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Media Digest 1/22/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that China's GDP growth slowed. Reuters reports that exports from Japan dropped sharply. Reuters writes that Sony (SNE) warned of its biggest loss ever. Reuters reports that jobs losses are hitting men more than women. Reuters writes that Ebay (EBAY) offered a disappointing forecast. Reuters writes that Citigroup (C) named Richard Parsons as chairman. Reuters reports that small investors are walking away from brokers to do trading on their own. Reuters writes that Apple (AAPL) beat profit expectations. Reuters writes that Merrill Lynch paid bonuses early as the Bank of America (BAC) deal closed. The Wall Street Journal writes that IBM (IBM) employees are reporting jobs cuts. The Wall Street Journal reports that Intel (INTC) is closing plants, displacing workers. The Wall Street Journal reports that GM (GM) finished 2008 behind Toyota (TM) in total worldwide vehicle sales. The Wall Street Journal reports that fears of bank nationalization are growing in the UK. The Wall Street Journal reports that retailers are still expanding in China. The Wall Street Journal writes that the CEOs of Bank of America (BAC) and JP Morgan (JPM) bought shares. The Wall Street Journal writes that Moody's downgraded the debt of State Street (STT). The Wall Street Journal writes that AMR (AMR) and UAL (UAUA) posted big losses. The Wall Street Journal writes that the CBO says the stimulus bill may not help job growth soon. The Wall Street Journal reports that media companies are joining forces to test online video ads. The Wall Street Journal reports that some politician are trying to get TARP funds for their own states. The Wall Street Journal reports that investors are seeing bad signs for GE (GE) earnings. The Wall Street Journal reports that venture capital firms are closing some of their weak companies. The Wall Street Journal reports that nationalization of banks causes many problems. The Wall Street Journal reports that a close look at IBM's (IBM) earnings shows weaknesses. The Wall Street Journal reports that Disney (DIS) is offering buyouts to some theme park executives. The Wall Street Journal reports that India's Wipro is bracing for a tough year. The Wall Street Journal reports that Sony (SNE) will cut TV production. The New York Times reports that the UK economy may be weaker than the US or EU. The New York Times reports that slowing exports are causing job losses in Asia. The New York Times reports that the recession is making Microsoft (MSFT) and Google (GOOG) returned to their original businesses. The FT reports that AIG (AIG) is starting a $20 billion auction of its Asia unit. Bloomberg writes that Toyota (TM)) will cut management jobs. Bloomberg reports that one analysts believes banks will need another $1 trillion in rescue funds. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Jan 2009 | 9:03 am Europe Markets: Banks lead first Europe share advance of the weekBanks led an advance for European shares on Thursday, as the beaten-down sector regained some poise after this week’s sharp sell-off.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 8:59 am Big rally on Wall StreetStocks rallied Wednesday, recovering most of the previous session's losses, as investors welcomed IBM's earnings and scooped up bank shares hit hard in the recent retreat.Source: Business and financial news - CNNMoney.com | 22 Jan 2009 | 8:42 am Sony and LG stun investors with dire profit warningsTOKYO/SEOUL (Reuters) - Sony Corp and LG Electronics Inc stunned investors on Thursday, warning of big losses, underlining the deep pain in the consumer electronics market as demand crumbles in a brutal global downturn.Source: Reuters: Business News | 22 Jan 2009 | 8:36 am French official household spending slides 0.9 percent in DecemberFrench household spending on manufactured goods fell 0.9 percent in December from the November level and by 0.5 percent in the fourth quarter, the national statistics institute INSEE...Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:35 am Christmas sales up at MorrisonsSupermarket chain Morrisons says it enjoyed "excellect" Christmas trading, with like-for-like sales excluding fuel up 8.2%.Source: BBC News | Business | World Edition | 22 Jan 2009 | 8:32 am Asia Markets And Europe Open 1/22/2009
The Nikkei was up 1.9% to 8,052. The Hang Seng rose .9% to 12,700. The Shanghai Composite was up 1% to 2,005. At the open in Europe,the FTSE was up 1.7% to 4,128. The Dax rose 1.2% to 4,312. And the CAC 40 was up 1.4% to 2,946. Data from Reuters and MarketWatch. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Jan 2009 | 8:31 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 8:31 am British Gas to cut prices by 10% next monthThe average household will be able to save £84 a year on its energy bills after British Gas said that it would cut gas prices by 10 per cent from next month.Source: Latest Business News from Times Online | 22 Jan 2009 | 8:26 am Schafer leaving USDA with sense of accomplishmentOutgoing U.S. Agriculture Secretary Ed Schafer said he leaves Washington, D.C., with a sense of accomplishment and no regrets _ and no plans to run for another office. Schafer, who was...Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:25 am China's economy slows sharply, Japan exports sinkChina's economic slump worsened in the final quarter of 2008 as the impact of the global crisis spread, heightening fears of job losses and unrest, while Japanese exports fell at a record...Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:25 am A Guide To The Perplexed: Reading The America Recovery And Reinvestment Bill
The American Recovery and Reinvestment Bill of 2009 should be required reading for every citizen from billionaires to the average citizen.. It was issued by The Committee On Appropriations and is the road map for the $825 billion that the Congress and Administration intend to put into the US economy to jump-start the economy out of the recession. The most important part of the document may be the description of how the country was dragged into the worst economic period in its history. At the beginning of the Bill, the authors write: "Since 2001, as worker productivity went up, 96% of the income growth in this country went to the wealthiest 10% of society. While they were benefiting from record high worker productivity, the remaining 90% of Americans were struggling to sustain their standard of living. They sustained it by borrowing… and borrowing… and borrowing, and when they couldn’t borrow anymore, the bottom fell out." If that analysis is true, then two other things must be accurate. The first is that the cause of the recession is due to Americans becoming overextended in their use of credit. The other one, which is a consequence of the first is that, if the government can facilitate future consumer borrowing, the economy will be righted again in short order. That would mean that more complex methods of solving the problems of the recession, like spending money on infrastructure, would be unnecessary. It would be simpler to take $825 billion and make it available for home equity loans, enlarge credit card lines, and auto loans. But, the authors of the Bill are not willing to follow their own logic, so they have crafted another plan.The first assumption of what the program will do, and among the most important of its goals, is only mentioned in passing. "This package is the first crucial step in a concerted effort to create and save 3 to 4 million jobs." This is a little twist on what is being said in public. The general assumption about job creation under the program is that it will add 3 to 4 million jobs. But in the introduction to the Bill the assumptions about job loss are laid out quite clearly: "Credit is frozen, consumer purchasing power is in decline, in the last four months the country has lost 2 million jobs and we are expected to lose another 3 to 5 million in the next year." The mathematics of the two sets of employment analysis taken together would show then that no new jobs would be created at all. The three million or so jobs which will be lost in 2009 will simply be replaced by three million new ones. The jobs lost late in 2008 will not be replaced in this program, leaving a two million job deficit Joblessness will stay at about 7.2% Other than those details, the money will be well spent. The states need help, and the federal government means to provide it: A sum of $79 billion in state fiscal relief will be provided to prevent cutbacks to key services After the plans to help the states, cut taxes, and provide new infrastructure for the nation, the programs get a little off track. The Bill means to spend $44 million to repair the US Department of Agriculture's headquarters. About $400 million will go to repairing national monuments in Washington, which are somehow considered essential to national infrastructure. Additionally, Congress plans to pay out $200 million to provide financial incentives for teachers and principals to do their jobs better. Another $100 million will be used to establish a set of grants to provide $100 to local governments and nonprofit organizations to remove lead-based paint hazards in low-income housing. Perhaps the best investment in the Bill is for $80 million to ensure that worker protection laws are enforced as recovery infrastructure investments are carried out. In other words, there will be a police system set up to make sure that no one with a new job working on national infrastructure with money provided by the government will have his or her rights violated. The bill calls for over one hundred programs which Congress plans to enact. These include addressing problems as diverse as community block grants, upgrading the forestry service, bridge removal, and NASA research funding. The remarkable thing about the legislation is that almost every program is ill-defined and subject to broad interpretation and a wide variation as to how it might be enacted. In a sentence, The American Recovery and Reinvestment Bill of 2009 will have to build a bureaucracy larger than any ever created by the US government in order to manage its many parts. The first sentence of the Bill reads "The economy is in a crisis not seen since the Great Depression." If it requires all of these plans to get America back on the road to recovery, the process will take a decade. Douglas A. McIntyre Source: 24/7 Wall St. | 22 Jan 2009 | 8:20 am UPDATE 1-Melrose starts production at Egyptian well* Defers drilling at Ramsey No.1 well in Texas (Adds details)Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:19 am Swiss nuclear smuggling suspect claims CIA linkA Swiss man suspected of involvement in the world's biggest nuclear smuggling ring claims he supplied the CIA with inside information that led to the breakup of the black market network ledSource: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:14 am China advertising mkt up in '08; slowdown looms -reportBEIJING, Jan 22 (Reuters) - China's advertising market grew 15 percent to 441.3 billion yuan ($64.5 billion) in 2008, enjoying a one-time boost from the Olympics, but the industry could face an abrupt...Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:12 am UPDATE 2-AU posts record quarterly loss, but sees Q1 bottom* AU posts record quarterly loss, first loss in nearly 2 yrsSource: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:10 am RPT-UPDATE 6-Sony warns of $2.9 bln loss, biggest ever*Shares close down 2.6 pct in Tokyo ahead of announcement (Repeats to additional subscribers)Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:07 am Novozymes FY profit in line with consensusCOPENHAGEN, Jan 22 (Reuters) - Novozymes , the world's leading maker of industrial enzymes, reported on Thursday full-year 2008 operating profit in line with expectations and increased its long-term financial...Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:06 am FACTBOX-Obesity is top health concern in U.S.Jan 22 (Reuters) - The following are facts about obesity in the United States.Source: RSS feed - channel BNewsBusiness | 22 Jan 2009 | 8:04 am Morrisons outstrips its rivals over ChristmasWm Morrison has confirmed the trend towards low-cost supermarkets by reporting a strong performance over Christmas, comfortably outstripping and taking business from rivals such as Tesco and J Sainsbury.Source: Latest Business News from Times Online | 22 Jan 2009 | 8:03 am Asian stocks up despite signs of deepening slump (AP)
