Circuit City to shut 155 U.S. stores to preserve cash

Struggling electronics retailer Circuit City Stores Inc. says it’s shutting 155 U.S. underperforming stores, reducing future store openings and aggressively renegotiating certain leases to help preserve cash after its liquidity deteriorated and its vendors tightened the company’s payment terms.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 2:48 pm

Better goods, capex plans to aid Wal-Mart: JP Morgan (Reuters)

Reuters - Wal-Mart would benefit from its improved store base and merchandise, new capital allocation plans and reduced margin drains from its international unit, said J.P. Morgan Securities, which upgraded the world's largest retailer to "overweight" from "neutral."
Source: Yahoo! News: Business | 3 Nov 2008 | 2:47 pm

Stocks find their way higher

Stocks turned higher after a mixed open Monday morning, as investors geared up for economic news later in the day and the presidential election.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 2:45 pm

Metals Stocks: Gold rises 1% on speculation prices have bottomed

Gold futures rise for the first time in three sessions, adding 1% on speculation that the precious metal’s prices, after suffering their biggest monthly loss in October, may have bottomed.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 2:45 pm

Stocks are mixed ahead of economic data

NEW YORK -- Wall Street is starting November on a cautious note, with stocks narrowly mixed after last week's surge and ahead of readings on manufacturing activity, construction spending and auto sales.

Source: L.A. Times - Business | 3 Nov 2008 | 2:42 pm

Worst Corporate Press Release Of The Day: Dana (DAN)

Source: 24/7 Wall St. | 3 Nov 2008 | 2:41 pm

Goodyear quarterly profit falls

DETROIT (Reuters) - Goodyear Tire & Rubber Co posted a steep drop in quarterly profit on Monday, pressured by weaker demand from vehicle manufacturers and the replacement market in North America and Europe, although results beat expectations and shares rose 14 percent.

Source: Reuters: Business News | 3 Nov 2008 | 2:38 pm

Hartford Financial says capital is sufficient

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 2:37 pm

Stocks edge lower at open ahead of data (Reuters)

Reuters - Stocks were slightly lower at the open on Monday as caution ahead of key economic data offset signs of more thawing in credit markets.

Source: Yahoo! News: Business | 3 Nov 2008 | 2:37 pm

Stocks edge lower at open ahead of data

NEW YORK (Reuters) - Stocks were slightly lower at the open on Monday as caution ahead of key economic data offset signs of more thawing in credit markets.

Source: Reuters: Business News | 3 Nov 2008 | 2:37 pm

Circuit City to close 20% of stores

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 2:32 pm

Circuit City closing 155 stores

RICHMOND, Va. -- Circuit City Stores Inc. said Monday it is pulling the plug on about 20 percent of its U.S. stores in an effort to return the nation's No. 2 consumer electronics retailer to profitability.

Source: L.A. Times - Business | 3 Nov 2008 | 2:32 pm

Financial Stocks: Thousands of banks reportedly set to apply for government cash

As many as 1,800 publicly traded financial institutions could seek assistance from the government under the Treasury Department’s $700 billion rescue plan for troubled banks, according to a published report.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 2:30 pm

Tiscali in sale talks with BSkyB

Internet provider Tiscali says it is in talks with broadcast giant BSkyB about the sale of its UK business.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 2:28 pm

KKR postpones flotation as asset values plummet

Kohlberg Kravis Roberts (KKR), the US private equity investor, has postponed its flotation until 2009 following losses suffered by its Amsterdam-listed fund.
Source: Latest Business News from Times Online | 3 Nov 2008 | 2:27 pm

Circuit City closing 155 stores, seeking options (Reuters)

Reuters - Circuit City Stores Inc is closing 155 stores and considering all options to restructure its business as the consumer electronics retailer struggles with a deteriorating liquidity position and tighter credit conditions from vendors.

Source: Yahoo! News: Business | 3 Nov 2008 | 2:26 pm

Circuit City closing 155 stores, seeking options

NEW YORK (Reuters) - Circuit City Stores Inc is closing 155 stores and considering all options to restructure its business as the consumer electronics retailer struggles with a deteriorating liquidity position and tighter credit conditions from vendors.

Source: Reuters: Business News | 3 Nov 2008 | 2:26 pm

Sierra Pacific: More Might Be Less (SRP)

Back in September, Sierra Pacific Resources (NYSE:SRP) changed the names of both its utility companies to NV Energy. That didn't do much to help its third-quarter earnings, which the company reported before the market opened this morning. Sierra reported EPS of $0.64 and revenues of $1.19 billion, compared with analysts estimates of $0.63 EPS and revenues of $1.27 billion.

The company's president and CEO said Sierra is "pleased that our financial and operating results remain strong despite our slower rate of growth." This slower growth is about to come to a full stop. Estimates for the fourth quarter show EPS of just $0.02 on revenues that are some $400 million lower than this quarter.

