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Oil service giant Schlumberger sees more tough times aheadSchlumberger signals more tough times ahead for the hard-hit oil drilling sector on top of its 17% drop in fourth-quarter net income.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:58 pm Top Pre-Market Analyst Upgrades (BBT, EXPD, FLR, JEC, JCG, NOK, SIAL, VMED)
Jon C. Ogg Source: 24/7 Wall St. | 23 Jan 2009 | 12:55 pm GE earnings dim by 47%General Electric Co. on Friday reported a 47% decline in fourth-quarter earnings per share that was at the low end of its expectations, and lower revenue that was below analysts' forecasts.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 12:53 pm Potential nuclear sites are namedFour potential sites for new nuclear power stations are proposed as the government begins its process for choosing suitable locations.Source: BBC News | Business | World Edition | 23 Jan 2009 | 12:53 pm Indications: Futures point to weaker start U.S. as Xerox disappointsU.S. stock futures head sharply lower with markets apprehensive after losses in the previous session driven by job cuts from tech bellwether Microsoft, while heavy losses for Asia and Europe compound the gloom.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:53 pm Top Pre-Market Analyst Downgrades (ABH, AMFI, CME, LPX, MA, MSCC, NOK, V)These are some of the top downgrades and negative research calls we have seen from Wall Street analysts this Friday morning:
Jon C. Ogg Source: 24/7 Wall St. | 23 Jan 2009 | 12:52 pm EU gives boost to dairy exportsThe EU reintroduces export subsidies for dairy produce, saying the economic downturn threatens many European farms.Source: BBC News | Business | World Edition | 23 Jan 2009 | 12:45 pm London Markets: London's FTSE 100 declines as recession confirmedLondon’s top share index falls below the key 4,000 level for the first time since early December on Friday after GDP figures confirm that the country is in recession.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:44 pm UK in recession as economy slidesThe UK enters recession for the first time since the early 1990s, after the economy shrank by 1.5% in the last quarter of 2008.Source: BBC News | Business | World Edition | 23 Jan 2009 | 12:42 pm Stocks brace for a batteringU.S. stocks were expected to open significantly lower Friday as conglomerate General Electric reported lower fourth-quarter earnings, adding to concerns about corporate results.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 12:42 pm GE profit down 44 percent (Reuters)
Source: Yahoo! News: Business | 23 Jan 2009 | 12:41 pm GE profit down 44 percentBOSTON (Reuters) - General Electric Co reported a 44 percent drop in quarterly profit, meeting Wall Street's expectations, as the U.S. conglomerate and economic bellwether closed out one of the toughest years in its 117-year history.Source: Reuters: Business News | 23 Jan 2009 | 12:41 pm The Fed: Life after zeroThe Federal Reserve has a two-day meeting next week to discuss what to do with interest rates. That's two days more than the central bank needs.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 12:41 pm Wall Street headed for sharply lower opening (AP)
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 12:41 pm Toyota considers job cuts - sourceRead full story for latest details.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 12:40 pm Economic Report: GDP data show Britain in first recession since '91The British economy contracts sharply in the final three months of 2008, shrinking 1.5% compared to the previous quarter, the Office for National Statistics reports Friday.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:34 pm General Electric's profit falls 44% on global downturnGeneral Electric Co. says its fourth-quarter earnings fell 44% on heavy declines in its financial and consumer-products businesses due to the global economic downturn, but the conglomerate refrains from cutting its dividend.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:34 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:31 pm New NatWest bank charges rulingSome customers of the NatWest bank may have a new opportunity to reclaim their bank overdraft charges.Source: BBC News | Business | World Edition | 23 Jan 2009 | 12:27 pm Alistair Darling: bear with us, we need more time to beat recessionPM: it's not our fault | Sector-by-sector breakdown | Back in Recession Road | Daniel Finkelstein on the political impact | Poll: is your family in recession?Source: Latest Business News from Times Online | 23 Jan 2009 | 12:26 pm FTSE-100 down 46.73 at 4,005.50 (AP)AP - Share prices on the London Stock Exchange were lower at midday Friday.Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 12:26 pm Xerox quarterly profit falls on slack equipment salesNEW YORK (Reuters) - Xerox Corp , the leading provider of digital printers and document management services, said on Friday quarterly profit declined, hurt by restructuring costs and weak equipment sales.Source: Reuters: Business News | 23 Jan 2009 | 12:22 pm Bridgestone to cut 800 workers at Tennessee plantHONG KONG (MarketWatch) -- Bridgestone Corp. said Friday it will lay off about 800 workers at a tire plant in Tennessee as it phases out production of tires for cars and light tucks.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 12:22 pm Schlumberger profit dips, weakness aheadNEW YORK (Reuters) - Schlumberger Ltd , the world's largest oilfield services company, reported a drop in quarterly profit on Friday and warned it faced reduced spending by its oil and gas producing customers in 2009.Source: Reuters: Business News | 23 Jan 2009 | 12:20 pm Harley plans closures as profit tumblesCHICAGO (Reuters) - Harley-Davidson Inc said it would close plants and cut 1,100 jobs as a global pullback in consumer spending pushed the motorcycle maker's quarterly earnings down more than Wall Street had expected.Source: Reuters: Business News | 23 Jan 2009 | 12:14 pm 'Stock Talk' Technical Portfolio of the Day: MMM, CLWR, DHR, DYN, ADL, WIREVALLEY COTTAGE, N.Y., Jan. 23 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of...Source: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 12:02 pm Possible Toyota job cuts as auto crisis roilsMILAN (Reuters) - A warning of unprecedented staff cuts at Toyota, the world's biggest auto maker, and word of a possible first quarter loss by Volkswagen piled fresh pressure on struggling car manufacturers on Friday.Source: Reuters: Business News | 23 Jan 2009 | 12:00 pm 'Stock Talk' Technical Portfolio of the Day: OLN, PPG, HOT, STL, SUN, TGBVALLEY COTTAGE, N.Y., Jan. 23 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of...Source: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 12:00 pm Longaberger Unveils Made-in-America Pottery CollectionNew Product Reflects Company's Commitment to Investing in America NEWARK, Ohio, Jan. 23 /PRNewswire/ -- The Longaberger Company is launching a collection of...Source: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 12:00 pm William R. Hartman To Retire as Chief Executive Officer of Citizens Republic BancorpExecutive Vice President Cathleen H. Nash Named Successor Hartman to Remain Non-Executive Chairman FLINT, Mich., Jan. 23 /PRNewswire-FirstCall/ -- Citizens RepublicSource: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 12:00 pm GE (GE): It Would Be Hard To Be More Disappointing
GE posted numbers that were worse than expected. For the year, revenue was $183 billion, up 6%, and earnings were $18.1 billion, down 19%. For Q4 net income dropped 46% to $3.65 billion, $.35 a share, from $6.97 billion, or $.66 a share in the same quarter last year..The quarterly numbers included $1.5 billion of after-tax restructuring and other charges GE insists that it capital position will make it nearly certain that the company can keep its "AAA" rating. If its results worsen that still may not be true. GE's real trouble is that too many of its divisions fell apart at the same time last quarter. It largest division, technology infrastructure grew only 1% in both revenue and operating income. It capital & finance and commercial & industrial units each lost 17% of their revenue compared to the same quarter last year, Capital finance operating earnings dropped 67%. GE said 2009 would be "extremely difficult". Based on its Q4 results, that may be an understatement. It will keep its dividend, which some fears it would cut, but that is cold comfort. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 11:57 am Tribune on third base with Cubs saleRead full story for latest details.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 11:50 am World stocks slide (AFP)
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 11:46 am Pound hits 23-year dollar lowThe British pound on Friday struck a 23-year low point against the dollar and fell close to its all-time nadir versus the yen as Britain officially entered recession. Sterling dropped toSource: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 11:43 am WRAPUP 3-Qimonda, Samsung hit by chip market crash* Samsung posts first quarterly loss as chip, LCD sales hitSource: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 11:42 am Schlumberger 4Q down nearly 17 pctOilfield services provider Schlumberger Ltd. says its fourth-quarter earnings fell nearly 17 percent as the significant fall off in drilling and other activity by oil and gas companies hurtSource: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 11:41 am Currencies: British pound plummets as data show deeper U.K. recessionThe pound plunges to a 23-year low against the dollar, undermined as government data confirmed the U.K. economy fell into a deep and potentially long-lasting recession in the final three months of 2008.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 11:40 am Harley to cut 1,100 jobs as 4Q profit fallsHarley-Davidson Inc. says it will cut 1,100 jobs over two years and scale back its operations as its fourth-quarter profit slid amid the weak motorcycle market. Harley says it will...Source: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 11:39 am A-B InBev sells Tsingtao stake to AsahiAnheuser-Busch InBev has kicked off a series of anticipated disposals by selling its 19.99 per cent stake in China's Tsingtao Brewery to Japan's Asahi BreweriesSource: Financial Times - US homepage | 23 Jan 2009 | 11:39 am European markets fall as UK plunges into recession (AP)
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 11:38 am Fiat And Chrysler: The Hunter Loses It Way
A day after the two companies announced that they were in talks it became clear that its success would depend on more capital from the US government. Congress might ask Fiat to put up some of that money. It might look bad for America to finance an Italian firm's US-based enterprise. The rate at which the recession is spreading added another wrinkle to the Fiat/Chrysler deal. The acquirer now is low on money and may need a bailout from the Italian government. According to the FT, "Fiat yesterday painted a grim outlook for the automotive industry this year as it announced that it would not pay a dividend for 2008 and the Italian government said it would discuss possible state aid for the sector." While it may seem perverse, the combination of the two car companies may rely on bailout from two governments, but such transactions may become more commonplace. It is certainly not out of the question that GM (GM) might get capital from the Swedish government to keep Saab afloat. There are jobs at stake in the Scandinavian country. Canada has indicated that it will offer aid to the arms of US car companies that operate in that nation. The assembly plants that Detroit has in Canada employ too many people. Bailouts may be heading in the direction that would have multinational companies in trouble getting capital from several countries at a time. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 11:38 am RBS economists lambast Rogers 'doomsday' rantTwo of the City’s most respected economists at Royal Bank of Scotland (RBS), the part-nationalised UK bank, have hit back at the fund manager Jim Rogers for his claims that the UK economy is all washed up.Source: Latest Business News from Times Online | 23 Jan 2009 | 11:37 am CORRECTED - UPDATE 1-Schlumberger posts lower quarterly profit* Sees activity weakening across the board (Corrects analysts' forecasts to show miss)Source: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 11:35 am EADS denies it may pull out of A400M contractEADS on Friday denied reports it might pull out of its troubled A400M military transport plane program, saying it is rather looking to renegotiate parts of the contract. The European...Source: RSS feed - channel BNewsBusiness | 23 Jan 2009 | 11:33 am Spain's jobless rate hits 13.9%Spain's unemployment rate, which is the highest in the eurozone, reached 13.9% in the last three months of 2008.Source: BBC News | Business | World Edition | 23 Jan 2009 | 11:32 am Bank of England sees recession deepening this winter recession 1980Unemployment predicted to rise but inflation could drop below the present Treasury forecastSource: Latest Business News from Times Online | 23 Jan 2009 | 11:31 am UK economy shrinks 1.5% in final quarterBritain's economy declined rapidly at the end of last year, official figures showed, as gross domestic product contracted by 1.5 per cent in the fourth quarterSource: Financial Times - US homepage | 23 Jan 2009 | 11:31 am Spending a way out of recession an option no longer available recession 1980Unemployment figures leap to the highest figure since the 1930sSource: Latest Business News from Times Online | 23 Jan 2009 | 11:28 am Pfizer (PFE) And Wyeth (WYE): A Merger As A Way To Fire People
