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IPL...

2009-07-31T17:34:00.002+10:00

LGL...

2009-07-31T17:33:00.001+10:00

FXL...

2009-07-31T17:30:00.003+10:00

DJI updated...

2009-06-28T20:54:00.000+10:00

AllORDs Index

2009-04-20T14:51:00.002+10:00

NYSE World Leaders

2009-04-20T14:49:00.002+10:00

Alcoa reports $497M loss in 1Q on lower prices...

2009-04-08T07:16:00.002+10:00

[Daniel Lovering, AP Manufacturing Writer, Tuesday April 7, 2009, 5:05 pm EDT]
PITTSBURGH (AP) -- "Alcoa Inc., the largest U.S. aluminum producer, said Tuesday it lost $497 million during the first quarter, as the global economic crisis continued to erode prices and demand for the lightweight metal.

The loss was Alcoa's second in the past two consecutive quarters and underscored the deterioration of aluminum-intensive industries such as autos and construction. Orders for the metal, used in everything from cars and airplanes to windows and soda cans, began sliding last fall as the world economy weakened. Stockpiles grew, prices plunged and aluminum makers started scaling back production worldwide. Analysts say plants are losing money, but that prices may recover modestly this summer.

Alcoa, the first blue chip company to report earnings for the quarter, and considered an indicator of upcoming results from other firms, said its quarterly revenue dropped 44 percent to $4.15 billion from $7.38 billion during the same period last year..."

Fannie, Freddie to pay $300m in bonuses...

2009-04-05T15:06:00.004+10:00

[April 4, 2009]
(theage.com.au) -- "US mortgage finance giants Fannie Mae and Freddie Mac plan to pay more than $US210 million ($A294 million) in bonuses through next year to give workers the incentive to stay in their jobs at the government-controlled companies.

"It's hard to see any common sense in management decisions that award hundreds of millions in bonuses when their organisations lost more than $US100 billion ($A140.2 billion) in a year,'' Mr Grassley said. "It's an insult that the bonuses were made with an infusion of cash from taxpayers.''

Fannie and Freddie declined to comment. Fannie had disclosed that it plans to pay four top executives at least $US1 million ($A1.4 million) each in retention payments that run through February. Freddie has yet to report on which executives are in line for the awards..."

Australia shares rise 2.8 pct; Qantas climbs...

2009-04-05T08:01:00.002+10:00

[Thursday April 2, 2009, 2:15 pm]
MELBOURNE, April 2 (Reuters) - "Australian shares rallied 2.8 percent on Thursday, with miners and banks pacing the gains, after U.S. economic data sparked optimism that the global economic downturn may be moderating. The benchmark S&P/ASX 200 index .AXJO rose 100 points to 3,679.7 by 0306 GMT after three days of losses which have taken 2.5 percent off the index. New Zealand's benchmark NZX 50 index .NZ50 rose 6.2 points or 0.2 percent to 2,575.4.

Qantas Airways Ltd (ASX: QAN.ax) shares rose 7.4 percent to A$1.825. The nation's top airline extended gains after saying it had changed the ownership structure of Singapore-based Jetstar Asia and Valuair to provide a new platform for growth..."

Virgin Blue flies...

2009-04-05T07:51:00.003+10:00

[Tuesday March 24, 04:16 PM]
WELLINGTON, March 24 (Reuters) - "Australian shares pared gains to be 1.1 percent higher on Tuesday, as initial enthusiasm over a U.S. plan to absorb $1 trillion of banks' toxic assets faded. An analyst said the initial rush was driven by Wall St rallying more than 6 percent, but was tempered as investors realised the benefits for most Australian stocks, with the exception of banks, would be indirect.

Airline Virgin Blue (ASX: VBA.ax) gained 18 percent, or 4 cents, to 26 cent, extending Monday's 10 percent gain, after signing a deal with United States carrier Delta Air Lines..."

India's scandal-hit Satyam to pick winning bid April 13...

2009-04-05T07:40:00.003+10:00

[Sunday April 5, 2009, 6:10 am]
NEW DELHI (AFP) - "India's scandal-tainted Satyam said Saturday it expected to announce the winner of bids for a majority stake in the struggling outsourcing giant on April 13.

Satyam's government-appointed board has been looking for a buyer to take a 51-percent stake to inject much-needed funds into the company, whose finances were left in shambles by India's biggest corporate fraud.

The company said it would open the bids on April 13 and announce the winner the same day..."

Australia shares at 3-month high on banks, miners...

2009-04-04T17:28:00.004+11:00

[Friday April 3, 2009, 5:28 pm, By Koh Gui Qing]
SYDNEY, April 3 (Reuters) - "Australian shares hit a three-month closing high on Friday as tentative hopes the global economy may have bottomed lifted investor confidence, spurring buying of top stocks such as miner BHP Billiton Ltd (ASX: BHP.ax) .

The benchmark S&P/ASX 200 index .AXJO rose 1.5 percent, or 55.4 points, to 3,735.6, based on the latest data available, the highest close since Jan. 9. It touched an intra-day high of 3,750.1, its best since Jan. 7.

New Zealand's benchmark NZX 50 index .NZ50 added 28.7 points, or 1.1 percent, to 2,614.5. "There is a bit of belief that this is the turning point," said Todd Kerslake, a private client adviser at Shaw Stockbroking. "Sentiment and confidence now is better than it was weeks ago."..."

Stocks extend 4-week rally; Dow breaches 8,000...

2009-04-03T09:13:00.007+11:00

[Sara Lepro, AP Business Writer, Thursday April 2, 2009, 6:00 pm EDT]
NEW YORK (AP) -- "Investors dove into stocks Thursday, extending a rally that gave the Dow Jones industrial average its best four weeks since 1933. Stocks rose across the board in heavy trading following an accounting rule change that will help banks pare their losses and after commitments from world leaders to toughen regulatory oversight of financial institutions.

The Dow broke through 8,000 for the first time since Feb. 9 but ended slightly below that level ahead of the government's employment report Friday that could easily upset the market if it comes in below forecasts -- or send prices rocketing higher if it's better than expected.

The Dow is now up 20.4 percent over the last month, its biggest percentage gain in a four-week period since the spring of 1933. Bits of good news about the economy in recent weeks, including better-than expected-numbers on housing and manufacturing, have given investors more reasons to buy..."

Lennar 1Q loss widens to $155.9M as revenue drops...

2009-03-31T16:36:00.004+11:00

[Alex Veiga, AP Real Estate Writer, Monday March 30, 2009, 11:10 pm EDT]
(finance.yahoo.com) -- "Homebuilder Lennar Corp. said Monday it's fiscal first-quarter losses ballooned 77 percent as it booked charges to adjust land and inventory values, while home deliveries and new orders plunged despite stepped-up buyer incentives.

The Miami-based company said it lost $155.9 million, or 98 cents a share, for the quarter that ended Feb. 28. That compares with a loss of $88.2 million, or 56 cents a share, in the same period last year. The latest results included 35 cents a share for write-offs and valuation adjustments and 36 cents a share for a tax asset valuation allowance. Excluding those adjustments, Lennar's loss was 27 cents a share.

Lennar shares climbed 9 cents to $8.80 in aftermarket trading following the release of the earnings report, which had been expected Tuesday morning. In the regular session, the stock had slipped $1.55, or about 15 percent, to close at $8.71..."

MGM Mirage making $200 million debt payment...

2009-03-28T06:27:00.004+11:00

[By Wallace Witkowski, Last update: 2:45 p.m. EDT March 27, 2009]
SAN FRANCISCO (MarketWatch) -- "MGM Mirage (MGM 2.85, -0.24, -7.8%) said Friday it is making a $200 million debt payment that allows continued construction of the $8.6 billion CityCenter development in Las Vegas. The company said the payment includes $100 million that should have come from MGM's CityCenter partner Dubai World, which sued MGM on Monday claiming a breach of contract.

MGM said it is still in talks with Dubai World and lenders to find a long-term financing solution for the development. Shares of MGM initially jumped about 10% then soon traded down 5.5% to $2.92 in recent activity..."

Banks lose $9.2B in derivatives trading in 4Q...

2009-03-28T06:23:00.004+11:00

[Friday March 27, 2009, 1:42 pm EDT ]
NEW YORK (AP) -- "Commercial banks lost $9.2 billion trading derivatives during the fourth quarter as the credit crisis intensified, according to a report released Friday by the Office of the Comptroller of the Currency.

Derivatives contracts include interest rate and foreign exchange contracts as well as credit default swaps -- a product that is essentially a bet against the performance of other types of investments. Credit default swaps have been at the heart of the credit crisis and a main reason for problems at Lehman and AIG..."

Geithner sends dollar on roller-coaster ride...

2009-03-26T11:21:00.005+11:00

[By Nick Godt, MarketWatch, Last update: 6:00 p.m. EDT March 25, 2009]
NEW YORK (MarketWatch) -- "Treasury Secretary Timothy Geithner shook markets Wednesday when some of his comments over China's call for a new global reserve currency led to confusion over U.S. policy and triggered a brief plunge in the dollar.

