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Presented By:Source: Dealbreaker | 9 Apr 2009 | 1:10 pm Opening Bell: 04.09.09Morgan Stanley To Post Loss (WSJ) That is somewhat higher than the $500 million to $1 billion mark that many analysts are predicting Morgan would take from the bond-price move." Jean-Claude Trichet Interview, Post G20 (ECB) Interactive Recruitment Map (FT) Wells Fargo May Keep Evergreen (Reuters) "Wells Fargo said the asset management unit Evergreen Investments which it inherited when it bought Wachovia Corp was not for sale, even as it scales back Wachovia's investment banking operation, the NY Post reported citing sources. In a report posted on its website, the paper said Wells Fargo had informed potential buyers of Evergreen that it would not sell the money-management firm. The bank is likely to keep Wachovia's investment banking unit, although in a smaller form, even though market observers had predicted that Wells Fargo would sell the business, the Post reported." U.S. Imagines Bailout As Investment Tool (NYT) "This is an opportunity to forge an alliance between Main Street, Wall Street and K Street," said Steven A. Baffico, an executive at BlackRock, referring to the Washington address of many lobbying firms. BlackRock, a giant money management firm, is playing a central role in the government's efforts and is considering creating a bailout fund. "It's giving the guy on Main Street an equal seat at the table next to the big guys," he said." Buffett Gets Handed Downgrade From Moody's (NYT) "Moody's Investors Service on Wednesday stripped away the triple-A rating of Berkshire Hathaway, the conglomerate and investment vehicle run by Mr. Buffett, citing the economic pressures on the firm. The news is yet another sign that, despite all of Mr. Buffett's investing prowess and business savvy, even the man that investors regard as the Oracle of Omaha cannot avoid the tremors coursing through the markets." Regulators Don't Want TARP Money Back Anytime Soon (Reuters) "But banking experts said regulators will likely be wary of letting big banks, at least, repay TARP any time soon. "They have to be very careful about sending any accidental signals," said Seamus McMahon, an independent bank and regulatory consultant. "There is not much downside from (the regulators') perspective to taking their time." Mindful of their role in keeping the financial system healthy, regulators would not want to allow banks to return money only to find later the repayment was premature and they needed new capital." US Destroyer VS. Pirates! (FT) 
Source: Dealbreaker | 9 Apr 2009 | 1:10 pm Stock futures jump on Wells Fargo profit surprise (AP)
Source: Yahoo! News: Stock Markets News | 9 Apr 2009 | 12:31 pm Bank keeps interest rates at 0.5%The Bank of England keeps interest rates on hold after cuts in recent months, and continues to pump cash into the economy.Source: BBC News | Business | World Edition | 9 Apr 2009 | 12:27 pm Stock futures add to gains on Wells Fargo view (Reuters)
Source: Yahoo! News: Stock Markets News | 9 Apr 2009 | 12:26 pm March sales offer mixed signalsMarch sales results offer mixed signals on whether retailers may have endured the recession’s worst.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 12:22 pm Wal-Mart sales fall short of estimates (Reuters)Reuters - Wal-Mart Stores Inc on Thursday reported March same-store sales.Source: Yahoo! News: Business | 9 Apr 2009 | 12:20 pm Direxion Financial & Financials Win On Wells Fargo (WFC, BAC, JPM, C, FAS)Wells Fargo & Co. (NYSE: WFC) is going to be taking the bank stocks significantly higher, particularly the Direxion Financial Bull 3X Shares (NYSE: FAS). The company is releasing earnings on April 22, but it now has issued guidance that will please even the naysayers on Wall Street. Shares are fluying pre-market and are taking [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 12:19 pm Indications: U.S. futures extend gains after Wells Fargo reportU.S. stock futures rose Thursday ahead of a three-day weekend, as an early release of profits from Wells Fargo added to the optimism around the financial sector.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 12:15 pm Easter Kills Wal-Mart (WMT), Stock DivesWal-Mart’s (WMT) same-store sales were light, by a lot. For the four weeks of March, revenue was actually down 2% to $36.2 billion. International sales killed results by dropping 15% to $8.1 billion. But, US same-store sales were well below most projections. up only 1.4%. With Sam’s Club factored out, sales at the flagship brand stores moved [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 12:13 pm Mini-projectors: Tiny qualityI'm CEO of Playfish, one of the largest creators of video games for social networks like Facebook. Though our studios are spread around the world, we develop games collaboratively and often review them together, running our software over the company intranet and displaying it on computer monitors or through projectors.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 12:12 pm Wells Fargo expects $3 billion in earnings (Reuters)Reuters - Wells Fargo & Co on Thursday said it expected approximately $3 billion in first quarter earnings.Source: Yahoo! News: Business | 9 Apr 2009 | 12:11 pm Wells Fargo expects $3 billion in earnings(Reuters) - Wells Fargo & Co on Thursday said it expected approximately $3 billion in first quarter earnings.Source: Reuters: Business News | 9 Apr 2009 | 12:11 pm Bank of England holds rates at 0.5%The Bank of England agreed to hold interest rates steady for the first time since last September and maintained its commitment to buy up to £150bn in government gilts and corporate bondsSource: Financial Times - US homepage | 9 Apr 2009 | 12:07 pm John Lewis suffers 6.7% slump in salesJohn Lewis, the department store chain, suffered a 6.7 per cent fall in sales last week, the eleventh successive week of year-on-year declines for the bellwether of the British high street.Source: Latest Business News from Times Online | 9 Apr 2009 | 12:06 pm Interest rate decision: what next for mortgage rates?Borrowers on their lender's standard variable rate can expect to enjoy low rates for the remainder of the year.Source: Telegraph Finance | 9 Apr 2009 | 12:06 pm Buffett's Berkshire loses top ratingRead full story for latest details.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 12:03 pm Bank of England leaves interest rates on hold for first time since SeptemberThe Bank of England is now switching its focus to injecting billions of pounds of new money into the economy.Source: Telegraph Finance | 9 Apr 2009 | 12:01 pm Man Utd parent makes annual lossManchester United's debt repayments lead to a £44m loss for its parent company, Red Football Joint Venture.Source: BBC News | Business | World Edition | 9 Apr 2009 | 11:59 am Early reports: March sales fall, but less sharply (AP)AP - Retailers say sales fell in March as shoppers continue to shop cautiously and spend mainly on necessities such as food.Source: Yahoo! News: Business | 9 Apr 2009 | 11:56 am Dialing D.C.: Send more cash for copsCamden, Delaware is a budding bedroom community, not a magnet for capital crime.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 11:55 am How Apple can beat RIMSource: Business and financial news - CNNMoney.com | 9 Apr 2009 | 11:51 am Japan's largest retailer Seven & I's net income falls 29%Retail group Seven & I Holdings Ltd., operator of Japan’s 7-Eleven convenience store chain and the nation’s largest retailer, reports Thursday net income fell 29% in the recently-ended fiscal year.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 11:51 am Costco March same-store sales down(Reuters) - Costco Wholesale Corp said March sales at stores open at least a year fell 5 percent on weakness in non-food categories and lower gasoline prices.Source: Reuters: Business News | 9 Apr 2009 | 11:50 am Moody's strips Berkshire Hathaway of top ratingNEW YORK (Reuters) - Moody's Investors Service cut its credit ratings on Berkshire Hathaway Inc from Aaa, the top rating, saying the recession and investment losses at insurance operations of investor Warren Buffett's holding company reduced its ability to support funding needs.Source: Reuters: Business News | 9 Apr 2009 | 11:48 am US ship in stand-off with Somali piratesA stand-off between a US navy destroyer and pirates holding a US-flagged ship's captain hostage is continuing, amid signs other pirate-held ships were being moved towards the areaSource: Financial Times - US homepage | 9 Apr 2009 | 11:47 am Stock futures point to higher open after banks reportNEW YORK (Reuters) - Stock index futures pointed to a higher open on Thursday after the New York Times reported the U.S. banking industry seems to be in better shape than many people think, citing officials involved in the federal " stress tests."Source: Reuters: Business News | 9 Apr 2009 | 11:45 am Stock futures point to higher open after banks report (Reuters)
