Goldman sparks bank shares rally

Financial shares across Europe rise sharply after US banking giant Goldman Sachs announces surprisingly good results.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 11:10 am

Job loss cities revealed in study

Big cities outside London saw the most job losses in the past year as the UK entered recession, a study shows.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 11:05 am

Poll: 58% think Obama has clear plan

Hours before President Barack Obama on Tuesday morning delivers what the White House calls a major speech on the economy, a new national poll indicates that nearly six in 10 Americans think he has a clear plan for solving the country's economic problems.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 10:59 am

Wall Street poised for a mixed opening (AP)

AP - Wall Street is set for a mixed opening Tuesday after Goldman Sachs Group Inc. became the second major bank in less than a week to announce better-than-expected first-quarter results.

Source: Yahoo! News: Stock Markets News | 14 Apr 2009 | 10:56 am

Fed's Fisher: China cannot abandon U.S.

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 10:47 am

World markets rise on Goldman Sachs earns (AP)

AP - World stock markets rose Tuesday after surprisingly strong earnings from U.S. investment bank Goldman Sachs fueled hopes that the global banking system may be over the worst.

Source: Yahoo! News: Stock Markets News | 14 Apr 2009 | 10:45 am

24/7 Wall St.–The Channel Checkers Survey On Harley-Davidson (HOG)

Over the past week, the 24/7 Wall St.–The Channel Checkers surveyed 30 Harley Davidson dealers across the United States  to track sales trends of Harley Davidson motorcycles. We asked the following questions: 1. What bike model sell the most right now? 2. Are you sold out of any models right now? 3. How are business levels compared to this time last [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 10:43 am

Amazon apologizes for book blacklist

Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 10:42 am

Warren Buffett takes charge

Warren Buffett is famous for his rules of investing: When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact. You should invest in a business that even a fool can run, because someday a fool will. And perhaps most famously, Never invest in a business you cannot understand.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 10:37 am

Free to choose your work computer

Even in these tough economic times, tech giant Cisco offers employees some pretty sweet benefits: Employees can visit on-campus doctors and dietitians, drop off dry cleaning, or get an oil change, and now they can pick the kind of computer they want to use at work.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 10:36 am

AMR’s Serious Labor Troubles

AMR Corp. (NYSE:AMR) and unions representing pilots, flight attendents and maintenance workers at its American Airlines subsidiary are locked in labor negotiations that are growing increasingly contentious.  Shareholders should be extremely worried. As the Wall Street Journal notes, the company avoided bankruptcy in 2003 by getting $1.8 billion in payroll cuts, which is smaller than the [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 10:27 am

Currencies: Dollar edges higher as nervous markets await earnings

The U.S. dollar edged higher versus major rivals Tuesday, rising amid a nervous tone in global equity markets ahead of the release of earnings data this week.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 10:11 am

A New Boss To Be Bossed By TARP Overseers

The Administration wants to put longtime Merrill Lynch executive Herb Allison in charge of the $700 billion TARP program. Allison is currently the CEO of Fannie Mae (FNM), a job entrusted to him when the mortgage company was in deep trouble. The question is what will Allison do in his new job? According to The Wall Street [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 10:08 am

Philips Electronics to speed up restructuring as it posts loss

Philips Electronics kicks off European earnings season by swinging to a first-quarter loss and saying the current quarter isn’t looking any better.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 10:08 am

Wall Street futures mixed after Goldman (Reuters)

Reuters - Futures for the S&P 500 and the Nasdaq 100 were up 0.05 percent and 0.2 percent, respectively, at 5:47 a.m. EDT, while futures for the Dow Jones industrial average were down 0.2 percent.

Source: Yahoo! News: Stock Markets News | 14 Apr 2009 | 10:03 am

Wall Street futures mixed after Goldman (Reuters)

Reuters - Futures for the S&P 500 and the Nasdaq 100 were up 0.05 percent and 0.2 percent, respectively, at 5:47 a.m. EDT, while futures for the Dow Jones industrial average were down 0.2 percent.

Source: Yahoo! News: Business | 14 Apr 2009 | 10:03 am

Wall Street futures mixed after Goldman

(Reuters) - Futures for the S&P 500 and the Nasdaq 100 were up 0.05 percent and 0.2 percent, respectively, at 5:47 a.m. EDT, while futures for the Dow Jones industrial average were down 0.2 percent.
Source: Reuters: Business News | 14 Apr 2009 | 10:03 am

Major Earnings Estimates, A Bar Set Too Low (INTC, AMR, LUV, BTU, GOOG, GCI, HOG, GE)

We have already seen at least one major upside surprise in earnings season for the Q1-2009 period.  But we have many major companies which are expected to report earnings this week that are market-movers that are likely to set the trends for this earnings season.  Among these are CSX Corp. (NYSE: CSX), Intel Corporation (NASDAQ: [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 10:01 am

Quarter of homes 'still on market after six months'

Nearly a third of flats and more than a quarter of houses up for sale have been on the market for more than six months research has showed.
Source: Telegraph Finance | 14 Apr 2009 | 9:59 am

First drive: Chevy Volt

A few laps behind the wheel of an early version of GM's electric car shows the strengths - and possible weaknesses - of the technology.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 9:57 am

Tax Refunds Help Send False Recovery Signal

A taxpayer gets a refund check under the new stimulus program and then spends most of the money. That trend may help retail sales for the current quarter, but it will not help companies like Gap (GPS) and Dillard’s (DDS) over the longer term. The bump-up in retail sales may also mislead investors into thinking that [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 9:47 am

Indications: U.S. stock futures flat to lower as earnings season ramps up

U.S. stock futures flat to lower on Tuesday, with the broader market disconnecting from the rally in the financial space as Goldman Sachs Group blasts past earnings estimates.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 9:42 am

How to haggle on the high street

While the local supermarket may not be quite the same shopping experience as a Moroccan bazaar the credit crunch has brought at least one holiday pastime much closer to home.
Source: Telegraph Finance | 14 Apr 2009 | 9:38 am

More UBS job cuts seen, 240 axed in Asia-Pacific

SINGAPORE/ZURICH (Reuters) - Swiss bank UBS is cutting 3 percent of its Asia-Pacific staff, in what banking sources said was part of a fresh round of global job cuts at the crisis-hit bank.
Source: Reuters: Business News | 14 Apr 2009 | 9:31 am

Mortgage lending 'rises slightly'

The number of mortgages completed in February rose slightly but activity in the market remains weak, lenders say.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 9:30 am

24/7 Wall St.–The Channel Checkers Survey Of Apple (AAPL) Sales

The latest 24/7 Wall St.–The Channel Checkers survey of Apple (AAPL) stores shows that the company is holding the line on pricing and this should help earnings. Over the past week, the survey checked Apple Stores to gauge trends in sales of iPod’s and computers. We asked the following questions: 1. Are you discounting any iPod’s? 2. What is the best selling [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 9:30 am

GM recalls nearly 1.5 million vehicles

The possibility of engine fires has prompted General Motors to recall nearly 1.5 million passenger sedans manufactured between 1997 and 2003, the National Highway Traffic Safety Administration announced Monday.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 9:28 am

Hang Seng surges 4.6%, but Nikkei drops 0.9%

Most Asian markets end higher Tuesday, with the financial sector leading the advance as trading resumed in Hong Kong and Australia after recent holidays, but Japan ends slightly lower as profit-taking hits auto makers.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 9:20 am

