Wall Street higher ahead of bail-out vote

Banks led Wall Street stocks higher after Wells Fargo agreed to acquire Wachovia, thus demonstrating deals could still be struck in the crisis-hit sector without the need for government assistance
Source: FT.com - US homepage | 3 Oct 2008 | 2:48 pm

Service sector barely grows in September (Reuters)

Reuters - The sluggish service sector was barely growing in September as the country's worst financial crisis since the Great Depression reached new heights, according to a report released on Friday.

Source: Yahoo! News: Business | 3 Oct 2008 | 2:40 pm

Service sector barely grows in September

NEW YORK (Reuters) - The sluggish service sector was barely growing in September as the country's worst financial crisis since the Great Depression reached new heights, according to a report released on Friday.

Source: Reuters: Business News | 3 Oct 2008 | 2:40 pm

How to Save $150,000 (And Still Have a Life) (SmartMoney Magazine)

Here's a game plan for saving like the dickens without living like Scrouge.

Source: SmartMoney.com | 3 Oct 2008 | 2:34 pm

California requests emergency $7B loan

California may need a $7 billion emergency loan from the Federal government for day-to-day operations and to pay teachers' salaries, nursing homes, law enforcement and every other State-funded service this month, Gov. Arnold Schwarzenegger warned in a letter sent Thursday to the U.S. Treasury secretary.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 2:30 pm

Wells Fargo acquiring Wachovia for $15.1 billion

NEW YORK -- In an abrupt change, Wachovia said Friday it agreed to be acquired by San Francisco-based Wells Fargo & Co. in a $15.1 billion all-stock deal that trumps Citigroup's plan to acquire Wachovia's banking operations and avoids government assistance.

Source: L.A. Times - Business | 3 Oct 2008 | 2:30 pm

Toyota pushes 0% financing

After posting its worst sales decline since the 1960s, Toyota Motor Co. is offering an uncharacteristically splashy incentive offer. The automaker is offering 0% financing on eleven models nationwide.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 2:27 pm

AIG to sell as many assets as needed to pay bailout

NEW YORK (Reuters) - American International Group Inc , the insurer crippled by losses on bad mortgage bets, said on Friday it plans to sell as many assets as needed to repay up to $85 billion of borrowings from the U.S. government.

Source: Reuters: Business News | 3 Oct 2008 | 2:27 pm

Wells to buy Wachovia for over $16 billion

NEW YORK (Reuters) - Wells Fargo & Co agreed to buy Wachovia Corp for more than $16 billion, besting a U.S. government-backed Citigroup Inc bid for some of its assets, in a deal that would catapult Wells Fargo to the top ranks of national consumer banks.

Source: Reuters: Business News | 3 Oct 2008 | 2:23 pm

MTV rediscovers its musical mojo

Judy McGrath, the CEO of MTV Networks, remembers the first time she saw one of the plastic fake guitars that are used in the video game "Guitar Hero." "I'm like, are you kidding me?" she recently recalled.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 2:20 pm

Citigroup (C): Vikram Pandit Continues To Play The Fool

Vikram Pandit has been the CEO of Citigroup (C) for ten months. The only thing he has done right is collect $216 million in compensation. Much of that was for the sale of his company Old Lane Partners to the big bank. In June, Old Lane was closed.

Today, Pandit lost out on his purchase of Wachovia (WB). While he was busy elsewhere Wells Fargo (WFC) stepped in and robbed him.

As Reuters wrote, "Pandit, who hailed from the investment banking side of the business, firmly put his stamp on Citi's retail side by taking on stricken Wachovia Corp's banking assets and sharing the risk with the Federal Deposit Insurance Corporation."

In a matter of days, and after Citi's stock popped up, the deal was gone. The FDIC may try to undo the Well Fargo deal, but that is far from certain.

Today, Citi is trading down over 12% to $19.62.

Pandit has made a habit of disappointing investors. According to the FT, in April Pandit, "vowed to slash the beleaguered financial group's cost base by up to 20 per cent."

So far, the cost cutting program has not worked out.

There has been some real expectation that Pandit would reshape the bank. He might have sold off the retail brokerage division, Smith Barney, to raise capital. Or, he could have put the bank's international banking branches up for auction. That did not happen either.

Since the beginning of the year, Citi is down over 20%. JP Morgan (JPM) is up over 10% and Bank of America (BAC) is off slightly.

Is it any wonder? Most of what Pandit has done has hurt the bank and now his only major decision has turned out badly.

Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Oct 2008 | 2:18 pm

Wells to buy Wachovia for over $16 billion (Reuters)

Reuters - Wells Fargo & Co agreed to buy Wachovia Corp for more than $16 billion, besting a U.S. government-backed Citigroup Inc bid for some of its assets, in a deal that would catapult Wells Fargo to the top ranks of national consumer banks.

Source: Yahoo! News: Business | 3 Oct 2008 | 2:17 pm

Stocks stay higher after services data

NEW YORK (Reuters) - Stocks stayed near session highs on Friday after a report showed that growth in the vast services sector held up in September, tempering worries about the economy and the profit outlook.

Source: Reuters: Business News | 3 Oct 2008 | 2:17 pm

Stocks stay higher after services data (Reuters)

Reuters - Stocks stayed near session highs on Friday after a report showed that growth in the vast services sector held up in September, tempering worries about the economy and the profit outlook.

Source: Yahoo! News: Business | 3 Oct 2008 | 2:17 pm

ISM Service Economy Holding Positive, Barely

Source: 24/7 Wall St. | 3 Oct 2008 | 2:16 pm

Tata abandons cheapest car plant

Tata Motors abandons plans to build the world's cheapest car in the Indian state of West Bengal following a row over land.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 2:16 pm

Britons put money back into their houses for first time since 1990s

The British have ceased to borrow against the value of their homes for the first time since the 1990s, preferring instead to pay back some of their mortgage debts.
Source: Latest Business News from Times Online | 3 Oct 2008 | 2:15 pm

Stocks advance at open ahead of House vote

NEW YORK -- Stocks advanced while credit markets remained strained today ahead of an expected House vote on the government's $700 billion financial rescue plan and after Wells Fargo Co. agreed to buy Wachovia Corp. in a $15.1 billion deal.