Speaking at a conference in New York, Geithner was asked his thoughts about comments from People's Bank of China Gov. Zhou Xiaochuan, who has called for a new international reserve currency to replace the dollar. Earlier this week, Zhou suggested that the International Monetary Fund's Special Drawing Right should be given a greater role. The SDR is an international reserve asset, created by the IMF in 1969 to support the Bretton Woods fixed exchange-rate system. Its value is based on a basket of key international currencies.

The dollar index ($DXY 83.69, -0.12, -0.1%) , which measures the U.S. unit against a trade-weighted basket of six major currencies, plunged about 1% in the minutes following Geithner's remarks..."

Administration seeks action on financial overhaul...

2009-03-26T10:37:00.002+11:00

[Martin Crutsinger, AP Economics Writer, Wednesday March 25, 2009, 12:42 pm EDT]
(finance.yahoo.com) -- "The administration wants Congress to act quickly on legislation that would give it sweeping new powers to seize financial firms whose collapse could jeopardize the U.S. economy, Treasury Secretary Timothy Geithner said Wednesday.

In a speech in New York, Geithner said the country should never again be faced with having to choose between a meltdown of the financial system and massive taxpayer bailouts..."

Arrow Energy Accepts BG Offer for Pure Energy...

2009-03-25T11:01:00.010+11:00

[Tuesday March 24, 2009, 8:57 am]
"Arrow Accepts BG Offer for Pure Energy Arrow Energy advised that it has accepted BG International's (AUS) offer for all of the Pure Energy Resources shares it owns. As Arrow's acceptance will take BG's ownership interest in Pure to over 90%, BG's additional conditional payment of $0.25 per share (taking total consideration payable by BG to $8.25 per share) will now be received by all shareholders who have accepted BG's offer

The Company reported that it will receive cash proceeds of over $215m and realise a profit of approx. $200m from its investment in Pure..."

IMF announces major lending reform...

2009-03-25T07:09:00.004+11:00

[By Veronica Smith, Tuesday March 24, 07:15 PM]
WASHINGTON (AFP) - "The International Monetary Fund on Tuesday announced a major overhaul of its lending practices to distressed countries, including launching a credit line without a cap or conditions."These reforms represent a significant change in the way the Fund can help its member countries -- which is especially needed at this time of global crisis," said IMF managing director Dominique Strauss-Kahn.

"More flexibility in our lending along with streamlined conditionality will help us respond effectively to the various needs of members. This, in turn, will help them to weather the crisis and return to sustainable growth," he said..."

That Was the Market Bottom...

2009-03-25T06:49:00.004+11:00

[Posted Mar 24, 2009 01:51pm EDT by Henry Blodget]
Related: ge, ^dji, fcx, arg, ^gspc
(The Business Insider) -- "Seabreeze partner Doug Kass thinks you may have just missed a generational market low (or, in any event, a cyclical bear-market one).

A classical wall of worry is being reinforced by an overwhelming consensus that the recent advance was a bear market rally. Moreover, the negative "chatter," as Jim "El Capitan" Cramer describes it, appears loosely constructed and fails to credibly argue against the salutary effect that $4 trillion of stimulus will have on the domestic economy.

Based on the 12 considerations comprising my watch list [see below], I respectfully disagree with the prevailing negative consensus, most of whose members failed to properly analyze the cracks in the foundation of credit, in the economy and in equities two years ago..."

Small caps round-up: Matra Petroleum...

2009-03-24T07:03:00.004+11:00

LONDON (ShareCast) - "Russia and central Europe-focused oil explorer Matra Petroleum (LSE: MTA.L) said it found itself in a 'difficult position' after seeing losses widen sharply amid the current market turmoil. The firm moved into losses of £8.7m in 2008, from £2m the previous year.

"In such market conditions, fledgling companies such as Matra that require further investment before moving to a steady cash flow position find themselves in a difficult position," it said.
It added that it would now concentrate on reducing overhead costs, delaying significant investment, safeguarding its main asset and ensuring it has sufficient funds to sustain the company..."

Uncertainty persists, even as stocks pull higher...

2009-03-24T05:22:00.003+11:00

[By Kate Gibson, MarketWatch, Last update: 12:24 p.m. EDT March 23, 2009]
NEW YORK (MarketWatch) -- "The stock market's latest bounce had the S&P 500 tallying its best three-day winning streak since late November, yet the CBOE Volatility Index -- which measures uncertainty -- edged only slightly lower, signaling ongoing wariness about the market's direction.

Typically, stocks and the VIX (VIX 43.18, -2.71, -5.9%) -- which represents the market's consensus view of the expected volatility of the S&P 500 over the next 30 days -- move in opposite directions. Pointing to the S&P 500's 15% rise since hitting a 12-year low in early March, the VIX on Friday closed at 45.89, down less than four points since it closed at 49.68 on March 9. "That's literally three points lower; that's a rounding error," said Dean Curnutt, president, Macro Risk Advisors.

In September, the VIX was trading in the 20-range, shooting to above 90 in late October, when many believed there was a risk of a complete meltdown of the financial system. And, while much remains unknown, government steps to stem the crisis have lessened the uncertainty, as well as the VIX level, which on Monday recently hit 42.28..."

Now, Indian banks' turn to tap investors...

2009-03-21T09:52:00.003+11:00

[By Narayanan Somasundaram and Michael Flaherty]
MUMBAI/HONG KONG (Reuters) - "As so many of their peers across the world have already done, Indian banks appear ready to hit up investors for more cash.

The country's lenders are expected to raise several billions of dollars in fresh equity over the next few quarters as bad debts rise and the government pressures them to boost lending.
Financial groups across Asia's third-largest economy are still relatively healthy compared with counterparts in the West and East. But they are burning through money quickly as the country's once red-hot economy slows, eating into profits.

All eyes are on banks with capital adequacy ratios (CAR) that fall below the government's minimum 9 percent standard. Bank of Maharashtra, Canara Bank and Dena Bank, all with tier-1 capital of less than 7 percent, are prime candidates for raising money, according to analysts..."

Fannie Mae CEO defends retention bonuses...

2009-03-21T08:52:00.003+11:00

[Friday March 20, 1:34 pm ET, By Alan Zibel, AP Real Estate Writer]
WASHINGTON (AP) -- "Mortgage giant Fannie Mae's chief executive warned Friday that canceling bonuses for workers at institutions receiving federal bailout money could undermine efforts to stabilize the U.S. housing market.

Herbert Allison, who was installed by government regulators as CEO of the Washington-based company last fall, sent a companywide e-mail Friday defending Fannie Mae's bonus program..."

Don Wright by Don Wright...

2009-03-20T13:26:00.002+11:00

(gocomics.com) -- "Don Wright, political cartoonist for The Palm Beach Post, is at the head of the class when it comes to editorial cartooning. He has twice won the Pulitzer Prize -- in 1980 and 1966 -- for his skill and insight. He is a five-time recipient of the Overseas Press Club Award for his cartoons on foreign affairs, and he is a two-time Reuben Award winner..."

Companies beef up security for annual meetings...

2009-03-20T10:00:00.003+11:00

[By Alistair Barr, MarketWatch, Last update: 6:30 p.m. EDT March 19, 2009]
SAN FRANCISCO (MarketWatch) - "U.S. companies are being advised to batten down the hatches for their annual meetings this year amid rising anger among investors and the public over bonuses, bailouts, layoffs and slumping share prices.

"There are a lot of angry people out there," said Patrick McGurn, special counsel at Institutional Shareholder Services, the corporate governance advisory unit of RiskMetrics Group (RMG: 13.52, +0.02, +0.2%) . "I've never seen violence at annual meetings in the U.S., but we've never seen such dislocation."..."

GE says finance unit is sound despite bad economy...

2009-03-20T09:28:00.002+11:00

[Thursday March 19, 5:06 pm ET By Stephen Manning, AP Business Writer]
WASHINGTON (AP) -- "General Electric Co. assured investors Thursday that its financial unit is stable and will at least break even this year, even under a worst-case scenario of double-digit unemployment and a sharper slump in the economy.

One the world's biggest companies, the Fairfield, Conn.-based GE makes everything from light bulbs to jet engines, but last year it generated nearly half its $18 billion in earnings from GE Capital, its finance arm. Fears that the business, which finances credit cards, airplanes, factories and overseas mortgages, could see big losses on loans gone bad, have helped pushed down GE stock 71 percent in the past year..."

India's growth slowing dramatically: IMF...

2009-03-19T06:57:00.004+11:00

[Wednesday March 18, 09:05 AM, Source: Financial Express]
(in.biz.yahoo.com) -- "India's economy is slowing dramatically and uncertainty surrounding the outlook is unusually large, the International Monetary Fund said on Tuesday.

The IMF forecast that India's gross domestic product growth would slow to 6.3 per cent in the 2008-2009 fiscal year, ending in March, and to 5.3 per cent the following year. That would be well below the 9 per cent growth rate in the 2007-2008 year.

