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Abu Dhabi reviewing Citigroup investment: sourcesABU DHABI (Reuters) - Abu Dhabi is assessing its $7.5 billion investment in Citigroup as the bank's problems deepen and consequences of a possible nationalization become clearer, according to sources close to the Abu Dhabi Investment Authority (ADIA).Source: Reuters: Business News | 1 Mar 2009 | 1:52 pm Abu Dhabi reviewing Citigroup investment: sources (Reuters)Reuters - Abu Dhabi is assessing its $7.5 billion investment in Citigroup as the bank's problems deepen and consequences of a possible nationalization become clearer, according to sources close to the Abu Dhabi Investment Authority (ADIA).Source: Yahoo! News: Business | 1 Mar 2009 | 1:52 pm Get $300 From American Express … You Risky Bastard This story almost snuck (yes, I know the grammar nazis would prefer me to use the term sneaked here) by my desk this week. But really, it might be the biggest economic indicator of the week. So it’s worth commenting on. You see, American Express is offering $300 to certain customers if they close their accounts. Sounds nice. But it’s really a brilliant chess move from AMEX. Why would a credit card company offer $300 to remove card holders when for the last decade credit card companies have been trying as hard as possible to gain market share (number of card holders) in order to impress stock holders? Have you figured it out yet? Yeah, it took me a few minutes too. Basically, here’s what’s going on. American Express sees the writing on the wall. Our economy is going to hell. People are losing jobs at ridiculous rates. The more people who lose their jobs the less people who can pay off their credit card balances, and the more credit defaults that card companies have to deal with. Ah. Now it’s starting to make sense, eh? American Express is basically trying to get people to pay off their credit card balances before they lose their jobs. Makes total sense. Put a carrot out there to get as many risky accounts to pay off their debt as possible so that when the impending credit default crisis finally rears its ugly head, American Express will have buffered its impact as much as possible. “What AmEx is trying to do is move to the front of the line in terms of getting paid back” by customers who owe debts to multiple lenders, said Michael Taiano, an analyst at Sandler O’Neill & Partners. Brilliant move. But really, a terrible economic indicator if ever there was one. What we are seeing here is one of the most profitable companies in the world betting on massive job loss in the coming years. Take my word for it. Removing card holders goes against everything this company stood for over the last decade. It cuts against the fundamental business model of acquiring market share that has so dominated this industry. Only something radical could bring about these states of affairs. Source: Business Pundit | 1 Mar 2009 | 1:43 pm Retalix gets more bids, to merge or invest, at $8 to $10 a shareRetalix Ltd. receives additional proposals to buy or invest in the company at prices of $8 to $10 a share cash.Source: MarketWatch.com - Top Stories | 1 Mar 2009 | 1:29 pm Wage accord struck for 700,000 German civil servantsGerman states and trade union representatives said they had struck a pay deal for about 700,000 civil servants Sunday, averting potentially crippling strikes. The accord foresees a...Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 1:23 pm Staying optimistic: 'I do what I love'Despite a deluge of bleak economic news, people like Brandi Shigley are remaining positive and finding success.Source: Business and financial news - CNNMoney.com | 1 Mar 2009 | 1:07 pm EU holding economic crisis summitEuropean leaders begin emergency talks aimed at stopping the economic crisis from opening up a new east-west rift.Source: BBC News | Business | World Edition | 1 Mar 2009 | 12:56 pm Harman warning on Goodwin pensionHarriet Harman says former RBS chief executive Sir Fred Goodwin should not "count on" keeping his £650,000 pension.Source: BBC News | Business | World Edition | 1 Mar 2009 | 12:54 pm Buffett's worst yearBerkshire Hathaway reported today that its net worth fell in 2008 by $11.5 billion, a decline reducing its per-share book value by 9.6%. That was Berkshire's worst result in the 44 years that Chairman Warren Buffett has run the company and, in fact, only the second decline in that period. The other drop was 6.2% in 2001, a year hurt by 9/11 and other problems in Berkshire's insurance operations.Source: Business and financial news - CNNMoney.com | 1 Mar 2009 | 12:44 pm New UBS chief signals flexibility on tax evasion: reportOswald Gruebel, the new chief executive of Switzerland's biggest bank, UBS, said in a newspaper interview published Sunday that he supported changes to banking secrecy to counter tax...Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 12:36 pm UK watchdog urges caution on child medicinesLONDON, March 1 (Reuters) - Britain's healthcare watchdog this weekend urged parents not to give many over-the-counter cough and cold medicines to children on the grounds that the risks outweigh the benefits...Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 12:28 pm SNAPSHOT - Financial Crisis - 1205 GMT- EU to commit to growth within EU single market rules.Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 12:05 pm Circle Oil says initial 1,450 bopd at Egypt opsLONDON, March 1 (Reuters) - Oil and gas exploration company, Circle Oil Plc announced its first oil production in Egypt at the Al Amir Development Lease area in the North West Gemsa Permit.Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 12:00 pm UK 'is losing £4bn tax offshore'The UK is losing at least £4bn a year through residents holding money in offshore tax havens, the TUC says.Source: BBC News | Business | World Edition | 1 Mar 2009 | 11:30 am ASEAN leaders say coordinating on financial crisisHUA HIN, Thailand (Reuters) - Southeast Asian leaders said on Sunday they backed stimulus plans, opposed protectionism and would coordinate policies to confront a deepening global financial crisis battering their economies.Source: Reuters: Business News | 1 Mar 2009 | 11:13 am AIG's latest revamp gets nod from credit-rating firms: JournalAmerican International Group's latest revised restructuring has receives quiet support from the major credit-rating companies, enabling the board on Sunday to sign off on what would be the insurance giant's third revamping since it nearly went under in September, The Wall Street Journal reports.Source: MarketWatch.com - Top Stories | 1 Mar 2009 | 11:12 am Hearst plans e-periodical reader; will charge for some e-contentHearst Corp., the New York media group, plans to begin charging for some content on its Websites and will introduce an electronic reader for periodicals similar to the Amazon Kindle electronic book reader, media reports say.Source: MarketWatch.com - Top Stories | 1 Mar 2009 | 10:46 am TEXT-Retalix says received further offers at $8-$10/shr(The following was issued by Israel's Retalix Ltd ):Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 9:57 am AIG near deal on new terms of U.S. bailout: sourceNEW YORK (Reuters) - American International Group Inc is close to a deal with the U.S. government that would ease the terms of its bailout, give a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday.Source: Reuters: Business News | 1 Mar 2009 | 9:26 am AIG near deal on new terms of U.S. bailout: source (Reuters)Reuters - American International Group Inc is close to a deal with the U.S. government that would ease the terms of its bailout, give a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday.Source: Yahoo! News: Business | 1 Mar 2009 | 9:26 am Ratings agencies back AIG bailout revision- WSJWASHINGTON, March 1 (Reuters) - Credit rating agencies Standard & Poor's and Moody's Investors Services have endorsed terms of a deal revising American International Group Inc's bailout, The Wall...Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 9:13 am Asean group seeks economic actionSouth East Asian leaders call for greater co-ordinated regional action to help restore their damaged economies.Source: BBC News | Business | World Edition | 1 Mar 2009 | 9:13 am AIG near deal on new terms of U.S. bailout: sourceNEW YORK (Reuters) - American International Group Inc is close to a deal with the U.S. government that would ease the terms of its bailout, give a further equity commitment and help it paySource: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 9:10 am HSBC looks to raise $18 billionNEW YORK (Reuters) - British banking giant HSBC will try to raise $18 billion to quell investor concerns as a worsening global economy punished famed investor Warren Buffet's Berkshire Hathaway with a 96 percent plunge in profits.Source: Reuters: Business News | 1 Mar 2009 | 8:20 am Apartment complex becomes 'Dogs allowed' without warningQuestion: We moved into our apartment complex 15 years ago. One of the reasons we chose this one was that it did not allow dogs. Recently we became aware that several buildings in the complex were designated...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Digital TV may bypass skid rowLow-income people who lack addresses recognized by the census can't get coupons for converter boxes.Steve Richardson, who goes by the name "Gen. Dogon" on the streets of L.A.'s skid row, is the kind of person federal regulators had in mind when they created the digital-television transition's subsidy. Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am Credit bureau scores probably aren't your FICO scoresDear Liz: We are retired, our house is paid off and we have no credit card balances. The credit bureau gave us a rather low score and said it was because we didn't have any debt and no mortgage. Is this...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am The ABCs of federal tax breaks for college education expensesYou can save as much as $2,500 per student, but how much you claim depends on your income, the student's educational status and how and when you paid the bill.If you're paying for a college education, you may need an advanced degree to figure out how to claim federal tax breaks for those expenses. Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am A Hollywood Hills hideawayRenovated from the ground up, contemporary design combines privacy with natureThe only thing left of the original 1959 post-and-beam house at 2739 Nichols Canyon Road is one wall. What stands there today is a sleek, contemporary-style home with dramatic open spaces, quiet meditative alcoves and canyon and city views south of Mulholland. Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am When a homeowner becomes a renterThe transition can be difficult, but it also can be a chance to change some things for the better.Michael B. Bennett used to own his home in Chesapeake, Va. Now he rents it, which is taking some getting used to. Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am When a homeowner becomes a renterThe transition can be difficult, but it also can be a chance to change some things for the better. Michael B...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Credit bureau scores probably aren't your FICO scoresDear Liz: We are retired, our house is paid off and we have no credit card balances. The credit bureau gave us a rather low score and said it was because we didn't have any debt and no mortgage. Is this fair? Suppose we want to buy a vacation home?Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am Apartment complex becomes 'Dogs allowed' without warningQuestion: We moved into our apartment complex 15 years ago. One of the reasons we chose this one was that it did not allow dogs. Recently we became aware that several buildings in the complex were designated for rental to tenants with dogs. A dog run was created near our balcony. Now I've learned that the entire complex (about 700 apartments) is open to dog owners. We tenants were never notified about the change in policy. Do we have any recourse?Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am Digitizing life's clutterPutting all your sights, sounds and stories on a disc or a computer has its advantages. But don't discount what may be lost in the transition.As the goods in our daily lives transform from analog to digital, it's hard not to wonder: Where did all our stuff go? ¶ We take photos, but the leather albums remain empty. The music collection bulges but requires no space next to the stereo. When "War and Peace" lives on electronic reading devices, it can no longer serve as a doorstop or a sign of being well-read. ¶ This dramatic change has upended the media business, offering new ways to find audiences yet undercutting decades-old methods of making money. Even as it has empowered the likes of Google and Apple, the digital transition has hobbled record labels, pushed newspaper publishers to the brink of financial ruin and threatened film and television companies. ¶ But the shift also has happened at a more personal level. In the home, we are torn between the ingrained urge to collect and the newer desire to feel light and mobile, said Aimee Baldridge, author of "Organize Your Digital Life," a recent how-to book from National Geographic. ¶ The average U.S. consumer owns 792 digital songs, 672 digital photos and 666 digital videos, according to a 2008 study by the Consumer Electronics Assn. In the next five years, this is expected to at least triple. ¶ "People are overwhelmed, and their lives are cluttered with things and information," Baldridge said. They "are looking for ways to simplify. Digital technology seems like a way to sweep things clean. But often it complicates things." Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am iTunes proves newspapers can and should charge for online accessI was standing recently before a classroom full of fresh-faced journalism students at a local high school. As I usually do at such things, I opened by asking for a show of hands from all those planning newspaper careers.Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am Obama plan to prevent foreclosures enables more homeowners to refinanceBorrowers who have made their payments on time but are saddled with high interest rates may be eligible to refinance, despite decreases in their property values.Though the final operational guidelines of the Obama administration's foreclosure-avoidance programs won't be released until Wednesday, key details have begun to surface on the extraordinary refinancing opportunities that will be available to an estimated 4 million to 5 million homeowners whose mortgages are owned or guaranteed by Fannie Mae and Freddie Mac. Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am A Hollywood Hills hideawayRenovated from the ground up, contemporary design combines privacy with nature The only thing left of the original...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Digitizing life's clutterPutting all your sights, sounds and stories on a disc or a computer has its advantages. But don't discount what may be lost in the transition. ...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am The ABCs of federal tax breaks for college education expensesYou can save as much as $2,500 per student, but how much you claim depends on your income, the student's educational status and how and when you paid the bill. ...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am iTunes proves newspapers can and should charge for online accessI was standing recently before a classroom full of fresh-faced journalism students at a local high school. As I usually do at such things, I opened by asking for a show of hands from all those planning...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Explaining American law to Chinese immigrantsDeng has become a high-profile advocate in the local community through his radio show and books and newspaper columns on immigrant rights and navigating the legal system. ...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Obama plan to prevent foreclosures enables more homeowners to refinanceBorrowers who have made their payments on time but are saddled with high interest rates may be eligible to refinance, despite decreases in their property values. ...