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Sovereign confirms deal talks with Banco SantanderNEW YORK -- Sovereign Bancorp says it is in advanced discussions with Spain's Banco Santander regarding a possible buyout of the Philadelphia-based thrift.Source: L.A. Times - Business | 13 Oct 2008 | 2:45 pm Markets surge after crisis talksUS stocks rise strongly in early trading, as global shares respond to efforts by world leaders to stem the financial turmoil.Source: BBC News | Business | World Edition | 13 Oct 2008 | 2:38 pm Sharper Image to license its brand to maker of massage productsFour months after exiting bankruptcy, Sharper Image has signed a deal that will migrate its brand name to thousands of stores at a variety of chains.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:32 pm Metals Stocks: Gold falls as rescue plans reduce safe-haven buyingSelling in gold futures carries into a third straight session, as government agreements reached in Europe and the U.S. to support the banking sector serve to dampen safe-haven demand.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:31 pm Oil near $82, Goldman cuts price forecastsLONDON (Reuters) - Oil rose above $82 a barrel on Monday after governments around the world acted to boost confidence in the global banking system, spurring a rally in European and Asian stock markets and commodities.Source: Reuters: Business News | 13 Oct 2008 | 2:29 pm Airline Stocks: Broader market's rally bolsters air sectorAirline stocks move higher amid a broader market rally, as weekend agreements in Paris and Washington to bolster the banking system help begin the process of restoring investors’ fragile confidence.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:29 pm Germany, France pledge over $1.1 trillion to support banksGermany and France on Monday unveiled bank rescue plans worth over $1.1 trillion in total as governments across Europe took drastic steps to stabilize the sector.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:28 pm Europe acts to strengthen banksGermany, France and Spain announce financial rescue schemes to shore up their banking systems.Source: BBC News | Business | World Edition | 13 Oct 2008 | 2:27 pm UK banks receive £37bn bail-outThe UK government says it is to inject a total of up to £37bn into Royal Bank of Scotland, Lloyds TSB and HBOS.Source: BBC News | Business | World Edition | 13 Oct 2008 | 2:26 pm Biotech Stocks: Drug stocks rally on Europe bank bailoutDrug stocks rallied in early trading Monday, the first session following one of the most devastating weeks ever for investors in the history of Wall Street.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:26 pm Mitsubishi closes $9 billion investment in Morgan StanleyNEW YORK -- Morgan Stanley completed a deal Monday to receive a $9 billion investment from Japanese bank Mitsubishi UFJ Financial Group Inc., giving it a much-needed cash infusion.Source: L.A. Times - Business | 13 Oct 2008 | 2:26 pm Europe takes lead on bank bailoutsEuropean authorities lead the way on a series of efforts to recapitalize troubled banks and unclog short-term money markets, after a weekend of frantic talks aimed at averting a global economic meltdown.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:24 pm GM shares rebound after Detroit merger reportsDETROIT (Reuters) - Shares of General Motors Corp jumped almost 18 percent on Monday after reports the No. 1 U.S. automaker had been in merger talks in recent weeks with smaller rivals Ford Motor Co and Chrysler LLC.Source: Reuters: Business News | 13 Oct 2008 | 2:23 pm Markets cheer bank bail-outsThe world's stock markets reacted positively to the gathering campaign to bail-out the world's troubled banks, with governments on both sides of the Atlantic announcing measures to restore liquidity and inject fresh capital into their ailing banking systemsSource: FT.com - US homepage | 13 Oct 2008 | 2:18 pm GM shares rebound after Detroit merger reports (Reuters)
Source: Yahoo! News: Business | 13 Oct 2008 | 2:18 pm Government Intervention Problematic Despite Rally (Tradecraft)A short-term recovery doesn't fix long-term problem of government meddling in markets.Source: SmartMoney.com | 13 Oct 2008 | 2:17 pm France and Germany join rescue with €820bn pledgeFrance and Germany today agreed to pledge €820 billion (£642 billion) to the future of their country's banking systems following Britain's ground-breaking £37 billion bailout.Source: Latest Business News from Times Online | 13 Oct 2008 | 2:16 pm Buiter Says U.K. Has Best Crisis Solution of Those OfferedSource: Bloomberg - All Podcasts | 13 Oct 2008 | 2:16 pm Apple Upgraded at Sanford C. Bernstein on `Compelling' OutlookSource: Bloomberg - All Podcasts | 13 Oct 2008 | 2:13 pm UK bank bail-out to take big stakes in top banksLONDON (Reuters) - Britain waded in with 37 billion pounds ($64 billion) of taxpayers' cash to bail out three major banks on Monday, in a move that could make the government their main shareholder.Source: Reuters: Business News | 13 Oct 2008 | 2:13 pm Your money: What you're really voting forThe American financial system is in a state of complete, hair-on-fire chaos. Keep that in mind when you evaluate John mcCain and Barack Obama's economic plans.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 2:13 pm Santander, Sovereign confirm talksSpain’s Banco Santander says on Monday it’s in talks to buy struggling regional U.S. bank Sovereign Bancorp.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:10 pm Retail Stocks: Sears leads rebound in retail sharesRetail stocks rebound with the broader markets early Monday, with the sector’s main indicator gaining about 4% at the open after scraping to near-historic lows last week.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:09 pm Wall Street soars as government pledges bank aidNEW YORK -- Wall Street surged today as investors rushed into stocks after eight sessions of devastating losses, hoping that the stock market is finding some footing following pledges by governments to further aid the banking sector, including plans by the Treasury to buy U.S. bank stocks.Source: L.A. Times - Business | 13 Oct 2008 | 2:08 pm Europe bails out banks, UK wants new Bretton WoodsLONDON (Reuters) - Governments across the world launched multi-billion dollar bailouts on Monday to shore up tottering global banks and Britain called for a new Bretton Woods agreement to reshape the world financial system.Source: Reuters: Business News | 13 Oct 2008 | 2:07 pm Asia Markets: Hong Kong stocks surge more than 10%Hong Kong stocks move sharply higher, recouping some of the losses from the previous week amid effrots by governments around the world to find a solution to the global financial crisis.