UK economy fall 'frightening'

Business leaders paint a bleak picture of the UK economy, with a survey suggesting a "frightening deterioration".
Source: BBC News | Business | World Edition | 13 Jan 2009 | 1:09 pm

UK's trade gap hits record level

The UK's trade deficit with the rest of the world reached a record a level in November, official figures show.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 1:06 pm

Germany agrees 50bn euro stimulus

German Chancellor Angela Merkel unveils a stimulus package worth about 50bn euros including infrastructure investment.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 1:04 pm

avVenta Worldwide Announces $20 Million Investment By Private Equity Firm TZP Group LLC

Global Market Leader in Digital Production and Interactive Services Announces Strategic Funding for Global Expansion CHARLESTON, S.C., Jan. 13 /PRNewswire/ --
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:58 pm

Stock futures point lower ahead of trade report (AP)

AP - Wall Street appeared ready to extend its losses Tuesday as investors already uneasy about weak corporate profit reports awaited a reading on overseas demand for U.S. products.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 12:55 pm

Sales Focus Incorporated Signs Bermuda Department of Tourism

COLUMBIA, Md., Jan. 13 /PRNewswire/ -- Sales Focus Incorporated, the pioneer of the Sales Outsourcing industry, announced today they have secured Bermuda Department of Tourism as
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:55 pm

Russia and Ukraine reignite gas dispute

A fresh dispute broke out between Russia and Ukraine over gas transit, threatening to upset the resumption of supplies to Europe announced by both sides earlier in the day
Source: Financial Times - US homepage | 13 Jan 2009 | 12:51 pm

Rebuilding a ravaged agency

On the campaign trail, President-elect Barack Obama pledged that his efforts to rebuild America's tattered economy would "start with our small businesses on Main Street." Maine businesswoman Karen Mills, Obama's nominee to head the Small Business Administration, will be his point person for that effort. But in a time of tremendous need among small businesses for government assistance, Mills is set to inherit an agency caught in a quagmire.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 12:50 pm

EADS CEO says firm pulled out of U.S. defense deal

Aerospace and defense giant EADS pulled out of a major U.S. defense acquisition at the last minute at the end of 2008 as the board chose to preserve cash, CEO Louis Gallois revealed on Tuesday.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 12:50 pm

Pyramid Hires New Vice President of Sales and Marketing

MERIDEN, Conn., Jan. 13 /PRNewswire/ -- Pyramid Technologies ( href="http://www.pyramidtechnologies.com">http://www.pyramidtechnologies.com ), an established leader in the...
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:50 pm

Keeping Your Balance as Markets Wobble: Advisor Suggests Re-Jigging Your Portfolio Now to Help Your Outcome When Shares Pick Up Again

ATLANTA, Jan. 13 /PRNewswire/ -- For many investors, the market's recent swoon has not only shaken their confidence, but thrown their portfolio out of alignment. According...
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:48 pm

Lexmark quarterly results to fall short

NEW YORK (Reuters) - Lexmark International Inc warned that its fourth quarter results would be lower than expected, due to weak computer printer sales and increased restructuring costs.
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:45 pm

Lexmark quarterly results to fall short

NEW YORK (Reuters) - Lexmark International Inc warned that its fourth quarter results would be lower than expected, due to weak computer printer sales and increased restructuring costs.
Source: Reuters: Business News | 13 Jan 2009 | 12:45 pm

Jacobs Receives Contract for the North County Corridor in Stanislaus County, Calif.

PASADENA, Calif., Jan. 13 /PRNewswire-FirstCall/ -- Jacobs Engineering Group Inc. (NYSE: JEC) announced today that it received a contract from a Joint Powers Authority (JPA) to...
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:45 pm

Hiru Corporation (HIRU) Secures Contract Worth $800,000 USD

PRATO, Italy, Jan. 13 /PRNewswire-FirstCall/ - Hiru Corporation (HIRU) href="http://www.hirucorporation.com">www.hirucorporation.com is pleased to announce that it has...
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:45 pm

Jacobs Receives Contract to Perform Traffic and Revenue Consulting Services in Georgia

PASADENA, Calif., Jan. 13 /PRNewswire-FirstCall/ -- Jacobs Engineering Group Inc. (NYSE: JEC) announced today that it received an on-call contract with the Georgia State Road and
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:45 pm

Elan mulls merger over €1bn debt worries

Elan has hired Citigroup to work out a new financial strategy that might include a sale or merger, as the Irish biotech company struggles with investor disappointment over a new multiple sclerosis drug and mounting concern over its ability to repay $1 billion ($£680 million) in borrowings.
Source: Latest Business News from Times Online | 13 Jan 2009 | 12:44 pm

Small business sentiment falls in December, profits tumble

WASHINGTON (Reuters) - Small business sentiment deteriorated in December, posting its second lowest reading in 35 years, highlighting the worst post-war economic climate that has seen a...
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:40 pm

Liz Claiborne Inc. Completes Amendment and Extension of Its Bank Revolving Credit Facility

- Extends Maturity Date to May 31, 2011 - Eliminates Leverage Covenant and Asset Coverage Covenant - Provides for Secured Asset-Based Structure
Source: RSS feed - channel BNewsBusiness | 13 Jan 2009 | 12:34 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 12:31 pm

Big think: 12 experts on how to fix SBA

The Small Business Administration has become a quagmire of Washington politics. We asked entrepreneurship experts what Karen Mills should do to fix the agency.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 12:31 pm

Russian gas to Europe 'blocked'

Russian gas giant Gazprom says Ukraine has blocked deliveries of gas to Europe, scotching hopes of an end to the crisis.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 12:29 pm

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

Among the companies whose shares are expected to see active trade in Tuesday's session are the consumer-products companies as well as Alcoa, CSX, Elan, KLA-Tencor, Lexmark, Targanta and WellPoint.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 12:25 pm

Forging a lower stock open

U.S. stocks were set to open lower Tuesday, as investors worried about weak corporate profits and falling commodity prices in the wake of Alcoa's fourth-quarter loss, and fretted about the outlook for jobs as well.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 12:21 pm

Early Bird Analyst Upgrades (ATML, ELN, FDP, ICLR, SLW, SMA)

These are some of the top pre-market analyst upgrades from Wall Street which we have seen this Tuesday morning with more than two hours until the open:

• Atmel (NASDAQ: ATML) Started as Buy at Goldman Sachs.
• Elan (NYSE: ELN) Raised to Buy at Canaccord.
• Fresh Del Monte (NYSE: FDP) Started as Buy at Jefferies.
• Icon (NASDAQ: ICLR) Raised to Buy at Goldman Sachs.
• Silver Wheaton (NYSE: SLW) Raised to Buy at UBS.
• Symmetry Medical (NYSE: SMA) Raised to Market Perform at Wachovia.

