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Takeaways for Today (12/6/2007 and 12/7/2007)

noreply@blogger.com (David Choi) — Sun, 09 Dec 2007 00:14:00 +0000

12/6/ 2007
Stock rallies, day 2
Stocks rallied Thursday afternoon, gaining for the second session in a row, as investors welcomed the White House's plan to help troubled homeowners and geared up for Friday's jobs report and next week's Fed policy meeting.

Rio Chief Claims BHP Proposal "Dead in the Water"
Rio Tinto Ltd/Plc (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) Chief Executive Tom Albanese said on Friday BHP Billiton Ltd/Plc's (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research) $140 billion takeover proposal to assemble super mining house was now "dead in the water."

Palm warns of loss
Palm Inc (PALM.O: Quote, Profile, Research) warned on Thursday that it will post a loss for the quarter ended November 30 as revenue fell short due to a product delay, driving the company's shares down 16.5 percent.

12/7/2007
Wall St. wary ahead of Fed's Meeting
Stocks struggled for direction Friday as investors welcomed a mostly upbeat November jobs report and geared up for an expected interest rate cut from the Federal Reserve.

Wall St. Ends Flat on oil and jobs; eyes on Fed
Stocks ended little changed on Friday as a sharp drop in oil prices and signs of resiliency in the labor market offset concerns that tighter credit is hurting consumer spending.

S&P Cuts Capital Notes of 13 SIVs, More Cuts Possible
Standard & Poor's said it lowered credit ratings on capital notes of 13 structured investment vehicles and placed debt of 18 SIVs on negative outlook as the funds struggle to finance themselves.

U.S. sees job growth, but rate cut still likely

The number of jobs in the United States swelled more than expected last month. The favorable economic data, however, probably will not enough to dissuade the Federal Reserve from cutting interest rates Tuesday.

Oil and gas companies' expense seen up: Lehman
Global spending on exploration and production by oil and natural gas companies is expected to rise more than 11 percent to $369 billion in 2008, fueled by investment outside North America, according to a survey by Lehman Brothers released on Friday.

Chrysler to recall more than 575,000 vehicles
Chrysler LLC said on Friday it would recall 575,417 vehicles as long-term wear on the gear shift assembly could cause them to shift out of park without the key in the ignition.

ConocoPhilips to set 13% spending hike in 2008
ConocoPhillips (COP.N: Quote, Profile, Research), the third-largest U.S. oil company, said on Friday its 2008 capital spending would total $15.3 billion, an increase of about 13 percent from the top end of its expected 2007 budget.

New IMF chief plans to cut up to 15 percent of staff
The new head of the International Monetary Fund plans to cut up to 15 percent of the organization's staff in an attempt to stabilize the fund's finances as demand for its loans drops, the Wall Street Journal reported on Friday.

CompUSA to close after holidays
CompUSA, the computer retailer that Mexican billionaire Carlos Slim owned since 2000, will shut its doors after 23 years, succumbing to competition from Best Buy Co. and Wal-Mart Stores Inc.

Citigroup is close to picking a new CEO
Citigroup is scheduled to hold its year-end board meetings early next week, where its directors could decide on a new chief executive, according to people briefed on the search process.

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Takeaways for Today (12/4/2007 and 12/5/2007)

noreply@blogger.com (David Choi) — Thu, 06 Dec 2007 16:50:00 +0000

12/4/2007 (Tuesday)

Oil settles higher waiting for OPEC
Oil prices crept back up over $88 a barrel Tuesday as traders reacted to mixed signals on whether OPEC would decide to increase production during its meeting this week.

12/5/2007 (Wednesday)Stocks jump on Fed hopes
Stocks rallied Wednesday, bouncing after a two-session slide, on strong economic news and bets that the Federal Reserve will cut interest rates again at its policy meeting next week.

Oil soars after OPEC keeps the supply unchanged
OPEC dashed hopes that it would step up production at its meeting Wednesday, news that sent oil prices shooting back towards the $90 a barrel mark in early trading.

Economic Data Boosts NYSE
A slew of positive economic news gave a boost to the NYSE on Wednesday, with the S&P 500 and the Dow industrials each racking up a 1.5% gain. The NYSE composite jumped 1.4%.

Chrysler Chief sees $1.6 bln losses this year
Chrysler LLC Chief Executive Robert Nardelli expects the automaker to lose $1.6 billion this year, the Wall Street Journal reported in its online edition, citing sources familiar with the matter.

President to outline 5-year rate freeze plan
President George W. Bush is expected to outline on Thursday a plan to freeze mortgage rates for five years for many U.S. homeowners facing sharp increases in their monthly payments, industry sources said on Wednesday.

Private sector adds 189,000 jobs in Nov
Private employers added 189,000 jobs in November, a report by a private employment service said on Wednesday, much higher than market expectations and the biggest monthly increase in a year.

UBS, Goldman leads as Asia banking fee up 36 percent
Investment banking fees in the Asia Pacific region rose 36 percent to a record $11.7 billion so far this year -- roughly the gross domestic product of oil-rich Brunei -- with UBS (UBSN.VX: Quote, Profile, Research) and Goldman Sachs (GS.N: Quote, Profile, Research) the top earners.

Fannie Mae to sell $7 bln stock
Fannie Mae (FNM.N: Quote, Profile, Research) said on Tuesday it will sell $7 billion of preferred stock and slash its dividend 30 percent to shore up its capital base through 2008 as the U.S. housing slump worsens.

Ex-Morgan Stanley analysts and her husband get 18 months
A former Morgan Stanley financial analyst and her husband, an ex-hedge fund analyst at ING, were sentenced to a year and half each on Tuesday for insider trading.

Exxon Chief awarded close to $20 mln in bonus
Exxon Mobil Corp (XOM.N: Quote, Profile, Research) on Tuesday said it gave Chief Executive Rex Tillerson a cash bonus and restricted stock currently valued at close to $20 million under its short-term incentive plan for 2007.

Google looks to ad partners beyond DoubleClick
Google Inc is looking at more advertising partners outside its proposed purchase of DoubleClick Ltd and sees a move to a single system for selling ads across media taking up to five years, a top executive said on Tuesday.

Traders See 50% Odds Fed Will Cut Rate by Half Point
Odds the Federal Reserve will cut interest rates by half a point next week surpassed 50 percent for the first time, according to trading in futures contracts, reflecting concern banks face more losses on securities tied to subprime loans.

Merrill hires Financial chief
The new chief executive of Merrill Lynch, John A. Thain, made his first big move at the brokerage firm yesterday by hiring his former finance chief at the New York Stock Exchange.

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Takeaways for Today (12/3/2007)

noreply@blogger.com (David Choi) — Wed, 05 Dec 2007 23:10:00 +0000

Wall St. struggles higher
Stocks were mixed Monday afternoon as investors welcomed news that the White House is taking steps to aid subprime mortgage holders, but held back after last week's rally and ahead of key economic news due later this week.

Fedex chief sees U.S. slowdown, but not steep decline
The chief executive of package delivery company FedEx Corp (FDX.N: Quote, Profile, Research) said on Sunday that although the U.S. economy has slowed down, he does not think it will go into a "precipitous decline."

Dollar falls on Fed speak, economic data
The dollar fell back against major currencies on Monday, after comments by a Federal Reserve official further cemented expectations that the central bank will cut interest rates next week.

Crude Oil closes to five-week low before OPEC meeting
Crude oil futures declined to their lowest in more than five weeks before an OPEC production meeting and amid signs of an economic slowdown in the U.S., the world's largest energy user.