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Explaining American law to Chinese immigrantsDeng has become a high-profile advocate in the local community through his radio show and books and newspaper columns on immigrant rights and navigating the legal system.The gig : One of the most recognizable attorneys in Southern California's ethnic Chinese community, Daniel Deng specializes in criminal defense and runs a law office in Rosemead with four partners, handling about 300 cases a year. A former journalist, he hosts a radio program and writes books and newspaper columns on immigrant rights and navigating the American legal system. Source: L.A. Times - Business | 1 Mar 2009 | 8:00 am Digital TV may bypass skid rowLow-income people who lack addresses recognized by the census can't get coupons for converter boxes. Steve Richardson,...Source: RSS feed - channel BNPaperBusiness | 1 Mar 2009 | 8:00 am Buffett says economy in shamblesNEW YORK (Reuters) - Berkshire Hathaway Inc, Warren Buffett's insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to...Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 7:50 am Buffett says economy in shamblesNEW YORK (Reuters) - Berkshire Hathaway Inc, Warren Buffett's insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market.Source: Reuters: Business News | 1 Mar 2009 | 7:50 am Buffett says economy in shambles (Reuters)Reuters - Berkshire Hathaway Inc (BRKa.N) (BRKb.N), Warren Buffett's insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market.Source: Yahoo! News: Business | 1 Mar 2009 | 7:50 am Wen warns economic crisis spreading in ChinaPremier Wen Jiabao warned that the impact of the global financial crisis was still spreading in China and the country faces the long and arduous task of combating its effects. The...Source: RSS feed - channel BNewsBusiness | 1 Mar 2009 | 7:11 am Presented By:Source: Dealbreaker | 1 Mar 2009 | 6:58 am Weekend Dealbreaker: We Are All Ponzi NowYou knew it was coming. Allen Stanford was running a Ponzi scheme. Or so says the SEC: The Securities and Exchange Commission filed an amended civil complaint late Friday alleging that Texas financier R. Allen Stanford and his company's Chief Financial Officer James M. Davis operated a massive Ponzi scheme. New SEC Complaint Says Stanford Ran Ponzi Scheme [The Wall Street Journal] 
Source: Dealbreaker | 1 Mar 2009 | 6:58 am AIG near deal on new terms of U.S. bailoutRead full story for latest details.Source: Business and financial news - CNNMoney.com | 1 Mar 2009 | 4:18 am Obama to pick Kansas governor for healthThe US president is expected to nominate Kathleen Sebelius, a staunch campaign supporter, as health secretary as he gears up for a fight over his $3,550bn budgetSource: Financial Times - US homepage | 1 Mar 2009 | 3:36 am Honda Japan output likely to hit 14-year low: reportTOKYO (Reuters) - Honda Motor Co is likely to cut output at home by over 150,000 units in the year from April, bringing its Japanese production below 1 million vehicles for the first time in 14 years, the Nikkei business daily reported.Source: Reuters: Business News | 1 Mar 2009 | 3:35 am Pipe dreamAzerbaijan's hopes for direct gas link to EuropeSource: BBC News | Business | World Edition | 1 Mar 2009 | 2:58 am Hyundai Motor Group to invest $6 billion in 2009SEOUL (Reuters) - South Korea's Hyundai Motor Group plans to invest nearly $6 billion this year, similar to 2008, and will focus on developing environment-friendly cars, as the world's No. 5 carmaker eyes longer-term growth beyond the current crisis.Source: Reuters: Business News | 1 Mar 2009 | 2:35 am Labour Party under fire for 90-day probation commentThe Labour Party is being accused of scare-mongering over the new 90-day probation period which becomes part of New Zealand's employment law today. The party's Labour spokesman Trevor Mallard has upset retailers with his suggestion...Source: New Zealand Herald - Business | 1 Mar 2009 | 2:00 am Sebelius tapped as health secretary - sourceRead full story for latest details.Source: Business and financial news - CNNMoney.com | 1 Mar 2009 | 12:05 am Shivering through Britain's pay freezePaul Bruley had a difficult decision to make: sack two of his ten staff or find some other way to slash his costs.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am Toxic loans an unknown bill to taxpayersROYAL BANK OF SCOTLAND (RBS) boss Stephen Hester slipped out of the back door of the Treasury shortly after 4am last Thursday with another long night of negotiations behind him.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am HSBC takes £17bn hit on bad loansHSBC is to own up to the full horror of its American sub-prime business, Household, when it unveils a £7 billion goodwill write-off in addition to a £17 billion provision against rising bad loans.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am JJB troubleshooter on £3,000 a dayJJB is at the centre of a fresh scandal after it emerged that Sir David Jones, who was parachuted in to save the embattled sportswear retailer, is being paid £3,000 a day and has installed his son, Stuart, as group marketing manager.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am Hospital firm eyes sell-offTHE private-hospitals group Nuffield Health is considering a sale of some of its assets, including Vanguard, its mobile operating-theatre arm, as concerns grow over the scale of its debt.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am Activist investor Brian Myerson faces a rebellion of his ownRENOWNED activist investor Brian Myerson is gearing up for another boardroom battle – but this time he will be the one facing a group of disgruntled investors.