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Opening Bell: 05.14.09Paulson Told Banks He Would Expose Them (Bloomberg) "If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance," Paulson's one-page list of talking points for the session with the banks' chief executives said. "We don't believe it is tenable to opt out because doing so would leave you vulnerable and exposed."" More info at Judicial Watch, which obtained records of the scare tactics. Dress Codes: When No One Wants To Look Like A Banker (NYT) The new look is still professional enough for work, even a business lunch. But it is quirky and cool enough to suggest that you haven't spent the last decade lounging in the old boys' room inhaling cigar smoke and default swaps. Global Banks Sue MBIA (FT) The suit, which includes Barclays and HSBC of the UK as well as European banks, is the second legal challenge to MBIA's restructuring since the bond insurer in February received regulatory approval to split into two: a "good bank" business responsible for guarantees of municipal bonds and a "bad bank" that had insured structured bonds backed by mortgages and other assets." Lehman Considers Spinoff Of Remnants (WSJ) 
Related: Bank of America - JPMorgan Chase - Municipal bond - Business - Insurance Source: Dealbreaker | 14 May 2009 | 1:15 pm Wall Street set for mostly lower open (AP)
Source: Yahoo! News: Stock Markets News | 14 May 2009 | 12:43 pm More Weekly Data Pointing To Double Digit UnemploymentThe Labor Department has released its weekly jobless claims. It seems that the contraction in weekly claims is not running in a straight line. This week’s report came in at 637,000 from a revised figure the week before of 605,000 (from 601,000). Bloomberg had consensus estimates from economists pegged at 609,000 from an unrevised 601,000 [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 12:38 pm The Ratings Game: Asset manager outlook improves, worries remainNEW YORK (MarketWatch) -- The recent improvement in the markets has been good news for asset managers buffeted by the downturn, but in the view of analysts it's still too soon to be optimistic.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 12:31 pm Currencies: Dollar mostly higher ahead of jobless claimsCHICAGO (MarketWatch) -- The U.S. dollar held small gains over most rivals Thursday ahead of the release of weekly initial U.S. jobless claims.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 12:29 pm Wal-Mart's profits and sales flatWal-Mart announces flat profits and sales for the first three months of this year.Source: BBC News | Business | World Edition | 14 May 2009 | 12:24 pm Host Of Companies Win In Strong DigitalGlobe IPO (DGI, MS, OZM, ORB, GEOY)DigitalGlobe is set to open for trading this morning in another highly anticipated initial public offering. The satellite imagery company will trade on the NYSE with the ticker “DGI.” The IPO was priced at $19.00 for some 14.7 million shares. Morgan Stanley (NYSE: MS), Och-Ziff Capital Management (NYSE: OZM), Orbital Sciences Corporation (NYSE: ORB) are [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 12:23 pm Wal-Mart earnings meet expectationsWal-Mart reported flat first quarter earnings and a slight drop in revenue at its US stores but international sales fell sharply due to the strength of the dollarSource: Financial Times - US homepage | 14 May 2009 | 12:15 pm High costs hit SABMiller's profitBrewing giant SABMiller reports a 9% fall in profits, despite putting up the prices of its beers.Source: BBC News | Business | World Edition | 14 May 2009 | 12:13 pm MarketWatch First Take: Brewer SABMiller's glass is half fullSABMiller results suggest another tough year ahead. And the brewer can't necessarily count on the newly unemployed quaffing more suds to take the edge off their perdicament.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 12:13 pm S&P futures pare losses, nearly turn flat (Reuters)
Source: Yahoo! News: Business | 14 May 2009 | 12:12 pm S&P futures pare losses, nearly turn flat (Reuters)
Source: Yahoo! News: Stock Markets News | 14 May 2009 | 12:12 pm S&P futures pare losses, nearly turn flatNEW YORK (Reuters) - S&P 500 stock index futures pared losses and turned nearly flat on Thursday ahead of key producer price and jobless data and after Wal-Mart Stores Inc reported quarterly earnings in line with estimates.Source: Reuters: Business News | 14 May 2009 | 12:12 pm Short Sales, and the Uptick Rule RevisitedBy John Tamny of RealClearMarkets While the recent rebound in share prices has perhaps reduced some of the more strident calls for its reinstatement, the abolishment of the uptick rule in 2007 is to many, part of the reason that stocks have struggled so much over the past year. Supposedly the alleged piling on among short [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 12:07 pm Medarex Positive Data in Rheumatoid Arthritis Trial (MEDX)Medarex, Inc. (NASDAQ: MEDX) announced that its wholly owned MDX-1100 met its primary endpoints for patients receiving methotrexate in a Phase II ‘proof of concept’ trial in patients with active rheumatoid arthritis. The trial indicated that three-times the number of patients treated with 10 mg/kg of MDX-1100 every two weeks achieved at least a 20% [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 12:05 pm Census: Minorities are 34% of U.S.The nation is becoming even more diverse: More than one third of its population belongs to a minority group, and Hispanics are the fastest-growing segment.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 12:00 pm Wal-Mart reports $3.02 billion net income (AFP)
Source: Yahoo! News: Business | 14 May 2009 | 12:00 pm UK signs up to Eurofighter contractThe UK has committed to buying the third tranche of Eurofighter Typhoon jets ending doubts that it would try to get out of the programme to save money.Source: Telegraph Finance | 14 May 2009 | 11:59 am Oil falls as demand 'set to drop'The price of oil drops below $57 a barrel after the International Energy Agency says world oil demand will fall this year.Source: BBC News | Business | World Edition | 14 May 2009 | 11:56 am Kohl's profit beats as sales up, raises year viewNEW YORK (Reuters) - Department store operator Kohl's Corp posted a lower quarterly profit that just beat Wall Street's expectations as it managed to show a slight increase in sales.Source: Reuters: Business News | 14 May 2009 | 11:55 am VW, Kia rev up in the South while Detroit idlesVolkswagen AG executives celebrate raising the first walls of their $1 billion assembly plant Thursday in Chattanooga, Tenn., giving them a chance to smile amid the auto industry's global...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:53 am London Markets: U.K. stocks edge lower as consumer doubts weighU.K. stocks veer between gains and losses on Thursday, with investors getting back into financials and out of energy-related plays after a week of declines.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 11:53 am Wal-Mart profit flat; dollar offsets value gainsRetail giant Wal-Mart Stores Inc. on Thursday said that its first-quarter profit was flat after its value-focused strategy to win it old and new budget-conscious shoppers was offset by a stronger dollar that hurt translated overseas sales.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 11:49 am Wal-Mart profit ticks up, but sales slipWal-Mart Stores, the world's largest retailer, reported first-quarter earnings Thursday that met analyst expectations, although sales declined from a year earlier.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 11:48 am Child trust funds: cash has beaten Government's preferred stakeholders by 34pc since launchChild trust fund vouchers invested in cash accounts have performed nearly 34pc better since their launch than those invested in the Government's preferred stakeholder option research has showed.Source: Telegraph Finance | 14 May 2009 | 11:48 am Royal Mail profit soars as postbag shrinksProfits at Royal Mail doubled to £321 million last year despite a continued fall in the number of letters being posted, in results likely to be seized on by unions attempting to stop Government plans to sell a stake in the group. Source: Latest Business News from Times Online | 14 May 2009 | 11:48 am Wal-Mart posts flat profit for 1st quarterWal-Mart Stores Inc. reported a flat first-quarter profit on Thursday as revenue from its huge international operations was hurt by the stronger dollar. The world's largest retailer...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:47 am Recession buster: $90 custom shirtsHow can you avoid losing your shirt in this market? By paying less for it.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 11:46 am UPDATE 1-Prestige Brands Q4 profit beats estimates by a centMay 14 (Reuters) - Prestige Brands Holdings Inc , the maker of Compound W wart remover, posted quarterly earnings that beat analysts' estimates by a cent, helped in part by a fall in advertising and promotion,...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:45 am Burner Fire Control Equipment Supports US TroopsLAFAYETTE, La., May 14 /PRNewswire/ -- Burner Fire Control, Inc. (Burner), of Lafayette, LA, was recently awarded a contract by the US Army to provide critical firefighting...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:45 am Stocks set to open lowerU.S. stocks were set to open lower Thursday, on the heels of the previous session's heavy losses.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 11:44 am BT to shed a further 15,000 jobsBT says it will cut about 15,000 jobs this year, most in the UK, as the telecoms giant reports an annual loss of £134m.Source: BBC News | Business | World Edition | 14 May 2009 | 11:43 am Treasurys rise on economic jittersTreasurys rose Thursday morning as investors awaited key reports on the job market and inflation.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 11:43 am Dollar mixed on recovery uncertaintyThe dollar fell against the euro and rose versus the yen on Thursday as prospects of a quick economic recovery dampened, dealers said. The European single currency climbed to 1.3609...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:40 am Royal Mail profits almost doubleRoyal Mail sees its annual profits almost double, as all four parts of the business went into the black for the first time in 20 years.Source: BBC News | Business | World Edition | 14 May 2009 | 11:40 am SilverLeaf Financial to Be a Panel Participant in the IMN Forum in New York CitySALT LAKE CITY, May 14 /PRNewswire/ -- It's a bold new world for the Real Estate Funds Industry. What the future holds is undoubtedly on many people's minds. And as...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:40 am UPDATE 1-ProSep posts narrower Q1 loss, seeks to reduce debt* Says discussions may result in swapping debt for equitySource: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:37 am CORRECTED - Fuji Oil to boost asphalt-cracking unit capacityTOKYO, May 14 (Reuters) - Japan's Fuji Oil Ltd plans to boost capacity of its Eureka thermal cracking unit by 6,000 barrels per day to 30,000 bpd by late June during planned maintenance, officials with...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:37 am Wal-Mart posts flat quarterly profitSAN FRANCISCO (Reuters) - Wal-Mart Stores Inc reported a roughly flat quarterly profit on Thursday as its low prices attracted shoppers amid a global economic slowdown, but the retailer's results were limited by a stronger U.S. dollar.Source: Reuters: Business News | 14 May 2009 | 11:34 am Movers & Shakers: Thursday's biggest gaining and declining stocksStocks expected to move significantly in trading on Thursday include the European banks as well as BT, CA, Elbit Systems, Jack in the Box, Sallie Mae, Sony, Starbucks and Wal-Mart.
