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Details of Obama's stimulus still being negotiated: BidenBarack Obama’s transition team is still negotiating the nuts and bolts of its economic-stimulus plan with Congress, but no deal has been reached, Vice President-elect Joseph Biden says.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:51 pm Stocks fluctuate as investors sift through data (AP)
Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 5:48 pm Wall Street stocks sink on US housing dataUS stocks turned negative after an early rally in thin volumes as investors digested the government's final and unchanged figure on third-quarter GDP and more data on the housing market.Source: Financial Times - US homepage | 23 Dec 2008 | 5:48 pm Stocks Hitting 52-Week Highs (ALGT, AGNC, LOPE, ROCM, RGLD)
Allegiant Travel Co. (NASDAQ: ALGT) shares hit $47.45 before selling off back under the prior 52-week high of $47.34. Trading volume is still under 100,000 shares, and it normally trades 344,000 shares per day. This is a 200% gain from its 52-week lows. If we told you a couple months ago that a a leisure travel company which provides scheduled passenger services from small cities to leisure destinations would be at 52-week highs, would you have believed it? American Capital Agency Corp. (NASDAQ: AGNC) is another strange leader after it declared a $1.20 dividend last week. This is a REIT that invests in mortgages, but many of its mortgages have government guarantees. This is at $21.85, above its $21.69 prior high and almost a double off its lows. Grand Canyon Education, Inc. (NASDAQ: LOPE) barely put in a new high of $17.73, only a penny above its post-IPO high. While education is supposed to do well, this IPO has done much better than most would have guessed based on its pre-IPO coverage. Rochester Medical Corporation (NASDAQ: ROCM) is apparently one of the medical device makers that is recession-proof and an Obama-friendly company. It develops, manufactures, and markets urinary continence and urine drainage care products. At $15.20, its 52-week range was $9.03 to $14.98. Royal Gold, Inc. (NASDAQ: RGLD) is at it again. We spoke with the company, and it seems that traders are buying this up over its future prospects on new properties it recently acquired.
Jon C. Ogg Source: 24/7 Wall St. | 23 Dec 2008 | 5:47 pm SF Fed economist sees longest recession since WW2CHICAGO (Reuters) - The United States will likely emerge from recession in the third quarter of 2009 after enduring an 18-month downturn, the longest since World War Two, according to an economist at the San Francisco Federal Reserve Bank.Source: Reuters: Business News | 23 Dec 2008 | 5:46 pm Las Vegas Sands says lays off 500 in MacauNEW YORK (Reuters) - Las Vegas Sands Corp , which runs the world's largest casino in Macau, said on Tuesday it has let go 500 staff there and plans to cut back workers' hours as it suspends construction activity.Source: Reuters: Business News | 23 Dec 2008 | 5:46 pm Whittard sold to private equityThe Whittard of Chelsea chain of shops has been sold to a private equity firm after going into administration.Source: BBC News | Business | World Edition | 23 Dec 2008 | 5:45 pm Tech Stocks: Red Hat gains on earnings report while tech shares weakenTech stocks gave up earlier gains by midday Tuesday following a downturn on the broader market.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:42 pm Currencies: Dollar little changed after data on U.S. home sales, confidenceThe U.S. dollar remains slightly lower after reports show sales of new and existing homes slowing during November.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:41 pm World economies limp to ChristmasWASHINGTON/ LONDON (Reuters) - The world's economies limped toward Christmas on Tuesday, with a U.S. contraction confirmed, Britain shrinking more sharply than thought and Spain and New Zealand languishing in recession.Source: Reuters: Business News | 23 Dec 2008 | 5:39 pm No Christmas cheer as recession gathers steamWASHINGTON (Reuters) - Existing home sales fell by a record amount last month as the recession picked up pace although a collapse in gasoline prices gave consumer sentiment a rare lift, data on Tuesday showed.Source: Reuters: Business News | 23 Dec 2008 | 5:37 pm GM and Ford take another nosediveShares of General Motors and Ford Motor took a dive on Tuesday after ratings agencies issued bleak outlooks for the U.S. auto industry.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 5:32 pm Darrell Delamaide's Political Capital: Why Mary Schapiro is the right person for the SEC jobWASHINGTON (MarketWtch) -- Most successful professionals who enter government at a high level take a pay cut, but Mary Schapiro, President-elect Barack Obama's pick to be the new chairman of the Securities and Exchange Commission, faces one of the steepest as she moves from what may be the highest-paid job in financial regulation to a much lower government salary.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:32 pm Consumer confidence inches upConsumer confidence rose slightly this month, coming off 28-year lows thanks to cheaper oil and deep discounts during the holiday-shopping season.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 5:31 pm FTSE-100 index closes up 6.82 points at 4,255.98 (AP)AP - Share prices on the London Stock Exchange closed higher Tuesday.Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 5:24 pm Oil falls further as demand slowsOil prices extend their losses due to growing signs of weakening demand from consumers amid the global economic slowdown.Source: BBC News | Business | World Edition | 23 Dec 2008 | 5:20 pm Why '09 may be betterHere's hoping that 2009 is a better year than 2008. It's hard to imagine how it could be much worse.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 5:16 pm No Christmas gift for U.S. automakers seen in Dec salesDETROIT (Reuters) - General Motors Corp and Chrysler may have won a $17.4 billion gift from the U.S. government a week before Christmas, but at their showrooms, barely a creature was stirring.Source: Reuters: Business News | 23 Dec 2008 | 5:15 pm World stocks mixed after more grim US housing news (AP)
Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 5:13 pm Europe Markets: European shares finish almost unchanged in holiday weekShares climb in European trading in a holiday-shortened week, with defensive food producers and utility firms among the strongest performers.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:10 pm Stocks retreat in rocky tradeStocks fell Tuesday in a thinly traded session as dour readings on the housing market vied with an upbeat report on consumer sentiment.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 5:08 pm Outlook for economy keeps market in check (Reuters)
Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 5:08 pm Outlook for economy keeps market in check (Reuters)
