Oil retreats $1 after surge on shares rally

LONDON (Reuters) - Oil fell $1, nearing $57 on Friday taking back some of the four percent gains of the previous session when an equity market bounce helped pulled prices higher.
Source: Reuters: Business News | 14 Nov 2008 | 12:14 pm

Most Merrill financial advisers accept BofA bonus: report

(Reuters) - Ninety percent of Merrill Lynch & Co Inc financial advisers who were offered bonuses to stay on with Bank of America Corp had signed up for them as of late Thursday, the Wall Street Journal said, citing people familiar with the firm.
Source: Reuters: Business News | 14 Nov 2008 | 12:11 pm

Insurers pull cover from suppliers to GM, Ford: report

LONDON (Reuters) - Three big European credit insurers have removed cover from suppliers of troubled U.S. carmakers General Motors Corp and Ford Motor Co, the Financial Times reported on Friday.
Source: Reuters: Business News | 14 Nov 2008 | 12:09 pm

World leaders head for summit, euro zone in recession

LONDON (Reuters) - World leaders headed to Washington on Friday to try to find ways to tackle a global economic crisis that has plunged much of Europe into its first recession since the euro currency was formed.
Source: Reuters: Business News | 14 Nov 2008 | 12:07 pm

Dexia agrees sale of U.S. unit after huge loss

BRUSSELS (Reuters) - Belgian-French financial services group Dexia agreed the sale of its troubled U.S. bond insurance subsidiary and launched a cost-saving drive after a heavy third-quarter loss.
Source: Reuters: Business News | 14 Nov 2008 | 12:03 pm

Former Falkland Islands Governor Richard Ralph fined for insider trading

A former British ambassador and governor to the Falkland Islands who confessed to insider dealing has been spared a criminal prosecution.
Source: Latest Business News from Times Online | 14 Nov 2008 | 11:49 am

RBS mulls axing 3,000 investment bank jobs: source

LONDON (Reuters) - Royal Bank of Scotland is considering cutting 3,000 jobs in its investment banking arm, a person familiar with the matter said on Friday.
Source: Reuters: Business News | 14 Nov 2008 | 11:37 am

Auto bankruptcy protection won't work: report

(Reuters) - A Chapter 11 restructuring bid by one of the three top U.S. automakers is unlikely to succeed due to the damaged economy and frozen credit markets, and may even result in the company folding, billionaire investor Wilbur Ross told Bloomberg in an interview.
Source: Reuters: Business News | 14 Nov 2008 | 11:34 am

October retail sales expected to be weak (AP)

AP - Consumers, the backbone of the economy, are taking a beating from the worst economic crisis in seven decades and there is little prospect of that letting up soon.

Source: Yahoo! News: Business | 14 Nov 2008 | 11:34 am

Summit hopes revive stock markets

European and Asian shares spring to life on hopes that a global economic summit in Washington will make some progress in tackling the worst financial crisis in a century.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 11:32 am

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 11:31 am

Auto bankruptcy protection won't work: report (Reuters)

Reuters - A Chapter 11 restructuring bid by one of the three top U.S. automakers is unlikely to succeed due to the damaged economy and frozen credit markets, and may even result in the company folding, billionaire investor Wilbur Ross told Bloomberg in an interview.

Source: Yahoo! News: Business | 14 Nov 2008 | 11:30 am

Global stocks jump

Global stock markets advanced Friday, buoyed by a rally on Wall Street overnight and hopes that world leaders meeting in Washington would push for changes that will help right the economy.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 11:26 am

Fifteen Country Euro Zone Moves Into Recession

In news which should surprise no one, all of Europe has moved into a recession.

According to The Wall Street Journal, "The European Union said the 15-country euro zone is in recession as figures show its economy shrank for two consecutive quarters for the first time since the currency area was formed in 1999."

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 11:24 am

Stocks set to drop at open

U.S. stock futures fell early Friday as investors caught their breath after the previous session's roaring gains, awaited a key reading on the retail sector and reacted to reports of massive layoffs at Citigroup.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 11:24 am

Pound drops to fresh lows against euro and dollar

The pound regained some poise on Friday after dropping to a fresh record low against the euro and a six-and-a-half year low against the dollar overnight
Source: FT.com - US homepage | 14 Nov 2008 | 11:20 am

OPEC Prepares To Wage War

As ironic as it may seem, the finances of OPEC members may be as bad as at any time in recent memory. They have become poor as quickly as they became rich earlier this year.

OPEC obviously expected oil prices to stay above $100 for some length of time. Government budgets in places like Iran and Venezuela depend on high crude. Now they face massive deficits and no way to handle their obligations.

In places including Saudi Arabia and Kuwait parts of the banking systems are strained and the ability of royal families to buy new Hummers and private jets has been hurt.

OPEC has seen an astonishing drop in crude prices catch it unawares. Who would have believed that oil would fall from $147 to $55 in a matter of months. But, economies in the West, India, and China have slowed despite massive stimulus packages in place and planned.

The cartel faces an easy choice. There was a time around summer when driving up crude prices could be blamed for hurting the global economy by increasing the price of gas and fueling inflation. Those issues are hardly relevant at this point.

Now, OPEC has no option but to severely cut supply and little risk of being viewed badly, at least in the early stages of production cut.

To move oil back up would involve a Herculean effort to keep shipments down. Daily exports of crude would probably have to be chopped by two million barrels a day. If that does not work, the number would need to be ratcheted up again.

Cheap oil is not here to stay. OPEC nation's can't afford it and being accused of causing dangerous inflation is no longer a problem.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 11:19 am

It's official but not unexpected: Euro zone's in recession

A global economic slowdown, financial turmoil and home-grown problems combine to push the 15-nation euro zone into recession, data show.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 11:19 am

Crisis fallout: Meet the revamped corporate leader

"CDOs squared? What the hell were we thinking? These things were way too complicated!" J.P. Morgan Chase CEO Jamie Dimon exclaimed at a Harvard Business School summit in mid-October.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 11:14 am

EADS ups outlook, returns to profit on lower A400M charges

European Aeronautic Defense & Space on Friday says it swung to a profit in the third quarter after taking fewer hits from a troubled military transport program as it did in the year-earlier period.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 11:12 am

Oil steady below $58; OPEC hints at meeting

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 11:10 am

Eurozone officially in recession

The eurozone officially slips into recession after new figures show that the economy contracted 0.2% in the third quarter.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 11:05 am

Boeing (BA) Takes Another Chance To Ruin Its Prospects

It seems like only yesterday that Boeing (BA) settled a six-week strike with its machinists. That took six weeks and delayed production of scores of planes which have customers panting to get delivered. The new Dreamliner, in particular, is suppose to sip fuel and save a lot of money in the process. But, Boeing cannot avoid a love of calamity.

