NewsWatch: U.S. stock futures point to a second rally as banks recapitalized

U.S. stock futures pointed to a second rally on Tuesday after the biggest one-day point gain ever for the Dow Jones Industrial Average, as the U.S. government announced a plan to inject $250 billion into the country’s largest banks.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 1:00 pm

Futures Movers: Oil rallies on recapitalization plan for U.S. banks

Crude-oil futures extend Monday's strong gains, buoyed by the U.S. government’s plan to inject up to $250 billion into the country's largest banks that could help remove question marks about demand for petroleum.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 1:00 pm

Exchange rate, consumer-product sales boost Johnson & Johnson

Johnson & Johnson reports higher third-quarter earnings, boosted in part by a favorable foreign-exchange rate and solid sales growth for its consumer products.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:56 pm

Money-market tensions beginning to ease, Libor rates show

Decreasing short-term lending rates offer further evidence that massive government bailouts and wide-ranging debt and deposit guarantees have started to thaw frozen interbank lending markets.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:53 pm

U.S. pulls the trigger

President Bush announced an extraordinary and historic investment in the nation's banks early Tuesday - the biggest bet ever made with taxpayer dollars on the U.S. financial system.

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 12:50 pm

Phosphate Holdings Files To Sell $200 Million in Stock (PHOS)

Source: 24/7 Wall St. | 14 Oct 2008 | 12:49 pm

SocGen jumps after revealing $1.4 billion underlying profit

Shares in Societe Generale jump over 10% Tuesday after the French bank says it made an underlying profit of around 1 billion euros ($1.4 billion) in the third quarter and again denies rumors that it will need more capital.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:49 pm

Global stock markets rally

European and Asia stock markets surged after an historic rally on Wall Street as President Bush confirmed the US government would invest directly in some of the financial institutions that have seen their value wiped out by the global financial crisis
Source: FT.com - US homepage | 14 Oct 2008 | 12:47 pm

Futures soar on U.S. bank capital boost

NEW YORK (Reuters) - Stock index futures soared to session highs on Tuesday as the U.S. Treasury Department announced that it will inject $250 billion of capital in major U.S. banks to stabilize the financial system and unfreeze lending.

Source: Reuters: Business News | 14 Oct 2008 | 12:44 pm

Futures soar on U.S. bank capital boost (Reuters)

Reuters - Stock index futures soared to session highs on Tuesday as the U.S. Treasury Department announced that it will inject $250 billion of capital in major U.S. banks to stabilize the financial system and unfreeze lending.

Source: Yahoo! News: Business | 14 Oct 2008 | 12:44 pm

Before the Bell: Gold, banks, bailouts in focus

U.S. stock futures pointed to additional gains on Tuesday after the biggest one-day point gain ever for the Dow Jones Industrial Average. The U.S. government announced plans to inject $250 billion into the country's largest banks.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:44 pm

Treasury statement on bank recapitalization plan

Here is the statement released Tuesday by the Treasury Department about the bank recapitalization plan:

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:43 pm

Pepsi cuts jobs as profits slide

PespsiCo is to axe 3,300 jobs as part of a cost-cutting plan after profits fell amid lagging soft drinks sales in the US.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 12:41 pm

Movers & Shakers: Tuesday's biggest gaining and losing stocks

NEW YORK (MarketWatch) -- Shares of the following companies were among those that were expected to make notable moves in the U.S. stock market on Tuesday:

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:41 pm

Joint statement by Treasury, Fed, FDIC

Here is the joint statement made Tuesday by Treasury Secretary Henry M. Paulson, Jr, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila C. Bair:

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:40 pm

Indications: U.S. stock futures point to a second rally as banks recapitalized

U.S. stock futures pointed to a second rally on Tuesday after the biggest one-day point gain ever for the Dow Jones Industrial Average, as the U.S. government announced a plan to inject $250 billion into the country’s largest banks.

Source: MarketWatch.com - Top Stories | 14 Oct 2008 | 12:40 pm

Consumer inflation reaches 5.2%

The annual rate of UK inflation has hit 5.2%, with higher gas and electricity bills causing much of the increase.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 12:39 pm

Bush announces 'unprecedented' step to address financial crisis

The U.S. will pour at least $250 billion directly into major banks and expand federal insurance protection to encourage financial institutions to resume lending to one another.

Dramatically shifting his approach to the nation's financial crisis, President Bush announced today "unprecedented and aggressive steps" to pour at least $250 billion directly into major banks and expand federal insurance protection to encourage financial institutions to resume lending to one another.

Source: L.A. Times - Business | 14 Oct 2008 | 12:39 pm

Bush outlines US banking rescue

President George W Bush says the US government will buy stakes in major banks to try to stabilise the sector.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 12:31 pm

U.S. to pump $250 billion into banks

LONDON/TOKYO (Reuters) - The United States will pump $250 billion into its banks on Tuesday, following similar measures in Europe, but data showed the threat of recession has not been banished even if a financial sector meltdown has.

Source: Reuters: Business News | 14 Oct 2008 | 12:29 pm

German rescue

Finance minister Steinbrueck on the bank bail-out
Source: BBC News | Business | World Edition | 14 Oct 2008 | 12:28 pm

Still Holding Back (Today From Barron's)

Jeremy Grantham's says the biggest mistake might be buying too soon.

Source: SmartMoney.com | 14 Oct 2008 | 12:25 pm

J&J profit beats forecast, shares jump

NEW YORK (Reuters) - Johnson & Johnson, fueled by strong sales of consumer products and medical devices, on Tuesday reported third-quarter earnings that eclipsed Wall Street expectations and lifted shares almost 5 percent.

Source: Reuters: Business News | 14 Oct 2008 | 12:14 pm

J&J profit beats forecast, shares jump (Reuters)

Reuters - Johnson & Johnson, fueled by strong sales of consumer products and medical devices, on Tuesday reported third-quarter earnings that eclipsed Wall Street expectations and lifted shares almost 5 percent.
Source: Yahoo! News: Business | 14 Oct 2008 | 12:14 pm

J&J profit beats forecast, shares jump

NEW YORK (Reuters) - Johnson & Johnson, fueled by strong sales of consumer products and medical devices, on Tuesday reported third-quarter earnings that eclipsed Wall Street...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 12:14 pm

J&J Earnings: Size Does Matter (JNJ)

Source: 24/7 Wall St. | 14 Oct 2008 | 12:13 pm

Domino's Pizza profit misses Wall Street view

NEW YORK (Reuters) - Domino's Pizza Inc , the biggest independent U.S. pizza chain, posted a weaker-than-expected quarterly profit due to a drop in U.S. sales that overshadowed strong...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 12:11 pm

Domino's Pizza profit misses Wall Street view

NEW YORK (Reuters) - Domino's Pizza Inc , the biggest independent U.S. pizza chain, posted a weaker-than-expected quarterly profit due to a drop in U.S. sales that overshadowed strong results from its international operations.

Source: Reuters: Business News | 14 Oct 2008 | 12:11 pm

Baugur insists that administration is unlikely

Baugur today insisted it had no plans to place its UK high street empire into administration as speculation about the troubled Icelandic investment group continued to rage.
Source: Latest Business News from Times Online | 14 Oct 2008 | 12:08 pm

Johnson & Johnson (JNJ) Beats

The market needed Johnson & Johnson (JNJ) to come though with big numbers to show that the consumer goods and medical devices markets, which to a large extent depend on consumer healthcare, were OK.

JNJ delivered better than expected.