Source: MarketWatch.com - Top Stories | 14 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 | 14 May 2009 | 11:31 am Natixis, Credit Agricole hit by impairmentsFrench banks Natixis and Credit Agricole both report worse-than-expected first-quarter results after being hit by fresh write-downs and bad-debt charges.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 11:31 am FTI Consulting, Inc. to Present at Eighth Annual JMP Securities Research ConferenceWEST PALM BEACH, Fla., May 14 /PRNewswire-FirstCall/ -- FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhanceSource: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:30 am Visant Corporation Announces 2009 First Quarter ResultsARMONK, N.Y., May 14 /PRNewswire/ -- VISANT CORPORATION today announced its results for the first fiscal quarter ended April 4, 2009, including consolidated net sales of $265.5...Source: RSS feed - channel BNewsBusiness | 14 May 2009 | 11:30 am China says U.S. currency bill tempts protectionismBEIJING (Reuters) - China rejected claims it has manipulated yuan exchange rate policies to tilt trade flows against the United States, saying on Thursday that proposed legislation before the U.S. Congress could stoke protectionism.Source: Reuters: Business News | 14 May 2009 | 11:26 am Wal-Mart posts flat quarterly profit (Reuters)Reuters - Wal-Mart Stores Inc reported a roughly flat quarterly profit on Thursday as its low prices attracted shoppers amid a global economic slowdown, but the retailer's results were limited by a stronger U.S. dollar.Source: Yahoo! News: Business | 14 May 2009 | 11:25 am Top 10 Analyst Upgrades & Downgrades (AZN, BAS, BRNC, BCS, DB, PCS, MYL, PTEN, PDC, WSH)These are the top 10 early bird analyst upgrades and downgrades we have seen in Wall Street research calls early this Thursday morning with over two hours until the market opens: AstraZeneca (AZN) Cut to Underperform at Jefferies. Basic Energy Services (BAS) Cut to Sell at UBS. Bronco Drilling (BRNC) Cut to Sell at UBS. Barclays (BCS) Raised to [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 11:24 am Sony sees second straight loss, eyes frail recoveryTOKYO (Reuters) - Sony Corp forecast a second straight year of losses as the global recession batters demand for consumer electronics but the Japanese company stopped short of taking any new aggressive steps to cut costs further.Source: Reuters: Business News | 14 May 2009 | 11:23 am Sony sees second straight loss, eyes frail recovery (Reuters)
Source: Yahoo! News: Business | 14 May 2009 | 11:23 am Shorter wait for tax freedom dayWorkers in the UK have to work until 14 May to cover all of the tax they must pay in 2009, says a think tank.Source: BBC News | Business | World Edition | 14 May 2009 | 11:22 am Indications: U.S. stock futures hang near the week's lowsU.S. stock futures trade near the week’s lows as concerns about spending still reverberate through markets.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 11:20 am Wal-Mart (WMT) Defies GravityBased on Wal-Mart’s (WMT) earning for the quarter ending April 30, the world’s largest retailer did better than it was supposed to. The company reported EPS of $.77 at the highest end of the range it had set for itself. If it has not been for Wal-Mart’s international business, which carried the firm for several [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 11:19 am Global banks sue MBIA over splitBank of America, Citigroup, JPMorgan and 15 other large financial institutions filed suit on Wednesday against MBIA, claiming the bond insurer reduced its ability to pay policyholders by splitting its business in twoSource: Financial Times - US homepage | 14 May 2009 | 11:14 am Clever Car Ads
Source: Business Pundit | 14 May 2009 | 11:10 am ITV advertising revenue tumbles 15 per centITV is to impose another £40 million of cost savings next year after advertising dropped 15 per cent and sales fell 13.6 per cent in the first quarter. Source: Latest Business News from Times Online | 14 May 2009 | 11:05 am Lehman eyes spinoff of remaining assets: report(Reuters) - Lehman Brothers Holdings Inc, which sent global markets into a tailspin after filing for bankruptcy in September 2008, is looking at spinning off its remaining assets, the Wall Street Journal said in an unsourced article.Source: Reuters: Business News | 14 May 2009 | 11:00 am Sony makes first loss in 14 yearsJapanese electronics giant Sony reports its first annual loss in 14 years, after being hit by a big drop in sales.Source: BBC News | Business | World Edition | 14 May 2009 | 11:00 am The rich get richer on Wall StreetThe rush to repay government bailout loans is fattening up what's left of Wall Street.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 10:54 am Europe Markets: Stocks in Europe choppy; banks volatileEuropean shares are volatile on Thursday, as investors continue to fret about whether an economic rebound will materialize.
Source: MarketWatch.com - Top Stories | 14 May 2009 | 10:53 am BT job cuts soar to 30000 as it tumbles to annual lossThe former stateowned telecoms company takes radical action as it slides into the red.Source: Telegraph Finance | 14 May 2009 | 10:51 am GM plans to export cars from China to the USThe ailing motor manufacturer's plan is likely to lead to further job losses in the US and anger unions.Source: Telegraph Finance | 14 May 2009 | 10:47 am European stocks pull lower after slump elsewhere (AFP)
Source: Yahoo! News: Stock Markets News | 14 May 2009 | 10:43 am Obama administration to expand housing plan (AP)
Source: Yahoo! News: Business | 14 May 2009 | 10:33 am IEA predicts sharp fall in oil demandThe International Energy Agency predicts that demand for oil will contract by 2.56m barrels a day this year, 160,000 b/d more than it forecast last monthSource: Financial Times - US homepage | 14 May 2009 | 10:24 am How to divvy up your retirement moneyQuestion: I'm 26 years old and I currently contribute 10% of my income to my retirement savings plan at work. Right now I have my money divided among four mutual funds: a large-cap fund, a mid-cap, a small-cap and an international fund. Do you think that's the proper allocation? --Danny, Tustin, Calif.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 10:09 am Japan's stock market should be one of first to recoverThe Japanese stock market is currently pricing in Armageddon even after the latest rally.Source: Telegraph Finance | 14 May 2009 | 10:07 am Profits slump at Credit AgricoleCredit Agricole announces a fall in profits for the first three months of this year of more than three quarters.Source: BBC News | Business | World Edition | 14 May 2009 | 10:06 am If Oil Demand Is Falling, Why Are Prices Going Up?The International Energy Agency, the gold standard for forecasting global supply and demand for crude oil, says that the world will need 2.56 million barrels per day less than it did in 2008. CNBC reports that the number is the largest drop since 1981. Despite this reported lack of demand, the price of oil has moved [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 10:04 am FTSE 100 marks timeLondon's leading index marked time as investors remained undecided about the direction of the market after the recent rally.Source: Telegraph Finance | 14 May 2009 | 9:52 am Vodafone drops 'roaming' charges for overseas callsVodafone customers to pay the same price abroad as they do at home.Source: Telegraph Finance | 14 May 2009 | 9:52 am Sony loses $1 billion, will close 3 plants in JapanSony Corp. said today that it lost $1 billion in the fiscal year through March, its first annual net loss in 14 years, and projected that it would lose even more money this year amid a slump in consumer...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 9:43 am How Long Does Sony’s (SNE) CEO Stringer Keep His Job?Sir Howard Stringer is the first non-Japanese to run Sony (SNE) and putting him into the job was probably a mistake. He was promoted to “re-invent” the company. Instead, he has done what most chief executives without imagination do by cutting thousands of jobs. The cost reductions did not keep Sony from losing $1 billion in [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 9:42 am Henry Paulson Waterboarded The BanksIt is old news that Henry Paulson forced major banks and brokerages to take TARP money at meetings on October 13 of last year. But, it is nice to have documents that show how it happened. The national media did not get its hands on the smoking gun. A group called Judicial Watch came up with [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 9:29 am Spanish economy shrinks rapidlySpain's economy suffered its largest contraction in 50 years in the first three months of 2009, preliminary estimates show.Source: BBC News | Business | World Edition | 14 May 2009 | 9:23 am Asian markets tumble amid fears about US consumer (AP)
Source: Yahoo! News: Stock Markets News | 14 May 2009 | 9:19 am Adios To The Car DealerChrysler and GM (GM) propose closing 3,000 dealers in an effort to save money by narrowing down their distribution networks. Some of the larger dealers probably employ 100 people. In an economy that is losing nearly 600,000 jobs a month, the new efficiency program from Detroit is going to add to the burden of unemployed [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 14 May 2009 | 9:15 am House prices will steady say six in 10Six out of 10 people looking to buy a new home think prices will not fall any further during the coming 12 months a survey has showed.Source: Telegraph Finance | 14 May 2009 | 9:00 am Sony faces sea of red ink as sales fallRead full story for latest details.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 8:56 am Divorce: how to minimise costs in a recessionExpert advice from the lawyers on what to do if your marriage ends in tears.Source: Telegraph Finance | 14 May 2009 | 8:49 am First-time buyers rise by 36% in MarchThe number of first-time buyers jumped by 36 per cent in March, according to figures out today from the Council of Mortgage Lenders (CML). Source: Latest Business News from Times Online | 14 May 2009 | 8:38 am Topsy-turvy times for mutual fundsIf you're a mutual fund investor, the damage from the financial crisis is easy enough to measure: The typical blue-chip stock fund, for example, is down 34% over the past year. What may be less obvious to you is the trouble the crisis has caused fund companies - and what that means for your portfolio. After two decades of booming growth, the fund industry is going through its own meltdown. Long-term assets held by fund companies plunged 37% between October 2007 (when the bear market started) and the end of last year. The result: a wave of budget cutting and consolidation.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 8:29 am U.S. guns for derivatives marketTreasury Secretary Tim Geithner set plans Wednesday to rein in the wild and wooly derivatives markets.Source: Business and financial news - CNNMoney.com | 14 May 2009 | 8:23 am Comet cuts head office jobs after electrical sales slumpComet the British electrical retailer will cut a number of head office jobs and close distribution centres after sales fell 7.7pc over the last year.Source: Telegraph Finance | 14 May 2009 | 8:21 am Suu Kyi faces fresh charges in BurmaBurma's Nobel Peace Prize-winning democracy advocate Aung San Suu Kyi was taken to Rangoon's notorious Insein Prison where she is expected to be tried on charges connected to an American who intruded into the bungalow where she has been under house arrest for the last six yearsSource: Financial Times - US homepage | 14 May 2009 | 8:17 am Bar-coding forestsLiberia to track trees by satellite to reboot timber tradeSource: BBC News | Business | World Edition | 14 May 2009 | 8:17 am Global stocks extend losses (Reuters)
