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Opening Bell: 05.01.09Directors Lend Full Support To Lewis (WSJ) "A person familiar with the deliberations said the 18-member board isn't considering pushing out or easing aside the 62-year-old Mr. Lewis following Wednesday's shareholder vote to strip the CEO of his duties as chairman. The subject of succession didn't come up during a board meeting Wednesday or in recent discussions with regulators." Senate Has Moment Of Sanity, Won't Let Judges Alter Mortgages (NYT) "The House of Representatives, meanwhile, overwhelmingly approved a bill backed by the Obama administration that would limit the ability of credit card companies to charge high fees and penalties. The bill, approved 357 to 70, still faces obstacles in the Senate, where -- as the action on Thursday illustrated -- the industry has more clout, particularly among Republicans and moderate Democrats. In recent days the White House, partly in response to polls showing the significant public outrage over high fees charged by credit card companies, has begun to work for its passage." Switzerland Asks US Court To Halt UBS Tax Case (Reuters) "Switzerland, which is trying to defend its jealousy guarded tradition of bank secrecy, asked the United States last weekend to drop the case against UBS in return for a new tax accord with Washington." Brits Blame Bankers For Financial System Woes (CNBC) The Treasury Select Committee made a series of recommendations and said the possible split of retail and investment banking arms remained a "live issue which requires further debate". Citi Sells Japanese Securities Unit (Bloomberg) AIG, Committee Agree On Date For Testimony (WSJ) 
Source: Dealbreaker | 1 May 2009 | 12:59 pm Change will headline at Buffett's 'Woodstock for capitalists'Berkshire Hathaway shareholders are on their way to Woodstock this weekend. Or rather they are heading for Omaha and the company's annual gathering known as "Woodstock for capitalists".Source: Telegraph Finance | 1 May 2009 | 12:06 pm US Supreme Court Justice Souter plans to retireUS Supreme Court Justice David Souter plans to retire, giving President Barack Obama his first chance to make an appointment to the nation's highest court, a government official said.Source: Financial Times - US homepage | 1 May 2009 | 12:05 pm Stock futures rise on economic hopes (Reuters)
Source: Yahoo! News: Stock Markets News | 1 May 2009 | 12:00 pm Stock futures rise on economic hopes (Reuters)
Source: Yahoo! News: Business | 1 May 2009 | 12:00 pm Fantasy Fund Manager: 98pc of players have made moneyThe top portfolios in our Fantasy Fund Manager game are already up by more than 20pc.Source: Telegraph Finance | 1 May 2009 | 11:57 am 9 stories: What they pay for health insuranceSource: Business and financial news - CNNMoney.com | 1 May 2009 | 11:54 am UPDATE 2-Shell repairs Nigeria flowstations, output resumes* Shell completes repairs at Bomu manifold in Niger DeltaSource: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:53 am Top 10 Analyst Calls (AMSF, AMCC, DMND, DLB, GDP, FLO, QLGC, RHT, SONS, URBN)These are ten of the top research calls with upgrades and downgrades from Wall Street analysts this Friday morning: Amerisafe (AMSF) Raised to Outperform at Oppenheimer. Applied Micro Circuits (AMCC) Raised to Outperform at Oppenheimer. Diamond Foods (DMND) Started as Buy at KeyBanc. Dolby Labs (DLB) Cut to Neutral at JPMorgan. Goodrich Petroleum (GDP) Started as Underweight at Thomas Weisel. Flowers [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 11:51 am Stocks set for gainsU.S. stock futures rose modestly Friday morning, ahead of a barrage of economic reports.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 11:44 am Provident Financial Services, Inc. Announces Quarterly Results and Declares Quarterly Cash DividendJERSEY CITY, N.J., May 1 /PRNewswire-FirstCall/ -- Provident Financial Services, Inc. (NYSE: PFS) (the "Company") reported operating income, excluding a non-cash...Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:43 am Chrysler is in court today for bankruptcy hearingChrysler's first hearing in a New York courtroom Friday morning may offer the first clue as to whether a quick, "surgical" bankruptcy is possible. The nation's third-largest automaker filedSource: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:38 am UPDATE 1-James River Coal Q1 profit beats Street* Says amended existing CAPP utility contract May 1 (Reuters) - James River Coal Co's quarterly profit beat expectations, boosted by a 73 percent jump in the average price of Central Appalachian coal...Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:33 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 11:31 am Chrysler files for bankruptcy; inks Fiat dealDETROIT/WASHINGTON (Reuters) - Chrysler LLC filed for bankruptcy on Thursday and announced an industry-changing deal with Fiat, after being pummeled by sliding auto sales and unable to reach agreement on restructuring its debt.Source: Reuters: Business News | 1 May 2009 | 11:30 am Chrysler files for bankruptcy; inks Fiat deal (Reuters)Reuters - Chrysler LLC filed for bankruptcy on Thursday and announced an industry-changing deal with Fiat, after being pummeled by sliding auto sales and unable to reach agreement on restructuring its debt.Source: Yahoo! News: Business | 1 May 2009 | 11:30 am Great Southern Bancorp, Inc. Reports Quarterly Earnings of $1.29 Per Common ShareEarnings affected by significant gain related to acquisition and certain investment securities impairment write-downs Financial Results for the Quarter:Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:30 am HMS Holdings Corp. Announces First Quarter 2009 Financial ResultsRevenue Up 28%, EPS Up 77% Over Prior Year NEW YORK, May 1 /PRNewswire-FirstCall/ -- HMS (Nasdaq: HMSY) today announced financial results for its first quarter...Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:30 am Domtar Corporation reports preliminary first quarter 2009 financial resultsTICKER SYMBOL UFS (NYSE, TSX) Company generates free cash flow despite costs for downtime and a steep decline in pulp prices (All financial...Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:30 am Stock futures up on economic optimismNEW YORK (Reuters) - Stock index futures pointed to a higher open on Friday on optimism the economic slump is waning, but a reassessment of the recent sharp market run-up could keep gains in check.Source: Reuters: Business News | 1 May 2009 | 11:28 am UPDATE 2-Warburg Pincus seeks buyer for Archimedes -source* Warburg Pincus exploring options for Archimedes -sourceSource: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:15 am Dean Foods Company Reports Strong First Quarter ResultsEarnings per Share Increase 129% to $0.48, Adjusted Diluted Earnings per Share Increase 126% to $0.52 Reiterates Full Year Guidance for Adjusted Diluted Earnings of...Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:15 am Aon profit rises, but misses forecasts (Reuters)Reuters - Aon Corp , the world's largest insurance broker, said on Friday that first-quarter profit rose 28 percent, helped by restructuring efforts, but revenue slipped as falling investment income fell.Source: Yahoo! News: Business | 1 May 2009 | 11:10 am Aon profit rises, but misses forecastsNEW YORK (Reuters) - Aon Corp , the world's largest insurance broker, said on Friday that first-quarter profit rose 28 percent, helped by restructuring efforts, but revenue slipped as...Source: RSS feed - channel BNewsBusiness | 1 May 2009 | 11:10 am Aon profit rises, but misses forecastsNEW YORK (Reuters) - Aon Corp , the world's largest insurance broker, said on Friday that first-quarter profit rose 28 percent, helped by restructuring efforts, but revenue slipped as falling investment income fell.Source: Reuters: Business News | 1 May 2009 | 11:10 am London Markets: British shares steady ahead of holidayBritish shares post modest losses in trading on Friday, with declines from financial stocks weighing ahead of a long holiday weekend.