Source: Yahoo! News: Stock Markets News | 22 Jan 2009 | 8:02 am City watchdog: banking system needs profound changeThe banking system must undergo “profound” changes if a repeat of the current collapse is to be avoided in future, the head of the City watchdog has warned.Source: Latest Business News from Times Online | 22 Jan 2009 | 8:00 am Heroic pilot helps make case for the value of experienceIndustries that lay off their older workers or hustle them into early retirement to clear the ranks for younger and cheaper employees often end up regretting the loss. ...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Toyota overtakes GM in 2008 salesThe skid to No. 2 may help drive the Detroit carmaker to focus on profit, not volume. Getting beat by Toyota just...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Hilton Hotels to leave Beverly Hills headquartersThe move has been expected since Blackstone Group bought the chain in 2007. Hilton Hotels Corp., one of Southern...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Richard Parsons to become chairman at CitigroupWell-known exec will follow Win Bischoff, who retires this year. Citigroup Inc. is replacing its chairman with...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Treasury secretary nominee Geithner apologizes for 'avoidable mistakes' on taxesHe provides more details on unpaid taxes to the Senate Finance Committee. A confirmation vote could come as soon as Thursday. ...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am EBay posts first-ever drop in quarterly salesThe auction giant's profit slides 7% from the year-earlier period. In another sign that the retail downturn is...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Intel to close its last factory in Silicon ValleyThe chip maker will also shut plants in Oregon, Malaysia and the Philippines. Intel Corp. said Wednesday that...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Apple beats Street in holiday quarter; shares soarBrisk last-minute iPod sales help deliver record revenue and profit. Despite a joyless holiday for most retailers,...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am California hospitals graded on death ratesA state study finds facilities vary widely on mortality for eight common conditions and procedures. Some hospitals...Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Tech, financial stocks lead Wall Street higherNEW YORK -- Investors acted today like they had overdone it a day earlier.Source: RSS feed - channel BNPaperBusiness | 22 Jan 2009 | 8:00 am Pound still close to 23-year lowSterling remains close to a 23-year low against the dollar, erasing earlier gains made on G7 speculation.Source: BBC News | Business | World Edition | 22 Jan 2009 | 7:47 am Porsche's secretHow the luxury German carmaker made billionsSource: BBC News | Business | World Edition | 22 Jan 2009 | 7:46 am Asia stocks rise but slowdown fears widespread (Reuters)
Source: Yahoo! News: Business | 22 Jan 2009 | 7:40 am Asia stocks rise but slowdown fears widespreadHONG KONG (Reuters) - Asia stocks rose on Thursday, as investors snapped up beaten down bank shares and pinned their hopes on policy action to support growth, but economic gloom held the yen near a 13-year high against the dollar.Source: Reuters: Business News | 22 Jan 2009 | 7:40 am Sony predicts first annual loss in 14 yearsSony today unleashed a massive profits warning, predicting its first operating loss in 14 years and crushing hopes that costcutting and other restructuring efforts by Sir Howard Stringer, its first non-Japanese chief executive, would yield any immediate relief.Source: Latest Business News from Times Online | 22 Jan 2009 | 7:39 am British Gas in 10% gas price cutBritish Gas will reduce gas prices by 10% from 19 February, which it says will cut £84 from the average annual household bill.Source: BBC News | Business | World Edition | 22 Jan 2009 | 7:34 am Australian stocks: Market closes mildly higherSYDNEY- The Australian share market closed mildly higher with gains in the resources sector despite a sell off in metal prices after it was reported the Chinese economy grew by nine per cent in 2008. At the 1615 AEDT close, the...Source: New Zealand Herald - Business | 22 Jan 2009 | 7:26 am Sony sees first loss in 14 yearsElectronics giant Sony says it will make its first annual loss in 14 years as the global slowdown hits demand.Source: BBC News | Business | World Edition | 22 Jan 2009 | 7:20 am Sony forecasts $2.9bn operating lossThe Japanese consumer electronics group said it would plunge to a Y260bn operating loss in the year to March 2009 as the global downturn and strong yen wreak havoc on salesSource: Financial Times - US homepage | 22 Jan 2009 | 6:42 am Oil pauses above $43SINGAPORE (Reuters) - Oil steadied above $43 on Thursday, after jumping nearly 7 percent a day ago, as traders weighed the impact of OPEC's supply cuts with more signs of weakening demand in the world's top oil users.Source: Reuters: Business News | 22 Jan 2009 | 6:40 am China's economic growth slowsChinese economic growth slowed to 9% last year after a fall in exports, its lowest rate of growth for seven years.Source: BBC News | Business | World Edition | 22 Jan 2009 | 6:31 am Bank of Japan holds rates unchanged and sees deflation aheadThe Japanese economy will slip back into deflation for next two fiscal years as the economy shrinks, the Bank of Japan forecast Thursday after revising down its assessment of the economy and holding interest rates unchanged.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 6:24 am Sony forecasts bigger-than-expected loss (Reuters)
Source: Yahoo! News: Business | 22 Jan 2009 | 6:20 am L&T eyes Satyam: reportHYDERABAD, India (Reuters) - Indian engineering and construction firm Larsen & Toubro Ltd was likely to present a revival plan to the board of fraud-hit Satyam Computer Services Ltd, local media reported on Thursday.Source: Reuters: Business News | 22 Jan 2009 | 6:08 am NZ stocks: Market closes over 1pc higherThe New Zealand share market hitched a ride higher with a rebounding US market today. The benchmark NZSX-50 index closed up 29.37 points, or 1.086 per cent, at 2734.411. The move came after the Dow rose 3.51 per cent and as Australia's...Source: New Zealand Herald - Business | 22 Jan 2009 | 6:08 am Currency: Dollar holds firm but trend still downThe New Zealand dollar managed to hold firm today after rebounding from lows on Wednesday. The trend is down and the NZ dollar's rebound is being put down to sellers taking profits and a squeeze on traders holding so-called short...Source: New Zealand Herald - Business | 22 Jan 2009 | 5:55 am China GDP growth at 6.8% as crisis bitesChina's economic slowdown deepened in the last quarter of 2008 as slumping exports combined with a weak housing market to sharply reduce the growth rate of the economySource: Financial Times - US homepage | 22 Jan 2009 | 5:49 am Labour calls for law change to freeze MPs payLabour leader Phil Goff says if Prime Minister John Key is serious about freezing MPs pay he should change the law. The independent Remuneration Authority determines pay rises for MPs, the judiciary and specified statutory officers...Source: New Zealand Herald - Business | 22 Jan 2009 | 5:36 am David Weidner's Writing on the Wall: Evasion has two new faces: Madoff and GeithnerThe Obama administration is less than a week old, but we’re already being asked to accept some sacrifice in our lives: the double standard that the rich and powerful can skate on their obligations while the rest of us suffer the hard consequences.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 5:01 am Therese Poletti's Tech Tales: Obama jubilence on social networks can't hide startup issuesSocial networks have been atwitter the past few days with opinions, observations and general jubilation about the historic inauguration of President Barack Obama, who also happens to be one of the most technologically savvy U.S. chief executives ever. But these burgeoning companies don't have a stable revenue stream to speak of.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 5:01 am David Callaway: After the Obama hype, awaiting the help on Wall StreetThere's an old saw on Wall Street called upon anytime somebody gets too optimistic about the future for the markets: Hope is not an investment strategy.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 5:01 am Peter Brimelow: Gold bounces backWhen I last wrote on gold, the metal's very promising year-end rally was attracting attention, especially because the world's banking problems, and the response of governments, had created an outstanding macro case for gold.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 5:01 am Irwin Kellner: Housing corrections appears to be nearing an endAnd now for some good news: the mother of all housing corrections appears to be nearing an end.