|
|
|
|
Oil bounces $4 off 17-month lowOil surged Wednesday as rising stock prices appeared to temper concerns about waning demand for petroleum products.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 1:25 pm GM delays product development to save cash: report (Reuters)
Source: Yahoo! News: Business | 29 Oct 2008 | 1:20 pm Profit-taking likely to lead to flat Wall Street open (Reuters)
Source: Yahoo! News: Business | 29 Oct 2008 | 1:20 pm Profit-taking likely to lead to flat Wall Street openNEW YORK (Reuters) - Stocks headed for flat open on Wednesday as profit-taking and concerns about rising oil prices offset optimism about a possible interest-rate cut and signs of a thaw in credit markets.Source: Reuters: Business News | 29 Oct 2008 | 1:20 pm Icelandic-owned airline bankruptThe Icelandic-owned Sterling Airways says it will file for bankruptcy, leaving up to 700 passengers stranded at London's Gatwick airport.Source: BBC News | Business | World Edition | 29 Oct 2008 | 1:18 pm Orders for big-ticket items riseNew orders for manufactured big-ticket items rose in September, the government said Wednesday, surprising economists and indicating some resilience in the manufacturing sector.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 1:17 pm Fiscal rules are dead - CameronDavid Cameron says Gordon Brown's fiscal rules have "collapsed completely" as the two leaders clash over Labour's economic record.Source: BBC News | Business | World Edition | 29 Oct 2008 | 1:16 pm Durable goods orders rise unexpectedlyWASHINGTON (Reuters) - New orders for long-lasting manufactured goods rose unexpectedly in September by 0.8 percent, led by surging demand for defense goods and transportation equipment, the Commerce Department said on Wednesday.Source: Reuters: Business News | 29 Oct 2008 | 1:16 pm China cuts rates, Fed and others set to followNEW YORK/LONDON (Reuters) - China cut its interest rate for the third time in six weeks on Wednesday, and central banks in the United States, Japan and Europe are expected to follow by the end of next week to bolster economies facing recession.Source: Reuters: Business News | 29 Oct 2008 | 1:15 pm China cuts rates, Fed and others set to follow (Reuters)
Source: Yahoo! News: Business | 29 Oct 2008 | 1:15 pm VW shares halve as Porsche eases short squeezeFRANKFURT (Reuters) - Shares in carmaker Volkswagen nearly halved on Wednesday after controlling shareholder Porsche took steps to ease a squeeze on shortsellers that more than quadrupled the stock in days.Source: Reuters: Business News | 29 Oct 2008 | 1:13 pm VW shares halve as Porsche eases short squeeze (Reuters)
Source: Yahoo! News: Business | 29 Oct 2008 | 1:13 pm GM delays product development to save cash: reportDETROIT (Reuters) - General Motors Corp is delaying planned spending on product development for 2009 and 2010 in a bid to save cash, Automotive News reported on Wednesday.Source: Reuters: Business News | 29 Oct 2008 | 1:11 pm GM global sales plungeGeneral Motors reported sharply lower global sales as weakness in the nation's leading automaker's domestic sales spread to overseas markets.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 1:09 pm Startups cashing in on election '08When 100,000 people turned out in St. Louis recently to hear Barack Obama speak, his campaign's ability to organize such a massive rally in a red state owed much to the deft use of digital technology from a company called Distributive Networks.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 1:07 pm P&G hits targets but lowers outlookProcter and Gamble, the world's largest consumer goods company, met its long term sales and earnings growth targets during its most recent quarter, despite the gathering clouds over global economic growthSource: FT.com - US homepage | 29 Oct 2008 | 1:06 pm Even Asia Is Weak For GM (GM)
GM had pinned it hopes on Latin America, where it has done well for some time, and Asia where auto sales or most global car companies have been good as ownership levels rise. No such luck. GM said sales for the Latin America, Africa and Middle East region moved up 3.4% in the third quarter and Asia-Pacific sales up only 2.6% Worldwide the company lost over 11% of its unit volume in Q3 compared to last year as sales fell to 2.1 million units. Douglas A. McIntyre Source: 24/7 Wall St. | 29 Oct 2008 | 1:05 pm Hedge funds make £18bn loss on VWHedge funds lose £18bn betting on Volkswagen shares falling after the shares rise 348% in two days.Source: BBC News | Business | World Edition | 29 Oct 2008 | 1:04 pm Cut in US interest rates expectedThe US Federal Reserve is widely expected to reduce US interest rates from their current level of 1.5% later.Source: BBC News | Business | World Edition | 29 Oct 2008 | 1:03 pm Procter & Gamble quarterly profit risesCHICAGO (Reuters) - Procter & Gamble Co posted a higher quarterly profit on Wednesday, helped by price increases and a benefit from foreign exchange rates, but warned volatile markets would weigh on annual results.Source: Reuters: Business News | 29 Oct 2008 | 1:02 pm Day Trader Alert: Big Pre-Market Drops on Guidance (MOLX, STM, VPRT, WSM)
Molex Inc. (NASDAQ: MOLX), an electronics component company, slashed guidance due to the weakening trends. The company took its guidance down to $0.18 to $0.22 EPS after a $0.04 restructuring item, and took revenues down to $750 to $800 million. First Call estimates were $0.35 EPS and $over $851 million in revenues. Shares are indicated lower down to around $13.00 after closing at $14.44 yesterday. Shares were down to $12.67 in after-hours trading Tuesday, and the 52-week trading range before this was $12.96 to $30.61. STMicroelectronics N.V. (NYSE: STM) announced that its earnings have now swung to a loss and announced lower guidance for the coming quarter. It has not gone out on a limb to call 2009 yet, but so far overseas trading has this one down. Shares were trading even worse than this earlier this morning, but shares are down 3.5% at $8.36 pre-market. Its 52-week trading range is still intact at $7.42 to $17.25. VistaPrint (NASDAQ: VPRT) is trading sharply lower. The online printer for marketing materials and business forms slashed guidance after yesterday’s close, but its past quarter was stronger than expected with a 35% gain in average daily order volume. Shares are indicated down 16% on this volume at $20.29. This will mark new recent lows as the 52-week trading range of $20.71 to $48.60. Williams-Sonoma (NYSE: WSM) is indicated down by roughly 10% pre-market after the company issued a strong earnings warning for the second half of the year. It now sees a loss for this last quarter and next quarter has been more than cut in half. With overly pricey kitchen items, it is obvious that price-conscious consumers are opting to go to cheaper competitors to buy the same items for less. Its 52-week trading range may remain intact today as that has been a range of $9.01 to $31.88. This was a $45.00 stock back in 2006.