Pfizer (PFE) has already fired thousands of people. Most recently it cut 800 researchers and 2,400 sales personnel. The drug firm probably would have been more brutal if it could have been. Pfizer is now in merger negotiations with its one of its big pharm peers, Wyeth (WYE). The transaction would be done as a $60 billion buyout of Wyeth. According to The Wall Street Journal, "If completed, a deal could create billions in cost savings through the combination of back-office operations, research and development, sales and manufacturing." In the Pfizer deal not much is being said about the best strategic reasons for mergers which are that they should increase overall sales. Pfizer and Wyeth already have development teams working on drugs which may not even be tested for two or three years. Putting the two corporations together is not likely to make the combined operation grow faster. It is not like putting two search engine companies together because having more market share allows the new firm to raise prices as it delivers more customers than any of its competition. M&A has become a tool for fighting the recession. Putting Fiat with Chrysler together is an excuse for letting tens of thousand of people go. The same would be true with a Pfizer deal to pick up Wyeth.These mergers do more to destroy the overall economy than they do to create new products and services which might help restart demand from customers and haul the economy out of its hole. Mergers have become the tool of tearing the heart out of a recovery. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 11:22 am The U.K.'s GDP Shrinks The Most Since 1980Data released from the U.K. shows the economy there has not been in as bad shape since Margaret Thatcher was Prime Minister showing the recession is biting there harder than expected. Stocks in the U.K. tanked on the report, which underscores the growing political trouble facing the current Prime Minister Gordon Brown who has vowed to use "every weapon at our disposal" to fight the financial crisis. Good luck with that one. The economy has contracted the most since 1980. U.K. manufacturing confidence also has not been as week since the dawn of the Thatcher era. Last year, the economy had its lowest growth since 1992. "Service industries shrank by 1 percent on the quarter, manufacturing dropped 4.6 percent and construction fell 1.1 percent," Bloomberg said. "Business services and finance, accounting for 30 percent of the economy, contracted 0.5 percent and also slipped into a recession." Things are only going to get worse. The European Commission is forecasting that the U.K.'s economy will contract 2.8 percent this year, a figure not seen since 1946!. The recession in the U.K. will be long and painful. Americans can take comfort in knowing that the world feels their pain. Source: 24/7 Wall St. | 23 Jan 2009 | 11:19 am Sony loss-forecast stuns, triggers tech sell-offAsian shares close out the week sharply lower Friday, with miners under pressure in Sydney, while a stronger yen and skittishness towards tech stocks after Sony’s forecast of its first annual loss in 14 years sours the mood in Tokyo.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 11:14 am Tax cut: When will workers get it?Congress is racing to pass a giant bill to stimulate the economy. But a key piece of it may be a little slower in coming than many people expect.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 11:09 am Europe Markets: European shares fall to levels last seen in 2003European shares decline on Friday, with losses for oil producers and financials offsetting gains in the pharmaceutical sector.Source: MarketWatch.com - Top Stories | 23 Jan 2009 | 11:08 am Google (GOOG): It's The Current Quarter That Counts
The quarter just ended says almost nothing about what is about to happen to Google. Looking at the company's prospects for the next year or two, it is the first quarter of 2009 that counts. By most estimates, the economy moved into recession late in the summer or early in the fall. The slide started to accelerate before Thanksgiving and then GDP began to dive before Christmas. That means that Google probably had one or two months when sales were fairly good. The holiday e-commerce season may have bolstered its numbers by a modest amount in December. The recession is in full bloom now. The rules that applied for looking at business prospects late last year are much less useful today. Joblessness, which was just over 7% at the end of 2008 may be headed rapidly toward 9%. Corporate spending has been shut down and retail operations are fighting to stay alive. All of those things together will make Google's first quarter comparison to the same quarter last year much less likely to look good. Google's revenue is nearly a perfect mirror of the economy because it does business across every industry and has customers which range from individuals to large corporations. Its advertising search business is used by millions of "affiliate" sites that rely on putting Google's marketing software at their websites. The revenue from those Google ads is split between the site owner and the world's Google. When small sites loss traffic or go out of business, the number of partners Google can rely on shrinks. Even large companies are eliminating much of their marketing budgets. Google may be the single most efficient way to reach customers, but that does not mean much when firms have lost the financial capacity to do any advertising at all. Wall St. still takes some comfort in Google's ability to be the one marketing tool that businesses large and small cannot do without. But, the recession economy is all about doing without. Google's first quarter will be worse than most analysts imagine. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 11:00 am EADS denies mulling collapse of A400M project (Reuters)Reuters - European aerospace group EADS on Friday denied a report that it was preparing for a possible collapse of the 20 billion euro ($25.91 billion) A400M military aircraft program as it tries to renegotiate late delivery penalties.Source: Yahoo! News: Business | 23 Jan 2009 | 10:52 am EADS denies mulling collapse of A400M projectPARIS (Reuters) - European aerospace group EADS on Friday denied a report that it was preparing for a possible collapse of the 20 billion euro ($25.91 billion) A400M military aircraft program as it tries to renegotiate late delivery penalties.Source: Reuters: Business News | 23 Jan 2009 | 10:52 am Pfizer in talks to buy Wyeth for $60 billion: reportNEW YORK/LONDON (Reuters) - Pfizer Inc, the world's largest drugmaker by revenue, is in talks to acquire rival Wyeth in a deal that could be valued at more than $60 billion, according to the Wall Street Journal.Source: Reuters: Business News | 23 Jan 2009 | 10:43 am Why Earnings Don't Matter (IBM)(GOOG)(MSFT)
The fourth quarter earnings which are coming out now and the forecasts for next year are as useless as a boat in a drought. Google (GOOG) has a quarter which was better than expected. Because it is in a fast-growing segment of the internet, it would be reasonable to assume that its trajectory would continue up. Actually, there is just as much of a chance that the slowdown in advertising spending will damage Google's business. IBM (IBM) also reported extremely good earnings and said 2009 would be at least as good. Only one of its five major businesses would need to get into trouble for that forecast to come unglued. If sales in its hardware operation fall apart, its earnings forecasts could be off by a significant amount. All of those investors that looked at IBM as a good gamble would end up losing money. Microsoft (MSFT) said its last quarter was bad, and looking out over the next six months, its businesses will probably deteriorate further. With sharp personnel cuts and the sale of its video game operation, the fortunes at the world's largest software company could rapidly change and the stock could outperform the market. Of course, management may be stubborn and there may be no restructuring at all. In a failing and turbulent economy, looking at how a company may do over the course of this year requires more imagination than it does math skills. Earnings actually tell very little. They are a picture of the past. Most come out several weeks after a quarter ends. In a recession, that gap in time may make looking backwards a process which is nearly useless. Looking forward. nearly every public company in America is basing its guidance on conjecture more than predictable sales. That is why a growing number of companies are withdrawing forecasts all together. As terrible as it may seem, what management can say about what has just happened to their companies financially and what management says about what is about to happen, is hardly any guideline at all. Investors are left going with the best guess, which is probably as good as anyone else's. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 10:39 am German chip-maker goes bankruptThe German chip-maker Qimonda files for insolvency protection just a month after receiving a rescue package.Source: BBC News | Business | World Edition | 23 Jan 2009 | 10:29 am Mixed December for retail salesThe volume of UK retail sales rose by a surprise 1.6% in December, but extensive discounting brought down the value of sales.Source: BBC News | Business | World Edition | 23 Jan 2009 | 10:21 am British economy officially in recessionThe British economy is officially in a recession, according to GDP numbers released Friday.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 10:13 am Earnings and recession batter world stocks (Reuters)
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 10:09 am Earnings and recession batter world stocks (Reuters)
Source: Yahoo! News: Business | 23 Jan 2009 | 10:09 am Earnings and recession batter world stocksLONDON (Reuters) - The spread of economic gloom to company performance pulled equities sharply lower on Friday, driving European equities below last year's lows, while Britain's formal arrival in recession hit the pound again.Source: Reuters: Business News | 23 Jan 2009 | 10:09 am Pfizer in talks to buy Wyeth for $60 billion: report (Reuters)
Source: Yahoo! News: Business | 23 Jan 2009 | 9:57 am Brokerage to pay Lehman investorsA Hong Kong brokerage is to buy back some of the Lehman Brothers investments it sold that may now be worthless.Source: BBC News | Business | World Edition | 23 Jan 2009 | 9:52 am Pfizer in talks to acquire rival WyethThe move comes as the world's leading pharmaceuticals companies face a slowdown in growth as revenues come under threat from the expiry of patents, shrinking pipelines and increased generic competitionSource: Financial Times - US homepage | 23 Jan 2009 | 9:38 am Samsung posts first quarterly loss on weak chipsSEOUL (Reuters) - Samsung Electronics posted its first ever quarterly loss as its memory chip and display units buckled under the weight of diving prices, and the technology giant faces even more pain as global recession saps demand.Source: Reuters: Business News | 23 Jan 2009 | 9:34 am Samsung posts first quarterly loss on weak chips (Reuters)
Source: Yahoo! News: Business | 23 Jan 2009 | 9:34 am London shares up in early trade (AFP)
