Chinese exports drop in slowdown

China reports a fall in exports for the first time in seven years, as the global downturn starts to hurt its economy.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 1:03 pm

Rio Tinto to cut 14,000 jobs, slash spending

MELBOURNE/SYDNEY (Reuters) - Global miner Rio Tinto , saddled with nearly $40 billion in net debt, said it would cut 13 percent of its workforce, slash capital spending by more than half and sell more assets as it battles a collapse in commodity prices.
Source: Reuters: Business News | 10 Dec 2008 | 12:55 pm

Wall Street looks to open higher (AP)

AP - Wall Street grew more optimistic Wednesday that Congress will approve a $15 billion bailout for U.S. automakers, a move aimed at saving jobs and preventing another sharp downdraft in the economy.

Source: Yahoo! News: Stock Markets News | 10 Dec 2008 | 12:54 pm

Oversight panel questions Treasury on bailout plan (AP)

AP - With a skeptical tone, a congressional panel reviewing the government's $700 billion rescue package for the financial sector is questioning the Bush administration's spending of bailout funds and challenging its reluctance to use the money to reduce foreclosures.

Source: Yahoo! News: Business | 10 Dec 2008 | 12:43 pm

More Good News From Forecasters, S&P At 400

James Tobin won the Noble prize for economic in 1969. By his measurement of the stock market, the S&P has a very long way to drop. Keep in mind that there are nuts everywhere making predictions.

According to Bloomberg, Tobin’s Q ratio, which compares the market value of companies to the cost of their constituent parts, indicates the Standard & Poor’s 500 Index is still too expensive relative to the cost of replacing assets. While the 39 percent drop in the S&P this year pushed equity prices below replacement cost, history suggests the ratio must sink further as deflation sets in. The S&P may plunge another 55 percent to a trough of 400 by 2014.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 12:41 pm

Oil up $2 after overnight slump

LONDON (Reuters) - Oil recovered more than $2 a barrel to rise above $44 on Wednesday after an overnight slump by 4 percent on grim forecasts of lower U.S. demand.
Source: Reuters: Business News | 10 Dec 2008 | 12:33 pm

Stocks ready to bounce up

Wall Street appeared ready to bounce up Wednesday, after a solid loss the day before, amid indications of progress toward a $15 billion bailout of the U.S. auto industry and job cuts from Yahoo and Electronic Arts.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 12:33 pm

Yahoo workers will learn of layoffs Wednesday: source

SAN FRANCISCO (Reuters) - Yahoo Inc will tell 1,500 employees on Wednesday they are losing their jobs, after announcing in October that layoffs would occur by year's end, a person familiar with the situation said on Tuesday.
Source: Reuters: Business News | 10 Dec 2008 | 12:32 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 12:31 pm

Miner Rio Tinto cuts 14,000 jobs

The world's third-largest mining firm, Rio Tinto, is cutting 14,000 jobs as part of plans to reduce its debt by $10bn.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 12:29 pm

Rio Tinto to cut 14,000 jobs, slash spending (Reuters)

Reuters - Global miner Rio Tinto , saddled with nearly $40 billion in net debt, said it would cut 13 percent of its workforce, slash capital spending by more than half and sell more assets as it battles a collapse in commodity prices.

Source: Yahoo! News: Business | 10 Dec 2008 | 12:28 pm

Best of the best: 26 top companies

Which companies were on the most Fortune lists this year? These 26 are the cream of the crop.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 12:25 pm

Indications: Auto-bailout progress lifts U.S. stock-index futures

U.S. stock-index futures pointed to a higher open for Wall Street on Wednesday, boosted by progress toward a bailout program for troubled automakers.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 12:25 pm

European stocks lower as investors book profits (AP)

AP - European stock markets were lower Wednesday as investors cashed in on two days of robust gains and digested grim economic and corporate news. Relief that U.S. lawmakers are close to a rescue deal for carmakers limited losses and helped Asian shares close higher.

Source: Yahoo! News: Stock Markets News | 10 Dec 2008 | 12:20 pm

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

Among the companies whose shares are expected to see active trade in Wednesday's session are ADC Telecom, Agrium, Eastman Kodak, Electronic Arts, Pall, Rio Tinto and Sony.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 12:19 pm

London Markets: Miner Rio Tinto stands out in weaker FTSE 100

Miners shone in London on Wednesday, as Rio Tinto shares shoot up more than 10% after it says it will cut jobs and costs, with gains from the sector helping to limit broader market losses.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 12:19 pm

Obama's January agenda

Considering the work ahead, it's likely that the fabled first 100 days of a new presidency will be highly compressed for President-elect Obama and the new Congress.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 12:18 pm

Rio Tinto slashes 14,000 jobs

The global miner, saddled with almost $40bn in net debt, announced plans to cut capital spending, slash jobs and boost asset sales but said it would hold its dividend steady
Source: Financial Times - US homepage | 10 Dec 2008 | 12:17 pm

Bailout efforts lacking - Oversight board

The Treasury Department must do more to rescue struggling homeowners and ensure that the money it's using to bail out banks is working, according to a draft report by a congressional oversight panel released Wednesday.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 12:17 pm

China to spur slowing economy, European data bleak

LONDON (Reuters) - China pledged fresh measures to revitalize its economy on Wednesday after exports tumbled and domestic demand shrank, with bleak figures from Europe showing how badly its major economies were faring.
Source: Reuters: Business News | 10 Dec 2008 | 12:13 pm

Bailout plan could soon face House vote

WASHINGTON (Reuters) - The House of Representatives could vote as early as Wednesday on a $15 billion plan to bail out and restructure U.S. automakers but the initiative may face possible roadblocks in the Senate, officials said.
Source: Reuters: Business News | 10 Dec 2008 | 12:13 pm

The Global Recession Gets Official: China Exports Fall

If there has been one constant in the global economy since the beginning of the decade it is that China's GDP and exports have kept moving up. There has been an almost endless demand for the inexpensive goods made in the world's most populated country. For exports to move down sharply would means that worldwide consumer consumption and confidence has fallen into a deep hole.

According to MarketWatch, "China's exports declined in November, the first such contraction in more than seven years, underscoring the severity of the global slowdown, and painting a bleak outlook for the sustainability of mainland exports in the months ahead."

The bad news is a two-edged sword. China's rapidly growing middle class has been at the core of the nation's imports. If its export figures are shrinking, so are production, and, eventually, employment. The second great engine of China's GDP growth, consumption of good made "in country" by workers who have moved from rural areas into cities, has begun to collapse.

The next sign of really bad news out of China is likely to be a particularly sharp drop in GDP.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 12:08 pm

Black gold fever

Canada's giant oil sands industry faces testing times
Source: BBC News | Business | World Edition | 10 Dec 2008 | 12:07 pm

Europe Markets: Rio Tinto shares shine in modestly lower Europe

Rio Tinto shares climb after announcing jobs cuts, cost cutting plans. Stocks in Europe move modestly lower.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 12:05 pm

Mortgage applications fell 7.1% last week: MBA

A further drop in interest rates charged on fixed-rate mortgages last week helps keep the volume of applicants seeking to refinance their mortgages near highs reported for Thanksgiving week, the Mortgage Bankers Association says.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 12:01 pm

Economic slowdown 'worsening'

The UK economy contracted 1% from September to November, the National Institute of Economic and Social Research calculates.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 12:00 pm

Shares collapse at TV shopping channel

Shares in Ideal Shopping Direct, the home shopping specialist, collapsed by two thirds this morning after the company issued its third profit warning in the space of three months and hired KPMG to review its internal accounting processes.
Source: Latest Business News from Times Online | 10 Dec 2008 | 11:59 am

Fuwei Films Announces Results of its 2008 Annual Shareholders Meeting

BEIJING, Dec. 10 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co. Limited (Nasdaq: FFHL) ("Fuwei" or the "Company"), a manufacturer and ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:52 am

Sterling hits new record euro low

The British pound falls to a new record low against the euro amid a grim outlook for the UK economy.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 11:50 am

Marston's defies credit crunch with £400m debt renewal

Marston's, the brewer and pub operator, has defied the credit crunch by extending a £400 million debt facility by three years until August 2013.
Source: Latest Business News from Times Online | 10 Dec 2008 | 11:50 am

AIG owes Wall Street $10B - report

Struggling insurance giant America International Group owes Wall Street firms $10 billion from trades that went sour, according to sources cited by The Wall Street Journal.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 11:44 am

Chaotic offices

In pictures, your jumbled 'creative work spaces'
Source: BBC News | Business | World Edition | 10 Dec 2008 | 11:42 am

Shorts Attack The Banks Again, But Flee Bailout Targets And Retailers

No matter how far down bank stocks go and how hard regulators try to keep short sellers out of financial shares, some of the smart money is willing to gamble that the fortunes of the sector will get worse.

