World Business News Headlines for March 6, 2009

H&R Block profit tops estimates as tax fees rise (Reuters)

Reuters - H&R Block Inc posted a higher-than-expected quarterly profit on Friday as it charged more to prepare tax returns heading into the critical U.S. tax filing season.
Source: Yahoo! News: Business | 6 Mar 2009 | 12:56 pm

Will 'buy American' make recession worse?

Some fear that the protectionist trend spreading across the globe could escalate into a growth-killing global trade war.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 12:53 pm

Fewer And Fewer Make Timely Mortgage Payments

95129c4 It makes sense. Unemployment for February could hit 8%. It could move closer to 9% by the end of April. That does not include people who have been out of work for extended periods and are no looking now.

Along with jobs cuts, fewer people are getting raises and many are taking pay cuts.

The number of people who cannot pay their mortgages is spiking up.

According to the FT, “The percentage of loans that were in foreclosure or at least one payment past due rose to 11.93 per cent in the fourth quarter, the highest since the MBA began keeping records in 1972 and a jump of almost 2 percentage points since the third quarter.”

Despite the Administration’s new mortgage rescue plan, the figure is likely to go higher. More people will lose jobs. More homeowners will find that their home loans are much larger than the equity of their houses. As home prices fall, that ratio will get even worse. A home is simply becoming an awful long-term investment.

No matter how much assistance goes into the system to help “worthy” people keep their houses, the number of people who cannot wait to turn in the keys or have lost work will continue to rise.

Douglas A. McIntyre

Source: 247 Wall Street | 6 Mar 2009 | 12:48 pm

Worst is yet to come for job market

It's no secret that the job market is bad.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 12:45 pm

Factory gate inflation slows down

The cost of goods leaving UK factories in February rose at the slowest rate for 16 months, the Office for National Statistics has said.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 12:45 pm

Strong Dollar: Good? Stupid?

NPR's Tom Gjelten has answers.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 6 Mar 2009 | 12:45 pm

India's Satyam cleared to sell majority stake

India's Satyam Computer Services Ltd. has received clearance to sell off a majority stake through a competitive global bidding process, the troubled software services company said Friday.
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:45 pm

Dollar drops before US jobs data

The dollar dropped against the euro, yen and British pound on Friday as traders braced for a report expected to show massive job losses in the United States, analysts said. The European...
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:43 pm

Treasurys rise ahead of jobs report

Treasurys rose Friday morning as investors brace for a key report on the nation's labor market.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 12:42 pm

Shopper benefit as manufacturers charge less

The price manufacturers charged for the goods they sold last month slid to a 17month low official statistics showed.
Source: Telegraph Finance | 6 Mar 2009 | 12:41 pm

UPDATE 1-Patheon narrows quarterly loss

TORONTO, March 6 (Reuters) - Contract drug manufacturer Patheon Inc reported a smaller quarterly loss on Friday, helped by its restructuring program and other cost-cutting measures.
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:40 pm

Stock futures fall ahead of Feb. jobs report (AP)

AP - Traders weren't taking any chances Friday, sending stock futures lower ahead of what's likely to be another unnerving reading on the job market. Ahead of the market's opening, Dow futures fell 41 points, or 0.62 percent, to 6,590.

Source: Yahoo! News: Stock Markets News | 6 Mar 2009 | 12:40 pm

Top Analyst Upgrades (ARLP, MDRX, FDO, GFI, LOW, MSSR, MDR, TASR)

These are the top upgrades and positive calls we have seen from analysts on Wall Street this Friday morning:

Alliance Resource (ARLP) Raised to Buy at Citigroup.
Allscripts-Misys Healthcare (MDRX) Started as Outperform at Morgan Keegan.
Family Dollar (FDO) Raised to Neutral at JPMorgan.
Gold Fields (GFI) Raised to Overweight at JPMorgan.
Lowe’s (LOW) Raised To Outperform at FBR.
McCormick & Schmick’s (MSSR) Raised to Outperform at Oppenheimer.
McDermott (MDR) Raised to Buy at Jefferies.
TASER (TASR) Raised to Buy at Merriman Curhan Ford.

JON C. OGG

Tagged: ARLP, FDO, GFI, LOW, MDR, MDRX, MSSR, TASR

Source: 247 Wall Street | 6 Mar 2009 | 12:39 pm

Investors await jobs report

U.S. investors, coming off a bruising loss that left all three major indexes at multi-year lows, braced Friday for what's expected to be an abysmal monthly employment report.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 12:39 pm

Opel should consider insolvency, German minister says

Opel, the troubled European unit of carmaker General Motors, should 'seriously consider insolvency' rather than seeking a government bail-out, a German minister says
Source: Financial Times - US homepage | 6 Mar 2009 | 12:37 pm

Opel aid talks 'to last weeks'

The German government will not decide for several weeks about possible state aid for the troubled car maker Opel, a spokesman said on Friday. "Talks will last several more weeks," Ulrich
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:34 pm

World stocks gloomy on fresh economic woes

Asian stocks fell sharply Friday on fresh economic gloom after Wall Street hit a fresh 12-year low, but Europe steadied ahead of the weekend and a key US unemployment report, traders said.
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:27 pm

World stocks gloomy on fresh economic woes (AFP)

AFP - Asian stocks fell sharply Friday on fresh economic gloom after Wall Street hit a fresh 12-year low, but Europe steadied ahead of the weekend and a key US unemployment report, traders said.

Source: Yahoo! News: Stock Markets News | 6 Mar 2009 | 12:25 pm

Debenhams agrees to buy Principles brand

Department store group Debenhams has agreed to buy the brand and stock of Principles the collapsed clothing retailer in a move that could lead to the closure of the retail chain's 90 shops.
Source: Telegraph Finance | 6 Mar 2009 | 12:24 pm

Copper slump

Zambian miners struggle as mines shut down
Source: BBC News | Business | World Edition | 6 Mar 2009 | 12:23 pm

Europe seeks specifics on GM's plans in region (Reuters)

Reuters - Europe called for clarity on crisis-hit carmaker GM's plans for assets in the region with a German minister saying insolvency could be an option for Opel, while the Continental board met on Friday to discuss Schaeffler.
Source: Yahoo! News: Business | 6 Mar 2009 | 12:23 pm

Europe seeks specifics on GM's plans in region

BERLIN/PARIS (Reuters) - Europe called for clarity on crisis-hit carmaker GM's plans for assets in the region with a German minister saying insolvency could be an option for Opel, while the Continental board met on Friday to discuss Schaeffler.

Source: Reuters: Business News | 6 Mar 2009 | 12:23 pm

UPDATE 1-Siemens wins 1,800 MW wind turbine contract

* Contract is for turbines with total capacity of 1,800 MW
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:22 pm

BRIEF-LUKOIL says proved reserves fall to 19.3 bln boe

* Says proved hydrocarbon reserves fall to 19.3 billion barrels of oil equivalent as of Jan. 1, 2009 from 20.4 bln year ago
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:18 pm

Aviva shares slide further as worries over insurers persist

Aviva shares fell further on on Friday as fears persisted about the company's solvency after it maintained its dividend.
Source: Telegraph Finance | 6 Mar 2009 | 12:17 pm

Fortis shares surge as government reportedly nears BNP deal

Shares in troubled banking and insurance group Fortis jump around 20% in early trading after the Belgian government reportedly approaches BNP Paribas with a fresh deal for it to take over some of the group’s assets.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 12:11 pm

SNAPSHOT - Financial Crisis - 1205 GMT

- China economic leaders see recovery signs, fiscal, monetary stimulus working; Spending to help hit 8 pct growth target-Wen. Reuters poll suggests recovery is tentative
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:07 pm

Homeowners: Would you walk away?

With 1 in 5 homeowners underwater, many pundits predict a flood of people walking away from their homes. Five readers talked to us about why they are - and are not - sticking around.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 12:05 pm

RPT-DEALTALK-RBS starts unpicking in 36 countries, Asia first

* HSBC, StanChart, ANZ interested in Asia assets -sources
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:03 pm

H&R Block posts profit in fiscal 3rd quarter

H&R Block Inc. said Friday its third-quarter profits surged as it prepared more tax returns in the early season and saw smaller losses from discontinued operations. The Kansas City-based
Source: RSS feed - channel BNewsBusiness | 6 Mar 2009 | 12:02 pm

Stalemate between Lloyds and the Government is turning into a farce

Lloyds Banking Group's stalemate with the UK government is turning into a farce.
Source: Telegraph Finance | 6 Mar 2009 | 12:02 pm

Currencies: Dollar falls ahead of U.S. payrolls data

The U.S. dollar is broadly lower Friday, losing ground against most major rivals ahead of what’s expected to be a massive fall in U.S. non-farm payrolls.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 12:00 pm

Commodities Corner: Oil's backed itself into a corner

Imagine what it would be like to watch oil prices climb to a spectacular record high of $150 per barrel and then leave the planet for the next several months. That's practically what happened to me.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 12:00 pm

London Markets: WPP shares shine in modestly lower London

London shares move lower on Friday, with WPP leading the advance after the advertising giant reports flat profit for 2008 but says that trading for 2009 has been ahead of plan.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 11:52 am

Satyam gets nod to sell 51 percent; suitors cautious

BANGALORE (Reuters) - Fraud-hit Satyam Computer Services won regulatory approval to sell a majority stake in itself, but potential suitors said there was still uncertainty about the Indian company's accounts and liabilities.

Source: Reuters: Business News | 6 Mar 2009 | 11:49 am

Opel 'should consider insolvency'

German carmaker Opel should consider insolvency instead of state aid, the country's interior minister has said.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 11:49 am

Manufacturers shore up profits as prices slide

Manufacturers are taking advantage of tumbling inflation to shore up their damaged profit margins, figures from the Office for National Statistics (ONS) suggest.
Source: Latest Business News from Times Online | 6 Mar 2009 | 11:48 am

Wolseley confirms £1bn cash call

Building materials group Wolseley confirms plans to raise £1bn from investors, after a big fall in profits.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 11:47 am

H&R Block profit beats estimates

NEW YORK (Reuters) - H&R Block Inc posted a higher-than-expected quarterly profit on Friday as it charged more for tax services heading into its critical U.S. tax filing season.

Source: Reuters: Business News | 6 Mar 2009 | 11:47 am

£250bn Lloyds asset deal on cards

Lloyds Banking Group is close to a deal with the government for a £258bn asset insurance scheme, the BBC understands.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 11:47 am

European stocks mixed ahead of US jobs report (AP)

AP - European markets were mixed Friday ahead of the publication of what is expected to be an especially bleak U.S. jobs report.

Source: Yahoo! News: Stock Markets News | 6 Mar 2009 | 11:45 am

Citigroup to sell out of Japan broker Monex: report

TOKYO (Reuters) - Citigroup plans to sell its 26 percent stake in Japanese online broker Monex Group Inc as part of the struggling U.S. bank's efforts to raise cash, the Yomiuri newspaper reported on Friday.

