BT chief gains £343,000 bonus despite loss

Ian Livingston, BT's chief executive, is to receive a £343,000 bonus, despite failing to meet any financial targets.


Source: Latest Business News from Times Online | 27 May 2009 | 1:18 pm

Opening Bell: 05.27.09

GM Bondholder Offer Disappoints (WSJ)
"General Motors Corp. said it won't repurchase any of the $27.2 billion of notes sought by the ailing auto maker, saying bondholder interest was far below the 90% threshold the company was seeking.

GM was seeking support for an effort to swap the debt load for a 10% stake in a restructured company that is on the brink of filing for bankruptcy."

Roubini Comments On Recession Ending (NYT)
"We are not yet at the bottom of the U.S. and the global recession," said Roubini. "The contraction is still occurring and the recession is going to be over more towards the end of the year rather than in the middle of the year."

"There is still too much optimism that a recovery is just around the corner," said Roubini, a professor at New York University's Stern School of Business and chairman of RGE Monitor, an independent economic research firm."

US Debt Downgrade Possible? (FT)
With the downgrade of British debt, the FT is looking into whether or not the United States could be next. While a downgrade is highly unlikely, recent events have proven just about anything is possible.

"Standard and Poor's decision to downgrade its outlook for British sovereign debt from "stable" to "negative" should be a wake-up call for the US Congress and administration. Let us hope they wake up.

Under President Barack Obama's budget plan, the federal debt is exploding. To be precise, it is rising - and will continue to rise - much faster than gross domestic product, a measure of America's ability to service it. The federal debt was equivalent to 41 per cent of GDP at the end of 2008; the Congressional Budget Office projects it will increase to 82 per cent of GDP in 10 years. With no change in policy, it could hit 100 per cent of GDP in just another five years."

Related: United States - Barack Obama - New York University Stern School of Business - RGE Monitor - New York University
Source: Dealbreaker | 27 May 2009 | 12:56 pm

Mortgage lending rises by 4% In April

The number of mortgages approved for new home purchases rose by four per cent between March and April, signalling signs of recovery in the housing market, the British Bankers' Association (BBA) announced today.


Source: Latest Business News from Times Online | 27 May 2009 | 12:36 pm

Santander scraps UK bank brands

Santander is to rebrand all its UK High Street brands - Abbey, Alliance & Leicester and Bradford & Bingley.
Source: BBC News | Business | World Edition | 27 May 2009 | 12:12 pm

As GM (GM) Prepares For Bankruptcy, “The Detroit Century” Draws To A Close

GM’s (GM) creditors have rejected a program that would have swapped most of the auto company’s debt for equity, effectively driving the firm into Chapter 11. The century that began with the mass production of the Model T in 1909 and ended with the worst collapse of domestic vehicle demand in history is over. It was a one [...]

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Source: 24/7 Wall Street | 27 May 2009 | 12:11 pm

GM ponders future as deal fails

General Motors' bondholders have rejected a key part of the carmaker's restructuring plan.
Source: BBC News | Business | World Edition | 27 May 2009 | 12:11 pm

A Confidence Boost for the Markets (BusinessWeek Online)

BusinessWeek Online - With gloomy headlines ranging from the geopolitical (North Korea's nuclear test) to the housing sector (further declines in the U.S. S&P/Case-Shiller home-price indexes in March), what the stock market needed on May 26 was a quick pick-me-up. Voila! A surprising jump in the Conference Board's consumer confidence survey in May helped lift U.S. equities out of the doldrums, with the Dow Jones industrial average up over 100 points in midmorning trading after opening the session in negative territory.
Source: Yahoo! News: Stock Markets News | 27 May 2009 | 12:08 pm

GM moves step closer to bankruptcy

General Motors said Wednesday it has fallen far short of the bondholder support it needed for its proposed debt-for-stock offer, virtually guaranteeing that the nation's largest automaker will be forced to file for bankruptcy court protection within the next five days.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 12:03 pm

Top Analyst Downgrades (BMO, BIG, BMR, CTXS, HMY, MRO, ODP)

These are some of the top pre-market analyst downgrades and negative research calls we have seen from Wall Street firms early this Wednesday morning: Bank of Montreal (BMO) Cut to Market Perform at CIBC. Big Lots (BIG) Cut to Neutral at JPMorgan. BioMed Realty (BMR) Cut to Neutral at UBS. Citrix Systems(CTXS) Cut to Neutral at JPMorgan. Harmony Gold (HMY) [...]

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Source: 24/7 Wall Street | 27 May 2009 | 12:03 pm

AutoZone 3Q profit climbs on brisk parts sales (AP)

AP - Automotive-parts retailer AutoZone Inc. on Wednesday said its fiscal third-quarter profit climbed 9 percent, helped by an increase in replacement-part sales as consumers held onto their cars longer.
Source: Yahoo! News: Business | 27 May 2009 | 12:03 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 | 27 May 2009 | 12:01 pm

Stocks set for mild start

U.S. stocks appeared set for a mostly higher start Wednesday, as GM confirmed that bondholders rejected the automaker's offer to swap 427 billion in debt for equity.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 11:59 am

Top Analyst Upgrades (BBBY, MAPP, ISLE, OMX, PCZ, RF, SPLS, SYMC)

These are the top pre-market analyst upgrades and positive research calls we have seen from Wall Street firms this Wednesday morning: Bed Bath & Beyond (BBBY) Started as Outperform at Oppenheimer. MAP Pharmaceuticals (MAPP) Raised to Buy at Deutsche Bank. Isle of Capri (ISLE) Raised to Outperform at oppenheimer. OfficeMax (OMX) Started as Outperform at Oppenheimer. Petro-Canada (PCZ) Raised to [...]

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Source: 24/7 Wall Street | 27 May 2009 | 11:58 am

Stock futures mixed ahead of home sales report (AP)

AP - The stock market is set to hold its gains Wednesday as investors anticipate a small improvement in existing home sales.

Source: Yahoo! News: Stock Markets News | 27 May 2009 | 11:56 am

Opel bidders pressed to improve offers before mtg (Reuters)

Reuters - Bidders for German carmaker Opel are being pressed to make last-minute changes to their offers ahead of a meeting on Wednesday that could narrow the field of potential investors in the General Motors unit.