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 9:33 am Pfizer in talks to take over Wyeth - reportRead full story for latest details.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 9:01 am Media Digest 1/23/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that Pfizer (PFE) is in takeover talks with Wyeth (WYE), a deal that would be worth $60 billion. Reuters reports that a good bank/bad bank system would lead to nationalization. Reuters reports that the new Treasury Secretary designate believes that China has manipulated the Yuan. Reuters writes that Google (GOOG) beat earnings estimates. Reuters reports that Toyota (TM) is considering large layoffs. Reuters writes that Thain was pushed out of Bank of America (BAC). Reuters reports that Ichan called for corporate governance reform. Reuters reports that the mobile phone market will shrink this year. Reuters writes that Citi will lose some veteran board members. The Wall Street Journal reports that the Fed will focus on rates and loans. The Wall Street Journal reports that Microsoft (MSFT) will cut 5,000 jobs. The Wall Street Journal writes that some banks are dying to fast for regulators to keep up. The Wall Street Journal reports that a number of companies are lobbying for TARP funds. The Wall Street Journal reports that the House approved billions of dollars to upgrade internet access. The Wall Street Journal writes that troubles are mounting for Chrysler and Fiat. The Wall Street Journal Nokia (NOK) posted poor sales on weak handset demand. The Wall Street Journal reports that at Merrill the focus has turned back to survival. The Wall Street Journal reports that Capitol One posted a loss and said it was in for worse. The Wall Street Journal said home construction slowed at a record pace. The Wall Street Journal writes that dilution is no solution for Barclay's (BCS). The Wall Street Journal reports that The New York Times (NYT) is near a deal to sell part of its building. The Wall Street Journal reports that Lockheed was bullish on strong results. The Wall Street Journal reports that Disney (DIS) will merge ABC and its studios. The Wall Street Journal writes that Starbucks (SBUX) CEO will not take a bonus. The Wall Street Journal reports that Verizon's (VZ) new web phone will target home users. The Wall Street Journal reports that the net fell at UnitedHealth (UNH). The Wall Street Journal reports that Southwest (LUV) posted a loss. The New York Times reports that China is spending billions of dollars on infrastructure in part to keep joblessness down. The New York Times reports that smaller banks will start to merge with larger ones. The FT reports that Google (GOOG) will rewrite the terms of its stock options. The FT reports that the extent and timing of the US stimulus plan are being questioned. Bloomerg reports that US companies are cutting dividend at the fastest rate in 50 years. Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 8:54 am John Lewis sales rise 4% on electricals demandSales at John Lewis, the retail bellwether of high street sentiment, rose by 4 per cent last week, amid continuing demand for high definition televisions, cameras and computers.Source: Latest Business News from Times Online | 23 Jan 2009 | 8:51 am Marston's moves to help landlordsPub and brewing company Marston's has said it is absorbing the rising cost of lager to protect its outlets as they battled a "difficult" market.Source: BBC News | Business | World Edition | 23 Jan 2009 | 8:47 am Asia Markets And Europe Open 1/23/2009
The Nikke fell 3.8% to 7,745. THe Hang Seng was of ..4% to 12,603. The Shanghia Compoite dropped .7% t0 1,991. In Europe, at the open, the FTSE was down .3% to 4,014. The Dax was down .4% to 4,203. Data from Reuters and MarketWatch Douglas A. McIntyre Source: 24/7 Wall St. | 23 Jan 2009 | 8:22 am US allows use of embryonic stem cellsUS regulators have approved the first use of embryonic stem cells in humansSource: Financial Times - US homepage | 23 Jan 2009 | 8:13 am Univision, Televisa settle high-stakes lawsuitUnivision, the dominant Spanish-language broadcaster in the U.S., makes concessions to ensure it continues to have exclusive access to Televisa's telenovelas. ...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am 2010 Ford Mustang GT: Embracing the spirit of changeIf Ford can reform a chintzy, gimpy, flubbery, moronic mess that was the Mustang, anything is possible. What interests...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am Migrant factory workers at a loss as China's economy slumpsWith factories closing amid a plunge in orders, the crush of jobless workers raises the specter of more social turmoil and conflicts over land and farming rights. ...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am ABC combines TV network, production unitsThe cost-cutting move follows in the footsteps of NBC. Layoffs could begin as soon as next week. ABC on Thursday...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am Ex-Merrill chief leaves Bank of AmericaJohn Thain resigns after helping engineer the sale of Merrill Lynch to BofA. Thain apparently lost the confidence of the bank's top executive during the transition. ...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am The BlackBerry accord of 2009Obama makes a deal with his security team that will let him keep his electronic link to the outside world. OMG!...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am 'Benjamin Button's' Oscar nominations may not pay off for ParamountAlthough more ticket sales are likely, the high costs of making, marketing and distributing the film mean that it could struggle to make much of a profit. ...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am Obama staff has low-tech move-in day at White HouseTech-savvy officials and aides face unfamiliar territory including outdated computer software and curbs on outside e-mail accounts. ...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am Stocks drop on Microsoft, bank woesThe Dow ends off 105 after plunging 271. Gloomy economic data add to worries over bad corporate news. Stocks fell...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am Critics protest closure of homeThe Motion Picture & TV Fund s decision to close the actors care facility was made in a vacuum, they say. ...Source: RSS feed - channel BNPaperBusiness | 23 Jan 2009 | 8:00 am Lower car sales hit Nippon SteelThe world's second largest steel firm, Nippon Steel, slashes production as demand from carmakers tumbles.Source: BBC News | Business | World Edition | 23 Jan 2009 | 7:50 am Aussie stocks: Market closes over 4pc downMELBOURNE - The Australian share market closed down by just over four cent to a near five-year low as bank and resource stocks were weighted down by continuing concern about the health of the global economy. At the 1615 AEDT close,...Source: New Zealand Herald - Business | 23 Jan 2009 | 7:24 am Currency: Dollar ends week on firmer toneThe New Zealand dollar ended a volatile week's trading with a firm performance. By 5pm it was buying US52.86c from US52.90c yesterday, having ranged during the night between about US53.40c and US52.20c. It has been a big week...Source: New Zealand Herald - Business | 23 Jan 2009 | 7:19 am NZ stocks: Shares slip but not as far as othersTelecom continued to outperform the market today on good volume but there were not many other bright spots as markets around the world fell. The benchmark NZSX-50 index closed down 29.325 points, or 1.072 per cent, at 2705.086....Source: New Zealand Herald - Business | 23 Jan 2009 | 6:58 am Warning: Rough Road Ahead (Deal of the Day)TWO STOCKS THAT HAVE BEEN IDENTIFIED as winners from Barack Obama's election victory are Martin Marietta Materials and Vulcan Materials . That's because Obama's plan to increase federal spending to improve decaying infrastructure could result in increased demand for their products -- the gravel, crushed rock, sand and other "construction aggregates" used to build highways. Vulcan Materials (VMC), of Birmingham Ala., and Martin Marietta Materials (MLM), based in Raleigh, N.C., are the country's No. 1 and No. 2 providers of construction aggregates, with market shares of 8% and 6%. Yet the investment community may be overestimating the benefits of stepped-up infrastructure spending -- and underestimating the negative impact of the sharp decline in residential and commercial real-estate construction. Highway and other public-construction projects account for about half the companies' revenue. Residential and commercial building comprise most of the rest. Meanwhile, the volatile shares of both Martin Marietta and Vulcan look richly priced -- especially in light of the weak home- and commercial-building outlooks. Martin Marietta, at 88, trades for about 20 times projected 2008 profits of $4.37 a share, and 20 times estimated 2009 earnings of $4.23 . At 58, Vulcan is even pricier, fetching 30 times projected '08 earnings of $1.94 a share and a similar multiple of projected '09 profit of $1.91. Over the next year, Martin Marietta could fall into the low 70s, while Vulcan could drop into the low 40s, especially if profits disappoint. Vulcan now has a stock-market value of $6.4 billion, and Martin Marietta, $3.7 billion. UBS analyst Timna Tanners recently downgraded Martin Marietta to Sell from Neutral, writing in a client note that "investor expectations about infrastructure stimulus are too heady and will be disappointed." She also has a Sell rating on Vulcan. House Democrats last week proposed an $825 billion stimulus program for the next two years that includes $30 billion for highways and bridges. Aggregates companies could get about 10% of that money. However, part of this federal initiative probably will be offset by reduced appropriations from financially strapped states. Tanners wrote that "the scope of the stimulus is broadening, and early estimates on roads appear disappointing." Her view: Bridges, which are less aggregates-intensive, could get more attention because of safety issues. Current conditions aren't good. Martin Marietta management recently met with investors and projected a tough first half of 2009. THE BULL CASE IS THAT WHILE THERE MAY BE weak demand until late 2009, the long-term outlook is excellent, owing to growing domestic demand. The pair has plentiful raw-material reserves, with Martin Marietta holding more than 60 years' worth, and Vulcan more than 40 years' worth, based on current production levels. Martin Marietta and Vulcan have enjoyed strong pricing power in recent years, due in part to their moves to buy up smaller rivals. The modest combined national-market share of the twosome understates their pricing power: Aggregates markets are highly localized, because transportation costs are high relative to the low prices fetched by aggregate materials -- on average, about $10 a ton. It's usually not economical to haul aggregates more than 50 miles. Martin Marietta has been able to lift prices for the past 10 quarters, despite weaker sales volumes. This is a rarity among commodity producers -- and part of the bull case. The view is that if the companies can raise prices in this environment, just think what they can do when business improves. In the third quarter, Martin Marietta boosted aggregates prices 7.8%, despite a 12% drop in volume, while Vulcan lifted prices 5.6% despite a 20% decline in organic volumes, which exclude acquisitions. But the companies' pricing power could wane in 2009 as commercial and residential-construction demand decline further. Vulcan's third-quarter pricing increase was its lowest quarterly rise since 2005. "The only reason that these companies are holding their high valuations is pricing," a bearish investor tells Barron's. "If pricing gets questioned, these stocks are going to get valued like cyclicals and trade lower." The bullish argument also rests on a rebound in 2010 profits, with Vulcan's earnings potentially topping $3 a share, versus a current $2. That could prove optimistic, considering the terrible conditions in commercial construction. Both outfits have sizable exposure to the Southeast, where the economy is getting crushed. Vulcan has big operations in Florida and California, two hard-hit states. Both companies seem unlikely to repeat their 2007 earnings anytime soon; that year, Martin Marietta posted profit of $6.05 a share and Vulcan, $4.54 a share. Part of the bull case is the companies' attraction as acquisition targets for big cement makers such as Europe's HeidelbergCement or Mexico's Cemex. But those two debt-burdened giants now seem more like asset sellers. It's understandable that Wall Street has gotten excited about Martin Marietta and Vulcan on infrastructure-spending hopes. The stocks, however, look expensive, because the Street is ignoring the risks from declining real-estate construction. Investors may be in for a rocky ride.
