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NewsWatch: Senate debates details of $780 billion stimulus compromiseSenators' compromise with moderate Republicans paves the way for a vote in the chamber and hands Obama a legislative victory on his highest economic priority.Source: MarketWatch.com - Top Stories | 8 Feb 2009 | 2:00 pm Chancellor warns RBS over bonusesChancellor Alistair Darling tells RBS failure should not be rewarded with huge bonuses, but he cannot rule out pay-outs for some staff.Source: BBC News | Business | World Edition | 8 Feb 2009 | 1:58 pm Geithner: Banks need to modify loansRead full story for latest details.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:53 pm What was cut from stimulusA coalition of Democrats and some Republicans reached a compromise Friday that trimmed billions in spending from an earlier version of the massive economic recovery package.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:52 pm All eyes on WashingtonStocks broke a four-week losing streak last week on hopes that Washington's stimulus package and revamped bank rescue plan will slow the pace of the 14-month old recession.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:50 pm How to really fix banksThe Obama administration is about to face its first significant financial test.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:49 pm Obama's options to solve housing messThis much we know -- the Obama administration wants to set aside between $50 billion and $100 billion to address the foreclosure crisis.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:46 pm HUD Secretary: Must limit foreclosuresWith Treasury Secretary Tim Geithner set to unveil a new plan to help banks and homeowners Monday, and the Senate tentatively prepared to vote on a $780 billion stimulus bill Tuesday, this will a busy week in Washington.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:46 pm The jobs problem you don't know aboutJanuary was one of the worst months for layoffs ever, with nearly a quarter-million job-cut announcements grabbing headlines.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:42 pm Take this TARP and shove it? Not so fast.Goldman Sachs wants to give back the $10 billion it received from the government last year. But it may not be that simple.Source: Business and financial news - CNNMoney.com | 8 Feb 2009 | 1:42 pm Grim results predicted for UBS, Credit SuisseGENEVA (Reuters) - Swiss newspapers expect the country's top two banks, UBS AG and Credit Suisse Group AG to announce record losses for 2008 this week and predict UBS will unveil thousands of job cuts.Source: Reuters: Business News | 8 Feb 2009 | 1:19 pm GM to meet on debt revamp; eyes more salaried-job cuts: BloombergGeneral Motors Corp. plans to meet with its bondholders and union officials on Monday and Tuesday to negotiate a government-ordered debt restructuring, Bloomberg News reported on Sunday.Source: MarketWatch.com - Top Stories | 8 Feb 2009 | 12:55 pm Top chef closes four restaurantsCelebrity chef Antony Worrall Thompson has had to put his company into administration, making 60 staff redundant.Source: BBC News | Business | World Edition | 8 Feb 2009 | 12:51 pm Amazon (AMZN) Sales Versus The Gutenberg Bible
Based on new accounts, Amazon (AMZN) will release a new version of its electronic book reader, the Kindle, sometime this week. Many analysts believe that it will be a multi-billion dollar product for the e-commerce company. That may not be true. The Kindle could turn out to be the most recent incarnation of the hula hoop, a novel product that sold well in the early 1960s and then disappeared. Amazon may have a big seller on its hands, but it is just as likely that it will be a bust. Changing people’s long held habits may be harder than Amazon expects. Douglas A. McIntyre Tagged: AMZN      Source: 247 Wall Street | 8 Feb 2009 | 12:50 pm Fortis' largest shareholder to vote against BNP bidFortis' largest shareholder, China's Ping An Insurance, said Sunday it would vote against a revised bid by France's BNP Parisbas to take over the collapsed Belgian bank. Ping An "intendsSource: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 12:41 pm All eyes on US Treasury's upcoming banking planA rescue plan to be unveiled Monday by the administration of President Barack Obama is likely to impose restrictions on the financial system and provide relief for homeowners, analysts...