Stock futures dip after run-up and no Obama spur seen (Reuters)

Reuters - Stock index futures dipped on Wednesday, as investors pondered whether the market would sustain a run-up seen in the prior session amid persistent concerns about recession and the financial sector.

Source: Yahoo! News: Stock Markets News | 25 Feb 2009 | 1:04 pm

French sovereign wealth fund takes stake in Valeo

France’s sovereign wealth fund announces it has taken a stake in French auto parts group Valeo, a firm that has been targeted by a New York investment group pushing for a merger.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 1:03 pm

Currencies: Dollar mixed as equities rise

LONDON (MarketWatch) - The U.S. dollar was mixed Wednesday, with recent upside momentum capped as rising equity markets cut safe-haven flows to the greenback, strategists said.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 1:03 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 1:01 pm

US bill set to ease Cuba travel

The US House of Representatives is due to vote on a $410bn spending bill that would ease restrictions on travel to Cuba.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 12:53 pm

Stormy weather for ski makers

VAL D'ISERE, France (Reuters) - Snow conditions are ideal from the Alps to the Rockies, the off-piste is heavenly and the groomed slopes rock-free. Yet most of Europe's leading ski companies will lose money again this season.
Source: Reuters: Business News | 25 Feb 2009 | 12:52 pm

Turkish Airlines jet crashes at Amsterdam airport

A Turkish Airlines jet carrying 135 passengers crashed while trying to land at Amsterdam’s Schiphol International airport, but all on board survived, news agencies reported Wednesday.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 12:52 pm

Icahn turns his attention to Lions Gate

The activist investor proved he had a soft spot for Hollywood when he used his stake in Time Warner to try and force through changes at the owner of Warner Brothers. Now he has turned his attention to Lions Gate Entertainment, the company behind this week's big hit Madea Goes to Jail
Source: Financial Times - US homepage | 25 Feb 2009 | 12:44 pm

Top Pre-Market Analyst Downgrades (ASTE, ECLP, GD, MMC, RSH, TKC)

Source: 247 Wall Street | 25 Feb 2009 | 12:44 pm

Murdoch's daughter snubs dad

In the weeks that Rupert Murdoch was locked in unsuccessful negotiations to keep his longtime No. 2 at News Corp., the media baron also had to accept his daughter Elisabeth's decision to turn down a spot on the company's board, sources told Fortune.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 12:44 pm

That heavy feeling? It's trillions in debt

The prices of real estate, stocks and many commodities continue to plummet this year.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 12:42 pm

Stock futures point to mixed open for Wall St.

(Reuters) - Stock index futures pointed to a mixed open for U.S. shares on Wednesday, following a surge in the previous session.
Source: Reuters: Business News | 25 Feb 2009 | 12:41 pm

Stock futures point to mixed open for Wall St. (Reuters)

Reuters - Stock index futures pointed to a mixed open for U.S. shares on Wednesday, following a surge in the previous session.

Source: Yahoo! News: Business | 25 Feb 2009 | 12:41 pm

Report urges EU finance watchdog

The City of London and other financial institutions should be supervised by a new European watchdog, a report says.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 12:40 pm

Oil prices rise before US inventory data

Oil prices rose on Wednesday, overturning losses in Asian deals, as the market awaited the latest weekly snapshot of crude inventories in the United States, the world's biggest energy...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:40 pm

TABLE-REM OFFSHORE 3-month results

Feb 25 (Reuters) - 3 months to 31 Dec 2008 REM Offshore ASA (Millions of Norwegian crowns unless otherwise stated)
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:39 pm

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

Among the companies whose shares are expected to see active trade in Wednesday’s session are Allstate, AT&T, Cadbury, DreamWorks, Nabors, Ormat Technologies, Papa John’s, J.M. Smucker, and Wynn Resorts.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 12:39 pm

Top Pre-Market Analyst Upgrades (AGN, T, CCL, CB, EGLE, FMX, HR, MYL, TEVA)

Source: 247 Wall Street | 25 Feb 2009 | 12:38 pm

Winthrop Realty Trust Announces Impairments and Loan Reserves Taken by Lex-Win Concord LLC for Quarter and Full Year Ended December 31, 2008

BOSTON, Feb. 25 /PRNewswire-FirstCall/ -- Winthrop Realty Trust (NYSE: FUR) announced today that Lex-Win Concord LLC ("Concord"), its debt platform venture with...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:35 pm

Lexington Realty Trust Reports Fourth Quarter 2008 Results

NEW YORK, Feb. 25 /PRNewswire-FirstCall/ -- Lexington Realty Trust ("Lexington") (NYSE: LXP), a real estate investment trust focused on...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:30 pm

China Fire Expands Executive Management Team

BEIJING, Feb. 25 /PRNewswire-Asia-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG) ("China Fire" or "the Company"), a leading total ...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:30 pm

UPDATE 1-Kendle posts lower Q4 profit

Feb 25 (Reuters) - Kendle International , a provider of clinical-development services to biopharmaceutical firms, posted a 22 percent drop in quarterly earnings, hurt by a programming issue in a study...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:28 pm

Indications: U.S. stock futures drift lower as stress tests unveiled

U.S. stock futures drift lower after the roller-coaster ride of the last two sessions, with the financial sector back in the spotlight as the stress tests are due to be unveiled.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 12:26 pm

J.M. Smucker 3Q profit rises 84 percent

J.M. Smucker says fiscal third-quarter earnings rose 84 percent as acquisitions helped drive a sharp increase in sales for the nation's top maker of jams and jellies. Profit rose to...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:25 pm

Tracking the bear: How bad could it get?

Don't let Tuesday's rally fool you. While the Dow roared back more than 236 points and the S&P 500 gained 4%, Monday's 12-year lows showed that this bear market may still grow bigger and meaner.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 12:22 pm

Europe 'must fight protectionism in auto sector'

Europe must make a concerted effort to avoidprotectionism in the auto sector, which would only hurt the ailing industry's exports, the European Commission warned in a statement to be...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:22 pm

Microsoft says no new cost cuts, shares hit 11-year low

BOSTON (Reuters) - Microsoft Corp outlined plans to offset revenue declines as the PC market shifts to low-cost netbooks, but it failed to announce more cost cuts, sending its shares to an...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:21 pm

FBR Capital Markets Reports Fourth Quarter and Full Year 2008 Financial Results

Subsequent to Year-End, Eliminates Mortgage Investments and Retires All Debt ARLINGTON, Va., Feb. 25 /PRNewswire-FirstCall/ -- FBR Capital Markets Corporation...
Source: RSS feed - channel BNewsBusiness | 25 Feb 2009 | 12:15 pm

No momentum for Wall Street

Stocks were set to open lower Wednesday after President Obama's speech to Congress, as the previous session's rally appeared to have no momentum.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 12:13 pm

FSA bosses face grilling over banking crisis

Senior executives at the Financial Services Authority (FSA) are heading for a grilling today when they appear before MPs to answer questions about their role in the banking crisis.
Source: Latest Business News from Times Online | 25 Feb 2009 | 12:09 pm

Quiz: How tax smart are you?

This year you can't afford not to take every deduction available to you -- better bridge the gaps in your tax knowledge.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 12:08 pm

Stocks signal mixed open as Street seeks direction (AP)

AP - Wall Street headed for a mixed open Wednesday as investors looked for clues about the economy after two back-and-forth days in the market.

Source: Yahoo! News: Stock Markets News | 25 Feb 2009 | 12:04 pm

Top Ford executives takes 30pc pay cut

Ford's top executives including chairman Bill Ford will take 30pc pay cuts as the carmaker tries to find a way out of the worst auto sales slump in 26 years.
Source: Telegraph Finance | 25 Feb 2009 | 12:03 pm

European Stocks to Watch: The most expensive stocks in Europe may be a bargain

Maybe now is not exactly the time to be splashing out on costly European stocks, but it just may pay investors to look beyond the price tag.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 12:02 pm

Japan: Record trade gap

Grappling with its worst economic crisis since World War II, Japan posted a record $10.1 billion trade deficit in January, the Ministry of Finance reported Wednesday.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 12:01 pm

Oil pushes above $40 as equities support

LONDON (Reuters) - Oil rose above $40 a barrel on Wednesday, extending a 4 percent rally in the previous session, lifted by firmer equities before the release of U.S. inventory data expected to show rising supply.
Source: Reuters: Business News | 25 Feb 2009 | 12:01 pm

Mortgage applications fell 15.1% last week: MBA

Higher mortgage rates last week coincide with the volume of applications filed for home loans falling a seasonally adjusted 15.1% compared with the week before, Mortgage Bankers Association data show.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 12:00 pm

Ambac reports $2.3 billion quarterly loss

Ambac Financial reports a $2.34 billion fourth-quarter net loss on Wednesday as the bond insurer was hit hard by the deepening recession and financial crisis.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 11:58 am

San Francisco: A no-newspaper town?

