Hedge Fund Winners And Losers: 5/11-5/15

Related: Hedge fund - Investing - Business - Funds - Information and Service Providers
Source: Dealbreaker | 20 May 2009 | 2:30 pm

Monica Lewinksy To Join Geithner At Treasury?

We're not saying its definitively going down but given T. Geith's much noted desperation to fill some slots and apparent proclivity for former Bill Clinton staffers...it does have the potential to happen.

Treasury Secretary Timothy Geithner is surrounding himself with former aides to President Bill Clinton as he attempts to rebound from a rocky start even as top-tier vacancies have slowed decision-making.

Former Clinton press secretary Jake Siewert, a business development and government affairs officer at aluminum giant Alcoa, is headed to Treasury soon as a senior adviser, sources said.

He will join an advisory team that also includes former Clinton economic adviser Gene Sperling and Lee Sachs, who was an assistant Treasury secretary for financial matters under Clinton.

The former Clinton aides have credibility because Clinton's tenure in the 1990s was marked by a strong economy, though the economic problems they encountered bear little resemblance to the crushing challenges President Barack Obama faces.

Earlier: Barney Frank Would Appreicate It If Tim Geithner Would Move His Ass On Hiring People

Related: Bill Clinton - Barack Obama - Gene Sperling - United States Secretary of the Treasury - Timothy F. Geithner
Source: Dealbreaker | 20 May 2009 | 2:23 pm

Germany lines up €1.5bn bridge loans for Opel

Three bidders are expected to bid for a strategic stake in GM Europe as Germany puts in place €1.5bn in bridge financing to help Opel survive what is likely to be a lengthy sale process
Source: Financial Times - US homepage | 20 May 2009 | 1:43 pm

Stocks get a boost at the open

Stocks opened higher Wednesday, as oil prices rose to a six-month high and Treasury Secretary Tim Geithner addressed Congress.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 1:41 pm

BofA CEO: Economy bottoming, pay reform needed (Reuters)

Reuters - Bank of America Corp Chief Executive Kenneth Lewis said the worst of the economic downturn has likely passed and conditions will not worsen as much as feared, a day after his bank raised $13.47 billion in a common stock offering, .
Source: Yahoo! News: Business | 20 May 2009 | 1:40 pm

Stocks open higher as BofA raises capital (AP)

AP - Stocks are higher in early trading on news that Bank of America Corp. was able to raise billions of dollars in capital.

Source: Yahoo! News: Stock Markets News | 20 May 2009 | 1:35 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 1:31 pm

H-P shares down following earnings decline

Hewlett-Packard Co. saw its shares dip in pre-market trading Wednesday after the high-tech giant reported a 17% decline in the fiscal second-quarter earnings as sales fell across nearly all its business lines, especially PCs, servers and printers.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 1:31 pm

BofA CEO Lewis: Industry consolidating, but not us

Bank of America's CEO Ken Lewis expects consolidation in the banking industry to pick up as the economy stabilizes, but says his bank won't be participating. Lewis said in prepared...
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 1:30 pm

iPhone U: Learn how to code apps, free

iPhone Application Programming, taught by a pair of engineers on loan from Apple, was quickly oversubscribed, but free video podcasts opened it up to the masses.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 1:29 pm

Petrobras Seems The Winner in China’s $10 Billion Loan (PBR, SNP, XOM, CVX)

The $10 billion loan from the China Development Bank to Brazil’s Petroleo Brasiliero SA, known as Petrobras (NYSE: PBR), has been finalized.  This deal has been in our pending file since late in February.  Many of yesterday’s reports had this as a fresh deal, which technically it is and technically it isn’t.  Under the deal, [...]

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Source: 24/7 Wall Street | 20 May 2009 | 1:26 pm

UPDATE 1-Gazprom says not expecting net loss in Q4 2009

* Financial investments may be cut by around 30 pct in 2009
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 1:25 pm

Toll sees cause for 'cautious optimism' in housing

Toll Brothers Inc. reports quarterly home-building revenue dropped 51% from the year-earlier period but says it's encouraged by rising deposits during the spring selling season.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 1:25 pm

Bond Report: Treasurys up before Fed buyback, minutes

Treasury prices post slight gains before the Federal Reserve’s next purchase of U.S. debt and the central bank policy makers reveal more about their outlook for the economy and bond purchasing program.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 1:23 pm

Toll Brothers homebuilding revenue dives 51 percent

NEW YORK (Reuters) - Toll Brothers Inc said on Wednesday that it expected to report a 51 percent drop in quarterly homebuilding revenue, but said new orders had improved from the prior period, reflecting a seasonal upturn.
Source: Reuters: Business News | 20 May 2009 | 1:16 pm

Toll Brothers homebuilding revenue dives 51 percent (Reuters)

Reuters - Toll Brothers Inc said on Wednesday that it expected to report a 51 percent drop in quarterly homebuilding revenue, but said new orders had improved from the prior period, reflecting a seasonal upturn.

Source: Yahoo! News: Business | 20 May 2009 | 1:16 pm

Target posts 13 percent drop in 1st-quarter profit (AP)

AP - Discount retailer Target Corp. reported a 13 percent decline in first-quarter profit on Wednesday as it confronts sluggish consumer spending. But the results beat analysts' estimates because of cost-control measures.

