Amid gloom, Russian reserves post record rise

MOSCOW (Reuters) - Russia's gold and foreign exchange reserves rose by a record $15.4 billion in the latest week thanks to a stronger euro and a rise in commercial banks' foreign currency...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 2:12 pm

NewsWatch: Obama has the most work cut out for him in one area: jobs

As the recession rolls on, keeping workers at work may be President-elect Barack Obama’s toughest job.

Source: MarketWatch.com - Top Stories | 25 Dec 2008 | 2:00 pm

French shareholders want list of Madoff losses

A group of French shareholders is pressing the government to release a list of French funds exposed to losses from alleged fraud by Wall Street money manager Bernard Madoff. SOS Petits...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 1:43 pm

Luxury brands a tough sell in wealthier India

MUMBAI (Reuters) - On a recent evening at a luxury Mumbai hotel, shoppers tried on sequined sandals and handmade moccasins at Joy Shoes, an Indian family business that has sold out of its only shop for nearly 70 years.
Source: Reuters: Business News | 25 Dec 2008 | 1:05 pm

UPDATE 1-India Reliance startup makes biggest fuel complex

MUMBAI, Dec 25 (Reuters) - Reliance Industries Ltd on Thursday began processing crude oil at a new refinery in western India, almost doubling company output and creating the world's biggest refining complex...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 12:59 pm

More UK consumers make last-minute shopping trips: report

More U.K. consumers made last-minute rushes to the stores before the Christmas holiday, prompting retailers to keep their doors open later on Christmas Eve and enabling them to limit discounting, the market-research firm Synovate reported.

Source: MarketWatch.com - Top Stories | 25 Dec 2008 | 12:40 pm

UPDATE 1-Nippon Oil plans Jan crude refining down 25 pct y/y

TOKYO, Dec 25 (Reuters) - Nippon Oil Corp plans to refine 3.95 million kilolitres (801,000 barrels per day) of crude oil in January to meet domestic demand, down 25 percent from a year earlier, reflecting...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 11:46 am

CNOOC may slow or delay projects on oil slump-source

BEIJING, Dec 25 (Reuters) - China offshore oil specialist CNOOC Ltd is reevaluating its operational activities and is likely to scale down or delay some projects as slumping oil prices threaten to invalidate...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 11:00 am

Chinese stocks fall to seven-week low

China's stocks fell to a seven-week low Thursday amid gloom about weakening corporate profits and a worsening economic decline. The benchmark Shanghai Composite Index shed 0.61 percent,...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 10:44 am

Chinese stocks fall to seven-week low (AP)

AP - China's stocks fell to a seven-week low Thursday amid gloom about weakening corporate profits and a worsening economic decline.
Source: Yahoo! News: Stock Markets News | 25 Dec 2008 | 10:44 am

China mulling stimulus for automakers: report

China's National Development and Reform Commission is drafting a stimulus package to prevent a U.S.-style crisis in the mainland’s automobile industry, according to a published report Thursday.

Source: MarketWatch.com - Top Stories | 25 Dec 2008 | 10:35 am

Authority: Siege cost Thai airports $6 million

Thailand's airport authority said Thursday it lost almost $6 million after agreeing to waive fees for airlines and store owners reeling from an eight-day blockade of Bangkok's airports by...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 10:34 am

Chinese dairy in milk scandal faces $160M debt

The dairy at the center of China's tainted milk scandal has about $160 million in debt, state media reported Thursday, a day after the company confirmed it was bankrupt. Xinhua News...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 10:30 am

Toyota founding family scion dodges succession issue (Reuters)

Reuters - Toyota Motor Corp (7203.T) Executive Vice President Akio Toyoda declined on Thursday to discuss the possibility of his taking over as president after media reports he could fill the post as early as April.

Source: Yahoo! News: Business | 25 Dec 2008 | 10:22 am

Toyota founding family scion dodges succession issue

TOKYO (Reuters) - Toyota Motor Corp Executive Vice President Akio Toyoda declined on Thursday to discuss the possibility of his taking over as president after media reports he could fill the post as early as April.
Source: Reuters: Business News | 25 Dec 2008 | 10:22 am

Toyota founding family scion dodges succession issue

TOKYO (Reuters) - Toyota Motor Corp Executive Vice President Akio Toyoda declined on Thursday to discuss the possibility of his taking over as president after media reports he could fill...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 10:22 am

Retail Falls Completely Apart (SHLD)(GPS)(M)

Bricks-and-mortar retail sales were predicted to be down by 5% or so this year. At companies like Sear (SHLD), Gap (GPS), and Macy's (M), which have been suffering for several quarters, the fall-off might drop into the low double-digits.

In November and early December, these estimates were holding up, but the last few days shopping activity has been crushed.

According to Bloomberg, "Customer visits to U.S. retailers fell 24 percent last weekend compared with a year earlier, the biggest drop on record, as deepened discounts failed to attract consumers." The figures were issued by research firm ShopperTrak RCT Corp.

