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U.S., EU to meet on financial crisis, recession threatLONDON/BRUSSELS (Reuters) - U.S. and Europe Union leaders agreed on Thursday to meet at the weekend to prepare for a global summit to overhaul the world's financial system, while fears of global recession continued to rattle markets.Source: Reuters: Business News | 16 Oct 2008 | 11:55 am Nokia's third-quarter profit falls 30% but device margins holdNokia Corp., the world’s largest maker of mobile phones, posts a 30% drop in third-quarter profit and a 5% decline in sales but manages to improve gross margins at its all-important device division.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:55 am Losses pile up at key US banksUS banking giants Merrill Lynch and Citigroup report massive quarterly losses as market turmoil leads to further write-downs.Source: BBC News | Business | World Edition | 16 Oct 2008 | 11:54 am Citigroup losses rise on $13bn write-off$Citigroup, the world's biggest bank by revenue, reported a fourth consecutive quarterly loss after recording a further hit from the credit crunch of at least $13 billion.$Source: Latest Business News from Times Online | 16 Oct 2008 | 11:52 am Nokia to make $2.29 billion payment to Qualcomm (Reuters)Reuters - Nokia (NOK1V.HE) said on Thursday it will make a one-time payment of 1.7 billion euros ($2.29 billion) to mobile chipmaker Qualcomm as part its patent agreement with the U.S. firm. The top cell phone maker said the payment would be made during the fourth quarter and expensed quarterly over the term of the 15-year agreement that was first announced in July.Source: Yahoo! News: Business | 16 Oct 2008 | 11:51 am Citigroup posts $2.82 bln lossNEW YORK (Reuters) - Citigroup Inc on Thursday posted its fourth straight quarterly loss, hurt by increasing credit losses and write-downs tied to complex and low quality debt.Source: Reuters: Business News | 16 Oct 2008 | 11:49 am Global shares carry on tumblingEuropean shares follow Asian stock markets by plunging on growing fears of a global recession.Source: BBC News | Business | World Edition | 16 Oct 2008 | 11:49 am Europe Markets: Recession fears slam European sharesRecession fears hammer European shares for a second day on Thursday, with miners slumping again, while the Swiss government’s move to shore up UBS serves to remind investors that troubles in the banking sector haven’t gone away.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:47 am Switzerland to take on up to $60 billion of UBS assetsThe Swiss government on Thursday becomes the first to take troubled assets off a bank balance sheet, reaching a deal to absorb up to $60 billion in assets from UBS.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:46 am Southwest swings to quarterly loss on fuel hedgingSouthwest Airlines Co. swings to a third-quarter loss after falling oil prices penalize its fuel hedging program.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:46 am Citigroup posts nearly $3 billion loss amid more write-downsCitigroup Inc., the troubled banking giant, reported its fourth straight quarterly loss on Thursday amid continuing write-downs for soured investments.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:45 am Blue Source Appoints Erik Katz as EVP and COO as Firm Continues Development of Greenhouse Gas Reduction InfrastructureSALT LAKE CITY, Oct. 16 /PRNewswire/ -- Blue Source, LLC today announced the appointment of Erik Katz as Executive Vice President and Chief Operating Officer. He will be based inSource: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:45 am Stock futures up; eyes on earnings from Citi, IBMLONDON (Reuters) - Stock futures were pointing to a slightly higher open on Wall Street on Thursday -- following the previous session, which was its worst day since the stock market crash of 1987 -- as investors awaited a flurry of corporate earnings and economic data that will shed light on the economic outlook.Source: Reuters: Business News | 16 Oct 2008 | 11:44 am Stock futures up; eyes on earnings from Citi, IBM (Reuters)
Source: Yahoo! News: Business | 16 Oct 2008 | 11:44 am Global equity markets remain under pressureEquity and commodity markets around the world suffered further losses on Thursday as worries that the world is heading for a global recession continued to worry investors. The FTSE 100 fell below 4,000 and oil tumbled towards $70 a barrelSource: FT.com - US homepage | 16 Oct 2008 | 11:44 am JPMorgan passes Citigroup as largest U.S. bankNEW YORK (Reuters) - JPMorgan Chase & Co has become the largest U.S. bank by assets, surpassing long-time leader Citigroup Inc .Source: Reuters: Business News | 16 Oct 2008 | 11:42 am JPMorgan passes Citigroup as largest U.S. bank (Reuters)
Source: Yahoo! News: Business | 16 Oct 2008 | 11:42 am U.S., EU to meet on financial crisis, recession threat (Reuters)
Source: Yahoo! News: Business | 16 Oct 2008 | 11:42 am Top Pre-Market Upgrades & Downgrades (APC, ATPG, BCS, CRZO, DNDN, EBAY, FPL, STM)These are some of the top analyst upgrades and downgrades we are seeing from Wall Street analysts this Thursday morning:
Jon C. Ogg Source: 24/7 Wall St. | 16 Oct 2008 | 11:42 am Citi and Merrill report heavy lossesCitigroup lost $2.8bn in the third quarter after a sharp decline in revenues while Merrill Lynch, which is being taken over by the Bank of America, reported a bigger-than-expected net loss of $7.5bnSource: FT.com - US homepage | 16 Oct 2008 | 11:41 am Bunge Acquires 50% Stake in Vietnamese Port OperatorSINGAPORE, Oct. 16 /PRNewswire-FirstCall/ -- Bunge Asia, the Asian operating arm of Bunge Limited (NYSE: BG), today announced the acquisition of a 50% stake in the owner/operatorSource: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:38 am Merrill posts $7.5 billion third-quarter lossNEW YORK (Reuters) - Merrill Lynch & Co reported a third-quarter net loss of $7.5 billion -- worse than analysts had expected -- on write-downs and credit losses on complex debt securities.Source: Reuters: Business News | 16 Oct 2008 | 11:36 am Merrill posts $7.5 billion third-quarter loss (Reuters)Reuters - Merrill Lynch & Co reported a third-quarter net loss of $7.5 billion -- worse than analysts had expected -- on write-downs and credit losses on complex debt securities.Source: Yahoo! News: Business | 16 Oct 2008 | 11:36 am Movers & Shakers: Thursday's biggest gaining and declining stocksAmong the companies whose shares are expected to see active trade in Thursday's session are AIG, Citi, eBay, Nokia, Novellus, Quicksilver Resources, Xilinx and Zoltek.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:35 am G. Willi-Food International Anticipates 36% Revenue Increase for Third Quarter 2008 and 43% Revenue Increase for First Nine Months of 2008 Over the Comparable Periods in 2007YAVNE, Israel, October 16 /PRNewswire-FirstCall/ -- G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), one of ...Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:35 am Bank unveils money market reform to ease crunchThe Bank of England will next week launch permanent liquidity schemes in a bid to ease the seizure in the UK credit markets.Source: Latest Business News from Times Online | 16 Oct 2008 | 11:31 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:31 am AMCORE Financial, Inc. Reports 3rd Quarter ResultsROCKFORD, Ill., Oct. 16 /PRNewswire-FirstCall/ -- AMCORE Financial, Inc. (Nasdaq: AMFI) today announced financial results for the third quarter ended September 30, 2008.Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:30 am BB&T reports net income of $358 millionWINSTON-SALEM, N.C., Oct. 16 /PRNewswire-FirstCall/ -- BB&T Corporation (NYSE: BBT) reported today net income for the third quarter of 2008 totaling $358 million, or...Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:30 am AR Growth Finance Corp. Announces Appointment of New General Manager of ProBenefit S.A.MIAMI, Oct. 16 /PRNewswire-FirstCall/ -- AR Growth Finance Corp. ("AR Growth") (Pink Sheets: ARGW) announced today that its 95% owned subsidiary, ProBenefit S.A....Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:30 am Goodrich to Supply Sonar Domes for U.S. Navy Frigates, Cruisers and Destroyers-- Contract award is potentially valued at $33 million over five years CHARLOTTE, N.C., Oct. 16, 2008 /PRNewswire-FirstCall/ -- Goodrich Corporation (NYSE: GR) has...Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:30 am Forterus Inc. Estimates a Sizable Net Profit in SeptemberHUNTINGTON BEACH, Calif., Oct. 16 /PRNewswire-FirstCall/ -- Forterus Inc. (OTC Bulletin Board: FTER) reported $515,000 in revenue in September with an estimated net profit of...Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:30 am Thompson Creek announces Pamela L. Saxton has assumed the duties of Chief Financial OfficerNYSE: TC TSX: TCM, TCM.WT Frankfurt: A6R TORONTO, Oct. 16 /PRNewswire-FirstCall/ - Thompson Creek Metals Company Inc. ("the Company"),...Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:30 am Huntington Bancshares Reports 2008 Third Quarter Net Income of $115.2 Million, or $0.28 Per Common Share- Stable net interest margin of 3.29% - 4% annualized linked-quarter increase in average total core deposits - Annualized net charge-offs of 0.82% - $42 million net...Source: Infocious RSS raw feed - channel BNewsBusiness | 16 Oct 2008 | 11:28 am United Technologies profit rises 6 percentBOSTON (Reuters) - Diversified U.S. manufacturer United Technologies Corp reported a 6 percent rise in profit, boosted by continued strong demand for helicopters and products used in commercial construction.Source: Reuters: Business News | 16 Oct 2008 | 11:24 am Nectar card maker teeters near collapseThe company that prints millions of supermarket loyalty cards and Post Office benefit cards each year is poised to fall into administration after being threatened with a winding up order by the Inland Revenue.Source: Latest Business News from Times Online | 16 Oct 2008 | 11:22 am Southwest reports net loss due to fuel hedgesCHICAGO (Reuters) - Southwest Airlines reported a quarterly net loss on Thursday, reversing a year-ago profit, on charges related to its fuel hedging program.Source: Reuters: Business News | 16 Oct 2008 | 11:22 am Citigroup (C) Earnings: Still Sweating
Revenue dropped 23% to $16.7 billion. In the Institutional Clients Group, Securities and Banking revenues were negative $81 million, due to substantial write-downs and losses related to the credit markets. Citigroup had net write-downs of $394 million on sub-prime related direct exposures. These exposures on June 30, 2008, were comprised of approximately $4.3 billion of gross lending and structuring exposures and approximately $18.1 billion of net ABS CDO super senior exposures. On September 30, 2008, these exposures were comprised of approximately $3.3 billion of gross lending and structuring exposures and approximately $16.3 billion of net ABS CDO super senior exposures. While our third quarter results reflect both a difficult environment as well as continued write-downs on our legacy assets, we are making excellent progress on the parts of our business we control, including expense reduction, headcount, and balance sheet and capital management. We expect these improvements will enable us to realize the full earnings power of our franchise as the economy stabilizes,” said Vikram Pandit, Chief Executive Officer of Citi. The economy may not stabalize for a long time. Citi shares were up slightly in pre-market trading Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 11:21 am Merrill posts $5.15 billion third-quarter lossNEW YORK (MarketWatch) -- Merrill Lynch, the venerable broker that agreed last month to be acquired by Bank of America amid a market panic that threatened its survival, said Thursday that it lost more than $5 billion in the third quarter including a series of charges and writedowns tied to bad investments.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:20 am UnitedHealth earnings fall, but sales riseUnitedHealth Group's third-quarter earnings fall but sales rise -- in line with expectations -- as the company continues to work through a difficult economy and a downcycle in underwriting.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:20 am Big loss for MerrillAnother quarter, another massive loss for Merrill Lynch.Source: Business and financial news - CNNMoney.com | 16 Oct 2008 | 11:17 am Swiss banks raise emergency funds to fight crisisBERNE (Reuters) - Switzerland is taking a near 10 percent stake in UBS as the Swiss bank and its rival Credit Suisse said on Thursday they were raising billions of francs to shore them up against the financial crisis.Source: Reuters: Business News | 16 Oct 2008 | 11:16 am Indications: U.S. stock futures limp higher after Wednesday's routU.S. stock futures edged higher Thursday after the beating in the past session, helped by murmurs of another round of coordinated rate cuts amid worries that the entire global economy may slip into a recession.Source: MarketWatch.com - Top Stories | 16 Oct 2008 | 11:12 am Bank of NY Mellon profit falls on big chargeNEW YORK (Reuters) - Bank of New York Mellon Corp's third-quarter profit fell 53 percent, hurt by a big charge to bail out funds affected by Lehman Brothers Holdings Inc's bankruptcy, the bank said on Thursday.Source: Reuters: Business News | 16 Oct 2008 | 11:03 am Slowdown sends Cemex profit lowerMexican cement giant Cemex sees profits fall sharply, following an economic slowdown and the nationalisation of its Venezuelan business.Source: BBC News | Business | World Edition | 16 Oct 2008 | 10:54 am Woolworths rocked as senior director quitsOne of Woolworths’ most senior directors has quit only a month after the high street retailer’s new chief executive savaged the poor performance of the group.Source: Latest Business News from Times Online | 16 Oct 2008 | 10:51 am Nokia profit plunges 30%Source: Business and financial news - CNNMoney.com | 16 Oct 2008 | 10:51 am Merrill Lynch's (MER) Bad Medicine
