The Target-Date Fund Report Card

Magna expects to sign Opel purchase contract soon (Reuters) Reuters - Magna International (MGa.TO) thinks it can clinch a contract to buy a majority stake in carmaker Opel from General Motors even as GM's board weighs its final word, Magna's co-chief executive said. Source: Yahoo! News: Business | 28 Oct 2009 | 4:32 am Bank stocks fall ahead of EC ruling Banking stocks continued to slide today ahead of a European Commission (EC) ruling on state aid received amid the financial crisis. Source: Latest Business News from Times Online | 28 Oct 2009 | 4:26 am Wall Street heads for weak open Stocks were poised to fall at Wednesday's open, as investors worried that it still may take some time before the economy fully recovers. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 4:25 am Santander boosted by UK bank arm Spain's Santander says profits at its UK banks have risen by more than a third in the first nine months of the year. Source: BBC News | Business | World Edition | 28 Oct 2009 | 4:18 am Don't expect a Great Recovery The economy may get a good report card Thursday for the first time in a long time. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 4:15 am More Bizarre Pay Czar News A new analysis from The Wall Street Journal shows that pay czar Kenneth Feinberg raised the salaries of most of the executives over which he has compensation jurisdiction. The paper reports that base salaries climbed to $437,896 or 14% among the managers pay packages that he reviewed. If Feinberg’s goal is to make executives at financial companies [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 4:13 am Ahead of the Bell: Durable Goods Orders to factories for big-ticket durable goods likely grew in September after an August slump as strong demand for autos offset continuing weakness in aircraft. A rebound in orders for Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 4:10 am CORRECTED - UPDATE 1-Centrica sells windfarm stake to U.S. investor TCW (Corrects first paragraph to read "on Wednesday" instead of "on Monday") Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 4:10 am US to seek Chinese climate ‘understanding’ The US and China will seek a “common understanding” to push forward a global deal on climate change during President Barack Obama’s first state visit to Beijing next month Source: Financial Times - US homepage | 28 Oct 2009 | 4:01 am US Consumer Confidence Up For The First Time Since 2007 The new Nielsen Global Consumer Confidence poll taken during the first two weeks of the month shows that the US had its first positive numbers since 2007. Reuters was given an early release of the report which says that the U.S. reading in the survey was 84, up 4 points from a similar survey in July. That is [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 3:55 am Pakistan bomb kills more than 80 people More than 80 people were killed in a bombing in the northwestern Pakistani city of Peshawar on Wednesday, as Hillary Clinton, US secretary of state, arrived in Islamabad Source: Financial Times - US homepage | 28 Oct 2009 | 3:53 am UPDATE 1-Malaysia's Maxis IPO gets 4 cornerstone investors * Fidelity, 3 other Malaysian funds are cornerstone investors Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:50 am Global shares retreat, Aussie dollar slides LONDON (Reuters) - World stocks slid on Wednesday on worries about the pace of economic recovery after a dip in U.S. consumer confidence, while the Australian dollar fell as inflation figures pared bets on an aggressive rate rise. Source: Reuters: Business News | 28 Oct 2009 | 3:47 am Prudential reports 9% third-quarter sales drop Prudential kicked off the busy third-quarter reporting season for the UK insurance sector today with a 9 per cent fall in worldwide sales as weak domestic numbers were offset by its American and Asia businesses. Source: Latest Business News from Times Online | 28 Oct 2009 | 3:41 am Cheaper toys 'are Christmas hits' Toys costing less than £50 will dominate kids' Christmas lists this year, according to industry research. Source: BBC News | Business | World Edition | 28 Oct 2009 | 3:41 am 15 stressful jobs that pay badly Here are 15 of the most overworked and underpaid professions out there according to those surveyed by PayScale.com. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 3:40 am Homebase turns off lights to save energy Homebase stores have begun switching lights off during sunny working hours in an attempt to slash power bills. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 3:40 am BAA losses widen hit by drop in passengers and Gatwick sale The airports owner tumbled deeper into the red as people stopped flying and it made a loss on the sale of Gatwick airport and it pension deficit grew. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 3:40 am Sale of Gatwick hits BAA results UK airports operator BAA reports a large loss after the sale of Gatwick and says passenger numbers have fallen. Source: BBC News | Business | World Edition | 28 Oct 2009 | 3:34 am Corrections: U.S. futures weak ahead of heavy earnings, data A MarketWatch report dated Oct. 28 incorrectly gave the wrong close for the Dow Jones Industrial Average. It closed up 0.1%. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:33 am Earnings Watch: Updates, advisories and surprises A roundup of the latest corporate earnings reports and what companies are saying about future quarters. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:31 am World markets fall after weak US consumer report (AP) AP - Global stock markets dropped Wednesday as more signs American consumers were struggling undermined hopes for a stronger turnaround in the world's largest economy. Source: Yahoo! News: Stock Markets News | 28 Oct 2009 | 3:28 am Prudential looks to Asia as third quarter sales fall Prudential Britain's largest insurance company reported a 9pc fall in thirdquarter sales as its core Asian region and the United States offset weaknesses at home. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 3:27 am World markets fall after weak US consumer report Global stock markets dropped Wednesday as more signs American consumers were struggling undermined hopes for a stronger turnaround in the world's largest economy. Major Asian markets... Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:25 am UPDATE 1-Novozymes bumps up '09 guidance as Q3 profits rise * Firm nudges up 2009 profit guidance to upper end of range Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:22 am E.U. reportedly set to approve Northern Rock plans The European Commission is expected to approve the U.K. government’s plans to split nationalized mortgage bank Northern Rock into "good" and "bad" banks, according to media reports. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:22 am TABLE-GAIL India Q2 net falls 30 pct (versus the same period a year earlier, in billion rupees unless stated) Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:20 am Only Sixty Shopping Days Until Christmas The very most important corporate earnings for the last quarter are, with few exceptions, out now and October unemployment numbers will be released in a week. Third quarter GDP figures will be released any moment. That leaves economists to walk the long hallway of the rest of the year without a large number of new [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 3:18 am Indications: CORRECT:U.S. stock futures lower ahead of earnings U.S. stock futures fall on Wednesday as markets gear up for another busy day of earnings, along with a full schedule of economic data, including durable goods orders and new home sales. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:16 am Stock futures down ahead of earnings, data (Reuters) - Stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.4 percent, Dow Jones futures down 0.12 percent and Nasdaq 100... Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:15 am Stock futures down ahead of earnings, data (Reuters) - Stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.4 percent, Dow Jones futures down 0.12 percent and Nasdaq 100 futures down 0.28 percent at 5:10 a.m. EDT. Source: Reuters: Business News | 28 Oct 2009 | 3:15 am Stock futures down ahead of earnings, data (Reuters) Reuters - Stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.4 percent, Dow Jones futures down 0.12 percent and Nasdaq 100 futures down 0.28 percent at 5:10 a.m. EDT. Source: Yahoo! News: Stock Markets News | 28 Oct 2009 | 3:15 am Stock futures down ahead of earnings, data (Reuters) Reuters - Stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.4 percent, Dow Jones futures down 0.12 percent and Nasdaq 100 futures down 0.28 percent at 5:10 a.m. EDT. Source: Yahoo! News: Business | 28 Oct 2009 | 3:15 am UPDATE 2-Novartis says EU approves inflammatory disease drug ZURICH, Oct 28 (Reuters) - The European Union has approved Novartis AG's Ilaris to treat children and adults with a rare but potentially fatal inflammatory disease, the Swiss drugmaker said on Wednesday... Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:14 am UPDATE 2-TomTom takes Q3 avg sales price hit; shares slide * Average selling price 99 euros versus expected 109 euros Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:12 am Heineken grows more bullish on earnings Dutch brewer Heineken lifts guidance for annual-earnings growth despite seeing declining beer volumes during the third quarter. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:12 am Steel giant ArcelorMittal reports 76% profit fall Shares of ArcelorMittal fall as much as 6% on Wednesday after the world’s biggest steelmaker reported a 76% decline in third-quarter profit. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:11 am World stocks fall after weak US consumer report Global stock markets dropped Wednesday as more signs American consumers were struggling undermined hopes for a stronger turnaround in the world's largest economy. Major Asian markets... Source: RSS feed - channel BNewsBusiness | 28 Oct 2009 | 3:08 am The Genius Of The Consumer And The Failure Of Car Brands Consumer Reports came out with its annual new car reliability survey. The study is widely anticipated because it  pre=”it “>is based on the opinions of 1.4 million people and because the Consumers Union is considered unbiased in its work of evaluating goods and services for the American public. It is also one of the most well-known [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 3:05 am Asia markets skid lower on shipping stocks Most Asian share markets end lower Wednesday as shipping stocks and shipbuilders fall on worries about the strength of the global economic recovery. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:05 am GMAC seeking third bailout - report GMAC Financial Services is seeking a third round of bailout funds from the U.S. Treasury Department, according to a report in the Wall Street Journal. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 3:03 am Semiconductor sector faces worries beyond holidays The holiday season has yet to begin, but some chip analysts are already looking beyond it, worrying about what happens after the Christmas cheer is gone. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 3:00 am London Markets: British stocks pressured; financials weak London shares fall, moving lower for the second time in four sessions, with banks and insurance firms under notable pressure. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 2:46 am Treasury talks to GMAC about more cash WASHINGTON (Reuters) - The Treasury Department is in talks with GMAC Financial Services Inc about a possible third cash infusion to the company, an Obama administration official confirmed on Tuesday night. Source: Reuters: Business News | 28 Oct 2009 | 2:42 am Treasury talks to GMAC about more cash (Reuters) Reuters - The Treasury Department is in talks with GMAC Financial Services Inc about a possible third cash infusion to the company, an Obama administration official confirmed on Tuesday night. Source: Yahoo! News: Business | 28 Oct 2009 | 2:42 am EU 'to back Northern Rock split' The European Union is set to approve the split of Northern Rock into two separate banks - paving the way for a partial sale. Source: BBC News | Business | World Edition | 28 Oct 2009 | 2:35 am Interview With Caribou Coffee CEO, Michael Tattersfield Caribou Coffee (NASDAQ: CBOU) is a retail and commercial coffee vendor.  Its stock has soared more than 500% this year, well outperforming its peer group.  24/7 Wall St. had an opportunity to interview the company’s President and Chief Executive Officer, Michael Tattersfield, who recently took the helm at Caribou and brings with him extensive experience in the [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 2:30 am Taliban kill UN staff in guesthouse attack Declaring their intention to train attacks on Kabul as Afghanistan prepares for a presidential run-off election, Taliban forces killed at least six foreign UN staff Source: Financial Times - US homepage | 28 Oct 2009 | 2:29 am Carpetright cautious despite rise in sales Carpet retailer and bellwether for the UK economy wary as it reports a second quarter of rising sales. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 2:29 am BAA loses £225 million on Gatwick airport sale BAA, the UK airports owner which sold Gatwick last week, today revealed that it booked a £225 million loss on the deal as it fell further into the red during the first nine months of the year. Source: Latest Business News from Times Online | 28 Oct 2009 | 2:21 am SAP cuts outlook on slow Japan sales SAP, Europe's largest software company, cut its revenue outlook for 2009 after missing expectations for third-quarter results, saying sales in Japan and emerging markets had been slower than expected... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 2:21 am Trading boost lifts Nomura profit Nomura Holdings, Japan's biggest brokerage, reports its second straight quarterly profit as trading activity increases. Source: BBC News | Business | World Edition | 28 Oct 2009 | 2:18 am SAP shares drop after group cuts sales forecast Shares in Germany’s SAP dropped more than 7% in early trading Wednesday after the business-software firm cut its sales outlook for the year and reported a profit that missed market expectations. Source: MarketWatch.com - Top Stories | 28 Oct 2009 | 2:18 am BG profits hit by fall in gas and oil prices Britain's thirdbiggest gas producer said falling gas and oil prices drove thirdquarter profits down 44pc. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 2:05 am SEC head: Blame us for crisis, too Regulators were as culpable for the financial crisis as banks, mortgage originators, and the ratings agencies, Securities and Exchange Chairman Mary Schapiro said Tuesday. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 2:02 am Media Digest 10/28/2009 Reuters, WSJ, NYTimes, FT, Bloomberg Reuters:   The Nielsen survey shows consumer confidence up in the US for the first time since 2007. Reuters:   Obama’s financial reforms are advancing in Congress. Reuters:   The pay czar said his authority should not be expanded. Reuters:   Obama’s “too big to fail” bill would curb bailouts. Reuters:   The ex-CEO of AMD (NYSE:AMD) may have given tips to a Galleon [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 1:59 am 10 most dependable cars While Asian automakers still top the influential magazine's reliability survey, there's some good news in there for Ford too. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 1:57 am Aussie stocks close over 1pc down PERTH - The Australian share market closed firmly in the red after bank stocks led a broad sell-off.The benchmark S&P/ASX200 index was down 68.4 points, or 1.44 per cent, at 4685.1 points, while the broader All Ordinaries index... Source: nzherald.co.nz - Business | 28 Oct 2009 | 1:55 am ArcelorMittal sees first signs of recovery BRUSSELS, Oct 28 - ArcelorMittal, the world's largest steelmaker, returned to profit in the third quarter and forecast a modest improvement in the final three months of the year.The company said on Wednesday... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:50 am Nomura benefits from market recovery Nomura unveiled a return to profits for the second quarter running and said it would resume dividend payments as Japan's leading broker continued to benefit from the recovery in global capital markets... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:48 am Nomura benefits from market recovery Japanese group says it will resume dividend payments as the company continues to benefit from the recovery in global capital markets Source: Financial Times - US homepage | 28 Oct 2009 | 1:48 am Oil edges near $79 on weak equities, steady dollar TOKYO (Reuters) - Oil edged down toward $79 a barrel on Wednesday, giving up some of the previous day's 1.1 percent gain on weaker Asian equities and a steady dollar, but losses were limited after industry data showed a surprise large drawdown in U.S. crude inventories. Source: Reuters: Business News | 28 Oct 2009 | 1:46 am Foreclosures: Worst-hit cities While foreclosure rates are easing in some of the hardest-hit cities, the crisis is beginning to expand into new metro areas. Source: Business and financial news - CNNMoney.com | 28 Oct 2009 | 1:43 am Tesco to create 1,000 bank jobs in Northern Rock heartland Tesco's banking division today unveiled plans to recruit 1,000 staff at a new sales and service centre in Newcastle as the UK Government prepares to put Northern Rock's lending assets on the block. Source: Latest Business News from Times Online | 28 Oct 2009 | 1:28 am Asia Markets (10/28/2009) Markets in Asia were mixed The Nikkei fel 1.4% to 10,075. Honda (NYSE:HMC) rose on good earnings and Toyota (NYSE:TM) and Sony (NYSE:SNE) are about to announce their results. The Hang Seng fell 1.3% to 21,893. The Shanghai Composite was up .3% to 3,031. Data from Reuters. Douglas A. McIntyre Posted in International Markets Tagged: HMC, SNE, TM [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 28 Oct 2009 | 1:21 am Pay czar Feinberg increased base pay at U.S. firms: report (Reuters) - Kenneth Feinberg, the Treasury bailout program's special master for compensation, who cut total compensation for top earners at seven bailed-out firms last week, increased base salaries at the companies, the Wall Street Journal said, citing its own analysis of Treasury data. Source: Reuters: Business News | 28 Oct 2009 | 1:14 am Pay czar Feinberg increased base pay at U.S. firms: report (Reuters) Reuters - Kenneth Feinberg, the Treasury bailout program's special master for compensation, who cut total compensation for top earners at seven bailed-out firms last week, increased base salaries at the companies, the Wall Street Journal said, citing its own analysis of Treasury data. Source: Yahoo! News: Business | 28 Oct 2009 | 1:14 am Clydesdale & Yorks profit falls The Clydesdale Bank and Yorkshire Bank group reports a sharp fall in profits for the year covering the worst of the banking crisis. Source: BBC News | Business | World Edition | 28 Oct 2009 | 1:14 am London Stock Exchange to ditch 'floating balls' to mark start of trading The London Stock Exchange plans to ditch its "floating balls" to mark the start of trading each day in favour something with more pizzazz in an attempt to give its brand a boost according to a newspaper report. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 1:12 am ArcelorMittal returns to profit Steel giant ArcelorMittal reports a third-quarter profit, ending a run of three consecutive quarterly losses. Source: BBC News | Business | World Edition | 28 Oct 2009 | 1:00 am Tiny Port of Hueneme is hit by a perfect storm The Ventura County niche facility is feeling the recession's effects even more than its larger rivals in Los Angeles and Long Beach. On the vast tarmac that marks the Port of Hueneme, a couple of dozen Volvos sit waiting to be trucked to a dealership. There are no bananas coming in this day, no construction equipment, no cars. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am DreamWorks' quarterly results beat low expectations Third-quarter profit drops 48% to $19.6 million, or 23 cents a share. Analysts were expecting earnings of 16 cents a share. DreamWorks Animation SKG posted a 48% decline in third-quarter profit, but the results were nonetheless better than what Wall Street had been expecting. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am Plan would end taxpayer bailouts for financial firms deemed 'too big to fail' Under the Obama administration's proposal, the cost of future government rescues of large bank holding companies and other complex financial firms would be paid by their surviving rivals. ... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am L.A. City Council votes to outsource e-mail to Google Despite lobbying by Microsoft, the council decides to transfer e-mail operations for its 30,000 employees to Google's nationwide network of servers. ... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am Health insurer profits even when denying coverage Altadena resident Mike Freas was twice rejected for health coverage by Anthem Blue Cross because of a preexisting condition, forcing him into a costly state-run program intended to serve as the insurer... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am Home prices in major cities continue to climb Standard & Poor's/Case-Shiller index rises 1% in August from July in its third consecutive monthly gain. Southern California cities, led by L.A. and San Diego, show notable increases. ... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am Ford moves up in Consumer Reports reliability rankings The four-cylinder Ford Fusion and its cousin, the Mercury Milan, rank higher in predicted reliability than any other family sedan but the Toyota Prius. Asian nameplates still are the overall winners. ... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am FAA revokes licenses of pilots who overshot airport Their frolic during a Northwest Airlines flight from San Diego to Minneapolis endangered the passengers and crew, the agency says. ... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am Housing slump hits California timber industry like a buzz saw Weak demand for lumber is forcing some mills to close and leaving many loggers and truckers unemployed. Ron Barlow's 34-year career at the sawmill in the heart of California's Redwood Empire was a study in consistency. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am DreamWorks' quarterly results beat low expectations Third-quarter profit drops 48% to $19.6 million, or 23 cents a share. Analysts were expecting earnings of 16 cents a share. ... Source: RSS feed - channel BNPaperBusiness | 28 Oct 2009 | 1:00 am FAA revokes licenses of pilots who overshot airport Their frolic during a Northwest Airlines flight from San Diego to Minneapolis endangered the passengers and crew, the agency says. The Federal Aviation Administration revoked the licenses Tuesday of the two Northwest Airlines pilots who overshot a Minneapolis airport by 150 miles, saying that they "were on a frolic" that endangered the lives of others. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am Health insurer profits even when denying coverage Altadena resident Mike Freas was twice rejected for health coverage by Anthem Blue Cross because of a preexisting condition, forcing him into a costly state-run program intended to serve as the insurer of last resort for people turned away by the private sector. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am L.A. City Council votes to outsource e-mail to Google Despite lobbying by Microsoft, the council decides to transfer e-mail operations for its 30,000 employees to Google's nationwide network of servers. Los Angeles became the largest city in the nation to move to Google Inc.'s vision of online computing as the City Council voted unanimously Tuesday to outsource e-mail to a Web-based system run by the Internet search giant. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am Plan would end taxpayer bailouts for financial firms deemed 'too big to fail' Under the Obama administration's proposal, the cost of future government rescues of large bank holding companies and other complex financial firms would be paid by their surviving rivals. The cost of future government rescues of huge financial institutions would be paid by their surviving rivals while the troubled firms' management would be fired, their unsecured creditors would face losses and their shareholders could be wiped out, according to a proposal released Tuesday by the Obama administration and a key House panel chairman. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am Ford moves up in Consumer Reports reliability rankings The four-cylinder Ford Fusion and its cousin, the Mercury Milan, rank higher in predicted reliability than any other family sedan but the Toyota Prius. Asian nameplates still are the overall winners. Asian automakers once again dominate the upper ranks of Consumer Reports' annual vehicle-reliability survey, although Ford Motor Co. is making strides in improving the dependability of its cars and light trucks. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am Home prices in major cities continue to climb Standard & Poor's/Case-Shiller index rises 1% in August from July in its third consecutive monthly gain. Southern California cities, led by L.A. and San Diego, show notable increases. The nation's biggest cities are posting steady gains in home prices, a closely followed index showed Tuesday, adding fresh evidence that the U.S. housing market is stirring to life. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am Safety probe of certain Lexus ES models is closed Reports of sudden acceleration are unlikely to stem from a vehicle defect, the National Highway Traffic Safety Administration says. Toyota has blamed out-of-place floor mats for most such incidents. Federal safety regulators have closed an inquiry into sudden-acceleration incidents involving certain Lexus ES models after concluding that a vehicle defect was unlikely. Source: L.A. Times - Business | 28 Oct 2009 | 1:00 am NZ market closes slightly higher The New Zealand sharemarket rose today while most offshore fell.The benchmark NZSX-50 index closed up 10.309 points at 3202.78, after initially opening weaker in wake of a decline in the US market. Turnover was worth $120 million.As... Source: nzherald.co.nz - Business | 28 Oct 2009 | 12:57 am Reasons to invest: the developing world and Gen Y Generation Y in the US is 20pc bigger than the postwar Baby Boom generation. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 12:54 am Share tips: buy Barclays sell British Airways Leading stockbrokers and analysts give their share recommendations. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 Oct 2009 | 12:46 am Ex-AMD head drawn into Galleon probe Hector Ruiz, former chief executive officer of chipmaker AMD, has become the most senior technology industry executive to be drawn into the insider-trading that has engulfed US hedge fund Galleon Source: Financial Times - US homepage | 28 Oct 2009 | 12:29 am NZ dollar slips as Aussie tumbles The New Zealand dollar followed the Australian dollar lower today but tomorrow the focus will be on the Reserve Bank of New Zealand's interest rate review.By 5pm the NZ dollar was buying US73.82c, down from US74.53c at 8am and... Source: nzherald.co.nz - Business | 27 Oct 2009 | 11:33 pm Business confidence jump stalls says survey A sharp rise in business confidence seen in recent months has stalled in latest National Bank Business Outlook report.Overall, a net 48 per cent of respondents expect an improvement in business conditions in the year ahead compared... Source: nzherald.co.nz - Business | 27 Oct 2009 | 10:30 pm Australian interest rates tipped to rise next week CANBERRA - Australian interest rates are expected to rise again next week with new figures today showing inflation was higher than expected for the September quarter.Australia became the first major economy to boost rates since... Source: nzherald.co.nz - Business | 27 Oct 2009 | 10:00 pm These Stocks Are Ill, but Far From Dead AS WHAT WASHINGTON CALLS HEALTH-CARE reform moves closer to reality, the Obama administration and many members of Congress have found an easy target: health insurers. The health-care bill that recently passed the Senate Finance Committee would do little to control costs, Wall Street analysts say. Yet it would sting health insurers with higher taxes, while hurting profits -- by forcing the companies to insure individuals at set rates, regardless of their health condition -- and would levy only modest penalties on people who don't buy a health policy. This could create a situation in which many Americans would buy insurance only when they needed it. That would crimp insurers' profits, while eroding the underlying principal of insurance: that risk is shared by many -- the healthy, the very sick, and everyone in between. Odds are good that legislation of some sort will be enacted. Wall Street, understandably, doesn't like much of what it sees, including what amounts to a $6.7 billion annual windfall-profits tax that could be imposed on health insurers as early as 2010. And lurking out there is the remote risk of extinction for the managed-care business if the U.S. moves to a single-payer, European-style system and muscles out private health insurers altogether. But the worst-case scenarios are unlikely to materialize, and it often pays to buy out-of-favor industries. That's why some of the companies look like buys for patient -- and brave -- investors. The best of them could rise 25% or more over the next year. MANAGED-CARE SHARES HAVE languished since the summer. The S&P managed-care index stands at half its late 2007 high, and the industry carries one of the lowest price/earnings ratios of any major group. The five major stocks -- UnitedHealth Group (UNH), WellPoint (WLP), Humana (HUM), Aetna ( AET) and Cigna (CI) -- trade at an average of only eight times estimated 2009 profits and eight times projected 2010 earnings. That's about half the P/E they've historically been accorded, and just over half the market multiple. Among the few industries with a comparable P/E are property-and-casualty insurers and major drug companies. Charles Boorady, a Citigroup analyst, favors Aetna and WellPoint, while Goldman Sachs' Matthew Borsch likes Cigna and UnitedHealth. "Health-care reform will result in faster spending growth on health care. Almost nothing is being done to control costs," Boorady says. Aetna, at a recent 25, is trading at nine times projected 2009 profits of $2.86 a share. Cigna, at 29, fetches seven times projected 2009 net of $3.85. UnitedHealth, at 25, trades at eight times estimated 2009 profits of $3.15 a share, while WellPoint, at 46, is at eight times projected earnings of $5.67 and Humana, at 37, commands just six times projected profits of $6.15. A problem with the stocks is that they pay little or no dividends. "The capital management of this industry has been nothing short of disgraceful," says Leon Cooperman, the chief executive of Omega Advisors, a New York investment firm that holds UnitedHealth and WellPoint shares. UnitedHealth's dividend is just 0.1%; WellPoint has none. These companies have wasted billions of dollars on aggressive share-repurchase programs at high prices, while management has cashed out options and sold stock. UnitedHealth, for instance, has bought back $15 billion of stock since 2005 at an average price of $42 a share, way above the current stock price. "The industry is in an uncertain environment because the Obama administration is hostile to it," Cooperman says. "So why are they buying back stock? They should return money to shareholders in dividends, and let shareholders decide what to do with the money." Cooperman says both UnitedHealth and WellPoint would appreciate 20% if they paid 40% of profits in dividends. At current share prices, a 40% payout ratio would result in 5% dividend yields. One of the arguments against high dividends is that they would play into the hands of political critics like House Speaker Nancy Pelosi, who has complained about the industry's "immoral profits." Cooperman opines that if this country has gotten to the point "that shareholders aren't entitled to a return on their investment, God help us all." THE GROUP'S BEEN DEMONIZED in Washington for earning supposedly excessive profits, gouging consumers, stifling competition and routinely denying care to the deserving. True, the industry earns a combined $15 billion to $20 billion annually. But that about equals Microsoft's yearly profits, and is less than 1% of total annual U.S. health-care spending. If the industry is so anticompetitive, why do major public insurers have an average net profit margin of 4%, about half the average for the S&P 500? Even before health-care reform surfaced as a major issue during Barack Obama's election campaign, the stocks were under pressure -- due to deteriorating margins stemming from competitive pressures. Goldman's Borsch figures that health-care legislation along the lines of the Senate Finance Committee's bill could cut profit growth among health insurers to an average of about 5% annually, from a potential 10% a year, if no health-care bill is passed in Washington this year. The nearby table shows four potential scenarios and what Borsch figures are the associated probabilities. He figures that there's a 75% chance of some reform bill being enacted this year. The Senate Finance Committee bill is his "base" scenario with a 55% probability, while he assigns a 10% probability to "bear case" reform that would include a public option: a government-run insurance program that would compete against private insurers. CIGNA AND AETNA PROBABLY are the safest choices, because they get the lowest percentage of their revenue and profits from the two sectors most threatened by legislative reform: policies for individuals and small groups (meaning 50 or fewer people) and Medicare Advantage coverage, a privately administered alternative to traditional Medicare that covers 11 million seniors -- 25% of all Medicare participants. Cigna gets just 2% of its revenue from individual and small-group plans and Medicare Advantage, while Aetna gets 21%. Most of Aetna's business is with large companies, which either purchase coverage from the insurer or pay it to administer self-insurance programs. Cigna gets significant revenue from self-insurance plans, and it has sizable non-health-care businesses, including group life insurance and international operations. UnitedHealth and WellPoint, the industry leaders, get 33% and 42% of their profits, respectively, from individual and small-group policies, plus Medicare Advantage. The profitability of individual and small-group health-insurance policies is threatened by the take-all-applicants mandate of the various reform proposals, combined with a weakening of the proposed penalty for not getting insurance. It originally was supposed to kick in by 2013 at $3,800 per family, but it was watered down to $1,500 by 2017 in the recent Senate bill. Congress also is targeting cuts to insurers that participate in Medicare Advantage, amid concern in Washington about the program's rising cost and its profitability for insurers, which earn allegedly outlandish 6% pretax margins on it. Borsch is wary of Humana because it gets about 70% of its profits from Medicare Advantage. Humana carries the lowest valuation in the group for this very reason. Borsch likes Cigna, which admittedly has a grab-bag of assets, because of its minimal exposure to at-risk insurance programs and its low valuation. With greater exposure to health-care reform, UnitedHealth is riskier than Cigna, and it has more than $10 billion in debt. Next year's profits are expected to slip to about $3 a share, from $3.15 in 2009, although that's arguably reflected in UnitedHealth's low P/E. Boorady likes Aetna because of its low-risk business, and is partial to WellPoint because of a low valuation. WellPoint should net $3 billion after taxes around year's end from the sale of its pharmacy-benefit-management business to Express Scripts, and plans to use the bulk of the proceeds for share buybacks. It's always tough buying shares of companies in an unpopular industry that's under fire on Capitol Hill. Despite all the rhetoric in Washington, insurers have a real role to play in the health-care system, and their stocks already discount a dire scenario. They may remain ill for a while, but eventually most will walk out of the intensive-care ward. The Bottom Line Some managed-care companies will remain relatively unaffected by a new U.S. health-care regime. The shares of the most robust could gain 25% or more over the next year. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 27 Oct 2009 | 10:00 pm Making the (New) Grade: Target-Date Funds Best-selling books, top colleges in America, the safest cars. There’s no shortage of reviews and rankings to help with all manner of decisions. But when it comes to one of the biggest—how to choose among retirement investments—the most prominent raters and judges have been uncharacteristically silent. Until now, that is. After months of controversy about target-date funds, Morningstar, the biggest mutual fund rating service, has developed a new system to judge the $200 billion industry. And none too soon: The funds, premixed portfolios that are supposed to get more conservative as an investor’s anticipated retirement date draws near, suffered severe losses in the crash, even in portfolios designed for people who had hoped to retire soon. The losses were all the more galling because the federal government had recently blessed target-date funds, making them an appropriate “default” investment for 401(k) plans. The new ratings bring up more concerns. Despite controlling nearly one-third of all target-date assets, Fidelity hardly plays the role of industry leader. The firm’s major offerings are rated “average” or “below average” by Morningstar. Not that many of its customers would be surprised; Fidelity’s Freedom 2010, a target-date fund designed for soon-to-be retirees, lost more than 25 percent in 2008. Fidelity, which continues to aggressively market target-date funds, declined to comment about the new ratings. But even investors in Morningstar’s “top” funds might have been disappointed: Vanguard and T. Rowe Price earned high marks even though their 2010 products lost 21 and 27 percent, respectively, last year. The new grades depart from Morningstar’s traditional star rating, which is tied heavily to performance. In fact, advisers and investors won’t find performance figures on the one-page reports. The company says it created a new system that highlights other factors, including the mix of stocks and bonds, expenses and fund management. But some analysts say that leaving out performance figures makes Morningstar’s new ratings of little use. “Performance may be the only thing investors really relate to,” says Craig Israelsen, a finance professor at Brigham Young University and longtime critic of target-date funds. No kidding, especially if those investors were among those counting on Oppenheimer’s funds to set up their golden years. The fund firm earned Morningstar’s worst rating, for its crippling combination of aggressive portfolios, poor management and high fees. An Oppenheimer spokesperson says it is making its target-date products more conservative.
Fund Family (Assets Under Management)	Annual Expenses ($) per $10,000	Morningstar Rating
American Century Livestrong ($1.5 bil.)	$88	Top
T. Rowe Price Retirement ($32 bil.)	73	Top
Vanguard Target Retirement ($41.1 bil.)	19	Top
Fidelity Freedom ($71.8 bil.)	69	Average
Fidelity Advisor Freedom Series ($7.3 bil.)	107	Below Average
Oppenheimer ($187 mil.)	173	Bottom
Principal Lifetime Series ($11.6 bil.)	103	Bottom

