Lowering expectations for stock returns

In uncertain times investors look to the past for clues to where stocks might be headed. And if U.S. market history is any guide, the outlook is still bright for those who can hang on. Despite some sharp ups and downs, stocks have returned an average of about 9% a year since 1900.
Source: Business and financial news - CNNMoney.com | 1 May 2009 | 4:00 am

Opening Bell: 04.28.09

London Bankers Look For Exits After Tax Raise (Bloomberg)
Apparently the recent push to 50-something-percent was just too much to take; it looks like our London brethren are looking for exits to decidedly less tax-involved areas.

Swine Flu Hits Ernst & Young In Times Square (WCBS)
We always knew the trouble would start* in accounting.

*Manhattan edition.
Deutsche Bank To Keep Ackermann (FT)
"The decision to prolong Mr Ackermann's tenure at the bank until 2013 is a sharp reversal of the bank's repeated indication that the Swiss-born banker was ready to step down when his current contract ends in May next year.

Clemens Börsig, chairman of Deutsche's supervisory board, said the decision "secures leadership continuity" for Germany's largest bank. The bank said the offer to Mr Ackermann was made at the unanimous request of the supervisory board, which met on Monday. Mr Ackermann had agreed to the request, the bank said."

In related news, Deutsche turned in its numbers:

"Deutsche Bank posted a better-than-expected net profit of €1.19 billion ($1.55 billion) for the three months ended March 31, compared with a net loss of €131 million a year earlier. Analysts polled by Dow Jones Newswires had forecast, on average, a €764 million profit.

The latest results included charges of €1.5 billion, including €1 billion in mark-downs, bringing total crisis-related charges to €10.7 billion. Year-earlier results, the bank's first quarterly net loss in five years, were hit by additional asset write-downs, lower revenue and a trading loss in a deteriorating market.

Revenue in the first quarter rose 57% to €7.2 billion from €4.6 billion."

Italy Seizes Millions In Assets From Banks (NYT)
"With municipal bond investigations spreading to Europe from the United States, Italian authorities have seized about $300 million in assets of four global banks -- JPMorgan Chase, Deutsche Bank, UBS and Depfa -- whose officials have been accused of fraud."

Wilbur Ross To Join PIPP Effort (WSJ)
Bill Gross just makes it look too magical to pass up, doesn't he?

Gulfstream, Cessna Sales to Slide for 2 Years as CEOs Shun Jets (Bloomberg)
Damn you, Congress. Damn you to hell.

Source: Dealbreaker | 28 Apr 2009 | 12:20 pm

Office Depot swings to loss, hurt by lower sales

Office Depot Inc. says Tuesday that it swung to a fiscal first-quarter loss, hurt by a global recession that has dented demand for office supplies, especially computers and other big-ticket items.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 12:08 pm

Fortis rebels disrupt EGM

Small shareholders, led by Mikael Modrikamen, an activist lawyer, are hoping to scupper the planned sale of Fortis Bank to BNP Paribas, the French bank, in favour of recreating a Belgian financial champion
Source: Financial Times - US homepage | 28 Apr 2009 | 12:07 pm

Pfizer posts lower quarterly net on slower sales

Pfizer, part of the Dow Jones Industrial Average, posts first-quarter net income that came in 2% lower than in the comparable period of 2008, as sales drop due to a combination of factors including currency fluctuations.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 12:04 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 | 28 Apr 2009 | 12:01 pm

Office Depot moves to 1Q loss, but tops Street (AP)

AP - Office Depot Inc. said Tuesday that it moved to a first-quarter loss because of charges for a restructuring that included facility closings, but adjusted results beat Wall Street's estimates.
Source: Yahoo! News: Business | 28 Apr 2009 | 12:00 pm

U.S. bank, flu fears chill economy hopes

LONDON/SINGAPORE (Reuters) - Fears about a possible global flu crisis and renewed worries over the capital health of some U.S. banks combined on Tuesday to rattle economists' hopes the financial system was stabilizing.
Source: Reuters: Business News | 28 Apr 2009 | 11:59 am

U.S. bank, flu fears chill economy hopes (Reuters)

Reuters - Fears about a possible global flu crisis and renewed worries over the capital health of some U.S. banks combined on Tuesday to rattle economists' hopes the financial system was stabilizing.

Source: Yahoo! News: Business | 28 Apr 2009 | 11:59 am

Nokia cuts jobs, to take on Apple

MONACO (Reuters) - Nokia Oyj will cut up to 360 jobs at Internet services unit as it combines offerings into its new Ovi Store, the world's top cell phone maker said on Tuesday.
Source: Reuters: Business News | 28 Apr 2009 | 11:56 am

WHO raises alert level as swine flu cases rise

The number of confirmed and suspected cases of swine flu worldwide rises as the World Health Organization increases its alert level on the deadly disease.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 11:55 am

Top Analyst Upgrades (EAT, DFS, KWK, UHS, TPX, VPHM)

These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street early this Tuesday morning: Brinker International (EAT) Raised to Buy at Argus Research. Discover Financial Services (DFS) Started as Buy at Jefferies. Quicksilver Resources (KWK) Raised to Buy at Jefferies. Universal Health (UHS) Raised to Buy at Deutsche Bank. Tempur-Pedic (TPX) [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 11:54 am

UK keeps EU working week opt-out

Ministers say they have seen off attempts to phase out the UK's opt-out from the European Working Time Directive.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 11:52 am

Weak sterling costs Britons £300 more for every 1500 spent in the US

The collapse of the pound against the dollar and the euro will hit the pockets of British holidaymakers.
Source: Telegraph Finance | 28 Apr 2009 | 11:47 am

Apple Dishes More Intrigue With the iPhone Lite and Apple Media Pad

Fast on the heels of a Verizon iPhone rumor comes word of the iPhone Lite and Apple Media Pad. From Ars Technica:

Apple is preparing to launch not one, but two new devices according to a new rumor, one of which could be coming as early as this summer. The sources claim that one device is a smaller, cheaper iPhone while the other is a “media pad” that could let users watch HD video, listen to music, and do other fun, touchscreeny things.

Apple is preparing to launch not one, but two new devices with Verizon, according to yet another new rumor. Two “people familiar with the matter” speaking to BusinessWeek have leaked details about an alleged “iPhone lite” and a tablet-like device, one of which may launch as early as this summer (we assume to coincide with the release of iPhone OS 3.0).

From BusinessWeek’s sources, there are very few details offered on the smaller, cheaper iPhone, but the other device would be a “media pad that would let users listen to music, view photos, and watch high-definition videos.” The media pad is supposedly smaller than Amazon’s Kindle, but with a larger touchscreen. “The media pad category might go to Verizon,” one of the sources is quoted saying. “We are talking about a device where people will say, ‘Damn, why didn’t we do this?’ Apple is probably going to define the damn category.”

Are these rumors more Apple hype, or do they have potential to come true? Only time will tell.

Source: Business Pundit | 28 Apr 2009 | 11:45 am

Top Analyst Downgrades (ARLP, BJS, CHKP, EP, FST, INFY, ISRG, STAR)

These are some of the top pre-market analyst downgrades and negative research calls from Wall Street we have seen early this Tuesday morning: Alliance Resource (ARLP) Cut to Market Perform at Wachovia. BJ Services (BJS) Cut to Underweight at JPMorgan. Checkpoint Software (CHKP) Cut to Hold at Deutsche Bank. El Paso (EP) Cut to Market Perform at Wachovia. Forest Oil [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 11:44 am

Wind farm firm cutting 1,900 jobs

Wind turbine-maker Vestas is to cut 1,900 jobs - mainly in the UK and Denmark - despite reporting a 70% rise in profits.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 11:44 am

Thomson cancels Mexico holidays

Holiday operators Thomson and First Choice have cancelled their flights to Mexico due to the outbreak of the swine flu virus.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 11:43 am

Administration is set to expand housing aid plan (AP)

AP - The Obama administration is expected to announce Tuesday that it is expanding its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers' bills on second mortgages.