The company's long-term debt totals about $4.8 billion and it's market cap is les than $2 billion. In July Sierra issued $500 million in new senior debt to pay down its revolver. Customers are also using less electricity, which is not welcome news to a company that attributed its earnings to rate increases.

Sierra's share price closed at $8.29 on Friday, down about 53% from its 52-week high.

Paul Ausick
November 3, 2008

Source: 24/7 Wall St. | 3 Nov 2008 | 2:19 pm

Sysco profit trails market estimates

(Reuters) - Food distributor Sysco Corp posted first-quarter profit that trailed market estimates on higher expenses and food cost inflation.

Source: Reuters: Business News | 3 Nov 2008 | 2:18 pm

Bank rate falls to pre-Lehman collapse levels

The cost of borrowing dollars in London today fell to its lowest level since the collapse of Lehman Brothers almost two months ago, in a sign that concerted action by the world's central banks to free up international money markets is, at last, starting to work.
Source: Latest Business News from Times Online | 3 Nov 2008 | 2:16 pm

Indications: U.S. stock futures nudge lower after strong week

U.S. stock futures trend lower as investors braced for another week of rocky data and earnings and as the race for the White House reaches a crescendo on the eve of Election Day.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 2:14 pm

Brazilian banks announce merger

Two of Brazil's biggest banks, Itau and Unibanco, announce a merger that will create the biggest financial group in South America.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 2:06 pm

U.S. crude futures drop $2 on demand concerns

NEW YORK (Reuters) - U.S. crude futures fell $2 on Monday on concerns that demand will continue to be curbed by a slowing global economy.

Source: Reuters: Business News | 3 Nov 2008 | 2:02 pm

European, U.S. banks suffer, recession a reality

LONDON (Reuters) - Profits evaporated at leading banks on Monday and authorities worldwide pressed on with efforts to temper a recession that policymakers said had become reality for much of the globe.

Source: Reuters: Business News | 3 Nov 2008 | 2:01 pm

Wall St volatile as money market strains ease

Wall Street was braced for a volatile start to the month as investors weighed further easing of strains in money markets with the expected release of more downbeat economic data
Source: FT.com - US homepage | 3 Nov 2008 | 2:00 pm

NewsWatch: U.S. stock futures nudge higher after strong week

U.S. stock futures nudged forward on Monday as investors braced for another week of rocky data and earnings as the race for the White House comes to a close.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 2:00 pm

Nicor: Shares Could Head South Today (GAS)

Source: 24/7 Wall St. | 3 Nov 2008 | 1:59 pm

Oil hovering around $67 a barrel

Crude oil prices are hovering around $67 a barrel, on expectations that demand will continue to slow as the world economy contracts.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 1:58 pm

Oil dips as market awaits election

The price of oil was lower Monday, after trading higher overnight, as wary investors pulled back one day before the U.S. presidential election.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 1:57 pm

Merger creates LatAm financial giant

Shares in Brazil's second largest private-sector bank Itau surged 15% after it agreed to take over smaller rival Unibanco to create a Latin American financial services behemoth
Source: FT.com - US homepage | 3 Nov 2008 | 1:56 pm

Movers & Shakers: Monday's biggest gaining and declining stocks

Among the companies whose shares are expected to see active trade in Monday's session are Alvarion, Boeing, Central Virginia Bankshares, Ceragon, CuraGen, DryShips, Midwest Banc, Research in Motion, Sony, VeraSun and Wal-Mart.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 1:55 pm

Hartford CEO says company 'well capitalized'

Hartford Financial Services Group says that its capital levels are strong, despite concerns about the company's capitalization last week.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 1:53 pm

Virgin Media wins three-year debt delay

Virgin Media has won approval from its banks to postpone repayments on its £4.3 billion debt burden until 2012.
Source: Latest Business News from Times Online | 3 Nov 2008 | 1:51 pm

Fed's Lacker wary on inflation, sees U.S. recovery

JERUSALEM (Reuters) - The Federal Reserve must not forget about inflation as it battles recession, or leave interest rates too low for too long next year, policy-maker Jeffrey Lacker said on Monday.

Source: Reuters: Business News | 3 Nov 2008 | 1:48 pm

EC launches legal action against Ireland's debt

The European Commission is to launch disciplinary action against Ireland for allowing a sharp deterioration in its public finances, Joaquin Almunia, the EU Economic Affairs Commissioner, said today.
Source: Latest Business News from Times Online | 3 Nov 2008 | 1:42 pm

European, U.S. banks suffer, recession a reality (Reuters)

Reuters - Profits evaporated at leading banks on Monday and authorities worldwide pressed on with efforts to temper a recession that policymakers said had become reality for much of the globe.