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:03 pm Morgan Stanley shares rally on revised Mitsubishi UFJ dealMorgan Stanley has wrapped up a revised deal with Japan's Mitsubishi Financial Group. It would give Morgan Stanley badly needed capital after enduring a massive stock decline last week on concerns over its future.Source: MarketWatch.com - Top Stories | 13 Oct 2008 | 2:01 pm CL Verify Launches TRACKER Skip-trace ServiceIndustry Leader Responds to Increasing Need for Effective Loan Portfolio Management TAMPA, Fla., Oct. 13 /PRNewswire/ -- CL Verify today announced the launch of...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 2:00 pm Lubrizol Expands Estane(R) Engineered Polymers Product OfferingsCLEVELAND, Oct. 13 /PRNewswire-FirstCall/ -- The Lubrizol Corporation (NYSE: LZ) announced today that it will expand its Estane(R) Engineered Polymers product line with...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 2:00 pm Closer to the Bottom (Today From Barron's)There's reason to believe that the stock-market averages will hit bottom in the next few months.Source: SmartMoney.com | 13 Oct 2008 | 1:57 pm Wall Street rises on bank rescues, MorganNEW YORK (Reuters) - Stocks rose on Monday as a push by governments around the world to pump money into the clogged banking system sparked relief among investors and credit markets showed signs of loosening up.Source: Reuters: Business News | 13 Oct 2008 | 1:55 pm Wall Street rises on bank rescues, Morgan (Reuters)
Source: Yahoo! News: Business | 13 Oct 2008 | 1:55 pm Europe acts to rescue banksBerlin has endorsed a bill to restore liquidity and inject up to €470bn in capital into the country's ailing banking and insurance sector. The move is part of a coordinated bailout by European governments, led by the UK, with the US poised to follow suit. Meanwhile, European central banks offered unlimited dollar funding in action agreed with the Fed. Stocks in Asia, Europe, London and on Wall Street were all up, rebounding after the worst week since the Depression eraSource: FT.com - US homepage | 13 Oct 2008 | 1:54 pm Sovereign Confirms Talks with Banco Santander Regarding Possible Business CombinationPHILADELPHIA, Oct. 13 /PRNewswire-FirstCall/ -- Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), today confirmed that it is engaged in advanced discussions...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:53 pm Early Rebound Lifts MarketA global rally and efforts to shore up the world's financial systems sent stocks soaring early.Source: SmartMoney.com | 13 Oct 2008 | 1:49 pm Stocks: Bailout rallyStocks surged Monday morning as investors cheered the global response to the deepening financial crisis, following the worst week on Wall Street in history.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 1:45 pm Indie oil hunter strikes a 'screamer'The drilling rig rose incongruously over the peaceful college town of Stillwater, Okla. It roared and screeched with activity. Roughnecks, slathered head to toe in mud, scrambled and cursed a blue streak as they threw chain and tripped out two-ton stands of pipe. D.G., a.k.a. "Stretch," a good-natured chain hand, weighed in with a salvo of riotously profane slander, largely addressed to his fellow oil drillers. It could have pinned back the ears of the most depraved drill sergeant on earth. It could have peeled paint.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 1:45 pm Europe bails out banks, UK wants new Bretton Woods (Reuters)
Source: Yahoo! News: Business | 13 Oct 2008 | 1:42 pm Seven Summits Research Releases Comments on KO, GILD, NUE, JNJ and UTXCHICAGO, Oct. 13 /PRNewswire/ -- Seven Summits Strategic Investments releases its Stocks To Watch Guide. The Seven Summits Strategic Investments Stocks To...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:31 pm Seven Summits Research Releases Alerts on GE, GM, BUD, NOC, and WMBCHICAGO, Oct. 13 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:31 pm Analyze DissInstitutional Investor magazine's All-America analyst rankings usually reward Wall Street pros who picked winners, but 2008's crop—especially in the financial businesses—is populated with those who were best at finding the losers in the lot.Exhibit No.1: Sanford Bernstein's Brad Hintz, who topped the list among those watching brokers and asset managers. He jumped from third place (where he had spent the past five years) into first because he put a buy rating on just one stock, Charles Schwab. Its shares climbed 26.5 percent as the firms like Bear Stearns and Lehman Brothers disappeared and others were pushed to the brink. You can find complete coverage on the magazine's website. Exhibit No.2: Mike Mayo of Deutsche Bank, who downgraded Citigroup to a sell in October 2007—when it was trading at $45—three weeks before the board blew out chairman and C.E.O. Chuck Prince. He finished third on the large-cap-banks team. Meredith Whitney, the comely Doyenne of Doom, was a mere runner-up, according to the 3,000 or so financial pros Institutional Investor consulted for its survey. But, possibly proving Portfolio.com's Megan Barnett's point that the financial stocks can no longer be analyzed, showing that even the best may have been snoozing a bit, several of the winners saw no big issues with financial giants that ended up out of business or bailed out by the government. First Team consumer-finance analyst Bruce Harting had Fannie Mae and Freddie Mac overweighted in his portfolio until the companies were seized by the government. Then again, he worked for the Lehman-That-Is-No-More. Another Bernstein pro, Todd Bault will get a nice head shot in the magazine as the top insurance/nonlife analyst, but he'll also have to live down an infamous call: In mid-August 2008, he said derivatives-crazed A.I.G.’s losses were "completely manageable versus their book value." That'll be reassuring to Treasury Secretary Hank Paulson, who now essentially owns A.I.G. after the government agreed to a bailout that has grown to more than $120 billion. Related Links The Fed Turns Up the Tap Bear Funds Being Liquidated: Who Wants to Buy? Special Situation: Lehman Subprime Unit Shutdown 
