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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 | 17 Apr 2009 | 12:01 pm GE profit tops forecast, powered by energy unitBOSTON (Reuters) - General Electric Co posted better-than-expected quarterly profit, as a strong performance at its large energy operation offset declines at the GE Capital finance and NBC Universal units.Source: Reuters: Business News | 17 Apr 2009 | 12:01 pm Stock futures mostly higher on Citi, GE earnings (AP)
Source: Yahoo! News: Stock Markets News | 17 Apr 2009 | 11:56 am Citi delivers profit surprise - kind ofCitigroup surprised Wall Street Friday as the company delivered its first profit in more than a year, helped by strength within its investment banking division.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 11:55 am Sony Ericsson to cut 2,000 jobs after first-quarter lossSony Ericsson Mobile Communications on Friday says it’s going to cut 2,000 jobs following a first quarter in which the maker of mobile phones lost 293 million euros ($386 million).Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:55 am Stocks set for mixed openU.S. stock futures were mixed on Friday after Citigroup and General Electric reported better-than-expected earnings.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 11:54 am GE's financial arm leads to earnings slideGeneral Electric, the industrial bellwether, posted a 40 per cent year on year drop in first quarter earnings per share, beating analysts' expectations of an even steeper declineSource: Financial Times - US homepage | 17 Apr 2009 | 11:54 am GE's profit dragged by finance armGeneral Electric Co. posted a first-quarter profit Friday that fell substantially from year-ago results, dragged down by weak earnings at its embattled finance division, but the results still beat Wall Street's expectations.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 11:53 am Citigroup posts smaller loss; shares surgeNEW YORK (Reuters) - Citigroup Inc said on Friday that cost-cutting efforts and improved investment banking and trading results led to a substantially smaller first-quarter loss for shareholders, despite a big increase in credit costs from consumer banking and credit cards.Source: Reuters: Business News | 17 Apr 2009 | 11:52 am Currencies: Traders bid dollar higher as European central bankers speakRemarks by two of Europe’s top central bankers have the effect of helping lift the dollar while at the same time pressuring the euro and the Swiss franc.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:52 am Top 10 Analyst Upgrades & Downgrades (ABC, BWA, DRYS, FIS, ITW, JPM, MHP, NOK, SOHU, ZUMZ)There are not so many brokerage calls this morning for it being earnings season, but these are the top 10 analyst calls of upgrades and downgrades from Wall Street we have seen early this Friday morning: AmerisourceBergen (ABC) Raised to Buy at Deutsche Bank. Borg Warner (BWA) Cut to Market Perform at Wachovia. DryShips (DRYS) Raised to Outperfom [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 11:48 am Citigroup posts smaller loss; shares surge (Reuters)
Source: Yahoo! News: Business | 17 Apr 2009 | 11:45 am London Markets: London shares advance after a lackluster startBritish shares shake off a lackluster start on Friday to move higher, after stronger-than-expected results from Citigroup and General Electric boosted sentiment.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:45 am Tempest in a Tea PartySource: Business and financial news - CNNMoney.com | 17 Apr 2009 | 11:39 am Citi records first profit in six quartersThe US financial services group reported its first profit in six quarters, joining rivals in benefiting from a rise in trading activity and a change in fair-value accounting rulesSource: Financial Times - US homepage | 17 Apr 2009 | 11:37 am Markets cheer Citigroup earningsCitigroup reports a near $1bn loss for the first three months of 2009, but strong earnings mark its best quarter since late 2007.Source: BBC News | Business | World Edition | 17 Apr 2009 | 11:35 am Stock futures flat after Citigroup, GE results (Reuters)
Source: Yahoo! News: Stock Markets News | 17 Apr 2009 | 11:33 am Stock futures flat after Citigroup, GE resultsNEW YORK (Reuters) - Stock index futures were flat after shares of Citigroup and General Electric posted better-than-expected quarterly results, providing further evidence that the severe U.S, economic downturn could be abating.Source: Reuters: Business News | 17 Apr 2009 | 11:33 am Stock futures flat after Citigroup, GE results (Reuters)
Source: Yahoo! News: Business | 17 Apr 2009 | 11:33 am Celebrities take over TwitterSource: Business and financial news - CNNMoney.com | 17 Apr 2009 | 11:32 am Citi Keeps Pulling Rabbits From The Hat (C, MS)Citigroup, Inc. (NYSE: C) is so far a winner this morning after a “more than acceptable” earnings report. The troubled bank and financial supermarket posted a net profit at $1.59 billion on items, but the net loss for shareholders came to -$0.18 EPS after reflecting the conversion of $12.5 billion in convertible preferred stock. Revenues [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 11:30 am European stocks higher after Citigroup earnings (AP)
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News: Stock Markets News | 17 Apr 2009 | 11:27 am Citigroup beats forecasts but writedowns mountCitigroup, once America's largest bank, today reported a better-than-expected $1.6 billion ($£1.08 billion) profit in the first quarter despite notching up a further $10 billion charge relating to the credit crunch.$Source: Latest Business News from Times Online | 17 Apr 2009 | 11:26 am Gem producer Botswana cuts outputFalling demand for precious stones forces Botswana, a major diamond producer, to cut output by more than half this year.Source: BBC News | Business | World Edition | 17 Apr 2009 | 11:23 am General Electric posts 35% drop in quarterly profitNEW YORK (MarketWatch) -- General Electric Co. said Friday its first-quarter profit fell 35% on a sharp drop in financial-service related revenue.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:19 am Europe Markets: Shares in Europe move higher, banks pace advanceEuropean shares ending a strong week on steady note, as investors eyed a mixed set of earnings from companies such as Carrefour and mobile handset maker Sony Ericsson.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:18 am Beijing signals shift aimed at tightening up on banks' lendingAs a senior Chinese banking regulator calls for “scientifically controlling” the pace of growth in new loans, a key observer of the mainland's economy sees the first official sign that regulators will likely take action to cool lending in coming months.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:17 am Bid move boosts wind farm companyA takeover approach sends shares in wind farm company Renewable Energy Generation soaring by almost 50%.Source: BBC News | Business | World Edition | 17 Apr 2009 | 11:15 am U.S., Fiat to name Chrysler board on alliance: memoDETROIT (Reuters) - U.S. automaker Chrysler, already operating under government emergency aid, would cede control of its board and ultimately senior leadership if it completes a planned alliance with Italy's Fiat SpA.Source: Reuters: Business News | 17 Apr 2009 | 11:15 am Mattel loss just misses view; more sales pain seenNEW YORK (Reuters) - Mattel Inc, the world's biggest toy company, posted a slightly wider-than-expected quarterly loss on Friday, hurt by the effect of a stronger dollar and inventory cuts at retailers.Source: Reuters: Business News | 17 Apr 2009 | 11:14 am Mattel loss just misses view; more sales pain seen (Reuters)Reuters - Mattel Inc , the world's biggest toy company, posted a slightly wider-than-expected quarterly loss on Friday, hurt by the effect of a stronger dollar and inventory cuts at retailers.Source: Yahoo! News: Business | 17 Apr 2009 | 11:14 am GE profit tops forecast, energy is key lift (Reuters)Reuters - General Electric Co reported a 36 percent drop in quarterly profit, but topped Wall Street's expectations on the back of its large energy operation, which makes electricity-producing turbines.Source: Yahoo! News: Business | 17 Apr 2009 | 11:09 am Citigroup loses 18 cents a share, beating viewNEW YORK (MarketWatch) - Citigroup, once the largest U.S. bank, reported better-than-expected first-quarter results -- a loss available to common-share holders of 18 cents a share -- on strength in the institutional-clients group plus tight expense controls, though the group continues to take charges to reserve for consumer defaults.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:09 am Euro falls after ECB chief's remarksThe euro sank against the dollar on Friday after European Central Bank president Jean-Claude Trichet hinted at further measures to boost the eurozone economies, dealers said. The market...Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:08 am Indications: U.S. stock futures mostly up after Citi, GE resultsU.S. stock futures mostly higher on Friday, as General Electric and Citigroup both beat analyst estimates on their first-quarter results.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:07 am Toshiba, Ericcson to cut 5,900 jobsTwo major electronics companies announced thousands of job cuts Friday as the global economic downturn ripples through the labor market.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 11:06 am GE profit down 35%, but tops forecastsUS conglomerate General Electric on Friday reported a 35 percent drop in first-quarter profit to 2.89 billion dollars, but beat expectations as its financial arm remained profitable.Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:05 am GE profit down 36 percentBOSTON (Reuters) - General Electric Co reported a 36 percent drop in quarterly profit, as a global recession pounded its hefty finance arm, but the company said the order backlog at its...Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:03 am Oil prices fall further on weak outlookWorld oil prices drifted down on Friday as the market focus remained on weak energy demand and high US crude stocks in a slowing global economy, traders said. London's Brent North Sea...Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:03 am Pirate Bay founders sent to jailThe founders of Pirate Bay, the world's most famous file-sharing site, are jailed by a Swedish court on copyright charges.Source: BBC News | Business | World Edition | 17 Apr 2009 | 11:02 am Gordon Brown says embracing digital revolution key to Britain's recoveryPrime Minister said investment in digital can help pull the UK out of the recession and make it a leader in a 'new golden age' of technology.Source: Telegraph Finance | 17 Apr 2009 | 11:00 am Citigroup posts loss, delays exchange offerNEW YORK (Reuters) - Citigroup Inc posted a first-quarter loss on Friday, reflecting a large amount of credit losses and the accounting for preferred stock.Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:00 am Stock Preacher Issues Technical Trade Alerts on: HOG, BBT, C, GEVANCOUVER, April 17 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:00 am Commodities Corner: Platinum and palladium markets find their own stimulusThe platinum and palladium markets have found their own stimulus plan -- in the form of the potential launch of the first U.S. exchange-traded funds physically backed by the precious metals.Source: MarketWatch.com - Top Stories | 17 Apr 2009 | 11:00 am Stock Preacher Issues Technical Trade Alerts on: GOOG, IBM, JPM, NOKVANCOUVER, April 17 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:00 am A. O. Smith Reports First Quarter Earnings of $8.7 Million, $.29 Per Share; Modifies 2009 Guidance to $1.80 and $2.10 Per ShareMILWAUKEE, April 17 /PRNewswire-FirstCall/ -- Citing a substantial decline in its end market demand, A. O. Smith Corporation (NYSE: AOS) today announced first quarter earnings ofSource: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 11:00 am Lotte bows out of final bid for InBev's OB -sourceHONG KONG, April 17 (Reuters) - South Korean retail giant Lotte Group will not submit a final offer for Oriental Brewery (OB), a source said on Friday, opening the way for a private equity buyer for the...Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 10:59 am VW may have ousted Toyota as world leader in Q1 (Reuters)Reuters - Volkswagen may have become the world's top-selling automaker in the first quarter as government incentives have fueled demand in its major markets, overtaking industry giant Toyota (7203.T).Source: Yahoo! News: Business | 17 Apr 2009 | 10:55 am VW may have ousted Toyota as world leader in Q1TOKYO/FRANKFURT (Reuters) - Volkswagen may have become the world's top-selling automaker in the first quarter as government incentives have fueled demand in its major markets, overtaking industry giant Toyota.Source: Reuters: Business News | 17 Apr 2009 | 10:55 am Sony Ericsson posts heavy Q1 loss, slashes jobsSTOCKHOLM (Reuters) - Mobile phone maker Sony Ericsson said on Friday it plans to cut one in five jobs this year in its battle to return to profit as a sluggish market brought a hefty first-quarter loss, as expected.Source: Reuters: Business News | 17 Apr 2009 | 10:53 am Obama needs a new car czarWhy did the Obama administration name investment banker Steven Rattner as the head of auto task force knowing that New York prosecutors were investigating whether he had a role in a kickback scheme at New York state’s pension fund? To be bure, Rattner, co-founder of the Quadrangle Group, and the firm have not been charged with [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 10:53 am Pirate Bay verdict: reactionThe founders of filesharing website The Pirate Bay have been sentenced to a year in jail in Sweden for breaking copyright laws by helping millions of users download music movies and computer games for free. Here is a roundup of reactions to the verdict.Source: Telegraph Finance | 17 Apr 2009 | 10:50 am SNAPSHOT - Financial Crisis - 1047 GMT- ECB'S Trichet, IMF's Strauss-Kahn urge action for recovery in 2010Source: RSS feed - channel BNewsBusiness | 17 Apr 2009 | 10:48 am Pirate BayWhat the verdict means for music and moviesSource: BBC News | Business | World Edition | 17 Apr 2009 | 10:47 am Report: Auto czar being probedSteven Rattner, the head of Obama's auto task force, is part of a probe into an alleged kickback scheme at New York's state pension fund, the Wall Street Journal reported Thursday.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 10:46 am GE (GE) Confounds It CriticsAs usual, the GE (GE) quarterly report was a massive compilations of numbers on its various divisions and their performance compared to last year. The only number Wall St. cared about what the one for GE Capital which might have become a sink hole of bad assets and tremendous write-offs, not entirely unlike those experienced by [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 10:45 am Mattel posts wider loss in 1st quarter (AP)AP - Mattel Inc., the largest U.S. toymaker, said Friday weak sales overseas and cautious retailer orders lead to a wider first-quarter loss that just missed analyst expectations.Source: Yahoo! News: Business | 17 Apr 2009 | 10:42 am The next real estate time bomb?Bankruptcy is coming to the food court. And that's got to make you wonder if the commercial real estate market is a disaster waiting to happen.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 10:37 am New bosses at Chrysler if Fiat deal happensRead full story for latest details.Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 10:19 am Bank's Barker backs 'risky' 100% mortgagesA member of the Bank of England's rate-setting committee said that mortgages which leave buyers with an immediate risk of negative equity should not be banned and that bank demands for big deposits from homeowners may have been "overdone."Source: Latest Business News from Times Online | 17 Apr 2009 | 10:10 am A Minority Report Challenges US Economic ImprovementThe President says he sees a faint light at the end of the tunnel. So does the Treasury Secretary and head of the Fed. They are joined by Lawrence Summers, who, not so long ago, was kicked out as president of Harvard for “conduct not becoming of an officer” They are being challenged by the head [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 10:09 am How the crisis hurt McGraw-HillOne warm day recently, a double-decker tourist bus barreled past Harold "Terry" McGraw III as he walked in front of the Manhattan skyscraper that is the world headquarters of the McGraw-Hill Cos. McGraw, the fourth generation of his family to run the company, heard the tour guide say, "And now we're coming up to the McGraw-Hill building."Source: Business and financial news - CNNMoney.com | 17 Apr 2009 | 10:08 am Pirate Bay founders sentenced to a year in jail and ordered to pay £2.5 millionFour men who founded the popular file-sharing website Pirate Bay were today sentenced to a year in jail and ordered to pay £2.5 million in damages for helping internet users download protected music, movies and computer games.Source: Latest Business News from Times Online | 17 Apr 2009 | 10:08 am Pirate Bay four jailed for breaking copyright in Swedish filesharing trialThe founders of filesharing website The Pirate Bay have been jailed for a year for breaking copyright laws in a case which could be a first step towards ending illegal downloading.Source: Telegraph Finance | 17 Apr 2009 | 9:56 am VW No.1 Car Company Worldwide? An Industry Where It Does Not MatterVW may have passed Toyota (TM) as the world’s No.1 car company just as Toyota passed GM (GM) a year ago. The companies all operate in an industry where being on the top of the pile does not matter much. It is probable that each of these firms losses money on the great majority of [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 9:49 am Tax rise threatens UK's regional airportsA rise in Air Passenger Duty in next week's Budget could put smaller airports at risk reports Charles StarmerSmith.Source: Telegraph Finance | 17 Apr 2009 | 9:40 am Cathay Pacific cuts flights and asks staff to take unpaid leaveCathay Pacific one Asia's biggest airlines is to cut flights and ask all 17000 staff to take unpaid leave to cut costs after firstquarter revenue fell 22pc.Source: Telegraph Finance | 17 Apr 2009 | 9:34 am Weak demand hits Air China profitNational flag carrier Air China reports an annual loss of $1.4bn after being hit by weaker demand and higher fuel costs.Source: BBC News | Business | World Edition | 17 Apr 2009 | 9:31 am European stocks steady ahead of Citigroup results (AFP)
