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Corning Talking Up LCD Business (GLW)Corning Incorporated (NYSE: GLW) President and Chief Operating Officer Peter F. Volanakis has an investor update today at the Morgan Stanley Technology Conference in San Francisco. The company is updating its guidance and is giving some of its business metric targets for 2009. Surprisingly enough, it isn’t all that bad when you consider the metrics given by others in recent weeks. The company will cite NPD data on January unit sales of LCD TVs increased 35% over 2008, with unit sales up 109% in China and up 17% in Japan. The company also notes that the first two weeks of February appear positive with U.S. sales up 40% year over year, and the company is forecasting worldwide LCD TV unit sales to increase by 9% for the full year. For 19-inch and 32-inch TV’s, the company says that panel prices have increased this month, and it is seeing an increase in Taiwanese and Korean panel maker utilization rates from January to February. More importantly, the president is noting that there could be less pricing pressure on component suppliers. They are also confident that the display supply chain “will stop contracting at the end of the first quarter. “ While this may not be total company guidance, the president is reiterating that Corning’s 2009 revenue expectations of $5 billion does require an increase in overall LCD panel sales in the second half of this year. It may be too soon to declare that a victiory, but what this sounds like it that company is issuing “reiterated guidance, with caveats.” So far, shares are still down almost 1% at $10.45 this morning as there is weakness in the market across the board. Its 52-week trading range is $7.36 to $28.07. Jon C. Ogg Tagged: GLW      Source: 247 Wall Street | 2 Mar 2009 | 2:14 pm Stronger US dollar helps PearsonMedia group Pearson reports a rise in 2008 profits, boosted by a stronger dollar.Source: BBC News | Business | World Edition | 2 Mar 2009 | 2:12 pm Consumer spending, incomes rebound in JanuaryWASHINGTON (Reuters) - U.S. consumer spending rebounded in January, snapping six months of declines, and incomes rose unexpectedly, boosted by salary increases for government employees, a government report showed on Monday.Source: Reuters: Business News | 2 Mar 2009 | 2:09 pm Wendy's/Arby's posts 4Q loss, mainly on chargeWendy's/Arby's Group Inc., formed when the owner of Arby's bought the Wendy's brand last year, said Monday it posted a loss in its fourth quarter mainly because of a charge that resulted...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 2:05 pm Oh No She Di'Int
Source: Dealbreaker | 2 Mar 2009 | 2:05 pm Ahold lifts dividend as fourth-quarter profit rises 9%Dutch supermarket giant Royal Ahold NV on Monday posts a better-than-expected 9% increase in fourth-quarter profit as margins improve at its U.S. businesses following a makeover and the strength of the dollar boosted revenue.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 2:04 pm Futures cut losses after spending/income data (Reuters)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 2:03 pm Futures cut losses after spending/income data (Reuters)
Source: Yahoo! News: Business | 2 Mar 2009 | 2:03 pm Futures cut losses after spending/income dataNEW YORK (Reuters) - Stock index futures cut losses on Monday following government data that showed a rebound in personal expenditures and incomes in January, but unease stemming American International Group's report of a $61.7 billion quarterly loss remained a drag.Source: Reuters: Business News | 2 Mar 2009 | 2:03 pm AIG gets new aid after record $61.7 billion lossNEW YORK (Reuters) - American International Group Inc posted a $61.7 billion quarterly loss, the biggest in corporate history, and reached a new government bailout deal after officials concluded the insurer was too big to be allowed to fail.Source: Reuters: Business News | 2 Mar 2009 | 2:02 pm AIG gets new aid after record $61.7 billion loss (Reuters)
Source: Yahoo! News: Business | 2 Mar 2009 | 2:02 pm AIG gets fresh $30bn bail-outAmerican International Group, the troubled global insurance conglomerate, announced that it would cede control of two of its largest divisions to the US government in exchange for a $30bn lifelineSource: Financial Times - US homepage | 2 Mar 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 | 2 Mar 2009 | 2:01 pm NewsWatch: Stock futures indicate Dow to fall below 7,000U.S. stock futures drop as financial giants like American International Group and HSBC Holdings took moves to raise more capital and as Warren Buffett said the economy would be in “shambles” this year.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 2:00 pm But We Were Having So Much Fun!CNBC reports that Freddie Mac CEO David Moffett is outie. According to FRE, Moffs "wants to return to the financial services sector," and they're going to work hard together to find a replacement.
Source: Dealbreaker | 2 Mar 2009 | 1:59 pm Corrections: U.S. savings rate rises to 14-year highA MarketWatch article published March 2 on personal saving and consumer spending included an inaccurate historical comparison. The savings rate in January was the highest in 14 years.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:59 pm Wall Street heads for another big drop (AP)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 1:58 pm HSBC slashes 6,100 U.S. jobs, sets huge share saleLONDON (Reuters) - HSBC launched Britain's biggest rights issue on Monday, to raise 12.85 billion pounds ($18.3 billion) to help it overcome big losses in the United States and exploit the woes of weaker rivals.Source: Reuters: Business News | 2 Mar 2009 | 1:58 pm Economic Report: Savings rate rises to 14-year high in JanuaryU.S. households socked away most of the extra income they got in January from annual cost-of-living raises, boosting the personal savings rate to a 14-year high, the Commerce Department says.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:57 pm Indications: Stock futures indicate Dow to fall below 7,000U.S. stock futures drop as financial giants like American International Group and HSBC Holdings took moves to raise more capital and as Warren Buffett said the economy would be in “shambles” this year.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:56 pm Note From UBS: AT&T (T) And Verizon (VZ) Dividends OK
He writes: “Dividend cuts at other companies underscore strength at AT&T/VZ. With a number of large companies such as GE and JPMorgan having slashed their dividends, we believe AT&T and Verizon will increasingly be seen as safe havens within an increasingly ugly storm. We believe the dividends are safe at AT&T and Verizon due to their strong and stable cash flows, cost saving opportunities and the still high level of success-based capex in their budgets.” Douglas A. McIntyre Tagged: T, VZ      Source: 247 Wall Street | 2 Mar 2009 | 1:51 pm European, Asian stocks slide (AFP)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 1:50 pm Ex-Belgo director avoids jail for insider tradingTimothy Power, the former Belgo executive who last month pleaded guilty to insider dealing in shares of the restaurant group, has avoided jail after being given an 18 month suspended sentence.Source: Latest Business News from Times Online | 2 Mar 2009 | 1:48 pm Israel Stocks: Market lower; Cellcom rises after reportIsrael stocks decline on Monday, on weakness in Israel Chemicals, Teva Pharmaceuticals and sharp drops in banking and real estate.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:46 pm Administrate ThisIt should come as no surprised that the Madoff losses have resulted in a big spikey-spike in "we promise we have a bunch of investments, just ask Bob over there" shifts to third party administrators. Lots of larger funds had integrated substantial administration and back office services into their own operations at least for cost savings purposes (if not for less savory reasons). Now that move is being unwound all over, pushed somewhat belatedly by financial institutions like Union Bancaire Privée. DE Shaw is just the latest in a number of firms moving in this direction. Since Bernard Madoff was arrested and charged with fraud in New York in December, US hedge funds have been under unprecedented scrutiny from investors concerned about possible repeats of the problem. Earlier this year Millennium Management, the $11bn New York hedge fund, appointed London's GlobeOp to act as an independent administrator, to reassure investors. We suppose going long administrators is already played out. Fund plans third-party checks [The Financial Times]