Source: Yahoo! News: Business | 23 Dec 2008 | 5:08 pm Outlook for economy keeps market in checkNEW YORK (Reuters) - Fading hope for a recovery in the housing market and worry about the outlook for consumer spending kept U.S. stocks in check on Tuesday, with weakness in retailers and car makers getting in the way of an early rally.Source: Reuters: Business News | 23 Dec 2008 | 5:08 pm London Markets: Shares in London inch higher as financials, insurers recoverLondon shares advance, with battered banking firms such as Royal Bank of Scotland taking back some lost ground.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:07 pm Energy Stocks: Benchmarks all move higher; Transocean, Williams stand outOil and gas stocks stake out gains in thin pre-holiday trading, regaining some of the ground lost in Monday's session, as all three of the widely followed sector benchmarks move higher.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:06 pm NewsWatch: U.S. stocks see-saw between gains and loses in light tradeU.S. stocks tilt higher after the government reported an as-expected drop in gross domestic product for the third quarter and as investors pored over data on the troubled housing market.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 5:00 pm Textron shares drop 19% on earnings warning, job cutsTextron Inc. shares plunge 19% in early trades after the company slashes its fourth-quarter earnings estimate, announces more than 2,000 job cuts and says it is exiting most of its commercial-finance business.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 4:57 pm US existing home sales plunge 8.6%The pace of US existing home sales plunged by 8.6 per cent in November, dashing economists' expectations, as buyers retreated from the housing market in spite of falling pricesSource: Financial Times - US homepage | 23 Dec 2008 | 4:55 pm Economic Report: U.S. Nov. existing home fall 8.6%; home-price drop a recordResales of U.S. single-family homes and condos fell 8.6% in November to a seasonally adjusted annual rate of 4.49 million, the National Association of Realtors reported Tuesday, even as home prices fell at the fastest annual pace on record.Source: MarketWatch.com - Top Stories | 23 Dec 2008 | 4:54 pm US economy shrinks as IMF warns of Great Depression (AFP)
Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 4:47 pm U.S. economy shifts into reverseThe gross domestic product, the broadest measure of the U.S. economy, fell by the annual rate of 0.5% in the summer, according to the Commerce Department's final revision, released on Tuesday.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 4:44 pm Rabobank's Stretch Says Dollar to `Gain Traction' Again in 2009Source: Bloomberg - All Podcasts | 23 Dec 2008 | 4:44 pm Oil falls below $39 on U.S. economic downturnLONDON (Reuters) - Oil prices fell below $39 on Tuesday on a string of data confirming U.S. economic downturn.Source: Reuters: Business News | 23 Dec 2008 | 4:40 pm AJMC National / International Monetary Fund LLC (WWW.AJMC-NATIONAL-INTERNATIONAL-MONETARY-FUND-LLC.INFO) Provides Assistance in Specific Areas of the Nation to Establish Strength From WithinWARREN, R.I., Dec. 23 /PRNewswire/ -- The AJMC National/International Monetary Fund LLC focuses on financial access to managed SPOT FOREX accounts, new energy efficiency...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:37 pm Sell-Side Analysts Say Uncertain Economy Is No Excuse for Companies To Suspend Earnings GuidanceMWW Group Survey Finds 76% of Sell-Side Analysts Believe Market Will Penalize Companies that Suspend Earnings Guidance CHICAGO, Dec. 23, /PRNewswire/ -- With year-endSource: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:32 pm Moody's Outlines Default Risks For SIRIUS (SIRI)
This downgrade is showing an increased probability of default rating and lowered its corporate family rating to "Ca" from "Caa1" now. The company's rating outlook is negative and its speculative grade liquidity rating remains positioned at SGL-4, indicating poor liquidity. According to Moody's, "With nearly $1.0 billion of its $3.3 billion total debt coming due in the New Year ($190 million in February, $350 million in May and $433 million in December), and given the current background of capital market dislocation and the company's poor liquidity situation, the rating actions anticipate that Sirius will be unable to repay or refinance its maturing debts without negotiating some sort of compromise arrangement with at least a portion of the affected constituents." Sirius has already initiated transactions to refinance portions of its debt....Moody's considers these transactions as being analogous to a distressed exchange...
Moody's outlined the rest of the cuts, but frankly there is nothing really new here. It just outlines the notion that the overseers are growing more and worried and that their confidence is reflective of today's price. Too bad they had to wait until shares were at $0.12 before the call.
Jon C. Ogg Source: 24/7 Wall St. | 23 Dec 2008 | 4:31 pm Microfinance Leader Makes Multi-million Dollar Investment in Microinsurance CompaniesACCION Invests $4.2m in New Microinsurance Initiatives to Help Move Microfinance Beyond Credit WASHINGTON, Dec. 23 /PRNewswire/ -- ACCION(R) International, a...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:30 pm Grey Wolf Nearly, Finally Merged (GW, PDS, BAS)The shareholders of Grey Wolf, Inc. (NYSE:GW) have overwhelmingly chosen to accept cash instead of stock in Precision Drilling Trust (NYSE:PDS) as consideration for Precision's buyout of Grey Wolf. We've been following the story for some months now, but Grey Wolf shareholders approved the merger this morning and the deed is now done. But for a lot less than everybody originally planned. Precision's original offer was worth $9.02 in cash or 0.4225 of a Precision common unit. The final deal for common units went down at $2.98. That's why the choice of cash was oversubscribed. Grey Wolf shareholders will get some pro-rated portion of $5 cash/share of Grey Wolf stock and 0.1883 of a Precision common unit. If Grey Wolf shareholders had approved a July agreement with Basic Energy Services, Inc. (NYSE:BAS), they would have received better than $7.00 per share. Precision's share price is off nearly 5% this morning, trading at around $6.80/share.
Paul Ausick Source: 24/7 Wall St. | 23 Dec 2008 | 4:28 pm No Gas Cartel in the Near FutureEnergy industry publisher Platts is reporting that the Gas Exporting Countries Forum (GECF) are meeting in Moscow this week, and are expected to sign a framework agreement to set up a natural gas exporters forum. However, the GECF does not plan to form a natural gas cartel similar to OPEC. Essentially what the GECF has done is formalize a loose framework that has existed for many years. The forum will now try to agree on building a permanent office, with staff and all the trimmings. That should be interesting. The leading contenders for the headquarters are Algeria, Qatar, Iran, and Russia. Russia, which has always avoided joining OPEC, has been leading the charge for a strong group of natural gas producers. More than two years ago, Vladimir Putin, then Russia's president, rejected the idea of a natural gas cartel. Cartelization does not appeal to the Russians, especially if they cannot force the cartel to adopt the Russian position. And a natural gas cartel faces a lot of problems. Natural gas has historically been a national or regional commodity. LNG shipments have begun to change that somewhat, but until the LNG spot market is far more liquid than it is today, there won't be an truly global market for natural gas. Without that market, cartel pricing just won't work. That level of liquidity is years away, and the GCEF knows it. Algeria's oil minister puts it this way: "Basically, the [GECF] will be a forward-looking forum and how members can protect their interests in the long term, in terms of getting the best price they can get for the product to ensure that gas is competitive with other products such as gasoil, fuel oil, nuclear power and solar energy."
