Higher costs hit Hitachi profits

Japanese electronics firm Hitachi reports a quarterly loss, blaming sluggish demand, the strong yen and rising costs.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 12:14 pm

7.5 million homeowners 'underwater'

At least 7.5 million Americans owe more on their mortgages than their homes are currently worth, according to a real estate research firm's report released Friday.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 12:13 pm

Rate cut from Japan, Barclays seeks funding

LONDON/TOKYO (Reuters) - Japan cut interest rates for the first time in seven years on Friday, expecting severe stress in the global economy to persist, while UK banking giant Barclays said it was raising $12 billion in capital.

Source: Reuters: Business News | 31 Oct 2008 | 12:13 pm

Rate cut from Japan, Barclays seeks funding (Reuters)

Reuters - Japan cut interest rates for the first time in seven years on Friday, expecting severe stress in the global economy to persist, while UK banking giant Barclays said it was raising $12 billion in capital.

Source: Yahoo! News: Business | 31 Oct 2008 | 12:13 pm

UPDATE 1-Advanced Medical posts net profit vs loss

posted a net profit versus a year-ago loss, even as
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:11 pm

UPDATE 2-UCB raises 2008 core profit target on one-off

BRUSSELS, Oct 31 (Reuters) - Belgian pharmaceutical group
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:09 pm

Oil sinks towards $63, set for record monthly slide (Reuters)

Reuters - Oil fell more than $2 to below $64 a barrel on Friday and in line with other markets was on track to post its biggest monthly fall yet.

Source: Yahoo! News: Business | 31 Oct 2008 | 12:05 pm

Oil sinks towards $63, set for record monthly slide

LONDON (Reuters) - Oil fell more than $2 to below $64 a barrel on Friday and in line with other markets was on track to post its biggest monthly fall yet.

Source: Reuters: Business News | 31 Oct 2008 | 12:05 pm

Rowan Declares 10 Cent Quarterly Dividend

HOUSTON, Oct. 31 /PRNewswire-FirstCall/ -- Rowan Companies, Inc. (NYSE: RDC) announced today that its Board of Directors has declared a cash dividend of 10 per share of Common...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

Greenhill Management to Speak at Keefe, Bruyette & Woods Securities Brokerage & Market Structure Conference

NEW YORK, Oct. 31 /PRNewswire-FirstCall/ -- Greenhill & Co., Inc. (NYSE: GHL), a leading independent investment bank, announced today that Robert F. Greenhill, Chairman, and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

Leadership from the Cleveland-to-Pittsburgh Mega-Region Join to Create Tech Belt Initiative to Reinvigorate the Economy

CLEVELAND, Oct. 31 /PRNewswire/ -- The Tech Belt Initiative is an economic development strategy designed to reinvigorate the Cleveland-to-Pittsburgh region (Cleveland,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

White Mountains Reports Adjusted Book Value per Share of $405

HAMILTON, Bermuda, Oct. 31 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) reported an adjusted book value per share of $405 at September 30,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

Alaska Airlines Inaugurates Anchorage-Maui Service

SEATTLE, Oct. 31 /PRNewswire-FirstCall/ -- Alaska Airlines today inaugurates seasonal service between Anchorage and Kahului, Hawaii, on the island of Maui. The flights,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

NRHA Breaks Ground on Virginia's Largest Green-Built Townhome Development

NORFOLK, Va., Oct. 31 /PRNewswire-USNewswire/ -- Norfolk Redevelopment and Housing Authority (NRHA) will break ground Friday, October 31 for the largest green-built townhome...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

Air T Reports Unaudited Second Quarter Results

MAIDEN, N.C., Oct. 31 /PRNewswire-FirstCall/ -- Air T, Inc. (Nasdaq: AIRT) today reported consolidated net earnings of $1,322,000 ($0.55 per diluted share) for fiscal...
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

Friendly Hills Bank Continues Growth Pattern

WHITTIER, Calif., Oct. 31 /PRNewswire-FirstCall/ -- Friendly Hills Bank (OTC Bulletin Board: FHLB) reported results for the third quarter of 2008, its eighth full quarter
Source: Infocious RSS raw feed - channel BNewsBusiness | 31 Oct 2008 | 12:00 pm

Blacks may sell surfwear as losses grow 55%

Blacks Leisure, the outdoor clothing retailer, reported 55 per cent rise in losses during the first half of this year as a consistently poor performance from its surfing stores continued to weigh on the group.
Source: Latest Business News from Times Online | 31 Oct 2008 | 11:58 am

Oil falls

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 11:57 am

U.S. weighs mortgage plan

The government is expected to announce soon that it will devote up to $50 billion to directly address the source of the financial crisis: bad mortgages and millions of homeowners at risk of foreclosure.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 11:54 am

Eurozone inflation falls to 3.2%

Inflation across the 15 nations that share the euro fell to 3.2% last month, data shows, increasing the chances of a cut in interest rates.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 11:51 am

'Broke the buck' fund returns $26 billion

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 11:48 am

Burger King profit misses view, keeps outlook

NEW YORK (Reuters) - Burger King Holdings Inc posted a lower-than-expected quarterly profit on Friday as margins were pressured by high commodity costs and other expenses, but stood by its full-year outlook.