Source: Yahoo! News: Stock Markets News | 14 May 2009 | 8:08 am SEC proposes suit versus Countrywide founder Mozilo (Reuters)
Source: Yahoo! News: Stock Markets News | 14 May 2009 | 8:05 am SEC proposes suit versus Countrywide founder MoziloLOS ANGELES (Reuters) - U.S. regulators have recommended filing a civil fraud suit against Countrywide Financial co-founder Angelo Mozilo for insider trading, the Wall Street Journal reported on Wednesday.Source: Reuters: Business News | 14 May 2009 | 8:05 am U.S. seeks crackdown on loosely regulated derivativesWASHINGTON (Reuters) - The Obama administration moved on Wednesday to exert more control over the shadowy over-the-counter derivatives market, now closely linked to the global credit crisis.Source: Reuters: Business News | 14 May 2009 | 7:47 am U.S. seeks crackdown on loosely regulated derivatives (Reuters)
Source: Yahoo! News: Business | 14 May 2009 | 7:47 am Paulson gave banks no choice on government stakes: memos (Reuters)
Source: Yahoo! News: Business | 14 May 2009 | 7:42 am Paulson gave banks no choice on government stakes: memosWASHINGTON (Reuters) - Documents made public on Wednesday confirm former U.S. Treasury Secretary Henry Paulson gave nine major banks no choice but to allow the government to take equity stakes in them as the Bush administration moved to address turmoil in the financial industry.Source: Reuters: Business News | 14 May 2009 | 7:42 am Banks' recovery fails to lift FTSEBanks bounced back from yesterday's slide to number among the biggest risers in the FTSE 100. Barclays and Standard Chartered ticked up 6 per cent, Royal Bank of Scotland rose 5 per cent and Lloyds Banking Group gained 2 per cent. Source: Latest Business News from Times Online | 14 May 2009 | 7:36 am Sony reports record loss amid consumer slumpSony today confirmed the worst about its performance through the global economic slump by announcing its biggest group operating loss of Y228 billion, (£1.6 billion). Source: Latest Business News from Times Online | 14 May 2009 | 7:22 am Australian stocks: Market plunges over 3 per centMELBOURNE - The Australian sharemarket has plunged more than three per cent over concerns about the stability of the US economy, with falls across all sectors. At 1615 AEST the the benchmark S&P/ASX200 index had dropped 132.7 points,...Source: New Zealand Herald - Business | 14 May 2009 | 7:15 am Craigslist to crack down on erotic service adsAttorneys general applaud the move, but some are skeptical. And experts say it won't have an effect on the wider problem of prostitution.Bowing to public pressure from a nationwide cadre of law enforcement officials, Craigslist said Wednesday that it would shutter the "erotic services" section of its website and pledged to closely vet ads for massages, escorts and other adult services that fall short of prostitution.
Source: L.A. Times - Business | 14 May 2009 | 7:00 am Camarillo-area greenhouses produce 21st century cropsHigh-tech facilities hoard water, generate electricity and produce 20 times more tomatoes per acre than conventional farms. But the seed money needed is also far greater.On a coastal plain near Camarillo not far from a U.S. Navy base and an outlet mall, the future of California farming is taking shape.
Source: L.A. Times - Business | 14 May 2009 | 7:00 am Obama administration proposes tighter regulation of derivativesThe complex financial products are widely blamed for the downfall of insurance giant AIG as well as for contributing to the financial crisis.The Obama administration Wednesday proposed a broad new framework for regulating the dark and complex world of over-the-counter derivatives, vowing to shine a light on the financial products behind the downfall of insurance giant American International Group Inc.
Source: L.A. Times - Business | 14 May 2009 | 7:00 am SEC staff recommends civil fraud charges against Mozilo of CountrywideThe co-founder and former chief executive of the onetime mortgage giant could face charges of insider trading and failing to disclose risks to shareholders.Former Countrywide Financial Corp. boss Angelo R. Mozilo, whose embrace of exotic loans helped fuel the mortgage boom and meltdown, will face Securities and Exchange Commission fraud charges unless his lawyers prevail in an eleventh-hour appeal, people familiar with the SEC's investigation said Wednesday.
Source: L.A. Times - Business | 14 May 2009 | 7:00 am Retail sales down in April for a third straight monthRetail sales fell in April for a third straight month, dashing hopes that consumer spending was starting to revive and would help end the recession.Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am E-Verify program confirming workers' legal status grows in popularityDespite concerns about the reliability of the Web-based U.S. program to block hiring of illegal immigrants, 1,000 new businesses are signing up each week, with nearly 10,000 in California enrolled.The federal government's E-Verify program, which seeks to reduce the hiring of illegal immigrants, is becoming increasingly popular, with 1,000 new businesses signing up each week despite concerns about its reliability.
Source: L.A. Times - Business | 14 May 2009 | 7:00 am Craigslist to crack down on erotic service adsAttorneys general applaud the move, but some are skeptical. And experts say it won't have an effect on the wider problem of prostitution. ...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am 20th Century Fox orders up movie pact with McDonald'sThe fast-food giant will help promote five major studio releases through 2010. When it comes to marketing movies...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am Stocks fall on weak retail sales, foreclosure jumpKey stock gauges sank more than 2% on Wednesday, marking for most of the major indexes their first three-day losing streak since Wall Street's spring surge began.Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am Verizon to sell phone lines to Frontier Communications for $5.3 billionVerizon Communications Inc. said Wednesday that it reached a deal to sell scattered phone service areas outside its main Northeastern and California territories for $5.3 billion in stock.Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am Obama administration proposes tighter regulation of derivativesThe complex financial products are widely blamed for the downfall of insurance giant AIG as well as for contributing to the financial crisis. ...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am Intel fined $1.45 billion by European antitrust regulatorsThe Santa Clara company was accused of offering improper rebates and other discounts to discourage companies from buying microprocessors from its smaller rival, Advanced Micro Devices Inc. ...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am E-Verify program confirming workers' legal status grows in popularityDespite concerns about the reliability of the Web-based U.S. program to block hiring of illegal immigrants, 1,000 new businesses are signing up each week, with nearly 10,000 in California enrolled. ...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am MGM Mirage looks to raise $2.5 billion in capitalThe Las Vegas casino operator will tap billionaire Kirk Kerkorian, its majority shareholder, as it offers 81 million new shares. It also will use the Bellagio and Mirage resorts as collateral. ...Source: RSS feed - channel BNPaperBusiness | 14 May 2009 | 7:00 am Intel fined $1.45 billion by European antitrust regulatorsThe Santa Clara company was accused of offering improper rebates and other discounts to discourage companies from buying microprocessors from its smaller rival, Advanced Micro Devices Inc.European regulators demonstrated what the Obama administration's tough new antitrust stance might look like, levying a record $1.45-billion fine Wednesday against Intel Corp. for abusing its dominance in the computer chip market.
Source: L.A. Times - Business | 14 May 2009 | 7:00 am Network Rail chief to part-waive annual bonusNetwork Rail’s chief executive has bowed to Government pressure by agreeing to give up part of his bonus. Source: Latest Business News from Times Online | 14 May 2009 | 6:54 am BT to axe 15,000 staff as annual losses swellBT, the telecoms giant, said today it will cut another 15,000 jobs over the next 12 months after making a full-year loss of £134 million due to continuing problems within its Global Services division. Source: Latest Business News from Times Online | 14 May 2009 | 6:31 am NZ stocks: Few standout stocks in 'sea of red'Goodman Property (GMT) was one of the few standout companies listed on the New Zealand stock exchange today, with 67 other companies falling in share price and the sharemarket index dropping by 35.4 points by 5pm. The benchmark...Source: New Zealand Herald - Business | 14 May 2009 | 6:08 am Currency: Dollar dips below US60cThe New Zealand dollar's value has fallen as United States consumers question early signs of economic recovery. By 5pm the NZ dollar was trading at 59.16USc, down from US60.58c at the same time yesterday. People could be starting...Source: New Zealand Herald - Business | 14 May 2009 | 5:57 am California treasurer asks U.S. to backstop state borrowingBill Lockyer requests the federal government to in effect guarantee California's debt against default, so that investors would be willing to provide the financing at reasonable interest rates.California Treasurer Bill Lockyer on Wednesday formally requested federal help to backstop a wave of short-term borrowing the cash-strapped state will need to undertake this summer.