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 5:01 am The Quagmire in DetroitWhen Barack Obama was running for President—as opposed to, you know, being President—he criticized the Bush administration for not having a clear exit strategy in Iraq. It isn't too early for the new President and his advisers to start asking themselves that same question about Detroit.Put another way: Unless Detroit is to become an industrial version of Iraq, we need an exit strategy as part of the government financial assistance program—which the Obama administration will soon start to reshape in its own fashion, after inheriting the interim "bridge loans" from President Bush. The exit strategy must be clear to everyone, especially to the companies and the United Auto Workers union. It needs three key elements: limits on money, limits on time and real power for any "car czar" to decide the terms of Detroit's restructuring, as a bankruptcy trustee would do. All three things are critical because Detroit's needs have a way of, well, evolving. Exhibit A is the new deal under which Fiat will ride to the rescue of Chrysler, sort of. The non-binding agreement announced this week calls for the Italian auto maker to get 35 percent of Chrysler. Fiat won't put any cash into the ailing American automaker, but it will pay for retooling Chrysler's U.S. factories to build new small cars based on Fiat's designs. The problem here is that the new Dodge Italianos won't hit the market for the better part of two years. That's how long it takes to redesign a car, even one that's based on an existing European design, for the U.S. market and to retool the factory to build it. Meantime, Chrysler is out of money. So how is the company supposed to stay alive for two more years? Is the government supposed to keep pouring cash into Chrysler even though the company's two major shareholders—Fiat (assuming the deal is completed) and Cerberus LP, the private-equity firm—have decided not to do so? The other big issue here is that the entire auto industry is beset by excess capacity—even mighty Toyota, which expanded its U.S. operations far too rapidly in recent years. So if Chrysler stays alive, even in shrunken form, the capacity cuts will have to occur at other car companies. So government subsidies might be a lifeline for Chrysler, but they will hurt other car companies that are struggling to survive. Meanwhile, the news is just in that General Motors has officially lost its position as the world's largest car company, in terms of sales, after 77 years. GM sold 8.4 million cars worldwide last year, compared to just under 9 million for Toyota. Believe it or not, this might actually be good news. Free of the burden of history to retain the "world's largest" title (which GM actually lost years ago in terms of market cap and everything except vehicles sold), General Motors executives might find it psychologically easier to shrink the company by shedding four or five ailing brands. The keepers are Cadillac, Chevrolet, and GMC. Saab, Hummer, Pontiac, Saturn and Buick should go, so GM can focus its resources instead of spreading them too thinly. As things stand now, General Motors and Chrysler are the only two companies that have accepted federal aid. (Ford is leaving the door open, but says it hopes to avoid going on the dole.) The two companies must present preliminary survival plans to the government by February 17, and deliver their full-fledged plans to the feds by March 31. There is very little doubt that both companies will ask for yet more taxpayer dollars. Which brings us back to the matter of an exit strategy. The only way for the government to get out of Detroit cleanly will be with a restructuring process for the companies that accept government aid. The restructuring will be modeled after Chapter 11 bankruptcy proceedings, though perhaps called something else. The purpose isn't to punish the Detroit companies, but to help them. Unless General Motors and Chrysler can reduce their debt loads, eliminate unneeded brands, and rid themselves of the cumbersome work rules in their union contracts, they'll never get off the dole. General Motors seems to be recognizing this. Late last year the company steadfastly maintained that bankruptcy "isn't an option." But recently, CEO Rick Wagoner said the company has to be prepared for "any option." GM needs to make that implied bankruptcy threat explicit. Why, after all, will the bondholders, dealers, and United Auto Workers union give ground in negotiations when they believe the government will keep shoveling money into the companies indefinitely? We saw the futility of voluntary negotiations late last year when GMAC bondholders refused to give enough ground for GMAC to meet the Federal Reserve Board's requirements for becoming a bank holding company (and thus getting more federal aid). So the Fed simply waived its requirements for GMAC to qualify, and started shoveling in dollars. That isn't an exit strategy. During the first Chrysler bailout 28 years ago, strict and binding conditions were required for the company to get government aid. Chrysler was given six months after the passage of the Loan Guarantee Act to get specified concessions from the UAW, lenders, dealers, and others before it actually could start drawing down the money. The painstaking negotiations that followed almost failed. But in the end, all the "constituencies" knew that if they didn't give ground, Chrysler would collapse and they would wind up with nothing. Unfortunately, there's no time for six months of negotiations now because GM and Chrysler already are out of money, and will soon be asking for more. So any federal "car czar" must get exactly the same powers as a Chapter 11 bankruptcy trustee to impose settlement terms. That will make an exit strategy possible.Related Links Detroit Needs a Miracle Detroit Gets a Bridge Jump-Starting a Bailout Source: Portfolio.com: Top 5 | 22 Jan 2009 | 5:00 am Japan exports plunge by record; China growth slowsTOKYO/BEIJING (Reuters) - Japanese exports plunged a record amount in December and China's economy slowed sharply in the fourth quarter as recessions in rich nations hammered the demand that Asia's top two economies rely on for growth.Source: Reuters: Business News | 22 Jan 2009 | 4:48 am China's economic growth in dramatic slowdownChina's economic growth slowed dramatically towards the end of last year, seeming to bear out a warning this week from Premier Wen Jiabao that 2009 would be the most difficult year so far this century for its development.Source: Latest Business News from Times Online | 22 Jan 2009 | 4:47 am Citigroup names Parsons chairman; Bischoff retires (Reuters)
Source: Yahoo! News: Business | 22 Jan 2009 | 4:46 am Citigroup names Parsons chairman; Bischoff retiresNEW YORK (Reuters) - Citigroup Inc named former Time Warner Inc Chief Executive Richard Parsons as its chairman, the latest high-level personnel change to shake a U.S. bank clobbered by the credit crunch.Source: Reuters: Business News | 22 Jan 2009 | 4:46 am Apple profit beats expectations, shares jumpSAN FRANCISCO (Reuters) - Apple Inc's quarterly profit beat expectations on strong iPod and Mac computer sales, and the company gave an outlook that cheered investors, sending its shares up 9.5 percent on Wednesday.Source: Reuters: Business News | 22 Jan 2009 | 4:01 am Taxing timesWhy the new US treasury secretary failed to paySource: BBC News | Business | World Edition | 22 Jan 2009 | 3:41 am Hank Paulson's next gigIn the midst of all the inaugural hubbub, news of Hank Paulson's next act got little attention. The former Secretary of the Treasury, who finished his run last Friday, will be taking a position at Johns Hopkins University's School of Advanced International Studies (SAIS).Source: Business and financial news - CNNMoney.com | 22 Jan 2009 | 3:35 am China's economic growth eases sharplyChina's economy grew at its weakest pace in seven years in the fourth quarter, as slumping exports put the brakes on the world's fastest-growing major economy.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 3:15 am Investors see economy slowing Google's growthNEW YORK (Reuters) - Wall Street is reining in its usual optimism for Google Inc as analysts worry the Web search leader's fourth-quarter earnings could be hit by keyword pricing deflation as the U.S. recession takes hold.Source: Reuters: Business News | 22 Jan 2009 | 2:12 am Japan exports suffer massive decline in DecemberJapanese exports fell by a larger-than-expected 35% in December, the biggest fall on record, stoking concerns that firms could accelerate layoffs and idle production as the global recession deepens.Source: MarketWatch.com - Top Stories | 22 Jan 2009 | 2:07 am eBay earnings slump as recession hitsNEW YORK - Quarterly earnings fell 31 per cent at eBay, indicating that its internet auctions are being hurt by the recession just like traditional retail sales. The results, combined with a forecast below analysts' expectations,...Source: New Zealand Herald - Business | 22 Jan 2009 | 2:00 am Apple profit beats expectations, shares jump (Reuters)
Source: Yahoo! News: Business | 22 Jan 2009 | 1:50 am Stocks rebound on IBM, banks; Apple jumps lateNEW YORK (Reuters) - Stocks jumped on Wednesday, rebounding from a two-month low, after a surprisingly healthy earnings report from IBM fueled optimism that technology may fare better than other sectors during the recession.Source: Reuters: Business News | 22 Jan 2009 | 1:46 am Dubai hit hardThe credit crunch is hitting Dubai's fragile economySource: BBC News | Business | World Edition | 22 Jan 2009 | 1:44 am Cox Quits at SEC, Leaves Schapiro to Restore Clout (Bloomberg)Bloomberg - Jan. 21 (Bloomberg) -- Christopher Cox stepped down as U.S. Securities and Exchange Commission chairman, leaving behind a demoralized agency that failed to spot Bernard Madoffâs alleged fraud and had its role diminished by the collapse of Bear Stearns Cos. and Lehman Brothers Holdings Inc.Source: Yahoo! News: Stock Markets News | 22 Jan 2009 | 1:31 am Aussie drinks man named new Jade CEOCraig Richardson, an Australian citizen running a drinks business with annual revenue of $500 million has been named chief executive of Christchurch-based Jade Software Corporation, which has annual revenue of $45.5m. Richardson,...Source: New Zealand Herald - Business | 22 Jan 2009 | 1:30 am Apple escapes downturn as iPod sales growApple reports record sales of its iPod media players, while iPhone unit sales were up 88% compared with a year ago and Mac computer sales rose 9%.Source: Financial Times - US homepage | 22 Jan 2009 | 1:26 am J Crew shares up after Obamas don its clothing (AP)AP - Share of J. Crew Group Inc. jumped Wednesday after news spread that many items worn by the first family during this week's inauguration events were from the national retailer.Source: Yahoo! News: Business | 22 Jan 2009 | 1:05 am Parsons takes over as Citi chairmanRichard Parsons will now take over as chairman of the bank and he has already called on the Obama administration not to nationalise the country's banksSource: Financial Times - US homepage | 22 Jan 2009 | 1:04 am Kiwi dollar near six-year low then bouncesThe New Zealand dollar fell against the greenback for most of the night, getting close to the six-year low hit yesterday before staging something of a late recovery. By 8am today the kiwi was buying US52.48c, after falling to a...Source: New Zealand Herald - Business | 22 Jan 2009 | 1:00 am After The Close - WednesdayF5 NETWORKS (FFIV), the network-gear maker, lifted Q1 EPS 90% to 40 cents ex items, meeting views. Sales rose 7% to $165.6 mil, just below views....Source: Investor's Business Daily: BUSINESS | 22 Jan 2009 | 12:45 am In Brief - WednesdayBHP Billiton (BBL), the mining giant, plans to slash 6,000 jobs, or 6% of its global work force, due to falling demand. Shares rose 6.9% to 38.80.Source: Investor's Business Daily: BUSINESS | 22 Jan 2009 | 12:45 am DVD Rental Firm Finds Its Own Way To Movies Over The InternetIn the emerging market for movies delivered over the Internet, Netflix is happy to be blazing its own path.Source: Investor's Business Daily: BUSINESS | 22 Jan 2009 | 12:45 am Trends & Innovations - WednesdayFood more appealing to womenSource: Investor's Business Daily: BUSINESS | 22 Jan 2009 | 12:45 am Business Briefs - WednesdayPNC surges on lower loan losses. The financial services company jumped 37% to 30.16 after it said it expects lower loan losses than originally...Source: Investor's Business Daily: BUSINESS | 22 Jan 2009 | 12:45 am Value of card transactions falls in DecemberOnly some of the savings from lower petrol prices in December were spent elsewhere, new data from Statistics New Zealand (SNZ) suggests. Struggling retailers had been hoping for a decent Christmas period, and the data published...Source: New Zealand Herald - Business | 22 Jan 2009 | 12:30 am Ebay profit falls, shares sinkRead full story for latest details.Source: Business and financial news - CNNMoney.com | 22 Jan 2009 | 12:22 am eBay sees profit and revenue dropRevenue and profit fall at auction website eBay as it struggles to cope with the economic downturn.Source: BBC News | Business | World Edition | 22 Jan 2009 | 12:14 am EBay forecast disappoints Wall St view; shares drop (Reuters)
