JPMorgan chief receives death threat

Jamie Dimon, the chief executive of JPMorgan Chase, and dozens of his executives have received death threats, all thought to be from the same person, accusing the bank of stealing Washington Mutual.
Source: Latest Business News from Times Online | 24 Oct 2008 | 10:08 pm

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 | 24 Oct 2008 | 12:31 pm

Brutal start seen for Wall Street

A wave of anxiety about a global recession was set to reach the United States at Friday's Wall Street open, with limits imposed on futures trading after they fell more than 6%.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 12:23 pm

Oil falls nearly $5 as OPEC cut fails to halt slide

LONDON (Reuters) - Oil slid nearly $5 a barrel on Friday as gloom about a global economic downturn that is sapping fuel demand took the steam out of an OPEC agreement to cut output.

Source: Reuters: Business News | 24 Oct 2008 | 12:23 pm

Stock futures frozen after steep plunge

NEW YORK (Reuters) - Stock index futures tumbled so sharply on Friday that they had to be frozen at several points as global markets tumbled on signs the global economy is in the throes of recession.

Source: Reuters: Business News | 24 Oct 2008 | 12:22 pm

Stock futures frozen after steep plunge (Reuters)

Reuters - Stock index futures tumbled so sharply on Friday that they had to be frozen at several points as global markets tumbled on signs the global economy is in the throes of recession.

Source: Yahoo! News: Business | 24 Oct 2008 | 12:22 pm

Dollar surges vs. euro, tumbles vs. yen

Recession fears and expectations of sharp interest rate cuts by central banks in Europe sent the dollar soaring against euro and the pound Friday, but the U.S. currency tumbled against the yen.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 12:22 pm

Indications: U.S. stock futures fall the most that they're allowed

U.S. stock futures pointed to another monumental beating on Friday – with leading contracts falling as much as rules allow -- as a plunge in Asia reignited concerns about the health of the global economy.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 12:19 pm

Will the Fed go below 1%?

The Federal Reserve is widely expected to cut interest rates again next week. But could the Fed soon go where it has never gone before and bring them below 1%?

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 12:18 pm

Investors pulling less from mutual funds

As the world financial markets continue to thrash wildly, the amount of money pulled from stock mutual funds in the past week was on the decline, according to a report released Thursday - an indication that individual investors were getting a little less pessimistic.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 12:16 pm

ITT Corp.'s quarterly net off 6%; 2008 forecast trimmed

ITT Corp. cuts 2008 profit outlook to pay for accelerated restructuring plans in the face of the economic slowdown, as the industrial conglomerate’s third-quarter earnings fall 6%.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 12:08 pm

Top Pre-Market Analyst Upgrades (ACC, CLS, CHS, EL, JBLU, SLGN, TRMB)

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

• American Campus (ACC) Raised to Outperform at Baird.
• Celestica (CLS) Raised to Outperform at CIBC.
• Chico’s FAS (CHS) Raised to Market Weight at Thomas Weisel.
• Estee Lauder (EL) Raised to Neutral from Sell at Piper Jaffray.
• Jetblue (JBLU) Raised to Overweight at JPMorgan.
• Silgan Holdings (SLGN) Raised to Buy at Deutsche Bank.
• Trimble Navigation (TRMB) Raised to Outperform at Oppenheimer.

Jon C. Ogg
October 24, 2008

Source: 24/7 Wall St. | 24 Oct 2008 | 12:05 pm

Ingersoll profit in line with lowered estimates

NEW YORK (Reuters) - Diversified manufacturer Ingersoll-Rand Co Ltd reported a quarterly profit in line with recently lowered forecasts on Friday.

Source: Reuters: Business News | 24 Oct 2008 | 12:04 pm

Top Pre-Market Analyst Downgrades (ATI, BIDU, DISCA, FHN, JNS, NOV, PTEC, RSH, SIGM, VRGY)

These are some of the top pre-market analyst downgrades we are seeing this Friday-crash morning:

• Allegheny Tech (ATI) Cut to Hold at Deutsche Bank.
• Baidu.com (BIDU) Target Cut to $260 from $350 at Goldman Sachs.
• Discovery Communications (DISCA) Cut to Underweight at JPMorgan.
• First Horizon National (FHN) Cut to Neutral at Goldman Sachs.
• Janus Capital (JNS) Cut to Underperform at FBR.
• National Oilwell Varco (NOV) Cut to Neutral at JPMorgan.
• Phoenix Tech (PTEC) Cut to Buy from Strong Buy at Needham.
• Radio Shack (RSH) Cut to Neutral at Goldman Sachs.
• Sigma Designs (SIGM) Cut to Hold at Deutsche Bank.
• Verigy (VRGY) Cut to Underperform at Oppenheimer.

Jon C. Ogg
October 24, 2008

Source: 24/7 Wall St. | 24 Oct 2008 | 12:03 pm

OPEC cuts production, oil sinks

Oil prices fell to their lowest point since May 2007 Friday after the world's largest oil cartel slashed production targets by a smaller-than-expected amount.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 12:03 pm

Opec slashes production quotas

The oil cartel decided to cut its production quota by a 1.5m barrels a day, substantially more than Saudi Arabia had sought, but oil prices tumbled as traders feared the move would not be enough to offset the global economic slowdown
Source: FT.com - US homepage | 24 Oct 2008 | 12:02 pm

Greenhill & Co. Reports Third Quarter Net Loss Per Share of $0.42

- Reversal of previously recorded unrealized merchant banking gains due to mark-to-market adjustment, leading to a quarterly loss - Year-to-date earnings per share...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 12:00 pm

First Financial Holdings, Inc. Announces Fourth Quarter and Fiscal 2008 Earnings and Quarterly Dividend Payment

CHARLESTON, S.C., Oct. 24 /PRNewswire-FirstCall/ -- First Financial Holdings, Inc. ("Company") (Nasdaq: FFCH) today reported net income for the fourth quarter...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 12:00 pm

Air T, Inc. to Report Second Quarter Results on October 31

MAIDEN, N.C., Oct. 24 /PRNewswire-FirstCall/ -- Air T, Inc. (Nasdaq: AIRT) announced that it will release its results for the period ended September 30, 2008 on Friday,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 12:00 pm

A. H. Belo Corporation Amends Credit Agreement

DALLAS, Oct. 24 /PRNewswire-FirstCall/ -- A. H. Belo Corporation (NYSE: AHC) said today that its bank group has approved an amendment and waiver to its credit facility. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 12:00 pm

Jackson Hewitt Chief Operating Officer to Leave Company

PARSIPPANY, N.J., Oct. 24 /PRNewswire-FirstCall/ -- Jackson Hewitt Tax Service Inc. ("Jackson Hewitt") (NYSE: JTX) announced today that Mark Heimbouch will be resigning
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 12:00 pm

Look Out Below

Investors around the world are running scared again today, dumping assets on an enormous scale.

