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Brent oil price near $60 a barrelThe price of Brent crude falls below $60 a barrel for the first time in 20 months before edging up, though demand concerns remain.Source: BBC News | Business | World Edition | 4 Nov 2008 | 12:41 pm Top Pre-Market Analyst Upgrades (AER, AGU, CF, GVA, MFLX, OMRI, PM, PFG, TRA)These are some the top pre-market upgrades from analysts we have seen with more than two hours until the market opens this Tuesday morning:
Jon C. Ogg Source: 24/7 Wall St. | 4 Nov 2008 | 12:40 pm Zardari seeks urgent Saudi fundsPakistani President Asif Ali Zardari arrives in Saudi Arabia on a two-day visit to seek assistance for his cash-strapped country.Source: BBC News | Business | World Edition | 4 Nov 2008 | 12:39 pm Top Pre-Market Analyst Downgrades (STD, XOM, HOC, ICON, TROW, VLO)These are some the top pre-market analyst downgrades we have seen with more than two hours until the open this Tuesday morning:
Jon C. Ogg Source: 24/7 Wall St. | 4 Nov 2008 | 12:37 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 12:31 pm Movers & Shakers: Tuesday's biggest gaining and declining stocksAmong the companies whose shares are expected to see active trade in Tuesday’s session are ADP, Con-Way, Guidance Software, Jacobs Engineering, Magna International, Marvel, Marvell, Mastercard, Mohawk, Nokia, Pitney Bowes, and UBS.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 12:28 pm Australia cuts rates, EU presses for reform (Reuters)
Source: Yahoo! News: Business | 4 Nov 2008 | 12:21 pm Australia cuts rates, EU presses for reformLONDON/SYDNEY (Reuters) - Australia cut interest rates sharply on Tuesday, presaging expected reductions in Europe later this week, and EU leaders pressed for an overhaul of global market rules.Source: Reuters: Business News | 4 Nov 2008 | 12:21 pm Oil rises above $64 after Saudi cuts suppliesLONDON (Reuters) - Oil rose above $64 on Tuesday, after industry sources said Saudi Arabia had already made substantial cuts in supplies and helped the market recoup earlier losses.Source: Reuters: Business News | 4 Nov 2008 | 12:19 pm Emerson profit tops estimatesNEW YORK (Reuters) - Industrial conglomerate Emerson Electric Co reported higher-than-expected quarterly profit on Tuesday, amid strength in its network power business and its process management segment, which makes technology for the oil and gas industry.Source: Reuters: Business News | 4 Nov 2008 | 12:11 pm Legal costs hit Mastercard profitsMastercard, one of the leading card networks, has reported a quarterly loss due to a big legal charge.Source: BBC News | Business | World Edition | 4 Nov 2008 | 12:07 pm Dark Star Nouriel Roubini: China Will Fall Apart
His latest prediction is that China will fall apart. Not much of a prediction given that the rest of the world is in a recession worse than the one in 1974. According to his newsletter, RGE Monitor, "For the last few years the global economy has been running on two engines, the U.S. on the consumption side and China on the production side, both lifting the entire global economy." "More worrisome there are now increasing signs that the other main engine of the global economy – China - is also stalling." His comments are a statement of what has been obvious to most people for a long time. But, it is nice to have verification. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 12:06 pm Banking crisis has roots in Brown reformsThe current banking crisis has its roots in banking system reforms introduced by Gordon Brown in his days as Chancellor, a report claimed today.Source: Latest Business News from Times Online | 4 Nov 2008 | 12:02 pm BMW dumps 2008 outlook amid global autos slowdown (Reuters)
Source: Yahoo! News: Business | 4 Nov 2008 | 11:57 am BMW dumps 2008 outlook amid global autos slowdownFRANKFURT/LONDON (Reuters) - BMW abandoned its 2008 earnings forecast and cut production on Tuesday after a 60-percent plunge in quarterly profit that underscored slowing sales in the troubled autos industry.Source: Reuters: Business News | 4 Nov 2008 | 11:57 am Reed Elsevier hires ex-Taylor Woodrow chiefIan Smith, the former chief executive of Taylor Woodrow, the UK housebuilder, will replace Sir Crispin Davis as chief executive of Reed Elsevier, the publisher, in March.Source: Latest Business News from Times Online | 4 Nov 2008 | 11:51 am Wall Street set for Election Day boostU.S. stocks futures rose Tuesday as voters began heading to the polls to choose America's next president.Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 11:48 am Global markets head higherGlobal stock indexes were mostly higher Tuesday as the two-year race for the White House neared an end.Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 11:47 am Stock futures rise ahead of electionLONDON (Reuters) - Stock futures pointed to a higher start on Wall Street on Tuesday as Democrat Barack Obama and Republican John McCain face the verdict of U.S. voters.Source: Reuters: Business News | 4 Nov 2008 | 11:47 am Siemens selling joint-venture stake to FujitsuHONG KONG (MarketWatch) -- Japan's Fujitsu Ltd. will acquire Siemens's 50% stake in IT infrastructure joint-venture Fujitsu Siemens Computers for 450 million euros ($570 million).Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 11:45 am Blasting off with Richard BransonWhen Richard Branson launches his space-tourism business in 2010, Yacov Wrocherinsky will be among the first to soar.Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 11:43 am BMW profits crash 63% as sales fallBMW, the German luxury car maker, announced a sharp drop in profits this morning and admitted it would miss its targets for 2008 as sales fell by 4.2 per cent in the third quarter.Source: Latest Business News from Times Online | 4 Nov 2008 | 11:39 am Oil prices fall on recession woesRead full story for latest details.Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 11:37 am Stock futures rise ahead of election (Reuters)
Source: Yahoo! News: Business | 4 Nov 2008 | 11:34 am World stocks up as focus turns to U.S. voteLONDON (Reuters) - World stocks edged higher on Tuesday as Australia's big interest rate cut raised the view Europe's central banks might follow with aggressive action, while investor focus turned to the U.S. presidential vote.Source: Reuters: Business News | 4 Nov 2008 | 11:27 am Intel's (INTC) New Chip: When Is Enough Enough?