Source: Reuters: Business News | 6 Mar 2009 | 11:43 am

Coca-Cola to invest another $2 billion in China

HONG KONG (Reuters) - Coca-Cola Co, the world's largest soft drinks maker, said on Friday it will invest $2 billion in new plant and distribution infrastructure in the next three years in China.

Source: Reuters: Business News | 6 Mar 2009 | 11:42 am

Worldwide downturn 'to hit women'

The economic crisis could increase the number of unemployed women by up to 22 million this year, the International Labour Organization says.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 11:39 am

Europe shares calm after US falls

European shares are steady in morning trading, despite hefty falls on markets in Asia and the US.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 11:37 am

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 11:31 am

SEC official washes out for Geithner No. 2

A leading contender to serve as the top deputy to Treasury Secretary Timothy Geithner is no longer under consideration for the post, as 17 top jobs at the department remain unfilled in the middle of the financial crisis.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 11:26 am

New Federal Program: Tax The Rich, Then Ask Them To Invest In Government Programs

uncle-sam1 It is a devilishly clever plan. The federal government proposes to raise taxes on hedge funds and private equity firms. Once that it accomplished, the Administration wants these same firms to invest in securities that need to be establish liquidity and legitimacy by being traded in the open markets.

The plan is simple.

According to The Washington Post, well-heeled investment firms “would be invited to buy up recently issued, highly rated securities. These securities finance consumer lending, such as credit cards and student and auto loans.” The government would loan as much as $1 trillion to these private money managers so that they could buy fairly “safe” paper.

The plan seems a bit off center. If the risk of these investments is so modest, why would the government want to loan out money so rich funds can buy them? If the fruits of the process will be such remarkably high yields why doesn’t the government put up the capital directly and give the anticipated gains to taxpayers?

The other reason the program may meet some resistance is the “class warfare” between the Administration and the wealthy which will cause a much higher tax bite for hedge funds and similar operations. Being beat up by the government and being asked to be its partner at the same time many not go down well with these firms.

Other than that, it is a great idea.

Douglas A. McIntyre

Source: 247 Wall Street | 6 Mar 2009 | 11:23 am

Europe Markets: Shares in Europe lower ahead of U.S. jobs data, banks drag

European shares edge higher on Friday, although gains are modest ahead of data expected to show the largest U.S. job losses in one month for 60 years.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 11:22 am

Wolseley well insulated as recession enters survival of the biggest phase

Wind bank to the end of November 2006 and our lead story about Wolseley's results. The world's largest distributor of plumbing and heating products announced 2000 job losses in its US operations.
Source: Telegraph Finance | 6 Mar 2009 | 11:18 am

Cut your salary before cutting staff

Think being your own CEO means you can't be laid off or have your paycheck pared back? Not quite. Half of the small business owners polled in a recent survey said they've cut their own compensation in response to the economic downturn.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 11:17 am

Pension deficits rise by £27bn in one day

Final salary pension schemes have endured one of their most volatile weeks on record as global stock markets have dived.
Source: Telegraph Finance | 6 Mar 2009 | 11:17 am

Dollar suffers ahead of jobs data

The dollar retreated on Friday as traders awaited figures from the US that were expected to show the country's jobs market took a severe hit in February
Source: Financial Times - US homepage | 6 Mar 2009 | 11:08 am

A Solution For Troubled Newspapers And Magazines: Internet-Only Products

pc2 No printed Wall Street Journal. No printed New York Times, or Newsweek or The New Yorker. That possibility grows more by the day.

Hearst, which said it would close it Seattle paper, the Post-Intelligencer, has told some members of its staff that they may be candidates to create an online version of the paper as its print version is shuttered.

According to the AP, “An unspecified number of the P-I’s 181 employees received `provisional offers’ Wednesday and Thursday to work for the online venture.”

Several large city dailies, including The Rocky Mountain News, have already folded. The Boston Globe is supposedly losing $1 million a week. Most analysts looking at figures from The Washington Post Company (WPO) say Newsweek loses money. The New York Times newspaper, owned by NYT (NYT) may loose money this year. The Wall Street Journal, part of News Corp (NWS) is losing advertising at an alarming rate.

The good aspect of having publications move to an “online-only” format is that the brands survive. The bad news is that most of the employees from the print property will not keep their jobs. Internet versions of publications often bring in only 5% or 10% of the sales that the physical versions of the properties do. But, the online business are not burdened with the costs of printing and distribution. Internet advertising is also more likely to grow than print is. Some major national weekly magazines and large business magazines like BusinessWeek have lost half of their advertising pages over the last two years. That trend is not likely to be reversed.

In the future, the big daily newspaper and national weekly magazine will not be printed at all. They will exist on the internet, run by much smaller staffs. But, at least they will exist.

Douglas A. McIntyre

Tagged: NWS, NWS-A, NYT, WPO

Source: 247 Wall Street | 6 Mar 2009 | 10:57 am

Why do telcos dig retail?

To executives of phone company BCE (BCE), which this week said it would acquire 756 consumer electronics stores in Canada from troubled retailer Circuit City, Tech Daily offers four words of caution: Nobody Beats the Wiz.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 10:56 am

American dream

The Beckham effect lifts US soccer
Source: BBC News | Business | World Edition | 6 Mar 2009 | 10:54 am

Indications: U.S. stock futures drift lower before payrolls

U.S. stock futures drift lower, with fresh bear-market lows seen on tap ahead of what could be the worst monthly employment in nearly 60 years.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 10:52 am

US unemployment expected to soar

US unemployment figures due later are expected to show the biggest monthly rise since October 1949.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 10:48 am

Citadel marketing new fund with lower fees: report

(Reuters) - U.S. hedge fund Citadel Investment Group LLC plans to roll out several new funds, including one with lower fees that will aim to make money on currencies, interest rates and other trades based on broad economic trends, the Wall Street Journal reported.

Source: Reuters: Business News | 6 Mar 2009 | 10:47 am

No More Stimulus Money For China Growth

china4 The Chinese government is hinting that it does not need to put any more money on the table to keep its economic growth levitation act going without any more magic.

The apparent decision by the communist central committee is likely to hurt the nation by undermining GDP expansion as factory and export activities slow.

According to Reuters, “China has no need for a huge new economic stimulus, not least because the government has already taken extra steps to boost growth, the former head of the National Bureau of Statistics (NBS) said.”

Leaving aside the opinions of high placed officials, China’s plans for 8% GDP growth this year may have already been severely crippled.

Its largest trading partner, the US, may face an economic contraction that is close to 10% this quarter. The numbers in the EU and UK are no better.

China does not have enough consumer demand inside its borders to hit its goals. Too many of the workers who used to be buyers of goods and services are losing jobs as factories close and they are forced to move to rural areas.

China may be talking about expansion but its worry should not be about its rate of growth. It should be more concerned about the chances of a recession

Douglas A. McIntyre

Source: 247 Wall Street | 6 Mar 2009 | 10:39 am

John Lewis sales fall 10% on late Mother’s Day

John Lewis, the department store, said that sales were 10 per cent lower last week than in the same period last year due to the late arrival of Mother's Day.
Source: Latest Business News from Times Online | 6 Mar 2009 | 10:35 am

WPP lowers 2009 revenue forecast; 2008 profit slips 5.8%

WPP Plc, the world’s largest advertising group, on Friday posts a 5.8% decline in 2008 profit, cut its revenue and operating margin forecast for 2009 and tells investors to expect only a “relative improvement” in the second half of the year.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 10:31 am

The Market Can’t Keep Going Down

angrybear5 One of the most frequent comments made by market experts and investors now that the indexes are reaching multi-decade lows is that the market can’t keep going down forever. It allows investors to feel something beyond the overwhelming pessimism that greets them every day when the bell rings at 9.30 and the trading starts

Of course, a mathematician can show anyone who has a minute’s time that the markets can go down for a nearly infinite number of days if the decreases get smaller and smaller. For investors who want to get a small fraction of their investments back sometime in the next decade this sort of academic argument may be didactic, but it has no practical use.
What is likely to happen to the market is that it will fall another 15% or 20% and then trade sideways, perhaps for several years. That is what happened from 1965 to 1981.There were peaks and troughs during that stretch and clearly traders made money on those. But, it was a particularly poor period for long-term investors who wanted to buy and hold.

In many ways, a market that keeps going down is a good market. If it has momentum in one direction, it may transfer that energy to a leg up. That happened in the late 1930s going into the 1940s and happened again at the beginning of the current decade.

This wish to see the market stop its drop is in many ways misplaced. Investors still have an excessive desire to see the market change direction while it is still too early. Getting money back into the market will require that a perception of value has returned in the form of lower prices in relationship to earnings and assets. That seems a long way off. And, it is, but the length of this stagnation depends on the violence and rapidity of the correction. The market is going down, probably much further. It can get there at a trot or a gallop. The process, in either case, will be remarkably painful. One just dispenses the punishment in slow motion.

The market can drop forever or at least it may seem that way. There is no point in sustaining the illusion that the market has to rise the way it did over the last several years. The economy may remain moribund and leave no reason for equities to rise.

The last few years have held out the promise that the market would go up year after year. This was never an assurance which could be kept. The people who made it took their cash out two years ago and live in an island off the south of France.

Douglas A. McIntyre

Source: 247 Wall Street | 6 Mar 2009 | 10:10 am

The Economics Of Hope

unemply The economy is losing between 600,000 and 750,000 jobs every month by every measure that the government and analysts use. This rate of job losses may go on for a relatively long period. This trend can cause people to believe that trying to find a job is hopeless and that the tidal wave of the recession will overflow the financial mooring of every person who has ever worked or may want to work again.

But, job losses in any downturn are net numbers and hiring does go on. Hiring new employees is almost subterranean and is rarely part of the reporting of the daily carnage that goes with mass layoffs and unemployment numbers.

Job creation is like every other part of the economic fabric. Even when an economy is at its worst, some small set of firms which usually have capital and a need for workers find that labor costs are so low that the risks of bringing in a new person or people is extremely modest. And, of course, if the burden of employing new workers is too great or the company’s prospects turn worse, the most recent people hired are often the first people fired.

Hiring a new person in a strong downturn takes a certain amount of courage. At this point courage is being aided by the calculus of workforce filled with a huge number of people who are willing to work for much less than what they were paid in their former jobs and are often overqualified for most new positions they might find. Investment bankers actually do look for work as retail store clerks if they need the money enough. Unfortunately, no company in the retail industry will hire a soul until the next holiday season.

The forces needed to create the right environment for new employment opportunities are simple to understand. The first is that not every enterprise can operate with half the number of people it had a year ago. In many cases it is simply impractical. A factory that still has the number of orders a twelve-hour shift of twenty people produced cannot do that work with ten people. Someone from the company retires, gets ill, quits, or, saints preserve us, finds a better job somewhere else. That person has to be replaced and can probably be replaced for less pay than the person who left. The number of applicants for the job may be a hundred times what it was a year ago. The employer has the pick of a large and almost certainly qualified field.

The other less attractive aspect of a very modest increase in hiring is that employers smell blood in the water now. They look at a line of two thousand people at a job fair that might have forty positions available in total and tell themselves that it is too good to be true. But, it isn’t. Those PhDs will actually take a job for $10 an hour. It may be the only way that they can survive.