Source: Reuters: Business News | 31 Oct 2008 | 11:48 am

BSkyB customers pass 9m amid profits rise

BSkyB added another 87,000 pay-TV customers, its highest growth during its first quarter for five years, bringing its total customer numbers to more than nine million.
Source: Latest Business News from Times Online | 31 Oct 2008 | 11:45 am

Stock futures lower before data, GM shares fall

NEW YORK (Reuters) - Stock index futures fell on Friday, with the Dow headed for its worst month in more than two decades, as investors braced for economic data and news that the General Motors-Chrysler merger is on hold.

Source: Reuters: Business News | 31 Oct 2008 | 11:44 am

Stock futures lower before data, GM shares fall (Reuters)

Reuters - Stock index futures fell on Friday, with the Dow headed for its worst month in more than two decades, as investors braced for economic data and news that the General Motors-Chrysler merger is on hold.

Source: Yahoo! News: Business | 31 Oct 2008 | 11:44 am

Treasury: No aid for GM, Chrysler

A merger between U.S. automakers General Motors Corp. and Chrysler is likely on hold until after next week's presidential election, as the government said it will not provide the automakers with aid, the Detroit Free Press reported Friday.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 11:42 am

October set for a gloomy end

U.S. stock futures tumbled early Friday, as investors braced for a wave of economic readings, eyed drops in overseas markets, and prepared to wrap up one of the worst months ever for the markets.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 11:42 am

World shares head for worst month ever

LONDON (Reuters) - Shares in Asia and Europe fell on Friday, heading for their worst month ever, while the low-yielding yen surged as Japan's interest rate cut failed to erase concerns about the deteriorating global economic outlook.

Source: Reuters: Business News | 31 Oct 2008 | 11:41 am

Friends drops Lombard sale as offers disappoint

Friends Provident, the life insurer, is abandoning the sale of Lombard, its wealth management arm, nine months after putting the business on the market.
Source: Latest Business News from Times Online | 31 Oct 2008 | 11:35 am

Intel says financial crisis could hurt business (Reuters)

Reuters - The recent financial crisis could have a negative impact on Intel Corp's business, results of operations and financial condition, the technology bellwether said in a regulatory filing.
Source: Yahoo! News: Business | 31 Oct 2008 | 11:35 am

Intel says financial crisis could hurt business

(Reuters) - The recent financial crisis could have a negative impact on Intel Corp's business, results of operations and financial condition, the technology bellwether said in a regulatory filing.

Source: Reuters: Business News | 31 Oct 2008 | 11:35 am

Toyota plans to export vehicles from US

Toyota Motor is to export thousands of US-built sport utility vehicles and pickup trucks to the Middle East and Latin America to relieve a glut of unsold models at its North American dealerships
Source: FT.com - US homepage | 31 Oct 2008 | 11:34 am

GMAC may become bank, eyes massive debt overhaul

NEW YORK (Reuters) - GMAC LLC, the money-losing auto finance and mortgage provider, on Thursday confirmed it was seeking to become a bank holding company, and said it plans to overhaul and slash its debt load, barely four months after completing a $60 billion refinancing package.

Source: Reuters: Business News | 31 Oct 2008 | 11:32 am

Eurozone inflation tumbles to 3.2%

Eurozone inflation dropped from 3.6% in September to 3.2% in October and could reach 1% by mid-2009, but unemployment across the 15-country region may start rising soon, official figures indicated
Source: FT.com - US homepage | 31 Oct 2008 | 11:32 am

Yahoo, Google may walk away from search deal: report

SAN FRANCISCO (Reuters) - Google Inc and Yahoo Inc could announce a decision to walk away from their search deal by the middle of next week, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

Source: Reuters: Business News | 31 Oct 2008 | 11:28 am

Currencies: Yen, dollar gain as risk aversion returns

LONDON (MarketWatch) -- The Japanese yen was back in the driver's seat Friday, gaining ground against most major currencies as risk appetite faded in the wake of a smaller-than-expected rate cut by the Bank of Japan.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 11:23 am

London Markets: Shares in London slump after BT Group warns

London shares fell on Friday, bringing an end to the best winning streak of a month of turmoil, with BT leading decliners after issuing a profit warning.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 11:18 am

AEP's third-quarter net profit falls 9% on unfavorable weather

American Electric Power’s third-quarter net income falls 9% on unfavorable weather and increased fuel costs, as the power giant signals plans to beef up its pocket book in the face of a weaker economy.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 11:16 am

Europe Markets: Europe shares fall after three days of gains as BT, L'Oreal warn

European shares fell on Friday, bringing an end to three sessions of gains, with warnings from U.K. telecommunications firm BT Group and cosmetics giant L’Oreal pacing the decline.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 11:13 am

Robert Peston

Hedge funds' Volkswagen losses pile up
Source: BBC News | Business | World Edition | 31 Oct 2008 | 11:09 am

Intel says financial crisis will bite

The recent financial crisis could have a negative impact on Intel's business, results of operations and financial condition, the technology bellwether has warned
Source: FT.com - US homepage | 31 Oct 2008 | 11:06 am

Barclays turns to Middle East for cash boost

The bank is raising up to £7.3bn of additional capital – including £5.8bn from investors in Qatar and Abu Dhabi – in a move that will allow it to boost its balance sheet without turning to the British state for cash
Source: FT.com - US homepage | 31 Oct 2008 | 11:06 am

Barclays secures Middle East cash

British bank Barclays unveils a proposal to raise up to £7.3bn, most of which will come from Middle Eastern investors.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 11:06 am

George Osborne attacks Brown's 'spending splurge'

George Osborne draw battle lines for the next general election today by warning that the Government's “spending splurge” risked further entrenching the economic mess which he claimed a decade of Labour policies had brought about.
Source: Latest Business News from Times Online | 31 Oct 2008 | 11:06 am