Source: Yahoo! News: Business | 28 Apr 2009 | 11:40 am

Bristol profit hurt by dollar

NEW YORK (Reuters) - Bristol-Myers Squibb Co on Tuesday said its first-quarter profit slipped 3 percent, as negative foreign exchange factors and falling sales of its Erbitux cancer medicine more than offset higher revenue from other medicines.
Source: Reuters: Business News | 28 Apr 2009 | 11:36 am

Pfizer profit dips 2 percent, sales fall much more

Pfizer Inc. posts a 2 percent drop in first-quarter profit, as cost-cutting by the world's largest drugmaker couldn't offset big drops in sales for several medicines. The maker of...
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:32 am

Bristol-Myers posts 3.5 percent Q1 profit dip

Strong sales of two blockbuster drugs helped boost revenue for Bristol-Myers Squibb Co., but higher taxes and a litigation charge pulled down its first-quarter profit a bit. The maker of
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:30 am

Indications: U.S. stock futures drop on bank, flu fears

U.S. stock futures drop on Tuesday after a report the U.S. government is pressuring Citigroup and Bank of America to raise more cash and as the World Health Organization increases its threat level for the swine flu outbreak.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 11:30 am

American Greetings Announces Fourth Quarter Results

CLEVELAND, April 28 /PRNewswire-FirstCall/ -- American Greetings Corporation (NYSE: AM) today announced its fourth quarter results for the fiscal quarter ended February 28, 2009. ...
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:30 am

Tecumseh Products Company Announces First Quarter 2009 Earnings Call

ANN ARBOR, Mich., April 28 /PRNewswire-FirstCall/ -- Tecumseh Products Company (Nasdaq: TECUA, TECUB) announced today that it will release its first quarter 2009 results after...
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:30 am

The Silverfern Group Expands Merchant Banking Team - Kevin Smith Joins as Managing Director

NEW YORK, April 28 /PRNewswire/ -- The Silverfern Group, Inc. announced today that it has continued the expansion of its senior merchant banking team with the addition of Kevin...
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:30 am

FirstMerit Reports First Quarter 2009 EPS of $0.34 Per Share

AKRON, Ohio, April 28 /PRNewswire-FirstCall/ -- FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2009 net income of $29.4 million, or $0.34 per diluted share. This...
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:30 am

The Cavalier Homes Committee for Change Comments on Cavalier Homes' First Quarter Financial Results

Urges Stockholders to Vote FOR the Committee's Highly Experienced and Qualified Director Nominees on the GOLD Proxy Card FORT WORTH, Texas, April 28...
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:30 am

Pfizer profit beats forecast

NEW YORK (Reuters) - Pfizer Inc reported a better-than-expected first-quarter profit on Tuesday, as cost-cutting helped offset sharply lower sales of its Lipitor cholesterol fighter and its
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:28 am

Pfizer profit beats forecast

NEW YORK (Reuters) - Pfizer Inc reported a better-than-expected first-quarter profit on Tuesday, as cost-cutting helped offset sharply lower sales of its Lipitor cholesterol fighter and its Chantix smoking-cessation drug.
Source: Reuters: Business News | 28 Apr 2009 | 11:28 am

Pfizer profit beats forecast (Reuters)

Reuters - Pfizer Inc reported a better-than-expected first-quarter profit on Tuesday, as cost-cutting helped offset sharply lower sales of its Lipitor cholesterol fighter and its Chantix smoking-cessation drug.
Source: Yahoo! News: Business | 28 Apr 2009 | 11:28 am

Treasury has new mortgage incentives: official (Reuters)

Reuters - The U.S. Treasury Department will on Tuesday tap a $50 billion housing rescue fund to pay off mortgage investors and reduce monthly payments for millions of borrowers, said a senior administration official.
Source: Yahoo! News: Business | 28 Apr 2009 | 11:26 am

Treasury has new mortgage incentives: official

WASHINGTON (Reuters) - The U.S. Treasury Department will on Tuesday tap a $50 billion housing rescue fund to pay off mortgage investors and reduce monthly payments for millions of borrowers, said a senior administration official.
Source: Reuters: Business News | 28 Apr 2009 | 11:26 am

UPDATE 1-Lazard posts loss due to charges; fees plunge

NEW YORK, April 28 (Reuters) - Merger adviser Lazard Ltd posted a first-quarter loss due to charges for job cuts and business changes amid a protracted market slump that has slowed deal activity.
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:23 am

UPDATE 1-Lazard posts loss due to charges; fees plunge

NEW YORK, April 28 (Reuters) - Merger adviser Lazard Ltd posted a first-quarter loss due to charges for job cuts and business changes amid a protracted market slump that has slowed deal activity.
Source: RSS feed - channel BNewsBusiness | 28 Apr 2009 | 11:23 am

CNN.com: Pirate hostage sues employer

Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 11:22 am

Citi, BofA reportedly told to boost capital

Government regulators have told Bank of America Corp. and Citigroup Inc. that the banks need to increase their capital reserves based on preliminary "stress test" results, according to a report published Tuesday.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 11:21 am

Office Depot posts loss

BANGALORE (Reuters) - Office Depot Inc reported a quarterly loss on Tuesday as consumers and small business customers reduced their spending on large ticket items like furniture and computers.
Source: Reuters: Business News | 28 Apr 2009 | 11:21 am

Flu continues to weigh on markets

Global shares fall further in Tuesday trading as the swine flu outbreak continues to weigh on global markets.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 11:19 am

London Markets: Banks and travel firms pressure London shares

LONDON (MarketWatch) -- London shares dropped sharply on Tuesday, with bank stocks skidding on capital worries and shares of firms related to travel falling again amid continued concerns about a flu pandemic.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 11:19 am

$1 billion a day for stimulus

The federal government has made available more than $75 billion for stimulus projects in the 10 weeks since President Obama signed the $787 billion recovery package into law.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 11:17 am

Flu, banks to hurt stocks

U.S. stocks were poised to tumble at Tuesday's open as investors worried about the results of the government's stress tests of banks and the number of swine flu cases continued to rise.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 11:17 am

Stock futures lower on bank, global flu jitters (Reuters)

Reuters - Stock futures pointed to a lower open on Tuesday as a report that Bank of America Corp and Citigroup Inc may need more capital revived fears about the stability of the struggling financial sector.

Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 11:17 am

Stock futures lower on bank, global flu jitters (Reuters)

Reuters - Stock futures pointed to a lower open on Tuesday as a report that Bank of America Corp and Citigroup Inc may need more capital revived fears about the stability of the struggling financial sector.

Source: Yahoo! News: Business | 28 Apr 2009 | 11:17 am

Stock futures lower on bank, global flu jitters

NEW YORK (Reuters) - Stock futures pointed to a lower open on Tuesday as a report that Bank of America Corp and Citigroup Inc may need more capital revived fears about the stability of the struggling financial sector.
Source: Reuters: Business News | 28 Apr 2009 | 11:17 am

Airline shares fall again amid flu scare

GENEVA/TAIPEI (Reuters) - Global airlines were warned on Tuesday of significant falls in traffic due to the outbreak of swine flu, and their shares took another hit on fears that the fallout could be at least as bad as that of the 2003 SARS crisis.
Source: Reuters: Business News | 28 Apr 2009 | 11:09 am

Dubai property prices 'fall 41% in three months'

Property prices in Dubai plunged 41% during the first three months of this year, a report says.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 11:03 am

Swine flu keeps investors, businesses on edge (AP)

AP - The threat of a swine flu pandemic kept global businesses and investors on edge Tuesday, disrupting travel plans and sending stock markets into a tailspin as fears of more economic misery mounted.

Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 10:59 am

Fears of swine flu epidemic increase

Governments from Asia to Europe stepped up their response to the outbreak of deadly swine flu in the Americas as the WHO brought forward an emergency meeting and travel stocks were hit
Source: Financial Times - US homepage | 28 Apr 2009 | 10:57 am

Stock futures fall on swine flu, bank worries (AP)

AP - Wall Street is set to open lower Tuesday on worries about the spread of swine flu and the viability of banks.
Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 10:57 am

Viterra bids $1.1 billion for ABB Grain

Australia's ABB Grain Ltd. said Tuesday it has received a buyout offer potentially worth A$1.64 billion ($1.12 billion) from Canadian agribusiness Viterra Inc.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 10:54 am

Premier Inn hit by weak trading

Leisure firm Whitbread says its budget hotel chain Premier Inn has suffered amid the recession.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 10:53 am

Daimler loses $1.7 bln as car, truck sales fall

Daimler says it lost 1.29 billion euros ($1.7 billion) during the first quarter as sales of everything from luxury cars to 18-wheel trucks slumped.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 10:51 am

Daimler plunges to a €1.4bn loss

The German carmaker slumped to a loss of more than €1.4bn in the first three months of the year as the recession hit demand for luxury cars like Mercedes Benz
Source: Financial Times - US homepage | 28 Apr 2009 | 10:49 am

Movers & Shakers: Tuesday's biggest moving stocks

U.S. stocks expected to be actively traded Tuesday include blue chips Citigroup and Bank of America as well as Masco, U.S. Steel and Plum Creek Timber among others.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 10:48 am

Pontiac's road to oblivion

The Pontiac most of us know today really started in the early 1960s. Over the years, there have been several attempts to bring it back.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 10:42 am

Keep your nest egg on track

Question: I'm 40 years old, and according to an online calculator I used recently, I should now have $900,000 saved to assure a comfortable retirement. I'm guessing I have only about $100,000 (I'm afraid to look). What is the best way of making up the $800,000 gap over the next 25 years? --Jeff, Canton, Michigan
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 10:36 am

Europe Markets: Banks, travel firms drag European shares lower

European shares fell on Tuesday as bank stocks took a beating on capital concerns, while shares in travel and tourism firms were hit once again amid continued fears of an influenza pandemic.