Source: Yahoo! News: Business | 3 Nov 2008 | 1:41 pm

Before the Bell: CORRECT: The Hartford, Boeing, Rockwell Collins in view

U.S. stock futures nudged forward on Monday as investors braced for another week of rocky data and earnings as the race for the White House comes to a close. Monthly auto sales are due for release later in the session.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 1:37 pm

Why it's (finally) time to buy stocks

You didn't hear this uttered very often, but over the past decade and a half, through bull and bear market alike, the value proposition for stocks could be stated succinctly: There's nothing to buy.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 1:36 pm

Futures Movers: Oil and other energy futures fall in early trade

Crude-oil futures trade lower early Monday after gaining nearly 6% last week, as traders continue to worry about the impact of a global economic slowdown on energy demand.

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 1:35 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 3 Nov 2008 | 1:31 pm

WTO eyes global credit boost

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 1:30 pm

Barbarians Must Wait

In April 2007, Henry Kravis declared that private equity was in "a golden age." Soon afterward, of course, the buyout business entered an ice age.

So it's hardly surprising that the initial public offering of the private equity titan Kohlberg Kravis Roberts & Co. has been pushed back a year. What is a little surprising is that it has not been given up entirely.

K.K.R. Private Equity Investors, an affiliate of the firm that trades in Amsterdam, was to have merged with its parent and begin trading on the New York Stock Exchange this year. Under that deal, shareholders would have held 21 percent of the merged entity, with K.K.R. executives holding the rest.

Today the affiliate announced that the merger would not happen until next year.

The delay was announced as K.K.R. Private Equity, or K.P.E., released results that showed a net investment loss of $27.2 million for its third quarter. Its net asset value fell to $18.85 per share at the end of September, from $24.36 at end of 2007.

"As the decline in K.P.E.'s quarterly net asset value evidences, some of our investments faced reduced valuations during the third quarter as a result of the extraordinary turbulence in the global capital markets," George Roberts, a co-founder of the private equity firm, said in a statement.

After much hoopla in 2007, the public debuts of private equity firms Blackstone Group and Fortress Investment Group quickly soured for investors. This year alone, shares of Blackstone are down 57 percent, while Fortress shares are off 68 percent.

Yet the K.K.R. public offering was always intended to be a little different, to access the markets as the firm transitions to becoming more of a diversified money manager and less of a buyout shop. There would have been no huge cash-outs for Kravis and Roberts and other insiders.

Investor demand for shares of private equity firms can't be very high at the moment. Shares of Blackstone are down 57 percent since January, while shares of Fortress are off 68 percent.

But staying private may be the only option for years to come. The K.P.E. affiliate went public in Amsterdam in May 2006 at $25 per share. It now trades for less than $5.



Related Links
Blackstone: The First of Many Private Equity IPOs
Another Buyout Bust
Blackstone Falls Below its Offering Price


Source: Portfolio.com: Top 5 | 3 Nov 2008 | 1:30 pm

Are tax credits welfare?

Democratic presidential contender Barack Obama says his economic plan would offer a tax break to 95% of working Americans.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 1:29 pm

Statoil Hydro profits cut in half

Norwegian oil and gas company Statoil Hydro sees quarterly profits fall by more than a half because of higher taxes.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 1:18 pm

US must lead on downturn - Brown

Gordon Brown urges the next US president to show leadership on global financial reforms and and not retreat into protectionism.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 1:07 pm

Panasonic eyeing Sanyo

Panasonic Corp. may buy Sanyo Electric Co. and will soon enter negotiations with major shareholders, news reports said Saturday.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 1:07 pm

Stocks climb on hopes of recovery

European stocks rose on Monday, echoing rises in Asia, after several governments intervened to boost their economies.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 12:46 pm

Boost your portfolio by clearing the air

Has your latest brokerage statement got you down? Maybe it's time to try something completely different: a $96 billion market built entirely on the certifiable absence of a colorless, odorless gas.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 12:44 pm

UPDATE 1-JP Morgan downgrades Animal Health, MWI Veterinary

Nov 3 (Reuters) - J.P. Morgan Securities downgraded animal
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 12:40 pm

UPDATE 1-News Corp sells stake in Polish broadcaster Puls

WARSAW, Nov 3 (Reuters) - News Corp has agreed to
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 12:38 pm

Early Bird Analyst Upgrades (ACOR, BIIB, BKC, CHRT, OSG, SLB, TSO, WMT)

These are some of the top pre-market upgrades from analysts which we have seen in the early hours this Monday morning:

• Acorda Therapeutics (ACOR) Raised to Outperform at Baird.
• Biogen Idec (BIIB) Raised to Outperform at Baird and Raised to Buy at Deutsche Bank.
• Burger King (BKC) Raised to Outperform at Wachovia.
• Chartered Semiconductor (CHRT) Raised to Neutral from Sell at Goldman Sachs.
• Overseas Shipholding (OSG) Raised to Outperform at Oppenheimer.
• Schlumberger (SLB) Raised to Buy at Goldman Sachs.
• Tesoro (TSO) Raised to Neutral at JPMorgan.
• Wal-Mart Stores (WMT) Raised to Overweight at JPMorgan.