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 12:28 pm AT&T, cellular workers' union continue labor talks as pact endsAT&T and its wireless-service workers agreed to continue bargaining over a new labor contract after their previous agreement expired just after midnight Sunday, the Communications Workers of America said.Source: MarketWatch.com - Top Stories | 8 Feb 2009 | 12:09 pm Britain probing link between bonuses, risk-takingBritain announced Sunday it will look into whether the promise of big bonuses lured bankers into taking excessive risks, precipitating the global financial crisis. It will do so as part...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 11:51 am Swiss votes on EU worker rightsSwitzerland votes on whether to continue to allow in EU workers, and whether to extend that right to Romanians and Bulgarians.Source: BBC News | Business | World Edition | 8 Feb 2009 | 11:43 am TABLE-Israel foreign direct investment $584 mln in DecFeb 8 (Reuters) - Foreigners injected $584 million of direct investment into Israel through local banks in December, after pumping in $348 million in November and $444 million in October, the Bank of Israel...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 11:43 am Australia fires kill dozens and destroy homes and landAustralia's worst fire disaster has killed at least 84 people, destroyed at least 700 homes, and burned a half-million acres of land, media reports said.Source: MarketWatch.com - Top Stories | 8 Feb 2009 | 11:15 am French banks to clamp down on trader bonusesFrench banks will present a plan this week to regulate pay and bonuses for traders, in a bid to discourage them from taking excessive risks, a financy ministry official said. The French...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 11:06 am VeraSun proposes to sell some assets to Valero for $280 millionVeraSun Energy Corp. filed a proposal in bankruptcy court to sell a number of its assets to Valero Energy Corp. for $280 million.Source: MarketWatch.com - Top Stories | 8 Feb 2009 | 10:27 am Two banks in California, one in Georgia closed by regulatorsRegulators shut two banks in California and one in the Atlanta area on Friday, bringing the number of U.S. failures this year to nine, while marking the 34th collapse since the recession began.Source: MarketWatch.com - Top Stories | 8 Feb 2009 | 9:34 am Which fund managers deserve the red card?Now is a good time to review your portfolio to decide which fund managers you should keep and which you should ditch.Source: Telegraph Finance | 8 Feb 2009 | 8:21 am Deflation: When low prices buy high anxietyIn a weak economy, prices may drop, but so do wages and job security. Wedding photographer Pogos Kuregyan has...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Relative needs credit counseling, not a bailoutDear Liz: My spouse's siblings have decided my husband and I should lend his brother $11,000 to pay off three credit card bills since they "can't." He says the interest rates are killing him and that...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Without huge salaries, financial leaders won't try hard?Wall Street could learn a thing or two from 24-year-old video-store clerk Beatriz Corrales.Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Mortgage 'cramdowns' could be on the wayCongress is poised to pass legislation long blocked by lending-industry groups that would empower Bankruptcy Courts to let homeowners file for bankruptcy protection on their principal residence. ...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Santa Monica's Olympic Studios are small but stylishThe 365-square-foot, well-located apartments squeeze in plenty of amenities. Best of all, they're affordable. ...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Tips for navigating the new 2008 tax rulesCongress made 500 changes last year, and some could affect and even help you. Here are some highlights. If you...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am From tech bubble to tech bobbleheadsThe former Silicon Valley engineer is taking bobblehead realism where no bobblehead has gone before. Customers are nodding their approval. ...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Complaints about cellphones lead Better Business Bureau listThe cellphone industry had 36,710 complaints against it, and new-car dealers came in second with 27,555 complaints, according to the organization. ...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Seeking a honey who can handle her moneyIf a guy asks you out on a date, the traditional presumption is that he will pay for the date. You may already know Alana Semuels from...