|
|
|
|
Shell gains from high oil pricesOil giant Royal Dutch Shell reports a 71% jump in quarterly profits to $10.9bn helped by record high oil prices earlier this year.Source: BBC News | Business | World Edition | 30 Oct 2008 | 11:46 am Top Pre-Market Analyst Upgrades (FSLR, JNS, LM, NLC, NBIX, NEM, SPLS)These are some of the top analyst upgrades we are seeing from Wall Street this Thursday morning with about two hours to the open:
Jon C. Ogg Source: 24/7 Wall St. | 30 Oct 2008 | 11:44 am Top Pre-Market Analyst Downgrades (ASH, BWA, DSX, EGLE, MGM, PAAS, SONO)
Jon C. Ogg Source: 24/7 Wall St. | 30 Oct 2008 | 11:41 am Darling pledges business supportAlistair Darling says it is vital to provide funds to small business as he prepares to unveil a £4bn package of support.Source: BBC News | Business | World Edition | 30 Oct 2008 | 11:38 am Motorola posts quarterly loss (Reuters)
Source: Yahoo! News: Business | 30 Oct 2008 | 11:33 am $50 billion home-loan bailout nearRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 11:30 am Euro gains versus dollar after Fed slashes ratesThe euro rallied on Thursday, holding above 1.30 dollars as the foreign exchange market digested a half-point cut in the key US interest rate ahead of crucial growth data, dealers said.Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:29 am Will Motorola (MOT) Kill Spin-Off Of Handset Business
If Motorola's handset numbers get worse, the transaction may not happen at all. Revenue fell from $8.8 billion in the period last year to $7.5 billion in the most recent quarter. MOT had an operating loss of $452 million compared to a loss of $10 million in 2007. The results from the handset business were a mess. Revenue fell 31% to $3.3 billion. At least Motorola's two other operations home networks and enterprise mobility were flat. The handset operation lost $840 billion.Total operating income from the other two divisions was $666 million. Motorola sold only 25 million handsets, which may drop it into fourth place in global market share behind Nokia (NOK), Samsung, and Sony Ericsson. Two years ago, it was No.2 in share of market worldwide. Motorola blamed the delay in separating handsets from the rest of the company on the economy. In reality, the spin-out cannot happen because the handset business is worthless with sales falling this rapidly and huge losses continuing to pile up. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 11:24 am Stock futures point to higher Wall Street open(Reuters) - Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes were up 3.2-3.4 percent on Thursday, pointing to a higher start on Wall Street.Source: Reuters: Business News | 30 Oct 2008 | 11:22 am Stock futures point to higher Wall Street open (Reuters)
Source: Yahoo! News: Business | 30 Oct 2008 | 11:22 am Avon Products' 3rd-quarter profit rises 60 percentAvon Products says third-quarter profit rose 60 percent, boosted by strong sales internationally, demand for new products and a tax benefit. Profit rose 60 percent to $222.6 million, or...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:20 am Global stocks, euro rally on emerging market gainsLONDON (Reuters) - World stocks and the euro rallied on Thursday, driven by bargain-hunting and sweeping gains in emerging markets after the Federal Reserve cut interest rates and opened swap lines to four developing economies.Source: Reuters: Business News | 30 Oct 2008 | 11:19 am Handset market stalls, Christmas fears riseHELSINKI (Reuters) - The world's top mobile phone makers fear further weakening demand after reporting third-quarter growth grinding to a standstill, with only Samsung Electronics gaining market share through price cuts.Source: Reuters: Business News | 30 Oct 2008 | 11:19 am UPDATE 1-AstraZeneca Q3 beats forecasts, ups year guidanceLONDON, Oct 30 (Reuters) - Drugmaker AstraZeneca ,Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:17 am IMF to put five-point financial reform plan to G20: Strauss-KahnThe International Monetary Fund will propose five main ways to reform the global financial system with the fund reasserting a regulating role, when G20 countries meet in two weeks' time,...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:17 am Motorola reports third-quarter loss(Reuters) - Motorola Inc on Thursday reported a Q3 loss of $0.18 per share from continuing operations:Source: Reuters: Business News | 30 Oct 2008 | 11:16 am Hong Kong stock index soars almost 13 percentHong Kong's key stock index soared nearly 13 percent Thursday, gaining for a third straight session to lead a region-wide rally amid fresh efforts in the U.S and Asia to ease the credit...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:12 am Main Street: Follow Wall Street to thriftSometimes it takes a near-death experience to change bad behavior. Think of your friend who quit Lucky Strikes after a coronary incident. Or look at how banks are reducing their dependency on debt after watching rivals go belly-up.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 11:11 am Darling backs Bank's rate policyThe chancellor Alistair Darling reiterates his support for the Bank of England in its fight against inflation.Source: BBC News | Business | World Edition | 30 Oct 2008 | 11:10 am Credit Suisse aims to benefit from UBS weakness in U.S: reportZURICH (Reuters) - Credit Suisse Group AG aims to benefit from rival UBS AG's weakness in the United States, its chief executive said in an interview published on Thursday.Source: Reuters: Business News | 30 Oct 2008 | 11:09 am Japan, Germany to spend billions to ease recessionLONDON (Reuters) - Japan and Germany said on Thursday they would plow billions of dollars into their economies, hoping to provide a cushion against a deep recession and complement a series of expected interest rates cuts.Source: Reuters: Business News | 30 Oct 2008 | 11:09 am Japan, Germany to spend billions to ease recession (Reuters)
Source: Yahoo! News: Business | 30 Oct 2008 | 11:05 am VW defies the economic slowdownVolkswagen manages to report rising profits despite the global economic slowdown that is hitting the car industry.Source: BBC News | Business | World Edition | 30 Oct 2008 | 11:03 am Delta-Northwest deal doneRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 11:02 am Oil rises to $68 on weak dollar, rate cutsLONDON (Reuters) - Oil rose by more than a dollar to more than $68 a barrel on Thursday, boosted by a weak U.S. dollar and hopes that interest rate cuts in the U.S. and China would bolster the world economy.Source: Reuters: Business News | 30 Oct 2008 | 11:01 am [video] Carl Kukkonen, CEO of VIASPACE, Inc. Discusses Acquisition of Inter-Pacific Arts Corp. on WallSt.net's 3-Minute Press ShowPASADENA, Calif., Oct. 30 /PRNewswire-FirstCall/ -- VIASPACE, Inc. (OTC Bulletin Board: VSPC), a company with an objective of transforming proven space and defense...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:00 am Phantom Fiber Corp.; 'Speculative Buy' Rating, Target Price $0.30 by Beacon Equity ResearchDALLAS, Oct. 30 /PRNewswire/ -- Phantom Fiber Corp. (OTC Bulletin Board: PHFB) has received a Speculative Buy rating with a price target of $0.30 by Beacon Analyst,...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:00 am iStar Financial Announces Third Quarter 2008 Results- Total revenues were $341 million; up 5.3% from the prior quarter. - Company records $411 million of loan loss provision during the quarter. -...