Early Bird Analyst Upgrades (RATE, BBY, GOL, HIW, IPCS, JAH, PPO)

These are some of the early upgrades and positive calls we are seeing from Wall Street research analysts this Friday morning with about two and a half hours until the open:

• Bankrate (RATE) Raised to Buy at Jefferies.
• Best Buy (BBY) Raised to Neutral at JPMorgan.
• GOL Linhas (GOL) Raised to Neutral at Goldman Sachs.
• Highwoods (HIW) Raised to Outperform at Baird.
• iPCS (IPCS) Raised to Buy at Jefferies.
• Jarden (JAH) Raised to Buy at Goldman Sachs.
• Polypore International (PPO) Raised to Outperform at Baird.

Jon C. Ogg
October 31, 2008

Source: 24/7 Wall St. | 31 Oct 2008 | 11:04 am

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 11:01 am

Early Bird Analyst Downgrades (DO, ESV, HBC, MORN, PPO, PWAV, RDC, TDW, TROW)

These are some of the early analyst downgrades we are seeing from Wall Street this Friday morning with about two and a half hours until the open:

• Diamond Offshore (DO) Cut to Hold at Jefferies.
• Ensco (ESV) Cut to Hold at Jefferies.
• HSBC (HBC) Cut to Sell at Goldman Sachs.
• Morningstar (MORN) Cut to Market Perform at KBW.
• Polypore International (PPO) Cut to Hold at BB&T.
• Powerwave (PWAV) Cut to Neutral at Baird.
• Rowan Companies (RDC) Cut to Hold at Jefferies.
• Tidewater (TDW) Cut to Hold at Jefferies.
• T. Rowe Price (TROW) Cut to Market Perform at KBW.

Jon C. Ogg
October 31, 2008

Source: 24/7 Wall St. | 31 Oct 2008 | 11:00 am

Centrica looks to raise £2.2bn

British Gas owner Centrica launches a £2.2bn rights issue to fund plans to buy a 25% stake in British Energy.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 10:56 am

Valley pearls

Venture capitalists in Silicon Valley ride out the downturn
Source: BBC News | Business | World Edition | 31 Oct 2008 | 10:55 am

Indications: U.S. stock futures drop ahead of data wave; EA slumps

The volatile action in U.S. stocks looked set to continue Friday, with stock futures falling ahead of another round of likely gloomy economic data and as video games maker Electronic Arts cut its profit forecast.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 10:52 am

This CEO takes no prisoners

It's hard to pin down exactly when Neal Blue decided to start building weapons. It was probably in the early 1980s, around the time he bought much of Telluride, Colo., but before he began mining uranium and sometime after he gave up growing cocoa and bananas in the Nicaraguan jungle.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 10:50 am

U.S. banks owe billions in pay, pensions to executives: report

(Reuters) - Troubled financial giants getting cash infusions from the U.S. Federal Reserve owe their executives more than $40 billion for past year's pay and pensions as of the end of 2007, the Wall Street Journal said in an analysis.

Source: Reuters: Business News | 31 Oct 2008 | 10:36 am

U.S. banks owe billions in pay, pensions to executives: report (Reuters)

Reuters - Troubled financial giants getting cash infusions from the U.S. Federal Reserve owe their executives more than $40 billion for past year's pay and pensions as of the end of 2007, the Wall Street Journal said in an analysis.

Source: Yahoo! News: Business | 31 Oct 2008 | 10:36 am

Commodities Corner: Happy days for gasoline consumers and retailers alike

Consumers tend to notice that gasoline prices drop much more slowly than they rise, but that's not necessarily price gouging at play -- at least not on the retail end.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 10:31 am

Nissan profits slump on high yen

Nissan reports a 41% fall in half-year profits after it is hit by the high value of the yen and the "severe decline" in the US car market.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 10:30 am

The Economy Crumbles Even Video Games Go To Hell

In a recession, people are supposed to be able to buy soap, hamburgers, beer, and video games. This downturn may be worse than most. Electronic Arts (ERTS), posted a net loss of $310 million and said it would lay-off 6% of its workers.

It is stunning to imagine that the maker of iconic games like "Madden NFL" and "Spore" could be doing poorly, but consumer spending may be worse than even the federal government numbers show.

Now that earnings season is fairly far along, what people will buy and what they will part with is becoming more clear. Oil companies did well. Consumers are still buying gas. So are airlines. Someone is using a lot of oil.

Procter & Gamble (PG) did well. The toothpaste and deodorant franchises are safe. AT&T (T) earnings exceeded expectations. The cell phone business is still booming. Ford (F) and GM (GM) are expected to do poorly. That speaks for itself.

The EA results may give a tiny hint about where the economy is going, at least in the short term. Consumers will buy the necessities. Once it gets beyond items people need for their daily lives, they are cutting back. Even if playing football on a TV for six hours a day is fun.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Oct 2008 | 10:27 am

AIG: Repaying Uncle Sam

American International Group is paying down its pricey $85 billion loan from Uncle Sam with cheaper funding from Uncle Sam.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 10:24 am

Barclays (BCS) Shows Why Taxpayer Bailouts Are Junk

Barclays (BCS) turned down cash from the UK government. Unlike most large US banks, it did not want to trade independence for money. Companies such as Goldman Sachs (GS), JP Morgan (JPM), and Citigroup (C) will now have the Treasury looking through their underwear drawers for excessive executive compensation, accounting practices, and ski trips.