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Beyond California: New Foreclosure Hot Spots (Consumer Action)

California and Florida have been the epicenters of foreclosure activity since the housing boom came to a screeching halt. Now, though, some new hot spots are emerging, giving the old standbys some company.

Metro areas like Boise City-Nampa, Idaho, and Provo-Orem, Utah, had the biggest year-over-year increases in foreclosure rates among the top 50 foreclosure areas for the third quarter, according to the latest market report from RealtyTrac, a foreclosure listing service. Boise City saw a 141% increase in foreclosure activity compared with the third quarter last year, while Provo’s foreclosures jumped nearly 120%. (Foreclosure activity rose 22.5% nationally in the third quarter, compared with a year ago.)

Rising unemployment in these areas is partly to blame for the rise of some newer foreclosure centers. These areas have been hard hit by jobless woes, says Rick Sharga, senior vice president of RealtyTrac. Typically, Sharga says, higher foreclosure activity is likely to follow a region’s unemployment growth.

Sharga also noted that this past quarter saw more foreclosure activity in so-called secondary markets, like Chico, Calif.; up almost 98% from third quarter 2008, it had the biggest year-over-year increase in California. The midsize city is about 100 miles north of Sacramento and had a 12.8% unemployment rate in August.

The news of shifts in foreclosure activity comes as August figures from the S&P/Case-Shiller Home Price Index indicate stabilization in housing is slowly taking hold. The Case-Shiller Home Price Index showed that the annual rate of decline of the 10-City and 20-City Composites improved compared to last month's reading. There have now been approximately seven months of improved readings in those figures, beginning in early 2009. The 10-city and 20-city index levels declined 10.6% and 11.3%, respectively, in August, compared with the same month last year. But while many of the markets remain lower vs. a year ago, the relative rate of decline has improved.

One factor that may have played into the recent demand is the federal tax credit for first-time home buyers. The credit expires on Nov. 30, though on Tuesday a deal was advancing in the Senate for a smaller credit with broader eligibility.

One mildly optimistic note from the latest foreclosure activity news: The third quarter saw the highest foreclosure activity nationally, “but it appears we’re not growing at as fast a rate as we have in previous quarters,” says RealtyTrac’s Sharga.

Top 25 Metro Areas With Highest Foreclosure Activity, Q3 2009

1. Las Vegas-Paradise, NV
2. Merced, CA
3. Cape Coral-Fort Myers, FL
4. Stockton, CA
5. Modesto, CA
6. Riverside-San Bernardino-Ontario, CA
7. Bakersfield, CA
8. Vallejo-Fairfield, CA
9. Reno-Sparks, NV
10. Port St. Lucie, FL
11. Orlando-Kissimmee, FL
12. Phoenix-Mesa-Scottsdale, AZ
13. Sacramento--Arden-Arcade--Roseville, CA
14. Miami-Fort Lauderdale-Pompano Beach, FL
15. Fresno, CA
16. Salinas, CA
17. Visalia-Porterville, CA
18. Lakeland, FL
19. Boise City-Nampa, ID
20. San Diego-Carlsbad-San Marcos, CA
21. Provo-Orem, UT
22. Oxnard-Thousand Oaks-Ventura, CA
23. Los Angeles-Long Beach-Santa Ana, CA
24. Naples-Marco Island, FL
25. Deltona-Daytona Beach-Ormond Beach, FL

Ranking based on percentage of housing units. Source: Realtytrac

For more details and foreclosure figures, click here.

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3 Stocks That Benefit from Cheap Dollars (Screens)

To the short-sighted, the dollar’s decline over the past seven months is a panic. An index that tracks its value against those of six key currencies -- including the yen, euro and British pound -- has fallen from 89 to 75. To those with a slightly longer view, the decline is merely a return from a panic. The index jumped from 71 to 89 between March 2008 and March 2009, as financial markets deteriorated and the world hoarded U.S. Treasury bonds.

An even longer view shows the dollar is indeed in a humble state, if not quite a shattered one. The dollar index is based on a starting value of 100 and a starting point of March 1973, when the world’s major trading partners permitted their currencies to float freely against each other. (For index values prior to the euro’s introduction in 1999, predecessor currencies like the French franc, Dutch guilder and German mark are used.) Thus, the buck has been only slightly weaker and a lot stronger.

Last month I argued that the U.S. dollar now looks undervalued next to rival currencies, based on comparisons of local purchasing power, and that America is in no worse financial shape than its rich peers. If the dollar is to remain cheap for a while, though, expect U.S. firms that sell overseas to benefit, along with their stockholders.

Two caveats: First, patience is needed. Dollar-fueled sales improvements are likely to be muted or nonexistent in third-quarter results being reported now. That’s because the dollar index’s average value during July, August and September was actually higher than its value during the same period a year before. In October, which will fall in the next earnings season reported months from now, the dollar index has trended about 14% below its year-ago level. Second, to target companies that are mostly likely to benefit from a weakened dollar, be sure you’re looking at true exporters. Nike’s (NKE) overseas sales exposure means nothing if it makes little in the U.S. That most American of manufacturers, Hershey (HSY), sells mainly to a U.S. crowd. The companies below build in America and sell everywhere.

Boeing

A top global maker of aircraft and one of America’s largest defense contractors, Boeing (BA) is also the nation’s largest exporter. The Chicago company buys components from overseas but assembles planes stateside, chiefly in Washington and California. Shares have lost more than 40% in two years but sales have increased during that time. The company posted a sizeable third-quarter loss on charges related to development of its next-generation 787, now more than two years behind schedule. But the 787 is still years ahead of rival Airbus’s answer, the A350, and orders for the 787 remain strong. The company expects to deliver the first 787 late next year. The dollar’s decline has only made the jumbo jet more competitive. Boeing shares trade at just 11 times early forecasts for next year’s earnings.

Caterpillar

This column recommendedCaterpillar (CAT) shares a year ago in a look at stocks for contrarian investors. They’re up 52%, versus an 11% increase for the S&P 500 index. As a leading maker of earth-moving equipment, Caterpillar has suffered mightily from a world-wide slowdown in construction and a clearing-out of inventories by retailers. The company’s sales are expected to fall 37% this year before rebounding 10% next year. Losses from Caterpillar’s financing activities have proved smaller than feared, and the company has reduced costs and now stands poised for a profit rebound as retailers replenish inventories. Analysts expect next year’s earnings per share to climb 30% to $2.59. That level of earnings makes shares seem pricey at just over $56, or about 22 times earnings, but management says it’s shooting for $8 to $12 a share in yearly earnings by 2012. Be skeptical of that goal for now, but even a return to the $5.66 a share the company earned in 2008 would make shares look cheap.