Trying to understand a plunge of that magnitude is nearly impossible. It strengthens the concern that some of the weaker retail chains will simply disappear next year as their revolving credit lines hit their limits and they are left with hundreds of millions of dollars of unsold inventory which may be impossible to move out at any price in January.

The data also indicate that the contraction in consumer spending is accelerating. Job loss and the inability of most citizens to get credit may be forcing the retail customer into a hole, and he may not jump back out after Groundhog Day.

There may be a silver lining to the news. Five years of economic prosperity has allowed stores to open more outlets each year. Even relatively weak retailers could make a go of it as shoppers had tremendous access to credit because of the rising equity in their homes and bank lending practices.

The fall of retailers that never really had businesses that could survive outside of the most robust times will mean the firms which are left should face less competition for both customers and pricing. Watching the industry fail is a hell of a way to stay in business.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Dec 2008 | 10:06 am

Haldex to sell auto-wire unit to Suzuki Metal for $100.5 million

Haldex AB agreed to sell its Garphyttan Wire division for 800 million Swedish kronor ($100.5 million) to Suzuki Metal Industry Co.

Source: MarketWatch.com - Top Stories | 25 Dec 2008 | 9:59 am

UPDATE 1-Thai PTT sees steady net profit in 2009

BANGKOK, Dec 25 (Reuters) - PTT PCL , Thailand's top oil and gas firm, expects revenues to rise in 2008 but sees net profit dropping from last year's 97.8 billion baht ($2.82 billion) due to losses from...
Source: RSS feed - channel BNewsBusiness | 25 Dec 2008 | 9:53 am

Shorts Up Bets Against Healthy Banks And Big Industrials, Move Out Of Tech (AAPL)(C)(GE)(F)(INTC)(MSFT)(YHOO)

If investors had a notion that short sellers were going to stay in big financials, they were wrong. Short interest in the weakest companies in the sector dropped. Share short in Citigroup (C) fell 22% to 142.6 million shares. Shares short in CIT (CIT) were down 13% to 49.5 million. The short interest in AIG (AIG) dropped 4% to 135.6 million. Short interest in NCC (NCC) moved off 17% to 24.2 million shares. Share short in Bank of America (BAC) were down 4% to 105.4 million even though many analysts believe the company will have to raise money.

The focus of the short sellers moved to the healthy financial firms on bets that they will sell off like their less successful peers. Shares short in JPMorgan (JPM) rose 29% to 5.2 million. The short interest in Wells Fargo (WFC) was up 7% to 133.2 million.

Short sellers jump into stock in big industrials. Shares sold short in GE (GE) were up 34% to 106.4 million. The short interest in Ford (F) moved higher by 7% to 268.5 million.

In the tech sectors, short sellers made a retreat. Shares short in Intel (INTC) moved down 6% to 98.6 million. The short interest in Comcast (CMCSA) was fell 19% to 78.3 million. Short interest in Microsoft (MSFT) fell 3% to 72.1 million shares.

Shares short in Oracle (ORCL) dropped 17% to 47.9 million and the short interest in Yahoo! dropped 8% to 40.9 million. Shares short in Sun (JAVA) fell 5% to 29.7 million and the short interest in Symantec (SYMC) fell 10% to 29.6 million.

The short interest in Apple (AAPL) dropped 3% to 21.3 million shares.

Data from NASDAQ and NYSE

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Dec 2008 | 9:03 am

Asia Markets: Tokyo stocks edge up, Shanghai drops a 4th session

Japanese shares end higher in light trading Thursday, after Wall Street advanced in a shortened Christmas Eve session, with Toyota Motor Corp. lifted by bargain buying after four days of declines and energy-related stocks jumping despite a sharp overnight fall in crude-oil prices. The region is mixed, however, with Shanghai-listed stocks taking losses to a fourth session.

Source: MarketWatch.com - Top Stories | 25 Dec 2008 | 8:50 am

Media Digest 12/25/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, as the recession is spreading countries are increasing spending in an attempt to revive economies.

Reuters reports that GMAC got federal approval to be a bank holding company.

Reuters writes that The New York Times (NYT) may sell its piece of The Boston Red Sox to raise money.

Reuters reports that oil dropped 9% due to the widening recession.

Reuters reports that consumers are cutting spending and the outlook for jobs is bleak.

Reuters writes that short interest on NASDAQ and the NYSE fell.

Reuters writes that core inflation fell in November but there was no deflation.

Reuters reports that RIM (RIMM) sued Motorola (MOT) for blocking job offers.

Reuters reports that the slump in corporate profits is seen running well into 2009.

Reuters reports that home prices may rise due to the refinancing boom.

The Wall Street Journal reports that falling gas prices are helping consumers during the recession.

The Wall Street Journal reports that Chrysler plans huge cost cuts.

The Wall Street Journal reports that YRC was seeing a large slump in shipping.