Barclays did the sensible thing. It went out and raised money on its own. According to MarketWatch, the bank "struck a deal to raise up to 7.3 billion pounds ($11.9 billion) in fresh capital as the U.K. lender signaled its preference for cash from Middle Eastern royal families to the British government."

The excuse that US financial firms might give for not going the private capital route is that Barclays is doing better than they are. But, last November, the UK bank wrote down $2.7 billion in subprime paper. Last May it lost nearly $3 billion.

The stock market is usually not a bad test of how companies in the same industry are doing relative to one another. So far this year, Barclays shares are down 65%, which is more that those of JP Morgan (JPM), Citigroup (C), or Bank of America (BAC).

Barclays took a risk, perhaps a large one, by insisting upon raising private capital. That revives the question of what would have happened if the Treasury and Congress had not stepped in to provide tens of billion of dollars to US banks. Wells Fargo (WFC) did not ask for public capital for its purchase of Wachovia (WB). That is a useful bit of data.

The Barclays announcement indicates that the American banking system may have made it on its own. Some institutions would have been bought by others, probably at fire sales prices. That has already happened to companies like NCC (NCC). But, the valuations of the firms when they traded near their lows were probably attractive enough to bring in private equity and sovereign fund capital.

The bailout may not have been needed at all.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Oct 2008 | 10:08 am

The economy: Why it feels so bad

Are your fears and concerns justified? We examine and explain 5 key measures of the economy.

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 10:08 am

Euro and pound down on the dollar

The pound falls to $1.621 and the euro falls to $1.272 following the release of better-than-expected US economic data.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 10:06 am

Procure your piece of the bailout

Lucrative government contracts are up for grabs as the Treasury Department scrambles for vendors to fulfill the provisions of the bailout bill passed earlier this month. Will small businesses get a piece of the contracting action?

Source: Business and financial news - CNNMoney.com | 31 Oct 2008 | 10:06 am

Auto aid pleas mount; Treasury says no GM talks

DETROIT/WASHINGTON (Reuters) - Six U.S. governors and a group of chief executives on Thursday urged the Bush administration in a letter to aid the embattled auto industry while the White House rebuffed a request for direct support of a merger between GM and Chrysler.

Source: Reuters: Business News | 31 Oct 2008 | 9:58 am

BT shares slump on profit warning

BT issues a profit warning, saying it would miss its earnings for the second quarter, sending its shares down around 20%.
Source: BBC News | Business | World Edition | 31 Oct 2008 | 9:58 am

Barclays Seeks $11.8 Billion Injection

Barclays plans to raise $11.8 billion by selling shares to Abu Dhabi and Qatar to meet Britains new capital requirements for banks without the governments help.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 9:57 am

The Justice Department Kicks Yahoo! To The Curb

Source: 24/7 Wall St. | 31 Oct 2008 | 9:47 am

Barclays to raise up to $11.9 billion

Barclays on Friday struck a deal to raise up to 7.3 billion pounds ($11.9 billion) in fresh capital as the U.K. lender signaled its preference for cash from Middle Eastern royal families to the British government.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 9:45 am

Calling All Shareholders

Source: Latest Business News from Times Online | 31 Oct 2008 | 9:40 am

British Telecom sale: 3

Source: Latest Business News from Times Online | 31 Oct 2008 | 9:39 am

British Telecom 130p shares expected to raise ?3,700m

Source: Latest Business News from Times Online | 31 Oct 2008 | 9:39 am

GM (GM) Rolls Snake Eyes

So much for the plan that GM (GM) would get loot from the Federal Reserve to buy Chrysler. Sources say that the administration will no not put cash into an auto rescue deal. That is a slap at Michigan congressmen and the governor of that state, all of whom wrote form letters to Bernanke and Paulson asking for help. Perhaps, if they had not all used the same signature, it would have looked better.

No one knows what the government has been thinking, but it may be that it reasons a bailout of auto companies will begin an avalanche of requests from every corner of the world of enterprise from airlines to the National Hockey League. By keeping the assistance primarily to banks and brokerages, those handing out the $700 billion approved by Congress have something to hide behind. Or the current people in The White House may want to wash their hands of the matter. According to Reuters, "This puts any merger of the struggling automakers on hold until after the U.S. presidential election."

There is another and perhaps more basic reason for not giving car companies cash. While the banking problems are a systemic and reach into every corner of the world's financial infrastructure, problems in the auto sector are parochial and belong to Detroit. While car companies in Europe and Japan may be having their own troubles, none is on the brink of insolvency.

The message to GM is fairly plain. You got yourself into the mess, now get yourself out. Toyota (TM) or VW would be more than happy to buy your assets, fire your management, and close many of your operations. In the business schools they call it "creative destruction".

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Oct 2008 | 9:22 am

Centrica to raise £2.2bn for British Energy deal

Centrica, the owner of British Gas, is launching a deeply discounted rights issue to raise £2.2 billion to help fund its acquisition of a share in British Energy, the nuclear generator, from its new French owner EDF.
Source: Latest Business News from Times Online | 31 Oct 2008 | 9:16 am

Financial hawks

Gulf sovereign wealth funds look to a global future
Source: BBC News | Business | World Edition | 31 Oct 2008 | 8:53 am

Asia Markets: Nikkei slides 5% despite rate cut, region mixed

Japanese markets slumped Friday after the central bank lowered the interest rates for the first time in seven years after a split vote in a board meeting, but the extent of the reduction fell short of the market expectations.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 8:53 am

BT shares plunge to new low on profit warning

Shares in BT today fell to their lowest level since it floated 24 years ago after the telecoms group gave warning that profits would fall below expectations and the head of its global services division had resigned.
Source: Latest Business News from Times Online | 31 Oct 2008 | 8:46 am

Small investors offer hope for Japan market gloom (Reuters)

Reuters - Stocks in Japan fell to their lowest in decades this week, but seasoned punter Heiichiro Kase is far from discouraged.

