Fed to buy $300bn of government debt$

Money Central: The dangers of printing money, four lessons from history
Source: Latest Business News from Times Online | 19 Mar 2009 | 9:31 pm

Fedex results miss Street view

(Reuters) - Fedex Corp reported third quarter earnings on Thursday and said it expects further staff reductions.
Source: Reuters: Business News | 19 Mar 2009 | 12:06 pm

World markets mostly higher after Fed's $1.2T plan (AP)

AP - World stock markets were mostly higher Thursday on guarded optimism the U.S. Federal Reserve's bold $1.2 trillion spending plan would bring a quicker end to the worst global slowdown in decades.

Source: Yahoo! News: Stock Markets News | 19 Mar 2009 | 12:00 pm

Fed says let's Twist again after 48 years

WASHINGTON (Reuters) - The Federal Reserve on Wednesday flashed back almost 50 years to a campaign code-named "Operation Twist", as it announced the purchase of longer-dated Treasury securities to help end a deepening U.S. recession.
Source: Reuters: Business News | 19 Mar 2009 | 11:55 am

AIG bonuses: It's war

The controversy surrounding bonuses at American International Group boiled over Wednesday when the company said it asked some employees to give the money back, but lawmakers said they remained troubled about how the bailed out insurer is being managed.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:50 am

Stocks flirt with higher open

Stocks were set to open higher, but just barely, as investors look ahead to the government's weekly report on unemployment.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:49 am

Wall Street heading for mixed open today (AP)

AP - Wall Street was headed for a mixed opening Thursday ahead of a key reading on unemployment and a day after a rally driven by the Federal Reserve's announcement that it would pump more than $1 trillion into the economy.

Source: Yahoo! News: Stock Markets News | 19 Mar 2009 | 11:48 am

Mortgage lending continues to slide

Mortgage lending continued to tumble in February, falling by 60 per cent compared to the same month last year.
Source: Latest Business News from Times Online | 19 Mar 2009 | 11:46 am

Oil hits $50 on Fed's bond move, weak dollar

LONDON (Reuters) - Oil rose to $50 a barrel for the first time since January on Thursday after a move by the Federal Reserve to buy government bonds hit the dollar and revived expectations the U.S. economy could soon begin its recovery.
Source: Reuters: Business News | 19 Mar 2009 | 11:45 am

Citi Plans Reverse Split & Share Conversions (C)

Source: 247 Wall Street | 19 Mar 2009 | 11:42 am

Indian inflation at historic low

India's rate of inflation drops to its lowest in at least 14 years as the global economic slump hurts demand.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 11:41 am

Winnebago posts 2Q loss as RV sales slide

RV maker Winnebago Industries says it lost more than $10 million in its second quarter as RV sales continued to slide. The Forest City, Iowa, company says it lost $10.4 million, or 36...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:40 am

Guardian loses appeal over Barclays tax gag

The Guardian today lost its appeal against an emergency gagging order that banned the newspaper from publishing documents that allegedly show details of huge tax avoidance schemes at Barclays Bank.
Source: Latest Business News from Times Online | 19 Mar 2009 | 11:40 am

Wall Street heading for mixed open

Wall Street was headed for a mixed opening Thursday ahead of a key reading on unemployment and a day after a rally driven by the Federal Reserve's announcement that it would pump more than...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:39 am

Health tax break: Sacrosanct no more

Get ready. Washington is again debating how to fix the health care system. And the outcome might affect your wallet.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:38 am

French workers mount strike challenge to Sarkozy

French workers staged a second nationwide strike in as many months Thursday in a show of force against President Nicolas Sarkozy's economic policies. Thursday's day of protest,...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:35 am

Top Analyst Downgrades (ARMH, CHU, ERIC, EXPE, GGG, MTB, SNE, TEX)

Source: 247 Wall Street | 19 Mar 2009 | 11:30 am

China Mobile growth slows, warns of tough 2009

HONG KONG (Reuters) - China Mobile missed forecasts with its slowest quarterly profit growth since 2005 and warned a deepening financial crisis will pressure subscriber growth as local competition gets tougher.
Source: Reuters: Business News | 19 Mar 2009 | 11:23 am

Top Analyst Upgrades (AA, WTR, BEC, CWT, CHRT, CHA, GAS, NOK, PNY, WW)

Source: 247 Wall Street | 19 Mar 2009 | 11:23 am

The Fed's shopping spree: $1 trillion

The Federal Reserve announced Wednesday it would buy $300 billion of long-term Treasurys over the next six months in order to try and get credit flowing more freely again.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:23 am

RBS plans to shed 2,700 UK jobs

A senior executive at Royal Bank of Scotland says the bank plans to shed 2,700 jobs in the UK.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 11:22 am

Oil rises above $50 as stock rallies boost hopes

Oil rose above $50 a barrel Thursday in Asia, brushing off news of increasing U.S. crude supplies, as traders took heart from rallies in global stock markets as an indication of overall...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:22 am

Your new tool for tracking stimulus

At first glance, it seems the government's online attempt at tracking where and how stimulus money is being used isn't delivering on its promise of unparalleled transparency.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:22 am

New nationwide strike hits France

More than a million people are expected to join France's second mass strike in two months against the country's economic policies.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 11:21 am

New Explorer browser available

Microsoft Corp. on Thursday launched the latest version of its Internet Explorer browser, heavy on privacy features, as it seeks to reverse market share gains from competitors.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:20 am

Stock futures point to lower start

(Reuters) - Stock futures pointed to a lower open on Wall Street on Thursday following a strong rally overnight after the Federal Reserve surprised investors when it said it would buy long-term Treasury bonds for the first time in four decades.
Source: Reuters: Business News | 19 Mar 2009 | 11:16 am

Stock futures point to lower start (Reuters)

Reuters - Stock futures pointed to a lower open on Wall Street on Thursday following a strong rally overnight after the Federal Reserve surprised investors when it said it would buy long-term Treasury bonds for the first time in four decades.

Source: Yahoo! News: Business | 19 Mar 2009 | 11:16 am

Stock futures point to lower start (Reuters)

Reuters - Stock futures pointed to a lower open on Wall Street on Thursday following a strong rally overnight after the Federal Reserve surprised investors when it said it would buy long-term Treasury bonds for the first time in four decades.

Source: Yahoo! News: Stock Markets News | 19 Mar 2009 | 11:16 am

Oil hits $50 on Fed's bond move, weak dollar

LONDON (Reuters) - Oil rose to $50 a barrel for the first time since January on Thursday after a move by the Federal Reserve to buy government bonds hit the dollar and revived hopes the...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:11 am

Recession hammers UK public finances

The rapidly deteriorating state of the public finances was underlined today as figures showed the budget deficit for last month exploded almost tenfold.
Source: Telegraph Finance | 19 Mar 2009 | 11:09 am

Buick and Jaguar top dependability survey

General Motors' Buick brand tied with Jaguar in J.D. Power and Associates' latest vehicle dependability survey released Thursday.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 11:06 am

JD Power dependability rankings by category

The list includes the top performers and runners-up in each category. An MAV, or multi-activity vehicle, refers to sport utility vehicles and crossovers. ___ Subcompact Car _...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:05 am

Jaguar, Buick dethrone Lexus in reliability study

J.D. Power and Associates says Jaguar has surged to the top of its closely watched vehicle dependability study, tying Buick for the No. 1 spot and dethroning Lexus. J.D. Power says it is
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:01 am

World markets mostly higher after Fed's $1.2T plan

World stock markets were mostly higher Thursday on guarded optimism the U.S. Federal Reserve's $1.2 trillion spending plan would bring a quicker end to the worst global slowdown in decades.
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:01 am

Stock Preacher Issues Technical Trade Alerts on: GS, GIS, JAVA, RIG, XLNX

VALLEY COTTAGE, N.Y., March 19 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:00 am

Wall Street Resources, Inc. Releases an Analytical Profile on Webdigs, Inc.

MINNEAPOLIS, March 19 /PRNewswire-FirstCall/ -- Webdigs, Inc. (OTC Bulletin Board: WBDG) announces today the release of an analytical profile on the Company, by respected...
Source: RSS feed - channel BNewsBusiness | 19 Mar 2009 | 11:00 am

Dollar slides after US Fed plan

The dollar falls against all major currencies after the US Federal Reserve announced $1.2 trillion stimulus plan.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 10:58 am

Indications: U.S. stock futures edge up as market digests Fed move

U.S. stock futures pointed to a slight rise Thursday as markets struggled to push beyond the advance registered after the Federal Reserve’s surprise move to buy government bonds.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 10:54 am

Ease the tuition squeeze

You've been waiting for this moment for nearly 18 years: Your baby is almost ready for college. Your finances, not so much. The market's protracted free fall means that your college fund is now worth just a fraction of what you need. Your home's value has no doubt dropped sharply too - no help there. The only thing that keeps going up, you guessed it, is college tuition. So it's goodbye, Dream School U., hello, Central State, right?
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 10:49 am

Edward Liddy asks AIG executives to repay bonuses

AIG executives who controversially received $165 million in payouts have been asked to repay at least half their bonuses, it emerged last night.$
Source: Latest Business News from Times Online | 19 Mar 2009 | 10:42 am

Oracle profit beats forecasts

Software giant Oracle reported fiscal third quarter profits and sales that beat Wall Street's expectations, and also announced that it would be issuing a dividend to its shareholders. The company also reported "record operating margins."
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 10:39 am

Why you can't find a job in a different field

Friends, here's one thing we've all realized by now: This isn't your ordinary garden-variety recession. During one of those - in fact, as recently as last fall - people laid off by one company could often go right out and get hired by a more prosperous competitor. Now, however, entire industries (banking, autos, construction, retailing, newspapers, the list goes on...) are shrinking fast, putting larger numbers of qualified candidates in competition for fewer openings. At the same time, thousands of people are leaving active military service every month. It all adds up to a huge number of job seekers looking for work in unfamiliar businesses - which, for many veterans, means any civilian enterprise.
Source: Business and financial news - CNNMoney.com | 19 Mar 2009 | 10:35 am

Movers & Shakers: Thursday's biggest gaining and declining stocks

Among the companies whose shares are expected to see active trade in Thursday's session are AIG, Eddie Bauer, Medicis, Microsoft, Nike, Nokia, Oracle, Sony, Teva and 3M.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 10:31 am

Gannett (GCI) Says USA Today Revenue May Drop 35%

Source: 247 Wall Street | 19 Mar 2009 | 10:29 am

Currencies: Dollar remains weak after post-Fed beating

Currency traders are pondering whether the U.S. dollar has lost its luster as a haven currency a day after the Federal Reserve’s surprise decision to effectively print money in a bid to jumpstart the U.S. economy.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 10:29 am

Fed launches bold $1.2T effort to revive economy (AP)

AP - With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy.