Johnson & Johnson announced sales of $15.9 billion for the third quarter of 2008, an increase of 6.4% as compared to the third quarter of 2007.

Net earnings and diluted earnings per share for the third quarter of 2008 were $3.3 billion and $1.17, respectively, up over 10%.

Douglas A. McIntyre.

Source: 24/7 Wall St. | 14 Oct 2008 | 12:08 pm

Bernanke says U.S. plan to help revive markets: report

SINGAPORE (Reuters) - Federal Reserve Chairman Ben Bernanke said a U.S. financial rescue plan to be fleshed out on Tuesday would restore normality to markets and lay the groundwork for economic recovery.

Source: Reuters: Business News | 14 Oct 2008 | 12:01 pm

J&J earnings beat estimates

(Reuters) - Johnson & Johnson reported on Tuesday third-quarter results of $1.17 a share.
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 12:01 pm

Barclays faces investment lawsuit

Barclays is sued over claims it moved loss-making investments from its own accounts to outside investors.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 12:01 pm

UK house prices to fall a further 10 per cent

House prices could fall by a further 5 to 10 per cent before the market bottoms out, a leading economist told an influential committee of MPs today.
Source: Latest Business News from Times Online | 14 Oct 2008 | 12:00 pm

Oil climbs above $84 a barrel

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 11:58 am

Top Pre-Market Analyst Upgrades (AOC, BAC, CR, DOV, FSLR, HPT, MMM, MMC, MA, SPWRA, TROW, V, WU)

These are some of the top analyst upgrades we are seeing in early hours of pre-market trading this Tuesday morning:

• AON Corp. (AOC) Raised to Buy at Goldman Sachs
• Bank Of America (BAC) Raised to Strong Buy from Outperform at Raymond James
• Crane Co. (CR) Raised to Neutral from Sell at Goldman Sachs
• Dover Corp. (DOV) Raised to Buy at Goldman Sachs
• First Solar (FSLR) Raised to Market Perform at FBR
• Hospitality Properties Trust (HPT) Raised to Outperform at Wachovia
• 3M (MMM) Raised to Neutral from Sell at Goldman Sachs
• Marsh & McLennan (MMC) Raised to Buy at Goldman Sachs
• MasterCard (MA) Raised to Outperform at Morgan Keegan
• SunPower Corp. (SPWRA) Raised to Market Perform at FBR
• T. Rowe Price (TROW) Raised to Market Perform at KBW
• Visa Inc. (V) Raised to Buy at Piper Jaffray
• Visa (V) Raised to Outperform at Morgan Keegan
• Western Union (WU) Raised to Overweight at JP Morgan

Jon C. Ogg
October 14, 2008

Source: 24/7 Wall St. | 14 Oct 2008 | 11:55 am

Pepsi to cut jobs, close plants

Soda-and-snacks giant announces job cuts and other belt-tightening steps after reporting softer-than-expected earnings Tuesday.

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 11:55 am

PepsiCo profit misses view; to cut 3,300 jobs

NEW YORK (Reuters) - PepsiCo Inc reported a quarterly profit that missed Wall Street expectations, hurt by disappointing U.S. soft drink sales.

Source: Reuters: Business News | 14 Oct 2008 | 11:51 am

PepsiCo profit misses view; to cut 3,300 jobs (Reuters)

Reuters - PepsiCo Inc reported a quarterly profit that missed Wall Street expectations, hurt by disappointing U.S. soft drink sales.
Source: Yahoo! News: Business | 14 Oct 2008 | 11:51 am

SAIC Awarded $30 Million Contract by U.S. Navy, Naval Facilities Engineering Command - Southwest

Company to Provide Environmental Planning Support to Help Meet National Environmental Policy Act Requirements SAN DIEGO and MCLEAN, Va., Oct. 14 /PRNewswire-FirstCall/...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:50 am

Ireland prepares to deliver 'harsh' budget

Brian Lenihan, Ireland's finance minister, will deliver the harshest budget in decades later today, brutally signalling the end of the boom years of the “Celtic Tiger” economy.
Source: Latest Business News from Times Online | 14 Oct 2008 | 11:46 am

Blackstone says U.S. action could crack the crisis

DUBAI (Reuters) - Blackstone Group chief executive Stephen Schwarzman said on Tuesday the injection of government cash into U.S. banks, alongside similar measures around the world, could break the back of the credit crisis.

Source: Reuters: Business News | 14 Oct 2008 | 11:44 am

General Motors says bankruptcy not an option

DUBAI (Reuters) - General Motors said on Tuesday bankruptcy for the firm is not an option and called for coordinated federal action to assist the ailing U.S. automobile industry.

Source: Reuters: Business News | 14 Oct 2008 | 11:43 am

Apple's holiday challenge - beating Dell

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 11:42 am

Alternative Investment Expert Gordon 'Grant' Curtis to Speak at Monaco Investment Summit, Oct. 27, 2008

A veteran of double-digit returns in turbulent markets to counsel responsible investment outlook for short- and long-term profits MONACO, Oct. 14 /PRNewswire/ -- Gordon
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:41 am

U.S. to pump $250 billion into banks (Reuters)

Reuters - The United States will pump $250 billion into its banks on Tuesday, following similar measures in Europe, but data showed the threat of recession has not been banished even if a financial sector meltdown has.

Source: Yahoo! News: Business | 14 Oct 2008 | 11:37 am

JJB sells off lifestyle business for £20m

JJB Sports, the retailer, is offloading its Lifestyle division for £20m to a trade rival.
Source: Latest Business News from Times Online | 14 Oct 2008 | 11:33 am

Selective Insurance Group Announces Third Quarter Catastrophe Loss Estimates; Investment Income Update

BRANCHVILLE, N.J., Oct. 14 /PRNewswire-FirstCall/ --- Selective Insurance Group, Inc. (Nasdaq: SIGI), today announced preliminary third quarter 2008 catastrophe (CAT) losses, the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:33 am

XL Capital Ltd Announces Preliminary Estimates of Third Quarter 2008 Results

- Estimated net loss to ordinary shareholders of $1.65 billion to $1.67 billion or a net loss of $6.08 to $6.17 per ordinary share. This includes the following previously announced...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:31 am

Atlanta Software Veterans Join Forces to Launch New Venture Capital Firm

Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:30 am

Knight Introduces NetDelta(TM) Settlement Platform for the Credit Derivatives Market

NetDelta addresses inefficiencies and risks inherent to the OTC derivatives market JERSEY CITY, N.J., Oct 14 /PRNewswire-FirstCall/ -- Knight Capital Group, Inc....
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:30 am

Lorillard to Release Third Quarter 2008 Results on Monday, October 27, 2008

GREENSBORO, N.C., Oct. 14 /PRNewswire-FirstCall/ -- Lorillard Inc., (NYSE: LO), the third largest manufacturer of cigarettes in the United States, today announced that it will...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Oct 2008 | 11:30 am

All the Way to the Banks

With a $250 billion investment in the nation’s banks, Washington has crossed a Rubicon, abandoning any hope for a private market solution to the credit crisis. This is a new era of state capitalism.

Yet capitalists and markets are hailing the move, which comes on the heels of $2.5 trillion in bank cash infusions by European governments, seeing it as the only hope to stop a collapse of the financial system

“We're looking today at an absolute sea change in the global financial system in terms of liquidity,” Stephen Schwarzman of Blackstone Group told a conference in Dubai today, according to Bloomberg News. “This could be the time that breaks the back of the credit crisis.”