The San Francisco Chronicle is in danger of being sold or closed if it doesn't stop bleeding millions, officials said Tuesday, putting the city at risk of becoming the first U.S. metropolis without a major daily paper.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 11:57 am

Europe Markets: Gains for bank shares pace advance for European stocks

European shares advance Wednesday, as remarks from Federal Reserve Chairman Ben Bernanke sooth bank-sector-nationalization worries and investors react positively to earnings from Deutsche Boerse and Henkel.

Source: MarketWatch.com - Top Stories | 25 Feb 2009 | 11:56 am

AIG may abandon asset sales plan: report

(Reuters) - American International Group Inc may scrap a plan to repay a $60 billion U.S. government loan by selling businesses, after failing to find enough promising bidders, Bloomberg said, citing people with knowledge of the matter.
Source: Reuters: Business News | 25 Feb 2009 | 11:54 am

Table: The best cash Isa transfer deals

Banks are allowing existing Isas to be transferred to new accounts.
Source: Telegraph Finance | 25 Feb 2009 | 11:51 am

Barratt loss on house market woes

UK housebuilder Barratt Developments reports a loss of almost £600m after having to write down the value of land.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 11:50 am

Banks help push world markets higher (AP)

AP - World stock markets rose sharply Wednesday after Federal Reserve chairman Ben Bernanke said the U.S. government had no plan to fully nationalize any of the country's distressed banks.

Source: Yahoo! News: Stock Markets News | 25 Feb 2009 | 11:49 am

The best cash Isa transfer deals

Banks are allowing existing Isas to be transferred to new accounts.
Source: Telegraph Finance | 25 Feb 2009 | 11:42 am

What The New York Times (NYT) Company Could Learn From Hearst

Source: 247 Wall Street | 25 Feb 2009 | 11:41 am

Royal Mail sale opposed by half of small businesses

Small businesses are today adding to the pressure on the Government over the sale of a stake in Royal Mail, with nearly half saying that they want the postal group to remain in public ownership.
Source: Latest Business News from Times Online | 25 Feb 2009 | 11:34 am

Segro pays £8.6m to renegotiate £1.7bn debt

The share price of Segro shot up by 18 per cent today after the commercial property company renegotiated its debt covenants with its lenders, which could help to avert a rights issue.
Source: Latest Business News from Times Online | 25 Feb 2009 | 11:34 am

Google (GOOG) Gets Another Chance To Take Down Microsoft (MSFT)

Source: 247 Wall Street | 25 Feb 2009 | 11:24 am

UBS in $31bn bond order mistake

A Japanese unit of banking group UBS says a computer error caused it to mistakenly place a $31bn bond order.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 11:22 am

Should you bailout a relative?

Your sister and her husband bought a house they can't afford. Should you give them a loan? Money's ethicists weigh in.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 11:15 am

Gold investors make 120pc return in four months

Private investors who have bought exchange traded funds that track the performance of gold miners have more than doubled their money since October last year.
Source: Telegraph Finance | 25 Feb 2009 | 11:14 am

Angry shareholders demand change

At long last, angry shareholders may finally have their day.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 11:13 am

Passenger fall hits BAA profits

Airport operator BAA says its 2008 profits fell 18.4% as the economic downturn dented passenger numbers.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 11:13 am

Why the lost decade wasn't such a loss

You've no doubt heard the term "lost decade" to describe what's happened to stocks since 1999. And that may have you wondering whether equities are worth the risk and whether buy-and-hold investing, dollar-cost averaging and dutifully contributing to your 401(k)'s mutual funds are a sucker's bet.
Source: Business and financial news - CNNMoney.com | 25 Feb 2009 | 11:12 am

Server Sales Follow PC Sales Down The Toilet (HPQ) (DELL) (MSFT) (INTC)

Source: 247 Wall Street | 25 Feb 2009 | 11:12 am

AIG may abandon asset sales plan: report (Reuters)

Reuters - American International Group Inc may scrap a plan to repay a $60 billion U.S. government loan by selling businesses, after failing to find enough promising bidders, Bloomberg said, citing people with knowledge of the matter.
Source: Yahoo! News: Business | 25 Feb 2009 | 11:09 am

Japan exports drop 46% in January

Japan's trade deficit hits a record as exports fall 45.7% in January compared with a year ago to hit a 10-year low.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 11:07 am

UK household spending falls at fastest rate since 1991

Household spending declined at its fastest rate since 1991 during the last three months of 2008 as recession fears gripped the UK.
Source: Telegraph Finance | 25 Feb 2009 | 10:57 am

Obama Address: A Road Map Without GPS

Source: 247 Wall Street | 25 Feb 2009 | 10:52 am

UK economy contraction confirmed

The UK economy shrank by 1.5% in the last three months of 2008, official figures confirm, unrevised from the initial estimate.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 10:50 am

FACT CHECK: Obama's words on home aid ring hollow (AP)

AP - President Barack Obama knows Americans are unhappy that their taxes will be used to rescue people who bought mansions beyond their means.

Source: Yahoo! News: Business | 25 Feb 2009 | 10:46 am

When Mortgage Assistance Does Not Work

Source: 247 Wall Street | 25 Feb 2009 | 10:31 am

Bernanke: The Wizard of Oz

Source: 247 Wall Street | 25 Feb 2009 | 10:26 am

Financials underpin FTSE rally

London equities rose on Wednesday, lifted by improved sentiment overnight in the US as President Barack Obama pledged to fix the financial system. The FTSE 100 was 58 points higher at 3,874.27, a recovery...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 10:23 am

Bodycote to axe 1300 jobs and close 31 sites

Bodycote the metals engineer is to axe about 1500 jobs and close or combine 31 of its sites in a bid to save £18m a year.
Source: Telegraph Finance | 25 Feb 2009 | 10:08 am

Cadbury trims expectations for 2009

Cadbury reported sales growth of 6 per cent for 2008 but the confectionery group trimmed expectations for growth in 2009, saying it was giving a "confident but realistic" outlook for its performance.Todd...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 10:04 am

Recession deepens as UK economy shrinks 1.5%

Britain is in the grip of a deeper recession than has hitherto been thought, official figures show this morning.
Source: Latest Business News from Times Online | 25 Feb 2009 | 9:55 am

Tomkins to shut plants and cut jobs as it halves dividend

British engineer Tomkins halved its fullyear dividend and unveiled plans for more plant closures and jobs cuts as conditions worsen.
Source: Telegraph Finance | 25 Feb 2009 | 9:46 am

Japan carmakers' output plummets

Leading Japanese carmakers report a significant drop in their global output in January amid the downturn.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 9:24 am

Citi may add Japan investment bank to sale: reports

TOKYO (Reuters) - Citigroup may sell both its Japanese investment bank and brokerage, according to media reports, as the faltering U.S. lender looks to raise more cash from a sale of global assets.
Source: Reuters: Business News | 25 Feb 2009 | 9:11 am

Barratt Development reports £592m loss as housing market remains 'intensely difficult'

Housebuilder warns the UK property market is showing little sign of recovery after posting a heavy halfyear loss.
Source: Telegraph Finance | 25 Feb 2009 | 9:09 am

Logica profits halve after restructuring costs

Profits at Logica the IT services group nearly halved last year due to a massive restructuring programme aimed at revitalising the once struggling company.
Source: Telegraph Finance | 25 Feb 2009 | 9:09 am

Media Digest 2/25/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

Source: 247 Wall Street | 25 Feb 2009 | 8:59 am

Tepid interest in AIG Asia unit

The stricken insurance giant may have to scrap the sale of its Asian life assurance unit after attracting only lukewarm interest from potential bidders
Source: Financial Times - US homepage | 25 Feb 2009 | 8:58 am

Tepid interest in AIG Asia unit

AIG, the stricken insurance giant, may have to scrap the sale of its Asian life assurance unit after attracting only lukewarm interest from potential bidders, according to people familiar with the matter...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:58 am

Northgate talks to banks over debt covenants

Northgate, the van hire business, today warned that its profits would fall short of expectations and that it was in talks to amend its debt covenants.
Source: Latest Business News from Times Online | 25 Feb 2009 | 8:55 am

Cadbury profits as consumers indulge

Chocolate giant Cadbury has seen consumers reach for their favourite treat amid the economic gloom lifting profits.
Source: Telegraph Finance | 25 Feb 2009 | 8:54 am