Jon C. Ogg
November 3, 2008

Source: 24/7 Wall St. | 3 Nov 2008 | 12:38 pm

Early Bird Analyst Downgrades (B, CCL, CTCM, DO, ESS, HAL, HMY, IP, ODFL, PKG)

These are some of the top pre-market analyst downgrades we have seen with more than two hours to the open this Monday morning:

• Barnes Group (B) Cut to Neutral at Baird.
• Carnival (CCL) Cut to Sell at S&P.
• CTC Media (CTCM) Cut to Neutral at Goldman Sachs.
• Diamond Offshore (DO) Cut to Neutral at Goldman Sachs.
• Essex Property Trust (ESS) Cut to Sell at Goldman Sachs.
• Halliburton (HAL) Cut to Neutral at Goldman Sachs.
• Harmony Gold (HMY) Cut to Underperform at RBC.
• International Paper (IP) Cut to Neutral at Goldman Sachs.
• Old Dominion Freight Line (ODFL) Cut to Neutral at Baird.
• Packaging Corp. (PKG) Cut to Neutral at Goldman Sachs.

Jon C. Ogg
November 3, 2008

Source: 24/7 Wall St. | 3 Nov 2008 | 12:32 pm

UPDATE 1-Russian October oil output highest in year

MOSCOW, Nov 3 (Reuters) - Russian oil production in October
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 12:31 pm

Rescue cash may attract 1,800 institutions: report

(Reuters) - As many as 1,800 publicly held institutions could apply for U.S. government investment in coming weeks, the Wall Street Journal said, citing Treasury and banking regulators.

Source: Reuters: Business News | 3 Nov 2008 | 12:24 pm

Rescue cash may attract 1,800 institutions: report (Reuters)

Reuters - As many as 1,800 publicly held institutions could apply for U.S. government investment in coming weeks, the Wall Street Journal said, citing Treasury and banking regulators.

Source: Yahoo! News: Business | 3 Nov 2008 | 12:24 pm

UPDATE 1-JPM cuts Patterson-UTI, Union Drilling to underweight

Nov 3 (Reuters) - J.P. Morgan Securities downgraded onshore
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 12:17 pm

UPDATE 1-American Tower Q3 results tops market estimates

Nov 3 (Reuters) - American Tower Corp , an operator
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 12:08 pm

Fed's Lacker wary on inflation, sees U.S. recovery

JERUSALEM (Reuters) - The Federal Reserve must not forget about inflation as it battles recession, or leave interest rates too low for too long next year, policy-maker Jeffrey Lacker said...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 12:01 pm

Stocks head for mixed open ahead of economic data

Wall Street started November on a tentative note Monday, with stock futures trading mixed ahead of readings on manufacturing activity, construction spending and auto sales. Investors are
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 11:57 am

HBOS deal to save Lloyds £1.5bn

Lloyds says its merger with HBOS will save it £1.5bn a year, raising fears of heavy job losses.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 11:54 am

Oil slips, despite firming stock markets

Lingering worries over the health of the global economy pushed oil prices lower Monday, as traders ignored advancing stock markets and focused on fears of slipping demand. Light, sweet...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 11:49 am

Socit Gnrales Net Profit Down 84 Percent in 3rd Quarter

Socit Gnrale said that net profit fell 84 percent in the third quarter after the turmoil in credit markets led to $1.54 billion of write-downs and other losses.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 11:49 am

Eurozone is on verge of recession

The eurozone's economy shrank by 0.2% in the second quarter of the year, according to the European Commission.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 11:48 am

Real Travel Media Group Inaugurates Greek Travel Promotion in Key European Markets

LONDON, November 3 /PRNewswire/ -- On 11 November 2008 Greek companies in the tourism and property sectors will promote and exhibit their products in a road show at the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 11:48 am

China's Dream Machine Loses It Mojo

The final shoe to fall in the global recession is China. It is a large enough supplier of goods to the entire civilized world and much of the world which is not civilized that it might dodge a recession. How could the entire globe hit a slowdown all at once and hit China in the head?

China was supposed to be the one financial shinning light on the Earth with its 10% GDP growth and relatively modest inflation, at least for a large economy expanding at a tremendous rate.

There is now very hard evidence that the "China miracle" has lost it ability to tread on water without sinking. Manufacturing in the country slowed considerably in October.

According to the AP, "The China Federation of Logistics and Purchasing said its purchasing managers' index, a broad measure of new orders, exports and other factors, fell to 44.6 in October." A number below 50 is considered extraordinarily bad.

The China problem may end up being as troublesome as the recession in the US, at least longer term. China's new middle class has been an important consumer of goods from the West and Japan. Problems in the economy of the most populated country in the world could also contribute to stagflation as its demand fro commodities falls sharply.

Analysts still hail the "China miracle" and talk about it taking its place as the leader of the global economy with the largest GDP and more favorable balance of trade.