The continuing advance of chip capacity does raise the issue of when PC and server users come to the point where the additional computing power does not make much difference. According to The Wall Street Journal, "Performance gains were particularly impressive for tasks such as video encoding and rendering three-dimensional images." Those features are not ones that the great majority of PC and server customers need. While Intel is not putting itself out of business by making better and faster products, it probably is moving toward a future when its best chips are so good that the market for them is modest. Part of the solution to that is that Intel is making small and cheap processors for "netbooks", a way to build a new channel for sales. But the revenue and margins on these are not spectacular. Intel's future may have more innovation, but it is also likely to have slower growth and worse net income. the firm created a world that makes those things inevitable. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 11:25 am Global slowdown hits BMW profitsGerman luxury carmaker BMW sees quarterly profits fall because of the global slowdown and says it cannot forecast future results.Source: BBC News | Business | World Edition | 4 Nov 2008 | 11:25 am Europe Markets: Shares in Europe higher for sixth sessionEuropean shares gained for the sixth straight session on Tuesday, the day of the U.S. presidential election, paced by gains from banks such as UBS.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 11:19 am RBS offers gloomy outlook as economy worsensRoyal Bank of Scotland said Tuesday that it took 206 million pounds ($325 million) of write-downs against its bottom line in the third quarter as it also offered a gloomy outlook for the rest of the year.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 11:15 am Marks & Spencer 1H profit falls 43 percent (AP)AP - Britain's largest clothing retailer, Marks & Spencer, on Tuesday posted a 43 percent fall in net profit for the first half of the year as costs rose and the company cut prices to keep consumers coming through the doors despite the looming recession.Source: Yahoo! News: Business | 4 Nov 2008 | 11:12 am Icesave compensation plan startsUK savers in the collapsed Icesave internet bank are being sent emails telling them how they can get their money back.Source: BBC News | Business | World Edition | 4 Nov 2008 | 11:11 am Why The Election Doesn't Matter To The Economy
The first and foremost among these is that the new people cannot get to their offices before the end of January. Before their embossed stationary gets in and they have their first orientation meetings, it will be March. The avalanche of the wounded economy will have already crushed large parts of the industrial and financial base. Getting down to work at the end of the first quarter is just too late. Another popular view about the inability of the new order to help solve the credit, housing, and liquidity problems that vex the rest of the global GDP is that the individual governments do not have the power to fix troubles that do not have borders. Perhaps, the world financial system was not so global when FDR was president and tried to right the US economy, although there are still questions about whether his programs did any good. The corollary to the globalization of the recession is that big governments will never see things the same way. There will be wrangling over who is in charge, who benefits, and where the capital comes from to make things better. Sitting somewhere in the shadows is the argument that a recession is a recession because it is intractable. If it could be fixed, it would not be a recession. It would be an economic incident without the energy to resist government and central bank intervention. The Great Depression is too harsh a comparison, but a great number of analysts believe that WWII saved the economy more than any government attempt to make matters better. The 1973 recession began -- based on most historians' views -- with the Arab oil embargo. Crude prices went from $3 to $12 in a matter of months. The consumer retreated into a shell from the shock of having a large portion of his income consumed by energy costs. The private housing industry took on water as buyers became cautious. Investment purchases dropped for almost two years. Over that same period the Fed cut interest rates from 10.2% to 6.1%. Since inflation was widespread, that is probably comparable to the interest rate reductions taken by the agency over the last year. But, the consumer did not react much to these actions and neither did business. Unemployment rose in every quarter for seven quarters.GDP fell seven quarters as well. As oil prices moderated and businesses had access to cheaper labor, the ability to pay lower wages, and more favorable costs of goods, the economy made its way back.The recession had fixed it own troubles by making the system of creating jobs and capital investments more efficient. The adjustment to the cost of doing business made the economy healthy again. Politicians do not have that power and, in all likelihood, neither do the officials they appoint. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 11:09 am Swiss Re reports surprise deficitSwiss Re, one of the biggest reinsurers in the world, reports a surprise loss, hurt by the global financial crisis.Source: BBC News | Business | World Edition | 4 Nov 2008 | 11:02 am UBS hopeful on outflows, warns on Q4ZURICH (Reuters) - UBS AG said a government bailout is helping to stem client money outflows but warned that it could take a 6 billion Swiss franc ($5.20 billion) hit in the fourth quarter due to accounting effects.Source: Reuters: Business News | 4 Nov 2008 | 10:53 am Markets Await Outcome of U.S. ElectionThe Australian central bank slashed its key interest rate by three-quarters of a percentage point rather than the half-percentage point that had been expected.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 10:53 am Punch Taverns cautious about trading outlookPunch Taverns, the embattled pub company, sought to reassure investors over its financial position today, despite remaining cautious over the trading outlook for the coming year.Source: Latest Business News from Times Online | 4 Nov 2008 | 10:49 am Indications: U.S. stock futures climb as voters head to the pollsU.S. stock futures pointed higher Tuesday as voters headed to the polls to choose a new president and as some analysts say much of the bad news around the economy and corporate profits are already priced into stocks.