John Lewis sales up 14.2% amid online boost

Weekly sales at the John Lewis department store were up 13.3 per cent for the week to October 10 compared to the same period last year.


Source: Latest Business News from Times Online | 16 Oct 2009 | 4:44 am

Nomura dress code bans 'gay colour nail polish'

Exactly a year after Nomura made its successful lunge for Lehman Brothers, the official line in Tokyo is that the merger is running like clockwork.


Source: Latest Business News from Times Online | 16 Oct 2009 | 4:41 am

China defiant ahead of iron ore talks

China took a defiant stand ahead of annual iron ore contract price negotiations with global miners, rejecting proposals for a sharp rise in the price of the key steelmaking ingredient
Source: Financial Times - US homepage | 16 Oct 2009 | 4:39 am

Food Day praise for Brazil and China

Brazil and China are praised, and India criticised, in a new report on efforts to tackle hunger, published on UN World Food Day.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 4:30 am

Mattel posts lower profit (Reuters)

Reuters - No. 1 toy maker Mattel Inc reported a lower quarterly profit on Friday, as a weak economic environment pulled down sales of Barbie dolls and Fisher-Price toys.
Source: Yahoo! News: Business | 16 Oct 2009 | 4:28 am

Mattel 3rd-quarter earnings decline 3 percent

Toy maker Mattel says third-quarter profit declined 3 percent because of a tough economy that dampened demand for toys. Chief Executive Robert A. Eckert says revenue "continues to be...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 4:24 am

Volkswagen says 2010 will be difficult year

German carmaker Volkswagen AG posts nearly 12% rise in September sales, but warns that 2010 will be a “difficult year."

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 4:23 am

Asian markets mixed after trading in narrow range

Investors in Asian stock markets stepped to the sidelines Friday as they waited for U.S. corporate earnings, with major indexes ending mixed in a narrow range.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 4:17 am

Eurozone trade falls into deficit

The eurozone trade balance with the rest of the world slips into deficit, as exports fall by more than imports.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 4:14 am

Oil And A Double-Dip Recession

It is easy to forget how important sub-$40 oil prices were at the beginning of this year as the world dove into recession. If crude had been above $140 as it had been in July 2008, the combination of high oil prices and the credit crisis could have caused a depression almost certainly.  Gas prices [...]

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Source: 24/7 Wall St. | 16 Oct 2009 | 4:04 am

Earnings Outlook: Pfizer, Merck may feel pressure from generics

Pfizer Inc. and Merck & Co. are both expected to show the effects of increased competition from generic drugs when the two pharmaceutical bellwethers roll out their third-quarter earnings reports next week.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 4:00 am

Earnings Outlook: AT&T still riding high with iPhone

Despite a sharp U.S. recession and further erosion in AT&T Inc.'s traditional telephone business, the company is expected to reported strong growth in wireless customers and stable earnings when quarterly results are released next week.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 4:00 am

A whopping .04% return on savings

Question: My wife and I keep $20,000 in a passbook savings account as an emergency reserve. What's driving me crazy is that we're getting only 60 cents a month in interest. I like the security of the account and the immediate access, but 60 cents a month on 20 grand???? How can I do better? --Dale F., Waldorf, Maryland
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 3:59 am

IBM profit grows despite sales drop

International Business Machines posted third-quarter results on Thursday that met analysts' forecasts, then raised its expectations for the rest of the year, citing improving sales trends during the quarter.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 3:51 am

Wasserstein And The CEO Health Disclosure Issue (NYSE:LAZ)

Bruce Wasserstein, the CEO of Lazard (NYSE:LAZ) and by far its most important employee, became ill over the weekend, with heart problems. He died on Monday night. The company described his condition as serious but stable when it released news about his illness on Sunday. Wasserstein was stricken while travelling in his private car according to WSJ.com. He [...]

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Source: 24/7 Wall St. | 16 Oct 2009 | 3:51 am

National Express shares slump as buyout collapses

Shares in National Express tumble as much as 34% Friday after a consortium led by CVC Capital Partners scraps a 765 million pound ($1.25 billion) bid for the bus and rail operator.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 3:51 am

European stocks buoyed as Dow keeps above 10,000

European stock markets rose modestly Friday after another strong finish on Wall Street, with more U.S. earnings reports expected to drive market sentiment later in the day. In Europe,...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:50 am

European stocks buoyed as Dow keeps above 10,000 (AP)

AP - European stock markets rose modestly Friday after another strong finish on Wall Street, with more U.S. earnings reports expected to drive market sentiment later in the day.

Source: Yahoo! News: Stock Markets News | 16 Oct 2009 | 3:50 am

CLSA says China fund to help overcome govt hurdles

SHANGHAI, Oct 16 (Reuters) - Asia-focused brokerage CLSA said on Friday that its plans to launch a 10 billion yuan ($1.46 billion) local-currency fund in China would enable the Hong Kong-based company...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:40 am

CLSA says China fund to help overcome govt hurdles

SHANGHAI, Oct 16 (Reuters) - Asia-focused brokerage CLSA said on Friday that its plans to launch a 10 billion yuan ($1.46 billion) local-currency fund in China would enable the Hong Kong-based company...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:40 am

Oil hovers above $77 as week-long rally pauses

Oil prices hovered above $77 a barrel Friday in Asia, pausing a week-long rally amid an unexpected drop in U.S. gasoline inventories. Benchmark crude for November delivery rose as much...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:31 am

Indications: U.S. stock futures edge up after Google results

U.S. stock futures edge higher Friday as Google helps maintain the optimism over earnings season.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 3:31 am

Deals of the day -- mergers and acquisitions

Oct 16 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 0930 GMT on Friday.
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:30 am

UPDATE 2-Sharp sees tight LCD panel supply through mid-2010

* Comments follow startup of Sharp's flagship LCD plant
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:26 am

24/7 Wall St. Interview With Jason DeSena Trennert

24/7 Wall St. is conducting a series of interviews with prominent economist and market strategist. Jason DeSena Trennert is the Managing Partner, Chief Investment Strategist at Strategas Research Partners LLP. The conversation: 24/7 Wall St.:  The bias right now in the press when they report what’s going on with the economy is to try to figure out [...]

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Source: 24/7 Wall St. | 16 Oct 2009 | 3:24 am

Vauxhall workers back union deal

Workers at the Vauxhall car plant in Ellesmere Port vote to accept a deal agreed between unions and proposed new owner, Magna.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 3:19 am

Getinge Q3 pretax tops forecast

STOCKHOLM, Oct 16 (Reuters) - Medical technology group Getinge posted a bigger-than-expected rise in third-quarter pretax profit on Friday and stood by its forecast for full-year earnings to rise about...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:18 am

Google sees record $1.6bn profit

Google reports its highest quarterly profit to date, with its chief executive saying the worst of the recession is over.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 3:14 am

Steal your own identity ... before hackers do

Todd Feinman spent more than a decade breaking into the computer systems of Fortune 100 companies. Not for his own nefarious purposes, though. The former director at PricewaterhouseCoopers was paid to test corporate security systems. He succeeded in breaching them 80% of the time.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 3:13 am

Royal Mail 'strike plan' revealed

The BBC has obtained what appears to be a Royal Mail document showing the firm is set for a battle with union members.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 3:12 am

UPDATE 3-Cytos anti-smoking vaccine flops; shares drop

(Rewrites, adds more comment, detail and updated shares)
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:08 am

National Express weighs on transport stocks

Transport stocks were under pressure in London on Friday after the demise of a Spanish-led consortium's bid for National Express. The withdrawal of the 765m offer for National Express sent shares in the...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 3:07 am

Wal-Mart (WMT) Joins E-Book Wars

The competition in the e-reader and e-book industries gets more brutal by the day. Amazon (NASDAQ:AMZN) is the e-reader leader because of the success of its Kindle. Other companies including Sony (NYSE:SNE) have come out with products of their own and price cuts have already begun, presumably as a tactic to gain market share. The e-book [...]

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Source: 24/7 Wall St. | 16 Oct 2009 | 3:07 am

Eni, Repsol confirm record Venezuela gas discovery

The Italian oil company Eni and Spain's Repsol on Friday said tests have confirmed that their natural gas discovery offshore Venezuela is the largest ever in the country. Repsol first...
Source: RSS feed - channel BNewsBusiness | 16 Oct 2009 | 3:04 am

Wall St. set for mild start

U.S. stock futures rose Friday, supported by solid results from Google, although gains were slight as investors awaited more earnings reports.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 3:03 am

Lloyds off-loads Halifax estate agency for £1

Lloyds Banking Group has sold its loss-making Halifax estate agency business for just £1 to LSL Property Services.


Source: Latest Business News from Times Online | 16 Oct 2009 | 2:57 am

Virgin Mobile expands in France

Carphone Warehouse has expanded in France after its joint venture Virgin Mobile France agreed to buy the local operations of Sweden's Tele2 for 56m ($84m, SKr575m).Tele2 France had more than 429,000 customers...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 2:51 am

Commodities Corner: A perfect storm's brewing to cool petroleum demand

A perfect storm of influences is having a lasting effect on the world’s petroleum markets and there’s nothing on the horizon to sway its path.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 2:50 am

China defiant ahead of iron ore talks

China on Friday took a defiant stand ahead of annual iron ore contract price negotiations with global miners, rejecting proposals for a sharp rise in the price of the key steelmaking ingredient and insisting...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 2:46 am

National Express plunges as bid dropped

Shares in National Express plunged more than a quarter on Friday after the Spanish-led consortium bidding for the bus and rail operator withdrew its 765m takeover offer, dealing a blow to the company's...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 2:44 am

London stocks firm at open (AFP)

AFP - London shares started the session on a firm note Friday led by banks and commodities.

Source: Yahoo! News: Stock Markets News | 16 Oct 2009 | 2:39 am

Sony Ericsson to draw on new loan facilities

Sony Ericsson reported a net loss of 164m ($244m) for the third quarter, as the mobile phone maker announced new credit facilities to strengthen its balance sheet.The joint venture between Japan's Sony...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 2:36 am

Lloyds sells Halifax estate agents for 1

Lloyds Banking Group said on Friday that it had agreed in principle to sell its loss-making Halifax Estate Agencies arm to LSL Property Services for 1.The disposal will lead to Lloyds shutting the 121...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 2:36 am

Why I Launched Here: 50 stories

We asked entrepreneurs in all 50 Best Places to Launch how their hometown treats business owners. See how the cities stack up.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 2:34 am

London Markets: Oil, gas producers lead gains for British shares

London shares climbed on Friday, with oil producers leading the advance as light sweet crude futures strengthened.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 2:32 am

Bid failure hits National Express

Shares in National Express fall dramatically after its largest shareholder withdraws a £765m takeover offer.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 2:31 am

A $6,900 home bargain in Detroit?

For a foreclosure, the house at 15461 Kentfield St. in Detroit needed surprisingly little work. The new owner, an investor from the Chicago area named Kevin Holmes, slapped on a coat of paint, pulled up the dirty carpets, and replaced the stolen water heater. The car stashed out back, he learned soon enough, belonged to a neighbor, not a thief using the three-bedroom as a makeshift chop shop.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 2:30 am

Stock futures signal gains; eyes on GE, BofA (Reuters)

Reuters - U.S. stock index futures pointed to a higher open on Wall Street on Friday, as investors awaited key earnings reports from conglomerate General Electric and Bank of America .