Source: Yahoo! News: Business | 19 Mar 2009 | 10:28 am

Eddie Bauer risks violating debt obligations

(Reuters) - Specialty apparel retailer Eddie Bauer Holdings Inc said it faced significant risk of violating its consolidated secured leverage ratio as early as the first half of fiscal 2009.
Source: Reuters: Business News | 19 Mar 2009 | 10:26 am

Courts May Wreck Sony (SNE) And Google’s (GOOG) Challenge To Amazon (AMZN)

Source: 247 Wall Street | 19 Mar 2009 | 10:16 am

Europe Markets: Stocks in Europe up after Fed's bond plans

Stocks in Europe advance on Thursday, in the first opportunity to react to the news the Federal Reserve is following in the Bank of England's footsteps with the direct purchase of $300 billion in long-term Treasury bonds.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 10:12 am

Mortgage lending slides further

The slump in mortgage lending continued in February, with lending down 60% on a year ago, the mortgage lenders' body says.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 10:09 am

Futures Point to Losses After Fed Rally (Market Update)

News at a Glance

• Futures Slip: Stocks look to return some gains.
• Crude Rises: Oil prices return above $50 a barrel.
• Piece of the Pie: Oracle declares first dividend.
• Data Due: Jobless claims, Leading Index due later.

The Lowdown

Mixed earnings and higher energy prices are threatening some of Wednesday's Fed-inspired gains.

Stocks looked to open lower Thursday, as traders grew cautious on the latest corporate results and outlooks and the passing of an old benchmark in oil prices. Shortly after 7 a.m., Dow, Nasdaq and S&P 500 futures were trading below fair value.

In earnings, Oracle offered its shareholders a dividend for the first time. Separately, FedEx (FDX) plans to release quarterly earnings later today. Earnings reports of national shipping companies are often interpretted as proxies for the state of the economy.

In politics, President Obama said Americans were right to be angry about struggling firms like AIG (AIG) doling out hefty bonuses at the expense of taxpayers and accepted responsibility (but not blame) for the problem. Obama will take his economic initiatives and plans for bonus reform on the road tonight, when he is scheduled to appear on "The Tonight Show" with Jay Leno (musical guest: Garth Brooks).

In Washington, House lawmakers are preparing to vote on a bill that would levy a 90% tax on bonuses paid to employees of firms receiving federal bailout funds whose families make more than $250,000 a year. "We figured that the local and state governments would take care of the other 10 percent," Charles Rangel (D-N.Y.), chairman of the House Ways and Means Committee, told the Associated Press.

In energy, crude prices advanced before the opening bell. Shortly before 7 a.m., oil traded up $1.87 at $50.01 a barrel.

World markets were mixed. In Asia, Japan's Nikkei slipped 0.3%, while Hong Kong's Hang Seng inched up 0.1%. In the U.K., the FTSE stood up 0.9% in midday trading.

On Wednesday, a broad investment plan by the Federal Reserve intended to lower mortgage rates and rekindle economic growth left the major indexes higher. The Dow ended the day up 91 points at 7487.

Corporate News

• Oracle (ORCL) declared its first dividend after topping third-quarter Wall Street estimates. The software firm earned $1.33 billion, or 26 cents a share, compared with $1.34 billion, or 26 cents a share, in the year-ago period. Excluding one-time charges, Oracle earned 35 cents a share, beating the Street.
• Nike (NKE) issued what amounted to a profit warning when the sports footwear and clothing firm said its future orders for spring merchandise fell by 10%. Nike sells its mechandise to retailers in advance, so a decline in such sales can speak more to the company's bottom line in the spring than for the current quarter.
• Johnson & Johnson (JNJ) is the subject of a health probe by Shanghai's Food and Drug Administration, which is investigating claims that chemicals used in some of the firm's baby products are carcinogenic, The Wall Street Journal reported. Johnson & Johnson has denied the claim, explaining the chemicals in questions are used only in trace amounts considered safe by the U.S. Food and Drug Administration.

The Economy

• The weekly jobless claims report for last week is scheduled to be released at 8:30 a.m. by the Labor Department. In the prior week, claims came in at 654,000. Economists predict the number people seeking unemployment benefits for the first time will have risen slightly to 655,000.
• The February reading of the Leading Index is scheduled to be released at 10 a.m. by the Conference Board. In January, the index rose 0.4%. For February, economists expect a 0.6% decline.
• The March reading of the Philadephia Federal Reserve's diffusion index of current business activity is scheduled to be released at 10 a.m. In February, the index stood at a reading of -41.3. For March, economists predict a reading of -39.0.

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Source: SmartMoney.com | 19 Mar 2009 | 10:08 am

UK budget deficit widens further

The UK budget deficit hits a record high for February, a further sign of the economic slowdown, official data shows.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 10:06 am

Even Chinese Cellular Markets Face Problems

Source: 247 Wall Street | 19 Mar 2009 | 10:01 am

AIG CEO asks employees to repay some bonus money

WASHINGTON (Reuters) - The head of AIG said he was trying to prevent the company from collapsing when he allowed the payment of $165 million in bonuses that have stoked outrage stretching from the White House to Main Street.
Source: Reuters: Business News | 19 Mar 2009 | 9:58 am

Budget deficit hits record high

Britain's budget deficit hit a record high last month, taking the total borrowing for the fiscal year to date to its highest level since comparable records began in 1993.
Source: Latest Business News from Times Online | 19 Mar 2009 | 9:57 am

Goldman leads $1.2 billion bid for Japan theme park

TOKYO (Reuters) - USJ Co Ltd, the operator of a struggling Universal Studios theme park in Japan, said on Thursday it was being sold for $1.2 billion to a consortium led by Goldman Sachs.
Source: Reuters: Business News | 19 Mar 2009 | 9:56 am

Goldman leads $1.2 billion bid for Japan theme park (Reuters)

Reuters - USJ Co Ltd, the operator of a struggling Universal Studios theme park in Japan, said on Thursday it was being sold for $1.2 billion to a consortium led by Goldman Sachs.
Source: Yahoo! News: Business | 19 Mar 2009 | 9:56 am

China flunks first major antitrust test with Coke

HONG KONG (Reuters) - From a pure antitrust perspective, China's basis for the rejection of Coca-Cola's $2.4 billion bid for Huiyuan Juice failed to stack up to international standards.
Source: Reuters: Business News | 19 Mar 2009 | 9:55 am

China flunks first major antitrust test with Coke (Reuters)

Reuters - From a pure antitrust perspective, China's basis for the rejection of Coca-Cola's $2.4 billion bid for Huiyuan Juice (1886.HK) failed to stack up to international standards.
Source: Yahoo! News: Business | 19 Mar 2009 | 9:53 am

Confidence May Be Too Low For Fed To Help

Source: 247 Wall Street | 19 Mar 2009 | 9:34 am

Iceland interest rates cut to 17%

The central bank of Iceland cuts its interest rate to 17% from 18%, the first cut since it agreed a $10bn deal with the IMF.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 9:23 am

U.K. regulator forces BAA to sell Gatwick and Stansted

The U.K. Competition Commission on Thursday orders airport operator BAA to sell three of its seven British airports, including Gatwick and Stansted in London, but the company says this may be impractical and it will consider an appeal.

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

FTSE still on the backfoot if you're a chartist

Even by the standards of the last 18 months yesterday's evening session was spectacular.
Source: Telegraph Finance | 19 Mar 2009 | 9:18 am

Asia Markets: Asia exporters drop as investors consider Fed move

For Asian exporters struggling to contend with falling demand, the Fed's potentially far-reaching strategy to drive down U.S. lending rates may well sound like music. But they'll still have to contend with the prospect of a further impact on their businesses that any dollar weakness versus local currencies might bring along.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 9:16 am

Exporters drop, financials broadly rise in Asia

Asian shares end mixed after a choppy session Thursday, with financials getting a lift from the U.S. Federal Reserve's plan to buy longer-dated U.S. Treasurys, while exporters are hurt by stronger Asian currencies.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 9:08 am

Citigroup (C) Becomes The Best Bank In The World Overnight

Source: 247 Wall Street | 19 Mar 2009 | 9:07 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 | 19 Mar 2009 | 9:01 am

A Renaissance for Big Acquisitions

Source: 247 Wall Street | 19 Mar 2009 | 8:59 am

Will GE be able to allay investors’ concerns?

Source: 247 Wall Street | 19 Mar 2009 | 8:49 am

London Markets: Greyhound owner FirstGroup gallups in stronger London

FirstGroup stands out in London trade on Thursday, as the bus and rail operator’s stance that its annual profit will meet expectations reassures markets.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 8:39 am

Regulator orders sale of airports

The Competition Commission tells BAA to sell airports at Gatwick and Stansted as well as either Edinburgh or Glasgow.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 8:31 am

Prudential names Tidjane Thiam as new chief executive

Prudential names French national Tidjane Thiam to replace Mark Tucker as chief executive.
Source: Telegraph Finance | 19 Mar 2009 | 8:28 am

London stocks rise in early trade (AFP)

AFP - Stocks in London rose in early trading on Thursday after ending down the day before on news unemployment has topped two million for the first time in over a decade.

