Stealing From Shareholders By Resetting Stock Option Prices

Source: 24/7 Wall St. | 24 Jan 2009 | 1:03 pm

Libya eyes nationalisation of oil firms: Kadhafi

Libyan leader Moamer Kadhafi said Tripoli could nationalise foreign oil firms operating in the country unless prices rise to 100 dollars a barrel, the state news agency JANA reported on...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 12:18 pm

Obama pushes recovery plan (Reuters)

Reuters - U.S. President Barack Obama launched a drive on Friday to get his $825 billion economic recovery plan through Congress, predicting lawmakers would resolve differences before a mid-February deadline.

Source: Yahoo! News: Business | 24 Jan 2009 | 12:04 pm

Obama pushes recovery plan

WASHINGTON (Reuters) - U.S. President Barack Obama launched a drive on Friday to get his $825 billion economic recovery plan through Congress, predicting lawmakers would resolve differences before a mid-February deadline.
Source: Reuters: Business News | 24 Jan 2009 | 12:04 pm

Auto Review: 2009 Acura RL: Caviar price tag, vegetable fun

Luxury touches galore, a sophisticated all-wheel drive system and your own radar system -- all are present on Acura’s top-of-the-line sedan.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 11:01 am

Minister says UK banks came close to collapse

Britain's banking system was on the verge of collapse before the government stepped in with a multibillion-pound (dollar) bailout in the autumn, a government minister was quoted as saying...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 10:56 am

Finnair pilots begin overtime ban

Hundreds of Finnair pilots began an overtime ban Saturday and warned of possible strikes, seeking to speed negotiations in a labor dispute. The action would not affect flights on...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 10:52 am

Governors seek concessions from public workers

Governors across the nation are seeking significant concessions from public employee unions in hopes of helping to balance their teetering budgets during the economic downturn. From...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 8:52 am

Southwest Airlines triggers fare war

Other carriers move to match the sale prices amid worry about weak demand for travel during a recession. Major...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Profit plummets at General Electric

Its financing unit fared badly in the quarter. The results underscore a weak U.S. economy. In a discouraging report...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Chrysler's hometown tries to retool

With the automaker in deep trouble, Auburn Hills, Mich., wants to diversify out of the car business. For one thing, it's hoping to become a medical Main Street. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

More companies offer to reprice, exchange 'underwater' options

To retain employees, big corporations like Google and Starbucks are making moves to bring relief to employees whose compensation is largely tied to company share prices. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Economy in shock: It's failure overload

Any capitalist nation must be willing to embrace some level of economic Darwinism: the notion that the fittest survive while the less robust fall away.
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Appeals court ruling favors creators of the Taco Bell Chihuahua

The fast-food chain is solely liable for $42 million in breach-of-contract awards to two Michigan men who developed the mascot idea, which was the basis of the company's hit ad campaign in the '90s. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Dow Chemical in talks to finalize Rohm & Haas acquisition

CHEMICALS
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Pfizer said to be in talks to buy Wyeth

The drug giant seeks to offset the threat of generic competition. Pfizer Inc., seeking to replace revenue it will...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

California unemployment rate jumps to 9.3% in December

The jobless rate, up from 8.4% in November, is the highest in 15 years, highlighting the severity of the economic slowdown. The rate in Los Angeles County is 9.9%. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Intel Chairman Craig Barrett to retire in May

Intel Corp. Chairman Craig Barrett, who steered the company through the dot-com meltdown as chief executive officer and has become a high-profile advocate for expanded computing in the developing world,...
Source: RSS feed - channel BNPaperBusiness | 24 Jan 2009 | 8:00 am

Salmonella may have contributed to 7 deaths

Health officials say the death of a Minnesota woman has been linked to the nationwide salmonella outbreak and now the infection may have contributed to seven deaths. Officials say the...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 6:15 am

California-based 1st Centennial Bank fails

1st Centennial Bank of Redlands, Calif. was seized by the Federal Deposit Insurance Corp. and state regulators on Friday. It was the third bank failure this year, and brings to 28 the number of banks that have closed since the beginning of the current credit crisis.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 6:13 am

Bolivia nationalises energy firm

Bolivia seizes control of a foreign-owned energy company two days before a vote on a proposed constitution that consolidates state control over the economy.
Source: BBC News | Business | World Edition | 24 Jan 2009 | 5:17 am

Market Snapshot: Markets focus on earnings, bank-rescue plan

The market will begin the peak period for quarterly earnings reports next week, as evidence grows that the economic pain is being felt across an ever-broadening range of industries.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 5:01 am

This Week’s Links

Psychotactics shares how to market effectively by understanding how the brain works.

Former Wall Street Journal editor and Assistant Secretary of the Treasury slams the mainstream media.

BusinessListening.com offers insightful tips on the art of relating.

Our very own Lela Davidson has a sweet accounting blog called Accounting Solver. Check it out before tackling your taxes!

The Dwell Blog reports on Switzerland’s new zero star hotel, located in a bunker. No thanks.

Source: Business Pundit | 24 Jan 2009 | 4:44 am

This Week’s Weird Jobs

This week’s weird jobs aren’t weird in and of themselves–at least not at first glance. They do have strong potential to be weird, depending on how crazy they make you:

1. Nebraska: Airport Barista

Our coffee shop in the airport needs Baristas! Training is provided, and we’re offering $8.50 per hour, plus tips (varying, but usually quite significant.) We have part-time and full-time positions available. We have benefits including discounts on meals and free airport parking.

Just be really darn fast. If you’re slow, an angry traveler may throw hot liquid in your face. No health insurance provided.

2. Maine: Summer Camp Nurse

Small traditional boys summer camp on beautiful lake looking for nurse. Positions for both a live-in and commuter. Great staff and great campers. Fun environment. Please contact for more information.

Must specialize in skinned knees and bloody noses.

3. California: Commercial Pest Control Sales

Large National Pest Control Provider is looking for experienced outside Commercial Sales People to train to be successful in our industry. Must be willing to demostrate creative sales abilities as well as have strong closing skills.

“Creative sales abilities” –> You have pests. It doesn’t matter if you can’t see them. Only we are qualified to see the evidence of your vermin. Now, how about that Gold Package?

4. California: F/T INFANT TEACHER

Little Garden Infants are off and running!!! We need somebody that loves babies as much as we do!

If you are Interested in becoming our baby teacher. Come by and check out our brand new Infant Classroom.

“Teach” infants by changing their diapers, bouncing them up and down, and making silly faces, 40 hours a week.

5. California: Smog Tech

Local shop looking for Smog Techs with experience in diagnosis & repair. Valid driver’s license required.

Must provide own coveralls and utterly indifferent interaction style.

Happy Friday!

Source: Business Pundit | 24 Jan 2009 | 4:42 am

BHF's Schweikert Sees Gulf Economic Growth Slowing to 2%

Source: Bloomberg - All Podcasts | 24 Jan 2009 | 4:22 am

Toyota Japan output to drop 60 percent in April: report

TOKYO (Reuters) - Toyota Motor Corp plans to reduce vehicle production in Japan by nearly 60 percent in April, a level that could force it to cut its domestic workforce amid slumping car...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 4:02 am

Toyota Japan output to drop 60 percent in April: report (Reuters)

Reuters - Toyota Motor Corp (7203.T) plans to reduce vehicle production in Japan by nearly 60 percent in April, a level that could force it to cut its domestic workforce amid slumping car sales, Tokyo Shimbun newspaper reported on Saturday.