Source: L.A. Times - Business | 14 May 2009 | 5:30 am Cities brace for shutdown of auto dealershipsA wave of closures by GM and Chrysler is likely to leave many car lots sitting empty. Dozens of cities also depend on sales tax revenue from the dealerships to balance their budgets.With struggling automakers expected to announce the shutdown of thousands of dealerships starting today, cities are bracing for a wave of blight.
Source: L.A. Times - Business | 14 May 2009 | 5:26 am Student lender Sallie Mae reverses stand on subsidiesThe company now backs Obama's efforts to eliminate the federal subsidies. Its about-face could make it more likely that the government will succeed in altering how millions pay to attend college.For two decades, every attempt to overhaul the $85-billion-a-year student loan industry by eliminating subsidies to lenders has faced insurmountable opposition from one of the most powerful institutions in the business: Sallie Mae, the world's largest student loan company.
Source: L.A. Times - Business | 14 May 2009 | 5:01 am Smiling all the way to the bank, Australasia's new richest manSYDNEY - New Zealand businessman Graeme Hart has topped gaming magnate James Packer as the richest person in Australasia, according to Forbes Asia magazine's rich list. Mr Hart's net worth was calculated at US$4.7 billion ($8.1...Source: New Zealand Herald - Business | 14 May 2009 | 4:39 am These Soaring Shares Could Mean Trouble (On the Street)U.S. stocks have fizzled this week, but are only slightly below breakeven for the year. The likes of Apple (AAPL), Google (GOOG) and Amazon (AMZN) are hanging onto gains of more than 25%. Call that a sign of hope or overconfidence, depending on your view. One top gainer is more difficult to read, but also more telling: ProShares UltraShort 20+ Year Treasury (TGT), an exchange-traded fund, is up more than 30% in 2009. Before I explain why you should care about it, let me break down the name. ProShares is an investment fund company. “Ultra” is its way of saying this fund uses derivatives to try to double the results of an index it tracks, while “Short” means the fund is betting against that index, so managers are hoping to produce a 2% gain for each 1% the index loses. The index in this case is the Barclays Capital U.S. 20+ Year Treasury Bond index. (It used to be a Lehman Brothers index before that firm went bust.) The “20+” in the name means the index tracks Treasury bonds that mature in 20 or more years. And of course, an exchange-traded fund is an index fund that trades all day just like a stock. Put it all together and TGT is a device traders use to bet aggressively against long-term Treasurys. Last year Treasury bonds were one of only a few investments that did well. Investors who bet on (not against) the aforementioned index using an ETF with no leverage made 34% -- almost as much as stock investors lost. Yields on Treasurys were puny and turned pitiful late in the year, but investors bought them anyway. With most other assets imploding, America’s promise to pay its debts suddenly seemed the safest bet around. It was panic buying, really: During Berkshire Hathaway’s (BRK.A) annual meeting earlier this month, Warren Buffett showed a slide of a Dec. 19 trade in which Berkshire sold Treasury bills due April 29, 2009, with a maturity value of $5 million. The buyer paid $5,000,090.70. In other words, so fierce was demand for these Treasury bills, the buyer locked in a guaranteed loss of $90.70 just to own them. Around that time, a SmartMoney colleague, Dan Burrows, cautioned readers not to hunker down with the herd in negative yields. Those who bought just about anything else have since prospered. Viewed in that light, this year’s run-up in TGT seems promising. It means investors have grown less panicky about stocks and other risky assets. This week the fund is giving up some recent gains, just like the stock market. Let’s hope that doesn’t suggest investors are about to pile back into Treasurys and abandon everything else. There’s another, darker way to read the fund’s movements, though. Treasury yields, like stock dividend yields, move in the opposite direction of prices. A purchase of TGT, then, might as well be called a confident bet on higher long-term interest rates. The interest rates the U.S. government must pay on its long-term debt depend in part on buyers’ perception of its future ability to pay — or more precisely, on its ability to do so without creating too much new money. (The government will always be able to pay so long as the debt is in dollars and it controls the Mint, but those dollars might be worth less.) If Treasury buyers foresee an erosion in the value of dollars they’ve lent, they’ll demand higher interest rates. When an auction of new long-term Treasurys last week drew weak demand, the 30-year yield rose more than 0.2 percentage points to about 3.31%. On Monday, government accountants announced this year’s budget deficit (the amount by which the debt will increase) will likely reach $1.85 trillion. That’s four times last year’s record deficit. More debt in the face of weak demand for it seems to suggest rates will rise sharply. So far, they haven’t. In fact, they’ve backed off since last week’s auction. But coming months should prove interesting times for TGT investors. If the dominant theme for Treasurys continues to be investors stampeding toward them when stocks turn frightening, TGT investors might be due for disappointment, since stock valuations are starting to look plump. If, however, Treasurys break from their see-saw ride with stocks and start reacting more to the pace of America’s borrowing, I fear for just how lucrative TGT could become as rates climb ever higher. On a related note, another fund company, Direxion, will soon offer funds based on the same index (bull and bear versions), only levered three times instead of two. On another related note, if you’re not sure whether such funds are for you, they’re probably not. They’re risky because of the leverage. They’re expensive for all but quick trades (yearly expenses: 0.95%). And they’re complicated. For example, their targets of double this or triple that apply to daily index movements, not long-term ones. Because the funds amplify volatility, and because volatility affects the compounding of daily returns, long-term returns can vary sharply from the stated goal. 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 | 14 May 2009 | 4:00 am Hess: A Bold Explorer With Big, Undervalued AssetsWITH ITS HEAVY EMPHASIS ON EXPLORATION and a recent history of drilling successes, Hess is arguably the best major energy stock for anyone betting on an eventual recovery in crude oil. The New York-based concern (HES), with a stock-market value close to $20 billion, has the equivalent of 1.43 billion barrels of energy reserves, 68% of it oil, the rest, natural gas. Like other energy companies, it is scaling back capital spending this year, to $3.2 billion. But it still is allocating $800 million for exploration -- a smart move, given Hess' discoveries in Australia, Libya, Egypt and elsewhere last year. Overall, Hess devotes 80% of its capital spending to exploration and production. Other names, such as industry giant ExxonMobil (XOM), might offer more stability, and smaller rival Murphy Oil (MUR) is growing faster. But Hess could enjoy the biggest pop, relative to its size, from an oil rebound. While being willing to spend big in the hope of discovering yet more oil and gas, Hess is bolstering its finances. Its debt-to-capital ratio, which was at 52% seven years ago, has been halved to 26.3% as of the end of the first quarter, and management plans to cut $200 million in costs this year. Hess had net debt of $3.2 billion and $1.1 billion of cash at the end of the quarter, during which it raised $1.25 billion through a debt offering. MANAGEMENT, LED BY JOHN HESS -- son of Leon Hess, who began running the company in the 1930s -- has assembled a portfolio of projects that bulls think will boost reserves and long-term output and lift shares to $70 over the next year and a half, versus their recent 61. Says Oppenheimer analyst Fadel Gheit, "Hess has one of the highest exploration potentials in the sector, and any of their major exploration plays could have significant impact on its valuation." Gheit rates the shares Outperform. If crude prices rebound strongly -- they're off by about $100 a barrel versus levels early last summer -- Hess could easily exceed that target. But the ride will likely be bumpy. Hess stock soared 104% in 2007 and hit an all-time high of 137 last summer when oil jumped above $145 a barrel. But the stock sank to 36 in December, as profits plummeted along with crude prices, which have been ranging in the mid-$40s to mid-$50s in recent months, and management's hedges didn't work out. With petroleum prices still far from their peak, earnings per share could tumble 97% this year, to 18 cents, while revenue could be down by almost a third, to $28.6 billion from $41 billion. But profits could jump next year, if the global economy and crude stabilize. Some analysts expect Hess to earn $750 million, or $2.55 a share, in 2010, and most are basing their estimates on relatively modest expectations for oil and gas. Standard & Poor's, for example, sees oil averaging $54 a barrel next year, up from an estimated $45 average in '09, and gas hitting $6.21 per million British thermal units in '10, versus an average $4.45 per MMBtu this year. Natural gas is still down more than 25% for the year, at $4 per MMBtu, but anticipation of an easing of the recession has pushed oil above $50. That's helped Hess to jump by 20% since April, aided by better-than-expected first-quarter results reported late last month. In the quarter, Hess lost nine cents a share, but oil and gas output, at 390,000 barrels a day, topped expectations. To be sure, the stock has advanced a lot in a short time and could fall back just as quickly. In fact, anyone who doesn't own the stock but wants it would be well-advised to wait for a pullback, which is likely to be temporary. But over the long term, Hess is a solid bet to outrun the overall market amid a pickup in crude pricing, a likelihood as OPEC cuts production further. Last year, Hess increased its energy reserves 8%. Exploration and production generated 24% of revenue and 90% of net income. Marketing and refining chipped in the balance. HESS GOES FOR BIG SCORES, taking significant positions in potentially high-impact wildcat and other wells. Its largest holding, the JDA Phase 2 natural-gas project in the Gulf of Thailand, pumps out 800 million cubic feet of gas a day. But what really has captured the imagination of investors is the company's 40% stake in an area off Brazil called BM-S-22, located south of a major discovery by that country's oil giant, Petrobras (PBR). Project operator ExxonMobil announced in January that it had discovered traces of oil at its first well there. Hess won't speculate on the potential size of the find; drilling under about six miles of water and rock poses major challenges. But Ariel Capital Investment analyst Ken Kuhrt calls the Brazil project a potential "game-changer" for Hess. Barclays Capital analyst Paul Cheng, pricing oil at $80 a barrel long term, pegs Hess's total exploration potential at $777 million to as much as $13 billion, or $2 to $40 a share. Hitting the midpoint of that range, or $5.2 billion, would be significant. One key factor: John O'Connor, who led Hess' worldwide exploration effort for seven years, is now retired. He was replaced by Greg Hill, a well-regarded former Shell executive. Skeptics worry that Hill won't be able to repeat his predecessor's success. That's one reason that Deutsche Bank analyst Paul Sankey has a Hold rating on the stock, which he thinks is worth 46. INVESTORS ARE BETTING THAT bears like Sankey are wrong. The stock now fetches 24 times its expected earnings of $2.55 next year, versus ExxonMobil's 12 times. But Hess is appealing when you divide its enterprise value (market value plus net debt) by proved reserves. On that basis, the market values Hess' reserves at $15.73 a barrel, versus $21.29 for Murphy, for example. Based mainly on projects already online, S&P analyst Tina Vital expects Hess to raise production 2% this year and 3% in 2010. Hess boosted production 1% last year, to 381,000 barrels of oil equivalent. Peer Marathon Oil (MRO) is growing faster, but Hess is a lower-cost producer. Its three-year finding and developing costs average $19.86 per BOE, compared with $23.23 for its peers. "Hess offers better return prospects than some of the others," says Vital, who raised her rating on it to Buy from Hold recently, with a 67 target. For anyone who thinks the long-term direction of energy prices is up, the company looks well worth a wager.