Source: MarketWatch.com - Top Stories | 28 Apr 2009 | 10:34 am

BT offers home and mobile broadband for £16 a month

BT is to offer a combined mobile and home broadband package starting at £15.65 a month which it says is the cheapest package available.
Source: Telegraph Finance | 28 Apr 2009 | 10:30 am

U.S. to pay off mortgage investors

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 10:29 am

Swine flu fears dominate world markets (AP)

AP - World stock markets fell Tuesday as investors worried that any swine flu pandemic could derail a global economic recovery as the World Health Organization said it was now too late to contain the virus and urged countries to do what they can to mitigate the effects.

Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 10:28 am

Dubai, And Other Rich Nations, Hit The Road To Reality

The recently rich nations of the Middle East and Russia are learning that having a lot of money is not all that it is cracked up to be, especially when the money goes away. According to the AP, “Home prices in the once red-hot Middle East boomtown of Dubai plunged 41 percent in the first three [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 10:23 am

Farming the open seas

At age 17, Brian O'Hanlon dropped out of college and went on an angling adventure.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 10:17 am

BP shares remain a buy Questor says

Questor believes that BP's dividend is safe in the medium term.
Source: Telegraph Finance | 28 Apr 2009 | 10:12 am

The Government’s Forecast If Flu Problem Explodes: Two Million Americans Die

Somewhere in the basement of a government warehouse, federal employees with too little to do have come up with estimates of the what the effects of an all-out flu pandemic would be. Like most estimates, these have a significant chance of being wrong. They draw on theoretic models which cannot do much to take into account the most [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 10:08 am

Aer Lingus warns of bigger losses

Irish airline Aer Lingus says its 2009 losses will be more extensive than first feared after a sharp drop in first quarter revenues.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 10:07 am

How much power should the Fed have?

A major Obama administration plan to deal with financial companies too big to fail is becoming too big to zoom through Congress.
Source: Business and financial news - CNNMoney.com | 28 Apr 2009 | 9:58 am

U.S. urges BofA, Citi to increase capital: report

BANGALORE (Reuters) - U.S. regulators have told Bank of America Corp and Citigroup Inc they may need to raise more capital following stress testing of the two banks, the Wall Street Journal reported.
Source: Reuters: Business News | 28 Apr 2009 | 9:56 am

U.S. urges BofA, Citi to increase capital: report (Reuters)

Reuters - U.S. regulators have told Bank of America Corp and Citigroup Inc they may need to raise more capital following stress testing of the two banks, the Wall Street Journal reported.

Source: Yahoo! News: Business | 28 Apr 2009 | 9:56 am

Deutsche Bank surprises with €1.2bn profits

Profits at Deutsche Bank have soared in a further sign that the investment banking sector may be recovering.


Source: Latest Business News from Times Online | 28 Apr 2009 | 9:54 am

Flu fears linger on FTSE

London equities were not immune on Tuesday to the worries about the economic implications of the swine flu outbreak, but newsflow from five FTSE 100 constituents provided distraction. The benchmark index...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 9:53 am

Swine flu: Wall Street will be faced with contagion of its own

Swine flu has come to stay but it is unclear how our unwelcome guest will behave.
Source: Telegraph Finance | 28 Apr 2009 | 9:53 am

Asian share markets down with the flu

Japanese shares led a drop in Asia-Pacific equities on Tuesday as investor sentiment was whittled away by renewed fears about the US's largest banks and growing concerns over the swine flu outbreak.The...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 9:52 am

BP adjusts to $50 oil as profits collapse

LONDON (Reuters) - British oil major BP Plc said it was learning to live with oil at $50 per barrel by slashing costs, after the crude price collapse sent first-quarter profit plummeting and debt levels higher.
Source: Reuters: Business News | 28 Apr 2009 | 9:51 am

If The Government Owns The Car And Bank Industries, How Does It Get Money Back? (BAC)(C)(GM)(TM)

By the middle of the year, the federal government will own large, and in some cases, controlling interests, in two car companies and several major banks. There is a chance the the extent of rescue efforts and government ownership could move to auto parts suppliers and insurance companies. If the Treasury can pick up stock in Microsoft (MSFT) and Intel [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 9:44 am

Banks face hoarding more capital

Britain's banks may be forced to stockpile billions of pounds in extra capital to weather economic downturns in the future.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 9:42 am

Honda profits slump as sales fall

Honda reports a 77% decline in annual profits following a big drop in global sales.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 9:31 am

Pensioners' income 'may not meet their needs'

Many pensioners may not have enough income to meet their needs as they get older and need more care a think tank has warned.
Source: Telegraph Finance | 28 Apr 2009 | 9:26 am

Daimler reports loss as MercedesBenz sales slide

Daimler the world's secondlargest maker of luxury cars posted its first backtoback quarterly losses in at least 10 years as the recession led to a drop in sales of MercedesBenz cars and trucks.
Source: Telegraph Finance | 28 Apr 2009 | 9:24 am

Friends banks on Tesco deal as sales fall 40%

Friends Provident, the insurance group, is pinning its hopes on a tie-up with Tesco to provide life insurance protection to the supermarket group's personal finance division to reverse a 40 per cent revenue fall during the first quarter.


Source: Latest Business News from Times Online | 28 Apr 2009 | 9:03 am

The Economy Looks Beyond The Recession To Disease And Terrorism

There are many fears about the swine flu outbreak.  It is not simply that it could cause the death of thousands or in the case of a pandemic, perhaps millions.  Other fears are economic in nature based on the reality that tens of millions of very sick people would drive a weak global economy into [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 9:00 am

London stocks on backfoot (AFP)

AFP - London stocks slid in opening trade on Tuesday caused by fears that the deadly swine flu outbreak could hamper economic recovery.

Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 8:56 am

When The Government Funds Companies To Fire People

GM (GM) must fire another 21,000 factory workers, as part of a plan to get an additional $11.6 billion in aid from the federal government. The restructuring plan would give creditors stock in the company in exchange for $27 billion in debt obligations. The UAW retirement and medical funds will have to take at least [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 8:51 am

FTSE 100 falls as markets hit by fears over banks

Concerns over swine flu poor corporate news and renewed fears about US banks push world markets into the red.
Source: Telegraph Finance | 28 Apr 2009 | 8:43 am

Media Digest 4/29/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, world health officials are fighting to contain the new flu. Reuters reports that the government may be pressing Citigroup (C) and Bank of America (BAC) to raise more money. Reuters writes that GM (GM) has offered its final survival plan. Reuters reports that the UAW will end up owning 55% of Chrysler. Reuters writes that Democrats [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 7:57 am

William Morris and Endeavor announce plans to merge

William Morris and Endeavor two of Hollywood's biggest talent agencies which represent clients such as Robert De Niro Denzel Washington and John Travolta have announced plans to merge.
Source: Telegraph Finance | 28 Apr 2009 | 7:46 am

Falling oil price hits BP profits

A fall in the average selling price of oil from $91 a barrel to $41 in the first quarter of the year hit profits at BP, which cut costs and increased output in response
Source: Financial Times - US homepage | 28 Apr 2009 | 7:34 am

Friends Provident sales slide 40pc in first quarter

Friends Provident the British life insurer reported a 40pc drop in its firstquarter sales but said a new deal to sell insurance through retail giant Tesco should boost sales in future.
Source: Telegraph Finance | 28 Apr 2009 | 7:24 am

Asia Markets And Europe Open 4/28/2009

Markets in Asia were lower. The Nikkei was down 2.7% to 8,494. The Hang Seng was off 2.1% to 14,532. The Shanghai Composite was off .2% to 2,401. At the open in Europe, the FTSE was down 1.6%. The Dax fell .8% to 4,657, and the CAC 40 was down 1.9% to 3,043. Data from Reuters and MarketWatch. Douglas A. McIntyre [...]