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 10:46 am Swedish debt office: state finances deterioratingSweden's state finances are deteriorating due to the global financial crisis, with recent budget surpluses likely to swing to deficits in coming years, the national debt office said...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:42 am EU finance ministers debate reformFrance pushed its EU partners Tuesday to support boosting the powers of the International Monetary Fund to contain the turmoil that has swept financial markets worldwide and is slowing the...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:41 am Job cuts rise amid record construction fallConstruction activity in the UK fell at a record rate last month as demand for new houses and commercial property continued to wane amid the global financial turmoil, according to a key industry survey.Source: Latest Business News from Times Online | 4 Nov 2008 | 10:39 am Europe's markets edge higher ahead of US electionEuropean markets edged higher Tuesday following mixed trading in Asia overnight with activity subdued ahead of the U.S. presidential election and Thursday's interest rate decisions from theSource: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:38 am Nokia to cut almost 600 sales and marketing jobs: companyThe world's leading maker of mobile phones, Nokia of Finland, said on Tuesday it would cut almost 600 jobs, mainly in its sales and marketing division. "As a follow-up to...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:31 am Saving The Car Industry One Sale At A Time (GM)(F)
The federal government stiff-armed them. It would not look good to be an agent of increasing unemployment. But, there is another alternative. The Treasury still has some of the $700 billion that Congress gave it left and the Fed has the right to pass out money to non-banking entities. That means there is still capital floating around which has not been committed. One of the most popular programs for helping people stay in their homes is to reset the value of mortgages by bringing down interest rates or decreasing monthly payments. An auto industry bailout might take a page from that. Detroit and its peers from overseas can only hand out so much money to people who want cars. Most offer zero rate financing and "cash back" to folks who can still afford a new set of wheels. None of this was enough to keep GM from losing 45% of its vehicles sales last month or Ford (F) from losing 35%. If the auto industry is still an essential part of American manufacturing, and the government wants to find a way to aid it, the money could go directly to helping the car buyers and not the car companies. Giving every person who buys a new vehicle $5,000 from the federal government may seem like socialism at its most magnificent, but it would almost certainly stimulate sales without giving a bone-headed auto executive like Robert Nardelli direct access to capital for his private plane. A car-buyer assistance package would not be any more counter to capitalism than giving banks money to keep them from faltering. What would it cost? Fifty million dollars for every 10,000 vehicles sold. In October, the entire domestic market did not represent close to 900,000 sales Moving that up by 100,000 extra units would have made a remarkable difference. Who would not like a new car? Some of those dreamers could actually buy one with a little help. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 10:28 am British bank RBS outlines government-backed rescueThe Royal Bank of Scotland on Tuesday launched a government-backed plan to raise 19.7 billion pounds (24.7 billion euros, 31 billion dollars) as part of Britain's banking sector bail-out.Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:21 am RBS writes down $1.9 billion, may post annual lossRoyal Bank of Scotland Group PLC could suffer an annual loss after it announced Tuesday that it had been forced to write down 1.2 billion pounds ($1.9 billion) of bad assets in the third...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:20 am Brent oil price slides under $59 a barrelThe Brent crude oil price sank under 59 dollars per barrel on Tuesday on concerns over weak energy demand in Europe and the United States, dealers said. Brent North Sea crudeSource: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:19 am Solar stocks for a rainy dayNo one loves Arnold Schwarzenegger more than the solar industry. Kicking off the nation's largest gathering devoted to all things sunny, the California governor won thunderous applause and two standing ovations from the crowd of 20,000 at the San Diego Convention Center. "What's green for the environment can also be green for the economy," he said. "Solar is the future; it's now; it can't be stopped."Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 10:17 am Euro up on dollar at $1.2718The euro rose on the dollar Tuesday ahead of the American presidential election and an anticipated interest rate cut from the European Central Bank this week. The 15-nation euro rose to...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:15 am Where business is boomingCold, landlocked, and boasting as its largest metropolis the city of Saskatoon, Saskatchewan may not be top of mind for most Americans. But the Canadian province is one of the richest spots in the world when it comes to natural resources. It's the world's largest producer of uranium. It's the biggest producer of the fertilizer potash (current price: $1,000 a ton, up from $300 this time last year). It is the world's largest exporter of green lentils and chickpeas. And it's home to enormous supplies of oil and gas: The U.S. buys more oil from Saskatchewan than it does from Kuwait. No wonder the CEO of one Fortune 500 company - Jim Prokopanko of Mosaic, which has a potash mine near the town of Esterhazy - describes the prairie province as "the next sovereign wealth fund."Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 10:12 am Slammed by financial crisis, BMW drops full-year outlookBMW, the German luxury car maker, said on Tuesday that it could no longer give a forecast for 2008 and was downbeat for next year too after getting hit head-on by the international...