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Sellers must disclose problems with homeQuestion: The people who were buying our home hired a home inspector. We were told about a few of the problems the inspector found, but no one gave us a copy of the report. The sale of the property was...Source: RSS feed - channel BNPaperBusiness | 8 Feb 2009 | 8:00 am Piramal Health says Glaxo, Sanofi acquisition reports unfoundedMUMBAI (Reuters) - Indian drug maker Piramal Healthcare Ltd said reports about a potential sale of the company to GlaxoSmithKline Plc or Sanofi Aventis SA were 'unfounded.'Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 6:27 am Piramal Health says Glaxo, Sanofi acquisition reports unfoundedMUMBAI (Reuters) - Indian drug maker Piramal Healthcare Ltd said reports about a potential sale of the company to GlaxoSmithKline Plc or Sanofi Aventis SA were 'unfounded.'Source: Reuters: Business News | 8 Feb 2009 | 6:27 am Piramal Health says Glaxo, Sanofi acquisition reports unfoundedMUMBAI, Feb 8 (Reuters) - Indian drug maker Piramal Healthcare Ltd said reports about a potential sale of the company to GlaxoSmithKline Plc or Sanofi Aventis SA were 'unfounded.'Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 6:12 am Chinese mining group to invest 1 bln dollars in PeruThe Chinese-owned mining company Shougang Hierro Peru is to invest one billion dollars to expand production at its plant in southern Peru by 10 million tonnes per year, the company's...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 5:28 am Legions facing layoffs turn to parties, InternetThe bar was crowded with well-dressed professionals enjoying drinks and conversation, a typical evening _ except that many of them had no job. The event was a Wall Street Pink Slip...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 5:09 am Malaysia to lower electricity cost by 7-10 pct: reportsMalaysia will lower electricity tariffs for households and industry by 7-10 percent by the end of the month, said Energy Minister Shaziman Abu Mansor, according to reports Sunday. ...Source: RSS feed - channel BNewsBusiness | 8 Feb 2009 | 5:08 am Management Forecasts And The Inevitability Of Exaggeration
The press has not learned, despite repeated experiences, that televangelists, medical researchers, elected politicians and chief executive officers are often incapable of telling the truth. That is not to say that they are liars. It only means that, at their core, all of the people in these professions are driven to make their world look as bright as possible. Every Congressman promises to bring prosperity to his district even if the next set of appropriations will send his constituents nothing. CEOs are rarely willing to say that their companies are in trouble. In the last week, the chief executive of GE (GE), Jeff Immelt, said that his company would both continue its dividend and keep its “Aaa” rating. Soon after, GE said that it would reexamine its dividend in the second half of the year. Someone in the GE legal department must believe that optimistic forecasts only serve to give shareholders hope. The head of Bank of America (BAC), Ken Lewis, had maintained for some time that his firm had a strong financial foundation. His veracity was so great that BAC shares dropped over 60% in a month. The marke t came to believe that the bank’s finances were so bad that it would probably be nationalized. Lewis decided to take his case to the public by appearing on TV. This only made many shareholders believe that the man was desperate to keep his job. Bank of America’s shares only began a rally once it was clear that the federal government planned to put in a number of measures to keep this sector from failing. In almost all cases, chief executives cannot live with the fear that they are incapable of making their companies better. Boards select optimists to run their companies, much to the detriment of the companies. A man with an upbeat view of the world is bound to come to a tragic end. The pessimist is the better manager. At least he knows the he courts disaster with every decision and he rarely does anything to raise expectations. Business school professor and management consultants would make the case that having dour chief executives would kill risk-taking and innovation. But, the pessimist is not at all against risk. He is simply depressed about what he sees as the likely outcome. His capacity for risk is based on an ability to accept poor outcomes and talk about them out loud rather than hiding them from view. As Oscar Wilde said, “The pessimist is one who, when he has the choice of two evils, chooses both.” Douglas A. McIntyre Tagged: BAC, GE      Source: 247 Wall Street | 8 Feb 2009 | 4:15 am OPEC’s Final Humilation