Source: Yahoo! News: Stock Markets News | 17 Apr 2009 | 9:27 am Regulator accused of complacencyA former supervisor at the Financial Services Authority accuses the regulator of complacency in its dealings with building societies.Source: BBC News | Business | World Edition | 17 Apr 2009 | 9:21 am The Battle For What’s Left Of GM Gets MeanerThe engagement has become hand-to-hand as the fight to see who will make it out of the rubble of the GM (GM) restructuring comes to a close. The most recent development is that the car company’s retired workers are blaming the firm’s creditors for dragging their feet and pushing GM closer to bankruptcy. On the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 9:17 am Big investors buy into stock rally: State StLONDON (Reuters) - Institutional investors are participating in a broad-based recovery in equities with the United States leading the way and the euro zone lagging, State Street said on Friday.Source: Reuters: Business News | 17 Apr 2009 | 9:12 am Google (GOOG): The Economy In A Tea CupWhen Google (GOOG) reported earnings, earnings which were extraordinary during a poor economic period, for the first quarter, the company’s chatty CEO Eric Schmidt said “Google had a good quarter given the depth of the recession — while revenues were down quarter over quarter, they grew 6% year over year thanks to continued strong query [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 9:11 am Index futures point to lower Wall St open (Reuters)Reuters - Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes were down 0.4-0.9 percent Friday, pointing to a lower start on Wall Street.Source: Yahoo! News: Stock Markets News | 17 Apr 2009 | 9:03 am Weekly Apple (AAPL) Headline Roundup: April 17This was the week analysts stumbled over each other to raise their price targets on Apple prior to next Wednesday’s earnings report. Will this create a “sell the news” effect? Here are the week’s top stories, aggregated from 24/7 Wall St. partner Apple Investor News: • Goldman Sachs analyst David Bailey said Apple’s FY Q2 would come [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 8:59 am Nobel Prize winner Joseph Stiglitz says Wall St ties threaten bankrescue planNobel Prizewinning economist Joseph Stiglitz has warned the US bankrescue plan is likely to fail as its architects are either in the "pocket of the banks or incompetent".Source: Telegraph Finance | 17 Apr 2009 | 8:52 am Sony Ericsson cuts a further 2000 jobs as losses riseSony Ericsson the mobile phone maker is to cut a further 2000 jobs after it swung to a loss of €293m in the first three months of the year.Source: Telegraph Finance | 17 Apr 2009 | 8:51 am Toshiba to cut 3,900 more postsJapanese electronics giant Toshiba is to cut a further 3,900 temporary jobs to cope with the global downturn.Source: BBC News | Business | World Edition | 17 Apr 2009 | 8:09 am Whistleblower attacks FSA's indifference to risky loans at building societiesBritain's top financial regulator has been accused by a former supervisor of "indifference" and "wilful ignorance" in regulating building societies as they moved into risky loans in the run up to the credit crisis.Source: Telegraph Finance | 17 Apr 2009 | 8:01 am Media Digest 4/17/2009 Reuters, WSJ, NYTimes, FT, BloombergAccording to Reuters, banks may be hard hit by the bankruptcy of General Growth (GGP) and future commercial real estate defaults. Reuters reports that VW may overtake Toyota (TM) as the No.1 car company in the world in Q1. Reuters writes that Google (GOOG) profits beat expectations. Reuters reports that Fed official see signs of improvement in the economy. Reuters [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 17 Apr 2009 | 7:57 am FTSE holds above 4,000 levelLondon equities held steady on Friday, with a smattering of retail stocks joining banks at the top of the market, which was held back from overall gains by struggling miners. The FTSE 100 was flat at...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:57 am NZ currency: Dollar ends week testing downsideThe New Zealand dollar was testing support at lower levels today as the week drew to a close. The NZ dollar was at US57.10c at 5pm, not far above the US56.80c it dropped to during a bumpy Thursday night. On Tuesday it was worth...Source: New Zealand Herald - Business | 17 Apr 2009 | 7:49 am NZ stocks: Market posts healthy gainsThe New Zealand share market was decidedly perky today, leading brokers to speculate new money is flowing into the market. The market is nearly back to the level it started the year after suffering sustained losses during the profit...Source: New Zealand Herald - Business | 17 Apr 2009 | 7:46 am Germany starts bid to nationalise Hypo Real Estate (AFP)
Source: Yahoo! News: Business | 17 Apr 2009 | 7:25 am Ashton Kutcher given real fight by Brit James Cox in race for 1m Twitter followersThe actor was given a close run by James Cox a 25yearold from London to be the first to get 1m followers on the microblogging website.Source: Telegraph Finance | 17 Apr 2009 | 7:24 am Sony Ericsson to axe a further 2,000 jobsSony Ericsson said today it would slash a further 2,000 jobs this year after it posted a pre-tax loss of €358 million (£315 million) in the first three months of 2009.Source: Latest Business News from Times Online | 17 Apr 2009 | 7:15 am Sony Ericsson to cut 2,000 jobsMobile phone maker Sony Ericsson announces new job losses as it reveals a 358m-euro loss for the first quarter of 2009.Source: BBC News | Business | World Edition | 17 Apr 2009 | 7:05 am AIG sells US auto division to Zurich for $2bn$American International Group (AIG) has agreed to sell its US car insurance business to Zurich Financial Services for $1.9 billion in the largest disposal by the troubled insurer since its rescue by the US Government last year.$Source: Latest Business News from Times Online | 17 Apr 2009 | 7:03 am Glendale Galleria owner files for Chapter 11General Growth Properties, which owns or manages more than 200 malls in 44 states, owes $27 billion. The firm says it will continue operating all of its shopping centers during the bankruptcy process.Saddled with billions in debt, shopping mall giant General Growth Properties Inc. sought protection from its creditors in Bankruptcy Court on Thursday, marking the largest Chapter 11 filing for a real estate company in U.S. history. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am Housing starts plunge in MarchThe West sees a 67% drop in the groundbreaking of new homes. Nationwide, starts are down by nearly half. Groundbreakings...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Southwest sees future turbulenceThe airline reports its third straight quarterly loss and predicts another year-over-year decline in revenue in the current quarter.Southwest Airlines Co., still reeling from a dive in air travel, held out hope Thursday that the plunge may have leveled off. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am Zac Efron and '17 Again' expected to rule box officeHis new film hits the big screen a week after that of his fellow Disney Channel star Miley Cyrus. One Disney Channel...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Google's growth slows in first quarter amid recessionThe Web search giant posts its first-ever quarter-to-quarter drop in sales, although revenue is up 6% over the same period last year. Its 9% increase in profit is aided by cost-cutting.The nation's economic ills have infected even the Internet moneymaking juggernaut Google Inc., which Thursday reported slowing revenue growth and an increase in profit aided by sharp cost-cutting. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am YouTube unveils new section for TV episodes and feature filmsThe website known for its user-generated videos will showcase Hollywood content in an effort to boost revenue and compete with the growing popularity of Hulu. ...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Twitter showdown: Will Ashton Kutcher or CNN win?The actor and the cable news network are vying to be the first to have 1 million users following their tweets. The winner will donate 10,000 mosquito nets in time for World Malaria Day on April 25. ...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Bailout money a 'scarlet letter,' JPMorgan CEO Jamie Dimon saysDimon, whose bank announced a $2.1-billion first-quarter profit, says he regrets having accepted $25 billion in federal aid. However, the bank still plans to use a separate U.S. loan program. ...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am AIG to sell 21st Century to Farmers InsuranceFarmers Insurance agrees to pay $1.9 billion to troubled AIG for 21st Century. The deal would make Farmers the third-largest auto and home insurer in the U.S.Two of Southern California's biggest insurance companies are joining forces to create the state's largest auto insurer, at the same time throwing a financial lifeline to troubled insurance giant American International Group Inc. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am 2010 Camaro SS: Subtle it's notThe Camaro SS's 6.2-liter V8 delivers raw power and its retro styling is spot on.Despite some published reports, the 2010 Camaro SS is not really what you'd call a sports car, unless you tend to shave with a chain saw or sign your name with a piece of burning timber or make scrambled eggs by dropping a piano on a chicken. The consonant quality of this car, from the moment you turn the key to the moment you gratefully leave it in the chiropractor's parking lot, is a wanton and cheerful disregard for finesse and delicacy. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am Rocked by recession, music festivals are rolling overHard times are forcing some events to cancel or go on hiatus. Coachella seems to be humming right along.The shaky economy is rattling the summer music festival. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am AIG to sell 21st Century to Farmers InsuranceFarmers Insurance agrees to pay $1.9 billion to troubled AIG for 21st Century. The deal would make Farmers the third-largest auto and home insurer in the U.S. ...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am 2010 Camaro SS: Subtle it's notThe Camaro SS's 6.2-liter V8 delivers raw power and its retro styling is spot on. Despite some published reports,...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Zac Efron and '17 Again' expected to rule box officeHis new film hits the big screen a week after that of his fellow Disney Channel star Miley Cyrus.One Disney Channel star is gunning to take down another at the box office this weekend. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am Glendale Galleria owner files for Chapter 11General Growth Properties, which owns or manages more than 200 malls in 44 states, owes $27 billion. The firm says it will continue operating all of its shopping centers during the bankruptcy process...