Source: Portfolio.com: Top 5 | 13 Oct 2008 | 1:30 pm Macmillan/McGraw-Hill Reading Program Achieves Substantial Success in Florida Elementary AdoptionsNEW YORK, Oct. 13 /PRNewswire/ -- Macmillan/McGraw-Hill, one of the nation's leaders in educational publishing for elementary schools, has achieved great success...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:30 pm Europe moves to quell financial firestorm (AFP)
Source: Yahoo! News: Business | 13 Oct 2008 | 1:28 pm Cincinnati Financial Gives Early Online Access to Its Third-quarter Investment Portfolio Listing-- Highlights financial strength and liquidity -- Affirms guidance for full-year 2008 CINCINNATI, Oct. 13 /PRNewswire-FirstCall/ -- Cincinnati Financial ...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:28 pm SocGen demands probe into sudden share fallSociete Generale, the French investment bank, demanded an official investigation into a fall in its share price today following speculation that heavy losses could force a €10 billion capital increase.Source: Latest Business News from Times Online | 13 Oct 2008 | 1:22 pm Beacon Equity Issues Technical Trade Alerts on Jewelry Stocks: TIF, NILE, ZLC, SIG, BMJDALLAS, Oct. 13 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:20 pm French rogue trader 'very minor' case in finance storm: lawyerFrench rogue trader Jerome Kerviel, accused of gambling away billions of euros at Societe Generale, is a "very minor player" compared to the mega-losses run up by banks in the global...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:18 pm MSC Cruises' Holiday Sailings From $699 Plus Kids Sail FreeFORT LAUDERDALE, Fla., Oct. 13 /PRNewswire/ -- Limited space is available on MSC Lirica's Caribbean holiday sailings at rates that make a holiday away from home an...Source: Infocious RSS raw feed - channel BNewsBusiness | 13 Oct 2008 | 1:16 pm Earnings Confessions Starting (AFFX, BEAV, COHR, CONN, NTY, ORBK)
Affymetrix Inc. (NASDAQ: AFFX) announced preliminary revenues of about $75.0 million vs. $90 million expected from First Call consensus. The company said global sales fell below expectations for the quarter as increased competition for academic research funding and continued softness in industrial spending. BE Aerospace Inc. (NASDAQ: BEAV) is seeing its shares actually trading up on a large order announcement from Airbus. The maker of airplane interiors raised guidance for this past quarter to $0.54 EEPS vs. $0.50 estimates, but it lowered guidance in Q4 to $0.50 EPS vs. $0.57 estimates. Due to issues in the airline sector and delays in aircraft orders and building delays, the company is also lowering 2009 and 2010 expectations. Coherent, Inc. (NASDAQ: COHR) has put revenues in the range of $141 to $142.5 million rather than its prior range of $154 to $157 million. The photonics based solutions provider company is also closing its excimer laser site in Munich, Germany and will consolidate those operations in Goettingen, Germany. Conn's, Inc. (NASDAQ: CONN) issued its post hurricane update on its retail locations by saying that hurricanes Ike and Gustav took out roughly 144 store days of performance for the quarter. The company said it will update guidance in November, but for all practical purposes this is a light version of an earnings warning from the electronics and home appliances retailer with operations throughout Louisiana, Texas, and Oklahoma. NBTY Inc. (NYSE: NTY) issued preliminary guidance of $602 million in revenues rather than the $614.7 million estimates. The company said organic growth in US wholesale nutrition sales were up 12%, but European sales were down 14%. It also noted that same store sales in the US were down 10%. No indications have been seen on this one yet. Orbotech Ltd. (NASDAQ: ORBK) has issued lower guidance for third quarter revenues with a lower range of $90 to $95 million rather than the $104.5 million consensus as certain PCB customers have deferred deliveries for its PCB systems.
Jon C. Ogg Source: 24/7 Wall St. | 13 Oct 2008 | 1:06 pm Morgan Stanley secures investmentJapanese bank Mitsubishi UFJ buys a 21% stake in Morgan Stanley for $9bn after securing more favourable terms..Source: BBC News | Business | World Edition | 13 Oct 2008 | 1:01 pm Gartman Sees Stock `Bounce,' No End Yet to Bear MarketSource: Bloomberg - All Podcasts | 13 Oct 2008 | 12:51 pm MUFG buys 21 percent stake in Morgan StanleyNEW YORK (Reuters) - Mitsubishi UFJ Financial Group Inc (MUFG) said on Monday it bought a stake in beaten-down Morgan Stanley, though at more favorable terms, as the U.S. government reportedly offered to support the Japanese bank's investment.Source: Reuters: Business News | 13 Oct 2008 | 12:46 pm MUFG buys 21 percent stake in Morgan Stanley (Reuters)
Source: Yahoo! News: Business | 13 Oct 2008 | 12:46 pm MySpace unveils $25 ad serviceSource: Business and financial news - CNNMoney.com | 13 Oct 2008 | 12:45 pm Treasury to name financial asset managers soonWASHINGTON (Reuters) - The U.S. Treasury Department expects to name asset managers for its $700 billion financial rescue plan within days and is working "around the clock" to thaw credit markets, the program's new chief said on Monday,Source: Reuters: Business News | 13 Oct 2008 | 12:45 pm Krugman wins Nobel for economicsAmerican Paul Krugman has won this year's Nobel economics prize for his work on trade patterns, it has been announced.Source: BBC News | Business | World Edition | 13 Oct 2008 | 12:40 pm Mitsubishi UFJ Closes Morgan Stanley (MS) Deal
Morgan Stanley shares are up almost 40% in pre-market trading. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Oct 2008 | 12:38 pm Job done?Will the efforts to revive the banking sector work?Source: BBC News | Business | World Edition | 13 Oct 2008 | 12:22 pm Rate-setter hints at cut on recession fearsAndrew Sentance, a member of the Bank of England's Monetary Policy Committee (MPC), today heightened hopes that another interest cut could be on the way amid forecasts that the UK had already entered a recession.Source: Latest Business News from Times Online | 13 Oct 2008 | 12:10 pm European and Asian markets bounce backInvestors get a lift from overnight gains in Asia and coordinated attempts by European and U.S. authorities to prop up the banking system.LONDON — European markets rallied strongly Monday following Asia's lead in response to the widespread government efforts over the weekend to shore up the world's battered financial system. Source: L.A. Times - Business | 13 Oct 2008 | 12:08 pm European and Asian markets bounce backInvestors get a lift from overnight gains in Asia and coordinated attempts by European and U.S. authorities to prop up the banking system. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 12:08 pm UK launches £37bn bank rescueRoyal Bank of Scotland, Lloyds TSB and HBOS agreed to scrap dividend payments in exchange for a government rescue package of £37bn. RBS is to get £20bn of government money and could end up with the government owning 60% of the bank. Lloyds TSB and HBOS wil raise £17bn from the government. Barclays will separately tap private investors for £6.6bn.Source: FT.com - US homepage | 13 Oct 2008 | 12:05 pm World stocks, oil jump after bank rescue plans (Reuters)