Source: Dealbreaker | 2 Mar 2009 | 1:42 pm UPDATE 1-Valero has planned Houston refinery workNEW YORK, March 2 (Reuters) - Valero Energy Corp , the largest U.S. refiner, is undertaking planned maintenance work at the 83,000 barrel-per-day Houston, Texas refinery, according to a weekend refinery...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:42 pm World stocks fall on US economic slump, bank woes (AP)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 1:40 pm HSBC asks shareholders for £12.5bn as global downturn hits profitsBritain's biggest bank announces a dramatic scaling back in America as it admits defeat on its subprime division.Source: Telegraph Finance | 2 Mar 2009 | 1:40 pm Before the Bell: HSBC Holdings, AIG and PNC in the spotlightU.S. stock futures pointed to sharp opening losses as American International Group and HSBC Holdings announced plans to raise roughly $50 billion in capital and as Warren Buffett said the economy would be in “shambles” this year.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:39 pm Consumer spending up, ending slideConsumer spending rose more than expected in January, after declining for six consecutive months, according to government figures released Monday.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 1:37 pm Euro drops against dollar after EU rejects bailoutThe euro fell sharply against the dollar on Monday after European Union leaders ruled out a regional bailout plan for Eastern Europe at a weekend summit, analysts said. The dollar also...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:37 pm Income & Spending Up In The Recession, MaybePersonal Income & Spending for the month of January 2009 have both been released. Personal income received by the workforce came in at +0.4%, while spending for durable goods and non-durable goods in the U.S. came in at +0.6%. Bloomberg had estimates at -0.2% for personal income, which would have been consistent with the December reading of-0.2%. Those estimates for spending were expected to be UP by 0.4% after a 1% decline in December. Frankly, this is actually a bit surprising when you consider the data that we have been seeing in January and since. Because there is a large time delay, you might have to wait for revisions on this before declaring a real victory. The income component also looks like there were items and adjustments in the reporting. The other reason this is surprising is because personal saving rose 5.0% in January. That would be the highest reading since 5.5% in March 1995. Again, this is good on the surface, but there is an issue here on whether you trust the data as being actual apples to apples and as to whether or not the data is entirely accurate. Jon C. Ogg       Source: 247 Wall Street | 2 Mar 2009 | 1:36 pm Citi may need more capital despite government move: Deutsche(Reuters) - Citigroup Inc may need to raise additional capital despite the U.S. government's move to bolster its capital base, said an analyst at Deutsche Bank, who sees a 2009 loss of about $4.5 billion for the company excluding any preferred share dividend payments.Source: Reuters: Business News | 2 Mar 2009 | 1:32 pm Chesapeake cuts production 7%, eyes 'balance' by 2010Chesapeake Energy says it’s scaling back 7% of its total production and may make reductions in drilling activity as the energy giant comes to grips with low natural-gas prices.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:32 pm Marshall & Ilsley Corporation Reports Revised 2008 Fourth Quarter Net Loss Driven by Noncash Goodwill Impairment Charge Resulting From Stock Price Decline- Noncash after-tax goodwill impairment charge of $1.5 billion, or $5.70 per share. - No impact on cash flow or liquidity and negligible impact on regulatory and...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:32 pm Freddie Mac Will Not Issue a Reference REMIC(R) Security in MarchMCLEAN, Va., March 2 /PRNewswire-FirstCall/ -- Freddie Mac (NYSE: FRE) today announced it will not issue a Reference REMIC(R) security during the week of March 9, 2009. The...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:30 pm A. Schulman Modifies Guidance and Further Realigns Operations in Europe and Mexico- Guidance for fiscal 2009 withdrawn - Cash position remains strong with January month-end cash increasing to $139 million from $116 million at November 30, 2008Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:30 pm UK Share Register Data Now Available in the Capital IQ PlatformCapital IQ teams up with JunctionRDS to provide ownership information on UK companies NEW YORK, March 2 /PRNewswire/ -- Capital IQ, a Standard & Poor's...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:30 pm Dr Pepper Snapple to Record $45 Million One-Time Gain in First Quarter 2009Gain related to termination of Monster Energy drink distribution agreement in U.S. PLANO, Texas, March 2 /PRNewswire-FirstCall/ -- Dr Pepper Snapple Group, Inc....Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:30 pm Conseco Plans Delayed 10-K Filing; Announces Preliminary ResultsCARMEL, Ind., March 2 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO) announced today that it plans to delay the filing of its Annual Report on Form 10-K until on or before...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:30 pm Curtiss-Wright Revises 2008 Full Year and Fourth Quarter Financial ResultsROSELAND, N.J., March 2 /PRNewswire-FirstCall/ -- Curtiss-Wright Corporation (NYSE: CW) revises its financial results for the fourth quarter and full year ended December 31,...Source: RSS feed - channel BNewsBusiness | 2 Mar 2009 | 1:30 pm Oil drops below $43 on economic pessimismLONDON (Reuters) - Oil fell more than $2 a barrel to below $43 on Monday as a deteriorating world economy threatened to cut further into fuel consumption and made OPEC's tight compliance with supply curbs look insufficient.Source: Reuters: Business News | 2 Mar 2009 | 1:28 pm Futures Movers: Oil drops 5% on economic worries, falling stocksOil futures drop sharply early Monday, as falling global equity markets and economic worries weigh on investor sentiment.Source: MarketWatch.com - Top Stories | 2 Mar 2009 | 1:28 pm Goldman Sachs Upgrades AT&T (T) And Adds To Conviction List
Jason Armstrong said in his research report that “We believe an aggressive estimate reset, a safe dividend, and positive trends in upcoming 1Q results fortify AT&T as a relatively safer investment at this point.” Armstrong added that the AT&T earnings estimates were likely to be conservative and kept its 12-month price target at $30. AT&T trades just below $24. Douglas A. McIntyre Tagged: T      Source: 247 Wall Street | 2 Mar 2009 | 1:25 pm Stock markets tumble on new bank fearsGlobal equity markets tumbled nday after a £12.5bn rights issue from HSBC and a fresh bail-out of AIG, the US insurance group, spooked investors around the worldSource: Financial Times - US homepage | 2 Mar 2009 | 1:24 pm Wendy's/Arby's posts loss due to special itemsCHICAGO (Reuters) - Wendy's/Arby's Group Inc , the third largest U.S. fast-food chain, posted a quarterly loss of nearly $400 million due to special items in its first report of combined financial operations.Source: Reuters: Business News | 2 Mar 2009 | 1:23 pm DISH & EchoStar Confuse On Earnings (DISH, SATS)DISH Network Corporation (NASDAQ: DISH) and former partner EchoStar Corp. (NASDAQ: SATS) have both reported earnings this morning. DISH (DISH) posted earnings of $0.48 EPS on a 1% decline in revenues to $2.92 billion. This is actually under estimates of $0.49 EPS and $2.96 billion in revenues, but the miss here is so close that in today’s market it might be considered a win. DISH also lost 102,000 net subscribers by its own count. EchoStar Corp. (SATS) is where this gets convoluted. It posted a rather large loss at -$7.73 EPS on $496 million in revenues. $247 million of the loss was a goodwill writedown of $247 million for the purchase of Sling Media and $216 million in investment losses. We do not have enough estimates on this one for it to really count, but estimates for revenues look to be $563.3 million. Neither stock has traded this morning. Jon C. Ogg Tagged: DISH, SATS      Source: 247 Wall Street | 2 Mar 2009 | 1:22 pm Japanese car sales fall sharplySales of new vehicles in Japan in February fall by almost a third, new figures reveal.Source: BBC News | Business | World Edition | 2 Mar 2009 | 1:20 pm AIG suffers $62B loss, bailout revampedInsurance giant American International Group reported a stunning $62 billion quarterly loss on Monday, while government officials unveiled their latest efforts to prevent the collapse of the firm.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 1:18 pm Treasurys rise on AIG, economyBond prices rose early Monday after American International Group announced a staggering quarterly loss and the U.S. government unveiled additional bailout provisions for the ailing insurer.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 1:18 pm AIG reports record $61.7bn lossInsurance giant AIG reports the largest quarterly loss in corporate history - as it receives more government help.Source: BBC News | Business | World Edition | 2 Mar 2009 | 1:15 pm Recession hits Whitbread's budget hotels chainThe recession has hit even budget hotels it emerged today when Whitbread, the leisure group, reported a fall in business at its Premier Inn chain.Source: Latest Business News from Times Online | 2 Mar 2009 | 1:11 pm Dish Network profit up despite subscriber declineNEW YORK (Reuters) - Satellite TV provider Dish Network Corp posted higher fourth-quarter profit on Monday despite losing more than 100,000 subscribers.Source: Reuters: Business News | 2 Mar 2009 | 1:09 pm Feds give AIG $30 billion moreReporting from Washington — Federal officials tossed American International Group another financial lifeline today, providing up to $30 billion more to help the staggered insurance giant deal with a record $61.7 billion loss in the final three months of last year.Source: L.A. Times - Business | 2 Mar 2009 | 1:07 pm Feds give AIG $30 billion moreReporting from Washington — Federal officials tossed American International Group another financial lifeline today, providing up to $30 billion more to help the staggered insurance giant deal with...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 1:07 pm $800 billion - where the waste will beIt's like winning the lottery, then being told you have just a week to spend it. And, oh yeah, don't waste any of it.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 1:03 pm Bargain Hunter: On track for a cheap day outOur regular moneysaving column has tips on cheaper travel as well as bargain snacks and computer games.Source: Telegraph Finance | 2 Mar 2009 | 1:02 pm Geithner AnalysisI love that our interview with Treasury Secretary Tim Geithner has its own life as an object of analysis. Steve Waldman has an interesting take.
