Dollar up versus euro and pound

The euro falls against the dollar on weak economic news in Europe, while the pound dropped amid worries about UK banks.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 2:35 pm

Czech Cabinet plans to sell national carrier CSA

The Czech government says it will sell CSA airline in a two-round public tender this year. The government says it approved conditions for the bidding on Monday and hopes the sale will be
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:33 pm

UK throws banks a lifeline as RBS posts record loss

LONDON/MADRID (Reuters) - Britain launched a second bank rescue plan on Monday and Royal Bank of Scotland recorded the biggest loss in UK corporate history, while a cut in Spain's credit rating caused fresh market wobbles.
Source: Reuters: Business News | 19 Jan 2009 | 2:31 pm

UK throws banks a lifeline as RBS posts record loss (Reuters)

Reuters - Britain launched a second bank rescue plan on Monday and Royal Bank of Scotland recorded the biggest loss in UK corporate history, while a cut in Spain's credit rating caused fresh market wobbles.

Source: Yahoo! News: Business | 19 Jan 2009 | 2:31 pm

Russia gas deal set to be signed

The Ukrainian and Russian prime ministers are expected to sign a deal, enabling gas to be flowed into Europe again.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 2:26 pm

Rubicon Intersects New Broad Gold Zone 220 Metres Southwest of F2 Gold Zone

- mineralized envelope expanded to 580 metres laterally by 1101 metres vertically - VANCOUVER, Jan. 19 /PRNewswire-FirstCall/ - Rubicon Minerals...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:26 pm

E.U. slashes euro-zone, U.K. growth forecasts

The European Union on Monday predicts a deep slump for the 16-nation euro zone, forecasting a 1.9% contraction in gross domestic product across the 16-nation region in 2009 -- the first full-year contraction since the single currency was introduced a decade ago.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 2:22 pm

Denmark's FLSmidth trims 600 jobs

Denmark-based engineering company FLSmidth said Monday it is reducing its work force by 6 percent, or 600 employees, because of the global economic downturn. The group cited "a...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:16 pm

Top Aussie Winemakers Pour Into UK

LONDON, January 19 /PRNewswire/ -- Australia Day 2009 will be celebrated in style in the UK next week with leading winemakers flying in for the occasion, which will...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:16 pm

To Unfreeze Credit, Stop Coddling the Debtors

John Tamny, RealClearMarkets

Last fall, in an Oct. 16 interview with CNBC's Larry Kudlow, outgoing U.S. Treasury Secretary Henry Paulson addressed the imposition of the Troubled Asset Relief Program on banks, and specifically responded to Kudlow's query about the level of control the federal government would exercise over the recipient firms. Paulson dismissed the very idea of heavy government oversight, arguing instead that "these are passive investments."

Even at the time, it was clear that Paulson was protesting too much. Going back to last spring when Paulson asked mortgage lenders to voluntarily reduce payments for troubled debtors, the very notion of "voluntary" reductions was laughable. Given the massive subsidization of the lending and housing sectors by the federal government (think mortgage interest deductions, Fannie Mae and Freddie Mac, plus zero capital gains treatment on home sales), any "suggestion" about how lenders should conduct their business affairs from our federal minders is surely an order.

Read more...

Source: 24/7 Wall St. | 19 Jan 2009 | 2:15 pm

RBS shares dive 70% on mounting debt fears

Comment: latest bailout for our own good | Analysis: what this means for borrowers | Brown 'angry' as bailout announced |
Source: Latest Business News from Times Online | 19 Jan 2009 | 2:15 pm

Obama's top priority: the economy

Senior aides to President-elect Barack Obama say he will convene a meeting of his top economic advisers on Wednesday, his first full day in office, as the incoming president immediately tries to put the financial crisis at the center of his agenda.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 2:14 pm

RBS shares plunge on record loss

Royal Bank of Scotland shares plunge 63% as the bank says it is heading for a record UK loss of up to £8bn.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 2:12 pm

European markets down as banking stocks plummet (AP)

AP - European stock markets declined Monday with banks in free fall as investors fretted over a second British government bailout of the sector in just over three months. Royal Bank of Scotland shares fell 60 percent after it announced massive losses.

Source: Yahoo! News: Stock Markets News | 19 Jan 2009 | 2:12 pm

European markets down as banking stocks plummet

European stock markets declined Monday with banks in free fall as investors fretted over a second British government bailout of the sector in just over three months. Royal Bank of Scotland...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:12 pm

Oil-rich Abu Dhabi outlines green energy target

The head of a green-energy project in Abu Dhabi says the oil-rich emirate plans to generate 7 percent of its energy needs from renewable sources by 2020. Sultan al-Jaber says the...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:11 pm

Brown accuses RBS of taking 'irresponsible risks'

Gordon Brown unveiled a second bank rescue package including powers for the Bank of England to lend up to £50bn directly to businesses, as he expressed his "anger" with the "irresponsible mistakes" of the Royal Bank of Scotland
Source: Financial Times - US homepage | 19 Jan 2009 | 2:08 pm

New measures to help UK banks

The government unveils an insurance scheme for banks as it tries to get them lending again, but banking stocks fall heavily.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 2:02 pm