The recession is still at a stage where for every person hired in the economy, ten may be fired. The liberating aspect of this is that companies now know that the markets for almost all goods and services will be down for a very long time. There are few illusions left that economic activity will be robust again in the second half.

From here on out, every once in a while, an employer will stick his head out of the storm shelter and see a hiring opportunity, and one he can take advantage of without risking his whole business.

Douglas A. McIntyre

Source: 247 Wall Street | 6 Mar 2009 | 10:05 am

Dollar falls back before U.S. jobs report

LONDON (Reuters) - The dollar rolled back sharply from three-year highs on Friday and demand for euro zone government debt rose as investors fretted that U.S. employment data would be worse than previously forecast.

Source: Reuters: Business News | 6 Mar 2009 | 10:00 am

Satyam approved to sell 51% stake

Fraud-hit IT firm Satyam wins approval from Indian financial authorities to sell a majority stake in itself.
Source: BBC News | Business | World Edition | 6 Mar 2009 | 9:38 am

Coca-Cola to invest $2 billion in China

U.S. beverage giant Coca-Cola Co. (KO) said Friday it plans to invest $2 billion in China over the next three years, on top of the $ 2.4 billion it has earmarked for acquiring Chinese beverage maker Huiyuan Juice Group Ltd.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 9:36 am

Dollar falls back before U.S. jobs report (Reuters)

Reuters - The dollar rolled back sharply from three-year highs on Friday and demand for euro zone government debt rose as investors fretted that U.S. employment data would be worse than previously forecast.

Source: Yahoo! News: Stock Markets News | 6 Mar 2009 | 9:35 am

Dollar falls back before U.S. jobs report (Reuters)

Source: Yahoo! News: Business | 6 Mar 2009 | 9:35 am

Wolseley raises £1bn axes dividend and unveils restructuring

The building supplies company announced plans to raise £1bn to reduce debt axed its dividend and unveiled a major restructuring.
Source: Telegraph Finance | 6 Mar 2009 | 9:35 am

N Korean threats prompt rerouting of planes

South Korea's two main airlines have diverted flights after North Korea warned it could not vouch for the safety of passenger aircraft while the peninsula was on a war footing
Source: Financial Times - US homepage | 6 Mar 2009 | 9:34 am

Tokyo, Hong Kong slide in Asia before U.S. jobs data

Most Asian markets end on a down note Friday, as financials and shipping shares take a beating on concerns about the global economy, and investors exercise caution before a key U.S. report on the jobs market.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 9:34 am

FTSE 100 flat at the open (AFP)

AFP - Stocks in London were flat at the start of trade on Friday, showing a gain of just 0.01 percent.

Source: Yahoo! News: Stock Markets News | 6 Mar 2009 | 9:22 am

Wolseley to raise $1.4 billion after posting six-month loss

U.K. building materials group Wolseley says Friday that it will raise around 1 billion pounds ($1.43 billion) from shareholders to reduce its debt levels, as it also reveals a hefty six-month loss and says it wants to exit one of its U.S. businesses.

Source: MarketWatch.com - Top Stories | 6 Mar 2009 | 9:19 am

Media Digest 3/6/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaper4 According to Reuters, Obama will start work on getting his healthcare plan passed.

Reuters reports that February joblessness is estimated to rise 648,000 for February.

Reuters reports that the pick for the No.2 spot at Treasury withdrew.

Reuters writes that the US will invite wealthy funds to invest in the bailout.

Reuters writes that the House approved an overhaul for how housing is treated in bankruptcy.

Reuters reports that the recession may be curbing some CO2 output.

Reuters writes that GM’s (GM) auditors raised concerns about the company’s future.

Reuters reports that Citigroup (C) may sell its Japanese brokerage.

Reuters reports that Coke (KO) will invest $2 billion in China.

Reuters reports that the Fed will not say who helped in the AIG (AIG) rescue.

The Wall Street Journal writes that a new bill will seek $500 billion for an FDIC fund.

The Wall Street Journal reports that China has expressed confidence in its economy.

The Wall Street Journal writes that lobbing has affected the FDA approval process in some cases.

The Wall Street Journal reports that GM (GM) has become more open to Chapter 11.

The Wall Street Journal reports that retail sales are showing some life.

The Wall Street Journal reports that Europe’s central banks are cutting rates to record lows.

The Wall Street Journal reports that GE (GE) will post a profit in its financial arm this quarter.

The Wall Street Journal reports that the number of overdue mortgages is up.

The Wall Street Journal writes that Exxon (XOM) will raise spending by 11%.

The Wall Street Journal reports that the IMF is urging global financial rules.

The Wall Street Journal reports that Citigroup (C) hit the penny realm.

The Wall Street Journal reports that Amazon (AMZN) will enter the used video game market.

The Wall Street Journal reports that Clearwire (CLWR) adjusted the timing of rolling out its WiMax network.

The Wall Street Journal reports that a corporate tax break is being revived in the budget.

The Wall Street Journal reports that the drop in their stocks and revenue is forcing big media companies to re-think their approach to the Internet.

The Wall Street Journal reports that Blockbuster’s (BBI) sales improved.

The Wall Street Journal writes that PC makers face a bumpy ride this year.

The New York Times reports that Seattle’s paper may go web-only.

The FT reports that China Mobile (CHL) may co-fund research for handsets.

The FT reports the home loan arrears effect one in nine US homeowners.

The FT reports that Chavez of Venezuela is stepping up his nationalization drive.

Bloomberg reports that the US probably lost the most jobs since 1949 in February.

Douglas A. McIntyre

Tagged: AIG, AMZN, BBI, C, CHL, CLWR, GE, GM, KO, XOM

Source: 247 Wall Street | 6 Mar 2009 | 9:12 am

WPP sees profits climb but expects tough 2009

WPP the world's largest advertising group saw pretax profits edge up in 2008 but warned that the first half of this year will be tough.
Source: Telegraph Finance | 6 Mar 2009 | 8:46 am

Citigroup to sell out of Japan broker Monex: report (Reuters)

Reuters - Citigroup plans to sell its 26 percent stake in Japanese online broker Monex Group Inc (8698.T) as part of the struggling U.S. bank's efforts to raise cash, the Yomiuri newspaper reported on Friday.
Source: Yahoo! News: Business | 6 Mar 2009 | 8:39 am

Lloyds rises on Government plan to increase stake

Shares in Lloyds, the bank group which rescued HBOS, soared by 7.4 per cent in early trading today as it emerged the Government was on the verge of increasing its stake in the bank from 43 per cent to about 60 per cent.
Source: Latest Business News from Times Online | 6 Mar 2009 | 8:32 am

Asia Markets And Europe Open 3/6/2009

jap1 Markets in Asia fell.

The Nikkei dropped 3.5% to 7,173.

The Hang Seng fell 1.8% to 11,980.

The Shanghai Composite was down 1.4% to 2.193.

At the open in Europe, The FTSE was off .4% The Dax fell .3% to 3,670.

The CAC 40 was off .2% to 2,573.

Data from Reuters and MarketWatch

Douglas A. McIntyre

Source: 247 Wall Street | 6 Mar 2009 | 8:26 am

U.S. job losses seen jumping to 648,000 in February

WASHINGTON (Reuters) - Job losses in the United States likely accelerated last month and the unemployment rate probably surged to a 25-year high as recession-hit companies took drastic steps to cut costs, according to economists.

Source: Reuters: Business News | 6 Mar 2009 | 8:15 am

Wolseley to tap investors for £1 billion

Wolseley, the world’s biggest distributor of building products, this morning announced plans to tap shareholders for £1 billion.
Source: Latest Business News from Times Online | 6 Mar 2009 | 8:07 am

Sell-off brings stock indexes down 4%, setting new bear-market lows

The Dow falls 281 points to 6,594, the S&P 500 sinks 30 points to 682, and the Nasdaq drops 54 points to 1,299 as investors grow increasingly despondent about the prospects for an economic recovery.

During the painful slide in stocks that began early last fall, even many investors who expected the bear market to deepen further were counting on an extended breather before another nose dive.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

KB Home ex-CEO Bruce Karatz accused of stock option fraud

A federal grand jury indictment alleges that Karatz, who resigned under fire in 2006, orchestrated the backdating of options to his own benefit.

Bruce Karatz, who rode the housing boom to become one of the highest-paid executives in the country, was indicted by a federal grand jury Thursday on charges of manipulating stock options -- becoming one of the few executives to face criminal charges in the nation's options backdating scandal.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

February retail sales' minor drop better than expected

Sales at major chain stores were down 0.1% compared with the same month in 2008, according to an industry group, which had expected a decline of 1% to 2%. Aeropostale saw an 11% gain.

Better-than-expected retail sales in February gave the nation's retailers a much-needed reprieve, but analysts Thursday cautioned that an industry recovery was still months away.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

GM bankruptcy fears rise on auditors' finding

GM's dilemma: Without a bankruptcy filing, the company's structural issues may never be resolved. But if it does file, its sales may dry up, threatening the automaker's very existence.

Who would buy a car from a bankrupt automaker?

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

SEC charges L.A. businessman Bruce Friedman with securities fraud

The agency accuses Friedman, convicted of grand theft in 1981, of stealing $17 million from investors. A judge freezes the assets of two Sherman Oaks firms he owns. ...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

At 50 years old, Barbie gets tattoos -- and a megastore in China

Toy maker Mattel hopes an update will help the classic doll appeal to new generations at home and abroad.

Barbie turns 50 this month, and to shake off a midlife crisis she's getting tattooed and opening the doors to her first megastore in China.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

Nissan's Cube is coolness in a box

Forget aerodynamics. This cruiser aimed at echo boomers and millennials comes with stability control and roominess that makes it more studio loft than economy car.

The science of aerodynamics tells us that air is a fluid with its own viscosity and inertia. When an object such as an automobile moves through it, the object is enveloped in a thin layer known as a laminar flow. Where the laminar airflow shears away from the surface it quickly degrades into a chaos of disordered air, or turbulence, which results in energy-sapping drag. The longer and smoother a surface -- the more it approximates a perfect teardrop shape -- the more aerodynamically efficient an object will be.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

Sell-off brings stock indexes down 4%, setting new bear-market lows

The Dow falls 281 points to 6,594, the S&P; 500 sinks 30 points to 682, and the Nasdaq drops 54 points to 1,299 as investors grow increasingly despondent about the prospects for an economic recovery...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

A clash over auto emission standards

California wants its own limits, saying carmakers can hit the mark. Others support a national standard. California...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

2009 Nissan Cube at a glance

'09 Nissan Cube Base price: $13,990

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

House OKs court-approved mortgage relief

The bill would allow bankruptcy judges to reduce principal amounts on loans for primary residences. It faces a stiffer test in the Senate. ...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

Nissan's Cube is coolness in a box

Forget aerodynamics. This cruiser aimed at echo boomers and millennials comes with stability control and roominess that makes it more studio loft than economy car. ...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

2009 Nissan Cube at a glance

'09 Nissan Cube Base price: $13,990
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

House OKs court-approved mortgage relief

The bill would allow bankruptcy judges to reduce principal amounts on loans for primary residences. It faces a stiffer test in the Senate.

