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AT&T, America's biggest phone firm, cuts 12,000 staffGet Times news on your mobile - text TIMES to 86626Source: Latest Business News from Times Online | 5 Dec 2008 | 7:58 pm China to raise gasoline tax by five-foldChina plans next month to raise tax on regular gasoline by five fold and diesel fuel tax by eight fold, in a move to take advantage of falling crude prices and encourage energy conservation, state-run media reported Friday.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 1:20 pm Oil At $25, Gas At A Buck?
A Merrill Lynch analyst says oil may be going to $25. Of course, for all the families that were spending hundreds of extra dollars for gas each month last summer, it is good news. Now they can afford both their car and their mortgage. According to The Guardian, "Oil prices could slump to just $25 a barrel next year, as much of the world sinks into recession and demand falls, according to the latest predictions from Merrill Lynch." Drops in demand in both the US and China will be big contributors to the plunge. But, be careful what you ask for. You might get it. Big money center banks won't be helped if sovereign governments start to cut back on debt service. And, deeper recessions in oil producing nations will not help demand for US goods and services exports Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 1:14 pm Honda quits Formula One (Reuters)
Source: Yahoo! News: Business | 5 Dec 2008 | 1:09 pm London Markets: London shares downbeat ahead of U.S. jobs dataMiners and oil producers fell in London on Friday ahead of some key jobs data that’s expected to add to growing gloom on the state of the U.S. economy.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 1:09 pm Honda quits F1 racing, cites global downturnHonda Motor Co., Japan's second-biggest car maker by volume after Toyota Motor Corp, announced Friday it will withdraw from Formula One racing with immediate effect, as the automaker scrambles to conserve cash and realign its engineering resources in the deteriorating global outlook.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 1:08 pm Stock futures drop before jobs data and auto hearings (Reuters)
Source: Yahoo! News: Business | 5 Dec 2008 | 1:06 pm Shelf life: Bratz may disappear after losing the battle of the dolls to BarbieBratz dolls face removal from shops after a US court bans parent company MGA Entertainment from making the Barbie-rival.Source: BBC News | Business | World Edition | 5 Dec 2008 | 1:00 pm Wall Street wary ahead of jobsWall Street appeared cautious early Friday, ahead of the release of what is expected to be a grim reading of the U.S. job market.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 12:55 pm Taxpayers: Furious over homeowner bailoutsAsk most Americans whether they're in favor of spending taxpayer dollars to help delinquent mortgage borrowers and you're likely to get an emphatic "No!"Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 12:49 pm "Number of headwinds" to hurt EPS of insurance brokers: JPM(Reuters) - A number of headwinds will dampen earnings per share prospects for U.S. insurance brokers unless an improvement in insurance pricing takes place, an analyst at J.P. Morgan Securities said.Source: Reuters: Business News | 5 Dec 2008 | 12:46 pm Amazon (AMZN): No Kindle Under The Tree This Year
Oprah helped get Mr.Obama elected President. At the very least she brought him some remarkable national attention. The famous talk show host and celebrity may have also give the new Amazon (AMZN) Kindle electronic book reader a huge boost. But, in this case, the results were counter-productive. Oprah had Amazon CEO and founder Jeff Bezos on her nationally syndicated show to talk about the Kindle. She even went to far as to say that it was one of the greatest devices she had ever seen. That started a run on Kindles and that means there won't be any on sales for the rest of the year. The trouble with Oprah's endorsement is that now there is an 11 to 13 week wait for the customer who want the device. That would put the product back on the shelves in late February, well after the holiday rush. It does not do Amazon's Q4 revenue any favors. Bezos made a classic business mistake, not unlike the one that Nintendo made last year when it ran low on Wii game machines just as shoppers were moving into malls looking for holiday goodies. Bezos introduced the Kindle by saying it would change the way that people read books. It would revolutionize the industry. It would reverse the decline in book sales. It would be the "next big thing" in consumer electronics, an iPod for the literate. Companies sometimes have problems believing their own press. They flog their latest product or service. Secretly, they worry if anything can be that great. It happened when Ford introduced the Mustang in 1964. It has happened a lot since. Bezos was trapped into committing the cardinal sin of free enterprise. He did not trust his own judgment. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 12:42 pm Top Pre-Market Analyst Upgrades (BKS, HNI, LEAP, LGF, SAFM, SQM, SYNA, VIP)These are the top pre-market analyst upgrades and positive calls we have seen so far this Friday morning:
Jon C. Ogg Source: 24/7 Wall St. | 5 Dec 2008 | 12:38 pm Top Pre-Market Analyst Downgrades (BRY, BBG, BG, CBST, GSX, KNL, WFR, SIRO, TXCO)These are the top pre-market downgrades from Wall Street analysts this Friday morning:
Jon C. Ogg Source: 24/7 Wall St. | 5 Dec 2008 | 12:32 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 12:31 pm Global crisis ends Honda F1 eraJapanese car giant Honda is quitting Formula One, blaming the world economic crisis.Source: BBC News | Business | World Edition | 5 Dec 2008 | 12:30 pm U.S. job losses awaitedLONDON/HONG KONG (Reuters) - China and the United States sparred on Friday over how to handle an economic crisis that has forced central banks around the globe into a series of dramatic interest rate cuts.Source: Reuters: Business News | 5 Dec 2008 | 12:26 pm U.S. job losses awaited (Reuters)
