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 | 4 Dec 2008 | 12:31 pm

Merck (MRK): People Won't Even Buy Drugs

So much fore feeling better in a bad economy.

Merck (MRK) offered lackluster guidance for next year and the stock is off before the open.

According to Reuters, "Merck said it expected earnings, excluding special items, of $3.15 to $3.30 per share. Analysts polled by Reuters Estimates were expecting $3.52, on average."

Get well soon.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 12:29 pm

Indications: U.S. stock futures flattish ahead of auto hearings

U.S. stock futures were flattish Thursday as auto executives headed back to Capitol Hill in their bid to get aid for their ailing industry, retailers reported declining sales and Merck & Co. issued a cautious earnings outlook.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 12:26 pm

England and Sweden make big rate cuts

LONDON (Reuters) - Britain and Sweden made dramatic interest cuts on Thursday to shore up their economies in the face of worsening financial news and Europe was expected to follow.
Source: Reuters: Business News | 4 Dec 2008 | 12:24 pm

Nokia sees 2009 handset market down 5 percent or more

HELSINKI (Reuters) - Global mobile phone industry sales volume will fall more than expected as consumers cut spending, the world's top cell phone maker Nokia said on Thursday in its second warning in three weeks.
Source: Reuters: Business News | 4 Dec 2008 | 12:21 pm

France unveils huge stimulus plan

French President Nicolas Sarkozy unveils a 26bn-euro ($33bn, £23bn) stimulus plan to help France fend off financial crisis.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 12:14 pm

London Markets: London shares off highs after BoE cuts rates to 2%

London’s top index fell back from early highs on Thursday, after the Bank of England cut its key interest rate to 2%, as widely expected.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 12:14 pm

Pound hits new low against euro

The British pound hits a historic low against the euro as markets expect the Bank of England to slash interest rates.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 12:12 pm

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

Among the companies whose shares are expected to see active trade in Thursday’s session are a number of retailers – including Aeropostale, Costco, Hot Topic, Mothers Work, Saks, Stage and Zumiez – as well as Adobe Systems, Copart, Ford, GM, Philips, Sanderson Farms, State Street and Toll Brothers.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 12:09 pm

Bombardier results beat estimates as revenue rises

NEW YORK (Reuters) - Bombardier said on Thursday that quarterly earnings more than doubled, helped by an 8 percent rise in revenue, but new orders for both airplanes and trains fell as tough economic conditions weighed on demand.
Source: Reuters: Business News | 4 Dec 2008 | 12:08 pm

China urges US to stabilise its economy

China urged the United States to spare no effort to stabilise its economy and financial markets to help avert a global recession
Source: Financial Times - US homepage | 4 Dec 2008 | 12:07 pm

Stocks set for cautious start

U.S. stocks were set to open little changed Thursday as investors awaited automakers' testimony on Capitol Hill about $34 billion in bailouts as well as a key reading on holiday store sales.
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 12:05 pm

Eurozone set for steep rate cut

The European Central Bank is set to deliver a sharp cut in interest rates, as data confirms that the eurozone is in recession.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 12:05 pm

Bank of England cuts interest rates 100 bps to 2% (Reuters)

Reuters - The Bank of England slashed interest rates by a full percentage point on Thursday to shore up Britain's crumbling economy and head off the threat of deflation.
Source: Yahoo! News: Business | 4 Dec 2008 | 12:05 pm

Post-Mumbai: Traveling for business, safely

If you do much business travel overseas, last week's three days of terror attacks in Mumbai, India's financial capital, had to give you pause -- especially since the deadly attacks struck two luxury hotels popular with foreigners, and a restaurant, the Leopold Cafe, that was a gathering place for visitors from abroad.
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 12:04 pm

Sweden cuts interest rates to 2%

Sweden's central bank, the Riksbank, cuts its key interest rate by a record 1.75 percentage points to 2%.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 12:03 pm

Bank of England slashes key rate to 2%

The Bank of England on Thursday slashed its key lending rate by a full percentage point to 2%, the latest in a series of steps taken by policy makers seeking to minimize the depth and length of a potentially long-lasting recession.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 12:03 pm

Bank cuts interest rates to 2%

The Bank of England has cut interest rates by one percentage point to 2%, the lowest level in half a century.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 12:01 pm

Bank slashes rates 1% to historic low

The Bank of England today ordered a further, drastic one percentage point cut in interest rates to 2 per cent, a historic low not seen since November 1951.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:00 pm

Big ideas: Flying cars, GPS cows, blimp energy

Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 11:59 am

Toll Brothers posts loss

(Reuters) - Toll Brothers Inc on Thursday reported a Q4 loss of $0.49 a share.
Source: Reuters: Business News | 4 Dec 2008 | 11:56 am

Barbie beats back Bratz

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 11:55 am

Credit Suisse plans 5,300 job cuts after $2.5 billion loss

Credit Suisse will cut roughly 5,300, or 11%, of its jobs after posting a loss of around 3 billion Swiss francs ($2.5 billion) for the first two months of the fourth quarter.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 11:54 am

Oil down to $46 after nearly four-year low

LONDON (Reuters) - Oil pared some losses on Thursday after an early fall below $46 a barrel to its lowest in nearly four years, in response to the bleak outlook for the world economy and oil demand.
Source: Reuters: Business News | 4 Dec 2008 | 11:49 am

Nokia again cuts fourth-quarter mobile industry outlook

Nokia Corp., the world’s largest maker of mobile phones, on Thursday lowered its fourth-quarter mobile-industry outlook for the second time in less than a month, citing worsening economic conditions, and warned it may lose market share in the period.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 11:49 am

Citigroup top execs ready to forego bonuses: report

(Reuters) - Citigroup Inc's top executives and Robert Rubin, a director and senior counselor at the firm, are ready to forgo their bonuses this year as the bank reels from the effects of the financial crisis, the Financial Times reported.
Source: Reuters: Business News | 4 Dec 2008 | 11:46 am

House prices still falling fast

House prices are falling at a faster rate, the Halifax says, as prices fell 2.6% between October and November.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 11:45 am

Currencies: Euro and British pound slip ahead of rate decisions

The euro and the British pound slipped for a second day Thursday as markets braced for potentially big rate cuts by the European Central Bank and the Bank of England.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 11:42 am

Nokia (NOK) Revises Sales Forecasts Down, Again

Nokia (NOK) can't keep up with the falling demand for cellular handsets. It cuts its forecasts for Q4 and 2009 again. That is probably not good new for Motorola (MOT), Samsung, RIM (RIMM), or even Apple (AAPL) iPhone sales.