In an attempt to ease the foreclosure crisis, the House on Thursday approved a major change to bankruptcy law that would give judges new powers to modify home mortgages.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

A clash over auto emission standards

California wants its own limits, saying carmakers can hit the mark. Others support a national standard.

California officials told the Environmental Protection Agency on Thursday that major automakers are already on track to meet the state's strict proposed limits on greenhouse gas emissions from vehicles.

Source: L.A. Times - Business | 6 Mar 2009 | 8:00 am

February retail sales' minor drop better than expected

State's proposed emissions rule sparks firestorm

The new standard would gauge a fuel's 'carbon intensity,' from its source to its burning. California regulators...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

At 50 years old, Barbie gets tattoos -- and a megastore in China

Toy maker Mattel hopes an update will help the classic doll appeal to new generations at home and abroad. Barbie...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

3 studios' Epix movie channel runs into tough times

The venture by Paramount, MGM and Lions Gate, which was supposed to revolutionize the pay-TV business, has been unable to secure distribution with a cable or satellite TV company. ...
Source: RSS feed - channel BNPaperBusiness | 6 Mar 2009 | 8:00 am

U.S. job losses seen jumping to 648,000 in February (Reuters)

Reuters - Job losses in the United States likely accelerated last month and the unemployment rate probably surged to a 25-year high as recession-hit companies took drastic steps to cut costs, according to economists.
Source: Yahoo! News: Business | 6 Mar 2009 | 7:53 am

WPP cuts targets but confident of 2010 upturn

WPP, the advertising company, this morning lowered its profit targets for the year but insisted that it is still confident of seeing an economic upturn next this year.
Source: Latest Business News from Times Online | 6 Mar 2009 | 7:51 am

Asian shares fall on concerns over banks

Asian stocks fell dragging the regional benchmark index to a fourth weekly decline on renewed concern losses at financial institutions will mount as the global recession deepens.
Source: Telegraph Finance | 6 Mar 2009 | 7:33 am

Google needs to grow up and pay a dividend

Google looks to be printing money as fast as the US government - it may pile up 21bn £14.8bn of cash by next year.
Source: Telegraph Finance | 6 Mar 2009 | 7:26 am

U.S. to invite wealthy to invest in bailout: report

WASHINGTON (Reuters) - The U.S. government plans to invite wealthy investors to invest in the bailout of the crippled financial system, The Washington Post reported on Friday.

Source: Reuters: Business News | 6 Mar 2009 | 7:23 am

Nespresso is Recession-Proof

nespresso_gc

The BBC’s Will Smale wrote a fascinating article about Nespresso, Nestle’s esspresso-in-a-pod product, which reported global sales of $1.7 billion for 2008. Overall Nespresso sales have grown an astounding 30% or more for eight years straight. The article explores the reasons behind Nespresso’s wild success:

Ease of Use: You simply pop the aluminium capsule or pod into the futuristic-looking coffee maker, automatically puncturing it in the process, and press a button that forces through the hot water. Seconds later you have a perfectly acceptable cup of espresso, and the used pod is ejected into the bottom of the coffee maker.

Good marketing that emphasizes exclusivity: “Consumers are automatically enrolled in a loyalty programme, and receive a regular glossy magazine that re-enforces the notion that consumers are members of an exclusive club.”

At the core of Nespresso’s aim for exclusivity is the fact that while the machines are widely available, you can only buy the coffee pods direct from the company. This can be done either via its website, over the phone, or from a very limited number of its own shops - which it prefers to call “boutiques”. Of which it has just five in the UK. The basic pods cost 25 pence each, but when postage and packing is added, the cost of each rises to 30p.

Nespresso coffee machines will only work with Nespresso capsules: “Nespresso is very good at working with the manufacturers to keep the cost of the machines down, and you can get them for less than £100, with special offers on top [such as cash back deals],” he says.

George Clooney: He defines suave for men, and makes women swoon. He’s the perfect brand ambassador.

This strategy reminds me a lot of Apple. It has the right products, the right vertical integration–you can only use iTunes with the iPhone, for example–and affords a feeling of exclusivity. The only thing missing is a powerful brand ambassador. Scarlet Johanssen, perhaps?

Nespresso’s success shows that Nestle’s innovation combination paid off handsomely. Nespresso is a smart product–but Nestle should also consider itself lucky. If it had released the product at the wrong time, say, in the middle of a bad recession, people might not have been interested in pricey coffee pods. Nespresso represents the kind of product every company hopes for.

Source: Business Pundit | 6 Mar 2009 | 7:17 am

Australian stocks: Market at weakest level in six years

PERTH - The Australian share market closed at its weakest levels in almost six years, weighed down by banks and resources stocks following a drop in oil and base metals prices and a plus plunge on Wall Street overnight. The benchmark...
Source: New Zealand Herald - Business | 6 Mar 2009 | 6:57 am

Obama plan to prevent foreclosures won't help many California homeowners

Nearly a third of the state's mortgage holders are underwater on their loans, many of them by amounts that would disqualify them for government-sponsored refinancing.

The Obama administration's plan to stave off foreclosures could fall flat in California, where nearly one-third of mortgage holders are underwater on their loans -- many of them by amounts that would disqualify them for government-sponsored refinancing.

Source: L.A. Times - Business | 6 Mar 2009 | 6:38 am

NZ stocks: Market tumbles after US plunge

After two sessions with solid gains, the New Zealand share market tumbled today following steep drops in United States equities. US stocks extended their slide to 12-year lows as General Motors' warning of possible bankruptcy and...
Source: New Zealand Herald - Business | 6 Mar 2009 | 6:17 am

Currency: NZ dollar little changed

The New Zealand dollar gave up some recent gains as the mood among investors switched back to risk aversion but then trimmed its losses. Dealers said that once the currency adjusted to the weakness in Wall Street and other global...
Source: New Zealand Herald - Business | 6 Mar 2009 | 5:46 am

Hidden Cuts in Business Travel: What to Look For (Deal of the Day)

Business travel always comes with plenty of hassles, of course, whether it's killer jet lag or crabby clients. But road warriors these days have a new foe to contend with: travel industry cutbacks.

While the down economy has provided vacationers with a host of new bargains, business travelers, already pressed by employers to tighten their belts, are discovering that the travel universe is becoming increasingly creative when it comes to cutting costs. And while some cutbacks are impossible to miss (have you flown lately?), others are subtler. At some hotels, for instance, once-standard perks like turndown service and 24-hour room service have gotten the ax. And with companies trimming staff, expect a longer wait for rental-car pickup, check-in and more. At the same time, the industry is awash in new charges for former freebies like hotel amenities, including gyms and saunas.

And these shifts may be just the beginning. According to government data, the U.S. leisure and hospitality industry lost 28,000 jobs this January alone. LaSalle Hotel Properties, owner of Boston’s Westin Copley Place and 30 others, recently announced staffing cuts of 20 percent, while marquee brands like Starwood and Marriott have seen their stock prices plummet by more than 50 percent.

Car-rental companies, too, are paring down; Avis Budget Group, for one, has cut 2,200 positions and plans to reduce costs by at least $150 million over the next several months. And just in case anyone was harboring some hope for the airlines, the latest estimates project a $2.5 billion industry-wide loss—so don’t expect a return of in-flight snacks anytime soon.

We feel your pain, frequent fliers. So we took a little business trip of our own, shrunken expense account and all, to find out exactly where the industry cutbacks are irking travelers -- and where there might be unexpected benefits. Our itinerary included two prime destinations for the PowerPoint set: Chicago, one of the country's biggest conference hubs, and Miami, which, well, just seemed like a pleasant place to do a little midwinter business.

Walking through the doors of New York’s John F. Kennedy Airport, we’re already bracing ourselves for the worst. After all, like most travelers, we’ve come to expect a charge for everything, including soda ($2 on US Airways) and pillows and blankets (now $7 on JetBlue). Even before hitting the security line, we’ve already forked over the corporate card twice, once for the $15 baggage fee and again for a $39 “premium economy” upgrade—still coach, but at least our knees won’t have indents in them at the end of the flight. The airlines have also cut their seating capacity to the lowest level since 1985, making it harder to find direct flights on many routes.

There may be an upside to these cuts, though—our United flight actually arrived on time, and we may have more than decent weather to thank. With fewer planes clogging the skies and runways, says Joe Brancatelli, editor of business-travel site JoeSentMe.com, the overcrowding that triggered many prior delays seems to be improving. In fact, on-time arrivals for the past four months came in at 80 percent, four points higher than a year earlier.

Arriving in Chicago, it still looks like business as usual, as we spot convention groups ranging from plastic surgeons to evangelical ministers. But with room-occupancy rates down nearly 13 percent this January, well below the national average, the city’s hotels are feeling the pinch. To find out what really goes into running a hotel in a recession, we head to the Hotel Monaco, where general manager Nabil Moubayed shows us around the striped guest rooms and fire-lit lobby of his clubby property.

But with room-occupancy rates down nearly 5 percent in the first 10 months of 2008, well below the national average, the city's hotels are feeling the pinch. To find out what really goes into running a hotel in a recession, we head to the Hotel Monaco, where general manager Nabil Moubayed shows us around the striped guest rooms and fire-lit lobby of his clubby property.

The biggest change here has been staffing, he says -- no surprise, since payroll is one of hoteliers' top three expenses. The Monaco has stopped filling open positions and uses existing employees to plug holes, like having the concierge cover the front desk when things get busy. It has also scaled back room-service personnel, now using just one employee to cover the graveyard shift. Finally, the hotel has dropped the position of housekeeping inspector, the person who ensures that each room is clean before a new guest arrives. Instead, housekeepers themselves now decide when their rooms are ready. "When times are tight, you have to be creative," says Moubayed. "We wouldn't survive otherwise."

Though other hotels in the city are less forthcoming about how they're reacting to the economy, we do see signs that the Monaco isn't the only one making cutbacks. Checking into the Hyatt Regency Chicago, for instance, we notice the previous guest's room-service dishes outside our door. Not so unusual -- except they're still there when we check out the following morning.

The hotel says the incident "was in no way a result of a reduction of staff," but since our visit, it has cut employees. We also experience our share of increased nickel-and-diming, as when we discover the hotel's latest addition, eight new computer terminals distributed throughout the property.

Though we're pleased to be able to check e-mail without trekking three floors down to the business center, we should have known there would be a price -- in this case, $3.50 for five minutes and another 75 cents per printed page. General manager Patrick Donelly says the business center charges identical rates. "These stations were intended to provide convenience to our guests," he says.

Day three of our trip puts us in sunny Miami, an up-and-coming business destination, thanks to its three massive convention centers. We've rented a car (a Hyundai for $123 a day? Surprise! The rental-car industry has compensated for tough times by jacking up prices on popular gas-friendly models) to make our way to the luxe Loews Miami Beach Hotel, where we run into fellow traveler Paul Westbrook relaxing at the bar. The Dallas-based dental-lab manager isn't worried about cutbacks, saying that he thinks hotel service has actually improved in recent months. At Loews, for example, the desk clerk offered him a beach-view upgrade without his even asking.