Source: Yahoo! News: Business | 9 Apr 2009 | 11:45 am Early reports: March sales fall, but less sharplyRetailers say sales fell in March as shoppers continue to shop cautiously and spend mainly on necessities such as food. But similar to February, the declines are more moderate than in...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:45 am Asia Crude-BPCL seeks sweet and sour crude - sourceNEW DELHI, April 9 (Reuters) - India's second-largest state-run refiner, Bharat Petroleum Corp (BPCL) , has issued a tender to buy May-June loading sweet and sour crude, a trade source said on Thursday...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:40 am Euro holds firm, pound slips before UK rate callThe euro held firm Thursday but the pound dipped against the dollar in thin pre-holiday trade ahead of a British interest rate decision and amid fears of a worsening recession in Europe.Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:37 am Japan outlines $150bn stimulusJapan has unveiled its record $150bn (£105bn) stimulus package as it seeks to revive its economy.Source: BBC News | Business | World Edition | 9 Apr 2009 | 11:36 am London Markets: London shares steady ahead of break; Barclays shares upBritish shares waver around the flat line on Thursday ahead of a long holiday weekend, with losses from Vodafone Group and other more defensive-type firms offsetting gains from banks and mineral extractors.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 11:36 am Ireland slumps further into deflationIreland's shrinking economy slumped further into deflation in March with prices falling 2.6 percent on a 12-month basis after a drop of 1.7 percent in February, official data showed...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:31 am Warm Weather Entertaining Just Got Easier With Smirnoff(R)WORLD'S BEST-SELLING VODKA INTRODUCES NEW FLAVORED VODKAS AND PREMIUM COCKTAIL: MELON FLAVORED VODKA, POMEGRANATE FLAVORED VODKA AND TUSCAN LEMONADE NORWALK,...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:30 am Bankrate: Mortgage Rates Bump HigherNEW YORK, April 9 /PRNewswire/ -- Mortgage rates were slightly higher this week, with the average 30-year fixed mortgage rate increasing to 5.2 percent. According to...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:30 am Matrix Service Announces Results of Third Quarter of Fiscal 2009 Ended February 28, 2009Matrix Service Provides Update of Fiscal 2009 Earnings Guidance Third-Quarter Fiscal 2009 Highlights: - Revenues were $146.3 million; - Gross margins...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:30 am Bank of England holds rates at record-low levelsThe Bank of England’s Monetary Policy Committee on Thursday left the central bank’s key lending rate unchanged at 0.5%, an all-time low.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 11:26 am Good as gold: Signs of a new gold rush in the USThere are tentative signs of a new gold rush in the US, according to the Gold Prospectors of America Association.Source: BBC News | Business | World Edition | 9 Apr 2009 | 11:25 am BoE holds rates at 0.5 percentLONDON (Reuters) - The Bank of England left interest rates unchanged at a record low of 0.5 percent on Thursday, and said it would take another two months to complete its 75 billion pound quantitative easing program.Source: Reuters: Business News | 9 Apr 2009 | 11:24 am BoE holds rates at 0.5 percentLONDON (Reuters) - The Bank of England left interest rates unchanged at a record low of 0.5 percent on Thursday, and said it would take another two months to complete its 75 billion pound...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:24 am Early Bird Analyst Calls (BBBY, BBT, FHN, LCAPA, OIIM, RF, STI, UHS)These are some of the early bird analyst upgrades and downgrades we have seen on Wall Street this Thursday morning ahead of the long weekend: Bed Bath & Beyond (NASDAQ: BBBY) Cut to Neutral at SunTrust Robinson Humphrey. BB&T (NYSE: BBT) Cut to Underperform at KBW. First Horizon National (NYSE: FHN) Cut to Underperform at KBW. Liberty Media Capital [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 11:19 am Japan unveils $154 billion stimulusRead full story for latest details.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 11:09 am If printing money sparks inflation are indexlinked gilts the solution?The Bank of England's attempts to stave off deflation lead many to fear a return to its opposite inflation. Should investors seek sanctuary in "linkers"?Source: Telegraph Finance | 9 Apr 2009 | 11:09 am Stock futures up moderately ahead of reportsWall Street is poised for a moderately higher opening Thursday as major retailers will report monthly March sales and ahead of the government's weekly unemployment report. Investors willSource: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:07 am Bank of England holds interest rates steadyThe Bank of England has kept official interest rates on hold at 0.5 percent. Thursday's decision was widely expected by economists. It is the first time the central bank has held steady...Source: RSS feed - channel BNewsBusiness | 9 Apr 2009 | 11:05 am Morgan Stanley earnings to be hurt by bonds: report(Reuters) - Morgan Stanley's bottom line will be hurt by the recent rebound in its bond prices, the Wall Street Journal said.Source: Reuters: Business News | 9 Apr 2009 | 11:04 am Bank of England keeps interest rates at 0.5pcThe Bank of England is now switching its focus to injecting billions of pounds of new money into the economy.Source: Telegraph Finance | 9 Apr 2009 | 11:02 am UK interest rate held at historic low of 0.5%What is quantitative easing?Source: Latest Business News from Times Online | 9 Apr 2009 | 11:00 am Rosy start seen for stocksU.S. stocks were set for a positive open Thursday, as investors awaited March sales from the nation's retailers, although trading could be volatile in the last session of a holiday-shortened week.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 10:59 am GM's Hummer: 3 bidders remainRead full story for latest details.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 10:57 am ING to shed €8 billion of assetsING Group today announced plans to sell up to €8 billion (£7.2 billion) of non-core assets and cut its geographical spread in a bid to bolster its capital structure and focus on a smaller number of core markets.Source: Latest Business News from Times Online | 9 Apr 2009 | 10:49 am Fiat CEO again in U.S. for Chrysler talks: sourceTURIN (Reuters) - Fiat Chief Executive Sergio Marchionne is again in the United States for talks with potential partner Chrysler , a source close to the company said on Thursday.Source: Reuters: Business News | 9 Apr 2009 | 10:35 am UK factory price rises slow downThe price of goods leaving UK factories rose in March at its slowest rate for more than 18 months, official data shows.Source: BBC News | Business | World Edition | 9 Apr 2009 | 10:34 am Pound boosts exports as trade gap narrowsBritish exports leapt by much more than expected in February as the weaker pound made UK goods more attractive to overseas buyers.Source: Latest Business News from Times Online | 9 Apr 2009 | 10:33 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 10:31 am European investors await Bank of England (AP)
Source: Yahoo! News: Stock Markets News | 9 Apr 2009 | 10:29 am Japan unveils $154bn stimulus planThe Japanese government should spend a bigger-than-expected 15.4 trillion yen ($154 billion) on economic stimulus, the ruling party said, causing bond yields to sink but boosting stocks in sectors seen benefiting from the higher spendingSource: Financial Times - US homepage | 9 Apr 2009 | 10:27 am TARP Revisit: Were Life Insurers On the Brink? (MET, PRU, HIG, LNC, GNW, AIG)There is one question that keeps making the rounds after the news of yesterday’s TARP bailout money inclusion being offered to life insurers. Are these really close to falling into the abyss, all over again? You will see the large gains racked up yesterday, but there is a lot more to this than may meet [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 10:08 am 'Bank of England may be split on holding interest rates'While the "MPCometer" predicts that Bank Rate will be held at 0.5pc one archdove may vote for a cut.Source: Telegraph Finance | 9 Apr 2009 | 10:08 am Advice for 10 million late filersIf you're among the 10 million people expected to miss the April 15 tax deadline, don't fret, there's still time to file for a six-month extension.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 10:00 am ING to shed up to $10.6 billion of assetsAMSTERDAM (Reuters) - Dutch ING plans to sell operations worth up to 8 billion euros ($10.6 billion) to reduce risk, focus its bank on Europe, and manage its banking and insurance separately, boosting its shares on Thursday.Source: Reuters: Business News | 9 Apr 2009 | 9:59 am No Auto Industry Recession In China (GM)(TM)(HMC)If only US car companies could do all of their business in China. The economy there must be better than has been reported. In March, a record 1.1 million light vehicles left showrooms. That means that more cars were sold in China during the month than were sold in the US. According to the AP, “China [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 9:56 am World stocks win back ground before Easter break (AFP)
