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Bad tidings in the retail realmThat ugly 733-point nose dive by the Dow Jones industrial average on Wednesday? Blame Eva Metoyer.Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Flickers of a bygone eraLocation: Hancock Park neighborhood of Los AngelesSource: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Bad tidings in the retail realmThat ugly 733-point nose dive by the Dow Jones industrial average on Wednesday? Blame Eva Metoyer.Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am Fit for a Hollywood mogulThe restoration of a Hancock Park home built by Harry Warner retains the integrity of the original design. Hollywood's...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Fit for a Hollywood mogulThe restoration of a Hancock Park home built by Harry Warner retains the integrity of the original design.Hollywood's early movie moguls, like today's, thought big when it came to their castles. Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am Bush, Sarkozy to meet as signs of recession mountNEW YORK (Reuters) - President George W. Bush holds talks on Saturday with European leaders hoping to pave the way for an overhaul of the global financial regulatory system, amid growing evidence the world is sliding toward recession.Source: Reuters: Business News | 18 Oct 2008 | 2:11 pm Bush says economy will bounce back in the long runPresident Bush on Saturday sought to reassure Americans about the cost and scope of the nation's financial bailout plan and said that in the long run "our economy will bounce back." ...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 2:10 pm Swiss socialist leader plans legal action against ex-UBS bossThe chairman of Switzerland's Socialist Party said Saturday he plans to lodge a civil complaint against the former head of UBS amid growing anger at the 60-billion-franc bailout of the bankSource: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 1:36 pm When Will The Rest Of Ford's (F) Board Leave?
Ford (F) may have some trouble with these rules and regulations. Yesterday, two of its most prominent board members left: John R.H. Bond and Jorma Ollila. Bond is chairman of Vodafone (VOD). Ollila is chairman of Nokia (NOK) and Royal Dutch Shell (RDS). Neither is exactly at retirement age. Their departure follows that of the Ford CFO by less than a week. Ford still has eleven board members, but, the company is in such deep trouble, others may leave. Some analysts think that Ford could run low on money next year. Bond and Ollila said they were worried that they could not spend adequate time working with Ford while it muddles its way though the global automotive crisis. Each said he would need to spend more time in Europe which is moving into a deep recession. Some of Ford's other board members may have to leave. Ford does not have a real public company board. The Ford family control the vote, so it may not need a full complement of directors. Here are some of the other people on Ford's board and why they may leave: Stephen Butler is the retired head of KPMG. The accounting firm may need him back because it will be required to spend additional time looking at the complex year-end write-offs at clients in the banking and brokerage industries. Kimberly Casiano is president of Casiano Communications, a publishing and direct marketing firm in Puerto Rico. She may resign because she has absolutely no qualifications to be on the board of a multi-national car company, or any other large corporation for that matter. Irvine Hockaday is the retired CEO of Hallmark Cards. A recession could do subtantial damage to the greeting card business and he might be called upon to take back his old job to steer the company through a very difficult period. Richard Manoogian is chairman of Masco (MAS) a home improvement and contruction materials company. Since the housing market is in its worst slump since The Great Depression, his firm will require all of management's time to save the company. Ellen Marram runs the Barnegat Group. She has worked at Seagram and Tropicana. Since Barnegat is an obscure business advisory firm, she may not be renominated due to lack of credentials. Homer Neal is a professor of Physics at The University of Michigan. In order to get the grants to hold onto his large salary at U of M will require much more of his time during a recession. Gerald Shaheen is the head of Caterpillar (CAT). The global downturn in heavy construction will almost certainly undercut his company's earnings and keeping Cat on track will require more and more of his time. John Thortan is a former senior executive at Goldman Sachs (GS) and is now a professor at Tsinghua University in Beijing. Since China is replacing the US as the leading global economic power, he may simply decide that spending time working in the declining American business environment is not worth his effort. That will leave CEO Alan Mulally, William Clay Ford, Jr. and Edsel Ford II to go down with the ship. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Oct 2008 | 1:33 pm 5 cutting-edge ways to use wind powerSource: Business and financial news - CNNMoney.com | 18 Oct 2008 | 1:06 pm NewsWatch: It's tough being a hedge fund managerTo say that Andrew Lahde "hates" the hedge fund business would be an understatement. He’s shutting down his small California hedge fund, Lahde Capital, and vows never to manage money for other people again. The fund is notable for having returned 866 percent betting against the subprime collapse.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 1:00 pm Gas prices sink below $3Gasoline prices continued to slip, tumbling below $3 a gallon for the first time in nearly nine months, according to a daily survey of credit card swipes released Saturday.Source: Business and financial news - CNNMoney.com | 18 Oct 2008 | 12:39 pm It's tough being a hedge fund managerTo say that Andrew Lahde "hates" the hedge fund business would be an understatement. He’s shutting down his small California hedge fund, Lahde Capital, and vows never to manage money for other people again. The fund is notable for having returned 866 percent betting against the subprime collapse.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 12:18 pm Latin American Markets: Stocks end mixed but log first weekly gains since SeptemberMajor Latin American markets finish mixed Friday with Brazilian and Mexican shares unable to retain gains during the last stages of the session, but the region’s benchmark indexes manage to post weekly advances.