The Bottom Line
SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 23 Jan 2009 | 5:00 am A Guide to the Digital TV Conversion (Deal of the Day)With the transition to digital television less than a month away, it’s time to make sure your set is, well, set. On Feb. 17, all major TV stations will cease transmitting programs in analog format, and broadcast only in digital. Many consumers who bought a TV after mid-2007 or subscribe to cable or satellite service, won't skip a beat when the conversion occurs, says Michael Gartenberg, vice president for market researcher Jupiter Media. However, households that rely exclusively on free over-the-air TV signals -- an estimated 19.4 million, according to the National Association of Broadcasters -- may find themselves staring at a blank screen come mid-February. The only way for this group to prepare for the switch is to buy a new television, get cable or satellite service, start watching TV online or buy a converter box (see below for tips on all these options). To help consumers make the digital leap, the government is offering each household up to two vouchers worth $40 each (click here to request one) toward a converter box. Here's the bad news: If you haven't already applied for a coupon you won’t receive it in time for the transition, says Linda Yun, a spokeswoman for the National Association of Broadcasters. The National Telecommunications & Information Administration, the government agency overseeing the program, ran out of money to distribute the coupons in early January. Now there's a waiting list of more than 2.5 million requests. So if you haven't requested a voucher yet, you’ll either need to let your set go dark until Congress comes up with more funding and works through the backlog, or forgo the coupon and pay full price for the box. Fearful that millions of households won't be prepared in time, some members of Congress are pushing to delay the conversion until June. President Obama’s transition team also called for the delay earlier this month, predicting that six million more coupon requests could flood in before February and further delay mailings from the cash-strapped government program. Nevertheless, the conversion will happen at some point. If you're one of the holdouts here's what you need to know. Install a converter box. Set-top converter boxes, which retail for $40 to $80 at most major electronics stores, switch over-the-air digital signals into analog. One box is needed for each TV. If you opt for a converter box, you may also need a new antenna. Most digital transmissions use UHF signals, while analog primarily uses VHF, explains Yun. Even if your current antenna picks up both, digital signals may require a stronger model or different antenna placement in your home. “They’re more susceptible to blockage from things like hills or buildings,” she says. Prices for antennas start at $15. Sign up for satellite or cable TV service. Pursue this option and you won't need a converter box or a new television set. However, you will get stuck with what could be a pricey bill each month. (The average consumer pays about $41 a month for cable or satellite service, according to the U.S. Census Bureau.) Ask about special deals for new subscribers transitioning from over-the-air transmission. Comcast (CMCSA) is offering consumers a choice of limited basic cable for $10 a month for the first year (regularly $12.15), or free basic cable for a year when bundled with Internet or home phone service. Buy a new TV. Take your pick -- all TV models on store shelves contain a digital tuner to pick up the new signals. (But like those going the converter box route, you may also need a new antenna to continue receiving over-the-air signals.) Prices on new sets typically fall before and just after the Super Bowl (this year, the game is on Feb. 1), so start browsing the sales now (see box below). Don't forget to hang on to your receipt to claim a price adjustment should the price of your newly-purchased set dip further after you get it home. Watch on your computer. Can't afford to shell out any cash for the conversion? If you have a high-speed Internet connection, you can watch broadcast TV content online. With the networks’ blessing (and often, partnership), sites like Hulu, Fancast, TV.com and Joost post full-length episodes of select prime-time shows like “Dexter,” “Lost” and “Ugly Betty” a day or two after they air. For those who must watch in real time, consider a TV tuner card, says Gartenberg. These kits include an adaptor that plugs into your USB drive, as well as an antenna for picking up the broadcast signal. Some even include a TV remote and video recording capability. Prices run from $50 to $100. Here are some of the current deals available to shoppers*
Best Buy (BBY)
Sears (SHLD)
Sony (SNE)
Target (TGT) * Data from retailers. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 23 Jan 2009 | 5:00 am Computing on the Cheap: Buying a 'Netbook' (Deal of the Day)Don't look now but the Lilliputian laptop, a.k.a. the netbook, is making a play for your computing affections. Faster and more powerful than a smartphone, these runts are especially useful for basic computing tasks like e-mailing, web surfing and note taking on the go. Hoping to shave off a share of the roughly $32 billion laptop market, manufacturers like Hewlett-Packard (HPQ), Asus and Acer are shrinking both the portables (average 7 to 10 inches in width, under 2.5 pounds) and their price tags ($300 to $600). Makers have even taken a page from cellphones' success, designing netbooks as fashion accessories, complete with custom colors and decorative details. Last fall models carried HP's peony-inspired Vivienne Tam edition on a New York runway as a "digital clutch." Of course, anyone who remembers Bill Gates predicting tablet PC domination back in 2001 knows that even tech visionaries have stumbled badly on the road to mini-computing nirvana. (Many tablets didn't even survive to a second generation.) While analysts project that the weak economy will likely spur sales of these low-priced laptop alternatives, forecasting growth of 74 percent this year, actual sales data is slim (netbooks were introduced just over a year ago), and computer-tech companies like Intel (INTC) and Advanced Micro Devices (AMD) are already questioning their long-term market potential. Will these pint-size portables catch on, even with their cramped keyboards, shorter battery life and disk-drive deficit? We spoke with experts and consumers and test-drove a handful ourselves. Sizing It UpOn first glance, many netbooks look like something straight out of Toys "R" Us: machines for munchkins. But for anyone who's borne the weight of a bulky 15-inch, 6-pound portable through a daily commute -- or a grueling business trip -- the appeal of cutting a computer's size and weight almost in half is obvious. Netbooks don't hog space in your bag. They don't overhang the airplane seat-back tray. They may even save on chiropractor bills. But being diminutive has its drawbacks. Keyboards on many models run 20 percent smaller than standard laptop ones -- often tough for users with big hands or chunky fingers. Larger keys like "shift" and "return" are sometimes shrunk to a third their usual size; others get relocated on the board. (Hello, spell-check!) And the smaller screens require significant scrolling on dinky track pads, like the one on Acer's Aspire One. ("It's a design area we're hoping to improve," says an Acer spokesperson.) Indeed, consumers we spoke with reported mild netbook maladies like wrist cramps and finger fatigue. What You Can Do With It...When they first came out, netbooks had a reputation for being good for Web browsing -- and not much else. They lacked basics like hard disks and decent storage, and many ran only the Linux operating system, a geek favorite. These days models pack in more consumer-friendly goodies common to larger laptops: things like Windows XP, Microsoft Office and built-in Bluetooth wireless. Kent Russell, a Ph.D. candidate at Kansas State University, uses a 10-inch Asus 1000 for writing his dissertation, and he likes the built-in webcam for videoconferencing; his fiancee takes her Asus Eee 901 everywhere, wirelessly checking restaurant reviews, booking trips and making free web calls to China via Skype. But if you're a gamer -- or just addicted to watching episodes of "The Office" on your laptop -- netbooks probably don't pack enough punch, since they lack DVD drives, and screen resolution is decent at best, squinty at worst. We had no problem downloading iTunes or streaming media content from the web, but still, it limited our entertainment options. ...And for How LongThat's not to say they're a bust, entertainment-wise. With a strong web signal and enough juice, you can while away that airport layover with a few episodes of your favorite show. Trouble is, the typical netbook still runs about half the life of a regular laptop. And running video seriously sucks the battery, while wireless usage can accelerate the drain by as much as 35 percent. So much for that Steve Carell marathon. Most companies say they're working to turbocharge their mini machines. Some tout more energy-efficient designs like LED screens and "advanced thermal engineering" features. HP says that, come 2009, it'll amp up battery life on its Mini 1000 from three to six hours, while Asus promises nearly seven hours with some models. Experts say to take battery-life estimates with a grain of salt. But hey, shorter times are probably easier on those fingers. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 23 Jan 2009 | 5:00 am Nathans Finance directors appear in courtNathans Finance director John Hotchin and two of his co-directors have appeared in the Auckland District Court this morning on criminal charges relating to the failed finance company. Hotchin - the brother of Hanover Finance founder...Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 am Chrysler unveils deep discountsChrysler LLC, which suffered a 30% drop in sales last year, announced a massive new incentive program to move vehicles off dealers' lots.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 3:29 am Google to rewrite stock option termsThe search group's new options plan for its employees reawakens a debate over pay practices that proved controversial during the last technology downturnSource: Financial Times - US homepage | 23 Jan 2009 | 2:03 am Google profit beats on strong ad salesNEW YORK (Reuters) - Google Inc's quarterly earnings beat Wall Street forecasts as strong advertising sales on its self-branded websites helped the Internet leader defy the gloom pervading the tech sector.Source: Reuters: Business News | 23 Jan 2009 | 2:02 am When your deadbeat client won't payExpert tips for picking clients wisely and getting paid on time.Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 1:06 am BofA axes Thain as Merrill deal soursJohn Thain was ousted from Bank of America, just three weeks after closing the sale of Merrill Lynch to BofA, plunging the company into crisis and raising new questions about the government's efforts to save the banking industrySource: Financial Times - US homepage | 23 Jan 2009 | 1:01 am Schapiro approved as new SEC chairman (Reuters)