Jon C. Ogg
January 13, 2009

Source: 24/7 Wall St. | 13 Jan 2009 | 12:19 pm

Early Bird Analyst Downgrades (ADBE, BLKB, GLW, DE, ERIC, PCG, PPDI, PLD)

These are some of the analyst downgrades we have seen from Wall Street this Tuesday morning with more than two hours until the open:

• Adobe Systems (NASDAQ: ADBE) Cut to Underperform at FBR.
• Blackbaud (NASDAQ: BLKB) Started as Sell at Maxim Group.
• Corning (NYSE: GLW) Cut to Market Weight at Thomas Weisel.
• Deere & Co. (NYSE: DE) Cut to Neutral at JPMorgan.
• Ericsson (NASDAQ: ERIC) Cut to Sell at UBS.
• PG&E (NYSE: PCG) Cut to Neutral at Goldman Sachs.
• Pharmaceutical Product Development (NASDAQ: PPDI) Cut to Neutral at Goldman Sachs.
• ProLogis (NYSE: PLD) Cut to Underweight at JPMorgan.

Jon C. Ogg
January 13, 2009

Source: 24/7 Wall St. | 13 Jan 2009 | 12:16 pm

Financials tumble ahead of end to short-selling

Financial stocks fell heavily in London on Tuesday as the end of the government's ban on short selling neared.Regulators banned the practice before government money was used to recapitalise banks last...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 12:12 pm

Oil sinks below $37 as commodities retreat

Oil prices continued to retreat, dropping below the $37 a barrel level, while base metals fell and gold eased as more weak economic data pointed to a deepening global economic downturn
Source: Financial Times - US homepage | 13 Jan 2009 | 12:11 pm

Oil sinks below $37 as commodities retreat

Oil prices continued to retreat, dropping below the $37 a barrel level, while base metals fell and gold eased as commodity markets staged a broad based retreat on Tuesday as more weak economic data pointed...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 12:11 pm

World Economic Forum warns of rising risks

The risk of serious fiscal crises in developed countries has 'doubled if not tripled', threatening countries such as the US, UK, France, Italy, Spain and Australia, the World Economic Forum said
Source: Financial Times - US homepage | 13 Jan 2009 | 12:08 pm

Israeli army moves into Gaza City

Israel is extending its 18-day campaign into built-up areas of Gaza City after sending thousands of reserve soldiers into the Hamas-controlled territory and signalling a further escalation of its offensive against the Islamist group
Source: Financial Times - US homepage | 13 Jan 2009 | 11:59 am

RBS to announce Bank of China share deal

The Royal Bank of Scotland (RBS) is poised to announce the sale of around £1.8 billion worth of shares in the Bank of China.
Source: Latest Business News from Times Online | 13 Jan 2009 | 11:58 am

Currencies: Dollar and yen attract buyers as global equities skid further

Currency traders resort to one of 2008’s market themes, buying the Japanese yen and the U.S. dollar amid fresh signs of falling global equities.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 11:56 am

Sony may post $1.1 billion operating loss (Reuters)

Reuters - Japan's Sony Corp (6758.T) will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years, due to sluggish sales and a stronger yen, a person with knowledge of the matter said.

Source: Yahoo! News: Business | 13 Jan 2009 | 11:51 am

Sony may post $1.1 billion operating loss (Reuters)

Reuters - Japan's Sony Corp (6758.T) will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years, due to sluggish sales and a stronger yen, a person with knowledge of the matter said.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 11:51 am

Sony may post $1.1 billion operating loss

TOKYO (Reuters) - Japan's Sony Corp will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years, due to sluggish sales and a stronger yen, a person with knowledge of the matter said.
Source: Reuters: Business News | 13 Jan 2009 | 11:51 am

Sony: May lose $1.1B

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 11:51 am

London Markets: U.K. metal firms, banks pressure London stocks

Shares in London’s top index declined sharply on Tuesday as a fall in Chinese exports took the luster away from the metals sector and banks traded with heavy losses.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 11:50 am

New Zealand dollar hit by S&P warning

The New Zealand dollar plunged more than 3 per cent against both the Japanese Yen and the US dollar on Tuesday, after ratings agency Standard & Poor's warned it could downgrade the Kiwi's foreign currency...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 11:48 am

World markets sink on US earnings concerns (AP)

AP - World markets sank Tuesday amid ongoing fears about the financial health of leading U.S. businesses after aluminum company Alcoa Inc. kicked off the fourth quarter earnings season in disappointing fashion.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 11:45 am

The 2009 economy and your wallet

Under normal circumstances, the election of Barack Obama would have meant a lot for your wallet. As a candidate, Obama promised to shift the burden of taxes toward the affluent, get health coverage to the uninsured and slap tougher regulations on financial products.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 11:45 am

Spain investigating Santander over Madoff: report

NEW YORK (Reuters) - Spanish prosecutors are investigating Banco Santander's loss of more than 2.3 billion euros of its clients' money by investing with alleged swindler Bernard Madoff, The Wall Street Journal reported on Monday.
Source: Reuters: Business News | 13 Jan 2009 | 11:41 am

Retirement investing made simple

Question: Since I'm getting close to retirement, I've moved my money into the target-date retirement fund offered in my company's 401(k). Do you think these funds are good investments? --Lucia Cannon, Johnson City, New York
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 11:40 am

RBS selling $2.4 billion Bank of China stake: sources (Reuters)

Reuters - Royal Bank of Scotland is selling about $2.4 billion worth of shares in Beijing-controlled Bank of China (3988.HK) on Tuesday, according to market sources and a term sheet for the deal seen by Reuters.

