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Here's your tutu, Mr. GovernorSchwarzenegger discovers budget reality a bit lateJust four years ago, Gov. Arnold Schwarzenegger wagged his finger at the Republican National Convention and declared, "To those critics who are so pessimistic about our economy, I say: 'Don't be economic girlie men!' " Source: L.A. Times - Business | 9 Nov 2008 | 8:00 am How I bought a foreclosed houseThere were pitfalls on the the way, but an L.A. Times reporter found that research, strategy and being free of loan baggage helped.I did not set out to buy a foreclosed house. ¶ Earlier this year, I wrote about selling my condominium unit in 2005 to rent, rejecting the hyped promise of an always-rising real estate market. Now I've purchased a foreclosed home -- but that doesn't mean I've bought into the new wave of hype in real estate, the idea that cheap, repossessed houses are a sure bet. ¶ There's usually good reason many foreclosed houses languish with no buyers. They may be badly damaged or situated in places that seemed attractive only in the frenzy of a real estate bubble. ¶ The foreclosure inventory is loaded with properties far from job centers, stripped or even vandalized by previous owners or in abandoned developments with no parks, schools or even neighbors nearby. ¶ As a result, finding a decent house amid the wreckage of the real estate crash can be a long, tedious process. Then, actually buying one can also be tricky. When a foreclosed house in good shape and in a desirable location gets to market, it often attracts multiple offers, even in this struggling real estate market. Source: L.A. Times - Business | 9 Nov 2008 | 8:00 am Kosher treats with a French flavorThe gig: Owner of Delice Bakery, a French-style kosher bakery that opened on Pico Boulevard in 2001, and owner of Delice Bistro, which opened next door this year and features French and organic kosher cuisine.Source: L.A. Times - Business | 9 Nov 2008 | 8:00 am Auto Review: 2009 Lincoln MKS AWDThe 2009 Lincoln MKS will appeal to traditional, older Lincoln customers. But instead of taking the segment forward, one song came to mind repeatedly during our drives in the MKS: The Carpenters’ “It’s Yesterday Once More.”Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 11:00 am Banking veterans want HBOS top jobsLloyds TSB's £18 billion takeover of HBOS faced a dramatic challenge today when two Scottish banking industry veterans urged HBOS shareholders to kick out the bank's management, install them as chairman and chief executive, and reject the Lloyds deal.Source: Latest Business News from Times Online | 8 Nov 2008 | 10:54 am Obama seeks stimulus as jobs die, carmakers bleedNEW YORK (Reuters) - President-elect Barack Obama called for urgent passage of a stimulus package to reinvigorate a faltering economy that saw unemployment hit a 14-year high on Friday while U.S. automakers reported billions in losses.Source: Reuters: Business News | 8 Nov 2008 | 9:43 am Robert PestonNew challenge mounted to HBOS takeover dealSource: BBC News | Business | World Edition | 8 Nov 2008 | 9:26 am Bank duo oppose Lloyds-HBOS dealThe ex-chiefs of Bank of Scotland and Royal Bank of Scotland write to HBOS saying it should remain independent.Source: BBC News | Business | World Edition | 8 Nov 2008 | 9:17 am O.C. hospitals CEO Bruce Mogel steps down after internal probeThe resignation may bring new turmoil to Integrated Healthcare, which runs hospitals including Western Medical Center-Santa Ana and Chapman Medical Center in Orange.An Orange County executive has resigned after an internal investigation into his employment background and other activities, threatening new turmoil in the management of four major regional hospitals. Source: L.A. Times - Business | 8 Nov 2008 | 8:00 am O.C. hospitals CEO Bruce Mogel steps down after internal probeThe resignation may bring new turmoil to Integrated Healthcare, which runs hospitals including Western Medical Center-Santa Ana and Chapman Medical Center in Orange. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Shari Redstone resigns as chairwoman of Midway GamesShe says she must focus on talks to restructure the massive debt that threatens National Amusements, the media family's holding company. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Unemployment rate hits 6.5%, a 14-year highMore big job losses in October paint a picture of recession. The credit crisis has eased, but the bad news for...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am GM reports running low on cash; it ends Chrysler merger talksGeneral Motors posts a $2.5-billion third-quarter net loss. It also signals that it may have only enough cash to fund operations through year's end, leading to speculation about bankruptcy. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Unemployment rate hits 6.5%, a 14-year highMore big job losses in October paint a picture of recession.The credit crisis has eased, but the bad news for the American worker may just be beginning. Source: L.A. Times - Business | 8 Nov 2008 | 8:00 am To some investors, Obama means riskHow much does Wall Street really fear Barack Obama?Source: L.A. Times - Business | 8 Nov 2008 | 8:00 am GM reports running low on cash; it ends Chrysler merger talksGeneral Motors posts a $2.5-billion third-quarter net loss. It also signals that it may have only enough cash to fund operations through year's end, leading to speculation about bankruptcy.Posting another multibillion-dollar quarterly loss Friday, General Motors Corp. said it was "cutting to the bone" but may run out of money by early next year without help from the federal government. Source: L.A. Times - Business | 8 Nov 2008 | 8:00 am To some investors, Obama means riskHow much does Wall Street really fear Barack Obama?Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Stocks rise after two days of heavy sellingNEW YORK -- Buyers returned to Wall Street today after two days of heavy losses, mindful of the economy's growing problems but attracted by stocks' lower prices. Analysts said the advance, which also came...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Music gear maker Groove Tubes is closing after nearly 30 yearsThe San Fernando manufacturer, which was sold to industry giant Fender Musical Instrument Corp. in June, is closing its inventory sale Saturday. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Stocks end week with gains after two days of heavy sellingMajor indexes climb more than 2% despite an array of depressing news. The Dow ends up 248 points at 8,943. Stocks...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 8:00 am Regulators shut banks in Texas, CaliforniaRegulators shut down Houston-based Franklin Bank and Security Pacific Bank in Los Angeles on Friday, bringing the number of failures of federally insured banks this year to 19. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 6:29 am 2 insurers reject government bailout helpTwo insurance companies have said they will not participate in the government's rescue program to directly invest billions in financial companies. Some insurers likely would be eligible...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 5:50 am Parents pull kids from day care as money tightensThe nation's economic troubles play out one family at a time at the New Horizons Learning Center in this struggling city two hours northwest of Chicago. Some parents have been laid off...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 5:44 am Market Snapshot: Economy, Obama picks will likely dominate data-light weekThe economy and the next U.S. president's plans to fix it will likely dominate markets in the coming week.Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 5:01 am In England, Fans Buy the Ultimate Fantasy TeamHow a virtually unknown soccer team, Ebbsfleet United, went on to become the object of one of the worlds most unusual sports experiments and ended up with 31,000 owners.Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 4:44 am Obama seeks stimulus as jobs die, carmakers bleed (Reuters)