Source: Yahoo! News: Business | 27 May 2009 | 11:55 am

EU outlines financial regulatory overhaul

Legislation to overhaul Europe's patchy system for supervising banks and insurers, and introduce a new system to help warn against future financial crises will be put forward in the early autumn, top EU officials said
Source: Financial Times - US homepage | 27 May 2009 | 11:55 am

Staples' net sags 33%, hurt by durable-goods sales

Staples’ first-quarter profit declines 33% as rising job losses and the recession led to cutbacks in corporate and consumer demand for durable items, financial results reported by the No. 1 U.S. office-supplies chain show.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 11:53 am

Sony Pictures chief Michael Lynton: I'm no luddite about the Internet

In March an unfinished copy of 20th Century Fox's film XMen Origins: Wolverines was stolen from a film lab and uploaded to the Internet more than a month before its theatrical release.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 11:48 am

Intel sees netbook cannibalization at about 20 percent

LONDON (Reuters) - Cannibalization of laptop computer sales by lower-priced netbooks is currently about 20 percent, "less than speculation", Intel's European sales chief told Reuters on...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:47 am

Protection scheme hits Nationwide

Nationwide sees profits fall 69% and partly blames its "unfair" contribution to a savings protection scheme.
Source: BBC News | Business | World Edition | 27 May 2009 | 11:44 am

Corrections: U.S. stock index futures point mostly higher

A MarketWatch article published May 27 misstated the change overnight in the Nikkei 225 Average. The Japanese stock benchmark closed the session higher.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 11:44 am

Who's afraid of Sotomayor?

Business advocates started scrambling on Tuesday to figure out whether Supreme Court nominee Judge Sonia Sotomayor would be good or bad for companies.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 11:42 am

U.S. existing home sales expected to rise

NEW YORK (Reuters) - Sales of U.S. existing homes rose in April compared with the previous month, economists polled by Reuters forecast.
Source: Reuters: Business News | 27 May 2009 | 11:41 am

Stock futures mixed ahead of housing sales data (Reuters)

Reuters - Stock index futures pointed to a mixed to higher open on Wednesday as investors await key housing data which may bolster optimism the recession is abating.

Source: Yahoo! News: Business | 27 May 2009 | 11:40 am

Stock futures mixed ahead of housing sales data (Reuters)

Reuters - Stock index futures pointed to a mixed to higher open on Wednesday as investors await key housing data which may bolster optimism the recession is abating.

Source: Yahoo! News: Stock Markets News | 27 May 2009 | 11:40 am

Stock futures mixed ahead of housing sales data

NEW YORK (Reuters) - Stock index futures pointed to a mixed to higher open on Wednesday as investors await key housing data which may bolster optimism the recession is abating.
Source: Reuters: Business News | 27 May 2009 | 11:40 am

When Arsonists Meet Building Regulations

Source: Business Pundit | 27 May 2009 | 11:36 am

Indications: CORRECT: Stock index futures point higher

U.S. stock index futures point to a slightly higher open for Wall Street Wednesday, buoyed by rising hopes the worst of the global recession will soon be in the rearview mirror, analysts say.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 11:36 am

GM says bondholder offer fails; bankruptcy closer

General Motors Corp. says not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost certainly headed for bankruptcy protection. ...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:35 am

Opel bidders pressed to improve offers before mtg

BERLIN/WASHINGTON (Reuters) - Bidders for German carmaker Opel are being pressed to make last-minute changes to their offers ahead of a meeting on Wednesday that could narrow the field of potential investors in the General Motors unit.
Source: Reuters: Business News | 27 May 2009 | 11:34 am

Air-freight slump near bottom

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 11:32 am

UPDATE 1-Buyers Protection Group to buy 2 LandAmerica units

May 27 (Reuters) - Buyers Protection Group Inc said it agreed to buy two units of bankrupt LandAmerica Financial Group Inc for an undisclosed price.
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:31 am

PRESS DIGEST - Canada - May 27

May 27 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:27 am

Oil hits '09 high above $63 on recovery hopes

LONDON (Reuters) - Oil rose to a six-month high above $63 a barrel on Wednesday after OPEC's biggest member Saudi Arabia said the global economy had strengthened enough to cope with oil at $75-$80 a barrel.
Source: Reuters: Business News | 27 May 2009 | 11:26 am

GM bond deadline passes, bankruptcy seen near (Reuters)

Reuters - General Motors on Wednesday prepared to face the fallout from a failed debt exchange that sends the largest U.S. automaker closer to a bankruptcy filing expected by the end of the month.

Source: Yahoo! News: Business | 27 May 2009 | 11:25 am

GM bond deadline passes, bankruptcy seen near

WASHINGTON/DETROIT (Reuters) - General Motors on Wednesday prepared to face the fallout from a failed debt exchange that sends the largest U.S. automaker closer to a bankruptcy filing expected by the end of the month.
Source: Reuters: Business News | 27 May 2009 | 11:25 am

Chinese bid for Opel came too late to assess-Finmin

BERLIN, May 27 (Reuters) - A bid for carmaker Opel by China's Beijing Automotive Industry Corp (BAIC) came too late for the government to assess it in depth, German Finance Minister Peer Steinbrueck said...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:23 am

UPDATE 1-PGNiG expects Q2 net results to surpass Q1-CEO

WARSAW, May 27 (Reuters) - PGNiG , Poland's dominant gas provider, expects second-quarter net earnings to improve on the 399 million zlotys ($126.5 million) loss in the first three months thanks to a drop...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:23 am

Staples profit beats Street by penny

NEW YORK (Reuters) - Top office products retailer Staples Inc reported a higher-than-expected quarterly profit, boosted by its Corporate Express unit.
Source: Reuters: Business News | 27 May 2009 | 11:22 am

Staples profit beats Street by penny

NEW YORK (Reuters) - Top office products retailer Staples Inc reported a higher-than-expected quarterly profit, boosted by its Corporate Express unit.
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:22 am

AutoZone 3Q profit climbs on brisk parts sales

Automotive parts retailer AutoZone Inc. says its fiscal third-quarter profit rose 9 percent as consumers continued to hold onto their existing cars, boosting sales of parts. The Memphis...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:22 am

Citi, BofA may raise base pay for investment bankers: report

(Reuters) - Following a Morgan Stanley plan unveiled last week, Citigroup and Bank of America are likely to soon raise base salaries for investment bankers to compensate for limits on annual bonuses, the Wall Street Journal said, citing people familiar with the matter.
Source: Reuters: Business News | 27 May 2009 | 11:22 am

Uncertainty 'keeps borrowing low'

Uncertainty over UK householders' financial position is dictating their low levels of borrowing, say the major banks.
Source: BBC News | Business | World Edition | 27 May 2009 | 11:21 am

Royal Dutch Shell restructuring to affect 24000 jobs

The oil company has unveiled the most radical restructuring of its operations for decades in a move that will affect 24000 jobs.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 11:21 am

Sterling set for more gains as it breaks through the 1.60

Currency experts have indicated that the midterm outlook for sterling against the dollar looks positive.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 11:20 am

Staples profit falls 33 percent in 1st quarter

Staples says its profit fell 33 percent in the first quarter as higher operating expenses and one-time costs more than outweighed the benefit of a new supply chain business. The world's...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:20 am

Global stocks up, oil at 2009 high on recovery hopes (Reuters)

Reuters - World stocks rose and oil prices hit a 2009 high on Wednesday, while the yen fell after improving consumer confidence in the United States and Europe boosted expectations the global economy is starting to recover.

