|
|
|
|
Paul Winton: How to stack the deck in your favourThe holidays are over, and now is the perfect time to get an advantage over competitors. Smart business owners should be examining whether they're the natural owner of the assets they own. If they are not, they should sell...Source: New Zealand Herald - Business | 30 Jan 2009 | 3:00 pm Currencies: Dollar up versus euro after GDPThe U.S. dollar index advances Friday, after the government says fourth-quarter gross domestic production falls 3.8%, the worst since 1982.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:22 pm Indications: U.S. stock futures rise on better-than-expected GDPU.S. stock futures gained back some ground as gross domestic product data wasn't as bad as analyst expected, helping offset bad news on the earnings front.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:18 pm US economic output falls sharplyUS economic output fell 3.8% in the last three months of 2008, the worst quarterly contraction in more than 26 years.Source: BBC News | Business | World Edition | 30 Jan 2009 | 2:17 pm Metals Stocks: Gold rises to six-month high on safe-haven buyingGold futures rise Friday to the highest level in six months as government data that shows the U.S. economy contracts the most in the fourth quarter in 27 years increases safe-haven buying.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:15 pm Economic Report: U.S. GDP off 3.8% in fourth quarter; inventories limit dropThe U.S. economy contracts at a 3.8% annualized rate in the fourth quarter, Commerce Department data show. The decline in gross domestic product would have been worse except that the government counts an unwanted buildup of goods on store shelves as growth.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:15 pm Makeover your home - for 75% lessIf you've never set foot in an architectural salvage shop, you're missing out on an amazing world of bargains for house repairs and upgrades. A cross between a home improvement center and an antique store, these cavernous warehouses sell used, or "pre-owned," house parts, from french doors and ornate mantelpieces to like-new commercial-grade appliances.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 2:14 pm Economy: Sharpest decline in 26 yearsThe U.S. economy suffered its biggest slowdown in 26 years in the last three months of 2008, according to the government's first reading about the fourth quarter released Friday.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 2:12 pm Stock futures point higher ahead of open (AP)
Source: Yahoo! News: Stock Markets News | 30 Jan 2009 | 2:11 pm Bond Report: Treasurys up after GDP shrinks most since 1982Treasurys advanced, pushing yields down, after a government report said the U.S. economy shrunk 3.8% in the fourth quarter of 2008, the worst since 1982.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:10 pm Morgan Stanley, Goldman Sachs considering more job cuts: reportBOSTON (MarketWatch) -- Morgan Stanley and Goldman Sachs Group Inc. are reportedly considering more job cuts as the once-mighty investment banks adapt to much leaner times on Wall Street.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:09 pm US economy shrinks at fastest rate since 1982The US economy shrank at its fastest rate since 1982 in the final quarter of 2008 as Americans stopped spending on all but essential items, such as food and petrol.Source: Latest Business News from Times Online | 30 Jan 2009 | 2:08 pm Wall Street set to edge up after GDP data (Reuters)
Source: Yahoo! News: Business | 30 Jan 2009 | 2:07 pm Wall Street set to edge up after GDP data (Reuters)
Source: Yahoo! News: Stock Markets News | 30 Jan 2009 | 2:07 pm Piper Jaffray Downgrades Under Armour (UA) to Sell on Valuation; Timing Difficult For ExpansionPiper Jaffray & Co. downgrades Under Armour (NYSE: UA) from Neutral to Sell. Price target lowered by $1 to $16, citing near term headwinds for domestic discretionary spending and deteriorating gross margin. Piper analyst says, "We believe in the long term growth prospects for UA; however, near term headwinds for domestic discretionary spending coupled w/ gross margin deterioration from unfavorable mix and premium price point product does not justify the current multiple on our est. for earnings in FY09." Source: 24/7 Wall St. | 30 Jan 2009 | 2:06 pm Hello, 1927Today's Planet Money is brought to you by the number 3.8. That's the percentage by which the American economy shrank in the last three months of 2008. Gross domestic product, or GDP, fell by less than expected in the fourth quarter, but still managed to shrink faster that at any time since 1927. GDP is the sum of all the goods and services produced in this country -- as Adam Davidson likes to say, every cup of coffee bought and every house sold and every last widget made. MarketWatch says the GDP number would have been worse, except that the government counted "an unwanted buildup of goods on store shelves as growth." NPR's Jim Zarroli reports that the economy as a whole grew by 1. 8 percent last year, but much of that happened in the first six months. Deflation-watchers, check the Employment Cost Index. Ian Shepherdon of High Frequency Economics says it rose .5 percent in the fourth quarter, the smallest increase in nearly a decade. He writes: "Clearly, the steep rise in unemployment and massive pressure on margins is already squeezing costs, and the process has much further to run. The labor market will be a source of disinflation pressure for the foreseeble future." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Jan 2009 | 2:03 pm UPDATE 2-Arch Coal's profit falls as prices slump* Reduces capital spending (Adds company comment, other details)Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 2:02 pm Roche lowers Genentech bid, goes hostileIn a display of hostility toward a firm it mostly owns, Roche Holdings on Friday lowers its takeover bid for Genentech and takes the offer directly to shareholders.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:01 pm Exxon posts annual profit recordExxon Mobil reported the largest annual profit in U.S. history Friday, making $45.22 billion on the back of record oil prices.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 2:00 pm NewsWatch: Q4 GDP falls 3.8% as inventories limit downturnWASHINGTON (MarketWatch) - The U.S. economy contracted at a 3.8% annualized rate in the fourth quarter but the decline would have been worse except that the government counts an unwanted buildup of goods on store shelves as growth.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 2:00 pm Watchdog to probe rent back firmsThe Office of Fair Trading asks 16 firms offering sale and rent back deals to backup claims made in adverts.Source: BBC News | Business | World Edition | 30 Jan 2009 | 2:00 pm Wall St takes some heart from GDP dataUS stocks were set for a mixed start after economic data showed the biggest contraction in US output since 1982 – which was nevertheless not as bad as fearedSource: Financial Times - US homepage | 30 Jan 2009 | 1:59 pm Chevron earnings rise on asset swap gainNEW YORK (Reuters) - Chevron Corp , the second-largest U.S. oil company, said on Friday its fourth quarter profit rose slightly as a gain from an asset swap offset lower oil prices and production.Source: Reuters: Business News | 30 Jan 2009 | 1:58 pm Gold to shine on TSX, data eyed (Reuters)Reuters - Toronto's main stock market index could open higher on Friday as strong gold prices shine a spotlight on the resource-based index, but this could be offset by more worries over the health of the North American economy.Source: Yahoo! News: Stock Markets News | 30 Jan 2009 | 1:57 pm Stock futures still down after GDP reportWall Street appeared headed for a slightly lower opening Friday following a better-than-expected reading on the economy's fourth-quarter performance. But stock futures pared their lossesSource: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:57 pm Economic Report: Employment costs rise at slowest pace since 1980sU.S. employment costs rise at the slowest pace in at least 26 years in 2008, the Labor Department reports, a sign that rising unemployment is keeping a lid on wages and benefits.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 1:57 pm Big Oil Gets Sober On Earnings & Revenues (XOM, CVX)
Exxon Mobil (NYSE: XOM) did beat earnings estimates with a report of $1.55 EPS, while estimates from First Call were $1.45 EPS. This is a beat on the surface, but keep in mind that the net income report of $7.82 billion is down from $11.66 billion a year ago. It also posted $2.13 EPS in the same period a year ago. And if you think that oil prices and oil demand being so much lower is not taking a revenue bite guess again. Revenues were a whopping $84.7 billion, but that is far lower than the $116.6 billion posted in the same period a year ago. The company sees spending $7 billion on share buybacks in Q1 to reduce its number of shares outstanding. That is after spending $8.8 billion to repurchase some 119 million shares over the last quarter. Chevron Corp. (NYSE: CVX) looks a bit different on the surface with net income of $4.9 billion, but this includes almost $1.05 billion in gains from asset exchanges and from foreign currency. It posted earnings of $2.44 EPS, which is compared to $2.32 last year and compared to estimates of $1.81 EPS. It too saw a drop in revenues, which were down to $45.2 billion versus $61.4 billion a year ago. Exxon Mobil shares are up almost 2% at $78.50 in early per-market trading, and its 52-week trading range is $56.51 to $96.12. Chevron shares are up 2.7% at $72.55 in early per-market trading, and its 52-week trading range is $55.50 to $104.63.