Shell in talks with Chinese oil companies over Iraqi sites

Royal Dutch Shell is in talks with Chinese state oil firms to make a joint bid to develop oil fields in Iraq.
Source: Telegraph Finance | 14 Apr 2009 | 9:19 am

Goldman Sachs (GS) And The Secret Of Bank Earnings

Two things, which happened within hours of one another, will probably determine the value of bank stocks for the next several months. Optimism about bank earnings pushed up Citigroup(C) by 25% yesterday and Bank of America (BAC) up 15%. But, the shares in the company that started the bank rally, Wells Fargo (WFC), did not [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 9:12 am

Kaupthing's Isle of Man savers to get their money back

Threequarters of savers who lost money through the collapse of the offshore arm of an Icelandic bank will get all of their cash back after a Scheme of Arrangement was approved.
Source: Telegraph Finance | 14 Apr 2009 | 9:10 am

Risky business: Investing 100% in stocks

Question: I'm a 31-year-old doctor. I contribute the maximum to one retirement savings plans at work and I've just increased my contribution to another. At my age, I figure I should invest virtually all my money in stocks, especially because they're real cheap right now. Does this approach make sense, or am I completely wrong? --Wesley Lieving, New Haven, West Virginia
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 9:04 am

Stocks set for weak open

U.S. stocks were poised for a lower open Tuesday, as upbeat results from Goldman Sachs failed to offset broader concerns about corporate results.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 9:03 am

Fixing GM (GM) May Just Be Practice For The Government’s Next Bailout

GM’s (GM) stock trades at $1.71, which is not even its 52-week low. Several news outlets have reported that the Treasury has asked the No.1 US car company to prepare for Chapter 11. The government will probably try to have GM broken into two pieces. In that case, most of the creditors may be stuck [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 9:02 am

New mortgage approvals rise 4% in February

The number of home loans granted to borrowers by banks and building societies jumped by 4 per cent in February, boosting hopes of a recovery in the housing market.
Source: Latest Business News from Times Online | 14 Apr 2009 | 9:01 am

SEC to review if BofA broke the law: report (Reuters)

Reuters - The U.S. Securities and Exchange Commission is reviewing if Bank of America Corp violated federal securities law by failing to disclose to shareholders Merrill Lynch's plan to pay $3.62 billion in bonuses before they voted for the merger of the banks, the Financial Times said.

Source: Yahoo! News: Business | 14 Apr 2009 | 9:00 am

SEC to review if BofA broke the law: report (Reuters)

Reuters - The U.S. Securities and Exchange Commission is reviewing if Bank of America Corp violated federal securities law by failing to disclose to shareholders Merrill Lynch's plan to pay $3.62 billion in bonuses before they voted for the merger of the banks, the Financial Times said.

Source: Yahoo! News: Stock Markets News | 14 Apr 2009 | 9:00 am

SEC to review if BofA broke the law: report

(Reuters) - The U.S. Securities and Exchange Commission is reviewing if Bank of America Corp violated federal securities law by failing to disclose to shareholders Merrill Lynch's plan to pay $3.62 billion in bonuses before they voted for the merger of the banks, the Financial Times said.
Source: Reuters: Business News | 14 Apr 2009 | 9:00 am

Climate change to cost Japan dearly if unchecked

Half of Japan's sand beaches could be wiped out by rising sea levels, and extensive flooding could inflict damages of 8.7 trillion yen ($87.4 billion) annually by the end of the century if little action is taken to counteract global warming, a Japanese government study warns Tuesday.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 8:59 am

BT shares hit by possible write-down, dividend cut

Shares in U.K. telecoms giant BT dropped as much as 6% Tuesday after reports that it plans to take a 1.5 billion pound ($2.2 billion) write-down, slash its dividend and cut another 10,000 jobs.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 8:50 am

Qantas warns on profits and cuts jobs

Australia's largest airline cuts profit forecast by more than half and announced that it would shed 1750 fulltime jobs.
Source: Telegraph Finance | 14 Apr 2009 | 8:46 am

London Markets: Barclays leads bank advance in upbeat London

British financial-sector stocks strong on Tuesday, with Barclays among the best performers in percentage terms, after U.S. investment bank Goldman Sachs reports much better-than-expected quarterly results.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 8:45 am

Aeon posts bigger-than-expected loss for the year

Aeon Co. Ltd. reported on Tuesday a bigger-than-expected loss for the fiscal year as operating income dropped 20% on the heels of broad weakness in the retail sector.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 8:43 am

Fears continue over future of GM

Shares in US carmaker General Motors fall in Europe after reports that the US government wants it to start bankruptcy proceedings.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 8:40 am

Goldman paves way to repay TARP

Goldman Sachs reported a much stronger-than-expected first-quarter profit Monday, bouncing back from its worst quarter as a public company.
Source: Business and financial news - CNNMoney.com | 14 Apr 2009 | 8:30 am

Mitsubishi Chemical, Sinopec to partner in China: report

Mitsubishi Chemical and Sinopec reportedly agree to work together on a wide scope of Chinese-based operations.

Source: MarketWatch.com - Top Stories | 14 Apr 2009 | 8:22 am

Qantas heads towards first H2 loss in six years

SYDNEY (Reuters) - Qantas Airways Ltd forecast on Tuesday its first second-half loss in six years and unveiled capacity and job cuts as Australia's biggest airline battles a slump in passenger demand and rising competition.
Source: Reuters: Business News | 14 Apr 2009 | 8:16 am

Private equity groups back Skype founders to buy back business from eBay

Four leading private equity companies are backing the founders of Skype the internet phone business in their quest to buy back the business from eBay.
Source: Telegraph Finance | 14 Apr 2009 | 8:10 am

GM shares fall in Frankfurt amid bankruptcy fears (Reuters)

Reuters - Shares in General Motors Corp slumped more than 17 percent in Frankfurt on Tuesday amid growing concern the automaker might file for bankruptcy.

Source: Yahoo! News: Business | 14 Apr 2009 | 8:04 am

GM shares fall in Frankfurt amid bankruptcy fears

FRANKFURT (Reuters) - Shares in General Motors Corp slumped more than 17 percent in Frankfurt on Tuesday amid growing concern the automaker might file for bankruptcy.
Source: Reuters: Business News | 14 Apr 2009 | 8:04 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 | 14 Apr 2009 | 8:01 am

E-Revolutionary Technology for end-to-end Cash Management in Germany

UTRECHT, The Netherlands, April 14 /PRNewswire/ -- - Cash Logistik AG is Changing the Cash Industry Using Transtrack International's Software Suite ...
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 8:00 am

World stocks push higher as Goldman cheers (Reuters)

Reuters - World stocks rose toward a three-month high on Tuesday after strong earnings from Goldman Sachs , while jitters about other corporate earnings kept government bonds and the low-yielding yen on a firm footing.