U.S. stock index futures are poised for another powerful jump when markets open. Japanese stocks surged 14.15 percent, its biggest gain ever. Hong Kong stocks climbed 3.19 percent. European markets were up more than 4 percent at midday. Credit markets eased, with the dollar Libor rate slipping a bit.

President Bush outlined this morning steps to help the banking system. Treasury  plans to inject $250 billion into the nations' banks. About half will be invested into nine: Citigroup, Bank of America, Wells Fargo, J.P. Morgan Chase, State Street, and Bank of New York Mellon, as well as Merrill Lynch (which is being acquired by Bank of America), Morgan Stanley, and Goldman Sachs, which are now bank holding companies.

"This is an essential short-term measure to ensure the viability of the American banking system,” the president said.

The president also said that the Federal Deposit Insurance Corp. would temporarily guarantee interbank lending, which should further unfreeze short-term credit. The F.D.I.C. will also cover all non-interest-bearing accounts that are used by small business.  And the Federal Reserve will complete work on a  new program to be a buyer of last resort for commercial paper

President Bush made stressed that the crisis was a temporary one and a global one, hailing the steps by Britain and other European governments to shore up their banks. They are “wise and timely actions,” he said.

The nine U.S. big banks were told about their cash infusions at a sit-down with Treasury Secretary Hank Paulson on Monday. The banks were reportedly not given a choice.

The rest of the $250 billion will go into smaller banks and savings and loans. The money is coming from the $700 billion Troubled Assets Relief Program.

The government will do make these investments by taking perpetual preferred shares that pay a dividend.  These shares will not dilute common shareholders.

Many economists have been calling for a recapitalization of the banks, providing new capital and bolstering their balance so that they can return to lending. 

At the same time, the Federal Deposit Insurance Corp. will temporarily guarantee interbank lending, which should further unfreeze short-term credit.

“The government's initial $250 billion dollar investment in the countries largest banks will be significant in that it will dramatically strengthen the balance sheets of the companies that hold the vast majority of the banking systems assets and deposits,” notes the Prudent Speculations blog.

But everyone may not be on board. Paulson is expected to ask Congress for another $100 billion, the Washington Post reports.

"When I was talking to members of Congress back then, they believed they were voting to buy up troubled assets, not to make capital infusions in banks," Alan Blinder, a Princeton economist and a former Fed vice chairman told the paper. "If I were a member of Congress, I would be wondering about bait and switch because that was not really discussed."

Yves Smith on Naked Capitalism wonders how arms at the banks were twisted: “Even with the Treasury's sweeping new powers under the $700 billion rescue package, one wonders how it compelled banks to cooperate. The process by which this was done is alarming.”

Related Links
Hit the Panic Button
Will $700 Billion Be Enough?
TARP for CP


Source: Portfolio.com: Top 5 | 14 Oct 2008 | 11:30 am

Shares rise as confidence returns

Stock markets in Asia and Europe power ahead, as investors welcome government action to shore up banks.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 11:24 am

Bad Start For Earnings: Pepsi (PEP) Tanks

The early wave of third quarter earnings stepped on a banana. Pepsi (PEP) numbers were awful and they cost a lot of people their jobs.

Globally, approximately 3,300 positions will be eliminated in connection with the productivity program, of which about 40 percent relate to the closing of up to six plants and other capacity rationalization actions.

While revenue rose from $10.2 billion to $11.2 billion, net income fell from $1.743 billion to $1.576 billion.

In the pre-market, Pepsi shares indicated that they would trade down at the open.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Oct 2008 | 11:22 am

Global markets rally ahead of $250bn US rescue package

Stock markets in Asia and Europe surged on Tuesday after a historic rally on Wall Street saw US markets record their biggest rebound since the 1929 Great Crash after investors welcomed a pledge by European...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 11:20 am

Bellway stays in the black with home incentives

The number of new homes sold by Bellway, the construction company, fell sharply this year but incentives such as cash discounts and stamp duty subsidies helped to prevent a further sharp declines.
Source: Latest Business News from Times Online | 14 Oct 2008 | 11:19 am

No legal case against Rock bosses

Nationalised lender Northern Rock says it will not take legal action for negligence against those in charge before its collapse.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 11:18 am

Germany 'on brink of recession'

Germany's economy is heading for recession and will only expand by 0.2% in 2009, the country's four leading economic think tanks warn.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 11:15 am

Icelandic stock exchange reopens

Trading resumes on the Icelandic stock exchange for the first time since its suspension last Thursday.
Source: BBC News | Business | World Edition | 14 Oct 2008 | 11:06 am

Posco quarterly profits jump 40%

Posco, the world's fourth-largest steelmaker, on Tuesday reported a 40 per cent jump in third quarter profits but warned that falling demand for steel products would make conditions tougher going forward...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 10:49 am

Time For Google (GOOG) To Dump Yahoo! (YHOO) Deal

Yahoo! (YHOO) needs the deal for Google (GOOG) to sell search advertising for the portal company more than Google needs it. The world's largest search firm may make a modest sum off its commissions from the partnership, but given Google's size it is not likely to have much of an effect.

On the other hand, Yahoo! was able to keep itself out of the clutches of Microsoft (MSFT) to some extent because it said that it could make several hundred million extra dollars by outsourcing part of its sales effort to its larger search rival.

The Justice Department and major advertisers do not buy into the Yahoo! view of the world. Having the two largest search companies in American sharing a sales operation might be anticompetitive. Having such a big slice of the pie could lead to higher advertising rates.

Justice appears anxious to go after the partnership in earnest. According to The Wall Street Journal, "investigators are continuing to build a lawsuit to block the deal, worried it would give Google too much power in online advertising."

Google would be best off to quietly walk away, It does not need lawyers from Washington working through it underwear drawers. With almost 70% of the search market, Justice may decide it wants to spend more time with Google's pricing operations whether Yahoo! is involved or not.

Google has a great deal to lose by moving forward with its Yahoo! contract. It can afford to abandon the deal. Yahoo! can't do without it, but that won't matter.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Oct 2008 | 10:41 am

General Motors says bankruptcy not an option (Reuters)

Reuters - General Motors said on Tuesday bankruptcy for the firm is not an option and called for coordinated federal action to assist the ailing U.S. automobile industry.

Source: Yahoo! News: Business | 14 Oct 2008 | 10:30 am

Merck (MRK): More Trouble With Vioxx

A lot of people believe that Merck (MRK) knew a lot more about the dangers of its arthritis drug Vioxx than the company ever let on. Heart problems were apparently a by-product of using the treatment.

An affirmation of Merck's possible guilt was the $4.85 billion that it paid to settle a number of Vioxx suits. But, the fun may not be over.

According to Reuters, "A long-term analysis of people who took the arthritis drug Vioxx confirms it doubles the risk of strokes and heart attacks." Merck will probably say it did not know much about that, but presumably it does road test its own drugs.

The suits over Vioxx seemed to be dying down. That is not going to continue.

Douglas A. McIntyre

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

What do traders actually do?

An inside view of a day on the trading floor of a busy City stockbroker, as the Government's bailout of the financial system puts bankers in a poor light.
Source: Latest Business News from Times Online | 14 Oct 2008 | 10:21 am

Earnings On Deck: Only Nine Companies Will Matter

Analysts assume third quarter earnings for the companies in the S&P 500 will be bad. But, looking at the number which is the average of all firms in the index is misleading. The market will be watching the numbers for and forecasts from nine companies. They are likley to drive the stock indexes up or down more than numbers from almost any other firms. They are, in essence, all that counts in determining how badly the recession is taking a toll on American business.