Asia Market And Europe Open 2/24/2009

Source: 247 Wall Street | 25 Feb 2009 | 8:23 am

BAA passenger numbers slip as demand falls

The number of passengers travelling through Britain’s main airports fell 2.7 per cent overall last year despite a 3.5 per cent increase in the number of long-haul trips being made, BAA, the airports operator, said today.
Source: Latest Business News from Times Online | 25 Feb 2009 | 8:20 am

Barratt losses reach £592m as land value falls

Barratt Developments, the struggling housebuilder, announced worse-than-expected losses this morning after a £494.9 million loss on its land bank.
Source: Latest Business News from Times Online | 25 Feb 2009 | 8:05 am

Citi may add Japan investment bank to sale: reports (Reuters)

Reuters - Citigroup may sell both its Japanese investment bank and brokerage, according to media reports, as the faltering U.S. lender looks to raise more cash from a sale of global assets.
Source: Yahoo! News: Business | 25 Feb 2009 | 8:04 am

Japan's exports down 45% year on year

The deepening recession and policy paralysis ahead of an election due later this year are feeding a slide in the yen, which hit a three-month low against the dollar on Tuesday
Source: Financial Times - US homepage | 25 Feb 2009 | 8:01 am

News Corp. exit door may widen with Murdoch plan

The media mogul is said to want more direct involvement in operations and to shuffle management with the departure of Peter Chernin. Lack of a clear successor is a concern on Wall Street. ...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

Insurance coverage for autism treatments sought

Patient advocates want the state to more quickly resolve parents' complaints over payments for behavioral therapy. ...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

Pacific Gas & Electric will add 500 megawatts of solar power in California

The San Francisco utility plans to spend $1.5 billion of ratepayers' money on the photovoltaic project, which is expected to generate enough electricity to supply 150,000 homes when completed. ...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

DreamWorks Animation profit drops 45% in fourth quarter

Revenue from the DVD release of 'Kung Fu Panda' fails to match that of 'Shrek the Third' a year earlier. DreamWorks...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

Obama and Bernanke offer hope for the economy

The nation's chief economic policymakers seeks to dispel anxiety about the future but don't minimize the extent of current problems or the size of the challenge ahead. ...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

Ticketmaster-Live Nation merger panned at Senate hearing

Business rivals and lawmakers blast the proposed merger. CEOs say they're just trying to survive the recession. ...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

SEC probes O.C. real estate lender Point Center Financial

An investor lawsuit accuses the firm, owned by the husband of Assemblywoman Diane Harkey, of fraud. The Securities...
Source: RSS feed - channel BNPaperBusiness | 25 Feb 2009 | 8:00 am

Unpaid furloughs a trend for U.S. white-collar jobs

CINCINNATI (Reuters) - U.S. newspapers have done it. California police have too. Governments in California, New Jersey and Ohio say it will save the budget. Forcing workers to take unpaid time off is a new version of the American layoff.
Source: Reuters: Business News | 25 Feb 2009 | 7:53 am

Live Nation and Ticketmaster face skeptical lawmakers

WASHINGTON (Reuters) - The chief executives of Live Nation and Ticketmaster got a skeptical reception on Capitol Hill on Tuesday, with a leading lawmaker pressing Ticketmaster to sell a reselling subsidiary.
Source: Reuters: Business News | 25 Feb 2009 | 7:41 am

Aust dollar closes at two-week high

SYDNEY - The Australian dollar closed at a two-week high after the US central bank chief said the US economy was likely to emerge from recession in late 2009, with his positive sentiment buoying appetite for risk-sensitive...
Source: New Zealand Herald - Business | 25 Feb 2009 | 7:33 am

Aussie stocks hit five-year low

SYDNEY - The Australian share market has closed at a fresh five-year low after trading higher for most of the day following a rally on Wall Street overnight. Consumer staples and financials all swung to losses in the afternoon,...
Source: New Zealand Herald - Business | 25 Feb 2009 | 7:07 am

Obama pledges to fix financial system

US President Barack Obama promised to act with the "full force of the federal government" to shore up the financial system and acknowledged that more taxpayer money would be required to bail out banks
Source: Financial Times - US homepage | 25 Feb 2009 | 6:57 am

Sharemarket rebounds off 5-yr lows

The New Zealand sharemarket rebounded off five-year lows today, as stocks in the United States rose more than 3 per cent to snap back from 12-year lows. The benchmark NZSX-50 index closed up 12.292 points, or 0.494...
Source: New Zealand Herald - Business | 25 Feb 2009 | 6:27 am

NZ dollar trades in narrow range

The New Zealand dollar traded in fairly narrow ranges today as the US dollar rallied against the yen. By 5pm the NZ dollar was buying US51.22c, up from US51.01c at the same time yesterday. It rose to around US51.60c as the US and...
Source: New Zealand Herald - Business | 25 Feb 2009 | 5:54 am

Determined Obama vows to renew US

Barack Obama makes his first speech to Congress, vowing that the US will emerge stronger from economic crisis.
Source: BBC News | Business | World Edition | 25 Feb 2009 | 5:41 am

Mortgage Vultures

Back in 2006, hedge fund manager Steve Persky says, the opportunities for distressed-asset investing were so limited that he shut down his $300 million fund in the sector and returned the cash to investors.

"Everyone was flush. Things were too good," recalls Persky, the co-founder of Dalton Investments, a 10-year-old hedge fund based in Los Angeles.

That benign environment has given way to a new reality in which foreclosure and defaults are rampant. There are now ample opportunities for distressed-asset investors, including not only Dalton but also Marathon Asset Management, Private National Mortgage Acceptance Corp., and others.

When Dalton re-entered the market in July, Persky targeted mortgage-backed securities composed of loans that didn't qualify for a government agency guarantee. That's a $1 trillion market in which nearly all securities are in distress and few investors are willing to venture.

"It's not that we're optimistic. We're pessimistic. Very pessimistic. We think things are going to get a lot worse," says Persky, 50. "But if you have cash, this is a great time to invest in distressed assets."

President Obama may have made it an even better time. His administration's aid plan, outlined last week, could boost returns for investors such as Persky by limiting foreclosures and extending the life of loans in default.

Even before Obama acted, Dalton raised $400 million for the mortgage strategy, which has generated a return of almost 22 percent between July 1, 2008, and the end of January 2009. The Standard & Poor's 500 fell 35 percent during the same period of time.

It's a complicated and costly strategy to pursue, which helps explain why there are so few players in the market. As he prepared to re-enter the distressed-mortgage market, Persky hired a team of three mortgage-backed security experts with experience at Countrywide Financial and Ocwen Financial.

To sift through the mountains of toxic mortgage-backed assets being offered for sale, they use software to analyze the complex, idiosyncratic securities—each of which may contain thousands of loans, and no two of which are identical.

Human analysts make conservative assumptions about the performance of each security, and traders then try to buy them at a price that will allow them to make a significant return. That price can range from 40 cents on the dollar for the very highest quality assets to less than a penny on the dollar for the very worst.

Three things distinguish one from the other: the number of defaults among the loans in the security, the amount that is lost in each foreclosed loan, and the risk of prepayments on the loans that don't foreclose. Prepayments reduce cash flow for the bondholder.

Few fixed-income assets that trade for pennies on the dollar pay interest, but one of them is residential mortgage-backed securities. Mortgage-servicing companies continue to make payments on loans even when borrowers themselves stop.

Payments from the servicing company usually continue for a number of months until the loans in the security are foreclosed upon.

Dalton determines what it's willing to pay for the securities in much the same way others do for similar securities: by estimating the likely number of defaults, the size of the actual losses, and the risk of prepayments by borrowers whose loans are in good standing.

Prices for such securities are very low, even considering the awful state of the economy. That's because the market for mortgage-backed securities is flooded with sellers, as banks, hedge funds, and other investors in collateralized-debt obligations, or CDOs, head for the exit.

In many cases the owners of these mortgage-related investments are forced to sell them because they're required to hold assets with a high credit rating; this gives them little leverage with buyers, so prices are low. At the same time, few potential buyers are willing to take a chance on assets that are at the center of the global financial and economic crisis; this helps push prices even lower.

The strategy faces plenty of risks, though. As economic pressure increases, for example, banks may try to accelerate the foreclosure process, which would lower Dalton's return.

Phil Phan, professor of strategic management at Johns Hopkins University's Carey Business School says investors "have to keep a close eye on the recovery rate"—the rate that lenders push for faster and more foreclosures—because as the crisis deepens, lenders feel more pressure to turn around assets quickly.

This, of course, not only reduces investors' returns on these failed mortgages, it pushes more families out of their homes faster.

Persky says the carnage in the housing market and the economy is likely to get worse, and remain a problem for a number of years.

