Caterpillar could hurt stocks

U.S. stocks were set to open mixed Monday, after disappointing earnings from the heavy equipment manufacturer Caterpillar overshadowed the $68 billion Pfizer-Wyeth merger.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 1:29 pm

Unemployment Start To Track To 9%: Sprint (S) Fires 8,000 (VOD)(VZ)(T)

Sprint (S) weakened by an eroding position in the US cellular business as it losses subscribers to Verizon Wireless (VZ)(VOD) and AT&T (T) and rocked by the broadening recession, fired another 8,000 people today, a horrible bookend to the 20,000 Caterpillar (CAT) cut earlier in the day.

According to the company, Sprint "will take actions in the first quarter of 2009 to reduce internal and external labor costs by approximately $1.2 billion on an annualized basis. The actions include the elimination of approximately 8,000 positions within the company, which is expected to be largely completed by March 31."

It is a good bet that the firm's fourth quarter numbers will be awful.

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 1:27 pm

Caterpillar says to cut 20,000 jobs

CHICAGO (Reuters) - Caterpillar Inc said on Monday that quarterly earnings fell more than 32 percent and warned of a tough year ahead as the downturn that began in the United States metastasized into a full-blown global recession that hit sales of its earth-moving equipment.
Source: Reuters: Business News | 26 Jan 2009 | 1:21 pm

Caterpillar says to cut 20,000 jobs (Reuters)

Reuters - Caterpillar Inc said on Monday that quarterly earnings fell more than 32 percent and warned of a tough year ahead as the downturn that began in the United States metastasized into a full-blown global recession that hit sales of its earth-moving equipment.

Source: Yahoo! News: Business | 26 Jan 2009 | 1:21 pm

McDonald's (MCD): No Longer On Steroids, Stock Off On Earnings

The need for more and more people to have inexpensive and convenient food may be tailing off.McDonald's (MCD) fourth quarter results were lackluster. .

Net income fell 23% to $985 million.

Total revenue was off 3% to $5.6 billion.

Global comparable sales increase of 7.2%, fueled by the U.S. 5.0%,, Europe 7.6% and Asia/Pacific, Middle East and Africa 10.0%

"McDonald's begins 2009 with six years of momentum, a business model that has delivered even in challenging economic conditions and January sales that remain strong>"

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 1:18 pm

McDonald's (MCD): No Longer On Steroids, Stock Off On Earnings

The need for more and more people to have inexpensive and convenient food may be tailing off.McDonald's (MCD) fourth quarter results were lackluster. .

Net income fell 23% to $985 million.

Total revenue was off 3% to $5.6 billion.

Global comparable sales increase of 7.2%, fueled by the U.S. 5.0%,, Europe 7.6% and Asia/Pacific, Middle East and Africa 10.0%

"McDonald's begins 2009 with six years of momentum, a business model that has delivered even in challenging economic conditions and January sales that remain strong>"

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 1:17 pm

Pfizer acquires Wyeth for $68bn

US drugmaker Pfizer is to buy rival Wyeth in a deal worth $68bn (£50bn), the two companies announce.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 1:17 pm

Stocks signal mixed open on Caterpillar comments (AP)

AP - Wall Street turned cautious Monday as downbeat comments from Caterpillar about the health of its business weighed on the market's enthusiasm over Pfizer's $68 billion acquisition of rival Wyeth.

Source: Yahoo! News: Stock Markets News | 26 Jan 2009 | 1:14 pm

Stocks signal mixed open on Caterpillar comments

Wall Street turned cautious Monday as downbeat comments from Caterpillar about the health of its business weighed on the market's enthusiasm over Pfizer's $68 billion acquisition of rival...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:14 pm

Weatherford net income climbs 5% despite slowdown

Weatherford International manages to hammer out a 5% gain in fourth-quarter net income on an increase in its North American oil and gas rig business, bucking the trend for lower profits in the oil service arena.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 1:11 pm

Iraq agrees to pay Kuwait Airways $300 million

The Iraqi government says it will pay $300 million in compensation to Kuwait Airways Corp. for claims related to Saddam Hussein's 1990 invasion of the neighboring emirate. Government...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:10 pm

Barclays shares rebound after reassuring on capital

Shares in Barclays surge as much as 75% after the group again moves to reassure investors it desn't need more capital, while French rival BNP Paribas says it will take more cash from the government following a 1.4 billion euro ($1.8 billion) loss in the latest quarter.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 1:09 pm

Kimberly-Clark posts 8 percent lower 4Q profit

Kimberly-Clark says a stronger dollar and higher spending on marketing caused fourth-quarter profit to slip 8 percent as consumers also scaled back on spending in a tough economy. The...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:08 pm

Footwear chains in administration

High Street shoe shop chains Barratts and PriceLess have gone into administration, it has been announced.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 1:08 pm

Caterpillar posts 32 pct drop in 4Q earnings

Heavy equipment maker Caterpillar Inc. says its fourth-quarter earnings tumbled 32 percent, hurt by higher operating costs and a global economic downturn that curbed demand for its...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:08 pm

Iceland's government could topple

Iceland's political leaders held talks Monday to try to avoid the breakup of the country's coalition government. Prime Minister Geir Haarde's fragile grip on power rests on the outcome...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:08 pm

Halliburton net falls on charge tied to DOJ settlement

Halliburton Co. says fourth-quarter earnings fall even as sales increase after the oil service giant reaches a tentative $382 million settlement with U.S. regulators tied to investigations into alleged bribes paid to officials in Nigeria.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 1:04 pm