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 11:04 am Commodities Corner: China's gold buy raises eyebrows for right reasonsThe precious-metals market took notice for all the right -- but not-so-obvious -- reasons when China announced last week that it ramped up its gold reserves by 76% in the last six years.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 11:00 am US stock futures edge up before manufacturing data (AP)AP - Stocks are set to begin May with a modest gain ahead of a key reading on U.S. manufacturing.Source: Yahoo! News: Stock Markets News | 1 May 2009 | 10:58 am Corrections: Flu situation evolving rapidly, WHO saysOn May 1, a story about the swine-flu outbreak incorrectly stated the date the World Health Organization raised its flu alert level to phase five from phase four, and the timing of remarks by WHO Assistant Director General Keiji Fukuda. The alert level was raised on Wednesday. Fukuda spoke Thursday. See corrected story.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 10:53 am CORRECT: Flu situation evolving rapidly, WHO saysThe World Health Organization says there is no evidence to warrant a further rise in its flu-alert level as it continues to monitor the swine-flu outbreak that originated in Mexico, where officials are encouraged by a slowing in the number of new cases. Mexicans are encouraged to stay home for the Cinco de Mayo holiday.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 10:47 am Mortgage approvals hit house price revival hopeHopes of a quick recovery in the housing market received a setback today after the Bank of England revealed that mortgage approvals were slightly weaker than forecast. Source: Latest Business News from Times Online | 1 May 2009 | 10:40 am SMFG buys Citi Japan units for $5.9 billion (Reuters)
Source: Yahoo! News: Business | 1 May 2009 | 10:39 am SMFG buys Citi Japan units for $5.9 billionTOKYO (Reuters) - Sumitomo Mitsui Financial Group will buy Citigroup's Japanese broker and key investment banking units for $5.9 billion and look to form a financial services powerhouse through an alliance with Daiwa Securities Group.Source: Reuters: Business News | 1 May 2009 | 10:39 am Get a 240GB iPod. Yes, 240GBLike many consumers, John Mayberry was looking to upgrade his iPod. The IT technician had 50,000 songs stored on his computer, but his 60-gigabyte iPod maxed out at 12,000 songs. And Apple wasn't helping. Last year the company discontinued its largest iPod, a 160GB model, citing concerns about its design. Currently the largest iPod that Mayberry can buy is 120GB - or half the size of his music library.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 10:35 am Britain's FTSE succumbs to modest profit-taking (AP)
Source: Yahoo! News: Stock Markets News | 1 May 2009 | 10:34 am 5 tips on buying a foreclosed home1. Finding one has become easierSource: Business and financial news - CNNMoney.com | 1 May 2009 | 10:26 am Chrysler: details of the bankruptcy planThe Obama administration summarised its plan for Chrysler's Chapter 11 bankruptcy and Chrysler's alliance with Fiat as follows:Source: Telegraph Finance | 1 May 2009 | 10:26 am Mitsubishi UFJ says it now expects loss for 2008HONG KONG (MarketWatch) -- Mitsubishi UFJ Financial Group Inc., Japan's biggest bank by assets, Friday unveiled a massive earnings revision, saying it now expects a deep net loss for fiscal 2008, instead of the modest profit it had forecast in February.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 10:24 am Japanese bank warns of 2009 lossJapan's biggest bank warns investors it is going to make a net loss of $2.6bn in 2009.Source: BBC News | Business | World Edition | 1 May 2009 | 10:20 am Lenders object to Chrysler planA group representing 20 debt holders in Chrysler is set to object to the firm's Chapter 11 bankruptcy move.Source: BBC News | Business | World Edition | 1 May 2009 | 10:17 am Cash for your clunkerA congressional effort to subsidize new cars sales for consumers who scrap old ones is gaining momentum, as leaders seek to help the struggling auto industry.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 10:14 am Just-in-case prep for swine flu at workIn a conference room in McLean, Va., a handpicked group of senior operatives hunch over laptops and watch wall-mounted video screens. The "war room" is connected electronically to similar rooms all over the world, where people are using state-of-the-art technology to test various hypothetical disaster scenarios and make sure the organization is prepared to respond.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 10:14 am Indications: Stock index futures edge higherU.S. stock index futures edge higher Friday, pointing to modest gains for the start of May trading after Wall Street finished April with one of its strongest monthly boosts in years.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 10:10 am Citi selling Japanese unit in $7.9 bln dealCitigroup says Friday it’s selling its Japanese domestic securities business to Sumitomo Mitusi Banking Corp. in a deal with a total cash value of 774.5 billion yen ($7.9 billion).
Source: MarketWatch.com - Top Stories | 1 May 2009 | 10:05 am Home Sales Show No Sign Of Recovery As Mortgage Rates Hit New LowsFreddie Mac (FRE) reports that mortgage rates are at record lows with 30-year fixed-rate loans down to 4.78% The drop does not seem to be doing much for the housing market. Recent data released by Case-Schiller shows that home prices in the top 20 US cities are still falling rapidly. The data covers a period that [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 10:04 am What Chrysler's bankruptcy meansChrysler LLC filed for bankruptcy Thursday. But a deal has been reached to combine the company with Fiat in order to allow Chrysler to stay in business.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 10:01 am UK's largest dealership blasts scrappage schemePendragon, Britain’s largest car dealership, today dealt a blow to the Government’s plan to boost motor sales through a scrappage scheme, stating that the proposal will have “very little if any” impact. Source: Latest Business News from Times Online | 1 May 2009 | 9:59 am Bankruptcies reach record levelsThe number of people being declared bankrupt in England and Wales has hit a new record, the government says.Source: BBC News | Business | World Edition | 1 May 2009 | 9:57 am Government Moves Toward Releasing Detailed Stress Test ResultsShares in some large banks are about to plunge. Reuters reports that “U.S. officials are leaning towards announcing the `stress test’ results of individual banks next week instead of just summary results.” That is likely to cause an exodus from the stocks of the firms that do badly, which may be to the government’s advantage. The [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 9:51 am Fiat CEO eyes Opel deal after Chrysler: report (Reuters)Reuters - Italian automaker Fiat SpA's next project is a deal with Germany's Opel after a landmark alliance with U.S. car maker Chrysler, Fiat's chief executive said in an interview published on Friday.Source: Yahoo! News: Business | 1 May 2009 | 9:50 am Fiat CEO eyes Opel deal after Chrysler: reportMILAN (Reuters) - Italian automaker Fiat SpA's next project is a deal with Germany's Opel after a landmark alliance with U.S. car maker Chrysler, Fiat's chief executive said in an interview published on Friday.Source: Reuters: Business News | 1 May 2009 | 9:50 am Sergio Marchionne: Fiat's man of the momentSergio Marchionne 56 is riding high after the success of turning around Fiat. We give a flavour of the motor industry's man of the moment.Source: Telegraph Finance | 1 May 2009 | 9:45 am Global stocks flat in holiday trade, data eyed (Reuters)