Source: Yahoo! News: Stock Markets News | 27 May 2009 | 11:20 am

Euro down against dollar after French data

The euro dropped against the dollar on Wednesday as economic data showed only a slight improvement in French business confidence, traders said. In London trade, the European single...
Source: RSS feed - channel BNewsBusiness | 27 May 2009 | 11:20 am

North Korea threatens South Korea militarily

North Korea threatens South Korea militarily, saying it’s no longer bound by a truce the two sides reached in 1953 to end the Korean War.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 11:15 am

U.S. mortgage applications sink 14%

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 11:12 am

Mortgage applications fell 14.2% last week: MBA

Mortgage applications filed last week fell a seasonally-adjusted 14.2% last week, compared with the week before, as rates on 30-year fixed-rate mortgages ticked up, according to the Mortgage Bankers Association’s weekly survey.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 11:07 am

Santander calls time on Abbey Alliance ? Leicester and Bradford ? Bingley names

Abbey Alliance ? Leicester and Bradford ? Bingley names will disappear from the UK high street and change to Santander.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 11:06 am

Europe Markets: Shares in Europe higher for third session

European shares rise for a third session, with banks climbing as data continue to give investors hope that the global economy could be past the worst.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 11:04 am

Voser unveils Shell shake-up

The energy group is to merge its exploration and production business with its gas and power division and oil sands unit in a sweeping reorganisation of both its upstream and downstream operations
Source: Financial Times - US homepage | 27 May 2009 | 11:01 am

Currencies: ECB remarks weigh on euro; sterling rises

The dollar makes minor gains on the euro and rises against the yen, while the British pound reclaims the $1.60 mark.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 10:44 am

Buy now? Homes are 20% cheaper

The home price slide accelerated during the first three months of 2009, according to a report issued Tuesday.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 10:41 am

U.S. recession to end soon, modest recovery seen: poll

WASHINGTON (Reuters) - The U.S. recession is set to end "soon," but continued job losses and plunging house prices point to an economic recovery that will be more moderate than those experienced in previous downturns, a survey showed.
Source: Reuters: Business News | 27 May 2009 | 10:40 am

U.S. recession to end soon, modest recovery seen: poll (Reuters)

Reuters - The U.S. recession is set to end "soon," but continued job losses and plunging house prices point to an economic recovery that will be more moderate than those experienced in previous downturns, a survey showed.
Source: Yahoo! News: Business | 27 May 2009 | 10:40 am

Saudi minister sees oil demand rising

Global oil demand is picking up, supported by higher consumption in China, driving oil prices higher, Ali Naimi, Saudi Arabia's oil minister, said ahead of Thursday's Opec meeting in Vienna
Source: Financial Times - US homepage | 27 May 2009 | 10:33 am

Hong Kong shares at 7-month high, lead broad rally

Asian stock markets finish broadly higher Wednesday, boosted by a rally on Wall Street and the Hong Kong government's latest economic stimulus measures.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 10:32 am

Nintendo Changes Course (MSFT)(SNE)

Nintendo’s strategy with its immensely popular Wii has been to market a simple game console that is easy to operate and appeal to a broad set of consumers. It has largely left the market for the “serious” game players to Microsoft (MSFT) and Sony (SNE) which build more expensive and fully-featured platforms. The recession and less expensive [...]

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Source: 24/7 Wall Street | 27 May 2009 | 10:26 am

Facebook says 'da' to Russian investor

Even before the official kickoff of the seventh annual annual "D: All Things Digital" conference, Facebook was making waves at the event: Hours after the company announced a $200 million cash infusion from Digital Sky Technologies that values the social media site at $10 billion, Digital Sky partner Alexander Tamas was making the rounds at the Four Seasons Aviara resort and talking up his latest deal.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 10:17 am

Incoming CEO Voser to restructure Shell management

Royal Dutch Shell’s incoming CEO announces a new management structure that he said would reduce the oil giant’s complexity and cut costs. The changes take effect July 1, when Peter Voser moves up to chief executive from chief financial officer.

Source: MarketWatch.com - Top Stories | 27 May 2009 | 10:15 am

3 gadgets slash energy costs by 30%

These gadgets can reduce power-bill sticker shock, this summer and beyond.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 10:14 am

The Vote That Recession Is Ending Grows

The National Association of Business Economists has just released its prediction for the direction that the economy will take between now and the end of the year. The survey polled 45 well-known experts. Nearly 75% of those who responded to the survey said that the recession will end next quarter. Not a single economist thought that [...]

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Source: 24/7 Wall Street | 27 May 2009 | 10:13 am

Saudi oil minister: Oil to hit $75

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 10:08 am

Nationwide's profits fall as FSCS levy costs £250m

Nationwide Britain's biggest building society has reported that profits fell by more than twothirds in the year to April partly because of the cost of the statutory compensation scheme.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 10:08 am

Recession's end is near

The end of the recession is in sight, according to a new survey of leading economists.
Source: Business and financial news - CNNMoney.com | 27 May 2009 | 10:07 am

Global equities climb on US consumer confidence (AFP)

AFP - World stock markets rose Wednesday on hopes of a global economic recovery, after an overnight Wall Street rally that was sparked by an unexpected surge in US consumer confidence, analysts said.

Source: Yahoo! News: Stock Markets News | 27 May 2009 | 10:05 am

Abbey Alliance ? Leicester and Bradford ? Bingley to be rebranded Santander

Abbey Alliance ? Leicester and Bradford ? Bingley are to be rebranded Santander in a move marking the end of the three historic banking brands.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 10:05 am

Shell restructuring puts 24,000 jobs at risk

Up to 24,000 jobs are at risk in Shell after the Anglo-Dutch oil group unveiled plans for a major restructuring.


Source: Latest Business News from Times Online | 27 May 2009 | 10:00 am

Consumer services 'in sharp drop'

Consumer services saw quarterly business volumes fall at the quickest rate since 2001, a CBI survey suggests.
Source: BBC News | Business | World Edition | 27 May 2009 | 9:59 am

Santander scraps historic high street banks

Santander, the Spanish banking group, today announced that it will re-name Abbey, Alliance & Leicester and Bradford & Bingley - marking the end of three of the best-known banking brands on the British high street.