Caterpillar Run Over By Own Tracks (CAT)

Source: 24/7 Wall St. | 26 Jan 2009 | 1:03 pm

Pfizer buying Wyeth for $68 billion in cash and stock

Pfizer reaches agreement to buy drug-making rival Wyeth for $68 billion with the aim of restocking its producti pipeline, as the blue-chip component also reports a 90% decline in fourth-quarter net profit.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 1:03 pm

FTSE-100 share index up 33.78 points at 4,086.25 (AP)

AP - Share prices on the London Stock Exchange were higher at midday Monday.
Source: Yahoo! News: Stock Markets News | 26 Jan 2009 | 1:02 pm

FTSE-100 share index up 33.78 points at 4,086.25

Share prices on the London Stock Exchange were higher at midday Monday. At midday, the FTSE-100 share index was up 33.78 points at 4,086.25.
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:02 pm

Pfizer to buy Wyeth for $68 billion

Pfizer announced Monday that it has signed a deal to acquire the smaller drugmaker Wyeth for $68 billion.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 1:01 pm

US dollar mixed, gold up in morning trading

The U.S. dollar was mixed against other major currencies in European trading Monday morning. Gold rose. The euro traded at $1.2981, up from $1.2974 late Friday in New York. Other...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 1:01 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 1:01 pm

Tajiks face electricity rationing in capital city

Energy officials in electricity-starved Tajikistan say strict rationing of power supplies may soon be introduced in the capital city, Dushanbe. Deputy Energy Minister Pulodov Muhiddin...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 12:59 pm

EIB asked to help finance Nabucco pipeline project

BUDAPEST, Jan 26 (Reuters) - The European Investment Bank (EIB) has been asked by the Nabucco pipeline consortium to help finance the project but the bank needs more information before making a decision,...
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 12:59 pm

Grainger Reports Record Sales of $6.9 Billion and Earnings Per Share of $6.04 for the Year Ended December 31, 2008

2008 Highlights - Sales of $6.9 billion, up 7 percent, 6 percent on a daily basis - EPS were $6.04, up 22 percent - Earnings for the year include two unusual items totaling
Source: RSS feed - channel BNewsBusiness | 26 Jan 2009 | 12:59 pm

Indications: U.S. stock futures flattish as Caterpillar warns, Pfizer deals

U.S. stock futures were flattish Monday as Caterpillar lowered its earnings outlook and as the biggest drug sector deal since 2000 was unveiled.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 12:59 pm

Brown warns against 'pessimism'

The economic crisis should be treated as "the difficult birth-pangs of a new global order", Gordon Brown says.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 12:57 pm

London Markets: Barclays shares surge in higher London; FTSE 100 up 1.5%

Barclays shares surge in London, taking back a portion of losses made by the lender since the start of the year, with the gains helping the top London share index to advance more than 1%.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 12:54 pm

Futures lose ground on Caterpillar comments (Reuters)

Reuters - Stock index futures cut gains on Monday as worrying outlook comments from bellwether Caterpillar Inc offset enthusiasm about a multi-billion dollar takeover in the pharmaceutical industry. Caterpillar, a maker of bulldozers and excavators, forecasts 2009 profit to drop significantly from 2008. The company also says it initiated actions which will remove about 20,000 workers from its business.

Source: Yahoo! News: Business | 26 Jan 2009 | 12:51 pm

Futures lose ground on Caterpillar comments

NEW YORK (Reuters) - Stock index futures cut gains on Monday as worrying outlook comments from bellwether Caterpillar Inc offset enthusiasm about a multi-billion dollar takeover in the pharmaceutical industry. Caterpillar, a maker of bulldozers and excavators, forecasts 2009 profit to drop significantly from 2008. The company also says it initiated actions which will remove about 20,000 workers from its business.
Source: Reuters: Business News | 26 Jan 2009 | 12:51 pm

Futures lose ground on Caterpillar comments (Reuters)

Reuters - Stock index futures cut gains on Monday as worrying outlook comments from bellwether Caterpillar Inc offset enthusiasm about a multi-billion dollar takeover in the pharmaceutical industry. Caterpillar, a maker of bulldozers and excavators, forecasts 2009 profit to drop significantly from 2008. The company also says it initiated actions which will remove about 20,000 workers from its business.

Source: Yahoo! News: Stock Markets News | 26 Jan 2009 | 12:51 pm

Economy's on strike

Everyone knows that the economy was in sad shape during the final three months of 2008. On Friday, we'll find out just how bad the fourth quarter was.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 12:50 pm

Jim Rogers says pound may approach dollar parity

SINGAPORE (Reuters) - Jim Rogers, one of the world's best known investors, said on Monday the pound could fall near parity with the dollar in coming years given Britain's increasing debt and lack of economic growth drivers.
Source: Reuters: Business News | 26 Jan 2009 | 12:49 pm

Philips posts first loss since 2003, axes 6,000 jobs

AMSTERDAM (Reuters) - Writedowns of more than 1 billion euros pushed Philips Electronics deep into the red in the fourth quarter, and it will cut 6,000 jobs to cope with a steep downturn that has hurt its consumer business.
Source: Reuters: Business News | 26 Jan 2009 | 12:46 pm

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

Among the companies expected to trade actively on Monday are three Dow industrials components -- Caterpillar, McDonald's and American Express -- plus Texas Instruments, all of which are scheduled to report earnings. Other movers include Covidien, Crucell, Danaher, Eaton, First California, Pfizer, Smurfit-Stone, Walgreen and Wyeth.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 12:45 pm

Opening Bell: 01.26.09

BofA had role in Merrill bonuses (FT)
It appears the attempt to scapegoat Thain over the bonus debacle has failed miserably, and if anything come back to bite the bank in their collective asses. FT has it that not only did the bank know about the bonuses, but that they consulted on when and how the payouts should be approached, moving the structure from 60/40 cash/stock to 70/30 which is in like with BAC's payout structure.