Source: L.A. Times - Business | 3 Oct 2008 | 2:15 pm

Apple says report of Jobs heart attack "not true" (Reuters)

Reuters - An Internet report claiming that Apple Inc chief executive Steve Jobs has had a heart attack is not true, the company said on Friday.

Source: Yahoo! News: Business | 3 Oct 2008 | 2:14 pm

Apple says report of Jobs heart attack "not true"

NEW YORK (Reuters) - An Internet report claiming that Apple Inc chief executive Steve Jobs has had a heart attack is not true, the company said on Friday.

Source: Reuters: Business News | 3 Oct 2008 | 2:14 pm

Something Good Is Brewing at Starbucks (Today From Barron's)

Starbucks aims to get its buzz back -- and its stock up -- with new products.

Source: SmartMoney.com | 3 Oct 2008 | 2:05 pm

Bail-out hopes send stocks higher

US and European shares edge up on hopes that a new version of the US bail-out plan will gain support from lawmakers.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 2:03 pm

Jobs data weak; pressure mounts on Congress

NEW YORK (Reuters) - The United States reported its biggest monthly job loss in 5 1/2 years on Friday, piling pressure on the House of Representatives to pass a $700 billion bill to bail out banks and arrest a spreading crisis.

Source: Reuters: Business News | 3 Oct 2008 | 2:02 pm

Oil falls below $94 on jobs data

LONDON (Reuters) - Oil fell below $94 a barrel on Friday after a report showed U.S. employers slashed jobs in September, the latest indication of the weakening economy of the world's largest oil consumer.

Source: Reuters: Business News | 3 Oct 2008 | 1:59 pm

Wall Street higher ahead of bail-out vote

Wall Street opened sharply higher on Friday after Wells Fargo agreed to acquire Wachovia, which demonstrated deals could still be struck in the crisis-hit banking sector without the need for government...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 1:56 pm

Wells Fargo to buy Wachovia for $15.1bn

Wells Fargo on Friday pushed Citigroup aside to take over Wachovia, in an all-stock deal worth $15.1bn that keeps the bank intact and does not rely on government funding.The deal is a coup for Wells Fargo,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 1:56 pm

Wells Fargo to buy Wachovia for $15.1bn

Wells Fargo pushed Citigroup aside to take over Wachovia in a $15.1bn all-stock deal that keeps Wachovia intact and does not rely on support from the US banking regulator. The deal creates the largest retail bank in the US
Source: FT.com - US homepage | 3 Oct 2008 | 1:56 pm

Gordon Brothers Establishes Investment Management Group

BOSTON, Oct. 3 /PRNewswire/ -- Gordon Brothers Group, a global advisory, restructuring and investment firm specializing in the retail, consumer products, real estate and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:55 pm

US shares rally ahead of $700bn rescue vote$

US shares rallied today on rising hopes that the House of Representatives will vote through America’s amended $700 billion bailout aimed at stabilising its faltering financial system.$
Source: Latest Business News from Times Online | 3 Oct 2008 | 1:52 pm

Goldman may buy deposits, banks in distress: Credit Suisse

(Reuters) - Goldman Sachs Group Inc may bid for deposits, possibly buy banks in distress situations, as part of its transition to a traditional bank holding company, Credit Suisse said in a note to clients.

Source: Reuters: Business News | 3 Oct 2008 | 1:52 pm

Prudential Gary Greene, Realtors Announces That Pennington-Chen Joins Bay Area Team

HOUSTON, Oct. 3 /PRNewswire/ -- Prudential Gary Greene, Realtors partners, Mark Woodroof and Marilyn Eiland, have announced that Pennington-Chen Real Estate is joining...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:49 pm

Lehman's `100% Principal Protection' Means Pennies for Notes

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:48 pm

Stocks Up Before House Vote

The major indexes got a bounce after Wells Fargo agreed to acquire Wachovia for $15.4 billion.

Source: SmartMoney.com | 3 Oct 2008 | 1:47 pm

Audi and Infiniti Roll Out New Luxury Coupes (Autos)

Audi and Infiniti roll out sporty models, hoping baby boomers bite even in a tough economy.

Source: SmartMoney.com | 3 Oct 2008 | 1:46 pm

Do Wall Street's Losses Make NYC Affordable?: Commentary

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:46 pm

Vivendi's Subpoena Quashed in University Piracy Case

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:44 pm

London steady ahead of bail-out vote

London were steady on Friday, ahead of the vote on the US government's financial rescue package scheduled after the end of the European trading day.There were hopes that revisions to the bill would be...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 1:41 pm

Silencing Critics Using the Barack Obama Method

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:41 pm

Jobs: Worst in 5 years

Employers made deeper cuts in their payrolls in September, according to the Labor Department's monthly jobs report, as the economy experienced the biggest drop in jobs in more than five years.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 1:39 pm

Wells Fargo to take over Wachovia

The US bank Wells Fargo is to buy its troubled rival Wachovia in $15.1bn deal, scuppering a deal with Citigroup.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 1:34 pm

Zelizer Says Vice President Debate Won't Change Polls

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:32 pm

Westpac's Shugg Sees More Financial Institutions Collapsing

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:31 pm

Seven Summits Research Releases Alerts on JPM, X, HD, FITB, and ICE

CHICAGO, Oct. 3 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:31 pm

Prying funds from a client trying to stiff you

Start creating a paper train, and be ready to hire a collection attorney.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 1:29 pm

GuestInvest founder moves to buy back company

The chief executive of GuestInvest, the buy-to-let hotel operator, is trying to put together the funding to buy back the company following its collapse into administration, Times Online has learnt.
Source: Latest Business News from Times Online | 3 Oct 2008 | 1:26 pm

Skidelsky Says Governments Must Lead in Market Crisis

Source: Bloomberg - All Podcasts | 3 Oct 2008 | 1:26 pm

Did General Growth Just Save Itself? (GGP)

Source: 24/7 Wall St. | 3 Oct 2008 | 1:26 pm

Steelcase Declares Quarterly Dividend

GRAND RAPIDS, Mich., Oct. 3 /PRNewswire-FirstCall/ -- The Board of Directors of Steelcase Inc. (NYSE: SCS) today declared a quarterly cash dividend of $0.15 per share to...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:23 pm