Source: Yahoo! News: Business | 24 Jan 2009 | 4:02 am

Toyota Japan output to drop 60 percent in April: report

TOKYO (Reuters) - Toyota Motor Corp plans to reduce vehicle production in Japan by nearly 60 percent in April, a level that could force it to cut its domestic workforce amid slumping car sales, Tokyo Shimbun newspaper reported on Saturday.
Source: Reuters: Business News | 24 Jan 2009 | 4:02 am

Fed Meeting, U.S. GDP, Housing Market

Source: Bloomberg - All Podcasts | 24 Jan 2009 | 3:40 am

Australia boosts economic stimulus to 26 billion

The Australian government on Saturday unveiled a four billion dollar (2.6 billion US) stimulus plan for the nation's building industry, taking its total spend to combat the global economic...
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 3:36 am

Third bank failure of 2009

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 3:19 am

Centerplate, Inc. Announces Successful Tender Offer and Execution of Supplemental Indenture

Extends Expiration Date Of Tender Offer For Its 13.5% Senior Subordinated Notes Due 2013 STAMFORD, Conn., Jan. 23 /PRNewswire-FirstCall/ -- Centerplate, Inc....
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 3:10 am

SEC reviewing Steel's TV comments on Wachovia: report

NEW YORK (Reuters) - U.S. regulators are probing former Wachovia Corp Chief Executive Robert Steel over comments he made on television about his bank the day before it started talks about a potential merger, the Wall Street Journal reported late on Friday.
Source: Reuters: Business News | 24 Jan 2009 | 3:07 am

SEC reviewing Steel's TV comments on Wachovia: report

NEW YORK (Reuters) - U.S. regulators are probing former Wachovia Corp Chief Executive Robert Steel over comments he made on television about his bank the day before it started talks about a
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 3:07 am

SEC reviewing Steel's TV comments on Wachovia: report (Reuters)

Reuters - U.S. regulators are probing former Wachovia Corp Chief Executive Robert Steel over comments he made on television about his bank the day before it started talks about a potential merger, the Wall Street Journal reported late on Friday.

Source: Yahoo! News: Stock Markets News | 24 Jan 2009 | 3:07 am

Senate Democrats unveil stimulus bill

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 3:02 am

Foreclosure flood: Worse than you think

Housing might be in worse shape than we think.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 2:53 am

Pfizer-Wyeth deal talks heat up: sources (Reuters)

Reuters - Pfizer Inc, the world's largest drugmaker, is in talks to buy Wyeth, sources familiar with the situation said on Friday, and one source put the possible value of the deal at about $67 billion.

Source: Yahoo! News: Business | 24 Jan 2009 | 2:51 am

Pfizer-Wyeth deal talks heat up: sources

NEW YORK/PHILADELPHIA (Reuters) - Pfizer Inc, the world's largest drugmaker, is in talks to buy Wyeth, sources familiar with the situation said on Friday, and one source put the possible value of the deal at about $67 billion.
Source: Reuters: Business News | 24 Jan 2009 | 2:51 am

Detroit's ripple effects

As Detroit's Big Three automakers fight for survival, thousands of small suppliers are caught in their economic wake, struggling to adapt to a shrinking industry.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 2:49 am

Dirty secrets of 'out-of-business' sales

They're seen as either big-time bargains or big-time scams. What really goes on at a "going-out-of-business" sale is something in between, according to experts.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 2:36 am

Stocks eye Obama, Fed, earnings

NEW YORK (Reuters) - With Wall Street in the middle of an earnings free fall, investors will eye any moves from the White House next week to revive banks and craft a recovery plan to salvage the economy from its year-long recession.
Source: Reuters: Business News | 24 Jan 2009 | 2:30 am

Stocks eye Obama, Fed, earnings (Reuters)

Reuters - With Wall Street in the middle of an earnings free fall, investors will eye any moves from the White House next week to revive banks and craft a recovery plan to salvage the economy from its year-long recession.

Source: Yahoo! News: Stock Markets News | 24 Jan 2009 | 2:30 am

Stocks eye Obama, Fed, earnings (Reuters)

Reuters - With Wall Street in the middle of an earnings free fall, investors will eye any moves from the White House next week to revive banks and craft a recovery plan to salvage the economy from its year-long recession.

Source: Yahoo! News: Business | 24 Jan 2009 | 2:30 am

UPDATE 9-Pfizer-Wyeth deal talks heat up - sources

* Big takeover could help Pfizer make up for Lipitor loss
Source: RSS feed - channel BNewsBusiness | 24 Jan 2009 | 2:08 am

Microsoft CEO sees slow economic rebound: employees

LOS ANGELES (Reuters) - Microsoft Corp CEO Steve Ballmer said the U.S. economy likely will not bottom out until about a year from now, and it will return to a slow growth-track only after a few years, according to people who attended a meeting with Ballmer and other executives on Friday.
Source: Reuters: Business News | 24 Jan 2009 | 1:40 am

Intel's Barrett to bow out as tech crisis simmers

SAN FRANCISCO (Reuters) - Intel Corp Chairman Craig Barrett, the courtly former academic credited with building the company into the world's foremost chip maker, will retire in May after 35 years at the company.
Source: Reuters: Business News | 24 Jan 2009 | 1:13 am

Pressure builds on BofA's Lewis

More shareholders have filed lawsuits accusing the bank's embattled chief executive of mismanagement, while a state prosecutor is ramping up an investigation into an accelerated schedule of bonus payments at Merrill Lynch
Source: Financial Times - US homepage | 24 Jan 2009 | 12:57 am

MF Global's Brady Says Day Traders Are `Alive and Well'

Source: Bloomberg - All Podcasts | 24 Jan 2009 | 12:50 am

Freddie Mac to seek 30-35 billion dollar Treasury injection (AFP)

AFP - US government-controlled mortgage finance giant Freddie Mac said late Friday that it would ask the Treasury for an additional 30 to 35 billion dollars to prevent its collapse.

Source: Yahoo! News: Business | 24 Jan 2009 | 12:46 am

VIX Index of U.S. Stock Option Prices Retreats 0.04% to 47.27

Source: Bloomberg - All Podcasts | 24 Jan 2009 | 12:39 am

Freddie Mac to ask government for another $30-$35 billion

Freddie Mac plans to ask the government for up to $35 billion in extra support as the housing slump continues to hammer the mortgage giant.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:39 am

Trends & Innovations - Friday

Remote patrol can net intruder

Source: Investor's Business Daily: BUSINESS | 24 Jan 2009 | 12:38 am

Business Briefs - Friday

Optimism that Congress will approve billions of dollars in tax breaks and incentives to promote greater use of alternative energy sources helped...

Source: Investor's Business Daily: BUSINESS | 24 Jan 2009 | 12:38 am

Putting The 'Soft' In Drinks

In an age of growing waistlines and shrinking budgets, the soft drink industry has lost some of its fizz.

Source: Investor's Business Daily: BUSINESS | 24 Jan 2009 | 12:38 am

Coke Distribution Deal Could Be A Monster Boost For Drink Maker

Hansen Natural recently got a big jolt from a pact that could build its muscle in the energy-drink field.

Source: Investor's Business Daily: BUSINESS | 24 Jan 2009 | 12:38 am

Taxing Times: Perks in House, Senate stimulus bills may be difficult to pay out

Lawmakers are working on getting an economic stimulus bill through Congress and to President Obama's desk for a signature by mid-February. In all likelihood, that means a slew of tax breaks aimed at moderate-income taxpayers in 2009 and 2010.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:38 am

Capital One results suggest gloomy 2009 for credit card industry

Quarterly results from Capital One Financial suggest the credit card industry faces a tough 2009 as more borrowers struggle to repay debt and cut spending.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:36 am

Earnings Season, Automaker Changes, Home Sales

Source: Bloomberg - All Podcasts | 24 Jan 2009 | 12:34 am

Stocks to Watch: Stocks in focus for Monday

Monday is expected to be an exciting day in the market with Dow components Caterpillar, McDonald's and American Express scheduled to release earnings. One of the world's largest chipmakers, Texas Instruments, also is scheduled to detail quarterly results.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:34 am

Tax cut plans: Sizing them up

The Democratic leadership of the Senate Finance Committee on Friday released a $275 billion proposal of tax cuts aimed at reviving the economy.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 12:30 am

John Dvorak's Second Opinion: Tech stocks may be entering bull market

If people live buy the rule “sell on good news, buy on bad news,” then this market is one big opportunity to buy -- that is, if you have any money left, writes John Dvorak.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:23 am

The Stockpickers: Midcap stock-fund manager taps Mattel, XTO Energy, SPX Corp.

