies lovers: Buyout firm to help bankrupt Interstate Bakeries Corp.The maker of Hostess snacks and Wonder Bread ends a standoff over a new contract with the Teamsters, allowing it to reorganize with financial backing from Ripplewood Holdings. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Hurricane Ike being felt at the gas pumpThe shutdown of refineries and pipelines that stand in the storm's path is already pushing up prices in some areas. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Stocks end mixed; energy stocks rise, Lehman fallsNEW YORK -- Stocks are finishing another volatile day narrowly mixed, as steep declines by some of Wall Street's marquee financial firms outweighed gains in the energy, utilities and materials sectors...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Lehman's fate hangs over marketsMajor indexes finish a tumultuous week in positive territory despite concerns over the investment bank.Stocks finished another volatile session narrowly mixed Friday as gains in the energy, utility and raw-material sectors offset some of Wall Street's angst over the fate of Lehman Bros. Holdings . Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am Retail spending slides in August despite big drop in wholesale pricesThe 0.3% decline in sales raises new worries about a possible recession now that the distribution of economic stimulus payments has come to an end. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am U.S. reportedly plans no bailout of Lehman Bros.Federal officials and financial leaders huddle late Friday to consider ways to rescue the Wall Street giant without taxpayer aid. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Sep 2008 | 7:00 am Has the housing market hit bottom?Low prices and interest rates push some buyers off the fence. Experts warn of another wave of foreclosures.With mortgage interest rates edging down and the price of homes a good 30% below their peak in Southern California, Ryan Ratcliff made a decision on the minds of many: He decided to buy a house. ¶ Ratcliff, a University of San Diego economist who makes his living forecasting the housing market, hopes to close escrow next week on a three-bedroom house in a northern San Diego neighborhood known for its good schools. ¶ "I may not have exactly timed the bottom," said Ratcliff, who paid 25% less than what the foreclosed house sold for in 2006, "but I think we're close enough that I'm comfortable." ¶ Slowly, excruciatingly, buyers are beginning to return to the housing market. ¶ Home shoppers report competition for the cheapest foreclosures, and agents say business is picking up. Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am WaMu's wild and rumor-filled weekWith its CEO ousted and the stock sinking, speculation grows about a takeover.Another day of speculation capped a shaky week for shares of Washington Mutual Inc., the nation's biggest savings and loan and now a magnet for takeover rumors. Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am Studios shift movie schedules after delay of Harry Potter filmIn the Harry Potter stories, wizards play chess with life-size, animated pieces.Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am Air New Zealand passengers take a ride on the 'perfect flight'The airline uses the latest technology and procedures to save fuel, cut flying time and curb harmful carbon emissions on a trip from Auckland to San Francisco.New Zealanders showed the Federal Aviation Administration a thing or two Friday about flying into the future. Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am If Lehman fails, would you feel it?Some see struggling investment bank as a test case for Wall Street and the economy.Wall Street now knows that investment banking titan Lehman Bros. Holdings Inc. could fail within days. Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am Good news for Twinkies lovers: Buyout firm to help bankrupt Interstate Bakeries Corp.The maker of Hostess snacks and Wonder Bread ends a standoff over a new contract with the Teamsters, allowing it to reorganize with financial backing from Ripplewood Holdings.Interstate Bakeries Corp. and the Teamsters union ended their standoff over a new union contract, allowing the bankrupt maker of Hostess Twinkies to reorganize with financial backing from buyout firm Ripplewood Holdings. Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am U.S. reportedly plans no bailout of Lehman Bros.Federal officials and financial leaders huddle late Friday to consider ways to rescue the Wall Street giant without taxpayer aid.The stage was set Friday for America's rattled financial system to face a possibility that Washington has so far sought to avoid: that one of the nation's big investment houses would collapse without government aid to soften the blow. Source: L.A. Times - Business | 13 Sep 2008 | 7:00 am Market Snapshot: U.S. stocks hang on Lehman's fateThe direction of U.S. stocks next week will largely depend on the fate of Lehman Brothers amid widespread speculation that the beleaguered 158-year-old investment firm may be bought out or bailed out before the weekend is over.Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 4:01 am Stocks to Watch: Stocks in focus for MondayAmong the companies whose shares are expected to see active trade in Monday's session are Pall Corp., Kroger Co. and American International Group Inc.Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 4:01 am N.Y. Fed calls meeting to forestall Lehman collapseAs U.S. Treasury officials made it clear the government will not bail out Lehman Bros., the Federal Reserve Bank of New York meets with Wall Street executives in an effort to forestall the collapse of the investment firm and shore up rapidly weakening financial markets.Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 4:00 am Walgreen offers to buy Longs for $3 billion including debt (Reuters)