According to Bloomberg, "Industry sales for this quarter will be lower than the 330 million units it had predicted last month, the Espoo, Finland- based company."

"The company also said it could no longer confirm its earlier prediction of having 38 percent global market share or higher in the quarter."

"In 2009, industry sales will fall by 5 percent or more, marking the first decline since 2001."

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 11:38 am

Corporate Default Rates Expected To Soar

The damage of the recession is beginning to move from the financial sector to other parts of the economy.

According to the FT, "The Markit iTraxx Crossover index rose above 1,000 basis points for the first time since it was created in 2004, implying a record number of companies are on the verge of default because of deepening financial problems."

"The index, which measures the cost of protecting junk-grade companies against default, has risen sharply in the past month as sentiment has worsened because of gloomy numbers on the global economy and worries over whether companies will be able to refinance their debt."

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 11:30 am

Argentina backs airline seizure

Argentina's lower house of Congress approve a bill to seize back the country's biggest airline from its Spanish owners.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 11:29 am

IBM (IBM) Takes Another Bite Out Of Microsoft (MSFT) Windows

IBM (IBM) has decided to be the next company to pile onto Microsoft (MSFT), which has already been beaten like a red-headed step child for bringing out Vista, a flawed bit of software which is perhaps the most unpopular program in the world.

Apple (AAPL) has already gone after Vista with is nice new operating system which ships with its increasingly popular Mac. That has begun to take market share from Windows.

Now, IBM is introducing a desktop software system based on the open source Linux operating system and its own IBM-created software. Like a lot of new applications, the product will run on a server leaving the PC free from any need for a lot of memory or storage space. That means the new offering will go for as little as $59, which should be attractive to corporate IT people in a bad economy.

Windows is getting to the point where the problems with Vista are bad, but not bad enough to cause any serious harm. It still runs on over 90% of the world's PCs.

But Microsoft's problem is that it is falling into a pool of piranhas where a lot of little fish with sharp teeth could eat it alive.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 11:25 am

Many dipping into retirement savings

As the economic crisis continues to hammer Americans, many are turning to desperate measures by dipping into their retirement funds to make ends meet, according to a survey released Thursday.
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 11:16 am

Pound slumps after grim British economic news

The pound slumped Thursday to a historic low against the euro and to its lowest level against the dollar in over six and a half years after further grim economic news fueled expectations...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:11 am

The Bonus Pool: Citigroup's (C) Pandit Comes To His Senses

Despite what executives at Goldman Sachs (GS) and several other large financial firms have done by agreeing to take no bonuses, there has been no such word out of Citigroup (C).

It looked like Citi CEO Vikram Pandit was going to engineer another PR disaster and bring shareholders and government regulators breathing down his neck.

Citi may have wised up, not because of Pandit, but due to a decision by disgraced board member Robert Rubin, infamous former Goldman CEO and ex-Treasury Secretary. Rubin has said in public that he had little to do with Citi's problems, a "dog ate my homework" apologia that no on believes.

According to the FT, "People close to the situation said last week’s government rescue made it almost impossible for Citi’s board to award cash bonuses to other senior executives, led by chief executive Vikram Pandit."

What is astonishing is that there was any chance that Pandit and his crew would get a cent for their job performance during 2008. That says more about the weakness of Citi's board than almost anything. It should have made the "no bonus" decision and announcement weeks ago.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 11:09 am

Putin hosts live Q&A broadcast

Prime Minister Vladimir Putin on Thursday assured Russians that their wages and pensions would not plunge as a result of the global financial crisis, which he once again blamed on the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:08 am

Goldman Sachs rejects Panasonic's latest Sanyo offer

Goldman Sachs on Thursday rejected a sweetened offer from Panasonic Corp. for its 29 percent stake in Sanyo Electric Co., leaving a planned merger to create Japan's biggest electronics...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:06 am

Shake up coming to Energy Dept.

President-elect Barack Obama's pick for energy secretary will likely lead the department through a new era with a sharp focus on renewable energy, but who'll lead a revamped agency is far from clear.
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 11:03 am

Dragons’ Den judge exits Woolworths bid race

Theo Paphitis, the Dragons’ Den entrepreneur, has pulled out of the race to buy parts of the fallen retail chain Woolworths.
Source: Latest Business News from Times Online | 4 Dec 2008 | 11:02 am

Mothers Work Reports Sales for November 2008

PHILADELPHIA, Dec. 4 /PRNewswire-FirstCall/ -- Mothers Work, Inc. (Nasdaq: MWRK), the world's leading maternity apparel retailer, today announced that net sales for the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:00 am

The PMI Group, Inc. Reduces 2008 Paid Claims Guidance

WALNUT CREEK, Calif., Dec. 4 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (NYSE: PMI) (the "Company") today reduced its paid claims guidance for 2008: --
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:00 am

Jackson Hewitt Reports Fiscal 2009 Second Quarter Results

Adjusted Net Loss of $0.72 Per Basic and Diluted Share Board of Directors Declares 2009 Third Quarter Dividend of $0.18 Per Share Analysts' Day Meeting to be Conducted in New...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:00 am

Santa's Secrets to a Successful Business Revealed by Business Owner's Toolkit, Known Helper to Small Business Owners

Santa's Storybook Outlines 7 Steps to a Successful Business, Helping Others Bring Business Dreams to Life RIVERWOODS, Ill., Dec. 4 /PRNewswire/ --
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 11:00 am

Costco (COST), One Of Retail's Last Hopes, Falters

The retailers who were supposed to do OK during the recession were the ones with the really, really good goods which were being sold at the really, really low prices.