Jon C. Ogg Source: 24/7 Wall St. | 30 Jan 2009 | 1:54 pm UPDATE 1-BioMS multiple sclerosis drug fails mid-stage studyJan 30 (Reuters) - Canada's BioMS Medical Corp said its lead drug for the treatment of multiple sclerosis failed to meet the main goal of a mid-stage study.Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:53 pm Wall Street set to fall on GDPU.S. stocks were set to fall at the open on Friday after a report that the fourth quarter gross domestic product fell by an annual rate of 3.8%.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 1:52 pm What Happens To GDP Now? It Moves Down More Sharply
The fourth quarter number was helped somewhat by a build-up in inventories. Real final sales for domestic product, which excludes inventories, decreased 5.1% in the fourth quarter. This is the biggest drop since 1980. One of the concerns that economists will have to have is whether some of the effects of consumer spending and corporate investments have slipped into the current quarter. If so, that will have to be added to GDP contraction which is already almost certainly much worse than in Q4. Based on early statistics about consumer confidence, employment, real estate prices, and capital spending a GDP contraction in the range of 10% should not be a surprise. Thirty companies laid off almost 200,00 people in January. Tens of thousand of smaller firms which the credit crisis is likely to hurt badly probably let workers go at a much more rapid pace. No one would be terribly surprised if total unemployment rose by nearly one million people in the first month of the year. If the joblessness situation is that grim, the price of homes is likely to be falling even more sharply than last year and more mortgages are headed under water. Default and foreclose rates are bound to jump higher. Consumer confidence, which is already remarkably bad, will be exacerbated by the number of people out of work and the lack of credit to buy even the most essential items. Jobs and consumer confidence are Siamese twins.Retail sales in the last two months of 2008 have already confirmed that. Consumer consumption likely raced downward after the holiday. Store closings and retail industry lay-offs are signs that the shoppers who did not show up in the fourth quarter are staying away now. Because the recession has already moved to most parts of Europe and much of Asia, the demand for US exports has dropped sharply. That also undermines business output and job creation. Businesses which count on overseas consumption get the air taken out of their sales. The fourth quarter GDP number may have been a little better than expected. Joblessness and a bleeding off of some of that overstocked inventory spell a historic drop for Q1. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Jan 2009 | 1:50 pm Dutch lessonSpain needs to learn from others to cut unemploymentSource: BBC News | Business | World Edition | 30 Jan 2009 | 1:50 pm Recession keeps lid on employment costs in 2008Employment costs edged up in the final three months of the year at the smallest pace in nearly a decade while the gain for the entire year was the weakest showing in more than a quarter...Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:49 pm US economy shrinks 3.8pc in fourth quarterThe United States economy the world's largest shrank 3.8pc in the final three months of 2008 the biggest fall in 26 years.Source: Telegraph Finance | 30 Jan 2009 | 1:48 pm Chevron posts 4Q earnings of $4.9 billionChevron Corp. says it earned $4.9 billion in the fourth quarter though revenues plunged 28 percent with oil prices in sharp decline. Chevron, the second-largest U.S. oil company,...Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:48 pm UPDATE 1-Chevron earnings rise on asset swap gainNEW YORK, Jan 30 (Reuters) - Chevron Corp , the second-largest U.S. oil company, said on Friday its fourth quarter profit rose slightly, as a gain from an asset swap offset lower oil prices and production...Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:48 pm GDP sees biggest drop in 27 yearsWASHINGTON (Reuters) - The economy shrank at its fastest pace in nearly 27 years in the fourth quarter, government data showed, sinking deeper into recession as consumers and business cut spending.Source: Reuters: Business News | 30 Jan 2009 | 1:47 pm Economy shrinks at 3.8 percent pace in 4QThe economy took a sharp downturn in the last three months of last year, but the nosedive was not as steep as many economists, investors and government officials had feared.Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 1:47 pm Honda's four-month break to beginFriday is the last day at work for staff at Honda in Swindon for four months as an extended shutdown takes effect.Source: BBC News | Business | World Edition | 30 Jan 2009 | 1:45 pm Invesco fourth-quarter profit down 82%NEW YORK (MarketWatch) -- Invesco Ltd. on Friday became the latest asset manager to report a steep fall in its fourth-quarter profit. The firm said net income was down 82%, to $31.9 million, or 8 cents a share, from $175.9 million, or 43 cents a share in the year-ago period.Source: MarketWatch.com - Top Stories | 30 Jan 2009 | 1:45 pm Layoffs Watch '09: Goldman SachsleyAs previously mentioned, both Goldman Sachs and Morgan Stanley will be conducting an additional round of population restructuring at their respective firms in the near (ca. April) and very near future (ca. February). The Journal pegs the reduction in workforce in the House of Mack at about 5 percent, and also describes the the expected bloodletting as merely under "consideration." 
Source: Dealbreaker | 30 Jan 2009 | 1:43 pm 'Trying to do more with less' - senior advocateEvery weekday, Eva Gomez walks down the block to the Fox Point Senior Center to eat her one hot daily meal, exercise and chat with friends. Otherwise, she's cooped up in her Providence, R.I., apartment with little more than crackers and a cup of coffee or tea.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 1:42 pm StatoilHydro says Venezuela payments not delayedOSLO, Jan 30 (Reuters) - Norwegian oil and gas producer StatoilHydro , a partner in a big Venezuela heavy oil project, said it has not seen any delays in financial dealings with companies in the South...Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:42 pm Futures turn higher after GDP dataNEW YORK (Reuters) - Stock index futures turned higher on Friday after data showed the economy shrank at its fastest pace in nearly 27 years in the fourth quarter, but contracted less than expected.Source: Reuters: Business News | 30 Jan 2009 | 1:42 pm Stock futures pare losses after GDP reportStock futures are paring their losses following a better-than-expected reading on the economy's fourth-quarter performance. The Commerce Department said Friday the gross domestic productSource: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:40 pm US economy shrank at 3.8% pace in Q4The US economy contracted at a 3.8 percent pace in the fourth quarter of 2008, the worst performance since 1982, government data showed Friday. The decline marked a sharp downward...Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:39 pm UPDATE 1-Croatia to buy INA gas business, signs deal with MOLZAGREB, Jan 30 (Reuters) - Hungary's MOL has concluded a new shareholder agreement with Croatia's government that will give MOL management control over Croatian oil and gas firm INA , MOL said in a statement...Source: RSS feed - channel BNewsBusiness | 30 Jan 2009 | 1:38 pm IMF confident in ability to aid crisis victimsThe International Monetary Fund expressed confidence that its members will ensure the Fund remains adequately funded and able to support any country that might be hit by the global financial crisisSource: Financial Times - US homepage | 30 Jan 2009 | 1:37 pm The Seen and the Unseen at DavosWhen you come to Davos, one experiences the seen and the unseen. You take notice of visible figures, notable commentary, physical marketing, and the surrounding environment. Then there is the unseen - the tone and undercurrent of the event. This is my fifth year attending Davos, and there are clear differences this year versus those previous.Unlike other years where a number of key issues have been discussed and a variety of figures have been represented, this year there is a clear focus on the global financial crisis, the one issue that has left no individual or economy unscathed. What is not visible is the celebrity factor - this year the Premier of China is more noticed where in past years it has been Brad and Angelina. This is a good development given the seriousness and the urgency of the issues facing the global economy. While the celebrity element is missing, and along with that any sense of frivolity, there are certain visible figures and campaigns that have dominated attention here at Davos. Premier of China Wen Jiabao’s session was packed and his message was heard by all – he highlighted the major financial force China has become and the rapid pace at which it has prospered despite these challenging times. Another government here at Davos that has been extremely visible is Mexico. Aside from the many Mexico signs and banners throughout the resort town on buses and snow capped hilltops, the Mexican delegation at Davos is focused on highlighting their political agenda and the impact global economic conditions will have on their economy. Mexico is continuing a broad-reaching visibility campaign of global magnitude focused on raising awareness of its economic, cultural, and political agendas. Despite the change in mood at Davos this year, a positive sign has been a shared sense of global economic and social responsibility, which is unseen but still palpable. I am grateful to have encountered so many government officials, heads of state and CEOs to share our insights and hear theirs. The cooperation of the public and private sector is even more important. Related Links China Cautions the U.S. at Davos Obama Snubs Davos Putin Shows Dell the Love in Davos Source: Portfolio.com: Top 5 | 30 Jan 2009 | 1:30 pm Honda, Toyota and Porsche eye auto industry carnageTOKYO/STUTTGART (Reuters) - Sliding car sales dealt fresh blows on Friday to the earnings of top auto makers caught in the worst industry downturn in decades.Source: Reuters: Business News | 30 Jan 2009 | 1:29 pm Exxon Q4 profit down 33 percent, tops Wall StreetHOUSTON (Reuters) - Exxon Mobil Corp, the world's largest publicly traded company, said on Friday its fourth-quarter net income fell 33 percent as a steep drop in crude oil prices hurt results.Source: Reuters: Business News | 30 Jan 2009 | 1:27 pm Honda, Toyota and Porsche eye auto industry carnage (Reuters)
Source: Yahoo! News: Business | 30 Jan 2009 | 1:26 pm Procter & Gamble profit misses, cuts outlookCHICAGO (Reuters) - Procter & Gamble Co posted a profit that missed Wall Street estimates on Friday and cut its full year earnings forecast due to weaker demand, pushing shares down more than 3 percent.Source: Reuters: Business News | 30 Jan 2009 | 1:21 pm Procter & Gamble profit misses, cuts outlook (Reuters)
Source: Yahoo! News: Business | 30 Jan 2009 | 1:21 pm Exxon Q4 profit down 33 percent, tops Wall Street (Reuters)Reuters - Exxon Mobil Corp , the world's largest publicly traded company, said on Friday its fourth-quarter net income fell 33 percent as a steep drop in crude oil prices hurt results.Source: Yahoo! News: Business | 30 Jan 2009 | 1:20 pm Problems grow for costly bank bailoutThe Obama administration is intent on fixing the banks. But doing so won't be simple or cheap.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 1:19 pm Opening Bell: 01.30.09Ex-Merrill Executives Got Burned by Madoff (WSJ) Former Merrill chief executives Daniel Tully and David Komansky, along with former Merrill investment-banking chief Barry Friedberg, personally invested in hedge funds with Madoff exposure run by former Merrill brokerage chief John "Launny" Steffens, according to people familiar with the matter. The Merrill executives are the highest-level Wall Street victims of the scandal to surface until now. Big Bucks For SEC Boss (NYP) Schapiro had a $2.75 million salary as head of Finra, the US brokerage watchdog, according to disclosure documents. She also got $675,033 in deferred compensation and $184,600 in connection with sitting on the board of Kraft Foods. She resigned that seat Jan. 15 and reported holding Kraft stock worth up to $1 million." Cuomo May Seek Return of $4 Billion in Early Merrill Bonuses (Bloomberg) Survivors' Gilt (NYP)