Source: Yahoo! News: Stock Markets News | 19 Mar 2009 | 8:26 am

IBM to Buy Sun?

The WSJ reports on the imperiled Sun Microsystems’ talks with IBM:

The disclosure of talks for Sun to sell itself to International Business Machines Corp. caused Sun’s stock to jump nearly 79% Wednesday to $8.89 on the Nasdaq Stock Market.

If the deal does go through, IBM is likely to pay $10 to $11 a share for Sun, according to people familiar with the matter. That would put the purchase price around $8 billion — or about $6.5 billion including the $1.4 billion in cash on Sun’s balance sheet. While negotiations are under way, a transaction might not occur and the talks could fall apart, these people said.

Sun, a major maker of computer server systems, has suffered disproportionately from the recession because of a reliance on high-end systems sold to the hard-hit financial industry. But some customers, former Sun executives and analysts said management mistakes contributed heavily to Sun’s problems.

Certain Sun investors began pressing board members about six months ago to find a suitor because the company had “a huge cost structure that they don’t understand,” said one person familiar with the situation. Talks with tentative buyers “intensified this year,” this person said. Besides flirting with Hewlett-Packard Co., Sun officials also approached Dell. IBM was an attractive buyer because “IBM has better controls [and] better management,” this person said.

Remember when Sun, with its sprawling campuses and ubiquitous servers, was too big to fail? Sun would be a good strategic purchase for IBM, which would benefit from balancing its service and software offerings–which have become a focus in recent years–with Sun’s high-end hardware business.

Another WSJ article describes in detail the pitfalls IBM could face if it chooses to purchase Sun. BusinessWeek also has a nice article on the possible buyout here.

Source: Business Pundit | 19 Mar 2009 | 8:19 am

eBay: The beginners guide

From old shoes to remote controls you'll be amazed what you can sell online with eBay - and how much you can make.
Source: Telegraph Finance | 19 Mar 2009 | 8:09 am

Prudential swings to $562 million loss, raises dividend

U.K. insurance giant Prudential Plc swings to a 396 million pound ($562 million) net loss in 2008 due to the falling value of its investments as it also lifts its dividend and announces the departure of CEO Mark Tucker.

Source: MarketWatch.com - Top Stories | 19 Mar 2009 | 8:09 am

China Mobile warning on slowdown

China Mobile reports a 30% rise in annual profits but says the global economic slowdown will hit the industry this year.
Source: BBC News | Business | World Edition | 19 Mar 2009 | 8:05 am

Buytolet: London rental market 'worst' performer

More real estate brokers said London home rents fell during the period than said they rose according to a RICS survey.
Source: Telegraph Finance | 19 Mar 2009 | 7:55 am

Pru chief Mark Tucker to depart in autumn

Prudential, the life assurer, this morning announced that Mark Tucker, its chief executive for the past four years, will step down in the autumn.
Source: Latest Business News from Times Online | 19 Mar 2009 | 7:48 am

British airports set for radical shakeup as BAA ordered to sell Gatwick and Stansted

Britain's airports are set for new era as BAA is ordered to sell Gatwick and Stansted airports.
Source: Telegraph Finance | 19 Mar 2009 | 7:44 am

FSA's last weapon in the new financial world will be discrection

Lord Turner plans to to end light touch regulation writes Katherine Griffiths.
Source: Telegraph Finance | 19 Mar 2009 | 7:22 am

BAA may challenge order to sell airports

BAA may appeal against the Competition Commission's ruling that it must sell both Gatwick and Stansted airports, as well as either Edinburgh or Glasgow, within the next two years.
Source: Latest Business News from Times Online | 19 Mar 2009 | 7:22 am

Australian stocks: Market closes at one-month high

SYDNEY - The Australian share market closed at a one-month high, boosted by financial stocks after US Federal Reserve-inspired Wall Street rally. The benchmark S&P/ASX200 gained 33.9 points, or 0.98 per cent, to close at 3480.2,...
Source: New Zealand Herald - Business | 19 Mar 2009 | 7:06 am

What the Fed's action means for you

The Federal Reserve on Wednesday stepped up its program to ease the nation's credit crunch, this time targeting long-term interest rates, such as on mortgages and corporate bonds. Here is a look at the Fed's plans, what the central bank hopes to accomplish and what it could mean for home buyers and for homeowners looking to refinance.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

Chinese government denies Coca-Cola's bid to buy juice company

The deal is the biggest of a growing number of failed mergers and acquisitions in Asia. Coca-Cola Co.'s $2.4-billion...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Platinum Equity to acquire San Diego Union-Tribune

La Jolla-based Copley Press is selling its flagship paper for an undisclosed sum. Platinum Equity expects to complete the purchase during the second quarter.

Owners of the flagging San Diego Union-Tribune, one of the largest daily newspapers in California, said Wednesday that the publication would be sold to a private equity firm for an undisclosed sum.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

The belief that the wealthy are worthy is waning

With financial crisis and scandal as backdrop, Americans are questioning whether plutocrats are either indispensable or deserving.

The notion that the poor always will be with us has been ingrained in our culture ever since the sermons of Moses were set down by the anonymous author of Deuteronomy .

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

Treasury officials explicitly allowed AIG bonuses

Executives could get up to 3.5 times their base salary without approval, records of a $40-billion November deal show. It also let the firm set aside as much money for 2008 bonuses as it did in 2006.

In frantically rushing to the rescue of American International Group Inc. last fall, Treasury Department officials negotiated a $40-billion deal that explicitly allowed the company to set aside tens of millions of dollars for executive bonuses and richly reward individual senior executives without restrictions or any concern that the government might interfere.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

NCAA mounts full-court press on trademark violations

Using 'March Madness' in an ad without authorization could prompt a letter from a lawyer. March Madness tips off...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Chinese government denies Coca-Cola's bid to buy juice company

The deal is the biggest of a growing number of failed mergers and acquisitions in Asia.

Coca-Cola Co.'s $2.4-billion bid to buy China Huiyuan Juice Group, rejected Wednesday by the Chinese government, is the biggest of a growing number of failed mergers and acquisitions in Asia.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

Long Beach and Los Angeles port traffic slows in February

The global economic downturn deals the twin-harbor complex another blow in February as container imports and exports drop. But a bottom may be near.

Imports into the Los Angeles and Long Beach ports plunged even deeper into a recessionary hole in February, hitting lows not seen since 1997.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

Federal Reserve moves to bring down interest rates on mortgages, consumer loans

The agency's announcement that it will buy $1 trillion in debt could lower home-loan rates by a full point and stimulate the housing market, economists say.

Escalating the government's already aggressive effort to revive the struggling economy, the Federal Reserve said Wednesday that it would spend an additional $1 trillion to bring down interest rates on home mortgages and other business and consumer loans.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

Platinum Equity to acquire San Diego Union-Tribune

La Jolla-based Copley Press is selling its flagship paper for an undisclosed sum. Platinum Equity expects to complete the purchase during the second quarter. ...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

In AIG flap, it's not just about bonuses anymore

Scrutiny of bailout terms expands as critics question federal officials' longtime ties to aid recipients.

The firestorm over American International Group is spreading beyond executive bonuses, with lawmakers and policy experts now questioning virtually all aspects of the taxpayer-financed rescue package for the insurance giant.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

Stocks gain on Fed plans to buy mortgage bonds, Treasury securities

The S & P 500 and Nasdaq climb 2% after the Fed's plan to pump more than $1 trillion into the economy reverses stocks' pullback. ...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Madoff's accountant is charged with fraud

David Friehling, free on $2.5-million bail, is also accused of filing false reports with the SEC in the $65-billion investment scandal. ...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Northrop advance brings era of the laser gun closer

Unlocking the secret of creating the powerful beams with electricity will lead to smaller, portable weapons, experts say.

Northrop Grumman Corp. engineers in Redondo Beach have developed an electric laser capable of producing a deadly 100-kilowatt ray of light, a major milestone that is expected to help transform what was once a Buck Rogers space fantasy into reality.

Source: L.A. Times - Business | 19 Mar 2009 | 7:00 am

What the Fed's action means for you

The Federal Reserve on Wednesday stepped up its program to ease the nation's credit crunch, this time targeting long-term interest rates, such as on mortgages and corporate bonds. Here is a look at the...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Judge: Merrill Lynch bonus info must be disclosed

A New York state judge today ordered Bank of America Corp. to disclose information about bonuses given to employees at Merrill Lynch & Co. just before the bank bought the brokerage company.
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Treasury officials explicitly allowed AIG bonuses

Executives could get up to 3.5 times their base salary without approval, records of a $40-billion November deal show. It also let the firm set aside as much money for 2008 bonuses as it did in 2006. ...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Northrop advance brings era of the laser gun closer

Unlocking the secret of creating the powerful beams with electricity will lead to smaller, portable weapons, experts say. ...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Long Beach and Los Angeles port traffic slows in February

The global economic downturn deals the twin-harbor complex another blow in February as container imports and exports drop. But a bottom may be near. ...
Source: RSS feed - channel BNPaperBusiness | 19 Mar 2009 | 7:00 am

Citi, Morgan Stanley eye more shares to aid staff pay: report (Reuters)

Reuters - Citigroup Inc and Morgan Stanley will in the next few weeks announce plans to authorize or repurpose shares so they can have enough stock to compensate employees, the Wall Street Journal said, citing people familiar with the matter.
Source: Yahoo! News: Business | 19 Mar 2009 | 6:23 am

Citi, Morgan Stanley eye more shares to aid staff pay: report

(Reuters) - Citigroup Inc and Morgan Stanley will in the next few weeks announce plans to authorize or repurpose shares so they can have enough stock to compensate employees, the Wall Street Journal said, citing people familiar with the matter.
Source: Reuters: Business News | 19 Mar 2009 | 6:23 am

NZ stocks: Market gets boost from US

The New Zealand sharemarket strengthened today after Wall Street took heart from new Federal Reserve moves to resuscitate the ailing United States economy. The Fed said it would buy long-term Treasury bonds for the first time in...
Source: New Zealand Herald - Business | 19 Mar 2009 | 6:23 am

AIG CEO asks employees to repay some bonus money (Reuters)

Reuters - The head of AIG said he was trying to prevent the company from collapsing when he allowed the payment of $165 million in bonuses that have stoked outrage stretching from the White House to Main Street.
Source: Yahoo! News: Business | 19 Mar 2009 | 6:19 am

FTSE slide 1.4pc as energy companies remain in focus

Oil companies such as Afren were in focus as the FTSE 100 fell for a second day in a row tumbling almost 1.4pc.
Source: Telegraph Finance | 19 Mar 2009 | 6:19 am

FTSE 100 slides after 'worst jobs report ever'

London shares slid after the release of what economists dubbed the "the worst jobs report ever".
Source: Telegraph Finance | 19 Mar 2009 | 6:12 am

Lord Turner's key recommendations on banking regulation

Lord Turner on Wednesday unveiled plans to end the era of lightregulation of London's financial services industry to ensure the financial crisis was not repeated. Here are his main recommendations:
Source: Telegraph Finance | 19 Mar 2009 | 5:56 am

AIG chief fails to quell growing ire over bonuses

Edward Liddy says some employees have agreed to return the payouts

Reporting from New York and Washington Walter Hamilton -- The chief executive of bailed-out American International Group Inc. tried Wednesday to defuse public outrage over bonuses paid to key employees whose complex dealings fell apart and helped cause the company's breakdown and fuel the worldwide financial crisis.

