UK government in borrowing record

The UK borrowed a record amount of money in September, to boost its public finances, official figures show.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 12:06 pm

India's central bank cuts rates

India's central bank unexpectedly cuts short-term lending rates in response to continued pressure from the global financial crisis.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 12:00 pm

Yahoo to outline cost-cutting plans: source

SAN FRANCISCO (Reuters) - Yahoo Inc is expected to outline plans to cut expenses, which would include future job cuts, when it reports its quarterly earnings on Tuesday, a source familiar with the situation said on Sunday.
Source: Reuters: Business News | 20 Oct 2008 | 11:55 am

Top Pre-Market Analyst Upgrades (APC, APA, AMAT, BBY, BP, CVX, CSCO, COP, XOM, KFT, NBL, SYMC, VLO)

These are some of the top analyst pre-market upgrades we are seeing early this Monday morning:

• Anadarko Petroleum (APC) Raised to Outperform at Oppenheimer.
• Apache (APA) Raised to Outperform at Oppenheimer.
• Applied Material (AMAT) Raised to Buy at Goldman Sachs.
• Best Buy (BBY) Raised to Neutral at Goldman Sachs.
• BP plc (BP) Raised to Outperform at Oppenheimer.
• Chevron (CVX) Raised to Outperform at Oppenheimer.
• Cisco Systems (CSCO) Raised to Outperform at Morgan Keegan.
• ConocoPhillips (COP) Raised to Outperform at Oppenheimer.
• Exxon Mobil (XOM) Raised to Outperform at Oppenheimer.
• Kraft (KFT) Raised to Buy at UBS.
• Noble Energy (NBL) Raised to Outperform at Oppenheimer.
• Symantec (SYMC) Raised to Outperform at Oppenheimer.
• Valero (VLO) Raised to Outperform at Oppenheimer.

Jon C. Ogg
October 20, 2008

Source: 24/7 Wall St. | 20 Oct 2008 | 11:55 am

Eaton lowers outlook after 22% profit rise

Eaton Corp. on Monday reported a sharp rise in its third-quarter earnings due to higher sales of its electrical equipment, but it also lowered its full-year outlook due to a slowing global economy.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:53 am

ING investors cheer Dutch government cash

AMSTERDAM/TAIPEI (Reuters) - Investors in financial group ING cheered a 10 billion euro ($13.5 billion) Dutch government cash injection and a disposal on Monday, with shares recovering much of their hefty losses from the previous session.
Source: Reuters: Business News | 20 Oct 2008 | 11:52 am

'Thousands' of Merrill jobs may be cut

Bank of America's takeover of Merrill Lynch is likely to cause thousands of layoffs, according to John Thain, Merrill's chief executive
Source: FT.com - US homepage | 20 Oct 2008 | 11:51 am

Ericsson shares soar as profit, sales surpass forecasts

Shares of Ericsson AB leap after the world’s largest maker of wireless networks posts better-than-expected third-quarter profit, as sales surged and cost cuts started to bear fruit.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:51 am

Halliburton swings to a loss but beats target

Halliburton Co. on Monday said it swung to a $21 million loss in the third quarter on a big debt retirement payment and costs tied to Hurricane Ike and Gustav.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:50 am

Top Pre-Market Analyst Downgrades (CENT, HELE, INTC, LBY, MET, MNST, POZN, PRU)

These are some of the top analyst downgrades we are seeing early this Monday morning:

• Central Garden & Pet (CENT) Cut to Underperform at Jefferies.
• Helen of Troy (HELE) Cut to Hold at Jefferies.
• Intel (INTC) Cut to Neutral at Goldman Sachs.
• Libbey (LBY) Cut to Underperform at Jefferies.
• MetLife (MET) Cut to Neutral at Goldman Sachs.
• Monster Worldwide (MNST) Cut to Hold at Citigroup.
• Pozen (POZN) Cut to Hold at Citigroup, Cut to Underperform at Jefferies.
• Prudential Financial (PRU) Cut to Sell at Goldman Sachs.

Jon C. Ogg
October 20, 2008

Source: 24/7 Wall St. | 20 Oct 2008 | 11:48 am

Stocks headed for a pop

Wall Street looked set to open on a positive note Monday after a turbulent week, with traders keeping an eye on testimony from Federal Reserve chief Ben Bernanke.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 11:45 am

Circuit City weighing shutting stores, job cuts: WSJ

(Reuters) - U.S. electronics retail chain, Circuit City is considering closing at least 150 stores and cutting jobs, the Wall Street Journal said citing people familiar with the company.
Source: Reuters: Business News | 20 Oct 2008 | 11:44 am

Toymakers Mattel, Hasbro both post slowing sales growth

Toy-making giants Mattel and Hasbro each report slowing third-quarter sales growth as deterioration in the worldwide economy dents demand.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:42 am

Yahoo said to mull layoffs

The Internet portal Yahoo Inc. is weighing additional layoffs as it mulls cost-cutting measures, according to a published report Monday.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 11:36 am

Europe Markets: Oil producers pace gains for European shares

European shares rise on Monday, as oil firms advance, ING retakes some of the previous session’s heavy losses and investors welcome earnings from Ericsson.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:32 am

OPEC: 'Substantial' cuts likely

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 11:31 am

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:31 am

Aga suffers as property slump cools spending

Shares in Aga Rangemaster fell almost 25 per cent this morning as the maker of the classic cast-iron cookers reported a 15 per cent drop in orders amid the slowdown in the housing market and the unsteady economic climate.
Source: Latest Business News from Times Online | 20 Oct 2008 | 11:29 am

