Europe worries dent stock markets

Asian and European stock markets fall sharply as investors worry over the growing level of financial turmoil in Europe.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 12:31 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 12:31 pm

Before the Bell: Wachovia, eBay, ImClone Systems in the spotlight

U.S. stock futures tumbled Monday as the world's financial crisis didn't appear to be repaired by the $700 billion troubled asset rescue plan, with Germany seeing the need to guarantee its retail deposits and with inter-bank lending rates rising sharply. See story.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 12:31 pm

Biotech Implosion: CombinatoRx (CRXX)

Source: 24/7 Wall St. | 6 Oct 2008 | 12:30 pm

EBay to cut 10% of workforce, make acquisitions

Online auction provider eBay Inc. says it plans to cut its global workforce by about 10%, laying off around 1,000 full-time employees and several hundred temporary workers.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 12:30 pm

Libor reflects money market freeze; policy response eyed

LONDON (Reuters) - A slight fall in London interbank offered rates for three-month dollars on Monday offered a faint glimmer of hope that money market strains might be easing, but conditions remained poor and lending virtually non-existent across all maturities.

Source: Reuters: Business News | 6 Oct 2008 | 12:29 pm

Government action fails to halt global sell-off

Equities fell sharply around the world as efforts by policymakers to restore confidence failed. The FTSE 100 fell 5.6%, trading below 4,700 for the first time since 2004. European and Asian stocks dropped sharply
Source: FT.com - US homepage | 6 Oct 2008 | 12:29 pm

EBay to cut 10 percent of jobs, exceed profit view

NEW YORK (Reuters) - EBay Inc plans to cut its workforce by 10 percent and expects to exceed its third-quarter earnings forecast, the online auction Web site said on Monday as its shares rose nearly 2 percent in pre-market trading.

Source: Reuters: Business News | 6 Oct 2008 | 12:28 pm

Wells Fargo wins court rulings over Citi in Wachovia fight

Wells Fargo says its takeover agreement with Wachovia will go forward, as an appellate court overturns an earlier decision to block its acquisition of Wachovia in favor of rival bidder Citigroup, and as a report says the Federal Reserve may seek to broker a deal.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 12:28 pm

Iceland acts to guarantee deposits

Iceland guaranteed all deposits in the country's banks as it sought to reassure local savers about the health of the country's beleaguered financial system
Source: FT.com - US homepage | 6 Oct 2008 | 12:26 pm

Governments act to stem crisis, markets shaken

LONDON/BERLIN (Reuters) - More European governments followed Germany's lead on Monday offering guarantees to savers in a frantic effort to calm fears among investors over the worst financial crisis in 80 years.

Source: Reuters: Business News | 6 Oct 2008 | 12:24 pm

Crocs Shrinkage (CROX)

Source: 24/7 Wall St. | 6 Oct 2008 | 12:24 pm

Bank uncertainty hits UK shares

UK shares fall sharply, with the FTSE 100 down 5% as investor concern grows for the health of European banks.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 12:23 pm

Stock futures slide on credit woes; Citi lower

NEW YORK (Reuters) - Stock index futures slid on Monday as concerns about the widening fallout from the credit crisis fueled a global equities sell-off, and bank rescues in Europe heightened fears about the stability of major financial institutions.

Source: Reuters: Business News | 6 Oct 2008 | 12:23 pm

New car registrations fall by 21%

New car registrations fall 21% in September, says the Society of Motor Manufacturers and Traders.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 12:20 pm

Global stocks plunge, yen leaps as crisis escalates

LONDON (Reuters) - World stocks plunged to three-year lows on Monday as investors fled to government bonds, gold and the low-yielding yen, fearing policymakers' efforts to contain the credit crisis might not be enough to prevent a recession.

Source: Reuters: Business News | 6 Oct 2008 | 12:18 pm

eBay to trim global workforce by 10%

The world's largest auction Web site, eBay Inc., announced Monday that it will cut 10% of its global workforce, or about 1,000 employees, citing efforts to streamline its business.

Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 12:17 pm

Flip Books Return and Prosper as Marketing Tool in Down Economy

Economic Crisis Leads Marketers to Discover What's Old Is New Again MOUNT KISCO, N.Y., Oct. 6 /PRNewswire/ -- Flippies, a New York-based manufacturer of custom flip...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:15 pm

Douglas Valley: Midwest's First Organic Vineyard Community Grow Your Own Grapes at Home!

MANISTEE, Mich., Oct. 6 /PRNewswire/ -- In a simpler time in America, agricultural communities thrived. Neighbors spent time together and pitched in during harvest...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:15 pm

Ninetendo Paints A Target On Apple (AAPL)

Nintendo wants revenge. Now that Apple (AAPL) has come out with an iPhone that can download games, the Japanese company appropriately believes that Jobs wants their business.

According to BusinessWeek, the new Nintendo DSi will connect to the internet via WiFi and will allow for downloads of music, video, data, and games. Nintendo has sold 77 million units of the DS line.

For the time being, Nintendo probably has nothing to worry about. The new 3G iPhone has had problems with connections to AT&T's (T) high-speed network. It is not clear that consumers are even aware that the iPhone is set up to play video games.

Nintendo, on the other hand, has expanding beyond old-line gaming to products including the Wii Fit. If its WiFi system works well, it may take some holiday market share from Apple.

Douglas A. McIntyre

Source: 24/7 Wall St. | 6 Oct 2008 | 12:10 pm

Stock crunch deepens

Stock were in for a bruising on Monday after a deepening financial crisis in Europe heightened worries about a global economic slowdown.

Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 12:06 pm

Citi, Wachovia off on deal uncertainty (Reuters)

Reuters - Shares of Citigroup Inc dropped 6 percent to $17.25 on Monday on uncertainty about plans to take over embattled Wachovia Corp .

Source: Yahoo! News: Business | 6 Oct 2008 | 12:06 pm

Citi, Wachovia off on deal uncertainty

NEW YORK (Reuters) - Shares of Citigroup Inc dropped 6 percent to $17.25 on Monday on uncertainty about plans to take over embattled Wachovia Corp .

Source: Reuters: Business News | 6 Oct 2008 | 12:06 pm

Iceland's bank shares suspended

Trading in Iceland's six biggest financial shares is suspended, says the country's stock exchange.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 12:01 pm

Eli Lilly pays $6B for ImClone

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 12:00 pm

Lexington Realty Trust Announces Repurchase of Exchangeable Notes at Discount

NEW YORK, Oct. 6 /PRNewswire-FirstCall/ -- Lexington Realty Trust (NYSE: LXP) today announced that it recently repurchased an aggregate of $32.5 million original...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

Success, by George!

When Tate George finished his basketball career at the University of Connecticut, stardom seemed on the horizon.

Who could forget his last-second, game-winning shot against Clemson in the Sweet 16 of the 1990 N.C.A.A. Tournament? With one second remaining and the Huskies trailing by a point, 70-69, Scott Burrell heaved a full-court pass to George, who then turned around and buried a jumper to win the game, propelling Connecticut to the "Elite Eight."

And while that moment may have immortalized George forever, thanks to YouTube and ESPN Classic, his biggest lessons didn’t come from that success.

What drives him now as the head of his own real estate development company are the lessons he learned as his sports career was winding down.

In his third year with the New Jersey Nets—who made him a first-round pick in the 1990 N.B.A. Draft--he found himself headed to the bench or out of town instead of the starting role he’d expected. The Nets had drafted another phenom, Kenny Anderson, to play guard and had invested millions in him.

George remembers Nets coach Chuck Daly telling him that life wasn’t fair. Daly, George says “was letting me know that it had nothing to do with talent. It had a lot to do with the business of professional sports. Typically, the guy that makes the most money plays. It's a bigger investment. That stuck with me."

But he also learned that when he came off the bench, he needed to make the most of his opportunities when he was called upon.
 
And while George's N.B.A. career didn’t match his years at UConn, that time in the pros might have been more important to the rest of his life. It was then—during stints with three teams—that he learned life lessons, especially those four words, "Life is not fair," and to seize opportunities when you can.
 
Since he left the hardwood, he has gone on to launch the George Group, establishing the stable and substantial real development portfolio of the company that currently exceeds $500 million. His business education began with a degree from the University of Connecticut and continued with a real-world education in Wall Street banking in New York.
 
Since the founding of the George Group, he has built relationships and raised millions of dollars for an extended variety of clients in the fields of commercial development, real estate development, and international finance, as well as the entertainment and sports industries.

George's company, which has six employees in New Jersey and Florida, has put $51 million into three public/private redevelopment projects.

In New Jersey, the company will be pouring in $24 million into redeveloping 102 lots for affordable and mixed income single-family homes in Newark in Newark ($24 million) and $13 million into East Orange for 140 units for mixed income and senior housing.

In Florida, George's company will be spending $14 million to redevelop 160 units for mixed income use in Orlando. All the projects are joint ventures with the public where George's company will be contributing funds with local municipalities.

His relationships in professional sports endure and he enjoys serving as a financial mentor to young N.B.A. players. More so, the values that stem from his early career have formed the foundation for the values of the George Group: teamwork, efficient strategy, and the execution of excellence.

Related Links
Roses Aren't Green for Bulls
The N.B.A.'s Maestro of Marketing
Gambling Strategies: Always Bet on White (Referees)


Source: Portfolio.com: Top 5 | 6 Oct 2008 | 12:00 pm

Barcelo Hotels & Resorts Appoints John Schultz as Marketing/Advertising Manager for the U.S. and Canada

FAIRFAX, Va., Oct. 6 /PRNewswire/ -- Barcelo Hotels & Resorts today announced the appointment of John Schultz as Marketing/Advertising Manager for the U.S. and Canada
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

Lockheed Martin Wins $41 Million U.S. Defense Contract to Sustain the Global Transportation Network

GTN Records 10 Billionth Transaction in Tracking and Managing Forces, Material and Support Personnel Throughout DoD Distribution Chain MOUNTAIN VIEW, Calif., Oct. 6...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

Millennium India Acquisition Company Announces Online Trading Alliance Between Principal Investment - SMC Group - and Punjab National Bank

- India's Massive Tech-Savvy Population Represents Significant Growth Opportunity in Online Trading - NEW YORK, Oct. 6 /PRNewswire-FirstCall/ -- Millennium India...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

Raytheon Awarded First Phase of Army's Integrated Battle Command System

TEWKSBURY, Mass., Oct. 6, 2008 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has won the first stage of a competitive, multi-phase U.S. Army award for the Integrated...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

ACASS unveils details of US service offering

Program tailored to needs of US flight departments in today's business aviation environment ORLANDO, FL, Oct. 6 /PRNewswire/ - ACASS, a leading...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

Two-Thirds of Struggling Homeowners Meet Key Criteria for Housing Bill Relief, According to Survey by CCCS of Greater Atlanta

ATLANTA, Oct. 6 /PRNewswire/ -- Almost two-thirds of homeowners who called Consumer Credit Counseling Service (CCCS) of Greater Atlanta for foreclosure prevention...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

JetCorp Introduces the Renaissance Series CRJ100/200 Executive Conversion Program

Launch Customer Announced at NBAA 2008 ST LOUIS, Oct. 6 /PRNewswire/ -- JetCorp Technical Services, LLC ("JetCorp") today announced its newest executive...
Source: Infocious RSS raw feed - channel BNewsBusiness | 6 Oct 2008 | 12:00 pm

Keep Seat Belts Fastened

"All that is solid melts into air, all that is holy is profaned, and man is at last compelled to face with sober senses his real conditions of life, and his relations with his kind."