Source: Yahoo! News: Business | 5 Dec 2008 | 12:26 pm New Porche is mmm-mmm goodI hope you're hungry. Porsche's extremely, sublimely updated 2009 911 Targa 4S is quite a meal. It's haute meat-and-potatoes, a fusion of rare and raw (in the right places), comfort and spice, complexity and simplicity - a high-end palate pleaser that's mmm-mmm good.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 12:21 pm Wall Street on edge ahead of unemployment reportNEW YORK -- Wall Street was on edge Friday as investors waited to learn how many jobs were lost as employers slashed their payrolls in November. Stock index futures were trading moderately lower.Source: L.A. Times - Business | 5 Dec 2008 | 12:21 pm Big 3 plead for $34B from CongressThe CEOs of the leading automakers were back before Congress Thursday, arguing for a larger bailout than they asked for just two weeks ago, and hoping to undo the damage they did to their case at the earlier hearings.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 12:20 pm BMW car sales crash by 25% as economy worsensSales of BMW cars collapsed by more than 25 per cent in November, the luxury carmaker said today, as wealthy consumers around the globe responded to rapidly worsening economic news.Source: Latest Business News from Times Online | 5 Dec 2008 | 12:14 pm Crude steady near four-year lowOil prices recover slightly to trade just above $44 a barrel, but remain near almost four-year lows as weak demand continues.Source: BBC News | Business | World Edition | 5 Dec 2008 | 12:01 pm Investors prepare for crucial US jobs dataThe dollar held steady against a basket of competitors as traders braced themselves for the release of US employment data later in the day.Source: Financial Times - US homepage | 5 Dec 2008 | 12:00 pm Facebook delays plan on employee stock sale: report(Reuters) - Social networking company Facebook is delaying a previously announced plan to let employees sell part of their stocks, due to difficult global economy, the Wall Street Journal said.Source: Reuters: Business News | 5 Dec 2008 | 12:00 pm Julius Baer CEO dies unexpectedly (Reuters)
Source: Yahoo! News: Business | 5 Dec 2008 | 11:59 am Julius Baer CEO dies unexpectedlyZURICH (Reuters) - Alex Widmer, the chief executive of Bank Julius Baer and a well respected figure in Swiss private banking, has died unexpectedly at the age of 52, the bank said.Source: Reuters: Business News | 5 Dec 2008 | 11:59 am Troubled Woolworths launches saleRetailer Woolworths slashes prices before Christmas in what an analyst describes as a 'closing down sale'.Source: BBC News | Business | World Edition | 5 Dec 2008 | 11:57 am Currencies: Dollar mixed as markets brace for big Nov. job lossesThe dollar was mixed versus major currencies Friday ahead of a potentially brutal plunge in November U.S. nonfarm payrolls.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 11:42 am Oil steadies around $44 ahead of jobs dataLONDON (Reuters) - Oil steadied around $44 on Friday, not far off its lowest level in almost four years, as financial markets awaited U.S. jobs data for clues to the state of demand in the world's biggest oil consumer.Source: Reuters: Business News | 5 Dec 2008 | 11:40 am Morgan Stanley widens Goldman Sachs loss view(Reuters) - Morgan Stanley widened its fourth-quarter loss estimate on Goldman Sachs Group Inc , citing a fall in equity, credit and real-estate asset values in November, and rising negative marks on the firm's illiquid asset and principal investment portfolios.Source: Reuters: Business News | 5 Dec 2008 | 11:40 am Europe Markets: European shares decline, U.S. jobs data on tapEuropean shares fell on Friday, paced by oil producers and mineral extractors, as investors await more signs of a contracting economy with the release of key U.S. jobs data out later in the session.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 11:39 am The Long Knives Come Out As Apple (AAPL) Estimates Cut
"For the September 2009 fiscal year, Munster cuts his revenue estimate to $38.86 billion from $40.45 billion; EPS goes to $5.46 from $5.67. For FY 2010, his revenue outlook drops to $50.08 billion, from $51.76 billion; his profit estimate is now $7.73, down from $7.98. Munster knocked his legendary $250 price target down to $235." What does Munster blame? The recession. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 11:35 am Banks face pressure on rate cutMPs pressure banks to pass on 1% cut in interest rates to customers as HBOS offers only 0.25%.Source: BBC News | Business | World Edition | 5 Dec 2008 | 11:33 am SectorWatch.biz Issues MarketStats on Oil Related Companies CETG, SLB, HAL, PENC, FORC, and ATNIRVINE, Calif., Dec. 5 /PRNewswire/ -- SectorWatch.biz announces the availability of MarketStats for Oil related equities in the news and driving markets today....Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 11:30 am Madagascar Oil sees 1.7 bln barrels in TsimiroroANTANANARIVO, Dec 5 (Reuters) - Houston-based Madagascar Oil boosted its estimate of reserves at its Tsimiroro project on the Indian Ocean island by 30 percent on Friday to 1.7 billion barrels.Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 11:29 am California Moves To Confederate Dollars For Monetary Systemi
Now, the State of California is collecting that old paper and moving it into its treasury. It has run out of US dollars and hopes that its vendors won't notice. It looks like real money, so who will know? According to Bloomberg, California, the world’s eighth largest economy, may pay vendors with IOUs for only the second time since the Great Depression, State Finance Director Mike Genest said. It is a fine example of how a deep recession is the parent of its own awful offspring. When the nation's most populous state cannot pay people, it means that many of its suppliers will either lay-off workers or go out of business altogether. That puts a greater strain on social services and cuts the tax base. The news begs the question of the extent to which the federal government bailout could have to move to some major states and cities. First on that list has to be Michigan. If Congress does not save the car companies, a state which already has an 11% unemployment rates and massive deficit could face dealing with another 200,000 people out of work. That will spread to car companies' suppliers and the number will go up. One state becoming insolvent and reaching for government aid could cause others to follow. Bailout money works that way. When it helps the troubled, it becomes a magnet for the nearly troubled. Why fall into the abyss when you can be saved at the last moment? The borders of the bailout are about to move beyond private enterprise. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 11:25 am Bloomsbury snaps up Wisden Cricketers’ AlmanacBloomsbury, the publisher of the Harry Potter series, is to buy John Wisden, the 144-year-old publisher of the eponymous Wisden Cricketers’ Almanac.Source: Latest Business News from Times Online | 5 Dec 2008 | 11:24 am Ryanair may be closing in on Aer Lingus with sweetened termsThe near collapse of the Irish economy and a sweetened sales pitch may finally allow Ryanair Holdings, Europe’s largest low-cost airline, to bag rival Aer Lingus Group after a two-year wait.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 11:19 am An Irony In Low Oil Prices