Source: Yahoo! News: Business | 22 Jan 2009 | 12:13 am EBay forecast disappoints Wall St view; shares dropSAN FRANCISCO (Reuters) - EBay Inc posted lower fourth-quarter profit and revenue on Wednesday, and gave a weaker-than-expected forecast for the current quarter, sending its shares down nearly 6 percent.Source: Reuters: Business News | 22 Jan 2009 | 12:13 am The 24/7 Wall St. Twenty-Five Best Financial Blogs
This is a list of independent blogs. However, several major media outlets have excellent blog sections including David Gaffen at WSJ.com, Fortune.com’s Apple 2.0 blog, BusinessWeek.com’s Fine On Media, and BloggingStocks at AOL (24/7 contributes content to this site). Obviously, these blogs have a level of financial support that independent blogs do not enjoy. Their writers are paid salaries. They have greater exposure due to their relationship with larger websites. They are excellent, but really should not be compared with websites operated by one person or a small group of individuals. Nevertheless, they should be recognized for their own commentary as well as the exposure that they give to independent blogs. Financial information on blog sites is not readily available. Most financial blogs are much too small to bring in enough direct revenue to support their writers. Some have newsletters, but it is impossible to know what they yield. A number run Google AdSense links on their sites to generate ad revenue, but, based on data gathered from a few financial blogs, if a site is not in the top of its category as measured by audience tracking sites like Quantcast, Alexa and Compete, it is unlikely to have enough revenue to support even one or two people. Financial blogs end up being either labors of love or ways to promote small money management or paid newsletter businesses. It would seem to be a tough way to make a living. Over the last month, 24/7 Wall St. has looked at more than one hundred financial blogs The list came from those blogs mentioned at major media sites and the largest aggregators of financial blogs, SeekingAlpha and Bloggingstocks. We also reviewed the lists of “blogrolls” – favorite blog lists – at long-established financial blogs like The Kirk Report and financial commentary sites like Minyanville After we narrowed the number of financial blogs down to about 50, we tracked posts for several weeks before picking the final twenty-five. Original content was our most important measurement: specifically, content that was well-written, well-researched and crisp. Blogs that were mostly aggregations of content from mainstream media did not make the cut. This meant that the majority of the copy had to be directly written by the blog's author(s). Blogs that used profanity were also excluded from the list. It is well recognized that traders are a notoriously bawdy bunch. And, unfortunately, a number of these blogs are incredibly insightful. However, our aim was to create a list that avoided offending any of our reader’s delicate sensibilities. Anonymous blogs also did not make the cut. It is too difficult to understand the agenda of a blog where readers cannot figure out the writer’s identity and potential motivations. 24/7 Wall St. also looked at how well read the blogs were based on the number of other blogs that linked to each of the websites on our list. These figures were provided by Technorati, the internet’s leading blog search engine. (Because Technorati indexes more than 1.5 million new blog posts in real time, these numbers are subject to change.) This is the one audience or traffic metric that is universally available for all the websites on the list. Here are Top Twenty-Five financial blogs, in no special order: 1. Mish’s Global Economic Trend Analysis (7,903 links). Although Mish (aka Mike Shedlock) is not an economist by training, he adroitly gets into the thick of economic data. Mish looks at comments made by the major media, so–called experts and government officials and serves up trenchant analysis based on his impression of their relevance and validity. The author is not afraid to attack conventional wisdom. 2. Footnoted.org (598 links). The blog’s author, Michelle Leder, digs through SEC filings and comes up with some of the best insights about the “hidden” comments found in 8Ks, 10Qs, and other government filings that rarely get as careful a review. This is one of the oldest financial blogs, founded in 2003. 3. Bill Cara’s Cara Community (389 links) analyzes the capital markets, stock movements, and the economy with an eye to technical guides including volatility, cash flows, trading volume, and price performance and is prolific almost beyond comparison. 4. Infectious Greed (3,822 links). Blogger, Paul Kedrosky, is considered one the preeminent financial market pundits. His site reflects the perspective of a former technology analyst, institutional money manager, and venture capitalist. Infectious greed provides a running commentary on global markets, economic trends, and emerging business trends. 5. Bespoke Invest, also known as “Think Big” (6,112 links), is the blog for a money management and research firm. The site provides a combination of technical analysis and commentary on macroeconomic trends, major sectors of the stock market, and currencies. 6. Angry Bear (2,447 links) is the product of a half dozen Ph.D economists, an historian, and financial professionals. The writers provide individual perspectives on broad sectors of the economy based on their unique training. They look at topics as varied as worldwide trade and industrial production as well as US government programs and regulations like Social Security. 7. The Big Picture by Barry Ritholtz (11,223 links) has recently moved from his long-standing site on typepad, where he's been since 2002, to http://www.ritholtz.com. Ritholtz is one of the most well-respected market and economic pundits and bloggers who manages money as his day job. Multiple posts a day on subjects as diverse as criticisms of the business press, digital media, and key economic indicators. Sophisticated analysis made clear by an unmistakably irreverent voice and excellent use of charts, tables, and graphs. 8. Naked Shorts (833 links) covers ETFs, hedge funds, monetary policy, and current events. Bangs on hedgies and the accounting profession and its practices. Not fond of the practices of many US government agencies. 9. A VC (2,777 links). Long-time venture capitalist Fred Wilson passes along his opinions on new technology and how it converges with emerging parts of the economy. Wilson talks in detail about where he is investing his venture capital money and why. His Union Square Ventures has taken positions in new ventures including Del.icio.us, Feedburner, and Twitter. 10. SeekingAlpha (63,563 links), the grandfather of financial blog aggregation, also has its own editors and columnists. This is by far the largest collection of financial blog posts in the world. Readers who want to find articles from hundreds of sites get a one-stop-shop at SeekingAlpha. If it were not for this website, a large number of blogs would have almost no readers. 11. Clusterstock (1,613) links) follows and comments on business, the stock market, and economic news throughout the day. It has a staff of several outstanding writers lead by Henry Blodget. Articles by John Carney are particularly good. It is now combined with another strong site called Silicon Alley Insider. 12. 1440 Wall Street (1,216 link). Although the site is “intended for the institutional equities crowd,” we won’t hold it against them - it’s still very good. Covers money markets, sell side, buy side, private equity, Wall St. research, and media. Strong analysis. Strong on multimedia. 13. The Kirk Report (1,571 links). This is one of the oldest financial blogs and it has been consistently good. It has a number of articles which are simply links to other sites. Strong on stock analysis, market recommendations, and volume investing. Too bad some of the content requires being a “member.” 14. Calculated Risk (11,057 links) is among the most thoughtful and thorough financial commentary on the internet. Period. Tears apart poor economic assumptions. Gets to the heart of the elements that move the economy and markets. Big focus on housing and economic analysis 15. Abnormal Returns (1,009 links). Disregarding our own rules for what blogs should be on this list, this site is the only one that simply provides lists of links to other financial sites. However, there’s a reason we’re making an exception as these are carefully selected and come with good short intros. Links are regularly organized by subject. 16. TraderFeed (2,437 links). The author, Brett Steenbarger, is one of the most intelligent voices in the financial blog business. Strong on technical analysis, broad market commentary, and the psychology behind trading behavior. 17. Alpha Trends (1,046 links). Extremely strong technical analysis. Good video commentary which it claims is the highest subscription membership for financial videos on YouTube. Covers stocks, ETF, and index movement. 18. Econbrowser (6,597 links). Run by two professors, both with economic backgrounds. What readers would expect from academics looking at the markets. Indepth and often complex analysis of a broad range of topics from infrastructure to policy making to consumer spendings. More than any other site on this list, Econ Browser is not for sisses. 19. Peridot Capitalist (192 links). Written by a money manager, one of the oldest and better regarded financial blogs. Good corporate earnings analysis and looks at undervalued stocks. 20. Information Arbitrage (957 links) The author has been in the M&A and derivatives businesses for some time. Strong and rich commentary on current financial events, investment risks and rewards, and the current credit and economic crisis. 21. Maoxian (290 links). Strong pieces on day trading, technical trading, balance sheets, and ETFs. Strange graphics. Writer tries to be anonymous, but it hasn’t worked. 22. 10Q Detective (277 links). Writer has been an equity analyst. Good at digging through government filings to find information for investors which is both helpful and sometimes amusing. Good place to read how public companies “game” the process of SEC reporting. 23. Ticker Sense (538 links). This site may be the most well known for its weekly poll of financial blogger sentiments about the market. Written by money management firm Birinyi Associates. Has excellent analysis of global economy and major sectors of the stock market. Use of tables and graphs is among the best. 24. Upside Trader (356 links) Good technical analysis which follows the market carefully. Strong charting on individual companies. Great place for day traders. 25. Carl Futia (133 links). One of the best financial forecasting blogs. Employs various technical analysis including some he has developed. Notable for his thoughtful and approachable writing. Posts very regularly. Douglas A. McIntyre and Ashley C. Allen Source: 24/7 Wall St. | 22 Jan 2009 | 12:03 am Financial, tech stocks lead Wall Street higher (AP)