Paul Ausick Source: 24/7 Wall St. | 23 Dec 2008 | 4:25 pm Exporters meet to create 'gas Opec'Energy ministers from 12 of the world's leading exporters of natural gas met in Moscow to create a group consumers fear could develop into an Opec-style cartelSource: Financial Times - US homepage | 23 Dec 2008 | 4:23 pm Hold your tears for Japan's automakersA fair amount of crocodile tears are being shed on this side of the Pacific over the travails of Japanese automakers.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 4:20 pm Wanted: Phoenix/Tempe Mortgage ProfessionalsLocal Labor Market Continues to Create Jobs Despite Rising Unemployment PHOENIX, Dec. 23 /PRNewswire/ -- While the unemployment rate in Arizona rises to 6.3% with no...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:20 pm PNC and National City Shareholders Approve AcquisitionPNC expects transaction to close on December 31, 2008 PITTSBURGH, Dec. 23 /PRNewswire-FirstCall/ -- The href="http://www.pnc.com">PNC Financial Services Group,...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:18 pm Kitcher Resources Enters Into Merger Agreement With Blue Waters of Key West, Inc.NEW YORK, Dec. 23 /PRNewswire-FirstCall/ -- Kitcher Resources, Inc. (OTC Bulletin Board: KTCH) is pleased to announce that the company has entered into an agreement to...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:17 pm Continental Airlines to Launch Seasonal Service to London/Heathrow From ClevelandReplaces seasonal service to London/Gatwick; seasonal flights to Paris from Cleveland ending CLEVELAND, Dec. 23 /PRNewswire-FirstCall/ -- Continental Airlines...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:15 pm Energy industry braces for ObamaDespite public praise, the energy industry is wary of President-elect Barack Obama's incoming energy team - who will likely call for major changes in the country's energy plan.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 4:11 pm US new home sales at 17-year-lowUS new home sales slow to their lowest level in 17 years, while new home prices drop by the biggest amount in eight months.Source: BBC News | Business | World Edition | 23 Dec 2008 | 4:09 pm Nortel Possible Unit Sale Adds Little Worth (NT)
The genius in management is also exploring options including sales of its carrier networks and its enterprise divisions. Maybe it can plug the pension gap and declining business operations for a few more quarters with the cash. Also this upcoming reverse stock split is nothing to be excited about. Unless you are a short seller. How many reverse splits in the last decade have been a success for the stock. Is it any shock that a former Motorola executive in charge of Nortel would restructure this company into the dirt? Hell no it isn't. If CEO Mike Zafirovski wants to help Nortel out, he'd pack his office up and sneak out between Christmas and New Years. He is one of our 10 CEOs TO GO IN 2009. He can sell this division, he can sell more and more. He has waited beyond the business cycle and now the worth of a sale is too little too late. Nortel is also supposed to have held at least some discussions with the Department of Finance and Industry Canada about assistance. For banks, there is a TARP. We have joked about the auto bailout being a CARP. In Canada, there could be a NARP. Our viewpoint hasn't changed. The company has waited too long and burned too many bridges. Nortel may easily become No-Tel, and that is with unit sales or not. Nortel shares were up more at $0.33 early this morning, but now the gain is only 12% at $0.28. Today's news is really only cause for a gap-and-crap scenario.
Jon C. Ogg Source: 24/7 Wall St. | 23 Dec 2008 | 4:09 pm Home sales, prices in deep plungeThe number of existing homes sold during November plummeted 8.6% as prices plunged by record amounts, according to a closely watched housing industry report issued Tuesday.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 4:07 pm Florida's Existing Home Sales Rise in November 2008ORLANDO, Fla., Dec. 23 /PRNewswire/ -- For the third month in a row, Florida's existing home sales rose in November, with Florida Realtors(R) reporting a 4 percent...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:05 pm Once-in-a-generation sales on investmentsOnce-in-a-generation sales have sprung up in this crazed market.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 4:03 pm Weight-Optimized F-35 Test Fleet Adds Conventional Takeoff and Landing VariantFORT WORTH, Texas, Dec. 23 /PRNewswire-FirstCall/ --Lockheed Martin (NYSE: LMT) rolled out the first weight-optimized conventional takeoff and landing (CTOL) variant of the F-35...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:03 pm Foursquare Recalls Hooded Youth Jackets With Drawstrings Due to Strangulation HazardWASHINGTON, Dec. 23 /PRNewswire-USNewswire/ -- The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the...Source: Infocious RSS raw feed - channel BNewsBusiness | 23 Dec 2008 | 4:01 pm Sanford's big haul in rough seaThe New Zealand sharemarket has been hammered this year by global economic turmoil but one stock not caught in the net is fishing company Sanford. Shares in Sanford closed at $5 yesterday - up 24 per cent for the year to date....Source: New Zealand Herald - Business | 23 Dec 2008 | 4:00 pm NZ halfway through downturn, say economistsThe recession deepened in the three months to September, as demand evaporated in every major sector of the economy except the Government, and economists predict worse to come. Gross domestic product fell 0.4 per cent in the quarter,...Source: New Zealand Herald - Business | 23 Dec 2008 | 4:00 pm NZ dairy farmers check out RussiaA New Zealand accountancy firm is hoping to entice Kiwi dairy farmers to expand their investment horizons through a joint venture into Russia. Staples Rodway director Wade Glass said the firm was approached by Russian businessman...Source: New Zealand Herald - Business | 23 Dec 2008 | 4:00 pm Fran O'Sullivan: Countdown to a worldwide meltdownRight from the start of this year it was apparent the "Goldilocks economy" had given way to the "sandwich economy" - at least as far as New Zealand was concerned - a trend which would ultimately see the savings, spending power and...Source: New Zealand Herald - Business | 23 Dec 2008 | 4:00 pm Ross Bay: Wrong, Gordon - greed is never goodGreed is good, greed is right, greed works, greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed in all of its forms has marked the upward surge of humankind. So declared Gordon Gekko, the character...Source: New Zealand Herald - Business | 23 Dec 2008 | 4:00 pm When mortgage rescues go badThat lenders are ramping up their attempts to help troubled home borrowers stay in their homes is the good news.Source: Business and financial news - CNNMoney.com | 23 Dec 2008 | 3:57 pm SocGen's Hilliard Discusses Foreclosures, New Home SalesSource: Bloomberg - All Podcasts | 23 Dec 2008 | 3:50 pm Stocks hold gains after disappointing housing dataNEW YORK -- Investors were relieved today after a government report on the economy met expectations and eased their concerns that the recession is deepening.Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 3:50 pm IRS: Fry's exec stole $65M to pay gambling debtsSAN FRANCISCO -- A Ferrari-driving vice president of Fry's Electronics Inc. who was allegedly such a heavyweight gambler that casinos chartered private planes to fly him to Las Vegas has been arrested...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 3:48 pm Existing home sales, prices drop at record pace (Reuters)
Source: Yahoo! News: Business | 23 Dec 2008 | 3:44 pm US economy shrinks at fastest rate since 9/11The US economy shrank at its fastest pace in the third quarter since the aftermath of the September 11 attacks, figures released today showed.Source: Latest Business News from Times Online | 23 Dec 2008 | 3:40 pm Wind Turbines, India, and Private EquityLast summer, Suzlon Energy Limited had a nasty problem with its wind turbine blades. Blades shipped to the US started cracking. Then blades sold in the company's home country, India, also started cracking. The WSJ noted that one customer said, "The machines are not fit to handle the wind." That stings. Now, according to Reuters, Mumbai-traded Suzlon wants to raise $500 million, more than half of which the company plans to use to complete the purchase of a majority stake in a German wind turbine maker REPower. But Suzlon can't get its financing in order, and REPower's price target was cut in half last week by HSBC (NYSE:HBC). The HSBC analyst noted the stock performance does not depend on fundamental data but on the potentially complete takeover by Suzlon. But there are no transaction guarantees due to financial limitations at Suzlon, and any deal failure would raise concern. Ahem. Two US private equity firms, The Carlyle Group and TPG Capital, are reportedly looking at investing in Suzlon. Neither commented on the reports. Suzlon is also considering offering debt or selling off some assets. Suzlon appears to be capable of bringing down itself and REPower. It doesn't make much sense for either Carlyle or TPG Capital to join the parade.
