Opening Bell: 04.22.09

Morgan Stanley Posts Loss (MS)

Morgan Stanley reported a net loss applicable to Morgan Stanley for the first quarter ended March 31, 2009 of $177 million, or $0.57 per diluted share (reflective of preferred dividends),(3) compared with net income applicable to Morgan Stanley of $1,413 million, or $1.26 per diluted share, a year ago. Net revenues were $3.0 billion, 62 percent below last year's first quarter. Non-interest expenses of $3.9 billion decreased 33 percent from a year ago. Compensation expenses of $2.1 billion decreased 46 percent from a year ago, primarily reflecting lower revenues. Non-compensation expenses decreased 9 percent, reflecting lower levels of business activity and firm-wide initiatives to reduce costs.

Freddie Mac David Kellermann official found dead (CBS)
Suicide. Sad news.

Treasury Weighs New Mortgage Subsidies (Reuters)
"The Treasury Department is considering giving banks and investors billions of dollars in fresh incentives to modify troubled mortgages and save homeowners from foreclosure, sources familiar with official deliberations said.

Under one scenario, investors in second liens would receive a cash payment if they agree to ease the terms of troubled loans and accept a smaller return on their mortgage investment, the sources said.

During the height of the housing boom, some borrowers were able to buy a home with no downpayment by adding a second lien and many of those loans are now failing as the economy and housing market struggle."

Geithner Can Move Markets (FT)
"Tim Geithner, US Treasury secretary, on Tuesday sparked a rally in financial stocks after he said the "vast majority" of the nation's banks are well-capitalised and damped investor fears that the government will wipe out their holdings.

However, Mr Geithner conceded the massive effort by the US authorities to rescue the banking system from the crisis was showing only "mixed" signs of success."

Bill Set To Address Credit Cards (Reuters)
Members of the Hill are expected to address Credit Cards next, going after the evil empire that's charging fees to people to buy stuff they can't afford (and probably won't/can't pay back). We'll see the banks respond to this by cutting credit (if not all together, then) substantially for those that are low-income high-risk; there's no upside to floating these people lines when they run a risk of default that can't properly be accounted for.

"A Congressional panel is expected to approve legislation on Wednesday that would curb high credit card fees and penalties assessed by many banks that have benefited from the federal government's financial bailout program.

The pro-consumer bill, which would mean sweeping changes for banks that issue cards, is an important test of the political will of Democrats who are pushing for U.S. financial regulation reform."

Source: Dealbreaker | 22 Apr 2009 | 1:15 pm

Morgan Stanley hit by big losses

The US investment bank report a first-quarter loss of $177m, down from a profit of $1.4bn in the same quarter last year.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 1:15 pm

CORRECTED - UPDATE 2-St Jude net earnings rise 14 percent

(Corrects headline and first paragraph to show a 14 percent rise; changes year-ago quarterly net to $176.6 million in second paragraph)
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 1:15 pm

US Freddie Mac chief found dead

The acting chief financial officer of US mortgage giant Freddie Mac has been found dead at his home, police say.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 1:13 pm

Morgan Stanley suffers another loss

Morgan Stanley reported a much bigger-than-anticipated loss in the first quarter, as an improvement in the company's credit spreads and a decline in the commercial real estate market hurt the company's revenues.
Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 1:13 pm

Budget 2009: David Cameron condemns 'Government of living dead'

David Cameron the Conservative leader has said that the electorate will never forgive the Labour Party for presiding over a 'decade of debt' following Alistair Darling's Budget statement.
Source: Telegraph Finance | 22 Apr 2009 | 1:11 pm

Strong sales boost for McDonald's

Fast-food chain McDonald's announces increased profits in the first three months of the year.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 1:10 pm

Wells Fargo has record profit, tops in mortgages (Reuters)

Reuters - Wells Fargo & Co posted a record first-quarter profit of $3.05 billion as a surge in mortgage banking helped it displace Bank of America Corp as the nation's largest home lender.
Source: Yahoo! News: Business | 22 Apr 2009 | 1:09 pm

Mining Earnings Plummet (FCX, ABX, GG)

Now this is what really bad news looks like. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) reported first quarter 2009 EPS of $0.11 on net income of $43 million, compared with EPS of $2.64 and net income of $1.1 billion in the first quarter a year ago. Revenues totaled $2.6 billion, compared with $5.67 billion in [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 1:09 pm

UPDATE 1-Genzyme profit rises; revenue falls short of view

BOSTON, April 22 (Reuters) - Genzyme Corp said on Wednesday its first-quarter earnings rose 34.5 percent, but revenue was hurt by currency fluctuations and supply constraints on Myozyme, its drug to treat...
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 1:08 pm

Wall Street set to slip on financial fears

Fears over future write-downs at financials companies were set to push US equities lower
Source: Financial Times - US homepage | 22 Apr 2009 | 1:06 pm

UPDATE 1-CH Energy Q1 profit jumps 19 pct

* Results helped by strength at Griffith subsidiary April 22 (Reuters) - Electric utility company CH Energy Group Inc reported a 19 percent rise in quarterly profit, helped by strong performance at its...
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 1:05 pm