NewsWatch: Obama should encourage spending in speech

When it comes to the economy, Barack Obama should use his inaugural address to set the stage for some bold initiatives. To be successful, he must walk the line between not mincing words on how bad the economy is, and being so pessimistic that he talks the financial markets into another swoon.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 2:00 pm

Bank of Commerce Increases Business Lending Efforts

Community Bank Receives $3 Million From Capital Purchase Program CHARLOTTE, N.C., Jan. 19 /PRNewswire-FirstCall/ -- Bank of Commerce (OTC Bulletin Board: BONC.OB) is...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:00 pm

Goodrich CEO to Address the Cowen and Company 30th Annual Aerospace/Defense Conference

Address to be webcast on Goodrich website CHARLOTTE, N.C., Jan. 19, 2009 /PRNewswire-FirstCall/ -- Marshall Larsen, Chairman, President and Chief Executive Officer of
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:00 pm

Congress Introduces Bill That Would Reinstate Downpayment Assistance: Nehemiah Responds

- Bill Would Broaden Opportunities for Sustainable Homeownership Without Government or Taxpayer Dollars - SACRAMENTO, Calif., Jan. 19 /PRNewswire/ -- The following
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 2:00 pm

Oil falls towards $35 on gas deal and Gaza ceasefire

LONDON (Reuters) - Oil fell more than $1 toward $35 a barrel on Monday on signs of a resolution of a gas row between Russia and Ukraine and after a ceasefire between Israel and Hamas in Gaza eased supply concerns.
Source: Reuters: Business News | 19 Jan 2009 | 1:57 pm

Japan's Nikkei slightly up on yen, Obama (AP)

AP - Japan's key stock index rose slightly Monday as investors welcomed a dip in the yen, lifting electronics companies, automakers and other exporters
Source: Yahoo! News: Stock Markets News | 19 Jan 2009 | 1:53 pm

Europe Markets: European shares drop as banks weigh; RBS shares fall 48%

European shares move higher, with banks advancing after the U.K. government announces a new package of measures to support the country’s financial system and Barclays reassured on profit trends.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 1:52 pm

Congress pushes for credit card relief

With last week's re-introduction in Congress of a bill to reign in what critics say are abusive credit-card practices, the stage is set for a Washington battle that will determine whether entrepreneurs and other credit-card users get relief soon from soaring rates and fees.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 1:46 pm

RBS shares plunge as losses mount

News of the biggest loss in British corporate history from Royal Bank of Scotland prompted a dizzying slide in its share price on Monday, taking the shine off the government's latest plan to rescue the...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 1:43 pm

U.K. unveils second bank rescue plan

The U.K. government announced a second bank rescue plan Monday designed to jumpstart lending and bolster the stability of the nation's financial system.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 1:42 pm

U.S. client cancels contract with fraud-hit Satyam

BANGALORE (Reuters) - Fraud-hit Satyam Computer Services Ltd said on Monday a U.S.-based client had canceled its contract, dealing a blow to the embattled Indian outsourcer caught in the country's biggest corporate scandal.
Source: Reuters: Business News | 19 Jan 2009 | 1:38 pm

Irish bank shares dive amid Anglo nationalization

Shares in Ireland's three remaining publicly listed banks nose-dived Monday as the government pressed ahead with emergency plans to nationalize debt-saddled Anglo Irish Bank Corp. ...
Source: RSS feed - channel BNewsBusiness | 19 Jan 2009 | 1:37 pm

Credit eases slightly on U.K. rescue

Borrowing was slightly less expensive Monday after Britain unveiled a new bank rescue plan aimed at increasing the availability of credit and boosting bank lending.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 1:30 pm

Crucial cover

Why the bank insurance plans are vital for lending
Source: BBC News | Business | World Edition | 19 Jan 2009 | 1:27 pm

Euro stocks higher on bank bailout

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 1:26 pm

Britain expands bank bailout

The British government moves to expand its plan to rescue the nation’s troubled financial sector in an effort to boost lending, pledging billions of pounds to guarantee bank debt and provide insurance against further rounds of steep losses.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 1:26 pm

Opening Bell: 01.19.09

Programming Note: We're off 'til tomorrow. Enjoy the holiday, and see you Tuesday morning! Also, solicitation: if anyone is free on Friday and interested in covering Wharton's annual Private Equity & Venture Capital conference (which was taken over by protesters last year), get in touch!

Citi Passes Torch To RBS (Bloomberg)
RBS is looking at a loss of as much $41B on top of which they could write down as much as £20B in past acquisitions, which makes them king of the mountain. There's a certain amount of respect owed to those that can dethrone the once mighty Citi from atop a vast heap of brutal carnage; the idea that Pandit might be Jr. to some more nefarious individual is almost, well, shocking. I'm sure the Citi boys will be quick to point out that the RBS'ers have a long history of wearing skirts, such that it's not entirely surprising that they found themselves bent over the copying machine - but I warn thee, Citi, don't make that mistake: it could very well be your last.

UBS Buys AIG Commodities Index (DJNewswire)
UBS has acted with all the grace of a bi-polar prostitute in days of recent past; this move doesn't exactly clarify their positioning in the market. The pick-up is going down for $15MM on the front end with $135MM negotiated over the next 18 months depending on performance. You'll remember AIG wanted the government (who currently has a kung-fu deathgrip on the firm's balls) to allow them to accept stock in lieu of cash while unwinding - the UBS rent-to-own plan appears to be a reasonable alternative.