Source: Yahoo! News: Business | 20 May 2009 | 1:09 pm

Lloyds warns EU may insist on disposals

Lloyds Banking Group believes it might have to sell off assets to win European approval for UK state aid
Source: Financial Times - US homepage | 20 May 2009 | 1:09 pm

Japan's economy shrinks at record pace

Japan's gross domestic product (GDP) fell 4% last quarter -- the fastest pace on record for the country, the government said Wednesday.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 1:09 pm

Does Palm Deserve Its Tenfold Rise? (PALM, AAPL, RIMM)

Palm, Inc. (NASDAQ: PALM) has been on a tear of late.  It was just Monday that shares were hitting fresh 52-week highs and that was after being one of last week’s winners on a down week.  The whole run is based upon the launch of the Palm Pre for the June 6 launch date on [...]

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Source: 24/7 Wall Street | 20 May 2009 | 1:07 pm

Obama economic panel moves into the spotlight

WASHINGTON (Reuters) - A high-level panel of experts that has been helping to shape President Barack Obama's response to the economic crisis will step into the public view on Wednesday at a meeting to discuss energy issues and job creation.
Source: Reuters: Business News | 20 May 2009 | 1:07 pm

Deere reports lower profit, cuts outlook

CHICAGO (Reuters) - Deere & Co, the world's largest maker of agricultural machinery, reported sharply lower quarterly earnings on Wednesday as lower crop prices and farmers' concerns about the global recession weighed on demand for tractors and harvesters.
Source: Reuters: Business News | 20 May 2009 | 1:07 pm

Metals Stocks: Gold rises on weakening dollar, inflation concerns

NEW YORK (MarketWatch) -- Gold futures rose Wednesday to above $930 an ounce, as the U.S. dollar dropped against the euro for a third straight session amid a cautious tone in financial markets, increasing gold's investment appeal.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 1:05 pm

BofA capital-raising lifts mood on Wall Street

US stocks were set to rebound following moderate losses as investors welcomed the news that Bank of America has successfully raised $13.5bn in recent days through issuing new stock.
Source: Financial Times - US homepage | 20 May 2009 | 12:58 pm

Indications: U.S. stock futures rise on financials strength

U.S. stock futures lean back in positive territory as the issue of financial-sector health returns to the spotlight.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 12:58 pm

Israel Stocks: Israel stocks rise for third-successive day

Stocks in Israel rack up gains for a third day in a row on Wednesday.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 12:58 pm

Evermore Shares at Evergreen Solar (ESLR)

Solar panel maker Evergreen Solar, Inc. (NASDAQ:ESLR) has begun a secondary offering of common stock to raise $60 million. The company plans to offer the underwriter, Piper Jaffray & Co., a 30-day option on an additional $9 million work of common stock. The offer is being made from Evergreen’s existing shelf registration The proceeds will primarily [...]

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Source: 24/7 Wall Street | 20 May 2009 | 12:57 pm

Target profit declines less than expected

NEW YORK (MarketWatch) -- Target Corp. said Wednesday that its first-quarter profit fell a much less-than-expected 13% after the company controlled expenses and inventory to offset declines in discretionary spending.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 12:55 pm

Company boards ignore shareholder views

LONDON (Reuters) - Fund managers are largely ignored when they try to engage with company boards on issues of concern such as corporate governance, a leading investor body said on Wednesday.
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:53 pm

UPDATE 2-D.Boerse sees profit drop; NYSE report a "rumour"

* Capital markets in weak shape, Deutsche Boerse CEO says
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:50 pm

FundWatch: Fund managers grow more bullish on global economy

Fund managers grew increasingly bullish on the global economy in May, finally loosening their hold on cash to buy equities, cyclical stocks and riskier assets like emerging markets.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 12:50 pm

Target posts 13 percent drop in 1st-quarter profit

Target Corp. is reporting a 13 percent decline in first-quarter profit as the discounter continues to confront sluggish consumer spending. But the results beat analysts' estimates because...
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:49 pm

RPT-Brazil's Cosan sells aviation fuel unit to Shell

SAO PAULO, May 20 (Reuters) - Brazilian sugar and ethanol producer Cosan said on Wednesday it agreed to sell its aviation fuel business to Shell Brasil Ltda, the domestic unit of Royal Dutch Shell Plc...
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:47 pm

RPT-Brazil's Cosan sells aviation fuel unit to Shell

SAO PAULO, May 20 (Reuters) - Brazilian sugar and ethanol producer Cosan said on Wednesday it agreed to sell its aviation fuel business to Shell Brasil Ltda, the domestic unit of Royal Dutch Shell Plc...
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:47 pm

Opening Bell: 05.20.09

Banks Use Life Insurance To Fund Bonuses (WSJ)
"Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.

[...]

Bank of America Corp. has the most life insurance on employees: $17.3 billion at the end of the first quarter, according to bank filings. Wachovia Corp. has $12 billion, J.P. Morgan Chase & Co. has $11.1 billion and Wells Fargo & Co. has $5.7 billion. (Wells Fargo acquired Wachovia at the end of last year.)"

BAC Raises $13.7B In Share Sale (Reuters)
Bank of America is now about half way to its state goal of $33.9B, having raised $13.7B in this effort, and $7.3B from the dumping of China Construction Bank Corp holdings.

""We're pleased to have this portion of our capital plan completed," Chief Financial Officer Joe Price said in a statement. "This strengthens and diversifies our capital structure."

White House Calling For Death Of SEC (Bloomberg)
"The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.