"Policy measures to stimulate the economy and a good harvest should support domestic demand," the IMF said. "The uncertainty surrounding the forecast is unusually large, with significant downside risks. The main upside risk stems from a larger-than-anticipated impact of the stimulus measures that the authorities have already implemented."..."

Rio Tinto pins recovery hopes on China...

2009-03-19T06:50:00.004+11:00

[Tuesday March 17, 2:45 PM]
"Mining giant Rio Tinto Tuesday predicted the global economy would remain difficult for two years, pinning hopes for an upturn on China, which it said may surprise markets with the strength of its recovery.

Economic growth in China is expected to slow further in 2009 before investment starts to gain strength in the second half of the year, the Anglo-Australian firm said in its annual report, released Tuesday. Company executives also stressed the importance of a proposed 19.5 billion US dollar deal with China's Chinalco -- Beijing's largest ever foreign investment.

Chief executive Tom Albanese said demand for Rio's products collapsed in the final quarter of 2008 as China's economy slowed more rapidly than expected "However, we hope to see some recovery in Chinas gross domestic product in the second half of this year," he said. He said recent problems had not changed Rio's long-term outlook for China, arguing hundreds of millions of people would need new homes, schools, factories and infrastructure as the Asian giant's cities expanded over the next 20 years..."

Australia shares to extend rally on Wall St surge...

2009-03-18T13:12:00.003+11:00

[Wednesday March 18, 2009, 8:05 am]
SYDNEY, March 18 (Reuters) - "Australian shares are seen opening firmer on Wednesday, extending their rally to a fourth session, on the back of strong gains on Wall Street.

The U.S. market got a lift from better-than-expected housing data, which further bolstered a more optimistic view on the economy that has emerged in recent days.

Australia's March share price index futures contract YAP rose 27 points to 3,506 -- a premium of 54.1 points, or 1.6 percent, to the close in the benchmark index ^AXJO on Tuesday, when the market jumped 3.1 percent to a one-month closing high..."

TSX closes up for gain of 13 per cent over six days; New York also higher...

2009-03-18T13:01:00.003+11:00

[Tue Mar 17, 4:54 PM, By Malcolm Morrison, The Canadian Press]
TORONTO - "The Toronto stock market roared ahead to a sixth consecutive session of solid gains as investors continued to snap up financial stocks while the energy sector also made a big contribution as crude approached the US$50 a barrel level. A surprisingly upbeat report Tuesday on housing starts in the United States also helped New York markets get back in the groove, rising sharply after a four-day advance faltered Monday.

Toronto's S&P/TSX composite index closed up 172.89 points to 8,559.6, adding up to a 13 per cent surge over six days. The financial sector is up more than 28 per cent over that time..."

A Chastened Wall Street Emerges...

2009-03-18T10:10:00.004+11:00

[by Alistair Barr, Monday, March 16, 2009]
(MarketWatch.com) -- "One year since the collapse of Bear Stearns, a leading Wall Street analyst took time to revisit one of his memos. "I just read the worst piece of research I've ever written," Brad Hintz said of his memo.

The piece was from August 2007 and the mortgage-fueled credit crisis had just gotten underway. In it Hintz, a Bernstein Research analyst, warned of pain to come, but he also asserted that Wall Street's top firms -- Goldman Sachs (GS) Morgan Stanley (MS) Merrill Lynch, Lehman Bros. (LEHMQ) and even Bear Stearns -- had the risk-management expertise and liquidity to survive.

What unfolded in the ensuing months was a historic financial meltdown that showed Hintz and many other experts were way off the mark about the soundness of the nation's leading brokerages..."

LIC goes shopping, doubles stake in SBI...

2009-03-18T09:50:00.006+11:00

[Tuesday March 17, 11:28 AM, By Banking Bureau]
(Indian Express Finance) -- "The 'big bull' of the Indian equity market, state-owned Life Insurance Corporation (LIC), has gone on a value hunt in the rock-bottom stocks market, lending support to blue chip banking stocks. LIC, India's largest institutional investor, has raised its stake in most Indian banks over the last four months.

On Monday, LIC informed the Bombay Stock Exchange (^BSESN) that it has raised its stake in the country's largest bank, State Bank of India (SBIN.NS), to 9.16%, from 4.58% in December 2008 nearly doubling the stake in a space of less than three months.

The corporation continues to provide support to the banking sector stocks each time they slip, say analysts..."

Did You Just Miss the Bottom?...

2009-03-14T08:49:00.004+11:00

[Posted Mar 13, 2009 10:56am EDT by Henry Blodget]
Related: ^dji, ^gspc, spy
(The Business Insider) -- "After an 11% three-day pop, the DOW's over 7000 again. The higher it goes, the more people will turn bullish. In fact, we expect to hear the mantra on CNBC to become "we're in a bottoming process" any day now.

(In December, when the market soared off the November lows, pundit after pundit said we were in a "bottoming process." In the past two months, they came to the same conclusion the WSJ did: DOW 5000. Now, if the market keeps rising, they'll get more bullish again.)

So which is it?

Are you convinced this is just yet another sucker's rally and holding out for DOW 5000? Or did we just see the start of a great new bull market, that many folks have just missed the first 11% of?..."

IMF warns of global "Great Recession"...

2009-03-11T14:39:00.005+11:00

[Tue Mar 10, 2009 11:53am EDT, By Lesley Wroughton and George Obulutsa]
DAR ES SALAAM (Reuters) - "The International Monetary Fund warned on Tuesday that the world economy will likely contract this year in a "Great Recession" and African leaders said the financial crisis could undo hard-won social-economic gains.

"The IMF expects global growth to slow below zero this year, the worst performance in most of our lifetimes," IMF Managing Director Dominique Strauss-Kahn told African political and financial leaders in the Tanzanian capital.

"Continued deleveraging by world financial institutions, combined with a collapse in consumer and business confidence is depressing domestic demand across the globe, while world trade is falling at an alarming rate and commodity prices have tumbled," Strauss-Kahn added..."

NAB Says Slump to Deepen...

2009-03-11T14:34:00.002+11:00

[Wednesday March 11, 2009, 8:19 am]
(au.biz.yahoo.com) -- "The National Australia Bank has further cut its forecasts for the local economy for the next two years after its latest business survey (see next story) found a sharp downturn in business conditions, especially in the outlook for employment. This will lead to the Reserve Bank cutting rates by a bit more than expected: another 1.25% over the rest of 2009.

"We have lowered Australian GDP forecasts in 2009 to -1% and to +0.9% in 2010. The bank said, indicating that it still sees a rebound next year. "These lower growth forecasts reflect the poor start point in late 2008 and early 2009, together with forecast weaker exports and business investment as the global economy / trade shrink further and business cuts back on employment and capex," the NAB said yesterday.

The bank says it now sees unemployment worsening "faster and further reaching 6.5% by end 2009 and 7.5% by late 2010..."

Sentiment Overview: Week Of March 6th, 2009...

2009-03-11T09:33:00.003+11:00

(tradersnarrative.com) -- "Investors Intelligence: This week’s ChartCraft’s survey of stock newsletter writers delivered only 29.7% bulls - up slightly from last week. And almost unchanged from last week, 44% bears.

Market Vane: Market Vane dropped again to the low 30’s - a level last seen in October to November 2008 when the market made a short term spike down. That’s relatively low but not on an absolute level since it fell to sub-20 readings in the last bear market bottom between 2002-2003. To read more about Market Vane and its origins, check out A Brief History of Contrarian Analysis.

AAII: But the most fascinating and historic reading comes to us from the AAII weekly survey. The latest American Association of Individual Investors (AAII) data shows what can only be describe as total and utter capitulation. As of Wednesday (March 4th, 2009) 70% expected the market to continue to fall, while only 19% continue to see better times ahead.
The only data point from the AAII survey that approaches this level of gloom is back in October 19th, 1990 when a paltry 13% of respondents were bullish and 67% were bearish..."

Dow ends up nearly 380 on Citigroup profit news...

2009-03-11T08:58:00.005+11:00

[Tuesday March 10, 4:36 pm ET By Sara Lepro and Tim Paradis, AP Business Writers]
NEW YORK (AP) -- "Wall Street has had its best day of the year, storming higher after some good news from Citigroup. Citigroup Inc. says it operated at a profit during the first two months of the year. That energized financial stocks and in turn, the entire stock market. Surprised investors drove the major indexes up more than 5.5 percent to their biggest one-day rally of the year. The Dow Jones industrials shot up nearly 380 points.

However, "to have a sustained rally, we have to have a shift in sentiment," said Kurt Karl, chief U.S. economist at Swiss Re. "One day isn't going to make a trend."..."

Rogue Merrill Trader Hid $400 Million Loss...

2009-03-08T07:04:00.004+11:00

[Henry BlodgetMar. 7, 2009, 7:31 AM]
Tags: Wall Street, Financial Services, Bank of America, Merrill Lynch
(businessinsider.com) -- "Merrill has discovered that a London-based trader who said he made $120 million last year actually lost $400 million. Merrill describes this as "an irregularity." The trader described it as "a misunderstanding."