It looks like the southern-based-bank skipped the classes on how to set up a fall guy; I can promise you one of the initial steps is "don't leave a paper trail proving you actually did all the work you're getting him to take the fall for." It's actually up there in importance with "wear a black mask when robbing a bank" and "never give the cops your real drivers license when faking your death post plane crash."

Barclays: "We're Okay. No Really, We're Great." (Bloomberg)
Though there are those that would disagree, Barclays may find its way to being the one solvent major British bank. While it's true the bank has written down $11B, they're now saying they exceed capital requirements by £17B and that they're going to report record revenue.

Icahn Continued Battle With Steel Partners (Reuters)
The story goes like this: Steel Partners gated redemptions last fall, which trapped a metric ton of Icahn's cash. Icahn calls them, asks for his cash back politely; they said they'd get back to him - something about putting together a plan by February. Then, last week, Steel Partners announced they were planning on going public - which is when Icahn went shit-pot crazy and started screaming about Steel Parteners pulling a bait and switch.

You have to ask yourself what you would do in a situation like this: Sue? A Press Release/Positioning Statement? Write a letter and put it out on the wires (PRNewswire) calling for the other investors at Steel Partners to give you a call at his office so they can co-ordinate how to go forward?

Icahn went for the lawsuit and the press release, and the world's a better place.

Source: Dealbreaker | 26 Jan 2009 | 12:42 pm

Another Lay-off Shock: Caterpillar (CAT) To Cut 20,000

Caterpillar (CAT) said it had a good year in 2008 and even a reasonable fourth quarter. But, its prospects for this year are so bad that it will dump 20,000 people, an astonishing number.

CAT released sales and revenues of $51.3 billion for 2008, up 14% from 2007. Profit per share was $5.66, up 5% and profit after tax of $3.5 billion was about flat with 2007. The company also reported record fourth-quarter sales and revenues of $12.9 billion, 6% higher than the fourth quarter of 2007. Profit per share for the quarter was $1.08, down 28% from the fourth quarter of 2007.

CAT admitted that it could not even call the depth of the recession. The company said "Global economic conditions and key commodity prices have continued to decline significantly. Financial markets remain under stress, and our expectations for 2009 have deteriorated. Uncertainty around the depth and duration of this recession makes it very difficult to forecast sales and revenues."

If lay-offs of this magnitude continue, unemployment will be 9% going into the second quarter.

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 12:42 pm

Stories from the recession's frontline

Rhode Island is a tiny state with big problems. With just over one million residents, it ranks in the top 10 in terms of foreclosure, unemployment and state budget crunches.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 12:41 pm

Philips posts first loss since 2003, axes 6,000 jobs (Reuters)

Reuters - Writedowns of more than 1 billion euros pushed Philips Electronics deep into the red in the fourth quarter, and it will cut 6,000 jobs to cope with a steep downturn that has hurt its consumer business.

Source: Yahoo! News: Business | 26 Jan 2009 | 12:39 pm

ING CEO quits after 4Q loss, new state aid (AP)

AP - Bank and insurer ING Group NV said Monday it will book a large fourth quarter loss, cut 7,000 jobs and change its CEO. It also said the Dutch government will assume the risk for most of euro27.7 billion ($35.8 billion) in troubled U.S. mortgage-backed securities ING owns.
Source: Yahoo! News: Business | 26 Jan 2009 | 12:36 pm

Jim Rogers says pound may approach dollar parity (Reuters)

Reuters - Jim Rogers, one of the world's best known investors, said on Monday the pound could fall near parity with the dollar in coming years given Britain's increasing debt and lack of economic growth drivers.

Source: Yahoo! News: Business | 26 Jan 2009 | 12:36 pm

France eyes airline stimulus plan

The French finance ministry is set to provide 5bn euros in credit guarantees to encourage lending to the airline industry.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 12:35 pm

Pfizer to buy Wyeth for $68 billion, cuts dividend

NEW YORK (Reuters) - Pfizer Inc, the No. 1 drugmaker, said on Monday that it would acquire U.S. rival Wyeth for about $68 billion in a move to diversify its revenue base.
Source: Reuters: Business News | 26 Jan 2009 | 12:25 pm

Pfizer to buy Wyeth for $68 billion, cuts dividend (Reuters)

Reuters - Pfizer Inc, the No. 1 drugmaker, said on Monday that it would acquire U.S. rival Wyeth for about $68 billion in a move to diversify its revenue base.

Source: Yahoo! News: Business | 26 Jan 2009 | 12:19 pm

Ulster Bank to lay off 750 staff

More than 700 jobs are to be lost at the Ulster Bank in Northern Ireland and the Republic as part of a cost-cutting plan.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 12:11 pm

European stocks rise, led by banks (AP)

AP - European markets rose Monday despite a drop in Asia, with an upbeat trading report by Barclays sending its shares up a stunning 65 percent and boosting investors' confidence in the ailing banking sector.