Source: Latest Business News from Times Online | 27 May 2009 | 9:53 am

McDonald’s (MCD) Will Crush Starbucks (SBUX) In Europe

American management has been trained that any company can think and execute its way out of trouble. That means that there is a solution to every sales or cost problem. It is just a question of finding it and pulling the right strings to make it work. Often making the best of a bad situation is [...]

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Source: 24/7 Wall Street | 27 May 2009 | 9:50 am

Optimism May Be Based On Hope, But Hope Does Not Fuel A Recovery

Economists and stock holders were overjoyed by numbers from The Conference Board showing that its confidence index rose to 54.9 in May from 40.8 in April. The fact that the number is still very low did not undercut the optimism that the announcement brought with it. Dan Greenhaus of Miller Tabak had a more measured reaction, telling MarketWatch: [...]

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Source: 24/7 Wall Street | 27 May 2009 | 9:37 am

Sterling hits $1.60 versus dollar

Sterling rose above $1.60 for the first time in nearly seven months after Britain's service sector companies revealed improving sentiment, while mortgage approvals crept higher
Source: Financial Times - US homepage | 27 May 2009 | 9:35 am

BT cancels pays rises cuts most bonuses

The telecoms company has cancelled all pay rises and cut the majority of its bonuses following two profit warnings at its Global Services arm.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 9:32 am

Housing Is Not Just Bad, It’s Getting Worse

The market’s reaction to the S&P Case Shiller data showing the home prices dropped almost 19% in March was that the data is old, so there is no point in giving it much attention. The market seemed to shrug it off by posting large gains. But, the numbers from March are like canned vegetables. It takes [...]

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Source: 24/7 Wall Street | 27 May 2009 | 9:14 am

N Korea raises tensions after nuclear test

North Korea threatened to attack South Korea if it intercepted any of the communist nation's ships as part of an anti-proliferation initiative, further raising tensions on the peninsula after a nuclear warhead test on Monday
Source: Financial Times - US homepage | 27 May 2009 | 9:14 am

Pound at $1.60 on confidence boost$

UK shares stayed in positive territory in mid-morning trading as sterling strengthened against the dollar to hit a seven-month high of $1.60.$


Source: Latest Business News from Times Online | 27 May 2009 | 9:03 am

Vauxhall: the bidders and what it means for the UK

The German government is meeting to choose its preferred bidder for General Motors Europe with fears rising of job cuts at UK subsidiary Vauxhall.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 9:00 am

U.S. existing home sales expected to rise (Reuters)

Reuters - Sales of U.S. existing homes rose in April compared with the previous month, economists polled by Reuters forecast.

Source: Yahoo! News: Business | 27 May 2009 | 8:50 am

World stocks up after US consumer confidence jumps (AP)

AP - World stock markets shot higher Wednesday after a report showing Americans more optimistic about their economy strengthened hopes that the global recession would soon abate.

Source: Yahoo! News: Stock Markets News | 27 May 2009 | 8:42 am

Sterling breaks 1.60 mark for first time since November

Pound goes through 1.60 for first time in over six months as hopes the global economy may be over the worst lifts appetite for hard hit currencies.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 8:30 am

UK and Germany may fund Vauxhall and Opel

Opel, the European unit of stricken General Motors, could secure emergency funding from Germany, it emerged today, after Vauxhall, the US company's British arm, was given hope of a rescue by Lord Mandelson, the Business Secretary.


Source: Latest Business News from Times Online | 27 May 2009 | 8:27 am

Roundup: Northern Foods Jessops Topps Tiles Speedy Hire

Roundup results from Northern Foods Jessops Topps Tiles Speedy Hire.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 27 May 2009 | 8:03 am

Media Digest 5/27/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   GM (GM) is close to filing Chapter 11. Reuters:   A poll of economists says the US recession will end soon followed by modest growth. Retuers:   The mood of US consumers rose despite falling home prices. Reuters:   Microsoft (MSFT) will launch a new Zune player later this year. Reuters:   China tries to make Macau a better bet for casinos [...]

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Source: 24/7 Wall Street | 27 May 2009 | 7:59 am

Nationwide profit plunge on 'unfair' levies

Nationwide Building Society today announced a 69 per cent fall in pre-tax profits to £212 million and criticised the high cost of the Government’s scheme to guarantee savers’ funds as "illogical and unfair".


Source: Latest Business News from Times Online | 27 May 2009 | 7:46 am

Asia Markets And Europe Open 5/27/2009

Markets in Asia were higher. The Nikkei rose 1.3% to 9,437. The Hang Seng was up 4.9% to 17,629. The Shanghai Composite rose 1.7% to 2,833. At the open in Europe, the FTSE was up .4% to 4,429. The Dax was up .5% to 5,011 and the CAC 40 rose .4% to 3,281. Data from MarketWatch and Reuters. Douglas A. McIntyre Posted [...]

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Source: 24/7 Wall Street | 27 May 2009 | 7:24 am

Australian stocks: Market closes in poisitve territory

PERTH - The Australian share market closed in positive territory for the second consecutive day on Wednesday, with the industrial and materials sectors providing support but a late sell-off in Rio Tinto capping the bourse's gains. The...
Source: New Zealand Herald - Business | 27 May 2009 | 7:02 am

GM to give union stake of just 17.5%

General Motors will give the United Auto Workers union a smaller than expected 17.5 per cent equity stake as part of the beleaguered carmaker's restructuring, a person familiar with the settlement said
Source: Financial Times - US homepage | 27 May 2009 | 7:01 am

Hollywood's latest challenge: Getting foreign broadcasters to buy shows

At this year's annual TV bazaar know as L.A. Screenings, fewer media executives from abroad made the trip to L.A. to buy programming from U.S. studios -- and those that are here are spending less. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

California gas prices rise 11.3 cents

Retail gasoline prices jump more than a dime over the last week in California and nationwide as oil rises to a new high for the year. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

Hollywood's latest challenge: Getting foreign broadcasters to buy shows

At this year's annual TV bazaar know as L.A. Screenings, fewer media executives from abroad made the trip to L.A. to buy programming from U.S. studios -- and those that are here are spending less.

Hollywood's annual TV bazaar known as the L.A. Screenings, where international broadcasters descend upon Los Angeles to buy the recently announced new fall shows, is underway.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

In rural China, a bumper crop of new car owners

Beijing is offering incentives to spur vehicle sales in the countryside. Sales are so brisk that dealers often run out of stock. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

Stocks jump on surge in consumer confidence

Unexpectedly strong data spark optimism that consumer spending could support a recovery in the second half of the year. The Dow gains 196 points. But bears worry that stocks are in for a test.