A Merrill Lynch currency trader has been suspended after racking up more than $400m in undisclosed losses in recent months, raising further questions about the financial health of the investment bank bought by Bank of America last September.

Merrill is poring over the books of Alexis Stenfors, a London currency trader, who was suspended after Norwegian and Swedish currency trades went wrong, according to people familiar with the situation. Merrill is in talks with UK regulators..."

BNP reaches new deal to buy Fortis Bank...

2009-03-08T06:48:00.002+11:00

[By Simon Kennedy & Michael Kitchen, MarketWatch'Last update: 11:18 a.m. EST March 7, 2009]
LONDON (MarketWatch) -- "BNP Paribas SA has reached a deal to buy the majority of Fortis Bank NV from the Belgian government, along with an interest in Fortis' insurance business, in exchange for official guarantees against losses, Fortis said Saturday.

BNP and Belgium reached the new agreement before a Friday midnight deadline, with France's biggest bank now set to buy 75% of Fortis Bank NV -- the group's Belgian banking business -- and to take control of its Luxembourg bank outright, all for 2.88 billion euros ($3.64 billion) in stock.

The deal also calls for Fortis Bank to take a 25% stake of the Fortis group's (BE:FORB: news , chart , profile ) Belgian insurance unit for 1.375 billion euros in cash, with BNP (FR:BNP: news , chart , profile ) guaranteeing the financing..."

Japan stock index hits 25-year low...

2009-03-06T19:57:00.003+11:00

[By Eric Burroughs]
HONG KONG (Reuters) - "Japan's broad TOPIX stock index slid to a 25-year low on Friday after a warning from General Motors about possible bankruptcy slammed Wall Street, but hopes for more stimulus spending in China limited losses in most Asian markets.

World stocks struck a six-year low on the drop in Japan, which was led by shares in the country's big exporters and banks, with investors spooked after shares in Citigroup fell below $1 the previous day.

"I'm worried about America, and the place where we can place our hopes now is China," said Yoku Ihara, manager at Retela Crea Securities in Tokyo, adding that he was concerned about the progress of the U.S. economic stimulus plans..."

Australia shares sink as global gloom intensifies...

2009-03-06T19:26:00.006+11:00

[Friday March 6, 2009, 5:11 pm, By Miranda Maxwell]
MELBOURNE, March 6 (Reuters) - "Australian shares fell 1.4 percent on Friday to their lowest close since August 2003, led down by banks and miner BHP Billiton Ltd (ASX: BHP.ax) as concerns over the health of the global economy continued to weigh.

U.S. stocks hit fresh 12-year lows on Thursday. "It was kicked off by the U.S. and the dreadful numbers coming out of the market there. The market's getting very rattled about the inability of the (U.S.) administration to deal with the financial situation," said Robert Hook, portfolio manager with S.G. Hiscock & Co. "Everyone is now completely convinced it's a longer and deeper recession at this stage. Investors are looking into early next year and not seeing particularly good news," he said.

The benchmark S&P/ASX 200 index .AXJO fell 43.0 points to 3,145.5, according to the latest available data, taking losses for the week to 6 percent -- the biggest weekly loss since early December..."

Linc Energy Limited (ASX:LNC) Update Increase In The Chinchilla Coal Resource...

2009-03-06T19:20:00.001+11:00

[Friday March 6 6:15 PM]
Brisbane, Australia, Mar 6, 2009 - (ABN Newswire) - "Linc Energy Limited (ASX: LNC.AX)(PINK:LNCYF) can report that it has increased its coal resource estimate for its Chinchilla project area which currently lies within MDL 309, EPC 635 and EPC 897.

The Chinchilla deposit is now estimated to contain a total coal resource of 775 million tonnes in accordance with the JORC code". Of this total resource,24 million tonnes are in the 'Measured' category, 383 million tonnes are in the 'lndicated' category and 368 million tonnes are in the 'lnferred' category..."

Crash Of 2008 Now Worse Than Crash Of 1929...

2009-03-06T19:09:00.006+11:00

[Henry BlodgetMar. 5, 2009, 8:49 PM]
Tags: Investing, Stocks, Stock Market, S&P 500, Editors' Picks, Depression, Markets
(businessinsider.com) -- "We just hit another milestone. The market has now fallen farther faster than it did during the Great Crash of 1929-1932.

It has been 513 calendar days since the stock market peaked on Oct. 9, 2007. Since then, the S.&P. 500 is down 56 percent and the Dow is off 53 percent. On Jan. 29, 1931 — the identical number of days after the 1929 market peak — the S.&P. 500 was down 49 percent and the Dow was down 56 percent. The 1929 crash got off to a much faster start, but we have now more or less caught up.

And here's a chart by Doug Short at dshort.com that illustrates the point..."

Warren Buffett's Fundamental Weakness...

2009-03-05T12:38:00.004+11:00

[Posted Mar 04, 2009 02:56pm EST by Aaron Task]
Related: BRK-A, BRK-B, ^DJI, ^GSPC, GS, DIA, BBY
(YHOO) -- "Warren Buffett made headlines and raised eyebrows last October with his bold "Buy American, I Am" op-ed in The New York Times.

Since then, Buffett has come under criticism for being early on his bullish call: Even after today's rally the Dow is down about 23% since his NYT piece on Oct. 16.

Not putting his money where hits mouth is: Buffett was a big buyer of stakes in GE, Goldman Sachs and Wrigley's in late 2008, but those were preferred shares with terms only available to him, not common shares like for the rest of us..."

ASIC extends short selling ban...

2009-03-05T10:30:00.002+11:00

[Thursday March 5, 2009, 10:21 am]
(au.biz.yahoo.com) -- "The Australian Securities and Investments Commission (ASIC) has announced it will extend the ban on short selling of financial securities until the end of May. Short selling involves traders selling a stock they do not own in the hope of buying it back later at a cheaper price and pocketing the difference.

ASIC says it weighed up the continued volatility in global financial markets and potential damage from predatory short selling, against the possible loss of some market efficiency. It says the loss of efficiency is justified given the current market circumstances.

The ban was due to be lifted tomorrow. ASIC says it will keep reviewing the position..."

Ford tumbles...

2009-03-05T10:28:00.003+11:00

[By Carla Mozee, MarketWatch, Last update: 5:36 p.m. EST March 4, 2009]
LOS ANGELES (MarketWatch) -- "Shares of Ford Motor Co. slid Wednesday evening after the company offered to convert certain debt securities into stock, while Adobe Systems Inc. shares rose after the software maker said a revenue shortfall won't results in its missing first-quarter
earnings estimates.

Ford (F 1.87, +0.06, +3.3%) tumbled 14% to $1.61 in heavy volume of nearly 2.5 million shares exchanged. The company said it will offer bondholders stock and a cash premium to convert debt securities into common stock as it seeks to lighten its debt burden.

It also said it's making a $1.3 billion cash tender offer to those holding certain unsecured debt notes, and a separate $500 million cash tender offer to buy senior secured term loan debt. The plan follows a tentative deal with the United Auto Workers that, if ratified, will allow Ford to lower its hourly labor costs and use equity to pay its health-care trust obligations..."

Shoe by Chris Cassatt and Gary Brookins...

2009-03-04T07:45:00.003+11:00

(gocomics.com) -- "Whether they are arguing about The Perfesser’s bad writing or offering each other advice on the opposite sex, Shoe's treetop crew of characters maintains a comical, spirited banter."

The End of 'Irrational Exuberance,' But Not Short-Term Bottom Picking...

2009-03-04T07:36:00.002+11:00

[Posted Mar 03, 2009 01:41pm EST by Aaron Task]
Related: ^dji, ^gspc, QQQQ, SPY, DIA, AIG, XLF
(YHOO) -- "A day after slumping to their lowest levels since before Alan Greenspan's infamous "irrational exuberance" comment in December, stocks were struggling to rebound Tuesday. Heading into the session some traders were betting on a short-term bounce (at least) based on the S&P's ability to close (barely) above 700 yesterday, as well as bullish comments from noted bear Doug Kass of Seabreeze Partners.

In sum, Wall Street traders remain more worried about missing the next rally vs. getting caught in another downdraft, which tells you something about the state of sentiment. So too does the continued strength in the dollar and Treasuries, which are benefiting from a "flight to safety" trade even as gold slips from its recent peak above $1000..."

Textron shares fall to 30-year lows...

2009-03-04T07:32:00.003+11:00

[By Christopher Hinton, Last update: 3:03 p.m. EST March 3, 2009]
NEW YORK (MarketWatch) -- "Shares of Textron Corp. (TXT: 4.46, +0.03, +0.7%) were trading at 30-year lows Tuesday on rising concerns of a credit-rating downgrade and a default on its debt. The cost of insuring Textron debt has soared to 1,298.7 basis points as of Monday from 118 basis points a year ago, according to data provided by CMA, a credit information service.

The cost to protect its debt has been increasing steadily since mid-September when the collapse of Lehman Brothers (LEHM.Q) caused financial markets to seize. Shares of Textron have since plunged more than 90% to trade Tuesday at an all-time low of $3.63 each..."