As of the end of November, short piled into Citigroup (C) driving up shares short by 44% to 182.5 million. In Bank of America (BAC) short interest rose 20% to 110 million shares. Short interest in Ambac (ABK) moved up 26% to 60.8 million. Shares sold short in US Bancorp (USB) and Colonial (CNB) were both up over 20%. The short interest in Morgan Stanley (MS) was also up almost 20%.

Surprisingly, short sellers left shares in the large, troubled industrial companies alone. Shares short in GM (GM) fell 2% to 113.1 million. The short interest in Ford (F) dropped 5% to 251.4 million.

Shorts were also unwilling to bet against large retailers. Share short in Wal-Mart (WMT) were down 2% to 48.8 million. Shares sold short in Target (TGT) dropped 9% to 47.4 million.

Short sellers were also willing to hold large positions in tech companies. The short interest in Oracle (ORCL) was up 19%. Shares short in Yahoo! (YHOO) were up 24%. Shares sold short also rose at Microsoft (MSFT), Intel (INTC), Cisco (CSCO), Symantec (SYMC), Sun (JAVA), and Ebay (EBAY) all rose.

Where did the shorts run away and hide? Apple (AAPL), Starbucks (SBUX), and Procter & Gamble (PG). Seems that having a strong brand is valuable after all.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 11:36 am

Nortel's (NT) woes spell trouble for Alcatel-Lucent (ALU) and Motorola (MOT)

Source: 24/7 Wall St. | 10 Dec 2008 | 11:32 am

Deflaton risk hits China as exports tumble

China started the year with pledges to battle inflation as enemy number one of its economy but it ends the period struggling to stave off deflation as the global financial crisis has hit hard.
Source: Latest Business News from Times Online | 10 Dec 2008 | 11:30 am

Wall Street seen opening higher as Fed budget eyed

(Reuters) - Stock index futures pointed to a higher opening on Wednesday, as optimism for government fiscal packages overshadowed weak corporate outlooks which had pressured Wall Street in the previous session, sending the main indexes down over 2 percent.
Source: Reuters: Business News | 10 Dec 2008 | 11:30 am

SKF slashing 6% of workforce

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 11:20 am

Bank offers loans to end sit-in

Bank of America offers to extend loans to pay severance pay and holiday pay to workers conducting a sit-in at an Illinois factory.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 11:16 am

China's exports fall for first time in seven years

China's exports decline in November, the first such contraction in more than seven years, underscoring the severity of the global slowdown, and painting a bleak outlook for the sustainability of mainland exports in the months ahead.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 11:16 am

The Specter Of Eight Million Foreclosures

Trying to guess how many homes will be lost to foreclosure over the next several years is a fool's game. No one knows what will happen to employment. The role that the federal government will play in refinancing and buying mortgages is ill-defined.

The change in administrations in Washington may mean a change in the entire approach taken by Washington agencies which could do something to change the tide of housing prices.

According to MarketWatch, "Credit Suisse's fixed-income research team forecast that 8.1 million mortgages will be in foreclosure over the next four years, representing 16% of all mortgages."

The number is numbing and trying to cope with what it would do to the broader economy is almost beyond imagination.

There are about 120 households in the US. Fifty-five million of those are owner-occupied homes. If the forecast of eight million foreclosures is correct, 15% of all homes would be thrown into the system, almost all of them without buyers.

Some parts of the US would become ghost towns, especially the older industrial cities like Detroit. The tax base in those areas would be cut by a huge percentage. It is hard to imagine how municipalities hit that hard will be able to operate without federal assistance. States which already have severe housing problems, particularly California and Florida, would require outside support as well.

If the housing crisis is accelerating as rapidly as it appears to be, the notion of the federal government buying home, which has been suggested by some of the more radical economists. may be less expensive that trying to bailout scores of cities and states.

One thing is certain now. The federal government's mandate to salvage the economy will have to go well beyond saving banks and creating jobs. The root of the most severe part of the problem are much deeper than that.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 11:15 am

Ames True Temper Reports Fourth Quarter Results

Fourth Quarter Net Sales increase approximately 11.8% vs. prior year CAMP HILL, Pa., Dec. 10 /PRNewswire-FirstCall/ -- ATT Holding Co., parent of Ames True Temper,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:15 am

Wall Street seen opening higher as Fed budget eyed (Reuters)

Reuters - Stock index futures pointed to a higher opening on Wednesday, as optimism for government fiscal packages overshadowed weak corporate outlooks which had pressured Wall Street in the previous session, sending the main indexes down over 2 percent.

Source: Yahoo! News: Stock Markets News | 10 Dec 2008 | 11:13 am

TransUnion.com Quarterly Credit Card Analysis Reveals That National Credit Card Debt Increases While Delinquency Rate Changes Direction and Heads Upward

CHICAGO, Dec. 10 /PRNewswire/ -- href="http://www.transunion.com">TransUnion.com released today the results of its analysis of trends in the credit card lending industry...
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:09 am

Ford says no comment on reported Volvo sale to Changan

SHANGHAI (Reuters) - Ford Motor said on Wednesday it was still evaluating an option to sell its Volvo car unit but declined to comment on a local media report which named its China partner Changan Automobile Group as a potential buyer.
Source: Reuters: Business News | 10 Dec 2008 | 11:08 am

The Stupidity Of Attacking Paulson

The board that Congress appointed to take on the job of keeping track of how Henry Paulson was spending his bailout fund is about to make its first report. That may determine whether Treasury gets the second $350 billion of the total $700 billion which was approved.

Paulson is likely to be slapped around. He did change the rules once or twice. Those toxic asset he was going to take off the balance sheets of big banks never got bought.

According to The Wall Street Journal, "The panel overseeing the Treasury Department's $700 billion financial-rescue fund is expected to release a report Wednesday that is highly critical of the government's handling of the bailout."

At the top of the list of Paulson's "mistakes" is his reluctance to use more of the capital to help prevent home foreclosures. Looking at that problem, renegotiating or paying off most of those mortgages would take months. The mountain of paperwork would be immense. The process would require contacting hundreds of thousands of people and hundreds of banks. Auditing the system would require an army of mortgage experts.

Paulson did what he thought was best with the capital. He did his best to save the US banking system. While much of what was done was ham-handedly, the fact that there has been no major bank failure is some testament to the efficacy of Paulson's plan. Did he get enough equity in the banks he helped? Did he make a mistake by making all the big banks take equal amounts of money when some where more needy than others? Yes, on both accounts.

The Treasury was asked to staunch the bleeding in they system and believed that it only has a few weeks to accomplish that.Given that other national governments have taken a remarkably similar approach, Paulson's decisions at least have the support of "experts" who took the same approach.

Paulson could have gone down any one of a number of paths. He took the one which he believed would do the most to keep the economy from collapsing with the credit markets. It has worked, at least well enough.

