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GM posts massive loss, auditor may question viabilityDETROIT (Reuters) - General Motors Corp posted a nearly $31 billion loss on Thursday for 2008 and said its auditors were likely to cast doubt on its ability its viability as it seeks an expanded federal bailout to stay afloat.Source: Reuters: Business News | 26 Feb 2009 | 2:28 pm Government admits taking advice on cutting public sector pensionsThe Treasury has admitted taking legal advice about "defaulting on public sector pensions".Source: Telegraph Finance | 26 Feb 2009 | 2:26 pm Cooper Tire rolls into loss columnCharges, lower volume and higher raw-material costs roll Cooper Tire & Rubber Co. into the red, the company says Thursday.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:24 pm Wall Street points higher as stocks rise overseas (AP)
Source: Yahoo! News: Stock Markets News | 26 Feb 2009 | 2:23 pm Bond Report: Treasurys down with auction, deficit in focusAs prices again decline, Treasury yields move higher for a fourth consecutive session. Traders play off the government's impending sale of $22 billion in 7-year notes, the last of three record-sized note auctions this week.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:23 pm UPDATE 1-Barnes & Noble sells majority stake in Calendar ClubFeb 26 (Reuters) - Barnes & Noble Inc , the world's largest bookseller, has sold its majority interest in Calendar Club for about $1 million in cash and $6 million in notes.Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:21 pm Bank charges: customers could get refund after court rulingMore than a million bank customers that have been hit by "unfair bank charges" were given hope yesterday that they will receive a refund after a ruling by the court of appeal.Source: Telegraph Finance | 26 Feb 2009 | 2:20 pm U.S. workers on jobless benefits at record high (Reuters)Reuters - The number of U.S. workers continuing to receive state jobless aid jumped to record high in mid-February, data showed on Thursday, as the 14-month recession ravaged the economy and squeezed companies.Source: Yahoo! News: Business | 26 Feb 2009 | 2:18 pm U.S. workers on jobless benefits at record highWASHINGTON (Reuters) - The number of U.S. workers continuing to receive state jobless aid jumped to record high in mid-February, data showed on Thursday, as the 14-month recession ravaged the economy and squeezed companies.Source: Reuters: Business News | 26 Feb 2009 | 2:18 pm Economic Report: Demand for durable goods sinks 5.2%Demand for U.S.-made durable goods falls for the sixth straight month in January amid widespread weakness from both domestic and foreign buyers.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:18 pm SNAPSHOT - Financial Crisis - 1417 GMT- President Barack Obama will forecast the biggest U.S. deficit since World War Two in a budget that would spend billions to arrest the economy's freefall. A $1.75 trillion deficit for the 2009 fiscal...Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:17 pm Banks to lift Wall St. at open but data bleak (Reuters)
Source: Yahoo! News: Stock Markets News | 26 Feb 2009 | 2:16 pm Banks to lift Wall St. at open but data bleakNEW YORK (Reuters) - Stocks headed for a higher open on Thursday as investors searched for beaten-down shares, with financial shares set to rebound following reassuring news from Europe on bolstering the banking sector.Source: Reuters: Business News | 26 Feb 2009 | 2:16 pm Banks to lift Wall St. at open but data bleak (Reuters)
Source: Yahoo! News: Business | 26 Feb 2009 | 2:16 pm Obama forecasts $1.75 trillion deficit this yearWASHINGTON (Reuters) - President Barack Obama will forecast the biggest U.S. deficit since World War Two in a budget that urges a costly overhaul of the healthcare system and would spend billions to arrest the economy's freefall.Source: Reuters: Business News | 26 Feb 2009 | 2:14 pm Obama forecasts $1.75 trillion deficit this year (Reuters)
Source: Yahoo! News: Business | 26 Feb 2009 | 2:14 pm Danaher Announces Proposed Public Offering of Senior NotesWASHINGTON, Feb. 26 /PRNewswire-FirstCall/ -- Danaher Corporation (NYSE: DHR) today announced the proposed public offering of $500 million of its senior notes due 2019. The...Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:14 pm Fed’s Bank Stress Test Doesn’t Account For “Black Swan”Today, the Federal Reserve answered some questions on the bank “stress test”, which they say is being conducted, “to determine if the largest U.S. banking organizations have sufficient capital buffers to withstand the impact of an economic environment that is more challenging than is currently anticipated.”       Source: 247 Wall Street | 26 Feb 2009 | 2:12 pm Jobless claims spike to 26-year highThe number of Americans filing initial claims for unemployment insurance spiked, and those living on unemployment benefits hit a record high, according to a government report released Thursday. For the week ended Feb. 21, 667,000 Americans filed initial jobless claims, up 36,000 from a revised 631,000 the previous week. That's the highest figure since October 1982.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 2:12 pm RLPC-Kabel Deutschland says lenders agree covenant changesLONDON, Feb 26 (Reuters) - Germany's Kabel Deutschland GmbH (KDG) [KABLD.UL] said on Thursday that a majority of its lenders have agreed to modify a covenant on 2 billion euros ($2.6 billion) of senior...Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:10 pm Metals Stocks: Gold falls for fourth straight session, near $940 an ounceGold futures fall Thursday for a fourth straight session to near $940 an ounce as higher stock markets and crude prices reduce safe-haven buying.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:07 pm Wall Street hopeful on Obama budget plansWall Street stocks were set to react well this morning to news that President Barack Obama will run up the largest deficit since the second world war in order to stimulate the economy and reform healthcareSource: Financial Times - US homepage | 26 Feb 2009 | 2:05 pm Futures Movers: Crude futures rise 2%, pacing broad gains in energy pricesCrude-oil futures trade above $43 a barrel, up 2% following Wednesday's rally, as price gains key off a decline in gasoline inventories as well as an impending higher open on Wall Street.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:05 pm 'No Sector Is Safe'Unemployment claims have hit a 26-year high. Calculated Risk brings the cool charts. Me, I'm taking the news straight up -- thanks to the morning note from High Frequency Economics' Ian Shepherdson: Jobless claims jumped 36K to 667K, a 26-year high and above the consensus 625K. Last week's claims were revised up 4K to 631K. The consensus forecast of a small dip in claims always looked like wishful thinking. The trend in claims is sharply upwards, reflecting the depth of the recession, and we see no reason for it to peak anytime soon. Indeed, adjusted for population growth claims are still well short of the peaks seen in the mid-70s and early 80s; to match them now would require the weekly numbers to breach the 1 million mark. We fervently hope that does not happen but we are not confident. Companies are throwing in the towel as they recognize that no sector is safe. On the back of these data we have to expect the rate of fall of payrolls to rise further; 750K monthly declines are looming. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 26 Feb 2009 | 2:04 pm GM posts massive loss, auditor may question viability (Reuters)
