|
|
|
|
East Europe banks back economiesThe central banks of the Czech Republic, Bulgaria, Poland, Romania and Slovakia issue a joint statement defending their economies.Source: BBC News | Business | World Edition | 4 Mar 2009 | 1:00 pm Fresh stimulus expected in ChinaChina is preparing additional stimulus measures to boost its economy and is expected to unveil them at the opening session of the National People's Congress on ThursdaySource: Financial Times - US homepage | 4 Mar 2009 | 12:52 pm Stock futures point higher after 5 days of selling (AP)
Source: Yahoo! News: Stock Markets News | 4 Mar 2009 | 12:47 pm BJ's Wholesale Club 4Q profit up on settlements (AP)AP - BJ's Wholesale Club Inc. said Wednesday that its fiscal fourth-quarter profit rose 5 percent partly on favorable state income tax audit settlements.Source: Yahoo! News: Business | 4 Mar 2009 | 12:46 pm 'Seize moment' Brown to urge USGordon Brown is expected to urge the US to "seize the moment" when he addresses both houses of Congress.Source: BBC News | Business | World Edition | 4 Mar 2009 | 12:46 pm Opening Bell: 03.04.09Senate To Grill UBS AG Officer (Reuters) "The Michigan lawmaker told reporters in a briefing on Tuesday that the hearing will also focus on a U.S.-Swiss tax treaty he described as having "very, very limited value." He said, "You can't rely on the Swiss. That's the bottom line."" In related news, Bloomberg has it that UBS has announced a new Chairman: Kasper Villiger, former Finance Minister. "Kurer's departure comes less than a week after UBS called former Credit Suisse Group AG Chief Executive Officer Oswald Gruebel, 65, out of retirement to replace CEO Marcel Rohner. Villiger, 68, will step down from board positions at Swiss Reinsurance Co, Nestle SA and Neue Zuercher Zeitung if elected by shareholders on April 15, the Zurich-based bank said today." The Unequal Nature Of Recessions (NYT)
The Wall Street Journal has identified most of the top 10 executives and their compensation levels from documents and interviews with people familiar with Merrill's compensation. Merrill's 10 highest-paid employees got a total of $209 million in cash and stock in 2008, up slightly from $201 million paid to the top 10 a year earlier, according to the figures reviewed by the Journal. In 2007, 28 Merrill employees were paid more than $10 million. That total doesn't include Merrill's private-client group, where its brokers work. Treasury To Drop Details On Mortgage Bailout (FT) 1) Increased funding to Mae/Mac to increase lending. 2) Low cost re-fi's for 4/5MM homeowners who took a bath on home values. 3) Incentives to servicers to modify mortgages. It's the third part of the plan that's drawing the heat, as FT puts it: "One concern is that servicers who respond to government incentive payments could be exposed to legal risk from disgruntled investors who bought securities backed by mortgages. These investors could claim that servicers eased the terms of mortgages to collect the government payment rather than because a modification was in the investors' best interest, lawyers and restructuring experts said." Hairpiece's Lawsuit Takes A Vacation (Reuters) The agreement with the project's lenders, a group led by Deutsche Bank AG, gives the parties at least 90 days to negotiate a settlement over the 92-story development, where sales have fallen short of what is required to pay back a $640 million construction loan, the Journal said." 
Source: Dealbreaker | 4 Mar 2009 | 12:45 pm Beholden to the lender on the doorstepSubprime borrowing is on the rise reports Abigail Townsend.Source: Telegraph Finance | 4 Mar 2009 | 12:40 pm U.S. planned layoffs in February fall from 7-year peakNEW YORK (Reuters) - Planned layoffs at U.S. firms fell 23 percent in February from January's seven-year peak, but remained well above long term averages as the protracted U.S. recession took a heavy toll on employment, a report showed on Wednesday.Source: Reuters: Business News | 4 Mar 2009 | 12:35 pm Pound rises after pick up in services and consumer confidenceSterling strengthens after surveys showed an unexpected improvement in services sector activity and a pickup in UK consumer confidence.Source: Telegraph Finance | 4 Mar 2009 | 12:32 pm Authorities raid Ukraine gas firmUkrainian security service agents raid the head office of the state energy firm, Naftogaz, as part of a criminal inquiry.Source: BBC News | Business | World Edition | 4 Mar 2009 | 12:32 pm Fewer job cuts in FebruaryFor Americans reeling from the harsh job news this winter, there may be a sign that the worst is over, as indicated by a key employment report released Wednesday.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 12:32 pm Costco and Big Lots post lower quarterly profitsNEW YORK (Reuters) - U.S. retailers Costco Wholesale Corp and Big Lots reported lower quarterly profit on Wednesday as cautious shoppers avoided splurging on discretionary items, like furniture or jewelry, and stuck to buying basics, like food.Source: Reuters: Business News | 4 Mar 2009 | 12:31 pm Pakistan hunts for Lahore gunmenRobert Mueller, the head of the FBI, conferred with Pakistani officials as police hunted for the gunmen who mounted an audacious attack on Sri Lanka's cricket team in LahoreSource: Financial Times - US homepage | 4 Mar 2009 | 12:28 pm Obama to test home loan do-oversMortgage modifications have a bad rap, yet President Obama is depending on them to stop the foreclosure crisis.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 12:27 pm BJ's Wholesale quarterly profit risesNEW YORK (Reuters) - BJ's Wholesale Club Inc reported a better-than-expected rise in quarterly profit on Wednesday after as shoppers headed to its clubs for low prices on staples like fresh food, prepared meals and paper towels.Source: Reuters: Business News | 4 Mar 2009 | 12:27 pm Tesco wins fight over store competition testTesco today won a landmark appeal against a new test proposed by competition watchdogs that threatened to prevent it from opening new stores or expanding existing ones.Source: Latest Business News from Times Online | 4 Mar 2009 | 12:25 pm Obama: Save $40 billion by cutting wasteRead full story for latest details.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 12:17 pm BJ's Wholesale Club 4Q profit up on settlementsBJ's Wholesale Club says its fiscal fourth-quarter profit rose 5 percent partly on favorable state income tax audit settlements. The nation's third-biggest warehouse club says its...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:17 pm Kaupthing: Thousands of savers still waiting to get their money backAlmost 5000 savers with Kaupthing Singer ? Friedlander are still waiting to get their money back - five months after the Icelandic bank went into administration.Source: Telegraph Finance | 4 Mar 2009 | 12:13 pm Obama budget director urges patience with recoveryPresident Barack Obama's budget director says the administration inherited "a big mess" economically and the public is going to have to be patient as a rescue plan goes forward. Peter...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:13 pm UBS chairman Kurer to step downPeter Kurer, whose standing has been eroded by the US investigation into the Swiss bank's role in tax evasion cases, will be replaced by former Swiss finance minister and elder statesman Kaspar VilligerSource: Financial Times - US homepage | 4 Mar 2009 | 12:13 pm Troubled ITV cuts jobs and costsITV announces it is cutting 600 jobs across its businesses, and plans to make other "significant" savings.Source: BBC News | Business | World Edition | 4 Mar 2009 | 12:09 pm U.S. mortgage demand off before Obama rescue detailsNEW YORK (Reuters) - Applications for loans to buy U.S. homes and to refinance existing mortgages fell for the second straight week, the Mortgage Bankers Association said on Wednesday, as consumers awaited for specific details on President Barack Obama's housing stimulus plan.Source: Reuters: Business News | 4 Mar 2009 | 12:09 pm U.S. mortgage demand off before Obama rescue detailsNEW YORK (Reuters) - Applications for loans to buy U.S. homes and to refinance existing mortgages fell for the second straight week, the Mortgage Bankers Association said on Wednesday, as...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:09 pm U.S. mortgage demand off before Obama rescue details (Reuters)Reuters - Applications for loans to buy U.S. homes and to refinance existing mortgages fell for the second straight week, the Mortgage Bankers Association said on Wednesday, as consumers awaited for specific details on President Barack Obama's housing stimulus plan.Source: Yahoo! News: Business | 4 Mar 2009 | 12:09 pm BP shares rise on pledge to maintain dividendShares in BP rose by nearly 3 per cent today after the oil major indicated it will not cut its dividend but instead freeze the payout for the first time since 1999.Source: Latest Business News from Times Online | 4 Mar 2009 | 12:06 pm View-Master 3-D travel reels head into the sunsetAmber LaPointe's introduction to one of the country's greatest tourist attractions came from small square pictures on a white wheel. "It was like you could look into a world away," said...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:05 pm Costco and Big Lots post lower quarterly profitsNEW YORK (Reuters) - U.S. retailers Costco Wholesale Corp and Big Lots reported lower quarterly profit on Wednesday as cautious shoppers avoided splurging on discretionary items, like...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:03 pm Costco and Big Lots post lower quarterly profits (Reuters)
Source: Yahoo! News: Business | 4 Mar 2009 | 12:03 pm Democrats reach deal on mortgage relief bill (AP)