If things keep getting worse on the mainland, they may not even be asked to host the Olympics again.

Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Nov 2008 | 11:45 am

EU growth seen grinding to a halt

The European Union's economic outlook is 'precarious', with growth expected to grind to a halt next year and put government finances under significant pressure, the European Commission warned
Source: FT.com - US homepage | 3 Nov 2008 | 11:45 am

Manufacturing slumps during 'brutal' October

Activity in Britain's manufacturing sector has fallen for the sixth month in a row, putting further pressure on the Bank of England to cut interest rates on Thursday.
Source: Latest Business News from Times Online | 3 Nov 2008 | 11:44 am

PepsiCo to spend $1B in China over next 4 years

Beverage and snack maker PepsiCo Inc. said Monday it will invest $1 billion in China over the next four years to expand its manufacturing capability, research and development and sales...
Source: Infocious RSS raw feed - channel BNewsBusiness | 3 Nov 2008 | 11:41 am

KKR delays planned US share listing

The private equity group postponed its planned New York listing until next year due to the uncertainty in the global financial markets. It also revealed it had written off almost $1bn in the first nine months of the year
Source: FT.com - US homepage | 3 Nov 2008 | 11:37 am

Commodities, Stagflation, And Recession

If memory serves, commodities prices were too expensive at mid-year. Corn was too high for ethanol companies to make money. One of the largest, Verasun (VSE), just went bankrupt. Oil prices were so high that people could not drive and would not buy new or used cars.

The agricultural products used to make most food jumped up so much that the normal consumer could not get a loaf of bread for under $50.

Apparently, all of that has changed.

According to Bloomberg, "Industrial raw materials measured by the Journal of Commerce fell at an annual rate of as much as 56 percent last week, the most since 1949 and worse than the declines before every recession since then." Prices might get more stable if businesses and consumers were in an expansive mood, but no one is buying anything. A consumer recession has lead to deflation in commodities prices and with joblessness rising, there is no reason to believe that will change.

The data is another piece of information encouraging economists to believe that deflation is the worst factor facing the economy. Adding the present recession to the overall picture makes it look like Japan in the 1980s and 1990s. It is called an "L-shaped" downturn because it drops quickly and runs along its bottom for a long time. No one has said, but that must be in contrast to better "U-shaped" or "V-shaped" tough economic times.

Referring to the alphabet is no cure. Commodities prices were supposed to stay high because nations like China were going to suck up supply for their incredible factory production. Now that the West is importing fewer of their goods, that theory is starting to get leaky.

The trouble with stagflation is that no one has come up with a sure fire formula to fight it. Bringing interest rates down to zero does not help much if demand for the things that money can buy is undermined by job losses and cautious businesses. Creating a government system to buy commodities from cooper to corn worldwide would cost trillions of dollars. That available capital is already going to underwrite aid to banks to cut off a liquidity crisis.

Commodities are driven up by two things. One is robust consumer demand and the other is war.

Making tanks and war ships available at zero rate financing probably will not do the trick

Douglas A. McIntyre.

Source: 24/7 Wall St. | 3 Nov 2008 | 11:15 am

UK manufacturing shrinks again

The UK's manufacturing sector shrunk for a sixth straight month in October but remained above September's low, figures indicate.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 11:04 am

South Korea Earmarks $10.9 Billion to Aid Growth

South Korea announced a $10.9 billion stimulus package, the latest in a string of steps by governments seeking to prop up growth and cushion the impact of the financial crisis.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 10:59 am

Recession expected through 2009

A survey of top economists released Monday shows that the vast majority of them believe the economy has fallen into a recession that will continue throughout all of 2009.

Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 10:58 am

The Brilliance Of The JP Morgan (JPM) Mortgage Salvation Plan

Source: 24/7 Wall St. | 3 Nov 2008 | 10:54 am

Profits slump at Societe Generale

French bank Societe Generale sees net profit slump 84% for the third quarter, but says it is able to weather the downturn.
Source: BBC News | Business | World Edition | 3 Nov 2008 | 10:36 am

The Bailout Gets Too Big

The Treasury may have to hire circus clowns and insurance salesmen to keep track of all the US banks it is bailing out. Now that the really large money center and regional banks have the cash, new applications for a piece of the pie are flooding through the door.

Each bank that gets capital is probably going to have to give up some ownership as part of the Paulson plan. It will require a lot of people to track the loans and equity stakes that go with them, probably many more than Treasury has on hand.

According to The Wall Street Journal, "Treasury and banking regulators say as many as 1,800 publicly held institutions could apply for government investments in coming weeks." It may take the next president two terms in office to process all of those requests.

It is probably a bad idea to let all of those smaller financial firms apply. If the law allows them to ask for money, they should probably be turned down. The tremendous trouble in the credit system is with large global money center banks which have substantial amounts of bad assets on their books. If the lending among them and to their customers frees up, the entire system ought to see improved liquidity. If they hoard their capital, lending from small banks is not going to make a difference.