Harley-Davidson

I mentioned Harley-Davidson (HOG) here just last week in a look at companies whose earnings are expected to double next year. That sounds like a promising attribute, but I view it as a negative one, because it makes for high expectations that are easily fallen short of. But Harley is at least building from a low base. Earnings this year are seen totaling just 42 cents a share. Next year they’re forecast to jump to $1.37 a share, mostly on aggressive cost cuts. That puts shares, priced at about $26 apiece, at 19 times 2010 earnings. But last year the company earned $2.79 a share and three years ago it earned close to $4. Again, a return to either level would prove shares cheap. Harley will soon have a smaller U.S. manufacturing presence it used to, because part of its cost-cutting plans involve closing a York, Pa., plant. It’s difficult to imagine hogs being built anywhere but the U.S., though, and about 30% of sales come from elsewhere.

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

U.S. consumer confidence up for first time since 2007

Mystery Fonterra exec gets $3.7m payout

Jetstar launches low-rate credit card

PGG Wrightson seeks guarantee

iPhone closes in on BlackBerry

BNZ posts $181m loss on tax charge

Obama financial reforms advance in Congress

Obama financial reforms advance in Congress (Reuters)

Geithner: More TARP paybacks coming

Brain disease found in sheep

Apollo Group says SEC starts probe, 4Q profit down (AP)

One step closer to more jobless benefits

European Commission to approve Northern Rock split and sale

FSA under fire for lack of inquiry into Icelandic banks

Ambitious Barclays Capital reshuffles at the top

United States delivers blow to banks in war on tax evasion

The oilman who went back to nuts and bolts

The advantages of having a flexible workplace

CNBC Manages To Lose 50% Of Its Audience

Draft law would extend Fed powers

GMAC, Treasury in talks on new capital: report

Ghana's goal

UBS banker Robin Budenberg to manage Northern Rock sale

UAL chief sees new route to airline mergers

Visa Q4 profit beats estimates

Financial regulation fight is a "just war": Geithner

Write-Offs: 10.27.09

$$$ Goldman Sachs: We're The Good Guys [NYT]

$$$ Jamie Dimon promises not to go after top performers at Bank of America, Citi [AP]

$$$ Is Hank Greenberg So Bad For Starting An AIG 2? [NYM]

$$$ UBS To Align Bonuses With Business Performance Once UBS Is Profitable [Reuters]

$$$ Jefferies promotes Lorello to global head of IB [Reuters]

Lenny Dykstra: Homeless Lenny Dykstra Doesn't Have Money For Gas, Shelter But Could Live In Finest Home Money Could Buy, If He Felt Like It

As you're aware, brilliant legal mind Lenny Dykstra is representing himself in his "don't call it bankruptcy" bankruptcy case (which has been converted from a Chapter 11 reorganization to a Chapter 7 liquidation). How are things going so far? Well, Nails has some complaints. First off, why isn't anyone repping for Team Twizzlers?

Attorney Leonard Shulman, speaking on behalf of the estate, said, "This is a very sophisticated and complex case with quite a bit of litigation that can, and should, be pursued." He said his office is working with Fireman's Fund to settle for "just north of $1 million" to cover damage to both homes and to drop claims of bad faith against the insurer. Dykstra says that leaves only about $500,000 to repair the larger house, which "won't even pay my experts to get started" on repairs. However, any settlement money will go to the estate, not to Lenny Dykstra. The former World Series champion vented in court that the estate's lawyers weren't looking after his interests. "I just heard everyone talk about everyone else. But what about Lenny?" Judge Mund advised Dykstra to get his own attorney. "Estate attorneys are not you."

He's not asking for much, you know. Just a place to rest his head, maybe tin of dip, an apology from Jim Cramer for giving him the Bear Stearns treatment, and a private jet. The basics.

Dykstra complained in court that his estranged wife has plenty of money (including his pension) while he has nothing. "I live in the street," Dykstra said. "I don't want anything special. My wife gets $25,000 a month, and she's got $300,000 cash. You know what I got? Zero...I couldn't even buy gas for my car."

Really, will no one have a heart? The man can't even afford to put himself up in a seedy motel for the night.

Ashley takes Newcastle off market

Yell forced to extend debt plan deadline

How Much Would It Cost To Solve Detroit's Problems?

According to City Councilwoman Joann Watson, that number is $1 billion and the administration should cut a bailout check and see what the Motor City does with it. That figure should cover the city's $300 million budget deficit plus the $700 million in petty cash needed to shock a pulse back into the city. However, before you start thinking Watson is just another local politician asking for a bailout using the 'just because' school of thought, be advised, she's got her reasons.

"If the federal government can get a loan from China, if the state of Michigan can get $2 billion in federal stimulus money, why isn't it obvious for the city of Detroit?" she said. "Why not establish us as an important precedent? They've bailed out Wall Street. They've bailed out General Motors. When are they going to bail out the workers? And Detroit's problems are a direct result of the economic meltdown and the crisis in the auto industry"

It's true the bailout express has been all over the place during the past year. But writing a check this size for the city at the epicenter of the auto implosion- does Detroit really deserve something like that?

LSE to ring changes to rival NYSE bell

Jim Cramer Takes Issue With Own Investing Tips Being Thrown Back At Him, Demands Apology, More Gentlemanly Conduct (On The Internet)

The other day, the blogger over at Wall Street Cheat Sheet penned a column arguing that "according to transitive logic," Jim Cramer would recommend selling your stock in The Street.com (TSCM), due to the fact that JC tells people to dump shares when executives leave companies suddenly or miss their filings. Both of these dealbreakers recently occurred at The Street, so the author argued that if one were a strict Cramer fundamentalist, there'd only be one thing left to do. He did not claim that JC had actually made this call himself, but rather used it as sort of WWJCD case study. You would think that Jimbo would a) realize this and b) be flattered that someone had not only bought his book but was following his teachings so closely and helping others to apply them in real time investing situations. But you'd think wrong! Uncle Jim fails to see the humor here and not only that but he wants the post removed, an apology, and honestly? A little class and civility up in this piece. Best line (especially picturing him writing it): "Think about how much better you are than that."

From: James Cramer

To: info@wallstcheatsheet.com

Subject: Some decorum and some fairness

Date: Mon, October 26, 2009 5:30 am

Stocks mostly fall on mixed data; IBM lifts Dow (AP)

AP - Stocks mostly fell Tuesday as mixed reports on home prices and consumer confidence gave investors little incentive to step into the market.

‘Too big to fail’ is too dumb an idea to keep

How the major stock indexes fared on Tuesday (AP)

Silver State Helicopters student debt case settled (AP)

Cohen Calls Pakistan `Biggest' U.S. Foreign Policy Issue: Audio

Special Report: The Climate Race

IRS Special Forces To Be On The Loose Soon

It looks like there is another reason why the majority of people are better off than Warren Buffett. After decades worth of data, the clever crime fighters at the IRS think they may be on to something. As it turns out, most people who play elaborate games of hide-and-seek with some of their assets belong to the same tax bracket.

A new Internal Revenue Service enforcement unit targeting the very wealthy will help the tax agency decode partnerships, offshore trusts and other complex techniques used to hide income, IRS Commissioner Doug Shulman said Monday.

Dubbed the Global High Wealth Industry group, the unit will launch "a small number" of audits of individuals with assets or income in the tens of millions of dollars, Mr. Shulman told an accountants' trade group. An IRS official said the group would begin work on these initial audits in the next month.

Tax cheats beware, the special unit targeting you is onto the complex web you weave. Playing games on your 1040 is not going to get the job done any more. The IRS is taking a more "holistic" approach to you guys and will not stop until they've achieved their objective.

Presented By:

Link Roundup: Afternoon Reading

Spotted at San Francisco's International Day of Climate Action. (Steve Rhodes /Planet Money Flickr pool)

By Caitlin Kenney

Here's a look at what you're reading today:

Twitter pal @reneerico shares an article about the employment picture in California. The SF Chronicle reports that the state's underemployment rate hit 21.9 percent in September. That's a whole lot of people who can't find as much work as they need.