The proposal, still being drafted, is likely to give the Federal Reserve more authority to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said."

Officials Weigh Having One Mortgage Regulator (WSJ)
"Senior Obama administration officials are discussing giving a federal agency authority to police mortgages and other consumer-oriented financial products as part of the government's broader overhaul of financial regulation, people familiar with the matter said.

The entity would aim to address what many critics perceive is a blind spot in the existing regulatory structure, which spreads consumer protection across multiple agencies."

The Low Down On The Lingerie League (CNBC)
"Well, honestly, as you guys all know, a lot of leagues have come and gone that have tried to directly compete in some way with the NFL. That's not what we're doing here. This is a fun Friday night out with you and your buddies or you and your girlfriends to watch lingerie football and be part of this Disneyland for football fans type setting that we're putting together in all the host stadiums and arenas."

Related: Bank of America - Wells Fargo - Wachovia - Financial services - JPMorgan Chase
Source: Dealbreaker | 20 May 2009 | 12:45 pm

Target profit down but beats Street (Reuters)

Reuters - Target Corp reported a lower quarterly profit on Wednesday, but the results beat Wall Street expectations as the No 2 U.S. discount retailer kept a tight control on inventory and expenses, and said its credit card business was profitable.
Source: Yahoo! News: Business | 20 May 2009 | 12:44 pm

Target profit down but beats Street

SAN FRANCISCO (Reuters) - Target Corp reported a lower quarterly profit on Wednesday, but the results beat Wall Street expectations as the No 2 U.S. discount retailer kept a tight control on inventory and expenses, and said its credit card business was profitable.
Source: Reuters: Business News | 20 May 2009 | 12:44 pm

Before the Bell: Bank of America, Target, McDonald's in focus

U.S. stock futures moved higher Wednesday, with the focus back on the financial sector after a big capital increase from Bank of America and ahead of testimony from Treasury Secretary Timothy Geithner. See Indications.

Source: MarketWatch.com - Top Stories | 20 May 2009 | 12:43 pm

Brazil's Cosan sells aviation fuel unit to Shell

SAO PAULO, May 20 (Reuters) - Brazilian sugar and ethanol producer Cosan said on Wednesday it agreed to sell its aviation fuel business to Shell Brasil Ltda, the domestic unit of Royal Dutch Shell Plc...
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:42 pm

Brazil's Cosan sells aviation fuel unit to Shell

SAO PAULO, May 20 (Reuters) - Brazilian sugar and ethanol producer Cosan said on Wednesday it agreed to sell its aviation fuel business to Shell Brasil Ltda, the domestic unit of Royal Dutch Shell Plc...
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:42 pm

Deere quarterly profits fall by 38%

Deere & Company, the world's biggest maker of tractors and other farm machinery, saw its second quarter profits suffer as the plunge in construction spending sapped its revenues
Source: Financial Times - US homepage | 20 May 2009 | 12:39 pm

European stocks recover as US futures turn higher (AP)

AP - European stock markets recovered Wednesday as futures markets predicted a solid opening on Wall Street after Bank of America Corp. said it had raised $13.5 billion in much-needed capital.

Source: Yahoo! News: Stock Markets News | 20 May 2009 | 12:39 pm

Conoco Sweeny plans work on FCC-linked unit - filing

For refinery outages in the new Reuters Oil Fundamentals Database see http://bond.views.session.rservices.com/CE/ or go to <OFD/INFO>.
Source: RSS feed - channel BNewsBusiness | 20 May 2009 | 12:39 pm

UAE pulls out of Gulf union plan

The United Arab Emirates is withdrawing from plans for Gulf monetary union, dealing a blow to further economic integration in the oil-rich region.
Source: BBC News | Business | World Edition | 20 May 2009 | 12:36 pm

Oil trades at 6-month high above $60

Oil prices edged to a six-month high Wednesday, above $60 a barrel, ahead of a government supply report expected to show a dip in inventory levels.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 12:32 pm

SolarWinds IPO Debuts With Strength (SWI)

SolarWinds, Inc. (NYSE: SWI) is set to debut in an initial public offering this Wednesday morning.  We got a premium pricing at $12.50 for 12.11 million shares, which is higher than the $9.50 to $11.50 indicated price range.  Despite the name, this is not a green technology or solar power company. About 9 million shares are [...]

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Source: 24/7 Wall Street | 20 May 2009 | 12:31 pm

Where millionaires were made

Gazing across the craggy canyon that is the Hull-Rust-Mahoning mine in Minnesota's legendary Iron Range, it's hard to believe that our planet's most abundant element - iron - is mostly locked away in the earth's core. For here iron-bearing rock has shouldered its way to the surface in heroic quantities, and men and machines have carved out the world's largest iron-ore pit. And as it has for over a century, Range iron still forges the steel sinews of the American economy.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 12:23 pm

UK manufacturers expect fall in output to slow says CBI

British manufacturing firms expect the pace of decline in output to slow markedly in the next quarter suggesting they believe the toughest phase of the recession may have passed the CBI said.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 12:22 pm

Emission cap

US motor industry ordered to make fuel efficient cars
Source: BBC News | Business | World Edition | 20 May 2009 | 12:21 pm

GM expects three Opel bids by deadline Wednesday

FRANKFURT (Reuters) - Cash-strapped General Motors said it expects at least three offers for German unit Opel by Wednesday's deadline, with Italy's Fiat eyeing plans to form Europe's biggest automaker.
Source: Reuters: Business News | 20 May 2009 | 12:19 pm

Manufacturers expect pace of decline to ease

British factories expect the pace of decline in activity to ease in the coming three months, indicating that the worst of the recession could be over.


