More Analyst Calls (MT, ASML, FSLR, PALM, SBUX, RIMM)

Source: 24/7 Wall St. | 19 Dec 2008 | 1:34 pm

Oil prices tumble to near five-year low

Oil prices tumbled near to a five-year low, trading below $35 a barrel, as the market doubted that Opec would deliver the full 2.2m b/d output cut promised this week and fresh concerns about the global economy
Source: Financial Times - US homepage | 19 Dec 2008 | 1:32 pm

Carmax posts loss

(Reuters) - Carmax Inc on Friday reported third-quarter sales fell 23 percent to $1.46 billion.
Source: Reuters: Business News | 19 Dec 2008 | 1:31 pm

Stock futures lower with automakers still in limbo (AP)

AP - Wall Street headed for a modestly lower open Friday as investors nervously awaited the fate of the U.S. automaking industry — one of the nation's biggest employers.

Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 1:27 pm

Chuck Jaffe: Nothing but trouble in store for investors in this retail REIT

When a stock gets badly beaten down, but has some attractive assets and a big yield, investors have to decide if they want to stick around waiting for a bounce-back.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 1:26 pm

Stock futures trim losses, autos announcement due (Reuters)

Reuters - Stock index futures trimmed losses on Friday, and the S&P 500 futures briefly turned positive after news that President George W. Bush will make an announcement on a rescue plan for ailing automakers at 9 a.m..

Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 1:25 pm

Stock futures trim losses, autos announcement due

NEW YORK (Reuters) - Stock index futures trimmed losses on Friday, and the S&P 500 futures briefly turned positive after news that President George W. Bush will make an announcement on a rescue plan for ailing automakers at 9 a.m..
Source: Reuters: Business News | 19 Dec 2008 | 1:25 pm

Stock futures trim losses, autos announcement due (Reuters)

Reuters - Stock index futures trimmed losses on Friday, and the S&P 500 futures briefly turned positive after news that President George W. Bush will make an announcement on a rescue plan for ailing automakers at 9 a.m..

Source: Yahoo! News: Business | 19 Dec 2008 | 1:25 pm

RIM's forecast tops estimates, earnings climb

Research In Motion Ltd. sees its earnings climb 7% in its fiscal third quarter, and the company surprises investors with a better-than-expected forecast for the current period stemming from strong demand for new BlackBerry devices, such as the touch-screen Storm.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 1:24 pm

WiMax: Not dead yet

For the last couple years, depending on who you asked, WiMax was either bound for spectacular success or it was dead on arrival.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 1:21 pm

Bush to make announcement on autos (Reuters)

Reuters - President George W. Bush will make an announcement about a rescue plan for the ailing U.S. automakers at 9 a.m. EST on Friday, the White House said.

Source: Yahoo! News: Business | 19 Dec 2008 | 1:21 pm

Bush to make announcement on autos

WASHINGTON (Reuters) - President George W. Bush will make an announcement about a rescue plan for the ailing U.S. automakers at 9 a.m. EST on Friday, the White House said.
Source: Reuters: Business News | 19 Dec 2008 | 1:21 pm

Stocks headed for a slump

Stock futures pointed to a lower start for trading as investors anticipated a bailout decision for the automobile industry and prepared for market volatility caused by the quadruple witching day on Wall Street.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 1:21 pm

Oil producers, users call for oil price stability

LONDON (Reuters) - The world's biggest oil producers and consumers called on Friday for cooperation to increase stability in oil prices to help guarantee future energy supplies.
Source: Reuters: Business News | 19 Dec 2008 | 1:21 pm

Madoff: Who really cares?

Multi-billion-dollar Ponzi schemes don't happen every day. Yet, investors have mostly shrugged off the allegations that Wall Street powerhouse Bernard Madoff ripped off clients to the tune of $50 billion.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 1:19 pm

FTSE 100 down 102.71 at 4,227.95 (AP)

AP - Share prices on the London Stock Exchange were lower at midday Friday.
Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 1:14 pm

Obama's big bang

It is widely considered to be a foregone conclusion. The government will commit a breathtaking amount of money -- as much as $1 trillion may be required, some say -- on an economic recovery package over at least the next two years.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 1:09 pm

FM to be tuned out in favour of digital by 2017

FM radio should be switched off by 2017, forcing listeners to buy digital sets, a Government-backed body of industry experts is expected to conclude today.
Source: Latest Business News from Times Online | 19 Dec 2008 | 1:02 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 | 19 Dec 2008 | 1:01 pm

Brinker International Announces Completion of Romano's Macaroni Grill(R) Sale

DALLAS, Dec. 19 /PRNewswire-FirstCall/ -- Yesterday, Brinker International, Inc. (NYSE: EAT) and Mac Acquisition LLC, an affiliate of San Francisco-based Golden Gate Capital,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 1:00 pm

Dyer Beech and Eric A. Rice Work Day and Night to Clean this Housing Mess Up

Former Foreclosure Hunter Turned Loss Mitigation Expert Eric Rice Sheds Light on Distressed Homeowners SAN DIEGO, Dec. 19 /PRNewswire/ -- Foreclosures have hit an
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 1:00 pm

Indications: Stock futures slip as investors await auto industry rescue

U.S. stock market futures point to a third straight session of losses Friday as investors wait for news of a bailout for the auto industry, while oil prices continue to edge lower as demand worries outweigh the recent production cut.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 1:00 pm

Bank of America Charitable Foundation Responds to Increase in Demand for Emergency Food by Committing $1 Million to Feeding America - The Nation's Largest Hunger Relief Organization

Grant Responds to Growing Need of Nation's Food Banks Underscored by Troubling Results of Recent Survey CHICAGO, Dec. 19 /PRNewswire-USNewswire/ - Feeding...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 1:00 pm

Consumer Reports: Nine Tips for Last-Minute Holiday Shoppers

Tightwad Tod Marks Shares Shopping Tips for Those Who Haven't Finished (Or Started) Their Holiday Shopping YONKERS, N.Y., Dec. 19 /PRNewswire-USNewswire/ --...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 1:00 pm

Aero Financial Expands Executive Team in Sri Lanka

SAN DIEGO, Dec. 19 /PRNewswire/ -- Aero Financial announced today that the company has expanded its executive team in Sri Lanka with the appointment of both Gowri Shankar and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 1:00 pm

London Markets: Shares in London fall as oil producers, miners hammered

Shares in London fall, with oil majors declining sharply as crude oil futures continue to hover around multi-year lows.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 12:54 pm

Movers & Shakers: Movers & Shakers: Oracle, Research in Motion, Weyerhaeuser

Stocks expected to move significantly in Friday’s trading include Oracle Corp., Research in Motion Ltd. and Weyerhaeuser Co.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 12:53 pm

Weyerhaeuser slashes dividend on earnings warning

NEW YORK (MarketWatch) -- Weyerhaeuser Co. said it’s reducing its quarterly dividend to 25 cents a share from 60 cents a share and cutting costs to counteract a business slowdown.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 12:50 pm

Top Analyst Upgrades & Downgrades (BKD, SNH, AMZN, AAUK, CENX, EBAY, PRGS)

These are some of the top pre-market analyst upgrades and downgrades we have seen from Wall Street this Friday morning with more than two hours until the market opens:

• Brookdale Senior Living (NYSE: BKD) Started as Outperform at Oppenheimer.
• Senior Housing (NYSE: SNH) Started as Outperform at Baird.
• Amazon.com (NASDAQ: AMZN) Cut to Market Perform at Bernstein.
• Anglo American (NASDAQ: AAUK) Cut to neutral at UBS.
• Century Aluminum (NASDAQ: CENX) Cut to Market Perform at FBR.
• eBay (NASDAQ: EBAY) Cut to Market Perform at Bernstein.
• Progress Software (NASDAQ: PRGS) Cut to Hold at Needham.