Google (GOOG) will be the proxy for the online world, all e-commerce, text and display advertising, and the extent to which an industry which has enjoyed extraordinary revenue growth can keep it up. Its numbers will also say a good deal about the strength or weakness, of media and advertiser firms. Analysts expect to see the company grow at 35% or so, and keep its costs down. If that does not happen, Google drags down one most important engines of the economy. Its numbers could hit companies from Time Warner (TWX) to Yahoo! (YHOO) to Amazon (AMZN)

Micrososft (MSFT) is so large that it is the only other important tech bellwether. It has a vast enterprise business, a huge server software operation, and an operating system which runs over 90% of the world's PCs. If it signals a substantial slowing of the growth in its core business, that ripples out to almost every other software and IT hardware firm both in the US and abroad. Dell (DELL), Intel (INTC), and all their peers move as Microsoft moves

Procter & Gamble (PG) is supposed to be recession-proof. It sells necessities from soap to razors. The market's theory about the company is that it will dodge even a sharp drop in GDP. If P&G posts tough numbers and says it has poor expectations for next year, the entire sector for consumer goods will take a significant hit. The numbers will hurt or help companies such as J&J (JNJ), Colgate (CL), and a number or retailers.

Exxon Mobil (XOM) will show the market how badly the falling price of oil has compromised earnings at oil firms and operations which supply the tools and consulting for exploration and production. The company will also post forecasts based on the price of oil going into 2009. If Exxon warns, a dozen of the largest market cap stocks in the US will be pounded. Chevron (CVX) to Halliburton (HAL) will be also be hurt.

Citigroup (C) is viewed as the weakest of the large US banks and thus the most susceptible to more huge write-offs. With housing prices still dropping and mortgage-based paper probably falling in value, Citi is a nearly perfect indication of how bad that part of the financial world will get. Its vast network of retail branches, credit cards accounts, and auto loans will say a great deal about how the consumer is holding up. Its commercial and investment banks should give an indication of the value of LBO loans and whether there are significant defaults on loans to corporations. The waves from this could hit Morgan Stanley (MS), Bank of America (BAC) and most other firms in the sector.

Ford's (F) earnings figures have an effect for hundreds of companies beyond the car company. GM (GM) is only one of those. Auto suppliers to steel and aluminum firms rely on Ford. So does a great deal of the transportation industry and the part of the financial sector where earnings are driven by consumer credit. If the Ford forecast for 2009 is poor, the question of whether American car companies are viable will be raised again.

Pfizer's (PFE) share price is based on the assumption that the public needs pharma products if people have money or not. Drugs which are critical to health are critical to people even if they are barely hanging on financially. If Pfizer's numbers are weak they pull down Big Pharma, biotech, hospital, and medical supply company shares. Shareholders from companies as diverse as Genentech (DNA) and Bristol-Myers (BMY) will watch these numbers.

Verizon (VZ) earnings cover three sectors. One is the cellular market, which has seen very little slowing of growth. If those numbers are running bad, the ripple go beyond carriers to handset companies, chip suppliers and companies which make infrastructure for telecom. The Verizon landline business will tell a great deal about whether the average consumer is shutting off his phone service due to a hard economy. Verizon's new fiber-to-the-home TV and broadband services will effect cable, telecom, and telecom suppliers. From AT&T (T) to Comcast (CMCSA) to Oracle, Verizon has an impact

Wal-Mart (WMT) is not only the largest company in the US. Its earnings are watched by smaller retailers, suppliers, and manufacturers in China. If the firm warns that its same store sales and revenues will fall off in the US and overseas companies from Sears (SHLD) to Sony (SNE) will feel the impact.

GE (GE) has already reported. It met expectations and was rewardrf. The rest of the parade needs to do as well, of the market will sell off again.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Oct 2008 | 10:16 am

Apple notebooks: Timeline

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 10:13 am

JCDecaux drops plan to buy Murdoch business

JCDecaux, the French advertising group, on Tuesday abandoned exclusive talks with Rupert Murdoch over the purchase of his emerging markets billboard business, citing market conditions."Both companies recognise...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 10:09 am

Robert Peston

There's a chance that RBS might not be nationalised
Source: BBC News | Business | World Edition | 14 Oct 2008 | 9:57 am

Automakers could return to Congress for help

WASHINGTON (Reuters) - U.S. automakers could turn to Congress after the November election to try to expedite $25 billion in government-backed loans, which Detroit manufacturers consider crucial to reversing their steep downward spiral.

Source: Reuters: Business News | 14 Oct 2008 | 9:49 am

Paulson's New Plan: The Good Guys Get Gored (JPM)(MS)(GS)(C)

One size fits all. That is the reasoning behind Treasury's plan to invest money in a number of large banks by purchasing preferred shares.

Jamie Dimon of JP Morgan (JPM) and Lloyd Blankfein of Goldman Sachs (GS) have to feel that they have been sacrificed on Henry Paulson's bank bailout altar. Healthy financial companies are being told that they must take on the burden of new debt, whether they want it or not. Whether they need it or not.

The new program will put $250 billion in cash directly into banks and Treasury will get an equity piece. The agency is using preferred shares so that current holders of common stock are not diluted.

The plan has one very deep flaw. JP Morgan has to take on $25 billion which is the same amount as its much weaker rival Citigroup (C). The market certainly views the risk presented by the two companies differently. Since the beginning of the year JPM shares are flat. Citi is off more than 45%.

A look at Goldman Sachs and Morgan Stanley (MS) is also a study in contrast. Goldman is down less than 50% since January 1. Even with a huge rally in its shares yesterday, Morgan has fallen nearly 70% during the same period. Paulson is force feeding $10 billion into each institution, although one is almost certainly healthier than the other.

Treasury would make the argument that time is short. It may only have a few days to restore confidence in the banking system. Cutting the healthy cattle out from the herd would take too much time.

But, that reasoning is feeble-minded. Money raised by JPM has put its capital position, based on its Tier 1 ratio, at over 8%. The market expects more write-offs at Citigroup than it expects at JP Morgan.

Banks do have relatively standard measurements of health. While these may not be perfect, they are almost always directionally correct.

Paulson has done the best banks and brokerage firms a disservice. He has also undermined his own program. While $700 billion is a lot of money, there is still not enough to go around given how deeply wounded the banking system is. He could have saved the money he is putting into the healthy and used it for the sick.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Oct 2008 | 9:37 am

The hassle-free holiday flying guide

Santa's got a good thing going travelwise, what with that high-speed reindeer-powered sleigh that takes him to every chimney on the globe in mere hours - no layovers, no delays and no shortage of under-seat storage. You might want to thumb a ride with the old boy, in fact, because flying the nonfiction way isn't going to be so jolly this holiday season.

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 9:26 am

Fortis shares plunge as trading resumes

AMSTERDAM, Oct 14 - Fortis outlined a drastically reduced business structure after its carve-up and nationalisation, and asked on Tuesday to be exempt from reporting its forthcoming quarterly results.Its...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 9:09 am

Asian stocks soar after U.S. rally

HONG KONG -- Asian markets soared for a second day Tuesday, led by a record 14 percent jump in Tokyo, after Wall Street rallied from its worst week ever on optimism that government rescue efforts will heal the crippled global financial system.

