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North Sea oil firm up for saleOILEXCO, the ailing North Sea oil producer, has been put up for sale just two weeks after it was forced to scrap a disastrous effort to raise fresh capital.Source: Latest Business News from Times Online | 27 Dec 2008 | 12:00 am Senate returns to auto bailout talks (Reuters)
Source: Yahoo! News: Business | 8 Dec 2008 | 12:00 pm Deutsche Boerse rebuffs rumors on NYSE talks (AP)AP - Deutsche Boerse rebuffed rumors that it might join with NYSE Euronext Inc. to create the world's leading stock exchange, issuing a statement Sunday flatly declaring it had nothing to report.Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 12:00 pm Ex-Carphone chief used non-exec shares for loansDavid Ross, the co-founder of Carphone Warehouse who resigned this morning, also used his shareholdings in National Express, Big Yellow Group and Cosalt, companies where he holds directorships, to guarantee personal loans.Source: Latest Business News from Times Online | 8 Dec 2008 | 11:59 am Wall Street looks for upbeat open (AP)
Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 11:58 am German industrial output slumpsGerman industrial output drops by a more-than-expected 2.1% during October, Germany's economy ministry says.Source: BBC News | Business | World Edition | 8 Dec 2008 | 11:54 am Shock exit of Carphone co-founderDavid Ross, Carphone Warehouse co-founder and holder of 19.4% of its shares, quits in a scandal over the use of his shares.Source: BBC News | Business | World Edition | 8 Dec 2008 | 11:49 am World markets surge on global stimulus hopes (AP)
Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 11:48 am The Tribune Company Is More About Private Equity Than Newsapers
Tribune's failure says more about the private equity and LBO industry than it does about newspapers, although there is no denying that the print business is at the end of its life and most properites in the industry will end up radically changing the way that they conduct themselves and some will simply disappear. Tribune borrowed $12 billion to take itself private. It was able to do that even when it was clear that newspapers were no longer a high margin business. It was a sign that there was still some gas in the tank of private equity and commercial banks which funded these sorts of things. In a robust economy banks would not let a business as big as Tribune fail. The write-offs would be too large. Availabe capital could allow the firm to sell properties or take other measures to cover debt service. In a vicious downturn, the banks won't risk one more penny and private capital will not put in additional equity capital. These firms already have investors who are up in arms about money lost on LBOs which were done at riciculously high prices. The Tribune is just a canary in the coal mine. The next big company which went through the process of becoming a private enterprise may fail as well, whether it is a hospital chain, a manufacturing company, or a retailer. There is not cash to save them. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 11:48 am Qantas boss says BA deal in doubtQantas warns that merger talks with British Airways could fail because of BA's potential tie-up with Spain's Iberia.Source: BBC News | Business | World Edition | 8 Dec 2008 | 11:37 am Wall Street seen opening higher as bailout package focus(Reuters) - Futures point to a higher start on Wall Street on Monday. Futures for the S&P 500, for the Dow Jones Industrial average and Nasdaq were up 2.4 to 2.6 percent at 6:25 a.m.Source: Reuters: Business News | 8 Dec 2008 | 11:36 am Wall Street seen opening higher as bailout package focus (Reuters)
Source: Yahoo! News: Business | 8 Dec 2008 | 11:35 am Wall Street seen opening higher as bailout package focus (Reuters)
Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 11:35 am 2008 crop has Mo. wineries popping their corksA year after a freak spring freeze nearly derailed the Missouri wine industry, the grape gods have been kind to vineyard owners like Sarah Schmidt _ perhaps too kind. A cool, wet spring...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:30 am China auto sales fall in NovemberChina's passenger car sales fell 10.3 percent in November from a year earlier as stalling economic growth sapped consumer confidence, state media reports said Monday. It was the third...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:24 am As Downturn Spreads, Business Failures Could Be Key To Depth Of Trouble
Since, by many estimates, businesses with under 100 employees represent more than 50% of the jobs in the US, watching a huge number of them burn out has become cause for increasing alarm, an alarm which does not appear to be addressed by any government bailout program. According to the FT, The US will see 62,000 companies go bust next year, compared with 42,000 this year and 28,000 last year, says a report by Euler Hermes, part of German insurer Allianz. If the median number of people at those companies is 50, another three million people could be out of work. As long as the government focuses it efforts on saving huge companies like GM (GM), Ford (F), Citigroup (C), and AIG (AIG), a segment of the employment market which may even be more important will remain unaddressed. Saving twenty big companies might salvage one or two million jobs. But, if more modest enterprises go under in great numbers, what has been saved will be more than offset by what is lost. Helping tens of thousands of small operations is particularly difficult which makes it not unlike trying to improve the troubles of millions of mortgage holders. The government has tried to fix the housing crisis from the top down. Giving large banks a lot of capital should stimulate lending. It doesn't. The financial firms simply squirrel the money away for a rainy day. Without an effective assistance program for small companies, helping big ones is only half a measure. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 11:24 am Citadel closing Tokyo office, cuts HK jobs: reportsHONG KONG (Reuters) - U.S. hedge fund giant Citadel Investment Group LLC, which has racked up hefty losses this year, is closing its Tokyo office and its Asia principal investment operations by the end of this year, media reports said on Monday.Source: Reuters: Business News | 8 Dec 2008 | 11:22 am Tribune prepares for possible bankruptcy filing: reportNEW YORK (Reuters) - Publisher and broadcaster Tribune Co. is preparing for a possible bankruptcy-protection filing as soon as this week, The Wall Street Journal reported on its website on Sunday, citing people familiar with the matter.Source: Reuters: Business News | 8 Dec 2008 | 11:20 am President-elect's plan to build jobsPresident-elect Barack Obama on Saturday revealed five parts of his plan to save or create 2.5 million jobs by 2011, and said he will push for immediate action by Congress when he takes office in January.Source: Business and financial news - CNNMoney.com | 8 Dec 2008 | 11:17 am Obama: No more porkPresident-elect Barack Obama issued a warning Sunday to officials around the country lining up for federal dollars to help projects take off in the struggling economy: No more business as usual.Source: Business and financial news - CNNMoney.com | 8 Dec 2008 | 11:16 am Audi bucks trend to report rise in November salesSales by German automaker Audi rose 0.4 percent last month, the company said on Monday, demonstrating that the Volkswagen division had bucked the prevailing sector slump. ForSource: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:15 am Britain's manufacturers see costs slide in NovSliding oil prices pushed British manufacturers' costs lower in November, official figures showed Monday, further stoking expectations that the Bank of England could cut its benchmark rate...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:14 am Finance ministers debate climate change in PolandFinance ministers and top officials from 15 nations have opened two days of talks on what financial measures should be used in the global fight against climate change. Polish Finance...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:11 am Will Obama's tax plans bite small biz?Joe the Plumber must be pleased: President-elect Barack Obama has recently hinted he'll delay his plan to raise taxes on individuals earning more than $250,000 a year. But what will this reprieve really mean for small business owners - should they prepare for an eventual tax hike?Source: Business and financial news - CNNMoney.com | 8 Dec 2008 | 11:10 am Global markets soar on stimulus hopesGlobal stock indexes surged Monday, as investors bet that governments worldwide will keep rolling out measures to jolt their economies and cheered signs that a deal to keep U.S. automakers out of bankruptcy is close.Source: Business and financial news - CNNMoney.com | 8 Dec 2008 | 11:10 am World markets surge on global stimulus hopesEuropean and Asian stock markets surged Monday after Wall Street's rebound on Friday as investors took heart from new plans to bolster growth around the world. The FTSE 100 index of...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:07 am Oil prices rebound after slide under $40Oil prices rebounded on Monday after slumping under 40 dollars a barrel to near four-year lows before the weekend on news of massive job losses in the United States, the world's biggest...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:07 am Stocks set for upbeat startU.S. stock futures rose sharply Monday, lifted by President-elect Barack Obama's plan to boost the economy and signs that Detorit's automakers would stay out of bankruptcy.Source: Business and financial news - CNNMoney.com | 8 Dec 2008 | 11:07 am Obama: Carmakers need change at topPresident-elect Barack Obama announced support Sunday for a short-term government bailout of the nation's carmakers that is tied to industry restructuring as he accused auto executives of a persistent "head-in-the sand approach" to long-festering problems.Source: Business and financial news - CNNMoney.com | 8 Dec 2008 | 11:06 am U.S., Europe and Asia to raise stimulus stakesLONDON (Reuters) - Chinese and European leaders were due to plot their next steps on Monday to steer the world economy away from a precipice, while stimulus measures presented, planned or pending propelled stock markets higher.Source: Reuters: Business News | 8 Dec 2008 | 11:06 am As Economic Concerns Spread, Even Healthier Companies Cut Further
HP (HPQ) laid off 24,000 people a month ago, ostensibly because it was integrating newly purchased tech consulting firm EDS. It must have missed some people. The computer company is about to cut again. HP is replacing the CEO of EDS with one of its own. The process is, according to The Wall Street Journal, "expected to allow H-P to continue to quickly realize its revenue growth and cost-efficiency goals for EDS." That is code for pushing more people out the door. In the last quarter, HP made over $2.7 billion on $28 billion in sales. The company has $14 billion in cash. Nonetheless, it is still looking for efficiencies and may be looking harder than usual because it is feeling the effects of the economic slowdown. If the US firms which are still well-off cut hundreds of thousands of more jobs, the process of trying to revive the economy will be much, much longer. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 11:05 am U.S., Europe and Asia to raise stimulus stakes (Reuters)
Source: Yahoo! News: Business | 8 Dec 2008 | 11:05 am U.S., Europe and Asia to raise stimulus stakes (Reuters)
Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 11:05 am Falling factory costs raise deflation threatFactory gate inflation eased again last month as the cost of raw materials continued to fall sharply, fuelling expectations that the Bank of England will have to cut interest rates again to stave off the threat of deflation.Source: Latest Business News from Times Online | 8 Dec 2008 | 11:01 am Citadel closing Tokyo office, cuts HK jobs-reportsHONG KONG (Reuters) - U.S. hedge fund giant Citadel Investment Group LLC, which has racked up hefty losses this year, is closing its Tokyo office and its Asia principal investment...Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:00 am Brain boosters: Why not? - experts askCHICAGO, Dec 8 (Reuters) - Healthy people are increasingly turning to brain-enhancing drugs like Ritalin to boost their performance in school or at work, researchers said on Monday.Source: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 11:00 am HSBC to increase UK mortgage lending by 20 pct (AP)AP - HSBC Holdings PLC, Britain's largest bank, said Monday it planned to increase the amount of money it lends to Britons for mortgages by 20 percent next year.Source: Yahoo! News: Business | 8 Dec 2008 | 10:59 am HSBC to increase UK mortgage lending by 20 pctHSBC Holdings PLC, Britain's largest bank, said Monday it planned to increase the amount of money it lends to Britons for mortgages by 20 percent next year. The London-based bank said itSource: Infocious RSS raw feed - channel BNewsBusiness | 8 Dec 2008 | 10:59 am Markets surge on stimulus hopesShares in Europe and Asia jump on hopes new economic stimulus plans in the US and elsewhere will boost the global economy.Source: BBC News | Business | World Edition | 8 Dec 2008 | 10:51 am Retailing's Little Secret: People Are Spending Less
The numbers are not uniform. Apparel spending is way down. Video game purchases are up. The big trouble retailers have is that they work on tiny margins. Yield-per-sale is critical. Big discounting usually means big losses. According to The New York Times, research from Chase "which surveys 25 of the largest 150 retailers on its Internet payment processing network, showed that the average shopper spent $7.19 less per transaction on Cyber Monday this year over last — reflecting deeper discounts than usual, thriftier shoppers or both." Wall St. had started to express some optimism about retailers. Maybe this holiday would not be as bad as forecast. There has even been talk that "pent up demand" will lead to reasonable sales in December. It does not matter much if most purchases represent a loss. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 10:48 am Senate returns to auto bailout talksWASHINGTON (Reuters) - The U.S. Senate was due to reconvene on Monday as White House and Democratic congressional negotiators sought to draft legislation to bailout the U.S. auto industry and stem a deepening of the U.S. recession.Source: Reuters: Business News | 8 Dec 2008 | 10:45 am Merrill Lynch's (MER) Thain: The Only Man On Wall St. Who Earned His Pay
The board is wrong about Thain. He wants $10 million and he earned it. According to The Wall Street Journal. the financial firm's compensation committee does not want to give Thain a dime. Among other things it would look bad with all that carnage in the banking industry. One point of view about Thain is that he surrendered Merrill into servitude without much of a fight. He could have tried to hang on like Morgan Stanley (MS) did. Thain has only been at his company for a year, and he walked into the pigsty that former CEO Stan O'Neal left behind. Merrill could have gone under like Lehman and Bear Stearns did. No one will even know. What can be known is that Merrill sold down to under $14 when investors panicked in July. It dropped below $12 in September before Thain did his deal with B of A. Today, Merrill shares is off 30% for the year, less than the DJIA. Morgan Stanley, which took outside money to stay independent, is down over 70% for the same period. If Thain did not save Merrill, he did save its share price and probably kept investors from losing billions of dollars. For accomplishing that, $10 million is nothing. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 10:35 am Banks need to broaden view of risk: Fed's Kroszner (Reuters)
Source: Yahoo! News: Business | 8 Dec 2008 | 10:33 am Banks need to broaden view of risk: Fed's KrosznerWASHINGTON (Reuters) - Banks need to take a much broader view of investment risk as they dig their way out of the current financial crisis, and mortgage-backed securities need to become simpler and much more transparent, a senior U.S. Federal Reserve official said on Monday.Source: Reuters: Business News | 8 Dec 2008 | 10:33 am Steel firm SSAB to cut 1,300 jobsSwedish steel maker SSAB plans to cut 1,300 jobs as it tries to reduce costs amid falling demand for steel.Source: BBC News | Business | World Edition | 8 Dec 2008 | 10:30 am Carphone Warehouse co-founder Ross resigns over disclosure issueLONDON (MarketWatch) - Carphone Warehouse deputy chairman and co-founder David Ross has resigned from the independent mobile phone retailer after failing to disclose he had pledged the bulk of his shareholding in the company as a security against personal loans.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 10:28 am Asia Markets: Markets upbeat on hope for more government stimulus plansAsian stocks jumped Monday, with investors heartened by signs that governments will roll out more stimulus measures to ward off an economic collapse.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 10:20 am Major ad firms mulling job cuts: report(Reuters) - Advertising firms Interpublic Group, Omnicom Group Inc and WPP Group are weighing further job cuts as the advertising market deteriorates, the New York Post reported.Source: Reuters: Business News | 8 Dec 2008 | 10:18 am Pakistan arrests suspected Mumbai plannerPakistani security forces said they had arrested Zaki ur Rehman Lakhvi, one of the suspected planners of last month's Mumbai attack, in a raid on a militant camp belonging to the outlawed Lashkar-e-Taiba groupSource: Financial Times - US homepage | 8 Dec 2008 | 10:05 am Cheaper oil cuts producer pricesThe cost of goods leaving UK factories fell 0.7% in November according to official figures, due largely to falling oil prices.Source: BBC News | Business | World Edition | 8 Dec 2008 | 10:03 am Santa's Last Stand