Jon C. Ogg Source: 24/7 Wall St. | 29 Oct 2008 | 1:01 pm Wall Street focus on Fed decisionUS stocks were braced for another volatile session following one of their strongest rallies in history as inverstors awaited the Federal Reserve's interest rate decision.Source: FT.com - US homepage | 29 Oct 2008 | 12:56 pm BMI being taken over by LufthansaGerman airline Lufthansa is to take over UK carrier BMI, giving it the second-largest number of flights from London's Heathrow.Source: BBC News | Business | World Edition | 29 Oct 2008 | 12:46 pm China cuts rate as hopes grow for global actionChina will cut interest rates for the third time in six weeks amid signs of another co-ordinated global attempt by central banks to restore confidence to financial markets.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:45 pm Surprise rise in durable goods may help stocksA surprise gain on big-ticket manufacturing goods is adding to already upbeat sentiment on Wall Street a day after an enormous surge in stocks. Stocks are poised to open higher. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:44 pm China cuts interest rates againChina's central bank has announced an interest rate cut of 0.27% in order to stimulate economic growth.Source: BBC News | Business | World Edition | 29 Oct 2008 | 12:42 pm Surprise rise in durable goods boosts sentimentA surprise gain on big-ticket manufacturing goods is adding to already upbeat sentiment on Wall Street a day after an enormous surge in stocks. Stocks are poised to open higher. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:42 pm The man who could save Wall StreetAt 11 o'clock in the evening on Saturday, Sept. 13, Larry Fink was about to board a flight from New York to Singapore. The following Monday he was scheduled to meet with the managers of several Asian sovereign-wealth funds. For the head of BlackRock, one of the world's largest asset managers, this trip was a huge opportunity that could mean billions of dollars in new business.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 12:42 pm Durable Goods Somehow Show Upside Surpise
The headline number came in at +0.8% and the ex-Transportation number came in at -1.1%. Economists were mostly looking for a drop at -1.0% headline estimate. On an ex-Defense basis, Durable Goods were -0.6%. Business equipment spending wasn't that hot, as it showed a reading of -1.4%. August's reading was -2.2% for business equipment spending. August Durable Goods were also revised to -5.5% from -4.8%, so this is coming off of a horrible month before. Don't look for any help from primary metals, which fell by a rate of -4.5%. Computers and electronics also fell by -1.4%. These numbers are in no way "hot" and won't keep the FOMC from making the same rate cut decision that would have been made with data as of 7:00 AM this morning. But at least the whole shooting match hasn't gone to hell in a hand basket.
Jon C. Ogg Source: 24/7 Wall St. | 29 Oct 2008 | 12:40 pm America: Still number oneThe United States is suffering the worst financial crisis since the Great Depression. The nation's reliance on the rest the world to support its rampant spending is increasing. Now some people are asking the once-unthinkable question: Is the United States at risk of losing its status as the world's top financial superpower?Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 12:37 pm Durable goods orders unexpectedly rise (Reuters)
Source: Yahoo! News: Business | 29 Oct 2008 | 12:34 pm Durable goods orders unexpectedly riseWASHINGTON (Reuters) - New orders for long-lasting manufactured goods rose unexpectedly in September by 0.8 percent, led by surging demand for defense goods and transportation equipment,...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:34 pm Sept. durable goods rise by largest since JuneGovernment data show orders to U.S. factories for big-ticket manufactured goods posted an unexpectedly strong showing in September. A surge in demand for airplanes and autos pushed orders...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:34 pm China cuts interest rates for third time in six weeksChina's central bank said Wednesday it is cutting its key one-year interest rates by just over a quarter-percentage point, continuing its recent easing trend as it focuses on slowing economic growth.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:30 pm Cutting Through the SlumpThe Federal Reserve is widely expected to cut its benchmark interest rate by a half point, to 1 percent, this afternoon. Will it matter?The stock market certainly thinks so. U.S. stocks surged late Tuesday, with the Dow Jones industrial average climbing 10.9 percent. Asian and European markets are rallying today: Tokyo stocks closed up 7.7 percent, and London was up 5 percent at midday. (For more on what the media is saying on the markets, click here.) But what the stock market thinks is besides the point. As Robert Cyran says on Breakingviews.com: “Equity markets are the freak shows of the current crisis – entertaining, but secondary to more important events in debt markets. What matters is getting credit flowing again.” And that will take some time. A rate cut will provide some help, says James Hamilton on the Econbrowser blog. For one, the current benchmark, the target on the federal funds, now at 1.5 percent, has been 50 basis points above the three-month Treasury bill rate. “That gap is the one factor contributing to the worrisome TED spread that the Fed clearly has the power the change,” he says. Calm seems to be the order of the day. The Federal Reserve’s program to backstop the commercial paper market appears to be working. And fears that a rate cut will batter the dollar, driving needed capital away from our shores are diminishing as more and more central banks line up rate cuts of their own. China cut its interest rate for the third time in six weeks, to 6.66 percent from 6.93 percent. The Bank of Japan, the European Central Bank, and the Bank of England are expected to announce easing measures as well this week. If the Fed cuts by a half point, it would bring interest rates to their lowest level since June 2004. If the economy does not pick up in the coming months, questions will arise about what, if anything, the Fed has left in its arsenal. Related Links Hit the Panic Button Shock, Not Much Awe More Ways to Fix Libor Source: Portfolio.com: Top 5 | 29 Oct 2008 | 12:30 pm Kraft profit slightly ahead of Wall Street viewCHICAGO (Reuters) - Kraft Foods Inc posted slightly better-than-expected quarterly profit on Wednesday, helped by price increases and new products that boosted sales.Source: Reuters: Business News | 29 Oct 2008 | 12:29 pm Cereal, snack sales boost Kellogg's 3Q profitKellogg Co. says strong sales of its cereals and snacks boosted profit 12 percent in the third quarter. The cereal maker says profit for the three months ended Sept. 27 rose to $342...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:27 pm MarketWatch First Take: Morgan Stanley and free toastersNo, that’s not a Halloween costume. Morgan Stanley really does want to be a bank.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:27 pm HRE taps bail-out fund for €15bnHypo Real Estate has become the first private sector group to ask for help from Germany's €500bn financial sector bail-out fund, saying it needs €15bn of liquidity help for short-term requirementsSource: FT.com - US homepage | 29 Oct 2008 | 12:23 pm Hoping the worst is over for insurersA trio of major insurance companies will announce their third quarter financial results after the closing bell Wednesday and investors are bracing for poor results.