Source: Dealbreaker | 30 Jan 2009 | 1:10 pm Obama thinks bank losses will cost $2 trillion$President Obama is preparing to spend a further $2 trillion bailing out Wall Street as part of an ambitious plan to force America's financial institutions to resume lending.$Source: Latest Business News from Times Online | 30 Jan 2009 | 1:09 pm Top Pre-Market Analyst Downgrades (ALL, AZN, ETFC, FITB, JNPR, QCOM, RF, RYAAY, SEPR, HOT, TKR, TWC, TROW, UA, VE, ZNT)These are some of the many pre-market downgrades and negative calls we have seen from Wall Street analysts this Friday morning: Source: 24/7 Wall St. | 30 Jan 2009 | 1:01 pm Top Pre-Market Analyst Upgrades (ARAY, AZN, SAM, BSX, CNX, MLM, TER, TWX)These are some of the top pre-market analyst upgrades and positive calls we have seen on Wall Street this Friday morning:
Jon C. Ogg Source: 24/7 Wall St. | 30 Jan 2009 | 12:55 pm Japan's NEC says to cut groupwide workforce by 20,000TOKYO (Reuters) - Japan's NEC Corp said on Friday it would cut its groupwide workforce by 20,000 people, and look for ways to exit its industrial liquid-crystal display-related business.Source: Reuters: Business News | 30 Jan 2009 | 12:52 pm Japanese chip makers in talksRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 12:42 pm Wealth workout: The week's best savings dealsOur regular roundup features toppaying instantaccess accounts fixedrate bonds and Isas.Source: Telegraph Finance | 30 Jan 2009 | 12:32 pm Gordon Brown warns of void left by collapse of global financial systemThe collapse of large swathes of the global financial system has left a void into which bodies such as the IMF will have to step the Prime Minister said.Source: Telegraph Finance | 30 Jan 2009 | 12:28 pm Not even liquor is recession proofRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 12:23 pm Financial rules 'worsened crisis'The HSBC chairman says the current financial rules must be "fundamentally revised" as they had deepened the financial crisis.Source: BBC News | Business | World Edition | 30 Jan 2009 | 12:21 pm Shareholders not President Obama should set the rules on bankers' payUS politicians are turning up the heat on Wall Street over bonuses.Source: Telegraph Finance | 30 Jan 2009 | 12:20 pm S&P futures fall on earnings, GDP eyed (Reuters)Reuters - S&P stock futures extended declines on Friday after quarterly results showed sales at Honeywell and Procter and Gamble fell short of estimates.Source: Yahoo! News: Stock Markets News | 30 Jan 2009 | 12:18 pm Cuomo eyes return of $4 billion in early Merrill bonuses: report(Reuters) - New York Attorney General Andrew Cuomo may demand the return of $4 billion in bonuses paid by Merrill Lynch & Co just before it was acquired by Bank of America Corp, Bloomberg said, citing a person familiar with the matter.Source: Reuters: Business News | 30 Jan 2009 | 12:15 pm Electronics giant NEC plans to cut 20,000 jobsTOKYO -- Japanese electronics giant NEC Corp. said it will cut 20,000 workers worldwide as it tries to stanch widening losses from semiconductors and other businesses that have been hard hit by competition...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 12:14 pm Eurozone jobless at 2-year highUnemployment across the nations that share the euro rises to its highest level in more than two years, as more firms lay off staff.Source: BBC News | Business | World Edition | 30 Jan 2009 | 12:05 pm World markets mixed on weak economy, earnings (AP)
Source: Yahoo! News: Stock Markets News | 30 Jan 2009 | 11:56 am Roche goes hostile, cuts Genentech bid to $42 billionZURICH (Reuters) - Roche cut its offer for Genentech Inc, launching a hostile bid which dashed investor hopes of a sweetened offer for the 44 percent of the U.S. biotech group its does not already own.Source: Reuters: Business News | 30 Jan 2009 | 11:50 am Roche goes hostile, cuts Genentech bid to $42 billion (Reuters)
Source: Yahoo! News: Business | 30 Jan 2009 | 11:50 am Yukos shareholders take case to StrasbourgShareholders in Yukos, the collapsed Russian oil group, have won permission to bring a case for up to €32.5 billion (£29.3 billion) compensation at the European Court of Human Rights, the largest claim to be brought before the court in its 59-year history.Source: Latest Business News from Times Online | 30 Jan 2009 | 11:46 am Roche launches hostile bid for GenentechThe Swiss pharmaceutical group launched a hostile $42bn bid for Genentech after failing to agree a deal with the Californian biotech group's board to buy the 44 per cent of the shares it does not already ownSource: Financial Times - US homepage | 30 Jan 2009 | 11:38 am Roche launches hostile bid for GenentechRoche on Friday went hostile in a $43bn bid to take full control of Genentech after friendly takeover talks collapsed with the Californian biotechnology company's directors. The Swiss pharmaceuticals group,...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 11:38 am Clearing California emissionsThere was controversy earlier this week when President Obama decided to review California's request to tighten emissions standards - a move that may force a crippled auto industry to build cars that get better gas mileage.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 11:38 am Erdogan returns to mixed reactionMany Turkish commentators praised their prime minister for storming out of a Davos debate with Israeli president Shimon Peres, but others worried about his inability to control his temperSource: Financial Times - US homepage | 30 Jan 2009 | 11:36 am When No One Is Shipping Goods, No One Is Buying Them
Fedex (FDX) and UPS (UPS) have said that their businesses are faltering, but the situation may be getting much worse than that. According to the FT, "The International Air Transport Association said traffic volumes fell 22.6 per cent year-on-year in December. Air freight accounts for 35 percent of the value of goods traded internationally." While global trade is certainly not off 35%, the numbers could point to a 10% drop, which would be unprecedented. The news is particularly bad for China, and, to a lesser extent, the US. China's export growth is already slowing. If those numbers begin to contract, the GDP movement of the world's most populous nation is likely to move toward negative numbers. A recession in China will hurt the rest of the global economy in part because China is an importer of goods for its large middle class. Sales to the to that group are a part of the revenue of a number of American companies. The US is still a tremendous exporter and the global recession will hurt that. If the air freight numbers are an fair indication, those exports are slowing to a crawl. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Jan 2009 | 11:28 am Fortis renegotiates insurance saleBNP Paribas agreed on Friday to significant changes to its proposed purchase of Fortis assets in Belgium in an effort to shore up support among shareholders of the Belgian-Dutch financial group ahead of...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 11:27 am It's cheaper to drill - but no rush for oil rigsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 30 Jan 2009 | 11:21 am Miners limit FTSE gainsMining stocks continued to put pressure on London equities on Friday, but the real estate sector looked oversold after its recent torrid run and helped the FTSE 100 to overall gains. The prospect of...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 11:16 am Trading Cash For Old Cars, Then Dumping Them In Holes
Among these are subsidizing low cost car loans. Another is to pay car companies a piece of the purchase price of each new car so The Big Three can drop prices and still profit. The latest plan is to pay people for very old cars if they will buy a new one. According to CNNMoney, "Under a bill introduced by Sen. Dianne Feinstein, D.-Calif., owners of older cars would get vouchers worth thousands of dollars toward the purchase of newer, more fuel-efficient vehicles." The program would help Detroit and get old vehicles, which tend to throw off more pollution than new ones, off the road. The plan is green and it stimulates the economy. What no one has suggested is where all the old cars will go. The government will probably have to create several large landfills for dumping the auto and trucks. Over time they can be turned into Superfund sites so the government can spend hundreds of millions of dollars cleaning them up. Looked at that way, buying old cars may be much more expensive than it seems and may cost the taxpayers mote than anyone imagined. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Jan 2009 | 11:15 am WEF 2009: Gordon Brown's mobile phone interrupts his own press conference at DavosGordon Brown was interrupted while he was speaking at the World Economic Forum by the embarrassing sound of his own ringtone.Source: Telegraph Finance | 30 Jan 2009 | 11:11 am Drugmakers boost bourses despite data gloomEuropean equities clawed back ground on Friday as merger activity in the pharmaceutical sector provided support while investors digested data showing a further rise of unemployment in the eurozone.Swiss...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 11:10 am Elderly battle for insurance coverInsurers often charge senior citizens more to drive their cars or travel abroad. We explain how to get cover - and save money.Source: Telegraph Finance | 30 Jan 2009 | 11:07 am The Bank Repair Plan: Neither Fish Nor Fowl
The program is something right out of the Mad Hatters Tea Party. According to The Wall Street Journal, "Under the concept being discussed, the government `bad bank,' possibly run by the FDIC, would buy only assets banks have already marked down heavily. In addition, the remaining troubled assets -- likely a sizable amount -- would be covered by a type of insurance against future losses." There is a fine line between owning assets and guaranteeing them. At some point, it may be no line at all. It also raises the issue of what a toxic asset is. Mortgages that may or may not default? Pools of credit card loans? Commercial real estate loan or LBO lending? Each of these could run into the troubles that mortgage-backed securities have. The past estimates of default risk were much lower. The new ideas are meant to save the taxpayer from the folly of the banks which is likely to be compounded by the folly of the government.The credit crisis is almost certainly going to get much worse before it gets better. Default rates on almost all loans are likely to skyrocket as unemployment rises and housing values fall. Many analysts believe that companies financed by junk debt will begin to default on that debt at remarkable rates and that holders of commercial real estate will have to abandon properties without tenants. There is very little distinction between owning a mule and renting one. If the mule dies, the liability for the cost of the animal is no different. The Administration and Congress may believe that they are doing taxpayers a favor. But, as the guaranteed loans begin to fail the cost of the bailout will grow and there will still only be one source for money. That's the taxpayer. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Jan 2009 | 11:02 am Brown warns countries against protectionismGordon Brown warned today that countries must not resort to protectionism to drag their respective economies out of the global downturn.Source: Latest Business News from Times Online | 30 Jan 2009 | 11:02 am NEC Cuts 20,000 JobsAs the global recession hits the electronics industry, NEC has decided to fire 20,000 people worldwide. According to The Wall Street Journal, "Japanese electronics giant NEC Corp. says it plans to slash at least 20,000 jobs world-wide in an effort to cut 80 billion yen ($890 million) in costs over the next two years." Douglas A. McIntyre Source: 24/7 Wall St. | 30 Jan 2009 | 10:41 am Mortgage approvals rise slightlyThe number of new mortgages approved for home buyers picked up slightly in December, but remains at historic lows.Source: BBC News | Business | World Edition | 30 Jan 2009 | 10:40 am Brown urges global 'confidence'World leaders must have the "confidence to act" to deal with the global recession, Gordon Brown says in Davos.Source: BBC News | Business | World Edition | 30 Jan 2009 | 10:38 am Dell (DELL): A Phone Is Not A PC (HPQ)(SNE)(AAPL)(T)(VZ)(VOD)(NOK)(RIMM)
