Lowe's cuts forecast as quarterly profit drops 24%

Lowe's Cos. on Monday cuts its annual earnings forecast for the year after reporting a 24% drop in fiscal third-quarter profit, hurt by consumers paring back on discretionary and big-ticket spending in the face of an uncertain economic outlook.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 1:14 pm

London Markets: Banks lead fresh downturn in U.K. stocks

Britain's banks led another downturn in London on Monday as prospects for the U.K. economy look further in doubt as home-sale prices continued to drop.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 1:05 pm

Big Time Economists Whistle Passed The Graveyard

The latest poll from The National Association of Business Economists is remarkable in both its optimism and its lack of any grasp of the serious problems the economy faces.

According to Reuters, the group predicted "that real gross domestic product was expected to fall 2.6 percent in the fourth quarter and slump 1.3 percent in the first three months of 2009." In other words, the this quarter of next year will be the low point for the economy.

The poll also shows that most of those surveyed believe that unemployment will peak at 6.5% sometime toward the end of next year. That mean that the economy would lose only another 1 million to 1.5 million jobs.

None of those predictions are likely to be true. With no evidence of a housing bottom and with huge lay-offs at many large companies which are probably being matched or bettered among small businesses, the jobless rate could easily be 8.5% to 10% a year from now. The GDP contraction bottom is likely occur well into next year and last several quarters as the economy is faced with potential car company bankruptcies, more bank failures, and retail spending which should continue to dive well after the holidays.

Once more economists have been laid-off their views may change. They probably don't survey the ones out of work which may be why the numbers are off.

Douglas A. McIntyre

Source: 24/7 Wall St. | 17 Nov 2008 | 1:01 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 1:01 pm

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

Among the companies whose shares are expected to see active trade in Monday's session are AIG, Boeing, Covidien, Genworth, Lowe’s, Nokia and Orbotech.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 1:01 pm

Top Goldman and UBS bankers forgo bonuses

Top executives at Goldman Sachs will receive no bonus for 2008 after the Wall Street group's seven most senior bankers waived their right to a payout.
Source: Financial Times - US homepage | 17 Nov 2008 | 12:59 pm

Lowe's posts lower profit

ATLANTA (Reuters) - Lowe's Companies , the second-largest home improvement retailer, reported lower quarterly profit on Monday as a deepening economic crisis led homeowners to put off big-ticket purchases.
Source: Reuters: Business News | 17 Nov 2008 | 12:58 pm

Citigroup to cut 50,000 jobs: CNBC

NEW YORK (Reuters) - Citigroup Inc plans to cut 50,000 people from its workforce, CNBC television said on Monday, as souring economies and global credit conditions cause the U.S. bank with the farthest reach worldwide to retrench.
Source: Reuters: Business News | 17 Nov 2008 | 12:55 pm

Citigroup to cut 50,000 jobs: CNBC (Reuters)

Reuters - Citigroup Inc plans to cut 50,000 people from its workforce, CNBC television said on Monday, as souring economies and global credit conditions cause the U.S. bank with the farthest reach worldwide to retrench.

Source: Yahoo! News: Business | 17 Nov 2008 | 12:55 pm

Auto bailout: Showdown

For more than a century, the U.S. auto industry has been at the center of the American industrial economy. Events over the next month could determine if that remains the case.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 12:54 pm

Auto executives in spotlight as U.S. weighs bailout

WASHINGTON (Reuters) - U.S. automakers should consider executive shake-ups if it would ensure congressional backing for a bailout supporters say is needed to prevent industry collapse, an architect of the effort said on Sunday.
Source: Reuters: Business News | 17 Nov 2008 | 12:53 pm

Japan in recession, IMF needs money

LONDON (Reuters) - Japan became the latest major economy to fall into recession on Monday with France close behind, and the IMF said it needed at least $100 billion to fight an economic crisis enveloping the world.
Source: Reuters: Business News | 17 Nov 2008 | 12:53 pm

Cancel that Ferrari order! Top banks axe bonuses for their executives

UBS and Goldman Sachs will not pay bonuses to their top executives in 2008, the banking giants reveal.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 12:52 pm

Stock futures drop on economic gloom, Citi eyed

NEW YORK (Reuters) - Stock index futures fell on Monday after Japan became the latest major economy to slide into recession, heightening fears that the global downturn is fast spreading.
Source: Reuters: Business News | 17 Nov 2008 | 12:47 pm

Stock futures drop on economic gloom, Citi eyed (Reuters)

Reuters - Stock index futures fell on Monday after Japan became the latest major economy to slide into recession, heightening fears that the global downturn is fast spreading.

