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NewsWatch: Stock futures up as GM's finance arm gets U.S. cash injectionU.S. stock market futures rise as Washignton expands its bailout plans for General Motors, while investors await the latest reading on consumer confidence, which is expected to show a slight recovery.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 2:00 pm Wall Street set for boost on GMAC bailoutA fresh bailout for General Motors was set to give Wall Street stocks a small boost towards the end of one of their worst ever yearsSource: Financial Times - US homepage | 30 Dec 2008 | 1:58 pm Israel in 'all-out war' on HamasIsrael has declared it was in 'all-out war' against militant Palestinian group Hamas as international calls grew for a diplomatic solution to be foundSource: Financial Times - US homepage | 30 Dec 2008 | 1:56 pm World markets gain, led by higher energy stocks (AP)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 1:54 pm Wall Street to open higher on latest auto bailout (Reuters)
Source: Yahoo! News: Business | 30 Dec 2008 | 1:53 pm Wall Street to open higher on latest auto bailoutNEW YORK (Reuters) - Stocks were poised to rise at the open on Tuesday after Washington expanded its bailout of the auto industry, while volume was expected to be light in the holiday-shortened week.Source: Reuters: Business News | 30 Dec 2008 | 1:53 pm Wall Street to open higher on latest auto bailout (Reuters)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 1:53 pm Global growth seen weak as lending stagnatesLONDON (Reuters) - Global growth will be very weak next year, a senior European banker warned on Tuesday, and loans to companies and household in the euro zone stagnated, raising new concerns about the extent of the credit crunch.Source: Reuters: Business News | 30 Dec 2008 | 1:51 pm U.S. puts up $6 billion to support GMACWASHINGTON (Reuters) - The Bush administration on Monday expanded its bailout of the U.S. auto industry, saying it was buying $5 billion in equity in auto and mortgage finance company GMAC and increasing a loan to General Motors by $1 billion.Source: Reuters: Business News | 30 Dec 2008 | 1:49 pm U.S. puts up $6 billion to support GMAC (Reuters)
Source: Yahoo! News: Business | 30 Dec 2008 | 1:49 pm Futures Movers: Oil futures fall below $40 a barrel in thin tradingOil futures fall below $40 a barrel in thin trading after posting strong gains in the previous session on concerns that Israeli air raids in Gaza may disrupt oil supplies from the region.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 1:47 pm As Tension In Nigeria Worsens, Oil Eyes $50 For Early 2009
Both sides in the Gaza conflict has indicated that the fighting could go on for weeks, and there is no reason to believe that the passions on between the parties will not stretch that into months. The 2006 Lebanon War went on for over thirty days. The Middle East conflict and its effect on oil prices is likely to be worsened by a looming military conflict in Nigeria. According to Bloomberg, "The arrest of suspected militant leader Sobomabo Jackrich by the Nigerian military may push rebels into retaliating against the government, the Movement for the Emancipation of the Niger Delta group said." Early in 2008, oil experts said that battles inside the country's borders have cut "around 17 percent of the West African country's installed output capacity of around 3 million bpd." Nigeria's oil reserves rank 10th among the world's nations, just ahead of the US. In July, the rebel group said it would escalate attacks on oil facilities if it did not receive substantial payments from the central government. With two million barrels of oil produced per day, a shutdown of Nigeria's oil shipments would be a much bigger issue for crude prices than the current Gaza military conflict. Although it has been less visible than the problems in the Middle East, Venezuela president Hugo Chavez may be working to take control with the entire government, which would put him at odds with a number of powerful opposition parties and could spark a civil conflict. The next few weeks could set the tone for oil prices which could stretch well into 2009. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 1:41 pm Before the Bell: General Motors, Ford, Dow Chemical, bank earnings in focusU.S. stock market futures gain after General Motors Corp.’s financing arm said it would receive more cash from the government, while investors also awaited a reading of consumer confidence due after the market opens.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 1:40 pm This oil man favors a gas-tax hikeIt's not often you hear a corporate executive advocate a tax on the product he sells, particularly not in the oil business, where opposition to gasoline taxes is fervent. But Paul Foster, the chairman and CEO of El Paso-based Western Refining, is (dare we say use the word after the presidential campaign?) a maverick.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:37 pm U.S. throws GMAC $6 billion lifelineIn yet another move to prop up the crumbling U.S. auto industry, the government announced Monday that it will pump $6 billion into GMAC Financial Services, a financing company critical to the survival of General Motors.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:37 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 1:31 pm Dow scrambling to keep $15 billion Rohm takeover alive: reportSINGAPORE (Reuters) - Dow Chemical is scrambling to keep its $15 billion takeover of rival Rohm & Haas alive after a surprise decision by the Kuwaiti government to scrap a joint venture with Dow, the Financial Times reported on Tuesday.Source: Reuters: Business News | 30 Dec 2008 | 1:28 pm Automakers set to rally as GMAC secures U.S. fundingShares of U.S. automakers General Motors and Ford rally ahead of the opening bell, buoyed by news that GMAC Financial Services had received government funding.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 1:25 pm AIG bailout: $127.7B and countingTo help troubled insurer American International Group stabilize its finances, the Federal Reserve and Treasury have offered AIG a sizeable lifeline to be paid back over the next five years - and to date, the company has borrowed almost all of it.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:24 pm Health-care cure: cell phoneIn many countries outside the United States, the cell phone is technology's answer to the Swiss army knife, functioning as a wallet, personal computer and more.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:16 pm Hold off on financial stocksIt's a simple rule of thumb: When earnings drop, stock prices follow suit. But when earnings rebound, that doesn't mean stocks will bounce back as well -unless they're financial services stocks, which rise and fall alongside profits, says FBR Funds President and Chief Investment Officer David Ellison.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:12 pm Congress to ask SEC how it missed MadoffRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:07 pm Stocks ready to roll higherStocks were poised to rally Tuesday after new government action aimed at helping General Motors and ahead of the release a key measure of consumer confidence.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 1:06 pm Early Analyst Calls (AF)(AXYS)(FEED)(YUM)
