World Business News Headlines for October 23, 2009

Cash-for-bangers scheme eases fall in output

Car production continued to slow last month but at the lowest rate this year, according to new figures.

Source: Latest Business News from Times Online | 23 Oct 2009 | 5:29 am

Home loan approvals rise 77% on last year

The number of mortgage approvals in September rose to levels last seen in early 2008, the British Bankers Association (BBA) said today, in a further boost to the UK housing market.

Source: Latest Business News from Times Online | 23 Oct 2009 | 5:14 am

Record recession for UK economy

The UK economy unexpectedly shrank 0.4% between July and September, making the recession the longest since records began.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 4:36 am

UK economy shrinks in third quarter

The UK economy contracts by 0.4% in the third quarter, in a sign that the deepest recession in a generation is not yet over
Source: Financial Times - US homepage | 23 Oct 2009 | 4:24 am

Whirlpool profit beats estimates on cost cuts (Reuters)

Reuters - Whirlpool Corp reported a higher-than-expected quarterly profit on Friday as cost cuts offset weak sales at the world's biggest appliance maker.
Source: Yahoo! News: Business | 23 Oct 2009 | 4:16 am

Whirlpool profit beats estimates on cost cuts

NEW YORK (Reuters) - Whirlpool Corp reported a higher-than-expected quarterly profit on Friday as cost cuts offset weak sales at the world's biggest appliance maker.

Source: Reuters: Business News | 23 Oct 2009 | 4:16 am

Currencies: Dollar surges against sterling

The dollar jumps higher against the British pound Friday after data showed the U.K. recession had unexpectedly extended into its sixth straight quarter.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 4:14 am

Stock futures point to Wall Street edging higher

(Reuters) - Stock index futures pointed to a slightly higher open for Wall Street on Friday, as investors awaited results from software giant Microsoft and data on home sales.

Source: Reuters: Business News | 23 Oct 2009 | 4:03 am

Stocks poised for early pop

U.S. stocks were poised for a mildly positive open Friday, as investors took an upbeat view on the latest barrage of corporate results and awaited Microsoft's financial report, due out before the opening bell.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 4:03 am

Banks rapped over hardship claims

Banks are told by the Ombudsman to deal fairly with customers who ask for the return of overdraft charges because of hardship.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 4:03 am

Odds Of $3 Gas By Year-End Grow

It has taken less than three months from oil to go from $65 to $81, a 25% increase. Gasoline prices have not moved up as fast but have risen to $2.50. That price could easily move to $3 by the end of the year. Goldman Sachs (NYSE:GS) says it expects crude to move to $100 a [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 4:03 am

Indications: Stock futures gain ahead of earnings, housing data

U.S. stock futures edge higher on Friday, as investors brace for a slew of earnings from Dow component Microsoft, Honeywell and other companies as well as an update on the state of the U.S. housing market.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 4:03 am

UK still in recession after shock Q3 contraction (Reuters)

Reuters - Britain's economy contracted unexpectedly in the third quarter of this year, official data showed on Friday, quashing hopes the downturn was ending and instead marking the longest recession on record.

Source: Yahoo! News: Business | 23 Oct 2009 | 4:02 am

UK still in recession after shock Q3 contraction

LONDON (Reuters) - Britain's economy contracted unexpectedly in the third quarter of this year, official data showed on Friday, quashing hopes the downturn was ending and instead marking the longest recession on record.

Source: Reuters: Business News | 23 Oct 2009 | 4:02 am

Volvo's demand fall 'bottoming out'

Volvo said the fall in demand for its products had bottomed out as it revealed a third-quarter operating loss of SKr3.3bn ($485m) on a 39 per cent fall in its sales. The loss contrasts with the SKr4.6bn...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 3:50 am

Ask the Boss: Matthew Key, head of O2, answers your questions

Q: What do you think the most exciting development in mobile advertising will be?

Source: Latest Business News from Times Online | 23 Oct 2009 | 3:46 am

UK car production slows underpinned by scrappage scheme

The drop in car production in Britain slowed in September but it was not enough help drive the UK economy out of recession during the third quarter.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Oct 2009 | 3:43 am

Euro zone composite PMI hits 22-month high

Output in the euro zone grows in October at the fastest pace since late 2007, while a closely-watched gauge of German business sentiment posts a slight rise this month.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 3:36 am

Spain jobless rate stays at 17.9%

Spain's unemployment rate remains at 17.9% in the third quarter, with the number of jobless now standing at 4.1 million.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 3:34 am

Shock figures show Britain is still in recession

Britain has failed to emerge from recession, as new figures revealed the economy shrank by 0.4 per cent between July and September.

Source: Latest Business News from Times Online | 23 Oct 2009 | 3:33 am

Intel assures Clearwire on investment info: report (Reuters)

Reuters - Intel Corp assured Clearwire Corp it is closely guarding its investment information on the wireless-broadband company after an insider-trading scandal surfaced last week, the Wall Street Journal reported, citing Clearwire chief executive Bill Morrow.
Source: Yahoo! News: Business | 23 Oct 2009 | 3:33 am

Intel assures Clearwire on investment info: report

(Reuters) - Intel Corp assured Clearwire Corp it is closely guarding its investment information on the wireless-broadband company after an insider-trading scandal surfaced last week, the Wall Street Journal reported, citing Clearwire chief executive Bill Morrow.

Source: Reuters: Business News | 23 Oct 2009 | 3:33 am

Mortgage approvals still rising

The number of new mortgages approved by the main UK banks for house purchases is still rising, figures show.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 3:30 am

Asia shares match U.S. rise; China leads the way

Most major equity markets across Asia strengthen, taking their cue from a rally on Wall Street.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 3:30 am

Fortune Magazine To Sharply Cut Publishing Frequency

First Portfolio, the business magazine launched just two years ago by publishing giant Conde Nast, folded. Then, the largest business magazine in America, BusinessWeek, was sold by its parent company, McGraw-Hill (MHP), to Bloomberg for as little as $3 million plus its subscription liabilities. Now, Fortune, started by Time, Inc. founder Henry Luce, will cut [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 3:29 am

Oil price rises above $81 level

The price of oil rises above $81 a barrel, a new high for the year, on hopes the global economic recovery is continuing.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 3:27 am

Russia, Cuba eye Windows 7

Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 3:26 am

Stock futures point to Wall Street edging higher (Reuters)

Reuters - Stock index futures pointed to a slightly higher open for Wall Street on Friday, as investors awaited results from software giant Microsoft and data on home sales.

Source: Yahoo! News: Stock Markets News | 23 Oct 2009 | 3:25 am

Stock futures point to Wall Street edging higher (Reuters)

Reuters - Stock index futures pointed to a slightly higher open for Wall Street on Friday, as investors awaited results from software giant Microsoft and data on home sales.

Source: Yahoo! News: Business | 23 Oct 2009 | 3:25 am

U.K. GDP posts unexpected 0.4% decline

Fall extends the U.K. economy’s contraction to a sixth straight quarter.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 3:20 am

London Markets: Miners lead gains for FTSE 100, Q3 GDP drops

London shares rose on Friday, with miners leading the advance, even after unexpectedly weak GDP data underscored the fragility of the domestic economy.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 3:17 am

Book Sellers Ask Justice Department To Review Amazon (AMZN) And Wal-Mart (WMT) Pricing

The American Booksellers Association wants to know the motivation of Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and Amazon (NASDAQ:AMZN) for selling popular books online for under $10. The industry group has asked The Justice Department to investigate what it believes “constitute illegal predatory pricing that is damaging to the book industry and is harmful to consumers.” The association sent a [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 3:14 am

Commodities Corner: Finding value in undervalued commodities

There are some pretty good commodity bargains out there.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 3:11 am

UK GDP contracts again: analysts' reaction

Britain's economy contracted unexpectedly in the third quarter of this year making the current recession the longest on record. Here is the reaction of some analysts:
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Oct 2009 | 3:06 am

FTSE 100 steady after GDP data

The FTSE 100 was little changed by the failure of the UK economy to exit recession on Friday, after the continued contraction in gross domestic product put pressure on the pound. The benchmark index was...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 2:59 am

Risk

The Federal Reserve proposes that it will “regulate” compensation packages at the top 28 financial institutions in the US. The agency said that its new program is designed to make sure that the incentive compensation policies of banking organizations do not undermine the soundness of their organizations. The Fed will strongly encourage pay packages that [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 2:49 am

Sterling slides as UK GDP falls 0.4%

Sterling dropped sharply and gilts advanced on Friday after data showed that the UK economy unexpectedly contracted in the third quarter.Gross domestic product fell by 0.4 per cent in the three months...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 2:45 am

Argentina launches new debt deal

Argentina plans a new debt swap, hoping to end a saga that started when it defaulted on its debt eight years ago.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 2:44 am

Britain is still in recession: decline continues

Britain hopes of escaping recession were dashed today after figures showed that the economy is stuck in its worst recession on record.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Oct 2009 | 2:38 am

Amazon (AMZN): Innovation’s Reward

The founders of the large web properties of Web 1.0 are all gone now save one. Yahoo!’s (NASDAQ:YHOO) chief Yahoo!s have very little to do with the company, although one of them, Jerry Yang, made a brief and troubled attempt to run the company recently. The founders of eBay (NASDAQ:EBAY) and AOL retired a long [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 2:37 am

Rebooting your business model

When I moved to New York City from Calcutta, I wasn't planning a catering career. I had come to earn a master's degree in lighting design from Parsons the New School for Design. But as a foodie, I was dismayed by the city's Indian eateries: The good ones were pricey, while the more affordable restaurants served two-day-old curries.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 2:36 am

Britain is set to climb out of recession

New figures today are expected to show that Britain has finally emerged from recession following the worst downturn for 30 years.

Source: Latest Business News from Times Online | 23 Oct 2009 | 2:32 am

World markets gain as earnings spur recovery hopes (AP)

AP - World stock markets rose Friday, spurred by another batch of optimistic quarterly reports from major companies in the U.S. and Asia even as worries remained that this year's rally has overshot reality.