Gold ends higher after last week's steep fall
Gold futures closed with gains on Monday, rebounding from their steep decline last week, as weakness in the dollar boosted demand for the precious metal.

Li-Ka Shing foundation buys Facebook stake
Online social network Facebook.com has closed a $60 million investment by Li Ka-shing through the billionaire Hong Kong tycoon's foundation, a source familiar with the deal confirmed on Monday.

Buffet to buy $2.1 billion in TXU junk bonds from Goldman
Warren Buffett's Berkshire Hathaway (BRKa.N: Quote, Profile, Research) is paying $2.1 billion to buy TXU junk bonds from Goldman Sachs (GS.N: Quote, Profile, Research), CNBC reported on Monday.

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Takeaways for Today (12/1/2007 and 12/2/2007)

noreply@blogger.com (David Choi) — Mon, 03 Dec 2007 21:25:00 +0000

OPEC to weight a modest oil supply boost
OPEC will weigh a modest boost to oil supply at a meeting on Wednesday, but a $10 retreat last week in crude prices from a record high near $100 a barrel could tip the balance away from pumping more.

OPEC says oil supply is adequate as prices retreat
OPEC members, the producers of more than 40 percent of the world's oil, say they are pumping enough to meet global demand and an increase would do little to ease prices.

Mortgage industry hashes out rate-freeze plan
Mortgage industry executives worked on Saturday to hammer out details of a homeowner rescue plan that would freeze interest rates on some U.S. subprime mortgages for up to seven years, but questions remained over how to avoid investor lawsuits and other legal challenges.

Starbucks plan 2nd farm support center in Rwanda
Starbucks Corp (SBUX.O: Quote, Profile, Research) said on Saturday it would open a support centre for coffee farmers in Rwanda, the second in Africa after Ethiopia.

Dell to form venture with WPP to handle ads
U.S. computer manufacturer Dell Inc (DELL.O: Quote, Profile, Research) said on Sunday it will invest $4.5 billion in marketing over three years as part of an agreement to form a new agency with Britain's WPP (WPP.L: Quote, Profile, Research) that will handle all of the company's advertising and marketing.

IRS considers delaying start of tax season
The Internal Revenue Service is looking hard at whether to delay the start of tax-filing season if Congress, in the next two weeks, doesn't pass a law exempting millions of people from the Alternative Minimum Tax.

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Takeaways for Today (11/30/2007)

noreply@blogger.com (David Choi) — Sat, 01 Dec 2007 07:47:00 +0000

Blue chips get Bernanke boost
Blue chips gained Friday in a choppy session in which investors welcomed comments from Fed Chair Ben Bernanke that implied further interest rate cuts are on the way but showed some caution after a three-day advance.

Oil prices fell below $89
Oil prices fell Friday on expectations that OPEC will decide to increase output at its meeting next week and as concerns of a supply disruption from a U.S. pipeline fire abated.

Gold futures end lower; lose over $42 on the week
Gold for February delivery fell $13.20 to end at $789.10 an ounce on the New York Mercantile Exchange. Gold futures posted a weekly loss of $42.70, significantly down from last Friday's closing level of $831.80.

Morgan Stanley may face $5.7 billion write-downs
Morgan Stanley (MS.N: Quote, Profile, Research) may face a fiscal fourth-quarter write-down of as much as $5.7 billion for mortgage-related losses, CNBC television said on Friday.

Citi cuts assets of sponsored SIVs by $17 billion
Citigroup Inc. said late Friday that it has reduced the assets of structured investment vehicles it advises by $17 billion in the past two months, as the banking giant tries to maneuver through this year's subprime thicket.

UBS Financial Rating Cut by Moody's on Subprime Loss
UBS AG, Europe's biggest bank by assets, had its financial-strength rating cut by Moody's Investors Service for the first time since 1998 because of concern about losses from U.S. subprime-mortgage securities.

Warner Music's Profit Slips 58% as Industry Struggles
The Warner Music Group said yesterday that its fourth-quarter profit slipped 58 percent amid a softer international market and a decline in compact disc sales. Its results, however, topped Wall Street estimates.

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Takeaways for Today (11/29/2007)

noreply@blogger.com (David Choi) — Fri, 30 Nov 2007 07:30:00 +0000

Markets manage advance
Stocks struggled higher Thursday, at the end of a bumpy session in which investors mulled weak home sales and mixed corporate news ahead of a key speech from Fed chairman Ben Bernanke in the evening.

Oil jumps $4 after pipeline blast
Crude oil climbed $4.55 in early trading to $95.17 amid fears the pipeline which feeds Canadian crude to refineries in the US Midwest had been crippled ahead of the peak winter season. The pipeline system has the capacity to supply 20 per cent of US crude imports.

Gold closes down below $800 amid dollars gain
Gold futures finished below $800 an ounce on Thursday, as gains in the U.S. dollar squeezed demand for the precious metal.

Gold for December delivery fell $5 to finish at $795.30 an ounce on the New York Mercantile Exchange.

Bernanke signals financial strains dimming outlook
Federal Reserve Chairman Ben Bernanke said on Thursday a resurgence in financial strains in recent weeks had dimmed the outlook for the U.S. economy, signaling an openness to lowering interest rates again.

Fed will protect economy; not the individuals
The Federal Reserve will act to protect the wider economy from financial turmoil but not to shelter individual investors from losses, Fed Board Governor Frederic Mishkin said on Thursday.

U.S. Says China Agrees to End Some Sudsidies
Bowing to American pressure on the eve of high-level talks to reduce economic tensions, China agreed today to end a dozen subsidies that promote exports and discourage imports of steel, wood products, information technology and other manufactured goods.

Banks, US near deal to freeze subprime rates
The Bush Administration is close to agreeing on a pact with major financial institutions that would temporarily freeze interest rates on certain subprime loans, the Wall Street Journal reported Friday, citing sources familiar with the negotiations.

Google ready to bid on mobile airwaves
Google Inc was set to announce on Friday it will bid on coveted airwaves to launch a U.S. wireless network, the Wall Street Journal reported on Thursday, citing sources familiar with the matter.

Sprint rejects $5 billion investment offer

Sprint Nextel Corp (S.N: Quote, Profile, Research) has rejected a $5 billion investment by a group including former chairman Tim Donahue, South Korea's SK Telecom Co Ltd (017670.KS: Quote, Profile, Research) and Providence Equity Partners, a source familiar with the matter said on Thursday.

Dell profits rise; but outlook remains murky
Dell's shares fell more than 10% in after-hours trading, as the maker of PCs and server gear warned that future earnings could be hurt by shifts in the market, though it declined to give an exact forecast.

Sears Holding profit tumbles on declining sales
Sears Holdings Corp.'s quarterly profit tumbled 99% after declining sales at both its Kmart and Sears chains led to steep discounts, and the company said Thursday it doesn't anticipate any significant near-term improvement. Shares dropped to a 2 1/2-year low.

Morgan Stanley's Cruz Replace After Mortgage Losses
Zoe Cruz, co-president of Morgan Stanley and Wall Street's highest-paid female executive, was ousted three weeks after the firm disclosed $3.7 billion of losses on mortgage-related securities at the division she oversaw.

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Takeaways for Today (11/28/2007)

noreply@blogger.com (David Choi) — Thu, 29 Nov 2007 06:05:00 +0000

Stocks surge after Fed comments
Stocks surged Wednesday, with the Dow industrials rallying 331 points, after comments from a Federal Reserve official sparked bets that the central bank will cut rates again at its next policy meeting.

Fed Comments Lift Stock Futures
Stock futures pointed to a strong open Wednesday, thanks to Fed Vice Chairman Donald Kohn's rate cut hints. Nasdaq futures climbed 28 points vs. fair value, S&P 500 futures gained 11 points and Dow futures rallied 81 points.