Blackstone To Launch S. Korean Unit (Reuters)
The unit will launch with $6MM with the intent of targeting around $2B in acquisitions over the coming years. This move almost appears to be government sponsored: it wouldn't be out of line for the small(ish) government to have called in PE firms to do a bailout of a mid/small's that are suffering from liquidity issues.

Russia/Ukraine Saga To Come To A Temporary Close (WSJ)
The phenomenon that is the former Soviet Bloc isn't ever to be underestimated: their capacity for instability is unheard of in Western circles. The Ukrainian government has effectively (and without apology) held Russian gas from Europe as part of their annual price negation process, which is apparently coming to an end:

"Russian Prime Minister Vladimir Putin said Ukraine will pay 20% less than the European price for this year. This means a substantial increase for Ukraine in the first quarter but the price could fall significantly later in the year as gas prices are expected to drop.

Ukraine's Prime Minister Yulia Tymoshenko said natural gas supplies would resume once the two countries' gas companies sign a contract. It wasn't clear how soon this would happen. Russia's Gazprom and Ukraine's Naftogaz, both state controlled, were told to prepare the documents."

Source: Dealbreaker | 19 Jan 2009 | 1:16 pm

Obama merchandise: Bright spot for stores

Retail sales have contracted as consumers slow their spending, but gear linked to President-elect Barack Obama is generating sales for many retailers and designers.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 1:14 pm

Mortgage Rates Fall to Record Lows (BusinessWeek Online)

BusinessWeek Online - Mortgage giant Freddie Mac said on Jan. 15 that rates on 30-year fixed-rate mortgages fell below 5% this week -- the lowest level since it began surveying lenders in 1971.
Source: Yahoo! News: Business | 19 Jan 2009 | 1:08 pm

Futures Movers: Crude-oil futures dip after Israel ceasefire, Ukraine gas deal

Crude-oil futures edged lower Monday as a cease-fire in the Gaza Strip and a pact between Russia and Ukraine over natural-gas exports helped ease worries about energy supplies.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 1:01 pm

London Markets: Royal Bank of Scotland shares slammed in London; FTSE 100

London’s top index moves higher after the government outlines plans to support the financial sector, with Barclays shares surging more than 16% after it said profit would most likely exceed most analyst forecasts.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 1:01 pm

Currencies: Bank bailout pressures British pound

LONDON (MarketWatch) -- The British pound slipped Monday, knocked down in the wake of the U.K. government's unveiling of billions in additional pledges to back debts and guarantee banks against future pledges.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 12:53 pm

S&P cuts Spain's credit rating

MADRID (MarketWatch) - Spain's sovereign credit rating was cut to AA+ from AAA Monday by Standard & Poor's Ratings Service.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 12:49 pm

Networking sites help Obama

The Web helped elect Barack Obama as president of the United States. Now many of the social media sites that spread his message of change during the campaign are heading to Washington, only this time they are focused on community service and conversations about social policy.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 12:47 pm

Stocks to Watch: Citi, ConocoPhillips, CSX, IBM, J&J, New York Times

Among the companies whose shares are expected to see active trade in Tuesday's session are Citi, ConocoPhillips, CSX, IBM, J&J and New York Times. Wall Street is closed on Monday for Martin Luther King Jr. Day.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 12:47 pm

Intel: Wake me when it's July

Intel did what it said it would do: post a miserable fourth quarter. But with the chip industry in a major slump, that kind of candor doesn't extend to the first part of this year.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 12:46 pm

RBS shares slammed after bank warns of huge loss

Royal Bank of Scotland shares tumble more than 20% after the bank said it could report a massive loss of up to 28 billion pounds ($41.6 billion) for the year and also restructured its recent rescue package, giving the government an even bigger stake.

Source: MarketWatch.com - Top Stories | 19 Jan 2009 | 12:46 pm

Oil heads toward $35 a barrel

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 12:39 pm

FTSE-100 index up 46.98 points at 4,194.04 (AP)

AP - Share prices on the London Stock Exchange were higher at midday Monday.
Source: Yahoo! News: Stock Markets News | 19 Jan 2009 | 12:34 pm

Work suspended at Jaguar factory

Jaguar Land Rover says it is halting work at its car plant in Castle Bromwich, Birmingham, for two weeks.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 12:34 pm

Citi says still committed to Japanese brokerage

TOKYO (Reuters) - Citigroup said on Monday it is still committed to its Japanese brokerage and asset management units, denying media reports that the U.S. bank is actively looking to unload a major part of its Japanese business.
Source: Reuters: Business News | 19 Jan 2009 | 12:13 pm

Citi says still committed to Japanese brokerage (Reuters)

Reuters - Citigroup said on Monday it is still committed to its Japanese brokerage and asset management units, denying media reports that the U.S. bank is actively looking to unload a major part of its Japanese business.