Source: Yahoo! News: Stock Markets News | 1 May 2009 | 9:40 am Citi sells Japanese unit for $7.8bnCitigroup is selling its Japanese securities business and key investment banking business to Sumitomo Mitsui Financial Group as part of a deal worth $7.9bn that will significantly boost the troubled US bank's capitalSource: Financial Times - US homepage | 1 May 2009 | 9:36 am Citigroup (C) Starts To Dig Out Of Its HoleBank examiners wearing black suits and white shirts have already been to the Citigroup (C) headquarters in Manhattan to tell CEO Vikram Pandit how badly his company did on recent stress tests performed by the government on America’s 19 largest banks. Pandit and his staff have fought the conclusions, but in a fight with the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 9:34 am Bankers made 'astonishing mess'Bankers made an "astonishing mess" of the financial system and the effects will be felt for generations, MPs say.Source: BBC News | Business | World Edition | 1 May 2009 | 9:27 am GM says to talk to KDB on GM Daewoo stakeSEOUL (Reuters) - General Motors Corp will talk to the Korea Development Bank (KDB) about selling a stake in GM Daewoo, if that would help its South Korean carmaking unit in the long term, Nick Reilly, President GM Asia Pacific, said on Friday.Source: Reuters: Business News | 1 May 2009 | 9:24 am Amazon (AMZN) Kindle Users Are Old, FeebleSomeone at technology news site, Cnet, came up with the clever idea of running a poll to learn the age of people who use Amazon’s miracle book reader, the Kindle. Seven hundred people responded, which puts the survey somewhat below what researchers would expect from Gallup, but it is a reasonable straw poll, nonetheless. What surprised [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 9:13 am Why Chrysler Doesn’t MatterBy the time Chrysler filed for Chapter 11 yesterday, it was no longer a large American company. Although the firm is private, most estimates are that the No.3 US car company may only have $35 billion in revenue this year. If that is true, it would not be among the top seventy companies in the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 9:03 am Bust businesses up 56% amid record bankruptciesCompany insolvencies soared by 56 per cent in the first three months of the year as the number of people declaring themselves bankrupt hit record levels. Source: Latest Business News from Times Online | 1 May 2009 | 8:53 am Informa in Swiss move to escape higher UK taxesInforma Group the publisher of 275yearold maritime newspaper Lloyd's List is changing its residence to Switzerland to escape higher corporate taxes imposed by Alistair Darling.Source: Telegraph Finance | 1 May 2009 | 8:52 am AAPL Weekly Headline Roundup: May 1From 24/7 Wall St. partner Apple Investor News: Aside from the iPhone-Verizon rumor and iPhone apps passing the one billion mark, there were some interesting headlines this week that speak to Apple’s future direction: • A story in AppleInsider quotes sources “who’ve proven extremely reliable” that Apple will cut prices on iMacs and MacBook lines to boost [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 8:48 am Buffett fans set for 'capitalist Woodstock'Warren Buffett's Berkshire Hathaway had its worst year ever in 2008. But for the throng gathering in Omaha for Saturday's annual shareholder meeting, that's ancient history.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 8:48 am Chinese manufacturing continues upward momentumChina's vast manufacturing sector gained further momentum last month according to the latest survey figures.Source: Telegraph Finance | 1 May 2009 | 8:43 am Chrysler worker: 'Roller coaster isn't over'The deal that is supposed to save jobs has put Chrysler hourly workers out of a job for at least the next month.Source: Business and financial news - CNNMoney.com | 1 May 2009 | 8:28 am Mexico shuts down to control fluMexico is poised to begin a five-day shutdown of parts of its economy in a bid to slow the spread of swine flu.Source: BBC News | Business | World Edition | 1 May 2009 | 8:21 am Nationwide House Price Index: Actually prices went upWhy do mortgage lenders doctor their figures when they publish house price indices asks leading commentator Ray Boulger.Source: Telegraph Finance | 1 May 2009 | 8:20 am John Lewis sales boosted by surge at WaitroseJohn Lewis, the upmarket department store group, recorded a 1.9 per cent increase in sales last week, thanks to booming food sales at its Waitrose supermarkets. Source: Latest Business News from Times Online | 1 May 2009 | 8:17 am Informa snubs 'double tax' with Swiss moveInforma, the professional publisher behind Lloyd's List, is to tap shareholders for £242 million to ensure that the company burdened with £1.3 billion of debt does not risk breaching the terms attached to its borrowings. Source: Latest Business News from Times Online | 1 May 2009 | 8:15 am Citi sells Japanese brokerage for $7.9 billionSource: Business and financial news - CNNMoney.com | 1 May 2009 | 8:06 am More optimism on economy despite Chrysler bankruptcyDETROIT (Reuters) - U.S. automaker Chrysler has filed for bankruptcy and entered an industry-changing deal with Italy's Fiat , in the latest big government intervention in the economy to try to deal with the global crisis.Source: Reuters: Business News | 1 May 2009 | 8:02 am Nikkei jumps 1.7%, Asian markets end mixedHONG KONG (MarketWatch) -- Asian markets ended mixed Friday as cautious investors looked to the outcome of the stress tests on U.S. banks in the coming week, but Japanese shares rose as exporters jumped on a weakened yen.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 8:02 am Media Digest 5/1/2009 Reuters, WSJ, NYTimes, FT, BloombergAccording to Reuters, lenders will object to the Chrysler Chapter 11 filing. Reuters reports that Switzerland is asking US a court to halt a case against UBS (UBS). Reuters reports that SMFG will buy Citiroup’s (C) Japan units for over $5.6 billion. Reuters writes that Cuomo said that pension kickbacks are a national problem. Reuters reports that Freddie Mac (FRE) paid [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 8:00 am StephanomicsWhat is the potential economic impact of swine flu?Source: BBC News | Business | World Edition | 1 May 2009 | 8:00 am China to buy controlling stake in Australian minerChina adds to its shopping cart of Australian mining assets Friday, with China Nonferrous Metal Mining Co. set to pay A$252 million ($184.2 million) for a majority stake in rare-earth mineral miner Lynas Corp., a producer of special materials found in products ranging from fluorescent light bulbs to flat-screen televisions and hybrid cars.
