World Business News Headlines for December 22, 2008

Power firm reviews bids

Babcock & Brown Power (BBP), which owns the Glenbrook Power Station, is reviewing some non-binding bids to buy its business amid an ongoing company review of its capital structure. The energy generation group, which has power...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:30 pm

Global M&A falls in 2008 (Reuters)

Reuters - Global merger volume dropped by almost a third in 2008, ending five years of deal growth as a lack of available credit, plunging stock markets and a worldwide financial crisis undermined companies' ability to make acquisitions.
Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 4:05 pm

Mortgage re-defaults rising, no sign of slowing

WASHINGTON (Reuters) - The rate of U.S. home mortgage borrowers defaulting after their loans are modified is rising and shows no signs of leveling off, U.S. banking regulators said on Monday.

Source: Reuters: Business News | 22 Dec 2008 | 4:02 pm

Mortgage re-defaults rising, no sign of slowing (Reuters)

Reuters - The rate of U.S. home mortgage borrowers defaulting after their loans are modified is rising and shows no signs of leveling off, U.S. banking regulators said on Monday.
Source: Yahoo! News: Business | 22 Dec 2008 | 4:02 pm

Shoppers haggle for deals from desperate retailers (AP)

AP - If you're looking for an extra bargain before the holidays, you may only have to ask.

Source: Yahoo! News: Business | 22 Dec 2008 | 4:01 pm

The Big Three and Irrational Fear of Company Failure

By John Tamny RealClearMarkets

When the U.S. Senate blocked Congress's attempt to save the U.S. carmakers earlier this month, White House spokeswoman Dana Perino made the claim that if federal money wasn't freed up soon, the United States would no longer have an auto industry.

Good political theater for sure, but even if bankruptcy for the Big Three were to mean that each would vanish, the U.S. would still have a vibrant auto sector--albeit one overseen by foreign carmakers. By Perino's strict definition, the U.S. also lacks industries that produce televisions, watches and cameras, but near as this writer can tell, there's been no discernible economic decline as a result.

Consumer confidence flags in face of recession

Consumer confidence has sagged as nervousness about the onset of a global recession outweighs the boost from lower petrol prices, falling interest rates and tax cuts. The Westpac McDermott Miller consumer confidence index fell...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Golden paydays for bailout bankers

Top executives at American and British banks are being paid billions in salary, bonuses and benefits while taxpayers prop up their struggling employers. In the United States, top officials at banks being supported by Government...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Strategic investors accept wind-down

More than $1.7 billion of investors' money is now locked into moratorium repayment schemes after Strategic Finance became the latest to join the list. Strategic yesterday announced it had approval from its 15,000 stockholders to...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Creech warns Fonterra auction system threat to dairy prices

Calls are mounting for a review of Fonterra's online auction system amid concerns it is helping drive down international dairy prices. In an open letter to dairy farmers, Open Country Cheese director Wyatt Creech said the auction...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Australians offer advice on broadband

New Zealand must learn from mistakes made in Australia when developing a national broadband network, senior Telstra officials said yesterday. Speaking on a video link from Melbourne to journalists in Auckland, public policy managing...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

A2 moving to exploit sales spurt in Australia

Milk company A2 Corporation is planning to relocate its head office across the Tasman to build on soaring sales in Australia. A2 owns and licenses intellectual property for identifying cows, producing and marketing milk with the...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Fletcher in new Stevenson bid

After being denied the right to buy part of the Stevenson Group three years ago, Fletcher Building has taken a tilt at another part of the business. The Commerce Commission yesterday said it had an application from Fletcher for...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Workers begin life after GM

GM employee General Motors' financial woes have workers around the country worrying about what life without GM might be like. The 1080 hourly workers at the automaker's sport utility plant in Moraine, Ohio are about to find out....
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Thomas Pippos and Mike Shaw: Relax tax to buffer pain of recession

Given the recessionary context where cash is king, a number of rough edges in our tax rules scream out for reform to help alleviate the cash flow concerns of many businesses. Evidence of this concern is in the latest analysis of...
Source: New Zealand Herald - Business | 22 Dec 2008 | 4:00 pm

Are Dollar Stores Finally a Sell? (DLTR, NDN, FDO)

The ever-weakening economy is driving consumers to lower and lower price-points. It is called the "trade-down economy" where people are buying lower priced goods rather than not buying goods. That is great for the dollar stores. But this morning there was a downgrade on Dollar Tree Inc. (NASDAQ: DLTR) by Goldman Sachs which might raise some eyebrows.

Goldman Sachs cut its rating to SELL from NEUTRAL. It also added the dollar chain operator to the CONVICTION SELL LIST. Being on that list is never a list that a company wants to be on. It even has the ring that analysts have grown so negative on the stocks now that they might be killing even the good stocks.

The call is somewhat on valuations and somewhat on growth prospects, but it still has shares down almost 4% at $42.00. This has been one of the great performers as its 52-week trading range is $20.72 to $44.11.

This fallout from the call is also nailing competitor 99 Cents Only Stores (NYSE: NDN), whose shares are down almost 5% at $10.86 today. Another competitor, Family Dollar Stores Inc. (NYSE: FDO) is down over 3% at $24.48.