"What's going on is horrible. I wouldn't gloat about making money from this," Persky says. "But this is a historic opportunity for distressed-asset investors."Related Links
Sign of a Bottom?
The Man Who Made Too Much
The Big Fix



Source: Portfolio.com: Top 5 | 25 Feb 2009 | 5:00 am

San Francisco Chronicle may shut down

NEW YORK/SAN FRANCISCO (Reuters) - San Francisco may lose its main newspaper, the San Francisco Chronicle, as owner Hearst Corp cuts a "significant" number of jobs and decides whether to shut or sell the money-losing daily.
Source: Reuters: Business News | 25 Feb 2009 | 3:19 am

San Francisco Chronicle may shut down (Reuters)

Reuters - San Francisco may lose its main newspaper, the San Francisco Chronicle, as owner Hearst Corp cuts a "significant" number of jobs and decides whether to shut or sell the money-losing daily.

Source: Yahoo! News: Business | 25 Feb 2009 | 3:19 am

Epic supermarket stoush solved in court

Supermarket operator Foodstuffs hopes to open a Pak'n Save on Auckland's North Shore by May after the High Court today rejected an appeal by rival operator Progressive Enterprises. Foodstuffs managing director Tony Carter said...
Source: New Zealand Herald - Business | 25 Feb 2009 | 3:00 am

Union leaders urge vote for Ford agreement (Reuters)

Reuters - United Auto Workers union leaders urged members on Tuesday to approve a concessionary deal with Ford Motor Co, stepping up the pressure on General Motors Corp and Chrysler to reach similar cost-cutting labor agreements in coming weeks.
Source: Yahoo! News: Business | 25 Feb 2009 | 2:58 am

Union leaders urge vote for Ford agreement

DETROIT (Reuters) - United Auto Workers union leaders urged members on Tuesday to approve a concessionary deal with Ford Motor Co, stepping up the pressure on General Motors Corp and Chrysler to reach similar cost-cutting labor agreements in coming weeks.
Source: Reuters: Business News | 25 Feb 2009 | 2:58 am

US home prices fall as buyer mood sours

Survey shows consumer confidence hitting a record low in February while other data point to a huge drop in house prices in big US cities late last year
Source: Financial Times - US homepage | 25 Feb 2009 | 2:53 am

ING unveils new scheme for its suspended NZ funds

Investors in two suspended ING funds are being told that if they wait five years, they can choose to be guaranteed a minimum price for their units which will see them at least get "the bulk of their investment" back. Last March,...
Source: New Zealand Herald - Business | 25 Feb 2009 | 2:30 am

Aust clothing maker to slash almost 2000 jobs

Australian clothing manufacturer Pacific Brands said today it is to cut 1,850 jobs in Australia over 18 months after posting a A$150 million first-half loss and suspending its dividend. The cost-cutting will see Pacific Brands...
Source: New Zealand Herald - Business | 25 Feb 2009 | 2:00 am

Spending by tourists in 2008 down

Spending by international visitors fell by 3.2 per cent to $5.9 billion in the year to December 2008, the Ministry of Tourism said. Spending by Australians was down 1.2 per cent, while spending by Germans was down 2.7 per cent. The...
Source: New Zealand Herald - Business | 25 Feb 2009 | 2:00 am

NZ Oil and Gas profits up 30pc

New Zealand Oil & Gas reported a 30 per cent rise in half-year net profit to $54 million, but expected revenue to fall in the second half. The company said today that for the six months to the end of December, revenues from ordinary...
Source: New Zealand Herald - Business | 25 Feb 2009 | 1:30 am

BofA CEO: No talks on larger U.S. stake

NEW YORK (Reuters) - Bank of America Corp Chief Executive Kenneth Lewis said the largest U.S. bank does not need more federal aid and is in better shape than most rivals, even as "rumors, innuendo and falsehoods" cause its stock to fall.
Source: Reuters: Business News | 25 Feb 2009 | 1:28 am

Murdoch hails 'contrarian style'

Rupert Murdoch has sounded a defiant note about the future of News Corp, hailing the company's "contrarian investment style" as proof it is well positioned to weather the economic downturn
Source: Financial Times - US homepage | 25 Feb 2009 | 1:01 am

APN revenues, earnings fall in NZ as economy hits advertising

APN News & Media, publisher of The New Zealand Herald, reported a fall in revenues and earnings in this country for 2008 as advertising spending was hit by tough economic conditions. Full year revenues, before exceptional items,...
Source: New Zealand Herald - Business | 25 Feb 2009 | 1:00 am

Ford chiefs to accept 30% salary cuts

Bill Ford, chairman, and Alan Mulally, chief executive, agreed to cut their salaries by 30% this year and next as part of a drive to show that senior ranks are sharing in the sacrifices demanded from lower-level workers
Source: Financial Times - US homepage | 25 Feb 2009 | 12:51 am

Bernanke calms nationalisation fears

Stress tests of big US banks that start this week are not likely to lead to any of them being seized by regulators and nationalised outright, Ben Bernanke told Congress during testimony
Source: Financial Times - US homepage | 25 Feb 2009 | 12:40 am

Obama says 'day of reckoning has arrived' (AP)

AP - President Barack Obama says the "day of reckoning has arrived" for Americans after a spree of extravagant buying, gutted regulations and little or no long-term financial planning.
Source: Yahoo! News: Business | 25 Feb 2009 | 12:35 am

In Brief - Tuesday

Vornado Realty (VNO), which owns office buildings and shopping centers, said funds from operations fell 3.4% to $1.14 ex items, meeting views....

Source: Investor's Business Daily: BUSINESS | 25 Feb 2009 | 12:32 am

Business Briefs - Tuesday

Macy's beats, affirms guidance. The department store chain surged 12% to 8.29 after it said Q4 EPS dropped 36% to $1.06 ex items, a nickel better...

Source: Investor's Business Daily: BUSINESS | 25 Feb 2009 | 12:32 am

More Cell Phone Calls Mean More Money For This Switch Maker

Hard times have made consumers cut back on many things. But walk down the street anywhere and you'll likely see as many cell phones pressed to...

Source: Investor's Business Daily: BUSINESS | 25 Feb 2009 | 12:32 am

Trends & Innovations - Tuesday

Phone apps lack staying power

Source: Investor's Business Daily: BUSINESS | 25 Feb 2009 | 12:32 am

After The Close - Tuesday

MYRIAD GENETICS (MYGN), a maker of cancer screening tests, said its board approved a 2-for-1 stock split on March 25.

Source: Investor's Business Daily: BUSINESS | 25 Feb 2009 | 12:32 am

Trading principles

Small farmers in developing nations need help
Source: BBC News | Business | World Edition | 25 Feb 2009 | 12:01 am

Great British Consumer's last gasp

The mysterious case of the Great British Consumer grows curiouser by the day. Most pundits penned obituaries for the GBC long ago, blaming years of over-indulgence and exposure to the chill winds of recession.
Source: Latest Business News from Times Online | 25 Feb 2009 | 12:00 am

Bank of America fights to hide bonus payouts

Bank of America (BoA) will launch a legal battle to keep secret the details of $3.6billion ($£2.5billion) in bonus payments after John Thain, the former chief executive of BoA's newly acquired Merrill Lynch business, was questioned for a second time by the New York attorney-general's office.
Source: Latest Business News from Times Online | 25 Feb 2009 | 12:00 am

Thomson Reuters' news beats City expectations

Thomson Reuters reported 51per cent growth in fourth-quarter earnings yesterday as the financial publisher flourished in the face of the economic downturn.
Source: Latest Business News from Times Online | 25 Feb 2009 | 12:00 am

Citi close to deal with Treasury

Citigroup and the US Treasury are nearing agreement on a deal that would give the federal government a stake of about 40 per cent in the troubled bank in exchange for bolstering its depleted capital base
Source: Financial Times - US homepage | 24 Feb 2009 | 11:52 pm

How the Dow Jones industrials fared Tuesday (AP)

AP - Stocks rose Tuesday after Federal Reserve Chairman Ben Bernanke gave Wall Street reassurance that the recession could end this year, and that the government does not plan on nationalizing banks. The market was also hopeful ahead of a Tuesday night speech by President Barack Obama.

Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 10:59 pm

Write-Offs: 02.24.09

$$$ 'Johns' go to school, get charges dismissed [Charlotte Observer]

$$$ Latest calculator on nationalization [BV]

$$$ Grassroots: I am with Rick. [FW]

$$$ Checking in on Chuck Prince's Golf Game [Cityfile]

$$$ Barney Frank Demands Immediate Repayment Of Northern Trust Boondoggle Money [zero hedge]

Source: Dealbreaker | 24 Feb 2009 | 10:48 pm

Dodd Says Short-Term Bank Nationalization May Be Needed

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 10:42 pm

Search for safety takes healthcare to top of S&P (Reuters)

Reuters - With the economic crisis hurtling full speed ahead, investors have plowed cash into health care stocks, making it the largest group on the S&P 500 in at least 20 years as the search for safe havens abounds.
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 10:26 pm

Vikram Pandit Entering Last Days As Prince Alwaleed's Play-Thing?