AT&T profit beats expectations, shares rise

NEW YORK (Reuters) - AT&T Inc posted a smaller-than-expected drop in quarterly profit due to strong growth in its nascent video and high-speed Internet service, sending shares up 2 percent.
Source: Reuters: Business News | 22 Apr 2009 | 1:05 pm

AT&T profit beats expectations, shares rise (Reuters)

Reuters - AT&T Inc posted a smaller-than-expected drop in quarterly profit due to strong growth in its nascent video and high-speed Internet service, sending shares up 2 percent.
Source: Yahoo! News: Business | 22 Apr 2009 | 1:05 pm

UPDATE 2-EnCana profit tops estimates

* Allocates $290 million to Haynesville shale play (Adds details. Changes dateline to TORONTO. In U.S. dollars.)
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 1:02 pm

Freddie Mac acting CFO found dead in apparent suicide

WASHINGTON (Reuters) - David Kellermann, acting chief financial officer of mortgage giant Freddie Mac, was found dead on Wednesday in his suburban Virginia home, a Fairfax County police spokeswoman said.
Source: Reuters: Business News | 22 Apr 2009 | 1:02 pm

Freddie Mac acting CFO found dead in apparent suicide (Reuters)

Reuters - David Kellermann, acting chief financial officer of mortgage giant Freddie Mac, was found dead on Wednesday in his suburban Virginia home, a Fairfax County police spokeswoman said.
Source: Yahoo! News: Business | 22 Apr 2009 | 1:02 pm

UPDATE 2-AT&T profit beats, shares rise 2 pct

* Shares rise 2 percent in premarket trade (Adds analyst quote, more subscriber numbers)
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 1:01 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 | 22 Apr 2009 | 1:01 pm

Stocks set to fall

U.S. stocks appeared set to fall at Wednesday's open as investors faced more mixed earnings news, led by Morgan Stanley's weaker-than-expected results.
Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 1:01 pm

No quick end to global recession: IMF

There will not be a quick exit from the global recession, despite some encouraging signs in the past few weeks, the International Monetary Fund says.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 1:01 pm

IMF says world facing recession

The global economy will decline by 1.3% this year, the biggest fall since World War II, says the International Monetary Fund.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 1:01 pm

IMF slashes outlook for global economy

The global economy will contract sharply this year and recover only sluggishly in 2010, the IMF said on Wednesday, drastically downgrading the predictions it made just three months ago
Source: Financial Times - US homepage | 22 Apr 2009 | 1:00 pm

Budget 2009: Reaction

The price of British government bonds plunged within minutes of the Chancellor sitting down as the Debt Management Office revealed it would be tapping investors for a much bigger than expected £240 billion this year.
Source: Latest Business News from Times Online | 22 Apr 2009 | 1:00 pm

NewsWatch: U.S. stock futures edge lower as earnings roll out

U.S. stock futures on Wednesday drop amid another wave of earnings, with shares of Morgan Stanley stumbling after the investment bank reported a loss.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 1:00 pm

UK slump will not end in 2010, says IMF

Alistair Darling’s Budget forecast that the economy will revive next year and return to modest growth came under heavy fire today as the International Monetary Fund warned that Britain’s slump will drag on into 2010.
Source: Latest Business News from Times Online | 22 Apr 2009 | 1:00 pm

Wall Street points lower amid earnings reports (AP)

AP - Wall Street signaled the week's back-and-forth could continue Wednesday as investors grew unnerved by another batch of corporate profit reports.
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 12:59 pm

Global downturn deeper that feared, says IMF

The savage slump in the world’s leading economies is set to be even deeper than previously feared, with recovery next year now unlikely to materialise, the International Monetary Fund warned today.
Source: Latest Business News from Times Online | 22 Apr 2009 | 12:58 pm

Where are iJustine and Loneygirl15 now?

Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 12:57 pm

Morgan Stanley swings to $177m loss

Morgan Stanley reported a loss of $177m in the first three months of the year, worse than analysts expected, and said it would cut its quarterly dividend as real estate investments sapped its profits
Source: Financial Times - US homepage | 22 Apr 2009 | 12:57 pm

Continental reports a wider first-quarter loss

NEW YORK (MarketWatch) -- Continental Airlines reported a wider first-quarter loss on Wednesday as a significant falloff in business travel more than offset a sharp decline in jet fuel costs.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:57 pm

Darling admits huge borrowing

The chancellor said the UK economy would start growing again by the end of 2009 and promised action to prevent an entire generation being lost to unemployment
Source: Financial Times - US homepage | 22 Apr 2009 | 12:56 pm

CFO Death Only Clouds Freddie Mac & Fannie Mae Further (FRE, FNM)

If you thought that things could not get much stranger at Freddie Mac (NYSE: FRE) or at Fannie Mae (NYSE: FNM), they may have taken an even stranger turn than most could imagine.  David Kellerman, the acting Chief Financial Officer and Senior VP at Freddie Mac, was found dead from an apparent suicide at his [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 12:56 pm

Europe Markets: Shares in Europe decline as bank sector gains fade

European shares turned lower on Wednesday afternoon, as early gains for the banking sector evaporated in the wake of a quarterly loss from Morgan Stanley and pharmaceutical firms also lost ground.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:56 pm

Freddie Mac official found dead in apparent suicide (AP)

AP - David Kellermann, the acting chief financial officer of mortgage giant Freddie Mac, was found dead at his home Wednesday morning in what police said was an apparent suicide.