Source: Yahoo! News: Business | 13 Sep 2008 | 3:35 am Statement by Lorena Hernandez, Acting Chair of the California Student Aid CommissionRANCHO CORDOVA, Calif., Sept. 12 /PRNewswire-USNewswire/ -- "I'm disappointed by the removal of Peter Hankwitz as Commissioner of the California Student Aid...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 3:24 am Fed holds crisis talks as Lehman hunts for buyer (Reuters)
Source: Yahoo! News: Business | 13 Sep 2008 | 3:21 am Fed holds crisis talks as Lehman hunts for buyerWASHINGTON/NEW YORK (Reuters) - The Federal Reserve Bank of New York held emergency talks with officials of major Wall Street firms on Friday night as concerns grew that Lehman Brothers Holdings Inc may fail to find a willing buyer to save the ailing institution.Source: Reuters: Business News | 13 Sep 2008 | 3:20 am Fed meets Wall Street chiefs over Lehman crisisTop Wall Street executives met Treasury Secretary Hank Paulson and New York Fed president Tim Geithner to discuss the crisis at Lehman Brothers as the bank faced a weekend of desperate negotiations over a possible rescue bidSource: FT.com - US homepage | 13 Sep 2008 | 3:10 am Walgreen offers $2.8B to buy Longs Drug StoresWalgreen Co. made an offer late Friday to buy Longs Drug Stores Corp. for $2.8 billion, hoping to unseat a rival offer from CVS Caremark Corp. that Longs had already accepted. Deerfield,Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 2:49 am Emergency meeting held to discuss Lehman BrothersThe Federal Reserve Bank of New York held an emergency meeting Friday night with top Washington policymakers and major financial institutions to discuss the future of Lehman Brothers. ...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Sep 2008 | 2:15 am HSBC chief backs bank pay reformBankers' pay needs to be reformed so deals that turn bad are no longer handsomely rewarded, says the boss of HSBC.Source: BBC News | Business | World Edition | 13 Sep 2008 | 1:15 am Weekend Investor: Housing market beckons more to invest using self-directed IRAsSome investors are seeing huge opportunities in the growing inventory of distressed properties and foreclosures, so huge that they’re using retirement funds to buy real estate or even make mortgage loans.Source: MarketWatch.com - Top Stories | 13 Sep 2008 | 12:46 am Comic Book Publisher Bulks Up Making Its Own Superhero Movies"Iron Man" gave viewers much to marvel at this summer.Source: Investor's Business Daily: BUSINESS | 13 Sep 2008 | 12:15 am Keeping To The High GroundAeroVironment showed investors once again last week how some military contractors are in a growth mode.Source: Investor's Business Daily: BUSINESS | 13 Sep 2008 | 12:15 am In Brief - FridayGM (GM) and auto parts supplier Delphi reached a deal to transfer Delphi's $1.5 bil in pension obligations to former parent GM. GM also boosted...Source: Investor's Business Daily: BUSINESS | 13 Sep 2008 | 12:15 am Trends & Innovations - FridayRetailer clinics seen filling gapsSource: Investor's Business Daily: BUSINESS | 13 Sep 2008 | 12:15 am Business Briefs - FridayChipotle slices outlook on costs. The once high-flying burrito restaurant chain, which traded above 155 in Dec., plunged 20.3% to 56.70 after it...Source: Investor's Business Daily: BUSINESS | 13 Sep 2008 | 12:15 am Sky and Ofcom at war over pay-TV serviceBSkyB is in a war of words with Ofcom over the time it has taken the media regulator to approve its plans to launch three pay channels on Freeview.Source: Telegraph Business | 13 Sep 2008 | 12:01 am XL highlights extent of Icelandic investment in the UKThe collapse of XL Leisure Group highlights Iceland's widespread investment in corporate Britain.Source: Telegraph Business | 13 Sep 2008 | 12:01 am US sales figures reveal 'depressed' economyRetail sales in the US fell by a bigger-than-expected 0.3pc in August, according to the US Commerce Department, which also revealed that sales figures for July had been revised sharply lower, an initial 0.1pc fall now revised to 0.5pcSource: Telegraph Business | 13 Sep 2008 | 12:01 am Capital fears for AIG and Washington MutualAmerican International Group, the world's largest insurer, is under pressure to clarify its capital position, amid concern that its balance sheet is not strong enough, as other financials began to feel the pain meted out earlier in the week to Lehman Brothers.Source: Telegraph Business | 13 Sep 2008 | 12:01 am CurrenciesCurrenciesSource: Telegraph Business | 13 Sep 2008 | 12:01 am Washington Mutual warns off would-be buyersBeleaguered American savings bank Washington Mutual (WaMu) has told potential buyers it is not interested in being taken over in spite of questions about its capital adequacy