Source: Yahoo! News: Business | 19 Jan 2009 | 12:13 pm

KeyCorp shares could rise sharply: report

NEW YORK (Reuters) - KeyCorp could see its shares double, or even triple, when the economy revives, if the bank could keep on working out problem loans, according to a report in the January 19 edition of Barron's.
Source: Reuters: Business News | 19 Jan 2009 | 12:12 pm

Dividends: The most income at the least risk

Dividend investing used to be really simple. Whether you were retired and needed the quarterly cash payments your stocks threw off for current income or you were a conservative investor simply looking to reinvest those dividends to generate a bit more growth, you bought these Steady Eddies with the intention of holding them for years - if not for the rest of your life.
Source: Business and financial news - CNNMoney.com | 19 Jan 2009 | 12:00 pm

Hong Kong stock market rises on US stimulus hopes (AP)

AP - Hong Kong shares climbed Monday amid hopes a massive stimulus plan will boost the U.S. economy, but expectations of dour fourth quarter earnings capped gains.
Source: Yahoo! News: Stock Markets News | 19 Jan 2009 | 11:57 am

Oil slide leads commodity markets lower

Oil prices fell while base metals were mixed and gold traded in a narrow range as commodity markets made a stumbling start to trading on Monday amid ongoing turmoil in financial markets after the UK and...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 11:54 am

HSBC snubs Government bank rescue scheme

HSBC has turned down the chance to tap the Government's offer of emergency funding as several high street banks begin to strike a more defiant note about the state of their finances.
Source: Latest Business News from Times Online | 19 Jan 2009 | 11:49 am

European stocks rally on British bank bailout (AFP)

AFP - European stock markets rallied on Monday as Britain unveiled a scheme to kick-start lending by ailing British banks that it hopes can be spread across the globe.

Source: Yahoo! News: Stock Markets News | 19 Jan 2009 | 11:46 am

The Next Threat To The Financial System: Corporate Defaults (NYT)(CHTR)(LVLT)(SIRI)

The next big threat to bank earnings may be corporate defaults on debt, much if it originally supplied by the banks themselves. The irony is that the problem could be solved by the banks, if they won't open their vaults and provide more capital to companies who are in the process of refinancing.

But, they won't. At least not without being forced to do so by the government. Banks don't want to put their earnings in greater trouble by offering more risky loans on top of the ones they already have issued. As the recession deepens, they have no reasonable way to evaluate whether they will be paid back.

For debt which is rated junk, the reluctance of the banks is understandable, but the issue reaches far beyond firms with highly risky credit profiles., The New York Times reports that "This year alone, more than $700 billion in corporate loans will come due, according to Standard & Poor’s. "

A number of large American companies are left without access to capital by the trend. These include The New York Times (NYT) itself, which has $400 million in debt due at the middle of this year. Other corporations from Sirius (SIRI) to cable giant Charter (CHTR) to large telecom firm Level 3 (LVLT) may be forced into Chapter 11 or liquidation because they cannot tap funds that would have been readily available two years ago.

When companies are able to borrow, they are paying interest rates of 10% or higher. Servicing that debt requires a large part of operating income which means that the money borrowed may solve short-term problems but it robs money from operations as time passes. High debt service costs become a boat anchor in and of themselves.

The trend makes it more likely that the US will have to do what the UK has announced that it will do. The Treasury may have to step directly into the corporate debt market and sponge up paper from private enterprises to take the credit obligations of American corporations out of the hands of financial institutions. It is a hell of a way to fix the credit crisis, and its eventual consequence is that the federal government does not just end up owning big pieces of banks. It ends up owning pieces of companies across a wide spectrum of industries.

In the final analysis, the government becomes the source of capital for the engines of private enterprise.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Jan 2009 | 11:43 am

RBS shares slide to 23-year low on record loss

LONDON (Reuters) - Royal Bank of Scotland unveiled the biggest loss in British corporate history on Monday, overshadowing a second government bailout for the sector and sending its shares reeling to a 23-year low.
Source: Reuters: Business News | 19 Jan 2009 | 11:38 am

Eurozone economy 'to shrink 1.9%'

The eurozone economy will shrink 1.9% in 2009 and grow by only 0.4% in 2010, the European Commission forecasts.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 11:34 am

First strike hits new Alitalia

Italy's troubled airline Alitalia is facing its first official strike, less than a week after its relaunch as a privately-owned company.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 11:26 am

Gaza City residents begin to rebuild lives

Amid piles of rubble and the stench of three weeks' worth of rubbish, the residents of Gaza City tried to put their lives back together on the first day of a joint truce between Israel and Hamas dawned
Source: Financial Times - US homepage | 19 Jan 2009 | 11:26 am

Can money alone save The New York Times (NYT)?

Source: 24/7 Wall St. | 19 Jan 2009 | 11:17 am

The UK Moves To Bailout Everything

Faced with a $42 billion loss at RBS (RBS) and credit markets which appear to become more frozen as each day passes, the UK will move its economic rescue package beyond the banks into the system of private debt.

With corporations cut off from the oxygen of lending, they are slowing dying because they cannot improve their balance sheets in what would be the normal course of business.

At the front end of the process, the UK has essentially begun that nationalization of some banks. It will end up with a 70% share in RBS. The stunning part of the program is, according to Bloomberg, that the government will require aid recipients to sign “specific and quantified” agreements to lend, reflecting Brown’s frustration at the failure of an October rescue to unlock credit markets.