Now the economy has modest relief as oil moves under $50 and gas down below $2 a gallon. There can be nothing but good in that. High oil prices coupled with a slowing economy made for a poison stew. The balance of oil prices may have gone so far from one side to the other that cheap fuel will hurt the economy nearly as much as high prices. Part of the problem is worldwide. Nations such as Iran, Russia, and Venezuela may not be numbered among the friends of the US. But, they could fall into very deep recessions if their income from crude continues to move down and stay down. The global recession has now means that failure of one economy sucks growth out of others. If these governments default on financial obligations, the credit system could be thrown further into chaos According to The Wall Street Journal, "Schlumberger Ltd., the world's largest oil-field-services firm by market capitalization, said its 2008 earnings will miss analysts' estimates as oil and gas production slows world-wide." Those are code words for cutting jobs. And, there are thousands of other US oil companies, oil equipment suppliers, and drilling outfits that are going to face the same problem. A boom then a bust. It appears to be an indicator that the economy cannot find equilibrium in any critical area. It is also a sign that the financial system could be hit by a worse crisis than the mortgage-related securities trouble since Venezuela has a lot of debt. The country's Congress recently approved $393 million for debt service. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 11:15 am BMW sales dip more than a quarterCarmaker BMW says global sales fell 26.2% in November, as consumers tighten their belts amid the economic slowdown.Source: BBC News | Business | World Edition | 5 Dec 2008 | 11:13 am Gazprom seeks state cash for power projectsRussia's state-run gas giant Gazprom said Friday it will ask the government for 100 billion rubles ($3.58 billion) to help fund capital-intensive power projects next year, the state-run...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 11:03 am Sanders Morris Harris Group Announces Quarterly DividendHOUSTON, Dec. 5 /PRNewswire-FirstCall/ -- Sanders Morris Harris Group Inc. (Nasdaq: SMHG) today announced that its Board of Directors declared a regular quarterly cash dividend...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 11:00 am Brown will force banks to pass on full rate cutGordon Brown issued a stark warning to banks today, demanding that lenders must pass on yesterday's full 1 per cent interest rate cut to their customers.Source: Latest Business News from Times Online | 5 Dec 2008 | 10:59 am A Good Time To Dump Boeing (BA) Management
Boeing management took to the ramparts and fought the machinists. It may have saved some money over the three-year contract it cut, but it now seems certain that the incident and problems with parts will delay the delivery of its 787 Dreamliner again. This may push the launch of the first plane out another six months. The project had been delayed three times. Now, that will move up to four. According to The Wall Street Journal, In a recent interview, Virgin Atlantic Airways Chief Executive Steve Ridgeway voiced customers' growing frustration. "We're pretty fed up," he said. "We've got no clarity from Boeing." The 787 trouble could well force some of Boeing's revenue into later quarters, undermining its financial results. It could certainly put customers in a position to ask for very large penalties for the late deliveries. Flying their older planes costs them more in fuel and the opportunity to more efficiently configure their fleets. Boeing's shares have dropped from a 52-week high of over $93 to $39. That means they have fallen by over 55% during a period that the DJIA is off 35%. Almost all of the plunge has been caused by poor labor relations and bad sourcing and controls of components. In other words, particularly poor management. Under most circumstances, trouble at these levels causes a board to make changes. At Boeing, now would be a good time. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 10:55 am Big Lots Reports Third Quarter ResultsCompany Updates 2008 Guidance COLUMBUS, Ohio, Dec. 5 /PRNewswire-FirstCall/ -- Big Lots, Inc. (NYSE: BIG) today reported third quarter fiscal 2008 income from...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 10:55 am CORRECTION - - UPDATE 1-BG and Kazakhstan to co-operate on explorationSource: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 10:53 am HK stocks climb 2.5 pct on China stimulus hopesHong Kong stocks climbed Friday on speculation China would launch another round of stimulus measures to back the economy and financial markets. The blue chip Hang Seng index shrugged offSource: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 10:45 am Asia Markets: Hang Seng gains; BHP Billiton, MUFG, Honda fallAsian stocks traded mixed to lower Friday, with commodity stocks retreating in the wake of overnight falls in crude-oil prices, while investors chased up Hong Kong-listed stocks such as China Mobile, which are leveraged to the China growth story.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 10:45 am UPDATE 1-Irvine Energy says may seek possible mergerDec 5 (Reuters) - Oil and gas company Irvine Energy Plc said on Friday it was conducting a strategic review, including a possible merger of the company, and was in advanced talks to sell its non-core...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 10:44 am BMW sales plunge, Honda quits Formula OneFRANKFURT/TOKYO (Reuters) - Global sales at BMW, the world's top premium carmaker, plunged by a quarter in November, and Honda backed out of Formula One racing on Friday as the economic downturn exacted a mounting toll on automakers.Source: Reuters: Business News | 5 Dec 2008 | 10:44 am Oil prices flirt with 42 dollarsOil prices fell to 42.01 dollars a barrel in trading here on Friday, the lowest level since January 2005, and were expected to slide further in the days ahead as energy demand wanes,...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 10:43 am Scooters may steal the showMotorcycle exhibition this weekend in Long Beach will pay special attention to riders who value economy over power.The 28th annual International Motorcycle Show, rolling into the Long Beach Convention Center today, caters to the crowd that wants its bikes bigger, better and faster. But, in a nod to changing times, there's a new feature this year: a scooter pavilion. Source: L.A. Times - Business | 5 Dec 2008 | 10:40 am Indications: U.S. stock futures hug lows ahead of jobs dataU.S. stock futures on Friday clung near the prior session’s lows ahead of data that may show the worst month for jobs in at least 30 years.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 10:38 am What 20,000 Jobs Lost A Day Means