Source: L.A. Times - Business | 14 Oct 2008 | 8:55 am

Asian stocks soar after U.S. rally

HONG KONG -- Asian markets soared for a second day Tuesday, led by a record 14 percent jump in Tokyo, after Wall Street rallied from its worst week ever on optimism that government rescue efforts will...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 8:55 am

Rumours swirl over which banks want help

As France's top bankers go to the Elyse palace on Tuesday morning to see President Nicolas Sarkozy, the question is which banks will ask for a share in the 40bn of capital funding the government announced...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 8:50 am

Cadbury to cut further 580 jobs

Cadbury on Tuesday announced a further 580 job cuts as part of a cost saving plan announced last year. The "vision into action" plan envisaged reducing the group's 50,000 headcount by 7,500. The confectioner...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 8:48 am

Rising gas bills send inflation to 16-year high

Inflation surged to 5.2 per cent during September as households were forced to cope with rising gas and electricity bills.
Source: Latest Business News from Times Online | 14 Oct 2008 | 8:35 am

Talks to end 5-week Boeing strike break down

Boeing Co. says renewed negotiations with its striking machinists broke down over an issue crucial to the company's "long-term competitiveness." A labor leader says the union was being asked to bargain away 2,000 jobs.

Source: Business and financial news - CNNMoney.com | 14 Oct 2008 | 8:18 am

Former AIG chief offers alternative rescue plan: report

(Reuters) - Hank Greenberg, former Chief Executive of American International Group Inc will soon release a plan outlining an alternative way to save the stricken insurer that was rescued by the U.S. government last month, the Financial Times said.

Source: Reuters: Business News | 14 Oct 2008 | 7:54 am

Media Digest 10/14/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, the Treasury will make $250 billion directly into banks. Ciitgroup (C) and JPMorgan (JPM) would get $26 billion each. Merrill Lynch (MER) and Bank of America (BAC) would each get $12.5 billion.

Reuters reports that auto companies could return to Congress for help.

Reuters said Bernanke commented that the US plan should help revive credit markets.

Reuters writes that Legg Mason (LM) has set up a unit to look at distressed debt.

Reuters writes that JC Penney (JCP) may launch its own apparel line.

Reuters reports that Boeing's (BA) latest talks with it machinists union failed.

Reuters reports that a long-term study shows that Merck's (MRK) Vioxx can be a threat to the heart.

The Wall Street Journal reports that many funds are moving money into cash, a bearish sign.

The Wall Street Journal reports that Morgan Stanley (MS) will shrink some of its high-risk businesses.

The Wall Street Journal reports that Google (GOOG) and Yahoo! (YHOO) are in talks with Justice to avoid an antitrust suit.

The Wall Street Journal reports that Sovereign Bancorp agreed to sell itself to Banco Santander for $1.9 billion in stock.

The Wall Street Journal writes that GM (GM) will close more plants and further limit spending.

The Wall Street Journal reports that debt pressure have forced Sumner Redstone to sell some of his positions in CBS (CBS) and Viacom (VIA).

The Wall Street Journal writes the the one-day rally may not free up credit as the economy moves into a deep recession.

The Wall Street Journal reports that the leveraged-loan market is under pressure and that may hurt large private equity firms.

The Wall Street Journal reports that Honda (HMC) will cut its SUV output.

The Wall Street Journal reports that IBM (IBM) will expand facilities in China.

The New York Times writes that commodities prices have dropped sharply as markets have fallen.

The New York Times writes that the role of Chrysler owner Cerberus is critical in its talks with GM (GM)

The New York Times reports that $11 billion in M&A deals were recently canceled.

The New York Times reports that sovereign funds are hoarding cash.

The FT reports that Japan announced a plan to steady its credit markets.

The FT writes that Citigroup (C) has moved to stop in-fighting among its executives.

The FT reports that Hank Greenberg, former chief executive of AIG, will launch an alternative plan to save the company.

Bloomberg reports that British home sales dropped to their lowest level in 30 years.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Oct 2008 | 7:52 am

Cadbury warns of rising chocolate prices

Cadbury, the British confectionery giant, announced today that 250 jobs will go as part of a cost-cutting programme and warned that the price of chocolate will rise next year due to higher commodity prices.
Source: Latest Business News from Times Online | 14 Oct 2008 | 7:41 am

U.S. to pump $250 billion directly into banks

Shifting its focus from buying bad assets, the administration also decides to expand federal insurance protection. The Dow leaps 936 points, a record one-day gain, on hopes of a thawing of credit.

In a major strategic shift, the Bush administration has decided to pour at least $250 billion directly into major banks and expand federal insurance protection to encourage financial institutions to resume lending to one another.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Redstone's firm sells $233 million worth of stock in Viacom, CBS

The billionaire dumped the shares to raise cash to comply with debt agreements.

Billionaire Sumner Redstone's National Amusements Inc. said Monday that it had sold $233 million worth of stock in Viacom Inc. and CBS Corp. to raise cash to comply with debt covenants -- $167 million less than the company said three days earlier that it would need.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Sweeping bank bailouts unite Europe

Governments, done with squabbling, unveil packages that surpass $2 trillion. Britain puts demands on recipients.

Like soldiers falling into step, governments across Europe offered up a series of sweeping bailout plans for their banking systems Monday, pushing past $2 trillion the amount of taxpayer money that has been pledged to shore up the continent's floundering financial sector.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Paul Krugman wins the Nobel economics prize

The New York Times columnist and Princeton University professor wins for his study of international trade and the effects of globalization.

Paul Krugman occupies two spheres in the American intelligentsia. In one, he is a New York Times op-ed columnist known for his barbed opinions about President Bush's policies. In the other, he is a Princeton University economist famous for his research on international trade and finance.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Naming rights could turn Dodger diamond into gold

The stadium won t get a new moniker, but the bullpens might.

Welcome to Dodger Stadium! Come see the pitchers warm up in the Red Bull Bullpen. Sit in the Bicycle Playing Cards top deck! Leave your car in the Hertz garage for preferred parking, or the Avis lot, where they try harder to find you a spot.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Dow posts biggest one-day point gain in history

The huge rally comes after central banks worldwide pledge to prop up the global banking system.

Can it last?

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Universal Pictures to distribute DreamWorks films

Steven Spielberg and partner Stacey Snider s ambitious plans to fund their new studio have been slowed by the global credit crisis.

In a move that brings Steven Spielberg closer to reestablishing his independence, Universal Pictures will distribute the movies produced by the filmmaker's new DreamWorks studio. However, Spielberg and partner Stacey Snider's ambitious plans to fund their venture have been slowed by the global credit crisis.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Retailers cutting back on holiday hiring

With bleak sales numbers expected, there'll be fewer jobs and more competition for them.

With Christmas fast approaching, Molly Oswaks has checked out stores in the Grove shopping center, boutiques in Larchmont Village and shops along 3rd Street. All across Southern California and the country, the search is on -- not for the perfect gift but for holiday jobs.

Source: L.A. Times - Business | 14 Oct 2008 | 7:00 am

Dow posts biggest one-day point gain in history

The huge rally comes after central banks worldwide pledge to prop up the global banking system. Can it last?
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 7:00 am

Sweeping bank bailouts unite Europe

Governments, done with squabbling, unveil packages that surpass $2 trillion. Britain puts demands on recipients. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 7:00 am

Retailers cutting back on holiday hiring

With bleak sales numbers expected, there'll be fewer jobs and more competition for them. With Christmas fast approaching,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Oct 2008 | 7:00 am

J.C. Penney to launch apparel line: report (Reuters)

Reuters - Mid-tier retailer J.C. Penney Co Inc is expected to announce a new line of moderately-priced women's apparel later on Tuesday, the Wall Street Journal said.