Source: Yahoo! News: Business | 8 Nov 2008 | 4:39 am Turkey Tries to Resist Aid From I.M.F.Turkey is faced with the awkward prospect of being forced to accept stringent fiscal conditions to obtain I.M.F. money to replace its disappearing private capital.Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Nov 2008 | 4:33 am Oil rises as U.S. jobs data hits dollarNEW YORK (Reuters) - Oil rose slightly on Friday as the dollar slumped following bleak employment data in the United States, the world's top energy consumer.Source: Reuters: Business News | 8 Nov 2008 | 4:32 am Hyundai Motor denies interest in Chrysler assetsSEOUL (Reuters) - South Korea's Hyundai Motor Co on Saturday denied its interest in Chrysler's assets, adding it had no capacity for a new acquisition as it focused on completing construction of overseas plants.Source: Reuters: Business News | 8 Nov 2008 | 4:22 am Hyundai Motor denies interest in Chrysler assets (Reuters)
Source: Yahoo! News: Business | 8 Nov 2008 | 4:22 am Momentum grows for global finance overhaulUS president-elect Barack Obama vowed Friday to tackle the financial crisis head-on when he takes office, as momentum elsewhere in the world grew for overhauling the world financial system.Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 4:08 am Oil rises as U.S. jobs data hits dollarNEW YORK (Reuters) - Oil rose slightly on Friday as the dollar slumped following bleak employment data in the United States, the world's top energy consumer.Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 3:52 am Two insurers reject government aidTwo insurance companies have said they will not participate in the government's rescue program to directly invest billions in financial companies. Some insurers likely would be eligible...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 3:34 am Hyundai Motor denies interest in Chrysler assetsSEOUL (Reuters) - South Korea's Hyundai Motor Co on Saturday denied its interest in Chrysler's Jeep brand and other assets, adding it had no capacity for a new acquisition as it focused onSource: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 3:06 am PetroChina says to hold investments steady in '09BEIJING, Nov 8 (Reuters) - PetroChina ,Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 2:48 am 2 more banks go belly-upThe tally of failed banks in 2008 rose to 19 as the government announced that a Texas and a California bank had been shuttered Friday night.Source: Business and financial news - CNNMoney.com | 8 Nov 2008 | 2:35 am UPDATE 1-Oil supply "more than comfortable"-Saudi Aramco CEOlonger-term supplies, Saudi Aramco's chief executive was quotedSource: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 2:30 am Regulators shut banks in Texas, CalifRegulators shut down Houston-based Franklin Bank and Security Pacific Bank in Los Angeles on Friday, bringing the number of failures of federally insured banks this year to 19. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Nov 2008 | 2:13 am First dog will not be a pound puppyPresident-elect Barack Obama informs reporters at a packed press briefing that one campaign promise is proving more challenging than expected.Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 1:52 am Sotheby's Q3 loss balloons; plans restructuring (Reuters)Reuters - Sotheby's , the world's largest publicly traded auction house, posted a 55 percent rise in its quarterly loss, hammered by losses on auction guarantees, and lower private sales commissions and commission margins.Source: Yahoo! News: Business | 8 Nov 2008 | 1:49 am Sotheby's Q3 loss balloons; plans restructuring(Reuters) - Sotheby's , the world's largest publicly traded auction house, posted a 55 percent rise in its quarterly loss, hammered by losses on auction guarantees, and lower private sales commissions and commission margins.Source: Reuters: Business News | 8 Nov 2008 | 1:49 am Obama to tackle economy 'head-on'US President-elect Barack Obama pledges to confront the economic crisis immediately after taking office in January.Source: BBC News | Business | World Edition | 8 Nov 2008 | 1:32 am Top hedge fund managers 'funereal' in midst of financial crisisIn the midst of the worst financial crisis since the Great Depression, several top hedge fund managers sent a grim message to their investors in October: it isn't over.Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 1:32 am AT&T to buy rural phone co Centennial for $944 mlnNEW YORK (Reuters) - AT&T Inc plans to buy rural phone company Centennial Communications Corp for $944 million in cash to expand its wireless network in Puerto Rico and other regions of the United States.Source: Reuters: Business News | 8 Nov 2008 | 12:55 am GM and Ford losses, cash burn direDETROIT (Reuters) - General Motors Corp and Ford Motor Co reported far deeper-than-expected quarterly losses on Friday and said their rate of cash burn had accelerated, as an extended slump in car sales raised questions about the future of the U.S. auto industry.Source: Reuters: Business News | 8 Nov 2008 | 12:51 am Into The Wild Blue YonderIt's been a bumpy flight for the airline industry over the past decade.Source: Investor's Business Daily: BUSINESS | 8 Nov 2008 | 12:47 am In Brief - FridayAT&T (T), the giant telecom, said it will pay $944 mil in cash for Centennial Communications (CYCL), a regional provider of wireless and wired...Source: Investor's Business Daily: BUSINESS | 8 Nov 2008 | 12:47 am Device Maker Focuses On Niches Where There's No CompetitionYears ago, Dr. George Lopez's father gave his son an important piece of business advice: "The bigger they are, the harder they hit."Source: Investor's Business Daily: BUSINESS | 8 Nov 2008 | 12:47 am Business Briefs - FridayMicrosoft may woo away Verizon The software giant is seeking to lure away Verizon Wireless from an ad deal with search site Google, publishedSource: Investor's Business Daily: BUSINESS | 8 Nov 2008 | 12:47 am Trends & Innovations - FridayFlashy billboards draw attentionSource: Investor's Business Daily: BUSINESS | 8 Nov 2008 | 12:47 am Latin American Markets: Argentina shares fall as pension takeover moves forwardArgentine equities fall, diverging from advances throughout Latin America after a segment of Argentina's lawmakers approves a plan to take over privately run pensions.Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 12:43 am Franklin Bank taken over, the 18th failure this yearHouston-based Franklin Bank is closed by regulators, the 18th bank failure this year amid the ongoing credit crisis.Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 12:41 am AIG in talks with Fed over new bail-outAIGis asking the US government for a new bail-out less than two months after the Federal Reserve came to the rescue of the stricken insurer with an $85bn loan, according to people close to the situation.Source: FT.com - US homepage | 8 Nov 2008 | 12:36 am GM and Ford losses, cash burn dire (Reuters)