He should get some credit for that.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 11:00 am

Grubb & Ellis Stockholders Re-Elect Board of Directors' Nominees at 2008 Annual Meeting

Inspector of Elections' Preliminary Report Confirms that All of Dissident's Candidates and Bylaw Proposals Were Defeated SANTA ANA, Calif., Dec. 10...
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:00 am

Jaspersoft Secures $12.5 Million in Venture Funding

Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:00 am

Local Business Owners Choose BizFilings for Incorporation

Business incorporation services leader BizFilings has been selected for the 2008 Madison Award in the Business Services category by the U.S. Local Business Association (USLBA). ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:00 am

Pinnacle's Silver Coin Continues to Grow with Latest Drilling Results, Including 54.87 Meters Grading 4.45 grams per ton Gold at Northern Limit of Current Drill Program

VANCOUVER, Dec. 10 /PRNewswire-FirstCall/ - Management of Pinnacle Mines Ltd. (TSX-V:PNL; FSE:07M) (the "Company") are pleased to announce the latest drill results from
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 11:00 am

Currencies: Dollar mixed, weighed down by auto bailout prospects

The U.S. dollar was mixed versus major rivals Wednesday, weighed down slightly by progress toward a $15 billion federal bailout for the nation’s auto industry.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 10:58 am

German research group sees GDP down 2.0 pct in '09

Germany's economic output will fall sharply in 2009 as the effects of the financial crisis deepen, an economic research group forecast Wednesday. The Rhineland-Westphalia Institute for...
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 10:51 am

Kingfisher founder mulls Woolworths bid

Sir Geoff Mulcahy, the former chief executive of Woolworths, is mulling a bid to take over more than half of the struggling retailer’s high street stores.
Source: Latest Business News from Times Online | 10 Dec 2008 | 10:49 am

Equities - The Bull Case

LONDON, December 10 /PRNewswire/ -- Despite the current market volatility Chris Watling at Longview Economics said today he remains positive on the outlook for equities.
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 10:38 am

UPDATE 1-Economic crisis will not delay Total 2009 projects

PARIS, Dec 10 (Reuters) - The global economic crisis will not delay projects by French oil major Total SA due to start production in 2009, its exploration and production head said on Wednesday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 10 Dec 2008 | 10:31 am

How to Survive This Year’s Holiday Party (with or without free booze)

Now that I work for myself, I’m dependent on my husband’s company for the Christmas party. And this year, it almost got canceled. Luckily it’s still on, but as part of the cutbacks - no drink tickets!

If you’re in the same boat, don’t despair. A cocktail or two can go a long way toward loosening up a diverse group of colleagues and their spouses or dates, but those same libations can also rob you of your better judgment, which you might need to make appropriate conversation. 

Steer Clear of Touchy Subjects

When it comes to chatting up people you don’t know well or haven’t seen in a while, be wary of asking about the following:

• What does your husband/wife do? They may not have one.
• Didn’t you have a baby? Weren’t you pregnant?
• How’s your job at ABC Corp?
• What are you doing for Christmas? Believe it or not, everyone doesn’t celebrate Christmas.

It’s best to ask open-ended questions. You can then use the answers to probe deeper. This is easier said than done, but you’ll do better if you concentrate on making an effort to talk to people. (It’s a lot easier to focus if you lay off the cash bar!)

Try these:

• What’s your favorite thing about the holidays?
• How does this time of year affect your work?
• What’s new with your family since last we spoke?
• Do you have plans for the holidays?
• Did you get to do any traveling this year?

And when someone asks you a question, try to give them something to work with. Or, if they ask  you something that requires only a yes or no answer, turn it around into an opportunity for conversation.

Prepare to Talk Small

Small talk is easier when you get the other person talking and they’re more likely to do that when they feel good. Say something nice, even if it’s obvious. Complimenting someone’s attire, title, or minor accomplishment can get the conversation going. And remember to try and find something interesting about everything.

Before a party, try to come up with a few standby topics for the evening. Do yourself a favor by making it something you’re actually interested in. I’ve been getting plenty of mileage out of the stray dog I took in. Almost everyone has a story about an animal in distress or an adopted pet. To go the extra mile, if you know you’ll be seeing certain people and you have time, refresh yourself on their interests.

No matter how you accomplish it, once you get people talking, you can sit back and relax. And if you’re lucky, one of your new friends may buy you a drink!

Image Credit: Jacob Botter, Flickr

Source: Business Pundit | 10 Dec 2008 | 10:30 am

Staff sent home from Nissan plant

Workers at Nissan in Sunderland are sent home as production is suspended because of the economic downturn.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 10:14 am

Asia Markets: Rate-cut and stimulus hopes sustain stock rally

Asian markets shot higher Wednesday, as expectations of interest-rate cuts and economic-stimulus measures forced bearish investors to reverse bets that the downtrend in stocks will continue.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 10:07 am

Pound sinks to record low as euro nears parity

The pound has fallen to a record low against the euro this morning, nearing parity with sterling, as fears about the strength of the British economy gathered pace.
Source: Latest Business News from Times Online | 10 Dec 2008 | 10:01 am

SKF to shed 2,500 jobs as demand from auto industry slumps

Swedish engineering group SKF says Wednesday that it will shed around 2,500 jobs and reduce the working hours for many more employees after a slump in demand from the automotive sector.

Source: MarketWatch.com - Top Stories | 10 Dec 2008 | 9:51 am

Electronic Arts warns on profits

Video game giant Electronic Arts issues another profit warning after holiday sales fall short of expectations.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 9:48 am

Chinese exports fall as slowdown bites

Chinese exports fell in November from a year earlier in the first monthly drop in almost seven years as consumer demand in the rest of the world plummeted in the face of the global economic crisis
Source: Financial Times - US homepage | 10 Dec 2008 | 9:47 am

Europe mixed, Asia ends higher

European stock markets opened mixed Wednesday after a day of gains in Asia, where Hong Kong's Hang Seng index closed with a gain of more than 5%.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 9:46 am

Hong Kong stocks rally 5.6 percent (AP)

AP - Hong Kong stocks rallied 5.6 percent Wednesday as investors anticipated new measures to spur China's economy from a high-level economic meeting in Beijing.
Source: Yahoo! News: Stock Markets News | 10 Dec 2008 | 9:41 am

Cosalt holds urgent talks over Ross's future

The board of Cosalt, the marine safety equipment specialist, is holding urgent meetings to discuss the future of David Ross, the Tory donor embroiled in a shares scandal that has already prompted his resignation from Carphone Warehouse, National Express and as Boris Johnson’s senior Olympics adviser.
Source: Latest Business News from Times Online | 10 Dec 2008 | 9:39 am

China shares rise amid regional gains (AP)

AP - Chinese stocks rose Wednesday amid regional gains, led by banks after regulators announced they will be allowed to finance mergers and acquisitions.
Source: Yahoo! News: Stock Markets News | 10 Dec 2008 | 9:30 am

Ladbrokes hires former 02 boss as chairman

Ladbrokes has appointed Peter Erskine, the former chief executive of O2, as its new chairman.
Source: Latest Business News from Times Online | 10 Dec 2008 | 9:26 am

Nortel explores bankruptcy, government aid scenarios: report

(Reuters) - Nortel Networks Corp has sought legal advice to study a bankruptcy protection scenario in the event that its restructuring plan fails and has also been exploring potential assistance from the Canadian government, the Wall Street Journal reported.
Source: Reuters: Business News | 10 Dec 2008 | 9:22 am

Nortel explores bankruptcy, government aid scenarios: report (Reuters)

Reuters - Nortel Networks Corp has sought legal advice to study a bankruptcy protection scenario in the event that its restructuring plan fails and has also been exploring potential assistance from the Canadian government, the Wall Street Journal reported.

Source: Yahoo! News: Business | 10 Dec 2008 | 9:22 am

The risk of high dividends

Question: I just turned 60. My husband and I had about $40,000 in our 401(k) invested in the market and just lost half of it. We live in a very depressed part of the country - Michigan - no work. So we were invested in "aggressive income" stocks - big mistake, but we needed the dividends to live on. This is all the money we have, so do we reinvest or what?
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 9:07 am

Should you jump into stocks now?

