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Awkward! Oh, man. Being a parent is tough, huh? Constantly worrying about drugs and drinking, and your kids getting caught up with the wrong crowd and all that. And then there's TV and film. You can't flip a channel without contracting an STD from some MTV trollop, am I right? And it's like, you don't want to be constantly monitoring what they're watching but sometimes you have to! And it's not like you're not going to make mistakes, of course you're going to make mistakes, everyone makes mistakes. Some are dumber than others, of course, and some are entirely avoidable and will make you look like a straight up idiot but whatever, honestly I'm a parent, I never said I was perfect, I'm just a human being like everyone else. That's all I am. A government lovin', prostie bangin' human. Source: Dealbreaker | 21 Apr 2009 | 12:49 pm Vikram Pandit To Get The Heave-Ho? We don't want to type it, let alone think it, but it's possible Vikula won't be around long enough to enjoy his new $10 million office (though, really, now that it's been stripped of a Zen Garden, is it really worth sticking around for? Probably not). The Financial Times reports that senior officials at the FDIC have been talking Pandito replacements, in the event the bank needs more cash-money. Apparently successors include new CFO Ned Kelly, old CFO Gary Crittenden, and an unnamed new board member. "It is unthinkable that Vikram could stay on if Citi requires more federal funds," said a person familiar with the matter. "It is prudent to be thinking about different scenarios." The FDIC is only one of the regulators that has a say on whether Mr Pandit steps down if the government bails out Citi for the fourth time in six months following completion of a "stress test" of its health. Any decision on Citi's leadership will be led by the Treasury, which is about to take a 36 per cent stake in the company and will sanction further capital injections. The Federal Reserve and the Office of the Comptroller of the Currency, which regulate national banks, will also have to bless top management changes. Source: Dealbreaker | 21 Apr 2009 | 12:35 pm Presented By: Source: Dealbreaker | 21 Apr 2009 | 12:35 pm CAT reports first loss since '92, cuts forecast (Reuters) Reuters - Caterpillar Inc , the world's largest maker of construction and mining equipment, reported its first quarterly loss in 17 years on Tuesday, pulled into the red by more than half a billion dollars in charges from its wave of recession-triggered layoffs. Source: Yahoo! News: Business | 21 Apr 2009 | 12:28 pm Coke meets expectations Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 12:25 pm Allen Stanford: "This Is Not A Ponzi Scheme Whatsoever" Any Allen Stanford interview that doesn't come with tears or promises to "die and go to hell if [this] is a Ponzi scheme" or threats to punch his interviewer in the mouth or at the very least take place within earshot of a cocktail lounge is going to be something of a letdown. That much is obvious. He's spoiled us, and if you're going to kick off your media blitz with salty discharge and threats of assault, you'd better have something good down the road. Nevertheless, here are some highlights from the latest meet and greet with CNBC's Scott Cohn, on the matter of Stanford Financial possibly being a massive fraud. Q: At the heart of the allegations from the sec are the returns you claimed and the interest you paid on the CDs: 7.45% in 2005, 7.87% in 2006, 5.375% last year when prevailing interest rates were a whole lot lower and you couldn't get a CD in this country paying more than about 2 percent. How did you do it if it wasn't a Ponzi scheme? A: First of all how did we pay 2 billion in early redemption of CDs in October, November, December, early January of this year without having the Fed to go to like the big banks here? Citibank and Bank of America and Wachovia-- just going down the line--ran out of money, and they had to go to the Federal Reserve to get money to pay their depositors or they wouldn't have had any money. We stood on our own two feet with no fed window to go to and that right there tells you it's no Ponzi scheme. Q: So these weren't fictitious returns? A: No...though there were some things I found out in meetings that my attorney has instructed me not to discuss. Source: Dealbreaker | 21 Apr 2009 | 12:22 pm Stocks point lower amid mixed earnings reports (AP) AP - Wall Street signaled the selling would continue for a second day Tuesday following a string of disappointing earnings reports. Source: Yahoo! News: Stock Markets News | 21 Apr 2009 | 12:21 pm Asian markets submit to fears of further woes Markets plunged across Asia on Tuesday as the spring confidence that underpinned the recent rally buckled under fears of a renewed credit crunch and further misery for manufacturers. Source: Latest Business News from Times Online | 21 Apr 2009 | 12:21 pm Wall Street futures point lower on weak results NEW YORK (Reuters) - Stock index futures pointed to a lower open on Tuesday on concerns about the state of corporate profits after several major U.S. companies reported disappointing quarterly results and even cloudier outlooks. Source: Reuters: Business News | 21 Apr 2009 | 12:16 pm Wall Street futures point lower on weak results (Reuters) Reuters - Stock index futures pointed to a lower open on Tuesday on concerns about the state of corporate profits after several major U.S. companies reported disappointing quarterly results and even cloudier outlooks. Source: Yahoo! News: Stock Markets News | 21 Apr 2009 | 12:16 pm Wall Street futures point lower on weak results (Reuters) Reuters - Stock index futures pointed to a lower open on Tuesday on concerns about the state of corporate profits after several major U.S. companies reported disappointing quarterly results and even cloudier outlooks. Source: Yahoo! News: Business | 21 Apr 2009 | 12:16 pm Coca-Cola's lower profit meets Street view NEW YORK (Reuters) - Coca-Cola Co reported a lower quarterly profit on Tuesday that met Wall Street estimates, as North American sales volume fell 2 percent. Source: Reuters: Business News | 21 Apr 2009 | 12:14 pm Coca-Cola's lower profit meets Street view (Reuters) Reuters - Coca-Cola Co reported a lower quarterly profit on Tuesday that met Wall Street estimates, as North American sales volume fell 2 percent. Source: Yahoo! News: Business | 21 Apr 2009 | 12:14 pm Coca-Cola's lower profit meets Street view NEW YORK (Reuters) - Coca-Cola Co reported a lower quarterly profit on Tuesday that met Wall Street estimates, as North American sales volume fell 2 percent. Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:14 pm Nouriel Roubini: Has Pessimism Worn Out Its Welcome? Nouriel Roubini, whose pessimistic notes to investors have become redundant, has passed along his latest predictions of the economy and, to hear him tell it, we are all going to hell. At his website, he makes three observations, which sound a good deal like those that he makes at public appearances all over the world. The first [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 12:13 pm Movers & Shakers: Tuesday's biggest gaining and declining stocks Stocks expected to move significantly in trading on Tuesday include the major banks - including Comerica, Huntington, KeyCorp, Regions, State Street, U.S. Bancorp and Zions - as well as Boston Scientific, Caterpillar, Coke, Delta Air, DuPont, IBM, Lexmark, Lockheed Martin, Merck, Schering-Plough, Texas Instruments and United Technologies. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:13 pm Deflation: reasons to be cheerful and reasons to be fearful Britain's economy entered deflation for the first time since Harold Macmillan was prime minister. What is deflation and is it all bad news? Source: Telegraph Finance | 21 Apr 2009 | 12:10 pm Smart Money Moves for Young Investors (BusinessWeek Online) BusinessWeek Online - At a conference on financial literacy on Apr. 20 in Chicago, Federal Reserve Chairman Ben Bernanke said it was time for Americans to learn to manage their money. Ramit Sethi couldn't agree more. The 26-year old personal finance guru has made it his mission to help Americans do just that and he tries to make it as simple as possible. In his new book, I Will Teach You to Be Rich, and on his blog of the same name, Sethi shows twentysomethings how they can automate their financial decision-making and learn how not to overanalyze. This is especially true when it comes to investing. ... Source: Yahoo! News: Business | 21 Apr 2009 | 12:08 pm UPDATE 1-Bronco to raise C$15mln via debentures * Q1 avg production target below April 1-20 period target Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:07 pm Merck earnings dive on year-ago gain, lower sales Merck & Co. reports dramatically lower first-quarter earnings early Monday, due largely to a massive gain taken by the drug maker in the 2008 quarter related to its partnership with AstraZeneca PLC and lower sales. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:07 pm Huntington Bancshares swings to $2.5 billion loss Ohio's Huntington Bancshares said on Tuesday that it swung to $2.49 billion loss in the first quarter after it took a goodwill impairment charge and boosted losses for credit provisions. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:07 pm Australia likely in recession: central bank Australia's central bank chief said on Tuesday the country was probably already in recession but predicted that "dynamic" Asian markets would help it weather the economic downturn. In an Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:06 pm Lexmark profit nearly halved; printer to close plant WASHINGTON (MarketWatch) -- Lexmark International Inc. on Tuesday said first-quarter sales and profits fell sharply as businesses and consumers cut back on purchases of printers and ink, prompting the company to announce it will close a plant in Mexico to save money. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:06 pm Johnson Controls loses nearly $200 million, sees profit ahead Johnson Controls Inc. on Tuesday reported a second-quarter loss of nearly $200 million after the auto parts supplier was unable to shake off the historic industry downturn that has led to steep production cuts at its top automaker customers. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:05 pm Idola Infotech Appoints Salvatore Cangialosi of The Josefa Group as Senior Strategic Advisor ISELIN, N.J., April 21 /PRNewswire/ -- Idola Infotech, LLC. ( href="http://www.idolainfotech.com/">http://www.idolainfotech.com ), a leading provider of risk and compliance Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:05 pm CAT reports first loss since '92, slashes forecast CHICAGO (Reuters) - Caterpillar Inc , the world's largest maker of construction and mining equipment, reported its first quarterly loss in 17 years on Tuesday, pulled into the red by more than half a billion dollars in charges from its wave of recession-triggered layoffs. Source: Reuters: Business News | 21 Apr 2009 | 12:04 pm CAT reports first loss since '92, slashes forecast CHICAGO (Reuters) - Caterpillar Inc , the world's largest maker of construction and mining equipment, reported its first quarterly loss in 17 years on Tuesday, pulled into the red by more... Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:04 pm Delta Air Lines narrows first-quarter loss and starts bag fee Delta Air Lines said Tuesday that it narrowed its first-quarter loss and set new measures to increase revenue and preserve liquidity. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:04 pm Polish regulator pushes for bigger gas price cuts WARSAW, April 21 (Reuters) - Polish regulator URE wants gas monopoly PGNiG to cut prices by more than the 9 percent the company has proposed, URE deputy head Marek Woszczyk said on Tuesday. Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:03 pm Euro higher on positive German data The euro recovered on Tuesday from a one-month low against the dollar thanks to positive economic data from Germany, Europe's biggest economy, dealers said. The European single currency... Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:03 pm Caterpillar swings to loss on workforce charge Heavy machinery giant Caterpillar Inc. on Tuesday says it swings to a first-quarter loss, hurt by charges related to job cuts, as the prolonged economic slump and falling commodities prices continue to sap demand from the company’s top customers. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:03 pm M&T Bank Corporation Announces First Quarter Profits BUFFALO, N.Y., April 21 /PRNewswire-FirstCall/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended March... Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:03 pm Coach profit drops 29%; dividend initiated NEW YORK (MarketWatch) -- Coach Inc. on Tuesday said that its third-quarter profit fell 29%, hurt by job-cutting and store closing costs and consumers paring back on spending in the face of a U.S. recession. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:03 pm Stocks set for another slide U.S. stocks could be in for another rough ride Tuesday on the heels of the previous session's heavy losses. Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 12:02 pm Versailles Group Announces Accentus, Inc. Acquired by High Road Capital Partners BOSTON, April 21 /PRNewswire/ -- Versailles Group, Ltd. ( href="http://www.versaillesgroup.com/">http://www.versaillesgroup.com ) announced today Accentus, Inc. ( Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:02 pm Korein Tillery Takes Herbicide Atrazine Case to the Court of Public Opinion ST. LOUIS, April 21 /PRNewswire/ -- For Steve Tillery of the law firm of Korein Tillery, the threat of the herbicide Atrazine to our environment and the health of every citizen... Source: RSS feed - channel BNewsBusiness | 21 Apr 2009 | 12:02 pm Earnings: Merck falls short Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 12:01 pm 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 | 21 Apr 2009 | 12:01 pm Opening Bell: 04.21.09 Ratings Companies Lean On First Amendment (WSJ) The Firm's attorneys are claiming they issue opinions, and thus are protected under the first amendment. I would go with totally fabricated bullshit in the place of opinions, but either way it works. "Richard Blumenthal, the Connecticut attorney general, sees it differently. Mr. Blumenthal has filed a lawsuit about ratings issued by S&P, though not in connection with mortgage-backed securities. "The very nature of [rating firms'] so-called speech is very different from the classic First Amendment-protected expression," Mr. Blumenthal says. "It's much more akin to an advertisement that misstates the price of an item on sale than a political candidate on a soapbox."" Loan Quality Big Part Of Stress Tests (Bloomberg) It would be amazing if the Government missed loan quality as a primary point of interest in any "test" that could be performed on banks (results driven or not); I suppose they deserve a bit of a golf clap here for picking up on the obvious. "The person also said the tests don't amount to solvency judgments, noting that estimates of each bank's losses over the coming two years won't necessarily equal the amount of new capital it needs to raise. The goal of the reviews is to keep the major financial institutions lending over the next two years, and to determine how much capital they might need should the economic downturn worsen. Assumptions about capital will be forward-looking, the official said." Inspector General Reams Treasury On Transparency, Potential Fraud (NYT) If you can make it through the 250 pages in one sitting without hemorrhaging you deserve something akin to lottery winnings. Barofsky doesn't save any punches here, nor should he. "Mr. Barofsky also warned that the Treasury's plan might allow investors to double up on government subsidies for buying up troubled assets. The Public-Private Investment Program would have the Treasury invest alongside private investors. But the partnerships would also be able to borrow money from the Fed through "nonrecourse" loans. If the investments flopped, the investors could walk away from the loans and leave taxpayers with most of the losses." EU Drafts To Regulate Hedge Funds 'Almost Worthless' (FT) See, this is the problem with there not being a major intercontinental (global?) military conflict; everyone has time to think of stupid shit. "The leaked draft suggests that the Commission plans to regulate managers of "alternative" funds, rather than the funds directly. This is one of the main objections of the Socialist MEPs and the private-equity industry, who say it would mean that non-EU managers could still operate in the EU, and market their funds, without any effective oversight." UBS Might Be Looking To Sell Hedge Fund Business (Reuters) It appears that the disassembly of UBS is continuing; they're now looking to dump their Alternative & Quantitative Investments line. "Citing unnamed financial sources, the Neue Zuercher Zeitung said a management buyout offer for A&Q, or parts of it, was on the table, which the newspaper said would fit into the bank's strategy of focusing the bank and cutting its risks. UBS was not immediately available for comment on the report. The NZZ said the business had more than $39 billion in assets under management and employed about 350 people worldwide." Source: Dealbreaker | 21 Apr 2009 | 12:00 pm DuPont lowers outlook, sets new job cuts NEW YORK (Reuters) - Chemical maker DuPont reported a 59 percent fall in quarterly profit, trimmed its full-year outlook and said it would cut more jobs as weak economic conditions continued to constrict demand. Source: Reuters: Business News | 21 Apr 2009 | 12:00 pm London Markets: London shares move lower as financials slide Shares of food producers and retailers climb in London on Tuesday, as investors cheer earnings news from companies such as supermarket group Tesco and food producer Associated British Foods. Source: MarketWatch.com - Top Stories | 21 Apr 2009 | 12:00 pm DuPont cuts forecast Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 11:59 am Tesco rings up record profits despite recession (AFP) AFP - Britain's leading retailer, supermarket giant Tesco, on Tuesday announced record-beating annual profits and sales despite a spreading global recession and deepening losses at its US division. Source: Yahoo! News: Business | 21 Apr 2009 | 11:59 am Bank of NY Mellon cuts dividend as profit falls NEW YORK (Reuters) - Bank of New York Mellon Corp lowered its dividend 63 percent to build capital, after a decline in fees resulting from falling equity markets caused first-quarter profit to decline more than expected. Source: Reuters: Business News | 21 Apr 2009 | 11:58 am BlackRock first-quarter profit falls 65 percent NEW YORK (Reuters) - BlackRock Inc , the largest publicly traded U.S. asset manager, said first-quarter profit dropped 65 percent as falling markets pressured revenue. Source: Reuters: Business News | 21 Apr 2009 | 11:57 am European stocks edge ahead (AFP) AFP - European stock markets climbed Tuesday on the back of upbeat corporate and economic news, but Asia was hit by stubborn concerns about the troubled global banking sector, analysts said. Source: Yahoo! News: Stock Markets News | 21 Apr 2009 | 11:55 am Inflation measure turns negative The Retail Prices Index was negative in March for the first time since 1960 while the official measure eased to 2.9%. Source: BBC News | Business | World Edition | 21 Apr 2009 | 11:54 am Top 10 Analyst Upgrades & Downgrades (ATI, APOL, AUO, ABX, BWLD, EXPD, HAL, JCOM, NOK, MTN) These are the ten top analyst calls we have seen early this Tuesday morning with about two hours until the open: Allegheny Tech (ATI) Cut to Sell at Citigroup. Apollo Group (APOL) Started as Buy at Deutsche Bank. AU Optronics (AUO) Raised to Outperform at Credit Suisse. Barrick Gold (ABX) Raised to Overweight at Thomas Weisel. Buffalo Wild Wings (BWLD) [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 11:51 am Merkel holds talks on bank debts German Chancellor Angela Merkel is meeting with officials to determine the best way to deal with the bad debts of the country's banks. Source: BBC News | Business | World Edition | 21 Apr 2009 | 11:49 am Merck profit falls short, shares fall 3 percent NEW YORK (Reuters) - Merck & Co , which plans to buy rival drugmaker Schering-Plough Corp later this year, reported lower-than-expected sales and earnings that it attributed to the global economic slowdown. Source: Reuters: Business News | 21 Apr 2009 | 11:46 am Caterpillar (CAT): No One Wants Big Machines Caterpillar’s (CAT) first quarter results are a pretty good sign that no one wants big earth movers or mechanic machines that can move a small city from one state to another overnight. Revenue at CAT was down 22% to $9.2 billion. The company lost $.19 a share contrasted by a profit of $922 million a year [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 11:45 am Bank of NY Mellon cuts dividend as profit falls (Reuters) Reuters - Bank of New York Mellon Corp lowered its dividend 63 percent to build capital, after a decline in fees resulting from falling equity markets caused first-quarter profit to decline more than expected. Source: Yahoo! News: Business | 21 Apr 2009 | 11:39 am Budget 2009: Eight questions for Alistair Darling on the car scrappage plan Alistair Darling the Chancellor is still deliberating over whether to introduce a 'cashforbangers' scheme in his Budget on Wednesday. Source: Telegraph Finance | 21 Apr 2009 | 11:37 am Merck (MRK): All Bad News Merck released earnings, and cut its forecasts. No wonder. Its Q1 numbers were atrocious. Revenue  for the first quarter of 2009 was $5.4 billion, a decrease of 8%compared to the first quarter of 2008. Net income for the period was $1.4 Billion, compared with $3.3 billion in the first quarter of 2008. Merck is showing the effects of being [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 11:23 am When an 802 credit score isn't enough Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 11:21 am Bailout cop busy on the beat The top cop tracking the government's $700 billion bailout program said Tuesday that he has opened 20 criminal investigations and six audits into whether tax dollars are being pilfered or wasted. Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 11:18 am ABF profits fall 33% as grocery costs rise Britons' appetite for discount fashion failed to stem a 33 per cent slump in profits at Associated British Foods (ABF), owner of Primark, due to the high cost of produce. Source: Latest Business News from Times Online | 21 Apr 2009 | 11:18 am Give yourself a tax cut Taxes may be rising but you can cut your bill. Source: Telegraph Finance | 21 Apr 2009 | 11:17 am United Tech earnings fall 27.8 percent BOSTON (Reuters) - Diversified U.S. manufacturer United Technologies Corp reported a 27.8 percent fall in quarterly profit as a slumping economy crimped demand for its jet engines and air conditioners. Source: Reuters: Business News | 21 Apr 2009 | 11:16 am Retiring in 2 years? Recoup your losses Question: I plan to retire in about two years, but I've lost a lot in my retirement savings account. Currently my money is spread out over small and midcap stocks, growth shares and safe investments. But I'm thinking of moving my balance to an account that tracks the Standard & Poor's 500 index, riding the upswing until the S&P hits 1,100 or 1,200 and then diversifying into something safer. Do you think this is a good plan? --Alan W., Raleigh, North Carolina Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 11:03 am Tesco achieves £3bn annual profit The supermarket chain Tesco reports record annual profits of £3.13bn, up 10% from last year, despite the recession. Source: BBC News | Business | World Edition | 21 Apr 2009 | 11:02 am Best deals of the day: Photographic printing Save on plants and garden equipment from Wyevale garden centres. Source: Telegraph Finance | 21 Apr 2009 | 11:01 am Budget 2009: How should Chancellor Alistair Darling start his speech? Reading the opening lines of Gordon Brown's Budget speech in 2007 is like watching cartoon character Wile E. Coyote running off a cliff after the Road Runner his legs furiously pumping long after he's run out of solid ground. Source: Telegraph Finance | 21 Apr 2009 | 10:59 am Should I contribute to my 401(k) without a match? Q. My company just announced that it is suspending its 401(k) match. Is it still worth contributing? Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 10:58 am Obama's $100 million cut: 'Symbolic' President Obama told his Cabinet on Monday to come up with ways to collectively cut $100 million from their agencies' budgets. Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 10:56 am Treasury prices mixed Treasury prices were mixed Tuesday as the Federal Reserve prepares to buy more U.S. debt and stocks appeared set to recover some ground. Source: Business and financial news - CNNMoney.com | 21 Apr 2009 | 10:53 am Weak pound boosts Burberry's UK sales The weak pound helped Burberry to strong UK sales with tourists snapping-up its trench coats and quilted puffa jackets despite the recession. Source: Latest Business News from Times Online | 21 Apr 2009 | 10:51 am Ex-Yukos chief pleads not guilty Russian ex-tycoon Mikhail Khodorkovsky pleads not guilty to new embezzlement and money laundering charges in Moscow. Source: BBC News | Business | World Edition | 21 Apr 2009 | 10:46 am Budget 2009: Origins of the Budget The origins of the Exchequer go back to the Norman period 10661154. Source: Telegraph Finance | 21 Apr 2009 | 10:43 am European markets rise after strong German survey (AP) AP - European stock markets rose Tuesday despite earlier big losses in Asia, after encouraging economic news from Germany and better than expected profits from British supermarket chain Tesco PLC. Source: Yahoo! News: Stock Markets News | 21 Apr 2009 | 10:39 am Gloomy report hits Toyota shares A Japanese report says carmaker Toyota will cut its domestic workforce as production hits a 30 year low. Source: BBC News | Business | World Edition | 21 Apr 2009 | 10:38 am Banks pledge to increase lending to businesses Banks expect to increase lending to businesses over the coming months, according to a new report from the Bank of England, providing a fresh boost to its efforts to unfreeze the economy. Source: Latest Business News from Times Online | 21 Apr 2009 | 10:23 am DuPont (DD) Earnings Collapse On Flagging Demand, Firm Cuts Forecasts DuPont ((DD) had nothing good to say about its earnings other than that they were in line with its expectations. The firm announced that net income for the first quarter 2009 was $488 million versus $1,191 million in the prior year. Consolidated net sales in the first quarter of $6.9 billion were 20% lower than prior [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 10:19 am Australia seen to be in recession The Australian economy is probably already in recession, the head of the country's central bank says. Source: BBC News | Business | World Edition | 21 Apr 2009 | 10:12 am Japan To Raise $109 Billion, Test Appetite For Sovereign Debt Japan intends to raise $109 billion. It needs the money to try to halt the slide of its economy which, so far, has performed worse the most in Europe and North America. The market for raising sovereign debt is getting crowded, with the US pushing Treasuries at a record rate and the UK and other large EU [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 10:10 am Bail-out 'risk' for US taxpayers A watchdog monitoring the US's $700bn bail-out plan for banks says aspects could be "unfair" to taxpayers. Source: BBC News | Business | World Edition | 21 Apr 2009 | 10:01 am Running The TARP On A Whim And A Prayer Banks like Goldman Sachs (GS) are saying they want to pay their TARP loans back. They are financially healthy and don’t want the government restrictions that being in the program brings. The Administration believes that it is the best judge of whether to allow the money to repaid, which means bank executives at public companies once [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 9:59 am Vauxhall's 5,000 UK jobs at risk in GM sale deal Vauxhall’s 5,000 UK employees are waiting to learn if they will keep their jobs as it emerged last night that General Motors (GM), the American parent company, was prepared to sell the business at a knockdown price. Source: Latest Business News from Times Online | 21 Apr 2009 | 9:47 am The state of the economy under Labour How public borrowing sterling and the gilt yield have fared since Labour took office in 1997. Source: Telegraph Finance | 21 Apr 2009 | 9:40 am The Administration Give GM (GM) And Chrysler Another Chance The Administration is losing it grip on the process of restructuring the auto industry. It has let another deadline pass and will supply more  money to Chrysler and GM (GM) as they allegedly finalized the programs to remain viable. The government had indicated that it will let the two car companies move into bankruptcy, but the [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 9:39 am In pictures: top words of previous Budgets The most popular words used in Budget speeches for the past 11 years. Source: Telegraph Finance | 21 Apr 2009 | 9:32 am Who Stole The Recovery? The recovery from the recession looked fine until late last week. Some of the data from the government and associations that keep track of economic indicators got a bit worse. But, that was not the tipping point. What was is when analysts started to take data that was a day or two old and spin [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 9:17 am The Futility Of Great Journalism The Detroit Free Press, one of the old city dailies, on the brink of extinction and in the shadow of the failing car industry, won a Pulitzer Prize for reporting. Last year, the paper published text messages between the city’s mayor, Kwame Kilpatrick, and his female chief of staff. The mayor went to jail. The Free [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 21 Apr 2009 | 9:07 am Where PepsiCo goes Coke may have to follow PepsiCo's game of spin the bottler has come full circle. Source: Telegraph Finance | 21 Apr 2009 | 9:06 am Sales up at 'first class' Primark Discount UK fashion retailer Primark reports another rise in sales, as its low prices continue to attract consumers. Source: BBC News | Business | World Edition | 21 Apr 2009 | 9:01 am London stocks steady at open (AFP) AFP - Shares in London steadied in opening trade on Tuesday after strong earnings from retailer gave investors some relief. Source: Yahoo! News: Stock Markets News | 21 Apr 2009 | 9:01 am Deflation: What is it? Deflation is a sustained decrease in the general price level of goods and services. Source: Telegraph Finance | 21 Apr 2009 | 8:44 am UK falls into deflation for first time in 50 years Q&A: What is deflation? Source: Latest Business News from Times Online | 21 Apr 2009 | 8:36 am Asian stocks fall on bank fears Asian shares fall sharply, echoing declines in the US caused by renewed concerns about the world's banks. Source: BBC News | Business | World Edition | 21 Apr 2009 | 8:17 am India surprises by cutting interest rates India made a surprise cut in interest rates today in the wake of a dramatic slowdown in economic growth. Source: Latest Business News from Times Online | 21 Apr 2009 | 8:17 am Treasury asset plan vulnerable to abuse: watchdog WASHINGTON (Reuters) - The U.S. Treasury's plan to purge toxic assets from banks' balance sheets is vulnerable to fraud and abuse and needs tough rules against conflict of interest, the government's bailout watchdog said on Tuesday. Source: Reuters: Business News | 21 Apr 2009 | 8:08 am Geithner faces critical report on bail-out Tim Geithner, US Treasury secretary, will face lawmakers in Congress hours after publication of a report that criticises aspects of the bank bail-out and days before stress test results that could lead to the government taking larger stakes in the financial ­sector Source: Financial Times - US homepage | 21 Apr 2009 | 7:14 am Chrysler Financial rejects $750-million government loan Executive pay limits in exchange for the cash were a factor, sources say. The lender to auto dealers and customers denies the claim. It opted to use more expensive financing from private banks. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Store location helps, but there are other ways to draw customers Dear Karen: I'd like to open a mini import goods store. How important is location? Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am Bank of America shows a profit but loses half a billion dollars on mortgages The balance sheet shows the difficulty facing BofA and other financial institutions -- despite help from the federal stimulus and bailout programs. And the pain may get worse. Goodbye to the mortgage meltdown? Not so fast. Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am Sen. Christopher Dodd benefits from 'payday loan' industry The lawmaker praised for taking on credit card providers over predatory lending practices has raised more than $44,000 from pawnshop owners and other businesses that provide high-interest loans. Sen. Christopher J. Dodd (D-Conn.), who has won praise from consumer groups for taking on credit card providers over predatory lending practices, has collected thousands of dollars in donations from people affiliated with the so-called payday loan industry. Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am U.S. aims to crack down on credit card issuers The Obama administration vows new rules to curb high interest rates and predatory practices. It faces stiff opposition from the industry. The Obama administration is moving to rewrite the rules of the game for credit card lenders, vowing to crack down on high interest rates and predatory practices it says contributed to the economic crisis. Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am Stocks fall over outlook for banks Wall Street's six-week rally hits a wall. The Dow tumbles 289 points as Bank of America's earnings report raises concern. The stock market's booming six-week rally ran smack into the head winds of a still-weak economy. Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am With IBM out, Oracle jumps in to buy Sun for $7.4 billion Oracle's deal, in which it will pay $9.50 in cash for each Sun share, pushes the total value of all acquisitions Monday to $16 billion. Oracle Corp., whose lucrative corporate software business has lined its coffers with billions of dollars, on Monday snatched up Sun Microsystems Inc. for $7.4 billion in cash, pushing the total value of all acquisitions that day to $16 billion and raising hopes that U.S. companies are cranking up their acquisition engines once again. Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am Choosing alternatives to layoffs Some owners are cutting employees' hours and pay in a bid to keep their companies alive and workforces intact for better times. But the strategy carries risks. The women and men, gently prodded by a facilitator, opened up about their daily inspirational practices: Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am Store location helps, but there are other ways to draw customers Dear Karen: I'd like to open a mini import goods store. How important is location? Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Sen. Christopher Dodd benefits from 'payday loan' industry The lawmaker praised for taking on credit card providers over predatory lending practices has raised more than $44,000 from pawnshop owners and other businesses that provide high-interest loans. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Stocks fall over outlook for banks Wall Street's six-week rally hits a wall. The Dow tumbles 289 points as Bank of America's earnings report raises concern. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am The automakers' tunnel of love is a cause for reflection The decline in the number of car commercials shot there is another sign of tough times in the automotive industry. Economists have lots of ways to measure the woes of the auto industry. There's the decline in the seasonally adjusted annual sales rate, the increased days of inventory and the bailout billions. To these I would add one more: the Tunnel Index. Source: L.A. Times - Business | 21 Apr 2009 | 7:00 am U.S. aims to crack down on credit card issuers The Obama administration vows new rules to curb high interest rates and predatory practices. It faces stiff opposition from the industry. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Bank of America shows a profit but loses half a billion dollars on mortgages The balance sheet shows the difficulty facing BofA and other financial institutions -- despite help from the federal stimulus and bailout programs. And the pain may get worse. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am With IBM out, Oracle jumps in to buy Sun for $7.4 billion Oracle's deal, in which it will pay $9.50 in cash for each Sun share, pushes the total value of all acquisitions Monday to $16 billion. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Retail gasoline prices barely budge for a second week A year after pump prices had already begun to soar toward records, they increase by an average of less than a penny a gallon in California and nationally. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Choosing alternatives to layoffs Some owners are cutting employees' hours and pay in a bid to keep their companies alive and workforces intact for better times. But the strategy carries risks. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am The automakers' tunnel of love is a cause for reflection The decline in the number of car commercials shot there is another sign of tough times in the automotive industry. ... Source: RSS feed - channel BNPaperBusiness | 21 Apr 2009 | 7:00 am Australian stocks: Market closes sharply lower MELBOURNE - The Australian share market closed sharply lower on Tuesday following a steep drop on United States markets where investors were again unsettled by the health of banks. The local bourse fell as Reserve Bank of Australia... Source: New Zealand Herald - Business | 21 Apr 2009 | 6:59 am Rate cut by Indian central bank The Reserve Bank of India cuts a key interest rate as it aims to lift an economy slowing in the face of the global recession. Source: BBC News | Business | World Edition | 21 Apr 2009 | 6:21 am Tesco reports record £3 billion profit Tesco, Britain's biggest supermarket chain, posted record annual pre-tax profits of £2.95 billion today and revealed that it had notched up more than £1 billion in sales for each week of the year. Source: Latest Business News from Times Online | 21 Apr 2009 | 6:18 am NZ stocks: Telecom gain limits market losses The New Zealand sharemarket tumbled in early trading after heavy falls in overseas markets, but a solid performance from top stock Telecom limited further losses. The benchmark NZSX-50 index closed down 33.94 points, or 1.3 per... Source: New Zealand Herald - Business | 21 Apr 2009 | 6:14 am U.S. to give Chrysler, GM new aid (Reuters) Reuters - The Obama administration will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General Motors Corp restructure outside of bankruptcy, an independent oversight report on the Treasury Department's corporate rescue fund said on Tuesday. Source: Yahoo! News: Business | 21 Apr 2009 | 5:57 am U.S. to give Chrysler, GM new aid WASHINGTON (Reuters) - The Obama administration will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General Motors Corp restructure outside of bankruptcy, an independent oversight report on the Treasury Department's corporate rescue fund said on Tuesday. Source: Reuters: Business News | 21 Apr 2009 | 5:57 am Currency: Dollar rebounds after sharp decline The New Zealand dollar recovered from one-month lows after its hefty slide overnight, but further falls are on the cards if US stocks continue to decline. Large losses on Wall Street spilling over to world markets helped boost... Source: New Zealand Herald - Business | 21 Apr 2009 | 5:41 am Stock markets hit by BofA's bleak forecast US stocks suffered their worst one-day fall in six weeks as Bank of America spooked investors in financial shares by painting a bleak picture of economic conditions in the months to come, with Asian shares extending the losses Source: Financial Times - US homepage | 21 Apr 2009 | 5:01 am Nuplex rights issue falls short by 4pc Chemicals manufacturer Nuplex Industries said today its rights offer was undersubscribed by 4.09 per cent, or $5.4 million, which would be taken up by underwriters First NZ Capital and sub-underwriters. The $132.8m pro-rata renounceable... Source: New Zealand Herald - Business | 21 Apr 2009 | 4:50 am Sky City raising $214 million, sticks with profit guidance Sky City Entertainment Group has announced a $214 million capital raising today and despite a deepening recession said it was confident of meeting annual profit forecasts. The casino operator said it was carrying out a share placement... Source: New Zealand Herald - Business | 21 Apr 2009 | 4:00 am Getting the Most Out of College Rewards Cards (Deal of the Day) Forget the free roundtrip tickets to Florida or the flat-screen TV. When used properly, credit card rewards programs can help you pay for a far pricier purchase: college tuition. Pay for a meal using the Futuretrust MasterCard (MC) and get up to 15% of the tab's total directly deposited into a 529 college savings account. The Fidelity Investments 529 College Rewards American Express (AXP) credit card allows you to earn points toward a cash deposit into a Fidelity-managed college savings plan. And holders of the BabyMint Platinum Visa (V) can get their rewards deposited into a 529 or use them to pay off a student loan. While such deals may sound like a great way to sock away a little extra cash toward tuition, rewards cards come with plenty of pitfalls -- including sky-high interest rates. Fidelity Investments' card carries a 16.99% annual percentage rate (APR) for purchases and BabyMint’s ranges between 10.24% and 16.24%. In fact, to make sure you're saving more money for college than you're paying in interest, you’ll have to pay each balance in full and on time each month, says Christine Moriarty, a fee-only certified financial planner in Bristol, Vt. Want to get even more tuition dollars out of your card? Try these tips. Sign Up Early Rewards can take several years to add up so it's best to sign up for a college rewards card when a child is in elementary school or even younger. A family with a five-year-old child that makes $4,000 in purchases each year on a card that offers 2% back on each dollar spent will earn an extra $1,040 in rewards by the time their child goes to school. Comparison Shop APRs Ask the credit-card issuer what interest rate they would charge you based on your credit score (they’ll often give you a range). Remember that rates are usually variable and subject to change. Check out cardratings.com and billshrink.com to compare credit-card offers. Read the Fine Print on Rewards Driving 20 miles out of your way to use a card at a participating retailer is probably not the ideal way to save for Junior's education. Seek out cards that offer rewards for shopping at national retailers and at shops that you can easily visit, says Curtis Arnold, founder of CardRatings.com, a credit-card comparison web site. Also, look at the rewards the card offers. Anything less than 2% of purchases in rewards will make accumulating significant savings difficult. Know Where the Money Goes Many college rewards cards automatically stash whatever you earn into a 529 plan. But that convenience comes at a price. Sometimes, the credit card’s issuer only permits you to open a 529 plan that they manage, which means there could be management fees or other costs involved. Pass on plans with management fees that are higher than 1.5%, says Harold Simansky, investment advisor at Brookline, Mass.-based Simansky Investments. Also, look at the plan’s investment allocation and its performance track record -- both short and long term. Keep in mind that many of these plans have taken a hit over the past several years. You may find that contributing directly to your state’s plan -- especially when the state offers a tax break, like Vermont, Colorado and Connecticut do -- could offer better savings than a rewards program, so be sure to compare the investments first, says Moriarty. Inquire About the Card’s Future There’s no guarantee that the credit card won't get canceled. In fact, many credit-card issuers are slashing their rewards programs altogether, says Arnold. Ask the credit-card issuer what will happen to your rewards should the card get suspended. In most cases, the rewards that have been deposited in your account will remain untouched. But the outstanding rewards (those that you've earned but have yet to be deposited) could be in question.
Card	Annual Percentage Rate	Rewards	Where the Rewards Go
* None of these cards have annual fees or impose limits on how many rewards you can earn per year. ** To receive the Upromise credit card rewards you need to have a good credit score and you must be a Upromise member. To sign up for free, click here.
Upromise World MasterCard**	9.24% to 13.24% for purchases	Upromise offers two cards both of which offer 1% on most purchases and an extra 10% on purchases made at some 21,000 grocery and drugstores. The gas and grocery rewards credit card offers an extra 2% on gas at participating ExxonMobil locations. And the dining and grocery rewards credit card offers 10% extra rewards at some 8,500 participating restaurants. Earn a $25 savings bonus after you use the credit card to make your first purchase within 90 days of opening the account.	You can set up a Upromise 529 account where rewards will be deposited or you can request to receive a check for cash. Graduates can also link their Upromise account to a Sallie Mae student loan to help them pay off their balance. Rewards are doled out once a quarter assuming you've earned at least $25.
BabyMint Platinum Visa	10.24% to 16.24% for purchases	Earn 1% on nearly every dollar you spend and between 1% and 26% when you shop from more than 300 participating BabyMint retailers.	Rewards can be sent by check or put directly toward a student loan. In most cases, rewards can be deposited into 529 plans that accept payments from third parties and Coverdell educational savings accounts. Family and friends can also contribute their rewards to your account.
Futuretrust MasterCard	8.99% to 14.99% for purchases	Earn 1% on all purchases and up to 10% at participating retailers. (Rewards may change at any time.) You can also earn up to 15% at restaurants throughout the country as well as discounts while dining there.	In most cases, credit card holders have to be enrolled in a 529 savings plan offered by Futuretrust or provide account information for their existing 529 plan in order to receive their rewards.
Fidelity Investments 529 College Rewards American Express	16.99% for purchases	Earn two points for every $1 spent. Once you reach 5,000 points, they can be converted at a rate of 1% (or $50) into an eligible Fidelity account that you choose or you can redeem them (for a $25 check). To do the latter, click here and after you create a login, select the Fidelity rewards link. (The minimum required points to redeem rewards for cash are 2,500, which will be a $12.50 check.)	Points can be deposited into an eligible Fidelity account, which includes Fidelity-managed 529 plan accounts that accept the deposits. Or you can redeem them for cash.