Source: Yahoo! News: Stock Markets News | 16 Oct 2009 | 2:25 am

Stock futures signal gains; eyes on GE, BofA (Reuters)

Reuters - U.S. stock index futures pointed to a higher open on Wall Street on Friday, as investors awaited key earnings reports from conglomerate General Electric and Bank of America .

Source: Yahoo! News: Business | 16 Oct 2009 | 2:25 am

Stock futures signal gains; eyes on GE, BofA

(Reuters) - U.S. stock index futures pointed to a higher open on Wall Street on Friday, as investors awaited key earnings reports from conglomerate General Electric and Bank of America .
Source: Reuters: Business News | 16 Oct 2009 | 2:25 am

Sony Ericsson loss widens to $245 million

Mobile handset maker Sony Ericsson says Friday that its third-quarter loss widens following a sharp drop in the number of units shipped, though the group says it’s starting to see the benefits of restructuring efforts.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 2:25 am

Sony Ericsson makes another loss

The mobile phone maker Sony Ericsson reports smaller-than-expected three-month losses.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 2:24 am

Ten killed in latest Pakistan attack

Ten people are killed in Peshawar in north-west Pakistan in the latest in a wave of deadly attacks that have swept the country in the past week, underscoring the determination of the Taliban to open a Punjab offensive
Source: Financial Times - US homepage | 16 Oct 2009 | 2:22 am

No 2009 salary for BofA chief

In the past, Bank of America Chief Executive Officer Ken Lewis has received an annual salary of $1.5 million. But this year he will get nothing.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 2:20 am

Stocks: Know when to fold 'em

After the market dealt you one bad hand after another over the past decade, you may feel relieved that your luck is finally starting to change. Stocks have shot up more than 50% since early March.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 2:16 am

ISP in file-sharing wi-fi hack

TalkTalk has been an outspoken critic of UK government piracy plans and now it sets out to prove why.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 2:13 am

Media Digest (10/16/2009) Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   Google (NASDAQ:GOOG) and IBM (NYSE:IBM) posted strong results. Reuters:   Bank of America’s (NYSE:BAC) Lewis will skip 2009 pay. Reuters:   Japan Airlines says bankruptcy is an option to solving its problems. Reuters:   Soros says US economy will drag on world growth. Reuters:   A Congressional committee approved rules for over-the-counter derivatives. Reuters:   Wasserstein’s death will result in a $186 million payment [...]

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Source: 24/7 Wall St. | 16 Oct 2009 | 2:04 am

Europe Markets: Energy firms lead third day of gains for Europe

European shares rise for the third straight session on Friday, with oil and gas firms some of the strongest performers.

Source: MarketWatch.com - Top Stories | 16 Oct 2009 | 1:58 am

Your tax dollars, Goldman's big bonuses

It's probably cold comfort, but Goldman Sachs couldn't have done it without your help.
Source: Business and financial news - CNNMoney.com | 16 Oct 2009 | 1:57 am

Bank of America boss forced to give up pay

Bank of America’s chief executive has been forced by the US Government’s “pay czar” to give up his bonus and salary for 2009 as well as forgoing $1 million ($£612,000) he has already received.


Source: Latest Business News from Times Online | 16 Oct 2009 | 1:52 am

Halifax estate agents sold for £1

Lloyds Banking Group sells its loss-making Halifax estate agency for £1 to LSL Property Services and says up to 460 jobs will go.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 1:38 am

U.S. construction to see 11 percent rise in 2010: report

(Reuters) - The U.S. construction industry should see modest gains in 2010, with the building of single-family houses, apartment buildings, highways and bridges on the rise, offsetting drops in commercial and manufacturing property, the Wall Street Journal said, citing an industry report.
Source: Reuters: Business News | 16 Oct 2009 | 1:29 am

Asia Markets And Europe Open (10/16/2009)

Markets in Asia were mixed. The Nikkei rose .2% to 10,258. The Hang Seng fell .1% to 21,988. Petro China (NYSE:PTR) was up but Sinopec (NYSE:SNP) fell. The Shanghai Composite fell 1.% to 2,977. At the open in Europe, the FTSE rose .6% to 5,250. The Dax rose .4% to 5,856. The CAC 40 was up .3% to 3,897 Data [...]

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Source: 24/7 Wall St. | 16 Oct 2009 | 1:28 am

National Express bidders walk away from takeover

Shares in National Express today plunged by 28 per cent after Spain's Cosmen family and CVC Capital Partners walked away from a takeover and the bus and coach operator said that it would press ahead with an estimated £300 million equity fundraising.


Source: Latest Business News from Times Online | 16 Oct 2009 | 1:26 am

Lloyds Banking Group sells lossmaking Halifax estate agency for £1

Lloyds Banking Group said it agreed to sell its lossmaking Halifax estate agency business to LSL Property Services for £1 following a review.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 16 Oct 2009 | 1:23 am

Nokia weighed down by networks venture

Shares in Nokia fell 11 per cent on Thursday after a 908m ($1.4bn) writedown at its struggling network joint venture pushed the world's biggest mobile phone maker to a surprise third quarter loss.The problems...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 1:01 am

Sliding dollar may be something to cheer about

It's making imports and trips to Europe more expensive, but it's also making American products and visits to the U.S. cheaper for foreigners. It might just be the tonic the economy needs.

The falling dollar is stoking fears of inflation and worries about the country's eroding power in the world. But for now it may be just the tonic that's needed to help the U.S. economy get back on its feet.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

iPhone fever probably won't spread in China

Apple will officially launch its handset here this month, but it's unlikely to spur zealotry. That's because the device has long been imported as well as pirated -- and has to vie with the OPhone.

When the iPhone was released in the United States two years ago, thousands camped outside Apple stores overnight to secure one of the prized devices. The official launch of the trendy handset in China this month isn't likely to spur the same zealotry. That's because the iPhone is already here.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

Google profit surprises Wall Street

The Internet search giant posts a 27% jump, possible proof that the online economy is clicking again.

In another sign that the economy may be coming back online, Web search giant Google Inc. surprised Wall Street with a 27% jump in third-quarter profit, as Internet advertisers spent more on ads -- and buyers spent more time clicking on them.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

Harley-Davidson plans to close Buell line and sell MV Agusta

The move comes as the motorcycle manufacturer reports an 84% decline in third-quarter earnings. Shedding its sport bike operations will enable it to focus on its core Harley brand. ...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 1:00 am

Newsletter bets geeks are attractive -- to advertisers, at least

Media veterans Peter Guber, Peter Levin and Gareb Shamus will unveil an e-mail newsletter today called GeekChicDaily. It's aimed at young guys into comics, video games, technology and genre films.

Three media veterans looking to profit from Hollywood's obsession with everything "geek" have found inspiration in a newsletter for women who love shopping.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

Safeway CEO sees good news in coffee habits

Steven Burd says sales of lattes dropped when the economy tanked, but now are reviving. How will we know when...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 1:00 am

Goldman Sachs profit tops $3 billion on strong trading and less competition

Earnings of $3.2 billion fall shy of results in the second quarter but are more than triple those of a year earlier. The $5.25-a-share profit towers over analysts' $4.18 consensus estimate.

Throughout the last year's financial crisis and this summer's roaring recovery in the markets, Goldman Sachs Group Inc. has burnished its image as Wall Street's premier firm, and its second straight quarter of blowout earnings kept the shine glowing.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

Sliding dollar may be something to cheer about

It's making imports and trips to Europe more expensive, but it's also making American products and visits to the U.S. cheaper for foreigners. It might just be the tonic the economy needs. ...
Source: RSS feed - channel BNPaperBusiness | 16 Oct 2009 | 1:00 am

Harley-Davidson plans to close Buell line and sell MV Agusta

The move comes as the motorcycle manufacturer reports an 84% decline in third-quarter earnings. Shedding its sport bike operations will enable it to focus on its core Harley brand.

Harley-Davidson Inc. is engineering its own makeover, and some shocked fans and workers aren't pleased.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

Stocks rise as energy gains offset drop in bank shares

The Dow climbs 47 points after a rise in oil prices lifts the energy sector and offsets weakness in financials.

A late surge gave stocks modest gains for the day Thursday as a jump in the price of oil lifted the energy sector and offset weakness in bank shares.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

House committee approves new rules on derivatives trading

The legislation is a key piece of Obama's plan to overhaul financial regulations. It would increase supervision and regulation of a complex trading market blamed in last year's financial crisis.

The dark and largely unregulated market of derivatives, which helped trigger the financial crisis, moved closer to federal oversight as a congressional committee voted to impose new rules on the products to try to limit the risk they can pose to the economy.

Source: L.A. Times - Business | 16 Oct 2009 | 1:00 am

Church of England investment in New York apartment venture at risk report

The Church of England's investment in a New York apartment complex known as Peter Cooper Village and Stuyvesant Town one of the most highprofile deals of the US property boom is at risk the Wall Street Journal reported.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 16 Oct 2009 | 12:58 am

JAL slumps, investors say bankruptcy an option

TOKYO (Reuters) - Japan Airlines Corp shares slid 12 percent to a record low on Friday as investors suggested bankruptcy may be an option for Asia's biggest airline by revenue, even as the government again pledged to support the troubled carrier.
Source: Reuters: Business News | 16 Oct 2009 | 12:47 am

National Express to go it alone as CVC and Cosmen family drop £765m bid

The rail and bus operator is to tap investors for cash as CVC and Cosmen family ditch £765m bid.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 16 Oct 2009 | 12:38 am

Wrightson pushes NZ market higher

The sharemarket ended a busy day higher with plenty of corporate activity for investors to digest and the prospect of an initial public offering on the horizon.Shares in rural services firm PGG Wrightson rose as high as 90c but...
Source: nzherald.co.nz - Business | 16 Oct 2009 | 12:28 am

The return of the bonus bonanza for bankers

A year ago banks were in meltdown. How can Goldman Sachs and JP Morgan now have billions for bonuses? Edmund Conway explains.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 16 Oct 2009 | 12:21 am

Tycoon given humanitarian honour

Stagecoach tycoon Ann Gloag is given a top humanitarian award at the United Nations in New York.
Source: BBC News | Business | World Edition | 16 Oct 2009 | 12:14 am

Mortgages: should you opt for a fixed rate?

HSBC has calculated whether it is worthwhile opting for a fixedrate mortgage.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 15 Oct 2009 | 11:59 pm

Dollar nudges US75c, ease back

The New Zealand dollar pushed right up against the US75c figure today on ongoing demand for high yielding currencies then eased back.A pattern evident this week of the NZ dollar rising in its domestic session after slipping overnight...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 11:29 pm

Obama wins first financial reform victory in months (Reuters)

Reuters - The Obama administration scored its first financial regulation reform victory in months on Thursday when a U.S. congressional committee approved new rules for over-the-counter derivatives.
Source: Yahoo! News: Business | 15 Oct 2009 | 11:01 pm

Obama wins first financial reform victory in months

WASHINGTON (Reuters) - The Obama administration scored its first financial regulation reform victory in months on Thursday when a U.S. congressional committee approved new rules for over-the-counter derivatives.
Source: Reuters: Business News | 15 Oct 2009 | 11:01 pm

Google's optimistic note shouldn't give way to spending splurge

Google should think twice about an investment binge.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 15 Oct 2009 | 11:01 pm

October 16, 2008 (Thursday): Hungary Can Bank on Some Euros; Oil Gets Cheaper

A Lot of Euros for Hungary

Hungary and the European Central Bank today announced that the Eastern European country could borrow up to 5 billion euros as markets there remain weak, public debt high, and exports slow. The loan will help promote liquidity in the rest of the European market, the bank said, because borrowers in Hungary have taken out loans in other currencies to avoid the high interest rate of the Hungarian currency, the forint. Hungary is hoping to avoid an Iceland-like calamity in the financial system. (For more on this news, click here and here.)