Merrill CEO sees thousands of job cuts: report (Reuters)

Reuters - Merrill Lynch & Co Inc Chief Executive John Thain said he expects thousands of job cuts after the company is acquired by Bank of America Corp , Bloomberg News reported on Monday.
Source: Yahoo! News: Business | 20 Oct 2008 | 11:28 am

Merrill CEO sees thousands of job cuts: report

NEW YORK (Reuters) - Merrill Lynch & Co Inc Chief Executive John Thain said he expects thousands of job cuts after the company is acquired by Bank of America Corp , Bloomberg News reported on Monday.
Source: Reuters: Business News | 20 Oct 2008 | 11:28 am

China Mobile third-quarter profit climbs 26%

China Mobile, the world's biggest cellular service provider by subscribers, reports a 26% rise in quarterly net income on strong results in its data services business and steady subscriber growth.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 11:25 am

Halliburton posts third-quarter net loss

NEW YORK (Reuters) - Halliburton Co posted a quarterly net loss on Monday, hurt by an acquisition-related charge and costs from the cash settlement of a convertible senior notes premium.
Source: Reuters: Business News | 20 Oct 2008 | 11:22 am

More European banks turn to bailouts, lending eases

LONDON/HONG KONG (Reuters) - European banks lined up on Monday to tap state rescue packages to shore up their finances, part of measures to stem a global crisis that have begun to restore trust between institutions.
Source: Reuters: Business News | 20 Oct 2008 | 11:22 am

Malaysia acts to prevent slowdown

Malaysia unveils a slew of measures to prop up its stock market and attract more foreign investment in expectation of slower growth in 2009.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 11:22 am

Stock futures add to gains as lending rates ease

NEW YORK (Reuters) - Stock index futures extended gains on Monday, helped by signs of further easing of interbank lending rates.
Source: Reuters: Business News | 20 Oct 2008 | 11:14 am

Stock futures add to gains as lending rates ease (Reuters)

Reuters - Stock index futures extended gains on Monday, helped by signs of further easing of interbank lending rates.

Source: Yahoo! News: Business | 20 Oct 2008 | 11:14 am

More European banks turn to bailouts, lending eases (Reuters)

Reuters - European banks lined up on Monday to tap state rescue packages to shore up their finances, part of measures to stem a global crisis that have begun to restore trust between institutions.

Source: Yahoo! News: Business | 20 Oct 2008 | 11:13 am

Bank of America chief optimistic about bailout

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 11:11 am

Global effort thaws credit freeze

With two more countries entering the global fight to stem the world's financial crisis, bonds and lending rates continued to fall Monday, signaling the worldwide effort was working to ease the stranglehold on lending.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 11:11 am

Mattel's profit misses, Hasbro beats

NEW YORK (Reuters) - Top U.S. toy maker Mattel Inc posted a quarterly profit that missed Wall Street estimates, hurt by higher costs, while rival Hasbro Inc's earnings topped...
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 11:05 am

ING sells Taiwan life assurance unit

ING has agreed to sell its Taiwan life assurance business to Fubon Financial for $600m, a deal which will incur a book loss of €427m at the Dutch banking and insurance group
Source: FT.com - US homepage | 20 Oct 2008 | 11:04 am

Orange brand to launch in Uganda

France Telecom will launch its Orange mobile network in Uganda after buying a majority stake in a Ugandan mobile phone firm.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 10:57 am

UK economy 'already in recession'

The UK economy has "deteriorated dramatically" in the past three months, and is already in a recession, top forecasters suggest.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 10:50 am

Joint U.S.-New York inquiry into CDS trading: report

(Reuters) - New York state and federal prosecutors have launched an investigation into the role of credit-default swaps in the U.S. financial crisis, the New York Times reported.
Source: Reuters: Business News | 20 Oct 2008 | 10:46 am

Indications: U.S. stock futures shoot higher to start the week

U.S. stock futures shoot higher as traders grew more confident that government measures to stabilize the financial system will be successful.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 10:46 am

Low On Cash For Chrysler Merger, GM (GM) Can Turn To Fed

There is an arcane rule in the Federal Reserve charter that allows it to provide funding to organizations outside the banking system. It is buried under dust and cob webs somewhere in the basement of the banking agency's headquarters, but the sleuths from GM (GM) have found it.

Word hit the street today that the largest US car company does not have the capital to complete a merger with Chrysler. Apparently the smaller company is close to broke as well, or at least too close for comfort.

According to The Wall Street Journal, the management of the two companies have been hitting up possible lenders. "That pitch touts a combined GM-Chrysler as delivering cost savings of up to $10 billion, an immediate boost in revenue and an increase in cash available to the merged firm," the paper reports.

Unfortunately, the firms do not have the money to pay severance for as many as 50,000 people.To make the deal work, all of those souls need to depart.

It would make sense for the two auto firms to turn to the Fed. There is plenty of money there. The circumstances are extraordinany. An entire pillar of America's industrial base is at risk.

The Fed faces more than one issue, more than one challenge, in taking a decision to put money into the car merger.

Bernanke would need to decide that he would be the agent which would allow 50,000 people to be put out of work. That seems to be an odd role for the federal government during an economic downturn. Congressmen from Michigan might take exception to it.