Source: MarketWatch.com - Top Stories | 1 May 2009 | 7:47 am Australian stocks: Market closes marginally lowerMELBOURNE - The Australian sharemarket closed marginally lower after muted trading as investors await economic news due from the United States next week. At the 1615 AEST close on Friday, the benchmark S&P/ASX200 had fallen 10.9...Source: New Zealand Herald - Business | 1 May 2009 | 7:26 am Asia Markets And Europe OpenMarkets in Asia were mostly higher with China markets closed for a holiday The Nikkei rose 1.9% to 8,977. At the open in Europe, the FTSE was down .9%. Data from Reuters and MarketWatch. Douglas A. McIntyre[[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 1 May 2009 | 7:23 am Nikko sale to ease Citi stress test demandsCitigroup's strained balance sheet is set to receive a $2.5bn boost from the imminent sale of its Japanese brokerage Nikko Cordial, in a move that could strengthen Citi's hand in talks with the US government...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:21 am Pearson revenue tops £1bn despite ad declinePearson, the financial and educational publisher, unveiled a 1 per cent improvement in revenue for the first quarter of 2009, despite faltering advertising at its flagship title, the Financial Times. Source: Latest Business News from Times Online | 1 May 2009 | 7:04 am Migrants returnBrazilian migrants in Japan struggling to make a livingSource: BBC News | Business | World Edition | 1 May 2009 | 7:01 am Fiat's most popular models in EuropeOne of the rationales for the Fiat alliance with Chrysler is that the American company could benefit from a line of cars with "Italian style," Fiat Chief Executive Sergio Marchionne said in a recent interview...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am The taste of dog food? It's harder than you think to identifyResearchers gave 18 volunteers five food samples to try in a blind taste test -- and only three were able to identify the canine fodder, according to a paper by the American Assn. of Wine Economists.Pâté or dog food? Either could be yummy.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Wax celebrities go on the auction blockA Hollywood museum is selling more than 200 hand-sculpted figures in a look-alike shake-up. The life-size replicas made of oil-painted wax are expected to fetch about $3,000 each. ...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am Chrysler's bankruptcy path is uncharted, but GM could followObama calls his decision to push a Chapter 11 filing on the automaker unfortunate but necessary. The move sends a sharp message to General Motors and its stakeholders as their deadline looms.Reporting from Los Angeles and Washington Martin Zimmerman -- President Obama's decision to save Chrysler by pushing it into bankruptcy Thursday puts the major U.S. automaker in risky, uncharted territory and could portend a similar outcome for General Motors Corp. as it races to meet its own government restructuring deadline.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Mortgage reduction bill fails in SenateBanks lobbied heavily against the measure to help homeowners facing foreclosure.The financial services industry is in trouble over its role in crashing the world economy, but that doesn't mean its lobbyists have lost all their muscle on Capitol Hill.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am SEC sues consulting firm for Los Angeles pension agencyThe lawsuit and the arrest of a partner in the firm are part of a widening kickback scandal. Reporting from Sacramento,...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am 'X-Men Origins: Wolverine' kicks off high-stakes summer movie seasonHollywood has five potential blockbusters, all of which are sequels or spin-offs budgeted at well over $100 million, set to open by Memorial Day weekend.The movie industry kicks off its lucrative and high-stakes summer season today with Fox's "X-Men Origins: Wolverine" in the leadoff position.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Fiat's most popular models in EuropeOne of the rationales for the Fiat alliance with Chrysler is that the American company could benefit from a line of cars with "Italian style," Fiat Chief Executive Sergio Marchionne said in a recent interview. "Small, drivable, cheap and ecologically sustainable cars." Hard to imagine? Here's a look at three of Fiat's most popular models in Europe. -- Dan Neil
Source: L.A. Times - Business | 1 May 2009 | 7:00 am SEC sues consulting firm for Los Angeles pension agencyThe lawsuit and the arrest of a partner in the firm are part of a widening kickback scandal.Reporting from Sacramento, Los Angeles and New York -- A multimillion-dollar pension-kickback scandal widened further Thursday as a consulting firm for a Los Angeles city retirement fund was sued by federal regulators and one of its partners was arrested on criminal charges.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am In Chrysler bankruptcy, carmakers may be following airlines' pathThe experience of the air carriers suggests Chrysler's filing could be an opportunity for it to outmaneuver its rivals.The major players in a key industry file for bankruptcy protection with the hope of reshaping operations quickly and coming back to compete more strongly.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Many Chrysler dealers see silver lining in automaker's bankruptcyFiling for Chapter 11 will allow the company to better position itself for future growth, they believe. The deal with Italian automaker Fiat is viewed as another ray of hope for a stable future. ...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am Employers of illegal workers to be targeted by U.S.The Homeland Security Department issues guidelines for work sites that depart from the Bush-era focus on illegal workers. ...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am Exxon Mobil profit drops 58% as global recession saps energy demandThe oil company's first-quarter net income falls to $4.55 billion from $10.9 billion a year earlier.Exxon Mobil Corp. posted its lowest profit in more than five years Thursday after the global recession sapped energy demand, pulling down oil and gasoline prices.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Exxon Mobil profit drops 58% as global recession saps energy demandThe oil company's first-quarter net income falls to $4.55 billion from $10.9 billion a year earlier. Exxon Mobil...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am Employers of illegal workers to be targeted by U.S.The Homeland Security Department issues guidelines for work sites that depart from the Bush-era focus on illegal workers.In a major departure from the Bush administration, the Department of Homeland Security on Thursday issued new work site enforcement guidelines that shift the focus to employers rather than illegal workers and could be a harbinger of more immigration reforms.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Experian loses ruling that could strengthen Fair Credit Reporting ActThe U.S. 9th Circuit Court of Appeals rules in favor of a woman who had been pursued by a collection agency that used an Experian credit report to try to recover a towing fee owed by her son. ...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am Many Chrysler dealers see silver lining in automaker's bankruptcyFiling for Chapter 11 will allow the company to better position itself for future growth, they believe. The deal with Italian automaker Fiat is viewed as another ray of hope for a stable future.Chrysler dealers have been through the wringer before, and although Chrysler's bankruptcy on Thursday has many worried about a sales slide, most are staying optimistic.