Things like "crucial details" are yet to be hammered about but NBD, this thing is as good as done, according to the Financial Times.

Citigroup and the US Treasury are nearing agreement on a deal that would give the federal government a stake of about 40 per cent in the troubled bank in exchange for bolstering its depleted capital base.

People close to the situation said no agreement had yet been reached and the government had yet to give its approval to the plan proposed by Citi, which stops short of outright nationalisation. But they added that negotiations between Citi's executives and Treasury officials had made progress since the weekend and an announcement could come as early as Wednesday or Thursday.

Source: Dealbreaker | 24 Feb 2009 | 10:18 pm

Retailers report dismal 4th qtr, gird for future (AP)

AP - NEW YORK — Retailers marched out a series of cheerless results Tuesday for their most important season of the year, the fourth quarter, when consumers seem to have put off buying almost anything they had a choice about.

Source: Yahoo! News: Business | 24 Feb 2009 | 10:07 pm

Dionne Says Passing Stimulus Was `Remarkable Achievement'

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 9:57 pm

'Creeping Nationalism, Right?'

The good stuff starts at about 3:32.

Federal Reserve chairman Ben Bernanke testified on Capitol Hill today, and afterwards faced some sticky questions from members of the Senate Banking Committee, like this one from Republican Senator Bob Corker of Tennessee:

It seems to me that this has been creating this sort of "dead man walking," sort of zombie-like banking scenario, and while I have been not using these words out around, it seems to me that what you have explained is a creeping nationalism of our banks. I mean, in essence many of them don't have appropriate capital. You are going to stress test them, which means make them reserve up properly, which they should do, and I applaud that. And then you are going to provide the public funding to meet that capital requirement. So I don't like saying things like this, and squirmed a little bit when I was asked about Chairman Dodd's comments about nationalization but in essence this is a form of creeping nationalism, right?

Bernanke's response, after the jump.

Bernanke replied:

Senator, there are two sides to this. One side is providing the capital, which they need to have in order to provide credit to the economy, which is essential. But we're not just handing them this capital, saying, "Do your thing." We also have on the other side the supervisory oversight, the TARP oversight to make sure that they are not just sitting around, but that they are taking the steps necessary to clean themselves up, get themselves straightened out so that they will be profitable in the future. At that point, private capital will come in and public capital can go out. As I was saying before, the best sign of success will be when the government can start taking its capital out or the banks can start replacing the public capital with private sector capital. That's what we are aiming for.

That answer didn't satisfy Corker, who continued to push Bernanke:

What I hear you saying today -- again I'm not being critical, I might be later but I'm just observing right now -- is that we're going to get them [to] sort of take their medicine, we're going to go in and make them reserve up for these accrual loans that we know is where the next huge hole is, but we're going to give them public dollars. I don't, I mean that, to me, and I certainly have been around that long here, but that to me is nationalization. I mean, that, that..I would like for you to give me a term to use as I leave here as to what we would call that.

Bernanke:

Call that a public-private partnership. It's not nationalization, because the banks would not be wholly owned or probably not even majority-owned by the government. The government would be a shareholder along with the private shareholders.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 9:50 pm

Thousands queue at New York job fair

Throngs of unemployed New Yorkers weathered sub-freezing temperatures on Tuesday in hopes of finding new work amid rising job cuts
Source: Financial Times - US homepage | 24 Feb 2009 | 9:49 pm

Wall Street rallies off 12-year lows (AFP)

AFP - Wall Street shares roared higher Tuesday a day after key indexes fell to 12-year lows, as investors shrugged off economic gloom ahead of a key speech from President Barack Obama.

Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 9:45 pm

For Mardi Gras, Bailout Floats

Listener Barbara Baldwin of New Orleans went down to the parades this Mardi Gras, and bumped right into the economy. Click to share her curbside view.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 9:34 pm

Case Says Low-Value U.S. Property Prices Falling the Most

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 9:10 pm

Alexander Sees Pace of U.S. Economic Deterioration Moderating

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 9:08 pm

Crescenzi Says Treasuries Aren't Overvalued

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 9:02 pm

Bove Says U.S. Has No Ability to Nationalize Banks

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 9:00 pm

TARP To Bail Out White Collar Criminals

Fortunately for all you evil doers out there, the various bail out provisions in the works (or already implemented) stand to benefit you too. Times are hard on fraudsters these days. Your Ponzi scheme is in danger of running out of cash, withdrawals are up, and due diligence has seen a huge growth spurt in the wake of Madoff and Stanford. What is a white collar criminal to do in this recessionary environment?

Steal TARP funds, of course.

"History teaches us that an outlay of so much money in such a short period of time will inevitably draw those seeking to profit criminally," Mr. Barofsky said in testimony for the afternoon hearing obtained by Dow Jones Newswires.

Federal regulators have already seen evidence of alleged TARP-related crime. In late January, the Securities and Exchange Commission charged a Nashville-based firm with defrauding investors of at least $6.5 million by claiming their money was invested in the TARP and other securities that didn't exist.

"If, by percentage terms, some of the estimates of fraud in those programs apply to TARP programs, we are looking at the potential exposure of tens if not hundreds of billions of dollars in taxpayer money lost to fraud," Mr. Barofsky said, noting that the total amount of money potentially at risk in TARP-related programs is approximately $2.875 trillion.

Hey, stimulus is stimulus.

TARP Fraud Could Cost Taxpayers Billions, Watchdog Warns [The Wall Street Journal]

Source: Dealbreaker | 24 Feb 2009 | 8:58 pm

NYSE considers relaxing its one-dollar rule (AP)

AP - With many major companies trading in penny-stock territory, the New York Stock Exchange is considering relaxing a rule that requires shares to trade above a dollar.
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 8:29 pm

Presented By:

Source: Dealbreaker | 24 Feb 2009 | 8:27 pm

Bonus Watch '09: Citadel

I guess you could say that this is to be expected, but it's the sort of malarkey we'd expect of a more Charlotte-based Ken and not our preferred K out (mid)West. Supposedly our favorite Chicago hedge fund has put a clause in bonuses to keep people loyal 'til at least June (when the majority of their goodie bags will be paid out), though "some ship jumping has already begun." Also hideous: apparently bonuses this year were "in-line" with the rest of the Street, which is common, and uncool.

UPDATE: Au contraire: we're told that Citadel's bonuses were paid in their entirety in December and that they came out of KG's pocket.

Source: Dealbreaker | 24 Feb 2009 | 8:27 pm

Oil jumps on stock market bounce (Reuters)

Reuters - Oil prices rose 4 percent on Tuesday, tracking a bounce on Wall Street, after U.S. Federal Reserve Chairman Ben Bernanke said he was committed to protecting the troubled banking sector.

Source: Yahoo! News: Business | 24 Feb 2009 | 8:23 pm

Oil jumps on stock market bounce (Reuters)

Reuters - Oil prices rose 4 percent on Tuesday, tracking a bounce on Wall Street, after U.S. Federal Reserve Chairman Ben Bernanke said he was committed to protecting the troubled banking sector.

Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 8:23 pm

Harry For [fill in the blank]

We suspect that when Harry Markopolis called FINRA "corrupt," he at least seems to have hit the nail on the head:

Two employees of Allen Stanford's financial business, which U.S. regulators have accused of massive fraud, held advisory roles at a watchdog group overseeing U.S. broker-dealers aimed at preventing abuses.

Lena Stinson, director of global compliance at Stanford Financial Group, is listed as serving on the membership committee of the Financial Industry Regulatory Authority, or FINRA, which describes itself as the largest independent regulator of U.S. securities firms.

Frederick Fram, the chief operating officer of Stanford Group Holdings, serves on the FINRA continuing education content committee, "where he participates in creating material for the Regulatory Element continuing education program," according to a biography on Stanford's website.

Entertaining. Of course, don't forget:

On Tuesday, FINRA named Richard Ketchum as its chief executive officer. He replaces Mary Schapiro, who resigned after she was confirmed as chairman of the U.S. Securities and Exchange Commission.