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 10:11 am RBS braces for first annual lossRBS signals it expects to make its first annual loss as it makes further write-downs on assets hit by the credit crunch.Source: BBC News | Business | World Edition | 4 Nov 2008 | 10:10 am Australia slashes interest ratesRead full story for latest details.Source: Business and financial news - CNNMoney.com | 4 Nov 2008 | 10:07 am RBS sees more writedowns, eyes 2010 dividend restartLONDON (Reuters) - Royal Bank of Scotland reported a smaller-than-expected writedown of 206 million pounds ($334 million) on toxic assets in the third quarter but said it faces more this quarter and bad debts are rising sharply, sending its shares lower.Source: Reuters: Business News | 4 Nov 2008 | 10:05 am BG Group profits rise 140% on oil price spikeBG Group, the oil and gas producer, reported a steep increase in third-quarter profits on the back of soaring oil prices but gave warning of sharply rising development costs around the world.Source: Latest Business News from Times Online | 4 Nov 2008 | 10:00 am UPDATE 2-Fujitsu to buy Siemens stake in PC joint ventureTOKYO, Nov 4 (Reuters) - Japanese electronics conglomerateSource: Infocious RSS raw feed - channel BNewsBusiness | 4 Nov 2008 | 9:55 am Swiss Bank UBS Posts Third-Quarter ProfitAfter reporting a net profit of 296 million Swiss francs ($252 million), compared with a year-earlier loss of 858 million francs, the Swiss banking giant gave a gloomy forecast for the rest of the year...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 9:52 am UBS swings to profit, says it's facing a tough final quarterSwiss banking giant UBS said Tuesday that it’s facing another tough quarter to end the year as weak global markets hinder its ability to earn fees from wealth clients.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 9:50 am Mandelson warns banks to pass on rate cutsLord Mandelson upped the stakes in a row with UK banks this morning by warning that they face a customer backlash if they do not pass on interest rate cuts to customers.Source: Latest Business News from Times Online | 4 Nov 2008 | 9:49 am London Markets: Miners, RBS weigh in steady London; Marks & Spencer upLONDON (MarketWatch) - London shares traded in a tight range on Tuesday, the day of the U.S. presidential election, with losses from miners and Royal Bank of Scotland offsetting gains from Marks & Spencer and other retailers.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 9:46 am General Electric orders 25 China-made jetlinersGeneral Electric Co. is set to buy five Chinese-made regional jets, marking the first overseas orders for the aircraft and providing a major boost for the manufacturer.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 9:45 am M&S suffers sharp fall in profitsHalf-year profits at Marks and Spencer fall 34% as the weakening economy takes its toll on consumer confidence.Source: BBC News | Business | World Edition | 4 Nov 2008 | 9:41 am Asia Markets: Tokyo stocks sparkle in a mixed regionAsian markets were split on either side of breakeven Tuesday, with Japanese stocks pacing gains as exporters such as Toyota Motor Co. were spurred by the yen's weakness, while Australian shares cut losses after the central bank cut its benchmark interest rate by 0.75 percentage point to 5.25%.Source: MarketWatch.com - Top Stories | 4 Nov 2008 | 9:10 am Media Digest 11/4/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that a large Goldman Sachs (GS) fund lost $1 billion in the first ten months of the year. Reuters writes that the Treasury is considering buying stakes in financial firms beyond banks and brokerages. Reuters writes that auto sales hit a 25-year low. Reuters reports that Yahoo! (YHOO) and Google (GOOG) have submitted a revised deal for a joint sales venture to the Justice Department. Reuters writes that Honda (HMC) has decided against offering zero percent financing in the US. Reuters writes that Panasonic's shares were up on the chance it will buy Sanyo. Reuters reports that MasterCard (MA) shares were up on strong earnings. Reuters reports that net income was down 37% at Viacom (VIA). The Wall Street Journal writes that the White House and FDIC are at odds over details of a mortgage rescue plan. The Wall Street Journal reports that UBS (UBS) swung to a profit. The Wall Street Journal reports that private equity firms are having problems getting capital from pensions. The Wall Street Journal reports that the Intel Core i7 has received good early reviews. The Wall Street Journal writes that "pain in the market for convertible bonds is crippling big hedge funds." The Wall Street Journal reports that investors are awaiting results from Oracle (ORCL) to determine the direction of the tech market. The Wall Street Journal reports that Lenovo is expanding around the world, but financial results are not good. The New York Times writes that Commerzbank is trying to get over $10 billion in bailout money from the German government. The New York Times reports that a survey of banks shows credit is getting even tighter. The New York Times reports that the FCC will vote on whether to make a portion of the radio spectrum available for public use. The FT says Wall St. executives insist aid money will not go toward bonuses. The FT reports that Blue Mountain Capital Management is suspending withdrawals from one of its funds. Bloomberg writes that BWW abandoned its financial forecasts after reporting a tough Q3. Bloomberg writes that JP Morgan (JPM) CEO Dimon sees no recovery in the financial system until 2010. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 8:48 am Australian Central Bank Cuts Interest RateThe Australian central bank slashed its key interest rate by three-quarters of a percentage point rather than the half-percentage point that had been expected.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:47 am History lessonWhat can we learn from past stock market crashes?Source: BBC News | Business | World Edition | 4 Nov 2008 | 8:36 am Japan's Nikkei index surges 6.3 percent (AP)
Source: Yahoo! News: Business | 4 Nov 2008 | 8:23 am UBS wary despite return to profitSwitzerland's largest bank, UBS, reports a profit for the third quarter of 2008 but warns of tough times ahead.Source: BBC News | Business | World Edition | 4 Nov 2008 | 8:22 am Asia Market and Europe Open 11/4/2008