Source: L.A. Times - Business | 1 May 2009 | 7:00 am Mortgage reduction bill fails in SenateBanks lobbied heavily against the measure to help homeowners facing foreclosure. The financial services industry...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am The taste of dog food? It's harder than you think to identifyResearchers gave 18 volunteers five food samples to try in a blind taste test -- and only three were able to identify the canine fodder, according to a paper by the American Assn. of Wine Economists. ...Source: RSS feed - channel BNPaperBusiness | 1 May 2009 | 7:00 am Rebel Chrysler debtholders to fight bankruptcy saleA group of about 20 lenders that balked at the terms of a governmentbrokered deal to cut Chrysler 6.9bn £4.7bn debt are now planning to object to the company's planned bankruptcy sale their attorney said.Source: Telegraph Finance | 1 May 2009 | 6:56 am Macquarie bank profit falls 52%Australia's biggest investment bank, Macquarie Group, posts its first annual profits fall in 17 years.Source: BBC News | Business | World Edition | 1 May 2009 | 6:54 am Rentokil profits continue to fallThe pest control and business services group Rentokil Initial reports a 40% fall in pre-tax profits in the first three months of the year.Source: BBC News | Business | World Edition | 1 May 2009 | 6:51 am Informa to raise £242m in rights issueBritish business publishing and exhibitions group Informa has unveiled a twoforfive rights issue to raise about £242m in order to reduce its debt.Source: Telegraph Finance | 1 May 2009 | 6:47 am Chrysler: details of the bankruptcy planThe Obama administration summarised its plan for Chrysler's Chapter 11 bankruptcy and Chrysler's alliance with Fiat as follows:Source: Telegraph Finance | 1 May 2009 | 6:29 am Japan moves back into deflationNew figures show prices have fallen in Japan during March, as the jobless total rises to a four year high.Source: BBC News | Business | World Edition | 1 May 2009 | 6:20 am NZ stocks: Market closes lower on quiet dayThe New Zealand share market snapped a five-day run of rises to close lower in quiet trading today. The benchmark NZSX-50 index closed down 20.668 points, or 0.754 per cent, at 2719.917 after initially opening slightly higher. Turnover...Source: New Zealand Herald - Business | 1 May 2009 | 6:15 am Currency: NZ dollar little changedThe New Zealand dollar was little changed today in the wake of the Reserve Bank's signal that low interest rates are here for some time. The dollar was at US56.55c at 5pm, unchanged from yesterday. The Reserve Bank yesterday...Source: New Zealand Herald - Business | 1 May 2009 | 5:28 am SEC considering change to CEO pay disclosure rules (AP)AP - The Securities and Exchange Commission is considering changing a formula that critics say often allows public companies to low-ball in regulatory filings just how much top executives are paid.Source: Yahoo! News: Stock Markets News | 1 May 2009 | 4:24 am New house listings plunge 34pc in AprilNew house listings fell 34 per cent in April, but asking prices have remained stable says research from real estate website realestate.co.nz. It says the total number of new listings last month was 10,453, a fall of 21 per cent...Source: New Zealand Herald - Business | 1 May 2009 | 4:00 am Allen Stanford Tries To Prove Innocence By Showing Us He's InsaneR. Allen Stanford gave himself up to prove he hasn't given up. Stanford 'surrenders' to feds who didn't want him [Houston Chronicle] Earlier: Sir Stanford: "You're F'ing Right I'm Gonna Fight"
Source: Dealbreaker | 1 May 2009 | 4:00 am The Private School PinchNote to parents who've always thought of private schools as a closed, clubby bastion of the silver-spoon set: There may never be a better time to storm the castle walls. From coast to coast, many of the nation's 27,000 independent primary and secondary schools are scrambling to fill spots left by recession-struck families. To ease the admissions process, some are waiving fees and extending deadlines. Others are even lowering the bar, taking kids with lower test scores. With the economy still roiling, many schools are working to fend off further departures by freezing or discounting tuition. And while you won't hear them announcing it over the intercom anytime soon, they're also more willing to negotiate -- in some cases, allowing cash-strapped parents to literally barter services in exchange for a tuition break. How can schools afford these moves? Most say they're working to fill tuition shortfalls, not to mention their shrinking endowment coffers, by clamping down on administrative costs, postponing construction projects and throwing more fund-raisers. And to be sure, not all schools are having to dig too deeply into their waiting lists to reel in replacement revenue. "It is still extremely difficult to be admitted to choice programs," says Steven Roy Goodman, a Washington, D.C.based educational consultant. Indeed, private-school officials say they can't gauge what toll the recession has taken, since enrollment figures for September usually don't shake out until early summer. But many are seeing worrisome signs, such as lower attendance at open houses and smaller numbers of actual applicants. And that's on top of a demographic dip in school-age children in many areas of the country. So it's no wonder this $25 billion industry is bracing for a downward jolt: The National Association of Independent Schools recently warned its members to create not only a financial "contingency" plan but also a "disaster scenario" plan -- the latter if income plummets by more than 20 percent. All of which, ironically, spells more opportunity for education-conscious families: "This is the best time for the consumer," says Dennis Guilliams, head of the Chesterfield Day School in St. Louis, Mo. Gayle White won't argue. Last fall, when she saw that her daughter was not getting what she needed at her big, impersonal high school, the Springfield, Mass., CPA set her sights on transferring her to a highly regarded boarding school nearby. Not that she was holding her breath. For one thing, it was already November, well into the academic year. For another, the MacDuffie School wasn't exactly an easy "in." The exclusive, 119-year-old college-preparatory school, with its small classes, international mix of students and bucolic New England campus, hadn't had a single open spot in its 10th-grade class in three years. But MacDuffie's enrollment had slid more than 10 percent from its peak of 235 just a year before. And to the Whites' surprise, within about a week of applying, their daughter Taylor was accepted. One factor that helped her nab the coveted spot? Another family had recently withdrawn -- "for financial reasons," says Kathryn Gibson, MacDuffie's head of school. For middle-class parents traditionally scared off at the schoolhouse door by nosebleed tuition costs, the new welcome-mat moves can be a little jarring. After all, in recent decades, getting your kid access to those smaller classes, more rigorous academics and country clublike campuses usually meant enduring some serious sticker shock -- and hefty annual bumps. Sending a child to board at Phillips Exeter Academy, with its more than 450 courses and Washington, D.C., internship program, will set you back close to $38,000 this year -- up 67 percent from a decade earlier. Even the midpriced privates have seen swelling fees. At the Charles Wright Academy, a day school in Tacoma, Wash., tuition this fall will run, on average, $18,065 per year, 76 percent higher than a decade ago. According to Pat Bassett, president of the independent schools association, private-school tuition has outpaced inflation by an average of three points every year for the past 25 years. Of course, having the privilege of complaining about tuition assumes that your child has gotten past private school's ultimate velvet rope: the waiting list. According to the association, over the past five years, only about 35 percent of applicants actually enroll. In the most competitive schools in hot markets like New York, Washington and Los Angeles, the ratio of applicants to open seats is generally more like 10 to 1, says consultant Goodman. But look around the country these days and you'll see that admissions math is in flux. In St. Louis, Chesterfield's Guilliams says the "perfect storm" of demographics and the economy has many private schools in his area looking at "survivability." His school has lost 25 percent of its student body since 2002, and around the city, he says, "there are a lot of empty seats." In Hawaii, an independent-school mecca where nearly 20 percent of students traditionally take the private route, enrollment has receded for the first time in 10 years. And in places like Greenwich, Conn., and Rockville, Md., public-school districts are reporting a sudden uptick in students transferring in from the privates. This isn't news to Andrew Goldberger, CEO of Smart Tuition, which oversees billing for some 200,000 families at more than 2,000 U.S. private schools. He reports seeing it all: falling enrollment, midyear withdrawals (at double the rate of a year ago), plus bounced checks and late payments (at a 20-year high). "I wish I could say the worst is behind us," says Goldberger. Of course, you won't find many private-school parents complaining. The relief in Karla Caban Yamamoto's voice is palpable when she describes how the tiny St. Francis School in Honolulu just announced a freeze of the $7,300 tuition she pays. The impact, says the small-business owner, is huge: It allows her 12-year-old daughter to stay at a school "that challenges her." And it keeps her husband from having to add extra hours -- at his second job -- to help cover not just the tuition but also essentials like textbooks and uniforms. Recession specials have also been cropping up at schools around the country, with tuition discounts reported as high