The government will announced the November unemployment figures today. Best guess is that 350,000 more people will have been put out onto the streets during the month and that unemployment will go to 6.8%. That is only a modest part of the entire employment story. The government announces what it calls "non-farm" payroll numbers. It is important to remember that America still has farms and that falling commodities prices are putting some of those people out of work. There are also the hundreds of thousands of people who fall into the category of those no longer looking for work. That is another 3% or 4% of the workforce. When it comes to need for social services and a shrinking tax base it is impossible to say that they should not be "counted". At this point, especially if the number of unemployed based on the government's measure moves up by 400,000 for November, there is every reason to think the figure is accelerating. Economic contraction measured by factory output, retail sales, and the purchase of capital goods is still tightening. The announcement of job cuts at companies may be delayed until after Christmas to avoid the despair of going through a holiday just after being fired. Santa may have some practical role in the world after all. Looking at the situation with a jaundiced eye, by January the economy should be bleeding out 20,000 jobs a day, 600,000 a month. How long that lasts depends on whether any of the government economic programs works and whether labor gets so cheap that companies feel compelled to hire people because the costs of getting workers may not be so low again in a generation. To get to the unemployment level of 1982, a little over 10%, will require a sharp jump in the rate at which poor souls are put out into the cold. Most economists think the present troubles look worse than in the early Eighties. The November unemployment numbers may be the best America sees for some time Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 10:37 am Julius Baer CEO dies unexpectedlyZURICH (Reuters) - Alex Widmer, the chief executive of Bank Julius Baer and a well respected figure in Swiss private banking, has died unexpectedly at the age of 52, the bank said on...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Dec 2008 | 10:34 am Understanding but no consensus on auto bailoutWASHINGTON (Reuters) - There is broad understanding of distress but no consensus yet in Congress to rescue U.S. automakers as industry chiefs hope on Friday to advance their case in a second appearance before lawmakers in two days.Source: Reuters: Business News | 5 Dec 2008 | 10:33 am Job recovery could be slow and weakIn 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 | 5 Dec 2008 | 10:16 am Morgan Stanley widens Goldman Sachs loss view (Reuters)
Source: Yahoo! News: Business | 5 Dec 2008 | 10:10 am HSBC to buy back London headquarters for $1.2 billionHSBC said Friday it will buy back its London headquarters from Spanish property group Metrovacesa for around 250 million pounds ($367 million) less than the price it received for the building around 18 months ago.Source: MarketWatch.com - Top Stories | 5 Dec 2008 | 10:09 am US carmakers' plea under scrutinyBosses from America's big three car companies face a second day of grilling in Congress over their request for a $34bn bailout.Source: BBC News | Business | World Edition | 5 Dec 2008 | 10:08 am Jitters hit global stock marketsSource: Business and financial news - CNNMoney.com | 5 Dec 2008 | 10:04 am Wall Street headed for mixed start(Reuters) - * Stock futures pointed to a mixed start on Friday, as investors await key non-farm payrolls data. Futures for the S&P 500 and the Dow Jones industrial average were up 0.3 and 0.4 percent, respectively, and those for the Nasdaq were down 0.6 percent.Source: Reuters: Business News | 5 Dec 2008 | 9:47 am No Merrill honeymoon for Bank of AmericaBank of America CEO Ken Lewis has no shortage of distractions nowadays.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 9:12 am The car of the futureCarl Dietrich always dreamed of building a flying car. Instead, the pragmatic inventor ended up creating what he calls a roadable aircraft, a plane that folds up its wings on landing and takes to the highway. In 2010, after three years of development, his vehicle, the Transition, will be available to customers for $194,000 a pop.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 8:58 am Media Digest 12/5/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that governments are bracing for a long crisis ahead. Reuters reports that Paulson says the financial bailout still faces hurdles. Reuters writes that oil is steady below $44. Reuters reports that some members of the Senate are pushing for a GM (GM) merger with Chrysler. Reuters reports that the infrastructure building boom is Asia is not likely to pay off soon. Reuters reports that Toshiba will sharply cut chip output due to lack of demand. Reuters reports that Microsoft (MSFT) picked up a key Yahoo! (YHOO) executive to run its online business. Reuters writes that Facebook is delaying plans for an employee stock sale. Reuters reports that ex-CEO Greenberg says AIG (AIG) needs a unified plan. The Wall Street Journal writes that the Fed is considering taking unconventional steps to help the economy. The Wall Street Journal reports that companies are accelerating lay-offs. The Wall Street Journal reports that Boeing (BA) may delay delivery of the 787. The Wall Street Journal reports that Harvard plans a bond issue. The Wall Street Journal reports the November retail sales were as bad as feared. The Wall Street Journal reports that Credit Suisse revealed a big loss. The Wall Street Journal reports that the fall of oil is threatening energy-driven companies and several countries. The Wall Street Journal reports that AMD (AMD) sharply cut its forecasts. The Wall Street Journal writes that the car companies are taking their case to the web. The Wall Street Journal expects the November jobs report to be grim. The Wall Street Journal reports that the Merrill Lynch (MER) deal with Bank of America (BAC) goes to a vote today. The Wall Street Journal reports that China is looking to Wall St. to lure back native talent. The Wall Street Journal reports that layoffs at Viacom (VIA) says a lot about the performance of some of its businesses. The Wall Street Journal reports that Siemens (SI) expects slow growth in China. The Wall Street Journal reports that concerns about debt are weighing on Rio Tinto (RTP).. The Wall Street Journal reports that Toll Brothers (TOL) narrowed it loss but sales continued to fall. The Wall Street Journal reports that Starbucks (SBUX) is moving to keep sales and cut costs. The Wall Street Journal reports that Nokia (NOK) cuts its forecasts for handset sales, again. The New York Times reports that Washington's new trek is to help homeowners. The New York Times reports that AT&T (T) cut 12,000 jobs as its landline business continues to fall. The FT reports that The Big Three would accept government oversight in exchange for loans. The FT reports that Europe's central banks slashed rates. The FT reports that Bernanke called for action on foreclosures. The FT warned about a Latin American credit squeeze. Bloomberg reports that California may resort to recession-era IOUs are cash tightens. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Dec 2008 | 8:47 am Lower mortgage rates no silver bulletReducing mortgage rates to a historically low 4.5% may entice some home buyers out of the shadows, but it won't be enough to really spur housing sales, experts said.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 8:39 am Resolution raises £600m ahead of flotationResolution, Clive Cowdery's reinvented investment vehicle, revealed that it had succesfully raised £600 million from investors in one of the UK’s few major flotations this year.Source: Latest Business News from Times Online | 5 Dec 2008 | 8:28 am Ofcom allows BT to raise rivals' prices by 11%BT could charge other telecoms carriers up to 11 per cent more for using its network under long-awaited pricing proposals published this morning by Ofcom, the telecoms watchdog.Source: Latest Business News from Times Online | 5 Dec 2008 | 8:08 am Financial bailout still faces challenges: PaulsonBEIJING (Reuters) - The United States has made clear progress in steadying its financial system, thanks in part to a $700 billion bailout fund authorized by Congress, but the rehabilitation process still faces many challenges, Treasury Secretary Henry Paulson said on Friday.Source: Reuters: Business News | 5 Dec 2008 | 8:02 am Retail sales fall 2.7% in November -- and experts say it could have been worseThanks to a better-than-expected Black Friday, the 'results were terrible instead of being completely horrific,' said Ken Perkins, president of research company Retail Metrics Inc. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am Toy makers settle lawsuit over lead contentMattel and eight other companies agree to pay $1.8 million and to comply with new federal lead limits. Mattel...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am Viacom to cut 7% of workforce; MTV division takes biggest hitThe media company is slashing more than 850 jobs and is freezing salary increases next year for senior managers. About 140 positions are cut at Paramount Pictures.Responding to the economic downturn and weaker revenue at its businesses, Viacom Inc. is slashing more than 850 jobs, or about 7% of its workforce, and freezing salary increases next year for senior managers. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am Auto chiefs make return trip to CongressHumbled leaders of faltering Big Three accept tougher terms as they raise bailout price to $34 billion.Humbled and increasingly desperate as car sales plummet, the heads of the country's Big Three automakers told Congress on Thursday that they were willing to accept oversight of their spending in return for $34 billion in government loans to keep them afloat. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am Rate drops are of little help to many in CaliforniaThey've fallen to about 5.5%, but restrictions on Fannie and Freddie leave those with jumbo loans or who owe more than their homes' values to face much higher costs. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am MannKind says no adverse lung effects from insulin inhalerAn executive says the company expects to apply for FDA approval to sell the diabetes treatment device next year. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am Retail sales fall 2.7% in November -- and experts say it could have been worseThanks to a better-than-expected Black Friday, the 'results were terrible instead of being completely horrific,' said Ken Perkins, president of research company Retail Metrics Inc.The frenzy of a much-hyped Black Friday failed to rescue retailers from a months-long slump, as November sales figures released Thursday showed yet another steep drop-off in consumer spending. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am Auto chiefs make return trip to CongressHumbled leaders of faltering Big Three accept tougher terms as they raise bailout price to $34 billion. Humbled...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am Rate drops are of little help to many in CaliforniaThey've fallen to about 5.5%, but restrictions on Fannie and Freddie leave those with jumbo loans or who owe more than their homes' values to face much higher costs.Home loan rates are near their lows for the year, reflecting optimism over government efforts to help the housing markets, but analysts see little help for the worst-off borrowers and people with jumbo mortgages. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am Toy makers settle lawsuit over lead contentMattel and eight other companies agree to pay $1.8 million and to comply with new federal lead limits.Mattel Inc. and eight other toy makers Thursday agreed to pay $1.8 million and accelerate reductions in the levels of toxic lead in consumer products to settle an environmental lawsuit brought by the state and the city of Los Angeles. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am AT & T to cut 12,000 jobsLayoffs will take place this month and in 2009. But the telecom firm still plans to hire in its cellphone and broadband Internet businesses. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am Bratz rebuffed, but saga is far from overThe company that makes the popular doll may appeal, or seek compromise, in its legal battle with Mattel.Day One: Bratz held hostage. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am With the Nissan 370Z, heel-and-toeing goes the way of the fox trotThe latest Z car gives the few remaining practitioners of the downshifting maneuver nothing to dance to.The heel-and-toe downshift -- whereby drivers "blip" the gas pedal with the blade of their right foot, revving the engine, while keeping pressure on the brake pedal with the ball of the same foot -- is becoming a lost art, a performance-driving shibboleth known to few and practiced by fewer. Source: L.A. Times - Business | 5 Dec 2008 | 8:00 am With the Nissan 370Z, heel-and-toeing goes the way of the fox trotThe latest Z car gives the few remaining practitioners of the downshifting maneuver nothing to dance to. The heel-and-toe...