Source: L.A. Times - Business | 19 Mar 2009 | 5:54 am

Currency: Kiwi dollar jumps over a cent

The New Zealand dollar jumped over a cent against the greenback after the United States Federal Reserve unveiled more measures to revive the US economy. The kiwi surged to a two-month high around US54.60c after the announcement...
Source: New Zealand Herald - Business | 19 Mar 2009 | 5:22 am

David Kirk appointed to Forsyth Barr board

Former All Blacks captain David Kirk has been appointed an independent director of sharebroking and investment company Forsyth Barr. Kirk, who led New Zealand to their only rugby World Cup title in 1987, was most recently chief...
Source: New Zealand Herald - Business | 19 Mar 2009 | 5:16 am

Eddie Bauer risks violating debt obligations (Reuters)

Reuters - Specialty apparel retailer Eddie Bauer Holdings Inc said it faced significant risk of violating its consolidated secured leverage ratio as early as the first half of fiscal 2009.
Source: Yahoo! News: Business | 19 Mar 2009 | 4:59 am

China blocks Coca-Cola bid for Huiyuan

China formally rejected Coca-Cola's proposed $2.4bn takeover of the country's leading juice maker on competition grounds
Source: Financial Times - US homepage | 19 Mar 2009 | 4:17 am

DirectTV: Subscriber Growth Worth Watching

SIRIUS XM RADIO'S FLIRTATION WITH BANKRUPTCY and Dish Network's shrinking subscriber base are creating static in the satellite-entertainment sector. But the picture is prettier for the nation's largest satellite-TV provider, DirecTV Group. The El Segundo, Calif., company is adding subscribers at a healthy clip and is on track to post solid profit gains this year. And its stock, at 21, could continue to outpace the market over the next 18 months.

DirecTV (DTV) is winning eyeballs during the economic collapse, thanks in part to its NFL Sunday Ticket, which broadcasts out-of-market National Football League games. The close-to-$300-a-season Ticket is must-see programming for consumers such as Heather Polinsky in Alma, Mich., who watches it to track her beloved Pittsburgh Steelers. Declares Polinsky, an assistant professor and audio unit manager at the School of Broadcast & Cinematic Arts: "I won't give it up."

That's music to the ears of DirecTV, which is using its premier sports package and the loyalty of its high-end subscribers to shield it from the worst of the recession. The satellite broadcaster added 301,000 new subs in its fourth quarter, its best showing since 2005, while lowering customer churn to a record-low 1.42%. This year, subs could easily top 18 million, from 17.62 million now, if full-year churn says about flat with 2008's 1.47%.

DirecTV leads the pay-TV industry with more than 130 high-definition channels, and it aims to keep that edge by launching its 12th satellite this year, enhancing its ability to provide high-tech features such as video-on-demand to more than 100 million homes.

The company also replaced rival Dish in a partnership with AT&T ; the two will sell each other's services in bundled packages. This hookup, notes Goldman Sachs, lessens the risk of DirecTV not having a broadband product and increases the chances that it will keep the Ticket after its deal with the NFL ends after the 2010 season.

Overall, solid subscriber growth could drive '09 earnings 7% above 2008's, to $1.6 billion, or $1.63 a share, on revenue of $21 billion. Next year, profits could hit $2 billion, or $2.17 a share, aided by share buybacks. DirecTV made $1.5 billion, or $1.37, on $19.7 billion last year.

After hitting 29 last summer, the company's shares are down 8% this year and sell for 13 times estimated 2009 earnings. The market is valuing each DirecTV subscriber at $1,343, based on estimated enterprise value, about half the figure for cable giant Comcast (CMCSA). Indeed, DirecTV stock was around the same level four years ago when Barron's recommended the stock ("Beam Me Up," April 11, 2005), although the company's market share has risen to 18% from 16% then. As he did four years ago when the shares were at 15, CEO Chase Carey argues that his shares are "woefully undervalued."

Paul Wright, an analyst with Loomis Sayles, owner of more than two million shares, thinks better-than-expected EPS results this year should push DirecTV toward 30 in 12 months. "They are executing tremendously," he says. The same can't be said for rival Dish Network (DISH). At five times earnings estimates, it's cheaper than DirecTV, but its subs tend to be less affluent, and its turnaround is uncertain.

That being said, DirecTV's fourth-quarter results suggest that it, too, faces persistent challenges. The satellite provider pays a lot to capture subscribers -- $724 per individual -- and employs aggressive marketing, such as offering free DVR boxes. Quarterly profit slipped 5% on higher promotional spending, and average monthly revenue per subscriber (ARPU) continued its year-long slide.

While applauding DirecTV for "defying gravity" in the fourth quarter, Goldman Sachs maintained its Neutral rating, fearing growing churn and slower ARPU growth. "The HD content gap has closed," says analyst Ingrid Chung. "Marketing and promotions by competitors have increased." Furthermore, some critics worry that the recession will force even die-hards such as Steelers fan Polinsky to ditch the NFL Ticket.

Carey maintains that DirecTV doesn't depend on the Ticket and suggests he won't overspend for renewal rights. The fewer than two million DirecTV customers who buy the service generate less than $1 billion of annual revenue, estimates Gregory Lundberg of Soleil. DirecTV paid $3.5 billion for the franchise in 2004 and will likely fork over much more to keep exclusive rights. It has the money: The balance sheet is solid, and annual earnings before interest taxes depreciation and amortization (Ebitda) is close to $6 billion.

DirecTV eventually could be acquired by a telco such as AT&T or even Liberty Media (LINTA), which bought a 41% stake from News Corp. (NWS), Barron's parent, early last year and now owns 53.6%. Liberty's John Malone is DirecTV's chairman. Carey, a former News Corp. executive, declines to comment. Either deal might be a sweet endgame for investors. For now, DirecTV's ability to weather the economic storm is burnishing its appeal as one of TV Land's top bets.

The Bottom Line
The company is "defying gravity," as one analyst puts it -- gaining more subscribers and growing earnings. The stock could pop more than 40%, to about $30.

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 | 19 Mar 2009 | 4:00 am

Second Spouses: Passing It On

Because of divorce or death, almost half of all marriages are second marriages—and new mates usually enjoy the same inheritance rights as first spouses. Here’s a brief roundup of the rules that govern where the money goes.

No plan?

Twenty-five percent of adults with liquid assets of more than $500,000 don’t have a will, according to PNC Wealth Management. The ramifications of dying intestate vary. In 16 states the surviving spouse claims the entire estate. In many others the spouse and kids split it 50-50.

Where There’s a Will...

There’s still no way to disinherit a surviving spouse, as many people are surprised to learn. In most states the spouse is entitled to a third or half of the estate as the “elective share.”

The Prenup

This is the only way a spouse can waive an elective share. But courts frown on pacts where it appears one spouse bullied the other. “If the wedding invitations have gone out, it’s too late for a prenup,” says Seattle lawyer George Holzapfel.

The Trust

Trusts control the flow of money to the various heirs. Many parents opt for a “Q-Tip” trust, which pays income to the surviving spouse; the assets in the trust then pass to the children when the spouse dies.
 

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 | 19 Mar 2009 | 4:00 am

Before Your Parents Say 'I Do' Again

Several weeks after his father's death, Chris Leyerle returned home for his 30th high school reunion. He stayed up late into the night, drinking whiskey with his brother in front of the fire and reminiscing about the man they had lost. A retired English professor, the late Dr. John Leyerle spent his final years growing tomatoes and nurturing what Chris says was a multimillion-dollar nest egg, much of it based on an early stake in Microsoft. Dr. Leyerle's second marriage, which came long after the kids were grown, caused a rift in the family. But Chris, a Bellevue, Wash., software engineer, was proud that he was able to remain close to his father and even build a cordial friendship with his stepmom; at the funeral he'd told her he was "enormously grateful" that she was in his father's life.

But none of that made it any easier for Chris to accept the bombshell his brother dropped that weekend: Their father had left the entire estate to their stepmom. That can't be right, Chris thought. He had discussed estate planning at length with his father, and Dr. Leyerle had said he was providing for his children and grandchildren. The will, however, said otherwise. "It's hard for me to fault him, because I loved him," Chris says today. But his father's move still stings, and not just emotionally-Chris had lost much of his own savings to poor investments, and a six-figure bequest would have given him a much needed cushion. As for his relationship with his stepmom, who now holds the family purse strings, Chris says ruefully, "We are not on the same page anymore."