as 20 percent. (Springfield's MacDuffie School, for one, recently rolled back sixth-grade tuition by a hefty $4,000.) And even if they aren't trumpeting official discounts, most schools are tap dancing as fast as they can to help retain financially strapped families. Lost a job? Some schools are instituting a sliding-scale tuition based on family income, while others are offering flexible, interest-free payment plans. Did grandma's help-with-tuition funds evaporate in the market meltdown? That's okay; some places now take IOUs. For the first time in at least 42 years, Saint Patrick High School in Chicago has begun accepting promissory notes so children could begin a new school year -- even if their parents still owe from the last one. Currently, 17 families have taken it up on the deal. And while you won't see "bartering" listed in any of its official financial-aid literature, the Westover School in Middlebury, Conn., has allowed a couple of folks to do just that. According to the school's head, Ann Pollina, several parents at the all-girls college prep have traded their professional services -- as technology and business-efficiency consultants -- for a little tuition relief. Naturally, it's not exactly a precedent the school wants set too publicly. (The services, Pollina points out, were accepted specifically because they helped the school trim administrative costs.) How much got knocked off those families' tuition bills? That, she says, is an "individual conversation." In the past, of course, it's been the parents who have had to go to great lengths to get their children into the more elite schools. But since the economy went south, the game has changed; now it's the schools that are having to hustle -- and maybe even lower their standards. Instead of waiting for the applications to roll in, more are forced to actively beat the bushes, consultants say, to fill spots that have opened midyear. Even in the most competitive markets, there's talk of more "brokering" going on. That's where primary-school principals are reaching out to preschool directors to see how interested parents are in sending their kids to a particular private school, says Emily Glickman, president of the New Yorkbased Abacus Guide Educational Consulting. Some schools are easing the admissions process by waiving application fees, accepting submissions after the published deadline or notching down test-score requirements. The Kadima Hebrew Academy, in West Hills, Calif., has taken an even bigger step: eliminating one of its academic hurdles altogether. When next year's prospective students apply, they will no longer need to take the Independent School Entrance Exam. "It's just one more fee," says Michelle Starkman, codirector of admissions. "There's a cost associated with standardized tests." Of course, in this market, a family's ability to pay in cash may trump the academic requirements altogether. Indeed, while many schools offer financial aid, Claire Law, a certified educational planner from Charleston, S.C., says "the full-paying student has the upper hand." Not all private schools expect the sky to fall this year. Officials at some of the most selective institutions say applications have actually risen as funding has dropped for nearby public schools. "Budget cuts inspired many families to consider [us] who might not otherwise," says Jane Fried, dean of admission at Phillips Academy in Andover, Mass. While many schools are expected to pad their waiting lists this year -- hedging their bets in case fewer families can commit by the time tuition deposits come due -- some are more sanguine. Elite schools say they're more insulated from sharp economic downturns because they attract an international mix of students. "Our market is just that much bigger," says Jim Hamilton, admissions director at St. George's School, a coed boarding school in Newport, R.I. And even if demand does fall slightly at some of the country's top schools, one veteran admissions consultant says that still means about seven (instead of 10) applicants will be competing for the same spot. Sam Jones, for one, has welcomed the new odds. The chief executive of a new-media company submitted five applications this winter to try to get his 4-year-old son into a private day school in Santa Monica, Calif. And where other parents faced financial challenges, he saw "opportunities." He was encouraged by rumors (whispered by other parents and school officials) that demand had softened as more families relocated for better job prospects or considered transferring into public schools. Indeed, a number of his top choices recently got back to him with good news: His son, Samuel, had been accepted. Now, he says, comes the hefty deposit. 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 | 1 May 2009 | 4:00 am Futures Rise Ahead of Economic Data (Market Update)News at a Glance
The LowdownWall Street hoped to cap a volatile week with some gains. Stocks looked to open higher Friday, as traders welcomed signs that the spread of the swine flu could be slowing and awaited key updates on the manufacturing sector. The threat of a global pandemic faded somewhat after Mexican health officials said the number of new cases of swine flu in the country had fallen substantially over the last week. Mexico admited 46 patients with swine flu yesterday, down from 212 on April 20. Whether the early enthusiasm persists will hinge, at least in part, on the release of some new economic data. The March report on factory orders and the April reading of the ISM Index are due out later this morning. In Washington, Supreme Court Justice David Souter plans to retire, Reuters reported, citing an anonymous source. Souter's departure presents President Obama with an opportunity to select On the Nymex, oil prices retreated before the open. By 6:21 a.m., crude traded down 51 cents at $50.61 a barrel. World markets were mostly higher. In Asia, Japan's Nikkei rose 1.7%, while Hong Kong's Hang Seng picked up 3.8%. In Europe, the U.K.'s FTSE was flat in midday trading. Corporate News
The Economy
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Source: SmartMoney.com | 1 May 2009 | 4:00 am 5 Vacation Rental Spots Offering Steep Summer Savings (Deal of the Day)Renting a beachfront condo or a lakeside cabin this summer won't be half the splurge (or half as difficult to book) as it was last year with more would-be vacationers opting to stay home in order to save money. In fact, some rentals in popular vacation spots like Myrtle Beach, Orlando and the Poconos are going for as much as 60% less than they did last summer, according to vacation rental sites. The popular Whelk Resort San Diego in Escondido, Calif., for example, recently cut rates on its rental villas in half from May through September, bringing the price of a one-bedroom unit at the coastal resort to $135 a night. Quite simply there are too many vacation homes and not enough vacationers, explains Bob Barnes, CEO of Zonder.com, a vacation rental marketplace. Not only are consumers trimming their travel budgets, but some vacation home owners who didn't rent their properties before are doing so now in order to raise some extra cash. Add to that all of the new resorts built during the housing boom and the market is flooded with excess inventory, he says. The growing competition for vacationers' dollars has forced property owners to slash prices and even offer add-on perks such as free tickets to local attractions, sailings on catamarans or free rounds of golf to sweeten the deal. Vacation rental prices were down 8.5% nationwide during the fourth quarter of 2008, with some markets plunging an average of 20%, according to Hotels.com, whose specialty lodging division tracks vacation rentals, private homes, villas and bed and breakfasts. To dig up some of the best deals out there, SmartMoney.com spoke with property managers, real estate agents and executives at web sites that list vacation rentals, asking them for some of their best sales and discounts on vacation home sales. Here are five spots where summer rental bargains abound: 1) Costa Rica: Your Own Private Rainforest for Half the PriceSummer is shoulder-season for Costa Rica, meaning brief afternoon showers most days. But the bulk of the deals stem from a resort boom that has outstripped tourism demand, says Michael Brown of Mead Brown Costa Rica Vacation Rentals, which manages luxury rental properties. Deals on airfare are good, too -- roughly $350 instead of last year’s $600, he says -- thanks to new routes from budget airlines such as Spirit and JetBlue. Sample deal: Through November, Mead Brown is offering one-bedroom rentals at the Los Sueños Resort and Marina for $175 a night, down from $350 last year. There’s also a deal to pay for six nights and get the seventh free. A family booking a weeklong vacation at the resort, which has its own private rainforest preserve and views of the Pacific Ocean, would pay $1,050 -- a savings of 57%.
2) The Poconos: Lake or Mountain View? Take Your PickOnly about 30% of homes in this popular Pennsylvania resort area belong to full-time residents, says Larry Ditty, a realtor and owner of Century 21 Select Group, which operates 14 offices throughout the region. “The renters aren’t flooding in like they used to,” he says. “The people who are still coming are the same people who have been coming up for years.” Coupled with the large number of lake and mountainside resorts built during the recent boom, availability is the highest it’s been in years, says Ryan Bailey, president of vacation-rental site ResortsandLodges.com. Sample deal: Book the Woodloch Pines Resort’s Stars & Stripes Midweek Package from July 6-11, and pay $3,500 for accommodations for a family of four in one of the privately-owned guest homes on the golf course. That’s down from prices that reached $7,500 to $8,000 during peak weeks last summer, says Bailey. You’ll save up to 56%.