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 12:56 am Trends & Innovations - ThursdayCleaner air boosts life expectancySource: Investor's Business Daily: BUSINESS | 23 Jan 2009 | 12:54 am Bridges to buildReviving America's economy: The tax cuts and extra spending planned by the Obama administration are seen as worthwhile but the extent and timing of the effects are in questionSource: Financial Times - US homepage | 23 Jan 2009 | 12:29 am After The Close - ThursdayNETSCOUT (NTCT), a maker of network management software, lifted Q3 EPS 59% to 27 cents ex items, beating views by 3 cents. Sales gained 23.5% to...Source: Investor's Business Daily: BUSINESS | 23 Jan 2009 | 12:20 am Business Briefs - ThursdayFifth Third plunges on steep loss. The regional bank tumbled 29% to 2.85 after it swung to a Q4 loss of $2.06 a share ex items, much worse than...Source: Investor's Business Daily: BUSINESS | 23 Jan 2009 | 12:11 am Real Estate Software Now Minds The ShopCorporations are starting to embrace an emerging type of property-handling software that saves money by improving how they look after their office...Source: Investor's Business Daily: BUSINESS | 23 Jan 2009 | 12:11 am In Brief - ThursdayInterwoven (IWOV), a data management firm, agreed to be bought by British software maker Autonomy for $755 mil, or 16.20 a share. Shares rose...Source: Investor's Business Daily: BUSINESS | 23 Jan 2009 | 12:11 am Nerves Over Iran, North Korea Boost Defense SupplierAt American defense giant Raytheon, they must love the law of unintended consequences.Source: Investor's Business Daily: BUSINESS | 23 Jan 2009 | 12:11 am Veteran Citi directors to go in board shake-upCitigroup is to revamp its board with the departure of long-standing members Kenneth Derr and Franklin Thomas following criticism of its ability to supervise the troubled company's executives and strategy, people close to the situation have saidSource: Financial Times - US homepage | 23 Jan 2009 | 12:05 am Need to know: UK Coal strong... Dyson patents win... LG net loss...View video and Need to Know interactive heatmapSource: Latest Business News from Times Online | 23 Jan 2009 | 12:00 am BA risks angering cabin crew with 1% pay riseBritish Airways may be on course for renewed conflict once more with its 14,000-strong cabin crew after the chief executive of the airline hinted that pay increases for this year would be less than 1 per cent.Source: Latest Business News from Times Online | 23 Jan 2009 | 12:00 am Will a call go out for a bonus recall at BT?A series of highly complex, hard to value deals have proved much less profitable than first claimed, it emerged yesterday. Further problems with collateralised debt obligations for one of the banks? No. A body blow for poor old BT.Source: Latest Business News from Times Online | 23 Jan 2009 | 12:00 am Sony warns of first operating loss in 14 years at Tokyo briefingSony predicted its first operating loss in 14 years yesterday. Japan's electronics giant said it expected operating losses of about 260 billion yen (£2 billion) by the end of the financial year on March 31, against previous forecasts of Y200 billion profit.Source: Latest Business News from Times Online | 23 Jan 2009 | 12:00 am Cash drains away at Fiat amid refinancing rumoursA chill swept through the motor industry yesterday as Fiat slashed its forecasts and scrapped its dividend in the face of plummeting sales and a sudden draining of cash at the end of the year.Source: Latest Business News from Times Online | 23 Jan 2009 | 12:00 am GM's Dodgy AccountingIf General Motors CEO Rick Wagoner thought Congress had raked him over the coals for having used a private jet to solicit a public handout, wait until he comes back for more help in March.Federal regulators today accused GM of fudging its books earlier this decade, using several accounting tricks to inflate its pretax earnings by hundreds of millions of dollars—$680 million in 2002 alone. That's not going to assuage those members of Congress who were skeptical or openly hostile when GM and its peers came hat in hand to Capitol Hill just last month, seeking billions in financial aid to help them avoid a potentially fatal liquidity crisis. In a 32-page complaint filed Thusday in federal court in Washington, the Securities and Exchange Commission accused GM of having made significant misstatements or omissions about its pension accounting estimates in 2002. At the time, the popping of the tech-telecom bubble in the stock market was deflating the value of the assets GM had set aside to meet it pension obligations. As a result, the company faced the prospect of having to stump up $9 billion to $12 billion in cash to prop up the pension. Instead, according to the SEC, the automaker found another way to address the shortfall: it simply changed its assumptions about expected future earnings on those investments. It was then evasive about what it had done when questioned by analysts. "GM's disclosures were misleading," the SEC said in its complaint. The SEC also accused GM of making "material misstatements" about a $100 million bonus it received for signing a railroad shipping contract, a $97 million transaction involving the sale and repurchase of precious metals, and a pair of derivatives contracts. GM settled all the charges by agreeing to abide by securities laws in the future. The company, which received a $13.4 billion bailout from the federal government last month, did not admit or deny guilt, nor was it ordered to pay a fine. It will, however, have to face the wrath of Congress in March.Related Links Is Hedge Fund Synonymous With Ponzi Scheme? Screaming Booyah! at the SEC It's a Mad, Mad, Mad, Madoff World Source: Portfolio.com: Top 5 | 23 Jan 2009 | 12:00 am Latin American stocks fall (AP)AP - Latin America's major stock markets fell Thursday, tracking U.S. equities on news of contracting earnings and job cuts at Microsoft Corp.Source: Yahoo! News: Stock Markets News | 22 Jan 2009 | 11:53 pm VIX Index of U.S. Stock Option Prices Advances 1.9% to 47.29Source: Bloomberg - All Podcasts | 22 Jan 2009 | 11:50 pm Chapin Hill's Boyle Takes Long and Double-Long ETF PositionsSource: Bloomberg - All Podcasts | 22 Jan 2009 | 11:47 pm UK may inject $13.8 billion into Northern Rock: report (Reuters)
Source: Yahoo! News: Business | 22 Jan 2009 | 11:38 pm Harvey Pitt Says U.S. Hasn't Hit Economic Bottom YetSource: Bloomberg - All Podcasts | 22 Jan 2009 | 11:24 pm Scorecard for the major stock market indexes (AP)
Source: Yahoo! News: Stock Markets News | 22 Jan 2009 | 11:09 pm Scorecard for the major stock market indexes (AP)
Source: Yahoo! News: Business | 22 Jan 2009 | 11:09 pm Kiwibank cuts mortgage rate to five-year lowKiwibank has cut its one-year fixed rate to 5.99 per cent, the lowest one-year rate it has offered since August 2003. Kiwibank has also reduced all other fixed home loan rates with its six-month rate at 6.49 per cent and all other...Source: New Zealand Herald - Business | 22 Jan 2009 | 11:00 pm Pimco's Clarida Sees More Bank Regulation Under ObamaSource: Bloomberg - All Podcasts | 22 Jan 2009 | 10:45 pm Schein's Bergman Sees Better Health Care Access Under ObamaSource: Bloomberg - All Podcasts | 22 Jan 2009 | 10:42 pm NZ Shares: Local shares slip earlyThe New Zealand sharemarket slipped in early trading as stocks in the United States gave up some of their gains from the previous day. Telecom was down 3c early to $2.48 on continuing good demand after rising 4c yesterday. Among...Source: New Zealand Herald - Business | 22 Jan 2009 | 10:35 pm Oracle thinks big at NZ baseLarry Ellison's BMW Oracle team is poised to move its main boat building operations from Washington to Warkworth and plans to set up a high-tech hub with the potential to design composite materials used in aeroplanes, wind turbines...Source: New Zealand Herald - Business | 22 Jan 2009 | 10:30 pm Write-Offs: 01.22.09$$$ Cuomo Scrutinizes Merrill Lynch Bonuses [Deal Journal] $$$ Buffett Hints at Buyback of Berkshire Shares [Dealbook] $$$ Meredith Whitney: America's banks need to sell "crown jewels." [FT] 
Source: Dealbreaker | 22 Jan 2009 | 10:29 pm Stocks drop on Microsoft and data but Google up late (Reuters)
Source: Yahoo! News: Stock Markets News | 22 Jan 2009 | 10:27 pm Small-cap managers see good bets in energy stocks (AP)
Source: Yahoo! News: Business | 22 Jan 2009 | 10:21 pm Microsoft axing 5,000 jobsSEATTLE - Microsoft says it will cut 5,000 jobs over the next 18 months - more than 5 per cent of its work force - a sign of how badly even the biggest and richest companies are being stung by the recession. The layoffs appear...Source: New Zealand Herald - Business | 22 Jan 2009 | 10:00 pm Balazs Says New Standard Hotel Escaped Credit CrisisSource: Bloomberg - All Podcasts | 22 Jan 2009 | 9:53 pm Not Guilty!
Pilot pleads not guilty in plane crash death hoax [CNN]
Source: Dealbreaker | 22 Jan 2009 | 9:33 pm Support builds for Korea free trade dealGovernment is asking for submissions from the public on whether New Zealand should start trying for a free trade deal with South Korea. Trade Minister Tim Groser today called for submissions but said he was confident there would...Source: New Zealand Herald - Business | 22 Jan 2009 | 9:30 pm US says China 'manipulating' renminbiTim Geithner, President Barack Obama's choice for Treasury secretary, accused China of "manipulating" its currency and pledged "aggressive" diplomatic action to drive Beijing into actionSource: Financial Times - US homepage | 22 Jan 2009 | 9:28 pm Indicator: No WaitingToday's Planet Money indicator is 9. That's the percentage rate of growth in the Chinese economy last year, down from 13 percent in 2007. Nine percent may sound like boom times, but you have to remember two things: First, the Chinese population is large and poor and needs every new job it can get. Second, by some estimates, every percentage-point drop in China means 2 million jobs lost. The real-world indicator of this comes from James Hervold, who works in Beijing. He writes: I'll note the recession is hitting us here too. My company had moved into a new building shortly after it was built in May -- we were the 2nd office on our floor to move in. After some months, by the end of summer, it became quite frustrating to use the elevators -- we are on the 9th floor and routinely used the stairs to exit the building. By November, enough offices had closed down and moved out that this was/is no longer a problem. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 9:26 pm Historian Sugrue Says Grim Realities Still Face Black AmericansSource: Bloomberg - All Podcasts | 22 Jan 2009 | 9:09 pm Santander fund praised 'impeccable' MadoffA fund controlled by Santander, one of Europe's biggest banks, heaped praise on Bernard Madoff weeks before his arrest for an alleged $50bn fraud, calling his market timing "impeccable" in a report to investors that lawyers say raises questions about the bank's risk controlsSource: Financial Times - US homepage | 22 Jan 2009 | 9:06 pm Making A Pizza ManWife tells unemployed husband to get job delivering Domino's. The bright side? Minus cable and dinners out, the family members actually sit around reading and talking to each other. (Thanks, @jsboian.) » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 9:01 pm ErrataAs many of you have pointed out, the JP Morgan chart we posted earlier was entirely divorced from even a remote understanding of geometry. We have undertaken to correct the "off by one dimension" error, but owning to time constraints, we are only able to bring you the correction for Citigroup.
Source: Dealbreaker | 22 Jan 2009 | 9:00 pm John Drinnan : Say goodbye to topless weather girlsTV3 morning show presenter Oliver Driver and his ALT TV partners are walking away from the grungey music channel. TV sources say that while the tiny Sky pay channel has struggled financially ALT TV should survive and also be shown...Source: New Zealand Herald - Business | 22 Jan 2009 | 9:00 pm And 35k Commodes For All!From: ML COMMS GROUP ALERT
Source: Dealbreaker | 22 Jan 2009 | 8:57 pm BAC Shareholders Still Miffed Over Unwittingly Acquiring Asbestos CompanyAnd here's what they're doing about it! Related: Angelo Mozilo More Or Less Suggests Bank Of America Stock Up On Lube
Source: Dealbreaker | 22 Jan 2009 | 8:15 pm BloatedI think RBS is my favorite.
Source: Dealbreaker | 22 Jan 2009 | 7:46 pm Run Forest, Run!
The US Securities and Exchange Commission on Wednesday accused Arthur Nadel, a missing Florida-based hedge fund manager, of falsely overstating by about $300m the value of investments in six funds he advised.
Source: Dealbreaker | 22 Jan 2009 | 7:36 pm Presented By: Biltmore Who's Who Selects Patty S. Smith as an Honored Member of the Prestigious Executive and Professional Registry
Source: Dealbreaker | 22 Jan 2009 | 7:36 pm 25 Most Promising Green BusinessesGoing green was big news for a while, then the collapsing economy put a cloud over the movement. Nonetheless, a derth of reporting doesn’t mean that the scientists, entrepreneurs, and business brains behind the burgeoning industry have slowed down. If anything, their products are growing in maturity and potential. We waded through hundreds of eco-oriented companies to pick out the ones with the most promise, in terms of product potential and marketability. 25. Bionic Power Inc.