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.

Wall Street Braces for Earnings Rush (Market Update)

News at a Glance

• Number Crunch: Five Dow components reporting today.
• Set to Bounce: Futures rise in the wake of selloff.
• Recovery Predicted: Fed official says this year.
• Autos Saved (Again): New bailout funds for Detroit.

The Lowdown

Wall Street is poised for a bounce.

A day after a heavy selloff, stocks were set to rebound as bargain hunters awaited a fat stack of earnings reports from five Dow components and welcomed some cheerleading from the Federal Reserve. Shortly after 6 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

Tuesday's session should be all about earnings. Caterpillar (CAT), DuPont (DD), Coca Cola (KO), Merck (MRK) and United Technologies (UTX) are all releasing quarterly numbers today, and those are just the blue chips. Earnings have come in largely better than expected, particularly among financials and techs. Traders will be anxious to see whether analysts had underestimated other industries.

IBM caught the Street off guard Monday after the closing bell. The firm posted an 11% drop in first-quarter sales, but higher margins carried the bottom line above analysts' expectations.

In economic news, Federal Reserve Vice Chairman Donald Kohn predicted the economy could begin to recover as soon as this year. The stabilization of the housing market and consumer spending and promising signs from the financial sector could lead to a "gradual" return to growth, he said. Kohn added that the Fed remains "acutely aware" of the inflationary risk that could accompany a bounce.

In world markets, Asia finished lower concerns over the financial and telecom sectors. Japan's Nikkei dropped 2.4%, while Hong Kong's Hang Seng lost 3.0%.

Corporate News

• General Motors (GM) will receive as much as $5 billion in additional funds from the federal government between now and June to carry the firm through restructuring without declaring bankruptcy, according to a watchdog report on the Treasury's corporate bailouts cited by Reuters. The government has also pledged $500 million to support Chrysler through April as the firm seeks a deal with Fiat.
• IBM (IBM) posted an 11% decline in first-quarter revenue, as more corporations trimmed their technology outlays in the recession. Still, cost controls helped the firm beat the Street. IBM earned $2.30 billion, or $1.70 a share, down slightly from $2.32 billion, or $1.64 a share, in the year-ago period (The number of shares outstanding declined over the last year.). Analysts had been looking for earnings of $1.67 a share.
• Texas Instruments (TI) topped analysts' expectations for first-quarter sales after a surge in demand for its chips in China. The firm also projected second-quarter sales of $1.95 billion to $2.40 billion, which would meet or exceed estimates.

The Economy

• There are no substantial economic reports scheduled to be released today.

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Six Stocks Priced for Takeovers (Screens)

At one point in the first quarter, U.S. stock prices reached their lowest level since 1996. Company takeover activity should have soared -- buy low, right? It’s not like potential suitors couldn’t afford to shop. Cash hoarding among companies is near record levels. (For details, see “The Money, Hand It Over” in the forthcoming issue of SmartMoney Magazine.)

Of course, companies didn’t buy low. The dollar amount of transactions increased versus a year ago only because of two giant drug deals -- Pfizer’s (PFE) $68 billion purchase of Wyeth and Merck’s (MRK) $41 billion acquisition of Schering-Plough. The number of transactions plunged 30%. Poor timing perhaps helps explain why studies have long shown that in the average company takeover, the buyer squanders stockholder money, and that the more cash they’re sitting on at the time of the deal, the more they tend to lose. Now, with stocks up about 25% from their March low, deal announcements seem slightly more plentiful. Monday alone brought at least five of them, including Oracle’s (ORCL) agreement to buy Sun Microsystems (JAVA) for $7.4 billion.

Whether stocks soar, swoon or stall for the rest of the year, it might pay to snap up shares of companies that look like takeover candidates today. If buyout offers materialize, shareholders of the pursued often (but not always) cash in nicely. If no offers appear, shareholders can still make money, since many of the attributes that make a company a takeover target are ones that make it a worthwhile stock. Chief among these are a skimpy valuation and an ability to generate plenty of excess cash.

The list below is made up of just such companies. They have low enterprise values (the cost to buy all of a company’s shares and pay off its debt, while using its cash) relative to their Ebitda (earnings before interest, taxes, depreciation and amortization — a gauge of underlying profit potential). They also have low share prices relative to the free cash they clear. And all pay dividends, which does nothing for suitors but should help keep stockholders happy in the all-too-likely event that offers don’t emerge.

Joy Global (JOYG) made the cut. Now seems a worrisome time to hold shares of the Milwaukee maker of mining equipment. Demand for steel and coal are off amid a manufacturing slowdown, and U.S. politics seem to have shifted in favor of carbon regulation, which could dampen coal demand more. But Joy is financially strong and is quickly trimming costs, and its shares fetch just six times forecast earnings for its fiscal year ending Oct. 31. Also, demand for coal-mining equipment in China and India seems all too likely to help offset a slowdown in the U.S.

Biovail (BVF) shares peaked at more than $27 in 2006. That year, the Ontario drug maker’s blockbuster antidepression pill, Wellbutrin XL, began facing generic competition. By last October, shares of Biovail dipped below $8. They’ve rebounded to $10 and change, but still seem underpriced. Wellbutrin XL sales plunged 43% last year, but total company sales fell only 10%, and current products look promising. Costly Xenazine, used to combat jerky, involuntary movements associated with Huntington’s disease, is selling better than expected. Zovirax, for herpes, has a new sales partner and a better cut for Biovail. Shares go for nine times earnings. The dividend looks suspiciously high, at over 13%, with a payment equal to more than the company will likely earn this year. But while the company is unlikely to keep paying that amount for long, it can afford to pay plenty, with no debt and cash and equivalents equal to 18% of its stock price.

Screen Survivors TickerCompanyIndustryShare
PriceEV/EbitdaPrice/FCFYield
(%) ALVAutolivAuto Parts$25.163.695.533.34 BVFBiovailDrug Delivery11.054.339.5913.57 ITWIllinois Tool WorksDiversified Machinery32.225.318.613.85 JOYGJoy GlobalMining Equipment24.414.556.842.87 NAFCNash-FinchWholesale Food29.815.774.772.42 PPDIPharmaceutical Product DevelopmentMedical Labs & Research23.796.738.992.10

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10 Things Hospital CEOs Won't Tell You (10 Things)

1. “I’m a CEO first and a health-care professional second.”

With 46 million uninsured Americans and major health care reform possibly ahead, the roughly 5,000 CEOs at U.S. community hospitals aren’t in an enviable position. In the 1980s, almost all hospital heads held advanced degrees in health administration, but the American College of Healthcare Executives says more than one in four of its member CEOs now has an MBA, which president Tom Dolan thinks has “advantages and disadvantages.” One plus: Business savvy sure helps in the $1 trillion U.S. hospital industry.

But along with that have come less welcome changes, like Wall Street–style salaries and perks. Gary Mecklenburg, former CEO of Chicago’s Northwestern Memorial Hospital, was paid $16.4 million from September 2005 to October 2006, including a nearly $11 million retirement bonus. A Northwestern spokesperson says the hospital complies with IRS standards of “fair and reasonable” compensation. Cathy Glasson, a nurses union leader in Iowa, says only recently have hospitals internally begun calling patients “consumers” or “clients.” “Even that small shift hints at today’s business model,” she says. “Focus less on care and more on profits.”