U.S. stock-index-future contracts fell by more than their 5 percent limit hours before stock markets opened in the United States. Markets in Asia and Europe tumbled.

The sell-off has been triggered by one big company after another reporting weak earnings or expecting a slowdown ahead. Much of the world is sliding into a recession. Yet all that was known before today. What has changed in the last 12 hours is a brake-squealing U-turn in the mood of investors. Those who saw a tiny glimmer of hope have fled, and the market is now embracing a wholesale abandonment of equities: It's what Wall Street professionals call a "capitulation." Sell. Everything. Now.

Hedge funds, which have been hammered by the financial crisis, have been seen furiously unloading stocks.

"The panic levels are now quite unseen," Christian Gattiker at Bank Julius Baer told Bloomberg News.

Today may be the day for nuclear-winter bears like economist Nouriel Roubini, a.k.a. "Dr Doom." Roubini writes today:

"We have now reached a point where fundamentals and long-term valuation considerations do not matter any more for financial markets. There is a free fall as most investors are rapidly deleveraging, and we are on the verge of a capitulation collapse. What matters now is only flows—rather than stocks and fundamentals—and flows are unidirectional as everyone is selling and no one is buying as trying to buy equities is like catching a falling knife. There are no buyers in these dysfunctional markets, only sellers. And panic is the ugly state of this destabilizing game."

The only positive here is that the bloodletting, if it continues in the U.S. trading day, could be a good thing. Flush out the investors who cannot stay in at any price. Speed up this slow-motion crash and get it over with.

The global wave of selling today began in Tokyo, where Japanese stocks fell nearly 10 percent to their lowest levels in more than five years. A profit warning by Sony on Thursday weighed on that market. Hong Kong fell 8.3 percent, while Seoul tumbled 10.6 percent.

European markets are sharply lower. London stocks fell 9 percent after data showed that the British economy contracted in the third quarter.

Frankfurt was also down 9 percent; Paris slid 8 percent. Shares of banks and automakers were among the weakest.

Related Links
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Source: Portfolio.com: Top 5 | 24 Oct 2008 | 12:00 pm

Oil falls despite production cuts

World oil prices fall further, undermining Opec's attempts to steady prices by cutting output by 1.5 million barrels a day.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 11:59 am

Recession fear as economy shrinks

The economy shrank for the first time in 16 years between July and September, confirming the UK is on the brink of recession.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 11:59 am

UST Reports Third Quarter 2008 Results; Reaffirms Earnings Guidance for the Year

- Net sales increased 1% vs. year ago to $484.6 million - Diluted EPS was stable vs. year ago at $.84 - Adjusted diluted EPS increased 4.6% vs. year ago to $.91 (see table)
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 11:58 am

Europe, Asia summit opens with calls to unite

European and Asian leaders pledged united and bold action in combating the unprecedented challenges posed by the global economic crisis, as a major regional summit got under way here...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 11:55 am

Europe Markets: European markets tumble as deep recession looms

European shares tumble on Friday following heavy losses in Asia, with the auto sector slumping after profit warnings from Renault and Peugeot-Citroen as well as weak results from Swedish truck maker Volvo.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:54 am

Redstone finished selling

After his own personal mini-meltdown caused him to sell some of his shareholdings in CBS and Viacom, Sumner Redstone said this week that the situation is under control and that he won't be selling any more.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 11:53 am

British, euro-zone recessions under way, economists say

It’s not yet official, but economists say Friday's data on the British and euro-zone economies show that potentially deep recessions are probably already under way.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:53 am

Silverboat.com Introduces Socially Responsible Lending for Seniors at Risk in Today's Financially Turbulent Times

ROCKVILLE, Md., Oct. 24 /PRNewswire/ -- Reverse mortgage loans have increased ten-fold since the year 2000 as seniors experience double-digit losses in their retirement...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 11:50 am

AIG taps government loan again: report

(Reuters) - Troubled insurer American International Group Inc had borrowed $90.3 billion from the U.S. government as of Wednesday, three-quarters of the emergency funds made available to it under a federal rescue plan, the Wall Street Journal reported.

Source: Reuters: Business News | 24 Oct 2008 | 11:49 am

Shares plummet on recession fears

Major European share markets plunge across the board as renewed fears of a global recession scare investors.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 11:48 am

Quick Cheat Sheet On Circuit Breakers & Limit Down Futures

Source: 24/7 Wall St. | 24 Oct 2008 | 11:46 am

Asia, Europe to urge key IMF role in credit crisis

Asian and European leaders called Friday for a coordinated response to the global financial meltdown and prepared to endorse a critical role for the International Monetary Fund in aiding...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 11:40 am

S&P 500 futures contract triggers circuit breakers

The Chicago Mercantile Exchange’s circuit-breaker rules go into effect Friday as plunging S&P 500 and Nasdaq 100 futures contracts reach pre-specified limits.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:39 am

OPEC agrees output cut, oil slide goes on

VIENNA (Reuters) - An emergency OPEC meeting on Friday reached swift agreement to chop production by 1.5 million barrels per day (bpd) as a first step toward halting a deep oil price slide.

Source: Reuters: Business News | 24 Oct 2008 | 11:33 am

OPEC agrees output cut, oil slide goes on (Reuters)

Reuters - An emergency OPEC meeting on Friday reached swift agreement to chop production by 1.5 million barrels per day (bpd) as a first step toward halting a deep oil price slide.

Source: Yahoo! News: Business | 24 Oct 2008 | 11:33 am

T. Rowe Price Group Reports Third Quarter 2008 Results

BALTIMORE, Oct. 24 /PRNewswire-FirstCall/ -- T. Rowe Price Group, Inc. (Nasdaq: TROW) today reported its third quarter 2008 results, including net revenues of $555...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Oct 2008 | 11:32 am

Sony shares slide 14 pct after profit warning

TOKYO (Reuters) - Sony Corp's shares tumbled 14 percent to a 13-year low on Friday after the electronics maker halved its profit forecast, as the credit crisis hurts demand for its cameras and flat TVs and drives up the yen.

Source: Reuters: Business News | 24 Oct 2008 | 11:31 am

AIG taps government loan again: report (Reuters)

Reuters - Troubled insurer American International Group Inc had borrowed $90.3 billion from the U.S. government as of Wednesday, three-quarters of the emergency funds made available to it under a federal rescue plan, the Wall Street Journal reported.