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am Even budget chain Premier Inn is feeling the recesssionTHE Whitbread leisure group will deliver the first sign that the recession has begun to hit budget hotels when it delivers a trading update tomorrow.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am HBOS chief retired on £5,000 a weekTHE banker blamed for the collapse of HBOS is already drawing down his bumper pension deal, it emerged this weekend.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am State-funded banks face tax-avoidance inquiryOPPOSITION MPs were this weekend calling for an independent review into the use of tax havens by banks bailed out by the British taxpayer.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am Winning stroke for MoorhouseTHINGS are going swimmingly for Adrian Moorhouse, the 1988 Olympic breaststroke gold medallist.Source: Latest Business News from Times Online | 1 Mar 2009 | 12:00 am AIG near deal on new terms of U.S. bailout: source (Reuters)
Source: Yahoo! News: Business | 28 Feb 2009 | 11:26 pm HSBC to raise £12bn in rights issueBank to close US lender HFC to new business and announce swingeing dividend cut .Source: Telegraph Finance | 28 Feb 2009 | 10:08 pm UKFI rejects Lloyds bonusesBank told to revise payouts to thousands of employees.Source: Telegraph Finance | 28 Feb 2009 | 10:08 pm Belgians join rush for stake in Royal MailThe private equitybacked Belgian postal group De PostLa Poste is the latest overseas company to register interest in Royal Mail.Source: Telegraph Finance | 28 Feb 2009 | 10:07 pm HSBC looks to raise $18 billion (Reuters)Reuters - British banking giant HSBC will try to raise $18 billion to quell investor concerns as a worsening global economy punished famed investor Warren Buffet's Berkshire Hathaway with a 96 percent plunge in profits.Source: Yahoo! News: Business | 28 Feb 2009 | 10:02 pm RBS approaches Kathleen O'Donovan to become audit chiefPrudential and Trinity Mirror director wanted by bank.Source: Telegraph Finance | 28 Feb 2009 | 10:00 pm NewsWatch: Berkshire's Buffett cops to mistakes, likes long-term horizonBerkshire Hathaway suffered through the company's worst year on record during 2008, Warren Buffett says. In his widely read letter to shareholders, the billionaire investor sees the U.S. economy in a "shambles" through 2009 but forecasts better days are ahead for the country.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 10:00 pm BT signals Channel 4 merger ambitionBT Vision and C4 tieup under consideration.Source: Telegraph Finance | 28 Feb 2009 | 9:56 pm SEC accuses Stanford of Madoff-type scam (AFP)
Source: Yahoo! News: Stock Markets News | 28 Feb 2009 | 9:22 pm Banks flock to Mandelson's £10bn fundLloyds Barclays and Royal Bank of Scotland have all submitted massive loan portfolios to the Government so that they can access Lord Mandelson's £10bn working capital guarantee scheme.Source: Telegraph Finance | 28 Feb 2009 | 8:44 pm Sir David Michels on National Express shortlistThe deputy chairman of Marks ? Spencer is one of the candidates to become the next chairman of National Express the bus and train operator.Source: Telegraph Finance | 28 Feb 2009 | 8:40 pm Charles Thomson bids farewell to Equitable LifeThe chief executive of Equitable Life is to step down after spending eight years at the helm of the UK's oldest mutual insurer.Source: Telegraph Finance | 28 Feb 2009 | 8:28 pm TaxWatch: Home buyers in California can enjoy up to $18,000 in tax creditsThere’s the $8,000 federal tax credit for first-time home buyers. And now California has upped the ante, offering a tax credit worth up to $10,000 to any home buyer, first time or not, of any income level, who buys a home between March 1, 2009 and March 1, 2010.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 8:26 pm Bank of England poised for rate cutThe Bank of England is set to bring interest rates down to an effective zerolevel within days and to sound the starting pistol on quantitative easing.Source: Telegraph Finance | 28 Feb 2009 | 8:21 pm Buffett's Berkshire has worst results everWarren Buffett conceded that his holding company, Berkshire Hathaway, turned in its worst performance on record as the financial crisis drew the world's economy into a deepening recession, and gave investors little reason to believe a turnaround is imminentSource: Financial Times - US homepage | 28 Feb 2009 | 8:18 pm Alistair Darling's debtdefying stuntAs RBS unloads £325bn of dodgy assets on the Treasury Philip Aldrick examines the potentially calamitous asset protection scheme.Source: Telegraph Finance | 28 Feb 2009 | 8:14 pm Wall Street slides after Citigroup-government deal (AP)