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 12:07 pm Wyoming: Drill baby, U.S.A.CNNMoney.com's special report puts you in rural Wyoming where a modern-day energy rush is changing life in this still-wild frontier. Read the stories, watch the videos and voice your opinion.Source: Business and financial news - CNNMoney.com | 18 Oct 2008 | 12:01 pm Personal Finance Daily: The week's 10 best Personal Finance stories: Oct. 13-17In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Oct. 13-17:Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 12:01 pm UPDATE 1-Libya to raise UniCredit stake to 5 pct-cbank chiefMILAN, Oct 18 (Reuters) - Libya will continue buying UniCredit shares until its stake in the Italian bank reaches 5 percent, its central bank governor told a newspaper, adding it had also bought stock...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 11:36 am Are Record Junk Bond Defaults & Outflows Growing Into Opportunities? (PHK, HIX, HYV, HYG, JNK)
Imagine the rate which companies of lower credit have to issue debt at to attract investors today. Now throw in outflows from fund managers who manage junk bond funds only adding to the lack of liquidity. AMG recently noted more than $470 million flowed out of junk bond funds a week ago and said some $590 million was the latest week's outflows from junk bond funds. That is the equivalent of losing the assets of several entire closed-end bond fund per week. A week ago we saw a report from Moody's showing that the junk default rate would rise sharply to 4.2% by the end of 2008. It also said default rates could jump to a sharp 7.9% one year out. Moody's said that September's default rate of 2.8% was the highest in four years and double the rate of a year ago. Now S&P has put junk default rates at even higher levels. By September 2009 it sees defaults reaching 7.6% and under its pessimistic scenario it noted default rates running possibly as high as 9.6%. Reliant recently paid 14% for its capital depending upon your calculation. To make matters worse, many junk rated companies have to start issuing debt again next year. If the credit markets stay very soft along with highly volatile markets and a weakening economy with recession numbers just hitting the tape, then many junk bond holders are going to find themselves asking how much more risk they are willing to take on. Wait until defaults actually do start to post serious gains and see how investors will treat the junk bond field. Some of the closed-end funds and ETN's below will spell out some of the carnage we are seeing as a result of recent volatility and credit market malaise: The PIMCO High Income Fund (NYSE: PHK) closed down almost 3% Friday at $7.04. This is down 50% from its 52-week high of $14.10, and the yield is now over the whopping 20% mark. The Western Asset High Income Fund II Inc. (NYSE: HIX) closed up over 2% at $5.88 today and it too has nearly lost half of the value from its 52-week highs. Its yield is roughly 18% at the current dividend rates. The BlackRock Corporate High Yield Fund V, Inc. (NYSE: HYV) closed up 4% Friday at $6.94 and it has also lost close to half its value over the last year and now yields roughly 18% at current payout rates. For an ETN, the iShares iBoxx $ High Yield Corporate Bd (AMEX: HYG)
has lost more than 30% of its value from highs of the last year and its
dividend at current rates is north of 10% if those payouts are steady. For another ETN, the SPDR Lehman High Yield Bond (NYSE: JNK) has
lost close to one-third of its value and after a near-6% drop Thursday
and another 1% Friday its yield is over 12% at current payout rates. At some point these will become almost too cheap to ignore. Junk bonds are at spreads and levels that have never been seen in most of our careers. But the other issue is that investors have been fleeing the sector relentlessly and we are formally just entering the recession now. Wait until investors actually start reading about all the junk quality bond defaults reaching levels that haven't been seen since the 1980's since before a zany man named Michael Milken entered the stage. Closed-end bond funds used to trade at high premiums to their net asset values, but now most trade at substantial discounts. Tight credit markets have always unlocked before. Bad times do always pass. In the end, there will have been one great opportunity to buy these funds at a major discount. Whether that time is now or in 2009 is still an unfinished chapter. Jon C. Ogg Source: 24/7 Wall St. | 18 Oct 2008 | 11:01 am Russia promises state aid for crisis-hit companiesThe Russian government will offer credit to companies in the agriculture, defence, energy, construction and automotive industries hit by the financial crisis, the Kremlin said on Saturday.Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 10:56 am Libya to raise UniCredit stake to 5 pct-Libya cbank chiefMILAN, Oct 18 (Reuters) - Libya will continue buying UniCredit shares until its stake in the Italian bank reaches 5 percent, Libyan Central Bank Governor Farhat Omar Bin Guidara said in a newspaper interview...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 10:31 am Stocks to Watch: Stocks in focus for MondayAmong the companies whose shares are expected to see active trade in Monday's session are American Express, Texas Instruments, SanDisk and Lockheed Martin.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 10:28 am Pakistan central bank cuts cash ratio to inject liquidityPakistan's central bank moved to inject liquidity into the country's struggling financial system on Saturday by cutting the amount of cash commercial banks must hold in reserve.Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 10:18 am Auto Review: 2009 Hyundai GenesisThe 2009 Hyundai Genesis is an impressive first effort, but how many customers will trek into a Hyundai dealer for luxury wheels?Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 10:00 am Energy bills often 'inaccurate'New consumer watchdog Consumer Focus warns customers they could be paying higher prices for gas and electricity they used before the price rises kicked in.Source: BBC News | Business | World Edition | 18 Oct 2008 | 7:47 am U.S. Venture Investment Drops 7% to $7.37 Billion in 3Q08Dow Jones VentureSource Finds VC Focus Shifts to Existing Portfolio Companies; Renewable Energy Attracts Record $1B; SF Bay Area See Most Investment Since 2001 SAN...