According to The New York Times "Foot traffic at retail stores declined 23.7 percent and sales fell 5.3 percent compared with a year ago, according to the research firm ShopperTrak."

The New York Times reports that the market for corporate jets in in free fall.

The FT reports that the S&P 500 is set to end the year 40% lower.

Blooomberg reports that BOJ may consider extraordinary measures to help the economy.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Dec 2008 | 8:31 am

Maryland files claim against Diebold unit regarding vote machines

Maryland is demanding $8.5 million from a producer of touch-screen voting machines that the state said were insufficiently secure and required repairs.

Source: MarketWatch.com - Top Stories | 25 Dec 2008 | 8:27 am

Japan stocks post modest Christmas gains (AP)

AP - Japanese stocks made a modest comeback Thursday after falling sharply the previous session, buoyed by bargain hunters and Wall Street's rise overnight.
Source: Yahoo! News: Stock Markets News | 25 Dec 2008 | 8:26 am

Asia Markets 12/25/2008 (TM)

Most markets in Asia were closed.

The Nikkei rose 1% to 8,600. Toyota (TM) moved up slightly after a huge sell-off earlier in the week.

The Shanghai Composite fell .6% to 1,852.

Data from Reuters.

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Dec 2008 | 8:13 am

Skateboarder Tony Hawk is still riding high

He balances time at the half-pipe, work on creating video games and raising money for parks in needy areas. At...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Has Festivus become too much for the rest of us?

Fans of the faux holiday, which became famous on an episode of 'Seinfeld' 11 years ago, worry that it's becoming too commercial. ...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Jobless claims hit a 26-year high

Auto-related layoffs are behind the rise to a seasonally adjusted 586,000 for the week that ended Saturday. New...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Toys makers cheer proposed lead-testing rule changes

Consumer Product Safety Commission staff members recommend that the agency exempt some natural materials from regulations that small firms feared could put them out of business. ...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Silicon Valley braces for cutbacks as technology outlook worsens

Tech firms with headquarters in the region have announced at least 38,000 job cuts since September. More downsizing is expected as spending on computers and software slides. ...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Stocks advance in light, Christmas Eve trading

NEW YORK -- Wall Street rose modestly in light holiday trading today after the government released downbeat, but unsurprising, readings on rising U.S. joblessness and declining consumer spending.
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Crude oil falls 9% to $35.35 a barrel, its lowest close in more than four years

Commodities traders respond to more bad economic news in a holiday-shortened session. The price has plunged nearly 76% after reaching a record high of $147.27 in July. ...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Mortgage applications highest since mid-2003

WASHINGTON -- Research released today showed mortgage applications spiked last week to their highest level in more than five years, as borrowers took advantage of rates near record lows after the government...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

Federal Reserve makes GMAC a bank holding company

The financing arm of General Motors will be allowed to apply for a portion of the $700-billion bailout fund and get emergency loans directly from the Fed. ...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 8:00 am

China to allow freer yuan trades

China says its currency can be used to settle trade in Asia, as it steps up efforts to limit damage from the global downturn.
Source: BBC News | Business | World Edition | 25 Dec 2008 | 5:47 am

Bull Market Christmas Tree From 24/7 Wall St.

Source: 24/7 Wall St. | 25 Dec 2008 | 5:01 am

E-books catch on with children

Undaunted by technology, young readers have become a hot market for publishers who are making books available digitally. ...
Source: RSS feed - channel BNPaperBusiness | 25 Dec 2008 | 3:30 am

Dow rises 48.99 points in light holiday trading (AP)

AP - Wall Street rose modestly in light holiday trading Wednesday after the government released downbeat, but unsurprising, readings on rising U.S. joblessness and declining consumer spending.

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

Trends & Innovations - Wednesday

Drug may protect smokers' lungs

Source: Investor's Business Daily: BUSINESS | 25 Dec 2008 | 12:14 am

Business Briefs - Wednesday

YRC falls after aborting debt deal. The trucking firm's decision to cancel a plan to buy back its debt at a discount fueled a sell-off that sent...

Source: Investor's Business Daily: BUSINESS | 25 Dec 2008 | 12:14 am

Condo Owners Look To Lease In Sales Lull

As the ads say, "more than just a privileged few" can call the brand-new Opera Tower home.

Source: Investor's Business Daily: BUSINESS | 25 Dec 2008 | 12:14 am

In Brief - Wednesday

Cablevision Systems (CVC) will book $45 mil-$65 mil in charges in Q4 as a result of discontinuing its Voom HD Networks, which offered high-def TV...

Source: Investor's Business Daily: BUSINESS | 25 Dec 2008 | 12:14 am

New York Times may sell Red Sox stake: report

NEW YORK (Reuters) - The New York Times Co is trying to sell its stake in the holding company of the Boston Red Sox baseball team, The Wall Street Journal reported on Wednesday, citing people familiar with the discussions.
Source: Reuters: Business News | 24 Dec 2008 | 11:59 pm

GMAC gets Fed's OK to become bank holding company (Reuters)

Reuters - GMAC LLC won U.S. approval on Wednesday to become a bank holding company, giving it access to government lending programs and helping it stave off bankruptcy.