Actually, frequent travelers like Westbrook may be in the best position these days, as hotels increasingly work to hold on to loyalty-club members and other repeat guests.

Just looking around the sprawling hotel, with its pool concierge and six flashy restaurants, it's hard to imagine that any expense has been spared.

But there are indications that the recession is making its mark. In the lobby many of the bouquets of fresh flowers have been swapped for longer-lasting plants, while the posh hotel boutique is in fire-sale mode, full of designer clothes marked down by 40 percent or more. Little shifts have happened in the guest rooms, too, with Loews now delivering newspapers by request only and restocking those tiny soaps and shampoos only after they're used up. "It's not as wasteful, which I think people appreciate," says a hotel spokesperson, explaining that the hotel is making an effort to be more eco-friendly. But when we try to squeeze in an evening workout, we find the gym closed an hour before its posted time. It turns out the facility has very recently scaled back operating times -- because, the hotel says, few guests used the gym after 7 p.m. But hey, at least we saved the extra $10 entry fee.

So how do you wrap up a four-night, two-city business trip? We can't imagine a better choice than hitting the spa, especially since the nearby Conrad Miami hotel is running a $100 massage offer. But even there, under the magic hands of the masseuse, there's no escaping the Dow. What do they call the special? "Downtime in the Downturn."

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 | 6 Mar 2009 | 5:00 am

Dell's Down, but Hardly Out (Deal of the Day)

IS DELL DEAD? READ TECHNOLOGY BLOGS AND Wall Street research about the personal-computer seller, and it's clear many commentators are thinking along such downbeat lines. After all, Dell's business -- and its shares -- both resemble shrunken versions of their once-glorious selves. The company reported last week that its fiscal fourth-quarter net income plummeted nearly 50% amid a steep downturn in sales, while its stock now trades for $8.53, far below the $58 a share it fetched in March 2000.

It's far too soon, however, to hang a "Do Not Resuscitate" sign on Dell's door. For one thing, the Round Rock, Texas, company (DELL) is sitting on $9.5 billion of cash, equal to $5 a share. Back that out of the stock price, and you're paying just $3.61 a share for a computer-wholesaling business that just netted $2.5 billion, or $1.39 a share in the fiscal year ended Jan. 30, and could earn $1.11 in fiscal '10. Average these estimates, and the business sports a price/earnings multiple of just under three.

You won't find Dell's other key asset on the balance sheet, but in the executive suite. Founder, Chairman and Chief Executive Michael Dell returned to lead the company about 25 months ago, and is busily crafting a turnaround strategy to see it through some of the darkest days the U.S. has endured in decades. If Dell, the CEO, can implement his plans, which include a combination of cost cuts and new products and services -- and arguably ought to include a potentially transformative acquisition -- shares of Dell, the company, could get a new lease on life. And a bid, down the road, of as much as 20. Dell executives declined to comment.

For now, pessimism rules. Amid the global economic rout, PC sales have plunged, and IDC, a market-intelligence firm that tracks demand, sees a continuing erosion. Both consumers and corporations have delayed purchases; the latter is particularly painful for Dell, as corporate buyers still account for almost two-thirds of its sales, which topped $13.4 billion in its latest fiscal year.

Dell is more exposed to the PC slump than either Hewlett-Packard (HPQ) or Apple (AAPL), both of which also recently reported disappointing earnings. The toll was apparent in Dell's fourth-quarter results: Revenue fell 16%, to $13.4 billion, and earnings from operations slumped 30%, to 29 cents a share, two pennies more than the market's subdued expectations. Nor did management say anything to dispel the gloom.

In a conference call with analysts, Dell executives focused on the company's cost-cutting initiatives, particularly a plan to eliminate $4 billion in costs in the four years ending 2011. That's commendable, and overdue. In the past three years, Dell has lost the competitive edge it enjoyed for so long from its low-cost assembly lines, mainly because rivals like HP have been opening even lower-cost plants in China. Now it's Dell's turn to play cost catch-up.

The company's other turnaround efforts have borne little fruit so far. Plans to boost higher-margin server and services sales have stalled, while a deliberate move away from direct consumer sales via the Internet has flopped. Although Dell PCs can now be purchased in 24,000 retail outlets, including Wal-Mart and Best Buy stores, Dell gets only 2% more revenue from the consumer than it did a year ago.

Nothing came, either, of last year's carefully leaked rumors that Dell would try to leverage its brand name with a planned MP3 music player and smart cellphone. But that's probably a good thing. It's difficult to see what Dell could bring to a party that includes Apple's iPod and iPhone, and Research In Motion's (RIMM) BlackBerry.

"A revitalized Dell must first accept that the Dell of 1999 is gone forever, and that the company must go down a new and different road to prosper," says Richard Kugele, an analyst at Needham.

First, says Kugele, the company should accept that expansion into consumer products like smart phones would be stupid, as would any grand plan to try to grow consumer PC sales. It would be best, he argues, for Dell to expand in its core commercial market via the sale of higher-value software and services. But the only way for Dell to "really make itself over" would be through an acquisition, he says, noting that NetApp (NTAP), a leading provider of storage and data-management solutions, and Accenture (ACN) might make logical targets.

For that matter, Dell itself could become a takeover target, given its sterling brand, entrenched manufacturing network and not least, that stash of cash. That the patient is under the weather is all too clear. But nearing death's door? Not a chance.

The Bottom Line
Dell's shares have been cut to 8.53 from a high of about 50. If the company can execute on a turnaround plan, its stock could rebound to 20. But the comeback won't come quickly.

Source: SmartMoney.com | 6 Mar 2009 | 5:00 am

Are You Paying More for Lower Returns? (Ticked Off)

You’d think that mutual fund companies, struggling with investors yanking their money out after months of abysmal returns, would maybe cut them a break. But no, the current strategy is more akin to pouring salt on an open wound. Investors aghast over their funds’ poor performance may be in for another shocker on their next statement: higher fees. Thousands of fund companies increased fees last year in an attempt to cover the costs of running their funds, and analysts expect more to follow in 2009.

Perhaps most notably, Fidelity’s flagship Magellan Fund (FMAGX) increased its expense ratio by 36% in 2008, to 72 basis points from 53 basis points — the difference between a $72 fee and a $53 fee on a $10,000 investment. Fidelity isn’t alone, though. Putnam Diversified Income fund’s (PDVRX) expense ratio ticked up to 1.29% from 1.23% on some of its share classes.

For many funds, the fee increases aren’t a result of new thinking. Instead, the so-called “breakpoints” built into the funds’ fee schedules — which help investors by lowering fees when the funds’ assets rise — are working in reverse by increasing fees when the funds' asset levels fall off significantly. Indeed, expense ratios for more than 5,000 of the roughly 20,000 mutual funds on the market went up last year, mostly because of precipitous drops in asset levels, says Morningstar analyst Andy Gogarty. Expenses for American Century’s International Discovery fund (TWEGX) rose 11% due to falling assets, according to its most recent annual report, to 1.52% from 1.37%, while its International Growth fund (TWIEX) rose to 1.40% from 1.31%. American Century says the funds didn’t actively change the fees; the increases were "mathematical," and the firm sent out a letter to inform investors.

Smaller and newer mutual funds are the most likely candidates to increase fees after asset levels fall, since the funds' costs are spread across fewer investors. But don’t be too quick to scrap a fund solely because of slight fee increases. If you think the fund’s strategy is going to outperform others over time, a marginal fee increase "shouldn’t turn you away," says Gogarty.

Source: SmartMoney.com | 6 Mar 2009 | 5:00 am

9 Stocks That Could Double Your Money (Screens)

“Change is coming,” promised both presidential candidates last year. Pocket change has arrived, looking at share prices of some of America’s largest financial companies. Citigroup (C) briefly joined the less-than-a-buck club Thursday. Other members include American International Group (AIG), Freddie Mac (FRE) and Ambac Financial Group (ABK).

When the Dow Jones Industrial Average was last this low, Michael Jordan was leading the Chicago Bulls to a basketball championship and the must-have device was the StarTac flip-phone from Motorola (MOT). (Motorola itself has lost about nine-tenths of its value since then.) I’ve made it no secret that I think stocks, while fairly priced today, could head even lower. Investors should accordingly keep two years of living expenses in cash and favor stocks with big, safe dividend yields to reinvest.

I never thought I’d one day think back on my middle-school math book for solace as a stock investor. But the “Rule of 72” is on my mind. Divide a given interest rate into 72. The result, more or less, is the number of years needed to double your money. So a compounded 6% return doubles your money in about 12 years. A 7% return takes just over 10 years. The opposite works, too. Want to double your money in five years? You’ll need a return of more than 14% a year.

The Rule of 72 works pretty well for reinvested dividends, too, although since dividends are often paid quarterly and therefore compound more often, the wait is a touch shorter. Two conditions: The dividends must keep coming, and the stock price mustn’t plunge all the way through to the end of the waiting period. Temporary drops are OK, even welcome, since reinvested dividends will buy shares at the lower prices.

Viewed that way, here are some stocks that might double your money, even without big price gains. No guarantees, obviously.

14 years

You’ll need at least 5% a year in dividends. Food stocks like Heinz (HNZ) and Kraft (KFT) pay that much. So does Boeing (BA), which I particularly like. Its shares, at less than six times this year’s earnings forecast, are priced as though mankind has come up with something better than airplanes for long-distance travel. And Genuine Parts (GPC) looks likely to profit from all those cars Americans aren’t buying, since it sells the parts needed to keep old cars running.

12 years

That’ll take a 6% yield. Merck (MRK) seems capable of keeping its meaty payment coming. Philip Morris International (PM), too. Verizon (VZ), another high-yielder, is growing its broadband unit about as fast as it’s losing business in its landline division, resulting in flat profits at the moment — a fairly enviable state.

10 years

Dividends of 7% and up are suspicious. Be careful of stocks whose prices are being pounded on the likelihood that dividend cuts are coming. Pitney Bowes (PBI) seems a good bet, especially since it recently increased its payment. Egg producer Cal-Maine Foods (CALM) yields 6.9% but is something of an odd bird; it pays one-third of profits as a variable dividend. With shares at less than four times this year’s earnings forecast, such a policy could produce a yield of greater than 8%.

Source: SmartMoney.com | 6 Mar 2009 | 5:00 am

5 Ways to Nab a Better Severance Package (Deal of the Day)

Getting handed the pink slip has become an all-too-common occurrence these days. The jobless rate reached 7.6% in January -- a 16-year high, according to the Labor Department -- and economists aren’t anticipating those figures to peak anytime soon.

Numbers like that not only mean it 's tougher to find a job, but also that -- should you lose yours -- whatever income you have has to last longer. One way to ensure you're covered is to start negotiating for a better severance deal as soon as the boss soberly calls you into his office.