that have led its shares to fall by 35pc in the past week.Source: Telegraph Business | 13 Sep 2008 | 12:01 am XL Leisure rivals ready to carve up businessTour operators made sympathetic noises as they worked towards the rescue of XL Leisure Group's customers, but privately many were celebrating.Source: Telegraph Business | 13 Sep 2008 | 12:01 am Sterling surges as Lehman fears hit dollarSterling was one of the biggest winners on foreign-exchange markets yesterday, as fear over the fate of troubled bank Lehman Brothers prompted a dramatic sell-off in the dollar.Source: Telegraph Business | 13 Sep 2008 | 12:01 am Latin American Markets: Mexican, Brazilian equities end higher; mixed for the weekMajor Latin American markets finish higher, but mixed for the week, with Mexican stocks up slightly despite a sharp decline in shares of Cemex SAB following weak forecast from the cement maker.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 11:59 pm Walgreen offers to buy Longs for $3 bln including debt(Reuters) - Walgreen Co said on Friday that it has proposed to acquire Longs Drug Stores Corp for $75 per share in cash transaction.Source: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 11:58 pm After Hours: AIG falls as operations reviewed; Lehman shares see-sawAmerican International Group Inc. shares come under pressure in after-hours trade as the insurance giant said it was undertaking a review of its operations, while Lehman Brothers Holdings Inc. are volatile on speculation that the investment bank may strike a deal to sell itself by this weekend.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 11:55 pm Cisco to outline long-term growth strategy next weekNEW YORK (Reuters) - Top U.S. network equipment maker Cisco Systems Inc is set to outline its long-term growth strategy in an analyst meeting next Tuesday, with investors focused onSource: Infocious RSS raw feed - channel BNewsBusiness | 12 Sep 2008 | 11:54 pm Cisco to outline long-term growth strategy next weekNEW YORK (Reuters) - Top U.S. network equipment maker Cisco Systems Inc is set to outline its long-term growth strategy in an analyst meeting next Tuesday, with investors focused on when and how it will shake off the slowdown in U.S. technology spending.Source: Reuters: Business News | 12 Sep 2008 | 11:54 pm Lehman shares slide on Paulson bailout reluctanceNEW YORK/WASHINGTON -- Concerns grew that Lehman Brothers Holdings Inc may fail to find a willing buyer due to U.S. government reluctance to provide financial backing for the deal, sending its shares to a 14-year low.Source: L.A. Times - Business | 12 Sep 2008 | 11:54 pm Lehman Brothers shares fall again on sale speculationLehman Brothers edged closer to being acquired, possibly in a deal brokered by regulators that could come this weekend.Source: MarketWatch.com - Top Stories | 12 Sep 2008 | 11:52 pm WaMu outlook weak but soothes some investorsNEW YORK (Reuters) - Washington Mutual's plans for another big write-down, along with its declaration that it has enough capital to survive, soothed some investors and analysts who feared the housing crisis might cripple the lender.Source: Reuters: Business News | 12 Sep 2008 | 11:15 pm French Connection chief blasts energy groupsOne of Britain's best-known fashion entrepreneurs accused the energy industry of profiteering on Friday as he described the economic climate as one of the worst he had known in his 36-year career.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Deutsche Bank makes £2.2bn U-turn to buy stake in PostbankDeutsche Bank bought almost 30 per cent of Deutsche Postbank yesterday for E2.79 billion (£2.21 billion) and left the door open to a bid for the rest of Germany's biggest retail banking network.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm GfK chairman Hajo Riesenbeck resigns after differing views on growthHajo Riesenbeck, chairman of the German market research company GfK, has resigned after clashing with his chief executive over the group’s failed efforts to join forces with its London-listed rival Taylor Nelson Sofres.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Lufthansa sees bmi as weapon in BA battleLufthansa is looking at forming an alliance involving bmi and Virgin Atlantic to take on the proposed powerhouse combination of British Airways and American Airlines.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm GSK revamps research to boost cancer drugs outputGlaxoSmithKline (GSK) is to combine its cancer research and development units into a single organisation.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Airlift to repatriate up to 85,000 XL travellers is set to cost £20mThe airlift to repatriate as many as 85,000 XL travellers stranded around the world, from Turkey to Barbados, will be the largest such effort for 20 years and could take at least two weeks, it emerged last night.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Insurers braced for $25bn losses from Ike gains strength ahead of landfall in Texas$Hurricane Ike last night looked set to become one of the most expensive natural disasters the insurance industry has faced, with fears that claims could reach $25 billion ($£13.9 billion).Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm A title is just the measure of a job's worthAll women marry beneath them. Eighty per cent of success is showing up. Ninety per cent of everything is crud. The quality of food in restaurants is in inverse proportion to the number of signed celebrity photographs on the wall...Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Flaws appear in the Middle Kingdom’s economic miracleIf you picked up a cigarette lighter anywhere in the world, there is an 80 per cent chance that it was made in Wenzhou. And if your job was at a cigarette lighter factory in Wenzhou, there is an 80 per cent chance that you are now unemployed. Anywhere else, such a decline in a local industry would be considered catastrophic, but this sprawling industrial city has always taken a brutally capitalist view of life.Source: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Need to know: BSkyB criticises Ofcom ... M&S condemned ... Eaga benefitsEconomicsSource: Latest Business News from Times Online | 12 Sep 2008 | 11:00 pm Thumbs up for iPhone 2.1 fixesSource: Business and financial news - CNNMoney.com | 12 Sep 2008 | 10:44 pm Reports conflict on JPMorgan talks with WaMu (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 10:33 pm Reports conflict on JPMorgan talks with WaMuWASHINGTON (Reuters) - Shares of Washington Mutual Inc whipsawed on Friday amid conflicting reports that JPMorgan Chase & Co was in talks to acquire the battered savings and loan institution.Source: Reuters: Business News | 12 Sep 2008 | 10:32 pm AIG gets decked by default fearsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 10:25 pm Stocks struggle on bank woesStocks were volatile Friday as investors faced uncertainty about whether Lehman Brothers and Washington Mutual are likely to find buyers and whether AIG will shed its sour mortgage-related assets.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 10:07 pm Lehman scrambles to find a buyerExecutives at Lehman Brothers are racing to meet a Sunday deadline to find a buyer for the troubled bank, the BBC learns.Source: BBC News | Business | World Edition | 12 Sep 2008 | 9:51 pm Merrill now in shorts' sights as Lehman crumblesNEW YORK (Reuters) - The crisis of confidence in Lehman Brothers has led to fallout throughout the financial sector -- especially for larger rival Merrill Lynch & Co Inc .Source: Reuters: Business News | 12 Sep 2008 | 9:51 pm Wagoner tells Congress: "not seeking bailouts" (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 9:49 pm Merrill now in shorts' sights as Lehman crumbles (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 9:44 pm Coupons: Quit snipping, start clickingTough times make those coupons in the Sunday paper even more tempting. But even that familiar search for savings is transforming in the Internet age. Janet Babin reports.Source: Marketplace Money | 12 Sep 2008 | 9:16 pm Incidental costs at college add upAfter tuition and room and board, there's still the question of day-to-day expenses for your college student. Estimates are all over the map, so host Tess Vigeland takes a closer look at the cost of being in college.Source: Marketplace Money | 12 Sep 2008 | 9:16 pm Saving for your education... againThinking of changing careers? More employers are offering lifelong learning accounts. Think of it as a 401(k) plan for your future education. Katie Macpherson reports.Source: Marketplace Money | 12 Sep 2008 | 9:16 pm Day in the Work Life: Stress counselorOn this week's A Day in the Work Life, we meet Jim Yancey, a counselor helping residents of the Gulf Coast cope with the stress of hurricane season.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm Getting PersonalIn this edition of Getting Personal, Chris and Tess talk about filling a gap in health insurance, retirement savings options for non-citizens, a safe place for short-term investments and what to do with old savings.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm Bracing your finances for a stormWe often hear about the damage big storms cause, but they can also wreak havoc on the bank accounts of families stuck in their path. David Martin Davies reports.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm The silver lining? Lower mortgage ratesAs the government stepped in to save Fannie and Freddie, mortgage rates dropped under 6 percent. Host Tess Vigeland asks bankrate.com's Greg McBride if the more favorable rates will hold.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm Straight Story: Guarding your nest eggIn a volatile market, is Wall Street really the smartest place to keep your money? Economics editor Chris Farrell sets the story straight on the safest place to save for retirement.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm No such thing as a sure thingFrom Bear Stearns to Fannie and Freddie, we've seen a host of investments that were "too big to fail" topple over. Host Tess Vigeland asks economist Diane Swonk if there are any truly fail-safe investments.