Fox Beckons Beck

Fox announces it’s hiring Glenn Beck away from CNN to host a talk show on Fox News beginning in the spring. Beck was previously the host of “Glenn Beck,” a talk show on CNN Headline News that saw big success with conservative viewers. Roger Ailes, Fox News’s head, cites Beck’s “thought-provoking commentary” in the press release announcing his hiring. (For more on this news, click here and here.)

Silver Lining

For the first time in over a year, oil prices fall below $70 a barrel today. The price has been dropping as market players expect the economic meltdown to hamper global energy demand. At $69.85 a barrel, the closing price is the lowest since Aug. 23, 2007, when the barrel price was $69.83. In response, OPEC calls for a meeting to encourage price stability. Consumers, meanwhile, can look for lower energy bills this winter and more affordable gas. (For more on this news, click here, here and here.)

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Source: SmartMoney.com | 15 Oct 2009 | 10:00 pm

Put Off Retirement? No Way!

Every career has its share of days you never forget. There are the early memories, such as getting that first paycheck, and milestones like scoring the big promotion or the morning you finally moved into the corner office. But for many people, there's one special day that stands head and shoulders above the rest: the last.

Whether it's marked by a year, an age or even a specific date, the promise of that first day of retirement is the beacon that guides people through the often daunting process of planning for their golden years. But now, with would-be retirees still dusting themselves off from the punch of last year's market crash and today's slow-to-recover economy, many are finding that their beacon has disappeared-or at least relocated. In fact, a recent study by gerontology research and consulting group Age Wave found boomers reporting that their retirement will need to be postponed an average of 3.6 years. And with retirement accounts losing $3.7 trillion-42 percent of their value-during the crash, the idea that the average American could still expect an on-time arrival at the next phase of their life seems little more than fantasy.

But there are no delays in sight for Ira Marks. Yes, he watched his portfolio drop 30 percent from peak to trough in the crash. And yes, the housing downturn has hammered his commercial real estate brokerage. But Marks still says he's on track to retire in less than five years-a bit earlier than originally planned, actually. His strategy for staying on schedule is simple: Change everything else. In the past several months, the Floridian from Vero Beach has refinanced his home at a lower rate, cut back on spending and even started taking mediation classes, thinking he might dabble in the work to bring in extra income. He has also avoided the temptation to get more conservative with his investments, hoping the other tweaks will give his nest egg time to recover. "What goes down must come up," says Marks.

Although postponing retirement is a powerful tool (an additional year of work can boost annual investment income by about 7 percent, according to T. Rowe Price Associates, it's far from the only option for would-be retirees hoping to get their plans back on track. Clamping down on spending is one popular save-the-date strategy, which can include everything from eliminating luxuries like posh vacations and new cars to a wholesale downsizing that can land retirees in cheaper states-or even cheaper countries. Others are revising their plans to include a few hours of work, or adjusting their investing strategy to give themselves the best chances of recouping their losses down the road. And while no one thinks these changes will be easy, some experts say that they could ultimately lead to a happier, more fulfilled version of retirement. "Think of it as course correction," says Ken Dychtwald, founder and CEO of Age Wave.

So don't erase that magic date from your calendar just yet. To find the best ways to adjust your retirement strategy, we polled a range of planners and experts, and consulted with retirees and soon-to-bes who are out there living their postcrash contingency plans. Below, four paths for keeping your retirement time line in line.

Invest Boldly

Bill Rideout has never shied away from risk. The Salt Lake City attorney has taught Navy jet pilots, lived in nine states and launched a new career when he was 58. And when it came to his crash-weakened portfolio, his attitude was no different: full speed ahead. "You take a risk in the market like you take a risk when you get up in the morning," says Rideout. So when falling prices knocked his target allocation of 60 percent stocks down closer to 50 percent, he took a deep breath and bought more stocks. Since then, his portfolio has slowly made up ground, and Rideout is confident enough in its future that he just left the U.S. Department of the Interior to join his wife, Anne, in retirement. "You have to go with the flow," says the 63-year-old, "in life and in retirement planning."

Not bad advice. What's more, financial advisers say people who want to stand pat on their retirement date need to keep their assets in the market. But given the bumpy ride they've endured, it's no surprise that many seem to be ignoring such recommendations; a survey this year by McKinsey & Co. found that, of respondents who changed their portfolios because of the financial crisis, 62 percent report investing more conservatively or moving assets into cash. Not only does this strategy lock in losses, says Christine Fahlund, senior financial planner at T. Rowe Price, it all but eliminates the chances your nest egg will recover. Indeed, Fahlund recommends that people enter retirement with about 60 percent of their portfolio in stocks and continue to hold a big chunk of equities even into their 90s.

For people looking to bounce back without putting their retirement at risk, experts continue to recommend a diversified portfolio but encourage investors to seek out growth areas. "People shouldn't see it as a 'set it and forget it' enterprise," says Hans Olsen, chief investment officer for J.P. Morgan's private wealth management business. With some experts speculating that Asia will lead the economic recovery, international stocks can help boost portfolios. And the potential for future inflation has many advisers urging clients to invest in commodities, which fare well when purchasing power drops. The key to minimizing the riskiness of these bets, says Olsen, is to limit them to a small slice of your portfolio-no more than 8 percent for Asian emerging markets and 6 percent for commodities.

Another area retirees can tweak is the amount they withdraw from their portfolio each year. The usual rule of thumb is about 4 percent the first year, with adjustments for inflation each year thereafter. But since the crash, this one-size-fits-all formula may no longer apply. Fahlund suggests retirees keep withdrawals fixed, rather than factoring in inflation, and slowly trim their budgets to adapt. "Most of us can't do it overnight," she says. Some other advisers argue that withdrawal percentages can be bumped up to account for shrunken nest eggs. Jonathan Guyton of Cornerstone Wealth Advisors in Edina, Minn., recommends about 6 percent in a down market, provided retirees don't tap the equities portion of their portfolio until the market rebounds. The caveat, Guyton says, is that people must be prepared to make major spending cuts when necessary and be willing to rebalance in less than ideal times.

Spend Smarter

Of course, the simplest way to be sure your nest egg will last is to wait longer to tap it. Sure, everyone goes into their investments at some point-that's what they're for, after all-but more boomers are taking another look at their spending habits, hoping to postpone that day just a bit longer. A recent survey by the Employee Benefit Research Institute found that 81 percent of people who say they've lost confidence in their retirement security are reducing expenses this year. Many financial advisers say they've been increasingly helping clients identify areas to cut back too. Spencer Sherman of Sebastopol, Calif., provides his would-be retirees with a checklist that goes through their budget line by line, and he encourages them to try experiments like putting a month's worth of cash in an envelope and using only that to cover discretionary expenses. "Spending cash makes you think twice," he says.

When trimming spending on extras like shopping or dinners out isn't enough, more savvy retirees are finding ways to shrink so-called fixed expenses. Among the easiest to cut are utility bills, which make up about 7 percent of household spending. Just switching from regular to compact fluorescent lightbulbs, for instance, saves up to $50 in electricity costs over the life of each bulb, according to the Alliance to Save Energy, and installing a programmable thermostat shrinks usage up to 10 percent, netting the average household about $1,120 over five years. For those considering more substantial changes, some experts recommend an energy audit; though the consultation can cost several hundred dollars, homeowners who end up investing in energy-saving improvements can now take advantage of an increased tax credit of 30 percent of the cost, up to $1,500.

While obvious tweaks like choosing a used car over a new one or swapping a European getaway for a U.S. road trip can always cut spending, a bigger budget buster is something many of us take for granted: health care. For David Freund, health costs became a big enough issue to bump up his retirement date. As a lawyer at the Indiana State Public Defender's Office, he qualified for a state-funded health account that, in his case, was worth a cool $38,000. When rumors began to circulate that the state would end the program, Freund and his wife, Mary Liz, decided to get out while the getting was good. The program is still going, but Freund retired this spring and is now tapping the fund to cover part of the health insurance he shares with Mary Liz.

If that seems like a dramatic move, consider this: According to Fidelity Investments, a 65-year-old couple retiring this year will need about $240,000 to cover their medical expenses in retirement, a 50 percent increase since 2002. While the Freunds' state-sponsored account is unusual, there are more mainstream options. Those whose insurance plan has a high deductible (in 2010, anything from $2,400 on up for a family) qualify for a health savings account, which allows people to sock away money tax-free for heath-related expenses. The 2010 maximum HSA contribution level will be $6,150 for families, with consumers age 55 to 65 allowed an extra $1,000 a year. Flexible spending accounts are another tax-free option. Users forfeit any money that remains in their account at the end of each year, but according to Alexander Domaszewicz, a principal at HR consultancy Mercer, they can reduce the amount spent on qualifying expenses by 20 percent or more.

Redefine the Home

For Kurt and Susan Medert, both 63, the difference between sticking to their retirement time line and not has largely come down to their Bethesda, Md., condo. Despite opting to leave the workforce just as "the world fell apart," says Kurt, the couple is continuing with their plan; Kurt left his position with a trade show production company this spring. In part because they're still nervous about their portfolio, the Mederts have decided that when the time comes, they'll put the condo on the market and look for a place in Cincinnati, near Susan's parents. Not only will the move save on travel (Susan visits her family three times a year), but the relative health of Bethesda's real estate market should allow them to purchase a new home mortgage-free and still have a chunk left over to bolster their savings-and pay for that pool table Kurt has his eye on.

Housing often plays a key role in people's retirement plans, with nearly 80 percent of Americans 65 and older owning property. Relocating to a smaller, easier-to-maintain home is a popular move; of those planning to tap home equity in retirement, more than half say they plan to downsize, according to a survey by the Center for Retirement Research at Boston College. But it's not just about smaller maintenance bills. Choosing a community with a low cost of living can reduce the grocery tab, property taxes and everything in between. The Mederts' move could pay off on all fronts; according to Sperling's Best Places, which collects pricing data on locations throughout the U.S., the cost of living in Cincinnati is 63 percent less expensive than in Bethesda, with housing a whopping 88 percent more affordable.

Still, not everyone is ready to brave today's depressed-and depressing-real estate market. Plus, more than half of home-owners 55 to 64 still have a mortgage. For those still getting out from under this debt, refinancing is now a popular option. The average rate for a 30-year fixed-rate mortgage hit a record low earlier this year, and though rates are a moving target, that could mean lower payments for many households. Of course, the credit crunch has made this tougher than it used to be, so Greg McBride, senior financial analyst at Bankrate.com, suggests refinancing before retirement (lenders are comforted by monthly paychecks) and starting with your original lender, who knows your history. Refinancing works best for people planning to stay in their home for the foreseeable future, since it can take several years to make up the closing costs and start to see a payoff.