What is interesting here is that Dollar Tree is still expected to grow earnings by almost 10% to $2.75 from this year to next (i.e., Jan-2010) to $2.75 EPS and revenues by about 8% to $5.04 billion. UBS just started Dollar Tree last week with a NEUTRAL rating, yet another sign that analysts do not want to chase stocks.

The valuations on these are elevated compared to the past during the good times. But what is interesting is that Dollar Tree has had a history of beating earnings estimates. If that continues, then Goldman Sachs may look like they were just throwing out the good with the bad. And if Dollar Tree does poorly from here at this point, then it is hopefully because consumers can afford to buy goods for $2.00 and higher rather than $1.00.

Jon C. Ogg
December 22, 2008

Source: 24/7 Wall St. | 22 Dec 2008 | 3:58 pm

High defaults even after mortgages are modified: regulators

More than half of mortgages modified in the first quarter were at least 30 days delinquent after half a year, U.S. data show, and regulators say it’s necessary to figure out why so many modifications are not having the effect of preventing re-defaults, Meanwhile, an industry alliance has set an impressive target for growth in the number of mortgage modifications for 2009.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:58 pm

Free-shipping deals fail to lure more last-minute online shoppers

Last-minute deals for free shipping before the holidays were apparently not enough to light a fire under online shoppers last week.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:58 pm

Futures Movers: Oil falls as demand concerns outweigh OPEC

Crude-oil futures trade higher as news that the Organization of Petroleum Exporting Countries could resort to further cuts in production comes into play.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:57 pm

JP Morgan acquires two UBS units

JP Morgan will develop its client base in Canada as the Swiss bank continues to trim its investment banking arm.
Source: Financial Times - US homepage | 22 Dec 2008 | 3:56 pm

Oil falls below $42, Saudi says price to stabilize

LONDON (Reuters) - Oil fell below $42 a barrel on Monday, in a retreat from session highs achieved earlier partly in response to a weak U.S. dollar and comments from Saudi Arabia that OPEC supply cuts will stabilize the market.

Source: Reuters: Business News | 22 Dec 2008 | 3:56 pm

GM equity may be wiped out: Credit Suisse

(Reuters) - General Motors Corp's equity may be largely if not entirely wiped out as it complies with the restructuring targets laid out in the federal auto bailout, an analyst at Credit Suisse said as he cut his price target to $1 and rating to "underperform."

Source: Reuters: Business News | 22 Dec 2008 | 3:54 pm

You Were There First

Good morning from the holiday crew at Planet Money. Adam and I are enjoying the peace and quiet, we think. Jonathan Kern, our genius radio editor, sends a link from the Washington Post:

Trade Barriers Toughen with Global Slump.

The economists we talk to have been warning us about this, saying that governments might decide to protect their own factories at great risk to the world economy. Meanwhile, I woke up this morning to news I already knew, thanks to the whole Planet Money crowd: Businesses are trimming costs by slicing wages, 401k contributions, and work hours. From the New York Times:

More Companies Are Cutting Labor Costs Without Layoffs.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 22 Dec 2008 | 3:52 pm

Stocks slide in light trading

Stocks were mixed Monday morning as investors geared up for a volatile session at the start of a holiday shortened week.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:52 pm

Market Snapshot: U.S. stocks mildly lower to begin holiday-shortened week

U.S. stocks fall after starting off on a mixed note, with investors back concentrating on the fortunes of retailers and consumer discretionaries.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:52 pm

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

Among the companies whose shares are expected to see active trade in Monday's session are AIG, Toyota and American Express.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:50 pm

Madoff: Lifestyles of the rich and infamous

Bernard Madoff, the man behind an alleged $50 billion fraud, has a yacht named 'Bull,' owns several luxurious homes and may even have had two private planes on call.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:47 pm

Toyota braced for historic loss

Carmaker Toyota forecasts its first annual loss in 71 years, as Japan sees a record drop in exports.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 3:45 pm

Financial Stocks: Real-estate developers mixed as they reportedly seek U.S. aid

U.S. financial stocks inch lower in early action as investors assess a report that commercial real-estate developers are seeking access to federal investment funds. AIG shares make gains on word that it will sell one of its specialty-insurance units to Munich Re.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:45 pm

World markets dip on Toyota's profit warning (AP)

AP - World stock markets fell modestly Monday in light pre-Christmas trade as another profit warning from Toyota and lower-than expected-profits at U.S. drugstore chain Walgreen weighed on investor sentiment.

Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 3:41 pm

Banking on another bad year

Bankers are counting down the days until they officially close the book on a terrible 2008. Too bad the outlook for 2009 is just as dismal.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:41 pm

10 worst housing markets for 2009

The housing market hasn't bottomed out yet. Of the top 100 markets, here are 10 with the worst forecasts.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:39 pm

Walgreen profit misses view, growth plan cut

CHICAGO (Reuters) - Walgreen Co posted a smaller-than-expected quarterly profit and again cut its store opening plans as consumers spent less, sending its shares down more than 4 percent on Monday.

Source: Reuters: Business News | 22 Dec 2008 | 3:38 pm

OECD sees 25m jobs at risk as Toyota warns on profits (AFP)

AFP - The global economic crisis could put an extra 25 million people out of work, the OECD warned, as Japan's iconic Toyota auto company on Monday forecasted its first ever operating loss and European stocks plunged on pre-Christmas gloom.

Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 3:37 pm

Retail Stocks: Gloomy holiday outlook heaps lumps of coal on retail stocks

Retail shares head lower to kick off a holiday-shortened week as investors react negatively to wintry weather and snowstorms that promise to deliver additional lumps of coal for retailers and their already-dismal holiday outlook.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:29 pm

Wall Street slips; Walgreen weighs

NEW YORK (Reuters) - Stocks fell on Monday, with the Nasdaq losing 1 percent, at the start of what is expected to be a light trading week as investors took in corporate earnings and details on retail sales.

Source: Reuters: Business News | 22 Dec 2008 | 3:27 pm

Caterpillar announces pay cuts and buyouts (Reuters)

Reuters - Heavy equipment maker Caterpillar Inc said on Monday it would cut white-collar pay by up to 50 percent and offer buyouts to some employees as it looks to cut costs.

Source: Yahoo! News: Business | 22 Dec 2008 | 3:26 pm

Caterpillar announces pay cuts and buyouts

CHICAGO (Reuters) - Heavy equipment maker Caterpillar Inc said on Monday it would cut white-collar pay by up to 50 percent and offer buyouts to some employees as it looks to cut costs.

Source: Reuters: Business News | 22 Dec 2008 | 3:26 pm

Munich Re buying AIG's HSB unit for $742 million

FRANKFURT (Reuters) - German reinsurer Munich Re will buy American International Group Inc's HSB Group for $742 million to expand its U.S. business, the companies said on Monday.

Source: Reuters: Business News | 22 Dec 2008 | 3:26 pm

Munich Re buying AIG's HSB unit for $742 million (Reuters)

Reuters - German reinsurer Munich Re (MUVGn.DE) will buy American International Group Inc's HSB Group for $742 million to expand its U.S. business, the companies said on Monday.

Source: Yahoo! News: Business | 22 Dec 2008 | 3:26 pm

Tech Stocks: Technology sector dips as Palm jumps on new investment

Technology stocks dip Monday morning even as Palm Inc. shares jump on news that it will get an additional $100 million in private equity investment.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:25 pm

More than 1 million jobs cuts seen in 2009: Challenger

The labor market faces persistent weakness in 2009, with more than 1 million jobs cuts expected due to weak spending among consumers and businesses, according to a Monday report from Challenger, Gray & Christmas Inc.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:23 pm

Stocks fluctuate as investors look for good news (AP)

AP - Wall Street began a holiday-shortened week cautiously Monday, as stocks fell in light trading while investors reacted to a bleak outlook from Toyota Motor Corp. and disappointing earnings from drugstore operator Walgreen Co.

Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 3:22 pm

Toyota's forecasts loss as sales slide

Japanese auto giant Toyota said Monday that it would suffer an operating loss due to plummeting auto sales.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:21 pm

'08 stock picks: How low can they go?

We revisited our top 10 picks from last year's Investor's Guide. Hopefully history will prove us right in the long run.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:14 pm

Walgreen profit misses view, growth plan cut (Reuters)

Reuters - Walgreen Co posted a smaller-than-expected quarterly profit and again cut its store opening plans as consumers spent less, sending its shares down more than 4 percent on Monday.

Source: Yahoo! News: Business | 22 Dec 2008 | 3:11 pm

Dear Obama: How to help retirees

When it comes to retirement, I've got a whole laundry list of issues I wish President-elect Barack Obama and his counterparts in Congress would tackle as soon as they are sworn in this month. But the U.S. deficit has hit record levels, so I'm trying to be realistic about what we can afford. With that in mind, I'm paring down my retirement wish list to three things that can make a big impact - without blowing a hole in the nation's finances.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 3:10 pm

Wall Street stocks decline in early trade

US stocks fell in early trade as investors reacted to the government's announcement last Friday of a bailout for the vital auto sector and new details of President-elect Obama's planned economic stimulus package
Source: Financial Times - US homepage | 22 Dec 2008 | 3:06 pm

CO2 Restriction Easing on Coal-fired Power Plants? (BTU, ACI, MEE, CNX, FTEK)

Last August, the US Environmental Protection Agency (EPA) ruled that a proposed coal-fired power plant in Utah did not need to file for a clean-air permit because the emissions from the plant were not regulated pollutants under the Clean Air Act. Carbon dioxide, which all of us expel every time we exhale, is not a pollutant under the EPA regulations. Thus, if a power plant is going to emit carbon dioxide, it's just breathing.

Needless to say, environmental groups have already challenged this ruling, and an environmental appeals board has directed EPA to re-think its ruling on carbon dioxide. But until the EPA completes its review, any new coal-fired power plant can be built without any control on greenhouse gas emissions.

This is temporarily good news for coal producers, which could use some good news. Peabody Energy Corp. (NYSE:BTU) closed recently off nearly 75% from 52-week highs. Arch Coal Inc. (NYSE:ACI) is off nearly 80%, Massey Energy Company (NYSE:MEE) is off nearly 85%, and CONSOL Energy Inc. (NYSE:CNX) is down about 75%.