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:00 am Ritchie Bros. Auctioneers announces strong third quarter results; challenging economic times generate demand for unreserved auctionsVANCOUVER, Oct. 30 /PRNewswire-FirstCall/ - Ritchie Bros. Auctioneers Incorporated (NYSE and TSX: RBA) announces record net earnings for the nine months ended September 30, 2008...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:00 am Oramed Pharmaceuticals to Present at Rodman & Renshaw Healthcare Conference (November 11, 2008; NYC)JERUSALEM, October 30 /PRNewswire-FirstCall/ -- Oramed Pharmaceuticals, Inc. (OTCBB: ORMP.OB) ( href="http://www.oramed.com">http://www.oramed.com ), a developer of...Source: Infocious RSS raw feed - channel BNewsBusiness | 30 Oct 2008 | 11:00 am Upbeat start seen for stocksU.S. stock futures jumped Thursday morning, taking a cue from overseas markets, as investors cheered worldwide efforts to combat the global economic downturn and awaited a key report on the nation's economy.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 10:58 am Treasury: Starts with $125B stock buyRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 10:52 am Japan: Hope for rate cutSource: Business and financial news - CNNMoney.com | 30 Oct 2008 | 10:44 am Japan unveils new stimulus planJapanese Prime Minister Taro Aso unveils the country's second economic stimulus package in as many months.Source: BBC News | Business | World Edition | 30 Oct 2008 | 10:35 am Europe Markets: Shares in Europe higher for third straight dayEuropean shares advanced for a third straight session on Thursday, as investors took on board central bank action to support economies around the world and cheered earnings from Alcatel-Lucent and Unilever.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 10:35 am The Car Business Gets Excellent Again (GM)(F)(TM)
GM (GM) is close to a deal to buy Chrysler. The Federal Reserve may kick in $10 billion to help the companies fire 40,000 people so that the merged company can have better margins. GM's stock is up on the good news. The fact that no one has wanted to buy a Chrysler product for the last two years does not matter much. GM lost 11% its global sales in the third quarter, but management there says they may be seeing a bottom. Gas prices are dropping. How that will offset the fact that potential buyers cannot get loans is not certain, but shares in GM and Ford are up almost 20% in four days. Mazda announced that profits fell 20% last quarter. The company blamed the value of the yen for part of that. It underplayed the drop-offs in sales in its home market and the US. Toyota (TM) has cut its sales forecasts, but investors may think that those could be revised up again as if there had been a resurrection of the American consumer. VW did report a legitimate improvement in earnings, but its market share in Europe in incredible and its is currently the leading seller of cars in China. The GM deal for Chrysler has made it appear to many people that the auto business is okay and that it will get even better next year. That is almost certainly wrong. The US market will only produce 14 million vehicle sales this year. Based on recent trends, that could be worse in 2009. Car companies were already doing badly. How much worse will that get if there are fewer sales to go around? The auto industry in in a deep hole. Nothing that has happened recently has changed that. An industry trying to cut its way to profitability is not much of an industry at all. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 10:31 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 10:31 am Currencies: Dollar and yen slide on investors' renewed risk appetiteRenewed risk appetite in the wake of the Federal Reserve’s interest-rate cut and efforts to shore up emerging economies puts the U.S. dollar and the Japanese yen in a defensive posture. Data reinforce the case for a European recession, with repercussions for the euro.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 10:28 am Oil boosts Shell's profitSource: Business and financial news - CNNMoney.com | 30 Oct 2008 | 10:23 am Buy and hold now for profits laterFor U.S. investors, 1974 was a very scary year. The country was reeling from the Watergate scandal and the OPEC oil embargo, and Wall Street was in the worst bear market since World War II. By October, the S&P 500 was down 48% from its high two years earlier. It finished December with a value of 68.56, some 19% lower than it had a decade earlier.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 10:21 am Shell profit surges 71 percentLONDON (Reuters) - Royal Dutch Shell Plc beat all forecasts with third-quarter current cost of supply (CCS) net profit up 71 percent at $10.9 billion, as high oil prices and asset sales outweighed a 7 percent drop in oil and gas production.Source: Reuters: Business News | 30 Oct 2008 | 10:14 am As World Markets Rally, A Fog Of War Envelops Trading
To put a point on it, there were ample reasons for the markets to become undone and for panic to reign. Over the last two days, markets in Hong Kong and Japan are up almost 20%. In just two days.Only two. The US markets rose close to 10% in a day earlier this week and have held most of those gains. No one would be shocked if the market goes higher over the next few weeks. The momentum is in that direction. Earnings season is almost over, at least for the companies that count. This means the headlines will not be taken up with corporations cutting forecasts for the fourth quarter and next year. Looked at another way, the weight of bad news in the economy has not been lifted. If anything unemployment will be up for the next several months. The best analysts think bank earnings will get worse and that financial companies may have to raise more money. The federal government is looking at a plan to underwrite three million mortgages which means that there are at least three million mortgages that need to be salvaged, not on the basis of the value of the homes or ability of homeowners to pay, but because it will help the economy by bringing stability to the housing market. The conventional wisdom is that the stock market trades on the picture of what Wall St. thinks the economy will look like two quarters from now. That means a judgment about the latter part of the second quarter of 2009. If the credit crisis is over that soon, it was no real crisis. If earnings and employment rebound in 180 days, it was not much of a recession if it was one at all. If retail sales and car sales come flying back, it will be evidence that the consumer's balance sheet has righted itself and the average citizen is flush again with money from his home equity loan and six credit cards in his wallet. The rally is all the rage now. The DJIA might even retake the 11,000 level, or maybe pop up to 12,000. It is not far from there to get back to the all-time high. US markets could rally a total of 20% this week. It will be almost impossible to say why. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 10:11 am More Japan carmakers cut forecasts on demand slumpTOKYO (Reuters) - Mazda Motor Corp and Mitsubishi Motors Corp lowered their profit forecasts on Thursday to bring them in line with the brutal environment of a stronger yen, sinking demand and tightening credit plaguing the industry.Source: Reuters: Business News | 30 Oct 2008 | 9:48 am Gulf stocks slightly higher in thin trading (AFP)