Jon C. Ogg
December 19, 2008

Source: 24/7 Wall St. | 19 Dec 2008 | 12:27 pm

Spanish rush for £2.1 billion 'Fat One' lottery

Encarnacion Ramirez spent half an hour queuing on a freezing morning before she got her chance to buy a ticket for Spain’s biggest lottery, El Gordo (The Fat One).
Source: Latest Business News from Times Online | 19 Dec 2008 | 12:26 pm

Biggest Global Economic Shock Since World War II

LONDON, December 19 /PRNewswire/ -- 2009 will see the first global contraction since the end of World War II according to Robin Bew, Editorial Director and Chief...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 12:21 pm

GM and Chrysler seen near loan deal

DETROIT/WASHINGTON (Reuters) - General Motors Corp and Chrysler are close to securing emergency loans as part of a U.S. government aid package that would demand sweeping restructuring at the troubled automakers, according to sources familiar with the talks.
Source: Reuters: Business News | 19 Dec 2008 | 12:18 pm

Standard & Poor's cuts view on 12 major U.S., European firms

Credit rating agency Standard & Poor’s cut its rating or outlook on 12 major U.S. and European financial institutions Friday, saying the move reflected its view of a deepening global economic slowdown.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 12:11 pm

'Sensitivity' pledge on bank jobs

The newly appointed Scotland boss of the merged Lloyds bank says a sensitive approach will be taken to future staffing.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 12:10 pm

Europe Markets: Shares in Europe fall as oil majors slide; Anglo Irish Bank drops

Shares decline in Europe on Friday for the third time in five sessions, as oil majors lose more ground and Anglo Irish Bank shares fall sharply.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 12:05 pm

Oil drops below $34 to lowest level in almost 5 years

LONDON (Reuters) - Oil fell below $34 on Friday to its lowest level in almost five years as the global economic slowdown overshadowed OPEC's record supply cuts.
Source: Reuters: Business News | 19 Dec 2008 | 12:04 pm

Japanese consumers enjoy benefits of strong yen

Supermarkets are having "strong yen sales" on imported food. Travel agencies are offering discounted trips abroad. Ordinary people are playing the currency market. The yen's recent surge
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 12:02 pm

Irish bank leader quits over his huge hidden loans

The chairman of Ireland's embattled Anglo-Irish Bank Corp. has resigned after investigators discovered he had hidden from shareholders euro87 million ($125 million) in personal loans from...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 12:01 pm

EU clears Allianz to buy Commerzbank unit

EU regulators on Friday cleared German insurer Allianz SE to buy Commerzbank's asset management unit. The move was part of a larger deal in which Commerzbank will in turn buy Dresdner...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 12:00 pm

CFOs See Sweeping Business Cuts to Continue Into 2009

- Nearly 40% of Respondents Expect Further Layoffs in the New Year - - More Than 1/3 Have Plans to Reduce Bonuses Firm-wide - FLORHAM PARK, N.J. and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Dec 2008 | 12:00 pm

Posted Without Comment: S&P Cuts Every Bank In The Universe

According to MarketWatch, "Standard & Poor's cut the credit rating or outlook of 12 major U.S. and European financial institutions Friday, saying the move reflected its view of the significant pressure on large, complex financial institutions' future performance as the global economy slows further. S&P added it is raising its overall assessment of bank industry risk and said it believes there will be more volatility in funding markets. The parent firm or banking subsidiaries of Bank of America (BAC), Barclays (BCS), Citigroup (C), Credit Suisee (CS), Duetsche Bank (DB), Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), Royal Bank of Scotland (RBS), UBS (UBS), and Wells Fargo (WFC).were all downgraded one or two notches while HSBC (HBC) has its outlook cut to negative, but its credit rating unchanged."

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 11:54 am

Cheap Oil And The Russian Revolution

The sitting government in Russia has not had this much fun since Vladimir Lenin died.

Falling oil prices, now sitting well under $40 a barrel. are forcing the Russian government to shut down almost every non-essential program it has in the works. The billionaires who bribe Putin's people are felling poor. A regime without kickbacks is a regime without power.

The sharp drop in oil has moved Putin from being a man who could invade his neighbors at will and carry on war games with Chavez in Venezuela to a fellow who is fighting to keep his job.

According to The Wall Street Journal, "The drop in oil prices is eroding the Kremlin's ability to replenish its gold and foreign-currency reserves just when it needs them most." The ruble is falling as fast as the popularity of the government.

Russians like to take to the street from time-to-time in a attempt to overthrow those seated in the Kremlin. It is a sort of blood sport filled with vodka and killings. But, it has a way of bringing about reform even if the new bosses look the same as the old ones.

There is a great deal of irony in the fact that the one global economic event which could help pull China, the EU, and US out of a deep recession--a sharp drop in the cost of energy--could cost the Russians a significant part of their power base. Oil is no longer good currency for holding adversaries hostage.

A big recession is like that. Fortunes can turn the wrong way in an instant. Putin never saw it coming.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 11:50 am

General Growth puts more high-end malls on sale

(Reuters) - Mall giant General Growth Properties Inc has put three of its high-end shopping malls -- in Boston, New York, and Baltimore -- up for sale as it moves to pay off about $22 billion of debt within four years.
Source: Reuters: Business News | 19 Dec 2008 | 11:48 am

European stocks down ahead of expected US sell-off (AP)

AP - European stock markets fell Friday after a mixed performance in Asia, as lower oil prices hit heavyweight energy stocks, particularly in Britain, and expectations of another drop on Wall Street weighed on investor sentiment.

Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 11:44 am

Japan forecasts no growth in 2009

Japan forecasts zero growth for the next fiscal year as the Bank of Japan cuts interest rates to only 0.1%.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 11:40 am

Carmakers should be given state aid says CBI

The Government must step in to provide financial support for the ailing car industry, the Confederation of British Industry's (CBI) director general urged today.
Source: Latest Business News from Times Online | 19 Dec 2008 | 11:39 am

John Lewis pins hopes on pre-Christmas flourish

Sales at John Lewis, the department store and bellwether of high street trading, failed to improve last week after sales fell by 6 per cent.
Source: Latest Business News from Times Online | 19 Dec 2008 | 11:33 am

More Talk Of An "Orderly" Bankruptcy At GM (GM)

The Bush White House let it leak out yesterday that it was looking at Chapter 11 as a possible way to deal with GM (GM).

The news is an acknowledgment that suppliers, creditors, and the UAW are not likely to agree to negotiate their rights away once they see GM get a government check. Why give up anything when there may be more money to spread around in the near future?

The Administration took another swing that the Chapter 11 issue. According to the AP, Henry Paulson asked "If the right outcome is reorganization or bankruptcy, then isn't it better to get there through an orderly process?"

Since Paulson runs the financial end of the federal government without any input from Bush and is likely to be the "car czar" until a permanent one is appointed, his opinion should carry more weight than anyone else's.

Paulson is a shrewd negotiator. He did not get to be CEO of Goldman Sachs (GS) by being a buffoon. Around the corner, the Treasury Secretary can see that the parties who leech off the car companies are not going to go away quietly. They are going to have to have their greed beaten out of them, which is something a bankruptcy judge can do with ease.

Bush will give GM and Chrysler money to last until March. That is just long enough for the auto executives to hang themselves by coming up with inadequate restructuring plans that are not likely to take into account the fact that the domestic vehicle market will be worse in 2009. Over the next three months, government accountants can dig though the borrowing structure of the companies, their supplier bills, and all the UAW contracts. They can determine how low the cost structure of GM can go.

And, then when spring comes, they can turn that information over to a bankruptcy judge.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 11:27 am

BOJ cuts key rate, plans to buy corporate debt

The Bank of Japan cut its key interest rate to 0.1% from 0.3% Friday, marking its second rate reduction this year in the wake of worsening economic indicators and increasing pressure from the government to do more to help the economy.

Source: MarketWatch.com - Top Stories | 19 Dec 2008 | 11:26 am

UK businesses cut back investment

UK business investment falls by more than expected in the third quarter, according to the Office for National Statistics.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 11:17 am

Fed OKs credit card crackdown

Cash-strapped consumers got some welcome news on Thursday when regulators voted to rein in controversial credit card practices.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 11:16 am

Why investors don't need Macworld

Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 11:15 am

Strong dollar hurts Oracle

Software vendor Oracle blamed the currency impact of a strengthening U.S. dollar for a decline in its second-quarter earnings, reported Thursday. While sales rose against the year-ago quarter, they came up short of analysts' expectations.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 11:14 am

The Mark-To-Market Horse Race

Source: 24/7 Wall St. | 19 Dec 2008 | 11:11 am

Dead hedge funds: 693 and counting

A record number of hedge funds went bust during the third quarter, a report showed Thursday, as shaky markets and tight credit drove investors away from risky investments.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 11:09 am

Failed banks for sale...who's buying?