It's rare that an inheritance passes from one generation to the next without leaving some scars. But smooth transitions are becoming even rarer thanks to the growing influence of a new player: the second spouse. As Americans live longer, they're more likely to move into second marriages, and legal experts and financial planners say the resulting friction with the kids is steadily mounting. In more cases grown children are going to court against their parents even while they're still alive, only to run up against a legal framework that leaves them with surprisingly few rights compared with their parents' new spouses. The once-sleepy field of trust and estates law is now brimming with hardened litigators. In Texas, personal-injury lawyers in search of big paydays have begun taking on will contests. And just as court squabbles are on the rise, so are prenups and sophisticated trusts that are designed to forestall them.

Naturally, there are more than bruised feelings at stake. The generation that’s growing old now is arguably the wealthiest in history, and many of their baby boomer kids are counting on inheriting some of their dough. But that legacy is under threat. The stock market’s nosedive and the housing slump have combined to wipe out $15.5 trillion in net worth in the last two years, according to the Federal Reserve. Along with this financial tumble, a growing number of would-be heirs face the biggest threat of all: a new stepmom or stepdad. According to a 2007 study by two Wharton professors, people over 65 are now more likely to be married than ever before, in large part because of a spike in late-in-life marriages. Even as the inheritance pie is shrinking, more family members are fighting for a piece of it.t.

In many cases children now feel that their only option is to fight for their legacies. Kids have the most leverage when Mom and Dad are alive, but some cross the line between encouraging prudent estate planning and outright harassment. "I have to tell the kids to back off," says Seattle trust attorney George Holzapfel. However, he notes that when proper planning is not done, the two sides often end up squaring off in court. When Holzapfel started his firm 35 years ago, it had no litigators that handled this type of issue-but the firm has added four in the past 10 years. And the courtroom battles are rarely pretty. "You can practically see the parent rolling around in the grave," says Brant Keller, a Naples, Fla., financial planner.

Kids Have No Rights

The average American, of course, figures people should have the right to leave their property to whomever they want. In fact, "freedom of testation" was one of the key ways the newly independent colonies departed from English common law, which guaranteed the kids at least a piece of the estate. But the founding fathers kept in place a tradition requiring that the surviving spouse receive some sort of financial support. That concept evolved into what's now known as the elective share, which guarantees the surviving spouse a set percentage of the estate. Most states offer a third of the estate, but some go as high as half. (Georgia is the only state that doesn't stipulate that the surviving spouse get at least some dough.) Furthermore, according to Hofstra University law professor Joanna Grossman, over the past few decades states have been awarding bigger "intestate" shares-the portion of the estate awarded to the surviving spouse when there's no will. Meanwhile, American parents can disinherit their kids entirely if they see fit. "When it comes right down to it, kids have no rights," says Ron Aucutt, a McLean, Va., attorney. The reasoning is that the spouse contributes to the growth of the family's assets, whereas the children only subtract from them by requiring food to eat, clothes to wear and, in some cases, college tuition to squander.

Then again, the founding fathers didn't imagine a time when so many second and third spouses would join families long after the kids were grown up. They also didn't anticipate the in-touch-with-your-emotions ethos of this era. Today children's financial concerns become inextricably wrapped up with issues of familial affection, to the point where the child perceives what the parent does with his or her money as a reflection of loyalty and love. In such a supercharged state of feeling, children are increasingly willing to take their chances in court. Jim Hartnett, a Dallas attorney who specializes in trust and estate litigation, says those kids often have juries' sympathy on their side, if not the law. "Most people believe in the natural order, that the money should stay in the family," he says.

That's certainly how Neill Finkel assumed things would go. Neill's octogenarian father, Melvin, a retired advertising guru, had shored up his sons' future by placing a big chunk of his multimillion-dollar estate into a family trust. But the Finkels' harmony turned dissonant after Melvin hooked up with Amy, a travel companion almost 30 years his junior. The two married in 2004, and soon after, Melvin was diagnosed with prostate cancer and began showing signs of dementia. Citing Melvin's health problems, Amy began asking for additional money from the family trust, including $800,000 for a new house. Melvin sided with Amy over the spending, but as Melvin became increasingly frail, Neill and his brother came to believe that Amy was abusing her influence over him to get more money. "All of a sudden," Neill says, "everything that was supposedly untouchable was touchable."

Enter the lawyers. In 2007 the Finkel brothers filed a suit seeking guardianship of their dad, and Amy countered with a request to have the sons removed as trustees. The animosity prompted charges and countercharges straight out of film noir. In depositions, the brothers accused Amy of trying to aggravate Melvin's diabetes by leaving pies and other sweets around the house; Amy in turn accused the sons of hiring a private detective to kidnap Melvin. (Both sides deny the respective accusations.) This January, after running up hundreds of thousands of dollars in legal fees, the two sides finally settled the case. Amy received an additional $20,000 per month from the trust, funds she says are necessary to cover Melvin's nursing care and other increased expenses. The sons, meanwhile, remain in charge of the trust. Through her attorney, Amy says she would like to heal the rifts between her and the stepsons. Neill says that's unlikely, if not impossible. He can "tolerate her presence" so his kids can see their grandfather, but he fears the money feud will erupt again. "All she wants is more and more and more," he says.

Why Marry At All?

Couples who meet late in life can make their financial lives simpler, in theory, by simply shacking up. In 2006 more than 1.8 million Americans above age 50 lived in heterosexual "unmarried partner" households, a 50 percent jump from six years earlier. Staying single makes it easier for a couple to keep their assets separate, although it's not foolproof-in many states, rules of common-law marriage can entitle a surviving shacker-upper to a portion of a deceased person's estate. When Judi Montoya of Seattle began a serious new relationship at age 57, she and her beau worried about how they might divide decades' worth of personal wealth down the road. "I'm sure he didn't want his assets to go to my daughter, and I didn't want my assets to go to his children," Montoya says. So they lived in what used to be known as sin. Only after five years did they make their commitment formal-but not before agreeing to a prenuptial agreement. Montoya sees the prenup as a practical precaution. In their case, she insists, it's not "an exit strategy."

Once viewed suspiciously by most courts, prenups are now generally enforced, and they're practically standard for older couples entering a second marriage. Such couples tend to be more financially experienced and "not as hormonal," explains Jim Hennenhoefer, former president of the American Academy of Matrimonial Lawyers. Another reason for the prenup boom: The kids demand them. But this rise of the activist child troubles many lawyers. Hennenhoefer says he has sent letters to clients' grown children warning that if they continue to hassle their parents about prenuptial agreements or changes to the will, he will report them for elder abuse.

Even if it doesn't reach that level, the kids' insistence can make life awkward for the parents. Estelle Holzer of Chicago was 71 when she remarried. An insurance executive on the brink of retirement, she brought healthy savings to the union, including the proceeds from the suburban home she sold in order to move in with her new husband, attorney Jack Shore. Her daughter, Bambi Holzer, went to Estelle months before the wedding and advised her to draw up a prenuptial agreement. "I wanted to make sure his kids wouldn't kick her out if he passed away first," Bambi says. In the meantime, Shore was hearing similar sentiments-but considerably louder-from his three kids. They were worried about his downtown condo, which boasts Oprah as a neighbor, being passed to the newest member of the family. "It wasn't like they said, 'Stop the marriage!'" Estelle says. "But they weren't that enthused." In the end, the Holzers and Shores cobbled together a prenup that allows Estelle to remain in the condo if Jack should die first; the condo then passes to Jack's kids at her death. Jack also took out life insurance policies that ensured the kids would receive some cash when he died. The process was uncomfortable, but the Holzers say everyone was ultimately satisfied. "It brings out a lot of emotions, but she needed to protect herself," Bambi says.

Holler "We Want Prenup"

A prenuptial agreement is essentially a blank slate that allows a couple to apportion their assets however they choose. But many estate planners prefer a more targeted strategy called a Q-Tip trust. The Q-Tip, short for qualified terminable interest property trust, is built for blended families. The parent's assets go into a trust designated for his or her heirs, but the income earned by the trust is paid to the surviving spouse throughout the spouse's lifetime. When the spouse passes on, the remaining assets are distributed to the children as previously designated. "It sets up boundaries, so the kids aren't worried that stepmom is going to take the money and run," Holzapfel says.

But Q-Tips cost a few thousand bucks to set up and administer. And they have their critics. Margorie Engel, a psychologist and former president of the Stepfamily Association of America, calls Q-Tips "the work of the devil." Her reasoning: The trust often puts the surviving spouse and the grown children in conflict. Often the spouse wants the trust to generate as much income as possible, while the children want it to grow-resulting in fights over how the assets are invested. And some trusts allow the survivor to make withdrawals from the principal for purchases, leading to squabbles over whether a Cadillac or an expensive handbag is truly necessary. Then there's the fact that the children resent the stepparent for surviving in the first place. "Can you imagine children waiting around for their stepparents to die? It's pretty morbid," says planner Keller. These conflicts are most pronounced in May-December romances, when the grown children are close to the same age as the new spouse.

Most lawyers and financial planners agree that the families that get cross-ways are those that don't communicate. Adam Gaslowitz, an Atlanta attorney who represented Neill Finkel, says there is a saying in the field: "People get over the loss of a loved one sooner than the loss of an inheritance." And when that disappointment is compounded by surprise, the wound cuts deeper. For Chris Leyerle, that is the issue that haunts him. He still recalls his father saying he wanted to take care of his grandkids in his will, but when his father died, the only will found was from 1993, long before the family had those conversations. "In retrospect, I should have pushed the issue more and said, 'What have you actually done, Dad?'" he says. To do so might have seemed crass, but Leyerle now understands it's not that simple: "You do it in part out of love."