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 7:01 am U.S. carmakers' renewal means vast retoolingDetroit plans to spend billions on renovating plants to manufacture fuel-sipping, profitable European models here.Next month in Britain, Ford Motor Co. will begin selling a diesel hatchback that gets 64 miles per gallon. Across the channel, Parisians can buy a new gas-powered compact made by General Motors Corp. that gets a nifty 47 mpg. Source: L.A. Times - Business | 18 Oct 2008 | 7:00 am Pfizer settles most of its Bextra lawsuitsBoth the withdrawn pain reliever and Celebrex are covered in the agreement. Drug giant Pfizer Inc. has reached...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am Strapped Redstone tries to renegotiate $1.6-billion loanThe media mogul may have to sell more CBS and Viacom shares to make $800-million payment, experts say.With pressure mounting on media mogul Sumner Redstone to dig his way out of his own credit crisis, the billionaire's privately held firm, National Amusements Inc., was scrambling Friday to renegotiate a $1.6-billion bank loan. Source: L.A. Times - Business | 18 Oct 2008 | 7:00 am U.S. carmakers' renewal means vast retoolingDetroit plans to spend billions on renovating plants to manufacture fuel-sipping, profitable European models here. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am High cost of flying forces jet-setters to trade downCorporate jets are being bumped in favor of less-luxurious turboprop or piston-driven planes. Some celebrities are even flying coach.Stars really are just like us. Celebrities and other VIP types increasingly are bypassing snazzy fuel-guzzling private jets for something less glamorous, maybe even flying -- can you believe it? -- coach. Source: L.A. Times - Business | 18 Oct 2008 | 7:00 am Time for banks to take a deep breath, start lending againThere are signs that the global panic has eased. Now it's time for the world's bankers to get credit flowing freely againIt only took trillions of dollars of government cash and guarantees, but the fear gripping global markets finally has begun to ease. Source: L.A. Times - Business | 18 Oct 2008 | 7:00 am Mervyns to liquidate remaining storesThe ailing department-store chain is the latest to fall as the weakening economy takes its toll on retail sales. Store closings could prove a blessing for holiday shoppers, however.After 59 years in business, the Mervyns department-store chain called it quits Friday -- promising a huge going-out-of-business sale just in time for the holidays. Source: L.A. Times - Business | 18 Oct 2008 | 7:00 am California unemployment holds steady at 7.7%The September number does not reflect the more recent financial crisis. Economists predict that unemployment will rise. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am Stocks end back-and-forth session mixedNEW YORK -- Stocks have ended a tumultuous two-week run relatively quietly, finishing another back-and-forth session mixed.Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am Strapped Redstone tries to renegotiate $1.6-billion loanThe media mogul may have to sell more CBS and Viacom shares to make $800-million payment, experts say. With pressure...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am Home construction falls sharply in SeptemberThe larger-than-expected decrease signals that 2007 could be the slowest year for home builders in six decades. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am High cost of flying forces jet-setters to trade downCorporate jets are being bumped in favor of less-luxurious turboprop or piston-driven planes. Some celebrities are even flying coach. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Oct 2008 | 7:00 am Next treasury boss will feel power - and stressThe next president's choice of a treasury secretary may well be the most important appointment he'll make _ someone to grab the reins of a trillion-dollar-plus program to shore up the...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 6:07 am Honda's hydrogen car is smooth but has hindrancesFor years, hydrogen fuel cell vehicles have been the far-off technological bets of the auto industry _ the car that holds the promise of gasoline-free driving. Honda Motor Co. is...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 5:50 am 1919 farm crisis shows some bailouts hard to undoSound familiar? So went the farm crisis of 1919. Global volatility in commodity prices threatened U.S. families back then in much the same way today's sinking housing prices led to a...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Oct 2008 | 5:43 am Market Snapshot: Stocks to look for stability along with data, earningsU.S. stocks will start the next week with some optimism that the market’s recent efforts to stabilize will continue, even as the outlook for the economy and earnings get worse from the fallout of the credit crisis.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 4:01 am Former Lehman Brothers CEO subpoenaedFormer Lehman Brothers CEO Richard Fuld has been subpoenaed in connection with three grand jury probes into the investment bank's bankruptcy, a source with direct knowledge of the bankruptcy filing told CNN Friday.Source: Business and financial news - CNNMoney.com | 18 Oct 2008 | 1:36 am Germany approves trillion-dollar bailoutBERLIN - Germany's Parliament has overwhelmingly approved a 500 billion euro (NZ$1.09 trillion) rescue package for the country's financial markets. "We hope that the law passed today will hinder the worst from happening to the...Source: New Zealand Herald - Business | 18 Oct 2008 | 1:18 am Beauty More Than Skin DeepThe cosmetics and personal care products business is sitting pretty. In times of economic turmoil, like now, the segment is seen as a conservative...Source: Investor's Business Daily: BUSINESS | 18 Oct 2008 | 1:08 am Trends & Innovations - FridayPlug-in takes aim at media biasSource: Investor's Business Daily: BUSINESS | 18 Oct 2008 | 1:08 am After Stumble, Cosmetics Giant Hatches Plan To Restore StatureSometimes it takes a setback to propel a company. That's what happened at Avon Products.Source: Investor's Business Daily: BUSINESS | 18 Oct 2008 | 1:08 am In Brief - FridayEMS Technologies (ELMG), which makes wireless gear used in aircraft, forecast Q3 EPS of 35-40 cents vs. views of 38 cents. It backed its '08 EPS...Source: Investor's Business Daily: BUSINESS | 18 Oct 2008 | 1:08 am Business Briefs - FridayHoneywell EPS tops, guides low. The diversified manufacturer said Q3 EPS rose 20% to 97 cents, beating views by 2 cents. Revenue gained 6% to...Source: Investor's Business Daily: BUSINESS | 18 Oct 2008 | 1:08 am GM sends Hummer sales book to potential buyers (Reuters)