Source: Yahoo! News: Stock Markets News | 26 Jan 2009 | 12:10 pm

Top Pre-Market Analyst Upgrades (GSK, JPM, LEAP, MS, NLS, PSO, PETM, TOT)

These are some of the top pre-market analyst upgrades we have seen early this Monday morning with more than two and a half hours to the market open:

• GlaxoSmithKline (GSK) Started as Buy at Jefferies.
• JPMorgan Chase (JPM) Started as Buy at Goldman Sachs.
• Leap Wireless (LEAP) Raised to Outperform at Baird.
• Morgan Stanley (MS) Raised to Buy at Goldman Sachs.
• Nautilus (NLS) Raised to Neutral at Merriman Curhan Ford.
• Pearson (PSO) Raised to Neutral at JPMorgan.
• PETsMART (PETM) Raised to Buy at Goldman Sachs.
• Total (TOT) Raised to Buy at Bank of America Merrill Lynch.

Jon C. Ogg
January 26, 2009

Source: 24/7 Wall St. | 26 Jan 2009 | 12:06 pm

Top Pre-Market Analyst Downgrades (BAC, BBBY, BHP, C, CNH, LECO, SNY, USB)

These are some of the top pre-market analyst downgrades and negative calls from Wall Street we have seen early this Monday morning with more than two and a half hours to the market open:

• Bank of America (BAC) Cut to Neutral at Goldman Sachs.
• Bed Bath & Beyond (BBBY) Cut to Underweight at JPMorgan.
• BHP Billiton (BHP) Cut to Hold at Citigroup.
• Citigroup (C) remains a Sell at Goldman Sachs.
• CNH Global (CNH) Cut to Underweight at JPMorgan.
• Lincoln Electric (LECO) Cut to Sell at Piper Jaffray.
• Sanofi-Aventis (SNY) Started As Underperform at at Jefferies.
• USBancorp (USB) Cut to Sell at Goldman Sachs.

Jon C. Ogg
January 26, 2009

Source: 24/7 Wall St. | 26 Jan 2009 | 12:04 pm

Europe Markets: Barclays, ING lead Europe stocks higher

Barclays and ING shoot higher Monday to lead Europe stocks, as two of Europe’s largest banks say they won't further dilute their equity.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 12:03 pm

Jon Friedman's Media Web: Sharon Waxman launches Hollywood Web site

Former New York Times entertainment reporter Sharon Waxman is bringing Hollywood to the Web.

Source: MarketWatch.com - Top Stories | 26 Jan 2009 | 12:00 pm

BofA's Ken Lewis in the hot seat

Bank of America CEO Ken Lewis is quickly learning just how lonely life at the top can really be.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 11:59 am

ING seeks state aid as losses soar

The Dutch financial group announced losses on financial products of €2bn for the fourth quarter, prompting it to cut 7,000 jobs and seek fresh government funding as well as replace its chief executive
Source: Financial Times - US homepage | 26 Jan 2009 | 11:59 am

Indian police arrest two PwC partners

Two partners of PricewaterhouseCoopers (PwC), the auditor of the fraud-hit Satyam Computer Services, have been arrested by Indian police.
Source: Latest Business News from Times Online | 26 Jan 2009 | 11:54 am

Barclays warns of £8bn credit writedown

The UK lender sought to reassure investors as it warned writedowns would total £8bn this year but said it would make profits of more than £5bn following the acquisition of Lehman's North American business
Source: Financial Times - US homepage | 26 Jan 2009 | 11:50 am

European banks see losses, announce job cuts

PARIS/AMSTERDAM (Reuters) - Crisis-hit European banks announced losses and job cuts on Monday, including a shake-up at Dutch financial group ING and a worse-than-expected final quarter from top French bank BNP Paribas.
Source: Reuters: Business News | 26 Jan 2009 | 11:48 am

Barclays letter causes share jump

Shares in Barclays jump more than 60% after its bosses write an open letter to reassure investors of the bank's health.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 11:42 am

What would you do with $500?

Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 11:42 am

Corus to cut 2,500 UK jobs and reduce output

Corus, Britain's biggest steelmaker, today confirmed its employees' worst fears by announcing a £600 million cost-cutting programme that will cost about 3,500 jobs, including 2,500 in the UK.
Source: Latest Business News from Times Online | 26 Jan 2009 | 11:39 am

Pfizer seals $68bn Wyeth purchase

Pfizer is nearing agreement on a deal to buy Wyeth, a rival drug maker, for about $67bn as it attempts to address concerns over its ability to offset upcoming patent expirations on its blockbuster drugs
Source: Financial Times - US homepage | 26 Jan 2009 | 11:39 am

Yahoo! (YHOO) CEO Comes To Market With Game Plan

Yahoo!'s (YHOO) new CEO, Carol Bartz, gets to run the company's earnings cal this week. The results from the fourth quarter will probably be bad. It is hard to imagine how the forecast for 2009 will be better.

Bartz has already indicated that she is not in favor, at least for now, of selling the company's search business to Microsoft. She may think she can pick up search share on Google (GOOG).If that is an accurate reflection of her strategy, she does not have many options for improving Yahoo!'s margins this year or improving its balance sheet. That is, unless she is willing to do radical surgery.