Has there ever been a time that feels worse than now to talk about houses and stocks? Not in my 40 years of writing about business. The sickening collapses in house and stock prices from their peaks have trimmed about $13 trillion - almost a year's output for the entire U.S. economy - from Americans' net worth.
Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 9:03 am

Congress to vote on car bail-out

The US House of Representatives may vote on the $15bn (£10bn) bail-out of the car industry as soon as Wednesday.
Source: BBC News | Business | World Edition | 10 Dec 2008 | 8:31 am

Media Digest 12/10/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, the House will vote on the auto bailout as early as this week.

Reuters writes that Rio Tinto (RTP) will cut 14,000 jobs.

Reuters reports that AIG (AIG) owes other firms $10 billion for soured trades.

Reuters reports that a panel appointed by Congress will be critical on how the Paulson bailout money has been used.

Reuters reports the shares in Sony (SNE) dropped after its set its restructuring plan.

Reuters writes that newspaper chains McClatchy (MNI) and New York Times (NYT) said they have a rough years ahead.

Reuters reports that the Fed is considering issuing its own debt to raise money.

Reuters said that allies of GM (GM) CEO Wagoner are lobbying to keep him in place.

Reuters reports that Yahoo! (YHOO) workers will probably learn of layoffs today.

The Wall Street Journal reports that Nortel (NT) is consulting bankruptcy counsel.

The Wall Street Journal reports that EA (ERTS) warned of weak holiday sales.

The Wall Street Journal reports that Merck (MRK) will develop biotech generics.

The Wall Street Journal reports that Intel (INTC) will move ahead with its new tiny circuitry.

The Wall Street Journal reports that AOL (TWX) will launch its new social network product.

The Wall Street Journal reports that the NFL will cut jobs.

The Wall Street Journal reports that the Treasury sold four week notes with a coupon of zero.

The Wall Street Journal reports that Tribune's Chapter 11 shows risks of ESOPs.

The Wall Street Journal reports that investors are buying shares in companies that they feel will survive.

The Wall Street Journal reports that Wyndham will cut 4,000 jobs.

The Wall Street Journal reports that M&A fees have fallen sharply.

The Wall Street Journal reports that China is urging airlines to cut plane orders.

The Wall Street Journal reports that airlines losses are expected to improve on lower oil prices.

The Wall Street Journal reports that New York Times (NYT) is working to improve liquidity.

The New York Times reports that the World Bank expects a global recession which will drop world trade for the first time since 1982.

The New York Times reports that the biotech industry is looking for tax breaks.

The New York Times reports "A former Fannie Mae executive testified that Fannie and Freddie Mac engaged in “an orgy of junk mortgage development” that turned the mortgage giants into vast repositories of risky loans."

The New York Times reports that Wal-Mart (WMT) will pay $54 million to settle a suit over wages.

The FT reports that the global demand for oil is expected to plummet.

The FT reports that a drop in US clothing sales has caused a huge slump for providers.

The FT reports that VW may seek aid for its financial arm.

The FT reports that pending home sales fell less than expected.

Bloomberg reports that "the biggest slump in U.S. consumer spending since 1942 will extend the recession and push the jobless rate to the highest level in a quarter century, according to economists surveyed by Bloomberg News."

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 8:29 am

Air Tahiti Nui is the little airline that can

Well-regarded Air Tahiti Nui is keeping its five jets flying by offering specials to weather the downturn. A favorite...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Sony to cut 8,000 jobs amid global downturn

The consumer electronics giant says it will also close five or six plants, including one in France, as demand plunges and the strong yen hampers exports. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Pending home sales drop slightly in October

Pending U.S. home sales fell only slightly in October, despite a spate of bad economic news and turmoil in the stock markets, the National Assn. of Realtors reported Tuesday.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Plan to aid credit unions hurt by mortgage losses

The $40 billion will help institutions that had mortgage losses. Federal regulators said Tuesday that they were...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Merck plots course in biotech, emerging markets

The drug maker tells analysts it plans to become a leader in generic versions of biotech medicines. Drug maker...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Stocks decline after 2-day rally

NEW YORK -- Wall Street turned cautious today after a two-day rally and as downbeat corporate news reminded investors that the economy's troubles won't soon ease. The Dow Jones industrials fell 225 points,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Hello Leno, goodbye scripted shows?

The NBC late-night host's move to 10 p.m. may be a further sign that the days of producing expensive hourlong dramas are numbered. It also may mean fewer Hollywood jobs. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Electronic Arts says it'll miss fiscal-year targets, plans deeper job cuts

The world's largest game publisher, expecting disappointing holiday sales, says it will cancel some projects as well as reduce its workforce by more than the 6% announced in October. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Stocks tumble as firms scale down profit forecasts

Companies including FedEx issue disappointing projections. The Dow loses 242 points, and broader indexes also fall, ending a two-day rally. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Economic recovery not seen until 2010, Chapman University forecast says

Job losses will continue to mount as consumers cut back on spending, prolonging a deep U.S. recession, report says. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 10 Dec 2008 | 8:00 am

Asia Markets 12/10/2008

Markets in Asia were sharply higher.

The Nikkei was up 3.2% to 8,660.

The Hang Seng rose 4.6% to 15,427.

The Shanghai Composite was higher by 2% to 2,079.

Data from Reuters.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Dec 2008 | 7:58 am

Fed mulls issuing own debt: report

(Reuters) - The U.S. Federal Reserve is considering issuing its own debt for the first time, the Wall Street Journal said, citing people familiar with the matter.
Source: Reuters: Business News | 10 Dec 2008 | 7:52 am

Fed mulls issuing own debt: report (Reuters)

Reuters - The U.S. Federal Reserve is considering issuing its own debt for the first time, the Wall Street Journal said, citing people familiar with the matter.

Source: Yahoo! News: Business | 10 Dec 2008 | 7:52 am

AIG owes $10 billion for soured trades: report

NEW YORK (Reuters) - American International Group, once the world's largest insurer, owes around $10 billion to other financial services firms for trades that have gone sour, the Wall Street Journal reported in its online edition on Tuesday.
Source: Reuters: Business News | 10 Dec 2008 | 7:36 am

Australian stocks: Market closes slightly up

MELBOURNE - The Australian share market closed around one per cent higher, with a stronger resources sector helping to offset falls in major bank stocks caused by capital raisings. At 1615 AEDT, the benchmark S&P/ASX200 index was...
Source: New Zealand Herald - Business | 10 Dec 2008 | 7:24 am

Rio Tinto axes 14,000 jobs to reduce debt pile

Rio Tinto, the Anglo-Australian mining giant, today announced that it will cut 14,000 jobs in an attempt to reduce its $39 billion ($£26.2 billion) debt mountain.
Source: Latest Business News from Times Online | 10 Dec 2008 | 7:20 am

AIG owes $10 billion for soured trades: report (Reuters)

Reuters - American International Group , once the world's largest insurer, owes around $10 billion to other financial services firms for trades that have gone sour, the Wall Street Journal reported in its online edition on Tuesday.

Source: Yahoo! News: Business | 10 Dec 2008 | 6:31 am

NZ stocks: Market eases on lacklustre session

The New Zealand sharemarket eased today but its performance was seen as a relatively good effort given that United States stocks fell overnight. The NZSX-50 index closed down 13.162 points, or 0.483 per cent, at 2711.549 and was...
Source: New Zealand Herald - Business | 10 Dec 2008 | 6:30 am

Bailout plan could soon face House vote (Reuters)

Reuters - The House of Representatives could vote as early as Wednesday on a $15 billion plan to bail out and restructure U.S. automakers but the initiative may face possible roadblocks in the Senate, officials said.

Source: Yahoo! News: Business | 10 Dec 2008 | 5:57 am

Currency: Dollar rises after bouncy night

The New Zealand dollar posted gains today after bouncing around on Tuesday night. It ended its domestic session at US54.75c, up from US54.05c at 8am and US54.16c at 5pm yesterday. In its overnight session the NZ dollar came...
Source: New Zealand Herald - Business | 10 Dec 2008 | 5:38 am

Pequot's Puzzling Payments

Documents filed in a Connecticut divorce case disclose that Pequot Capital Management C.E.O. Arthur J. Samberg or his hedge fund is making so-far unexplained payments of $2.1 million to a former Microsoft employee who figured in a now-closed insider-trading investigation of Samberg.