Oil price dips nearly $4
Oil prices fell nearly $4 Wednesday, adding to steep losses Tuesday, on a healthier-than-expected U.S. inventory report and speculation OPEC will boost production.

Economic growth eased as home demand fell
Economic growth slowed in October and the first half of November as a glut of homes for sale pushed home prices down and tighter credit took some would-be buyers out of the market, the Federal Reserve said on Wednesday.

Existing home sales drop to record low in Oct
Existing home sales fell 1.2 percent in October to a record low 4.97 million-unit pace, according to a report on Wednesday that showed the downturn in the U.S. housing market was deepening.

Freddie Mac shares post biggest gain in 19 years
Shares of Freddie Mac (FRE.N: Quote, Profile, Research) surged on Wednesday as strong demand for a record preferred stock issue signaled the second-biggest provider of U.S. home funding could access capital even in turbulent markets.

Bear Stearns to cut 650 jobs globally
Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) said on Wednesday it would cut 650 jobs, or 4 percent of its global work force, as the investment bank braces to lose money in the fourth quarter due to bad bets on subprime mortgages.

Yahoo and Adobe team on PDF ads
Yahoo and Adobe are bringing pay-per-click ads to Adobe's Portable Document Format so that publishers can serve up ads inside PDFs distributed on Web sites and over e-mail that are contextually relevant to the content.

Porsche optimistic about earnings after sales increase
Porsche SE, the maker of the 911 sports car, said sales rose 15 percent in the last four months and that it's ``carefully optimistic'' about full-year earnings growth.

Japanese automakers raise production output
Toyota, Honda and Nissan, the three largest carmakers in Japan, increased production in October on rising overseas demand.
Toyota, the biggest Japanese automaker, increased global production 16 percent to 821,003 vehicles in October, and Honda's output rose 13 percent to 363,532 vehicles, the companies said in separate statements Tuesday.

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Takeaways for Today (11/27/2007)

noreply@blogger.com (David Choi) — Wed, 28 Nov 2007 07:22:00 +0000

Stock Bounces Back
Stocks rose Tuesday, reclaiming most of the day's gains at the end of a choppy afternoon in which investor enthusiasm for recently battered shares was tried by ongoing worries about the economy.

Crude Oil Slumps as Production Fears; Slowing Economic Growth also weighs
U.S. crude oil futures fell more than $3 a barrel on Tuesday, pressured by the possibility of an OPEC production increase when the group meets next week and sliding consumer confidence that could signal slower demand.

Top economic adviser to leave White House

The resignation of Hubbard, 60 years old, is expected to be announced as soon as Wednesday, according to a report in the Wall Street Journal. Hubbard will follow out the door this year, political advisor, Karl Rove, communications chief Dan Bartlett, and budget director Rob Portman, among others.

Hubbard's departure comes in unfortunate timing for the government, which is facing an economic crisis triggered by woes in the mortgage industry that has also resulted in rising foreclosures and worries about recession.

December Fed rate cut seen as virtual certainty

The rhetoric continued Tuesday with two Federal Open Market committee members expressing no desire to move rates from their current 4.5% level. But despite the line in the sand, Fed watchers are convinced there will be a quarter-point rate cut at the next meeting on Dec. 11. And the financial markets, based on Fed funds futures trading, is just as certain of a rate cut.

Well Fargo sets aside $1.4 billion to cover losses
Wells Fargo & Co., the second-largest U.S. mortgage lender, said late Tuesday that it will set aside $1.4 billion during the fourth quarter to cover higher losses on home-equity loans caused by deterioration in the real-estate market.

Verizon's move can tear down the "walled garden"
Verizon on Tuesday said that by the end of 2008 it plans to give customers more choice over the phones they use and the software that runs on them. In effect, its wireless business would become like the World Wide Web instead of the closed model of the existing phone industry.

Freddie Mac cuts dividend, slates $6 billion preferred
Freddie Mac (FRE.N: Quote, Profile, Research), the second largest provider of financing for U.S. home loans, on Tuesday said it halved its quarterly dividend and will sell $6 billion in preferred stock to bolster capital in anticipation of mounting mortgage-related losses.

China Rejects Europe's Call for Currency to Rise Faster
China signaled Tuesday that it would resist European demands for rapid appreciation of the yuan and would instead continue gradual progress toward a more flexible exchange rate.

Google's Next Frontier: Renewable Energy
Google, the Internet company with a seemingly limitless source of revenue, plans to get into the business of finding limitless sources of energy. The company, based in Mountain View, Calif., announced Tuesday that it intended to develop and help stimulate the creation of renewable energy technologies that are cheaper than coal-generated power.

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Takeaways for Today (11/26/2007)

noreply@blogger.com (David Choi) — Tue, 27 Nov 2007 07:11:00 +0000

Stock Market Turns Lower
Stock selling accelerated Monday afternoon, as a mostly positive start to the holiday sales period was overshadowed by further worries about the impact of the credit and mortgage market fallout on the economy.

Metals Rise as Investors await U.S. data; Oil Price Ease
More bullish buying propped up precious and base metals prices Monday as U.S. markets returned from the long Thanksgiving weekend, while energy and agricultural markets turned soft on profit-taking.

Treasury Rates Sinked to 3 1/2 As Credit Concerns Rise
U.S. Treasuries surged on Monday, with benchmark yields reaching a more than 3 1/2-year low as increasing credit market strains caused investors to seek the relative safety of government bonds.

Citigroup shares below $30
Citigroup Inc (C.N: Quote, Profile, Research) shares fell below $30 for the first time in more than five years on Monday, amid mounting concern about mortgage losses and possible further job cuts at the largest U.S. bank by assets.

Citigroup planning major job cuts
Citigroup, the No. 1 U.S. bank by assets, is planning major job cuts over the coming months, CNBC television reported on Monday.

For Abu Dhabi and Citi, Credit Crisis Drove Deal
A falling dollar, a growing pile of oil revenue and an interest in not being overshadowed by neighboring Dubai’s increasingly high profile spurred Abu Dhabi to break with its low-key investing tradition to purchase a big $7.5 billion stake in Citigroup.

E*Trade shares fall on credit woes
E*Trade Financial Corp (ETFC.O: Quote, Profile, Research) shares fell sharply on Monday as investors became skeptical the online brokerage can escape its credit woes with a merger, or by selling part of its business.

HSBC backs SIVs with $35 billions
HSBC Holdings Plc, Europe's biggest bank, has stepped in to support its two structured investment vehicles -- Cullinan and Asscher -- with funding of up to $35 billion to prevent forced sales of assets.

Fed set to provide extra liquidity into 2008
The Federal Reserve said on Monday it will conduct a series of term repurchase agreements extending into the new year in response to heightened pressures in money markets.
The Fed said the first operation for about $8 billion is set for November 28, to mature January 10, 2008.

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Takeaways for Today (11/24/2007 and 11/25/2007)

noreply@blogger.com (David Choi) — Mon, 26 Nov 2007 20:08:00 +0000

Subprime gives fund return of 1000%
A Californian hedge fund has made a more than 1,000 per cent return this year by betting against US subprime home loans, making it one of the world's best-performing funds of all time.

China's Citic Securities eyes HK Listing
Citic Securities, China’s largest securities firm by market capitalisation, is considering listing in Hong Kong in the wake of its pioneering joint venture agreement with Bear Stearns, the US investment bank. Citic’s deal with Bear Stearns is awaiting approval from regulators, but the two companies have announced their intention to invest in each other through an exchange of convertible securities and the set-up of a joint venture in Hong Kong.