Source: Yahoo! News: Business | 18 Oct 2008 | 12:13 am GM sends Hummer sales book to potential buyersDETROIT (Reuters) - General Motors Corp has sent a sales prospectus for Hummer to potential bidders as it scrambles to shore up its cash amid a sharp downturn in global auto sales.Source: Reuters: Business News | 18 Oct 2008 | 12:13 am Muriel Siebert Calls Market Regulators `A Little Sloppy'Source: Bloomberg - All Podcasts | 17 Oct 2008 | 11:57 pm Blog: Santa Monica hedge fund manager's angry goodbyeSource: L.A. Times - Business | 17 Oct 2008 | 11:52 pm Branson Says Virgin Airlines to Benefit From CrisisSource: Bloomberg - All Podcasts | 17 Oct 2008 | 11:43 pm Oil rises $2 on OPEC and global marketsNEW YORK (Reuters) - Oil jumped $2 to near $72 a barrel on Friday, spurred by a broader rise across financial markets and expectations OPEC could cut output at an emergency meeting next week.Source: Reuters: Business News | 17 Oct 2008 | 11:38 pm Carlyle sues Novolipetsk over mergerCarlyle Group sued Russian steelmaker Novolipetsk this week for trying to back out of a $3.53bn merger agreement – landing another potentially failed buy-out deal in court, but this time with the parties' more common roles reversedSource: FT.com - US homepage | 17 Oct 2008 | 11:34 pm Fallout from financial crisis hammers housing (AP)
Source: Yahoo! News: Business | 17 Oct 2008 | 11:26 pm Volatile Trading, GM's Campaign, Sports Hurt By EconomySource: Bloomberg - All Podcasts | 17 Oct 2008 | 11:24 pm Learning to believe in banksHost Tess Vigeland talks to author Margaret Atwood about the place of lending in our society and the importance of trust in keeping the system working properly.Source: Marketplace Money | 17 Oct 2008 | 11:13 pm Weekend Investor: You can buy into this bear market if you know the trapsYou survived the stock-market crash of 2008. Congratulations. Now comes the hard part: Buying stocks and mutual funds that can survive -- and even thrive -- in the bear market.Source: MarketWatch.com - Top Stories | 17 Oct 2008 | 11:01 pm All systems Gü for chocoholic entrepreneur James AverdieckIf the Belgians had been a little more understanding about his margarine, James Averdieck would not today be Britain's unchallenged chocolate pudding king.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Investors turn their worries on Aviva and PrudentialFears that Britain’s two biggest insurance companies could be forced into emergency capital raisings sparked a sharp sell-off in shares across the sector yesterday.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Russia taps sovereign fund to save marketsThe Russian Government said that it would tap its sovereign wealth fund to buy shares in Russian companies and shore up values in the collapsing Moscow stock markets.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm India prepares for wave of strikesIndia is braced for a winter of discontent as the economy slows and millions of disgruntled workers, from Bombay's taxi drivers to the staff of the central bank, prepare to strike.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Homeowners to miss out as tracker loan providers refuse to cut rates below a minimumThousands of borrowers will miss out on cheaper mortgage bills because some of the biggest lenders prohibit interest rates on their tracker loans from falling below a minimum threshold.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Northern Rock accused over level of repossessionsDebt charities have accused Northern Rock, the state-backed bank, of “aggressively” repossessing the properties of mortgage borrowers who have been struggling to meet repayments.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Lights! Camera! Bring cheer to the joblessIf ever there was a time when Americans wanted the diversions of movies and television, it is now,” the Alliance of Motion Picture and Television Producers said a couple of weeks ago.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Brussels ruling dashes hope of early dividendShareholder hopes that the three banks receiving rescue capital injections from the Government could start to pay out dividends again after only one year appeared to be dashed yesterday.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Opec's weakest must bow to will of the SaudisIt may be good news for drivers filling up at the pumps, but the dramatic fall in the global price of crude could have grave consequences for the public finances of many oil-producing nations, especially against a backdrop of a broadening global economic crisis.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Sports Direct takes friendly 5% in JJB SportsSports Direct, which is run by Mike Ashley, has taken a 5 per cent stake in JJB Sports, which is headed by Chris Ronnie, a close friend. The move will trigger speculation of a future tie-up between the two companies.Source: Latest Business News from Times Online | 17 Oct 2008 | 11:00 pm Fuld and other Lehman executives subpoenaedDick Fuld, Lehman Brothers chief executive, is among 12 executives who have received subpoenas related to federal investigations into the events leading up to the company's bankruptcy filing last monthSource: FT.com - US homepage | 17 Oct 2008 | 10:57 pm Funds saw $104.4 bln outflows in September: LipperBOSTON (Reuters) - Investors pulled out a record $104.4 billion from U.S. mutual funds in September as they were spooked by the credit crisis and turmoil in financial markets, research firm Lipper Inc said on Friday.Source: Reuters: Business News | 17 Oct 2008 | 10:49 pm Corporate governance takes back seat in bank bailoutsSAN FRANCISCO (MarketWatch) -- The U.S. Treasury's plan to invest $125 billion in nine of the country's largest banks will do little to advance the corporate governance movement, experts said on Friday.Source: MarketWatch.com - Top Stories | 17 Oct 2008 | 10:48 pm EBay draws $1 billion from revolving credit facilitySAN FRANCISCO (Reuters) - EBay Inc said on Friday it had borrowed $1.0 billion under its revolving credit facility, with funds going toward its pending acquisition of payments services Bill Me Later and other general corporate purposes.Source: Reuters: Business News | 17 Oct 2008 | 10:46 pm Currencies: Dollar edges up vs. most rivals as investors eye