For reasons that no one has explained well, the government undercounts the number of unemployed persons by excluding those who are part-time workers looking for full-time jobs and those who are too disillusioned to be looking at all. According to Webster's, unemployed is unemployed. Adding up all of the people without full time jobs brings the jobless rate to more than 12%. The calculus of panic would figure that another 12% of working people feel certain that they will soon be out of jobs, and 12% on top of that are worried about their fortunes. By that reckoning, nearly half of all Americans are frightened about what will become of their incomes. Even the most spiritually inclined, who shun materialism, hope to get some kind of tangible reward for their year of goodness when the holidays arrive. This holiday season should not be entirely disappointing for many people. The fear of a recession has overcome most shoppers, but retail sales are off only modestly so far. There are hopes that the last two weeks of shopping will bring out the inner generosity of those hermitted by concerns and that the 2008 holiday season will be short of a real disaster for retailers. It is next year that should be the real concern. Scrooge has not been visited by The Ghost of Christmas Yet to Come. There is nothing to be seen there but a tombstone. The 2009 shopping season will be much worse than this year's. Nearly every expert from the president-elect to associates of the National Bureau of Economic Research sees retail sales, GDP, credit, and housing repelling down the mountain much more rapidly in the quarters ahead. The pessimists in the forecasting business predict 10% unemployment by the end of 2009. Adding in what the Labor Department refuses to count and the figure will probably be closer to 16%. If there is any false elation during this holiday period it is because people have the vague or unconscious sense that next year will be much worse. Best to eat, drink, and be merry now. Looking toward the void is too awful. Now that the new administration is just a few weeks from charging into Washington it is responding to reality by muting expectations. The idea of a public works program brought the nation's governors out of their fox holes with $136 billion worth of infrastructure upgrade programs. The governors claimed that for each $1 billion spent, the economy would add 40,000 jobs. Those figures are probably less accurate than the claims of The Big Three that $34 billion will solve their entire multitude of problems. The only thing which is clear is that massive national programs do not take root in a few weeks or a few months. There is absolutely nothing this side of the horizon that will save the economy from a vicious keelhauling and the loss of another two or three million jobs. The truth of it is that all of those who dream of being the heroes who will save the nation's jobs and correct the credit market are in a race against the awful ravages of joblessness which could come close to matching levels from the 1930s. Those who would like to be well thought of in the history books have until the end of next year to show that their programs will make a meaningful difference. If not, the recession is likely to settle in for a long stay. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 9:49 am London shares soar over 6% at open (AFP)
Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 9:42 am Hynix reported to seek $691 million credit lineHynix Semiconductor Inc. has sought 1 trillion won ($691 million) in financial support from its creditors as it faces a liquidity crunch and struggles as chip prices are falling, reports say.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 9:27 am Sarkozy and PM in economy talksNicolas Sarkozy and Jose Manuel Barroso are to meet Gordon Brown at Downing Street for talks on the global economy.Source: BBC News | Business | World Edition | 8 Dec 2008 | 9:23 am London Markets: Banks, oil producers front broad-based rally for London sharesLONDON (MarketWatch) - Beaten-down oil majors, mineral extractors and financial firms gained sharply in London on Monday morning, fronting a broad market rally that added more than 200 points to the top share index.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 9:23 am Deutsche Boerse shares gain after NYSE Euronext talksShares in Deutsche Boerse gained as much as 9% Monday after weekend reports said the firm had discussed a merger with rival NYSE Euronext, though any talks ended without a deal, the German exchange operator later said.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 9:21 am Company crashes set to hit record next yearRecord numbers of companies will go bankrupt next year with 200,000 insolvencies in Europe alone and an 'explosion' of failed businesses in the US, says credit insurer AllianzSource: Financial Times - US homepage | 8 Dec 2008 | 9:14 am UK car parts firm Wagon collapsesThe UK arm of European car parts business, Wagon Automotive, is to go into administration after financing talks with its banks failed.Source: BBC News | Business | World Edition | 8 Dec 2008 | 9:12 am Asian stocks up on stimulus plansAsian shares jump on hopes new economic stimulus plans in the US and other countries will boost the global economy.Source: BBC News | Business | World Edition | 8 Dec 2008 | 9:09 am Second break for Mini productionThe Mini production plant in Oxford is to have a second extended break for the weekend shift in January.Source: BBC News | Business | World Edition | 8 Dec 2008 | 9:04 am Pontius Pilate Races Out Of Detroit