Source: Yahoo! News: Business | 8 Nov 2008 | 12:24 am Berkshire profit plunges 77%Warren Buffett's Berkshire Hathaway said that its third-quarter net earnings sank 77 per cent after it recorded heavy losses on the value of investments and derivatives and suffered a steep drop in insurance underwriting profitsSource: FT.com - US homepage | 8 Nov 2008 | 12:24 am Levitt Says SEC Lost Its `Bite' Under Cox, Needs `Spine'Source: Bloomberg - All Podcasts | 8 Nov 2008 | 12:18 am Seetharaman Says Doha Bank Will Meet Full-Year TargetsSource: Bloomberg - All Podcasts | 8 Nov 2008 | 12:12 am Stocks to Watch: Stocks in focus for MondayAmong the companies whose shares are expected to see active trade in Monday's session are American International Group Inc., Starbucks Corp., and Tyson Foods Inc.Source: MarketWatch.com - Top Stories | 8 Nov 2008 | 12:04 am Need to know: Aer Lingus vote ... Rentokil falls ... Tata closuresView video and Need to Know interactive heatmapSource: Latest Business News from Times Online | 8 Nov 2008 | 12:03 am Corporate insolvency rises sharplyThe number of companies going bankrupt jumped sharply between July and September and is set to rise farther, experts said yesterday.Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Setback for Government's green agenda as BP quits key projectsGovernment plans for Britain to become a world leader in clean energy technology suffered a double setback yesterday after BP said that it was abandoning the country's wind energy industry and pulling out of a competition to build a demonstration carbon-capture and storage plant.Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Warren Buffett's investment firm Berkshire Hathaway reports huge lossesBerkshire Hathaway, the investment firm run by Warren Buffett, the world’s richest man reported a 77 per cent drop in third-quarter profits, as a $1.01 billion loss on derivatives and other investments combined with sharply reduced results from its operations across the board.$Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Obama to review Wall St bail-outBarack Obama used his first public remarks since his election to say he would review the details of George W. Bush's $700bn Wall Street bail-out and call for the urgent enactment of a second fiscal stimulus package to help revive the rapidly deteriorating economySource: FT.com - US homepage | 8 Nov 2008 | 12:00 am BA has a bumpy landing with 92% profit dropBritish Airways highlighted the wider impact of the economic crisis yesterday when it reported a 92 per cent fall in first-half profits as it suffered the twin blows of record high fuel prices and a sharp fall in the number of business-class passengers.Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Speed of the job cuts is the real surpriseYour starter for ten: when was the last time the rate of inflation was above the base rate? I confess I guessed 1991, when we were last in real trouble and the Bank was frantically chasing rising inflation with rising interest rates.Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Bankers still do not have a shred of decencyThere is a mood abroad, put forward by the banks' spinners and spokesweasels, that the demigods who have almost destroyed the banking system through their greed, arrogance and hubris have suffered enough. Time to lay off, be a bit kinder, their share options worthless, broken men, etc, etc...Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am 'Porsche's wily hedging' fuels profit surgePorsche confirmed its newly won reputation as a successful hedge fund that turns out a few luxury sports cars yesterday by announcing a remarkable 51 per cent surge in net profits for the year to July.Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Last hurrah for a Microsoft move on Yahoo!Steve Ballmer, chief executive of Microsoft, moved quickly yesterday to dismiss speculation that the software group may still be interested in a takeover of Yahoo!.Source: Latest Business News from Times Online | 8 Nov 2008 | 12:00 am Berkshire Hathaway's profit falls 77%Read full story for latest details.Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 11:56 pm Consumers unexpectedly borrowed more in September (AP)
Source: Yahoo! News: Business | 7 Nov 2008 | 11:55 pm Brazil oilfield may house '100bn barrels'Brazil's newly discovered "pre-salt" oilfields may contain more than 100bn barrels, said the head of the country's industry regulatorySource: FT.com - US homepage | 7 Nov 2008 | 11:55 pm Year of the bailout - and now GM?The government has stepped in with nearly $125 billion to try and stabilize AIG. The nation's banks are tapping even more. Now General Motors wants its own bailout.Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 11:54 pm Stocks eye bleak retail data, Treasury pickNEW YORK (Reuters) - The grim view on consumer spending could get worse next week as investors parse a government report on retail sales and earnings from Wal-Mart Stores Inc , while waiting with bated breath for President-elect Barack Obama's pick for U.S. Treasury secretary.Source: Reuters: Business News | 7 Nov 2008 | 11:48 pm Stocks eye bleak retail data, Treasury pick (Reuters)
Source: Yahoo! News: Business | 7 Nov 2008 | 11:48 pm Berkshire Hathaway profit tumbles 77 percent (Reuters)Reuters - Warren Buffett's Berkshire Hathaway Inc (BRKa.N)(BRKb.N) said on Friday third-quarter profit fell 77 percent, the fourth straight quarterly decline, hurt by weaker results from insurance underwriting and a big loss on derivatives contracts.Source: Yahoo! News: Business | 7 Nov 2008 | 11:46 pm Berkshire Hathaway profit tumbles 77 percentNEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc said on Friday third-quarter profit fell 77 percent, the fourth straight quarterly decline, hurt by weaker results from insurance underwriting and a big loss on derivatives contracts.Source: Reuters: Business News | 7 Nov 2008 | 11:46 pm To Live & Buy in L.A.: Tips for holiday shopping on a budget.Source: L.A. Times - Business | 7 Nov 2008 | 11:35 pm After Hours: MBIA drops after ratings cut; AT&T gains after telecom dealA ratings cut sends shares of MBIA Inc. tumbling, and AT&T Inc. edges higher after the telecommunications heavyweight says it would purchase a regional telecom services provider for more than $900 million.Source: MarketWatch.com - Top Stories | 7 Nov 2008 | 11:34 pm Ford, GM announce huge lossesDETROIT, Michigan - US carmaker General Motors said it lost US$2.5 billion in the third quarter and warned that it could run out of cash in 2009 if the U.S. economic slump continues and it doesn't get government aid. GM also said...Source: New Zealand Herald - Business | 7 Nov 2008 | 11:25 pm Unemployment Surges, Auto Losses, Credit Crunch Hits GolfSource: Bloomberg - All Podcasts | 7 Nov 2008 | 11:19 pm On the Ball: Greg Norman's Pursuits, Marbury's PredicamentSource: Bloomberg - All Podcasts | 7 Nov 2008 | 11:17 pm USG cuts 900 jobs as economy deterioratesNEW YORK (Reuters) - U.S. building materials maker USG Corp said on Friday it was cutting around 900 jobs, or 20 percent of its salaried positions.Source: Reuters: Business News | 7 Nov 2008 | 11:16 pm Revisiting the Great DepressionAs we continue our coverage of the financial crisis, we look back to the Great Depression. Reporter Jaime Bedrin sat down with her grandmother who lived through it.