Source: Latest Business News from Times Online | 20 May 2009 | 12:19 pm

U.S. May Strip SEC of Powers in Regulatory Overhaul (Bloomberg)

Bloomberg - May 20 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.
Source: Yahoo! News: Stock Markets News | 20 May 2009 | 12:17 pm

Australian betting firm under fire for offering odds on jobless rate

Australian betting firm Centrebet has come under fire for offering odds on how many people will be unemployed.
Source: BBC News | Business | World Edition | 20 May 2009 | 12:16 pm

Stock futures point to higher open on economic optimism (Reuters)

Reuters - Wall Street looked set for a higher open on Wednesday as investors remained optimistic that the worst of the economic slowdown was abating.

Source: Yahoo! News: Business | 20 May 2009 | 12:13 pm

Stock futures point to higher open on economic optimism

NEW YORK (Reuters) - Wall Street looked set for a higher open on Wednesday as investors remained optimistic that the worst of the economic slowdown was abating.
Source: Reuters: Business News | 20 May 2009 | 12:13 pm

Stock futures point to higher open on economic optimism (Reuters)

Reuters - Wall Street looked set for a higher open on Wednesday as investors remained optimistic that the worst of the economic slowdown was abating.

Source: Yahoo! News: Stock Markets News | 20 May 2009 | 12:13 pm

Bank of England signals it may pump billions more into the economy

Minutes of the MPC meeting show it's considering more help for the economy.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 12:08 pm

A Frigid April for Housing Starts (BusinessWeek Online)

BusinessWeek Online - Looks like the "green shoots" for the U.S. housing market are taking their sweet time springing through the soil. One day after a surprising jump in the National Association of Home Builders' sentiment survey in April, Wall Street was hoping that the May 19 release of the U.S. housing starts report for April would show a modest uptick, with economists forecasting a rise to a 523,000-unit annual pace from an unrevised 510,000 in March.
Source: Yahoo! News: Business | 20 May 2009 | 12:08 pm

Nothing runs like a Deere - not even Deere

Source: Business and financial news - CNNMoney.com | 20 May 2009 | 12:05 pm

Gas prices: Key to fuel economy

New fuel economy rules announced by President Obama Tuesday have already gained support from major automakers, but the challenge will be getting consumers to play along, especially if gas prices remain relatively low.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 12:02 pm

Mothercare boosted by international sales

Mothercare recorded an increase in sales and profits this morning as it continues to prosper despite the recession, but warned that the weak pound may bring trouble this year.


Source: Latest Business News from Times Online | 20 May 2009 | 11:58 am

Pound strengthens against dollar

The pound gains against the dollar, after it emerges that the Bank of England considered boosting money supplies.
Source: BBC News | Business | World Edition | 20 May 2009 | 11:57 am

Schwarzenegger to discuss drastic California cuts

California Gov. Arnold Schwarzenegger said he would meet with state leaders Wednesday after voters panned a handful of ballot measures designed to pull the state out of a deepening budget crisis.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 11:47 am

Bank of England rate setters voted to inject extra £50bn to shore up confidence

Bank of England rate setters voted to inject an extra £50bn into the economy to shore up confidence in an eventual recovery according to the minutes of their latest meeting.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 11:43 am

Top Analyst Upgrades (ADI, IRE, COST, NOK, PG, PLD, RDS-A, SOLF, TSN)

These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street early this Wednesday morning: Analog Devices (ADI) Raised to Buy at Deutsche Bank; Raised to Neutral at Baird. Bank of Ireland (IRE) Raised to Buy at Deutsche Bank. Costco (COST) Raised to Outperform at Credit Suisse. Nokia (NOK) Raised to [...]

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Source: 24/7 Wall Street | 20 May 2009 | 11:39 am

Cellphone Sales Down, But Not For Apple (AAPL)

Cellphone sales dropped worldwide in the first quarter, but concerns that Apple (AAPL) iPhone sales may have been hurt appear to be overblown. According toIT research firm Gartner, cellphone sales dropped nearly 9% in Q1. Many retailers tried to clear out their stocks of unsold phones. It is not clear if demand will allow them to [...]

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Source: 24/7 Wall Street | 20 May 2009 | 11:39 am

Trader banned for $10m bet after 'boozy' lunch$

A trader has been banned from the City for taking out a huge $10 million bet and concealing it from his superiors after a three and a half hour alcoholic lunch.$


Source: Latest Business News from Times Online | 20 May 2009 | 11:37 am

Demand for UK goods 'still weak'

Demand for goods made in the UK remained weak in May but manufacturers were more upbeat about the future than at any time since September 2008.
Source: BBC News | Business | World Edition | 20 May 2009 | 11:36 am

Largest wind farm to be expanded

Europe's largest onshore wind farm is to be expanded further, Scottish First Minister Alex Salmond announces.
Source: BBC News | Business | World Edition | 20 May 2009 | 11:29 am

European stocks mixed as LSE enters new era (AFP)

AFP - Europe's leading equity markets were mixed on Wednesday, mirroring Wall Street overnight, while the London Stock Exchange kicked off a new era with Frenchman Xavier Rolet taking over at the top.