Consumers are feeling somewhat better, and that's making investors feel better too. But some market watchers question how long these mutually reinforcing good moods can last.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

Facebook sells 2% stake to Russian venture capital firm

Digital Sky Technologies pays $200 million for 2% of the social network. That gives Facebook a total valuation of $10 billion, much lower than when Microsoft bought a 1.6% stake in '07. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

Europe is a downer for world economic recovery

The U.S. may be pulling out of its recession, but some European economies are still in steep decline. The financial...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

U.S. home prices fall 19.1% in first quarter

Los Angeles-area prices are down 41% from their 2006 peak. Phoenix shows the most severe decline, 53%. U.S. home...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

Stocks jump on surge in consumer confidence

Unexpectedly strong data spark optimism that consumer spending could support a recovery in the second half of the year. The Dow gains 196 points. But bears worry that stocks are in for a test. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

California toxic waste regulators target automobile recycling 'fluff'

The leftovers from car shredders have been used to cover trash at landfills, but state officials now say the practice has health risks and should be stopped. Industry officials say fluff is safe.

At a recycling plant in San Pedro and five other similar operations around California, giant shredding machines annually reduce 1.3 million junk cars, refrigerators and other appliances into fist-sized chunks of metal.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

California gas prices rise 11.3 cents

Retail gasoline prices jump more than a dime over the last week in California and nationwide as oil rises to a new high for the year.

Retail gasoline prices jumped by more than a dime over the last week in California and nationwide as oil rose to a new high for the year. But analysts had some reassuring words: Gas prices should be nearing their peak for the year, and a repeat of 2008's record run-up isn't anticipated.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

Start-ups proliferate in India

A generation of entrepreneurs springs from India's recent economic boom, quitting safe jobs and defying their families. Seed money and other venture capital are in demand.

A little more than a year ago, Rajesh Razdan quit his cushy, well-paying job with a global cellphone company here to launch a small start-up that would offer a slew of new services to cellphone users. India's recent economic boom, he said, was the perfect setting in which to become an entrepreneur.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

GM unlikely to strike crucial deal with bondholders

Holders of $27 billion in bonds have until the end of the day to swap at least $24 billion for a 10% share in GM, and all indications are that the vast majority are unwilling to accept the deal. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

Start-ups proliferate in India

A generation of entrepreneurs springs from India's recent economic boom, quitting safe jobs and defying their families. Seed money and other venture capital are in demand. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

In rural China, a bumper crop of new car owners

Beijing is offering incentives to spur vehicle sales in the countryside. Sales are so brisk that dealers often run out of stock.

Like everybody else in his farming village, Zhan Changchun used to get around on a bicycle. This month, the 29-year-old walked into a local dealership, pulled out $7,300 in cash from his leather satchel and drove away with the family's first car: a seven-seat micro-minivan that's jointly produced by China's Wuling and General Motors.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

Europe is a downer for world economic recovery

The U.S. may be pulling out of its recession, but some European economies are still in steep decline.

The financial crisis in the United States tipped the world into a global recession, but the biggest obstacle to a full-scale recovery may now lie on the other side of the Atlantic -- in Europe.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

Twin office buildings on L.A.'s Westside sell for $44 million

The San Vicente Boulevard offices sold for about $220 a square foot, according to the seller's broker. The transaction could help to establish the bottom of the local commercial real estate market. ...
Source: RSS feed - channel BNPaperBusiness | 27 May 2009 | 7:00 am

Canada's healthcare saved her; Ours won't cover her

San Marcos resident Maggie Yount wasn't surprised when the letter from insurance giant Anthem Blue Cross arrived the other day. Yet she couldn't help but be frustrated.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

GM unlikely to strike crucial deal with bondholders

Holders of $27 billion in bonds have until the end of the day to swap at least $24 billion for a 10% share in GM, and all indications are that the vast majority are unwilling to accept the deal.

Inching ever closer toward bankruptcy, General Motors Corp. appeared late Tuesday to have come up short in a bid to slash 90% of its debt even as it zeroed in on new concessions from its labor union.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

Many modified mortgages will default again, Fitch Ratings projects

Most nontraditional home loans -- especially subprime mortgages -- may become delinquent within a year anyway, study says.

Modifying nontraditional mortgages will succeed for many people, but most such modifications will end up in default within a year, a major ratings company predicts.

Source: L.A. Times - Business | 27 May 2009 | 7:00 am

NZ stocks: F&P leads market rise

Investors waited a long time for news from Fisher & Paykel Appliances and today rewarded it for delivering the goods. Appliances' shares rose 37c, or 56.06 per cent, to 103 and brokers said the huge volume traded indicated institutions...
Source: New Zealand Herald - Business | 27 May 2009 | 6:43 am

Surprise trade surplus for Japan

Japan's export slump eases in April, leading to an unexpected trade surplus for the world's second largest economy.
Source: BBC News | Business | World Edition | 27 May 2009 | 6:05 am

Currency: Dollar retreats from seven-month high

The New Zealand dollar hit a new seven-month high around US62.60c after data showed an improvement in US consumer confidence but it then retreated on news of a lower Fonterra payout forecast. The NZ dollar briefly dropped under...
Source: New Zealand Herald - Business | 27 May 2009 | 5:40 am

Restructuring firm GLC to put money where its mouth is

NEW YORK (Reuters) - Global Leveraged Capital, a private investment firm, said on Wednesday it is launching a new restructuring advisory group that will bring a different approach to fundraising at a time when struggling companies have little access to the credit markets.
Source: Reuters: Business News | 27 May 2009 | 5:30 am

Fonterra's dairy payout down to $4.55

Low international dairy prices and the exchange rate have pushed Fonterra to forecast a reduced payout next season of $4.55 per kilo of milksolids. This season it is due to pay out $5.20 a kg. Fonterra farmers received a record...
Source: New Zealand Herald - Business | 27 May 2009 | 4:45 am

F&P shares soar 50pc on news of Chinese investment

Fisher and Paykel Appliances has just revealed a $189 million equity raising, with Chinese company Haier set to take a 20 per cent stake in the troubled whiteware maker. Shares in the company have leapt 34 cents, or 50 percent,...
Source: New Zealand Herald - Business | 27 May 2009 | 4:00 am

Bargains in Re-Emerging Markets

As the U.S. struggles to reverse the economic slide, some emerging markets are ahead of the game. The International Monetary Fund projects that while the world’s advanced economies will contract this year, emerging economies will expand by as much as 2.5 percent, and some countries will grow a lot faster. Even better news: Some pros are finding they don’t have to pay a lot to own profitable foreign stocks. The valuations on foreign stocks have become “very, very attractive,” says Uri Landesman, chief equity strategist for asset manager ING Investment Management Americas.