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm Gov't takeover may ease housing painsWith the bailout of Fannie Mae and Freddie Mac, homebuyers and homeowners may have an better luck making a connection. Mitchell Hartman reports from Portland, Oregon.Source: Marketplace Money | 12 Sep 2008 | 9:15 pm Lehman, AIG Drag Down Financial ETFs (Daily ETF Wrap-Up)Lehman Brothers, AIG weigh heavily on financial-services ETFs this week.Source: SmartMoney.com | 12 Sep 2008 | 9:09 pm VIX Index of U.S. Stock Option Prices Advances 5.2% to 25.66Source: Bloomberg - All Podcasts | 12 Sep 2008 | 9:09 pm AG Edwards's McRedmond Discusses Commodities ETFsSource: Bloomberg - All Podcasts | 12 Sep 2008 | 9:06 pm How to Write Off That Boondoggle (The Tax Guy)Combining vacation with business? You can probably still deduct a lot of your expenses. Here's how.Source: SmartMoney.com | 12 Sep 2008 | 9:04 pm Lehman workers sit tight-and drink upIn the giant glass box that holds Lehman Brothers headquarters, plenty of employees were still toiling away Friday afternoon as they waited to learn the firm's fate. Others, though, were heading across 50th Street for a not-so-happy hour.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 9:03 pm Hotels Go to Extremes to Cater to Business Travelers (Business Travel)To attract and retain business travelers, hotels offer some over-the-top amenities.Source: SmartMoney.com | 12 Sep 2008 | 9:00 pm Retail sales off but optimism rises (Reuters)
Source: Yahoo! News: Business | 12 Sep 2008 | 8:59 pm Merrill and AIG shares batteredInvestors demonstrated growing concerns that a rescue of Lehman Brothers would not resolve the problems of the financial sector, sending share prices sharply lower for companies including AIG and Merrill LynchSource: FT.com - US homepage | 12 Sep 2008 | 8:59 pm A Guide to Recouping Costs for Lost Baggage (Deal of the Day)Missing baggage has reached epidemic levels. Here are ways to recoup your costs.Source: SmartMoney.com | 12 Sep 2008 | 8:55 pm 7 Nasty Airline Fees and How to Avoid Them (Deal of the Day)How to avoid getting hit with fees for everything from baggage to a bag of chips.Source: SmartMoney.com | 12 Sep 2008 | 8:51 pm Portales's Peabody Says Possible `5000 Plus' Lehman LayoffsSource: Bloomberg - All Podcasts | 12 Sep 2008 | 8:49 pm Nearly 25% of U.S. fuel production shutNearly a quarter of U.S. fuel production had been shut down due to the approach of Hurricane Ike, according to a government assessment released Friday.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 8:33 pm Stocks End Week FlatMixed economic data and persistent worry over financials held Wall Street in check.Source: SmartMoney.com | 12 Sep 2008 | 8:15 pm Counterfeiters sour fine wine tradeFine wine prices have shot up dramatically in recent years. But wine collectors aren't the only ones seeing dollar signs. So are wine counterfeiters. An estimated 5% of wines sold in secondary markets could be fakes. Krissy Clark reports.Source: Marketplace | 12 Sep 2008 | 8:01 pm Student loan fixes will generate heatPresidential candidates Barack Obama and John McCain say they'll reform the federal government's $150 billion student financial aid program. Commentator Kim Clark says that's great, but it's going to come with political costs.Source: Marketplace | 12 Sep 2008 | 8:01 pm Class is in session, but funds are tardyWith unemployment up, community colleges' enrollments are rising too. Many schools are short on funds and are having trouble handling the spike, especially in California where politicians are late in approving the state budget. Julie Small reports.Source: Marketplace | 12 Sep 2008 | 8:01 pm This week: Big losses and bailoutsIn a few days, Lehman Brothers will still be a going concern or it won't. It's a turn of events that didn't seem likely on Monday when the news was all about Fannie and Freddie. Amy Scott's been following developments this week. She talks with Kai Ryssdal.Source: Marketplace | 12 Sep 2008 | 8:01 pm China shows Costa Rica the moneyChina recently bought $300 million in bonds from Costa Rica in a "checkbook diplomacy" strategy to move the nation's allegiance from Taipai to Beijing, according to a newspaper report. Dan Grech has more.Source: Marketplace | 12 Sep 2008 | 8:01 pm Ike has Texas refineries in its sightsWeather forecasters say Hurricane Ike is going to wallop the south Texas coast and its oil refineries early Saturday morning. To find out what that's going to mean for oil and gas prices, Kai Ryssdal talked with economist Ray Perryman.Source: Marketplace | 12 Sep 2008 | 8:01 pm Car makers want financial help, tooFinancial institutions aren't the only companies poking around Washington looking for help. Car makers want low-interest loan guarantees of $25 billion to retool factories to build hybrids and other fuel-efficient cars. John Dimsdale reports.Source: Marketplace | 12 Sep 2008 | 8:01 pm What's Treasury planning for Lehman?Treasury Secretary Henry Paulson hasn't said anything in public yet about rescuing Lehman Brothers from its credit crisis calamity. We asked Jeremy Hobson to find out why not.Source: Marketplace | 12 Sep 2008 | 8:01 pm The 52-Week Low Club 9/12/2008 (AIG)(MER)(LEH)(PDGI)