Profit combined with pain in Airbus China deals
European planemaker Airbus wore two masks in China on Monday -- the joy of landing what could be its biggest ever aircraft order by volume, contrasted with growing despair over the plunging value of the dollar.

China unhappy with EU's product safety call
The top EU trade official told China on Monday its reputation was at risk after a series of product safety scandals and that it must do more to tackle the problem. The comments drew an icy response from a senior Chinese minister.

Chinese Ministry Urges Joint Efforts on Fuel Shortage
China's Ministry of Commerce pushed for joint efforts from local agencies and major oil refineries to stabilize the supply of oil products as the country's energy shortage continues.

96,000 pounds of beef recalled
American Foods Group, based in Green Bay, Wis., has recalled 95,927 pounds of ground beef potentially contaminated with E. coli after two people who ate the meat got sick, the U.S. Department of Agriculture said.

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Takeaways for Today (11/23/2007)

noreply@blogger.com (David Choi) — Sun, 25 Nov 2007 06:53:00 +0000

Dow cashes in Black Friday despite weak volume
Stocks rallied in light trading Friday, with the Dow closing up more than 180 points, as investors sought deals in the battered financial sector and retailers got a bounce out of Black Friday shopping. Stocks perked up in a Black Friday-shortened session, as retailers and financials led the way.

Oil posts closing record to $98.18
Oil futures resumed their march toward $100 a barrel Friday, rising to a new record settlement in light holiday trading on concerns about tight heating oil supplies while also drawing support from a buoyant stock market.

Dollar hits new low against Euro
The dollar hit a new low against the euro in thin trading Friday as speculation continued that the American credit crisis will lead to another cut in interest rates in the U.S.

Gold piles on gain amid dollar weakness
Gold futures rose for a third day, closing up $26 an ounce in an abbreviated post-holiday session after the dollar touched a new low against the euro, increasing the value of gold as an investment safe haven.

Greenspans says flexibility cut possibilities of recession
The economy's great flexibility has reduced the risk of recession from the subprime mortgage crisis, former Federal Reserve Chairman Alan Greenspan said on Friday.

EADS says weak dollars threatens Airbus
The sharp decline of the U.S. dollar poses an "existential" long-term threat to Airbus that will force it to shift production to dollar-zone countries and rein in development plans, the head of Airbus parent EADS said.

Freddie Mac to raise $5 bln in preferred stock sale
Freddie Mac (FRE.N: Quote, Profile, Research), the U.S. mortgage finance company that stunned Wall Street with a $2 billion quarterly loss earlier this week, plans to sell $5 billion of preferred stock in a deal to be launched as early as next week, the Wall Street Journal said on Friday.

E*Trade may be in talks with other brokers
Online brokerage E*Trade Financial Corp (ETFC.O: Quote, Profile, Research) is believed to be in merger talks with Charles Schwab Corp (SCHW.O: Quote, Profile, Research) and TD Ameritrade Holding Corp (AMTD.O: Quote, Profile, Research), according to a report on Friday on business news channel CNBC.

Online Retailers roll out sales for "Cyber Monday"
Consumers are expected to plant themselves at their computers and make online holiday purchases Monday, a day that has become increasingly important to retailers and shoppers alike.

EU officials to talk tough on trade in China
Top European Union officials will talk tough in Beijing next week about China's snowballing trade surplus and its reluctance to open its booming economy further to European business.

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Takeaways for Today (11/22/2007)

noreply@blogger.com (David Choi) — Fri, 23 Nov 2007 10:38:00 +0000

Cautiously Optimistic about Wall St.
Stocks futures rose early Friday, although economic concerns and thin trading during the shortened session could lead to a volatile day on Wall Street.

Oil slips while gold breaches $800
Crude oil prices were steady above $97 a barrel Thursday after failing to break above $100 as a U.S. weekly inventory report showed crude oil inventories rose at a key oil terminal.
Gold inched 0.1 per cent higher to $802.70 in thin trade.

Dollar and stock hit by U.S. growth concerns
The dollar hit record lows against the euro and a basket of major currencies on Thursday while Asian and European stocks slipped as worries intensified over how hard the credit crunch will hit the U.S. economy.

$300 bln in Write-Offs is Expected
Losses in the distressed mortgage sector of the United States could reach $300 billion, only a portion of which has so far been accounted for by write-offs at major banks, according to a study released on Thursday by the Organization for Economic Cooperation and Development.

Another huge year for Boeing
Boeing announced on Wednesday it has won 1057 gross orders, or 1047 net, so far in 2007.
FOR the third straight year, Boeing has won orders for more than 1000 passenger jets and has already eclipsed its sales record set last year, when it beat its rival Airbus for the first time since 2000.

Wal-Mart Loses Bid to Protect their secretive documents
A North Carolina state judge rejected an attempt by Wal-Mart Stores Inc. to block public access to certain court documents in a tax dispute with state authorities.

Samsung expands LCD-Panel Production
Samsung Electronics Co. announced a 2.06 trillion won ($2.22 billion) investment in liquid-crystal-display panels to help meet growing demand for large flat-screen TV sets.

Daimler hurt by dollar buy see no recession
Daimler AG (DAIGn.DE: Quote, Profile, Research) Chief Executive Dieter Zetsche does not expect the U.S. economy to contract as a result of high oil prices and the real estate crisis.

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Takeaways for Today (11/21/2007)

noreply@blogger.com (David Choi) — Thu, 22 Nov 2007 06:52:00 +0000

Wall St. walloped
Stocks slumped Wednesday, with the Dow closing at a 7-month low, as worries about the credit and mortgage market and higher oil prices hit investors hard ahead of what for many will be a long holiday weekend.

30-year mortgage rate 6.20%, lowest since May
Mortgage rates sank this week, with rates on 30-year mortgages dropping to a six-month low, a spot of welcome news to would-be home buyers.

10-year note yield sinks below 4%
The yield on the 10-year Treasury note fell below 4 percent for the first time in two years early Wednesday. Treasury prices rallied Wednesday, as fresh stock market losses spurred demand for the relative safety of U.S. government debt.

Oil Flirts With $100 In Volatile Trade; Copper Slides On Economic Worries
Oil came within cents of $100 a barrel, heightening concerns about the U.S. economy, while copper prices wallowed on those same worries. Gold returned briefly to above $800 an ounce before closing just under that level on inflation pressures from oil and a persistently weak dollar.

Home Prices Continues to Fall
Housing price drops, driven by soaring foreclosure rates, accelerated during the three months ended September 30, according to the latest data from the National Association of Realtors (NAR).

Jobless Claims Fell 11,000 to 330,000
The number of Americans filing first-time claims for unemployment benefits fell last week to a level that still suggests the labor market is softening. Initial jobless claims decreased by 11,000 to 330,000 in the week that ended Nov. 17, the Labor Department said today in Washington.

Gap's Profit Up 26% on Costs Cut, but with a weak outlook
Gap Inc. said Wednesday that its third-quarter profit rose 26 percent as marketing costs fell.
But the company’s cost-cutting campaign could not compensate for a slowdown in sales at its Gap and Old Navy chains. Companywide revenue was flat, and same-store sales — at stores open at least a year — fell 5 percent.

A&F shares up as profit rises
Abercrombie & Fitch Co (ANF.N: Quote, Profile, Research) reported a 15 percent rise in quarterly profit on Wednesday, helped by strength in its namesake chain of stores and improved margins, and stuck by its profit outlook for the second half of the year, which includes the holiday season.