Industry analysts would say that Dell has done a poor jobs of bringing out innovative and attractive products. Apple (AAPL) Mac sales keep rising. HP (HPQ), Sony (SNE), and Lenovo have launched new product lines which have had warm receptions. Dell's core business is being pinched by three things. The first is that the company was fairly late at expanding into retail outlets overseas. It depended on its direct sales model for too long. The second problem is that the recession has cut Dell's sales. Dell's final problem is that it cannot find the right people to run the company. It recently dumped most of the senior management that it hired just over a year ago. It takes time for new people to get up to speed. Dell does not have time. Word has gotten out that Dell plans to launch its own high-end smartphone. According to The Wall Street Journal, "Dell is focusing on so-called smartphones, higher-end devices that include features like Web browsing and email." Dell does not do well what it is supposed to do well. It has become a second rate PC company. It proposes to partially offset that by entering a business which is controlled by Apple (AAPL) and RIM (RIMM), the maker of the Blackberry. Because smartphone margins are high, Nokia (NOK), the world largest cellphone company, Samsung, and Sony Ericsson are also rushing into the market. The traffic jam is going to be extraordinary. Dell also lacks one of the most important ingredients for being in the handset business. It does not have established relationships with carriers like AT&T (T) and Verizon Wireless (VZ)(VOD). These companies already have product lines in place. It is hard to see what the incentive is for them to add a new brand to those lists, unless Dell wants to pay a bounty to edge itself in. Dell can't win in the handset business. Period. It ought to try to plug the leaks of the ship it is already on. Douglas A. McIntyre Source: 24/7 Wall St. | 30 Jan 2009 | 10:35 am Mexico's Cemex posts $707m lossMexican cement maker Cemex posts its first quarterly loss in a decade amid lower demand and a strong dollar.Source: BBC News | Business | World Edition | 30 Jan 2009 | 10:21 am WEF 2009: headlines on Jan 30A roundup of headlines from the final day of the World Economic Forum.Source: Telegraph Finance | 30 Jan 2009 | 10:02 am Joe Lewis leads M?B investor revoltMitchells ? Butlers has suffered an embarrassing investor revolt led by its biggest shareholder Joe Lewis at the pub group's annual general meeting.Source: Telegraph Finance | 30 Jan 2009 | 9:59 am Nippon Airways predicts 2009 lossJapan's All Nippon Airways (ANA) expects to report a loss for the current financial year amid falling demand for international travel.Source: BBC News | Business | World Edition | 30 Jan 2009 | 9:46 am John Lewis reports post-Christmas sales fallSales at the John Lewis Partnership fell by 0.8 per cent last week as the post-Christmas high street malaise returned to the department store chain.Source: Latest Business News from Times Online | 30 Jan 2009 | 9:38 am Henderson buys New Star for £115mHenderson Group became Britain's fifth-largest retail fund manager today as it sealed a £115 million acquisition deal to buy New Star, John Duffield's struggling asset manager.Source: Latest Business News from Times Online | 30 Jan 2009 | 9:28 am Wildcat strikes over foreign workers spread across BritainComment: Ian King | Honda suspends UK production | The French revolt: who won?Source: Latest Business News from Times Online | 30 Jan 2009 | 9:28 am Mizuho plunges to a lossTOKYO, Jan 30 - Mizuho Financial Group posted a $1.6bn quarterly loss on Friday, hit by a downward spiralling stock market and a weakening economy, and further slashed its full-year forecast. Mizuho, Japan's...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 9:25 am Fancy a Bernard Madoff doll for 149.99?A US toymaker has produced a pocketsized doll of alleged fraudster Bernard Madoff as part of a "Heroes" and "Villains" collection.Source: Telegraph Finance | 30 Jan 2009 | 9:17 am Honda cuts forecasts for fourth timeHonda Motor on Friday issued its fourth profit warning in six months and said it expected slumping sales and a painful rise in the yen to push it into a Y333bn operating loss in the current quarter.Japan's...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 9:14 am Honda cuts forecasts for fourth timeHonda posted a 63% drop in quarterly operating profit and lowered its annual profit forecasts for a fourth time this year as a stubborn slide in global car sales forced it to make further production cutsSource: Financial Times - US homepage | 30 Jan 2009 | 9:14 am Morgan Stanley, Goldman mull more job cuts: report(Reuters) - Morgan Stanley and Goldman Sachs are considering further cuts in staff, the Wall Street Journal reported on Friday, citing people familiar with the matter.Source: Reuters: Business News | 30 Jan 2009 | 9:14 am London shares open down (AFP)
Source: Yahoo! News: Stock Markets News | 30 Jan 2009 | 8:59 am Recession: a sense of proportion is needed"This is the worst recession since the Second World War." So say too many pundits.Source: Telegraph Finance | 30 Jan 2009 | 8:58 am Wen hits back in renminbi policy disputeWen Jiabao has mounted a vigorous defence of the country's exchange rate policy, in Beijing's highest level response to criticism from Barack Obama's US administrationSource: Financial Times - US homepage | 30 Jan 2009 | 8:39 am Japanese shares undermined by grim earningsJapanese shares dropped on Friday as even bleaker-than-expected data shook sentiment and the onslaught on grim earnings weighed on the market.The Nikkei 225 shed 3.1 per cent to 7,994.05, while the broader...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 8:33 am Ford's quarterly loss worse than expected at $5.9 billionThe loss caps the automaker's worst year. CEO Alan Mulally says the company will not need government help like GM and Chrysler, at least for now. ...Source: RSS feed - channel BNPaperBusiness | 30 Jan 2009 | 8:00 am Japan's production falls record 9.6%Japanese industrial production fell a record 9.6 percent in December, while core annual inflation almost evaporated, reinforcing expectations of a record economic contraction as the global financial crisis worsensSource: Financial Times - US homepage | 30 Jan 2009 | 7:53 am Honda suspends UK production as profits plungeBritish workers at Honda will start an enforced four-month layoff today against the backdrop of a further dire warning over the trading outlook from the Japanese car giant.Source: Latest Business News from Times Online | 30 Jan 2009 | 7:50 am Australian stocks: Market battles upwardThe Australian share market managed to claw its way into positive territory at the close of trade, buoyed by the gold miners and oil companies, despite lower base metal prices and falls on overseas markets. The benchmark S&P/ASX200...Source: New Zealand Herald - Business | 30 Jan 2009 | 7:00 am Pyongyang scraps all accords with SeoulNorth Korea says it is terminating all agreements with its neighbour, the latest in a series of verbal attacks that analysts say are more aimed at grabbing the attention of Barack ObamaSource: Financial Times - US homepage | 30 Jan 2009 | 6:44 am NZ stocks: Market moves upThe New Zealand share market finished higher today, which was seen as a good effort in the context of down days on other markets. Telecom was unchanged at 266 and the volume trading in the stock continues to raise eye brows with...Source: New Zealand Herald - Business | 30 Jan 2009 | 6:00 am Fannie strikes deal to modify mortgages: report (Reuters)
Source: Yahoo! News: Business | 30 Jan 2009 | 5:30 am Currency: Dollar at six-year lowThe New Zealand dollar hit the US50c mark today - the lowest it has been for six years. The kiwi struggled as the US dollar climbed and as Reserve Bank governor Alan Bollard signalled further interest rate cuts. The NZ dollar...Source: New Zealand Herald - Business | 30 Jan 2009 | 5:30 am 4 Ways to Help Shrink Your Debt (Deal of the Day)Americans are notorious for their ability to spend more than they earn. But now -- as the credit crunch continues to cripple the economy -- that notoriety has reached epic proportions. According to the Federal Reserve, total consumer revolving credit, including credit-card debt, stood at nearly $974 billion last November, up from some $770 billion in 2003. Meanwhile, a January 2009 report by the American Bankers Association found that bank-issued credit-card delinquencies hit their highest level in five years during the second quarter of 2008. And consumer bankruptcy filings increased by nearly 33% in 2008, according to the American Bankruptcy Institute and the National Bankruptcy Research Center. "We're in a different time than we've been in any of our living memories," says Gerri Detweiler, credit advisor for Credit.com. "The level of debt that consumers owe is much higher than it's been in the past, and there's this big gap in [debt] solutions." Fortunately, the first steps toward a debt-free life are some of the easiest. Cut down on discretionary expenses such as dining out or shopping. Then create a budget and stick to it. Another helpful move: asking lenders if they can offer better terms on rates or minimum payments. Here are four more ways to help you reduce commonly-held debt. MortgageIf your mortgage payment is getting hard to afford, contact your lender to see if you can negotiate a better rate or lower monthly payments. If you're in real dire straits, see if your lender is participating in Hope for Homeowners, a government-run program that encourages lenders to refinance mortgages of borrowers who are at risk of losing their homes. More than 200 lenders have signed up since the program began on Oct. 1, according to the Department of Housing and Urban Development (HUD). Also see our tips on renegotiating your mortgage. Credit-Card DebtInterest rates on credit cards can run as high as 33% for cardholders who are late with a payment or have a low credit score, says Curtis Arnold, founder of CardRatings.com. To tackle this debt, pay more than the monthly minimum requirement and focus on paying off high-interest-rate cards first, says Sheryl Garrett, a fee-only certified financial planner. Another way to rein in costs: Take advantage of 0% balance transfer offers or low introductory APRs. Just be sure to read the fine print. Currently, the average fee for a balance transfer is 3% or 4% of the transfer amount which can equal up to $120, says Arnold. (Some lenders don’t even have caps.) Also, make sure you can pay off the balance before the introductory period expires and the high rates kick back in. Private Student LoansAccording to the College Board, the average undergraduate student left school with more than $12,000 in debt during the 2006-07 academic year. Just like credit-card debt, it's best to tackle higher-interest loans, namely federal student loans issued before July 2006 and most private student loans, first. Both carry variable interest rates that can rise and fall each month. Last year, rates on private loans, for example, averaged 14%, says Mark Kantrowitz, founder of FinAid.org. One solution is to consolidate all your private loans. However, since consolidation loans currently carry variable interest rates it would only make sense to do so if you have a good credit score. Otherwise, you could get hit with an even higher rate. One problem with these consolidation loans: They're hard to find. Currently, only four lenders -- including Wells Fargo and Student Loan Network -- offer them. Medical DebtIf you're drowning in medical debt, make sure your insurer is paying its share of expenses. Often times, the doctor will use a certain code for the services rendered that the insurance company can't identify, says Garrett. Instead of rectifying the issue, the insurer just doesn't pay."These mistakes happen way [too] often," she says. Next, speak with your medical provider. To ensure they get paid, medical providers are often open to working out payment plans. Before speaking with your provider, figure out how much you can afford to pay each month, then pitch that amount to the doctor's billing department, says Garrett. In addition, many hospitals have government funds to help patients who can't afford their medical care, and independent nonprofits also provide financial assistance. See our story for more tips on digging out of medical debt. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 30 Jan 2009 | 5:00 am The Beautiful Side of Car PartsTHE MELTDOWN OF THE AUTO INDUSTRY LAST YEAR was vicious and widespread -- and the outlook for 2009 is hardly much better. The consensus among industry insiders is for a 13% drop in sales, following an 18% plunge in 2008. Amid the gloom, however, there's a notable bright spot: the market for auto parts used for maintenance and repair. Rather than buy new cars, cash-strapped Americans are making do with their existing ones. The average age of a car on the road, which climbed from 9.3 years in 2001 to 10.1 in 2007, is only going higher. And all those jalopies need plenty of fan belts, exhaust pipes and brake pads to keep running. The upshot: The $215 billion "aftermarket" for auto parts hasn't shown the slightest decline, and is likely to hold up well for months to come. And that spells opportunity for the chains that specialize in such parts. Under normal circumstances, outfits like Advance Auto Parts (AAP), AutoZone (AZO), O'Reilly Automotive (ORLY) and Pep Boys (PBY) would have been battered, like most U.S. retailers, which expect a grim 2009. But the car-parts stores have one big factor working in their favor: Their wares are far less discretionary than, say, cashmere sweaters and iPods. Although motorists may delay maintenance in hard times, they eventually can't put it off if they want their vehicles to perform well. O'Reilly CEO Greg Henslee says that American motorists could be as much $60 billion behind in their maintenance -- meaning that some of the chains should see their business pop later this year. Of all the companies in the field, O'Reilly is probably the most appealing. (One of its fans, top investor Mario Gabelli, cites the stock in Barron's Roundtable; see here). While smaller than some rivals, O'Reilly has two big advantages. First, about half the revenue at its core stores comes from commercial sales to repair shops and the like -- more than most of its peers'. Commercial business is less cyclical than consumer spending. O'Reilly also stands to benefit from the $1 billion acquisition last summer of CSK Auto, another parts retailer. At the time, the deal wasn't particularly applauded, with investors worried by weak sales and margins at CSK. O'Reilly's stock traded down from more than $30 before the deal to as low as $21 last autumn. It has since rebounded to around $28. But with CSK, in one swoop O'Reilly added 1,342 stores in 22 states, a nearly 85% increase (to more than 3,000) from O'Reilly's previous 1,774-store network. Many of the new locations are in the western U.S., where O'Reilly hadn't been well-represented. Last summer, analysts concluded that full integration of CSK would take two years or more. Six months later, while it's still likely that the full payoff won't show up before 2011, it looks as though integration is going faster and better than expected. "Hopefully, we will do well this year, certainly well in relation to the poor economy," says Henslee. THE FIRST STEP WAS TO FOCUS ON ELIMINATING duplicate overhead by merging or closing some outlets. The company must boost profitability at CSK, where the 2007 operating margin was 2%, versus O'Reilly's 12.1%. In part, the plan is to boost CSK's commercial sales, which had accounted for just 17% of its total. Further gains should come from adding regional distribution centers to the CSK chain, allowing the stores to be better-stocked. Pre-deal, CSK had one distribution center for every 335 stores, versus O'Reilly's one per 130. "O'Reilly's business model, variable labor costs and supply-chain logistics are among the most efficient in the industry," says Cid Wilson, director of research at New York-based investment firm of Kevin Dann & Partners. "It will take O'Reilly 12 to 18 months to bring CSK totally up to its standards, but we will start seeing slow, steady improvements over this year, improvements that will restore investor confidence. I see the stock rising 50%, to $42, within 12 months." O'Reilly is set to report full-year earnings around $1.56 a share, versus $1.68 in 2007 -- although an earlier-than-expected CSK turnaround could trim the decline. For the new year, Wilson sees profit up 20%, to at least $1.90. If he's right, O'Reilly's stock, like a well-maintained muscle car, could have plenty of miles ahead.
The Bottom Line
SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 30 Jan 2009 | 5:00 am Inside DavosBetween sessions and after seminars, Condé Nast Portfolio editors in Davos, Switzerland, have asked participants their impressions of the World Economic Forum annual meeting. Here is a sampling of what they have to say.Peter Thiel, president of Clarium Capital ManagementOne of the most stunning changes from the last year involves the strange disappearance of global warming. One must wonder at how a scientific fact changed into an outmoded fashion.Even though most people are pessimistic, their pessimism doesn't encompass the deep anger directed against the political establishment of the West. As in the past the angry people are simply not represented. Kenneth Rogoff, Harvard economics professorOn one hand there's very deep crisis; on the other there's a sense of purpose. Last year everyone was shell-shocked, but this year people are trying to do something about it.Paul Roberts, author of The End of OilWhat can [Russian Prime Minister Vladimir] Putin do? He can't do anything for the price of oil. He's in a pretty tight spot.Oil's not going to get more expensive anytime soon. There's a whole bunch of oil on the market but there's also extra production capacity. These economies based on high oil prices are going to have to get creative. They tend to get feisty. You're going to see a lot of finger pointing. Reid Hoffman, CEO of LinkedInA lot of people are focusing on government intervention as a turnaround for the economic crisis we're in. I'm more focused on empowering individuals.Fundamentally what leads to recession is people stop spending, which takes business into a spiral down. How do you get that system to reverse? From a government perspective they'll say things like stimulus package. I'm more interested in finding out how individuals [will act]. I end up talking to a lot of Silicon Valley people, and Silicon Valley people are always optimistic. But talk to other people and they might be backordering their Prozac.Related Links Malaise Per Gallon Malaise Per Gallon Goldman: Still Bullish on Oil Source: Portfolio.com: Top 5 | 30 Jan 2009 | 5:00 am Moscow Retailers Feel the CrunchThe news from Russia hasn’t gotten any better. For a slideshow of images from Moscow, click here (subscription required). Couture Stays Viable in Down Economy Russian Dressing Morning Hemlines: Nexcen, Milan, Paris, Margiela, Theysken, McQueen, Project Runway, Burberry Source: Portfolio.com: Top 5 | 30 Jan 2009 | 5:00 am A Guaranteed 7%: Can Putnam Pull It Off? (Ticked Off)Who wouldn’t want a guaranteed return in this market? To know that you’re going to make money no matter what the market does is an understandably appealing notion. Problem is, the marketers at Putnam Investments agree. Putnam has just released a series of "absolute return" funds that promise specific percentage returns — 1%, 3%, 5% or 7% above the Merrill Lynch U.S. Treasury Bill Index (a gauge of inflation) — if investors hold on for three years or more. But like all things that seem too good to be true, so is the notion of a guaranteed return. Judging from the fund names — Absolute 100 (PARTX), Absolute 300 (PTRNX), Absolute 500 (PJMDX) and Absolute 700 (PDMAX) — shareholders could reasonably assume they would get the corresponding return. “It sounds like there are guarantees,” says mutual fund analyst Adam Bold. However, if you read the fine print in the funds' prospectus you’ll see they don’t actually have to meet the returns indicated in their names. The documents state the funds “are designed to pursue consistent returns” but acknowledge a potential “risk of loss.” What’s more, that risk may actually be greater in these funds than that of relative-return funds. Those offerings typically invest in specific asset classes like large-cap stocks or bonds and try to beat benchmark indexes instead of aiming for specific levels of return. Putnam’s absolute-return funds invest in all manner of stocks, bonds and other securities, which can leave more room for error. “The more choices you have, the easier it is to pick the wrong thing,” says Morningstar analyst Laura Lutton. Putnam CEO Robert Reynolds says the broad mandate actually reduces risk and volatility by allowing the portfolio managers to focus on meeting the return. “If you know what the return you need and want is, you can dial in and structure the portfolio to meet that,” says Reynolds. Putnam has used the strategy for years to invest for institutions and wealthy individuals, he adds. But, warns Larry Glazer, principal of Mayflower Advisors, just because a strategy works for institutions doesn’t mean it will work for retail investors. Reynolds may be enthusiastic because he needs a hit after shaking up the company's management ranks last year. Morningstar says assets in the company's open-end funds were chopped in half last year to $40 billion due to outflows and the market downturn. One thing to consider before buying in: fees. Annual expense ratios range from 1.82% to 2.82%, depending on the asset class. They promise to charge less if they miss their target returns — but not much less. The expense ratio for the Absolute 100 Fund only drops 0.04% if the fund does poorly. "That's still more expensive than a good balanced fund,” says Bold. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 30 Jan 2009 | 5:00 am Parents and the Financial Crisis: An UpdateEDITOR’S NOTE: With their retirement savings crushed by the 2008 market crash, millions of older adults are turning to their children for help. SmartMoney Senior Editor Beverly Goodman is one of those children, and she recently embarked on a special report, “Parents in Crisis” (read the full report here). Below, she continues to chronicle her experiences and thoughts as she helps her own mother address her finances. A Tax-Strategy SurpriseJanuary 30, 2008 My mom has always—and I mean always—taught me the importance of saving. You saved for the ill-defined, off-in-the-distance “rainy day” and you saved for anything (you thought) you just had to have now. (Endless hours of babysitting and an after-school job at the public library paid for a new violin and my first contact lenses.) When I graduated college my mom impressed upon me the importance of saving through a 401(k). Even though those accounts were relatively new, my mother immediately understood the importance of the tax breaks that came with them. Getting Started: The ABCsJanuary 26, 2008 Like so much in life, big change is often only evident after a slew of annoying little steps, detours and delays. While it didn’t take long for my mom’s new financial planner, Gary Schatsky, to open a TD Ameritrade account and migrate all of her assets, there was some work to be done before actually investing her money properly. For starters, my mother owned several B and C class shares of mutual funds—which meant there could be big fees levied on their sale. Brokers are paid by the fund company through these fees, or loads: Generally speaking, Class A shares come with an upfront sales charge but have the lowest annual fees. Class B shares incur a sales charge if they’re sold within a certain period of time, usually six or seven years—but carry a higher annual fee. Class C shares may have a small sales charge upon sale (or none at all), but you pay a high fee throughout, making them a very bad deal for long-term investors. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 30 Jan 2009 | 5:00 am Japan slows down amid record output fallThe depth of the downturn in Japan, the world's second-largest economy, emerged today with new figures revealing that industrial production plunged by a record 9.6 per cent and unemployment rose 0.5 per cent last month to hit a three-year high of 4.4 per cent.Source: Latest Business News from Times Online | 30 Jan 2009 | 4:46 am No commercial airport for WhenuapaiA proposal to build a commercial airport at Auckland's Whenuapai airbase has come to a grinding halt. Defence Minister Wayne Mapp met with Waitakere Mayor Bob Harvey today, and told him the airbase will be retained for the Royal...Source: New Zealand Herald - Business | 30 Jan 2009 | 4:24 am This Week’s Weird Jobs: Our Neighbor to the North Edition