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 12:23 pm Indications: U.S. stock futures hesitate after Tuesday's mega-rallyU.S. stock futures traded lower on Wednesday after one of the biggest single days of gains in history, with markets waiting for an expected half-point rate cut from the Federal Reserve.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:23 pm Stock futures indicate Street will extend gainsWall Street prepared to extend some of its gains Wednesday a day after its enormous surge and as investors awaited an afternoon decision on interest rates from the Federal Reserve. StockSource: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:18 pm Virgin proposes Lufthansa tie-up after BMI dealVirgin Atlantic has proposed combining its operations with Lufthansa to create a European super-carrier following the German national airline’s €400 million (£318 million) acquisition of Britain's bmi.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:13 pm Bonds bet rate cut won't helpU.S. Treasurys rose early Wednesday ahead of an anticipated rate cut by the Federal Reserve, as investors worried that the government's intervention may not be enough to stave off a recession.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 12:12 pm Futures Movers: Crude rallies 6% ahead of Fed decision, inventories dataCrude-oil futures surged more than 6% Wednesday, gaining for the first time in four sessions, as rallies in global stock markets and a possible rate cut by the Federal Reserve boosted investors’ confidence.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:11 pm Porsche offers to settle VW hedging tradesPorsche said it would seek to calm Volkswagen's share price by offering to settle hedging positions worth up to 5% of VW's ordinary shares, after its disclosure of a large interest in the carmaker sent VW shares skyrocketingSource: FT.com - US homepage | 29 Oct 2008 | 12:10 pm Consumer cutback bites into Jones Apparel's profitJones Apparel Group Inc. says its third-quarter profit tumbles 93%, hurt by the exit of certain brands and consumers paring back on discretionary purchases in the face of an economic slowdown.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:10 pm Top Analyst Upgrades & Downgrades (CEG, DENN, ODSY, ARO, D, EXEL, JNJ, VOCS, ZGEN)These are some of the other non-tech analyst upgrades and downgrades from Wall Street firms this Wednesday morning:
Here are the technology upgrades and downgrades. Jon C. Ogg Source: 24/7 Wall St. | 29 Oct 2008 | 12:08 pm Emerging Markets Report: Hungary snares $25.1 billion IMF-EU-World Bank bailoutHungary on Wednesday secured a $25.1 billion bailout package from the International Monetary Fund and the European Union as authorities scrambled to avoid a crisis in Central and Eastern European emerging markets that could wreak further havoc on European banks.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:07 pm Economic Report: Orders for durables up 0.8%, lifted by aircraftStrong demand for airplanes lifted orders for U.S.-made durable goods to a 0.8% gain in September, the Commerce Department reports.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:05 pm IMF deal for Hungary eases central Europe nervesA larger-than-expected $25.1bn bail-out of Hungary by the IMF and European Union boosted currencies and exchanges in the bloc's ex-communist countries, though the regional fall-out from the financial crisis looked to have some way to runSource: FT.com - US homepage | 29 Oct 2008 | 12:04 pm US dollar falls, gold risesThe U.S. dollar was lower Wednesday against other major currencies in European trading. Gold rose. The euro traded at $1.2809, up from $1.2597 late Tuesday in New York. Other dollar...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:02 pm FTSE joins global equities reboundThe rebound on London's equities market gathered pace, driven by the outlook for further global interest rate cuts and strengthening US and Asian indicesSource: FT.com - US homepage | 29 Oct 2008 | 12:02 pm Wall Street awaits the FedU.S. futures declined Wednesday, a day after hopes that a Federal Reserve rate cut would help shore up the economy sent the Dow Jones industrial average up nearly 900 points.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 12:01 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:01 pm Caisse d'Epargne trader is heldFrench police detain a trader over the loss of 751m euros at savings bank Caisse d'Epargne, judicial officials say.Source: BBC News | Business | World Edition | 29 Oct 2008 | 12:00 pm NewsWatch: U.S. stock futures fall after Tuesday's mega-rallyU.S. stock futures traded lower on Wednesday after one of the biggest single days of gains in history, with markets waiting for an expected half-point rate cut from the Federal Reserve.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 12:00 pm Promisec Releases New YouTube Videos on Protecting Your Company's Internal Network Through Increased Visibility and ControlPromisec Challenges Companies to Take the Promisec Promise: in Just One Hour, They Will Find at Least One Potential Threat on an Endpoint in Your Organization or Give You Their ProductSource: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:00 pm Texas Petrochemicals Announces Fiscal 2009 First Quarter Earnings and Conference Call ScheduleHOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- Texas Petrochemicals, Inc., (OTC: TXPI.PK) announced today it will release its fiscal 2009 first quarter financial results...Source: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:00 pm Legg Mason Reports Results for Second Quarter of Fiscal Year 2009- Assets Under Management of $842 Billion down 8.8% versus prior quarter - BALTIMORE, Oct. 29 /PRNewswire-FirstCall/ -- Legg Mason, Inc. (NYSE: LM) today reported itsSource: Infocious RSS raw feed - channel BNewsBusiness | 29 Oct 2008 | 12:00 pm Smoking Out the SmugglersIt is an illicit global trade in the hundreds of billions of dollars that affects the health of millions.It's not heroin or cocaine, but tobacco smuggling. Countries have tried to combat it for years. Now negotiators for 150 countries are working to forge a global agreement that should give some muscle to those efforts. And it will mean having tobacco companies shoulder more of the burden. Under proposals for an international agreement being considered, cigarette makers would be required to disclose the identities of the providers of the raw materials like tobacco and paper. The companies would also have to identify which wholesalers are buying their products. Companies that refuse to reveal the information could be barred from making or selling cigarettes. These measures, advocates say, will allow government investigators to penetrate the delivery chain, which is said to be dominated by organized crime in some countries. "When the government seizes smuggled Marlboro cigarettes, in many countries, customs officials send the cigarettes to Philip Morris International to verify that the cigarettes are counterfeit," said Kathryn Mulvey, international policy director of antitobacco campaigner, Corporate Accountability International. "This is like a police officer