Source: Yahoo! News: Business | 4 Mar 2009 | 12:03 pm Democrats reach deal on mortgage relief billFor key moderate Democrats in the House, giving debt-strapped homeowners the right to seek mortgage modifications in bankruptcy court had to be a last resort. So they wrote a compromise...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:03 pm UPDATE 1-Research seen risk to Astra's Nexium, not Plavix* New study highlights danger of using Plavix with PPI drugsSource: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:02 pm New Gold Inc. and Western Goldfields Inc. Announce Business Combination Building a Leading Intermediate Gold Producer(All figures are in US dollars unless otherwise stated) VANCOUVER, March 4 /PRNewswire-FirstCall/ - New Gold Inc. ("New Gold") (TSX and NYSE Alternext -...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:00 pm Actimize, A NICE Company, Positioned in Leaders Quadrant of Magic Quadrant for Web Fraud DetectionEvaluation Based on Completeness of Vision and Ability to Execute NEW YORK, March 4 /PRNewswire-FirstCall/ -- Actimize, a leading provider of transactional risk...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:00 pm Stock Preacher Issues Technical Trade Alerts on: AA, AIG, AKS, BAC, BRK.A, CATVALLEY COTTAGE, N.Y., March 4 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of...Source: RSS feed - channel BNewsBusiness | 4 Mar 2009 | 12:00 pm Stocks to try again to end slideWall Street will take another stab Wednesday at halting the market slide that has left the Dow and S&P 500 at their lowest levels in about 12 years.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 11:57 am Jobs threat at Caerphilly plantThe closure of an aluminium sheet metal mill and a car parts factory is expected to result in around 560 job losses.Source: BBC News | Business | World Edition | 4 Mar 2009 | 11:56 am Eurotunnel to pay first dividendChannel Tunnel operator Eurotunnel will pay a dividend for the first time in its 23-year history.Source: BBC News | Business | World Edition | 4 Mar 2009 | 11:49 am Budget hopes meet bailout ragePresident Obama's economic A-team went to Capitol Hill on Tuesday to address questions about the administration's ambitious budget request.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 11:49 am Several potential bidders for GM's Saab: sources (Reuters)Reuters - General Motors' Saab brand has received interest from several potential bidders including China's Geely Automobile (0175.HK) and Dongfeng Motor Group (0489.HK), sources with direct knowledge of the sales process said on Tuesday.Source: Yahoo! News: Business | 4 Mar 2009 | 11:45 am Several potential bidders for GM's Saab: sourcesNEW YORK/DETROIT (Reuters) - General Motors' Saab brand has received interest from several potential bidders including China's Geely Automobile and Dongfeng Motor Group, sources with direct knowledge of the sales process said on Tuesday.Source: Reuters: Business News | 4 Mar 2009 | 11:45 am World stocks rebound on China stimulus hopes (AP)
Source: Yahoo! News: Stock Markets News | 4 Mar 2009 | 11:43 am Decision time: New vs. used carsUsed cars are still a better buy over new, but with all the incentives on the table, the value gap is closing.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 11:41 am Stock futures point to higher Wall Street open(Reuters) - Stock futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes were up 1.5-2 percent on Wednesday, pointing to a higher start on Wall Street.Source: Reuters: Business News | 4 Mar 2009 | 11:40 am Dollar shortage fuels US currency's advanceThe dollar rose to a fresh three-year high against a basket of currencies and hit a four-month peak against the yen on Wednesday as concerns over the health of the global economy continued to drive investors towards US assets and the dollar.Source: Financial Times - US homepage | 4 Mar 2009 | 11:33 am China Goes Nowhere Without The US
The rally is based on a mirage. China’s economy cannot grow at any significant rate without the US, Japan, UK, and EU consumers returning to the marketplace. The idea that China can dig itself out of the hole of the global economic recession may be based, in part, on stimulus money that the communist central government is throwing at industry to keep it afloat in the world’s most populous nation. Capital injected into the economy may even lead to spending by the Chinese middle class. This group has helped build the nation’s economy by consuming a good portion of China’s own production. But, the effects of the stimulus will be short-lived. As demand for China’s exports drops, GDP and factory output have to be effected. China’s middle class may actually be shrinking as factories close and workers return to the rural regions. There will be no Chinese miracle. The deck of the global economy is stacked against the country. Douglas A. McIntyre       Source: 247 Wall Street | 4 Mar 2009 | 11:32 am Stock markets recover despite corporate gloom (AFP)
Source: Yahoo! News: Stock Markets News | 4 Mar 2009 | 11:31 am China stocks surge on spending planRead full story for latest details.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 11:28 am Chinese shares jump on hopes of new stimulus packageThe Shanghai Stock Exchange jumped more than 6pc on hopes that China will unveil a second economic stimulus package in addition to the £400bn it has already pledged.Source: Telegraph Finance | 4 Mar 2009 | 11:24 am Invest better? Sure, but savings are keyGiven the havoc the market has wreaked on your 401(k) over the past year, you may be wondering what you might have done differently to stay in better shape for retirement.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 11:21 am Tesco wins key appeal over 'illfounded' competition testThe supermarket group has won a key appeal against a competition test that could have hobbled its future UK growth.Source: Telegraph Finance | 4 Mar 2009 | 11:19 am Google (GOOG) Admits It Business Is Challenged By Recession
Eric Schmidt, the search company’s CEO, made downbeat comments about the economy at a conference yesterday. Media reports quote him as saying, “I view the situation as pretty dire.” Most CEOs don’t make comments about the broader economy unless they are signaling that their own results will be hurt by it. Since every other category of advertising, including online display, is being hit extremely hard by the recession, it would make sense that search marketing is not immune. Google now trades at $325, down from a high of $747 in November 2007. It hit a low of $247.30 this last November. According to First Call, the lowest EPS estimate for Q1 among 33 analysts covering the company is $4.57, which would be down from $4.84 in the same quarter a year ago. The lowest estimate for revenue is $3.81 billion, a slight increase compared to Q1 2008. Schmidt is telling the market his company will miss its numbers. It will be the last big media company to be crushed by the recession, but it will be crushed. Douglas A. McIntyre Tagged: GOOG      Source: 247 Wall Street | 4 Mar 2009 | 11:19 am Japan clears cash hand-out billJapan passes legislation to give a cash hand-out to every resident in an attempt to boost the recession-hit economy.Source: BBC News | Business | World Edition | 4 Mar 2009 | 11:17 am EU exec amends Microsoft antitrust monitoringBRUSSELS (Reuters) - The European Commission said on Wednesday that it would use ad hoc technical consultants instead of a "monitoring trustee" to ensure software giant Microsoft complied with a 2004 antitrust decision.Source: Reuters: Business News | 4 Mar 2009 | 11:13 am Eurotunnel pays first dividend since 1987 floatEurotunnel is to pay its first-ever dividend to its long-suffering shareholders, it revealed today.Source: Latest Business News from Times Online | 4 Mar 2009 | 11:01 am 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 | 4 Mar 2009 | 11:01 am A Waste Of Effort: Amazon (AMZN) To Market Books On Apple (AAPL) iPhone
That is not stopping Amazon (AMZN) from marketing its ebooks on the Apple handset. According to The Wall Street Journal, “Amazon.com Inc. plans to release a program Wednesday for reading electronic books on Apple Inc.’s iPhone, extending Amazon’s sales of digital books to devices beyond its Kindle e-book reader.” Magazine and newspaper publisher Hearst recently released its own publication reader and Dow Jones is marketing products to allow people to see The Wall Street Journal on the small screen. So far, Amazon’s sales of its Kindle ebook reader have been modest. Estimates put units sold in the fourteen months since the device was introduced at 500,000. That’s not much for a product endorsed by Oprah. Analysts would be wise to remember that most books are read by old people. Readers under 30 are scarce. They were raised on spending time on PCs and playing video games. Many are under-educated and can barely read at all. Asking people who wear reading glasses to spend a lot of time trying to make it through a book using a small screen is not much of a business. Douglas A. McIntyre Tagged: AAPL, AMZN      Source: 247 Wall Street | 4 Mar 2009 | 10:55 am Madoff revealed as 'cold-hearted control freak'Bernard Madoff was a cold-hearted control freak who ripped off friends’ widows weeks after their funerals and ruled his family with fear, according to a revealing new report published today.Source: Latest Business News from Times Online | 4 Mar 2009 | 10:46 am Merrill Lynch: Bankers Deserve $10 Million