American International Group (AIG) Market worries that balance sheet is tearing to pieces. Down to $11.49 from 52-week high of $70.13. Lehman Brothers (LEH) Going out of business sale. Drops to $3.17 from 52-week high of $67.73. Merrill Lynch (MER) Dragged into the whirlpool. Pushed down to $16.60 from 52-week high of $78.66. PharmaNet Development (PDGI) Says it will miss guidance and loses half its value. Plunges to $9 from 52-week high of $43.05. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 7:56 pm Boeing strike another hit to economyA week ago, there was one sector of the battered U.S. economy that was performing particularly well - aerospace manufacturing.Source: Business and financial news - CNNMoney.com | 12 Sep 2008 | 7:52 pm Alaska Airlines to cut 1,000 jobsAlaska Airlines announces 1,000 job losses and a 15% cut in flight departures, blaming oil prices and a weak economy.Source: BBC News | Business | World Edition | 12 Sep 2008 | 7:45 pm Worst Housing Markets Based on Closing Costs (Ticked Off)Mortgage rates may be falling, but closing costs are moving in the opposite direction.Source: SmartMoney.com | 12 Sep 2008 | 7:43 pm `Huge Mistake' for Obama to Run Against Palin, Says MoroneySource: Bloomberg - All Podcasts | 12 Sep 2008 | 7:40 pm Giza's Ehrlich Sees Opportunities in Israeli Tech SectorSource: Bloomberg - All Podcasts | 12 Sep 2008 | 7:37 pm Lehman Bailout? Just Say NoPotential buyers of Lehman Brothers are apparently balking at putting the firm's black hole of a balance sheet onto their own without some back-stopping from the Federal Reserve.This is the modern day version of droit du seigneur. Instead of being entitled to take the virginity of the young women of his estate, today's banking lord thinks he is allowed to take the Fed's largesse whenever he deigns to help out the markets. The Fed indicated today that no new money would be forthcoming, according to various reports. The Fed, as the Wall Street Journal says, "has grown increasingly uncomfortable with the growing perception that it will craft bailouts for the U.S. economy." Maybe it should have thought of this before.
Back in May, after the Bear Stearns failure in March, for which the Federal Reserve played matchmaker and back-stopper to $29 billion in assets, I asked a New York Fed official about the precedent of moral hazard. The End of Lehman Rumor Sourcing of the Day Captain Crunch Source: Portfolio.com: Top 5 | 12 Sep 2008 | 7:30 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 | 7:29 pm Fed Rate Preview, Auto Industry Loans, Tampa Bay RaysSource: Bloomberg - All Podcasts | 12 Sep 2008 | 7:26 pm 15 Funds on a 7-Year Winning Streak (Fund Screen)These mutual funds have consistently beaten the market for eight straight years.Source: SmartMoney.com | 12 Sep 2008 | 7:25 pm Fannie, Freddie Bailout Should Be Good for the 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 | 7:24 pm Schickel Discusses His Documentary Film About Warner Bros.Source: Bloomberg - All Podcasts | 12 Sep 2008 | 7:21 pm WaMu Sees $4.5 Billion Loan-Loss Provision in QuarterSource: Bloomberg - All Podcasts | 12 Sep 2008 | 7:19 pm Court clears Zuma to run for presidentJacob Zuma, the leader of South Africa's ruling party, scored an emphatic victory in his pursuit of the presidency when a court dismissed corruption charges against himSource: FT.com - US homepage | 12 Sep 2008 | 7:02 pm Airport Amenities That Make Long Waits Bearable (Deal of the Day)Stuck at the airport? These amenities will make the wait much more bearable.Source: SmartMoney.com | 12 Sep 2008 | 6:34 pm Blog: Lehman, AIG, Merrill keep sliding; WaMu gets a liftSource: L.A. Times - Business | 12 Sep 2008 | 6:25 pm GE (GE) Down 6%: Nothing Is Sacred
GE's stock is off 6% today to $26.47, not that far above their 52-week low. Because GE's most significant businesses are part of its infrastructure operation, investors would have to make the case that the core of the firm's growth is breaking. The conglomerate has said that the large developing countries in Asia and the region in and around India will keep GE's most critical businesses expanding at double-digit rates. According to Reuters, GE infrastructure unit, GE Infrastructure, said it will maintain its business growth forecast of 10-15 percent for 2008, despite rising costs. If GE makes those numbers, the financial unit's performance would have to be a disaster to justify the current sell-off in the stock. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 6:06 pm Frantzich Discusses Book About C-Span CEO Brian LambSource: Bloomberg - All Podcasts | 12 Sep 2008 | 5:55 pm Dicks Sees Pound's Decline Benefiting U.K. EconomySource: Bloomberg - All Podcasts | 12 Sep 2008 | 5:48 pm Medvedev and Putin at odds on market fallDmitry Medvedev, Russia's president, admitted the Georgian crisis had contributed to the turmoil in the country's financial markets but said it was a price worth payingSource: FT.com - US homepage | 12 Sep 2008 | 5:31 pm US candidates trade sharper attacksObama and McCain camps exchange scathing charges and counter-charges amid polls showing the Republican sustaining his 'bounce' from his party's conventionSource: FT.com - US homepage | 12 Sep 2008 | 5:21 pm Air NZ test flight to US uses 4 per cent less fuelAn Air New Zealand Boeing 777 on a fuel saving trial to San Fransisco beat expectations today. The flight with many air traffic constraints removed and additional pre-flight fuel saving measures in place was expected to save...Source: New Zealand Herald - Business | 12 Sep 2008 | 5:00 pm Lord's PayerLord & Taylor's new owner, NRDC Equity Partners, has injected $30 million into the struggling department-store chain in the last few months and plans another investment north of $50 million in coming months, Portfolio.com has learned. NRDC’s Richard Baker, who serves as chairman of Lord & Taylor, denied that the company is posting operating losses, though he did acknowledge sales have “absolutely been weaker than expected.” Baker noted that NRDC recently locked in commitments on $500 million in cash that it plans to invest in various businesses under its new retail/apparel umbrella company, Hudson’s Bay Trading Co., which encompasses Lord & Taylor, Hudson’s Bay, Fortunoff, and Creative Design Studios. “We move money up or down into companies as needed,” he said. “We are continuing to move Lord & Taylor up market and it continues to go well.” Purchase, N.Y.