Merrill lost $5.2 billion in the third quarter. The brokerage firm said that it had a loss from continuing operations for the third quarter of 2008 of $5.1 billion, or $5.56 per diluted share, compared with a net loss from continuing operations of $2.4 billion, or $2.99 per diluted share, for the third quarter of 2007. Among the bad news was that Merrill had net write-downs of $3.8 billion principally from severe market dislocations in September, including real estate-related asset write-downs and losses related to certain government sponsored entities and major U.S. broker-dealers, as well as the default of a U.S. broker-dealer. In addition, the firm had net losses of $2.6 billion resulting primarily from completed and planned asset sales across residential and commercial mortgage exposures. "We continue to reduce exposures and de-leverage the balance sheet prior to the closing of the Bank of America deal," said John A. Thain, chairman and CEO of Merrill Lynch. Thain better hope BAC sees it that way. Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 10:50 am Nokia (NOK): The Cellphone Business Used To Be Great
The earnings news from Nokia was particularly bad. The firm said said third-quarter net income fell 30% to 1.09 billion euros, or .29 euro a share, from 1.56 billion euros, or .40 euro a share, earned in the same quarter last year. Sales fell 5% to 12.2 billion euros, missing consensus forecasts for sales of 12.7 billion euros. Perhaps the most harsh number was that the firm shipped 117.8 million units, down 3% sequentially. Nokia's earnings mean the number of cellphones sold around the world could be flattening or even contracting. Investors might be tempted to say that it is just one company's problem, but if things are hard on Nokia, they are also probably hard on its most direct competitors which include Motorola (MOT), Samsung, Sony Ericsson and Apple (AAPL). The damage is almost certain to spread to the primary handset chip makers including Texas Instruments (TXN), Qualcomm (QCOM), and Broadcom (BRCM). Cell carriers may be the largest causalities. Earnings at AT&T (T) and Verizon (VZ) have only increased the last three years because their cellular businesses have grown especially fast. The landline part of the industry which was so important to them for almost a century is shrinking. Nokia's numbers were bad and that puts it at the center of a destructive storm. Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 10:42 am Parole denied for Yukos ex-bossA Russian court rejects a second appeal for parole from former Yukos boss Mikhail Khodorkovsky.Source: BBC News | Business | World Edition | 16 Oct 2008 | 10:31 am The Problem With Cuomo Taking Back AIG (AIG) Bonuses
Andrew Cuomo, the NYS Attorney General, thinks that it is wrong that some of the top people at AIG got big comp deals while the place was falling apart. For some reason, he is not suggesting that CEOs at companies that do remarkably well get a lot more money. That seems a bit one-sided. According to The Wall Street Journal, Cuomo wants to know more about "extraordinary expenditures in the form of executive compensation payments, junkets and perks for its executives." If he wants to be governor like his father was, this kind of visible investigation is important. He can't buy the exposure. The "junkets" part of the probe seems fair. The objection to compensation is tantamount to saying that public company boards cannot set management compensation, something which they have done for decades and is part of many company's corporate bylaws. It is protected by years or precedent and probably the powers of the remarkably pro-business Delaware court system. The methods for getting at executive pay are supposed to be though governance provisions which allow shareholders to pressure boards for more management accountability and more reasonable pay. The system has not always been effective, but it may be a tad better than letting the NYS Attorney General set CEO pay at any company with its headquarters in the Empire State. If Cuomo digs up fraud, all bets are off. He will raid AIG offices and take out management in handcuffs and with rain coats over their heads. Good for him. Joining the compensation committee at AIG may be outside Cuomo's charter Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 10:22 am eBay warning of tough ChristmasOnline auction site eBay reports robust profits but warns that a weak economy will hurt sales in the run-up to Christmas.Source: BBC News | Business | World Edition | 16 Oct 2008 | 10:16 am Patricide At GMAC (GM)
When GM needed cash two years back, it seemed only logical that it sold a majority interest in GMAC to hedge fund Cerberus which has been humiliated by its foray into the car business including the purchase of 80% of failing American auto company Chrysler. GMAC has decided it cannot make car loans to anyone who is not fabulously wealthy. It has been losing so much money on its mortgage business and auto loan defaults that it is going into a cocoon to try to save itself. GM is already having trouble selling cars because people feel poor or, in many cases, are poor. The firm still has too many SUVs and pick-ups in its product line. No one can afford the gas to run those. The government has set up a $25 billion loan guarantee facility to help US car companies convert their factories to make more fuel-efficient cars. The federal loan guarantee won't do much if GM cannot stay afloat for two more years. If it could sell its vehicles to anyone with even modest credit, it might have a chance. Once people who habitually make their notes can't borrow money to get a car, GM's odds of extending its run until it can build a lot of hybrids and electric cars are pretty much kaput. The problem does suggest its own solution. The government may be making loans to the wrong end of the car-buying process. By helping manufactures, it may create demand several quarters out. That assumes that new autos from the Big Three are better than the junk they ship now. Underwriting car loans to consumers is a much faster way to get money into auto companies. It stimulates buying today and lifts current demand out of the flat spin which is taking industry sales down 25% from what they were last year. Car buyers may not be as creditworthy as home buyers. In this day and age, that is not saying much. Even if default rates are 5% per year, the government can always hire repo men to get back the used vehicles. It can then put them into pools and sell car-default futures to banks. Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 10:03 am Swiss banks get major rescue packageSwitzerland joined the list of countries taking unprecedented measures to strengthen their banks with the government taking an indirect SFr6bn stake in UBS and taking over $60bn of its toxic assets. Credit Suisse also raised SFr10bn from investors including the Qatar Investment AuthoritySource: FT.com - US homepage | 16 Oct 2008 | 9:50 am Emerging market currency volatility eruptsThe South Korean won and the Turkish lira were the main casualties on Thursday as the turmoil on financial markets deepened, provoking violent price swings in emerging market currencies.Source: FT.com - US homepage | 16 Oct 2008 | 9:46 am Note From Switzerland: Hell Is Coming