volatile marketsThe dollar gains slightly against the euro and other major rivals and is steady against the yen, as sharp swings in equities trading make it difficult for investors to gauge risk.Source: MarketWatch.com - Top Stories | 17 Oct 2008 | 10:05 pm Has eBay hit its twilight?Ever since eBay announced significant fee and feedback changes earlier this year, angry sellers have complained that eBay's new policies would destroy the businesses of some of its longtime merchants. This week, eBay CEO John J. Donahoe confirmed that those charges are true.Source: Business and financial news - CNNMoney.com | 17 Oct 2008 | 10:02 pm Wall Street slips as recession worries nagNEW YORK (Reuters) - Stocks fell on Friday on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction, but the Dow still snapped a disastrous three-week losing streak with it best weekly gain in more than 5 years.Source: Reuters: Business News | 17 Oct 2008 | 9:56 pm Bush, Sarkozy to meet as signs of recession mount (Reuters)
Source: Yahoo! News: Business | 17 Oct 2008 | 9:55 pm Stocks down for day, up for weekStocks ended a choppy session lower Friday - at the end of a turbulent week - as ongoing recession fears vied with Google's earnings and bullish comments from Warren Buffett.Source: Business and financial news - CNNMoney.com | 17 Oct 2008 | 9:53 pm GM offers buyouts to close Ohio plantDETROIT (Reuters) - General Motors Corp will pay $1.6 billion into a health-care trust for retirees and offer buyouts of up to $140,000 to union-represented factory workers in exchange for an agreement to close an SUV plant in Ohio by the end of the year.Source: Reuters: Business News | 17 Oct 2008 | 9:51 pm Credit squeeze loosensBank-to-bank lending rates dipped again Friday, an indication that government moves to juice the economy with money supply was having an effect.Source: Business and financial news - CNNMoney.com | 17 Oct 2008 | 9:41 pm VIX Index of U.S. Stock Option Prices Advances 4% to 70.33Source: Bloomberg - All Podcasts | 17 Oct 2008 | 9:39 pm University of California's Navarro Sees Global Bear MarketSource: Bloomberg - All Podcasts | 17 Oct 2008 | 9:36 pm Economic Diary on U.S. Leading Indicators, Home SalesSource: Bloomberg - All Podcasts | 17 Oct 2008 | 9:32 pm Oil prices up before Opec meetingOil prices rise, buoyed by Opec's decision to bring forward its emergency meeting to next week, adding to expectations that production will be cut.Source: BBC News | Business | World Edition | 17 Oct 2008 | 9:27 pm Even Hollywood is hurtingEven in the land of make-believe, where the meltdown on Wall Street feels a million miles away, these are tense days. While no one can say for sure how the financial crisis will affect Hollywood, a prevailing view is that the film business is relatively protected for at least a year or two, but that the TV industry which was already impacted by last winter's writers' strike could be in for a rocky ride.Source: Business and financial news - CNNMoney.com | 17 Oct 2008 | 9:22 pm On the Ball: NBA Draft Rule, Financial Crisis and SportsSource: Bloomberg - All Podcasts | 17 Oct 2008 | 9:07 pm US stocks slide on housing dataLeading US shares close down, after figures showed a sharper-than-expected drop in the number of new homes being built.Source: BBC News | Business | World Edition | 17 Oct 2008 | 9:06 pm Take a ride on the fear express!There is a ride at the Six Flags Great Adventure theme park in New Jersey called the Great American Scream Machine. Rumor has it that it will soon be renamed to give it a much more frightening moniker: The Dow.Source: Business and financial news - CNNMoney.com | 17 Oct 2008 | 9:01 pm Buffett's "buy now" call gets lukewarm receptionNEW YORK (Reuters) - Warren Buffett tried to persuade demoralized investors the U.S. stock market is not falling off a cliff. Not everyone was immediately convinced.Source: Reuters: Business News | 17 Oct 2008 | 9:00 pm Buffett's "buy now" call gets lukewarm reception (Reuters)
Source: Yahoo! News: Business | 17 Oct 2008 | 9:00 pm Ensuring your insurance's safetyInsurances companies invest just like the rest of us. How much risk do they face from the financial meltdown? Marketplace's New York Bureau Chief Amy Scott reports.Source: Marketplace Money | 17 Oct 2008 | 8:56 pm Trusting your financial plannerAnother person it's important to have faith in: the one managing your money. Host Tess Vigeland talks to Diahann Lassus about establishing a trusting relationship with your financial advisor.Source: Marketplace Money | 17 Oct 2008 | 8:56 pm RBS's Ruskin Says Japan `Squeezed' by Both East and WestSource: Bloomberg - All Podcasts | 17 Oct 2008 | 8:50 pm Wall Street ends in red in volatile sessionA wild week for Wall Street stocks that saw their biggest gain since the Depression and worst sell-off since 1987 drew to a close with another highly volatile session that ended in the redSource: FT.com - US homepage | 17 Oct 2008 | 8:44 pm Humboldt's Burda Says EU Acted `Decisively' on CrisisSource: Bloomberg - All Podcasts | 17 Oct 2008 | 8:37 pm Wall Street slips as recession worries nag (Reuters)
Source: Yahoo! News: Business | 17 Oct 2008 | 8:36 pm Confidence plunges among US consumersUS consumer confidence has fallen more sharply this month than in any since records began in 1978, raising fears that a retrenchment by households could prompt a deep recession. Meanwhile housing starts fell to their lowest level since 1991.Source: FT.com - US homepage | 17 Oct 2008 | 8:35 pm Cash under the mattressAs Americans lose confidence in banks and markets, there's always the safety of your own mattress. But as Rico Gagliano and the Marketplace Players explain, while we've been off investing elsewhere, the rules may have changed.Source: Marketplace Money | 17 Oct 2008 | 8:24 pm Getting PersonalEconomics editor Chris Farrell and host Tess Vigeland take questions on retirement savings, safety versus high returns and investing overseas.Source: Marketplace Money | 17 Oct 2008 | 8:24 pm The next president's challengeMarketplace host Kai Ryssdal talks to historian David Kennedy about the tools the next president will have at their disposal for battling America's financial crisis.Source: Marketplace Money | 17 Oct 2008 | 8:23 pm Taking a haircutHost Tess Vigeland visits a barber shop in Jefferson City, Missouri, to see how the customers there are reacting to the downturn in their investments.Source: Marketplace Money | 17 Oct 2008 | 8:23 pm A history of trust and confidenceTo better