Bionic Power Inc.’s Biomechanical Energy Harvester uses the energy your body creates during the process of walking to charge portable batteries. The device, which after development should weigh about two pounds, is geared towards people need easy, cheap portable power. Importing disposable batteries costs heavily in terms of fuel for transportation. Target markets include the military, public safety officials, first responders, and others who need charged batteries during blackouts. Bonus: Wearers can charge their cellphones on it at night. 24. Feelgoodz
Feelgoodz manufactures eco-friendly shoes using hemp, bamboo, natural rubber, and recycled paper. 3% of its profits go to charitable causes, including the Fair Trade and 1% For the Planet. Their comfortable flip-flops are all-natural and 100% biodegradable. The flip-flops could be huge if they gain an international market. 23. DEKA: The Slingshot
Better known as the inventor of the Segway, Dean Kamen is now manufacturing the Slingshot, a filterless water purifier that makes drinking water out of sketchy water sources like sewage, ocean water, and urine. It runs off of cow dung and generates enough electricity to run a building full of light bulbs. Hoping to instigate a phenomenon, Kamen is handing units to impoverished villages. The handy device costs the rest of us $1,000-$2,000. 22. WhiteWave Foods
Dairy food specialist WhiteWave Foods produces natural foods while offsetting 100% of its electricity with renewable power purchases. The company works with both human sustainability, in which soy and organics may play a big role, and industrial sustainability. Their flagship brands include the popular Silk (soy products), Land O Lakes, and Horizon organic dairy products. The company is recognized for its green power use by the Environmental Protection Agency (EPA). 21. Ice Energy
Ever lived in a city that has rolling blackouts during the summer? Energy glutton air conditioners are a main reason for peak electricity issues. Ice Energy has a solution that lets you keep cool in summer and save energy. Their Ice Bear cooling unit, which plugs into air conditioners, makes ice at night, when electricity is off-peak. During the day, the Ice Bear cools the air conditioner’s coolant (usually cooled with electricity) using ice, cutting electricity consumption by as much as 30%. So far, the company only sells to businesses, but look for it residentially soon. 20. Ascent Solar Technologies
Ascent Solar manufactures solar cells using a highly efficient technology called CIGS. It already produces solar modules that are incorporated into building materials and portable electronic devices. The company has plans to power satellites and other space devices with its technology. Its technology does not use silicon, so it is immune to the silicon shortages that strike the rest of the industry. Ascent has its eye on subsidized markets like Japan and Europe. 19. Adura Technologies
Commercial buildings spend roughly 1/3 of their operating budgets on energy. Adura pegged building operators’ pain by offering a solution that increases a space’s energy efficiency with minimal retrofitting, new switches, or reconstruction. With Adura’s technology, you can use the same switch to turn off the lights in one part of a room while turning them on in another part. These “advanced lighting controls” run off a wireless system that saves up to 70% on electricity use. This efficiency made easy has stirred up quite a bit of customer interest. 18. GPA
17. Waterfurnace
Indiana-based Waterfurnace manufactures and installs geothermal heating and air-conditioning systems. The system uses an underground loop to either suck in or siphon out heat from buildings. The system’s pump, compressor, and fan require little energy to operate, are easy to maintain, and don’t break easily. The company employs a just-in-time manufacturing system to keep prices competitive, making it an increasingly attractive alternative to the usual energy hog furnace and A/C setups. 16. Solix
15. Imara
Imara produces long-lasting, eco-friendly lithium-ion batteries. Traditional nickel-cadmium batteries cause cancer, while lead-acid batteries poison landfills when they’re not recycled properly. Lithium-ion batteries, which you may know from your laptop and cell phone, last far longer than the other two types of battery, and are easier to reuse in manufacturing once drained. Imara’s batteries run longer than the competition. They are also powerful enough to use in a broad variety of markets. Unlike most other batteries, which are manufactured in Asia, Imara batteries are made in California, giving them a leg up in the energy independence movement. 14. Integrity Block
Integrity Block, based in Silicon Valley, manufactures a soil composite-based building block with the same strength, load bearing capacity and price as a standard concrete block. It takes 40% less energy to make Integrity Block than it does concrete; the stuff also contains 50% pre-recycled material. The company markets its block to builders interested in using green, sustainable, eco-friendly materials to get LEED credits. So far, people are biting. 13. Cool Earth Solar
Cool Earth Solar circumvents traditional solar panels by producing balloons that harvest solar energy. This divergent technology puts the company at a potential advantage: Traditional rooftop solar panels don’t put out enough electric power for high-population urban areas. Cool Earth’s balloon technology delivers gigawatts of bang for its buck, using cost-efficient materials and far fewer building resources than panels. It can meet demand quickly and without subsidization. Not bad, for a balloon. 12. Ecology Coatings
Ecology Coatings sells UV-curable nanotechnology coatings for paper, plastic, and metal products. It’s not a glamorous business, but the concept is essential. Most product protective coatings—almost every manufactured product has one—use solvents or carriers that aren’t safe or environmentally friendly when mixed and applied to products. Ecology Coatings came up with an eco-friendly solution by marketing its Liquid Nanotechnology coating. The inexpensive coatings cure under a UV light, allowing for clean mass production without the environmental risk. 11. Makani
Makani Power, still in stealth mode, uses patented “membrane structures” to harness high-altitude wind power. Think of its product as a gigantic, eco-functional kite. The kite gets launched several miles into the air and captures high-altitude winds, which are more dependable than winds closer to the ground. Not surprisingly, the company is staffed by a fair number of kitesurfers. Google has invested $11 million into Makani. 10. Altra Biofuels
Altra Biofuels finds, buys, and develops biodiesel and ethanol energy technologies throughout the United States. Once the technology is sound, Altra puts it into production, making it master of several promising technologies, and putting it in a position to become a big energy company if and when its types of fuels become a national standard. 9. Guardian Industries
Guardian Industries is known for its home- and auto glass products. More recently, they starting producing vacuum glass, a specially-designed glass that insulates as well as an average home wall. The glass’s insulating properties come from a vacuum area between two panes that stops convection, conduction, and radiation in its tracks. Guardian has taken this simple window science to the next level by making its windows cheaper, thinner, and lighter. As a result, the windows are more marketable to builders. These windows fit in well not only with Obama’s weatherization campaign, but with a greener future in general. 8. Organic Valley
7. Coskata
Coskata procures ethanol from landfill waste by processing waste gas in bacteria-based bioreactor. Their method is incredibly energy-efficient, using half the water of corn ethanol production as well as cutting CO2 emissions by 84%. The company’s patented bacteria can produce ethanol from plant waste, garbage, feedstock, and old tires for half of what it costs to make gasoline. If ethanol stays in the green-energy game, Coskata could make a killing. 6. Eaton Corporation
Electric hybrid vehicles are well and good until you try applying the technology to the big boys. By big, we mean delivery trucks, garbage trucks, and other rigs. At that size, it just isn’t as efficient as it is on, say, a Toyota sedan. Instead, hydraulic power holds promise for these types of vehicles. Eaton Corporation manufactures hydraulic hybrid trucks that UPS, FedEx, and Waste Management are currently testing. Hydraulic hybrids use energy from their brake systems 45% more efficiently than what electric hybrids can capture from their batteries. Eaton has also made electric hybrid systems for trucks and buses in the US and China, positioning it well to become a market leader. 5. Zipcar
Zipcar enables city dwellers to reserve a car online, walk up to a car lot, get in using a credit card, and drive around—with insurance and gas covered—for $11/hour. Customers get all the perks of owning a car, without the hassle. A $50/year membership gets you access to cars in 50 cities. The company is targeting cities and college campuses to catalyze ongoing growth. Offerings include everything from 5-series BMWs to SUVs to tiny compacts–something for everyone. 4. GreatPoint Energy
“Clean coal” is something of an oxymoron. But Cambridge, Mass.-based GreatPoint Energy has figured out how to make this tricky concept work. It uses catalytic gasification technology to transform coal into natural gas. The company claims that once its plants are operational, it will be able to produce natural gas from coal at below-market prices. It can also capture and sell the carbon dioxide, mercury, and sulfur emitted during the process. GreatPoint is clean, green, and with serious potential. 3. Tesla Motors
PayPal cofounder Elon Musk is on a roll with his latest venture. Tesla Motors designs an all-electric roadster that goes from 0 to 60 in 4 seconds, and zips around at up to a governed 125 miles per hour. The car only costs $0.02/mile to power, but its price tag is in the hundreds of thousands. Nonetheless, the eco-hip rich of Silicon Valley and Los Angeles have snapped up the roadsters like hotcakes. Tesla’s next car, the Model S, is slated to be released in 2010. Its comparatively modest $60,000 price tag puts it up against luxury sedans like the Audi A6. Tesla also has successful divisions that sell battery packs, powertrains, and solar chargers. 2. Calera
California-based Calera specializes in carbon capture and storage. In lay terms, that means diverting carbon dioxide emissions from factory smokestacks and running them through calcium- and magnesium-rich seawater to create cement. The CO2 gets turned into carbonates, making cement instead of polluting the atmosphere. Calera wants to replace Portland cement—120+ million metric tons of which the US uses in roads, sidewalks, and buildings a year—with its more eco-friendly product. If allowed to piggyback on coal and natural gas plants in the United States, Calera could do some major carbon cleaning cum cement production. 1. Vestas
Vestas, aptly headquartered in Denmark, is the biggest manufacturer of wind turbines in the world. Vestas’ specialty lies in planning, installing, maintaining, and servicing windmills. Government purchases of turbines continue to boost the company’s growth. It expects turbine sales to top $9.2 billion this year. The numbers can only get higher. Source: Business Pundit | 22 Jan 2009 | 7:26 pm Chinese Tainted Milk Leaders Face Death Penalty
The United States tends to let white-collar criminals off easy. China is just the opposite: Two men have been sentenced to death by a Chinese court after being convicted of playing a key role in a tainted milk scandal that led to six children dying and 300,000 falling ill. The two men facing execution include Zhang Yujun, who was convicted of making and selling more than 600 tonnes of “protein powder” laced with melamine, the industrial chemical responsible for the health crisis. He was found guilty of endangering public safety. The second convict was not named by court officials on Thursday. The former boss of bankrupt dairy giant Sanlu, one of the main firms at the centre of last year’s scandal, was jailed for life in a series of verdicts handed down by a court in Shijiazhuang, the capital of the central Hebei province. Tian Wenhua was convicted of producing and selling fake or substandard products, charges to which she had pleaded guilty. Killing babies is certainly more serious than tax evasion, but you have to wonder how these folks would have made out if this had happened in the US. Longish sentences, but definitely no death penalty… Source: Business Pundit | 22 Jan 2009 | 7:16 pm A Microsoft Layoff Checks In
New York City, 1929 Hulton Archive/Getty Images
I don't know about your e-mail, but my inbox is becoming a nest for messages like his. He writes: Hello everyone: Microsoft has just laid off 1400 full-time employees today, plus a huge number of freelance workers like myself. So as of today i am no longer a worker bee for MSDN and Technet magazines...and thus i am available for any freelance design, writing, editing, ditch-digging or the mucking out of stables. No job too small! All referrals cheerfully considered! Anybody want to buy an apple? » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 22 Jan 2009 | 7:13 pm Toll Brothers Offers 3.99% Fixed Mortgage Rate
How does a 3.5% down payment on a house with a 3.99% fixed-rate mortgage sound? This kind of thing was unheard of a year ago, but now East Coast builder Toll Brothers is offering buyers a tintillating deal. The Wall Street Journal’s Dawn Wotapka reports: Horsham, Penn.-based Toll this week started offering a 3.99% fixed mortgage rate for loans $417,000 or below for 30 years with no points, one of — if not the — industry’s lowest rates, one well below the national average of just below 5%. It’s too early to say if other builders will copy the attention-grabbing rate, but as the market worsens, competition is fierce and this move could launch a scramble to match the rate. Several builders have said traffic has ticked up as interest rates fall. For the week ended Jan. 15, the 30-year fixed-rate mortgage slipped to an average 4.96% with an average 0.7 point, according to Freddie Mac. The rate, which has fallen for 11 consecutive weeks, is the lowest since Freddie Mac began its survey in 1971. While lower interest rates — and the smaller monthly payments that result — could lure some buyers off the sidelines, builders still have to contend with competition from bargain-priced foreclosures, buyers’ fear of falling prices and the rising unemployment rate. The unemployed, and those worried about their jobs, are simply unlikely to purchase. Source: Business Pundit | 22 Jan 2009 | 6:53 pm GVA's Garrity Sees Growth for Apple's IPhone OverseasSource: Bloomberg - All Podcasts | 22 Jan 2009 | 6:46 pm RBC's Cassidy Recommends Buying Bank Stocks in 2009Source: Bloomberg - All Podcasts | 22 Jan 2009 | 6:39 pm UBS Chief Economist Harris Sees House Prices Falling 10%Source: Bloomberg - All Podcasts | 22 Jan 2009 | 6:37 pm 2009 Fortune 100 Best Companies to Work For: The List is Out
Every year, Fortune Magazine reveals the Fortune 100 Best Companies to Work For list. The list is now out for 2009. Check out the full list here. We listed the Top 10 below: 1. NetApp Guess what? #9 still gives performance bonuses (although they are lower than pre-2008 levels). Meanwhile, Edward Jones “had no exposure to high-risk mortgages or financial derivatives and no plans for layoffs.” Amazing. You’d think financial services was still healthy, seeing the Top 10. Is your company on the list? Source: Business Pundit | 22 Jan 2009 | 6:37 pm WSJ Breaking: GM Agreed to Settle with the SEC Over a Probe Related to Accounting ViolationsHonestly, is no one immune?
