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IMF in 'severe downturn' warningThe global economic downturn is likely to worsen as the financial crisis continues, says the International Monetary Fund.Source: BBC News | Business | World Edition | 7 Oct 2008 | 1:00 pm IMF says rapid and decisive global action needed to stem crisisDecisive and aggressive action is needed from the world’s leading economies to head off the looming danger that the escalating financial crisis will spark a deep and severe global downturn, the International Monetary Fund (IMF) said today.Source: Latest Business News from Times Online | 7 Oct 2008 | 1:00 pm Markets climb in volatile tradeEuropean and Asian markets show volatility as worries persist over the strength of financial institutions.Source: BBC News | Business | World Edition | 7 Oct 2008 | 12:58 pm More ETF's Bite The Dust, Including Wal-Mart ETF (SAW, PUF, MYP, WSI, WMT)
The following ETF's are being liquidated:
The last trading day is listed as October 17, 2008 on the NYSE Arca in the ETF's. NYSE Arca will halt trading in the shares of the Funds before the open on October 20, 2008 and shares will be permanently gone after that.
This is actually of very little surprise. We listed that Wal-Mart
(NYSE: WMT) Supplier Index ETF as an example of ETF's gone wild. There are many
trading days where that ETF does not even trade. ETF's are great tools and great investment vehicles when they are properly matched to liquid index levels or to liquid baskets. But the more esoteric they become, the less liquid (and perhaps the less successful).
Jon C. Ogg Source: 24/7 Wall St. | 7 Oct 2008 | 12:56 pm Icesave savers warned on accountsIceland's government takes control of the country's second largest bank, Landsbanki, which owns Icesave in the UK.Source: BBC News | Business | World Edition | 7 Oct 2008 | 12:50 pm Cash-strapped AMD to spin off factoriesRead full story for latest details.Source: Business and financial news - CNNMoney.com | 7 Oct 2008 | 12:50 pm RBS plunges on funding fearsShares in Royal Bank of Scotland plunged on talk that it had approached the UK government about a capital injection, but defensive stocks helped the FTSE recover its poise after Monday's dizzying sell-off. Australia's rate cut helped sentiment in AsiaSource: FT.com - US homepage | 7 Oct 2008 | 12:48 pm Fed's Term Auction Facilities Lack Meat For Hungry Market
The Federal Reserve and other central banks released an updated schedule of all of the auctions it will hold this quarter under a special program to aid ailing banking institutions to revive credit markets. They will conduct auctions of 28-day credit through the term auction facility with $150 billion in each of the following auctions: October 20, November 17, and December 15. Two forward term auction facilities are now tentatively scheduled for November 10 and November 24. The important issue here is that these are large facilities but are very short-term in nature. This offers much less meat in the burger than what everyone was hoping for yesterday. We'll see if the Fed gets the message or if they will just stick with this. PIMCO's Bill Gross has called for overnight rates in the U.S. to be cut down to 1% from 2%. Stay tuned.
Jon C. Ogg Source: 24/7 Wall St. | 7 Oct 2008 | 12:41 pm UK banks in government funding talks as crisis gripsLONDON (Reuters) - Britain will hold more talks with banks this week over a possible multi-billion pound injection of public funds, an industry source said as the credit crisis tightened its grip on Europe's main financial center.Source: Reuters: Business News | 7 Oct 2008 | 12:39 pm Stock futures drop after Fed auction statement (Reuters)
Source: Yahoo! News: Business | 7 Oct 2008 | 12:37 pm Stock futures drop after Fed auction statementNEW YORK (Reuters) - Stock index futures fell on Tuesday after the U.S. Federal Reserve announced its fourth-quarter term auction schedule, unnerving investors who anxiously await signs of some coordinated response by global central banks to unfreeze the credit markets.Source: Reuters: Business News | 7 Oct 2008 | 12:37 pm Russia and Iceland move to stem banking crisisREYKJAVIK/LONDON (Reuters) - Iceland sought an emergency bailout from Russia on Tuesday and the Russians unveiled an aid package for their own banks in the latest piecemeal responses to the global financial crisis.Source: Reuters: Business News | 7 Oct 2008 | 12:37 pm London Markets: London shares shrug off bank sector weakness in see-saw sessioShares advanced in a volatile session in London on Tuesday as gains for defensive food producers such as Unilever and energy companies offset more worries about capital strength in the banking sector.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:37 pm CORRECT: Odds rise for coordinated, global rate cutsFears that ongoing financial turmoil could wreck the world’s banking system and worsen a global slump fuels speculation that major central banks are preparing to deliver a rare round of coordinated interest-rate cuts if conditions don’t improve.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:36 pm Russia and Iceland move to stem banking crisis (Reuters)
Source: Yahoo! News: Business | 7 Oct 2008 | 12:33 pm Iceland takes over second biggest bank, Russia hoversREYKJAVIK (Reuters) - Iceland took over its second largest bank, propped up a battered currency and said on Tuesday it hoped Russia would lend 4 billion euros ($5.44 billion) to help tackle a financial crisis threatening to overwhelm it.Source: Reuters: Business News | 7 Oct 2008 | 12:31 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:31 pm N Brown defies gloom with 20% profits riseN Brown, the home shopping company which specialises in clothes for fuller-figured women, has defied the misery clouding the high street with a 20 per cent rise in profits.Source: Latest Business News from Times Online | 7 Oct 2008 | 12:29 pm Bank of Israel: economy stable, banks strong; may buy more forexTEL AVIV (MarketWatch) -- The Bank of Israel on Tuesday said it's considering buying foreign currency while at the same time saying in a statement that "the Israeli economy is in good and stable condition" and able to weather the challenges it faces.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:27 pm Royale Discovery Lights Up Interest (ROYL)
After completing and testing the Starkey sand in the Andrus Island East well, it was flowing over 1,000,000 cubic ft. of natural gas per day. The company's entire revenues in the last quarter were only 4.711 million and its market cap even with the pop this morning is barely $30 million. As far as the depths and locations, the company noted that the well was drilled to 7,000 ft. and logged pay in two natural gas filled sands in the Nortinville formation at 3,350 ft. and 3,800 ft. The deeper Starkey Channel was penetrated at 6,500 ft. and encountered 26 ft. of high porosity and permeable natural gas filled sands. Shares are indicated up 15% pre-market at $3.61 on the find. So far only 3,900 shares have traded, but its average daily volume is about 330,000. Its 52-week trading range is $2.18 to $14.70.