Beacon Equity Issues Technical Trade Alerts on Major Airline Stocks: LCC, DAL, NWA, AMR, UAUA, CAL

DALLAS, Oct. 3 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:20 pm

FBR Group, Inc. Seeks Return of Agency Mortgage Security

ARLINGTON, Va., Oct. 3 /PRNewswire-FirstCall/ -- Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) (FBR Group) issued the following statement this morning:
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:19 pm

Dexia's chief executive will not seek pay-off

Axel Miller, the outgoing chief executive of Dexia, the Franco-Belgian bank rescued from collapse this week, today pledged he will not ask for a golden parachute when he leaves.
Source: Latest Business News from Times Online | 3 Oct 2008 | 1:15 pm

Arsenal Capital to Acquire Ferro Corporation's Fine Chemicals Business

Renamed Novolyte Technologies, Arsenal Plans To Build A Global Energy Technology Company Around This Platform NEW YORK, Oct. 3 /PRNewswire/ -- Arsenal Capital...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:15 pm

September job losses steepest in 5-1/2 years

WASHINGTON (Reuters) - U.S. employers cut payrolls at the steepest rate in 5-1/2 years in September, slashing an unexpectedly large 159,000 jobs as employment contracted for a ninth straight month, suggesting the economy may be in recession.

Source: Reuters: Business News | 3 Oct 2008 | 1:13 pm

BoE in dramatic bank lending increase

The Bank of England announced a dramatic increase in its three-month lending to British banks on Friday, saying it was willing to offer cash against an even wider range of collateral in a bid to ease the...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 1:08 pm

US job cuts at a five year high

US employers cut 159,000 jobs in September, the most in more than five years, Labor Department's figures show.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 1:07 pm

September job losses steepest in 5-1/2 years (Reuters)

Reuters - U.S. employers cut payrolls at the steepest rate in 5-1/2 years in September, slashing an unexpectedly large 159,000 jobs as employment contracted for a ninth straight month, suggesting the economy may be in recession.

Source: Yahoo! News: Business | 3 Oct 2008 | 1:05 pm

Bank of England acts to ease strain on lenders

The Bank of England acted again today to further ease the intense funding strains facing UK banks.
Source: Latest Business News from Times Online | 3 Oct 2008 | 1:04 pm

Stocks point higher ahead of House vote

Stocks headed for a higher open while credit markets remained strained Friday ahead of an expected House vote on the government's $700 billion financial rescue plan and after Wells Fargo...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:00 pm

Beacon Equity Issues Technical Trade Alerts on Market Movers: CPWM, ATML, SPAR, TOMO, BKHM, LBAS

DALLAS, Oct. 3 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:00 pm

China Advanced Construction Materials Group Reports 31% Increase in Revenue and 44% Increase in Gross Profit for Fiscal 2008

Net income increases to $4.9 million in fiscal 2008 compared to $3.9 million in fiscal 2007 Affirms adjusted net income guidance of $9 million for fiscal 2009
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Oct 2008 | 1:00 pm

Looking Down

The financial crisis has put the world "on the edge of the abyss," the prime minister of France says.

If that is the case, then the U.S. is in the very front of the pack, looking down from the lip.

Today's employment report is just the latest sign of the impact that the credit crunch is having on all kinds of American businesses.

Employers cut 159,000 jobs in September, the deepest loss since March 2003. So far this year, 760,000 jobs have been lost, the Labor Department says.

"The financial panic is a body blow to business confidence, and companies are now battening down the hatches," Mark Zandi, chief economist at Moody's Economy.com, told Bloomberg News before the release of today's report. "We're in store for very sizable job losses across many industries."

The unemployment rate was unchanged at 6.1 percent. While the decline in payrolls was higher than some forecasts, U.S. stock-index futures rose on relief that the numbers were not much, much worse.

The Labor Department said that hurricanes in the Gulf last month did not have a substantial impact on the data.

And the job losses were broad based, affecting nearly every sector of the economy.

The service sector lost 82,000 jobs in September, the fourth consecutive monthly decline. Manufacturing jobs declined by 51,000. Construction lost 35,000 jobs.

The jobs data are heightening expectations that the Federal Reserve will cut its benchmark interest rate to below 2 percent when its meets this month.

The report will also be cited by supporters of a House bill to enable the Treasury to buy as much as $700 billion of troubled mortgage assets.

The financial crisis has long spread from beyond Wall Street to every other industry. As a result, the employment reports for October and November will almost certainly be uglier than September's.

The outlook is bleak, and the humor is black. As Jon Ogg says on 24/7 Wall Street: "What kind of bread do they offer in those free breadlines?"


Related Links
Summer's Over. So's Your Job.
Not a Bad Job
The Slo-Mo Recession


Source: Portfolio.com: Top 5 | 3 Oct 2008 | 1:00 pm

Canada PM attacked over economy

Canadian opposition leaders accuse PM Stephen Harper of not having an economic plan, during a debate ahead a general election later this month.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 12:55 pm

US economy sheds 159,000 jobs

The US economy lost 159,000 jobs in September – the largest monthly drop since March 2003 – as the unemployment rate held firm at 6.1%. It was the ninth consecutive month of job losses.
Source: FT.com - US homepage | 3 Oct 2008 | 12:54 pm

Employers cut jobs by most in more than 5 years

Employers slashed payrolls by 159,000 in September, the most in more than five years, a worrisome sign that the economy is hurtling toward a deep recession.

Source: L.A. Times - Business | 3 Oct 2008 | 12:53 pm

Employers cut jobs by most in more than 5 years

Employers slashed payrolls by 159,000 in September, the most in more than five years, a worrisome sign that the economy is hurtling toward a deep recession.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 12:53 pm

Thankfully, Cohen Stepping Down As CEO of Finish Line (FINL, GCO)

Source: 24/7 Wall St. | 3 Oct 2008 | 12:52 pm

Wachovia deal lifts mood on Wall Street

Wall Street stocks were set for a modestly higher start on Friday after Wells Fargo agreed to acquire Wachovia, which demonstrated deals could still be struck in the crisis-hit banking sector without the...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 12:51 pm

Silicon Valley's hottest startup

Silicon Valley operates on potential. Employers may not like it, but talented engineers switch jobs like Pony Express horses so they can be at a company that has a shot at dominating the future. Google and Apple (after the return of Steve Jobs) were those kinds of companies. Today, places like Facebook have people lined up knocking on the door to get in.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 12:41 pm

Money markets strained; eyes on U.S. bill vote, c.banks

LONDON (Reuters) - Money markets remained largely frozen on Friday as banks nervously awaited the U.S. House of Representatives vote on a $700 billion financial rescue package, but central bank action succeeded in dragging overnight dollar funding costs to target.