More banks will certainly fail in the months ahead, but at least regulators shouldn't have any trouble finding buyers.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 11:02 am

Good news when this bubble pops

The next bubble is here...but this is one many people want to see popped.
Source: Business and financial news - CNNMoney.com | 19 Dec 2008 | 10:50 am

GMAC bank bid may fail: report

(Reuters) - Bond fund Pacific Investment Management (Pimco) has turned down a debt-exchange offer from GMAC LLC, threatening the auto and mortgage finance company's bid to qualify for U.S. government funds, the Wall Street Journal reported.
Source: Reuters: Business News | 19 Dec 2008 | 10:48 am

French business morale at new low

French business confidence falls to its lowest level on record, according to national statistics office INSEE.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 10:44 am

Just When They Need The Money, The Government Hacks Credit Card Firms (MA)(C)

Just when credit card issuers from Mastercard (MA) to Citigroup (C) need the extra money due to deadbeats, the federal government is going to make it hard for them to get it. Default rates are rising with unemployment and the distributors of the plastic are faced with billions of dollars of write-offs over the next year or so.

The only option these companies have had was to jack interest rates through the roof and bleed the cardholders for as long as they could. Regulators now have dropped bricks on the heads of the card issuers.

According to The New York Times, "The rules, which take effect in July 2010, will allow credit card companies to raise interest rates only on new credit cards and future purchases or advances, rather than on current balances."

That seems unfair. If people cannot pay off their balances and the card companies have to take the risk of carrying those balances in a hard economic environment, why shouldn't they be able to charge more on money which is outstanding? They need to offset additional risk with additional charges.

Consumer activists don't want to look at one critical point. If card issuers go out of business because they cannot balance rising default rates with increased interest, the number of companies offering credit will shrink. With a smaller number of competitors in the market new credit cards and future purchase costs would rise sharply.

It is actions like this that make it clear the the idiot class is still in charge.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 10:33 am

Teens Develop Important Business Skills While Texting BFFs

A new study reveals that teenagers extensive use of digital media help them to develop important social and technical skills online. What may be considered a waste of time by their parents and other adults is actually creating crucial skills for their future in society (and business!).

University of California researcher Mizuko Ito says:

“It might surprise parents to learn that it is not a waste of time for their teens to hang out online. There are myths about kids spending time online - that it is dangerous or making them lazy.  But we found that spending time online is essential for young people to pick up the social and technical skills they need to be competent citizens in the digital age.”

Beyond the Local Peer Group

The study was funded by the John D. and Catherine T. MacArthur Foundation as part of their digital media and learning initiative. The overall goal is to understand how digital media are changing how young people learn, play, socialize, and participate in civic life.

Over three years, a team of 28 researchers interviewed over 800 young people and their parents, both one-on-one and in focus groups. They spent more than 5,000 hours observing teens’ interaction on sites like MySpace, Facebook, and YouTube, as well as using diary studies to document how, and to what end, young people engage with digital media.

The researchers found two categories of teen engagement:

• friendship-driven: essentially “hanging out” with existing friends
• interest-driven: accessing online information and communities that may not be present in the local peer group

Will Online Interaction Create More Informed and Involved Citizens?

In addition to learning business skills necessary for the future, kids may be better citizens for their time online. At the same time they’re learning how to negotiate new kinds of social dynamics (permanent, public, and is always on) the study found that youth are connecting with people in different locations and of different ages who share their interests. This breaks down a lot of barriers and encourages young people to pursue interests that aren’t available or popular within local peer groups.

Ito explains:

“Online spaces provide unprecedented opportunities for kids to expand their social worlds and engage in public life, whether that is connecting with peers over MySpace or Facebook, or publishing videos on YouTube. Kids learn on the Internet in a self-directed way, by looking around for information they are interested in, or connecting with others who can help them.  This is a big departure from how they are asked to learn in most schools, where the teacher is the expert and there is a fixed set of content to master.”

There’s a lot out there for kids to negotiate. Remember that next time your teenager is fully engaged in her phone.

Image Credit: kamshot, Flickr

Source: Business Pundit | 19 Dec 2008 | 10:30 am

Brown warns on volatile oil price

Volatile oil prices remain a threat to the global economy, Gordon Brown warns, following the sharp fall in prices in recent months.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 10:17 am

Obama At The Dike: What Does $1 Trillion Buy?

The new administration will ask Congress for close to $800 billion to stimulate the economy and get America back on the road to recovery without straining the capacity of the map makers. By the time members of the new legislature get their hands on the bills to create new programs and add a bit for their districts, the number is certain to go over $1 trillion.

The Paulson $700 billion plan plus a feeder from the Fed that mainlines capital into the financial system has not been very effective. Of course, Treasury Secretary Henry Paulson has only spent half of his money. He and Fed Chairman Ben Bernanke would argue that without their Herculean efforts, things would be much worse.

Based on very little detail, the executive branch's program for next year will try to save the states, many of which are nearly out of money, and create jobs.

According to The Wall Street Journal, "The broad parameters of the package are known already. It will include a tax cut designed to pump $50 billion to $100 billion into the economy almost immediately; about $100 billion in aid to state governments, primarily to temporarily assume more of the cost of Medicaid, in hopes of staving off benefit cuts or tax increases; and funding in five main areas: traditional infrastructure, school construction, energy efficiency, broadband access and health-information technology."

Since Mr. Obama has not run a large government, he may only have a modest idea of how hard it is to start, track, regulate, and correct problems with dozens of programs meant to cure scores of ills. He also probably under-appreciates how many hands will reach into the pockets of members of Congress to find a few bucks for special projects.

Some of the spending will simply be throwing money at jobs which will create work but little of value for the future.

Most people other than farmers have access to broadband. Many cannot afford it. Rather than adding more wiring, it would be a better idea to have the federal government underwrite free service. It would save the money that the "broadband army" would have to spend on gas going to work in jobs which don't really advance any initiative. After all, the infrastructure already exists.

To a large extent, the same is true of creating more efficient energy systems. Making better car batteries takes a modest number of good scientists and some factories in China. The ethanol business has died and gone to hell because of low oil prices and the need to send corn to the world's poor. This is humanitarian aid which is harder to come by when the global economy is in deep trouble. T. Boone Pickens is prepared to pick up most of the cost of building "wind farms", if the government will kick in tax credits. Then the stimulus package would only need to employ people in manual labor such as placing wiring from the windmills to the electrical grid and digging ditches.

Health-information technology is as complex as it sounds. That is one of the reasons it is such a profitable business for conglomerates like GE (GE) and Siemens (SI). Because most of the creation and deployment of products to streamline the healthcare system requires substantial training, programs in this category could take over a year to beget real jobs. It is not an easy thing to turn an auto worker into a software technician. Most experts would say that technology is not the great enemy of health-care costs. Insurance companies and HMOs are. Better to use the bully pulpit to bring down the expense of the middle men than to send tens of thousands of ill-trained, newly-minted geeks into hospitals and doctor's offices around the nation.

The plan to build schools and rebuild roads and bridges is the best of the lot. Any observant citizen driving coast to coast and border to border would notice that there are a lot of old schools. Whether there are enough schools is a matter for debate. In the end, it might be better to train thousands of teachers and drop the size of classes across America than it is to put up new structures. But that alteration to the program may be too obvious.

That leaves road and bridge repair. Based on collapsing bridges and the million of potholes in the nation's road, the proposed stimulus plan may have found a winner.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 10:00 am

Panasonic set to buy rival Sanyo

Japanese electronics group Panasonic offers to buy rival and compatriot Sanyo for 806.7bn yen ($9bn; £6bn).
Source: BBC News | Business | World Edition | 19 Dec 2008 | 9:57 am

Good indicators

New graduates and employers bolster Egypt economy
Source: BBC News | Business | World Edition | 19 Dec 2008 | 9:52 am

GM and Chrysler seen near loan deal (Reuters)

Reuters - General Motors Corp and Chrysler are close to securing emergency loans as part of a U.S. government aid package that would demand sweeping restructuring at the troubled automakers, according to sources familiar with the talks.

Source: Yahoo! News: Business | 19 Dec 2008 | 9:40 am

'Tough trading' hits Laura Ashley

Laura Ashley reports a fall in like-for-like sales for the past five months due to "tough trading conditions."
Source: BBC News | Business | World Edition | 19 Dec 2008 | 9:35 am

Global stocks fall on oil and U.S. concerns (Reuters)

Reuters - The dollar looked set on Friday for its biggest weekly decline since 1985 and world stocks fell as weak oil prices and concerns about the U.S. economy worried investors in the last full trading week of 2008.

Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 9:28 am

Banker 'betrayed golden goose wife' in trading ring

Read the full complaint from the SEC
Source: Latest Business News from Times Online | 19 Dec 2008 | 9:22 am

JP Morgan CEO and Citi's Rubin won't seek bonuses: report

(Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon and Citigroup Inc board member and adviser Robert Rubin will not request bonuses this year, the New York Times said, citing people familiar with their plans.
Source: Reuters: Business News | 19 Dec 2008 | 8:49 am

JP Morgan CEO and Citi's Rubin won't seek bonuses: report (Reuters)

Reuters - JPMorgan Chase & Co Chief Executive Jamie Dimon and Citigroup Inc board member and adviser Robert Rubin will not request bonuses this year, the New York Times said, citing people familiar with their plans.

Source: Yahoo! News: Business | 19 Dec 2008 | 8:49 am

Media Digest 12/19/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, GM (GM) and Chrysler are close to a loan deal with the government.

Reuters reports that Obama will ask for a major stimulus package focusing on infrastructure and helping state finances.

Reuters reports that BOJ cut rate to help the Japanese economy.

Reuters reports that oil is steady at $36, a four-and-a-half year low.

Reuters reports that Panasonic will spend $4.5 billion to buy Sanyo.

Reuters reports that GMAC's effort to become a bank may fail.

Reuters reports that Oracle's (ORCL) sales dropped but investors moved up the stock.

Reuters reports that Toyota (TM) may post its first operating loss since it was started.

Reuters reports that RIM (RIMM) posted a strong forecast.

Reuters reports that S&P say GE's (GE) "AAA" rating could be at risk.

The Wall Street Journal reports that Obama will sharply increase regulation of financial markets.

The Wall Street Journal reports that Fedex (FDX) cut salaries.

The Wall Street Journal reports that Schwarzenegger rejected a California budget plan because it did not have enough cuts.

The Wall Street Journal reports that Sumner Redstone is closer to a deal with his creditors.

The Wall Street Journal reports that Sirius XM (SIRI) approved a reverse stock split.

The Wall Street Journal writes that Hynix will cut DRAM production by 30%.

The Wall Street Journal reports that the fall in oil prices is causing unrest in Russia.

The Wall Street Journal reports that accountants may fight to keep bank mark-to-market rules.

The Wall Street Journal reports that retailers will offer huge discounts the last weekend of the holiday.

The Wall Street Journal reports that builder Lennar reported a large loss.

The Wall Street Journal reports that ad agency Omnicom will cut jobs.

The New York Times reports that bankruptcy of GM (GM) and Chrysler is a possible part of US loans.

The New York Times reports that China is facing a huge challenge to its economic model.

The New York Times reports that a 1997 change to capital gains taxes may have helped create the housing bubble.

The New York Times reports that The Conference Board’s measure of the economy dropped in November.

The New York Times reports that new rules have been passed to help credit card holders.

The FT reports that banks loaned billions of dollars to Madoff "feeder funds".

The FT reports that Trump is working on a plan to save his gaming business.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 8:31 am

China shares edge up on fuel tax cut (AP)

AP - Chinese shares edged up Friday as a cut in government-set fuel prices boosted airline stocks, while banks fell after a brief rally on hopes of an interest rate cut.
Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 8:12 am

Polaroid files for Chapter 11

Camera-maker Polaroid files for US bankruptcy protection amid allegations of fraud by the founder of its parent group.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 8:07 am

Asia Markets And Europe Open 12/19/2008

Markets in Asia were mixed

The Nikkei fell .9% to 8,589. Toyota (TM) fell on word it might post a loss.

The Hang Seng was down 1.9% to 15,208. HSBC (HBC) was off on worries about credit problems.

The Shanghai Composte moved up .1% to 2,018.

At the open, the FTSE was down 1.1% to 4,282. The Dax was off 1.1% to 4,703 and the CAC 40 was down 1.4% to 3,189.

Data from Reuters.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Dec 2008 | 8:05 am

GMAC bank bid may fail: report (Reuters)

Reuters - Bond fund Pacific Investment Management (Pimco) has turned down a debt-exchange offer from GMAC LLC, threatening the auto and mortgage finance company's bid to qualify for U.S. government funds, the Wall Street Journal reported.

Source: Yahoo! News: Business | 19 Dec 2008 | 8:01 am

Anglo Irish chairman resigns over loan switch

The chairman of Anglo Irish Bank has been forced to step down after it emerged that he sought to hide €87 million (£82 million) in loans from investors by transferring them temporarily to another bank.
Source: Latest Business News from Times Online | 19 Dec 2008 | 8:00 am

Taking the buzz out of Sparks

MillerCoors will remove caffeine from its alcoholic energy drink, which it was accused of targeting to young drinkers. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

Credit card changes will give consumers a break

The rules from federal regulators represent a sweeping change. But the new limits on fees and rates don't start until 2010. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

Stocks drop on gloomy ratings outlook for GE

Falling oil prices pull down energy stocks and automakers take another hit as the Dow falls about 220 points. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

Oracle profit flat, still matches analyst views

SAN FRANCISCO -- Oracle Corp.'s quarterly profit slipped for the first time in three years as a stronger dollar took a big bite out of the business software maker's international sales.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

USA (The Christian Science Monitor)

The Christian Science Monitor - Mary Schapiro, President-elect Obama's new pick to head the Securities and Exchange Commission as its effectiveness is being questioned, would become the first permanent chairwoman of the agency if confirmed. She served six years as an SEC commissioner and now is the CEO of the Financial Industry Regulatory Authority, the securities and brokerage industry's self-policing organization.
Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 8:00 am

State PUC approves $1.9-billion Sunrise Powerlink

The ratepayer-funded electrical transmission project aims to boost the use of clean sources. Regulators gave a...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

White House considers bankruptcy plan for automakers

A 'prepackaged' deal for GM and Chrysler is one option, but the scale involved may make it unfeasible. Reporting...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

2010 Ford Fusion Hybrid: 52 mpg and the darkness before dawn

Even when Detroit manages to do something right, the timing and execution are off. As we know from the works of...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

Delta Air Lines to begin nonstop service between LAX and Sydney, Australia

The new service will begin in July and is almost certain to drive down airfares as Delta, start-up V Australia and United Airlines vie for passengers on a route long dominated by Qantas Airways. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

Blow into the iBreath and your iPod plays a blood-alcohol alert

The accessory's maker hopes the iPod's cool factor will overcome any stigma of being responsible and using a breathalyzer. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

Oracle's profit matches forecast but sales miss

The business software maker earns $1.3 billion in the quarter, down $7 million from last year. That's the first decline since 2005. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Dec 2008 | 8:00 am

UK consumer confidence 'improves'

UK consumer confidence improves for the second month in a row, suggesting VAT and interest rate cuts are working.
Source: BBC News | Business | World Edition | 19 Dec 2008 | 7:52 am

Japan cuts rate to just above zero

The Bank of Japan has trimmed interest rates back down to nearly zero and unleashed a spectacular salvo of measures to fix its broken credit markets, in the face of its sharpest and most destructive recessionary plunge in living memory.
Source: Latest Business News from Times Online | 19 Dec 2008 | 7:45 am

Japan cuts rates as economy falters

The Bank of Japan reduced interest rates for the second time in two months, bringing its rates to within the US Federal Reserve's range after its historic move close to zero earlier in the week
Source: Financial Times - US homepage | 19 Dec 2008 | 5:52 am

Henry Paulson - US economy still unstable

Henry Paulson, the US Treasury Secretary, has warned that the American financial system remains unstable and indicated that the world's largest economy will not return to growth until well into the next administration.
Source: Latest Business News from Times Online | 19 Dec 2008 | 5:21 am

Criticizing Cox

When Securities and Exchange Commission Chairman Christopher Cox made an extraordinary apology for the agency having failed to follow up on clear evidence of wrongdoing by suspected financial fraudster Bernard Madoff, he excluded one key player from blame: himself.

In the public statement on Tuesday, Cox laid out a blistering attack on his staff, while appearing to exonerate himself from any responsibility.