Work, Your Way

After finally tossing out their monthly commuter pass, the last thing most retirees want to consider is more work. But as the realities of today's economy-and ever-longer life spans-set in, more people realize that retirement doesn't necessarily mean the end of your paycheck years. In fact, a 2009 survey by the Employee Benefit Research Institute found that about 72 percent of workers say they expect to do some work for pay in retirement, up nine percentage points over last year. And while it's not the most glamorous option, it's the best bet for financial security. Having a part-time job that brings in $20,000 a year gives a retiree the equivalent of withdrawing 4 percent a year from $500,000 in savings. What's more, many retirees find that the extra income allows them to postpone taking Social Security, increasing the ultimate payout by about 8 percent a year, according to T. Rowe Price's Fahlund.

For Dick Horak, retiring at 62 was nonnegotiable. The Spearfish, S.D., resident says he settled on the date decades ago and never wavered. "It would just be too hard to back up on the plan," he says. But when his stock portfolio dropped 30 percent last year, he knew something had to give. So when his January D-day rolled around, Horak decided that rather than leave his architectural and engineering firm altogether, he would phase out slowly, selling his interest in the company but arranging to spend a handful of hours a week consulting. And to his surprise, the new setup accomplished everything that had made him so eager to retire in the first place: The stress of being a small-business owner vanished, and his new schedule left him and his wife, Linda, plenty of time to visit their five grandchildren.

Of those who decide the benefits are worth a few more years in the trenches, many follow Horak's model, keeping one foot in their old career with part-time or contract work. According to Scott Kane, founder of Gray Hair Management, a career-counseling firm for older workers, preretirees interested in this route are now in an especially good position for negotiating an arrangement with their employers, who may be looking for ways to cut costs without sacrificing talent. And for those looking for a change of scenery, the growing number of employers turning to contract workers may mean a wider range of opportunities.

Of course, there's always the "encore career." Unlike consulting or part-time work, this typically involves a new field (health care and "green" jobs are popular) and can last for years or even decades. But there are downsides: Starting a new venture can take time and training and, at least in the short-term, may mean smaller paychecks. Retirees who change careers typically see median wages drop more than 50 percent. Still, for some, the perks of trying out a brand-new gig are exactly what they need to take the sting out of returning to the workforce. For Ira Marks, the Vero Beach man preparing to swap real estate for mediation, the possibility of an encore job means the thrill of the new, a little extra spending money and a work schedule that sums up his ideal version of retirement: "You do as much as you want to and no more."

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 | 15 Oct 2009 | 10:00 pm

Short-Term Gains. Long-Term Pains? (Broker Talk)

The declining value of the U.S. dollar, along with significant government intervention, will continue to bolster the economy in the short term, but the markets, and the economy, will become riskier when the world's central banks pull back.

Who's Talking: David Joy, Chief Market Strategist, RiverSource Investments for Ameriprise Financial

The Gist: Investors will likely expect more growth from companies after the third quarter. In the meantime, a weak U.S. dollar will give certain sectors a boost.

Investors are wondering how third-quarter earnings, which are starting to be reported, will compare to the second quarter, when earnings generally exceeded expectations. Businesses that outperformed in the second quarter generally boosted profits through cost cutting, says Joy, rather than boosting sales. Of the 10 stock market sectors, only financials actually increased revenues, he says. The question now is whether investors will actually tolerate little to no revenue growth again even if a company still beats profit expectations. So far, says Joy, both revenue gainers and cost containers are being rewarded. Cost cutting "as a means to a better bottom line is still sufficient for now," he says.

And some companies will enjoy better earnings this season for another reason: the decline of the U.S. dollar. The value of the dollar dropped by more than 4% in the third quarter and more than 10% in the past six months. That is especially good news for companies that earn the bulk of their revenue abroad, such as tech, energy, materials and industrial companies, says Joy. Alcoa (AA) last week reported firming prices and growing demand overseas, for example, and materials companies should generally follow suit.

So far, earnings this season have been strong. Seventy-one percent of companies have beat earnings expectations in the third quarter, compared to 74% in the second quarter. But the market won't enjoy the luxury of investors' low expectations for much longer, says Joy. By the fourth quarter, "the bar may be raised," and companies will need to rely on more than a weak dollar and low expectations to outperform.

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Who's Talking: The Wells Fargo Economics Group

The Gist: The market is being heavily influenced by the actions of central banks, but easy credit won't last forever.

The Federal Reserve's and the Bank of England's recent purchases of Treasury bonds, corporate bonds and asset-backed securities have made credit cheaper and easier than it would be otherwise, says the group. If the private market were "left to itself," the cost of consumer credit would likely go up, and its availability would go down.

But since economic policies are influenced by politics, government involvement in the market might go on longer than it should. After all, the group says, voters (and their interest groups) want consumer access to housing and cars, and so they use the political process to promote government influence in the credit markets longer than is needed. For this reason, says the group, government support for easy credit during this recovery will be "sustained" and "significant."

Once governments withdraw from interventionist policies, however, interest rates will rise, growth will slow, and the market will find a new equilibrium. Last week's interest rate hike by the Australian government left some investors wondering if other major central banks would also consider raising rates soon. But that's not likely, the group says. Other advanced economies are "significantly weaker" than Australia's. The Fed and the European Central Bank (ECB) will keep interest rates on hold "well into next year," the group says. However, Australia's rate increase did influence the U.S. market in another way, by pushing up the value of the Aussie dollar and driving the U.S. dollar down.

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 | 15 Oct 2009 | 10:00 pm

How to Buy $100 Worth Of Happiness (Money and Your Mind)

They say money can’t buy happiness. They also say a watched pot never boils. Modern science, however, proves both statements wrong. Money, at least up to a point, is clearly capable of bringing happiness — as surely as heat boils water, watched or not.

Given that, here’s a practical question: If you had $100 to spend on happiness, how best would you spend it?

While the question may seem subjective (wouldn’t each person have a different answer?) the emerging science of happiness research tells us that there are some clear patterns that can guide you — ones that cut against some of our most deeply ingrained intuitions.

Let’s assume, of course, that your basic needs are met — food, shelter… iPhone. After all, the biggest happiness boost money can give you is the boost of not being mired in poverty or crushed by debt.

With the basics covered, what kind of purchases are most likely to bring you joy? Should that $100 go toward a Spy Pen from the SkyMall catalogue? A nice pair of shoes? A scarf for winter? Or how about a nice dinner out with your spouse? A play? Should the $100 go toward a weekend away?

It turns out, there’s at least one rule to guide you: Prioritize experiential purchases over material ones.

Experiential purchases are purchases like those toward the end of the list of suggestions above: purchases where you’re buying an experience, an activity, a memory instead of a thing. While people tend to resist experiential purchases because they seem too ephemeral — as if you’re throwing money away on something that’s gone as soon as it’s over — research shows that these are actually the types of purchases that bring us the most happiness.

To understand why look at an experiment, published in 2003 in the Journal of Personality and Social Psychology, that explored how people’s purchases made them feel over time. Researchers had Cornell undergraduates write a description of either a material or an experiential purchase. One week later, the undergrads were brought back in to read their descriptions. In both sessions, researchers measured the students’ moods, using an indirect test, which had them rate how certain adjectives, such as “enthusiastic” or “depressed,” applied to them at that moment.

What the researchers found was that the students’ moods were boosted far more by recalling an experiential purchase than by thinking about a material purchase. What’s more, the researchers found in a separate survey that people seem to spend a lot more time thinking about experiential purchases than about material ones. Why is this? The most important reason has to do with how our minds acclimate to things versus experiences.

Take that iPhone, mentioned earlier. The day you buy it, you may be tempted to build a shrine to it. But as soon as the new one comes out, it’ll start to look like dog food. The Alpo-ization process begins the day you pay for it. One of the most robust findings of happiness research is that we adapt to material advances (a raise, a new gadget, a new car) extremely quickly — requiring further and further advances to feel the same amount of happiness.

Experiences? They seem to improve, like wine or judgment, with age. Think about it. Which will look better in three years time: Your new car or the hiking trip you took to Alaska? You’ll probably suffer some unpleasantness on the hike — blisters, mosquitoes, "Palin for President" signs — but, unless your friend is eaten by a grizzly bear, you’re probably going to remember it fondly, with all the little annoyances fading from memory.

Your car, meanwhile, will be three years old. It’ll be a little scratched up. And you’ll hardly even think about it, unless it needs repairs.

There are some caveats to all this, of course. A follow-up study published this year in the Journal of Consumer Research found that a bad experiential purchase smarts worse than, say, a pair of shoes you come to hate. (Maybe, for instance, your friend did get eaten by that grizzly.) What’s more, the study found, for some highly materialistic people there may be essentially no difference between experiential and material purchases.

But those materialists should beware: Another robust finding of happiness research is that materialism itself is correlated with unhappiness.

Not all purchases, of course, fit neatly into one category or the other. Is that new car for show? Or maybe you’re buying it to take the family on camping trips? And, of course, there are plenty of non-essential material purchases that will nonetheless bring you plenty of happiness over time. But when evaluating that marginal dollar, perhaps it’s worth converting things and experiences into one mental currency for comparison: happiness.

The price of that new iPhone could easily pay for a weekend away. Maybe it should.

Ryan Sager writes the blog Neuroworld at TrueSlant.com.

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 | 15 Oct 2009 | 10:00 pm

Six Smart Books: Tackling Money Issues (Consumer Action)

This week, the stock market closed above 10,000 for the first time in over a year, but is it time for investors to breathe a sigh of relief? Hmm. Maybe you shouldn’t spend that bonus money just yet.

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Books addressing money issues are among those our editors and writers have chosen here. They include a study of how the rich really live, a follow-up to the bestselling Freakonomics, and advice on how to profit from the recent crash — and future ones. We’ve also got a short new novel from Philip Roth about a man’s loss of confidence, a collection of early stories from the late Kurt Vonnegut and a massive book on basketball from an ESPN.com writer.

SuperFreakonomics

By Steven Levitt and Stephen Dubner

Reviewed by Alexandra Scaggs

Good news for free-market devotees: Steven Levitt and Stephen Dubner, authors of the mega-popular Freakonomics, are back with SuperFreakonomics.

And this time they’re bringing their dry wit to such hot-button issues as health-care, terrorism and global warming from an economic perspective.

The book’s larger-than-life subjects include a prostitute making six figures, a society of money-exchanging monkeys, and a group of self-actualized inventors seemingly sprung from the pages of an Ayn Rand novel. While the fictional inventors task themselves with solving the world’s problems one at a time. Levitt and Dubner provide hope that some of the world’s biggest challenges can be solved by old-fashioned, low-cost innovation.

They tackle why so many doctors prescribe chemotherapy, and how one would measure doctor effectiveness. They also look at group-think and a 1964 New York Times article about Kitty Genovese, who was murdered as up to 38 people looked on. It turns out there’s more to that story, too. The authors use that tragic tale (and the article) to address, and discredit, extreme ideas of human behavior, including both apathy and altruism.