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Source: 24/7 Wall Street | 28 Apr 2009 | 7:24 am

Deutsche Bank back in black

Better trading for many of the German bank's most important debt businesses helped it lift net income to €1.2bn, which was above analysts' expectations and compares with a net loss of €141m in the same period of 2008
Source: Financial Times - US homepage | 28 Apr 2009 | 7:21 am

Ad firm WPP sees revenues slide

Advertising giant WPP reports a fall in underlying revenue and says a recovery is unlikely until next year.
Source: BBC News | Business | World Edition | 28 Apr 2009 | 7:13 am

WPP warns on full-year profits as sales tumble

WPP today warned of a profits shortfall in 2009 after the marketing giant admitted that it had missed its budgets in the first quarter of 2009 as like-for-like sales tumbled by 5.8 per cent.


Source: Latest Business News from Times Online | 28 Apr 2009 | 7:10 am

Bratz maker MGA Entertainment ordered into receivership

Founder Isaac Larian and MGA Entertainment were involved in 'fraudulent transfers of assets and violations of Mattel's ownership,' a judge's order says. Larian plans to appeal. ...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

William Morris-Endeavor merger deal prompting exodus of agents

With the two Hollywood talent agencies planning to combine operations, top people have resigned or are negotiating their exits.

Even before the talent agencies William Morris and Endeavor formally approved a merger Monday afternoon, several of the agents of those firms were already involved in high-stakes negotiations -- to get out.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

Ed Hardy wines? Christian Audigier's branding machine grinds on

Audigier is building, slowly and frighteningly, a 360-degree brand bubble for his clientele.

There are no rules in branding, save for the law of the jungle. We live in a world where it's possible to buy Nascar brand meat snacks, Burger King-themed underwear, Harley-Davidson cake-decorating kits. Money is no respecter of decency and logic. Personally, I love beer-flavored frosting.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

AT & T Center is 1st downtown L.A. high-rise to win green group's gold-level rating

REAL ESTATE
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

L.A. County incubator gives firms, jobs a start

The Business Technology Center and several other of the county's key development programs appear spared from budget cuts. Some small-business programs are even slated for expansion.

Kelly Tompkins credits a fellow tenant at the business incubator run by Los Angeles County for helping him land venture capital recently for his tech start-up, AdventureLink.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

First Bank in Beverly Hills still open

Failure of First Bank of Beverly Hills, actually located in Calabasas, causes confusion and worry among clients of the St. Louis financial institution with two branches in Beverly Hills. ...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

AT & T Center is 1st downtown L.A. high-rise to win green group's gold-level rating

REAL ESTATE

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

Ed Hardy wines? Christian Audigier's branding machine grinds on

Audigier is building, slowly and frighteningly, a 360-degree brand bubble for his clientele. There are no rules...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

Pontiac's demise gets a muted response

The once-dynamic GM brand, scheduled to be phased out by the end of 2010, has been fading for decades, critics, fans and dealers say.

The decision by General Motors Corp. to eliminate the Pontiac brand disappointed many people, but it didn't surprise anyone.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

GM proposes painful downsizing in bid for survival

The automaker would to shed 21,000 workers, 2,600 dealers, $44 billion in debt and four brands, including Pontiac, while making the U.S. government its majority owner. ...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

GM proposes painful downsizing in bid for survival

The automaker would to shed 21,000 workers, 2,600 dealers, $44 billion in debt and four brands, including Pontiac, while making the U.S. government its majority owner.

The drastic reinvention plan that General Motors Corp. unveiled Monday would leave the onetime world goliath a smaller, leaner company -- with its legendary Pontiac brand discontinued -- but puts the automaker on a collision course with bondholders that could still land it in Bankruptcy Court.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

William Morris-Endeavor merger deal prompting exodus of agents

With the two Hollywood talent agencies planning to combine operations, top people have resigned or are negotiating their exits. ...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

First Bank in Beverly Hills still open

Failure of First Bank of Beverly Hills, actually located in Calabasas, causes confusion and worry among clients of the St. Louis financial institution with two branches in Beverly Hills.

When regulators last week seized First Bank of Beverly Hills, a one-branch institution located not in Beverly Hills but in Calabasas, it caused a bit of trouble for the totally separate, St. Louis-based First Banks Inc., which operates 214 offices in five states under the name First Bank, including two locations in . . . Beverly Hills.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

CalPERS moves to beef up disclosure rules for outside marketers

The huge public pension fund may require investment companies that it does business with to disclose fees paid to placement agents. ...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

Bratz maker MGA Entertainment ordered into receivership

Founder Isaac Larian and MGA Entertainment were involved in 'fraudulent transfers of assets and violations of Mattel's ownership,' a judge's order says. Larian plans to appeal.

Isaac Larian, the outspoken entrepreneur who made a fortune off the popular Bratz dolls, was ordered by a federal court judge late Monday to hand control of his company to a temporary receiver.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

L.A. County incubator gives firms, jobs a start

The Business Technology Center and several other of the county's key development programs appear spared from budget cuts. Some small-business programs are even slated for expansion. ...
Source: RSS feed - channel BNPaperBusiness | 28 Apr 2009 | 7:00 am

CalPERS moves to beef up disclosure rules for outside marketers

The huge public pension fund may require investment companies that it does business with to disclose fees paid to placement agents.

The leader of the California Public Employees' Retirement System -- the country's largest public pension fund -- on Monday ordered its staff to draft a policy requiring investment companies hired by the fund to disclose fees paid to the firms' outside marketers.

Source: L.A. Times - Business | 28 Apr 2009 | 7:00 am

Unions could own 55pc of Chrysler

United Auto Workers union to get a majority stake in the carmaker if members approve concessions.
Source: Telegraph Finance | 28 Apr 2009 | 6:55 am

BP profits slump 62% on plunging oil price

BP's profit plunged by 62 per cent in the first quarter of 2009 after oil prices fell from July's record highs and demand for crude and gas declined in weakening economics.


Source: Latest Business News from Times Online | 28 Apr 2009 | 6:36 am

Textile manufacturer with 470 workers goes under

Textile manufacturer Lane Walker Rudkin Industries Limited has been placed in receivership by its bankers. The LWR operations were unprofitable and the company had incurred a substantial increase in bank debt, said receivers Brian...
Source: New Zealand Herald - Business | 28 Apr 2009 | 6:10 am

Currency: Dollar slides on global flu concerns

The New Zealand dollar continued to slide today as it and the Australian dollar bore the brunt of selling amid concerns of a global swine flu epidemic. The kiwi ended the domestic session near the bottom of the day's range between...
Source: New Zealand Herald - Business | 28 Apr 2009 | 5:50 am

Swine flu outbreak adds to Mexican tourism woes

The travel industry was already reeling from a rash of drug-world violence and the effects of the global recession.

Reeling from a rash of drug-world violence and the effects of the global recession, Mexico's tourism is now taking a beating from the swine flu outbreak that is suspected in the deaths of 149 people and prompted the closing of theme parks, soccer stadiums and other public places.

Source: L.A. Times - Business | 28 Apr 2009 | 5:26 am

BAC, C Take Issue With Suggestion They Need More Capital

Regulators have told Bank of America Corp. and Citigroup Inc. that the banks may need to raise more capital based on early results of the government's so-called stress tests of lenders, according to people familiar with the situation.

The capital shortfall amounts to billions of dollars at Bank of America, based in Charlotte, N.C., people familiar with the bank said.

Executives at both banks are objecting to the preliminary findings, which emerged from the government's scrutiny of 19 large financial institutions. The two banks are planning to respond with detailed rebuttals, these people said, with Bank of America's appeal expected by Tuesday.

We are given to understand that BAC will be objecting on the grounds of "shrinkage" (Lewis was in the pool), which gave us an inaccurate representation of things, and Citi's yet to come up with something. Do Vikram Pandit a solid and offer a good excuse now. He'll pick the best one from comments in the morning.

Fed Pushes Citi, BofA to Increase Capital [WSJ]

Source: Dealbreaker | 28 Apr 2009 | 5:08 am

Allianz, American Express unload ICBC shares

Industrial and Commercial Bank of China, the world's biggest bank by market value, said Allianz and American Express had sold shares in the Chinese lender as the shares are freed from lock up
Source: Financial Times - US homepage | 28 Apr 2009 | 5:01 am

Fonterra lifts payout by 10 cents to $5.20

Fonterra says it has clawed back sufficient gains on this season's milkflows to lift its forecast payout to farmers by 10c per kg of milksolids to $5.20 per kg. The payout will be lifted from the most recent projection of $5.10...
Source: New Zealand Herald - Business | 28 Apr 2009 | 3:47 am

Union to vote for control of Chrysler

The United Auto Workers union will own 55 per cent of a restructured Chrysler, the embattled US carmaker, and its healthcare trust will get a seat on the board of directors if union members vote to approve contract concessions later this week.