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm The latest on reverse mortgagesIf you're 62 or older and the stock market is eating your retirement, there are still options open to you. Host Scott Jagow asks Meg Burns of the FHA about reverse mortgages.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm From homeowner to landlordAs finances get tighter, some homeowners are finding the only way to make ends meet is to welcome some new neighbors by renting out their own homes. Marianne Russ reports.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm Day in the Work Life: Food stamp advocateOn this week's "A Day in the Work Life," we meet Amy Grassett, a food stamp advocate who helps struggling Americans find their next meal.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm Here's what I'm doing: Chris GardnerMarketplace presents "Here's What I'm Doing," a series asking people from all walks of life how they're coping with the financial crisis. In this edition, Chris Gardner.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm Getting PersonalEconomics editor Chris Farrell and host Scott Jagow take questions on boosting morale in the office, microfinance, and paying for college.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm Businesses prep for new managementHost Scott Jagow asks to a business owner from each side of the political aisle how they're adapting their companies in anticipation of President-elect Obama's economic plans.Source: Marketplace Money | 7 Nov 2008 | 11:15 pm Straight Story: Saving and spendingEconomics editor Chris Farrell sets the story straight on the different ways individuals and the government should adjust their budgets to best weather the economic crisis.Source: Marketplace Money | 7 Nov 2008 | 11:14 pm Learning to live the temp lifeWith unemployment at 6.5 percent, many Americans are being forced to consider temp work to make ends meet. Some even turn it into a career of its own. Marketplace's Ashley Milne-Tyte reports.Source: Marketplace Money | 7 Nov 2008 | 11:14 pm Digging in to the Obama tax planNow that the election is over, it's time to get down to specifics. Host Scott Jagow asks Marketplace's Washington Bureau Chief John Dimsdale about the details of President-elect Obama's tax plan.Source: Marketplace Money | 7 Nov 2008 | 11:14 pm Global Insight's Behravesh Sees Unemployment at 8.5% in 2009Source: Bloomberg - All Podcasts | 7 Nov 2008 | 11:06 pm How Obama should fix the economyReal people across the country answer the question: How will Obama affect your wallet? And what do you think the new President and Congress needs to do to right the economy?Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:53 pm VIX Index of U.S. Stock Option Prices Retreats 11.9% to 56.10Source: Bloomberg - All Podcasts | 7 Nov 2008 | 10:53 pm Raymond James' McMahon Sees ETFs as `Tremendous Tool'Source: Bloomberg - All Podcasts | 7 Nov 2008 | 10:51 pm AT&T to buy Centennial for $944 millionAT&T Inc. says it plans to buy regional wireless provider Centennial Communications Corp. for $944 million in cash, in a bid to expand its coverage.Source: MarketWatch.com - Top Stories | 7 Nov 2008 | 10:51 pm Berkshire Hathaway quarterly net income falls 77%Berkshire Hathaway reports a 77% drop in third-quarter net income as the insurance-focused conglomerate recognizes more than $1 billion of unrealized derivative losses and paid hurricane claims.Source: MarketWatch.com - Top Stories | 7 Nov 2008 | 10:49 pm Stocks rallySource: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:47 pm GM: Nearly out of cashSource: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:38 pm 0.5%, here we comeWith today s awful October employment report, markets believe with near 100% certainty that the Federal Reserve will cut its benchmark short-term rate in half on or before policymakers next meeting DSource: L.A. Times - Business | 7 Nov 2008 | 10:34 pm T stands for TARP...and TroubleWhen the Treasury Department first unveiled its plan to buy stakes in banks last month, the move was heralded as a potential savior for fast-sinking banks and financial firms.Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:31 pm Your stories: Small companies cutting jobsSmall companies account for more than 40% of the nation's payroll - and as the economy worsens, their staffing cuts reverberate through local communities.Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:30 pm BofA captures Merrill's 'thundering herd'About 4,500 of the Merrill Lynch advisers who have been offered bonuses to stay with the group following its acquisition by Bank of America have agreed to stay onSource: FT.com - US homepage | 7 Nov 2008 | 10:11 pm Jobs lost in 2008: 1.2 millionThe government reported more grim news about the economy Friday, saying employers cut 240,000 jobs in October - bringing the year's total job losses to nearly 1.2 million.Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:10 pm Wall St shrugs off unemployment dataUS stocks brushed aside data that showed the US unemployment rate hit a 14-year high and fresh fears over the future of the country's automakers to recover some of their election week lossesSource: FT.com - US homepage | 7 Nov 2008 | 10:06 pm Kashkari: Bank bailout just beginningNeel Kashkari, the Treasury Department's point man for the bank bailout, said Friday he was encouraged by progress made thus far but acknowledged that more work lay ahead.Source: Business and financial news - CNNMoney.com | 7 Nov 2008 | 10:06 pm The layaway plan is backKnowing people have less cash in their wallets, some retailers are turning to old tricks to get shoppers spending money during the holiday season. Stacey Vanek-Smith has the story.Source: Marketplace | 7 Nov 2008 | 9:53 pm Wall St jumps on bargain hunting in volatile weekNEW YORK (Reuters) - U.S. stocks rose on Friday as bargain hunters scooped up shares at multiyear lows after a big drop in the October payrolls was less dire than feared.Source: Reuters: Business News | 7 Nov 2008 | 9:47 pm Gallup's Newport Sees Huge Shift in Party IdentificationSource: Bloomberg - All Podcasts | 7 Nov 2008 | 9:07 pm Obama's answer on tax increases, from his news conferenceSource: L.A. Times - Business | 7 Nov 2008 | 8:58 pm The 52-Week Low Club (GNW)(UIS)(SRZ)(GGP)(KOOL)(DPTR)