Source: Yahoo! News: Business | 22 Apr 2009 | 12:54 pm

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

Stocks expected to move significantly in trading on Wednesday include AMD, Air Products, Altria, AT&T, Boeing, Continental Air, Kimberly-Clark, McDonald's, Norfolk Southern, Pepsi Bottling, Ryder System and Yahoo.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:52 pm

Morgan Stanley posts loss, shares fall

NEW YORK (Reuters) - Morgan Stanley posted its second straight quarterly loss on Wednesday and slashed its dividend as real estate investment losses and a charge from the improving value of it own debt wiped out gains in its trading businesses.
Source: Reuters: Business News | 22 Apr 2009 | 12:50 pm

Morgan Stanley posts loss, shares fall (Reuters)

Reuters - Morgan Stanley posted its second straight quarterly loss on Wednesday and slashed its dividend as real estate investment losses and a charge from the improving value of it own debt wiped out gains in its trading businesses.

Source: Yahoo! News: Business | 22 Apr 2009 | 12:50 pm

UPDATE 2-Glaxo earnings fall short as generics, costs weigh

* Hit by generics, phasing of costs, R&D write-offs
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 12:50 pm

UK's Darling announces 750 mln pound high-tech fund

* Covers emerging technology such as digital and biotech
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 12:48 pm

Freeport-McMoRan's net income tumbles 96%

Freeport-McMoRan Copper & Gold Inc. says first-quarter net income fell 96%, as prices for metals and other commodities plunged from the year-ago period and the company took several charges for restructuring and other items.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:47 pm

UPDATE 1-PPD shares tumble on lowered outlook

* Cuts 2009 outlook (Adds analyst comments, updates share movement)
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 12:46 pm

NYC comptroller eyes Quadrangle fees

The New York City comptroller's office is reportedly looking into whether private-equity firm Quadrangle Group _ once headed by Steven Rattner _ misled or deceived city pension funds. ...
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 12:46 pm

McDonald’s (MCD): Still Bullett-Proof

There is not much to say about McDonald’s (MCD) other than to state that it is clearly recession-proof and has the best management in its industry. Global comparable sales increase of 4.3% even though the quarter had one less day than the period a year ago. Taking out the effects of currency, MCD sales rose 2% [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 12:44 pm

Budget 2009: how changes to Air Passenger Duty will affect passengers

How the Government's decision to increase Air Passenger Duty will impact British travellers.
Source: Telegraph Finance | 22 Apr 2009 | 12:43 pm

Freddie Mac's Kellermann found dead

David Kellermann, acting chief financial officer of mortgage giant Freddie Mac, was found dead on Wednesday in his suburban Virginia home, a Fairfax County police spokeswoman said
Source: Financial Times - US homepage | 22 Apr 2009 | 12:43 pm

British budget ramps up borrowing; growth slashed

British government plans to ratchet up public borrowing to a record level this year in an effort to grow the economy out of the deepest recession since World War II, but will move to hike taxes and aggressively rein in red ink in following years as a recovery takes hold, Chancellor of the Exchequer Alistair Darling said Wednesday.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:42 pm

Freddie Mac CFO found dead

The acting chief financial officer of mortgage financier Freddie Mac, David Kellermann, was found dead Wednesday morning, police said.
Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 12:41 pm

Peugeot first quarter sales, output slump

French auto maker Peugeot Citroen said Wednesday it has only limited visibility on the outlook for 2009 after reporting a first quarter slump in sales and output. The company said sales...
Source: RSS feed - channel BNewsBusiness | 22 Apr 2009 | 12:41 pm

Darling unveils 50% top tax rate

Alistair Darling announces a 50% tax rate for high earners and predicts the UK economy's worst year since 1945 in his Budget.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 12:40 pm

U.S. banks to get stress test results Friday: report

(Reuters) - U.S. banks will be briefed by regulators as early as Friday on how they performed in government "stress tests," before the results are made public later, The Wall Street Journal reported, citing government officials.
Source: Reuters: Business News | 22 Apr 2009 | 12:40 pm

Wells Fargo seals record profit

US bank Wells Fargo confirms it made a record profit of $3.05bn in the first quarter of this year.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 12:39 pm

Top Freddie Mac executive David Kellermann dead in suspected suicide

The chief financial officer of Freddie Mac, the giant US mortgage lender and guarantor, was today found dead in an apparent suicide.
Source: Latest Business News from Times Online | 22 Apr 2009 | 12:38 pm

McDonald's posts modest rise in quarterly profit

McDonald's Corp. reports a modest rise in first-quarter earnings as a healthy increase in same-store sales and a one-time gain helped offset currency headwinds from a stronger dollar.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:38 pm

T. Rowe sets layoffs as quarterly profit plunges

Asset manager T. Rowe Price Group says first-quarter profit fell to $48.2 million, or 19 cents a share, from $151.5 million, or 55 cents a share, in the year-ago period.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 12:34 pm

Britain's richest hit with tax rises in Budget 2009

Alistair Darling has pledged to hit Britain's richest workers and savers with a smattering of new taxes to help support the UK through its worst recession since the 1930s.
Source: Telegraph Finance | 22 Apr 2009 | 12:32 pm

Heads and Tails at Wells Fargo on Earnings (WFC)

Wells Fargo & Company (NYSE: WFC) has posted its earnings this morning.  The bank gave a net income figure of $3.05 billion, with a net income applicable to common shares of $2.38 billion.  This translates to $0.56 EPS after merger-related and restructuring expenses and after a credit reserve build. Its revenues also came in at [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 12:30 pm

Freddie Mac CFO found dead in apparent suicide

The government-controlled company that owns or guarantees about 13 million home loans has been criticized for reckless business practices. David Kellerman got his post in September.