Workers often sign their severance agreements immediately, out of fear or a sense of powerlessness, says Alan Sklover, an employment attorney at Sklover, Donath & Felber. But like any business transaction, these packages are negotiable. Reducing a work force is an expensive undertaking and companies create a budget just for that purpose. They also tend to put aside reserve funds for unexpected issues or events, says Sklover. “Ninety-nine percent of the time there’s some money left over for people who ask for it,” he says.

While companies aren't obliged to offer severance packages, many do. According to a survey by consulting firm Watson Wyatt conducted last month, of the 52% of companies that had layoffs, 29% offered enhanced severance benefits, including extended pay, health coverage and job search assistance. Some companies even let ex-employees keep their laptops.

Want to get all you can out of your former employer? Follow these tips to help you negotiate the best severance deal.

Deal directly with the boss

Unless you have the ear of top human resources manager, it’s probably best to skip that department when hammering out severance terms, says Sklover. “Their job is to get you out quick, quiet and cheap. You should [talk] to someone who has the authority to tell HR what to do,” he says. That could be your boss, head of your division or even the CEO.

Delay your departure

Resist the urge to run out of the office the minute you receive the bad news. In fact, try to postpone your departure for as long as possible. Not only does staying employed make you more attractive to prospective employers, but the extra few weeks' worth of paychecks will help you get by longer.

Say you’re in the midst of a project that will take another two months to finish. Ask your boss if you can stay on until the project is completed. Explain to her in writing the tasks you’re working on and the risks to the business if it’s put on hold, says Bill Belknap, a career coach with the Five O’Clock Club, a coaching and outplacement service.

Extend health benefits

If you don't succeed in extending your time in the office, then ask that your health benefits be maintained through the time you're being paid severance -- or perhaps even longer. So, if you receive three months’ of severance pay, request that your health coverage also last three more months. Doing so could save you plenty of money. The average Cobra premium costs $388 a month for individuals and $1,069 for families, according to Families USA, a health care nonprofit. (Note that the recently passed Stimulus Act provides a 65% subsidy to help unemployed workers afford Cobra, which will lower those premiums to $135 and $375 a month, respectively.)

Vest stock options or get your bonus early

Should you get laid off just a matter of months before your stock options vest or bonuses are doled out, ask for those perks now. Request that your employer expedite the vesting of your options or at least prorate the bonus plan so you can receive what you're due, says Andrew Milne, an employment attorney with Garson Claxton.

Stay on as a freelancer or consultant

Can you provide a vital service that your employer will require down the road? If the company needs you to close a deal or meet with a client, make yourself available on a freelance or consulting basis, says Belknap. Not only will the company avoid having to train someone for your old job, but it will also save money (after all, they won't be paying for all your benefits or your full salary). Meanwhile, you have a stream of income -- albeit a diminished one.

Getting notice

If you were one of many companywide layoffs, your employer is required to give you advance notice under the federal WARN Act, or the Worker Adjustment and Retraining Notification Act. WARN requires employers with 100 or more employees to give 60 days notice before closing a plant or engaging in a mass layoff, or they will have to pay dislocated workers 60 days of wages and benefits. If employers give only 30 days notice, they must pay 30 days severance.

Some states, including Wisconsin, Illinois and California, have adopted their own beefed-up versions of the regulation. New York, for example, increased the notice employers must give workers to 90 days from 60. It also made the law applicable to firms that lay off 25 employees, compared with the previous minimum of 50.

How do you know if you and your company qualify? Your state’s employment office should be able to tell you, and some state bar associations and law school clinics offer free advice as well, says Rick McHugh, staff attorney at the National Employment Law Project, a worker advocacy group.

Readers: Do you have a severance story to share or a question to ask? Email us at ask@smartmoney.com.

Source: SmartMoney.com | 6 Mar 2009 | 5:00 am

Senate delays vote on spending bill

The Senate postponed a planned vote on a $410 billion spending plan Thursday, with Democratic leaders saying they would allow Republican changes to the bill to be considered after coming up just short of the support they needed.
Source: Business and financial news - CNNMoney.com | 6 Mar 2009 | 3:20 am

Real estate firm ordered to pay $1m for misleading conduct

The Supreme Court has ordered Premium Real Estate to pay an Auckland couple almost $1 million after their Castor Bay home was sold to a property developer for $2.5 million who then resold shortly afterwards for $3.5 million. The...
Source: New Zealand Herald - Business | 6 Mar 2009 | 2:45 am

Profits down at ANZ-National Bank

ANZ National Bank, New Zealand's largest bank, reported a lower quarterly profit due to higher bad debt provisions but said its underlying business is resilient. The after-tax profit of $210 million in the three months to December...
Source: New Zealand Herald - Business | 6 Mar 2009 | 2:30 am

Blue Chip's Bryers set to relist company on Aust sharemarket

The co-founder of collapsed property investment company Blue Chip plans to relist one of his companies in Australia despite facing court charges here. Mark Bryers had been expected to appear in court in Auckland last week to face...
Source: New Zealand Herald - Business | 6 Mar 2009 | 2:00 am

AAPL Headlines Roundup: March 2-6

apple-logo12
Given the volume of Apple newsflow, we hope this end-of-week review helps. We’ve included important headlines and a few sleepers, aggregated from Apple Investor News:

• Why is Apple Living in Denial? – Forbes says Apple doesn’t get the severity of the recession, and chastises it for making only minor price cuts to its refreshed desktop Macs, announced Tuesday. Some analysts agreed. Didn’t Apple just have a fabulous holiday season keeping prices intact? Certainly this current quarter — AAPL’s first non-holiday, middle-of-recession quarter — will provide clarity on this issue. But if Apple can keep within 5% of its projections, it will be seen as an accomplishment. And it’s good that Apple isn’t so trigger-happy to dilute its brand with excessive price cuts.

• Apple So Far Immune to PC Price “Collapse” – Another view of the pricing story.

• A Tale of Apple And Palm. Huh? – An analyst downgrades Apple and CNBC’s Jim Goldman digs deeper to ask him why.

• Amazon Launches Kindle App for iPhone – Widely covered on Wednesday, this is another indicator that the iPhone is a mobile platform, not just a smartphone. Is the iPhone for avid readers? Of course not. But for an occasional read, it’s one more item on a growing list of iPhone capabilities.

• iPhone Takes Global Lead in Browser Stakes – Again, think mobile device platform, not just smartphone. Less than two years after its debut, the implications of this are noteworthy.

• China Unicom Chairman Acknowledges iPhone Talks – iPhone in China is inevitable.

• Melinda Gates Admits to Having iPhone-Envy – A Vogue interview says Bill won’t let anyone in his family own an iPod or iPhone. I’ll leave you to assess this one.

And finally, no new stories on Steve Jobs this week.

Frank Cioffi

Frank Cioffi is editor of Apple Investor News

Tagged: AAPL

Source: 247 Wall Street | 6 Mar 2009 | 1:47 am

Mortgage woes break records again in 4Q (AP)

AP - Foreclosures are spreading by epidemic proportions, expanding beyond a handful of problem states and now affecting almost 1 in every 8 American homeowners.

Source: Yahoo! News: Business | 6 Mar 2009 | 1:44 am

We need Doha more than ever, says Lamy

The state of the world economy means the value of the Doha Round as an insurance policy against protectionism has increased, World Trade Organisation director-general Pascal Lamy says. "Eighty per cent of the job is done so 20...
Source: New Zealand Herald - Business | 6 Mar 2009 | 1:30 am

US invites Iran to join Afghan talks

The Obama administration made its sharpest break with the foreign policy of former president George W. Bush by inviting Iran to an international conference later this year on Afghanistan's future
Source: Financial Times - US homepage | 6 Mar 2009 | 1:24 am

Obama says health reforms cannot wait

The president pledged to 'fulfil the promise of healthcare in our time' as he launched a fresh push to overhaul the US health system
Source: Financial Times - US homepage | 6 Mar 2009 | 1:21 am

After The Close - Thursday

MARVELL TECHNOLOGY (MRVL), a chipmaker, said Q4 EPS fell 75% to 5 cents ex items, but topped views by 4 cents. Sales dropped 35% to $513 mil,...
Source: Investor's Business Daily: BUSINESS | 6 Mar 2009 | 1:04 am

Bailout Bandwagon Rolls, With No Room For Housing Investors

Investors are left out of the $75 billion housing bailout just detailed by President Obama's administration.
Source: Investor's Business Daily: BUSINESS | 6 Mar 2009 | 1:04 am

In Brief - Thursday

K-Swiss (KSWS), the shoemaker, reported a Q4 loss of 39 cents a share, missing views by 17 cents. Revenue tumbled 28% to $56 mil, above estimates....
Source: Investor's Business Daily: BUSINESS | 6 Mar 2009 | 1:04 am

Despite Stingy Consumers, Teen Retailer Moves Trendy Clothes

How do you get recession-battered consumers to loosen their purse strings?
Source: Investor's Business Daily: BUSINESS | 6 Mar 2009 | 1:04 am

Business Briefs - Thursday

Terra's board rejects rival's bid. The fertilizer maker's board urged shareholders to reject a hostile buyout offer from CF Industries CF, saying...
Source: Investor's Business Daily: BUSINESS | 6 Mar 2009 | 1:04 am

Trends & Innovations - Thursday

Calling deadly for walkers, drivers
Source: Investor's Business Daily: BUSINESS | 6 Mar 2009 | 1:04 am

Stock takes : Solving the world's economic woes is easier online

Just suppose the internet existed in 1929. "How might the Great Depression have been different?" ask the creators of new website EconomicTurningPoint.com. "The internet is a tool of global communication. If it had been available...
Source: New Zealand Herald - Business | 6 Mar 2009 | 1:00 am

House approves mortgage bankruptcy overhaul (Reuters)

Reuters - Bankruptcy judges could cut the mortgage debt of homeowners in bankruptcy court as a last resort to avert foreclosure, under a bill approved by a 234-191 vote on Thursday in the U.S. House of Representatives.

Source: Yahoo! News: Business | 6 Mar 2009 | 12:54 am

Japanese stocks tumble after Wall Street plunge (AFP)

AFP - Japan's Nikkei stock index lost more than three percent in early trade Friday after Wall Street tumbled overnight amid a wave of bad corporate news and silence from China on new economic stimulus measures.

Source: Yahoo! News: Stock Markets News | 6 Mar 2009 | 12:50 am

IMF urges financial regulation co-ordination

Financial regulators must agree binding international codes of conduct to prevent chaos when crises hit banks operating across national borders, the International Monetary Fund has warned
Source: Financial Times - US homepage | 6 Mar 2009 | 12:49 am

GE CFO sees no "time bomb" in finance arm

BOSTON (Reuters) - General Electric Co acknowledged on Thursday that a cut in its top-tier credit rating was possible, but its chief financial officer said there was no "time bomb" hidden in its hefty finance arm.