Google extends market lead in search
Google Inc. retained its position as the top search engine in October and increased its share of the U.S. search market over September, according to data released Wednesday by comScore Inc.
Google captured 58.5 percent of the market in October, up from 57 percent in September. Users performed 6.15 billion searches on Google sites during the month, comScore reported. Globally, 7.47 billion searches were performed on Google sites in October, compared with 6.59 billion in September.

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Takeaways for Today (11/20/2007)

noreply@blogger.com (David Choi) — Wed, 21 Nov 2007 09:35:00 +0000

Dow climbs back above 13,000
The Dow rose back above 13,000 at the close Tuesday as stocks ended a rocky day by closing just above their opening levels, when buyers returned to the market to scoop up languishing financial and retail stocks.

U.S. Stocks Rise; Led by Energy Shares; Exxon Google Rally
U.S. stocks rose, rebounding from three-month lows, after record oil prices boosted energy companies and Credit Suisse Group said shares of Google Inc. may reach $900 in the coming year.

Oil hits above $99 as dollars sink
Oil soared to record highs on Wednesday, drawing within a hair's breadth of the $100 milestone as the U.S. dollar plumbed new lows and the onset of cold U.S. weather stirred anxiety over winter supplies.

Copper Falls on Fear of Economic Slowdown; Crude Oil, Gold Resume Their Rise
Copper prices slipped to an eight-month low Tuesday on worries about a global economic slowdown. Copper prices slipped to an eight-month low Tuesday on worries about a global economic slowdown.
Gold rallied sharply to move within sight of $800 an ounce as the dollar slid to a record trough vs. the euro and crude oil prices surged toward an all-time high. Crude oil prices also resumed their rise. Light, sweet crude for January delivery surged $3.39 to settle at a record $98.03 a barrel on the New York Mercantile Exchange.

Fed minutes show October rate cut was "close call"
The Federal Reserve was unsure last month whether lower borrowing costs were needed to cushion the U.S. economy from a housing slump and credit woes but decided to cut interest rates as a form of insurance.

Freddie Mac hit by huge losses
Freddie Mac (FRE.N: Quote, Profile, Research), the No. 2 U.S. mortgage finance company, on Tuesday stunned Wall Street with a unexpectedly wide loss and plans to slash its dividend or use other means to raise capital to withstand a continuing downturn in the housing market.

OD Falls into Housing Pit
Chalk Office Depot up as the latest victim of the collapse of the housing market. The second-largest U.S. office supplies chain blamed the housing slowdown for softening consumer spending, which pushed its quarterly profit well below expectations.

Whole Foods Profit Falls due to Wild Oats-related Costs
Whole Foods Market Inc., the largest U.S. natural-foods grocer, said fourth-quarter profit fell because of costs related to its purchase of Wild Oats Markets Inc.
Net income dropped 15 percent to $33.9 million, or 24 cents a share, from $39.8 million, or 28 cents, a year earlier, Whole Foods said today in a statement. Sales rose 35 percent to $1.74 billion, exceeding analysts' estimates of $1.61 billion.

Barnes & Noble shows profit while losses at Borders widens
Barnes & Noble raised its earnings outlook yesterday, after swinging to a third-quarter profit on sales of new releases. Losses widened in the same period at its rival, the Borders Group, which was hurt by charges related to the sale of its subsidiaries in Britain and Ireland.

Exxon signs exploration pacts with Libya
Exxon Mobil Corp. signed a deal to explore for oil and natural gas off the Libyan coast, further cementing ties with the oil-rich North African nation.

Newspaper online ads up
Online advertising spending at U.S. newspapers rose 21 percent in the third quarter but failed to offset a print ad spending decline, according to a study released Tuesday.

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Takeaways for Today (11/19/2007)

noreply@blogger.com (David Choi) — Tue, 20 Nov 2007 06:31:00 +0000

Big Selloff on Wall St.
Stocks tanked Monday as Goldman Sachs' dour outlook on the financial sector and a weak report on home builder confidence sparked a broad market selloff.

Crude oil rises after OPEC leaves production target unchanged
Crude oil rose after members of the Organization of Petroleum Exporting Countries left production unchanged at a weekend meeting in Riyadh, Saudi Arabia.

Oil Settles near $95
Light, sweet crude for January delivery rose 80 cents Monday to settle at $94.64 a barrel on the New York Mercantile Exchange Monday after alternating between gains and losses. Gas dropped 1.4 cents over the weekend to a national average of $3.095 a gallon, according to AAA and the Oil Price Information Service.

Gold finishes lower, extending last week's losses

Gold for December delivery dropped $9 to finish at $778 an ounce on the New York Mercantile Exchange. Last week, gold futures declined $47.70. "A confluence of events" drove gold prices lower, said Zachary Oxman, a senior trader at Wisdom Financial.

Gas and gift prices cause customers to spend less
Thirty-five percent of consumers said they plan to spend less than last year, up from 32% a year ago, according to the survey of more than 1,000 adults, conducted for CFA and CUNA by Opinion Research Corp. The survey's margin of error is plus or minus 3 percentage points.

Wall St. plans on $38 bln of bonuses as shareholders lose
Shareholders in the securities industry are having their worst year since 2002, losing $74 billion of their equity. That won't prevent Wall Street from paying record bonuses, totaling almost $38 billion.

Goldman Sachs says sell Citi
Goldman Sachs analyst William Tanona on Monday recommended that clients sell Citigroup shares, because the bank's financial problems are likely to grow, and spread beyond current write downs for subprime mortgage losses and into its consumer business like credit cards and retail banking.

HP profit climbs as notebook sales increase

H-P (HPQ 49.44, -1.31, -2.6%) said it earned $2.2 billion, or 81 cents a share, compared with $1.7 billion, or 60 cents a share, a year ago. Revenue rose 15% from last year's $24.6 billion. Excluding charges and one-time items, H-P would have earned $2.3 billion, or 86 cents a share. By that measure, H-P beat the estimates of analysts surveyed by Thomson Financial, who forecast H-P to earn 82 cents a share on $27.4 billion in sales.

Takeaways for Today (11/17/2007 and 11/18/2007)

noreply@blogger.com (David Choi) — Mon, 19 Nov 2007 07:14:00 +0000

Fed's Sterns: Foreclosures in housing to rise
Minneapolis Federal Reserve Bank President Gary Stern said on Monday he expected the U.S. housing market to weaken further because of a large pool of unsold homes.

Fed and Market square upover rate cut
It would be hard to imagine a worse moment for the Federal Reserve and the market to collide over an interest rate cut that the market wants and expects, but the US central bank is not prepared to deliver. Yet the risks of such a collision appear to be increasing by the day.

Congress tackles subprime crisis
The most comprehensive legislative response to the subprime crisis emerged on Thursday as the House of Representatives passed a bipartisan bill imposing liability on companies that package mortgages into securities and setting new standards for mortgage origination.

Gas Prices close to all-time high
The price of gasoline has jumped another 13 cents in the last two weeks, close to the all-time high set earlier this year. The average price of a gallon of self-serve regular is $3.09, the Lundberg Survey found. That's just 9 cents below the record set in May.

OPEC to look at the impact of weak U.S. dollar
OPEC will study the weak U.S. dollar's effect on the oil cartel's earnings and investigate the possibility of a currency basket, Iran's oil minister said Sunday.

U.S. auto sales could drop to 14.5 mln in '08
The U.S. light vehicle market will fall to 14.5 million to 15 million units in 2008 from near 16 million this year, a private equity executive who previously was president of Chrysler said on Sunday.

G-20 calls on Asia for More Currency Flexibility
The Group of 20 nations called for ``more flexibility'' in the currencies of emerging Asian nations after European and Canadian officials stepped up pressure on China to reduce its trade surplus with a stronger yuan.