Source: Yahoo! News: Business | 26 Feb 2009 | 2:04 pm GM posts massive loss, auditor may question viabilityDETROIT (Reuters) - General Motors Corp posted a nearly $31 billion loss on Thursday for 2008 and said its auditors were likely to cast doubt on its ability its viability as it seeks an expanded federal...Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:04 pm RBS posts record loss as UK insures toxic assetsLONDON (Reuters) - Royal Bank of Scotland reported the biggest loss in British history on Thursday and said the government's stake could rise as high as 95 percent after it stumped up billions to insure risky bank assets.Source: Reuters: Business News | 26 Feb 2009 | 2:02 pm UPDATE 1-Private equity aims to appease with European code* Private equity body says non-compliance would be "penal"Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:01 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:01 pm NewsWatch: CORRECT: U.S. stock futures climb amid GM red inkU.S. stock futures advance, with the broader market looking past the limp demand that led to a $9.6 billion General Motor loss and the sixth straight fall in durable goods orders.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 2:00 pm JPMorgan sees home equity losses and 12,000 WaMu cutsNEW YORK (Reuters) - JPMorgan Chase & Co said it expects losses of $1 billion to $1.4 billion in each quarter of 2009 tied to its "non-credit-impaired" home equity loan portfolio.Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:00 pm JPMorgan sees home equity losses and 12,000 WaMu cutsNEW YORK (Reuters) - JPMorgan Chase & Co said it expects losses of $1 billion to $1.4 billion in each quarter of 2009 tied to its "non-credit-impaired" home equity loan portfolio.Source: Reuters: Business News | 26 Feb 2009 | 2:00 pm JPMorgan sees home equity losses and 12,000 WaMu cuts (Reuters)Reuters - JPMorgan Chase & Co said it expects losses of $1 billion to $1.4 billion in each quarter of 2009 tied to its "non-credit-impaired" home equity loan portfolio.Source: Yahoo! News: Business | 26 Feb 2009 | 2:00 pm Make Mom Proud, Eat and Grow Your VeggiesCreate Your Own Edible Treats for a Fruitful Spring and Summer MOORESVILLE, N.C., Feb. 26 /PRNewswire/ -- Nothing says home sweet home quite like a meal made from...Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:00 pm Beacon Equity Issues Technical Trade Alerts on Industry Leaders: ZLC, AGU, FSLR, STX, S, JAVADALLAS, Feb. 26 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...Source: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:00 pm Raytheon to Produce GPS-Related Advanced Anti-Jamming Antenna SystemHARLOW, U.K., Feb. 26, 2009 /PRNewswire/ -- A subsidiary of Raytheon Company (NYSE: RTN) has received a U.S. Air Force contract for initial production of the GPS Advanced DigitalSource: RSS feed - channel BNewsBusiness | 26 Feb 2009 | 2:00 pm Wall Street still looking to rallyStocks were set to rally at Thursday's open, but were off their peaks after a recent surge in jobless claims, which hit a 26-year high.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 1:58 pm Indications: CORRECT: U.S. stock futures climb amid GM red inkU.S. stock futures advance, with the broader market looking past the limp demand that led to a $9.6 billion General Motor loss and the sixth straight fall in durable goods orders.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 1:58 pm Dynegy shares fall on reduced 2009 outlookDynegy says Thursday it narrowed its fourth-quarter loss but its shares fall 11% in pre-market trades after it cut its 2009 profit outlook on lower commodity prices.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 1:58 pm Pandit Wiping Brow
Source: Dealbreaker | 26 Feb 2009 | 1:57 pm U.S. jobless claims up and continued claims at recordWASHINGTON (Reuters) - The number of U.S. workers continuing to claim jobless benefits notched a fresh record in the second week of February, Labor Department data showed on Thursday, while new claims for aid were the highest since 1982.Source: Reuters: Business News | 26 Feb 2009 | 1:56 pm Obama forecasts $1,750bn deficitBarack Obama's headline budget includes a $250bn item for future bailout funds which implies the White House could be planning to ask Congress for up to $1,000bn more in emergency funds for the banking sectorSource: Financial Times - US homepage | 26 Feb 2009 | 1:55 pm Ten ways to survive the recessionAdvice on how to protect your home pension and savings.Source: Telegraph Finance | 26 Feb 2009 | 1:53 pm House prices fall to April 2004 levels says NationwideHouse prices have fallen back to April 2004 levels slipping below £150000 for the first time in nearly five years according to Nationwide the country's largest building society.Source: Telegraph Finance | 26 Feb 2009 | 1:50 pm U.S. jobless claims up and continued claims at record (Reuters)Reuters - The number of U.S. workers continuing to claim jobless benefits notched a fresh record in the second week of February, Labor Department data showed on Thursday, while new claims for aid were the highest since 1982.Source: Yahoo! News: Business | 26 Feb 2009 | 1:47 pm Before the Bell: General Motors, Sears, UBS, RBS and more in the spotlightU.S. stock futures advanced Thursday as the week's see-saw moves looked set to continue, with traders looking past weak economic data and a $9.6 billion loss at General Motors.Source: MarketWatch.com - Top Stories | 26 Feb 2009 | 1:47 pm Jobs & Durables So Bad, A Possible Inflection Point?
The reading for January durable goods is another kick in the you know where. The headline number was -5.2%, about twice as bad as estimates from economists. The ex-transportation figure also came in at -2.5%, which is roughly in-line with estimates. But the December durable goods was revised far lower. The prior reading of -2.6% has now been revised to -4.6% on the headline durables, and revised from -3.6% to -5.5% on ex-transportation. The hope is that the market can start to stabilize or recover once we start to see a decline in the rate of change. Unfortunately, these are both escalating to the downside. About all we can hope for right now is that these economic numbers are getting so bad that this could be viewed by some as something similar to an inflection point. Otherwise it feels like the weatherman has given the forecast…. Pain today and for the foreseeable future. Jon C. Ogg       Source: 247 Wall Street | 26 Feb 2009 | 1:46 pm Trinity Mirror chief Sly Bailey's pay halves as group posts lossDaily Mirror owner cuts final dividend as advertising falls around 30pc in the first two months of the year.Source: Telegraph Finance | 26 Feb 2009 | 1:44 pm The budget: Back to brass tacksPresident Obama has sought to inspire Americans to view the current financial crisis as an opportunity to better the country. In past times of upheaval, he said in his address Tuesday night, the United States emerged with new industries, a better educated citizenry and an economy geared for growth.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 1:32 pm Cisco Layoffs & Executive Change (CSCO)
There is unfortunately a rather sad executive replacement. It isn’t because of performance or because of the economy. It is over an executive fighting cancer. Robert Lloyd, 52, has been named EVP of Worldwide Operations, with an effective date of April 26, 2009. Lloyd is replacing 59-year old Richard Justice. Justice is stepping down from the day-to-day responsibilities and the reason noted is because of an on-going battle with prostate cancer. Justice has been with the company for 12 years and he will remain on as a part-time executive advisor to Chairman and CEO John Chambers. Cisco stock is actually indicated up about 1.4% at $14.98 in the pre-market hours. This is still right at the bottom of a trading range of $14.20 to $27.72 over the last year. Jon C. Ogg       Source: 247 Wall Street | 26 Feb 2009 | 1:17 pm GM future in doubt after $31bn lossAmerica's largest carmaker reveals a full-year net loss of $30.9bn and says it expects its auditors to study whether there is 'substantial doubt' it could continue as a going concernSource: Financial Times - US homepage | 26 Feb 2009 | 1:14 pm Obama sees $1.75 trillion deficitRead full story for latest details.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 1:13 pm Aiding the Bottom 10%: A Recipe for Economic DeclineBy John Tamny RealClearMarkets It’s a rule-of-thumb among many well run U.S. companies that they must routinely make redundant the 5 to 10 percent of their least productive employees. One obvious reason for doing so is to keep costs down, but there are many other reasons unrelated to cost for doing so. For one, just as bad apples in sports tend to ruin chemistry such that total team performance declines, subpar performers in an office setting tend to worsen the performance of the most productive for wasting resources, all the while giving the productive an unworthy benchmark of success that allows them to become needlessly satisfied. To shed the least effective is to infuse a more competitive atmosphere among the survivors that aids the bottom line, plus the departed are a flashing signal to the survivors of their fate should they stop working hard.       Source: 247 Wall Street | 26 Feb 2009 | 1:11 pm Nasdaq OMX Group profit falls on special charges (AP)AP - Stock exchange operator Nasdaq OMX Group Inc. said Thursday its fourth-quarter profit plunged 53 percent primarily because of asset impairment charges and losses on foreign-currency contracts.Source: Yahoo! News: Stock Markets News | 26 Feb 2009 | 1:08 pm GM loses $9.6 billionGeneral Motors posted a $9.6 billion net loss in the fourth quarter, a period in which its sales plunged and it needed a federal bailout to avoid filing for bankruptcy.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 12:59 pm Short Sellers Active In Green Energy Stocks (CSIQ, CPST, CLNE, ENER, ESLR, FSLR, FCEL, SOLR, JASO, LDK, SFUN, SPWRA, STP)