Midcap stocks were punched hard in last year’s market sell-off, but one mutual fund managed to outperform its peer group by losing less and sticking to a battle plan that focuses on company fundamentals.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:18 am

Davos stars left to dig out of economic avalanche

A global economic crisis won't be enough to keep CEOs and high-flying financiers away from the helipads in Davos next week, but the corporate elite will no longer be the stars of the show when the World Economic Forum's yearly retreat for top executives, economists and politicians gets under way high in the Swiss Alps.

Source: MarketWatch.com - Top Stories | 24 Jan 2009 | 12:12 am

New Fannie, Freddie rules on the way

The federal regulator of Fannie Mae and Freddie Mac will set new rules early next week governing the mortgage finance companies' portfolios, which play a crucial role in the nation's housing market.
Source: Business and financial news - CNNMoney.com | 24 Jan 2009 | 12:03 am

Pfizer $60bn bid approach for rival Wyeth could mark start of drug sector consolidation$

Pfizer, the world's biggest drugs company, is understood to be in talks to buy its rival Wyeth for $60 billion ($£44 billion).
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Embattled Preston Bus gives way to Stagecoach

Staff at Preston Bus, Britain's last employee-owned bus company, will receive windfalls of about £16,000 after selling their business to Stagecoach for about £5 million.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Speculation grows that Barclays will be bailed out as investors 'throw in the towel'

Shares in Barclays plunged again yesterday amid mounting speculation that the Government is preparing to take a stake in the undersiege bank.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

John Thain paid price as Bank of America saw red at extent

To the scores of New York office workers descending into the subway on an unusually humid September Friday, it was just another dark-windowed limousine pulling up outside the Liberty Street headquarters of the New York Federal Reserve Bank.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Need to know: GSK deal with UCB ... Britvic job cuts ... Acal falls

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Tight wallets force men to park their Harley dream

Big boys reined in their big-toy purchases as the recession hit the wallets of American men, sending sales of top-end motorcycles, quad bikes and snowmobiles plummeting.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Soaring closures raise fears of ghost town shopping centres across UK

A sharp rise in the number of stores being shut by distressed retail groups is fuelling fears that chunks of Britain’s high streets and shopping centres will be left as ghost towns by the deepening recession, which was officially confirmed yesterday.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Low-paid lose access to cash as Cattles restricts loans

About 100,000 struggling low-income earners were left without a source of emergency cash this week after Cattles, the sub-prime lender, stopped offering loans.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Aer Lingus shares slump after Ryanair abandons bid

Aer Lingus shares plunged yesterday after Ryanair abandoned its €748 million (£701 million) takeover bid for the airline.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

The case against Gordon Brown

Evan Davis barely laid a glove on Gordon Brown on the Today programme yesterday. Davis’s style of sweet reasonableness, often highly effective, had no impact on the Prime Minister’s rhino hide. Just minutes before the UK recession was finally confirmed, the PM delivered a familiar version of events. This was an international crisis. All countries were affected. Nobody saw it coming.
Source: Latest Business News from Times Online | 24 Jan 2009 | 12:00 am

Chrysler viability hinges on more aid, concessions

NEW ORLEANS/DETROIT (Reuters) - The viability of Chrysler hinges on winning $3 billion of additional government aid and cost savings through concessions by creditors and employees, Chief Executive Bob Nardelli said on Friday.
Source: Reuters: Business News | 23 Jan 2009 | 11:56 pm

Lifestyles of the rich

Ever wonder how the wealthiest Americans make all their money? So did writer Ryan D'Agostino, so he went right up to their doors and asked them. He talks with host Tess Vigeland about his new book, "Rich Like Them."
Source: Marketplace Money | 23 Jan 2009 | 11:51 pm

Do-it-yourself disasters

People will try just about anything to save a buck. But as Sally Herships reports, sometimes the best way to save money -- and avert disaster -- is to call the professionals to begin with.
Source: Marketplace Money | 23 Jan 2009 | 11:51 pm

Day in the Work Life: Web series host

On this week's "A Day in the Work Life," we log on with Kim Waldauer, host of the web series "Cube News 1."
Source: Marketplace Money | 23 Jan 2009 | 11:51 pm

Getting Personal

Host Tess Vigeland and economics editor Chris Farrell answer listener questions about pulling out of the market, retirement plans, investing overseas, credit unions vs. banks, the best use for savings, selling a home and unemployment.
Source: Marketplace Money | 23 Jan 2009 | 11:51 pm

Decoder: Points

In "The Marketplace Decoder," we break down those financial buzzwords making headlines. This week, Marketplace's Ashley Milne-Tyte explains exactly what they mean when they talk about a "point" on the stock market.
Source: Marketplace Money | 23 Jan 2009 | 11:51 pm

The mompreneurial spirit

With the economy in a tailspin, many stay-at-home moms are starting businesses to help support their families. Marketplace's Mitchell Hartman reports on these so-called "mompreneurs."
Source: Marketplace Money | 23 Jan 2009 | 11:50 pm

Straight Story: Lessons from hard times

In President Obama's inaugural address, economics editor Chris Farrell heard a message about setting a firm foundation. Chris sets the story straight on the lessons we can draw from the current downturn.
Source: Marketplace Money | 23 Jan 2009 | 11:50 pm

Adjusting to Obama economics

The White House is considering so many changes it's hard to keep up. Host Tess Vigeland asks Marketplace's Nancy Marshall Genzer how President Obama's plans might affect the personal finances of average Americans.
Source: Marketplace Money | 23 Jan 2009 | 11:50 pm

Banks await second round of bailout

The government is readying the second $350 billion in bailout money as banking stocks continue to dive. Host Tess Vigeland asks Marketplace's senior business correspondent Bob Moon why the first round of money wasn't able to make the fix.
Source: Marketplace Money | 23 Jan 2009 | 11:50 pm

GE profit down 44 percent, CEO stands by dividend

BOSTON (Reuters) - General Electric Co reported a 44 percent drop in quarterly profit on weakness at GE Capital and its lighting and appliance units, and warned that 2009 would be "extremely difficult."
Source: Reuters: Business News | 23 Jan 2009 | 11:42 pm

McDonald's defies downturn

In stark contrast to the multinationals making record job cuts and losses, the fast-food chain plans to create 12,000 jobs and open 240 new restaurants across Europe in 2009
Source: Financial Times - US homepage | 23 Jan 2009 | 11:33 pm

Freddie Mac may draw $35 billion more from Treasury (Reuters)

Reuters - Freddie Mac , the second-largest provider of funding for U.S. home loans, on Friday said expected fourth-quarter losses may force it to draw up to $35 billion from the U.S. Treasury to maintain a positive net worth.