The Securities and Exchange Commission closed its investigation of Samberg in 2006 without filing any charges, although the Senate Judiciary Committee a year later faulted the S.E.C. for the way it conducted the investigation and allegations that a related case had been influenced by politics.

Records obtained from Connecticut Superior Court in Stamford show that Samberg or his firm has paid the former employee, David Zilkha, $1.4 million in two equal installments since April 30, 2007, and has promised an additional $700,000 in April 2009.

Zilkha’s lawyer and a Samberg spokesman declined to explain the payments or to answer any questions from Conde Nast Portfolio about them, and so far neither Zilkha nor Samberg have provided an explanation in court.

The Senate Judiciary Committee has obtained the documents from the divorce case and is monitoring developments in court to see if there is any evidence that the payments to Zilkha are related to the insider-trading investigation.

In a 2007 report, the Judiciary Committee and the Finance Committee criticized the S.E.C.'s investigation of suspicions that Samberg had inside information when he made particularly profitable trades in several companies' securities.

One part of the S.E.C. investigation centered on suspicion that Zilkha had given Samberg insider information about Microsoft which he used to make a quick $12 million profit in April 2001, according to commission records.

A separate facet of the S.E.C. investigation looked into whether Morgan Stanley C.E.O. John Mack had fed inside information to Samberg about a planned General Electric acquisition of Heller Financial, a lender to businesses. Samberg's hedge fund had bought Heller shares and shorted G.E. stock in advance of the announcement, and made $18 million on the trading, the S.E.C. said.

The Mack aspect of the case hit the headlines because the S.E.C. fired the government lawyer investigating the allegations, Gary Aguirre. Aguirre claimed he was fired for insisting on subpoenaing Mack, a move which he said higher-ups at the S.E.C. overruled because of Mack’s connections and political clout.

The S.E.C. denied that, but a joint investigation by the Senate judiciary and finance committees in August 2007 sided with Aguirre and sharply faulted the S.E.C. for failing to pursue the case, including the evidence concerning involving Zilkha and Samberg’s Microsoft trading.

In a report issued in October 2008, the S.E.C.’s own inspector general recommended disciplining senior S.E.C. officials for their handling of the case. A month later, however, an S.E.C. administrative law judge ruled against any disciplinary measures.

The trading investigated in the case occurred in 2001. Zilkha had been working as a product manager at Microsoft when Samberg that year offered him a job as an analyst of technology stocks at Pequot.

Records made public in the investigation show that in February 2001, in the same e-mail in which he offered Zilkha a job, Samberg pressed him for information about Microsoft. Zilkha then was still employed by Microsoft. The e-mail said "might as well pick your brain before you go on the payroll!!"

 On April 6, 2001, Samberg in an e-mail pressed Zilkha for any “tidbits” about Microsoft. Zilkha responded the next day that he would get back to Samberg “ASAP.”

Three days later, Samberg, who had been betting that Microsoft's stock would go down, reversed course and began amassing 30,000 Microsoft options in a bet the stock would go up, according to S.E.C. records from the case.

On April 17, Zilkha reported in an e-mail to Samberg that Microsoft's chief financial officer had been unusually upbeat in advance of the company’s pending quarterly earnings announcement. The e-mail appears in S.E.C. files.

Microsoft announced its earnings on April 19, beating analysts’ expectations. The stock rose, and a day later Samberg closed out his positions, reaping that $12 million profit. That day, Samberg e-mailed Zilkha that "I shouldn’t say this, but you probably have paid for yourself already," investigators found.

Samberg fired Zilkha months later in 2001, after Zilkha's contacts inside Microsoft evidently had stopped talking to him, according to records from the S.E.C. investigation.

After that, Zilkha had no known personal or financial dealings with Samberg or Pequot.

S.E.C. records made public in the case show that at one point in the investigation the S.E.C. enforcement division, which can only file civil lawsuits, had brought its evidence to the Federal Bureau of Investigation and federal prosecutors, in an attempt to interest them in opening a criminal investigation.

No charges were ever filed, although F.B.I. agents did interview Zilkha, according to a 2006 S.E.C. memo written just before the investigation concluded. After talking to him alone, the F.B.I. joined with the S.E.C. and the U.S. Attorney’s office to grant Zilkha limited immunity from prosecution and jointly questioned him under oath.

The S.E.C. memo and other records, though, show that investigators considered the information Zilkha gave them to be of little use. “Zilkha proffered that he had obtained information from Microsoft employees and provided it to Samberg, but did not believe the information was either material or confidential,” the memo said.

Samberg, when he was questioned by the S.E.C. in 2006, testified that he couldn’t remember why he had made the Microsoft trades, but denied that he had received any inside information on Microsoft.

Information about the recent payments by Samberg or Pequot to Zilkha surfaced in a long-running, fiercely contested divorce case between Zilkha and his former wife, Karen. Their marriage was dissolved in 2005, but Zilkha was required to continue filing regular financial statements with the court.

One of those statements show that in January 2008, Zilkha for the first time disclosed that he had received payments totaling $1.4 million, and expected to receive an additional $700,000 in 2009.

Karen Zilkha's lawyers moved to question both David Zilkha and Samberg under oath, to find out if an agreement to pay the money had been made before the divorce was made final.

 Court records show that Samberg and Zilkha recently filed separate motions asking the judge in the divorce case to seal—that is, keep from being disclosed publicly—any testimony they will give about the payments.

In one motion, David Zilkha's lawyer asserted that "any release of this confidential information would potentially cause irreparable financial harm to the defendant [Zilkha]."

In a separate motions, Samberg’s lawyers asserted that sealing information about payments to Zilkha is "necessary to protect Pequot’s private financial information and business affairs."

A hearing on the motions is set for Dec 22.

The payments are curious because Zilkha isn't known to have filed any court claim against Samberg or Pequot. People familiar with the case said it's possible that Zilkha believes he was unfairly fired from Pequot in 2001 and the payments were in response to a request for compensation. But so far it isn’t clear why any such payments would be deferred until six years after he had left the firm.

Jonathan Gasthalter, a spokesman for Samberg, said he wouldn’t have any comment on the payments. Norman Pattis, a Connecticut lawyer representing Zilkha in the divorce case, said "I don’t know anything about it" and hung up when Portfolio called him for comment. He didn’t respond to subsequent e-mail and phone messages.

Telephone numbers listed for Zilkha reached recordings saying the numbers aren’t in service, and efforts to locate Zilkha for comment weren’t successful. In 2006, Henry Putzell III, a lawyer who had represented Zilkha in the S.E.C. investigation, was quoted as saying that "David Zilkha never obtained and did not communicate any material, nonpublic information, nor did he attempt to do so."

An S.E.C. spokesman said the agency had no comment on whether it was aware of the payments to Zilkha. Related Links
Nasty Splitter
Microsoft and the "Pg Up/Pg Dn" Patent Squabble
Microsoft Opens the Vault


Source: Portfolio.com: Top 5 | 10 Dec 2008 | 5:30 am

Shopping Takes a Holiday

"I haven't started my holiday shopping yet this year," says Judy Malloy of Levittown, Pennsylvania, visiting Times Square on a brisk December day. "Usually I'm done by now, but this year it's too hard. I'm holding back. I'm looking for sales."

Early estimates indicate that Malloy is not alone: Many Americans appear to be holding off on their holiday shopping in hopes that the best bargains are yet to come.  More disturbing for retailers is that when many of them do start shopping, they will be buying less than in years past.

Sales at stores open at least a year fell 2.7 percent in November from a year ago, according to the International Council of Shopping Centers' index of 37 stores. It was the biggest drop since the council began collecting data in 1969.