Meantime, @kkemple is looking at the country's perception of stimulus spending. The Christian Science Monitor has a great graphic that shows how different community types (tractor country, emptying nests, boom towns, etc) feel about the government spending millions of dollars to get the economy moving again.

@philipkeeton is deep in tax land with an article from Tax Vox about whether fining people for not getting health insurance could be considered a tax on the middle class.

As for me, I'm digging into the archives over at the New York Times for articles about high Medicare costs in the 1970's. We'll have more on that on tomorrow's podcast.

Share your own recommended reading in the comments below.

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Verizon Raised to `Outperform’ at Wells Fargo: Audio

Apollo’s Woes (APOL)

Jamie Dimon: Heady Days Are Here Again, Come Get Some Money

J.P. Morgan Chase & Co.'s president and CEO Jamie Dimon was interviewed by Charlie Rose at the Securities Industries and Financial Markets Association's annual meeting on Tuesday, where the Wall Street veteran shared his thoughts on the economy, compensation, markets and bailouts.

"The chance of financial Armageddon is over," Dimon said. "Confidence is coming back. This is what a recovery feels like. Corporate credit is flowing, and corporations are flush with cash."

Can you feel it? Can you feel down in your plums? That tingly feeling? That's the recovery working its magic. You want some cash? You want some cash? Here's some cash [throws it in your face]. Come back for more whenever, I've got plenty. This wallet doesn't lie.

Jamie Dimon On The Financial Crisis [The Deal]

Visa Solid, But Not Immune (V, MA)

Health site shows out-of-network costs

Attention Investors: Having Our Asses Handed To Us Is No Big Deal, Says Hedge Fund Manager

How are managing money and martial arts kind of the same thing? They both have the potential to kick the shit out of you but as long as you don't fall over and die (or bleed enough money out of your ass that you're forced to close up shop) it is all good. Lose nearly 70 percent? No problemo.

Benoit "La Tornade" Descourtieux, the second-oldest contender in Hong Kong's third annual Hedge Fund Fight Night for charity, finds it easy to draw a link between managing money and martial arts.

"As long as we do well most of the time, or even if we don't do well but survive, we'll be OK," said the 46-year-old, Michael Douglas-lookalike in an interview at his 27th-floor office with a view of workers unloading cargo ships at Victoria Harbour. Descourtieux manages the Calypso Asia Fund, which bets on rising and falling stock prices and their derivatives.

Anyway, most of you don't need to be told what you already know (everyone's a professional here) but in case you're interested in seeing the metaphor in action, are in the neighb (Hong Kong), and would like to drop a few G's (for a good cause!), La Tornade will be sparring Thursday night. Bonus: there'll be a guy named John "Headcount Reduction" Crane and a male model in the ring. (For those who can't make it, there's an Ultimate Cage Fighting event taking place in Southern Connecticut next month, with some big name participation.)

Vitamin Shoppe to be 1st retail IPO since 2007 (AP)

AARP shares position on health reform

IBM plans to boost buy-backs by $5bn

Pay Czar Clarifies What Comes Next

With the agonizing process of determining what the best of the worst should be paid this year behind him, the Pay Czar offered up some thoughts on the process this time around and what the future holds for the executives lucky enough to have their names come across his desk. Even though he "wouldn't begin to say how much money you should make on Wall Street", KF was able to say how much money you should expect at a bailed out bank on Wall Street. In fact, he was pretty precise about it. So you'd think the master of compensation numbers would have some detailed, specific words of wisdom for the future.

Romhilt Says ETFs Make Big Gains as Long-Term Assets: Audio

Soros: It's Time To Rethink Economics

By Caitlin Kenney

Billionaire financier George Soros has pledged $50 million to create a new think-tank to "develop fresh approaches to economic theory." The Financial Times reports:

Mr Soros, who has long been a critic of economic "fundamentalism", blames the unwavering belief in unchecked free markets, which remains pervasive in universities, for allowing financial markets and asset prices to melt down. Through INET, he will be indirectly funding his philosophy of "reflexivity" -- that markets tend to influence perceptions of reality, which in turn feed back into markets.

"The ideologists in the free markets are still in command and I think they'll be very difficult to remove because they have tenure," Mr Soros said in an interview with the Financial Times.

"I think that the financial crisis has proven that is unrealistic," Mr Soros said of the prevailing economics literature, which assumes that people behave rationally. "The dogma has lost touch with reality."

The board of the Institute of New Economic Thinking, is made up of a number of well known economists including: George Akerlof, Kenneth Rogoff, Joseph Stiglitz and Sir James Mirrlees. The Institute will fund research, sponsor conferences and establish a journal.

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8 Most Epic Abuses of Work Email Ever

As they say, never email anything you wouldn’t want on the front page of the newspapers. So if you’re considering using your work email to send military secrets, a character assassination or even an erotic proposition, then think again – the end result could cost you your job, as well as your dignity. These chumps learnt the hard way.

8. “I haven’t swallowed in years.”

"Yours was yum…"

When is a compliment not a compliment? Perhaps the following might qualify – back in 2000 Claire Swire, an employee of a large internet provider, found herself involved with a less than scrupulous lawyer. One day whilst at work he sent her a joke concerning male bodily fluid (yes, that kind). Claire immediately replied:

“I hadn’t swallowed in years but yours was yum and very good for me too! Apparently it’s a very good conditioner for your hair too…getting a funny picture in my head…”

Ego swollen, he impulsively forwarded the reply to all his friends to show off what a stallion he was in the sack. But compliment quickly turned to embarrassment when one of his friends replied stating he felt “honour bound” to forward it on further. Soon the couple became the laughing stock of the office and the internet, although in the end they both managed to escape with their jobs (just).

7. To whom it may (not) concern

Schoolgirls and military secrets don't mix.

Giving away what you like to get up to in the bedroom is one thing – but when it comes to emails that shouldn’t have ever been sent, national security is a whole different league. In 2000, schoolgirl Claire McDonald began receiving emails from the Pentagon containing top-secret military information. Her address had been accidentally added to a group list by a navy commander. Even Claire was laughing when, in a cruel twist of irony, one message offered advice on how to prevent secrets from being leaked on the internet. Why bother hacking when the Pentagon can do the work for you?

6. “Tell her to get stuffed.”

'Reply to All' claims another victim.

When school Principal Patrick Hazlewood received a complaint from a local pensioner about his pupils misbehaving, his immediate reaction was to email his colleague with his true feelings: “Tell her to get stuffed”. Alas, he hit ‘Reply to All’ by mistake and his remark found its way to the entire staff address book and parents’ association. The school was later forced to offer an apology.

5. Racist or moron… or racist moron?

Racism isn't funny, even over email.

Early 2006: the phrase ‘credit crunch’ had not yet made its way into our daily lives, the US housing bubble was in full swing, and Gordon Brown sat licking his lips at the prospect of becoming the next British Prime Minister. What could possibly go wrong? Well aside from the recession… an email sent by a junior official in the UK entitled “Advantage of being Chinese”. Not only did the sender expose himself as a racist when he encouraged recipients to “try pulling the corners of your eyes as if you were Chinese”, but also as a moron when he copied it to his press list, containing 83 national newspaper journalists and columnists. Woops. One chuckling journalist even replied: “Will we be invited to your leaving party?”

4. “I think they’re both crap.”

"I can't believe I was such an ass."

Sports commentators are no strangers to embarrassing gaffes. In 2002 the BBC radio 5 hired well-known commentators Andy Gray and Jonathan Pearce to help cover the upcoming soccer World Cup in South Korea and Japan. The executive editor of BBC Sports News, Graeme Reid-Davies, decided to email a colleague with his own two-cents, declaring “I think they’re both crap.” Unfortunately, Graeme had not quite mastered the concept of the ‘Reply to All’ button yet, and before he knew it had sent his comment to over 500 BBC sports staff – including the new signings, Gray and Pearce. When asked about the incident Graeme did however show he could turn his scathing criticism against himself, stating: “I can’t believe I was such an ass.”

3. Note to self: Even Billionaires Should Delete Incriminating Emails

A little less time posing Bill, and a little more time deleting incriminating emails.