Axsys (AXYS) upped to "buy" at Morgan Joseph. Yum! (YUM) upgraded to "buy" at Argus. AgFeed (FEED) downgraded to "neutral" at Global Hunter. Sources: Briefing.com and wire services. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 1:01 pm G.M.A.C. Joins the PackIt’s an auto-finance company! No, it’s a bank-holding company! Wait! It’s both — and it is yet another company getting a handout from Washington. In any case, Felix Salmon points out that the holdouts in the swap now have reason to feel “pretty smug” about their decision: their G.M.A.C. debt is senior to the preferred equity that Treasury is buying. Sign of a Bottom? W.M.D.? What W.M.D.? The Downside of CDS Demonization Source: Portfolio.com: Top 5 | 30 Dec 2008 | 1:00 pm UAE's Dana Gas announces Egypt gas, condensate findDUBAI, Dec 30 (Reuters) - United Arab Emirates-based Dana Gas said it made a gas and condensate discovery in Egypt's Qawasim formation, its fourth find this year in the North African Country.Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:58 pm Music labels eye Hulu.comA deal to host music on the up-and-coming video site could be a blow to YouTube.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 12:52 pm Dollar slides against euro, yenRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 12:51 pm Wall Street points higher after modest decline (AP)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 12:49 pm Record low rates for UK touristsUK holidaymakers heading to Europe over the New Year will get the fewest euros for their pound since the euro was introduced.Source: BBC News | Business | World Edition | 30 Dec 2008 | 12:45 pm Ukraine govt approves compromise with Gazprom-IfaxMOSCOW, Dec 30 (Reuters) - Ukraine's government has agreed to a compromise solution with Russia over debts and gas supplies for next year, Interfax news agency quoted a Ukrainian government source in Kiev...Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:44 pm UK house prices fell 12.2 pct year-on-year in Nov.More bad news for Britain's ailing housing market came out Tuesday, as government figures showed that house prices in England and Wales fell by 12.2 percent in November compared to the sameSource: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:43 pm SKorea's industrial production plunges in NovemberSouth Korea's industrial production plunged in November, official data showed Tuesday, underscoring the country's vulnerability to the global economic slowdown. Industrial output...Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:39 pm Chesapeake Corp. files for bankruptcy protectionSpecialty packaging company Chesapeake Corp. has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million. The company's stock,...Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:28 pm London's FTSE 100 index up 44.13 at 4,363.48 (AP)AP - Share prices on the London Stock Exchange were higher at midday Tuesday.Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 12:22 pm London's FTSE 100 index up 44.13 at 4,363.48Share prices on the London Stock Exchange were higher at midday Tuesday. At noon, the FTSE 100 share index was up 44.13 points at 4,363.48.Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:22 pm 7 winning industriesDespite frozen credit and slow consumer spending, a (precious) few sectors are thriving. Successful industries sell anything with the word "dollar" in it, lipstick, Wii and Spam.Source: Business and financial news - CNNMoney.com | 30 Dec 2008 | 12:19 pm UPDATE 1-India's Reliance Comm starts nationwide GSM serviceMUMBAI, Dec 30 (Reuters) - India's dominant CDMA mobile operator, Reliance Communications , will also offer GSM-based mobile services across the country from Wednesday, in a move to lure more users in...Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:15 pm Housing market sees another fallHouse prices fell by a further 1.9% in November as activity in the market dropped again, says the Land Registry.Source: BBC News | Business | World Edition | 30 Dec 2008 | 12:15 pm Gazprom renews Ukraine gas threatRussian gas giant reiterates it would cut gas supplies to Ukraine if it does not pay out its debt.Source: BBC News | Business | World Edition | 30 Dec 2008 | 12:04 pm Oil falls below $40 on grim economic outlook (Reuters)
Source: Yahoo! News: Business | 30 Dec 2008 | 12:02 pm Oil falls below $40 on grim economic outlookLONDON (Reuters) - Oil fell below $40 a barrel on Tuesday, pressured by gloom about prospects for world economic growth which outweighed heightened tensions in the Middle East due to the Israeli-Hamas conflict.Source: Reuters: Business News | 30 Dec 2008 | 12:02 pm Japan auto sales plunge as young lose interestTo get around the city, Yutaka Makino hops on his skateboard or rides commuter trains. Does he dream of the day when he has his own car? Not a chance. Like many Japanese of his...Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:02 pm European stocks rise as Tokyo ends shocking year (AFP)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 12:01 pm Survey: credit tightening for German firmsCompanies in Germany are finding credit from banks ever harder to come by as the global financial crisis deepens its hold on Europe's biggest economy, with larger manufacturers particularlySource: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 12:00 pm Wall Street points higher after modest declineInvestors nearing the end of a brutal 2008 made some modest bets Tuesday, pointing Wall Street toward a higher open. The market was awaiting a reading on consumer confidence during...Source: RSS feed - channel BNewsBusiness | 30 Dec 2008 | 11:59 am GMAC is thrown $6bn lifeline by US Treasury$The US Treasury has agreed a $6 billion ($£4.1 billion) rescue package for GMAC, General Motor’s ailing finance arm, in a move that will help the business to survive by making it easier to turn itself into a bank holding company.Source: Latest Business News from Times Online | 30 Dec 2008 | 11:59 am Airlines "shrinking by all measures": IATAGENEVA (Reuters) - International airlines saw a huge 13.5 percent fall in cargo traffic in November and a drop of 4.6 percent in passengers as business shrank across the industry, the carriers' grouping IATA said on Tuesday.Source: Reuters: Business News | 30 Dec 2008 | 11:57 am Europe Markets: European shares step higher as auto sector gainsEuropean shares step higher in thin trading, with automakers in Germany and France getting carried along as General Motors’ finance arm receives more U.S. government funds, though HBOS and Lloyds fall in London on reports of a possible challenge to their merger.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 11:56 am London Markets: U.K. shares gain as HBOS, Lloyds TSB come under pressureU.K. shares rise for the second straight session following the Christmas break, helped by another strong performance from oil stocks, though Lloyds TSB and HBOS are both under pressure following a report of a possible challenge to their merger.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 11:53 am Apparel makers to ask retailers for concessions: report(Reuters) - Clothing manufacturers, irked by the deep holiday discounts offered by retailers, may force department stores to absorb a larger chunk of the markdowns, Bloomberg reported.Source: Reuters: Business News | 30 Dec 2008 | 11:49 am Posted Without Comment: Housing Getting Worse
Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 11:41 am Old News, New Wrapping: Car Industry Bad Next Year
No point in doing the survey next year. The results won't change. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 11:36 am Congress to examine Madoff case on MondayWASHINGTON (Reuters) - Lawmakers will take their first close look next Monday at financier Bernard Madoff's alleged $50 billion fraud and why the Securities and Exchange Commission failed to discover the scandal.Source: Reuters: Business News | 30 Dec 2008 | 11:31 am Consumer Confidence Is The Opposite Of Consumer Spending
The actual dynamics of consumer confidence may actually be much, much worse than that, especially in a period when credit is not available, joblessness is rising, and Americans are still deeply in debt. Consumer confidence may actually be a negative indicator for consumer spending. A citizen who takes a dollar he might have spent on a new TV and puts it into a savings account or pays down a credit card balance takes a sale out of the economy. If the action improves the chance that his financial future will be brighter, he may do it every month. That pushes his confidence up. He is better off today than he was 30 days ago. It actually makes a great deal of sense that consumer confidence could rise, or at least stay flat, as the recession deepens, no matter how counterintuitive that may seem at first. A recession tends to drive individual spending into hibernation as people hoard dollars to save their own skins. The by-product may be good long-term. As the savings rate moves up, so does the chance that people will not have to go onto the government payroll in their advanced old age. The microcosm of the consumer spending conundrum can be seen in this year's holiday spending numbers. Retailers posted poor results. Consumers who did not spend a dollar used it for something they thought was more important. Their kids felt worse because they did not get the new GI Joe or Barbie, but kids are not part of the consumer confidence poll. The parents were relieved that more money stayed in the mattress. In a remarkably perverse way, watching a neighbor lose a job may also help consumer confidence, at least a month at a time. People who keep jobs may even have a sunny outlook. They have not be taken off to the gallows. A month with employment is a good month. Consumer confidence is an outstanding sign of falling consumer spending, perhaps the best one around. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 11:29 am Sir Tom Hunter's USC sent reeling by Boxing Day rent demandThe empire of Sir Tom Hunter, the billionaire entrepreneur and philanthropist, unravelled further yesterday as one of his flagship ventures fell into administration.Source: Latest Business News from Times Online | 30 Dec 2008 | 11:20 am US offers $6bn bail-out for GMACThe US Treasury unveils a $6bn rescue package for GMAC, General Motors' troubled car loan arm.Source: BBC News | Business | World Edition | 30 Dec 2008 | 11:17 am Ford (F) And The Self-Parking Car Debacle
The matchless idiocy which has defined the fall of the US car industry can be summed up by one event. Ford (F) is introducing a "self-parking" automobile. According to The Wall Street Journal, "Ford Motor Co. plans to offer two Lincoln models next year that can park themselves, the latest move in a strategy aimed at improving the public's image of the auto maker." It is hard to imagine how the "improvement" part of that works. Somewhere in the bowels of the Ford design center an overeducated engineer came up with a plan which would allow a driver to get out of his car and watch it move its big, shiny body into a parking space. The engineer probably got a new patent to his name. A product development team then drew up a budget for the thing--probably several million dollars. It then went over to "The Glass House", Ford's headquarters, and though an inept process, the program was approved. No one knows for certain, but the new parking feature will probably add about $1,000 to the cost of a Lincoln, which is the division of Ford which will offer the option. New, complex car features may well cost more to develop than they bring in as revenue. They are "elective" portions of the car-buying experience. If a consumer does not want to have his car parked by his car, he will simply say "no" to the $1,000. Every time an American car company adds complexity to its manufacturing process it costs money. Ditto for developing features. At that point, another hurdle has been created for the consumer to ponder. A feature is not a feature if no one wants it. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 11:10 am Indications: Stock futures up as GM's finance arm gets U.S. cash injectionU.S. stock market futures rise as Washignton expands its bailout plans for General Motors, while investors await the latest reading on consumer confidence, which is expected to show a slight recovery.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 11:07 am Looking To "The Land Of The Rising Sun" For US Economic Future (SNE)(TM)
A great deal of the economic trouble in Japan is that its exports are falling rapidly. Since they are such a critical part of the country's economy, as the global economy gets worse Japan will continue to suffer. Recent estimates of how bad things will be in Japan may have been greatly understated. According to Bloomberg, "Japan's economy will probably shrink at an annual 12.1 percent pace this quarter, the sharpest drop since 1974, as exports collapse, Barclays Capital said." Previous estimates have been in the 4% to 5% range. Japanese companies are closing or idling production facilities at a rapid pace. Even the leaders of the export economy such as Toyota (TM) and Sony (SNE) are in deepening trouble. The situation in the US may not be terribly different from Japan's, which means estimates of how much American GDP will fall are probably understated. According to the Commerce Department, exports as a percentage of the economy were more than 11% in 2006. That number was probably up in 2007 and this year. In 2002, the figure was only 9.6%. The total value of US exports is being decimated due to the falling value of the dollar and the global recession. That sits on top of the already frightening drop in consumer spending inside American borders. The two add up to a number which is much worse than most economists are predicting. The feckless Alan Greenspan recently said that he sees GDP dropping faster than some estimates based on economic numbers from October. He may be right for once. The recession in the retail industry has turned into a depression. There are credible estimates that 25% of retailers in the US could file for bankruptcy in the next two years. Experts say 72,000 retail outlets could close in the first half of 2009. That could knock out more than a million jobs. At this point it is assumed that some sectors of the economy will hold up. Tech belongs on that list. So does the defense industry. But, other large industries are posting results that are getting worse with each passing day. That would certainly include autos, hospitality, and media. Each employs millions of people. Each has revenue which is falling faster than what was forecast just a quarter ago. Estimates for US Q4 GDP and projections for early next year are way to optimistic. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 10:53 am Pakistan shares fall another four pct (AFP)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 10:49 am Tuesday's biggest moving stocksSAN FRANCISCO (MarketWatch) -- Among the companies whose shares are expected to see active trade in Tuesday's session are Dow Chemical Co., Nationwide Financial Services, Rohm & Haas Co., and El Paso Corp.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 10:41 am Israel vows a 'long' Gaza campaign: reportsAs Israel marks the fourth day of a fierce air assault on Gaza, the country’s interior minister Meir Sheetrit rejects the possibility of a ceasefire, vowing the attacks will continue until the threat of rockets from Hamas is completely eliminated.Source: MarketWatch.com - Top Stories | 30 Dec 2008 | 10:38 am Photography studio ceases tradingPhotography studio Olan Mills ceases trading and says it will shortly appoint an administrator.Source: BBC News | Business | World Edition | 30 Dec 2008 | 10:31 am GMAC's $7 Billion Deal: Too Little, Too Late
The thought behind dumping all of this capital into GMAC is that it may help restart the company's auto loan business and also build a floor under the firm's flagging mortgage business. But, it is probably too little money, and there is no reason to believe that GMAC will lend out any of the cash to potential car buyers. According to The Wall Street Journal, GM (GM) and Chrysler have undermined their own sales because of trouble at their lending units. "Both financing companies have been restricting credit as their own finances worsened." A look at the money that the government has put into commercial banks shows that most of the capital has been used for reserves and not lending. GMAC may have good reason not to push more car loans. While it may help GM cut inventory, lending to consumers to buy autos is extremely risky. Many buyers already have trouble paying their mortgages and credit cards, raising the chances of default. And, used cars are as worthless as used Kleenex. The market is flooded with previously owned vehicles that no one wants. They are poor security for car loans. The money coming to the car lending firm may also be much less than it will need longer term. In an SEC filing last month, GM said that the GMAC exposure to mortgage loans would continue to destroy its balance sheet as home default rates rise and house values fall. The GMAC transaction looks a great deal like most other government "rescues" of financial operations. It is a start. It may help the operation for a few months, but what happens as the value of the GMAC loan portfolio continues to slide? In all probability, the federal government will have to throw more money into the pot. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 10:21 am Chinese shares fall in slow preholiday trading (AP)AP - Chinese stocks fell for a seventh straight session on Tuesday, as banks and property developers led a broad decline in lackluster trading.Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 9:29 am Apparel makers to ask retailers for concessions: report (Reuters)
Source: Yahoo! News: Business | 30 Dec 2008 | 9:29 am Media Digest 12/30/2008 Reuters, WSJ, NYTimes, FT, Bloomberg (GM)(TM)(HMC)(DOW)(F)
Reuters reports that violence in Gaza intensified. Reuters writes that Japan is looking at a program to buy bad loans. Reuters writes that Dow Chemical (DOW) is scrambling to keep it deal to buy Rohm & Hass for $15 billion alive. Reuters reports that Kirk Kerkorian sold his Ford (F) shares at a large loss. Reuters reports that a survey or restructuring professionals said that the auto industry will be the most troubled sector next year. Reuters reports that the Lehman bankruptcy wiped out billions of dollars. Reuters reports that bad holiday sales are weighing on mall owners. The Wall Street Journal reports that banks are headed for their first overall quarterly loss since 1990. The Wall Street Journal reports that airlines are having surprising success raising money. The Wall Street Journal reports that Ford will be building self-parking vehicles. The Wall Street Journal reports that three companies have emerged as buyers for IndyMac. The Wall Street Journal reports that Dell (DELL) reached its environmental goal of being "carbon neutral". The Wall Street Journal reports that the IMF supports that Obama stimulus plan. The Wall Street Journal reports that the cost to make the Sony (SNE) PS3 has dropped by a third. The Wall Street Journal reports that internet providers are joining the Obama plan to build out more broadband. The Wall Street Journal reports that figures for October are expected to show another drop in housing prices. The Wall Street Journal reports that an improvement in consumer confidence means little if it is not accompanied by spending. The Wall Street Journal reports that the SEC revised its energy reserves rule. The Wall Street Journal writes that the Kuwait decision to end a relationship with Dow Chemical (DOW) may hurt foreign investment in the country. The Wall Street Journal writes that more CEOs are taking commercial flights. The Wall Street Journal reports that a poor economy is hurting the outsourcing business. The New York Times reports that Russia's huge Gazprom gas monopoly is in trouble. The New York Times reports that as the US buys less from China, Germany suffers because of its business with the world's most populated country. The New York Times reports that TV networks are doing relatively well because they can still provide large audiences. The FT argues that the IMF is arguing for countries to increase their stimulus packages. The FT reports that there will be a huge crack down on hedge funds due to Madoff. The FT reports that retailers face an extremely hard 2009 Bloomberg reports that the Japanese economy could shrink 12% this quarter. Bloomberg reports that Toyota (TM) and Honda (HMC) may end "just in time" inventory as their suppliers suffer. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 8:50 am London stocks open higher (AFP)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 8:46 am London stocks open higher (AFP)
Source: Yahoo! News: Business | 30 Dec 2008 | 8:46 am Sterling bounces off Monday's record lowSterling this morning bounced modestly off Monday’s record low of 97.99p against the euro to trade at 97.30 but fell to a six- year low against the dollar.Source: Latest Business News from Times Online | 30 Dec 2008 | 8:23 am Asia Markets And Europe Open 12/20/2008 (TM)(SNE)