2. “Just because we’re nonprofit doesn’t mean we’re good guys.”

These days, even nonprofit hospitals have become more entrepreneurial. Executives have all but replaced the nuns who once ran Catholic hospitals, and at least a few facilities have upped prices to several times what procedures cost. What’s more, even though nonprofit hospitals get roughly $12.6 billion in annual tax breaks and billions more in government subsidies in exchange for community service, there’s no standard for how much free care they must provide. Studies show many hospitals don’t give enough free care to equal their tax breaks, and figures they report can be misleading. For instance, many facilities claim the amount they bill for a service instead of what it costs to provide it.

The Service Employees International Union recently criticized Beth Israel Deaconess Medical Center in Boston for reporting bad debt (unpaid bills for which it had already been partially compensated by the state) as charity care, inflating its free-care figure by about 20 percent. A Beth Israel spokesperson says hospital auditors have “never found any cause for concern.” And no wonder: The hospital was acting in accordance with IRS regulations.

3. “Who says you can’t haggle for health care?”

After media coverage about how they often accept lower payments from insurers while charging higher list prices to the uninsured, hospitals are now more open to bargaining. So how can you take advantage? For starters, many facilities have financial counselors who can set up no-interest payment plans or adjust prices based on financial need—all you have to do is ask. Or team up with an outfit such as North American Surgery—which pairs patients willing to pay up front with small hospitals willing to give discounts—and you could save up to 80 percent on common procedures like bypass surgery.

Kelly Proffitt, a 39-year-old teacher in Bassett, Va., knows the benefits of bargaining. In May, when her mother got a $12,000 bill from a hospital after spending almost a week there with a near-fatal blood infection, Proffitt hired a health-care advocate—a private individual, often with insurance experience, who helps tackle charges. Weeks later, the hospital offered to cut the bill by 80 percent. The advocate “found strings to pull we didn’t even know existed,” Proffitt says. To follow her example, visit www.billadvocates.com to find your own bill bargainer.

4. “If we build it, you will come.”

The hospital industry is in the midst of a building boom, having spent more than $100 billion on construction from 2002 through 2007, double the amount from the previous five years. Hospital executives argue that they’re trying to make patients more comfortable, but critics claim much of the work is unnecessary, “like putting waterfalls in the lobby,” says Maggie Mahar, author of Money-Driven Medicine. “And that cost trickles right back down to consumers.”

What’s more, when construction increases the number of hospital beds, doctors tend to fill them and charge accordingly. Researchers at Dartmouth University have repeatedly found that patients with chronic conditions spend more time in the hospital in areas with more hospital beds per capita. And during the last months of life, patients in bed-glutted regions like Miami spend 20 days in the hospital on average, compared with six days elsewhere.

The upshot for patients? “Researchers have never found all that extra care is producing better health outcomes,” says Paul Ginsberg, president of the Center for Studying Health System Change. “In some cases, outcomes are actually somewhat worse.”

5. “We don’t like competition, especially from doctors.”

Tensions are up between hospital executives and doctors, especially since many physicians have begun opening small outpatient-surgery centers or mini hospitals in direct competition with big hospitals. The CEOs worry such facilities—which often focus on profitable specialties like liver transplants—will shear off the most high-paying, wellinsured patients.

Orthopaedic surgeon William Reed has felt the blowback: In 2003, when he and 21 colleagues opened Heartland Spine & Specialty Hospital in Kansas City, Kan., he said the six biggest insurance firms in the area stopped talking to him about adding the facility to their networks. When Reed filed suit alleging tortious interference and civil conspiracy, his lawyers uncovered e- mail showing several large local hospitals had told the insurers they didn’t want them working with Heartland. One hospital allegedly said it would drop an insurer that did. Five hospitals settled for undisclosed sums in spring 2008; the one that allegedly threatened to drop an insurer says its contracting uses a “thorough, lawful approach.” But says Reed, “They were trying to find a way to choke me right out of business.”

6. “It ’s all about PR.”

You can hardly log on to a hospital’s website without a logo proclaiming it “one of the country’s best.” Rankings have proliferated in recent years and are now offered by such varied sources as the for-profit firm HealthGrades and magazines like U.S. News & World Report. The problem is, consumers still don’t know how to assess and research hospitals adequately, says Howard Peterson, managing partner of hospital-consulting firm TRG Healthcare, so “image becomes everything.” That’s why each year when hospital rankings that factor in the reputation of a facility within the health care community get compiled, “I can’t even tell you how many e-mails I get wanting my vote,” Peterson says.

How to find reliable rankings? For starters, look closely at what goes into these calculations. For example, a facility may label itself “best hospital” when only one division (say, ophthalmology) has won an award. Among rankers, HealthGrades (www.healthgrades.com) bases its ratings on more than 90 individual procedures and lets you access ratings based on mortality or complication rates of patients, as well as data on safety and what the hospital charges.

7. “You might be paying for the guy in the next bed.”

Hospital CEOs tend to focus on “the mix of privately insured and Medicare patients at their hospitals,” says Leah Binder, CEO of industry monitor The Leapfrog Group. And for good reason: Because Medicare reimbursements barely cover the cost of procedures, privately insured patients and their insurers often pay more to compensate. One study by PricewaterhouseCoopers predicted that by 2009, one of every four dollars spent by private insurers would cover such cost shifting. That can lead to some pretty outrageous charges. For example, says consumer advocate Nora Johnson, many hospitals bill about $30,000 for appendectomies when the cost to do the procedure is more like $4,200. (Insurers negotiate prices, usually somewhere between those two benchmarks.) But because it isn’t easy to compare prices, Johnson says there are “no checks and balances to keep hospitals from marking things up as much as they want.”

Richard Clark, CEO of the Healthcare Financial Management Association, a professional group for hospital CFOs, says it’s “frustrating” to hear arguments that pricing is arbitrary, since hospitals painstakingly adjust prices based on the number of patients covered by government programs and on market forces.

8. “Our mergers can be pretty messy.”

The hospital industry has been rapidly consolidating since the 1990s, with more than 100 merger-type deals announced or completed in 2007 alone. What does this mean for consumers? When a hospital buys another one close by, prices can jump more than 40 percent. That’s because big chains have more leverage to demand higher rates from insurers, says Robert Town, professor of health policy at the University of Minnesota.

Hospitals say mergers ultimately help them improve quality—they’ll spend more on care and less on backoffice needs. But the process can cause customer-service snafus and occasionally compromise quality. Hospital consultant Corbett Price says it’s “very common” for hospitals to have problems coordinating accounting systems after a merger, which can result in duplicate or flawed bills, for example. And since mergers gobble up competition, some critics say hospital CEOs no longer feel they have to address black marks—like low nurse-to-patient ratios—to compete.

Price urges concerned consumers to talk with their primary-care doctor about changes at a newly merged hospital and make sure the facility remains accredited by checking www.jointcommission.org. Another option: Wait at least three months for the dust to settle before going back to that hospital.

9. “If it were up to me, we’d be doing more breast implants.”

With more hospitals focused on financial survival, many are pushing the most profitable types of care. Nowhere is this trend more apparent than in advertising: A 2005 study of top academic medical centers’ ads found that 29 percent of those focused on specific treatments touted cosmetic procedures, while another 38 percent focused on experimental (read: high-priced) services like deep-brain stimulation for Parkinson’s disease.

Critics worry hospitals are becoming dangerously out of sync with the needs of the public. Author Mahar says ERs are often crowded because hospitals don’t want to expand this low-profit unit. Poor financials also explain why the U.S. doesn’t “have nearly enough burn units,” she says, and why more than threequarters of hospitals don’t offer palliative care. Clark says that while a focus on building up profitable parts of facilities is “definitely going on,” nonprofit hospitals also focus on “making sure they are still providing the services the community needs while making a hospital financially sustainable.”

10. “We don’t like you poking into our business.”

Things have improved in recent years, but consumer advocates trying to make data publicly available on such topics as staph infection rates in hospitals often describe a multiphased process of resistance. “First the executives just flat-out oppose you,” says Denise Love, executive director of the National Association of Health Data Organizations. “Then they say they love the idea but begin attacking the data points and methodology.”

At HealthGrades, Chief Medical Officer Samantha Collier says she gets calls “at least once a week” from hospital CEOs or their underlings complaining about everything from her methodology to where they fall in the hierarchy of rankings. Granted, hospital execs have some legitimate concerns: For example, there’s the issue of whether hospital researchers and raters are properly adjusting data to be easier on facilities seeing the toughest cases and thus posting higher mortality rates. But Mahar says hospitals’ stake in keeping the public underinformed is mostly business savvy. “CEOs realize that patients walk away [from the hospital] knowing whether they like the food and the view,” she says. “They’ve got no idea if they actually got good quality health care.”

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.

A Fertilizer Play That Is Dirt Cheap

THE PROMISE OF SPRING IS EVERYWHERE -- except in Agrium shares. Like other fertilizer companies, Calgary, Alberta-based Agrium (AGU) rode the boom in crop prices to unprecedented heights, only to plummet last year when commodities, agricultural and otherwise, went bust. In less than a year, most fertilizer stocks lost more than 60% of their value, which for Agrium meant a nose dive to $22 from $113. The stock now changes hands at 41.

Look closer, however, and it is apparent Agrium's spring awakening is merely delayed. Demand for fertilizer, which tends to track corn prices, is likely to rebound as the global economy improves. In the meantime, the company is expanding its network of more than 870 retail farm centers in North and South America, in order to help reduce its dependence on commodity prices. A pitched battle for fertilizer rival CF Industries (CF) may be distracting investors from Agrium's sunnier prospects, but a victory surely would make Wall Street take notice.