understand the odds we face in the current crisis, Marketplace host Kai Ryssdal and historian Sean Wilentz present a short history of high and low points of trust in America's economy.Source: Marketplace Money | 17 Oct 2008 | 8:23 pm Who backs the backstop?The FDIC promises that the money you put into the bank isn't going anywhere, even if the bank goes under. Host Tess Vigeland asks former FDIC chairman William Issac how that guarantee works.Source: Marketplace Money | 17 Oct 2008 | 8:23 pm What I'm doing: Lita Powell-DrakeMarketplace presents "Here's What I'm Doing," a series asking people from all walks of life how they're coping with the financial crisis. In this edition, Marketplace Money listener Lita Powell-Drake.Source: Marketplace Money | 17 Oct 2008 | 8:23 pm Lawmaker asks AIG for documents on U.S. fundingWASHINGTON (Reuters) - A top U.S. lawmaker has asked the chief executive of American International Group for details on how the company has used its $123 billion of taxpayer rescue funding so far.Source: Reuters: Business News | 17 Oct 2008 | 8:20 pm Hedge fund manager slams 'idiot' bankersAndrew Lahde, a hedge fund manager who made what is thought to be one of the biggest percentage profits of all time, bowed out of the business with a fierce attack on the "idiots" running big banksSource: FT.com - US homepage | 17 Oct 2008 | 8:13 pm Housing market and consumers on the ropesNEW YORK (Reuters) - Consumer confidence suffered its steepest monthly drop on record in October and construction starts on new homes fell to a 17-1/2 year low the previous month, as the financial crisis sent shock waves through the economy.Source: Reuters: Business News | 17 Oct 2008 | 8:10 pm UPS rates to increase nearly 6%Read full story for latest details.Source: Business and financial news - CNNMoney.com | 17 Oct 2008 | 8:01 pm Failed finance company sells chopper onlineThe owners of collapsed finance company Money Mart Direct have put their helicopter up for sale on auction website Trade Me for $3 million. The auction of the 2008 Eurocopter EC120B closes on October 27 and is under the name Palmytrades. Records...Source: New Zealand Herald - Business | 17 Oct 2008 | 7:57 pm Scandal costs Caisse d'Epargne €600mChristine Lagarde, French finance minister, ordered an inquiry into Groupe Caisse d'Epargne, the country's third-largest mutual savings bank, after it announced a €600m loss due to a trading scandalSource: FT.com - US homepage | 17 Oct 2008 | 7:45 pm Historian Sean Wilentz Says `Age of Reagan' Is OverSource: Bloomberg - All Podcasts | 17 Oct 2008 | 7:34 pm The Good, The Bad, The UglyPoorly performing hedge-fund managers who do not count HSBC Private Bank as a client are breathing a sigh of relief today. That's because Dealbreaker got its hands on HSBC's weekly investment performance review for all of its funds and promptly published it for all the world to see. John Paulson is nothing short of a phenomenal investor. After raking it in last year by placing smart bets against subprime loans, Paulson is again outperforming his peers consistently. Four of his funds landed in the "Top 20" list of performers year-to-date. Two of his other funds that didn't make that list are still in positive territory for the year. From Worst to First Hedge Funds: The Next Shoe to Drop The Shears are Out Source: Portfolio.com: Top 5 | 17 Oct 2008 | 7:30 pm Blog: Time to buy U.S. stocks, Buffett saysSource: L.A. Times - Business | 17 Oct 2008 | 7:29 pm Speculation over Powell backing for ObamaSpeculation was swirling that Barack Obama could be about to win the coveted endorsement of Colin Powell, the former US secretary of state, in the latest sign of fracturing Republican unity ahead of next month's electionSource: FT.com - US homepage | 17 Oct 2008 | 7:12 pm Principled financeHow is Islamic finance tackling the global crisis?Source: BBC News | Business | World Edition | 17 Oct 2008 | 6:39 pm India's central bank staff to strikeMass action will bring the Reserve Bank of India and large parts of the country's financial system to a halt on Tuesday. The almost daily launch of emergency measures to inject liquidity into the banking system will cease for the daySource: FT.com - US homepage | 17 Oct 2008 | 5:22 pm Poorer tourists could still bring riches to Latin America (AFP)
Source: Yahoo! News: Business | 17 Oct 2008 | 4:50 pm Nigeria cuts after oil price fallNigeria announces "serious" budget cuts because of big falls in the price of oil, at a special cabinet meeting.Source: BBC News | Business | World Edition | 17 Oct 2008 | 4:22 pm Redefining poverty in the U.S.The U.S. definition of poverty is more than 40 years old, and critics think it's time for an overhaul. Mayors from all over the country met in L.A. to come up with a plan for resetting the poverty line. Rachel Dornhelm has more.Source: Marketplace | 17 Oct 2008 | 4:17 pm Looking back to Bretton WoodsPresident Bush will meet with French President Nicolas Sarkozy at Camp David. It's not likely to lead to a worldwide summit because the president is in lame duck status. But Jeremy Hobson reports on something that might come up.Source: Marketplace | 17 Oct 2008 | 4:16 pm Week on Wall StreetAre we in a recession? A slowdown? A rebalancing? What happens next? Kai Ryssdal asks Mike Mandel, writer for BusinessWeek, and Johs Worsoe, senior executive vp, global markets, for Union Bank, for their thoughts.Source: Marketplace | 17 Oct 2008 | 4:16 pm A requiem for big investment banksInvestment banks like Bear Stearns and Lehman Brothers have been major casualties of the financial crisis. With investors skeptical about risk, is the investment banking model dead? London Bureau Chief Stephen Beard reports.Source: Marketplace | 17 Oct 2008 | 4:16 pm Don't get too used to lower gas pricesThe recent drop in oil prices might have us smiling at the pump now, but those lower prices could head back up. OPEC is expected to cut production during an emergency meeting next week. Nancy Marshall Genzer has more.Source: Marketplace | 17 Oct 2008 | 4:16 pm Checking the state of the auto industryReports say GM and Chrysler have stepped up merger talks, with GM running out of cash. Toyota, on the other hand, is promoting a new zero-financing initiative for 11 models. Ashley Milne-Tyte has more.Source: Marketplace | 17 Oct 2008 | 4:16 pm Housing construction slump continuesConstruction of new homes was expected to drop in September, but not to the lowest number in seven years. With builders and buyers unable to get loans easily, the decline is expected to continue. Mitchell Hartman reports.Source: Marketplace | 17 Oct 2008 | 4:16 pm Spanish airline suspends flightsPassengers are stranded as Spanish-based airline LTE International halts operations over financial problems.Source: BBC News | Business | World Edition | 17 Oct 2008 | 4:10 pm How much is too much for NZ Super Fund?The local investment industry stands to benefit massively from National's plan to direct a large portion of the "Cullen" fund into local assets but is far from unanimous in backing the plan. National leader John Key this week said...