What is not terribly prominent in the article is that the people who were paid the big money probably earned it. Merrill may have lost tens of billions of dollars throughout 2008, but the figures would have been worse if some of its profitable divisions had not made large contributions. It’s just pay-for-performance. Beating up the successful bankers in the media is a waste of newsprint. Douglas A. McIntyre Tagged: BAC      Source: 247 Wall Street | 4 Mar 2009 | 10:39 am Savings: Big interest rates from small building societiesWealth Workout: Smaller building societies often pay the best interest rates so it's worth looking beyond the high street banks.Source: Telegraph Finance | 4 Mar 2009 | 10:37 am FTSE 100 rallies after sharp fallsThe index gained more than 2pc in early trading on hopes that China will unveil a fresh economic stimulus package.Source: Telegraph Finance | 4 Mar 2009 | 10:34 am Sainsbury's buys 24 Coop storesJ Sainsbury the supermarket has bought 24 stores from the Coop for £83m the retailer said today. Sainsbury's will spend £45m converting the stores to its own format.Source: Telegraph Finance | 4 Mar 2009 | 10:29 am Indications: U.S. stock futures bounce off multi-year lowsU.S. stock futures swung higher Wednesday, with hopes that China could lead a worldwide economic rebound helping markets bounce off multi-year lows.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 10:28 am ITV to cut jobs, halt dividend after $3.6 billion lossLONDON (MarketWatch) -- Troubled U.K. broadcaster ITV said Wednesday that it will scrap its dividend and cut another 600 jobs after reporting an annual loss of 2.56 billion pounds ($3.59 billion).Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 10:24 am Stock futures point to higher Wall Street open (Reuters)
Source: Yahoo! News: Business | 4 Mar 2009 | 10:23 am Stock futures point to higher Wall Street open (Reuters)
Source: Yahoo! News: Stock Markets News | 4 Mar 2009 | 10:23 am France Telecom's 2008 profit fell 35%; operator lifts dividendFrance Telecom on Wednesday reports a 35% drop in 2008 net profit as it write downs the value of goodwill and pays more tax, but lifts its dividend and says it expects to generate 8 billion euros a year in free cash flow until 2012.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 10:22 am UBS boss replaced after one yearThe chairman of Swiss banking giant UBS steps down after just one year in the job, following record losses.Source: BBC News | Business | World Edition | 4 Mar 2009 | 10:18 am Can The US Economy Eat Eight Million Jobs This Year?
According to MarketWatch, the average forecaster thinks the economy shed 640,000 jobs last month. Some of the estimates are well over 700,000. The impression that the employment situation is getting worse was confirmed by Ben Bernanke’s comments testimony to the Senate yesterday. Analysts may admit to a frightening February unemployment rate, but most either believe that the economy is going to get better or don’t want to say in public what they think. While it is comforting to claim that the February numbers will be a bottom for employment erosion, that may not be the case. The joblessness rate could thunder higher between now and year-end. During the 1980 to 1982 recession, unemployment went from 7.9% in October 1981 to 10.1% the following September. Over the two months after that it hit 10.8%. The notion that 10% unemployment will not arrive until next year, if it comes at all, is bogus. The proposition that the stimulus package and new budget will create jobs may be true. It is also true that not enough money will reach companies which actually have payrolls to have much impact on their hiring this year. No one knows whether the programs will work. Since they are untested, particularly in an economy this large that is destroying itself this fast, trying to assess their chances of success is as tough as making a winning wager on which dog team will win the Iditarod. The most important business dynamic that works against job creation in an economy dropping this quickly is the fact that every worker is a consumer. Layoffs are a vicious cycle that undermine the major pillar of any expansion. Consumer confidence drives the process that is the largest single component of GDP. In this recession, the trouble is compounded by an unprecedented lack of access to credit because of housing prices and the near-failure of the banking system. The other root cause that bedevils any attempt to improve the job situation is that private enterprise is suffering from an unusually rapid loss of earnings. Corporate bankruptcies are beginning to rise sharply and even companies which have been considered rock solid such as GE (GE) and Microsoft (MSFT) admit that their core businesses are being hurt badly and will not guess about when the situation will improve. Large companies have gotten into the habit of saying that they cannot forecast earnings because they have “limited visibility.” In most cases that means they cannot predict their sales beyond the current quarter. The awful result of doing the math about job loss is that the monthly average increase in unemployment this year could be 650,000 to 700,000 jobs. Between the end of last year and next New Year’s eight million people could be put out of work. The fact that the number is staggering does not make it improbable. The government’s plan to create jobs is not set up to cope with a situation where jobs are lost at the rate of two million a quarter. Even advocates of tax cuts would have to admit that the money that it would add to business and consumer wallets would not make a great deal of difference in the next several months. That may be academic. The Administration is proposing a modest cut for most people, but it is just that—a modest cut. Businesses which will be taxed at a higher rate will have to decide whether that drain effects how many people they will have on their payrolls or not. In the final analysis, the market may have to go through the tragedy of a sell-correction which combines agony and duration. What may happen is that the economy will run through a cycle in which unemployment increases until labor costs fall to a nearly unimaginable level. Businesses will begin to hire again because they will have access to skilled workers at a fraction of what those people would have cost them a year ago. If that is the solution to the labor problem, the end of the recession is a long march from here. Douglas A. McIntyre Tagged: GE, MSFT      Source: 247 Wall Street | 4 Mar 2009 | 10:18 am Treasury to detail US housing planThe US Treasury will unveil details of President Barack Obama's $275bn (€219bn, £196bn) plan to help financially stretched homeowners avoid foreclosure, seen as an essential piece of the administration's economic recovery effortsSource: Financial Times - US homepage | 4 Mar 2009 | 10:15 am Costco profit hurt by non-food margins, lower gas profit, forexCostco Wholesale Corp. reports that fiscal second-quarter earnings fell 27% on 0.8% lower sales, hurt by thinner profit margins in non-food items as well as lower gasoline profit and the stronger dollar’s impact on overseas sales.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 10:08 am As Car Sales Collapse, Hyundai Becomes The Most Successful Car Company In America
Most large car companies posted more significant unit sales drops in February than analysts expected. GM (GM) only sold 268,737 light vehicles. Three years ago, that would have been its take for the July 4th “cash back” weekend. Ford (F) moved 96,044 units, off 48% from the same month last year. As usual, the Ford PR department did what it could to misdirect and dissemble. Early in its statement about last month’s sales, Ford pressed the case for how fabulous it new products are. The most important announcement the company thought it was making was that Ford will introduce the new Fusion model during “American Idol.” It tells Ford’s shareholders how out of touch the company’s CEO Alan Mulally is. He can be forgiven. He used to work for Boeing (BA). The only privately held member of The Big Three, Chrysler, did better than expected. Sales were down 44% to 84,050. Honda (HMC), Toyota (TM), and Nissan all had results down about 40%. Hyundai sold 30,621 vehicles in the US last month. That is more than half of Nissan’s sales which dropped to 54,249. And, Nissan has been a prominent brand in the American car business ever since it was known as Datsun. Most consumers don’t know that Hyundai sells cars. Most Americans don’t know that Hyundai exists at all and virtually no one knows where the company is based. The brand does not seem to show up in JD Power customer satisfaction or Consumer Reports rankings. Hyundai’s US car arm is a tiny piece of a Goliath of a company based in South Korea. The firm owns mines, petroleum assets, machinery manufacturing operations, and electronics factories. It also builds commercial tankers that are as long as several football fields. The genius behind the Hyundai approach to selling cars is that it has caught on to a way to get people into showrooms during the worst recession in decades. Every other auto company of any size has a line of vehicles as diverse as Hyundai’s and all of its competitors have more recognized brands. But when Hyundai did a bit of research about car buyers it found that 50% of people thinking about buying a car or truck were resisting the urge because they might lose their jobs. Hyundai took what appears to be a big risk. If someone buys one of the company’s cars and losses a job, Hyundai will make the payments for three months. For people still in a bind at the end of that period, the firm will take their cars back. Making the offer takes a lot of guts. It would seem to be a significant financial risk. But, as GM and Ford are finding out, losing 50% of monthly sales isn’t risky. It’s fatal. If The Big Three are each going to loss $1 billion to $2 billion dollars a month, they might as well do it selling cars to people who are likely to get fired. It is a shame that the most effective car marketing program in America comes from a Korean company. Douglas A. McIntyre Tagged: BA, F, GM, HMC, TM      Source: 247 Wall Street | 4 Mar 2009 | 10:01 am Services slowdown eases ahead of rate decisionActivity in Britain's service sector continued to shrink in February, but the pace of decline eased slightly, figures show.Source: Latest Business News from Times Online | 4 Mar 2009 | 10:00 am Adidas profit doubles on tax benefits, lower marketing expensesAdidas on Wednesday reports that its fourth-quarter profit more than doubles, but the sportswear maker gives a downbeat assessment of this year’s prospects.