Source: Yahoo! News: Business | 30 Oct 2008 | 9:47 am The Ghost Of Eliot Ness: Cuomo Fights Bank Bonuses (GS)(C)(MS)(JPM)
Cuomo is after the banks which are getting money from the new Paulson bailout facility Why be believes he has any jurisdiction in the matter is pure conjecture. According to The Wall Street Journal, "In separate letters Wednesday, Mr. Cuomo's office requested a "detailed accounting" of expected payments to top management in the coming bonus season." The missives went to the usual suspects at places like Goldman Sachs (GS), Citigroup (C), JP Morgan (JPM), and Morgan Stanley (MS). There was no one home at Bear Stearns or Lehman Brothers to sign for the letters. Cuomo is asking whether any of these payments might be fraudulent conveyances. Perhaps banks which lose money should not give out bonuses, but that is a board fiduciary and shareholder rights issue. It is hard to imagine that all of the blue chip boards of directors were peopled with dupes and morons. They had their say in approving payments. Stockholder advocates get to protest the levels of pay at annual meetings. Even though it does very little, the right represents an odd sort of democracy. Between examining possible bad behavior by former governor Eliot Spitzer and getting financial firms to pay back the money for auction-rate securities, Cuomo may find that the SEC and big public company boards will take exception to his attempt to cut bonuses. The Treasury has the right to move in that direction based on a mandate from Congress. Cuomo could try to get elected to a number of bank boards so his vote can be counted, but that would take too much time. Douglas A McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 9:46 am Chancellor Alistair Darling hints at further interest rate cutsThe Chancellor today appeared to back a further cut in the Bank of England's interest rate in a bid to stimulate Britain's floundering economy.Source: Latest Business News from Times Online | 30 Oct 2008 | 9:43 am Shell profit surges 71 percent (Reuters)
Source: Yahoo! News: Business | 30 Oct 2008 | 9:27 am US rate cut boosts Asian sharesAsian stock markets rise sharply following the interest rate cut from the Federal Reserve in the US.Source: BBC News | Business | World Edition | 30 Oct 2008 | 9:25 am Banks And The Cowardliness Of Accounting
The argument is simple. If Draconian GAAP measures to value bank assets had been more "accurate", much of that red ink could have been avoided. Perhaps banks would not have had to raise so much money. Perhaps the government bailout could have been avoided altogether. According to Reuters, "Fair value accounting, which requires assets to be valued at market prices, has been blamed for billions of dollars in writedowns by some U.S. banks and policymakers." Since some toxic assets do not trade, computer models are used to decide their value. While the models may not be perfect, it is unlikely that all accountants for all banks set up such flawed systems for valuing assets that the entire process was corrupted with judgments which were so remarkably poor that the prices set for mortgage-backed securities was off by any significant amount. The real intent of the desire of banks to change the way their balance sheets have been evaluated is they would like their CFOs to have more say in the valuation. Management's opinions should count for more. Self-serving behavior should be allowed to be part of the weighing and accounting. The call for reform is a call for magic. Men with unusual powers can take away the pain of bank losses. The increase in mortgage defaults can be made less onerous. Capital can be preserved. So can management bonuses. Why should anyone be held accountable? The whole mortgage-backed write-off system was one big mistake, a nightmare that will go away in the morning. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 9:23 am Asian Markets Rally Broadly, and Europe Opens HigherStocks rose in Europe after a broad rally in Asia as several central banks joined the U.S. Federal Reserve in lowering their official interest rates.Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 9:22 am 10 most expensive collegesA college education gets pricier every year. Here is a list of the 10 most expensive four-year colleges and universities this year, based on the latest data from The Chronicle of Higher Education.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 9:09 am Tight financesUS presidential candidates eye the dollars and centsSource: BBC News | Business | World Edition | 30 Oct 2008 | 9:04 am Pound climbs as markets bounce after Fed cutThe pound continued to make a small recovery against the dollar this morning, as the reaction to the Federal Reserve's interest rate cut continued to be absorbed by markets around the world.Source: Latest Business News from Times Online | 30 Oct 2008 | 9:02 am Asia Markets: Nikkei, Hang Seng and Kospi shoot up more than 10%Asian markets shot skyward Thursday, with benchmarks in Japan, Hong Kong and Seoul rocketing 10% or more, after central banks responded strongly to slowing economic growth and turmoil in financial markets by reducing interest rates or boosting access to U.S.-dollar liquidity.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 8:57 am Indications: U.S. stock futures point to gains before GDP dataU.S. stock futures pointed to strong gains at the open Thursday on the day when official data is likely to show, for the first time, that the economy is contracting.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 8:56 am US interest rates slashed to 1%The US Federal Reserve reduces its key US interest rate from 1.5% to 1%, its lowest level since 2004.Source: BBC News | Business | World Edition | 30 Oct 2008 | 8:52 am Alcatel-Lucent shares soar on narrower loss, solid cash positionShares of Alcatel-Lucent rose as much as 17% on Thursday after the world’s largest maker of telecommunications equipment reported a narrower third-quarter loss, affirmed its outlook for the year and reassured investors that it is financially stable.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 8:52 am London Markets: Shares in London manage slight gains as earnings eyedLondon shares struggled to stay in positive territory on Thursday, with weakness for heavyweights such as Royal Dutch Shell and WPP offsetting strong gains for miners.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 8:49 am Deutsche Bank posts profit as rule change limits write-downsDeutsche Bank on Thursday reported an unexpected third quarter profit of 435 million euros ($575 million), helped by a tax gain and a change to accounting rules that allowed the bank to take fewer write-downs on its risky debt.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 8:35 am Profits surge higher at UnileverProfits at the food and household goods firm Unilever surge, helped by disposals and sales holding up despite price rises.Source: BBC News | Business | World Edition | 30 Oct 2008 | 8:29 am Asian Markets Rally BroadlyAsian stock markets rallied across the board as several central banks joined the U.S. Federal Reserve in lowering the cost of borrowing.Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 8:19 am Shell faces call for cheap fuel as profits soarChancellor Alistair Darling today added to growing pressure on UK oil companies to slash the cost of fuel for consumers after Royal Dutch Shell reported a 71 per cent rise in profits to $10.9 billion ($£6.54 billion).Source: Latest Business News from Times Online | 30 Oct 2008 | 8:14 am House prices fall 14.6% amid 34-year sales slumpThe number of homes sold during 2008 has fallen to the lowest level since 1974 after a record 14.6 per cent decline in annual house prices in October.Source: Latest Business News from Times Online | 30 Oct 2008 | 7:59 am Oct. British housing prices see 14.6% annual fallBritish house prices fell for the 12th consecutive month in October, dragging the average price down 14.6% from the year-earlier month as the number of transactions remained near historically low levels, mortgage lender Nationwide said Thursday.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 7:58 am Royal Dutch Shell 3rd-quarter profit climbs 22%Royal Dutch Shell on Thursday reported a 22% rise in third-quarter profit, as rising prices and improving profits from refining and marketing overcame a drop in production.Source: MarketWatch.com - Top Stories | 30 Oct 2008 | 7:54 am Media Digest 10/30/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters writes that improvements in Asia markets show that investors are returning to taking risks. Reuters writes that GM (GM) and Chrysler have agreed to all major terms for a merger. Reuters reports that Delta (DAL) has completed its merger with Northwest, creating the world largest airline. Reuters reports that PNC (PNC) will save billions of dollars due to a tax ruling. Reuters reports that Mazda profits dropped 20%, mostly due to the value of the yen. Reuters writes that NY Attorney General Cuomo has asked for data on Wall St. bonuses. The Wall Street Journal reports that the Fed cut rates to their lowest level since 2003. The Wall Street Journal writes that the IMF will offer as much as $100 billion to countries in need of funding based on new types of loans. The Wall Street Journal reports that "borrowing costs for Fannie and Freddie are rising, instead of falling like the government had envisioned." The Wall Street Journal reports that Wynn (WYNN) keeps building despite a slump in Vegas. The Wall Street Journal reports that Wells Fargo (WFC) got $25 billion from the Treasury. The Wall Street Journal reports that Netflix (NFLX) has set up a deal with Tivo (TIVO) to deliver movies to its DVRs. The Wall Street Journal writes that HP (HPQ) is working on a deal to supply bundled service for netbooks. The Wall Street Journal reports that the government may aid three million homeowners with more affordable mortgages. The Wall Street Journal reports that US GDP is being hurt by falling exports. The Wall Street Journal reports that grocery chains are pushing back against food company higher prices. The Wall Street Journal reports that GM's (GM) vehicle sales dropped 11% in Q3. The Wall Street Journal writes that some of India's biggest firms are preparing large job cuts. The Wall Street Journal reports that a chip glut hurt Toshiba and NEC. The Wall Street Journal reports that Qwest (Q) will cut 1,200 jobs. The Wall Street Journal reports that Starbucks (SBUX) is seeing an improvement in average transactions per store. The New York Times reports that governors are calling for federal rescue packages for states. The New York Times reports that an activist investor wants Target (TGT) to sell some of the land under its stores. The New York Times reports that as gas prices go down driving is going up. The FT writes that US hospitals may have to buy back $8 billion in debt. Bloomberg reports that Deutsche Bank (DB) posted a profit helped by new accounting rules. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 7:51 am Asis Markets 10/30/2008 Big Rally (PTR)
The Nikkei was up 10% to 9,030. Kyocera and Mitsubishi Corp rose sharply. The Hang Seng rose 10.3% to 14,005. CNOOC rose by double digits as did PetroChina (PTR). The Shainghia Composite was up 2.6% to 1,764. Data from Reuters Douglas A. McIntyre Source: 24/7 Wall St. | 30 Oct 2008 | 7:20 am Australian Stocks: Market closes four per cent higherSYDNEY - The Australian sharemarket closed four per cent higher, fuelled by interest rate cuts in the US and big gains in energy and resource stocks locally. At the 1615 AEDT close, the benchmark S&P/ASX200 was up 155.5 points,...Source: New Zealand Herald - Business | 30 Oct 2008 | 7:10 am Sonys Profit Shrinks by 72%, Pressured by Strong Yen and Slow MarketsThe Tokyo-based electronics and entertainment conglomerate was hurt by a stronger yen and the global economic slowdown.Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:07 am Federal backing weighed for revised mortgagesThe guarantees would be intended to encourage lenders to restructure troubled mortgages, curbing foreclosures.Federal officials moved closer Wednesday to guaranteeing as much as $500 billion in mortgages after they are modified to make them more affordable to homeowners, part of the multifront battle to resuscitate the country's flagging economy. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am It's a boom time for lawyersMortgage fraud cases, getting a piece of the financial bailout, staying out of trouble in a downsizing - all can translate into billable hours for the legal profession. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am Loans, savings and the Fed cutBorrowers may bear a lighter interest burden but not all deposit yields will shrink. The Federal Reserve's interest-rate...Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am Federal appeals court weighs California law on violent video gamesThe statute bans the sale or rental of such games to minors and requires that the games be clearly labeled. Game makers say the law violates 1st Amendment rights. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am Stocks fall sharply in final minutes, wiping out early gainIt was another day of wild fluctuations, with stocks selling off toward the end of the session. The Dow closes down 74 points, after a nearly 300-point gain fueled by the Fed's interest rate cut. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am Beauty salons out of style as clients cut hair budgetsTo treat tresses for less, many opt for discount chains and dye-it-yourself products. With stock portfolios in...Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am Federal Maritime Commission challenges ports' clean truck programThe agency will ask a U.S. District Court to strike down parts of the pollution-control effort at the ports of Los Angeles and Long Beach because it may reduce competition. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am It's a boom time for lawyersMortgage fraud cases, getting a piece of the financial bailout, staying out of trouble in a downsizing - all can translate into billable hours for the legal profession.The loose-leaf binders on Beverly Hills attorney Paul Kiesel's blond wood shelves contain hundreds of stories alleging deception, loss and heartache. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am U.S. airfares hit record highAverage U.S. airfares jumped 8.1% in the second quarter to their highest level since the government started keeping track 13 years ago.Source: Infocious RSS raw feed - channel BNPaperBusiness | 30 Oct 2008 | 7:00 am Loans, savings and the Fed cutBorrowers may bear a lighter interest burden but not all deposit yields will shrink.The Federal Reserve's interest-rate cut Wednesday -- the second in three weeks -- will lower the financial burden of many consumer and small-business borrowers. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am Beauty salons out of style as clients cut hair budgetsTo treat tresses for less, many opt for discount chains and dye-it-yourself products.With stock portfolios in the toilet, layoffs looming everywhere and credit hard to come by, many folks are looking for places to cut back. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am College tuition could rise sharply, officials warnThe cost of higher education jumps nearly 6% for students in the 2008-09 academic year. Experts say the widening economic crisis might worsen those bills in 2009-10.A report released Wednesday by the College Board showed that the average price of attending college rose nearly 6% this fall, but education officials warned that the widening economic crisis might push tuition bills sharply higher next year. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am Federal Maritime Commission challenges ports' clean truck programThe agency will ask a U.S. District Court to strike down parts of the pollution-control effort at the ports of Los Angeles and Long Beach because it may reduce competition.The Federal Maritime Commission said Wednesday that it would ask a U.S. District Court to strike down parts of a landmark pollution-control program at the ports of Los Angeles and Long Beach, the nation's busiest international cargo complex. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am Stocks fall sharply in final minutes, wiping out early gainIt was another day of wild fluctuations, with stocks selling off toward the end of the session. The Dow closes down 74 points, after a nearly 300-point gain fueled by the Fed's interest rate cut.The Federal Reserve's half-point rate cut had Wall Street in a party mood Wednesday -- until somebody swiped the punch bowl in the last 10 minutes of the trading session. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am GMAC moves to convert to a bank holding companyAltering its status could boost the firm's access to capital through the federal $700-billion rescue package.GMAC, the financing arm of General Motors Corp., is taking steps to become a bank holding company, potentially giving it greater access to the government's $700-billion financial bailout package, according to sources familiar with the matter. Source: L.A. Times - Business | 30 Oct 2008 | 7:00 am NZ stocks: Market posts modest gainsThe New Zealand sharemarket posted modest gains as world markets had a better day. A lift of 10c in Telecom's share price to 231 helped but Fletcher Building struggled, falling 12c to 549. The benchmark NZSX-50 index closed...Source: New Zealand Herald - Business | 30 Oct 2008 | 6:47 am Currency: Dollar climbs as US currency sinksThe New Zealand dollar climbed today as the United States currency sank and equity markets recovered, reducing risk aversion. But it lost ground against a resurgent Australian dollar. The NZ dollar was US59.25c at 5pm from US57.08c...Source: New Zealand Herald - Business | 30 Oct 2008 | 5:57 am Ex-Fannie Mae chief wishes he said "no" more often: report(Reuters) - Former Fannie Mae Chief Executive Daniel Mudd wished he said "no" to more of the things the company was asked to do, he told the Wall Street Journal in an interview.Source: Reuters: Business News | 30 Oct 2008 | 5:29 am Ex-Fannie Mae chief wishes he said "no" more often: report (Reuters)
Source: Yahoo! News: Business | 30 Oct 2008 | 5:29 am The Undead HolidaySales of which products are booming even as overall consumer spending is going bust? Sarah Palin masks and candy corn.Consumer confidence may be at record lows, but sales of Halloween-related goods are expected to rise 14 percent this year, to $5.77 billion, according to a National Retail Federation survey conducted by BIGresearch. That's especially impressive for a holiday that finds itself wedged between punishing back-to-school sales results earlier this fall and a chilling holiday shopping season in which some see sales growth as low as 1.5 percent. Kathy Grannis, a spokeswoman for the National Retail Federation, explains that Halloween provides a cheap, fun diversion from the pressures of real life, as well as being one of the few holidays where people are encouraged to indulge themselves rather than others. "The notion of doom and gloom can really only last so long in consumers' minds before they go out and invest in some fun," Grannis says. Fun—and junk food, which has been one of the major winners in our nation's growing enthusiasm for the year's spookiest holiday. Sales of candy for Halloween have skyrocketed in recent years to around $1.6 billion annually. Since 2003, the amount of money people said they expected to spend on Halloween candy has increased 42 percent to $20.39 per capita, according to the N.R.F. If you think the increased candy spend is primarily kid-oriented, think again. While Halloween in the 1950s and 1960s was very focused around children, it's now returning to its historical roots as a raucous adult affair that functions as an opportunity to temporarily suspend order, violate borders, and escape from reality. According to the N.R.F.'s Halloween Consumer Intentions and Actions Survey, more people over the age of 18 plan to celebrate Halloween this year than last, up to about 65 percent from 59 percent last year. That means it's the increasingly stressed-out grown-ups who are chowing down on those fun-sized Snickers bars on and around October 31. And it's certainly not second-graders who have made Sarah Palin getups one of the hottest-selling costumes this Halloween. Bob Thompson, a professor of popular culture at the S.I. Newhouse School of Public Communications at Syracuse University, says that free-for-all celebrations like Halloween function as release and catharsis for a society under stress. "Lately, Halloween has been being reclaimed as a holiday celebrated by adults," says Thompson. "This year, October 31 falls at really a perfect time to just let loose in one of these 'flip everything over' settings—the election, the economic crisis, the war in Iraq—holidays have become loci of negotiation for these kinds of things."Related Links A Beef With the Rabbis A Beef With the Rabbis Just Don't Wear a Dick Fuld Mask Source: Portfolio.com: Top 5 | 30 Oct 2008 | 4:00 am Pair re-elected on to Airport boardChairman Tony Frankham and board member Keith Turner, who were both seeking re-election, have been voted back on to the board of Auckland International Airport Limited. The pair both received more than 96 per cent of shareholder...Source: New Zealand Herald - Business | 30 Oct 2008 | 4:00 am Precious Metals ParadoxThe best place to find a one-ounce Canadian Maple Leaf, U.S. Golden Eagle, or a 100-ounce gold or silver bar is on eBay, but buyers had better be prepared to pay premiums of $3 to $9 per ounce over the Comex spot market price. Traditional brick-and-mortar dealers are all but sold out.How tight is this investor market? Silver Recycling recently converted part of its Philadelphia refinery from recycling industrial