Source: Yahoo! News: Business | 13 Oct 2008 | 12:00 pm World stocks, oil jump after bank rescue plansLONDON (Reuters) - World stocks jumped on Monday from last week's five-year low after policymakers around the world took new and drastic steps to rescue banks and prevent the global economy from sinking into recession.Source: Reuters: Business News | 13 Oct 2008 | 12:00 pm Thanks, HankIf nothing else, this should put to rest some of the paranoia about the Goldmanization of Treasury.Goldman Sachs and Morgan Stanley have each thought itself to be the elite of Wall Street—while there was a Wall Street. When Hank Paulson was at Goldman Sachs and John Mack was at Morgan Stanley and then at Credit Suisse First Boston, they were fierce rivals. But now the Paulson Treasury Department has come to the aid of Morgan Stanley, reports Andrew Ross Sorkin of the New York Times. Treasury officials offered protection to Japanese bank behemoth Mitsubishi UFJ if it went ahead with its planned $9 billion investment in Morgan Stanley. That seemed to do the trick. The two companies announced today a revised deal for Mitsubishi to take a 21 percent stake in Morgan Stanley. Under the revised terms, the Japanese bank has acquired $7.8 billion of perpetual noncumulative convertible preferred stock with a 10 percent dividend and a conversion price of $25.25 per share, and $1.2 billion of perpetual noncumulative nonconvertible preferred stock with a 10 percent dividend. Half of the convertible preferred automatically converts after one year into common shares when Morgan Stanley's stock trades above 150 percent of the conversion price for a certain period, and the other half converts on the same basis after year two. The nonconvertible preferred stock is callable after year three at 110 percent of the purchase price. "We are honored to welcome Mitsubishi UFJ, a global leader in commercial banking, as a long-term investor and strategic partner of Morgan Stanley," Mack said in a statement. Last week, doubts about the deal—and Morgan Stanley's ability to survive—hammered shares of the firm and pushed up sharply the costs of credit-default swaps on its debt. The stock closed at $9.68 on Friday. Today, shares of Morgan Stanley are poised to soar. Mitsubishi agreed on September 29 to buy $6 billion of convertible preferred shares of Morgan Stanley and $3 billion of common shares at $25.25 per share. Several reports indicate that the revised deal will involve only $9 billion worth of convertible preferred. That is an investment that Treasury will now guarantee. After the collapse of Lehman Brothers sent violent shock waves throughout the world's financial markets, it is clear that Washington wants to do everything to avoid a repeat. As Rob Cox said on Breakingviews.com on Friday: "The question immediately before policymakers—particularly President Bush and Treasury Secretary Hank Paulson—is whether the lesson it might teach in letting another firm go outweighs the harm it would inflict on the economy and the credit system on which it depends. The answer is surely no." Related Links Wall Street's New Realities Uncle Sam the Shareholder The Department of Goldman Sachs
Source: Portfolio.com: Top 5 | 13 Oct 2008 | 12:00 pm Yahoo! (YHOO) Deal For AOL (TWX) Done?
The deal should be much more difficult to do, but TWX CEO Jeff Bewkes may feel humiliated if he can't land a transaction work. Yahoo! trades at a multi-year low, at $12, making its market cap $17 billion. It can hardly pay a great deal for AOL with it own value so sharply cut over the last several weeks. But, the deal could be announced in the next day or two. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Oct 2008 | 11:43 am Santander eyes Sovereign in hunt for bargainsMADRID (Reuters) - Spain's Santander said it was in talks to acquire Sovereign Bancorp Inc on Monday, as the euro zone's largest bank hunted for bargains in a sector that has been hit by the global financial crisis.Source: Reuters: Business News | 13 Oct 2008 | 11:32 am Flood the ZoneAs the U.S., Britain, and other countries prepare to inject capital into ailing banks, central banks are pouring in as many dollars as needed to free up markets.In a joint statement, the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, and the Swiss National Bank said they would expand current currency-swap arrangements to "accommodate whatever quantity of U.S. dollar funding is demanded." The central banks will supply dollars for 7-day, 28-day, and 84-day maturities at fixed interest rates. "Central banks will continue to work together and are prepared to take whatever measures are necessary to provide sufficient liquidity in short-term funding markets," the banks said. Short-term credit markets have been frozen as banks hoard dollars, bracing for losses on investments and hits from defaulting counterparties. Because of the Columbus Day holiday, there was no dollar Libor setting in London today. The three-month dollar Libor, or London Interbank Offered Rate, climbed last week to 4.82 percent. (The U.S. bond market is closed today, while the stock market is open.) Still, other money-market rates in Europe fell. The move by the central banks, on top of the planned bank recapitalizations, fueled rallies on Asian and European stock markets. Both London and Frankfurt surged more than 5 percent. The Japanese market was closed for a holiday. "By providing unlimited dollar funds, they are acting on the back of the G7 plan to ensure the system is fully liquidized," said Lena Komileva, an economist at Tullett Prebon in London told Bloomberg News. "We're going to see even more liquidity provided and more aggressive rate cuts are coming." Related Links Hit the Panic Button TARP for CP Should the Fed Target Libor?