Source: Yahoo! News: Business | 23 Jan 2009 | 11:32 pm

Freddie Mac may draw $35 billion more from Treasury

NEW YORK (Reuters) - Freddie Mac , the second-largest provider of funding for U.S. home loans, on Friday said expected fourth-quarter losses may force it to draw up to $35 billion from the U.S. Treasury to maintain a positive net worth.
Source: Reuters: Business News | 23 Jan 2009 | 11:32 pm

Stocks: Techs rally, blue chips slump

Stocks recovered from session lows Friday as Google's upbeat earnings and a rally in bank stocks helped offset the impact of GE's weaker profit report.
Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 11:31 pm

Wall Street ends mixed as tech, financials rally (AP)

AP - Investors' ambivalence about earnings reports gave Wall Street a mixed performance Friday.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 11:28 pm

US rescue plan hopes raised

Barack Obama voiced confidence that his proposed fiscal stimulus would be agreed by mid-February as renewed turmoil in the financial markets highlighted the worsening global economic outlook
Source: Financial Times - US homepage | 23 Jan 2009 | 11:21 pm

Scorecard for the major stock market indexes (AP)

AP - Investors' ambivalence about earnings reports gave Wall Street a mixed performance Friday.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 11:14 pm

Stimulus: Stuck on cars

A major chunk of the stimulus plan dealing with transportation is drawing fire for focusing too much on building new highways and not enough on regular maintenance projects and public transport.
Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 11:00 pm

Pfizer nears purchase of Wyeth

The 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 competition
Source: Financial Times - US homepage | 23 Jan 2009 | 10:59 pm

Tackling crisis

European winners and losers under Barak Obama
Source: BBC News | Business | World Edition | 23 Jan 2009 | 10:54 pm

Wall Street's culture of entitlement hard to shake (AP)

AP - John Thain should have known the rules.
Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 10:48 pm

Apprentices hit

Recession means some may not finish their training
Source: BBC News | Business | World Edition | 23 Jan 2009 | 10:45 pm

Banks buoy S&P, GE hits Dow; Nasdaq up with Google (Reuters)

Reuters - Wall Street ended a difficult week with the broad S&P 500 closing higher on Friday as investors bought beaten-up financials on hopes of further aid from Washington, offsetting a disappointing outlook from General Electric that kept the Dow under water.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 10:43 pm

Presented By:

Source: Dealbreaker | 23 Jan 2009 | 10:39 pm

Write-Offs: 01.23.09

$$$ Dick Fuld: Protecting the Assets That Remain! [Cityfile]

$$$ Thain to walk away with 'modest' $1.5M [Investment News]

$$$ Auto Lease Trade-In Site Magnanimously Offers To Help Bernie Madoff Out Of Leases [Jalopnik]

Source: Dealbreaker | 23 Jan 2009 | 10:39 pm

24/7 Take: GE "AAA" vs. GE 10% Dividend Yield (GE)

Today, I was asked by CNBC to opine on the credibility over General Electric Co. (NYSE: GE) earnings reaction in the stock, but specifically about the dividend that is now 10% and the "AAA" ratings from the debt ratings agencies.

To view the the interview go here

First and foremost, Jeff Immelt needs to get himself out of the hole he dug by insisting that its common stock dividend was a safe and absolute commitment. Today he made a far "lighter defense" of that dividend today than he has in recent weeks. No company with a "AAA" rating or a "AA" rating needs to have almost a 10% dividend yield. The company needs to slash that by 40% down to just under 6%. That will give it an extra $5 Billion this year. And there is some magic here... Immelt can simply say "We will take it right back up when times get better, but this preserves our balance sheet." We think Immelt will do this as soon as Q2. And he might defy us and the skeptics.

The "AAA" rating is sort of a farce right now. No one cares about the debt ratings agencies now that they rated everything under the sun with a "AAA" rating that only added fuelt o the fire in CDO's and other packaged derivatives that helped contribute to the blow-ups out there. But the company does need to at least keep its financial integrity to where it has the best books of all conglomerates and of all companies in corporate America.

GE has two options here. It either needs to be able to imply that it will have more government guarantees of some sort or it needs to be able to convey that it has no need of further government funding. Immelt said it has 60% of its funding needs met and we are only in January, but Wall Street is proving to be its fickle self.

GE has many problems. It is a conglomerate and it is involved in many aspects of the economy. There are still some calls to break it up. Now that its stock is down so much it would literally have to do something crazy with reverse splits before breaking itself up. The company couldn't unload its appliances and lighting units. So it has to ride the current times out in its existing structure.

Unfortunately, there are no major secret weapons. There are hard times, and there are really hard times. We are actually just formally entering the "really hard times" as no companies can offer guidance beyond a week and every economist in America expects things to keep getting worse before they even stabilize. Whenever the recovery phase comes, we have already had two bellweather companies named Intel and Microsoft tell you that the new baseline that will bve used to measure growth is at a lower hurdle.

GE is not immune. But GE is still making money. For now, it still has a Triple-A. And when things do finally turn, it is likely that GE will be better positioned than many of its competitors in many segments in which it operates. There are just some tough decisions that have to be made. Some will be very tough decisions. Yes, those will involve more pink slips being sent to workers. If it cuts that dividend, then some of the problems will be able to correct themselves.

Jon C. Ogg

Source: 24/7 Wall St. | 23 Jan 2009 | 10:04 pm

On the Ball: Rolle Goes to Oxford, Ryan on Son as Jets' Coach

Source: Bloomberg - All Podcasts | 23 Jan 2009 | 9:55 pm

California jobless rate hits 9.3%

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 23 Jan 2009 | 9:53 pm

Oil rises as Opec output reduced

Oil prices rise as hopes that Opec is complying with its production cuts outweigh new gloomy economic news.
Source: BBC News | Business | World Edition | 23 Jan 2009 | 9:51 pm

Senators Udall, Shaheen Discuss U.S. Role in Gaza War

Source: Bloomberg - All Podcasts | 23 Jan 2009 | 9:43 pm

GE profit down 44 percent, CEO stands by dividend (Reuters)

Reuters - General Electric Co reported a 44 percent drop in quarterly profit on weakness at GE Capital and its lighting and appliance units, and warned that 2009 would be "extremely difficult."

Source: Yahoo! News: Business | 23 Jan 2009 | 9:20 pm

Oil services firm cuts 5,000 jobs

Oilfield services giant Schlumberger reports a fall in quarterly profits and announces job cuts.
Source: BBC News | Business | World Edition | 23 Jan 2009 | 9:20 pm

52-Week Low Club (AXP, COF, NILE, CLX, RDEN, FDX, HOG, ISRG, KF, MSCC, PII, RAX, RNWK, STX)

Source: 24/7 Wall St. | 23 Jan 2009 | 9:14 pm

Fashion Meets Finance

Hop in the Delorean, we're gunning this baby to the douche-tastic (but much loved) days of 2007. Put on your sunglasses cause we assure you, second-hand embarrassment will ensue:

Broke bankers and struggling models mobbed the rooftop of the Empire Hotel last night for the latest installment of Fashion Meets Finance. A tipsy brunette on crutches was trying to put her Burberry coat on so she could leave, but guys wearing suits sans ties kept jostling her as they moved past.

The party was billed as a return to the halcyon excesses of 2007, and enough unemployed finance types fished the necessary change from their couch to pony up for a bottle of Absolut. Liz, a 20-something fashionista in a low-cut black cocktail dress, eyed them skeptically and said, "just look at all the douches in those seats. They're all so broke." A line-up of seven models was in the DJ booth nodding to anemic dance music.

One of them, Sabrina Roberts, a six-foot Afro-Chinese stunner wearing a tiny creme-brulee-colored dress--told me she wasn't giving up on finance dudes. "One, they're more interesting; and two, can you imagine if everyone was in fashion?" I asked her if she had ever thought of dating so-called normal people. She twirled around, took a sip from her champagne flute and asked happily, "How do normal people pay for champagne?"

Graphic assault to the senses after the jump (via pictures from one of our readers who braved the storm).

Source: Dealbreaker | 23 Jan 2009 | 8:59 pm

Billion-Dollar U.S. Verdicts Vanish After Appeals, New Rulings

Source: Bloomberg - All Podcasts | 23 Jan 2009 | 8:45 pm

Is Internet Advertising Revenue Falling As Fast As Print? (NWS)(NYT)(YHOO)(MSFT)(GE)(MNI)(GCI)(MHP)(TWX)

Source: 24/7 Wall St. | 23 Jan 2009 | 7:48 pm

Goldman Sachs (Executive) Desperate To Sell Assets

This is the sort of bull of such magnificent proportions that I don't even want to pass it on but here it is. Goldman Sachs president and co-chief operating officer, Jon Winkleried, has been forced to cut the asking price of his Nantucket waterfront home a whopping 30 percent. In October, Winks put the vacation place, set on 5.9 acres on Cathcart Road, which he bought in 1999 for about $6 million, on the market for $55 million. No bites, and now, per the Journal, Winkle has been reduced to practically giving the spread away, currently priced at $38.5 million. A time-share situation, wherein Warren Buffett's would pay $5,000/week for 6 weeks/year (with a few buxom prosties as WB's special preferred dividend), in the hopes that others will pay $1 million/week, is said to be gaining ground as Winks's Plan B.