David Kellermann, the acting chief financial officer of mortgage giant Freddie Mac, was found dead at his home Wednesday in what broadcast reports said was an apparent suicide.

Source: L.A. Times - Business | 22 Apr 2009 | 12:30 pm

Wells Fargo: $3B profit

Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 12:29 pm

AT&T: 1.6 million new iPhones but profit falls

Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 12:29 pm

McDonald's first-quarter profit rises

NEW YORK (Reuters) - McDonald's Corp reported a higher quarterly profit on Wednesday, as global sales at established restaurants rose despite a recession, and the company said its April same-store sales are trending at least as strong or better than results from the first quarter.
Source: Reuters: Business News | 22 Apr 2009 | 12:27 pm

Alistair Darling's Budget tax hike for the rich sets election battle line

Alistair Darling drew the battle lines for the next election today when he announced a new 50p top rate of tax for high-earners to help rein in record public borrowing.
Source: Latest Business News from Times Online | 22 Apr 2009 | 12:25 pm

Alistair Darling unveils 50 per cent tax rate in Budget 2009

A new top rate of income tax for those earning over £150000 has been announced in the Budget by Alistair Darling the Chancellor.
Source: Telegraph Finance | 22 Apr 2009 | 12:24 pm

Boeing sees profits fall by 50%

Aircraft maker Boeing is hit as passengers carriers and cargo operators are affected by the global economic downturn.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 12:23 pm

Altria profit beats estimates

CHICAGO (Reuters) - Altria Group Inc posted a higher-than-expected quarterly profit on Wednesday, as price increases helped offset a drop in cigarette shipments related to a rise in the federal tax on cigarettes.
Source: Reuters: Business News | 22 Apr 2009 | 12:22 pm

Stock futures extend losses after Morgan Stanley results

NEW YORK (Reuters) - Stock index futures briefly extended declines on Wednesday amid a slew of quarterly results, including a net loss from Morgan Stanley .
Source: Reuters: Business News | 22 Apr 2009 | 12:20 pm

Stock futures extend losses after Morgan Stanley results (Reuters)

Reuters - Stock index futures briefly extended declines on Wednesday amid a slew of quarterly results, including a net loss from Morgan Stanley .

Source: Yahoo! News: Business | 22 Apr 2009 | 12:20 pm

Stock futures extend losses after Morgan Stanley results (Reuters)

Reuters - Stock index futures briefly extended declines on Wednesday amid a slew of quarterly results, including a net loss from Morgan Stanley .

Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 12:20 pm

Wells Fargo posts $3.05 billion profit

NEW YORK (Reuters) - Wells Fargo & Co on Wednesday posted a $3.05 billion first-quarter profit, in line with its prior forecast, as a surge in mortgage banking as well as benefits from the purchase of Wachovia Corp offset rising credit losses.
Source: Reuters: Business News | 22 Apr 2009 | 12:19 pm

Volkswagen and Peugeot sales fall

German car maker Volkswagen and Peugeot Citroën the French group have posted major falls in first quarter sales amid the crisis facing the global automotive industry.
Source: Telegraph Finance | 22 Apr 2009 | 12:12 pm

A Hard Quarter For AT&T (T): Landline Drop Races Cellular Increase

AT&T (T) earnings were within the range of Wall St. forecasts. That is not saying much. The results were modest and pushed the stock up about 3%. AT&T’s first quarter revenues totaled $30.6 billion, net income was $3.1 billion, and EPS came in at $.53. Revenue dipped slightly from last year, and net fell 9% to $3.2 billion. The company’s [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 12:10 pm

Boeing profit narrows as economy hits orders

CHICAGO (Reuters) - Boeing Co on Wednesday said its quarterly net profit narrowed as cash-strapped airlines deferred purchases of expensive wide-body planes during the economic recession.
Source: Reuters: Business News | 22 Apr 2009 | 12:09 pm

Jump-starting an American car town

Reviving an American car town has got to be one of the toughest jobs in the country. It may also be one of the most important.
Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 12:00 pm

Budget 2009: Alistair Darling's speech

Alistair Darling the Chancellor of the Exchequer today promised a Budget to speed economic recovery by protecting jobs and spreading prosperity.
Source: Telegraph Finance | 22 Apr 2009 | 11:56 am

Budget 2009: Alistair Darling admits UK faces deep recession

Alistair Darling admitted in today's Budget that the UK is facing a deep recession in 2009 but expects the blitz of measures taken in the past six months to fuel a recovery next year.
Source: Telegraph Finance | 22 Apr 2009 | 11:53 am