Stock (Ticker) Feb. 13 Jan. 30 Change Jon C. Ogg       Source: 247 Wall Street | 26 Feb 2009 | 12:59 pm Opening Bell: 02.26.09
RBS also unveiled plans to cut 2.5 billion pounds ($3.56 billion) in costs as part of a restructuring plan which will see it exit or reduce its presence in 36 of the 54 countries it operates, which could see 20,000 job cuts." UBS appoints ex-Credit Suisse head as CEO (Reuters) Citi Closing On Deal With US Government (WSJ) "Citigroup Inc. is closing in on an agreement to boost the federal government's stake in the company to as much as 40%, according to people familiar with the situation. A deal could be announced as soon as Thursday." A Look At The Stress Test (WSJ) "Economists said most of the nation's largest banks will likely have to raise capital under the economic assumptions that regulators plan to use. The stress test assumes an unemployment rate averaging 8.9% in 2009 and 10.3% in 2010. Because that is an average for a whole year, the test envisions the jobless rate reaching higher than those levels on a monthly basis during these stretches. It was 7.6% in January" Government To Step It Up In Student Loans (NYT) Geithner Blames Bankers For Loss Of Confidence (CNBC) Liddy Pleads For Forgiveness As AIG Unravels (Bloomberg)
Source: Dealbreaker | 26 Feb 2009 | 12:55 pm Intel: 'Green' requires cheap computingSource: Business and financial news - CNNMoney.com | 26 Feb 2009 | 12:54 pm Scoring your dream retirementQuestion: I'm 25 and currently contribute 8% of my salary to my 401(k) since that percentage assures I get the full employer match. But since stocks are so cheap right now, I'm considering bumping up my contribution for a few months. I won't miss the extra amount coming out of my paycheck, so do you think I should go through with this plan? --Mike, Houston, TexasSource: Business and financial news - CNNMoney.com | 26 Feb 2009 | 12:41 pm Yahoo open to selling searchRead full story for latest details.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 12:38 pm Intel chief bullish on netbooksRead full story for latest details.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 12:38 pm Trouble on the upgrade pathFasten your seat belts. There could be some bumpy nights ahead in the IT department.Source: Business and financial news - CNNMoney.com | 26 Feb 2009 | 12:38 pm RBS taps UK Treasury for £25.5bnThe beleaguered bank, already nearly 70% state-owned, is raising another £13bn of equity capital from the Treasury as part of the UK government's asset protection schemeSource: Financial Times - US homepage | 26 Feb 2009 | 12:37 pm Taxpayers face owning 90pc of RBS after £25bn capital injectionTaxpayers' ownership of Royal Bank of Scotland could increase to over 90pc as the bank will take a further capital injection from the Government of up to £25.5bn.Source: Telegraph Finance | 26 Feb 2009 | 12:34 pm Sears results top estimates, more stores to closeATLANTA (Reuters) - Retailer Sears Holdings Corp posted stronger-than-expected quarterly results on Thursday as it cut costs during the recession, and said it was closing 24 additional stores.Source: Reuters: Business News | 26 Feb 2009 | 12:33 pm Sears results top estimates, more stores to close (Reuters)Reuters - Retailer Sears Holdings Corp posted stronger-than-expected quarterly results on Thursday as it cut costs during the recession, and said it was closing 24 additional stores.Source: Yahoo! News: Business | 26 Feb 2009 | 12:33 pm European stocks higher on banks insurance scheme (AP)
Source: Yahoo! News: Stock Markets News | 26 Feb 2009 | 12:31 pm GM (GM): The Silver Lining Is Global Market Share
For the full year, revenue fell from $180 million last year to $149 in the most recent period. The fourth quarter 2008 results reflect special items totaling $3.7 billion While GM North American lost $8.8 billion in Q4 2008, and posted red ink in all of the other regions that it includes in its financials, the company held onto it 9% plus market share in Europe and held its 7% plus market share in Asia. The drops in US and Latin America, market share were modest. GM’s share of the American light vehicle market was down from 22.7% in 2007 to 21% in 2008. The figures should tell the Administration a great deal. The problems with GM can be identified as debt and labor costs. But, in terms of acceptance of the company’s products, the largest US car company is not collapsing. That is a clear sign that as the global economy recovers, GM has every opportunity to move back to profitability if it can make it through the recession with a restructured business and financial aid. GM is not dead. It is just on the critical list. Tagged: GM      Source: 247 Wall Street | 26 Feb 2009 | 12:27 pm Trinity Mirror sinks into red with £73m lossNewspaper publisher Trinity Mirror has crashed into the red due to plummeting advertising and circulation revenues.Source: Latest Business News from Times Online | 26 Feb 2009 | 12:26 pm RBS by numbers: record £24bn loss £25bn from the taxpayer 20000 jobs under threatRBS has posted the UK's biggest corporate loss at £24bn and received a further £25bn from the taxpayer. Here are more staggering numbers that reveal the bank's woes.Source: Telegraph Finance | 26 Feb 2009 | 12:24 pm Bank charges: How to reclaim your moneyThe Telegraph's guide to reclaiming your money which includes template letters you can download customise and send to your current account provider.Source: Telegraph Finance | 26 Feb 2009 | 12:21 pm Thinking inside the box for lunchI thought Graham Bosher 27 was nuts when he told me about his latest venture. Graze.com claims to be the country's first mail order fresh fruit and dried nuts vendor.Source: Telegraph Finance | 26 Feb 2009 | 12:14 pm Early Bird Analyst Upgrades & Downgrades (CBY, CNP, DLTR, PHG, SFD, AGU, AIB, AAUK, IRE, CETV)
Cadbury (CBY) Raised to Buy at Jefferies. Jon C. Ogg       Source: 247 Wall Street | 26 Feb 2009 | 12:10 pm Review: Webroot Internet Security EssentialsSource: Telegraph Finance | 26 Feb 2009 | 12:02 pm Grübel takes over as chief at UBSThe struggling Swiss banking group has surprised investors with the naming of Oswald Grübel, former head of arch rival Credit Suisse, as its new chief executive in an attempt to regain credibilitySource: Financial Times - US homepage | 26 Feb 2009 | 12:00 pm European equities rally despite record RBS bank loss (AFP)
Source: Yahoo! News: Stock Markets News | 26 Feb 2009 | 11:56 am New code for banks under Government asset schemeBanks wanting to insure their toxic debt with the State will have to bring their policies on pay and perks in line with a stringent code, it emerged today, as the Government released fresh details of its desperate efforts to kickstart lending.Source: Latest Business News from Times Online | 26 Feb 2009 | 11:52 am Cheering Otherwise Bad News At Sears (SHLD)