He said the agency's most senior officials learned only a week ago that "credible and specific allegations regarding Mr. Madoff's financial wrongdoing, going back to at least 1999, were repeatedly brought to the attention of S.E.C. staff, but were never recommended to the Commission for action."

"I am gravely concerned," Cox added, "by the apparent multiple failures over at least a decade to thoroughly investigate these allegations or at any point to seek formal authority [from the Commission] to pursue them."

Cox's decision to distance himself from the staffs' performance has rankled former senior S.E.C. officials who had nothing to do with the Madoff inquiries.

The S.E.C. is structured so that the chairman personally is in charge of the staff, these former agency officials said; he is in effect the agency's C.E.O., with division heads reporting directly to him, and he makes decisions about staff appointments and allocation of resources.

"He's the captain of the ship. The staff all work for him," and a former senior S.E.C. enforcement official, who worked in the commission's headquarters until a few years ago and had no involvement in any Madoff-related inquiry.

Jonathan Katz, former secretary to the commission who retired in January 2006, said that for a commission chairman to point the finger at his own staff while not taking blame himself "unseemly."

An S.E.C. spokesman said that neither Cox nor the commission would have any comment on questions about Tuesday statement.

Based on the information available so far, there is little doubt that the S.E.C. staff failed repeatedly, by not pursuing aggressively the evidence handed to it.

It's also true, at least so far, that staff members never brought the evidence to the commissioners' attention—something enforcement investigators would have had to do to obtain a formal order of investigation and authority to issue subpoenas.

In that respect, Cox, who became chairman in late 2005, evidently didn't have any direct role in the S.E.C.'s disastrous failure to follow up.

 The failure, though, was part of larger systemic problems at the S.E.C., which critics say Cox, a former long-time Republican congressman from California, failed to address, and in some respects worsened.

As Condé Nast Portfolio magazine reported in its October issue, Cox took steps to weaken and hamstring the enforcement division.

He slowed down and delayed approval when staff members did ask for formal authority to investigate, and pressed the agency to focus more on penny stock scams, boiler room operations, and other relatively petty crimes. S.E.C. veterans said this detracted from efforts to pursue major Wall Street frauds.

(Cox, who was sworn in as chairman in August, 2005, strongly denied he did anything to weaken enforcement, maintaining that enforcement was his top priority.)

Interviews with agency staff members, though, showed that he distanced himself from the enforcement division, rarely consulting with its director, Linda Thomsen. The two chairmen who preceded him had worked closely with their enforcement directors, usually conferring with them daily.

As chairman, Cox also had responsibility for allocating staff within the agency. The group responsible for examining investment advisers like Madoff has had only a handful of examiners to monitor thousands of investment advisers.

Cox also didn't resolve an organizational problem that hampered the sharing of information within the S.E.C. Katz pointed out, for example, Madoff was required to tell one S.E.C. office how much money he managed as an investment adviser, but was required to report his actual trading positions to another office.

Katz said if the two had been compared, investigators may well have discovered a big discrepancy that would have triggered a focused investigation.

Edwin Nordlinger, a veteran S.E.C. enforcement supervisor in the New York office, said the staff did fail to uncover massive wrongdoing. But he says Cox hadn't taken steps during his tenure to beef up enforcement.

Instead, he slowed down approval of enforcement cases, and took "steps to disable the S.E.C.," said Nordlinger, who retired in early 2005, before Cox took over.

As chairman, Cox devoted less time than his predecessors did on enforcement and domestic securities regulation, focusing on international regulation and efforts to harmonize U.S. securities laws with those of other countries.

The Madoff case is only the latest in a series of recent major failures by the S.E.C. to police the firms it oversees.

It failed to detect the capital shortages at Bear Stearns and Lehman Brothers until it was too late. (Three days before the government had to arrange an emergency sale of Bear Stearns, Cox had publicly pronounced it in satisfactory health.)

Under Cox, the S.E.C. has also substantially weakened a rule limiting short sales—a type of trading widely blamed for helping put banks and Wall Street firms in crisis—until the commission was forced to take emergency action to rein it in.

During the presidential campaign, John McCain called for Cox to be fired.

In nominating Mary Schapiro to succeed Cox, President-elect Barak Obama is charting a new course.

Schapiro has extensive experience in securities law enforcement, just the kind of background needed to whip the S.E.C. back into shape as a potent police force for the investment world. Related Links
Over the Counter, But Not Under the Radar
S.E.C.: A Heckuva Job!
Another Knee-Jerk Proposal From Christopher Cox



Source: Portfolio.com: Top 5 | 19 Dec 2008 | 5:00 am

NY man charged with insider trading on wife's info

NEW YORK (Reuters) - Authorities said on Thursday a former Lehman Brothers Holdings Inc salesman tipped friends and relatives with inside information about 13 impending mergers by divulging confidential information he got from his wife, a public relations executive.
Source: Reuters: Business News | 19 Dec 2008 | 4:29 am

Nikkei falls 1.1 percent as Toyota slips, BOJ awaited (Reuters)

Reuters - The Nikkei average fell 1.1 percent on Friday in cautious trade ahead of a decision on interest rates by the Bank of Japan, with Toyota Motor (7203.T) retreating after a newspaper report warned about an annual operating loss.

Source: Yahoo! News: Business | 19 Dec 2008 | 3:05 am

Nikkei falls 1.1 percent as Toyota slips, BOJ awaited (Reuters)

Reuters - The Nikkei average fell 1.1 percent on Friday in cautious trade ahead of a decision on interest rates by the Bank of Japan, with Toyota Motor (7203.T) retreating after a newspaper report warned about an annual operating loss.

Source: Yahoo! News: Stock Markets News | 19 Dec 2008 | 3:05 am

Norgate says no need for new equity or PGG selldown

Craig Norgate is discounting suggestions that he could be forced to put new equity into company Rural Portfolio Investments (RPI) or to sell down the company's stake in PGG Wrightson. RPI, owned by Norgate, a leading figure in...
Source: New Zealand Herald - Business | 19 Dec 2008 | 3:00 am

Obama signals change with Schapiro

Barack Obama signalled a broad overhaul of the fragmented regulatory system in the US as he nominated Mary Schapiro as chairman of the Securities and Exchange Commission
Source: Financial Times - US homepage | 19 Dec 2008 | 2:07 am

Aussie exodus continues - 100 a day cross ditch

New Zealanders continue to flock to live in Australia in record numbers, nearly 100 each day, according to figures released this morning from Statistics New Zealand. The net number of people moving to Australia permanently or long...
Source: New Zealand Herald - Business | 19 Dec 2008 | 2:00 am

Credit Suisse ties pay to illiquid assets

The Swiss group is to give its top bankers shares in a new $5bn fund of illiquid assets in a move intended to link pay to the long-term performance of credit markets
Source: Financial Times - US homepage | 19 Dec 2008 | 1:58 am

Banks lent billions to Madoff 'feeder funds'

Big banks from the UK, France and Japan helped investors treble or quadruple their bets on Bernard Madoff by lending billions of dollars to 'feeder' funds, which placed their money with the alleged fraudster
Source: Financial Times - US homepage | 19 Dec 2008 | 1:56 am

Taiwan and Mideast among main Clinton Foundation donors

The Taiwanese government and a host of Middle Eastern donors are among the leading supporters of Bill Clinton's philanthropic foundation, according to figures released
Source: Financial Times - US homepage | 19 Dec 2008 | 1:52 am

Did Madoff act alone in $US50bn fraud?

NEW YORK - Bernard Madoff's contention that he pulled off one of the biggest financial frauds in history without any help is being met with disbelief by his investors and experts in the securities industry. It normally takes a...
Source: New Zealand Herald - Business | 19 Dec 2008 | 1:30 am

Brunswick partner's husband charged with insider trading

A former Lehman Brothers employee has been charged with insider trading through a scheme that prosecutors said used information obtained from his wife, a partner of the public relations firm Brunswick Group
Source: Financial Times - US homepage | 19 Dec 2008 | 12:45 am

In Brief - Thursday

Alliant Energy (LNT), an electric and natural gas utility, forecast '08 EPS at the low end or below its target of $2.65-$2.75 vs. views of $2.64....