Source: Portfolio.com: Top 5 | 13 Oct 2008 | 11:30 am Saving your nest eggLawrence Ferreira, 56, has become bear-market road kill. The New York City attorney's 401(k) plan, which is split between four stock funds, is down 35% this year, erasing tens of thousands of dollars in retirement assets.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 11:20 am Top Pre-Market Analyst Upgrades (ANN, CVC, COF, CELG, GME, PPDI, STJ, STI, THQI, WOOF, WU)These are some of the many research upgrades we have seen from Wall Street analysts this Monday morning with more than two hours to the open:
Jon C. Ogg Source: 24/7 Wall St. | 13 Oct 2008 | 11:18 am Top Pre-Market Analyst Downgrades (ALL, DO, DOW, JCG, LULU, SONC)
Jon C. Ogg Source: 24/7 Wall St. | 13 Oct 2008 | 11:11 am Oil rebounds on European bank rescue planRead full story for latest details.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 11:05 am Goldman Sachs Hits Oil Sector (BHI, EP, XOM, KMP, MMP, EPB, MRO, MUR, KGS, SLB)
Here are the downgrades in the sectors:
Jon C. Ogg Source: 24/7 Wall St. | 13 Oct 2008 | 11:00 am Spoiler alert: Comic books are alive and kickingThe Dark Knight and Iron Man are the two biggest movies at the American multiplex so far this year. It's become rote that super-heroes rule the box office, just as the conventional wisdom is that the old print comic book is a dying art form that has found a new lease on life in its onscreen iterations.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 10:54 am When a smart adviser really mattersBelieve it or not, someday you'll feel like buying stocks again. It will no longer seem that the end of the financial world is at hand, and that even hiding money (if you have any left) under your mattress may not be safe enough.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 10:48 am Britannia explores merger deal with Co-OpBritannia Building Society confirmed this morning that it was in talks with Co-Operative Financial Services (CFS) which could lead to a merger of the two mutuals in the face of the growing economic turmoil.Source: Latest Business News from Times Online | 13 Oct 2008 | 10:35 am Iceland stock market to stay shutIceland's stock exchange says trading will remain suspended on Monday due to continuing "unusual market conditions".Source: BBC News | Business | World Edition | 13 Oct 2008 | 10:12 am Can The Market Rally For A Week? It Needs To (PEP)(JNJ)(INTC)(WFC)(JPM)(MS)
If stocks are going to dodge a move toward 7,000 or below, they have to show that they can rally most days this week and end with the Dow, S&P, and Nasdaq higher by 10% before the close on Friday. There are plenty of potential obstacles in the way. The first among these went away as the Mitsubishi UFJ investment in Morgan Stanley (MS) close. If the deal had fallen apart or the terms had sucked the blood out of common shareholders, Wall St could react poorly assuming that any similar rescue could cut the value of equity to the quick. But, Morgan shares rallied 40% on the news. Then there is the matter of earnings, which most people have forgotten in all of the excitement. Intel (INTC), Johnson & Johnson (JNJ), PepsiCo (PEP), Wells Fargo (WFC), and JP MorganChase (JPM) all release figures before mid-week. If any of them or several of them stumble badly, can the market stay on an uphill trek? The recession is still sitting out there somewhere and it will not spare earnings or allow firms to keep all of their employees. Analyst downgrades of stocks could come almost immediately, as the largest firms in the economy start to shave forecasts. To some extent, the bank rescue packages that are cropping up like weeds across the developed nations will have had their affect on markets by Tuesday or Wednesday. That leaves the back half of the week to carry what may be a diminishing flow of good news. If the markets can demonstrate that investors have become believers again, they may have clawed their way off of a bottom. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Oct 2008 | 10:07 am China automakers say no dealer talks with ChryslerSHANGHAI (Reuters) - Chinese automakers Chery Automobile Co and SAIC Motor said on Monday they have not had talks about possible access to Chrysler's U.S. dealership network with Cerberus Capital Management LP , majority owner of the troubled U.S. car maker.Source: Reuters: Business News | 13 Oct 2008 | 9:59 am As UK Bank Rescue Moves Forward Could The US Treasury Own Most Of Citigroup (C)?