Stanford workers have ties to regulator FINRA [Reuters]

Source: Dealbreaker | 24 Feb 2009 | 8:20 pm

Donovan Says Transparency Is Key for Bank Stress Testing

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 7:59 pm

Naroff Says Banks With Fed Capital Are `Quasi-Nationalized'

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 7:58 pm

Silvia Sees U.S. Consumers Struggling, Concerned About Jobs

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 7:56 pm

Thompson Says Full U.S. Bank Nationalization Is `Unlikely'

Source: Bloomberg - All Podcasts | 24 Feb 2009 | 7:54 pm

Northern Trust's No-No

Yes, we heard about the soirees thrown by Northern Trust last week, but seeing as though the bank received a measly $1.6 billion in TARP money, and there were no facials to speak of, we didn't so much give a rat's A. Others beg to differ, calling the thing an idiotic outrage, and surely Rep. Elijah Cummings is working on some zingers for the organizers of the thing in a Congressional holding room where Barney Frank keeps his people locked up and riled up (Maxine Waters is there, being spoon-fed a cocktail of uppers and downers, as is Rep. Rosa DeLauro, chewing on a piece of leather) so here it is, strangely courtesy of TMZ:

Source: Dealbreaker | 24 Feb 2009 | 7:47 pm

What Will Citi 'Do' For Its Largest Shareholder?

Charlie Gasparino points out the most important aspect of the maybe Citi-Gov deal that has been entirely, shamelessly, overlooked thus far. If the US takes a forty percent stake in the Big C, it'll displace Prince Alwaleed as the single largest shareholder. First off, taking the Prince's feelings into consideration, this is devastating. Sure, in the beginning, Vikram et al will probably act as though 'leed is still important to them but you know before long Pandito will be all, "I actually gotta take this call," heretofore NEVER interrupting the Prince during one of their marathon phone conversations. After a while, he'll be "some guy we used to know in Saudi Arabia."

Brushing those tears aside, however, an important question must be answered. According to CG, when Alwalweed would say 'jump,' Citi would 'jump three feet, so you've got to multiply that by ten for the government and it's 30 feet' (the math behind this apparently being that Al has an approximately 4 percent stake and 40/4 = 10 * 3 = 30 ft). But obviously there'll be other preferred treatment besides jumping associated with having your tentacles in C, and we need to determine now what kinda sick stuff the senior staff and board are willing to do. Wining and dining, sure, but are we also talking, like, A to O?

Source: Dealbreaker | 24 Feb 2009 | 7:05 pm

Top 20 Web Based Business Management Apps & Tools

Running a small business can be an expensive affair. Not only do you need expensive software to keep track of sales; expenses and documentation, but you also need to ensure that you regularly back-up your data and there is also the issue of network security which needs to be addressed.

Web base business management applications and tools offer the perfect solution. You can find money management; time keeping; project management; contact management; CRM applications and so much more, all at a fraction of the cost of traditional software. This article guides you through some of the best in each category.

Financial Management Applications

Whether you are running the finances of a one man band or a small but growing business, managing your finances is both critically important and immensely boring. Luckily there are some easy ways to manage your cashflow, invoicing, expenses and taxes online.

1. Mint
This online money management system enables you to manage all your financial transactions, including credit cards, banking and investment accounts, centrally and the facility is free to use. It even has budget planning tools and will send you an email or text message if your balance is low, or if you have bills outstanding.

2. Harvest
This web based business management system is great for sole proprietors and small businesses alike. It includes time keeping, estimates and expenses tracking as well as billing and invoicing facilities. It also includes powerful reporting tools and Quickbook exporting functionality.

3. Freshbooks
A web based financial management system, Freshbooks enables you to create estimates, manage time and expenses online, and even generate invoices from timesheets. For peace of mind it offers complete data backups and firewall protection, and is tightly integrated with the best credit card payment processors including PayPal and Authorize.net.

4. LiteAccounting
This easy to use financial management system enables you to send invoices to customers directly from the online system, as well as track customer payments. It includes a search facility so that you can easily view invoices per customer and you can even set up recurring invoices, which is a big time saver.

5. Outright
A secure online bookkeeping system, Outright is great for keeping track of the income and expenses for your business. It enables you to view quarterly profits and even provides tax estimates, which is particularly good for helping to manage cashflow and the allocation of budget. Outright also has a handy feature that displays tax date reminders so that you never miss a payment.

Documentation Management Apps

Modern businesses are often footloose with home offices and web conferencing tools replacing the cubicle and board room. But staff still need to share and collaborate in order to get things done, a function that can now be done entirely online using tools such as these.

6. Google Docs
This web based documentation sharing facility is offered free by Google. You can upload and edit documents online, or save them to your desktop in many different formats including .doc, .xls and .ppt. Should you require privacy, it is possible to restrict access to the uploaded documentation and to change document ownership. Furthermore, it is easy to see the history of revisions, a feature that is particularly useful when a group of people are working on the same document over a period of time.

7. Backpack
This is another very popular and accomplished web based document sharing tool, which enables you to share documents of many different formats, setup todo lists, notes and even pictures. It even has a shared group calendar and a centrally managed message facility ensuring that everyone gets to read important news.

8. AirSet
AirSet allows you to share documents, contacts and calendars online. It includes several document templates for publishing anything from presentations to newsletters. Contacts are managed centrally ensuring that as soon as a contact is added or updated, the information is immediately shared.

Project Management Tools

Getting things done is more than just a mantra: it’s what makes the difference between a successful and stagnant business. Choosing a good project management app will save you time, increase productivity and drive profits through increased efficiency. In short, if you are in business then you need good project management.

9. Basecamp
This complete web based project management system enables advanced milestone tracking, todo list allocation and tracking, time tracking and project management reporting. Also included in Basecamp is a file sharing facility, message boards and even a chat facility. This is a perfect tool for companies with staff working remotely.

10. Wrike
Wrike may be lesser know, but it is nonetheless an easy to use project management system that even allows you to create tasks from emails. Aside from the normal task tracking and time management functionality, Wrike also includes dynamic Gantt charts, task reminders and it has integrated email functionality which automatically emails a staff member as soon as a task has been assigned to them.

11. Project Spaces
Project Spaces is a comprehensive project management tool that also includes a document library for online collaboration and documentation control. It has a centralized calendar for tracking events, a contact management system and you can set up discussion threads to share ideas.

Communication Tools

You’ve got to communicate and be accessible if you want to survive, especially in a challenging market. Go beyond the usual forms of communication and interact with your staff, customers and clients with these tools for improved communication.

12. Meebo
Meebo is an instant messaging service with a difference: it enables group chats and best of all you can chat to anyone even if they normally use a different instant messenger account. Meebo is compatible with AIM, Google Talk, MSN Messenger, Yahoo! Messenger, Facebook chat and MySpace IM.

13. Twitter
The latest in online social networking, Twitter is a very popular communication tool accessible from the web and mobile phones. Tweeting is very similar to sending a 140 character text message from your mobile phone, except the messages can be published directly to a blog and read by your followers. Twitter is without doubt on the bleeding edge of communication, opening up new means of sales and lead acquisition.

14. Campfire
The creators of Basecamp and Backpack have also released another online tool called Campfire. This is purely a web based communication tool, enabling businesses to chat to employees and clients online. It can be integrated with Basecamp and is a very secure means of communicating online, which is an extremely potent tool especially when combined with their other collaborative products.

15. Highrise
A comprehensive contact management system, Highrise is web based and enables you to manage your contracts centrally, keep tabs on conversations, send instant message reminders via text or email, as well as post notes and messages to colleagues online.

CRM Applications

Getting new customers is only part of the game. A successful also needs repeat customers, which means fantastic service to back up your product.

16. vTiger
vTiger is an open source CRM and contact management system. This free system features all the customer support functionality you could ever need including raising trouble tickets, a built in knowledge base, customer self service facilities, history tracking, emailing facilities and reporting tools.

17. Mojo Helpdesk
This is a powerful online customer relationship management system which allows you to track customer requests, allocate the requests to staff members and communicate the progress of the request with the customer using an online portal.

18. UserScape HelpSpot
A CRM system that can be hosted online or downloaded onto your own secure, HelpSpot is intuitive and very easy to use. Workflow rules for customer request progression can be maintained, requests can be customised to include fields specific to your requirements and it has a built-in customer self-service portal that helps increase the productivity of your customer relations staff.

Complete Small Business Solutions

What if you would prefer to have everything in one single place, rather than using different tools for different needs? Then try one of these business management suites where everything is available in one single login.

19. Zoho
Zoho offer a comprehensive suite of web based tools and applications catering to the needs of small businesses. From emailing facilities, to online spreadsheets; documentation control to project management tools; invoicing facilities and even a full featured Wiki - Zoho has it all in one central place.

20. WORKetc
If you are looking for a complete suite of applications to run your business, then WORKetc is a great solution. It includes document management, timesheeting, sales management, project management, billing and invoicing, reporting and even customer support tools.