The price of crude oil has refused to rise even though OPEC has lowered production and threatened to further reduce exports. The September decrease of two million barrels a day was followed by a drop in prices. The cartel had no better luck at its December meeting when it cut roughly another two million barrels a day and insisted that all of the nations in the group adhere to the new export policies. The crude futures market s were not entirely convinced that some of OPEC’s more impoverished members might be sneaking supply out the back door to bring in cash. Iran’s oil minister recently said that there would be another round of cuts at the OPEC meeting in March. Mr. Hussain al-Shahristani needs to get the price of crude to $70. If he cannot, Iran and other members like Venezuela will need to slash national budgets and may begin to operate at large deficits. In the current credit environment banks and sovereign nations are not going to give them loans. OPEC will face another humiliation in March. Oil trades at $40 and the rapidly deepening recession is cutting demand in the developed world and, unexpectedly, in India and China as well. The fact that non-member producers have not cut exports is an ongoing problem for OPEC. The Council on Foreign Relations believes that production in nations, including Canada and Mexico, may be up slightly this year, or, at least stay flat. The Council writes “In total, non-OPEC production is expected to increase by 1.5 million bpd in 2009, up from the 900,000 bpd growth expected in 2008, according to the the U.S. Energy Department’s Energy Information Agency.” For a numbers of years, oil consuming nations have looked back on the Arab Oil Embargo of 1973 and worried that a similar catastrophe could happen again. Demand is contracting so quickly that this history is not likely to repeat itself this decade. Who ever expected that the Canadians would become the greatest threat to Hugo Chavez? Douglas A. McIntyre       Source: 247 Wall Street | 8 Feb 2009 | 3:22 am O2 arena put up for sale for £35mLondon's O2 entertainment arena has been formally put up for sale by its landlords writes Mark Kleinman.Source: Telegraph Finance | 8 Feb 2009 | 1:08 am Is the UK consumer really flat on his back?Wandering round Poundland, as one does, is a bit different from the rarefied atmosphere of Davos but is an experience to be recommended.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am We won’t abandon savers, says Mervyn KingMERVYN KING, the Bank of England governor, will insist this week that the monetary policy committee’s aggressive cuts in interest rates do not mean savers in Britain have been abandoned.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am Revenge on the DragonsWHAT could be better than appearing on Dragons’ Den, being lauded by the judges and showered with cash? Well, how about appearing on the BBC show, being pilloried and humiliated, then seeing your business succeed anyway – thus thumbing your nose at the television’s experts?Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am Porn baron’s magazines on sale for a bare £10mTHE late property and pornography tycoon Paul Raymond’s publishing empire, famous for adult magazines such as Men Only and Mayfair, is to be put up for sale for an estimated £10m.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am US Treasury to pump billions more into banksTIMOTHY GEITHNER, the US Treasury secretary, will tomorrow set out the American government’s plan to inject billions of dollars into the country’s troubled banks and ringfence their toxic assets.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am £20m boss of Qinetiq set to retireSIR JOHN CHISHOLM, the executive who controversially made more than £20m from the privatisation of the government defence agency Qinetiq, is to step down.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am Slump stunting Diageo’s growthDRINKS giant Diageo, maker of Guinness and Smirnoff vodka, is expected to lower its growth forecasts when it delivers half-year results this week.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am Hammerson in £600m rights issueBRITAIN’s fourth-biggest property company will tomorrow launch a £600m deeply discounted rights issue to repair its battered balance sheet amid the worst conditions in the sector since the 1990s.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am Kaupthing aiming to reshape MosaicFAILED Icelandic bank Kaupthing is planning a financial restructuring of the fashion stable Mosaic after the bank unveiled plans to take full ownership of the business.