The trouble, it appears, has been visited upon the Swiss, although they do have some of the blood of the credit crisis on their hands. For reasons no one can fathom, UBS (UBS) of Switzerland decided that it had a larger appetite for mortgage-related financial instruments than any other bank in the world. Its balance sheet became obese with the junk and forced it to take what seemed like a write-off a week. UBS has fired so many people that it is surprising it still has someone to man the switchboard. Things have gotten worse at UBS, and it only took a couple of months. The last time the bank reported earnings it did not indicate that it might be found face down in an alley in Zurich. Matters have gotten so bad that UBS has had to take a $5.3 billion investment from the Swiss government. It is more awful than that. The FT reports that "UBS, one of the largest casualties of the US credit crisis, would also transfer $60bn — the overwhelming majority — of its illiquid US securities to a new entity owned and controlled by the Swiss National Bank." That $60 billion is nearly 25% of the money Paulson is investing in US banks and UBS is only one firm headquartered in a country best known for making expensive watches for people who work on Wall St. UBS management did not have the guts to come out and say that the actions taken today by its board and the government would end all of its problems. It probably would be a lie, so why bother? The bank's customers are making a run on its assets and there is no telling how much cash will walk out the door. There may be something of a modest lesson in all of this if Treasury and US banks are paying attention. As long as housing prices are falling and bank customers are putting cash into their mattresses, the American banking system is in increasing ill-health. The purchases of Treasuries is way up. That could be the Chinese government sucking up more of the paper, or hedge funds looking for safe harbors. It is just as likely, however, that a lot of that money is from the barber and gas station attendant who don't want their money in the Fifth Third Bank. Increasingly, Americans believe that they have reason not to trust their banks, no matter what the government tells them about FDIC guarantees. Between that skepticism and increasing mortgage defaults, the $700 billion coming from the government may not be nearly enough. Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 9:37 am Downturn: Threat or secret weapon?Running a major retailer amid economic tumult can't be easy, but Sam's Club CEO Doug McMillon, 41, faces unique challenges. Sam's is so big - 2007 revenues were $44 billion - that if it were a freestanding company it would rank No. 52 on the Fortune 500, and finding growth at that size can be tough. But Sam's is just part of a far huger company, Wal-Mart, which is counting on Sam's to help fuel its own growth.Source: Business and financial news - CNNMoney.com | 16 Oct 2008 | 9:37 am EU set to backtrack on emissionsEU leaders look set to give way to demands from some members to water down the bloc's ambitious climate change plans.Source: BBC News | Business | World Edition | 16 Oct 2008 | 9:23 am Ryanair seeks probe on fuel costBudget airline Ryanair asks the Office of Fair Trading to probe rising aviation fuel prices at airports in Glasgow and Belfast.Source: BBC News | Business | World Edition | 16 Oct 2008 | 9:06 am Switzerland unveils UBS bail-outThe Swiss government helps UBS raise billions of dollars of fresh capital and takes on the bank's toxic assets.Source: BBC News | Business | World Edition | 16 Oct 2008 | 9:01 am TUI Travel's German parent rules out purchaseShares in TUI Travel, which owns Thomson and First Choice holiday brands, fell by more than 20 per cent this morning after its German majority shareholder said it had no immediate intention of making an offer for the rest of the company.Source: Latest Business News from Times Online | 16 Oct 2008 | 8:59 am Gloom gathers ahead of Google resultsGoogle is set to report third-quarter earnings after the market closes Thursday, and investors aren't exactly placing bets on a big blowout. Despite a huge jump in September Internet searches related to the election and the widening credit crisis, the boost in traffic may not necessarily mean it's all good for Google.Source: Business and financial news - CNNMoney.com | 16 Oct 2008 | 8:53 am Oil price down on recession fearsOil prices fall to their lowest level in 14 months amid continued fears that a global recession will hit demand.Source: BBC News | Business | World Edition | 16 Oct 2008 | 8:49 am Europe and Asia Follow Wall Streets RoutThe rout in global stocks showed no signs of letting up, with markets in Europe and Asia plunging and crude oil prices tumbling on signs of a serious slowdown.Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 8:46 am Japan's PM says US bank bailout is 'insufficient' (AP)
Source: Yahoo! News: Business | 16 Oct 2008 | 8:31 am eBay shares fall on grim outlookThe online auction site meets analyst estimates, but unnerves investors with a dismal outlook for the coming holiday shopping season.Source: Business and financial news - CNNMoney.com | 16 Oct 2008 | 8:20 am Tesla CEO out, layoffs comingSource: Business and financial news - CNNMoney.com | 16 Oct 2008 | 8:20 am Travis Perkins to cut costs and final dividendShares in Travis Perkins, the owner of builders’ merchants Wickes, fell more than 30 per cent this morning after it gave warning that it was unlikely to pay a final dividend and full-year profits would be at the low end of expectations because of the slowdown in the construction and housing markets.Source: Latest Business News from Times Online | 16 Oct 2008 | 8:14 am Robert PestonOther options for the government as banks reduce loansSource: BBC News | Business | World Edition | 16 Oct 2008 | 7:55 am UBS and Credit Suisse Get Urgent Bailout FundsThe two leading Swiss banks said that they had secured emergency support totaling some $14.1 billion, either from the Swiss authorities or from outside investors.Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:54 am Media Digest 10/16/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that AIG (AIG) is lobbying to loosen government oversight rules. Reuters reports that Bernanke said the credit crisis is threatening the US economy. Reuters reports that netbooks have become cheap replacement for laptops, hurting the sales of the more expensive portable PCs. Reuters reports that the SEC is extending the rule for short selling disclosures. Reuters writes that Ebay (EBAY) warned on future earnings, driving its stock down. Reuters writes that a new survey shows that shoppers will cut holiday spending. Reuters reports that JPMorgan (JPM) and Wells Fargo (WFC) face risks because of the recession as they integrate the weaker banks they are merging with. The Wall Street Journal reports that the Swiss government put $5.3 billion into UBS for a 9% stake. The Wall Street Journal writes that FDIC Chairman Sheila Bair criticized the U.S. rescue plan for not addressing foreclosures. The Wall Street Journal reports that companies short on cash are tapping revolving credit lines