The Nikkei rose 6.3% to 9,115. Mitsubishi UFJ Financial. Nissan was down on a profit warning. The Hang Seng moved down 2% to 14.420. The Shanghai Composite dropped .8% to 1,707. The FTSE opened up .1% to 4,447. The CAC rose .3% at the open to 3,537. Data from Reuters. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 8:19 am Australia cuts interest rate to 5.25%The Reserve Bank of Australia (RBA) defied market forecasts with a surprise 75 basis-point cut in interest rates in a move taken by many investors as a dire warning for the overall economy.Source: Latest Business News from Times Online | 4 Nov 2008 | 8:19 am Gasoline prices plunge below $2 a gallon in parts of U.S.Nationally, the average price for self-serve regular has fallen 25.6 cents to $2.40 a gallon over the last week, while in California it's down 34.7 cents to $2.783. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Redstone suggests he might sell theaters to raise cashNational Amusements has a big debt payment looming and the media mogul says he won't dump more Viacom or CBS stock. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Budget crunch a threat to defense spending, whoever wins White HousePentagon cutbacks could take several years to unfold, but Southern California's aerospace industry could be hit particularly hard. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Shops and restaurants elect to offer freebies to voters todaySeveral businesses including Starbucks, Daily Grill and Cristophe salon are offering promotions in honor of election day. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Circuit City closing 155 storesThe electronics retailer says it will shut 20% of its U.S. stores, including 24 in California, and fire about 17% of its employees by year-end. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Banks' loan standards tighten further, Fed survey findsBanks have tightened up further on all sorts of lending, including home mortgages, credit cards and business loans, as the worst financial crisis in seven decades took a bigger toll on the economy.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Warner Bros. to offer legal movie downloads in ChinaInternet users in China will be able to rent and watch releases online for $1 or less. In an attempt to make headway...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Nov 2008 | 8:00 am Auto sales fall 32% in OctoberFord reports a 29% drop for the month compared with last year; General Motors is down 45%. Among imports, Toyota falls 21% and Honda, 26%.The last time auto sales were this bad, the U.S. had just gone to war in Iraq -- for the first time. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Warner Bros. to offer legal movie downloads in ChinaInternet users in China will be able to rent and watch releases online for $1 or less.In an attempt to make headway against rampant film piracy, Warner Bros. will distribute newly released films online in China. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Shops and restaurants elect to offer freebies to voters todaySeveral businesses including Starbucks, Daily Grill and Cristophe salon are offering promotions in honor of election day.When you leave the polls today, don't throw out that "I Voted" sticker -- it could be your ticket to a free meal or half-price haircut. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Circuit City closing 155 storesThe electronics retailer says it will shut 20% of its U.S. stores, including 24 in California, and fire about 17% of its employees by year-end.With consumer spending down, a stifling economy and losses in eight of the last nine quarters, Circuit City Stores Inc. said Monday that it would close about 20% of its more than 700 U.S. stores and fire about 17% of its employees by the end of the year. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Budget crunch a threat to defense spending, whoever wins White HousePentagon cutbacks could take several years to unfold, but Southern California's aerospace industry could be hit particularly hard.Election day may signal bad news ahead for Southern California's biggest private employers -- aerospace giants Boeing Co. and Northrop Grumman Corp. -- no matter who wins today. ¶ With a financial crisis pinching federal coffers and deep cuts in federal spending looming, multibillion-dollar weapons purchases could take a serious hit. Neither candidate has outlined Pentagon cuts for fear of losing votes, but industry officials and analysts believe an eight-year boom in military spending is about to end. ¶ "No matter which party takes control of the White House in January, we will likely see defense spending fall off," said Ronald Epstein, aerospace analyst for Merrill Lynch. "The current historically high budget for defense is not sustainable, especially as the federal budget will be straining from the recent financial bailout." Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Gasoline prices plunge below $2 a gallon in parts of U.S.Nationally, the average price for self-serve regular has fallen 25.6 cents to $2.40 a gallon over the last week, while in California it's down 34.7 cents to $2.783.The retail gasoline industry was facing the kind of crisis Monday that motorists love. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Redstone suggests he might sell theaters to raise cashNational Amusements has a big debt payment looming and the media mogul says he won't dump more Viacom or CBS stock.Sumner Redstone hinted Monday that he might sell his family's movie theaters to fix his pressing debt problems. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am Schwarzenegger seeks tax breaks for movie and TV productionThe proposal aims to keep show business in California. Lawmakers have rejected similar plans.Gov. Arnold Schwarzenegger wants millions of dollars in tax breaks for film and television companies that shoot productions in California, according to a copy of the proposal obtained by The Times. Source: L.A. Times - Business | 4 Nov 2008 | 8:00 am RBS unveils capital plan as writedown hits £6.1bnRoyal Bank of Scotland (RBS) today revealed that the value of its assets has fallen by £6.1 billion this year as it "regretfully" laid out plans to raise £19.7 billion to prop up its balance sheet.Source: Latest Business News from Times Online | 4 Nov 2008 | 7:50 am M&S profits fall 34% on shrinking clothes salesMarks & Spencer said today that it was facing the most difficult conditions on the high street since the early 1990s after announcing a 34 per cent slide in half-year profits and unveiling plans to slash costs.Source: Latest Business News from Times Online | 4 Nov 2008 | 7:27 am Senior Apple executive to leave: report(Reuters) - One of Apple Inc's top executives, who was part of the development of the iPod, has decided to leave the company and will be replaced by a former employee of International Business Machine Corp, the Wall Street Journal said.Source: Reuters: Business News | 4 Nov 2008 | 7:17 am Senior Apple executive to leave: report (Reuters)Reuters - One of Apple Inc's top executives, who was part of the development of the iPod, has decided to leave the company and will be replaced by a former employee of International Business Machine Corp, the Wall Street Journal