Source: Yahoo! News: Stock Markets News | 20 May 2009 | 11:29 am

America goes on furlough

Welcome to the summer of the furlough. Manufacturing workers have long suffered from these "temporary layoffs," but the white-collar world is feeling them now, too: During this recession, everyone from universities to technology companies are using furloughs as a way to cut payroll without further trimming their staffs.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 11:28 am

Oil firms above $60 on U.S. refinery fires, Nigeria

LONDON (Reuters) - Oil prices firmed above $60 a barrel on Wednesday to touch a new six-month high on bullish inventory data and a spate of refinery accidents in the United States, in spite of weak market fundamentals.
Source: Reuters: Business News | 20 May 2009 | 11:23 am

Man vs. Jury Duty

Source: Business Pundit | 20 May 2009 | 11:18 am

Spanish economy shrinks at fastest rate on record

The Spanish economy shrank at its fastest rate on record in the first quarter as household spending plummeted due to soaring unemployment amid the recession official data showed on Wednesday.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 11:17 am

Bank execs paid via insurance on workers - report

Banks are using tax-free benefits from life insurance policies they hold for their employees to pay executive bonuses, deferred pay and pensions, according to a published report Wednesday.
Source: Business and financial news - CNNMoney.com | 20 May 2009 | 11:07 am

Oil prices rise to six-month high

Oil prices are back above $60 a barrel ahead of the release of key US inventory figures later on Wednesday.
Source: BBC News | Business | World Edition | 20 May 2009 | 10:48 am

We must wake up to the pensions time bomb

A new survey shows that over half of people near retirement believe their pensions will be inadequate and they will have to keep working. What a damning indictment of our current system says Ros Altmann.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 10:30 am

Lloyds warns Government may rejig toxic insurance scheme

The partnationalised bank warned shareholders the state may raise the cost of accessing its toxic debt insurance scheme.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 10:23 am

US Senate backs credit card curbs

The US Senate votes in favour of a bill to limit credit card fees and stop sudden interest rate increases.
Source: BBC News | Business | World Edition | 20 May 2009 | 10:11 am

Lloyds' new mortgage: marketing ploy or real help for firsttime buyers?

Will Lloyds TSB's new "Lend a Hand" mortgage help firsttime buyers afford a property? We asked the experts what they thought.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 10:10 am

NetFlix (NFLX) Flanks Its Competition Again

NetFlix (NFLX) is making another move to keep it ahead of rivals including Amazon (AMZN) and Blockbusters. It will adding its video-on-demand service to the Microsoft (MSFT) Window Media software. According to CNET, “For Netflix, the partnership offers the Web’s No.1 video rental service the chance to reach scores of of Vista users.” Although Vista sales [...]

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

Banks line up to throw off TARP yoke (Reuters)

Reuters - JPMorgan Chase & Co and several other banks eager to escape the restrictions and stigma linked to government bailout funds may get the chance to do so in the next few weeks.
Source: Yahoo! News: Business | 20 May 2009 | 10:00 am

Banks line up to throw off TARP yoke

NEW YORK/WASHINGTON (Reuters) - JPMorgan Chase & Co and several other banks eager to escape the restrictions and stigma linked to government bailout funds may get the chance to do so in the next few weeks.
Source: Reuters: Business News | 20 May 2009 | 10:00 am

IMF push for more help for Africa

The International Monetary Fund says Africa will need more assistance to cope with a deeper global recession.
Source: BBC News | Business | World Edition | 20 May 2009 | 9:59 am

Intel (INTC) Intends To Bite The Hand That Feeds It

Intel (INTC) plans to introduce a PC operating systems for low-end machines. The software is based on Linux, an open source platform that allows developers to create products that are often less expensive than those marketed by Microsoft. Intel intends to target the netbook market where machines often sell for $300. Adding Microsoft Windows to those [...]

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Source: 24/7 Wall Street | 20 May 2009 | 9:58 am

Air France-KLM to cut 3,000 jobs

Air France-KLM is expecting to shed 3,000 jobs in the current financial year, in a further bid to cut costs.
Source: BBC News | Business | World Edition | 20 May 2009 | 9:55 am

London Stock Exchange tumbles into red in sombre swan song for Dame Clara

The London Stock Exchange has fallen dramatically into the red after writing off almost £500m of goodwill on Borsa Italiana - which it bought for £1.1bn .
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 9:48 am

Vulture Investors May Be The Key To Arresting Falling Home Prices

The housing market and housing starts are still facing deep and intractable problems. Mortgage rates may be low, but bank standards for home loans are higher. No financial firm wants to be stuck owning more houses that have been foreclosed upon. Developers won’t build what they cannot sell. Homes are also less likely to sell in [...]

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Source: 24/7 Wall Street | 20 May 2009 | 9:42 am

Bank considered printing extra £75bn for UK boost

The Bank of England's rate-setting committee considered pumping an extra £75 billion of new money into the UK financial system to kick-start the economy, minutes from its May meeting revealed today.


Source: Latest Business News from Times Online | 20 May 2009 | 9:29 am

Hewlett-Packard (HPQ) Forecast Goes Beyond PCs And Printers

The market was disappointed by Hewlett-Packard’s (HPQ) forecast for the next quarter. The technology company’s results for the past quarter were in line with Wall St. estimates. Analysts look to H-P as a proxy for the sales of computer hardware such as printers, PCs, and servers. But, the company is in many other businesses and they [...]