Source: Latest Business News from Times Online | 28 Apr 2009 | 3:39 am

Swine Flu Virus Infects World Stock Markets (Time.com)

Time.com - If officials classify the outbreak as a pandemic the world economy could suffer even more
Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 3:35 am

'Challenging' conditions hit BNZ's half-year result

BNZ reported a 3.8 per cent fall in half-year headline net profit to $400 million, as increased bank funding costs and an expected rise in bad debt charges hit earnings. The bank said net operating income rose 2.7 per cent from...
Source: New Zealand Herald - Business | 28 Apr 2009 | 3:00 am

Power cuts unlikely, but thermal power may be needed, says Brownlee

Power cuts are unlikely but thermal generation may need to be increased after the Cook Strait power cable failed last night, Energy Minister Gerry Brownlee said today. He blamed the previous Labour government for not investing...
Source: New Zealand Herald - Business | 28 Apr 2009 | 2:30 am

Viaduct hikes deposit rates, plays down loss of govt guarantee

Viaduct Capital announced this morning that it had amended its prospectus and raised interest rates for deposits following the withdrawal of its Crown Guarantee by Treasury last week. Viaduct owner Nick Wevers said that he was...
Source: New Zealand Herald - Business | 28 Apr 2009 | 2:00 am

R&D spend rose to $2.14 billion last year, says Stats NZ

Research and development spending reached $2.14 billion in the year to last September, up 17 per cent from the amount spent two years earlier, Statistics New Zealand (SNZ) says. Primary industries were the target for 19 per cent...
Source: New Zealand Herald - Business | 28 Apr 2009 | 1:30 am

Court freezes assets of Pang, companies (AP)

AP - Federal regulators have won a court order freezing the assets of financier Danny Pang, whom they accuse of defrauding investors of hundreds of millions of dollars.
Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 1:26 am

Telecom puts ultra-fast broadband options to Govt

Telecom is proposing two options for achieving the Government's ultra-fast broadband goals. At the end of March, Communications and Technology Minister Steven Joyce announced public-private partnerships would be established to...
Source: New Zealand Herald - Business | 28 Apr 2009 | 1:00 am

How the major stock indexes fared Monday (AP)

AP - The swine flu gave Wall Street a reason to turn cautious Monday. The Dow Jones industrial average gave up a midday recovery and retreated about 0.6 percent as the swine flu's death count in Mexico grew to about 150 people from 100 and travel warnings were issued.
Source: Yahoo! News: Business | 28 Apr 2009 | 12:56 am

How the major stock indexes fared Monday (AP)

AP - The swine flu gave Wall Street a reason to turn cautious Monday. The Dow Jones industrial average gave up a midday recovery and retreated about 0.6 percent as the swine flu's death count in Mexico grew to about 150 people from 100 and travel warnings were issued.
Source: Yahoo! News: Stock Markets News | 28 Apr 2009 | 12:56 am

Jobless on the increase across Tasman

The number of unemployed people in parts of Sydney has almost doubled in the space of a year, while one in 16 homeowners are defaulting on their mortgages. News Limited reports a new study has found the unemployment rate is particularly...
Source: New Zealand Herald - Business | 28 Apr 2009 | 12:30 am

Be aggressive Bollard, says BNZ economist

The BNZ wants the Reserve Bank to send a strong signal to the market that it is prepared to be aggressive in cutting interest rates. The market is divided between whether Reserve Bank Governor Alan Bollard will trim the official...
Source: New Zealand Herald - Business | 28 Apr 2009 | 12:00 am

Write-Offs: 04.27.09

$$$ SEC Freezes Assets Of Danny "This Is A Ponzi Scheme" Pang [Street Insider]

$$$ GM tells creditors to swap for equity or face bankruptcy [MarketWatch]

$$$ Louis E. Caldera is sorry about the plane thing. [City Room]

Source: Dealbreaker | 27 Apr 2009 | 11:55 pm

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

AP - How far the Dow Jones industrial average has fallen or advanced each trading day since Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection on Sept. 15. Since Lehman's fall, which touched off a paralysis of the credit markets and deepened the recession, the stock market has gone through an extended period of volatility that subsided during December but that has returned in 2009. The numbers are the closing levels for the Dow:
Source: Yahoo! News: Stock Markets News | 27 Apr 2009 | 11:51 pm

US to take majority GM stake

The US government is to take majority control of General Motors in a sweeping restructuring plan that involves more plant closures and job losses and an aggressive debt-for-equity swap
Source: Financial Times - US homepage | 27 Apr 2009 | 11:08 pm

NEC and Renesas merge as chipmakers struggle

NEC Electronics and Renesas are preparing a survival-driven merger that could create Japan’s biggest chipmaker.


Source: Latest Business News from Times Online | 27 Apr 2009 | 11:01 pm

Revenue to pour quarter of its £4bn budget into battle against tax evasion

HM Revenue & Customs is to spend £1 billion on enforcement and compliance this year to cut tax avoidance and evasion by £2.4 billion, Britain's most senior tax collector said last night.


Source: Latest Business News from Times Online | 27 Apr 2009 | 11:00 pm

Small finance houses lack controls to keep out clients on rogue list, says FSA

The Financial Services Authority (FSA) said last night that many small and medium-sized financial institutions have insufficient command and controls to prevent them doing business with those on the Government's blacklist of financial sanctions.
Source: Latest Business News from Times Online | 27 Apr 2009 | 11:00 pm

Rescued UK banks sell cheap home loans to Irish

Banks controlled by British taxpayers are offering mortgages to first-time buyers in the Irish Republic at half the rate that they are available in the UK.


Source: Latest Business News from Times Online | 27 Apr 2009 | 11:00 pm

Sir Anthony O'Reilly seeks buyer for struggling Independent

Sir Anthony O'Reilly is actively seeking to sell The Independent newspaper 11 years after taking control of the title.
Source: Latest Business News from Times Online | 27 Apr 2009 | 11:00 pm

Posner Says U.S. Will Spend $13 Trillion to Fight a Depression

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 10:56 pm

Moffett Says Wireless Plans Declined by Half in One Year

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 10:40 pm

Argus Research's Tynan Says GM Should Cut More Brands

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 10:30 pm

Hear: News Of Their Demise

On today's Planet Money:

-- Ryan Avent had a great job, writing for the Economist's Free Exchange blog. Not quite two weeks ago, Ryan Avent got lured into another terrific opportunity: blogging for Portfolio. Which today announced that it was shutting down.

-- At least Ryan Avent's got good company in the rest of the media. Newspapers around the country are cutting their staffs and trying to figure out how to stay afloat. NPR's David Folkenflik checks the future with media entrepreneur Steve Brill and media thinker Jay Hamilton

-- Did you help break the global economy, or even the local one? Planet Money has a new call-in line for your confessions. It's (202) 371-1775.

Bonus: The Ben & Jerry's effect.

Download the podcast; or subscribe. Intro music: Kate Bush's "Running Up That Hill." Find us: Twitter/ Facebook/ Flickr

Matt Mendola writes:

I just listened to the April 24 podcast and thought I would write in to describe an example of the "denomination effect" I experienced yesterday.

I went down to the local Big Apple gas station to buy a pint of Ben & Jerry's and noticed a sign taped to the counter asking customers to buy rolls of quarters. This gas station does a lot of business selling cigarettes, soda and cheap beer, High Gravity Lager in particular. It didn't register why they'd have so many quarters on hand, but the guy behind me, who was, in fact, about to buy three or four pints of High Gravity, immediately knew what it was, and commented about the economy, and how people are going through their couch cushions and such, scrounging up loose change for their day to day purchases.

I bought a roll, just to have quarters stockpiled for laundry. I felt a little guilty handing the cashier a twenty, even though he thanked me profusely.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 10:18 pm

5 charged in 'nightmare' $70M mortgage scheme (AP)

AP - More than 1,000 people were defrauded out of about $70 million by a group advertising the dream of homeownership in what turned out to be a nightmare Ponzi scheme, federal and Maryland officials said Monday.

Source: Yahoo! News: Business | 27 Apr 2009 | 9:50 pm

Drugmaker shares rise on swine-flu outbreak (AP)

AP - The swine flu outbreak boosted shares of makers of of flu treatments, vaccines and tests Monday.
Source: Yahoo! News: Stock Markets News | 27 Apr 2009 | 9:47 pm

No One Expects The Spanish Inquisition!