3) Orlando, Fla.: Save Your Cash for Admission TicketsFamilies looking to visit the theme parks this summer will have more cash to put toward those pricey park admission tickets. Florida is one of the markets where vacation rental prices have plummeted the most over the past year, says Steve Dumaine, vice president of specialty lodging for Hotels.com. Prices are down by almost 20% or more across the board, thanks to a glut of new resort communities and condos. Sample deal: Beachtree Villas -- just four miles from the Disney parks -- cut its prices by 40% for May through September. That pushes prices for a two-bedroom villa from $158 per night down to $95.
4) Rocky Mountain National Park, Colo.: Hiking, Biking and Cheap RentalsThe number of available rental properties near Rocky Mountain National Park has skyrocketed by 139% over the past year, according to rental site HomeAway.com. That leaves plenty of open properties for travelers who want to enjoy summer hiking, rafting and biking. Sample deal: Owners of a four-bedroom lodge in Estes Park have knocked $600 off their usual weekly rate of $2,595, bringing the price down to $1,995 a week through September. A 23% savings.
5) Hilton Head, S.C.: Less Crowded Beaches for a Fraction of the PriceThe island’s 12 mile-coastline drew 2.5 million vacationers last year. Yet, despite the area’s perennial popularity, there are still plenty of properties available during prime summer months, says Barnes. In past years, most inventory would be gone by now, says Fred Schmitz, owner of Avalon Rentals, a management company for 21 properties on the island. “We’ve reduced our rates back to 2006 levels because of the economy,” he says. “So have a lot of others.” Sample deal: Owners of a two-bedroom condo that sleeps eight people in the luxury oceanfront Villamare resort complex are asking $250 a night -- the same rate they requested last year, according to Zonder.com. However, vacationers can snag a 20% discount when they book one to 14 days in advance, or 15% when they book 15 to 30 days in advance.
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Source: SmartMoney.com | 1 May 2009 | 4:00 am The Case for Taking Profits (Broker Talk)The market's strong run off its early March lows behoove investors to harvest some profits and take a more cyclical stance when it comes to sector allocation, our brokerage experts say. Who's Talking: Jeffrey Saut, chief investment strategist, Raymond James The Gist: The market's continuing strength has Saut taking a more cautious stance, if only because the "buying stampede" can’t last forever. But that doesn't mean investors need fear a return plunge anytime soon. For one thing, Saut can find no instances when the equity markets have retreated and broken below a major low like the one notched intraday on March 6 in only six to eight weeks. Secondly, we have already seen the worst. “If it gets any worse than it was at the November 2008 ‘lows,’ and the subsequent March 2009 ‘undercut lows,’ they might as well close the NYSE and I’ll retire," Saut writes. (Read the full commentary on Raymond James's site here.) "Consequently, while we are cautious in the short term, we think the current rally phase has 'legs' and will likely, after some kind of near-term peak and subsequent correction, reassert itself and travel higher," adds Saut. In the meantime, if you were smart enough -- or lucky enough -- to participate in the bear-market rally, Saut recommends harvesting some profits ahead of the next correction. Who's Talking: Brad Sorensen, director, sector analysis, Schwab Center for Financial Research The Gist: Market action during the past month has illustrated again how important it can be for investors seeking opportunities to boost returns to pay attention to their sector allocations. As the market begins to look more toward a second-half recovery, early cycle stocks will help investors be made whole sooner. With the economic data starting to suggest that the worst is behind us, it's time to tweak the weightings in our portfolios to a more cyclical stance. That means the classic early cycle sectors of technology and consumer discretionary are poised to outperform the overall market in the near term. "This is by no means a sign that all is well with the consumer, because it certainly isn't, but the stock market is a forward-looking mechanism and it appears that there may be some light at the end of the tunnel," Sorensen said, upgrading consumer discretionary to Outperform from Market Perform. (Read the full report on Schwab's site here.) As for upgrading the tech sector, Sorensen believes that if businesses are going to loosen their extremely tight purse strings for anything, it's likely to be for technological improvements. "These investments are typically attractive because they tend to increase companies' efficiency and productivity at all levels, allowing companies to produce more with fewer workers," he writes. Sorensen sees consumer staples and telecoms as underperforming the broader market in the near term. He weights the remaining six sectors of the S&P 500 at Market Perform. 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 | 1 May 2009 | 4:00 am Epidemics Won't Make Your Portfolio Sick (On the Street)
The pork lobby is calling it H1N1. The Israelis have suggested the slightly more kosher “Mexican Flu.” Whatever you call swine flu, prevention still requires lots of handwashing, handkerchiefs and a total quarantine for anyone spotted buying Tylenol Cold and Flu at CVS. So unless you’re running a fever — or planning a trip to Cancun — there’s little need to panic. And even the markets have shown at least some restraint: Harley Davidson (HOG) is up 12% this week. 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 | 1 May 2009 | 4:00 am Publisher 3Media in liquidationThe liquidator of 3Media Group says the company will trade on until all its assets are sold. 3Media, New Zealand's largest privately owned business-to-business publishing company, was placed in voluntary liquidation today. Liquidator...Source: New Zealand Herald - Business | 1 May 2009 | 3:35 am Macquarie Group profits fall 52pc, worst of the writedowns over, it saysMacquarie Group has posted a 52 per cent fall in annual profit - its first decline in 17 years - and signalled it has probably seen the worst in writedowns due to due global economic downturn. Australia's biggest investment bank...Source: New Zealand Herald - Business | 1 May 2009 | 3:30 am Super Fund invests more in NZ, via new Direct Capital fundThe New Zealand Superannuation Fund is investing $50 million in Direct Capital IV Fund, which will invest in New Zealand companies. NZ Super Fund, which had total assets of $11.6 billion at March 31, will be a cornerstone investor...Source: New Zealand Herald - Business | 1 May 2009 | 3:00 am Chrysler succumbs to bankruptcy after long struggleDetroit - After months of struggling to stay alive on government loans, Chrysler has finally succumbed to bankruptcy, pinning its future on a top-to-bottom reorganisation and plans to build cleaner cars through an alliance with Italian...Source: New Zealand Herald - Business | 1 May 2009 | 2:30 am Independent News warns of default riskDUBLIN - Ireland's major newspaper publisher, Independent News & Media, has warned it is likely to default on a ?200 million ($US265 million) debt due for repayment next month and is seeking a possible bailout from its top two shareholders. The...Source: New Zealand Herald - Business | 1 May 2009 | 2:00 am Switzerland asks U.S. court to halt UBS tax caseMIAMI (Reuters) - Switzerland urged a U.S. court on Thursday to reject demands by U.S. tax authorities for information about U.S. clients of UBS AG, saying disclosure would violate its sovereignty and international law.Source: Reuters: Business News | 1 May 2009 | 1:50 am Freddie Mac pays $700K to former exec's survivors (AP)AP - Freddie Mac is paying out more than $700,000 to the family of David Kellermann, the mortgage finance company's