Nearly everyone expects the incoming Obama administration to mandate significant reductions in greenhouse gas emissions, which would almost certainly mean a reduction in coal burning. But coal produces nearly 50% of US electricity, and, as with gasoline for transportation, there is no cheap, quickly-implemented alternative. The only fuel that could possibly replace significant amounts of coal-generated electricity is nuclear. And nukes may be even more controversial than coal. There is also the notion that piling on extra costs on to companies (and ultimately to consumers) right now when everyone is strapped will only hurt the economy further.

That leaves "clean coal," which is more of a promise than a reality. Essentially, clean coal burning implies capturing the greenhouse gas emissions before they go up the stack and then storing the captured emissions somewhere. Carbon sequestration is touted as the solution for either storing CO2 indefinitely or until the CO2 can be used in secondary recovery of US crude oil.

Fuel-Tech, Inc. (NASDAQ: FTEK) offers boiler optimization, and air pollution reduction and control solutions. It has been unable to maintain being a successful stock story, but it is probably chomping at the bit for whatever cleaner and more efficient mandates come down.

The catch is that not every existing power plant is built near a potential CO2 storage site. In fact, most aren't, which is the bigger catch. New coal-fired plants built near suitable geology will likely not be near the power grid, which means new transmission lines.

The biggest catch though is how the US chooses to tax carbon dioxide emissions. A straight-forward tax is unlikely because politicians dislike taxes, so that leaves the various cap-and-trade schemes. But any tax on CO2 emissions will ultimately be paid by consumers, which will be unpopular as well.

There is no simple, clean, quick alternative to coal. In the near-term, nothing will replace it. That's probably good news for the producers. The bad news is that the US sits on so much coal that pricing pressure will always be a factor.

Paul Ausick
December 22, 2008

Source: 24/7 Wall St. | 22 Dec 2008 | 3:04 pm

London Markets: Retailers pressured in steady London

Shares in London fall modestly, although retailers come under selling pressure as investors continue to fret about consumer spending trends in the days ahead of Christmas.

Source: MarketWatch.com - Top Stories | 22 Dec 2008 | 3:00 pm

Wall Street slips; Walgreen weighs (Reuters)

Reuters - Stocks fell on Monday, with the Nasdaq losing 1 percent, at the start of what is expected to be a light trading week as investors took in corporate earnings and details on retail sales.

Source: Yahoo! News: Business | 22 Dec 2008 | 2:57 pm

Wall Street slips; Walgreen weighs (Reuters)

Reuters - Stocks fell on Monday, with the Nasdaq losing 1 percent, at the start of what is expected to be a light trading week as investors took in corporate earnings and details on retail sales.

Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 2:57 pm

World stocks mostly drop in pre-Christmas trading (AFP)

AFP - Global stocks mainly fell on Monday, despite a multi-billion-dollar US government lifeline for the American auto industry, as analysts warned of volatile trading in the run-up to Christmas.

Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 2:47 pm

Elevation & Palm, Good Money Chases Bad (PALM, AAPL, RIMM)

Palm, Inc. (NASDAQ: PALM) has managed to secure an additional investment from Elevation Partners for an additional $100 million equity investment in Palm. It is easy to understand why Palm would want the investment, but we'd note that this is a doubling down effort from Elevation where good money is chasing bad money now that it already owns and controls such a large interest of Palm.

Elevation will increase its investment in Palm by acquiring newly issued Series C preferred stock that is convertible into Palm common stock at a price of $3.25 per share. This represents a 31% premium to Friday's close. The Series C preferred stock carries a 0% dividend rate. Elevation will also receive warrants to acquire 7 million shares of Palm common stock at the same price. Prior to March 31, 2009, Palm may elect to cause Elevation to sell up to $49 million of this new investment to other investors on the same or better terms than on which Elevation invested.

This capital will allow Palm to push new product introductions scheduled for 2009 and will give it more stability in troubled times.

There has only been some hype behind the new operating system because Apple's (NASDAQ: AAPL) iPhone has taken so much attention that even the Research in Motion Ltd. (NASDAQ: RIMM) momentum has been somewhat upset. Combine that with an economy where users are either holding their older phones a bit longer, and you have the double whammy. Palm's cheaply-priced Centro did manage to score many new smartphone users at the start, but the economy and competition caught up.

We just noted this company over the weekend in our "10 Stocks Under $10" newsletter with much of the same questioning. There have been many rumors (and hopes) that Dell or even Microsoft might want to acquire the company. The problem is that this may be viewed with more criticism and questioning rather than any praise. Had the company not cleaned out its cash with the huge dividend, this would not have been necessary. And the problems do not end there...

With or without the $100 million additional investment, 2009 is going to be the key pivotal year for Palm. Its destiny as an independent and even as a viable entity are both still in question.

Palm's stock is up 9% at $2.73 right at the open.

Jon C. Ogg
December 22, 2008

Source: 24/7 Wall St. | 22 Dec 2008 | 2:32 pm

Munich Re buys AIG unit for $742m

Stricken US insurer continues to shed assets by selling its Hartford Steam Boiler Company for a third less than it was bought for eight years ago
Source: Financial Times - US homepage | 22 Dec 2008 | 2:30 pm

Japan recession deepens, China cuts rates

SINGAPORE/LONDON (Reuters) - China cut interest rates on Monday and Japan warned it was sliding deeper into a recession encroaching steadily on the global economy, closing factories and throttling trade.