Source: Yahoo! News: Stock Markets News | 9 Apr 2009 | 9:46 am Acer Heats Up PC WarsAcer has decided that the way to get share from competitors and increase sales in a recession is to go down market and sell PCs at prices that will draw in even financially taxed consumers. The move by the Taiwan-based company makes sense, but it forces the industry into a price war at the lowest end of [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 9:43 am Currencies: Equity rebound leaves dollar slightly lowerThe U.S. dollar was slightly lower versus most major rivals other than the Japanese yen Thursday as equity markets posted a modest rebound, undercutting haven-related flows into the greenback.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 9:41 am ING to shed up to $10.6 billion of assets (Reuters)Reuters - Dutch ING plans to sell operations worth up to 8 billion euros ($10.6 billion) to reduce risk, focus its bank on Europe, and manage its banking and insurance separately, boosting its shares on Thursday.Source: Yahoo! News: Business | 9 Apr 2009 | 9:39 am Miami housing: The power of cheapIvette Castillo thought buying a home at a time like this was out of the question. But when a friend told her there were great deals to be had in Miami, Castillo decided to test the waters.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 9:39 am Nikkei jumps 3.7% as Asian markets rallyAsian markets rebound strongly Thursday, with overnight gains on Wall Street and unexpectedly-positive economic data from Japan boosting investor sentiment.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 9:35 am T-Mobile move threatens 500 jobsHundreds of jobs in the UK could be lost as mobile phone giant T-Mobile moves work to the Philippines.Source: BBC News | Business | World Edition | 9 Apr 2009 | 9:32 am Morgan Stanley (MS): Why Investors Don’t Understand Financial StocksThe Wall Street Journal reports that Morgan Stanley (MS) lost money in the first quarter. The reason appears to be a perverse accounting rule, not unlike those that have plagued bank financial reporting for several quarters. According to the paper, “Because of the accounting treatment on some bonds issued by Morgan Stanley before the financial crisis erupted, the New [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 9:29 am Japan's $154 billion stimulus earns mixed gradesJapan’s newest supplemental stimulus package, reported to total 15 trillion yen ($154 billion), is receiving mixed reviews from analysts, many of whom say it bears shades of the bridges-to-nowhere packages of the 1990s that left the nation saddled with debt.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 9:22 am Swiss hold '$150m Nigeria bribes'Bribes given to Nigerian officials by a US company have been traced to Swiss banks, the Nigerian government says.Source: BBC News | Business | World Edition | 9 Apr 2009 | 9:19 am Japan launches 'do or die' rescue fund packageTaro Aso, Japan’s Prime Minister, is poised to announce a Y15.4 trillion stimulus package that will include cash incentives for women to produce children, subsidies for new fridges and infrastructure spending to help cope with outbreaks of “guerrilla rain”.Source: Latest Business News from Times Online | 9 Apr 2009 | 9:10 am Jump in Australian unemploymentAustralia's unemployment rate jumped to 5.7% in March from 5.2% the previous month, the biggest monthly rise in 18 years.Source: BBC News | Business | World Edition | 9 Apr 2009 | 9:07 am Nintendo Strikes BackNintendo executives are almost certainly upset that the Sony (SNE) PlayStation outsold the company’s Wii gaming system in Japan last month. The Wii has held a large margin in unit sales for several quarters. Nintendo does not intend to take the news lying down. It will launch the latest version of the “Wii Sports” in June. According [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 9:05 am UK rates expected to stay unchangedThe Bank of England is expected to keep rates on hold at 0.5% as cuts in recent months have left little scope for further reductions.Source: BBC News | Business | World Edition | 9 Apr 2009 | 8:59 am Having A Wake At The Car ShowThe press is upset that the car companies will not put on their usual splendid displays at the New York International Auto Show. There will not be a big collection of V8 thunder cruisers, women in bikinis to demonstrate the latest models, and wild concept cars which are inordinately attractive but will never be built. Instead, [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 8:53 am The Lost Decade May Only Last Three MonthsDepending on the source, Japan’s mythic “Lost Decade” lasted from 1989 to 2003, or sometime later if the exact bottom of the real estate market in the Asian nation is taken into account. Because the period began with easy access to capital followed by a sharp drop in the stock market and property values, it [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 9 Apr 2009 | 8:44 am German government in Hypo offerThe German government launches a takeover offer for troubled lender Hypo Real Estate but some investors are not keen to sell.Source: BBC News | Business | World Edition | 9 Apr 2009 | 8:39 am Twitter partners with dotcom darlings in new ventureA host of London dotcom celebrities including Lastminute.com founders Martha Lane Fox and Brent Hoberman have created a company to exploit the phenomenal growth of Twitter.Source: Telegraph Finance | 9 Apr 2009 | 8:38 am ING to unload $10.6 billion in assetsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 9 Apr 2009 | 8:37 am Don't worry, insurers are a safe bunchShould the U.S. Treasury Dept. extend financial aid to a handful of eligible life-insurance companies, as it appears will happen, consider it insurance for the insurers, industry experts say.Source: MarketWatch.com - Top Stories | 9 Apr 2009 | 8:36 am UK anti-terror chief resigns after leakBob Quick, Britain's most senior counter-terrorism officer has resigned after he inadvertently leaked details of an imminent anti-terror operation shortly before police swooped on 12 suspectsSource: Financial Times - US homepage | 9 Apr 2009 | 8:11 am Moody's strips Warren Buffett's Berkshire Hathaway of AAA ratingWarren Buffett's investment conglomerate stripped of its prized tripleA credit rating after Moody's downgraded its investment outlook.Source: Telegraph Finance | 9 Apr 2009 | 7:41 am Sharp, Pioneer say to merge optical disc businessesTOKYO (Reuters) - Japan's Sharp Corp and Pioneer Corp said they would set up a joint venture to merge their optical disc businesses, aiming to beef up one of their focus operations and take a leading position in the growing Blu-ray disc market.Source: Reuters: Business News | 9 Apr 2009 | 7:32 am Hays hurt by collapse in the UK job marketResults from Britain's biggest recruiment company underlines the dire state of the jobs market this year.Source: Telegraph Finance | 9 Apr 2009 | 7:22 am ING plans to raise 8bn euros selling businessesING the largest financialservices company in the Netherlands has unveiled plans to raise up to 8bn euros £7.2bn selling busineses after receiving a Government lifeline last year.Source: Telegraph Finance | 9 Apr 2009 | 7:07 am Troubled NBC calls on exec Angela Bromstad to revive prime timeThe network passed over Bromstad two years ago. Now it's counting on her to find hits, starting tonight.Angela Bromstad is NBC's survivor. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Builder Pulte Homes to buy CentexPulte Homes is buying Centex for $1.3 billion to create the nation's largest builder. It could spur other deals. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Builder Pulte Homes to buy CentexPulte Homes is buying Centex for $1.3 billion to create the nation's largest builder. It could spur other deals.Giant home builder Pulte Homes Inc. agreed Wednesday to buy rival Centex Corp. for $1.3 billion in a move that could spur more mergers in an industry decimated by the housing slump and the reeling overall economy. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Judge upholds insider trading claims against Countrywide ex-CEO MoziloThe U.S. District Court jurist rejects such shareholder allegations against other executives of the nation's largest mortgage lender. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Short sellers unjustly Wall Street's whipping boyInvestors who bet a stock's price will fall are also the ones who sounded early alarms about Enron, WorldCom, AIG and failing investment banks, albeit generally to a willfully deaf investment world.As doomsayers from Nostradamus to Cassandra have learned to their great distress, nobody likes a spoilsport. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Health plan merger speculation worries doctors and hospitalsRumors of deals including a possible takeover of Humana by Aetna raise concerns over prices and a limiting of patient choice.Talk of potential mergers in the medical insurance industry has doctors and hospitals worried about health plans having too much clout over consumer choices and prices. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Stocks end two-day slump with a modest gainThe Dow rides surging insurance and technology shares to a 47.55-point increase in volatile trading. Insurance...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Madoff-type schemes are proliferating on YouTubeThe Better Business Bureau has identified nearly 23,000 videos, many promoting seemingly legal 'cash gifting' programs, that lead the viewer to put up money and to recruit others to do the same. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Treasury Department makes life insurers eligible for federal bailoutsSuch old-line firms as Hartford and Prudential have been battered by the credit crisis, and industry analysts have 'valid concerns' about their health. How much money they will need is unclear. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Short sellers unjustly Wall Street's whipping boyInvestors who bet a stock's price will fall are also the ones who sounded early alarms about Enron, WorldCom, AIG and failing investment banks, albeit generally to a willfully deaf investment world. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am L.A. starts buying up foreclosed homes with federal aidLos Angeles is using its $33-million share of Neighborhood Stabilization Program money to refurbish homes as affordable rentals or for sale. Housing Secretary Shaun Donovan pays a visit Wednesday.For years, Daniel Lubiano tended the roses in his front yard while watching the home across 82nd Street in South Los Angeles fall apart. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Stocks end two-day slump with a modest gainThe Dow rides surging insurance and technology shares to a 47.55-point increase in volatile trading.Insurance and technology shares led the market higher in a volatile day Wednesday, breaking a two-day slide. But a dim view of the economy from the Federal Reserve and jitters over looming earnings reports kept buyers in check. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am L.A. starts buying up foreclosed homes with federal aidLos Angeles is using its $33-million share of Neighborhood Stabilization Program money to refurbish homes as affordable rentals or for sale. Housing Secretary Shaun Donovan pays a visit Wednesday. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Deadline extended for H1-B temporary worker visas because of low demandImmigration officials are usually swamped with requests to be allowed to hire skilled foreigners, but not this year.A deep recession and surging unemployment have tamped down the usual frenzied rush of companies filing temporary visa requests to hire skilled foreign workers, and the five-day application period that ended this week has been extended. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Slow-thawing credit markets drove Fed interventionCiting evidence of a worsening recession, a Federal Reserve panel decided last month to inject hundreds of billions of dollars into the economy. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Treasury Department makes life insurers eligible for federal bailoutsSuch old-line firms as Hartford and Prudential have been battered by the credit crisis, and industry analysts have 'valid concerns' about their health. How much money they will need is unclear.Extending a lifeline to what had long been some of the nation's most prudently managed firms, the Treasury Department has decided to make ordinary life insurance companies eligible for federal bailouts. Source: L.A. Times - Business | 9 Apr 2009 | 7:00 am Deadline extended for H1-B temporary worker visas because of low demandImmigration officials are usually swamped with requests to be allowed to hire skilled foreigners, but not this year. ...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am Troubled NBC calls on exec Angela Bromstad to revive prime timeThe network passed over Bromstad two years ago. Now it's counting on her to find hits, starting tonight. Angela...Source: RSS feed - channel BNPaperBusiness | 9 Apr 2009 | 7:00 am U.S. banks holding up, but may still need aid: report(Reuters) - The U.S. banking industry seems to be in better shape than many people think, the New York Times said, citing officials involved in federal "stress tests."Source: Reuters: Business News | 9 Apr 2009 | 6:45 am U.S. banks holding up, but may still need aid: report (Reuters)Reuters - The U.S. banking industry seems to be in better shape than many people think, the New York Times said, citing officials involved in federal "stress tests."Source: Yahoo! News: Business | 9 Apr 2009 | 6:38 am Diamond miner De Beers braced for turnover to halveDe Beers the world's largest diamond miner is braced to see its turnover halve this year after tumbling diamond prices forced it to cut production.Source: Telegraph Finance | 9 Apr 2009 | 6:36 am NZ stocks: Market little changed ahead of EasterThe New Zealand share market was little changed ahead of the long Easter holiday weekend but Skellerup suffered a 21.54 per cent fall after issuing a profit warning. The benchmark NZSX-50 index closed up 2.241 points, or 0.087...Source: New Zealand Herald - Business | 9 Apr 2009 | 6:00 am Currency: NZ dollar edges upThe New Zealand dollar rose on a day with little domestic news of note ahead of the Easter holiday weekend. By 5pm the NZ dollar was buying US58.16c, up from US57.77c at 8am and from US57.30c at 5pm yesterday. The theme of the...Source: New Zealand Herald - Business | 9 Apr 2009 | 5:40 am Chinese tourists are the export that California is chasingThe California Travel and Tourism Commission has set up shop in Beijing, Guangzhou and Shanghai, aiming to market the state more aggressively as a destination for foreign visitors.Five years after closing its overseas trade bureau here, California launched a new office Wednesday aimed at getting a bigger share of one of China's biggest exports: tourists. Source: L.A. Times - Business | 9 Apr 2009 | 5:12 am How Green Is Your Gadget?
The idea started with organic beer. In recent years Scot Case had noticed an explosion in green advertising claims on everything from electronics to, yes, alcohol. So as vice president of the consulting firm TerraChoice Environmental Marketing, he dispatched researchers to investigate whether company claims were verifiable. The result: Only one of roughly 1,000 products examined in 2007 passed muster. "How am I, as a consumer, to know what's accurate?" asks Case. TelevisionsLast year Jason Cantarella replaced his old TV with a sleek flat-screen model, a $1,200 upgrade. The deal clincher? He saw an ad for an "Eco TV" with a power-saving sensor that automatically adjusts the backlight depending on ambient room light. "I wanted to reward the manufacturer," says the University of Georgia professor. ComputersExperts say computer makers have stayed ahead of the eco-curve. Just a few years ago, it was challenging to build a computer with a plastic shell that used at least 2 percent recycled materials; today some models boast more than 25 percent. Then there's the mercury, found not only in LCD TVs but also in many computers. Last year both Sony and Dell announced new mercury-free laptop screens. Mobile GadgetsWhat if you didn't have to worry at all about paying for electricity? Some portable gadgets, like cell phones and PDAs, can now channel their energy from the sun -- kind of. For $200 to $400, consumers can buy backpacks, beach totes and even briefcases outfitted with solar panels that charge special batteries, which in turn charge your device. Certainly, these "juice bags" have been a hit with outdoorsy types who enjoy hiking with an iPod or GPS. 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 | 9 Apr 2009 | 4:00 am 6 New Cars That Can Save You Cash (Deal of the Day)When it comes to buying a car these days, it's hard to deny that it's a buyer's market. Automakers are offering record cash incentives and attractive financing deals of as low as 0%. However, as good as the deals on those '09 models may seem now, it may pay to wait for the automakers 2010 lineup to hit the lots. SmartyMoney.com visited the New York International Auto Show — which opens to the public Friday — to see the automakers' latest lineup of low-priced, fuel-efficient vehicles, some of which carry price tags of below $14,000. But the low retail prices on these cars are just the beginning. Thanks to the stimulus plan, car buyers can deduct state and local sales tax on vehicles worth up to $49,500, netting some consumers who buy a bargain ride as much as $600 in savings. Then there are the individual savings. Ford's Fusion, for example, still qualifies for a hybrid tax credit of $1,700. And Kia is already offering 0% financing for up to 36 months on its 2010 Soul; while Nissan is offering recent graduates a $500 discount on its boxy-shaped Cube. Here are some of the least expensive cars of the 2010 lineup and breakdown of the savings you could reap:
1) 2010 Toyota Prius: A New Twist on an Old Hybrid Favorite
Toyota added a little more power and several cutting-edge options to the latest version of its popular hybrid — without hiking the sticker price too much higher (the base price on last year's model was $22,000). You'll have to pay extra for the solar-paneled roof that runs interior cooling fans when the vehicle is parked in the sun and a park-assist feature that parks the car on its own. But you may be able to offset some of those extra costs with the money you'll save on gas (the Prius offers some of the best gas mileage around). *Estimated base price provided by Edmunds.com 2) 2010 Kia Soul: Quirky Style, Bargain Price
Targeting young drivers, Kia's Soul is one of the least expensive cars in the auto industry's 2010 lineup. And for those who buy soon, the Soul will be even cheaper: Through May 4, buyers are eligible for promotional financing of as low as 0% for 36 months. The quirky design makes it look like a shrunken SUV, but luckily for drivers it doesn't guzzle gas like one. The Soul gets an average of 29 miles per gallon. 3) 2010 Hyundai Genesis: A Cheaper Coupe for Cash-Conscious Consumers