The other reason every bank on every street corner in the US should no get Treasury money is that it defeats the Darwinian benefit of every economic downturn. The weak entities get washed out of the system through bankruptcy or buyout. Contravening the natural attrition of firms that cannot stand on their own would only mean they may fail further down the road, which would slow the eventual recovery of the financial system.

Loaning money to a great many banks is almost like loaning money to none. It only forestalls the day that the malignancy in the body of the financial world gets excised.

Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Nov 2008 | 10:28 am

KKR delays US share listing

Kohlberg Kravis Roberts on Monday delayed its planned New York initial public offering until next year, as the US private equity group blamed financial market turmoil for another big investment loss at...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 10:22 am

Commerzbank taps German bail-out fund

Commerzbank, Germany's second largest bank, announced on Monday it would boost its capital with an immediate 8.2bn injection from the government's financial sector bailout fund.The agreement means Commerzbank...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 10:21 am

Panasonic says no decision on Sanyo takeover

TOKYO (Reuters) - Panasonic Corp said nothing has been decided about a potential takeover of rival Sanyo Electric Co Ltd, after sources said the companies had agreed in principle to a deal to create Japan's largest electronics maker.

Source: Reuters: Business News | 3 Nov 2008 | 10:13 am

PE exec to help UAW on potential GM/Chrysler deal: source (Reuters)

Reuters - Stephen Girsky, a veteran auto-industry analyst and private equity executive, is working with the United Auto Workers union with regards to any potential General Motors Corp and Chrysler LLC deal, a source familiar with the situation said on Sunday.

Source: Yahoo! News: Business | 3 Nov 2008 | 9:52 am

PE exec to help UAW on potential GM/Chrysler deal: source

NEW YORK (Reuters) - Stephen Girsky, a veteran auto-industry analyst and private equity executive, is working with the United Auto Workers union with regards to any potential General Motors Corp and Chrysler LLC deal, a source familiar with the situation said on Sunday.

Source: Reuters: Business News | 3 Nov 2008 | 9:52 am

Ryanair profits fall sharply

Ryanair profits fell heavily in its first six months under pressure from the doubling of fuel costs, and the group forecast that it would be in loss during the second half of the year.Michael O'Leary,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 9:38 am

Lloyds pledges to resume dividends in 2009

Lloyds TSB on Monday said it aimed to resume dividend payments during 2009, as it launched its formal offer for rival HBOS. In order to do so, it will have to repay the preference shares being issued to...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 9:27 am

HBOS writedowns double to 5.18bn

HBOS on Monday revealed that writedowns against its profit and loss account for the nine months to the end of September would be 5.18bn, a more than doubling of the 2.46bn taken in the first half. The...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 9:25 am

Australian Stocks: Market finishes almost five per cent higher

MELBOURNE - The Australian share market finished around five per cent stronger - its best performance in almost two weeks, adding $51 billion to the value of stocks today on expectations that interest rates will be cut again tomorrow. At...
Source: New Zealand Herald - Business | 3 Nov 2008 | 9:22 am

SocGen profits slide in third quarter

PARIS, November 3 - French bank Socit Gnrale reported an 83.7 per cent fall in third-quarter net profit on Monday and said it was financially strong enough to withstand the global financial crisis.Its...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 9:18 am

Asian stock markets post gains

Hong Kong's blue-chip index is among the region's top gainers. Singapore's key index is up about 4%. HONG KONG...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 9:18 am

Asian stock markets post gains

Hong Kong's blue-chip index is among the region's top gainers. Singapore's key index is up about 4%.

HONG KONG — Asian stock markets rose today, with Hong Kong's benchmark advancing 3 percent, as investors appeared encouraged by government efforts to help the global economy weather the financial crisis.

Source: L.A. Times - Business | 3 Nov 2008 | 9:18 am

Media Digest 11/3/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, South Korea launched a major economic stimulus package.

Reuters reports that nearly 1,800 publicly held institutions could apply for U.S. government investments.

Reuters reports that HBOS took an $8.5 billion hit on the value of its portfolio and assets.

Reuters reports that the UAW has hired special consultants to help it decide how to handle a possible GM (GM) merger with Chrysler.

Reuters reports that Societe Generale turned in poor results, but said it would make it through the credit crisis.

Reuters reports that Panasonic says it has made no decision on taking over Sanyo.

Reuters reports that the head of home improvement company Lowe's (LOW) believes that once the election is over consumer sentiment will improve.

Reuters reports that Microsoft (MSFT) and LG will cooperate on building new mobile technology.

The Wall Street Journal reports that AIG (AIG) risk models built by computers failed the test of the credit crisis.

The Wall Street Journal reports that Toyota (TM) is looking at increasing its effort in the India market.

The Wall Street Journal reports that Boeing (BA) is gearing up production now that its strike is over.