In 1998 Bill Gates showed that even experienced IT professionals are not immune from being caught out by the email. Whilst defending Microsoft against charges brought by the US Justice department, Gates continually denied everything, saying ‘I don’t recall’ so many times that even the presiding judge had to chuckle. Unfortunately for the software mogul, a thorough examination of his email later confirmed that not only had he been aware of, but had actively participated in attempts to establish an illegal monopoly. Had the man who brought Microsoft Outlook to the masses really thought the police wouldn’t check his inbox? Microsoft were later ordered to share their technology and settled out of court.

2. “The more upper-class you dress, the less likely you shall be denied entry…”

Lucy Gao's email invite was forwarded all over the world.

On her 21st birthday Lucy Gao, a worker for Citigroup in London, organized a bash at the world-famous Ritz Hotel. Little did she know her email invite would go down in internet history as one of the greatest email blunders of all time. Included were instructions on how to deal with door staff, what to wear, what to say, how to look your best and a staggered schedule of guest arrival times. Helpful hints included:

“it goes without saying that the more upper-class you dress, the less likely you shall be denied entry”, and “if you experience any issues… my PA Ms. Gill will kindly deal with your queries between 8:30pm to 10pm” (believed to be university friend Sanampreet Gill).

Hours later Lucy’s email was doing the rounds of investment banks around the world as she become the subject of global ridicule. Citigroup launched an investigation but later declared that Ms. Gao had done nothing wrong and her employment remained “unaffected” – unlike her reputation.

1. “Dude, the threesome’s off… that last email cost me my job.”

"Old horse fat?" Patrick's poposition goes down well in the office.

At 9.38 on the 30th July 2003 a high-flying lawyer, Patrick Smith, received an email from a colleague inviting him for drinks later that day. Unfortunately for him, Patrick had evidently been away the day they covered ‘keep it simple stupid’ at nursery school. Where a simple ‘yes’ would have sufficed, Patrick chose to reply with the following:

“Dude, ‘Carol’ [not her real name] wants some of that double penetration action, so let me know when you and the old horse fat are around.”

For ‘old horse fat’ read ‘penis’ and ‘double penetration’… well, you get the idea. Unfortunately for Patrick, it seems he was also away the day they learned how to use email. It’s hard to imagine how he felt when he realized he’d hit ‘Reply to All’. As one blogger pointed out, his secret remained a secret for all of ten seconds – just enough time for his colleagues to stop laughing and hit the forward button, and in the end Patrick lost his job, his dignity and any chance of getting laid that night. Hmmm, there’s a lesson to be learned there.

Sources: 1, 2, 3

A look at economic developments around the globe (AP)

Has housing market still not hit bottom?

FTSE 100 advances on resurgent oil stocks (AFP)

AFP - The leading stock exchange continued to make progress on Tuesday, fuelled by resurgent oil stocks -- after BP reported a narrower-than-forecast decline in profits -- which offset losses in the banking sector.

Taxes picking up tab for Amtrak losses

Great News For Galleon Investors: Little Leakage Going On

Despite the current "situation" at the firm you're not going to lose much money on account of everyone's favorite spandex lover being an accused criminal.

Galleon Group's liquidation of its hedge funds' portfolios is "more than 90% complete," a person familiar with the matter told Dow Jones Newswires on Tuesday.

The person said that the liquidation was done under "very difficult conditions," considering Raj Rajaratnam's hedge fund firm had about $3.7 billion under management as recently as two weeks ago. There has been "very little value leakage," the person said, meaning the sales of stock have been done at advantageous prices.

BP profits ahead of expectations

Franulovich Says Euro May Return to $1.60: Audio

Quinlan Likes Energy, Industrial, Biotechnology Stocks: Audio

Greenhaus Says Worst Is Over for U.S. Housing: Audio

CMC's Laidi Says Euro Won't Fall Below $1.45: Audio

UniCredit’s Purps Sees Continued Decline for Dollar: Audio

High Costs Force McDonald’s Out of Iceland

McDonald’s will close all of its restaurants in Iceland next week, after high ingredient costs, high import taxes, and a depreciation of the Icelandic krona have made the national Big Mac the most expensive in the world. The Guardian has more:

The closure of the fast-food giant’s three restaurants on Monday means Iceland will become one of the few European countries, including Albania and Bosnia and Herzegovina, without a McDonald’s.

McDonald’s opened in Reykjavik in 1993. The company said in a statement that it would not seek a new partner in Iceland owing to the state of the economy and the complexity of doing business in an island nation of just 300,000 people.

Mick Jagger’s Not-So-Subtlety

Would you want to work for Mick after seeing this letter?

Karl Case Says Home Sales Data `Looks Like Bottom’: Audio

Levy Says U.S. Housing Trend Is `Turning the Corner’: Audio

Market Rises, Confidence Falls. Now What?

By Laura Conaway

Consumer confidence fell in October, the Conference Board reports. The group's Consumer Confidence Index dropped from 53.4 in September to 47.7 this month. People expressed concern about both their current circumstances and the future. The Expectations Index declined more than the Present Situation one.

Unemployment fueled the public's worry, with 49.6 percent of Americans saying jobs are hard to get. That's the highest proportion since May 1983. Ian Shepherdson of High Frequency Economics writes that public's bleak assessment of the future spells trouble:

This is bad news because the outlook index is a near-term leading indicator of consumers' spending -- current conditions just moves in line with unemployment -- and at this level it is consistent with broadly flat real spending.

Shepherdson notes that the continued credit crunch might dampen spending even more than expected. This was the month the Dow Jones Industrial Average crossed the 10,000 mark again, and yet this rally hasn't had the usual effect. Shepherdson writes that "the lack of response this time around is worrying."

The market sank today a bit after the confidence numbers were released.

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SEC seeks to curb naked access, expose fast trades (Reuters)

Reuters - The top U.S. securities regulator said she was looking for ways to crack down on "naked access," the practice of brokers giving high-frequency traders unfettered access to public markets.

SEC seeks to curb naked access, expose fast trades (Reuters)

Reuters - The top U.S. securities regulator said she was looking for ways to crack down on "naked access," the practice of brokers giving high-frequency traders unfettered access to public markets.

Google to Launch App Store for Google Wave

Google recently announced plans to launch an app store for Google Wave. From The Next Web:

The most successful app store yet, the iPhone’s, has just blown past the 100,000 approved iPhone app mark and clearly Google have taken notice with their own Android Marketplace. Despite Apple’s success, it is undoubtedly Android who will win on numbers, with developers swayed by Google’s open source values and the openness of the platform as a whole.

Assuming Wave takes off, and people begin to “get it”, expect big things.

Home Prices Rise. Plus: McDonald's Quits Iceland

By Laura Conaway

Home prices in 20 major American cities rose by 1.2 percent from July to August, according to the latest S&P Case-Shiller increase. That's the fourth consecutive monthly increase. Home values are down 11.3 percent from this time last year and 29.3 percent from their peak.

Meanwhile, James Kwak and Simon Johnson of Baseline Scenario argue that the $8,000 federal tax break for rookie home buyers amounts to throwing "good money after bad." Calculated Risk spots the money quote: "In effect, the tax credit is a way of making houses temporarily affordable that would not otherwise be affordable, and we know where that leads."

AIG's former chief Maurice Greenberg is back and building what one observer calls "AIG Two." Greenberg's raiding his old haunt for talent -- helped by limits on pay at the bailed out insurer.

U.S. newspapers lost an average of 10.6 percent of their circulation from April to September. Gulp.

Cost-cutting and higher prices combined for big profits at BP.

Iceland has made the most progress on closing the economic gender gap, even as McDonald's is closing shop there because the financial crisis has made it to expensive to stay open.

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TSX could follow resources to higher start (Reuters)

Why…

European stocks gain ground (AFP)

AFP - Europe's main stock markets rose on Tuesday, despite heavy falls across Asia, with London winning support from better-than-expected third-quarter results from British energy giant BP.