Unisys (UIS) No news but falls over 30% to $.79 from 52-week high of $7.90. Sunrise Assisted Living (SRZ) Large quarterly loss. Falls to $1.82 from 52-week high of $34.87. General Growth (GGP) Analayst downgrade still hurting. Falls to $1.91 from 52-week high of $51.24. THERMOGENESIS (KOOL) Product recall and quarterly loss. Falls to $.44 from 52-week high of $2.25. Delta Petroleum (DPTR) Offer to buy company falls through. Stock off to $3.89 from 52-week high of $28.37. Douglas A. McIntyre Source: 24/7 Wall St. | 7 Nov 2008 | 8:49 pm Obama's Plan of AttackIn his first press conference since Tuesday's historic election, President-elect Barack Obama promised swift action to address the economic crisis and to ameliorate the growing anxiety within the middle class but offered few specifics of what he would do.Flanked by his team of economic advisers, Obama pledged to take "all necessary steps to ease the credit crisis," as well as to extend jobless benefits for unemployed Americans and to press for a fiscal stimulus package to rekindle economic growth. He said he hoped that Congress would pass some stimulus plan before President Bush leaves office on January 20, but added that he would make it his top priority as president if that didn't happen. His stimulus plan would include tax cuts, infrastructure spending, and help for state and local governments in balancing their budgets and avoiding layoffs. In any case, he cautioned patience. "It's not going to be quick and it's not going to be easy to dig ourselves out of the hole we are in," he said, calling the current situation the "greatest economic challenge of a lifetime." He also took pains to note on several occasions that he is not yet president and will defer to Bush until his term expires. He sidestepped a question about whether he plans to follow through on his oft-repeated campaign pledge to raise taxes on people making more than $250,000 a year. Instead, he again spoke of a "net tax cut" designed primarily to benefit the middle class. "My priority is: How do we grow the economy and how do we create more jobs?" he said.Related Links Incentives for Inflation Will Obama Really Raise Taxes? It's (Really) the Economy, Stupid Source: Portfolio.com: Top 5 | 7 Nov 2008 | 8:30 pm Microsoft rules out Yahoo takeoverSteve Bullmer rules out a full acquisition of media rival, although he has left the door open to a deal that would involve a purchase of just its search businessSource: FT.com - US homepage | 7 Nov 2008 | 8:21 pm Las Vegas Sands seeks capital in AsiaSheldon Adelson, head of Las Vegas Sands, has met Singapore officials to discuss financing of the city state's first casino resort. The company is also in talks with other potential Asian investorsSource: FT.com - US homepage | 7 Nov 2008 | 7:53 pm Berkshire Hathaway Earnings Could Set Next Week's Trends (BRK-A, BRK-B, GS, GE, BNI)
There are technically two estimates from Thomson Reuters (First Call) with one at $1,425.00 and one at $1,433.38. Where this number really comes into play, well that is an entirely different topic. Berkshire Hathaway typically trades around the feel of the company's commentary more than on any single number. You also can't really use year-over-year comparisons because Mr. Buffett and friends had two hurricanes hit this year, and they did not have them in 2007 or 2006. As Mr. Buffett joked, the company was smart enough to not have hurricanes for two years running. What is different this time around is that Mr. Buffett has made many key investments. We will not likely get to see which companies he decided to invest in or which he decided to change his positions in. But we do know that billions have been invested into the following:
As a result of his comments on the bailout plan and his call to buy more stocks, we think he increased his equity holdings and this may be reflected in the net cash positions. Unfortunately, many of these investments were after the cut off date for the quarter so it will be hard to tell today. Here are his last formal holdings and here is a list of which stocks we think he increased his holdings in. We have also said that as part of the Obama transition team, Buffett and Berkshire Hathaway may be the biggest winner of the 2008 presidential election. Based upon all of the recent activities, we think today's Berkshire Hathaway numbers will be more important than in past quarters for the entire market. Imagine how bad financials would get treated if Mr. Buffett signals that he's getting slapped in the credit markets too..... That isn't likely, but anything seems possible now.
Jon C. Ogg Source: 24/7 Wall St. | 7 Nov 2008 | 7:52 pm US car giants report large lossesUS carmakers GM and Ford report hefty losses and both look to reduce their payrolls in order to cut expenses.Source: BBC News | Business | World Edition | 7 Nov 2008 | 7:44 pm Djerejian Says U.S. Needs Strategic Plan for Middle EastSource: Bloomberg - All Podcasts | 7 Nov 2008 | 7:25 pm Living alone's not so great right nowAh, getting that first apartment by yourself. No more living with parents or roommates. So grown up. But commentator Reihan Salam found out that having your own place has definite drawbacks.Source: Marketplace | 7 Nov 2008 | 7:08 pm Investing in poker futuresMore than $32 million is at stake in the 2008 Texas Hold 'em tournament. The odds of taking any of it home? 10%. Not so good when you can't afford to lose the $10,000 entry fee. Amanda Becker reports on how some players are getting around that.Source: Marketplace | 7 Nov 2008 | 7:08 pm Presidential plans and a downhill DowThe election of the first African-American president was a historic event. The financial crisis didn't take any time off, though. Scott Jagow recaps the week with Johs Worsoe of Union Bank and Jerry Seib of the Wall Street Journal.Source: Marketplace | 7 Nov 2008 | 7:07 pm Financial firms want bailout clarifiedNeel Kashkari of the Treasury is heading to a securities industry gathering to explain the Troubled Asset Relief Program. Some financial players are reluctant to apply because details are unclear. Ashley Milne-Tyte reports.Source: Marketplace | 7 Nov 2008 | 7:07 pm Job losses expected to keep climbingWith unemployment at 6.5%, those still employed are wondering how long their jobs will be safe. Nancy Marshall Genzer looks at the impact of high unemployment and asks if it will get worse.Source: Marketplace | 7 Nov 2008 | 7:07 pm Obama calls for swift stimulus packageIn his first news conference, President-elect Barack Obama called for swift action on the country's financial crisis. Host Scott Jagow asks Washington Bureau Chief John Dimsdale about Obama's road map for the economy.Source: Marketplace | 7 Nov 2008 | 7:07 pm GM warns of cash shortageCarmaker says that it will run out of the cash necessary for its business to function in the first half of next year unless conditions improve or it can raise extra fundsSource: FT.com - US homepage | 7 Nov 2008 | 7:07 pm E*TRADE and $800 Million E*TARP Funds (ETFC)
E*TRADE said that the application is being reviewed by the Office of Thrift Supervision, the company’s primary regulator. CEO Donald Layton said that the company remains optimistic that it will receive approval of the application and expects to make an announcement this month. No other statements and no other data were included by the firm. With another week left until the time expires, we have yet to see which of the second- and third-tier financial companies will be approved for funding and we have yet to see how much of the amounts applied for will actually be approved by Uncle Sam. E*TRADE has a market cap of roughly $1 billion, and we have maintained many times in our weekly publication that not all of the financial asbestos has been removed from the books. But we also believe that this company will emerge as a winner down the road. The question is whether or not the company does this on its own or if a competitor takes it over. You can sign up to our open email distribution list to hear additional comments regarding E*TRADE, other special situations, newsletter previews, IPO's, mergers, and more.