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 8:00 am Australian stocks: Market closes lower on oil's big dropPERTH - The Australian stock market closed lower on Friday, dragged back by weakness in the resources sector after a big drop in the price for oil. At the 1615 AEDT close, the benchmark S&P/ASX200 index had fallen 42.5 points,...Source: New Zealand Herald - Business | 5 Dec 2008 | 7:31 am Boom not bustLebanon's banks claim immunity from financial crisisSource: BBC News | Business | World Edition | 5 Dec 2008 | 7:21 am Scooters may steal the showMotorcycle exhibition this weekend in Long Beach will pay special attention to riders who value economy over power. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 7:19 am Credit crunch forces Honda into shock pullout from Formula OnePummelled by the credit crisis, collapsing global auto markets and an army of angry shareholders, Honda has pulled out of Formula One in a move that deals a huge symbolic blow to the company’s image and could plunge the sport into crisis.Source: Latest Business News from Times Online | 5 Dec 2008 | 6:44 am China, US pledge $20bn trade aidThe two countries pledged $20bn (£13.6bn) to help finance global trade, as part of efforts to boost the faltering world economy.Source: BBC News | Business | World Edition | 5 Dec 2008 | 6:32 am NZ stocks: Market slips after drop in USThe New Zealand sharemarket slipped again on light volume mostly because United States equities ended lower. The benchmark NZSX-50 index closed down 23.961 points, or 0.877 per cent, at 2706.721. Just $64 million worth of shares...Source: New Zealand Herald - Business | 5 Dec 2008 | 6:26 am Bratz rebuffed, but saga is far from overThe company that makes the popular doll may appeal, or seek compromise, in its legal battle with Mattel. Day One:...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 5:53 am Currency: Dollar hangs around in a rangeThe New Zealand dollar finished a week in which central banks around the world slashed interest rates trading in a fairly familiar recent range. The New Zealand dollar was US53.37c at 5pm, little changed from the US53.27c level...Source: New Zealand Herald - Business | 5 Dec 2008 | 5:35 am UK Honda staff facing redundancyStaff at Honda have been warned they face redundancy, following news the Formula One team has been put up for sale.Source: BBC News | Business | World Edition | 5 Dec 2008 | 5:21 am Mexican Senate passes stricter credit rules (AP)AP - Mexico's Senate has approved stricter consumer credit rules, banning lending practices considered predatory.Source: Yahoo! News: Business | 5 Dec 2008 | 4:21 am Is U.S. facing a depression? National Bureau of Economic Research won't go thereNow that the "R" word is officially out of the closet, can the "D" word be far behind?Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Dec 2008 | 3:28 am Is U.S. facing a depression? National Bureau of Economic Research won't go thereNow that the "R" word is officially out of the closet, can the "D" word be far behind?Source: L.A. Times - Business | 5 Dec 2008 | 3:28 am Quiet solutions to credit crunchTreasury's $700 billion bailout has gotten most of the nation's attention, but some of the government's lesser-known programs are doing their part to help ease credit as well.Source: Business and financial news - CNNMoney.com | 5 Dec 2008 | 3:15 am Hanover meeting threatened by court injunction pleaConfused Hanover investors are filing a court application this afternoon to have next week's vote on the troubled finance company's future postponed. Investors are due to decide at a meeting on Tuesday whether to accept the company's...Source: New Zealand Herald - Business | 5 Dec 2008 | 2:00 am David Kirk resigns as Fairfax CEOSYDNEY - Former All Blacks captain David Kirk has resigned as Fairfax Media chief executive officer, as the company tries to halt a slide in its stock. Based in Australia, Fairfax owns The Dominion Post and The Press newspapers...Source: New Zealand Herald - Business | 5 Dec 2008 | 1:30 am Govt books $3.5bn in red on global crisisThe Government's books have plunged $3.5 billion into the red - $5 billion worse than forecast - on the back of the global financial meltdown, according to the crown accounts out today. The government's financial statements shows...Source: New Zealand Herald - Business | 5 Dec 2008 | 1:00 am BCE takeover doubt as buyers mull optionsThe proposed C$34.8bn ($27.3bn) buy-out of BCE, the Canadian telecommunications giant, appeared less likely as the private equity firms that agreed to the takeover debated instead whether to buy a minority stake in the companySource: Financial Times - US homepage | 5 Dec 2008 | 12:59 am In Brief - ThursdayStarbucks' (SBUX) CFO said the coffee giant's same-store sales fell 9% in Q1, and Q1 results won't meet views. It dipped 0.4% to 8.61.Source: Investor's Business Daily: BUSINESS | 5 Dec 2008 | 12:52 am After The Close - ThursdayDEVRY (DV),an education company, said its new undergraduate students enrollment rose 19.7% during fall. Total undergraduate enrollment rose 16.9%....Source: Investor's Business Daily: BUSINESS | 5 Dec 2008 | 12:52 am Business Briefs - ThursdayMerck sees lower profit, flat sales. The drug giant fell 5.5% to 25 after it projected '09 EPS of $3.15-$3.30 ex items, below views of $3.52, on...Source: Investor's Business Daily: BUSINESS | 5 Dec 2008 | 12:52 am Investors Fight Foreclosure On Their OwnInvestors struggling to make mortgage payments get little help staving off foreclosure, while strapped primary-home borrowers receive more --...Source: Investor's Business Daily: BUSINESS | 5 Dec 2008 | 12:52 am Manufacturer Weathers Housing Bust, While Ammo Sales SizzleThe mortgage meltdown has forced builders to cut back severely on new starts, hurting the industry's wide array of suppliers, including chemical...Source: Investor's Business Daily: BUSINESS | 5 Dec 2008 | 12:52 am Trends & Innovations - ThursdayUnchained bikes being rolled outSource: Investor's Business Daily: BUSINESS | 5 Dec 2008 | 12:52 am Bernanke urges action on foreclosuresBen Bernanke, the US Federal Reserve chairman, urged policymakers to boost efforts to stem home foreclosuresSource: Financial Times - US homepage | 5 Dec 2008 | 12:37 am Woolworths holds sale after Theo Paphitis of Dragon's Den says 'I'm out'Woolworths will hold its biggest sale today after Theo Paphitis, the Dragons’ Den entrepreneur, walked away from a bid for the collapsed retail chain.Source: Latest Business News from Times Online | 5 Dec 2008 | 12:00 am Top 10 incentives for house buyersThis is the Christmas of the