It is hard to imagine that the next Congress will have enough time to understand the problems of the auto industry before it has to act on whether to save the companies or let them fail. The money that the outgoing group is planning to send to Detroit to tide it over until next year is estimated to be about $15 billion. Moody's Economy.com's chief economist told the US Senate Committee on Banking, Housing and Urban Affairs that the total expense of saving the domestic auto industry would be as high as $125 billion. At the same time one of the leading firms which tracks the car industry, the Center for Automotive Research, said that, between the recession and necessary plant retooling, the domestic companies will not be healthy again before 2015. The most important thing that the federal government can do now is to force a direction for The Big Three. Each day that passes without those actions is a day closer to when suppliers bull-rush the courts to force a liquidation in the hope of getting something as the pieces are auctioned off. It is a long bet but one that desperate firms that think they may receive nothing at all in a Chapter 11 may try. A 1% chance of being reimbursed is better than none for these companies holding IOUs. This unfortunately is the race that Congress is up against. The other option, which would involve even more guts, is to flatly turn the car companies down. That would leave them to work out their problems in the bankruptcy system. At least they would not be strung along for weeks at a time, like they are now, burning money that they could use as a part of a work-out process. If the CFOs at GM and Chrysler were in charge, they would probably take their companies into Chapter 11 now while they still have some cash on their balance sheets. What Congress has effectively done, by doing nothing, is leave a problem which must be resolved now until a time which is too long from now. The CEOs of Detroit have added to the problem by not drawing a line in the sand. Help us by this date, or we take the ugly way out. Neither side has the courage to say at least we did not wait until it was too late. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 9:00 am World stocks rocket on hopes of fresh policy action (AFP)
Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 9:00 am China stocks up on hopes for new economy measures (AP)AP - Chinese shares rose Monday for a sixth straight session on hopes the government will take new steps to boost economic growth after a high-level planning meeting this week.Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 8:50 am China stocks up on hopes for new economy measures (AP)AP - Chinese shares rose Monday for a sixth straight session on hopes the government will take new steps to boost economic growth after a high-level planning meeting this week.Source: Yahoo! News: Business | 8 Dec 2008 | 8:50 am Media Digest 12/8/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that Merrill Lynch (MER) CEO Thain is seeking his $10 million bonus. Reuters reports that unsold cars are piling up, including formerly profitable hybrids. Reuters writes that the Fed's Kroszner said that banks need to broaden their view of risk. Reuters reports that 3M (MMM) will cut 1,899 jobs. Reuters reports that The New York Times (NYT) will borrow against its new building. Reuters reports that The Tribune Company is filing for a possible bankruptcy. Reuters reports that UBS (UBS) may cut another 4,500 jobs. The Wall Street Journal writes that pressure is growing to fire GM (GM) CEO Wagoner. The Wall Street Journal reports that ad-spending forecasts are glum. The Wall Street Journal reports that Kroger (KR) is about to post a solid profit. The Wall Street Journal reports that hedge fund redemptions are picking up speed. The Wall Street Journal reports that Deutsche Börse held exploratory talks with NYSE Euronext (NYX) about heightened cooperation -- including a possible merger -- but they ended without success. The Wall Street Journal reports that HP (HPQ) has announce further plans to integrate EDS. The Wall Street Journal report that Intel (INTC) say it has made further advances in silicon components. The Wall Street Journal reports that mayors are lobbying for US bailout money. The Wall Street Journal reports that venture capital investors are beginning to renege on their obligations. The New York Times writes that the economic downturn has decimated the market for recycled materials. The New York Times reports that new data show the recession is likely to be the longest and most severe since WWII. The New York Times reports that The Big Three have to wrestle with the total cost of the car company bailout which could be as high as $125 billion. The New York Times reports that Obama warned of further economic pain. The New York Times reports that online shoppers are spending much less per transaction this year. The FT reports that private equity firms are being asked by their investors to reduce commitments. The FT reports that the trouble in Detroit could undermine development of green cars. The FT writes that video game sales are still bright spots in the US holiday economy. The FT reports that the number of failed businesses could hit record highs in 2009. Bloomberg reports that M&A activity may drop 30% next year. Douglas A. McIntyre . Source: 24/7 Wall St. | 8 Dec 2008 | 8:49 am Europe Markets: Oil producers, banks pace sharp rise for European sharesEuropean shares rallied sharply on Monday morning, with oil majors and banks among the strongest performers.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 8:35 am Wagon collapse puts 500 British jobs at riskWagon Automotive, the car parts maker, is set to appoint administrators, putting 500 British jobs at risk, after failing to agree a rescue deal with its lenders.Source: Latest Business News from Times Online | 8 Dec 2008 | 8:34 am Asia Markets And Europe Open 12/8/2008