Goldman Official Cuts Nantucket Price by 30% [WSJ via Cityfile]

Source: Dealbreaker | 23 Jan 2009 | 7:39 pm

The rich still want to own newspapers

The crisis in the industry has thrown up a novel opportunity for would-be Citizen Kanes to burnish their reputations, writes Andrew Edgecliffe-Johnson
Source: Financial Times - US homepage | 23 Jan 2009 | 7:38 pm

Hear: A Forced Vacation

Today on Planet Money:

-- The last time we heard from Noel Paterson, the Microsoft worker was driving the backroads of Washington State, picking up cheap electronics he found on Craigslist. Now, he checks in from his new post on the economic frontier. Paterson was one of 1,400 people Microsoft laid off this week.

-- Which would you rather have happen to you -- a layoff, a pay cut or a furlough? As companies look for ways to slash costs without canning workers, more of you are reporting that you're being asked to take short periods off without pay. Listeners Elizabeth Call and Daniel Cross wonder what will happen next, and economist Howard Rosen worries.

Download the podcast; or subscribe. Intro music: Arcade Fire's "Neighborhood #3 (Power Out)." Find us: Twitter/ Facebook/ Flickr.

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Source: NPR Blogs: Planet Money | 23 Jan 2009 | 7:25 pm

Blue Horseshoe Loves John Thain

Footnoted is carrying a rather interesting post that notes the SECs continued interest in John Thain and his employment arrangements even before he was revealed as an affluent and enthusiastic connoisseur of expensive interior decor advice.

But it turns out the SEC has been asking its own questions about Thain, judging by a series of comment letters that have recently been made public. This letter dated Oct. 22 and sent on behalf of Bank of America (BAC) from high-powered law firm Wachtell Lipton responds to a letter sent by the SEC on Oct. 15 which raised 24 questions about the merger between BAC and Merrill. Here's question #20:

Please provide a total dollar amount (estimated, if necessary) for each individual officer or director who stands to benefit from the merger. Please include a discussion regarding Mr. Thain's continued employment arrangement with Bank of America and any similar arrangements with other Merrill Lynch officers and directors. Please include how these decisions will impact compensation for each individual.

That this information wasn't part of the original filings and that the SEC had to ask for it to be included speaks volumes about this deal. In that same letter, another question focused on the fairness opinion -- something we footnoted back in December.

A week later -- on Oct. 29 -- Wachtell Lipton sent another letter in response to SEC questions, including this one on Thain's compensation once he joined Bank of America.

We note the 8-K filed by Bank of America on October 8, 2008 regarding Mr. Thain's employment. With regard to Mr. Thain or other officers you have offered to retain, please include any compensation arrangements Bank of America has agreed to in connection with their continued employment.

Response:
The Staff is supplementally advised that the disclosures on pages 10, 69 and 75 of the Amendment continue to be accurate; as disclosed on pages 10 and 75, Bank of America has not reached agreement with Mr. Thain or any other executive officers of Merrill Lynch on compensation arrangements in connection with their continued employment following completion of the merger.

Uh oh.

The SEC was also asking questions about John Thain... [Footnoted.org]

(Emphasis ours)

Source: Dealbreaker | 23 Jan 2009 | 7:11 pm

China hits back over renminbi comments

The US and China have embarked on a public row over foreign exchange policy with China denying it was 'manipulating' its currency
Source: Financial Times - US homepage | 23 Jan 2009 | 7:09 pm

GE profit falls 43% to $3.9bn

General Electric's quarterly profit tumbled 43%, capping a tumultuous year that tested the conglomerate's credibility with investors and cast doubt on the future of its financial-services arm
Source: Financial Times - US homepage | 23 Jan 2009 | 7:00 pm

Bernie Madoff To Run Free?

In the depths of hell? Maybe! Though it's become something of a parlor game to try and figure out who exactly will put a successful contract out on his head (Colombians? the Noels? Ruth Madoff?), it turns out Bernie-boy may get the job done himself. Page Six reports that several sources say Madoff may be suffering from pancreatic cancer. It would be distasteful of us to run a poll asking you to democratically determine if this is part 1 of a 'fake my death' scam but if you want to go ahead and let us know what you think, we're not gonna stand in the way.

Source: Dealbreaker | 23 Jan 2009 | 6:52 pm

President Obama flexes his tech muscle

President Obama is showing some tech savvy. He plans to post weekly video addresses on YouTube, and is creating a new chief technology officer position in his cabinet. Kai Ryssdal speaks with CNET.com's Declan McCullough about the technology officer.
Source: Marketplace | 23 Jan 2009 | 6:28 pm

Ken Lewis: I Will Turn This Place Into The Smartest Bank On The Street Yet

So, this is awk. If you thought Ken Lewis only dismissed employees from Bank of Amerillwide for spending 90k on rugs, you thought wrong, kemo sabes. Other fireable offenses in KL's mind seem to include the ability to identify cesspools pools fit for being consigned to the scrap heap of corporate history. We're told that Lewis, with the backing of former Countrywide CEO and current BAC fluffer Angelo Mozilo, got rid of Merrill bank analyst Ed Najarian after the firms merged research teams, despite the fact that his BAC counterpart, Ken Usdin, mostly covers the smaller firms, as does Heather Wolf, who was kept on from Merrill. Apparently the reason being cited by people who discuss these sorts of things is Najarian's sell call on Bank of America, though we're counting on one of you pick up the gauntlet thrown down by Charlie Gasparino, and find us some damning evidence of the scatological variety.

Reaffirm Sell [PDF]

Source: Dealbreaker | 23 Jan 2009 | 6:25 pm

Trennert Says GE Dividend No Reason to Buy Stock

Source: Bloomberg - All Podcasts | 23 Jan 2009 | 6:24 pm

World markets fall as UK slides into recession (AP)

AP - World markets fell Friday as investors were disheartened by weak corporate and economic figures and confirmation that Britain plunged into recession at the end of last year.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 6:15 pm

Waiting To Buy

The folks at High Frequency Economics noted this week that the perception of deflation creates deflation. Listener David Melito seconds that, in an e-mail with the subject line "My Mother's Hallway Mirror." He writes:

I was chatting with my mother the other day and she said to me that she had her eye on a hallway mirror at [deleted]. She said "I know that they are about to declare bankruptcy so I am waiting for the clearance sale. You have to wait awhile for them to really cut the prices."

It got me to thinking if my mother is buying a hallway mirror from a company that is going out of business. That means she is NOT giving money to a company that is trying to stay in in business. She can't be the only person making these types of decisions.

Where does this end?

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Source: NPR Blogs: Planet Money | 23 Jan 2009 | 6:08 pm

GE reports sharp drop in profit

US conglomerate General Electric reports a 44% drop in quarterly profit and warns that 2009 will be 'extremely difficult'.
Source: BBC News | Business | World Edition | 23 Jan 2009 | 5:56 pm

Pimco's Clarida Sees U.S. Banks Moving Toward Nationalization

Source: Bloomberg - All Podcasts | 23 Jan 2009 | 5:48 pm

World stocks close bad week on poor footing (AFP)

AFP - An unending torrent of bad economic and corporate news pushed global stock markets lower again Friday, with every attempted advance undercut before investors could gain any momentum.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 5:46 pm

World stocks close bad week on poor footing (AFP)

AFP - An unending torrent of bad economic and corporate news pushed global stock markets lower again Friday, with every attempted advance undercut before investors could gain any momentum.

Source: Yahoo! News: Business | 23 Jan 2009 | 5:46 pm

Bar mitvahs less outlandish in recession

Before the recession, many bar mitzvahs were outlandishly extravagant with families spending lavishly on parties after the religious ceremony. But the economic downturn is bringing these parties back down to earth. Rebecca Sheir reports.
Source: Marketplace | 23 Jan 2009 | 5:38 pm

Weekly Wrap: All about Obama

Even with all the bad news about the economy, the main focus of the week was on President Barack Obama. Kai Ryssdal speaks with Fortune Magazine's Leigh Gallagher and The New York Times's David Leonhardt about how the president is addressing the economy and his stimulus package.
Source: Marketplace | 23 Jan 2009 | 5:38 pm

Would you like a pay cut or layoff?