Source: Yahoo! News: Business | 24 Oct 2008 | 11:29 am

Bank shares tumble amid global plunge

NEW YORK (Reuters) - Shares of U.S. banks tumbled before the bell on Friday as global markets sold off on fears the global economy is in the throes of recession.

Source: Reuters: Business News | 24 Oct 2008 | 11:27 am

Stocks plunge amid fears for global economy

Global stocks plumbed multi-year lows as fears of a global recession mounted. London's FTSE 100 dropped below 4,000,and there were sharp falls in Asia and across Europe. Futures pointed to a 550-point fall for the Dow
Source: FT.com - US homepage | 24 Oct 2008 | 11:26 am

Does The Dow Drop 1,000 Points?

Source: 24/7 Wall St. | 24 Oct 2008 | 11:25 am

Futures Movers: OPEC to cut production by 1.5 million barrels a day

The Organization of Petroleum Exporting Countries on Friday said it was slashing 1.5 million barrels of oil a day in production as the world’s financial crisis dampened demand for energy.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:24 am

Asia Markets: Indexes fall hard on bloody Friday

Asian markets suffer further deep losses Friday, with indexes in Japan, Hong Kong, South Korea, Australia, Singapore and Taiwan dropping to their lowest levels in at least three years as fears of a global recession sweep across the region.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:24 am

Britain on the brink of recession

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 11:21 am

Stocks head for sharp decline on recession fear

Dow Jones industrial average futures are down 550 points, the maximum allowed.

NEW YORK — Wall Street headed for another precipitous drop today as fears of a punishing global recession stirred panic among investors and sent world financial markets into a tailspin. The Dow Jones industrial average futures were down 550 points, the maximum allowed price change.

Source: L.A. Times - Business | 24 Oct 2008 | 11:20 am

Student loan fugitives

Carl, a Florida native now living overseas, is afraid to move back to the United States. That's because he can't afford to pay his student loans.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 11:16 am

An OPEC Cut That Doesn’t Count

OPEC said it would cut oil production by 1.5 million barrels a day. Its normal output is about 32 million, so in most cases since the embargo in 1973/74, that would mean a lot. It might take crude up 10% or 20%. In this recession, it will hardly matter at all.

OPEC knows how deep the current recession is. The cartel does not want to drive prices up too much. It simply wants to keep them from falling. If it can keep crude around $70, its members can get by, even if the salad days are over

OPEC would also prefer not to deepen an economic slowdown. It doesn’t want to be blamed for millions of people losing their jobs. It does not want the burden of drops in sales for everything from cars to bottles of beer which might be caused by higher gas prices.

OPEC is also aware that there is no guarantee countries like Russian and Canada will follow its move. If supply levels only drop modestly, the cartel’s actions may not mean much. It needs to appear moderate so that the other 60% of the oil production facilities across the world do not simply open the gates and keep the crude coming.

OPEC may be at great risk of surviving. Ironically it has great power when the economy is strong. China needs it to fuel growth. America needs it for all those cars it sells and all those shoppers going to malls.
In a recession, OPEC becomes a eunuch. If things in the global economy stay bad, it may never recover to its previous state.

-30-

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Oct 2008 | 11:13 am

Doubts hang over any Nissan-Renault-Chrysler deal (Reuters)

Reuters - Two years ago, Nissan and Renault considered extending their partnership to General Motors , and investors hated the idea. With speculation now turning to a possible link-up with Chrysler, analysts are balking even more.

Source: Yahoo! News: Business | 24 Oct 2008 | 11:10 am

Doubts hang over any Nissan-Renault-Chrysler deal

TOKYO (Reuters) - Two years ago, Nissan and Renault considered extending their partnership to General Motors , and investors hated the idea. With speculation now turning to a possible link-up with Chrysler, analysts are balking even more.

Source: Reuters: Business News | 24 Oct 2008 | 11:10 am

Ryanair to close base in Valencia

Budget airline Ryanair is closing its base at Valencia in Spain with the loss of 70 weekly flights, it says.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 11:10 am

UK shrinks, companies suffer, China says outlook grim

LONDON (Reuters) - Britain's economy shrank, China said the outlook was grim and companies from Japan to France were punished on Friday as a downturn born of the worst financial crisis in 80 years took root.

Source: Reuters: Business News | 24 Oct 2008 | 11:02 am

UK shrinks, companies suffer, China says outlook grim (Reuters)

Reuters - Britain's economy shrank, China said the outlook was grim and companies from Japan to France were punished on Friday as a downturn born of the worst financial crisis in 80 years took root.

Source: Yahoo! News: Business | 24 Oct 2008 | 11:02 am

Peugeot to launch 'massive' cuts

Peugeot Citroen says it will start "massive" production cuts as the automotive sector is hit by the downturn.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 11:00 am

National Express exits Dot2Dot airport link

National Express is pulling out of its Dot2Dot airport transfer service less than a year after launching it.
Source: Latest Business News from Times Online | 24 Oct 2008 | 10:59 am

Recession fears hit Asian markets

Share prices on Asian markets tumble for a third day as investors fear a global recession will hit company profits.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 10:57 am

London Markets: British stocks stumble as U.K. GDP shrinks 0.5%

U.K. stocks tumble on Friday on a day when the British economy officially was contracting, though the slide was as much as about worries over growth in Asia as the domestic economy.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 10:47 am

Peugeot-Citroen cuts targets as sales fall

PSA Peugeot-Citroen became the latest European car maker to suffer the ill-effects of the economic slowdown today as it reported a 5.2 per cent fall in third-quarter sales and slashed full-year targets.
Source: Latest Business News from Times Online | 24 Oct 2008 | 10:44 am

Check out the most reliable cars

These 2009 cars and SUVs beat all the others in predicted reliability according to Consumer Reports.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 10:40 am

Another Break-Up Of Microsoft (MSFT)

It is not that long ago that The Justice Department suggested that Microsoft (MSFT) was so powerful that it needed to be broken into pieces. In 2000, Justice hired famous banker Bob Greenhill to do the analysis. The antitrust case faltered, and nothing was done.

Steve Ballmer has probably figured out that Wall St. hates his company. The headlines say that he is no Bill Gates. He has done nothing to make his company special again. It is a big software operation which will eventually be brought down by Google (GOOG) and open source junk like Linux.

Ballmer wanted to make his internet operation bigger, but the Yahoo! (YHOO) deal never got off the ground. He is probably happy. Yahoo!’s earnings proved that it is one the way to the file marked “dead meat”.