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Source: 24/7 Wall Street | 20 May 2009 | 9:26 am

Bank of America raises 13.5bn selling shares

Bank of America the biggest US bank by assets raised about 13.5bn £8.7bn by selling stock after US regulators determined it needed more cash to weather an extended recession.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 9:19 am

Mothercare increases dividend as profits jump

Mothercare the mother and baby products retailer raised its dividend by a fifth as profits increased nearly tenfold.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 20 May 2009 | 9:07 am

Global stocks rise again, helped by commodities (Reuters)

Reuters - World stocks rose for the fourth session in a row on Wednesday, despite overnight losses on Wall Street, lifting demand for higher-yielding currencies.

Source: Yahoo! News: Stock Markets News | 20 May 2009 | 8:52 am

Sterling hits five-month high

Sterling hit a fresh five-month high against the dollar as it gained strength on relief that the Bank of England minutes for the May rate-setting meeting were free of any big surprises. It hit $1.5535 before falling back a little to $1.5521 by mid morning. The euro fell to 87.95p from about 88.02p.$


Source: Latest Business News from Times Online | 20 May 2009 | 7:30 am

Julius Baer to spin off funds unit

Julius Baer, the Swiss banking group, surprised investors by saying it would split its private banking and fund management activities into two separate listed companies, a move which may pave the way for the eventual disposal of the group's fund management business
Source: Financial Times - US homepage | 20 May 2009 | 7:19 am

Yell chairman to go after RBS pension backlash

Bob Scott, the former senior independent director at Royal Bank of Scotland (RBS) who agreed Sir Fred Goodwin's £17 million pension, is to stand down as chairman of Yell, the directories business, after opposition from its shareholders over his role at the stricken bank.


Source: Latest Business News from Times Online | 20 May 2009 | 7:10 am

EU may force Lloyds to sell-off core assets

Lloyds Banking Group today has issued a stern warning that the Government bailout, after the disastrous purchase of HBOS, could lead to stringent action from the EU, including the forced sale of some core businesses.


Source: Latest Business News from Times Online | 20 May 2009 | 7:03 am

Australian stocks: Market closes slightly higher

SYDNEY - The Australian share market closed slightly higher as heavyweight resources stocks posted gains on a day of relatively light trade. At 1615 AEST, the benchmark S&P/ASX200 was up 7.3 points, or 0.19 per cent, at 3824.6,...
Source: New Zealand Herald - Business | 20 May 2009 | 7:03 am

OpenTable IPO attracts hungry investors

Underwriters raise the price range for the San Francisco firm's initial public stock offering to $16 to $18 a share, from $12 to $14. The offering is to be priced this week. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Congress passes bill to help stem foreclosures

The measure would expand a $300-billion program that encourages lenders to write down an individual's mortgage and expand homeowner eligibility. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Credit card reform becomes opportunity to hammer good customers

Card issuers are likely to go after good cardholders for extra money if they can't profit as much from bad ones. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Stocks waver after surprise drop in housing data

NEW YORK -- Investors are curbing their optimism about an economic rebound after housing construction tumbled to a record low in April.
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Albertsons is set to announce widespread price cuts

The Southern California supermarket chain is hoping to lure back budget-minded shoppers lost to Wal-Mart, Target and other discounters during the recession. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Tesla Motors gets a financial boost from Daimler

The German automaker buys an almost 10% stake in the California electric car maker, which had recently turned to low-cost federal loans. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Albertsons is set to announce widespread price cuts

The Southern California supermarket chain is hoping to lure back budget-minded shoppers lost to Wal-Mart, Target and other discounters during the recession.

Cash-strapped food shoppers in Southern California are spending more of their grocery budgets at discounters and superstores that are rapidly expanding their food selections. And the big supermarkets are fighting back.

Source: L.A. Times - Business | 20 May 2009 | 7:00 am

HP profit falls 17%

Drop in PC and ink sales hits the computer company. Hewlett-Packard said an additional 6,400 workers will lose their jobs in the digestion of Electronic Data Systems. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Credit card reform becomes opportunity to hammer good customers

Card issuers are likely to go after good cardholders for extra money if they can't profit as much from bad ones.

Leave it to the banks to try to turn passage of credit card reform legislation Tuesday into bad news for many cardholders.

Source: L.A. Times - Business | 20 May 2009 | 7:00 am

Kerkorian buys more MGM stock, but his stake drops

Billionaire investor Kirk Kerkorian bought 14.3 million more shares in MGM Mirage on Tuesday, but that wasn't enough to maintain his majority stake in the casino company as it issued new stock, regulatory...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Senate passes credit card reform bill in a 90-5 vote

The measure would rein in interest rate increases and take other steps to protect consumers. The House, which has passed a similar bill, is expected to approve the Senate version today. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Senate passes credit card reform bill in a 90-5 vote

The measure would rein in interest rate increases and take other steps to protect consumers. The House, which has passed a similar bill, is expected to approve the Senate version today.

In one of this year's few bipartisan success stories on Capitol Hill, the Senate on Tuesday overwhelmingly passed a landmark bill that would impose an unprecedented set of restrictions on the credit card industry's ability to raise interest rates and take other actions that have angered consumers.