Jon C. Ogg Source: 24/7 Wall St. | 7 Oct 2008 | 12:26 pm Futures Movers: Crude futures rebound, up more than 3% after Monday's dropCrude-oil futures bounce back, reclaiming roughtly half of the prior session's losses that left prices at an eight-month low.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:26 pm Indications: U.S. stock futures volatile after Monday's hammeringU.S. stock futures were volatile Tuesday after the slide from the previous session amid continued worries over the success of the $700 billion troubled asset buying plan, the turmoil in foreign institutions and a profit warning from Bank of America.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:26 pm Signs of hopeA possible Wall Street comeback loomed Tuesday as international markets showed signs of stability and reports indicated the Federal Reserve might try an unusual maneuver to ease the credit crisis.Source: Business and financial news - CNNMoney.com | 7 Oct 2008 | 12:25 pm Bank of America falls, div cut, results weighNEW YORK (MarketWatch) - Bank of America shares retreated 9% in pre-open trading Tuesday as investors pondered life with a smaller dividend and a worsening earnings outlook after the bank reported a surprising 68% drop in third quarter profit late Monday.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:25 pm Europe Markets: Shares in Europe swing higher in see-saw sessionShares advanced in a see-saw session in Europe on Tuesday, with a sharp rise in Volkswagen shares leading auto stocks higher and helping offset more losses for financials.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:25 pm AMD plans production venture with Abu Dhabi firmNEW YORK (MarketWatch) -- Advanced Micro Devices Inc. said Tuesday that it plans to spin off its manufacturing operations to a new joint venture, Foundry Co., with an Abu Dhabi investment firm.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:18 pm Jig-A-Loo's Popularity Continues - Product Now Available on HomeDepot.Com- Jig-A-Loo and Jig-A-Patch Now Available For Purchase Online- MONTREAL, Oct. 7 /PRNewswire/ -- Can't find Jig-A-Loo at your local hardware store? You can nowSource: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:18 pm Marine Products Corporation Plans to Announce Third Quarter 2008 Financial Results and Host a Conference Call on October 29, 2008ATLANTA, Oct. 7 /PRNewswire-FirstCall/ -- Marine Products Corporation (NYSE: MPX) announced today that it will release its financial results for the third quarter ended...Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:15 pm Star hedge fund crashes to earthSeptember was the worst month on record for hedge fund performance, but for one legendary player what's going on in the markets now must seem like its coming straight from the gates of hell.Source: Business and financial news - CNNMoney.com | 7 Oct 2008 | 12:11 pm RBA slashes rates by full point, says big move necessaryAustralia cuts its benchmark rate by a larger-than-expected full percentage point, citing disarray in global financial markets and mounting evidence of a sudden slowdown among the country's major trading partners.Source: MarketWatch.com - Top Stories | 7 Oct 2008 | 12:08 pm Mesa Air Group, Pilots Reach Tentative AgreementPHOENIX, Oct. 7 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA) and the pilot leadership, who are represented by the Air Line Pilots Association, Int'l (ALPA),Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:05 pm BofA shares drop close to 10 percent on capital raiseNEW YORK (Reuters) - Shares of Bank of America Corp fell almost 10 percent on Tuesday, a day after the bank said it would cut its dividend and raise $10 billion to offset rising loan losses.Source: Reuters: Business News | 7 Oct 2008 | 12:04 pm World stocks tick higher; Iceland pegs FXLONDON (Reuters) - World stocks ticked higher on Tuesday, a day after falling six percent to three-year lows, as Australia's surprisingly large interest rate cut raised speculation other countries may follow suit.Source: Reuters: Business News | 7 Oct 2008 | 12:02 pm Australia rate cut stuns, markets thirst for moreSYDNEY/TOKYO (Reuters) - Australia stunned markets with its steepest interest cut in 16 years Tuesday and investors expected that other central banks would follow suit in a coordinated move to combat the global credit crisis.Source: Reuters: Business News | 7 Oct 2008 | 12:02 pm World stocks tick higher; Iceland pegs FX (Reuters)
Source: Yahoo! News: Business | 7 Oct 2008 | 12:00 pm Looking for a Way OutAfter stormy Monday, will Tuesday be just as bad?Stocks in Europe have turned higher, and U.S. stock index futures are pointing to a modest recovery after a tumultuous day of trading on Monday, when stock markets around the world plunged. The Dow Jones industrial average fell as much as 800 points before trimming its losses to a decline of 369.88 points. Markets remain nervous as fears persist over the stability of the banking system. In response, the Federal Reserve is looking to pull new weapons out of its arsenal. The Fed is considering buying commercial paper, short-term debt that many companies use to finance their day-to-day operation, according to several reports. Yves Smith on Naked Capitalism is skeptical that this would be effective. “Once the Fed steps in as a major player (major is required to have any impact), how does the Fed wean the market of its support?” she asks. “Warm up the helicopters, and welcome to central planning.” Also today, the Federal Reserve Bank of New York is said to hold a meeting with banks and institutional investors about setting up an exchange or clearing house for credit default swaps. The idea would be to give greater transparency and oversight to the $55 trillion market, whose opaqueness and complexity have been a fertile breeding ground for fears. And the Fed is now widely expected to cut its benchmark interest rates, now at 2 percent, by a half point, possibly in conjunction with rate cuts by the European Central Bank, the Bank of England, and other central banks. Markets were buoyed a bit today by a surprise move by Australia to cut its benchmark interest rate by a full percentage point. But other than India’s no other major central bank followed. The stresses in the global financial system were evident today. Iceland nationalized its second-largest bank and said it was talks with Russia (Russia!) over a $5.4 billion loan. The British government is in talks with three of the country’s largest banks – Royal Bank of Scotland, Lloyds TSB, and Barclays, fresh off its purchase of Lehman Brothers’ U.S. operations -- over a possible public investment of $79 billion, Bloomberg News reports. Related Links Hit the Panic Button Why Lehman Wasn't Saved The End of Lehman Source: Portfolio.com: Top 5 | 7 Oct 2008 | 12:00 pm Spectrum K12 School Solutions, Inc. Secures 7.4 Million in Venture FundingSource: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm Vital Products, Inc. Signs Consulting Agreement With DLW Partners of TorontoCONCORD, Ontario, Oct. 7 /PRNewswire-FirstCall/ -- Vital Products, Inc. (OTC Bulletin Board: VTLP), a multi-channel innovator in the industrial packaging sector, announced today...Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm Christopher Cooke to Join Greenhill as Managing DirectorNEW YORK and LONDON, Oct. 7 /PRNewswire-FirstCall/ -- Greenhill & Co., Inc. (NYSE: GHL), a leading independent investment bank, announced today that Christopher Cooke will...Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm Marketo Rocks Lead Management Market With Record-Setting 20 New Customers in SeptemberEasiest-to-use marketing automation vendor thrives during financial crisis and lean economic times SAN MATEO, Calif., Oct. 7 /PRNewswire/ --Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm Florida Prepaid College Plan Annual Enrollment Begins Oct. 20Families With Plans Have Peace of Mind During Market Fluctuations TALLAHASSEE, Fla., Oct. 7 /PRNewswire/ -- There aren't many things in life that are guaranteed.Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm Pete Blanco, CFP, A Top New England Financial Hispanic Producer, Honored at Annual Chairman's Council Meeting~ Top MetLife and New England Financial managers and producers from across the enterprise gather for recognition with Chairman, President & CEO, C. Robert Henrikson ~ ...Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm 'How I Won $1 Million by Eating Breakfast'Winner of MONOPOLY(R) 2007 Game at McDonald's(R) plans to 'simply peel' again in 2008 OAK BROOK, Ill., Oct. 7 /PRNewswire/ -- When Ashley Berry of Humble, Texas ...Source: Infocious RSS raw feed - channel BNewsBusiness | 7 Oct 2008 | 12:00 pm Fixing AMD (AMD) By Breaking it
Ruiz managed to take AMD shares from $40 less than three years ago to $4. He did this by taking on $5 billion in debt when he bought graphic chip maker ATI. The acquisition was a bust and AMD took its focus away from competing with larger rival Intel (INTC). It tool all of AMD's resource to develop better chips and market them in an industry with cut-throat prices and low margins. For the last two years, AMD has been talking about getting rid of its capital intensive chip manufacturing system. Well, the company finally got around to it. AMD will spin-out its factory operations. According to the FT "AMD plans to create a new enterprise, initially called The Foundry Company, with Abu Dhabi’s Advanced Technology Investment Company (ATIC)." Abu Dhabi will help finance the new operation and may put in as much as $6 billion. Most important, AMD will get $700 million in cash and $1.2 billion of its debt will be transferred to the new entity. For reasons which no one will be able to fathom, Ruiz will be chairman of The Foundry Company. The shifting of assets and new capital coming into both the new company and the old one will not do anything to fix the central problem. AMD does not make chips which are viewed as competitive to Intel chips. Intel used AMD's stumble to gain an R&D advantage which will be extremely difficult for smaller to close. The old problem at AMD is the new problem as well....leadership. Douglas A. McIntyre Source: 24/7 Wall St. | 7 Oct 2008 | 11:54 am Russia lends banks $37bn to stem crisisRussia said it would pump $37bn in long-term subordinated loans into state-controlled banks in an effort to fight off a deepening financial crisis that has seen the steepest losses ever on the Russian stock exchangeSource: FT.com - US homepage | 7 Oct 2008 | 11:50 am EU moves to reassure bank saversEuropean Union finance ministers agree to increase the guarantee for customers' bank savings accounts to at least 50,000 euros.Source: BBC News | Business | World Edition | 7 Oct 2008 | 11:49 am Oil rises to $91 after steep slideLONDON (Reuters) - Oil rose by $3 a barrel on Tuesday after a large interest rate cut in Australia raised hopes that other policymakers would follow suit to bolster economic growth, a move that would support oil demand.Source: Reuters: Business News | 7 Oct 2008 | 11:48 am Facing holiday Wii shortageSource: Business and financial news - CNNMoney.com | 7 Oct 2008 | 11:46 am Top Pre-Market Analyst Upgrades (FCX, INCY, JEF, LPX, TU, WBS)Below are some of the top early bird analyst upgrades we have seen early this morning with more than two hours to the open:
Jon C. Ogg Source: 24/7 Wall St. | 7 Oct 2008 | 11:40 am Top Pre-Market Analyst Downgrades (AAV, AMLN, CEPH, TV, VE)Below are some of the top early bird analyst downgrades we have seen early this morning with more than two hours to the open:
Jon C. Ogg Source: 24/7 Wall St. | 7 Oct 2008 | 11:38 am 4 Tips: Smart Money Moves for a Down Economy (Consumer Action)Use these four tips to bolster your finances during tough economic times.Source: SmartMoney.com | 7 Oct 2008 | 11:30 am Goldman Sachs Cuts Solar Stock Benchmarks (FSLR, SPWRA, CSIQ, LDK))
It seems all of the talk of a solar supply being in over-supply by 2010 may be making Goldman Sachs rethink some of the long-term models. The current credit market is also going to make the financing of new solar projects a tighter issue than before, even when you consider the tax credit renewals that are being put into law to include utilities for the first time. SunPower shares are not indicated down that much, and its recent ticker change from "SPWR" may have traders not looking at it so much. But First Solar shares are being given roughly a $10.00 haircut to under $150.00 and its 52-week trading range is $124.96 to $317.00. Goldman Sachs does not follow many of the other solar stocks, but companies such as Canadian Solar Inc. (NASDAQ: CSIQ) and LDK Solar (NYSE: LDK) are possibly going to be down in sympathy with the call even if they aren't a part of the research call. Jon C. Ogg Source: 24/7 Wall St. | 7 Oct 2008 | 11:27 am European shares see-saw, banks weakEuropean stocks swung wildy in volatile trade on Tuesday as fears that banks need additional funding sent financial stocks tumbling. After its biggest drop since 1987, the FTSE Eurofirst 300 climbed back...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 11:23 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 | 7 Oct 2008 | 11:19 am Europe Tries to Bolster Banking SystemOfficials have offered a tapestry of measures designed to restore confidence in battered financial markets.Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 11:19 am European Stocks Rise Slightly; Asian Shares MixedStocks wavered in Europe, a day after their worst decline in 21 years, amid expectations that central banks were poised to implement coordinated interest rate cuts.Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 11:08 am A&L fined record £7 million for mis-sellingThe Financial Services Authority has fined Alliance & Leicester (A&L) a record-breaking £7 million for mis-selling 210,000 payment protection insurance (PPI) policies.Source: Latest Business News from Times Online | 7 Oct 2008 | 11:03 am Banks' share prices fall sharplyBanking shares fall sharply in London amid news that bank bosses held funding talks with the government.Source: BBC News | Business | World Edition | 7 Oct 2008 | 11:03 am Consumer Walked Out On Economy In September (MA)