scrap silver to producing 100-ounce silver bars that it retails over the internet. The company is negotiating for lucrative high-volume contracts to supply several leading dealers with silver bars. With this kind of investor demand for gold and silver coins and bars, why have metal prices been falling? It's the financial crisis, baby. Hedge funds and high-net-worth investors are liquidating highly leveraged precious metals derivatives contracts, options, and gold index notes to raise the capital to meet margin calls on their tanking stock and bond investments. These liquidations are skewing gold's traditional performance as a safe haven during periods of economic anxiety, said Jeffrey Christian, managing director at the CPM Group, a metals consultancy. "Gold and silver give investors a source of liquidity at this time of crisis," he said. "What we're seeing now is a gigantic run for cash. At the same time, there is massive investor demand for gold in the physical market. We're not seeing short-selling or long liquidation on the Comex. Whatever is happening is in the physical market." With increasingly tight supplies of "physical" gold and silver—coins and bars, as opposed to futures and other "paper" investments—investors have turned to exchange-traded gold and silver funds to satisfy their precious-metals appetites. E.T.F.'s trade like a security and are backed by bullion, 400-ounce gold and silver "good delivery" bars. Indeed, silver E.T.F.'s account for the lion's share of the 100-ounce bars held on an allocated basis in London, Christian said. And E.T.F. investors aren't selling. The big money is in gold, led by SPDR Gold Shares that trade on the New York Stock Exchange Arca as GLD, as well as on the Singapore Stock Exchange, Tokyo Stock Exchange, and Stock Exchange of Hong Kong. "An E.T.F. buys exposure to gold, and the price is right," Christian said. "People three to four years ago bought them at $300, $400 an ounce and made a lot of money." Gold was trading today for more than $750 an ounce. "Investors who bought a year ago, when the price was $780, are a little underwater," Christian added. "Those who bought two years ago are in pig heaven." In the past four weeks, the GLD exchange-traded fund experienced its best growth rate since its 2004 launch, adding 150 metric tons of metal to its holdings to lift the total to 750 tons, worth more than $17 billion on October 28. Holdings of the Comex Gold Trust, an E.T.F. called iShares, were 64.52 metric tons worth $1.5 billion, with silver iShares holdings of 6,751 metric tons worth just under $2 billion. "The selling is a short-term panic move," said George Milling-Stanley, manager of gold market analysis at the World Gold Council, which created GLD shares. "Because of the radical reappraisal of risk, people are looking very hard at counterparties. We're seeing a wave of investor interest across the globe in gold." As this scenario plays out, gold prices could fall another $100 as investors adjust their portfolios. But once the dust settles later this year, gold could rebound to more than $1,000 an ounce, some experts said. "The past three to four weeks doesn't change any of the long-term reasons in play for the past seven years," Milling-Stanley said. Metals supplies are adequate now, but the credit crunch coupled with investor demand can change that quickly, Christian said. A dearth of financing is leading mining companies to postpone opening new mines and expanding existing ones. The impact of supply shortfalls on prices and strategies will come into play in the longer term. "A lot of people seem to be lining up at the starting gate. When the selling stops, gold goes through the roof because physical demand is so strong," Christian said. "Then it becomes a storehouse of value."Related Links The New Gold Diggers Malaise Per Gallon Malaise Per Gallon Source: Portfolio.com: Top 5 | 30 Oct 2008 | 4:00 am Business confidence plunges in OctoberBusiness confidence fell heavily in October with a net 42 per cent of respondents to the National Bank Business Outlook survey expecting business conditions to deteriorate in the coming year. "That's a massive 44 point turnaround...Source: New Zealand Herald - Business | 30 Oct 2008 | 3:35 am Fed cuts interest rates to 1%The US Federal Reserve cut interest rates by half a percentage point to 1 per cent and announced that it would lend $30bn each to central banks in Brazil, Mexico, South Korea and Singapore to lend on to local banksSource: FT.com - US homepage | 30 Oct 2008 | 2:32 am Groups seek credit card debt forgivenessRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Oct 2008 | 1:47 am Drug Distributor Works To Move Customers To Generics, Mail OrderWhat better way to strike a chord with consumers than to learn what makes them tick?Source: Investor's Business Daily: BUSINESS | 30 Oct 2008 | 12:49 am Business Briefs - WednesdayKraft, Kellogg top on price hikes. The giant food makers posted higher earnings due largely to price hikes charged to consumers. Kraft KFT, the...Source: Investor's Business Daily: BUSINESS | 30 Oct 2008 | 12:49 am In Brief - WednesdayNewmont Mining (NEM), a gold producer, said its Q3 EPS fell 24.6% to 43 cents, beating views by a penny. Revenue dipped to $1.4 bil, below views....Source: Investor's Business Daily: BUSINESS | 30 Oct 2008 | 12:49 am After The Close - WednesdayORACLE (ORCL), the business software maker, will buy RuleBurst, the parent of Haley Limited, which makes policy modeling and automation software,...Source: Investor's Business Daily: BUSINESS | 30 Oct 2008 | 12:49 am Trends & Innovations - WednesdayDoctors often prescribe placebosSource: Investor's Business Daily: BUSINESS | 30 Oct 2008 | 12:49 am BT fined after 'fixing' MoD callsBT pays the Ministry of Defence £1.3m in compensation after its staff met call-answering targets by phoning each other.Source: BBC News | Business | World Edition | 30 Oct 2008 | 12:27 am Moscow agrees bailout for struggling oligarchsOleg Deripaska, the Russian oligarch, became the first beneficiary of a Kremlin-backed rescue package when his company, UC Rusal, secured a $4.5 billion loan.$Source: Latest Business News from Times Online | 30 Oct 2008 | 12:12 am Talk of rate cuts acknowledges dire outlookSerious, credible people are starting to predict astonishingly low interest rates for Britain. Jonathan Loynes, of Capital Economics, says that base rate will fall from the current 4.5 per cent to just 1 per cent. Stuart Thomson, of Resolution Asset Management, was yesterday plumping for 0.5 per cent.Source: Latest Business News from Times Online | 30 Oct 2008 | 12:00 am European Union doubles crisis fund as more look for helpThe European Union crisis fund available to member states and selected neighbours is to be more than doubled to €25 billion (£19.7 billion) as signs emerge that Hungary may not be the only nation to need an emergency cash injection.Source: Latest Business News from Times Online | 30 Oct 2008 | 12:00 am Fears mount in Japan over complex yen productsTraders in Tokyo have given warning that about $90 billion ($£55billion) of complex foreign exchange products, sold mainly to Japanese households and institutions, are on the brink of falling “like a house of cards”.Source: Latest Business News from Times Online | 30 Oct 2008 | 12:00 am Inflation counts for nothing as Fed cuts ratesThe once