After admitting that the labor stoppage had hurt its earnings and its standing with customers, the airplane maker is about to pick a fight with two other large unions.

According to The Wall Street Journal, "In an effort to ratchet up pressure on Boeing Co. negotiators, leaders of the union that represents about 21,000 of the company's white-collar engineers and technical workers said they will ask their members to authorize a strike." Boeing did wait until the last minute. The contract runs out on December 1.

Boeing is an extraordinarily rich company and it will become even more wealthier if it can deliver planes from its backlog of orders which may be the largest in aviation history. All it has to do is stay open for business and its revenues will soar, not just next year but for the better part of the next decade.

Fighting with its unions over relatively modest costs will only undermine the company's future.

Sometimes, cheap gets expensive.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 11:02 am

Investors join Obama on CEO pay

President-elect Barack Obama had plenty to say about corporate excess on the campaign trail. One place his presidency should have a direct and early impact is in so-called "say on pay" legislation that would make annual shareholder votes on senior executive compensation part of securities law. The question is whether that would actually accomplish anything in terms of reining in over-the-top executive pay.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 10:57 am

Zero Percent Financing For Everything

The major car companies have been offering zero percent financing on most of their models for several months now. That deal even applies to seven-year loans. It may have stimulated sales. In a bad economy, it is hard to tell.

Yesterday, Microsoft (MSFT) announced it would offer zero percent financing to medium-sized business to stimulate sales.

According to The Wall Street Journal, "Gayle Hoshino, a Microsoft director of pricing and licensing, says the company got a positive response to a similar pilot financing program it started in Canada in July." That would make sense. It is a remarkably good deal.

As the government struggles to improve the housing crisis, one thing is clear. People do not want to buy houses because their value is falling. They are also out of the market because bank credit is tight and many mortgages still carry a 6% interest rate. Annual compounding turns that into a pretty big nut over a 30-year period.

The federal government has Fannie Mae (FNM) and Freddie Mac (FNM) working on extending and resetting all sorts of home loans. That will take months, at least. Those months are precious as the economy continues to fall and housing prices continue to falter.

One of the options banking regulators, the Fed, and the Treasury have is to offer zero-percent mortgages to new homeowners and similar terms to people who are struggling to stay in their homes. The banks who make the home loans would have to get a credit for that, but Treasury still has several hundred billion dollars to spare. Cutting mortgage interest rates may put the "good" homeowner who makes all of his payments, as good credit, and has a 6% mortgage at a disadvantage, but the government has already shown it is willing to be selective in who is helps and who it ignores.

The Fed has already set interest rates at 1% and there is some speculation that the number will drop again. Lending to financial institutions is a tricky business. Not all of them will survive.

Homeowners are probably a better risk.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 10:52 am

'Surprise' leap in card spending

Figures show a surprise increase in spending on plastic cards in the UK in September, despite a smaller rise in borrowing.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 10:51 am

NIBC Bank Reports Solid Financial Position in Very Challenging Market Circumstances

THE HAGUE, Netherlands, November 14 /PRNewswire/ -- - Profit after tax from continuing operations amounts to EUR 155 million in the first nine months of 2008, a...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 10:50 am

UK company bankruptcies rise 13 per cent

There has been a sharp rise in the number of companies seeking a winding up petition in the months of July, August and September, according to figures released by the Ministry of Justice this morning.
Source: Latest Business News from Times Online | 14 Nov 2008 | 10:45 am

Shaping a new world order

The role of the United States as the world's economic leader will be tested this weekend when emboldened leaders of the 20 most powerful countries meet in Washington to address the global financial crisis.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 10:43 am

Europe car sales in steep decline

New car sales in Europe fall 14.5% in October for the sixth month in a row, say Europe's carmakers.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 10:41 am

Euro zone in recession as leaders head for summit (Reuters)

Reuters - Recession has hit much of Europe, data showed on Friday, confirming a widespread economic downturn that world leaders hope to tackle at a weekend summit in Washington.

Source: Yahoo! News: Business | 14 Nov 2008 | 10:41 am

Indications: U.S. stock futures down on doubts rally will continue

U.S. stock futures traded lower Friday on doubts whether the explosive gains seen in the last session can be sustained amid signs of a deteriorating world economy.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 10:36 am

Citigroup (C): Vikram Pandit's Grand Strategy Of Cutting People

Perhaps it is a remarkable failure of imagination or just animal panic. A day after Citigroup (C) hit a multi-year low and spent time below $10, CEO Vikram Pandit's answer was to buy a few crummy shares in the bank and prepare to fire another 10,000 poor souls. He also decided to raise rates on credit cards, which would seem to undermine the federal government's programs to help consumers during a liquidity crisis.

According to The Wall Street Journal, there is a way to save some jobs."Managers can minimize the number of employees they fire by dismissing higher-paid traders and bankers." Very clever.

Pandit is stuck in mud he created on his own. While other banks like Wells Fargo (WFC), Bank of America (BAC), and JP Morgan (JPM) were buying financial institutions to build deposit and talent bases, Citi did not do much. Some companies like Wachovia and Merrill Lynch (MER) even had the foresight to do something. They sold themselves before being reposed by the government.

Pandit came into Citi with the promise that he would emphasize the institution's strengths and sell-of operations which would not be part of his "strategic" view of the future of the world's financial industry. Analysts would be hard pressed to find much of that. If anything did happen, it must have been during the dead of night.

Citi is face with the unenviable prospects of more losses and a consumer credit portfolio which is likely to go through substantial rates of default among its customers. There are very few large financial institutions to buy. Citi may even face an AIG-like event if its write-offs get large enough and its share price drops far enough.