Source: Yahoo! News: Business | 17 Nov 2008 | 12:47 pm

Lowe's posts lower profit (Reuters)

Reuters - Lowe's Companies , the second-largest home improvement retailer, reported lower quarterly profit on Monday as a deepening economic crisis led homeowners to put off big-ticket purchases.
Source: Yahoo! News: Business | 17 Nov 2008 | 12:45 pm

MarketWatch First Take: Introducing the Tory Rate Mechanism -- sterling's best predictor

Britain famously crashed out of the European exchange-rate mechanism in 1992 under the helm of the Conservatives.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 12:45 pm

The Ratings Game: Nokia now cheap enough to trigger wave of upgrades

Nokia Corp.’s second profit warning in as many months triggered a flurry of upgrades on Monday, with a majority of analysts saying their concerns are now priced in and expecting the handset maker to emerge stronger from a tough 2009.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 12:41 pm

Long, painful recession is likely - survey

A survey of leading economists showed Monday that the likelihood of a prolonged recession has increased significantly as economic conditions continue to deteriorate.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 12:39 pm

Top Pre-Market Analyst Downgrades (ANF, ATVI, AA, CB, DELL, ERTS, FCX, MTL, STP)

These are the top research downgrades and negative analyst calls we are seeing this Monday morning with more than two hours to the open:

• Abercrombie & Fitch (ANF) Cut to Market Perform at FBR.
• Activision Blizzard (ATVI) Cut to Neutral at Merrill Lynch.
• Alcoa (AA) Cut to Neutral at UBS.
• Chubb (CB) Cut to Equal Weight at Barclays.
• Dell (DELL) Cut to Neutral at Merrill Lynch.
• Electronic Arts (ERTS) Cut to Neutral at Merrill Lynch.
• Freeport-McMoRan (FCX) Cut to Neutral at JPMorgan.
• Mechel Steel (MTL) Cut to Sell at Citigroup.
• Suntech Power (STP) Cut to Underweight at JPMorgan.

Jon C. Ogg
November 17, 2008

Source: 24/7 Wall St. | 17 Nov 2008 | 12:35 pm

Lowe's sees deep sales drop

The home improvement chain beat estimates for the third quarter, but joined other large retailers in warning of a worse-than-expected holiday quarter.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 12:35 pm

Currencies: Dollar mostly lower in choppy trade after G20 summit

A weekend meeting of leaders from the world’s top developed and emerging economies had little impact on currency markets Monday, strategists said, with the dollar mostly lower in choppy market conditions.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 12:35 pm

Indications: U.S. stock futures lower on G20 skepticism

U.S. stock futures traded lower Monday on skepticism about the pledge from world leaders to tax less and spend more to help the world economy out of the funk that has led to stock prices dropping 40% this year.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 12:32 pm

Oil price slides after G20 meeting and recession evidence

The price of oil fell today to just above the two-year low set last week after Japan, the world's second-largest economy, formally entered recession.
Source: Latest Business News from Times Online | 17 Nov 2008 | 12:31 pm

Auto executives in spotlight as U.S. weighs bailout (Reuters)

Reuters - U.S. automakers should consider executive shake-ups if it would ensure congressional backing for a bailout supporters say is needed to prevent industry collapse, an architect of the effort said on Sunday.

Source: Yahoo! News: Business | 17 Nov 2008 | 12:29 pm

U.S. in recession, jobless to peak at 7.5 percent: survey

WASHINGTON (Reuters) - The U.S. economy is in recession and will contract at a faster pace in the fourth quarter, extending the decline into early 2009 as high unemployment crimps consumer spending, a survey showed.
Source: Reuters: Business News | 17 Nov 2008 | 12:27 pm

Freddie Mac could lose $20-$40 billion in 2009: Friedman

(Reuters) - Freddie Mac could post losses totaling $20 billion to $40 billion in 2009, hurt by higher credit costs and write-downs in mortgage assets, an analyst at Friedman Billings Ramsey said.
Source: Reuters: Business News | 17 Nov 2008 | 12:25 pm

Stocks headed for a fall

Stocks were set for a lower open on Monday as investors weigh the possibility of a bailout for the automobile industry.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 12:22 pm

Japan in recession, IMF needs money (Reuters)

Reuters - Japan became the latest major economy to fall into recession on Monday with France close behind, and the IMF said it needed at least $100 billion to fight an economic crisis enveloping the world.