Wal-Mart (WMT) falls into that bucket. So did Costco (COST), until today. Costco's same-store sales had looked fairly good over the last few months.

That ended.

Costco reported net sales of $5.55 billion for the month of November, a decrease of 3% from $5.72 billion in the same four-week period last year. Same-store sales in the US were actually not too bad, down 3%. But, overseas the number fell 15%, bringing the company-wide total to a 5% drop.

The announcement is a fairly good indication that even retailers with an unusually good blend of price and quality are seeing sales undermined by weak consumer spending.

Costco and Wal-Mart were the last best hopes for retail. Now, there is only one.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 10:59 am

Nomura to layoff up to 1,000 employees in London

Nomura Holdings Inc. will layoff up to 1,000 employees in London, less than three months after it bought big chunks of the global business of failed U.S. investment bank Lehman Brothers...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 10:52 am

The Bankruptcy Option Catches GM (GM) And Chrysler In It Web

The last word from Washington is that Congressional staff and some car company executives understand that pre-packaged bankruptcies of GM (GM) and Chrysler may be the only effective ways of saving the companies.

The news shows that there is a growing admission that putting $20 billion or $30 billion into car firm rescues won't cut it.

According to Bloomberg, "General Motors Corp. and Chrysler LLC executives are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multibillion-dollar government bailout."

No one should be shocked. The two companies say they need money in the next three weeks to stay in business. Getting any closer to a Chapter 11 filing or a Chapter 7 liquidation would be impossible.

The disadvantage of a pre-packaged bankruptcy is that it takes time. Someone has to talk to all of the debt-holders, the suppliers, and the UAW. Suppliers may say they cannot take less money for their goods without falling into liquidations of their own. The UAW may draw a line in the sand. A labor walk-out could screw the entire process.

The only real alternative is the coward's way out. That means giving The Big Three most or all of the money that they want and assume that they will not have the leverage with the people they owe money and the people they have promised jobs. That should be abundantly clear in a month or two. It would give the federal government some time to walk GM and Chrysler through their reorganizations by wiping out common shareholders and many individual investors and organizations which hold bonds or debt. It buys time to beat sense into labor and suppliers.

Part of the issue with getting the auto industry right is that the car company executives lied to themselves for too long. Those lies left their headquarters buildings and made it to shareholders, workers, and parts companies. The basis of the lies were simple. The Big Three had cut enough expense and had enough access to capital to survive a downturn. The only honest-to-God change of heart about those views is when the auto company CEOs got ready to travel to Washington to beg and plead for capital.

Living the lie will cost everyone something whether its is jobs, stock holdings, or lost receivables.

If wishes were horses, all the beggars would ride.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 10:47 am

Layoffs mount as crisis drags on

SINGAPORE (Reuters) - Credit Suisse and Nomura Holdings announced big job cuts on Thursday, further evidence the global financial crisis is unrelenting for an industry battered by heavy losses and weak markets.
Source: Reuters: Business News | 4 Dec 2008 | 10:43 am

Layoffs mount as crisis drags on (Reuters)

Reuters - Credit Suisse and Nomura Holdings announced big job cuts on Thursday, further evidence the global financial crisis is unrelenting for an industry battered by heavy losses and weak markets.

Source: Yahoo! News: Business | 4 Dec 2008 | 10:42 am

World markets mixed ahead of Europe rate decisions

World markets were mixed Thursday as investors anticipated interest rate cuts in Europe and braced for more bad news from Friday's U.S. jobs report. Japan's Nikkei 225 average fell 79.86
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 10:39 am

Danish airline buys parts of bankrupt Sterling

Danish domestic airline Cimber Air said Thursday it has taken over key parts of bankrupt budget airline Sterling Airways A/S for an undisclosed amount. The airline said it bought the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Dec 2008 | 10:38 am

GM, Chrysler considering bankruptcy to get bailout: report

(Reuters) - General Motors Corp and Chrysler LLC are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi-billion dollar government bailout, Bloomberg reported, citing a person familiar with internal discussions.
Source: Reuters: Business News | 4 Dec 2008 | 10:35 am

GM, Chrysler considering bankruptcy to get bailout: report (Reuters)

Reuters - General Motors Corp and Chrysler LLC are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi-billion dollar government bailout, Bloomberg reported, citing a person familiar with internal discussions.

Source: Yahoo! News: Business | 4 Dec 2008 | 10:35 am

Asia Markets: Tokyo falls, Shanghai up; merger lifts Nippon oil

Asian stocks erased gains and traded mostly lower Thursday as investors assessed whether the latest round of interest rate cuts will boost business. Shares of China Life led Chinese financial stocks higher after Beijing indicated it would increase liquidity in the banking system.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 10:33 am

The Recesssion Metastasizes To The Bone

There are a lot of pieces of data about what is happening to the economy, perhaps too many to make any sense of them.

In the last day or so, two stand out. One is tha Treasury Secretary Henry Paulson may elect to drive down interest rates for new home buyers, perhaps as low as 4.5%, using Fannie Mae (FNM) and Freddie Mac (FRE) as his instruments. Any observer would look at the news and say that Treasury can finally see that saving banks will not solve the problems of the economy. Working from the top down has been a failure.

The other more frightening bit of information is that Goldman Sachs (GS) believes that the nation lost 400,000 jobs last month. Most economists have that number close to 300,000. Goldman is saying unemployment is moving toward 7%. There is no data from the business or financial sectors to indicate that any jobs are being created. A look at the headlines reads a bleeding out of more jobs, sometimes tens of thousands a day. That leaves out all of the small companies cutting back. Those never make the evening news, but, in total, the destruction of entrepreneurial ventures may be going on at record rates.

Manufacturing, retail sales, and consumer spending are falling so fast that the effect is geometric now. This means that intervention is going from being a solution with fair prospects to one which is approaching futility. The government could be criticized for putting money into the economy too slowly, but it may be that the timing would not have mattered. The circle of jobs destroying housing destroying consumer spending destroying jobs may be too powerful.