Perhaps, the Fed could merge Citi and AIG (AIG). There must be come cost savings in that.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 10:32 am

Stock futures signal drop after strong rally

(Reuters) - Stocks were set for a lower open on Friday, surrendering some of the hefty gains made in the previous session after the S&P 500 and Nasdaq indexes touched five-year lows that triggered a wave of bargain hunting. By 6:05 a.m. EST, S&P 500 futures were down 1.6 percent, Dow Jones futures were down 1.5 percent and Nasdaq 100 futures weredown 0.7 percent.
Source: Reuters: Business News | 14 Nov 2008 | 10:31 am

Stock futures signal drop after strong rally (Reuters)

Reuters - Stocks were set for a lower open on Friday, surrendering some of the hefty gains made in the previous session after the S&P 500 and Nasdaq indexes touched five-year lows that triggered a wave of bargain hunting. By 6:05 a.m. EST, S&P 500 futures were down 1.6 percent, Dow Jones futures were down 1.5 percent and Nasdaq 100 futures weredown 0.7 percent.

Source: Yahoo! News: Business | 14 Nov 2008 | 10:31 am

Eurozone tumbles into first-ever recession

The eurozone has fallen into recession for the first time since the single currency was introduced in 1999, official figures show this morning.
Source: Latest Business News from Times Online | 14 Nov 2008 | 10:30 am

Euro-zone economy falls into recession

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 10:26 am

G20 will seek ways out of crisis

Leaders of the G20 developed and emerging economies will begin talks over the weekend in Washington.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 10:14 am

Auto bankruptcy protection won't work: report

(Reuters) - A Chapter 11 restructuring bid by one of the three top U.S. automakers is unlikely to succeed due to the damaged economy and frozen credit markets, and may even result in the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 10:12 am

Struggling pound continues slide

The pound's dismal run continues as fears about the health of the UK economy persist.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 10:03 am

9M08 Net Revenue: Up 42.0% YoY - R$ 574.3mn, Adjusted EBITDA: Up 73.3% YoY - R$ 39.0mn and 3Q08 Net Profit R$ 6.2mn, Adjusted Net Profit R$ 10.9mn

SAO PAULO, Brazil, Nov. 14 /PRNewswire-FirstCall/ -- Metalfrio Solutions S.A. ("Metalfrio" - Bovespa: FRIO3), one of the world's largest manufacturers of...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 10:00 am

London Markets: Shares in London jump after Wall Street rally

London shares climb sharply on Friday, as investors take a lead from strong gains on Wall Street, with miners and oil producers some of the best performers.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 9:59 am

Havas: Organic Growth of +5.8% for the First 9 Months of 2008

Revenue for the First 9 Months of 2008: EUR1,118 Million Continued Strong Progress in Net New Business(1): EUR1,446 Million for the First 9 Months of 2008 For Full Year 2008,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:56 am

Dexia sells FSA unit to Assured Guaranty for $722 million

Belgian-French bank Dexia says Friday it’s agreed to sell its struggling FSA bond insurance unit to Assured Guaranty for $722 million as it also reports a 1.54 billion euro ($1.96 billion) loss in the latest quarter.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 9:51 am

/C O R R E C T I O N -- Sutor Technology Group Limited/

In the news release, "Sutor Technology Group Limited Announces First Quarter Financial Results of Fiscal Year 2009", issued yesterday by Sutor Technology Group...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:47 am

New Star forced to renegotiate debt covenant

New Star Asset Management, the embattled fund manager, admitted today that it had renegotiated its banking covenants after plunging markets wiped £3.9 billion off the value of its assets since the end of June.
Source: Latest Business News from Times Online | 14 Nov 2008 | 9:38 am

Serbia reaches deal with IMF

Serbia said Friday it has reached a deal with the International Monetary Fund to get a loan in case of emergencies to counter the global financial crisis and increase the Balkan country's...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:35 am

UPDATE 1-ING cuts Shell to hold; raises Repsol to buy

Nov 14 (Reuters) - ING downgraded Royal Dutch Shell to "hold" from "buy," and said the oil company's earnings and profitability may take a sharp hit in 2009-10, but upgraded Repsol-YPF to "buy" from...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:35 am

Virgin Atlantic plans Gatwick bid

Virgin Atlantic and Easyjet are planning a joint bid for Gatwick airport, which has been put up for sale by its owner BAA.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 9:34 am

Asia Markets: Tokyo, Hong Kong upbeat: BHP shines on oil rise

Asian stocks recoup some losses after three straight losing sessions Friday, as markets across the region adopt an upbeat tone following super-sized gains for U.S. stocks, although initial momentum fizzles somewhat into afternoon trading.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 9:33 am

Sumitomo Mitsui first-half profit plunges 51 pct

Sumitomo Mitsui Financial Group Inc. said first-half net profit plunged 51 percent due to a spike in credit costs and other expenses against the backdrop of financial markets turmoil and a...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:24 am

Italian economy slides into recession

Government data show that the Italian economy is officially in recession. Europe's fourth-largest economy recorded negative growth for the second consecutive quarter in the third quarter.
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:21 am

EADS rebounds to profit in 3rd quarter

AP Business Writer PARIS Airbus parent company EADS said Friday it rebounded to a profit in the third quarter thanks to lower costs for restructuring and fewer delays to aircraft...
Source: Infocious RSS raw feed - channel BNewsBusiness | 14 Nov 2008 | 9:15 am

Corrections: Shares in Europe shoot higher after Wall Street rally

A MarketWatch story on Nov. 14 misstated the name of the Stoxx 600 index. Read the corrected story.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 9:13 am

Europe Markets: CORRECT: Shares in Europe shoot higher after Wall Street rally

European shares jump higher on Friday morning with investors taking their lead from the U.S. where stocks staged a monster rally.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 9:06 am

Media Digest 11/14/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, concerns about the global economy are growing as the G20 nations are meeting.

Reuters says that Congress challenged banks on how they would use bailout funds.

Reuters reports that companies including Honda (HMC), Home Depot (HD), and Dow Chemical (DOW) want the Fed to buy their commercial paper.

Reuters writes that RBS (RBS) will cut 3,000 jobs.

Reuters writes that EADS raised its financial targets for next year.

Reuters writes that Nissan will cut its Japan output further due to a recession in that country.

Reuters reports that Dow Jones has remained loyal to GM (GM) by keeping it in the DJIA.

Reuters writes that hedge funds see more regulation coming.

Reuters reports that the federal bailout may help the value of asset-backed securities.

Reuters reports that Kohl's Corp (KSS) and Nordstrom (JWN) cut their financial outlooks.

The Wall Street Journal writes that banks are in a war to get new deposits by raising rates.