One thing is clear: Based on multiple metrics, Agrium is dirt cheap. The stock trades for just 6.8 times this year's expected earnings of $6.11 a share and 5.8 times Wall Street's 2010 forecast of $7.14, well below other fertilizer stocks -- and the company's historic multiple of 14 times future profits. The shares fetch one to 1.5 times book value, less than half their five-year average.

Richard A. Kelertas, an analyst at Dundee Capital Markets, cited such discounts when he initiated coverage of Agrium in January with a Buy rating. He later raised his 12-month price target for the Toronto-listed shares (AGU.Canada) to 61 Canadian dollars, some 21% above their recent C$50.47. (One Canadian dollar is about 82 U.S. cents.)

"The world has been on a wild ride, but agriculture probably has been the least wild of the bunch," says 57-year-old Chief Executive Mike Wilson, a chemical engineer who has run Agrium since 2000. Global grain demand has increased steadily in the past 20 years, with consumption rising by about 40 million metric tons a year, he notes. Given a growing taste for grain-fed livestock among the emerging middle classes in countries such as China and India, the trend is apt to continue, Wilson adds.

Tracing its roots to 1931, Agrium is the third-largest potash producer in North America. Agrium also makes and markets nitrogen- and phosphate-based plant nutrients, and is the leading agricultural-products retailer in the U.S. Its farm centers sell, among other products, seeds, insecticides -- and fertilizer. The company isn't "just a bet on fertilizer volume and prices," says Lawrence Franko, a senior equity analyst at Delaware Investments in Philadelphia. "It is kind of a back-door way to piggyback on Monsanto 's [MON] success without paying a high valuation."

Monsanto, a leader in genetically modified seeds, trades for about 20 times forward earnings.

With its purchase last May of distributor UAP, Agrium now owns 15% of the U.S. farm-retail market. Yet the company's retail operations represent just a quarter of last year's record $2.3 billion in earnings before interest, taxes, depreciation and amortization. Agrium aims to have retail plus its tiny advanced-technology business chip in half of Ebitda in the future, and perhaps as much as 70% when fertilizer is in a slump.

The expansion of the retail network has given Agrium greater earnings stability and demonstrated management's skill at integrating acquired businesses. The company completed nine acquisitions in the past five years, and typically achieves 25% more than forecast in savings from synergies, says Dundee's Kelertas. Its latest annual report indicates Agrium surpassed its target of $20 million in first-year savings after buying UAP.

AGRIUM WILL NEED ALL ITS DEAL-MAKING skills, and more, to win CF, based in Deerfield, Ill. It stepped in after CF made a hostile run at another fertilizer company, Terra Industries (TRA). CF rejected Agrium's initial $3.6 billion cash and stock offer, which valued the company at $72 a share, a 30% premium to CF's pre-offer price, calling it "grossly inadequate." In late March, Agrium raised the cash portion of its bid by 10%, to 35 a share, and commenced an exchange offer for the shares.

RiskMetrics/ISS, a proxy-advisory firm, declined to support Agrium's bid to have CF shareholders withhold votes on CF's slate of three directors at its annual meeting this Tuesday, April 21. But it has said it believes the Terra deal is "unlikely to be consummated and that Agrium may eventually acquire CF."

Nothing would please CEO Wilson more. Owning CF would enhance Agrium's position in the more cyclically sensitive nitrogen and phosphate markets, and be "complementary from a geographic standpoint." Wilson demurred on CF's bankers' suggested purchase price of $100-plus per share, saying, "If that is such a compelling number, I'm amazed they haven't doubled their offer to Terra." That bid stands at $2.1 billion; Terra trades near 29.

With or without CF, Wilson sees "lots of opportunity to grow." He also predicts a stronger second half, citing pent-up demand from farmers, who held back on buying fertilizer last fall. U.S. farmers are expected to plant 85 million acres of corn this spring, one of the biggest plantings ever.

Just consider it fertilizer for Agrium's shares.

The Bottom Line
Agrium's stock was hard hit by commodities' selloff, but could rally roughly 21%, to C$61, as the global economy improves.

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.

Migration boost to help construction industry - eventually

Striking Air NZ cabin crew to be locked out

NZ firms slightly faster at paying their bills

Cartel probe into Atlantic airline alliances

Australian billionaire 'gravely ill'

Bailout For College Tuition?

You are a responsible parent or grandparent and you're planning for your kid's future. You hope it includes college, so you prepay. You get today's prices for tuition and fees instead of the higher costs later. Those payments that are put into a state-managed investment fund. When the child is ready to attend a state college, the tuition and fees are paid from the fund...or not.

Nineteen states that offer tuition prepay programs are worried they may not be able to afford the tuition, thanks to severe stock market losses. Stateline reports that while none of the states has failed to pay tuition for plan participants in the current school year, some are promising to bail out programs in the future. Even if it means they have to take funds from somewhere else, freeze enrollment and raise fees.

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Write-Offs: 04.20.09

$$$ The Rage Of The Rich [NYM]

$$$ Dear Mr. Soros [Cityfile]

$$$ This is Dick Parson's moment [Crain's]

Fund My Idea? Nope.

I live in Seattle, where every other person you meet works for a startup. Usually that means they're a computer person with an idea. After a while you stop asking about the ideas (there are just too many!).

All those people with ideas need money to get going from venture capitalists or "angel investors." But the idea money is just not flowing like it used to.

According to data from the National Venture Capital Association this is the first time in years that there were two consecutive quarters without an IPO by a venture-backed company.

The Center for Venture Research says the amount invested by angels (very early-stage investors for startups) fell by 26 percent last year. That said, the number of investments fell overall by only 2.9 percent. So there is still a bunch of early-stage investing, but those angels are less willing to take risk.

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Waxman Says Climate Bill Can't Compromise on Carbon Cap

UBS's Bellini Expects Sun to Be Better Run Under Oracle

Austerity Britain: vanishing jobs of Merthyr Tydfil

Queen's Awards recognise vision and expertise

Hear: Who's Driving This?

Protesting a sales tax increase, maybe, in Bothell, Wash. /Seven_Null7 Planet Money Flickr pool

 

On today's Planet Money:

-- The Obama Administration plans to convert its preferred stock in bailed-out banks to common stock. Simon Johnson, of Baseline Scenario (and now The Hearing, on the Washington Post's site), says it's mostly an accounting game, but one that signals the government's thinking about the health of banks.

-- General Motors announced 1,600 layoffs today, part of its efforts to stave off bankruptcy. But with the White House setting a deadline of June 1, says Steve Jakubowski of the Bankruptcy Litigation Blog, GM is not exactly in the driver's seat.

-- Ali Velshi's Gimme My Money Back: Your Guide to Beating the Financial Markets showed up at the office recently. Mike Pesca reviews it, with gusto.

Bonus: What the heck is glabrous?

Download the podcast; or subscribe. Intro music: Lily Allen's "The Fear." Find us: Twitter/ Facebook/ Flickr

In his book review for this podcast, Mike Pesca calls Ali Velshi a "glabrous imp of fiduciary acumen." The glabrous part means bald, basically. Or as Merriam-Webster puts it, "smooth, especially: having a surface without hairs or projections."

See?

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Fresh questions on Pandit's future at Citi

Software and services help IBM meet targets

Sector snap: Casino stocks drop with markets (AP)

EU draft rules for hedge funds attacked

Presented Without Comment

NEVER let it be said that Michael Lewis spares himself from his keen reporting. In his new memoir of fatherhood, "Home Game," he writes that when he was dropping off his daughter at day care, the teachers giggled at him for no apparent reason. He asked his wife, Tabitha Soren, why they were laughing and she mumbled, "Er, it's about your penis." Lewis' dogged reporting uncovered the grim facts: His toddler daughter, who had a habit of peeking on him in the shower, liked to blurt out to everyone at day care, "Daddy has a small penis!"

Sizing Up Daddy [Page Six]

Wall Street tumbles as investors dump financials (AP)

AP - Investors are back to worrying about banks.

How the Dow Jones industrials fared Monday (AP)

AP - Long-present unease about soured loans bubbled over on Monday after Bank of America Corp. said it set aside $13.4 billion to cover lending losses, even as it posted a profit for the first quarter, and as anxiety grew about the results of the government's "stress tests" to determine if banks will need more government bailout money.

How the Dow Jones industrials fared Monday (AP)

AP - Long-present unease about soured loans bubbled over on Monday after Bank of America Corp. said it set aside $13.4 billion to cover lending losses, even as it posted a profit for the first quarter, and as anxiety grew about the results of the government's "stress tests" to determine if banks will need more government bailout money.

What Should Bernie Madoff's Dealbreaker Column Be About?

As has been noted 'round these parts, over the last several months, noted hooker fucker Eliot Spitzer has been trying his darndest to re-inject himself into society as a remade, non-prostie bangin' man. Mostly notably, Ness has done this by taking up a perch at Slate, which is known for doling out column inches to people with spotted pasts. Some are wondering today if Bernie Madoff will make the same attempt at public rehabilitation next year, and which outlet will offer him the space from which to do it. Obviously, that outlet is Dealbreaker. We'd be more than happy to give the Ponzier a home up in this piece. But, the question is, what should the column be about? While righting the wrongs of Wall Street and waxing hypocritical about crime and punishment get Spitzer off just fine, we're thinking Ponzi-boy is sick of finance and is looking to branch out. Since you people will be the ones to read it, what would you like Berns to write about? Sex? Travel? Grab-bag life advice column?