A lot of analysts say that this recession will be worse than any other since WWII. It should not be lost on people that the federal government did not sit on the sidelines in 1974 and 1981. It could not do enough to keep GDP from shrinking and joblessness from rising to 10% or so. Another way to look at it is that some downturns are so vicious that they cannot be prevented by huge infusions of capital and better regulation.

The new administration will continue to try to "save" the economy, the housing market, and jobs. At the core of getting elected to national office is the promise that the world will get better. It is like telling a child that it is OK that is father is out of a job.

The solution to the problem is simple and it may be a long way off. At some point everything will be so cheap that businesses and consumers will start buying even if they have little access to money. Homes will become ludicrous bargains. So will cars and airplane trips to Florida. Businesses will be able to buy goods and services for unprecedented prices which have not been seen for decades. Businesses will hire because they can get employees for a fraction of what they paid them in 2006 and 2007.

It is impossible to predict if despair will turn into mayhem, a confusion of the system where businesses begin to fail are astonishing rates and people cannot find work of any kind.

But, it will have to get close to that before the economy finds a bottom

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 10:26 am

Credit Suisse axes 5,300 jobs

Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 10:25 am

Job recovery could be slow and weak

In the midst of a recession, huge job losses are expected to continue for at least several more months. But what really worries economists is that the job market could be slow to recover even when the economy begins to improve.
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 10:20 am

UK house prices fall at fastest rate in 16 years (AP)

AP - House prices in Britain fell at their fastest rate in 16 years during November, the country's biggest mortgage lender said Thursday, reinforcing market expectations that the Bank of England will later cut interest rates by at least another percentage point.
Source: Yahoo! News: Business | 4 Dec 2008 | 10:13 am

Philips says it won't meet 2010 earnings goal

Consumer electronics and medical equipment giant Philips Electronics NV on Thursday warned it wouldn’t meet its target of doubling earnings by 2010 as the economic downturn hurts demand for its products.

Source: MarketWatch.com - Top Stories | 4 Dec 2008 | 10:08 am

Wall Street set to open flat

(Reuters) - Stock futures pointed to a broadly unchanged start on Wall Street on Thursday, breaking a two-day rally. Futures for the S&P 500, the Dow Jones industrial average and Nasdaq were virtually flat at 4:49 a.m. EST.
Source: Reuters: Business News | 4 Dec 2008 | 10:00 am

Wall Street set to open flat (Reuters)

Reuters - Stock futures pointed to a broadly unchanged start on Wall Street on Thursday, breaking a two-day rally. Futures for the S&P 500, the Dow Jones industrial average and Nasdaq were virtually flat at 4:49 a.m. EST.

Source: Yahoo! News: Business | 4 Dec 2008 | 10:00 am

House prices fall at fastest rate in 25 years

British house prices tumbled at a record 16.1 per cent in November, marking the sharpest drop in property values for a quarter of a century.
Source: Latest Business News from Times Online | 4 Dec 2008 | 9:46 am

World markets await European rate calls

Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 9:40 am

Who can save Detroit?

Can anyone rescue the U.S. automakers?
Source: Business and financial news - CNNMoney.com | 4 Dec 2008 | 9:16 am

Media Digest 12/4/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, falling interest rates will not offset unemployment and falling prices to save to housing market.

Reuters reports that GM (GM) and Chrysler are considering bankruptcy to get US funding.

Reuters reports that a collapse of Detroit could hurt Asian rivals by closing dealers and parts companies.

Reuters reports that oil fell below $46, its lowest level in four years.

Reuters reports that Credit Suisse will cut 5,300 jobs after saying it had lost another $2.5 billion.

Reuters reports that Costco's (COST) November sales fell 3%.

Reuters reports that the Treasury is working on a plan to lower home loan interest rates.

Reuters writes that Citigroup (C) executives are ready to give up their bonuses.

Reuters reports that Philips says it won't meet targets due to the economy.

Reuters reports that Goldman Sacha (GS) expected the economy to lost 400,000 jobs in November.

Reuters reports that Goldman Sachs has turned down a Panasonic offer for Sanyo.

The Wall Street Journal writes that discounters like Costco and eBay (EBAY) are seeking regulations which would not allow manufacturers to set minimum prices.

The Wall Street Journal reports that Thomas H. Lee is considering closing two hedge funds.

The Wall Street Journal reports that the UAW gave job bank and pension funding relief to The Big Three.

The Wall Street Journal reports that Obama is not getting involved in how the Treasury uses the TARP.

The Wall Street Journal reports that Microsoft (MSFT) will offer a "Window-free" desktop.

The Wall Street Journal writes that Capital One will buy Chevy Chase bank.

The Wall Street Journal reports that Yahoo! (YHOO) is using the CBS (CBS) internet radio network.

The Wall Street Journal reports that JPMorgan (JPM) seized tens of millions of dollars of collateral from a commercial-property debt fund run by Guggenheim Partners.

The Wall Street Journal writes that Neuberger Berman was bought by its own top management.

The Wall Street Journal writes that the collapse in commodities is continuing.

The Wall Street Journal writes that retailers took a big hit on November sales.

The Wall Street Journal reports that online shoppers were luring by big bargains on Cyber-Monday.

The Wall Street Journal reports that the SEC has tightened rules to cut conflicts of interest at rating firms.

The New York Times reports that GM (GM) failed to makeover Saturn.

The New York Times reports that people are rushing to refinance as interest rates fall.

The New York Times reports that the recession is starting to hit India.

The New York Times reports that the Monday sales increase in retail sales is not likely to save the industry.

The New York Times reports that German car makers are trying to avoid layoffs.

The FT says Europe is preparing large rate cuts.

The FT writes that the Goldman Sachs (GS) wealth management operation is being hit by the recession.

The FT reports that a record number of companies are at risk for default.

Bloomberg reports that Bush and Pelosi are at odds over how to fund the auto bailout.