Another problem is that the car industry might actually be better off with fewer companies. Having three US car firms when they had 80% of the market made economic sense. With their piece of the pie at less than half, that no longer holds true.

The Fed may decide to help the auto industry the way Treasury is helping the banks. It may seem to be the right thing to do at this time. But, banks are not in trouble because of foreign competition. They have come close to failure because of stupidity that reached into the system across borders.

The failures of GM, Ford (F), and Chrysler are uniquely American. The Fed is being asked to solve a free market problem and not a systemic problem. If car companies get the deal so should beer companies up against German ale.

Douglas A. McIntyre

Source: 24/7 Wall St. | 20 Oct 2008 | 10:45 am

Yahoo to outline cost-cutting plans: source (Reuters)

Reuters - Yahoo Inc is expected to outline plans to cut expenses, which would include future job cuts, when it reports its quarterly earnings on Tuesday, a source familiar with the situation said on Sunday.

Source: Yahoo! News: Business | 20 Oct 2008 | 10:38 am

Chinese quarterly GDP growth falls to 9.0%

China has announced new steps to boost the property market and help exporters after third quarter growth fell to 9%, the slowest pace in five years and below forecasts
Source: FT.com - US homepage | 20 Oct 2008 | 10:28 am

Mattel posts higher third-quarter profit

NEW YORK (Reuters) - Top U.S. toy company Mattel Inc posted a slightly higher third-quarter profit on Monday, helped by increased sales of some Fisher-Price and American Girl products.
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 10:27 am

Bank of Japan says economic conditions weak across the nation

The Bank of Japan lowers its assessment of the nation's regional economies, saying all nine regions appear to be weakening. The report by the central bank potentially carries implications for Japanese interest rates.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 10:25 am

Bank Accounting: Moving The Goal Posts

How often do companies get to defy the rules of GAAP? The answer is almost never. Accountants defend it like they would the Holy Grail, if they could find it. GAAP is, to a large extent, an abstract set of rules meant to be applied by CPAs as medical potions are by MDs. But, it is rare that the code is suspended altogether.

Some place along the way to the bank rescue an accountant in The Treasury Department took Mr. Paulson aside and told him that putting $125 billion into bank equity would do severe damage to earnings at the firms. In addition to the preferred shares the government was getting the banks would also issue warrants, a way for taxpayers to particlpate if the bank stocks did very well.

Under GAAP warrants have always been treated as a liability, something owed to be paid later. A real debt. According to The Wall Street Journal, The Securities and Exchange Commission and the Financial Accounting Standards Board are expected to issue guidance telling the banks participating in the program that they can consider the warrants "permanent equity". That is a sweet deal which is beyond the imagination of most CFOs. It is a mulligan, a reset of the pinball machine, a get-out-of-jail-free card.

Unfortunately, the actions is a deep perversion of one of the core principals of accounting. Warrants are not commons shares. They are a future obligaiton which exists based on an election of the warrant holder.

Warrants are issued, at one time or another, by some significant portion of the public companies in the US. It is unlikely that the new rule will changed for them the same way it will be for the nine financial firms the governemnt is aiding with infustions of capital.

Sometime overnight rowdies sneaked into the stadium and moved the goal posts and no one bothered to put them back.

Douglas A. McIntyre

Source: 24/7 Wall St. | 20 Oct 2008 | 10:18 am

Currencies: Yen, dollar slip on revived risk appetite

A bounce higher by Asian and European equities Monday left the Japanese yen and, to a lesser degree, the U.S. dollar under pressure as traders reverse recent moves into safe havens.

Source: MarketWatch.com - Top Stories | 20 Oct 2008 | 10:04 am

As Display Advertising Spreads, Problem Goes Beyond Yahoo! (YHOO)

Almost every man, woman, and child in America knows that Yahoo! (YHOO) is going to have to cut costs. There has been evidence for sometime that internet display advertising, which has been growing at a remarkable rate for over five years, has begin to slow significantly. A deep recession may even move its annual increase to the single digits next year.

Yahoo!'s house is build on the premise that display advertisng will continue to do well. That foundation is no longer an assurance of success.

According to The Wall Street Journal, Yahoo! may lay-off well over 1,000 poor souls. Investors have thought the company's expenses have been bloated for a long time. The cuts may get them in line with the real revenue prospects of the company.

Yahoo! is probably not going to be sold to Microsoft (MSFT). It may not even merge with AOL. That means that the board, sitting in with its new member Carl Ichan, has to assume that the portal company is on its own. With its shares down by more than half from their 52-week high someone has to pay for the firm's bungled plans. In this case, it will be the rank and file.

What is bad for Yahoo! is almost certainly bad for every major media conglomerate with has significant exposure to the internet for its revenue growth. Analysts would argue that Time Warner (TWX), News Corp (NWS, and Viacom (VIA) are the worst off of the bunch. AOL, MySpace, and the online version of MTV could be financially scuttled by a sharp fall-off in online display advertising.

Almost all of the projections about display ad growth are now proving to be wrong. Some of that is because marketers are turning to search advertising from Google (GOOG) as a more effective way to get customers. But, the other reason was within the control of the media companies themselves. They assumed that a new business, in this case the internet, worked so well that it would have extraordinary growth stretching beyond the horizon. Since that sort of projection rarely turns out to be true, they should not have assumed it at all.