The Bottom Line
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Source: SmartMoney.com | 14 May 2009 | 4:00 am Building Better Credit Cards: Readers' Ideas (Consumer Action)Think credit-card companies need to be clamped down on? You're not the only one. Increasingly, Washington agrees. Legislators’ push for federal regulation of the credit-card industry is hitting a fever pitch this week. President Obama has asked Congress to get him legislation by Memorial Day. Monday, the Senate began consideration of the Credit Cardholders’ Bill of Rights, which passed the House in late April by a wide margin of 357 to 70. They’re also looking at Sen. Chris Dodd’s Credit Card Accountability, Responsibility, and Disclosure Act (a.k.a. the CARD Act). Meanwhile, the American Bankers Association warned senators in a letter Tuesday that the legislation would further restrict the already tight credit market. Both bills in contention support Federal Reserve regulations that would eliminate controversial industry practices such as rate increases on existing balances and require more advance notification of account changes such as rate increases and credit line changes that could incur fees. “Good. They should be required to tell me everything about my account,” says Sue Fuss of West Fargo, N.D., who had two of her accounts closed without notice. “Otherwise, I’d be the one with egg on my face standing at the till, and hearing that my card was declined.” While the regulators and legislators kick around the issue, plenty of average Americans say they are running into real problems. At least 10 million cardholders have seen their interest rates jump in the past six months, estimates the Center for Responsible Lending. And although some banks have taken a few steps to employ the Fed’s rules, most are continuing with their bad behavior. (For a rundown of the worst, read our series.) “I realize the issuers have to have some ability to raise rates and cut credit lines, but it seems arbitrary -- they do it whenever they can get more money in fees and interest,” says Charles Rowland of Sealy, Texas, who had several issuers change his payment due date without notice. “I’d like to see the government lay out some rules, or at least make them disclose what triggers these changes.” Fuss and Rowland are among the hundreds of readers who have flooded us in recent months with tales of their credit-card experiences. Below, a sampling of what those readers are saying: Stop playing with our scores“HSBC cancelled my account with them last month due to inactivity for the past six months, yet they sent me a new card only four weeks earlier. To add insult to injury, I received a pre-approved solicitation for a credit card from HSBC just last week. I have credit scores between 750 and 800. I have never had a late payment and I pay my balances in full each month with the exception of occasional promotional offers. How is the consumer to protect himself when these occurrences are so arbitrary and will obviously impact my credit scores in the long run?” "As we have previously stated, in an effort to reduce credit risk and refine strategies for our card business, we have tightened credit standards, reduced or canceled higher risk credit lines, and closed a number of inactive accounts,” says HSBC (HBC) spokeswoman Cindy Savio. “Our customer service representatives are always available to address any specific concerns a customer may have regarding their account.” HSBC declined to comment on individual cardholder accounts. Speak plainly, not in fine print“I received a written notice in the form of one of those booklets that is about six inches tall and unfolds to over two feet long written in a small font on both sides. When you get this, you know something has changed, but whatever has changed is buried. I found out the next month the change was that I now have a fluctuating due date. When I missed the earlier due date, they applied late fees and interest even though my previous month’s charges were paid in full when the month closed. The credit-card companies make a game of figuring out how to charge more of these fees.” Leave us some available credit“My wife and I have FICO scores well over 700 and no negatives on our credit record. With a balance of $4,700 as of today and a credit limit of $14,000, AmEx lowered our credit line to $5,000. We received a voice message and an email notifying us of the change with a letter arriving in the mail. With American Express receiving TARP money, this seems like such a dastardly act which deserves some kind of response from Capitol Hill.” American Express (AXP) declined to comment on individual cardholder accounts. Keep our accounts active“Bank of America did a good one to me. I called to see if there were any lower rates that I could get and without answering my question, they told me to cut up both of my cards. [They had closed them without notice.] I had no late payments and I always paid the cards off. Then a few days ago I got a letter that said that since I was in such good standing with them, they had increased my credit limit to $30,000. What a joke!” “We continue to closely monitor accounts for risk and may make adjustments in customers’ lines as appropriate based on their risk profile and performance with us,” says Bank of America (BAC) spokeswoman Tara Banks. "We also are closing some accounts with zero balances that have been inactive for more than a year. These are not necessarily new practices, but we are taking a more aggressive look at accounts to control risk given the current environment.” She declined to comment on individual customer accounts. 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Source: SmartMoney.com | 14 May 2009 | 4:00 am Futures Flat Ahead of Economic Data (Market Update)News at a Glance
The LowdownTraders are no hurry to return to equities. Stocks looked to open flat Thursday, as traders awaited two key economic reports. Shortly before 7:30 a.m., Dow, Nasdaq and S&P 500 futures were trading right around fair value. On the docket for today: the April reading of the Producer Price Index and the latest weekly jobless claims report. With demand still depressed, no expects a big bump in a wholesale prices, but the labor data will attract some attention after last week's better-than-expected monthly jobs report. Traders will be eyeing that number to gauge the labor market's recovery. The woes for retailers continued Thursday, as Sony (SNE) posted its first quarterly loss since 1995, the year the firm unveiled the original PlayStation. World markets were mostly lower. In Asia, Japan's Nikkei dropped 2.6%, while Hong Kong's Hang Seng lost 3.0%. In Europe, the U.K.'s FTSE stood even in afternoon trading. In energy, oil prices took a step back. By 7:24 a.m., crude traded down $1.09 at $56.93 a barrel. Corporate News
The Economy
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Source: SmartMoney.com | 14 May 2009 | 4:00 am Banks sue MBIA over $5 billion restructuringNEW YORK (Reuters) - A group of major banks including Citigroup Inc, JPMorgan Chase & Co and Barclays Plc has sued MBIA Inc, charging that the bond insurer illegally restructured its operations by moving $5 billion of assets and leaving a key unit effectively insolvent.Source: Reuters: Business News | 14 May 2009 | 2:56 am Tough conditions set to continue: AMPSYDNEY - AMP says market conditions are tough and the insurer and wealth manager is working on the assumption those conditions will continue into 2010. Chairman Peter Mason has told shareholders at the group's annual general meeting...Source: New Zealand Herald - Business | 14 May 2009 | 2:35 am Manufacturing shows glimmers of hopeThe manufacturing sector is showing signs that it may get through the current economic crisis relatively unscathed. Manufacturing had its second consecutive improvement in April, although the sector continues to remain in contraction,...Source: New Zealand Herald - Business | 14 May 2009 | 2:15 am Groser pushes free trade and Doha to US Chamber of CommerceTrade Minister Tim Groser has told the US Chamber of Commerce in Washington DC that the current Doha round of world trade talks needed to be completed, warning the financial climate was pressuring governments to "do things that are...Source: New Zealand Herald - Business | 14 May 2009 | 2:00 am Fairfax credit rating downgradedFairfax Media Ltd says it's disappointed ratings agency Standard & Poor's (S&P) has decided to downgrade its credit rating, saying it is confident of weathering the economic downturn. S&P has lowered the group's rating from BBB...Source: New Zealand Herald - Business | 14 May 2009 | 1:00 am Report: SEC may charge Angelo Mozilo with fraud (AP)AP - The staff of the Securities and Exchange Commission has decided to recommend that the agency bring civil fraud charges against Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp., according to a published report Wednesday.Source: Yahoo! News: Stock Markets News | 14 May 2009 | 12:59 am Report: SEC may charge Angelo Mozilo with fraud (AP)AP - The staff of the Securities and Exchange Commission has decided to recommend that the agency bring civil fraud charges against Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp., according to a published report Wednesday.Source: Yahoo! News: Business | 14 May 2009 | 12:59 am Banks announce cuts in mortgage ratesThis morning sees some reductions to fixed-term mortgage rates - but not by very much. Kiwibank announced today it was cutting its six month and one year mortgage rates by 34 and 10 basis points (bps), respectively. Kiwibank's...Source: New Zealand Herald - Business | 14 May 2009 | 12:30 am Chance to deepen capital markets, says Commerce MinisterA shift by corporates towards capital raising through the debt market should be used as an opportunity to deepen New Zealand's capital markets, Minister of Commerce Simon Power says. With the global financial crisis making it harder...Source: New Zealand Herald - Business | 14 May 2009 | 12:00 am US calls for OTC derivatives regulationThe Obama administration unveiled a sweeping plan to regulate over-the-counter derivatives in an attempt to seize greater control over an opaque market that has been blamed for exacerbating the financial crisisSource: Financial Times - US homepage | 13 May 2009 | 11:47 pm SunTrust Raised to `Neutral' From `Sell' at Goldman SachsSource: Bloomberg - All Podcasts | 13 May 2009 | 11:17 pm CCB share deals soar after BofA stake saleThe volume of share dealing in China Construction Bank soared on Wednesday, fuelling speculation that some buyers of Bank of America's $7.3bn sell-down had flipped their holdings to pocket huge gainsSource: Financial Times - US homepage | 13 May 2009 | 11:11 pm Write-Offs: 05.13.09$$$ From the Mozilo's Lawyer: Media "innuendo" about insider trading is "scandalous" $$$ Advice to disgruntled bank patrons: Don't say you'll show up packing heat. [Star Tribune] $$$ SEC Seeking Public Ridicule On Uptick Rule And Circuit Breaker Restrictions [zero hedge] $$$ Dan Loeb sells egg for $5.4 million. [Cityfile] $$$ Obama Pushes Broad Rules for Oversight of Derivatives [NYT]