Source: Yahoo! News: Business | 14 Oct 2008 | 6:05 am

NZ stocks: Shares climb nearly six per cent

The sharemarket gave up some of its early gains but still managed to close up 6 per cent, as investors flocked back to the sharemarket. Confidence returned to markets around the world as investors took heart from authorities' pledges...
Source: New Zealand Herald - Business | 14 Oct 2008 | 5:57 am

Currency: Dollar strengthens as investors return

The New Zealand dollar continued to strengthen against major currencies today as investors began seeking risk again, although it weakened further against its Australian counterpart. By 5pm, the kiwi was at US62.28c from US59.80c...
Source: New Zealand Herald - Business | 14 Oct 2008 | 5:55 am

Japan unveils measures to support stock market (AFP)

AFP - Japan announced a package of measures Tuesday aimed at supporting the ailing stock market, including a loosening of restrictions on companies buying back their own shares.

Source: Yahoo! News: Business | 14 Oct 2008 | 4:31 am

Great day for NZX continues - market up 5.9pc

Investors have flocked back to the New Zealand sharemarket today after last week's panic selling, boosting the top-50 index by nearly 6 per cent following a large rebound in global stocks. Confidence returned to markets around...
Source: New Zealand Herald - Business | 14 Oct 2008 | 4:30 am

Home affordability up as rates fall, house values flatten

Falling interest rates and flat house prices pushed home affordability to a two-year high in September, a new survey shows. And the situation for house buyers is likely to improve further this year with tax cuts from the start...
Source: New Zealand Herald - Business | 14 Oct 2008 | 4:00 am

Inducing the Labor Vote

For the past 26 years, I have grudgingly learned that union members don't always vote in their own economic interests, what labor folks call "voting your paycheck."  

Right now, however, the economy and paychecks are center stage, and this year's exceptionally close, historic election will ultimately be decided by working- and middle-class Americans. They are, after all, the deciding demographic in the few remaining battleground states.

One main hurdle for both candidates will be to sway "Hillary voters," those who supported Clinton over Barack Obama by a 2 to 1 margin in the primaries. 

So how can Obama and John McCain win the critical labor vote?

Understand to Whom You Are Speaking. All workers, including union members, are facing increasingly desperate economics times. The fear-inspiring financial meltdown, disappearing jobs, home foreclosures, and shrinking net incomes make them want change, and fast. Every major labor organization has endorsed Obama. That makes McCain's bar, as a candidate from the party that created the crisis, even higher.

Talk about Jobs. Following nine straight months of job loss— 159,000 jobs gone in September alone—workers are scared to death of losing their jobs and homes or have already lost them and are suffering. Investing in America's infrastructure—roads, bridges, schools—and accelerating funding for green energy production will mean more jobs with a living wage. Keeping jobs here in America by eliminating tax breaks for companies sending jobs overseas will give workers a beacon of hope.

Do Something Real About Health Care. More working Americans, 45 million, are going without health care, and some have been bankrupted by a system that makes being sick a financial death sentence. Protecting employer-based health-care plans, insuring retiree health care, and guaranteeing full coverage to each and every American is key. No gimmicks or jargon.

Make it possible to retire with dignity. As companies abandon pension plans and the value of workers' 401ks drop, retiring with dignity is becoming impossible for most working Americans. Expanding Social Security and Medicare, not moving to private retirement accounts subject to the stock market's whims, and bailing out the working and middle class by protecting their pensions and savings reinforces the safety net.

Straight Talk about Taxes. Paying for taxes and how taxes are spent are key issues to working people. McCain has an easier task if he continues to mine the myth that Democrats favor increasing taxes and building big government. Obama needs to hammer home that his tax plan will help support the much-needed social programs used by working families, and remind workers that Republican overspending got us into this fix.

 Support the right to organize a union. The American social compact is broken and needs to be restored. A sustainable, stable, and fair economy is based on all workers receiving a fair wage. Stronger unions are key to making that a reality. Without passage of the Employee Free Choice Act (E.F.C.A.), and renewed growth through organizing, the private sector unionization rate, now at an anemic 7 percent, will plummet further. A candidate for E.F.C.A. has won half the battle. Unlike McCain, Obama has voted in favor of E.F.C.A. and promises to sign it into law as president.

Help working families send their children to college. Without realistic tax credits for working families and an easier financial-aid process, the success guaranteed by a college education is unattainable. The candidates also need to focus on reliable lending programs for young people.

Support Equal Pay for Equal Work and Paid Family Leave. Working women deserve pay equity and all workers need family-friendly policies to help balance their work and home lives. Barack Obama supports equal pay for equal work and has vowed the full adoption of paid-leave systems, pledging to create a $1.5 billion fund to assist all 50 states with costs-incurred. John McCain has opposed pay equity measures in the Senate, saying he believes women simply need more training to achieve equal pay. While McCain supported the unpaid Family and Medical Leave Act in 1993, he opposes the expansion of coverage.

Favor ending Iraq War. There is no other issue, with the exception of the economy, that has consumed working Americans more than the Iraq war. The human toll, directly affecting the children and relatives of these voters, as well as the economic toll, has been staggering. A candidate not advocating withdrawal is, in effect, continuing to cause irreparable harm.

Walk in workers' shoes. The enormous personal success enjoyed by both candidates is not palatable to folks wondering how to put food on the table or meet their monthly mortgage payments. Bailing out banks and Wall Street is not enough. Homeowners need direct help just to keep their homes. The candidates need to demonstrate that they have real solutions to very real problems, spend time with workers in their communities and show that they understand and prioritize the struggles of working Americans.

---

Carla Katz is the former president of Local 1034 of the Communications Workers of America, the group's largest in the country. Katz also blogs for the Star-Ledger at www.njvoices.com and for the state's largest political website, Polickernj.com at www.politickernj.com. She is also listed as an expert on the innovative video-based website www.bigthink.com.
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Source: Portfolio.com: Top 5 | 14 Oct 2008 | 4:00 am

Conservative KiwiSaver options deliver best returns

The most conservative KiwiSaver funds largely posted positive returns in the last year amid market declines, while the most aggressive performed the worst, researcher Morningstar said. The introduction of KiwiSaver has coincided...
Source: New Zealand Herald - Business | 14 Oct 2008 | 3:30 am

London and Asia continue global share rally

Shares in London rose by over 6 per cent in mid-morning trading following record-breaking gains in Asia earlier today as the US prepared to follow Britain by buying stakes in struggling banks.
Source: Latest Business News from Times Online | 14 Oct 2008 | 3:23 am

(T)Hanks Partner

Treasury Secretary Hank Paulson had a sit-down with the nation’s banking chiefs Monday and made them an offer they couldn’t refuse—a total cash injection of about $250 billion into their embattled institutions.

Coming on a day when the Dow Jones Industrial Average turned in its largest ever point gain—up 936 points, or 11 percent—the government continued its push to provide a foundation to rescue for the nation’s battered financial system.

The money used to bolster the banks’ finances—which was described by the New York Times as a one-time, non-voluntary offer—is coming from the $700 billion authorized for Troubled Assets Relief Program (TARP).

According to the Wall Street Journal, Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. (which is acquiring Merrill Lynch), Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon and State Street.

Paulson’s plan follows the lead of European central banks, which began moving in that direction during the weekend, and is in a direction he rejected just two weeks ago in favor of buying troubled assets from the banks.

"The consensus was so strong towards direct equity injections that there was literally no dissension on the point," said one of the invited economists, Jared Bernstein of the liberal Economic Policy Institute told the Journal. "The only head-scratching is, why did it take us so long to get here?"

The Times noted that shares will not be dilutive to current shareholders because the perpetual preferred stock Treasury is buying pays holders a dividend, not a portion of earnings.