Source: Yahoo! News: Business | 17 Nov 2008 | 12:12 pm

Obama: Stimulating economy top priority

President-elect Barack Obama said stimulating the economy is a top priority -- even if it means adding to the nation's growing deficit.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 12:11 pm

GM to sell remaining Suzuki stake

General Motors is to sell its remaining 3% stake in Japan's Suzuki Motor for Y22.4bn, but the move will have little impact on the cash-strapped carmaker's finances
Source: Financial Times - US homepage | 17 Nov 2008 | 12:04 pm

Treasury most important Obama pick - poll

President-elect Barack Obama will continue to sign off on cabinet positions in the coming weeks, but the most important decision may be the cabinet member who signs our money.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 12:03 pm

Economic Report: Economists more bearish on economy, NABE survey shows

The U.S. is in for a "prolonged" recession dragging into 2009, and joblessness may climb to a 7.5% rate, a full percentage point higher than the current unemployment rate, the National Association for Business Economics says.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 12:02 pm

US economy 'already in recession'

The US economy is already in recession, according to a panel of forecasters, and is set to shrink by 2.6% in the fourth quarter.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 11:51 am

Credit freeze: What Lehman wrought

Lehman Brothers' epic collapse two months ago marked a stunning turning point in the financial markets from which Wall Street is still recovering.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 11:47 am

Eurozone swings to trade deficit

The eurozone records a trade deficit in September compared with a surplus for the same month last year.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 11:47 am

UBS adopts new exec pay model, axes 2008 bonuses

ZURICH (Reuters) - Swiss bank UBS AG, under pressure at home to give up on hefty bonus schemes in the face of its poor performance, said on Monday it will introduce a more transparent pay system for top executives.
Source: Reuters: Business News | 17 Nov 2008 | 11:40 am

UBS adopts new exec pay model, axes 2008 bonuses

ZURICH (Reuters) - Swiss bank UBS AG, under pressure at home to give up on hefty bonus schemes in the face of its poor performance, said on Monday it will introduce a more transparent pay...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:40 am

Fitch says may cut Toyota rating on industry slump

TOKYO (Reuters) - Fitch Ratings said it may cut Toyota Motor Corp's top-notch credit ratings, citing a downturn in the global auto industry and stronger yen.
Source: Reuters: Business News | 17 Nov 2008 | 11:36 am

A Sucking Sound At The IMF

The IMF will need more money. That should come as no surprise given the number of countries likely to come to it for bailout cash.

According to Reuters, "International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn told the BBC his organization was likely to need at least $100 billion in extra funding over the next six months to help countries out of the mire."

Where does that money come from?

The answer is almost certainly over-stretched central banks in the large economies who need the capital to keep their own nations from falling into a deeper and deeper recession.

But, the modest-sized countries that need the money cannot be allowed to fail, so the national debts in the US, large EU countries, and China are about to rise.

Recessions are the fathers of unbalanced budgets, so there is nothing new here.

Douglas A. McIntyre

Source: 24/7 Wall St. | 17 Nov 2008 | 11:35 am

Europe Markets: Shares in Europe fall again, Nokia bucks trend

European shares decline as several heavyweight financials lose ground and amid more gloom over the global economy, although Atos Origin and Nokia advance.

Source: MarketWatch.com - Top Stories | 17 Nov 2008 | 11:35 am

Oil prices fall as OPEC dampens output cut prospects

Oil prices fell on Monday as recession in Japan stoked fears about weak global demand, and after the OPEC crude cartel talked down a possible cut to output, analysts said. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:27 am

Euro-zone trade deficit swells in September

The euro-zone swung to a trade deficit of 5.6 billion euros ($7.1 billion) in September from a 2.9 billion euro surplus last year as euro nations imported far more than they sold abroad,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:25 am

Hong Kong's main stock index ends flat

Hong Kong stocks ended flat Monday in razor-thin trade as gains in mainland China's market helped offset Wall Street's dour performance and news Japan had slipped into recession. The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:24 am

Will Citigroup (C) Be Sold To JP Morgan (JPM) Or Taken Over Like AIG (AIG)?

If the press is right, Citigroup (C) is about to hold a big pep rally with its CEO Vikram Pandit raising the cheer followed by an announcement that it will fire another 35,000 people. Morale will never be better.

But, the markets are wise, and they are saying that there is a very reasonable chance Citi may not survive as an independent entity. It is no secret that the bank's shares, which are trading below $10, are off much more over the last year than those of the other large US money center banks

Citi is at a tipping point like a cow in a field at midnight. If its stock continues to drop sharply, the market and the bank's customers may begin to lose faith and withdraw assets or cease doing business with the firm. If Citi announces that its financial fortunes will get worse between now and its next earnings report, it may say that the damage within some of its division cannot be contained.

That leaves the question of whether Citi becomes the next Wachovia or the next AIG (AIG). If the Fed and Treasury become concerned enough about the bank and have to intercede with more capital, the government may pressure Citi's board to sell the company to the highest bidder within its own industry. That may be the well-run JP Morgan (JPM) The FDIC might have to guarantee some of Citi's assets to accommodate a transaction, but there is recent precedent for the government to bend in that direction.