Related: U.S. Securities and Exchange Commission - Business - Star Tribune - Uptick rule - Insider trading Source: Dealbreaker | 13 May 2009 | 11:00 pm Need to know: Google reshoots Japan ... ING loss ... Greggs risesView video and Need to Know interactive heatmap Source: Latest Business News from Times Online | 13 May 2009 | 11:00 pm Compass plots profitable path by catering to allRunning a business that employs more than 350,000 people worldwide, serves more than ten million meals a day and whose customers range from Chelsea Football Club to Google is a challenge many would find daunting. Source: Latest Business News from Times Online | 13 May 2009 | 11:00 pm Passenger Focus watchdog will replace Air Transport Users CouncilThe airline passenger watchdog, a long-standing critic of government policy on aviation, is to be abolished. The Government plans to replace the Air Transport Users Council with a body appointed directly by the Transport Secretary. Source: Latest Business News from Times Online | 13 May 2009 | 11:00 pm Dunkelberg Says FDIC Increases Overburden Small BanksSource: Bloomberg - All Podcasts | 13 May 2009 | 10:52 pm Hear: Scandals To RememberOn today's Planet Money: -- What happens when you take giant international corporations and try to give them a single regulator? Mike Roster, a bank regulatory lawyer, says you get a whole lot of folks being overly polite. Part of the problem, Roster says, is that people too quickly forget the disasters of the past. -- Before there was Bernie Madoff, there was Ivar Krueger. In his new book, The Match King: The Financial Genius Behind a Century of Wall Street Scandals, Frank Partnoy reveals a riot of scandal that we'd all do well to remember. Bonus: The full interview with Elizabeth Warren, and, after the jump, a Prius dilemma. Download the podcast; or subscribe. Intro music: The Black Lips' "Bad Kids." Find us: Twitter/ Facebook/ Flickr. From JL Johnson: For years I have wanted a Toyota Prius but until recently there was no real problem with my current car, which I should point out is still newish and paid for. So, I made a compromise with myself and started making payments equal to the amount I would expect to pay on an auto loan directly into my savings account. The idea was, by the time my current car got too old, gave up on me, or I could no longer resist the hybrid goodness that is the Prius I would have enough money in my "Prius Fund" for a more than substantial down payment or perhaps enough to pay cash outright. Fast forward to present day. . . My car is approaching 100k miles and it's starting to act a little flakey. That paired with huge dealer incentives is really making me want to rush out to the dealership. But, there is a problem. That Prius fund I mentioned, the money I set aside specifically for a new Prius, I don't want to spend it. This has me thinking about a somewhat recent podcast where you outlined the denomination effect. I wonder, is what I am experiencing somewhat related to the denomination effect? I find it odd that I, as with many other Americans don't stress much about financing a large purchase, but when the money is in my hand it's a much harder decision. I worry about debt and try to be frugal wherever possible but it troubles me that I would rather finance a Prius than part with my hard earned long saved cash. As for the Prius, perhaps it will have to sit on the lot for a while longer. I think I'll just take my current car to the mechanic down the street. Hmm, no wonder the auto parts industry is doing so well. ;-) » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 May 2009 | 10:47 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 | 13 May 2009 | 9:55 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: Business | 13 May 2009 | 9:55 pm How the major stock indexes fared Wednesday (AP)AP - Stocks dropped Wednesday after data suggested the economy is not bouncing back as quickly as investors hoped. The Commerce Department said retail sales unexpectedly fell in April for the second straight month, while RealtyTrac Inc. reported a rise in home foreclosures.Source: Yahoo! News: Stock Markets News | 13 May 2009 | 9:50 pm Obama does U-turn on detainee abuse photosIn a reversal, President Barack Obama objected to the release of dozens of photographs showing the abuse of terrorism suspects, fearing the pictures could trigger a backlash against US troopsSource: Financial Times - US homepage | 13 May 2009 | 9:33 pm WSJ: SEC Staff Recommending Filing Civil Fraud Charges On Angelo Mozilo's Ass
Will BAC be on the hook for those sweet legal fees? A reader believes so! "And if I remember correctly Ken Lewis (aka his shareholders) was a schmuck and agreed to cover all of Angelo's legal costs, which would probably include civil charges."
Related: Insider trading - U.S. Securities and Exchange Commission - Business - Countrywide Financial - Angelo Mozilo Source: Dealbreaker | 13 May 2009 | 9:31 pm Presented By:Source: Dealbreaker | 13 May 2009 | 9:31 pm Fate of LatAm units upsets Fiat planFiat's talks about creating a car supergroup including Opel/Vauxhall, Saab and Chrysler have hit obstacles over the issue of GM's Latin American operations.Source: Financial Times - US homepage | 13 May 2009 | 9:30 pm Generic flu drug challenge to TamifluAn Indian pharmaceuticals company is gearing up to sell a cheap version of Tamiflu to emerging economies, pitching intellectual property rights against affordable access to medicinesSource: Financial Times - US homepage | 13 May 2009 | 9:30 pm How markets affect the consumerConsumer spending accounts for 70 percent of the American economy, so news of falling retail sales isn't exactly good. Ashley Milne-Tyte explores how economic indicators are affecting the way we shop.Source: Marketplace | 13 May 2009 | 9:03 pm Homes built for a new American DreamHome developers are morphing designs to match the needs of homeowners in a new economy. Kai Ryssdal talks to Elizabeth Moule, an architect in Pasadena, Calif., who's using the subprime crisis as an opportunity to re-think how homes are built.Source: Marketplace | 13 May 2009 | 8:52 pm Africa could slide back into povertyThe Africa Development Bank says millions of Africans are at risk of a substantial income drop. The collapse in the price of commodities could deprive every African of $250 a year. Stephen Beard delves further into the potential crisis.Source: Marketplace | 13 May 2009 | 8:37 pm In This Scenario "Aggressive" Would Be A Euphemism For...?
Frontline: Did you like them? Also:
Related: Greenwich - Monica - London - England - United States Source: Dealbreaker | 13 May 2009 | 8:18 pm Young families take new look at city lifeA growing number of young families are rethinking the traditional American Dream of owning a home in the suburbs. They're now considering the advantages of renting a place in the city. Sam Eaton reports.Source: Marketplace | 13 May 2009 | 8:09 pm Stores adapt to a whole new shopperRetail is preparing for the upcoming back to school season with smaller inventories and more style for the thrifty buyer. Stacey Vanek-Smith explores what new shopping data reveals about how shoppers have changed in a new economic reality.Source: Marketplace | 13 May 2009 | 8:07 pm NYC asks SEC to bar pension advisers' campaign gifts (Reuters)Reuters - The U.S. Securities and Exchange Commission should crack down on rules that let investment advisers for public pensions make campaign donations to elected officials who manage the funds, New York City's comptroller said on Wednesday.Source: Yahoo! News: Stock Markets News | 13 May 2009 | 8:05 pm Intel denies sales tactics were illegalThe E.U. hit chip-maker Intel with a $1.5 billion antitrust fine for alleged illegal sales tactics, which was good news to competitor AMD. But Intel denies the practices were illegal, and says it will appeal. Janet Babin reports.Source: Marketplace | 13 May 2009 | 7:25 pm Telsey Says U.S. Consumers Facing `Headwinds' in Coming MonthsSource: Bloomberg - All Podcasts | 13 May 2009 | 7:25 pm The Optimism Of 1930Megan McArdle compares the retail sales numbers and the new record for foreclosures to the hunger for green shoots, and decides: I don't want to push the Great Depression analogy too far, but what's surprising when you go back to primary sources from 1930 is the optimism. I don't mean to imply that everyone thinks things are just swell. But while you know that they are facing the worst economic decade of the twentieth century, they don't. They're expecting something more like the recession that followed World War I. People are cutting back, but they're still spending, particularly because companies are slashing prices to move inventory. It was the long grind of the years that followed, and the catastrophe of the second banking crisis, that scarred them permanently. And this shows up in the economics stats and the stock market, which did not, as we like to imagine, simply decline in a straight line. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 May 2009 | 7:09 pm Shepherdson Says 56 Years of Net Housing Wealth EvaporatedSource: Bloomberg - All Podcasts | 13 May 2009 | 7:07 pm Live-Blogging The Renaissance RIEF Call
- The first time I gave my real name and company. Oh, but they're wise to my game, and after 5 minutes, an operator gets on and informs me that "Ms. Levin, the administrators have requested that you be disconnected from this call." - I can tell this is a job for an alter ego, Elizabeth Spring, and so I call back having been reincarnated thusly. I'm listening and taking notes for the famous British banking concern...BCSH. - Dr. Jim Simons and Dr. David Lippy, senior researcher on RIEF in the hizzous. - [I love this man] Simons: I'm going to start on background. And when I say "background," I mean background. I'm going back thirty years.