According to Reuters, the Mastercard Advisors service reported that "Overall September apparel sales fell 5.5 percent from a year ago, with women's apparel down 9.1 percent. Furniture sales sank 13.3 percent, the worst decline since 2003, while electronics and appliance sales tumbled 13.8 percent." Douglas A. McIntyre Source: 24/7 Wall St. | 7 Oct 2008 | 11:01 am RBS plunges on funding fearsBanks were once again under pressure in London on Tuesday amid worries about the health of the financial sector but the broader market stabilised following the record sell-off in the previous session...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 11:00 am Iceland nationalises LandsbankiIceland's second largest bank was nationalised as the beleaguered country used new powers that allow it to seize control of public companies in the financial services sectorSource: FT.com - US homepage | 7 Oct 2008 | 10:56 am Iceland nationalises LandsbankiLandsbanki, Iceland's second largest bank, was nationalised on Tuesday as the country used new powers that allow it to seize control of public companies in the financial services sector.The Icelandic Financial...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 10:56 am Playing it safeHow Japan sidesteps fallout from economic crisisSource: BBC News | Business | World Edition | 7 Oct 2008 | 10:56 am Many Money Markets Yet to Apply for Insurance (Ticked Off)Many money markets have yet to enroll in Treasury's insurance program.Source: SmartMoney.com | 7 Oct 2008 | 10:50 am German automakers cut backSource: Business and financial news - CNNMoney.com | 7 Oct 2008 | 10:41 am eBay trims 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 | 7 Oct 2008 | 10:36 am Yell secures renegotiation of debt covenantsYell, the publisher of Yellow Pages, said this morning that it had managed to renegotiate its bank covenants but will pay higher interest on its debt facilities.Source: Latest Business News from Times Online | 7 Oct 2008 | 10:29 am Australian dollar rises after surprise rate cutThe Australian dollar eked out gains on Tuesday after the Reserve Bank of Australia slashed interest rates by 100 basis points, double the amount expected. The RBA's interest rate reduction to 6 per cent...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 10:16 am Egypt key stock index falls 16.4% (AFP)
Source: Yahoo! News: Business | 7 Oct 2008 | 10:15 am Big Oil Can Dodge Anything
Some of the share prices for companies in the industry are already in sharp decline. According to The Wall Street Journal, "The stock drops are driven by concerns that a world-wide recession will bring an end to the high oil prices that have been the primary driver behind these companies' record earnings." But, earnings are relative, and so are balance sheets. Oil companies are in more than one business. High crude prices hurt the refining margins of many of these operations because those prices cannot be passed along to consumers and businesses without killing demand. A moderation down to $60 or $70 a barrel might help that. As the stock market continues to drop, the real question is where investors can find more value and safety than in large oil production and refining companies. Exxon has almost $40 billion in cash and made $23 billion in operating profits on $138 billion in revenue during the last question. Even if those earnings were cut in half, the firm is a cash machine almost without equal. Exxon has a 2% yield, and it is hard to imagine that will be threatened at any time in the foreseeable future. Oil prices may be dropping and the industry may have more modest margins, but they will only be returning to the historically normal levels. What other public company's can boast those kinds of benefits? Douglas A. McIntyre Source: 24/7 Wall St. | 7 Oct 2008 | 10:14 am Falls halt Russian market tradingRussia's two leading stock exchanges are forced to close for several hours, a day after suffering huge index falls.Source: BBC News | Business | World Edition | 7 Oct 2008 | 10:07 am Fed should cut rates to 1 percent: Pimco's GrossLONDON (Reuters) - Influential investor Bill Gross called on Tuesday for the Federal Reserve to cut interest rates to 1 percent from the current 2 percent because of sharp falls in asset prices globally.Source: Reuters: Business News | 7 Oct 2008 | 10:00 am Oil prices recover above $90 a barrelCommodities markets steadied on Tuesday after sharp falls in the previous session as the ongoing storm sweeping global financial markets showed no sign of abating. Gold prices continued to rise amid elevated...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 9:57 am Fed laws could involve big changes in US bank systemThe reform planning has been given increased urgency due to the collapse of the Franklin NationalSource: Latest Business News from Times Online | 7 Oct 2008 | 9:57 am The Fed Movest To Bailout The Local Convenience Store
The latest installment in the agency's heroics is a program for to buy commercial paper from non-financial companies and municipalities. It they default, the Fed might own the local fire and police departments with liens on their guns and hoses. It will not get that bad. What is being contemplated is that Bernanke would buy commercial paper and take it unsecured, a fabulously huge risk to the federal government and taxpayers. Now that the the Fed has decided to save the economy, it might as well go whole hog. According to The New York Times, "Under its plan, the central bank would buy unsecured commercial paper, essentially short-term i.o.u.’s issued by banks, businesses and municipalities." The US GDP is about $14 trillion. For the Fed to do much to help a system that large, its investment in commercial paper would have to move into the hundreds of billion of dollars. It would essentially be matching the Treasury's $700 billion bank bailout with a program of similar size for the province of business. All of this makes some nominal sense but it leads down a terrible path. By the middle of next year, the federal government may have poured $1.5 trillion into the economy and have little or nothing to show for it. Since these measures have never been tried before, no one knows if they will work. Douglas A. McIntyre Source: 24/7 Wall St. | 7 Oct 2008 | 9:56 am Rogue trader pins crisis on banksFormer rogue trader Nick Leeson pins the blame for the current financial crisis on banks and government.Source: BBC News | Business | World Edition | 7 Oct 2008 | 9:48 am Divided opinions on the prospects for AmericaThe economic news in the United States is getting worse daily - unless you belong to the school of thought arguing that a deep recession is the only...Source: Latest Business News from Times Online | 7 Oct 2008 | 9:47 am Midland in rescue consortium as Franklin is declared insolventThe biggest bank failure in American historySource: Latest Business News from Times Online | 7 Oct 2008 | 9:44 am UK economy 'already in recession'Britain is already in a recession, which is worsening and requires urgent action, business leaders warn in a quarterly survey.Source: BBC News | Business | World Edition | 7 Oct 2008 | 9:40 am Gas prices expected to fall furtherIf there's one bright spot in a bad economy, it's that gasoline prices have fallen, and they're expected to drop even further.Source: Business and financial news - CNNMoney.com | 7 Oct 2008 | 9:37 am Robert PestonIt's certainly looking hairy on the marketsSource: BBC News | Business | World Edition | 7 Oct 2008 | 9:17 am Green vows to 'try harder' as Bhs profits fallProfits at the Bhs store chain fell by more than a third in the year to end March, the retailer said on Tuesday, and its sales trend has worsened since.Sir Philip Green, the billionaire who also controls...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 8:55 am UK savings frozen after Landsbanki goes bustBritish savers have been blocked from withdrawing funds from Icesave, the internet savings bank that is owned by Landsbanki, after Iceland’s financial regulator took control of the country's second largest bank .Source: Latest Business News from Times Online | 7 Oct 2008 | 8:47 am Stocks Waver in Europe; Asian Shares MixedStocks wavered Tuesday in Europe, a day after their worst decline in 21 years, amid expectations that central banks were poised to implement coordinated interest rate cuts.Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 8:42 am Tax rules on borrowing from subsidiaries eased (Reuters)Reuters - Regulators last week relaxed a rule allowing U.S. companies to borrow from their foreign subsidiaries, without triggering a 35 percent corporate income tax, in a move ease access to capital.Source: Yahoo! News: Business | 7 Oct 2008 | 8:04 am S.Korea plays down crisis as won hits 7-yr lowSEOUL (Reuters) - South Korea's president played down talk of a currency crisis similar to one that nearly broke the economy 10 years ago, seeking to assure investors even as the won slumped to a 7-1/2-year low on fears global financial turmoil might drag down the country's banks.Source: Reuters: Business News | 7 Oct 2008 | 7:24 am S.Korea plays down crisis as won hits 7-yr low (Reuters)Reuters - South Korea's president played down talk of a currency crisis similar to one that nearly broke the economy 10 years ago, seeking to assure investors even as the won slumped to a 7-1/2-year low on fears global financial turmoil might drag down the country's banks.Source: Yahoo! News: Business | 7 Oct 2008 | 7:24 am Yell renegotiates debt paymentsYell, the highly geared UK directories company, on Tuesday said it had successfully renegotiated its covenants following talks with its lending syndicate.Confirmation of the debt agreement helped lift...Source: Infocious RSS raw feed - channel BNPaperBusiness | 7 Oct 2008 | 7:08 am Falling oil prices could prove a blessing or a curse to automakersWhen fuel costs were soaring, firms retooled their lineups to emphasize small and efficient vehicles. If prices continue declining, they could be unprepared for renewed demand for SUVs and trucks.The slumping price of oil has given carmakers a real head scratcher: Is this good or bad news? Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Fears of global recession deepen as stock markets plungePlummeting stock markets indicate limits to government's power to help. The Dow falls below 10,000.The collapse of stock markets worldwide Monday reflects deepening concerns that government intervention won't be enough to stave off a potentially severe global recession. Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Is now a good time to panic?If you're at the point where you aren't sure you can take any more of this, you have plenty of company. Worldwide.Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am EBay to cut 10% of workforce, buy 3 firms for $1.3 billion; shares slideThe online auction firm plans to lay off about 1,000 full-time employees and as many as 600 temporary workers as it purchases Web credit company Bill Me Later and two Danish classifieds sites.Online retailer EBay Inc., which is trying to reverse years of slowing growth in its auction business amid rising competition and a spreading financial crisis, said Monday that it would cut 10% of its global workforce even as it spends $1.3 billion to buy three Web businesses. Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Stock markets around globe plunge as bank woes deepenSome indexes see their steepest drops in 20 years as countries struggle to keep their own banks from failing.International stock markets hemorrhaged hundreds of billions of dollars Monday as countries around the world scrambled to save their own banks and bolster whatever investor confidence remained. Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Marvel will film superhero sagas at Raleigh Studios in Manhattan BeachIn welcome news for the sluggish local film production economy, Marvel Studios has reached an agreement to film four of its superhero movies at Raleigh Studios in Manhattan Beach.Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Little joy at slide in gasolineDropping oil prices could break $60 a barrel, an analyst says. That helps motorists, but the weakening economy is creating bigger problems.With stocks getting hammered and banks needing bailouts, consumers still had something to celebrate Monday. Pump prices are sliding and soon may drop below $3 a gallon nationally, pulled down by an oil-price crash that could take crude as low as $60 a barrel by the end of the year, an analyst said. Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Lehman Bros. chief executive faces lawmakersRep. Henry Waxman grills Richard Fuld about compensation he received as the 158-year-old investment bank foundered.Just days before Lehman Bros. Holding Inc. filed for bankruptcy protection last month, the company sought $23.2 million in "special payments" for three outgoing executives, according to internal documents released by a congressional committee Monday. Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am Judge says Broadcom's Henry Nicholas should get jet backThe private plane was seized by prosecutors pursuing civil charges against the embattled Broadcom Corp. co-founder.The last two years haven't been easy for Broadcom billionaire Henry T. Nicholas III. Source: L.A. Times - Business | 7 Oct 2008 | 7:00 am RBS shares fall under £1 on bailout fearsShares in Royal Bank of Scotland (RBS) plunged by more than 35 per cent today to less than £1 on fears that a £50 billion bailout of high street banks would result in a partial nationalisation of several household names.Source: Latest Business News from Times Online | 7 Oct 2008 | 6:56 am Currency: Dollar volatile after surprise Aussie rate cutA surprisingly large interest rate cut across the Tasman helped the New Zealand dollar recover from a two-year low, as the market seized on any positive news amid global gloom. The Reserve Bank of Australia's 100-basis point cash...Source: New Zealand Herald - Business | 7 Oct 2008 | 5:58 am September consumer sales drop sharply: MasterCard (Reuters)Reuters - U.S. shoppers worried by shrinking bank and retirement accounts tamped down spending across the board in September as the country's financial crisis worsened, MasterCard Advisors said in a report on Tuesday.Source: Yahoo! News: Business | 7 Oct 2008 | 4:23 am Bush administration cranks up bailout programA temporary chief is named for the new Office of Financial Stability and institutions are invited to bid to manage the portfolios the government will buy.The Bush administration took its first steps Monday to implement the $700-billion bailout for the financial system, tapping a Treasury Department official to lead efforts to buy securities tied to troubled loans and soliciting applications from financial institutions to manage the portfolios. Source: L.A. Times - Business | 7 Oct 2008 | 3:33 am Latest updates: Financial Turmoil16.51-SYDNEY: The Reserve Bank of Australia (RBA) has cut the cash rate by massive 100 basis points, to six per cent, after its board meeting today. The move by the central bank was bigger than the 50 basis point fall economists...Source: New Zealand Herald - Business | 7 Oct 2008 | 3:00 am Cadbury offloads Mother Earth brandCadbury has sold the brand and assets of Mother Earth snack foods to Hamilton-based company Prolife Foods Ltd for an undisclosed sum. The buyer said it plans to expand Mother Earth's existing range and "take the brand into new...Source: New Zealand Herald - Business | 7 Oct 2008 | 2:30 am NZX hits three-year low