If the problems at Citi deteriorate quickly and its falls, as it certainly does, into the "too big to fail" bucket, the government may simply have to pour cash into the bank in exchange for a majority ownership position. That would involve bringing in new management to sell of enough assets to get the bank stable. The government would hope against hope that those sales would bring in enough money for the taxpayer to get some return.

Citi's share price is a signal and it may become brighter and more troubling as the year moves toward a close.

Douglas A. McIntyre

Source: 24/7 Wall St. | 17 Nov 2008 | 11:14 am

Tanzi denies role in fraud

Parmalat founder Calisto Tanzi on Monday denied a role in orchestrating fraud that led to the stunning 2003 failure of his dairy empire as a three-year-old trial in the case drew to a...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:13 am

Homeowners slash asking prices £6,500 in a month

British homeowners are slashing the average asking price on their property by as much as £6,500, as some estate agents reduce the value of deals by as much as a fifth in an effort to shift houses.
Source: Latest Business News from Times Online | 17 Nov 2008 | 11:10 am

Private equity's basic math problem

Not since fourth grade have so many sophisticated investors been so troubled by a basic math equation. An asset-allocation problem called the "denominator effect" is forcing the selloff of billions in private equity and alternative investments.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 11:10 am

Oil below $56 on Japanese slide

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 11:10 am

Iceland guarantees some deposits to secure loan

The British government said Monday it would welcome the Icelandic government guaranteeing British savers' deposits in collapsed internet bank Icesave, while Iceland said its plan to...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:04 am

Swiss bank UBS to scrap chairman's bonus for 2008

UBS said Monday it would not pay a bonus to its chairman and board of directors for 2008 after the bank was bailed out by the Swiss government amid billions of dollars in losses from the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:02 am

Six-Point Plan to Restore Respect to Congress From Dismal 12-23% Approval, Lower Than Bush

Robert Weiner, Ex-White House-Hill Senior Staff 20+ Years, Offers Proposal in Roll Call Article Today WASHINGTON, Nov. 17 /PRNewswire-USNewswire/ -- "Despite...
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 11:00 am

Gunmen seize ship and kidnap 10 on board in Nigeria

PORT HARCOURT, Nigeria, Nov 17 (Reuters) - Gunmen have hijacked a cargo ship in the Niger Delta and kidnapped at least ten people on board, a Nigerian military spokesman said on Monday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 10:58 am

German public bank KfW posts nine-month loss of 1.8 billion euros

The German state-owned development bank KfW has recorded a loss of 1.8 billion euros (2.26 billion dollars) for the first nine months of the year, a statement said on Monday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 17 Nov 2008 | 10:58 am

GE (GE) To Buy Assets To Add To Those It Can't Run Now?

The business principle of spreading risk makes sense unless it is only risk which is being spread with no hope for reward. GE (GE) has not made much of a case for being a conglomerate. Over the last year, its stock is down from nearly $39 to about $16. That puts it off about 58% compared to 33% for the DJIA.

Much of the concern about GE stems from its exposure to credit problems due to the assets in its financial arm. But, that is only a piece of the problems at the firm. Its industrial, media, and entertainment assets have posted only modest returns in the two years. GE's huge infrastructure unit has carried the earnings load. That may be why so many investors and analysts want the company broken up.

If GE's board and management want to hold the firm as the entity that exists today, it would be appropriate to manage the current assets well and perhaps weed out the units which are unlikely to ever turn in remarkable performances.

Instead GE is talking about expanding and some of the acquisitions which might be involved would be in the industries where the firm already has weaknesses. According to the FT, GE CEO Jeffrey Immelt suggested that the poor economy might benefit his company. “There are going to be some opportunities in media consolidation, in infrastructure, oil and gas, aviation,” Mr Immelt said. “And my hope is that we can play in some of those as time goes on.”

In Never-Never Land, escapism is part of the landscape. It may not work as well in managing America's largest public companies.

In the first three quarters of this year, the segment profits fell in two of GE's five divisions. In another, the figure was basically flat. GE may be a great company and it may have tremendous assets, but it has not shown that it is a great steward of those assets. It might be wise to work on that issue before moving into the world of M&A, even it some of the companies that GE covets are available cheap during the recession.

Douglas A. McIntyre

Source: 24/7 Wall St. | 17 Nov 2008 | 10:54 am

Global stocks shaky amid economic woes

Global stocks wavered Monday on news that Japan's economy, the second largest in the world, had fallen into recession.

Source: Business and financial news - CNNMoney.com | 17 Nov 2008 | 10:35 am

UK food exports 'eye record high'

Rising sales to Eastern European nations mean exports of UK food and drink are on track for a record high in 2008, a report suggests.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 10:35 am

Auctioning Detroit To The Japanese And Germans (TM)(GM)(F)(HMC)

When it comes to the trouble with the US car industry and a potential government bailout, the first and most important consideration is that no one is at fault. The dog ate everyone's homework.