The Wall Street Journal reports that Citigroup (C) will make large job cuts and raise rates on its credit cards.

The Wall Street Journal reports that tensions are rising in labor negotiations between Boeing (BA) and the unions that represent white-collar engineers and technical workers.

The Wall Street Journal reports that Wal-Mart (WMT) is defying the retail slowdown.

The Wall Street Journal reports that luxury good makers are cutting US prices.

The Wall Street Journal reports that there are culture clashes in the merger of Bank of America (BAC) and Merrill Lynch (MER)

The Wall Street Journal reports that Microsoft (MSFT) will offer zero percent financing on some business software.

The Wall Street Journal reports that OPEC will try to stop the falling price of oil.

The Wall Street Journal writes that PC makers are scrambling to get more share of a shrinking market.

The Wall Street Journal reports that Sprint (S) will offer some employees buyouts.

The Wall Street Journal reports that Treasury drew fire from Congress for shifting bailout fees away from buying toxic bank assets.

The Wall Street Journal reports that an auto industry bailout bill will probably not pass this year.

The Wall Street Journal reports that mortgage rates are still falling.

The Wall Street Journal reports that Google's (GOOG) ad model is being hurt because consumers will not even search for products during the recession.

The Wall Street Journal reports that credit rating agencies cut several car suppliers including Dana (DAN) and Magna (MGA).

The Wall Street Journal reports that NBC and Fox will start a pool to gather local news.

The New York Times reports that the FDA detained some Chinese products for testing.

The New York Times reports that Google (GOOG) added search by voice to Apple (AAPL) iPhone software.

The FT reports that Citigroup (C) CEO bought shares in the bank.

Bloomberg said Cerberus said it would give up future profits if the government would bailout Chrysler.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 9:03 am

Insurers pull cover from GM, Ford suppliers: report (Reuters)

Reuters - Three big European credit insurers have removed cover from suppliers of troubled U.S. carmakers General Motors Corp and Ford Motor Co, the Financial Times reported on Friday.
Source: Yahoo! News: Business | 14 Nov 2008 | 8:59 am

New Fannie-Freddie plan: Who gets help

Mortgage giants Fannie Mae or Freddie Mac may back 30 million mortgages. But that doesn't mean that the new foreclosure prevention program announced this week by the Bush administration will rescue every troubled borrower on their books.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 8:46 am

John Lewis sales fall stamps out brief recovery

Sales at John Lewis, the department store, tumbled almost 10 per cent last week, despite earlier signs of a modest recovery in high street trading in the run-up to Christmas.
Source: Latest Business News from Times Online | 14 Nov 2008 | 8:32 am

Citigroup to cut at least 10,000 jobs: report (Reuters)

Reuters - Citigroup Inc is cutting at least 10,000 jobs in its investment bank and other divisions throughout the world, the Wall Street Journal said, citing people familiar with the matter.

Source: Yahoo! News: Business | 14 Nov 2008 | 8:23 am

Citigroup to cut at least 10,000 jobs: report

(Reuters) - Citigroup Inc is cutting at least 10,000 jobs in its investment bank and other divisions throughout the world, the Wall Street Journal said, citing people familiar with the matter.
Source: Reuters: Business News | 14 Nov 2008 | 8:23 am

Asia Market And Europe Open 11/14/2008

Source: 24/7 Wall St. | 14 Nov 2008 | 8:21 am

Honda, others want Fed to buy their paper: report

(Reuters) - A group of companies including Honda Motor Co , Textron Inc and Home Depot Inc are pressing the U.S. Federal Reserve to expand purchases of commercial paper to include them, Bloomberg said, citing two people briefed on the matter.
Source: Reuters: Business News | 14 Nov 2008 | 8:06 am

Obama's pledge to name federal tech chief generates buzz

The tech community is speculating about what role the government official will play and who will be picked to fill the newly created post. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Wal-Mart trims outlook despite 10% rise in profit

The world's largest retailer reports earnings of $3.14 billion, or 80 cents a share, in its third quarter.

WAL-MART Outlook is trimmed despite rise in profit

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

EBay removes offers of Obama inauguration tickets

Officials were concerned that some offers could be scams. Tickets to the presidential swearing-in ceremony are supposed to be free and won't be distributed until a few days before the event. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Stocks stage huge, late rally; Dow finishes up 552 points

Bargain-hunters appear to be responsible for much of the gains. The resurgence halts three consecutive days of losses. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Peter Chernin ponders leaving News Corp.

The media conglomerate's president is in contract talks but is unsure whether to remain or embark on something new.

New Corp.'s Peter Chernin is wrestling over whether to surrender one of the biggest jobs in entertainment.

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

Cost of turkey dinner rises, study says

Add Thanksgiving dinner to the nation's economic woes. The price of that classic turkey dinner, with stuffing, cranberries and pumpkin pie, will cost you more this year, the American Farm Bureau Federation...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Rates on 30-, 15-year mortgages drop

Rates on 30-year fixed-rate mortgages averaged 6.14% this week, down from 6.20% last week, mortgage company Freddie Mac said.

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

Reports on jobless benefits, exports signal deeper economic slump

Jobless benefits hit a 25-year high, a report shows. Also, imports and exports post drops in September. The global...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Obama's pledge to name federal tech chief generates buzz

The tech community is speculating about what role the government official will play and who will be picked to fill the newly created post.

The most talked-about tech job in government is one that never before existed.

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

Studios can watch Strike.TV, but they can't touch its content

The website, a product of the 100-day writers strike, lets scriptwriters own, feature and control their work.

Striking writer Peter Hyoguchi was walking the picket line outside Disney's ABC Studios in Burbank in January when he had an epiphany. ¶ What if scriptwriters launched a website featuring their work, which they would own and control free of studio interference? ¶ That hunch is about to be tested. After months of planning and delay, Hyoguchi and his colleagues have turned their seemingly quixotic idea into a reality. Two weeks ago they launched an online "network" for original programming named Strike.TV. ¶ It marks an ambitious effort to connect film and TV writers to the fledgling world of online video. The portal will run 45 original Web series with more than 200 episodes from such veteran writers as Lester Lewis, a producer on "The Office," and "Star Trek: Enterprise" scribe Ken LaZebnik. Shows include actors Timothy Dalton and JoBeth Williams. ¶ Episodes are mostly three to five minutes in length and roll out daily on Strike.TV, and also are available on video websites YouTube and Joost. The Los Angeles company just signed an agreement with Hulu, an online video service, to become its largest supplier of Web-original entertainment.