It was only two years ago that investors plowed more than $16 billion into emerging-market mutual funds, trying to find the next big Chinese Internet start-up or Russian coal mine. Unfortunately, like many investing trends, a lot of people piled into emerging-market stocks just as they peaked. Growth did slow around the world, and the stocks tanked. Even with this spring’s market rally, emerging-market stocks, as a group, have lost more than 40 percent since October 2007.

However, many of these nations are not mired in the housing market disasters that plague wealthier countries, and their banking systems are healthier as a consequence. Meanwhile, millions of people in these nations are moving into their middle class. The fortunes of these countries aren’t completely beholden to the health of the U.S. economy, either. China’s economy, for example, is expected to grow at least 5 percent in 2009.
For decades, stocks in China, Chile and other emerging nations traded at a significant discount to their American counterparts. By mid-2007, some were trading at a premium. The market wipeout brought emerging-market valuations closer to their normal discount. Of course, that return to normal cost some investors a lot of money, but the lower prices could give new investors a chance to buy into growing nations at a more reasonable price.
Here are five picks—all of which are listed on U.S. stock exchanges.

China Mobile

More than 160 million mobile phones were purchased in China in 2008, and analysts expect that number to grow another 5 percent this year. That bodes well for Hong Kong-based China Mobile, which has almost 75 percent market share of mobile-phone service in China. It has 470 million subscribers—a throng 50 percent larger than the entire U.S. population. Amazingly, analysts estimate there are still several hundred million Chinese who don’t yet have a mobile phone but eventually could. In the short term, if cash-strapped consumers are forced to choose between a landline and a mobile phone, they usually opt to go wireless, says Phil Kendall, director of the global wireless practice at market research firm Strategy Analytics.

The Chinese government restructured the country’s phone industry last year, allowing its biggest landline company, China Telecom, to join a wireless market formerly occupied by just China Mobile (CHL) and China Unicom. But even with the competition, China Mobile’s dominant market position allows the company to negotiate favorable rates with vendors. In 2007 the company launched its own instant-messaging system for its phones, allowing it to keep more revenue than if it used a system made by Microsoft or another firm. 

China Mobile’s stock trades at about 11 times 2010’s expected profits, well below its 10-year average price/earnings ratio of more than 24. China Mobile has said the sluggish economy and increased competition will temper its growth this year, but it will still grow. Many analysts remain confident the company will continue to increase revenue and profits steadily over the next several years, global recession or not. In the meantime, the stock has a 3.9 percent dividend yield, so investors are paid to wait for the economy to improve.

HDFC Bank 

Many of the senior executives of Mumbai-based HDFC Bank (HDB) are native Indians who worked for Citibank and other Western banks outside India. But when they opened their bank in 1995, when there were very few private banks in India, they came home to serve Indian customers. As banks worldwide loaded their balance sheets with exotic, risky mortgages, HDFC stuck with serving India’s burgeoning middle class. About 70 percent of HDFC’s revenue still comes from plain old retail banking, like issuing credit cards and loaning money to small businesses. That has kept it from having to take write-downs that burdened many other banks, says Ferrill Roll, portfolio manager for Harding Loevner, which owns HDFC shares. 

HDFC’s toughest competition is from state-owned banks. While HDFC branches offer more efficient service, according to analysts, state-run banks reach much more of India’s 1.1 billion population. In India, government banks carry the perception of increased safety, and consumers worldwide find it annoying to switch banks.

Despite these challenges, HDFC is well positioned to attract new customers. Over the next two decades, the country’s middle class will grow from about 5 percent of the population to more than 40 percent, creating the world’s fifth-largest consumer market, according to McKinsey & Co. Assuming HDFC keeps up its superior customer service, it stands to capture a large share of this new market.

HDFC shares have rallied sharply in recent weeks, so investors might want to wait for a pullback before buying. With a P/E ratio of 21 times next year’s estimated earnings of $590 million, HDFC is not the cheapest bank stock. But analysts expect the bank to increase profits 25 percent in its fiscal 2010 (which started in April) and another 26 percent in fiscal 2011. “It’s one of the best-managed banks in the world,” says Cabot Money Management’s Lutts, who also owns the stock.

Vale 

The booming economies of China, India and other emerging nations gave mining firm Vale (VALE) years of spectacular profit and revenue growth, solidifying its position as one of Brazil’s largest companies and the world’s largest producer of iron ore. Vale’s main competitive advantage over rivals BHP Billiton of Australia and English firm Rio Tinto is its top-quality, plentiful iron ore deposits, says Tony Robson, cohead of mining research at BMO Capital Markets. China is the biggest market for Vale’s iron ore, accounting for more than 17 percent of the company’s revenue. China’s steel production (iron ore is a primary component of steel) is expected to decline only slightly this year, thanks to the nation’s quick implementation of an infrastructure-focused economic stimulus package, says Jorge Beristain, head of Americas metals and mining research for Deutsche Bank Securities. Vale has expanded its client base in China, adding small and medium-size steel mills to compensate for the reduced demand from the larger mills. Vale CEO Roger Agnelli has said he expects iron ore exports to China to hold steady for the rest of 2009.

Still, the global downturn has forced the Rio de Janeiro–based firm to scale back projects and cancel some others, and the company recently cut its capital spending plans for 200 to $9 billion from $14 billion. Investors have pounded down Vale’s shares over the past year as the price of iron ore has tumbled. Longer term, however, many analysts are confident that Vale will benefit from an economic recovery worldwide. In the meantime, the stock trades at 13 times this year’s expected profits of $8.5 billion.

SQM 

It certainly helps any company to have a corner on the market. Half the customers who buy specialty fertilizer from Chile’s Sociedad Química y Minera de Chile (SQM) can’t easily substitute anything else for the product, says Brian Chase, head of Southern Cone and Andean Equity Research and Strategy for J.P. Morgan. Crops such as tobacco, wine grapes and blueberries need special fertilizers that only SQM can provide in the region.

Much of SQM’s competitive advantage comes from its access to the Atacama Salt desert in Chile, land rich with nitrates, iodine, potash and lithium, all useful in fertilizer production. Besides having a monopoly on fertilizer in Chile, SQM also claims a 30 percent share of the world’s market for lithium (used in hybrid-car batteries) and 33 percent market share of iodine (used in X-ray dye and LCD televisions). Asia accounted for 15 percent of SQM’s $1.8 billion in revenue last year, and Chase expects that share to rise as China increases its fertilizer imports to help feed its people.