What was extremely clear from Microsoft’s earnings yesterday is the company is not one firm but two. Going into a recession and stock market downturn, that is not going to help the share price. The company has already put up a huge stock buyback. That lifted the shares for one day.

Leaving aside the fact that Microsoft’s guidance was OK, the division between it device and online businesses and software operations was as pronounced as it ever has been.

The performance of the business software, server products, and operating system parts of the company was extraordinary. All three posted significant improvements in revenue. In some cases, operating profits in these businesses rose in double digits

At the company’s online operation, revenue rose $100 million to $770 million, but the operating loss was up to $480 million. With a recession in advertising well under way and Microsoft’s piece of the critical search business well below 10%, there is absolutely no way this business can recover. Ever.

In the part of Microsoft called “devices”, mostly is Xbox and failed Zune product, revenue actually dropped slightly to $1.8 billion. Operating income was flat at $180 million. In other words, discounting is bring down sales and the device business has a 10% operating margin compared to the firm’s software operations which, in some cases, have margins of over 60%.

If Ballmer wants to have any legacy, the answer is right in front of him.

-30-

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Oct 2008 | 10:33 am

Survey underlines grim outlook for eurozone

The eurozone economy contracted in October at a speed not seen since the euro's launch in 1999, with the global bank crisis leading to the devastation of industry's order books, according to a closely-watched survey
Source: FT.com - US homepage | 24 Oct 2008 | 10:23 am

Case studies: David Haythornthwaite, Akhtar Yusuf

I'm paying for the bank's mistakes
Source: Latest Business News from Times Online | 24 Oct 2008 | 10:22 am

Microsoft outlook better than feared

SEATTLE (Reuters) - Microsoft Corp reported better than expected quarterly profit and reduced its outlook less than many investors had feared in the face of tough economic conditions.

Source: Reuters: Business News | 24 Oct 2008 | 10:19 am

Stocks plunge nine percent on recession fears (AFP)

AFP - London's FTSE 100 index of top shares plunged by more than nine percent on Friday as data revealed that the economy shrank in the third quarter, placing it on the brink of recession.

Source: Yahoo! News: Business | 24 Oct 2008 | 10:16 am

Bailout Moves Toward $2 Trillion

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

Currencies: Risk aversion sends yen to 13-year high versus U.S. dollar

Mounting worries over emerging markets and prospects for a global recession fuel another sharp rise by the Japanese yen Friday, sending the unit to its strongest level against the U.S. dollar in 13 years.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 9:57 am

OPEC Orders Cut in Oil Production

The OPEC cartel ordered a cut in oil production of at least 1.5 million barrels a day. After the statement, the price for Brent crude immediately dropped below $63 a barrel.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 9:56 am

Asian Markets Plummet on Earnings Fears

The Nikkei plunged 9.6 percent, and Europes major exchanges opened down about 5 percent.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 9:53 am

East Asia set to start $80bn fund

East Asian countries plan to set up an $80bn swap scheme to protect the region from financial volatility and help boost liquidity.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 9:48 am

Crunch guide

Robert Peston explains what caused the crisis
Source: BBC News | Business | World Edition | 24 Oct 2008 | 9:44 am

Recession Deepens: Another Five Million Unemployed And Bottom Fishing Becomes An Art

No matter where economists look there is no evidence that a recession in the US, EU, and Asia is doing anything but deepening. The stock markets are the least of it. Some of the indexes in the largest countries are off 40% from their peaks reached a year ago. Banks are failing. In cases where the government has not stepped in some have disappeared and others have been merged into more healthy institutions. Healthy for now, that is.

The financial sector could easily lose several hundred thousand jobs in the US. New York City expects employment in the banking and brokerage sector to fall by 150,000. Marriages like the ones between Bear Stearns and JP Morgan (JPM) and Wachovia (WB) and Wells Fargo (WFC) will clearly put tens of thousands of people out of jobs. Goldman Sachs (GS) apparently will let 10% of its workers go.

The trouble has spread well beyond banks. Merck (MRK), Xerox (XRX), GM (GM), and Chrysler just said they will push more poor souls out the door. Even a successful tech company such as Hewlett-Packard (HPQ) has taken significant numbers of people out of its workforce.

So, how many people, how many people in total could lose their employment over the next year?
In the recession which started in 1973, unemployment hit about 9%. As of last month, the comparable figure was at 6.1%. With a national labor force in the US of about 145 million people, that means 4.5 million more people could be out of work relatively soon. That does not take into account the “shadow” army of unemployed, the people the government says are no longer looking for jobs.

Economists, particularly those with a dark view of the world, are concerned that 9% may not be the end of it. As people lose work, retail spending drops which can lead to more layoffs. The housing crisis could get worse and foreclosures may rise. More people with mortgages could find themselves “underwater”, a term which lacks the power of describing the dilemma. Credit is rarely given to those with such substantial leverage, although it was common in 2005 and 2006.

The press and those in despair almost always turn to the government for answers to the most perplexing questions. But, in this case they will not get an answer. Short of what was done in the 1930s. there are no ready solutions and even a series of actions like those taken by Roosevelt might do no good.

Put bluntly, it is hard to imagine that at least another five million people will not lose their jobs over the next twelve months. No matter how much money is pumped into the banking and mortgage systems, the carnage cannot be prevented. It will be left to private enterprise to take advantage of the situation, a process which is fueled by opportunistic thinking and greed. Bottom fishing will become an art. Finding opportunities in the rubble will make some people rich. At that point, the economy will start to drive back up again. The rich willing to take risks almost always sense a bottom.

Douglas A. McIntyre

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

World markets sink; dollar hits 13-year low vs. yen

Japan's Nikkei 225 stock average drops 9.6% to 7,649, its first close below 8,000 since May 2003. Germany's DAX is down 5% in early trading.

SINGAPORE — World stock markets tumbled Friday on growing alarm that a global recession will ravage corporate profits.

Source: L.A. Times - Business | 24 Oct 2008 | 9:39 am

Why you'll pay for federal spending cuts

Slashing government spending is certainly a phrase that plays well on the campaign trail.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 9:37 am

Global problem

The UK downturn is mirrored around the world
Source: BBC News | Business | World Edition | 24 Oct 2008 | 8:53 am

Shares plunge as UK stands on brink of recession

Britain’s economy shrank in the three months to September for the first time in 16 years, all but confirming that it is now in the grip of its first recession since the early Nineties.
Source: Latest Business News from Times Online | 24 Oct 2008 | 8:30 am

Asian Markets Plummet on Earnings Fears, and Europe Follows

Japan and South Korea led Asian stock markets in steep declines. The Nikkei plunged 9.6 percent, and Europes major exchanges opened down about 5 percent.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 8:26 am

John Lewis sales sink on floods and fears

Sales at John Lewis, the department store chain, plunged for a fifth consecutive week as shoppers cut back even further on spending as Britain careered towards its first recession in 16 years.
Source: Latest Business News from Times Online | 24 Oct 2008 | 8:22 am

Media Digest 10/24/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Greenspan said he was shocked by the credit meltdown.