Face it. There is no escape and you banks are so unpopular now that any hope you had at generating sympathy is gone gone gone. We want to know your customers. We want to know when you knew them. We want to know how you met them. We want to know who they know that you know. Brace yourself. This might be a bit uncomfortable.

The U.S. Internal Revenue Service (IRS) is preparing to pursue other foreign banks for allegedly facilitating tax evasion by wealthy Americans following its high-profile case against Switzerland's UBS, an IRS official said on Monday.

UBS, Switzerland's largest bank, in February acknowledged that it helped U.S. clients conceal assets from the U.S. government. It agreed to pay a $780 million fine and identify some of its American clients.

Meanwhile, don't think we don't see you, UBS, over there in the corner trying to get the United States to just drop the whole thing and let you gently set your clients adrift before Switzerland signs a new tax treaty with the United States to address the problem going forward (i.e. after you've moved the biggest clients to offshore subsidiary asset managers).

IRS says set to pursue "other banks" on tax evasion [Reuters]

Source: Dealbreaker | 27 Apr 2009 | 9:26 pm

Baidu Floats Past Targets (BIDU)

Chinese online search leader Baidu, Inc. (NASDAQ: BIDU) has reported its quarterly earnings.  Its earnings came in at $0.76 net EPS and posted $0.86 non-GAAP EPS on $118.6 million in revenue versus estimates from Thomson Reuters of $0.76 in non-GAAP EPS and $115.95 million in revenue. The company also sees revenues at $157 to $161 million [...]

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Source: 24/7 Wall Street | 27 Apr 2009 | 9:23 pm

Government's Role In Financial Crisis Scaring The Beejesus Out Of Ken Griffin

During a panel at the Milken Institute's Global Conference in Beverly Hills this afternoon, our favorite midwestern hedge fund manager let down his guard and finally let us in. Apparently considering the event a safe place to let it all out, Griffin shared his hopes (turning in a 750% return for '09)* and fears with the audience, which include but are in no way limited to a li'l fella named T. Geith and spiders.

"The role of government in the United States, one of the great free markets in the world, has become frightening," Griffin said today during a panel discussion at the Milken Institute Global Conference in Beverly Hills, California.

"We cannot fuel constructive policy by pandering to anger," Griffin said at today's conference. "This is a disaster that everyone in our economy participated in creating. I'm not trying to take Wall Street and the banking system off the hook, but we need to find a way to move past this crisis."

Citadel's Griffin Calls Role of U.S. Government 'Frightening' [Bloomberg]

*He didn't actually verbalize this desire but I'm feeling very close to him right now and am confident it's on the list.

Source: Dealbreaker | 27 Apr 2009 | 9:04 pm

Dear Mr. President

Larry J. sent the White House this letter after hearing our interview with Priya Raghubir on Friday's podcast. He writes:

At the end of the interview, the professor theorizes that if the government issued government rebates as travelers checks that would be accepted by retailers, then there would be a greater likelihood the money would be pumped back into the economy rather than left in the bank where they go to deposit a standard government check. Says Priya Raghubir, "the minute [the tax stimulus] goes into the bank account it becomes savings, it becomes real money".

I will go the professor one better: The IRS should issue all refunds as Visa Debit Cards instead of government checks. In 2007, 114 million people received tax refunds totaling $248.6 billion. This is 63% more than President's Bush's Tax Rebate program which went out in the form of checks and ended up as "real money" in people's checking accounts. The private sector has already initiated similar programs. Recently Verizon and Staples sent my earned product rebates as Visa debit cards. This $120 ended up back in circulation instead of deposited in my checking account, which was the fate of rebate checks that I used to get.

So, if Professor Raghubir's studies are correct, 114,000,000 taxpayers with Visa debit cards could help overcome the Keynesian "paradox of thrift" (which I also learned about from Planet Money) that our current economic environment is fostering. And the best part: this solution is free and does not burden the taxpayers.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 8:45 pm

Confidential To All The Dealbreaker Thespians: Have We Found The Gig For You

Here at Dealbreaker we are well aware of the fact that there exists a small but passionate group of financial services hacks in the audience just dying to give acting a try, but have yet to do so because of a crippling fear of the prospect of a complete and total career change. Because we're always working for you, we've done some digging and found the perfect crossover gig in which to dip your toes. While Madoff didn't enlist the services of actors for his scheme (that we know of), lots of smaller scams, like Houston-based JaxTrece, are relying on individuals who can both act and talk shop. That could be you!

Curiously, in early October, Ramon sent an e-mail to an Austin actors group: She was seeking a male actor in his 50s or 60s with a New York accent to make an appearance at what she said was a Houston fundraising event. Another document filed in a lawsuit and said to have been found in Ramon's computer describes Scrabanek's back story down to his children's names and his residence (the Time Warner building in New York City), and details his attitude: "typical Jewish New York . . . doesn't really care about anyone but yourself, snotty and stuck up."

Some now wonder whether the man they met was actually an actor earning $500 an hour to play a part in what the Justice Department says was an investment scam that defrauded investors of millions of dollars.

Source: Dealbreaker | 27 Apr 2009 | 8:25 pm

Swine Flu: Apocalyptic Forerunner or Business as Usual?

There’s nothing quite like a good plague scare to get people pontificating. Here’s a roundup of swine flu opinion from the past few days.

From a scientific standpoint, it’s apparently not a question of if, but when a flu pandemic will hit. David Bradley warns:

As I’ve discussed previously on Sciencebase, there are countless latent diseases in hosts as rodents, birds, and cattle lying ready and willing to make the species leap to humans and decimate our populations. Whereas for the last ten years or so bird flu has been the focus of much research it was always more likely that a potentially lethal strain of virus would emerge from another species and not necessarily in Asia.

President Obama used the swine flu outbreak to bring attention to the need for more and better scientific research, as it is a ‘key element of the nation’s security’. He told the New York Times:

“Science is more essential for our prosperity, our security, our health, our environment and our quality of life than it has ever been before,” Mr. Obama said. “If there was ever a day that reminded us of our shared stake in science and research, it is today.”

Quickly, don your paper masks! Stay indoors! The dirty Mexican pig influenza is here, to sicken you! Wocka wocka. Did you know that America had another swine flu panic, in 1976? Let’s reminisce, and laugh.

Politico pointed out that the Obama administration is heading into its first public health outbreak without a chief public health official or appointees in many key positions.

The Service Employees International Union has launched an online petition criticizing Republicans for delaying the confirmation of a Health and Human Services secretary in the face of a swine flu outbreak. The union accuses Senate Republicans of delaying the confirmation of nominee Kathleen Sebelius to “curry favor with extremist outside groups” and depriving the department of leadership as the nation confronts a potential flu pandemic.

I looked at a couple of theories about pandemics from top economic mindsover on Bizzia.

In a 2005 report for the World Bank, Milan Brahmbhatt looked at the socio-economic impacts of avian flu. Bird, swine, it’s all the same. While Brahmbhatt’s report addresses a lot of issues specific to avian flu, he also includes plenty the non-poultry industry analysis of a worldwide flu pandemic.

And what would we do without Google? Track the damage with the interactive swine flu map. The good news: so far Alaska’s still safe!

Image Credit: sarihuella, Flickr

Source: Business Pundit | 27 Apr 2009 | 8:25 pm

'Duh' In Detroit

All day, I've been looking around for something amazing to post about the news from Detroit. General Motors is axing 2,600 dealers, 21,000 workers and four brands (including Pontiac and Hummer) -- and leaving the U.S. in the position of owning at least half the company. Chrysler, meanwhile, says it has reached a deal with the United Auto Workers Union, with the terms for the rank-and-file vague enough that one guy on an assembly tells us he's guessing it means a pay cut, but who knows how big.

And then there's this banner headline that appeared on the Wall Street Journal's homepage around 2 p.m.:

"GM CEO says company needs to be run simpler, leaner in future."

Sure. Let's try that.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 8:12 pm

Presented By:

Source: Dealbreaker | 27 Apr 2009 | 7:54 pm

Who's Got Money To Spare And Is A Lover o' Ladies?

CNBC's interviewing people on the street who think it's a "Fairy Godmother" which is hilar, but let's get serious and figure out who the anonymous donor is that's gifted at least 13 women-run universities with nearly $70 million. Erin Callan doesn't have the cash on hand, and while he considers himself a ladies man, and would love a free pass to walk into any freshman dorm and start hocking his product to nubile coeds, Jimmy Cayne smoked all his charitable donations over spring break. So, who is it? George Soros? Female and fag* aficionado Jim Simons? You tell us.

*Cigarettes, people. Cigarettes.