All the jobs below come from Canada, which, despite having better healthcare, produces just as many strange occupations as the rest of the world: 1. Long Haul Team Drivers Minimum 2 years winter mountain driving experience. Q: What did the driver say to the truck? A: I play with your stick all day and all you give me is gas! 2. motel cleaner Clean rooms, throw garbabge and maintain general cleanliness around business. Must be pube-neutral. 3. Social Media / Viral Marketing Intern Are you someone who: 1. loves to blog Please submit your resume if you are interested in a unique opportunity at a hot new telecommunications company. You’ve built a reputation. Now, please become really, really annoying. We’ll pay you for it. Wait, just kidding, you’re an intern. Ruin your reputation for the sake of your resume. 4. DOOR TO DOOR SALES Base salary plus commission. Simple sale. Hours 4-8:30. Full training provided. Average $700wk. Will lead to a managerial position. Must sign a non-compete clause with Jehovah’s Witnesses. 5. Serving Girls I’m looking to hire 2 serving girls for a small (20-40) private party. Its a hockey party so yes, I’m looking for females to serve guys beer. Thats it, nothing more nothing less. There will be female guests as well. Prefer friendly outgoing personalities. Timing will be on a Saturday noon till midnight (with breaks). I’m offering $100 each plus whatever tips you get. It helps if you’re not a female hockey player. Happy Friday! Source: Business Pundit | 30 Jan 2009 | 4:07 am Don't pull down the shutters, says BollardA rally call went up from New Zealand's central bank today not to be defeatist about the major international economic crisis we find ourselves in. Reserve Bank governor Alan Bollard yesterday cut the official cash rate (OCR) to...Source: New Zealand Herald - Business | 30 Jan 2009 | 4:00 am Air NZ axes trans-Tasman flights from HamiltonAir NZ says it is axing its last remaining trans-Tasman flights out of Hamilton. Last year it announced it was "suspending" flights between the city and Sydney and Hamilton to the Gold Coast during the quieter period between April...Source: New Zealand Herald - Business | 30 Jan 2009 | 3:30 am Building consents slump to 20-year lowThe number of new homes being authorised has slumped to the lowest level in more than 20 years. Building statistics released today show there were just 1127 housing units consents last month, the lowest monthly total since January...Source: New Zealand Herald - Business | 30 Jan 2009 | 3:00 am New York City seen to increase spending cutsCity dwellers will have to cope with billions of dollars more in spending cuts and thousands of city workers could lose their jobs, under a plan the mayor is due to unveil, a source saidSource: Financial Times - US homepage | 30 Jan 2009 | 2:56 am What’s Tom Haggard’s Angle?I live smack dab in the middle of Middle America so I wasn’t surprised when yesterday’s Oprah was censored. While the rest of the country was hearing the lurid details of the fall of evangelical Tom Haggard, I got a rerun on how to organizational my home. I suppose some well meaning local media executive didn’t want Haggard’s laundry aired all over his station. Whoever made that call wasn’t doing Haggard any favors. As the day wore on and Haggard’s story was covered by every major news outlet, it was easy to see what was going on: a press junket. Just as Brad Pitt and Angelina Jolie have to hit the talk show circuit to plug their movies, so does Haggard. A documentary about his fall from grace premiered on HBO last night. But when I did a little more reading, I learned that Haggard did not get paid for appearing in the film, and will not receive any kind of royalties. So what’s his angle? If you believe he’s out to save the world, then maybe Tom just went on Oprah to enlighten us all about the perils of homosexuality and drug use. If you believe he’s a business man, like me you’re probably wondering what he’ll try to sell us on the heels of all this free publicity.
Haggard is clearly a savvy promoter. He’s turned an episode of extreme personal shame into a brilliant marketing opportunity. I just can’t wait to find out his angle. If you’re curious like me, watch Haggard on Larry King tonight. Source: Business Pundit | 30 Jan 2009 | 2:50 am Obama slams 'shameful' Wall St bonus cultureWASHINGTON - President Barack Obama has issued a withering critique of Wall Street corporate behaviour, calling it "the height of irresponsibility" for Wall Street employees to be paid more than $US18 billion in bonuses last year...Source: New Zealand Herald - Business | 30 Jan 2009 | 2:30 am Trends & Innovations - ThursdayHalf of Americans want to moveSource: Investor's Business Daily: BUSINESS | 30 Jan 2009 | 1:02 am IT Firm Sets Its Sights On Digitizing Medical RecordsTo Neal Patterson, a simple pen in the wrong hands is a dangerous weapon.Source: Investor's Business Daily: BUSINESS | 30 Jan 2009 | 12:30 am After The Close - ThursdaySTANLEY (SXE), a provider of IT services, said Q3 EPS surged 41% to 41 cents, a nickel better than views. Sales grew 38% to $204 mil. Shares rose...Source: Investor's Business Daily: BUSINESS | 30 Jan 2009 | 12:30 am Lending Is Changing; Getting A Mortgage May Take Bank VisitMortgage brokers are now nearly as stressed as homeowners, having lost both customers and lending options.Source: Investor's Business Daily: BUSINESS | 30 Jan 2009 | 12:30 am In Brief - ThursdayUnder Armour (UA), a sports apparel maker, said its Q4 EPS fell 50% to 17 cents, meeting views. Sales rose 3% to $179.3 mil, below views. Shares...Source: Investor's Business Daily: BUSINESS | 30 Jan 2009 | 12:30 am Business Briefs - ThursdayPrice hikes boost Colgate profit. The household products maker said Q4 EPS increased 10% to $1 ex items, beating views by 2 cents. RevenueSource: Investor's Business Daily: BUSINESS | 30 Jan 2009 | 12:30 am Bank advisers charge £60m in fees – but insist that it’s a bargainWhen times are good, advising the Government is not a great money-spinner for investment banks and law firms. But when there is little lucrative corporate work around, the Treasury looks much more attractive.Source: Latest Business News from Times Online | 30 Jan 2009 | 12:01 am Obama slams Wall Street over bonusesBarack Obama on Thursday lashed out against 'shameful' Wall Street executives for claiming billions of dollars in bonuses even as their stricken institutions turned to taxpayers for supportSource: Financial Times - US homepage | 29 Jan 2009 | 11:22 pm Investors seeking safety flock to Ginnie Mae funds (AP)AP - Home foreclosures and market volatility are running high. So any investment even remotely connected to mortgages is the last place to look if you're trying to protect your retirement savings, right?Source: Yahoo! News: Business | 29 Jan 2009 | 11:16 pm How the major market indexes fared (AP)
Source: Yahoo! News: Stock Markets News | 29 Jan 2009 | 11:12 pm Harvard's Porter Grades Obama Stimulus Plan `C-Minus'Source: Bloomberg - All Podcasts | 29 Jan 2009 | 11:10 pm McCarthy Says U.S. Unemployment Rate May Exceed 9%Source: Bloomberg - All Podcasts | 29 Jan 2009 | 11:07 pm VIX Index Advances 7.5% to Close at 42.63Source: Bloomberg - All Podcasts | 29 Jan 2009 | 11:04 pm Northern Trust Bows Out of NETSSource: Bloomberg - All Podcasts | 29 Jan 2009 | 11:02 pm 100 jobs cut as CEO attends job summit, says bank unionEven as the ANZ National Bank is cutting 100 jobs to outsource work to India its chief executive is to attend attend a job summit on how to keep New Zealanders in work, the union for financial workers says. Finsec said today the...Source: New Zealand Herald - Business | 29 Jan 2009 | 11:00 pm Save? Spend? What To Do?We've been hearing from some of you that you're trying to save more, that you're either tired of what feels like over-consumption or that you want to hunker down in case you lose your jobs. Others of you tell us that you've decided to spend a little more, here and there, to help a local business or to prop up the economy in general. That debate plays out in the slideshow above, with ad campaigns from the U.S. and Finland. What we keep asking ourselves at Planet Money is not just how we're changing our spending/saving habits, but whether those changes will last. Hit the comments, please. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Jan 2009 | 10:34 pm Write-Offs: 01.29.09$$$ Sun, sea and sewage in the playground of the rich in Dubai [Times Online] $$$ Fortress Investment Group On The Edge Of Insolvency [Zero Hedge] $$$ 1-2 Knockout Product Desk Introduces the "Short Human" Series of Structured Funds and Notes [1-2]
Source: Dealbreaker | 29 Jan 2009 | 10:10 pm Amazon.com profit beats Wall St. view; shares rise (Reuters)
Source: Yahoo! News: Business | 29 Jan 2009 | 9:58 pm Bank Of America's War On Styrofoam, Part II
Earlier: Bank of AmerillWide Employees Stock Up On Contraband Layoffs Watch '09: BAC Cutlery
Source: Dealbreaker | 29 Jan 2009 | 9:51 pm Presented Without Comment: J to the D-I-M-O-N
JAMIE DIMON: MY PLEASURE. BARTIROMO: CAN YOU CHARACTERIZE WHERE WE ARE RIGHT NOW IN THIS ECONOMIC SLOWDOWN, IN THIS TIGHT CREDIT ENVIRONMENT? DIMON: YOU KNOW, MARIA, I THINK IT'S ALMOST IMPOSSIBLE TO DO BECAUSE I'VE NEVER REALLY SEEN PEOPLE FORECAST THE FUTURE. THE REAL INFLEXION POINT IS THE ECONOMY. YOU KNOW, WE'VE HAD A PRETTY SHARP DOWNTURN. AND I THINK IT'S BEING SEEN AROUND THE WORLD. AND THE REAL QUESTION IS DOES IT LEVEL OFF FROM HERE OR DOES IT GET A LITTLE BIT WORSE BEFORE IT LEVELS OFF? BARTIROMO: AND YOU TALK TO SOMEONE LIKE NORO RUBINI (PH), HE SAYS THAT THE WORST IS AHEAD. DIMON: HE MAY BE RIGHT. YOU KNOW, I MEAN, AS-- AS A PRESIDENT OF A COMPANY, WE PREPARE FOR THE WORST AND HOPE FOR THE BEST. SO-- YOU KNOW, I THINK THE BEST YOU'RE GONNA REALLY HOPE FOR IS TWO BAD QUARTERS AND THEN A-- AND THEN A RECOVERY. I MEAN, IT COULD BE WORSE THAN THAT. BUT I THINK AT LEAST THAT IS IN THE CARDS. BARTIROMO: SO EVEN WITH THE STIMULUS PACKAGE BEING TALKED ABOUT AND, YOU KNOW THIS EFFORT TO GET THE BANKS TO LEND, A LOT OF PEOPLE SAY, LOOK, THE BANKS STILL AREN'T LENDING ENOUGH. IS JP MORGAN LENDING? DIMON: YES. SO I DON'T REALLY THINK THAT IS TRUE ABOUT THE BANKS NOT LENDING. AND IF YOU LOOK AT ACTUALLY AGGREGATE NUMBERS, THE BANKS' BALANCE SHEETS ARE ABOUT WHAT THEY WERE BEFORE. I SPEAK TO A LOT OF BANKERS, A LOT OF BANKS MAKING LOANS. IN FACT, JP MORGAN ALONE IN THE LAST 90 DAYS HAS MADE OVER $150 BILLION OF LOANS, INCLUDING $50 BILLION-- WHICH LIKE WE HAVE OUT TODAY IN THE INTER-BANK MARKET. SO I THINK WHAT HAPPENED IS A LOT OF BANKS ARE LENDING. BUT A LOT OF OTHER PEOPLE WHO LENT TO THE MARKETS, MONEY MARKET FUNDS, BOND FUNDS, AREN'T. SO I THINK PEOPLE GET A LITTLE CONFUSED ABOUT WHO'S OUT THERE LENDING AND WHO'S NOT AND-- WE'RE-- WE'RE GONNA TRY TO GET MORE INFORMATION OUT 'CAUSE I THINK IT'S A GOOD QUESTION PEOPLE ASK IS, "ARE YOU LENDING?" AND-- YOU KNOW, WE ARE.