Govt moves to aid AIG yet again...

2009-03-04T07:29:00.004+11:00

[Monday March 2, 6:39 pm ET By Jeannine Aversa and Ieva M. Augstums, AP Business Writers]
WASHINGTON (AP) -- "A new definition of desperate times: Even as the government threw a stunning new $30 billion lifeline to American International Group on Monday, the beleaguered insurance giant confirmed it had lost more than twice that much, $62 billion, in a single three-month period.

And many more billions of federal dollars are almost sure to be shoveled into the company for a simple reason: Officials fear its collapse would cripple financial markets in the U.S. and around the world.

The source of trouble for AIG, which has 74 million customers worldwide and operations in more than 130 countries, is its business insuring mortgage-backed securities and other debt against default. That business imploded once the credit crisis struck with force..."

Lloyds hit by HBOS impairments, forecasts loss for 2009...

2009-02-27T19:51:00.002+11:00

[By Simon Kennedy, Last update: 2:32 a.m. EST Feb. 27, 2009]
LONDON (MarketWatch) -- Lloyds Banking Group (UK:LLOY 68.50, -6.50, -8.7%) said Friday that net profit at its Lloyds TSB business fell 75% in 2008 to 819 million pounds ($1.17 billion) from 3.29 billion pounds. The group's HBOS arm, which it acquired in January this year, swung to a net loss of 7.58 billion pounds in 2008, from a profit of 4 billion pounds a year earlier as impairment losses on loans soared to 9.9 billion pounds from 2.01 billion pounds.

Lloyds said it is in advanced talks with the U.K. Treasury about participation in the government's asset protection scheme and will provide a further update in due course. Lloyds said it expects retail impairment levels to rise significantly in 2009 and that the combined group will report a loss in 2009 before the impact of any goodwill write-downs..."

Fannie Mae seeks $15.2B in US aid after 4Q loss...

2009-02-27T19:27:00.003+11:00

[Thursday February 26, 7:12 pm ET By Alan Zibel, AP Real Estate Writer]
WASHINGTON (AP) -- "Fannie Mae said Thursday it needs $15.2 billion in government aid -- though that figure is expected to grow -- because it lost nearly $59 billion last year as the foreclosure crisis mushroomed.

The Washington-based mortgage finance company hemorrhaged $25.2 billion, or $4.47 per share, in the fourth quarter. That compares with a loss of $3.6 billion, or $3.80 a share, in the year-ago period.

Fannie's net worth -- the value of its assets minus the value of its liabilities -- fell below zero at the end of the quarter, forcing the company to request funding from the government for the first time..."

The S&P Gets Its Earnings Wrong...

2009-02-26T15:25:00.003+11:00

[By JEREMY J. SIEGEL]
(online.wsj.com) -- "Standard & Poor's recently shocked investors with an announcement that reported earnings for its S&P 500 Index for the fourth quarter of 2008 are forecast to be negative for the first time since such data were calculated in 1936. S&P further reports that for all of 2008, earnings are expected to be less than $40 per share, indicating that the market now has a price/earnings ratio over 20, well above its historical average of 15.

What this dismal news actually reflects is the bizarre way in which S&P (and most other index providers) calculate "aggregate" earnings and P/E ratios for their indexes. Unlike their calculation of returns, S&P adds together, dollar for dollar, the large losses of a few firms to the profits of healthy firms without any regard to the market weight of the firm in the S&P 500. If they instead weight each firm's earnings by its relative market weight, identical to how they calculate returns on the S&P 500, the earnings picture becomes far brighter..."

DreamWorks 4Q profit falls...

2009-02-25T10:15:00.004+11:00

[Tuesday February 24, 5:08 pm ET By Rachel Metz, AP Technology Writer]
NEW YORK (AP) -- "DreamWorks Animation SKG Inc. said Tuesday that its fourth-quarter profit fell as revenue sank 31 percent.

The Glendale, Calif.-based creator of "Kung Fu Panda" said it earned $51.6 million, or 58 cents per share, down 45 percent from $94.1 million, or 98 cents per share, in the year-earlier quarter. The company's revenue fell to $199.8 million from $290.2 million in the year-earlier quarter. Analysts polled by Thomson Reuters expected a profit of 60 cents per share on $232.5 million in revenue.

DreamWorks Animation shares fell 75 cents, or 3.8 percent, in after-hours trading, after finishing regular trading up 85 cents, or 4.5 percent, at $19.76..."

Major stock market indexes fall to 1997 levels...

2009-02-24T11:50:00.003+11:00

[Monday February 23, 6:31 pm ET By Tim Paradis, AP Business Writer]
NEW YORK (AP) -- "Wall Street has turned the clock back to 1997. Investors unable to extinguish their worries about a recession that has no end in sight dumped stocks again Monday. The Dow Jones industrial average tumbled 251 points to its lowest close since May 7, 1997, while the Standard & Poor's 500 index logged its lowest finish since April 11, 1997. It's as if the decade's dot-com surge, collapse and subsequent recovery never occurred.

The Dow is just over 100 points from 7,000. Both indexes have lost about half their value since hitting record highs in October 2007.

"People left and right are throwing in the towel," said Keith Springer, president of Capital Financial Advisory Services..."

IMT reports 39 per cent rise in profit...

2009-02-23T20:06:00.005+11:00

[Monday February 23, 2009, 6:35 pm]
(AAP) -- "Iress Market Technology Ltd has reported a 39.8 per cent rise in annual profit and says earnings can grow modestly this year, despite difficult conditions for its financial markets clients. The provider of market trading information on Monday said net profit for calendar 2008 rose to $35.62 million, from $25.48 million in 2007.

Total revenue rose 21.9 per cent to $165.10 million, as earnings before interest, tax, depreciation and amortisation (EBITDA) grew 25.2 per cent to $76.49 million..."

Australia shares drop 1.5 pct; Rio Tinto takes hit...

2009-02-23T17:21:00.005+11:00

[Monday February 23, 2009, 4:16 pm]
SYDNEY, Feb 23 (Reuters) - "Australian stocks ended down 1.5 percent on Monday, dragged by a big loss for miner Rio Tinto (ASX: RIO.ax) , but recovered from earlier lows on a report the U.S. government may raise its holding in Citigroup C. The benchmark S&P/ASX 200 index .AXJO lost 51.2 points to 3,351.2, based on the latest available date, having fallen as low as 3,312.6.

New Zealand's benchmark NZX 50 index .NZ50 fell 1.5 percent to 2,538.3. (Reporting by Mette Fraende)..."

GM shares hit 70-year low...

2009-02-21T14:02:00.009+11:00

[Saturday February 21, 2009, 7:09 am]
(AAP) -- "General Motors shares are at their lowest point in more than 70 years as speculation continues to swirl about the future of the struggling automaker. General Motors Corp shares hit a low of $US1.57 ($A2.44) in afternoon trading on Friday, matching a low set on March 31, 1938

That's according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes. Shares of the Detroit-based automaker have tumbled in recent weeks, falling from $US3.50 ($A5.44) a month ago..."

MyState Financial and Tasmanian Perpetual Trustees merger...

2009-02-21T12:56:00.008+11:00

[21 January 2009]
(my.state.com.au) -- "The Chairman of MyState Financial, Tony Reidy, today announced that the Merger Implementation Agreement with Tasmanian Perpetual Trustees Limited has been amended.

MyState Financial and Tasmanian Perpetual Trustees announced in October 2008 a proposal to merge via dual scheme of arrangement to create MyState Limited, a Tasmanian based, fully integrated financial services company.

Since signing the Agreement, the Boards of MyState Financial and Tasmanian Perpetual Trustees have completed due diligence which revealed the impact of the ongoing volatility in the equity markets. As a result of this, they have amended the original Agreement: the proposed valuation ratio in the merged entity, MyState Limited, has been changed to 67.5 percent for MyState Financial's members and 32.5 percent for Tasmanian Perpetual Trustees' shareholders..."

Nestle shares advance in higher Europe...

2009-02-19T22:36:00.003+11:00

[By Sarah Turner, MarketWatch, Last update: 3:48 a.m. EST Feb. 19, 2009]
LONDON (MarketWatch) - "European shares gained on Thursday, on track to close higher for the first time this week, as investors welcomed earnings from Nestle and other major firms.

The pan-European Dow Jones Stoxx 600 index (ST:SXXP: news , chart , profile ) rose 0.4% to 184.07, with food producers in the lead after Nestle (CH:NESN: news , chart , profile ) shares jumped 3.7%.

The world's largest food and beverages company raised its dividend after reporting a 69% rise in 2008 net profit to 18.04 billion Swiss francs ($15.4 billion) due to higher sales and asset sales. The maker of Nescafe soluble coffee and KitKat chocolate bars said it expects to post organic growth of "at least approaching 5%," in 2009..."

World markets rise but sentiment remains fragile...