Source: Yahoo! News: Business | 14 Apr 2009 | 7:59 am

World stocks push higher as Goldman cheers

LONDON (Reuters) - World stocks rose toward a three-month high on Tuesday after strong earnings from Goldman Sachs , while jitters about other corporate earnings kept government bonds and the low-yielding yen on a firm footing. Goldman surprised investors by posting a much higher than expected first-quarter profit and said it planned a $5 billion common share sale to pay back government funds. Other bank shares which are due to post their results this week also rallied on Wall Street
Source: Reuters: Business News | 14 Apr 2009 | 7:59 am

Media Digest 4/14/2009 Reuters, WSJ, NYTime, FT, Barron’s

According to Reuters, Ebay’s (EBAY) shares are cheap by many measures but investors are avoiding the company, while Amazon’s (AMZN) are so expensive that investors are concerned. Reuters reports that the SEC will examine whether Bank of America (BAC) broke the law by failing to disclose Merrill Lynch bonuses. Reuters reports that Obama will tap the Fannie [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 7:56 am

FTSE 100 rises above 4000 in choppy trade

The FTSE 100 edged above the psychologically important 4000 level in choppy trade on Monday.
Source: Telegraph Finance | 14 Apr 2009 | 7:55 am

Fed's Fisher says China won't harm U.S. interests

HONG KONG (Reuters) - Dallas Federal Reserve President Richard Fisher said on Tuesday China would not do anything to harm U.S. interests such as dumping Treasuries, adding that solid capital returns support the dollar's attractiveness.
Source: Reuters: Business News | 14 Apr 2009 | 7:43 am

Fed's Fisher says China won't harm U.S. interests (Reuters)

Reuters - Dallas Federal Reserve President Richard Fisher said on Tuesday China would not do anything to harm U.S. interests such as dumping Treasuries, adding that solid capital returns support the dollar's attractiveness.
Source: Yahoo! News: Business | 14 Apr 2009 | 7:43 am

SNAPSHOT - Financial Crisis - 0735 GMT

- Goldman Sachs beats forecasts with $1.66 billion Q1 profit; to raise $5 billion
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 7:35 am

Australian stocks: Market closes over 2pc higher

MELBOURNE - The Australian share market closed higher on Tuesday on the back of stronger banking and resources stocks, with a sharp fall and recovery in Qantas stock one of the session's highlights. At the 1615 AEST close, the...
Source: New Zealand Herald - Business | 14 Apr 2009 | 7:33 am

Stocks in Kuwait's troubled Gulf Bank dive (AFP)

AFP - Shares in Kuwait's Gulf Bank dived more than 50 percent when they resumed trading on Tuesday after a six-month suspension over massive losses from derivative trading.

Source: Yahoo! News: Stock Markets News | 14 Apr 2009 | 7:26 am

Australia miner agrees China sale

Australian miner Oz Minerals signs off a takeover offer from China's Minmetals that will solve its debt crisis and secure its future.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 7:26 am

Dairy industry sees less-gassy future for cows

The U.S. dairy industry wants to engineer the "cow of the future" to pass less gas, a project aimed at cutting the industry's greenhouse gas emissions by 25 percent by 2020. The cow...
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 7:25 am

Fannie Mae chief Herb Allison tipped to run US bankrescue program

Fannie Mae chief executive officer Herb Allison is the leading candidate to run the Treasury office overseeing the 700bn US bankrescue program Bloomberg reports quoting sources.
Source: Telegraph Finance | 14 Apr 2009 | 7:17 am

Asia Markets And Europe Open 4/14/2009

Markets in Asia were narrowly mixed. The Nikkei fell .9% to 8,843. The Hang Seng moved up 3.1% to 15,382. The Shanghai Composite rose .5% to 2,527. In Europe, at the open, the FTSE was down .2%. The Daxx was off .1% to 4,485. And, the CAC 40 was down .4% to 2,987. Data from MarketWatch and Reuters. Douglas A. McIntyre [...]

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Source: 24/7 Wall Street | 14 Apr 2009 | 7:17 am

Philips Q1 swings to loss, to speed up restructuring

AMSTERDAM (Reuters) - Dutch Philips Electronics NV said on Tuesday it would accelerate restructuring measures in the second quarter after its first-quarter results swung to a loss and missed analyst expectations.
Source: Reuters: Business News | 14 Apr 2009 | 7:12 am

Mitsubishi Chemical, Sinopec to broaden alliance

TOKYO, April 14 (Reuters) - Japan's Mitsubishi Chemical Holdings Corp said on Tuesday it would enter a strategic partnership with China's Sinopec in petrochemicals to lower procurement and development...
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 7:11 am

NZ stocks: Market climbs 1pc

The New Zealand sharemarket closed more than 1 per cent higher today as it returned to work after the Easter break. The benchmark NZSX-50 index closed up 28.67 points, or 1.1 per cent, at 2599.82, following a mere 2-point rise...
Source: New Zealand Herald - Business | 14 Apr 2009 | 7:11 am

Thai protesters call off siege

Thai anti-government protesters ended a three-week siege of the prime minister's office, stepping back from a confrontation that had raised fears that renewed instability would further damage the economy
Source: Financial Times - US homepage | 14 Apr 2009 | 7:05 am

Qantas axes more jobs and warns on profits

Qantas, Australia’s leading airline carrier, today slashed its annual profit forecast by $AU300 million ($£147 million) and announced plans to cut another 1,750 jobs in a bid to weather the global financial crisis.
Source: Latest Business News from Times Online | 14 Apr 2009 | 7:04 am

On-location film and TV shoots in L.A. hit lowest levels on record

The recession and incentives from other states have caused location work in the region to fall to the lowest levels on record, a FilmL.A. report to be issued today shows. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

Ford seen on brighter path despite rough road

The carmaker's stock is up, helped by the perception that it can go on without a government bailout. Ford Motor...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

On-location film and TV shoots in L.A. hit lowest levels on record

The recession and incentives from other states have caused location work in the region to fall to the lowest levels on record, a FilmL.A. report to be issued today shows.

Location filming for movies and TV commercials on the streets of Los Angeles, once as prevalent as the corner taco truck, is rapidly fading to black. Double whammies of the recession and out-of-state economic incentives for producers have caused on-location film shoots in the Los Angeles area to fall to their lowest levels on record.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

For three fragrance firms, joining forces sometimes makes scents

The three rivals all benefited from working together on a project. Such alliances can help ensure the survival of small businesses during these tough times, experts say.

As he pursued a new line of work for his small fragrance firm, Neal Harris realized something startling: His competitors might be able to do the job better.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Amazon blames book-search glitch on 'cataloging error'

The disappearance of certain titles quickly led to public uproar. The online retailer says more than 57,000 books were affected, including those about gays, lesbians, health and erotica. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

When fast food gets in the fast lane

Carl s Jr. is addressing a super-size image problem in its advertising by practically undressing Padma Lakshmi as she makes love to a hamburger. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

Boston station agrees to air Jay Leno show at 10 p.m.

NBC had threatened to cut off all its programming to rebellious WHDH-TV. Affiliates worry the Leno show will be a ratings drag on their local newscasts. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

Investment firm targeted Latinos in Ponzi scheme, SEC alleges

Maximum Return Investments of El Segundo and its owner misappropriated or lost $23 million from about 150 Latino investors in California and six other states, the federal regulator said in a lawsuit. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

Express Scripts to buy rival NextRx from WellPoint

Prescription benefit manager Express Scripts Inc. said Monday that it would buy rival NextRx from WellPoint Inc. for $4.68 billion in cash and stock.
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

When fast food gets in the fast lane

Carl s Jr. is addressing a super-size image problem in its advertising by practically undressing Padma Lakshmi as she makes love to a hamburger.

When I watch the Carl's Jr. commercial featuring "Top Chef" host and mega-model Padma Lakshmi make hot sweet love to a Western Bacon Cheeseburger, I have many thoughts, some of which, I confess, are not entirely to my credit. The spot features the former Mrs. Salman Rushdie sitting on a brownstone stoop in a clingy sundress hiked up mid-thigh, cramming the giant burger into her educated maw and sucking barbecue sauce from her fingers and wrists. Let's not mince onions here: This is sex with a burger.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Ford seen on brighter path despite rough road

The carmaker's stock is up, helped by the perception that it can go on without a government bailout.