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am RBS ‘toxic’ loans chief paid £40mA ROYAL BANK OF SCOTLAND executive who led its investments into “toxic” sub-prime loans was paid close to £40m in just three years, The Sunday Times can reveal.Source: Latest Business News from Times Online | 8 Feb 2009 | 12:00 am Treasury to approve insurers for TARP funds: sourcesWASHINGTON (Reuters) - Insurance companies that applied for capital injections from the government's $700 billion financial bailout fund could get approval as soon as Monday, two sources familiar with the matter said on Saturday.Source: Reuters: Business News | 7 Feb 2009 | 11:46 pm Treasury to approve insurers for TARP funds: sources (Reuters)Reuters - Insurance companies that applied for capital injections from the government's $700 billion financial bailout fund could get approval as soon as Monday, two sources familiar with the matter said on Saturday.Source: Yahoo! News: Business | 7 Feb 2009 | 11:34 pm Dubai official says no plans to sell Barneys (AP)AP - The chairman of the Dubai conglomerate that owns Barneys New York said Saturday the company is not looking for a buyer for the luxury retailer, dispelling recent media reports.Source: Yahoo! News: Business | 7 Feb 2009 | 11:28 pm U.S. linking bank aid to loan changes: sources (Reuters)
Source: Yahoo! News: Business | 7 Feb 2009 | 11:01 pm U.S. linking bank aid to loan changes: sourcesWILLIAMSBURG, Virginia (Reuters) - U.S. Treasury chief Timothy Geithner said on Saturday that banks getting public aid under a new rescue plan must help struggling homeowners by reworking their mortgages, according to Democratic sources.Source: Reuters: Business News | 7 Feb 2009 | 11:01 pm Qinetiq chairman Sir John Chisholm set to retireSir John Chisholm the Qinetiq chairman who controversially made more than £20m from the privatisation of the government defence company is preparing to step down.Source: Telegraph Finance | 7 Feb 2009 | 10:46 pm Obama defends economic stimulusThe US president defends his economic stimulus plan as "absolutely necessary", and urges Congress to approve it quickly.Source: BBC News | Business | World Edition | 7 Feb 2009 | 10:23 pm NewsWatch: Senate debates details of $780 billion stimulus compromiseSenators' compromise with moderate Republicans paves the way for a vote in the chamber and hands Obama a legislative victory on his highest economic priority.Source: MarketWatch.com - Top Stories | 7 Feb 2009 | 10:00 pm Fed's Yellen: Similarities to Great DepressionRead full story for latest details.Source: Business and financial news - CNNMoney.com | 7 Feb 2009 | 9:35 pm Wall Street shrugs off January job losses of 598K (AP)
Source: Yahoo! News: Stock Markets News | 7 Feb 2009 | 8:42 pm SEC chief weighs ex-prosecutor to head enforcement (Reuters)
Source: Yahoo! News: Stock Markets News | 7 Feb 2009 | 8:25 pm Royal Bank of Scotland to pay staff £1 billion in bonusesRoyal Bank of Scotland proposing to pay £1 billion in bonuses to staff after being rescued by taxpayers.Source: Telegraph Finance | 7 Feb 2009 | 8:22 pm Germany rejects economy minister's resignationGermany Economy Minister Michael Glos offered to step down Saturday, an offer that was promptly rejected by party leaders.Source: MarketWatch.com - Top Stories | 7 Feb 2009 | 8:21 pm Taxpayer to insure Treasury's £400bn toxic loan schemeTreasury scheme to ringfence toxic loans made by British banks is likely to involve more than £400bn of assets being insured by the taxpayer.Source: Telegraph Finance | 7 Feb 2009 | 8:17 pm Currys owner prepares for rights issueDSG International the owner of the Currys and PC World electrical goods retailers has begun preparations for a rights issue to raise hundreds of millions of pounds.Source: Telegraph Finance | 7 Feb 2009 | 8:15 pm Pound's weakness 'a selling point for tourism industry'Tourism industry executives will this week highlight the weakness of the pound as a selling point for the sector with the launch of a major campaign to help weather the impact of the deepening recession.Source: Telegraph Finance | 7 Feb 2009 | 8:07 pm Royal Bank of Scotland to sell aircraft leasing businessRoyal Bank of Scotland is poised to hoist the "for sale" sign over its aircraft leasing business as part of a strategic review that will see a radical overhaul of its operations.Source: Telegraph Finance | 7 Feb 2009 | 7:59 pm Russian oligarch Blavatnik buys secret stake in payTV firm SetantaLen Blavatnik whose £2.5bn loan from Royal Bank of Scotland sparked a major political row is a secret investor in the paytelevision company.Source: Telegraph Finance | 7 Feb 2009 | 7:37 pm Lenders scrutinise Lupus balance sheetGreg Hutchings the former Tomkins chief executive has seen his Lupus Capital investment vehicle hit by the falling value of sterling and the slump in the construction industry on both sides of the Atlantic.Source: Telegraph Finance | 7 