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Twitter showdown: Will Ashton Kutcher or CNN win?The actor and the cable news network are vying to be the first to have 1 million users following their tweets. The winner will donate 10,000 mosquito nets in time for World Malaria Day on April 25.Ashton Kutcher is poised to single-handedly conquer CNN. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am YouTube unveils new section for TV episodes and feature filmsThe website known for its user-generated videos will showcase Hollywood content in an effort to boost revenue and compete with the growing popularity of Hulu.Once considered the scourge of traditional entertainment, YouTube is making an aggressive new play to earn friends in Hollywood. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am Struggling AIG close to selling 21st Century, source saysFarmers Insurance parent may pay up to $2 billion for the Woodland Hills unit. Bailed-out AIG is close to a deal...Source: RSS feed - channel BNPaperBusiness | 17 Apr 2009 | 7:00 am Tech, financial stocks push market higherOptimistic investors send the Dow soaring 95.81 points to 8,125.43, encouraged by a mix of earnings and economic reports that suggest the bruised economy is starting to recover.Stock indexes climbed Thursday to their highest levels in more than two months as a mix of earnings and economic reports helped investors grow more confident that the bruised economy is starting to heal. Source: L.A. Times - Business | 17 Apr 2009 | 7:00 am Worst of recession 'behind us'The worst of the recession may be over, according to the newest member of the Bank of England's Monetary Policy Committee.Source: BBC News | Business | World Edition | 17 Apr 2009 | 6:49 am Budget 2009: Darling and Brown won't want to slam on the spending brakesThe UK's Budget out next week is likely to disappoint.Source: Telegraph Finance | 17 Apr 2009 | 5:43 am Temuka cheese factory closure confirmedTwenty-three Temuka cheese workers face either redundancy or relocation to Christchurch after their employer today confirmed the closure of the South Canterbury factory. Dairyworks chairman Graham Heenan announced to staff this...Source: New Zealand Herald - Business | 17 Apr 2009 | 5:28 am Golfing for GeeksEver spent an afternoon at the driving range hitting microchip-embedded golf balls that can be tracked on a screen right next to your tee? Ever used a GPS-enabled cart out on the course to calculate your ball's distance to the next green? Ever lost a ball, then whipped on special high-tech glasses that filter out foliage? Note to players still carrying paper scorecards: Golf has gone over to the geek side. The number of devices and equipment submitted for approval by the U.S. Golf Association has more than quintupled from 20 years ago, to around 2,700. (More than 5,000 patents have been taken out on clubs alone since 1976.) The golf-gear bounty includes GPS systems that can track scores, calculate yardage and display a course's hard-to-see hazards. Retailers use computerized "launch monitors" to help match players with properly fitting new clubs. And enthusiasts can drop anywhere from $300 to six figures for fancy infrared golf simulators that bring their game indoors. To be sure, in this economy even the most enthusiastic duffers are going to balk at a lot of this. After all, the golf industry has tried before to dazzle players with everything from roller putters to bionic gloves -- many of which have flopped. But with sales down 5 percent last year and more pain on the horizon, the $3 billion golf-equipment industry is hoping high-tech gear will help keep business in swing. The question for the weekend warrior is obvious: Which new toys make sense? Course InformationAny golfer who has played the eighth hole at Pebble Beach, with its blind, uphill tee shot and fog-shrouded "cliffs of doom," knows the difficulty of gauging course distances. Enter the handheld GPS unit, which lets you download aerial, real-time views of tens of thousands of courses and calculate the distance between your ball and the next green -- or that hidden bunker. Top models like SkyCaddie, GolfLogix and Sonocaddie run between $180 and $400, plus annual subscription fees of up to $50. Most offer the 3-D course images via satellite (Sonocaddie pings as many as 12, depending on the day's cloud cover), while one firm, SkyGolf, sends experts to walk the courses with skilled golfers and surveying equipment. Problem is, most GPS gizmos can be off by as much as 10 yards. The $400 Sonocaddie V300, for example, claims to be accurate 90 percent of the time -- within a 7-yard radius. "That's probably as accurate as anyone can claim to be," says Jim Dennesen, president of Sonocaddie's distributor, Dennco. Still, experts say they're the best option out there. Handhelds can almost always get closer to the ball than their cart-mounted GPS cousins, while the more accurate laser range finders can't "see" past the next hill or bank of trees. And the reality? Few nonpros can calibrate their swing to within 10 yards anyway. Club FittingIn the eternal quest for a lower handicap, many players shell out several hundred to several thousand dollars for the latest "weaponry" of the game: a new set of clubs. So it's no wonder that more count on high-tech club fitting to insure the right match. In the past, club salesmen used "measurements" like scuff marks on black electrical tape to see whether a club was long enough -- that is, if they watched a customer's swing at all. No longer. Retailers are increasingly using state-of-the-art launch monitors that use software to analyze your swing -- its speed, backspin and the angle at which the club face strikes the ball. Club fitters then interpret the data to find clubs with not only the right length but also the proper grip and shaft flex. A 30-minute consult can run as much as $300; some stores credit it toward your club purchase, while others (like the Golfsmith chain) do it for free. To avoid an expensive mistake, says Terry McAndrew, publisher of Web Street Golf Report, request a fitter trained by a manufacturer or through a group like the Association of Golf Clubfitting Professionals. SimulatorsFor golfers who can't wait for good weather to get their fix, video games like PGA Tour for the Nintendo Wii offer the simplest way to score some swing time, if not the suntan. For a more wonky in-home swing analysis, simulators like the OptiShot Infrared Golf Simulator ($400) and P3ProSwing Sport ($600) work like those store setups; hook them to your TV or computer, swing over a small pad, and up to 65 built-in sensors will scrutinize the results. For the biggest screens and fanciest graphics -- think you, on the fairway at St. Andrew's -- deluxe room-size setups ($12,000 and up) let you thwack a ball against a special screen and typically use a high-speed camera and home-theater-quality projector. Just be sure to budget for a tape measure. Some consumers say they've felt "really cramped" when swinging, while others have nearly put a hole in their ceiling. Too much light can also hurt a player's score: Dancin' Dogg Golf, which makes OptiShot, warns of inaccurate or "nonsensical swing results" if there's too much sun, incandescent or halogen light. (Hint: Use compact fluorescents.) The real solution? Get back out on the course. 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 | 17 Apr 2009 | 4:00 am A Road Map of Japan's WoesPut away the crystal ball, and forget all that talk about this economy being uncharted territory. U.S. investors have a rare window into a few possible outcomes for today’s recession. That’s because our current situation bears a striking resemblance to Japan’s “lost decade,” the economic stagnation that crippled the nation through the 1990s. Even President Obama warned of a “negative spiral” that could lead to a repeat of the dire conditions. But there’s a silver lining to Japan’s story—once the government implemented its toughest measures, the stock market hit bottom, then rallied 150 percent in the next four years. Could that happen here? We canvassed money managers, economists and academics for an investor’s road map in the event the U.S. mimics Japan further. Here’s what to watch for. Brace yourself. Wait for the market to fallThe 1990s ushered in an era of thriftiness that Japan still hasn’t shaken. Americans are saving more too—the national savings rate, already up to 5 percent, could be heading back to its long-term average of 8 percent. Stocks have yet to fully factor in such a shift, which is why IVA International comanager Charles de Lardemelle says he would be more comfortable bargain-hunting if the S&P 500 were near 600, about 30 percent lower than where it’s been recently. Once that happens, he says, stocks will be truly cheap. He’s not expecting an immediate bull run, Lardemelle cautions, but that’s when he plans to start scooping up more cheap firms and holding on for the long haul. Ready...set...jump!Pretty much everyone agrees that before the economy can improve, the banking system needs to be fixed. But that fixing might require some dramatic moves. In some respects, the U.S. is moving much quicker than the Japanese did on this front, stress-testing banks to identify those that could survive a deeper downturn (and singling out the ones that probably won’t). The U.S. needs to deal with the banks that aren’t likely to survive, even if that means shutting them down or taking them over, says Takeo Hoshi, economics professor at University of California, San Diego. The results of those stress tests were due in late April. If the government makes the right moves, financial stocks should stabilize, reducing the overall volatility of the market. If Japan’s any guide, that’s when investors should start thinking about stock investing in earnest, says Abhay Deshpande, a portfolio manager at First Eagle Funds. And when they do... Go for the greenStick with companies that have enough cash to finance their operations without relying on debt, says Deshpande. Firms with bulletproof balance sheets—lots of cash, little debt—are better-positioned to withstand a period of deflation, meaning a bad cycle of falling prices that would cause businesses to contract and cut pay or lay off workers, leading to even less consumer demand and lower prices. Ideally, those firms will be able to keep investing in their businesses, gain market share and come out stronger after the crisis. The ultimate cushion: buying companies at a sharp discount to what a potential acquirer might pay, even in today’s market. 