Source: Yahoo! News: Business | 31 Oct 2008 | 8:30 am

BT shares sink after group warns on second-quarter profit

Shares of BT Group Plc fell 19% Friday after the U.K.’s largest telecommunications company warned that second-quarter profit would miss expectations and lowered its outlook for the year.

Source: MarketWatch.com - Top Stories | 31 Oct 2008 | 8:28 am

Barclays rejects government funding, secures £5.8bn from Qatar and Abu Dhabi

Barclays will raise £7.3 billion from investors after securing a £5.8 billion cash injection from investors in Qatar and Abu Dhabi, in exchange for a stake of over 30 per cent in the British lender.
Source: Latest Business News from Times Online | 31 Oct 2008 | 8:17 am

Media Digest 10/21/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, the economy contracted in the third quarter as consumer spending dropped sharply.

Reuters writes that Fidelity Magellan Fund bought shares in big banks in September including Bank of America (BAC) and JP Morgan (JPM).

Reuters reports that a merger between GM (GM) and Chrysler may die because the administration will not provide funding.

Reuters reports that GMAC may convert to a commercial bank to overhaul its huge debt.

Reuters writes that Lehman investors are suing management for misleading them.

Reuters reports that a legal decision may cut down the use of "business method" patents.

Reuters reports that Japan's central bank cut rates and Europe counterparts are likely to do the same.

The Wall Street Journal writes that financial firms getting federal aid own executives an accumulated $40 billion in compensation as of the end of 2007.

The Wall Street Journal reports that Barclays (BCS) is close to getting $10 billion from Middle East investors.

The Wall Street Journal reports that Toyota (TM) will begin to export US-made vehicles.

The Wall Street Journal writes that Chrysler faces massive job cuts in a deal to merge with GM.

The Wall Street Journal reports that several governors urged the administration to provide financial aid to car companies.

The Wall Street Journal reports that Electronic Arts (ERTS) cut forecasts and 6% of its work force.

The Wall Street Journal reports that the odds of a Yahoo! (YHOO) deal with Google (GOOG) are dropping.

The Wall Street Journal reports that Sprint (S) will hold onto its NexTel division after failing to get an acceptable bid.

The Wall Street Journal reports that executives at financial firms are in talks to cap their compensation.

The Wall Street Journal reports that turnaround executives are worried that the downturn maybe worse than expected potentially curbing client abilities to pay fees.

The Wall Street Journal reports that Ford (F) will rehire workers to build its new pick-up.

The Wall Street Journal reports that Sun (JAVA) posted a lost of $1.68 billion on a goodwill write-down.

The Wall Street Journal reports that net income at Nintendo rose on strong Wii sales.

The Wall Street Journal reports that more medical groups advised against the danger of GDK's (GSK) Avandia drug.

The New York Times reports that a plan to cut costs of homeowner mortgages may anger those who are not aided and encourage them to default.

The New York Times reports that Ford officials claim they can survive a downturn without a merger.

The New York Times reports that Russia's cash reserves have dropped which may hurt its economy.

The New York Times reports that AIG (AIG) will now be eligible for $144 billion in aid, which may not be enough,

Bloomberg reports that Nissan cut sales forecasts.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Oct 2008 | 7:48 am

Australian Stocks: Market closes marginally higher

MELBOURNE - The Australian share market closed marginally higher as cautious investors took profits ahead of another expected interest rate cut next week. At the 1615 AEDT close, the benchmark S&P/ASX200 index was 16.9 points,...
Source: New Zealand Herald - Business | 31 Oct 2008 | 7:22 am

Asia Markets 10/31/2008 (HBC)(LFC)

Markets in Asia fell sharply.

The Nikkei dropped 5% to 8,577.

The Hang Seng fell 5.2% to 13,586. HSBC (HBC) and China Life (LFC) both dropped sharply.

The Shanghai Composite was down 2% to 1,729.

Data from Reuters.

Douglas A. McIntyre

Source: 24/7 Wall St. | 31 Oct 2008 | 7:15 am

Motorola posts $397-million loss; plans to slash 3,000 jobs

The company cites the continued troubles of its cellphone division in reporting the third-quarter loss. Motorola posts big loss, plans...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Banks, consumer advocates urge U.S. to allow credit card debt forgiveness

Financial institutions believe they can lose less by forgiving part of the debt than by seeing the consumer walk away entirely. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Struggling IndyMac borrowers may be in the dark about offer to lower their mortgage payments

The FDIC, which is running the bank, says more than half of those who were sent letters giving them the chance to rework the terms of their loans haven't responded.

The Federal Deposit Insurance Corp.'s program to lower loan payments for struggling borrowers with mortgages from IndyMac Bank has been lauded by consumer advocates and government leaders as a model of foreclosure prevention.