Source: Yahoo! News: Stock Markets News | 23 Oct 2009 | 2:31 am

Michael Jackson's mad money

We all know that Michael Jackson was one of the greatest entertainers who ever lived. But when it came to how he conducted his business and financial affairs, was he smart, lucky, or mad? As depicted in the Fight Over Michael's Millions , he managed to be all at the same time.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 2:31 am

Second 24-hour mail strike starts

Delivery and collection staff at Royal Mail start a 24-hour strike, as part of a nationwide dispute over modernisation.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 2:28 am

High-definition demand boosts BSkyB

British Sky Broadcasting strengthened its position as the UK's largest pay-television operator as higher than expected demand for high-definition television services saw the group add a net 94,000 new...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 2:17 am

BSkyB profit grows 75% as demand improves

U.K. satellite television group British Sky Broadcasting on Friday reports a 75% rise in net profit for the fiscal first quarter, helped by rising demand for high-definition TV and an increase in the number of customers buying broadband and telecom packages.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 2:17 am

JAL faces $8.8 billion excess debt if liquidated: source

TOKYO (Reuters) - Liabilities at Japan Airlines Corp would exceed its assets by as much as $8.8 billion if Asia's largest airline by revenues were liquidated, a source with direct knowledge of the matter said on Friday.

Source: Reuters: Business News | 23 Oct 2009 | 2:13 am

Australia clears takeover by Chinese miner Yanzhou Coal

Australia has approved the biggest takeover by a Chinese miner followng months of wrangling two resubmissions and a series of failed moves by the Asian nation for Australian miners.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Oct 2009 | 2:13 am

Amazon profit surges 69%, thanks to Kindle

It may not have won the book price war (yet), but Amazon defeated Wall Street expectations on Thursday, reporting a 69% surge in profit in the third-quarter, led by sales of the Kindle e-reader.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 2:10 am

5 evil things credit card firms can (still) do

The credit card reform bill tries to help cash-strapped customers, but companies are just coming up with new ways to boost profits.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 2:08 am

BSkyB adds 94,000 customers as profits soar

BSkyB, the satellite broadcaster, gained 94,000 new customers in the first quarter of the financial year as profits rose by 40 per cent.

Source: Latest Business News from Times Online | 23 Oct 2009 | 2:07 am

AIG 'one very thorny situation'

In the end, pay czar Kenneth Feinberg's hardest case was AIG.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 2:02 am

Tax cuts, Medicare could kill the economy

Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 1:58 am

Media Digest (10/23/2009) Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters: Japan Airlines faces $8.8 billion in excess debt if liquidated. Reuters: Amazon (NASDAQ:AMZN) beat Wall St. estimates. Reuters: GM’s CEO will get a pay raise. Reuters: Nokia (NYSE:NOK) sued Apple (NASDAQ:AAPL) over patent infringement. Reuters: Bank of America (NYSE:BAC) hit back at compensation cuts by the pay czar. Reuters: American Express (NYSE:AXP) numbers beat forecasts. Reuters: CIT (NYSE:CIT) and Goldman [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 1:57 am

Danone shares gain after third-quarter results

French food producer Danone says Friday it expects to deliver a like-for-like sales growth close to 4% in the second half of the year, as it reported third-quarter sales of 3.78 billion euros ($5.7 billion).

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 1:53 am

HD demand boosts BSkyB profit

BSkyB reports a 40% rise in first quarter profits, helped by strong demand from new customers for high definition viewing.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 1:49 am

Europe Markets: European shares climb after updates, broker moves

European shares rise, with the move adding to a week of choppy action for stocks.

Source: MarketWatch.com - Top Stories | 23 Oct 2009 | 1:48 am

Nokia sues Apple over iPhone

Cell phone giant Nokia Corp. filed a lawsuit against Apple Inc. on Thursday, alleging that its iPhone infringes on its patents.
Source: Business and financial news - CNNMoney.com | 23 Oct 2009 | 1:45 am

Asia shares rise on earnings

HONG KONG, Oct 23 - Asian shares nudged higher on Friday on the back of upbeat earnings reports from the United States and Asia while the dollar resumed a broad slide after a Fed official indicated US...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 1:33 am

This Week’s Links

Consumerist on how to identify astroturfers and front groups.

The Weakonomist on what insider trading is, and why it’s illegal (via Steadfast Finances).

Politico on Matt Drudge and the dollar’s decline.

Keith Ferrazzi on who to know so that you can meet powerful people.

Jonathan Fields on how to be indispensable.

Source: Business Pundit | 23 Oct 2009 | 1:27 am

Asia Markets And Europe Open (10/23/2009)

Markets in Asia were higher. The Nikkei rose .2% to 10,283. The Hang Seng was up 1.4% to 22,516. China Life (NYSE:LFC) and Sinpoc (NYSE:SNP) rose. The Shanghai Composite was up 1.9% to 3,108. At the open in Europe, the FTSE was up .8% to 5,247. The Dax rose 1% to 5,820. The CAC 40 rose 1% to 3,857. Data [...]

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Source: 24/7 Wall St. | 23 Oct 2009 | 1:26 am

BSkyB profits jump as thousands of 'stay at home' Brits opt for high definition TV

Broadcaster reported at 40pc jump in firstquarter profits as 287000 take up high definition television service in three months.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Oct 2009 | 1:22 am

Fight for the future of fishermen

Young fishermen in Scotland face an uncertain future, with fish prices plummeting, but one group is fighting to change that.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 1:16 am

Movie fans might have to wait to rent new DVD releases

Some major studios, grappling with sharply declining DVD revenue, are considering a policy to make new releases initially available for purchase only.

For those who like renting movies, Hollywood may soon have a message: Prepare to wait.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

As Windows 7 launches, tech sector waits and hopes

Releases of past Windows systems created demand for related products and services. But are consumers in the mood to spend?

Can Windows 7 repair Microsoft Corp.'s reputation and trigger enough sales to pull the technology sector out of its financial funk?

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Imperial Capital seeks to raise $150 million in IPO

Boutique investment banking firm Imperial Capital Group Inc. has filed to go public, hoping to tap investors' improved appetite for new stock issues.
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 1:00 am

CalPERS reviewing tie with Apollo Management after steep losses

The California Public Employees' Retirement System is reviewing its relationship with private equity firm Apollo Management in the wake of steep losses on investments placed with the New York asset manager...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 1:00 am

Imperial Capital seeks to raise $150 million in IPO

Boutique investment banking firm Imperial Capital Group Inc. has filed to go public, hoping to tap investors' improved appetite for new stock issues.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Peter Chernin's role in possible Comcast deal for NBC Universal prompts speculation

The former News Corp. president could emerge as a powerful player at NBC Universal if Comcast succeeds with its bid. But he also could be helping to create a stronger rival to his longtime employer.

Peter Chernin, who stepped down as president of media conglomerate News Corp. this summer, is back in the spotlight. That didn't take long.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

As Windows 7 launches, tech sector waits and hopes

Releases of past Windows systems created demand for related products and services. But are consumers in the mood to spend? ...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 1:00 am

Bank bonuses are in Fed's cross hairs

The regulator seeks to limit rewards for risky practices at the 6,000 institutions it oversees.

Escalating the government's intervention in corporate pay practices, the Federal Reserve moved Thursday to restrict the ability of thousands of banks to pay bonuses in an effort to curb risky practices widely cited for helping to trigger the global financial crisis.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Wilmington hauls off and hits truck expressway plan with lawsuit

Residents worry that the project will bring more cargo traffic and with it more pollution and illnesses.

California transportation officials say that a new truck expressway is needed to handle an expected post-recession trade boom at the ports of Los Angeles and Long Beach, the nation's busiest seaport complex. But the neighborhood that has already borne the brunt of port pollution is setting up a legal roadblock to stop it.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Dole's share price less than expected as company returns to market

It sells a 41% stake at $12.50 a share, less than the $13 to $15 it had estimated. Analysts say investors were concerned by warnings that David Murdock would keep a firm grip on the business.

Investors snapped up shares of Dole Food Co. on Thursday when the world's largest produce company returned to the public equity market after a six-year absence, but the stock price was less than it had expected.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

CalPERS reviewing tie with Apollo Management after steep losses

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Former Vivendi execs Jean-Marie Messier, Edgar Bronfman Jr. ordered to stand trial

Vivendi's former CEO Jean-Marie Messier and other former top executives including Edgar Bronfman Jr. have been ordered to stand trial, accused of misleading investors about the company's health while they...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 1:00 am

House panel backs creation of Consumer Financial Protection Agency

The House Financial Services Committee votes 39 to 29 in support of the agency, which would have the power to write new consumer protection rules for a host of activities involving loans or credit.

A House committee voted to create a federal agency to protect consumers in the financial marketplace, but several days of often-contentious debate showed that obstacles still confront one of the centerpieces of President Obama's overhaul of industry regulations.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Home buyer tax credit draws scrutiny

As some urge that the first-time buyer tax credit be extended, Congress hears testimony about questionable claims.

This year's $8,000 federal tax credit for first-time home buyers has attracted as many as 90,000 ineligible claimants -- including a 4-year-old child -- raising questions about efforts to extend the popular program.

Source: L.A. Times - Business | 23 Oct 2009 | 1:00 am

Wilmington hauls off and hits truck expressway plan with lawsuit

Residents worry that the project will bring more cargo traffic and with it more pollution and illnesses. California...
Source: RSS feed - channel BNPaperBusiness | 23 Oct 2009 | 1:00 am

New York Times sees smaller loss

The New York Times Company, reports a smaller-than-expected loss in the third quarter, sending shares up 23% to a one-year high.
Source: BBC News | Business | World Edition | 23 Oct 2009 | 12:46 am

GM CEO to get raise in compensation: report

(Reuters) - General Motors Chief Executive Fritz Henderson will get a raise in his compensation package to $5.45 million under new rules advocated by the U.S. pay czar, Bloomberg said, citing a person familiar with the matter.

Source: Reuters: Business News | 23 Oct 2009 | 12:29 am

Market firm ahead of long weekend

The New Zealand sharemarket was firm today ahead of the long holiday weekend.There was good volume in Pyne Gould Corp existing shares today with 3 million trading and the price ending at 44.The company raised $30 million in...
Source: nzherald.co.nz - Business | 23 Oct 2009 | 12:25 am

UK recession timeline: the story so far

The UK entered recession in the second quarter of 2008 before the economy plunged to its low point in the first quarter of this year with a 2.5pc contraction. Here is the story so far.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Oct 2009 | 12:16 am

Dollar steady in US75c range

The New Zealand dollar was steady today due to little direction from global markets.The dollar traded at a high of US75.98c and low of US75.56c, closing at US75.61c at 5pm from US75.25c at the same time yesterday.BNZ Capital...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 11:47 pm

Home loan affordability worst in nearly a year

Rising house prices and interest rates combined in September to weaken home loan affordability to its worst level since December 2008, the BNZ Home loan Affordability Measure shows.The apparent recovery in the housing market and...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 11:37 pm

Britain's worst recession since the 1930s expected to have ended experts say

After five consecutive quarters of contraction economists predict growth of 0.2pc during the third quarter of the year.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 Oct 2009 | 11:18 pm

Bridgestone to shut NZ plant, 275 jobs to go

The Bridgestone tyre factory in Papanui, Christchurch, is closing with the loss of 275 jobs.The company's owners in Japan announced the closure of two plants today, blaming intensifying cost competition globally. The other plant...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 11:01 pm

Cheap Reads: 6 Tips to Save on Books (Deal of the Day)

Buying a book at the suggested retail price might be a bigger mistake than judging it by its cover.