to the tune of billions of dollars. The Wall Street Journal reports that tighter rules on car lending could hurt GM's (GM) sales. The Wall Street Journal reports that eight companies will launch a $100 million research project into blood clots caused by stents. The Wall Street Journal reports that deposits are flowing into healthy banks. The Wall Street Journal reports that the EU is pushing for oversight of its largest financial firms. The Wall Street Journal reports that the credit crisis could hurt efforts to fight accelerating climate change. The Wall Street Journal reports that the FCC released a report that say new spectrum opened for wireless portable devices would not interfere with TV signals. The Wall Street Journal reports that airline fortunes are improving based on earnings from AMR (AMR) and Delta (DAL). The Wall Street Journal reports that the credit crisis is hurting Europe car sales. The Wall Street Journal reports that HP (HPQ) will make a touchscreen laptop. The New York Times writes that home prices seem far from a bottom. The New York Times reports that NY State wants to get back bonuses from former AIG executives. The New York Times reports that the Fed’s “beige book" found economic weakness across the country. The FT reports that "UBS, Europe’s largest casualty of the US credit crisis, would also transfer $60bn — the overwhelming majority — of its illiquid US securities to a new entity owned and controlled by the Swiss National Bank." The FT writes that US hedge funds were hit by $43 billion in withdrawals in September. The FT reports that oil fell below $75. The FT reports that hedge funds asked the Bank of England to free up Lehman's frozen assets. The Ft reports that EDF abandoned plans to bid for Constellation Energy because of problems in the credit markets. Bloomberg reports that Citadel Investment Group's biggest hedge fund fell as much as 30 percent this year Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 7:42 am Asian Stocks Drop DramaticallyVolatility and risk aversion in global stock markets continued in Asia, where sharp falls in the Nikkei 225 and other indexes all but wiped out an extraordinary rally.Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:34 am Swiss Banks Get Emergency Funds to Fight CrisisSwitzerlands two largest banks will receive emergency financing from the government and other investors to shore them up against the financial crisis, they said.Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:31 am Asia Markets And Europe Open 10/16/2008: Japan Off 11%
The Nikkei fell 11% to 8,658. The Hang Seng fell 7.6% to 14,786. The Shanghai Composite moved down by 3.8% to 1,919. In Europe, the FTSE opened down 2.5% to 3,980. The DAX fell 5.1% to 4,617. The CAC 40 was down 5.2% to 3,207 Data from Reuters. Douglas A. McIntyre Source: 24/7 Wall St. | 16 Oct 2008 | 7:09 am Tesla Motors hits the brakes amid credit crisisThe country's leading electric car maker delays its next model, replaces its CEO and will lay off workers.The credit crisis has hit the country's leading electric car maker. Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am Tesla Motors hits the brakes amid credit crisisThe country's leading electric car maker delays its next model, replaces its CEO and will lay off workers. The...Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:00 am Dow dives 733 points as retail sales show steep dropSeptember sales slumped a worse-than-feared 1.2%, raising recession concerns. The sell-off worsened even as Fed Chairman Ben Bernanke hinted at further interest rate cuts. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:00 am Obama ad buy would push back start of a World Series Game 6Major League Baseball agrees to delay the start by about 15 minutes to allow Fox to carry the half-hour program, which will also be shown on CBS and NBC stations. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:00 am Defense contractors may see leaner timesA new administration and broad economic pressures are expected to mean cutbacks in federal spending.There are few industries whose fortunes are so closely tied to government as military contractors, companies that provide the Pentagon with everything from fighter jets to janitors. And for the last eight years, business has been very good. Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am New stimulus package might be next in federal effort to gird economySinking retail sales add urgency to calls for a 2nd round of stimulus.Amid fresh signs that the nation is in recession -- and yet another jaw-dropping decline in the stock market -- Congress is gearing up to enact a new economic stimulus plan to help ordinary Americans. Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am Dow dives 733 points as retail sales show steep dropSeptember sales slumped a worse-than-feared 1.2%, raising recession concerns. The sell-off worsened even as Fed Chairman Ben Bernanke hinted at further interest rate cuts.Remember that 936-point gain in the Dow Jones industrial average Monday? It's now mostly gone. Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am Obama ad buy would push back start of a World Series Game 6Major League Baseball agrees to delay the start by about 15 minutes to allow Fox to carry the half-hour program, which will also be shown on CBS and NBC stations.Major League Baseball agreed Wednesday to delay the start of a World Series game by about 15 minutes to make room for a television commercial that Democratic presidential nominee Barack Obama plans to run Oct. 29. Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am Disney unveils a 1920s theme for California AdventureThe $1-billion effort to revive the park will try to re-create the era when Walt Disney arrived in Hollywood.Disney's California Adventure is poised for a $1-billion makeover that's designed to give the troubled theme park the main thing it lacks -- an emotional connection to keep people coming back. Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am Disney unveils a 1920s theme for California AdventureThe $1-billion effort to revive the park will try to re-create the era when Walt Disney arrived in Hollywood. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:00 am Google G1: A real iPhone challengerThe phone, which goes on sale Wednesday, has some catching up to do, but it's actually better at some tasks. For one thing, typing. We compare the two. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:00 am California Realtors forecast lower home prices, rising sales in 2009The volume of home sales is expected to climb 12.5% next year, even as doubts linger about the nation's financial markets. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 16 Oct 2008 | 7:00 am Google G1: A real iPhone challengerThe phone, which goes on sale Wednesday, has some catching up to do, but it's actually better at some tasks. For one thing, typing. We compare the two.Google can search out just about anything on the Internet, but can it call to say you'll be late for dinner? Source: L.A. Times - Business | 16 Oct 2008 | 7:00 am AIG lobbying to relax oversight rules: report(Reuters) - Insurance giant American International Group Inc is spending money to lobby states to soften new controls on the mortgage industry, the Wall Street Journal said.Source: Reuters: Business News | 16 Oct 2008 | 5:35 am London shares dive below 4,000 on slowdown fearsShares in London dived through the psychologically important 4,000-level today as panic about the strength of the global economy continued to spread from America to Asia and the UK.Source: Latest Business News from Times Online | 16 Oct 2008 | 4:52 am Woolworths pulls out of Warehouse court appealWoolworths is withdrawing a challenge in the Supreme Court to a Commerce Commission decision stopping it taking over The Warehouse. But the Australian retailer is not saying if it will re-apply to the commission for permission...Source: New Zealand Herald - Business | 16 Oct 2008 | 4:47 am American, Delta face a downdraft in profitThe airlines post operating losses in the third quarter when the high price of jet fuel offset hikes in air fares and new fees.Hiking airfares and adding fees bolstered revenue for two of the nation's largest carriers, but high fuel costs continued to wipe away earnings for American Airlines and Delta Air Lines Inc. Source: L.A. Times - Business | 16 Oct 2008 | 4:36 am Shoppers to constrain holiday spending: survey (Reuters)
Source: Yahoo! News: Business | 16 Oct 2008 | 4:09 am McCain and Obama clash in final debateJohn McCain, trailing in opinion polls in the race for the White House, met Barack Obama for their third and final presidential debate, putting up what some commentators called a feisty performance as he sought to turn his campaign aroundSource: FT.com - US homepage | 16 Oct 2008 | 2:57 am Farm sales in September near record lowTotal farm sales in New Zealand reached their second lowest monthly level in September since January 2003. Total sales fell for the fifth consecutive month in September, to 130 from 146 in August and down from 264 in April, figures...Source: New Zealand Herald - Business | 16 Oct 2008 | 2:45 am Ex-AIG chief Greenberg takes the FifthMaurice "Hank" Greenberg, the legendary former chief executive of AIG, declined to answer questions Saturday from the New York Attorney General's office about his role in a controversial transaction between AIG and another insurer. Instead, Greenberg invoked his Fifth Amendment rights, his defense lawyer confirmed.Source: Business and financial news - CNNMoney.com | 16 Oct 2008 | 2:41 am Recession fears slam markets in Aust, JapanThe after-shocks of Wall St's nosedive are being felt across the Pacific and now Asia, as markets open for the day. The Australian share market plunged five per cent in early trade after reports in the US stoked fears of a recession...Source: New Zealand Herald - Business | 16 Oct 2008 | 2:25 am Stocks take hammering again - down nearly 5 pcThe New Zealand sharemarket has plummeted nearly 5 per cent today, after United States equities had a terrible day due to recession fears. The benchmark NZX-50 index is down 133 points to 2771, a fall of 4.8 per cent, following...Source: New Zealand Herald - Business | 16 Oct 2008 | 1:30 am Blog: Bernanke suggests a Fed shift on bubble-bustingSource: L.A. Times - Business | 16 Oct 2008 | 1:01 am Windflow raises more than $8m in tough timesIn the midst of a global credit meltdown and capital raisings falling over, one company says it's been able to actually raise some money from New Zealand investors. Local wind turbine maker Windflow today said it had been able...Source: New Zealand Herald - Business | 16 Oct 2008 | 1:00 am Trends & Innovations - WednesdayCancer patients forgo treatmentsSource: Investor's Business Daily: BUSINESS | 16 Oct 2008 | 12:23 am After The Close - WednesdayGM (GM) rolled out "financing that fits," a program to help dealers find banks willing to finance car purchases. It acted after GMAC...Source: Investor's Business Daily: BUSINESS | 16 Oct 2008 | 12:23 am In Brief - WednesdayTrina Solar (TSL), a Chinese solar company, raised its Q3 revenue outlook to $285 mil-$294 mil, above views. It fell 3% to 12.95.Source: Investor's Business Daily: BUSINESS | 16 Oct 2008 | 12:23 am Business Briefs - WednesdayCoke beats on strong int'l sales. The soft drink giant said Q3 EPS rose 17% to 83 cents ex items, topping views by 6 cents. Sales were up 9% at...Source: Investor's Business Daily: BUSINESS | 16 Oct 2008 | 12:23 am Coal Remains The Locomotive Driving Eastern Railroad's GrowthHow soon the economy will recover enough to get consumer goods back on track is still unclear.Source: Investor's Business Daily: BUSINESS | 16 Oct 2008 | 12:23 am Cuomo probes 'outrageous' spending at AIGNew York attorney-general accused the company of making 'extraordinary' expenditures before its near collapse and after the government extended a loan to stave off bankruptcySource: FT.com - US homepage | 16 Oct 2008 | 12:22 am All slumps are not created equalAll stock market slumps are not created equal and today's market slide - following the big sell off on Wall St over night - is not nearly as worrying as the panicked freefall we saw around the world last week. This is far more predictable...Source: New Zealand Herald - Business | 16 Oct 2008 | 12:00 am Dominion Finance shares suspended indefinitelyTrading in Dominion Finance Holdings (DFH) shares has been suspended indefinitely. The company's main finance company subsidiary Dominion Finance Group was placed in receivership by Perpetual Trust last month, owing 6055 debenture...Source: New Zealand Herald - Business | 16 Oct 2008 | 12:00 am GM campaign tells buyers they can still get loans (AP)AP - With October auto sales expected to fall short of September's 15-year low, General Motors Corp. is launching a campaign this week to reach people who have stopped looking for cars out of fear that they can't get a loan.Source: Yahoo! News: Business | 15 Oct 2008 | 11:48 pm Vector pulls proposal to increase directors' feesElectricity and gas distributor Vector has pulled a proposal to increase the fees paid to its directors. Chairman Michael Stiassny today said economic conditions had driven the board's decision. "Given the local and global economic...Source: New Zealand Herald - Business | 15 Oct 2008 | 11:45 pm US hedge fund suffer heavy withdrawalsInvestors pulled at least $43bn from US hedge funds in September as market turmoil led to unprecedented withdrawals, an analysis by a leading research house showsSource: FT.com - US homepage | 15 Oct 2008 | 11:16 pm Hedge funds in Lehman assets callThe head of one of America's biggest hedge fund industry groups has written to Mervyn King, Governor of the Bank of England, warning that a failure to free up an estimated $70 billion in assets frozen in Lehman Brothers' could trigger $"systemic" losses.Source: Latest Business News from Times Online | 15 Oct 2008 | 11:08 pm Hedge funds in Lehman assets callThe head of one of America's biggest hedge fund industry groups has written to Mervyn King, Governor of the Bank of England, warning that a failure to free up an estimated $70 billion in assets frozen in Lehman Brothers' could trigger $"systemic" losses.Source: Latest Business News from Times Online | 15 Oct 2008 | 11:08 pm Mining stocks tumble as Rio chief warns of Chinese slowdownMining shares were hammered yesterday as Rio Tinto called time on the Chinese export markets and forecast weaker growth in demand for metal from the smelters and workshops of the People's Republic.Source: Latest Business News from Times Online | 15 Oct 2008 | 11:00 pm Blog: California boosts size of IOU sale -- and cuts yieldsSource: L.A. Times - Business | 15 Oct 2008 | 10:52 pm Rio Tinto alert sparks sell-offA slowdown in Chinese demand has forced Rio Tinto to revise its expansion plans, the miner's chief executive warned in a move that triggered a sharp global sell-off in sector stocksSource: FT.com - US homepage | 15 Oct 2008 | 10:36 pm Deposit scheme criteria tightenedThe Reserve Bank and Treasury have moved to allay some of the concerns around the new deposit guarantee scheme including the prospect of stricken finance companies jumping aboard and saddling the taxpayer with the bill in the event...Source: New Zealand Herald - Business | 15 Oct 2008 | 10:30 pm Feds launch probe of WaMu's failureRead full story for latest details.Source: Business and financial news - CNNMoney.com | 15 Oct 2008 | 9:38 pm VIX Index of U.S. Stock Option Prices Advances 25.6% to 69.25Source: Bloomberg - All Podcasts | 15 Oct 2008 | 9:25 pm Astor Asset's Stein Says ETFs' Average Shows Market TrendsSource: Bloomberg - All Podcasts | 15 Oct 2008 | 9:22 pm Close Of Trading: As If The Bank Bailout Never Happened
The S&P closed today at 907.84, which is within three points of where it closed last Friday. In between, it got up to 1,042.75. For anyone still naive enough to look back with hope at how well things were going a year ago, the index's 52-week high is 1,552,76. At this moment it feels like the market will never be back there again. Stranger things have never happened. The puerile view would be that the recession simply trumped the Treasury's plan to fix the credit system. The idea of putting $250 billion into banks, whether they needed it or not, makes sense. If the financial firms do not need it today, they may need it tomorrow. Mortgages are still defaulting at an intensifying rate. The write-offs of the last year may be modest compared to what is to come. Earnings and company forecasts are supposed to be one of the most pure sets of indicators of whether a recession is coming, and, if so, how bad it will be. The government does not give out forecasts for unemployment or retail sales. Analysts may guess at them, but nothing beats hearing from the source. Almost every company which announced its third quarter numbers today made ominous sounds about the fourth quarter and next year. Even Intel (INTC) and JP Morgan (JPM), which did particularly well, said that the future was cloudy at best and alarming at worst. It would be surprising if earnings warnings do not continue and in most cases get even more grim. Monday was a dream day, perfect. The government had murdered capitalism, but in its place the Treasury had saved the world. That only lasted 48 hours. Douglas A. McIntyre Source: 24/7 Wall St. | 15 Oct 2008 | 9:18 pm Currency: Kiwi tumbles 2c vs greenbackThe New Zealand dollar tumbled 2c against the greenback early today as stocks slid in the United States after figures showed a big slide in US retail sales. By 8am today the NZ dollar was buying US60.70c , having been above US62.60c...Source: New Zealand Herald - Business | 15 Oct 2008 | 9:15 pm Sachs of Columbia University Sees `Deep' U.S. RecessionSource: Bloomberg - All Podcasts | 15 Oct 2008 | 9:11 pm Deutsche Bank's Chadha Says Equities At or Near BottomSource: Bloomberg - All Podcasts | 15 Oct 2008 | 8:43 pm Bernanke warns of slow recoveryEven if the US government's rescue plan succeeds in stabilising the financial markets, it will not produce a rapid turnround in the economy, Ben Bernanke warnedSource: FT.com - US homepage | 15 Oct 2008 | 8:05 pm Drill-baby-drill, meet $75 oil"Drill-baby-drill!"Source: Business and financial news - CNNMoney.com | 15 Oct 2008 | 8:04 pm UBS's Harris Sees `Another Year' of Rising UnemploymentSource: Bloomberg - All Podcasts | 15 Oct 2008 | 7:59 pm Eisenbeis Says Government Rescue Needs `Exit Strategy'Source: Bloomberg - All Podcasts | 15 Oct 2008 | 7:56 pm Cuomo to AIG: No more partiesRead full story for latest details.Source: Business and financial news - CNNMoney.com | 15 Oct 2008 | 7:36 pm EU backs emergency accounting changesAccounting rules blamed by some banks for exacerbating the financial turmoil were eased in the EU, bringing its 27 countries in line with changes agreed by international accounting rulemakersSource: FT.com - US homepage | 15 Oct 2008 | 7:06 pm Bailouts At a Glance
Source: Portfolio.com: Top 5 | 15 Oct 2008 | 7:00 pm Summit's Samples Sees `Monster Sell-off' If No Oil Output CutSource: Bloomberg - All Podcasts | 15 Oct 2008 | 6:56 pm Cities can't afford loans for basicsLocal governments are feeling the pinch from the credit crisis. Water, sewer and road repairs are taking a backseat as governments try to scrounge up enough cash to keep cities running. Sylvia Maria Gross reports.Source: Marketplace | 15 Oct 2008 | 4:46 pm LettersThe Marketplace mailbox this week received not only comments, but questions -- good ones. Kai Ryssdal rounds up Senior Business Correspondent Bob Moon to answer some of them.Source: Marketplace | 15 Oct 2008 | 4:46 pm Tech advances fuel solar industryThe credit crisis is taking its toll on businesses, but there's optimism in the solar energy sector. Sarah Gardner reports that new technolgies and cheaper materials have improved solar's market potential.Source: Marketplace | 15 Oct 2008 | 4:46 pm Where's this bailout cash coming from?The Fed soon starts lending directly to corporations, plus it's pledged unlimited dollars to foreign central banks. So, just how much is this gonna cost, and where's the Fed getting the money? Steve Henn finds out.Source: Marketplace | 15 Oct 2008 | 4:45 pm Can cheap commodities be a bad thing?With oil prices slipping below $75, prices for corn, gold and other commodities are also down. That's good news for consumers, but what about the overall economy? Will it spark inflation? Nancy Marshall Genzer has answers.Source: Marketplace | 15 Oct 2008 | 4:45 pm Now, the shipping news is badThe latest indication of global economic slowdown comes from something called the Baltic Dry Index. It tracks the price of hauling commodities like oil and grain. Those prices are at the lowest point in five years. Jeremy Hobson reports.Source: Marketplace | 15 Oct 2008 | 4:45 pm Santa could be hauling a lighter loadThe economy is keeping shoppers out of stores and retail numbers prove it. They dropped to a three-year low. The downward trend is likely to keep holiday shopping lists on the small side this year. Danielle Karson has more.Source: Marketplace | 15 Oct 2008 | 4:45 pm Can bailouts keep panic at bay?The bailout plans from the U.S. and other countries do seem to be calming nerves in the financial sectors at least a little bit. Kai Ryssdal asks MIT economist Simon Johnson if