Douglas A. McIntyre

Source: 24/7 Wall St. | 20 Oct 2008 | 10:01 am

J.D. Power and Associates Reports: Leveraging Loan Officer Relationships is Key to Providing High Levels of Customer Satisfaction

SunTrust Mortgage Ranks Highest in Primary Mortgage Origination Customer Satisfaction WESTLAKE VILLAGE, Calif., Oct. 20 /PRNewswire/ -- In the current economic ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 10:00 am

Boss exploration - Five new zones of copper-gold mineralization located

CALGARY, Oct. 20 /PRNewswire-FirstCall/ - Boxxer Gold Corp (TSXV - "BXX") is pleased to announce that it has located five new zones of copper mineralization on its 100%
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 10:00 am

How to jumpstart a new career

Dear Annie: All of my short professional life so far has been in an industry that I've realized is not for me. I'm currently the only IT guy in a small company, a job I took with the assurance that I would gradually be moved into more of a management position, but that has yet to happen. I'm sick of computers, but all my experience (including part-time jobs in college) is confined to this area. What is the best way to redo my resume and approach interviews in a completely different industry? I know of a number of other people my age (mid-to-late 20s) who are in the same situation. - Feeling Stuck

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 9:50 am

Circuit City (CC): A Chapter 11 Or Just Massive Cuts?

The Wall Street Journal reports that Circuit City (CC) is finally addressing just how desperate its situation is. The company is reportedly considering a plan to close 150 stores and slash jobs in an effort to save the company. But the company has also hired bankruptcy attorneys Skadden, Arps, Slate, Meagher & Flom LLP and other consultants as it mulls a possible bankruptcy filing and plans for the possibility of debtor in possession financing

It may be too late for Circuit City because of managerial bungling. Back in July, the company began bizarre expansion plans even as it bled red ink and suffered from poor same store sales.

The Journal adds that "Circuit City management, investors and advisers are trying to avoid a bankruptcy filing before the holiday season, people familiar with the matter said, fearing customers might doubt the ability of a retailer involved in bankruptcy proceedings to provide warranties on products like laptop computers and flat-screen TVs."

But here's the problem: if Circuit City is trying desperately to avoid chapter 11 until after the holiday season, why on earth would anyone ship to them? Being a creditor in a bankruptcy filing isn't exactly fun. If electronics manufacturers lose faith in Circuit City, as they probably should, the company is doomed. On the other hand, the weak economy and expected soft holiday season could leave a lot of suppliers desperate to move inventory, even at the possible expense of extended credit terms and the risk of future receivables writedowns.

Given how much trouble so many over-leveraged retailers are in, Circuit City is not alone as a company that could have trouble stocking its shelves with new merchandise. Golfsmith (GOLF) will be in trouble if the golf market remains weak, as evidenced by its declining stock price and cash burn. Pier 1 Imports (PIR) could also have a lot in common with Circuit City and that's never a good thing.

Zac Bissonnette

Source: 24/7 Wall St. | 20 Oct 2008 | 9:43 am

China: When 9% GDP Growth Is A Recession

Source: 24/7 Wall St. | 20 Oct 2008 | 9:37 am

Macau sees gambling revenue drop

The credit crisis and slowing economies lead to a 10% drop in Macau's gaming revenues, according to a Macau gaming body.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 9:35 am

Government measures boost stocks

Stock markets rise in Europe and Asia on new government measures to support the financial system.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 9:31 am

Report: California saves money by saving energy

California has saved about $56 billion in electricity costs and created 1.5 million jobs over 35 years by using energy more efficiently than other states, according to a new study. The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 9:25 am

Small town, big changes

Want more domestic energy? Take a look at how big oil and gas companies are transforming lives in a small cow-town.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 9:21 am

Robert Peston

Why aren't our bills falling the same way oil prices are?
Source: BBC News | Business | World Edition | 20 Oct 2008 | 9:16 am

Germany approves bailout terms, sets salary cap

The German Cabinet on Monday approved the terms that banks will have to accept in order to benefit from its euro480 billion ($645 billion) bailout plan _ including a salary cap of...
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 9:15 am

U.S. stock index futures rise; eyes on earnings

LONDON (Reuters) - U.S. stock futures pointed to a higher opening on Wall Street on Monday, tracking a rally in Asia and Europe as investors applauded additional measures by governments to...
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 9:15 am

Germany sets bank bail-out rules

Germany outlines the conditions that banks will have to meet if they want to take part in the 480bn-euro bail-out plan.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 9:12 am

Public borrowing hits record high

The Treasury was forced to borrow record amounts in the first half of the present financial year as its tax revenues continued to fall far short of Alistair Darling’s plans, plunging the Chancellor’s finances deep into the red.
Source: Latest Business News from Times Online | 20 Oct 2008 | 9:02 am

Cooker maker Aga warns on profits

Shares in Aga Rangemaster, the firm behind the iconic cookers, sink 22% after it says sliding sales are set to hit profits.
Source: BBC News | Business | World Edition | 20 Oct 2008 | 9:01 am

World oil prices higher amid talks of OPEC production cuts

World oil prices rose in Asian trade Monday amid growing signs that OPEC will announce production cuts at a special meeting in Vienna this week, dealers said. New York's main
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 9:01 am

UPDATE 4-Ericsson posts strong third quarter, shares jump

* Shares extend gains, up 19 percent, on above-forecast Q3
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 8:57 am

Novartis reports profit surge

Swiss pharmaceutial giant Novartis reported 19-percent growth in nine-month profits on Monday, saying that it would end the year with record sales and earnings despite volatile economic...
Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Oct 2008 | 8:55 am

World stocks bounce on growing credit confidence (Reuters)

Reuters - World stocks put in solid gains on Monday as investors took comfort in global efforts to prop up the banking system, allowing for some bargain hunting.