former acting chief financial officer who died last week in an apparent suicide, the company disclosed Thursday.Source: Yahoo! News: Business | 1 May 2009 | 1:48 am Stress Test Results To Be Delayed 'Til Later Next Week Or Possibly NeverWhat would make this all worth it is if we found out that when Citi and Bank of America submitted their rebuttals to the suggestion they need to raise more capital, they purposely told the government things are so much worse than anyone knows and sharing that information with the public would be deadly. The results should be put in the lock box and never let out (if none is on hand, Geithner must eat the documents). Don't think they have the pair or the brains for such a conniving scheme, unfortunately, but if you're reading boys, that was a free one. The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said. Alternative theory: Bernanke, Geithner, etc were starting to get the strange feeling everyone thinks these "tests" are meaningless, and decided something had to be done to up the drama factor. To that end, tomorrow a video of T. Geith opening up the file on, I don't know, Goldman, and shitting his pants will be "leaked" onto YouTube, by user BigSwinginFedChair. Maybe then you people will start to take this thing seriously. U.S. Stress Test Results Delayed as Early Conclusions Debated [Bloomgberg]
Source: Dealbreaker | 1 May 2009 | 1:45 am Hasbro joins Discovery to take on DisneyThe toymaker will invest $300m for a 50% stake in a cable television and online venture with the broadcaster and guarantees a further $125m over five years in merchandising royaltiesSource: Financial Times - US homepage | 1 May 2009 | 1:25 am Freddie Mac pays 2008 bonuses, honors Kellermann'sNEW YORK (Reuters) - Freddie Mac, the U.S. mortgage finance giant, on Thursday said it paid $1.3 million in retention bonuses to three executives in late 2008 and so far this year, including a full payout of the award promised to its acting chief financial officer before his shocking death, according to a Securities and Exchange Commission filing.Source: Reuters: Business News | 1 May 2009 | 12:37 am Freddie Mac pays 2008 bonuses, honors Kellermann's (Reuters)
Source: Yahoo! News: Business | 1 May 2009 | 12:37 am BofA board not planning to oust Lewis: reportNEW YORK (Reuters) - Bank of America Corp's board is not planning to remove Chief Executive Kenneth Lewis after he was ousted as chairman under shareholder pressure, the Wall Street Journal reported on its website on Thursday.Source: Reuters: Business News | 1 May 2009 | 12:21 am Taiwan Rallies On Improved China Ties (Investor's Business Daily)Investor's Business Daily - Taiwan's stock market this week bounded the most in 17 years after the island allowed Chinese institutional investors to buy its stocks for the first time since a civil war ended six decades ago.Source: Yahoo! News: Stock Markets News | 30 Apr 2009 | 11:53 pm Briscoes reports flat sales with tough competitionRetailer Briscoe Group has reported first quarter sales 0.1 per cent lower than a year earlier to $90.2 million. Managing director Rod Duke today said the company was expecting to report a bottom line profit for the half year to...Source: New Zealand Herald - Business | 30 Apr 2009 | 11:30 pm Write-Offs: 04.30.09$$$ Mean Street: Chrysler -- Our Long Nightmare Has Begun [Deal Journal] $$$ D Bank defends chairman over Ackermann [FT] $$$ Portfolio drinks away the pain [Daily Intel]
Source: Dealbreaker | 30 Apr 2009 | 11:11 pm UBS claims naming tax evaders would break lawUBS would be forced to break Swiss criminal law if it gave America's tax authorities the names of potential tax evaders, the Swiss bank warned today. Source: Latest Business News from Times Online | 30 Apr 2009 | 11:01 pm DSG raises £310m for store revival plansDSG International, the owner of Currys and PC World, raised £310.6 million yesterday to shore up its capital base after credit insurance fears contributed to a surprise rise in its net debt. Source: Latest Business News from Times Online | 30 Apr 2009 | 11:01 pm Chrysler bankruptcy to provide 'new lease of life'Chrysler, America’s third-biggest carmaker, went into Chapter 11 bankruptcy protection yesterday, having won $8 billion ($£5.4 billion) in US government funding to help it to restructure. Source: Latest Business News from Times Online | 30 Apr 2009 | 11:01 pm AstraZeneca in US talks over swine flu vaccine as profits leap 40%AstraZeneca is in talks with health authorities in America about developing a vaccine for swine flu. Source: Latest Business News from Times Online | 30 Apr 2009 | 11:00 pm ADB plans $13bn boost to fight crisisRegional bank's shareholders approve a trebling of its capital from $55bn (€42bn, £37bn) to $165bn, though planned capital increase still needs endorsement from national legislatorsSource: Financial Times - US homepage | 30 Apr 2009 | 10:32 pm Madoff Gets A Throne
It's Bernard, thank you. David Kestenbaum/NPR Yesterday the three branches of government faced off against the fourth estate in the annual three mile footrace known as the Capitol Challenge. I didn't see any Treasury or Fed folks. But Walter Lukken, a commissioner at the Commodity Futures Trading Commission ran seven-minute miles, not too shabby. Come on Geithner! Bernanke! Let's see what you've got! The other portable toilets were labeled "Yes You Can," "House," "Senate," "Executive Branch," Print Media (with job security)," "Print Media (without job security)," "Complaints" and "Tax Counseling while you wait." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Apr 2009 | 10:07 pm P&G forecasts 'buyer's market' in advertisingProcter & Gamble, the world's largest advertiser, expects car companies and banks to scale back marketing spendingSource: Financial Times - US homepage | 30 Apr 2009 | 9:46 pm On Again Off AgainWith all the talk of buying American lately, and with Obama taking the opportunity with the cameras to give Chrysler a bit of free endorsement work (Chrysler, we hope you file that on your taxes)... So these are some of the steps that we're taking to make it easier for Americans to buy a car. If you are considering buying a car, I hope it will be an American car. I want to remind you that if you decide to buy a Chrysler, your warrantee will be safe -- because it is backed by the United States government. And to further boost demand for autos, we are working to accelerate the purchase of a federal fleet, and we're also working with Congress on fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars. ...we thought we would revisit the Administration's driving habits. Of course, one fact missing from our old exploration on the topic was that Obama traded in his Chrysler 300C for a Ford Escape Hybrid in 2007 after putting a mere 20,000 miles on the Chrysler. Odd, Chrysler wasn't good enough to hang on to back then. What's changed? Who drives what, after the jump.
Source: Dealbreaker | 30 Apr 2009 | 9:46 pm Monster Worldwide CEO's compensation fell in 2008 (AP)AP - Sal Iannuzzi, the chief executive of Monster Worldwide Inc., received compensation in 2008 valued at $8.2 million a 37 percent decline from the year before according to an Associated Press analysis of a Wednesday SEC filing.Source: Yahoo! News: Stock Markets News | 30 Apr 2009 | 9:44 pm Capitalist Pig Flu?The folks here at NPR have been mapping the reported swine flu cases. The cases seem to be concentrated in high GDP countries. Is this some virus that prefers rich people? The U.S., Canada, Germany, the UK? Why none in Guatemala, right over the border from Mexico? The likely answer: The virus doesn't prefer capitalists. People with money are just better equipped to track it. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Apr 2009 | 9:43 pm Presented By:Source: Dealbreaker | 30 Apr 2009 | 9:35 pm WSJ: Citadel To Try I-Banking On For SizeCitadel Investment Group is preparing to expand into investment banking as the Chicago-based hedge fund tries to rebound from last year's massive losses. |