this is the beginning of the end.Source: Marketplace | 15 Oct 2008 | 4:45 pm The Long Road BackAs stocks slid on fears that a recession will sharply curtail profit growth, Ben Bernanke cautioned that even with the government's intervention in the banking system, the economy is a long way from a recovery. In the question and answer session that followed his speech, the economist Martin Feldstein asked about how the government reacted to Lehman's troubles and whether it could have been handled differently. Lehman, he said, was seen as a “symptom” of the problem, wherein the financial firm seen as the weakest comes under intense pressure. Helicopter Ben Strikes Again Does the Fed Really Need to Keep the PDCF Into '09? Why Lehman Wasn't Saved Source: Portfolio.com: Top 5 | 15 Oct 2008 | 4:30 pm New Course for Air ForceNot too long ago, the Air Force was looking to cut 40,000 people from the service, to pay for more planes. Now: Reverse thrust! The Air Force brass wants to add an extra 13,000 flyboys by 2010. To help pay for the new troops, they'll retire more than 300 fighter jets early. In all, the service plans to retire 137 F-15s, 177 F-16s and nine A-10s, according to internal Pentagon documents obtained by Inside Defense. That's more than 10 percent of the existing fleets. And it means that the F-15s will be retiring seven years early; the F-16s' service times will be cut short by six years; and the A-10s will head to the boneyard 11 years ahead of schedule. To make up for the retired planes, the Air Force allegedly wants to ramp up production of the controversial F-35 Joint Strike Fighter stealth jet. "If true, the U.S. Air Force is taking a huge gamble here. The Lockheed Martin F-35A is not scheduled to enter service until at least two years after the aircraft it replaces would [LEAVE] service, and there's still big uncertainty that Lockheed can stick to the F-35 program's flight test and development schedule," Stephen Trimble says. If there's extra cash left over, the service could bankroll some of the new jobs, which will likely come in drone and nuclear-handling positions, Air Force Times reports. There's also supposed to be "a major push to modernize" older fighters and bombers, according to Inside Defense. And a bunch of R&D projects to make bombs and missiles more deadly. Or until there's another change of course. Related LinksWing Men The Hardest Sell in Advertising? Pentagon Corruption Probe Widens Source: Portfolio.com: Top 5 | 15 Oct 2008 | 3:30 pm Fortis's Ballard Sees Gradual Return of Inter Bank LendingSource: Bloomberg - All Podcasts | 15 Oct 2008 | 3:29 pm Silvia Quandt's Abramowicz Says Intel `Undervalued'Source: Bloomberg - All Podcasts | 15 Oct 2008 | 2:54 pm Loving LiborOver the last year, the Libor emerged from the obscure corners of international banking to become a worry for consumers, businesses, and investors.As a thermometer of banks' willingness to lend to one another, it has been stuck well below freezing. Now there are signs of a thaw. For the second day, Libor rates for the cost of borrowing in dollars, euros, and pounds fell. The three-month dollar Libor rate is at 4.55 percent, down from 4.75 percent on Monday. "Government participation in the banks, along with the huge liquidity operation, is flooding the financial system, which is having the desired effect on Libor," David Keeble, head of fixed-income strategy at Calyon in London, told Bloomberg News. A decline in Libor is essential to restart the flow of lending and to stave off rate increases on mortgages and other consumer loans that could derail a recovery. Bloomberg has the remarkable factoid that Libor is used to set the rates on financial contracts worth $53,500 for every single person on the planet. The Wall Street Journal notes that there have other signs of a thaw, with some easing in the corporate bond and commercial-paper markets. Yet the Libor remains at historically high levels. As Felix Salmon noted, "The fact is that the credit market is a supertanker, based on trust, not speculation. As such, it takes a very long time to turn around." Related Links A Dark Morning What to Do About Libor Flood the Zone Source: Portfolio.com: Top 5 | 15 Oct 2008 | 1:00 pm Banks Back to BusinessIn the New York Times' recounting of the Monday meeting of bank chieftains at the Treasury Department, Jamie Dimon of J.P. Morgan Chase and Ken Lewis of Bank of America are portrayed as the wise statesmen of the banking industry.In its third-quarter results today, J.P. Morgan showed just how much it is a leader. The bank reported an unexpected profit of $527 million, surpassing analysts' expectations for a loss. Given the continued weakness in home loans and J.P. Morgan's exposure to it, it is remarkable that the bank could still post a significant profit in the quarter. Revenue fell 8.5 percent, to $14.74 billion. Still, Dimon was not encouraging: "Given the uncertainty in the capital markets, housing sector, and economy overall, it is reasonable to expect reduced earnings for our firm over the next few quarters." The quarter included mortgage-related write-downs of $2.6 billion and $1 billion in write-downs on leveraged loans. The bank also reported a loss of $640 million stemming from its emergency takeover of the savings and loan Washington Mutual. As the financial system teetered this year, J.P. Morgan has been one of the pillars of strength, salvaging both Bear Stearns and WaMu. To be sure, it has been buffeted by the credit crunch, taking some $22 billion in write-downs to date. But as the financial panic eases, J.P. Morgan Chase is expected to solidify its position and gain market share. Another pillar of strength has been Wells Fargo. Its chairman, Richard Kovacevich, was described in the Times' and Wall Street Journal's accounts of the Monday meeting as being the most critical of the Treasury's plan. In the end, he and everyone else signed the agreement. Reasons for Wells' confidence that it could go it alone without a government injection were on display today. The bank reported earnings of $1.64 billion, or 49 cents per share—higher than forecasts. Like J.P. Morgan's profit, it was down significantly from the quarter a year ago. Wells said that it had 15 percent growth in loans and 10 percent increase in deposits for the quarter. Related Links WaNo J.P. Morgan Hits It Out of the Park What Does Wells Want? Source: Portfolio.com: Top 5 | 15 Oct 2008 | 12:00 pm
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A lot of people on Wall St. were worried about the future of Merrill Lynch (MER) and were glad when Bank of America (BAC) bought it. Now, Bank of America may be unhappy.
Nokia (NOK) is a great company for two reasons. It has been run so well that it has nearly 40% of the global cellphone business even though it is headquartered in an obscure European country. But, it is also a perfect proxy for how well the cellular business is doing worldwide. For over a decade people from China to Italy have been buying handsets in increasing numbers. In the US some estimates say that there are more cellphones than there are people. 
Markets in Asia fell sharply.