Source: Reuters: Business News | 3 Oct 2008 | 12:40 pm

Unemployment Shows Jobs Disappearing Rapidly

Source: 24/7 Wall St. | 3 Oct 2008 | 12:35 pm

Wells Fargo to acquire Wachovia for $15.1 billion

In an abrupt change of course, Wachovia Corp. said today it agreed to be acquired by Wells Fargo & Co. in a $15.1 billion all-stock deal, wiping out Wachovia's previous plan to sell its banking operations...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 12:29 pm

UBS to slash another 2,000 jobs

Swiss bank UBS said Friday that it plans to cut an additional 2,000 investment banking jobs, bringing the total headcount reduction to 6,000 over the past year.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 12:05 pm

Family Dollar profit tops estimates (Reuters)

Reuters - Family Dollar Stores Inc posted a higher-than-expected quarterly profit on Friday, helped by shoppers who spent tax rebate checks at the discount retailer and by closely controlling costs.
Source: Yahoo! News: Business | 3 Oct 2008 | 12:01 pm

The Bank Heist

What does Wells Fargo want? Wachovia, as it turns out.

In a stunning turnabout, Wells Fargo has agreed to acquire Wachovia for $7 per share in stock, or about $15 billion.

The announcement comes just four days after Citigroup agreed to buy the retail-banking business of Wachovia for $1 per share in a deal orchestrated by government regulators. Wells Fargo is buying the entire company, including the A.G. Edwards brokerage operation.

With this acquisition, Wells Fargo confirms its membership in the elite club of U.S. commercial banks. Because of the credit crunch, the balance of power in the U.S. financial system is now largely in the hands of four banks: Citigroup, Bank of America, J.P. Morgan, and Wells Fargo. (For a pre-deal look at the banking behemoths, click here.)

These banks will have unprecedented sway over the economy, but because of their size and importance will be regulated and scrutinized like no other American companies ever have been. For now and years to come, these four are officially too big to fail.

For jittery investors, the deal will also inspire new confidence. Wells Fargo's move demonstrates that there will be private money available in the rescue of financial institutions as well as government help. The announcement comes hours before the House will vote on a $700 billion plan to buy troubled mortgage assets from institutions.

And the deal provides some degree of vindication to Robert Steel, the former Treasury executive who left just months ago to lead Wachovia. Steel, once a Goldman Sachs executive, has been criticized, as Andrew Ross Sorkin of the New York Times detailed on Tuesday, for talking optimistically about the bank's prospects just two weeks ago, when Wachovia shares were trading above $10.

The apparent sale to Citi for $1 per share crushed some longtime supporters of Steel.

"I believed in the guy," Jim Cramer said on his Mad Money show on Monday night, "Did he take advantage of me? Perhaps, yes."

A sale for $7 per share, without government intervention, looks much better for Steel than a $1 fire sale.

"This deal enables us to keep Wachovia intact and preserve the value of an integrated company without government support," Steel said in a statement today. The board of Wachovia approved the deal Thursday night.

The rapid turn of events will raise some questions. What, if anything, does Citigroup do in response? Did it not have a signed agreement with Wachovia?

And will the acquisition not increase the scrutiny of Wells Fargo's balance sheet? The bank is a huge mortgage lender that could see delinquencies and foreclosures climb as the economy sinks.

Before today's news, Peter Eavis of the Wall Street Journal pointed out that Wells Fargo has $73 billion of home-equity loans, "many of which were made in the same markets as Washington Mutual, whose assets were sold last week to J.P. Morgan."

"J.P. Morgan's assumptions signal that Wells still could sustain substantial losses," Eavis says.

And now it will add on Wachovia? Nearly half of Wachovia's mortgage lending has been in California and Florida, two states with some of the highest foreclosure rates in the nation. Ouch.

Still, the Wells Fargo move apparently has the golden seal of approval from Warren Buffet: Berkshire Hathaway is the bank's largest shareholder, with a 9 percent stake.

First Goldman Sachs and General Electric—and now Wachovia? Forget about Hank Paulson or Ben Bernanke. The most important figure in finance right now may be the guy from Omaha.

Related Links
What Does Wells Want?
Worldwide Bank Clearance Sale
Charlotte's Web


Source: Portfolio.com: Top 5 | 3 Oct 2008 | 12:00 pm

Top Pre-Market Analyst Upgrades (BNI, CMP, CSX, MET, MXB, NI, PLL, XEL)

These are some of the top upgrades from Wall Street analysts we are seeing this Friday morning with about two hours to the open.

• Burlington Northern (BNI) Raised to Overweight at JPMorgan.
• Compass Minerals (CMP) Raised to Overweight at JPMorgan.
• CSX Corp. (CSX) Raised to Overweight at JPMorgan.
• MetLife (MET) Raised to Outperform at KBW.
• MSCI (MXB) Raised to Outperform at KBW.
• NiSource (NI) Raised to Neutral at Merrill Lynch.
• Pall Corp. (PLL) Raised to Buy at Merrill Lynch.
• Xcel Energy (XEL) Raised to Buy at Merrill Lynch.