Source: Yahoo! News: Business | 20 Oct 2008 | 8:46 am

Barclays: Wall Street's new gambler

Robert Diamond looks wiped. It's just after noon in London, and the president of Barclays - the newest power broker on Wall Street - is trying to snatch a few moments of calm. He ignores the gigantic TV suspended above his desk with its scrolling news of financial doom. European markets have continued to fall, despite an $87 billion British government financial bailout and a concerted round of interest rate cuts by central banks.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 8:26 am

Sweden launches financial stability package

Sweden has become the latest European country to take action to stabilise its financial system with the creation of a $205bn programme to boost liquidity in the system and take direct stakes in its banks if needed
Source: FT.com - US homepage | 20 Oct 2008 | 8:17 am

Markets in Europe and Asia Move Higher

Stocks rose in Europe and Asia, after a new round of government actions to backstop financial institutions and as investors watched for more signs that credit markets are loosening up.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 8:13 am

Supermarket petrol war forces prices under 98p

Tesco became the third supermarket today to cut the price of unleaded fuel by 2p to 97.9p a litre, following Asda and Wm Morrison.
Source: Latest Business News from Times Online | 20 Oct 2008 | 8:13 am

Mike Ashley gives JJB Sports a £3m cash boost

JJB Sports, the troubled sports chain, this morning secured a £3.4 million cash injection by issuing shares worth 5 per cent of the company to Mike Ashley’s Sports Direct.
Source: Latest Business News from Times Online | 20 Oct 2008 | 8:10 am

Media Digest 10/20/2008

Source: 24/7 Wall St. | 20 Oct 2008 | 7:49 am

Ford, Chrysler offer 2009 model discounts: report (Reuters)

Reuters - Car makers Ford Motor Co and Chrysler LLC, are offering discounts on their newest models to boost sales of their North-American pickup trucks, the Financial Times reported.

Source: Yahoo! News: Business | 20 Oct 2008 | 7:41 am

Ford, Chrysler offer 2009 model discounts: report

(Reuters) - Car makers Ford Motor Co and Chrysler LLC, are offering discounts on their newest models to boost sales of their North-American pickup trucks, the Financial Times reported.
Source: Reuters: Business News | 20 Oct 2008 | 7:41 am

Caisse d’Epargne losses spark Lagarde call for special audit of French banks

Christine Lagarde, France’s Finance Minister, today called for all the country’s banks to undergo a "special audit" following the Caisse d’Epargne disclosed a €600 million trading loss, prompting the resignation of its chairman, chief executive and finance director.
Source: Latest Business News from Times Online | 20 Oct 2008 | 7:39 am

Exelon offers to buy NRG for $6.2 billion in stock

PHILADELPHIA (Reuters) - Exelon Corp , the largest nuclear power operator in the United States, made an unsolicited offer to acquire NRG Energy Inc for $6.2 billion in stock, in a move to expand geographically and boost earnings and cash flow.
Source: Reuters: Business News | 20 Oct 2008 | 7:38 am

Bush to host global economic summit

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 7:35 am

Exelon bids $6.2 billion for NRG Energy

Source: Business and financial news - CNNMoney.com | 20 Oct 2008 | 7:30 am

Asia Markets And Europe Open 10/20/2008

Markets in Asia were sharply higher.

The Nikkei rose 3.6% to 9,006.

The Hang Seng was up 5.7% to 15,385.

The Shanghai Composite was up 2.3% to 1,974.

In Europe, the FTSE opened up 1.9% to 4,137. The DAX was higher by 3.1% to 4,137 and the CAC 40 moved up 3% to 3,491.

Data from Reuters.

Douglas A. McIntyre

Source: 24/7 Wall St. | 20 Oct 2008 | 7:15 am

Australian Stocks: Market climbs almost four per cent

The Australian share market shunned a weaker Wall Street to close almost four per cent higher on stronger resource and banking stocks. At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 171.5 points, or 4.32 per cent,...
Source: New Zealand Herald - Business | 20 Oct 2008 | 7:10 am

Majoring in video games

Colleges retool their curricula to accommodate students aspiring to enter the field.

Second of three parts

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

U.S. seeks ways to get banks to lend, not hoard, new capital

The government has limited legal authority to require financial institutions to do anything specific with the $250 billion it is handing out. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

Businesses can take action to ride out tough times

The sooner small-business owners deal with the souring economy the better, turnaround experts say.

If you owe money to Tom Anderson's employee-recruiting company, don't expect to take your time paying.

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

Reforms on tap at workers' comp insurer State Fund

The scandal-plagued State Fund will get new oversight and must heed laws requiring openness. Next month, a little-known...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

Reforms on tap at workers' comp insurer State Fund

The scandal-plagued State Fund will get new oversight and must heed laws requiring openness.

Next month, a little-known state agency that doubles as a $20-billion insurance company will hold its first public board of directors meeting in 94 years.

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

U.S. seeks ways to get banks to lend, not hoard, new capital

The government has limited legal authority to require financial institutions to do anything specific with the $250 billion it is handing out.

Treasury Secretary Henry M. Paulson tried to leave no doubts last week about how he expected America's banks to use the $250 billion the government is handing out as capital.