said.Source: Yahoo! News: Business | 4 Nov 2008 | 7:17 am Australian Stocks: Market closes marginally weakerPERTH - The Australian share market closed marginally weaker after a larger than expect interest rate cut by the central bank boosted the bourse back from earlier sharply lower levels. The benchmark S&P/ASX200 index was down 6.4...Source: New Zealand Herald - Business | 4 Nov 2008 | 7:05 am Currency: Dollar loses ground after RBA rate cutThe New Zealand dollar continued to slip late today as a surprisingly large rate cut in Australia pushed the currencies down on both sides of the Tasman. By 5pm, the kiwi was at US58.70c, down from US59.27c late yesterday afternoon....Source: New Zealand Herald - Business | 4 Nov 2008 | 6:11 am Treasury weighs purchasing stakes in more firms: report(Reuters) - The U.S. Treasury Department is considering using more of its $700 billion rescue fund to buy stakes in a broad range of financial companies, not just banks and insurers, after tentative signs of the program's success, the Wall Street Journal said, citing people familiar with the matter.Source: Reuters: Business News | 4 Nov 2008 | 5:58 am Treasury weighs purchasing stakes in more firms: report (Reuters)
Source: Yahoo! News: Business | 4 Nov 2008 | 5:58 am NZ stocks: Shares in the red after quiet sessionThe sharemarket turned its back on this morning's small gain, ending in the red after a quiet session. The benchmark NZSX-50 index closed down 12.35 points, or 0.4 per cent, at 2844.31. The index received a 35-point boost yesterday...Source: New Zealand Herald - Business | 4 Nov 2008 | 5:41 am Record fall in commodity price index - dairy down nearly 10pcNew Zealand's commodity price gauge fell by a record 7.4 per cent to an 18-month low in October. The ANZ Commodity Price Index had its largest decline last month since it was launched in 1986, and was down nearly 11 per cent on...Source: New Zealand Herald - Business | 4 Nov 2008 | 4:15 am Wall St says cash aid will not go on bonusesWall Street firms will pledge not to use the recent $125bn cash infusion from the US government to pay bankers' bonuses in an effort to defuse the mounting political furoreSource: FT.com - US homepage | 4 Nov 2008 | 1:45 am Govt investment losses higher than expected - EnglishInvestment losses unveiled in today's crown accounts are higher than expected but the overall plunge into the red is in line with predictions, National's finance spokesman Bill English says. The government's financial statements...Source: New Zealand Herald - Business | 4 Nov 2008 | 1:30 am Sirius (SIRI): With Half Of Subscriptions From Car Companies, Satellite Radio Heads To Oblivion
Operating losses and crushing debt already threaten the firm's future. Lead by a 45% drop at GM, domestic US vehicles sales fell by a third in October to 838,186 vehicles. There is not much relief in sight between now and sometime late in 2009. That is an optimist's view. Sirius shares slipped to $.31 today, down from a 52-week high of $3.94. With the American auto business in deepening trouble, it us hard to see how Sirius remains an independent operation for more than another quarter. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 1:04 am Dire news from Briscoe, Hallenstein GlassonsNews from the retail sector keeps getting worse, as Briscoe and Hallenstein Glasson this morning both reporta big fall in sales. Retailer Briscoe Group says third quarter sales fell 11.2 per cent from a year earlier to $77.8 million,...Source: New Zealand Herald - Business | 4 Nov 2008 | 1:00 am Wall Street amazes self with day of astounding dullnessSource: L.A. Times - Business | 4 Nov 2008 | 12:58 am Obama and McCain in final pushBarack Obama and John McCain wound up their presidential campaigns in a whirlwind of rallies and speeches even as new data underlined the scale of the economic crisis awaiting the winnerSource: FT.com - US homepage | 4 Nov 2008 | 12:43 am New Yahoo! (YHOO) Deal With Google (GOOG): Saving Face, Little Value
Yahoo! would have significantly benefited from the arrangement. Google's search mechanism works better than Yahoo!'s and yields higher ad revenue. But, with Google holding 65% of the US search market and Yahoo! holding 20%, it looked like an antitrust problem from the start. Advertisers assumed that the marriage would cause rates to rise, and they were almost certainly right. Yahoo! and Google submitted a new proposal to the government, but it is so watered down that the financial benefits for Yahoo! are almost gone. According to The Wall Street Journal, "But under the revision, the companies agreed to cap the revenue Yahoo can generate from the deal to 25% of Yahoo's search revenue and to shorten the length of the agreement to two years from up to 10 years." Most of Yahoo!'s revenue comes from display advertising, a segment of the industry which is no longer growing rapidly. The value of the Google search partnership is that it is essential to getting Yahoo! further into the one portion of internet marketing which is still growing.quickly. The 25% cap takes most of that potential advantage away. Justice may still turn down a Yahoo! sales arrangement with Google, but from the standpoint of revenue benefit to Yahoo!, there is not much left to turn down. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Nov 2008 | 12:42 am After The Close - MondayPEPCO (POM), a supplier of energy and natural gas, said its Q3 EPS fell 13.2% to 59 cents, missing views by 11 cents. Revenue rose 10.5% to $3.06 bil.Source: Investor's Business Daily: BUSINESS | 4 Nov 2008 | 12:16 am Trends & Innovations - MondayCameras make stealing key a snapSource: Investor's Business Daily: BUSINESS | 4 Nov 2008 | 12:16 am In Brief - MondaySysco (SYY), a food distributor, said its Q1 EPS rose 7% to 46 cents, missing views by a penny. Revenue rose 5% to $9.88 bil, in line with views.Source: Investor's Business Daily: BUSINESS | 4 Nov 2008 | 12:16 am Maker Of Snack Nuts Tries Its Hand With Microwave Popcorn BrandCan Diamond Foods use the same recipe to spice up popcorn as it did to crack the snack nut market?Source: Investor's Business Daily: BUSINESS | 4 Nov 2008 | 12:16 am Business Briefs - MondayMasterCard beats, shares climb. The world's second-largest credit card company said after hours that its Q3 EPS rose 37% to $2.47 ex items,...Source: Investor's Business Daily: BUSINESS | 4 Nov 2008 | 12:16 am Consultancy sounds warning over KiwiSaver taxKiwiSaver investors will pay more tax on their investment earnings than the incentives given to them by the Government unless the rates are lowered, an investment consultancy firm has warned. Mercer, which advises institutional...Source: New Zealand Herald - Business | 4 Nov 2008 | 12:00 am Google, Yahoo revise dealRead full story for latest details.Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 11:58 pm KKR blames regulatory issues for IPO delayKohlberg Kravis Roberts on Monday delayed its New York listing, planned for this year, in one of the clearest indications of how the tide has turned against the private equity industrySource: FT.com - US homepage | 3 Nov 2008 | 11:35 pm Goldman fund loses $990m after 10 monthsOne of Goldman Sachs's flagship hedge funds, run by two of the Wall Street bank's most talented traders, has lost close to $1bn since its launch in January in further evidence of the crisis facing the industrySource: FT.com - US homepage | 3 Nov 2008 | 11:31 pm Retail investors push trading to record levelsUS retail investors have been trading stocks and options at record levels in recent months, apparently responding to the financial crisis by taking greater control of their own investments - to the benefit of such companies as TD Ameritrade, Charles Schwab and FidelitySource: FT.com - US homepage | 3 Nov 2008 | 11:31 pm Concern over shipping derivatives lossesFears are growing in the shipping industry over big losses that could emerge this week on derivatives triggered by the October collapse in charter rates for dry bulk shipsSource: FT.com - US homepage | 3 Nov 2008 | 11:31 pm Gold fails to shine like gold bugs hopedNEW YORK - For years, investors known as gold bugs snapped up the metal and socked it away, betting that a colossal economic crisis would one day slam financial markets and send gold prices through the roof. For many investors,...Source: New Zealand Herald - Business | 3 Nov 2008 | 11:30 pm Sumner Time, and the Earnings Are WretchedAmid a messy divorce, painful margin calls, rumors of layoffs, and plummeting stock prices for his public media conglomerates Viacom and CBS, Sumner Redstone had another tough day.Viacom earnings fell 37 percent, to $401 million, or 65 cents a share, in the third quarter, from $641 million in the same quarter of 2007. C.E.O. Philippe Dauman blamed the decline on "the economic environment and ongoing uncertainty." "Viacom has not been immune to the impact of these forces," he said in the company's earnings release. The drop in earnings is partly attributable to the softer advertising market, which has affected every large media conglomerate. Third-quarter revenue still managed to creep up over the same period last year, growing 4 percent to $3.41 billion. In part, this was due to strong sales of the musical videogame Rock Band. Home-entertainment revenues were propped up by this quarter's release of Iron Man on DVD. As for the company's cable networks, they continue to be successful. The earnings release pointed to popular and profitable shows, including The Hills on MTV, The Daily Show with Jon Stewart on Comedy Central, and SpongeBob SquarePants on Nickelodeon, as setting records for viewership and building audience loyalty, although specific numbers weren't offered. Redstone may be leaving his wife, feuding with his daughter, and selling stock in the credit crunch, but at least he can count Lauren, Heidi, Jon, and SpongeBob as friends. Related Links Strike Watch: Welcome To (Grim) Reality Crunch Time for Sumner Mel and Sumner, Together Again Source: Portfolio.com: Top 5 | 3 Nov 2008 | 11:00 pm Posen Says U.S. to Issue More Bonds to Finance BailoutsSource: Bloomberg - All Podcasts | 3 Nov 2008 | 10:58 pm Recession rears ugly head, global auto sales shrink (Reuters)
Source: Yahoo! News: Business | 3 Nov 2008 | 10:52 pm Primo Says Neither Candidate to Reduce Government SpendingSource: Bloomberg - All Podcasts | 3 Nov 2008 | 10:45 pm NZ Shares: Small early rise for sharemarketThe New Zealand sharemarket started the day with a small rise, after United States' equities had their calmest session in recent times. Around 10.15am the benchmark NZX-50 index was up 10.78 points to 2867.44, having risen 35.8...Source: New Zealand Herald - Business | 3 Nov 2008 | 10:44 pm VIX Index of U.S. Stock Option Prices Retreats 10.4% to 53.68Source: Bloomberg - All Podcasts | 3 Nov 2008 | 10:43 pm International Awareness of Global Warming Prompts New ETFSource: Bloomberg - All Podcasts | 3 Nov 2008 | 10:41 pm Bailout? Some banks say, 'No thanks'Not every U.S. financial company is running to the government for help.Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 10:36 pm Hard times in Detroit as sales hit rock bottomDETROIT - US auto sales dropped to their lowest level in more than 17 years last month as consumers frightened by Wall Street turmoil stayed away from showrooms, prompting some auto company executives to predict dire consequences...Source: New Zealand Herald - Business | 3 Nov 2008 | 10:30 pm Auto sales worst in 25 yearsTight credit and worried consumers resulted in the weakest pace of U.S. auto sales in 25 years.Source: Business and financial news - CNNMoney.com | 3 Nov 2008 | 10:14 pm Wall St cautious on grim manufacturing dataWall Street stocks on Monday enjoyed the tamest swing since the nationalisation of mortgage giants Fannie Mae and Freddie Mac in the summer, escaping the wild volatility of recent sessionsSource: FT.com - US homepage | 3 Nov 2008 | 9:55 pm US car sales sink to lowest level for 25 yearsLight vehicle sales break record-lows in early 1983, plummeting to an annual rate of 10.6m units in October, as generous discounts fail to offset falling consumer confidence and scarce creditSource: FT.com - US homepage | 3 Nov 2008 | 9:40 pm Wal-Mart Raised to `Overweight' From `Neutral' at JPMorganSource: Bloomberg - All Podcasts | 3 Nov 2008 | 9:30 pm Holtz-Eakin Says Obama Unable To `Nail Down' Independent VotersSource: Bloomberg - All Podcasts | 3 Nov 2008 | 9:27 pm Casesa Says 3% of GDP Spent on Autos Is Lowest in 50 YearsSource: Bloomberg - All Podcasts | 3 Nov 2008 | 9:06 pm Disappearing act: Those huge 2003-07 foreign stock gainsSource: L.A. Times - Business | 3 Nov 2008 | 8:20 pm Obama Won't Fail Like Kerry in 2004, Devine SaysSource: Bloomberg - All Podcasts | 3 Nov 2008 | 8:14 pm Columbia's Stiglitz Says Crisis Is Worst Since DepressionSource: Bloomberg - All Podcasts | 3 Nov 2008 | 8:01 pm Levitt Says TARP Misuse `Inevitable,' Sees Bank FailuresSource: Bloomberg - All Podcasts | 3 Nov 2008 | 7:18 pm Publishers rush to get crisis books outAs readers hunger for information about the financial crisis, publishers are hurrying to get new business books on the table. And old ones, too. Sally Herships learns that's not so easy to