Source: Yahoo! News: Stock Markets News | 28 Feb 2009 | 6:52 pm Berkshire's Buffett cops to mistakes, likes long-term horizonBerkshire Hathaway suffered through the company's worst year on record during 2008, Warren Buffett says. In his widely read letter to shareholders, the billionaire investor sees the U.S. economy in a "shambles" through 2009 but forecasts better days are ahead for the country.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 6:26 pm Obama urges passage of $3.6 trillion budget proposalPresident Barack Obama urges Congress to pass the $3.6 trillion budget he submitted this week, reiterating that the spending plan would reduce health-care costs, improve the education system and cut taxes for 95% of Americans.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 6:14 pm Even Berkshire Hathaway Isn’t Immune to Bad Economy2008 was Berkshire Hathaway’s worst year ever, according to its annual letter to shareholders. Has the Buff lost his touch? Probably not–Berkshire Hathaway was just doing what it always does, but in a horrible economy. The Wall Street Journal reports: Warren Buffett’s Berkshire Hathaway Inc. reported Saturday morning that 2008 was the legendary investor’s worst year ever. It also reported a grim fourth quarter, though it eked out a slight gain. It was only the second year in more than 40 years that Berkshire posted negative results. In 2001, Berkshire’s book value per share fell 6.2%. The company’s performance in 2008 still far outpaced the Standard & Poor’s 500-stock index, which fell 37% last year, including dividends. Berkshire’s fourth-quarter net income was $117 million, a whopping 96% decline from last year’s $2.9 billion fourth-quarter income. The results mark Berkshire’s fifth year-over-year quarterly decline in a row. I have a lot of faith in Warren Buffet, and wager that Berkshire Hathaway will eventually regain its losses. I read about some people comparing the Oracle of Omaha to Alan Greenspan, the former Oracle of the Economy, but I think it’s a moot point. Warren Buffet’s personal investment principles were seeded as early as the Great Depression, and have guided him well until now. His core philosophy is steadfast, but can be adapted to many new situations. At $78,600 a share (as of closing on Friday), BRK-A itself might be a value buy. Source: Business Pundit | 28 Feb 2009 | 5:59 pm Lyondell wins court approval of modified bankruptcy loanA US bankruptcy judge approved with modifications a controversial $8bn loan that would enable bankrupt chemical company Lyondell Chemical to attempt to restructure in an effort to avoid liquidationSource: Financial Times - US homepage | 28 Feb 2009 | 5:56 pm Stocks to Watch: Stocks in focus for MondayA MarketWatch rundown of companies whose shares are expected to see active trading in Monday’s session.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 5:34 pm Nevada bank closed, marking 16th failure of 2009Nevada’s Security Savings Bank and Illinois-based Heritage Community Bank are closed by regulators , marking the 16th and 17th bank failures of 2009, the Federal Deposit Insurance Corporation says.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 5:16 pm Danny Lee on par for massive earningsGolfing prodigy Danny Lee looks set to become New Zealand's richest teenager - despite abdicating the A$460,000 prize on winning the Johnnie Walker Classic in Perth last week. The Rotorua 18-year-old has opted not to turn professional...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Business travel up in the airBusiness travellers are often spoiled for choice, but many are now having to make some tough decisions about how they spend their time on the road and in the air. As companies tighten their belts, travel budgets are often hit...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Bernard Hickey : If it ain't broke, don't refix itNew Zealanders desperate for any form of immediate cost saving are making a huge mistake by choosing to break out of fixed mortgages and slapping the subsequently huge break fees back on to their mortgages. It seems like a good...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Top tips : On how to manage staff in uncertain timesI am concerned about the effect instability in my business is having on my staff. How do I manage this? Be straight. Explain the challenges facing the business - including potential job losses if this is a possibility, and get...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Martin Hawes : Property to keep fallingLike many commentators, I think property values will continue to fall. I base this on doing some basic numbers. Those numbers are about yield - the amount of cash you can take from an investment before any capital gain or loss. When...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Downturn sees QV shed staffNew Zealand's biggest valuation and property information company, Quotable Value, has shed 52 jobs in the past year, mostly as a result of the property market slump. Chief executive of the state-owned enterprise, Bill Osborne,...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Editorial: Time may be right to ask what tax cuts will cost usIt is little wonder that Prime Minister John Key has refused to guarantee that the tax cuts promised for next year and 2011 will go ahead. The tax-cut programme that National took to the country in November amounted to $4.4 billion...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Deborah Coddington: Job shock! Most workers feeling fineMisery loves company in the New Zealand media right now. When the news isn't telling us everything we don't need to know about the latest stabbing or gang-related fracas, it's bombarding us with increasingly frenzied reports about...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Kerre Woodham: Lighten up, peopleFor heaven's sake! Enough already! As much as the New Zealand Herald and a strong cup of coffee are a part of my morning ritual, I'm going to bloody well find a new way to start my day unless the Herald lightens up. Oh, it's...Source: New Zealand Herald - Business | 28 Feb 2009 | 4:00 pm Market Snapshot: Stocks look to new lows as March beginsWith the market slumping to fresh 12-year lows in the last stretch of February, stocks will kick off the month of March on an increasingly uncertain footing while investors try to determine where the bottom lies for the economy and the bear market alike.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 3:24 pm Berkshire’s Letter & Report; Pain Yesterday, More Pain Tomorrow (BRK-A)