Source: Dealbreaker | 27 Apr 2009 | 7:54 pm

Verizon iPhone a Blow to AT&T

Verizon may be coming out with its own iPhone next year. USA Today reports:

Verizon (VZ) and Apple (AAPL) are discussing the possible development of an iPhone for Verizon, with the goal of introducing it next year, people familiar with the situation say.

It would mark the first time Apple has produced a version of the iPhone for a CDMA wireless network, which is different from AT&T’s GSM technology. Vodafone, co-owner of Verizon Wireless, already sells the iPhone in Europe.

The New York-based telecom entered into “high-level” discussions with Apple management a few months ago, when CEO Steve Jobs was overseeing day-to-day business, these sources say. They declined to be named because they aren’t authorized to speak publicly.

Jobs is on medical leave until June, but the conversations are continuing, they say. Apple declined to comment.

Nielsen’s Roger Entner, who was interviewed for the report, says that AT&T would be the biggest loser in a Verizon iPhone deal. IPhone users disappointed with AT&T’s reliability would jump ship to Verizon, the article quotes Entner as saying. Meanwhile, Apple would benefit from those users, who would need to buy new iPhones.

PC World comments:

The news about talks between Apple and Verizon could also be an attempt by Apple to enhance its bargaining position with AT&T over the exclusive contract, Redman said.

But the ultimate value of having the iPhone in the inventory is to attract subscribers to lucrative data plans, the analyst said. Some customers will pay $100 or more a month to have an iPhone voice and data plan just to enjoy iPhone’s superior browsing and other functionalities, they noted.

“If you talk to iPhone users, they will tell you there is no substitute for an iPhone, and without one, you are operating at somewhat of a disadvantage,” Mathias said. “That’s a reason Verizon would want to sell it.”

I hope that Apple goes ahead with the Verizon deal. It’s the best option for consumers, the industry, and Apple itself.

Source: Business Pundit | 27 Apr 2009 | 7:50 pm

How Boston's on top of foreclosures

In 2008 Boston had 1,215 foreclosed properties. But it wasn't as bad as other cities have experienced. Monica Brady-Myerov reports on how Beantown's prevention strategies have helped the city keep on top of the foreclosure crisis.
Source: Marketplace | 27 Apr 2009 | 7:38 pm

GM's brand strategy right on the money

With General Motors pulling its Pontiac brand off the market, some analysts think the automaker should keep going and dump more brands. But commentator David Kiley says GM has gone far enough.
Source: Marketplace | 27 Apr 2009 | 7:38 pm

Guess The Dow

The Dow is toying around with 8000, and that just presents too much of a "Guess the Dow" temptation to resist.

Closest to the close without going under (reverse Price is Right rules, you know) wins. Bets are closed 10 minutes before the bell. In the event of a tie, the earlier entry wins. You know the drill.

Go!

Source: Dealbreaker | 27 Apr 2009 | 7:20 pm

No Flu For You

Somewhere in the financial journalism rulebook there is a clause that forbids a disaster story to be written unless canned goods in the form of Campbell Soup Co. (CPB) and Gold are both spiking to back-up the "panic theory." But despite the devastation of Swine Flu (you couldn't come up with a more nefarious sounding plague except, perhaps, if you resorted to "The Black Death," or somesuch- I mean seriously, who is going to be scared by "bird flu" or "avian flu." Who cares if Big Bird is running a fever anyhow?) and now a 6.0 magnitude earthquake 19 miles south-southeast of Tixtla, Guerrero (strong enough to shake the capital) and the tragedy of vicious gang warfare along the border, Gold and Campbell Soup Co. aren't doing anything at all exciting. Even Olin (OLN), fine purveyor of quality ammunition, is languishing today. It's like "it's different this time" or something.

Gold Futures Pull Back in New York [TheStreet.com]

Mexico hit by 6.0 magnitude earthquake: USGS [Reuters]

Source: Dealbreaker | 27 Apr 2009 | 7:13 pm

Nuclear frisson in Europe's energy sector

Franco-German industry: The fallout from the split between Siemens and Areva illuminates the problems with such ventures and with Europe's energy policy
Source: Financial Times - US homepage | 27 Apr 2009 | 7:09 pm

Levitt Sees Courts Handling Cases of Corporate Twitter Misuse

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 6:59 pm

OTC markets start to fight back

Over-the-counter derivatives were among the most lightly regulated parts of the markets, but leaving it to lawmakers to tighten regimes can be risky
Source: Financial Times - US homepage | 27 Apr 2009 | 6:57 pm

McCotter Says GM Doing Everything to Avoid Bankruptcy

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 6:56 pm

Malvey Sees Investors Looking for Preservation of Capital

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 6:41 pm

Wachter Sees U.S. Mortgage Rates as Low as 4.5%

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 6:39 pm

Poem: 'Smart' by Shel Silverstein

Many of you nominated "Smart" by Shel Silverstein, a poem about kids and money, to be read on air. Ms. Simms' 4th, 5th and 6th graders in Fullerton, Calif., read the poem.
Source: Marketplace | 27 Apr 2009 | 6:30 pm

Some CEO perks buried in the footnotes

There has been a lot of outcry over Wall Street's big bonuses. But many other CEO's are getting posh perks too. Kai Ryssdal speaks with Footnoted.org's Michelle Leder, who has been tracking some of the perks.
Source: Marketplace | 27 Apr 2009 | 6:25 pm

FDA's overseas offices met with caution

The U.S. Food and Drug Administration opened field offices internationally after several scares over tainted drugs abroad. Critics say the increased scrutiny feels like a crackdown. Raymond Thibodeaux reports.
Source: Marketplace | 27 Apr 2009 | 6:24 pm

Will Endeavor, William Morris clash?

Talent agencies William Morris and Endeavor are expected to announce a merger, which could create a star chamber big enough to pull back power from Hollywood's big studios. But will their cultures clash? Jennifer Collins reports.
Source: Marketplace | 27 Apr 2009 | 6:24 pm

Deal may reduce auto workers' benefits

The United Auto Workers has reached a tentative agreement with Chrysler. Ashley Milne-Tyte reports on how auto workers' benefits will be impacted after negotiating is over.
Source: Marketplace | 27 Apr 2009 | 6:24 pm

Mexico's ill economy ailing with the flu

Mexico's economy is taking a beating with high unemployment and drug violence. Now add the swine flu outbreak to the list. Dan Grech reports on how the flu outbreak is hurting Mexico's already weak economy.
Source: Marketplace | 27 Apr 2009 | 6:24 pm

Japan predicts record fall in output

Tokyo tore up its growth forecasts, predicted a record drop in output and sought parliament's backing for a fresh stimulus to tackle 'economic crisis'
Source: Financial Times - US homepage | 27 Apr 2009 | 6:24 pm

Stressing Out Over FASB

A few weeks ago we blogged about the change to Financial Accounting Standards Board's accounting rule 157. The new rule allows banks to value the assets they can't sell -- the ones that have been eating holes in their balance sheets -- using their own "judgment."

On Friday, officials at the Federal Reserve
announced that the new guess work won't cut it, at least not for considering what would happen to the banks in a deep and lasting recession.

[I]n order to reflect greater uncertainty about realizable losses in stressful conditions, supervisors did not incorporate the new FASB guidance.

Translation: the Federal Reserve wants these stress tests to unearth what a loss would look like in the case of financial Armageddon. Officials want this number to be the bogey man who will scare bankers' in their beds at night. By comparison, FASB's rules are the equivalent of rose-tinted glasses.

As pointed out by the Financial Times this morning, harsher rules will be used to determine banks' capital requirements, while FAS 157 allows banks to avoid losses on their balance sheet:

This two-track approach could create an additional buffer between the amount of capital lined up now and the way banks report the erosion of that capital.

The change to FAS 157 has caused controversy since it was enacted last month. Supporters have applauded FASB for protecting banks from unusually stormy financial waters, while those who are opposed to the change think it's a perversion of the rules of financial markets.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 5:29 pm

Merkle Says GM, Chrysler to Survive in Different Form

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 5:26 pm

Swine Flu Hits The Markets

Global stock markets are lower as more cases of swine flu are reported worldwide.

Mexico is already bracing itself for the economic fallout of swine flu. Since the outbreak became public, a number of countries are banning imports of Mexican meat and some countries are imposing travel restrictions to Mexico just as the summer tourist season gets into full swing.

Authorities in Mexico have requested that bars and movie theaters close during the outbreak. They are also urging people to stay home, which could lower demand and have a negative impact on GDP and financial assets.

Pharmaceutical companies may be the only winners in a pandemic, as demand for medicine to treat the virus would surge.