According to The Wall Street Journal, "Analysts and investors want to see a lot more cost-cutting and a plan for winning back business the Internet icon has lost to Google and a broad array of rivals.:

To improve its balance sheet, Yahoo! may elect to sell off its piece of Chinese e-commerce company Alibaba and its share of Yahoo! Japan, It a bad economy, it is hard to say how much these would fetch.

For the time being, that leaves cutting costs which almost certainly will involve cuts of a very llarge potion of the 13,000 people Yahoo! employs.

If the "Lose Weight In 30 Days" advertising running all over Yahoo! sites are any indication, advertisng is way down this year. The only way to offset that is to fire several thousand people.

Douglas A> McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 11:33 am

Smurfit-Stone files for chapter 11 bankruptcy

(Reuters) - Smurfit-Stone Container Corp , a major corrugated packaging maker, said its U.S. and Canadian operations filed for chapter 11 bankruptcy protection to restructure its debt.
Source: Reuters: Business News | 26 Jan 2009 | 11:27 am

Leaders to flock to Davos to discuss economic crisis

ZURICH (Reuters) - Political leaders and central bankers will dominate this week's annual Davos forum as a chastened business elite is sidelined in the drive to reboot the world economy, improve global security and slow climate change.
Source: Reuters: Business News | 26 Jan 2009 | 11:24 am

The Netbook Breaks The PC Industry's Back (AMD)(INTC)(HPQ)(DELL)(MSFT)

Many PC analysts thought that the "netbook" would be a toy. Sitting someplace between regular laptops and smartphones, the little PCs would not have the processing power and screen sizes to be useful to most consumers.

The netbook does have one advantage. Most cost about $300. But, experts assumed that the products would be a second computer that individuals and businesses would use for travel or taking to meetings for keeping notes and checking the internet.

As it turns out, netbooks have perfectly adequate processing power and their screens can even be used by the elderly as long as they use reading glasses. At low prices points, a netbook is an ideal way to replace an aging PC during a recession.

Accordng to The New York Times, "The only bright spot in the PC industry is netbooks. Analysts at the Gartner research company said shipments rose to 4.4 million devices in the third quarter of 2008, from 500,000 units in the first quarter of last year."

While no one in the PC, software, or processor industries is saying, is that making money on netbooks has to be a challenge. How much margin can there be in a machine that costs less to buy than many cellphones.

The PC industry has to face up to the fact that people who can't afford to drive use bicycles. And, usually they work just fine.

Margins at companies like Intel (INTC), AMD (AMD), HP (HPQ), Dell (DELL), and Microsoft (MSFT) are about to be squeezed.

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 11:23 am

Steel firm Corus cuts 3,500 jobs

Steelmaker Corus confirms that it is cutting 3,500 jobs, including 2,500 in the UK, as it responds to falling global demand and prices.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 11:20 am

New doubts about a once sure bet

Retirement investors have long viewed annuities as an effective way to protect their nest egg. But the recent financial crisis has highlighted an inherent paradox: While annuities offer safety and guarantees, their benefits are tied to the financial strength of an insurer. If the company fails, you could be looking at a loss in the very part of your portfolio that you were counting on to be rock solid.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 11:14 am

France's BNP sees quarterly loss

French bank BNP Paribas expects a 1.4bn euro ($1.8bn, £1.5bn) net loss in the fourth quarter of 2008.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 11:11 am

Detroit's Plans Face Harsh Reality As Toyota (TM) Makes Huge Cut Forecast

Toyota (TM) is the most successful car company in the world based on any important measurement. It is No.1 in global sales, profits, and has an impressive balance sheet especially in contrast to any of The Big Three.

Toyota began to admit it has severe problems two months ago as it cut production and forecasts for sales in it home market and the US. Then the firm's board replaced the car company's CEO.

The latest and most significant news out of the large Japanese company is that it is targeting production and sales worldwide for this year at a level 20% below 2008. According to Reuters, "It would be the carmaker's lowest production volume since 2003 and 2004." But, the number may be misleading. Toyota had a smaller share of worldwide sales four years ago. That magnifies the bad news about its cuts in manufacturing

The news should send shudders up and down the spins of Congress and the management at US car companies. The recovery of Detroit is based on three simply assumptions. The first is that The Big Three can cut costs so that they can break even at 12 million domestic vehicle sales. The second is that the US market can support 12 million US vehicle sales in 2009. And, the third is that the profitable businesses American car companies have in places like Latin America and Asia can maintain their operating incomes. It turns out that the Toyota plans may mean that sales assumption for both the US region and those overseas are much too optimistic.

If Toyota plans a 20% cut in production this year, the American car company turnaround is in more trouble than Congress or the firms themselves are admitting.