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 | 19 Mar 2009 | 4:00 am

Big jump in NZ renewable energy generation

New geothermal plants, more windfarms and normal hydro lake levels have seen a big jump in renewable electricity generation, Energy Minister Gerry Brownlee said today. Brownlee released statistics up to the end of last year which...
Source: New Zealand Herald - Business | 19 Mar 2009 | 3:30 am

Fannie Mae chiefs in line for huge bonuses

Fannie Mae will pay its top executives retention bonuses of up to $611,000, the state-controlled mortgage lender and guarantor revealed yesterday amid the furore over compensation at AIG.$
Source: Latest Business News from Times Online | 19 Mar 2009 | 3:10 am

Kiwis optimistic about riding out recession - survey

New Zealanders are optimistic about riding out the recession but less confident about their personal finances. The latest M&C Saatchi's international survey of consumer attitudes towards economic downturn, shows only 27 per cent...
Source: New Zealand Herald - Business | 19 Mar 2009 | 3:00 am

Postie Plus sales down 5pc, but margins improving

Retailer Postie Plus Group's half year sales fell 5 per cent from a year earlier, but the company said margins improved and the decline eased in the second quarter. For the six months to the end of January the company had operating...
Source: New Zealand Herald - Business | 19 Mar 2009 | 2:30 am

AIG chief says some have started paying back bonuses

WASHINGTON - Under intense grilling from lawmakers, the head of American International Group said some executives have voluntarily begun returning all or part of bonuses that have outraged American taxpayers who spent billions bailing...
Source: New Zealand Herald - Business | 19 Mar 2009 | 2:00 am

Waikato ratepayers stump up $12m for Hamilton Airport debts

Hamilton International Airport's local authority shareholders are providing $12 million to reduce its debt. They also continue to hunt for an airline to operate international flights out of Hamilton as Air New Zealand ends its...
Source: New Zealand Herald - Business | 19 Mar 2009 | 2:00 am

US Fed to inject a trillion dollars into economy

WASHINGTON - The Federal Reserve has announced that it will inject about $US1 trillion into America's economy in a bold effort to help the battered housing market and lift the US out of recession. At the same time, the Fed left...
Source: New Zealand Herald - Business | 19 Mar 2009 | 1:30 am

Actor Natasha Richardson dies at 45

Award-winning actor Natasha Richardson, a member of Britain's Redgrave acting dynasty, died at age 45 after a suffering a severe injury in a skiing accident in Canada earlier this week.
Source: Financial Times - US homepage | 19 Mar 2009 | 1:30 am

Fannie plans bonuses of $1M for 4 execs (AP)

AP - Fannie Mae plans to pay retention bonuses of at least $1 million to four key executives as part of a plan to keep hundreds of employees from leaving the government-controlled company.
Source: Yahoo! News: Business | 19 Mar 2009 | 12:33 am

After The Close - Wednesday

CINTAS (CTAS), a rental uniform provider, said its Q3 EPS fell 11.3% to 47 cents, a penny below views. Sales fell 7% to $909 mil, below views....

Source: Investor's Business Daily: BUSINESS | 19 Mar 2009 | 12:27 am

Business Briefs - Wednesday

Intuit reports TurboTax gains. The finance software maker said use of its TurboTax federal tax preparation software is up about 10% so far this...

Source: Investor's Business Daily: BUSINESS | 19 Mar 2009 | 12:27 am

Infrastructure Company Keeps The Lights On And The Trains Running

When President Obama was sworn in on a cold January morning, a small Houston company helped deliver hundreds of thousands of Americans to the event.

Source: Investor's Business Daily: BUSINESS | 19 Mar 2009 | 12:27 am

Trends & Innovations - Wednesday

Texting trash cans hit the streets

Source: Investor's Business Daily: BUSINESS | 19 Mar 2009 | 12:27 am

In Brief - Wednesday

Fannie Mae (FNM), the gov't-backed mortgage giant, plans to pay retention bonuses of up to $611,000 to key execs this year to keep them from...

Source: Investor's Business Daily: BUSINESS | 19 Mar 2009 | 12:27 am

AIG chief urges staff to return bonuses

Edward Liddy, chief executive of AIG, on Wednesday tried to soothe anger against the bailed-out insurance group by urging employees to give back the $165m in bonuses that have sparked a political firestorm
Source: Financial Times - US homepage | 19 Mar 2009 | 12:09 am

Write-Offs: 03.18.09

$$$ Dissecting the A.I.G. Bonus Contract [Dealbook]

$$$ The Layoff Game [The Deal]

$$$ Apparently there's going to be a protest at GS tomorrow. [TBTE]

$$$ Piedrahita's checkered past [GofaG]

$$$ Level the Field, a non-profit that seeks to develop partnerships between collegiate athletic programs and middle schools in order to create a mentoring program for adolescent students in low-income communities, will be hosting an open bar fundraiser at 1Oak on April 16. Purchase tickets here today and help touch the lives of approximately 80 sixth graders in the fall and many more in the future.

Source: Dealbreaker | 19 Mar 2009 | 12:08 am

FSA crusader's real test comes next

You have to hand it to Adair Turner. The FSA chairman knows how to produce a good report. His review of financial regulation is a model. It is intelligent, comprehensive, rigorous and measured. It talks tough enough to please the SW1 crowd, but is not too scary for EC2.
Source: Latest Business News from Times Online | 19 Mar 2009 | 12:00 am

Need to know: Starbucks 'will succeed' ... JJB jobs cuts ... Ericsson deal

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 19 Mar 2009 | 12:00 am

Federal Reserve plan stuns investors

The Federal Reserve stunned investors by announcing plans to buy $300bn of US government debt, triggering a plunge in bond yields and the dollar
Source: Financial Times - US homepage | 18 Mar 2009 | 11:40 pm

Concern as companies hoard cash

Investment-grade companies appear to hoard cash while raising record amounts of debt on bond markets
Source: Financial Times - US homepage | 18 Mar 2009 | 11:30 pm

Hear: Pointing Fingers

On today's Planet Money:

-- AIG CEO Edward Liddy testified on Capitol Hill today. Congress wants Liddy to hold back $165 million in promised bonuses, but Liddy says he can't. With the American taxpayers holding a nearly 80 percent stake in the company, some are asking -- can't we just force him to do it? Chana Joffe-Walt gets a shareholder's perspective.

-- The anger towards AIG has been dominating the headlines this week, but not everyone is seeing red. Ian Bremmer of Eurasia Group says the government has much bigger fish to fry and that AIG outrage is a luxury we can't afford.

-- We've asked for your input on where to place the blame for the economic crisis. Jacob Ganz checks in on the debate over who deserves more -- Wall Street or Washington.

Bonus: An indicator from New Mexico, after the jump.

Download the podcast; or subscribe. Intro music: Kelly Clarkson's "My Life Would Suck Without You." Find us: Twitter/ Facebook/ Flickr

Lenny sends this picture from a recent road trip from Denver to Tucson. He writes:

I passed dozens of sets of train cars just left on the tracks. There was no engine nor anything in the cars. I have never seen so many train cars sitting idle on the tracks with nothing to transport.

» E-Mail This     » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 18 Mar 2009 | 11:30 pm

Madoff's accountant charged with fraud

Bernard Madoff's long-time accountant was arrested and charged with securities fraud and other crimes as US prosecutors widened their investigation into one of the biggest investment frauds in history
Source: Financial Times - US homepage | 18 Mar 2009 | 11:13 pm

Presented By:

Source: Dealbreaker | 18 Mar 2009 | 11:08 pm

Dodd Takes Responsiblity For AIG Bonus Loophole

Embedded video from CNN Video
Apparently the Treasury made him do it.

Source: Dealbreaker | 18 Mar 2009 | 11:08 pm

AIG chief asks for bonuses back

The boss of US insurer AIG calls the bonuses paid to executives "distasteful" and asks for some to be repaid.
Source: BBC News | Business | World Edition | 18 Mar 2009 | 10:52 pm

Let The Bonus Stalking Begin

New York has decided to out the Merrill Bonus traitors. Release the hounds!

New York Attorney State Supreme Court Justice Bernard Fried in Manhattan today rejected an argument by Charlotte, North Carolina-based Bank of America Corp. that compensation information was a trade secret. He also said employees can have no reasonable expectation of privacy in the information when they are free to share it.

"The Martin Act vests in the Attorney General the discretion to decide whether to keep the information that he gathers in the course of his investigation secret or public," Fried wrote in a 16-page decision, referring to a New York securities law. Bank of America, he said, has no "privacy interest that undermines that statutory discretion."

Judge Says Cuomo May Name Merrill Bonus Recipients [Bloomberg]

Related: Full text of the ruling via WSJ.

Source: Dealbreaker | 18 Mar 2009 | 10:34 pm

Why Covering AIG Is So Hard

I've reported some tough stories, but this one is really, really hard to get right. Not emotionally. I'm as mad as everyone at these stupid bonuses, but I've been more upset about worse things that I've seen.

It's hard because I think the best perspective is a bit subtle, a bit nuanced, and I don't think there is much acceptance of that now.

I was in Iraq in May and June of 2003. To us reporters on the ground, it was clear the occupation was a full-on disaster, but word hadn't leaked out to the U.S. yet. When I came home on vacation, my friends -- even my lefty, anti-war friends -- were convinced that the occupation was going well. (Nobody believes me these days, but I swear it's true. You probably thought things were going well then.)

It was frustrating to report on problems and have the audience tell me that I was wrong. It was frustrating, but I knew they'd find out the truth eventually.

The Dubai Ports World story was very difficult to cover. For all sorts of reasons (which I can get into later) it felt clear to me (and many others) that Congress was creating a crisis where none existed, that they were using populist rhetoric to political ends and were mostly making the world a slightly worse place by showing the rest of the world's investors that the U.S. doesn't always welcome them.

That was frustrating, but I felt like I could report it well and get the ideas across. The truth was fairly clear.

Iraq, back then, could fall under the heading: "Things You Should Be Outraged About But Aren't (Yet)." The Dubai Ports World story's headline could be: "Something You Are Outraged About But Shouldn't Be." But this one, oy, the AIG bonus story: that falls under the heading: "Something You Should Be Outraged About And Are, But, Maybe, You Should Focus On Other Things Instead."

Here's my view:

- It is awful that those guys got those bonuses. "Retention" bonuses for people who were going to leave? People who destroyed the company and the world? Ridiculous.