2009-02-19T22:32:00.002+11:00

[Thursday February 19, 6:23 am ET By Pan Pylas, AP Business Writer]
LONDON (AP) -- "European and Asian markets rose modestly Thursday following the previous session's gains on Wall Street but optimism remained very thin on the ground despite policy measures by governments around the world.

The FTSE 100 index of leading British shares was up 22.47 points, or 0.6 percent, at 4,029.30, while Germany's DAX was 34.88 points, or 0.8 percent, higher at 4,239.84. The CAC-40 in France rose 8.91 points, or 0.3 percent, to 2,882.98.

Earlier, Tokyo's Nikkei 225 stock average closed up 23.21 points, or 0.3 percent, at 7,557.65, while Hong Kong's Hang Seng finished 0.1 percent higher at 13,023.36..."

GM, Chrysler seek more govt aid, to cut more jobs...

2009-02-18T10:39:00.003+11:00

[Tuesday February 17, 6:36 pm ET By Tom Krisher and Ken Thomas, Associated Press Writers]
DETROIT (AP) -- "The U.S. auto industry needs even more help from the government to survive than originally thought. General Motors on Tuesday said it could need up to $30 billion from the Treasury Department to keep operating. Included in that amount is $13.4 billion the company has already received. Previously, GM had said it could need as much as $18 billion.

General Motors Corp. and Chrysler LLC said Tuesday they'll need billions more in government loans than they predicted just two months ago. The two automakers also plan further job cuts and additional curtailment of auto production.

Both companies plan to reduce the number of models they offer to car buyers over the next few years..."

Crude oil is getting cheaper -- so why isn't gas?...

2009-02-16T08:12:00.003+11:00

[Sunday February 15, 12:30 pm ET By Chris Kahn and John Porretto, AP Energy Writers]
NEW YORK (AP) -- "Crude oil prices have fallen to new lows for this year. So you'd think gas prices would sink right along with them.

Not so.

On Thursday, for example, crude oil closed just under $34 a barrel, its lowest point for 2009. But the national average price of a gallon of gas rose to $1.95 on the same day, its peak for the year. On Friday gas went a penny higher. To drivers once again grimacing as they tank up, it sounds like a conspiracy. But it has more to do with an energy market turned upside-down that has left gas cut off from its usual economic moorings.

The price of gas is indeed tied to oil. It's just a matter of which oil.

The benchmark for crude oil prices is West Texas Intermediate, drilled exactly where you would imagine. That's the price, set at the New York Mercantile Exchange, that you see quoted on business channels and in the morning paper.

Right now, in an unusual market trend, West Texas crude is selling for much less than inferior grades of crude from other places around the world. A severe economic downturn has left U.S. storage facilities brimming with it, sending prices for the premium crude to five-year lows. But it is the overseas crude that goes into most of the gas made in the United States. So prices at the pump will probably keep going up no matter what happens to the benchmark price of crude oil..."

Coca-Cola 4Q profit down on charges, strong dollar...

2009-02-13T08:59:00.002+11:00

[Thursday February 12, 5:28 pm ET By Vinnee Tong, AP Business Writer]
NEW YORK (AP) -- "Coca-Cola Co. said Thursday that its fourth-quarter profit fell 18 percent as it felt the effect of the stronger dollar and took several write-downs, but the world's largest soft drink maker sold more of its products around the world.

The results -- including a 4 percent increase in worldwide case volume -- beat Wall Street estimates, and Coca-Cola's shares rose 7.6 percent to end at $44.39. The seller of Sprite, Fanta, VitaminWater, Minute Maid orange juice and Nestea also plans to accelerate spending cuts and said it will save $500 million a year by 2011.

The Atlanta-based company earned $995 million, or 43 cents per share, in the quarter ended Dec. 31, down from $1.21 billion, or 52 cents per share, a year earlier..."

Seven years of wealth gains gone...

2009-02-13T07:57:00.001+11:00

[By Rex Nutting, MarketWatch, Last update: 3:46 p.m. EST Feb. 12, 2009]
WASHINGTON (MarketWatch) - "The nest egg of the typical American family is smaller now than it was seven years ago, according to Federal Reserve data released Thursday. The inflation-adjusted net worth of the typical family increased 17.7% to $120,300 from 2004 through 2007, the Fed said Thursday in its Survey of Consumer Finances, the most detailed look at family finances available.

Net worth is defined as assets minus liabilities.

"But a lot has happened" since the end of 2007, a Fed economist said. As of October, median net worth had fallen to $98,900, down 3.2% from the end of 2007 and 2% below the level reported in the 2001 survey that was conducted after the dot.com bubble burst. Since October, stock prices have fallen another 15%, while home prices have fallen at least 2%.

The Fed survey is conducted every three years. The median is a midpoint, with half of the households in the nation worth more and half worth less..."

Oil tumbles below $34 a barrel on economic fears...

2009-02-13T07:50:00.004+11:00

[Thursday February 12, 3:22 pm ET By Mark Williams, AP Energy Writer]
COLUMBUS, Ohio (AP) -- "Oil prices slid to a new low for the year Thursday because of growing doubts that the $789 billion stimulus package will reinvigorate the U.S. economy and demand for energy.

Crude supplies in the U.S. reached an 82-week high last week, according to the Department of Energy, showing just how far demand has fallen.

Light, sweet crude for March delivery tumbled $1.96, more than 5 percent, to settle at $33.98 a barrel on the New York Mercantile Exchange. Since Monday, the price for a barrel of oil has fallen nearly 20 percent. Crude last settled below $34 a barrel two months ago..."

Starbucks’ Shares Cool Off...

2009-02-12T08:00:00.004+11:00

[Market Movers by Will Swarts]
(smartmoney.com) -- "Investors declined to stock up on Starbucks (SBUX: 9.99*, +0.09, +0.90%) shares after the coffee chain said it will lower the prices of some breakfast items to better fit customers’ recession-strained budgets. Starting next month the Seattle-based company will offer $3.95 breakfast and coffee selections. The new options could potentially save consumers $1.20.

The company has been scrambling to battle consumer perception that it’s merely a purveyor of $4 foamy coffee by adding a selection of food items to its menu. Meanwhile, its core coffee business has been under attack by places like McDonald’s (MCD: 57.09*, -0.19, -0.33%). Over the last several years McDonald’s has boosted its own specialty coffee offerings.

Entering the food business has been a controversial decision for the company. “I’ve always said that Starbucks will always be a good premium coffee company,” says Greg Schroeder, an analyst at Wisco Research in Madison, Wis. “But by expanding into food I don’t think that’s their core competency.”..."

Stocks hold slight gains as lawmakers mull financial trouble...

2009-02-12T07:52:00.002+11:00

[By Kate Gibson, Last update: 3:48 p.m. EST Feb. 11, 2009]
NEW YORK (MarketWatch) -- U.S. stocks on Wednesday remained slightly higher as investors wavered between cheer over an economic stimulus deal and Senate hearings about the troubled financial system. The Dow Jones Industrial Average ($INDU: 7,888.88, -381.99, -4.6%) was up 24.29 points at 7,913.17. The S&P 500 ($SPX: 830.61, +3.45, +0.4%) tilted 2.88 points higher to 830.04, and the Nasdaq Composite (COMP: 1,526.04, +1.31, +0.1%) climbed fractionally to 1,525.14..."

Credit Suisse reports worse-than-expected 4Q loss...

2009-02-11T20:28:00.005+11:00

ZURICH (AP) -- "Credit Suisse Group reported a fourth-quarter net loss Wednesday of 6 billion Swiss francs ($5.61 billion) as both asset management and investment banking posted large deficits. Net loss per share for the quarter was 5.34 francs.

The results were far worse than the 3.72-billion-franc loss analysts had excepted. Switzerland's second biggest bank said the results take its full-year net loss to 8.2 billion francs for 2008. A year earlier Credit Suisse had reported a net profit of 7.8 billion francs.

The investment bank racked up a pretax loss of 7.78 billion francs in the fourth quarter, which included writedowns of 3.19 billion francs. Credit Suisse said it has reduced its exposure to risky assets by 87 percent between the end of the third quarter of 2007 and the start of this year..."

Pier 1 shares climb after job cuts...

2009-02-05T14:51:00.004+11:00

[Wednesday February 4, 9:02 pm ET]
CHICAGO (AP) -- "Shares of home decor chain Pier 1 Imports Inc. rose nearly 6 percent Wednesday, a day after the company said it was slashing its work force, closing a distribution center and trying to renegotiate lower store rents.

Shares of the Fort Worth, Texas-based chain climbed 2 cents, or 5.7 percent, to end at 33 cents.

Wedbush Morgan Securities analyst Joan Storms said Wednesday's actions were necessary because of the downright dismal retail environment that prevented the chain from benefiting from many of the steps it's taken to reverse falling sales..."

Was that a Dow Theory sell signal?...