Jon C. Ogg Source: 24/7 Wall St. | 7 Nov 2008 | 6:57 pm US unemployment highest since 1994The US unemployment rate shot up to a 14-year high of 6.5 per cent in October, new data showed, while the economy shed 240,000 jobs in further evidence of the economic crisis confronting Barack Obama as he heads to the White HouseSource: FT.com - US homepage | 7 Nov 2008 | 6:54 pm Bloomberg's Levin Says U.S. Automakers Are Essentially BankruptSource: Bloomberg - All Podcasts | 7 Nov 2008 | 6:26 pm Nasdaq wins battle with NYSE over stock symbols (Reuters)
Source: Yahoo! News: Business | 7 Nov 2008 | 6:19 pm Corus to cut steel production 30%Europe's second-largest steel company Corus announces plans for a 30% cut in production this winter.Source: BBC News | Business | World Edition | 7 Nov 2008 | 5:24 pm Help Us or We DieFifteen billion dollars is the amount of money Iraq has earmarked for reconstruction, it's the total profits earned by Exxon Mobil in the third quarter, and it's the gross domestic product of Ghana.It's also the amount of cash that Ford and General Motors burned through during the three months that ended in September. The country's two largest automakers reported dismal losses for the third quarter, but it was their cash burn rates that were especially alarming. General Motors, which spent $6.9 billion during the period, disclosed that its cash levels may hit the minimum needed this quarter. Even with its planned cuts, it said it will likely fall below the amount needed during the first two quarters of 2009. General Motors also issued another plea for help from the federal government, which has so far declined to provide assistance to the automakers as part of its $700 billion bailout package. G.M. sought assistance to finance a merger with Chrysler. The carmaker doesn't mince words in its release: "Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve, it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, receives government funding under one or more current or future programs, or some combination of the foregoing." In other words, help us or we die. Ford's cash burn rate was also significant, but its situation isn't quite as dire yet. It lost $3 billion during the quarter and burned through $7.7 billion of its cash, but it also disclosed additional cuts that should improve its liquidity by $17 billion through 2010. General Motors can't even see that far ahead. Shares of G.M., after being halted before the release, traded down sharply on the news. They fell more than 12 percent, to $4.17. Ford shares fell by more than 3 percent. Related Links Detroit Needs a Miracle Then There Were None Ugh, What a Feeling, Toyota Source: Portfolio.com: Top 5 | 7 Nov 2008 | 5:00 pm GM (GM): First Half Of 2009 May Be The End Of The Road
"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company's estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve, it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, receives government funding under one or more current or future programs, or some combination of the foregoing." Douglas A. McIntyre Source: 24/7 Wall St. | 7 Nov 2008 | 4:40 pm EU 'united' on financial reformsEU leaders have reached a joint position on financial reforms that they can take to a global summit in Washington, France says.Source: BBC News | Business | World Edition | 7 Nov 2008 | 4:37 pm GM (GM) Earnings: US And Emerging Markets Are Bad, Cash Gets Low
For the third quarter, revenue fell $5.8 billion to $37.9 billion. A key measurement of the company's performance, operating cash flow, showed a loss of $6.9 billion compared with a negative $2.5 billion in the same quarter last year. GM reported a net loss of $2.5 billion, or $4.45 per share, for the third quarter, including special items. That compares with a net loss from continuing operations of $42.5 billion, or $75.12 per share, in the third quarter of 2007, which included a non-cash charge of $38.3 billion to establish a valuation allowance against some of the company's net deferred tax assets. On an adjusted basis, GM posted a net loss of $4.2 billion, or $7.35 per share, compared with a net loss from continuing operations of $1.6 billion or $2.86 per share in the same period last year. GM lost $2.3 billion in the US on revenue of $22.5 billion. In Europe, it lost $974 million on sales of $7.5 billion, down from $8.8 billion last year. GM Asia, which should be doing remarkably well, did not. Revenue fell from $5.3 billion to $4.8 billion and the unit lost $6 million down from a profit of $186 million. GM Latin America did remarkably well. The car company should sell all its other businesses and just operate there. Revenue rose to $5.7 billion for the quarter from $4.9 billion. Net was $514 million, up from $374 million. Cash, marketable securities, and readily available assets of the Voluntary Employees' Beneficiary Association (VEBA) trust totaled $16.2 billion on September 30, 2008, down from $21.0 billion on June 30, 2008. Money is getting tight. Douglas A. McIntyre Source: 24/7 Wall St. | 7 Nov 2008 | 4:33 pm US jobless rate at 14-year highThe US jobless rate jumped to 6.5% in October, official figures show, the highest rate since March 1994.Source: BBC News | Business | World Edition | 7 Nov 2008 | 4:33 pm Former Deutsche Post boss chargedKlaus Zumwinkel, the former head of Deutsche Post, is facing legal charges in connection with an investigation into tax evasion, officials confirmed.Source: BBC News | Business | World Edition | 7 Nov 2008 | 4:19 pm Lenders heed calls for rate cutsThe main mortgage lenders have started to respond to the government's demand that they should cut their mortgage rates.Source: BBC News | Business | World Edition | 7 Nov 2008 | 4:07 pm Goldman Sachs (GS) Goes Whole Hog On Jobless Forecast
"The unemployment rate is expected to rise to 8.5% by the end of next year and inch even higher in early 2010, economists for Goldman Sachs wrote Friday. The cumulative trough-to-peak increase of more than 4 percentage points in the jobless rate would be the most since World War II, they said. Goldman analysts lowered growth forecasts for the next three quarters, and said they now expect the Federal Reserve to cut its interest rate target to 0.50% by December. "The main reason for these changes is the accumulation of evidence that U.S. domestic demand and production are dropping sharply," they wrote. "We do not see a resumption of anything close to trend growth before 2010." Douglas A. McIntyre Source: 24/7 Wall St. | 7 Nov 2008 | 4:03 pm Crisis fast-tracks markets adviceA taskforce set up to bolster New Zealand's capital markets has brought forward plans to make recommendations to the Government by almost a year because of the global financial crisis. Capital Market Development Taskforce chairman...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm As credit markets thaw all attention turns to economyOverseas credit markets continued to show signs of thawing this week but while the worst of the credit crisis could be over, the full extent of the global economic slump it has unleashed is yet to be revealed. Lending rates between...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Liam Dann: Obama inherits a mess, or maybe a bargainAll the election euphoria in the world couldn't stop Wall St resuming its slide this week. While the Americans paused to elect their new President on Wednesday, it felt like the whole world took a break. On the big day - and in...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Britain slashes interest rate to 50-year lowThe Bank of England slashed its key interest rate by 1.5 percentage points yesterday to its lowest in more than 50 years in a dramatic bid to cushion the coming recession, while the European Central Bank settled for a more conservative...