The Genesis sedan was a hit with car experts. (In January, it was named North American Car of the Year at the North American International Auto Show in Detoit.) Now Hyundai is hoping its sporty coupe version, which carries a price tag that's $10,000 cheaper than the sedan, will be just as popular with cash-strapped consumers. Another added bonus: Hyundai was the first automaker to offer a layoff protection plan, allowing buyers to return a leased or purchased vehicle should they get laid off. The plan covers up to $7,500 in money owed to the financing company. 4) 2010 Ford Fusion Hybrid: Last Call for a Hefty Hybrid Tax Break
Ford's Fusion hybrid may be the last opportunity for car shoppers to take advantage of a federal tax credit on hybrid cars that has already been phased out entirely for other models like the Prius. Those who buy the Fusion before September 30 receive a $1,700 credit, bringing the Fusion's price tag to $25,000. Don't forget to tack on fuel savings — the company claims the Fusion can drive up to 700 miles on a single tank of gas. 5) 2010 Honda Insight LX: Looks Like a Prius, But Isn't Priced Like One
Honda’s latest hybrid sedan looks very similar to the popular Prius, but there’s a big difference in price: The Insight’s base price is roughly $3,700 less. Of course, there are tradeoffs. At an average of 41 miles per gallon, the Insight is less fuel-efficient than the Prius. That's because its engine is always on, even when the car is running on electric power. 6) 2009 Nissan Cube: Giving Recent Grads a Helping Hand
Nissan is hoping this odd-looking boxy car will be a hit with young drivers much like Toyota's Scion xB before it. However, Nissan's latest offering is about $1,760 cheaper. Through June 30, recent graduates can get $500 in cash incentives. Nissan says it also plans to offer special financing deals after the Cube reaches dealerships later this spring. 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 | 9 Apr 2009 | 4:00 am Traders Grow Bullish Before the Holiday (Market Update)News at a Glance
The LowdownWall Street is looking to end a short week on a positive note. Stocks looked to open higher Thursday, as traders showed some enthusiasm ahead of the latest retail and labor reports. Shortly before 6 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value. The retail sector could be in play early with several firms reporting their monthly sales data before the bell. Costo (COST), for example, posted a 5% drop in quaterly sales, well below analysts' predictions for a 1.7% drop. The auto sector may also see some interest after a report that the federal government will give billions to Detroit intended to indirectly support auto parts suppliers. Banks may also garner interest on a report suggesting that the nation's large financial institutions would hold up if the recession grew worse; results indicate these firms are in surprisingly good shape. However, the companies also appear destined to need additional bailout money. In energy, crude oil got a lift before the open. Shortly before 6 a.m., oil traded up $1.61 at $50.99 a barrel. World markets were mostly higher. In Asia, Japan's Nikkei picked up 3.7%, while Hong Kong's Hang Seng rose 3.0%. In Europe, the FTSE picked up 0.3% in midday trading. Corporate News
The Economy
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 | 9 Apr 2009 | 4:00 am Double Trouble for Apollo ManagementIN TODAY'S SOUR ECONOMY, A LEVERAGED FUND INVESTED in leveraged buyouts could well mean double trouble. Just ask Leon Black and his partners in Apollo Management, whose AP Alternative Assets has performed disastrously. Its European-listed shares (AAA.Euronext) have plunged to about $1 each from an initial offering price of $20 in 2006. AP Alternative Assets' net asset value fell 45% in the fourth quarter, to $850 million, or $8.77 a share, capping a 60% decline for the full year. The drop reflected the declining value of many of the fund's investments in Apollo-engineered leveraged buyouts completed in 2006, '07 and early '08. Apollo orchestrated some of the worst LBOs in the buyout boom of recent years, including the privatizations of debt-laden Harrah's Entertainment, the casino operator; Claire's Stores, a costume-jewelry retailer; and Realogy, a real-estate broker. All three showed up recently on a Moody's list of companies at high risk of default. Worse, the decline in AP Alternative's asset value was magnified by the fund's own use of debt, or leverage. Based in the Channel Islands, AP Alternative Assets invested alongside Apollo's $10 billion LBO fund, Apollo Investment Fund VI, and put money into four Apollo-run funds that primarily bought debt instruments of companies in North America, Europe and Asia. AP Alternative finished 2008 with nearly $1.8 billion in assets, including cash, and had $900 million of debt. It's tempting to say the fund now looks cheap, except that there may be little or no value in the equity remaining in many Apollo LBOs. As the table nearby shows, the debt of most companies taken private by Apollo from late 2006 through 2008 now trades for just 20 to 30 cents on the dollar. When bondholders expect scant recovery on their investments, equity holders tend to fare worse. An Apollo spokesman declined to comment, citing the company's 2008 filing for a public stock offering. AP Alternative Assets wrote down the value of its Harrah's equity stake to $57 million at year's end, just 35% of the original cost in early 2008. Harrah's still may have about $20 billion of debt, even after a big bond exchange, and cash flow has dropped sharply. Given the debt's depressed price, the outlook for equity holders is grim. Apollo sounded an optimistic note on a conference call with investors last week, saying most of the drop in AP Alternative's asset value represents unrealized losses, and that none of its major investments is permanently impaired. The fund lifted the value of one of its holdings, Smart & Final, by 50% from its cost, reflecting what Apollo said were strong financial results at the Los Angeles-based operator of warehouse stores. The increase seems aggressive, given the carnage in other retail stocks. It's tough for investors to assess the value of AP Alternative's investments, because Apollo doesn't disclose the value of most of the individual LBO stakes, or say how the values on investments such as Smart & Final are derived. The fund is showing sizable gains in two investments, CEVA Logistics and Rexnord, an industrial company. THE USE OF LEVERAGE BY AP ALTERNATIVE ASSETS was especially risky, because the fund's chief investments are equity stakes in highly leveraged companies. The added debt can magnify both returns and risk. Then again, by enhancing potential returns, leverage enhances potential fees. As the table shows, equity accounted for less than 30% of the purchase price of most Apollo deals, with debt handling the rest. AP Alternative Assets also may be getting squeezed because it can't sell its LBO holdings in today's market. Thus, it can't return cash to investors. Apollo rival Kohlberg Kravis Roberts created a similar European-listed vehicle, KKR Private Equity Investors. Initially $5 billion, it saw its net asset value drop almost 50% last year, to $12.78 a share, due to the declining value of KKR's LBO portfolio. Its stock (KPE.Euronext) trades for just $3 a share, a steep discount to NAV, reflecting the same concerns about portfolio valuation and leverage that are dogging the Apollo fund. In recent years, many private-equity firms invested as little cash as possible to control companies, creating portfolios of "options" on businesses. Even after going private, companies sometimes took on additional debt to pay LBO sponsors "special dividends." This effectively offset the LBO investors' original equity investments, allowing them to play with house money. Apollo used this strategy with two LBOs that now are struggling: Verso Paper, a maker of coated paper used for magazines, and Noranda Aluminum. The companies paid special dividends, and amassed new debt, before the economy turned down. Verso was taken public by Apollo in 2008 at $12 a share, and now trades below $1. Debt of both Verso and Noranda trades for about 20 cents on the dollar. AP Alternative Assets' debt load -- and covenants on its $900 million of debt -- have prompted liquidity issues. The fund has extricated itself from a commitment to invest alongside Apollo's new LBO fund, Apollo Investment Fund VII, according to fund documents. That's an option that some of Apollo's financially strained institutional investors probably would love to have, too. ONE OF AP ALTERNATIVE ASSETS' BIGGEST losses in 2008 came from the Apollo Investment Europe fund, which bought subordinated debt and other low-grade debt in European companies, and got squeezed by both market declines and its use of leverage. The European fund was forced to liquidate holdings in the fourth quarter, leading to a loss for the year of nearly 80%. AP Alternative Assets initially put $339 million into that fund, an investment worth just $74 million at year-end. Amid the gloom, Apollo principals such as Black keep talking about enormous investment opportunities in the market. The firm is said to be considering a role with the Treasury's Public/Private Investment Program. Before handing money to Apollo, however, potential investors ought to study what happened to others who invested alongside the firm's supposedly savvy LBO experts. It's not a pretty picture: Some of those earlier investors are down more than 90%, and are stuck with a leveraged portfolio of illiquid stakes in highly indebted companies -- many of which may have little or no value.