Douglas A. McIntyre

Source: 24/7 Wall St. | 4 Dec 2008 | 8:54 am

Markets braced for big European rate cuts

Financial markets are braced for large interest rate cuts across Europe as poor figures from leading economies led influential figures to call on central banks to be bold
Source: Financial Times - US homepage | 4 Dec 2008 | 8:49 am

Wary consumers

Economic hardship greets The Box as it arrives in LA
Source: BBC News | Business | World Edition | 4 Dec 2008 | 8:30 am

Credit Suisse to cut 5,300 staff jobs

The Swiss bank warned it had lost a net SFr3bn in the two months to the end of November and would axe about 11% of its workforce, principally in investment banking
Source: Financial Times - US homepage | 4 Dec 2008 | 8:23 am

Asia Markets And Europe Open 12/4/2008

Source: 24/7 Wall St. | 4 Dec 2008 | 8:20 am

Costco November sales fall 3 percent (Reuters)

Reuters - Costco Wholesale Corp on Thursday said its November sales fell 3 percent to $5.55 billion.

Source: Yahoo! News: Business | 4 Dec 2008 | 8:07 am

Costco November sales fall 3 percent

(Reuters) - Costco Wholesale Corp on Thursday said its November sales fell 3 percent to $5.55 billion.
Source: Reuters: Business News | 4 Dec 2008 | 8:07 am

Economic reports point to deepening recession

The latest evidence of a deepening recession that's already the longest in a quarter-century came Wednesday in a pair of reports that found little relief in sight.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Mattel given control of Bratz dolls

Court deals a potentially fatal blow to MGA, which had lost the copyright case over Barbie's top rival.

A federal judge delivered a potentially fatal blow to the popular Bratz dolls and their manufacturer, MGA Entertainment Inc., ruling late Wednesday that archrival Mattel Inc. is the legal owner of the edgy toy line and has the right to recall all unsold Bratz.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

UAW gives ground to aid Big 3 s chance for bailout

Steps include letting carmakers delay payments to a retiree trust

First it was the heads of Detroit's Big Three automakers who offered public pledges to cut costs, shrink their vehicle lines, go green and slash their own salaries in the quest for a desperately needed government bailout.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

UAW gives ground to aid Big 3 s chance for bailout

Steps include letting carmakers delay payments to a retiree trust First it was the heads of Detroit's Big Three...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

GM may pull plug on Saturn

The brand was created to compete with efficient imports but has never shown a profit, making it vulnerable as automakers struggle.

General Motors Corp. launched its Saturn division in 1985 as a "different kind of car company," one given the task to sell cars in a new way and compete with Japanese juggernauts like Honda and Toyota.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Commodities investors find comfort in cocoa, coffee

Prices have plunged drastically for other raw materials, but some necessities are bucking the trend. In the U...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Commodities investors find comfort in cocoa, coffee

Prices have plunged drastically for other raw materials, but some necessities are bucking the trend.

In the U.S., the true comfort foods are chocolate and coffee -- which may provide relief for investors battered by plummeting prices for oil, gold, wheat and other products.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Luxury brands go over the top to connect with wealthy clients

Lavish parties and extravagant events are in vogue as the economic slowdown causes marketers to focus on their high-net-worth customers.

The days of big spending are over for many Americans, but not for the high rollers. They just need a little encouragement to trigger that buying feeling.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Farmer Bros. to swallow up coffee rival for $45 million

The Torrance institutional coffee roaster has agreed to take over the Superior Coffee unit of Sara Lee, almost doubling its business.

In an effort to jump-start its long-struggling commercial coffee operations, Farmer Bros. Co. has agreed to acquire the Superior Coffee brand and sales network, almost doubling the size of its business.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Financial industry pushes for lower mortgage rates

Under the proposal, the Treasury Department would purchase mortgage-backed securities from Fannie Mae and Freddie Mae to lower the rate on a 30-year loan to 4.5%.

Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates in hopes of stabilizing the housing market.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Retailers rejoice: Cyber Monday sales figures rise

Online shoppers spend 15% more than a year ago, but merchants may have had to slash their profit margins to get them to buy.

Wooed by heavy discounts from online retailers, consumers who had been exercising restraint during this holiday shopping season finally let themselves go on Cyber Monday.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Trampled man's family accuses Wal-Mart of inciting 'crowd craze'

A wrongful-death lawsuit alleges that the store's advertising techniques created an 'environment of frenzy and mayhem.' ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Economy keeps divorced couples sharing close quarters

The housing crash and frail economy oblige some divorced couples to lead separate lives under one roof.

Running into your ex is almost always awkward and stressful. David Snyder and Nancy Partridge deal with it nearly every day.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Economy keeps divorced couples sharing close quarters

The housing crash and frail economy oblige some divorced couples to lead separate lives under one roof. Running...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Vivendi plans to keep its 20% stake in NBC Universal

The French media conglomerate's decision not to exercise an option to sell its minority interest averts a potential headache for General Electric, which owns 80% of the TV and movie business.

French media conglomerate Vivendi plans to keep its 20% stake in NBC Universal -- at least for another year.

Source: L.A. Times - Business | 4 Dec 2008 | 8:00 am

Yahoo connecting Internet radio service to CBS webcasting network

The move, coming in February, is driven by dramatically higher royalty fees for airing music online. Yahoo Inc...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Financial industry pushes for lower mortgage rates

Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates in hopes of stabilizing the housing market.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Auto workers offer sacrifices to win government bailout

First it was the heads of Detroit's Big Three automakers who offered public pledges to cut costs, shrink their vehicle lines, go green and slash their own salaries in the quest for a desperately needed...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

SEC adopts rules to tighten up on credit-rating firms

The regulations, which seek to prevent conflicts of interest and provide more transparency, come amid criticism of the industry for failing to identify risks in subprime mortgage investments. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

Signs mount of deepening recession

The latest evidence of a deepening recession that's already the longest in a quarter-century came Wednesday in a pair of reports that found little relief in sight.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Dec 2008 | 8:00 am

New shoppers push Morrisons sales

Supermarket chain Morrisons sees its quarterly sales rise - beating forecasts - despite "challenging" economic conditions.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 7:54 am