calling a known drug dealer to ask if the shipment of cocaine waiting in the dock belongs to him. If the cigarettes are authentic, the tobacco giant could be in big trouble, so there are strong incentives for the corporation to determine they are counterfeit," she said from Geneva, where she was monitoring the negotiations. Among the steps being weighed in Geneva is requiring cigarette makers to track their cigarettes—from creation to consumption—with packs and cartons carrying bar codes or holographic stamps. Another proposal is to step up the prosecution of smuggling and to increase the penalties. If negotiators can hammer out an agreement, a new global pact would follow on the 2005 World Health Organization treaty against tobacco use that bans sales to minors as well as tobacco advertising and sponsorships. Countries that signed the treaty are participating in rounds of negotiations, the most recent of which concluded last weekend, to work out what is called a protocol to the 2005 treaty. Much is at stake. Some 11 percent of worldwide cigarette sales, or about 600 billion cigarettes a year, are contraband. An estimated $50 billion in tax revenues is lost every year as packs and cartons pass under governments' tax radar. That money goes to fund criminal enterprises and, in some cases, terrorism. Big tobacco can't participate in the talks, but it has put a congenial face on the stringent measures. While industry revenues are up because of higher prices and lower operating costs, fewer cigarettes are being shipped. Tobacco companies worry that consumers' crimped buying power will mean cutting back on extras like cigarettes, and that states could raise taxes to regain revenues being lost during tough economic times. British American Tobacco, which is the second largest global company, said it would not oppose proposals to trace the manufacturing and delivery chain. One reason the company offered is that it had learned this month that one of its subsidiaries in Brazil had used an intermediary to supply dried tobacco to a Russian factory in Kaliningrad. A B.A.T. spokeswoman, Catherine Armstrong, said the company had taken measures to prevent further sales to any illegitimate customers. But companies are not the only offenders. According to the U.S. Center for Public Integrity, a foundation-funded investigative group, Russia shipped more than $1 billion worth of cigarettes to Europe last year, and only a fraction were seized by customs officials. Most every country worldwide is affected, and some recognizable names have popped up. Last year, for example, Slobodan Milosevic's widow was charged with smuggling tobacco products. Earlier this month, Switzerland charged 10 people with laundering some $1 billion in cigarette-smuggling profits. Even some monks in Italy were once accused of taking part in the profitable underground trade. Despite its status as one the globe's top smuggling destinations, the United States won't have a definitive say in the international antismuggling efforts because it has not signed onto the 2005 global treaty. Some members of Congress are trying to tackle the lucrative smuggling trade, arguing that illicit sales help fund suspect groups, including the militant Shiite group Hezbollah, and deprive the government of revenues. Between $2 billion and $4 billion in lost taxes could be recouped by requiring cigarettes to carry high-tech tags to identify where the tobacco was grown and equipment-registration requirements, argued Lloyd Doggett, Democrat of Texas, who introduced one of the bills. Last month, the House of Representatives overwhelmingly passed a bill to crack down on such contraband, making it a felony to sell tobacco in violation of any state tax law. Still, antitobacco campaigners charge that U.S. customs fail to stop much of the illicit tobacco trade, and that a globally coordinated effort would bolster American efforts. But Deborah Arnott, director for the nonprofit group in Britain, Action on Smoking and Health, who attended the negotiations, warned that "a lot more work needs to be done," as countries continue to hash out some often-technical details of setting up a new tracking structure and parry tobacco giants' efforts to fend off changes in their industry. Related Links A Deal Up to Snuff Altria 2: And What Business Are You In? The Economics and Politics of Trade Source: Portfolio.com: Top 5 | 29 Oct 2008 | 12:00 pm Qwest 3rd-quarter net fell 93%; 1,200, or 3%, of jobs to be cutQwest Communications International Inc. on Wednesday said it would eliminate as many as 1,200, or 3%, of its jobs to save money as a weaker U.S. economy contributed to declining quarterly revenue.Source: MarketWatch.com - Top Stories | 29 Oct 2008 | 11:59 am Rate cut hope lifts global sharesUK and other European shares rise sharply, buoyed by expectations that central banks will cut interest rates further.Source: BBC News | Business | World Edition | 29 Oct 2008 | 11:51 am Sony profit down 90 percentTOKYO (Reuters) - Japan's Sony Corp posted a 90 percent fall in quarterly profit as growing worries about the global economy sent the yen higher and hit camera sales, and the company kept its annual profit outlook of a 58 percent decline.Source: Reuters: Business News | 29 Oct 2008 | 11:50 am Oil above $65 as global stocks riseLONDON (Reuters) - Oil was above $65 a barrel on Wednesday, boosted by a surge in global stock markets on expectations the Federal Reserve and other central banks are poised to cut interest rates to revive global growth.Source: Reuters: Business News | 29 Oct 2008 | 11:47 am GMAC seeks bank status for rescue funding: reportDETROIT (Reuters) - GMAC, the auto finance and mortgage company, is seeking to become a bank holding company in order to access the government's $700 billion financial rescue plan, the Wall Street Journal reported on Tuesday.Source: Reuters: Business News | 29 Oct 2008 | 11:41 am Garmin Holding Up Better Than You Think (GRMN)
It guided the year to $3.78 excluding a $0.27 item from a tender versus estimates of $3.89 estimates. Revenues for the year are expected to be about $3.6 billion vs. estimates of $3.8 billion. It expects operating margins to be 24% for the full year, and it sees its tax rate at 19% this year vs. 12% last year. What is interesting here is that this is still growth of 19% on revenues from last year, and its automotive/mobile segment showed a 21% gain to $626 million. Outdoor/Fitness revenues rose 35% to $119 million, while aviation rose 9% to $81 million. Its marine segment declined 8% to $44 million. Gross margin for the overall business in the third quarter came in at 44.3%, a 150 basis point decline sequentially attributed to the weakening of the Euro against the US dollar. Geographically was somewhat surprising with North America up 29% to $585 million and Europe up 9% to $247 million in revenues. Asia revenues were down 21% to $38 million. The GPS giant is scaling down operations due to the slowing economy. It is reducing its inventory by $150 million by year end and says its Nuvifone is on track for delivery in the first half of 2009. We have yet to see any trades and have not seen any formal price indications with two hours to go before the open, but all in all this is actually an impressive report when you consider how tough the environment is. Shares closed yesterday at $21.43 and its 52-week trading range is $19.90 to $124.75.