-based NRDC is run by shopping-center mogul Robert Baker of National Realty & Development Corp. and two partners from Apollo Real Estate Advisors. When NRDC clinched a $1.2 billion deal for Lord & Taylor in spring 2006, many observers viewed the buyers as more interested in acquiring valuable real estate than running a group of department stores. Lord & Taylor's landmark 600,000-square-foot Fifth Avenue flagship is a crown jewel of Manhattan retail, and reportedly accounted for $350 million of the deal.
Related Links The Marriage From Hell Do Kmart and Sears Need Retail Therapy? Retail Datapoints of the Day Source: Portfolio.com: Top 5 | 12 Sep 2008 | 5:00 pm Wall St. Turns On AIG (AIG): Time's Up
After after three quarters of significant write-offs, AIG is down 25% today for having done little or nothing to improve the firm's direction since it was clear that the credit and housing crisis were bleeding it out. AIG elected to give Wall St. veteran Robert Willumstad, who had been the insurace company's chairman, the chief executive's job. He had been on the board long enough to have at least partial blame for AIG's trouble. Willumstad said that "nothing is off the table" in terms of restructuring the firm. On June 17, Willumstad stated “I've set a goal in the next 90 days to dig into the businesses - all of the businesses, not just the non-insurance businesses - to make sure our capital is being employed in the right areas." AIG stock is in a flat spin. Time's up. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 4:49 pm Alitalia rescue deadline extendedThe Italian government has given Alitalia unions one more day to agree a rescue plan with a group of investors.Source: BBC News | Business | World Edition | 12 Sep 2008 | 4:06 pm Making money in the land of OzThe road to the lucky country is one littered with the corpses of failed ventures. Telecom's investment in AAPT, The Warehouse Group's acquisition of Clint's Crazy Bargains and Silly Solly's stores, and Air New Zealand's Ansett are...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Liam Dann : NZ has nothing to fear and much to gainIn business the divide between winners and losers is not drawn across national lines. When it comes to making money there is no place for the rivalry and mock hatred that we love to invoke on occasions like tonight's Tri-Nations...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Colin James : Transtasman deals open door to worldTrivial haggling over trading in peas and beans, leather wallets and even seawater prodded politicians into CER, the closer economic relationship with Australia, 25 years ago. Now the haggling is over complex and often obscure...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Brian Gaynor : Savings needed to fuel growthNew Zealand's savings problem, which was covered in last week's column, is usually assessed from the perspective of the individual only. The debate rages back and forth about the level of savings required to have a comfortable...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm SkyCity finishes overhaul at topSkyCity has appointed three new members, completing an overhaul of management since the departure of former chief executive Evan Davies. New chief executive Nigel Morrison joins the board as managing director while long-standing...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Investors sniff bargain despite Warehouse resultBargain hunters came calling to The Warehouse yesterday in anticipation of a speedy resurrection in takeover activity after hints that the Extra format could be dropped. The share price climbed as much as 4.4 per cent - despite...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Commerce Commission investigates own deputyThe Commerce Commission is to investigate its own deputy chairman over disclosure issues relating to finance and investment companies just six weeks after he was appointed to the post. Donal Curtin has been on the commission's...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Mary Holm : Ethical investing a real optionI was most interested to see the issue of KiwiSaver and "ethical investment" raised recently. I own no stocks but would like to know if it is possible to invest "ethically" (for example, no armaments companies or greedy pharmaceuticals)...