If banks want money, most of it will have to be loaned into the financial system. The Bank of England will further buttress the credit system by buying corporate loans and commercial paper.

It would not be at all unusual for a similar system to spread to the US as the $350 billion left in the TARP becomes available to the new Treasury Secretary.

Most economists believe that the Achilles Heel of the current US bank rescue plan is that it gets money into banks, but the capital does not come out the other end in the form of loans to businesses and individuals. Businesses cannot conduct their affairs in the normal course. The average citizen cannot get a home loan or expand his access to credit, even through it is his taxes present and future, which are the source of the bank bailout capital.

The UK has taken the step of essentially bypassing the banks to mainline money into the system. It is quick, and quickness is what is called for as the recession bites harder each day.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Jan 2009 | 11:15 am

Sterling retreats on fears of quantitative easing

Sterling retreated against the yen, the euro and the dollar on Monday morning, as the UK government announced a raft of further measures to support the troubled banking sector. The government's latest...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 11:14 am

French carmakers to get state aid

The French government could take a bigger stake in its carmakers in return for financial aid, says Industry Minister Luc Chatel.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 10:52 am

Despite crisis, Jim Rogers is still a China bull

HONG KONG (Reuters) - The global financial crisis has only strengthened reknowned international investor Jim Rogers' acerbic criticisms about the U.S. economy and his resoundingly optimistic view on China's future.
Source: Reuters: Business News | 19 Jan 2009 | 10:42 am

Despite crisis, Jim Rogers is still a China bull (Reuters)

Reuters - The global financial crisis has only strengthened reknowned international investor Jim Rogers' acerbic criticisms about the U.S. economy and his resoundingly optimistic view on China's future.

Source: Yahoo! News: Business | 19 Jan 2009 | 10:42 am

New Northern Rock lending policy

Nationalised lender Northern Rock has been given longer to pay back its £26bn government loan in a bid to boost lending.
Source: BBC News | Business | World Edition | 19 Jan 2009 | 10:24 am

Denmark reveals bank bailout worth $18B in loans (AP)

AP - Danish lawmakers have agreed on a 100 billion kroner ($18 billion) rescue package of loans for banks and mortgage lenders to prevent the credit crunch from deepening.
Source: Yahoo! News: Business | 19 Jan 2009 | 10:22 am

Media Digest 1/19/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, there is at least some chance that the US could have to nationalize some banks.

Reuters reports that the UK launched a huge new bank rescue plan.

Reuters writes that Citigroup (C) plans to sell much of its financial interest in Japan.

Reuters reports that the head of the IMF fears more countries will need funds.

Reuters reports that Citigroup says it is still committed to its brokerage operations in Japan.

Reuters reports that RBS (RBS) will have a 30 billion loss on write-offs of its purchase of ABN

Reuters reports that The New York Times (NYT) may get money from Carlos Slim.

Reuters reports that the financial crisis could lead to US protectionism.

The New York Times reports that the cost of corporate buying has spiked especially for companies with debt due.

The New York Times reports that music publishers are beginning to offer unlimited access to
free songs.

The New York Times reports that the newspaper crisis is causing rapid turnover in management.

The FT reports that Obama will encourage banks to lend more.

The FT reports that investors are pulling out of big private equity funds.

Bloomberg reports the Obama will use TARP funds to widen access to credit.

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Jan 2009 | 10:14 am

Korean president reshuffles cabinet

South Korea's President Lee Myung-bak replaced leading members of his cabinet, including the finance minister, seeking fresh policies to deal with a precipitous economic downturn and an increasingly truculent North Korea
Source: Financial Times - US homepage | 19 Jan 2009 | 10:05 am

Asian shares make cautious gains

Asia-Pacific markets edged higher on Monday as region-wide commodity-related firms made gains and reports of support for the power sector aided Chinese stocks.Bar Shanghai's 1.7 per cent gain to 1,986...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 9:55 am

Asia Markets And Europe Open 1/19/2009

Markets in Asia were slightly higher

The Nikkei rose .3% to 8,257.

The Hang Seng was up .6% to 13.340.

The Shanghai Composite was higher by 1.7% to 1.987.

On news of a huge stimulus package for the UK, at the open the FTSE was up 1.8% to 4,,220. The Dax was higher by 1.4% to 4,426 and the CAC 40 was up 1.6% to 3,065.

Data from Reuters and MarketWatch

Douglas A. McIntyre

Source: 24/7 Wall St. | 19 Jan 2009 | 9:52 am

France says could take stake in carmakers: report (Reuters)

Reuters - France could offer financial assistance to the battered auto industry in exchange for stakes in carmakers, French industry minister Luc Chatel said, ahead of a meeting Tuesday at which aid measures should be announced.

Source: Yahoo! News: Business | 19 Jan 2009 | 9:46 am

France says could take stake in carmakers: report

PARIS (Reuters) - France could offer financial assistance to the battered auto industry in exchange for stakes in carmakers, French industry minister Luc Chatel said, ahead of a meeting Tuesday at which aid measures should be announced.
Source: Reuters: Business News | 19 Jan 2009 | 9:46 am

UK plan fails to lift Europe's banks

Europe's bourses nudged higher on Monday as news of the latest UK government intervention in the troubled banking sector was met with a tepid reaction from investors. Swiss bank UBS rose after announcing...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 9:43 am

UK bank rescue plan cheers world stocks (Reuters)

Reuters - World stocks rose on Monday while government bonds fell after Britain launched a multi-billion rescue plan for its troubled banks and the incoming U.S. administration planned more measures to help the economy.