Ford Motor Co. has long maintained that a bankruptcy filing by one of its Detroit competitors could have disastrous effects on it as well.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Government incentives for entrepreneurs offer minimal returns

Most start-ups and existing small businesses don't generate a lot of new jobs or sales, an economics professor says.

Federal and state governments are spending billions to boost entrepreneurial activity to help drive the country out of recession. But those efforts may not bring the kind of job growth and economic benefit that many expect, according to economics professor Scott Shane, who has dug into years of data to try to get a clearer picture of entrepreneurship and its effects.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Saxo Bank Quarterly Outlook: 'The Pace of Economic Decline is Petering Out'

COPENHAGEN, April 14 /PRNewswire/ -- In a follow-up to their financial Outlook for 2009, Saxo Bank, the online trading and investment specialist, has launched its first...
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 7:00 am

Weekend box office

Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

For three fragrance firms, joining forces sometimes makes scents

The three rivals all benefited from working together on a project. Such alliances can help ensure the survival of small businesses during these tough times, experts say. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

Stocks end mixed ahead of a flurry of earnings

The Dow recovers from a 120-point deficit early in the session, closing down 25.57 points. Broader indexes post gains. ...
Source: RSS feed - channel BNPaperBusiness | 14 Apr 2009 | 7:00 am

Investment firm targeted Latinos in Ponzi scheme, SEC alleges

Maximum Return Investments of El Segundo and its owner misappropriated or lost $23 million from about 150 Latino investors in California and six other states, the federal regulator said in a lawsuit.

The Securities and Exchange Commission filed a lawsuit Monday against an El Segundo investment firm, accusing its owner of operating a $23-million Ponzi scheme that targeted Latino investors from seven states.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Weekend box office

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Goldman Sachs plans to repay $10-billion TARP bailout

The Wall Street giant says it will sell $5 billion in stock and use other resources to return the taxpayer money it received last fall.

At Goldman Sachs Group Inc., the U.S. Treasury became one stakeholder too many.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

Skype founders may try to buy service back from EBay

EBay bought the Internet calling service from Niklas Zennstrom and Janus Friis in 2005 for more than $3.1 billion. The pair are reportedly seeking private equity partners to help facilitate a deal.

If the Skype founders succeed in buying back the Internet calling service from EBay Inc., it would dissolve a marriage that made little sense to customers or investors.

Source: L.A. Times - Business | 14 Apr 2009 | 7:00 am

UK drug shows early promise against Alzheimer's

LONDON, April 14 (Reuters) - A new drug against Alzheimer's disease, developed by British researchers, has shown promise in tests on a handful of patients.
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 6:59 am

Singapore economy in record fall

Singapore's economy shrank by an estimated 19.7% in the first quarter of 2009, its biggest quarterly contraction on record.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 6:56 am

Teenager Michael "Mikeyy" Mooney fears being sued for creating Twitter worm

A 17yearold boy who has admitted creating the virus that wreak havoc on Twitter over the weekend is worried about being sued by the social networking site.
Source: Telegraph Finance | 14 Apr 2009 | 6:56 am

UPDATE 1-Shell in talks with Chinese for Iraq oil bid -CEO

BEIJING, April 14 (Reuters) - Royal Dutch Shell Plc said on Tuesday it is holding discussions with Chinese state oil firms to jointly bid for oil projects in Iraq.
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 6:54 am

MARKETS-FRANCE-BENELUX/STOCKS (UPDATE 2)

Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit http:...
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 6:49 am

Philips steps up cost savings as losses grow

Philips, the Dutch electronics giant, said today it would accelerate restructuring measures over the second quarter after reporting a loss of €57 million (£51 million) during the first three months of the year.
Source: Latest Business News from Times Online | 14 Apr 2009 | 6:47 am

Is the choke-hold on the global economy easing?

There are now signs the recession-imposed choke-hold on the world economy could be starting to ease as multi-billion-dollar government stimulus measures bear fruit, according to heavily...
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 6:44 am

UPDATE 1-Ipsen in anti-wrinkle drug side-effect talks in US

*Analysts see Reloxin marketing approval in H2 (Adds analyst, background)
Source: RSS feed - channel BNewsBusiness | 14 Apr 2009 | 6:40 am

US government considering General Motors equity stake

The US government is considering swapping some of the 13.4bn General Motors owes it for an equity stake in a strippeddown version of the carmaker Bloomberg reports quoting sources.
Source: Telegraph Finance | 14 Apr 2009 | 6:22 am

Goldman beats forecasts, to raise $5 billion

NEW YORK (Reuters) - Goldman Sachs Group Inc posted much higher-than-expected first-quarter profit as it took more trading risk, and said it plans a $5 billion common share sale to help pay back government funds.
Source: Reuters: Business News | 14 Apr 2009 | 6:20 am

Qantas slashes profits forecast

Qantas Airways cuts its profit forecast by more than half and announces job cuts in order survive the economic downturn.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 6:16 am

Downturn hits profits at Philips

Consumer electronics giant Philips reports a first quarter loss as the downturn bites, but says its cost-cutting plan is on track.
Source: BBC News | Business | World Edition | 14 Apr 2009 | 6:07 am

Loosening of Cuba embargo could mean huge possibilities for U.S. businesses

The policy shift could lead to telecom deals and more air travel, among other opportunities. The degree of access that Cuba will offer, however, is still in question.

Airline flights. Phone service. Money transfers.

Source: L.A. Times - Business | 14 Apr 2009 | 5:40 am

Currency: Dollar making up lost ground

The New Zealand dollar bounced back a little this afternoon having earlier given up week-highs against the greenback. By 5pm, the kiwi was at US59.10c, little changed from 8am but short of its US59.30c peak early this morning. The...
Source: New Zealand Herald - Business | 14 Apr 2009 | 5:33 am

February car sales take a dive

If you have decided against buying that new set of wheels because of the recession, you are not alone. February sales figures show car sales dropped $17 million or just over three per cent. Statistics New Zealand reports an overall...
Source: New Zealand Herald - Business | 14 Apr 2009 | 5:08 am

N Korea to restart nuclear arms plant

North Korea responded to UN action against its long-range rocket launch by saying it would expand its atomic weapons programme, resuming work at plutonium-producing facilities that were mothballed as part of a diplomatic rapprochement in 2007
Source: Financial Times - US homepage | 14 Apr 2009 | 4:57 am

Massive Qantas job cuts won't affect NZ

Qantas Airways chief executive Alan Joyce says the airline's plan to axe up to 1750 jobs will not affect New Zealand positions. Qantas said today it would remove a further 500 management positions and up to 1250 equivalent full-time...
Source: New Zealand Herald - Business | 14 Apr 2009 | 4:33 am

Futures Point to Flat Start on Bank Results (Market Update)

News at a Glance

• Banking Surprise: Goldman post profit, beats the Street.
• Enthusiasm on Hold: Major indexes headed toward flat start.
• Obama Speaks: President to discuss economy at 11:30 a.m.
• Polling for Dollars: 71% of Americans trust Obama to fix economy.

The Lowdown

A surprisingly rosy earnings report from the financial sector was not enough to rally traders on Tuesday morning.