Source: Yahoo! News: Business | 24 Dec 2008 | 11:42 pm

GMAC gets Fed's OK to become bank holding company

WASHINGTON (Reuters) - GMAC LLC won U.S. approval on Wednesday to become a bank holding company, giving it access to government lending programs and helping it stave off bankruptcy.
Source: Reuters: Business News | 24 Dec 2008 | 11:42 pm

Wall Street gains on economic hopes, holiday bargains (Reuters)

Reuters - Stocks rose in a holiday-shortened session on Wednesday after a barrage of economic data signaled the economy was weak, but not as bad as feared, while the fall in crude oil prices and bargain hunting helped retail and airline stocks.

Source: Yahoo! News: Business | 24 Dec 2008 | 11:05 pm

Wall Street gains on economic hopes, holiday bargains

NEW YORK (Reuters) - Stocks rose in a holiday-shortened session on Wednesday after a barrage of economic data signaled the economy was weak, but not as bad as feared, while the fall in crude oil prices and bargain hunting helped retail and airline stocks.
Source: Reuters: Business News | 24 Dec 2008 | 11:05 pm

Wall Street gains on economic hopes, holiday bargains (Reuters)

Reuters - Stocks rose in a holiday-shortened session on Wednesday after a barrage of economic data signaled the economy was weak, but not as bad as feared, while the fall in crude oil prices and bargain hunting helped retail and airline stocks.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 11:05 pm

Ken Fisher of Fisher Investments Cautions About ETF Fees

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 10:54 pm

O'Driscoll Criticizes U.S. Response to Financial Crisis

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 10:36 pm

Mutual Funds: Happy holidays from MarketWatch's mutual funds team

Don't miss these top money and investing columns:

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 10:31 pm

Tainted milk scandal dairy goes bankrupt

BEIJING - A court has declared bankrupt the dairy at the centre of China's deadly tainted milk scandal, one of the firm's owners said - a development lawyers said adds to concerns about how and when those sickened by the doctored...
Source: New Zealand Herald - Business | 24 Dec 2008 | 10:23 pm

GMAC - Fed opens door to bailout funds

The Federal Reserve on Wednesday opened the door for GMAC to get federal bailout money by granting the troubled General Motors finance arm status as a bank holding company.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 10:19 pm

NYSE, Nasdaq short interest fall

NEW YORK (Reuters) - Short interest fell on the Nasdaq and on the New York Stock Exchange in mid-December, reflecting a decrease in bearish sentiment and a desire by short-sellers to lock in profits.
Source: Reuters: Business News | 24 Dec 2008 | 10:06 pm

NYSE, Nasdaq short interest fall (Reuters)

Reuters - Short interest fell on the Nasdaq and on the New York Stock Exchange in mid-December, reflecting a decrease in bearish sentiment and a desire by short-sellers to lock in profits.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 10:06 pm

GMAC approved for bank holding company status

GMAC, the ailing consumer lender partly owned by General Motors, was granted regulatory approval on Wednesday to become a bank holding company, giving it access to the US government's $700bn financial rescue fund and other lending programmes
Source: Financial Times - US homepage | 24 Dec 2008 | 10:02 pm

NewsWatch: Obama has the most work cut out for him in one area: jobs

As the recession rolls on, keeping workers at work may be President-elect Barack Obama’s toughest job.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 10:00 pm

Tiny yields challenge money funds, investors (AP)

AP - Three months after the government stepped in to prop up reeling money-market funds, the $3.8 trillion industry is largely healthy again, with money flowing back to the safe-harbor investments at a steady clip.
Source: Yahoo! News: Business | 24 Dec 2008 | 9:49 pm

Wall St Santa rally small comfort after grim year

US stocks entered the Christmas holiday in subdued mood, posting a modest Santa Claus rally, as investors digested more gloomy data on the economy and, with just four trading days left in 2008, began to take stock of a torrid year
Source: Financial Times - US homepage | 24 Dec 2008 | 9:45 pm

VIX Index of U.S. Stock Option Prices Retreats 2% to 44.21

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 9:16 pm

Axiom's Dalton Says Madoff Scandal Will `Clean Up' the Industry

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 9:06 pm

Coal for Christmas: Stocks on 52-Week Lows (APL, KDE, HNSN, IPCM, LUFK, SYNA, THO, TRAC, RIG)

Source: 24/7 Wall St. | 24 Dec 2008 | 9:05 pm

Stewart Says Economic Weakness Will Be `Quite Protracted'

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 8:47 pm

Mortgage rates fall to new record low (AP)

AP - Rates on 30-year fixed-rate mortgages fell to a record low for the second straight week, causing refinancing applications to surge to the highest level in more than five years, a month after the Federal Reserve pledged to channel billions to prop up the sinking U.S. housing market.