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Brian Gaynor : Silver Fern setback raises questionsThere is a huge difference between the current sharemarket downturn and the 1987 crash, particularly as far as New Zealand is concerned. Most of our large listed companies are now in good shape whereas in 1987 many NZX companies...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Casino giant in debt may not surviveSheldon Adelson, the billionaire who controls Las Vegas Sands, is said to have held talks with the Singapore Government this week as the casino company struggled with a cash shortage that threatens a US$4 billion ($6.78 billion) casino...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Small is the trend in a tight marketThe real estate industry has to deal with and adapt to big changes in the commercial and industrial property market as a result of the upheaval in global financial and investment markets. Writing in Bayleys' latest Total Property...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Diana Clement : Calm phase could be eye of the stormIt takes nerves of steel to plunge into the equity markets when it's not yet clear whether the depths have been plumbed. No one is 100 per cent certain that we're not just in the eye of the storm. Thanks to catastrophic collapses...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Reserve Bank moves againThe Reserve Bank yesterday added another two new measures to ensure the banking sector is not starved of liquidity should the credit crisis deepen further. It announced a new term auction facility which will operate in a similar...Source: New Zealand Herald - Business | 7 Nov 2008 | 4:00 pm Will BusinessWeek Cut Its Publishing Schedule To Twenty-Six Times A Year?
It makes all the sense in the world. Printing, paper, postage, and other transportation costs keep rising. Print advertising linage keeps dropping. So far this year, most of the major business magazines and newsweeklies have lost anywhere from 15% to over 30% of their advertising pages. According to the latest numbers from media newsletter MIN, US News, which will cut its publishing frequency to monthly from weekly next year, has lost 31% of its ad pages. BusinessWeek and Forbes are both down about 16%. BusinessWeek has a paid rate base of 900,000 people in the US. The magazine has to print more than that for newsstand copies and the issues that are sent free to the publication's customers and prospects. One of the difficulties of getting 900,000 of anything that is printed into people's hands is that it takes a lot of time. When the last word is edited and goes out the door it has to make its way to a printing plant, through the press, onto trucks, through the postal system and to the reader's door. It is hard to imagine that even in the best of circumstances that can be done in under 48 hours. For a lot of subscribers, it is probably closer to three or four days. Three or four days in the financial content industry is a very long time. Some analysts call it an eternity, but that seems like an exaggeration. Better to say that it is just too long. By the time people get their copies, almost everything in the magazine has been covered in one way or another by online financial websites, including BusinessWeek.com. A lot of the best BW content is simply rewritten and put up at other websites with only modest attribution. Because of the problems of time and space and the prevalence of the internet, it is hard to make a case for the long-term survival of the print edition of BusinessWeek. In the most optimistic way of looking at costs, let's assume a number of $.75 a copy to print and mail one issue. That would bring the cost to $675,000 a week. And, the number could well be closer to $1 a copy. BusinessWeek pays a premium to get its magazine around to people faster than Good Housekeeping does. BusinessWeek probably would lose very little revenue by cutting its publishing frequency to twenty-six times a year from fifty (the magazine puts out a couple of double issues). It would save $20 million or so in printing, paper, and postage. Subscribers would make it through the terms of their subscriptions more slowly. A one-year subscription would become a two-year subscription.That could be good or bad depending on how much the publication makes on its circulation. And, BusinessWeek might lose very few of its advertising pages. So far this year, it has run 1,542 paid pages compared to Fortune's 2,083 and Forbes' 2,323, Being weekly obviously does not guarantee being the ad page leader. BusinessWeek would have to drive a larger and larger portion of its readership to its website. People are getting more of their business news online as each day passes. The only question is whether they will get that at Businessweek.com or somewhere else. Audience measurement firm Compete says BusinessWeek had a little over three million unique visitors last month. That is well below the Forbes figure of 13.7 million, but these research numbers are not very reliable. Leave it at this-BusinessWeek has a formidable audience online. If BusinessWeek cuts its frequency, it will be making the magazine into a more feature-oriented publication. Breaking news pieces will only have a place on the website. Whether BusinessWeek parent McGraw-Hill (MHP) will keep all of the magazine and website staff if it cuts the number of issues per year is hard to say. The temptation is almost always to cut jobs. But, that would likely undermine the quality of the website. BusinessWeek has been a weekly since 1929. It won't be one by the end of next year. Next week: Value of Elevation Partners investment in Forbes. Douglas A. McIntyre Source: 24/7 Wall St. | 7 Nov 2008 | 3:40 pm Will BP Buy Chesapeake? (BP, CHK)
At the end of the third quarter, BP had more than $14 billion in cash and short-term equivalents available. Chesapeake's market cap as of this morning was just north of $13 billion. BP's ADR price is about double Chesapeake's share price, making some combination of cash and shares reasonable. The AP said that it spoke to a couple of industry analysts this morning, who thought the rumors were nothing more than speculation. But are they? We have our own thoughts. It was only in September that BP's TNK-BP joint venture was settled a dispute with its Russian partners and retain its permits to produce crude oil. And a year ago BP was forced by the Russian government to sell its 63% stake in the license to develop the massive Kovykta gas field. BP made money on the deal, but not as much as it would have it had been allowed to produce the estimated 70 trillion cubic feet of natural gas. If BP were to buy Chesapeake, the Brits could rest easy knowing that a US company stays bought and isn't magically stripped away. And Chesapeake holds more than 12 trillion cubic feet of natural gas reserves as of the end of the third quarter. The company reported total debt of about $12.4 billion and acquisition costs of proved reserves of $2.16 per thousand cubic feet. The big question for BP is how big a premium would it take to get Chesapeake? Natural gas prices are below $7/thousand cubic feet. Offset that relatively low price with easy access to the reserves, and the assumption that prices will certainly rise going forward. At about $2.50/thousand cubic feet of reserves, less debt, Chesapeake would cost BP around $18 billion. That might be an offer that Chesapeake's shareholders couldn't refuse. Would CFIUS allow it to proceed?