SuperFreakonomics provides a refreshingly logical look at some divisive political problems, with studies that encourage the reader to look beyond the surface and to question common wisdom.

 

Stop Acting Rich – And Start Living Like a Real Millionaire

By Thomas J. Stanley

Reviewed by: Robert J. Hughes

If you think that having a 5,000-square-foot McMansion means you’ve arrived financially, think again. You may be fooling the neighbors. You may be fooling yourself. But you’re certainly not fooling Thomas J. Stanley, who aims to shows readers the difference between how the really rich really spend and how wannabe millionaires jeopardize their financial security by focusing so much on the appearance of wealth.

Stanley, who has written before about the affluent in such books as The Millionaire Next Door, and who runs a marketing and research firm geared toward the wealthy, outlines the differences between the haves and the almost-haves, the really wealthy and the merely wealthy and all of us others who make up the rest of the population.

What Stanley discovers (through a special survey he used to collect the information for Stop Acting Rich) is that rich people in general are actually frugal, driving Toyotas instead of BMWs, owning only one home instead of several. They’re not cheap, but they’re also not concerned with showing off their wealth. That’s an attitude markedly different from that of the aspirational buyers in our spendthrift culture who fork over $60 for bottles of Grey Goose vodka, $3,000 for Chanel suits and $250 for haircuts. Most of these people are merely buying into a myth that looking the part will get them the gig, as Stanley observes.

How should those of us who don’t have a personal net investment worth of $1 million spend our money? In other words, how should we start living like real millionaires?

Mainly, Stanley has the good sense to suggest that, as millionaires do, we live below our means, that happiness isn’t found in having a wine cellar, or a walk-in closet or a Maserati (hard to believe, but apparently true). It seems like an all-too-easy prescription for our society of debt-addled consumers. But after reading through Stanley’s engaging anecdotes about how the other America actually lives, you may come to feel that perhaps you don’t need to impress the other guy so much. This in itself is no small thing. Your wallet will thank you. And you may end up happier.

 

Crash Proof 2.0 – How to Profit from the Economic Collapse

By Peter D. Schiff, with John Downes

Reviewed by: Robert J. Hughes

In this follow-up to 2007’s Crash Proof (also written with John Downes), Wall Street prognosticator and investment advisor Peter Schiff examines the dramatic changes that are reshaping the American economic landscape and offers advice on how to maintain financial security.

He suggests that investors rethink their stock portfolios – and he advises weighing heavily toward foreign securities that he believes are better positioned to offer long-term returns. In fact, Schiff believes investors should get out of the domestic stock market and out of the U.S. dollar, as he has advised before. “Wall Street has led the American public to think stocks have the safety of bonds,” he writes, adding that Wall Street has also “muddled the distinction between investing and speculating.” We know that now, but it’s always good to be reminded of it forcefully, as here.

Some investors may not agree with Schiff’s other suggestions, such as living abroad rather than in the U.S., but the book has interesting information on inflation, the value of placing money in precious metals and the real-estate debacle (which he blames on the conflicts of interest arising out of securitization).

Most valuable, though, is the clear-cut way Schiff has of explaining the basic ins-and-outs of finance, such as what a common stock is, how inflation works, what are valuation ratios, and such, so that when speaking to a broker an investor can at least make sense of the jargon that’s being tossed at him.

 

The Book of Basketball

By Bill Simmons

Reviewed by: Jason Kephart

Over the course of its 60-plus year history, the NBA has given fans countless topics for debate. How would the stars of yesterday handle themselves against the stars of today? Which team had the single greatest season? And, of course, everybody’s favorite — who are the all-time best basketball players?

It’s questions like these that author Bill Simmons tries to answer — and for the most part does — in his engaging 700-page tome. The Big Book of Basketball covers everything from the league’s struggles with race in the 60s and 70s (having a mainly white fan base and black stars complicated things), to the “secret of basketball” as Simmons learned it from one of the NBA’s greatest players and worst general managers — while poolside at a topless bar in Las Vegas.

The real heart of the book is Simmons’s restructuring of the NBA’s hall-of-fame into a 5-tiered pyramid, based on his own rankings that go beyond simple statistics and individual accolades to include how someone played as part of the team. Which is why Simmons prefers a person like Celtics great Bill Russell to Wilt Chamberlin. On paper there doesn’t seem to be much comparison: Chamberlin trumps Russell in nearly every statistical category, except championships won. But for Simmons, Russell’s overall strengths were greater: “I’d rather have the guy who always seemed to end up the winner in close games.”

Of course, Simmons’s preference for Russell over Chamberlin could be attributed by some to his not-at-all-secret Boston-bias (he refers to Larry Bird as “Basketball Jesus” more than a few times) but as anyone who has read Simmons’s Sports Guy columns at ESPN.com knows, it’s traits such as his unabashed love of Boston that make Simmons such a great read for sports fans. He’s a fan like us.

Whether you agree with his conclusions in the book or not (Kareem Abdul-Jabbar over Magic Johnson? Really?) isn’t really important. As every sports fan knows, it’s the arguing that’s really the fun part.

 

Look at the Birdie

Author: Kurt Vonnegut

Reviewed by: Damian Fowler

The late, great American writer Kurt Vonnegut clearly found his voice early. In this delightful anthology of previously unpublished short stories written just as he was starting out, Vonnegut’s characteristic style is already well underway. The mordant wit and gentle humanism that would later characterize his most famous novels — Slaughterhouse Five, Cat’s Cradle, Breakfast of Champions — is evident in all of these pieces.

In the dark circus of Vonnegut’s imagination, small-town America is at once bizarre and familiar. So often his seemingly unexceptional characters find themselves embroiled in absurd situations. In the title story, a quack psychiatrist turned “murder counselor” finds new outlets for his paranoid patients. In “The Nice Little People,” a linoleum salesman coming home to celebrate his wedding anniversary discovers a hollow paper knife filled with tiny little aliens. This is science fiction with a neurotic twist.

Then there’s Vonnegut’s tragicomic take on the corporate world. In “Fubar,” isolated office worker Fuzz Littler tries to impress his new secretary only to face the “monumental pointlessness of himself and his job.” Not to worry, though — there’s a wonderful redemption that only Vonnegut could dream up.

Vonnegut, with one of the most distinctive voices of post-war America, used humor to tackle fundamental questions of life, love and work. Look at the Birdie, a terrific collection (featuring his whimsical line drawings) comes two years after his death and reminds us that Vonnegut’s work is as urgent, relevant and funny as ever.

 

The Humbling

By Philip Roth

Reviewed by: Jami Makin

In his recent novels Philip Roth has explored aging and its impact on creativity, on the continuing hunger for erotic connection in the face of physical decline, on the nature of being itself. His newest, The Humbling, concerns a catastrophic breakdown of ability: For one man, what worked so well in the past no longer seems to function at all. This unanticipated failure unleashes panic, despair and a subsequent loss of power and prestige.

This may sound an awful lot like the economic meltdown. But here Roth examines the fate of a creative artist, Simon Axler, a legendary stage actor whose life unravels as his confidence in his skill vanishes. Axler’s crisis of artistic validation, combined with the departure of his wife Victoria, leads him to consider suicide, then to a voluntary stay at a psychiatric hospital. There, the aging actor befriends Sybil, a younger woman who dreams of killing her second husband for molesting her eight-year-old daughter.

Axler meets another young woman after leaving the hospital. This time the connection is sexual, and as it deepens each partner takes something from the other. The woman receives clothes, jewelry and the chance to recover from a traumatic relationship. Axler, meanwhile, regains his confidence and begins plotting a return to the stage. But when his plans are suddenly jeopardized, Sybil must return to help him complete his journey toward artistic reinvention.

The Humbling displays Roth’s undiminished command of prose, but is a little too stripped-down, though: Many questions remain unanswered at the end.

Kind of like the recent financial crisis.

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 | 15 Oct 2009 | 10:00 pm

Soros says U.S. economy will be drag on world growth

NEW YORK (Reuters) - Billionaire investor and philanthropist George Soros said on Thursday that the world's current "currency arrangements" are fraught with danger and that the world needs global regulation.
Source: Reuters: Business News | 15 Oct 2009 | 8:32 pm

Air NZ cuts domestic airfares

Air New Zealand is simplifying its domestic fare structure, saying fares to regions will fall by as much as 23 per cent.Effective from Monday, fares are being reduced by 10 per cent on average to help stimulate domestic travel....
Source: nzherald.co.nz - Business | 15 Oct 2009 | 8:32 pm

Firm: Calif. home sales up 1 percent from August (AP)

AP - The number of homes sold in California last month ticked up last month from August, as low mortgage rates and eagerness to cash in on a soon-to-expire tax credit fueled activity in a normally sluggish time for home buying, a tracking firm said Thursday.
Source: Yahoo! News: Business | 15 Oct 2009 | 7:26 pm

Wasserstein death to result in $186.5 million payment

NEW YORK (Reuters) - Former Lazard Ltd Chief Executive Bruce Wasserstein's death will result in a payment of more than $186 million in restricted stock, according to the company's proxy statement.
Source: Reuters: Business News | 15 Oct 2009 | 7:12 pm

Google gears up for fresh expansion

Google declared the worst of the recession over as it reported a surprisingly strong 8% increase in net revenues in the latest quarter and earnings that were 10% ahead of Wall Street’s expectations
Source: Financial Times - US homepage | 15 Oct 2009 | 6:33 pm

Chinese company to buy 13pc stake in PGG Wrightson

Chinese seed and agricultural research company Agria will take a 13 per cent stake in PGG Wrightson under a deal that's dependent on Wrightson raising enough capital to repay $200 million of debt due in March.Agria, which trades...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 6:30 pm

US hardens stance on renminbi rigidity

The Obama administration said that it had “serious concerns” about the value of the renminbi, but stopped short of accusing China of manipulating its currency in a closely watched report to Congress
Source: Financial Times - US homepage | 15 Oct 2009 | 6:21 pm

BofA's Lewis 2009 pay cut, retirement under review (Reuters)

Reuters - Bank of America Corp's departing chief executive, Kenneth Lewis, will receive no pay for 2009, but questions still linger about his $125 million retirement payout.

Source: Yahoo! News: Business | 15 Oct 2009 | 6:16 pm

BofA's Lewis 2009 pay cut, retirement under review

CHARLOTTE/WASHINGTON (Reuters) - Bank of America Corp's departing chief executive, Kenneth Lewis, will receive no pay for 2009, but questions still linger about his $125 million retirement payout.
Source: Reuters: Business News | 15 Oct 2009 | 6:16 pm

Google says economy is on the mend

Google said yesterday that the worst of the recession is now over as it reported a rise in quarterly profits and sales ahead of analysts’ expectations.


Source: Latest Business News from Times Online | 15 Oct 2009 | 6:02 pm

David Wilshire to stand down over £100,000 allowances paid to own company

A Conservative MP who is facing questions over why he paid more than £100,000 of public money to his own company will not stand at the next general election.
Source: Latest Business News from Times Online | 15 Oct 2009 | 6:01 pm

Anglo American buys time from investors and forces Xstrata to walk

Xstrata, the Anglo-Swiss mining group, walked away yesterday from its proposed merger with Anglo American after the South African miner secured a 12-month stay of execution to turn the company around.