The only silver lining in the gloomy picture has been the discount chains, like Wal-Mart Stores, Costco, and BJ's Wholesale Club, which have picked up traffic as more and more Americans look to economize.

With the economy in a recession and people fearful about their jobs, it is not surprising that the best-selling product categories for November and December are expected to be necessities like food and toiletries, according to the TNS Retail Forward forecast.

For everything else, the reason some product categories will attract more interest than others this holiday season will be the depth of the discount.

"To be honest, everything takes a back seat to price this year, so it really could be any product category that turns out to be the winner this season," says Kathy Grannis, a spokeswoman for the National Retail Federation. "Every category is facing challenges because consumers have cut back and are so budget conscious."

Jeff Klinefelter, a retailing analyst with Piper Jaffray, agrees.

"There are pockets of strength in certain electronics, but really the strength is in the discount channel, with Wal-Mart and dollar stores driving volume at low prices and most other retailers experiencing declines," he says.

Retailers have been doing everything in their power to produce discounts that are capable of drumming up consumer interest. They have their work cut out for them. The TNS Retail Forward forecast predicts only tepid gains of 3 percent or more for toys, games, and consumer electronics. But apparel sales are expected to be flat, while sales in home furnishings are forecast to shrink significantly from a year ago.

Sellers of teens' and women's apparel like Ann Taylor, Nordstrom, and Limited Brands were more promotional around Black Friday this year than last. On the Friday following Thanksgiving this year, Ann Taylor was offering 20 percent off all merchandise before noon, compared with 15 percent off before 11 a.m. last year. At Gap, sweaters were buy one, get one free. Not only were women's and teens' apparel retailers sending out more promotional emails to consumers in November, but the number of featured offers per email was up 32 percent from last year.

Even with the heavy discounts and promotions, comparable sales at department stores fell 13.3 percent in November, according to the International Council Of Shopping Centers. Sales at specialty apparel chains were off 10.4 percent, and teen retailers saw sales drop 14.8 percent.

There are few bright spots in apparel. Klinefelter at Piper Jaffray, however, says that he expects that the high-end Ugg brand of boots will defy weakness in the footwear sector for another year running. And Kathy Grannis cites anecdotal evidence that women's outerwear performed better than expected after Thanksgiving.

While the electronics category overall seems to be performing better than apparel so far, it has not fared as well as in previous holiday seasons.

In a note earlier this month, Mitchell Kaiser, an analyst with Piper Jaffray, reported anecdotal observations that TVs and P.C.'s have been selling strongly, but G.P.S. systems, MP3 players, and Blu-Ray devices so far have not been the big sellers that some predicted.

Videogame sales have been down overall, with consumers skipping over less well-known games and sticking to popular titles like Rock Band, Guitar Hero, and Fallout 3, which continue to sell briskly.

"My son got three videogames last year for his Xbox," says Jim Marsden from Fayetteville, Arkansas, outside a Toys 'R Us store in Manhattan. "This year he's getting one. He doesn't know it yet, but he's just getting one."

Although videogames as a whole are suffering, so far Nintendo's Wii gaming system has been the closest thing to a "must-have" product for the holiday season. Nintendo's president has said that Wii sales more than doubled to about 800,000 units during the week of Thanksgiving, up from about 350,000 units a year earlier.

The category almost certain to flop this holiday season? Gift cards, which never go on sale and are therefore less attractive to shoppers in a bargain-hunting frame of mind.

The National Retail Federation is predicting gift-card sales of $24.92 billion this season, down 5 percent from last year's projection. Piper Jaffray says feedback from merchants after Black Friday suggested lackluster sales so far.

Related Links
The Gym Arcade
Shall We Call it Cyber Friday?
Advice to Over-40 Crowd: Start Playing Videogames


Source: Portfolio.com: Top 5 | 10 Dec 2008 | 5:00 am

Start cutting your prices, Bollard tells companies

Power companies, oil companies, local councils and banks have all been given the hard word by Reserve Bank Governor Alan Bollard who says that there is room for new price cuts. In a speech given today, Bollard warned that "all...
Source: New Zealand Herald - Business | 10 Dec 2008 | 4:30 am

ING NZ looks to wind down two credit-crisis hit funds

ING New Zealand wants to wind up two suspended funds that invested in US credit markets, and is lending the funds $100 million so they can give the 8000 investors affected some cash upfront. In March, ING announced it was suspending...
Source: New Zealand Herald - Business | 10 Dec 2008 | 4:00 am

US carmaker bailout negotiations near close

The White House hailed an agreement with Congressional Democrats on measures it says will lead to a dramatically restructured and financially viable US car industry, as negotiations between the Bush administration and Capitol Hill on a $15bn emergency loan for Detroit neared their close
Source: Financial Times - US homepage | 10 Dec 2008 | 3:33 am

Buffett bets on mattresses

Source: Business and financial news - CNNMoney.com | 10 Dec 2008 | 3:33 am

Costly imports hurt Terms of Trade figures

The sharpest quarterly rise in import prices in nearly quarter of a century, partly due to a steep increases in crude oil, saw New Zealand's terms of trade drop 2.3 per cent in the September quarter. Import prices rose 11.1 per...
Source: New Zealand Herald - Business | 10 Dec 2008 | 3:30 am

Investors swap bum shares for sunny island trips

SAN JUAN, Puerto Rico - A Caribbean hotelier is offering investors stressed out by the financial meltdown a chance to swap their sinking stocks for sun-drenched beach vacations. Between now and Jan. 31, Elite Island Resorts is...
Source: New Zealand Herald - Business | 10 Dec 2008 | 3:00 am

55 ABC Learning centres to close

The receivers of collapsed Australian child care group ABC Learning have announced that 55 centres are to close, and around 100 staff are likely to lose their jobs. At a media conference in Brisbane, Chris Honey of McGrathNichol,...
Source: New Zealand Herald - Business | 10 Dec 2008 | 3:00 am

Mary Holm: Changes fairer for most KiwiSavers

KiwiSaver will be fairer under yesterday's new rules than it would have been under either National's earlier proposed changes or under Labour's version of KiwiSaver. Compared with National's pre-election proposals, yesterday's...
Source: New Zealand Herald - Business | 10 Dec 2008 | 2:30 am

Illinois governor arrested

The governor of Barack Obama's home state of Illinois was arrested on a raft of federal corruption charges that included an alleged conspiracy to sell the president-elect's vacant Senate seat for cash – or favours from Mr Obama himself.
Source: Financial Times - US homepage | 10 Dec 2008 | 2:13 am

Condom maker Durex asks for sex toy testers

With the recession and global financial crisis summer jobs can be hard to come by, but gainful unemployment can still be had - product testing a new sex toy. No payment was involved but successful applicants for the 100 "sexexcutive"...
Source: New Zealand Herald - Business | 10 Dec 2008 | 2:07 am

Business Briefs - Tuesday

Kroger beats, warns on Q4 profit. The grocery giant said its Q3 EPS rose 5.4% to 39 cents ex items, beating views by a penny. Sales rose 8.9% to...

Source: Investor's Business Daily: BUSINESS | 10 Dec 2008 | 12:22 am

For-Profit School Chain Helps Low-Wage Workers Climb Job Ladder

It's not the college fantasy of your average suburban teenager. There's no sprawling green campus. No dorms. No gym. Classes are four or five...

Source: Investor's Business Daily: BUSINESS | 10 Dec 2008 | 12:22 am

Trends & Innovations - Tuesday

Video games not just child's play

Source: Investor's Business Daily: BUSINESS | 10 Dec 2008 | 12:22 am

After The Close - Tuesday

ELECTRONIC ARTS (ERTS), a video game maker, warned it won't meet its '09 EPS guidance of $1.00-$1.40. Analysts had expected $1.16. It tumbled 10%.

Source: Investor's Business Daily: BUSINESS | 10 Dec 2008 | 12:22 am

In Brief - Tuesday

Vail Resorts (MTN), a ski resort operator, posted a Q1 loss of 93 cents, a dime worse than views. Revenue gained 56% to $152.8 mil, above...