Source: L.A. Times - Business | 20 May 2009 | 7:00 am

AIG investors to receive $843 million in accounting fraud case, SEC says

The distribution was approved by a federal court after the insurance giant consented to a judgment in 2006 in an SEC case alleging that it falsified finance statements from at least 2000 until 2005. ...
Source: RSS feed - channel BNPaperBusiness | 20 May 2009 | 7:00 am

Furse bows out of LSE on £250 million loss

Dame Clara Furse, the chief executive of the London Stock Exchange (LSE), has bowed out of the job by announcing a pre-tax loss of £250 million for her last financial year at the group.


Source: Latest Business News from Times Online | 20 May 2009 | 6:49 am

California voters strike down tax measures

California voters rejected a series of special ballot measures aimed at addressing a widening state budget deficit in a blow to Governor Arnold Schwarzenegger
Source: Financial Times - US homepage | 20 May 2009 | 6:42 am

NZ stocks: Mild gains on lacklustre day

The New Zealand sharemarket managed to finish a fairly lacklustre session with modest gains as the Australian market also drifted. The benchmark NZSX-50 index closed up 10.279 points, or 0.368 per cent, at 2801.083. Turnover...
Source: New Zealand Herald - Business | 20 May 2009 | 6:22 am

Currency: Dollar drifts after rise against US

The New Zealand dollar drifted during its domestic session after reaching its highest level in nearly a week on Tuesday night. By 5pm the NZ dollar was buying US60.04c from US60.18c at 8am and US60.60c overnight. It was US59.71c...
Source: New Zealand Herald - Business | 20 May 2009 | 5:21 am

SAG contract vote nears as leadership remains divided

Interim Executive Director David White will find his conflict-resolution skills tested as he campaigns for the actors pact in the face of opposition by union President Alan Rosenberg.

On the eighth floor of the Screen Actors Guild headquarters on Wilshire Boulevard, interim Executive Director David White is pacing his new office, marshaling arguments in support of the union's recently negotiated film and TV contract.

Source: L.A. Times - Business | 20 May 2009 | 5:10 am

ABC slate relies on outside studios

Eight of the 11 new shows lined up for next season are made by other companies. Warner Bros. is producing five, 20th Century Fox is providing two, and one comes from Sony Pictures and Mark Burnett.

For years, the ABC television network seeded its prime-time schedule with shows produced by the company's production studio. Walt Disney Co.'s "keep it in the family" approach aimed to ensure that if any of the shows hit it big, as "Lost" and "Desperate Housewives" have, the company would reap the financial rewards.

Source: L.A. Times - Business | 20 May 2009 | 5:09 am

Palm hopes its Pre is a handful for competition

The maker of the once-dominant Pilot hand-held device will try to regain some luster with its new smart phone.

More than a decade ago, Palm Inc. rose to prominence on the strength of its Palm Pilot, a small device that put computing power literally into customers' hands. In its stock's first day of trading nine years ago, the shares nearly tripled from their initial offering price.

Source: L.A. Times - Business | 20 May 2009 | 5:05 am

Home Depot maintains yearly outlook despite 44% rise in profit

The retailer says the increase came because it recorded fewer one-time items during the quarter than it did during the same period last year. The company still expects a 7% drop in full-year earnings.

Home Depot Inc. posted a 44% increase in its first-quarter profit Tuesday but didn't live up to the market's high expectations a day after rival Lowe's Cos. Inc. boosted its full-year outlook.

Source: L.A. Times - Business | 20 May 2009 | 5:05 am

U.S. Considers Stripping SEC of Powers in Regulatory Overhaul (Bloomberg)

Bloomberg - May 20 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.
Source: Yahoo! News: Stock Markets News | 20 May 2009 | 4:01 am

First KiwiSaver fund merger to be announced tomorrow

The first big consolidation among the KiwiSaver providers is due to be unveiled tomorrow, with the union-backed IRIS scheme poised to make an announcement. IRIS says it is going to make an announcement "regarding a consolidation...
Source: New Zealand Herald - Business | 20 May 2009 | 4:00 am

Futures Point to Higher Open for Stocks (Market Update)

News at a Glance

• Leaning Black: Stock futures point to higher open.
• Tech Trouble: Hewlett Packard to lay off 2% of staff.
• Credit Overhaul: Congress steps in on behalf of consumer.
• In Search: Microsoft to unveil new technology next week.

The Lowdown

Wall Street is leaning bullish before the opening bell.

Stocks looked to open a bit higher Wednesday, as traders brushed off disappointing guidance from a tech mainstay ahead of the latest word from the Federal Reserve. Shortly after 7:30 a.m., Dow, Nasdsaq and S&P 500 futures were trading a bit above fair value.

In tech, Hewlett Packard (HPQ) was set to stumble early, as traders frowned on a weak sales outlook and a fresh round of layoffs.

In economic news, the Fed will release the minutes from last month's meeting of the Federal Open Market Committee this afternoon. At that meeting, the group voted to hold interest rates steady at their current record low. Traders will comb the minutes for more insight into what the Fed considers the necessary conditions for a recovery.

In finance, the White House is considering a plan to install a new regulatory group to shield consumers from wayward financial products, like mortgages they cannot pay and credit cards they should not have, the Associated Press reported, citing an anonymous source. The new body risks stepping on the toes of pre-existing agencies, including the Securities and Exchange Commission and the Treasury Department.

Another new group was set to make its public debut Wednesday. The Economic Recovery Advisory Board, a diverse collection of economic gurus reporting to the White House, will hold a meeting Wednesday to discuss job creation and energy policy.