Source: Latest Business News from Times Online | 15 Oct 2009 | 6:01 pm

Huge Goldman Sachs pay pool could enrich Treasury by £2bn

The Chancellor stands to receive £2 billion of Goldman Sachs’s record-breaking compensation pool if the Wall Street bank continues its winning streak (see Commentary, facing page).


Source: Latest Business News from Times Online | 15 Oct 2009 | 6:01 pm

Investors get jitters as Citigroup fuels fears over US economy

Citigroup managed to scrape a net profit of $101 million ($£62 million) in the third quarter but it was not enough to prevent fears about the health of the American economy from sending stock markets down yesterday in an initial response.


Source: Latest Business News from Times Online | 15 Oct 2009 | 6:01 pm

TrustPower fined for misleading customer advice

Electricity company TrustPower has been fined $17,000 for failing to give adequate information about low user tariff options in letters purporting to advise customers about their best choice of tariff.The Commerce Commission took...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 6:00 pm

Google, IBM round out strong tech results week

SAN FRANCISCO (Reuters) - Google Inc and IBM rounded out a strong week of technology results, outstripping already high expectations and providing further evidence that a recovery is brewing.
Source: Reuters: Business News | 15 Oct 2009 | 5:41 pm

Google, IBM round out strong tech results week (Reuters)

Reuters - Google Inc and IBM rounded out a strong week of technology results, outstripping already high expectations and providing further evidence that a recovery is brewing.
Source: Yahoo! News: Business | 15 Oct 2009 | 5:41 pm

CVC and Cosmen withdraw bid for National Express

CVC and the Cosmen family will today withdraw their £765m bid for rail and bus operator company National Express after the consortium could not make the numbers stack up.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 15 Oct 2009 | 5:40 pm

IBM (IBM) And Google (GOOG): The Corporate Recovery Has Not Arrived

IBM (NYSE:IBM) and Google (NASDAQ:GOOG) each reported better-than-expected earnings. Wall St.’s reaction to the Google numbers was muted and its stock moved up 3% to $547. IBM raised its guidance for the year, but the market was disappointed and pushed the computer giant’s shares down by 3% to $123. Google and IBM both trade near [...]

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Source: 24/7 Wall St. | 15 Oct 2009 | 5:39 pm

Goldman profit quadruples; bonus reserve lower

NEW YORK (Reuters) - Goldman Sachs Group Inc's vaunted trading operations helped the dominant Wall Street firm quadruple its earnings, but investment banking results were lackluster and its shares fell.
Source: Reuters: Business News | 15 Oct 2009 | 5:39 pm

Lewis to go without pay or bonus for 2009

Ken Lewis, who intends to retire as Bank of America chief executive at the end of the year, will receive no pay or bonus for 2009, averting a dispute over the matter with Kenneth Feinberg, the Obama administration’s “pay tsar”
Source: Financial Times - US homepage | 15 Oct 2009 | 5:38 pm

SEC, CFTC mull joint enforcement squad: sources (Reuters)

Reuters - U.S. securities and futures regulators are considering a joint enforcement squad to investigate and root out fraud in the markets, two sources familiar with the matter said on Thursday.
Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 5:36 pm

SEC, CFTC mull joint enforcement squad: sources

WASHINGTON (Reuters) - U.S. securities and futures regulators are considering a joint enforcement squad to investigate and root out fraud in the markets, two sources familiar with the matter said on Thursday.
Source: Reuters: Business News | 15 Oct 2009 | 5:36 pm

Google leaves recession behind with good profit result

SAN FRANCISCO - Google shifted into a higher gear in the third quarter and began to leave the recession behind as the 11-year-old internet search leader recorded its highest profit ever.The results are the strongest indication...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 5:30 pm

30,383 jobs: First tally on stimulus

The White House on Thursday unveiled the first hard data on how many jobs the $787 billion recovery act has created.
Source: Business and financial news - CNNMoney.com | 15 Oct 2009 | 5:29 pm

South Canterbury Finance wins more time for repayment

South Canterbury Finance has won some badly needed breathing room, yesterday saying it had reached an agreement with a consortium of five US note holders owed US$100 million ($134 million) to repay them over the next 5 months.The...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 5:00 pm

Shares rise early, PGG up 23pc

Shares in rural services firm PGG Wrightson climbed 23 per cent in early trading after the company announced it would raise $36 million through an issue
Source: nzherald.co.nz - Business | 15 Oct 2009 | 4:48 pm

Write-Offs: 10.15.09

$$$ MBA students rebuilding credibility of businesspeople one underwear company at a time. [WSJ]

$$$ Goldman Sachs' (too much) money problems [The Deal]

$$$ NYT Editorial approves sale of Phibro, which lost money one day in 1991. [NYT]

$$$ Ex-Goldman fund manager Carhart to launch firm [Reuters]

Sponsored Topics: Master of Business Administration - Goldman Sachs - The New York Times Company - Education - Colleges and Universities
Source: Dealbreaker | 15 Oct 2009 | 4:45 pm

Specter of MRI Disease Haunts GE

by Jeff Gerth, ProPublica In May 2006, medical regulators in Denmark issued a warning that signaled trouble for General Electric (NYSE:GE). Danish researchers noted that, over a four-year period, 25 patients in Denmark and Austria had suffered a rare and crippling disease after undergoing an MRI, the scanning procedure used to diagnose everything from brain tumors [...]

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Source: 24/7 Wall St. | 15 Oct 2009 | 4:45 pm

Ken Lewis Will Pay For What He's Done This Year

Kenny Boy's pay package for 2009 will consist of $0 in salary, $0 in bonus and a bill. Not only will KL see two bagels for his efforts this year, but the pay czar is making him pay back the $1 million plus he's already earned.

A Bank of America spokesman said Mr. Lewis voluntarily agreed to the deal, which was finalized Thursday.

"Mr. Feinberg suggested that Ken Lewis should take no compensation for 2009. Mr. Lewis agreed. Mr. Lewis added that he felt it was not in the best interest of Bank of America for him to get involved in a dispute with the paymaster," the spokesman said.

Outgoing BofA CEO Ken Lewis to Receive No Salary, Bonus for 2009 [WSJ]

Sponsored Topics: Bank of America - Wall Street Journal - Ken Lewis - United States - Salary
Source: Dealbreaker | 15 Oct 2009 | 4:39 pm

ASB hikes mortgage rates

ASB and its subsidiaries Sovereign and Bank Direct have raised fixed mortgage rates across the board this morning in a sign that another round of rate hikes has begun.The latest move includes a six month rate hike. Six month rates...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 4:37 pm

IBM earnings jump on diversification move

IBM’s third-quarter earnings jumped 18 per cent from a year earlier, slightly surpassing Wall Street expectations, as the company’s diversification plan continued to yield results
Source: Financial Times - US homepage | 15 Oct 2009 | 4:36 pm

Galbraith admits Kurdish oil interest

Peter Galbraith, the former US diplomat and leading advocate of Kurdish autonomy, acknowledged that he had business “activities” in the oil sector in the northern Kurdish region of Iraq
Source: Financial Times - US homepage | 15 Oct 2009 | 4:34 pm

Goldman Sachs, Citi surprise markets with good profits

Goldman Sachs Group posted third-quarter earnings that more than tripled and Citigroup surprised investors by reporting a profit, adding to signs that lenders have shaken off the effects of recession.Goldman's profit jumped to...
Source: nzherald.co.nz - Business | 15 Oct 2009 | 4:30 pm

Stocks rise as energy gains offset drop in banks (AP)

AP - A late-day surge left stocks with modest advances Thursday as a jump in the price of oil lifted energy companies and offset weakness in bank shares.

Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 4:23 pm

Politically Correct Pepsi

Who said PC was dead?

Any guesses where this photo was taken?

Source: Business Pundit | 15 Oct 2009 | 4:20 pm

How the major stock indexes fared on Thursday (AP)

AP - A late-day surge left stocks with modest advances Thursday as a jump in the price of oil lifted energy companies, offsetting weakness in bank shares. The gains came a day after strong profit reports from JPMorgan Chase & Co. and Intel Corp. vaulted the Dow Jones industrials above the 10,000 level for the first time in a year.
Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 4:05 pm

Presented By:

Source: Dealbreaker | 15 Oct 2009 | 4:03 pm

Delicate Flower Lets Down Wharton Students

From: Simons, Jane

Date: October 15, 2009 1:11:23 PM EDT

Subject: Cancellation: Ronald Perelman, Tarnopol Dean's Lecture Series

Dear Wharton Community,

We know many of you have been looking forward to today's Michael L. Tarnopol Dean's Lecture, featuring Ronald O. Perelman, Chairman and Chief Executive Officer of MacAndrews & Forbes Holdings Inc. Unfortunately, due to inclement weather, Mr. Perelman is unable to make it into Philadelphia this afternoon.

Sponsored Topics: Chief executive officer - Chairman - Ronald Perelman - MacAndrews & Forbes Holdings - United States
Source: Dealbreaker | 15 Oct 2009 | 4:03 pm

Bank Of America’s (BAC) Ken Lewis: You Can Keep Your Job, But Not Your Salary

Bank of America (NYSE:BAC) CEO Ken Lewis is still the firm’s CEO. He was going to leave at the end of the year. The board of the bank would like to find a replacement sooner, but they are either indecisive or can’t find a good candidate. Lewis still occupies the corner office. Lewis, always a good [...]

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Source: 24/7 Wall St. | 15 Oct 2009 | 3:46 pm

Raise Your Hand If You're A Former Met Who Owes Back Taxes

At this rate, the '86 Mets will be known more for fielding a team of future legal disasters than beating the Red Sox. Lenny Dykstra teammate Ron Darling is reportedly about $544k short of being considered square with various state and federal agencies. The three batters Darling needs to retire are the IRS for $446.5k owed, the State of New York for $12.5k and the State of California for $85k. But there may be at least a ray of hope for the right-hander. Assuming he hasn't done so already, recent transactions in the increasingly liquid market for '86 World Series rings suggest a solid $50k of debt could be wiped off the books pretty quickly.

Sponsored Topics: New York - New York Mets - California - Ron Darling - United States
Source: Dealbreaker | 15 Oct 2009 | 3:39 pm

Google profits increase 27pc to 1.64bn in the third quarter

Technology giants Google and IBM surpassed expectations as they each delivered £1bn thirdquarter profits.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 15 Oct 2009 | 3:32 pm

Gap to return to TV ads, expand into China (AP)

AP - The apparel retailer Gap Inc. on Thursday announced plans to return to television advertising in November for its namesake brand, after a two-year hiatus, and said it will continue to expand internationally.
Source: Yahoo! News: Business | 15 Oct 2009 | 3:25 pm

Gold knocks down TSX but oil limits loss (Reuters)

Reuters - The TSX fell moderately on Thursday on lower gold prices and disappointing U.S. earnings news, but advances in the oil and gas group limited the decline.
Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 3:24 pm

Anglo needs to sort platinum sell Tarmac and polish the diamonds

It has been said before that Sir John Parker's appointment as chairman of Anglo American would buy the mining company's chief executive Cynthia Carroll some time to turn the business around. Now she knows how much - six months.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 15 Oct 2009 | 3:17 pm

IRS: Retirement contributions same for 2010 (AP)

AP - The maximum contribution limits for your 401(k) and other retirement plans will stay the same next year, the IRS says.
Source: Yahoo! News: Business | 15 Oct 2009 | 3:16 pm

It's not just Goldman Sachs staff making hay

All eyes on the bonus pool at Goldman Sachs yesterday. But my eyes bulged at another figure - the bank's return on equity.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 15 Oct 2009 | 3:15 pm

Ex-NYSE president Putnam denies fraud claim in court (Reuters)

Reuters - Former New York Stock Exchange president Gerald Putnam on Thursday denied claims in court that he and two others cheated a former business partner out of $30 million to $50 million.
Source: Yahoo! News: Business | 15 Oct 2009 | 3:13 pm

Ex-NYSE president Putnam denies fraud claim in court (Reuters)

Reuters - Former New York Stock Exchange president Gerald Putnam on Thursday denied claims in court that he and two others cheated a former business partner out of $30 million to $50 million.
Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 3:13 pm

A Model For AIG To Follow

If AIG wants to learn what constitutes acceptable compensation in this market, they should look to one of Ken Feinberg's success stories so far, Lehman. While the cost of paying people to handle a firm with less than optimal growth prospects came in at a little over $400 million last year, the czar found less than an average GS bonus's worth of egregious behavior among the 23 law firms, financial advisers, investment banks and consulting firms involved in the clean up.