Related: Jim Simons - Elizabeth Spring - Renaissance - Alter ego - British people Source: Dealbreaker | 13 May 2009 | 7:00 pm Rosetta Stone's Adams Discusses His Language Learning CompanySource: Bloomberg - All Podcasts | 13 May 2009 | 6:57 pm US banks swamped as refi fever takes holdThe rush of US homeowners to refinance mortgages at lower rates is creating a boom in the home lending business, prompting banks to hire thousands of new employees and put them to work on extra shifts to process mountains of paper.Source: Financial Times - US homepage | 13 May 2009 | 6:44 pm Carbon cash will end up in wrong handsThe Obama administration has been counting on big revenues from its climate change plans from selling permits for carbon emissions. But commentator David Frum says the way Congress works, the money will end up in utility companies' coffers.Source: Marketplace | 13 May 2009 | 6:39 pm 20 Graduation Gifts Under $200Are you shopping for a graduation gift, but can’t afford to lay out huge sums of money? The economy may actually be working in your favor. Retailers have continued to slash prices, making good buys of formerly formidable products. See if you can find the perfect gift for your grad among the 20 graduation gifts below, all of which cost less than $200: 1. Noise Canceling Headphones
Estimated price: $80 Whether headed to a dorm room or a crowded shared apartment, your grad will sometimes wish for peace and quiet. Noise canceling headphones make this a real possibility. They work well in coffee shops, crowded libraries, planes, and other loud spaces. Besides removing noise, they are highly responsive to all levels and tones of music, creating a fantastic listening experience. 2. Bluetooth Headset
Estimated price: $32 Driving and dialing can be a risky prospect. A wireless Bluetooth headset will ensure that your grad has no excuse to avoid a hands-free hookup. You might want to pick one up for yourself, too. 3. GPS
Estimated price: $160 If your grad is heading off to a new city, help them find their way with a GPS. Garmin’s products fit a variety of gift budgets. 4. The Naked Roommate Book
Estimated price: $15 This smart, witty, informative book is an indispensable guide for parents and college-bound students alike. Bonus: It’s cheap! (If you don’t like this particular book, bookstores offer a variety of other guides in the genre.) 5. Digital Camera
Estimated price: $156 If your grad still snaps pictures with her cell phone, upgrade her to a real camera. A small camera like the Canon Powershot packs a digital punch without being heavy in weight or price. 6. Gym Membership
Estimated price: $25/month College-related stress can lead grads to neglect their diets–and, more often than not, grow beer bellies while they’re at it. A gym membership will help college freshman keep off the pounds, or help recent grads stay focused, healthy and fit while searching the want ads. Cheaper memberships cost about $25/month. 7. Luggage Set
Estimated price: $100 A quality luggage set can accompany your grad through trips back home, weekend excursions with friends, and, hopefully, high-powered job interviews in the big city. A good set will last up to a decade. 8. Professional Clothes
Estimated price: $150 Take your student shopping with you, or buy them a gift card to purchase their own set of professional clothes. Men need a tie and some slacks, while most women could use a pants suit or blouse/skirt combo. 9. Stock
Estimated price: As low as $1 If you can’t afford a big stock investment, buy as little as one share of company stock, then have it framed. Not only does a framed stock certificate remind a young grad to invest, but it acts as artwork to replace all those old dorm room posters. Best yet, it could increase in value over the years. 10. College Survival Kit
Estimated price: $50 You can construct your own care package, but it won’t have all the cool graphics and packaging featured in ready-made packages like the one above. 11. Resume Writing Package
Estimated price: $75 Offer your grad the chance to polish their resume through a professional writing service. Many specialize in college grads. 12. A Cooler/Grill Combo
Estimated price: $153 If your grad student likes sports, this is the perfect gift. Tailgaters will be floored when they see this all-in-one roll up before the big game. It’s also handy for camping or BBQ-ing out in the quad. 13. A Roadside Safety Kit
Estimated price: $45 Make sure your grad doesn’t get stranded on the open road with a kit that includes rain gear, a first-aid box, snow equipment, jumper cables, and other necessary items. The fun safety kit featured above works well for young women hitting the road. 14. Beach Gift Basket
Estimated price: $65 If your college bound student is attending a college close to the ocean or has recently graduated, consider a fun, practical beach gift set like the one above, which includes a towel, snacks, a tote bag, sunscreen, margarita glasses- and mix, tortilla chips, salsa, and a frisbee. 15. NASCAR Experience
Estimated price: $129 Your NASCAR-loving grad will never forget the experience of flying down the track at over 180mph. The 3-lap qualifying run above, which costs $129, will give them the rush of a lifetime. 16. Spice Rack
Estimated price: $90 For the recent graduate who will be moving into their own place soon, a spice rack (complete with spices) makes an excellent gift. Spices can be expensive–your grad will appreciate a complete starter set. 17. Graduation Photo Album
Estimated price: $55 The photo album idea may be tired, but some companies offer original designs that bring life back into the book. For example, Uncommon Goods‘ hand-finished copper and acid-free sleeves makes it memorable memory-keeper. 18. Passport
Estimated price: $75 Remind your grad that the world is at their fingertips by helping them renew their passport. Even those without immediate travel plans will remember that eye-opening experiences are just a plane flight away. Add a cheap plane ticket as a bonus, if you can afford it. 19. Solar Powered Backpack
The hip Gen Yers graduating from high school or college this year don’t consider themselves green so much as they consider everyone else to be dull gray. Show them that you understand their eco-coolness by outfitting them with a solar-powered backpack that will charge iPhones, laptops, and other necessary devices. 20. The Perfect Alarm Clock
Estimated price: $115 Does your grad’s clock radio have FM, Wifi, MP3, USB, headphone plug, a line out for RCA speakers, internet search capabilities, and two alarm settings with several different tones? Advanced clocks, like the one featured above, will make sure your favorite scholar has no excuse to sleep in. The lithium ion backup battery shorts any power outage excuses, too.
Source: Business Pundit | 13 May 2009 | 5:33 pm JPMorgan Stiffing Delivery Men, Cab Drivers
* Car service only after 10PM (previously 9PM) * "No lucites may be ordered for the J.P. Morgan deal team" * "Corporate Messenger may be used only to deliver final versions of presentations which are for next day meetings. If Corporate Messenger cannot deliver within 2 hours, documents may be sent via taxi. Documents should not be sent via black car unless at personal expense" * "Any JPMC owned technology which is lost or damaged must be replaced at the employee's expense. This policy covers laptops, blackberry units, financial calculators, etc." * Seamless web orders shall not exceed $20 (down from $25) And our personal favorite: * Tips for meals or taxis should be "up to 15% and no higher" From: IB Broadcast On Behalf Of Investment Bank Management Committee
Related: Investment Bank - Business - JPMorgan Chase - Financial Services - Banking Services Source: Dealbreaker | 13 May 2009 | 5:23 pm Stimulus Backs 150,000 JobsVice President Joe Biden sent the boss a letter today, the first quarterly progress report on spending the $787 billion stimulus program. After which, the White House sent out a press release with highlights: -- 150,000 jobs have been created or saved But yes, we read the report itself. As of May 5, Biden writes, $28.5 billion "had already been outlaid." After the jump, who's been laying it out. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 13 May 2009 | 5:08 pm TrueCar: The Latest Piece of the Zag Pie
I read about Santa Monica-based TrueCar in today’s Wall Street Journal. TrueCar, which generates detailed price reports for carbuyers, launched late last month. As most media outlets and blogs have verified, TrueCar is a useful addition to the world of car buying. But will it work as a business? I decided to take a closer look at the company to see if I could find out.
Timing is Everything Many dealers have unusually high inventories they want to sell in a hurry, so buyers willing to research price trends, visit numerous dealers and negotiate assertively can pick up a set of wheels at discounts unheard of just a few months ago. The article says that according to TrueCar, dealers were selling 25% of their 2009 vehicles below cost in March of this year.
What does TrueCar do? Features on the report include a good price, great price, average price paid, and average dealer cost for your car of choice. You can also see how prices on your car have been trending for the past 6 months or so. Graphs, easy-to-understand numbers, and a useful layout make the reports a helpful tool for car buyers. For a complete review, see this TechCrunch article. According to the WSJ article, (CEO Scott Painter says that) TrueCar hopes send car salesmen “the way of the travel agent.” Painter…says the slump in sales has resulted in discounts so steep that new cars can sometimes be less expensive than comparable used ones. What Makes TrueCar Better? TrueCar is sharing the actual data itself, not opinions about what the price should be. We don’t have an opinion about price, we just show the truth. Others give statistical opinions of what is a fair price based on data, but they don’t expose the data itself. TrueCar also gives context to the numbers for the first time, by sharing the full range of prices people have actually paid. Sounds good, but what makes the data itself special? I once again referred to the FAQ: How did TrueCar get its hands on exclusive, proprietary information? How much does that information cost the company, which is currently VC-funded? Are the number of sources along what make the data qualitatively superior to competitors, or is there more to it?
How Will TrueCar Make Money? TrueCar has nothing to sell and is not serving as an “infomediary.” Since we’re not in the business of connecting consumers with dealers, we have no hidden agenda and nothing holding us back from providing accurate data. Our mission is to first make a positive leap forward for consumers and dealers. Down the road we have plans for advertising, and to develop a suite of specialty price distribution products. So they’re not selling anything, they’re not in any kind of business, yet they’re providing a service. The TrueCar business model looked suspect on its own–are undefined monetization plans even viable anymore?–until I realized that it’s just a slice of a much bigger plan.