Source: Yahoo! News: Business | 19 Jan 2009 | 9:08 am

UK bank rescue plan cheers world stocks

LONDON (Reuters) - World stocks rose on Monday while government bonds fell after Britain launched a multi-billion rescue plan for its troubled banks and the incoming U.S. administration planned more measures to help the economy.
Source: Reuters: Business News | 19 Jan 2009 | 9:08 am

Pearson upbeat on trading

The educational publisher and owner of the Financial Times released an upbeat trading update on Monday and said it expected annual earnings to rise by 20% this year, well ahead of analysts' expectations
Source: Financial Times - US homepage | 19 Jan 2009 | 8:10 am

'Paul Blart: Mall Cop' captures No. 1 at box office

Clint Eastwood's 'Gran Torino' slips to second place. "Paul Blart: Mall Cop" is a lightweight film about a hapless...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 8:00 am

Obama goods are making history

The amount of merchandise for sale that is related to the president-elect is unprecedented, historians say. Even...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 8:00 am

California emission waiver looms for carmakers

Barack Obama is expected to allow California and other states to enforce tough air quality rules soon after taking office. ...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 8:00 am

For small businesses, a taxing question

With revenue down, should owners do their own tax returns, or concentrate on bringing in more customers? The beginning...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 8:00 am

U.S. economy may sputter for years

Unemployment could be worse than now by the time President-elect Barack Obama's first term ends. Transfixed by...
Source: RSS feed - channel BNPaperBusiness | 19 Jan 2009 | 8:00 am

Japan in move to the left with 'tenderhearted capitalism'

Japan must break free of the heartlessness of Wall Street and create a new brand of “tenderhearted capitalism” to lessen the pain of the worst economic crisis since the Second World War, the economics minister told parliament today.
Source: Latest Business News from Times Online | 19 Jan 2009 | 7:56 am

Aussie stocks: Market climbs just over 1pc

PERTH - The Australian share market was driven higher by resources stocks on the back of firmer commodity prices. The benchmark S&P/ASX200 index was up 38.4 points, or 1.08 per cent, at 3,589.3, while the broader All Ordinaries...
Source: New Zealand Herald - Business | 19 Jan 2009 | 7:17 am

Pizza Hut to launch Pasta Hut in Sydney

SYDNEY - Pizza Hut plans to double sales and increase its market share over the next five years by testing a co-branding of its fastfood franchise as Pasta Hut and offering restaurant-quality pasta. Pizza Hut, said the move was...
Source: New Zealand Herald - Business | 19 Jan 2009 | 6:51 am

NZ stocks: Market slips after positive day

The New Zealand sharemarket was positive for most of the day, but ended slightly down after falling away from mid-afternoon. When the market closed the benchmark NZSX-50 index had slipped 4.19 points to 2747.98, having been up...
Source: New Zealand Herald - Business | 19 Jan 2009 | 6:37 am

Singapore may tap reserves amid recession

Singapore has signalled that it will adopt a carrot-and-stick approach in dealing with possible public unrest as the city-state enters would could be its worst post-war recession by increasing spending and tightening laws against political protests
Source: Financial Times - US homepage | 19 Jan 2009 | 6:36 am

Currency: Dollar continues recovery

The New Zealand dollar made small gains against major currencies today, continuing its mild recovery after last week's plunge. By 5pm the kiwi was buying US55.37c from US55c around 9.30am today and US54.70c at 5pm on Friday. The...
Source: New Zealand Herald - Business | 19 Jan 2009 | 6:07 am

Biotech In Decline

No high technology sector has been riskier for investors than biotechnology, which means that many of the hundreds of companies anxiously trolling for investors at J.P. Morgan's annual biotech conference in San Francisco last week faced a bleak future.

In an era when safe-as-houses investments like mortgages are felling banks left and right, investors are understandably reluctant to roll the dice on an industry like biotech, where it takes 10 to 15 years and as much as a billion dollars to produce a single drug, and new medicines in human testing fail about 87 percent of the time.

Even the industry's lobbying group, the Biotechnology Industry Organization, says that 45 percent of publicly traded biotech companies will run out of cash in the next 6 to 12 months. A mere 10 percent of the 370 listed companies have a positive cash flow.

For decades, investors have been willing to be patient, in hopes of striking it rich eventually. But investors' patience is running out. In 2007, 41 biotech I.P.O.'s raised $1.9 billion, in 2008 a single I.P.O. raised $5.8 million.

BIO President and CEO James Greenwood has asked the incoming Obama administration for a biotech stimulus plan, but gave the odds of such a bailout succeeding in Congress at only one in three.

Hope for government aid comes as investors here talk about a dramatic contraction in private funding from venture capitalists and others that see little prospect for pay-outs for small and many medium-sized companies.

"The biotech model over the last 25 or so years has been to assemble innovative science, raise two or three rounds of venture capital, advance your R&D program to a point at which you can go public, and then continually tap the public markets to meet your capital needs," said Richard Aldrich, co-founder of RA Capital Management, a Boston investment firm.