Sears has also been deleveraging its books. It reduced the total short-term borrowings on its $4 billion revolving credit facility from $1.9 billion at November 1, 2008 to $435 million as of January 31, 2009. Eddie Lampert also repurchased some 2.9 million shares for right at $120 million and repurchased debt securities for $29 million. These helped to take down the cash balances to roughly $1.3 billion from $1.6 billion a year ago, although the company’s total debt was listed as $2.9 billion rather than $3.0 billion a year ago. Here is where this gets interesting though. Sears has proven in 2007 and most of 2008 to have metrics that were much worse than most of its competitors. But when you start digging through the numbers on a comparable basis, it really looks like Sears overall business held up better than at many peers. That wasn’t true on the big box level, but compared to the department store numbers it is true. Sometimes bad news can be viewed as good news. In today’s market, it is all relative. It is too early to have any real trading indications. Shares closed Wednesday at $35.83, and the 52-week trading range is $26.80 to $112.80. Jon C. Ogg       Source: 247 Wall Street | 26 Feb 2009 | 11:44 am Bank charges appeal is thrown outThousands of savers came a step closer to finding out if they will be able to reclaim up to a billion pounds of unauthorised overdraft fees, after Britain's biggest banks lost an appeal today at the High Court.Source: Latest Business News from Times Online | 26 Feb 2009 | 11:23 am Warning People About Prescription Drugs
It may be that the FDA has not been telling patients everything it knows, or has been too circumspect in its disclosures. According to The New York Times, “researchers at the Dartmouth Medical School are urging federal regulators to adopt a … concept — numerical tables that quantify the benefits of taking a drug compared with a placebo, and that list the odds of having side effects.” And, all along people thought that the FDA and their doctors were aware of all the medical risks of every drug on the market and would always be obligated to pass those on to their patients. Even the suggestion of such a “disclosure” program speaks volumes about how poor a job the FDA has done in protecting the interests of people who need drugs and medical devices to cure diseases or have better lives. As it turns out, that was not entirely true. A patient who is not willing to read a label with the pluses and minuses of a treatment gets to play Russian roulette with his physician. Douglas A. McIntyre       Source: 247 Wall Street | 26 Feb 2009 | 11:22 am Liberty looks to raise £350mLiberty International, the UK’s biggest shopping mall owner, is considering a rights issue as retail insolvencies and declining property values hit revenues.Source: Latest Business News from Times Online | 26 Feb 2009 | 11:20 am King attacks Labour over credit spreeThe Governor of the Bank of England said that the country was so deep in debt before the financial crisis that it is making recovery more difficult.Source: Latest Business News from Times Online | 26 Feb 2009 | 11:12 am Letting The Government Own More Of AIG (AIG)
According to Reuters, ”under consideration is a plan that would allow the U.S. to take stakes in AIG assets like Alico and AIA, and either spin them off or sell them later if the current auctions fail.” If the auctions fail, then the assets are more attractive? Certainly not, which means that the government’s wish to own them should only decrease. There is some theory, probably a misconception, that it is easier for buyers to takeover parts of AIG if they are already separated from the parent. Since AIG has been shopping most of its divisions around the world for months, it is difficult to see the sense in that argument. The government is stuck with AIG. If it fails, a number of financial firms around the world that do business with the big insurance company could be faced with billions of dollars in losses. The US is not willing to have that happen, so it keeps AIG on life support. Creating a dozen little AIGs will not resolve that problem. Douglas A. McIntyre Tagged: AIG      Source: 247 Wall Street | 26 Feb 2009 | 11:05 am RBS reports record corporate lossRoyal Bank of Scotland reports a loss of £24.1bn, a UK record, blaming "unprecedented turbulence" in world markets.Source: BBC News | Business | World Edition | 26 Feb 2009 | 11:03 am Sell-off 'to save postal service'Lord Mandelson publishes controversial plans to sell-off part of Royal Mail which he says will save a universal postal service.Source: BBC News | Business | World Edition | 26 Feb 2009 | 10:57 am Ranbaxy shares plunge on US safety concernsSerious safety concerns have been raised over India’s generic drugs industry after US regulators said that they would no longer approve products produced at a factory run by the country’s largest maker of medicines.Source: Latest Business News from Times Online | 26 Feb 2009 | 10:47 am RWE raises mid-term earnings targetRWE, Germany's second biggest utility, on Thursday raised its mid-term earnings target, helping to allay fears that a slump in power demand and prices could affect future profitability.It expects operating...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 10:34 am Dip in profit masks growth at TelefnicaTelefnica on Thursday reported a 15 per cent year-on-year drop in profits for 2008, as one-off items and currency movements masked a solid underlying performance at the Spanish telecommunications group...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 10:33 am Dresdner gloom drags down AllianzGerman insurer Allianz says it made a larger than expected loss in 2008, due to write-downs from the sale of Dresdner Bank.Source: BBC News | Business | World Edition | 26 Feb 2009 | 10:18 am Tata Motors says its $2,000 Nano car will launch in MarchIndia's Tata Motors says its Nano, billed to be the cheapest car in the world, will be launched next month.Source: BBC News | Business | World Edition | 26 Feb 2009 | 10:03 am Global stocks rise; UK unveils new bank aid (Reuters)
Source: Yahoo! News: Stock Markets News | 26 Feb 2009 | 10:01 am Chemical bother prompts BASF lossBASF reports a larger-than-expected fourth-quarter loss, blaming the figures on slowing demand from the car and construction industries.Source: BBC News | Business | World Edition | 26 Feb 2009 | 9:50 am Asset protection scheme boosts banksBanks lit up the FTSE 100 on Thursday, as government plans to help free up funds for lending were well received. The scheme was unveiled as Royal Bank of Scotland detailed the full extent of the toll taken...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 9:49 am RBS taps Treasury for further 25.5bnRoyal Bank of Scotland, already nearly 70 per cent state-owned, revealed on Thursday that the government has agreed to inject up to 25.5bn of additional capital into the beleaguered bank as it reported...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 9:40 am AIG mulls further government stakes as auction deadline loomsHONG KONG/NEW YORK (Reuters) - Beleaguered U.S. insurance giant American International Group may allow the U.S. government to take control of certain assets should the sale of stakes in various units fail to produce attractive offers, according to a source close to the matter.Source: Reuters: Business News | 26 Feb 2009 | 9:39 am Profits down 34% at British GasBritish Gas's profits fell 34% last year to £379m because of higher wholesale gas prices, its owner Centrica says.Source: BBC News | Business | World Edition | 26 Feb 2009 | 9:01 am Grbel takes over as chief at UBSUBS, the struggling Swiss banking group, astonished investors on Thursday with the appointment of Oswald Grbel as its new chief executive, in an attempt to regain credibility.Mr Grbel, who until around...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 8:43 am Dresdner lost 3bn in the fourth quarterMUNICH, Feb 26 (Reuters) - The extent of problems at Dresdner Bank became clear on Thursday as it pulled former parent Allianz into a worse-than-expected loss in 2008, its first in six years. Europe's...