Paul Ausick Source: 24/7 Wall St. | 23 Dec 2008 | 3:26 pm Store traffic weak just before holidays (Reuters)
Source: Yahoo! News: Business | 23 Dec 2008 | 3:20 pm Store traffic weak just before holidaysCHICAGO (Reuters) - Just 38.7 percent of Americans went shopping during the final weekend before Christmas, the lowest turnout in at least six years, according to a survey released on Tuesday.Source: Reuters: Business News | 23 Dec 2008 | 3:20 pm New home sales fall 2.9 percent in November (Reuters)
Source: Yahoo! News: Business | 23 Dec 2008 | 3:18 pm November new-home sales drop 2.9 percentWASHINGTON -- Sales of new homes fell in November to the slowest pace in nearly 18 years, while new home prices dropped by the biggest amount in eight months.Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 3:18 pm Madoff investor sues SECPhyllis Molchatsky, a 61-year-old retiree of Valley Cottage, New York, who lost almost $2 million investing with Bernard Madoff, filed an administrative claim for relief against the U.S. Securities and...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 3:16 pm Hosing Housing
Sales of new US homes fell 2.9% to 407,000. That is the lowest level since 1991. The drop was slightly above the 400,000 pace expected by economists surveyed by MarketWatch. Resales of U.S. single-family homes and condos dropped 8.6% in November to a seasonally adjusted annual rate of 4.49 million. Resales are down 10.6% in the past year. Economists surveyed by MarketWatch had expected sales to fall to an annual rate of 4.9 million. In the past year the median sales price fell 13.2% -- the largest decline since data collection began in 1968 and likely since the Great Depression -- to $181,300. There is every reason to think that these figures will not improve in December. Unemployment is rising. Although mortgage rates are well down from earlier this year, running 5.2% for 30-year fixed loans, the criteria for getting a new home loan are extremely tight. Banks can't afford chances. Default and foreclosure rates are still high, which will also keep downward pressure on prices. Those looking for a silver lining won't find it here. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Dec 2008 | 3:10 pm Consumers' mood boosted by lower prices in DecemberNEW YORK (Reuters) - U.S. consumer confidence rose in December due to declining prices, although job losses and falling income continued to weigh on sentiment, a survey showed on Tuesday.Source: Reuters: Business News | 23 Dec 2008 | 3:04 pm Consumers' mood boosted by lower prices in December (Reuters)
Source: Yahoo! News: Business | 23 Dec 2008 | 3:04 pm Economy declined 0.5 percent in third quarterWASHINGTON -- The economy was shrinking in the summer and corporate profits were falling even before the financial crisis struck with full force. Analysts are forecasting that those small declines will...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 2:40 pm Thacher Proffitt is latest US legal casualtyThacher Proffitt & Wood, a 160 year-old New York law firm, has become the fourth US firm to dissolve this year after more than half of its lawyers defected to a rival.Source: Latest Business News from Times Online | 23 Dec 2008 | 2:34 pm Price of stamps set to rise againThe price of first and second-class stamps will rise from next April by 3p respectively, the Royal Mail says.Source: BBC News | Business | World Edition | 23 Dec 2008 | 2:33 pm Homes SickThe slumping housing market cannot find a floor: It is now burrowing into a previously unknown subbasement. The oversupply and the slide in prices means that we have a long way to go before the market adjusts. Falling prices mean that millions more homes will be worth less than the value of the mortgages on them. These homeowners will have to decide whether to continue, in essence, throwing money away to keep to their contract. Others will have lost their jobs and can no longer afford their mortgages. Even more houses will come on the market as result. Baby Steps Master Over Builder Housing Grousing Source: Portfolio.com: Top 5 | 23 Dec 2008 | 2:30 pm GDP shrank in third quarter as economy chilled (Reuters)
Source: Yahoo! News: Business | 23 Dec 2008 | 2:26 pm PC Trends: Notebooks Pass Desktops & Disturbing Apple Trends (AAPL, HPQ, DELL)The good news is that PC sales are not dead if the latest iSuppli data is accurate. But there are some trends in here which are going to revolutionize the PC industry. We have harped on and on about all the low cost notebooks that can be purchased now for under $400.00 about this may wreck many PC and tech business models. Apple Inc. (NASDAQ: AAPL) is also finding itself in a position it is not used to. Worldwide PC unit shipments rose 15% to 79 million units during the Q3 period, which is still impressive considering the slowing economies. The caveat is that this is Q3 data, and it wasn't really until Q4 where the bottom fell out of Joe Q. Public's back pocket. iSuppli is confirming that notebook computers have now surpassed desktops and tower PC's in the third quarter. The Q3 data shows that notebook shipments rose nearly 40% to 38.6 million units and desktop shipments fell 1.3% to 38.5 million units. This trend is one which has been building, but this is the first such inversion. The most notable change is in that of Apple Inc. (NASDAQ: AAPL). It is not a good change. iSuppli noted that the company's market share fell by a half-point from Q2 down to 3.2%. We had previously noted that Apple was seeing some weak sales data. It seems that this was also reflected. Again, this is Q3 data, but it confirms some trends. Apple also has no laptop answer to the sub-$400 laptop market. Even though that would only hurt its margins, the sub-$400 laptop (and other more powerful models for $700) is bringing in many new laptop buyers that were previously excluded from the consumer pool. The order of market share leaders remained the same with Hewlett-Packard Co. (NYSE: HPQ) as the leader, followed by Dell Inc. (NASDAQ: DELL), Acer, Lenovo, and Toshiba. Acer is the one which saw the largest gains. All in all, this reflects the trends we have seen in the computer companies. But this is going to possibly take some enthusiasm out of those who have been "perma-bulls" in the Apple camp. It seems that no companies are immune from the economy. Not even Forrest Gump's fruit company that Captain Dan got him invested in.