Flat sales, savvier readers and the emergence of new players in the retail and online marketplace are keeping the pressure on sellers to offer more books at a discount.

Book sales have held steady over the past year. Consumers spent roughly $2 billion on books in August 2009, about the same as August of last year, according to the National Retail Federation, which tracks sales.

And shoppers are hunting for bargain (and often secondhand) reads, while retailers are dropping prices even on new titles to make sales, says Daniel Butler, the NRF’s vice president of merchandising and retail operations.

Last week, Wal-Mart (WMT) started an online bookseller battle when it announced it would offer 10 bestsellers for $10 each on its web site. Amazon.com (AMZN) promptly matched that deal. And by late Friday, both retailers had dropped their prices again, Wal-Mart to $8.99 and Amazon to $9.

Target (TGT) joined the fray Monday, offering the same selection for $8.99 on its site. For two books on the list, Sarah Palin’s “Going Rogue” ($29) and Stephen King’s “Under the Dome” ($35), the online price cut amounts to discounts of 69% and 74% respectively.

“Wal-Mart is so huge they can afford to lose money on a few books,” says Larry Witt, an analyst with Morningstar who covers online commerce. The retail giant needs the attention of extreme specials to bulk up its online business, which is “woefully behind” that of competitors Amazon and Target, Witt says. (Wal-Mart will not be offering the same deals in stores.)

Booksellers are also betting customers will buy more than one deeply discounted bestseller, says Scott Testa, an assistant professor of business administration at Calibri College in Radnor, Pa. “Retailers know consumers hate to pay for shipping,” he says. A customer who buys Amazon’s $9 copy of Dean Koontz’s “Breathless” might be tempted to spend another $16 on other items during that transaction to get free shipping on the whole order.

Don’t fret if your reading list doesn’t match your retailer’s short list of discount bestsellers. Try these six ways to snag your next book for less:

1. Join a loyalty club

Many bookstores send coupons to members of their reward programs. Joining a free program can yield savings for even occasional buyers. But don’t buy into a pay-for club unless you’re a true bibliophile. Barnes & Noble (BKS) members would need to buy $250 in paperbacks -- which are sold at a 10% discount through the club -- just to break even on the $25 membership fee.

Here’s what some big chains offer:

* Barnes & Noble Membership ($25/year): Members receive a 40% discount on hardcover bestsellers (determined by store sales), a 20% discount on adult hardcover books and a 10% discount on most other items in the store. Members also receive regular emails with coupons and other offers.

* Books-A-Million Millionaire’s Club ($20/year): Members receive an additional 10% discount on purchases. Members also receive regular emails with coupons and other offers.

* Borders Rewards (FREE): Earn $5 in rewards for every $150 in qualifying purchases at the store. Members also receive regular emails with coupons and other offers.

2. Hunt for coupon codes

Booksellers of all sizes routinely offer coupon codes for free shipping or a discount of 10% or so, says Mike Allen, the founder of deal tracking site Shopping-Bargains.com. (Also try RetailMeNot.com and Savings.com.) For example, Barnes & Noble is offering 20% off one item through Nov. 11 for new customers who use code C3X7J9K at checkout. At eCampus.com, save $2 on most ebooks through Dec. 31 with code EBOOKBUCKS.

Social networking sites like Facebook and Twitter can also turn up coupons. For sellers, those networks offer a way to reel in new customers and reward loyal ones, says Xavier Helgesen, a co-founder of BetterWorldBooks.com, a used book seller. The site recently posted a 20% off coupon for its Facebook fans. (For more on how social-networking sites can save you money, read our story.)

3. Visit the library

It’s old news, but local libraries still offer an opportunity to read your favorite titles for free. And you may not have to wait as long as you think; many libraries have programs in place to get bestsellers in your hands faster. Vigo County Public Library in Terre Haute, Ind., has a Bestseller Express program, which allows borrowing for seven days with no renewals. (Put your name on the hold list to wait for a copy under the regular, two-week borrowing term.)

Many libraries are expanding their digital shelves, too, with free e-books you can download to your computer or electronic reader for a few weeks. (Libraries pay per title, so there may still be a wait.) Readers can try Sony’s Library Finder to find e-book titles at local libraries.

4. Buy used

Used copies -- even for brand-new bestsellers – are typically sold at bargain prices, says Allen. Borders.com charges $17.47 for a new copy of Dan Brown’s “The Lost Symbol.” At second-hand site Half.com, the cheapest “like new” used copy is $11.99 -- 31% cheaper. Hunt for your favorite titles there, and at Alibris.com and CheapestBookPrice.com.

Check for more used book sales at your local library, says Francine Trevens, a former chairwoman of The Greater New York Independent Book Publishers Association, a trade group. She also likes the selection at thrift stores. “Very often whole libraries are for sale,” Trevens says.

5. Check with the publisher

Many will make you a deal on a direct sale, especially if it’s a smaller company or an older title, says Trevens. At Scholastic, the publisher of the "Harry Potter" series, get 10% off and free shipping on orders of $20 or more through Oct. 31 when you use coupon code SSMSRB at checkout.

6. Trade your titles

Swap sites like PaperbackSwap.com, TitleTrader.com and Bookins.com let readers trade in titles on their bookshelves for others they’d like to read. After listing a few titles, users will get credit for each one another member requests. (They’ll also typically get a few credits for joining.) Credits can be redeemed for other books on the site. Depending on the site, users will pay shipping to send or receive a book, but not both.

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Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

Will Recession Forever Scar Young Investors? (Money and Your Mind)

People who lived through the Great Depression were shaped thoroughly by the experience — so much so that many of them never gave up habits of extreme thrift, aversion to financial risk and even hoarding behavior.

As we begin the long climb out of the Great Recession, a question presents itself: How will this experience shape this generation’s minds and habits going forward?

A pair of recent studies may shed some light. The cognitive effects of financial shocks are long-lasting — and for those who go through them in early adulthood, can shape one’s entire outlook on life.

Take the findings of Paola Giuliano and Antonio Spilimbergo, presented in a recent National Bureau of Economic Research paper. Using data from the General Social Survey and matching it up with data on regional recessions in the United States between 1972 and 2006, the authors found that “individuals growing up during recessions tend to believe that success in life depends more on luck than on effort, support more government redistribution, but are less confident in public institutions.”

But what was truly striking was that this finding only held if the person was in his or her “formative years,” between 18 and 25, during the financial shock. Being exposed to a recession before the age of 17 or after the age of 25 had no effect in the data they studied.

How can this be? It’s not that people’s beliefs can’t change — and certainly not that an individual’s beliefs might not change. But social psychologists have found that humans, in the aggregate, are flexible and responsive to social circumstances when they’re young, but become far less flexible as they get older. Old dogs stick with the tricks they know.

To see just how substantially our experiences can influence our future behavior, take a look at another recent NBER paper. Ulrike Malmendier of the University of California, Berkeley and Stefan Nagel of Stanford University looked at the investment behavior of people who experienced the Great Depression in young adulthood. They found that these “Depression babies,” once they reached midlife, had only about a 13% participation rate in the stock market. Understandably, these folks were largely spooked out of the market for life.

By way of comparison, the cohort that came of age during the post-World War II boom, by the time they reached midlife, had a stock-market participation rate more than twice as high as that of the Depression babies.

And this pattern wasn’t restricted to the Great Depression; it applied to lesser shocks, as well. The paper finds that, in general, people who have lived through periods of bad stock market returns report lower willingness to take financial risk. They also are less likely to participate in the stock market, and, if they do invest in the stock market, invest a lower fraction of their liquid assets in stocks. (Similarly, people who have experienced high inflation are less likely to hold bonds.)

For example, young households in the early 1980s, having experienced the dismal stock returns of the 1970s, had low stock-market participation rates. For older households in the same period, however, the low returns of the 1970s were offset in their minds by their lifetime experience of having received high returns in the 1950s and 1960s.

Malmendier and Nagel found that this pattern flipped following the boom years of the 1990s. In this period, younger households recalled higher lifetime average returns and thus were more likely to participate in the stock market, allocated more to stocks, and reported lower risk aversion than older households.

The lesson: We’re slaves to what’s known as “availability bias.” We form our predictions about the world based on the data most readily available to us — on what’s happened to us personally, or what’s happened to our friends, or what we’ve read in the papers or seen on TV.

How scared should we be to fly? Statistically, the answer is “not very.” But, on takeoff, we’re still likely to think of any recent plane crashes we’ve seen on the news.

Our participation in the stock market seems to work in roughly the same way. If every investor were always looking at the totality of historical data, people’s heads would remain cool. But since we’re all hemmed in by the borders of our own experience, we make heated decisions based more on our own pasts than on any reasonable assumptions about the future.

Members of Generation Recession, however, might keep this in mind: By being caught up in the past, the Depression babies missed out on the boom market of the 1950s and 1960s. That doesn’t mean anyone should count on boom times ahead. Just that they should remember the past doesn’t always determine the future.

Ryan Sager writes the blog Neuroworld at TrueSlant.com.

Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

Broker Talk: Buy on the Dips (Broker Talk)

Skeptics of the market’s steep rally are pointing to negative indicators such as the rising unemployment rate as evidence that the market is over-extended. But unemployment numbers tend to lag an economic recovery, these brokerages say, and other indicators suggest the economy is actually gaining steam.

Who’s Talking: Liz Ann Sonders, Chief Investment Strategist, Charles Schwab

The Gist: Key economic indicators will continue to deliver better-than-expected results, which could catapult the economy forward through year-end.

Sonders likens current market conditions to “coiled springs” that could lead to greater-than-expected growth and an extension of the market rally. But the market won’t move up in a straight line, says Sonders. Instead there will be shallow and short dips in performance similar to what happened in the market at the end of September.

The dips, says Sonders, are a good “opportunity for investors who need to raise equity allocations up to target levels.” For example, a recent disappointing jobs report pushed the market lower but was followed by a reversal after other economics reports turned out better than expected. Sonders says she believes that trend will continue.