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

EBay removes offers of inauguration tickets

Officials were concerned that some of the offers could be scams. Tickets to Barack Obama's swearing-in ceremony are supposed to be free and won't be distributed until a few days before the event. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

SunCal files for Chapter 11 for two projects

The Irvine builder seeks bankruptcy protection for a proposed Westside skyscraper and a planned community in San Clemente. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Court-ordered closure halts slide on Kuwait Stock Exchange

Individual investors take legal action to protect their portfolios, but government and market officials call the move foolish. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Stocks stage huge, late rally; Dow finishes up 6.7%

Bargain-hunters appear to be responsible for much of the gains. Nevertheless, the resurgence halts three consecutive days of losses. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Peter Chernin ponders leaving News Corp.

The media conglomerate's president is in contract talks but is unsure whether to remain or embark on something new. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 8:00 am

Stocks stage huge, late rally; Dow finishes up 552 points

Bargain-hunters appear to be responsible for much of the gains. The resurgence halts three consecutive days of losses.

Stocks staged a powerful rally Thursday after three straight down days, with the Dow Jones industrial average surging more than 550 points.

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

SunCal files for Chapter 11 for two projects

The Irvine builder seeks bankruptcy protection for a proposed Westside skyscraper and a planned community in San Clemente.

Venerable Irvine builder SunCal Cos. said Thursday that it would seek federal bankruptcy protection for two of its premier planned residential developments in Southern California -- including a 45-story luxury Westside tower on one of the region's most valuable pieces of land.

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

Strict conditions almost certain for automaker bailout

Sending Detroit's Big Three billions with no strings attached would be folly, some say. Others contend too many requirements would strangle a weak industry.

With pressure rising for the government to save U.S. automakers from the financial junkyard, the question is fast becoming: Should General Motors, Ford and Chrysler simply get infusions of tax dollars? Or, in exchange for the billions, should they be forced to accept sweeping changes that critics say are necessary for their competitiveness and survival?

Source: L.A. Times - Business | 14 Nov 2008 | 8:00 am

RBS to slash 3,000 banking jobs worldwide

Royal Bank of Scotland (RBS), the struggling bank, is preparing to axe up to 3,000 staff across its worldwide workforce as it braces itself against the onslaught of the global recession.
Source: Latest Business News from Times Online | 14 Nov 2008 | 7:28 am

Agency 'will not manage banks'

The company set up to manage government stakes in three High Street banks will not interfere in their day-to-day running.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 7:02 am

Currency: Volatility continues in dollar

The New Zealand dollar surged higher today along with battered global equity markets but moves in offshore markets will continue to dictate direction. The NZ dollar tested multi-year lows on Thursday night, moving in a band between...
Source: New Zealand Herald - Business | 14 Nov 2008 | 6:55 am

RBS to cut 3,000 jobs worldwide

Royal Bank of Scotland (RBS) is to cut about 3,000 jobs worldwide in the next few weeks, the BBC has learned.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 6:28 am

NZ stocks: Strong day for sharemarket

The New Zealand sharemarket finished a bleak week with a strong performance, after United States equities finished with big gains after another roller coaster ride. The benchmark NZSX-50 index closed up 38.045 points, or 1.394...
Source: New Zealand Herald - Business | 14 Nov 2008 | 6:19 am

Peter Brimelow: Aden sisters still jumpy

The top-performing hard asset letter says the crisis is abating. But it’s still jumpy.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 5:10 am

Hillary Clinton a contender for secretary of state

Hillary Clinton has emerged as a surprise contender to become secretary of state in Barack Obama's administration, months after the pair fought a bitter battle for the Democratic presidential nomination
Source: FT.com - US homepage | 14 Nov 2008 | 5:08 am

Spam traffic plunges after report blames server hosting company

The number of such e-mails falls about two-thirds worldwide after Internet providers cut off a server company accused of enabling nefarious activity.

Microsoft Corp. founder Bill Gates' 2004 proclamation that the spam problem would be solved within two years has proved a bitter joke, with unsolicited messages doubling yearly to make up about 90% of mail transmitted on the Internet.

Source: L.A. Times - Business | 14 Nov 2008 | 5:08 am

MGM Mirage CEO quits amid questions about academic record

Source: L.A. Times - Business | 14 Nov 2008 | 3:05 am

Lloyd Morrison links up with Fisher Funds

Infrastructure investor HRL Morrison & Co has taken a 26 per cent shareholding in privately owned fund manager Fisher Funds. Morrison & Co executive chairman Lloyd Morrison will join the Fisher Funds board as a director, while...
Source: New Zealand Herald - Business | 14 Nov 2008 | 3:00 am

Profit warning from Turners Auctions

Turners Auctions Ltd, the largest auction house in New Zealand, has experienced a 22 per cent fall in sales of used imported vehicles in the year to date. The company today forecast a net profit after tax in the year to December...
Source: New Zealand Herald - Business | 14 Nov 2008 | 2:46 am

MGM Mirage chief steps down

Terry Lanni is stepping down as chief executive of MGM Mirage, the world's largest gaming group, as doubts emerged about an MBA he claimed to have received from the University of Southern California
Source: FT.com - US homepage | 14 Nov 2008 | 1:53 am

Dodd: Auto bailout lacks GOP support

The top Democrat on the Senate Banking Committee said Thursday there is not enough support among Republicans to pass a proposed bailout package for the auto industry.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 1:44 am

Democrats hunt for support for auto bailout (AP)

AP - Senate Democrats pressed ahead on Thursday with plans to vote next week on a $25 billion emergency loan plan for U.S. carmakers as the auto industry and business groups readied a lobbying onslaught to overcome GOP opposition.