Jon C. Ogg Source: 24/7 Wall St. | 23 Dec 2008 | 2:26 pm Putin says 'cheap gas era' endingRussia's Vladimir Putin warns that the era of inexpensive natural gas is coming to an end, in a keynote speech to gas-exporting nations.Source: BBC News | Business | World Edition | 23 Dec 2008 | 2:25 pm Legg Mason's (LM) Bill Miller To Manage Another Fund...WTF?Bill Miller is the Legg Mason (NYSE: LM) money manager, whose two funds have each lost more than 50% this year, has been asked to help run a third fund as the firm tries to halt record outflows. Before we get into the minutiae of the fund that Bill Miller will assist in managing, I just wanted to remind potential investors of some of his recent top stock picks. He loaded up shares of Citi (NYSE: C) and Amazon (Nasdaq: AMZN), but where Bill Miller really fell apart is buying shares hand over fist of Countrywide, Yahoo (Nasdaq: YHOO), American International Group (NYSE: AIG) and Freddie Mac (NYSE: FRE). LM, AMZN, C, YHOO, AIG, FRE Source: 24/7 Wall St. | 23 Dec 2008 | 2:11 pm Mortgage lending 'shrinks again'UK mortgage lending by the major banks has fallen sharply with approvals for house purchases 60% lower than a year ago.Source: BBC News | Business | World Edition | 23 Dec 2008 | 2:09 pm AIG moves closer to selling Filipino unitThe stricken US insurer has moved a step closer to selling its Philippine unit, believed to be worth up to $1bn, after releasing a detailed information memorandum to potential buyersSource: Financial Times - US homepage | 23 Dec 2008 | 1:56 pm Q3 GDP Revisions Final Failure
Corporate profits after taxes were revised lower to -3.2% to roughly $1.3 trillion in the July through September Q3 period. Consumer spending was revised to a tad worse -3.8% in Q3, which accounted for 2.75 points of the drop in GDP. Durable goods spending by consumers was down 14.8%. You can look further and further into the numbers, but if you want a decent holiday season we'd advise you not to. That was also just the real start of it to show up in the numbers, so what lies ahead should reflect the far-worse numbers we have been seeing over the last 75 days or so. What is far more important than revision after revision is what is expected for Q4. We have heard that estimates are running as deep as -6% from many. There will be many changes to those numbers, particularly after we start to see actual earnings in mid-January from key companies. The new acronym for "GDP" during the holiday season is, "Got Depression Presents?"
Jon C. Ogg Source: 24/7 Wall St. | 23 Dec 2008 | 1:42 pm EU approves UK finance measuresThe European Commission gives the go ahead for British government changes to its support package for the banking sector.Source: BBC News | Business | World Edition | 23 Dec 2008 | 1:37 pm Tory Treasurer Michael Spencer admits using £15m Numis stake to secure loanMichael Spencer, Treasurer of the Conservative Party and one of the City’s richest men, has had to admit he has pledged a parcel of shares worth about £15 million in a company which he chairs to a bank as security to a loan without informing the stock market.Source: Latest Business News from Times Online | 23 Dec 2008 | 1:33 pm IMF criticises the UK's VAT cutThe International Monetary Fund's chief economist says the UK's cut in VAT is unlikely to influence consumer spending.Source: BBC News | Business | World Edition | 23 Dec 2008 | 1:27 pm Don't They Know It's Christmas?Watch in January for some store chains to file for bankruptcy protection, for thousands and thousands of retail jobs to be eliminated, and for the kinds of deep-discounted sales that might lead you to think that other stores are going out of business. The final revision to the third-quarter gross domestic product today confirmed the slowdown in consumer spending. In the three months that ended September 30, consumer spending shrank 3.8 percent. It was the biggest contraction since 1980, when the economy was roiled by oil price shocks. Shopping Takes a Holiday Shall We Call it Cyber Friday? Online Holiday Shopping Looking Grim Source: Portfolio.com: Top 5 | 23 Dec 2008 | 1:00 pm 'Coup bid' in Guinea after president diesThe death of Guinea's long-serving president has plunged the world's leading bauxite producer into uncertainty as the president of the national assembly said an attempted coup was under way after a group of army officers said the constitution and the government had been suspendedSource: Financial Times - US homepage | 23 Dec 2008 | 12:56 pm Ex-PM charged with solving Belgian crisisWilfried Martens, a former PM, has been handed the unenviable task of finding a solution to Belgium's latest political crisis after the government resigned over accusations officials tried to prevent a court ruling blocking the dismantling of FortisSource: Financial Times - US homepage | 23 Dec 2008 | 12:42 pm Wal-Mart starts $2.66 billion tender offer for Chile's D&SSANTIAGO (Reuters) - No. 1 global retailer Wal-Mart launched on Tuesday its $2.66 billion tender offer for all of the issued and outstanding shares, including American Depositary Shares, of Chile's leading supermarket D&S.Source: Reuters: Business News | 23 Dec 2008 | 12:42 pm Whittard collapses as EPIC plans a dealErnst & Young has put tea and coffee chain Whittard of Chelsea into administration this afternoon while the accountancy firm is racing to complete a deal to sell the bulk of the stores to a private equity firm.Source: Latest Business News from Times Online | 23 Dec 2008 | 12:39 pm The fallen giants of financeA look at the most powerful players in the financial crisisSource: Financial Times - US homepage | 23 Dec 2008 | 12:19 pm Contraction of UK economy speeds upThe UK economy shrank faster than previously thought between July and September, official figures show.Source: BBC News | Business | World Edition | 23 Dec 2008 | 11:55 am Last-minute increase in shoppersThe number of shoppers on UK High Streets grew on Monday, compared with the corresponding Monday in 2007, new figures show.Source: BBC News | Business | World Edition | 23 Dec 2008 | 11:46 am UK mortgage approvals fell to record low in Nov. (AP)AP - British mortgage approvals fell to their lowest level since at least 1997 in November as buyers were deterred by falling house prices and fears that the economic slowdown will hit their budgets, the British Bankers' Association (BBA) said Tuesday.Source: Yahoo! News: Business | 23 Dec 2008 | 11:15 am UK current account deficit widens to £7.72bnThe gap in Britain’s balance of payments widened from July to September, it was confirmed today, despite the growing weakness of sterling.Source: Latest Business News from Times Online | 23 Dec 2008 | 10:53 am Manic Monday brings a little cheer to high streetFestive cheers have arrived belatedly on the high street as official figures showed the number of shoppers rose sharply yesterday.Source: Latest Business News from Times Online | 23 Dec 2008 | 10:41 am Whittards faces administrationThe 132-store Whittard of Chelsea chain of specialist tea and coffee retailers, also known for its quirky tea pots and mugs, was on Tuesday facing administration as talks between Baugur, its Icelandic...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 10:35 am Hong Stock index drops 2.8 percent (AP)AP - Hong Kong's key stock index dropped 2.8 percent on Tuesday as a lower-than-expected cut in Chinese interest rates led investors to unload shares in financial companies.Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 10:30 am London shares stable in opening trading (AFP)
Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 8:30 am Premiere prepares to launch 450m rights issueFRANKFURT, Dec 23 - German pay-TV broadcaster Premiere said on Tuesday it reached agreement with its banks and main shareholder News Corp on a debt restructuring, conditional on raising fresh cash from...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 8:20 am Oil falls below $40 on renewed demand worries$Oil prices continued to trade below $40 a barrel this morning, weighed down by further signs of weakening global energy demand. The price of a barrel of US crude for delivery in February slipped 51 cents to $39.40 a barrel.$Source: Latest Business News from Times Online | 23 Dec 2008 | 8:14 am China's Shanghai stock index falls 4.6 pct (AP)AP - Chinese stocks fell Tuesday as investors disappointed over a meager interest rate cut, and worried over its potential impact on banks' balance sheets, dumped financial shares and other heavyweights.Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 8:00 am China's Shanghai stock index falls 4.6 pct (AP)AP - Chinese stocks fell Tuesday as investors disappointed over a meager interest rate cut, and worried over its potential impact on banks' balance sheets, dumped financial shares and other heavyweights.Source: Yahoo! News: Business | 23 Dec 2008 | 8:00 am Fry's executive held on embezzlement chargesThe IRS says Ausaf Umar Siddiqui, a vice president of the electronics retailer, cut side deals with some suppliers that netted him more than $65 million. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 8:00 am Shoppers bring haggling skills to the mallCustomers are asking for and receiving partial refunds on sale items, extended return policies and on-the-spot discounts as retailers try desperately to make cash registers ring. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 8:00 am Stocks fall after Toyota cuts profit outlookNEW YORK (AP) -- Wall Street began a holiday-shortened week with a moderate pullback Monday as investors recoiled at bleak news from Toyota Motor Corp. and drugstore operator Walgreen Co.Source: Infocious RSS raw feed - channel BNPaperBusiness | 23 Dec 2008 | 8:00 am Madoff investor seeks relief from SEC: report (Reuters)
Source: Yahoo! News: Stock Markets News | 23 Dec 2008 | 7:15 am Australian stocks: Market closes slightly lowerMELBOURNE - The Australian share market slipped in the red to close around 0.7 per cent lower, led down by weaker major mining stocks. At 1615 AEDT, the benchmark S&P/ASX200 index was down 26 points, or 0.73 per cent, to 3,531.4,...Source: New Zealand Herald - Business | 23 Dec 2008 | 7:06 am NZ stocks: Market suffers slight dipSizeable falls among the blue chip stocks weighed on the sharemarket today, with some moderate gains for second-tier stocks unable to lift the mood. The benchmark NZSX-50 index closed down 18.01 points, or 0.67 per cent, to 2661.74,...Source: New Zealand Herald - Business | 23 Dec 2008 | 6:36 am Currency: Dollar softens on weak economy dataThe New Zealand dollar softened today after data confirmed the economy had headed further into recession, but the news was as expected and created little excitement. By 5pm, the kiwi had eased a touch to US57.47c from US57.60c...Source: New Zealand Herald - Business | 23 Dec 2008 | 5:38 am Smart Money, R.I.P.Hedge funds. Private equity. Bill Miller. Yale. Ken Griffin. Stephen Feinberg. Harvard. Palm Beach wealth. Goldman Sachs. Sam Zell.The ninth year of the 21st century officially marked the end of this era's "smart money." Every cycle has its winners and losers, but this global economic retraction has left the two columns decidedly lopsided. While 2007 officially ushered in the subprime crisis and the U.S. economic recession, it was 2008 that chewed up the smartest investors and spat them out with glee. Beginning with the collapse of Bear Stearns in March and ending with the Bernard Madoff scandal in December, almost no billionaire investor survived this ruthless year unscathed. What drove the smart money to the top of their game is ultimately what pushed them down: their committed drive for alpha, or greater returns relative to the risk taken. Hedge funds were supposed to outperform any market by hedging their bets. Private equity practically guaranteed returns by taking on significant leverage at discounted prices. Investment banks were going to profit by spreading subprime risk around with their mortgage securitizations. Warren Buffett was going to profit by investing when the market signaled a bottom. Nothing doing. Turns out you have to be more than just "in it" to "win it." While the cruel market of 2008 clobbered even the least risky investors, it is the most spectacular collapses that never cease to amaze. Even the managers of endowments at Harvard and Yale, long considered pillars of wisdom among the investing elite, have come clean with strategies that now no one wants to replicate. Bill Miller, formerly known as a masterful value investor who produces steady, consistent gains in his popular Legg Mason mutual funds, made a series of near fatal investment decisions in 2008. By buying more and more shares of battered financial stocks like American International Group, Wachovia, and Freddie Mac as they fell from the sky, Miller's definition of "cheap stock" took on a whole new meaning. "I was naïve," he now acknowledges. The carnage goes on and on. Citadel's Ken Griffin was once known as "the most feared man on Wall Street" with his multi-billion dollar payday and the constant speculation that his firm would soon go public. In 2008, he was forced to halt withdrawals at his two biggest funds after they fell by 50 percent. Citadel also shuttered its Tokyo office and laid off half the staff in its Hong Kong operations. Other investors who were aggressively climbing their way up the smart money ladder had their knuckles pounded so relentlessly that they had no choice but fall to the ground. No matter what he does in the future, Sam Zell will always be remembered for his foolish and tragic Tribune deal. And Eddie Lampert? No one will ever make the mistake of comparing him to Warren Buffett again. And speaking of the Oracle of Omaha, even he made enough minor missteps in 2008 that the annual Berkshire Hathaway shareholders meeting next year may feature just a bite or two of humble pie. And Cerberus! Oh, Cerberus. Your three-headed dog did nothing to scare off the demons on Wall Street this year. Between your ownership of nearly bankrupt Chrysler and your majority ownership of G.M.A.C., things really couldn't have been much worse in 2008. In fact, your portfolio is so rotten, the media hardly made note of the fact that the Japanese lender you own, Aozora Bank, may have lost $137 million in the Madoff scheme. Hedge funds generally took a beating this year, with the Marc Dreier and Bernard Madoff scandals producing a swift, one-two kick out the door. Private equity may have fared a bit better in 2008, but that's only because it takes so long to destroy assets that are locked up for many years. Of course, average investors also took it on the chin by the vicious oh-eight, but it was the smart money that was supposed to consistently perform well in both good times and bad. Perhaps it's fitting that the gigantic Madoff unraveling took place at the end of the year, as if to remind everyone that it really is okay to lose money every now and again. Just imagine the skepticism if Yale and Harvard had produced their typically magical 25 percent returns this year. Smart money fails, but it will inevitably rise again with new names in the marquee lights. And when it does, the ninth year of the 21st century will no doubt be a distant memory in investors' minds. Related Links Insider Trading Suspects Settle Up The Shears are Out Rewarding the Losers Source: Portfolio.com: Top 5 | 23 Dec 2008 | 5:00 am It's a Wonderful ThoughtOver the years, Frank Capra's It's a Wonderful Life has become a Christmas classic—a heartwarming, eye-watering