Source: Yahoo! News: Business | 13 Jan 2009 | 11:39 am

RBS selling $2.4 billion Bank of China stake: sources

HONG KONG/LONDON (Reuters) - Royal Bank of Scotland is selling about $2.4 billion worth of shares in Beijing-controlled Bank of China on Tuesday, according to market sources and a term sheet for the deal seen by Reuters.
Source: Reuters: Business News | 13 Jan 2009 | 11:39 am

Chaos Theory Takes Hold Of Corporate Earnings

If a world where corporate earnings are completely predictable is a "10" and a world where they cannot be predicted at all is a "1", most of the last several years have been in the "7" or "8" range. That has changed so much in the last two quarters that predictions have become hard to make and going into this earnings season the job may become impossible.

Chaos theory says that behavior that appears to be random is not. The future dynamics of chaotic systems are always defined by their initial conditions. Even the most unruly process cannot defy prediction. That may work for people who have PhDs in math but for the balance of investors chaos is chaos, plain and simple.

With just a few days to go until the nation's largest banks report earnings, forecasts for how they will do diverge wildly. Of the analysts covering Citigroup (C) the most optimistic believe that firm will lose $.47 a share. The most pessimistic number is a loss of $1.57. For a company covered by as many researchers as Citi is, that spread is extraordinary.

The forecasts for Bank of America (BAC) are even more troubling for investors who want some comfort in certainty even if the numbers are bad. The high estimate for losses in the last quarter is $.25. One analyst is taking the bullish case with $.59 a share profit. No one believe that the best numbers so it is hard to understand why they are even still on the books.

The circumstance for most large cap stocks is the same. Spreads between high and low forecasts for the same company have widened even for firms which have had highly predicable numbers. For Microsoft (MSFT) there is an 8-cent difference between best and worst case scenario of $.45 per share profit and $.53. For AT&T (T) the numbers range from $.63 per share to $.69 per share. This may not seem like much, but for a corporation with revenue of $125 billion a year and 5.9 billion shares outstanding, it is.

The ability to predict earnings probably deteriorates with the economy. Some professor at MIT has probably proved that but he is not telling. He has studied the dynamics of the correlation between EPS and GDP so that he can game the system and make hundreds of millions of dollars day trading S&P futures. His secrets will accompany him to the grave.

None of this should make stockholder fell better. Chaos and the difficulty of making predictions in chaotic time has even the most gifted traders, the hedge funds and institutions, by the throat and it throttling the life out of investors. In a market in which nothing is certain or nearly certain the people who own equities become more panicked by the day and their trading becomes less disciplined.

It is like having The World Series of Poker played by four-year-olds.

Douglas A. McIntyre

Source: 24/7 Wall St. | 13 Jan 2009 | 11:36 am

Europe Markets: Shares broadly lower in Europe for a fifth straight session

European shares' losing streak enters a fifth straight session, with banks trading conspicuously lower. Resources shares also come under selling pressure.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 11:33 am

Ready meals and basics buoy food producers

A clutch of solid figures from food manufacturers, including Northern Foods and Premier Foods as well as Glanbia, the Irish dairy firm, reassured the market this morning that consumer demand was holding up for ready meals and staples, such as bread and cheese.
Source: Latest Business News from Times Online | 13 Jan 2009 | 11:29 am

The UAW Finds Out Detroit Is "Too Big To Fail"

The UAW is dragging its feet in negotiations with GM (GM). That could be risky business. The federal government reserved the right to put the car company into bankruptcy if it did not come up with a reasonable restructuring by March 31. GM has to get the union and creditors in line or the cost cuts necessary won't be possible.

But, the UAW does not seem to be in any particular hurry, which could put tens of thousand of its members' jobs at risk.

According to The Wall Street Journal, "Although the UAW has said it is ready to negotiate, UAW President Ron Gettelfinger said Monday it is unclear what kind of reductions it will have to agree to."

The people at the house that Walter Reuther built are cagey. They know that the new Congress and administration will be wrestling with an economy which is surrendering over 500,000 jobs a month. While a stimulus package may fill in that hole and begin to build on that ground, the process could take several quarters. In the meantime, the federal government will do everything it can to stop the bleeding of jobs out of the economy.

By most calculations, the failure of Chrysler and GM (GM) would cost one million jobs. Some estimates put that at two million. Either way, the economy could not handle it without tipping toward a depression. The UAW knows that it holds that card and it is an ace.

Obama is willing to spend $700 billion to create four million jobs. The mathematics of Detroit is that $30 million or $40 million could keep The Big Three in business through the entire year. Keeping all of auto workers employed comes at a bargain.

The UAW is not going to do any real bargaining. It can save the jobs of its members by doing nothing at all.

Douglas A. McIntyre

Source: 24/7 Wall St. | 13 Jan 2009 | 11:27 am

Oil nears $36 a barrel

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 11:19 am

UK trade gap widens to record £8.3bn

Britain’s trade deficit widened to a record level in November after the fall in the value of sterling failed to boost exports as demand from other countries dwindled.
Source: Latest Business News from Times Online | 13 Jan 2009 | 11:15 am

Russia gas 'flows back to Europe'

Russian gas giant Gazprom resumes some supplies through Ukraine to Europe, after they were cut for nearly a week.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 11:10 am

Indications: U.S. stock futures point to fifth loss in a row

U.S. stock futures point to a fifth straight loss, with the grim earnings news from Alcoa and CSX taken as a harbinger of worse profit news to come.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 11:10 am

The Wisdom Of Panic: Firing CEOs When The Chips Are On The Line

Source: 24/7 Wall St. | 13 Jan 2009 | 11:08 am

Europe's Tesco, Metro report limited sales growth

European retail giants Tesco and Metro both reported growth in sales to end 2008, helped by a strong performance from their international operations, though the results still lagged behind some peers.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 11:05 am

Too little, too late for "green" Big 3?