The Bottom Line
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 | 9 Apr 2009 | 4:00 am Rugby fans may face paying for World Cup 2011 TVRugby fans may face missing out on the finals and semi-finals of the World Cup 2011 unless they fork out for tickets or have pay TV after Sky won the hosting rights to the tournament. Sky has won the host broadcaster rights for...Source: New Zealand Herald - Business | 9 Apr 2009 | 3:00 am Media: Sky's RWC win gives good view of its supportive Govt relationshipTelevision rights negotiations to the 2011 Rugby World Cup give a box seat view on the government's new supportive relationship with Sky Television. Sky confirmed yesterday it had won the host broadcaster rights - producing the...Source: New Zealand Herald - Business | 9 Apr 2009 | 2:30 am Unions and retailers disagree over Easter tradingAnother year has gone by without resolution of the Easter trading issue. The National Distribution Union (NDU) this morning spoke out against moves to get rid of trading bans saying it was hopeful "this year won't be the last one...Source: New Zealand Herald - Business | 9 Apr 2009 | 1:00 am Moody's strips Berkshire Hathaway of top rating (Reuters)Reuters - Moody's Investors Service cut its credit ratings on Berkshire Hathaway Inc (BRKa.N)(BRKb.N) from Aaa, the top rating, saying the recession and investment losses at insurance operations of investor Warren Buffett's holding company reduced its ability to support funding needs.Source: Yahoo! News: Business | 9 Apr 2009 | 12:15 am Moody's downgrades Berkshire HathawayWarren Buffett's Berkshire Hathaway lost its triple-A grade from Moody's Investors Service, the very ratings firm in which the billionaire holds a 20 per cent stakeSource: Financial Times - US homepage | 8 Apr 2009 | 11:41 pm Write-Offs: 04.08.09$$$ Dealbreaker is now optimized for your Blackberry. $$$ Hedge funds sat out March stock rally [Investment News] $$$ At MBIA, it's like old times [The Deal] $$$ This was apparently planned for 4PM today, though we didn't see anything about it before and just got word of it now. Moynihan, if you're reading, share the harrowing tale with the group. Another problem that Bank of America has to clean up at Merrill Lynch: Cafeteria workers call on bank executives to protect their wages.
Source: Dealbreaker | 8 Apr 2009 | 11:22 pm Germany trebles cash in fund for scrapping cars after big jump in salesGermany has dramatically boosted its car scrappage incentive scheme, more than trebling the cash on offer for owners of older vehicles to scrap them and buy new ones.Source: Latest Business News from Times Online | 8 Apr 2009 | 11:00 pm Coming soon to eBay: Bernard Madoff's tickets to the Mets' new Bailout FieldBernard Madoff, the New York conman, has already lost several homes, his yacht and his liberty since admitting a $65 billion investment fraud. He is now about to be deprived of another prize possession, an $80,000 pair of season tickets to his beloved New York Mets.$Source: Latest Business News from Times Online | 8 Apr 2009 | 11:00 pm Bigger isn't better if you're a bankGeorge Osborne, the Shadow Chancellor, is pushing two ideas for the reform of the banking system. One is bad and won't happen; the other is good(ish) and just might.Source: Latest Business News from Times Online | 8 Apr 2009 | 11:00 pm Summer tourism numbers plunge, Feb guest nights down 8pcThe tourist industry took another hard knock in February when the number of guest nights in short term commercial accommodation fell 8 per cent from a year earlier. Figures published today by Statistics New Zealand (SNZ) also show...Source: New Zealand Herald - Business | 8 Apr 2009 | 11:00 pm HSBC drops interest on low-deposit mortgagesHSBC Market DataSource: Latest Business News from Times Online | 8 Apr 2009 | 11:00 pm Aviva calls time on free pensions for 16,000 staffAviva Market DataSource: Latest Business News from Times Online | 8 Apr 2009 | 11:00 pm NZ Shares: Market eases in early tradingThe New Zealand sharemarket has edged down in early trade, despite stocks in the United States having snapped a two-day slide. Among leading shares Telecom was down 1c early to $2.36, Contact Energy slipped 3c to $5.67, while Fletcher...Source: New Zealand Herald - Business | 8 Apr 2009 | 10:37 pm Mars goes sweet for ethically sourced cocoaMars, which owns the Mars, Snickers and M&M candy brands, is to spend tens of millions of dollars annually certifying that the cocoa used in the $10bn (£6.8bn) of chocolate products it sells every year is sustainably sourced by 2020Source: Financial Times - US homepage | 8 Apr 2009 | 10:35 pm Fall in number of new mobile subscribersThe number of net new mobile phone subscribers in the world fell sharply in the fourth quarter of 2008 and the growth of mobile data revenues stalled for the first time, providing further evidence of the impact of the global economic downturn on the mobile telecoms sectorSource: Financial Times - US homepage | 8 Apr 2009 | 10:31 pm Kiwibank first to cut rates after Bollard warningKiwibank has cut its 2 year mortgage rate by 10 basis points to 6.09 per cent, the lowest 2 year rate now offered by a bank. It is the first move by a bank to cut its long term rates after Reserve Bank Governor Alan Bollard warned...Source: New Zealand Herald - Business | 8 Apr 2009 | 10:30 pm De Beers braced for turnover to fallDe Beers, the world's biggest diamond miner, is planning its turnover to halve this year in a sign of how the once-mighty group is struggling to cope with a downturnSource: Financial Times - US homepage | 8 Apr 2009 | 10:30 pm Ken Lewis Doesn't Much Care About Chairman Role Either Way
Source: Dealbreaker | 8 Apr 2009 | 10:24 pm SEC offers short sale curbs, traders irked (Reuters)Reuters - U.S. securities regulators floated five new proposals to curb short selling, drawing fire from short sellers who feel they are being made scapegoats for the financial crisis and stock market plunge.Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 10:15 pm House values fall nearly 10pcHouse prices are continuing their downward slide in New Zealand with Auckland driving the slump. Statistics from Quotable Value show a 9.3 per cent decline in national property values in the year to March - worse than the 8.9 per...Source: New Zealand Herald - Business | 8 Apr 2009 | 10:00 pm Insurers lift Wall Street; Berkshire rating cut (Reuters)Reuters - Stocks snapped a two- day slide on Wednesday on news the government is shoring up life insurers and optimism about consumer spending after Bed Bath & Beyond Inc reported a better-than-expected profit.Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 9:59 pm Downbeat outlook prevails inside FedThe Federal Reserve sharply downgraded its economic outlook at its last meeting only three weeks ago, minutes released on Wednesday revealed, challenging the view that green shoots of recovery are now plain to seeSource: Financial Times - US homepage | 8 Apr 2009 | 9:40 pm Hear: The Next Big BailoutOn today's Planet Money: -- When you need help installing a giant computer system, you might call someone like Brian McCaffrey, and these days you might be looking to pay less for that help. The IT recruiter says he's seeing hourly wage cuts of 30 percent for skilled workers on big-ticket projects. -- Another big bailout is on the way, reports the Wall Street Journal. The WSJ says the Treasury Deparment is now aiming to extend help to life insurers as part of the TARP program. It's a complicated endeavor, one that runs the gamut from your premiums to mortgage-backed securities. Rolfe Winkler of Option Armageddon walks us through. Bonus: Commuters of the world, sing out. Download the podcast; or subscribe. Intro music: Ernie and the Automatic's "The Good Times (Never Last)." Find us: Twitter/ Facebook/ Flickr Jim Wallace writes from KUOW land: I thought I would mention that typically here in Seattle traffic is a nightmare, especially from 3pm-7pm for anyone trying to cross one of our two bridges from Redmond into Seattle. However since the banking crisis almost, and especially since the Microsoft layoffs I and my friends have noticed anecdotally that traffic is way better than it used to be. I don't think Microsoft alone laid off enough people to effect traffic this much, and gas prices are still relatively low... so the question remains, why are there fewer people on the roads? Are they shopping less? Taking the bus more? The change in driving times is fairly dramatic. For what it's worth, I sometimes think my New York City subway car looks less packed. Rush hour's still a sardine can. But at off-peak times, I do find myself with more elbow room than I expected. When I cycle into work, I'm happy to say, bikers look to be a larger and larger herd all the time. Further reading: Bad economy holds highway deaths to 1960s levels. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 8 Apr 2009 | 9:40 pm NZ kiwifruit growers to destroy a million trays of fruitNew Zealand kiwifruit growers are to destroy a million trays, or 3.6m kg, of green export fruit as global demand slumps. Details of the dumping were outlined in a letter from industry export marketer Zespri to 3000 New Zealand...Source: New Zealand Herald - Business | 8 Apr 2009 | 9:37 pm Researcher ranks mutual funds by carbon footprint (AP)AP - Quick: How green is your 401(k)? If you can't tell, you're not alone.Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 9:32 pm How the Dow Jones industrials fared Wednesday (AP)
Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 9:17 pm How the Dow Jones industrials fared Wednesday (AP)
Source: Yahoo! News: Business | 8 Apr 2009 | 9:17 pm SEC advances 5 options on short-selling rules (AP)AP - Federal regulators opened a public debate Wednesday over ways to restrict trades that bet against a stock, as investors and lawmakers clamor for brakes on moves they say worsened the market's downturn.Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 9:08 pm The Obama PortfolioCreeping back up the scales. The Obama Portfolio (Since Inception): +16.75% Earlier: The Obama Portfolio
Source: Dealbreaker | 8 Apr 2009 | 9:07 pm For The Love Of All Things SmokingThis country loves the smoking memo. Loves the mere scent of the ignored warning to disaster. Loves the sting of accusation when it attaches to the retrospectively blind actor who missed the whispers from the tea leaves. Loves Markopolis. Loves seeing the SEC on the hot seat for missing the obvious. For ignoring the... the "smoking memo." Loves the ignored FBI memo warning, vaguely, on the looming dangers to the United States. No surprise then that revelations that Jack Nash warned J. Erza Merkin "numerous times over the years" that something was amiss in Chateau Madoff would produce Dealbook entries on same: Mr. Nash, the former chairman of the investment giant Oppenheimer & Company and a pioneer of the modern hedge fund industry, had briefly invested with Mr. Madoff in the early 1990s, but pulled his cash out after a closer look raised red flags about the man who last month admitted to running an enormous Ponzi scheme. We wonder, some, where the story is. "Numerous" warnings over the years that someone is "suspicious of the steady profits," is hardly a smoking memo. But then, perhaps we haven't seen all the memos? Merkin Was Warned by a Wall Street Legend [DealBook]
Source: Dealbreaker | 8 Apr 2009 | 9:01 pm Feds: US government won't take Madoff money (AP)
Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 8:56 pm Fed sees economy sliding further (Reuters)Reuters - Federal Reserve policy-makers, faced with bleaker forecasts for a rapidly worsening recession, decided to buy a "substantial" amount of U.S. Treasury and mortgage debt to halt the slide, minutes of their most recent meeting showed on Wednesday.Source: Yahoo! News: Business | 8 Apr 2009 | 8:44 pm Roubini Sees U.S. Growing Less Than 1% in 2010Source: Bloomberg - All Podcasts | 8 Apr 2009 | 8:07 pm DeLong Hopes to See Bigger Stimulus Plan from ObamaSource: Bloomberg - All Podcasts | 8 Apr 2009 | 8:04 pm Chanos Responds To Anti-Shorting ProposalsThe SEC said this morning they want comments on the five proposed rules aimed to curb short selling. Here's one, from hedge fund harem head (and Coalition of Private Investment Companies Chairman) Jim Chanos. Short version: Suck it. Long version: Suuuuck it. Longer version: "Rebuilding investor confidence should be the primary objective of any new regulatory effort and it is not clear that today's proposals will meet that simple goal. Skeptics, independent research and critical analysis must continue to play a vibrant role for our markets to grow sustainably and with integrity. Short selling is integral to improving the efficiency of markets and enhancing market quality through narrower spreads, deeper liquidity, less volatility, and greater price discovery. In recent years, short-sellers have publicly warned the marketplace about the dangers at AIG, Lehman Brothers, and Enron, as well as sounding the alarm over the credit ratings agencies, non-bank subprime lenders, and credit insurers. Proposals to inhibit short-selling have the effect of limiting this vital market-based antidote to corporate fraud and speculative bubbles, and must be carefully weighed against the clear harm that comes from ill-conceived government intervention in basic market functions."
Source: Dealbreaker | 8 Apr 2009 | 8:00 pm Juniper, F5 Networks Rated New `Buy' at Brean MurraySource: Bloomberg - All Podcasts | 8 Apr 2009 | 8:00 pm TARP's Report CardOn a quick read, a couple of points strike me in the new Congressional Oversight Panel report on the progress of TARP. COP leader Elizabeth Warren still isn't convinced she's getting a straight enough story about the bank bailout from Treasury Secretary Tim Geithner. "[T]he need for a clearly articulated strategy remains paramount," the report says. COP thinks the bank bailout is still batter, and not yet cake. The COP report says it's too early to tell whether the economic assumptions TARP is based on will hold. "Economic forecasters have predicted that a recovery in GDP will commence in the fall," the commission writes. "However, the trend line in adjustments to those predictions has been consistently downward, with the projected beginning of the recovery receding into the future and its scale diminishing." And then, of course, there's this bit about troubled banks: All successful efforts to address bank crises have involved the combination of moving aside failed management and getting control of the process of valuing bank balance sheets. . . . History offers no examples in which subsidization of existing shareholders and management produced effective assessment of asset values. Bloomberg's take on this: "Congressional Panel Suggests Firing Managers, Liquidating Banks" » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 8 Apr 2009 | 7:41 pm Not When But Which?In the never ending quest to design a system where stocks and commodities never go down (except crude oil, grain and the like, of course) it is not "will the uptick rule return" but "which uptick rule will dominate." Clever, the inevitability of the rule that is implicit in offering four versions for consideration. Plenty of argument wasted on "which version" rather than "should the damn rule exist in the first place." Someone was reading their Monier when they scratched up this plan. "The past 12 months have seen dramatic increases in volatility of oil prices, bonds, and just about every other asset class. How can anyone believe that the higher volatility of stocks was caused by the repeal of the uptick rule when volatility is higher everywhere?" asks Mr Newman. Ah, simple fool. Who wants oil prices to constantly drift upwards? (You, in the back. Yeah you. OPEC boy. Zip it). Uptick rule given new lease of life [The Financial Times]
Source: Dealbreaker | 8 Apr 2009 | 7:23 pm Gul lashes out at European criticsEuropean criticism of Turkey's increasingly assertive foreign policy is dangerous and could hamper co-operation on some of the biggest threats to western security, Turkish President Abdullah Gul has warnedSource: Financial Times - US homepage | 8 Apr 2009 | 7:14 pm Three Years Ain't Gonna Cut ItThe Federal Reserve, understandably, dislikes long-term loans. Tightening becomes difficult if you cannot call back capital quickly. Real-estate interests don't want to hear it, and have been calling for modifications to the typical three year terms, extending them out to five. The Fed is likely to give in. Shackled though they may be when it comes to monetary policy, inflation handcuffs are a walk in the park compared to widespread defaults. Real-estate investors, however, said the longer-term debt is critical to saving the commercial real-estate business, which faces a record amount of debt coming due in the next three years. Industry observers are expecting the delinquency rate to double by the end of this year and go higher next year. Problems could be magnified if the credit drought continues and owners of even healthy properties are unable to refinance. Real-Estate Industry Pushes Fed to Lengthen TALF Terms [The Wall Street Journal]
Source: Dealbreaker | 8 Apr 2009 | 6:41 pm Crew Retakes Ship