Source: Reuters: Business News | 22 Dec 2008 | 2:23 pm

A Consensus Forming That Existing General Motors (GM) Common Shares Are Worthless

On Friday, it become very apparent to us that the common equity in General Motors (NYSE: GM) will become worthless. We advised shareholders of GM that they have 60 days to sell at whatever price they can. Despite this warning and details from the Treasury's term-sheet for GM, shares of GM closed up nearly 23%. Absolutely incredible!

Today, Credit Suisse is making a similar case. The firm downgraded GM from Neutral to Underperform and cut the price target to $1, saying the U.S. bailout will mean the complete or near-complete elimination of the existing GM equity. The firm cut their price target from $2 to $1.

Coming soon: Nightmare on Tech Street

The technology industry's pain from the credit crisis and consumer spending slowdown is about to get a lot worse.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 2:15 pm

Theo Fennell talks stall as sales slump 20%

Theo Fennell, the luxury jeweller whose ostentatious rings and necklaces have been worn by Elton John and David Beckham, slumped to a first-half loss of £840,000 as sales were hit by the downturn.
Source: Latest Business News from Times Online | 22 Dec 2008 | 2:14 pm

SINA & Focus Media Ad Combination Swap (SINA, FMCN)

SINA Corporation (NASDAQ: SINA) has signed a definitive agreement with Focus Media Holding Limited (NASDAQ: FMCN) to acquire substantially all of Focus Media's assets in the digital out-of-home advertising networks. This will including LCD display network, poster frame network and its in-store network. Focus Media will retain its Internet advertising division, the movie theater advertising network portion of its commercial location network, and it will retain certain traditional billboards.

The terms of the deal are interesting for Focus Media shareholders. SINA will issue 47 million new shares to Focus Media as consideration for the acquired assets, and then Focus Media Holding will distribute the new SINA shares to its shareholders shortly after the closing.

The transaction has already been approved by the boards of directors of Focus Media and of SINA and does not require shareholder approval.

SINA will acquire the assets under Focus Media's LCD display network, poster frame network and
in-store network.

The related business of the acquired assets combined accounted for approximately 52% of revenues and approximately 73% of gross profits for Focus Media for the nine months ended September 30, 2008.

This is essentially a $1 billion deal, although the reaction is getting some sellers on it. SINA shares are down 8% at $26.90 in the initial reaction. Shares of Focus Media are down 2% at $10.75 in the initial reaction. Focus Media had already seen a substantial recovery over the last week on the bet that a reorganization was coming.

Jon C. Ogg
December 22, 2008

Source: 24/7 Wall St. | 22 Dec 2008 | 2:11 pm

How Mac deals with recession

Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 2:07 pm

Japan recession deepens, China cuts rates (Reuters)

Reuters - China cut interest rates on Monday and Japan warned it was sliding deeper into a recession encroaching steadily on the global economy, closing factories and throttling trade.

Source: Yahoo! News: Business | 22 Dec 2008 | 1:58 pm

More Bank Rate Cuts: Is China Worse Off Than Imagined?

It is not a good sign when a company cuts interest rates five times in three months. The government may be sensing more trouble in China than it is letting on.

According to Bloomberg, "The one-year lending rate will drop by 0.27 percentage point to 5.31 percent and the deposit rate by the same amount to 2.25 percent from tomorrow, the People’s Bank of China said."

The central government may have seen the 27% drop in Japanese exports last month and worry it is next. Or, officials may know more than the are letting on and China is moving downhill more quickly than outsiders expect.

Douglas A. McIntyre

Source: 24/7 Wall St. | 22 Dec 2008 | 1:53 pm

Samsung bets big on the great outdoors

As anyone who has walked into Best Buy lately knows, the prices of high-definition TVs are in a precipitous freefall.
Source: Business and financial news - CNNMoney.com | 22 Dec 2008 | 1:50 pm

Toyota sees first operating loss

NAGOYA, Japan (Reuters) - Toyota Motor Corp forecast a first-ever annual operating loss, blaming a relentless sales slide and a crippling rise in the yen in what it said was an emergency unprecedented in its 70-year history.

Source: Reuters: Business News | 22 Dec 2008 | 1:39 pm

Woolworths gives closure details

Administrators at Woolworths give the details of the closure of the chain's 807 stores between now and 5 January.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 1:38 pm

Top Analyst Upgrades (BKC, CS, FNF, HES, IFX, NUE, OSG)

These are the top analyst upgrades we have seen this Monday morning ahead of the opening bell:

Burger King (BKC) Raised to Buy at UBS.
Credit Suisse (CS) Raised to Buy at Merrill Lynch.
Fidelity National (FNF) Raised to Overweight at Barclays.
Hess (HES) Raised to Outperform at Credit Suisse.
Infineon (IFX) Raised to Neutral from Sell at Deutsche Bank.
Nucor (NUE) Raised to Buy at Deutsche Bank.
Overseas Shipholding (OSG) Raised to Overweight at JPMorgan.