parable about virtue being its own reward.The story of George Bailey, the big-hearted proprietor of Bailey Savings & Loan, is morally uncomplicated. Bailey is a generous lender and lenient collector; his rival, a miserly, hard-hearted millionaire banker named Henry Potter is an unrepentant villain who derides Bailey for his lack of business acumen and lax lending standards. But knowing what we know now, about the dangers of subprime mortgages and the virtues of disciplined bankers, perhaps it's time to reconsider the financial—if not the sentimental—lesson of It's a Wonderful Life. In short: Was George Bailey a reckless subprime lender? Was Henry Potter a sober, misunderstood businessman? The difference between the two men is captured in one particularly memorable scene, in which civic leaders of the small town in which the movie is set discuss the recent death of George Bailey's saintly father, Peter. He'd founded the savings and loan, and was as generous as his son. POTTER Peter Bailey was not a businessman. That's what killed him. Oh, I don't mean any disrespect to him, God rest his soul. He was a man of high ideals, so-called, but ideals without common sense can ruin this town. (Picking up papers from table.) Now, you take this loan here to Ernie Bishop...You know, that fellow that sits around all day on his brains in his taxi. You know...I happen to know the bank turned down this loan, but he comes here and we're building him a house worth five thousand dollars. Why? GEORGE Well, I handled that, Mr. Potter. You have all the papers there. His salary, insurance. I can personally vouch for his character. POTTER (Sarcastically) A friend of yours? GEORGE Yes, sir. POTTER You see, if you shoot pool with some employee here, you can come and borrow money. What does that get us? A discontented, lazy rabble instead of a thrifty working class. And all because a few starry-eyed dreamers like Peter Bailey stir them up and fill their heads with a lot of impossible ideas. Now, I say...Related Links Hedge Funds to Deliver Eviction Notices Source: Portfolio.com: Top 5 | 23 Dec 2008 | 5:00 am Passenger numbers down at Auckland AirportPassenger numbers fell at Auckland International Airport last month, as the global economic crisis hit both international and domestic travel. That was despite a 7 per cent increase in international flights compared with a year...Source: New Zealand Herald - Business | 23 Dec 2008 | 3:30 am Metlifecare to suspend dividend, raise fundsRetirement village operator Metlifecare is hoping to strengthen its balance sheet by suspending its dividend payment and raising up to $40 million in new shares. Metlifecare's 82-per cent shareholder, Retirement Villages New Zealand,...Source: New Zealand Herald - Business | 23 Dec 2008 | 2:30 am Shareholders set to vote on US bank dealsStockholders are expected to favour two bank deals forged at the height of the financial crisis, helping mark the end of a year of changes for the US banking industrySource: Financial Times - US homepage | 23 Dec 2008 | 2:07 am Mortgage activity surges at US banksBanks are having trouble dealing with a flurry of mortgage applications, after record loan defaults and job cuts have stretched resources to the limitSource: Financial Times - US homepage | 23 Dec 2008 | 12:48 am Fiat pays $10.6m in Iraq settlementItalian carmaker agrees settlement with SEC over kickbacks paid to Saddam Hussein regime under the oil-for-food programmeSource: Financial Times - US homepage | 23 Dec 2008 | 12:44 am In Brief - MondayPPG Industries (PPG), a paint and chemicals maker, forecast Q4 EPS of 35-45 cents, well below views of 72 cents. Shares fell 4.2% to 39.71.Source: Investor's Business Daily: BUSINESS | 23 Dec 2008 | 12:16 am Business Briefs - MondayAaron Rents rises as buying ebbs. The rent-to-own chain raised its '09 EPS outlook by a nickel to $1.70-$1.85, the midpoint above views for $1.74....Source: Investor's Business Daily: BUSINESS | 23 Dec 2008 | 12:16 am After The Close - MondayCIT GROUP (CIT), a commercial finance firm, received the Fed's OK to become a bank holding company, clearing the way for CIT to get up to $2.5 bil...Source: Investor's Business Daily: BUSINESS | 23 Dec 2008 | 12:16 am Alternative Energy, Medical Technologies Head List Of Likely IPOsThe initial public offering calendar remains empty, but smart investors always keep an eye on the future. What's going on farther up the pipeline?Source: Investor's Business Daily: BUSINESS | 23 Dec 2008 | 12:16 am Trends & Innovations - MondayYoung Americans watch less TVSource: Investor's Business Daily: BUSINESS | 23 Dec 2008 | 12:16 am Warner Music doesn’t want to share its videos on YouTube any moreMadonna, James Blunt and Estelle began disappearing from YouTube yesterday in a row that raises uncomfortable questions about the viability of the video-sharing website’s business.Source: Latest Business News from Times Online | 23 Dec 2008 | 12:05 am EDF concessions leave Centrica to rethinkCentrica may reduce the £3.1 billion offer that it has made to EDF for a 25 per cent stake in British Energy after European regulators placed strict conditions on the French group's takeover of the nuclear generator.Source: Latest Business News from Times Online | 23 Dec 2008 | 12:00 am Commission's timely power playThe Government received a small Christmas present from Brussels yesterday when the European Commission gave its conditional approval for Electricité de France to buy British Energy.Source: Latest Business News from Times Online | 23 Dec 2008 | 12:00 am Tynan of Argus Research Says Auto Bailout Equates to BankruptcySource: Bloomberg - All Podcasts | 22 Dec 2008 | 10:48 pm Hear: Scenes From A Recession
Click for full picture. Christopher DaelToday on Planet Money: -- Adam Davidson visits Frank Caracciolo, owner of the Universal Printing Company in Brooklyn, New York. Carcciolo says business is down, but you may be suprised at who's still buying big. -- Listener Christopher Dael of Riverside County, Calif., says his local mall's tree looks nothing like the ones in years' past. What's up with that? (The 2006 tree is after the jump. -- Putting off the purchase of a big flat-screen TV? You're not alone. Chana Joffe-Walt of KPLU says the decline in sales is having an unexpected -- and unwelcome -- effect on recycling. Download the podcast; or subscribe. Intro music: Carl Douglas' "Kung Fu Fighting." Find us: Twitter/ Facebook/ Flickr. Christopher Dael forwarded this image of the Christmas tree at the same mall, from two years back. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Dec 2008 | 10:40 pm Hartzell Says ETFs Provide `Cushion' In Volatile MarketsSource: Bloomberg - All Podcasts | 22 Dec 2008 | 10:22 pm VIX Index of U.S. Stock Option Prices Retreats 1% to 44.56Source: Bloomberg - All Podcasts | 22 Dec 2008 | 10:19 pm Housing crisis worsens as economy weakens (Reuters)