DETROIT (Reuters) - Automakers at the world's premier auto show have pinned their hopes on "green" models but for some companies the immediate future is shaping up as a battle for survival.
Source: Reuters: Business News | 13 Jan 2009 | 11:01 am

UK oil explorers in Ugandan find

Oil explorers Heritage and Tullow report a "world class discovery" of oil in Uganda.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 11:00 am

Obama's digital health push

President-elect Barack Obama, as part of the effort to revive the economy, has proposed a massive effort to modernize health care by making all health records standardized and electronic.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 10:57 am

World stock markets skid on earnings jitters (AFP)

AFP - Global equity markets sank on Tuesday, with Asia and Europe spiralling lower after fresh losses overnight on Wall Street, as worries mounted about weak corporate earnings, analysts said.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 10:51 am

European stocks erase gains for 2009

European equities erased their gains for 2009 on Tuesday as gloomy investor sentiment tracked sharply lower commodities prices and yesterday's losses in the US and Asia.The benchmark FTSE Eurofirst 300...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 10:47 am

The "Green" Revolution In Cars Dies Off

Up until now, the biggest obstacle to the sale of hybrid cars is that some Americans think the people who drive them are sissies. That may be true, but Toyota (TM) has sold more than one million of its Prius models worldwide. Honda is not far behind with its less expensive models. The Big Three could not fit all their electric and ethanol-powered cars onto the showroom floor at the Detroit Car Show.

Toyota now admits that the sales of its Prius are dying in the US. That is because of two things. One is that no cars are selling at all. The other is that hybrids are expensive. The price of all the extra technology gets passed on to the consumers.

US auto firms are getting into the "green" car business at just the wrong time, which is consistent with the rest of their behavior over the last four decades. Oil prices are moving back toward $30 and many economists believe this that will be the new normal. China and India have cut imported oil as their economies slow. Americans would rather ride bikes that drive cars.

When Americans do look at a new car, their vision is likely to be short-sighted. Gasoline is back under $1.70 and if oil moves down further prices will fall more. If a hybrid runs $5,000 more than a traditional gas car, who is going to pay that difference to save the environment. No one, particularly when the cost of filling up is down by more than half what is was last summer. Who cares what happens in 2015?

The green car revolution was based on the premise that the average man could help the Amazon rain forests and save money on driving at the same time.

Send a memo to the monkeys. The trees are going away.

Douglas A. McIntyre

Source: 24/7 Wall St. | 13 Jan 2009 | 10:40 am

Infosys sales tumble on US downturn

Infosys, India's second-largest IT outsourcer, posted its first quarter-on-quarter fall in revenue in dollar terms today, underscoring how the US slowdown is hitting the embattled sector.
Source: Latest Business News from Times Online | 13 Jan 2009 | 10:36 am

Backing Britain?

How should a nation react to tough times?
Source: BBC News | Business | World Edition | 13 Jan 2009 | 10:31 am

Rio defers Australian development

Minding giant Rio Tinto suspends development of a copper and gold mine, a day after postponing an iron ore development.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 10:23 am

HK index stretches losing streak with 2.2 pct drop (AP)

AP - Hong Kong shares extended their losing streak Tuesday, with the main stock index falling more than 2 percent Tuesday, as Asian markets slumped.
Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 10:22 am

RBS close to selling China bank stake

The government-controlled bank is hoping to raise as much as $2.6bn from the sale its 4.3% stake in Bank of China after the market closes in Hong Kong
Source: Financial Times - US homepage | 13 Jan 2009 | 10:22 am

China's M2 growth rate accelerates in December

The pace of growth in China’s money supply accelerated in December, reflecting the impact of recent cuts in interest rates and bank reserve requirements, analysts said.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 10:20 am

Stock futures point to losses on earnings fears (Reuters)

Reuters - Stock index futures pointed to a lower open on Wall Street on Tuesday on mounting fears over corporate results, while a drop in oil prices is likely to weigh on energy stocks.

Source: Yahoo! News: Business | 13 Jan 2009 | 10:18 am

Stock futures point to losses on earnings fears

(Reuters) - Stock index futures pointed to a lower open on Wall Street on Tuesday on mounting fears over corporate results, while a drop in oil prices is likely to weigh on energy stocks.
Source: Reuters: Business News | 13 Jan 2009 | 10:18 am

Stock futures point to losses on earnings fears (Reuters)

Reuters - Stock index futures pointed to a lower open on Wall Street on Tuesday on mounting fears over corporate results, while a drop in oil prices is likely to weigh on energy stocks.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 10:18 am

Japan's Nikkei drops nearly 5%

Tokyo's benchmark Nikkei average tumbled Tuesday, giving up nearly 5% of its value after new government figures showed a dramatic decline in Japan's international trade.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 10:17 am

Oil drops towards $36 on falling demand expectations

LONDON (Reuters) - Oil fell toward $36 a barrel on Tuesday to its lowest level in three weeks as further signs the world economy was slowing sharply dampened demand expectations.
Source: Reuters: Business News | 13 Jan 2009 | 10:09 am

Tesco sees 'challenging' trading

Supermarket Tesco reports UK sales growth of 2.5% over the Christmas period after seeing "challenging trading conditions".
Source: BBC News | Business | World Edition | 13 Jan 2009 | 10:01 am

FTSE 100 shares in the red (AFP)

AFP - Shares in London were in the red at the start of trade on Tuesday as commodity prices took a beating and investors worried about a global economic slowdown.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 10:00 am

Elan rallies as Irish drugmaker plans review

Shares of Elan rally as much as 17% in Dublin as the Irish drugmaker puts itself on the block following the troubles surrounding key multiple sclerosis and Alzheimer’s drugs.