Even though the government will own preferred shares, it will still be putting a huge amount into the firms. In many ways, the banks are no longer "independent". The next question is whether something similar could happen in the US if the worldwide rescue of banks does not take hold immediately. The British program is rich indeed. A total of $73 billion will go into several banks. According to MarketWatch, "banks will pay a hefty annual interest rate of 12% for the cash and have also agreed not to pay any dividends until all the preference shares have been repaid in full." The interest rate is breathtaking, but the financial firms had no other options. The world focus now moves to the US, which has a number of troubled large banks. Washington Mutual and Lehman are already gone. Morgan Stanley (MS) is paying dearly for capital. Wachovia (WB) is becoming part of Wells Fargo (WFC). None of these M&A transactions solves the problem that mortgages are still defaulting at rates which are the highest in 80 years and the value of banks assets is still being harmed by that drag on the economy. Treasury Secretary Henry Paulson has $700 billion to spread around, but everyone from the state of Massachusetts to the Second Third National Bank of Akron would like a taste. GM (GM) is rumored to be looking for a handout. Too many analysts have already pointed this out, but there is only so much money to go around. Even if a bank like Citi sells some of its toxic paper to the Treasury, its troubles are not over. It has exposure to consumer credit card and auto debt. It may have exposure to Lehman defaulted credit derivatives. Some estimates are that the total size of the Lehman pot may be $400 billion. No one knows who holds most of those obligations. But, as the day or reckoning comes, probably this week, all of the information about those liabilities will become public. Citi certainly holds LBO debt which tends to become distressed in a recession. A poor credit market will also harm its M&A, underwriting, and retail brokerage businesses. Citi is not out of the woods. The Treasury may have to make a large direct investment in the bank. Paulson says he is ready to do that for American money center firms, if necessary. Citi's market cap is down to $76 billion. The Treasury may not begin to buy-in toxic paper for a few weeks. Morgan Stanley (MS) is a fine example of what the market can do when it turns on a firm like a pack of rabid dogs. If Treasury has to put $40 billion into Citi, it becomes the majority shareholder in the bank no matter how the money goes in. The fact that it is preferred or convertible does not mean much. If Citi does not pay, Treasury has the right to trade their investment in for plain old equity. The market challenge for US banks is not over yet. Matters may be resolved before the end of the year, but they may not be resolved pleasantly. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Oct 2008 | 9:45 am Asian markets rebound on bank rescue hopesHong Kong shares surged as much as 10.7 per cent on Monday their biggest intraday rise in more than 33 years leading a broad rebound in Asia Pacific stock markets from their worst week since 1987.Investors...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 9:40 am Euro rallies after Paris-summit agreementThe euro rallied strongly on Monday after eurozone leaders agreed on a region-wide bank rescue plan, at an emergency Paris summit on Sunday night.The eurozone currency climbed 0.6 per cent against the...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 9:20 am The Caste System At The Core Of The Credit Crisis
The con and its temptation was simple at each level. The poor would become middle class if they bought a house. The middle class would become wealthy, and the wealthy would become maharajahs and sultans. Like many well-crafted schemes, it worked for a while. The trouble with the mechanics of the most recent boom is that the imaginary financial upgrading of so many people left very few who viewed themselves as poor enough that they needed to save money or live frugally, and none seemed seriously concerned about their financial future. The incentive for each person to keep his place in the hierarchy was gone. As long as money was cheap and houses were increasing in value, this train just picked up speed. The charlatans made money at each level of the intricate framework. At the most basic level in the system, mortgage brokers were paid for each deal which they originated, regardless if they made sense financially. Indeed, they made less money if they only lent money to people who were good candidates. At the level of the mortgage banks themselves, operations like Countrywide collected fees by granting mortgages, levying fees on late payments it knew people could not afford in the first place, and from the interest paid on the loans. As long as housing prices moved up, the company could even make money from foreclosing on properties and selling them at higher prices. It was a fool's paradise and men like Angelo Mozilla, Countrywide's CEO, made hundreds of millions of dollars. Most of these people will probably not spend a day in prison. Investment bankers were at the top of this Darwinian heap. They were intelligent enough, and had the sense to hire Phds in math from universities such as Princeton to create new financial paper consisting of thousands of mortgages thrown together and then cut into tranches that they could then sell and trade. The only problem with this program was that a system-wide jump in subprime mortgage failures proved that the calculus behind the mortgage-backed securities was flawed from the start. It was based on the certainty that the average home value in American would keep going up indefinitely. That brings the mortally wounded economy back around to the presence of the poor, or those who feel poor, as the most critical underpinning of any financial system, although the logic of that appears perverse and unimaginable. One of the pillars of any successful economy is having a large number of people who do not aspire to things which they cannot afford. They will not sign for the delivery of things unless they easily have the ability to pay for them whether it is a tractor, a home, a car, or a plasma-screen television. No financial system works when a number of people do not feel "poor" regardless of their incomes. Those who are close to poverty in their own minds save and accept the frugal life for what it is—a life that can not survive the additional risks of debt added to those of potential medical, social and political calamities. Then there is the trouble of having to deal with the dysfunctional aspects of a world which revolves around the need to feel rich. For years, the typical American has not saved money for "a rainy day". Retirement was based on the notion that everything became more valuable every year. There was no point in keeping any money in reserve. Saving was equated with wasting money because it yielded so little. The financial companies who benefited the most from this con plan to make money by encouraging the aspirational life from the bottom of the economic system to the top are now going through catastrophic failures. Now millions of people will join the ranks of the poor. The caste system has had its revenge. No one can be rich if no one is poor. Douglas A. McIntyre Source: 24/7 Wall St. | 13 Oct 2008 | 9:05 am Banks jump after governments agree bail-outBanks in Europe jumped on Monday, pushing equity markets sharply higher after European policymakers detailed plans to follow the UK in a wholesale rescue of the region's financial system.In London, the...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 9:03 am Banks lead jump in European sharesConcerted action by European leaders at the weekend to throw a lifeline to the continent's banks sparked a surge in financial stocks on Monday after spectacular falls in the previous week. "European policymakers...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 9:01 am Britain Props Up Banks as Fed Leads Funding EffortBritain began injecting banks with taxpayer funds while the Fed and three European central banks said that they will offer financial institutions unlimited dollars to ease the banking crisis.Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 8:56 am Sony (SNE) Opts To Let PS3 Prices Stay High For Holidays: Guts On Parade