Source: Yahoo! News: Business | 24 Dec 2008 | 8:24 pm

Core inflation slows in November but no deflation

WASHINGTON (Reuters) - A important measure of inflation fell to its lowest level in more than four years last month, data on Wednesday showed, but economists still don't expect the trend to translate into Japan-style deflation.
Source: Reuters: Business News | 24 Dec 2008 | 8:22 pm

FDIC nears IndyMac sale

The final chapter is close to being written on IndyMac, the California thrift that rose high on the risky mortgages that fueled the housing boom before collapsing in the most expensive bank failure in U.S. history.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 8:22 pm

Profit slump: No '09 recovery

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 8:19 pm

Stocks end higher

Stocks rose Wednesday, ending a holiday-shortened session on a high note, as investors picked through a raft of reports on the economy.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 8:14 pm

Consumers cut spending, job outlook bleak

WASHINGTON (Reuters) - Consumers cut their spending in November and orders for costly manufactured goods slumped again, while claims for jobless aid last week hit a 26-year high as a year-old recession tightened its grip.
Source: Reuters: Business News | 24 Dec 2008 | 7:58 pm

Consumers cut spending, job outlook bleak (Reuters)

Reuters - Consumers cut their spending in November and orders for costly manufactured goods slumped again, while claims for jobless aid last week hit a 26-year high as a year-old recession tightened its grip.

Source: Yahoo! News: Business | 24 Dec 2008 | 7:58 pm

Levitt Says He Had `Huge Fight' With Madoff Over Order Flow

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 7:47 pm

Oil falls 9 percent on economic gloom

NEW YORK (Reuters) - Oil dropped 9 percent on Wednesday as another round of gloomy economic data showed the United States has fallen deeper into recession.
Source: Reuters: Business News | 24 Dec 2008 | 7:43 pm

The rush to refi

Low interest rates are fueling a mortgage refinance frenzy as homeowners rush to lower their payments.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 7:35 pm

Market Snapshot: U.S. stocks make modest gains in light pre-holiday trading

Stocks close slightly higher in light, pre-holiday trading after U.S. data on consumer spending and durable goods reported for November come in better than expected.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 7:34 pm

Tech's hope in '09

This Christmas, the titans of the personal-computer industry are finding big lumps of coal in their stockings, and a few are grumbling that it's Intel's fault.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 7:33 pm

OPEC's Worst Christmas

You read it here first. OPEC will have to cut its output by another two million to three million barrels a day once the new year comes.

The oil consuming world has slapped the cartel by continuing to drop prices after OPEC's big cut last week.. Today, crude traded down a stunning 9% to below $36. According to MarketWatch, Crude inventories at Cushing, Okla., the delivery point for crude futures contracts traded on the New York Mercantile Exchange, reached 28.7 million barrels in the week ended Dec. 19, the Energy Information Administration reported.

Demand is so low, it is hardly making a dent in inventories.

The other piece of news that OPEC must find dismaying is the rapid unraveling of the Chinese economy. The central bank there has cut interest rates five times in three months. Export growth rates are slowing, and there is a concern that GDP growth could drop below 5% this year. Sales of key goods like automobiles are falling for the first time in years.

OPEC members Iran and Venezuela insist that crude has to be above $70 a barrel for them to balance their budgets. Russia is also up against severe economic pressures as money moving into the country's economy is shrinking rapidly due to the drop in oil prices. This is beginning to undermine political stability.

OPEC can't afford oil to stay at $36 or anywhere near that.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 7:21 pm

Canadian Markets: Benchmark slips, but oil shares off session lows

Canadian equities shrug off earlier losses, gaining ground as energy stocks pared declines during the holiday-shortened trading session.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 7:20 pm

Americans keep tighter grip on cash

In a troubling sign that consumers are retrenching this holiday season, consumer spending and orders for durable goods fell further in November, according to government reports released Wednesday.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 7:18 pm

Oil falls 9% to just above $35

Oil prices fell more than $3 a barrel or more than 9% - one of the largest percentage drops ever - on a shortened trading session Wednesday that brought more signs that demand continues to wane.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 7:13 pm

High society investor committed suicide after $2.4bn loss

NEW YORK - He was a distinguished investor who traced his lineage to the French aristocracy, hobnobbed with members of European high society and sailed around the world on fancy yachts. But after losing more than $1 billion...
Source: New Zealand Herald - Business | 24 Dec 2008 | 7:00 pm

SEC to charge execs at failed money market fund (AP)

AP - Reserve Management Co., which is facing a slew of investor lawsuits after its money market fund fell below a key safety benchmark, said late Tuesday the Securities and Exchange Commission plans to charge the company and its management with violations of securities laws.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 6:42 pm

The Snowball: Warren Buffett and the Business of Life (Book Review)

He’s a man of international mystique. Businesses cower before him. Investors idolize him. Women…well, he’s no James Bond. But he’s so emblematic that few would bat an eye if his face appeared on a thousand dollar bill.