"But the backdrop for all of this was the greatest bull market in history," Aldrich added. "It was a very permissive financial environment, which is what early stage biotech needs. The bull market has ended, and the biotech model we all came to know and love, has ended with it."

Aldrich and others said they still see companies worth investing in, but not many.

"There will be a Darwinian winnowing," says Bryan Roberts, a partner in Venrock, a venture capital firm in Palo Alto, California. "The mediocre middle will certainly go away. There will still be winners, but far fewer."

Much of the activity at the J.P. Morgan conference involved companies and investors that still have money shopping for deals. "We are being visited by a number of companies," said Jay Flatley, CEO of the genomic sequencing company Illumina, based in San Diego.

Illumina recently announced an $18 million development deal with Oxford Nanopore of Britain for its next-generation genetic sequencing technology. Illumina has remained profitable with a healthier-than-average stock price even during the downturn.

It's a great time to be looking for acquisitions if you have the resources, Flatley said. "There is a sugar daddy aspect to it," he added, though he is finding only a few worthy prospects.

For many struggling biotech companies, however, the sugar may be running out out.Related Links
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J.P. Morgan Joins Fake Steve Jobs in the iPhone Spin Room



Source: Portfolio.com: Top 5 | 19 Jan 2009 | 5:00 am

4Q earnings could indicate economy's direction (AP)

AP - As hundreds of fourth-quarter earnings reports stream in this week, Wall Street's reaction will turn on companies' answers to one question: When will the recession end?

Source: Yahoo! News: Stock Markets News | 19 Jan 2009 | 2:37 am

Top businessman has leukaemia, steps down

One of New Zealand's top business leaders, Infratil's Lloyd Morrison, has leukaemia and is stepping down from his companies on medical leave. Infratil chairman David Newman dropped the bombshell in an announcement to the stock...
Source: New Zealand Herald - Business | 19 Jan 2009 | 1:30 am

Blackstone to launch S.Korea unit in January: paper

SEOUL (Reuters) - Private equity firm Blackstone Group will launch a unit in South Korea this month to buy companies and real estate assets for a combined $2 billion from cash-strapped domestic firms, a report said on Monday.
Source: Reuters: Business News | 19 Jan 2009 | 1:08 am

NZ investor confidence plummets: survey

Private, richer New Zealand investors recorded a 35 per cent drop in confidence during the last quarter of 2008, a new survey shows. Global financial services group ING said its quarterly investor sentiment dashboard survey put...
Source: New Zealand Herald - Business | 19 Jan 2009 | 1:00 am

Asia holiday sales test depth of economic woes (Reuters)

Reuters - Shopping is a national obsession in Singapore, yet this Lunar New Year retailers are struggling to get the city's usually insatiable shoppers to part with their cash as a cloud of economic gloom hangs over Asia.

Source: Yahoo! News: Business | 19 Jan 2009 | 12:41 am

Britain digs deep to keep bailing out its banks

LONDON -Britain is bailing out its banks. Again. Only three months after the government put £37 billion pounds (NZ$100 billion)into shoring up its shattered financial system, Britain is putting billions more into an insurance plan...
Source: New Zealand Herald - Business | 19 Jan 2009 | 12:30 am

US warns on North Korea nuclear intent

North Korea might have continued to engage in uranium enrichment activities in spite of its pledge to give up all nuclear weapons prog­rammes, according to the outgoing US national security adviser.
Source: Financial Times - US homepage | 19 Jan 2009 | 12:11 am

Pub industry in a froth over Government's costly policies

The brewing and pub industry will launch a scathing attack on the Government today, claiming that its “incomprehensible” policies are responsible for an acceleration in the rate of pub closures.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Investment broker Arthur Nadel missing after $350m goes missing from funds$

Police and the FBI are searching for an investment broker after complaints that up to $350 million ($£240 million) may have disappeared from funds that he managed.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Rightmove sees ray of hope for house prices

Relief from falling house prices could be around the corner, figures published today indicate.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Talk your text service to save thumbs from going numb

Teenagers may be addicted to texting and believe that it's what their thumbs are for, but people a little older can find that typing a message as short as “on train” takes as long as reaching their destination.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Little Chef gets expert help on perfecting its recipe for revival

It is the kind of combination that perhaps only the inventor of egg-and-bacon ice-cream could have thought of. One is a world-famous chef, the culinary wizard behind The Fat Duck, the Michelin-starred restaurant in Bray, Berkshire. The other serves breakfast on A roads.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Treasury man appears to pin blame for Northern Rock leak on advisers

The row over who leaked details of Northern Rock's emergency government bailout has been reignited by the compensation case being brought by the nationalised bank's former shareholders, The Times has learnt.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Don't overdose the sickly patient, Doctor Brown

There are no quick, miracle cures for a recession. These tough times are going to last at least another year. Reconciling ourselves to this reality, as anyone who runs a business knows, is the first step in taking defensive action and putting in place the right policies for a recovery.
Source: Latest Business News from Times Online | 19 Jan 2009 | 12:00 am