Sony Compouter Entertainment president and CEO Kazuo Hirai told The Financial Times that the PS3 is a good value because it plays Blu-Ray DVDs and that, instead of discounting, the company has added more value to the machine including increased memory and "Home," a much-anticipated online community: "When you really compare apples to apples, then I think we have a very good value proposition." There's no question that Sony will give up substantial market share by sticking to its guns on price -- but is it a savvy move or is Sony just being arrogant. Nolan Bushnell, the inventor of Pong and founder of Atari, would probably say the latter. In a 2006 interview, Bushnell correctly predicted that the Nintendo Wii would be the star of the new generation of consoles, adding that Sony is a "arrogant and capricious" company. It will be interesting to see if Sony's ballsy move pays off. The question is whether most consumers will really compare apples to apples or simply buy the more affordable system in what is expected to be an extremely weak holiday shopping season marked by an unprecedented promotional environment. The $399 system will also be competing with special holiday sales from every other store in the mall -- not just video games. Zac Bissonnette Source: 24/7 Wall St. | 13 Oct 2008 | 8:37 am Lloyds lowers HBOS takeover offerLloyds TSB renegotiates the terms of its takeover of HBOS, reducing the amount of shares it will give to HBOS shareholders.Source: BBC News | Business | World Edition | 13 Oct 2008 | 8:25 am US shares soar on global banking rescueWall Street today made small in-roads into reversing last week's disastrous trading when American shares rose by more than 400 points after the UK and Europe unveiled plans to bailout banking systems.Source: Latest Business News from Times Online | 13 Oct 2008 | 8:07 am Markets Rise in Europe and Asia on Vows of New CapitalBanking stocks led equity markets higher in Europe and Asia after European leaders announced plans to inject new capital into troubled banks and to guarantee interbank lending.Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 7:41 am From pet peeve to pet projectA couple opens the store Pussy & Pooch to help make downtown L.A. more dog and cat friendly.For pet lovers Janene Zakrajsek and Rob Gaudio, living in downtown Los Angeles presented some difficulties for their four-legged friends. Source: L.A. Times - Business | 13 Oct 2008 | 7:00 am Boeing military satellite bid a 'must win,' analysts sayThe unit has been hurt by a drop in commercial sales. A contract to build the next generation of communication satellites could be worth $15 billion.At Boeing Co.'s sprawling satellite-making complex in El Segundo, engineers for decades pioneered space systems that helped vastly alter the way we communicate by telephone and watch television today. Source: L.A. Times - Business | 13 Oct 2008 | 7:00 am Europe leaders agree on bank rescue planNations in the euro zone will have individual rescue packages but will coordinate with one another. They vow to inject liquidity into the banking sector to ease the credit crunch.European leaders agreed Sunday on a coordinated rescue plan to guarantee inter-bank lending, inject cash into the banking sector and take other measures to beat back the crisis caused by the global financial meltdown. Source: L.A. Times - Business | 13 Oct 2008 | 7:00 am Anxious investors hanging on despite heavy stock market lossesSome loss-laden shareholders won't open their account statements, hoping for a market turnaround.It's the watching and waiting that kills you. Source: L.A. Times - Business | 13 Oct 2008 | 7:00 am Stocks: Bargain prices or traps?When the stock market goes on sale, smart investors are supposed to seize the opportunity.Source: L.A. Times - Business | 13 Oct 2008 | 7:00 am Honda finds a groovy new way to pitch products: the musical roadIn Lancaster, a highway was altered to play a tune when Civics drove over it. It didn't last long, after neighbors complained. More singing pavement may be down the road.Ken Gibson can tell you that it's a little eerie to hear the "William Tell" overture float through your bedroom window at 2 in the morning. Source: L.A. Times - Business | 13 Oct 2008 | 7:00 am From pet peeve to pet projectA couple opens the store Pussy & Pooch to help make downtown L.A. more dog and cat friendly. For pet lovers...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 7:00 am Trillion: It's the new billionThe federal dollars being tossed in amid the financial crisis have altered the shock value of high numbers. There's...Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 7:00 am Business owner worried about losing line of creditDear Karen: I'm concerned that my business line of credit will be reduced or revoked. Do you have any advice?Source: Infocious RSS raw feed - channel BNPaperBusiness | 13 Oct 2008 | 7:00 am Brown targets fat cat pay after nationalising banks in £37 billion bailoutGordon Brown called an end to the days of overblown City salaries today as he pumped £37 billion of taxpayer money into the partial nationalisation of three of the country's biggest banks.Source: Latest Business News from Times Online | 13 Oct 2008 | 6:32 am Currency: Dollar drifts off early highsThe New Zealand dollar rose in morning trading but it wasn't sustained and the currency drifted lower again. The NZ dollar was at US59.80c at 5pm from US60.19c at 8am and US59.30c at 5pm on Friday. Last Monday morning it was buying...Source: New Zealand Herald - Business | 13 Oct 2008 | 5:42 am Scramble to avoid collapseWorld leaders were scrambling to finalise rescue plans for their banking systems as Asian markets made cautious gains amid continued fears the financial system is on the brink of collapse. In the eurozone, governments have agreed to offer guarantees on bank debt. Britain was preparing to pump billions into four of its largest banks. In the US, officials were finishing up a plan to recapitalise banksSource: FT.com - US homepage | 13 Oct 2008 | 4:40 am NZ stocks: Early gains lost, market down for the dayAfter a positive start to the week's trading, the New Zealand stock exchange has lost ground in late afternoon trading, with the benchmark NZX-50 index down 0.2 per cent. The exchange opened down slightly, after Prime Minister...Source: New Zealand Herald - Business | 13 Oct 2008 | 3:30 am ANZ predicts OCR down to 4.75pc next yearFollowing a week of turmoil on world financial markets, ANZ bank is predicting official interest rates in New Zealand will drop as low as 4.75 per cent next year. The Reserve Bank surprised markets last month with a cut of half...Source: New Zealand Herald - Business | 13 Oct 2008 | 3:00 am Fewer job ads across TasmanAdvertisements for jobs in Australia have fallen for the fifth straight month, as firms reduce hiring staff in the slowing economy. Job ads in major newspapers and on the internet fell by 1.4 per cent to a weekly average of 245,734...Source: New Zealand Herald - Business | 13 Oct 2008 | 2:30 am Cheap ticket push for Jetstar's Auckland debutAustralian airline Jetstar will launch its transtasman services from Auckland with an $89 fare sale from midday today. The low cost carrier this morning confirmed plans to expand its New Zealand operations and has put up hundreds...Source: New Zealand Herald - Business | 13 Oct 2008 | 2:00 am Tainted LegacyUntil last month, the Resolution Trust Corporation held a quiet place in American financial history: It was merely a government-sponsored company that jump-started the lending market by buying up $400 billion in assets from the rubble of the 1980's S&L debacle. "The RTC generated a lot of revenue that allowed these firms to bulk up their mortgage securities business," he says. "It let them afford the research, the analytics, the trading desks, hire 10 or 20 people." The End of Lehman Salvaging the Wreckage Who Might Buy Lehman?