Yesterday, GM (GM) chief Richard Wagoner said the a collapse of his industry would ruin the US economy. He did not say that his company had any hand in the matter. Wagoner's comments were a foretelling, not a confession.

At about the same moment that Wagoner was droning on, UAW boss Ron Gettelfinger said his union and its contracts with The Big Three did not do a thing to bring the industry down. The fact that US manufacturers have a labor cost per vehicle higher than their Japanese counterparts does not count for much. Gettelfinger did volunteer that the credit crisis and high fuel costs had savaged the auto business even though both conditions are less than a year old and gas prices are falling.

Over in Congress, members are fashioning one of the most complex pieces of legislation seen in the history of the Capitol. They want fuel emission restrictions as part of a loan package. They want management salary caps, and an oversight board which could veto any major decisions by the companies seen as unwise. That would mean turning down 90% of a car firm management's initiatives. It would also prolong a process which needs to be finished in a remarkably short period of time.

One of the most powerful arguments for saving The Big Three is that consumers will not buy a car from a bankrupt car company. People get concerned about whether their warranties will be voided or if dealers will be in business to fix their cars. Since Detroit models have more defects that many from Japan that part about repairs is fair.

That does not leave many avenues out of the trouble, but it does make a powerful argument for one.

According to The New York Times, "many industry experts say the big foreign makers are established enough to take control of the industry and its vast supplier network more quickly than is widely understood." But, the risk that this would happen in a matter of weeks is substantial. Auto parts companies are already financially troubled and may not last that long.

Detroit's assets are remarkably valuable if they are stripped of their union obligations and debt loads. Several Japanese and European car companies have the management capacity and balance sheets to handle the costs of integrating the American auto companies into their firms. The list of corporations which would have to be interested would include Toyota (TM), Honda (HMC), VW, and the Nissan-Renault alliance.

For the government to make an auction work, it would have to provide bridge financing to the two US car companies which face the greatest risk of Chapter 11-GM and Chrysler. But, instead of the money going to keep operations which will still be hobbled by their balance sheet and employee obligations, the capital would be available for the period it would take to run an auction. The federal government would need to appoint a receiver, probably a federal judge, to manage the process.

The right hands to hold Detroit's assets are not the hands of their managements or their unions. These groups have already demonstrated that they are not competent stewards and will nearly always act in their own self-interests. To break that cycle, the ownership of the American industry needs to be held abroad by companies which have proved over a long period of time that the industry is not the problem. Detroit is.

Douglas A. McIntyre

Source: 24/7 Wall St. | 17 Nov 2008 | 10:30 am

Shares on the slide

See how some of the main global stock indexes have fared during the financial turmoil of 2008
Source: BBC News | Business | World Edition | 17 Nov 2008 | 10:19 am

Hard-up GM to sell Suzuki stake

Struggling General Motors is selling its 3% stake in the Japanese carmaker Suzuki for $230m (£156m) to raise cash.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 9:43 am

Pound rebounds despite Osborne's warning

Sterling rose against the dollar in early trading today, despite forecasts by George Osborne, the Shadow Chancellor, that higher government borrowing could lead to a run on the currency.
Source: Latest Business News from Times Online | 17 Nov 2008 | 9:31 am

Oil prices fall on economy fears

Oil prices fall on more bad economic news and after Opec hinted it would not cut oil production soon.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 8:59 am

Media Digest 11/17/2008 Reuters, WSJ, New York Times, FT, Bloomberg.

Source: 24/7 Wall St. | 17 Nov 2008 | 8:50 am

'Close to 3m UK jobless' by 2010

The CBI says the UK economy will shrink by 1.7% in 2009, with unemployment rising to nearly 3 million by 2010.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 8:42 am

Into the red

Fine wine prices fall as economic woes hit the super rich
Source: BBC News | Business | World Edition | 17 Nov 2008 | 8:25 am

Asia Market and Europe Open 11/17/2008

Markets in Asia were mixed.

The Nikkei rose .7% to 8,523.

The Hang Seng fell .2% to 13,510.

The Shanghai Composite was up 2.2% to 2,020.

The FTSE opened down .7% to 4,024. The Dax was off .4% to 4,693. The CAC 40 fell .6% to 3,270.

Data from Reuters.