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

CVS slashes generic drug costs, escalates price war

Using the products as loss leaders, the drugstore giant will sell 90-day supplies of more than 400 medications for $9.99 and offer discounts for cash-paying patients at its in-store medical clinics. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Exxon Mobil posts biggest U.S. quarterly profit ever

The company rides sky-high oil prices to shatter its own record set in the previous quarter. Its third-quarter earnings of $14.83 billion are up 58% from a year earlier. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Stocks open higher as investors test the wind

A report on the nation's third-quarter GDP isn't as bad as expected, while strong earnings reports fuel optimism on Wall Street. But American Express announces 7,000 layoffs. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Exxon Mobil posts biggest U.S. quarterly profit ever

The company rides sky-high oil prices to shatter its own record set in the previous quarter. Its third-quarter earnings of $14.83 billion are up 58% from a year earlier.

Riding record oil prices in the third quarter, Exxon Mobil Corp. on Thursday posted the biggest quarterly profit ever for a U.S. company: $14.83 billion, or about $112,000 a minute.

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

R U ready to txt for D8s? Don't LOL.

New cellphone services are springing up to help singles exchange text messages and find each other on a handset's digital map. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Motorola posts $397-million loss; plans to slash 3,000 jobs

The company cites the continued troubles of its cellphone division in reporting the third-quarter loss.

Motorola posts big loss, plans to cut 3,000 jobs

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

CVS slashes generic drug costs, escalates price war

Using the products as loss leaders, the drugstore giant will sell 90-day supplies of more than 400 medications for $9.99 and offer discounts for cash-paying patients at its in-store medical clinics.

One of the nation's largest drugstore chains ratcheted up a price war Thursday, offering deep discounts on generic prescriptions amid national concern about the spiraling cost of healthcare.

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

Airlines cutting fares for holiday travel

When it comes to holiday travel plans, good things may come to those who waited.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Relaxed U.S. visa rules could bring surge in tourism

California could be poised to see a big influx of South Korean visitors.

Jong Min Kang's South Korean relatives are exactly the kind of travelers American hospitality and retail businesses are yearning for during this time of financial despair -- free-spending foreigners on vacation.

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

Relaxed U.S. visa rules could bring surge in tourism

California could be poised to see a big influx of South Korean visitors. Jong Min Kang's South Korean relatives...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

Stocks stage late rally despite dour economic report

The Dow rises 189.73 points to 9,180.69 as major indexes gain during the last 15 minutes of trading. In a mirror...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 31 Oct 2008 | 7:00 am

R U ready to txt for D8s? Don't LOL.

New cellphone services are springing up to help singles exchange text messages and find each other on a handset's digital map.

The modern dating scene has come to this: a text-messaging service that hits random female subscribers in Los Angeles with such messages as "Hello to all the beautyful ladys."

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

In troubled times, Ford plans to hitch a ride with GM

It will let the larger automaker take the lead in exploring options for help from the government as well as possible concessions from the United Auto Workers union.

With the U.S. auto industry melting down, General Motors Corp. executives are burning up phone lines to Washington seeking billions in financial aid to help cement a merger with Chrysler. Ford Motor Co., meanwhile, has developed an intriguing strategy: Sit back and watch.

Source: L.A. Times - Business | 31 Oct 2008 | 7:00 am

NZ stocks: Market holds up as Asian markets ease

The New Zealand sharemarket held up well today as Asian markets started easing. Wall Street was up overnight, which helped get the New Zealand market off to a good start. The benchmark NZSX-50 index closed up 58.042 points,...
Source: New Zealand Herald - Business | 31 Oct 2008 | 6:25 am

Currency: Dollar settles under US60c

The New Zealand dollar twice tried to push back above US60c for the first time in a week, but both times was quickly sent packing. By 5pm today the kiwi was buying US58.80c from US59.25c yesterday, after having peaked around US60.30c...
Source: New Zealand Herald - Business | 31 Oct 2008 | 5:43 am

Economic data point to the start of a recession

Gross domestic product shrinks 0.3% in the three months ended September as consumer spending drops 3.1%. Economists foresee a slump lasting through the first half of 2009.

The nation's economy has shifted into reverse amid a staggering drop in consumer spending, the government reported. But that's hardly news to furniture-store owner Chris Horn of Monterey Park.

Source: L.A. Times - Business | 31 Oct 2008 | 5:32 am

'Buck-breaking' fund returns initial $26 billion (AP)

AP - A money-market mutual fund that "broke the buck" amid a rush of orders to pull out cash has begun returning an initial $26 billion to investors who had been unable to access their money for more than a month.
Source: Yahoo! News: Business | 31 Oct 2008 | 5:14 am

Bank of Japan cuts interest rates to 0.3%

The Bank of Japan cut interest rates for the first time in seven years, lowering its key rate to 0.3% from 0.5% amid rising concerns about Japan's growth outlook
Source: FT.com - US homepage | 31 Oct 2008 | 5:11 am

Acura TL: A high-tech, high-class sports sedan

One of the best things about moving to Los Angeles from North Carolina was discovering the outrageous cadre of TV weathermen with vaguely meteorological-sounding names: Dallas Raines, Johnny Mountain, Fritz Coleman.