- This is a $165 Million problem during a multi-Trillion dollar crisis. As Ian Bremmer put it, Outrage is a Luxury We Can't Afford. The economy is still horribly, scarily precarious. No matter what you think should be done--stimulus, bailout, neither, nationalization, more regulation, less regulation -- it needs to be done soon. We are still in an ugly crisis and if it's badly handled, it can damage the economy so violently that we'll all be poorer, the vulnerable won't get food and health care. The stakes are HUGE. And Congress and the President and Geithner should not waste three weeks on this sideshow.

- That being said, this is yet more evidence to the tone-deafness of the whole government response. Whatever you support or oppose, it is safe to say that our leadership has not done a good job explaining what they are doing and why. Back in September, the government decided that to save the world economy they need to give a lot of money to a lot of undeserving rich people and rich companies. It's clearly not fair, and they did it fast and sloppily. It might have been the right thing to do, maybe it wasn't (we'll learn eventually, I guess). But it was the decision they made and the Obama administration continued and they haven't been straight with us, so we keep getting stunned by these discoveries.

- The outrage over the bonuses is so understandable. I have it. Finally, in this unbelievably confusing crisis we have something crystal clear: this is immoral, unfair, outrageous. It is much harder to dig in to the tough stuff, to understand the crisis more deeply, and to focus on bigger, more frustrating issues.

So, my modest proposal of things to be outraged about instead (or, at least, in addition) to the bonuses:

- The pathetic lack of global unity in the response (I'm looking at you: Europe).

- The fact that Congress still doesn't understand the issues well enough to create a coherent response.

- The fact that nobody understands Treasury's real plan and the vagueness of it makes us all suspicious that either there is no plan or they are hiding something from us.

- The stunning lack of reflection from the leadership of banks, ratings agencies, regulators, Congress, the Administration, media, etc, for their culpability.

- The lack of bold, forward-thinking responses. The Administration(s), Congress, and much of the rest of the world seem to constantly be fighting the last fight and catching up on the fly. That is not how it has to be. They can get in front of this--take bold, painful action, and clearly tell us why.

I've felt more afraid today than I have in months. I was assuming that the government would, eventually, solve things. They'd try a lot of bad ideas, they'd be late and imperfect and inefficient. But they'd solve things. Today -- it's just a feeling -- but I started thinking that maybe they won't solve things. Maybe they'll be so politicized and so populist that the economy will collapse.

I hope not. It probably won't happen. But if it does, I'll bet you that it'll happen because we all took our eyes off the ball and focused on the wrong things.

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 10:25 pm

Let's Get Drunk And Accuse Goldman Of Being A Ponzi Scheme

Mail-call: "Linda Thomsen having a going away party at the SEC right now."

Source: Dealbreaker | 18 Mar 2009 | 10:17 pm

The AIG Bonus Scandal "Is A Stone In America's Shoe, And Making It Hard To Walk Our Journey"

[Earlier]
4:51PM: Rep. David. Scott: "We've got to get that stone out of our shoe." Oh, yes, we're back.

Scott: "Mr. Liddy, we are in effect at war....Our economy is *almost* in the tank."

One more Congressman should ask Liddy what he was thinking when he drafted those contracts.* Go on, do it. It no longer makes us want to kill someone, 'cause we've turned it into a drinking game.

*Which he, you know, since he's been forced to say it 838 times today, didn't.

5:01PM: Rest assured: AIG = dumb, not criminal (according to Lids, there's no cooking of books at AIG, just "too big an appetite for risk...it's not like an Enron or a WorldCom").

5:04PM: Rep. Maloney: Why didn't you disclose your counterparties? What were you hiding? Why? Why did you do it?

Liddy: Because the Federal Reserve has a policy of not disclosing that information, and wouldn't let us.

Maloney, eye lit up, practically kvelling: REAL-LY? Was there anything else you wanted to disclose but were prohibited from doing so?

Liddy (nervous, sees where she's going with this*): Uhmmm...not that I know of (don't hurt me, crazy lady).

*The place where she strings Bernanke up by his balls.

5:35PM: Rep. Donnelly: In terms of credit default swaps, how much have they cost AIG?

Liddy: 50 billion...ish?

[CSPAN flashes the definition of a credit default swap, probably for the benefit of Congress]

6:00PM: Some Rep whose name I missed is interested to hear how 20 to 25 people were able to bring AIG "to the brink and threaten the entire financial system." Liddy tells him he ought to bring in those people (Cassano, for starters), and ask them. No argument there.

Source: Dealbreaker | 18 Mar 2009 | 9:50 pm

The Most Surprising Thing About This Story Is That Congress Did Not Make The Same Mistake

Pity the middle-aged fool who happens to have a somewhat round, slightly doughy looking face though no other discernable physical similarities to AIG CEO Edward Liddy.

[Zippy] Duvall, president of the Georgia Farm Bureau, was minding his own business this morning as he walked down a corridor of the Rayburn House Office Building outside the hearing room where a committee was probing the AIG bonuses. Suddenly, he was surrounded by lights, television cameras and microphones.

"Are you ready for this hearing?" somebody shouted.

"Do you think they're going to treat you fairly?"

Duvall stopped to chat amiably with the mob of reporters. "If I knew I was going to get all this attention, I'd have gotten my hair cut," said the farm bureau president, who is almost completely bald.

As the questions continued to fly, one of Duvall's farm-bureau colleagues shared a thought with his suddenly-popular boss: "I think they think you're somebody else."

It was of course, a case of mistaken identity. Duvall, as it happens, bears not even a passing resemblance to AIG Chairman Edward Liddy. If the lack of Liddy's white hair didn't give it away, surely the peanut-print tie and the farm-bureau lapel pin should have. "We're here to represent farmers," Duvall explained as the questioners began to disperse.

Source: Dealbreaker | 18 Mar 2009 | 9:08 pm

The Obama Portfolio

Ben Is A Long's Best Friend. The First Long managed to pull safely into double-digit territory on the strength of the Fed rally. Whoo hooo!

The Obama Portfolio (Since Inception): +12.90%

Earlier: The Obama Portfolio

Source: Dealbreaker | 18 Mar 2009 | 9:01 pm

Geithner's Gonna Make You Rich

Obama told you earlier to get off Geithner's ass and shut it with the naysaying because the hardest working man in America isn't going anywhere. So he's probably not down with this, but who died and made him Queen of Sheba, right? Which is to say: go bet on T. Geith's job security now. On a related note, not that we don't have full confidence in the li'l fella, but just to be prepared, in the event Geither finds himself unemployed, who should fill his elfin shoes? Charlie Gasparino's old short list? The Philly Phanatic? YOU? Weigh in now.

Source: Dealbreaker | 18 Mar 2009 | 8:46 pm

Madoff Accountant Flies Free!

David Friehling skated after coughing up a $2.5 million bail. No word yet if the check bounced.

Bernard Madoff's longtime accountant has been released on $2.5 million in bail.

The 49-year-old David Friehling was arrested on fraud charges Wednesday and accused of helping the disgraced money manager cheat thousands of investors out of billions of dollars.

The accountant was released after a brief hearing Wednesday in federal court in Manhattan.

Madoff's accountant released on $2.5m bail [The Associated Press]

Source: Dealbreaker | 18 Mar 2009 | 8:30 pm

Reinhart Sees Fed Running Out of Monetary Policy Options

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 8:11 pm

IBM in $6.5bn move for Sun

Takeover talks between IBM and Sun could lead to wider technology consolidation as the recession bites
Source: Financial Times - US homepage | 18 Mar 2009 | 8:11 pm

Bolton Surprised Obama Administration Not Aware of AIG Bonuses

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 8:08 pm

Oil falls on U.S. stock build, China growth concern (Reuters)

Reuters - Oil fell $1 a barrel on Wednesday after data showed U.S. crude inventories swelled to the highest level in nearly two years and the World Bank cut its 2009 forecast for China's economic growth.

Source: Yahoo! News: Stock Markets News | 18 Mar 2009 | 7:39 pm

Blame Canada?

The Toronto Star is getting in on the blame game. Listener Shreve L. from Toronto points us to an article titled "Meet the Canadian whose big idea felled Wall Street." In it, the Star calls Former University of Waterloo statistician David X. Li the man who "supplied the matches" that burned down the American economy -- a reference to Felix Salmon's piece in Wired. Shreve writes:

For the most part the readers who have commented on the article seem to see past the sensational headline, and find the articles nationality based attempt at blame distasteful. But perhaps its true that Canadians are at least a little proud to be included as part of the global catastrophe. Don't forget about us.

More typical of the coverage in the great white north is an often repeated pride that our Canada is different, and our cautious Canadian ways have now been proven correct. Here the subtle Canadian pride is most pronounced in 5 of Canada's major banks breaking into the top 10 of north American banking as US banks shrink. (Although, the recent announcement that Bank of Montreal was on AIGs bail out list makes you wonder how different they are..

I must say that the sitting government does like to insist that Canada is not apart of this financial crisis, and continues to say (as it has for a year) that Canada is different and won't see the worst of this. We'll be fine, no crisis here, move along folks nothing to see. (Though this posturing is now starting to show some serious cracks .)

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 6:43 pm

Norway's krone: the new safe haven currency?

The Swiss franc has tumbled and questions surround the haven status of the dollar and the yen. The Norwegian krone could prove a refuge for investors, writes Peter Garnham
Source: Financial Times - US homepage | 18 Mar 2009 | 6:31 pm

Lanman Says TALF Will Benefit `Wide Range' of People

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 6:16 pm

Marta Says U.S. Consumers Will Continue to Save, Not Spend

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 6:13 pm

Pioneer Investment's Carey Likes Healthcare Industry Stocks

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 6:08 pm

Dixon Says Fed to Continue Downbeat Assessment of U.S. Economy

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 6:05 pm

Donaldson Discusses SEC, Schapiro, Obama's Economic Policies

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 5:48 pm

World Bank cuts China growth forecast

The downgrade widens the gap between the generally pessimistic forecasts emerging from international economists and estimates published within China
Source: Financial Times - US homepage | 18 Mar 2009 | 5:46 pm

A Parody of 10 More Corporate Logos

Remember our corporate logo parody post from last December? It depicted 15 corporate logos altered to reflect current economic conditions. We couldn’t resist creating 10 more corporate logos as a follow-up. We thought the following might suit the companies–after the crisis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Business Pundit | 18 Mar 2009 | 5:41 pm

Liddy Speaks Out

In an op-ed in today's Washington Post, AIG CEO Edward Liddy says he shares the public's anger towards his company and other financial firms. Here's a taste:

I am mindful of the outrage of the American public and of the president's call for a more restrained compensation system. I am also mindful that every decision we make at AIG has consequences for the American taxpayer. We weigh decisions with one priority in mind: Will this action help or hurt our ability to pay money back to the government?