Jon C. Ogg
December 22, 2008

Source: 24/7 Wall St. | 22 Dec 2008 | 1:32 pm

Npower fined over doorstep sales

The energy regulator Ofgem fines supplier Npower £1.8m over the mis-selling of energy contracts by door-to-door salespeople.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 1:30 pm

Asia tech firms cut costs with forced leave for workers

TAIPEI (Reuters) - When the global recession began to take a toll on high-tech manufacturers in Taiwan, the factories gave their workers a vacation that many would have just as soon skipped.

Source: Reuters: Business News | 22 Dec 2008 | 1:10 pm

The E-Commerce Dream Turns Dark

For years, e-commerce was the bright corner of the retail business. Easier to do comparison shopping. No crowds. Free shipping.

This year, online retail is looking a great deal like the mall. Comscore has already cataloged the flattening of e-commerce sales this year compared to last, but the trends of buying online are looking more like what people do when they walk though stores.

Comscore shows onlne sales off 1% from November 1 thought December 19.

Video games are doing well online as they are in stores. Books are going well through both channels. That makes sense. Books are cheap.

E-commerce office supplies are off 19%. Numbers from Staples and Office Depot stores don't look that bad. Ditto jewelry and watches.

The salad days of online retail are over.

Douglas A. McIntyre

Source: 24/7 Wall St. | 22 Dec 2008 | 1:00 pm

Aer Lingus reopens Shannon route

Aer Lingus announces plans to resume flights between Shannon airport in the west of Ireland and Heathrow airport in London in March 2009.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 12:56 pm

Top Pre-Market Analyst Downgrades (ABX, COGT, GMR, GG, NEM, NAT, PRU, UBS, X, WOR)

These are some of the top pre-market analyst downgrades we have seen early this Monday morning:

Barrick (ABX) Cut to Neutral at UBS.
Cogent (COGT) Cut to Neutral at JPMorgan.
General Maritime (GMR) Cut to Neutral at JPMorgan.
Goldcorp (GG) Cut to Neutral at UBS.
Newmont (NEM) Cut to Neutral at UBS.
Nordic American Tanker (NAT) Cut to Underweight at JPMorgan.
Prudential (PRU) Cut to Marekt Perform at FBR.
UBS (UBS) Cut to Neutral at Merrill Lynch.
US Steel (X) Cut to Hold at Deutsche Bank.
Worthington (WOR) Cut to Underperform at CIBC.

Jon C. Ogg
December 22, 2008

Source: 24/7 Wall St. | 22 Dec 2008 | 12:54 pm

Coworking vs. the Coffee Shop: Who Wins?

In the spirit of New Year’s reviews and resolutions, I’d like to propose an exercise. Look back on the last several years of your life. How many hours, in aggregate, do you suppose you’ve spent staring at a computer and drinking a hot beverage?

I’m in the “too many to count” category, as are many corporate functionaries, programmers, designers, etc. When you’re a freelancer, those hours have potential to become decidedly isolated. It is treacherously easy to fall into Lazy Freelancer mode, which involves rolling out of bed, turning on the coffee machine, and sitting in front of the big glowing screen all day in your pajamas.

The Bane of the Coffee Shop
When the pajama piece gets old, freelancers often head to coffee shops. There, you can be isolated among other lone wolves, experiencing human company, familiar faces, and a placeboic level of social interaction. The coffee shop allows freelancers to feel as though they’ve accomplished in that old-fangled world outside of the Web.

Admittedly, some freelancers are enterprising types who dress nicely every day, attend meetings and workshops, and expose themselves to open skies on a regular basis. I cannot count myself among their ranks. In my world, the suction capacities of the Internet tend to overwhelm the urge to self-present as a professional member of society. Fortunately, or unfortunately, I live in a town where business owners walk around in ski pants and dogs run around office spaces. You get away with less here, appearance wise.

Why Coworking is Better
But that’s not my point. My point is that working at home gets lonely; coffee shops are a little bit better, but coworking rocks. I say this having never done it (there is no venue in my town; I am considering opening one). I imagine that it must rock. Consider the average coffee shop, where:

-A cafe latte sets you back $3-$4. You feel guilty if you sit around without purchasing a new one, making an average day of work there cost around $12, excluding yummy baked goods.
-You may or may not end up next to really loud, gossipy people.
-You feel like a ham if you are the only one with a laptop.
-The seats are often uncomfortable.
-You can’t talk on your cell phone inside. Well, I don’t. Plenty of people do. I consider it rude.
-You are obligated to look somewhat hip.

Coworking, on the other hand, allows you a range of cafe-like benefits, without the cafe:

-You pay a flat membership fee instead of a daily fee.
-Everyone has a laptop!
-You get the chance to collaborate with your peers.
-The seats are probably more comfortable.
-Cell phone use is more acceptable–it is a workspace.
-The hip factor may not be a factor, although I am not sure about this point.

I can only imagine that coworking will burgeon as more people turn towards freelancing. Having frequented far too many coffee shops, I will allow myself to claim, having never coworked, that coworking is better.

Have you coworked, or do you own a coworking location? If so, how does it compare?