Stocks looked to open flat, as traders appeared to brush off a strong quarter from Goldman Sachs (GS), shifting their focus toward key economic data and a speech from President Obama. Shortly before 6 a.m., Dow, Nasdaq and S&P 500 futures were trading right around fair value.

Goldman Sachs surprised Wall Street by posting a $1.8 billion profit, restoring some faith in a financial sector rocked by volatility and bad debt. However, shares of the firm slipped before the open ahead of critical economic updates.

The March reports on wholesale inflation and retail sales are scheduled to be released later this morning before the opening bell. Inflation is expected to have remained in check and within the comfort zone of the Federal Reserve (staving off some fears of stagflation), while the retail sector is expected to have shown some life outside of Detroit.

In other economic news, President Obama is expected to deliver a speech on the economy at 11:30 a.m. from Georgetown University in Washington. The White House said the press conference would include "a major speech" on the economy, however Washington insiders have been known to hype largely empty speeches in an effort to drum up press.

In energy, oil prices rose before the open. By 6:02 a.m., crude traded up 94 cents at $50.99 a barrel.

World markets were mixed. In Asia, Japan's Nikkei dropped 0.9%, while Hong Kong's Hang Seng picked up 4.6%. In Europe, the U.K.'s FTSE picked up 1.2% in afternoon trading.

Corporate News

• Goldman Sachs (GS) shocked traders by posting a larger-than-expected first-quarter profit, just months after the firm hit a new low by posting its worst quarterly record in company history. Last quarter, Goldman earned $1.81 billion, or $3.39 a share, well above analysts' estimates of $1.64 a share.
• Bank of America (BAC) is the subject of an investigation by the Securities and Exchange Commission to determine whether the firm broke the law when it failed to tell shareholders that Merrill Lynch planned to pay out $3.6 billion in bonuses before they voted on the firms' merger, The Financial Times reported. Merrill distributed its bonuses a month ahead of schedule in order to beat the clock on the merger.
• General Motors (GM) may have a new option in paying down some of its debt to the U.S. government: an equity sale. The Obama administration is considering a deal in which the federal government would acquire a stake in the troubled automaker in exchange for reducing a portion of its $13.4 billion debt to the country, Bloomberg reported, citing anonymous sources. Partitioning a piece of the firm for the government would mean a smaller pie for bondholders, who own about $27.5 billion of the firm's debt.

The Economy

• The March reading of the Producer Price Index, a measure of inflation, is scheduled to be released at 8:30 a.m. by the Labor Department. Economists predict no change in the PPI after the index rose 0.1% in February. Economists predict the core PPI, which excludes food and energy prices, will climb 0.2%, up a bit from a February increase of 0.1%.
• The March report on retail sales is scheduled to be released at 8:30 a.m. by the Commerce Department. In February, retail sales slipped 0.1% (excluding autos, sales rose 0.7%). For March, economists predict sales will have risen 0.3% (or, excluding autos, no change).
• The February report on business inventories, a measure of lag demand relative to expectations, is scheduled to be released at 10 a.m. by the Commerce Department. In January, inventories slipped 1.1%. For February, economists project an decrease of 1.2%.

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 | 14 Apr 2009 | 4:00 am

Singapore warns of worst economic plunge amid shrinking GDP

Singapore has warned that the continuing crisis in global finance and trade will trigger the city state’s worst economic plunge on record this year — a nosedive that today forced the central bank into a move amounting to a one-time currency devaluation.
Source: Latest Business News from Times Online | 14 Apr 2009 | 3:22 am

NZers enjoying cheap night at home, retail figures show

New figures reveal the nation is collectively enjoying a cheap night at home, with a home cooked meal, bottle of wine and a DVD." Data from Statistics New Zealand (SNZ) today show seasonally adjusted total retail sales rose 0.2...
Source: New Zealand Herald - Business | 14 Apr 2009 | 2:53 am

ASB Bank expects inflation fall

The ASB bank expects that Friday's CPI figures will show a fall in annual inflation to 3.1 per cent in the first quarter. The bank says food, tobacco excise, education and housing costs have risen but have been offset by weaker...
Source: New Zealand Herald - Business | 14 Apr 2009 | 2:03 am

Obama to tap Fannie Mae CEO to head TARP: source

NEW YORK (Reuters) - The Obama administration is expected to name Fannie Mae Chief Executive Herb Allison to head the U.S. government's $700 billion financial rescue program, a source familiar with the matter said on Monday.
Source: Reuters: Business News | 14 Apr 2009 | 2:03 am

Obama to tap Fannie Mae CEO to head TARP: source (Reuters)

Reuters - The Obama administration is expected to name Fannie Mae Chief Executive Herb Allison to head the U.S. government's $700 billion financial rescue program, a source familiar with the matter said on Monday.
Source: Yahoo! News: Business | 14 Apr 2009 | 2:03 am

Farm sales stay low, lifestyle property prices hold up

Lifestyle property prices are holding up, but it is too early to tell if rural property sales have recovered given the low turnover in dairy farms, the Real Estate Institute said today. The median price for lifestyle properties...
Source: New Zealand Herald - Business | 14 Apr 2009 | 1:30 am

Meltdown 101: Is there a downside to mortgage aid? (AP)

AP - It's welcome relief for homeowners struggling with mortgage payments.
Source: Yahoo! News: Business | 14 Apr 2009 | 1:24 am

Global ad spending to fall by 7%

Declines in global advertising will be much worse than expected, says a leading media buyer, which will on Tuesday unveil the grimmest forecasts yet seen for the advertising market and traditional media companies
Source: Financial Times - US homepage | 14 Apr 2009 | 1:00 am

Wall St earnings season starts with Goldman Sachs surprise

NEW YORK - Stocks ended mostly higher on Wall St overnight ahead of a flurry of earnings reports that could determine whether the economy is really getting better, as investors have been hoping over the past month. Early signs...
Source: New Zealand Herald - Business | 14 Apr 2009 | 1:00 am

Dealbreaker Afterdark: Fannie Mae CEO To Head Bailout Nation

And you thought today would end without a good, deep laugh.

President Barack Obama is expected to tap Fannie Mae Chief Executive Herb Allison to head the government's $700 billion financial-rescue program, people familiar with the matter say.

Bank Vet Tapped to Run Bailout [The Wall Street Journal]

Source: Dealbreaker | 14 Apr 2009 | 12:31 am

Phone competition improving, says Commerce Commission

Signs of increasing competition were seen in fixed line telecommunications markets in 2008, but the competitive environment for mobile services was relatively unchanged from previous years, the Commerce Commission says. The commission...
Source: New Zealand Herald - Business | 14 Apr 2009 | 12:30 am

Cross named head of SEC corp finance division (AP)

AP - A former official of the Securities and Exchange Commission, Meredith Cross, is returning to the agency to head its division that oversees company disclosures to the public, the SEC announced Monday.
Source: Yahoo! News: Stock Markets News | 14 Apr 2009 | 12:29 am

Phil Spector found guilty of murder

Legendary music producer Phil Spector was convicted on Monday of murdering a Hollywood actress in 2003 and will likely spend the rest of his life in prison
Source: Financial Times - US homepage | 14 Apr 2009 | 12:21 am

Obama relaxes travel restrictions to Cuba

President Barack Obama took a big step towards relaxing sanctions on Cuba, lifting all travel and remittance restrictions on Cuban-Americans and permitting US telecoms companies to offer services directly to the island
Source: Financial Times - US homepage | 13 Apr 2009 | 11:23 pm