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 8:41 am British Gas falls 34% despite record pricesBritish Gas profits fell 34 per cent to £379 million last year as Centrica, its owner, passed on only part of rising energy costs to consumers.Source: Latest Business News from Times Online | 26 Feb 2009 | 8:32 am UBS turns to ex-Credit Suisse head GruebelUBS, the troubled Swiss bank, has appointed Oswald Gruebel, a former head of arch rival Credit Suisse, as its new chief executive.Source: Latest Business News from Times Online | 26 Feb 2009 | 8:17 am Offer to reassess home raises red flagOne firm is charging $179 upfront for filing a request for a review that's free through L.A. County. If you're...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 8:00 am Tribune Co. suspends efforts to sell Los Angeles Times building, Tribune Tower in ChicagoWith U.S. commercial real estate sales at a near-standstill, Tribune Co. is suspending efforts to sell its namesake tower in Chicago and the downtown Los Angeles headquarters of The Times, the company...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 8:00 am Mortgage relief via the courtsThe House is expected to back legislation enabling bankruptcy judges to reduce loan balances. Lenders object, but economists say reducing mortgage debt is a key to an economic recovery. ...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 8:00 am Jay Leno hauled before Writers Guild trial committeeThe late-night host is accused of having violated union rules when he penned his own monologues during a 100-day work stoppage that ended in early 2008. Leno says he's done nothing wrong. ...Source: RSS feed - channel BNPaperBusiness | 26 Feb 2009 | 8:00 am UBS appoints new chief executiveSwiss banking giant UBS appoints the former head of Credit Suisse, Oswald Gruebel, as its new chief executive.Source: BBC News | Business | World Edition | 26 Feb 2009 | 7:56 am RSA cuts 1,200 jobs as profit rises 13%RSA, the UK's largest commercial insurer, revealed plans to cut 1,200 jobs in the UK by the middle of next year today as it aims to slash its cost base by £70 million.Source: Latest Business News from Times Online | 26 Feb 2009 | 7:51 am Dexia loss higher than expectedFinance group Dexia reports higher-than-expected losses after cutting the value of its US mortgage-backed securities.Source: BBC News | Business | World Edition | 26 Feb 2009 | 7:44 am House prices fall a record 18% for yearHouse prices tracked by Nationwide, the UK's largest building society, fell by 1.8 per cent in February, and 17.6 per cent since the same time last year, figures published this morning show. The mortgage lender said that the average cost of a UK home is now £147,746, and indicated that the UK housing market has still further to fall.Source: Latest Business News from Times Online | 26 Feb 2009 | 7:43 am Aussie dollar closes weakerThe Australian dollar closed weaker as poor European economic growth data outweighed the effect of surprisingly strong local capital expenditure statistics on market sentiment. At 1700 AEDT, the Australian dollar was trading at...Source: New Zealand Herald - Business | 26 Feb 2009 | 7:35 am Deutsche Post says UPS talks still onFRANKFURT (Reuters) - Deutsche Post said it was still in talks over a possible cooperation with United Parcel Service , providing a sought-for update on its drawn-out negotiations.Source: Reuters: Business News | 26 Feb 2009 | 7:18 am Aust sharemarket gaining momentumPERTH - The Australian share market closed modestly stronger thanks to gains in the financial, energy and industrial sectors. The benchmark S&P/ASX200 index was up 18 points, or 0.54 per cent, at 3,345.5, while the broader...Source: New Zealand Herald - Business | 26 Feb 2009 | 7:02 am NZ sharemarket flatThe New Zealand share market was flat today even though it had a huge amount of information to absorb and trade on. The benchmark NZSX-50 index closed down 2.387 points, or 0.095 per cent, at 2497.433, having rebounded off...Source: New Zealand Herald - Business | 26 Feb 2009 | 6:18 am NZ dollar falls, trades around US51cThe New Zealand dollar spent the day trading around the US51c figure after falling a cent against the United States dollar overnight as the greenback strengthened on its appeal as a safe haven. The NZ dollar was US51.15c at 5pm,...Source: New Zealand Herald - Business | 26 Feb 2009 | 5:31 am Kiwibank wins as other banks back out of marketA strong half year by Kiwibank is being attributed in large part to gains made as other banks backed out of the market. The subsidiary of state-owned enterprise New Zealand Post today reported a 13.7 per cent rise in net profit...Source: New Zealand Herald - Business | 26 Feb 2009 | 5:07 am Call for Stanford 'land seizure'The government of Antigua and Barbuda calls for the takeover of land and assets owned by Sir Allen Stanford.Source: BBC News | Business | World Edition | 26 Feb 2009 | 4:52 am Fairfax looking to raise $321m in equity - reportFairfax Media, which is currently in a share trading halt, is considering raising up to A$250 ($321.95 million) under an equity offer, a report says. The Australian newspaper website says it understands investment banks UBS and...Source: New Zealand Herald - Business | 26 Feb 2009 | 3:40 am Saks to end discounts of prestige brandsThe troubled US luxury retailer forecasts further falls in sales and a shift to a lower-priced mix of products after a gloomy festive seasonSource: Financial Times - US homepage | 26 Feb 2009 | 2:33 am Air New Zealand profits fall nearly 80pcProfits have fallen dramatically at Air NZ, as the number of passengers flown on the national carrier fell in the last half year. Net profit after tax was $24 million, down 79 per cent for the six months to the end of December...Source: New Zealand Herald - Business | 26 Feb 2009 | 1:30 am PGG Wrightson gets bank support after $32.8m lossBig rural services company PGG Wrightson has today posted a loss of $32.8 million for the six months to December, down from the $34.6 million recorded in the same period last year. Profits at the company have been hit by a series...Source: New Zealand Herald - Business | 26 Feb 2009 | 1:00 am After The Close - WednesdayEL PASO (EP), a natural gas producer, said it expects '09 EPS of 85 cents to $1.05, below views of $1.11. It fell 2.5%.Source: Investor's Business Daily: BUSINESS | 26 Feb 2009 | 12:31 am Trends & Innovations - WednesdayDesert city goes for zero emissionsSource: Investor's Business Daily: BUSINESS | 26 Feb 2009 | 12:31 am Medical Products Firm Uses Cow Tissue To Repair Internal OrgansRichard Kramp was hired in 2004 to resuscitate Synovis Life Technologies' ailing interventional business. But four years later, the chief...Source: Investor's Business Daily: BUSINESS | 26 Feb 2009 | 12:31 am Business Briefs - WednesdayTJX beats, raises Q1 guidance. The operator of T.J. Maxx and Marshalls surged 7.3% to 23.12 after it said its Q4 EPS dipped 14% to 55 cents ex...Source: Investor's Business Daily: BUSINESS | 26 Feb 2009 | 12:31 am Powerco sales goes through, now 58pcBabcock and Brown Infrastructure (BBI) said the sale of a larger than previously announced stake in Powerco will go through today. The distressed Australian infrastructure investor signalled this week that there "were issues" in...Source: New Zealand Herald - Business | 26 Feb 2009 | 12:30 am 'Alarming' book-keeping reported at Belgrave FinanceReceiver Korda Mentha says it has uncovered 'alarmingly' poor lending standards and book-keeping in Belgrave Finance's loan book and has referred matters around related party lending to authorities for further investigation. Korda...Source: New Zealand Herald - Business | 26 Feb 2009 | 12:00 am AIG considers break-up in bid to stay afloatAIG and the US authorities are in advanced discussions over a radical restructuring that would split the stricken insurer into at least three government-controlled divisions in an attempt to keep it afloat, according to people close to the situationSource: Financial Times - US homepage | 25 Feb 2009 | 11:42 pm SEC's civil lawsuit still awaits Nacchio (AP)AP - A court ruling Wednesday reinstating the insider-trading conviction of Joe Nacchio doesn't end the former Qwest chief executive officer's legal battles.Source: Yahoo! News: Stock Markets News | 25 Feb 2009 | 11:02 pm How the Dow Jones industrials fared Wednesday (AP)
Source: Yahoo! News: Stock Markets News | 25 Feb 2009 | 10:48 pm How the Dow Jones industrials fared Wednesday (AP)