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

Consumers now key to high tech's sales

More companies than before rely on home users for the lion's share of revenue. But consumer purchasing is looking vulnerable.

The high-tech industry's near-term health depends on how badly you need that iPod or flat-panel television.

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

Students broadcast interest in TV, radio work

The Center for Education in TV and Radio trains people for behind-the-scenes jobs.

In a small classroom inside an industrial park in Torrance, veteran TV engineer Jaime Hernandez is dispensing some practical advice to his eager students.

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

Microsoft strategist Craig Mundie looks to future

Microsoft's chief research officer says the tech sector may benefit from the economic downturn as companies turn to money-saving technology.

A global recession may be looming, but Craig Mundie sees a silver lining in corporate retrenchment.

Source: L.A. Times - Business | 20 Oct 2008 | 7:00 am

Students broadcast interest in TV, radio work

The Center for Education in TV and Radio trains people for behind-the-scenes jobs. In a small classroom inside...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

Businesses can take action to ride out tough times

The sooner small-business owners deal with the souring economy the better, turnaround experts say. If you owe...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

Majoring in video games

Colleges retool their curricula to accommodate students aspiring to enter the field. Second of three parts
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

Consumers now key to high tech's sales

More companies than before rely on home users for the lion's share of revenue. But consumer purchasing is looking vulnerable. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

Microsoft strategist Craig Mundie looks to future

Microsoft's chief research officer says the tech sector may benefit from the economic downturn as companies turn to money-saving technology. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 7:00 am

China's growth rate hits a 5-year low

The dip to 9% ends a 10-quarter streak of double-digit expansion by the world's fourth largest economy, a powerful engine of global trade.

SHANGHAI -- China's powerful economic machine continued to lose steam in the third quarter, as the growth rate fell to its lowest level in more than five years, the government reported today.

Source: L.A. Times - Business | 20 Oct 2008 | 6:20 am

China's growth rate hits a 5-year low

The dip to 9% ends a 10-quarter streak of double-digit expansion by the world's fourth largest economy, a powerful engine of global trade. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 6:20 am

Deauville Journal: For Women Who Lead, a Forum of Their Own

The Womens Forum for the Economy and Society included 1,200 women and offered three days of lectures, panels and brainstorming on issues of the moment.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 20 Oct 2008 | 5:41 am

NZ stocks: Market rises amid mixed offshore signals

Shares posted healthy gains today ahead of an expected large interest rate cut by the Reserve Bank of New Zealand this week. The benchmark NZSX-50 index closed up 81.155 points, or 2.889 per cent, at 2889.92. The rise came after...
Source: New Zealand Herald - Business | 20 Oct 2008 | 5:37 am

Currency: Dollar lower at start of big week

The New Zealand dollar drifted lower today at the start of a week expected to confirm the highest inflation rate in 18 years and a hefty cut in official interest rates. By 5pm the NZ dollar was at US61.20c, down from US61.55c at...
Source: New Zealand Herald - Business | 20 Oct 2008 | 5:26 am

Positive day for NZ share market

Monday has proven to be a good day for the New Zealand stock exchange, with the market staying consistently in positive territory today, following another up day on Friday. The benchmark NZX-50 index is currently up 2.1 per cent...
Source: New Zealand Herald - Business | 20 Oct 2008 | 4:31 am

Bollard looks set to slash cash rate

Reserve Bank governor Alan Bollard is expected to cut the official cash rate by an unprecedented full percentage point on Thursday, as he seeks to moderate the flow-on effects of carnage in international financial markets. The...
Source: New Zealand Herald - Business | 20 Oct 2008 | 4:00 am

China's economic growth slips into single digits

China’s economic growth slowed in the third quarter of the year, slipping into single digits for the first time in four years, as the impact of an international slowdown seeped into the world’s fastest-expanding major economy.
Source: Latest Business News from Times Online | 20 Oct 2008 | 3:47 am

SAG seeks federal mediator, holds off strike authorization vote

Source: L.A. Times - Business | 20 Oct 2008 | 3:34 am

World slump clips China's growth

BEIJING - China's economic growth slowed to 9.9 per cent in the first three quarters of 2008 as the world's financial woes started to have an impact at home, the government says. In the third quarter, China's economy grew by 9.0...
Source: New Zealand Herald - Business | 20 Oct 2008 | 3:30 am

Kiwi business getting slower at paying their debts

New Zealand businesses are steadily getting slower and slower at paying their bills. Debt-paying behaviours appear to be impacted by the recessionary climate and continued fallout from the credit crisis, with payment terms rising...
Source: New Zealand Herald - Business | 20 Oct 2008 | 2:00 am

DeCode-ing Biotech's Future

Blame it on Iceland’s spectacular crash to virtual insolvency. Blame it on the flameout in markets and banks. Or blame it on a biotech industry that more than other high-tech fields depends on the very-long-term largesse of investors who are now running for the hills.

Whomever one impugns, the facts are rolling in hard for one high-tech victim of the new world economic order: Reykjavik-based deCode Genetics.

The Nasdaq Stock Market has warned the company that it must raise its market cap over the $50 million minimum by October 30 or its stock will be delisted. The stock closed at 25 cents a share on Thursday, a 34 percent drop from Wednesday, which pulled the company's market cap below $25 million.