Source: MarketWatch.com - Top Stories | 13 Jan 2009 | 9:51 am

The Last Pillar Of The Chinese Economy Falls

Source: 24/7 Wall St. | 13 Jan 2009 | 9:49 am

World stocks fall on earnings worries (Reuters)

Reuters - Fears of steep losses at U.S. bank Citigroup and Asian industry giants such as Sony pummeled shares on Tuesday and bolstered government debt.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 9:37 am

Nikkei leads Asia lower on earnings woes

Japanese stocks led major Asia-Pacific markets lower on Tuesday after reports that Sony and Toshiba could post losses this fiscal year and the yen strengthened and breached Y90 levels.The Nikkei 225 closed...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 9:34 am

The case for a quick economic recovery

There is no debate that the U.S. economy is in terrible shape at the moment.
Source: Business and financial news - CNNMoney.com | 13 Jan 2009 | 9:32 am

Hovis revamp boosts Premier Foods

UK food producer Premier Foods says a successful relaunch of the Hovis bread brand helped to lift sales in 2008.
Source: BBC News | Business | World Edition | 13 Jan 2009 | 9:24 am

Labour to guarantee £20bn of loans to small business

The Government is set to guarantee billions of pounds of loans to small businesses in an effort to boost the credit available to companies across the UK.
Source: Latest Business News from Times Online | 13 Jan 2009 | 9:23 am

Retailer Metro reports 4Q sales growth (AP)

AP - German retailer Metro AG said Tuesday its fourth quarter sales grew 3 percent, contributing to overall sales growth of nearly 6 percent for 2008.
Source: Yahoo! News: Business | 13 Jan 2009 | 9:17 am

Media Digest 1/13/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Detroit's efforts to build "green" cars may come too late.

Reuters reports that Obama is seeking the $350 billion still left in the TARP.

Reuters writes that prosecutors will appeal a ruling keeping Madoff out of jail.

Reuters reports that Russia has restarted gas flow through the Ukraine.

Reuters reports that Alcoa (AA) reported a loss due to the economy.

Reuters reports that Sony (SNE) may post a $1.1 billion operating loss.

Reuters reports that JP Morgan (JPM) will release financial results six days early.

Reuters reports that the cost of bankruptcy financial is rising.

Reuters reports that GM (GM) is planning to return to leasing cars in the US.

The Wall Street Journal reports that officials are looking into Banco Santander's ties with Madoff.

The Wall Street Journal reports that stock brokers may be essential to a market recovery.

The Wall Street Journal reports that CEO firings are rising.

The Wall Street Journal reports that UAW talks are slowing the GM (GM) restructuring.

The Wall Street Journal reports that China's imports and exports fell sharply.

The Wall Street Journal reports that AIG (AIG) faces hurdles in the sale of one of its units.

The Wall Street Journal reports that the UAW backs having a "car czar".

The Wall Street Journal reports that the head of Seagate stepped down.

The Wall Street Journal reports that November trade data is likely to reflect the global recession.

The Wall Street Journal reports that trade may begin to hurt the US GDP.

The Wall Street Journal reports that The Hartford is trying to take risk out of annuities.

The Wall Street Journal reports that the FDIC is pushing banks to show how they are using government aid to help homeowners.

The Wall Street Journal reports that The World Bank has blacklisted Wipro as a supplier.

The Wall Street Journal report that the FTC wants to restore the Wild Oats Brand.

The New York Times reports that Citigroup's (C) deal to merge brokerage businesses with Morgan Stanley (MS) has brought back many old demons for investors in the bank.

The New York Times reports that Honda (HMC) released a hybrid to compete with the Toyota (TM) Prius.

The New York Times report that the big Gulf states including Saudi Arabia, are putting big money into green technology.

The New York Times reports that Germany is about to release a large stimulus package.

The FT reports that top traders hold the key to success at many banks.

The FT reports that part of the oil industry was hit by higher prices.

Bloomberg reports that the US economy may shrink 1.5% in 2009.

Bloomberg writes that IBM (IBM) and Accenture may take business fro struggling Stayam.

Douglas A. McIntyre

Source: 24/7 Wall St. | 13 Jan 2009 | 9:03 am

Northern Rock shareholders seek redress in court (AP)

AP - Shareholders in nationalized mortgage lender Northern Rock were going to court Tuesday to try to force the British government to compensate them for their now-worthless stocks.
Source: Yahoo! News: Business | 13 Jan 2009 | 8:50 am

International arm boosts Tesco sales

Tesco on Tuesday confirmed its place towards the bottom end of the league table for UK food retailers over the Christmas period, reporting a 2.5 per cent increase in UK like-for-like sales in the seven...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 8:48 am

Asia Markets And Europe Open 1/13/2009

Most markets in Asia were sharply lower.

The Nikkei fell 4.8% to 8,414,

The Hang Seng was off 2% to 13,681.

The Shanghai Composite fell 2% to 1,863.

In Europe, at the open, the FTSE was down .9% to 4,388. The Dax dropped .5% to 4,696. The CAC was off .5% to 3,229.

Data from Reuters and MarketWatch.

Douglas A. McIntyre

Source: 24/7 Wall St. | 13 Jan 2009 | 8:28 am

Sony shares fall on talk of losses

Shares in Sony fell by 8.9 per cent in Tokyo trading following local media reports that it will make a Y100bn ($1.1bn) operating loss in the year to March 2009.The reports add to a widespread belief amongst...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 8:24 am

Sony shares fall on talk of losses

Shares in the Japanese consumer electronics group fell by 8.9% in Tokyo following local media reports that it will make a Y100bn operating loss in the year to March 2009
Source: Financial Times - US homepage | 13 Jan 2009 | 8:24 am

Gas prices in California jump despite oil's drop

The average price soars 25 cents to $1.988 a gallon in less than a month, while the U.S. average rises 10 cents to $1.784. Reduced production of California-grade gas is blamed. ...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 8:00 am

Batteries are seen as key to future of electric vehicle market

GM and Toyota push development plans while Ford says it will continue to use a supplier. The car world is stepping...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 8:00 am

Abbott Laboratories to acquire Advanced Medical Optics

It will buy the Santa Ana firm to expand its eye care offerings, including laser vision correction. Medical products...
Source: RSS feed - channel BNPaperBusiness | 13 Jan 2009 | 8:00 am

Satyam dips; no quick-fix seen

HYDERABAD, India (Reuters) - Shares in India's Satyam Computer Services edged lower on Tuesday, after jumping 44 percent in the previous session, as a new government-appointed board got down to the business of trying to put the software services exporter back on track after a damaging fraud.
Source: Reuters: Business News | 13 Jan 2009 | 7:52 am