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm Closer economic ties a trade-offThe increasing integration of the New Zealand and Australian economies over the past 30 years has been the reversal of the divergence that occurred a century ago. But with the global game changing, New Zealand stands to benefit...Source: New Zealand Herald - Business | 12 Sep 2008 | 4:00 pm SAS debates its future structureScandinavian airline SAS has confirmed it is in talks regarding the "future structure" of the group.Source: BBC News | Business | World Edition | 12 Sep 2008 | 3:27 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 | 3:25 pm Thousands & Thousands of Financial Jobs At Risk (AIG, WM, LEH, MER, C)There are hundreds of thousands of jobs at stake if the current trends continue in the financial services sector. When you tally up the employment just at five troubled firms noted below, there are roughly 600,000 jobs. Add in all the smaller institutions not doing well and you have a major risk. Will all at-risk financial institutions fail? No, we seriously doubt that. But some may. Does that also mean all of these jobs are suddenly on the street? Doubtfully. We do not want to implant the thought of bread lines forming in front of the NYSE and it is obvious that many of these jobs would simply be added over at stronger competitors. These numbers are also about one quarter, old so the ranks may already be thinner than the numbers below:
There is another sad thing here, even if these jobs do get transferred over to stronger competitors. Worker pay can be destroyed. When there is a flood of people suddenly available for the same position it can create a theoretical Dutch Auction where the hiring firms can lower and lower the entry salary until people quit saying they'll take it. That hasn't happened as much as many have feared, thankfully. Financial firm jobs also tend to pay more than elsewhere. Out-of-work junior stock brokers, their assistants, back office teams, tellers, accountants, and secretaries tend to not make the best ditch diggers and highway workers. The good news is that Lehman is in talks to be bought, or at least partially and we could see an announcement out of then any day. But either way, there are fewer chairs than there are bodies.
Jon C. Ogg Source: 24/7 Wall St. | 12 Sep 2008 | 2:36 pm US retail sales fall unexpectedlyUS retail sales stores fell last month for the second month in a row as the boost from tax rebates slipped away and a sharp decline in energy prices failed to encourage consumers to spend on other goods, new data showedSource: FT.com - US homepage | 12 Sep 2008 | 2:15 pm US August retail sales in surprise slump (AFP)
Source: Yahoo! News: Business | 12 Sep 2008 | 1:50 pm 24/7 Wall St. Most Overpaid CEO Of The Day: PharmaNet Development (PGDI) CEO Jeffrey P. McMullen
Investors were unusually upset and sent the stock down 52% to $10.07, a new 52-week low. The period high was $43.05. The company's CEO Jeffrey P. McMullen does not have to worry much. McMullen had a base salary of $695,000 last year. He even got a raise to $740,000 for 2008. In 2007, Mullen picked up a bonus check for $886,000. According to the PDGI proxy, Mr. McMullen’s employment agreement awards him perquisites up to the amount of $32,500. If there is change of control at the company he gets 36 months of his base pay. That's a very good deal for a company which has wiped out $600 million of its market cap. Douglas A. McIntyre Source: 24/7 Wall St. | 12 Sep 2008 | 1:45 pm US retail sales decline in AugustUS retail sales fall unexpectedly in August, the second monthly decline in a row, increasing concerns about the US economy.Source: BBC News | Business | World Edition | 12 Sep 2008 | 1:45 pm Poland's last communist leader stands trialWojciech Jaruzelski, the communist general who declared martial law in 1981, ending Poland's brief flirtation with freedom under the Solidarity labour union, has gone on trial with other retired officers and former party officials on charges of being part of a "criminal conspiracy"Source: FT.com - US homepage | 12 Sep 2008 | 1:36 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 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 IT Outsourcing Income Altered By Dollar (Strength)? (INFY, SAY, WIT)There may be an interesting trend in the IT 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 the U.S. dollar rebound after a six-year pounding. Infosys Technologies Ltd. (NASDAQ: INFY) is one of the largest Indian IT outsource operations, said earlier this week 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 revenue reported under U.S. accounting standards. Infosys shares were down about $2.00 to $37.18 yesterday on the same concerns. Investors whobuy ADR's and ADS's in foreign companies when the dollar is strengthening should also be concerned. Then this morning Satyam Computer Services (NYSE: SAY) and Wipro Ltd. (NYSE: WIT) noted how the currency conversions would also have an impact in their quarter. While it doesn't look like there are any guidance changes, this trend could strengthen if the dollar rebound continues. This was part of the reason that the SENSEX in India fell by more than 2% today. 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 unknown. Some economists have forecasted 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 erosion.
Jon C. Ogg Source: 24/7 Wall St. | 12 Sep 2008 | 12:48 pm
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Oil refiners have had a very tough year. Since January, Marathon's (NYSE:MRO) stock is off nearly 30%, Valero (NYSE:VLO) has plunged 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.