Jon C. Ogg
October 3, 2008

Source: 24/7 Wall St. | 3 Oct 2008 | 11:41 am

Top Pre-Market Analyst Downgrades (ADBE, AGU, CMI, INTU, MOS, NST, PENN, CRM, SCG, SGP, SYMC, TEX, XRTX)

These are the top analyst downgrade calls we are seeing this Friday morning with two hours to the open:

• Adobe Systems (ADBE) Cut to Sell at UBS.
• Agrium (AGU) Cut to Hold at Canaccord.
• Cummins Inc. (CMI) Cut to Market Perform at Wachovia.
• Intuit (INTU) Cut to Sell at UBS.
• Mosaic (MOS) Cut to Hold at Canaccord.
• Nstar (NST) Cut to Neutral at Merrill Lynch.
• Penn National Gaming (PENN) Cut to Hold at Deutsche Bank.
• Salesforce.com (CRM) Cut to Sell at UBS.
• Scana (SCG) Cut to Underperform at Merrill Lynch.
• Schering-Plough (SGP) Cut to Underperform at Merrill Lynch.
• Symantec (SYMC) Cut to Neutral at UBS.
• Terex Corp. (TEX) Cut to Market Perform at Wachovia.
• Trimble Navigation (TRMB) Cut to Perform at Oppenheimer.
• Xyratex (XRTX) Cut to Market Perform at FBR.

Jon C. Ogg
October 3, 2008

Source: 24/7 Wall St. | 3 Oct 2008 | 11:38 am

House scrambles to secure bail-out

US House leaders have been engaged in a frenzied round of meetings and vote-counting to secure sufficient backing for the $700bn US financial bail-out in a vote later on Friday as the world waited with baited breath for the package to be approved
Source: FT.com - US homepage | 3 Oct 2008 | 11:31 am

Eurozone services signal slowdown

Service activity in the 15-member eurozone failed to grow in September, in a further sign of a slowdown, figures suggest.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 11:29 am

Jobs go as service sector shrinks

The UK service sector shrank in September at its quickest rate in 12 years, with jobs cut for the fifth straight month.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 11:22 am

Dexia chief forced to forego severance pay

The French government on Friday forced the outgoing chief executive of Dexia, the Franco-Belgian bank bailed out by three governments earlier this week, to give up his severance payment.Axel Miller resigned...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 11:18 am

Wells Fargo Sneaks Into Wachovia, Steals It From Citi (WFC, WB, C, SOV, NCC, FITB)

Source: 24/7 Wall St. | 3 Oct 2008 | 11:12 am

Homeowners 'stop taking equity'

UK homeowners have stopped cashing in on the value of their homes, according to figures from the Bank of England.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 11:11 am

Slowdown fears hit commodities

Commodity markets remained under pressure on Friday, having endured sharp losses all week on fears that Europe and the UK will be following the US into recession.Oil markets looked set for their worst...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 11:00 am

Bank deposit guarantee raised to £50,000 after Brown bows to pressure

Officials this morning rushed out an increase in the depositor guarantee for British savers from £35,000 to £50,000 amid growing evidence that savers were defecting to Irish banks in the wake of the country's stunning savings promise earlier this week.
Source: Latest Business News from Times Online | 3 Oct 2008 | 10:59 am

Toyota announces zero-percent financing (AP)

AP - Toyota Motor Corp. has announced zero-percent financing on 11 models as it tries to woo would-be buyers sidelined by the consumer credit crunch.
Source: Yahoo! News: Business | 3 Oct 2008 | 10:59 am

Robert Peston

Bank of England buckles to bail out British banks
Source: BBC News | Business | World Edition | 3 Oct 2008 | 10:56 am

Dollar rally pauses for breath

The dollar eased on Friday after posting sharp gains in the previous session, but remained on course to put in its best weekly performance for 16 years. The dollar eased 0.3 per cent to $1.3855 against...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Oct 2008 | 10:25 am

Some Companies Don't Give A Damn About Recession: The Hamburger And Beer Economy (WMT)(PG)(CL)(MCD)

Ronald McDonald has just had a big meal and is picking his teeth.The stock market is telling him that McDonald's (MCD) won't be hurt by the recession. At $62, the shares of the largest fast-food chain are not down much from their 52-week high. Over the last three months, the Dow is off 7% and MCD is up almost 10%.

It does not matter that the fatty food the company sells will kill some customers before they make it to the exit. Where can people get a full meal for under $2?

Several companies, perhaps so few that they can be counted on primate hands, have nearly nothing to fear from a recession. They are not gloating. That would look unseemly. Their fortunes do say a great deal about how products and certain businesses become even more necessary in tough times.

Proctor & Gamble (PG) shares are off only $3 from their 52-week high of $75. Wall St. expects that the markets for deodorant, razors, and soap are not going to be hurt. Even when they are broke, most people still want to be clean. Colgate (CL) will benefit for the same reasons. Its shares are barely off their peak.

The single best example of a firm which could have a remarkably robust growth rate as the economy gets worse is Wal-Mart (WMT). Consumers who cannot shop at pricier outlets will keep streaming though the doors for "everyday low prices". At $59, the world's largest retailer trades only slightly below its 52-week high of just under $64 and is well above its period low of $42.50.

If there is an index of misery stocks, it will outperform the market by a significant amount over the next year. Even in a disaster, someone makes a buck.

Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Oct 2008 | 10:24 am

Downturn hits commodity prices

Commodities fall amid expectations that a wider downturn in the global economy will dent demand.
Source: BBC News | Business | World Edition | 3 Oct 2008 | 10:21 am

Manhattan real estate: Pricey but headed for a fall

The crisis on Wall Street hasn't hit the high cost of Manhattan real estate, but the economic slowdown has curbed the number of deals in the Big Apple, according to reports out Friday.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 10:06 am

Shock services fall stokes recession fears

Britain’s services sector shrank last month at a record pace, stoking fears that a recession is inevitable.
Source: Latest Business News from Times Online | 3 Oct 2008 | 10:03 am

The False Economies Of Falling Oil And Commodities Prices

The cost of a barrel of crude has fallen from $147 this summer to $95. On the abacus that is a drop of 36%. Gas is not down nearly that much and still sells for nearly $4 a gallon in some cities.

The prices of key agricultural commodities are also down by about a third and this has done severe damage to stocks in seed-makers and agricultural-chemical producers. But, the falling prices are not making it to many consumers.

Retailers are not passing their lower cost on to customers. They view the lower prices as an opportunity to make money.

Food stores and gas stations believe that the rise in commodities prices was not their fault. There is some logic to that which almost certainly makes it right. They did not create demand. They simply served it.

These businesses have suffered for over a year. Their margins have been destroyed because they could not pass their costs on to consumers without undermining the volume at which people bought their products.