Chesapeake shares are now up over 3% at $23.15 today.
Paul Ausick Source: 24/7 Wall St. | 7 Nov 2008 | 3:31 pm The New Goldman Sachs Model: Quarterly Losses (GS, C, BRK-A)
The quarter ending in November is still expected to show earnings north of $1.50 EPS if you trust the raw numbers at Thomson Reuters (First Call). But the issue iis that you know that you cannot trust the numbers from analysts right now. Analysts have had their earnings estimates wrong and too high for quite a while, and it is even worse in the brokerage firm estimates for their own industry peers. Last night, we even heard Jim Cramer talk about a wider loss possibly at $4.00 or $5.00 per share. We do want to pass on more and more conspiracy theories here, but the conflict of interest in brokerage firm analysts covering other brokerage firms is obvious as a cold sore on a beauty queen. When a brokerage firm to downgrade or slash estimates on a competitor, it is telling Wall Street and Main Street that they are also in the same boat. If you hear investors complaining about how much money is being lost in the system and how difficult the environment is, is that or is that not code language for them saying THEY are losing their shirts? Goldman Sachs has become a bank holding company and is having to de-leverage along with every other financial firm. The company's hedge fund business has been unable to post the strong gains. Underwriting has dried up. There was about as much corporate bond trading in September and October as their was in the USSR from the 1920's to the 1980's. Betting against financial stocks and peers was no longer a lay-up, and the market swings from the morning to the close were often so severe and often so swift that gains rapidly became losses and losses rapidly became gains. And the forced selling took down the balances of managed fund accounts. Can you imagine that Goldman Sachs actually made a supposed call to Citigroup (NYSE: C) about a suspected merger? That is ridiculous. Citi was Wall Street whipping boy for years, yet now it seems that every financial firm that is "in the club" of government mandated survivors has to copy their business model. So what is expected to come in late 2008 or into 2009 is an acquisition of deposits. We gave a list of companies which Goldman Sachs might want to consider buying. But that is mere posturing, and it is very possible that the firm will lop up institutions as they teeter rather than by going and being an aggressive buyer. If Goldman Sachs is going to actually lose money and lay off a huge portion of its workforce, the firm better come up with a distraction by buying a bank or depository institution. Three-Card Monte may be alive and well. Maybe Warren Buffett and Berkshire Hathaway (NYSE: BRK-A) will get a chance to buy more stock or preferred shares at lower prices.
Jon C. Ogg Source: 24/7 Wall St. | 7 Nov 2008 | 2:50 pm Yahoo for Sale: Ballmer Says NoYahoo is going to have to twist in the wind a little longer.Microsoft C.E.O. Steve Ballmer offered no refuge for embattled Yahoo boss Jerry Yang on Friday morning, ignoring Yang's open invitation for Microsoft to rebid on the company. "We have moved on," Ballmer said at a conference in Sydney, Australia, one day after Yang said he was open to a Microsoft buyout. "We're not interested in going back and relooking at an acquisition." But he couldn't resist mocking Yahoo's failed search-ad partnership with Google, which collapsed this week. "I'm sure there are still opportunities for some kind of partnership around search," Ballmer said, according to Bloomberg News. Microsoft wants to buy Yahoo's search business but doesn't want to pay for the rest of the company, even at this reduced valuation. Yang's newfound openness to a Microsoft deal is a direct consequence of the collapse of Yahoo's closely watched search deal with Google. The Yahoo-Google search deal represented Yahoo's escape hatch from Microsoft's hostile-buyout attempt. But now that the Yahoo-Google deal has fallen apart, Yahoo is defenseless. Yang said so much when he put the company up for sale this week. "The best for Microsoft to do is to buy Yahoo," Yang said at the Web 2.0 conference in San Francisco. "I don't think that is a bad idea at all." It was a shocking admission from Yahoo's founder, who had plegded that Yahoo wound remain independent. But Ballmer wasn't buying. And if there's one thing we know about Ballmer, Microsoft's pugnacious C.E.O., it's that he never forgets.Related Links Google Extends Web Search Lead Yang's Remorse Yahoo Shareholders Steaming As Share Price Hits 5-Year Low Source: Portfolio.com: Top 5 | 7 Nov 2008 | 2:30 pm Frontier Oil, Refiner Earnings Lagging Peers (FTO, SUN, WNR, VLO)
Unlike Sunoco (NYSE:SUN) or Western Refining (NYSE:WNR), Frontier did not say anything about trying to sell any assets. Valero Energy (NYSE: VLO) appears to have recently signaled that the worst is behind too. Frontier noted an after-tax hedging gain of $64.2 million for the quarter and a $77.5 million after-tax inventory loss. The company doubled its cash balance to $464 million, up from $221.2 million at the end of the 2008 second quarter. Most of that gain was due to the issuance of about $195 million in senior long-term debt. The share prices of Frontier fell $0.06 yesterday and another $0.10 after hours. Frontier's stock is off its 52-week high by about 75% with a $12.45 close. That is also about 45% above its recent lows.
Paul Ausick Source: 24/7 Wall St. | 7 Nov 2008 | 1:52 pm Jobs WastelandThe most telling measure yet of the depth of this recession came in a very ugly October employment report. American employers slashed 240,000 jobs last month, and the unemployment rate jumped from 6.1 percent to 6.5 percent, its highest level in 14 years. The data were far worse than economists' estimates. There are now 2.8 million unemployed Americans—more than the population of Kuwait, which is 2.6 million. What a Recession Looks Like Looking Down Big Job Losses Early -- Good or Bad? Source: Portfolio.com: Top 5 | 7 Nov 2008 | 1:00 pm Japan's Daiichi in Ranbaxy dealLeading Japanese pharmaceutical firm Daiichi Sankyo completes its $4.2bn (£2.6bn) takeover of the Indian drugs firm Ranbaxy.Source: BBC News | Business | World Edition | 7 Nov 2008 | 12:56 pm
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