Source: Investor's Business Daily: BUSINESS | 10 Dec 2008 | 12:22 am

New York Times considers asset sale

The New York Times Company (NYTC) has confirmed that it plans to raise $225 million from a sale and leaseback of its Manhattan headquarters.$
Source: Latest Business News from Times Online | 10 Dec 2008 | 12:02 am

Queen's economy drive at palaces...despite cut in maintenance grant

The Queen has had to adopt stringent cost-cutting measures across the royal palaces, including reducing the Royal Household's electricity consumption by 7 per cent since last year, in the face of a maintenance grant that has not increased for ten years.
Source: Latest Business News from Times Online | 10 Dec 2008 | 12:01 am

AutoZone posts lower fiscal 1st-quarter profit (AP)

AP - Auto parts retailer AutoZone Inc. said Tuesday its fiscal first-quarter profit fell slightly as cash-strapped consumers put off some vehicle maintenance, but the auto parts retailer still managed to post a profit ahead of Wall Street expectations.
Source: Yahoo! News: Business | 9 Dec 2008 | 11:55 pm

2008's big buzzword in giving: Micro

Philanthropy consultant Lucy Bernholz tells Kai Ryssdal that the trend this year in giving is taking big ideas and making them small.
Source: Marketplace | 9 Dec 2008 | 11:39 pm

Interest rate on US T-bills turns negative

Nervous investors paid for the privilege of owning US government debt, pushing interest rates on three-month Treasury bills to negative levels for the first time in postwar history
Source: Financial Times - US homepage | 9 Dec 2008 | 11:27 pm

Author Forsyth Sees Milton as `A Great Defender of Liberty'

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 10:58 pm

Regulators unveil new aid plan for credit unions (AP)

AP - Federal regulators said Tuesday they are making more than $40 billion available to support several credit unions that suffered losses from mortgage securities, and will provide another $2 billion to help struggling homeowners.
Source: Yahoo! News: Business | 9 Dec 2008 | 10:52 pm

Richmond Fed’s Mackell Says Jobless Rate May Exceed 9%

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 10:45 pm

Dean Barber Remains Cautious of Volatility in Financial ETFs

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 10:27 pm

Wall Street fails to extend global stock rally (AFP)

AFP - Wall Street shares fell hard Tuesday as investors locked in recent gains, while European stock markets extended their rally to a second day on better-than-expected German economic data.

Source: Yahoo! News: Stock Markets News | 9 Dec 2008 | 10:17 pm

Hear: Money For Nothing

Big news today for the economy: The interest rate on a four-week Treasury bill went to zero (some say it went even lower). That means people were so frightened of putting their money into other investments that they are now willing to lend to the U.S. government money for no interest at all. They just want someplace safe.

And don't we all. Welcome to the second day of our look at the big consequences of small decisions. Today on Planet Money:

-- Ian Shepherdson, of High Frequency Economics, says this recession looks like no other downturn, at any time in history or place on the globe. Must be time to experiment.

-- Lately Noel Paterson has changed his ways. Paterson, who works for Microsoft in Washington State, switched from buying TV and game consoles in stores and started picking them up on Craigslist instead. His pre-Christmas shopping has given him a particular glimpse of the recession as it's lived out there.

Download the podcast; or subscribe. Intro music: Nirvana's version of "The Man Who Sold the World." Find us: Twitter/ Facebook/ Flickr.

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 10:14 pm

More Recession Carnage For Video Games (ERTS, ATVI, GME, THQI, TTWO)

Source: 24/7 Wall St. | 9 Dec 2008 | 10:11 pm

Online Video: 15 Billion Views And Not A Dime Of Profit? (GOOG)(MSFT)(NWS)(VIA)(YHOO)

Source: 24/7 Wall St. | 9 Dec 2008 | 10:00 pm

VIX Index of U.S. Stock Option Prices Advances 0.7% to 58.91

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 9:59 pm

Bloomberg's Sutton Reviews Brooklyn Pizza Restaurant Motorina

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 9:48 pm

Illycaffe Chairman Says May Be Costs Cut, Slow Growth in 2009

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 9:46 pm

Letters: Cars, health care and Santa

Listeners respond to the proposed bailout of the auto industry, one of our guests' comments on health care, and whether Santa Claus is real.
Source: Marketplace | 9 Dec 2008 | 9:42 pm

Saving homes through mass appeal

At Mary Immaculate Parish in Pacoima, Calif., dozens of parishioners are at risk of losing their homes. Father John Lasseigne's been trying to help them by organizing them to negotiate with their banks. He talks with Kai Ryssdal.
Source: Marketplace | 9 Dec 2008 | 9:41 pm

Credit unions getting federal help too

Federal regulators will make billions in new loans available to help so-called "corporate" credit unions, which pool money from retail credit unions and invest it. Now those investments aren't looking so good. Mitchell Hartman reports.
Source: Marketplace | 9 Dec 2008 | 9:41 pm

Personal bankruptcies seen mounting

It seems like every day brings news of more layoffs. Which got us wondering -- when will personal bankruptcies start catching up with the commercial ones? Alisa Roth reports.
Source: Marketplace | 9 Dec 2008 | 9:41 pm

Charities face slow season of giving

Charitable organizations depending on the generosity of others may find themselves with less handouts this year. With so many Americans struggling to make ends meet, there's less money to give. Organizations are preparing for the worst. Jaime Bedrin reports.
Source: Marketplace | 9 Dec 2008 | 9:31 pm

Fuel efficiency enters bailout debate

Haggling over a $15 billion government rescue of the American automobile industry continues in Washington. One of the issues still being debated is how much fuel efficiency should be imposed on carmakers. John Dimsdale reports.
Source: Marketplace | 9 Dec 2008 | 9:31 pm

Morici, Motor Trend's Mackenzie Talk Labor Costs of Automakers

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 9:21 pm

What Bernanke Did This Weekend

He bought a pair of earrings and a necklace for his wife.

How do I know this? I was taking a break from economics, shopping at a "Holiday Art Mart" organized by these guys, when I ran into Gayla Lee.

Gayla makes glass jewelry, and she had just come from another show at St. John's College in Annapolis. A woman had walked up to her table. They talked for a bit. The woman picked out some earrings and a necklace. Then the woman's husband handed over his credit card.

"Usually I ask for people to write their phone number on the receipt," Gayla says. Then she looked at the name and saw it read: Ben Bernanke.

And then she noticed the security guard with the squiggly ear piece.

"I decided I didn't need to ask for his phone number," she says.

Bernanke's daughter goes to St. John's.

If you want to buy your sweetie the same thing the man who can print money buys for his, here's Gayla's website.

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 9:15 pm

Sherrill Says Global Auto Sales `Still Accelerating Downward'

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 9:10 pm

MKM's Darda Sees `Tough Sledding' for U.S. Stocks in Early 2009

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 8:57 pm

NYT eyes asset sales

The New York Times is eyeing potential asset sales and is in discussions with lenders as it girds itself for sharply curtailed advertising spending across the media sector in 2009
Source: Financial Times - US homepage | 9 Dec 2008 | 8:43 pm

The Web’s Top 10 Layoff Sites

Having trouble keeping track of the zillions of layoffs hitting the economy every day? So are we. Luckily, the ten resourceful sites below–many recently created–will give you up-to-the-minute headlines, rumors, and tweets about the grave state of the employed world:

1. It Died: Editor Glenn Fleishman describes this new hit as “keeping track of hosted services as they lay dying.” The blog does exactly that, potentially protecting people with precious goods in those services from rude discoveries. The commentary is also good.

2. F*ckedStartups: Reminiscent of the dot-com era’s fabled F*edCompany.com, this snarky blog covers rumors, insider tips, and companies MIA as well as standard layoffs.

3. The Wired.com Tech Layoff Tracker: Real-time headlines, plus a comprehensive tally make this one of the Web’s best go-to resources.