Source: Yahoo! News: Business | 25 Feb 2009 | 10:48 pm Obama plans clear financial rulesThe US president intends to lay down clear rules to "protect consumers and investors", but banks get access to more cash.Source: BBC News | Business | World Edition | 25 Feb 2009 | 10:46 pm Mortgage applications decline as refinancing eases (AP)
Source: Yahoo! News: Business | 25 Feb 2009 | 10:41 pm Write-Offs: 02.25.09$$$ Luxembourg attacks UBS over Madoff fund [FT] $$$ "When guys lose jobs, the TV, den and gym win. Women? Sex? Not so much." [Newsweek] $$$ Stop TARP banks from spending on lollipops [The Deal]
Source: Dealbreaker | 25 Feb 2009 | 10:30 pm Hear: Geithner's Stress Test
U.S. Treasury Secretary Tim Geithner. Win McNamee/Getty Images On today's Planet Money: If any single human being stands at the center of the global economic crisis, it's U.S. Treasury Secretary Tim Geithner. This afternoon, Geithner took his hands off the intricate machinery long enough for an interview with Adam Davidson. As you'll hear in the podcast, the pairing of titan and reporter made for quite a dance. Bonus: Producer Katia Dunn describes the scene in Geithner's office, where an aide helped to keep the Treasury secretary on message. Download the podcast; or subscribe. Intro music: Franz Ferdinand's "40'." Find us: Twitter/ Facebook/ Flickr » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 10:30 pm All About The BaselineThe U.S. government has released more information about the stress tests it'll be preforming on the banking system in the coming weeks. The tests will measure a bank's situation against a pair of economic scenarios for the end of 2010 -- "baseline" and "more adverse" -- to see whether it can survive. In the baseline scenario, the economy is growing at 2.1 percent, unemployment's at 8.8 percent, and housing prices have fallen 4 percent from the end of 2009. In the adverse scenario, those numbers are .5, 10.3 and -7. Which brings us to Simon Johnson, of Baseline Scenario. Johnson writes that the government's plan allows regulators to know the outcome of the stress tests already -- unless, somehow, its projections don't pan out. Johnson asks: How exactly do we get growth over 2 percent in 2010 (and after)? The global economy is getting worse, consumer and business confidence is weak everywhere (tell me if you know different). There is no sign of housing turning around, consumers are cutting back, and large organizations are all planning to trim costs for the next financial year. Our policy response so far: moderate fiscal stimulus, underfunded housing policy, and small potatoes for the banking system. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 25 Feb 2009 | 10:25 pm EU trio targets tougher Iran sanctionsFrance, Germany and the UK are proposing a tough list of additional sanctions to be imposed against Iran in order to give the Obama administration more muscle in its expected engagement of the Islamic republicSource: Financial Times - US homepage | 25 Feb 2009 | 10:17 pm Mark To BernankeIf you dozed off for just a second, you missed it. Federal Reserve Chairman Ben S. Bernanke said accounting standard-setters need to figure out how the mark-to-market rule blamed for worsening the global financial crisis should be followed when assets aren't readily traded. Yes, indeed. If numbers aren't looking like what we want, we'll just make up some numbers and call it all good. Perfect! Tim Geithner was seen to nod vigorously from the Green Room where he watched today's testimony, until an aide whispered to him that Ben wasn't talking about tax returns. Bernanke Says Mark-to-Market Accounting Rule Should Be Improved [Bloomberg]
Source: Dealbreaker | 25 Feb 2009 | 9:53 pm Goodfriend Sees Fiscal, Not Monetary Stimulus From ObamaSource: Bloomberg - All Podcasts | 25 Feb 2009 | 9:22 pm You'll See....You'll All See.
Bank of America Corp. Chief Executive Officer Kenneth Lewis said Merrill Lynch & Co. and Countrywide Financial Corp., the two acquisitions that some analysts say helped push down the bank's share price, have been "stars" so far this year.
Source: Dealbreaker | 25 Feb 2009 | 9:14 pm Tax Tip of the Week: Shift Income to Your Kids
What do wealthy parents know that you don’t? For starters, they’re well aware that children’s investment income is often taxed at a much lower rate than their parents’. This can include interest, dividends, capital gains and other unearned income. By gifting income-producing assets to children, the income avoids tax or reduces the amount owed. What are the Rules? Children who have investment income up to $1800 and meet at least one of three age requirements for 2008 will be taxed at the lower rate.
In other words, your child at home or your older student child whom you support can report investment income on his or her own return instead of yours. (Of course you will be the one doing all this!) It’s really important to consult with a tax professional on this kind of decision because if you’re gifting assets that may affect eligibility for financial aid for college someday. Paying Wages to Your Kids Another way to shift income among family members is to pay children to do business related activities. The business deducts the wages and the child claims the income, which is taxed at his or her (lower) tax rate. The standard deduction for earned income is much greater than for unearned, investment income. Just make sure if you’re going to do this you keep records such as timesheets and the description of work. The IRS will not look kindly upon the taxpayer who tries to pass her toddler off as a receptionist! Everyone’s situation is different, but just remember that every little bit helps. Every dollar of income you shift comes right off the top tier - the highest rate of income tax you pay. Source: Business Pundit | 25 Feb 2009 | 9:03 pm Are You Bitches Happy With This Bitch?You can't swing a former BSD these days without hearing about how "the markets" got their "hopes up" about what was going to come out of the government and once the Treasury/White House/Fed opened its collective trap the apparently overly sensitive "markets" got their rainbow and pony hopes dashed to the wind and boo hoo, watch as we cry about it. Today one crucial aspect of the gov's plan has been revealed, and with T-15 minutes to go til the close, let's see if it lived up to all your dreams, or if you've been once again disappointed and are going to proceed to act out and throw a temper tantrum over it. Details of the big reveal after the jump.
Source: Dealbreaker | 25 Feb 2009 | 8:45 pm Luxembourg attacks UBS over Madoff fundSwiss bank accused of 'serious failure' by Luxembourg's financial regulator over its custodianship of a $1.4bn fund that funnelled money into Bernard Madoff's alleged $50bn "Ponzi" schemeSource: Financial Times - US homepage | 25 Feb 2009 | 8:37 pm Presented By:Source: Dealbreaker | 25 Feb 2009 | 8:32 pm The Lines Were ShorterYou know, we had our ticket ready to go, especially after we saw the big lines in Antigua. We figured we had to hurry. We had the sunblock and the bulletproof vest packed. Unfortunately, it looks like our preparations were all for nothing. Now that we think about it, how is Allen Stanford going to flee to Venezuela when he's (potentially) screwed them out of $2.5 billion? That wasn't so sharp, Sir Allen. Venezuela is unlikely to help investors faced with the loss of billions of dollars deposited at the discredited Stanford International Bank, Finance Minister Ali Rodriguez said on Wednesday. Venezuela says no plans to help Stanford investors [Reuters]
Source: Dealbreaker | 25 Feb 2009 | 8:32 pm Cuomo, Goodwin, Holzer, Beschloss, McPherson Discuss LincolnSource: Bloomberg - All Podcasts | 25 Feb 2009 | 8:24 pm Damn You, Frank. Damn You To Hell.You (et al) had to stick your nose(s) in the Northern Trust trough, didn't you, you meddling bastard(s)? Now you've gone and scared Morgan Stanley off, a firm which, you should be reminded, canceled Christmas this year. And now, because it's apparently a crime to kick back and whack a few, this. I hope you realize John Mack's going to have to bring in a boatload of Sicilian pastry desserts to make this up to the team.