So far, Mr. Feinberg's committee has found relatively few problems with the fees charged in Lehman's bankruptcy. According to a report it filed with the court, the committee found just $223,262 in "inappropriate fees" through January 2009. It also recommended guidelines for future billing: no car service before 8 p.m., working meals limited to $20 per person and explanations for billing more than 18 hours in a day

So the message is clear. If you want to find institutions that pay appropriately in the current economic environment, don't look to the bailed out ones, look to the bankrupt ones.

Sponsored Topics: American International Group - Investment Banks - Bankruptcy - Business - Financial services
Source: Dealbreaker | 15 Oct 2009 | 3:09 pm

Level 3 Filing Pressure Shares, Maybe Unjustly (LVLT)

Level 3 Communications, Inc. (NASDAQ: LVLT) has just disclosed in an SEC filing the “Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.”  The company noted that it consummated the transactions contemplated by a Securities Purchase Agreement that it executed with certain investors on October 1, 2009 in [...]

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Source: 24/7 Wall St. | 15 Oct 2009 | 2:49 pm

Somebody Bail This Kid Out

Update: He's not in the balloon, and his dad was on Wife Swap.

Sponsored Topics: Msnbc.com - Breaking news - World News - Television - Arts
Source: Dealbreaker | 15 Oct 2009 | 2:29 pm

Rogoff, Reinhart on Their Book `This Time Is Different': Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 2:27 pm

Fears Of Inflation Ease As CPI Stays Low

By Caitlin Kenney

The Consumer Price Index, or CPI, rose 0.2 percent in September, after a 0.4 percent increase in August. Consumer prices are down 1.3 percent from a year ago. The lack of inflation is good news for central bankers who want to keep interest rates low for as long as it takes for the economy to recover.

Energy prices were up 0.6 percent in September, but food and housing prices both fell. Rent and owners' equivalent rent, which measures how much homeowners think their houses would rent to someone else, both fell by 0.1 percent. It was the first time rent fell since 1992. Rent and rental equivalence are important figures, since they make up 30 percent of the total CPI and nearly 40 percent of the core CPI, which excludes food and energy.

As someone who recently rented my first Manhattan apartment, I find it scary to think that the rents that I saw advertised are much lower than last year. I can only imagine what my current apartment would have rented for a year ago. Bloomberg reports that the median rent for a one-bedroom apartment in Manhattan is down 11 percent from last year. Nationally, rents are down 2.7 percent.

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Source: NPR Blogs: Planet Money | 15 Oct 2009 | 2:19 pm

Carrefour beats hasty Russian retreat

Europe’s biggest retailer is to pull out of Russia only months after opening its first stores there, blaming its departure on its inability to reach a “leadership” position
Source: Financial Times - US homepage | 15 Oct 2009 | 2:08 pm

Guy Who Helped UBS Clients Avoid Paying Taxes, Ratted Out Colleagues To IRS Would Like Reward For A Job Well Done

Bradley Birkenfeld was sentenced in August to more than three years in prison for helping some people not pay their taxes during his time as a private banker at UBS. That's fine, and he accepts that. What Birkenfeld does not accept, however, is a bull shit claim by the Internal Revenue Service that they don't owe him any money for helping build a case against the Swiss bank, and what appears to be less than a veiled threat that they won't have a check waiting for him when he gets out of the joint. His representation agrees.

Birkenfeld lawyer Dean Zerbe of Zerbe, Fingeret, Frank & Jadav said his client is entitled to a piece of the U.S. government's $780 million settlement with UBS, and that he also has a claim to a portion of the money the IRS recovers from wealthy Americans who hid assets in offshore accounts -- both at UBS and at other banks.

Zerbe also makes a seriously bold claim that while probably difficult to prove could make Birkenfeld's case.

"He didn't just give them a piece of the puzzle. He gave them the entire puzzle," Mr. Zerbe said. "They didn't know how to spell UBS until he showed up."

Sponsored Topics: Internal Revenue Service - United States - UBS AG - Banking in Switzerland - UBS
Source: Dealbreaker | 15 Oct 2009 | 1:59 pm

Bill Gates shifts focus to fighting hunger

The Microsoft founder has put the focus of his foundation on agriculture, saying that making poor farmers more productive will have a ‘massive impact’ on hunger
Source: Financial Times - US homepage | 15 Oct 2009 | 1:42 pm

Blog Action Day 2009: 5 Business Strategies for Going Green

Business Pundit is celebrating Blog Action Day 2009 by offering businesspeople strategies for going green. The topic this year is climate change. We’ve listed five strategies companies can use to go green, both to preserve planetary health and tend to the bottom line.

We emphasize value-added activities that will increase perception of your company and help marketing efforts. Use these tips in conjunction with energy-saving efforts that lower operating costs.

1. Go renewable–and let everyone know

Renewable energy bolsters public perception of a company. It marks you as a responsible, conscientious, caring organization. Harness this perception to attract more customers and increase your market share.

Whole Foods, for example, has established a “Green Mission” that includes offsetting all of its energy consumption with wind energy credits. As a result, the Environmental Protection Agency named Whole Foods its Green Power Partner of the Year in 2006 and 2007. A slew of good publicity followed.

Other large corporations, including FedEx, Wal-Mart, Costco, and Safeway also have renewable energy programs.

2. Market to guilt

Image: Stuff Young Jewish Adults Like

Humans, specifically Americans, generate most of the CO2 emissions that contribute to global warming. This sordid fact weighs on the public conscience, compelling consumers to seek out products and services green enough to assuage their guilt. Offering ways to mitigate enviro-guilt draws more customers to your company, which ultimately can boost your bottom line.

For example, the San Francisco International Airport (SFO) recently became the first airport in the country to offer carbon offset kiosks. With a simple swipe of a credit card, customers contribute to reforestation and biofuels, assuaging their sense of guilt about boarding a fuel-hungry, CO2-emitting jet. The program certainly differentiates SFO from other nearby airports, potentially boosting perception to the point of attracting more fliers.

Oil- and gas company BP is another example. It touts itself as one of the first oil companies to “take precautionary action to address climate change.”

Company officials emphasize that BP has made efforts to reduce emissions at its extraction operations, innovated a new type of gas that emits fewer toxins, and invested in clean technology research.

Does that absolve BP from the fact that it makes money by mining oil? No, but by emphasizing its efforts to mitigate the damage, BP is tacitly admitting that although it’s a bad guy, it wants to do good by the environment. In other words, it is appealing to consumer guilt.

Note: Some might label BP’s efforts as greenwashing. Regardless, it is using the tried-and-true tactic of addressing consumer guilt to clean its image.

3. Green your logo

Speaking of greenwashing, we make this point with a caveat: If you green your logo, please do something to back it up. Run your organization off renewable energy. Weatherize your building. Donate to eco-wise nonprofits. Sell green products. Otherwise, you risk being seen as a greenwasher.

Back to whipping boy BP. It’s an oil company, but its logo–a green flower-like symbol–evokes feelings of green. Does BP’s green logo and website design make the oil company look more environmentally friendly? On a subconscious level, it does.

If I didn’t know what BP was, and saw its logo for the first time, my first impression would be of a pretty green flower. Logo-wise, it looks much greener than, say, Chevron, whose red-and-blue logo evokes more patriotic feelings on first impression. Design counts.

4. Donate to Earthy causes

Reserve a portion of your profits for a nonprofit that works to restore the planet, like 1% For the Planet. Or make monthly/annual donations to an organization that preserves and restores nature. Making a financial commitment will show the general public that you put your money where your mouth is. Make sure that you publicize your donations well.

5. Sell eco-minded products

Image: Zazzle/Eco Girl

Nobody was buying canvas bags in the 1980s. Now, almost every grocery store sells lines of reusable shopping bags at the checkout counter.

People want to go green–and they’ll spend money to do it. Address that need with new products and services. They can complement your current offerings, or represent a deviation from your traditional wares. If you’re a service, develop a new brand that addresses the needs of people in the burgeoning green industry. Or market to people who want to feel more green.

Read up on what other bloggers have to say at BlogActionDay.org.

Source: Business Pundit | 15 Oct 2009 | 1:23 pm

Michael Moore Misses The "Leave It To Beaver" Days Of Capitalism

He's also not down with the $30 billion Bank of America is set to hand out in bonuses, and would instead prefer a warrant for Ken Lewis's arrest.



Sponsored Topics: Breaking news - World News - Msnbc.com - Bank of America - Arts
Source: Dealbreaker | 15 Oct 2009 | 1:15 pm

Nevada Leads Parade Of Foreclosures

By Laura Conaway

Foreclosure filings rose by 5 percent in the third quarter of this year, reports RealtyTrac, which deals in foreclosed properties. Filings were up by 23 percent from the same period in 2008.

One in every 136 U.S. housing units received a foreclosure filing during the quarter -- the highest quarterly foreclosure rate since RealtyTrac began issuing its report in the first quarter of 2005.

From August to September, foreclosures slowed by 4 percent -- and were still high enough to make September's the third highest total since RealtyTrac starting keeping the numbers in January 2005.

NPR keeps a county-level map of foreclosures. Nevada led the pack among states, with one in every 23 housing units getting foreclosure papers last quarter. Arizona and California followed, each with one in every 53 homeowners getting a notice.

As you can see from the map, foreclosures are concentrated in particular states. Just over 60 percent of the nation's foreclosure filings last quarter happened in California, Florida, Arizona, Nevada, Illinois or Michigan. California alone saw almost 27 percent of the total.

Bonus: Owners' rent drops for the first time since 1992.

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Source: NPR Blogs: Planet Money | 15 Oct 2009 | 1:12 pm

.03 Million Down, 3.47 Million To Go

It turns out there weren't quite so many shovels ready to be put to good use after all. After changing the standard from job creation to job creation or salvation, the stimulus program's first employment report card came out today and revealed that businesses receiving stimulus contracts created or saved 30,383 jobs. This sounds a bit low. It's almost cause for concern. But we've got a group in DC committed to making sure the unemployment rate is within at least 2% of the level used in the federal budget. They will not stand for this.