The Maersk Alabama AP Photo The crew has retaken that aid ship hijacked off the coast of Somalia -- AP reports the captain is still held hostage -- but not before listener Nicole Kontolefa noticed something. She writes: JUST listened to the last Planet Money podcast yesterday and was amazed that it is cheaper to reroute cargo ships to go around Africa than pay the canal's toll. Then when I heard about the hijacking of a cargo ship, which is rarely reported on in the States it seems -- it's a Maersk ship! Did they account for pirates in the cost benefit analysis of bypassing the Suez? The Maersk Alabama was on its way to Kenya, with a load of food supplies for East Africa. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 8 Apr 2009 | 6:14 pm Madoff To Address Wharton Graduating Class?Update: Apparently it's fake. Which is disappointing. I hate you kids. Are those rapscallions in Philly pulling a late April Fool's trick or is this thing happening for serious? If so-- road trip! In a controversial effort to provide a final bit of wisdom before students graduate, the Wharton School has invited New York financier Bernie Madoff to speak at this year's graduation ceremony. Madoff will headline Wharton graduation ceremony [Daily Pennsylvanian]
Source: Dealbreaker | 8 Apr 2009 | 6:11 pm SEC advances 5 options on short-selling rulesWASHINGTON -- Federal securities regulators are considering several ways to place restrictions on traders who bet that stock prices will fall, as investors and lawmakers clamor for brakes on moves they say worsened the market's downturn.Source: L.A. Times - Business | 8 Apr 2009 | 5:47 pm Iraqi expats join the Swedish labor poolOne Swedish city used to brag that it took in more Iraqi refugees than the entire U.S., until it ran out of jobs for the new expats. Now other towns in Sweden are trying to lure refugees with career opportunities. Alisa Roth reports.Source: Marketplace | 8 Apr 2009 | 5:15 pm Decoder: Meet Ginnie MaeMost people know about Fannie Mae and Freddie Mac, but what about Ginnie Mae? As Nancy Marshall Genzer reports, she may be a possible model for her siblings Fannie and Freddie.Source: Marketplace | 8 Apr 2009 | 5:15 pm Why we spend so much on petsHow much have you spent on your pet? Kai Ryssdal speaks with Michael Schaffer, author of "One Nation Under Dog," about why Americans spend so much on their pets.Source: Marketplace | 8 Apr 2009 | 5:15 pm Hold CEOs of big banks accountableThe congressional panel in charge of overseeing TARP says it has achieved mixed results at best. Commentator Robert Reich says it's time the CEOs of the big banks that received trillions in bailout funds be held accountable.Source: Marketplace | 8 Apr 2009 | 5:15 pm Will life insurance firms fit under TARP?Life insurance companies will soon be eligible for bailout money. But will life insurance firms fit under the expanding federal TARP? John Dimsdale reports.Source: Marketplace | 8 Apr 2009 | 5:15 pm Economy slows green investmentThe recession has slowed investment into alternative energy research. But some investors still see a bright future for clean tech. Caitlan Carroll reports.Source: Marketplace | 8 Apr 2009 | 5:15 pm Moody's outlook puts cities in bad moodBond ratings agency Moody's Investors Service has some bad news for local governments looking to fill budget gaps. Amy Scott explains.Source: Marketplace | 8 Apr 2009 | 5:15 pm Will merger of homebuilders help?Housing company stocks soared after two home building giants announced a merger. But the housing market is still struggling in the short run. So is the money being spent worth it? Mitchell Hartman reports.Source: Marketplace | 8 Apr 2009 | 5:14 pm Deutsche Bank's Lewis Sees Rapid Deterioration in Asian ExportsSource: Bloomberg - All Podcasts | 8 Apr 2009 | 5:11 pm AutoWeek's Mandel Says Clean, Economical Diesels Needed in U.S.Source: Bloomberg - All Podcasts | 8 Apr 2009 | 4:50 pm GM's Borroni-Bird Sees Potential for Small Personal VehiclesSource: Bloomberg - All Podcasts | 8 Apr 2009 | 4:41 pm Feroli Sees U.S. Debt as High as 75% of GDP in 5 YearsSource: Bloomberg - All Podcasts | 8 Apr 2009 | 4:32 pm Charting DebtCredit card borrowing hit the skids in February as Americans stopped borrowing. Overall, consumer borrowing fell out by an annualized rate of 3.5 percent. But the credit cards led the way at 9.7 percent. In the chart above, the line for household debt includes mortgages, student loans, car loans and credit cards. Check out the closer look with a chart of borrowing by quarter, after the jump. That federal line -- wow. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 8 Apr 2009 | 4:25 pm Open Thread: The New Normal
The old normal meets the new one. NPR Jeff writes: For a while now, the same question has occurred to me whenever experts debate our current economic troubles. Whether it is Geithner discussing liquidity problems suppressing prices or debates about mark-to-market, the fundamental argument seems to be what the new normal is. From one point of view, the Old Normal was artificial, fueled by the giant pool of money, cheap credit that inflated prices and led to rampant and wasteful speculation. Poor investment choices, excess housing now falling into disrepair, defaulting mortgages, all make that pool of money less gigantic. The real liquidity crisis was the over-liquidity before the housing bust, and current liquidity levels are the New Normal, reflecting the smaller pool of money and a clearer sense of the risks in real estate investment. Attempts to restore the market to the Old Normal are essentially trying to reinflate the bubble, just as Greenspan did. Bank losses are real, banks have a solvency problem, the money is gone, and the only question is who pays to recapitalize the banking system. From the other point of view, the current problems we are having go well beyond correction of a bubble. While some reduction in the size of (or rate of growth in) the pool of money is real, and rates of return on (and hence investment in and prices of) real estate may settle at a lower level for the near future, liquidity levels are far lower than these factors alone would explain. The New Normal may not be the old one, but it is much better than where we are now (or where we are headed). Specifically, current prices and liquidity levels reflect temporary psychological factors, opaqueness in complex asset values, a "bank run" mentality that harms the public good as each tries to protect himself. Government efforts to pour in liquidity and stand behind banks is an attempt not to reinflate the bubble back to the Old Normal, but rather to fight an emotional vicious cycle that would temporarily push the economy to a level well below the New Normal actually supported by the fundamentals. I hear these two arguments over and over, and I wonder, isn't there some way to test this? If the pessimists and optimists disagree about what the New Normal will (necessarily?) be, can we look at the fundamentals? Presumably we can still measure the size of the pool of money to be invested. We can count the number of houses. We can estimate the number of houses falling into disrepair, and the growth in the population, to estimate when and at what rate new housing construction will be needed. We can assume a length to the recession, and assume that people won't want to invest in treasuries at 0.25% once the economy recovers. We can make realistic estimates about the investment returns on mortgages at that time, assuming tighter standards. We can throw in some variance analysis to allow for error in our guesses. If the New Normal is a healthy one, it may make sense to throw ourselves and our (borrowed) resources to support the economy until it "takes". If the New Normal is a poorer one, it may make more sense to get out of the way, and prepare for it. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 8 Apr 2009 | 3:45 pm Harvey Pitt Says FASB Is Subject to `Clear Political Pressures'Source: Bloomberg - All Podcasts | 8 Apr 2009 | 3:09 pm Mandel Sees Oil at Low $30s to Low $40s a BarrelSource: Bloomberg - All Podcasts | 8 Apr 2009 | 3:04 pm Toxic Assets, Never Again?
The pace of mortgage-backed securities I've heard it said many times that the U.S. had basically stopped making mortgage-backed securities. But I'd never actually seen the data. That chart there is one reason there is less money available for mortgages. The numbers come from Asset-Backed Alert, which has some other interesting charts. Footnote: The chart above excludes the so-called agency mortgage-backed securities created by Fannie, Freddie and Ginnie Mae. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 8 Apr 2009 | 2:56 pm Silvia Says Pulte's Centex Purchase a Sign of Early RecoverySource: Bloomberg - All Podcasts | 8 Apr 2009 | 2:50 pm
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