A specter is haunting Europe, and nearly all the developed world — the specter that the U.S. credit crunch is now a global crunch.

Stocks tumbled in markets around the world today as European governments scrambled to contain the financial crisis. Money market rates continue to climb. And U.S. stock index futures are pointing to a big sell-off this morning.

The response confirms that the new U.S. bailout program won’t provide immediate relief to the stresses on the global financial system.

On Friday, after the House passed the bailout legislation, stocks quickly tumbled. The measure authorizes the Treasury secretary to spend as much as $700 billion for buying up the illiquid assets on the balance sheets of many U.S. financial institutions.

Skeptics of the bill warned that the plan was flawed from the start, but the frozen credit markets forced legislators into action now instead of waiting until after the election. (For more on the pros and cons of the bailout, see this interactive.)

The response in Europe and Asia indicates that the U.S. effort may be too little, too late. Fear is begetting fear. A more ambitious, globally coordinated response is needed.

Over the weekend, Europe’s biggest economy, Germany, promised to guarantee private deposits, and Sweden, Austria and Denmark followed.  Ireland offered insurance to deposits last week. The French bank BNP Paribas bought operations of Fortis in an emergency takeover. Iceland halted trading in shares of its banks.

Shares in London and Frankfurt fell more than 5 percent. Paris was down 6 percent. Tokyo closed down 4.3 percent. Russian markets plunged 15 percent.

"It shouldn’t have come to this. A year ago, Europe looked well placed to fend off financial ills,” Edward Hadas says on Breakingviews.com.

“It turned out, though, that some European banks had dabbled too much in overvalued and overly complex U.S. assets. The authorities have also been slow. Governments solutions to institutional problems have been fragmentary and central bank liquidity provision reactive.”





 

 

Related Links
The Buck Stops Where?
Incentives for Inflation
Hit the Panic Button


Source: Portfolio.com: Top 5 | 6 Oct 2008 | 12:00 pm

Hypo Real Estate tripped by funding strategy in Depfa unit

Hypo Real Estate, the troubled commercial property lender rescued by the German government Sunday, pays a hefty price for a risky funding strategy in Depfa, its public finance unit.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 11:57 am

Eli Lilly to acquire ImClone for $70 a share

Eli Lilly & Co. says it will buy cancer-drug developer ImClone Systems for $70 a share, or about $6.5 billion, in an all-cash deal that is not subject to any financing conditions.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 11:54 am

Hartford gets capital boost from Allianz, warns of loss

Hartford Financial Services Group says it will receive a $2.5 billion capital investment from German insurance giant Allianz as it faces more than $2 billion of investment losses, largely from its holdings in the financial-services sector.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 11:53 am

Stock futures slide on credit woes; Citi lower (Reuters)

Reuters - Stock index futures slid on Monday as concerns about the widening fallout from the credit crisis fueled a global equities sell-off, and bank rescues in Europe heightened fears about the stability of major financial institutions.

Source: Yahoo! News: Business | 6 Oct 2008 | 11:51 am

Eli Lilly to buy ImClone for $6.5 billion

BOSTON (Reuters) - ImClone Systems Inc has agreed to be acquired by Eli Lilly and Co for about $6.5 billion, after rejecting a sweetened bid from Bristol-Myers Squibb Co, the companies said on Monday.

Source: Reuters: Business News | 6 Oct 2008 | 11:50 am

Lack of EU cooperation worsens turmoil: economists

Even a watered-down pledge by the European Union’s top leaders to “coordinate” individual efforts to shore up the troubled banking sector proved overly ambitious, undercutting the euro and exacerbating losses across European equity markets on Monday, economists said.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 11:50 am

Media Report: Plenty to talk about across radio dial in '08

Talk radio's potentially never had it better: Lots of political advertising dollars to go with a historic presidential election and a financial meltdown

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 11:46 am

Movers & Shakers: Monday's biggest gaining and declining stocks

Stocks expected to move substantially in Monday’s trading include ArcelorMittal, Bank of America, Coke, Genentech, Hartford Financial Services, ImClone, MasTec, OSI Pharma, Roche, and United Community Banks.

Source: MarketWatch.com - Top Stories | 6 Oct 2008 | 11:45 am

Governments act to stem crisis, markets shaken (Reuters)

Reuters - More European governments followed Germany's lead on Monday offering guarantees to savers in a frantic effort to calm fears among investors over the worst financial crisis in 80 years.