SQM is not immune to the global downturn, of course. Many fertilizer stocks, including SQM’s, fell dramatically in the second half of 2008 as fertilizer prices dropped. Yet demand for the company’s all-organic fertilizer should continue to grow. Farmers need to use organic fertilizer to have their fruits and vegetables certified as organic by the U.S. Department of Agriculture and similar government bodies in other countries. Demand for high-end fertilizer might actually increase in an economic slowdown, as people eat at home more and seek out high-quality ingredients, says Jim O’Leary, manager of the Touchstone International fund.

Analysts predict a modest bump in SQM’s earnings this year over last. In 2008, SQM posted earnings of $501 million, a 179 percent increase over 2007 earnings. Don’t expect such a monster gain this year, but analysts still predict a 14 percent gain in profits. The stock trades at about 22 times estimated earnings of $627 million, about its 10-year average P/E.

CNOOC 

As the global economy slowed and the price of oil tanked over the past year, oil companies around the world pulled back on drilling for crude. But that’s not the case with China National Offshore Oil Corp., the giant firm that brings up oil from, you guessed it, the ocean waters off the coast of China. The firm, commonly known as CNOOC (pronounced see-nook) is increasing its capital spending by 19 percent in 2009, to $6.8 billion. The company can sell anything it brings up from the ocean floor. In fact, Hong Kong–based CNOOC (CEO) sells oil to its major Chinese rivals because the other two can’t produce enough on their own. 

CNOOC is majority-owned by the Chinese government. It teams up with major oil companies that have the expertise to build and operate offshore drilling platforms. When they find oil, CNOOC shares in the profits. When they don’t, the foreign companies bear all the costs.

Don’t expect its profits to be even close to the $6.4 billion in made in 2008, however, because the price of oil has fallen to around $60 from its $147 peak last July. CNOOC has no refining business, so its profits are tied almost exclusively to the price of crude. Still, it cost the company, on average, only about $20 to bring up a barrel of oil from the sea in 2008, Xiao Zongwei, CNOOC’s general manager of investor relations, told SmartMoney. So even if the price of oil resumes its descent, CNOOC should yield fatter profit margins relative to other oil companies, says Steve Cao, comanager of the AIM Developing Markets fund, which also owns the stock.

At nearly 16 times this year’s lower profits, CNOOC is not a steal. But some analysts feel that its growth prospects over the long term should command a premium. China’s fuel needs will only rise as the country’s growing middle class hits the road in its new cars, analysts say.

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 | 27 May 2009 | 4:00 am

Stock Futures Point to Higher Open (Market Update)

News at a Glance

• Futures Climb: Major indexes look to open higher.
• Energy Benchmark: Oil futures top $63 a barrel once more.
• Money Upfront: Citi and BofA to expand base pay for iBankers.
• End in Sight: Survey says 90% see recession's end in '09.

The Lowdown

Wall Street is still glowing Wednesday.

A day after a staggering rally lifted each of the major indexes by more than 2.0%, stocks looked to open sharply higher as traders awaited an update on the housing sector. Shortly before 6:30 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

Still, today is all about housing, and traders haven't responded positively to recent data. Yesterday's disappointing reading of the Case-Shiller Home Price Index left the market in a slump until a surprisingly strong consumer confidence report helped lift the major indexes from their doldrums. The question is whether that data was indicative of a housing market that has yet to find a bottom or if it represented an outlier in a larger trend toward market stabilization.

In other economic news, 90% of survey respondants said they expect the recession to end this year, the Assocated Press reported. The National Association of Business Economics said about 9 out of every 10 economists is of the same mind as Fed Chairman Ben Bernanke.

World markets were broadly higher on residual optimism after Tuesday's rally. In Asia, Japan's Nikkei picked up 1.4%, while Hong Kong's Hang Seng jumped 5.3%. In Europe, the major indexes of London, Frankfurt and Paris each advanced in midday trading.

In energy, crude prices continued to rise ahead of the session. By 6:16 a.m., crude traded up 59 cents at $63.04 a barrel.

Corporate News

• General Motors (GM) took another step closer to filing for bankruptcy today. The firm could have avoided a filing if its bondholders had agreed to trade their $27 billion in unsecured debt for a 10% stake in the reorganized company. Few bondholders appeared willing to make the leap of faith, leaving the firm too low on cash to survive without government intervention.
• Citigroup (C) and Bank of America (BAC) are expected to boost the base pay for investment bankers to offset new limitations on bonuses, The Wall Street Journal reported, citing anonymous sources. The plan comes about a week after Morgan Stanley (MS) broke out a similar idea for the sake of retention. Goldman Sachs (GS) and JPMorgan Chase (JPM) said they are not considering a similar plan.
• Microsoft (MSFT) unveiled the latest version of its Zune media player. The device, which is intended to compete with the Apple (AAPL) iPod, will include a web browser and an HD radio tuner, which allows listeners to play higher quality broadcasts than those on conventional radio.

The Economy

• The April reading of the annual rate of existing home sales is scheduled to be released at 10 a.m. by the National Association of Realtors. In March, the annual rate stood at 4.57 million sales. For April, economists expect the rate to have risen to 4.66 million sales a year.
• 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 remained above the upper limit of the average range for this point in the year.

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

Source: SmartMoney.com | 27 May 2009 | 4:00 am

5 Topics for Pros Who Handle Your Money (On the Street)

Morningstar (MORN), the Chicago-based mutual fund data company, kicks off its annual conference Wednesday. It’s one of the biggest investment confabs of the year, three days of speeches, sessions and hobnobbing with some of the investing world’s top managers and financial advisors. But this year’s conference isn’t likely to be the upbeat affair of past years. The backdrop today: a brutal bear market, a shrinking global economy and worries about the Obama administration taking over everything from the auto industry to health care.

That said, the conference comes at an interesting crossroads for many investors. One need only look at unemployment figures, the housing and real estate sectors and the prospect of inflation on the horizon to know that troubled times aren’t exactly behind us. Indeed, over the last year many fund managers had their hands full just trying to convince investors to stay in the game.

However, the Dow Jones Industrial Average has increased almost 30% since bottoming out in early March. And some investors are moving billions of dollars out of money-market funds and into more aggressive offerings like emerging markets, a sign they are comfortable taking on more risk. Of course, that also raises the question if this is the true beginnings of a bull market or just a classic bear market rally.

We anticipate many panel discussions and speeches debating whether the current rally actually has legs. Also, the prospects for the financial sector, the implementation of TARP and what managers are buying now will also be closely followed subjects, too. Below are five areas we think will set the tone, whether you have a front seat to this year’s gathering or are following our real-time coverage of key speeches and panel discussions and video interviews with influential investors.