There are other indicators to be optimistic about. Media and investors often focus on the unemployment rate, she says, but the indicator is “perpetually lagging” and “typically doesn’t peak until well after a recession has ended.” However, on a more positive note, the inventory/sales ratio fell for the fifth consecutive month, to its lowest level since September 2008. Wholesale inventories fell for the 12th straight month in August and wholesale sales rose 1%. Plus, retail sales gained 0.4% in September, the first gain in a year. All these components put together make for a “popping” of the coiled spring, says Sonders.

As demand picks up, manufacturers will need to produce more, and having slashed inventories and workers during the downturn, that means they’ll need more employees. Additional hiring will hopefully convince consumers to be more confident, creating a “feedback cycle” to boost overall growth, says Sonders.

Sonders admits there is still a much to worry about the future of the market. A number of companies are issuing cautious guidance and some are reporting disappointing earnings. There’s also concern about the value of the dollar and the possibility of inflation and rising debt taking a toll on the stock market. But the pessimism actually keeps Sonders “relatively optimistic” about the market in the short-run, she says. Macroeconomic problems related to the dollar and U.S. debt may arise in the future, but it’s “unpredictable,” says Sonders, and the best way to fight unpredictability is a diversified portfolio.

Who’s Talking: Jeffrey Saut, Chief Investment Strategist, Raymond James

The Gist: After a seven-month climb in the equities market, naysayers are still calling warning of a “sucker’s rally.” But any upcoming market corrections will be short and shallow.

Saut says he finds it “interesting” that despite a tremendous rally in stocks and encouraging statistics, the “negative nabobs” are still calling this period a bear market “sucker’s rally.” The real suckers, says Saut, are the bears who “sat out” the seven-month rally in the stock market.

With credit spreads falling back to levels last seen before the fall of Lehman Brothers in September 2008, Saut says the S&P 500 could climb to at least 1200. There will eventually be a “healthy correction,” says Saut, but the main force in the market is “up.” According to Riverfront Investment Group, the level of selling on the market, as measured by its Selling Pressure Index, has reached a new 12-month low. As for the nature of the correction, so far the market corrections have been brief and shallow, largely because portfolio managers have kept too much cash on the sidelines and underplayed the “bull run,” he says. Now those fund managers have to contend with performance risk, bonus risk and job risk as they approach the year’s end (when year-long performance is measured). This is yet another reason to believe that stocks will be higher at year-end even with a potential short-term pullback, says Saut.

Those who point to unemployment as a sign of stock market losses should be reminded that employment is “at the back-end of the cycle” meaning that its uptick lags earlier signs of recovery. Even with 1) deflated consumers accounting for 70% of the economy, and 2) rising unemployment, Saut says economic recovery is driven by corporate profits, not consumption. The profits lead to investment, which fosters capital spending and eventually hiring. “That’s the typical sequence and we think it plays that way this time,” he says. Good thing corporate profits are surging.

Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

SmartMusic: Five New CDs (Consumer Action)

New releases this month from rising stars and seasoned performers point to the continuing strength of the American singer-songwriter tradition. Alongside hip young Brandi Carlile’s latest CD are records from Texas troubadour Lyle Lovett and country royalty Rosanne Cash. There’s also a new record from hit-makers Train, and the soundtrack to New Moon, which is a veritable survey of current indie rock favorites.

Brandi Carlile

Give Up the Ghost

Viewers of ABC's Grey's Anatomy may have become familiar with singer-songwriter Brandi Carlile over the last few seasons; several of her songs have been featured on that hit series and on its spin-off, Private Practice. But Carlile has been building a fan base since the release of her self-titled debut in 2005. Her songs of love and loss manage to be full of feeling yet not bombastic. The wide-ranging Rick Rubin (who’s worked with everyone from Johnny Cash to Metallica) produced Give Up the Ghost and he pays particular attention to Carlile’s range, which can go from whispery croon to full-throttle anguish in a heartbeat. Carlile wrote many of the tracks, and her musical collaborators Tim and Phil Hanseroth wrote others. Elton John provides a guest vocal on the frisky “Caroline,” but the album’s sound is really all Carlile’s, from the driving opening cut, “Looking Out,” to the poignant ballad “Pride and Joy,” in which her singing builds from soft regret to an almost rapturous lament.

Lyle Lovett

Natural Forces

Since his debut record in 1986, Lyle Lovett has released more than a dozen albums, all of them featuring his singular songwriting, which can range from the elegiac “Pontiac,” to the sinister and humorous “L.A. County,” to the stomping “She’s Hot To Go.” Lovett studied journalism at Texas A&M, and his songs display the keen observances of a natural reporter open to the quirks, pitfalls and fleeting triumphs of life. In his career, Lovett has worked in swing (with his Large Band) and smaller ensembles, and here he hews more closely to a rock-inflected country-western feel. “Natural Forces” alternates between the bluegrass twang of “Pantry,” the contemplative country folk of “Whooping Crane” and the driving title song, a sardonic look at romance and happiness. As on his previous records, Lovett has written most of the material here, but he also includes a cover of Vince Gill’s poignant “Sun and Moon and Stars,” about the emotional treachery of self-imposed solitude.

Rosanne Cash

The List

Before Rosanne Cash moved into her recent introspective mode, she was one of the biggest names in country music in the 1980s, with a string of number-one hits. Now, she returns in force to her country, or Americana, roots with The List—a 12-track compilation plucked from the 100 songs Cash’s late father, Johnny Cash, considered country’s best. Songwriters here include Merle Haggard, Bob Dylan, Buck Owens and Hank Williams among others. Cash enlisted backup vocals on selected tracks from the likes of Bruce Springsteen, Elvis Costello, Rufus Wainwright and Jeff Tweedy (of Wilco), who bring a nice texture to the vocals, though Cash’s rich alto needs little accompaniment. Among the stronger cuts are “Miss the Mississippi and You,” Dylan’s “Girl from the North Country” and Buck Owens's "Heartaches by the Number.” If Cash doesn’t quite make a listener forget Patsy Cline’s rendition of “She’s Got You,” she still brings her own quiet remorse to the ballad.

Various Artists

Twilight: New Moon Soundtrack

Last year’s hit vampire flick, Twilight, spawned an album featuring hot musical acts and became one of 2008’s best sellers. In this soundtrack, for the coming sequel, New Moon, the producers smartly cast a wider net in their choice of music. The songs here will appeal to both the young female fans who devour the vampire novels that inspired the films, and reel in other listeners, too. The cuts are not available on other albums and include the most noted independent music acts around: Thom Yorke (of Radiohead), Death Cab for Cutie, the Killers and Black Rebel Motorcycle Club. So, even if a wide swath of music fans might not see the movie, which opens here on November 20, they’ll probably still appreciate its music. This collection is more reserved than the first. But the songs are good throughout, including the catchy opening track from Death Cab for Cutie (“Meet Me On the Equinox”) and the moody electronica of Thom Yorke’s “Hearing Damage.”

Train

Save Me, San Francisco

Train’s music has a certain elusive quality in that you probably recognize many of its hits songs (such as “Calling all Angels” or “Cab”) but can’t quite place the group performing them. There’s kind of an everyman quality to its output, which makes Train’s music a bit hard to categorize. The Grammy Award-winning group’s music is a combination of tuneful pop with guitar-driven rock that might evoke, to older ears, the sounds of Journey or even, to slightly younger ones, the Jayhawks. Not that there’s anything wrong with that. Train’s new album, following lead singer Pat Monahan’s solo album, Last of Seven, is catchy from the outset, from the title first track, to the single “Hey Soul Sister” and to ballads such as “Parachute.” Expect to hear these and other melodious songs on soundtracks, television series and jukeboxes in the coming months even if you can’t quite remember the name of the group whose music you’re enjoying.

Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

The New Early Jump on Holiday Shopping

Christmas on...Independence Day? Determined to avoid a repeat performance of last year's lackluster sales, retailers have moved up "Christmas creep" even earlier than usual, stocking shelves with gifts during the summer months.

Kmart and Toys "R" Us, for example, launched holiday promotions in July for the first time. How to time and hit the best deals:

Early Isn't Everything

Even though red and green decorations were in stores before Labor Day, experts say the biggest bargains will pop up closer to December. "They're not giving away the house -- yet," says Marshal Cohen, of market research firm NPD Group. Early promos are more about getting shoppers' attention than they are about offering killer deals, he adds. That said, sale strategies vary by category, and the products hit hardest by the Great Recession -- apparel, luxury goods -- are likely to be discounted early and often.

Watch for Lean and Mean

Retailers will keep inventory down this year, experts say, so the more popular items will likely be harder to find as the holidays approach. Stores will stock less variety, too, meaning consumers looking for uncommon items may need to shop sooner. Also, since holiday promos started early, some goods will languish on the shelves for months, says Cohen, who warns folks to watch out for products that look "a little shopworn." n Surf for Sales. Online retailers fared pretty well in the recession -- e-commerce sales increased 13 percent last year, according to Forrester Research -- so many e-tailers will feel less pressure to match the deals at their brick-and-mortar counterparts. But on "Black Friday" after Thanksgiving and other major sale days, going online can offer a big leg up, as Web sales often start at midnight, hours before stores open.

Read Your Mail

To avoid mass discounting, more retailers are sending frequent customers special offers by mail or e-mail, says Stacy Janiak, U.S. retail leader for consulting firm Deloitte. To benefit, sign up for mailing lists or loyalty clubs for your favorite stores. Of course, then you'll have to open junk mail, says Janiak, "rather than pitch everything in the garbage."

Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

Oil Fields of Dreams

UNTIL RELATIVELY RECENTLY, Big Oil gave little thought to sub-Saharan Africa beyond the coast of Nigeria and Angola. That's changing rapidly after a significant find off the Atlantic coast of Sierra Leone, where both Anadarko Petroleum (APC) and U.K.- based Tullow (TUWLY) have exploration licenses, and another strike in Uganda, where Tullow operates.

Their stocks have jumped sharply this year, mostly on the prospect of world-class fields. Tullow shares, up over 100%, have returned to 2008 highs set when crude was about twice today's $78 a barrel, but Anadarko, up 73%, remains below its 2008 high. So the questions are, how much oil is there, and is it reflected in the stock prices?

This prospect will be more definitively appraised as new wells are drilled over the next 12 months, but there is a persuasive case that the potential could top a billion barrels in West Africa. If that proves out, as bulls predict, then shares of Tullow and Anadarko remain undervalued, even after the run-up. Tullow's main trading is in London (TLW.UK), where the stock closed Friday at £12.36; Tullow's U.S.-traded shares, each equal to 10 U.K. shares, finished at 202. Anadarko closed around 67.