Source: Business Pundit | 24 Feb 2009 | 6:50 pm

Sign Of The Times

We knew that some exceptions were being made with respect to listing requirements, but the extent of firms that could be facing delisting (though it is discretionary for the S&P 500) is presently alarming. Consider:

In the table below, we summarize the number of stocks in each sector that currently do not meet the $3 bln market cap threshold to be eligible for inclusion in the S&P 500. In the Consumer Discretionary sector, over 40% of the stocks currently have market caps of less than $3 bln. For the index as a whole, nearly 27% of the stocks that are currently in the index would not be eligible for inclusion if they were being considered today. Fortunately for them, S&P doesn't automatically kick companies out of the index when they fall below the market cap threshold. And since there aren't many companies outside of the index that could replace the ones that no longer would qualify, the only thing S&P can really do is lower the requirements.

The S&P 500's Incredibly Shrinking Market Cap [Bespoke Investment Group] via Abnormal Returns



Source: Dealbreaker | 24 Feb 2009 | 6:33 pm

TCE For Beginners

Our friends over at Baseline Scenario have posted another one of their helpful beginners guides, this one deals with a proposed plan to convert taxpayers' holdings in Citigroup from preferred to common stock. The plan is aimed at helping Citi boost its tangible common equity, the value of its common shares. From Baseline Scenario:

Citi wouldn't actually get any new cash from the government, but it would be relieved some of the dividend payments (currently close to $3 billion per year), and of the obligation to buy back the shares in five years. This is a real benefit to the bank's bottom line, and hence to the common shareholders. At the same time, though, Citi would issue new common shares to the government, diluting the existing common shareholders (meaning that they now own a smaller percentage of the bank than before). In theory, the amount by which the shareholders in aggregate are better off should balance the amount of dilution to the existing shareholders.

The government starts its stress tests of the banks this week and some expect TCE to play an important role.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 6:33 pm

Tim Geithner Needs Your Help

A lot of people have been trash talking our new Treasury Secretary for not being off book during his big Congressional debut a couple weeks back, for not moving his ass quickly enough, and for squeezing too tightly. Well guess what, tough guys? It's not his fault!

Whereas Paulson had a stenographer, driver, and fluffer, T. Geith is working all by his lonesome. According to ABC News, the lil' fella is "sitting over there by himself and does not have a staff," though actual estimates put the number at "probably ten to twenty percent" of what it should be. Apparently one major factor in the lack of Little Geiths is that they need people who have "financial expertise" but can also pass what is likely a ramped up vetting process, due to some awkward moments with Turbo Tax made public. Does that sound like you? Have you longed for the opportunity to whisper sweet nothing's in those elfin' ears*? Take one for the team and get in touch.

*They look bizarrely unpointy in the one above but you know what I'm talking about.

Source: Dealbreaker | 24 Feb 2009 | 6:24 pm

Weak financials drag down FTSE 100 (AFP)

AFP - The leading share index slipped into the red on Tuesday amid fears for the world economy.

Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 6:17 pm

Sully Speaks For You

We've heard rumblings from some of you that businesses are using the economic crisis as cover for long-planned layoffs, salary freezes, etc. You've got company.

Captain Chesley "Sully" Sullenberger, the guy who landed his US Airways plane safely in the Hudson River last month, just told the House aviation subcommittee that in recent years his pay has been slashed 40 percent and his pension terminated. AP reports that the cuts came after post-9/11 airline bankruptcies.

"The bankruptcies were used by some as a fishing expedition to get what they could not get in normal times," Sullenberger said.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 6:07 pm

Vacant retail spaces get creative re-use

With more retail stores closing in this recession, property owners are left with a lot of vacant space to fill. Some are finding creative ways to do so. Tamara Keith reports.
Source: Marketplace | 24 Feb 2009 | 5:55 pm

Business franchises defaulting big time

In this downturn, franchisees are defaulting on loans guaranteed by the Small Business Administration in record amounts. That could have a huge impact on franchise lending in the future. Mitchell Hartman reports.
Source: Marketplace | 24 Feb 2009 | 5:55 pm

Letters: Housing crisis, banks, gadgets

Kai Ryssdal reviews your thoughts on stories about the housing crisis, bank bailouts, big numbers and small gadgets.
Source: Marketplace | 24 Feb 2009 | 5:55 pm

Big Easy's economy is looking up

New Orleans residents can celebrate more than Mardi Gras. The city's economy is doing pretty well because of the tourism and construction industries. Will it last? Kate Archer Kent reports.
Source: Marketplace | 24 Feb 2009 | 5:54 pm

Did math formula cause financial crisis?

When math wizard David X. Li invented a formula to price collateral debt obligations, many on Wall Street adopted it. But now the formula's being blamed for spurring the collapse of the financial sector. Kai Ryssdal discusses the formula with Felix Salmon, who wrote about it in Wired magazine.
Source: Marketplace | 24 Feb 2009 | 5:54 pm

AmEx pays cardholders to end accounts

American Express is paying some cardholders $300 to cancel their accounts to avoid the risk of more defaults. Is this the beginning of a new trend? Janet Babin reports.
Source: Marketplace | 24 Feb 2009 | 5:54 pm

Markets aren't always good forecasters

Many people look at the major stock market indices as leading economic indicators. But as Jeremy Hobson reports, the volatile stock markets aren't always indicative of what's going on in the economy.
Source: Marketplace | 24 Feb 2009 | 5:54 pm

AIG may seek government help, again

Struggling insurance giant AIG is seeking more help from the government as it prepares to reveal a fourth-quarter loss of $60 billion. But what happened to the $150 billion in bailout money it already received? Steve Henn reports.
Source: Marketplace | 24 Feb 2009 | 5:54 pm

Will Canada's Dollar Muscle Up?

David Jeter writes:

When my wife and I married 7 years ago, the Canadian dollar was about 68 cents. Last year it was $1.02. We take a trip every year, and now it is back to about 80 cents. What factors influence the price of currency, and what impact does this have on the overall crisis. Is the fact that Canadian banks are doing well going to mean that their dollar will strengthen compared to ours?

Marc Chandler, who runs a currency team for Brown Brothers Harriman, offers this answer:

There are many forces that impact currency prices. Not only do the forces change from time to time but also the strength of the forces ebb and flow. The strength of the banking system though is not typically a draw. Since last July, the Canadian dollar has lost about 18% against the US dollar, but it has gained a couple percent against the euro and 12% against the Mexican peso and 16% against the Swedish krona and about the same against the Australian dollar.

What you are detecting is not so much about Canada as it is about the strength of the US dollar, which has appreciated markedly due to other non-Canadian factors, like short-covering -- de-leveraging -- and flight to the depth and breadth of the US capital markets.

In short: When times are bad, people still like the U.S. dollar.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 5:33 pm

Somewhere In The Amazon

Paul and Kristen write from Otavalo, Ecuador:

In a podcast from mid-January you made a comment about going to a "village somewhere in the Amazon" to find someone who hadn't heard of a subprime mortgage. Well, we were there last week, in the Ecuadorian Amazon basin on the Rio Napo. I asked around. True, no one seemed to know exactly why the U.S. economy had crumpled and taken the rest of the world with it. Even the generic concept of a mortgage seemed unfamiliar to many, not to mention a subprime one.

We ran into a bunch of families living in 200 sq ft cabins on stilts, living off fish from the river and the patch of plantains and yucca nearby. Not a food package visible in the house. That said, anyone connected with tourism was certainly feeling the effects. Our family of four were the only guests at our hotel in Tena and at the cabins in the jungle. "There used to be buses of tourists arriving every day," said a taxi driver, "and now none." The experience of a friend who spent a month traveling the country was the same, when it comes to tourists, Ecuador's empty.

A recent newspaper editorial reviewed the four-fold hit the country seems to be taking: falling remittances (down 25% over last year), falling commodity prices, tightening of world credit markets, and rising unemployment. Turns out Spain, where many Ecuadorians travel to work, has a new offer regarding unemployment insurance for foreign nationals. Guaranteed 6-months income, the first half as a lump-sum in Spain and the second half as a lump-sum upon return to the worker's country of origin. For Ecuador it means less remittances and more people looking for work here.

Ecuador depends on oil sales for about 63% of its exports, and I suspect it's not cheap to extract like in the Middle East. On our way down from Quito, we went by the pipeline that pumps all the oil over the Andes to get to the coast for shipping. It appears that the populist administration of President Rafael Correa was planning on those high oil prices funding many of the promises he's made as part of "la revolution ciudadana" (the citizen's resolution). Public works are everywhere, and school no longer requires tuition to continue past 6th grade. But now there's retired teachers marching in the streets to protest the 40% cut to their pensions. Sr. Correa's administration is busy expelling U.S. diplomats for reportedly "meddling" in the national police anti-drug unit while the administration is also sending representatives to Washington and the IMF looking for loans. Hard times to be anti-imperialist in a poor country, it turns out.