Douglas A.McIntyre

Source: 24/7 Wall St. | 17 Nov 2008 | 8:19 am

Kingfisher chief to sell 25% stake in airline

Vijay Mallya, the Indian entrepreneur, is preparing to sell 25 per cent of his Kingfisher airline to a foreign rival as the Indian aviation industry continues to haemorrhage cash.
Source: Latest Business News from Times Online | 17 Nov 2008 | 8:15 am

Avis Europe to cut 300 jobs amid profits slump

Avis Europe this morning announced it was cutting one in 20 jobs across the group as it gave warning that its full-year profit would fall short of last year.
Source: Latest Business News from Times Online | 17 Nov 2008 | 8:09 am

Box office

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

Explain reason for program cuts to lessen workers' resentment

Dear Karen: I'm cutting costs and wondering whether cutting employee programs will cause resentment.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

The week ahead in business

The stock market is trying to form a bottom, but the economic landscape keeps changing.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

Stonefire Grill serves a need

The fast-casual chain is doing steady business even as other restaurants struggle. Restaurateurs across the nation...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

SLS Hotel aims to stay ahead of the curve

A nightclub entrepreneur turned hotelier mixes edgy and elegant to draw upscale guests.

In case you were worried that flamboyant nightclub creator Sam Nazarian wasn't going to go sufficiently over the top putting together his new SLS Hotel at Beverly Hills, rest assured. He did.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

Explain reason for program cuts to lessen workers' resentment

Dear Karen: I'm cutting costs and wondering whether cutting employee programs will cause resentment.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

What helped Obama win election now could hurt him

The severity of the nation's economic woes requires him to act before taking office or face an even deeper crisis, experts say. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

Sony's future film slate highlights family's value

Having missed out on a lucrative box-office trend, the studio is broadening its strategy.

Sony Pictures could begin to look more like Disney.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

The week ahead in business

The stock market is trying to form a bottom, but the economic landscape keeps changing.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

SLS Hotel aims to stay ahead of the curve

A nightclub entrepreneur turned hotelier mixes edgy and elegant to draw upscale guests. In case you were worried...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

Sony's future film slate highlights family's value

Having missed out on a lucrative box-office trend, the studio is broadening its strategy. Sony Pictures could...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

'Quantum of Solace': James Bond blasts to No. 1 at the box office

The film beats expectations, earning $70.4 million. 'Madagascar' and 'Role Models' hold their own too on an all-around good weekend for movies. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

Automakers' pain felt far beyond Detroit

The Big Three's fortunes steer thousands of suppliers nationally. One report puts 2.5 million jobs at risk if a carmaker fails. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

Nara Bank in Koreatown is No. 1 in California in number of female executives

The Koreatown lender leads in California, with women in 5 of 6 top positions. For the second consecutive year,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

'Quantum of Solace': James Bond blasts to No. 1 at the box office

The film beats expectations, earning $70.4 million. 'Madagascar' and 'Role Models' hold their own too on an all-around good weekend for movies.

As countless villains have learned, there is just no stopping James Bond.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

What helped Obama win election now could hurt him

The severity of the nation's economic woes requires him to act before taking office or face an even deeper crisis, experts say.

The wave of bad economic news that helped carry Barack Obama to an election victory this month now threatens to swamp his presidency even before he takes the oath of office Jan. 20.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

Stonefire Grill serves a need

The fast-casual chain is doing steady business even as other restaurants struggle.

Restaurateurs across the nation are conducting focus groups, cooking up promotional campaigns and generally struggling in vain to get their old diners to start eating out again.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

Automakers' pain felt far beyond Detroit

The Big Three's fortunes steer thousands of suppliers nationally. One report puts 2.5 million jobs at risk if a carmaker fails.

Ford Motor Co.'s F-150 pickup is the top-selling vehicle in America with more than 436,000 purchased through October. But when people stop buying the F-150 -- and 26% fewer have been sold this year than last -- it's not just Ford and its workers that suffer.

Source: L.A. Times - Business | 17 Nov 2008 | 8:00 am

Box office

Source: Infocious RSS raw feed - channel BNPaperBusiness | 17 Nov 2008 | 8:00 am

Japanese economy now in recession

Japan's economy falls into its first recession since 2001 after shrinking by 0.1% in the July to September quarter.
Source: BBC News | Business | World Edition | 17 Nov 2008 | 7:57 am

Asos defies downturn with 107% sales rise

Asos, the online fashion retailer, has bucked the trend on the high street with a sharp increase in profits for the first half of the year and a forecast of "cautious optimism" for the months ahead.
Source: Latest Business News from Times Online | 17 Nov 2008 | 7:53 am

Unemployment to near 3m next year, says CBI

Unemployment will rise to almost three million next year and the economy will contract by almost two per cent, following a "dramatic drop-off in business conditions" over the past two months.
Source: Latest Business News from Times Online | 17 Nov 2008 | 7:33 am

Australian Stocks: Market closes down over two per cent

SYDNEY- The Australian share market has closed down two and a half per cent as investors remain concerned about the continuing gloomy economic outlook. The benchmark S&P/ASX200 index was down 95.1 points, or 2.54 per cent, at 3,653,...
Source: New Zealand Herald - Business | 17 Nov 2008 | 7:13 am