This comes against a backdrop of biotech markets that are not only plummeting, but may be facing particularly hard times as investors pull back from an industry that even in bullish times requires massive amounts of capital and years of R&D before revenues come in.

The coming months and possibly years could be tough even for biotech companies such as deCode that are on the cutting edge of innovative science, but can't raise money and have no access to credit.

Some may disappear, others will be snapped up by Big Pharma companies sitting on piles of cash earned from blockbuster drugs. Some large drug companies already are experiencing an early Christmas as they buy up suddenly undervalued biotech's large and small—the latest being Eli Lilly & Co.'s offer to buy ImClone Systems.

DeCode C.E.O. Kari Stefansson said he is working with the Stanford Group Company to develop a strategy for selling non-core assets and to attract strategic partners.

"We are in the process of creating a smaller, leaner deCode that will devote its efforts and resources to one line of business," Stefansson said in a company statement. He added that the company is "engaged in discussions with potential partners and purchasers for various programs and business units."

In a recent article in Nature News, Stefansson said deCode's financial crunch was caused by poor investments in auction rate securities by the U.S. banks managing its money. "We have been seriously influenced by the American banking crisis and not the Icelandic," he said.

Co-founded 14 years ago by the Stefansson, then a Harvard neurologist, deCode is best known for hunting gene markers for common diseases such as diabetes and cancer, and for deCodeme, a direct-to-consumer DNA-testing website. (The company and its competitors was the subject of a Portfolio.com series "You 2.0.")

The company also has launched an aggressive medical diagnostics business that utilizes its genomics discoveries in proprietary tests for diseases ranging from stroke and glaucoma to cancers of the breast and prostate. It recently reaped headlines for discovering genetic markers for schizophrenia and skin cancer.

It is also a drug company with two compounds being tested in human trials, and recently filed an application with the Food and Drug Administration to begin human testing on a third drug, to treat Alzheimer's disease.

But under the charismatic and mercurial Stefansson. deCode has sometimes struggled as a business. After the 2001 stock market crash, when it was clear its genomics tests and business would take longer than expected to materialize, he reinvented deCode as a drug development company.

In 2006, a promising deCode heart drug failed in late stage clinical trials, which launched the current slide in the company's stock price. Until the recent global collapse, however, Stefansson has kept the stock from plunging too far.

DeCode plans to announce changes in the company in a November 6 webcast.

"But we will survive," Stefansson told Nature News. "We are working on refinancing and restructuring the company. And we are fairly optimistic today that we will succeed."Related Links
You 2.0: I'm Doomed. Or Not.
Do Some Men Have a Commitment-Phobia Gene?
DNA Police


Source: Portfolio.com: Top 5 | 20 Oct 2008 | 2:00 am

Sealegs says slowdown means it needs more capital

Amphibious boat maker Sealegs is feeling the effects of the deteriorating global economy and will need to raise more capital. The company said it has experienced a sudden and significant reduction in the rate of new orders. It...
Source: New Zealand Herald - Business | 20 Oct 2008 | 1:00 am

Sharp fall for Steel & Tube after takeover ditched

Steel & Tube Ltd's share price fell 22 per cent to $2.80 after Australian company OneSteel Ltd said on Friday it was pulling its $4 a share bid for the company. Steel & Tube took the unusual step of advising the market...
Source: New Zealand Herald - Business | 20 Oct 2008 | 12:00 am

Sony puts its future in the hands of Sackboy

Sony PlayStation, the video games console, hopes to reverse its flagging popularity with a little-known British creation: a rag doll called Sackboy.
Source: Latest Business News from Times Online | 19 Oct 2008 | 11:08 pm

Prudential considers sovereign wealth to fund bid for AIG

Prudential is considering handing a 20 per cent stake to a sovereign wealth fund to bankroll a bid for part of AIG, its stricken American rival.
Source: Latest Business News from Times Online | 19 Oct 2008 | 11:00 pm

South Korea’s $130bn guarantee may not be enough to stave off a crisis called Kiko$

With its currency ravaged, its stocks mauled in a flight of foreign money and red flags raised over the stability of its largest banks, South Korea has unveiled a $130 billion ($£75 billion) effort to win back the confidence of markets.
Source: Latest Business News from Times Online | 19 Oct 2008 | 11:00 pm

Lord Mandelson admits that Britain's economy is going into reverse

The British economy is going to shrink and many small and medium-sized businesses could go bust as it does so, Lord Mandelson, the newly appointed Business Secretary, admitted yesterday.
Source: Latest Business News from Times Online | 19 Oct 2008 | 11:00 pm

Financial crisis hits Aussie sports leagues

SYDNEY - Australia's rugby league champions and three Australian Rules football clubs are without sponsors for next season as the worldwide economic downturn affects the country's top sports leagues. The Manly Sea Eagles, which...
Source: New Zealand Herald - Business | 19 Oct 2008 | 11:00 pm

Job losses spread in Silicon Valley

A wave of job losses has started to spread across California's Silicon Valley as the optimism of technology start-ups turns to pessimism amid the market rout
Source: FT.com - US homepage | 19 Oct 2008 | 10:29 pm

P&G web move is challenge to retailers

Procter & Gamble is testing its ability to use the internet to sell its toothpaste, household cleaners and nappies directly to US households, in a potential long-term strategic challenge to its retail partners
Source: FT.com - US homepage | 19 Oct 2008 | 9:34 pm