Private equity giants support Skype founders deal

Four private equity groups have joined forces to support the founders of Skype, the revolutionary internet calls group, in an attempt to buy back the business from eBay.
Source: Latest Business News from Times Online | 13 Apr 2009 | 11:21 pm

Goldman Sachs sees strong results

US financial giant Goldman Sachs posts a $1.8bn quarterly profit, more than expected and a day ahead of schedule.
Source: BBC News | Business | World Edition | 13 Apr 2009 | 11:20 pm

SEC to review whether BofA broke the law

Regulator to examine whether bank contravened securities law by not telling shareholders about Merrill Lynch's plan to pay out $3.6bn in bonuses before they voted for a merger
Source: Financial Times - US homepage | 13 Apr 2009 | 11:16 pm

US stocks end mixed on profit taking (AFP)

AFP - US stocks ended mixed Monday in choppy trading after pulling back from sharp losses on profit taking ahead of a plethora of corporate earnings data to be released.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 11:09 pm

Goldman Sachs to sell $5bn in shares to repay Tarp loan$

Goldman Sachs said that it would raise $5 billion ($£3.4 billion) in a share sale to pay off its government loan, as the Wall Street bank revealed an expectation-beating $2.6 billion pre-tax profit for the first quarter of 2009.$
Source: Latest Business News from Times Online | 13 Apr 2009 | 11:00 pm

City recruitment slumps as students reject exam route

The number of students sitting examinations that allow them to work in the City has collapsed and could be running at a third of its earlier levels.
Source: Latest Business News from Times Online | 13 Apr 2009 | 11:00 pm

US taxpayers' costs likely to rise after AIGFP staff quit

Twenty key executives have left AIG Financial Products (AIGFP) after the furore over their bonuses, increasing the cost of rescuing the troubled business to US taxpayers, its chief executive has said.
Source: Latest Business News from Times Online | 13 Apr 2009 | 11:00 pm

Need to know: QinetiQ strike threat ... Nokia down ... SSL update

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 13 Apr 2009 | 11:00 pm

Lobby group hopes Chancellor will lift tax burden hanging over North Sea oil and gas industry

The leading lobby group for the North Sea oil and gas industry has called on the Chancellor of the Exchequer to introduce tax concessions for its members or risk about 50,000 job losses inside two years and a looming energy crunch.
Source: Latest Business News from Times Online | 13 Apr 2009 | 11:00 pm

Healthy paranoia

How Cisco hopes to turn recession into opportunity
Source: BBC News | Business | World Edition | 13 Apr 2009 | 10:52 pm

Write-Offs: 04.13.09

$$$ Recession Pain, Even in Palm Beach [NYT]

$$$ Mr. Whitney/WWE Not On Good Terms? [Wrestling Edge]

$$$ AIG: Bonuses or ransom? [The Deal]

$$$ Can GM Be Sold In Bankruptcy? [Deal Journal]

Source: Dealbreaker | 13 Apr 2009 | 10:44 pm

Marriott to discontinue paper delivery

The decision is expected to cut the number of papers provided by 18m copies a year, in the latest blow to the country's struggling newspaper industry
Source: Financial Times - US homepage | 13 Apr 2009 | 10:42 pm

Goldman push to repay $10bn

Goldman Sachs signalled its determination to be the first major bank to emerge from the financial crisis, revealing plans late on Monday to raise $5bn to pay back government funds and reporting stronger-than-expected first-quarter earnings of $1.81bn
Source: Financial Times - US homepage | 13 Apr 2009 | 10:39 pm

Hear: Too Big For That

On today's Planet Money:

-- The last time we talked about mark-to-market accounting, a whole bunch of you wrote back, "Enron." And you were right. Bloomberg columnist and former WSJ reporter Jonathan Weil reported in 2000 on how Enron used market-to-market to create mammoth earnings. Now Weil tells you why he thinks banks should have to stick with the system now.

-- Everything you want to know about a community, you can find out from its newspaper -- especially its classified ads. Bob Barsanti, a teacher, has been tracking the ads on Nantucket island with his classes. If you're looking to rent, he says, you're in luck.

-- A couple of execs from the Minnesota Federal Reserve wrote a book five years ahead of its time. Gary Stern and Ron Feldman's Too Big to Fail: The Hazards of Bank Bailouts hit the world in 2004. It's growing more relevant by the day.

Bonus: Tips from the SEC.

Download the podcast; or subscribe. Intro music: Wolf Parade's "Shine a Light." Find us: Twitter/ Facebook/ Flickr

Denise Hesselroth sends the photo below, which showed up in her daughter's refund check from the IRS. It's part of a public service campaign. You can get the full list of Top tips for 2009 straight from the SEC. Among other tidbits, the campaign advises that we go ahead and open those statements about our 401(k)s. You go first, all right?

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 10:37 pm

Crédit Agricole arm set for US boost

CLSA, the Asia-focused brokerage arm of Crédit Agricole, is planning an aggressive push in the US spurred on by the belief investors will demand research that is both more independent and more international
Source: Financial Times - US homepage | 13 Apr 2009 | 10:30 pm

A Comeback For The Carry Trade?

Japan's economy has been hit badly by the recession, partly because the yen, Japan's currency, has risen steeply since the start of the financial crisis. A stronger yen makes Japanese exports more expensive, which is bad news for that country's economic growth.

To get the economy moving again, there is some talk that the government could try to depress the yen's value by encouraging a return of the carry trade.

One way they are doing this is by cutting interest rates.

The mechanics of a carry trade work like this: you sell a currency with a low interest rate, like the Japanese yen, whose rates are 0.1%, and you buy assets with a higher interest rate, like Australian fixed-income securities, with interest rates of 3%. The difference between them -- 2.9% -- is the carry, and this is what an investor earns from the trade. Not bad, since short-term U.S. Treasury bonds have a yield of less than 1%.

The carry trade was a hallmark of the pre-financial crisis years. Throughout 2006 and 2007, the yen fell and the Australian and New Zealand dollar soared in value.

When the value of the yen started to move upward, the carry trade lost its celebrity status very quickly.

But recent action in the markets show there are some tentative signs that investors are returning to the carry trade. The Australian dollar is at a six-month high and the yen has fallen in value.

Carry trades remain risky business. When the yen began to rise at the start of the financial crisis, investors holding on to carry trades found they were losing money. They borrowed yen in the hope it would continue to lose value -- but they ended up paying it back at a higher rate.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 9:57 pm

Goldman Sachs Q1: Pay Up, People Down

Compensation and benefits expenses (including salaries, discretionary compensation, amortization of prior year equity awards and other items such as payroll taxes, severance costs and benefits) were $4.71 billion, 18% higher than the first quarter of 2008, primarily due to higher net revenues. The ratio of compensation and benefits to net revenues was 50.0%, compared with 48.0% for the first quarter of 2008. Employment levels decreased 7% compared with the end of fiscal year 2008.

Goldman Sachs 2009 Q1 Earnings [PDF]

Goldman Sachs Reports First Quarter Earnings Per Common Share of $3.39 [Market Watch]

Source: Dealbreaker | 13 Apr 2009 | 9:26 pm

How the Dow Jones industrials fared Monday (AP)

AP - Stocks erased big losses to end mostly higher Monday ahead of a flurry of earnings and economic reports that could determine whether the bets investors made in the past month on a stabilizing economy will pay off.