Top Analyst Upgrades (ANDE, CAT, CELG, CLX, DNDN)

It is actually looking pretty thin out there in the land of analyst upgrades.  These are the few upgrades and positive research calls we have seen from Wall Street this Wednesday morning with about two hours until the market open: Andersons (ANDE) Raised to Buy at Piper Jaffray. Caterpillar (CAT) Raised to Overweight at JPMorgan. Celgene (CELG) Raised [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 11:51 am

Budget 2009: the key points at a glance

Alistair Darling is delivering his second Budget as the country faces its worst recession in decades. Here are the key points at a glance.
Source: Telegraph Finance | 22 Apr 2009 | 11:46 am

Top Analyst Downgrades (AKS, AFL, CMA, DT, FDX, HAL, FITB, KEY, HOT)

These are some of the top pre-market analyst downgrades and negative calls we have seen from Wall Street firms with about two hours until the market open this Wednesday morning: AK Steel (AKS) Cut to Sell at UBS. AFLAC (AFL) Cut to Underweight at Barclays. Comerica (CMA) Cut to Hold at Citigroup. Deutsche Telekom (DT) was downgraded at both [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 11:45 am

Fidel dampens hopes for US-Cuba relations

Former Cuban leader puts a damper on rising hopes for improved ties by saying that apparently conciliatory words from his brother have been misinterpreted
Source: Financial Times - US homepage | 22 Apr 2009 | 11:43 am

Budget 2009: in numbers

Alistair Darling the Chancellor is unveiling his forecasts for the UK economy and the measures that he believes can lead the economy out of its worst downturn since the Second World War. These are the key numbers:
Source: Telegraph Finance | 22 Apr 2009 | 11:41 am

Weber hits out at Brussels

Europe's competition authorities risk throwing the continent's economic integration into reverse with their response to the financial crisis, the head of Germany's Bundesbank has warned in rare public criticism of Brussels
Source: Financial Times - US homepage | 22 Apr 2009 | 11:38 am

Budget 2009: Code for banks offering tax avoidance advice could raise billions

Hundreds of millions of extra pounds "potentially billions" of extra tax will be raised accountants claimed by a clampdown on banks offering tax avoidance advice which the Chancellor will announce in the Budget.
Source: Telegraph Finance | 22 Apr 2009 | 11:27 am

J&J: A Band-Aid for ailing investors

Are you having a tough year at your company? Sorry to hear it. If it makes you feel any better, they're also having a tough year at Johnson & Johnson.
Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 11:21 am

Netflix killer? Hint: It's not YouTube

Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 11:13 am

Volkswagen profits plunge by 74%

Volkswagen reports "extremely weak" results for the first three months of this year as profits fall by three-quarters.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 10:54 am

Ride the tsunami of bailout money

Not since the Great Depression has there been such a tsunami of government stimulus. Make sure your portfolio gets lifted by this tide.
Source: Business and financial news - CNNMoney.com | 22 Apr 2009 | 10:45 am

Truckmaker Volvo cuts 1,543 jobs

Volvo, the world’s second-largest truckmaker, is to cut 1,543 jobs in Sweden as it attempts to adjust to plummeting demand across all its main markets.
Source: Latest Business News from Times Online | 22 Apr 2009 | 10:42 am

UK government borrowing at £90bn

The recession and financial crisis push UK government borrowing to a record £90bn in the the last financial year.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 10:26 am

As China’s Mobile Markets Slow, Handset Companies Face More Problems

The recent earnings numbers from China’s big telecom firms illuminated more than their profitability. One of the assumptions about the health of the global handset makers and companies that build hardware for 3G systems has been that, as growth of mobile penetration slowed in the US, Japan, Europe, China and India would more than pick-up the [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 10:20 am

European budget deficits rising

Most European Union countries' budget deficits rose last year, as they spent heavily while tax revenues fell.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 10:14 am

Japan’s Trade Deficit Problems: A Signal About Global Recovery

Japanese government officials say that they may be seeing a slowing in the bad trend for the nation’s imports and exports. That does not mean much. The March figures were especially poor. Exports fell by 46% from the same month last year. Since Japan is the world’s second largest economy by GDP, if it is seeing such [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 9:54 am

AMD (AMD): No PC Bottom In Sight

Intel (INTC) sees a bottom to the falling demand for PCs. Smaller competitor AMD (AMD) does not. During the Intel earnings conference call, the company’s CEO said that PC sales had leveled off. Contrasting that the CEO of AMD who said, “I don’t know how anybody can say that we hit bottom given the continued [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 9:43 am

Budget Briefing 2009: The possible answers

TAX
Source: Latest Business News from Times Online | 22 Apr 2009 | 9:36 am

Cerberus has no interest in Opel stake: source

FRANKFURT (Reuters) - U.S. financial investor Cerberus has no interest in taking a stake in General Motors' Opel business, a source close to the situation told Reuters on Wednesday.
Source: Reuters: Business News | 22 Apr 2009 | 9:31 am

Risk aversion lends dollar and yen support

The US dollar and the yen advanced on Wednesday at the expense of higher-yielding units like the Australian and New Zealand dollars and emerging market currencies
Source: Financial Times - US homepage | 22 Apr 2009 | 9:25 am

Asian markets fall as jitters about banks persist (AP)

AP - Most Asian markets faltered again Wednesday, with China and Hong Kong shares tumbling almost 3 percent, as positive comments from the U.S. Treasury chief failed to reassure many investors about the health of the financial system. European stocks were slightly higher.

Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 9:16 am

Mortgage lending rises by 16% in March

The amount of money lent in UK mortgages rose by 16 per cent to £11.5 billion from February to March, but the figures were down 52 per cent on March 2008
Source: Latest Business News from Times Online | 22 Apr 2009 | 9:11 am

Bank of England unanimous on rates freeze

Rate-setters on the Bank of England's Monetary Policy Committee (MPC) voted unanimously in favour of freezing interest rates at an historic low of 0.5 per cent earlier this month, according to the minutes of their April meeting released today.
Source: Latest Business News from Times Online | 22 Apr 2009 | 8:42 am

LVMH denies talk of Diageo bid for Moët Hennessy

LVMH, the French luxury goods group, denied today that it was in talks to sell off its 66 per cent stake in Moët Hennessy to Diageo, the world's biggest drinks company.
Source: Latest Business News from Times Online | 22 Apr 2009 | 8:32 am

Cheers, worries greet financial sector's seesawing (AP)

AP - It's a mixed bag out there in the financial sector. Bank lending has declined, mortgage refinancing has improved. And despite a watchdog agency's warnings about the government's bank rescue effort, investors rally at the news that banks might indeed be better off.

Source: Yahoo! News: Business | 22 Apr 2009 | 7:15 am

Aust stocks close moderately lower

SYDNEY - The Australian share market closed moderately lower with losses in the gold miners and mining giant BHP Billiton. At the 1615 AEST close, the benchmark S&P/ASX200 index had dropped 9.2 points, or 0.25 per cent,...
Source: New Zealand Herald - Business | 22 Apr 2009 | 7:00 am

Offshore wind turbines get further boost from Obama administration

New rules to be released by the Interior Department pave the way for projects along the Atlantic Coast -- including one on Nantucket Sound opposed by the Kennedys.

The Interior Department will announce new rules today that clear the way for the first offshore wind turbines to be erected along the Atlantic Coast.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

U.S. to let some big banks repay bailouts early

Treasury Secretary Timothy F. Geithner, in defending the government's rescue efforts through the $700-billion TARP, says funds in the program will be sufficient to cover economic initiatives.

The Obama administration has indicated for the first time that it will let some big banks repay their bailout cash early, estimating that at least $25 billion will come back to the government in the next year.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

'Penguins' is doing swimmingly

The Nickelodeon TV series spawned by the 'Madagascar' movies is already the No. 3 show among kids 2 to 11.

One of the most popular characters in "The Penguins of Madagascar" is Julien, a lemur who has somehow deluded himself into believing he is a king, against much evidence to the contrary.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

Fresh & Easy expansion to continue despite red ink

The British grocery chain will open its 64th store in the region today on the heels of reporting an annual loss of about $200 million.

At a time when Southern California supermarket chains are closing stores and laying off workers, Fresh & Easy Neighborhood Market continues to buck the trend, opening its 64th store in the metropolitan area in Corona today.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

Broadcom makes unsolicited bid for Emulex

The semiconductor maker's $764-million offer marks the second major technology deal announced in as many days as cash-rich companies see big discounts in the slumping stock market. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Delta to charge international fliers $50 for second checked bag

Delta, after a dismal first quarter, announces the fee, expected to bring in more than $100 million annually. The carrier and other airlines already were charging domestic travelers for a second bag.

Delta Air Lines Inc., the world's largest carrier and one of the busiest at Los Angeles International Airport, will begin charging international passengers a $50 fee to check a second bag.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

Chrysler creditors offer to forgive debt for a stake in combined company

Banks and hedge funds holding $6.9 billion in Chrysler debt have offered to forgive $2.5 billion of it in exchange for about a 40% stake in a Chrysler-Fiat alliance, two people briefed on the plan said...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Delays in product recalls tempt tragedy

Regulators may know about safety issues, but getting the information out of them is difficult.

Canada's Mega Brands Inc., maker of Mega Blox and other popular playthings, agreed to pay a civil penalty of

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

Fresh & Easy expansion to continue despite red ink

The British grocery chain will open its 64th store in the region today on the heels of reporting an annual loss of about $200 million. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Broadcom makes unsolicited bid for Emulex

The semiconductor maker's $764-million offer marks the second major technology deal announced in as many days as cash-rich companies see big discounts in the slumping stock market.

Another day, another takeover in the works. But this one's different: It's a hostile bid.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

U.S. to let some big banks repay bailouts early

Treasury Secretary Timothy F. Geithner, in defending the government's rescue efforts through the $700-billion TARP, says funds in the program will be sufficient to cover economic initiatives. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Watch PBS online? You can if you visit its new video portal

In allowing viewers to stream an array of its best-known shows, PBS is joining on-demand video sites like Hulu.com and YouTube -- places for younger consumers who aren't wedded to watching TV on a TV...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Yahoo plans more job cuts as sales, profit fall

The Internet company, which will shed about 675 workers, reports a 13% drop in first-quarter revenue. Also, chip maker AMD posts a wider loss.