Reuters reports that the value of Bear Stearns $30 billion mortgage portfolio fell 9%.

Reuters writes that Asia and Europe are turning to China for economic fixes.

Reuters writes that Microsoft's earnings forecast was better than expected.

Reuters writes that a wave of job layoffs swept across the US.

Reuters said the SEC chairman Cox supports a merger with the CFTC.

Reuters writes that Sony (SNE) shares dropped 13% after a profit warning.

Reuters reports that AIG (AIG) will tap the government's loan facility again.

Reuters writes that Samsung unveiled a grim forecast for future earnings.

Reuters reports that the credit crisis may cause it to revisit the terms of the Anheuser Busch (BUD) buyout.

The Wall Street Journal reports that Cerberus would look for a significant stake if GM (GM) and Chrysler merged.

The Wall Street Journal reports that shipping firms are reporting sharply lower volumes.

The Wall Street Journal reports that Congress may go further than current plans to help homeowners.

The Wall Street Journal writes that China is pushing new measures to encourage home ownership in a slowing economy.

The Wall Street Journal reports that job cuts will make the slump worse.

The Wall Street Journal reports that OPEC faces a tough call on oil production cuts during a recession.

The Wall Street Journal reports that the economic crisis has set back economies in emerging markets, perhaps by years.

The Wall Street Journal reports that few banks have increased loan loss reserves even as the economy falters.

The Wall Street Journal reports that airlines posted big losses, but said that their conditions may improve soon.

The Wall Street Journal reports that Xerox (XRX) cut jobs.

The Wall Street Journal reports that Google (GOOG) was blocked from buying an advertising company by the Russian government.

The Wall Street Journal reports that The New York Times (NYT) may cut its dividend.

The Wall Street Journal reports that profits are up at defense firms.

The New York Times reports that the West is in talks to help poorer nations.

The New York Times reports that Canada will guarantee bank loans.

The New York Times reports that nuclear power may be making a comeback.

The New York Times reports that GM and Chrysler are planning more cutbacks.

The New York Times reports that jobless claims exceeded forecasts.

The FT writes that the ECB signaled further interest rate cuts.

The FT reports that oil markets are betting against and OPEC production cut.

Bloomberg reports that ten-year Treasuries will have their biggest weakly gain since 1995.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Oct 2008 | 7:54 am

GE Money pulling the pin on NZ market

GE Money is withdrawing from the home loan, car finance and small business market in New Zealand. The finance company is stopping new mortgage lending and lending on vehicles and will lay off 80 staff, TV3 reported. Existing customers...
Source: New Zealand Herald - Business | 24 Oct 2008 | 7:20 am

Asia Markets And Europe Open 10/24/2008 Huge Drops (SNE)(HMC)(TM)

Markets in Asia were sharply lower.

The Nikkei dropped 9.6% to 7,649. Sony (SNE) fell after warning on earnings. Honda (HMC) and Toyota (TM) were both down over 5%.

The Hang Seng dropped 7.2% to 12,722. HSBC (HBC) was off over 6%.

The Shanghai Composite fell 1.9% to 1,840.

At the open in Europe, the FTSE was off 3.3% to 3,954. The DAX dropped 5.5% to 4,271. The CAC 50 was down 4.9% to 3,148.

Data from Reuters.

Douglas A. McIntyre

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

Oldenburg speaks

How a German town is coping with the global crisis
Source: BBC News | Business | World Edition | 24 Oct 2008 | 7:04 am

Restaurant industry is starving for customers

As the economy worsens, Americans are eating out less, and more at home, to save money. With less foot traffic, businesses are seeing their sales and profits plummet -- and their expenses rise.

Joseph and Victoria Hurley are the kind of customers that keep restaurateurs up at night.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

Home defaults slide as California law puts on the brakes

A new law mandating delays in foreclosure actions may create a fleeting lull, but observers wonder whether it will lead to widespread mortgage workouts.

The number of people losing their homes in California hit a record high of nearly 80,000 in the last three months, but a new state law appears to be dramatically slowing the foreclosure process -- at least for now.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

The Maxima's good, but Infiniti's the front-runner

The '09 Maxima veers closer to its upscale sibling but remains a conventional sedan.

According to our friends at Kelley Blue Book Marketing Research, you can tell which presidential candidate a person supports by looking at what kind of car they drive. Republican Sen. John McCain has the support of 66% of full-size pickup truck drivers; not surprisingly, perhaps, hybrid drivers are more inclined toward Democratic Sen. Barack Obama. Alaska Gov. Sarah Palin scores very high with drivers of Zambonis.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

House panel heaps blame on Alan Greenspan for financial crisis

The former Fed chairman, in a four-hour grilling, says the breakdown of credit markets left him in 'shocked disbelief.' He warns of a significant rise in unemployment.

As Federal Reserve chairman, Alan Greenspan testified before Congress on dozens of occasions over almost two decades. Time after time, lawmakers hung on his every word, soliciting the wisdom of "the Oracle" on the economy.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

Dow closes with 172-point gain after late rally

The Dow Jones industrials climb to 8,691.25 after a wave of buying during the last half-hour of trading. Bargain hunters are lured by stock prices that fell steeply in recent weeks.

Investors endured another seesaw session Thursday on Wall Street before a rally in the last half-hour of trading pushed the Dow Jones industrial average to a 172-point gain for the day.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

Countrywide plan may cut mortgage rates for 395,000 borrowers

Interest rates on some subprime and 'option ARM' loans will temporarily go as low as 2.5%.

With calls growing for stronger action to help troubled homeowners, consumer advocates are hailing a mortgage-modification program being implemented by Bank of America Corp.'s Countrywide unit as the most ambitious effort yet to avert foreclosures.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

Wall Street still spends heavily on lobbying, political campaigns

Even companies appealing for government help have spent millions lobbying Congress -- some of them ranking among this year's biggest campaign donors.

Although American corporations have been under intense financial strain in recent months, there is one category of spending they haven't cut back on: lobbying and campaign contributions to influence government policy. Even Wall Street interests appealing for government help have spent millions lobbying Congress -- some of them ranking among this year's biggest campaign donors.