Source: Reuters: Business News | 6 Mar 2009 | 12:37 am

US home loan arrears affect one in nine

One in every nine homeowners with a mortgage was behind on payments or in some stage of foreclosure at the end of 2008, as mounting job losses exacerbated the housing crisis
Source: Financial Times - US homepage | 6 Mar 2009 | 12:10 am

Paul Grant directs Robert Clack School turnaround

Paul Grant only realised what he had let himself in for when he found himself parked in a minibus in the middle of a playing field, waiting to catch children who were trying to escape from school.
Source: Latest Business News from Times Online | 6 Mar 2009 | 12:00 am

Millions left out of pocket by savings that offer no return

Almost half of savings accounts will offer no interest at all from next month after yesterday’s cut in the base rate to 0.5 per cent.
Source: Latest Business News from Times Online | 6 Mar 2009 | 12:00 am

Easy does it as Bank promises option of last resort will work

The Bank of England’s moves to fight the recession and secure economic recovery by “printing money” are guaranteed to prove successful, its Governor insisted last night.
Source: Latest Business News from Times Online | 6 Mar 2009 | 12:00 am

Nuclear waste clean-up drive still lacks leader

The Government’s handling of the nuclear power industry’s rebirth was attacked by MPs last night as it emerged that the executive responsible for the £73 billion clean-up operation has still not been replaced eight months after his departure.
Source: Latest Business News from Times Online | 6 Mar 2009 | 12:00 am

Are hedge funds banking on insurance killing?

Are life insurance companies the new banks? They seem to think so. Aviva, the largest British insurer, was blaming bear raids by short-sellers yesterday for the astonishing 33 per cent plunge in its share price. Investors seem inclined to agree, for other reasons, predicting that some of the big household name insurers, including Aviva, Legal & General and Prudential, will have to raise bucketloads of money from their shareholders.
Source: Latest Business News from Times Online | 6 Mar 2009 | 12:00 am

How the Dow Jones industrials fared Thursday (AP)

AP - Investors retreated from Wall Street again, driven by worries about the nation's big banks and General Motors Corp.

Source: Yahoo! News: Stock Markets News | 5 Mar 2009 | 11:21 pm

Pac Brands 'like Feltex rerun'

Concerns have been raised about the future of the remaining jobs at struggling clothing manufacturer Pacific Brands, which this week cut 89 jobs in New Zealand and shed almost 2000 in Australia last week. Pacific Brands said it...
Source: New Zealand Herald - Business | 5 Mar 2009 | 11:00 pm

Fed Refuses To Name Names

State and federal regulators appeared on Capitol Hill today to answer questions about the federal government's bailout of AIG. Things got heated when Banking Committee Chairman Senator Chris Dodd asked Federal Reserve Vice Chairman Donald Kohn to reveal which companies may have benefited from the government's bailout of the insurance giant. Kohn refused:

I would be very concerned that if we started revealing lists of names of people who did transactions with companies who later came in under government protection, got capital that sort of thing, that people just wouldn't want to do transactions with companies.

Watch the full exchange after the jump.

The Fed's refusal to turn over the names has already led some to speculate that it could be because those who benefited from the rescue are outside the U.S.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 10:54 pm

China Mobile in research offer

World's largest mobile operator by market capitalisation offers to pay leading handset makers to help it solve severe technology problems with 3G
Source: Financial Times - US homepage | 5 Mar 2009 | 10:45 pm

Write-Offs: 03.05.09

$$$ Can Ruth Madoff Keep The Penthouse? [Dealbook]

$$$ Financial journalism and its critics [The Deal]

$$$ Deep Thoughts From Howard Marks [zero hedge]

Source: Dealbreaker | 5 Mar 2009 | 10:40 pm

NZ Shares: Market tumbles after US plunge

After two sessions with solid gains, the New Zealand sharemarket tumbled early today following steep drops in United States equities. US stocks extended their slide to 12-year lows as General Motors' warning of possible bankruptcy...
Source: New Zealand Herald - Business | 5 Mar 2009 | 10:39 pm

Dow and S&P hit 12-year lows (Reuters)

Reuters - Stocks slid on Thursday with the Dow and S&P falling to 12-year lows as General Motors' warning of possible bankruptcy and concerns about the banking system's fate reinforced investors' reluctance to take on risk.

Source: Yahoo! News: Business | 5 Mar 2009 | 10:29 pm

Dow and S&P hit 12-year lows (Reuters)

Source: Yahoo! News: Stock Markets News | 5 Mar 2009 | 10:29 pm

What Happened to the Obama Web Team?

The Obama folks were quick to exploit the internet during the campaign.
So why this?

"This site is coming soon"

It's been three weeks now...

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 10:29 pm

Yamada Sees 44% of NYSE Stocks Under $10 as `Shocking'

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 10:20 pm

Stock markets pounded by bad news, mum China (AFP)

AFP - Stock markets around the world took a beating Thursday from a spate of bad recession news, worries over the financial sector and a deafening silence from China on much hoped-for new stimulus measures.

Source: Yahoo! News: Stock Markets News | 5 Mar 2009 | 10:18 pm

Ford Shorts: 13% Carrying Costs

The Huffington Post is running a piece on Morgan Stanley's effort to find borrows for Ford shorts a few days ago. In short: 13% carrying costs. The shorts must be having quite a time finding borrows.

Morgan Stanley's 13% Payout Offer To Short Ford Stock [The Huffington Post]

Source: Dealbreaker | 5 Mar 2009 | 10:15 pm

Presented By: Mailing Services and Database Marketing Companies Leverage Cutting Edge Tracking System from CSG Direct, Inc.

Database marketing companies have redefined the mailing services industry thanks to the innovative US Mail tracking system by CGS Direct, Inc. Over 15 million pieces of Direct Mail Advertising have been tracked with CSG Direct's cutting edge system, which monitors mail in real time. (PRWeb Mar 5, 2009)
Read the full story at http://www.prweb.com/releases/2009/03/prweb2197394.htm

>> Read more

Ads by Pheedo

Source: Dealbreaker | 5 Mar 2009 | 9:24 pm

Severance Watch '09: MER

It seems like most of Team Merrill not invited to stay on with the glory that is the Bank of Amerillwide franchise has been shafted in the way of severance but at least one group being put out to pasture is apparently not faring so badly! Those cut from MER recruiting are said to be receiving: 3 months pay, 3 weeks for every year of employment, and full vacation pay out.

Source: Dealbreaker | 5 Mar 2009 | 9:24 pm

Obama Portfolio Update

Well, after an optimistic run yesterday, the tide turned on the First Portfolio Manager today. The Obama Portfolio sunk back into the red after a positive day yesterday. Keep your chin up, things may well improve!

The Obama Portfolio (Since Inception): -2.62%

Related:

Breaking: Obama Called Equities Bottom

The Obama Portfolio

Source: Dealbreaker | 5 Mar 2009 | 9:08 pm

Retailers report sales declines in February (AP)

AP - After hibernating since last fall, shoppers may be carefully crawling out of their caves to restock their pantries and buy a few more necessities.

Source: Yahoo! News: Business | 5 Mar 2009 | 9:06 pm

What's In A Dow?

It's almost like not paying your dues at the tennis club. First the furtive glances. Then the softer whispers. The loud whispers. The white envelope with your name written in red pen discovered one afternoon in your inbox. God forbid you take an arrest for securities fraud, or selling PCP. Security will finally toss you, puking up the Waldorf salad from earlier in the back of a paddy wagon after taking a few blows to the midsection.

That's probably about how Citigroup, and a few others feel right about now. The exclusive club of the Dow is no longer for them and they are likely to be invited to leave eventually (don't ~~taze~~delist us, bro!)

As Citi trades below $1, speculation again heats up that Citi, Bank of America and GM will almost certainly be removed from the Dow Industrials. Lists are being circulated for likely candidates.
Most often mentioned among financials: Mastercard or Visa, as well as some of the trust banks like Northern Trust or Bank of New York. Goldman Sachs and Morgan Stanley are also possible choices, but some seem to feel that they may politically unpalatable.

So, you tell us. Who's in? Who else is out?

Citi Speculation Leads To: Who's In The Dow Next? [CNBC]

Source: Dealbreaker | 5 Mar 2009 | 8:56 pm

Barney Frank Wants To See Your Fraud-Perpetrating Ass In The Big House

Chanos not the only one fitting the thieves among us for bespoke orange jump suits.

Source: Dealbreaker | 5 Mar 2009 | 8:52 pm

Goldman executive's share sale capped

Top Goldman Sachs executive Jon Winkelried will be barred from selling most of his shares in the bank when he steps down as one of its presidents at the end of this month because of a provision in the 2008 deal to sell a stake to Warren Buffett
Source: Financial Times - US homepage | 5 Mar 2009 | 8:13 pm

Too Clever By Half

Yes, we are sure that you thought you were very clever when you leased instead of bought that brand new, $115,000 Maserati. We know that you sat back in those leather seats and started with your best Johnny "Sack" Sacramoni impression while trying to catch a glimpse of yourself in the street level window reflections (later it was more like shooting up in a dark parking lot Moltisanti style- but we digress). Well, that wasn't going to last. You weren't that clever. You did manage to fulfill your Johnny Sack fantasy, however. Didn't you?

It won't get investors allegedly defrauded by Arthur Nadel back any of their money, but a federal judge has ordered one of the hedge funds he ran to turn in the keys to its Maserati.
The move to end Viking's lease of a 2008 Maserati GranTurismo came at the request of court-appointed receiver Burton Wiand. Wiand said the $114,640 sports car, which is guaranteed by Viking principal Christopher Moody, won't get Viking investors an extra dime, since the firm has no equity in the car. Nadel managed Viking's hedge funds under a subadvisory arrangement.

Judge: Nadel-Advised Fund Must Return Its Maserati [FinAlternatives]

Source: Dealbreaker | 5 Mar 2009 | 8:07 pm

Shapiro Says `A Lot More Pain to Come' for U.S. Consumers

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 8:05 pm

AT&T Raised to `Buy' at UBS

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 7:57 pm

Northern Trust Is Mad As Hell And They Are Not Going To Take It Anymore

Vegas? Verboten.
Bonuses? Banned.
Falcon? Fatwa'd.
Parties? Prohibited.
Ritz? Regulated.

"Every firm has a breaking point. Yours and mine have. Northern Trust has reached hers. And very obviously, she has gone insane."

U.S. Bancorp and Northern Trust Corp. will return funds from the Treasury's Troubled Asset Relief Program, according to Representative Barney Frank.
The banks didn't immediately confirm whether they'd repaid any of the federal money.

Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said during a news conference that Northern Trust returned $1.6 billion. He didn't say whether U.S. Bancorp, the biggest lender based in Minnesota, had formally applied to return its TARP money.

U.S. Bancorp, Northern Trust Return TARP, Frank Says [Bloomberg]

Source: Dealbreaker | 5 Mar 2009 | 7:30 pm

Big risks for the insurer of last resort

If the UK government believes bail-out must be piled upon bail-out, then banking must be treated as a regulated utility – end of story, writes Martin Wolf
Source: Financial Times - US homepage | 5 Mar 2009 | 7:23 pm

Barclays's Maki Sees U.S. Unemployment Rate at 8%

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 7:21 pm

Housing Story Rattles Economist

Almost one in every eight U.S. homeowners is now late on the mortgage or actively in foreclosure, reports the Mortgage Bankers Association.