Source: Yahoo! News: Business | 13 Apr 2009 | 9:18 pm

How the Dow Jones industrials fared Monday (AP)

AP - Stocks erased big losses to end mostly higher Monday ahead of a flurry of earnings and economic reports that could determine whether the bets investors made in the past month on a stabilizing economy will pay off.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 9:18 pm

The Dow Jones industrials' moves since Lehman fall (AP)

AP - How far the Dow Jones industrial average has fallen or advanced each trading day since Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection on Sept. 15. Since Lehman's fall, which touched off a paralysis of the credit markets and deepened the recession, the stock market has gone through an extended period of volatility that subsided during December but that has returned in 2009. The numbers are the closing levels for the Dow:
Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 9:18 pm

Presented By:

Source: Dealbreaker | 13 Apr 2009 | 9:17 pm

When Should You Go To B-School?

Not two years ago, Breakingviews will tell you that much. In case those of you graduating from business school less than two months from now didn't already have the shotguns in your mouths, BV would like to give you that extra little nudge in the right direction today. You've got no prospects, and you're not going to have any for quite some time. Plus, your competition is more experienced, more desperate, and more willing to work for a ten-spot and box of tissues with which to JO&C. But take heart!

But when, damn it, when? Class of '10 is probably fucked, how 'bout '12? '15? We need serious guesstimates here. Let's time this thing right.

Earlier: Let's Talk B-School: A Dealbreaker Reader Poll

Source: Dealbreaker | 13 Apr 2009 | 9:17 pm

The Obama Portfolio

Slow news day.

The Obama Portfolio (Since Inception): +21.33%

Earlier: The Obama Portfolio

Source: Dealbreaker | 13 Apr 2009 | 9:05 pm

GM's Expensive 'Surgery'

You may have noticed that in its story this morning about a possible "surgical" bankruptcy for GM, the NYT reported that this surgery wouldn't come for free.

The U.S. government might have to loan the automaker as much as $77 billion. That's right. GM has gotten $13.4 billion so far, but bankruptcy could require much more aid.

The additional loans are called "bridge loans" or Debtor In Posession (DIP) loans. And the idea is that the company, even in bankruptcy, needs extra gas in the tank so it can keep going long enough to become profitable again.

I just had a conversation with Jack Williams, the resident scholar at the American Bankruptcy Institute, and a professor at Georgia State University. Here's a quick Q&A.

Q: Has the government ever provided bridge loans like this?

A: It hasn't through bankruptcy directly. But it has through the Small Business Administration. It does that all the time. But you're looking at a major difference in scale.

Q: Does the size of the bridge loan surprise you? A few months ago, people were talking about much smaller numbers, maybe $30 billion.

A: It doesn't surprise me at all. I think what you're dealing with is not a failing enterprise. I think these companies have failed. You're resurrecting them. What you're attempting to do now is resurrect these companies. I think $30 billion would have been the right number in the fall of 2008, but things have gotten worse.

Q: Do you think bankruptcy is a good idea here?

It's something that probably should have been considered and done in October and November. But it's a smart move, and gives us the best chance of success of rehabilitating these companies.

The advantage is that in bankruptcy court you get to hit the reset button. You get to revisit all the relationships with dealers, suppliers, unions, banks, bondholders, stockholders.... you get to pay people in bankruptcy dollars.

Q: You mean, less than real dollars.

A: Yes, 20 cents on the dollar, 30 cents on the dollar, however it works out.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 8:56 pm

Circuit City seeks to sell brand, Web site (AP)

AP - Circuit City Stores Inc. hopes to sell its brand, trademarks and e-commerce business to Systemax Inc., the same company that purchased electronics retailer CompUSA's intellectual property when it closed in 2008.
Source: Yahoo! News: Business | 13 Apr 2009 | 7:54 pm

Smith Calls New Ballparks `Wonderful' for Baseball

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 7:46 pm

Thomas Weisel: Get Your Asses To The Office (PS WFC Sucks)

So, I realize that intolerance is a problem at all that jazz, but the below email is pretty global in its distaste for organized religion. And though it's sort of prickish, 'cause I'm sure you're all working as hard as you can, in spite of ourselves, we kind of dig it, in a tough love kind of way. Moving forward, we're going to suggest it be used as a form letter for anyone dealing with slacking employees. Swap out WFC for your bitch bank of choice (BAC, C, whatever you fancy. Ladies' choice).

From: [redacted]

Sent: Friday, April 10, 2009 10:38 AM

To: [redacted group]-Investment Banking

Everyone below the MD level --

We are an investment bank. Unless you are an orthodox something, please get into the office. We are getting paid minimum wage for a reason -- we are not making money, which is hard to do from home.

Join Wells Fargo and become a teller if you want to take bank holidays.

[redacted]

Managing Director

Investment Banking

Thomas Weisel

Source: Dealbreaker | 13 Apr 2009 | 7:34 pm

Blind Trust? I Don't THINK So.

Shouldn't these people have their fortunes locked in a poorly administered blind trust before accepting office?

Lawrence Summers' bullish economic sentiments helped send markets soaring at the end of last week. But even after assuming his role as the president's top economic adviser in January, Summers seemed far more skeptical that the markets would recover any time soon, as evidenced by the only metric that really counts--his own personal cash. Specifically, in 2008 through early 2009, Summers stashed most of his liquid assets in tax-free municipal bonds--between $5 million and $25 million worth--leaving himself relatively little exposure to the stock market, a Daily Beast analysis of his recently released financial-disclosure report reveals.

Of course, it is entertaining to pit Summers against Geithner, as The Beast happily proceeds to do, but we think we can be forgiven for thinking both of these two should have all their money locked in an emerging markets ETF by a 20something analyst at a foreign firm. That would, after all, be fitting, no?

What Do They Know That We Don't? [The Daily Beast]

Source: Dealbreaker | 13 Apr 2009 | 7:26 pm

Dry Wells?

Remember how Wells Fargo jumped 30% or so on pre-earnings guidance? Yeah, it made us cross eyed too. Well, about as expected, a number of commentators have pointed out that a good slug of their "profit" seems to be composed primarily of one time accounting dance steps.

Last week, Wells Fargo & Co (WFC: 19.50 -0.56%) pre-announced $3bn in expected profit and growth for the first quarter of 2009, along with growth in a closely-watched earnings ratio known as tangible common equity. The stock soared over 30 percent on the incomplete earnings news, with an official announcement due later this month. Some analysts have questioned the results, as both loan loss reserves and charge-offs came in unexpectedly low, helping the bank boost reported profits.

It appears, however, that as much as nearly one-third of the bank's first quarter earnings may be nothing more than the result of an accounting treatment; without such a move, tangible common equity would be 10 bps less than the 3.1 percent the Street expects.

We've had three or four analysts tell us that Wells has an increasingly worrying reputation for anything from poor communication to outright misstatement. Whatever the reality, it is very hard not to wonder why any bank would risk reporting record profits in the present environment. If you had any confidence left in accounting as a discipline, perhaps now is the time to shed it.