Bloomberg reports that swine flu is worrying global health organizations:

In the U.S., 20 people have confirmed cases of swine flu linked to the Mexican virus, and the acting head of the Centers for Disease Control and Prevention said officials expect more severe infections to begin showing up. The World Health Organization called the outbreak a "public health emergency of international concern."

Reuters calculates that SARS cost East and Southeast Asia $18 billion, or 0.6 percent of GDP.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 5:22 pm

Swine Flu FAIL

Source: Business Pundit | 27 Apr 2009 | 4:37 pm

Guy Has Very Bad Luck

Portfolio magazine announced today that it's shutting down.

And man, talk about timing. Blogger Ryan Avent had just left the Economist's Free Exchange to take over (sometime Planet Money guest) Felix Salmon's Portfolio blog, Market Movers. Salmon moved over to blog at Reuters.

Avent announced he was posting online at Portfolio on April 15. The headline: "The End, For Now."

Salmon writes:

"I feel particularly bad for the amazing Ryan Avent, who's got off to a truly smashing start at Market Movers and who looks to have jumped ship from the Economist at exactly the wrong time."

Hats off to Avent, who's posted twice today despite the situation at Portfolio, including this cool take on the NYT's Tim Geithner feature.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 4:18 pm

Kubarych Sees End of Debilitating Housing Declines in 2010

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 4:05 pm

A Long Goodbye

We first talked to listener Daniel Cross back in January, right after he learned that he would be required to take a furlough from his job as a circuit designer. At the time, he said he wasn't sure whether it was a "prudent move to conserve cash to ride out the bad time or a last ditch effort to try to save something from total collapse." A few weeks ago we checked back in on Daniel, and he told us layoff rumors had taken over the office, making it difficult to get any work done. Daniel said he felt like he was working for a zombie company. Today he sends this update:

As I prepared to take my mandatory 1 week unpaid leave, I was approached by my management about whether I would be interested in a position out of state with the company that was acquiring my design organization. At that time, I expressed general interest, but after considerable discussion with my family and soul-searching, I elected not to accept the offer.

Meanwhile, the design I am working on is highly desired by the customer, and is considered too critical for those involved to miss a week of work for it. So I ultimately will not be forced to take a furlough after all.

Instead, this site will close after the sale occurs, and since I won't be joining the new company I will be released; at which time I suppose I will have ample opportunity to complete my home improvements, in between bits of job-hunting.

With our futures now a certainty, and the "gallows humor" losing much of its entertainment value, my co-workers and I (even the ones not joining the new company) are actually spending more time working on chip design. The mood is somewhat melancholy, with lots of "goodbyes" going around, but there is also some camaraderie and hopefulness. Perhaps it is wishful thinking, or perhaps not. Check back in a few months!

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 4:00 pm

March Of The Zombies

Just catching up to a great take on banks' balance sheet problems from Calculated Risk.

They take the next step with our simplified chart of a balance sheet, making room for toxic legacy assets on the left. And then there are the question marks:

These "??????" assets are either future retained earnings or additional money from the government. Although the bank is balance sheet insolvent, the bank will never be business insolvent because the government will continue to provide money to cover losses.

What Treasury Secretary Geithner is doing right now "is known as the 'Zombie' bank approach," the site says. And maybe that's okay, Calculated Risk argues, provided enough healthy banks remain to pull the economy along. But with Citigroup and Bank of America comprising 40 percent of the U.S. bank system, the zombie scenario is not so comfortable.

Bonus: Calculated Risk on Liquidity and Solvency, Part I

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 3:45 pm

5 Companies & Industries Benefiting from the Swine Flu

The last time we saw the swine flu was in 1976, when it killed a New Jersey army recruit. Today, the swine flu is back with a vengeance, infecting hundreds of people in Mexico, killing at least 18 of them, and spreading into five US states, according to late-breaking New Scientist reports.

Is it a pandemic? No, but the CDC, stock market, and Department of Homeland Security are acting like it could be. That means more Tamiflu, more biosuits, and more business for these five companies and industries:

1. Roche and GlaxoSmithKline

The manufacturer of Tamiflu is enjoying status as one of two drugmakers whose products, according to the CDC, can treat the swine flu. The Department of Homeland Security has also released 12.5 million doses of Tamiflu and Relenza (zanamivir, the CDC-approved treatment), meaning that it–and citizens around the country–will be requiring more of the stuff. Additionally, Gilead Sciences, which invented Tamiflu and still receives sales royalties from Roche, is up 2.5% today in the market.

2. Novavax and BioCryst Pharmaceuticals

These two companies are helping develop a swine flu vaccine. The Street reports that both companies saw a jump in share value on Friday, when Mexico reported 60 swine flu-related deaths.

3. Health Insurance

If you’re concerned about catching the swine flu, but lack insurance, now might be the time to get some. Both Tamiflu and Relenza are prescription drugs, meaning that stocking up on them sans insurance could set you back more than $200 when you factor pricey pills and a doctor’s visit. The CDC also recommends increased travel health coverage, such as Medivac and medical tests, to ensure your safety if you travel during an outbreak. Coverage saves you additional costs–and benefits the industry.

4. The Media

Nothing drives people to news outlets like a pandemic. The swine flu has readers compulsively listening to news updates and refreshing news websites. This is a boon for ad-driven media, which will enjoy increased CPM revenues–and authority–for at least a week.

5. 3M

The Mexican government handed out six million face masks to residents of Mexico City yesterday, according to the AP. I’ll venture to guess that at least some of those masks originated at 3M, whose 8000 N95 respirator is government-approved for protection against microbes. American instapreneurs like this person are also looking to capitalize off a potential respirator craze.

Source: Business Pundit | 27 Apr 2009 | 3:43 pm

KFC Offers Free Grilled Chicken Today

KFC is offering free grilled chicken today, making it the latest fast-food restaurant to jump aboard the give-it-away bandwagon. According to UnThinkKFC.com, you can walk into any KFC today and sample their new Kentucky Grilled Chicken. The new product is marinated, slow-roasted, and better for you than the usual greaseball KFC chicken.

Note that KFC is giving out a single piece of chicken at select locations only. This is not a free meal. But it is mighty effective advertising.

Source: Business Pundit | 27 Apr 2009 | 3:11 pm

When Your Poker Face Cracks

After our podcast segment about the psychology of spending dollars and coins, Mary Hoddinott writes:

I sometimes play poker at one of the mountain town casinos in Colorado. The gambling is limited stakes, with a $5 maximum bet. Although I could have sworn I didn't have a "tell" -- I did, a huge one. When I had a hand I felt good about, I would toss out a red $5 chip. If I didn't feel so good about my hand, I would put out five white $1 chips in order to save my red chips.

I was appalled when I realized what I was doing. I stopped, of course, and now I watch for the same behavior in others. I would bet the best poker players recognize this behavior intuitively. I didn't have a name for it until I heard about the Denomination Effect on your podcast.

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Source: NPR Blogs: Planet Money | 27 Apr 2009 | 3:04 pm

Stamenkovic Sees `Subdued' Increase in Treasury Yields

Source: Bloomberg - All Podcasts | 27 Apr 2009 | 2:50 pm

GM Bids Farewell to the Pontiac

A novel use for the Firebird.

GM revealed today that it will phase out the Pontiac brand by 2010. From the Wall Street Journal: http://online.wsj.com/article/BT-CO-20090427-709022.html

General Motors Corp. (GM) said Monday it will cut 21,000 hourly jobs and eliminate its Pontiac brand by the end of next year as part of a stepped-up restructuring plan.

The company said it will focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - as it looks to make fewer different models and focus on product development programs. Production of the Pontiac brand will end by next year.

“You have a strategy that wins or you have to stop,” (one official) said. “We didn’t have a strategy that allowed us to win with the Pontiac brand.”

My first car was a Pontiac Grand Am SE Coupe. I intermittently called her White Lightning (when I was able to hit the governor on freeway straightaways) and P.O.S. (the many times I had to take her to the shop). In ten years together, we gathered 10 speeding tickets, three new radiators, two new sets of spark plugs, and innumerable quirks not worth fixing. For example, the fact that her headlights went off momentarily every time I turned on the windshield wipers.

I eventually sold her for $400 and bought a Honda. I don’t regret the move, but I do miss the days when I could race around in White Lightning without worrying about something falling off. My Honda saves me repair costs and speeding tickets, but it lacks the Pontiac’s edge, which, between repair bills, could be rather exciting.

It is sad to lose a classic American brand, even if its quality suffered in recent years.

Source: Business Pundit | 27 Apr 2009 | 2:29 pm

Miseducation Blooper

Source: Business Pundit | 27 Apr 2009 | 2:07 pm