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 | 17 Apr 2009 | 4:00 am 6 Free Online Courses to Beef Up Your Resume (Deal of the Day)In this competitive job market, any extra skills you acquire can help beef up your resume and boost your odds of getting hired. And the best part is: You don't have to pay a dime to do so. Prestigious universities, including Harvard University, Massachusetts Institute of Technology, Yale University and Stanford University, are offering courses on the web that don't require you to apply, enroll or shell out thousands of dollars. In fact, many colleges and universities are offering podcasts, web videos and slideshows that professors use to teach their regular classes on the web for free. “Not only is [taking an online course] a good educational opportunity, it’s something smart to talk about when interviewing,” says Tory Johnson, CEO of Women for Hire, a New York-based employment company. It’s also a great way to spruce up your resume -- as long as you disclose that the course is an online non-credited class, says Jay Meschke, president of executive search firm EFL Associates. The OpenCourseWare Consortium offers free non-credited access to lectures and assignments at universities in the U.S. and abroad, including Oxford University. AcademicEarth.org, meanwhile, offers videos of lectures at Ivy League schools such as Harvard, Yale and Princeton and provides a list of top-rated instructors. SmartMoney.com spoke with recruiters and headhunters to find out which skills are in high demand among employers these days and which free online courses would help you acquire those skills. Here are six that could help you get a leg up on the competition. 1. Green Business: Sustaining a Business in a More Eco-Friendly WorldCourse to take: Laboratory for Sustainable Business, at MIT With the government promising to spend some $43 billion on green energy initiatives and to create three to four million jobs in sustainability in the next two years, being well-versed in the business behind such eco-friendly initiatives is a good way to grab an employer’s attention, says Johnson. MIT’s Laboratory for Sustainable Business class teaches such skills using case studies of businesses that are grappling with how to adapt to or embrace new green policies and initiatives. Graduate students from a variety of backgrounds, including business, science and engineering attend the class, says lead lecturer Sarah Slaughter, the class' lead lecturer. The University of California, Berkeley also offers a series of video lectures on the causes and consequences of climate change called Quantitative Aspects of Global Environmental Problems. 2. Administrative work: Handle Microsoft Office Apps Like a ProCourse to take: Training course in Microsoft Office applications, including PowerPoint and Excel, from Microsoft (MSFT). If you're seeking a job that requires administrative skills, chances are you’ll be tested in PowerPoint or Excel. “Even if you've used it daily in your previous work, but you don't know the official ins and outs, you'll score poorly on an assessment,” says Johnson. Taking a free course or online tutorial is a way to improve your chances of acing such a that test. To help you do so, Microsoft offers free training courses in Office 2003 and Office 2007 applications on its web site. 3. Technology: Juice Up Your Java KnowledgeCourse to take: Introduction to Software Engineering in Java, at MIT "Java"-- as in the Java programming language -- is one of the top three key words employers and recruiters use in IT resume searches at CareerBuilder.com. MIT’s Introduction to Software Engineering course is a great place to attain those skills. Java is used in a range of fields, including computer science, biology, chemistry and physics, says Olivier Koch, a Ph.D. student in robotics and one of the class' instructors. As a supplement to class materials, Koch recommends that his classroom students also tap into these three free resources: How to Think Like a Computer Scientist, Java Version, a 300-page book; Introduction to Programming Using Java, an online class taught at Hobart and William Smith Colleges and The Official Java API, the document specification for version 6 of the Java Platform from Sun Microsystems (JAVA). Also, consider "Introduction to Computer Science," taught by David J. Malan at Harvard University, which teaches takes you through the basics of programming languages. Video and slides for each lecture are available here. 4. Health-Care Services: Help Care for Aging Baby BoomersCourse to take: Managing Long-Term Care Services for Aging Populations, at The Johns Hopkins University’s School of Public Health. As the baby boom generation grows older, the need for long-term care services for seniors—from assisted living facilities and nursing homes to at-home care—is expected to skyrocket. Johns Hopkins' Managing Long-Term Care Services for Aging Populations teaches the basics of planning, organizing and delivering such services. The class covers a range of topics including regulatory issues that impact long-term care and the principles of managing senior services. Paul Willging, who teaches the class, notes that it's best to have a background in healthcare first. For other free Johns Hopkins courses offered online, click here. 5. Marketing: Know the Difference Between a Wiki, Tweet and BlogCourse to take: Blogs, Wikis, New Media for Learning, at Utah State University Are you a Facebook pro yet? You should be, at least if you’re seeking a job in marketing or communications, says Carolyne Savini, director of recruiting at Turnkey Sports & Entertainment, a sports marketing company. Cover the basics with Utah State University’s Blogs, Wikis, New Media for Learning class. Also check out the web site of Sreenath Sreenivasan, a new media professor at Columbia University’s Journalism School of Journalism, which offers an updated list of new media articles, statistics and resources. 6. Accounting: Crunch Numbers for a New EconomyCourse to take: Financial Markets, at Yale University Yes, the financial industry is bleeding jobs, but accounting and bookkeeping skills remain in high demand. Last month, 1,600 new jobs were created in the field, according to the Bureau of Labor Statistics. To be sure, accounting isn’t a trade you can learn solely online or practice without a degree (and the required certifications), but if you have a background in the industry it may be a good way to brush up on or expand your skills. To bone up, consider Yale professor Robert Shiller’s "Financial Markets" class, the videos of which are posted on AcademicEarth.org. If you’ve only got an hour or so to spare, be sure to watch Origins of the Financial Mess, a lecture by Alen Blinder, professor of Economics and Public Affairs at Princeton University. 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 | 17 Apr 2009 | 4:00 am Futures No Brighter as Citi, GE Beat Street (Market Update)News at a Glance
The LowdownThe bulls appear to have started the weekend early. Stocks looked to open lower Friday, as traders appeared cautious despite earnings victories from two Dow components. Shortly before 7:30 a.m., Dow, Nasdaq and S&P 500 futures were trading right around fair value. Citigroup (C) and General Electric (GE) each topped analysts' first-quarter income estimates. Citi earned $1.6 billion, which translated into a loss of 18 cents a share because of payments of prefered dividends. Still, it was a stark turnaround for a company that had lost $5.11 billion, or 34 cents a share, a year earlier. Citi's performance could set the tone for financials, which have benefited over the last week from surprising reports and guidance from JPMorgan Chase (JPM) and Wells Fargo (WFC). Meanwhile, General Electric, a blue chip whose management has come under heavy fire, saw its profits decline during the first quarter, albeit by less than expected. GE earned $2.9 billion, or 26 cents a share, down from $4.47 billion, or 43 cents a share, in the year-ago period, as revenues fell 9%. Wall Street had been looking for 22 cents a share. Earnings season has been somewhat eratic and not been particularly informative about the state of the economy, given the number of companies whose bottom lines have been buoyed by cost-cutting rather than growth. As a result, there is still some debate over the progess and pace of the recovery, even within the Federal Reserve. Dennis Lockhart, president of the Atlanta Fed, and Janet Yellen, president of the San Francisco Fed, offered differing opinions late Thursday, Reuters reported. Speaking at a conference in New York, Lockhart said the economy may post modest growth as soon as the third quarter, but Yellin warned that recent signs of economic progress may be misleading. "The negative dynamics between the real and financial sides of the economy have created severe downside risks," Yellen said. On the Nymex, oil prices slipped before the open. By 7:15 a.m., crude traded down 15 cents at $49.83 a barrel. World markets were mostly higher. In Asia, Japan's Nikkei finished up 1.7%, while Hong Kong's Hang Seng picked up 0.1%. In Europe, the U.K.'s FTSE traded up 1.0% in afternoon 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 | 17 Apr 2009 | 4:00 am RSC Holdings: Moving Heaven and EarthIT IS MIGHTY TOUGH THESE DAYS TO FIND TAKERS for forklifts, backhoes and cranes. Just ask the leading companies in the business of renting out construction