Source: Business Pundit | 22 Dec 2008 | 12:46 pm

London's FTSE 100 index down at 4,290.30 (AP)

AP - Share prices on the London Stock Exchange were down in trading on Monday morning.
Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 12:31 pm

EDF gains EU approval for British Energy deal

EDF was given a green light from EU regulators today to proceed with its £12.5 billion takeover of British Energy, the UK nuclear generator.
Source: Latest Business News from Times Online | 22 Dec 2008 | 12:26 pm

Festive shoppers shun High Street

High Street footfall is down significantly in the week running up to Christmas, according to figures from Experian.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 12:23 pm

Biggest Christmas injury risk from toys? People tripping over them

The biggest injury risk from toys this Christmas is from people tripping over them, according to trading standards officers.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 12:17 pm

Unemployment fears worry Germans

German consumer confidence stagnates amid production cutbacks and growing fears of unemployment.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 12:04 pm

Bank of England 'did not expect' such a severe crash

The Bank of England under-estimated how serious the credit crunch would be, its deputy governor admitted in comments due to be broadcast on Monday. Sir John Gieve said that...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:43 am

AP Executive Morning Briefing

World stocks mostly lower on dour economic outlook HONG KONG (AP) _ World stock markets were mostly lower Monday as a U.S. pledge to rescue its troubled carmakers failed to ease deep...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:41 am

Sunday shoppers fail to lift pre-Christmas spirit

The number of shoppers visiting high street stores on the last Sunday before Christmas tumbled nearly 10 per cent compared to the same day last year, figures published today reveal.
Source: Latest Business News from Times Online | 22 Dec 2008 | 11:35 am

The Westin Tabor Center Denver's $11M Renovation Nearly Complete

State-of-the-art Boardroom Opens With Reception for Local Arts Organization. DENVER, Dec. 22 /PRNewswire/ -- Officials from The Westin Tabor Center, Denver announce...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:30 am

SectorWatch.biz Issues MarketStats on Entertainment Companies SAPXF, DIS, NWS, RHIE, DWA, and LGF

IRVINE, Calif., Dec. 22 /PRNewswire/ -- SectorWatch.biz announces the availability of MarketStats for entertainment equities in the news and driving markets today....
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:30 am

Irish move to recapitalise banks

The Irish government is to recapitalise its three biggest banks offering them a cash injection of 5.5bn euro.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 11:25 am

World stocks mostly lower after Toyota warning

World stock markets mostly fell Monday in light pre-Christmas trade after Japan's Toyota Motor Corp. issued its second profit warning in less than two months amid plunging car sales around...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:23 am

Train failure blocks longest overland rail tunnel

Officials say a train with a technical failure has stopped in the world's longest overland tunnel and has been evacuated. A spokesman for Switzerland's Loetschberg Base Tunnel says the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:19 am

China's central bank cuts interest rates

China is cutting interest rates for the fifth time in four months to support its slowing economy. The central bank said Monday that the one year lending and deposit rate would be reduced
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:13 am

Michelin production cuts to hit 4th quarter profit

Michelin SCA's recent production cuts, made to adjust to sharply falling demand amid the global economic crisis, will cost euro150 million ($209 million) in the fourth quarter, the French...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:12 am

Euro clambers back above $1.40

The European single currency rose above 1.40 dollars on Monday, as dealers digested a long-awaited US government rescue package for the country's Big Three automakers ahead of the Christmas
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:11 am

Hong Kong stock index falls 3.3 percent (AP)

AP - Hong Kong's key stock index dropped over 3 percent Monday as worries about the global economy and company earnings led investors book profits after the market's recent run-up.
Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 11:06 am

Hong Kong stock index falls 3.3 percent

Hong Kong's key stock index dropped over 3 percent Monday as worries about the global economy and company earnings led investors book profits after the market's recent run-up. The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 22 Dec 2008 | 11:06 am

Brussels clears British Energy sale to EDF

Brussels has cleared the proposed acquisition of British Energy by EDF, the world's largest operator of nuclear reactors - but only subject to strict conditions.
Source: Financial Times - US homepage | 22 Dec 2008 | 10:58 am

Warner threatens YouTube on music

Warner Music Group has told YouTube, the video sharing site, to remove music videos by its artists from the site.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 10:53 am

EDF allowed to buy British Energy

French Energy company EDF wins permission from the European Union competition authorities to buy British Energy, subject to certain conditions.
Source: BBC News | Business | World Edition | 22 Dec 2008 | 10:47 am

AIG makes loss on HSB sale to Munich Re

Munich Re, the world’s largest reinsurer, has agreed to buy American International Group’s (AIG) engineering insurance and inspection business for $742 million as it seeks to boost its presence in the US.$
Source: Latest Business News from Times Online | 22 Dec 2008 | 10:44 am

Emotional Intelligence: Not Total BS

Recently I had the opportunity to spend a day in an Emotional Intelligence workshop. Emotional Intelligence (known as EQ) is a term used to describe a person’s ability or skill in recognizing and managing his or her own emotions, as well as those of others. Before the workshop, participants took a test to determine our personal EQ.

I did not score well. Abysmal in fact. My score was so low that I immediately started reading the book Working With Emotional Intelligence by Daniel Goleman. According the book, my low score indicated I am severely socially inept, virtually friendless, and unable to keep a job.

Not true.

I took some more tests online and got vastly different scores for each. Depending on who you asked, I was totally clueless or highly skilled in the art of managing myself and others. I went to the workshop confused and of the opinion that this whole EQ business was essentially BS.