Now, the food and gas industries have a chance for revenge and they are going to take it. That means the assumption that inflation will fall during a recession may not be true at all.

Profits are hard to come by in a sharp economic downturn. That is especially vexing to businesses which could not make money during the prosperous times. A second year of poor income could sink the supermarket business. The gross margins in the industry have always run in the low single digits. The retail gas industry has become so awful that large oil companies like Exxon (XOM) have dumped their petrol stations and put all of their resources into exploration and refining.

If the weather across the Northern Hemisphere is cold this year, heating oil companies will also prey on customers to keep their profits as robust as possible.

Commodities prices may be falling, but to the consumer, it will not matter one iota. Even with their incomes under pressure, the markets for the things they need most are going to harm them further.

Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Oct 2008 | 9:56 am

Blacks surfwear faces wipeout on rising losses

Blacks Leisure, the surfing to camping-gear retailer, today admitted that it is reviewing the future of its boardwear business after giving warning that losses during the first six months of its year will balloon to £4.5 million.
Source: Latest Business News from Times Online | 3 Oct 2008 | 9:54 am

UBS expects return to profit in third quarter

UBS confirmed that it expected to make a modest profit in the third quarter, in a first indication by a leading European bank of its performance during one of the most turbulent periods in financial markets in recent memory
Source: FT.com - US homepage | 3 Oct 2008 | 9:37 am

Carmakers ask EU for US-style loan

Europe's carmakers are to ask the European Commission for a €40bn loan to develop environmentally-friendly vehicles and engines in response to a US move to support domestic manufacturers
Source: FT.com - US homepage | 3 Oct 2008 | 8:45 am

WaMu CEO, 5 other execs are leaving

The CEO of failed Washington Mutual Inc. and five other senior executives of the largest U.S. thrift, now owned by JPMorgan Chase & Co., are leaving their positions soon.

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 8:36 am

Stocks slip 0.07% in initial trade (AFP)

AFP - Stocks edged lower on Friday, shedding just 0.07 percent amid ongoing concern over the fate of a multi-billion-dollar US rescue deal for Wall Street banks.

Source: Yahoo! News: Business | 3 Oct 2008 | 7:51 am

JPMorgan clears out Washington Mutual board

Washington Mutual's chief executive and five other senior executives of the failed US savings bank are to leave the company.
Source: Latest Business News from Times Online | 3 Oct 2008 | 7:51 am

Top Network Rail chiefs to go in shake-up

Sir Ian McAllister is to step down as chairman of Network Rail, following criticism of the state-backed company’s performance.
Source: Latest Business News from Times Online | 3 Oct 2008 | 7:42 am

Boeing strike in Seattle now affecting Southern California travelers and businesses

New airline V Australia cancels some flights because it doesn't expect to get the jets it had ordered any time soon. Layoffs loom at local aircraft parts suppliers that aren't receiving new orders.

A strike by Boeing Co. factory workers in the Seattle area has begun to hit Southern California travelers and local aerospace companies as the walkout has left at least one airline without the new planes it needs and aircraft parts makers facing layoffs.

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

Schwarzenegger to U.S.: State may need $7-billion loan

In a letter obtained by The Times, the governor warns that tight credit has dried up funds California routinely relies on and it may have to seek emergency aid within weeks.

California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

Airlines serve ads to a captive audience

Some carriers see overhead bins and even barf bags as valuable real estate for commercial messages. Others fear turned-off passengers would migrate elsewhere.

As if ads in public bathrooms and elevators aren't enough, some airlines are looking at placing them all over the cabin, from tray tables and window shades to overhead bins and bulkheads.

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

Nervous retailers face weak landscape with markdowns

With consumers low on cash, discounting is rife. Retailers expect a slow shopping season.

Alarmed by the financial meltdown, stores nationwide are slapping sale signs on fall sweaters, furniture and many other products -- frantically trying to attract shoppers who are cutting back.

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

Lobbying blitz ushers bailout bill back to House

Members are besieged by 'promises and threats on both sides' with second vote expected today.

Lobbying for the $700-billion financial rescue plan reached fever pitch as the hours ticked down toward today's climactic vote in the House, with powerful interest groups orchestrating last-minute appeals from constituents back home and the two major presidential candidates working the telephones.

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

Electric vehicles light up Paris Motor Show

Hybrids, plug-ins and pure electric vehicles arrive in force as manufacturers sort out battery woes.

Either Renault Executive Vice Chairman Patrick Pelata had too much champagne, or he knows something we don't.

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

China's version of Skype spies on text chats

Finding that messages with certain words are flagged and stored raises privacy worries.

A Canadian researcher has discovered that a Chinese version of EBay Inc.'s Skype communications software snoops on text chats that contain certain keywords, including "democracy."

Source: L.A. Times - Business | 3 Oct 2008 | 7:00 am

Venture firms brace for cash crunch

Harold Bradley manages $2.1 billion for the Kansas City, Mo.-based Ewing Marion Kauffman Foundation. If you are a venture capitalist looking for a new limited partner, he's got something to tell you. "Don't stop in here," he says. "Don't try and sell me on a new fund, and good luck trying with everyone else."

Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 5:13 am

Pumpkin Patch axes 30 jobs as retail slows down

Children's clothing company Pumpkin Patch says a slow retail environment is behind the move to cut 30 jobs at its Auckland head office. The company is making 30 staff redundant out of about 400 at its head office in Auckland to...
Source: New Zealand Herald - Business | 3 Oct 2008 | 3:00 am

Palin and Biden clash on taxes and Iraq

In one of the most anticipated vice-presidential debates in US political history, Sarah Palin and Joe Biden clashed over the economy and foreign policy, while pushing the policies of their senior running-mates
Source: FT.com - US homepage | 3 Oct 2008 | 2:37 am

Crisis takes wind out of Windflow sails

Christchurch wind turbine maker Windflow Technology raised just half its target in the second stage of a capital build, and is indicating global financial turmoil was a factor. Chief executive Geoff Henderson today said $2.6 million,...
Source: New Zealand Herald - Business | 3 Oct 2008 | 2:30 am

NZ Shares: Market continues to fall over bailout fears

The New Zealand stock market has continued its downward trend this afternoon, following the lead of the US market overnight. The NZX-50 index opened at 3232.64 after during the week the NZX-50 index worked its way back up from...
Source: New Zealand Herald - Business | 3 Oct 2008 | 2:00 am

Skype slams China partner on monitoring

Internet communications service accuses joint venture partner in China of keeping it in the dark about a programme that involved the monitoring of politically sensitive terms
Source: FT.com - US homepage | 3 Oct 2008 | 1:27 am

Canadian Cable Operator Offers Diverse Services, Even Wireless

Cable television is a mature business. So are old-fashioned telephones.