Celgene Agrees to acquire Pharmion for $2.9 B in cash, stock
Celgene Corp., the maker of thalidomide-based drugs for blood cancers, will acquire Pharmion Corp. for $2.9 billion in cash and stock to gain a leukemia product that extended lives in a study.

Standard Charted: a £25 billion takeover target
Standard Chartered could be put into play as a £25 billion takeover target after it emerged that China's three leading banks have been looking at buying a large stake in the UK-based emerging markets lender.

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Takeaways for Today (11/16/2007)

noreply@blogger.com (David Choi) — Sat, 17 Nov 2007 07:45:00 +0000

Wall St. Ends Weeks with uptick
Major indexes staged a late rally to finish higher Friday, capping a rather volatile session where investors closely eyed corporate earnings and attempted to gauge the Federal Reserve's next step.

Techs pace early stock advance
U.S. stocks got a lift at Friday's open from some developments in the tech sector, particularly an investment in Advanced Micro Devices and a Cisco Systems buyback plan.

Oil prices break $95
Oil prices rose above $95 a barrel Friday amid expectations that global crude supplies will remain tight, despite a U.S. oil inventory report that showed a surprising increase in domestic crude stockpiles.

Copper Rises On Short-Covering; Gold Dips As Oil Pops Back To $95
Copper touched a three-month low on Friday, hit by falling equity markets and worries about weakening demand before short-covering pushed prices into positive terrain ahead of the session's close.
Gold ended a tad lower in New York on Friday, capping an extremely volatile week, as investors opted to lock in profits after initially hunting for bargains based on a weaker dollar and rising crude oil prices.

Goldman: U.S. may Face $2 Trillion lending shock
The impact of the U.S. mortgage market crisis on the underlying economy could be "dramatic" as leveraged investors may need to scale back lending by up to $2 trillion, according to investment bank Goldman Sachs (GS.N: Quote, Profile, Research).

F edEx stock falls after high oil cost and economic outlook
Package delivery company FedEx Corp (FDX.N: Quote, Profile, Research) cut its earnings forecast for the current quarter on Friday, citing higher fuel prices and weaker demand for ground shipments too small to fill a truck.

Citigroup names Bushnell as new Corporate Risk Officer
Citigroup Inc. replaced David Bushnell as chief risk officer, two weeks after the largest U.S. bank said writedowns on mortgage-related investments may lead to its first quarterly loss since at least 1998.

Google Prepares $4.6bn for Wireless Spectrum
Google has indicated it is likely to press ahead with a multi-billion-dollar bid for a slice of the US airwaves in order to launch a nationwide wireless broadband network. Today a spokesman told Times Online that the group was taking "all necessary preparations to become an applicant in the auction".

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Takeaways for Today (11/15/2007)

noreply@blogger.com (David Choi) — Fri, 16 Nov 2007 09:14:00 +0000

Tough Day on Wall St.
Stocks tumbled Thursday, with financial, commodity and technology shares leading the charge lower as investors continued to worry about the credit market crisis and the strength of the consumer.

Fed injects net $6bln into banking system
The Fed carried out three repurchase agreements totaling $47.25 billion, according to the Web site of the Federal Reserve Bank of New York. Since other agreements were expiring, so the Fed ended up adding roughly $6 billion in extra liquidity into the system, said Lou Crandall, chief economist at Wrightson ICAP.

OPEC: economy slowing, costly oil dents demand
OPEC said on Thursday it sees a modest downturn in the U.S. economy in the fourth quarter due in part to record high oil prices, but booming growth in China and the Middle East will keep world oil demand strong.

Oil Trades Fall Below $94 After falling on unexpected oil supplies increase
Crude oil traded little changed below $94 a barrel in New York after falling yesterday on a report showing U.S. imports rose for a third week and refiners increased gasoline and distillate production. U.S. oil supplies grew unexpectedly last week after falling for three-straight periods, according to government data published Thursday that sent oil prices falling.

Mortgage Rate Stays at 6.24%
Fixed-rate home mortgages were nearly unchanged in the latest week, according to Freddie Mac's weekly survey. The national average interest rate on the benchmark 30-year, fixed-rate loan was 6.24% in the week ended yesterday, flat with week-earlier and year-earlier levels.

US inflations reaches 14-month high
Bond yields tumbled as US annual inflation reached a 14-month high and signs of trouble in the economy mounted. The cost of living increased 3.5 per cent compared to a year ago after consumer prices rose another 0.3 per cent last month, driven by higher fuel costs, according to official figures.

S&P Downgrades Bear Stearns
Credit rating agency Standard & Poor's said Thursday it lowered its long-term counterparty credit rating on Bear Stearns Cos. to "A" from "A+" because of its plans to write down $1.2 billion in collateralized debt obligation and subprime mortgage exposure.

Barclays to make $2.7 bln write-down
Barclays announced on Thursday a lower-than-expected write-down on securities related to subprime mortgages, calming investors who had recently sold shares of the bank amid fears that it would post a loss.

Starbucks Shares may fall after lower profit, sales forecasts
Starbucks Corp., the world's largest chain of coffee shops, may fall in U.S. trading after lowering its profit and sales forecasts following its first-ever decline in U.S. customer visits.

BEA says profit up as backs decision to Oracle
BEA Systems Inc (BEAS.O: Quote, Profile, Research) posted a better-than-expected 59 percent rise in quarterly net profit as margins improved, and the business software maker said the results validated its decision to reject a takeover bid from Oracle Corp (ORCL.O: Quote, Profile, Research).

3M to buy Aearo Tech for $1.2 Billion
3M Co (MMM.N: Quote, Profile, Research), which makes products ranging from Scotch tape to optical films for liquid crystal displays, said on Thursday it would acquire Aearo Technologies Inc, a maker of hearing- and eye-protection and energy-absorbing products, for $1.2 billion.

J.C.Penney's cuts outlook
J.C. Penney Co. reported Thursday a 9.1% drop in third-quarter profit, hurt by sweeping discounts to clear unsold merchandise. The department-store operator cut forecasts for the fourth quarter and the full year, citing macroeconomic concerns.

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Takeaways for Today (11/14/2007)

noreply@blogger.com (David Choi) — Thu, 15 Nov 2007 07:17:00 +0000

After the rally, a retreat
Stocks ended lower Wednesday after a mixed session turned sour in the last half hour of trade, with investors bailing out of technology, financials and some of the other leaders of the previous day's rally.

Oil closes above $94 due to supply concerns
Crude-oil futures rebounded on Wednesday from a sharp sell-off in the previous two sessions, after forecasts show U.S. crude inventories may decline for a fourth week and as the Organization of the Petroleum Exporting Countries rejected a U.S. appeal to boost output at an upcoming meeting.

Copper Price Rises after Quake Hits Chile
The price of copper rose sharply after an earthquake rocked northern Chile, the world's largest copper producer. It wasn't clear whether mining output would be dented.

Dollar Remains as Main Currency Reserve , China says
The U.S. dollar will remain the ``main currency'' in China's $1.43 trillion foreign reserves, said Yi Gang, assistant governor of the People's Bank of China.

OPEC says India, China not to blame for costly oil
China and India aren't to blame for the surge in global oil prices to within $100 a barrel, OPEC Secretary General Abdalla Salem el-Badri said Wednesday in comments published by China's official Xinhua News Agency.

Merrill names NYSE chief Thain as CEO
Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research) on Wednesday named NYSE Euronext (NYX.N: Quote, Profile, Research) Chief Executive John Thain as its new CEO, bringing in an outsider with a Goldman Sachs pedigree to repair an image battered by wrong-way bets on subprime mortgages.