equipment. With residential and commercial construction slowing to a crawl, these outfits have been suffering sharp declines in sales, profits and market value. The stocks of the leading players have fallen as far as 75% over the past year. But one beaten-down rental company looks to have the management savvy and financial wherewithal to weather these conditions, and ultimately to thrive. RSC Holdings, the second-largest player in the industry, with annual revenue of $1.8 billion, has one of the safest, newest and best-maintained fleets of construction equipment in the industry -- from air compressors to 135-foot-tall boom lifts. Equally important, it has plenty of cash flow to help maintain its position. With its business almost exclusively in commercial and industrial projects -- with almost no exposure to residential housing -- RSC (RRR) is well positioned to benefit from any revival in the economy, and/or any rise in infrastructure spending resulting from the Obama administration's stimulus plans. RIGHT NOW, CONSTRUCTION COMPANIES rent, rather than own, about 40% of the equipment they use. But Erik Olsson, the company's chief executive, figures that as the economy picks up -- perhaps as early as the second half of this year -- construction companies "will prefer to rent rather than buy, because credit for purchases will still be tight and people will tend to be cautious about making new capital investments." He adds: "In an economic upswing, we will benefit in a big way." He is probably right, and that bodes well for RSC's stock. Morgan Stanley analyst Vance Edelson figures it could more than triple over the next 12 to 18 months, to 16. True, any improvement in RSC's business is unlikely to show up on the bottom line until next year. The consensus forecast of analysts calls for net income of 41 cents a share this year, compared with $1.18 a share last year, followed by improvement in 2010, to 60 cents a share. By several measures, however, the Scottsdale, Ariz.-based RSC has been faring better than its rivals. Last year, while United Rentals (URI) posted a sales decline of 5.9% and Hertz Global Holdings (HTZ) saw sales fall 5.6%, RSC's rental revenue was up 1.6%. At the same time, management has been able to generate ever-stronger free cash flow in a weak operating environment, and it has been using that cash to reduce the company's debt. Since the end of 2006, total debt dropped by $437 million, to $2.57 billion. Edelson rates the shares Overweight, based on his expectation of 51% growth in free cash flow in 2009, to $335 million, coupled with aggressive cost reductions, including cuts in fleet size, number of stores, headcount and capital spending. "The stock is cheap and trading at an attractive entry point," he says. He notes the stock, near its 52-week low, is changing hands at 4.4 times 2009 pretax earnings, versus an industry average of about seven times. One thing that helps keep RSC's cash flow flowing is the relative youth of its fleet, which allows the company to spend less than rivals on replenishing old gear. The average age of RSC's equipment fleet was 33 months at the end of 2008, compared with 39 months for the United Rentals fleet. "In an environment like the present, cash is king," says Denis J. Nayden, a managing partner with Oak Hill Capital Partners, which together with Ripplewood Holdings bought RSC from its owner Atlas Copco, a Sweden-based industrial conglomerate, in 2006 and then took it public the following year. "It means creditors will be taken care of, the quality of equipment maintained properly, vendor relationships supported and the balance sheet strengthened," Nayden says. "And, of course, strong cash flow is very reassuring to investors and shareholders." BULLS ALSO LIKE THAT THE COMPANY now gets more than 50% of its sales from rentals tied to maintenance and repairs, up from 35% three years ago. That business is less cyclical and generally carries higher margins than rentals for construction work. But what attracts investors the most is the company's disciplined management style under Sweden-born Olsson. "Despite facing a challenging economic outlook, RSC continues to maximize that which it can control," writes analyst Scott Schneeberger of Oppenheimer & Co. In short, the company, and it stock, could prove every bit as dependable as its sturdy gear.
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 | 17 Apr 2009 | 4:00 am Food business formed with big plans sells upCooks Food Group, which listed on the NZX's alternative exchange (NZAX) just six months ago with bold plans for growth, is selling up its operations. In December the company announced it was to buy the Diamond and DYC brands from...Source: New Zealand Herald - Business | 17 Apr 2009 | 3:22 am Inflation rate slips to 3pc, but food prices upNew Zealand's annual inflation rate slipped to 3 per cent in the March quarter, but food prices still packed a nasty punch. The annual rate has fallen from an 18-year high of 5.1 per cent as recently as the September quarter, and...Source: New Zealand Herald - Business | 17 Apr 2009 | 3:00 am Starwood sues Hilton, alleges corporate espionageLOS ANGELES (Reuters) - Starwood Hotels & Resorts Worldwide Inc sued rival Hilton Hotels and two of its top executives for corporate espionage on Thursday, accusing the pair of ex-Starwood workers of stealing trade secrets to speed Hilton's entry into the "lifestyle" market.Source: Reuters: Business News | 17 Apr 2009 | 2:37 am KiwiRail under pressure to increase Toll chargesKiwiRail is under renewed pressure from logistics companies to charge its former trucking business the same rate as everyone else. Toll Holdings of Australia kept the trucks when it sold rail back to the Government and added to...Source: New Zealand Herald - Business | 17 Apr 2009 | 2:30 am Fed officials see signs of improvementNEW YORK (Reuters) - Two top Federal Reserve policy-makers took divergent views on the U.S. economy on Thursday, with the head of the Atlanta Fed seeing a return to growth later this year, while the head of the San Francisco Fed saw the potential for an even deeper contraction.Source: Reuters: Business News | 17 Apr 2009 | 2:04 am ASB freezes pay for 3,500 staffASB Bank is freezing pay for 3,500 of its staff earning over $50,000 a year, as part of a new push to protect jobs. All those earning under $50,000 will only get pay rises of between 2 and 3 per cent, the bank announced this morning. Chief...Source: New Zealand Herald - Business | 17 Apr 2009 | 2:00 am Rattner named in SEC probe of NY kickbacks: report (Reuters)Reuters - Steven Rattner, the leader of the Obama administration's auto task force, was one of the investment-firm executives involved with payments now under scrutiny in a state and federal investigation into an alleged kickback scheme at New York state's pension fund, The Wall Street Journal reported.Source: Yahoo! News: Stock Markets News | 17 Apr 2009 | 1:41 am New dam plans for Clutha River releasedPlans for up to four new hydro-electric dams on the Clutha River have been released by power company Contact Energy. Contact has started a public consultation process around a variety of options, which include large new storage...Source: New Zealand Herald - Business | 17 Apr 2009 | 1:30 am Southwest faces 'toughest environment' yetThe chief executive of the US airline said its performance in the first three months was 'disappointing' as it disclosed worse than expected results and a first quarterly net lossSource: Financial Times - US homepage | 17 Apr 2009 | 1:19 am GMAC mortgage unit: We're hiring again (Reuters)Reuters - GMAC LLC, the General Motors Corp financing affiliate that received a government bailout, said its mortgage unit is hiring 1,000 people to handle a surge in refinancings and jumbo loans.Source: Yahoo! News: Business | 17 Apr 2009 | 1:18 am Google's 11-year growth spurt endsRevenues in the first three months of this year fall below those of the preceding quarter for the first time in the company's history as the global recession ends its 11-year runSource: Financial Times - US homepage | 17 Apr 2009 | 1:04 am Google profits up, but recession slows revenue growthSAN FRANCISCO - Google eked out a higher profit in the first quarter, although the internet search leader's revenue growth decelerated to the slowest pace since the company went public nearly five years ago. The results have sent...Source: New Zealand Herald - Business | 17 Apr 2009 | 1:00 am Washington steps up Mexico drug war helpThe US president on Thursday began his first trip to Latin America by offering an olive branch to one of the US's most bitter critics, President Hugo Chávez of VenezuelaSource: Financial Times - US homepage | 17 Apr 2009 | 12:42 am Supermarket giant set to charge for plastic bagsShoppers at New World, Four Square and Pak 'n' Save will pay for plastic bags from August as part of an environmental campaign. Shoppers will be charged 5 cents a bag at the supermarkets owned by the Supermarket giant, Foodstuffs...Source: New Zealand Herald - Business | 17 Apr 2009 | 12:30 am CDS blamed for role in bankruptcy filingsCredit default swaps, the derivatives instruments that have figured prominently in the global financial crisis, are now being blamed for playing a role in two bankruptcy filings this weekSource: Financial Times - US homepage | 16 Apr 2009 | 11:57 pm Pfizer and GlaxoSmithKline link up on HIV to protect salesGlaxoSmithKline (GSK) and Pfizer, the two biggest pharmaceuticals companies, are to merge their HIV and Aids treatments into a new company in one of the most far-reaching shake-ups the industry has seen as they seek to cut costs and salvage sales.Source: Latest Business News from Times Online | 16 Apr 2009 | 11:00 pm How will the housing market take the next bend in the track?Picture a Formula One race track. Now imagine that the housing market is a car and mortgage lenders are the driver; Jenson Button, for