Source: Yahoo! News: Business | 6 Oct 2008 | 11:36 am

Top Pre-Market Analyst Downgrades (ADBE, AMB, BLKB, KO, EMCI, HSII, KFN, OMTR, PLD, VAR, VMW, VMC)

These are some of the top downgrades we have seen this Monday morning with about 2 hours until the open:

• Adobe Systems (ADBE) Cut to Market Perform at FBR.
• AMB Property (AMB) Cut to Sell at Goldman Sachs.
• Blackbaud (BLKB) Cut to Market Perform at Wachovia.
• Coca-Cola (KO) Cut to Hold at Deutsche Bank.
• EMC Insurance (EMCI) Cut to Underperform at KBW.
• Heidrick & Struggles (HSII) Cut to Underperform at Baird.
• KKR Financial (KFN) Cut to Neutral at JPMorgan.
• Omniture (OMTR) Cut to Market Perform at FBR.
• ProLogis (PLD) Cut to Sell at Goldman Sachs.
• Varian Medical (VAR) Cut to Neutral at JPMorgan.
• VMware (VMW) Cut to Market Perform at Wachovia.
• Vulcan Materials (VMC) Cut to Sell at Goldman Sachs.

Jon C. Ogg
October 6, 2008

Source: 24/7 Wall St. | 6 Oct 2008 | 11:36 am

Top Pre-Market Analyst Upgrades (ALD, ADM, DLTR, MON, SINA, WFC)

These are some of the top upgrades we have seen this Monday morning with about 2 hours until the open:

• Allied Capital (ALD) Raised to Neutral at JPMorgan.
• Archer Daniels Midland (ADM) Started as JPMorgan.
• Dollar Tree Stores (DLTR) Raised to Overweight at JPMorgan.
• Monsanto (MON) Raised to Overweight at JP Morgan.
• Sina Corp. (SINA) Raised to Overweight at JPMorgan.
• Wells Fargo (WFC) Raised to Market Perform at KBW.

Jon C. Ogg
October 6, 2008

Source: 24/7 Wall St. | 6 Oct 2008 | 11:33 am

Paulson to name adviser to oversee U.S. bailout: paper

PHILADELPHIA (Reuters) - Treasury Secretary Henry Paulson is expected to name Neel Kashkari to oversee the $700 billion program to buy distressed assets from financial institutions, The Wall Street Journal reported on Sunday.

Source: Reuters: Business News | 6 Oct 2008 | 11:30 am

Markets tumble as banking fears spread across Europe

German savings pledge raises stakes for Brown | In depth: every country for itself as European unity collapses | Comment: Anatole Kaletsky | Analysis: David Wighton | Stricken Iceland sends out financial SOS
Source: Latest Business News from Times Online | 6 Oct 2008 | 11:28 am

Eli Lilly to buy ImClone for $6.5 billion (Reuters)

Reuters - ImClone Systems Inc has agreed to be acquired by Eli Lilly and Co for about $6.5 billion, after rejecting a sweetened bid from Bristol-Myers Squibb Co, the companies said on Monday.

Source: Yahoo! News: Business | 6 Oct 2008 | 11:24 am

Nomura takes on Lehman's Indian IT businesses

Nomura, Japan's largest brokerage house, has agreed to buy Lehman Brothers' IT support companies in India for an undisclosed sum — a move that further strengthens its hold on the operations of the collapsed Wall Street bank.
Source: Latest Business News from Times Online | 6 Oct 2008 | 11:10 am

Credit crisis adds to pressures on auto dealers (AP)

AP - Hundreds of thousands of new cars and trucks that would have quickly made their way to people's driveways a year ago are now stacking up on dealer lots across the country, with potential buyers worried about whether they'll keep their jobs, be able to pay for gas, or qualify for a car loan.

Source: Yahoo! News: Business | 6 Oct 2008 | 11:09 am

Crisis hits global banking shares

European financial stocks suffered sharp falls on Monday, as worries about the extent of the crisis in the sector deepened after finance ministers failed to reach a consensus on how to react. Dizzying...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 11:06 am

Oil sinks below $90 a commodities retreat

US crude oil prices fell below the $90 a barrel level on Monday, leading a broad retreat across energy, metals and grains as commodities found themselves battered by the ongoing storm sweeping across global...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 11:05 am

No extra safety for German savers

The German government will not pass any new legislation to provide extra protection for savers, the BBC learns.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 10:59 am

BNP to take control of Fortis

French bank will take control of the remaining assets after the Belgian government was forced to find a buyer following the shock Dutch nationalisation of its part of the troubled banking and insurance group
Source: FT.com - US homepage | 6 Oct 2008 | 10:55 am

BNP takes control of Fortis in €14.5bn deal

French bank will take control of the main Belgian banking and insurance operations of Fortis in a deal brokered by the Belgian government following the surprise nationalisation of the group's Dutch businesses
Source: FT.com - US homepage | 6 Oct 2008 | 10:54 am

BNP takes control of Fortis in 14.5bn deal

BNP Paribas, the French bank, will take control of the main Belgian banking and insurance operations of Fortis in a deal brokered by the Belgian government following the surprise nationalisation of the...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 10:54 am

European banks tumble on credit fears

European financial stocks cratered on Monday, as worries about the extent of the crisis in the sector deepened after finance ministers failed to reach a consensus on how to react. "The banking system doesn't...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 10:52 am

Fight over Wachovia intensifies

The battle for Wachovia continues as Wells Fargo secures an appeal court ruling that overturns an attempt to block the takeover.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 10:44 am

Oil price dips below $90 a barrel

Oil prices fall to an eight-month low of less than US $90 a barrel and shares on Gulf stock markets fall sharply.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 10:27 am

Countrywide Gets Too Expensive For Bank Of America (BAC)

Because management at Countrywide turned out to be thieving goons, Bank of America (BAC) is stuck with mortgages which should never have been granted by the huge housing lender.