One of the wells generating the excitement, called Venus, hit more than 45 net feet of hydrocarbons off the coast of Sierra Leone, Anadarko said last month. It's 40%-owned by the U.S. company and 10% by Tullow. Few holes have been poked in the new West Africa prospect, so Venus' location is key, creating a possible bookend that -- with the large Jubilee field at the prospect's other end off the coast of Ghana, discovered in 2007 -- suggests the entire 1,100-kilometer coast could hold hydrocarbons. The other recent significant strike, made by Tullow, is in the Lake Albert area of Uganda.

It's difficult to estimate, but "Venus shows there is a working petroleum system and opens up the potential for more discoveries [along the Sierra Leone-Ghana coast] to be full of oil," notes Christopher Brown, the lead analyst for sub-Saharan Africa for Wood MacKenzie, an Edinburgh-based energy-and-resources consultancy. At minimum, the exploration licenses to drill in that region are more valuable than they were six months ago, he adds.

Wood MacKenzie doesn't comment on how much oil is in the entire prospect, but Anadarko and Tullow's analysis says the Jubilee field, in which they own 24% and 35% stakes, respectively, holds anywhere from 600 million to 1.8 billion barrels.

Earlier this month, that field received a big boost from ExxonMobil (XOM), which is reportedly battling China National Offshore Oil Corp., or Cnooc, to buy effectively a 23.5% stake held in Jubilee by Kosmos Energy at a price of $4 billion. The Jubilee field is expected to come online in the third quarter of 2010 and eventually produce 120,000 barrels a day.

"I don't know if you can get a better vote of confidence than that," says Oswald Clint, a London-based Sanford C. Bernstein analyst with an Outperform rating on both Tullow and Anadarko. Given Exxon's traditionally conservative approach, it suggests Jubilee is profitable at significantly less than the current oil price.

The bookended wells, says Sreejith Banerji, a Vontobel portfolio manager and former oil and gas engineer, mean "it's more than speculation [now]....There is a very high chance of a significant resource." Banerji still calls Tullow's stock cheap. "It's doubled, but off very depressed levels." Vontobel, which according to Bloomberg owns about 140,000 shares, hasn't sold into the rally.

Anadarko's global head of exploration, Bob Daniels, a 25-year oil-patch veteran and geologist, says the company is looking at 30 well leads similar to Jubilee. Using the low-end estimate for Jubilee, and Anadarko's average 33% well success rate, "you can easily get to six billion barrels," he says.

It could take years to prove that number, if ever, and it isn't reflected in the stock prices. The oil majors ignored the area, so Anadarko and Tullow managed to secure "unmatched" acreage in this new play, adds Stephen Thornber, a money manager who specializes in energy for Threadneedle in London, which is maintaining an over 10 million-share stake in Tullow. Meanwhile, Tullow found oil in Uganda, where few thought there was any, he notes.

In that East African nation, Tullow has found about 700 million barrels of oil -- though the entire amount hasn't been audited -- not including the Ngassa well find announced last month. Tullow's head of exploration, Angus McCoss, says there's probably another 1.5 billion barrels to be found in Uganda and that Tullow is looking for a partner to bring its Ugandan finds into production. The company's entire drilling needs are financed through the end of 2010, and he adds Tullow's total production should grow from 60,000 barrels of oil equivalent a day to 200,000 BOE a day "in the short- medium term."

What's the potential value of this to Tullow and Anadarko? Bernstein's Clint, who holds a Ph.D. in geophysics, says Anadarko's stock is cheaper than Tullow on price-to-cash-flow metrics and multiples based on reserves. At year end 2008, Anadarko reserves were 2.3 billion BOE, compared with 314 million BOE for Tullow.

However, since Tullow is much smaller-a $16 billion market capitalization, half the size of Anadarko -- Tullow is heavily leveraged to West Africa. Should a gusher come, the U.K. stock could rise sharply again, and more than Anadarko. Conversely, Tullow is more vulnerable if and when dry holes are drilled and could fall more than Anadarko. Indeed, last Thursday brought news of a dry hole drilled off Côte d'Ivoire, and Tullow's share price duly fell 2%.

Clint estimates that wells being drilled in Ghana, Côte d'Ivoire and Sierra Leone over the next 12 months could bring 1.36 billion BOE net to Tullow and 0.92 billion BOE for Anadarko. That's 64 times Tullow's 2009 production and 4.5 times its reserves. His base-case net asset valuation is £14 a share for Tullow in 12 months, which doesn't include new leads to be drilled in West Africa.

Anadarko's larger reserve base means this same success would equate to four times current production and 40% of proven reserves, says Bernstein, whose target price is 85.

Some analysts say Tullow's stock fully reflects what is known. The caveat is clear with any oil explorer: "If they drill dry holes, the stock will fall," says Threadneedle's Thornber. "If we thought the story was exhausted we would have trimmed, but there is still upside."

Political risk is another worry. The nations involved range from stable countries to fledgling democracies. Côte d'Ivoire is troubled by political tensions and violence, notes Philippe de Pontet, an analyst for political-risk consultant Eurasia Group. Even relatively stable Uganda has been hit by political turmoil recently. That can make drilling more difficult, but political uncertainty isn't unusual for oil-rich areas.

For Tullow and Anadarko, there are likely to be ups and downs, but this once- overlooked West Africa prospect should bring much more investor clamor to both over the next few years.

The Bottom Line
Anadarko and Tullow stocks have jumped sharply this year, mostly owing to new oil finds. If bulls are right about the production potential, the shares could rise more.

Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

Do Mutual Funds Cheat on Returns? (By the Numbers)

Mutual funds don’t lack for reporting requirements. Ask anyone who has struggled to un-wedge a bulky prospectus from his mailbox. An army of math-checkers – fund company compliance officers, independent accountants and government auditors – keep the numbers that fill those reports trustworthy. If a fund you invest in says it made 20% year-to-date, you can believe it.

Don’t be as confident about the long-term returns boasted in advertisements. A new study makes clear how misleading they can be.

Investors have long known about “incubator” funds and how they distort returns through a phenomenon known as survivorship bias. A mutual fund family wishing to launch a new fund may quietly nurture several at a time. The funds that beat market averages are eventually marketed while ones that do poorly get closed. Like dead men, abandoned incubator funds tell no tales.

The result is an upward bias in returns for funds that made it out of incubation, and in average returns for fund families that incubate, as well as for the broad mutual fund universe. Past returns, more than any other factor, attract investor dollars, studied have long shown. And the number of dollars under management decides the profits of mutual fund families.

Government regulators frown on fund incubation but fail to prevent it. In response to a citizen query in 1997, the Securities and Exchange Commission stated that “incubator fund performance should not be included in a mutual fund’s prospectus in the absence of extremely clear disclosure explaining the sponsor’s purpose in establishing the incubator fund.” But it defined incubator funds as ones that aren’t registered with the SEC and that exist for the purpose of generating performance records. Fund families can side-step the definition by registering incubator funds but keeping mum about them--not sending details to Morningstar and other data-reporting companies, and relying on employees for seed money. They can also launch a fund in each of several different asset categories, instead of several funds in the same category, to reduce the appearance of purposely launching more funds than they need.

Richard Evans, a professor at the University of Virginia’s Darden School of Business, studied the effects of incubator funds over the decade ended 2005 and reported his findings in a paper scheduled for publication early next year in the Journal of Finance. He found that 23% of new funds were incubated, and that these outperformed non-incubated funds by an average of 3.5 percentage points a year, adjusted for risk. After the incubator funds were hatched to the public, however, the performance edge disappeared. This finding stands opposed to a longtime claim of the mutual fund industry that it uses the incubation process to identify promising managers and strategies. If they were indeed promising, the handsome returns ought to have continued. Moreover, fund families that incubated turned managers over more frequently that families that didn’t, hardly suggesting that incubating families were cultivating long-term winners.

Three more findings from Evans’s paper: First, fund families understandably prefer to incubate within fund categories where their existing offerings aren’t attracting much new money. Second, as expected, investors chase after the higher returns of incubated funds with their deposits, oblivious to the tendency of the outperformance to fizzle. In other words, the process achieves its apparent aim. Third, incubation is most common among fund families that sell primarily through brokers.

That last finding should cast further doubt on the old broker argument that investors should choose funds based on performance and not sales charges.

Source: SmartMoney.com | 22 Oct 2009 | 10:00 pm

Calpers reviewing relationship with Apollo: report

NEW YORK (Reuters) - Calpers, the biggest U.S. public pension fund, is reviewing its business relationship with Apollo Global Management, examining fees, performance and the "relationship as a whole," the Wall Street Journal reported on Thursday, citing documents outlining the review.

Source: Reuters: Business News | 22 Oct 2009 | 8:56 pm

'Defining year' for Silver Fern Farms

Meat cooperative Silver Fern Farms has reported a 16 per cent rise in full year net profit to $43.6 million, boosted by its settlement with PGG Wrightson.Revenue for the 12 months to the end of August rose 1 per cent to $2.015...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 7:00 pm

Vector expects 'tough conditions'

Electricity and gas distributor Vector is not buying the green shoots recovery story, saying it expects operating conditions to be tough this financial year."Despite recent media coverage of improved sentiment and green shoots,...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 6:45 pm

Eric Watson aims at US milk market

Businessman Eric Watson is taking aim at the United States milk market using New Zealand farming practices.A business Mr Watson is developing in the United States wants to raise up to US$150 million ($200.5m) for the initial roll-out...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 6:30 pm

Nearly 1.2 million join KiwiSaver

Almost 1.2 million people have joined the KiwiSaver retirement savings scheme since it started two years ago, Revenue Minister Peter Dunne says.There was a 54 per cent increase in people joining in the second year, he said.The...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 6:11 pm

American Express profit beats estimates

NEW YORK (Reuters) - American Express Co posted stronger-than-expected quarterly earnings on Thursday as the credit card company trimmed costs, consumer spending declined at a slower pace and credit losses were lower than forecasts.

Source: Reuters: Business News | 22 Oct 2009 | 6:08 pm

Amazon delivers twist in plot with Kindle-inspired profit surge

Growing sales of Amazon.com’s Kindle e-book reader helped to boost third-quarter profits at the online retailer by 69 per cent.
Source: Latest Business News from Times Online | 22 Oct 2009 | 6:03 pm

Zurich insurance loses personal data of thousands of British customers

Zurich Insurance, the UK arm of the Swiss insurer, admitted yesterday that it had lost a tape containing the confidential personal details of 51,000 of its British customers.