Secret to Success: The Leadership TrueCar.com is basically a piece of the Zag pie. Zag is positioning itself to serve the car industry, consumers, and advertisers. Painter’s choice to release TrueCar as a quasi-independent product is smart. Through TrueCar, he could gain consumer loyalty for his products and, as a result, increased dealer interest in Zag. One of the main ideas behind Zag is to give consumers a fair price while increasing volume for dealers. TrueCar smoothly puts the consumer component in place. Will dealerships follow? Time will tell.
Source: Business Pundit | 13 May 2009 | 5:01 pm Indicator: Fewer NapkinsElizabeth writes from Arizona: Many years ago, in high school, one of my teachers was telling me that the way you can tell if a restaurant is doing well is by their napkins (at least the restaurants that use paper napkins). Think about a typical short order restaurant that has napkin dispensers, the ones with the paper napkins inside, at every table. This teacher told our class that all the napkin dispensers are pretty much one standard size and are usually filled with one size of paper napkins. He stressed that a restaurant that was doing well always has the napkin dispensers crammed super full so that whenever a restaurant patron goes to get a napkin, they usually pull out 2-3 more than they really need and wind up wasting them. However, you can always tell a restaurant that is struggling a bit because the napkin dispensers are always less full, meaning that you only pull out one napkin at a time, waste fewer napkins, and save the place some money. You know that the restaurant is doing really poorly when the napkins inside the dispenser are smaller (like half size) than the ones that normally fit inside the opening. And lastly, usually a matter of months before a financially suffering restaurant goes out of business when they have the napkin dispensers up at the order counter where they can watch you take napkins or put only one or two napkins on your tray with your meal. Having worked as a food server through high school and college, I have seen this validated time and time again. However, in present times, it seems like every restaurant we go to has is at some stage of this "cutting back on expenses" cycle. Not that I am about wasting paper and killing trees but it seems a bit sad for the state of the world when people are so desperate to save money for their business that they have to resort to saving pennies on cutting down their napkin consumption. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 May 2009 | 4:57 pm Dear Renaissance Investor,Excerpts from the May letter (thanks to a disgruntled reader who would rather remain nameless): The RIEF strategy's preference for low volatility has been contrary to the voracious appetite for volatile stocks that has persisted for the past two months. This high volatility rally, which can hardly last forever, is at the root of our dismal performance. I love the term "can hardly last forever." It only needs to last two minutes longer than you can stay solvent, of course. Of course it is precisely this predilection of RIEF that helped us avoid much of last year's pain. While our recent reversal has erased a large fraction of last year's relative gain, we are still ahead of the index, net of fees, by more than 9% on a 12-month rolling basis and 3.60% annualized since inception, each with a volatility roughly 60% that of the S&P*. We remain confident that RIEF's portfolio will continue to provide higher long-term return and lower volatility than traditional long-only investing, while, at the same time, serving as an effective diversification for portfolios with large exposure to traditional long-only managers. Translation: We were short vol. Sort of like LTCM, but not really. We certainly understand our clients' discomfort at having to withstand a performance onslaught during an extreme market rally, but we believe patience during this period will be soundly rewarded. In order to address your concerns we are scheduling a client conference call for RIEF investors next Wednesday, May 13th at 1:00pm EDT, where I, together with senior researcher David Lippe, will discuss performance and answer investor questions. Details for this conference call and playback instructions are available on our website: www.renfund.com. So it was a scheduled call. Ah ha! And the goods: April / YTD
Related: Long-Term Capital Management - Business - Investing - Jim Simons - Stocks and Bonds Source: Dealbreaker | 13 May 2009 | 4:49 pm Levitt Calls Municipal Bond Market `Oriental Bazaar'Source: Bloomberg - All Podcasts | 13 May 2009 | 4:42 pm SAC's Summer Softball Team To Be Off The Hook This Season
Despite being in possession of a box at Citi Field (apparently purchased for use by the big guy's father in law--who is a huge fan--and worthy employees), it seems our favorite Stamford-based girlies are forging ties with the other New York team, in the name of business. Reggie Jackson sat at the firm's table, as its guest (of honor). Right next to the BG, who obviously made the case that "SAC could use a guy like you, Mr. October." League rules being hard to get around, he'll have to be made an official employee before the first pitch, but surely some desk space can be found. In related news, Lenny Dykstra was seated Ken Griffin-adjacent. Good luck to all. *Whose founder, if our lip reading skills are up to snuff, pledged $5 million.
Related: George Soros - Hedge fund - New York - Reggie Jackson - Paul Tudor Jones Source: Dealbreaker | 13 May 2009 | 4:39 pm Bolton Says Community Bankers Keep Banking SimpleSource: Bloomberg - All Podcasts | 13 May 2009 | 4:25 pm It's Going To Be Delivered By Hank Greenberg and Ed McMahon On One Of Those Gigantic Publisher's Clearing House ChecksLiddy tells Congress: Bailout money will be repaid in 3-5 years, "if economy permits."
Related: Hank Greenberg - American International Group - United States - Politics - Economic Source: Dealbreaker | 13 May 2009 | 4:23 pm Beutel Says Oil May Reach $75 a Barrel by OctoberSource: Bloomberg - All Podcasts | 13 May 2009 | 4:13 pm Recession Signs
Making ourselves feel better. I know, we've had signs like this all over the U.S. But I felt like I'd been seeing fewer signs, which I took as a good sign. I guess they haven't worked through their stock, even at $3.99. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 May 2009 | 3:34 pm Macy's reports wider 1st-quarter lossNEW YORK -- Department store operator Macy's Inc. and apparel supplier Liz Claiborne Inc. both reported wider first-quarter losses Wednesday as they restructure their businesses to adapt to a drop in consumer spending.
Source: L.A. Times - Business | 13 May 2009 | 3:24 pm One Really Stinky FridgeShoppers spent 11.4 percent less in April 2009 than in April 2008, and .4 percent less than they had in March, the Census Bureau reports. As a category, retail and food fell 10.1 percent from last year. Which brings us to the news from San Jose. From the AP: An office worker cleaning a fridge full of rotten food created a smell so noxious that it sent seven co-workers to the hospital and made many others ill. Firefighters had to evacuate the AT&T building in downtown San Jose on Tuesday after the fumes led someone to call 911. A hazmat team was called in. What crews found was an unplugged refrigerator crammed with moldy food. Here's our question: Were more people bringing lunch to work and trying to save on buying food out? But if that's true, then why were so many lunches left to rot? » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 May 2009 | 3:18 pm Frontier Communications Buys Verizon Phone Lines for $5.3 billion
Verizon Communications Inc. has sold off most of its phone service areas outside of California and the Northeast to Frontier Communications Corp. Frontier, which specializes in rural and small-town phone services, will triple in size after the deal, according to the AP. Frontier will own 4.8 million residential and small business phone lines and 1 million broadband connections. “This is a truly transformational transaction for Frontier,” Maggie Wilderotter, Frontier’s chief executive, said in a statement. “With more than 7 million access lines in 27 states, we will be the largest provider of voice, broadband and video services focused on rural to smaller city markets in the United States.” The sale includes all of Verizon’s phone lines in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin as well as some assets in border areas of California. The deal continues Verizon’s strategy of focusing on its core areas, where it is upgrading its phone lines to fiber optics, enabling it offer TV service and faster Internet access. It sold off its phone lines in Maine, New Hampshire and Vermont for $2.3 billion last year to Fairpoint Communications Inc. The New York Times explains the financial details of the deal: As part of the spinoff, Verizon’s shareholders will receive stock in Frontier giving them a stake of about 68 percent in the combined company. Exact terms of the exchange will depend on where Frontier’s shares are trading shortly before the deal closes, subject to limits in the form of a “collar.” The boards of directors of both companies have approved the transaction, which is expected to close in 12 months, Frontier said. Verizon said the spinoff would also deliver value of about $3.3 billion through cash and debt that Verizon would receive before the spinoff, as well as debt issued by Verizon subsidiaries that Frontier would assume. Including debt, the deal has a value of about $8.6 billion.
Source: Business Pundit | 13 May 2009 | 3:10 pm Nigg Sees Corporate Earnings StabilizingSource: Bloomberg - All Podcasts | 13 May 2009 | 3:10 pm Opportunity Knocks on Pandemic’s Door
Drea wrote about companies and industries that could profit from swine flu/H1N1. While some companies are naturally situated to benefit from disease, others are just hoping to hop on the pig wagon. Soap Labs seems to be one of the latter. They’re hoping to get parents to buy their product to help their kids learn to wash their hands thoroughly. SOAPRISE by Soap Labs LLC is a device gets kids to want to wash their hands longer by keeping them engaged in the process. The bottle of soap lights up for 15 seconds after the soap is dispensed. This is the amount of time advised by the Centers for Disease Control for washing your hands in order to effectively kill the germs that cause illness. Kids are encouraged to wash until the light goes out. The founders claim that kids get “excited” about the lit up soap bottle. But I think they’re wrong. This might work for adults. Just ask any Sonic Care toothbrush user. (A pulse lets the brusher know how long to brush.) But as the mother of two bona fide children, I can tell you that even the youngest children get so much more stimulation from the most elementary electronic games that they are not going to be impressed by a lighted soap bottle. Colored foam soap, on the other hand, keeps them entertained for hours seconds.
Source: Business Pundit | 13 May 2009 | 12:47 pm When Words Fail…
Source: Business Pundit | 13 May 2009 | 11:03 am
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