Treasury will buy $25 billion in preferred stock in Bank of America, J.P Morgan and Citigroup; between $20 billion and $25 billion in Wells Fargo; $10 billion in Goldman and Morgan Stanley; and between $2 billion and $3 billion in Bank of New York Mellon and State Street. It was unclear whether the Bank of America stake included Merrill, which the bank has a deal to acquire, the Journal reported.

Treasury officials have acknowledged the importance of taking equity stakes without diluting existing shareholders or discouraging outside investments. Britain, on the other hand, did not protect shareholders of Royal Bank of Scotland, HBOS, and Lloyds with its $64 billion capital injections this morning. As a result, shares in those banks plummeted today while the broader stock indexes all surged.

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Source: Portfolio.com: Top 5 | 14 Oct 2008 | 3:00 am

Muir tweaks role at Pumpkin Patch

Greg Muir is stepping down as Pumpkin Patch's wholesale division executive chairman, although he will remain chairman, the company said today. The interim position was established in 2004 to boost the wholesale division while the...
Source: New Zealand Herald - Business | 14 Oct 2008 | 2:30 am

Australian stocks: ASX joins the buoyant mood

The Australian share market jumped higher for the second day after the US and European governments moved to guarantee banking systems, lifting investor confidence. US stocks gained overnight, with the three major indices each rising...
Source: New Zealand Herald - Business | 14 Oct 2008 | 1:15 am

Trends & Innovations - Monday

Police tap mobile finger scanners
Source: Investor's Business Daily: BUSINESS | 14 Oct 2008 | 12:32 am

After The Close - Monday

WYNN RESORTS (WYNN), the casino operator, said Q3 results in Las Vegas will range from a $2 mil operating loss to a $2 mil gain, well below the...
Source: Investor's Business Daily: BUSINESS | 14 Oct 2008 | 12:32 am

Maker Of Defense Electronics, Water Pumps Taps Resilient Markets

As a multibillion-dollar company that makes diversified products for defense and water industries, ITT Corp. is more immune from economic turmoil...
Source: Investor's Business Daily: BUSINESS | 14 Oct 2008 | 12:32 am

In Brief - Monday

Tiffany (TIF), a jewelry retailer, rose after S&P upgraded it to hold from sell, saying the retailer's strong brand will mitigate weakness in...
Source: Investor's Business Daily: BUSINESS | 14 Oct 2008 | 12:32 am

Business Briefs - Monday

Santander may buy out Philly bank. Spain's largest bank confirmed it is in talks to buying out Sovereign Bancorp SOV, a Philadelphia thrift in...
Source: Investor's Business Daily: BUSINESS | 14 Oct 2008 | 12:32 am

Property trust explores merger, liquidation

The manager of listed National Property Trust says discussions have started with several parties as a possible merger of property portfolios is considered. Kevin Podmore, chairman of manager National Property Trust Ltd (NPTL),...
Source: New Zealand Herald - Business | 14 Oct 2008 | 12:30 am

Santander to bail out Sovereign

Santander of Spain, the biggest bank in the eurozone, agreed to buy the rest of Sovereign Bancorp of the US for a tenth of the price agreed when it took a minority stake three years ago
Source: FT.com - US homepage | 13 Oct 2008 | 11:38 pm

Ford Australia slashes jobs

Ford Australia is to cut another 500 jobs from its Victorian workforce as slow sales, high fuel prices and its troubled US parent continue to bite hard on its bottom line. Both manufacturing and office workers would be laid off...
Source: New Zealand Herald - Business | 13 Oct 2008 | 11:30 pm

Spanish bank to buy Sovereign for $1.9 billion

Spanish bank Banco Santander, S.A. will acquire Sovereign Bancorp in a stock-for-stock transaction valued at about $1.9 billion, the companies announced Monday.

Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 11:13 pm

Bankers: No one likes them and we don't care

There used to be a reliable pecking order of professions that were held in public disregard. Bankers attracted little sympathy but retained a certain mystique. Politicians and journalists were still less respected. Estate agents came beneath the lot. The past few weeks have overturned the rankings. No group attracts greater derision and outrage than profligate banking executives.
Source: Latest Business News from Times Online | 13 Oct 2008 | 11:00 pm

All smiles on Wall St - record 11pc surge

NEW YORK - Wall Street has stormed back from last week's devastating losses, sending the Dow Jones industrials soaring a nearly inconceivable 936 points after major governments' plans to support the global banking system reassured...
Source: New Zealand Herald - Business | 13 Oct 2008 | 11:00 pm

Ranking Free Online Personal Shoppers (Deal of the Day)

Shopping for presents on a tight budget? We put four gift-picking sites to the test.

Source: SmartMoney.com | 13 Oct 2008 | 10:28 pm

Unconventional Wisdom: Stocks Are On Sale (SmartMoney Magazine)

No one knows where the bottom is, but stocks look awfully cheap.

Source: SmartMoney.com | 13 Oct 2008 | 10:25 pm

Goldman Sachs applies for N.Y. bank charter

Recently minted commercial bank Goldman Sachs Inc. has applied for a New York state banking charter, state officials said Monday.

Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 10:15 pm

History Shows Bear Markets Don't End Overnight (Ticked Off)

Enjoy the rally while you can. History shows we're in for a long road to recovery.

Source: SmartMoney.com | 13 Oct 2008 | 9:42 pm

Cellist Yo-Yo Ma, Lennon Biography, Actress Anne Hathaway

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 9:37 pm

Financial Crisis Answer Center (Ask SmartMoney)

We answer your questions about the markets and your finances.

Source: SmartMoney.com | 13 Oct 2008 | 9:37 pm

Swiss Asia's Kiener Says Gold ETFs Risky Investment

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 9:25 pm

ETFs Rally on Historic Market Rise (Daily ETF Wrap-Up)

A record day for the Dow bolstered most exchange-traded funds.

Source: SmartMoney.com | 13 Oct 2008 | 9:15 pm

Today's 3 Picks: MS, RBS, CHK (Market Movers)

Morgan Stanley turns to Japanese. U.K. rescues RBS. Chesapeake feels gas pains.

Source: SmartMoney.com | 13 Oct 2008 | 9:11 pm

Fortune 500: Who's up, down and gone

Stocks are getting socked this year, but investors are loving these 20 big companies. See who's up the most, who's down the most and why the list is shrinking fast.

Source: Business and financial news - CNNMoney.com | 13 Oct 2008 | 8:55 pm

VIX Index of U.S. Stock Option Prices Retreats 21.4% to 54.99

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 8:51 pm

McCain's Holtz-Eakin, Obama's Furman Discuss Economic Plans

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 8:31 pm

IMF's Blanchard Sees 0% Growth in 2009 for Advanced Economies

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 8:30 pm

Trennert Says Credit Access `Semi-Permanently Impaired'

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 8:23 pm

Dow Surges 936 Points

The index returned above the 9000-point mark as traders welcomed action in Europe and at home.

Source: SmartMoney.com | 13 Oct 2008 | 8:19 pm

Ryding, Shiller, Mayer on Inter-bank Lending, Krugman's Nobel

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 8:15 pm

MUFG deal boosts Morgan Stanley

The US bank's shares soar after a $9bn investment from Mitsubishi UFJ Financial Group that will give the Japanese company a 21% stake on better terms than previously announced
Source: FT.com - US homepage | 13 Oct 2008 | 7:47 pm

Three Gadget Sites You Shouldn't Shop Without (Deal of the Day)

Here are three web sites that shouldn't be missed when you're shopping for gadgets.