China rules out pursuit of African farmland

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

Fannie Mae board elevates Williams to CEO spot (AP)

Don't Bank On It

Poor, poor Wharton students. Thing have gotten so bad that the last resort has become "a job teaching in Dubai," "the State Department," or, yes, "becoming a rabbi."

"It's always been about the brass ring and it's always been about the brand recognition, and for a lot of students that meant jobs at Goldman Sachs," said Emanuel Sturman, director of career services at Dartmouth College. "It's premature to say the bloom is off the rose totally, but I think students are starting to look at a wider array of brass rings."

So having discovered that, once you take finance out of the picture "...a lot of Wharton people were interesting" and as the recession greedily licks up their tears of ultimate sorrow, what advice might we have for Riana, Daniel and Jessica, oh, wisest Dealbreaker?

Business Grads Looking Beyond Wall Street [The New York Times]

The Obama Portfolio: Uh Oh.

The Obama Portfolio (Since Inception): +18.22%

Earlier: The Obama Portfolio

Oracle in $7.4bn swoop on Sun

Kellogg to settle FTC charges of false advertising

'They Sold Off My Hometown'

No straight roads Andrew Wardlaw

 

The news that General Growth had gone bankrupt was a bit close for Andrew Wardlaw. That's because his hometown was designed by one of the mall owner's acquisitions, before the smaller real estate company became a really expensive part of the giant one's ledger. Andrew writes:

I grew up in Columbia, MD, a city that was planned and developed by the Rouse Corporation. Columbia is quirky place. None of the roads are straight so you don't feel like you're a spot on a grid. There are strict rules on what you can do to your house, power lines and cable lines must be underground. Most neighborhoods had a community swimming pool within walking distance. Neighborhoods are clustered around shopping centers, which were initially designed keep the store fronts facing away from the streets. Businesses weren't allowed to have signs above a certain size, and neon was forbidden. As a teenager I hated the restrictions, but now that I'm living in CA, I'd appreciate knowing that the person who's about to move next-door can't park a junky RV on the curb next to my house.

Then Mr Rouse died, and the regulations on businesses started fading. A couple years ago, the Rouse Corporation was bought by General Growth, and I quipped to a co-worker "Well, they sold off my home town." And now it's bankrupt. So bizarre.

Land of scenic artificial lakes AndreW Wardlaw

 

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Obama orders cabinet to deliver $100m cuts

The Paperless White House

NPR's Robert Benincasa sends this bulletin:

First craigslist, now this. Cutting millions in newspaper advertising fees is among the measures the Obama Administration's cabinet agencies are undertaking to slash $100 million in agency spending over the next 90 days.

In a White House statement released in advance of President Obama's first cabinet meeting today, this item appeared under the heading "Going Paperless": "The U.S. Attorneys and the U.S. Marshals Offices' Asset Forfeiture program is converting publication of judicial forfeiture notices from newspapers to the Internet. This change is expected to save $6.7 million over the first 5 years."

Also on the list: saving $47 million per year by having the Department Of Homeland Security buy software licenses more efficiently, and trying to ferret out waste and fraud in farm program payments.

The White House says the agencies will have to report back with their savings at the end of 90 days.

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Brussels to probe airline alliances

Ahamed Advises Central Bankers to Be Imaginative

Cross Sees 5,000 Jobs Cut in Oracle's Acquisition of Sun

Greenwald Says GDP `Has to Go to Zero,' Then Pick Up

Dodd taps Wall Street money for re-election (AP)

AP - Wealthy Wall Street executives may be outcasts to some Americans, but not to Democratic Sen. Chris Dodd.

Who'll Pay For News --- And How?

Even before the recession hit, there was a lot of angst -- and a lot of layoffs -- inside the news business as journalists fretted about how we will be able to afford to report the news. Now it's outright panic. Los Angeles Times publisher Eddy Hartenstein reportedly defended putting an advertisement on the front page of his paper by saying, "I'm just trying to keep the lights on here, folks."

And yet, out of tumult comes opportunity. And as the traditional newspaper model cracks apart, we're seeing a profusion of new proposals from actors old and new. We've heard from a few Planet Money regulars that you'd like to learn more about them.

Suggestions include the creation of industry-wide Web portals with paid memberships, micropayments charged to readers for each article viewed, and convincing deep-pocketed patrons to endow major news organizations as not-for-profit institutions. Senator John Kerry is planning hearings on the future of newspapers, prompted by the fate of the Boston Globe. Its owner, the New York Times Co., says it is losing well over $1 million a week on the Globe and has threatened to close it if unions do not make major concessions.

I'm embedding with Planet Money this week. As NPR's resident media dude, I'll be trying to check in with advocates for several major alternatives currently out there, and share some of those conversations with you.

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A working man's poet

Paying a high price for a Pulitzer Prize

Farmers yield new ideas from drought

Why carmakers are speeding to China

Commercial radio seeks your donations

Will budget cuts make a difference?

Diagnosing major banks' health

Shannon O'Neil Says Cuba Was at Center of Americas Summit

Stewart Sees Signs the Financial Industry Is Stabilizing

U.S. Banks, Literally....

The government is planning to convert the loans it gave to troubled financial institutions to common stock. This would transform the government's position from a lender to a majority owner of some of the world's biggest banks.

The downside of this deal is that the government will take on more risk when it converts the original preferred shares to common equity. The government can only retrieve taxpayer money if stock prices go up. Also, preferred shares have a superior claim to a firm's assets if it files for bankruptcy. With common shares, you're much further down in the pecking order.

Converting preferred shares to common ones isn't a new concept. The U.S. Treasury has already converted preferred shares in Citigroup to common shares, and now has a 36 percent stake in the banking giant.Citigroup's shares have since risen more than 40 percent in the past six weeks.

So far the government has given $140 billion to the 19 largest financial institutions. These loans have come in the form of preferred stock, without voting rights, and pay about a 5 percent interest rate. The banks, meanwhile, haven't done much to boost their popularity in Congress. Some politicians are angry about the banks' delay at lending the money to the public and bonus payments to executives. Since Congress is sounding unlikely to increase the amount of bailout money, the Obama administration sees converting the original loans into common shares as a way to make more capital available for these banks.

This move could suggest that the government is confident the banks will be stronger in the future and the share price will be higher when it decides to sell. Not everyone is as optimistic as the government. There have been some concerns that the rally for financial stocks is over-extended. Calls for "too big to fail" organizations to be broken up could change the financial landscape dramatically, with banking behemoths taking a back seat.

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George Says Bank of America's Results `Probably Not Repeatable'

Hintz Says `Worst Is Over’ for Finance Industry

GM Workers Scatter After Plant Closes In Georgia

When a big manufacturing plant closes, the lucky employees are the ones who can find work elsewhere. But in this economy elsewhere is often far away. The Atlanta Journal Constitution reports that workers from the closed GM plant in Doraville, Ga., took jobs in places as varied as Texas, Louisiana, Tennessee, Kentucky, Ohio, Iowa, Delaware, Missouri, Colorado and even the company's ancestral homeland -- Michigan. For many, that dislocation is jarring but not new.

"I never wanted to be a GM gypsy. I just ended up being one," Brian Kieckbusch, a 35-year-old autoworker, told the AJC. "I gave up my family in Wisconsin, my [foreclosed] house in Georgia, and if it tanks here, I'm lost."

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'Just Plain Sad' In Baltimore

Seen in Baltimore, Maryland. Zach Stednick

 

Zach writes:

I live in Baltimore, MD and I recently saw this sign in my neighborhood. I can understand having to sell your jet ski or wine collection to help make ends meet but having to sell your fishing equipment is just plain sad. The neighborhood I live in is a mix of long-term residents who primarily worked blue collar jobs and a group of younger residents drawn to the sense of community the neighborhood offers. Its difficult to say how the recession is affecting Baltimore, mostly because Baltimore was pretty bad off before the recession started.

The trend for companies to move out to Baltimore County which surrounds the city means fewer skilled workers and a lower tax base within the city. One of these to recently announce moving is Zurich Insurance which has a large office right down the street from me.

I am currently about to finish my Master's in Public Health here at Johns Hopkins. Its tough to gauge what my classmates think of the situation because so many of them are either doctors or are going on for other advanced degrees. I have applied to roughly 50 jobs for which I feel I am well-qualified for and have been granted exactly 2 phone interviews.

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Planet Money Mugs?

Lisa Fleisher writes:

man, you guys need to get some branded gear into the NPR shop. I'm sure you could come up with some really clever ideas.

Calculators, mugs, ted spread blankets (get it?), or maybe ted spread jams (tee hee). Dollhouse "piggy" banks. Adam Davidson bobbleheads. OK not really that last one.

But I'd totally buy a PM coffee tumbler.

I've been wanting a darn t-shirt for months now. Hopefully we can organize soon. What would you all like to see?

Lisa's note prompted some emails among the staff here:

We should allow for very complicated purchase agreements, where they buy on layaway but can put it down as collateral and get a loan which we finance through a synthetic cdo cubed insured by fannie and Freddie.

And

No one knows what the gifts are. We put them in a big room, rate the room AAA and allow people to buy shares.

Or

We could even offer people stock certificate type things declaring that they own traunches of pledge gifts. Collateralized mugs... you may have lots of mugs, but it's impossible to tell which mug is yours!

For that matter we could just get a bunch of gifts, blend them into dust and then sell them in various proportions.

Maybe a reverse auction?

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Iran president triggers UN walkout

Schork Sees U.S. Gasoline Prices Declining After May