Source: L.A. Times - Business | 24 Oct 2008 | 7:00 am

AT & T to raise monthly fee for basic service 23%

The increase, to $13.50 from $10.94, will start Jan. 1 and will affect about half of the carrier's 6.5 million residential land lines in California. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

Australian stocks: Lowest close in four years

The Australian share market shrugged off a stronger Wall Street to wipe A$30 billion from its value to close at its lowest level in almost four years. Falls from banking and resource stocks drove the local bourse lower for the...
Source: New Zealand Herald - Business | 24 Oct 2008 | 7:00 am

Dow closes with 172-point gain after late rally

The Dow Jones industrials climb to 8,691.25 after a wave of buying during the last half-hour of trading. Bargain hunters are lured by stock prices that fell steeply in recent weeks. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

Restaurant industry is starving for customers

As the economy worsens, Americans are eating out less, and more at home, to save money. With less foot traffic, businesses are seeing their sales and profits plummet -- and their expenses rise. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

FTC cracks down on credit repair companies

In a civil suit, the agency accuses Success Credit Services of Woodland Hills of violating the Credit Repair Organizations Act by contending that it could quickly clean up credit reports. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

'High School Musical 3' up against 'Saw V' this weekend

Two very different films, 'High School Musical 3' and 'Saw V,' vie for viewers. "High School Musical 3: Senior...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

Microsoft lowers projections despite slight rise in profit and sales

The software giant -- which reported revenue of $15.06 billion, a record for first quarter, and a 2% increase in net income -- says it is curbing spending in anticipation of hard economic times ahead...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

Orange County's Measure J is seen as a sure bet

County employee unions aren't even fighting the plan to require voter approval of future pension increases. Orange...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Oct 2008 | 7:00 am

Oil price falls despite supply cut by producers

Oil producers this morning unanimously voted to cut their output by 1.5 million barrels a day, following an emergency meeting in Vienna to discuss the plunging price of crude.
Source: Latest Business News from Times Online | 24 Oct 2008 | 6:54 am

NZ stocks: Market gives up early gains

The New Zealand sharemarket gave up early gains to close down and turnover was extremely light ahead of the long holiday weekend. The benchmark NZSX-50 index closed down 28.793 points, or 1.026 per cent, at 2778.546. Turnover was...
Source: New Zealand Herald - Business | 24 Oct 2008 | 6:00 am

Currency: NZ dollar weak as investors go for caution

The New Zealand dollar was mixed but generally weaker going into the long holiday weekend as investors continue to shun risky currencies. The NZ dollar was trading at US58.55c at 5pm from US58.02c at 8am and US59.04c at 5pm yesterday. It...
Source: New Zealand Herald - Business | 24 Oct 2008 | 5:30 am

Trends & Innovations - Thursday

Patients cut back on health care
Source: Investor's Business Daily: BUSINESS | 24 Oct 2008 | 12:52 am

When In Pain, Back Surgery Doesn't Wait For Economic Recovery

In a stalled economy, investors might be rightfully concerned about weak spending for high-ticket capital gear. That's certainly been a concern...
Source: Investor's Business Daily: BUSINESS | 24 Oct 2008 | 12:52 am

Home Prices Fall As Lenders Step Up Sales Of Foreclosures

As backyards go, Ron Tremblay says his have "the finest-clipped weeds in the neighborhood."
Source: Investor's Business Daily: BUSINESS | 24 Oct 2008 | 12:52 am

Business Briefs - Thursday

Raytheon tops, raises guidance. The defense contractor said Q3 EPS rose 17% to $1.01, a nickel above views. Revenue jumped 12% to $5.8 bil, above...
Source: Investor's Business Daily: BUSINESS | 24 Oct 2008 | 12:52 am

After The Close - Thursday

SYNAPTICS (SYNA), a maker of PC peripherals, said Q1 EPS rose 39% to 50 cents ex items, 6 cents over views. Sales grew 34% to $116 mil. Shares...
Source: Investor's Business Daily: BUSINESS | 24 Oct 2008 | 12:52 am

Fed takes $2.7bn paper loss on Bear

The Federal Reserve said it had suffered a $2.7bn paper loss on the $29bn portfolio of toxic assets it took over from Bear Stearns in March, news which could fuel the backlash over the use of government funds to rescue financial institutions
Source: FT.com - US homepage | 24 Oct 2008 | 12:43 am

Tourism hit by $500m slump in domestic travel spend

Spending by domestic travellers fell by $507 million or 6.4 per cent to $7.39 billion in the year to June 2008, new research from the Ministry of Tourism shows. "Weaker economic conditions and high fuel costs during the period...
Source: New Zealand Herald - Business | 24 Oct 2008 | 12:30 am

Blog: Dear Chairman Greenspan: Remember that cheap money?

Source: L.A. Times - Business | 24 Oct 2008 | 12:05 am

Wall St layoffs could pass 200,000

Traders and investment bankers might have more to worry about than dwindling bonus pools this year as mass firings on Wall Street are set to hit a record. The fallout from this year's global credit crisis has claimed jobs on all...
Source: New Zealand Herald - Business | 24 Oct 2008 | 12:00 am

AP suspends pricing plan, to review its structure (AP)

AP - The Associated Press suspended plans Thursday for a new pricing structure that drew complaints from many of its member newspapers facing unprecedented financial hardships. It promised another $9 million in savings on top of $21 million previously announced.
Source: Yahoo! News: Business | 23 Oct 2008 | 11:54 pm

Contact board backs down as shareholders turn up the heat

Contact Energy's board has backed down on any base fee rise for directors after enduring a roasting by hundreds of small shareholders, heat from within the business community and political pressure. After an unscheduled board meeting...
Source: New Zealand Herald - Business | 23 Oct 2008 | 11:30 pm

$600k investment boost for online social lending business

Nexx, an on-line social lending business being developed by four young entrepreneurs at business growth centre The ICEHOUSE, has raised $600,000 in funding from a group of angel investors led by the ICE Angels. Nexx co-founder...
Source: New Zealand Herald - Business | 23 Oct 2008 | 11:15 pm

ECB signals further interest rate cuts

A senior executive at the European Central Bank has signalled that it is minded to cut interest rates across the Continent again in the short term to throw a lifeline to struggling businesses.
Source: Latest Business News from Times Online | 23 Oct 2008 | 11:14 pm

Drax announces £2bn plan for biomass power stations

Drax, the power generator that owns Europe’s biggest coal-fired power station, yesterday revealed plans to build three new biomass-fuelled power stations at a cost of £2 billion.
Source: Latest Business News from Times Online | 23 Oct 2008 | 11:00 pm