after another Wall St slumpBrokers are nervously looking towards the opening of other markets in the Asia Pacific region after yet another miserable session in US and European markets sent the NZX-50 to a three year low. The benchmark NZX-50 index plunged...Source: New Zealand Herald - Business | 7 Oct 2008 | 2:00 am Boss of bankrupt bank reveals $550m salaryWASHINGTON - The now-bankrupt investment bank Lehman Brothers arranged millions in bonuses for fired executives as it pleaded for a federal lifeline, lawmakers learned, as Congress began investigating what went so wrong on Wall Street...Source: New Zealand Herald - Business | 7 Oct 2008 | 1:30 am The global meltdown - how it is affecting usThe New Zealand dollar fell to a two-year low of US62c overnight as global markets slumped as much as 9 per cent and appetites for risky commodity driven currencies such as ours and Australia's evaporated. The New Zealand stock...Source: New Zealand Herald - Business | 7 Oct 2008 | 1:00 am Business Briefs - MondayEli Lilly buys ImClone for $6.5 bil. The biotech rose after Eli Lilly LLY said it will pay $70 per share to buy the company. ImClone Systems IMCL...Source: Investor's Business Daily: BUSINESS | 7 Oct 2008 | 12:50 am Trends & Innovations - MondayGamers don't play to stereotypesSource: Investor's Business Daily: BUSINESS | 7 Oct 2008 | 12:50 am Chain Of Upscale Sandwich Shops Holds Steady In Rough TimesDiesel and dough aren't as cheap as they used to be. That translates into more expensive loafs of focaccia bread and chicken panini sandwiches.Source: Investor's Business Daily: BUSINESS | 7 Oct 2008 | 12:50 am In Brief - MondayCeradyne (CRDN), a maker of ceramics for military armor, said it won a five-year, $2.37 bil contract for its personal ceramic armor plates from...Source: Investor's Business Daily: BUSINESS | 7 Oct 2008 | 12:50 am Fletchers bids for Australian steel companyFletcher Building has entered a conditional agreement to buy Fielders Australia Pty Ltd. Fielders is owned by Hills Industries Ltd (60 per cent) and FSR Investments Pty Ltd (40 per cent). The conditions include due diligence,...Source: New Zealand Herald - Business | 7 Oct 2008 | 12:20 am BofA earnings tumble, cuts dividend (Reuters)
Source: Yahoo! News: Business | 6 Oct 2008 | 11:40 pm Brookings's Baily Says Crisis Will Take `Several Years' to PassSource: Bloomberg - All Podcasts | 6 Oct 2008 | 11:30 pm Paul Krugman Sees U.S. Economy's Downturn `Accelerating'Source: Bloomberg - All Podcasts | 6 Oct 2008 | 11:23 pm Brandeis's Mann Says U.S. Needs to Recapitalize BanksSource: Bloomberg - All Podcasts | 6 Oct 2008 | 11:21 pm Fed to hold CDS clearance talksBanks are hoarding cash in expectation of pay-outs on up to $400bn of defaulted credit derivatives linked to Lehman Brothers and other institutions, according to analysts and dealersSource: FT.com - US homepage | 6 Oct 2008 | 11:20 pm Value of trades on NZX fell in Q3The total value of trades on the NZX fell 14 per cent to $7.94 billion in the last quarter. The total number of trades was unchanged from the same period last year at 161,393 with an average daily value traded of $120 million,...Source: New Zealand Herald - Business | 6 Oct 2008 | 11:15 pm Varvares Says NABE Sees Better Housing Market in 2009Source: Bloomberg - All Podcasts | 6 Oct 2008 | 11:08 pm BofA to raise $10bn in capitalBank of America, the largest US bank, said it would raise $10bn in capital and halve its dividend in an effort to ride out the credit crisisSource: FT.com - US homepage | 6 Oct 2008 | 11:07 pm Doctors must stop squabbling over the patientAn experienced and very senior figure in global central banking, someone not given to alarmist observations about the customarily prosaic business of his profession, described the state of the world's financial system to me over the weekend as like that of a patient who has experienced multiple organ failure.Source: Latest Business News from Times Online | 6 Oct 2008 | 11:00 pm AIG's complexity blamed for fallThree former chief executives of AIG will testify in US Congress on Tuesday about the events that forced the government to de facto nationalise the company last monthSource: FT.com - US homepage | 6 Oct 2008 | 10:31 pm VIX Index of U.S. Stock Option Prices Advances 15.3% to 52.05Source: Bloomberg - All Podcasts | 6 Oct 2008 | 10:21 pm WJB Capital's Fullman Says Options Can Repair a PortfolioSource: Bloomberg - All Podcasts | 6 Oct 2008 | 10:17 pm Citi and Wachovia in legal truceCitigroup and Wells Fargo agreed a truce until lunchtime on Wednesday in their bitter legal battle over the takeover of Wachovia, in an effort to gain more time to agree a deal to carve up the US's sixth-largest bankSource: FT.com - US homepage | 6 Oct 2008 | 10:04 pm Oil falls under US$90Oil prices plunged below US$90 a barrel this morning, coming within reach of year-ago levels as a widening financial maelstrom spreads overseas and crimps global demand for energy. A barrel of oil has not been this cheap in eight...Source: New Zealand Herald - Business | 6 Oct 2008 | 9:30 pm 5 Tips: Navigating Today's Troubled Markets (Consumer Action)Feeling panicky? Take some deep breaths and follow this advice.Source: SmartMoney.com | 6 Oct 2008 | 9:25 pm Currency: Kiwi slumps to two-year lowThe NZ dollar slumped to a two-year low against the US dollar overnight following "carnage" in international markets. The strong US dollar saw the NZ dollar fall to US62.03c at 8am today from US65.15c at 5pm last night. The...Source: New Zealand Herald - Business | 6 Oct 2008 | 9:25 pm Actor Tim Robbins, Cartoonist Roz Chast, Tate Shows RothkoSource: Bloomberg - All Podcasts | 6 Oct 2008 | 9:16 pm Bank of America to slash mortgage paymentsA plan announced today by Bank of America will be the most aggressive foreclosure prevention effort ever undertaken by a U.S. bank.Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 8:54 pm Obama lead forces McCain on to attackAn increasingly frantic Republican party, which has watched Barack Obama restore a strong lead, has indicated that it plans to "take off the gloves" – in the words of Sarah Palin – by questioning Mr Obama's patriotismSource: FT.com - US homepage | 6 Oct 2008 | 8:42 pm Credit squeeze: SBA loans drop 30%A growing number of businesses are struggling to land loans through the Small Business Administration's flagship lending program. The number of 7(a) loans given in the 2008 fiscal year, which ended Sept. 30, dropped 30% from 2007, the SBA reported last week.Source: Business and financial news - CNNMoney.com | 6 Oct 2008 | 8:32 pm ETFs Record Big Drop as Trouble Spreads to Europe (Daily ETF Wrap-Up)ETFs experience big selloff as global credit crisis spreads to European banks.Source: SmartMoney.com | 6 Oct 2008 | 8:30 pm Bloodbath Is Just Starting for Muni-Bond Defaults: CommentarySource: Bloomberg - All Podcasts | 6 Oct 2008 | 8:30 pm RBC's Cassidy Says Government Crisis Response May `Backfire'Source: Bloomberg - All Podcasts | 6 Oct 2008 | 8:25 pm Portales's Peabody Sees Bank Merger Potential in MidwestSource: Bloomberg - All Podcasts | 6 Oct 2008 | 8:19 pm Below 10,000A global selloff sent the Dow tumbling back below a benchmark it first eclipsed in March 1999.Source: SmartMoney.com | 6 Oct 2008 | 8:15 pm Fuld says Lehman victim of short sellersDick Fuld blames the group's collapse on a plague of naked short selling and says he would go to his grave wondering why the US government opted to save AIG