To cope with the recession, many companies are considering layoffs or pay cuts. Across-the-board pay cuts are mounting and more are expected to follow. But is it better for companies to cut pay or let employees go? Jeremy Hobson reports.
Source: Marketplace | 23 Jan 2009 | 5:38 pm

Sovereign wealth funds suffering

Dubai investors who bought Barneys New York less than two years ago now want to put it up for sale. Sovereign wealth funds like Dubai's were once huge sources of cash for U.S. companies. But that's starting to change. Sam Eaton reports.
Source: Marketplace | 23 Jan 2009 | 5:38 pm

GOP wants more tax cuts in stimulus

President Obama met today with congressional leaders to discuss the best way to kick-start the economy. House members will try to pass their bill next week, but a large number of Republicans take issue with some of the stimulus proposals. John Dimsdale reports.
Source: Marketplace | 23 Jan 2009 | 5:37 pm

Amid losses, GE still paying dividends

General Electric is reporting a 44% drop in quarterly profit. Despite this, the technology conglomerate is still paying dividends to investors. Why? Alisa Roth reports.
Source: Marketplace | 23 Jan 2009 | 5:37 pm

Hunting The CDS Demons

The latest quest for financial weapons of mass destruction (hint: try looking in Syria) has a concerted push against Credit Default Swaps. Michael Lewis, cranky former banker turned cranker former writer slaps them with a left handed insult or two in The Atlantic last week, and random blogs ranging from The Market Ticker to Deal Journal to the electronic memo press at Wachtell Lipton Rosen & Katz regularly throw up missives bemoaning the very existence of the CDS market.

This from The Market Ticker:

"Naked" CDS, that is, swaps written or purchased not to hedge a bond or other business relationship but instead to speculate on the firm's fortunes are effectively the same thing as a naked short, in that there are NO boundaries on how many CDS contracts can be written against a firm and by having them cash-settle they amount to nothing more or less than a gambling contract with no limit as to the leverage that can be employed.

We tend to be highly skeptical of any efforts to reduce pricing information. That is effectively what this is. Short selling bans and CDS bans only really reduce information available to the market. It is amazing to argue that credit default swaps (about the only counter balance to the insanity that was rating agency analysis) in the hands of evil hedge funds somehow precipitated the destruction of firms that were otherwise on the soundest of footing. Returning to Mark-To-Myth accounting and abandoning "What My Assets Are Really Worth At The Time Of This Writing" accounting amounts to the same insanity. Anyone who claims that such marks are "unrepresentative because they are at fire sale prices" is merely imposing their long-term price forecasting on accounting policy. We've seen how well these long-term forecasters predict prices, so we'd like to pass on that plan, thanks.

What most anti-short, anti-CDS proponents miss is that a firm with sufficient capital, a reputation for transparency and limited spin doctoring shouldn't have to worry about short-sellers or credit default swaps- or should use the dip caused by such panic to buy back shares and move on. If pricing information on a thinly traded CDS contract somehow swings equity prices in dramatic ways it is because the market gives the disclosures offered up by management and ratings agencies almost no weight. This is exactly as it should be. When you are in a leveraged business, credibility is absolutely essential. Lehman didn't fail simply because it was heavily leveraged. It failed because no one believed Erin Callan anymore and even a seriously interested party like David Einhorn was so obviously making so much more sense than Erin and the Lehman PR apparatus. Does anyone still doubt that the Lehman at $0.00 was the wrong price for that firm at the time?

Time to face facts. Propping up failed firms by artificially inventing prices (we are looking at you, Treasury) and then removing any ability of the market to contest those marks is Fantasy-Capitalism. We are all for a rich fantasy life. (Without it we wouldn't have Marcus Schrenker). This said, we'd like it kept out of our Capitalism Cheerios, 'kay, thanks. The CDS market is effectively the only market that was getting it right in the second half of 2007. Gutting it is a bad, bad idea^(tm).

Source: Dealbreaker | 23 Jan 2009 | 5:23 pm

Gillibrand to take NY Senate seat

A relatively low-profile conservative Democrat congresswoman was named to fill the US Senate seat for New York vacated by Hillary Clinton, secretary of state
Source: Financial Times - US homepage | 23 Jan 2009 | 5:20 pm

Cash Pipeline Still Flows at Kinder Morgan (KMP, SRE, COP)

Kinder Morgan Energy Partners L.P. (NYSE:KMP) reported earnings yesterday, and handily missed analysts expectations of $3.4 billion in revenue and earnings per limited partner unit of $0.53. Revenue for the fourth quarter totaled nearly $2.3 billion and earnings per unit came in at $0.26. Still, the stock rose about $2/unit before closing the day at $48.49/unit. The quarterly distribution to limited partners will amount to $1.05/common unit.

The number that really matters to Kinder Morgan is its income from continuing operations before taxes. For the fourth quarter, this amounted to $262.6 million, up from $175.1 million a year ago. For the year, income from continuing operations totaled $1.34 billion, up nearly 3x from last year's $487.4.

The big hike in income is the result of the opening of the first phase of the Rockies Express (REX) natural gas pipeline. REX is a joint venture with Sempra Energy Inc. (NYSE:SRE) and ConocoPhillips Corporation (NYSE:COP) that will be completed in April 2009 and haul 1.8 billion cubic feet of natural gas every day from Cheyenne, Wyoming, to the eastern border of Ohio. The final cost for REX will reach $6.2 billion, but according to Kinder Morgan the line is fully subscribed under long-term contracts.

The unit price is rising again this morning, up to $48.95. The 52-week high is $60.89.

Paul Ausick
January 23, 2009

Source: 24/7 Wall St. | 23 Jan 2009 | 5:19 pm

Exelon & NRG, Earnings and a Duel (EXC, NRG)

Exelon Corporation (NYSE:EXC) rose nearly 1.5% yesterday after the company reported fourth quarter 2008 EPS of $1.07, up from $0.84 in 2007. Full-year revenue of $18.86 billion was almost $1 billion higher than estimates, and full-year EPS reached $4.13 slightly lower than estimated EPS of $4.17. The company reaffirmed guidance for 2009 for non-GAAP earnings of $4.00-$4.30/share. Exelon also confirmed that it will continue its efforts to acquire NRG Energy Inc. (NYSE:NRG).

The earnings release included a report of a meeting between Exelon and NRG executives at which no "agreement or arrangement concerning further discussions, due diligence or other exchange of information" was reached. According to Exelon, NRG wants to see if any other companies are interested in buying NRG.

NRG's preliminary report confirmed adjusted EBITDA guidance of $2.2 billion for 2009, and upped the cash flow from operations by $200 million, to $1.5 billion.

NRG shares are trading up slightly this morning, and Exelon is down about 1%.

Paul Ausick
January 23, 2009

Source: 24/7 Wall St. | 23 Jan 2009 | 5:16 pm

Bad News at Schlumberger, Yet Shares Rise (SLB, WFT, HAL)

Schlumberger Limited (NYSE:SLB) reported a clear miss on quarterly and annual revenue and EPS estimates, but shares rose more than 6%. On top of that, the company expects 2009 to be weak, with drops in North American drilling, and lower "production enhancement" in Russia and "mature offshore basins." The company also expects prices to erode.

The company announced layoffs earlier this month, and wrote off some outstanding receivables. All that had already been factored into the share price.

But oil field services just doesn't seem like a good place to be with E&P spending on the decline. Perhaps investors were expecting the news from Schlumberger to be worse. In any event, competitors Weatherford International Ltd. (NYSE:WFT) and Halliburton Company (NYSE:HAL) are riding Schlumberger's coattails today. All are up between about 4% and 6%. Go figure.