Yahoo Inc. posted drops in revenue and profit in new Chief Executive Carol Bartz's first quarter on the job, and announced plans to cut about 675 workers from its payroll, as the tech industry showed signs of continued economic battering.

Source: L.A. Times - Business | 22 Apr 2009 | 7:00 am

Bank stocks pull market out of slump on soothing words from Geithner

The Treasury secretary's assertion that 'the vast majority' of banks have enough capital mollifies investors. The Dow jumps 127 points, and broader indexes also move higher. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

'Penguins' is doing swimmingly

The Nickelodeon TV series spawned by the 'Madagascar' movies is already the No. 3 show among kids 2 to 11. One...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Dole alleges fraud by witnesses in Nicaragua pesticide suit

A lawyer for Dole says men were recruited to pose as injured banana workers in a scheme to collect millions in damages. He says witnesses feared being killed if they testified about the fraud. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Offshore wind turbines get further boost from Obama administration

New rules to be released by the Interior Department pave the way for projects along the Atlantic Coast -- including one on Nantucket Sound opposed by the Kennedys. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Yahoo plans more job cuts as sales, profit fall

The Internet company, which will shed about 675 workers, reports a 13% drop in first-quarter revenue. Also, chip maker AMD posts a wider loss. ...
Source: RSS feed - channel BNPaperBusiness | 22 Apr 2009 | 7:00 am

Japan hit by first trade deficit in 30 years

Japan's exports almost halved in March from a year earlier but analysts said there were signs the sharp slide in shipments was easing
Source: Financial Times - US homepage | 22 Apr 2009 | 6:28 am

Little change in NZ markets

The New Zealand share market was little changed today another capital raising was carried out. The benchmark NZSX-50 index closed down 1.92 points, or 0.072 per cent, at 2662.939. Turnover was worth $78.4 million. There were...
Source: New Zealand Herald - Business | 22 Apr 2009 | 6:17 am

NZ dollar rally runs out of steam

The New Zealand dollar was mixed today when a rally faltered. Dealers said comments by Finance Minister Bill English about the bleak state of the government accounts introduced downward pressure on the day but when the currency...
Source: New Zealand Herald - Business | 22 Apr 2009 | 5:36 am

Sibling Rivalry: Mutual Funds Vs. ETFs (On the Street)

Mutual funds and ETFs have always made for strange bedfellows. While they compete for investor dollars, they may share the same corporate parent. And fund shops that don't offer ETFs are justifiably worried about losing business to exchange-traded investment vehicles. (ETFs are similar to mutual funds in that they hold many stocks, but ETFs trade as a unit throughout the day, whereas mutual funds are priced just once a day, according to their holdings.) ETFs now hold more than $500 billion in assets, including net inflows of $176 billion last year. And according to a recent report by Strategic Insight, ETF assets are on track to top $1 trillion by 2011. "The ETF world is slowly pushing the mutual fund world out of the picture,” says Robert Pavlik, chief market strategist for Banyan Partners LLC, an investment advisory firm in Palm Beach Gardens, Fla.

If mutual funds are getting to be a tougher sell, in fact, it's because fund companies are undercutting their own business with similar ETFs. Vanguard, for instance, offers 33 ETFs that are essentially just alternative share classes of their mutual funds. But the ETFs have annual expense ratios that are a fraction the mutual funds’, and the differences, while small, can add up over time. Vanguard recently launched a foreign stock ETF — the FTSE All-World ex-US Small Cap fund (VSS) with annual expenses of 0.38%, or $38 for every $10,000 invested — versus 0.6% for a Vanguard mutual fund that tracks the same index. Sure, the ETF only saves $22 a year, but compounded over time it can add up to thousands of dollars coming out of investors’ pockets.

The disparity can be particularly glaring in the fixed-income world, where every basis point matters since investors can’t count on big capital gains to offset slightly higher fees. Consider: State Street’s SPDR Barclays Capital Aggregate Bond ETF (LAG) costs just 13 basis points while the the firm’s SSgA Bond Market fund (SSBMX), which is actively managed, costs 50 points. The ETF and fund have the same average credit quality and hold bonds with similar maturities and durations. But the bond fund, which has been around a lot longer, has trailed its benchmark index by 2.6 percentage points a year, on average, over the last decade. The ETF, meanwhile, tracks the same index and would have beaten the bond fund hands-down over the same period, according to performance data from State Street.

Granted, there are plenty of cases where there’s no good ETF substitute for the mutual fund, and it may pay to suck up the fees and go with the active manager. The Hussman Strategic Total Return fund (HSTRX), for instance, has gained an average of 7.3% a year over the last five years, handily beating the market thanks to manager John Hussman’s flexible style — roaming freely among individual stocks, precious metals, foreign currencies and fixed-income securities — wherever he sees the most opportunity. Because most ETFs simply track an index, investors have to do their own homework about which sector of the market shows the most promise, and sometimes it’s best to leave that to the pros.