The Nikkei was up 1.3% to 8,860, but was down 42% for the year. Toyota (TM) fell modestly, and Sony (SNE) rose. The Hang Seng fell .3% to 14,281. The Shanghai Composte was down 1% to 1,833. In Europe, the FTSE opened up .8% to 4,352. The Dax rose up 1.3% to 4.764 and the CAC 40 was up .9% to 3,152. Data from Reuters. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Dec 2008 | 8:17 am SKorean stocks, won close worst year since 1997 (AP)AP - South Korea's benchmark stock index and currency both rose slightly Tuesday, but still closed out their worst year since 1997, when the country was in the throes of the Asian financial crisis.Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 8:12 am Kirk Kerkorian sells remaining Ford sharesThe investor spent about $1 billion acquiring a 6.5% stake in the struggling automaker this year, then saw the value of its stock plummet. ...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am In '08, investors who lost less wonManaging to not be totally wiped out qualified as a successful result in a brutal year on Wall Street. If you're...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am GMAC to get $5 billion in U.S. financial assistanceThe Treasury Department's move to aid the automotive lender could free up badly needed financing for car buyers. ...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am Bold innovators led AIG's stunning riseA complex, disciplined system minimized risk and maximized profit, but it wouldn't last. First of three partsSource: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am Gasoline prices fall in U.S. but edge up in California, raising concernThe U.S. average drops 4 cents in the last week to $1.613 a gallon. California's average climbs 0.4 cent to $1.810. Some groups blame refiners for a reduction in stockpiles. ...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am L.A. clubs offer cheaper New Year's Eve revelryVenues on the Sunset Strip and in Hollywood are cutting cover charges and drink prices to draw partygoers. The...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am Sale of IndyMac to partnership likelyWell-known investors are expected to strike a deal with FDIC for the lender by Wednesday. The Federal Deposit...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am Stocks pull back amid Middle East tensionsStocks retreated Monday as violence in the Middle East and a resulting jump in oil prices reminded investors that the market could face problems beyond the recession.Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am 'Watchmen' clash far from settledFox wants to block Warner's release of the film version of the famed graphic novel. The trailer for the highly...Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am FDA approves Ferring Pharmaceuticals' prostate cancer drug degarelixFederal regulators Monday approved the first new drug to treat prostate cancer in four years.Source: RSS feed - channel BNPaperBusiness | 30 Dec 2008 | 8:00 am GMAC gets $6bn injection from US TreasuryThe US Treasury department unveiled up to $6bn in aid for GMAC, the financial services group that is critical to General Motors' turnaroundSource: Financial Times - US homepage | 30 Dec 2008 | 7:20 am Tokyo markets close on 42% annual fallA brief, two-hour session of thin trading volumes and choppy buying activity brought to a close the worst year for shares on the Tokyo Stock Exchange.Source: Latest Business News from Times Online | 30 Dec 2008 | 6:39 am Japan stocks rise as Nikkei ends worst year ever (AP)
Source: Yahoo! News: Stock Markets News | 30 Dec 2008 | 5:51 am EMI chief in talks to buy Packer cattle ranchFirst he sold off his late father's media empire. Now James Packer is in talks to sell the family cattle interests in his latest move away from the business empire built up by his father Kerry Packer, the Australian media mogul.Source: Latest Business News from Times Online | 30 Dec 2008 | 3:37 am Dow scrambling to keep $15 billion Rohm takeover alive: report (Reuters)
Source: Yahoo! News: Business | 30 Dec 2008 | 2:37 am 'Hard year ahead' for Australian tourismAustralia's tourism industry is headed for a tough year on the back of the global financial crisis with a drop in the number of foreign visitors expected, a new report shows. According to the Tourism Australia report, released...Source: New Zealand Herald - Business | 30 Dec 2008 | 2:00 am Dow Chemical fights for dealThe Kuwaiti government's shock decision to pull out of a $17.4bn joint venture has left the US chemical manufacturer scrambling to raise capital for its acquisition of Rohm & HaasSource: Financial Times - US homepage | 30 Dec 2008 | 1:35 am BlackRock in voting rights shake-upBlackRock is altering the distribution of voting rights among its largest shareholders in a complicated arrangement that involves exchanges of common and preferred sharesSource: Financial Times - US homepage | 30 Dec 2008 | 1:08 am Fonterra warns of lower dairy payoutFonterra is warning farmers it is increasingly likely the forecast dairy payout will be cut further. The world's largest dairy exporter, with annual revenues of about $17 billion, said today it would be reviewing its forecast payout...Source: New Zealand Herald - Business | 30 Dec 2008 | 1:00 am Business Briefs - MondayNovartis licenses herpes vaccine. The Swiss pharmaceutical firm said it has licensed an experimental vaccine for a type of herpes virus that can...Source: Investor's Business Daily: BUSINESS | 30 Dec 2008 | 12:36 am Trends & Innovations - MondayBoomers fear rising medical costsSource: Investor's Business Daily: BUSINESS | 30 Dec 2008 | 12:36 am Bristol-Myers Squibb Spins Off Infant-Formula Giant Mead JohnsonCompanies have been withdrawing their IPO filings right and left these days as the bear market lumbers on and underwriters evaporate. But on Dec....Source: Investor's Business Daily: BUSINESS | 30 Dec 2008 | 12:36 am In Brief - MondayScience Applications Int'l (SAI) said it won an Army contract worth more than $97 mil to provide a mobile military vehicle inspection system....Source: Investor's Business Daily: BUSINESS | 30 Dec 2008 | 12:36 am Two potential bidders shun Boston Globe, Red SoxNEW YORK/CHICAGO (Reuters) - Two Boston businessmen have denied they were interested in buying The Boston Globe newspaper and a stake in the Red Sox baseball team, which are owned by the New York Times Co.Source: Reuters: Business News | 30 Dec 2008 | 12:21 am Credit card rates 'must not rise'Capped interest rates on credit cards would help small businesses in the downturn, an industry body says.Source: BBC News | Business | World Edition | 30 Dec 2008 | 12:01 am Olan Mills Photography to go into administrationBritain's biggest studio photography business has collapsed, raising fears that thousands of families will not receive pre-paid Christmas presents. Olan Mills Photography, which encouraged customers to pay in advance, was accused of pocketing funds from Christmas sales without providing goods in return.Source: Latest Business News from Times Online | 30 Dec 2008 | 12:00 am Problems mount for Robert Tchenguiz's Globe Pub CompanyRobert Tchenguiz's pub ambitions could suffer a fresh setback in the new year amid indications that the Globe Pub Company, the tenanted pub operator set up four years ago by the millionaire's R20 investment vehicle, is close to breaching its financial covenants and faces an uphill battle to stave off administration.Source: Latest Business News from Times Online | 30 Dec 2008 | 12:00 am Can Entertainment Rights shareholders save Postman Pat and friends?Entertainment Rights, the debt-laden company behind Basil Brush and Postman Pat, is trying to raise about £30 million from shareholders in an attempt to continue in business.Source: Latest Business News from Times Online | 30 Dec 2008 | 12:00 am Lehman Brothers chiefs' lack of plan cost creditors $75bn$Dick Fuld, the ousted chairman and chief executive of Lehman Brothers, and his deputies cost creditors as much as $75 billion ($£51.5 billion) by rushing the stricken investment bank into a bankruptcy