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 9:59 am First Solar buys rival's assetsAcquisition vaults First Solar into the ranks of big solar power plant developers.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 9:58 am Microsoft may create R&D jobsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 4 Mar 2009 | 9:57 am Miners lift FTSE after China rallyLondon's FTSE 100 opened higher on Wednesday after falling sharply in the previous two sessions of the week, with bargains sought in the heavily sold mining sector.By mid morning, the benchmark index was...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 9:53 am London Markets: Mineral extractors pace gains for London; FTSE 100 up 1.7%London shares took back some of this week’s heavy losses on Wednesday, helped by strong gains for mineral extractors as a key measure of Chinese manufacturing improved in February.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 9:48 am Global stocks rise after heavy loss (Reuters)
Source: Yahoo! News: Stock Markets News | 4 Mar 2009 | 9:41 am Senate panel to question Swiss banker, secrecyWASHINGTON (Reuters) - The sanctity of the secret Swiss bank account -- an icon of global finance -- is under growing pressure in a tax investigation due to come into public view on Wednesday at a U.S. congressional hearing.Source: Reuters: Business News | 4 Mar 2009 | 9:35 am UBS taps former finance minister as next chairmanUBS says Wednesday that its Chairman Peter Kurer will step down after just a year in the role and will be replaced by former Swiss finance minister Kaspar Villiger at its next annual meeting in April.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 9:33 am Chinese spending plan boosts Asian sharesShanghai shares enjoyed their biggest rally since November on expectations of a generous Chinese government stimulus package, helping firm up markets around the region. Asian markets got a much-needed...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 9:31 am Australian economy shrinks 0.5%Australia's economy shrank 0.5% in the final quarter of 2008, its first contraction for eight years, raising recession fears.Source: BBC News | Business | World Edition | 4 Mar 2009 | 9:24 am Shanghai stocks surge, leading Asian reboundAsian share markets end mostly higher Wednesday, with Chinese shares in Shanghai and Hong Kong rallying hard on hopes for further stimulus measures and speculation the measures may include market-supportive moves.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 9:18 am Peston in China'It is the nearest I will witness to the market mania of ordinary Americans crowded round ticker tapes in the 1920s'Source: BBC News | Business | World Edition | 4 Mar 2009 | 9:14 am Media Digest 2/3/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters reports that a Senate panel will question Swiss banking’s secrecy policy. Reuters reports that foreclosures drove up the 2008 US home sales index. Reuters reports that Bernanke had no choice other than to help AIG (AIG). Reuters writes that Merrill’s top ten earners made $209 million in 2008. Reuters reports that the UBS (UBS) chairman stepped down. Reuters reports that the head of GM (GM) in Europe says Opel may cut 3,500 jobs. Reuters reports that MySpace lost three of its top executives. Reuters reports that Hollywood is considering life without Blockbuster (BBI) which could go bankrupt. Reuters reports that MasterCard (MA) will grow its debt business. The Wall Street Journal reports that the Fed will provide $1 trillion in credit to businesses and consumers. The Wall Street Journal reports that Lockheed Martin won a key logistics contract. The Wall Street Journal reports that Amazon (AMZN) will sell books for Apple (AAPL) iPhones. The Wall Street Journal writes that Venezuela is trying to renegotiate oil services contracts. The Wall Street Journal reports that the US may try to crack down on tax havens. The Wall Street Journal reports that the credit crisis has spread globally. The Wall Street Journal writes that handset sales are expected to pick up against worldwide in 2010. The Wall Street Journal reports that AMD (AMD) will have a new name and a new strategy. The Wall Street Journal reports that Apple (AAPL) cut prices on some PCs. The Wall Street Journal reports that the ADP jobs survey will show 630,000 private sector jobs disappeared in February. The Wall Street Journal reports that some charts show the Dow should bounce. The Wall Street Journal reports that public pension funds are hiring people laid off by Wall St. The Wall Street Journal reports that the IMF said the credit crisis could cause a need to $25 billion in assistance to small countries. The Wall Street Journal reports that many REITs will cut dividends. The Wall Street Journal reports that BP (BP) will keep paying its dividend. The Wall Street Journal reports that Palm’s (PALM) revenue will be short 70% in the next quarter. The New York Times reports that former Countrywide executives are making money buying distressed home loans. The New York Times reports that cable companies are using customer data to target ads. The New York Times reports that manufacturing may have edged up in China last month. The New York Times reports that the AFL-CIO supports nationalizing banks. The New York Times reports that Europe may back tariffs on US biofeul imports. The FT reports that AIG (AIG) will report billions of dollars of additional losses. The FT reports that GM is asking European governments to come to its aid. The FT reports that MGM Mirage (MGM) is warning it may default on some debt. MartketWatch report that Costco’s (COST) comparable store sales were off 3% last quarter. Douglas A. McIntyre Tagged: AAPL, AIG, AMD, AMZN, BBI, COST, GE, GM, MA, MGM, PALM, UBS      Source: 247 Wall Street | 4 Mar 2009 | 9:01 am Europe Markets: Commodity producers lead Europe stocks off lowsEuropean shares swung higher in early trading Wednesday, partially rebounding from multi-year lows as commodity producers advanced.Source: MarketWatch.com - Top Stories | 4 Mar 2009 | 9:00 am Segro launches £500m rights issueThe industrial property group has launched a highlydilutive and deeply discounted £500m rights issue to secure its future.Source: Telegraph Finance | 4 Mar 2009 | 8:49 am ITV takes radical action as advertising sinksThe broadcaster is cutting 600 jobs and slashing its programme budget after slumping to a £2.5bn loss.Source: Telegraph Finance | 4 Mar 2009 | 8:47 am London stocks rally in early trade (AFP)
Source: Yahoo! News: Stock Markets News | 4 Mar 2009 | 8:33 am Old Mutual axes dividend on bond failure fearsOld Mutual, the South African insurer, will pay no dividend this year as it seeks to strengthen itself against future corporate bankruptcies.Source: Latest Business News from Times Online | 4 Mar 2009 | 8:28 am Asia Markets And Europe Open 3/4/2009
The Nikkei rose .9% to 7,291. The Hang Seng gained 2.8% to 12,375. The Shanghai Composite was up 6.1% to 2,198 At the open in Europe, the FTSE rose 1.3%. The Dax was up .9% to 3,724. The CAC 40 rose 1.4% to 2,592. Data from Reuters and MarketWatch. Douglas A. McIntyre       Source: 247 Wall Street | 4 Mar 2009 | 8:24 am UBS chairman to step down after one yearUBS announced today that its chairman, Peter Kurer, will step down after a year in the job just days after the Swiss bank disclosed that its chief executive, Marcel Rohner, will be replaced.Source: Latest Business News from Times Online | 4 Mar 2009 | 8:16 am Wall Street sputters but doesn't tankStocks extend losses for a fifth consecutive day after failed rally attempts. The S & P 500 falls below 700 for the first time since 1996. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am As projects grind to a halt, home sites turn to wastelandThe dual weight of the credit crunch and the housing crisis prompt developers to abandon plans.By day, it's far too quiet at the site of a planned housing and retail development on a former Navy base in Oakland. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am It's time to hold credit card issuers to accountCustomers who pay on time are being socked with usurious rates even as lenders are getting federal bailouts. Now Congress is moving to halt the industry's practice of raising rates at will.Mark Huba is one of numerous Capital One cardholders nationwide who pays his bills on time and hasn't missed any payments -- yet has just been notified that his interest rate is soaring to almost 18%. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am Conflict erupts inside theatrical stage employees unionLeaders defend benefit cuts in a proposed pact with Hollywood film and TV studios, but critics say they go too far.Although much of the entertainment industry has focused on the civil war inside the Screen Actors Guild, another powerful Hollywood union is wrestling with its own internal conflict over a proposed contract with the studios. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am Obama skews battle lines in 'class war'Republicans are criticizing his budget plan, but the proposed redistribution of wealth toward the lower and middle classes only reverses a longstanding trend, Michael Hiltzik writes."Class warfare" comes in many flavors. There's the variety practiced by feudal overlords upon their serfs, and the variety waged by the Jacobins of the French Revolution against the monarchists. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am IPhone is out of Melinda Gates' reachThe wife of the Microsoft founder acknowledges her iPhone envy to Vogue magazine but says the couple has a policy against the Apple devices.One of the richest women in the world covets an iPhone. But she's not allowed to have one. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am 3 MySpace executives leaving for start-upThree of MySpace's top executives, including the chief operating officer, are leaving the social network to start their own start-up.Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am CBS has its eye on Fox's ratings prizeThanks to 'Idol,' Fox is still No. 1 with the key 18-to-49 crowd, but not by much. In fact, CBS has bested it in total viewers. Major programming shifts could loom next season. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am Obama's words do little to spur Wall StreetThe president tries casting the financial crisis as a stock opportunity as the Treasury and Fed launch the TALF investor lending program to bolster credit markets. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am Automakers report steep February U.S. sales declinesGM, Ford, Chrysler and Toyota all see sales slip at least 40%. Economic worries keep buyers away from dealerships, despite record incentive offers. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am Citigroup to cut mortgage payments for some unemployed customersPayments will fall to $500 for three months for borrowers who qualify under the lender's test program. Other banks may use it as a model. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am L.A. tops rankings in energy efficiencyThe Environmental Protection Agency says the city has the nation's most Energy Star buildings, which use at least 35% less energy than average buildings. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am Obama skews battle lines in 'class war'Republicans are criticizing his budget plan, but the proposed redistribution of wealth toward the lower and middle classes only reverses a longstanding trend, Michael Hiltzik writes. ...Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am Sony reportedly to cut about 300 jobs amid slumping DVD salesThe studio will trim about 4% of its workforce through layoffs and by eliminating open jobs, a source says. A Sony spokesman declined to comment.Sony Pictures Entertainment, grappling with slumping DVD sales and a worsening economy, plans to cut about 300 jobs, or about 4% of its workforce, through layoffs and by eliminating open positions, according to a person familiar with the situation. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am Obama's words do little to spur Wall StreetThe president tries casting the financial crisis as a stock opportunity as the Treasury and Fed launch the TALF investor lending program to bolster credit markets.With the stock market dropping to new lows, President Obama urged Americans on Tuesday to look past "day-to-day gyrations," set their sights on a rosier, long-term horizon -- and consider getting into the stock market. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am CBS has its eye on Fox's ratings prizeThanks to 'Idol,' Fox is still No. 1 with the key 18-to-49 crowd, but not by much. In fact, CBS has bested it in total viewers. Major programming shifts could loom next season.Thanks to "American Idol," Fox is still beating up on rivals, at least among the young viewers that advertisers crave. But the punch isn't what it once was. And that means network TV is likely to be on the cusp of some major programming shifts as it mulls development for next season. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am 3 MySpace executives leaving for start-upThree of MySpace's top executives, including the chief operating officer, are leaving the social network to start their own start-up.Source: RSS feed - channel BNPaperBusiness | 4 Mar 2009 | 8:00 am Automakers report steep February U.S. sales declinesGM, Ford, Chrysler and Toyota all see sales slip at least 40%. Economic worries keep buyers away from dealerships, despite record incentive offers.February's miserable auto sales results -- a 41% slide reported Tuesday, capping 14 consecutive months of decline -- cemented one fact: The industry's woes are no longer the sole province of Detroit. Source: L.A. Times - Business | 4 Mar 2009 | 8:00 am Best Buy to delay launch of first UK store: report (Reuters)Reuters - U.S. electronics retailer Best Buy and joint venture partner Carphone Warehouse have postponed the launch of their first UK store until the first quarter of 2010, the Financial Times reported.Source: Yahoo! News: Business | 4 Mar 2009 | 7:44 am ITV to cut 600 jobs as losses swell to £2.7bnAnalysis: the sale of Friends ReunitedSource: Latest Business News from Times Online | 4 Mar 2009 | 7:39 am Trump and lenders temporarily suspend litigation: report(Reuters) - Real estate developer Donald Trump and his lenders agreed to temporarily suspend litigation on the Trump International Hotel & Tower project in Chicago, the Wall Street Journal said.Source: Reuters: Business News | 4 Mar 2009 | 7:29 am Australian stocks: Market closes 1pc lowerMELBOURNE - The Australian share market closed well over one per cent lower on Wednesday after falls from the resource sector and financial stocks, amid fears the ecoomy is heading for recession. At the 1615 AEDT close, the benchmark...Source: New Zealand Herald - Business | 4 Mar 2009 | 7:23 am Senate panel to question Swiss banker, secrecy (Reuters)
Source: Yahoo! News: Business | 4 Mar 2009 | 7:04 am NZ stocks: Shares recover after batteringAfter taking a battering yesterday, the New Zealand share market managed a healthy recovery today with the support of bargain hunters. Yesterday the NZSX-50 index dropped more than 2.5 per cent, or 63.6 points, as it followed world...Source: New Zealand Herald - Business | 4 Mar 2009 | 6:29 am Currency: Dollar falls against AussieThe New Zealand dollar recovered from a slide to a seven-month low against its Australian counterpart after the Reserve Bank of Australia left its key cash rate at 3.25 per cent on Tuesday. Early today the kiwi fell to the A77.10c...Source: New Zealand Herald - Business | 4 Mar 2009 | 5:37 am Australian GDP shrinks for first time in 8 yearsThe Australian economy has slipped into negative growth for the first time in eight years, raising fears that the country is on the brink of recession.Source: Latest Business News from Times Online | 4 Mar 2009 | 5:24 am Pacific Brands moving to China ? 100 jobs lostAbout 100 jobs are expected to be lost from the signalled closure of apparel manufacturing plants run by Pacific Brands in Christchurch and Palmerston North. The National Distribution Union said 38 workers, including nine salaried...Source: New Zealand Herald - Business | 4 Mar 2009 | 5:07 am Tax Tip of the Week: Understanding Retirement Distributions
Did you tap into your 401(k) or IRA in 2008? Naughty, naughty taxpayer. If you took an early distribution from your retirement plan, you should know you’ll probably be punished. Early Distributions From Retirement Accounts Are Hit With 10% Penalty Payments out of retirement accounts prior to age 59 ½ are generally considered early or premature distributions, and as such are reported to the IRS so they can impose an additional 10% penalty tax. (If you rolled the distribution into another qualified plan within 60 days, no worries. You’ll still have to report it, but it doesn’t count as a withdrawal.) The 10% additional tax is above and beyond the whatever marginal income tax bracket you fall into. That’s what makes it so painful. It’s an easy detail to overlook when you’re strapped for cash. Fortunately, there are a few exceptions that might still save you. Exceptions to the 10% Penalty Tax Rule The IRS has shown a few small kindnesses when it comes to retirement distributions. However, most of them don’t have anything to do with the fact that you lost your job and need to put food on the table. Still, you may find you fall into one of the exceptions. Distributions are not subject to the 10% penalty taxed when used for the following:
You’ll still be subject to income tax, but knowing the rules may help you to avoid the 10% additional tax. Image Credit: kevindooley, Flickr Source: Business Pundit | 4 Mar 2009 | 3:49 am Surprise fall in Aus GDP could mean recessionSYDNEY - A surprise fall in gross domestic product (GDP) in the December quarter has changed the Australian economic landscape. The Australian Bureau of Statistics said on Wednesday that GDP fell by 0.5 per cent in the quarter...Source: New Zealand Herald - Business | 4 Mar 2009 | 3:30 am Australian growth shrinks 0.5%Australia's economy unexpectedly shrank for the first time in eight years in the calendar fourth quarter, reviving pressure for more monetary and fiscal stimulus. The news pushed down share markets and undermined the Australian dollarSource: Financial Times - US homepage | 4 Mar 2009 | 2:35 am GE tells shareholders it can weather the stormWASHINGTON - General Electric, the global business behemoth, is trying to convince its shareholders it can weather the economic storm, but investors keep running for cover. In a letter to shareholders, chief executive Jeffrey Immelt...Source: New Zealand Herald - Business | 4 Mar 2009 | 2:30 am Fuel problems ground all Qantas A380sFuel system problems forced Qantas to temporarily ground all three of its new flagship Airbus A380s. A fuel leak was found in an A380 scheduled to fly from London to Melbourne on Monday (local time). The flight was delayed by...Source: New Zealand Herald - Business | 4 Mar 2009 | 2:00 am Blockbuster seeks debt overhaul, shares haltedNEW YORK/LOS ANGELES (Reuters) - Top U.S. movie rental chain Blockbuster has enlisted lawyers to help it raise capital and refinance debt, but stressed on Tuesday it has no plans to file for bankruptcy.Source: Reuters: Business News | 4 Mar 2009 | 1:39 am MGM Mirage warns of debt default riskMGM Mirage, the gaming operator that owns some of the world's best-known casinos warns that it is at risk of defaulting on its debt, underscoring the steep downturn in the global gaming sectorSource: Financial Times - US homepage | 4 Mar 2009 | 1:34 am Wind turbine maker reports soaring salesChristchurch wind turbine manufacturer Windflow Technology is reporting a smaller half year loss from a year earlier as revenues soared. Revenue of $11.8 million for the six months to the end of December compared with $2.9 million...Source: New Zealand Herald - Business | 4 Mar 2009 | 1:30 am IT Outsourcer Keeps Military, Intelligence Agency Computers RunningRedeploying troops involves a lot more than just moving a few people. Thousands of vehicles and tons of equipment need to be inventoried, tracked,...Source: Investor's Business Daily: BUSINESS | 4 Mar 2009 | 1:06 am In Brief - TuesdayBlount Int'l (BLT), which makes lawn-mower blades, chainsaw chains and other outdoor gear, said Q4 EPS fell 26% to 14 cents, missing views by 4...Source: Investor's Business Daily: BUSINESS | 4 Mar 2009 | 1:06 am Business Briefs - TuesdayApple touts lower desktop prices. The maker of the iMac, iPhone and iPod took the wraps off a refreshed desktop computer lineup, stressing the...Source: Investor's Business Daily: BUSINESS | 4 Mar 2009 | 1:06 am After The Close - TuesdayVERTEX PHARMACEUTICALS (VRTX), which is developing a drug for hepatitis C, said it's buying ViroChem Pharma in a stock and cash deal worth $377 mil.Source: Investor's Business Daily: BUSINESS | 4 Mar 2009 | 1:06 am Trends & Innovations - TuesdayScientists try nanoscale origamiSource: Investor's Business Daily: BUSINESS | 4 Mar 2009 | 1:06 am Microsoft (MSFT) Gambles Users Will Tire Of Google (GOOG)By Douglas A. McIntyre of 24/7 Wall St. for DailyFinance.com Microsoft (MSFT) will begin to kick the tires on its new search engine. According to The Wall Street Journal, “Microsoft Corp. has begun testing a revamped version of its internet search service, dubbed Kumo.com, as the software giant tries to improve its third-place position in the online search market.” Of course, Redmond says that it has built a better mouse trap and that results will be more relevant to users than those of other search products. Microsoft’s success with the product may be largely out of its hands. It has 10 percent of the U.S. search market, by most estimates. Google (GOOG) has close to 60 percent. Microsoft’s best chance of picking up ground may not be better technology. It may be based on whether people are tiring of using Google. Tagged: GOOG, MSFT      Source: 247 Wall Street | 4 Mar 2009 | 1:05 am US auto industry's worst year since 1981DETROIT - Offers of huge rebates and tempting low-interest loans weren't enough to entice car buyers out of their bunkers in this economic crisis, causing US auto sales in February to hover near historic lows. General Motors'...Source: New Zealand Herald - Business | 4 Mar 2009 | 1:00 am Watchdog lifts lid on shadowy bank umbrella body UKFIA parliamentary watchdog lifted the lid yesterday on the shadowy government organisation that will manage taxpayer-owned stakes in British banks.Source: Latest Business News from Times Online | 4 Mar 2009 | 12:00 am Dairy prices rise 16pc at latest online auctionFinally, an internet dairy auction that shows some promise. Fonterra said today that international dairy prices rose in its latest monthly internet auction after a lengthy period of decline. In the latest auction early today,...Source: New Zealand Herald - Business | 4 Mar 2009 | 12:00 am Obama backs UK on crisis co-ordinationPresident Barack Obama has backed British efforts to forge a co-ordinated global response to the economic crisis following talks with Gordon Brown , the UK prime minister, in WashingtonSource: Financial Times - US homepage | 3 Mar 2009 | 11:28 pm Global new deal 'possible' in months : Brown (AFP)
Source: Yahoo! News: Stock Markets News | 3 Mar 2009 | 11:27 pm How the Dow Jones industrials fared Tuesday (AP)
Source: Yahoo! News: Stock Markets News | 3 Mar 2009 | 10:53 pm Write-Offs: 03.03.09$$$ Inside the Bear Stearns Boiler Room [Fortune] $$$ Shocking Target Trubs [Bloomberg] $$$ Anal_yst has some thoughts. [1-2] $$$ Random editorial query: are you or is anyone you know flipping the fuck out and, in preparation for the apocalypse, buying guns, bigger safes, building panic rooms, etc? Someone wants to speak to you, so get in touch.
Source: Dealbreaker | 3 Mar 2009 | 10:16 pm AIG still facing huge credit lossesAIG, the insurer controlled by the US government, still faces billions of dollars in potential losses on credit guarantees it provided for complex subprime mortgage securities, in spite of its $62bn fourth-quarter loss and regulatory efforts to unwind its holdings, company filings showSource: Financial Times - US homepage | 3 Mar 2009 | 10:03 pm Rupkey Says Decline in Stocks May Delay U.S. RecoverySource: Bloomberg - All Podcasts | 3 Mar 2009 | 10:02 pm Obama Calls Long-Term Value In Stocks
Obama said he is looking at “the long-term ability for the United States and the entire world economy to regain its footing….” He noted how the banking system was dealt a serious blow and said that it was not surprising that the market is hurting. But here is where the question arises if you think he called for long-term buyers to take a look at stocks here. Obama noted, “On the other hand, what you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.” That statement might not be an endorsement of saying there is “long-term value” in stocks, but for a comment from the President (or from any other political leader) it may be as close as you can get. We do not like to cover the political aspects of every issue out there. But when it comes to money, it does feel like right now that there is no single issue driving the market more than what is coming out of Washington D.C. Traders and investors have been selling every new policy and just about every new speech when it comes to finances. Some might interpret this as political. It is not. The lesson of trading and investing is a simple one: buy low, sell high. When you know Washington is going to be extra hard on a sector, what is the normal reaction to do with your money? And when Washington is going to endorse markets? If the market participants feel like President Obama is giving a long-term endorsement of the stock market, maybe they will at least start to take a different stance. Or, maybe they will just consider it spin. Jon C. Ogg       Source: 247 Wall Street | 3 Mar 2009 | 9:55 pm Holland Says U.S. Has Too Many Financial InstitutionsSource: Bloomberg - All Podcasts | 3 Mar 2009 | 9:55 pm Billionaire Stanford retains lawyer in SEC case (Reuters)
Source: Yahoo! News: Stock Markets News | 3 Mar 2009 | 9:41 pm Billionaire Stanford retains lawyer in SEC case (Reuters)
Source: Yahoo! News: Business | 3 Mar 2009 | 9:41 pm Obama Portfolio UpdateWell, things slipped a little, but we are in this for the long-term, so we aren't going to pay attention to the day to day fluctuations or anything. But we know you will. The Obama Portfolio today: -1.43%.
Source: Dealbreaker | 3 Mar 2009 | 9:09 pm Oil rises nearly 4 percent on OPEC (Reuters)
Source: Yahoo! News: Stock Markets News | 3 Mar 2009 | 8:59 pm Iron ore miners plan to hold out on pricesMiners plan to postpone any agreement in annual negotiations with steelmakers until as late as the summer, betting that demand, and therefore market prices, will improveSource: Financial Times - US homepage | 3 Mar 2009 | 8:42 pm A Nation Of Mechanics
February sales figures are out from Ford and Toyota, and the numbers don't look good. Ford is reporting a 48% drop in sales compared to the same time last year, and Toyota reports a 37% drop. These numbers are bad enough, but take a look at Ford's production plans. The company says it plans to produce just 425,000 vehicles in the second quarter of 2009, compared to 685,000 vehicles in 2008 and 770,000 vehicles in 2007. There is some bright news in the automotive world, however. With new car sales plummeting, the country's largest auto parts supply chain is seeing its stock soar. Autozone's stock is currently selling for $152 a share, up over 20% from the same time last year. Another thing on the rise, the average age of a car in the U.S.-- it's 9.4 years right now. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 3 Mar 2009 | 8:27 pm Memo From Lewis TK
*BANK OF AMERICA CUT BY S&P; L-T COUNTERPARTY TO A FROM A+ *BANK OF AMERICA'S BANK UNITS CUT TO A+/A-1 FROM AA-/A-1+ BY S&P *BANK OF AMERICA FDIC-GUARANTEED DEBT AFFIRMED AAA BY S&P *BANK OF AMERICA RATING CUT TO A FROM A+ BY S&P; OUTLOOK NEG.