The Wall Street Journal reports that super-rich private investors in the Middle East may begin to put large sums of money into Western banks.

The Wall Street Journal reports that the FDIC is getting tough on banks and threatened at one point to seize Wachovia.

The Wall Street Journal reports that cable will have to continue to carry over-the-air channels.

The Wall Street Journal reports that Ford (F) financial results may raise the issue of whether it can survive.

The Wall Street Journal reports that video game makers are being hit by the recession.

The Wall Street Journal report that the economy may hit Whole Food (WFMI)

The New York Times reports that the US has rejected calls to aid a GM merger with Chrysler.

The New York Times reports that Yahoo! (YHOO) News will treat election night as a special way to improve traffic.

The New York Times reports that prices for large screen TVs may drop, but that may not draw consumers.

The FT reports that the Yahoo! sales deal with Google (GOOG) is likely to fail.

The FT reports that pressure is mounting for rate cuts by the UK and EU.

The FT reports that large energy companies are having trouble getting financing.

The FT reports that Wal-Mart (WMT) will take advantage of several opportunities driven by the recession.

Bloomberg writes that KKR will delay its IPO until 2009.

Douglas A. McIntyre

Source: 24/7 Wall St. | 3 Nov 2008 | 8:53 am

Markets Rise Cautiously in Europe and Asia

Stocks rose Monday in Europe and Asia but trading was cautious as market attention focused on the U.S. presidential election Tuesday.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 Nov 2008 | 8:47 am

SocGen profits fall 84% on Lehman Brothers hit

Société Générale, France's second largest bank, today revealed an 84 per cent fall in third-quarter profits after taking a €1.2 billion (£950 million) hit from the collapse of America's Lehman Brothers and the continuing impact of global financial turmoil.
Source: Latest Business News from Times Online | 3 Nov 2008 | 8:47 am

Lloyds TSB pledges to resume dividends by 2009

Lloyds TSB today pledged to resume paying a dividend to shareholders by at least 2009 after repaying £4 billion to the Government as part of a £17 billion taxpayer-funded package to rescue HBOS, owner of Halifax and Bank of Scotland.
Source: Latest Business News from Times Online | 3 Nov 2008 | 8:21 am

State to air small businesses' policy ideas

Later this month, Gov. Arnold Schwarzenegger will host the state's first Governor's Conference on Small Business and Entrepreneurship, to be held in Los Angeles.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

Halloween keeps moviegoers away from box office

The holiday keeps would-be viewers out of theaters, with ticket sales down nearly 37% year over year.

Halloween played a trick on Hollywood studios this weekend, scaring away moviegoers Friday night.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

Some owners deserting factories in China

Financially troubled plants are being abandoned by the boss, leaving behind unpaid workers and debts.

First, Tao Shoulong burned his company's financial books. He then sold his private golf club memberships and disposed of his Mercedes S-600 sedan.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

MTV Networks in deal to monetize uploaded videos

The company plans to pair ads with clips on MySpace using Auditude's technology.

Hollywood used to fume when fans uploaded video clips to the Internet to share with their friends. Now it's looking to cash in on them.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

Utilities putting new energy into geothermal sources

Geothermal sources draw power firms in quest for renewables.

Not far from the blinking casinos of this gambler's paradise lies what could be called the Biggest Little Power Plant in the World.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

Running a fence firm requires building a knowledge base

Craig Lewis bought Artisan Precast after years in the banking industry and learned some hard lessons about being the boss of a construction business.

After spending years climbing the corporate ladder at national credit card issuer MBNA Corp., Craig Lewis decided he wasn't going to be content unless he could run his own company.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

IPhone users love their video games

Games have become the fastest-growing and most popular type of application for the mobile device.

Within days of buying his iPhone, John Furrier discovered that his 13-year-old son, Alec, was sneaking off with the device and downloading games. To reclaim his phone, Furrier had to buy his son an iPod Touch, which Alec quickly filled up with Pac-Man, Magic 8 Ball and dozens of other games.

Source: L.A. Times - Business | 3 Nov 2008 | 8:00 am

Seoul to pump extra $11bn into economy

South Korea plans to pump an extra $11bn into its economy next year to help fend off the impact of the global financial storm, which is beginning to hit exports – the country's economic lifeblood
Source: FT.com - US homepage | 3 Nov 2008 | 7:18 am

NZ stocks: Market picks up as day goes on

The New Zealand sharemarket started flat but slowly gathered upward momentum as the Australian market raced ahead. The benchmark NZSX-50 index closed up 35.802 points, or 1.269 per cent, at 2856.664. There were 48 rises and 30...
Source: New Zealand Herald - Business | 3 Nov 2008 | 6:04 am

Currency: Dollar rises, puts volatile month behind it

After a tumultuous month, the New Zealand dollar rose today as investors became less worried about risk. By 5pm today it was buying US59.27c from US58.80c at 5pm on Friday. The NZ dollar showed little reaction to news that salary...
Source: New Zealand Herald - Business | 3 Nov 2008 | 5:45 am