The Nikkei rose 5.2% to 8,329. The Hang Seng was up 8.4% to 15,002. The Shanghai Composite rose 3.6% to 2,091. At the open, the FTSE was up 6.1% to 4,297. The Dax was higher by 6.1% to 4,650, and the CAC 40 was up 6.9% to 2,192. Data from Reuters. Douglas A. McIntyre Source: 24/7 Wall St. | 8 Dec 2008 | 8:20 am Japan stocks gain as Asia jumps on stimulus hopes (AP)AP - Japanese stocks surged Monday, spurred by hopes that major governments will step up efforts to bolster their economies.Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 8:16 am City of Los Angeles to certify green businessesThe program to urge environmentally friendly practices hopes to launch in six months. Dumpster diving isn't in...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am State may see shortage of educated workers, group saysCalifornia could run short of college graduates needed to keep its economy humming by 2025, a think tank warned in a report to be issued today.Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am World markets surge on global stimulus hopesEuropean and Asian stock markets surged Monday after Wall Street's rebound on Friday as investors took heart from new plans to bolster growth around the world.Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am 'Four Christmases' tops box office againThe holiday comedy adds $18.2 million in second week; 'Twilight' shines on as runner-up. Lackluster reviews didn't...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am Their music for video games depends on playComposers record seconds of music that can be rearranged in many ways to match the changing action. Music composer...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am Debt-laden Tribune Co. prepares for possible bankruptcy filingThe company that owns the Los Angeles Times, Chicago Tribune and Chicago Cubs baseball team is preparing for a possible bankruptcy filing as it attempts to renegotiate $12 billion in debt obligations with...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am Downturn creates drama at NBCRestructuring and firings come as the networks struggle with hesitant advertisers and tech-savvy viewers. NBC's...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am PUC explores deregulation of state's electricity marketThe move would allow retail users to shop around for best prices, but some link that policy to the 2000-01 energy crisis. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am Bicycle builders are on a rollA small but increasing number of California craftspeople custom-build bicycle frames and parts. In an era of global...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am Debt-laden Tribune Co. explores possible bankruptcy filingThe company that owns the Los Angeles Times, Chicago Tribune and Chicago Cubs baseball team is preparing for a possible bankruptcy filing as it attempts to renegotiate $12 billion in debt with banks and...Source: Infocious RSS raw feed - channel BNPaperBusiness | 8 Dec 2008 | 8:00 am Taiwan's stock index rises 4.6 percent (AP)AP - Taiwan shares surged Monday, tracking strength on Wall Street and on regional bourses.Source: Yahoo! News: Stock Markets News | 8 Dec 2008 | 7:45 am Qantas CEO says BA merger faces major hurdlesSYDNEY (Reuters) - Qantas Airways Ltd warned investors its proposed $5.6 billion merger with British Airways Plc (BA) faced major obstacles over the terms of the deal and stressed there was a reasonable chance talks would fail.Source: Reuters: Business News | 8 Dec 2008 | 7:20 am Australian stocks: Market closes around four per upMELBOURNE - The Australian share market closed around four per cent higher on Monday, boosted by gains in the financial and resources sector and a rally on United States markets on Friday. At the 1615 AEDT close, the benchmark...Source: New Zealand Herald - Business | 8 Dec 2008 | 7:10 am NY Times Co to borrow against building: report(Reuters) - The New York Times Co plans to borrow up to $225 million against its mid-Manhattan headquarters building, to ease a potential cash flow squeeze as the company grapples with tighter credit and shrinking profits, the New York Times reported on its website Monday.Source: Reuters: Business News | 8 Dec 2008 | 6:52 am Fonterra staff settle for 6.5pc pay riseDairy Workers' Union members have settled for a 6.5 per cent immediate pay rise on a new three-year contract covering 4500 milk factory employees, including 1200 tanker drivers. Fonterra director of milk supply Barry Harris said...Source: New Zealand Herald - Business | 8 Dec 2008 | 6:50 am NZ stocks: Market gives up gains, closes downThe New Zealand sharemarket gave up early gains to close lower on a day in which other markets in the Asian time zone did better. The benchmark NZSX-50 closed down 6.911 points, or 0.255 per cent, at 2699.81. Volume was again light...Source: New Zealand Herald - Business | 8 Dec 2008 | 6:14 am Merrill's Thain seeking 2008 bonus of $10 million: report (Reuters)