argument’s sake. A bend has just come into view. If they take it too fast, the market could career off course; too slow, and there is a risk of losing valuable ground or stalling.Source: Latest Business News from Times Online | 16 Apr 2009 | 11:00 pm Google sees profits rise but growth slowsGoogle’s profits rose by 9 per cent in the first quarter as it reaped the benefits of a shift to online advertising from traditional media, as well as a cost-cutting drive. Yet the internet search giant’s revenue growth fell to its slowest pace since it went public nearly five years ago, illustrating how the recession is squeezing even the strongest of companies.Source: Latest Business News from Times Online | 16 Apr 2009 | 11:00 pm First-time buyers can bag a bargain homeDepending on whose data you believe, property prices have fallen by anything from 15 per cent to 20 per cent since their peak in mid-2007. All but the most pessimistic commentators claim that the worst of the falls are now over, and although few anticipate prices rising sharply any time soon, they argue that buyers should not expect further significant falls in house prices. So is now the time for first-time buyers to go bargain-hunting?Source: Latest Business News from Times Online | 16 Apr 2009 | 11:00 pm GSK and Pfizer: drug companies refuse to swallow merger pillBritain's leading drug companies are holding firm against the wave of mergers sweeping the industry in America. David Brennan, the boss of AstraZeneca, said this week that he saw no need to join the latest round of deals. His focus would be on collaboration rather than consolidation.Source: Latest Business News from Times Online | 16 Apr 2009 | 11:00 pm Obama to spare agents involved in tortureCentral Intelligence Agency interrogators who tortured detainees during the administration of George W. Bush will not be prosecuted, President Barack Obama said on Thursday as his administration released legal memos that Mr Bush used to justify harsh techniques such as waterboardingSource: Financial Times - US homepage | 16 Apr 2009 | 10:53 pm Write-Offs: 04.16.09$$$ Barry Diller is not eating that. [NYM] $$$ "News flash: this program was not designed for Harvard College," she said, drawing laughter from the audience. [Crimson] $$$ Ditch the Jet: It's Cool to Fly Commercial [Wealth Report] $$$ SemGroup examiner's report [PDF] $$$ Dollar Dominatrix On JPM Q1 [PDF] 
Source: Dealbreaker | 16 Apr 2009 | 10:45 pm Presented By: Your Online Broadband Fact Resource
Source: Dealbreaker | 16 Apr 2009 | 10:45 pm TBTF: The BookDavid Kestenbaum's on Morning Edition Friday, talking more about Gary Stern and Ron Feldman's 2004 book, "Too Big To Fail: The Hazards of Bank Bailouts." We've posted an excerpt for you. Bonus: The story includes gem of a quote from Federal Reserve Chairman Alan Greenspan about the concept of "too big to fail." "I always took the position when I ended up on the Hill that Fannie and Freddie were not too big to fail. Needless to say, my fingers were crossed behind my back." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 10:32 pm GM seeks provision for its suppliersGeneral Motors is prepared to argue that hundreds of its suppliers are 'critical vendors' who require timely payments if it seeks bankruptcy protection, setting the stage for what would be the most sweeping attempt ever to win special treatment for such contractors, people close to the matter saySource: Financial Times - US homepage | 16 Apr 2009 | 10:32 pm "What Is Going To Happen To The Other Kids, Huh?"
General Motors Corp. is planning to make a formal offer to all bondholders by April 27 to exchange their $27.5 billion in claims for equity, according to a person with knowledge of the discussions. Yes, we know, we know, the administration wants 66% of the original bonds whacked out via such a swap so their fantasy of a "surgical bankruptcy" can be realized (where "surgical bankruptcy" means "fail to piss off the UAW too badly") but no one seems very likely to want to make nice-nice with this administration in a case like this (when being "nice" means giving up cash). This hasn't stopped the administration from trying, though the latest efforts (concentrating on how bad it would be for Detroit if the bankruptcy turns out as anything but a blistering bit of unexpected caning for bondholders) seem a little familiar to us. Familiar sort of like the guilt trip your mother used to play on you when you were twelve. Or certain 1970s public service announcements. GM Said to Plan All-Equity Offer for Bondholders [Bloomberg]
Source: Dealbreaker | 16 Apr 2009 | 10:28 pm NY AG and SEC probe pension fund investments (AP)AP - A corruption scandal at the state's retirement fund is the latest in a long string involving politically connected intermediaries called placement agents sometimes hired by investment firms hoping to land rich investment deals with pension officials, experts said.Source: Yahoo! News: Stock Markets News | 16 Apr 2009 | 10:27 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: Business | 16 Apr 2009 | 9:49 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 | 16 Apr 2009 | 9:49 pm The Obama Portfolio: SidewaysThe Obama Portfolio (Since Inception): +22.23% Earlier: The Obama Portfolio
Source: Dealbreaker | 16 Apr 2009 | 9:49 pm Stiglitz Says Corporate `Welfarism' Is Worst Possible SystemSource: Bloomberg - All Podcasts | 16 Apr 2009 | 9:38 pm How the Dow Jones industrials fared Thursday (AP)
Source: Yahoo! News: Stock Markets News | 16 Apr 2009 | 9:07 pm Is JPMorgan Dismantling F.A.S.T.?Yes, that's why we told you so Tuesday. But just to reiterate: it's really happening.
Source: Dealbreaker | 16 Apr 2009 | 8:51 pm Stanford Financial Employees Encouraged To Send "Get-Well Soon" E-Mails And Flowers To Allen Stanford By Ponzier's Future Mother-in-Law
Source: Dealbreaker | 16 Apr 2009 | 8:29 pm Rosetta Stone shares jump in public debut (AP)AP - Shares of language-learning software company Rosetta Stone Inc. surged almost 40 percent Thursday in their public debut on the New York Stock Exchange.Source: Yahoo! News: Stock Markets News | 16 Apr 2009 | 8:20 pm Bank Of Amerillwide: Generating Revenue Begins By Getting To The Office On TimeIn these tough times, every so often, it's best to restate one's goals (making money), and achieve stated goals by getting back to basics. From: [redacted]
Source: Dealbreaker | 16 Apr 2009 | 8:19 pm Levitt, Radke, Coffey, Ferrell Debate Market RegulationSource: Bloomberg - All Podcasts | 16 Apr 2009 | 8:11 pm Antitrust Is Back Home EarlyAnd you thought antitrust had no surprises left in it. Far from it. Even the threat of extended reviews (six to nine months in this case) is still enough to blow a chilly breeze over the swollen nether regions of about-to-merge firms. In fact, Mom's sudden appearance at the door ("I thought you were going to the mall!") can drain the blood from the hottest deals- leaving one party or another pleading for another shot ("I'll even cuddle after this time. For ten minutes! I promise!") but often to no avail. IBM is no longer interested in buying smaller rival Sun Microsystems Inc at any price, due to concerns that such a deal would draw intense regulatory scrutiny, CNBC reported on Thursday. Sorry Sun. We understand cold showers help. IBM not interested in Sun at any price: report [Reuters]
Source: Dealbreaker | 16 Apr 2009 | 7:56 pm French president criticises world leadersFrance's President Nicolas Sarkozy is well known for his blunt speaking and ascerbic observations and managed to insult three of his closest allies over lunchSource: Financial Times - US homepage | 16 Apr 2009 | 7:49 pm French finance house reveals first lossCaisse des Dépôts et Consignations, France's state-owned finance house, has unveiled its first loss since it was established in 1816Source: Financial Times - US homepage | 16 Apr 2009 | 6:58 pm Trying To Save The HorsesOne of the neat things about this "100 Days" road trip has been the steady stream of ideas flowing in from NPR's audience. It was a listener's email that guided me to Kentucky houseboat country and to Orlando. Then came an e-mail from a horse enthusiast, who insisted a visit to Colorado horse country would open my eyes to another facet of the recession. She was right. My first stop was the Ugly Tractor Ranch in Castle Rock, on the front range south of Denver. Ranch owner Anita LittleWolf introduced me to her eight horses -- including a 9-year-old quarter horse named Dash, who proceeded to sneeze all over my shirt. Funny moment, as you'll hear. But our conversation about Dash became more serious. LittleWolf described how in the recession, the value for a horse like Dash has dropped. She's been seeing horses like him sell at auction for the price of a microwave oven. The problem, she said, is people have become more pinched for cash and can't afford to feed and care for their horses. So they're trying to sell dirt-cheap. And some horses, LittleWolf said, are showing up at auction looking very unhealthy. Sad as it is, she said, the situation helps her understand why some people are calling for the return of horse slaughter on US soil. The last slaughter houses closed in 2007. Here's a bit of my conversation with LittleWolf. The question of whether the recession has led to a rise in neglected horses is not confined to Colorado, as the New York Times explained earlier this month. And there's a push in a number of states to re-open slaughter houses. Pro-slaughter lawmakers are arguing that the recession has led to cruel treatment and abandonment. "Horses are being kicked out on the roads, left on the land," Montana GOP state representative Ed Butcher -- a horse-owner himself -- told the Associated Press. It's a line of argument that's frustrated Hilary Wood, president and founder of Front Range Equine Rescue. Her organization rescues neglected horses, putting a special focus on those likely heading for slaughter.