Source: Yahoo! News: Business | 14 Nov 2008 | 1:43 am

Nation's Vanden Heuvel Says Obama Needs to `Move Boldly'

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 1:11 am

U-turn on toxic assets increases Libor

The key benchmark lending rate between banks rose on Thursday, ending a 23-day decline as traders reacted to the US government's decision to abandon its plan to buy toxic assets
Source: FT.com - US homepage | 14 Nov 2008 | 1:05 am

Rakon profit falls a whopping 66 pc

Rakon's first half net profit has fallen 66 per cent to $1.98 million. The quartz crystal components company today said the result was affected by an increase in depreciation and financing costs plus a higher effective tax rate,...
Source: New Zealand Herald - Business | 14 Nov 2008 | 1:00 am

Business Briefs - Thursday

Merck cervical vaccine helps men. The drug maker's vaccine, which protects women from cervical cancer, has proven successful at combating
Source: Investor's Business Daily: BUSINESS | 14 Nov 2008 | 12:26 am

Drug Maker Targets Infections That Are Resistant To Antibiotics

Hospitals can be dangerous places for sick people.
Source: Investor's Business Daily: BUSINESS | 14 Nov 2008 | 12:26 am

After The Close - Thursday

MTS SYSTEMS (MTSC), a maker of testing and simulation systems, said Q4 EPS rose 33% to 85 cents, beating views by 19 cents. Revenue rose 14% to...
Source: Investor's Business Daily: BUSINESS | 14 Nov 2008 | 12:26 am

In Brief - Thursday

WellCare Health Plans (WCG), which handles health care benefits for 2.4 mil members, tumbled 54% to 9.10 after it said it is in default on some...
Source: Investor's Business Daily: BUSINESS | 14 Nov 2008 | 12:26 am

House Hunters Head For Coasts, Mountains — And Bargains

Homes are selling faster again in some markets. But a deepening recession could threaten the rebound.
Source: Investor's Business Daily: BUSINESS | 14 Nov 2008 | 12:26 am

Trends & Innovations - Thursday

Elderly do well after heart surgery
Source: Investor's Business Daily: BUSINESS | 14 Nov 2008 | 12:26 am

Pandit purchases Citigroup shares

Citigroup moves to quash a boardroom revolt after some directors unhappy at the company's performance considered ousting Sir Win Bischoff as chairman.
Source: FT.com - US homepage | 14 Nov 2008 | 12:26 am

Henry Paulson says rescue package not for carmakers

Henry Paulson, the US Treasury Secretary who has less than three months left in office, said that Congress should devise its own bail-out for America's collapsing car companies and leave his $700 billion rescue package alone.$
Source: Latest Business News from Times Online | 14 Nov 2008 | 12:09 am

Shareholders resigned to defeat over Barclays deal

The Barclays shareholder revolt appeared to be fizzling out last night after Gulf investors putting £6 billion into the bank refused to countenance any watering-down of the terms.
Source: Latest Business News from Times Online | 14 Nov 2008 | 12:00 am

High drama expected in theatre hired for Lehman

The O2’s Indigo room, usually the preserve of after-show parties for the likes of Prince, is set to host an extraordinary piece of corporate theatre.
Source: Latest Business News from Times Online | 14 Nov 2008 | 12:00 am

Threat of worst postwar slump grows as major economies enter recession

The threat of the worst global economic slump in the postwar era loomed larger yesterday as the OECD forecast that the United States, Japan and the eurozone are all sliding into the grip of simultaneous recession.
Source: Latest Business News from Times Online | 14 Nov 2008 | 12:00 am

Iraqi investment

Funds flood in as the security situation improves
Source: BBC News | Business | World Edition | 13 Nov 2008 | 11:42 pm

Buffett's Berkshire falls below $100,000/share (Reuters)

Reuters - Shares of Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N) fell below $100,000 on Thursday for the first time since October 2006, after the company revealed large unrealized losses on derivative contracts tied to the stock market's performance.

Source: Yahoo! News: Business | 13 Nov 2008 | 11:36 pm

Investors pull $31.8B out of stock funds

Jittery investors began taking money out of stock-based mutual funds again this week, after a brief letup last week.

Source: Business and financial news - CNNMoney.com | 13 Nov 2008 | 11:33 pm

VIX Index of U.S. Stock Option Prices Retreats 10% to 59.83

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 11:21 pm

Hedge fund chiefs blame the system for financial crisis

Some of the world's top-earning hedge fund managers told Congress on Thursday that they broadly agreed that largely unregulated financial vehicles ought to be subject to greater disclosure, though they warned of excessive regulation
Source: FT.com - US homepage | 13 Nov 2008 | 11:09 pm

House prices start to bounce back

House prices in Auckland and nationally are up and agents say a rosier picture of the market is finally beginning to emerge. Auckland prices rose from a median $420,000 in September to $433,000 last month and the national median...
Source: New Zealand Herald - Business | 13 Nov 2008 | 11:00 pm

ETF Securities' Bienkowski Discusses Carbon Trading EFT

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 10:42 pm

Most Overpaid CEO Of The Day: Ron Snyder Of Crocs (CROX)

Source: 24/7 Wall St. | 13 Nov 2008 | 10:41 pm

US stocks: Market stages big recovery

Wall Street staged a powerful rebound today in highly volatile trade, sending the Dow industrials up more than 500 points at the close of trade. The blue-chip Dow Jones Industrial Average leapt 552.51 points or 6.67 per cent to...
Source: New Zealand Herald - Business | 13 Nov 2008 | 10:40 pm

Historian Nicholas Best Discusses Last Days of World War I

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 10:39 pm

Worst Corporate Press Release Of The Day: McGraw-Hill (MHP)

From time to time, corporate public relations departments put out information that they later regret having released.

To draw attention to their troubles, they issue a second release which has the term "Kill, Kill, Kill" at the top of it. That is supposed to signal the fact that the original document should be retracted. Very subtle.

McGraw-Hill (MHP) put out a "Kill" release today. Unfortunately, it covered a press release it put out on November 7.

"We are advised by McGraw-Hill Education that journalists and other readers should disregard the news release, Glencoe Literature: California Treasures Approved by California Department of Education, issued Friday, November 7 over PR Newswire, as it contained potentially misleading information."

Douglas a McIntyre

Source: 24/7 Wall St. | 13 Nov 2008 | 10:20 pm

Signs of turmoil grow as G20 looms

Evidence of global economic turmoil mounted as leaders of the G-20 group of nations began to arrive in Washington for this weekend's summit
Source: FT.com - US homepage | 13 Nov 2008 | 10:14 pm

Gallery Founder Boone Celebrates 'Young at Art' in NYC

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 9:45 pm

Hall & Oates Sues Warner Music Over `Maneater' Infringement

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 9:35 pm

Bloomberg's Woolner Discusses State Bans on Gay Weddings

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 9:33 pm

Obama, Democratic Senate Poised to Reshape Judiciary

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 9:31 pm

Phelps Says He's `Stunned' by Depth of Banking Troubles

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 9:24 pm

Storehouse's Edwards Sees Holidays Reshaped by Consumers

Source: Bloomberg - All Podcasts | 13 Nov 2008 | 9:18 pm

Insurers pull cover from GM and Ford suppliers

General Motors and Ford have been given a potentially devastating vote of no confidence by three big European credit insurers, which have removed cover from their suppliers
Source: FT.com - US homepage | 13 Nov 2008 | 9:11 pm

The 52-Week Low Club (C)(CROX)(MSFT)(INTC)(WCG)(GE)

GE (GE) Concerns about dividend and financial services arm. Drops to $14.58 from 52-week high of $39.95.