Source: Yahoo! News: Business | 8 Dec 2008 | 6:11 am Merrill's Thain seeking 2008 bonus of $10 million: report(Reuters) - Merrill Lynch & Co Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the battered company's compensation committee is resisting his request, the Wall Street Journal said, citing people familiar with the situation.Source: Reuters: Business News | 8 Dec 2008 | 6:11 am Currency: Dollar falls against the AussieThe New Zealand dollar is continuing to reflect twists in the global financial story rather than domestic comments and data, with the main feature of its domestic session being a fall on the Australian cross. Against the Australian...Source: New Zealand Herald - Business | 8 Dec 2008 | 5:18 am Marsh on Monday: A Keynesian idea to tackle global trade during crisisLONDON (MarketWatch) -- Many people think the Group of Twenty leading economies - 80% of the world's gross domestic product - is nothing but a useless talking shop. Maybe they're right, but the institution is surely worth taking seriously, especially if it can be given a real job to carry out.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 5:01 am Jon Friedman's Media Web: Gawker's Nick Denton: Smart and bluntNick Denton, the chief executive of Gawker Media, who is as smart and blunt as his blogs, is worried about the economy’s impact on his media empire.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 5:01 am Decision on Hanover Finance High Court injunction plea due tonightThe High Court application for an injunction putting a halt on Hanover Finance's rescue plan meeting tomorrow is continuing in Auckland. Lawyer for disaffected investors Paul Dale has spent two hours this afternoon in the High...Source: New Zealand Herald - Business | 8 Dec 2008 | 4:23 am Tribune 'prepares for possible bankruptcy filing'Fears for the future of some of the largest US metropolitan newspapers are escalating after reports that Tribune, the owner of the Chicago Tribune and Los Angeles Times, has begun preparations for a possible bankruptcy filingSource: Financial Times - US homepage | 8 Dec 2008 | 4:17 am Fears of 35,000 jobs to go in NZ constructionAs new figures continue to emphasise the fall off in house building, there are fears 35,000 jobs could be lost in the construction sector. Numbers out today from Statistics New Zealand (SNZ) show the seasonally adjusted volume...Source: New Zealand Herald - Business | 8 Dec 2008 | 3:51 am Tribune could file for bankruptcy: WSJNewspaper publisher and broadcaster Tribune Co., weighed down by massive debt, could file for Chapter 11 bankruptcy protection as soon as this week, according to a published report Sunday.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 3:47 am Craig Stephen's This Week in China: China's optimism fades but watch for pockets of growthKeeping track of the widening Chinese casualties of the global recession is becoming increasingly difficult, but it is still worth watching for pockets of opportunity.Source: MarketWatch.com - Top Stories | 8 Dec 2008 | 2:59 am People research online, but buy in store - surveyConsumers research most products and services online but prefer to purchase goods in-store, an Australian survey has found. The Deloitte 2008 Consumer behaviour survey found that for expensive items in particular, the internet...Source: New Zealand Herald - Business | 8 Dec 2008 | 2:45 am AP IMPACT: How Freddie Mac halted regulatory drive (AP)
Source: Yahoo! News: Business | 8 Dec 2008 | 2:12 am More BurgerFuel stores 'uncertain' in current economyGourmet burger chain BurgerFuel Worldwide is posting a first half loss of $669,000, as it continues to invest in expansion. Chairman Peter Brook said the company had endured "extremely" challenging trading conditions with significant...Source: New Zealand Herald - Business | 8 Dec 2008 | 2:00 am Consumer confidence surges post-electionThe latest Roy Morgan consumer confidence survey, conducted over the two weeks November 17-30, shows New Zealanders have become more confident since the election. This is the highest reading since the brief September spurt, and...Source: New Zealand Herald - Business | 8 Dec 2008 | 1:45 am Newsroom layoffs at famous Chicago paperThe Chicago Tribune has notified its employees that several members of its newsroom staff will leave the paper by the end of the week. Editor Gerould Kern's memo to employees didn't specify the number of layoffs or who was leaving....Source: New Zealand Herald - Business | 8 Dec 2008 | 1:30 am Circle of ZellSam Zell is probably longing for a nice, old-fashioned real estate crash right now. After all, real estate moguls go bankrupt all the time and get famous for their second and third acts.The real estate mogul, who snapped up media giant Tribune and took it private last December, had big plans for newspapers with puppies and big profits. Instead, the company is close to defaulting on key debt covenants, locked in talks with lenders to restructure its payments and has hired Bruce Wasserstein’s Lazard to advise it through a possible bankruptcy filing. The Wall Street Journal reported Sunday that Zell’s company may not be "generating enough cash flow to cover nearly $1 billion in interest payments due this year, and Tribune owes a $512 million debt payment in June." With the nation’s newspaper industry in a shambles, Zell has been unable to offload other key Tribune holdings, such as the Chicago Cubs baseball team or a stake in the Food Network. Prospective buyers may have sat out the auctions knowing that the Tribune empire, which includes the Los Angeles Times, the Chicago Tribune and Baltimore Sun, wouldn’t see any real turnaround under Zell’s management. In the interest of journalistic schadenfreude, it would be comforting to see Zell chow down on some humble pie with a bankruptcy filing but this move could be a plan to tear the empire down as fast as he can and recalibrate the businesses to fit the current environment and, more pointedly, the mission he’s plotted. The cost of shutting down papers, however, could be a further drag on the company’s cash position. Since taking over Tribune, though, Zell often has been dismissive of