Rice urges a tough line on terrorism

Condoleezza Rice, US secretary of state, made an unannounced trip to Pakistan to urge the Pakistani government to take a 'tough line' on terrorism in the wake of last week's militant attacks on the Indian city of Mumbai
Source: Financial Times - US homepage | 4 Dec 2008 | 7:51 am

Nomura shedding 1,000 London jobs

Japanese bank Nomura has announced it will cut 1,000 staff in London after buying parts of Lehman Brothers.
Source: BBC News | Business | World Edition | 4 Dec 2008 | 7:46 am

Tesco defections send Morrisons sales soaring

Wm Morrison, Britain’s fourth largest supermarkets group, today unveiled an 8.1 per cent surge in sales, smashing City forecasts and outstripping its biggest rival, Tesco.
Source: Latest Business News from Times Online | 4 Dec 2008 | 7:44 am

Lower mortgage rates all-round after OCR slashed

Banks moved within hours to slash home loan rates in the wake of the Reserve Bank cutting its official cash rate by a record 1.5 percentage points to 5 per cent. State-owned Kiwibank said it was offering a one-year fixed rate of...
Source: New Zealand Herald - Business | 4 Dec 2008 | 7:22 am

Australian stocks: Market loses early gain

SYDNEY - The Australian share market lost its earlier strong gains to close little changed after the miners dragged the bourse down on fears of more commodity price falls. The insurers and banks gained. The benchmark S&P/ASX200...
Source: New Zealand Herald - Business | 4 Dec 2008 | 7:07 am

Economics editor Brian Fallow: No grinch from Bollard today

There was nothing of the Grinch about governor Alan Bollard today. He delivered the deepest cut ever in the official cash rate - 150 basis points or six times normal - foreshadowed further cuts to come, and publicly leaned on the...
Source: New Zealand Herald - Business | 4 Dec 2008 | 7:00 am

Stocks: Market rises on thin volume

The New Zealand sharemarket rose on light volume on a day in which it digested a late rally on Wall Street and a record cut in interest rates at home. But it was a quiet day. The currency market was barely moved after the Reserve...
Source: New Zealand Herald - Business | 4 Dec 2008 | 6:21 am

Currency: Dollar little changed on rate cut

The New Zealand dollar was oddly little moved by news of the Reserve Bank's unprecedented 1.5 percentage point cut in the official cash rate to 5 per cent. Dealers said it was a case of no surprise and therefore no reaction. Wall...
Source: New Zealand Herald - Business | 4 Dec 2008 | 5:30 am

The Solvent: Housing's Best Hope

If the U.S. Treasury manages to follow through on its plan to push mortgage rates down—as much as a full percentage point—on new home purchases, it would represent a bold move for Hank Paulson’s D.C. bailout boys: They’d actually be helping the solvent.
 
The Wall Street Journal reported Wednesday afternoon that “the plan, which is in the development stages, would use mortgage giants Fannie Mae and Freddie Mac to bring loan rates down as low as 4.5 percent, a full percentage point lower than the prevailing rates for 30-year fixed mortgages.” The Treasury would buy securities underpinning loans guaranteed by the two mortgage giants as well as those guaranteed by the Federal Housing Administration.
 
While America has grown accustomed to seeing deadbeats from Wall Street and the hybrid-driving hobos of Detroit standing in Capitol Hill’s breadline, it’s refreshing that the Treasury’s housing plan targets people who have been prudent and have enough cash for a real down payment with ostensibly enough left over to actually pay their mortgages. As long as the mortgage and banking industries don’t backslide into their free-lending ways, giving buying power to average Americans—as long as they’re not flipping Florida condos—can’t be too bad of a move.
 
There is some risk, obviously, that Americans so deeply fear losing their jobs, their credit cards, and their 401k balances that lower rates won’t spur any real estate bargain-hunting .
 
Still, as a fine editorial in Wednesday’s Journal pointed out, there’s just as much risk in the F.D.I.C.’s proposal to modify existing mortgages and give homeowners a second chance to default. That may cost the Feds $24 billion to start. Not a great proposition.
 
Stabilizing the housing market holds one of the keys to a real recovery in that it helps the flow of capital in the macro-economy while providing a psychological boost to Main Street. Much of the consumer spending boom of the late 1990s was rooted not only in cheap credit but in the confidence Americans had that their homes had value that wouldn’t quickly erode (even if the appreciation was astronomical for a few years).
 
The best way for Washington to rebuild that sentiment is by helping those who can actually help themselves.
 


Related Links
Corporate Lobbying and the Supbrime Crisis
Parsing Paulson: It's a Systemic Thing
Cue the Optimists


Source: Portfolio.com: Top 5 | 4 Dec 2008 | 5:00 am

All banks drop interest rates after OCR move

New Zealand's banks have been told to pass on the benefits of today's record 1.5 percentage point cut in official interest rates. Making his move this morning, Reserve Bank governor Alan Bollard made it clear the bank wants today's...
Source: New Zealand Herald - Business | 4 Dec 2008 | 3:30 am

Auckland property prices down in November - sales up slightly

As most of the big banks move to cut their mortgage rates, more signs of the tough property market has emerged. Auckland real estate company Barfoot & Thompson says house sales prices fell 3.7 per cent in November, though there...
Source: New Zealand Herald - Business | 4 Dec 2008 | 2:30 am

Powerful auto union agrees to help Big Three

DETROIT - Worried about their jobs and warned that the cost of bankruptcy could be a widespread depression, hundreds of leaders of the United Auto Workers voted overwhelmingly to make concessions to struggling US automakers, including...
Source: New Zealand Herald - Business | 4 Dec 2008 | 2:00 am

U.S. working on affordable mortgage plan: sources (Reuters)

Reuters - The Treasury Department is developing a plan to try to reduce mortgage rates on home loans to 4.5 percent on typical mortgages by expanding its purchases of mortgage backed securities, sources familiar with the plan said on Wednesday.