do.Source: Marketplace | 3 Nov 2008 | 7:00 pm Getting serious about human wasteThe subject of human waste doesn't come up much. Too icky. But a new book warns of the perils of ignoring the subject. Kai Ryssdal talks with Rose George, author of "The Big Necessity."Source: Marketplace | 3 Nov 2008 | 7:00 pm The growing market for political futuresForget the Gallup Poll and the shouting heads on MSNBC and Fox. Go to InTrade.com, a so-called "prediction market" with a record of calling races. Kai Ryssdal asks two political experts about gambling on politics.Source: Marketplace | 3 Nov 2008 | 7:00 pm Credit card crisis on the horizonNext up in financial crisis headlines: credit cards. Delinquencies on card payments are on the rise and consumers are cutting back on credit card use. Neither is good for credit card companies. Rachel Dornhelm reportsSource: Marketplace | 3 Nov 2008 | 7:00 pm Is the ethanol industry tanking?Ethanol's future as alternative fuel isn't looking so bright right now. Goldman Sachs has abandoned analysis of the industry and the largest publicly traded producer has filed for bankruptcy protection. Steve Henn has more.Source: Marketplace | 3 Nov 2008 | 7:00 pm Financial crisis is spoiling organicsOrganic food might be good for your health but, as a consumer, it's not so good for your budget. High-end Whole Foods market is cutting expansion plans in response to a more frugal shopping public. Mitchel Hartman reports.Source: Marketplace | 3 Nov 2008 | 7:00 pm More and more banks want in on bailoutIf the bailout made some banks uneasy at first, they got over it. Thousands of banks are lining up for the funds now. Steve Henn reports the idea of using the money to buy other banks is a motivator.Source: Marketplace | 3 Nov 2008 | 7:00 pm Europe dragged down by weak UKEurope's economic growth will grind almost to a halt next year, dragged down by a weak UK, but the continent will fare better than the US, according to the European CommissionSource: FT.com - US homepage | 3 Nov 2008 | 6:25 pm Detroit Needs a MiracleWhat does it take for a car company to be able to tap the debt markets for capital these days?Being the manufacturer of a $109,000 electric car, evidently. Tesla Motors, the startup carmaker backed by the hugely successful internet entrepreneur Elon Musk, raised $40 million in convertible debt to help boost its dwindling cash position. Tesla, which has delivered 50 of the luxury electric cars so far this year, was forced to tap the debt markets after plans for an initial public stock offering were foiled by the economic crisis. Private commitments for the $40 million include most of Tesla's major existing investors. Meanwhile, General Motors, maker of the $13,000 Chevy Aveo, among others, was denied access to capital from the Treasury Department under its $700 billion banking bailout plan, according to the New York Times. The automaker had requested $10 billion in government financing to help it merge with the equally troubled Chrysler. Instead, the administration plans to offer $25 billion in low-interest loans to Detroit's Big Three to help finance manufacturing of fuel-efficient cars. Moreover, Bloomberg reports that, in October, Ford, G.M.A.C., and Chrysler were shut out of the bond market for auto-backed loans for the fifth consecutive month. Last month, $500 million worth of auto bonds sold, compared to $9 billion in the same month last year. If the automakers can't finance loans, they won't sell cars. It's a sordid tale of two car companies: G.M. and Tesla. In an economic recession, it would seem that cheap cars would be in higher demand and astronomically luxurious autos would be hurting. For its part, Tesla hasn't been immune from the downturn. It just happens to have willing and wealthy investors who continue to believe in it. Last month, the company cut nearly a quarter of its full-time workers and delayed production of a less-glitzy $60,000 electric car. And, let's be honest here, a $40 million loan for G.M. would likely be gone after one week's worth of health-insurance payments. General Motors doesn't need $40 million to survive. It needs a miracle. And October sales figures won't help that miracle play out anytime soon. U.S. sales of light trucks and vehicles at G.M. fell by 45 percent over last year. Ford's fell by 30 percent. Related Links Who Will Survive? Drive Time in D.C. Big Green Machines Source: Portfolio.com: Top 5 | 3 Nov 2008 | 5:00 pm Circuit City closing 155 storesThe consumer electronics chain provided more evidence of the downturn in US retailing when it unveiled plans to cut more than 7,000 jobs and begin liquidation sales at a fifth of its stores as it tries to stay afloatSource: FT.com - US homepage | 3 Nov 2008 | 4:44 pm A Big Box Tries SmallAs the slump in consumer spending crushes one retailer after another, Circuit City has been widely considered the next victim as its liquidity position worsens.Scrambling to avoid bankruptcy, the electronics chain has announced that it will close 155 stores in the United States and "aggressively" renegotiate leases on some of the remaining 566 stores with the aim of lowering rents. The closings mean that it will cut its workforce by 17 percent. The chain is buffeted not only by a weak economy but also by increased competition in electronics from Wal-Mart and Best Buy. "Since late September, unprecedented events have occurred in the financial and consumer markets causing macroeconomic trends to worsen sharply," said James Marcum, the chief executive of Circuit City. "The weakened environment has resulted in a slowdown of consumer spending, further impacting our business, as well as the business of our vendors. The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult but necessary decisions to address the company's financial situation as quickly as possible." Compounding the chain's liquidity problems is its inability to collect a tax refund of $80 million from the federal government. In its September conference call, the company said "an unexpected and frankly disappointing administrative issue" was delaying the refund. It's strange that at a time when the federal government is handing out billions of dollars to other industries, it may be dragging its heels in returning millions of dollars to another troubled business. Related Links Pulling the Plug at Circuit City Last Bytes: Android, Verizon, SanDisk, Circuit City Retailers Hurt by Locked Pocketbooks Source: Portfolio.com: Top 5 | 3 Nov 2008 | 2:30 pm Barbarians Must WaitIn 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
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