big discount: shops may be offering reductions of 25 per cent but big-name housebuilders are slashing prices by up to 50 per cent for customers who know how to haggle.Source: Latest Business News from Times Online | 5 Dec 2008 | 12:00 am Discover the history of your houseClick here for your chance to win a history of your homeSource: Latest Business News from Times Online | 5 Dec 2008 | 12:00 am Mortgage plan shows increased gov't role (AP)AP - If you're looking for a mortgage, Uncle Sam may be the only game in town.Source: Yahoo! News: Business | 4 Dec 2008 | 11:56 pm EMI in US distribution talks with competitorsThe music publisher is in talks with rivals over a US distribution deal that could bring in tens of millions of dollars for the indebted company, after earlier talks about selling some of its labels stalledSource: Financial Times - US homepage | 4 Dec 2008 | 11:37 pm Interest rates slashed across Europe to 2.5pcBRUSSELS - Europe's central banks slashed borrowing costs aggressively overnight to try and ward off a long recession triggered by the financial crisis. Their rate cuts tried to counter a slowdown that looks longer and deeper than...Source: New Zealand Herald - Business | 4 Dec 2008 | 11:30 pm Stephen Schork Sees Oil Price at $30 to $50 a BarrelSource: Bloomberg - All Podcasts | 4 Dec 2008 | 11:05 pm Jacqueline Smith: Salon supremo not about to cut backA few years ago Rodney Wayne decided to leave the salon and do a stint in the country - building stone walls, working on his boat and working with livestock. While it was fun at the time, Wayne says it also made him realise "I love...Source: New Zealand Herald - Business | 4 Dec 2008 | 11:00 pm VIX Index of U.S. Stock Option Prices Advances 4.8% to 63.64Source: Bloomberg - All Podcasts | 4 Dec 2008 | 10:51 pm Detroit's Big Three open to oversightMembers of the US Congress gave the Big Three US automakers' request for billions of dollars in federal aid a far warmer welcome than just two weeks ago in an indication that a bail-out of Detroit may be gaining political momentumSource: Financial Times - US homepage | 4 Dec 2008 | 10:42 pm WisdomTree Launches Fundamentally-Weighted Growth FundSource: Bloomberg - All Podcasts | 4 Dec 2008 | 10:41 pm NZ Shares: Market slips early after sharp US dropThe New Zealand sharemarket slipped in early trading, after United States equities ended sharply lower on concern General Motors may file for bankruptcy and with a plunge in energy shares following a prediction oil will hit US$25...Source: New Zealand Herald - Business | 4 Dec 2008 | 10:37 pm English confirms rise in ACC levies likelyFinance Minister Bill English has confirmed there is likely to be a "significant" rise in the amount workers pay to ACC from April 1 next year. ACC Minister Nick Smith yesterday revealed officials wanted to increase levies...Source: New Zealand Herald - Business | 4 Dec 2008 | 10:30 pm Dreary November sales results in focus (AP)AP - People's shopping binges fueled by deep discounts on the day after Thanksgiving didn't prevent retailers from having a terrible November, which turned out to be the worst month since at least 1969. The biggest exception was Wal-Mart Stores Inc., which reported a solid sales gain.Source: Yahoo! News: Business | 4 Dec 2008 | 10:22 pm Taking Stock: Global impact of crisisAll the economic troubles might have started in the United States, but they haven't ended here. Kai Ryssdal talks with Nobel Prize-winning economist Amartya Sen about the global impacts.Source: Marketplace | 4 Dec 2008 | 10:04 pm Recession slows pro sports actionProfessional sports haven't been immune to problems from the recession. But business-of-sports commentator Diana Nyad tells Kai Ryssdal the sports having the most trouble are the ones with the biggest toys.Source: Marketplace | 4 Dec 2008 | 10:04 pm Hard part of green energy: plugging inCalifornia hopes to generate about a third of its electricity from renewable sources by 2020. But it's finding the hard part is tying all that new green power into the existing grid. Sam Eaton reports.Source: Marketplace | 4 Dec 2008 | 10:04 pm Global stocks fail to get lift from rate cuts (AFP)
Source: Yahoo! News: Business | 4 Dec 2008 | 10:04 pm How would Treasury's plan work?To find out how Treasury's mortgage rate-cut plan might come together -- or whether it's even possible -- Kai Ryssdal talks with Susan Wachter, professor of real estate at the University of Pennsylvania.Source: Marketplace | 4 Dec 2008 | 10:04 pm Treasury may try mortgage rate cutTreasury Secretary Paulson is said to be considering a plan to use Fannie Mae and Freddie Mac to push down mortgage rates for new home purchases to as low as 4.5%. Marketplace's Steve Henn reports.Source: Marketplace | 4 Dec 2008 | 10:04 pm No clear road yet for carmakers' bailoutA more humble collection of auto industry CEOs came calling on Congress today. But the jury's still out on whether their latest proposal will get them the money they need. Nancy Marshall Genzer reports.Source: Marketplace | 4 Dec 2008 | 10:04 pm Northern Ireland's Robinson,McGuinness See Cooperative SolutionSource: Bloomberg - All Podcasts | 4 Dec 2008 | 9:38 pm Duignan Says 50% of Caterpillar's Revenue Is From Outside U.S.Source: Bloomberg - All Podcasts | 4 Dec 2008 | 9:33 pm Economists warn on LatAm credit squeezeHuge volumes of US Treasury bonds issued as part of an effort to reverse an economic slump threaten to stop access to credit by Latin American governments facing financing needs of an estimated $250bn next year, a group of prominent economists from the region has warnedSource: Financial Times - US homepage | 4 Dec 2008 | 9:20 pm Author Atwood Says Credit Market `Faith' May Fix CrisisSource: Bloomberg - All Podcasts | 4 Dec 2008 | 8:55 pm Europe's central banks slash ratesInterest rates were slashed on a historic scale across Europe as central banks reacted aggressively to the sudden and brutal deterioration in the economic outlook since the autumnSource: Financial Times - US homepage | 4 Dec 2008 | 8:40 pm Author John Updike Says He's a `Less Heated' Writer NowSource: Bloomberg - All Podcasts | 4 Dec 2008 | 8:26 pm US retailers suffer worst month this decadeUS retailers experienced their worst month this decade in November, as stores such as Macy's, Gap and Abercrombie & Fitch reported double-digit falls in comparable store sales amid the economic gloomSource: Financial Times - US homepage | 4 Dec 2008 | 8:24 pm Koplewicz Says Child Psychiatric Disorders UndertreatedSource: Bloomberg - All Podcasts | 4 Dec 2008 | 7:58 pm Hytner Says Credit Woes Won't Hurt U.K. National TheatreSource: Bloomberg - All Podcasts | 4 Dec 2008 | 7:55 pm The Little Three Beg for Big MoneyIt took