Source: Yahoo! News: Stock Markets News | 22 Jan 2009 | 12:02 am It's a bitter chill but Britain is not IcelandThe economy is in a bad way and government finances are in an awful state, but let's get a sense of perspective. The City is not Reykjavik on Thames. Britain is not Iceland. Sterling has fallen a long way and may fall further. But Britain is not bankrupt.Source: Latest Business News from Times Online | 22 Jan 2009 | 12:00 am Britannia Co-operative joint super-bank faces hitchA new “super-bank” was created yesterday, but immediately ran into potential trouble over its credit rating.Source: Latest Business News from Times Online | 22 Jan 2009 | 12:00 am Northern Rock staff awarded 10% bonusNorthern Rock triggered a political row last night when it revealed that it was preparing to pay about £9 million in staff bonuses.Source: Latest Business News from Times Online | 22 Jan 2009 | 12:00 am Channel 4 would have to show children's programmes under rescue planChannel 4 would have to broadcast children's programmes for the first time under a proposed tie-up with the BBC or Five aimed at securing its future.Source: Latest Business News from Times Online | 22 Jan 2009 | 12:00 am Need to know: Corus selling... KLM legal action... Avon profitableView video and Need to Know interactive heatmapSource: Latest Business News from Times Online | 22 Jan 2009 | 12:00 am Apple shrugs off recession, thanks to iPodCUPERTINO, California - Apple's profit in the holiday quarter edged up 2 per cent and beat Wall Street's expectations, buoyed in part by growing iPod sales outside the U.S. The iPod and iPhone maker's predictions for the current...Source: New Zealand Herald - Business | 22 Jan 2009 | 12:00 am Apple trounces Wall Street estimatesShares of Apple Inc. jumped 9% in after-hours trading Wednesday, after the computer and electronics maker said its fiscal first-quarter earnings soundly beat analysts' estimates despite a difficult environment for tech sales.Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 11:55 pm Merrill delivered bonuses before BofA dealMerrill Lynch took the unusual step of accelerating bonus payments by a month last year, doling out billions of dollars to employees just three days before the closing of its sale to Bank of AmericaSource: Financial Times - US homepage | 21 Jan 2009 | 11:52 pm VIX Index of U.S. Stock Option Prices Retreats 18% to 46.42Source: Bloomberg - All Podcasts | 21 Jan 2009 | 11:48 pm Nextier's Seibert Cautious on ETFs as Stocks Continue SlideSource: Bloomberg - All Podcasts | 21 Jan 2009 | 11:46 pm Food banks: 30% rise in needyIn his Senate confirmation hearing Wednesday, Treasury Secretary nominee Tim Geithner told a sobering story about the economy, talking of a severe recession that has cost the nation millions of jobs.Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 11:39 pm Apple posts best quarterly profitApple posts strong quarterly results that show the company's resilience to the economic downturn.Source: BBC News | Business | World Edition | 21 Jan 2009 | 11:37 pm Stocks rebound on IBM, banks; Apple jumps late (Reuters)
Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 11:37 pm AIG starts $20bn auction of Asian unitAIG, the stricken insurance giant, kicks off the sale of its Asian life assurance unit – one of its most prized assets – in the hope of raising up to $20bn to help repay the $60bn US government loan that is keeping the group aliveSource: Financial Times - US homepage | 21 Jan 2009 | 11:30 pm Rusal weighs 'standstill' pleaThe aluminium group is looking for more time from its foreign banks in order for it to restructure its $17bn debtsSource: Financial Times - US homepage | 21 Jan 2009 | 11:30 pm Aussie mining giant to axe 6000 jobsThe days of kiwis heading over to Western Australia to get a good-paying job in the mining industry seem to be over. Employers BHP Billiton and Rio Tinto have closed the door on any new employment. Mining giant BHP Billiton...Source: New Zealand Herald - Business | 21 Jan 2009 | 11:30 pm Scorecard for the major stock market indexes (AP)
Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 11:16 pm Write-Offs: 01.21.09$$$ Maria Bartiromo sticking with the peacock [NYP] $$$ Dimon Bought $11.5 Million in JPM Stock Last Week [Bloomberg] $$$ Why Do I Keep Having to Repeat Myself? [1-2] $$$ "Falsely no doubt"? Considering the "rumor" originated in the fucked up imaginations of this here website, I think we'll be the ones determining what's false and what's not, thank you very much. (And false it is not. The big guy really did task his top employees with shutting the Kogans down. Confirm it as 203-890-2000.) That is all. (Steve backs me up on this, btw.) [FWIW via ZeroHedge] 
Source: Dealbreaker | 21 Jan 2009 | 11:12 pm SEC charges missing money manager Nadel with fraud (AP)
Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 11:04 pm Luigi Zingales Opposes U.S. Bank NationalizationSource: Bloomberg - All Podcasts | 21 Jan 2009 | 10:59 pm Intel cuts to affect up to 6,000 workersChipmaker Intel Corp. announced Wednesday that it will be cutting production at two U.S. silicon wafer facilities and closing three facilities in Asia, affecting between 5,000 and 6,000 workers.Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 10:55 pm Toll's 3.99% 30-Year Mortgage Incentive (TOL)
Before you go rush over there, it appears that there are caveats that
it has from its lender. There are probably many more caveats than what we found. This is a full point edit score under what the predominant rates have been. So it comes with no shock that a borrower here needs a 720+ credit score AND requires 20% down without that private mortgage insurance that borrowers have resented since the creation of PMI. These are also the conforming type of mortgage loans which are $417,000.00 and under, and it looks like this rate carries no points. Toll Brothers has housing all down the Eastern Seaboard, as well as in Texas, Nevada, California, and more. When the company gave results in December, it gave an average selling price of signed contracts as $495,000, down from $579,000 in the prior quarter. So just assume it is a $400,000.00 house for argument's sake. Bankrate.com lists 5.20% as the base rate for a 30-year fixed rate mortgage. The average mortgage there under the same terms of no points and 20% down (so a $320,000.00 mortgage) shows the following before adding in any taxes, escrow, and more:
This does not include any additional items like property taxes, escrow, insurance, and other items. But you can see that a difference of more than $230.00 per month on a $400,000.00 home, or a $320,000.00 mortgage, would cost. We pulled the $400,000.00 for an ease of calculation rather than a max-out on the conforming limits by then including the total mortgage rather than the purchase price of the house. It takes many months of $230+ savings to come close to that $80,000.00 theoretical down payment. But that is the new world of borrowing and lending. And it is not likely to change in the near-future. Regardless of how this goes, we still have one begging demand to Toll and all other homebuilders: PLEASE DO NOT BUILD ANY MORE HOUSES.... SUPPLY IS THROUGH THE ROOF, LITERALLY!!!! Before you go calling your own mortgage lender to see if you can refinance anywhere close to that 3.99% rate, keep in mind that this is for new homes being sold by the builder. Your mortgage broker will likely say something to the tune of "Yeah sure! With 20% down and a buy down of 10 points. If you were able to get approved for the loan." Toll Brothers in turn is likely having to pay out the difference to the lender in some form or fashion to make up the difference. It might not make sense on the surface, but it is a creative way of trying to pare down housing inventory if you are a homebuilder. Jon C. Ogg Source: 24/7 Wall St. | 21 Jan 2009 | 10:53 pm Parsons takes over as Citi chairmanCitigroup, the struggling financial titan that recently announced plans to split in two, is shaking up its board again.Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 10:47 pm U.S. charges missing Florida fund manager with fraud (Reuters)
Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 10:38 pm Risk test study of Madoff claimsA risk management specialist argues that two techniques could have shown that the returns by Mr Madoff were all but impossible to achieve through his so-called hedge fundSource: Financial Times - US homepage | 21 Jan 2009 | 10:37 pm Big Bank CEOs Buy Stock... Should You? (BAC, JPM)
This is frequently viewed as a move to show a vote of confidence on the part of management with the commitment of hard capital in a "putting their money where their mouths are" view. Bank stocks surged today, but keep in mind that this is on the heels of one of the largest percentage moves down yesterday. Ken Lewis of Bank of America Corp. (NYSE: BAC) bought some 200,000 shares yesterday, and other directors and insiders took the total insider buying to more than 500,000 shares of common stock. Jamie Dimon bought 500,000 shares of JPMorgan at an average price of $22.93 last Friday, making his purchase price around $11 million. JPMorgan shares closed up 25% at $22.63 today and its shares rose over 5% to $23.81 in the after-hours session. What is interesting here is that these purchases were not announced immediately. Considering how bad these banks tanked yesterday, you might think that the insiders might have at least considered getting the word out That does not always work, but committing hard assets into common stock by CEOs is about as good as it gets.