Source: Dealbreaker | 25 Feb 2009 | 8:15 pm Agrium steps up fertiliser fight with CF bidAgrium, the Canadian fertiliser and crop protection group, made an unsolicited offer to buy rival CF Industries for US$3.6bn in cash and stockSource: Financial Times - US homepage | 25 Feb 2009 | 8:11 pm Now Before I Begin The LessonNow I realize that it seems difficult to follow the complex financial machinations that we are performing to pretend we aren't nationalizing anyone's bank but I do wish you'd listen Ken, it's perfectly simple, if you're not giving your bondholders a hair cut, you don't have to put your executive's bonuses down on the lower peg, you just collect the treasury bills before you do your Congressional hearing prep after a taxpayer approved lunch at McDonalds when you've written your resignation letter before the shareholders meeting, move your own bonus down a peg, greet the auditors and report to Mr. Geithner before lunch that you've got your preferred shares dividend payment and of course your conversion to common documents. The Treasury Department on Wednesday launched a new program that would provide capital injections into the nation's 19 largest banks based on a "stress test." According to the "stress test" approach, government regulators are looking at each financial institution's balance sheets and capital needs over the next two years and evaluating how much capital the company will need over that period. Based on that analysis the government would let institutions exchange taxpayer-funded preferred shares for common shares when losses that were forecast by the stress test actually occur. Treasury: New bank infusion can convert to common equity [Marketwatch]
Source: Dealbreaker | 25 Feb 2009 | 7:22 pm Grant Sees `Opportunity' in Mortgage-Backed SecuritiesSource: Bloomberg - All Podcasts | 25 Feb 2009 | 7:00 pm Stimulus enables green to growFunding for renewable energy projects was drying up until the stimulus package was passed. The federal infusion comes none too soon, but it's only a start. Sam Eaton reports.Source: Marketplace | 25 Feb 2009 | 6:57 pm Banks learning to restrain themselvesTARP recipient Northern Trust is feeling the heat from Congress for spending lavishly on a golf tournament. As Jeremy Hobson reports, it's just the latest example of the financial industry figuring out what's OK and what's not.Source: Marketplace | 25 Feb 2009 | 6:47 pm Newspapers search for business modelThe recession has only exacerbated the problems facing the newspaper industry. Veteran journalist David Westphal talks to Kai Ryssdal about what the industry is doing to meet the challenges it faces.Source: Marketplace | 25 Feb 2009 | 6:47 pm Bill could change the way unions formThe Employee Free Choice Act would make it easier for workers to form unions by barring managers from firing or intimidating them. Employers are trying to stop it from becoming law. John Dimsdale reports.Source: Marketplace | 25 Feb 2009 | 6:47 pm Reducing ratio of debt is the real issuePresident Obama wants to cut the current deficit in half by the end of his first term. Commentator Robert Reich says what Obama should really be focusing on is reducing the ratio of debt to the national economy.Source: Marketplace | 25 Feb 2009 | 6:47 pm It's a good time to be a lobbyistWith the federal government rapidly increasing spending and getting more involved in the private sector, business for Washington lobbyists is booming. Ronni Radbill reports.Source: Marketplace | 25 Feb 2009 | 6:47 pm How many bank regulators is too many?President Obama wants to clean up the regulation of banks. As Steve Henn reports, the president might want to start out by streamlining the entire system.Source: Marketplace | 25 Feb 2009 | 6:45 pm Will new tax credit spur home sales?The Obama administration is hoping to jolt the housing market by promoting a new, $8,000 tax credit for first-time home buyers. Is it enough to get home sales moving again? Janet Babin reports.Source: Marketplace | 25 Feb 2009 | 6:44 pm Talking To Geithner
The one in the middle. Chris Kleponis/AFP/Getty Images U.S. Treasury Secretary Tim Geithner's due on the line any minute now, for an interview with Adam Davidson (who'll be fueled by a last-minute dose of fruit salad). We'll break out a key part of it here, then post the full conversation for this afternoon's podcast. UPDATE: First thought: The secretary said nationalization of the banks would be the wrong approach, but he would not say the word "nationalization." Geithner talked about that "broad strategy" and what was and was not the "right strategy." But he never said "nationalization." Example: "Adam, that's not the right strategy for the country, for basic, practical reasons that our system will be stronger if it remains in private hands with support from the government to make sure those institutions can play their critical role." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 6:37 pm Spansion Cuts Jobs, Pays ExecsJoe sends this news, "Spansion ends executive pay cuts as it lays off workers." The maker of flash memory chips is putting the ax to 3,000 positions. It has dialed back executive pay by 10 percent in October. In a statement, the company said: "The remaining members of Spansion's management team are more critical than ever to leading the company through a difficult period so that we can preserve the value of the enterprise and create new jobs in the future." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 6:16 pm FTSE closes slightly up (AFP)
Source: Yahoo! News: Stock Markets News | 25 Feb 2009 | 6:06 pm FT's Wolf Says U.S. Administration Is Not Bold EnoughSource: Bloomberg - All Podcasts | 25 Feb 2009 | 5:43 pm Johnson Says States Face $350 Billion ShortfallSource: Bloomberg - All Podcasts | 25 Feb 2009 | 5:39 pm Japan's Shocking NumberIn his "Daily Notes on the Global Economy," Carl B. Weinberg of High Frequency Economics notes Japan's drop in exports last month -- down 45.7 percent from the previous January. The bold and italics are his: We have never seen anything like this in a major developed market economy. Weinberg goes on to write that without a quick turnaround, half the Japanese jobs involved in making goods for export are at risk. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 5:07 pm In The Land Of FranceI'm just catching up to this link from @tyoungs: "France to take controlling stake in merged bank." Politicians in France generally do not find it difficult to say the word nationalization." So as two French banks struggle to weather the financial turbulence, Paris has decided to accelerate their merger, take a controlling stake in the combined company and install a management team of its own. Quite a contrast to the scene on Capitol Hill yesterday, with Fed chairman Ben Bernanke and lawmakers doing the nationalization dance. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 4:41 pm Sign Of The ApocalypseOur friend Ian Chillag sent this bit about tanking stock prices. You can now buy a share of the New York Times for less than it costs to pick up the Sunday edition. Back in the day, shares went for $24.27. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 4:32 pm Munster Says Jobs's Health Is Focus of Shareholders' MeetingSource: Bloomberg - All Podcasts | 25 Feb 2009 | 4:27 pm Wittner Sees Retail Gasoline at $2.25 a Gallon by End of 2009Source: Bloomberg - All Podcasts | 25 Feb 2009 | 4:17 pm Williams Says Financial Stability Is `Key' for ObamaSource: Bloomberg - All Podcasts | 25 Feb 2009 | 4:14 pm Vontobel's Nigg Says Stock Market Bottom Too Soon to CallSource: Bloomberg - All Podcasts | 25 Feb 2009 | 4:12 pm 8 Dumb & Expensive Plastic Surgery ProceduresAfter reading about plastic surgery for the dead, we decided to remind everyone that there are a million good ways to spend $5,000. The dumb and expensive procedures below are not among them: Warning: Post contains mature content 8. Calf implants
If the calf raise at the gym doesn’t work, you can always get silicon implants on the backs of your legs. 7. Pec implants
If the bench press doesn’t do the trick, the ‘roids will. If those fail, it’s time to go under the knife and procure a set of man-sized silicone implants. http://www.bodynew.com/procs/body/pectoralImplants/ strong>6. Botox in the balls of the feet
Walking around in high heels can hurt, but plastic surgery has found a solution. Injecting numbing Botox into the balls of the feet is purported to protect and numb tissue there so that women can walk around in high heels longer and with less pain. 5. Buttock contouring
If long hours at the office have left your rump looking more like something from IHOP than InTouch, fret not. Your friendly neighborhood plastic surgeon can save you hours at the gym through a little artistic restructuring. Don’t forget the doughnut pillow on your way out. 4. Hymen restoration