Japan stocks tumble on US stock losses, higher yen (AP)

AP - Japanese stocks tumbled Tuesday, as Wall Street's losses, a stronger yen and the bleak outlook for earnings triggered selling in blue chip exporters and banks.
Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 7:51 am

Australian stocks: Market closes 28 points lower

MELBOURNE - The Australian stock market closed lower on Tuesday, weighed upon by a weaker resources sector. At the 1615 AEDT close, the benchmark S&P/ASX200 index was down 28.7 points, or 0.78 per cent, at 3,654.6 and the broader...
Source: New Zealand Herald - Business | 13 Jan 2009 | 7:44 am

German stock market operator mulling Polish operations (AFP)

AFP - The German stock market operator Deutsche Boerse wants to invest in Poland, either by taking a stake in or launching a venture with its counterpart in Warsaw, a press report said on Tuesday.

Source: Yahoo! News: Stock Markets News | 13 Jan 2009 | 7:34 am

German stock market operator mulling Polish operations (AFP)

AFP - The German stock market operator Deutsche Boerse wants to invest in Poland, either by taking a stake in or launching a venture with its counterpart in Warsaw, a press report said on Tuesday.

Source: Yahoo! News: Business | 13 Jan 2009 | 7:34 am

Tesco reveals worst Christmas since 1990s

Tesco, Britain's largest supermarket group, announced plans today to create 10,000 new jobs by December despite suffering its most disappointing Christmas since the early 1990s.
Source: Latest Business News from Times Online | 13 Jan 2009 | 7:21 am

Spain investigating Santander over Madoff: report (Reuters)

Reuters - Spanish prosecutors are investigating Banco Santander's loss of more than 2.3 billion euros of its clients' money by investing with alleged swindler Bernard Madoff, The Wall Street Journal reported on Monday.

Source: Yahoo! News: Business | 13 Jan 2009 | 7:12 am

China's exports slump in sharpest decline in decade

China’s exports, an engine of the growth that has helped to transform a poverty-stricken backwater into the world’s fourth-largest economy, slumped last month by their fastest pace in a decade.
Source: Latest Business News from Times Online | 13 Jan 2009 | 6:56 am

NZ stocks: Shares swing back into black

The New Zealand sharemarket recovered this afternoon to close in the black, despite declines of more than 1 per cent across the Tasman. The benchmark NZSX-50 index closed up 6.37 points, or 0.2 per cent, at 2774.64 on turnover...
Source: New Zealand Herald - Business | 13 Jan 2009 | 6:07 am

Currency: Dollar slides to month low

The New Zealand dollar tumbled to a one-month low today as investors were caught out by surprisingly bad business confidence and a warning from Standard & Poor's. By 5pm, the kiwi was at US56.13c, down from US58.58c late yesterday...
Source: New Zealand Herald - Business | 13 Jan 2009 | 5:40 am

How to Help Your Parents Through the Crisis, Part 2 (Screens)

EDITOR’S NOTE: With their retirement savings crushed by the 2008 market crash, millions of older adults are turning to their children for help. SmartMoney Senior Editor Beverly Goodman is one of those children, and she recently embarked on this special report for SmartMoney.com and the February issue of SmartMoney magazine. Here’s her story of providing financial advice to her mother – a logistical and emotional minefield that’s challenging even for a veteran financial journalist.

PREVIOUSLY: Goodman and her mother confronted the news.

My mother Vida and I are sitting in the office of her Ameriprise adviser, a space that looks a lot like a suburban doctor’s office with its office-park location and nondescript, beige and gray decor. I’ve convinced my editor that my mother’s financial struggles—emblematic of what so many Americans are facing—were worth exploring. We’ll visit three financial planners (all knew I worked as a financial journalist, though none was told I was reporting a story until after our visit) and see what sort of advice we get.

First up is her current adviser, Jeff, who’s one of 10,000 advisers affiliated with Ameriprise Financial, a national chain of planners spun off from American Express in 2005. My mother dressed in pinstripe suit pants and a sweater set for the occasion—this is important business, after all—and chided me about my jeans. Her adviser, though, paid very little attention to me. In fact, he paid little attention to my mother. Despite eight years of working together, the two exchanged only the briefest of pleasantries, and within minutes he had spread out a stack of detailed Morningstar research reports on each of her funds. Mom was immediately overwhelmed, and Jeff didn’t seem to notice that his circling of various numbers and pointing at colorful pie charts was distancing her, not engaging her.

To his credit, Jeff was trying to show my mother the overlap in holdings a few of her funds had. Not a bad point, but there are much larger issues at stake. Like why, for instance, someone my mother’s age had 70 percent of her portfolio in stocks, instead of no more than 50 percent, which most advisers would prefer. Or why anyone in the 15 percent tax bracket would need the benefit of not one but two municipal bond funds. And why the heck hadn’t he told her to sell the Ford preferred stock he’d encouraged her to buy years ago? Jeff’s answers, on the surface, weren’t terrible. He acknowledged she had too much in stock; it was my mother who had prompted the move to munis by complaining of paying tax on funds that were losing money; and at this point she had lost so much in Ford, it might pay to see if it came back, though he was amenable to selling it.

Needing Advice, Not Just Options

All of this begs the question: What should investors expect from their advisers? My mother wanted actual advice (though in Jeff’s defense, he says she didn’t always act on his advice). She doesn’t know how much she should have in stocks or which funds are the best; that’s why she’s paying for a planner. “An adviser needs to understand the goals and fears of his clients and really hear what they’re asking,” says Carol Anderson, founder of the nonprofit organization Money Quotient, which trains financial planners.

But Jeff seemed loath to provide any real direction, preferring instead to have my mother decide between options he presented without making a concrete recommendation. (An Ameriprise spokesperson says its advisers are supposed to give clients options, but “every situation is unique” in terms of direction.) The only notion Jeff was firm about was “sitting tight” and doing nothing—for two to three years. His rationale: Moving from stocks to bonds right now would mean selling a big piece of her portfolio at a loss and buying funds that wouldn’t return as much, making it that much harder, if not impossible, for her to recoup her losses. “What if the market doesn’t recover in two to three years?” my mother asked. “I’ll be a gym teacher,” Jeff responded.