NZ Shares: Market up in early trading

The New Zealand sharemarket rose firmly in early trade today, after US stocks clawed back from five-year lows in a volatile session. The NZ market was helped to move ahead early by a 12c gain in Fletcher Building shares to $6.12...
Source: New Zealand Herald - Business | 23 Oct 2008 | 11:00 pm

Royal Mail’s pension gap grows to £4bn as profits double on a smaller postbag

Royal Mail’s pension deficit has soared 25 per cent to £4 billion and is likely to jump further after an actuarial review next March.
Source: Latest Business News from Times Online | 23 Oct 2008 | 11:00 pm

ECB signals further interest rate reductions

Signs are emerging that the European Central Bank will soon cut eurozone interest rates again, as weak growth prospects and tumbling inflation point to a loosening of monetary policy
Source: FT.com - US homepage | 23 Oct 2008 | 10:31 pm

Microsoft profit up, but outlook soft

SEATTLE - Microsoft said its fiscal first-quarter profit edged up two per cent, buoyed through economic uncertainty by corporate customers that renewed licenses for servers and other business programs. Microsoft's guidance...
Source: New Zealand Herald - Business | 23 Oct 2008 | 10:30 pm

Tom Colicchio's Credit-Crunch Dinner Is Only on Tuesdays

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 10:06 pm

Chapdelaine's Newman Says ETFs Are Safe Harbor

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 9:36 pm

Microsoft results offer hope to tech sector

Microsoft is weathering the economic downturn better than expected, with sales in the three months to the end of September topping Wall Street estimates, according to new figures
Source: FT.com - US homepage | 23 Oct 2008 | 9:12 pm

VIX Index of U.S. Stock Option Prices Retreats 2.7% to 67.80

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 8:51 pm

'I made a mistake,' admits Greenspan

Alan Greenspan, the former Federal Reserve chairman, said the credit crisis had exceeded anything he had imagined and admitted he was wrong to think that banks would protect themselves from financial market chaos
Source: FT.com - US homepage | 23 Oct 2008 | 8:26 pm

Greenspan Under Fire

Alan Greenspan, whose once-sterling reputation for economic savvy has come under attack during the recent financial turmoil, told a congressional committee Thursday that he was "shocked" that lenders' self-interest in protecting their shareholders did not prevent the current crisis.

But Greenspan, who championed deregulation during his nearly two-decade tenure at the Federal Reserve, turned aside accusations that he failed to anticipate the crisis and thwarted regulation of credit derivatives that contributed to undermining the markets.

Skeptical and even cranky lawmakers—who returned to Washington amid election campaigns in which they faced tough questions from their constituents—were clearly in the mood to pin blame on Greenspan, or anyone, for failing to prevent the economy's spiral.

"The Federal Reserve had the authority to stop the irresponsible lending practices that fueled the subprime mortgage market," said Henry Waxman, Democrat of California, head of the House Oversight and Reform committee, which is holding a series of hearings to grill actors in the meltdown.

Lawmakers had summoned Greenspan, along with Christopher Cox, head of the Securities and Exchange Commission, and John Snow, a former Treasury Secretary, to help them figure out what the regulators did wrong, and what can be done to prevent a future occurrence.

Greenspan, who appeared aloof and scholarly—and maybe more than a little offended at being challenged so pointedly—spent four hours in the congressional hot seat, repeatedly defending his decisions and insisting that his hands-off-the-free-market beliefs had not influenced the amount of government oversight.

Sparring with Waxman, Greenspan conceded that he was "partially" wrong not to have moved against credit default swaps. He said his belief that banks and others were best situated to protect their own interests was flawed. That was a "shock," he added.

"This crisis, however, has turned out to be much broader than anything I could have imagined," he said, adding that given the financial damage already done, "I cannot see how we can avoid a significant rise in layoffs and unemployment."

No one had a complete understanding of the financial landscape, Greenspan said, adding that he didn't fully understand what had happened.

People who relied on the "self-interest of lending institutions to protect the shareholder's equity (myself especially) are in a state of shocked disbelief," he said. "Such counterparty surveillance is a central pillar of our financial markets' state of balance. If it fails, as occurred this year, market stability is undermined."

Stabilization of house prices is indispensable, Greenspan said, but predicted "that is many months in the future."

Committee Democrats could barely contain their exasperation, but they weren't alone. Tom Davis of Virginia, the committee's ranking minority member, called credit default swaps "basically legalized gambling" and wondered why more had not been done to regulate them.

Greenspan, who left the Fed in 2006, told him—and other lawmakers—that the swaps had only become a problem in the past two years. That implied that it was a problem that had cropped up after his watch was over.

Cox, once a lawmaker himself, came under repeated questioning. John Mica, Republican of Florida, pressed the Republican view that the whole financial mess is the fault of Fannie Mae and Freddie Mac for encouraging home ownership for poor people.

"There are those who should go to jail," Mica said, without elaborating.

Cox, whose agency said it is investigating 50 cases of subprime lending, said that "aggressive law enforcement is needed now more than ever."

Waxman—clearly annoyed by digs that he had delayed the committee's hearing on Fannie and Freddie until after the election—interrupted others several times to outline the role the two institutions played. He insisted that their 13.7 percent share of the market "are hardly market-driving numbers."

So what did go wrong? According to Greenspan, subprime mortgages pooled and sold as securities "became subject to explosive demand from investors around the world."

Sophisticated investors "wrongly viewed them as a 'steal,'" because U.S. home prices were rising and foreclosure rates "were deceptively modest," he said.

Pressures on lenders to supply more securities "collapsed subprime underwriting standards from 2005 forward."