It didn’t work out as planned the first time, but so what? Now, you can try again, with the help of anaesthesia, a knife, and your $5,000 born-again virginity. 3. Widening and lengthening the main attribute
It’s less work than the Swedish method, though temporarily more painful. Best left for porn stars and men who really need it. 2. Facial implants
The picture above says it all. 1. Plastic surgery after you die
Undertakers are now offering a postmortem option to Botox the wrinkles out of dead peoples’ eyes, lips, and cheeks. You can be dead and gone, but still look good. You know the plastic surgery is successful when people shake their heads and remark how young you died. Source: Business Pundit | 25 Feb 2009 | 4:06 pm A Great Deal In DetroitJason sends us this bit of good news from Detroit: About a month ago you were asking to here from folks that were doing well in this down economy. My wife and I are two of those people. I am currently working at a solar panel manufacturer, and my wife is an elementary school teacher. I was excited to hear Obama's plan roll out last night, as it distinctly called out progression in solar panel manufacturing and incentives for teachers who perform. We have had a great year this past 2008. We sold our house which was getting too small for our family (although we took a loss on it), and found a GREAT deal on a brand new foreclosed home. I moved into the solar sector from the automotive sector, and learned a few months after I left my old company that they have been making major cuts in in the salary ranks. My job would have been in jeopardy. I have started to invest in stocks which are at bargain levels, to help secure my retirement down the road. We feel more secure now in our lives then when the economy was booming. Things just seem much more affordable now. I can fill my Saturn VUE for 25.00 instead of 50.00. Our gas savings over the last few months has been hundreds of dollars! » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 25 Feb 2009 | 3:43 pm Film Company Offers Cannabis Grand Prize
Check it out, Michael Phelps: British movie company Revolver Entertainment is offering a gram of cannabis for buyers of its DVDs. From Ananova: A British film company is offering an unusual competition with its latest DVD - the chance to win a bag of marijuana. Revolver Entertainment is putting a Willy Wonka-style golden ticket in one of the first 1,000 copies of The Wackness, out this week on DVD. The finder of the golden ticket wins a weekend for two in Amsterdam where they will collect a gram of high-grade skunk, courtesy of Revolver. The Wackness follows the unlikely relationship between a psychiatrist (Ben Kingsley) and a teenager (Josh Peck) which is created through their mutual love of smoking marijuana. On his role, Sir Ben proclaims: “When the audience sees Dr Squires reach for a bong for the first time they are delighted.” The Government announced tougher new laws on cannabis possession, uprating it from a Class C to Class B drug, a year ago in Britain because of increased fears about the health risks. It is decriminalised in Amsterdam where police take no action against the sale of small amounts in the city’s famous coffee shops. Source: Business Pundit | 25 Feb 2009 | 3:40 pm The 10 Most Valuable Blogs on the Web24/7 Wall Street has compiled its annual list of the 25 most valuable blogs. The CS Monitor describes trends in blog valuation, and lists the top 10 on the list: With the economy spinning, ad dollars evaporating, and the much-covered election over, many wondered how blog appraisals would change. This morning, we found out just how much. The general trend…showed prices going down. The popular Apple gossip site MacRumors lost 75 percent of its value, slumping from second place to seventh. The culprit? Bad ad atmosphere. Even with 5 million unique visitors a month, MacRumors’s hunt for paying advertisers led it to accept a lot of spots at cheaper prices. Here’s the Top 10: 1. Gawker Media: $170 million. Last year: $150 million. Why the Drudge Report is appraised at a little over half of the HuffPo’s value is anyone’s guess… Source: Business Pundit | 25 Feb 2009 | 3:38 pm Dalai Lama Impersonator on Twitter
Ananova reports: It claimed to be administered by the “The Office of His Holiness the Dalai Lama”, and directed inquiries to the exiled monk’s official website. Explaining the 73-year-old’s decision to join the microblogging site, it said: “His Holiness thought it was prudent to make his office open and assessable to a more youthful and technologically advancing audience.” Another Tweet read: “I’m sure HH will be just as inquisitive about technology as he has been over the past 14 reincarnations.” Twitter took the rare step of suspending the account after it emerged that the person behind it had no connection to the Nobel Peace Prize winner. The feed is now live again, with a caveat that its contents are not affiliated with the real Dalai Lama. Source: Business Pundit | 25 Feb 2009 | 3:37 pm Oh, Right -- The Economy
I don't know what you heard in President Obama's speech last night, but I'm thinking that one was for Main Street. The president spent a lot of time talking about jobs and priorities, but said almost nothing about the details of rescuing the banks: "You should also know that the money you've deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system. That is not the source of concern." For the listeners who want to hear from an economist who doesn't like the stimulus or the bank bailouts, etc., take a look at George Mason professor Russell Roberts' reaction to President Obama's speech. On Cafe Hayek, Roberts spins through Obama's emphases on energy, health care and education, then decides: I suspect they came out of focus groups rather than the President's team of economists. The news-news, meanwhile, churns on. The Obama administration plans to start stress tests for banks today, and we may get an announcement of new deal with Citigroup. Oh, and Japan's exports went into freefall last month -- down almost 46 percent. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 25 Feb 2009 | 3:12 pm
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If you were hoping for any remotely positive economic data this morning, the news is not just a disappointment. It is really awful. The data on weekly jobless claims is above and beyond any form of recently normal levels. And the durable goods orders are softening at a rate that would make even the most bullish pundits cringe.
Cisco Systems, Inc. (NASDAQ: CSCO) has some serious personnel issues going on, some of which are company-specific and one of which is an executive departure. The WSJ has discussed that Cisco has made several hundred layoffs. Cisco has also named a new head in the position of Executive Vice President of its Worldwide Operations.
Short selling saw a very mixed bag in this latest twice-monthly short interest data out from the NYSE and the NASDAQ. But, if you look closely there were some really large increases in the short interest from companies like Energy Conversion Devices (NASDAQ: ENER), JA Solar Holdings (NASDAQ: JASO), and LDK Solar Co. Inc. (NYSE: LDK). What is interesting is that the huge disappointment on earnings ahead was First Solar, Inc. (NASDAQ: FSLR), yet the short interest actually decreased there.
GM (GM) posted a loss of $9.65 a share for Q4 2008 compared to analyst forecasts of a $7.40 loss. Under most circumstances, that would be terribly bad news.
These are the early bird analyst calls with upgrades and downgrades from Wall Street this morning with about two and a half hours until the market opens:
Sears Holdings Corporation (NASDAQ: SHLD) beat earnings on the surface, but this is before huge charges. The retail giant of Sears and KMart posted $2.94 EPS vs. $2.68 estimates, but revenues were down 11.9% to $13.28 billion vs. $13.99 billion estimates. Where this gets interesting is in the individual metrics.
For years, Americans have assumed that the FDA was set up to test drugs. If a treatment was not effective or was too dangerous for patients, it never made it to market. If drugs that were released had side effects, those were disclosed to doctors and hospitals. The system do not work perfectly and some patients were sickened or killed by drugs with unanticipated problems. But, in general, the public could assume that the FDA was its pharma guardian angel.
It seems like a devilishly clever plan. The US government already owns 80% of AIG (AIG). Why not break the company into pieces and let taxpayers own larger chunks of the parts? The plan assumes that AIG is worth more in pieces than as an intact entity, and at this point, there is no evidence that the assumption is true.