Jon C. Ogg Source: 24/7 Wall St. | 21 Jan 2009 | 10:01 pm Richard Parsons, The Biggest Loser, Takes Over Citigroup (C) Chairman's Job
Poor Sir Win Bischoff, who never meant anyone harm, stepped down as Chairman and will not be re-elected to the board. It is worth pointing out, no matter how many times it needs repeating, that Parsons was on the Citi board during the period when many of the decisions which undermined the bank's balance sheet were made. He also left Time Warner worse off than it was when he took over. At least Sir Win will not have to be around when Citi is finally driven into the ground. Douglas A. McIntyre Source: 24/7 Wall St. | 21 Jan 2009 | 9:52 pm Forcing banks to lend is a bad ideaIf you want taxpayer money, you better lend it out.Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 9:45 pm Hear: Banks Need MoreToday on Planet Money: -- Treasury Secretary-designate Tim Geithner took questions today on Capitol Hill. Dan Costello boils it down. -- The U.S. federal government has thrown hundreds of billions of dollars at banks, but the banks say they're still in trouble. What will it take to save them? Simon Johnson, former chief economist of the International Monetary Fund, says about $1.5 trillion, maybe -- whatever it costs for Plan A plus Plan B. -- Bank lobbyist Scott Talbott says his industry is willing to trade more government oversight for more government help. He's not crazy about nationalization, but he doesn't rule it out, either. Download the podcast; or subscribe. Intro music: Tegan and Sarah's "Where Does the Good Go." Find us: Twitter/ Facebook/ Flickr. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 21 Jan 2009 | 9:43 pm Apple Shines, Amazingly No Worms (AAPL)
Among the highlights:
Steve Jobs called this the first $10+ billion revenue quarter, and CFO Pete Oppenheimer said the company generated $3.6 billion in cash during the quarter. The company issued guidance of $0.90 to $1.00 non-GAAP EPS and revenue of $7.6 billion to $8.0 billion. Consensus estimates for the coming quarter are $1.13 non-GAAP EPS and $8.20 billion in revenue. Shares closed up almost 6% at $82.83 in regular trading, and shares soared 10% at $91.10 in the initial reaction to the data.
Jon C. Ogg Source: 24/7 Wall St. | 21 Jan 2009 | 9:41 pm Ebay (EBAY) Earnings: Expecting Nothing And Getting It
The lack of enthusiasm shows. Ebay shares trade at just over $13, down from a 52-week high of $33.47. Those who were prepared to be disappointed had their way. Ebay posted fourth quarter revenue of $2.04 billion. It posted net income on a GAAP basis of $367 million or $0.29 per share. EPS was off 29% from the same period in 2007. Ebay's core auction business was badly damaged. It has $1.27 billion in revenue, equating to a 16% year-over-year decline. As expected, PayPal continued to do relatively well but not well enough to save the rest of the firm. The payment business had $623 million in revenue, an increase of 11% year-over-year. Net total payment volume for the quarter was $15.99 billion, an increase of 14% year-over-year. Ebay's odd step-child Skype had $145 million in revenue for the quarter, representing 26% year-over-year growth. Skype added 35 million new users during the quarter and ended the period with more than 405 million registered users. Since most Skype customers use the service for free, all those extra people represent more cost than revenue opportunity. All in all, it was a dismal affair. The market beat Ebay's shares like a rented mule, pushing them down over 6% after hours to $12.40. Douglas A. McIntyre Source: 24/7 Wall St. | 21 Jan 2009 | 9:41 pm Obama ushers in an 'era of openness'President marks first full day by imposing a pay freeze on senior White House staff and ordering tough ethics rulesSource: Financial Times - US homepage | 21 Jan 2009 | 9:35 pm Are You Feeling The Faith Now?
Citi Names Richard D. Parsons as Chairman of the Board of Directors; Sir Win Bischoff to Retire
Source: Dealbreaker | 21 Jan 2009 | 9:35 pm Circuit City: Higher Prices! Even In Liquidation!Consumer Reports Reports: For example, at the liquidation, a 50-inch Panasonic plasma TV was discounted to $1,800, a $200 savings. That might sound like a bargain, but if you check the circular you'll see that Circuit City had planned to cut the price this week by $500. What's more, we found the same model online for $1,365, including free shipping. This is either massive genius, or complete incompetence, depending on how the liquidation goes. Bargain Hunting? Not So Much [Banker Gone Broke]
Source: Dealbreaker | 21 Jan 2009 | 9:34 pm The Treasury-Industrial ComplexThe bailout has plunged the federal government into relatively uncharted legal territory and, as a result, it has had to look outside its ranks for help. In particular, the Treasury Department has retained legal and accounting advisers to draw up contracts and monitor the disbursement of funds. I posted a table of the contracts signed by Hank Paulson. According to reports, this is but the tip of the contracting iceberg. Beyond the current Treasury solicitations, there will be a lot of work for the cleaning-up-the-mess business: an army of lobbyists, banking consultants and investors has come out of the woodwork to offer both public- and private-sector clients their specialized services. So far, it seems as though they are well positioned: as one report notes, the trend is "strategic hiring in, volume hiring out." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 21 Jan 2009 | 9:25 pm Energy Transfer Partners Raising Cash (ETP)
The net proceeds from this sale will be used to repay debt from its revolving credit facility, and the company expects to use some of the funds to finance capital expenditures and other growth projects. Joint book-runners in the deal are listed as Credit Suisse, Citi, Morgan Stanley, UBS, and Wachovia Capital Markets. Barclays Capital, Deutsche Bank Securities, Raymond James, and RBC Capital Markets are all listed as co-managers of the deal. The underwriters were given an option to purchase up to an additional 750,000 common units. Energy Transfer Partners L.P. closed up 0.6% at $35.11 today, but shares are down almost $1.00 in after-hours trading on worries about the added dilution. This would represent about $175 million in capital raised, and the company's market cap is roughly $5.3 billion.
Jon C. Ogg Source: 24/7 Wall St. | 21 Jan 2009 | 9:23 pm Bonus Watch '09: JPM, S&TStub: 7.5k Earlier: Comp Watch '09: JPM
Source: Dealbreaker | 21 Jan 2009 | 9:18 pm Billionaire's Times bet: Double or nothingLet's say that you are the world's richest man (give or take) and are looking for smart places to put some of your hard-earned coin in these tricky times. Clearly, there are no shortage of distressed or at least highly motivated businesses out there. And let's say that one of the candidates is the New York Times Company, whose woes along with the rest of the newspaper industry's have already cost you half of the roughly $120 million investment you put into it last fall as a common shareholder. You might be inclined to play it safe and take a pass a second time around -- but then you wouldn't be Carlos Slim Helu, would you?Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 9:02 pm Presented By:Source: Dealbreaker | 21 Jan 2009 | 8:41 pm The BAC Bargain BasementKen Lewis just bought 200,000 shares of BAC, we understand. It's up over 30% today already (but most financials are spiking today). Vote of confidence? Cheap way to telegraph a vote of confidence?
Source: Dealbreaker | 21 Jan 2009 | 8:41 pm Wilbur Ross Says `Good Bank/Bad Bank' Model Is Next for U.S.Source: Bloomberg - All Podcasts | 21 Jan 2009 | 8:32 pm SEC Probes Apple's Reports on Steve Jobs' Health (NewsFactor)NewsFactor - Apple's reporting on the health of CEO Steve Jobs will be the subject of an inquiry by the Securities and Exchange Commission, according to news reports.Source: Yahoo! News: Business | 21 Jan 2009 | 8:32 pm SEC Probes Apple's Reports on Steve Jobs' Health (NewsFactor)NewsFactor - Apple's reporting on the health of CEO Steve Jobs will be the subject of an inquiry by the Securities and Exchange Commission, according to news reports.Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 8:32 pm Dear Aspiring White Collar Criminal...Have you considered Sarasota, Florida? Culturally elegant and brimming with adventure, yet laid back and tranquil. This is a vacation destination like no other. Wrapped with 35 miles of silken beachfront, Sarasota is a package of rich cultural history, sun-drenched islands, natural treasures and unlimited discoveries. Come ... get to know Sarasota and Her Islands and see for yourself what makes this area so remarkable. You'll come for the white sands and breathtaking sunsets, but find there's so much more to discover in Sarasota and Her Islands when you go beyond the beaches. Family festivals and activities. Arts, music and film. Romantic, gourmet dinners. Golf, sailing and fishing. World-class shopping. Weddings full of wonder. Our lax attitude towards living mirrors our lax attitude to law enforcement. You will be pleased to know that our easy going law enforcement officials spend little time running down white collar crime. In many cases simply the expression of the desire to be left alone is enough to prompt our officers to pursue other, more rewarding opportunities. Police have already given up looking for our latest distinguished visitor, the now missing hedge fund manager Arthur Nadel as it is clear "he doesn't want to be found." Our inviting atmosphere and easy to live with regulatory environment, combined with a high concentration of high net worth individuals nearing the end of their intellectual and cerebral lives makes Sarasota an ideal place to relocate. Come find out for yourself that sunshine and shady characters go hand in hand! Nadel 'Doesn't Want To Be Found,' Sheriff Says [FinAlternatives]
Source: Dealbreaker | 21 Jan 2009 | 8:28 pm SEC looking into Apple over Jobs health disclosures: WSJ (AFP)
Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 8:23 pm Cowen Says Once Banks Are Nationalized, Privatization Is HardSource: Bloomberg - All Podcasts | 21 Jan 2009 | 8:11 pm Dear Team ToscaNot that we're not thrilled with your genius decision, but, without digging too deep, can we just ask, why the change of heart? Does it really appear as though we've figured out how to make this thing work, or did '09 just feel like your year to make some risky decisions, and unprotected sex with a junkie wasn't feasible at this time?