Source: Investor's Business Daily: BUSINESS | 3 Oct 2008 | 1:10 am

After The Close - Thursday

ANGIODYNAMICS (ANGO), a medical device maker, said its Q1 EPS fell 10% to 9 cents, meeting views. Revenue rose 18% to $44.3 mil. It backed '09 EPS...

Source: Investor's Business Daily: BUSINESS | 3 Oct 2008 | 1:10 am

Seller Financing Can Seal The Deal In Rough Market

With financial markets in turmoil and lending very tight, home sellers who own, or have equity and a stable mortgage, are financing deals to lift...

Source: Investor's Business Daily: BUSINESS | 3 Oct 2008 | 1:10 am

Business Briefs - Thursday

Monsanto outlook fails to halt fall. The seeds giant tumbled 16.2% to 82.01 despite lifting its full-year EPS outlook for a second time in three...

Source: Investor's Business Daily: BUSINESS | 3 Oct 2008 | 1:10 am

Trends & Innovations - Thursday

Docs turn to tech for 2nd opinion

Source: Investor's Business Daily: BUSINESS | 3 Oct 2008 | 1:10 am

ASB tightens credit screws as global crunch continues

The impact of the credit crunch is pushing further into the New Zealand banking scene, with ASB bank dropping its 'low- doc' and 80 per cent plus loans in new credit rationing move. Sold through ASB's broker lending division Sovereign...
Source: New Zealand Herald - Business | 2 Oct 2008 | 11:00 pm

Hedge funds prey on rivals

Hedge funds are embracing trading strategies designed to profit from the unwinding of large positions by their competitors, market participants say - an activity that stems from the wave of redemptions hitting hedge funds
Source: FT.com - US homepage | 2 Oct 2008 | 10:34 pm

RBC's Cassidy Sees a Recession Through First Quarter

Source: Bloomberg - All Podcasts | 2 Oct 2008 | 10:06 pm

F&P Finance secures funding

Fisher & Paykel Appliances' finance arm has secured new funding facilities worth $335 million. The announcement yesterday comes a day after the company said it could still forge ahead with a plan to raise $100 million through the...
Source: New Zealand Herald - Business | 2 Oct 2008 | 10:00 pm

VIX Index of U.S. Stock Option Prices Advances 13.7% to 45.26

Source: Bloomberg - All Podcasts | 2 Oct 2008 | 9:41 pm

New ETF to Include Companies Focused on Infrastructure

Source: Bloomberg - All Podcasts | 2 Oct 2008 | 9:39 pm

Wall Street slides on grim economic data

Industrial and material stocks led more Wall Street falls as concerns heightened that the intensifying credit squeeze was spreading beyond the financial sector
Source: FT.com - US homepage | 2 Oct 2008 | 9:30 pm

John Drinnan : Sky pulls punches in rugby bidding

Television networks have been working on a joint bid for television rights to the Rugby World Cup in 2011. TVNZ, TV3 owner MediaWorks and Sky Television are working on a combined bid to the International Rugby Board through its...
Source: New Zealand Herald - Business | 2 Oct 2008 | 9:00 pm

Fed Opens Bag of Tricks

Even as they were pressing Congress to pass a bailout plan, Federal Reserve and Treasury officials have been searching to see what other weapons they may have left to battle the credit crisis.

The arsenal may include another cut in interest rates, the Wall Street Journal reports.

Even considering a rate cut is a "turnaround" for the central bank, the paper notes, because the Fed in recent months has been warning about a rise in inflation, even as it remains focused on threats to economic growth.

The case for a rate cut, either later this month or in December, has built up in recent days as evidence of economic deterioration mounts. On Wednesday, an index of manufacturing activity contracted in September to its lowest level since the 2001 recession. Auto sales for the month were dismal, and the housing data just seemed to get worse and worse.

Meanwhile, the bipolar stock market was depressed again today, with the Dow Jones industrial average shedding 348.22, or 3.2 percent. (And those are the blue chip stocks; the more speculative Nasdaq Composite Index dropped 4.5 percent on Thursday.)

Tim Duy on the Economist's View blog notes that even an inflation hawk, Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, recently indicated in an interview with Market News International, that he was open to a rate cut.

But will another rate cut this year, to below the Fed's current benchmark of 2 percent, matter?

Duy suspects not:

"As long as the credit markets are impaired, rate cuts are almost a sideshow. Without a mechanism to channel large amounts of dollars to consumers, or some other sector of the economy, the Fed can drop rates to zero with little impact."

And, indeed, there is clearly no silver bullet for this financial crisis, whether it is monetary actions or the $700 billion bailout that was approved by the Senate on Wednesday night.

Despite the Senate's actions and the Journal report, stocks markets were mixed today.

And the cost of interbank borrowing, as measured by Libor, or the London Interbank Offered Rate, rose again today.

 

Related Links
The Abstract: Jackson Hole Symposium Papers
Incentives for Inflation
Hit the Panic Button


Source: Portfolio.com: Top 5 | 2 Oct 2008 | 9:00 pm

Online-Only Checking Pays More, but Has Drawbacks (Consumer Action)

You'll earn 3% or more in interest. And they can be fee-free. But they aren't for everybody.

Source: SmartMoney.com | 2 Oct 2008 | 8:59 pm

Banks' Woes Make ETNs Too Risky Right Now (Ticked Off)

Effectively IOUs from banks, exchange-traded notes carry too much risk for comfort.

Source: SmartMoney.com | 2 Oct 2008 | 8:47 pm

7 Stocks With Improving Profit Margins (Stock Screen)

We found seven companies whose profit margins are on the upswing.