Citigroup (C) Huge consumer lending portfolio becomes more of a time bomb. Drops to $8.27 from 52-week high of $37.50.

Crocs (CROX) Tremendously bad earnings. Falls to $.79 from 52-week high of $46.80.

Microsoft (MSFT) Signs of tech slowdown are everywhere. Drops to $18.74 from 52-week high of $36.72.

Intel (INTC) Cuts profit forecast. Sells off to $12.87 from 52-week high of $27.99.

Wellcare Health (WCG) Higher than expected medical costs. Down from $6.12 from 52-week high of $58.73.

Douglas A. McIntyre

Source: 24/7 Wall St. | 13 Nov 2008 | 9:00 pm

Aucklanders head off Aussies in design awards

Auckland design company Alt Group was a big winner at the recent AGDA (Australian Graphic Design Association) awards in Adelaide, Australia. The group beat more than 2700 entries to win a supreme Pinnacle award and a number of...
Source: New Zealand Herald - Business | 13 Nov 2008 | 9:00 pm

'Thousands' of jobs may go at ANZ

The Age newspaper in Australia is reporting that hundreds and possibly thousands of jobs will go from the ANZ within weeks. The bank wants to aggressively reduce costs in the face of the economic slowdown. The article does...
Source: New Zealand Herald - Business | 13 Nov 2008 | 8:30 pm

Hedgehogs on the Hill

Like the richest kids hauled to the principal's office, five of the world's billionaire hedge fund managers were called to Congress Thursday for questions about their controversial business, which some have likened to a shadow banking system.

George Soros and the other fund titans didn't face demerits or even expulsion, but the threat of regulation—even punitive regulation—of their highly profitable businesses as lawmakers are seeking to pin blame for the financial meltdown on some identifiable culprits.

Lawmakers delivered a few jabs but there were no fireworks as the five titans were grilled on everything from their compensation to their prescriptions for helping to revive the economy.

Henry Waxman, the California Democrat whose House Committee on Oversight and Reform is holding a series of hearings delving into the financial meltdown, chose Soros, chairman of Soros Fund Management, and the four other hedge principals because each made more than $1 billion last year. The others were James Simons, president of Renaissance Technologies; John Paulson, president of Paulson & Co.; Philip Falcone, senior managing partner of Harbinger Capital Partners; and Kenneth Griffin, chief executive, Citadel Investment Group.

The group responded calmly and confidently, but individually they often mumbled their answers—perhaps showing that they were uncomfortable stepping away from their roles as the supreme behind-the-scenes operators—and drew repeated requests from lawmakers that they speak up and use their microphones.

All five agreed that hedge funds could pose systemic risk to the U.S. economy, and that greater transparency and disclosure could help the economy avoid the problems the current economy is undergoing.

But Waxman and his colleagues had a harder time pinpointing any prescriptions for the 9,000 hedge funds that control $2 trillion, and they certainly didn't get any confessions of culpability from any of the money men. Like everyone else in the financial world, the mega-rich don't take kindly to having their knuckles rapped publicly.

Although he didn't show it, Soros couldn't have been pleased when Indiana Republican Mark Souder loudly scolded him for his funding a program to give sterile needles to heroin and cocaine addicts who risk getting AIDS.

"Your intervention in the drug area is appalling," Souder lectured. "And has done damage to many Americans."

Soros ignored him. Later, Elijah Cummings, a Maryland Democrat, lauded Soros "for everything you've done for the citizens of Baltimore, and noted that his neighbor had asked him how he felt meeting up "with people who have more money than God?"

Whatever reverence Cummings has for Soros didn't prevent him from turning immediately to asking about just how their "staggering" earnings were taxed. He noted that their compensation was taxed at the 15 percent capital gain rate, which is considerably lower than the 25 percent rate that the average teacher or plumber makes.

As Paulson started to reply, Cummings sharply told him to "keep your voice up for my questions!" The most outspoken and the most prone to invoking the benefits that the economy gets from hedge funds, Paulson noted that that lower rate applied only to long-term gains and much of the taxation was at the higher rate.

While others agreed to a higher rate on long-term gains, Paulson demurred.

Clearly conscious of public perceptions, he offered that "virtually all my income is taxed at the highest level."

Falcone chimed in, noting that "98 percent of my income is taxed normally."

Defeated Republican congressman Christopher Shays of Connecticut bored in on how their income should be treated. Soros agreed it should be treated as "regular income."

Then Shays turned to Griffin, whose fund operates out of Chicago, and said he would focus on him because he was the furthest away from his district.

"Have your funds done better than the ones that you have your own money in?" Shays pointedly asked. Griffin said he had several billion in his main funds, and millions more in other funds he managed. Regrettably, he admitted, he has the most exposure to the fund that has performed the worst this year.

Soros offered: "I have one fund and all my assets are in that fund." He noted that he had come out of retirement to save his fortune. And the others all said—under oath—that their personal funds are invested in the funds they manage.

As the hearing wound down—with Simons the only one who ducked out for a break—the men, accompanied by their entourages, mostly fled the cameras in the crowded room through the committee's back entrance. It was unclear how they departed Capitol Hill, but given their financial strata, it was most likely by limo where they could avoid more mixing with the hoi-polloi.