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Jan 2009 | 11:09 am

Bank mortgage approvals halved

The number of new mortgages for house buyers approved by the UK's banks fell last year by 52%.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 11:00 am

Oil falls despite Opec output cut

Oil prices fall after a three-day rally, as economic worries outstrip a promised output cut by producers' cartel Opec.
Source: BBC News | Business | World Edition | 26 Jan 2009 | 10:58 am

ING chief 'too tired' to go on as losses grow

ING, the Dutch financial giant, announced the departure today of its chief executive and 7,000 job losses as it posted a fourth-quarter deficit of €3.3 billion (£3.1 billion)
Source: Latest Business News from Times Online | 26 Jan 2009 | 10:55 am

Icelandic Commerce Minister falls on his sword

The Icelandic Commerce Minister handed in his resignation yesterday as fallout from the country's abrupt economic collapse continued unabated.
Source: Latest Business News from Times Online | 26 Jan 2009 | 10:48 am

Toyota sees 2009 global output down 20 percent: report

TOKYO (Reuters) - Toyota Motor expects to produce 6.5 million vehicles globally on a parent company basis this year, down more than 20 percent from an estimated 8.2 million last year, the Chunichi newspaper reported.
Source: Reuters: Business News | 26 Jan 2009 | 10:25 am

Model multitasking: From runway to sales floor

Times are tough in the modeling industry, but during the two months following the Wall Street meltdown, a small agency called Eye5 saw its revenue spike to $114,000 from $65,000 in the same period the year before. How did that happen?
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 9:37 am

Wolseley sheds more staff amid 66% profit fall

Shares in Wolseley, the building supplies group, slid sharply this morning after it warned that profits had collapsed by two thirds because of poor trading and adverse currency movements.
Source: Latest Business News from Times Online | 26 Jan 2009 | 9:24 am

U.S. bankers avoid glitz of Davos, image a concern (Reuters)

Reuters - It used to be a prized invitation for Wall Street CEOs and top government officials. But for the U.S. banking elite, a ticket to this year's World Economic Forum in Davos risks becoming as toxic as the mess left over from the subprime mortgage crisis.
Source: Yahoo! News: Business | 26 Jan 2009 | 9:20 am

Geithner vote looms on Capitol Hill

The Senate is set to meet Monday evening to vote on Tim Geithner's nomination as the next Treasury Secretary. Senate Majority Leader Harry Reid of Nevada has said he expects to hold a vote at 6 p.m. ET.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 9:08 am

Philips swings to first quarterly loss since 2003

The electronics group saw a fourth quarter net loss of €1.5bn, its first quarterly loss since 2003, on writedowns on some of its stakes and acquisitions
Source: Financial Times - US homepage | 26 Jan 2009 | 8:03 am

Poizner goes too easy on insurers

Government regulators ambitious for higher office face an interesting quandary: how to come down hard on the wrongdoers in their jurisdiction so they look tough to the public, but not so hard that they...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Pfizer could pay $68 billion for Wyeth

An agreement between the drug makers might be announced Monday. It would be the largest acquisition in five years for the industry. ...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

U.S. weighs strategies to stem home foreclosures

The Obama administration hopes to promote refinancing without rewarding those who were irresponsible. The Obama...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Using online social networks to market a new business

Dear Karen: I started a small business from my home selling designer hats. How do I get the word out?
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Oscar contenders get a boost at box office

Best-picture nominees draw weekend crowds but can't steal No. 1 from 'Paul Blart: Mall Cop.' A nod from Oscar...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Obama clearing way for California emissions waiver

The president will ask the EPA today to allow states to set their own, stricter rules for auto emissions, sources say. ...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

At 70, celebrated inventor's start-up makes progress with Pentagon

C. Kumar Patel left retirement to be an entrepreneur. He's remained confident, though he's had to be flexible. ...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Small businesses finding solutions amid recession

Firms are boosting customer service and rethinking their business models and products to survive and even grow. ...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

How to find the nearest Postal Service mailbox

Bookmarks Finding the nearest U.S. mailbox www.usps.com When you have a letter or a bill to mail, sometimes all you need is a U.S. Postal Service mailbox.
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Investors await earnings, Fed assessments

As Wall Street waits for Congress to act on President Barack Obama's stimulus plan, investors will look to a slew of earnings reports and comments from the Federal Reserve this week for clues on when the...
Source: RSS feed - channel BNPaperBusiness | 26 Jan 2009 | 8:00 am

Cattles withdraws banking licence application

Cattles, the embattled sub-prime and doorstep lender, has suffered a fresh setback after being forced to withdraw its application for a banking licence.
Source: Latest Business News from Times Online | 26 Jan 2009 | 7:55 am

Barclays shares rebound on capital pledge

Shares in Barclays staged a dramatic rally today after the beleaguered bank put an £8 billion figure on the scale of its credit write-downs and insisted it needed no additional capital.
Source: Latest Business News from Times Online | 26 Jan 2009 | 7:30 am

The Man at the Summit

The annual meeting of the World Economic Forum, in the Swiss mountain resort of Davos, seems to have been around forever, although it started only in 1971.

But the founder and leader of the forum, Klaus Schwab, who turns 71 in March, won't be around forever and there have been questions about succession.

While a life-long jogger and a physical-fitness addict, Schwab is a cancer survivor. Several years ago, he had successful surgery to treat prostate cancer.

In the past, he has spoken of sharing leadership at the forum and relying on the advice and guidance of the forum foundation's board, which includes Queen Rania of Jordan, former British prime minister Tony Blair, and Rajat Gupta, senior worldwide partner at McKinsey.

"I like to believe that leadership at the forum had always been a collaborative process," he has said.

Several top colleagues at the forum, however, have fallen out with Schwab. Jonathan Schmidt, an American who had organized the Forum's annual meeting in Davos, abruptly left in 2007.  Claude Smadja, once a trusted Schwab ally, resigned in 2002.

Schwab's leadership came under scrutiny in 2000 after the Wall Street Journal raised questions about an apparent overlap between his work for the forum and his personal, for-profit ventures. Several months later, Swiss regulators said they had found no improprieties.