unthinkable prospect of zero interest rates moved closer to reality yesterday. The US Federal Reserve announced an historic reduction in borrowing costs, pushing American interest rates to a level below which they have not been since the mid-1950s.Source: Latest Business News from Times Online | 30 Oct 2008 | 12:00 am Standard Life blames poor investment returns as it cuts with-profits payoutsStandard Life, Britain's fifth-largest insurer, has cut payouts on its with- profits savings policies by up to 13 per cent and imposed heavy exit penalties, blaming poor investment conditions since August.Source: Latest Business News from Times Online | 30 Oct 2008 | 12:00 am Cullen to discuss financial crisis with RiceFinance Minister Michael Cullen has revealed he is set to speak with US Secretary of State Condoleezza Rice later this morning ahead of a meeting of the world's most powerful economies to discuss the financial crisis. Speaking...Source: New Zealand Herald - Business | 30 Oct 2008 | 12:00 am US weighs mortgage guarantee planThe US government and federal regulators are zeroing in on a proposal to provide mortgage guarantees to lenders that agree to restructure home loans to ensure affordable monthly paymentsSource: FT.com - US homepage | 29 Oct 2008 | 11:38 pm Pension fund gap hits $100bnUS companies will need to inject more than $100bn into their pension funds to cover market losses, putting them in a cash squeeze at a time when it is difficult to raise moneySource: FT.com - US homepage | 29 Oct 2008 | 11:32 pm Auckland Airport feels effects of global slowdownAuckland International Airport Ltd is being affected by the global financial crisis and expects full-year profit will be at the bottom of a predicted range. This was the message to shareholders at the annual meeting today. Chairman...Source: New Zealand Herald - Business | 29 Oct 2008 | 11:30 pm Beatles come together with Rock BandBeatles music will be used in the popular Rock Band video game, marking the first big digital foray by the Fab Four, according to people familiar with the plansSource: FT.com - US homepage | 29 Oct 2008 | 11:11 pm NZ stocks: Modest rise on local marketThe New Zealand sharemarket has made small early gains this morning helped up by a 4c lift in Telecom shares to $2.25. The New Zealand market opened after the Federal Reserve had cut United States interest rates half a percentage...Source: New Zealand Herald - Business | 29 Oct 2008 | 11:00 pm US approves Delta-Northwest mergerDelta Air Lines' proposed merger with Northwest Airlines won approval from US antitrust officials, clearing the companies to create the world's largest carrierSource: FT.com - US homepage | 29 Oct 2008 | 10:23 pm Ackman proposes Target spin off property company (AP)AP - A major shareholder in Target Corp. pitched a plan to Wall Street on Wednesday that would spin off the discount retailer's real estate holdings as a separate entity as a way to increase the value of the company and its shares.Source: Yahoo! News: Business | 29 Oct 2008 | 10:11 pm Cullen's Gekko barb for business audienceWith the mood of the New Zealand corporate boardroom squarely in favour of a change of government, Finance Minister Michael Cullen faced what could have been a hostile audience at an Auckland business breakfast this morning. At...Source: New Zealand Herald - Business | 29 Oct 2008 | 10:00 pm VIX Index of U.S. Stock Option Prices Advances to 69.96Source: Bloomberg - All Podcasts | 29 Oct 2008 | 9:48 pm Samex's Keenan Sees ETFs as Opportunity Amidst Falling StocksSource: Bloomberg - All Podcasts | 29 Oct 2008 | 9:45 pm First Solar Saves The Solar Power Sector (FSLR, SPWRA, STP, LDK, CSIQ, SOLR, ESLR)
The company announced a 525 megawatt long-term module supply pact with Sorgenia Solar for solar power plants in Italy and extended pacts with existing customers allowing for an additional $800 million spread from 2009 to 2013. First Solar shares were floating around the break-even mark in the after-hours session before its guidance and before its supply pact announcement. But now shares are up 10% at $127.50. Below is the rest of the data: As you will see below, this is causing a major rally in almost all of the other solar power stocks:
The company did note gross margins declining sequentially but said that 2008 net sales would be $1.22 billion to $1.24 billion. It also said that 2009 net sales would be $2.0 billion to $2.1 billion with operating margins of 33% to 34%. First Call has 2008 targets at $1.21 billion and has 2009 targets at $2.13 billion. As long as an analyst doesn't kill the stock with overly strong demands or a downgrade in the morning, then this ought to be enough to help many of the other solar suppliers regain some lost ground. HERE WAS THE ORIGINAL STORY BEFORE GUIDANCE...... First Solar, Inc. (NASDAQ: FSLR) posted earnings of $1.20 per share on $348.69 million in revenue. First Call had estimates for this quarter of $1.01 EPS and $339.29 million in revenue. If the company offers guidance in its conference call, its next quarter's estimates are $1.23 EPS and $409.27 million in revenue, and Fiscal DEC-2009 estimates are $6.71 EPS and $2.13 billion in revenue. If the company's targets are met for 2008 at $3.68 EPS and $1.21 billion in revenue, First Solar will trade at 32.7-times earnings and 8.1-times revenues. So this is still trading at much higher multiples than many growth stocks, but it is no longer at levels which cannot be sustained. Shares closed up almost 1.5% at $115.75 and shares are floating up and down between positive and negative right after the earnings.
Jon C. Ogg Source: 24/7 Wall St. | 29 Oct 2008 | 9:43 pm Pitino Says His Pride Was `Hurt' With Boston CelticsSource: Bloomberg - All Podcasts | 29 Oct 2008 | 9:41 pm US hospitals may have to buy back $8bn in debtUS hospitals may be forced to buy back debt as a result of turmoil in the credit markets, adding to their burdens just as a weakening economy is draining resourcesSource: FT.com - US homepage | 29 Oct 2008 | 9:27 pm James Grant Says Greenspan Is `Cheerleader for Imprudence'Source: Bloomberg - All Podcasts | 29 Oct 2008 | 9:18 pm RDQ's DeQuadros Doesn't See Basis-Point Cut as Helpful(Correct)Source: Bloomberg - All Podcasts | 29 Oct 2008 | 9:10 pm Aiming at a Distant TargetBill Ackman has one word for Target shareholders, just one word: land.There may be a great future in Target's land investments, but it's not clear that the retailer has any plans to capitalize on it right now, at least not with Ackman's plan. Ackman's Pershing Square Capital owns nearly 10 percent of Target's shares and the activist investor insists that he has had a "wonderful dialog" with Target's management about how to boost shareholder value. Ackman believes that shareholders aren't recognizing the sizable real estate portfolio Target holds—it owns most of its buildings and the land they sit on. So Pershing Square hunkered down with UBS and Sullivan & Cromwell to hatch a plan. Even in this dark and dismal market, how can Target unlock some of that value? Their solution: A tax-free spinoff of a company that owns the land that Target's boxes and distribution centers sit on. The spinoff would collect rent, which would be tied to inflation, from Target, and become its outsourced facilities management provider. Ackman calls it a T.I.P. R.E.I.T., for Target inflation-protected