However, he warned that the "type of regulation to prevent this in the future is onerous."Related Links
Please, Mr Greenspan, Shut Up
Don't Blame Canada
Greenspan: No Regrets


Source: Portfolio.com: Top 5 | 23 Oct 2008 | 8:00 pm

Moulton Sees Distressed Homeowners `Walking Away'

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 7:49 pm

Peggy Noonan Says U.S. Needs More `Patriotic Grace'

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 6:57 pm

Blair Says She Never Gave Interviews as Prime Minister's Wife

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 6:52 pm

FTN Midwest's Dwyer Sees Unprecedented Degree of Writedowns

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 6:50 pm

IWMI's Chartres Sees Need to Review Global Irrigation Policies

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 5:02 pm

Obama's ready for prime time

Barack Obama will run half-hour prime time ads on national networks next week. The payoff: Reaching 20 million Americans right before the election. The cost: about $3 million. But, Steve Henn reports, it's not like he's short on cash.
Source: Marketplace | 23 Oct 2008 | 4:22 pm

Stupid decisions that sink businesses

If recent business disasters prove anything, it's that some people never learn. Kai Ryssdal talks with the authors of "Billion Dollar Lessons," a book on how the same mistakes caused 750 companies to fail.
Source: Marketplace | 23 Oct 2008 | 4:22 pm

Old mortgage practice has merit

The plan to help homeowners facing foreclosure will cost $40 billion, and the money would come from the original pool of bailout money. But commentator Andrew Caplin resurrects an old idea that doesn't involve all that cash.
Source: Marketplace | 23 Oct 2008 | 4:21 pm

Ca-ching goes the Federal Reserve

The Federal Reserve has bailed out Fannie Mae, Freddie Mac, Bear Stearns, Lehman Brothers. And there's more to come. The total is estimated at $1.4 trillion. Wondering where that money comes from? Rico Gagliano finds out.
Source: Marketplace | 23 Oct 2008 | 4:21 pm

The sky didn't fall on Lehman swaps

Hundreds of billions in losses were expected from Lehman Brothers' credit default mess. But the reality wasn't so disastrous after all -- more like $5 billion. New York City Bureau Chief Amy Scott reports.
Source: Marketplace | 23 Oct 2008 | 4:21 pm

Will GM benefit cuts become a trend?

GM is suspending its contributions to employee 401k's, a rare step that affects thousands of GM workers. Will other companies follow suit as they struggle to cut costs? Jeremy Hobson has the story.
Source: Marketplace | 23 Oct 2008 | 4:21 pm

Alan Greenspan's 'shocked disbelief'

Former Fed Chairman Alan Greenspan told Congress he's "shocked" at the financial meltdown. He did concede his belief in deregulation was flawed, but Nancy Marshall Genzer asks, did Greenspan really not see this coming?
Source: Marketplace | 23 Oct 2008 | 4:21 pm

Hope at last for struggling homeowners

The government's financial bailout team is turning its attention to helping struggling homeowners avoid foreclosure -- finally, some would say. Washington Bureau Chief John Dimsdale has details.
Source: Marketplace | 23 Oct 2008 | 4:21 pm

Obama Assembles U.S.'s `Largest Law Firm' to Monitor Election

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 3:48 pm

CERA's Yergin Sees Lower Oil Prices as Giant Stimulus Package

Source: Bloomberg - All Podcasts | 23 Oct 2008 | 3:43 pm

How to Pitch Your New Fund

Sandy Weill would like to know if any investors out there would be interested in a private equity fund he would manage that would invest in distressed financial firms and assets—were such a fund to exist.

No, it doesn't exist yet, but the former Citigroup chief (or rather, "people familiar with the matter") is getting free publicity in the media to help promote the idea of such a fund and to potentially gauge investor interest. There's nothing quite like a story in the Wall Street Journal to float your idea!

Beats Craigslist, anyway.

Former Morgan Stanley co-president Zoe Cruz has also reached out to the media to perform some head-hunting duties. Earlier this week, TheStreet.com reported that Cruz, who was pushed out of Morgan Stanley last year amid deep trading losses under her purview, would like to join an asset-management firm but is also considering starting a hedge fund, citing "a person familiar with her thinking."

Would any firms out there like to reach out to Ms. Cruz? Or are there any potential investors for a hedge fund she might launch? She would be delighted to hear from them.

It's not a sign she's desperate. In fact, TheStreet.com also reported she's already turned away a potential job offer from UBS, which reached out to her. Weill, for his part, has been focused in recent years on philanthropic efforts while keeping a close eye on his former employer, Citigroup.

In these troubled times, raising new funds isn't an easy task. For those with known experience on the Street, like Weill and Cruz, it makes sense to use the media to trot out ideas.

Weill is reportedly contemplating this fund with two former Citigroup executives, Michael Klein and Michael Masin. They have begun reaching out to investors in a more formal fashion, and they hope to raise $5 billion.

Weill tried raising a fund three years ago, according to the Journal, but shelved the idea after Citigroup's board protested on the grounds that it would compete with the firm. Now, evidently, Weill must feel confident that Citigroup is in no position to stop him.




Related Links
Citi Under Siege
Let the Hedge Fund Lawsuits Begin
A Legend's Bloated Legacy


Source: Portfolio.com: Top 5 | 23 Oct 2008 | 2:00 pm

Culling the Herd on the Street

Last summer, New York City officials described how the job cuts on Wall Street were happening at a slow but steady pace. "It's like the tsunami is still making its way across the ocean," one official told the New York Times.

The tidal wave is now just beginning to crest. Goldman Sachs, the leader on Wall Street and the one firm seemingly in the best position to survive the financial crisis, is cutting 10 percent of its workforce, or about 3,200 jobs, according to several reports today.

Those job cuts come on top of the tens of thousands of jobs already lost at Citigroup and elsewhere on the Street. Thousands of jobs were lost when J.P. Morgan took over Bear Stearns, and Barclays is expected to eliminate 3,000 jobs as it integrates the U.S. operations of Lehman Brothers. Job cuts of as much as 10,000 are expected from the acquisition of Merrill Lynch by Bank of America.

The New York City comptroller, William Thompson, has estimated that 165,000 private-sector jobs could be lost in the next two years, up from his summer estimate of 85,000. And even that estimate may be too optimistic. More jobs were lost in the market crash and relatively modest recession at the start of the decade.

The fact that Goldman is cutting now, when it did not do so earlier amid the credit crunch, indicates that the firm is becoming more pessimistic about the next year, says Douglas McIntyre on 24/7 Wall Street.

"Goldman must be looking at the next year and seeing a potential compounding of its losses and no recovery in its core businesses. All those poor souls would not be going if the trouble was only likely to last another quarter or two."

Shaun Springer, chief executive officer of Napier Scott Executive Search Ltd. in London, agrees, telling Bloomberg News: "When a lean and mean firm starts trimming, they're cutting into muscle. The fact that they are cutting 10 percent is quite indicative of the fact that there are still a lot of problems ahead."


Related Links
High Anxiety
Looking Down
Wall Street Huddles for Safety


Source: Portfolio.com: Top 5 | 23 Oct 2008 | 12:00 pm

RadioShack posts higher quarterly profit (Reuters)

Reuters - Electronics retailer RadioShack Corp reported a higher third quarter profit on Thursday helped by demand for digital television converters and video games.
Source: Yahoo! News: Business | 23 Oct 2008 | 10:49 am