and Mr. Geither's unspoken assumption is that fixing our financial system implies ensuring that incumbent troubled financial institutions are "strong". But that's not right. Our financial system is composed, in part, of financial institutions, but it is supposed to be larger and more robust than any specific firm. Our friends at Baseline Scenario had more thoughts, these from James Kwak. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 2 Mar 2009 | 1:01 pm Stocks set for drubbingStocks could take a beating at Monday's open on Wall Street after American International Group reported a massive quarterly loss and a restructuring of its bailout by the government.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 12:57 pm Why Amazon continues to succeedSource: Business and financial news - CNNMoney.com | 2 Mar 2009 | 12:57 pm World's 50 most admired companiesWith admiration in such short supply these days, it's more valuable than ever. Apple tops our list of firms with the best reputations for a second year. Who else made the top 50?Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 12:56 pm Spansion files for bankruptcySource: Business and financial news - CNNMoney.com | 2 Mar 2009 | 12:56 pm Xstrata shareholders approve $5.9 billion rights issueLONDON (Reuters) - Shareholders of mining group Xstrata Plc approved a $5.9 billion rights issue on Monday so the firm could pay off debt and also voted for the acquisition of a coal mine in Colombia.Source: Reuters: Business News | 2 Mar 2009 | 12:53 pm HSBC cuts 6,100 jobsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 12:50 pm Taxpayers hit by expanding black hole of AIGAmerican International Group has set a doleful record.Source: Telegraph Finance | 2 Mar 2009 | 12:48 pm Opening Bell: 03.02.09
"A source familiar with the matter said on Sunday night that U.S. authorities felt it was cheaper to put more taxpayer money into AIG than to take the risk of letting it fail. Allowing the collapse of AIG, which has struggled to sell assets, would have far-reaching consequences for the global financial system as the company guarantees about $300 billion of asset-backed securities and other debt, analysts have said." Oracle Of Omaha Goes Alarmist (Bloomberg) "The economy will be in shambles throughout 2009 -- and, for that matter, probably well beyond," said Buffett. "Though the path has not been smooth, our economic system has worked extraordinarily well over time. It has unleashed human potential as no other system has, and it will continue to do so." HSBC Cuts 6100 US Jobs (Reuters) Group-wide the bank said that losses on bad loans jumped 44 percent versus 2007 to $24.9 billion." Plus, the $18 billion rights issue. Wheels up on Project Concord? Standford CFO To SEC: ESAD (Reuters) Davis asserted his Fifth-Amendment right, declining "to testify or provide an accounting ... or produce any documents related to the matters set forth in the Commission's complaint," according to a filing with a federal court in Dallas on Friday." A Look At The MS Chinese Land Scandal (NYT) "For Morgan Stanley, which runs one of the world's biggest real estate funds, it is a black mark on an otherwise sterling reputation. People knowledgeable about the case say that Morgan Stanley has sent both United States and Chinese officials documents indicating that Mr. Peterson, the bank's highest-ranking real estate executive in China, may have secured some transactions by offering cash or gifts to Chinese officials. His partners in some deals were Chinese government investment funds." Eric Prince Stepping Down From Blackwater (WSJ) "I'm a little worn out by the whole thing, the politics of it all," Mr. Prince said during an interview at the company's headquarters in McLean, Va. "Me not being part of the equation reduces the 'X' on the thing.""
Source: Dealbreaker | 2 Mar 2009 | 12:48 pm AIG enters record books with $61.7 billion loss (Reuters)Reuters - American International Group Inc posted a $61.7 billion fourth-quarter loss -- the biggest quarterly loss in corporate history -- after reaching a revised rescue deal with the U.S. government that wards off for now the prospect of crippling credit rating downgrades.Source: Yahoo! News: Business | 2 Mar 2009 | 12:47 pm Wall Street pulling out of HollywoodRead full story for latest details.Source: Business and financial news - CNNMoney.com | 2 Mar 2009 | 12:46 pm AIG makes America's largest loss amid new rescueAIG, the fallen US insurer, unveiled a $62 billion loss today $— the largest in US corporate history — as it secured a fresh $30 billion bailout package from the Government.$Source: Latest Business News from Times Online | 2 Mar 2009 | 12:46 pm Money made easy for young adultsA userfriendly website from the City regulator offers impartial help to financial novices.Source: Telegraph Finance | 2 Mar 2009 | 12:40 pm London stock market strikes six-year low (AFP)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 12:35 pm Job losses announced at regional airportsMore than 100 staff are to lose their jobs at three of Britain's regional airports due to declining passenger numbers.Source: Telegraph Finance | 2 Mar 2009 | 12:29 pm HSBC slashes 6,100 U.S. jobs, sets huge share sale (Reuters)
Source: Yahoo! News: Business | 2 Mar 2009 | 12:26 pm UK manufacturing weakens for tenth monthThe recession in manufacturing deepened last month after figures showed levels of production and employment fell at record rates.Source: Telegraph Finance | 2 Mar 2009 | 12:16 pm Early Bird Analyst Upgrades (ASCA, ABX, BX, JNS, JPM, KGC, REP, SAP, TYC, WEN)
Ameristar Casinos (ASCA) Raised to Overweight at JPMorgan. JON C. OGG Tagged: ABX, ASCA, BX, JNS, JPM, KGC, REP, SAP, TYC, WEN      Source: 247 Wall Street | 2 Mar 2009 | 12:15 pm Economy worries hit global sharesGlobal stock markets see big falls on fears the global financial sector could be taking a further turn for the worse.Source: BBC News | Business | World Edition | 2 Mar 2009 | 12:13 pm Early Bird Analyst Downgrades (CTSH, INFY, NEM, TKC, WIT, WGOV)
Cognizant Technology (CTSH) Cut to Underperform at Wachovia. JON C. OGG Tagged: CTSH, INFY, NEM, TKC, WGOV, WIT      Source: 247 Wall Street | 2 Mar 2009 | 12:10 pm Stricken AIG slumps to record quarterly lossAmerican insurer will get as much as 30bn in new capital after a record fourthquarter loss.Source: Telegraph Finance | 2 Mar 2009 | 12:09 pm HSBC in £12.5bn fund raising planHSBC confirms it is seeking to raise £12.5bn from shareholders to help boost its finances, sparking falls in the UK stock market.Source: BBC News | Business | World Edition | 2 Mar 2009 | 12:00 pm Euro manufacturing 'slides again'Manufacturing activity in the eurozone falls to its lowest level in 12 years in February, according to new figures.Source: BBC News | Business | World Edition | 2 Mar 2009 | 11:58 am Factory downturn 'accelerating'UK manufacturers cut jobs and output at a record pace in February, according to the latest Purchasing Managers' Index.Source: BBC News | Business | World Edition | 2 Mar 2009 | 11:52 am Candover calls halt to 2008 fund investmentCandover Investments, the quoted private equity vehicle, will stop investing its 2008 fund after heavy losses as speculation gathers pace over its future.Source: Latest Business News from Times Online | 2 Mar 2009 | 11:47 am AIG gets fresh $30bn bail-outAIG on Monday announced a radical plan to break itself up after 90 years as a global insurance conglomerate by ceding control of its two largest divisions to the US government in exchange for a $30bn-plus...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 11:43 am HSBC plunges after £12.5bn rights issueThe bank outlined plans to close its struggling US consumer financing business, bought for $14bn in 2003, with the loss of 6,100 jobs as it unveiled the largest traditional rights issue in UK corporate historySource: Financial Times - US homepage | 2 Mar 2009 | 11:43 am HSBC plunges after 12.5bn rights issueShares in HSBC tumbled on Monday after the bank launched a deeply discounted 12.5bn rights issue and outlined plans to close its struggling US consumer lending business.The rights issue, the largest ever...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 11:43 am Calling A Foul On The Ratings Agencies: Pre-Approving AIG (AIG) Deal
The terms of the transaction with the Fed will give AIG access to as much as $30 billion in new funding from the TARP. The agency will get equity in two of the insurance company’s most valuable units. All of this comes on the heels of AIG reporting a net Q4 loss of $61.7 billion compared to net loss of $5.3 billion in the same quarter a year ago..