As they must do to keep their jobs, state attorneys general went after Countrywide for bilking homeowners into buying houses which they could not afford, causing serial defaults. It does not seem to matter that the people who wanted the mortgages refused to do the math on what they could afford.

According to The Wall Street Journal, Bank of America will buy off the state legal authorities for just over $8 billion. ".The deal will cover nearly 400,000 borrowers, Bank of America announced on Monday. It will apply to borrowers who took out subprime loans with adjustable or fixed interest rates, as well as those with option adjustable-rate mortgages that are serviced by Countrywide."

The deal has several glaring weaknesses. Not all of the states suing Countrywide have agreed to the arrangement. It also does not keep individual homeowners from forming a class action suit against the bank.

Most importantly, it is not clear how the money gets to those 400,000. The bureaucracy required will be enormous. Deciding exactly who qualifies will be impossible.

The settlement papers over the real problem. The little guy is still thrown out of his house and winds up living on the street.

Douglas A. McIntyre

Source: 24/7 Wall St. | 6 Oct 2008 | 10:27 am

Asian stocks sink on gloomy outlook

Asia-Pacific markets sank on Monday as investors focused on growing concerns about a global recession and the lengthening list of banks falling victim to the credit crisis, leaving the passing of the US...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 10:21 am

Savers frozen out as Icesave website collapses

Savers seeking to withdraw money from Icesave, an arm of Landsbanki, the Icelandic bank, today found they could not operate their accounts online.
Source: Latest Business News from Times Online | 6 Oct 2008 | 10:19 am

Will The Fed Save America's Major Industries?

Perhaps the Fed and the Treasury have saved the banking and brokerage industries. The Fed has certainly provided hundreds of billions of dollars at its emergency window and Paulson has his $700 billion.

Next up in the rolling disaster which is taking down the American economy is all of those big companies, cities, and states which may not have access to capital to keep themselves operating. With plenty of mouths to feed, there may not be enough salvation to go around.

According to Bloomberg, The central bank has power to extend credit to any company under ``unusual and exigent circumstances.'' With really big firms including GM (GM) and Gannett (GCI) pulling down on their credit lines because the commercial paper market has been decimated, some portion of the Fortune 500 may be hard up for cash.

If the Paulson plan does not defrost the credit market in a few weeks, companies and governments will be begging for relief. Former body-builder and "Academy Award-winning" actor turned California governor Arnold Schwarzenegger says his state needs a $7 billion short-term loan. With 50 states, the requests could move up into the hundreds of billions of dollars.

On the private enterprise side, the auto industry has already gotten a gift of $25 billion in loan guarantees, but those will not supply access to cash the this week of next. The airline industry has plenty of problems. If there is no credit for payrolls, capex, and inventory purchases, there may very few parts of the corporate world that escape.

The lifeboats are limited and the number of firms that need them is growing. The Fed may well be left to decide whether some huge companies have to shrink rapidly or suspend operations completely.

The most damaging portion of the credit crisis was supposed to be handled, but that is not even remotely true.

Douglas A. McIntyre

Source: 24/7 Wall St. | 6 Oct 2008 | 10:14 am

Apple hit by Web rumor

Apple shares fell sharply Friday morning after an erroneous Web report saying founder and CEO Steve Jobs had suffered a heart attack. Shares quickly recovered after it became clear the rumor was not true.

Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 9:56 am

Cutting The Baby In Half At Wachovia (WB)(WFC)(C)

A sword was brought, and Solomon ordered,"Cut the baby in half! That way each of you can have part of him." 2 Chronicles 1.1-1.3

If Vikram Pandit at Citigroup (C) had not screwed up the purchase of Wachovia, the Fed would not have to be involved. Wells Fargo (WFC) came in with a competing offer. The whole fiasco has ended up in court. Citi had successfully argued for a stay of the WFC buyout. Then a appeals court said the decision was not valid.

Now, the New York Fed has been pulled into the action and hopes to fashion some compromise among the three banks.

The first and most logical solution being proposed is that Citigroup and Wells Fargo each take a portion of the Wachovia branches. That leaves the junk on Wachovia's balance sheet, mostly bad mortgages and mortgage-backed paper. According to The Wall Street Journal, "the plans being discussed Sunday night don't entail either buyer receiving financial assistance from the U.S. government." That may be a problem. As the collapse of the credit markets accelerates and mortgage defaults rise, the Wachovia balance sheet will become a cancer that no one wants.

It may ultimately be left to the boards of directors at the banks and perhaps to the courts to decide which of the proposed marriages goes through. It is hard to see where the Fed has leverage, if it is unwilling to guarantee any floor on the value of the Wachovia paper.

That means the Fed may be bluffing, at least for now. The most likely solution is that it will offer to back some of Wachovia's worst assets for WFC or Citi. Alternatively, it could agree to a safety net which would allow a private equity firm or vulture fund to take on the paper. A fund may be able to hold the toxic bonds until they mature. If it can buy the paper for cents on a dollar, it could be an immensely profitable transaction.

At least someone will make money off of the credit crisis

Douglas A. McIntyre

Source: 24/7 Wall St. | 6 Oct 2008 | 9:54 am

'Rescued' car parts group closes

A Sheffield-based car parts company with 53 branches nationwide ceases trading just days after a takeover deal.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 9:53 am

Banking stocks plummet across Europe

European financial stocks suffered sharp falls on Monday, as worries about the extent of the crisis in the sector deepened after finance ministers failed to reach a consensus on how to react. Dizzying...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 9:43 am

The techie's new $1,600 throne

The latest object of technophile lust is a sight to behold, with an exoskeleton climbing up its singular back and enough levers and knobs to land a Cessna. Herman Miller's much-anticipated office chair, the Embody (list price: $1,595), is finally rolling out this month. Six years and millions of dollars in the making, the Embody is ready to one-up its iconic predecessor, the Aeron, which in 1994 revolutionized the act of sitting down.

Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 9:38 am

Balfour Beatty pays £2.25m after SFO probe

Balfour Beatty, the UK construction group, will pay £2.25 million after a Serious Fraud Office (SFO) investigation into inaccurate accounting at an Egyptian joint venture.
Source: Latest Business News from Times Online | 6 Oct 2008 | 9:36 am

The Recession Is Coming Home For The Holidays (M)(SHLD)(GPS)(JCP)

Santa will be thinner this year, a sign that he cannot afford all that rich food. It is a good thing that he wears a beard because can't afford a razor.

By most estimates, this will be the worst holiday shopping season since 1991. That is optimistic. The better benchmark is probably the deep recession of 1973.

Some retailers may not have access to the credit needed to keep items in inventory. It won't matter much to them if shoppers show up or not. They won't have anything to sell.

According to The Wall Street Journal, "When they report September sales this week, many retail chains are expected to show big drops in sales at stores open at least year." For operators including JP Penney (JCP) and Gap (GPS), sales could drop by double digits.

Retailing may be a case of where recession begets recession. Temporary employees hired to staff stores for heavy holiday shopping may not be needed. Some full-time workers could be pushed out, adding to unemployment numbers.

While the average store may post a heavy downturn in sales, it could eventually have a perverse benefit for the retail industry. Several of the weakest retailers including Sears (SHLD) and Macy's (M) certainly have too many stores. A pruning of operations would actually create smaller and more profitable companies. Some retail companies may fail altogether, but whatever is left of their customer bases will further strengthen the corporations which stay in business.

The bad holiday will over time be good for the best companies in the retail industry.

Douglas A. McIntyre

Source: 24/7 Wall St. | 6 Oct 2008 | 9:32 am

BNP Paribas scoops up Fortis assets in credit crunch

PARIS/BRUSSELS (Reuters) - BNP Paribas agreed to scoop up assets in Belgium and Luxembourg of banking and insurance group Fortis for 14.5 billion euros ($20.1 billion) to become the euro zone's biggest deposit bank.

Source: Reuters: Business News | 6 Oct 2008 | 9:32 am

Risk aversion boosts yen

Currency trading sounded a highly risk-averse tone on Monday as global equity markets sank on doubts over whether rescue deals to save stricken financial institutions and avert recession would be effective...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 9:03 am

Lehman CEO Set To Pull A Jeff Skilling Before Congress?

Bloomberg reports that "Richard Fuld, the chief executive officer of Lehman Brothers Holdings Inc., may tell legislators angry about Wall Street's excesses that eroding confidence in the financial system led to the demise of his firm."

Fuld is set to testify before the House Committee on Oversight and Government Reform, and seems likely to invoke the "crisis of confidence" and "run on the bank" explanation for Lehman's collapse. If that sounds familiar, it should. Testifying before the U.S. House Energy and Commerce Committee on February 7, 2002, former Enron CEO -- and current federal inmate number 29296-179 -- told Congress that "It is my belief that Enron's failure was due to a classic run on the bank, a liquidity crisis spurred by a lack of confidence in the company. At the time of Enron's collapse, the company was solvent and highly profitable -- but apparently not liquid enough."

And yet that explanation didn't hold water for Enron, and it doesn't hold water for Lehman: because both companies turned out to be insolvent. We know that because anyone who wanted to acquire Lehman for 2 bottles of Pepto Bismol could have had it, but no one did and so the company was forced into bankruptcy. In a way it's hard to argue with Skilling's argument in the sense that it's true: if Enron's creditors had been willing to continue lending the company cash, it wouldn't have gone bankrupt. That is true of any company. As long as investors will throw good money after bad, the game can continue.

But the issue is that there wasn't anything worth saving at Lehman -- if there were, someone would have scooped it up for $1.

Zac Bissonnette

Source: 24/7 Wall St. | 6 Oct 2008 | 9:02 am

Kesa turns to PPR for new chief executive

Kesa Electricals, the owner of Comet, has named a new chief executive less than a month after warning investors that it expected Britain's second biggest electrical goods retailer to fall into the red.
Source: Latest Business News from Times Online | 6 Oct 2008 | 8:53 am

The big chill

Iceland catches a cold from frozen money markets
Source: BBC News | Business | World Edition | 6 Oct 2008 | 8:41 am

FedEx CEO: 'Economy will come around'

If you're looking for insight into the global economy, Fred Smith is a pretty good place to start. As CEO of Memphis-based package-delivery giant FedEx, he oversees an army of some 290,000 workers who collectively move 7.6 million parcels daily to more than 220 countries.

Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 8:37 am

UniCredit seeks to raise 6.6bn

UniCredit on Sunday night announced plans to raise up to 6.6bn ($9bn) in new capital as the embattled Italian banking group moved to shore up its defences against a sliding share price and the global financial...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 8:27 am

Kesa ends search for a new chief exec

Kesa Electricals, Europe's third biggest electrical retailer, on Monday named Thierry Falque-Pierrotin, an executive at French retailing and luxury goods group PPR, as its new chief executive. Mr Falque-Pierrotinis...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 8:01 am

PPR executive to head Kesa

Kesa Electricals, Europe's third biggest electrical retailer, on Monday named Thierry Falque-Pierrotin, an executive at French retailing and luxury goods group PPR, as its new chief executive. Mr Falque-Pierrotinis...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 6 Oct 2008 | 8:01 am

Fed moves to broker deal for Wachovia: sources

WASHINGTON/NEW YORK (Reuters) - The U.S. Federal Reserve is brokering discussions between Wells Fargo & Co and Citigroup Inc over which of the banks will buy Wachovia Corp's assets, people familiar with the matter said on Sunday.