My mother was once a teacher—and never dreamed she’d find herself managing a portfolio, with her retirement dependent upon her own investing savvy instead of an assured pension. She taught kindergarten and first grade for seven years before having children of her own (I also have a younger sister). She left teaching to raise us, cashing out her $7,000 pension to put a down payment on a house. But when times were tough and she needed to go back to work, she couldn’t find a teaching job. She tried for many years, working as a substitute teacher, applying to a variety of schools, to no avail. At $32,000, the salary the teacher’s union mandated for someone with her experience and education (a master’s degree), she was too pricey for many of the districts in our area.

Paying to Do Homework

So she took a computer class at a local nonprofit and changed gears—now she works in the information technology department of a company that distributes industrial tools. And she loves it. What she doesn’t love—along with many doctors, filmmakers, realtors and countless other Americans—is having to work a second job, essentially, as a money manager. Paying someone else to do the work is an option, but the standard 1 percent of assets per year can seem costly, particularly when you’re losing money and not getting much advice beyond “sit tight.” Besides, as my mother often grouses, “you still have all this homework to do.”

That’s a sign that you may need a different financial planner, according to money coach Mellan. “Your relationship with your financial adviser is extremely important,” she says. “It’s not unlike finding a therapist.” You want an empathetic listener, someone who makes sure you understand everything without feeling stupid and who is willing to move at your pace. People’s relationship to money can be fraught with emotion, Mellan says, and having an adviser tell you to buy this and sell that won’t address a client’s entire financial life.

TOMORROW: Is our financial planner, um, too young?

Our special report continues all this week as Goodman recounts the process of getting her mother back on track. Following that, she will chronicle her ongoing experiences in an online diary. ALSO READ: Parents in Crisis: Finding the Right Adviser.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 13 Jan 2009 | 5:00 am

Mortgages Rates, Variable Annuities, Ailing 529 Funds (Ask SmartMoney)

QUESTION: With the economy doing so poorly, will mortgage rates come down? I have an excellent credit score and want to buy a home with the best interest rate.

—Janet Mills, Moon Township, Pa.

Typically, when the economy deteriorates, mortgage rates fall too. That’s because mortgage rates follow the long-term bond market, specifically Treasurys and mortgage-backed bonds. As investors flee to safe havens, yields fall, and mortgage rates fall with them.

But that hasn’t been the case this time around. “Investors are spooked by mortgage-backed securities. Investment dollars are going into government bonds instead,” says David Reed, president of CD Reed Mortgage Bankers in Austin, Texas. So while yields on Treasurys have fallen hard and fast, mortgage rates are hovering around 5.6 percent. Whether they fall further or shoot up depends more on whether the federal government increases its support or not.

Will they fall in 2009? Who knows. Focus instead on what you do know: Home prices are down, sellers are nervous, and mortgage rates aren’t bad. “It’s like having an ace in your hand but hoping to pick up a king or a queen,” says Barbara Corcoran, founder of the Corcoran Group. In other words, if you find the right house, can negotiate a good price and plan to stay put for several years, it’s probably better to pull the trigger than hope for a better financing deal.

QUESTION: I’d like to transfer my variable annuity to a better family. Any recommendations?

—Bennett Greenfield, Dallas

One of the biggest drawbacks of variable annuities is the layers of fees, which gnaw at returns. So when doing a tax-free rollover of a variable annuity (or, if you work for the Internal Revenue Service, “a 1035 transfer”), look to the no-load fund families, like Vanguard, T. Rowe Price and Fidelity. While the average variable annuity has an expense ratio of 2.4 percent, according to Morningstar (including the cost of the underlying investments and the insurance wrapper that gives the annuity its tax-deferred status), these low-cost providers charge significantly less. Vanguard, for example, offers 15 variable annuity portfolios with expense ratios between 0.4 and 0.8 percent and no commission fee.

Watch out for a surrender charge, yet another fee that many annuity providers levy should you roll over the account, usually within the first six or seven years. Even so, paying the penalty could make sense over the long run, says financial planner Benjamin Tobias, of Fort Lauderdale, Fla.

QUESTION: I have a sophomore and junior in high school. The balance in our 529 plan has dropped 25 percent. Would I be better off putting the money in cash?

—Kathy Andrews-Smith, Richland, Wash.

With your first tuition bill less than two years away, a portion of your college fund should be in cash—and likely is, if you’re in a plan that shifts your allocation automatically every year. If not, moving everything now, when stocks may be at a low, locks in your losses. And at least some of this money has an investment horizon of roughly five years, long enough to bet on some recovery.

Infuriatingly, 529 college savings plans allow account holders to swap investments only once a year, although you can get around this rule by changing account beneficiaries or doing a tax-free rollover to another 529 plan, says Joseph Hurley, founder of Savingforcollege.com. So reallocate what you’ll need in the next three years; the remaining balance will likely recover by the time your high school sophomore becomes a college sophomore. e

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 13 Jan 2009 | 5:00 am

5 Ways to Cut Drug Costs (Deal of the Day)

The cost to fill prescriptions can quickly turn into a financial burden, especially when budgets are tight.

Some pinched patients are even going so far as ditching the drug component of their doctors' orders just to save some cash. An October survey by the Kaiser Family Foundation, a nonprofit health policy group, found that 27% of people decided not to fill a prescription in order to save money, up from 23% six months earlier. About 22% reported cutting pills or skipping doses, up from 19%.

These are indeed ominous signs as the economy continues to spiral down. But as with mortgage payments and credit-card debt, there are things consumers can do to save on drugs while maintaining their health.

Here are five strategies to help you cut back on your drug costs.

Take advantage of store promotions

Since 2006, retailer Meijer has offered commonly-prescribed generic antibiotics at no charge. Now several other large supermarket chains are following suit with their own antibiotic giveaways. Last week, Wegmans announced that between now and the end of March it would give a 14-day supply of any of nine generic antibiotics for free to customers with a Shoppers Club card. Giant Food and Stop & Shop are also offering up to a two week supply of free common generic antibiotics between now and March 21.