Source: L.A. Times - Business | 31 Oct 2008 | 5:01 am

Sky City says revenue up despite difficult times

Sky City says its revenues for the first quarter of the 2009 financial year were up 3 per cent on a year earlier, excluding international business and cinemas. Chief executive Nigel Morrison told shareholders at the company's annual...
Source: New Zealand Herald - Business | 31 Oct 2008 | 3:30 am

Melamine widespread in China's animal feed - contamination crisis deepens

BEIJING - The industrial chemical melamine is commonly added to animal feed in China to make it appear higher in protein, state media reported, in what appeared to be a tacit admission by the government that contamination is widespread...
Source: New Zealand Herald - Business | 31 Oct 2008 | 3:00 am

Media : RadioLive's Lush a fish out of water

Auckland breakfast radio ratings results should be the make or break for the likeably alternative MediaWorks RadioLive breakfast host Marcus Lush. But they probably won't. The radio station seems to be happy to sit back in a role...
Source: New Zealand Herald - Business | 31 Oct 2008 | 2:00 am

Monster US wireless carrier deal could go ahead

WASHINGTON - The Justice Department effectively gave Verizon Wireless the go-ahead to buy Alltel in a $28 billion deal that would create the U.S.'s largest wireless carrier. Verizon Wireless, a joint venture between Verizon...
Source: New Zealand Herald - Business | 31 Oct 2008 | 1:00 am

A Prairie Fire Of Layoffs (MOT)(LM)(AB)(GS)(TWX)(GCI)(YHOO)(GM)(AXP)(ERTS)(WHR)

Source: 24/7 Wall St. | 31 Oct 2008 | 12:00 am

Westpac posts 6pc profit rise

Westpac New Zealand expects to draw on the funding facilities the Reserve Bank has implemented in response to the credit crisis, but stresses that is "not a sign of weakness". Westpac, the third major Australian-owned bank to report...
Source: New Zealand Herald - Business | 31 Oct 2008 | 12:00 am

Wall Street 'made rod for own back'

Wall Street unwittingly created one of the catalysts for the collapse of Bear Stearns, Lehman Brothers and AIG by backing new bankruptcy rules that were aimed at insulating banks from the failure of a big client, lawyers and bankers say
Source: FT.com - US homepage | 30 Oct 2008 | 11:34 pm

Iron ore miners face price cut

Iron ore miners face the prospect of the first price cut in seven years as steel production in China and elsewhere plunges amid the global downturn
Source: FT.com - US homepage | 30 Oct 2008 | 11:34 pm

AIG raises funds from new Fed facility

AIG has raised funds from a new Federal Reserve lending facility to repay part of a $123bn Fed loan that is keeping the stricken US insurer alive, in a move that could deepen the political backlash over its use of taxpayers' money
Source: FT.com - US homepage | 30 Oct 2008 | 11:21 pm

Consumer data raise recession fears in US

Fears the US has moved into recession gathered pace as data showed that a sharp cutback in consumer spending in the third quarter drove the economy to shrink at an annualised rate of 0.3 per cent, its weakest performance in seven years
Source: FT.com - US homepage | 30 Oct 2008 | 11:16 pm

Treasury approves first companies in deposit insurance scheme

Kiwibank, Rabobank, TSB and SBS Bank are among the first financial institutions to be approved by officials to be part of the Government's new deposit guarantee scheme. Treasury has released its first list of those banks and others...
Source: New Zealand Herald - Business | 30 Oct 2008 | 11:14 pm

States urge Washington aid for carmakers

Six US state governors have added their voices to calls for the federal government to come to the aid of the beleaguered Detroit motor industry, even as evidence mounts that a deal to fold Chrysler into GM would cost tens of thousands of jobs
Source: FT.com - US homepage | 30 Oct 2008 | 11:03 pm

NZ Shares: Solid local start as global equities rally

The New Zealand sharemarket started with a solid lift, after stocks rallied around the world on optimism that interest rate cuts by several central banks will ease a looming global recession. Fletcher Building was up 21c early...
Source: New Zealand Herald - Business | 30 Oct 2008 | 10:30 pm

Buffett Gets Put In Burlington Northern (BRK-A, BRK-B, BNI)

Source: 24/7 Wall St. | 30 Oct 2008 | 9:26 pm

Harry Clark Says Stocks Still Too Volatile, Favors ETFs

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 9:18 pm

Samex's Hauke Sees ETFs as Opportunity as Stocks Fall (Correct)

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 9:12 pm

For investors, Exxon was a port in the storm

Source: L.A. Times - Business | 30 Oct 2008 | 9:08 pm

Davidson Sees Threat to Dubai Economy From Credit Crisis

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 9:06 pm

This pirate's life is no yo-ho-ho

The Strait of Malacca, between Singapore and Indonesia, is one of the most dangerous waterways in the world. Why? Pirates. And these are no Johnny Depps. Kelly McEvers interviews a modern-day Blackbeard in Indonesia.
Source: Marketplace | 30 Oct 2008 | 9:03 pm

Musicians Ask McCain, Palin to Stop Playing Their Songs

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 9:01 pm

VIX Index of U.S. Stock Option Prices Retreats 10.1% to 62.90

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 8:56 pm

NYU's Altman Sees Long, Severe 18-Month Recession

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 8:33 pm

The End of Business Process Patents

Not only were Wall Street's risk-hedging strategies and other so-called business-process ideas woefully unsuccessful, a federal appeals court has ruled that they're not really property that can be patented.

Rejecting a landmark 1998 case that allowed financial firms and others to patent ideas and processes in addition to things and machines, the U.S. Court of Appeals for the Federal Circuit, in Washington, voted 9-3 that patents should be limited to "physical objects or substances" and not be awarded to "abstractions" like a bank's risk-hedging strategy.

The court upheld a decision by the Board of Patent Appeals and Inferences to deny a patent for an approach to hedging energy costs. The court concluded that the section of patent law allowing people and companies to patent industrial processes doesn't apply to abstract ideas..