He is Warren Buffett. And Alice Schroeder, his authorized biographer, does a stellar job of revealing the man without exposing him; covering him in finite detail , faults and all, without sacrificing her deep respect for him. She captures the tycoon’s life from before he was born up to mid-2008, when he found himself shuffling, much to his own surprise, through stacks of undervalued bonds. Things change around Buffett, but his themes—picking extraordinary values, teaching, utter absorption in his work, and paradoxical variety of character traits—remain the same.

Style

Like Buffett himself, the book doesn’t entertain slouches. Schroeder does a fine job of idiot-proofing some of the more elaborate concepts in the book, such as derivatives, but the 800-odd page tome is rather large to swallow in a byte-sized world. This is a book that you need to make time for.

The author’s style is graceful and respectful. It is alternately informative and intimate. At times, it appears as though Buffett himself wrote parts; during other chapters, Schroeder the journalist comes out, favoring facts over poetry. The stylistic fluctuations are minor, however, and they work well.

If there are flaws in the book, they have to do more with the details than the overall story. For example, the author mentions Carnegizing quite a few times before finally explaining it to the reader on page 500. It would have helped to clarify that earlier. Also, Schroeder’s fine attention to detail sometimes borders on irrelevant, until you progress and realize that even the more obscure tidbits—Buffett’s first wife Susie’s childhood illnesses come to mind—do either provide depth to characters or bear on their future development. That’s a sign of good editing, something that endures throughout the book.

The book hooks readers with an intimate portrait of Buffett in his office, then a description of Herbert Allen’s exclusive high-roller event in Sun Valley, Idaho, which introduces readers not only to the caliber of Buffett’s peers, but gives a glimpse into a world rarely uncovered by outsiders. After that, the book flows more or less in chronological order, from a biography of Warren’s parents all the way through to mid-2008.

Financial Lessons

Schroeder doesn’t teach you how to invest, but she does give readers a sweeping tour of American financial history through Mr. Buffett’s life, facilitating a sharper understanding of the US investing landscape before this past year’s dramatic fallout.

Warren Buffet was something of a child investing prodigy who has spent his lifetime building on his substantial natural skills. At the age of 10, he knew more about investing than the average American. He was a seasoned businessman and property owner by the age of 15. He can do his income taxes in his head.

Buffett’s childhood ventures into finance, which included forays to the racetrack and his father’s brokerage firm, offer an opportunity to see finance from a bright child’s eyes, then from a brilliant young man’s—Buffett’s time at Columbia with Benjamin Graham, his forays into Wall Street, and his eventual migration away from that “abhorrent culture”—then from an ever-maturing tycoon’s perspective. The aggregate result is a pleasing and insightful storyline of the discipline (finance) through the man (Buffett).

Snowball’s glimpses into the world of financial moving and shaking offer pleasing insights for anyone interested in finance in general. Schroeder weaves in an array of classic quotes, including:

Debt is no good
Be fearful when others are greedy and greedy when others are fearful
Uncertainty is a friend of the buyer of long-term values
You pay a very high price in the stock market for a cheery consensus

In addition, Schroeder’s coverage of certain significant events in American financial history offer pleasing insights to students of the overall discipline. Her play-by-play of the 1991-92 Solomon Brothers Crisis especially stands out.

The Man

Warren Buffett is brilliant, passionate, hardworking, persistent, and notoriously absorbed in his craft. Was he always like that? Snowball, in a word, says yes. But Buffett wasn’t only born, he was also made, shaped by a dysfunctional mother and regimented, idealistic father, a childhood exposed to politics, markets, and voluntary parsimony, and a natural shyness that drew him not towards people, but numbers, order, and control.

Schroeder explores Buffett’s key character traits while respectfully highlighting his paradoxes as well. Buffett’s investment style is coldly rational, but Buffett the teacher is folksy and accessible. He won’t eat anything “a three-year-old doesn’t eat,” but doesn’t hesitate to feast at elite socialite dinners. The man’s complexity ensures that readers can recognize, but not pigeonhole him. The truth is that all of his characteristics, no matter how much at odds they are with one another, are the real Warren Buffett.

Insight into America

Another facet adding value to the book is its coverage of modern American financial history. From the Depression to World War II to Vietnam to the shaky post-9/11 decade, Snowball touches upon eras in intermediate but informative depth. This makes it accessible to readers of all generations.

The book offers pleasing insights related to America’s business elite. Warren Buffett, over the course of his life, was either intimately or remotely connected to a number of business tycoons, including the Annenberg family, furniture dynamo Rose Blumkin, Washington Post chief Kay Graham, and Bill Gates and his family. Snowball maintains focus on its subject while looping in fascinating details about family members, friends, and peripheral characters.