Paul Ausick
January 23, 2009

Source: 24/7 Wall St. | 23 Jan 2009 | 5:11 pm

London shares suffer as recession bites (AFP)

AFP - London stocks finished fractionally up on Friday as investors came to terms with GDP data showing that the country had officially entered a recession.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 5:09 pm

Why the yen remains a haven

Economic weakness is no barrier to a strong currency. Lindsay Whipp and Peter Garnham examine the case of the Japanese yen
Source: Financial Times - US homepage | 23 Jan 2009 | 5:08 pm

'50,000 jobs to go' as economy shrinks

Economists expect the New Zealand economy to shrink by up to 1.2 per cent this year and the unemployment rate to climb above 6 per cent. Bank economists have updated forecasts for the New Zealand economy over the past week and...
Source: New Zealand Herald - Business | 23 Jan 2009 | 5:00 pm

Potential nuclear sites are named

Four potential sites for new nuclear power stations are proposed as the process for choosing suitable locations begins.
Source: BBC News | Business | World Edition | 23 Jan 2009 | 4:59 pm

NYSE eases minimum market cap rule amid turmoil (AFP)

AFP - The New York Stock Exchange said Friday it was easing temporarily its market capitalization minimum for companies to be listed due to current financial turmoil.

Source: Yahoo! News: Stock Markets News | 23 Jan 2009 | 4:36 pm

Thain Toilet Gets Shout Out From Prez

Obama was talking stimulus packages earlier this morning, when he took a moment to caution that "taxpayer money should not go toward renovating offices." Oh, yes, he went there. It might've been no big deal to the former MER CEO 24 hours ago, but now that he's unemployed, this exactly the sort of stuff that'll get the currently couchbound* John Thain to lean forward** in his sweats, almost spilling his glass*** of Sunny Delight, tell his buddies (Prince, O'Neal) playing XBox in the other room to "shut the fuck up, I want to hear this!" and nudge Cayne to drop the grav-bong**** and turn up the volume.

What was JT feeling when the President publicly slapped him on the wrist? Embarrassment? Shame? None of the above. Pride, my friends. Also getting off on the mention? Charlie Gasparino, who, by several leaps in logic, can now tell people Obama follows his work.

*Green upholstered duchesse c. 1770 ($92,000)
**toward the 55" Sony Bravia LCD flat panel ($6,000)
***Colbalt Blue Drinking Glass from the Michael Graves collection ($960)
****Swarovski-encrusted (not disclosed)

Source: Dealbreaker | 23 Jan 2009 | 4:20 pm

English unrattled by economic task ahead

If Bill English is a deeply worried man it doesn't show. If he is disappointed or frustrated to resume the Finance Minister role after nine long years out of office only to inherit the worst economic crisis for a generation, that...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Liam Dann : Market fears underline size of crisis

To outsiders it must have seemed churlish that markets carried on panicking this week while the rest of the world stood still to watch Barack Obama make history. The Dow Jones Industrial index had its worst Inauguration Day ever,...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Former Merrill Lynch boss ousted in bitter bank battle

NEW YORK - John Thain, the Merrill Lynch boss who orchestrated its fire sale to Bank of America (BoA) at the height of last autumn's financial panic, has been ousted from the company after a vicious run-in with BoA's chief executive,...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Brian Gaynor : Merge with Australia? I don't think so

A potential merger between Australia and New Zealand was one of the talking points over lunch at a Sydney investment conference this week. Several Kiwis expressed the view that the proposal was worth looking at, although the Australians...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Retail revenue boosts Sydney Airport

SYDNEY: Sydney Airport, majority owned by Macquarie Airports, reported that full-year earnings grew by 6.9 per cent, boosted by higher retail revenue. Earnings before interest, tax, depreciation and amortisation grew to A$649.4...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Musicians turn to tech-savvy audience

Musicians and managers are turning to BlackBerry phones and YouTube videos to solve a problem that just won't go away: illegal downloads of digital tracks. At a time when 95 per cent of music downloads are pirated, with few signs...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Diana Clement : You want what? Over my dead body

In the opening scenes of the film Rain Man fast-living Charlie, played by Tom Cruise, finds out that all he inherits from his father is a car. The bulk of the estate goes to an autistic older brother Raymond (Dustin Hoffman). It...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Keeping business all in the family

Your grandfather started a small business as an immigrant to New Zealand. The enterprise prospered and was handed down to your father. When the time came you took over from him, further growing the business and taking it in...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Commodities feeling pinch

CANBERRA: A slump in demand for Australian commodities, particularly from China, will be a major hit for domestic growth and Government revenue, says Treasurer Wayne Swan. Official figures released yesterday showed China's economy...
Source: New Zealand Herald - Business | 23 Jan 2009 | 4:00 pm

Layoffs Watch '09: Madoff Securities

Not sure if it's actually characterized as 'layoff' when your boss is (maybe) going downtown but we can quibble over semantics later. According to our resident Madoff expert, "people on the 17th, 18th, 19th floors started being let go yesterday, continuing this morning...included in the dismissals was Ron Hooey, who was a high paid friend of the Madoffs." No word on whether or not Bernie-boy was there to see them off, though, let's be honest, if he wanted to find a way to be there, he would. Regarding bouncing back, an unlikely rumor has been going around that the legal departments of some big firms have enacted a moratorium against hiring ex-Madoff employees, though we've been told that 3-4 PMs have already secured new jobs.

Source: Dealbreaker | 23 Jan 2009 | 3:59 pm

Data gloom hits markets

Stocks on both sides of the Atlantic fell, with shares in banks and insurers hardest hit in a flight to safety. Wall Street extended a global sell-off and Europe's benchmark share index tumbled to a six-year low. Official data confirmed a deepening and broad-based UK economic downturn
Source: Financial Times - US homepage | 23 Jan 2009 | 3:55 pm

Bank Of Middle-Earth

The folks at Baseline Scenario have a nice walk-through of the problems the banks are facing and the possible fixes. They imagine it Lord of the Rings-style with a "Bank of Middle-Earth" stuck with toxic assets.

Option 1: Bank Mitosis : Bank of Middle-Earth splits into a good bank (Bank of Gandalf) and a bad bank (Bank of Sauron)

Option 2: Little Red Riding Hood fix: Create a "Big Bad Bank" for the bad assets.

As they explain, both solutions have problems.

It's worth mentioning that we're not really in new territory here. The International Monetary Fund deals regularly with countries that have to fix up their banks. Sweden managed it just fine.

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Source: NPR Blogs: Planet Money | 23 Jan 2009 | 3:27 pm

Obama says stimulus on track

President Barack Obama says Congress is on target to approve his $825bn economic stimulus package by 16 February.
Source: BBC News | Business | World Edition | 23 Jan 2009 | 3:20 pm

Oh, Mercy

Leading today's news: Corporate earnings reports.

The Wall Street Journal says, "Earnings gloom sinks stocks." Economist Nouriel Roubini says slowing demand from China will force stock prices down all over the world.

Layoffs are piling up, with cuts at major outfits like Microsoft, Intel and Digg. Still very little news about what a union official calls nearly 3,000 layoffs at IBM, which posted a 12 percent jump in profits this week. You can peek in on the layoffs in real time on the union website.

P.S. Y'all out there made the big time this morning. David Kestenbaum turned some of the indicators you've been sharing with us on the podcast into a radio segment for Morning Edition. Send more, please.

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Source: NPR Blogs: Planet Money | 23 Jan 2009 | 3:07 pm

White House Pay Freeze

The Washington Post ran the numbers on how much Obama's freeze on White House salaries over $100,000 actually adds up to. Answer: $443,000 next year.

Here's a list of some salaries from last year. Josh Bolton (Chief of Staff) was making $172,000. Staff assistants were making $34,000.

The LegiStorm website lists Congressional salaries, though it seems to be having technical problems as I post this.