"I don't think that anyone can question my integrity," Schwab once told this reporter. "I take great pride in transparency—both personally and for the forum. I believe in leading the ethical life, and I have always tried to do so."

Born to German parents, Schwab—who calls himself a Swiss-German—often comes across as a rigid disciplinarian. But those who know him well testify to his wit and hearty sense of humor. He is also an accomplished dancer. At a Davos party not long ago, he matched a pair of frenetic Brazilian dancers step for step, beat for beat, and drew sustained applause for his agility and stamina.

That energy is also evident in the nearly nonstop globe-trotting that Schwab undertakes.

Since the forum's founding in 1971, its activities have expanded to more than 80 countries. In addition to the annual Davos meeting, it holds regional "mini-Davos" sessions in a dozen countries; the forum also has scores of initiatives with regional business groups, universities around the world, and with leading nongovernmental organizations. Schwab's presence is ubiquitous at these meetings.

And at these meetings, his mantra always is, "Entrepreneurship in the global interest."

"What we have to do is to strengthen entrepreneurship and, at the same time, social cohesion," Schwab has said.

Schwab met his wife, Hilde, at the forum, where she worked as an assistant. In time, she became one of the forum's driving forces, and a prime mover behind the creation of the Klaus and Hilde Schwab Foundation for Social Entrepreneurship a decade ago.

More than 2,500 participants will participate in this year's meeting at Davos, including dozens of C.E.O.'s and other senior executives of 1,000 corporations, many of them from developing countries. The Forum said that 41 heads of state or government will attend, including British Prime Minister Gordon Brown.

There have been scores of imitators of Davos. Perhaps the most prominent is the Clinton Global Initiative, begun by former President Clinton, who used to be a regular at Davos. The Clinton gathering is held annually in New York, but it draws nowhere near the numbers of top-level political and business leaders who attend Davos.

"Davos" has become a metaphor for setting the global agenda, and its status is unlikely to be challenged any time soon.

"The Annual Meeting 2009 is one of the most crucial in the near 40 year history of the World Economic Forum," Schwab said last week. "The extraordinary participation in terms of political and business leaders and other stakeholders demonstrates that our Annual Meeting will be the place where key actors can address both a crisis of unprecedented scope and, at the same time, the sort of world we collectively want to see emerging once the crisis is over."

Related Links
Obama Snubs Davos
The Man at the Summit
Dissecting the Crisis in Davos



Source: Portfolio.com: Top 5 | 26 Jan 2009 | 5:00 am

Dissecting the Crisis in Davos

Last year, when JP Morgan chief executive Jamie Dimon spoke at the opening press conference at the World Economic Forum in Davos, he opened with this line: "Number one on my list is world peace."

Of course, the hot topics of conversation last year included a rogue trader at Société Générale and the potential impact of investments by sovereign wealth funds. Seems almost quaint now, doesn't it? Dimon isn't a co-chair of the annual meeting of the World Economic Forum this year, so we won't know if world peace is still number one on his list or if something more like "sustainability of the U.S. banking system" might have supplanted it.

A lot has changed in the global economy since last year, and business executives, political leaders, entrepreneurs, and wannabe V.I.P.'s from around the globe will gather in the Swiss mountains this week to hash it out. The theme of this year's conference is "Shaping the Post-Crisis World," which is optimistic considering we haven't quite figured out how to move from mid-crisis to post-crisis.

"What we are experiencing is the birth of a new era, a wake-up call to overhaul our institutions, our systems and, above all, our way of thinking,” said World Economic Forum founder Klaus Schwab in a statement. (Read a profile of Schwab here.)

Although he's not co-chairing, Dimon is on the schedule to participate in the conference again this year, along with other major names in finance including Josef Ackermann of Deutsche Bank, Robert Diamond of Barclays, and Stephen Schwarzman of the Blackstone Group.

But this year, Davos may be more notable for who isn't there rather than who is. Former Merrill Lynch chief John Thain was supposed to participate but given the fact that he got his walking papers from Bank of America chief executive Ken Lewis last week, his attendance would be surprising. Others from last year's conference such as Goldman Sachs' Lloyd Blankfein and Morgan Stanley's John Mack aren't on the list to participate. Will Citigroup host a cocktail party again? Doubtful.  

The conference will open with remarks by Chinese Premier Wen Jiabao and Russian Prime Minister Vladimir Putin. Other political leaders will include Angela Merkel of Germany and British Prime Minister Gordon Brown.

The 200+ panels will tackle regular Davos topics such as global warming (Bono will attend again), poverty, and innovation in science and technology. But the dominant theme will undoubtedly be the economic crisis that's currently plaguing many of the largest countries in the world.

With so many bright minds in one tiny town, will they come up with any solutions? Stay tuned to find out.  

Related Links
Obama Snubs Davos
With Big Loss, BofA Gets Big Bailout
Rich and Powerful, but Relevant?