Read It!

Even if you’re not a Buffett connoisseur or even fan, Snowball is the tome to pick up for 2008. No business book has been more far-reaching, revealing, and comprehensive. This thick, entertaining masterpiece will doubtless add value to your memory banks.

Source: Business Pundit | 24 Dec 2008 | 6:26 pm

Gazprom to control Serbia's oil

Russia and Serbia sign a controversial energy deal handing Russia's Gazprom control of Serbia's oil monopoly.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 6:24 pm

Treasurys bounce back after 3-day slip

After an unusual three-day slide, Treasurys bounced back Wednesday, resuming their nearly uninterrupted upward trend that has persisted since mid-September.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 6:13 pm

The fallen giants of finance

Interactive feature: In the year when the global financial system was shaken to the core, the reputations of the US's banking titans were left in tatters. In this graphic we look at the key decisions and mistakes of the most powerful players, their impact on the crisis, the millions they made – and their chances of a comeback
Source: Financial Times - US homepage | 24 Dec 2008 | 6:10 pm

AlanM Trading's Mandel Sees Oil Prices at $35 for Long Term

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 6:06 pm

Morici Says Effect of Stimulus Package Will Be Felt Next Summer

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 6:04 pm

Lessons learned from the rich

Do you ever wonder about how the rich got so... well, rich? Tess Vigeland speaks with former Ryan D'Agostino about the surprising findings in his book, "Rich Like Them," which features stories about how the wealthy made their money.
Source: Marketplace | 24 Dec 2008 | 5:56 pm

Christmas is near, we need more cheer

It's hard to celebrate during the season of giving when the economy is down in the dumps. But commentator David Frum says a little more of the holiday spirit might just be what we all want -- and need -- this Christmas.
Source: Marketplace | 24 Dec 2008 | 5:55 pm

Lego's building a big profit

While most retailers are experiencing a dismal holiday shopping season, Lego may see a record gain in U.S. sales this year. Mitchell Hartman explains why the construction toy company is building a profit.
Source: Marketplace | 24 Dec 2008 | 5:55 pm

AIG buys assets it insures

In an odd move, the insurance company AIG used $16 billion of its taxpayer-funded loan to buy assets it insures. The move may help the company reduce its own risks. John Dimsdale reports.
Source: Marketplace | 24 Dec 2008 | 5:55 pm

The growing rush to refinance

Mortgage applications are up across the country, but that's mostly benefiting people who own a home and have decent credit. People are taking advantage of the historically low rates to refinance, though. As Bob Moon reports, it may be a good time for homeowners to think about refinancing.
Source: Marketplace | 24 Dec 2008 | 5:55 pm

Madoff scam draws lots of lawsuits

Fallout from the Madoff scam continues as lawsuits are pouring in and piling up. Hedge fund managers who invested their clients' money with Madoff are being sued. Jeremy Hobson reports on the legal fallout surrounding the Madoff scandal.
Source: Marketplace | 24 Dec 2008 | 5:55 pm

India's cheap car stirring up noise

When India's Tata Motors announced it was going to build the Nano -- the cheapest car in the world -- it was met with great fanfare. Now, Indians fear a wave of super-cheap cars could make the clogged streets even noisier. Rico Gagliano reports.
Source: Marketplace | 24 Dec 2008 | 5:55 pm

Mobile gear: '08 in review

Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 5:46 pm

Russia may cut off Ukraine's gas

Russia's Gazprom renews its threat to cut off gas to Ukraine on 1 January, saying a dispute is now at a "critical" stage.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 5:37 pm

U.S. crude oil stocks drop unexpectedly: EIA (Reuters)

Reuters - U.S. crude stocks posted a surprise drop last week, government data showed on Wednesday, and analysts cited higher refinery operations and disruptions to imports due to fog on the Gulf Coast.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 5:20 pm

Russia, China warn of dire economic straits in 2009 (AFP)

AFP - Russia and China issued stark warnings on Wednesday about the impact of the crisis on their recently booming economies in 2009, as stocks and oil prices took a hit from economic gloom over Christmas.

Source: Yahoo! News: Business | 24 Dec 2008 | 5:08 pm

Russia, China warn of dire economic straits in 2009 (AFP)

AFP - Russia and China issued stark warnings on Wednesday about the impact of the crisis on their recently booming economies in 2009, as stocks and oil prices took a hit from economic gloom over Christmas.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 5:08 pm

Mortensen in `Good,' Soprano Silja, Simonetta's `Conspiracy'

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 4:46 pm

Desperate Christmas for UK retailers (AP)

AP - British stores deepened discounts on Wednesday, hoping to lure in last-minute shoppers on Christmas Eve as a third major retailer collapsed into bankruptcy protection in 24 hours.
Source: Yahoo! News: Business | 24 Dec 2008 | 4:40 pm