Indian stock index up 4.6 pct in early trade (AP)

AP - India's benchmark stock index rose 4.6 percent in morning trade Monday, as investors digested the central bank's weekend decision to cut the nation's key interest rate and release $8.1 billion into the country's financial system.
Source: Yahoo! News: Business | 3 Nov 2008 | 5:10 am

Saudis will help stricken economies, says Gordon Brown

Gordon Brown claimed success yesterday in his attempt to persuade Saudi Arabia to help stricken economies by pumping more money into the International Monetary Fund.
Source: Latest Business News from Times Online | 3 Nov 2008 | 12:01 am

Commerce becalmed over letters of credit

The credit drought is undermining international trade in goods and raw materials with savage increases in the cost of funding for exporters. At the same time, buyers of goods are being denied access to letters of credit - the banking instruments that are the nuts and bolts of global trade.
Source: Latest Business News from Times Online | 3 Nov 2008 | 12:00 am

US economy set to turn towards socialist path

Which ever candidate wins the US presidential elections tomorrow, America will continue to travel down the “socialist” path, leading experts predict.
Source: Latest Business News from Times Online | 3 Nov 2008 | 12:00 am

Salaries and wages rising at record rate

Salary and wage rates grew at a record 3.6 per cent in the year to the September quarter, figures published today by Statistics New Zealand (SNZ) show. The annual increase in the labour cost index (LCI) was the largest since the...
Source: New Zealand Herald - Business | 3 Nov 2008 | 12:00 am

TrustPower surplus up 4 per cent

TrustPower posted a first half after tax surplus of $66.8 million, up 4 per cent from a year earlier. The company also announced today it was considering an offer of unsecured subordinated bonds, worth up to $100m, with $50m reserved...
Source: New Zealand Herald - Business | 3 Nov 2008 | 12:00 am

Ramius considers closing HK unit

Ramius, a US hedge fund with $11bn under management, is considering handing back its Hong Kong trading and advisory licences, in a sign that some funds are retreating from Asia
Source: FT.com - US homepage | 2 Nov 2008 | 11:33 pm

Obama extends lead into final day

John McCain enters the final day of the 2008 presidential contest facing what even some prominent Republicans were dubbing a difficult fight as a clutch of polls showed Democrat Barack Obama's lead widening into the double digit
Source: FT.com - US homepage | 2 Nov 2008 | 11:32 pm

NZ stocks: Market flat in early trade

The New Zealand sharemarket was flat as trading started for November, after last month's steep decline. The benchmark NZSX-50 index did lift in the last three trading days of October, gaining 58 points on Friday, and around 10.15am...
Source: New Zealand Herald - Business | 2 Nov 2008 | 11:00 pm

Brown, Sarkozy seek 'new Bretton Woods'

Gordon Brown and Nicolas Sarkozy want agreement in Washington from the leaders of the G20 group of advanced and emerging economies for a 'new Bretton Woods', a redesign of the postwar global financial architecture
Source: FT.com - US homepage | 2 Nov 2008 | 10:50 pm

Yahoo-Google alliance hopes recede

The stalled advertising partnership between Yahoo and Google faces the latest in a lengthening series of deadlines this week, with the chances looking increasingly slim that the two internet companies will go ahead with the alliance
Source: FT.com - US homepage | 2 Nov 2008 | 10:33 pm

Currency: Dollar takes a breather

After a tumultuous month, the New Zealand dollar has taken a breather. By 8am today it was buying US58.48c from US58.80c at 5pm on Friday. The NZ dollar had remained locked within a relatively tight range to finish off a month...
Source: New Zealand Herald - Business | 2 Nov 2008 | 9:20 pm

Rebel grip tightens in eastern Congo

Rebels led by renegade commander Laurent Nkunda tightened their grip over a swathe of territory in eastern Congo captured after they routed government forces in fighting
Source: FT.com - US homepage | 2 Nov 2008 | 8:23 pm

New business complex planned for Napier

A $30 million commercial business complex set to be the largest of its kind in the Lower North Island is on the cards for Napier. Big Save Limited purchased 90,000 sqm of buildings and 4.6 hectares of land in Ahuriri, Napier last...
Source: New Zealand Herald - Business | 2 Nov 2008 | 7:45 pm

Jobless to rise as firms cut costs

The unemployment rate is expected to jump when September quarter jobs data are released on Thursday, as the recession pushes more firms over the line from the desire to hoard labour to the need to cut costs. Market economists'...
Source: New Zealand Herald - Business | 2 Nov 2008 | 7:20 pm

Offers but no buyers yet in $100m block

No units have been sold in a $100 million Auckland apartment block. In one of the most obvious examples of the state of the property market, the city's most upmarket new property project lacks buyers, although offers have been...
Source: New Zealand Herald - Business | 2 Nov 2008 | 7:00 pm