Source: Reuters: Business News | 6 Oct 2008 | 7:53 am

BNP Paribas pays €14.5bn to control Fortis

BNP Paribas, the French bank, agreed this morning to pay €14.5 billion (£11.2 billion) in cash and shares to take control of stricken bank Fortis.
Source: Latest Business News from Times Online | 6 Oct 2008 | 7:00 am

Germany guarantees savings

Germany said it would guarantee all private German bank accounts – currently worth €568bn – in a dramatic move to prevent panic withdrawals as fears over the worldwide financial crisis spread to Europe's largest economy
Source: FT.com - US homepage | 6 Oct 2008 | 7:00 am

In Lakewood, the downturn hits home

Residents are worried about job security, retirement and making ends meet. On Candlewood Street, some are scared that they're just a few paychecks or an unforeseen crisis away from disaster.

Candlewood Street in Lakewood is a regular neighborhood filled with regular people -- young and old, Republicans and Democrats, blacks, whites, Latinos and Asians. The lawns of the 1950s-era houses are groomed, and some porches are dressed with U.S. flags. In one yard, children toss a football as a couple walk nearby with a dog.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

Countrywide mortgage pact may be worth $3.5 billion to California loan holders

Bank of America Corp. agrees to nation's largest mortgage-workout program to settle charges of lending abuse.

An estimated 125,000 Californians who are struggling with risky mortgages from Countrywide Financial Corp. may get their loans modified and payments reduced under a program to be announced today.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

'Beverly Hills Chihuahua' tops weekend box office

The Disney film does better than expected, grossing $29 million and knocking 'Eagle Eye' into second place.

A cast of diminutive dogs took a big bite out of the box office over the weekend as "Beverly Hills Chihuahua" debuted with a top-grossing $29 million.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

U.S., state judges clash over Wells Fargo takeover of Wachovia

A New York judge's order that the deal be put on hold is temporarily blocked. A hearing on the dispute pitting Wells against Wachovia suitor Citigroup will be held Tuesday in federal court.

Wells Fargo & Co. and Citigroup Inc.'s dispute over their competing agreements to acquire Wachovia Corp. became a battle of dueling state and federal judges Sunday.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

Regulator takes heat over IndyMac Bank failure

Critics say Darrel Dochow of the Office of Thrift Supervision and others ignored warning signs. He also had an oversight role in the 1980s savings and loan crisis.

As the mortgage crisis deepened in California last year, officials in Washington put the fate of thrifts in the West in the hands of a veteran regulator who had a memorable role in the last major crisis in the savings and loan industry.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

How much foreclosure relief will homeowners get from bailout plan?

The rescue package for the financial system includes measures designed to stem the rising tide of foreclosures. Here's a look at the specifics.

The $700-billion rescue package for the financial system includes measures designed to stem the rising tide of foreclosures. Here's a look at the specifics.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

Looking for loans in new places

With the credit crunch drying up traditional sources of funding, small-business owners who need cash are seeking alternatives.

The Contos family knows the bitter taste of the credit crunch.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

DreamWorks and Paramount finalize breakup

The deal, which ends a short and bitter relationship, gives the two studios joint custody of about 40 projects. Spielberg will form an independent studio backed by an Indian conglomerate.

Ending a short-lived and bitter relationship, DreamWorks SKG, the movie studio founded by Steven Spielberg, and Paramount Pictures said Sunday that a deal had been struck to part ways.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

How -- and why -- to develop a sense of urgency

Urgency isn't mere busy-ness but a state of mind that erases complacency, writes John P. Kotter. Such an attitude, he says, is essential for firms to be able to deal with change.

Back-to-back meetings, an exploding e-mail in box, an ever-longer working day and almost permanent jet lag -- this is the familiar world of today's frenetically busy executive.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

In D.C., few evade blame for financial crisis

Congress had a big hand in oversight failures and deregulation, in part through a philosophy of reducing government's role. Rep. Waxman begins hearings today.

When Congress voted last week to bail out Wall Street banks and investment houses, members were also indirectly voting to repair damage lawmakers themselves had caused during a decades-long era of deregulation.

Source: L.A. Times - Business | 6 Oct 2008 | 7:00 am

Germany clinches bank rescue deal

Germany's finance ministry has agreed a 50bn euro ($68bn; £38.7bn) plan to save one of the country's biggest banks.
Source: BBC News | Business | World Edition | 6 Oct 2008 | 6:59 am

Budget blowout won't stop Nats tax cuts, says Key

John Key has defended his party's planned program of tax cuts, after Treasury numbers released today showed the economic outlook has deteriorated badly since the May budget. The numbers have seen Treasury reducing its revenue forecasts...
Source: New Zealand Herald - Business | 6 Oct 2008 | 4:30 am

Fed moves to broker deal for Wachovia: sources (Reuters)

Reuters - The U.S. Federal Reserve is brokering discussions between Wells Fargo & Co and Citigroup Inc over which of the banks will buy Wachovia Corp's assets, people familiar with the matter said on Sunday.