Muni bonds regain retail appeal

During the credit boom the retail investors that used to dominate the municipal bond market were squeezed out by institutional investors, who used leverage to boost returns. However, lured by attractive yields, individual buyers have returned to the muni market
Source: FT.com - US homepage | 19 Oct 2008 | 9:33 pm

Deripaska races to secure $2bn financing

Russia's richest man – on paper – has until the end of October to secure more than $2bn in financing to repay part of a $4.5bn loan to western banks
Source: FT.com - US homepage | 19 Oct 2008 | 9:31 pm

As Car Industry Fails, Detroit Class Warfare Loses It Power

Founded during The Great Depression, the UAW is now more than seventy years old. Henry Ford once supposedly said that the union would organize Ford (F) workers over his dead body. Ford is gone now. The company he founded may not be an independent enterprise much longer. Other players in the car company/union wars are also long gone. Walter Reuther, who became the head of the UAW in 1946 died in 1970. Jimmy Hoffa, the longtime head of the Teamsters, disappeared from the parking lot of a Detroit-area restaurant in 1975. Both were willing to press the case of their workers, even to the point of violence.

The war between the unions and The Big Three has lasted since Ford made his comment. There was some rapprochement when the Arab Oil Embargo crippled the industry in the early 1970s. But, unemployment in southeastern Michigan moved up to nearly 15% at the depth of the recessions in the mid-1970s and early 1980s. The union was anxious to claw back what it could for its members once the industry began to recover

Through much of the period from WWII into the 1960s areas close to downtown Detroit where almost entirely populated by auto workers whose hourly wages and benefits made them middle class by most standards. The labor force in and around Detroit become so large that ethnic communities of people working at The Big Three developed in places like Hamtramck, where the population was almost entirely Polish. Detroit ended up with several “cities within the city” which became large cultural and ethnic towns on their own. By 1950, within the cities limits there were nearly two million people. Including the suburbs and satellite cities like Pontiac and Flint that number was well over five million.

The tension that created a modestly comfortable living for hundreds of thousands of people grew from the prosperity of an industry which had a US market share of over 90% forty years ago. Management for the large car companies fought the unions to drive greater profits for shareholders and tremendous wealth for the top 1% of their executives. Organized labor pulled as hard as it could for benefits covering both current workers and those who had retired. Between occasionally savage strikes, the system worked unusually well. Almost every year, all the participants in the system were better off than they had been the year before. But, neither side trusted the other. Management believed that workers did too well. Union members drove by the mansions of the executives and thought company profits were being wasted on fools. Each group was kept at bay by a desire to prevent strikes which could last for months and cripple the financial prosperity of everyone in the system.

The earliest permanent disruption of the balance between labor and the auto companies began after the 1970s as VW and some of the Japanese companies used oil prices to get a foothold in the US market. Despite the tremendous financial success of the auto firms during most of the 1990s and 2000 to 2004, Japanese brands picked up a larger piece of the vehicles sold in the American market. GM’s (GM) profits peaked in 1999 and 2000 at over nearly $17 billion each year.

One of the effects of rising sales for firms like Toyota (TM) is the strikes against US companies tended to do greater and greater damage as consumers could buy good cars from a pool beyond those made by The Big Three. Labor unrest actually had the potential of pushing customer out of the circle of “buying American” if the strikes were long enough to significantly vehicle cut supply.

The American car companies have been overrun by two savage events, both of which largely happened after their latest contracts with the UAW in 2007. The first was the sharp rise in gasoline costs which, coupled with a collapse in the housing market, undercut car sales for The Big Three to a large extent because of their dependence on pick-ups and SUVs . The problem of fuel-efficiency threw huge numbers of sales to Japanese manufacturers who tended to build smaller cars. Just as gas prices began to come down, the credit crisis made getting auto loans much more difficult

The last round of negotiations between the car companies and UAW were tense because auto executives wanted payroll cuts to offset rising employee benefit costs, especially those for retired workers. The car companies were prepared to put tens of billions of dollars into accounts run by the unions to pay future labor benefits. The union agreed to sacrifice jobs. It was an admission on the part of the UAW that its leverage was limited by the damage the US auto industry had sustained from 2005 on.

The UAW made a bad deal. But, it would be hard to imagine how iy could have made a better one. Fuel costs and a recession turned both labor and management into losers. The fury between the two sides, which even showed itself in last year’s negotiations as the UAW threatened several strikes, has lost all of its power. The union will be lucky to get what the car companies owe it for its new benefits fund.

The years of tension between labor and management in Detroit may be permanently over. Both realize that the American car industry may not survive. The last battle between the two parties may be about how many jobs are lost if GM and Chrysler merge. The leverage the workers have is modest. If Chrysler fails, the UAW will lose more than they would as the result of a merger. With thousands of white collar staff also being fired, the union has lost whatever moral high ground it had

With the future of the entire US car industry in the balance, there is hardly anything left to get heated about. What is left now is that the dead get to bury the dead.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Oct 2008 | 9:31 pm

US faces worst recession in 26 years

Senior officials at the Treasury and Federal Reserve are confident the rescue plan for banks will prevent a system meltdown, but they know that a sharp downturn is ahead
Source: FT.com - US homepage | 19 Oct 2008 | 9:23 pm

Powell backs Obama for president

Colin Powell, the former Republican US secretary of state, endorsed Barack Obama as it emerged that the Democratic presidential candidate raised an unprecedented $150m for his campaign last month
Source: FT.com - US homepage | 19 Oct 2008 | 7:01 pm