Wells Fargo Q1 Profits Packed with Accounting Gain [Housing Wire]

Earlier: Fill Your Wells

Source: Dealbreaker | 13 Apr 2009 | 7:17 pm

Confidential To Mike Morgan: We've Got What You Want Right Here

By now you've likely heard about blogger Mike Morgan, proprietor of Facts about Goldman Sachs, which can be found at www.goldmansachs666.com. The site was founded on March 26, 2009, in Morgan's words, as "an open forum for facts and discussion about what part Goldman Sachs and their executives played in the current Global Economic Crisis," which Goldman apparently does not like! The bank is currently attempting (unsuccessfully) to silence Mikey-boy, issuing a cease and desist, a request which has so far gone unmet. The brave young (or old, I have no idea) blogger has vowed to fight the power, and is holding a conference call Wednesday at 6PM to discuss "objectives and how you can help as a volunteer" (anonymous crotch shots of Blankfein to the tips line).

According to Morgan, "I've had advice from some of the best intellectual property lawyers, and I know exactly what I can and can't do. We're not going to back down from this." He added that if GS does figure out a way to shut him down, he has "a number of other domain names registered." But does he have goldmansucksthebigone.com? I think not. We're rooting for the li'l fella here, but in the event Lloyd successfully puts him in a sleeper hold, all we're saying is, make us an offer.

Source: Dealbreaker | 13 Apr 2009 | 6:49 pm

Pirate Reality TV

There is something so strangely undramatic about this and past piracy dramas. There are no eye patches, drinking grog or really anything very exciting going on here. Most of the time Navy Seals don't snipe pirates. And a lot of time, the whole thing just sounds like a mundane business deal: the pirates negotiate price, they have a spokesman, and they document the inventory for the "customer." This video is from a hijacking last year. The source tells Wired they make videos like this to show the owners the ship is still in good condition.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 6:49 pm

ICBC takes top slot for deposits

Industrial and Commercial Bank of China, the world's largest lender by market capitalisation, is now the biggest by deposits as well
Source: Financial Times - US homepage | 13 Apr 2009 | 6:40 pm

Eaton Cut to `Neutral' at UBS

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 6:26 pm

Madoff's Peeps. Literally.

Worth the ad: the Washington Post's Peeps Diorama contest. My heart's with the Madoff scene above. You can still vote in the people's choice poll.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 6:06 pm

Cloherty Sees Decrease in Overseas Buyers for Treasuries

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 5:39 pm

New e-readers get a big push

E-readers allow users to read books digitally, but sales of the hand-held devices have grown slowly. That may be changing as Amazon and Sony, along with some well-funded start-ups, push a new generation of e-readers. Mitchell Hartman reports.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

Broadcasters cash in on political ads

Chances are that when you turn on the TV, you'll end up seeing some sort of political advertising. Kai Ryssdal speaks with Politico's Kenneth Vogel about how broadcasters make a lot of money from these commercials.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

Fox, Regal don't see eye to eye on 3-D

Some people think the future of the movie industry is in 3-D films. But a battle is brewing between Fox and theater chain Regal Entertainment Group over who will pick up the tab for 3-D glasses. Jill Barshay reports.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

On the road again with Tess and Amy

Marketplace's Tess Vigeland and Amy Scott are back traveling the country, seeing how people they met six months ago are holding up in this recession. They talk with Kai Ryssdal from Salt Lake City and Charlotte, N.C.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

Swiping that plastic can be fantastic

Credit cards have gotten a bad rap, says commentator Meghan Daum, who thinks plastic can actually be pretty great, if needed.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

Thai riots spur Asian economy concerns

Asian stock markets have done well the past few weeks, but political instability in Thailand has highlighted big concerns about the region's emerging economies. Caitlan Carroll reports.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

How GM bankruptcy would hit investors

As GM considers bankruptcy, the company's stakeholders are worrying about losses on their investments. Some bondholders may see returns on their money, but others could be arguing over pennies. Jeremy Hobson reports.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

How are the banks now doing so well?

Wells Fargo recently announced record first-quarter profits, which sent bank stocks rising. But how is the banking industry's outlook improving while the rest of the economy looks so bad? Bob Moon reports.
Source: Marketplace | 13 Apr 2009 | 5:37 pm

Tilman Says Stress Test Determines Bank's Capital Needs

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 5:33 pm

Stimulus Savings

Shana writes:

I saw this "Stimulus Savings" sign in a computer repair store in Overland Park, Kansas. What will happen to the salaries of the employees if their work is only worth 80% of what it once was? Don't worry - the pay-day loans place a couple doors down is hiring. Oh boy...

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 4:53 pm

Wallison Says Capital Will Migrate to Bailed-Out Firms

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 4:47 pm

Levitt Calls Financial Services Conglomerates `Wrongheaded'

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 4:08 pm

GM Bankruptcy June 1?

GM is getting closer to filing for bankruptcy, according to this article in the New York Times. The bankruptcy filing could come as early as June 1 unless GM can come to an agreement with their bond holders and re-negotiate their loan terms. According to the report:

The preparations are aimed at assuring a G.M. bankruptcy filing is ready should the company be unable to reach agreement with bondholders to exchange roughly $28 billion in debt into equity in G.M. and with the United Automobile Workers union, which has balked at granting concessions without sacrifices from bondholders.

One way to deal with a bankrupt GM is to borrow the model used by the Treasury in their bank recovery plan. GM would create a "good" company and "bad" company. The "good" GM would reemerge from bankruptcy as a leaner, meaner machine that might stand a chance of competing in the global market. The "bad" GM would be lumbered with the "toxic" parts of GM including health care costs, bondholder debt and the loss-making factories and brands. The cost to the federal government of the "good" GM is estimated to be $7 billion.

But the "bad" GM would cost the federal government -- $70 billion. That brings the total bill to $78 billion, on top of the $16 billion in federal money loaned to GM earlier this year.

This week there could be more bad news for the car industry. Car sales have collapsed -- they fell more than 20 percent during the past year -- and the next retail sales report is released by the U.S. Census Bureau on Wednesday.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 4:03 pm

General Motors stock skids on bankruptcy reports (AFP)

AFP - General Motors skidded on the stock market Monday after reports that the government was directing the troubled auto giant to lay the groundwork for a June 1 bankruptcy filing.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 3:38 pm

She Bought Stock

This one landed in our inbox as a Green Shoots item, and maybe it qualifies -- in the subcategory of Hope Springs Eternal. Alison Holmes writes:

Having never bought an individual stock in my life, we just bought about 200 shares of Citigroup and 100 of B of A about 2 weeks ago. Figure they can't nationalize them both at once.

For what two weeks' time is ever worth, her bet's looking good.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 3:23 pm

Other Than Layoffs

Economists are debating, still, whether it's better for companies in trouble to lay off workers or put them on furloughs. Meanwhile, you're living it. And the news keeps on. From the Wall Street Journal:

Many [employers] also are experimenting with furloughs, hoping that by sharing the pain of the downturn more broadly among staffers, they will keep talented employees, win additional loyalty and better position themselves for the recovery. Of 245 U.S. companies surveyed in February by consulting firm Watson Wyatt Worldwide Inc., 17% said they are ordering mandatory furloughs, while 19% said they are offering workers voluntary furloughs. A much larger group, 65%, said they had cut jobs or plan to cut jobs.

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Source: NPR Blogs: Planet Money | 13 Apr 2009 | 2:41 pm

Kass Sees More `Populist' U.S. Tax Initiatives

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 2:12 pm

Faber Sees `Negative Impact' of Unrest on Thailand's Tourism

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 1:49 pm

Euler Hermes's North Sees U.S. Mortgage Rates at 4.5%

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 1:48 pm

Katz Sees U.S. Stocks Meaningfully Higher in 6 to 18 Months

Source: Bloomberg - All Podcasts | 13 Apr 2009 | 1:47 pm