I caught up with Wood over lunch in Colorado Springs. She said the pro-slaughter movement is creating a false perception that horses are being abandoned in fields and on road sides everywhere. She accused lawmakers like Rep Butcher in Montana of playing on economic fears. What's needed is not slaughter, Wood said, but more education for horse owners so they know their options. Here are a few clips from our lunch.
» E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 6:47 pm Starbucks Cut to `Neutral' at UBSSource: Bloomberg - All Podcasts | 16 Apr 2009 | 6:40 pm A Different Class of Ponzi
...liquidators claim "in March and May 2008, Bernard Madoff caused wire transfers from MSIL accounts to be made to the Aston Martin company in the amounts of £35,000 and £100,000, respectively, for a total of £135,000 ($237,600), in order to enable the purchase of a vintage Aston Martin automobile, model number DB2/4 1964 ... for Mr. Madoff's brother Peter Madoff." I mean there's ponzi and then there's Ponzi. Just ask the Noels. Peter Madoff's $235,000 Company Car [ABC News]
Source: Dealbreaker | 16 Apr 2009 | 6:35 pm Why You're Not SavingThis letter and screengrab from Gordon Wilson have stuck with me for days and days now. Wilson says he's happy to show us why people aren't saving. Yes, he says, some people just aren't used to putting money aside -- but look what happens lately when you do. Exhibit A: The interest rates on certificates of deposit. He writes: People should save. But there needs to be more of an incentive to do it. These saving rates don't even cover the cost of inflation. One of the unfortunate side effects of having the fed rate at such a low level [0 to .25 percent] is that people who want to save are effectively punished for doing so. A 5-year CD at 1.75 percent?! That is outrageous. Since 2000, annual inflation has generally ranged between 2 and 4 percent. If your money isn't growing faster than that, its purchasing power is shrinking. The bank will hand it back to you, with interest, but you can't do as much with it as you could have done today. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 16 Apr 2009 | 6:32 pm Pickens Says Natural Gas Is Answer to U.S. Reliance on OilSource: Bloomberg - All Podcasts | 16 Apr 2009 | 6:27 pm Cliggott Sees Volatile U.S. Stock Market Through 2009Source: Bloomberg - All Podcasts | 16 Apr 2009 | 6:19 pm Morgan Stanley's Roach Sees China's Economic Growth SlowingSource: Bloomberg - All Podcasts | 16 Apr 2009 | 6:02 pm A Call For Submissions: Share Your Exploitive AIG Stories
Source: Dealbreaker | 16 Apr 2009 | 5:59 pm Silvia Says U.S. Unemployment May Exceed 10% in 2010Source: Bloomberg - All Podcasts | 16 Apr 2009 | 5:45 pm George Sees Strong Domestic Core Banking Results for JPMorganSource: Bloomberg - All Podcasts | 16 Apr 2009 | 5:36 pm Bobrinskoy Says JPMorgan's Dimon Is Best Bank CEOSource: Bloomberg - All Podcasts | 16 Apr 2009 | 5:29 pm CMC's Laidi Sees Global Bear-Market RallySource: Bloomberg - All Podcasts | 16 Apr 2009 | 5:21 pm Mexico seeks to calm tourists' fearsMexico's tourism industry is launching a counter-offensive in the wake of rising drug-trade violence. It's trying to lure tourists who may have been scared by negative news reports. Dan Grech reports.Source: Marketplace | 16 Apr 2009 | 5:00 pm U.S.-Mexico relationship remains strongShannon O'Neil, a fellow for Latin American Studies at the Council on Foreign Relations, talks to Kai Ryssdal about Mexico's economic stability and what it means for the United States.Source: Marketplace | 16 Apr 2009 | 5:00 pm Nothing too hairy in barbershop's viewMarketplace's Tess Vigeland revisits a barbershop in Jefferson City, Mo., where six months ago the owner and his customers were taking market woes in stride. Not much has changed, except they really don't like those bailouts.Source: Marketplace | 16 Apr 2009 | 5:00 pm Will this IPO translate into turnaround?Rosetta Stone, the language software maker, is one of the few companies to file an IPO this year. With a strong market debut, will other companies follow suit? Jennifer Collins reports.Source: Marketplace | 16 Apr 2009 | 5:00 pm We need home equity insurance nowThe housing market is struggling to recover even with the Obama administration's $75 billion foreclosure prevention program. Commentator Barry Nalebuff says to get housing back on track we need a federal home equity insurance program.Source: Marketplace | 16 Apr 2009 | 5:00 pm Mall vacancies lead to makeoversMall operator General Growth Properties has filed for bankruptcy, the largest real estate company to go belly up in history. As Stacey Vanek-Smith reports, to survive in this recession, malls are making themselves over.Source: Marketplace | 16 Apr 2009 | 5:00 pm JPMorgan throws 'toxic' plan for a loopJP Morgan Chase CEO Jamie Dimon says his bank won't participate in the government's program to rid banks' balance sheets of toxic assets. What does this mean for the program and the banking industry? Jeremy Hobson reports.Source: Marketplace | 16 Apr 2009 | 4:59 pm IMF Sees Long RecessionHello, synchronous recession. The International Monetary Fund gives a preview of its semiannual World Economic Outlook today. It's grim: The duration of a synchronous recession is, on average, nearly 1.5 times as long as the duration of the typical recession. Recoveries are usually sluggish, owing to weak external demand, especially if the United States is also in recession: during the 1975 and 1980 recessions, sharp falls in U.S. imports contributed to a significant contraction in world trade. The analysis suggests that the combination of financial crisis and a globally synchronized downturn is likely to result in an unusually severe and long lasting recession. This combination is historically rare, and inferences should be drawn cautiously. Nonetheless, the fact that the current downturn is highly synchronized and associated with deep financial crises suggests that it is likely to be persistent, with a weaker-than-average recovery. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 4:18 pm 'A Small Glimmer Of Light'
Cheryl writes: I live in Las Vegas, the poster child for the housing bubble, foreclosures, and failed projects. Last year when the economy took its downward plunge, I saw communities stop building as developers went bankrupt. My boyfriend's community is one in particular where one day they were laying foundation and putting up walls, and the next day the builders were gone, leaving a 60% completed community surrounded by ghosts of the houses that could have been. Now for the good news - a year after building halted on this project, a new developer has purchased the unfinished structures and will be completing them and selling them for fractions of what they were selling a couple of years ago. The same thing is happening with a luxury condo development on the TPC golf course, where a new contractor will be finally completing the project. To me, this is a small glimmer of light in a depressing housing market. It's encouraging to know that there are investors out there who think that the time is right to put money into finishing these projects and feel confident that there will be interested buyers. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 3:42 pm The Million Year RegulationOur podcast yesterday talked about how hard it was to get a handle on the really large numbers. Lawmakers have to deal with these things all the times, a million dollar line in the budget, billion dollar bank bailouts, a trillion dollar federal deficit. Sometimes government has to deal with long timescales too. In fact there is one regulation that would extend a million years into the future. (In that story we take a time machine back one million years. And I have to say, before I did the story I wasn't quite sure what would be there.) » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 2:37 pm Housing Starts Near Record LowHousing starts hit their second-lowest mark in March, falling 10.8 percent. The government has been keeping records on home-building for half a century. We know developers built too many houses, so we can expect they'll hold off for a while before breaking out the bulldozers again. Here's my question: Where are we in that cycle? Are we looking, as the NYT says, at "more evidence that the steep slump in housing . . . has yet to run its course"? Or, as Ian Shepherdson of High Frequency Economics writes this morning, are we perhaps "levelling off after a calamitous plunge"? Calculated Risk expects the market to hit bottom sometime this year. The site notes that builders spent the month finishing far more homes, at 550,000, than they did starting new ones (358,000). "This is important because residential construction employment tends to follow completions, and completions will probably decline further," CR says. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 1:58 pm Mall Giant FallsAfter months of trying to get extensions on its loans, the #2 mall owner in the country, General Growth Properties, has filed for bankruptcy. You can hear our story explaining GGP's troubles here. GGP really was a victim of the credit crisis. It owned plenty of profitable malls. But it had borrowed billions to buy some of those malls, and the way these things work is that these big real-estate loans come due in say five years with a huge balloon payment. In normal times the company simply refinances before that happens. But with the credit crisis, GGP couldn't do that. Some of the banks that had lent GGP money were on shaky ground. So I wonder what this means for them. Two mall analysts I talked to for that story both said they didn't think GGP would be forced into bankruptcy, since that would just be messier for everyone. I'll try to check in with them today. You can read GGP's statement here though the company's website is a little slow right now. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 16 Apr 2009 | 1:43 pm
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