Source: Investor's Business Daily: BUSINESS | 19 Dec 2008 | 12:44 am

Trends & Innovations - Thursday

Surveillance system spots trouble

Source: Investor's Business Daily: BUSINESS | 19 Dec 2008 | 12:44 am

After The Close - Thursday

POTASH CORP. OF SASKATCHEWAN (POT), a fertilizer maker, cut its '09 EPS outlook to $10.75 vs. views for $14.71, due to softness in global...

Source: Investor's Business Daily: BUSINESS | 19 Dec 2008 | 12:44 am

Business Briefs - Thursday

Pentair, Ingersoll slash outlooks. The diversified U.S. manufacturers cut their profit forecasts as business conditions deteriorated more rapidly...

Source: Investor's Business Daily: BUSINESS | 19 Dec 2008 | 12:34 am

Flexible Loans Loom As Foreclosure Threat

After a deluge of mortgage defaults, the proverbial perfect storm is building.

Source: Investor's Business Daily: BUSINESS | 19 Dec 2008 | 12:34 am

Chilean Power Utility Rides Coattails Of Latin American Economies

Chile's economy resembles a twin-engine airplane, says economist Alfredo Coutino.

Source: Investor's Business Daily: BUSINESS | 19 Dec 2008 | 12:34 am

ANZ National Bank accused of favouring overseas workers

ANZ National Bank has being accused of turning its back on New Zealanders in favour of cheap non-resident workers. The company has made an application to the Department of Labour to review its accreditation to allow it to employ...
Source: New Zealand Herald - Business | 19 Dec 2008 | 12:30 am

Trump considers rescue for gaming company

The real estate mogul and television personality might take his ailing gaming group private
Source: Financial Times - US homepage | 19 Dec 2008 | 12:20 am

Mary Schapiro has task of sorting out US market regulation

Mary Schapiro, the incoming head of the US Securities and Exchange Commission, walked into a storm of controversy less than a day after being nominated to lead the Wall Street regulator when Barack Obama takes office next month.
Source: Latest Business News from Times Online | 19 Dec 2008 | 12:00 am

Gazprom threatens to cut off gas to Ukraine

Gazprom will cut off gas supplies to Ukraine in January if the former Soviet republic fails to settle a $2.4 billion ($£1.6 billion) bill, the Russian utility said on Thursday.
Source: Latest Business News from Times Online | 19 Dec 2008 | 12:00 am

NZ business confidence at record low

New Zealand business confidence slumped to a record low in December, suggesting the longest recession in 18 years may deepen. A net 21 per cent of companies expect sales and profits will fall over the next 12 months, according...
Source: New Zealand Herald - Business | 19 Dec 2008 | 12:00 am

Pier 1 3Q loss widens amid spending free fall (AP)

AP - Struggling home accessories retailer Pier 1 Imports Inc. said Thursday its fiscal third-quarter loss widened amid a free fall in consumer spending, raising some questions about its ability to weather the economic slowdown.
Source: Yahoo! News: Business | 18 Dec 2008 | 11:53 pm

Officials: Obama to tap Rep. Solis, Ron Kirk (AP)

AP - Nearing completion of his Cabinet, President-elect Barack Obama has selected California Rep. Hilda Solis as his labor secretary and former Dallas mayor Ron Kirk as U.S. trade representative, officials said Thursday.

Source: Yahoo! News: Stock Markets News | 18 Dec 2008 | 11:40 pm

Treasury, mortgage rates keep tumbling (AP)

AP - Investors poured more money into Treasurys on Thursday, sending yields to record lows again even as the Treasury Department said it would sell record amounts of notes next week.
Source: Yahoo! News: Business | 18 Dec 2008 | 11:38 pm

Hear: About That Pay Cut

Listeners have been writing in this week about their experiences with falling wages. Now let's dive deeper into what those stories might mean.

Today on Planet Money:

-- A book editor in the Northeast says his company just cut his wages -- and a lot of other people's -- by five percent. He says the idea is to avoid layoffs.

-- Economist Howard Rosen of the Peterson Institute says the actual data on wages is mixed. He's more troubled by signs that the economy is still contracting, with many millions of people unemployed and major manufacturers putting everything on hold.

Download the podcast; or subscribe. Intro music: KT Tunstall's "http://www.amazon.com/I-Often-Dream-Of-Trains/dp/B0015FW304">Hold On." Find us: Twitter/ Facebook/ Flickr.

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Source: NPR Blogs: Planet Money | 18 Dec 2008 | 11:38 pm

NZ halts imports of Australian tomatoes

Just days after Australia lifted its ban on importing New Zealand tomatoes, Biosecurity NZ has suspended imports tomatoes from across the Tasman. The temporary ban on Australian tomatoes coming into New Zealand was imposed after...
Source: New Zealand Herald - Business | 18 Dec 2008 | 11:35 pm

BofA shelves $3bn plan to cut CCB stake

Bank of America has shelved a $3bn sale of China Construction Bank stock following objections from Beijing, igniting fears that some investors could struggle to offload holdings in Chinese banks
Source: Financial Times - US homepage | 18 Dec 2008 | 11:32 pm

Deutsche Bank faces buyer strike over bond move

The German bank is facing the prospect of a buyers' strike against its own debt as investors protest against the bank's decision not to redeem a bond deal this week
Source: Financial Times - US homepage | 18 Dec 2008 | 11:31 pm

VIX Index of U.S. Stock Option Prices Retreats 5% to 47.34

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 11:02 pm

Hardesty Capital's Stepherson Likes Financial ETFs

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 11:00 pm

NZ Shares: Market drops more than half a per cent

The New Zealand share market dipped first thing this morning, erasing any gains made at the end of trading yesterday. The benchmark NZX-50 index dropped 18.928 points, or 0.699 per cent, to 2688.663 from 2707.591 in the first few...
Source: New Zealand Herald - Business | 18 Dec 2008 | 10:43 pm

Meltdown 101: Is it time to refinance a mortgage? (AP)

AP - With mortgage rates sinking to the lowest level since the early 1960s, homeowners around the country are giving themselves an early holiday present: a refinanced mortgage with lower monthly payments.
Source: Yahoo! News: Business | 18 Dec 2008 | 10:36 pm

Merger off between Qantas and British Airways

Qantas Airways said last night its talks with British Airways (BA) about a potential tie-up have ended after the airlines were unable to agree on key terms of a merger. "Qantas Airways and British Airways Plc are announcing that...
Source: New Zealand Herald - Business | 18 Dec 2008 | 10:00 pm

Portland Guy Gets Raise

Just got this from Steve in Portland, Ore.:

So maybe this won't help stem the tide of unrelentingly negative news, but I actually received a (modest -- 4%) pay increase a couple weeks ago.

I work as a programmer /analyst for a small-ish tech company who provide a suite of management utilities and other services to corporate real estate companies (or just companies that own and lease real estate, really). Our clients include Lehman, Merrill Lynch, Citigroup, among others, so you can imagine how nervous I was for the couple weeks where every day at least one of our large accounts' names were in the news going bankrupt or close to it. So it was very surprising (and relieving!) to hear this from my boss. I wasn't expecting it in the least, and was just praying to keep my job given how bleak the market is out there. So maybe I'm the exception and not the rule, but I just thought you'd like to know that it's not 100% bad right now.

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Source: NPR Blogs: Planet Money | 18 Dec 2008 | 9:40 pm

'I am doing good for people'

Slavery continues to be a problem in rural Brazil. In the last 10 years, government inspectors have freed 30,000 slave laborers working in jobs tied to exports of steel, cattle, soy, and ethanol. Sandy Tolan followed a young freedom rider who's on the front lines.
Source: Marketplace | 18 Dec 2008 | 9:40 pm

Even sports leagues are in the red zone

Sports have been generally immune from economic downturns. But not this time. Major leagues such as the NFL and NBA have had layoffs. And the situation is worse for lower-level sports. Business Week Sports Editor Mark Hyman gives Tess Vigeland the play-by-play.
Source: Marketplace | 18 Dec 2008 | 9:40 pm

Wages aren't the real issue in bailout

Wages and other labor costs have been a main source of contention in talks about the auto bailout. But the debate is about much more than hourly pay. Commentator Harley Shaiken says the future of the economy is at stake.
Source: Marketplace | 18 Dec 2008 | 9:40 pm

New rules adopted for credit cards

Federal regulators have approved new rules to protect consumers from surprise interest rate hikes and fees on their credit cards. But banks say the rules will hurt card holders, whether they have good credit or bad. Nancy Marshall Genzer reports.
Source: Marketplace | 18 Dec 2008 | 9:39 pm