CVS (CVS) is offering another way to save. A couple of months ago, it launched the Health Savings Pass Program, which aims to help uninsured and underinsured consumers manage health-care costs. Customers pay an annual $10 enrollment fee and can buy a 90-day supply of more than 400 generic prescriptions for $10. They also get a 10% discount on services and screenings at the retailer’s in-store MinuteClinic.

Go for generics

Ask your doctor if there’s a generic equivalent for your prescription, says Carolyn McClanahan, a former practicing physician and founder of Life Planning Partners, a financial planning firm in Jacksonville, Fla. In most cases, the active ingredients in brand-name and generic drugs are the same; it's the inactive ingredients that sometimes differ, says McClanahan.

Bear in mind that not all medications have a generic equivalent. If that's the case, ask your doctor if there’s a generic available for a comparable drug, says Albert Wertheimer, professor of pharmacy administration at Temple University. Say you’re prescribed the cholesterol-lowering drug Lipitor. It has no generic version, but competing drug Zocor does. “In almost no cases do you do any harm by switching to the first cousin of a medication,” says Wertheimer.

Buy in bulk

If you’re on medication for a chronic condition, ask for a 90-day supply rather than a traditional monthly refill. “It’s a better deal,” says McClanahan. Just make sure your insurance plan covers prescriptions for that length of time.

Pharmacy programs at major retailers and supermarkets, including Wal-Mart (WMT), Target (TGT) and Stop & Shop, offer hundreds of generic prescriptions at a significant discount, especially when you order a longer-term supply. A 30-day supply typically will cost around $4 while a 90-day supply will cost just $10. Also look into mail-order pharmacies. Many insurers offer lower rates on prescriptions if you order several months' supply through the mail. You can often get a three-month supply by mail for what you'd pay for a two-month supply at the drugstore.

Shop around

Compare drug prices at various pharmacies to see which one sells your prescriptions at the best price. Also, don’t be shy about asking for a price match at the pharmacy counter. Many pharmacies will match others’ prices, but they won’t advertise that to customers, says Ted Epperly, a family physician in Boise, Idaho, and president of the American Academy of Family Physicians.

One word of caution: If you get different prescriptions filled at different pharmacies, make sure to tell the pharmacist about all of your medications so they can identify any possible adverse reactions.

Split pills

Pill splitting is another strategy that can help patients save without sacrificing drug effectiveness or safety. Some pills are available at twice the dose and at the same price as lower doses. Check the drug maker’s web site to find out the various strengths your medication comes in, says Wertheimer. If you need 10 mg a day, ask your doctor to prescribe 20 mg then split the pill in half. Note that some drugs should not be split, including time-release pills and capsules. Consult your doctor to find out if pill-splitting is possible with your particular medication.

Another option: Ask your doctor if you can take your medicine every other day instead of everyday or once a day instead of three times a day, says Epperly. “There are times when that’s pharmacologically OK, especially if patients are trying to stretch their budget,” he says.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 13 Jan 2009 | 5:00 am

4 Stocks That Thrive in a Bad Economy (Screens)

Absent my favorite brew, I’ll drink Samuel Adams gladly, Coors under protest and Molson only if things have gone horribly wrong.

In September though, I predicted Molson Coors Brewing (TAP) would prove a better stock than Sam’s brewer, Boston Beer (SAM). Two reasons: Severe hops inflation had made Boston’s amber waves far less profitable than Molson Coors’ pale yellow ones. And Molson Coors was by far the cheaper stock, at 16 times earnings, vs. 24.

Indeed, Molson Coors stock has fallen an enviable 11% since then. The broad American stock market is down 30% and Boston Beer has lost 38%. The valuation gap has narrowed but not closed. Molson Coors now carries a 2008 price/earnings ratio of 16 and Boston Beer 15. (That’s based on three quarters of reported earnings and estimates for the fourth quarter.)

It’s tempting to switch my preference -- for the shares, not the beers. Hops prices have eased a touch, after all, with a larger harvest expected this year. But I have a new reason for picking Coors. According to my beer price survey, conducted solely at a grocer across the street from SmartMoney’s Manhattan office (it’s cold out), Coors costs 33% less. Cheap is suddenly fashionable. I wonder if a decade-long shift in U.S. alcohol consumption away from big-label domestic beer in favor of pricier craft beer, wine and liquor isn’t due to reverse. Molson Coors is expected to increase profits this year. Boston Beer isn't.

Below I’ve listed Molson Coors and a few other companies that seem likely to thrive in a recession. All pay dividends, have reasonably priced shares and carry modest debt, or none at all.

Genuine Parts (GPC) relies on cars for half its business and plants and offices for the rest. U.S. car sales have hit their worst level in 15 years, but fewer new cars means more repairs on old ones. Genuine Parts, Advance Auto Parts (AAP) and AutoZone (AZO) are all expected to increase profits this year. Genuine has the cheapest shares and biggest dividend yield (4.1%), and has negligible debt. Also, three-quarters of its car-part sales come from mechanics, not stores. That means it’s less exposed to slowing retail traffic for nonessential car trinkets.

Profits for Cal-Maine (CALM), the nation’s largest egg producer, are expected to fall during its fiscal year ending May 31. But sales are still growing, and growth is expected to resume later in the year. I recommended the stock last April, based largely on its modest valuation. The broad market has lost 37% since then, but Cal-Maine is down just 11%. With a drop-off in restaurant visits seemingly priced into earnings forecasts, shares go for just six times this fiscal year estimate. Cal-Maine is only modestly indebted, and pays a variable dividend equal to one-third of profits. Right now that works out to just over 5%.

Finally, I recommended Pfizer (PFE) in the middle of October. It’s up 1%, vs. a 13% decline in the broad market. It still has a $10 billion cash surplus, a single-digit P/E and a dividend yield of 7.3%. And drugs, like alcohol, are a good bet in a recession. Pfizer’s sales and profits are expected to increase this year.