2009-02-04T21:50:00.003+11:00

[By Mark Hulbert, MarketWatch, Last update: 11:49 p.m. EST Feb. 2, 2009]
ANNANDALE, Va. (MarketWatch) -- "The stock market's behavior on Monday was particularly discouraging to at least some followers of the Dow Theory. That's because both the Dow Jones Industrial Average ($INDU: 8,078.36, +141.53, +1.8%) and the Dow Jones Transportation Average ($TRAN: 3,024.61, +115.94, +4.0%) broke below their respective Jan. 20 lows. In the case of the Dow Transports, furthermore, Monday's closing represents a new closing low for the bear market that began 18 months ago.

The Dow Theory is the oldest stock-market-timing system in widespread use today. Its author was William Peter Hamilton, who introduced it in a series of editorials in The Wall Street Journal over the first three decades of the past century.

Hamilton argued that it is bullish if both the Dow Industrials and the Dow Transports jointly reach significant new highs. Similarly, the market is likely to continue falling if both Averages jointly reach significant new lows. Potential turning points are signaled when only one of the two Averages reaches a new high or a new low--"non-confirmations" in Dow Theory parlance..."

Electronic Arts, Disney set to report...

2009-02-04T08:07:00.003+11:00

[By Carla Mozee, MarketWatch, Last update: 3:49 p.m. EST Feb. 3, 2009]
LOS ANGELES (MarketWatch) -- "Investors are likely to put shares of Electronic Arts Inc. and Walt Disney Co. in play Tuesday evening after the video-game publisher and the media giant release their results, with earnings of both companies expected to decline from the year-ago period.

Electronic Arts (ERTS: 15.48, +0.62, +4.2%) is forecast to report a 2% decline in fiscal third-quarter earnings to 88 cents a share. Sales, meanwhile, are expected to rise 9% to $1.9 billion, according to analysts surveyed by Thomson Reuters. Its shares were up 4.4% to $15.52 ahead of results.

Walt Disney (DIS: 20.59, +0.39, +1.9%) is expected to report a 23% decline in first-quarter earnings to 51 cents a share on a 4% pullback in revenue to $10 billion, according to a FactSet Research poll of analysts. Shares of Disney advanced 2.1% to $20.61..."

Pending home sales post increase of 6.3 pct...

2009-02-04T07:54:00.002+11:00

[Alan Zibel, AP Real Estate Writer, Tuesday February 3, 2009, 1:45 pm EST]
WASHINGTON (AP) -- "An index that tracks signed contracts to purchase existing homes rebounded in December, as buyers snapped up properties at deep discounts, especially in the South and Midwest.

"Buyers are dipping their toes back into the housing market, but they have yet to really take the plunge," wrote Joel Naroff, chief economist with Naroff Economic Advisors.

The National Association of Realtors said Tuesday its seasonally adjusted index of pending sales for previously owned homes for December rose 6.3 percent to 87.7 from an upwardly revised November reading of 82.5, which was lowest month on record. That's better than the 82.3 reading economists expected, according to a survey by Thomson Reuters.

The reading also was up 2.1 percent from December 2007..."

Incitec shares plunge 30 per cent...

2009-02-03T17:57:00.003+11:00

[Tuesday February 3, 2009, 4:24 pm]
(au.biz.yahoo.com) -- "Shares in Incitec Pivot Ltd plunged more than 30 per cent after the fertiliser and explosives supplier said the global economic downturn may cut earnings in fiscal 2009 by about one third.

Incitec's guidance on Tuesday for 2009 earnings was about 33 per cent down on consensus forecasts. The company also said it had slowed the construction of a new $935 million ammonium nitrate plant at Moranbah in central Queensland, forcing contractor United Group also to downgrade its earnings guidance.

In the wake of the profit warning, shares in Incitec plunged to close down 78 cents, or 30.47 per cent, at $1.78..."

Banks boosts shares...

2009-02-03T14:16:00.004+11:00

[Chris Zappone, February 3, 2009 - 12:16PM]
(theage.com) -- "Shares are higher after the big banks, led by the Commonwealth, all posted solid gains.

In noon trade, the benchmark S&P/ASX200 index was up 2.2%%, or 76.7 points, at 3574.1, while the All Ordinaries index was up 2%, or 68.6 points, at 3512.1. The Commonwealth Bank was up $2.52, or 9.5%, at $28.97 after it said it expected a $2 billion interim cash profit - about 20% more than analysts had predicted.

The Australian dollar was down 0.3% against the US dollar, recently trading at 63.23 US cents..."

Mattel's fourth-quarter profit falls 46%...

2009-02-03T07:33:00.003+11:00

[By Matt Andrejczak, MarketWatch, Last update: 12:29 p.m. EST Feb. 2, 2009]
SAN FRANCISCO (MarketWatch) -- "Mattel Inc. reported Monday that fourth-quarter profit fell 46% from last year, sending its shares down 15%, showing that the usually economic-resilient toy industry also was a victim of weak consumer spending during the holidays.

Results from the world's largest toy maker were far worse than expected. To weather the current storm, Mattel (MAT: 11.86, -2.33, -16.4%) plans to shrink its toy lines, cut more jobs and other overhead costs. The toy maker cut 1,000 jobs, or 8% of its global workforce, in November.

While the toy industry has sidestepped other economic downturns, 2008 was tough on all consumer product makers. Analysts are forecasting U.S. toy industry sales fell 5% to 6% from 2007. A final figure is expected to be released at Toy Fair in mid-February..."

'Significant' Risk of Protectionism: Globalization Backlash as Markets Crumble...

2009-02-03T07:11:00.008+11:00

[Posted Feb 02, 2009 12:48pm EST by Aaron Task]
Related: ^dji, ^gspc, SPY, DIA, XLF, EEM, FXI
(YHOO) -- "The failure of Wall Street to police itself has put capitalism on trial and prompted a "huge shift" in the debate over globalization, says Leo Tilman, president of strategic advisory firm L.M. Tilman & Co. and author of Financial Darwinism.

Indeed, although the debate over immigration seems to have died down in the U.S, a backlash against globalization is growing; notable examples include:

The anti-U.S., anti-capitalism rhetoric of the Davos summit, most notably from Chinese Premier Wen Jiabao.
Protectionist measures being discussed as part of the U.S. stimulus bill.
Protests in the U.K. against legal immigrants and Spain's "voluntary return plan," whereby legal immigrants are paid to return to their home countries.

"Defenders of free markets find ourselves in the unusual position where we have to accept and acknowledge that unconstrained capitalism is actually destructive," he says. "How do we balance need for economic dynamism with a viable economy and proper regulation?"..."

'Bad bank' is best hope for beaten stock market...

2009-02-01T09:12:00.004+11:00

[By Laura Mandaro, MarketWatch, Last update: 12:01 a.m. EST Jan. 31, 2009]
SAN FRANCISCO (MarketWatch) -- "Progress creating a government structure to absorb banks' rotten assets could provide some relief next week for the stock market, which otherwise faces a tough lineup of woeful corporate outlooks, plunging auto sales and big job losses. Investors are hoping for more clarity from Congress and the White House on establishing a good bank/bad bank institution that would buy up the delinquent loans and illiquid securities corroding banks' books.

Traders will also be cued to policymakers' decision on how to spend the second half of last fall's $700 billion Troubled Asset Relief Program, or TARP.

The market could use the good news. The S&P 500 ($SPX: 825.88, -19.26, -2.3%) and Dow Jones Industrial Average have lost about 9% this year, adding to last year's double-digit losses..."

Don't write off 2009 just yet...

2009-01-31T11:20:00.005+11:00

[By MarketWatch, Last update: 4:16 p.m. EST Jan. 30, 2009]
ANNANDALE, Va. (MarketWatch) -- "On the surface, at least, it certainly looks bad for the stock market for the rest of 2009. That's because January was a big down month for the stock market -- the Dow Jones Industrial Average ($INDU: 8,000.86, -148.15, -1.8%) , for example, has fallen 8.8% just since New Year's -- and January's direction is considered to be a reliable guide to the stock market's direction for the rest of the year.

But a close analysis of the historical record suggests that not all hope is lost.

Consider first the proportion of years with down Januarys that nevertheless saw the stock market gain between Feb. 1 and the end of the year. Believe it or not, since 1896, when the Dow was created, the proportion has been 50-50. So, even though this January has been a downer, it's still a coin flip whether the stock market will decline over the rest of the year..."

Where the Financial Gurus Are Putting Their Own Money...

2009-01-31T11:17:00.003+11:00

[by Eleanor LaiseThursday, January 29, 2009]
(YHOO) -- "In times of market strife, financial gurus often tell investors to think long-term and stay the course. Some of them even put their own money where their mouth is.

A sampling of high-profile industry veterans, academics and brokerage-firm chiefs reveals that many are hanging on to holdings battered by last year's market slide and busily hunting down new opportunities, particularly among bonds and beaten-down value stocks. Some are snapping up municipal bonds, inflation-indexed securities and steady-Eddie dividend-paying stocks.

And they're generally upbeat about the prospects for long-term retirement savers. "I think this is a marvelous time to be investing," says Rob Arnott, the 54-year-old chairman of Research Affiliates LLC, an investment-management firm in Newport Beach, Calif. "There are more interesting opportunities out there now than any of today's investors have ever seen."..."