Source: Dealbreaker | 29 Jan 2009 | 9:29 pm The Santander SlashThe nice thing about having a bunch of branch offices, subsidiaries or related entities with a large corps of middle managers is that you have a huge cushion against the massive losses you will incur when you do such limited due diligence that you get snagged in a big Ponzi scheme. So no one here at Dealbreaker was particularly surprised when we got a totally unfounded tip which boils down to: Santander cut through mid-management in the Boston office making it more arid than B. Arthur's privates...or is that liquidity drying up faster than B. Aurthur?...well you know. Color us unamazed.
Source: Dealbreaker | 29 Jan 2009 | 8:28 pm Layoffs Watch '09: Morgan StanleyAnother round of cuts is said to be scheduled for February 10.
Source: Dealbreaker | 29 Jan 2009 | 8:08 pm Graph: State UnemploymentPlanning your next move? Wondering where your state stacks up now that the football season is almost over? The Bureau of Labor Statistics publishes monthly unemployment data. I've made a chart from labor force data, one of two ways unemployment is measured (the other is from payroll data). Click here to see the past three months of data. I was surprised to see places like Oregon and D.C., where there have been no big layoff announcements, near the top of the list. What are you seeing? » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 29 Jan 2009 | 7:52 pm Meacham Discusses President Jackson's White HouseSource: Bloomberg - All Podcasts | 29 Jan 2009 | 7:22 pm Why Open?According to our vibrant tip-line: [JP Morgan] open-sourced the CDS analytics engine because no one remembers which precise version of the "binaries" (compield source) code was originally handed over to Bloomberg to fuel the CDSW page. Seriously. Earlier: Open Source CDS Analytics?
Source: Dealbreaker | 29 Jan 2009 | 7:10 pm Shiller Sees `Paradigm Shift' in Financial TheorySource: Bloomberg - All Podcasts | 29 Jan 2009 | 7:09 pm Stiglitz Says U.S. Needs More, Better Stimulus AllocationSource: Bloomberg - All Podcasts | 29 Jan 2009 | 7:05 pm Say It To His FaceVia proxy! While we can't get you up in Bernie Madoff's grill (yet), we are offering Dealbreaker readers the opportunity to ask one of the Ponz. Master's minions, "WTF were you thinking?" or something along those lines. Here's the deal: a friend of DB, who is an investor in one of the Madoff feeder funds, is meeting with his firm in the near future, mostly to discuss them losing all his money. But he's also graciously offered to pose any questions you people might have, time permitting. We won't name the fund, on the off-chance they put 2 and 2 together, though you can probably guess. We'll take the five best questions and forward them on (and provide a full report with Q's and A's once we have them). Real queries should be e-mailed here, ones that will categorically not be asked left in comments (to protect our devoted investor from inadvertent disclosure).
Source: Dealbreaker | 29 Jan 2009 | 7:00 pm Even Dilbert gets the bootLife in the cubicle for comic strip character Dilbert has been chronicled for years in newspapers worldwide. But even Dilbert isn't immune to the recession. Creator Scott Adams speaks with Kai Ryssdal about why Dilbert is joining the unemployment line.Source: Marketplace | 29 Jan 2009 | 6:20 pm Portland realtor deals in tough marketHome sales continue to plunge, which must be pretty frustrating for real estate agents who depend on commissions from home sales. Mitchell Hartman spends time with one of them in Portland, Ore.Source: Marketplace | 29 Jan 2009 | 6:20 pm 4 seasons not on orchestra's programIn winter the Cleveland Orchestra wings it to Miami, Fla. Not in search of warmer weather, but rather for revenue it can't find in its hometown's frozen economy. Dan Grech reports.Source: Marketplace | 29 Jan 2009 | 6:20 pm California running out of cashCalifornia is $40 billion in debt, and lawmakers can't agree on how to balance the budget. If the state can't scrounge up the money to pay off looming bills, things could get a whole lot worse. Marianne Russ reports.Source: Marketplace | 29 Jan 2009 | 6:20 pm Panel pushes for more TARP regulationThe Congressional Oversight Panel for TARP says lack of regulation is a key cause of the financial crisis. Elizabeth Warren, the panel's chair, speaks with Kai Ryssdal about the new regulations it is urging the government to implement.Source: Marketplace | 29 Jan 2009 | 6:20 pm FICO changes its scoreFair Isaac Corp. announced that TransUnion is the first credit bureau to offer its new FICO 08 credit score to lenders. What do these changes mean for consumers? John Dimsdale reports.Source: Marketplace | 29 Jan 2009 | 6:20 pm Unemployment cuts across classesNearly every industry is seeing sweeping layoffs in this recession. The job cuts aren't limited to the lower rungs of the socioeconomic ladder, either. Ashley Milne-Tyte reports.Source: Marketplace | 29 Jan 2009 | 6:20 pm A Word From H.L. MenckenOur colleague Andrea Seabrook sends along this excerpt from H. L. Mencken's essay "What Is Going On In the World," published in The American Mercury, March, 1933: The psychic effect of the depression, it seems to me, is generally a good one.... It has taught people the difference between speculative values and real values. It has hastened the death of sick industries, and proved the vigor of sound ones. It has blown up the old delusion that the amount of money in the world is unlimited, and that every American is entitled to a police captain's share of it. Best of all, it has taught millions that there is really no earthly reason why there should be two cars in every garage, and a chicken in the pot every day. A few years back we were all leaping along after the pacemakers, and making shining fools of ourselves. Life in America had become an almost unanimous effort to keep up with the Joneses, and what the Joneses had to offer by way of example was chiefly no more than a puerile ostentation. So many luxuries became necessities that the line separating the one from the other almost vanished. People forgot altogether how to live well, and devoted themselves frantically to living gaudily. It seems to me that the depression will be well worth its cost if it brings Americans back to their senses. Once they rediscover the massive fact that hard thrift and not gambler's luck is the only true basis of national wealth, they will discover simultaneously that a perfectly civilized and contented life is possible without the old fuss and display. Seabrook's take on this essay -- "eerie." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Jan 2009 | 6:10 pm 6 People Who Look Unemployed…But Aren’tThis article originally appeared at unemploymentality.com. It has since been updated for Business Pundit. Unemployentality’s John Henion claims unemployed people love pundits. So here goes. With the economy being what it is, it’s easy to get carried away and begin to think that everyone you see in your neighborhood without a spring in their step to be unemployed. True, there are people that exhibit some signs of what we have come to define as “the unemploymentality:” A transformative state of mind caused by a sudden loss of job and resulting in thriftiness, panic and/or lethargy. But a lot of these people are what we like to call “borderliners,”- they’re not unemployed, but they sure as hell act like it. To keep your socio-economic profiling on course, here are a few people in your neighborhood that exhibit borderline behavior:
1. Old People: Although they wake up at an ungodly early hour, they just putz around all day doing crosswords, pruning flower gardens and talking about the ‘good ol’ days.’ Sound familiar? Yes, if you didn’t know any better, you would swear you’re talking to your buddy, Ricky from Accounts Receivable, who got laid off on the same day that you did. But you’re not. You’re talking to an old guy that lived through two wars, 30 years at the plant, and now trumps your unemployment check with Social Security, Medi-caid and a pension.
2. Children: Sure, all they do is eat, sleep and play video games just like you, but society actually approves of this behavior if you’re under 18. They even provide special shelters for children called “schools” where they can enjoy the camaraderie of their peers free from all the questions and sympathy the rest of us face from family and friends with jobs. And for the haters out there that think we’re milking the system by collecting unemployment checks while we get our feet underneath us again, the next time you drive by a playground, think about the school taxes you’re paying as welfare with training wheels. Kids eat free!
3. Freelancers: Throw a stone at your local coffee shop and you’re likely to hit at least three freelancers. And freelancing may as well be called, “professional unemployment.” They work 24 hours a month (spread over 20 days) and make more money than I ever did at my fulltime job. But they act just as broke as us because their next paycheck is always an unknown.
4. Stay-at-home Dads: I bet you thought that hip, young guy with a stroller and matching diaper bag was recently laid off, didn’t you? No, that guy has way too much experience with children to have the unemploymentality. He’s a stay-at-home daddy. Dads with the unemploymentality are the ones standing in the front yard smoking a butt and spraying their child with a garden hose because they don’t ‘do’ diapers. In fact, unemployed dads are rarely, if ever seen in public. If you do see one, keep your distance.