Source: Yahoo! News: Business | 22 Dec 2008 | 9:12 pm Are You Stimulated?For many businesses, Christmas may come in January, when Congress is expected to pass an economic stimulus package containing billions of dollars in new spending and tax breaks. Finally, Drama! A Geithner vs. Bair Clash? When Monetary Policy Is Fiscal Policy Incentives for Inflation Source: Portfolio.com: Top 5 | 22 Dec 2008 | 9:00 pm Analyst McGranahan Says Retail Closings Are a CertaintySource: Bloomberg - All Podcasts | 22 Dec 2008 | 8:51 pm Market reforms transform ShenzhenThirty years ago this month, Chinese leaders used the small fishing village of Shenzhen to test free-market principles. The experiment paid off as foreign investors poured in, making the city China's richest. But big challenges may be ahead for Shenzhen. Scott Tong reports.Source: Marketplace | 22 Dec 2008 | 8:34 pm Harvey Pitt Says Madoff Scam Will Be `Mess' to UnwindSource: Bloomberg - All Podcasts | 22 Dec 2008 | 7:59 pm Listener Thwacks UsSylvia in Wilmington heard the podcast last week in which we called Chrysler's plans to shut down for a month a sign the economy is still contracting. She writes: [The podcast] mentioned the one-month auto shutdown. It did NOT mention that at this time of year there is normally a 2-week shutdown, so the incremental shutdown, while bad, is not one month. it also did not discuss the possibility that this is a tactical move on the part of the auto industry--- see what will happen if you dont bail us out, want some more?-- like Clintons government shutdown which served admirably to get Gingrich to quit fooling around and play ball. Just a couple of short phrases touching on these two things would have gone a long way toward more credible reporting. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Dec 2008 | 7:26 pm Financial products need new regulationThe crash of the financial markets and the pile up of investment scams have some people asking -- Where were the regulatory agencies in all of this? Commentator Amelia Tyagi says financial products need to be regulated as strictly as the drug, toy and cosmetic industries to prevent further meltdowns.Source: Marketplace | 22 Dec 2008 | 7:15 pm Listener Finds Mall Empty
Seen in California. Dave writes that he and his girlfriend went shopping in San Francisco's North Bay this weekend and found an outdoor mall deserted. Where, he wondered, were the people? And what will become of the stores? He writes, "[I] feel odd about highlighting what must be a devastating time for them." » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 22 Dec 2008 | 7:09 pm Fiat settles SEC case for over $10 million (Reuters)
Source: Yahoo! News: Stock Markets News | 22 Dec 2008 | 6:47 pm Madoff Defies GravityThe Bespoke Investment Group charts the returns on a single dollar invested with Bernie Madoff. Let's just say it puts a new spin on vertical integration. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Dec 2008 | 6:43 pm Lombard's Dumas Says Market Tone Is Now `Modestly Positive'Source: Bloomberg - All Podcasts | 22 Dec 2008 | 6:40 pm Florida family lives the simple lifeBeth and Scott Greenlee were living the middle-class life in Connecticut. But after Scott was laid off, the family was forced to change their lifestyle. Katie Ball reports on how it's the simple things that matter for the Greenlees now.Source: Marketplace | 22 Dec 2008 | 6:25 pm The state of commercial real estateGeneral Growth Properties, one of the nation's largest mall owners, got some help from its lenders this week when they agreed to a forbearance. But, such a move is rare. What about the rest of the commercial property industry? Tess Vigeland speaks with professor Susan Wachter about the rocky road ahead for the commercial real estate industry.Source: Marketplace | 22 Dec 2008 | 6:18 pm Laid-off employees get litigiousEmployers hoping to cut costs are laying off workers across the nation. But laid-off employees who feel they've been wrongfully terminated aren't going down easily. They're fighting back -- with workplace discrimination lawsuits. Mitchell Hartman reports.Source: Marketplace | 22 Dec 2008 | 6:18 pm Tech workers forced to take holidayTech companies feeling the effects of the recession are forcing employees to stay home for the holidays. Janet Babin reports on the forced furloughs some companies are making their white collar workers take.Source: Marketplace | 22 Dec 2008 | 6:18 pm Are money market funds in trouble?Money market funds, cash invested in short-term debt, used to be pretty reliable places for investors who wanted to get moderate returns. But with interest rates near zero, yields on funds are tumbling. Jeremy Hobson reports.Source: Marketplace | 22 Dec 2008 | 6:18 pm DiBartolomeo Knew Madoff's Returns Were Amiss 10 Years AgoSource: Bloomberg - All Podcasts | 22 Dec 2008 | 6:17 pm Former U.S. Prosecutor Hochberg Sees Jail Sentence for MadoffSource: Bloomberg - All Podcasts | 22 Dec 2008 | 6:12 pm Can Hedge Fund Wealth Vanish?You asked about hedge funds. Columbia University professor Wei Jiang has delivered, with a first round of answers. We'll be posting more questions and answers in the days to come. For now.... In the last few years a number of the new names to Fortune's "Richest people" list were hedge fund managers. All of the people on the list had over $1 billion net worth. Why/how are the hedge fund managers raking in so much money? Are their earnings stable/permanent, or might they evaporate like so much other "wealth" has lately? Prof. Jiang writes: A hedge fund manager is compensated with both management fees (as a percentage of assets under management, 70 percent of the hedge funds charge between 1 percent and 2 percent), and a performance fee (as a percentage of returns in excess of benchmarks -- more than 60 percent of the hedge funds charge between 20 percent and 25 percent). The 10 largest hedge funds managed more than $20 billion dollars in 2007, and in a good return year, these people indeed can be loaded. However, there are more than 10,000 hedge funds in the U.S. , and only a handful of the hedge fund managers made to Fortune's list. The median hedge fund managed less than $100 million in early 2007 (before the trouble started), and the median hedge fund barely beats the benchmark (because it cannot be that everybody is above the average, which is the market return). A median hedge fund would earn a total fee close to $2 million, with which it would have to cover system cost, research, and salaries (of a whole team), etc. Personally, I don't believe the exorbitant earnings of some hedge fund managers are permanent or sustainable. Early this year, Warren Buffett challenged hedge funds to bet on their beating the S&P500 over the next 10 years. I am betting with Warren Buffett (I am mostly investing with Vanguard index funds). Of course, in any given year, out of 10,000 hedge funds, even just by sheer luck some of them will yield phenomenal returns, making investors happy even after the handsome fees. Would you please address the tax implications for the investors both who make money and are defrauded? This sounds more like a blind trust than a rational investment strategy. Are most people in hedge funds individuals? Can there be public retirement funds tied up there, too? Profesor Jiang writes: If you were asking about the alleged Madoff Ponzi scheme, it would be bad news for investors who thought that they made money by investing with Madoff and who might already have consumed the "profits" they received from the fund. If it could be proved that their "profits" were actually coming out of later investors' principal, they could be asked to return the money! Of course, they could file amended returns and get back the tax they paid on those gains. Hedge funds are open both to institutions and "high net-worth" individuals. The larger the hedge funds, the higher percentage of institutional money. Among the 10 largest hedge funds, institutional money makes up between 75 percent and 100 percent of the total. Smaller hedge funds and funds that are part of hedge funds are more likely to court individuals. The minimum investment requirement is a good indication of whether the fund is primarily targeting institutions or individuals. In recent years, it has been common for public retirement funds to allocate money to "alternative investment." Some pension funds (one employee pension fund from a Connecticut town and a state pension fund in Massachusetts) are caught up in the Madoff case. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Dec 2008 | 6:04 pm
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