4. TechCrunch’s Deadpool : This oldie-but-goodie covers key tech demises as well as product deaths, such as Google’s Lively.

4. The Media is Dying (Twitter feed): A self-explanatory, handy feed.

5. Timely Demise: This blog covers retailers, parts suppliers, and other terminally ill companies that sell tangible stuff.

6. Layoff Blog: Useful, newsy, mainstream coverage.

7. Screwdd: Very readable media headline and blog coverage. Lots of quoted material, aggregated into a one-stop shop.

9. ClickZ’s Digital Marketing Layoff Tracker: This complete chart covers the digital ad-driven niche. Wait…isn’t that our niche?

10. Layoff News: This blog has been covering major layoff headlines since October of this year.

Source: Business Pundit | 9 Dec 2008 | 8:35 pm

World's Biggest Mattress

WASHINGTON (AP) - Interest rates on four-week Treasury bills fell to zero Tuesday, as investors still sought the safety of government securities without any return on their investment.

That kind of says it all.

Investors are scared and feel the U.S. government is THE safest place to keep their money. That means lots of competition to buy the Treasury bills (bonds), which pushes the price up. Up so high, that in this case the government doesn't have to offer to pay any interest to get people to buy them.

Our editor here points out that back in 1981, if you lent the government money for three months' you'd get paid 14% interest.

Rest of the story after the jump.

The Treasury Department said it sold $30 billion in four-week bills at an interest rate of zero percent. That meant investors were willing to earn no return at all on their money as long as they could park it in the safety of Treasury securities.

The rate was down from an interest rate of 0.04 percent at last week's government auction of four-week bills.

The zero interest rate for the four-week bills was an all-time low dating back to July 2001 when the government began issuing them.

Reflecting high demand, the amount in bids for the four-week bills was four times the amount sold at the auction.

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 8:34 pm

El-Erian Sees 'Unintended Consequences' From Policy Makers

Source: Bloomberg - All Podcasts | 9 Dec 2008 | 8:22 pm

Global demand for oil to plummet

Global oil demand will collapse next year and commodities will not return to the highs they reached this summer in the foreseeable future, two reports said
Source: Financial Times - US homepage | 9 Dec 2008 | 8:09 pm

NFL To Lay Off 150

America's most utterly gigantic sports machine is cutting league workers -- not team staffs -- by 14 percent. If the National Bureau of Economic Research hadn't already declared that we're in a recession, I'd say this news would just about do it.

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 7:52 pm

VW tries to tap bank bail-out fund

Europe's largest carmaker to seek aid from Germany's €500bn state-backed banking rescue plan
Source: Financial Times - US homepage | 9 Dec 2008 | 7:33 pm

US clothing slump hits shipments

The slump in US clothing sales since the summer has led to a precipitous drop in the number of overseas factories shipping to the US, import documents show
Source: Financial Times - US homepage | 9 Dec 2008 | 7:12 pm

States Cut Down on Jury Trials

The state of New Hampshire has come up a novel way to save money -- suspending jury trials. The New York Times reports:

John Broderick, the state's chief justice, said suspending trials was essential to avoid layoffs in the judicial system, which has already cut $2.7 million from its budget.The measure will save about $73,000, the monthly amount spent on stipends for jurors.

The Granite State isn't alone: "Vermont is closing its district and family courthouses a half day per week for the rest of the fiscal year to save $300,000." What's next?

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 6:59 pm

Illinois governor arrested for corruption

Illinois Gov. Rod Blagojevich was arrested on charges of fraud and bribery. He allegedly conspired to sell President-elect Barack Obama's Senate seat for kickbacks. Jeremy Hobson reports.
Source: Marketplace | 9 Dec 2008 | 6:35 pm

Ill. Gov.: 'I Want To Make Money'

Illinois Gov. Rod Blagojevich speaks to the media after visiting with workers occupying the Republic Windows and Doors factory on Dec. 8, 2008, in Chicago.

Scott Olson/Getty Images

 

This week, we've been looking at your responses to the tough economy, and the economy's responses to your choices. The hardship, as you've been telling us, is everywhere. Even in the indictment against Illinois Gov. Rod Blagojevich, we hear hints of the recession.

NPR's Ken Rudin took a quick look at the charges against Blagojevich, who's accused of trying to sell President-elect Barack Obama's Senate seat, and unearthed this:

The governor and his family were "financially" hurting, the wiretaps revealed. Said the gov: "I want to make money."

"Yikes," Rudin writes. You can say that again.

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 6:33 pm

Stocks up on predicted US auto plan (AFP)

AFP - The FTSE 100 index of shares rallied on Tuesday on the back of a predicted auto rescue plan for the big three US automakers and a surprise rise in German investor confidence.

Source: Yahoo! News: Stock Markets News | 9 Dec 2008 | 6:07 pm

Open Thread: Cheaper Mortgages

The website Seeking Alpha today takes on the question of whether lowering mortgage rates would help stabilize home prices and thus the economy. Short answer: Maybe.

Meanwhile, a listener named Tevya writes:

You said last week that a lower interest rate (say, 4.5%) would make you seriously consider buying a house. I hear everywhere that low interest rates are good for home buyers, but I think the reverse is true. Lower interest rates don't really "get me more house for my money," they actually end up driving the prices higher (or sustaining the already inflated prices) because all the potential buyers have access to these lower rates. Then, when the interest rates eventually go back up (which they will have to do to prevent hyper-inflation) the value of my home will come back down to earth and I'll suddenly be stuck in my house with negative equity.

I'd much rather buy a house when interest rates are high and prices are low, than sell it when interest rates are low again and make a tidy profit. An additional benefit of this scenario is that any savings, inheritance, or extra income that comes my way will pay off a higher percentage of the mortgage, thereby earning me equity faster. Am I missing something, or does everyone else have things upside down?

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 5:30 pm

Pending home sales down slightly in October (AP)

AP - Pending U.S. home sales fell slightly in October, despite a spate of bad economic news and turmoil in the stock markets, the National Association of Realtors reported Tuesday.
Source: Yahoo! News: Business | 9 Dec 2008 | 4:45 pm

Pending home sales down slightly in October (AP)

AP - Pending U.S. home sales fell slightly in October, despite a spate of bad economic news and turmoil in the stock markets, the National Association of Realtors reported Tuesday.
Source: Yahoo! News: Stock Markets News | 9 Dec 2008 | 4:45 pm

New data show glimmer of hope for US housing

A gauge of future home sales remained steady in October, a sign that the stricken US housing market could be stabilising
Source: Financial Times - US homepage | 9 Dec 2008 | 4:03 pm

No Gingerbread House This Year

Source: Business Pundit | 9 Dec 2008 | 3:00 pm

China tea party crashed by end to investment frenzy (Reuters)

Reuters - Those nursing losses in their stock portfolios should spare a thought for Chinese investors who piled into the tea market in one of the more frenzied and bizarre speculative bubbles last year.
Source: Yahoo! News: Stock Markets News | 9 Dec 2008 | 2:57 pm

Headlines From A Recession

Morning, everyone. Those of you who've been asking about the "uptick rule," pay particular attention to the second headline. The rest of you, bad news starts at the top and continues after the jump.

From the Financial Times: World's hungry "close to one billion".

From the Wall Street Journal: Charles R. Schwab calls for return of uptick rule.

From the New York Times: Washington takes risks with its auto bailout plans.

From Bloomberg: Sony will cut 16,000 jobs as recession curbs demand.

From the Miami Herald: Bad economy helping Web-scammers recruit "mules".

From the LA Times: Wastepaper market in the dumps/ Tribune Co. files for Chapter 11 bankruptcy protection.

From the New York Times: Times company to borrow against building.

From the Indianapolis Star: Lost auto sales have cost local governments $60 million.

From the Louisville Courier-Journal: School board members find cuts "hard to take".

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Source: NPR Blogs: Planet Money | 9 Dec 2008 | 2:51 pm

After The Crisis: A Parody of 15 Corporate Logos

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