Congress stepped in as a consumer advocate on Tuesday, when the Senate passed a bill offering consumers new protection from credit card companies and the opportunity to reestablish good credit more quickly should they miss a payment. The House is expected to vote on the bill today.

World markets were fairly flat. In Asia, Japan's Nikkei finished up 0.6%, while Hong Kong's Hang Seng slipped 0.4%. In Europe, the U.K.'s FTSE dropped 0.6% in afternoon trading.

On the Nymex, crude oil prices crept up ahead of the release of last week's crude inventories data. By 7:35 a.m., oil traded up 43 cents at $60.53 a barrel.

Corporate News

• Bank of America (BAC) raised $13.5 billion in a stock sale, the firm said. BofA has issued 1.25 billion shares at an average price of $10.77 each since last Friday.
• Microsoft (MSFT) plans to draw back the curtain on a new search engine next week at the All Things D technology conference in Carlsbad, Calif., The Wall Street Journal reported, citing anonymous sources. The conference is owned by News Corp. (NWS), the same firm that owns the Journal, as well as half of SmartMoney.
• Hewlett-Packard (HPQ) will lay off an additional 2% of its workforce, about 6,400 people, the firm said. The cuts came after HP issued new guidance below analysts' estimates.

The Economy

• The crude inventories report for last week is scheduled to be released at 10:30 a.m. by the Energy Department. In the prior week, inventories were above the upper limit of the average range for this point in the year.
• The minutes of the April meeting of the Federal Open Market Committee are scheduled to be released at 2 p.m. by the Federal Reserve. In that meeting, the Fed said it would hold the federal funds rate at its record low -- between 0.00% and 0.25% -- for the foreseeable future to spur fthe rally.

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Source: SmartMoney.com | 20 May 2009 | 4:00 am

Small Venture, Big Gain: 5 Stocks in Single Digits (Screens)

Consider two stocks, identical in all respects save one: The first sells for $25 a share and the second for $3. Which should stock buyers prefer?

Versed investors will likely say price alone means nothing, but new evidence suggests the lower-price stock is likely to outperform.

Share price can be an arbitrary thing, since managers can adjust it anytime they like through stock splits and the opposite, called reverse stock splits. More telling is stock market value, or the share price times the number of shares outstanding. For example, Citigroup (C) sells for $3 and change per share and Capella Education (CPLA), more than $50 a share. But multiply the prices by the number of shares outstanding, and you find the bank is valued at more than $20 billion and the online school less than $1 billion.

If share price is truly irrelevant, though, why do companies split their stocks? Further, why are stock prices so low? A 2006 study showed that the average stock price had remained about $30 since the Great Depression. Prices of consumer goods have inflated more than tenfold over the same span. If stock prices had done likewise, most stocks would today resemble Google (GOOG), which hasn’t split in its five years of trading and sells for more than $380 a share. For some reason, managers, who understandably strive to increase their stock market values, also seem keen on keeping stock prices low.

A new study suggests why: Low-price stocks outperform high-price ones, all thing equal. Chensheng Lu, a London hedge fund manager, and Soosung Hwang, a finance professor at Korea’s Sungkyunkwan University, studied stock price and return data for 81 years ended 2006. They found that low-price stocks (less than $5 a share) outperformed high-price ones (more than $20) by 0.83 percentage points a month, or 10 percentage points a year. Results are less extreme, but perhaps more relevant, for the period after 1963, since the year before American Stock Exchange and Nasdaq stocks were added to the data set, and the number of low-price stocks rose sharply. During that period, low-price stocks beat high-price ones by 0.53 percentage points a month, or just over six percentage points a year. These results, I should note, are detailed in a paper that has been in circulation for several months, but is too new to have been submitted for publication in a peer-reviewed journal.

Lu and Hwang attribute the results to nominal price illusion, a term researchers use for how investors are fooled by low prices. In the case of my two nearly identical stocks, a 20% increase for each would tack $5 onto the $25 one but just 60 cents onto the $3 one, making the price gap larger. One seems to be outpacing the other, even if price/earnings ratios rise in tandem. Eventually, investors swap the higher-priced stock for the lower-priced one. Managers, perhaps knowing this intuitively, call for splits when prices grow unfashionably high.

Investors should use caution in trying to put this information to work in their portfolios. While low-priced stocks seem to outperform as a group, previous studies have shown they’re also at greater risk for exchange delisting. Those who delve into single digits should pay careful attention to debt levels, since low prices can be a sign of financial distress. Investors who aren’t handy with financial statements can turn to mutual funds that load up on low-price stocks. I have a strong bias against actively managed mutual funds, since studies show most perform poorly. That noted, the Fidelity Low-Priced Stock Fund (FLPSX) has returned 8.6% a year over 10 years through April, vs. 2.5% a year for the Russell 2000. That’s after yearly fund expenses of just over 0.8%.

Two more points to consider. In the aforementioned study, low-priced stocks showed especially strong performance around January. Nimble traders seeking maximum profits might want to shop toward the end of the year and sell by spring. Second, a plunge in stock prices over the past year has made low stock prices less novel. The average share price among S&P 500 companies at the end of 2006 was $51. Today it’s $31. About 11% of members trade in single digits. It’s not yet clear how this swelling of the ranks of cheap stocks will affect their relative performance.

Listed below are stocks priced in single digits which are attached to companies with at least $300 million in yearly sales, modest price/earnings ratios, manageable debt levels and decent prospects for growth.