Jon C. Ogg Source: 24/7 Wall St. | 29 Oct 2008 | 11:38 am Comcast (CMCSA): Cable On Steroids
Revenue was up 10% to $8.5 billion. Operating income was up 20% to $1.67 billion. Comcast added 417,000 digital cable customers in the third quarter of 2008, compared to 503,000 in the same period one year ago. Year to date through September 30, 2008, Comcast added 1.2 million digital cable customers The phone companies should be worried. Comcast added 382,000 high-speed Internet subscribers during the third quarter. Its penetration reached 30% of homes passed or 14.7 million customers. Even worse for the telcos, the company added 483,000 VoIP customers during the third quarter and penetration reached 13% of homes passed or 6.1 million customers. Not a good day for Verizon (VZ) or AT&T (T) Pay-per-view revenue was up 9% People sitting on couches with no money to leave home. Douglas A. McIntyre Source: 24/7 Wall St. | 29 Oct 2008 | 11:31 am Sony and Toshiba profits plummetTwo of Japan's biggest electronics giants have been hit hard by the global economic downturn and the strong yen.Source: BBC News | Business | World Edition | 29 Oct 2008 | 11:31 am P&G (PG): Consumer Still Buys The Cheap Stuff
Net sales increased nine percent to $22.0 billion for the quarter driven by double-digit growth in developing regions. Diluted net earnings per share increased 12 percent to $1.03 for the quarter. Net earnings were up nine percent to $3.3 billion due to sales growth and higher non-operating gains. High commodities hurt margins. They dropped by 240 basis points to 50.5%. The company's baby car operations did remarkably well. Go figure. Douglas A. McIntyre Source: 24/7 Wall St. | 29 Oct 2008 | 11:23 am Big tech goes bargain huntingThese are the days that bring out the power shopper in Larry Ellison. With so much chaos in the markets and panic in the boardrooms, the Oracle CEO sees right now as a fine time to stroll through Silicon Valley and buy pretty much whatever he wants.Source: Business and financial news - CNNMoney.com | 29 Oct 2008 | 11:17 am Early Bird Technology Analyst Upgrades & Downgrades (ARUN, PMCS, RVBD, ALTR, CTRP, PMTC, SNWL, XLNX)These are some of the key analyst upgrades and downgrades from Wall Street that we have seen so far this morning in technology stocks:
Jon C. Ogg Source: 24/7 Wall St. | 29 Oct 2008 | 11:16 am Gulf stocks mostly higher on global rally (AFP)
Source: Yahoo! News: Business | 29 Oct 2008 | 11:15 am Mortgage lending 'rises slightly'The number of mortgages approved for UK house purchases has risen for the first time in a year, the Bank of England says.Source: BBC News | Business | World Edition | 29 Oct 2008 | 10:51 am OPEC's Secret: Oil Field Supply Is Dropping
But, holding back supply is not their only hole card, at least not long-term. The supply of oil in the ground is shrinking and shrinking much faster than almost anyone expected. It will not be long before OPEC cannot increase production because finding new fields is just too difficult According to the FT, "Output from the world’s oilfields is declining faster than previously thought, the first authoritative public study of the biggest fields shows." Annual oil availability could drop as much as 9% a year. That is unless large oil companies up exploration, an investment made more difficult by low crude prices. The International Energy Agency points to the usual suspects as the countries that will drive up demand--India and China. Over the long haul, oil prices are going up. Within a few years, OPEC will not have to cut production down from the pace that it takes crude out of the ground. There will simply be a lot less to take. Douglas A. McIntyre Source: 24/7 Wall St. | 29 Oct 2008 | 10:29 am FTSE joins global equities reboundThe rebound on London's equities market gathered pace on Wednesday, driven by the outlook for further global interest rate cuts and strengthening US and Asian indices. The FTSE 100 rose 176 points to 4,104...Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 10:18 am Wal-Mart (WMT): Winner And Still Champion
The market rejected the new plan. Wal-Mart began to have to fight a two-front war. One was with shareholders that did not like its direction. The other was with local governments and merchants who did not like the big retailer putting mom and pop out of work. Wal-Mart has done better recently. As the economy has worsened, consumers are coming back to its stores to get bargains. They can't afford Whole Foods and Tiffany's now. Wal-Mart has announced new plans to take advantage of its rising fortunes. It plans to pick up market share in the recession by building fewer stores, but picking more desirable locations. It will also put smaller stores in areas which may be under-served but do not need an outlet the size of an aircraft carrier. Wal-Mart can also keep prices low or even drive them lower. It has the advantage of being the world's largest buyer of most retail goods. Getting better prices out of China may be easier now that its economy is beginning to cool. What Wal-Mart is not saying is that it will pick up share using its pricing leverage and its balance sheet. It can wait out weaker retailers like Circuit City (CC) and simply let them fail. Many of those customers will be moving their business to the Wal-Mart consumer electronics section. As for all those little mom and pop stores, they can't get credit and their customer bases are being eaten by the recession. They might as well close now and give out the address of the closest Wal-Mart super store. Douglas A. McIntyre Source: 24/7 Wall St. | 29 Oct 2008 | 10:16 am Volkswagen shares halve as funds lose billionsVolkswagen (VW) shares continued their rollercoaster ride today when they nearly halved in value after the German authorities took action to prevent the volatility in the carmaker's stock from destabilising the German market.Source: Latest Business News from Times Online | 29 Oct 2008 | 10:03 am Mortgage approvals rise for first time in a yearMortgage approvals for house purchases rose in September for the first time in more than a year, but remained near record lows, new figures from the Bank of England show.Source: Latest Business News from Times Online | 29 Oct 2008 | 9:51 am Japanese shares rally on rate cut hopesJapanese shares rallied for a second day on Wednesday as investors pinned hopes on the Bank of Japan cutting rates on Friday, but not all markets enjoyed gains as they region suffered through another volatile day of tradeSource: FT.com - US homepage | 29 Oct 2008 | 9:18 am Japanese shares rally on rate cut hopesJapanese shares rallied for a second day on Wednesday as investors pinned hopes on the Bank of Japan cutting rates on Friday, but not all markets enjoyed gains as they region suffered through another volatile...Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 9:18 am Gains Mount on Asian and European MarketsStocks were mostly higher in Europe and Asia as investors focused on the prospect of interest rate cuts.Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 9:12 am Sonys Quarterly Profit Falls by 72 PercentSony reported a 72 percent drop in profit in the most recent quarter, hurt by a stronger yen and the global economic slowdown.Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 8:26 am A $25 Billion Rescue for HungaryThe International Monetary Fund, the European Union and World Bank agreed to a $25.1 billion economic rescue package for Hungary.Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 8:19 am Toshibas Profit Tumbles 99 Percent on Weak ChipsJapans Toshiba Corp posted a 99 percent plunge in quarterly operating profit, dragged down by weakness in its chip business, but kept its outlook above expectations.Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 7:47 am Sony's second quarter profits plunge 72 percentTOKYO -- Sony's second-quarter profits have plunged 72 percent with a surging yen wiping out the benefits of solid flat-panel TV and PlayStation 3 game machine sales.Source: L.A. Times - Business | 29 Oct 2008 | 7:37 am Sony's second quarter profits plunge 72 percentTOKYO -- Sony's second-quarter profits have plunged 72 percent with a surging yen wiping out the benefits of solid flat-panel TV and PlayStation 3 game machine sales.Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 7:37 am Australian Stocks: Market gives back big early gainsPERTH - The Australian share market closed in positive territory but pulled back from earlier highs of almost 5 per cent. Gains on the local market followed a Wall Street rally triggered by expectations the US Federal Reserve would...Source: New Zealand Herald - Business | 29 Oct 2008 | 7:17 am Occidental Petroleum, BP see oil earnings soarKeeping the profit momentum going as crude prices have fallen poses a challenge for the companies and their rivals.The oil-profit gusher continued Tuesday with Westwood-based Occidental Petroleum posting a 72% boost in earnings for the third quarter on higher production and oil prices that nearly touched $150 a barrel. Oil giant BP reported an 83% jump in net income. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am Dow jumps nearly 900 points despite glum economic newsMarket watchers see no apparent reason for the buying spree. Investors await a possible rate cut by the Federal Reserve today.In Wall Street's continuing game of stock-market roulette, share prices soared in the last hour of trading Tuesday, sending the Dow Jones industrial average up almost 900 points, its second-biggest point gain on record. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am FCC chief urged to delay telecom voteDelay of telecom vote urgedSource: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 7:00 am GM, Ford, Chrysler seek to tap Fed's short-term lending programThe move comes as the credit crisis has forced the automakers to curtail lending to consumers and dealers. The firms are also exploring other federal options.Hard up for cash, the lending arms of all three major U.S. automakers have asked for access to the Federal Reserve's new short-term lending program. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am Google settles copyright dispute with publishers and authorsThe settlement would expand the company's book program, allow consumers to search for and buy books online and give U.S. libraries free access to the database.Google Inc. has closed the book on a long-running copyright battle with publishers and authors over its controversial project to scan the world's libraries by forging a landmark deal that would bring millions of titles to the Internet. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am Emirates Airline lands in L.A. with a splashThe Dubai carrier kicks off nonstop service to the Middle East with a lavish party befitting its opulent accommodations.The world's fastest-growing airline -- and one of the most extravagant -- began nonstop flights between Los Angeles and Dubai this week, and tonight it will throw one of the more lavish Hollywood parties of the season. ¶ Despite global economic turmoil, Emirates Airline, based in the hyper-developing Persian Gulf city of Dubai, is expected to spend more than $3 million for the bash at the Kodak Theatre, hosted by Hilary Swank and featuring an hourlong concert by Ricky Martin. A four-course dinner is being prepared by Wolfgang Puck. ¶ The start of flights to Los Angeles International Airport is the latest link in a growing Dubai connection that has included an investment fund controlled by Dubai's ruling family taking a 45% stake in Eli Broad's multibillion-dollar Grand Avenue project in downtown Los Angeles. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am Online traffic schools need to be policedThe DMV should regulate Web courses as well as brick-and-mortar operations.When it comes to online traffic schools, you'd figure a strong regulator is needed to oversee an industry some say is rife with cheating, with stay-at-home students Googling test answers or having others take courses in their place. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am Christian Science Monitor to discontinue daily print editionThe century-old publication will move almost exclusively to online publication. The change is expected to cut annual costs by millions of dollars for the money-losing newspaper.The century-old Christian Science Monitor said Tuesday that it would discontinue its daily print edition in April and move almost exclusively to online publication, becoming the first major national newspaper to abandon a daily paper-and-ink format. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am Hollywood may not be recession-proof this timeBlame the Internet. The endless stream of free content means strapped consumers can escape without spending at the multiplex or subscribing to premium cable.Worried by the worsening economy, Kristen Olson decided she'd better start saving money. She tallied her expenses and was walloped by sticker shock: She and her roommates were spending $900 a year for cable TV. Source: L.A. Times - Business | 29 Oct 2008 | 7:00 am L.A. is hit hard as home prices continue their record-breaking fallFigures for August show a 26.7 % decline for Los Angeles and Orange counties compared with a year ago. The numbers from 20 metropolitan areas show a 16.6% drop. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 7:00 am Google settles copyright dispute with publishers and authorsThe settlement would expand the company's book program, allow consumers to search for and buy books online and give U.S. libraries free access to the database. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 29 Oct 2008 | 7:00 am NZ stocks: Market jumps after Wall St leapsThe New Zealand sharemarket posted solid gains today against a backdrop of rebounding world markets. The benchmark NZX-50 index jumped in the first 15 minutes by 104 points but couldn't hold the gains. The index closed up 58.493...Source: New Zealand Herald - Business | 29 Oct 2008 | 5:45 am Currency: Dollar makes upward moveThe New Zealand dollar turned upward today in a move with as much intensity as the moves down. Unprecedented volatility continued to be the theme in currency markets. From a US56.14c around 8am the NZ dollar rose as high as...Source: New Zealand Herald - Business | 29 Oct 2008 | 5:40 am Tearing Into the Fed and Treasury PlansEconomist thinks the bailout plan will lead to further problems.Source: SmartMoney.com | 29 Oct 2008 | 4:00 am US Fed to lend NZ Reserve Bank $US15bnWASHINGTON - The Federal Reserve says it will supply New Zealand's Reserve Bank with up to $US15 billion, as part of its ongoing effort to break through a global credit clog. Under the new "swap" arrangement, the US central bank...Source: New Zealand Herald - Business | 29 Oct 2008 | 2:00 am Some managed funds will be covered by deposit insurance, says CullenFinance Minister Michael Cullen expects some managed funds to be covered by a deposit guarantee scheme, but says all such schemes are "fraught with difficulties at the margin". Yesterday AXA New Zealand suspended three mortgage...Source: New Zealand Herald - Business | 29 Oct 2008 | 1:30 am Famed Armored-Truck Transporter Spins Off Home-Security UnitBrink's Friday will complete a tax-free spinoff of its home-security division to shareholders. Already, investors can choose between Brink's, the...Source: Investor's Business Daily: BUSINESS | 29 Oct 2008 | 12:41 am After The Close - TuesdayCEPHALON (CEPH), a biotech, said its Q3 EPS rose 28.3% to $1.18 ex items, missing