As far as the end game for all the new government action, Buffett noted “will almost certainly bring on unwelcome aftereffects. Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.” He also worries about how industries and municipalities now under government assistance will ever become financially independent again. Warren is full of discourse here in his letter and it really sounds like an old sage in a new card game. He talks about 75% of the last 44 years having positive annual returns, and suspects the same will about be true in the same period ahead. He talked about the history of America and all of its challenges we have risen from. And now for what to expect…. He and partner Charlie Munger said, “We’re certain… that the economy will be in shambles throughout 2009… and.. probably well beyond… but that conclusion does not tell us whether the stock market will rise or fall.” So here are some of Buffett’s outlying goals in hard times: maintain excess liquidity, acquiring and developing new varied streams of earnings, expanding and nurturing its cadre of operating managers. While there is never any financial guidance, Buffett noted that the business units earned below their potential in 2008 and “that will be true in 2009 as well.” The company also gave some loose plans for 2009 (or later). Berkshire’s focus will be on the earnings segment, just as it has been for several decades; and it likes buying underpriced securities, but likes buying fairly-priced operating businesses even more. In its acquisition criteria, the company is interested in making an acquisition in the $5 to $20 billion range. We can bash Warren all day if we wanted to, but he does a pretty good job of this himself. He noted, “there’s another less pleasant reality: During 2008 I did some dumb things in investments. I made at least one major mistake of commission and several lesser ones that also hurt… Furthermore, I made some errors of omission, sucking my thumb when new facts came in that should have caused me to re-examine my thinking and promptly take action.” There has also been a lot of talk among traders recently about the put contracts that Buffett engaged in for premiums, and he outlined them as follows: The company’s put option contracts total $37.1 billion across four major indexes, with the first contract due on September 9, 2019 and the last on January 24, 2028. It has received premiums of $4.9 billion, and based upon a $10 billion year end liability it reported a mark-to-market loss of $5.1 billion from these contracts. For those to be an entire loss, the equity index levels would have to go to zero and if the markets stay as they are right now then Buffett would owe about $9 billion between 2019 and 2028. The company also wrote some credit default swaps in 2008. At year end it had written $4 billion in contracts on 42 corporations, for which it receives annual premiums of $93 million. Buffett says they are unlikely to expand this business. What you saw is actually worse than a bloodied Buffett. This was frankly the most cautious and worst reporting letter we have seen from the Oracle of Omaha. Berkshire Hathaway stock price closed out 2008 at $96,600.00, and that is down from a high of $147,000.00. Its shares closed yesterday at $78,600.00. Following Obama’s example, Buffett commented “America’s best days lie ahead.” Here is also where you can see a copy of the FULL ANNUAL REPORT. Jon C. Ogg       Source: 247 Wall Street | 28 Feb 2009 | 3:11 pm Mortgage breaks: Wealthy on the hookThe Obama administration plans to tap the rich to help pay for its ambitious programs. Specifically, that will include slashing mortgage interest deductions for high-income taxpayers.Source: Business and financial news - CNNMoney.com | 28 Feb 2009 | 2:12 pm After GE Dividend News, What To Expect Next (GE)
The first thing we expected to change was the dividend. That has been cut. The cut is more than we expected as we were only calling for half of the dividend to be cut. Frankly, what’s a few billion between friends….. The dividend is out. This is going to sound like heresy, but we are just going to address it. GE still has a TRIPLE-A rating form the ratings agencies of Moody’s and S&P. We have not been told this by the ratings agencies (particularly since we bash them all the time), but we are just assuming for evaluation purposes that the TRIPLE-A rating will not be around forever. Not in this climate. There are things that G.E. could do further to protect that rating. Moody’s put out a “still under review” notice within about an hour of yesterday’s dividend cut. We hope we are wrong in this assumption in evaluating our position here. We believe that the last two analyst downgrades that were over the same things we have discussed over and over were about as late as the notion that maybe you better pay down your high interest credit cards. Another bit of heresy. We are just already operating under the assumptions that a member of senior management will not be there for much longer. I personally do not endorse