Source: Dealbreaker | 22 Jan 2009 | 6:35 pm The Sectera Edge: The World’s Most Secure Blackberry
PC World reports speculation the President Barack Obama is getting an ultra-secure Sectera Edge–basically, a Blackberry pimped out to NASA standards–as his mobile communication device: The Sectera Edge is a smartphone made by a defense contractor called General Dynamics. The device, according to General Dynamics, was actually developed for the National Security Agency (NSA) and is considered a “secure mobile environment portable electronic device.” the thing uses an alphabet soup of secure protocols to make sure all communications are encrypted and safe from would-be spies. The Sectera Edge uses SCIP, or Secure Communications Interoperability Protocol, along with HAIPE IS — High Assurance Internet Protocol Encryptor Interoperability Specification (try saying that three times fast) — to create connections with classified government networks. Its feature list even includes the specific option to “exchange secure e-mail with government personnel.” The Sectera Edge offers all the standard stuff — calendar, tasks, desktop synchronization. Oh, and it even meets military standards for drop and shock protection. The Sectera operates on a Microsoft Windows platform. And both AT&T and T-Mobile offer secure voice and data service for the device. Its pricetag? $3,350. This president is a real trendsetter. I wouldn’t be surprised if the Sectera gets picked up as the new cool by well-off early adopters. Source: Business Pundit | 22 Jan 2009 | 6:25 pm Condoleezza Rice Signs with William Morris AgencyReuters reports on how Condoleezza Rice just signed on as a client of the William Morris Agency: Former Secretary of State Condoleezza Rice has made a key step in her post-Bush administration career: The William Morris Agency announced Wednesday that it has signed her as a client. “It was certainly a competitive situation,” said Jim Wiatt, chairman and CEO of the William Morris Agency. “She was very thorough about the process and who she would feel most comfortable with and who would be speaking on her behalf.” It’s unlikely that Rice will turn up as a talking head on television, however. The deal includes William Morris representation for books, lecture appearances and philanthropic initiatives, as well as business initiatives in media, sports and communications. WMA co-chief operating officer Wayne Kabak said that the agency was struck not only by Rice’s well-rounded resume. In addition to her political career, Rice is an accomplished concert pianist as well as a big-time National Football League fan. “It’s more than just books, it’s much more than just lectures,” Kaback said. “We’re here to help her create and enhance an agenda that is very important to her in her post-government career.” The William Morris Agency is a talent agency that has been around for more than 100 years. It represents high-end clients such as Russell Crow, Quentin Tarantino, Clint Eastwood, Willie Nelson, Coca-Cola, Starbucks…let’s just say it’s one of the agencies you want representing you as a famous person. Condi’s post-Bush career might just stand out more than her career during the past 8 years. I really want to see her commentating NFL games. Source: Business Pundit | 22 Jan 2009 | 6:15 pm Corporate defaults on the riseThe number of companies filing for bankruptcy is expected to rise. Kai Ryssdal speaks with Standard & Poor's Diane Vazza about why so many companies are having trouble staying afloat and what it means for the economy.Source: Marketplace | 22 Jan 2009 | 6:12 pm Stimulus could energize green firmsCongress is considering a stimulus plan that will set aside $25 billion for energy efficiency projects. That money could go a long way to helping firms that have been quietly pushing energy efficiency for years. Deborah Wong reports.Source: Marketplace | 22 Jan 2009 | 6:03 pm Fixing our schools in a weak economyHigh on President Obama's agenda is reforming our nation's schools. Kai Ryssdal speaks with author Susan Eaton about the problems with our schools and what can be done to fix them in our economic state.Source: Marketplace | 22 Jan 2009 | 6:03 pm Bad economy keeps lobbyists anxiousWith so much federal money up for grabs, one might think Washington's lobbying industry would be preparing for a bonanza. But, economic woes even have people on K Street feeling anxious. Steve Henn reports.Source: Marketplace | 22 Jan 2009 | 6:03 pm Dollar in better shape than U.K. poundThe U.K. pound continues to decrease in value as its banking system weakens. But with U.S. banks also suffering, why is the dollar doing better than the pound? Stephen Beard reports.Source: Marketplace | 22 Jan 2009 | 6:03 pm The ripple effect of layoffsCompany layoffs keep piling up. With so many people out of work, it can have a huge ripple effect. Sadie Babits has the story of one man who is dealing with the effects of unemployment in Portland, Ore.Source: Marketplace | 22 Jan 2009 | 6:03 pm Companies report serious case of bluesFallout from the financial crisis is spreading to the bluest of blue chip companies. Some of the world's biggest companies are reporting huge losses and layoffs. John Dimsdale reports.Source: Marketplace | 22 Jan 2009 | 6:03 pm IBM CEO: Raises, Bonuses AheadAs layoffs continue at IBM, a Planet Money listener and IBM worker forwards this letter sent by CEO Sam Palmisano on Tuesday. An IBM spokesperson confirms that it's from Palmisano. Full text after the jump. The letter reads, in part: I am pleased to announce that we will not only be paying bonuses to IBMers worldwide, based on individual performance, but that they'll be funded from a pool of money nearly the same size as last year's. That's significant in this economy -- and especially so, given the size of the 2007 pool. Further, our salary increase plan will continue, covering about 60 percent of our workforce. As always, increases will go to our highest performers and contributors. We should all feel good about the company's ability to invest in people in these very concrete ways. The IBM spokesperson won't says how many layoffs are coming: "We are not communicating that information." Full text of Palmisano's letter: Dear IBMer: We have just issued our financial results for the fourth quarter and full year 2008. You can read them on w3. Under extremely challenging economic circumstances, we had a strong fourth quarter and a great 2008. I want to thank you for everything you have done to help achieve this impressive performance. Our 2008 results set several records: record revenue of $103.6 billion -- the first time IBM has passed the $100 billion mark; record pre-tax earnings of $16.7 billion, up 15 percent from 2007; record earnings per share of $8.93; and record free cash flow of $14.3 billion. These results are testament to superior execution by almost 400,000 IBMers and to the strategic transformation of our company over the past several years -- our shift to higher-value businesses, our investment in growth markets, our integrated solutions that address clients' needs and our improved efficiency -- all of which generate higher profit margins. With our strong financial position, solid recurring revenue, profit streams and global reach, we are confident about 2009 and are well positioned to achieve our 2010 earnings-per-share goals. We entered this difficult environment strong, and we expect to exit it stronger. In the fourth quarter we had particularly strong contributions from our services and software businesses and from growth markets. Our two Global Services segments together delivered pre-tax profit growth of 32 percent and margin growth of 4 points on lower revenues compared to 2007. We signed 24 deals larger than $100 million -- the highest we've seen in quite some time. Software revenue was up 9 percent at constant currency, driven by growth in mission-critical production software. And although growth in emerging markets has slowed, it continues to be very attractive relative to the rest of the world. These markets comprised 18 percent of IBM's geographic revenue in the quarter and the year. As always, some parts of the business did not perform as well. Systems & Technology revenue declined 16 percent at constant currency this quarter with shortfalls in our x86 and storage products offsetting gains in high-end servers. In part, this was due to clients being focused on reducing the cost of running their existing IT infrastructure. But it also reflected execution issues that we must acknowledge and address. The current global economy clearly presents a challenge. But even more, for those with vision and boldness, it represents a once-in-a-lifetime opportunity. And it is one uniquely suited to IBM's capabilities, legacy and way of thinking. Those capabilities and that thinking have taken new form in our Smarter Planet strategy. It is resonating with people and businesses around the world who are ready and eager for fundamental change. It has already captured the interest of numerous governments actively planning to stimulate their economies. They are looking not just to repair what's broken, but to prepare for a new century. More than $2 trillion in proposed investments have been announced to transform national infrastructures. If we hadn't already been developing the Smarter Planet strategy -- which is in many ways the culmination of everything we have done over the past decade in technology, business and global integration -- we would probably be creating something very much like it right now, in order to capture this enormous opportunity. I will discuss Smarter Planet, our results for the quarter and the full year and our plans for 2009 in my broadcast on w3 tomorrow. I urge you to listen in. Let me close with a word about IBM's basic approach to the complex, difficult and exciting era in which we find ourselves. As we know, many companies today are curtailing or drastically cutting spending and investment, even in areas that are important to their future. We are taking a different approach, not only because we have the financial strength to do so, but because we choose to manage IBM for long-term success. Of course, we must continue to improve our competitiveness, drive productivity, replenish skills and eliminate redundancies where they exist. At the same time, we will continue to invest -- in R&D, strategic acquisitions, growth initiatives and in taking our Smarter Planet initiative to the world. Most importantly, we will invest in our people through our continued support for learning and skill development, through programs like the Global Citizen's Portfolio and through competitive salary and incentive programs. In that connection, I am pleased to announce that we will not only be paying bonuses to IBMers worldwide, based on individual performance, but that they'll be funded from a pool of money nearly the same size as last year's. That's significant in this economy -- and especially so, given the size of the 2007 pool. Further, our salary increase plan will continue, covering about 60 percent of our workforce. As always, increases will go to our highest performers and contributors. We should all feel good about the company's ability to invest in people in these very concrete ways. We stand at a unique moment in the course of modern history, and in the nearly 100-year story of IBM. More than at any time since I joined the company 35 years ago, I see the chance to align those two trajectories in powerful ways. I hope and trust that you share my sense of this moment. I believe it is a call for greatness, and I believe IBMers are ready to answer that call. This promises to be an exciting and important year. Sam Palmisano Chairman, President and Chief Executive Officer » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 5:52 pm Universities Prep For CutsUniversities around the country are bracing for massive cuts as states rethink their shrinking budgets. In preparation for expected budget cuts, many are asking their staffs to look for any way to save money. School officials say cutting a university budget is complicated by factors like tenure, which make it harder to lay people off. Seth sends us this letter from the chancellor of University of Illinois at Chicago: While we still have no official guidance from State government, the president has asked all three campuses, plus the central administration, to prepare for a potential State budget rescission of up to 10 percent during this fiscal year. The deans and vice chancellors had already been advised of this prospect, and were asked to develop contingency plans to prepare for it. In addition, the deans and vice chancellors were asked to: --Limit hiring only to those positions where the vacancy would have significant, adverse impact on campus operations. --Delay all non-essential expenditures, paying special attention to travel and entertainment. --Increase their financial oversight to avoid any unplanned deficit spending. The measures outlined above and the contingency plans under development will enable us to mitigate the impact on our academic programs and services. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 5:20 pm Presented Without CommentPublishing BAC research analysts, who were guaranteed their bonuses last year after the debacle in February of 2008, were informed that their bonuses would be paid entirely in restricted stock, with no cash component.