Deloitte's Delk Says Age of Conspicuous Consumerism Is Over

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 4:39 pm

2008 in Business

Looking back at the year in business in 2008
Source: BBC News | Business | World Edition | 24 Dec 2008 | 4:18 pm

Wall Street drifts up ahead of holiday (AFP)

AFP - US share prices drifted higher in an abbreviated Christmas Eve session Wednesday as traders shrugged off another round of weak economic data.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 4:15 pm

Chimera Files To Raise More Cash, Again (CIM, NLY)

Source: 24/7 Wall St. | 24 Dec 2008 | 3:53 pm

Refiners Squeezed Again (BP, MRO, VLO)

Source: 24/7 Wall St. | 24 Dec 2008 | 3:41 pm

Wedding blues

The economic slowdown hits Indian weddings
Source: BBC News | Business | World Edition | 24 Dec 2008 | 3:40 pm

Reserve Management may face SEC charges over fund failure (Reuters)

Reuters - The New York investment manager credited with inventing the money market fund may face charges he violated federal securities law in connection with the collapse of his $64 billion mutual fund this September, an event that sent the global credit crisis into overdrive.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 3:33 pm

Zavvi placed into administration

Music, games and DVD retail chain Zavvi goes into administration following the problems at Woolworths.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 3:29 pm

Regulators near deal for IndyMac

NEW YORK (Reuters) - U.S. regulators are expected to announce a deal for the assets of failed mortgage lender IndyMac before the end of the year, a spokesman for the bank said on Wednesday.
Source: Reuters: Business News | 24 Dec 2008 | 3:27 pm

Regulators near deal for IndyMac (Reuters)

Reuters - U.S. regulators are expected to announce a deal for the assets of failed mortgage lender IndyMac before the end of the year, a spokesman for the bank said on Wednesday.

Source: Yahoo! News: Business | 24 Dec 2008 | 3:27 pm

Eyeblaster Cancels IPO (EYEB)

Source: 24/7 Wall St. | 24 Dec 2008 | 3:08 pm

US consumers cut their spending

US consumers cut back on their spending in November as the recession and rising unemployment took effect.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 2:13 pm

Guinea junta promises elections in two years

The military junta attempting a coup in has Guinea promised to hold elections in two years time, but the West African state's top civilian leader appealed to the world to prevent the takeover from succeeding
Source: Financial Times - US homepage | 24 Dec 2008 | 2:00 pm

Merry Christmas, You're Fired

As shell-shocked Americans look forward to the end of a horrible 2008, jobless claims jumped again to show that the New Year isn’t likely to bring any immediate respite for the economy.
 
With the jobless report moved up by a day because of Christmas, the Labor Department reported initial claims for jobless benefits rose to a Scroogely 26-year high. Claims for the week that ended December 20 popped by 30,000, to a seasonally adjusted 586,000.

Economists surveyed by Dow Jones Newswires had expected claims would rise by 6,000.
 
The Wall Street Journal added that the four-week average of new claims, which aims to smooth volatility in the data, also rose to a fresh 26-year high, climbing by 13,750, to 558,000.
 
The report wasn’t a surprise, but the toll the job losses will take in 2009 is looming large as economists gear up their expectations—especially in the housing and consumer-spending areas.

Rising unemployment could put a serious dent in the power of the voracious American consumers—who account for 70 percent of GDP. The Commerce Dept. reported today that personal consumption fell 0.6 percent, the fifth consecutive monthly decline. Americans did, however, boost savings yet again to prepare for continued weakness in 2009.

The pain isn’t just being felt in the manufacturing heartland or in the gloomy canyons of New York finance. Bloomberg News reported today that Silicon Valley faces its worst job cuts since the internet bubble burst in 2001.
 
According to the story, the Valley has a 7 percent unemployment rate—about 4,000 fewer jobs today than this time last year—and global spending on computers and software will slide 8 percent next year in the U.S., Western Europe, and Japan.  

Related Links
Looking Down
Comparing American and European Unemployment Insurance
Big Job Losses Early -- Good or Bad?



Source: Portfolio.com: Top 5 | 24 Dec 2008 | 2:00 pm

House prices 'will fall further'

House prices will probably fall by another 10% in the coming year, predicts the Royal Institution of Chartered Surveyors.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 1:39 pm

Oil price falls help drag FTSE down

Oil majors BP and Royal Dutch Shell dragged the FTSE-100 lower as further falls in crude oil prices overnight depressed the energy companies. BP gave up 8.75p to 496p while Royal Dutch Shell ‘B’, the version owned by most UK investors, fell 43p to 1653p.
Source: Latest Business News from Times Online | 24 Dec 2008 | 1:12 pm

David Ross affair to flush out share disclosures

A flood of company directors is expected to disclose that they have secretly mortgaged their shares in the coming weeks as two directors of Leeds Group, the fabric importer, today became the latest to admit to the practice.
Source: Latest Business News from Times Online | 24 Dec 2008 | 12:55 pm