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Fund steps up Telecom attackTelecom has defended the launch timing for an expanded mobile phone network and profit downgrade, saying the board was still signing the $391 million expansion plan 90 minutes before telling the market. Local sharemarket analysts...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Weatherman of the fiscal stormStockbroker Ian Waddell has been through some turbulent times in his professional career. A 25-year veteran of equity trading, Waddell has lived through 1987's sharemarket carnage, the 1997 Asian crisis and 2000's popping of the...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Banks looking like Swiss cheeseLike Swiss chocolate, Swiss watches and Swiss knives, Swiss banking had a reputation for high standards and top quality. But Swiss banks have not been immune to the global financial crisis and the Government stepped in yesterday...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Brian Gaynor : Disturbing issues in Super Fund planJohn Key's proposal to allow the Minister of Finance to tell the New Zealand Superannuation Fund the proportion of funds it should invest in New Zealand is a disturbing development. It is disturbing because it raises the prospect...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Morocco makes sales pitchMorocco wants to capitalise on the international financial meltdown by luring European companies and tourists to its cheaper shores, the country's central bank chief said yesterday. Abdellatif Jouahri is confident his North African...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Paul Glass : Risks to taxpayer in rescue packageLast Sunday, at the height of the global financial crisis, the New Zealand Government and the Reserve Bank followed the lead of other Governments and central banks to shore up confidence in the banking system by guaranteeing retail...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm IBM profit jumps 20pcIBM's third-quarter profit jumped nearly 20 per cent, surpassing analyst estimates, as the company overcame slumping hardware sales and signed enough new services contracts. IBM had released partial results for the July-September...Source: New Zealand Herald - Business | 17 Oct 2008 | 4:00 pm Fears as Hungary warns on growthHungary cuts its 2009 growth forecast, as concerns grow about the impact of the global credit crisis on its economy.Source: BBC News | Business | World Edition | 17 Oct 2008 | 3:35 pm Housing market and consumers on the ropes (Reuters)
Source: Yahoo! News: Business | 17 Oct 2008 | 3:31 pm Crunch Time for SumnerIs Sumner Redstone on the ropes? Silicon Alley Insider points to a note from Rich Greenfield, an analyst with Pali Research, to clients today that describes the importance and urgency of the talks with creditors. Crushing debts have brought down media moguls in the past. Rupert Murdoch had a near-death experience in the early 1990s before News Corp. was able to cut deals with its banks. Like just about everything Redstone, there is family drama in this crisis. Greenfield says that the reason National Amusements has so much debt is a result of Redstone's divorce settlement from Phyllis Redstone, which was finalized in 2002. Sumner Redstone's Song of Himself Turmoil at Viacom Mel and Sumner, Together Again Source: Portfolio.com: Top 5 | 17 Oct 2008 | 3:30 pm EU plans Polish shipyard sell-offThe EU has a new plan to sell off Poland's ailing shipyards, which risk bankruptcy because of state aid.Source: BBC News | Business | World Edition | 17 Oct 2008 | 3:29 pm French bank admits trading lossThe French bank Caisse d'Epargne admits that it lost 600m euros in a derivatives trading incident.Source: BBC News | Business | World Edition | 17 Oct 2008 | 3:21 pm The Next Stocks That Could Go Under $1 (CHTR)(SIRI)(F)(LVLT)(ABK)(AIG)(NCC)(C)
Charter is in a pretty good business. As a cable provider it markets digital TV, broadband and VoIP services. The company has more than five million customers. It also has over $20 billion in debt. The stock changes hands at $.38. That compares with a 52-week high of $3.94 There are several other very well-known companies which could move below $1 and face problems with their exchange listings and their ability to attract new capital. Ford (F) has fallen from a 52-week high of $8.99 to $1.88 earlier this month. US cars sales in each of the last three months of the year could be more brutal than they were in the first three quarters. In addition to a slowing economy, car buyers, even those with reasonable finances, are finding it hard to get car loans. A number of auto industry analysts believe that Ford will get low on cash by the second half of next year. Level 3 (LVLT) appeared to have recovered from a share price which was hurt by the company's net losses earlier this year. It had cut its great hunger for buying and unsuccessfully integrating new operations. But, it has almost $7 billion in debt and extremely modest operating income. Shares have fallen from a 52-week high of $4.48 to $1.26. Any significant problems with its debt or a quarter or two of losses and the stock could go lower. Ambac (ABK) has done well recently. The bond insurance company indicated that it will try to get the federal government to buy its risky assets. That may not happen. Or, the toxic assets on the firm's balance sheet could become more troubled as the economy and housing market fail. The stock has been as low as $1.04. It trades at $3.04 now. It would only take one big dose of bad news to push it lower again. AIG (AIG) has to sell a lot of assets to get out from under the $89 billion it has borrowed from its federal government loan facility. There is already speculation that it is having trouble selling some of its best assets because of the credit market. The insurance company still has bad paper on its books and the