Source: Latest Business News from Times Online | 22 Oct 2009 | 6:01 pm

Survival of the fittest for retailers

Both Debenhams and Sir Philip Green’s Arcadia have produced solid financial results despite an awful economic backdrop. What both have in common is that they are investing in their businesses, despite the tough outlook, and are positioning themselves for future growth.
Source: Latest Business News from Times Online | 22 Oct 2009 | 6:01 pm

The dragon roars again after new figures put China’s output on a growth hat-trick

Confirmation that China is well on the road to economic recovery came yesterday with official figures showing that growth in output accelerated between July and September.

Source: Latest Business News from Times Online | 22 Oct 2009 | 6:01 pm

Obama hits mark with attack on 'fat cat' bankers

More proof today, as if it were needed, that Barack Obama's administration "gets it". The drastic pay cuts that Ken Feinberg, the President's pay tsar, is set to unveil for executives at companies where the US retains a bailout...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 6:00 pm

Distinguished directors honoured

Two long-serving company directors have been recognised for their exceptional service to New Zealand business.Dame Margaret Bazley and Paul Hargreaves have been made Distinguished Fellows of the NZ Institute of Directors.Distinguished...
Source: nzherald.co.nz - Business | 22 Oct 2009 | 6:00 pm

Mexican cartel hit in US drugs swoop

The US justice department said its operation against the narcotics organisations south of the border involved 3,000 agents, more than 1,000 arrests and law enforcement actions in more than 19 states
Source: Financial Times - US homepage | 22 Oct 2009 | 5:48 pm

Business Advice 2.0: An Interview with Bizmore’s Alice Hill and Jeff Davis

confused

What are some cash-flow options available other than traditional banks?

What is the biggest business blunder management is making regarding social media?

Should our website be ‘mobile compatible’?

If you’re a business owner or manager, questions like these probably cross your mind on a daily basis. How do you find answers for them? Ask someone on your team? Consult an article? Hunt it down in a forum?

Most importantly, do you usually find what you were looking for?

The people behind Bizmore know that finding intelligent answers to business questions can be a challenge. So they created a searchable Q&A website covering even the thorniest of business-related questions. Users generate questions, and their peers—many of whom are CEOs or experts in their fields—offer informed, germane answers.

Bizmore’s commitment to its niche (the audience is comprised of owners and managers of small- to medium-sized businesses) keeps topics relevant. They supplement their Q&A content with staff-written features, giving readers a complete interactive resource. And unlike other answers sites, you don’t risk running into juvenile or spammy content.

Vistage International, an executive coaching and networking group, launched the site in July. Former CNET executive and veteran tech writer Alice Hill founded the site; Jeff Davis, who edited Business 2.0 magazine for nearly a decade, is Bizmore’s Editor in Chief.

Business Pundit recently caught up with Hill and Davis to discuss Bizmore’s history, uses, and implications.

BP: What inspired you to come up with the idea for Bizmore?

Hill: The idea came from our parent company, Vistage. Vistage is a leadership organization that’s been around since the 1950’s. It brings together a community of peer groups, mentors and experts to talk about their business and get answers from peers. That’s how you really grow your business and solve important challenges. We thought it would be great to bring this same experience to an online location, so people can tap into the same peer experience from anywhere, at anytime.

The small business (SMB) audience is such a huge part of our economy–they constitute 70% of all U.S. jobs and more than 50% of the GDP. And small businesses are underserved, so we thought: Can we create something online that has that same in-person, really intimate power of a leadership organization, but gives people a way to connect online and get answers and advice from other peers and experts?

That seemed like an exciting thing to do, an untapped audience and a lot of people with a lot of questions. It seemed like using a Q&A platform would be a great way to do something different than the usual expert articles and blogs that are out there right now.

BP: What do you mean by untapped audience?

Hill: Right now, if you are a manager or owner of a business, it’s really hard for you to get personal advice without having to hire a consultant, a lawyer, an accountant, or another expert. You can read articles and do research, but it’s really hard to have that conversation back and forth, especially online.

Online, you can comment, blog, have someone write back, or write an article, but there’s no back-and-forth. That’s why we thought that building a Q&A site would enable you to ask a question, then have experts, peers, and other people from the around the world answer, to help you look at the different perspectives that different voices bring to the issue.

BP: What’s the main thing that differentiates you from a LinkedIn group or a blog written by an expert?

Hill: As far as blogs go, Jeff likes to say we’re taking the comments in a blog and turn them upside down. You start your discussion with a question, with a person that has the issue, whereas a blog is more writers thinking up topics for the day.

If you’re a writer, you’re hoping that you’re picking something timely, or something that resonates. But it’s different when the user says that I don’t understand what’s going on, says I have a specific issue and there’s one that I need help with. It’s user-driven, but then the answers can be articles, experts, peers, all jumping in to help the user. It’s many to one, instead of one to many.

We’re not the same animal as LinkedIn. It’s hard on LinkedIn to just get advice, experts, and content in one place. LinkedIn is more about your career, your profile, and your contacts, but they’re not focused as an advice platform for a specific audience.

Davis: This is a very different world here. Our content is about recognizing that businesspeople are a bunch of experts. Our community is based on recognizing that high-level managers and executives of businesses know things about running businesses that are very hard for traditional business journalists to replicate.

We hand the microphone over to people inside of companies who do one thing really well. We get them to explain one method or management tactic that works for them that others can learn from.

There’s a lot of practical management and business advice that’s being put into practice inside of successful companies small, medium, and large. All we’re really trying to do is get inside of those companies and get them to share their wisdom.

BP: Can you tell us more about your experts?

Davis: We’re not the first website to offer up business experts. What’s different is that we handpick and share who our experts are, and they’re chosen purely with editorial objectives in mind.

It’s an independent editorial platform. There’s no issue or question that is out of bounds for these guys. As long it’s a relevant, compelling issue or topic, we’re going to try to find experts with the very best wisdom to share on that topic.

Our experts agreed to answer a handful of questions each week on our site. In exchange for that original content, we display their biography and some links to their books, white papers, and anything else that’s relevant to their topic. It’s a way for them to display their brands on the site, while we give users access to their great wisdom.

Our experts have been very enthusiastic. Many of them have come from a world of promotion where people call them up and ask them stuff, people write articles. You’d be surprised how few of them are interested in doing that the old way.

Instead of a blog, a call, or an article, I just offered the experts a chance to engage with an eyes-on business audience of senior managers, executives, and business leaders. I gave them a chance to directly contact those people.

These experts have jumped at the opportunity to have this kind of exchange. They’re tired of having one-way conversations with an audience. They’re willing to try out a new Q&A platform to get a more direct personal engagement with people they’re tried to reach.

BP: How do you envision Bizmore in its most successful form?

Hill: We want to attract as focused an audience as possible. We want to make sure there’s no solicitation on the site. We want to keep the quality high as we grow as big as possible.

There’s also a huge international audience, outside the US, who are trying to figure out how to get business inside the US. Especially with the recession, there are also so many American companies who are trying to figure out how to diversify inside the US. The Internet is a phenomenal way to reach people internationally that is hard to do in other models.

We’ll also build out the features in the site over time. We’re talking about adding a marketplace so that people can promote their companies in a way that’s not soliciting, but gets the word out about their companies, job boards, and business-related things.

I think that at the core, we just want to have the best, most relevant living archive of business advice. The audience will constantly improve on it. We’re hoping that as more and more questions get added, the site becomes more useful to every person who jumps on.

Explore Bizmore for yourself. Read Q&As anonymously, or sign up for a free membership to gain full access to the site. You’ll join 15,000 Vistage CEOs, twelve distinguished industry experts, and a host of other users.

Source: Business Pundit | 22 Oct 2009 | 5:32 pm

Fed pay rules to rein in risk-taking

In a landmark moment for US finance, the Federal Reserve unveiled draft rules for bankers’ pay extending the reach of regulators deep into the compensation practices of leading financial firms
Source: Financial Times - US homepage | 22 Oct 2009 | 5:08 pm

Aviva boss Andrew Moss admits affair with colleague's wife

The boss of Britain's biggest insurance firm has been told his job is safe despite admitting to a potentially compromising affair with an employee who is married to one of his senior executives.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 Oct 2009 | 5:05 pm

Amazon soars above Street view, shares skyrocket

SAN FRANCISCO (Reuters) - Amazon.com Inc on Thursday posted quarterly profit that handily beat Wall Street estimates and said holiday sales could come in far above expectations, sending its shares up 15 percent to their highest level in nearly a decade.

Source: Reuters: Business News | 22 Oct 2009 | 5:03 pm

BP could outbid Exxon Mobil for Kosmos Energy's Ghanaian oil field

Exxon Mobil's bid for 4bn £2.4bn of prize oil fields in West Africa appeared under threat of competition last night following reports that BP could put in a higher offer with Ghana National Petroleum Corp.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 Oct 2009 | 4:51 pm

Write-Offs: 10.22.09

$$$ The SEC's Tough New Offensive on Insider Trading [BW]

$$$ 40 Under 40: Business's Hottest Rising Stars (Jonathan Gray, John Arnold, Meredith Whitney, Erin Burnett, Keith Meister). [Fortune]

$$$ Georgetown student advertises for a personal assistant [WaPo]

$$$ Phil Goldstein's First Amendment Case Heads To Massachusetts' Highest Court [AR]

$$$ Larry Fink Enraged That Sorkin Wrote BlackRock's Balance Sheet Was Loaded With Subprime [BI]

$$$ Erin Burnett was in a hula-hooping contest this morning. [NBC]

Sponsored Topics: Business - U.S. Securities and Exchange Commission - Erin Burnett - Washington Post - Fortune
Source: Dealbreaker | 22 Oct 2009 | 4:50 pm

Presented By:

Source: Dealbreaker | 22 Oct 2009 | 4:50 pm

Wal-Mart says cuts, slower growth to be positives (AP)

AP - Wal-Mart Stores Inc.'s CEO and President Mike Duke promised investors Thursday that the retailer's aggressive price-cutting will not hurt its stock price, even as the company issued a modest forecast for U.S. expansion this year and next.
Source: Yahoo! News: Business | 22 Oct 2009 | 4:48 pm

U.S. cuts pay at bailed out firms, BofA hits back (Reuters)

Reuters - The U.S. pay czar on Thursday slashed compensation for top earners at seven bailed-out companies for the final two months of the year, and was immediately slammed by the country's largest bank which claimed the cuts could send talent fleeing.