Sponsored Topics: Employment - Unemployment - Job creation program - United States - Business
Source: Dealbreaker | 15 Oct 2009 | 1:00 pm

BASF Raised to `Outperform’ at Credit Suisse: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 12:22 pm

Levitt Calls for Probe of Public-Pension System: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 12:20 pm

Google to launch platform for selling books online

FRANKFURT -- Google Inc. is launching a new online service that will let readers buy electronic versions of books and read them on such gadgets as cell phones, laptops and possibly e-book devices.

Source: L.A. Times - Business | 15 Oct 2009 | 12:20 pm

US bank results highlight recovery gap

Bumper third quarter profits at Goldman Sachs and another loss for Citigroup on Thursday highlighted the gap between the financial resilience of Wall Street and the woes of Main Street, fresh evidence that two Americas are emerging from the crisis
Source: Financial Times - US homepage | 15 Oct 2009 | 11:56 am

Orenbuch, Calomiris Discuss Banking, Mortgage Regulation: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 11:17 am

Halloween retailers scaring up business

Americans are expected to spend 15% less on Halloween than last year. But retailers aren't running away from that spooky news. Cash Peters checked out their tricks and treats in Las Vegas earlier this year.
Source: Marketplace | 15 Oct 2009 | 10:54 am

A look beneath the WASPish veneer

Tad Friend, who wrote a New Yorker column about how his WASP parents lived without the money and prestige they'd once known, has written a book on the history of his family. It's called "Cheerful Money." He discusses it with Kai Ryssdal.
Source: Marketplace | 15 Oct 2009 | 10:54 am

Is commercial real estate next to fall?

We all know about the crisis in residential real estate. But what about the commercial real estate market? Is it going to collapse as some experts and pundits are predicting? Jeremy Hobson reports.
Source: Marketplace | 15 Oct 2009 | 10:54 am

Foreclosure wave isn't going away soon

In the last three months banks have foreclosed on nearly a million homes -- up almost 25% over last year. And such actions are spreading to more middle-class and upper-income neighborhoods. Curt Nickisch reports.
Source: Marketplace | 15 Oct 2009 | 10:54 am

What keeps pushing the Dow higher?

With unemployment still rising and consumers still wondering if it's safe to spend again, what keeps pushing the Dow Jones Industrial Average higher -- to over 10,000 points again today? Our Senior Business Correspondent Bob Moon reports.
Source: Marketplace | 15 Oct 2009 | 10:54 am

Panel passes new rules on derivatives

The House Financial Services Committee has passed new regulations for derivatives, those complex insurance policies reponsible, in part, for the collapses at Lehman Brothers and AIG. John Dimsdale reports.
Source: Marketplace | 15 Oct 2009 | 10:54 am

Smaller banks holding up amid crisis

Goldman Sachs, Citigroup and JPMorgan-Chase have gotten a lot of attention for their better-than-expected quarterly earnings. But what about the 8,000 other banks in the U.S. that have to be working right for the economy to get better? Jeff Tyler reports.
Source: Marketplace | 15 Oct 2009 | 10:54 am

Letter: The 'Best' Hospital In Turkey

Tom O. writes:

My wife, Marion, and I traveled to Turkey this May, just to be tourists. Amazing country and the people could not be much greater. Marion did all the planning and the only thing I knew of health care in Turkey when we arrived there was that we did not need evacuation insurance. Part of our Regence Blue Shield coverage includes reimbursement for out of pocket medical expenses abroad, I think the limit is $10,000, and this was considered sufficient.

We were staying for a few days in a the Kelebeck Hotel in Goreme, in Cappodicia. Marion became ill and had to stay in bed for a day, and was sick the next day as well. The manager was a man named Hasan who became my favorite Turk. I spoke to him about whether there wass a clinic in town. He did what little convincing was needed to get me to insist to Marion that she see a doc right away.

Hasan took us to the doctor's office. It was the lunch hour and Hasan went to the doctor's house next door while we waited in the car. Soon the doctor arrived, unlocked and went in. We followed him in. After a short conversation between Hasan and the nurse, Marion was seen by the doctor. He spoke little English. According to Marion his comment to her was, "Not so bad, but not so good." He gave her a prescription for antibiotics, politely shook hands, showed her out of his office and closed his door. Marion and I looked around for someone to do paperwork and pay. Hasan gave us a "What!?" look and let us know: no paperwork, no charges. The antibiotics were about $12.00 USD. Marion was better the next day.

About 10 days later we were in Konya. In what is considered to be a very religious area, the home of Melvana, aka Rumi, and of the whirling dervishes, a university town. Marion was on her way to the bathroom in the lobby when she slipped on the marble steps, injuring her shoulder and experiencing a small, but not insignificant, and extremely painful fracture on her foot. An ambulance was called. Luckily a fellow we had met spoke excellent English and even more fortunately insisted on accompanying us. Did I mention how great the Turks are? The EMT in the back with Marion asked her several times which hospital we wanted, and Marion finally had the presence of mind to say, "The best one." This turned out to be Bashkent University Hospital, where the EMT takes her child.

I'll say here that we later learned that the question was a meaningful one. There are "public" hospitals and there are hospitals that charge in a way that I think is essentially a buy up from what I will call the state rate. Bashkent is a private hospital.

During our 6 or 7 hours at the hospital, Marion had an X-ray and CAT scan of both her shoulder and her foot. She was seen by a shoulder doc. The first foot doc turned out to be an intern who brought in his supervisor who made him give his opinion first, and it was plainly a tough question. The foot doc put Marion's foot in a cast.

The X-Ray machines and CAT scanner did not look a great deal less gleaming than what I have seen here in Seattle. I think we had to sign one or two things. The only intake question we were asked was, "What is her father's name?" Marion's last name is different from mine.

I collected all the credit cards, debit card and cash we had between us to go pay for the care. Attached is the invoice we paid which comes out to about $300 USD, which I had in cash. That was for everything: ambulance, two x-rays, two specialists, a neck brace, two CAT scans, set foot. We did not meet the deductible for travel insurance.

The foot specialist who saw Marion a few days later in Seattle said he would have treated her in the exact manner as the doc in Turkey; and that this is an injury that often leads to complications. Marion is recovered.

I only want to make one kind of editorial comment. From the Turks point of view, we were immigrants.

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Source: NPR Blogs: Planet Money | 15 Oct 2009 | 10:32 am

Jobless claims fall; inflation remains muted

WASHINGTON -- New jobless claims dropped to the lowest level since January and the prices of many household goods stayed low last month, positive signs of stability for the fledgling economic recovery.

Source: L.A. Times - Business | 15 Oct 2009 | 10:32 am

FTSE 100 shares fall (AFP)

AFP - Shares in London ended in the red on Thursday after Swiss mining giant Xstrata scrapped its merger offer for rival group Anglo American.

Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 10:10 am

Kotlikoff Says Banks Need Mutual-Fund Style Guidelines: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 9:57 am

Herrmann Sees Small, Positive Payroll Gain in 3 Months: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 9:56 am

Gayle Says He Is `a Nervous Bull' on U.S. Stocks: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 9:56 am

ING's Knightley Sees 3%-4% Third-Quarter U.S. Growth: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 9:54 am

Gaynor Says Growth Figures May Crimp Stock Rally: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 9:53 am

Leave Out One Burger Every Third Order…

Source: Business Pundit | 15 Oct 2009 | 9:41 am

Wal-Mart to Sell No-Contract Wireless Plans

Wal-Mart announced yesterday that it would begin selling no-contract cellphone plans. The Street has the details:

Straight Talk, which is a partnership with TracFone, a unit of America Movil(AMX Quote), will offer two plans for either $30 or $45 a month and will be available at more than 3,200 Wal-Mart locations starting on Oct. 18.

According to Wal-Mart, the average adult spends $78 on their cell phone bill a month.

Cheaper prices could, of course, take market-share away from carriers like Sprint Nextel(S Quote), MetroPCS(PCS Quote), Virgin Mobile(VM Quote) and Leap Wireless International(LEAP Quote), which offer plans for about $50 a month.

Retailers like Best Buy (BBY Quote) also offer no-contract cell phones in stores.

Source: Business Pundit | 15 Oct 2009 | 9:31 am

U.S. Natural Gas ETF Adjusts Investments on Energy: Audio

Source: Bloomberg - All Podcasts | 15 Oct 2009 | 9:13 am

Lazard's stock drops after CEO dies (Reuters)

Reuters - Shares of Lazard Ltd dropped nearly 3 percent on Thursday following news that its chief executive, legendary Wall Street deal maker Bruce Wasserstein, had died at the age of 61.

Source: Yahoo! News: Stock Markets News | 15 Oct 2009 | 8:51 am

Goldman Sachs Q3 Profits, Performance Bonuses Soar

Goldman Sachs’ stellar third quarter will lead to record bonuses, according to the Wall Street Journal:

The nimble investment banking giant parlayed increased risk taking to cash in on trading and investments with its own money. Results, while not record-setting, demonstrate how the firm continues to distance itself from still-weakened competitors.

Profit ballooned to $3.19 billion, or $5.25 a share – more than triple what Goldman earned during the year-ago period when banks were pummeled by the credit tumult. Goldman also plans to reward its employees well: It set aside $5.35 billion for benefits and compensation during the period.

Goldman’s business from fixed income, currency and commodities trading again bolstered its bottom line, with revenue more than tripling. Revenue from its principal investments soared 55% from second quarter after losing money a year earlier. Investment-banking revenue fell 31% and financial advisory revenue dropped 47%. The bank also posted a revenue gain of $1.26 billion in revenue from principal investments, which includes a gain of $344 million related to its stake in the Industrial & Commercial Bank of China Ltd.

That effort comes as the New York-based company set aside $16.71 billion for compensation and benefits during the first nine months of 2009, which is enough to pay $568,367 to each of its employees. The performance during the third quarter puts compensation on track to beat the record $20.2 billion paid out during the market’s peak two years ago. Levels are already outpacing the $10.9 billion doled out in 2008 at the height of the financial crisis.

Barry Ritholz has an apt reaction to this latest piece of Goldman Sachs news.

Source: Business Pundit | 15 Oct 2009 | 8:40 am

New Jobless Claims Fall. Big Banks Report Profits

By Laura Conaway

Good morning, and welcome back to Thursday's headlines.

UPDATE: New claims for unemployment benefits fell last week by 33,000, to 521,000, the Department of Labor reports. The four-week moving average continued its decline, falling by 9,000 to 539,750.

The Dow Jones industrial average closed above 10,000 yesterday for the first time in more than a year.

Goldman Sachs is reporting profits of $3.19 billion in the third quarter. Citigroup says it made $101 million.

Treasury officials would like more of the big banks to repay their TARP bailout money already, and some of those banks may not want to just yet.

The public option is alive and kicking as Congress considers the next steps in overhauling health care. So is the debate over whether current bills carry stiff enough penalties to persuade uninsured Americans to buy coverage.

Baseline Scenario goes deep on the question of whether the rise of smart people on Wall Street caused the financial crisis.

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Source: NPR Blogs: Planet Money | 15 Oct 2009 | 7:12 am

A Very Special Coupon

Source: Business Pundit | 15 Oct 2009 | 5:47 am