real estate investment trust. Ackman presented his plan Wednesday afternoon to an auditorium of investors and media with a 163-page PowerPoint presentation. If it sounds novel, it's because it is. According to Ackman, it's never been done before. It would create the largest public R.E.I.T. out there, and it would have the distinction of being the only one free of debt, at least at first. And according to Pershing's analysis, what's now a $40 Target stock would be worth a combined $70 in a post-spinoff world (Target at $32 and the T.I.P. R.E.I.T. at $38). Shareholders welcomed the idea. Target shares advanced 6 percent Wednesday afternoon, after climbing 18 percent on Tuesday after Ackman announced plans to make his announcement. But in Minneapolis, where Target is based, the idea is generating less enthusiasm. The company issued a statement outlining its concerns over Ackman's proposal, although it said it has not yet reached a conclusion regarding the idea's merits. Ackman has a response for every one of Target's concerns. The likely downgrade in Target's debt that would occur when the real estate is spun off? It would eventually be offset by improved cash flows, which would be used to deliver the balance sheet and return Target's debt to an "A" credit rating before it would even need financing. Target is also worried about having rent tied to inflation, but Ackman believes the company's treasury department would be savvy enough to hedge against that with T.I.P.'s. Indeed, for every concern raised by Target, Ackman has a swift and simple-sounding response. In fact, Ackman's idea makes perfect sense, but in an almost "too good to be true" way. Is now really the time for a major retailer to undertake a costly and novel transaction that may not end up with the intended effects that Ackman proposes? We are in a recession, after all, and Target's got enough to worry about at the mercy of scrimping consumers. And certainly plenty of investors are well aware of Target's real estate portfolio today. Who's to say they would value it better if the company splits in two? Of course, one could also take a page from the Obama campaign handbook and argue that when things are this bad, it's time for Target to try something new. That argument might not go so well, however, as Target chief executive Robert Ulrich is a McCain supporter. Related Links His Fault Wall Street's Next Crisis Adding Up Blackstone's EOP Divestitures Source: Portfolio.com: Top 5 | 29 Oct 2008 | 9:00 pm Gladiator v Boadicea: No contest?Helen Clark and John Key are now locked in a fight to the political death in which there can only be one winner. The Herald 's Mood of the Boardroom survey shows just over 90 per cent of the chief executives surveyed clearly believe...Source: New Zealand Herald - Business | 29 Oct 2008 | 9:00 pm Goldman partners' reduced rewardsCompany's ritual of announcing its new class continued despite economic downturn, however, the new partners will not benefit as they have in the pastSource: FT.com - US homepage | 29 Oct 2008 | 8:37 pm Pimco's Clarida Sees `Rough Sledding' for U.S. EconomySource: Bloomberg - All Podcasts | 29 Oct 2008 | 8:18 pm Davis quits as MF Global chiefThe chief executive of one of the world's biggest financial derivatives brokerages bowed to investor demands to resign, capping a disastrous year for the company during which it has lost more than 90% of its valueSource: FT.com - US homepage | 29 Oct 2008 | 8:12 pm We can still win, says McCain teamAdvisers to John McCain spelled out why they think he can still win Tuesday's election, even as senior Republicans prepared for civil war within the party if Barack Obama becomes presidentSource: FT.com - US homepage | 29 Oct 2008 | 7:29 pm Back to Ozzie & Harriet interest ratesSource: L.A. Times - Business | 29 Oct 2008 | 6:48 pm Dresdner's Saporta Says Fiscal Stimulus Plan Comes `Too Late'Source: Bloomberg - All Podcasts | 29 Oct 2008 | 6:37 pm J.D. Power's Libby Sees Possible U.S. Auto Maker BankruptcySource: Bloomberg - All Podcasts | 29 Oct 2008 | 6:14 pm Grim Christmas for Chinese toymakersA drop in exports is hurting Chinese toy manufacturers, who rely on U.S. demand. Next week, China will help out by subsidizing exporters. Scott Tong looks into the health of the toy industry in China.Source: Marketplace | 29 Oct 2008 | 5:33 pm What a temptress cheaper gas isWhen gas prices increased, so did noble things like public transportation ridership and sales of fuel-efficient cars. Now that gas prices are sliding, have bad habits returned? Senior Business Correspondent Bob Moon reports.Source: Marketplace | 29 Oct 2008 | 5:33 pm For GM, the bad news keeps on comingMerger talks with Chrysler are "progressing," but GM's troubles are not at bay. The automaker announced another global sales drop and reportedly plans to cut back on new car development. Renita Jablonski asks if that's wise.Source: Marketplace | 29 Oct 2008 | 5:33 pm Private equity in a credit freezeHuge corporations like The Carlyle Group and Blackstone got into the private equity business when credit was easy and cheap. But now that the credit market is drying up, will the private equity game go with it? Stacey Vanek-Smith finds out.Source: Marketplace | 29 Oct 2008 | 5:33 pm Fed's new role must not be permanentAn important point to keep in mind, says commentator David Frum, is that the government's new role in banking, insurance and other industries is for emergency purposes. Ultimately, that role needs to go away.Source: Marketplace | 29 Oct 2008 | 5:32 pm States are in dire financial straitsThe line for federal bailout money keeps growing. Now it's state and city governments that need a hand. State budget deficits are huge coast-to-coast. Steve Henn has the story.Source: Marketplace | 29 Oct 2008 | 5:32 pm 1% might not be the final cutNow that the Fed's cut the interest rate to 1%, can it cut it any further? Will it? How low can the interest rate go? Kai Ryssdal turns to Harvard economist Kenneth Rogoff for his perspective.Source: Marketplace | 29 Oct 2008 | 5:32 pm Forex volatility could lead to P&G price risesProcter and Gamble, the world's largest consumer goods company, said it was facing 'unprecedented' foreign exchange volatility in emerging markets and would have to respond with further price increasesSource: FT.com - US homepage | 29 Oct 2008 | 5:32 pm Will latest rate cut help the economy?The Federal Reserve cut the interest rate to 1% in an effort to encourage lending and stimulate the economy. Will it work? What about inflation? Washington Bureau Chief John Dimsdale reports.Source: Marketplace | 29 Oct 2008 | 5:32 pm Blog: China cuts interest rates; Fed is up nextSource: L.A. Times - Business | 29 Oct 2008 | 5:23 pm Meltdown Reaches Muni Bonds at Polls: CommentarySource: Bloomberg - All Podcasts | 29 Oct 2008 | 4:00 pm Johnson & Johnson Cut by JP Morgan on Projected LossesSource: Bloomberg - All Podcasts | 29 Oct 2008 | 3:01 pm Cutting Through the SlumpThe Federal Reserve has cut interest rates by a half point, saying that "the pace of economic activity has appeared to slow markedly." But what the stock market thinks is beside 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." Hit the Panic Button Shock, Not Much Awe More Ways to Fix Libor Source: Portfolio.com: Top 5 | 29 Oct 2008 | 12:30 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
|