UBS may write off $7.1B
UBS, the Swiss financial services giant, will take a multibillion write-down due to risky debt holdings linked to the deteriorating housing market, according to a news report.

Berkshire actions
Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research)(BRKb.N: Quote, Profile, Research) said on Wednesday it has taken a stake in CarMax Inc (KMX.N: Quote, Profile, Research), the largest U.S. retailer of used cars, and increased its holdings in Dow Jones & Co (DJ.N: Quote, Profile, Research) and several banking and health-care companies.

Cerberus backs out its purchase of United Rental
Cerberus has backed out of its planned $4 billion purchase of United Rentals, the rental equipment company said Wednesday. Shares of the rental equipment compnay fall over 30 percent as private equity group backs out of the $4 billion deal.

Ellison warns BEA on future bids
Any future Oracle takeover bid for BEA Systems will be for less than the $7bn ($17 per share) it offered last month, Larry Ellison, Oracle's chief executive officer, warned on Wednesday night.

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Takeaways for Today (11/13/2007)

noreply@blogger.com (David Choi) — Wed, 14 Nov 2007 05:26:00 +0000

Big rally on Wall St. Led by Wal-mart and 2 Banks
Stocks surged Tuesday, with the Dow climbing nearly 320 points, after comments from executives at Goldman Sachs and other major banks reassured investors worried about the ongoing fallout from the credit market crisis.
The buy-in began after Wal-Mart gave a more upbeat sales forecast and reported better-than-expected third-quarter earnings.

Chinese retail sales surge 18.1%, CPI at 11-year high

Government data released Wednesday showed retail sales rose 18.1% in October from a year earlier, the fastest pace of growth so far this year. Analysts said the higher spending reflected robust income gains and the wealth effects from the soaring stock market.

Oil All the Way Below $93 a Barrel
The International Energy Agency on Tuesday sharply reduced its forecast for oil demand growth through the rest of '07 and into '08 saying oil's march towards $100 was already slowing consumption.Oil deepened losses and was down more than $1 a barrel shortly after the IEA report was released. But at just under $94, the price for U.S. crude is not far off an inflation-adjusted high of $101.70 hit in 1980.

Realtors revise home sales forecast lower again
The National Association of Realtors said Tuesday that sales of existing homes in the U.S. are expected to decline to a five-year low this year, and the outlook for 2008 is worsening.

Morgan Stanley sees revenue growth slowing in 2008
Morgan Stanley (MS.N: Quote, Profile, Research) expects revenue and common equity growth to slow next year amid a more challenging environment, the company's chief financial officer said at a conference on Tuesday.

Google DoubleClick Deal
European regulators refused Tuesday to approve Google’s $3.1 billion purchase of the Internet advertising company DoubleClick. They ordered a review of the deal amid opposition from rivals, publishers and consumer groups.

Sirius, XM holders back merger
Shareholders of both XM and Sirius satellite radio voted on Tuesday in favor of a planned $5.1 billion merger of the two rivals that still needs approval by the federal government.

AT&T launches mobile banking with Wachovia, SunTrust
The program will enable customers to view account balances, transfer funds and pay bills from their AT&T (NYSE: T) mobile phones. Wachovia Corp. (NYSE: WB) and SunTrust Banks Inc. (NYSE: STI) have partnered with mobile banking providers Firethorn Holdings LLC and CheckFree Corp. (NASDAQ: CKFR) in order to provide a mobile banking solution for the millions of customers who bank with them.

Murdoch says to give free access to WSJ
Rupert Murdoch says he plans to abolish subscription fees at The Wall Street Journal’s Web site, according to news accounts from Australia. This apparently was news to executives at his company and The Journal, who cautioned that the decision might not be final.

Atari's CEO departs
Atari has announced its CEO David Pierce has resigned and is handing over the company reins to Chief Restructuring Officer Curtis G. Solsvig III on an interim basis. Pierce oversaw the company since September 2006, a time filled with financial woes. Most recently, last week Atari confirmed its financing has run dry.

Citigroup in capital market revamp
Citigroup on Tuesday unveiled a further shake-up of its capital markets operation following last week’s admission that it faces up to $11bn of further writedowns on its exposure to subprime mortgage securities.

KKR hoping to defy tourmoil with IPO
KKR, the US private equity group, on Tuesday offered evidence that it was moving ahead with plans for an initial public offering, in spite of the turmoil in the credit markets.

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Exchange Traded Notes: A Potential Rule-Breaker?

noreply@blogger.com (David Choi) — Wed, 14 Nov 2007 05:10:00 +0000

iPath ETN, created and marketed by Barclays Bank, PLC, is very similar to ETF, or Exchange-Traded Funds (also pioneered by Barclays), which can be traded like a stock throughout the day, but also mimics the returns of a benchmark index. However, ETN comes with an important tax advantage over ETFs and mutual funds -- it is not required to distribute dividends and capital gains every year, making it possible for investors to avoid paying tax on such distributions, and having more money at work until the final redemption.

Now here is the caveat: in order to achieve these tax benefits, ETNs are structured as unsecured, unsubordinated debt securities issued by Barclays Bank PLC, with returns linked to a pre-defined benchmark index, minus fees. In other words, the value ETNs are secured by the credibility of Barclays instead of a pool of underlying investments.

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Takeaways for Today (11/12/2007)

noreply@blogger.com (David Choi) — Tue, 13 Nov 2007 07:15:00 +0000

Losing Streaks continues for Wall St.
Wall Street's stock selloff continued Monday with the Dow industrials finishing below 13,000 for the first time in months, as some financial sector strength and lower crude oil prices failed to calm jittery investors.

Wall St. on credit, economic watch
U.S. stock futures were slightly lower Monday morning even as oil prices retreated, as investors attempted to recover from last week's steep drop and braced for a batch of economic reports and potential additional woes from top financial firms.

U.S. Stocks Gain, Led by Banks; Citigroup, Wal-Mar t, IBM Rise
U.S. stocks rose for the first time in four days after investors snapped up shares of banks, brokerages and department stores that had fallen to their cheapest valuations in at least 12 years.
Citigroup Inc., Bank of America Corp. and Wal-Mart Stores Inc. led the gains. International Business Machines Corp., the world's largest computer-services company, climbed the most since August after agreeing to buy business-software maker Cognos Inc. in the biggest takeover of a technology company in a month. IBM to buy Cognos for $5 Billion
In hopes of keeping pace with rivals in the field of "business intelligence" software, IBM Corp. said Monday it plans to buy Cognos Inc. for $5 billion in cash. Cognos (Charts) shares rose nearly 8 percent in pre-market trading.

HP To Acquire Data Center Cooling, Energy Specialist EYP
Hewlett-Packard (NYSE: HP) on Monday said it has agreed to buy EYP Mission Critical Facilities, a consulting company that specializes in data center cooling and energy efficiency. Financial terms were not disclosed.

Adobe Names Narayen New CEO
Design and publishing software maker Adobe (ADBE: 42.19, -1.05, -2.4%) said current Chief Executive Bruce Chizen will be replaced by President and Chief Operating Officer Shantanu Narayen on Dec. 1.

Blacks tone shares off after reporting losses

Blackstone Group LP (BX.N: Quote, Profile, Research) on Monday reported a quarterly loss from charges and posted a 44 percent drop in real estate revenues, missing analysts' estimates and sending its shares down more than 6 percent.

MySpace invites Facebook to new OpenSocial Platform
MySpace has invited Facebook, its key rival, to join OpenSocial, a newly-launched technical platform designed to encourage web developers to create content for a wide variety of social networking sites.