According to The Wall Street Journal, “Without the support of the credit rating agencies, AIG would have faced crippling cuts to its ratings. The downgrades would likely have forced it to post billions in collateral on an array of financial contracts.” Since when was it the job of the the credit agencies to implicitly act on behalf of the government and a company, in this case AIG, which is 80% owned by the government? Did the credit agencies huddle with GE (GE) before it cut it dividend to tell the conglomerate the move would save its “Triple-A” rating? Obviously not. If the credit rating firms are to become slaves which support the government’s ability to inject capital into companies with a positive effect on the value of their debt and the interest rates that they will pay for raising additional money, credit ratings have been ruined. The credit rating industry was nearly ruined when it blessed the safety of mortgage-backed securities. Now it has defiled themselves by acting as agents of the Treasury and the Fed. As the economy falls further and further into recession, the issue of the safety of corporate, state, and municipal debt will only become larger as investors seek safe havens. There is no longer any place to turn to get reliable expert opinions. Douglas A. McIntyre Tagged: AIG, GE      Source: 247 Wall Street | 2 Mar 2009 | 11:42 am Vivendi posts fourth-quarter loss (AP)AP - French media and telecommunications giant Vivendi SA said Monday it made a loss in the fourth quarter as falling stock markets forced it to write down the value of its stake in film and television powerhouse NBC Universal.Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 11:36 am Sony shares outstrip peers after shake-upTOKYO (Reuters) - Shares of Sony Corp outperformed those of its rivals in a sliding market on Monday, as CEO Howard Stringer's move to directly oversee the electronics arm at the center of the firm's problems raised investor hopes for speedier restructuring.Source: Reuters: Business News | 2 Mar 2009 | 11:28 am Fool’s Gold
If slashing interest rates has the desired effect, the U.S. economy will likely enter into an inflationary period. This should spur a rally in gold as investors seek a hedge against the effects of inflation. If low interest rates fail to turn the economy around, gold should continue to benefit from the fear-driven buying that has driven it to its current level of around $950 an ounce. The effect of economic deterioration on gold is evident in the way that it has traded since the first of the year. The average monthly trading volume for SPDR Gold Trust (GLD) is up over 200% since the beginning of the year. Its safe to say that if gloomy economic news continues to emerge gold prices will at least hold up. However, the argument that increased inflation will be similarly bullish for gold is off the mark. A good deal of the upward pressure on gold prices has been speculative trading. If low interest rates are successful they will bring back more than inflation. Barring a Carter-era anomaly, inflation will be a function of a recovering economy. When the economy reaches this point speculators will be looking for opportunities in assets that did not experience a run-up while the recession was still in progress. Economic recovery may pose the greatest risk to gold investors. Garrett McIntyre       Source: 247 Wall Street | 2 Mar 2009 | 11:15 am 'Small shareholders are buying again'Private investors are beginning to return to the stock market according to the latest research from Capita Registrars.Source: Telegraph Finance | 2 Mar 2009 | 11:06 am The Toyota (TM) Prius: Supercar Hits A Road Block
Consumers like the blend of a “green” engine that helped the environment and offsets high fuel prices. But, as the car business enters 2009, the Prius has gone onto life support. According to Bloomberg, “Toyota Motor Corp. (TM) is poised to introduce its 2010 Prius, the world’s top-selling hybrid, into a shrinking U.S. auto market that now includes a cheaper, revamped competitor from Honda Motor Co. (HMC).” Is is any wonder? The drop in fuel prices and fall-off in car sales may be hurting Prius sales, but the pricing of the car is an even bigger problem. The typical hybrid costs about $5,000 more than a gasoline-powered version of the same model. The price is due to the additional technology and parts needed to add hybrid capacity. In a recession, even if the Prius gets better gas mileage and helps the environment, very few consumers are willing to pay a large premium for the privilege of owning one. The market did not turn against the Prius so much as the Prius priced itself out of the market. Douglas A. McIntyre Tagged: HMC, TM      Source: 247 Wall Street | 2 Mar 2009 | 11:05 am HSBC's Household folly gives ABN Amro a run for its moneyHSBC has grasped the nettle of its disastrous excursion into the US subprime market but not before time writes banking editor Philip Aldrick.Source: Telegraph Finance | 2 Mar 2009 | 11:02 am Euro set to fall further on EU split over eastern Europe bailoutThe euro is set to fall further against the dollar as investors become increasingly concerned about the unwillingness of European Union countries to act together to tackle recession.Source: Telegraph Finance | 2 Mar 2009 | 11:01 am Whitbread hit by Premier Inn slipLeisure firm Whitbread sees a slowdown in its sales growth, with fewer people staying at its budget Premier Inn hotels.Source: BBC News | Business | World Edition | 2 Mar 2009 | 11:01 am Opel in talks over government aidGerman carmaker Opel is in talks with the country's economy minister about a cash injection from the government.Source: BBC News | Business | World Edition | 2 Mar 2009 | 10:56 am Bank fears send UK market to six-year lowShares in Britain's leading blue chip companies sank to a six-year low today after HSBC's £12.5 billion cash call dealt a fresh blow to confidence in the banking sector.Source: Latest Business News from Times Online | 2 Mar 2009 | 10:33 am Vivendi acquisitions help to boost revenuesPARIS, March 2 - Vivendi, owner of Activision Blizzard, the world's top video games company, is betting on its Guitar Hero and World of Warcraft games to boost profits this year despite the global economic...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 10:22 am Investment guru Warren Buffett admits to 'unforced errors'Investment guru Warren Buffett admits to 'unforced errors' and dumb investmentsSource: BBC News | Business | World Edition | 2 Mar 2009 | 10:08 am Manufacturers cut workers at record rateBritish factories axed jobs and cut output at a record pace last month as falling demand for goods continued to take a heavy toll on the beleaguered manufacturing sector.Source: Latest Business News from Times Online | 2 Mar 2009 | 9:57 am Candover cuts portfolio value by halfCandover cut the carrying value of its portfolio by half on Monday, as the UK-listed private equity group wrote down a third of its investments to zero, including Gala Coral, the UK's biggest bingo and...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 9:24 am AIB chief admits 'regret' at bad loan decisionsThe chief executive of Allied Irish Bank (AIB), Ireland’s largest lender, today said that he “regretted” the huge sums lent during the climax of Ireland’s economic bubble last year after being forced to write off €1.8 billion of bad loans.Source: Latest Business News from Times Online | 2 Mar 2009 | 9:04 am Global stocks hit 6-year low, dollar surges (Reuters)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 9:00 am EU summit pledges aid for eastern statesEuropean Union governments have rejected a €180bn plan to recapitalise central and eastern European banks from Hungary in favour of a case-by-case approach to the crisisSource: Financial Times - US homepage | 2 Mar 2009 | 8:26 am Stanford CFO declines to cooperate in SEC Probe (Reuters)Reuters - Stanford Financial Group's Chief Financial Officer James Davis, accused with the company's founder Allen Stanford of carrying out a $8 billion Ponzi scheme, has refused to cooperate in the investigation.Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 8:01 am Home entrepreneurs endure isolation, enjoy flexibilityOverhead may be low, but it can be difficult to separate your family life and your work life.For many of the millions of Americans who lost their jobs over the last year, the next step is starting a business. And many of these enterprises are being launched out of the entrepreneurs' homes. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Athletes, steroids and public hysteriaFirst things first: I am not in favor of athletes doping with steroids.Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am How the stimulus will affect small-business taxesLoss carry-back provisions are extended to five from two years for firms whose annual revenue is less than $15 million. Equipment deduction and depreciation also get a boost.Dear Karen: How will the federal stimulus affect my small-business taxes this year? Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Half of nation's hospitals running lossesMany plan to cut services and staff as investment returns worsen and paying admissions decline, research shows.The economic decline is continuing to ravage the nation's hospitals, with half of them operating in the red and many planning service and staffing cuts, two new reports show. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Port cargo levels are sinking fastFebruary imports fall 18.1% in L.A. and Long Beach. Other West Coast harbors see even worse declines.The international trade business is foundering faster than ever seen before, with some U.S. seaports watching cargo traffic fall by more than a third. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am EU leaders reject bid for bailout of Eastern EuropeGerman Chancellor Angela Merkel and other European Union leaders flatly rejected a new multibillion euro bailout for Eastern Europe today, suggesting that additional aid be given to struggling nations...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 8:00 am Filmgoers looking to laugh off tough timesTyler Perry's 'Madea Goes to Jail' is the top-grossing movie for the second week in a row. Comedies take five of the top 10 spots.When it comes to curing the economic blues, laughter still is the best medicine. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Home entrepreneurs endure isolation, enjoy flexibilityOverhead may be low, but it can be difficult to separate your family life and your work life. For many of the...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 8:00 am Executive gets mileage from her imageLynn Tilton is credited with turning around MD Helicopters, and has been amassing an empire through investments. ...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 8:00 am Executive gets mileage from her imageLynn Tilton is credited with turning around MD Helicopters, and has been amassing an empire through investments.Rotor blades and turbine engines were supposed to be the showcase at the annual helicopter convention in Anaheim last week, so pilot James Costa wasn't sure what to make of the crowd surrounding a woman in a leopard-skin dress with knee-high boots. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Building buzz for an eco-boutiqueHow Road Less Traveled can become an eco-destination Chatting with curious shoppers at her Santa Ana eco-boutique,...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 8:00 am AIG may get up to $30 billion more in federal bailoutThe fourth bailout of the giant insurance company is expected to come as it posts a $60-billion loss. American...Source: RSS feed - channel BNPaperBusiness | 2 Mar 2009 | 8:00 am Building buzz for an eco-boutiqueHow Road Less Traveled can become an eco-destinationChatting with curious shoppers at her Santa Ana eco-boutique, Delilah Snell finds herself spending hours answering questions about the uncommon goods she carries: $47-a-gallon soy-based wall paints, biodegradable cutlery and native California seeds, among other items. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Grocers, name-brand food producers at odds over pricesSupermarkets complain that giant food manufacturers' wholesale prices have risen even as commodity costs have fallen.There's a tug-of-war underway over food prices between the nation's supermarkets and giant food manufacturers including Nestle, Unilever and Kellogg. Source: L.A. Times - Business | 2 Mar 2009 | 8:00 am Sony shares outstrip peers after shake-up (Reuters)
Source: Yahoo! News: Business | 2 Mar 2009 | 7:45 am HSBC shares dive 20% on record £12.5bn cash callShares in HSBC tumbled by 20.1 per cent by midday today as City sentiment continued to deteriorate towards a record £12.5 billion cash call by the banking giant.Source: Latest Business News from Times Online | 2 Mar 2009 | 7:32 am Australian stocks: Market at lowest level in five yearsMELBOURNE - The Australian stock market shed 2.8 per cent on Monday to close at its lowest level in more than five years, following heavy falls in the banking and the big mining sectors. At the close, the benchmark S&P/ASX200 index...Source: New Zealand Herald - Business | 2 Mar 2009 | 7:21 am NZ stocks: Market down on global fearsThe global economic backdrop from hell again eroded confidence in the New Zealand share market, which fell 1.618 per cent today. Stories about the bailout of insurance giant AIG heightened the fears about the global finance sector...Source: New Zealand Herald - Business | 2 Mar 2009 | 6:18 am Currency: Dollar plunges to six-year lowThe New Zealand dollar plunged to a six-year low today as investors around the world again sought haven in US dollar assets. The NZ dollar traded as low as US49.12c today. This was a break below the low of US49.65 on February 2. BNZ...Source: New Zealand Herald - Business | 2 Mar 2009 | 5:44 am Tax Tips: Mutual Fund Tax Breaks (Tax Tips)Part of being a smart mutual-fund investor is making sure you walk away with as much profit in your pocket as possible. This means avoiding load funds (usually, anyway) and funds with ridiculously high expense ratios. Most readers of SmartMoney.com are already aware of these pitfalls, but one area where many wise fund investors still stumble is with taxes. For starters, many investors don't pay close enough attention to a fund's tax efficiency. And that isn't the only common mistake. Here are a couple often-overlooked ways to reduce the tax hit to your mutual fund shares: 1. Are You Invested in Foreign Stocks or Mutual Funds?The foreign tax credit is intended to keep those who worked in a foreign country from being taxed on the same income by two different countries. But if you simply invested in some international mutual funds, you may also be able to claim this valuable tax break. Why? Because it's quite likely you paid foreign taxes last year (even though you probably didn't know it). To find out, take a close look at your fund summary statements for 2008. You'll probably have to make some calculations to figure the exact amount of foreign taxes that came out of your account. Fortunately, your fund family should provide you with the information you need to do the math. Usually, they'll give you a figure by which you can multiply the number of shares you own. The payoff is that you're allowed a dollar-for-dollar credit against your U.S. income-tax bill. So while this might seem like a hassle, the extra work is definitely worth the trouble. If you have direct holdings in foreign stocks or bonds, any foreign taxes should show up on your Forms 1099-DIV and 1099-INT. Assuming that 1) all your foreign taxes were on interest and dividends (including those earned via mutual funds), and 2) the foreign taxes amounted to $300 or less ($600 if you file jointly), things are simple. Just claim your credit by entering the foreign tax amount on Form 1040, Line 47. In all other cases, you must file Form 1116 (Foreign Tax Credit) to claim your rightful credit. Consider yourself warned: This form is pretty tricky, so you may want to get professional assistance if your foreign tax hit was substantial. 2. Did You Sell Fund Shares Last Year?If you've invested in a mutual fund, chances are you agreed to reinvest all of your dividends in the fund. It's a pretty painless way to practice dollar-cost averaging. But if you sold some shares last year, don't forget to claim the additional basis from the reinvested dividends in calculating your gain or loss on Schedule D. In other words, because you paid tax on those dividends (even though the cash never actually passed through your hands), the reinvested amounts represent after-tax dollars in the form of additional share basis. For example, say several years ago you invested an initial $2,000 to buy 100 shares in Fund XYZ. During your ownership period, you received a total of $500 in dividends, which were automatically reinvested to buy 20 more shares of the fund. Then last year, you sold all of your shares. In figuring your gain or loss, the correct tax-basis figure for your 120 shares is $2,500 (your $2,000 initial investment plus the $500 reinvested to acquire additional shares). If you screw up and claim only $2,000 of basis, you'll overstate your gain or understate your loss by $500. Then the IRS gets more than it should, and you lose out. Now, your fund company should have provided you with your average basis for all the shares you own, including those acquired by reinvesting dividends. But many investors still overlook this information and use their own (incorrect) figures. So do yourself a favor and take a close look at the year-end statement from your fund family.
SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 2 Mar 2009 | 5:00 am Skeptics Brood on Bad News (Tax Tips)An alphabet soup of hopeful government assistance programs, grim economic data and market gyrations left our pundits perplexed and anxious for a change in pervasively difficult conditions. In recent weeks the Obama administration has announced details about the Troubled Asset Relief Program (TARP), the Term Asset-Backed Securities Loan Facility (TALF) and the Homeowner Affordability and Stability Plan (HASP). On Friday, the Commerce Department said gross domestic product had contracted by 6.2% in the fourth quarter, a bigger decrease than economists were expecting. Meanwhile, Citigroup (C) worked out a deal with the federal government that will put 36% of the company in the hands of regulators. No wonder the market was up and down all week. "The economy seems to be going into shock from all the different rescue plans that Washington’s paramedics are improvising," wrote Ed Yardeni, a skeptic of some White House plans and founder of Yardeni Research. He blames government blunders for the obliteration of billions of dollars of market capitalization of the S&P 500 Bank Composite Index. The benchmark has seen the value of its members decrease 86% to $111 billion from $508 billion this time last year. Yardeni joined a chorus of gloomy voices this week. ISI Group founder Ed Hyman said recent conditions were “overwhelming negative news.” The latest drop in nominal GDP growth, he wrote Friday, was “the weakest in 50 years, and much weaker than the 1974 Great Recession.” Now the government is trying to anticipate any future disasters by performing so-called “stress tests” on almost two dozen banks. ISI policy analysts Andy Laperriere and Tom Gallagher correctly predicted Citi would need more capital and they think that the financial institution won’t be the last to tap government funds. “The vast majority of investors believe ... Bank of America (BAC) [needs cash] too,” they wrote in a recent research note. “We are deeply skeptical that a small capital ‘buffer’ is all that is required to stabilize the financial system.” The bottom line is a bleak, wrote Barry Knapp, U.S. portfolio strategist at Barclays, in a recent note published Feb. 23. “While we are approaching our 1Q09 price target of 750 on the S&P 500, we are not yet ready to conclude that the bear market has ended,” he wrote. “The bottom line is that valuations have taken a turn for the worse. We want to turn bullish, we really do. However, we simply can’t build a compelling case for it yet.” With limited options available to investors, Citigroup’s Tobias Levkovich cautioned Feb. 23 about reaching for apparently obvious solutions. “Dissatisfaction thus far with government policy efforts and bank nationalization concerns have created a new sense of uncertainty that has left most investors dazed and unsure of what to do next,” he said. “Safety trades into the U.S. dollar, gold and Treasurys have been the result, but seem stretched.” But isn’t there any sense of a silver lining? “While still early on, there are a few legitimate signals coming from data that contend some gradual improvements are in the making for the second half of the year,” said Levkovich. Obviously, the second half can’t arrive fast enough. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 2 Mar 2009 | 5:00 am A Real-Estate Play for These Times (Tax Tips)It's easy to understand why anyone would be hesitant to invest in real estate or the stock market these days. But a growing number of experts think there's a way to tiptoe back into both embattled areas‹with the help of exchange-traded funds. ETFs offer a simple way to invest in several companies that trade as one‹which is particularly helpful in tricky areas of the market like real estate. These firms are usually structured as high-dividend-paying Real Estate Investment Trusts, or REITs, which are trading these days well below the value of the underlying properties. Dionisio Meneses, comanager of the Schwab Global Real Estate fund, calls some of the valuations "mind-boggling." Those low valuations are due to fears that commercial property firms could face widespread vacancies and difficulties raising capital from troubled banks. But those fears may be overblown, says Jeff Hanson, president of the asset management firm Grubb & Ellis Realty Investors. Hanson says that while commercial vacancies are expected to rise this year, they won't become "unmanageable" like they were during the rampant overdevelopment of the late 1980s and early 1990s. What's more, many analysts think the government's massive bailout of banks should continue to slowly ease the tension that is restricting capital. That said, this area isn't for the faint of heart. REIT ETFs sank 50 percent last year, and some argue they could fall further. Still, ETFs limit the chances of getting hit by the problems of any single firm. Two particularly diverse options: iShares Dow Jones U.S. Real Estate Index (IYR), which pays a 9.9 percent dividend, and SPDR DJ Wilshire International Real Estate ETF (RWX), which yields 6.3 percent. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 2 Mar 2009 | 5:00 am Govt-guaranteed finance company in receivershipMascot Finance today became the first finance company with the government's retail deposit guarantee to be placed in receivership. That means the New Zealand taxpayer will have to pay up to cover the investors' losses. Mascot...Source: New Zealand Herald - Business | 2 Mar 2009 | 4:30 am HSBC to scale back US consumer finance arm: report (AFP)
Source: Yahoo! News: Business | 2 Mar 2009 | 4:15 am NZ's largest fishing company slashes 180 jobsSealord, New Zealand's largest deep sea fishing company, is cutting as many as 180 land-based jobs in a restructuring of its business. But 50 jobs at sea will be created by the commissioning of another factory freezer trawler. It...Source: New Zealand Herald - Business | 2 Mar 2009 | 4:00 am ANZ economists warn against new housing optimismANZ economists are making cautionary noises about the housing market, after some indications emerged on Friday that general sentiment could be improving. The ASB housing confidence survey for the three months ending January found...Source: New Zealand Herald - Business | 2 Mar 2009 | 3:00 am Wellington Drive raises $10.7m in share saleAuckland-based maker of energy efficient motors Wellington Drive Technologies (WDT) says it has successfully raised $10.75 million through the sale of shares. A rights issue which closed on Friday raised $9.1m of the $11.4m sought,...Source: New Zealand Herald - Business | 2 Mar 2009 | 2:30 am Fletchers' Penrose site changes handsFletcher Building's head office complex in Auckland has been sold for $36 million. Bayleys Real Estate says it is the biggest commercial property sale in New Zealand so far this year. The sale includes a number of office and...Source: New Zealand Herald - Business | 2 Mar 2009 | 2:30 am Chaos theory helps Fonterra's Oz chiefJohn Doumani, managing director of Fonterra Australia New Zealand, is not afraid of chaos. "I come from a crazy, loud, wonderful Lebanese family and I mention that only because it has shaped, I think, who I am in terms of my life,"...Source: New Zealand Herald - Business | 2 Mar 2009 | 2:00 am Japan's Nikkei stock index down 3.2 percent (AFP)
Source: Yahoo! News: Business | 2 Mar 2009 | 1:35 am Japan's Nikkei stock index down 3.2 percent (AFP)