filing, an analysis by liquidators has found.Source: Latest Business News from Times Online | 30 Dec 2008 | 12:00 am Britons pay off mortgage debt in preference to borrowing against propertyNew signs of a deep contraction in the British economy emerged yesterday with further evidence that householders have cut retail spending and started to reduce debt.Source: Latest Business News from Times Online | 30 Dec 2008 | 12:00 am Taking stockHow share markets around the world have fared in 2008Source: BBC News | Business | World Edition | 29 Dec 2008 | 11:38 pm Buffett and China banks top cash-rich listListed companies are sitting tight on their cash during the economic downturn, leaving them in a strong position to survive the crisis and with the option of acquiring some bargainsSource: Financial Times - US homepage | 29 Dec 2008 | 11:33 pm Kerkorian sells off Ford shares at deep lossDETROIT (Reuters) - Billionaire investor Kirk Kerkorian has sold off all of his remaining shares of Ford Motor Co, completing a retreat from a high-profile stake in the No. 2 U.S. automaker that cost him hundreds of millions of dollars.Source: Reuters: Business News | 29 Dec 2008 | 11:21 pm US stocks: Mideast tensions drive market downWall Street has ended an erratic session with a moderate loss as continuing violence in the Middle East reminded investors that the market could face problems beyond the recession. The collapse of a Dow Chemical Co. joint venture,...Source: New Zealand Herald - Business | 29 Dec 2008 | 11:00 pm NZ stocks: Sharemarket edges lower in early tradeThe New Zealand sharemarket edged lower in early trade after United States stocks skidded as the unravelling of a big deal overshadowed gains in the energy sector. In this country leading stocks led the market down early, with...Source: New Zealand Herald - Business | 29 Dec 2008 | 10:40 pm VIX Index of U.S. Stock Option Prices Advances 1.2% to 43.90Source: Bloomberg - All Podcasts | 29 Dec 2008 | 10:33 pm Vail Sees Gold Above $1,000, Recommends ETF InvestmentSource: Bloomberg - All Podcasts | 29 Dec 2008 | 10:31 pm Downturn issuesAn academic answers your downturn queriesSource: BBC News | Business | World Edition | 29 Dec 2008 | 10:23 pm Altman Says Obama Stimulus Plan Must Reach `Very Far'Source: Bloomberg - All Podcasts | 29 Dec 2008 | 10:10 pm Pound hits new low against euroThe pound hits a new record low against the euro due to continued concerns about the outlook for the UK economy.Source: BBC News | Business | World Edition | 29 Dec 2008 | 10:05 pm Hear: Passive? Aggressive.Today on Planet Money: -- Satyajit Das says the old economic order got obliterated this year, but the new one's not yet in place. Until that happens, he argues, no one really knows what to do. -- Bill Bernstein, neurologist and genius economic historian, has an idea. Bernstein backs a style of playing in the market called "passive index investing." After the jump, links to books about economics by Bernstein and another smartie. Download the podcast; or subscribe. Intro music: Gnarls Barkley's "Run." Find us: Twitter/ Facebook/ Flickr.
Bill Bernstein's books include: John Bogle's books include: » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 9:57 pm Goldstein Says Obama Can't Always Heed His AdvisersSource: Bloomberg - All Podcasts | 29 Dec 2008 | 9:56 pm Retailers who have filed for bankruptcy protection (AP)AP - Retailers have come under growing pressure as consumers cut their spending because of the drop in home values, worries about job security, eroding credit and higher food costs. Experts expect a spate of bankruptcies after holiday sales are tallied and weaker players become unable to survive.Source: Yahoo! News: Business | 29 Dec 2008 | 9:56 pm Currency: Kiwi opens firmerThe New Zealand dollar opened firmer in local trading today against the US dollar, amid renewed concerns about the US economy and heightened tensions in the Middle East. The kiwi was buying US57.97c at 8am, compared with US57.63c...Source: New Zealand Herald - Business | 29 Dec 2008 | 9:00 pm When Shopping Is DroppingWhole lot of hollering going on about the travails of retail. The Wall Street Journal reports that analysts predict up to a quarter of all stores are having trouble and may need to declare bankruptcy. Matthew Yglesias spins through the real implications for your local mall. The short answer is that bankruptcy might allow some stores a second life. The long answer depends on the much broader economy. "When consumer demand goes down, the first response is to discount the merchandise to make sure you can move it," Yglesias writes. "But the second response is to start stocking less inventory and operating fewer stores." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 8:32 pm US retailers face grim outlookUS retailers are facing a dire outlook in 2009 as tight credit and scared consumers could lead to mass store closings and bankruptciesSource: Financial Times - US homepage | 29 Dec 2008 | 8:31 pm Oil rises on Middle East tensionsCrude oil prices rise on concerns Israel's attacks on Hamas could threaten supplies from the Middle East.Source: BBC News | Business | World Edition | 29 Dec 2008 | 7:56 pm Funds on verge of IndyMac buy-outOne of the largest commercial bank failures of the financial crisis is close to being sold to a consortium of private equity and hedge fund investors, which include JC Flowers, Dune Capital and Paulson & CompanySource: Financial Times - US homepage | 29 Dec 2008 | 7:53 pm Crackdown on hedge funds after Madoff affairHedge funds are bracing themselves for a raft of more stringent requirements by investors and increasing regulatory scrutiny, following the discovery this month that up to $50bn has been lost through alleged fraud by Bernard MadoffSource: Financial Times - US homepage | 29 Dec 2008 | 7:46 pm 'Turn Around, Downsize'Earlier this month, Columbia Business School held its semiannual Follies show. Amid jokes about MBA life and the school itself was the latest music video, "Total Collapse of the Street." » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 29 Dec 2008 | 7:42 pm Rajadhyaksha Sees Some Returns Better Than Valuations SuggestSource: Bloomberg - All Podcasts | 29 Dec 2008 | 7:30 pm IMF argues for large stimulus packagesAcross-the-board tax cuts or bail-outs of troubled industries such as the automotive sector are likely to waste government money while doing little to stimulate the global economy, the International Monetary Fund warnedSource: Financial Times - US homepage | 29 Dec 2008 | 7:13 pm XM Got Sirius ProblemsThe NYT this weekend took a look at whether satellite radio can survive. CEO says yes, but my favorite line is this quote from an analyst, who wasn't so sure:
Read it here. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 7:05 pm Stone of Stone & McCarthy Sees Housing Stability Late in 2009Source: Bloomberg - All Podcasts | 29 Dec 2008 | 6:52 pm U.K. galleries on quest to save paintingThe National Galleries of Scotland are hoping to raise enough money to keep a painting by Renaissance master Titian from being taken back by its owner. Problem is, the painting has a hefty price tag. Christopher Werth reports.Source: Marketplace | 29 Dec 2008 | 6:08 pm Used car businessman still optimisticBusiness at Mort's Imports in Ohio has remained pretty stagnant over the past few months. But owner Morton McArthur tells Kai Ryssdal he remains optimistic that his used car dealership will be able to survive the economic downturn.Source: Marketplace | 29 Dec 2008 | 6:07 pm So what's a hedge fund?Hedge funds seem to make headlines when things go bad on a trading day. But what are these funds and how do they really affect the stock market? Mitchell Hartman explains the term in our latest Marketplace Decoder.Source: Marketplace | 29 Dec 2008 | 6:01 pm Not planning on retirement is OKThe economic crisis is ruining retirement plans for some people. But commentator Tim Eavenson thinks he'll be OK if he never retires, and he will happily exchange retirement funds for other benefits.Source: Marketplace | 29 Dec 2008 | 6:01 pm Chalking up the losses of 2008Watching the stock market spiral downward this year was pretty tough. As the market went south, so did our retirement savings, college funds and other investments. Kai Ryssdal speaks with Robert Reich about those losses and how we're coping with them.Source: Marketplace | 29 Dec 2008 | 6:01 pm Electronic show running on low batteryThe 2009 International Consumer Electronics Show promises the latest innovations in technological gadgets and products. But as Jeremy Hobson reports, attendance is expected to be much lower than in years past because retailers who sell electronics are being hit hard by the recession.Source: Marketplace | 29 Dec 2008 | 6:01 pm Dow Chemical down after deal implodesDow Chemical was set on a joint venture with a state-owned Kuwaiti company. But after the deal fell through, so did the company's shares. As Janet Babin reports, without a merger, another Dow Chemical deal may be at risk.Source: Marketplace | 29 Dec 2008 | 6:01 pm Gaza smuggling tunnels bombedIsraeli air strikes continue to hit Gaza. Over the weekend, 40 underground tunnels on the Egyptian border were bombed. As Daniel Estrin reports, some smugglers stand to make good money off of the crisis.Source: Marketplace | 29 Dec 2008 | 6:00 pm NFIB's Dunkelberg Sees Wave of Retail Store BankruptciesSource: Bloomberg - All Podcasts | 29 Dec 2008 | 5:38 pm 'Maybe We Need A Downturn'In a blog entry headlined "Maybe We Need a Downturn," listener Shawn Smith writes: The other day on my bus into downtown SF, a down-and-out looking guy stepped on and asked if anyone could give him the dollar he was short on bus fare. Amazingly, five or six people stepped up to oblige, and it got me thinking about the economy. I've seen people ask for money on the bus before, but I've never seen five people leap to lend a hand. Hard times can create a kind of brotherhood. He puts me mind of a report from the New York Times over Christmas. The paper says its annual Neediest Cases charity has received over $500,000 more than it had by this point last year. And that's not all. The number of people giving went up, too -- by 53 percent. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 5:30 pm Levitt Says SEC to Put More Emphasis on EnforcementSource: Bloomberg - All Podcasts | 29 Dec 2008 | 5:24 pm Boyden Global's Branthover Sees `Smart' Hiring on Wall StreetSource: Bloomberg - All Podcasts | 29 Dec 2008 | 4:19 pm Flickinger Sees U.S. Retail Store Closings, BankruptciesSource: Bloomberg - All Podcasts | 29 Dec 2008 | 4:16 pm Receivers pile on woes for NathansAt the time of Nathans' collapse VTL owed it $112 million and parties associated with VTL's business activities owed it a further $59 million. The receivers of Nathans Finance are set to take legal action against associated parties...Source: New Zealand Herald - Business | 29 Dec 2008 | 4:00 pm NZ included in baker's aggressive expansion planIn tough economic times, it seems there's no business like dough business. While much of the retail sector is in cutback mode, Bakers Delight is embarking on an aggressive growth campaign to recruit up to 150 new franchisees across...Source: New Zealand Herald - Business | 29 Dec 2008 | 4:00 pm From schoolboy bus to campervan bossOne of Grant Webster's fondest childhood memories is of hopping on his dad's coach and going on tours of the Waikato and Hawke's Bay regions, visiting attractions like the Waitomo Caves. "My father was a tour driver for Newmans...Source: New Zealand Herald - Business | 29 Dec 2008 | 4:00 pm David Irving: Empowering our understated heroesBack in 2000 when the idea of The ICEHOUSE was hatched as a business growth centre to help more New Zealand companies succeed at home and internationally, I had no idea of the goldmine we had discovered. I refer to the understated...Source: New Zealand Herald - Business | 29 Dec 2008 | 4:00 pm Euro starts to deliver on its early promiseTen years ago Europe launched its grand experiment with a shared currency - and watched it plunge so far it needed a bailout from central banks. But as the anniversary approaches of the January 1, 1999, arrival of the euro, economists...Source: New Zealand Herald - Business | 29 Dec 2008 | 4:00 pm How one family's mortgage is linked to meltdown (Reuters)
Source: Yahoo! News: Business | 29 Dec 2008 | 3:19 pm A Physicist Reviews Madoff Golf Scores
Sand wedge please... In particular, the scores seemed suspiciously steady, just like the returns he claimed to be earning for investors. I asked Drew Baden, who chairs the physics department at the University of Maryland, to take a look... Drew made the histogram above, comparing Madoff's scores to Tiger Woods'. Madoff didn't score as well as Woods (around 15 strokes worse on average) but he was pretty darn consistent -- more consistent than Woods. There are lots of possible explanations for this. Woods was playing on different, presumably more difficult courses. And it looks like Madoff's numbers were all from the same course. Drew points out that Madoff's scores make a nice bell curve, which is what you might expect if he was just a steady golfer. "I guess that if Madoff really faked his scores then he did it with Gaussian fluctuations in mind, and that takes more sophistication and effort than most cheaters would be willing to put into cheating," Drew says. "Of course, this is a guy who was pretty good at cheating, apparently, so I guess anything is possible!" » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 3:10 pm High And DryMy goodness, we're back and the news is all still here. I'll keep this short. Drop more news/blog links in the comments, please. Cancel that bet: Kuwait punts joint venture with Dow Chemical, citing the financial crisis. The Washington Post opens a three-part series on the crash. Up first, a look at the drive to master risk: The Beautiful Machine. Fun you can use: Skateboarders in California take to pools of foreclosed homes. NPR's Mike Pesca was just talking about this very conundrum, now in Paul Krugman's column -- federal government goes to stimulus spending as states cut back. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 2:21 pm Budget Bright Spot: Parking MetersCities and states around are facing tight budgets as tax revenues drop. Maryland is looking at a $400 million shortfall, for instance. And this isn't going to fix things, but the Baltimore Sun (my wife actually) reports that revenue from parking meters have risen 54% over the last four years, to $7 million. And that, the city says, is without raising rates. How? New electronic meters. People tend to pay for more time than they need. And the days of pulling up and finding leftover time on the clock are gone. Of course not everyone is happy about that. And one guy in the story found a way to save himself some money. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Dec 2008 | 2:13 pm JC Flowers and others close to IndyMac deal: source (Reuters)