Source: SmartMoney.com | 13 Oct 2008 | 7:41 pm

7 Energy-Saving Eco-Gadgets (Deal of the Day)

These green gizmos promise to help save electricity, as well as the planet.

Source: SmartMoney.com | 13 Oct 2008 | 7:40 pm

Is there a divine hand in the Dow?

We've yet to spot a guy walking around with a sign that says "the end is nigh," but the chatter on Armageddon and Rapture Web sites is heating up. Sean Cole decided it was time to check in with a few "end time economists."
Source: Marketplace | 13 Oct 2008 | 7:05 pm

Don't forget the already poor

Charities are taking a blow from the economic crisis, as are emerging-nation businesses that rely on loans and profits. Commentator Edward Miguel warns of the consequences of heightened poverty.
Source: Marketplace | 13 Oct 2008 | 7:03 pm

Green voters on the coming election

Environmental regulations, conservation, alternative energy development -- all have come to be serious issues on the campaign trail. Mitchell Hartman investigates what "green voters" want from the next administration.
Source: Marketplace | 13 Oct 2008 | 7:01 pm

A lesson in market volatility

Stocks that dropped 40% last week are now up 20%. What gives? Is it suddenly a better time to invest in everything from banks to fast food? Jeremy Hobson reports on the science of volatility.
Source: Marketplace | 13 Oct 2008 | 6:53 pm

European plan puts cash in banks

Call it the bailout heard round the world. After a weekend of meetings, France, England, Germany and other European countries unveiled their rescue plan: pump cash, cash and more cash directly into banks. Stacey Vanek-Smith takes a look.
Source: Marketplace | 13 Oct 2008 | 6:42 pm

A rescue package that's 'unlimited'

The Fed is leading an extraordinary push to restore liquidity in the world financial markets by offering "unlimited" greenback funds in auctions. So, does that mean the sky's the limit? Bob Moon finds out.
Source: Marketplace | 13 Oct 2008 | 6:40 pm

What's in the bailout package now

Having the government buy stakes in banks as part of the $700 billion-plus bailout program is a significant change financially and ideologically. Kai Ryssdal asks economist Robert Litan how this is going to work.
Source: Marketplace | 13 Oct 2008 | 6:38 pm

China posts record trade surplus

China's trade surplus hit a record $29.3bn in September as exporters defied forecasts of falling international demand – for the moment, at least
Source: FT.com - US homepage | 13 Oct 2008 | 4:31 pm

Newspapers Blame Ad Networks as Online Revenue Shrinks

Things are looking bad for the ad network market. With the glut of ad networks around and the looming threat of ad dollars shrinking in a bad economy, accusations that ad networks do more harm than good are getting louder, especially in light of falling ad numbers online.

Online advertising revenue is still growing, but newspapers saw a 2.4 percent decline in online ad revenue in the second quarter of this year. With features, content, and page views up, publishers are blaming ad networks for their sinking revenues, according to The New York Times.

Newspapers are leaving ad networks, limiting their ad inventory, and generally becoming more distrustful of what networks bring to the table.

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Source: Portfolio.com: Top 5 | 13 Oct 2008 | 4:30 pm

CNN to open new hub in Abu Dhabi

CNN has chosen Abu Dhabi as the site of a new broadcast facility to match its international hubs in London, Hong Kong and Mexico City, as the network seeks to cut its reliance on other news organisations
Source: FT.com - US homepage | 13 Oct 2008 | 3:25 pm

The Blurry Bailout

The man in charge of the $700 billion bailout program has spoken, but taxpayers don't know much more about what it is they're about to own.

Neel Kashkari, the 35-year-old former Goldman Sachs banker who was tapped to oversee the program, gave a broad overview of the plan's structure and an update on who will help run it in the interim. Treasury is expected to decide on outside asset managers and investment consultants to execute the plan within the next few days. One of three firms will be selected to be the "master custodian" of the program within 24 hours.

But the devil, as they say, is in the details, and Kashkari's speech was short on them. As finance ministers in Europe have adopted sweeping strategies to shore up their financial sectors, the U.S. is still weighing possible lines of attack. For instance, it has not decided on whether or not it will guarantee interbank lending or insure more deposits than it has already announced. Many European leaders have not only already agreed to do so, they've already taken such actions.

Much of the focus in recent days has been on Treasury's new plan to take equity stakes in financial institutions to boost their capital base and spur lending. The announcement late last week marked a shift in the government's plans, as Treasury Secretary Hank Paulson had flatly rejected that idea just weeks ago.

Paulson has called a meeting for Monday afternoon to discuss the program with the heads of many U.S. banks, including Citigroup's Vikram Pandit, Bank of America's Ken Lewis, J.P. Morgan's Jamie Dimon, Morgan Stanley's John Mack, and Goldman Sachs' Lloyd Blankfein.

It's not at all clear how such a program would work. "As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions," Kashkari said. "It will also encourage firms to raise new private capital to complement public capital."

Treasury officials have acknowledged the importance of taking equity stakes without diluting existing shareholders or discouraging outside investments. Britain, on the other hand, did not protect shareholders of Royal Bank of Scotland, HBOS, and Lloyds with its $64 billion capital injections this morning. As a result, shares in those banks plummeted today while the broader stock indexes all surged.

But what exactly is a "healthy" institution in the eyes of the government? Paulson's weekend maneuvering in the Morgan Stanley-Mitsubishi deal provides a bit of insight into just how difficult it may be for the government to pick and choose its investments.

The New York Times reported over the weekend that Paulson did not intend to use his broad powers to inject capital into Morgan Stanley, citing unnamed sources. Was that an empty threat to push Morgan into agreeing to whatever terms were offered from the Japanese bank? Or is Morgan Stanley not a "healthy" institution worthy of some of that taxpayer loot?

But by Sunday night, the tone had softened, with Treasury sources saying they would in fact protect Mitsubishi's investment if it should have to subsequently add its own funds to Morgan Stanley's capital base. At this point, however, it does not plan to do so.

The message was clear. The government would not let Morgan become another Lehman.

It seems that the Treasury Department will have to continue playing a bit of the role of financial therapist to ailing firms in order to encourage as many private transactions as possible. After all, the Feds did not come to the defense of Citigroup in its bid to buy Wachovia Bank with backing from the government after Wells Fargo came in with another offer that did not require federal assistance.

No matter who is tapped to run the TARP, it will be executed by trial and error. The decisions won't be easy, and mistakes will certainly be made.

Kashkari insists that his group is working around the clock to reach solutions, and he boasted about how quickly it has accomplished establishing an interim team and an oversight board, which is to be run by Federal Reserve chairman Ben Bernanke.

But it seems that no matter how fast they move, they can't get there fast enough.

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Source: Portfolio.com: Top 5 | 13 Oct 2008 | 2:30 pm

Buiter Says U.K. Has Best Crisis Solution of Those Offered

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 2:16 pm

Apple Upgraded at Sanford C. Bernstein on `Compelling' Outlook

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 2:13 pm

Analyze Diss

Institutional 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.

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Source: Portfolio.com: Top 5 | 13 Oct 2008 | 1:30 pm

Gartman Sees Stock `Bounce,' No End Yet to Bear Market

Source: Bloomberg - All Podcasts | 13 Oct 2008 | 12:51 pm

Thanks, Hank

If 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."


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Source: Portfolio.com: Top 5 | 13 Oct 2008 | 12:00 pm

Flood the Zone

As 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."

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Source: Portfolio.com: Top 5 | 13 Oct 2008 | 11:30 am