Source: Yahoo! News: Stock Markets News | 2 Mar 2009 | 1:35 am Nine-day plan must protect pay: unionsThe nine-day working fortnight will only be feasible for workers if the Government helps cover their lost wages, say unions. Helen Kelly, the president of the Council of Trade Unions, said the Jobs Summit's leading idea would become...Source: New Zealand Herald - Business | 2 Mar 2009 | 1:30 am AstraZeneca tried to 'bury' bad news on Seroquel drugAstraZeneca tried to “bury” adverse medical studies about Seroquel, its blockbuster drug, internal company memos released in an American court case have revealed.Source: Latest Business News from Times Online | 2 Mar 2009 | 12:00 am Bank of England set to pump cash into economy to avoid deflationThe Bank of England is set this week to begin “printing money” in a ground-breaking move that will mark its most forceful action yet to curb the slump in the economy.Source: Latest Business News from Times Online | 2 Mar 2009 | 12:00 am Motorola upbeat on troubled mobile unitMotorola expects the performance of its troubled mobile phone business to start improving in the second quarter, according to Greg Brown, joint chief executive of the US handset makerSource: Financial Times - US homepage | 1 Mar 2009 | 11:40 pm TPG in bankruptcy aid clashTPG, the private equity firm, is stirring controversy on Wall Street by offering to provide bankruptcy financing for a company that it owns, a strategy that could put it in the ironic position of being paid before some other creditorsSource: Financial Times - US homepage | 1 Mar 2009 | 11:37 pm Rogue code led to Gmail shutdownA rogue piece of software, which triggered a cascading failure through Google's data centres around the world, led to the shutdown of its Gmail system last week.Source: Financial Times - US homepage | 1 Mar 2009 | 11:37 pm UN scours corridors for lost artStaff are scouring corridors to try to locate valuable art works that have gone missing as the United Nations prepares to vacate its New York headquarters for a four-year, $2bn renovationSource: Financial Times - US homepage | 1 Mar 2009 | 11:37 pm 10 Fortune 500 Companies That Started With Next to NothingIn the contemporary marketplace, most bigger, new businesses start as a result of years of market research, planning and strategic investment. Venture capitalists and big-money consultants get together with ideas that are based on years of experience and expertise, and they work in order to maximize profits. While, there are still millions of entrepreneurs and people that start their own successful companies, they are typically small to medium-sized at best, or they reach their growth capacity within several years. There are, however, some marked examples of businesses that started out organically, as an idea of one or several individuals with little or no experience, and/or little or no money. The following examples are businesses which have grown so large to be included in the Fortune 500, or the world’s largest 500 companies - but which have started from the humblest beginnings. They are “Rags to Riches” stories of unique brands, started by unique individuals that only have accumulated wealth and vast market share, but have created their own niche and never looked back: Whole Foods Market
In 1978, twenty-five year old college dropout John Mackey and twenty-one year old Rene Lawson Hardy, saved and borrowed money from family and friends to open the doors of a small natural foods store in Austin, Texas. Within a year of opening the store, the couple was evicted from their home for using their apartment storage for the store. Homeless and with no place to go they decided to save costs by moving and living at their store full time. Since their store “Saferway” was zoned for commercial use only, there was no shower stall. According to the company’s website, the two instead bathed in the Hobart dishwasher, which had an attached water hose. Eventually Mackey and Hardy moved out of the store and into their own place, and within two years managed a merger with another natural foods store to open up the first Whole Foods Market in Austin, Tx on September 20, 1980. With the markets floor space at 10,500 square feet and with 19 employees, Whole Foods Market became the largest of its kind. In 1984, Whole Foods began expanding to other cities by building stores from the ground up and by acquiring other natural foods stores around the country. In 1992 the company went public, and in 2008 posted $6.5 billion in revenues and $3.2 billion in assets. From the humble begginings in Austin, Tx in 1978, to being ranked 369 on the Fortune 500, Whole Foods Market is continually rising to the challenge of the market and providing a unique service to America. Molson Coors
In 2005, Coors Brewing Company merged with Molson to become the fifth largest brewing company in the world. Though Coors has maintained success throughout the 20th and 21st centuries, the road was long and began with the humble story of a German born immigrant by the name of Adolf Coors. Coors became an orphan at the age of 15 and had to support his younger siblings by working at a local brewery in a small Prussian town, in what is now the modern day city of Wuppertal, Germany. Adolph continued to work in the brewing industry until he was 21, when war and unrest in his country caused him to seek opportunity in America. He then stowed away on a ship, and arrived in the United States in 1868 with no money and no job. From there Coors headed west to look for employment; he found one odd job after another, and supported himself until he would cross paths with another German immigrant in Golden, Co. Based on Adolf Coors initial investment of $2000 in 1872, his company has grown to be one of the largest brewing companies in the world. Coors’ claim to their success in the brewing business is based on what they refer to as the perfect ingredient: water from the Rocky Mountains. Since day one, Coors Brewing Company has marketed the beer in this way. Today, Coors now has $6.2 billion in revenue and $13.5 billion in assets. Coors Brewing Company is another example of an immigrant success story, where persistence, timing, and smart investments can pay off in the long run. Apple
Most remember the scene in Forest Gump when he explains that he never has to worry about money again because of his investment in the fruit company called “Apple.” Well the truth is that for many investors this was the case. Like many tech companies, Apple started in the garage of a young man by the name of Steve Wozniack. Wozniack was an electronics hacker, and he and his long time friend Steve Jobs had this idea to create a personal computer. In 1976, the two approached a local electronics store to see if they would be interested in buying a personal computer that Wozniack had built. The owner of the store became interested and said he wanted 50 units. Wozniack and Jobs, both penniless at the time, went to a local computer parts supplier and ordered the parts on credit, based on their first purchase order. This was the start of Apple. Though the company has had its ups and downs in its 30-year history, Apple has proven to be the company that produces the industry standard time and time again. From the garage of Steve Wozniack to being ranked 103 on the Fortune 500, Apple continues to grow and prove to be a wise investment for those looking to expand their portfolios to include “fruit companies.” Nordstrom
In 1887, a 16-year-old boy form Sweden left his home for the promise of America. He arrived in New York City with only five dollars to his name, and unable to speak a word of English. This boy’s name was John W. Nordstrom. His first years in America were surprisingly tough for the young immigrant; he labored in mines and logging camps just to make survive. Nordstrom however persisted, and took manual labor jobs that allowed him to continually move west towards the Pacific Ocean. After struggling for ten years, the 26-year-old Nordstrom picked up the daily newspaper to find that gold had been discovered in Alaska. As the legend goes, he made plans the very next morning to head north to discover his fortune. After two years of hard labor, difficult terrain, and relentless competition, Nordstrom experienced moderate success, and was able to save nearly $13,000. He then moved to Seattle, Wa to invest his small fortune. In 1901, Nordstrom opened his first shoe store, just 14 years after coming to America. Throughout the 20th Century Nordstrom grew from the one shoe store in downtown Seattle to what is now a multi-billion dollar retail empire. Dell
Dell was at one time the largest seller of personal computers and servers in the world. Presently Dell is ranked 34 on the Fortune 500, and in 2008 boasted revenues of $61 Billion with assets toping $27.5 billion. The path to the success that Dell now enjoys began with an idea and a $1,000 investment. While attending the University of Texas in 1984, Michael Dell founded the company as PCs Limited. Initial operations of Dell’s company ran from Dell’s dorm room, until he decided to drop out of college to run his company full time. In 1985, the company produced the first computer of its own design, and by 1988 had an initial public offering that valued the company at nearly $80 million. Electronic Data Systems