Source: Yahoo! News: Business | 4 Dec 2008 | 1:01 am

US rescue plan to push down home loan rates

The US Treasury is working on a new plan to help revive the ailing housing market by reducing mortgage rates on new home loans, according to people briefed on the situation
Source: Financial Times - US homepage | 4 Dec 2008 | 1:00 am

Business Briefs - Wednesday

Apple's iPod sales seen booming. Sales of the iPod music player could reach 21 mil units in Q1, up 90% from the previous three months, but down 5%...

Source: Investor's Business Daily: BUSINESS | 4 Dec 2008 | 12:52 am

After The Close - Wednesday

STATE STREET (STT), the financial services company, said it will cut 1,600-1,800 jobs, or 6% of its work force, by the end of Q1. It will take a...

Source: Investor's Business Daily: BUSINESS | 4 Dec 2008 | 12:52 am

Trends & Innovations - Wednesday

Study: Psychiatric woes common

Source: Investor's Business Daily: BUSINESS | 4 Dec 2008 | 12:52 am

Market Data Analyzer Struggles To Grow In Financial Meltdown

As financial services firms of all kinds have hit the wall over the last year, Chicago-based Morningstar has soared above the trouble.

Source: Investor's Business Daily: BUSINESS | 4 Dec 2008 | 12:52 am

In Brief - Wednesday

Wynn Resorts (WYNN) rose 6.5% to 40.02 despite Citi Investment Research initiating its coverage of the casino operator with a sell rating. Citi...

Source: Investor's Business Daily: BUSINESS | 4 Dec 2008 | 12:52 am

Amazon challenges iTunes with rival music download store

Apple’s iTunes music store faced a new challenger yesterday as Amazon introduced a rival online MP3 service with knockdown prices.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:05 am

New Star looks set for delisting as banks agree control

New Star Asset Management, the embattled fund manager founded by John Duffield, finally struck an agreement to resolve its crippling £240 million debt burden last night, with a deal under which he cedes control to bankers and leaves shareholders with virtually nothing.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:00 am

Vodafone faces $2 billion Indian tax bill$

A court in India has given the country’s taxman the green light to pursue Vodafone, the world’s largest mobile operator by revenue, for an estimated $2 billion ($£1.4 billion) in capital gains tax.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:00 am

Oil group Sibir buys property to bail out Russian investors

Investor confidence in Russia took another blow yesterday after Sibir Energy, once the biggest company on AIM, disclosed that it would buy property worth $340 million ($£229 million) to bail out its largest shareholders.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:00 am

Henry Paulson plans bailout for US mortgage borrowers

Henry Paulson, the US Treasury Secretary, is trying to use his last month in office to force through a bailout for struggling mortgage borrowers.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:00 am

Winter chill in advertising sends shiver through ITV

ITV was bracing itself for a long, cold winter on Wednesday, with a bleak prediction that advertising in January could fall by between 12 and 18 per cent on its flagship channel.
Source: Latest Business News from Times Online | 4 Dec 2008 | 12:00 am

Citigroup chiefs ready to waive bonuses

Citigroup's top executives, and Robert Rubin, a director and senior adviser, are ready to forgo their bonuses this year amid growing internal and external pressure to atone for the company's huge losses and a $300bn government bail-out
Source: Financial Times - US homepage | 3 Dec 2008 | 11:45 pm

Another Goldman unit hit by decline

Goldman Sachs' plans to expand its wealth management operations have been dealt a potential setback by a dramatic decline in the value of another of its funds
Source: Financial Times - US homepage | 3 Dec 2008 | 11:40 pm

SEC adopts new rules for credit-rating agencies (AP)

AP - Federal regulators on Wednesday adopted new rules designed to stem conflicts of interest and provide more transparency for Wall Street's credit-rating industry, widely faulted for its role in the subprime mortgage debacle and ensuing credit crisis.
Source: Yahoo! News: Business | 3 Dec 2008 | 11:19 pm

Discounts drive 15% sales jump on 'Cyber Monday'

US online retailers saw an annualised 15 per cent jump in sales on the Monday following the Thanksgiving weekend, according to early estimates, as aggressive bargains boosted traffic on the day the industry has dubbed 'Cyber Monday'
Source: Financial Times - US homepage | 3 Dec 2008 | 11:18 pm

VIX Index of U.S. Stock Option Prices Retreats 3.6% to 60.72

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 10:59 pm

Record number of companies at risk of default

A fresh sign in the deterioration of credit market conditions emerged yesterday when one of the most closely watched barometers of sentiment broke through an important threshold
Source: Financial Times - US homepage | 3 Dec 2008 | 10:58 pm

Chapin Hill's Boyle Sees Rise in ETFs Focused on Dow Jones

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 10:45 pm

NZ Shares: Small rise in local market after OCR cut

The New Zealand sharemarket was slightly higher in early trade, following the Reserve Bank's decision today to slash interest rates by a record 1.5 percentage points. The cut lowered the official cash rate to 5 per cent, with Reserve...
Source: New Zealand Herald - Business | 3 Dec 2008 | 10:34 pm

Alan Baum Says GM, Chrysler Merger Would Be `Colossal Mistake'

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 10:18 pm

Credit Suisse's Soss Sees 8% U.S. Unemployment in 2009

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 10:12 pm

Credit Suisse's Jersey Sees Possible $4 Trillion U.S. Debt

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 10:10 pm

Ugly economy trims beauty spending

Women probably aren't going to give up personal primping entirely. But they are taking a breather. And that has salons scrambling to adjust to beauty's new bottom line. Renita Jablonski reports.
Source: Marketplace | 3 Dec 2008 | 9:31 pm

Michelle Obama's style closely watched

There is big buzz about who's going to dress Michelle Obama for the inauguration. To help figure out what that might mean for clothing retailers, Kai Ryssdal talked with Kate Betts, editor-in-chief of Time's Style & Design.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

Where's the bailout for human capital?