NZ stocks: Market closes down

The New Zealand sharemarket opened down and stayed down but did manage to finish off its lows. The benchmark NZSX-50 index closed down 25.753 points, or 0.93 per cent, at 2741.915. Volume was worth $57.26 million. There were 26...
Source: New Zealand Herald - Business | 17 Nov 2008 | 6:21 am

Currency: Dollar weak on offshore market trends

The New Zealand dollar started the week with a big step down and then went sideways. At 8am today the NZ dollar was worth US55.43c, down from US56.65c on Friday, and by 5pm it was US55.35c. ANZ said Wall Street's poor performance...
Source: New Zealand Herald - Business | 17 Nov 2008 | 5:46 am

Japan slips into recession

The Japanese economy entered its first recession in seven years, as growth declined for the second quarter running by a wider margin than expected, raising fears the situation could deteriorate amid the global downturn
Source: Financial Times - US homepage | 17 Nov 2008 | 5:25 am

UPS won't give annual peak shipping day projection (AP)

AP - Weak October retail sales and the uncertainty of the upcoming holiday season amid the worst financial crisis to hit the U.S. in decades has prompted shipping giant UPS Inc. to decide not to release a projection for the amount of packages it expects to deliver on its busiest day of the year.
Source: Yahoo! News: Business | 17 Nov 2008 | 5:03 am

American Express Nowhere Near Its Credit Limit (Deal of the Day)

AmEx has plenty of cash to weather this crisis. A misunderstood stock.

Source: SmartMoney.com | 17 Nov 2008 | 5:00 am

Card Issuers Get Drastic on Plastic (Deal of the Day)

Credit-card issuers are cracking down. Here's what you should expect.

Source: SmartMoney.com | 17 Nov 2008 | 5:00 am

EBay's Allure Is Going, Going, Gone (Consumer Action)

Between fees and fixed pricing, it's tough to find a good deal on eBay.

Source: SmartMoney.com | 17 Nov 2008 | 5:00 am

Lion Nathan-Coke takeover bid to create massive drinks empire

The maker of Lion Red, Speight's, Waikato Draught, Canterbury Draught, Steinlager and Mac's beer is trying to take over the bottler of Coca-Cola and Schweppes. As is often the case a deal being announced in Australia has huge ramifications...
Source: New Zealand Herald - Business | 17 Nov 2008 | 4:21 am

Japan falls into recession after exports plunge

The Japanese economy, the world’s second largest and a bellwether for corporate and consumer strength across the globe, has officially fallen into recession, its Government admitted this morning.
Source: Latest Business News from Times Online | 17 Nov 2008 | 3:04 am

Japan into recession

TOKYO - Japan fell into a recession in the third quarter for the first time since 2001, as the impact of the global slowdown took its toll on the world's No. 2 economy. Japan's gross domestic product, or the total value of the...
Source: New Zealand Herald - Business | 17 Nov 2008 | 2:00 am

Recession in NZ will 'hit trough mid-2009'

The New Zealand recession will deepen and trough around mid-2009, according to Goldman Sachs JB Were's economic outlook. The financial service firm was predicting lower economic growth and the official cash rate (OCR) to be at...
Source: New Zealand Herald - Business | 17 Nov 2008 | 1:30 am

Goldman CEO, 6 others forgo 2008 bonuses

NEW YORK (Reuters) - Goldman Sachs Group Inc said on Sunday its Chief Executive Lloyd Blankfein and six other top officials will not get bonuses for 2008.
Source: Reuters: Business News | 17 Nov 2008 | 1:18 am

US economy 'sinking into the depths' - survey

WASHINGTON - The United States is sinking deeper into the economic doldrums, and it's likely to stay there for a while. That's part of the latest outlook from forecasters in a survey to be released tomorrow by the National Association...
Source: New Zealand Herald - Business | 17 Nov 2008 | 1:00 am

Infratil boosts earnings despite share price woes

Infrastructure and utilities investor Infratil has reported a 23 per cent rise in earnings for the six months to September, with most of its investments showing gains for the period over the same time last year. Wellington Airport...
Source: New Zealand Herald - Business | 17 Nov 2008 | 1:00 am

Strike threat at Ports of Auckland renewed

A new notice of strike action has been issued by the Maritime Union of New Zealand (MUNZ)to Ports of Auckland. Following Friday's withdrawal of a technically defective notice, MUNZ had now issued a new notice of a 24-hour strike...
Source: New Zealand Herald - Business | 17 Nov 2008 | 12:30 am

Big ambitions inside Santander's giant HQ

It is dubbed “Guantanamo” by the 6,700 employees who work here, perhaps because of its relative isolation, perhaps because of the security measures that visitors must pass through to get in, but that is where any resemblance between the notorious US maximum security prison in Cuba and Europe's biggest financial campus ends. Welcome to Santander City, home to the eurozone's biggest bank.
Source: Latest Business News from Times Online | 17 Nov 2008 | 12:00 am