Feb 2009 | 7:35 pm Iraq oil minister predicts OPEC output cutsThe Organization of Petroleum Exporting Countries, in an effort to prop up flagging oil prices, is likely to agree to further production cuts when its members gather next month, Iraq's oil minister says.Source: MarketWatch.com - Top Stories | 7 Feb 2009 | 7:18 pm Crucial week ahead for ObamaNow it's really crunch time.Source: Business and financial news - CNNMoney.com | 7 Feb 2009 | 7:02 pm John Dvorak's Second Opinion: 25 random facts about computers and the tech sectorThere's a wild fad going on in the Facebook realm where you list 25 random facts about yourself or about something you are involved with. I'm on it with this list of random facts about computers and the tech sector.Source: MarketWatch.com - Top Stories | 7 Feb 2009 | 6:26 pm GM may cut thousands of salaried workers: reportCHICAGO (Reuters) - General Motors Corp. is developing a plan to fire up to 5,000 salaried employees as it tries to cut costs by a March 31 deadline to keep $13.4 billion in U.S. government aid, according to a Bloomberg report.Source: Reuters: Business News | 7 Feb 2009 | 6:25 pm GM may cut thousands of salaried workers: report (Reuters)
Source: Yahoo! News: Business | 7 Feb 2009 | 6:25 pm Biden proposes to 'press reset button' with MoscowJoe Biden, the US vice president, set a new tone in Washington's relations with Russia and Iran, declaring that the new US administration wants to 'press the reset button' in its dealings with Moscow and would be 'willing to talk to' the regime in TehranSource: Financial Times - US homepage | 7 Feb 2009 | 6:05 pm Deal reached on $827bn US stimulus packageBarack Obama called on senators to complete passage of the $827bn stimulus package that was struck behind close doors late on Friday. US Senate Democrats agreed to cut their hopes for a larger economic stimulus package and support a compromise that would give Mr Obama an important but narrow victorySource: Financial Times - US homepage | 7 Feb 2009 | 4:53 pm Keep fingers out of the tillIs it ethical for a courier driver to use his Fly Buys card when filling up his company van? Would a shop assistant be dishonest if she swiped her own loyalty card each time a customer had forgotten theirs? No one else would have...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm Striking out alone costlyThe economic downturn is not only straining people's relationships - it's also never been more costly to break up. Lawyer Deborah Hollings says people's financial circumstances are deteriorating so fast that separating partners...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm Pays to be positiveInternational speaker W. Mitchell says "It's not what happens to you. It's what you do about it." Mitchell, who visited New Zealand business groups last week, urged them to view this recession as "a minor bump along the long, glorious...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm It's all in your handsIt appears thousands of "sophisticated" individuals and institutions lost money over several decades in the US$50 billion ($98 billion) Ponzi scheme allegedly perpetrated by Bernard Madoff, a New York City stockbroker and former head...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm Bernard Hickey : Why OCR cuts haven't helped us much yetThe Reserve Bank and the Government have trumpeted the sharp drop in the official cash rate in the last six months as putting more cash in the pockets of consumers and businesses, but that hasn't happened much in the short term at...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm Martin Hawes : Read up and retire comfortablyAlmost all investment literature is for those wanting to build wealth - very little is written for people who want to use their investment capital to give them income on which to live. This is why I wrote Investing for Twenty Good...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm Top tips: Advises investors and borrowers to think carefully about to how to benefitWith the official cash rate historically low at 3.5 per cent, Deborah Carlyon, financial adviser at Stuart + Carlyon, advises investors and borrowers to think carefully about to how to benefit. I'm retired and my bank interest...Source: New Zealand Herald - Business | 7 Feb 2009 | 4:00 pm Week Ahead: Coke vs. Pepsi Investor Taste Test (KO, PEP)This coming week will mark the earnings reports for two key household consumer stocks, both of which were supposed to be defensive stocks by nature. The Coca-Cola Company (NYSE: KO) reports earnings on Thursday, February 12, 2009 and Pepsico, Inc. (NYSE: PEP) is set to report earnings on Friday, February 13, 2009.