The Economy

Talk about a dismal science. Officials at the Federal Reserve recently said they anticipate only a “gradual” recovery in the second half of the year — a worse forecast than just a few months ago — and its members predicted that unemployment would rise above 9% and stay there through 2010. William Strauss, an economist at the Federal Reserve Bank of Chicago, will give his take on the economy during a lunchtime speech at the Advisor User Forum Wednesday morning. His words will likely shape the debate on this subject during the main conference, too.

America’s Balance Sheet

Last week Standard & Poor’s warned the United Kingdom was at risk of losing its triple-A credit rating as the economic downturn hit that country hard. The news caused stocks here to fall and the S&P 500 to slip under the 900 level. Pimco’s Bill Gross, the influential fixed-income investor, said some of the selling was due to the specter of the U.S. facing a similar scenario because the federal government was spending so much to get the financial system back on track. It was a thought that hadn’t been spoken publicly before by such a prominent personality — and one he will probably bring up again during his keynote speech Thursday afternoon. Look for the stock market to react to his words.

Bailout Nation

The country’s big banks and Wall Street firms got us into this mess and we won’t get out without their help. That, of course, is the reason Washington has been throwing billions at the banks, along with everyone from car makers to insurance companies. But is there opportunity in all this? Some pros think so. GMO’s Jeremy Grantham, for one, who has been bearish on the markets for years, recently wrote that stocks and other securities are trading at attractive prices. (Read our story on why he had a change of heart here.) He’ll give his forecast for the next seven years at a session Thursday morning. Bond managers will be talking TARP at a session on Friday and we anticipate financial stocks will be hotly debated the entire time.

The New Regulatory Regime

For the first time since the early 1990s, it looks like Washington is serious about health-care reform; Obama has made it a linchpin of his administration and recently won a pledge by the industry to cut costs by some $2 trillion over the next decade. So far it’s only a pledge, of course. But changes of this magnitute are expected to create big winners and losers, from drug companies to hospitals, insurers and tech firms. Expect it to be a hot topic at Thursday’s panel discussion on value stocks, a niche where health care figures prominently.

Washington also should figure prominently at the conference for other reasons. Congress is currently looking at everything from shorting stocks to 401(k) plan fees and target date mutual funds. The uptick rule is being reconsidered and there is much discussion about the future of money-market funds. And don’t forget taxes, which are almost certain to rise.

“We are all for transparency,” says Michael Frederick, director of business development at TFS Capital, home of the TFS Market Neutral fund (TFSMX). But, he adds, some of the regulations passed last year around short selling, a key component of TFS’s strategy, “were hard to navigate.”

Bull Market or Bear Trap?

It’s the trillion-dollar question: Will the recent rally last, or will it fizzle and ultimately bring the market to new lows? Just about every fund manager will be giving his or her take. Growth managers like Eric Fischman of MFS and Glenn Fogle of American Century will discuss whether stocks are now the “deal of the century” Thursday. Foreign markets have long been pitched as a way to profit off faster-growing economies abroad. However, after a disastrous 2008 that thinking is going through an overhaul. Veteran foreign stock pickers, including Third Avenue’s Amit Wadhwaney, will make the case for investing in these markets on Friday. The conference will conclude with one of the most hotly debated sectors these days: small caps. Chuck Royce, the founder of Royce funds, and Ariel’s John Rogers, will give their insights into a niche that has shown signs of breaking out in 2009.

Ultimately, though, any sustainable rally will hinge on corporate earnings results actually meeting investor expectations. “There is trillions of dollars sitting on the sidelines and it’s making no return,” says Sean O’Hara, president of the RevenueShares ETF family. “Once some of that money starts to leak back into the market it could drive stock prices through the roof.”

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 | 27 May 2009 | 4:00 am

7 Strategies for Profiting Off the Next Downturn (On the Street)

Personally, I don’t expect much financial drama over the next year. Stocks seem only a touch expensive relative to earnings. Earnings seem normal as a share of the economy. Powerful deflationary and inflationary forces (lax consumer demand and looming money creation, respectively) are offsetting each other, and should do so until world economic growth heats up, perhaps a year from now. And the dollar seems wobbly, but no more so than currencies that compete as a store of the world’s winnings.

I could easily be wrong about any or all of these things, though. Stock prices and earnings spent several years too high, and so might now plunge to depths that are too low by the same degree. Emerging economies might grow fast enough to spur energy, food and metal inflation, even if rich countries stagnate. America might create so much money that the dollar plunges in value. For investors who fear the worst, and who wish to make protective or pessimistic investments, here’s a round-up of ones that don’t require options or futures trading, physical asset storage or the opening of foreign accounts. All are exchange-traded funds, or ETFs, which can be bought and sold like stocks in ordinary brokerage accounts.

Make Money If Stocks Plunge

The market is more likely to rise than fall on any given day. The longer you hold a broad basket of stocks, the better your chances of profiting. With inverse or bear funds, just the opposite is true. They’re meant as short-term bets on a decline in stock prices, and are unlikely to pay off as long-term holdings. That means investors needn’t agonize over slight differences in management expenses; an extra two-tenths of a percentage point per year compounds considerably over 20 years, but doesn’t mean much over one summer.

Start by choosing an index. Broad-market ones like the S&P 500 or Russell 2000 are fine for generally pessimistic strategies. There are also style indexes, if you think, say, stocks with high price/earnings ratios (growth stocks) will get hit harder than ones with low P/Es in the market’s next leg down. (That’s just what happens during most market downturns, but it hasn’t happened so far during this one.) Most of these funds are available with or without leverage. Levered bear funds try to produce double or triple the underlying indexes’ movements, but in the opposite direction.

Three warnings on leverage: First, needless to say, it multiplies risk. On Tuesday market averages jumped 2.4% to 3.5%, merely on news that consumers in a survey guessed conditions would improve in coming months. A skeptic might say that consumers are only more chipper because stocks have risen in recent weeks, and that their mood shouldn’t thus be used to predict yet more stock movements, but the point is, it doesn’t take too many perplexingly bullish days to hurt a levered bear investor. Second, levered funds are usually tuned to daily index performance, not yearly performance. Depending on market volatility, those amplified daily returns might compound to well higher or well lower than the indexes return over weeks, months or years. Third, bear funds in general aren’t great for minimizing taxes, since they’re for short-term bets, but levered bear funds especially spew out heaps of taxable gains during “good” years, because the derivative contracts that power them don’t enjoy the same tax benefits as stocks.

Have a look at some bets against stocks on this table, and then move on to inflation.