Retail stores close as job worries rein in spending

Insolvency experts expect more blood on the retail floor in the coming months as job security fears curb the consumer urge to splurge. The downturn in retail spending has already claimed the scalps of a number of retailers, with...
Source: New Zealand Herald - Business | 19 Jan 2009 | 12:00 am

CFTC sees rise in number of 'Ponzi' schemes

The $50bn fraud allegedly perpetrated by Bernard Madoff is prompting fraudsters to confess
Source: Financial Times - US homepage | 18 Jan 2009 | 11:34 pm

Investors turn their backs on mega-funds

Investors are turning hostile to "mega-buy-out" groups research is expected to show, with more than half of them planning on cutting investments in the biggest buy-out houses this year
Source: Financial Times - US homepage | 18 Jan 2009 | 11:34 pm

Signs of shift away from WTI

Oil traders are pricing some of their deals away from the West Texas Intermediate contract in a setback for the benchmark that has dominated physical and financial oil markets since the early 1980s
Source: Financial Times - US homepage | 18 Jan 2009 | 11:33 pm

Thomson Reuters to offer full 'data tape'

The news and market data vendor is set to launch an "independent consolidated tape" that pulls together prices across European exchanges and other trading facilities
Source: Financial Times - US homepage | 18 Jan 2009 | 11:33 pm

Tough times hit Dubai as investment firm cuts staff

A Dubai investment company says it is shedding 10 per cent of staff, making it at least the second government-owned employer to announce job cutbacks because of the economic downturn. Istithmar World said yesterday it was cutting...
Source: New Zealand Herald - Business | 18 Jan 2009 | 11:30 pm

Relating Unrelated News: American Attitudes And The UK Economy

Source: 24/7 Wall St. | 18 Jan 2009 | 10:34 pm

NZ Shares: Market edges higher in early trade

The New Zealand sharemarket edged up in early trading, led higher by Fletcher Building and The Warehouse. Around 10.15am the benchmark NZSX-50 index was up 3.1 points to 2755.26, following a 9.3-point gain on Friday. Fletcher...
Source: New Zealand Herald - Business | 18 Jan 2009 | 10:33 pm

Portfolio Diet is Compatible with Recession

A series of University of Toronto research studies have shown that sticking to something called the “portfolio diet” (no, it’s not a Vanguard thing) can lower cholesterol, potentially keeping people off cholesterol-lowering perscription drugs. It’s also very recession-friendly.

Is it a coincidence that a diet that keeps people off meat and perscription drugs also happens to coincide with tough financial times? Research-wise, it probably is. But if you look at the contents of the diet, you can see that its budget-friendliness is probably helping its PR efforts.

Marjorie Geiser of EMax Health covers the diet:

A study about a new diet plan known as the portfolio diet shows that various foods, such as nuts, soy protein, oat bran, and plant sterols all can have a cholesterol-lowering effect.

Studies have previously shown that various foods, such as nuts, soy protein, oat bran, and plant sterols all can have a cholesterol-lowering effect. But what if you combined all these foods together? (New) research shows that combining all these foods together is as effective as taking a statin drug. The results showed a 30.9% decrease in LDL cholesterol from the statin and a decrease of 28.2% from the portfolio combination of all these foods.

The concept is to add all of these foods, in a type of portfolio plan, like investments, to cover all possibilities for better heart health. This is not a weight loss diet, however, although the concepts for weight loss and lowered cholesterol could certainly be combined, with proper education and guidance by a qualified nutrition expert.

What is the Portfolio Diet?

Just follow these guidelines:

1. Substitute soy foods for meat. Drink soy milk instead of milk and substitute soy protein foods for other meats.

2. Eat as much ‘sticky’ fiber as possible. People in the study took three daily servings of natural psyllium supplements. Oats and barley replace other grains and preferred vegetables include eggplant and okra.

3. Include plant sterol-enriched margarines, such as benecol and Take Control. Plant sterols are also available in capsule form as dietary supplements.

4. A handful of nuts every day. In the study, almonds were eaten and the Almond Board of California offers portfolio diet recipes on its website (look at recipes on http://www.almondboard.com/), but any tree nut will reduce cholesterol.

Here are some examples of a typical day:

Breakfast – Include soy milk in your portfolio diet, oat bran cereal with chopped fruit and almonds, oatmeal bread with sterol-enriched margarine, and some jam.

Lunch – Soy lunchmeats, oat bran bread, bean soup, fruit.

Dinner – Stir fry with vegetables, tofu, fruit and almonds.

Snacks – Include nuts, yogurt, and soy milk thickened with a psyllium supplement such as Metamucil.

The portfolio diet is meager fare compared Atkins diet, where expensive steaks are a regular staple. And if it gets you off prescription drugs, it’s even better for your pocketbook. I doubt that the timing is deliberate, but it is interesting to see something like this being marketed during a serious economic crisis.

Look for the turnip soup diet if things get worse during the next year.

Source: Business Pundit | 18 Jan 2009 | 7:37 pm

Obama, earnings to call stocks' tune (Reuters)

Reuters - Wall Street will greet a new president this week with high hopes for a fresh start, but a deluge of corporate earnings reports pointing to a deepening recession could spoil the welcome party.

Source: Yahoo! News: Stock Markets News | 18 Jan 2009 | 3:40 pm