Source: Dealbreaker | 3 Mar 2009 | 8:23 pm Gibbs: "Nobody Has More Respect For Warren Buffett Than The President"We don't have any particularly strong feelings about White House Press Secretary Robert Gibbs either way (though he needs to stop acknowledging the existence of CNBC*) but bubba, are you really going to come out and claim that among the rabid, insane, would lie down in the streets for WB crazies, YOUR BOSS it suspect #1? Even if it were true and, be serious, it's not, that's not the sort of thing you go bragging about. Especially now.
Source: Dealbreaker | 3 Mar 2009 | 8:08 pm Presented By: Kingdom of the Blue Whale – Sun Mar 8 8P
Source: Dealbreaker | 3 Mar 2009 | 8:08 pm W&T Offshore Cut to `Hold' at Wunderlich SecuritiesSource: Bloomberg - All Podcasts | 3 Mar 2009 | 7:51 pm Lindland Says Auto Sales Are 'Unsustainably Low'Source: Bloomberg - All Podcasts | 3 Mar 2009 | 7:46 pm The Obama PortfolioWe are pleased to note that since the President's (somewhat hedged) bullish call, markets are up. Go team! We jumped in and bought some Spiders to bask in the optimism. Current return: 0.61%. Full disclosure: Long SPY
Source: Dealbreaker | 3 Mar 2009 | 7:46 pm Varvares Says Credit Markets Remain `Congested'Source: Bloomberg - All Podcasts | 3 Mar 2009 | 7:40 pm Surprise, SurpriseGeneral Motors has let us know that their same month U.S. sales figures for February were down by more than half. No surprise here. Let me just ask, why are they still producing products again? GM says U.S. sales for February declined 52.9 percent [Reuters]
Source: Dealbreaker | 3 Mar 2009 | 7:29 pm The economy sucks, but that's expectedIt seems each day brings more bad news about the economy. But commentator Brad DeLong says this is what was expected, so you shouldn't be surprised.Source: Marketplace | 3 Mar 2009 | 7:10 pm Truckers want to super-size their ridesThe American Trucking Association is pushing an initiative to allow bigger trucks on the road. They say it's good for the planet, but opponents argue it'll hurt independent truckers. Sadie Babits reports.Source: Marketplace | 3 Mar 2009 | 7:05 pm Line between work and life is blurringAmericans are taking fewer vacation days and clocking in more hours just to stay employed. Kai Ryssdal talks to sociologist Dalton Conley about the fading separation between work and life.Source: Marketplace | 3 Mar 2009 | 7:05 pm Less bling on TV screens next season"Gossip Girl," "Privileged," and "The Hills" are some of the TV shows that glamorize wealth. But next year's TV lineup may reflect more of our economic reality. Stacey Vanek-Smith reports.Source: Marketplace | 3 Mar 2009 | 7:04 pm States spending too much on prisons?A Pew Center report shows that one of the fastest-growing spending areas for states is criminal correction. But as states struggle with their budgets, is the price of spending on the penitentiary system worth it? Rico Gagliano reports.Source: Marketplace | 3 Mar 2009 | 6:57 pm Has the market bottomed out yet?Investors are looking for signs of life in the market as the Dow continues to fall. Has the market finally hit the bottom so it can rebound? Jeremy Hobson reports.Source: Marketplace | 3 Mar 2009 | 6:57 pm U.S. may start funds to buy bad assetsThe government may partner with private investors to create new funds to buy up bad assets from the troubled banks. Steve Henn reports.Source: Marketplace | 3 Mar 2009 | 6:57 pm Bernanke: There are no 'zombie banks'Federal Reserve Chairman Ben Bernanke says that all U.S. banks are viable and lending. But with the banking system limping along, are there really no "zombie banks" in the U.S.? John Dimsdale reports.Source: Marketplace | 3 Mar 2009 | 6:56 pm Listener: Should I Intern?Eric takes the open mic: [L]ast year around this time, I started to think about changing careers. One of the reason is that I've been at my current job for 8+ years and finally came to the realization that this was not what I wanted to do. I wanted to go into the graphic/web design field. After a few months, of researching and putting together my portfolio(I have the skills, but lack the real world experience), I finally started job hunting. I landed a few interviews but nothing happened. Then October hit and jobs just seized to exist. So towards the end of the year, I decided that I would save up enough money to work part time at my current day job and do an internship for 3 - 6 months to gain work experience and hopefully move into a new career field. I was planning on starting this sometime in mid-April. Now though, a few friends of mine have cautioned against doing this since things are not looking up and the job market maybe worse in 6 months than it is now. I'm still debating about whether I should do an internship now or wait till next fall sometime. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 3 Mar 2009 | 6:52 pm Rego Park Suggests You All Start Packing HeatIn the meantime, I'd like to pass on a stock tip from a source of mine. While I don't usually make stock recommendations, and I'm certainly not recommending this one, it's worth noting that one of the hottest stocks amid the economic misery we've been experiencing goes under the symbol SWHC, or gun maker Smith & Wesson Holdings Corp. It's up around 70 percent, and at least in my mind, this isn't the flight-to-quality the markets need.
Source: Dealbreaker | 3 Mar 2009 | 6:10 pm Chandler Sees Bank of England, ECB Cutting RatesSource: Bloomberg - All Podcasts | 3 Mar 2009 | 6:02 pm Breaking: Obama Called Equities BottomSitting with British Prime Minister Gordon Brown a little while ago, Obama reassured Americans that now is the time to buy stocks for the long-term. Excellent. Update: Bloomberg has it. Update 2: Reuters too. Obama Says Now May Be a Good Time to Buy Stocks [Bloomberg] Obama says stocks potentially a good buy now [Reuters]
Source: Dealbreaker | 3 Mar 2009 | 5:45 pm GM Blogs Against BankruptcyA GM "news relations" director blogs today against taking bankruptcy: [W]hile "clearing the decks" sounds refreshing, the reality would be anything but. The bankruptcy process would bring financial hardship to millions who rely on GM -- and upon whom GM relies. The link comes from another GM flack, which serves to make it all seem that much more circular. More from GM: GM suppliers, already pushed to the edge by the recession and credit crisis, would in many cases follow GM into bankruptcy, jeopardizing the flow of parts GM needs to produce vehicles -- and generate revenue. Fewer health care dollars would have a real impact on employees and retirees, as well as on local health care providers. Should GM's pension plans be turned over to the federal government, the result would be reduced benefits for some retirees and greater expense for the taxpayers. The deck in question turns out to be one that millions of ordinary Americans stand on. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 3 Mar 2009 | 5:37 pm Geithner As 'Terrified Intern'Andrew Sullivan goes eight flavors of nope on U.S. Treasury boss Tim Geithner, who's still working out the details of the public-private partnership to save banks: I'm a pretty sympathetic Obama supporter. I'd like to know what the Treasury secretary actually proposes with respect to the banking crisis. Is that really too much to ask? Maybe he'll tell us today. Who knows? He should be a critical force in explaining the government's economic policies, and yet he seems incapable of conveying anything to the American public whom he serves. He came across in his debut as a terrified intern who hadn't mastered his brief. And his political presence since has been pathetic. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 3 Mar 2009 | 4:50 pm Out Of Hummers in Illinois
Where have all the Hummers gone? Dale Schaafsma
Dale sends this picture of Hummer dealership in Lisle, IL. He writes: A friend of mine goes to the Dodge dealer next door and stopped in for a repair. Apparently the shop has the only Hummers, but they can't get parts to repair them. The story is that the owner of both the Dodge & Hummer dealers has all but shutdown the Hummer side. Since he does not have a GM brand dealer he owns, he cannot get parts from GM (I presume they're not shipping anything to him as he hasn't ordered any Hummers). I'm left wondering if he sold off the inventory to individuals or another dealer? » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 3 Mar 2009 | 4:20 pm 10 Best Countries for Medical TourismIn the last decade, medical tourism has hit the tipping point as a viable alternative to overpriced domestic procedures. Why buy a $3,000 dental crown treatment in the United States when you can get the same thing–plus a flight, hotel, and fun tourism opportunities–for less in Hungary? Here are the 10 best countries for medical tourism, ranked by appeal, specialties, and popularity: 10. Lithuania
If you’re interested in latest-craze stem cell treatment, look to the Baltics for treatment. Haematopoietic stem cell transplantation, which helps cancer patients and people with blood diseases, is all the rage in Vilnius, the capitol of Lithuania. They also do more mundane treatments, like gastric bypass and back surgery. 9. Turkey
Every year, nearly 200,000 people head to Turkey for eye treatments like Lasik surgery. Once your new peepers are intact, tourism companies bus you around to see beautiful sites, like the Blue Mosque. Sounds like a deal! 8. India
Ayurvedic treatments, yoga, and meditation have long been staples of Indian health tourism. Now, millions of people are also taking annual “dental holidays” to India because quality procedures can be as much as 10 times cheaper than at home. For example, a root canal only costs about $100. 7. Israel