Bailouts continue as money pours in to fix our troubled financial markets. Commentator Robert Reich says that's great for now, but we need to keep our eye on the long-term ball.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

U.K.'s prudent savers feel punished

Last month England's central bank dropped its interest rate to 3%, a 50-year low. Another half-point cut is expected Thursday to help hard-pressed borrowers. But that has hard-pressed savers upset. Stephen Beard reports.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

Doctors' drug-industry ties made public

The Cleveland Clinic has announced it's going to disclose its doctors' ties to the drug industry, upfront, on its website. Janet Babin reports.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

Comment: What today's interest rate cut might mean for Xmas retail

At Noel Leeming, we are quietly confident leading into Christmas that consumers will open their wallets and start spending. The 1.5 per cent interest rate cut from the Reserve Bank, which was widely tipped, will have a positive effect...
Source: New Zealand Herald - Business | 3 Dec 2008 | 9:30 pm

Economy's down, enlistments are up

The Pentagon is seeing some of its best recruiting figures in years as the economy heads south. Jeff Tyler reports.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

Goldman looks to online banking

A couple of months ago the Wall Street powerhouse decided the investment banking wasn't such a good idea anymore. So it turned itself into a full-service operation. Now it reportedly is considering becoming an Internet banking start-up. Bob Moon reports.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

Bucks don't stop at CEOs' $1 salaries

As Ford, General Motors and Chrysler go hat in hand to Congress asking for help, their CEOs now say they'll take just a dollar a year in salary if that'll make things better. But the bucks don't really stop there. Jeremy Hobson reports.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

UAW moves to help carmakers' cause

The United Auto Workers union has decided to make concessions to the Big Three carmaker in an effort to help them make their case to Congress for about $34 billion in loan guarantees and lines of credit. Nancy Marshall Genzer reports.
Source: Marketplace | 3 Dec 2008 | 9:30 pm

US auto union makes concessions

The main car workers' union said that it would suspend a contentious practice that allows so-called 'idled' car workers to collect virtually full pay and benefits without working
Source: Financial Times - US homepage | 3 Dec 2008 | 9:15 pm

Online retailers see surge on 'Cyber Monday' (AP)

AP - Like their counterparts at the malls, online merchants finally got some relief with the unofficial start of the holiday shopping season, spurred by a bevy of deals and free shipping offers. But the stronger-than-expected bump in online sales Monday couldn't cancel out a lackluster November.

Source: Yahoo! News: Business | 3 Dec 2008 | 8:50 pm

Arader, Art Dealer, Sees Rising Demand for Rare Maps

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 7:03 pm

Levitt Says Treasury's Paulson Has Done `Pretty Competent' Job

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 6:35 pm

Cato's Ikenson Says GM Should File for Bankruptcy

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 5:54 pm

Unicredit's Annunziata Says U.S. Recession to End in 2009

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 5:50 pm

Evergreen's Patel Sees Fed Interest-Rate Cut to 50 Basis Points

Source: Bloomberg - All Podcasts | 3 Dec 2008 | 5:48 pm

Wall Street, Meet Main Street

It's not giving away toasters, but it is still surprising to learn that Goldman Sachs is even considering an internet banking operation, as the Wall Street Journal reports.

Goldman, of course, became a bank holding company in September. And with funding uncertain amid the financial crisis, deposits would provide a stable source of funds. Its rival, Morgan Stanley, now also a bank holding company, said in October that it would work to build its bank deposits through the sale of certificates of deposit and other savings-account and currency-account products.

Still, the idea of an internet bank—so retail! so common!—wipes away even more of the luster of what it used to mean to be an elite investment bank.

Joe Weisenthal of ClusterStock says that after the Wall Street Journal report of a possible $2 billion quarterly loss at Goldman "now here's the second horse of the apocalypse." (The fine folks at ClusterStock appear to have gotten our Felix Salmon to be working and lucid at 8:20 in the morning; no small feat that.)

Foreign banks like ING and HSBC have used online banks to build a presence in the United States and to take deposits with a low overhead. Citigroup was criticized for buying the struggling British online bank Egg in January 2007, but Goldman could certainly build its own at a much lower cost.

Related Links
Wall Street Huddles for Safety
The Big Chill in Deal Making
All the Way to the Banks


Source: Portfolio.com: Top 5 | 3 Dec 2008 | 2:00 pm

The Nuclear Option

Crude oil prices have slumped to three-and-a-half-year lows, but the push for nuclear power is picking up momentum, nearly three decades after the accident at Three Mile Island.

The latest sign that nukes are attractive again is a possible takeover battle between one of the world's richest investors and one of the biggest utility companies. Électricité de France, the biggest operator of nuclear reactors, is offering $4.5 billion for half of Constellation Energy Group's nuclear business in an effort to torpedo a bid from Warren Buffett.

State-controlled E.D.F., which already owns 9.5 percent of Constellation, is presenting its offer as a joint venture with Constellation. Its plan values Constellation at a much higher price than Buffett's bid of $4.7 billion for the whole company that was made in September. E.D.F. has been busy extending it global presence, agreeing to buy British Energy Group in September for nearly $19 billion.

The move could trigger a bidding war for Baltimore-based Constellation, which owns three nuclear plants and half of nuclear-plant-development company UniStar Nuclear Energy.

In the United States, there has been no new application for a plant that was subsequently built since 1973, but the appetite for low carbon emissions and a political desire to reduce the United States' intake of imported energy is making nuclear energy look attractive. More than 20 companies are seeking permission from a number of states to build some 32 plants. Jeff VanDam noted in the February issue of Condé Nast Portfolio that utility companies are also taking advantage of a 2005 law that provides tax credits and risk insurance to companies that build nuclear plants. But building a nuclear plant is expensive: The reactor alone costs more than $2 billion. And the current credit crunch could make financing very difficult to obtain.

Energy is a big part of Buffett's portfolio. His MidAmerican Energy Holding Co. owns utilities and gas pipelines. But Constellation would have been his first big step into the nuclear sector.

Buffett typically does not enter into bidding wars. And after recent setbacks with his investments in Goldman Sachs and General Electric, he may be prepared to retreat on the nuclear font.


Related Links
A Google in the Sun
Google And GE In Energy Tie-Up
How Green Is My Investment


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