Google offers $10 million for best mobile programs
With no Gphone and no mobile customers in sight, Google is offering a good reason for developers to build high-quality applications for its new Android mobile platform - $10 million in cash prizes.

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Takeaways for Today (11/10/2007 and 11/11/2007)

noreply@blogger.com (David Choi) — Mon, 12 Nov 2007 07:54:00 +0000

Tech Still Sinking, Thanks Cisco!
The striking decline of tech stocks continued on Wall Street Friday, as the Nasdaq was down nearly 6% for the.
The tumble started Wednesday, but really picked up steam Thursday as investors digested comments from Cisco Systems (nasdaq: CSCO - news - people ). The network solutions firm posted stronger-than-expected earnings on Wednesday, but offered a cautionary outlook.

Top U.S. banks agree on backup fund for markets
The top three U.S. banks have agreed on the structure of a backup fund of at least $75 billion to stabilize credit markets, The New York Times reported on Sunday.

Goldman Held Bigger Share of Level 3 Assets Than Citi, Merrill
Goldman Sachs Group Inc. held a bigger proportion of hard-to-value assets at the end of the third quarter than Citigroup Inc. and Merrill Lynch & Co., two of the firms hardest hit by subprime mortgage losses.

Goldman Sachs CEO may get $75 mln bonus
Goldman Sachs (GS.N: Quote, Profile, Research) Chief Executive Lloyd Blankfein may earn a pay package of up to $75 million in cash and stock this year, the New York Post said on Sunday, citing sources inside the firm.

HSBC seen facing another hit from U.S. mortgages
Europe's biggest bank HSBC Holdings (HSBA.L: Quote, Profile, Research) is this week expected to unveil a further big hit from its exposure to the U.S. mortgage crisis. HSBC Finance, the unit formerly called Household, will unveil third-quarter results on Wednesday.

Airbus Wins $31 Billion Aircraft Order From Emirates
Airbus SAS, the world's largest manufacturer of commercial planes, won an order from Emirates for aircraft valued at as much as $31 billion, including 70 A350 airliners and 11 double-decker A380s.

BHP pitches $30 billion buyback
BHP Billiton Ltd/Plc on Monday mapped out its plan for acquiring rival Rio Tinto Ltd/Plc, promising to hand shareholders $30 billion via a share buyback if the deal goes through, in the hope of drawing Rio's board into talks.

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Takeaways for Today (11/09/2007)

noreply@blogger.com (David Choi) — Mon, 12 Nov 2007 06:02:00 +0000

Oil closes up on supply concern, Pakistan unrest
Crude-oil futures erased earlier losses on Friday to close higher for the first time in three days, on concerns oil supplies may keep tightening and increasing political tensions in Pakistan may pose a threat to oil shipments.

Dollar Falls to Record Low on Fed Interest-rate cut speculation
The dollar fell to its lowest level against a basket of major currencies on speculation that credit- market losses and slowing economic growth will push the Federal Reserve to cut borrowing costs a third time this year.

Visa files to raise up to $10B in IPO
Visa Inc. late Friday filed with the Securities and Exchange Commission to raise up to $10 billion in an initial public offering of its Class A common stock.

$4.85B Vioxx Settlement
Merck & Co. said Friday that it has agreed to settle the vast majority of the product-liability lawsuits filed by former users of its recalled drug Vioxx for about $4.85 billion.

Whitehouse Station, N.J.-based Merck (MRK 55.90, +1.13, +2.1%) said that the agreement calls for the settlement of 85% of the U.S. cases lodged against it in both state and federal court, or up to 50,000 individual claims. The company added that it currently faces 60,000 individual claims in the United States.

Best Buy to Expand Mobile Stores

Best Buy (NYSE: BBY) is planning to roll out its mobile store concept at 1,000 sites over the next two years, U.K.-based mobile retailer Carphone Warehouse, which has a joint venture with Best Buy, said this week.

FCC Moves to Place Restrictions Cable TV
The Federal Communications Commission is likely to impose a new regulation on the largely unregulated cable television industry, the first of what may be more to come.

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Takeaways for Today (11/08/2007)

noreply@blogger.com (David Choi) — Fri, 09 Nov 2007 07:50:00 +0000

Bernake Warns of Worst Times in the Economy
Ben S. Bernanke, chairman of the Federal Reserve, told Congress on Thursday that the economy was going to get worse before it got better, a message that received a chilly reception from both Wall Street and politicians.

China's Monthly Trade Surplus May Top $30 Billion
China's monthly trade surplus probably topped $30 billion for the first time, adding fuel to U.S. complaints the yuan is undervalued. The gap widened 29 percent in October from a year earlier to $30.8 billion, according to the median estimate of 14 economists surveyed by Bloomberg News. The government may release the figure as early as today.

Tech no longer above the fray; Nasdaq feels pain
Investors taking comfort in the fact that tech stocks have been relatively unscathed in the recent slide will have to look elsewhere for consolation. The Nasdaq composite just had its worst two days of the bull market, a 4.6% drop capped by a 53-point plunge to 2696 Thursday. It could have been far worse: Earlier the Nasdaq was down 101 points.

China risks backlash on currency policy: Paulson
Beijing's reluctance to adopt a flexible exchange-rate regime is widely considered unfair and puts China at growing risk of a protectionist trade backlash, U.S. Treasury Secretary Henry Paulson warned on Thursday.

Morgan Stanley losses show risk push downside
When John Mack returned to take the helm at Morgan Stanley in 2005, he pushed a risk-averse investment bank to close the gap on rivals by making bolder bets in the markets and expanding its presence in mortgages.
Those moves contributed to Mack's first major setback on Wednesday, when Morgan disclosed that its mortgage traders suffered $3.7 billion in fourth-quarter losses. The damage, which could deepen if markets weaken, shows the downside of boosting risk.

Citigroup gives ex-CEO Prince $40 million package
Citigroup Inc (C.N: Quote, Profile, Research), the largest bank in the United States, said on Thursday that its former Chairman and Chief Executive, Charles Prince, will take home roughly $40 million as he retires from the company.

Cisco Shares Fall on Failure to Meet Growth Es timates
Cisco Systems Inc. dropped the most in more than three years on the Nasdaq after Chief Executive Officer John Chambers said a ``dramatic'' decline in sales to automobile and financial companies is curbing growth.
Revenue this quarter will rise 16 percent, Chambers said yesterday. That would equal about $9.79 billion. While the forecast was in line with analysts' projections, shareholders expected more from the world's biggest networking-equipment maker, which beat estimates in four of the past five quarters.

Estee Lauder CEO to Step Down
Estee Lauder Cos (EL.N: Quote, Profile, Research) will announce on Friday that its chief executive, the grandson of the cosmetics maker's founder, will step down within two years, The Wall Street Journal online reported on Thursday.

Office Depot says, accounting errors to reduce earnings
Office Depot Inc (ODP.N: Quote, Profile, Research) said on Thursday it will reduce earnings for some prior periods following an independent review of its accounting for certain vendor program funds.
The company estimates it will reduce diluted earnings per share by 2 cents in the 2006 third quarter and by 3 cents in the 2006 fourth quarter. For this year, it will reduce the first quarter earnings by 1 cent per share and by 2 cents per share for the second quarter.

Disney profits up on ESPN, US Theme Parks
Walt Disney Co (DIS.N: Quote, Profile, Research), the second-largest U.S. entertainment company, reported on Thursday a 12 percent rise in quarterly profit, driven by sports network ESPN and U.S. theme parks, but revenue just missed Wall Street's target.

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