that notion. But the drop here has been too big to ignore and the calls for change have been so frequent that you have to wonder. Whether it is more and more reshuffles or whether it occurs in the top few positions, we just won’t be be shocked at all if there is a big change announced at some point not too far out. Again, this is just one of the assumptions that new investors wanting to buy G.E. stock should consider. Earnings metrics… First just address earnings for all of 2009. GE’s consensus estimate from First Call is $1.26 EPS. Just 3 months ago, the consensus estimate was $1.75. This estimate hasn’t come down much at all in the last few weeks. You read much of the same data we do…. Who here would be surprised at all if GE makes new earnings assumptions. Even if it does not, ask yourself if you would be shocked if analysts take those numbers down further. This should already be factored in. Capital… The good news is that in the official statement, Immelt said that the company has no plans to raise more equity. Now here is the deal. We actually expect more capital to be raised. That might not be equity. That could be in units or lines of business. It could come from a thousand sources. We have just already factored it in mentally. They may prove us wrong. Customers and credit… We have seen more credit erosion than we want to discuss. Trust me, it is depressing covering it. So we just expect credit erosion at the company’s customers. Sorry, but we already believe that is the case. Airplane orders, infrastructure projects, alternative energy pacts, oil exploration, and on and on. How many delays or cancellations does it take before deciding that you could expect even more issues to be passed on down the line toward GE’s units. The good news is that if this holds up on a performance metric better, then there will be a pleasant surprise. There is one notion that we want to say in all of our gloom and doom that we believe should already be baked in the cake. But there is one distant outlier that is not. We want to say up front that NONE of the analysts covering it have made this call. We are not making it either. But we want to at least address it because we believe that this is not factored in and would not be a “known” event. What if the company managed to post a loss from operations ? Again, we are not making that call. That would not be factored in by our estimates. We won’t be shocked if and when Immelt and friends in the company talk down numbers, although, again, we do not expect any “loss” scenario on earnings. Here is a part of what the statement from Immelt: “We have made tremendous progress in strengthening GE’s balance sheet to ensure that the Company is well-capitalized and with access to ample liquidity… At the February 6 Board meeting, we announced we would evaluate the dividend for the second half of 2009 in light of current market conditions. After extensive review, we have determined that reducing the dividend, while still maintaining it at a competitive level, is a prudent measure to further enhance our balance sheet and provide us with additional flexibility for potential future opportunities. With these actions and the others we have taken to keep the Company safe and secure, we currently do not have any plans to raise more equity.” We will be addressing this position again in the “10 Stocks Under $10″ newsletter this weekend. We do not expect any miracle cures in the world and we are not expecting everyone to benefit from the changes that are coming. That is one of the reasons that we have a balance between positive and negative calls in the newsletter. Jon C. Ogg       Source: 247 Wall Street | 28 Feb 2009 | 1:51 pm ECB's Trichet: We'll see a pick up in 2010DUBLIN (Reuters) - European Central Bank President Jean-Claude Trichet said in an interview that a pick up in the economy will be seen next year.Source: Reuters: Business News | 28 Feb 2009 | 1:50 pm Stocks end at 12-year lowsStocks tumbled Friday on worries about the government taking a bigger chunk of Citigroup and a bleak reading on the economy, again touching 12-year lows.Source: Business and financial news - CNNMoney.com | 28 Feb 2009 | 1:35 pm Combative Obama vows to fight for his budgetA combative President Barack Obama warned he was bracing for a fight against powerful lobbyists and special interests who sought to pick apart the $3,550bn budget he wants to advance his agenda of reformSource: Financial Times - US homepage | 28 Feb 2009 | 1:28 pm
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Berkshire Hathaway Inc. (NYSE: BRK-A) has just released its 2008 annual report, along with the ever-important letter to shareholders from the Oracle of Omaha, Warren Buffett. 2008 was more than a rough year. You have to read into Buffett’s comments to get the full effect. We are sorry to say it, but Mr. Buffett sounds like an old aged boxing champion that decided to fight a much younger and larger champion. In that spirit, Mr. Buffett was beaten so bad that he had to go to the hospital and his own prognosis is for 2009 to be a very tough year.
We already noted what is happening on the General Electric Co. (NYSE: GE) dividend. The company’s plans to save $9 billion from the $0.31 dividend cut being taken down to $0.10 is much more than what we were expecting. We expected “only” a cut by half. But what we want to review here is what we expect to occur from here. There are many more issues that could be coming down the pipe.