In 1962, former presidential candidate Ross Perot founded EDS with $1000. Perot chose the name Electronic Data Systems from potential names he scribed on the back of a pledge envelope during a church service. Perot had been a salesman for IBM before starting EDS, and he was rejected 77 times before EDS acquired its first client. From processing computer tapes and data from their first client to running the IT arm of hundreds of companies a year after its creation, EDS quickly became the country’s leader in providing IT services to American companies. By the time EDS went public in October 1968, the market value of EDS would be listed at $378 million. Soon thereafter, EDS expanded its operations globally. Today, EDS is ranked 115 on the Fortune 500, and boast revenues of $22.1 billion and has assets topping $19.2 billion. Perot’s experience was perhaps one of the quickest ascensions to wealth on this list. Mattel
Shortly after World War II, newly-married Ruth and Elliot Handler decided to start a business out of the garage of their Southern California home. Though Mattel is best known as a toy maker, the brand initially produced and sold picture frames. Shortly after opening for business, Handler began making dollhouse furniture with the scraps left over from the picture frames. The couple would soon find out that the toy business was much more lucrative than picture framing. The Handlers had little business experience and even less capital, but the demographics of a baby boom, plus a virtual toy less marketplace afforded the couple a unique opportunity to carve out a niche. Mattel would have their first hit toy in 1947 with the “Uke-A-Doodle,” a miniature plastic ukulele, that proved to be an immediate success that drew large orders. By 1955 Mattel had grown enough to become a sponsor of the new television program, “The Micky Mouse Club.” Soon after, Mattel released their iconic toy: Barbie. In 1963 the company went public. From the humble beginnings in the garage to the New York Stock Exchange, Mattel is now ranked 413 on the list of Fortune 500 companies. In 2008, Mattel reached $6 Billion in revenues and reported 4.8 billion in assets. Wrigley
In the spring of 1891, the 29-year-old William Wrigley Jr. moved from Philadelphia to Chicago with only $32 to his name. Soon after arriving in Chicago, Wrigley began selling soap. As an incentive to the customers, if they purchased his soap, he would give them a free can of baking powder. Soon baking powder proved to be more popular than the soap he was selling, so he switched his business. A year later, in 1892, Wrigley used chewing gum as an incentive for buying his baking powder. Again, chewing gum proved to be more popular than baking powder, and so he switched business again. The first brand of chewing gum Wrigley produced was Juicy Fruit in 1893. Through his personal hard work as a salesman and his ability to advertise, Juicy Fruit would soon become the number 1 selling chewing gum in the country. Wrigley went public in 1919, and since then has seen ups and downs in the market. Wrigley has remained a staple, and perhaps the most visible brand, in the chewing gum business throughout now into the 21st century. A globally distributed brand, Wrigley is one of the the largest gum company in the world, and one of the most successful businesses - in any industry- in the world. In 2008, Wrigley posted revenues of $5.4 billion with a recorded over $5.2 billion in assets. Starbucks
In 1971, three academics each invested $1350 of their own money into the first Starbucks located in downtown Seattle. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker opened the store called Starbucks Coffee, Tea, and Spice. Shortly after opening, and to continue their operations, the three borrowed another $5000 from the local bank. The three partners wanted to pattern their business after Peet’s Coffee and Tea, in Berkley, Ca, which sold dark roast coffee beans and taught customers how to grind the beans and make freshly brewed coffee at home. It wasn’t until the early 1980’s when Howard Shultz entered the picture that Starbucks began focusing not on selling coffee beans, but on making coffee, tea, and espresso drinks for customers inside the store. Though there was much hesitation from the founding partners, this proved to be the business model Starbucks would follow. Starbucks went public in 1992, and proved to be one of the most successful IPOs that year. With the infusion of public capitol, Starbucks began to strategically expand all over the US, at one point, at the rate of opening one new store per day. Though Starbucks has seen experienced a decline in popularity in the last several years, the brand’s exponential growth is impressive. In 2008, Starbucks was ranked 277 on the Fortune 500. In the same year Starbucks posted revenues of $9.4 billion and recorded assets of $5.3 billion. eBay Media
Contrary to popular belief, eBay was not created to find Pez Dispensers for the founder’s wife. This was revealed in Adam Cohen’s 2002 book, The Perfect Store, and confirmed later by eBay. The story was fabricated by a public relations manager in 1997 to interest the media and create a public buzz. Regardless of the legitimacy of the story, media interest and public buzz was created, helping to propel the brand into the minds of consumers (and in this case, would-be merchants and barterers as well). In reality, the first item to ever sell on eBay (then AuctionWeb) was a broken laser pointer, by the French born Iranian immigrant and eBay founder, Pierre Omidyar. The transaction closed in September of 1995, not long after Omidyar finished the code for the website in the living room of his Silicon Valley home. By June 1996, Omidyar’s website had generated around $10,000 in revenue and Omidyar hired his first employee. Soon after this Omidyar left his day job as a computer programmer. By the end of 1996 the total value of items sold on ebay reached $7.2 million and had over 41,000 registered users. With over 250,000 individual transactions reached in 1996, by 1997 eBay began facilitating over 200,000 transactions a month. This caught the attention of a venture capital group who then invested $5 million in the company. From an idea in an average computer programmers living room in 1995 to being ranked 326 on the list of the Fortune 500 in 2008, eBay is the quintessential American success story. Source: Business Pundit | 1 Mar 2009 | 10:30 pm Brown to engage Obama on global scaleGordon Brown's meeting with Barack Obama this week is being portrayed by British officials as a make-or-break opportunity to persuade the new US administration to engage in international efforts to tackle the recessionSource: Financial Times - US homepage | 1 Mar 2009 | 8:44 pm Worst year for Buffett's BerkshireWarren Buffett conceded that his holding company turned in its worst performance as the financial crisis drew the world's economy into a deepening recessionSource: Financial Times - US homepage | 1 Mar 2009 | 7:34 pm New month for Wall Street, but old problems linger (AP)
Source: Yahoo! News: Stock Markets News | 1 Mar 2009 | 6:47 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
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A positive note on the big telcos from John Hodulik at UBS.
AT&T (T) got a major upgrade this morning as Goldman Sachs moved it to “buy” and added the stock to its Conviction Buy List.
These are some of the top pre-market analyst upgrades from Wall Street this Monday morning with well over two hours until the open:
These are the top pre-market analyst downgrades we have seen very early this Monday morning with well over two hours until the open:
Clearly feeling the need to debase themselves further after their role in the subprime mortgage mess, the two major credit agencies are signaling that they will hold their ratings on AIG (AIG) steady once it has concluded a new arrangement with the federal government for more aid .
Gold has traditionally served as a safe haven for investors in times of economic turmoil or as a store of value during inflationary periods. The Economist 
Last year, Toyota (TM) announced with pride that it had sold one million units of its Prius worldwide. The car is a hybrid and one of the most successful vehicle launches in the Japanese company’s history.
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