Wall St. bonuses often more like salary

It's bonus season on Wall Street. But this year investment firms are reducing bonuses for most employees. Why is anyone on Wall Street getting a bonus at all? Jeremy Hobson reports.
Source: Marketplace | 18 Dec 2008 | 9:39 pm

Madoff scandal shows how badly reform is needed, says Obama

NEW YORK - Bernard Madoff spent his first day under electronic monitoring Thursday as President-elect Barack Obama said the scandal brought on by the disgraced investor "has reminded us yet again of how badly reform is needed." The...
Source: New Zealand Herald - Business | 18 Dec 2008 | 9:30 pm

Schapiro faces huge job in reviving SEC

As President-elect Obama's nominee to lead the SEC, Mary Schapiro will be confronted with a slew of problems. The agency that's supposed to police Wall Street increasingly finds itself derided as Keystone Cops. Steve Henn reports.
Source: Marketplace | 18 Dec 2008 | 9:29 pm

Obama vows to fight 'greed and scheming' on Wall Street (AFP)

AFP - President-elect Barack Obama vowed Thursday to crack down on "greed and scheming" on Wall Street as he tapped three veteran regulators to take a tough new approach to market rules and oversight.

Source: Yahoo! News: Stock Markets News | 18 Dec 2008 | 9:19 pm

Citigroup's McCormick Sees Changes in Foreign Exchange Market

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 8:41 pm

Jacob Frenkel Discusses Fallout From Bernard Madoff Scandal

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 8:31 pm

Former SEC Official Barbash Says Madoff Flags Weren't There

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 8:14 pm

Oil crashes to record lows

Oil dropped more than 3 percent to below US$39 a barrel this morning (NZ time) as mass layoffs pushed the US economy deeper into recession, signaling a drastic pullback on energy spending. Light, sweet crude for February delivery,...
Source: New Zealand Herald - Business | 18 Dec 2008 | 8:10 pm

Planning A Pay Cut

We're aiming to talk on the podcast today about the question of layoffs versus pay cuts. Meanwhile, I got this letter from an employer. The business has fewer than 100 workers, and to hear this person tell it, they're all about to make less.

The listener writes:

All of our board members and our outside accountant argued that we risked losing our "best" people if we cut their pay and that we were better off laying off a smaller number and keeping the rest whole.

We, the company management and majority owner, argued that we've seen people in our industry recently laid off and not find work at all. These examples are in fact well known to our staff. So, we feel that our read on the job market is such that our best people (the one's we can't afford to lose because of their experience and/or client relationships) won't leave because there is no where they can go and make up the pay difference.

We also felt that the economic conditions being what they are that our staff who have worked together for a long time, would rather share the pain then feel "survivors guilt".

These decisions are purely market driven. In different times during a slow down in work we would do layoff's confident that the people let go could find other work and we would be able to retain those people we wanted to keep. In fact we did lay off a few people several months ago.

These are different times and we convinced our board and accountant that the best way to make up the financial shortfall we are projecting is this unconventional approach. I suspect many people like us are going to make similar decisions and I have already seen job seekers willing to do more for less.

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Source: NPR Blogs: Planet Money | 18 Dec 2008 | 7:29 pm

The 50 Best Business Blogs of 2008

Some blogs truly define today’s business voice. These blogs represent a healthy mixture of independent and mainstream voices, prominent academics and small business owners with equally strong opinions.

We compiled a completely biased sampling of our 50 favorite blogs, sorted by category. The categories are neither based on anything official nor are representations within them equal. For example, we have included a ridiculous number of finance and investing blogs, an industry where coverage truly stood out this year. It is possible that we have forgotten other categories.

However smattered the designations on this list, rest assured that every single one of these blogs is worth reading. If you find something missing, or want to show off your own blog, we encourage you to comment.

Here they are, categorically sorted, and alphabetically ordered:

Advertising
Dim Bulb Author and advertising critic Jonathan Salem Baskin picks apart ads and marketing campaigns, then offers advice on how to do them right. Hint: Watch the branding.

Business Leaders
Jonathan’s Blog Sun CEO Jonathan Schwartz is arguably the best exec blogger in the ’sphere.

Blog Maverick, Mark Cuban’s blog. Commentary on various issues that Mark Cuban is interested in. Makes readers feel like an insider to the upwardly mobilized.

Business Travel
The Economist’s Gulliver is not only one of the best business travel blogs on the Web, it is one of the only ones.

China
All Roads Lead to China provides economic and business analysis and news from China, by an American expert.

Customer Issues
Church of the Customer covers customer evangelism. Useful for both companies and individuals.

The Consumerist looks at business from a consumer-rights standpoint while remaining remarkably readable and informative.

ECommerce
Practical ECommerce lives up to its name, offering really useful advice and tips for those with online presences.

Economics
Marginal Revolution: Tyler/Tyrone Cowen and Alex Tabarrok author one of the Web’s essential economics blogs.

Freakanomics Blog at the New York Times: The authors of Freakonomics present…more Freakonomics! This econ blog is a treat.

Economics Roundtable offers useful daily econ- and business links.

In Beat the Press, Economist Dean Baker points out flaws and missteps in economic reporting, often giving valuable insight in the process.

Entrepreneurship
Toilet Paper Entrepreneur: Mike Michalowicz offers invaluable tips, resources, and networking/exposure opportunities for new entrepreneurs in this innovative blog.

Environmental Sustainability
The Oil Drum gives thorough peak oil and enviro-news opinion and analysis.

Financial News and Investing
Steadfast Finances offers down-to-earth tips and coverage of finance, for everyday folks.

Financial Armageddon: Author Michael J. Panzner covers the carnage using media and official outlets.

Seeking Alpha compiles reports and commentary from more than 2,000 contributors, making it a information hub and one-stop shop for an assortment of financial information.

Market Movers at Conde Nast Portfolio: Felix Salmon blogs on the financial industry all day at this blog. And he does a mighty good job of it.

Credit Writedowns offers the best credit crisis coverage on the Web.

Calculated Risk: Lending, mortgages, indices, and cutting-edge macroeconomic coverage–Calculated Risk covers it all, one step ahead of the rest.

Financial Times’ Alphaville Deftly filtered real-time coverage of market activity, from the UK but covering the US and EU as well.

Abnormal Returns is the perfect place to browse updated, smartly filtered links on investing.

Franchising
The Franchise King Blog is an invaluable resource for franchisers and those interested in the business.

Generational Blogs
These were tricky to sort out. No single blog covers all of a generation’s issues, but some blogs address those issues while primarily focusing on some other aspect of business. Here are our picks:

Baby Boomer: My Retirement Blog
Gen-X: Startup Addict and Gen X Finance
Gen-Y: Employee Evolution

Human Resources
HR Bartender integrates current news, events, and tips into a comprehensive and elegant HR resource.

HR Wench offers frank, pithy, and entertaining advice on real-life human resources issues.

India
Trak.in’s Arun Prabhudesai shares startup, Internet, entrepreneurship, and other business buzz from India.

Influence Science
Incentive Intelligence covers the sometimes-mysterious world of incentives, rewards, and influence in a very readable and interesting blog.

Innovation
Endless Innovation’s lengthier, insightful posts on innovation inspire and inform.

IT/Tech
TechCrunch: Stop here first for tech news.

Silicon Alley Insider provides essential snark about Silicon Valley.

The Business of IT provides carefully considered posts relevant to IT departments across the board.

Job Search Issues
Unemploymentality gets to the heart of the unemployed, well, mentality.

The Wall Street Journal’s Laid off and Looking follows eight laid-off MBAs through their job searches, offering insight from the ground.

Leadership
The Practice of Leadership offers inspiration, motivation, and tips for leaders.

Marketing
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Source: Business Pundit | 18 Dec 2008 | 7:05 pm

Can Your South Korean Brother Spare a Dime?

Mike in South Korea has watched the local currency, the won, get weaker against the dollar over the past year. He writes:

As an indicator, what does the exchange rate say about the relative strength or production of a country's economy?

Although changes in exchange rate matter greatly, the exact ratio of South Korean won-to-dollars matters less than you might think.

Exchange rates tell companies how to price their products when selling in overseas markets. For example, if an American company decided a year ago that it wanted to make $5 in revenue for each t-shirt sold in South Korea, it could price them at 4670 won. The number of won for which each t-shirt is sold doesn't matter, as long as the company can convert that number into $5.