Economist and Planet Money guest Amir Sufi noticed the news and sent us an e-mail with the subject line "Scary." He writes:

"[T]his financial and economic crisis begins and ends with the U.S. housing market. The data from the Mortgage Bankers Association suggests we're still in big trouble.

"Let's hope President Obama's housing plan can increase the rate of restructuring to avoid foreclosures."

The Obama administration's $75 billion foreclosure plan offers homeowners and banks cash for refinancing mortgages. Sufi says he's concerned the relatively modest payments won't be enough to keep homeowners paying when their mortgages are more than their houses are worth.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 7:10 pm

Will No One Buy This Smirking Bastard?

Picture 837.png So, not really sure what the Christ this is about, but Bloomberg reports that exactly no one was interested in dropping $100,000 for this Yan Pei-Ming portrait of Bernie Madoff, at the 11th annual Armory Show. We know the art market is not immune to the downturn but $100,000 is not even that much, especially when you consider that a nude rendering of Allen Stanford went for a unit last weekend in Miami. For those of you who absolutely will not budge, DB will be offering prints of this gem tomorrow, matte and high gloss.

Presented By:

Continental Airlines Newest Jet Fleet

		Continental Airlines is proud to fly the newest jet fleet among U.S. based global airlines. Book your flight today.
		continental.com

Ads by Pheedo

Source: Dealbreaker | 5 Mar 2009 | 7:08 pm

Dubai financially dry as expats leave

Dubai's opulence and wealth attracted a lot of foreigners for much of the last decade. But in an economic downturn, many expatriates are leaving the city, which could spell trouble. Stephen Beard reports.
Source: Marketplace | 5 Mar 2009 | 6:26 pm

Sports coaches' salaries under scrutiny

In these tough economic times, salaries for college sports coaches have come under fire. Tess Vigeland speaks with sports journalist Diana Nyad about whether those salaries are inflated or a necessary part of school budgets.
Source: Marketplace | 5 Mar 2009 | 6:26 pm

China's concrete way to boost economy

China's steps to stimulate its economy are different from the U.S. Instead of relying so much on giving consumers money to spend, China's efforts are more... concrete. Scott Tong reports.
Source: Marketplace | 5 Mar 2009 | 5:56 pm

Aetna CEO's advice on health care

At a forum, President Obama discussed reforming the health care system with leaders in the field. Aetna CEO Ronald Williams speaks with Kai Ryssdal about some of the things Obama will have to consider to fix the system.
Source: Marketplace | 5 Mar 2009 | 5:56 pm

A look at a reformed health care system

President Obama wants to stem the skyrocketing cost of health care and fix the system. But what might a new health care system look like? Steve Henn reports.
Source: Marketplace | 5 Mar 2009 | 5:56 pm

Investors worry about GE's outlook

General Electric's stock recently dropped to a nearly two-decade low. Some analysts say investors are worried about GE's financial division. Why? Bob Moon reports.
Source: Marketplace | 5 Mar 2009 | 5:56 pm

GM: Future is in 'substantial doubt'

Auditors are telling General Motors it might not survive unless it files for bankruptcy. What's next for the struggling automaker? Ashley Milne-Tyte reports.
Source: Marketplace | 5 Mar 2009 | 5:56 pm

Citigroup Goes Low

Click to enlarge. Bloomberg.com

Citigroup took the big ride down today, with its shares falling below $1 just before noon Eastern. The lowest so far this Thursday has been 97 cents. A year ago today, Citigroup shares were going for closer to $21.

The trouble with falling below a buck, and staying there, is that the New York Stock Exchange then gets to delist you. On Feb. 26, the NYSE announced it was suspending the rule until June 30 because more than 50 companies had fallen below the $1 mark.

UPDATE, after nudge from: @StreetsofM:
Citigroup's turn at "breaking the buck" is a whole different matter from what happened when money markets did it in September 2008.

That's when fallout from the Lehman Brothers collapse caused the shares of the Reserve Primary Fund to hit 97 cents. On the stock market, investors expect risk -- they buy stock with the hope that it will rise in value, even as they know it might also fall. When people and institutions invest in money markets they generally expect to get back at least the money they put in, and maybe some small amount more. A dollar into a money market fund was supposed to bring at least a dollar back -- and suddenly, that dollar came home as a mere 97 cents.

The main thing money market funds own is commercial paper -- the short-term, giant loans between companies that have long fueled enterprise. When panicked investors began pulling out of money market funds, the commercial paper market froze. That chain of events is what so spooked Treasury and Federal Reserve officials last fall, and led Treasury to insure existing money market deposits.

With Citigroup's shares falling below a buck, the question is more one of general solvency and passing the government's new stress test.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 5:50 pm

The Ford Dilemma

Ford Motor Company has said it doesn't need loans from the government.

But that doesn't mean all is well. The company is offering to pay off some of its bonds. But people who bought those bonds won't be getting back anything like the full face value.

Here's the table detailing the offer. In most cases it amounts to 27 cents on the dollar.

Would you take Ford up on the offer?

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 5:41 pm

Retail Rentals: Busier Than Ever

Melissa Hanson writes:

My Planet Money indicator: 0% chance of losing my job at this moment.I'm busier now that before this whole thing started. I work in marketing at a retail real estate company in midtown Manhattan. Basically, they find tenants to rent retail spaces or find spaces for retail tenants.

As you can imagine, with all the retailers going out of business, spaces are rapidly becoming available. My job is to create materials to market these spaces. It's busier than ever now.

Also, we are doing a lot more work for each project than prior to the crisis. The retailers have become extremely selective and highly discerning of potential sites so we really need to "dazzle" them and provide materials that confirm a good selection. To close a deal (which takes from 1 to 2 years in a good economy) will be taking longer. I don't think we'll really feel the effect in this industry for at least another year or so.

I'm thankful everyday that I still have a job to go to. I'll even be grateful when I have to wake up early and leave late tomorrow just to get it all done.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 4:49 pm

Redeker Says Japan Is 'On Its Way' to Depression

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 4:37 pm

5 Tips for Living Without Credit Cards

zzcredit-cds

Can you imagine living without a credit card? It’s possible, although it does require some restraint. Here are five tips to help you kick-start a life without credit cards:

1. Make a monthly budget. Don’t just make one budget and use it all year. Making a monthly budget allows you to adapt as your financial situation changes. Reserve one day at the end of each month to spend time calculating next month’s budget. This habit minimizes unpleasant surprises and gives you a realistic idea of where your finances stand.

2. Set up automatic payments for your bills. Link payments to your online checking account. By creating a monthly budget, you’ll become intimately aware of what amounts will be coming out. Then, take a check-writing load off by getting payments withdrawn automatically.

3. Use your debit card or cash for everyday expenses like groceries and gas. Some people prefer to use cash for smaller expenses, to stay conscious of the amount of money they’re spending.

4. Use a debit card for travel expenses. You may want to open a separate debit account if you travel frequently and are worried about fraud. Another alternative is to pre-load an ATM card with travel funds. For example, some companies offer an ATM card with their insurance programs. You can load them with wired money, then use that money up travelling.

5. Use checks sparingly. Checks are good for expenses that you need to keep on record, like rent and doctors’ visits.

Bonus tip: If you can, keep a credit card account open for emergencies, but don’t touch it. I heard of one man who kept his credit card in a container of ice in his freezer, just so he wouldn’t be tempted to use it. It’s a little offbeat, but you get the point…

(from No Credit Needed blog: http://www.ncnblog.com/2007/10/19/how-i-live-without-using-credit-cards-my-simple-system-for-living-on-a-budget/)

Source: Business Pundit | 5 Mar 2009 | 4:37 pm

Mayer Sees U.S. Unemployment at 10% or More in 2010

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 4:35 pm

Citigroup shares tumble below $1 (Reuters)

Reuters - Shares of Citigroup , once the world's most valuable bank, tumbled below $1 on Thursday, taking its year-to-date drop to 85 percent.
Source: Yahoo! News: Stock Markets News | 5 Mar 2009 | 4:32 pm

GM Eyes Bankruptcy Anyhow

Just this Tuesday GM was blogging against bankruptcy, writing on its FastLane that " 'clearing the decks' sounds refreshing, the reality would be anything but....The deck in question turns out to be one that millions of ordinary Americans stand on."

Well, well, well. General Motors Corp today says its auditors have raised "substantial doubt" about whether the automaker can avoid bankruptcy. The company needs to stop losing money and stop burning so much cash.

GM has borrowed $13 billion from the federal government and seeks a total of $30 billion.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 4:03 pm

Vitner Sees U.S. Recession Ending Late 2009, Early 2010

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 3:07 pm

Pisasale Calls Exxon Mobil's Long-Term Track Record `Excellent'

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 3:04 pm

ICAP's Tinker Says GE No Longer a Growth Stock

Source: Bloomberg - All Podcasts | 5 Mar 2009 | 2:25 pm

EU Warns of Dangers of Interns

As Bill Clinton found out, female interns can be dangerous. Now the EU central government is issuing an official warning about dangerous femme fatales within its perimeters. From the UK Telegraph:

Paranoid Brussels security officials fear that Eurocrats might be susceptible to the attractive guise of the “pretty trainee with the long legs and the blonde hair”.

Every year hundreds of “stagiares”, or interns, work at the Commission’s Berlaymont HQ in Brussels. Many of them are young, female and some, it has been claimed, are engaged in espionage. Other covers said to be assumed by spies or agents, hired by industry or foreign powers, include people who have day to day contact with European Union officials, such as lobbyists or journalists.

A confidential memorandum sent in December by Stephen Hutchins, the Commission’s director of security, warned that “the threat of espionage is increasing day by day”.

One woman, working in an EU institution on a six month internship, suggested that the idea of glamorous female spies might be more about male fantasy than reality.”I think men working here in boring jobs would love to believe that sexy women spies were after their bodies and their secrets. I personally think it is unlikely,” said Petra, a 24-year old stagiare from a Baltic country.

Now, would you ever hear a CEO warning people about dangerous secretaries? Not so much.

Source: Business Pundit | 5 Mar 2009 | 2:08 pm

Not So Productive After All

The revised numbers for American productivity are in. For the fourth quarter of 2008, the Bureau of Labor Statistics had calculated that nonfarm productivity -- the total output divided by the total hours worked -- grew by 3.2 percent. Instead, folks, it shrank, by .4 percent.

"So much for the surprising strength in productivity late last year; the only bit of good news from Q4 is gone," writes economist Ian Shepherdson. Output and hours worked are in unsettling territory, ground not crossed since the recessions of the 1970s and '80s.

More noise out there about unemployment numbers. February's figure is due out tomorrow. Weekly new claims were down 31,000, to 639,000. It's all just buzzing until we get the figure Friday morning.

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 5 Mar 2009 | 2:07 pm

Disclaimer | About

Blogs : Humor pages | Norkay's Blog | Kids Stories | Indian Recipes | Database Tech Blog

Sundries : World Video Clips | Songs Clips | Indian Video Clips |