but allowed the bank to failSource: FT.com - US homepage | 6 Oct 2008 | 7:48 pm 3 Safe Harbors for Your Cash (Ticked Off)The stock market upheaval has many investors seeking shelter from the financial storm.Source: SmartMoney.com | 6 Oct 2008 | 7:41 pm Financial Crisis Spreads to Europe, Beyond (Pundit Watch)Proving it's a small world after all, financial mayhem spreads to Europe, beyond.Source: SmartMoney.com | 6 Oct 2008 | 7:30 pm 3 Open Enrollment Tips (SmartMoney Magazine)Health care costs are rising (again). Here's how to get the most out of your 2009 benefits.Source: SmartMoney.com | 6 Oct 2008 | 7:05 pm What's Wachovia Worth?There has perhaps been no more mysterious or anomalous banking transaction in recent history than the sale of Wachovia Bank. Its fate remains up in the air as of this writing: Citigroup has sued Wachovia, its board, and rival suitor Wells Fargo, but the parties have agreed to put their litigation temporarily on hold as they try to reach a compromise. (Karen Donovan looks at the litigation here.)But hedge fund manager Bill Ackman isn't one to let a lack of disclosure keep him from capitalizing on it. Speaking before a group of investors at the Value Investing Congress today, the Pershing Square Capital manager walked through his reasoning for buying 180 million shares of the bank seven days ago after it announced it would sell most of itself to Citigroup for $2.1 billion in stock. What it boils down to is the basic tenet of value investing: Wachovia's shares were trading at a level significantly below what Ackman believes the sum of its parts was worth. In fact, if Ackman's math is right, they still look cheap, even after the stock rose on Friday following Wells Fargo's unexpected announcement to buy the entirety of Wachovia Bank. (Felix Salmon wonders why.) Given that Wachovia never filed the requisite 8-K with the Securities and Exchange Commission after the Citigroup announcement last Monday, Ackman and his team quickly began pulling together their own best guess of what the remaining parts of Wachovia—which included its retail brokerages like its A.G. Edwards unit, the asset management arm Evergreen, and an insurance subsidiary—were worth. His conclusion? The shares, which traded as low as $1.84 last Monday, were worth somewhere between $7.29 and $19.59 in Ackman's estimation. (The biggest unknown factor is Wachovia's cash balance, which was at $22 billion as of June 30. The low end of his valuation range assumes a $2 billion cash balance.) In a surprise move, Wells Fargo swept in on Friday with plans to buy the entirety of Wachovia for $6.88 per share, still below what Ackman believes the parts that Citigroup rejected were worth. Ackman believes that, given the skittishness in the overall market, the fate of Wachovia will have to be resolved quickly. He advocates for the company to be sold in two separate parts instead of as one whole company as Wells Fargo has proposed. If Citigroup prevails as the buyer of the commercial bank, Ackman believes that what's left would be a great buy for a bank like Morgan Stanley or Goldman Sachs. He can even imagine Berkshire Hathaway scooping it up as an "ideal investment vehicle." Ackman did sell 9.5 million shares on Friday after the Wells Fargo announcement, but he is still one of the largest shareholders of Wachovia with his remaining stake. He's pleased that a bidding war has developed over the bank, but it's not an outcome he necessarily predicted when he made his investment last week. Shares of Wachovia were briefly halted during Ackman's speech, which got the crowd buzzing on their BlackBerrys. Just as with everything else connected to this Wachovia sale, no explanation was provided when trading resumed. Related Links The Bank Heist Citi Slickers Did Citi Question its Wachovia Deal? Source: Portfolio.com: Top 5 | 6 Oct 2008 | 7:00 pm Radiohead, Billy Bragg, Others Join to Demand Fair TreatmentA group of British recording artists including Radiohead, The Verve and Iron Maiden say the digital music revolution has come up short in terms of the fair treatment of artists, citing an agreement between record labels, ISPs and the British government as an example of artists' viewpoints being ignored. To make sure their priorities are taken into account in the future, over sixty British artists have joined the Featured Artists Coalition."It is time for artists to have a strong collective voice to stand up for their interests," stated Brian Message of Courtyard Management, which manages Radiohead and Kate Nash. "The digital landscape is changing fast and new deals are being struck all the time, but all too often without reference to the people who actually make the music. Just look at the recent [agreement] on file-sharing between labels, government and the ISPs. Artists were not involved. The Featured Artists' Coalition will help all artists, young and old, well-known or not, drive overdue change through the industry in their interests and those of fans." Artists stand as much or more to lose than other elements of the music industry if anti-fan policies gradually drive people away from thinking of music as an art form that's important in its own right and not just as a way to sell body spray or enhance videos. It only makes sense that they should have a say when policies are enacted to restrict music from being shared online, among other important decisions. The organization set itself three primary goals for its campaigning: artists should retain "ultimate ownership" of their music, agreements between artists and others should be made in a "fair and transparent manner" and copyright holders (i.e. record labels) must keep artists' interests in mind and must explain how any agreement could change the ways in which their creations are exploited. Part of the problem, according to Damon Gough (a.k.a. Badly Drawn Boy), is that many of the institutions that have traditionally represented artists are crumbling. "I think with the digital age and record companies dispersing and disbanding, young bands need a governing voice that will support them and help protect their work," he told The Guardian. Radiohead and the other artists who have signed the charter will apparently have a hand in running the organization. "The Featured Artists' Coalition is an organization for artists, which will be run by artists," stated The Verve manager Jazz Summers. "It will ensure that in future the voice of artists is properly heard in discussions with music and technology companies, trade organizations and most importantly, with Government... Digital technology gives artists the opportunity to control their future -- this is the time to seize that opportunity." Perhaps US-based artists could find reason to follow suit. With new revenue models such as the equity-sharing deals behind MySpace Music offering artists within and without the major label system the opportunity to be taken advantage of in entirely new ways, such oversight could be a welcome on these shores as well. Related LinksMySpace Music Delayed; Holdout EMI Set To Join Music Sales Grow, Music Industry Shrinks Battle Hymn Source: Portfolio.com: Top 5 | 6 Oct 2008 | 7:00 pm Hope comes to struggling YoungstownAmy Scott visits Youngstown, Ohio, which is known to have the highest foreclosure rate in the U.S., in our continuing series, "Road to Ruin?" Amy learns GM's plans to make the new Cruze automobile nearby is giving the city some hope.Source: Marketplace | 6 Oct 2008 | 6:40 pm Denver voters and the federal bailoutTess Vigeland spent the weekend in Denver working on "Road to Ruin?" our series on how Americans are faring. Colorado is one of the big swing states, and she asks if the economy will affect how people vote.Source: Marketplace | 6 Oct 2008 | 6:38 pm Home price cuts for Coldwell fire saleColdwell Banker Real Estate is planning to slash home prices up to 10% across the nation, based on agreements with home sellers, to try to boost slumping sales. Janet Babin has more.Source: Marketplace | 6 Oct 2008 | 6:30 pm Lehman's fall set off market bonfiresLehman Brothers was so interconnected within the financial sector that when it failed, experts tell reporter Nancy Marshall Genzer, markets and financial institutions faced huge losses.Source: Marketplace | 6 Oct 2008 | 6:26 pm Fear sends global markets reelingThe word of the day for the state of the global stock markets was "disarray," European Bureau Chief Stephen Beard tells host Kai Ryssdal. Doubt over the U.S. government rescue plan sent markets plummeting worldwide.Source: Marketplace | 6 Oct 2008 | 6:07 pm Dow Fishes for a Bottom After Breaching 10000 (Ticked Off)After dipping below 10,000, finding a floor for the industrial average becomes trickier.Source: SmartMoney.com | 6 Oct 2008 | 6:04 pm Fed's eyes foray into unsecured loansThe Federal Reserve is working with the US Treasury on plans for a dramatic move into unsecured lending in the hope that this extreme step could help bring credit markets back to lifeSource: FT.com - US homepage | 6 Oct 2008 | 5:56 pm Markets react negatively to bailout paceStocks take another dive, as markets show their impatience and lack of confidence in the financial bailout measures to be taken by the Treasury. Washington Bureau Chief John Dimsdale asked financial experts what's going on.Source: Marketplace | 6 Oct 2008 | 5:54 pm Main Street gets government help tooBailout supporters took a lot of heat for handing that cash over to Wall Street. But commentator and economist Andrew Samwick argues it's actually Main Street that's usually on the receiving end of government help.Source: Marketplace | 6 Oct 2008 | 5:38 pm Fuld as Fall GuyWASHINGTON— The ink was barely dry on the economic rescue bill when Congress began hauling disgraced financiers up to Capitol Hill to grill them on why and how everything went so wrong. First up on the dock was Richard Fuld, who presided over the rise and fall of Lehman Brothers. It was the first public appearance by Fuld since Lehman filed for bankruptcy protection on September 15. Appearing alone before the House Committee on Oversight and Government Reform, Fuld said: "I take full responsibility for the decisions I made and the actions I took. Based on the information I had they were prudent and appropriate." As Fuld sat at the witness table, two pink t-shirt clad women tried to hold up handwritten signs – one said “Shame” – before they were ushered out by Capitol police. The Lehman C.E.O. answered—slowly and haltingly—angry lawmakers' questions, Some of the most dramatic moments of the hearing came when Fuld was asked why Lehman was alone in the Wall Street firms that did not get a government rescue. The questioning began with Henry Waxman, chairman of the House Committee on Oversight and Government Reform, who produced a chart showing that Fuld received $484.8 million in compensation between 2000 and 2007. Related Links The End of Lehman Lehman Bailout? Just Say No Welcome to the Impasse Source: Portfolio.com: Top 5 | 6 Oct 2008 | 4:00 pm Prune Losers From Portfolio to Survive Crisis (Tradecraft)Prune losers, preserve winners and pray for the return of rationality to markets.Source: SmartMoney.com | 6 Oct 2008 | 3:20 pm The Fed Gets to WorkAmid mounting fears that a global contagion was threatening the world's banking system, the Federal Reserve used its new powers under the federal bailout plan to inject even more liquidity into financial markets.It began by announcing that it would start to pay interest on the reserve funds that banks keep on deposit at the Fed. The rates are relatively low—0.1 percentage point below its Fed Funds target rate for reserves required by law, and 0.75 points below for reserves above the minimum—but are nonetheless important. Not only does the interest give banks some added income as their losses on mortgage-backed securities mount, but it is designed to encourage them to keep more money in reserve with the Fed. That bolsters their balance sheets and gives the Fed additional capital with which to help faltering banks. The Fed has also said it would immediately increase the funds it makes available to banks through its Term Auction Facility, a program in which it makes short-term—28- and 84-day—secured loans to banks in need of immediate cash. Borrowing in this way lets banks avoid having to sell securities and other assets into a falling market, thereby depressing prices further The Fed said it would increase the size of both its regular and forward term-auction facilities by $150 billion, to $600 billion and $900 billion, respectively. Despite the Fed's moves, U.S. stocks fell sharply. The Dow Jones industrial average dove below 10,000 for the first time in four years, losing more than 400 points, or 4 percent. Other indexes were faring even worse, with the Standard & Poor's 500 index off by nearly 5 percent after an hour of trading.Related Links Looking for a Way Out Hit the Panic Button America's Ad Hoc Fiscal and Monetary Policy Source: Portfolio.com: Top 5 | 6 Oct 2008 | 2:30 pm Keep Seat Belts FastenedNo rollercoaster has a ride quite like today's trading in the stock market. For much of the day, the trip was one way: down. Stocks tumbled in Asia and Europe. When the market opened in the New York, the Dow Jones industrial average quickly shed more than 200 points. By 2 p.m., it was down 800 points. The market appeared to be in a free fall, with investors gripped by fears that the credit crunch had infected the global economy to the point where it was immune from government actions. It was a panic. In the last hour and a half of trading, however, buyers emerged and the market pared back its losses. The Dow closed down 369.88, or 3.6 percent to below 10,000 for the first time since 2004. The S.&P, 500 ended down 42.38 points, or 3.9 percent, to its lowest level since November 2003. "It's like a fire,'' Emmanuel Soupre, a fund manager at Neuflize OBC Asset Management in Paris,told Bloomberg News. "It's easier to extinguish five minutes after the start. Now we're about an hour into it. We have to act quickly to assure the continuity of the financial system to avoid an irreversible contamination of the entire economy.'' The response confirms that the new U.S. bailout program won't provide immediate relief to the stresses on the global financial system. Indeed, the global market rout sparked speculation of a coordinated cut in interest rates by the leading central banks. The futures market is pricing in a half-point cut in rates by the Federal Reserve this month. 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. Related Links The Buck Stops Where? Incentives for Inflation Hit the Panic Button Source: Portfolio.com: Top 5 | 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. 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. 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
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