views by 4 cents. Revenue rose 14% to $498.5 mil, below views....Source: Investor's Business Daily: BUSINESS | 29 Oct 2008 | 12:41 am In Brief - TuesdayCredit Suisse (CS) and Deutsche Bank (DB) have backed out of funding specialty chemicals maker Hexion's $6.5 bil buyout of rival Huntsman (HUN).Source: Investor's Business Daily: BUSINESS | 29 Oct 2008 | 12:41 am Business Briefs - TuesdayOccidental up on pricing, output. The oil exploration and production company's income rose 92% to $2.78 a share, beating views by 7 cents. Revenue...Source: Investor's Business Daily: BUSINESS | 29 Oct 2008 | 12:41 am Trends & Innovations - TuesdayTsunami invisibility cloak toutedSource: Investor's Business Daily: BUSINESS | 29 Oct 2008 | 12:41 am Oxfam slams Air NZ request for higher US-Pacific subsidiesInternational charity Oxfam says Air New Zealand's request for higher subsidies from some small Pacific Island nations for services between them and the United States threatens to cut services vital to the islands. The airline...Source: New Zealand Herald - Business | 29 Oct 2008 | 12:24 am GM and Cerberus race to finalise Chrysler dealGeneral Motors and Cerberus Capital Management are racing to finalise a deal for the carmaker to acquire the private equity group's stake in Chrysler before the US electionSource: FT.com - US homepage | 29 Oct 2008 | 12:18 am Gordon Brown seeks petrol price cut as BP profit hits £6bnThe Prime Minister said yesterday that he was “determined” to see a fall in the price of petrol after BP announced a record three-month profit of £6.4 billion. Although Mr Brown did not directly address the issue of BP's profits, he told reporters: “I notice that some companies have brought their prices down and I encourage others to do so to reflect the fact that the price of oil is now below $60 ($£37.68) when it used to be, for a few weeks, nearly $150.$Source: Latest Business News from Times Online | 29 Oct 2008 | 12:00 am Honda extends UK production cuts to 2009Honda yesterday became the first car manufacturer in Britain to extend production cuts into next year after it increased the scale of its reductions.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:00 am Lloyds TSB blocks interest-only mortgage switchLloyds TSB, one of Britain’s biggest mortgage lenders, came under fire yesterday after it emerged that it was stopping borrowers switching from repayment mortgages to interest-only deals. The lower monthly repayments of interest-only mortgages are often a lifeline for hard-pressed borrowers.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:00 am Life's little luxuries or the bare necessities?Nothing focuses the fashion part of the cortex so much as a stringent budget. If Marie Antoinette had only applied Mr Micawber's law of economics to her wardrobe expenditure (“annual income twenty pounds, annual expenditure £19/19/6d, result happiness. Annual income twenty pounds, annual expenditure £20/0/6d, result misery”) her corpse might look very different. Alas for her, God hadn't come up with Charles Dickens in time for the 1793 debacle, and Dickens certainly hadn't come up with Mr Micawber.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:00 am Turbulent times test our faith in equitiesIt is an article of faith among most investors that equities outperform government bonds. Smart long-term investors put their money in shares because over any lengthy period in the past century or more, they have produced much bigger returns than bonds have.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:00 am 'Catch me if you can,' said student behind biggest chip and PIN fraudThe computer mastermind behind Britain's biggest counterfeit credit card factory was jailed yesterday.Source: Latest Business News from Times Online | 29 Oct 2008 | 12:00 am Flutist James Galway, Painter Giorgio Morandi, `Drawing Babar'Source: Bloomberg - All Podcasts | 28 Oct 2008 | 11:32 pm World will struggle to meet oil demandOutput from the world's oilfields is declining faster than previously thought, the first authoritative public study of the biggest fields showsSource: FT.com - US homepage | 28 Oct 2008 | 11:32 pm Just another bear-market rally?Source: L.A. Times - Business | 28 Oct 2008 | 11:19 pm Wal-Mart prepared to gain share despite downturn (Reuters)
Source: Yahoo! News: Business | 28 Oct 2008 | 11:08 pm Credit crisis squeezes lease operatorThe effects of the credit crunch have now extended to the local vehicle leasing market, where one of the biggest New Zealand players says it won't be offering any new leases for the foreseeable future. Custom Fleet, ultimately...Source: New Zealand Herald - Business | 28 Oct 2008 | 11:00 pm Trade deficit $1.18bn for Sept - near three year highNew Zealand's monthly trade deficit hit a near-three year high in September as imports surged, with diesel and fertiliser showing some of the biggest rises. Figures out today from Statistics New Zealand (SNZ) put the September...Source: New Zealand Herald - Business | 28 Oct 2008 | 10:30 pm Car dealers hit by sales decline, weak economy (Reuters)
Source: Yahoo! News: Business | 28 Oct 2008 | 10:09 pm Stocks rally on talk of Tokyo rate cutUS stocks staged a powerful late rally as hopes for a Japanese interest rate cut helped fuel a dramatic reversal in the yen, easing concerns about the sudden unwinding of the so-called yen carry trade.Source: FT.com - US homepage | 28 Oct 2008 | 9:46 pm NZ Dollar: Kiwi bounces back above US56cThe New Zealand dollar bounced out of bed this morning but the reality of a global recession is expected to bring it back down to earth before too long. After shedding US8 cents in a week before last night, the kiwi was looking...Source: New Zealand Herald - Business | 28 Oct 2008 | 9:30 pm Beer a good bet in a bleak economyAn Australian business news website is reporting that beer is a solid investment option in hard times. A 30-year study of Australian beer sales tracked against the Westpac Consumer Confidence Survey has unearthed compelling evidence...Source: New Zealand Herald - Business | 28 Oct 2008 | 9:30 pm Marshall Front Says Overseas Stocks Can Create Returns Via ETFsSource: Bloomberg - All Podcasts | 28 Oct 2008 | 9:25 pm Yeow! Or Yawn?Like a ship pitching in a hurricane, the stock market rose sharply Tuesday, with major indexes climbing by more than 10 percent.The Dow Jones Industrial Average soared 889 points, closing back above the 9,000 level. While that was the second-largest one-day point gain in the Dow's history, it was only the biggest gain in two weeks. On Oct. 13, the Dow experienced a similarly vertiginous rally, adding 936 points and closing above 9,000. The average promptly fell by more than 500 points on each of the next two trading days. It has bobbed up and down wildly since then. The latest rally came late in the day, a particularly volatile time in markets this year. Some traders attributed the gain to mounting belief that the Federal Reserve will cut its short-term interest-rate target by as much as 50 basis points, or half a percentage point, tomorrow. The Fed is scheduled to announce its decision at 2:15 p.m. Others said the rally was little more than bargain-hunting by traders looking to buy fundamentally sound companies that had been beaten down by forced sales by hedge funds and others facing margin calls.Related Links Cutting Through the Slump The Fed on Deck Four Myths About the Subprime Crisis Source: Portfolio.com: Top 5 | 28 Oct 2008 | 9:00 pm VIX Index of U.S. Stock Option Prices Retreats 16.4% to 66.96Source: Bloomberg - All Podcasts | 28 Oct 2008 | 8:58 pm Morgan Stanley's Jaber Says Credit Growth to Slow in U.A.E.Source: Bloomberg - All Podcasts | 28 Oct 2008 | 7:22 pm Raymond Stone Sees 25 to 50 Basis-Point Fed Funds Rate CutSource: Bloomberg - All Podcasts | 28 Oct 2008 | 6:54 pm $7 Trillion and CountingGovernments worldwide have pledged more than $7 trillion in loans, guarantees, capital injections, and other assistance in their coordinated effort to prop up the global financial system, the Bank of England estimates.About one-third of the total has been offered by the U.S. government, according to the Bank's most recent Financial Stability Report, which it published today. As the Daily Telegraph in London notes, the global figure is equal to more than 12 percent of the world's total economic output this year. Not all the money will be spent. Some will be used to guarantee debts and other assets, many of which still retain some or all of their face value. Some will buy illiquid securities that governments plan to sell later to recoup some if not all of their initial outlays. And some will be used to buy equity in banks, which can be sold later and may eventually fetch higher prices. The total includes government guarantees of about $4.57 trillion worth of banks' "wholesale liabilities," including money-market borrowing; pledges to buy about $620 billion worth of toxic assets; and plans to inject roughly $617 billion worth of capital into banks. The Bank figures that the U.S. portion will total $2.3 trillion, most of it—$1.4 trillion—in the form of guarantees for bank liabilities, including deposits. About $450 billion has been pledged to buy illiquid assets; $250 billion for capital injections into banks; and $193 billion loaned out through the Term Auction Facility so far. "The very scale of government and central bank interventions during the present crisis will pose difficult transitional issues for banks as they seek to repair their balance sheets over the medium term," the Bank warned in the report. "And, looking further ahead," it added, "the events of the past year or so clearly highlight the need for a fundamental overhaul of the regulatory safeguards used to mitigate systemic risk within the financial system."Related Links Hit the Panic Button Bringing Back Regulation's Good Name Split Decision in Europe Source: Portfolio.com: Top 5 | 28 Oct 2008 | 6:30 pm Standard Life's Milligan Says `Stay Away' From Emerging MarketsSource: Bloomberg - All Podcasts | 28 Oct 2008 | 5:45 pm McMahon Calls Exxon's Balance Sheet `Most Secure on the Planet'Source: Bloomberg - All Podcasts | 28 Oct 2008 | 5:03 pm UBS's Donovan Sees Quarter-Point Fed Rate CutSource: Bloomberg - All Podcasts | 28 Oct 2008 | 4:53 pm Rep. Waxman Says Hedge Funds Need Regulation, TransparencySource: Bloomberg - All Podcasts | 28 Oct 2008 | 4:38 pm Looking for jobs with 'President' ObamaBarack Obama's young fans have enjoyed supporting and working for him so much, they are already jockeying for jobs in the new administration. Providing, of course, he is elected. Nancy Marshall Genzer reports.Source: Marketplace | 28 Oct 2008 | 4:31 pm Tinker Bell breaks out on her ownTinker Bell is back, and this time there's no more wearing herself ragged sprinkling fairy dust for that ham Peter Pan. A new Disney series of DVDs feature Tink and her fairy friends. Rachel Dornhelm has more.Source: Marketplace | 28 Oct 2008 | 4:31 pm Letters: AIG, G1 phones and moreThe Marketplace mailbox gave us a lot to think about this week. Kai Ryssdal picked comments on his interview with Rep. Henry Waxman and on Robert Reich's column on the idea of "too big to fail."Source: Marketplace | 28 Oct 2008 | 4:31 pm Annual Wall Street conference shrinksLast year's securities industry shindig took place in Boca Raton and had big name entertainment. Oh, what a difference a year makes. New York City Bureau Chief Amy Scott reports on the pared-down version planned this year.Source: Marketplace | 28 Oct 2008 | 4:31 pm Why are stocks so volatile?The unpredictability and wild up and down surges of the markets stem in part from the low volume of trading. Ashley Milne-Tyte reports on how volume affects market volatility.Source: Marketplace | 28 Oct 2008 | 4:30 pm Companies poach their rivals' bestMore than 2 million people have lost jobs this year, Businesses are hurting. But companies with a little extra cash are finding this an excellent time to poach new talent from competitors. Stacy Vanek-Smith reports.Source: Marketplace | 28 Oct 2008 | 4:30 pm Anxious Americans in no mood to spendForeclosures, gas prices, Wall Street wipeouts -- the daily barrage of bad news has taken a toll on the American consumer, whose confidence in the economy has dropped to almost 50%. Steve Henn reports.Source: Marketplace | 28 Oct 2008 | 4:30 pm Is GM too big to fail too?GM is back looking for government help, and the automaker says it can't afford to wait this time -- it needs $10 million to merge with Chrysler. Together, the argument is, the two companies can survive. Mitchell Hartman has more.Source: Marketplace | 28 Oct 2008 | 4:29 pm Verizon Cut by Deutsche Bank After Third Quarter Sales ClimbSource: Bloomberg - All Podcasts | 28 Oct 2008 | 2:55 pm Whistleblown-upNothing seemed amiss at the multibillion-dollar holding company, Petters Group, as the company's signature glossy magazine rolled off the presses this summer. Inside Lindsay's Playpen Source: Portfolio.com: Top 5 | 28 Oct 2008 | 2:30 pm VW Uber AllesAutomakers everywhere are getting battered by an economic slowdown, but today Europe's top carmaker is the biggest company in the world.Because of a freak event, shares of Volkswagen have spiked, giving it a market value of $370 billion, surpassing that of Exxon Mobil, at $343 billion. On Sunday, Porsche unexpectedly disclosed that it had raised its stake in Volkswagen to 74.1 percent from 35 percent, through the use of derivatives. At a time when much of the world is looking at the markets for signs of whether we can weather a financial crisis, an episode like this makes the volatility in stocks look like slapstick comedy. It is baffling how something so basic as a major shareholder doubling its stake could cause so much turmoil in a market. Yet somehow the acquisition came as a complete surprise. Where was the transparency here? The price spike resulted from a squeeze. A number of hedge funds had shorted VW shares, betting that the company, like other automakers, would fall in the market as consumers cut back spending. In short sales, investors borrow shares and sell them, betting that the stock price will fall and that they can buy them back at a lower price and profit from the difference. But the move by Porsche meant that there were very few shares of VW available. The German state of Lower Saxony, where Volkswagen is based, owns 20 percent. That means only about 5 percent of VW shares were on the market. That scarcity drove up the stock price of Volkswagen. Its shares surged 150 percent on Monday and 93 percent today as hedge funds scrambled to buy shares and cover their positions. "Each and any short-seller in the world is trying to close up their position, and there is no way they can do it except for trying to buy like mad," Heino Ruland, an analyst with FrankfurtFinanz, told Reuters. "Someone is selling it at a rather interesting and rich price: It is about 10 times as much as it should trade." The VW squeeze play may well generate sympathy for short-sellers after months of vilification from politicians and executives who should know better. Shorts have been accused of manipulating stock prices through secretive means. Now they have been the victims of similar force. "I have hedge fund managers literally in tears on the phone," one London-based auto analyst told the Financial Times. Related Links Did the End of the Investment Banks Cause the Latest Sell-Off? Hedge Funds: The Next Shoe to Drop The Shears are Out Source: Portfolio.com: Top 5 | 28 Oct 2008 | 12:00 pm
|