ETFs have their drawbacks too, of course. Because they trade like stocks, there’s a spread between the “bid” and “ask” price, which can cause investors to overpay a bit. And ETFs aren’t efficient for building or selling a position over time, as many pros recommend, since trading costs can winnow away their cost advantage. But some pros think investors should probably stick with the ETF, all else being equal. “Trying to make a case for a mutual fund,” says Pavlik, “can be difficult.”

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 22 Apr 2009 | 4:00 am

Enthusiasm Fades as Earnings Roll On (Market Update)

News at a Glance

• Earnings Flood: Three Dow components to report.
• Rocky Morning: Stocks look to open lower.
• Energy Demand: Oil inventories due out at 3 p.m.
• Buyer Beware: Roche's Avastin fails to meet endpoint.

The Lowdown

Another session of earnings reports had Wall Street feeling timid early Wednesday.

Stocks looked to open lower as earnings season continued and traders awaited updates on how several blue chips have curbbed their losses.

On the Dow, AT&T (T), Boeing (BA) and McDonald's (MCD) will release fist-quarter earnings today. These reports are significant because these firms are industry leaders; their results are more likely to be indicative of the performance of other companies.

In finance, Morgan Stanley (MS) and Wells Fargo (WFC) plan to release results, as well. Wells Fargo's esitmated results, which were released earlier this month, helped spark a rally.

In energy, oil prices rose ahead of the release of last week's crude inventories report. Shortly after 6 a.m., crude traded up 37 cents at $48.92 a barrel.

World markets were mixed. In Asia, Japan's Nikkei picked up 0.2%, while Hong Kong's Hang Seng lost 2.7%. In Europe, the U.K.'s FTSE stood up 0.6% in midday trading.

Corporate News

• Roche (RHHBY) cancer drug Avastin failed a clinical trial for its use in suppressing the recurrence of colon cancer. Avastin is part of the suite of drugs acquired by Roche in its buyout of Genentech, Reuters reported.
• Yahoo (YHOO) bested analysts' first-quarter expectations, earning 8 cents a share, down sharply from 37 cents a share in the year-ago period. The company also said it planned to trim roughly 700 additional jobs from its workforce.
• Advanced Micro Devices (AMD) posted a 21% drop in first-quarter sales, bringing in $1.18 billion. Still, that was good enough to top analysts' estimates. AMD pinned the blame on difficult economic conditions.

The Economy

• The crude inventories report for last week is scheduled to be released at 10:30 a.m. by the Energy Department. In the prior week, inventories were above the upper limit of the average range for this point in the year.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 22 Apr 2009 | 4:00 am

5 Stocks With Rising Dividends (Screens)

Dividends look unreliable lately, unless we compare them with just about everything else. In the first quarter of 2009, more members of the 500 index cut payments than in any other quarter since Standard & Poor’s began keeping records in 1955. Overall, dividends shrank by 16% from a year earlier. That’s nothing next to the profit plunge that made dividend cuts necessary. Last year, earnings for the 500 index fell 40%.

That other means of returning company profits to shareholders -- stock repurchases -- hasn’t proved nearly as reliable. In the fourth quarter of 2008, spending on repurchases plummeted 66% versus a year earlier. Companies usually announce fixed dividend rates but spend varied amounts to buy back shares. When stockholders reinvest their dividends, they buy more shares during downturns than at peaks, thereby buying low. Companies that favor share repurchases over dividends, it’s beginning to seem, buy high when profits are fat, and clutch cash when profits shrink.

Fortunately, plenty of companies are still increasing their dividend payments. In ordinary years, that’s a sign of financial strength and management confidence in continued prosperity. This year, dividend increases are perhaps also a sign that companies can be relied on in a difficult economy. Below are listed five S&P 500 members that have either introduced or boosted payments this month.

Coach (COH) shares jumped 15% Tuesday when the handbag maker beat Wall Street’s profit estimates for its third fiscal quarter and initiated a dividend. The yield works out to about 1.4%. Sales are still slipping, but the pace has slowed and management says business in North America is stabilizing. The company plans to increase the number of bags it offers for less than $300 in coming quarters in reaction to newfound frugality among shoppers. Shares go for 11 times forecast earnings.

Procter & Gamble (PG) recently increased its yearly dividend rate to $1.76 from $1.60, for a current yield of 3.4%. Sales for the personal products maker are seen falling 4% in its fiscal year ending June 30, since customers have traded down to less expensive products and stores have sold off inventory. But profits are forecast to increase, helped in part by falling commodity prices, and last year’s retail de-stock should provide for a sales-boosting restock once conditions improve.

Like many discount retailers, TJX Companies (TJX), which operates T.J. Maxx and Marshalls stores, isn’t struggling. Its recent sales are flat, and profits are beating expectations. Shares don’t carry much of a discount, at 15 times earnings, but a recent dividend boost puts the yield at 1.7%.

People’s United Financial (PBCT) is a bank, but don’t hold that against it. It has better asset quality than peers and plenty of excess capital. Its recent dividend increase was as small as they come -- to 61 cents a year from 60. Still, it speaks volumes compared with some big-name banks that have forsaken payments altogether in recent months.

Finally, Southern Company (SO) just raised its dividend for an eighth consecutive year. Current yield: 5.8%. Profits for the Altanta-based electric utility are expected to rise modestly this year and next. Fresh quarterly results are scheduled to be announced April 29.