about nine hours on the highway for the chief executives of the Big Three automakers to arrive on Capitol Hill. It took just a few minutes of questioning from lawmakers for them to realize they might not get what they want.General Motors' Rick Wagoner, Chrysler's Bob Nardelli, and Alan Mulally of Ford appeared before Congress for the second time in recent weeks to beg and plead for government funds to keep them afloat. Last time, they were ridiculed for flying on private jets, receiving big compensation packages, and having no detailed plans for the funds they were requesting. This time, they drove from Detroit in fuel-efficient cars, agreed to take symbolic $1 salaries, and presented plans for how they would stay in business with government help. Unfortunately, they may be driving home without so much as a penny of the $34 billion they requested. Comments by members of the Senate banking committee underscored the intensity of the debate over whether or not to bail out the automakers and, if so, how. The fact that all three of the chief executives agreed to execute their plans under a newly created federal oversight board didn't appear to sway many senators to agree to the financing. G.M. has requested $4 billion immediately and another $14 billion in loans next year, with the promise to repay the government by 2011. Ford needs $9 billion in bridge financing, and Chrysler wants $7 billion immediately. Wagoner and Nardelli both suggested that Congress check back in with them on March 31 to see if they need more funds to keep going. The $34 billion requested, one congressman noted, is more than 5 times the total market capitalizations of the three companies combined. Members of Congress seem perplexed on how to finance the automakers, should they agree to take that path. The Treasury department could include the carmakers in the $700 billion TARP, since Congress approved loose restrictions on how that money can be spent. The Federal Reserve won't likely lend to the Big Three directly because none of them can meet the Fed's collateral requirements for financing. Another witness today, economist Mark Zandi of Economy.com, forecasts that the total cost of bailing out Detroit would reach as much as $75 billion to $125 billion. The debate will continue tomorrow when the executives appear before the House financial services committee. Related Links Jump-Starting a Bailout Why the Detroit Bailout Should Include Bankruptcy AMI Chief Asks Employees to Back Auto Bailout Source: Portfolio.com: Top 5 | 4 Dec 2008 | 7:30 pm Argus Research's Tynan Sees `More Pain' for U.S. AutomakersSource: Bloomberg - All Podcasts | 4 Dec 2008 | 7:17 pm China lectures US on economyThe US was lectured about its economic fragilities as senior Chinese officials urged the administration to stabilise its economy, boost its savings rate and protect Chinese investmentsSource: Financial Times - US homepage | 4 Dec 2008 | 7:10 pm Credit Suisse to cut 11% of staffThe Swiss bank warned it had lost a net SFr3bn in the two months to the end of November and would axe about 5,300 jobs, principally in investment bankingSource: Financial Times - US homepage | 4 Dec 2008 | 6:55 pm We Walk the LineThis will be the winter of our discontent. The impact of the recession on working Americans has been highlighted today by a series of announced cutbacks. A day before the November employment report is expected to show the worst job losses since the recession of the 1973-'74, there was this news: •Viacom is eliminating 870 jobs, or 7 percent of its workforce. •Credit Suisse is getting rid of 5,300 jobs, or about 11 percent of its staff. What a Recession Looks Like Culling the Herd on the Street Big Job Losses Early -- Good or Bad? Source: Portfolio.com: Top 5 | 4 Dec 2008 | 2:00 pm Bound for ZeroNext year will be the Year Zero for the global economy.In recognition that the worldwide recession will be deep and prolonged, and with the specter of deflation on the horizon, European central banks furiously slashed interest rates today. The moves come just days after Ben Bernanke, the Federal Reserve chairman, signaled that U.S. interest rates would also be soon heading toward zero. Zero interest rates are very rare, and there are concerns that they will have little stimulating effect on the economy. The massive unwinding of leverage around the world means that there already is liquidity in the system; there is just no worthwhile place to deploy. Investors and businesses may have already priced in zero interest rates. When they hit bottom, it won't matter. And then there is the example of Japan. After a bursting of real-estate and stock-market bubble, the Bank of Japan slashed rates to zero. But the Japanese economy simply crept to a near halt in the 1990's. Its benchmark rate is still 0.3 percent. "Zero is almost a sign of complete and total failure," the economist Ed Yardeni has said. "It is reminiscent of Japan, and Japan was not exactly a success story." Today, the European Central Bank lowered its benchmark rate to 2.5 percent. It was a steeper cut than expected, and it was the bank's biggest in its 10-year history. Since October, the E.C.B. has made two half-point cuts. "The recognition that we are not in ordinary times, and that this is not an ordinary recession, probably goes in the right direction to boost the real economy and credit markets," Gilles Moec, an economist with Bank of America, told Reuters. Some of the biggest European economies are officially in a recession: Germany, Italy, and Britain. Earlier, the Bank of England slashed its rate by a full point, to 2 percent, after cutting it one-and-a-half points last month. The benchmark interest rate has not been 2 percent since November 1951, when Winston Churchill's Conservatives defeated the Labor Party as Britain was still struggling with a postwar recovery. The Bank of England has never had rates lower than 2 percent. "Consumer spending and business investment have stalled, while residential investment has continued to fall," the Bank of England said in a statement. "Activity indicators in the rest of the world have also weakened." Sweden's central bank lopped its benchmark rate by a stunning one-and-three-quarter points, to 2 percent. Later this month, the Federal Reserve is expected to reduce its benchmark rate by a half point, to 0.5 percent. In a speech earlier this week, Bernanke spoke of other arrows in the Fed's quiver, saying "there are several means by which the Fed could influence financial conditions through the use of its balance sheet." Related Links Worst of Times Broken English Shock, Not Much Awe Source: Portfolio.com: Top 5 | 4 Dec 2008 | 1:30 pm
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