The fact that a year ago each Korean won was worth one-tenth of a penny did not mean that the economy was necessarily weaker than America's. Currencies vary widely in how they fare against the dollar, from the Kuwaiti dinar, worth $3.66, to the Zimbabwean dollar, whose infinitesimal value has reached exponential proportions. When economists compare countries, they use a single currency for the statistics -- regardless of whether that currency is actually used by any of the countries being compared.

What does matter a great deal, however, is change in the exchange rate. If the company had kept the price of 4670 won, it would today only make $4.50 for each t-shirt. Currency depreciate hurt the bottom line.

From Mike's perspective, the South Korean won lost value relative to the U.S. dollar. But from the company's perspective, the dollar appreciated relative to the South Korean won. The company must either:

• Lower its expectations for revenue of $5 per t-shirt, which means accepting lower per t-shirt profits.
  
• Raise local prices to the South Korean equivalent of $5, which risks attracting local competition capable of undercutting the company.
  

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Source: NPR Blogs: Planet Money | 18 Dec 2008 | 5:50 pm

Ezrati Says Comparing Economy Now to 1930s Is `Ridiculous'

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 5:28 pm

Toll Brothers Added to `Conviction Buy' List at Goldman Sachs

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 5:12 pm

New Credit Card Regulations Finally Throw Consumers a Bone

If you have a credit card, you should pay it off monthly and not get deeply into debt. I could advocate that until my vocal cords dry up, but it’s mere rhetoric for most Americans. The Office of Thrift Supervision, also aware of peoples’ widespread debt, today unveiled a set of new regulations around credit card fees and billing practices. It’s about time (from Reuters ):

Reasonable time to make payments

Institutions cannot consider a payment late unless consumers were given a reasonable amount of time to pay.

Double cycle billing

Banks cannot use the practice known as double-cycle billing, in which they reach back into prior billing cycles to compute finance charges. For example, under double-cycle billing, a cardholder who begins a billing cycle with a $500 balance and makes a one-time payment of $450 during the cycle would be charged interest on the full $500. Under the new rules, the cardholder would be charged interest on the remaining balance of $50, in this example.

Interest rate increases on outstanding balances

Banks cannot raise the annual percentage rate on an outstanding balance, except in certain conditions.

Payment allocation

When different annual percentage rates apply to different balances, banks…must apply the consumer’s payment over the required minimum first to the balance with the highest annual percentage rate, or split the amount equally among the balances.

Fees/Deposits for credit issuance

Banks cannot charge account-opening fees or membership fees to a credit card if they would use up most of the available credit on the account during the first year after account opening.

Universal default

Banks cannot increase the interest rate on outstanding balances if the consumer defaults on other debt obligations such as a gym membership. The practice is sometimes referred to as universal default.

I don’t understand the second to last one. How would a bank know if someone would use up most of a card’s credit during the first year?

Credit card companies can’t gouge consumers the way they have been. I doubt the regulations will change current issuance practices much, either, considering the current credit crunch. These new rules finally offer consumers a small victory.

Source: Business Pundit | 18 Dec 2008 | 5:08 pm

After The 401(k)

Listener Chris, of KQED land, recommends circling back for this New York Times Magazine piece on a proposal for Guaranteed Retirement Accounts. The article begins:

This fall, millions of Americans got a nasty shock when they opened up the reports for their individual retirement accounts and 401(k) plans. With double-digit returns a thing of the past, there's an understandable nostalgia for the modest but predictable defined-benefit pensions an earlier generation of workers relied on in retirement. Now there's a proposal that revives the idea but makes it a universal, government-sponsored program.

Bonus from Wilbur: Should the 401(k) be killed?

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Source: NPR Blogs: Planet Money | 18 Dec 2008 | 4:42 pm

Morning Note

What I sent the Planet Money crew today:

FedEx cuts salaries--this is a *BIG* deflation deal. Economists fear wage cuts more than layoffs, because wage cuts can lead to deflation, which can be disastrous and hard to stop.

Jobless claims slightly down. May be worth mentioning--not extraordinary, these days at least.

Car Industry healing itself: GM and Chrysler talks. Private sector plan to create better car batteries.

Are these signs of the car industry figuring out its own problems and solving them?

UK car bailout is *way* tougher than US one:

Markopolos: The guy who cracked the Madoff Ponzi scheme. It's been everywhere, not sure we have anything to add, but man, it's delicious to read this guy completely right about everything years ago, and totally ignored.

Econoblogs HATE Obama's SEC chief pick. They say she's a hack.

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Source: NPR Blogs: Planet Money | 18 Dec 2008 | 4:04 pm

Goldman's Nordvig Sees Further Weakness for Dollar

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 3:39 pm

Julius Baer's Gattiker Sees Opportunities in Technology Stocks

Source: Bloomberg - All Podcasts | 18 Dec 2008 | 3:37 pm

Do Shock Ads Deter Youth?

I don’t think this plan will work, but I suppose it’s worth a try (from Ananova):

Teenage binge drinkers are being sobered up with beer (coasters) plastered with pictures of young boozers unconscious in puddles of vomit. Millions of the shocking coasters are being distributed to German clubs and pubs to remind youngsters how their night could end.

Germany is facing a teen binge drinking epidemic fuelled by all-you-can-drink parties where youngsters pay an entry fee and then drink until they drop. One coaster has a picture of a teenage boy, dancing at a party and showing off his muscles to the girls then on the flip side he is passed out after wetting himself.

Another beermat shows a girl laughing with friends while the reverse shows her passed out on a picnic table in her underwear. And one shows football fans enjoying a match on one side, but a fan asleep and covered in his own vomit on the reverse.

(The ad pictured above is from a similar campaign in Australia.)

Do shocking ads targeting youth work at all? I recently viewed some responsible driving and anti-marijuana ads here in the US that were also shocking, if not terribly graphic. Now that I’m older, I think they’re perfectly legitimate, and that teens should be warned about the potential dangers associated with their actions. But as a teenager, I remember thinking those ads idiotic. In fact, I figured they were scare tactics by adults to get me to stop having fun.

The ads clearly comfort adults, but do they work on teens? What do you think?

Source: Business Pundit | 18 Dec 2008 | 3:04 pm

Obama's S.E.C.

Underscoring the magnitude of problems in the current financial regulatory system, President-elect Barack Obama took the unusual step of nominating a new S.E.C. chairman before he's even finished appointing his cabinet. He named Mary Schapiro as his pick.

Schapiro, an attorney, is currently the head of the Financial Industry Regulatory Authority, which is the primary self-regulatory agency for the brokerage industry. It's the place you turn to when you think your broker has ripped you off, and it's where registered brokers get guidance on best sales practices. Its arbitration process has long been criticized for favoring brokers over investors, although that's something Schapiro has worked to change under her leadership.

Stepping into the S.E.C. just weeks after the revelation that it failed to uncover Bernard Madoff's alleged $50 billion Ponzi scheme will be no easy task. After seeing the collapse of two large Wall Street firms this year, nearly everyone agrees that the regulatory system as it currently stands is broken.

In late October, Schapiro spoke on a conference panel about the changes needed to fix the problems. She advocated a two-tiered regulatory system with a "twin peaks" structure, consisting of a market stability regulator and a business conduct regulator. The market stability regulator would have broad enforcement powers while the business conduct one would serve as a watchdog to ensure that banks and brokerages are meeting certain standards. She cited the success of such a system in places like the Netherlands, Australia, and New Zealand.

The first order of business that Schapiro as S.E.C. chair would likely tackle would be whether a merger of that agency with the Commodity Futures Trading Commission makes sense. Obama nominated former Treasury undersecretary Gary Gensler to head the C.F.T.C.

The C.F.T.C. has come under scrutiny as lawmakers are pushing for greater oversight of the credit default swaps market, the financial instruments that have been an integral part of this credit crisis. A combination of the two agencies has been proposed by current S.E.C. chairman Christopher Cox and Treasury Secretary Henry Paulson.

Of course, critics are already lining up opposite Schapiro. Some believe should would not be tough enough for the role, and others are already raising the point that Madoff's firm has been registered with FINRA since it was formed in 1960.


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Source: Portfolio.com: Top 5 | 18 Dec 2008 | 2:30 pm