In its 132-page decision, the court said a patent can cover a "process that transforms a particular article to a specified different state or thing by applying a fundamental principle" but cannot cover the principle itself.

Patents must pass a " machine-or-transformation test" to be valid, the court said. In the case it was reviewing, In Re Bilski, the court concluded that "purported transformations or manipulations simply of public or private legal obligations or relationships, business risks, or other such abstractions cannot meet the test because they are not physical objects or substances, and they are not representative of physical objects or substances."

The decision will have its greatest effect on the financial-services industry, which has used similar business-process patents to protect all manner of proprietary trading, hedging, and fund-management strategies.

Technology companies have also used such patents widely, to cover everything from types of software to checkout processes on websites.

It's not immediately clear what will happen to the hundreds of business process and similar patents that have been granted since another federal court accepted the idea in 1998. In that case, State Street Bank v. Signature Financial, a court found that Signature's method for managing mutual funds was patentable.Related Links
Reforming the Patent System
Are More Patents Really a Good Thing?
McCain to YouTube: Don't Tread On Me


Source: Portfolio.com: Top 5 | 30 Oct 2008 | 8:30 pm

Woolner Scrutinizes McCain's Warning on Voter Fraud

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 8:08 pm

Portales's Peabody Says Regulators `Playing The Role of God'

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 7:31 pm

Moody's Zandi Says Financial Crisis Has 'Passed the Apex'

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 6:21 pm

Netflix on demand through your TiVo

Heads up, couch potatoes. Netflix and TiVo are joining forces to have movies and TV episodes instantly streamed from Netflix to the television sets of TiVo subscribers. Stacey Vanek-Smith has more.
Source: Marketplace | 30 Oct 2008 | 4:19 pm

This financial crisis is getting spooky

The sense of dread in the financial world is no treat, but it'll be a main theme among the tricks played during tomorrow's Halloween festivities. Mitchell Hartman reports on people spooked by the economic crisis who are dressing the part.
Source: Marketplace | 30 Oct 2008 | 4:18 pm

IMF stepping in to boost central banks

Iceland and Hungary have turned to the International Monetary Fund for financial aid. Kai Ryssdal talks with Rhagu Rajan, an economics professor and former IMF chief economist, about the Fund's new, more public role.
Source: Marketplace | 30 Oct 2008 | 4:18 pm

Defaults threaten public transit systems

DC's Metro transit system could default on a complicated deal and wind up owing foreign bankers $43 million. AIG guaranteed the deal and others like it, leaving at least 31 public services facing defaults too. Steve Henn reports.
Source: Marketplace | 30 Oct 2008 | 4:18 pm

The once-almighty dollar rises again

The U.S. economy is shrinking, but the buck is making a comeback -- in global transactions, at least. Banks are hoarding dollars, so U.S. currency is regaining its allure. Jeremy Hobson has more.
Source: Marketplace | 30 Oct 2008 | 4:18 pm

GDP shows U.S. economy shrinking

In the third quarter, American GDP shrank by 0.3% -- less than analysts expected, but it still showed the U.S. economy shrinking. And, as Sarah Gardner reports, the worst may be yet to come.
Source: Marketplace | 30 Oct 2008 | 4:18 pm

Grant Hill Joins Campaign to Prevent MRSA Infections

Source: Bloomberg - All Podcasts | 30 Oct 2008 | 3:18 pm

Thousands throng to opening of huge London mall (AP)

AP - It took Ella Jenkins and two teenage pals less than 15 minutes to give a thumbs up to London's biggest mall, which opened Thursday despite the gloomy economic climate that threatens to dampen vital Christmas sales.

Source: Yahoo! News: Business | 30 Oct 2008 | 2:19 pm

Off the Mark and in the Black

Why didn't we think of this?

Changes in accounting rules allowed Deutsche Bank to avoid a loss for the third quarter.

The new rules enabled the bank to reduce its write-downs by nearly $1 billion, giving it a net profit of 435 million euros, or $573 million. Analysts had widely expected a loss.

The bank made the impact of the new accounting abundantly clear:

"Deutsche Bank reclassified certain assets, for which no active market existed in the third quarter and which management intends to hold for the foreseeable future, out of trading assets and assets available for sale and into loans. If these reclassifications had not been made, the income statement for the quarter would have included negative fair value movements relating to the reclassified assets of 845 million euros."

Of course, many in the United States have thought of changing the accounting rules. From Steve Schwarzman to members of Congress, many have been quick to blame mark-to-market accounting for the credit woes.  

Steve Goldstein on MarketWatch says,"Lest the Europeans come in for a barrage of criticism, it's worth noting that many want the Financial Accounting Standards Board and the Securities and Exchange Commission to adopt a similar stance."

Is mark to market really the culprit? Would changing the role simply to ease the volatility of the market really get at the heart of the problem?

As Floyd Norris of the New York Times wrote earlier this month:

"You would think that, having been proven to be so wrong about these assets—that is how they got into this mess—the banks would be a little humble about insisting that their valuations now should be relied upon even if no one is willing to pay the prices they calculate."

Felix Salmon looked at some of the arguments and had this to say:

"The best thing I can say about suspending mark-to-market accounting is that the downside is slightly more limited than some people might think. I still can't see any upside."

Related Links
Bringing Back Regulation's Good Name
The S.E.C. Inspector Calls
Mr. Paulson Goes to China


Source: Portfolio.com: Top 5 | 30 Oct 2008 | 12:30 pm