Source: Dealbreaker | 21 Jan 2009 | 8:10 pm More Fodder For The Ponzi Trifecta
The U.S. Securities and Exchange Commission on Wednesday charged missing fund manager Arthur Nadel with defrauding investors at six Florida-based hedge funds. The fact that this guy, at 76, has managed to put our 38 year old DB Cooper wannabe to shame (the last sign of Nadel was his green Suburu found in the airport parking lot- which makes me think he is driving to Mexico in another vehicle while police waste their time looking at ticket records) makes him the leading candidate for the Dealbreaker Ponzi Escape Award (sponsored by the Dealbreaker Guide: How To Properly Escape Capture Following Your Massive (or Relatively Massive) Financial Fraud. Part II is presently in development!) We are still deciding on a trophy design. Feel free to put your suggestions (as well as any nominees we may have overlooked) into comments. US SEC charges missing Florida fund manager [Reuters]
Source: Dealbreaker | 21 Jan 2009 | 8:06 pm Ponzi Trifecta: Activate!Bloomberg Reports: A former Texas bail bondsman who told investors he ran a $45 million hedge fund and installed a swimming pool at his office was sued by U.S. regulators for allegedly operating a Ponzi scheme. Ok, just stop for a second. Let's deconstruct this one using Equity Private's Guidebook for Financial Fraud Analysis (1st Edition). Purported Hedge Fund Manager (Section 2: Base score: -1): 1. Former (-1) Environmental Signs Of Affluence: 1. Swimming Pool at Office (No direct rule. Author likely did not anticipate such a development. Use Section 3.4 as a guide: Accoutrements of leisure in the place of business. Pool table: -2. Liquor cabinet: -4). (Use: -7) Hmmmm ok. Continue.... Rod Cameron Stringer of Lamesa misappropriated millions of dollars from investors since 2001 while touting a stock-trading strategy he said had annual profits of as much as 61 percent, the Securities and Exchange Commission said in a statement today, announcing the suit at federal court in Lubbock, Texas. Rates Of Return: Purported Annual Rate of Return: 61% (Section 7.5(a)-(d): Select from the following sliding scale where returns are claimed for more than one year) (Use: -14, see below) [...] 55%-59% (-12) [...] A judge froze the assets and appointed a receiver to recover investor funds, the agency said. The location of investor money "is presently unknown," the SEC said, noting some was used to finance a horse-racing partnership, buy a boat and build the pool at Stringer's office. Social Climbing Behavior: Socially Elevated Endeavors: (Section 15(g): Equestrian (Use: -5) Miscellaneous: Unusual Firm or Owner Name: (Section 36: Examples provided: Vortex Capital Management, LLC, Tornado Partners, LLP, Mr. Nemo, Mr. Incognito, Mr. Shade E. Figur: Use: -5) "Mr. Rod Stringer" (Use: -5) Total: -36 Section 52: Impact of Scores: -25 to -29: Very High Probability of Fraud (Consider notifying authorities outright).
Source: Dealbreaker | 21 Jan 2009 | 7:40 pm Olympics Get A Bailout, TooLike a lot of news about the global economy of late, this strikes me as just sad. The British government announced Wednesday that it will spend up to a quarter of its two billion pounds in contingency reserves ($2.7 billion) set aside for the 2012 London Olympics to bail out building projects because they cannot attract private sector funding. Construction of the Olympic village and the adjoining media center could have been delayed and even stopped because of the credit crunch and officials said the cash was needed to get them built in time for the opening ceremony. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 21 Jan 2009 | 7:36 pm Geithner pledges 'dramatic' actionThe Obama administration will take action on a "dramatic scale" to revive credit markets and strengthen banks so they are able to lend, Treasury secretary-designate Tim Geithner saidSource: Financial Times - US homepage | 21 Jan 2009 | 7:36 pm Petrou Sees Obama Facing `Serious Problem' of Bush PoliciesSource: Bloomberg - All Podcasts | 21 Jan 2009 | 7:36 pm Geithner calls for tougher bailout termsTreasury Secretary-designate Tim Geithner called for bold action to blunt the economic downturn and promised to tighten the terms for companies getting federal financial help.Source: Business and financial news - CNNMoney.com | 21 Jan 2009 | 7:34 pm Debate rises over Gaza aid distributionAid organizations estimate damage to Gaza from Israel's incursion could be $1.5 billion. Whatever aid comes in, there's disagreement among Palestinian groups over who should distribute it. Daniel Estrin reports.Source: Marketplace | 21 Jan 2009 | 6:27 pm Economic woes limit U.S. foreign policyPresident Obama's inauguration address focused a lot on the economy and foreign policy. But the U.S. economy may play a huge role in determining what can be done overseas. Kai Ryssdal speaks about foreign policy with Gideon Rose, managing editor of Foreign Affairs magazine.Source: Marketplace | 21 Jan 2009 | 6:26 pm Wage stagnation is the real problemWhile commentator David Frum doesn't think much of President Obama's plans to stimulate the economy, he says something needs to be done about workers' stagnating wages. He has a couple ideas how to do it with less government spending.Source: Marketplace | 21 Jan 2009 | 6:26 pm What is 'creative capitalism?'At 2008's World Economic Forum, Bill Gates challenged corporations to engage in 'creative capitalism,' or be more socially responsible. Kai Ryssdal speaks with journalist Michael Kinsley about what that entails.Source: Marketplace | 21 Jan 2009 | 6:10 pm Cities mull bailouts of car dealershipsSome cities that depend on sales taxes to fill their coffers are offering loans to help keep struggling car dealerships in business. Rico Gagliano reports.Source: Marketplace | 21 Jan 2009 | 6:10 pm Airlines pay for locking in fuel pricesJust about every U.S. airline is reporting losses, and a big reason why is that they locked in expensive fuel prices when those prices were at record highs last summer. Janet Babin reports.Source: Marketplace | 21 Jan 2009 | 6:10 pm Geithner questioned on taxes, bailoutsTreasury secretary nominee Timothy Geithner fielded tough questions from a Senate committee about mistakes on his tax returns and his part in crafting some of last year's biggest bailouts. Steve Henn reports.Source: Marketplace | 21 Jan 2009 | 6:10 pm Obama freezes pay, sets ethics rulesPresident Obama spent his first full day in office setting ethics guidelines and imposing a salary freeze on White House staffers earning more than $100,000. Kai Ryssdal speaks with John Dimsdale about the president's new policies and his upcoming agenda.Source: Marketplace | 21 Jan 2009 | 6:10 pm Apple faces SEC review over Jobs health disclosure: report (Reuters)
Source: Yahoo! News: Stock Markets News | 21 Jan 2009 | 6:04 pm Slumdwellers Sue Slumdog Millionaire Cast for Calling Them Names
Bollywood actor Anil Kapoor and music director A R Rahman have been sued in a Patna court for allegedly calling slum dwellers names in their award-winning movie, ‘Slumdog Millionaire’. One Tapeshwar Vishwakarma, general secretary of Slum Dwellers’ Joint Action Committee, on Tuesday filed a complaint case in the court of chief judicial magistrate Raghavendra Kumar Singh, charging the duo with defaming slum dwellers by calling them “slumdogs” and Indians “dogs” in the movie. They, thus, violated the slum dwellers’ rights to live a dignified life, the complaint said. Though the court has fixed February 5 as the next date of hearing, it has not taken cognizance in the case and, instead, asked the complainant to produce evidence in support of his allegations. Vishwakarma on Wednesday told TOI he has also approached the National Human Rights’ Commission for action against the two film personalities. He admitted he has not watched the movie. “But I have seen the movie’s promos on TV,” he said, adding he has named only Kapoor and Rahman because they are “better- known Indians associated with the movie.” Vishwakarma really should watch the movie before making his case. Source: Business Pundit | 21 Jan 2009 | 6:01 pm Geithner Confirmation HearingI just watched the last three hours of Timothy Geithner's confirmation hearing (whew) and it seems pretty clear he's going to sail through. There were some fun highlights, including some tense admonishments of Geithner from Sens. Wyden and Bunning. Here's a story I just wrote for NPR's website. We'll update it if anything else interesting happens as the hearing wraps up. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 21 Jan 2009 | 6:01 pm U.S. Bancorp Profits Down 65% in Q4
U.S. Bancorp, like many in its industry, has been slammed by profit losses.The St. Louis Business Journal reports: U.S. Bancorp, holding company for St. Louis’ largest bank, said Wednesday its profit fell 65 percent in the fourth quarter of 2008 compared to the same period a year earlier, primarily due to higher provisions for credit losses. Minneapolis-based U.S. Bancorp (NYSE: USB) reported net income of $330 million, or 15 cents per share, in fourth quarter 2008, compared to $942 million or 53 cents per share in the fourth quarter of 2007. The firm recorded $253 million in securities losses in the fourth quarter of 2008. U.S. Bancorp increased the provision for credit losses in the recent quarter by $1.04 billion compared to the prior year’s quarter, to nearly $1.27 billion, reflecting continued stress in the residential real estate market, the company said. U.S. Bancorp said its fourth-quarter revenue grew 1.4 percent to $3.6 billion on 22.6 percent higher net interest income while noninterest income decreased 19.2 percent as the slowing economy hit equity valuations and customer behavior, the company said. Source: Business Pundit | 21 Jan 2009 | 5:48 pm ReliaCard Visa Targets Unemployed People