Source: Portfolio.com: Top 5 | 26 Jan 2009 | 5:00 am

BofA played role in $4 billion Merrill bonuses: report

PHILADELPHIA (Reuters) - Bank of America played a role in Merrill Lynch's controversial decision to pay $4 billion in bonuses in December, the Financial Times reported on Sunday.
Source: Reuters: Business News | 26 Jan 2009 | 4:23 am

Obama to push for stricter fuel standards

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 26 Jan 2009 | 4:07 am

The Fortune 500 CEO Hall of Shame

Source: Business Pundit | 26 Jan 2009 | 1:13 am

IMF in discord over renminbi

IMF members are caught in a deadlock over whether to label China's currency as 'fundamentally misaligned', a move that could stoke tension over economic imbalances
Source: Financial Times - US homepage | 26 Jan 2009 | 12:22 am

Music pirates will not be disconnected from the internet

Internet service providers will not be forced to disconnect users who repeatedly flout the law by illegally sharing music and video files, The Times has learnt.
Source: Latest Business News from Times Online | 26 Jan 2009 | 12:00 am

City lost the plot on bailout, ministers claim

The City has “missed” crucial details of last week's bank rescue package, government ministers have been telling top businessmen and investors over the weekend. The Government insists that, despite last week's negative stock market reaction, the package will succeed in reviving bank lending to homeowners, consumers and non-financial businesses in the months ahead.
Source: Latest Business News from Times Online | 26 Jan 2009 | 12:00 am

SOS - save our savers, unfairly punished

Lord Griffiths was an important economic adviser during the Thatcher years. He was a director of the Bank of England from 1984 to 1986 and head of the Prime Minister's Policy Unit from 1985 to 1990. In 2005 he was chairman of the Griffiths Report on personal debt in Britain, which gave a clear warning of the excessive debt that eventually led to the current global crisis.
Source: Latest Business News from Times Online | 26 Jan 2009 | 12:00 am

Downturn hits national oil groups' shares

The global downturn has hit national oil company share prices much harder than their international oil company counterparts, according to a study
Source: Financial Times - US homepage | 25 Jan 2009 | 11:37 pm

Liquidation risk grows as finance dries up

US companies face a greater risk of liquidation because sources of finance to let them reorganise under the country's bankruptcy code are drying up in the global financial crisis
Source: Financial Times - US homepage | 25 Jan 2009 | 11:35 pm

Car parts sector looks for $10bn US bail-out

The US automotive parts supply sector is to request at least $10bn of federal bail-out funds from America's troubled asset relief programme
Source: Financial Times - US homepage | 25 Jan 2009 | 11:32 pm

BofA had role in Merrill bonuses

Bank of America played a role in Merrill Lynch's decision to pay $4bn in bonuses in December as mounting losses were threatening to derail BofA's takeover of the Wall Street firm
Source: Financial Times - US homepage | 25 Jan 2009 | 11:32 pm

Investors await earnings, Obama's stimulus plan (AP)

AP - As Wall Street waits for Congress to act on President Barack Obama's stimulus plan, investors will look to a swath of earnings reports and comments from the Federal Reserve this week for clues on when the economy might begin to improve.

Source: Yahoo! News: Stock Markets News | 25 Jan 2009 | 9:37 pm

Mood of sobriety and self-recrimination at Davos

Overall numbers may be up this year in Davos, but the mood is quite different and there are many absences from the banking sector
Source: Financial Times - US homepage | 25 Jan 2009 | 7:17 pm

Travellers win big in downturn

One sure bet in the turbulent airline sector, for the first part of this year at least, is that passengers will be the big winners. Aviation experts say the uncertainty airlines face is unprecedented but in New Zealand at least...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Tasman flights get super-size boost

From next Monday Emirates Airline's latest plane will make its super-size presence in Auckland. The airline's Airbus A380 - the biggest passenger plane in the world - begins a three times a week service to Sydney. Because it...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Obama signals tougher approach on bailout

President Barack Obama has signalled he will toughen restrictions on and oversight of banks as part of a fresh plan to aid the battered industry. Obama blasted the banks at the weekend over reports that they've spent money renovating...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Owen Hembry: Free trade best hope of getting through

International trade could be key to dragging the global economy out of recession. Boosting trade could help companies make more profit and so encourage them to invest. Employers could start thinking about hiring staff rather...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Hopes regatta will blow away recession's gloom

Retailers and tourism businesses are hoping to capitalise on an influx of visitors expected in Auckland over the next few weeks for the Louis Vuitton Pacific Series. The sailing regatta was announced in September last year in a...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Reserve Bank fixes on risk factors in new rules for finance companies

The Reserve Bank is taking a tough approach in its new role as prudential regulator for finance companies, proposing stringent new rules requiring firms to bolster their balance sheets and moving to unwind excessive related party...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Chrysler head backs recovery

NEW ORLEANS - A Chrysler executive says the vehicle maker should be viable by springtime because of its restructuring, introduction of new and improved vehicles, and higher sales due to loosened credit and sweetened incentives for...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Business experts volunteer to help workers

BRISBANE - The Queensland Government has appointed a group of 16 leading business sector experts to help guide workers in the state's main job industries through the economic crisis. The 16-strong group, called the Jobs Squad,...
Source: New Zealand Herald - Business | 25 Jan 2009 | 4:00 pm

Gill South: Tough times just the right time for CFOs to show their worth

As some of the biggest names in the banking world wobbled last year, the chances are that some voters chose John Key partly because they thought his finance background would come in handy in the hot seat. Mind you, George W. Bush's...
Source: New Zealand Herald - Business | 25 Jan 2009 | 3:55 pm

Deborah Hill Cone: No end to this war of all mothers

The mommy wars are back and - hate to break it to you, ladies - we can't win. France's Justice Minister, a plucky broad called Rachida Dati, was internationally bolloqued for returning to work five days after having a baby. French...
Source: New Zealand Herald - Business | 25 Jan 2009 | 3:55 pm