Source: Yahoo! News: Business | 22 Oct 2009 | 4:43 pm

U.S. cuts pay at bailed out firms, BofA hits back

WASHINGTON (Reuters) - The U.S. pay czar on Thursday slashed compensation for top earners at seven bailed-out companies for the final two months of the year, and was immediately slammed by the country's largest bank which claimed the cuts could send talent fleeing.

Source: Reuters: Business News | 22 Oct 2009 | 4:43 pm

Peltz adds a twist to battle for Cadbury

The expiry of an agreement by shareholder Nelson Peltz to refrain from publicly criticising Kraft throws a wild card into the US food group’s battle to buy Cadbury
Source: Financial Times - US homepage | 22 Oct 2009 | 4:33 pm

Chinese writers seek redress on Google e-books

A Chinese copyright group is demanding talks with Google over compensation for Chinese authors who have had their books scanned into the US company’s electronic library
Source: Financial Times - US homepage | 22 Oct 2009 | 4:32 pm

Stocks rise as financial, consumer stocks gain (AP)

AP - Investors encouraged by a good batch of earnings reports and forecasts jumped back into stocks after a two-day slide.

Source: Yahoo! News: Stock Markets News | 22 Oct 2009 | 4:02 pm

IRS Draws The Line On Tax Credits

The administration's commitment to transparency is coming along pretty well these days. For example, it's becoming clearer and clearer what the standard is for considering anti-fraud measures for the home buyer tax credit program. Evidently we have breached the tolerance level for the number of individuals currently in kindergarten who were approved for the $8,000 credit on their tax returns. In addition to the one 4-year old who did his or her part to help the housing recovery efforts, 581 other individuals under the age of 18 were granted the credit as well.

Sponsored Topics: Tax - Internal Revenue Service - Tax credit - United States - Accounting
Source: Dealbreaker | 22 Oct 2009 | 3:52 pm

Bank of America: People Would Be Banging Down The Doors To Work Here If It Weren't For Ken Feinberg And His Freaky Ass Rules

Mary Thompson reports that Bank of America has taken the opportunity provided by the Comp Cop's crackdown on pay to note that "people want to work at Bank of America." They really do! But now, in light of the new rules, they might seek employment elsewhere. Also, this.

Sponsored Topics: Bank of America - Business - Financial services - Banking Services - Banks and Institutions
Source: Dealbreaker | 22 Oct 2009 | 3:44 pm

How the major stock indexes fared on Thursday (AP)

AP - Investors encouraged by a good batch of earnings reports and forecasts jumped back into stocks Thursday after a two-day slide. Stocks posted big gains as investors snapped up financial shares after several banks said they weren't seeing as many loans go bad. The market extended its gains in afternoon trading when Wal-Mart Stores Inc. said it expects sales to grow this year and increase at a faster pace next year.
Source: Yahoo! News: Stock Markets News | 22 Oct 2009 | 3:38 pm

Caption Contest Thursday

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Sponsored Topics: Contest - Arts - Programming - ACM - Songwriting
Source: Dealbreaker | 22 Oct 2009 | 3:18 pm

Bank of England will not target asset bubbles say deputy governor Paul Tucker

The Bank of England's leading voice on finance last night all but ruled out suggestions that the central bank will in years to come target asset bubbles.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 Oct 2009 | 2:48 pm

SEC brings charges over 'free lunches' (AP)

AP - Federal regulators on Thursday accused a real estate funds promoter and former brokerage executive with bilking mostly elderly investors of about $12 million by using "free lunch" seminars to lure them to invest.
Source: Yahoo! News: Stock Markets News | 22 Oct 2009 | 2:37 pm

Earnings Duel: American Express vs. Capital One (AXP, COF)

American Express Company (NYSE: AXP) and Capital One Financial Corporation (NYSE: COF) have both reported earnings this afternoon. We saw estimates rise in recent days as many lenders were discussing better credit metrics starting to be evident. These numbers are mixed on the credit metrics but look amazing on some fronts. American Express reported third quarter [...]

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Source: 24/7 Wall St. | 22 Oct 2009 | 2:34 pm

Hamilton on Boeing, Schwartz on Commercial Real Estate: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 2:30 pm

Nokia takes on iPhone in legal fight

Nokia, the world’s biggest mobile phone maker, opened a new front in its battle with Apple by filing a lawsuit claiming that its rival’s flagship iPhone infringed the Finnish company’s patents
Source: Financial Times - US homepage | 22 Oct 2009 | 2:21 pm

Benmosche To His Flock: Ken Feinberg Can't Touch You

AIG's bashful CEO Bobby Benmosche put the fear lurking inside each one of his employees to rest yesterday. When faced with the question 'what is Ken Feinberg going to do to my paycheck', BB made it crystal clear to his troops that they had nothing to fear. The rule of the Pay Czar does not extend very deep into the house the US taxpayer (re)built.

"It is important that all of you know that the Special Master's jurisdiction is quite limited, and we expect Feinberg's upcoming decisions on compensation to cover only the top 25 employees at AIG," Benmosche said in an internal memo distributed around the company late on Wednesday.

If there is one thing Benmosche has been consistent and adamant about since starting it's ~~turning AIG around as fast as possible to repay the US taxpayer~~ making sure his people get paid competitively. But the real question is what does the guy at the top think about how his pay package stacks up. His predecessor made good on $1/yr.

Sponsored Topics: Kenneth Feinberg - American International Group - Special Master - Company - US
Source: Dealbreaker | 22 Oct 2009 | 2:19 pm

Amazon (AMZN) Q3 Sales Up 28%, Strong Holiday Forecast: Shares Rocket Higher

Shares of Amazon (NASDAQ:AMZN) rose nearly 10% after hours to $101.70, well above the stock’s 52-week high. Revenue increased 28% to $5.45 billion in the third quarter, compared with $4.26 billion in same quarter last year. Net income increased 68% to $199 million, or $0.45 per share, compared with net income of $118 million, or $0.27 per [...]

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Source: 24/7 Wall St. | 22 Oct 2009 | 2:16 pm

Total warns of energy insecurity

Total has warned politicians that they risk accelerating an oil supply crunch if they enact environmental policies that deter investment in oil and gas before enough viable alternatives are available
Source: Financial Times - US homepage | 22 Oct 2009 | 2:08 pm

Dick Bové Will "Do It Live" No Longer

Screen shot 2009-10-22 at 2.19.40 PM.png You people have really done it now. Yesterday Dick Bové went on CNBC right after Wells Fargo had announced earnings, at which time he described the bank as a "standout" and one that had its loan losses "under control." Boves followed this up by downgrading WFC from neutral to sell. No big D, she thought, but apparently some people begged to differ! DiBo was taken to task for the sharp sell off in Wells (and the market in gen) and now, because the relentless bitching just will not quit, she's decided she's going to pack up her act and leave. According the Rochdale analyst, we will no longer be treated to her analysis of a company she hasn't yet analyzed. Now, she's going to start doing her homework before appearing on television to make recommendations and what's more? She's no longer going to play the game where Michelle Caruso Cabrera names a company and she blurts out the first word the comes into her head.

Prominent banking analyst Dick Bove, who caused a stir Wednesday with seemingly contradictory remarks on Wells Fargo, has decided he'll no longer provide immediate earnings commentary on air.
"I'm not going to do it anymore. I'm going to have to see the numbers before I go on air," Bove told Dow Jones Newswires Thursday. "It creates an untenable situation."

Sponsored Topics: Wells Fargo - Dow Jones & Company - Bank - Financial services - Business
Source: Dealbreaker | 22 Oct 2009 | 1:55 pm

Former Vivendi executives face trial

Investigation centres on allegations of market manipulation, distributing false information, and misuse of corporate funds during a period of daring acquisitions to turn Vivendi into a global media giant
Source: Financial Times - US homepage | 22 Oct 2009 | 1:43 pm

The Apple of Nokia's eye

The Finnish phonemaker has watched the iPhone succeed as it loses market share in North America - now it's fighting back.
Source: Business and financial news - CNNMoney.com | 22 Oct 2009 | 1:33 pm

McKinsey partner’s arrest casts shadow

Anil Kumar’s arrest left his fellow partners at the elite consulting firm completely in the dark for several critical hours about the actual charges he was facing
Source: Financial Times - US homepage | 22 Oct 2009 | 1:29 pm

FCC votes for net neutrality rules

Today the Federal Communications Commission voted to stop Internet service providers like Verizon and AT&T from tampering with Web traffic and picking favorites. Steve Henn reports.
Source: Marketplace | 22 Oct 2009 | 1:26 pm

Exercises In The Transitive Property

There are more fun times ahead for Raj Rajaratnam. Forget about proving claims of insider trading are baseless. A New Jersey lawsuit wants RR to answer for the blood allegedly on his hands. Evidently Raj and his family's foundation transferred millions to the Tamil Rehabilitation Organization over the years. Which is a bit of a problem considering the Treasury designated the organization as a front for the Tamil Tigers and the US, EU, and India tend to file things related to the TTs under the header 'terrorist organizations'. There is little doubt the Tamil Tigers have done some pretty horrific things over time and somebody should pay. And now, thanks to the world learning about $20 million in illicit gains, that person may be Raj.

Sponsored Topics: India - Liberation Tigers of Tamil Eelam - New Jersey - European Union - Tamil Tiger
Source: Dealbreaker | 22 Oct 2009 | 1:18 pm

Russia drops $22.5bn BoNY Mellon lawsuit

Russia has dropped its $22.5bn lawsuit against Bank of New York Mellon after agreeing an out-of-court settlement
Source: Financial Times - US homepage | 22 Oct 2009 | 1:12 pm

Getting deep into 'SuperFreakonomics'

In "Freakonomics," journalist Stephen Dubner and economist Steven Leavitt explored economics and human behavior. Kai Ryssdal talks to the two about their sequel, which applies the law of unintended consequences to prostitutes and global warming.
Source: Marketplace | 22 Oct 2009 | 1:10 pm

Wal-Mart Outlines 2010-2011 Growth Plans (WMT)

Wal-Mart Stores, Inc. (NYSE: WMT) has been having its analyst meeting this week and we now have a release from the company showing its growth plan next year. This also updates the cap-ex fiscal year ending on Jan. 31, 2011. As Wal-Mart is one of the stocks that the rally has left behind, it is [...]

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Source: 24/7 Wall St. | 22 Oct 2009 | 1:06 pm

Will the clampdown on bonuses work?