Got unemployment insurance? You may want to load your monthly payments onto a Reliacard Visa, a prepaid, reloadable US Bank card through which the Department of Labor distributes insurance funds. Huliq has the details: The Reliacard functions as a debit card and can be used anywhere that Visa is accepted. Consumers receive their funds directly to the card and avoid most of the common credit card fees. There is little risk of over-extending yourself because the funds go only so far as the money that you’ve allocated, though in some cases a charge may slip through and a $20 fee will be given. As long as customers utilize U.S. Bank ATMs there are no fees for balance inquiries or cash withdrawals; and the monthly fee of $2 only applies if the account is left inactive for more than 180 consecutive days. Users cannot add additional funds to the account, as it is strictly for the depositing of unemployment insurance. Only the state can deposit funds to the Reliacard Visa. Also, in order to reduce fraud, U.S. Bank places daily limits on the amount of money that can be withdrawn from the card. If a consumer has to withdraw a large sum of money they will have to go straight to a bank teller. Funds within the account do not accrue interest. Also, more than one card cannot be requested even for close family members. Still, in an unstable economy and with unemployment topping 7.2 percent in December the Reliacard Visa may be an option worth exploring. How does the Reliacard visa beat getting unemployment funds deposited directly into your bank account? It doesn’t. But if you don’t have a bank account, and your state doesn’t offer a direct-deposit UI program, the ReliaCard system works well. Some more perks, from US Bank’s website: In other words, the ReliaCard Visa targets those with horrible credit, no bank account, and who receive unemployment insurance benefits. They should have called it the HardUp Visa. Source: Business Pundit | 21 Jan 2009 | 5:30 pm Atlantic Equities' Lewis Says Financials Dragging Market DownSource: Bloomberg - All Podcasts | 21 Jan 2009 | 4:59 pm Peanut Butter Recall Hits Dog Food
I hope everyone is staying away from peanut butter (even cookie dough and “all-natural” stuff have been affected). Apparently, they put up a peanut butter pet food recall too, for a certain brand of dog treat. I thought nuts were bad for dogs, but there it is. Forbes has the lowdown: The Food and Drug Administration has traced the outbreak to a Georgia plant owned by Peanut Corp. of America, which makes peanut butter and peanut paste and sells it to institutions and food companies. The outbreak may have contributed to the deaths of six people and sickened more than 470 others in 43 states. The government has advised consumers to avoid eating cookies, cakes, ice cream and other foods containing peanut butter until health officials learn more about the contamination. Peanut butter sold in jars to consumers is not included, officials said. The FDA has created a searchable list of recalled products and brands on the agency’s Web site. Among the recently recalled items that contain peanut butter: _ PetSmart Inc.: The pet supplies retailer, with 1,107 stores in the U.S. and Canada, recalled seven of its Grreat Choice Dog Biscuit products that contain peanut paste made by Peanut Corp. _ Grocer Meijer, which operates 181 stores in Michigan, Indiana, Illinois, Ohio and Kentucky: Meijer brand Cheese and Peanut Butter and Toasty Peanut Butter crackers, Peanut Butter and Jelly and Peanut Butter Cup ice cream. _ Kroger, the nation’s largest traditional grocery chain: Private Selection Peanut Butter Passion Ice Cream sold in stores named City Market, Fred Meyer, Fry’s, King Scoopers, QFC and Smith’s in 11 states, primarily in the West. The company said the ice cream was not sold in its namesake Kroger stores or any other retailers it operates. _ General Mills: two flavors of snack bars, LARABAR Peanut Butter Cookie and JamFrakas Peanut Butter Blisscrisp. _ Clif Bar & Co.: Some Clif branded bars, including some under Luna and Clif Mojo labels. _ Abbott Nutrition: ZonePerfect Chocolate Peanut Butter bars, ZonePerfect Peanut Toffee bars and NutriPals Peanut Butter Chocolate nutrition bars. The items are sold in the U.S., Mexico, New Zealand and Singapore. _Cub Foods: The grocer recalled several of its Cub Foods brand peanut butter cookies sold at stores in Minnesota and Iowa. _Evening Rise Bread Co.: The McCall, Idaho-based baking company recalled batches of peanut butter cookies and peanut butter bars Monday due to potential for salmonella contamination. _McKee Foods Corp.: The Collegedale, Tenn. maker of Little Debbies issued a voluntary recall of its peanut butter crackers because of possible contamination. _Hy-Vee Inc.: The Midwest supermarket chain of West Des Moines, Iowa issued a voluntary recall of a host of products containing peanut butter. _Perry’s Ice Cream Co.: The Akron, N.Y. company recalled a number of ice cream products including its own brands and several created and sold under the Wegmans grocery store brand. _South Bend Chocolate Co.: The Indiana company recalled some of its candies because of a possible link to the salmonella outbreak. _Ralcorp Frozen Bakery Products: The company, a division of St. Louis-based Ralcorp, recalled several brands of peanut butter cookies it sells through Wal-Mart stores. Pretty extensive. I’m staying away from peanut-anything for the time being. Source: Business Pundit | 21 Jan 2009 | 4:48 pm Eizenstat Says Banks Lending Again Will Be Key to RecoverySource: Bloomberg - All Podcasts | 21 Jan 2009 | 4:43 pm Strategist Derrick Says Market Forces Still Weigh on CurrenciesSource: Bloomberg - All Podcasts | 21 Jan 2009 | 4:29 pm Too Old To Lay OffBusiness Week has an article out this morning about age and layoffs. The article suggests that when it comes time to make hard decisions, companies may be thinking about more than "first-in, last-out" union rules: Jean Jackson, vice-president for workforce planning for Baystate Health, a 10,000-employee health-care system in western Massachusetts, points to seasoned nurses who can mentor younger recruits in the operating room. When Baystate laid off 55 staffers last November, only 20 were 55 or older (and the system has since hired back nearly half of all those it let go, finding new spots for them). Says Jackson: "Our ability to keep seasoned, longtime employees for longer periods of time will be critical for us." Is it really a "bad time to be young?" Floyd Norris of the New York Times seems to think so. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 21 Jan 2009 | 4:19 pm Chart: Inauguration DaysAnyone expected a stock market bounce from the inaguration of President Barack Obama -- and many apparently did -- instead got the shock of the largest Inauguration Day drop ever. The market fell more than 4 percent yesterday. But spikes or drops in the market on Inauguration Day are quite rare: only in 1933, when FDR delivered one of the most famous addresses in American history, did the Dow Jones Industrial Average register a significant change. One reason Inauguration Day is relatively unimportant in trading is that there are no surprises -- traders have already adjusted their portfolios to to fit the companies likely to be affected by the policies of the incoming administration. But what about Election Day, when the likely results may not be obvious beforehand? Does that deliver a bounce? You might think that there would be significant market shifts as traders find out who their president will be. However, the Dow Jones index shows relatively little change. Here are the charts for Inauguration and Election Day. If you want to play with historical Dow Jones returns, Yahoo! Finance has all the data. t.finance.yahoo.com/table.csv?s=%5EDJI&d=0&e=21&f=2009&g=d&a=9&b=1&c=1928&ignore=.csv">data.» E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 21 Jan 2009 | 3:32 pm Wal-Mart Cut to `Neutral' at Credit SuisseSource: Bloomberg - All Podcasts | 21 Jan 2009 | 3:05 pm It's All About The BanksOn the first full day for the new Obama administration, financial institutions are still leading the way down. From the New York Times: Obama has no quick fix for banks. Key quote after the jump. Calculated Risk runs the list of banks whose stocks got hammered Tuesday. From the BBC: UK to expand bank rescue plan/ Germany's shrinking economy/ IBM bucks gloom with rosy outlook The New York Times notes that Obama administration officials are considering a return to the original bailout plan of buying toxic assets from banks, but says that's unlikely because the assets are so complex that it's hard to create a market for them. Which brings the Times to idea number two: A second approach, which Mr. Paulson had already used in a second round of bailouts for Citigroup and Bank of America, is to "ring-fence" the bad assets by providing federal guarantees against losses, and separating the assets from the rest of a bank's balance sheet. The virtue of that approach is that it costs relatively little money up front, because the government is essentially providing insurance coverage. The danger is that the potential cost to taxpayers of federal guarantees can be even less transparent than other approaches. As a result, the final costs to taxpayers could be huge. Indeed, the guarantees would put the government in the same business that led to immense losses from mortgage-backed securities: credit-default swaps. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 21 Jan 2009 | 2:43 pm German Prisoner FedExes Himself Out of JailFrom Ananova:
An inmate escaped from jail in Germany by posting himself out of prison in a giant FedEx box of dirty laundry. Drug dealer Hans Lang, 42, hid in the laundry room after other inmates had finished work there and bundled himself up in dirty bed sheets in the large box. The package was then loaded onto a van and driven through the gates at the prison in Willich near Dusseldorf. He is understood to have waited until the driver made his next stop before getting out of the box, picking the lock on the back of the van and running off into nearby woods. FedEx: Keep your packages safe from everything, including the law. Source: Business Pundit | 21 Jan 2009 | 11:03 am
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