And you were also wondering about that time where the dollars are. There's a bunch down here. Ecuador "dollarized" in 2001, so we've been doing commerce in a combination of US bills, US coins, and size matched Ecuadorian coins.

President Rafael Correa rails against the imperialist influence of doing business in dollars and talks frequently about reverting to a national currency. One newspaper editorialist mapped the relative impossibility of this, with runs on the banks and massive losses of value in the savings citizens have amassed in dollars. While many imported items end up being really expensive, and the falling dollar has impacted them against other world currencies, the currency value has stabilized like never before and immigrants from Colombia and Peru cross the borders to work here and earn dollars. With almost everything done in cash here (recent bank failures have done little to improve consumer confidence in banks), there are a lot of dollars in circulation. I've never seen a check change hands and only the most expensive stores, restaurants and hotels take charge cards. They typically add 3-10% to cover processing fees. ATMs work well, but not always. So we often have hundreds to over a thousand dollars on hand. I never have that kind of cash around when living my direct-deposit/charge-card life in the States.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 5:01 pm

Madoff Papers Take Flight

A friend of mine, freelance writer Erik Baard, stumbled into the story of Bernie Madoff trading records blowing in the wind -- literally.

Erik turned it into a New Yorker Talk of the Town (freelancers, you'll know why this could also fit in our Green Shoots category). He reports that papers were flying all over his Queens neighorhood:

The trades may be fictitious; investigators suspect that Madoff never executed many of the trades that he'd claimed he was making. When you see the slips now, each with the information filled in as if by an electric typewriter, you begin to appreciate how much scut work a fraud of this magnitude would have required. For Madoff to have pulled it off himself, you can imagine that he would have had to fill out fake slips day and night, or to have deployed a Ponzi robot.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 4:26 pm

Consumer Confidence. Ugh.

The newest Consumer Confidence Index is in. Guess which way it went?

Down, of course. With 100 as the top of the scale, we're now at an all-time low of 25. That's a drop from 37.4 in January.

The Wall Street Journal says Fed Chairman Bernanke is telling Congress today that the recession could end this year.

Me, I'm living for the Present Situation Index, which fell from 29.7 to 21.2. In today's press release, the Conference Board's director, Lynn Franco, says:

"The decline in the Present Situation Index, driven by worsening business conditions and a rapidly deteriorating job market, suggests that overall economic conditions have weakened even further this quarter.

"Looking ahead, increasing concerns about business conditions, employment and earnings have further sapped confidence and driven expectations to their lowest level ever. In addition, inflation expectations, which had been easing over the past several months, have moderately picked up. All in all, not only do consumers feel overall economic conditions have grown more dire, but just as disconcerting, they anticipate no improvement in conditions over the next six months."

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 3:28 pm

Rented Lifestyles Take Off as Economy Dwindles

Want to look classy, but lack the funds? The answer is easy: Rent your way to cool. The UK Telegraph reports that “rented lifestyles” are becoming increasingly popular:

Websites offering deals on everything from jewellery and children’s toys to fast cars and affordable artwork for a fraction of the price of buying have experienced a surge in visitor numbers.

“The credit crisis has been instrumental in turning people round to renting much more - you get the experience of a carrying a Prada bag or [driving] a Ferrari but you don’t have the outlay,” Erento’s (a rental company’s) Clinton Patterson said.

Sandy Chadha, managing director of handbag rental firm www.fashionhire.co.uk, said number of transactions on the site have increased to around 9,000 this month. Business has grown 25 per cent this quarter compared to the same period last year.

Even brides are considering cutting costs by hiring. Sue Goodchild, owner of Essex-based House of Couture designer wedding dress company, said around 30 per cent of brides have switched from buying to renting.

Source: Business Pundit | 24 Feb 2009 | 3:28 pm

Gov't looks to quell nationalization fears (AP)

AP - The U.S. government on Tuesday sought to quell concerns that the administration is moving toward nationalization of the country's ailing financial system, but said it would provide additional support to banks that do not have an adequate buffer to survive in an even worse economy.

Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 3:04 pm

'Responsibility Without Power'

I read the news today, and what a crazy pileup. Big corporations like Citigroup, AIG, Chrysler and GM are adding billions to the tab for government intervention. The stock market's back in Smashing Pumpkins land.

Europe is in eight different flavors of crisis. Federal Reserve Chairman Ben Bernanke is set to tell Congress something about the economic mess this morning, as is President Barack Obama tonight.

If you've got good news for our Green Shoots category, please send it. Meanwhile, there's this, from Planet Money regular Simon Johnson of Baseline Scenario, who writes that in many ways the U.S. has already nationalized the banks:

We have state control of finance without, well, much control over banks or anything else . . .

[W]e can limit executive compensation (maybe) but we don't get to appoint directors (or replace entire boards) and we have no say in who really runs anything. Responsibility without power sounds accurate.

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Source: NPR Blogs: Planet Money | 24 Feb 2009 | 2:51 pm

GMail Problems Illustrate that Google Rules the World

The top topic on Twitter this morning was that Gmail was down

Were you a member of the panicked masses who could not handle today’s GMail problems? I certainly was. I spent hours obsessively refreshing the GMail site, refusing to believe that GMail–my GMail–wasn’t working.

Now that GMail is back online, I’m no longer sitting in a cold sweat. See, I’m convinced that if GMail had stopped working for, say, one day, I would miss a career-altering email, or perhaps some important family news, and become obsolete. The fear is irrational, but almost inevitable when you’re so used to having something like GMail functioning properly all the time.

GMail is just technology. So is Google. These are tools that we humans use. But we have a tendency to interpret them as extensions of ourselves. These silent, helpful, reliable mental partners become as automatic as breathing or blinking.

And when they go down, all hell breaks loose.

Last month, Google marked every webpage as spam. Being the responsive company that it is, Google soon fixed the problem. But for a short time, people were truly disoriented. Google’s malfunction led to emotional turmoil that temporarily froze people. We just don’t know what to do when our silent mental partner goes down.

We’re so reliant on Google, and Google alone, that we freeze right along with it. As humans, we are independent of it and able to function without it–for short periods of time. But we’re not trained to understand that. A Google catastrophe is a world catastrophe.

It follows that:

a) Humans are emotionally dependent on Google
b) When Google freezes, humans freeze–and that is a single-point catastrophe
c) We are not familiar with the courses of action we can take when Google does go down
d) Google has a direct effect on our well-being

When I worked at Google, there was a wonderful, satirical world domination plan sketched out on a whiteboard in one of the buildings. The idea was that Google would take over every aspect of daily life with products like Google Cola, Google gas stations, Google countries, etc.

Ironically, I think that Google has managed to rule the world, just not in the way the whiteboard illustrated. GMail’s problems today prove it.

Source: Business Pundit | 24 Feb 2009 | 1:16 pm

NetSpend: An Option for Patient People Without Bank Accounts

NetSpend offers prepaid Visa and MasterCard debit cards. The cards are especially useful for people without bank accounts or with bad credit. Rather than being linked to a bank account, they are reloadable, meaning that customers can head to a local Safeway, Winn-Dixie, gas station, or other participating establishment to load cash onto the card.

Netspend gives people the ease and convenience of a credit card without the required bank account or paperwork. Card usage is not reported to credit bureaus, so users do not build credit history by using them. Customers have also experienced longer-than-expected holds on funds and arduous identity verification procedures–byproducts of the relative anonymity involved in the card–so it does come with a potential price.

Also, watch out for fees: The card costs $9.99 to purchase, and $4.95 to reload.

It’s a good deal if you:

a) Don’t have a bank account, or cannot get one
b) Are prepared for some registration delays and holds on your funds
c) Are willing to pay to reload your card

If you live week-to-week, or rely heavily on having your money instantly (and can’t afford blocks on your account), you may want to consider other options.

Source: Business Pundit | 24 Feb 2009 | 12:17 pm

CellPhones.org Announces Blogger Appreciation Contest

How would you like to use your cell phone as much as you want, for free, all year? You can, if CellPhones.org chooses you as its winning blogger. Here are the details on the contest:

Cell Phones .org thinks that bloggers don’t get enough appreciation and for that reason they are running a Blogger Appreciation Contest. The contest will reward the three winners with some really cool prizes:

First Prize: a full year’s worth of your cell phone bill (up to $1000)
Second Prize: free cell phone (does not include plan)
Third Prize: $100 gift certificate to use at Cell Phones .org

Nominations for the contest will be accepted until February 28th 2009. Blogs that have been nominated will then ask their readers to show their appreciation by voting for them over the next few weeks. Voting will be held from March 1st until March 17th. Each visitor can vote once per day during the voting period.

To nominate your blog or any other blog, go to the Cell Phones.org nomination page.

Source: Business Pundit | 24 Feb 2009 | 11:37 am