Source: Portfolio.com: Top 5 | 13 Oct 2008 | 2:00 am Fed clears Wachovia bank takeoverUS Federal Reserve approves a $12bn takeover of troubled bank Wachovia and it subsidiaries by Wells Fargo.Source: BBC News | Business | World Edition | 13 Oct 2008 | 1:48 am SFO eyes Clegg & Co in finance company probeThe Serious Fraud Office (SFO) says it is now investigating Auckland-based finance company Clegg and Co Finance following its collapse last year. The company, which had about $15 million of 500 investors' funds in debentures, went...Source: New Zealand Herald - Business | 13 Oct 2008 | 1:30 am Spanish firm eyes takeover of U.S. bankSpanish bank Banco Santander SA is in "advanced talks" to acquire Philadelphia-based thrift Sovereign Bancorp Inc., the Wall Street Journal reported on Sunday.Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 1:07 am Currency: Kiwi gains after last week's diveAfter last week's dive, the New Zealand dollar gained during the weekend. By 8am today the kiwi was buying US60.19c from US59.30c at 5pm on Friday. Last Monday morning it was buying US66c. Bank of New Zealand currency strategist...Source: New Zealand Herald - Business | 13 Oct 2008 | 1:00 am Australian stocks: Week starts with a bounceThe Australian share market has rebounded from last week's plunge, led by the banks, after the Federal Government guaranteed all deposits for the next three years. At 1018 AEDT, the benchmark S&P/ASX200 was up 209.2 points, or...Source: New Zealand Herald - Business | 13 Oct 2008 | 12:50 am Shoppers opening wallets more at supermarketRising spending at supermarkets and grocery stores led seasonally adjusted retail sales up 0.4 per cent in August, even as the amount spent on vehicle fuel dropped 3.3 per cent. Figures out today from Statistics New Zealand (SNZ)...Source: New Zealand Herald - Business | 13 Oct 2008 | 12:30 am US banking rules 'outdated'US banking regulators need a "dramatic overhaul", according to Harvey Pitt who used to run one of them.Source: BBC News | Business | World Edition | 13 Oct 2008 | 12:04 am EDF considers the sale of Eggborough power stationEDF is to consider the sale of British Energy's sole coal-fired power station to clear competition hurdles.Source: Latest Business News from Times Online | 12 Oct 2008 | 11:00 pm Consolidation likely as small oil explorers seek cashThe credit crunch is set to unleash a “forest fire” of consolidation across the oil industry as smaller exploration companies struggle to refinance debts, according to industry experts.Source: Latest Business News from Times Online | 12 Oct 2008 | 11:00 pm Postcard from the edge of the financial abyssIt has been a long, wearying weekend that the world's most powerful financial officials will likely live to regret. This was the moment when they peered into the abyss of global financial cataclysm — and then decided to take a step closer to the edge. It may yet live in infamy.Source: Latest Business News from Times Online | 12 Oct 2008 | 11:00 pm Medicines shortage looms as winter approachesBritain could face a shortage of medicines this winter as the value of sterling slides and after the introduction of a new pricing regime was botched, pharmaceutical industry chiefs said last night.Source: Latest Business News from Times Online | 12 Oct 2008 | 11:00 pm ASB, Kiwibank first off the rank to adopt schemeASB Bank and Kiwibank have been quick to advise their intention to immediately opt into the New Zealand Deposit Guarantee Scheme announced by the Minister of Finance last night. "Most of the developed countries in the world now...Source: New Zealand Herald - Business | 12 Oct 2008 | 10:55 pm Uncle Sam the ShareholderFriday, October 10, 2008 may go down in history as the day that free-market ideology (at least as it's practiced by the current powers-that-be) officially died. (Update: Britain pumped $64 billion into just three of the banks. Barclays announced plans to raise capital without government help.) Incentives for Inflation Larry Summers Thanks, Hank
Source: Portfolio.com: Top 5 | 12 Oct 2008 | 7:00 pm Australia and NZ launch bank safeguard planAustralia and New Zealand launched co-ordinated plans to safeguard their banking systems on Sunday, hoping to stem heavy losses suffered by their currencies and markets last week.Source: FT.com - US homepage | 12 Oct 2008 | 6:25 pm US searches for effective voluntary responseUS officials worked around the clock over the weekend to finalise plans for a financial sector recapitalisation programme, wrestling with the dilemma of how to make it both genuinely voluntary and effectiveSource: FT.com - US homepage | 12 Oct 2008 | 6:15 pm US car groups prepare for shake-upA massive realignment is looming in the global automotive industry as financially troubled carmakers and their parts suppliers seek stronger partners and buyersSource: FT.com - US homepage | 12 Oct 2008 | 5:25 pm Apple notebooks: Past to presentSource: Business and financial news - CNNMoney.com | 12 Oct 2008 | 4:43 pm
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