The EQ Model

As I learned, there are some different schools of thought out there, but the model we used in the workshop contained four components:

Self Awareness - perceiving one’s own emotions as they occur, recognizing the primal, physical responses to stimuli
Self-management — controlling one’s own emotions and impulses and adapting to changing circumstances
Social awareness — the ability to sense, understand, and react to others’ emotions
Relationship management - the ability to inspire, influence, and develop others

As we broke it down, things started to make more sense. I was able to identify the areas I’m stronger in, versus those that could use a little help. And I realized it’s not all about holding hands and singing Kumbyah.

Change of Heart

The biggest impression the day made on me was when we were asked to think of a person who brought out the best in us. We all wrote down qualities that person possessed, or behaviors they displayed. Here’s our collective list:

placed trust
used rewards
had high expectations
saw potential and expressed that
gave responsibility
positive
calm
gave opportunities to practice, even fail
didn’t request things they wouldn’t do themselves
provided friendly competition
supportive and caring
genuine
gave honest feedback
communicated well
listened well
showed confidence in self and others

THAT’S emotional intelligence, no matter what you call it. So whatever score you might receive on any test, work toward mastering that list and you’ll lead anyone - and everyone!
Image Credit: lumaxart, Flickr

Source: Business Pundit | 22 Dec 2008 | 10:30 am

Irish Government injects €5.5bn into banks

The Irish Government today announced plans to inject €5.5 billion (£5.1 billion) into the country’s three largest banks, in a move that effectively nationalises Anglo Irish Bank, the scandal-hit lender.
Source: Latest Business News from Times Online | 22 Dec 2008 | 9:06 am

Toyota warns of first ever operating loss

The world's biggest automaker, forecast its first ever group operating loss due to a relentless global slide in car sales and a crippling rise in the yen
Source: Financial Times - US homepage | 22 Dec 2008 | 9:02 am

China shares fall on bleak outlook (AP)

AP - Chinese stocks snapped a six-day winning streak on Monday as investors unloaded shares to cash in on recent gains amid mounting worries over earnings prospects.
Source: Yahoo! News: Business | 22 Dec 2008 | 8:50 am

China shares fall on bleak outlook (AP)

Japan stocks up after rate cut, US automaker loans (AP)

AP - Japanese stocks rose Monday, bolstered by authorities' recent recession-fighting steps and relief that ailing U.S. automakers managed to secure emergency government loans.

Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 8:46 am

Bank failed to spot crisis despite 'crazy borrowing'

The Bank of England's Deputy Governor for Financial Stability has admitted that the central lender failed to grasp the full scale of Britain’s economic problems before the current financial crisis erupted.
Source: Latest Business News from Times Online | 22 Dec 2008 | 8:37 am

Toyota to make first loss since 1941

Profits at Toyota Motor, the Japanese motor giant, are set to dive into the red for the first time since 1941 as exports screech to a halt and margins are hammered by the soaring yen.
Source: Latest Business News from Times Online | 22 Dec 2008 | 8:15 am

Automakers are way off the marque

General Motors, Chrysler and Ford need to reduce their brand rosters if they are going to cut costs enough to survive, analysts say. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

Madoff had steady presence in Washington

Among politicians, the embattled money manager was known as a generous donor and a 'guru of finance.' When money...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

Online holiday-season spending falls slightly

Consumer purchases from Nov. 1 through Friday have fallen less than 1% from a year earlier, a study finds. Online...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

Battle tactics for niche firms

Building relationships and managing cash can help firms weather the recession and compete against large rivals. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

Jim Carrey's 'Yes Man' finds assurance at top of box office

The film takes in $18.2 million during its opening weekend, while Will Smith's 'Seven Pounds' pulls in $16 million as storms hit parts of the country. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

Investors feel a bit more cheery heading into holiday week

They are optimistic that an interest rate cut and auto industry loans may spur a year-end rally. Investors might...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

As layoffs rise, wrongful-termination suits may follow

Labor attorneys advise firms on defensible downsizing. Avoid the appearance of bias by category, one says. Lured...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 8:00 am

The baby of the family business

Jacob Paz, who co-owns a Christmas tree lot in Torrance at 17, balances work life and studies. It's 4:30 in the...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 6:18 am

Japanese exports in record 27% fall

November shipments plunged at a record annual pace as a global economic slump and a surging yen slashed demand for everything from autos to electronics
Source: Financial Times - US homepage | 22 Dec 2008 | 5:23 am

SmartHome hopes to build enthusiasm for a green lifestyle

The exhibit outside the Chicago Museum of Science and Industry urges people to use environmentally sustainable methods. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 5:07 am

Japanese exports drop a record 26.7%

Japanese exports plunged a record 26.7% in November from a year earlier on falling demand amid a deepening global recession, the finance ministry said today.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 22 Dec 2008 | 5:04 am

Tata agrees to cash boost for Jaguar

Tata, the Indian owner of Jaguar Land Rover, has agreed to inject "tens of millions" of pounds into the British car company to , while the government continues to consider the case for a taxpayer-funded bail-out
Source: Financial Times - US homepage | 21 Dec 2008 | 11:27 pm

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