Israel is famous for its low-cost cancer treatment centers. Once that marrow transplant takes, you can recover with special therapies that use Dead Sea mineral salts. Much of the population speaks English–an added bonus. 6. Costa Rica
Costa Ricans are famous for growing old gracefully. Now we know why: Costa Rica is leading the world in what they like to call “age management” in beautifully-located “medical spas.” 5. Hungary
Austrians and Germans have been crossing the border here to get work done for years. German influence and an influx of former healthcare professionals have contributed to Hungary’s state-of-the-art medical technology. Dental procedures, from crowns to root canals, cost 40-60% less than western prices. Apparently, the anaesthesia is world class–but you probably won’t remember. 4. Egypt
Prices for plastic surgery in Egypt are 60-70% lower than corresponding treatments in the US or UK. A thigh liposuction, for example, is done for a mere $260 in Egypt. The same procedure can cost up to $2,000 in the US and $3,000 in the UK. 3. South Africa
South Africa specializes in medical safaris. You visit the country for a safari, make a stopover for plastic surgery, and get the chance to see lions and elephants. The first human heart transplant was performed here in 1967, so quality shouldn’t be of concern. 2. Malaysia
Malaysia’s quality of care, low prices, and beautiful beaches attract customers seeking a range of treatments. You can get your knee replaced, face lifted, and cataracts removed, then spend hours recovering on the serene beach. 1. Thailand
Thailand’s King Bhumipol’s father, Prince Mahidol, made it his life’s work to modernize the healthcare system in Thailand. During his time, he convinced the Rockefeller Foundation to fund an American medical education for a group of Thai men and women, leading to the creation of one of the world’s best medical systems. Phuket, Thailand is world renowned for “aesthetic” plastic surgery procedures such as otoplasty and blepharoplasty-your ears and eyelids will look stunning. Source: Business Pundit | 3 Mar 2009 | 4:00 pm Dover's Cliggott Says Corporate Earnings Are `Getting Crushed'Source: Bloomberg - All Podcasts | 3 Mar 2009 | 3:33 pm MF Global's Tyson Is `Bullish' on TreasuriesSource: Bloomberg - All Podcasts | 3 Mar 2009 | 3:30 pm Gale Says 2010 Budget Politically Risky For Obama (Correct)Source: Bloomberg - All Podcasts | 3 Mar 2009 | 3:20 pm Chart: Our Shrinking EconomyOn Friday, the Bureau of Economic Analysis announced The BEA's big number was -6.2 percent, which is the amount the U.S. economy would have declined if it had sustained four quarters identical to the last one. Annualized percentage rates are a standard convention in finance; even when they describe a period of time other than a full year, economists and bankers prefer knowing that all percentage rates express annual projections. GDP is calculated by adding four numbers: (1) consumption, (2) gross investment, (3) government spending and (4) net exports.
In the chart above, the four components may not appear to have changed much, yet the represent the overall picture as the country sank into a devastating recession. But to an economist, the chart paints a terrifying picture, because growth has powered the economy -- and this is a picture of no growth. Even the modest dips in this graph represents billions of dollars of lost sales. In these difficult economic times, consumers cut spending in a wide range of categories, moving, for example, from premium food brands to generics. This is reflected in the falling share of personal consumption in overall GDP: 
Personal consumption as percentage of GDPAlan Cordova/NPR While this movement represents a drop of less than 2 percent, it's 2 percent of a very, very large number (somewhere around $11 trillion). Economists do not anticipate that this quarter, the first of 2009, will be much better: The one positive trend was in the final number -- the difference between exports and imports. Because American demand for foreign products fell faster than international demand for American products, the balance of trade, which had lingered at a deficit of around $600 billion dollars, improved by over 40 percent in the past two years. 
Net exports Alan Cordova/NPR Although an increase in several hundred billion dollars would look small on the first graph, such movements may begin to slow the decline. That's particularly likely if the dollar continues to fall in relation to foreign currencies. A weaker dollar makes American goods more affordable to overseas customers. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 3 Mar 2009 | 3:16 pm When You’re Out of Money, Improvise
Source: Business Pundit | 3 Mar 2009 | 2:29 pm HSBC's Gardiner Sees `Lack of Interest' in Stock MarketsSource: Bloomberg - All Podcasts | 3 Mar 2009 | 1:50 pm Term Asset Backed Securities Loan Facility: Ready, Set, Debt!The Fed will launch the Asset Backed Securities Loan Facility (TALF) to inspire US consumers to go into more debt, with the hopes of sparking life into the economy. MarketWatch reports: A new lending program from the Federal Reserve and the U.S. Treasury could generate up to $1 trillion in loans for small businesses and consumers, the government announced Tuesday. The Term Asset-Backed Securities Loan Facility, or TALF, will provide its first loans March 25, the government said. The New York Fed will lend up to $200 billion to owners of high-rated asset-backed securities, such as those backed by consumer loans, auto loans, student loans, credit-card receivables or small-business loans. Investors or companies holding these loans will be able to use them as collateral to obtain fresh funding from the government to extend credit to new customers worth up to $1 trillion. The Fed’s program is designed to make a profit in the long run through interest and fees. The program will stimulate the economy by circumventing traditional credit channels that are now blocked up, the government said. With banks unable or unwilling to lend, even the most credit-worthy customers are finding credit hard to obtain. To limit the credit risk to U.S. taxpayers, the TALF will require some private capital to back each loan. In each case, the borrowers will have to put up extra collateral, known as a “haircut.” The program could be expanded to cover securities backed by auto or equipment leases, or to commercial mortgages, residential mortgages or collateralized debt obligations This sounds almost as exotic as the CDOs that preempted it. My reactions to reading this: 1. It’s another piece of nationalization. Banks are unwilling to lend, so the government circumvents them. When the government takes over the traditional function of an industry, that’s nationalization. TARP, TALF, and any other manifestations of government superseding industry are examples of policy that takes on characteristics of nationalization, but carefully avoids calling it by its name. 3. The move is perfectly in line with Obama’s populism. The people taking on TALF debt will be the same people who are essentially being bailed out in the first place: People with credit issues, people on the brink of foreclosure, speculators, people whom the government perceives to be struggling. Such people are Obama’s salt of the earth. His new infrastructure campaign targets them, as do new foreclosure options–and TALF. The problem is that people who have lived a conscientious financial lifestyle aren’t getting any help. The administration’s policies are alienating them. But in the bigger scheme of things, the administration can afford to alienate them. People on the brink of poverty are more likely to participate in social unrest. If the government meets their needs first, it is buying time: The rest of the population still has some distance to cover before it hits bottom. In that sense, the policies could work, at least for a while. But at what economic cost? Source: Business Pundit | 3 Mar 2009 | 12:52 pm
|
News that a measure of manufacturing activity in China took a tick up in February put analysts into a fever of excitement. The Shanghai Composite moved up 6%.
It is probably a pretty fair guess that Google (GOOG) will have a poor quarter and that the stock is heading for new lows.
The Apple (AAPL) iPhone may be good for a lot of things, but reading electronic books is not one of them. The screen on the device is so small that trying to read “War and Peace” would make most people over 30 go blind.
The Wall Street Journal decided to give Merrill Lynch, now part of Bank of America (BAC) a hard time for paying some of its investment bankers and traders more than $10 million each last year.
Using the US government’s count, about 2.4 million people lost their jobs in America last year. That does not include people who have been jobless for an extended period and are no longer looking for jobs. In January, another 598,000 people were put onto the streets by their employers, moving the unemployment rate up to 7.6%.
Hyundai is now the most successful car company in the US and it has the numbers to prove it. It has come up with a way to sell cars to people who fear that they will be homeless and it works.
According to Reuters, Obama spoke about the economy with optimism as his aides defended the budget.
Markets in Asia were higher
Many analysts, economists, traders, and the like have blamed some of President Obama’s new plans and some of the proposed actions out of Congress as contributing to the recent sell-off. But President Obama said today he has noticed the market, even if he also said that he would not look at the short term swings. But Obama made statements today that might at least lead some to look at the current value in stocks for the long haul.