Source: Yahoo! News: Business | 29 Dec 2008 | 1:06 pm Kuwait Steps BackThe Persian Gulf states have taken huge strides in recent years in showing that they can be aggressive and savvy investors of their petrodollars. The collapse of a $17.4 billion joint venture with Dow Chemical is a step backward.In the 1970s, the oil states were criticized for investing their oil gains in European and North American real estate, especially trophy properties. The last two decades have seen the rise of sovereign wealth funds and other investment vehicles led by sophisticated managers that have invested in a wide range of businesses around the world and have developed infrastructure and a chemical industry in the region. While these funds have had their setbacks—for example, investments in U.S. financial institutions like Merrill Lynch that still had further to fall—they have displayed a savvy, aggressive style of investing equal to older Western and Asian funds. But the withdrawal from the Dow Chemical venture shows that the investment managers are not always in charge. Under the deal, whose final terms were agreed on December 1, the state-owned Petrochemical Industries of Kuwait would have bought a 50 percent stake in Dow Chemical's plastics unit. The transaction was hailed as a sign of long-term bullishness, despite a 70 percent slide in oil prices this year and the continuing financial turmoil. The joint venture had a strong strategic appeal, combining a cost advantage in having a Kuwaiti production partner with Dow's technological expertise and global reach. By Sunday, however, long-term strategy was forgotten, as the Kuwaiti government announced that it was backing out of the deal. Despite being aware of the drop in oil prices and the financial crisis on December 1, the Kuwaiti government had decided that the deal was "very risky." The withdrawal makes the Kuwaitis appear weak and uncertain as strategic investors. Western companies and investment firms seeking to tap Gulf riches may have reason to pause. More troubling for future potential partners is the involvement of politics in the death of the deal. Lawmakers in Kuwait had been using the proposed joint venture to criticize the prime minister, already under attack over accusations of corruption in the government. For Dow Chemical, it must now scramble to salvage its $15 billion acquisition of Rohm & Haas, a specialty chemicals company. Dow had planned to use the proceeds from the Kuwaiti investment to help finance the Rohm deal. Related Links Kuwait's Chemical Reaction Chemistry in Chemicals Malaise Per Gallon Source: Portfolio.com: Top 5 | 29 Dec 2008 | 1:00 pm 5 Best and Worst Addictions to Cultivate During 2009
Sour economic times surface the uglier facets of human nature: Crime, penury, and addictions. We’ll all feel the need to soothe away the pain of collapse for the foreseeable future. Luckily, there are beneficial ways to play out pain-induced compulsions–and less productive ones. The best lifestyle option is always moderation, but if that kind of discipline just isn’t in you, review the addictions below for inspiration: The 5 Best Addictions It’s fun, it’s addictive, and someone usually reads it. What better way to pass time? Best yet, it may function as a portfolio, resume booster, or, if you tend to be of the more verbose ilk, a way to make like-minded friends. And enemies. In sum, blogging is a great way to stay entertained on the cheap. Exercise reaps innumerable health benefits, making it a beneficial addiction to entertain during hard times. Walking and jogging have the lowest overhead (one pair of good sneakers) and give the most instant gratification. For winter, the Nintendo Wii is another good bet—and beats gym fees in the long run. If your hobby is expensive, find a way to do it on the cheap—or replace it entirely. Downgrading equipment and memberships may make your hobby more affordable. If you must give it up, find something equally compelling. Do not turn to cognac (below). When the going gets tough, the tough get religious. Your religious tradition can be an excellent source of support, inspiration, and relief. If you are not religious, your philosophy may provide a similar sense of solace. Many people find addiction to adage extremely helpful during hard times. If your dogma requires that you hate people, however, you may find that a religious addiction fosters paranoia as well as peace. The beliefs you involve yourself—and their consequences—are ultimately your own choice. The 5 Worst Addictions Like wine and beer, cognac can be purchased for cheap. Unfortunately, an addiction to cheap cognac is an actual health hazard that will pickle your liver in a smooth half-decade. Assuming you polish off two bottles of reasonable to excellent cognac a week, an addiction can set you back from $80 to $13,000/week. Better to stick to Pabst Blue Ribbon or Franzia. 2) Prescription Drugs Scarce employment and limited health insurance make this addiction a very expensive prospect. When you receive prescription drugs, research them for addictive potential, and keep an eye on your intake habits. It is very easy to end up with a cabinet full of prescription drugs after only a couple of doctor visits. Don’t get too cozy with your little white pills, or you’ll find your pockets empty in a flash. If you must gamble, try something with a higher probability of winning, like blackjack. Don’t let bright colors and blinky lights fool you–slot machines will almost invariably rip you off. 4) Shopping This addiction might serve the macroeconomy well, but in an unstable employment environment, individuals need to squirrel away money for hard times. Foresaking those new Seven jeans and Burberry boots in favor of cheaper, albeit less trendy, duds will go a long way towards keeping your personal finances in the black. You may want to give up and join the bankrupt masses, but if you can spare yourself this trouble, it’s well worth looking less suave for a little while. 5) Doctors’ visits Although unemployment numbers have gone up, healthcare costs have gone anywhere but down. Check out these frightening statistics from the National Coalition on Healthcare: • Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem. • A new survey shows that more than 25 percent said that housing problems resulted from medical debt, including the inability to make rent or mortgage payments and the development of bad credit ratings. • About 1.5 million families lose their homes to foreclosure every year due to unaffordable medical costs. It is a fundamentally bad time to develop hypochondria, Munchausen’s, or any other syndrome that doesn’t kill you, but takes you to the doctor all the time. If you must get sick, make sure it is acute and ultimately harmless, or that it’s something your insurance covers. Preventative measures such as exercise, relaxation, and healthy eating go a long way to prevent chronic problems. Source: Business Pundit | 29 Dec 2008 | 12:51 pm
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