Source: Dealbreaker | 22 Jan 2009 | 5:20 pm BlackBerry Execs Fined $100MCorporate scandals involving back-dating stock options just keep living on. Word is two top executives of Research In Motion Ltd., the Canadian maker of the ubiquitous BlackBerry, may pay dearly for their role in a stock option accounting controversy dating back over a decade. The Ontario Securities Commission is seeking a record penalty -- one that reportedly could be as high as $100-million -- from the top two executives for their role in backdating more than 40 percent of stock options granted to employees since 1996. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 4:58 pm Got A Question For The 'Masters of the Universe'?Tomorrow, I'll be in Philadelphia at the Wharton Private Equity Conference. I'd like to invite you to post or e-mail questions or issues you would like me to cover while I'm there. If you're wondering what private equity is, click on the jump. "Equity" refers to a stake in a particular company; in return for their investment, holders receive partial ownership in the form of a stock. These investors get to vote on corporate policies and elect members of the board -- their influence is proportional to the percentage of the company they own. Let's look at public equity first. Most stock investments that appear in the news refer to public equity, which you and I can buy and sell on exchanges such as NASDAQ or the New York Stock Exchange. Companies that have shares traded on these markets are known as public companies; the federal government requires them to disclose earnings, major corporate decisions (such as the hiring and firing of senior officers) and the value of their assets and debts. It's easy to figure out the value of public equity -- just multiply the current stock price by the number of shares outstanding; the product is known as the market capitalization (this information is readily available at Google or Yahoo! Finance). The portion of the company owned by a shareholder is a function of the number of shares overall, or "outstanding"; in other words, if you bought one share of UPS, for example, you would become the legal owner of one-billionth of the company. Ownership of one of a billion shares does not give you much power; by purchasing a small number you essentially place the fate of your investment in the hands of shareholders who own millions of shares. Although you can still cast your ballot, owners of large portions of the company are generally the only ones truly capable of swaying the results. In the case of public equity, investors will typically own no more than 5 or 10 percent of a company. On the other hand, private equity investors go for the whole enchilada. These investors believe that public shareholders either don't know enough or don't care enough to govern the company properly; I'd imagine that most have memorized the famous speech by Gordon Gekko, the villain of the movie "Wall Street" who has become an inspiration for a generation of investors. By consolidating ownership, these investors believe they can eliminate the inefficiencies that have been tolerated by public shareholders. Once ownership is established, the private equity firm can force the company's leadership to undertake what are often radical changes, such as selling divisions and renegotiating contracts. The objective of the private equity firm is to buy a company whose shares have become undervalued, turn it around in the span of a few years, and then sell new shares back to the public markets at a (hopefully) higher price. In order to gain total control, a private equity investor must buy all of the outstanding shares of a company (this transaction is known as a "buyout"). This is no easy task -- the largest transactions involve billions of dollars. In order to get this kind of capital, private equity firms must borrow money, using as collateral the assets of the company they're buying, achieving what is known as "leveraged buyout." Just as in physics, leverage is an extremely powerful investment tool, available only to funds that can bring millions or billions of their own dollars to the table. However, the debt involved is also dangerous. The amount a private equity firm will borrow to buy a company typically far exceeds what the firm itself is worth. However, the firm is obligated to repay the debt whether or not the acquired company makes them any money. For example, Apollo Management, which bought houseware retailer Linens 'n Things in February 2006 for $1.3 billion. As Linens slid into Chapter 7 bankruptcy, Apollo was forced to assume responsibility for all of the debt. With analysts calling 2008 private equity's Year from Hell, I look forward to see how fund managers will pick themselves up in 2009 and plan for the future. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 4:51 pm Layoffs, Stimulus At IBMWorkers at IBM say the technology company launched a round of layoffs Wednesday. The company has so far been mum, but you can find reports on blogs and on a union website. IBM posted news Tuesday that its fourth-quarter 2008 profits were up 12 percent over the same period in 2007. If you're calculating in shares, analysts say that's $9.20 per. An IBM worker and listener wrote in to point out that the company stands to gain from President Barack Obama's stimulus package, and that CEO Sam Palmisano advised the Obama transition team. UPDATE: The Wall Street Journal reports. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 22 Jan 2009 | 4:34 pm Welcome To The Disaster AreaThis morning, I'm turning the mic over to Ian Shepherdson, chief U.S. economist at High Frequency Economics. Shepherdson sends two notes today. (Bonus note on deflation after the jump.) On weekly unemployment numbers, he writes: Jobless claims jumped by 62K to 589K, well above the consensus 543K and matching the cycle peak recorded in the week of December 20. Last week's claims were revised up by 3K. . .The labor market remains a disaster area. On housing from the fourth quarter of 2008, Shepherdson says:
Bonus: High Frequency's chief economist Carl Weinberg writes that the recession will continue to drag down the Consumer Price Index. He keys in on the public's perception of deflation: In the financial markets, perceptions are more important than realities. If people perceive themselves to be bogged down in a deflation, they will behave accordingly. They will defer purchases because they expect the price of a new coat or refrigerator or iPod to be lower in a few months than it is right now. Indeed, all the people in the world who are deferring house purchases rather than borrow money to buy a depreciating asset . . .are demonstrating deflationary behavior. . . . This will make the recessions in the developed market economies worse than they might have been in an environment of rising prices. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 22 Jan 2009 | 2:54 pm Coach Profits Fall 14 Percent Coach Inc. is changing course. The New York-based Coach plans to open fewer stores and sell more moderately priced products as the brand that’s a symbol of "accessible luxury" adapts to weakening sales and lower earnings because of the recession. Coach disclosed plans for a less aggressive approach to building its retail network and more customer-friendly price points in reporting a 14 percent decline in second-quarter earnings, to $216.9 million, or 67 cents a diluted share, from $252.3 million, or 69 cents, a year ago. Sales during the quarter ended Dec. 27 dipped 1.8 percent to $960.3 million from $978.0 million. Direct-to-consumer sales inched up 2 percent to $818 million from $803 million, but North American comparable-store sales fell 13 percent. Sales in Japan dipped 1 percent on a constant currency basis, but gained 15 percent on a dollar basis. The second-quarter earnings per share performance was 2 cents better than the analyst consensus estimate of 67 cents. The Coach results are perhaps a harbinger of what lies ahead in coming weeks as vendors and retailers report their quarterly numbers. While there have been a string of analysts’ downgrades and revised forecasts across the apparel sector, Coach is one of the first companies to release financial results that incorporate the dismal holiday period. The company is pulling back on its North American expansion, opening just 20 stores this year compared with the usual 40. Six of the new stores will be in Canada. In contrast, Coach hasn't changed plans for new stores in Japan, China and the Middle East, where its business remains robust, Lew Frankfort, chairman and chief executive officer, told analysts during a Wednesday morning conference call. He added that same-store sales increases in China were in the double digits. Frankfort later told WWD that Coach's U.S. business, which worsened during the second quarter, this month "has stabilized at reduced levels." He also said that, while it will have greater impact during the next fiscal year, the company has introduced more products in the $200-to-$300 price range, which will effectively reduce its in-store pricing average by 10 to 15 percent. Speaking on the call, Frankfort emphasized EPS had declined only slightly "despite the most challenging holiday season our company has experienced during my 30-year tenure. The heavily promotional atmosphere against the deteriorating economic backdrop, impacted both traffic and conversion rates in our retail stores and department store locations, and ultimately led to weaker-than-expected sales." The CEO pointed out that the company's multichannel distribution model reduces its reliance on its full-price U.S. business. He also noted the premium U.S. handbag and accessories category declined by 10 percent during the fourth quarter of calendar 2008, while Coach's handbag sales fell by 6 percent and directly operated stores by only 1 percent. "Obviously we are in uncharted waters, Coach and America as well," he said. "We know our business well. We have a very strong franchise. We have a very excellent balance sheet. All of you know that we don’t borrow." In unspoken recognition of Coach’s profitable factory store operation, he added, "And when we talk about our inventory being currently equivalent to currency and our ability to repurpose it, it's probably more true for Coach than any other company that I'm aware of." Frankfort noted that because Coach has done so well in past quarters, one of its toughest challenges is facing comparisons with its own historic metrics. Shares of the company slid $1.15, or 7.3 percent, Wednesday to close at $14.72. More than 20.6 million shares changed hands, nearly three times the company's three-month average volume of 7.3 million shares. The company declined to provide guidance for the remainder of the year. Frankfort told analysts that the $200-to-$300 price range was historically where the company "did their best." Later, he told WWD that the firm is not lowering prices on existing styles, but will instead introduce new collections that feature more product in the so-called "sweet spot" price range. There are a few offerings, such as the Penelope Op-Art Shopper at $298, already in the stores. The new designs to sell below the $300 price range will feature fewer decorative elements, have simpler construction and more modest fabrications, according to Frankfort. Last year the company, which previously had relied primarily on China for the manufacture of its bags, began sourcing in other areas for better pricing options and is now producing more in India and Vietnam due to the lower-cost base in those countries, he said. Coach is one of numerous companies seeking alternative sourcing options to China as that nation's labor and other costs spiral. To make room for the new collections, some older lines, such as Ergo, Bleecker and Hamptons, have been retired. The average life span of a collection varies from one to five years before rotation out of the assortment. Frankfort said the company made a decision not to discount at its full-price stores during holiday so as not to dilute the brand, although there was some promotional activity at its factory stores to clear some inventory. Gross margin during the quarter dropped to 72.1 percent from 75.4 percent in the second quarter of last year. While some see the current retail landscape as a time to pull back to conserve cash, Frankfort sees it as a time for opportunity. He said he believes sales of handbags and small leather goods will hold up better than apparel. "There is still substantial opportunity in small leather goods, the core business for us, [as well as in] watches, jewelry and fragrance. There are lots of opportunities for us to expand our offerings, particularly in jewelry," he explained. For the six months, profits fell 10.9 percent to $362.7 million, or $1.10 a share, from $407.1 million, or $1.09, last year. Sales inched up 3.5 percent to $1.71 billion from $1.65 billion. Todd Slater, analyst at Lazard Capital Markets, is estimating third-quarter EPS at 32 cents, down from 43 cents, and fourth-quarter EPS at 38 cents, down from 47 cents. Both estimates assume a worst-case scenario for consumer spending patterns where traffic could remain down 10 percent or more and full-price same-store sales decline more than 10 percent for the foreseeable future. Foreign Policies Booking Revenue Growth The Next Big Import: Lawsuits Source: Portfolio.com: Top 5 | 22 Jan 2009 | 1:30 pm Ahead of the Bell: Charlotte Russe sees 2Q loss (AP)AP - Amid a year-long turnaround plan teen clothing retailer Charlotte Russe Holding Inc. says it will consider selling itself, and warned that continued sales weakness will drive a larger-than-expected loss for the fiscal second quarter.Source: Yahoo! News: Business | 22 Jan 2009 | 12:17 pm
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