Does this government clampdown on top Wall Street executives' pay do anything to discourage the behavior that landed us in this mess to begin with? Ashley Milne-Tyte explores who's really making money for these firms.
Source: Marketplace | 22 Oct 2009 | 1:04 pm

U.S. could lose its triple-A rating

A Moody's analyst said the U.S. government may soon have to downgrade its triple-A ranking, which would force the U.S. to pay higher interest rates to borrow. What does this mean for Treasury bond investors? John Dimsdale reports.
Source: Marketplace | 22 Oct 2009 | 12:59 pm

A look at economic developments around the globe (AP)

AP - A look at economic developments and activity in major stock markets around the world Thursday:
Source: Yahoo! News: Stock Markets News | 22 Oct 2009 | 12:36 pm

Felix Salmon Has Some Bones To Pick With Charlie Gasparino's New Book

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Screen shot 2009-10-22 at 1.01.24 PM.png
1. Aesthetically, it's a piece of shit. Also, Salmon wouldn't use the pages to line his birdcage.

Screen shot 2009-10-22 at 1.01.06 PM.png
2. Too much Charlie.

Screen shot 2009-10-22 at 1.01.17 PM.png
3. That the people publicizing it in included materials that might help sell the thing.

4. This wasn't a Tweet (yet) but just speculation: that it wasn't written by Sorkin?

Sponsored Topics: Salmon - United States - Recreation - Fishing - Outdoors
Source: Dealbreaker | 22 Oct 2009 | 12:19 pm

Behind the Scences of the Auto Bailout

By David Kestenbaum

If you, like me, were wondering what was going on behind the scenes when GM and Chrysler were fighting for their lives, we now have one insider's account. The government's "car czar" Steven Rattner tells his story in Fortune magazine.

Rattner has harsh words for both companies.

At GM's Renaissance Center headquarters, the top brass were sequestered on the uppermost floor, behind locked and guarded glass doors. Executives housed on that floor had elevator cards that allowed them to descend to their private garage without stopping at any of the intervening floors (no mixing with the drones).

Saving Chrysler, he writes, was a tougher call.

Larded up with debt, hollowed out by years of mismanagement, Chrysler under Cerberus never had a chance. We marveled, for example, that Chrysler did not have a single car that was recommended by Consumer Reports.

The question for us -- and ultimately, the President -- was whether any restructuring could save Chrysler.

Rattner does not discuss what I think is the big question. How much of the bailout money will taxpayers lose? (Evan Newmark at the WSJ wonders the same.)

Rattner spoke at the Brookings Institution yesterday, you can grab the full audio here.

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Source: NPR Blogs: Planet Money | 22 Oct 2009 | 12:18 pm

The Right Insurance Policy for You (The Motley Fool)

The Motley Fool - If you are single, or one-half of a two-income, no-dependents household, you probably won't need much life insurance, if any. With a little planning, you can establish a low-risk savings fund to cover funeral costs, and invest the money you would have paid for insurance premiums.
Source: Yahoo! News: Business | 22 Oct 2009 | 11:49 am

Butler Sees `Small Rally' for Drug Stocks by Early 2010: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 11:34 am

Wall Street Goes Back To Washington

Many of Wall Street's biggest investment firms are stepping up their political donations, after taking a hiatus while receiving government funds. The Wall Street Journal (sub req'd) reports:

New fund-raising data show that Morgan Stanley's political action committee made a total of $110,000 in political contributions in September. The only other month this year the company made donations was July, when it gave $43,000. About 60% of the September donations went to Republicans, who generally support Wall Street's efforts to block the regulations proposed by Mr. Obama and congressional Democrats, a shift to the minority party from July.

The fund-raising arm of Bank of America donated $30,500 to Republicans in September and $13,500 to Democrats. The company gave a large amount in February, but otherwise has been quiet this year. Goldman Sachs made $37,500 in donations through its PACs in September, after donating $23,000 up until that month.

President Obama's regulatory reform legislation is currently making its way through Congress, the first parts of it were approved by the House Financial Services panel this week.

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Source: NPR Blogs: Planet Money | 22 Oct 2009 | 11:33 am

Is free KFC chicken worth a long wait?

After attempting a free grilled chicken dinner giveaway in May, Kentucky Fried Chicken is trying it again, hoping for better results. Kai Ryssdal talks to Marketplace Senior Editor Paddy Hirsch, who attended the first chicken run.
Source: Marketplace | 22 Oct 2009 | 11:33 am

One year after leaving Wall Street

Last year, Marketplace's Jeremy Hobson interviewed two Wall Street workers who had just lost their jobs at the start of the financial crisis. Hobson checks in on them again and gets their thoughts one year later.
Source: Marketplace | 22 Oct 2009 | 11:31 am

Shame on You, Monster Energy!

But thanks for changing your mind. Here’s the story:

Source: Business Pundit | 22 Oct 2009 | 11:30 am

Taiano Discusses Outlook for American Express Earnings: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 11:28 am

Becker Says Credit Suisse Can Sustain Trading Revenue: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 11:20 am

Federal Judge Determined To Keep Housing Recovery Going

Given the recent debate about the FHA's overall financial condition, you'd think people would jump at the opportunity to slow down the pace of FHA-insured loans. Especially when the FHA believes they've identified a lender signing them up for loans they shouldn't be touching. However, after hearing the details of ~~one or two~~ twelve alleged violations Ideal Mortgage Bankers made against the FHA, a federal judge decided to dismiss the request for a temporary restraining order which would have prohibited the lender from making new FHA insured loans.

Sponsored Topics: Federal Housing Administration - Loan - Mortgage - Business - United States
Source: Dealbreaker | 22 Oct 2009 | 11:12 am

Forst Says Las Vegas Is Resilient, Will `Come Back’: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 11:11 am

Sandler Sees Traditional Stock Investors Using ETFs: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 11:07 am

F5 Networks Raised to `Neutral’ at UBS: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 11:05 am

Homeless American Girl causes a stir

A new homeless American Girl doll has been causing controversy with homeless advocates and others. Sally Herships explores what's causing the media uproar.
Source: Marketplace | 22 Oct 2009 | 10:49 am

FTSE 100 closes lower amid global recovery concern (AFP)

AFP - The leading stock exchange closed lower on Thursday, extending losses on fresh concerns about the pace of the global economic recovery.

Source: Yahoo! News: Stock Markets News | 22 Oct 2009 | 10:38 am

Green Says China's 9% Economic Growth Is `Reasonable': Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 10:18 am

Bert Ely Says Broad Banking Reform Is Unlikely: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 10:18 am

Rates on 30-year loans inch up to 5 percent (AP)

AP - Rates for 30-year home loans have inched up, hitting 5 percent for the first time in nearly a month after bond yields edged up.
Source: Yahoo! News: Business | 22 Oct 2009 | 10:17 am

Silvia Sees 10.2%-10.3% U.S. Unemployment Next Spring: Audio

Source: Bloomberg - All Podcasts | 22 Oct 2009 | 10:16 am

Nokia Sues Apple for Patent Infringement on iPhone

nokia

Nokia is suing Apple for using mobile technology patents without consent, infringing ten patents in the process. The BBC has more:

Nokia said it had not been compensated for its technology, and accused Apple of “trying to get a free ride on the back of Nokia’s innovation”. The ten alleged patent infringements involve wireless data, speech coding, security, and encryption. Apple’s shares dipped after news of the action broke.

The breaches applied to all models of the iPhone since its launch on 2007, Nokia added. Finland’s Nokia said that it had agreements with about 40 firms – including most mobile phone handset makers – allowing them to use the firm’s technology, but that Apple had not signed an agreement.

“The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for,” said Ilkka Rahnasto, Vice President, Legal & Intellectual Property at Nokia. “Apple is also expected to follow this principle.”

He added that during the last two decades, Nokia had invested approximately 40bn euros (£36.2bn; $60bn) on research and development. Earlier this month, Nokia posted its first quarterly loss in a decade amid falling sales.

This sounds like a desperate move by Nokia to slow Apple or regain market share. What stopped them from suing earlier?

Source: Business Pundit | 22 Oct 2009 | 9:45 am

Reviews: Windows 7 Practical, Useful, “More Than What Vista Should Have Been”

Image: Seattle Weekly

PCWorld has a nice summation of Windows 7 reviews. Go to the full article to see the details. Some excerpts:

On Wednesday, New York Times tech columnist David Pogue gave Windows 7 the thumbs up as well, despite the fact that “it’s still copy-protected, it still requires antivirus software, and its visuals still aren’t consistent from one corner to another.” His bottom line: “looks like 7 is a lucky number after all.”

Walt Mossberg of the Wall Street Journal had an early review on Windows 7 a couple of weeks back, and his bottom line is that “Windows 7 is a very good, versatile operating system that should help Microsoft bury the memory of Vista and make PC users happy.”

CNET also looked into Windows 7 with a skeptical eye, noting that “strong design and Microsoft don’t always go together, but they do in Windows 7.” However, they say “performance is still hit-or-miss in Windows 7,” concluding that “Windows 7 is more than what Vista should have been, it’s where Microsoft needed to go.”

In a review released on Thursday, the folk over at IT Pro had a look at whether Windows 7 is fit for business. Their verdict: they are “more than happy to recommend Windows 7 … for business,” especially as “the user interface is attractive and good for productivity.”

Source: Business Pundit | 22 Oct 2009 | 9:22 am

New Job-Loss Claims Rise. Plus: China Looks For Oil In U.S. Waters

By Laura Conaway

Good morning, and welcome to the Thursday reading list.

New claims for unemployment benefits rose last week by 11,000 to 531,000, the Department of Labor reports. That was more than analysts expected. The four-week moving average continued falling, to 532,250 last week from 533,000

Chronic unemployment remains a problem. Today's reports shows signs that more people are exhausting their regular benefits without finding new work. Those rolls dropped by 98,000 to 5.92 million. As of Oct. 3, the number of people on extended unemployment benefits climbed to 3.86 million from 3.83 million.

In other news, Macroblog makes the case that we're in for a jobless recovery. (Hat tip: Calculated Risk.)

President Obama will steer what's left of the $700 billion TARP bailout for bigger banks -- something like $140 billion -- to smaller banks in an effort to jumpstart lending to local businesses. The Obama administration is also directing the seven biggest bailout recipients to slash pay for their top 25 earners.

China is negotiating a deal to drill for oil in U.S. territory, in the Gulf of Mexico.

Ethiopia is asking for $285 million in emergency food aid for 6.2 million people facing famine. Oxfam says that the imported aid helps, but that the country needs longer-term investment in irrigation and well systems to avoid a food crisis every time drought strikes.

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Source: NPR Blogs: Planet Money | 22 Oct 2009 | 7:20 am

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