value of that could certainly be falling. Management now gets to spend a lot of time with NYS Attorney General Cuomo. Not a good distraction during a turnaround. The stock traded at $1.25 earlier this year, and now sells for $2.12 a share. NCC (NCC) has recovered some from its balance sheet problems. Investors are speculating that the Paulson plan will help the bank rid itself of bad assets. It might even get Treasury to buy some of its shares to provide capital. There have also been rumors that a larger bank like Citigroup (C) will buy it. A quarter or two of bad write-offs and disclosures about the faltering value of its balance sheet could cut NCC down to size. It trades at $3.03 but was at $1.25 not terribly long ago. Douglas A. McIntyre Source: 24/7 Wall St. | 17 Oct 2008 | 3:15 pm Pakistan seeks $4bn financial supportPakistan said it was seeking a $4bn international assistance package that would have World Bank financial support as its cornerstone. The country's new democratic government is seeking support from the US, China, Saudi Arabia and multilateral lenders to help it fill a financing gap of $10bnSource: FT.com - US homepage | 17 Oct 2008 | 2:19 pm Warren Buffett's Likely New Personal Investments (BRK-A, WFC, GE, GS, KO, KFT, NKE, BNI)
He is keeping with his mantra of "Be fearful when others are greedy, and be greedy when others are fearful." Buffett says he can't predict the short-term movements, but he wants to buy stocks when they are battered and will be the clear winners with record profits in time frames of 5, 10, and 20 years down the road. Buffett is also noting that holding cash is not a smart investment. Here is his recent GE investment and here is his recent Goldman investment. Based upon his comments on those stocks, it would be very hard to imagine that Buffett didn't add those two stocks into his personal account. As Wells Fargo (NYSE: WFC) is one he has called the only triple-a bank and one of the best around, it is hard to imagine he would not have added to his position. Mr. Buffett is a creature of habit and that has led us to peruse other stock he might be buying as their shares have been on sale. We also looked at stocks where the fundamentals are fairly easy to see for many years. We'd be willing to bet that Buffett added to holdings of Coca-Cola (NYSE: KO), Kraft Foods (NYSE: KFT), Nike Inc. (NYSE: NKE), and perhaps as part of his recent synthetic trade in Burlington Northern Santa Fe (NYSE: BNI). Here is the full list of his other recent holdings in Berkshire Hathaway if you want to try guessing which other companies he's buying into.
Jon C. Ogg Source: 24/7 Wall St. | 17 Oct 2008 | 2:14 pm Bush says it will take time to unfreeze creditPresident Bush today defended the government's extraordinary series of interventions in the financial crisis, calling them measures of "last resort" that will ultimately work to restore the economy to stability.Source: L.A. Times - Business | 17 Oct 2008 | 1:26 pm US home building at 17-year lowConstruction of new US homes fell more than expected last month to reach its lowest level in more than 17 years, official figures show.Source: BBC News | Business | World Edition | 17 Oct 2008 | 1:25 pm Rite Aid Problems Mounting (RAD)
While firms have six months to rectify this issue, Rite Aid just announced that its board of directors has approved a reverse stock split. Shareholders will have to vote in December at a special meeting, but the company noted that it will either conduct a reverse split with ratios of 1-10, 1-15, or 1-20. Late yesterday, S&P lowered the corporate credit rating down to "B-" from "B" and the outlook is still negative. The downgrade sounds like a normal retail call as it noted that the economic downturn could hurt prescription and merchandise demand and also called its cash flow protection measures thin in a challenging operating environment. Traders love to see reverse stock splits. It generally gives them a chance to short sell all over again.
Jon C. Ogg Source: 24/7 Wall St. | 17 Oct 2008 | 1:14 pm Building a Lehman CaseThe credit-crunch postmortem is taking shape.A lawyer for Lehman Brothers said in U.S. bankruptcy court on Thursday that 12 Lehman Brothers executives have been subpoenaed in criminal investigations into the collapse of the firm. Zachery Kouwe of the New York Post reports that Dick Fuld is one of them. Federal grand juries have been convened in Manhattan, Brooklyn, and New Jersey. Prosecutors are examining whether Lehman made misleading statements about the financial health of the firm or overstated the value of its real estate portfolio. The criminal investigation helps explain Fuld's careful, slowly parsed testimony before a House committee earlier this month and his unwillingness to take any blame despite the anger of lawmakers. The preliminary investigation into Lehman, as well as those into American International Group, Fannie Mae, and Freddie Mac were reported last month. At the time, an unnamed government official told the New York Times that it was "logical to assume" that the four would come under scrutiny, given the manner in which they collapsed. Lehman's bankruptcy had a near-crippling effect on markets. That, and the fact that it was a Wall Street firm with a high-profile C.E.O., makes it the most likely target for ambitious prosecutors. Federal prosecutors in Brooklyn have already set the bar for future cases, winning an indictment against two former Bear Stearns hedge fund managers, accusing them of securities and wire fraud stemming from the collapse of two hedge funds that had invested heavily in pools of securities backed by subprime-mortgage debt. At the time, federal prosecutors indicated that they would look at other investment firms. The Bear case has raised concerns that prosecutors will be looking to criminalize incompetence or risk taking. And there will be plenty of examples of that to be found. Related Links The End of Lehman The Shears are Out Hedge Funds: The Next Shoe to Drop Source: Portfolio.com: Top 5 | 17 Oct 2008 | 1:00 pm Housing Starts Tank
Housing starts decreased 6.3% to a seasonally adjusted 817,000 annual rate, after falling 8.1% in August to 872,000, the Commerce Department said. Friday's data on starts showed building permits decreased 8.3% to a 786,000 annual rate in September. Economists had expected permits down 2.0% to a rate of 840,000. Douglas A. McIntyre Source: 24/7 Wall St. | 17 Oct 2008 | 12:50 pm
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