Although we have wound down more than $1 trillion in the portfolio of the AIG Financial Products unit that is at the root of the company's troubles, there remains substantial risk in that portfolio. The financial downside for taxpayers is potentially very large, and that's why we're winding down this business.

To prevent undue risk exposure in the meantime, AIG has made a set of retention payments to employees based on a compensation system that prior management put in place. As has been reported, payments were made to employees in the Financial Products unit. Make no mistake, had I been chief executive at the time, I would never have approved the retention contracts that were put in place more than a year ago. It was distasteful to have to make these payments. But we concluded that the risks to the company, and therefore the financial system and the economy, were unacceptably high.

Liddy is testifying on Captiol Hill today before a House Financial Services Subcommittee. Read his prepared remarks here.

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 5:30 pm

GE offers a peek into its finance unit

To quell speculation and build investor confidence, General Electric is holding a meeting in New York to offer a peek into its finance unit. Ashley Milne-Tyte reports.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

AIG uproar rattles private investors

The Federal Reserve is counting on private companies to use federal dollars to jump-start the credit markets. But are investors balking now because of the AIG commotion? Jeremy Hobson reports.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

Africans wary of biofuel developers

Investment in biofuels could bring much-needed development to African countries. But locals are still skeptical they'll see any of the benefits. Gretchen Wilson reports.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

Singer turns to fans to fund new album

Tired of dealing with record labels, singer-songwriter Jill Sobule asked her fans to donate money to pay for her latest recording. She talks with Kai Ryssdal about what she's learned from the effort.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

Securitzation industry a sinking ship?

Chances are the loan you got for your car or house in recent years ended up being bought by investors in a process called securitization. Some blame that process for or current economic mess and say it shouldn't be allowed to continue. Bob Moon reports.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

Obama's protectionism hurts U.S. trade

In retaliation for a ban on Mexican trucks using American highways, Mexico is set to impose tariffs on several U.S. imports. Commentator David Frum says it's the latest sign of the Obama administration's protectionist bias.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

Broken Coke deal sign of protectionism

Regulators in China have denied Coca-Cola's plan to buy a Chinese juice company. Dan Grech reports the broken deal may signal rising protectionism in China and worldwide.
Source: Marketplace | 18 Mar 2009 | 5:12 pm

What we're missing beyond AIG

The $165 million in bonuses going to AIG employees has caused an uproar across the nation. But what are we missing while being distracted by those bonuses? Steve Henn reports.
Source: Marketplace | 18 Mar 2009 | 5:11 pm

The End of Stacey's

Steve Rhodes sends these photos from the last days of Stacey's Bookstore in San Francisco. The store closed yesterday after 85 years in business and 50 years in the same location. The San Francisco Chronicle reported on the closure earlier this month:

Stacey's was always crowded at lunch hour. It was a place to sit, to ask the clerks for advice, or just to look at books. "You know, people don't think of the Financial District as a neighborhood, but it is," said Ingrid Nystrom, the marketing manager at Stacey's, who has run 50 to 100 author events a year there over the past 11 years. "It will be a real loss to the neighborhood. We've had some people crying."

Stacey's had a lot of books on financial topics, and the numbers for the store were grim, Nystrom said. "We sold $4.5 million worth of books last year," she said. "But the place (three stories and a basement) is too big for the number of people."

At the same time, the economy got weaker and Internet competition got stronger. "Our biggest competitor is online booksellers," she said.

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 4:29 pm

Eli Lilly Raised to `Buy' at Citigroup

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 4:00 pm

Fitzpatrick Says OPEC's Goal is $70 a Barrel Oil

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 3:42 pm

'Deflation Still Coming'

In his morning note, Ian Shepherdson of High Frequency Economics keys in on the increase in the consumer price index (CPI). He writes:

The February CPI rose 0.4%, with the core up 0.2%; both increases were a tenth bigger than expected. The headline was boosted by an 8.3% rebound in gasoline prices, a bit less than we expected. Food prices dipped marginally.

In the core, the big surprise was a 0.8% rise in new car and truck prices, the biggest increase since November 04. We can say with confidence that this is not the start of a new upward trend in this incredibly depressed sector. The same is true of clothing prices, up 1.3%. This is a partial reversal of the massive fall discounts, nothing more; the pressure on clothing prices is downwards.

Elsewhere, rents and OER were both very subdued, rising only 0.1%, and lodging costs dropped 1.8%. Headline CPI deflation is still coming, and core disinflation will continue.

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 3:28 pm

The Credit Crunch Bride

Forget about an increase in divorce when the economy sours, in Japan marriage is on the rise. Bloomberg reports:

Women the Japanese call "marriage-hunters" are looking to tie the knot as companies from Toyota Motor Corp. to Sony Corp. fire thousands of workers and the nation heads for its biggest annual economic contraction since 1945. Marriages surged to a five-year high of 731,000 in 2008 as wages stagnated and the unemployment rate rose for the first time in six years.

"Financial concerns are a major reason for the increase in marriage-hunting," said Toshihiro Nagahama, chief economist at Dai-Ichi Life Research Institute in Tokyo. "Women are motivated more than ever to find a financially sound partner."

The current economic crisis has sent Japan's unemployment rate up the charts. In January, it was at 4.1 percent. And things are expected to get much worse. According to Bloomberg, economists at Dai-Ichi Life Research and JPMorgan Chase & Co. expect the jobless rate this year "to surpass the postwar peak of 5.5 percent in 2003."

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 3:15 pm

Proposal: REALLY big AIG checks

My colleague Joe Palca has the following proposal:

Here's what you do. Announce that the money will be handed out at a public function. Then, print the checks on those oversize posters like they do for the Publisher's Clearinghouse Sweepstakes, so you can see the name of the lucky winner and the amount they received from 100 yards away. Anyone who wants the money has to come up on stage and have his or her picture taken with an irate Timothy Geithner.

I'm guessing many would decide it wasn't worth it. And for those who do, well, at least they'll have provided us with a little entertainment.

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 3:13 pm

Listener Indicator: Pints In Paris

Ariane writes from Paris:

I graduated college last May in the States and I am currently taking "find myself" year in Paris. I support myself by working at an expatriate bar called "the Great Canadian" (I'm from New York). It is a popular sports bar amongst French and English speakers. It is right on the Seine and in view of Notre Dame. With a location like that drinks are on the pricey side. In the last months thanks to a terrible exchange rate with the pound we've lost a lot of our customers and paying 7 euros while watching a rugby match sounds a bit ridiculous. So now the pints are 5 euros. Still expensive, but still.

Tastes a little like deflation.

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Source: NPR Blogs: Planet Money | 18 Mar 2009 | 2:55 pm

BGC's Buik Sees `Air of Urgency' on Crisis Across the World

Source: Bloomberg - All Podcasts | 18 Mar 2009 | 2:22 pm

BoJ ramps up purchase of government bonds

The Bank of Japan is to increase its purchases of Japanese government bonds by nearly a third, the latest in a series of increasingly assertive measures by the central bank to respond to the pressures created by the global financial crisis and a fierce domestic recession
Source: Financial Times - US homepage | 18 Mar 2009 | 12:52 pm

Companies Market to Women in Tough Times

The Economist describes how some recession-stricken companues are looking to female consumers as a new source of income:

In America, where female consumers make more than 80% of discretionary purchases, companies have started tailoring their products and messages to appeal to women, in an effort to boost their sales.

Frito-Lay, a snack-food company owned by PepsiCo, has launched a campaign called “Only In A Woman’s World” to convince women that crisps and popcorn are not just for male, beer-guzzling sport fans. OfficeMax, America’s second-largest office-supplies company, has redesigned its notebooks and file-holders to appeal to women and has run advertisements that encourage women to make their cubicles more colourful. For the first time, McDonald’s was a sponsor of New York Fashion Week in February, promoting a new line of hot drinks to trendsetting women.

Eric Almquist, head of global consumer insights for Bain & Company, a consultancy, says he is surprised it has taken a recession to get companies to focus on women. After all, it is hardly news that they control the vast majority of consumer spending. (They buy 90% of food, 55% of consumer electronics, and most of the new cars.) But the recession has prompted companies to rethink their approach.

Aside from their greater purchasing clout, women are valuable customers for three reasons. First, they are loyal, says Marti Barletta, author of “Marketing to Women”, and more likely to continue to buy a brand if they like it. Second, women are more likely than men to spread information about products they like through word of mouth and social-networking sites. Third, most of the lay-offs so far in America have been in male-dominated fields, like manufacturing and construction. This means women may bring home a greater share of household income in the months ahead and have even more buying power.

That’s a smart move by companies. In essence, feminizing products (will OfficeMax be creating leopard print file holders?) is expanding the concept of fashion or trendsetting to products that haven’t been subject to it in the past. Cute products that fit a woman’s sense of style and expression will always be in demand, even if it’s something as small as a stapler.

Feminizing mundane products also divides a unisex market (like computer monitors) into two distinct niches. If she buys a lavender computer monitor, he won’t want to use it, at least not in public. So he is more apt to buy his own computer monitor. If it worked for razors, it could work for anything. The trick is to price the product attractively enough that women will reach for it.

I look forward to seeing what feminine potato chips look like.

Source: Business Pundit | 18 Mar 2009 | 11:26 am