5. Do-gooders: Marching up and down the sidewalk, begging for signatures for this cause or that cause, they actually appear to be gainfully employed. But with them traveling from cause to cause from Portland to San Francisco to Santa Fe and living in vans or eight deep in two-bedroom apartments, their unemploymentality may be stronger than the rest of ours. Respect them, learn their ways and you may find yourself ready for the economic apocalypse to come.
6. Holy Rollers: Walking around aimlessly while pondering the meaning of life seems to attract the company of frumpy older woman in sensible shoes with hip pouches full of scripture. They’ve even started to come to my door during the day. At first, I thought that this was just a religious response to unemployment – I blog to pass the idle hours, they bring pagans to Christ. But I later learned that most of these bible bangers are actually housewives suffering from empty-nest syndrome. Usually I just give ‘em a hug and ask them if they want to play Grand Theft Auto and they’re on their merry way. Source: Business Pundit | 29 Jan 2009 | 6:04 pm Honest Tea Only One Aspect of Obama’s .com Management Style
The New York Times has reported that President Obama stocks his fridge with Honest Tea, an organic, Fair Trade, and unconventional beverage symbolic of the many cultural changes he is making within the White House. The article–read it here–went into detail about Obama’s management style, which is remarkably similar to what .coms exhibited earlier this decade. Here are the main ways Obama’s management style resembles that seen in .com organizations (using citations from the NYT article): Accessibility: Mr. Obama has exhibited a relatively informal working relationship with aides like his staff secretary, Lisa Brown. In a visit to the Capitol on Tuesday, Mr. Obama surprised his former Senate colleagues by stopping to talk to reporters. Casual dress: An ironclad rule of the George W. Bush administration — coat and tie in the Oval Office at all times — fell by the wayside, only the first of many signs that a more informal culture is growing up in the White House under new management. The president issued an informal edict for “business casual” on weekends. Source: Business Pundit | 29 Jan 2009 | 6:02 pm Evans Says Wall Street Journal `Improved' Under MurdochSource: Bloomberg - All Podcasts | 29 Jan 2009 | 5:47 pm Evergreen's Patel Sees Continued Demand for TreasuriesSource: Bloomberg - All Podcasts | 29 Jan 2009 | 5:37 pm Bonus Watch '09: You Get NOTHING (Not Even Toxic Waste)CNBC reports that managing directors in UBS's investment management division will receive neither cash nor stock in '09. As for 2010? Bonuses shall be 100 percent stock, with a three year vesting period attached to 1/3 of the package. AND if UBS has a loss over those three years, clawbacks will ensue. Related: Bonus Watch '09: BAC Get Bupkis
Source: Dealbreaker | 29 Jan 2009 | 5:34 pm The Lilly Ledbetter Fair Pay Act: Good for Lawyers, Bad for Employers
Barack Obama recently passed the Lilly Ledbetter Fair Pay Act, which broadens employees’ rights vis-a-vis suing for pay discrimination. MartketWatch reports: The Ledbetter law widens the time frame during which employees can claim pay discrimination. The law amends other civil rights legislation to clarify that each new paycheck is a chance to file discrimination charges against employers — a stance that courts had commonly taken prior to a controversial 2007 Supreme Court decision that narrowed the window. The Supreme Court had found that Lilly Ledbetter, who retired in 1998 and worked for Goodyear Tire & Rubber Co. for almost two decades before an anonymous tipster informed her she was paid less than male co-workers, had waited too long to file a charge because she did not complain within 180 days of the original discriminatory pay decision. In some states the window is 300 days. Employers that aren’t already keeping good records on pay for workers may want to start, said Neal Mollen, a partner in the employment department at law firm Paul Hastings. “We are advising our clients that they need to look at record-retention policies, look at the kinds of records they currently have, and how they can revise them to be more descriptive for the future,” said Mollen, who represented the U.S. Chamber of Commerce during the Ledbetter case. “I think employers going forward are going to want to make sure that when they are making pay decisions, the decisions and rationale are reflected someplace in a written document that will survive the manager.” Ledbetter is a pain for employers, and a boon for lawyers. But the move is more symbolic than industry-changing. A few people with access to a lawyer and a previously closeted vendetta may sue, certainly. But the MarketWatch article points out that you need money to sue someone, and I agree with that. Who has the juice to sue an employer right now? In better times, when there’s money to go around, Ledbetter might prop up a cottage industry of compliance experts and specialty lawyers. For business owners with a salaried employee base, however, it will always remain a headache. It won’t push business owners away from salarying, but could be part of a bigger equation to nix a non-contract workforce. That, I think, is the scariest possible outcome of the bill.
(required)
(required)
Source: Business Pundit | 29 Jan 2009 | 5:23 pm Niall Ferguson Sees Need for New, Trustworthy BanksSource: Bloomberg - All Podcasts | 29 Jan 2009 | 4:54 pm President Introduces New “Wagyu Steak” Cocktail Party
The presidential cocktail party took place last night, just in time to celebrate the passage of the new, monopartisan stimulus package. ABC News reports: Six House Democrats, six House Republicans, six Senate Democrats, six Senate Republicans (were invited, along with their spouses). In addition…several senior White House staffers will be in attendance, including press secretary Robert Gibbs, senior adviser David Axelrod, senior adviser Pete Rouse, and deputy chief of staff Mona Sutphen. Hors d’œuvres — chicken curry, wagyu steak — will be served in addition to drinks. The steak part is where the story gets interesting. Let’s assume that more than 52 people attended the party. Wagyu porterhouse (otherwise known as Kobe) can costs up to $100/lb. MSNBC describes what it is: The ne plus ultra of beef is commonly known as Kobe, but Kobe is merely the prefecture in Japan where insanely expensive meat, sometimes $500 a pound for the real thing, happens to be produced. These are the well-known cows whose diet is reputedly augmented with sake and beer, and regular massages to soften their meat and enhance the marbling of their fat. Kobe beef comes from Wagyu cattle, much as French Champagne comes from pinot noir and chardonnay grapes. If you happen to eat Kobe-style beef in the United States, it’s probably from Wagyu cattle raised over here, though the folks in Kobe haven’t waged a geographic labeling war like the winemakers of Champagne did. Wagyu beef is exquisitely tender, with soft fat that can all but melt at human body temperature, meaning it must be handled with care — should you be lucky enough to get your hands on some. Moral of the story: Politicians are once again telling us to buckle down for hard times while using tax dollars to dine on melt-in-your-mouth delicacies. Time for a cookout, guys. It would be more inspirational. Source: Business Pundit | 29 Jan 2009 | 4:49 pm No Buffalo Wings, No PeaceGot this today from NPR alum Dan Pashman: They say that when your friend loses his job, it's an economic slowdown. When you lose your job, it's a recession. And when an economist loses his job, it's a depression. By that logic, this economic crisis just became my Waterloo. As someone lucky enough to be gainfully employed, I have watched this great unraveling with anger at those responsible, sympathy for those less fortunate and concern for us all. But it hadn't fully hit home. Until now. That's because the Super Bowl is this Sunday, and there's a SHORTAGE OF BUFFALO WINGS IN AMERICA. That's like Wimbledon running out of strawberries and cream, or the French Open running out of contempt. How did this happen? Buffalo wings are often in short supply ahead of the big game, but that problem was made much worse when Texas-based Pilgrim's Pride, the nation's largest chicken producer, filed Chapter 11 in December. How on earth are Americans supposed to watch the Super Bowl without buffalo wings? What kind of sauce will we inadvertently spill on ourselves? What will our children think? What if we lose weight?! This is awful. The only consolation might be that this year, the martini drinkers are suffering right alongside the Bud swillers. Far fewer private jets are being chartered to the game, and scalpers are getting a measly $3,100 a ticket, down about 40 percent from last year's prices. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Jan 2009 | 4:24 pm Indicator: Team NamesCormac Eubanks sends one of my favorite indicators to date -- the team names from his local pub trivia game. He writes: I live in San Francisco and the Bay Area had been considered somewhat insulated from the downturn as Silicon Valley is less dependent on the traditional banking system than it is from small private investors. Recently though the stories of friends being laid off at companies large and small have become more numerous. Here's an interesting indicator of how the trend is beginning to settle in even here. At a pub quiz last night at the Edinburgh Castle, 3 of the 10 team names in the bar were: - "8,000 Sprint Employees Now Have Free Daytime Minutes" - "I Was Told There Would Be Cake in the Breakroom and Instead They Laid Us Off" - "Other People's Pinkslips" » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Jan 2009 | 4:08 pm Trend Du JourVia Freakonomics and Bo Cowgill, we have a trend that may or may not shock you: the number of Google searches for "coupon" has exceeded the number of searches for "Britney Spears," a sign, according to Justin Wolfers, that we are most certainly in a recession. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Jan 2009 | 3:50 pm Fight Stimulus With... Stimulus
The libertarians at CATO took out a full page advertisement in the Times, Post and other papers yesterday opposing the stimulus package. It ran the same day as this story in the Times about declining newspaper ad revenue. Which I suppose makes their point. Though they're going to have to take out a lot of ads to save the newspaper business. I just got word that where I live, the Baltimore Examiner will be closing, though there's no notice on their website as I post this. And boy, strange times when a newspaper ad for the general public can begin with a reference to the Keynesian school of economic thought. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 29 Jan 2009 | 3:37 pm New Unemployment RecordThe new job loss numbers are in -- Ian Shepherdson of High Frequency Economics says the weekly figures are shifting, with something like 588,000 new claims for unemployment benefits last week. Shepherdson notes that 4,776,000 people are getting benefits, a new record, as hiring slows and layoffs increase: The net result of this is soaring unemployment, and we see no chance of this picture changing in the foreseeable future. We expect net job losses of about 3 million through the first half of this year. Calculated Risk says the U.S. situation is already as bad as it was in the 1990-91 recession. At the World Economic Forum in Davos, global leaders are blaming the U.S. for the economic crisis. And Democrats in the House of Representatives muscled the economic stimulus bill through, which now goes to the Senate as an $819 billion package. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 29 Jan 2009 | 2:14 pm
|