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Source: Portfolio.com: Top 5 | 13 Nov 2008 | 8:30 pm

Recession hits Europe's single biggest economy

Europe's largest economy has now officially tipped into a recession. The normally robust German economy has hit the skids in the third quarter as weakening exports fueled a bigger-than-expected fall in national output, government...
Source: New Zealand Herald - Business | 13 Nov 2008 | 8:00 pm

Emaar eyes cuts amid Gulf property slump

Emaar Properties, one of the world's largest property developers, is preparing to cut jobs to help it steer through the biggest crisis in its 11-year history amid a sharp fall on Dubai's stock markets and a cooling of the Gulf state's property sector
Source: FT.com - US homepage | 13 Nov 2008 | 6:56 pm

Wal-Mart remains upbeat on outlook

Wal-Mart, the world's largest retailer, reported a dramatic improvement in cash generation this year, reinforcing its ability to seize opportunities amid the current global economic turmoil
Source: FT.com - US homepage | 13 Nov 2008 | 6:30 pm

Economy rebalancing China-U.S. trade

China played a huge part in America's consumption and borrowing binge, while Chinese consumers weren't buying much of anything. But Chinese savers plus Western spenders might add up to trouble for both sides. Scott Tong explains
Source: Marketplace | 13 Nov 2008 | 6:10 pm

Treasury hire's gotta know The Street

As President-elect Obama goes about staffing his administration, there's one job that's first among equals -- Treasury Secretary. Commentator John Steele Gordon has some advice on what to look for.
Source: Marketplace | 13 Nov 2008 | 6:10 pm

Wanted: Job seekers with no skeletons

If you want a job in the Obama administration, you better clean up your resume -- and your FaceBook, Flickr and MySpace pages. The applicants are being heavily vetted. Rico Gagliano has the story.
Source: Marketplace | 13 Nov 2008 | 6:10 pm

Hedge fund billionaires on the hot seat

A Congressional committee questioning five prominent hedge fund managers wanted to know what role they might have played in the financial meltdown and whether regulations are needed. Nancy Marshall Genzer has the story.
Source: Marketplace | 13 Nov 2008 | 6:10 pm

Outbreak of buyer's remorse hits retail

As economic worries tighten consumer budgets, a new shopping trend has emerged -- shoppers are returning merchandise to stores in record numbers. Beth Teitell says this buy-then-bring-back behavior is called "circle shopping."
Source: Marketplace | 13 Nov 2008 | 6:10 pm

Public pension funds feel the squeeze

Public pension funds that invested heavily in real estate are taking a big hit, including the real estate portfolio for California's civil servants, which lost more than a third of its value. Stacey Vanek-Smith reports.
Source: Marketplace | 13 Nov 2008 | 6:10 pm

An economist who saw it all coming

In the first installment of our new interview series "Taking Stock," Kai Ryssdal talks to political economist Ann Pettifor about global debt. She's a fellow at the New Economics Foundation in London and author of "The Coming First World Debt Crisis."
Source: Marketplace | 13 Nov 2008 | 6:09 pm

The Last Retailing Redoubt

Things are looking good for Wal-Mart—at least for now.

Wal-Mart Stores reported a better-than-expected 10 percent rise in third-quarter profits on Thursday, as consumers who have all but abandoned pricier retail channels continued to spend at the discounter.

But the world's largest retailer also lowered its outlook for the fourth quarter and the full year, citing continued deterioration in U.S. consumer spending and a strengthening dollar.

Wal-Mart has been a lone bright spot in retail as consumers make deeper and deeper cuts into their spending, eliminating discretionary purchasing and migrating to discount stores for their necessities.

Mall-based apparel stores like the Gap and department stores such Macy's, J.C. Penney, and Nordstrom have been some of the hardest hit over the past year and a half. Consumer-electronics retailers have also hit the skids recently, with Circuit City filing for bankruptcy protection this week and Best Buy slashing its earnings forecast.

Meanwhile, sales at Wal-Mart's U.S. stores open at least a year rose 3 percent during the quarter ending October 31, increasing 2.7 percent at namesake stores and 4.5 percent at Sam's Club.

The Bentonville, Arkansas-based retailer said it earned $3.14 billion, or 80 cents per share, up from $2.86 billion, or 70 cents per share, a year earlier. Earnings from continuing operations were 77 cents per share, exceeding analyst expectations of 76 cents.

Total sales for the quarter rose 7.4 percent to $98.64 billion from $91.86 billion a year earlier.

But global financial turmoil combined with ever-rising unemployment rates only worsening the consumer-spending climate by the day, and the last bastion of retail strength may soon succumb to a deepening recession.

The Labor Department reported on Thursday that initial jobless claims last week increased by 32,000, to a seasonally adjusted 516,000, the second-highest total since 1992.

That bleak consumer environment in the U.S., compounded when the stronger dollar erodes international revenue, has caused Wal-Mart to pare back its earnings expectations going forward.

Wal-Mart has decreased its forecast fourth-quarter earnings per share to $1.03 to $1.07, below analysts' expectations of $1.11.

For the full year, Wal-Mart now expects earnings per share of $3.42 to $3.46, compared with a previous outlook of $3.43 to $3.50. Analysts have been expecting full-year profit of $3.49 per share.

As of mid-morning on Thursday, Wal-Mart's stock was trading down a little over 1 percent on the news, to $52.05.Related Links
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Source: Portfolio.com: Top 5 | 13 Nov 2008 | 6:00 pm

The Crunch Is Becoming a Crisis

In a fresh sign of how the credit crunch is morphing into an economic crisis, the number of Americans filing their initial claims for unemployment insurance soared to more than half a million last week, the highest level in 17 years.

The Labor Department said today that 516,000 people applied for jobless assistance for the first time, up 6.6 percent in a week, well above economists' forecasts. It is the highest number of claims since 1991, a recession year.

The less-volatile four-week moving average also rose, by 2.8 percent, to 491,000.

The total number of people receiving unemployment insurance, meanwhile, rose close to 3.9 million, a level last seen in 1983, also during a deep recession.

The combination of extremely tight credit and workers' worries about their jobs suggests that consumer spending—which accounts for about two-thirds of economic activity in the U.S.—may be headed for a deep and prolonged slump.

It's hard to find any encouraging numbers in the labor market. Employers have cut 1.2 million jobs so far this year—240,000 in the last month. The Bureau of Labor Statistics estimates that more than 10 million Americans are looking for jobs but cannot find any. That is an increase of 2.8 million—39 percent—this year.

Trade statistics could be interpreted as offering some relief. The Commerce Department said today that the nation's trade deficit shrank in September, to $56.5 billion from a revised $59.1 billion in August. The cause for the narrower gap, however, was hardly encouraging: Both imports and exports declined, although imports fell further. Related Links
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Source: Portfolio.com: Top 5 | 13 Nov 2008 | 2:30 pm