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Source: NPR Blogs: Planet Money | 23 Jan 2009 | 3:03 pm

Satyam Tries To Save Itself (SAY)

Source: 24/7 Wall St. | 23 Jan 2009 | 2:57 pm

China, Seen From The 100th Floor

Empty office elevators are one symptom of China's real estate problems. NPR's Louisa Lim reports on the deceptively beautiful view from the world's highest observation deck in Shanghai.

"Behind these gleaming glass facades, all is not well. Shanghai's real estate market is slumping."

You can also hear her report on why China is not happy with 7% growth last quarter.

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Source: NPR Blogs: Planet Money | 23 Jan 2009 | 2:47 pm

Harley's Roadkill Earnings (HOG)

Source: 24/7 Wall St. | 23 Jan 2009 | 2:28 pm

Citi Initiates Coverage on MasterCard (MA) with a Sell; Prefers Visa (V) Over American Express (AXP)

Citi initiates coverage on MasterCard (NYSE: MA) with a Sell and initiates coverage on Visa (NYSE: V) with a Hold, citing decelerating consumer spending due to the global recession.

Citi analyst says, "While we are positive on the business models longer term, we believe the companies will face headwinds from decelerating consumer spending due to the global recession and deleveraging by the U.S. consumer

Read more...

AXP, MA, V

Source: 24/7 Wall St. | 23 Jan 2009 | 2:25 pm

Harley-Davidson cuts production

The motorcycle manufacturer Harley-Davidson is to close plants and cut 1,100 jobs after reporting worse-than-expected results.
Source: BBC News | Business | World Edition | 23 Jan 2009 | 2:12 pm

Balancing the Books

If Jones Apparel Group's $810 million noncash writedown for goodwill and trademarks is any guide, accountants might exact an even bigger toll on fourth-quarter profits than stingy consumers.

Jones said Thursday that the aftertax charge, related mostly to its acquisitions of Nine West and Maxwell Shoe Co., and retail weakness would result in losses of $10.07 to $10.11 a share for the quarter, down from losses of $1.01 a year ago.

And Jones isn't alone. Fashion companies of all stripes could post far steeper losses than weak sales would dictate as they write down goodwill. Simply put, goodwill is the valuation placed on assets from acquisitions and needs to be adjusted on a regular basis to keep market capitalization and shareholders’ equity in relative balance.

While it often doesn't reflect the true health of a company, it's important because it can have a major impact on loan terms and other fiscal instruments.

Possible writedowns ahead for some, including Macy's Inc. and Sears Holdings Corp., could reach into the billions of dollars. For example, Sears has goodwill of $1.66 billion; Liz Claiborne Inc., $676.8 million; Oxford Industries Inc., $248.6 million; Casual Male Retail Group Inc., $63.1 million; Destination Maternity Corp., $50.4 million, and Hartmarx Corp., $38.8 million.

Firms are required to evaluate the goodwill on their books annually. And even if it's not time for their scheduled review, many companies might decide to take a second look this quarter given accounting rules that could view the economic downturn as a triggering event, said Steve Barr, spokesman at auditor PricewaterhouseCoopers.

"It's reasonable to expect that, given the current economic environment, we will see companies evaluating goodwill impairments," he said.

For many, it will amount to an accounting insult after financial injury caused by the recession.

Even without the charge, Jones said 2008 earnings would be less than previously projected. The company also took steps to save about $33 million annually and reduced its quarterly dividend to 5 cents a share from 14 cents. Without going into specifics, the company said it would cut staff and eliminate unprofitable divisions.

"While our previous guidance considered the difficult retail environment prevailing at that time, conditions significantly worsened as the quarter ended," said Wesley Card, president and chief executive officer. "The resulting increase in promotional activity by our customers and in our own retail operations impacted our results."

Without the charge, Jones said adjusted fourth-quarter losses from continuing operations would range from 3 to 6 cents, where analysts were looking for a loss of a penny. Adjusted earnings for the year are slated for 85 to 88 cents a share, down from the 93 to 98 cents the company previously projected.

The firm also cut its planned capital spending to $45 million this year from about $70 million in 2008. At the end of the year, Jones had approximately $335 million in cash on hand.

The company declined to elaborate.

Investors pushed shares of the firm down 48 cents, or 11.8 percent, to $3.60 on Thursday.

Jones' flagging stock price—the issue is down 83.7 percent from its 52-week high of $22.12, reached on Sept. 8—is partially to blame for the quarter's charge.

"As a result of the extremely challenging market conditions and the resulting decline in our stock price, we were required under the accounting rules to record noncash goodwill and trademark impairment charges in the fourth quarter," said John McClain, chief financial officer.

Many other companies could get caught in the same vise and opt to write down goodwill, a balance sheet stand-in for intangible assets such as brand names and business reputations that were picked up through acquisitions.

How pressing such write-offs are is an open question.

"While this is important, it’s not a cash charge—it's an accounting charge," said David Botwinick, managing director at MHM Mahoney Cohen, CPAs, speaking generally. "It's all on paper. What it means is interpreted by the person it"s important to."

 Even if beauty, or economic unsightliness, is in the eye of the beholder, such charges can trigger important provisions in loan agreements or cast in a new light deals that were inked when the market was at a high.

"It doesn't mean the acquisition was bad strategically," said Ed Henderson, vice president and senior analyst at Moody’s Investors Service. "Given this market, it just looks like almost everybody overpaid. The amount that is reflective of that is goodwill."

Macy's, which used to be known as Federated Department Stores, could have one of the quarter's largest write-offs. Or the firm's accountants might also determine that charges are not needed.

When Macy's purchased rival May Department Stores in 2005, it took on $12 billion in debt and acquired assets valued at $23.79 billion. Among the assets, stores, inventory and other physical assets were worth $14.2 billion. So Macy's, as accounting standards dictate, classified much of the remainder as either goodwill—$8.95 billion—or intangible assets—$679 million. As of Nov. 1, Macy's had goodwill of $9.12 billion on its balance sheet.

The financial crisis, the recession and Macy's performance drove the value of all of its shares down to a total of $3.95 billion Thursday, meaning the firm’s accountants might have to wipe away a big chunk of its goodwill to restore balance to its finances.

For example, earlier this month, grocery chain Supervalu Inc. registered a $2.9 billion loss for its third quarter, the result of a $3.1 billion aftertax charge to write down goodwill and intangible assets. On a smaller scale, Claiborne's loss of $435.7 million in the fourth quarter of 2007 was driven by a $343.1 million goodwill charge.

A large charge could have been a serious problem for Macy's, but the firm renegotiated its bank agreement in December so a writedown for goodwill would not impact its access to credit.

With the credit markets tied up in knots, refinancing has been more expensive and difficult to execute. Macy’s had to pay lenders a fee to amend its credit arrangement, while agreeing to higher fees and interest rates. Other firms, including Claiborne and Jones, recently refinanced to smaller, more expensive credit deals. Claiborne's eliminated leverage and asset coverage covenants, while Jones’ covenants were "adjusted to provide Jones with greater flexibility in the operation of its businesses during these unprecedented economic times," the company said in December. Failure to conform to performance covenants in credit arrangements can result in termination of credit lines or force companies to renegotiate them.

If Macy's does end up taking a goodwill writedown, it might take the opportunity to do some additional housecleaning.

"There is a chance that, if they announce a writedown, that they would close stores in conjunction with that," said Deborah Weinswig, equity analyst at Citigroup Global Markets, noting the retailer could shutter at least another 50 of its 848 stores. Macy’s recently said it would close 11 locations, and Weinswig said it could also consolidate its four Macy’s divisions into one unit this year.

Although a big writedown might make for 10-digit losses, Wall Street would probably not be fazed since the company rejiggered its credit agreement.

"I don’t think this would catch people by too much surprise," Weinswig said. "If this is part of a new, longer-term strategy, I think investors would applaud it, whatever that strategy might be."Related Links
Holiday Hangover
Big Stores, Big Woes
A Buyout of Macy's?



Source: Portfolio.com: Top 5 | 23 Jan 2009 | 1:30 pm

EU gives boost to dairy exports

The 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