Source: SmartMoney.com | 2 Oct 2008 | 8:40 pm

ETFs Sell Off on Weak Economic Data (Daily ETF Wrap-Up)

ETF investors turned their attention from Capitol Hill to find an economy in tatters.

Source: SmartMoney.com | 2 Oct 2008 | 8:29 pm

Dow Drops 348 Points

Disappointing data from the labor and manufacturing sectors sparked a selloff after the Senate bill.

Source: SmartMoney.com | 2 Oct 2008 | 8:20 pm

No Free PCs (Consumer Action)

So the much-hyped "free PC" deals aren't really free. In fact, they come with contracts that offer about as much freedom as you'd find in a Third World dictatorship. But for some, they just might make sense. Find out here if your next PC should be "free."

Source: SmartMoney.com | 2 Oct 2008 | 8:02 pm

Coalition calls for review of electricity market

A coalition of consumer, farmer and business groups is urging the Government to conduct a thorough and wide ranging review of the electricity market. Earlier this week the Government said it wanted to scrutinise Contact Energy's...
Source: New Zealand Herald - Business | 2 Oct 2008 | 8:01 pm

Finance crisis grounds Pero's flight float

The international financial crisis has claimed another New Zealand victim, with Christchurch-based Flight Experience Group shelving its plans for a sharemarket listing. The company, which has several high-profile backers, including...
Source: New Zealand Herald - Business | 2 Oct 2008 | 8:00 pm

The Pain on Main

Who shops in a credit crisis? Not enough people, it seems.

Plummeting auto sales have already illustrated how Wall Street's woes translate to Main Street. Plummeting auto dealers are next, with one of the country's biggest—Bill Heard Enterprises, based in Columbus, Georgia—already throwing in the towel.

Now other, less-credit-dependent retailers are showing signs of stress. New data compile by Sageworks, a Raleigh, North Carolina, business-software firm, shows how the economic downturn has hurt not just financial institutions, but privately held retailers.

Legions of stock analysts track the performance of publicly traded retailers like Macy's Inc. and The Gap Inc., but a large swath of privately owned or closely held companies—from Mom-and-Pop stores to large chains like Toys R Us—don't report data publicly.

Sageworks, which compiles data from nearly 300,000 privately held companies that use its software, says sales at privately held clothing retailers have actually started to shrink this year, falling 0.31 percent compared with growing 7 percent in 2006.

That is worse than the decline at publicly traded clothing stores, where sales fell to 1.3 percent this year from 5.3 percent in 2006. In both cases, the decline tracks the trajectory for U.S. home prices, which peaked in July 2006.

A number of retailers, including regional department store chains like Boscov's and Mervyns, have already sought refuge in bankruptcy courts. Those companies on the brink now face even more difficult barriers getting cash, as banks keep a white-knuckled grip on credit.

There's potentially a silver lining for these privately held companies, which are typically smaller than their public counterparts. Cash flow, as measured by EBIDA, has improved slightly since 2006 to 5.26 percent from 5.09 percent; publicly traded companies report the opposite trend.

How'd they improve their cash flow, as prices on supplies and energy edged up? Smaller sometimes translates into nimbler, according to Sageworks product manager Adam Filipponi. "Sensing the drop in profit margins and sales, they may have done some cost-cutting," he says.

Good thing, too, because this holiday season is unlikely to provide any relief. Deloitte & Touche is calling for the worst season since 1991.

Well, we'll always have 2006...Related Links
Holiday Forecast: Severe Chill
Sneak Preview: The First Gap Europe Collection
The Great Panic


Source: Portfolio.com: Top 5 | 2 Oct 2008 | 8:00 pm

NZ-Aust wage gap closing - Treasury

Treasury statistics show the wage gap between New Zealand and Australia has narrowed slightly. In 2006 wages in Australia were 30.7 per cent higher than in New Zealand. The latest figures for this year show they are 27.6 per...
Source: New Zealand Herald - Business | 2 Oct 2008 | 7:00 pm

Even sports takes a hit from the crisis

The economic downturn has spread to almost every industry, and sports is no exception. Host Kai Ryssdal gets details from business of sports expert Diana Nyad about the affect on sponsorships, TV ratings and more.
Source: Marketplace | 2 Oct 2008 | 4:57 pm

Jersey City and the Wall Street blues

Many Wall Street banks and financial services moved parts of their operations across the Hudson River, earning Jersey City the name "Wall Street West." Sally Herships learns that might not be such a good thing now.
Source: Marketplace | 2 Oct 2008 | 4:28 pm

$300 million for homeowners in trouble

Hope for Housing, is a new $300 million program to help homeowners facing foreclosure get new loans. It was part of the Fannie Mae-Freddie Mack deal. Stacey Vanek-Smith talks to some who want to see more.
Source: Marketplace | 2 Oct 2008 | 4:27 pm

A grim prediction for unemployment

The credit crisis is spreading like a bad flu. It's affecting construction, automakers and retail outlets. And, as reporter Steve Henn learns, more layoffs are on the way.
Source: Marketplace | 2 Oct 2008 | 4:27 pm

Inflation haunts Europe too

Inflation is running about 3 percent across the euro zone, well above the European Central Bank target of 2 percent, says European Bureau Chief Stephen Beard. He tells Kai Ryssdal that the level of fear is rising, as well.
Source: Marketplace | 2 Oct 2008 | 4:27 pm

Congressman: Bill prevents calamity

Republican Congressman John Campbell voted yes for the $700 billion rescue plan the first time around and tells Kai Ryssdal that he intends to do so again when it comes back to the House floor.
Source: Marketplace | 2 Oct 2008 | 4:27 pm

Bailout isn't enough for housing market

Commentator Chris Mayer says the Senate bailout bill won't directly help the housing market or foreclosures. His advice: Bring down mortgage rates. And, he adds, the government has to step in.
Source: Marketplace | 2 Oct 2008 | 4:26 pm

High anxiety over bailout pushes Wall St down

Wall Street stocks have tumbled with investors nervous about the global banking crisis as a crucial vote edged closer in the US House of Representatives on a massive financial rescue package. The Dow Jones Industrial Average sank...
Source: New Zealand Herald - Business | 2 Oct 2008 | 4:01 pm