The estimates on Coca-Cola are likely to change before the day ofearnings since there are 3 trading days before the report. Theestimates are as follows: Coca-Cola shares closed up 2% at $43.55 Friday, and its 52-Week tradingrange is $40.29 to $61.90. With a $100.7 billion market cap, thecompany trades at an expected 3.1-times 2008 revenues and right at3-times expected 2009 revenues. Coca-Cola also trades at 13.9-times2008 expected earnings and 13.6-times 2009 expected earnings. The estimates on Pepsi are also likely to change before the day ofearnings since there are 4 trading days before the report, and becauseanalysts who cover Coca-Cola may make changes on Pepsi as a result ofthe competitor’s earnings coming first. The estimates are as follows: Pepsi shares closed up 2.2% at $53.53 on Friday, and its 52-Weektrading range is $43.78 to $75.25. With a $83.1 billion market cap,the company trades at an expected 1.9-times 2008 revenues and right at1.86-times expected 2009 revenues. Pepsi also trades at 14.6-times2008 expected earnings and 13.9-times 2009 expected earnings. On the surface these two companies are thought of as Frick and Frack.But Pepsico has the snack-food component side of its operations thatCoca-Cola does not have. That means that it has one more element ofcost issues as well as the troubled consumer spending issue to dealwith. So as it goes in today’s world, Coca-Cola is a slightly moredefensive or slightly easier to predict company on the surface. Bothcompanies have huge international operations, and therefore have alarge currency component that a stronger dollar may actually hurt inthe conversions as most international operations have cited. Either way, these two stocks move very close to each other. Even in this climate, not all defensive stocks hold their value in the manner many would have hoped. Below is the chart, furnished from BigCharts.com: Again, these estimates are likely to change before the actual reports,and Pepsi estimates may change even more since the analysts may reactoff of the Coke call first. We will furnish individual previews duringthe week that show more color on the charts, internals, stock optiontrader expectations, and key analyst data. Jon C. Ogg       Source: 247 Wall Street | 7 Feb 2009 | 3:39 pm IMF: Depression May Have Already Started
That notion would make some sense. In the US and UK, unemployment is almost certainly headed toward 10%. If people out of work and no longer looking for jobs are included, the figure could move much closer to 15%. Consumer and business spending have virtually shut down because of lack of access to credit. In the US, several major industries may be in the late stages of complete failure. This would almost certainly include the retail and automotive sectors, and could, if the government does not take appropriate action, move to the largest financial firms.
The IMF contends that several of the largest economies are already in depressions. According to Bloomberg, "Advanced economies are already in a depression and the financial crisis may deepen unless the banking system is fixed, International Monetary Fund Managing Director Dominique Strauss-Kahn said." If that analysis is correct, the bottom could last several years. The layoff cycles has hit a the vicious point where the growing number of people out of work further undermine consumer spending which leads to more firings at consumer goods companies and retailers. Each job lost is a series of lost sales for a number of American companies. Those firms are faced with more rapidly falling sales as the year passes The ride down may just be beginning. Douglas A. McIntyre       Source: 247 Wall Street | 7 Feb 2009 | 12:34 pm
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The advent of the printed book is usually traced back to The Gutenberg Bible in 1455. People have been used to reading the written word on paper ever since. 
The press has not learned, despite repeated experiences, that televangelists, medical researchers, elected politicians and chief executive officers are often incapable of telling the truth. That is not to say that they are liars. It only means that, at their core, all of the people in these professions are driven to make their world look as bright as possible. Every Congressman promises to bring prosperity to his district even if the next set of appropriations will send his constituents nothing. CEOs are rarely willing to say that their companies are in trouble.
The price of crude oil has refused to rise even though OPEC has lowered production and threatened to further reduce exports. The September decrease of two million barrels a day was followed by a drop in prices. The cartel had no better luck at its December meeting when it cut roughly another two million barrels a day and insisted that all of the nations in the group adhere to the new export policies. The crude futures market s were not entirely convinced that some of OPEC’s more impoverished members might be sneaking supply out the back door to bring in cash.