Source: Yahoo! News: Business | 6 Oct 2008 | 4:24 am

Citigroup and Wells Fargo open talks

Citigroup and Wells Fargo have opened talks to resolve their bitter dispute over the takeover of a Wachovia in a move that could lead to a break-up of the sixth-largest lender in the US.
Source: FT.com - US homepage | 6 Oct 2008 | 4:08 am

NZ sharemarket dives on light volume

The New Zealand sharemarket tanked today on worries about so-called 'Main Street' rather than Wall Street. The NZX-50 index is down 101 points, or 3.3 per cent, to 3049. Brokers said the fall was on very low volume. Buyers had...
Source: New Zealand Herald - Business | 6 Oct 2008 | 4:00 am

Spring rise for Auckland house sales

One of Auckland's big real estate dealers says it has picked up on some spring optimism in the housing market. Barfoot & Thompson says it made 559 sales in September, compared with 502 in August. This is still well down on the...
Source: New Zealand Herald - Business | 6 Oct 2008 | 2:30 am

NZ directors paid half of those in Aussie - survey

Fees paid to board directors in New Zealand are about half those paid to directors in Australia, according to a survey by recruitment firm Sheffield. In 2007 the median base fee paid to New Zealand non-executive directors was $30,000...
Source: New Zealand Herald - Business | 6 Oct 2008 | 2:20 am

Politicians need to 'offer market some stability'

Politicians need to make it clear what they are going to do to help New Zealand survive the global credit crisis, the stock exchange boss said today. NZX chief executive Mark Weldon said politicians from all parties had been "appallingly...
Source: New Zealand Herald - Business | 6 Oct 2008 | 2:00 am

US stocks: 'Volatile' week ahead

Financial markets in the US face an uncertain and possibly volatile week as investors await details about how the Treasury Department will implement the government's financial rescue package - and watch for any further fallout from...
Source: New Zealand Herald - Business | 6 Oct 2008 | 1:45 am

Australian stocks: Market unable to shake gloom

The Australian share market has opened over one per cent lower today as Wall Street sentiment continues to be negative towards the US economy bailout package. The benchmark S&P/ASX200 was down 63.7 points, or 1.36 per cent, to...
Source: New Zealand Herald - Business | 6 Oct 2008 | 1:30 am

VCs 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 | 6 Oct 2008 | 12:23 am

AgResearch job cuts part of package to cut costs by $5 million

AgResearch is calling for voluntary redundancies as part of a range of measures being implemented to cut costs by $5 million this year. As a Crown Research Institute, AgResearch is required to return a profit but was barely able...
Source: New Zealand Herald - Business | 6 Oct 2008 | 12:06 am

Credit crunch throws US car dealers into crisis mode

NEW YORK - Hundreds of thousands of new cars and trucks that would have quickly made their way to people's driveways a year ago are now stacking up on dealer lots across the country, with potential buyers worried about whether they...
Source: New Zealand Herald - Business | 6 Oct 2008 | 12:00 am

Investors expect volatility as credit woes persist (AP)

AP - The world's financial markets face an uncertain and possibly volatile week as investors await details about how the Treasury will implement the government's financial rescue package — and watch for any further fallout from the credit crisis around the globe.

Source: Yahoo! News: Business | 5 Oct 2008 | 11:42 pm

UK electricity price four times more than France

British companies are being forced to pay over four times more for their electricity this winter than competitors in France and in excess of 70 per cent more than in Germany.
Source: Latest Business News from Times Online | 5 Oct 2008 | 11:00 pm

Bankers see valuation as potential turning point

Banks urged accounting chiefs to rush through new rules on valuing illiquid assets yesterday, calling it a key measure in stabilising financial markets.
Source: Latest Business News from Times Online | 5 Oct 2008 | 11:00 pm

City grandees shun banks seeking non-executive directors

Banks have joined tobacco and gaming companies as the least desirable destinations for non-executive directors, with City grandees fearing that involvement in the financial crisis will cost them their reputations.
Source: Latest Business News from Times Online | 5 Oct 2008 | 11:00 pm

German savings pledge raises stakes for Gordon Brown

An emergency plan to pump billions of pounds of taxpayers’ cash into Britain’s banks emerged yesterday as the global financial crisis deepened.
Source: Latest Business News from Times Online | 5 Oct 2008 | 11:00 pm

NZX keeps falling - down 2.8 pc despite US bailout passage

The New Zealand sharemarket was down on opening today after confirmation of the United States Government's US$700 billion ($1.05 trillion) bailout failed to rally international markets. The NZX-50 index is down 85 points, or 2.8...
Source: New Zealand Herald - Business | 5 Oct 2008 | 11:00 pm

Fed pressed to step up crisis action

The Federal Reserve and US Treasury were under increasing pressure to follow passage of the $700bn financial rescue plan with further measures to shock the ailing credit markets back to life
Source: FT.com - US homepage | 5 Oct 2008 | 10:55 pm

Lehman failed to convince Fed on survival plan

The US bank lobbied the Fed this summer to be given access to liquidity, but was unable to convince regulators, just two months before the Fed endorsed similar proposals from Goldman Sachs and Morgan Stanley
Source: FT.com - US homepage | 5 Oct 2008 | 10:30 pm

Credit market to price $500bn in bad deals

The credit derivatives markets will today set the price tag for settling up to $500bn of contracts related to Fannie Mae and Freddie Mac, the US mortgage lenders whose seizure by the US government had the unexpected knock-on effect of triggering defaults on derivatives deals
Source: FT.com - US homepage | 5 Oct 2008 | 5:55 pm