newspaper owners and disdainful of journalists. In a recent interview with Joanne Lipman, the editor of CondeNast Portfolio magazine, Zell labeled the newspaper business model "unequivocally...a failure," and challenged New York Times publisher Arthur Sulzberger, saying "If you want to be a charitable trust, be a charitable trust. If you don't want to be a charitable trust, then you've got to focus on producing a return for investors' capital, and it's just that simple." He even went as fast as to hire a chief innovation officer to revamp the papers. Related Links Mogul Showdown: Murdoch vs. Zell 'Grave Dancer' Digs His Own Hole at Tribune Zell, Plaintiffs Vie for Support of 'Partners' Source: Portfolio.com: Top 5 | 8 Dec 2008 | 1:00 am Talks to create world's biggest exchange overInformal talks to create the world's biggest exchange operator by merging Deutsche Börse and NYSE Euronext have ended, it emerged last night.Source: Latest Business News from Times Online | 8 Dec 2008 | 12:00 am No easier to get tables at top restaurantsIf you thought that the credit crunch would make it easier to get a table at some of the country's best-known restaurants, you'd be wrong. A ring-round of top restaurants shows that reserving a table for two at the weekend is still a challenge.Source: Latest Business News from Times Online | 8 Dec 2008 | 12:00 am More jobs will go in service sector, says CBIThe CBI has piled on the economic gloom with a forecast of “significant” job losses in the coming months in the services sector, in professions such as accountancy and the law and in hotels, bars, restaurants, travel and leisure.Source: Latest Business News from Times Online | 8 Dec 2008 | 12:00 am Retention of defence head lifts British hopesBritish defence companies are upbeat about the reappointment of Robert Gates as US Secretary of Defence, forecasting that this will not mean cuts in the Pentagon's budget under an Obama administration.Source: Latest Business News from Times Online | 8 Dec 2008 | 12:00 am Spectre of deflation returns to haunt JapanDeflation, the financial spectre that stalked Japanese industry for nearly a decade, may be returning to the world's second-biggest economy in a “perfect storm” of crashing commodity prices and a surging yen.Source: Latest Business News from Times Online | 8 Dec 2008 | 12:00 am Spectre of deflation returns to haunt JapanDeflation, the financial spectre that stalked Japanese industry for nearly a decade, may be returning to the world's second-biggest economy in a “perfect storm” of crashing commodity prices and a surging yen.Source: Latest Business News from Times Online | 8 Dec 2008 | 12:00 am Is The Tribune Company Ready To File Chapter 11?
Public company newspaper chains Journal Register and Gatehouse have been kicked off the NYSE, and it is assumed that they are auctioning off their properties. According to The Wall Street Journal, the industry got another piece of bad new. The Tribune, which went private a year ago, may file for bankruptcy as early as this week. Douglas A. McIntyre Source: 24/7 Wall St. | 7 Dec 2008 | 11:21 pm Financial crisis hits horse breedersWall Street bonus money is disappearing from the bloodstock business, banks' equine lending teams are denying credit and a stronger dollar is deterring foreign buyersSource: Financial Times - US homepage | 7 Dec 2008 | 11:21 pm Investors turn the screw on buy-out groupsSome of the world's biggest buy-out groups are coming under pressure from investors to reduce their commitments after Permira offered to let its backers off the hook for €1.5bnSource: Financial Times - US homepage | 7 Dec 2008 | 11:16 pm Video gaming defies retail gloomThe video game industry appears to be alone in bucking a retail recession as consumers turn to fitness workouts, musical jam sessions and fantasy worlds to take their minds off the credit crunchSource: Financial Times - US homepage | 7 Dec 2008 | 11:16 pm Icap eyes independent film distribution marketIcap, the world's largest inter-dealer broker, has set its sights on Hollywood and the $12bn market in independent film distribution as it seeks to reduce its reliance on bond and foreign exchange trading.Source: Financial Times - US homepage | 7 Dec 2008 | 11:16 pm Survey: Gas prices near 5-year lowThe U.S. average for gas prices dipped to $1.75 a gallon, a near five-year low, a national survey said Sunday.Source: Business and financial news - CNNMoney.com | 7 Dec 2008 | 10:08 pm D Börse and NYSE end merger talksDeutsche Börse said talks with NYSE Euronext that could have led to the creation of the world's largest stock and derivatives exchange group merger options had endedSource: Financial Times - US homepage | 7 Dec 2008 | 8:48 pm Lay-offs expected to slam Wall StreetThe U.S. financial services industry is witnessing the bursting of yet another bubble. This time, it's the industry itself.Source: Business and financial news - CNNMoney.com | 7 Dec 2008 | 8:19 pm Big Three bail-out could hit green carsThe nascent US electric car industry could be put at risk because of the short-term focus on bailing out the Big Three carmakers, say two of the leading Silicon Valley entrepreneurs involved in the fieldSource: Financial Times - US homepage | 7 Dec 2008 | 7:01 pm Obama to focus on stimulus not deficitBarack Obama spelled out his plans for the biggest infrastructure investment in the US for half a century. The president-elect argued that with the economy reeling, his incoming administration could not afford to worry about a spiralling budget deficitSource: Financial Times - US homepage | 7 Dec 2008 | 6:47 pm Apple 5th-busiest retail site on Cyber MondayNo discounts, but shoppers still flocked to the tech site.Source: Business and financial news - CNNMoney.com | 7 Dec 2008 | 3:39 pm
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