Icap reassures investors as broker shares in freefall

Michael Spencer, the chief executive of Icap, will try to reassure investors tomorrow that interdealer bond brokers (IDBs) such as his, one of the most successful sectors in the City throughout the credit crunch, are not running out of steam.
Source: Latest Business News from Times Online | 17 Nov 2008 | 12:00 am

Half year profit for Fronde

Business transactions company Fronde has announced it turned in a $1 million net profit for the six months to September 30. It was a turn-around of $4m on the $3.1m loss for the same period last year. Chief executive Ian Clarke...
Source: New Zealand Herald - Business | 17 Nov 2008 | 12:00 am

Traders to collect big on slick bet

Investors who placed summer bets that oil prices would fall below $100 a barrel are set to make huge profits on Monday, with some speculators reaping a return of more than 2,000 per cent in less than six months
Source: Financial Times - US homepage | 16 Nov 2008 | 11:35 pm

GE chief signals appetite for media assets

Jeffrey Immelt has declared his interest in buying media assets in a sign that a slumping economy has not shaken General Electric's confidence in its television and film business, NBC Universal
Source: Financial Times - US homepage | 16 Nov 2008 | 11:35 pm

Citi chief looks to rally the troops

Vikram Pandit, Citigroup's chief executive, will on Monday attempt to rally his troops with a speech to employees aimed at restoring internal morale and allaying investors' fears over the company's strategy and share price
Source: Financial Times - US homepage | 16 Nov 2008 | 11:35 pm

Rival forecast to catch YouTube

YouTube is in danger of being upstaged commercially by a smaller upstart backed by News Corporation and NBC Universal as the video-sharing site struggles to make its massive global audience appeal to advertisers
Source: Financial Times - US homepage | 16 Nov 2008 | 11:35 pm

China hints at aircraft carrier project

The world should not be surprised if China builds an aircraft carrier but Beijing would use such a vessel only for offshore defence, a senior official of the Chinese Ministry of National Defence has told the Financial Times
Source: Financial Times - US homepage | 16 Nov 2008 | 11:32 pm

Brilliant Move: Goldman Sachs (GS) Says Top Seven Execs Will Skip 2008 Bonuses

Source: 24/7 Wall St. | 16 Nov 2008 | 9:32 pm

World leaders unite to restore growth

World leaders pledged to shore up global growth, avoid protectionism and move quickly on global regulatory reform at the conclusion of the Group of 20 summit in Washington at the weekend
Source: Financial Times - US homepage | 16 Nov 2008 | 9:30 pm

Iraq agrees US three-year troop stay

After months of painstaking negotiations between Baghdad and Washington, the Iraqi cabinet approved a bilateral agreement allowing US troops to remain in the country for three more years
Source: Financial Times - US homepage | 16 Nov 2008 | 7:44 pm

Republicans Begin To Turn Against Detroit Bailout, Increases Chances of Bankruptcies

With the Fed and Treasury apparently willing to sit on the sidelines while GM (GM) and Chrysler run low on money and head toward possible bankruptcies, it has been left to Congress to put together a bailout package, probably $25 billion in loans.

For the legislative route to be successful, Senate Republicans would have to back that financial rescue in fairly large numbers to get the bill to the president's desk. That is now less likely to happen than it appeared at the end of last week.

According to Reuters, "A top Republican senator says he will fight a Democratic plan to bail out U.S. automakers. The opposition by Sen. Richard Shelby and other GOP lawmakers raises doubts about whether the plan will pass in this week's postelection session."

That leave the issue to the new president and the new Congress.

Many analysts believe that GM will be too low on money by the time that Barack Obama is sworn to have adequate cash to be able to pay key suppliers. That will leave auto parts companies with the choice of extending credit at a substantial risk or letting GM shut down operations, further hurting its chances of surviving. One argument is that the supply companies will bet that GM will be bailed out and that it will continue to pay its bills.

If GM fails and it not immediately sold to a healthy firm like Toyota (TM) or VW, there is a very reasonable chance that it will take a number of auto suppliers who rely on it for most of their revenue under as well. A lack of supply of essential parts could cripple manufacturing at the production facilities of Ford (F) and other firms that assemble vehicles in the US.

In other words, it would be a game of dominoes from hell.

Douglas A. McIntyre

Source: 24/7 Wall St. | 16 Nov 2008 | 4:29 pm

Gulf stocks plunge as G20 fails to halt panic (AFP)

AFP - Stock markets in the Gulf states plunged on the week's opener Sunday as panic from the fallout of the global economic crisis continued to dampen investor sentiment.

Source: Yahoo! News: Business | 16 Nov 2008 | 12:16 pm