Equities down again as economy rears its ugly head...

2009-01-30T06:59:00.005+11:00

[By Kate Gibson, MarketWatch, Last update: 12:30 p.m. EST Jan. 29, 2009]
NEW YORK (MarketWatch) -- "The latest economic data and corporate layoffs -- including job cuts at Starbucks Corp. -- has economist hiking forecasts for next Friday's unemployment count, and are the latest factors dragging down stocks.

The Labor Department reported continuing jobless claims rose by 159,000 last week to a seasonally adjusted 4.78 million, the most since the government began keeping track in 1967.

The data, along with disappointing corporate results, hit equities hard on Thursday, with the Dow Jones Industrial Average ($INDU: 8,375.45, -200.72, -2.5%) down 142.25 points, or 1.7%, at 8,233.2. After a four-session streak of gains, the S&P 500 ($SPX: 849.75, -24.34, -2.8%) was off 19 points, or 2.2%, at 855.09. The Nasdaq Composite (COMP: 1,514.74, -43.60, -2.8%) fell 33.89 points, or 2.2%, to 1,524.45..."

Qualcomm's 1Q profit plunges 56 percent...

2009-01-29T17:52:00.003+11:00

[Thursday January 29, 12:31 am ET By Elliot Spagat, AP Business Writer]
SAN DIEGO (AP) -- "Chip maker Qualcomm Inc. slashed its forecasts for revenue and operating income Wednesday as it reported its fiscal first-quarter income plunged 56 percent.

The San Diego-based company lowered its estimate for 2009 operating income to a range between $2.2 billion and $2.5 billion, from a range between $2.6 billion and $2.8 billion.
It now expects 2009 revenue between $9.3 billion and $9.8 billion, down from its previous estimate of between $10.2 billion and $10.8 billion, and below an estimate of $10.23 billion among analysts polled by Thomson Reuters.

The results were released after markets closed. During regular trading, its shares rose $1.19 to $36.82. They were down $2, or 5.4 percent, to $34.82 after hours..."

Heroes and Zeroes...

2009-01-28T22:02:00.009+11:00

[by John Lanchester, newyorker.com, February 2, 2009]
Liaquat Ahamed’s new book, “Lords of Finance” (Penguin; $32.95) - "Would a book about the men in charge of today’s global financial system be called “The Committee to Save the World”? Or “The Bankers Who Broke the World”? <http://www.amazon.com/Lords-Finance-Bankers-Broke-World/dp/159420182X> The present calamity will probably be the subject of debate for as long as the crash and the Depression have been, and will provide equally rich material.

Consider Ben Bernanke and Henry Paulson: the slouchy Jewish academic who, thank God, made a special study of the causes of the Great Depression; and the aerobicized Christian Scientist former head of Goldman Sachs. The scenario resembles a movie pitch: Danny DeVito and Arnold Schwarzenegger—and they’re twins! As for Calvin Coolidge, the President who, in Ahamed’s words, “elevated inaction to a point of principle”: not hard to think of a latter-day parallel for him. And then there’s the cast of differingly motivated, ideologically disparate foreigners, each trying to build his or her own national life raft: Gordon Brown, Angela Merkel, Nicolas Sarkozy.

Perhaps most fascinating of all is the man who was at the center of that Committee to Save the World and who got most of the credit for the boom before it turned into a bust: Alan Greenspan..."

Staying in the Game...

2009-01-28T21:43:00.002+11:00

[By Whitney Tilson, Contributing EditorJohn Heins, Contributing Editor]
(kiplinger.com) -- "Oaktree Capital Management chairman Howard Marks has described as the three stages of a bear market. In the first stage, just a few prudent investors recognize that the still-prevailing bullishness is likely to be unfounded, he says. In the second stage, the market drifts down in an orderly fashion. By the third stage, everyone is convinced things can only get worse, volatility increases sharply, and the collective herd exits.

The bottom?

Marks has pegged October -- during which the broad-based Russell 3000 index tumbled 18% -- as the point at which the current bear market entered its third phase. As he said at the time: "That doesn't mean [the market] can't decline further, or that a bull market's about to start. But it does mean the negatives are on the table, optimism is thoroughly lacking, and the greater long-term risk probably lies in not investing."..."

Novartis profit up 70% on cost cutting...

2009-01-28T21:31:00.003+11:00

[By Robert Daniel, MarketWatch, Last update: 4:43 a.m. EST Jan. 28, 2009]
TEL AVIV (MarketWatch) -- "Novartis, the Basel health care giant, reported a fourth-quarter profit rise of 70% on just 1.5% sales growth, but analysts fretted the cost-cutting that allowed its profit to grow wasn't coming quickly enough. Novartis (NVS: 45.25, -0.88, -1.9%) said its profit rose 70% to $1.54 billion, or 67 cents a share, with sales rising to $10.08 billion from $9.93 billion.

Other analysts pointed to increased product liability provisions for the earnings miss. Another negative was that the company also pushed back by two years the filing date for the Menveo meningitis vaccine for infants.

Novartis shares dropped 3.5% in a rising Europe market..."

UK banks catch fire to help lift London stocks...

2009-01-28T21:21:00.004+11:00

[By Steve Goldstein, MarketWatch, Last update: 4:47 a.m. EST Jan. 28, 2009]
LONDON (MarketWatch) -- "The hard-hit banking sector caught fire in London trade on Wednesday, with some traders returning to lenders on the belief the U.K. government won't fully nationalize them.

Lloyds Banking Group (LYG: 3.82, +0.42, +12.4%) , already 43% held by the U.K. taxpayer, was the biggest beneficiary, surging 31%. Barclays (BCS: 5.21, +0.11, +2.2%) added 8%. The Royal Bank of Scotland (RBS: 4.42, +0.38, +9.4%) , which is 70% in the hands of the U.K. government, added 1 pence to 17 pence.

More broadly, the U.K. FTSE 100 (UK:UKX: news , chart , profile ) rose 1.3%, or 52.9 points, to 4,247.30. Gainers outnumbered fallers by a 2-to-1 margin..."

Woolworths manages 8.8% sales boost for July-January...

2009-01-28T15:35:00.004+11:00

[By Cynthia Koons, Last update: 8:54 p.m. EST Jan. 27, 2009]
SYDNEY (MarketWatch) -- "Woolworths Ltd. (WOW.AU) said Wednesday first-half sales were A$26.1 billion, up 8.8% on the year. For the 27 weeks ended Jan. 4, Woolworths said Australian food and liquor sales rose 9.0% to A$16.9 billion while its overall supermarket sales rose 8.7% to A$22.1 billion and Big W sales grew 10% to A$2.4 billion on the year.

The company said that while consumer confidence is difficult to predict in the current economic environment, management still expects sales from continuing operations to grow in the upper single digits for the full year..."

4 Steps To Picking A Stock...

2009-01-28T15:26:00.005+11:00

[Tina Carleton, Friday January 23, 2009, 6:26 pm EST]
(YHOO) -- "In today's global economy, weeding through vast amounts of information to arrive at an investment conclusion is very difficult. But there are steps you can take to create a screening process to help sift through the large universe of ideas and arrive at a manageable number that merit further investigation. Here, are those steps.

Step 1: The Broadest View...
Step 2: Company Statistics...
Step 3: Constructing the Screen...
Step 4: Narrowing the Output...

While an abundance of information and options can make investing overwhelming, understanding your investment goals and constructing a screen based on those goals will help you select stocks that meet your needs. However, it is important to remember that these screening steps, while narrowing down the list of potential investment candidates, are no replacement for in-depth fundamental analysis..."

Sun Microsystems skids to $209M quarterly loss...

2009-01-28T11:48:00.003+11:00

[Tuesday January 27, 7:44 pm ET By Jordan Robertson, AP Technology Writer]
SAN FRANCISCO (AP) -- "Sun Microsystems Inc. skidded to a loss of $209 million in the latest quarter, dragged down by a big charge for job cuts and falling demand for servers and data-storage machines.

Still, Sun's shares jumped 5 percent in extended trading because sales topped Wall Street's tepid forecast.

The results illustrate the challenge facing Sun, in the throes of major layoffs, as it tries to overhaul its business during a recession that has damaged bigger and sturdier rivals. One of those rivals is IBM Corp., whose mainframe and server sales have suffered as corporations chop their technology budgets. Sun said after the market closed Tuesday that its loss amounted to 28 cents per share in the latest quarter. In the comparable period a year earlier, Sun had a profit of $260 million, 31 cents per share..."

Stocks rise following US Steel, Amex earnings...

2009-01-28T11:22:00.004+11:00

[Tuesday January 27, 6:16 pm ET By Tim Paradis, AP Business Writer]
NEW YORK (AP) -- "Some of Wall Street's earnings anxiety is easing -- at least for the time being. The market had its second straight moderate advance Tuesday, rising after companies including United States Steel Corp. and American Express Co. managed to post profits in a difficult recession.

Profit reports from U.S. Steel and American Express as well as chip-maker Texas Instruments Inc. and movie rental company Netflix Inc. reassured investors that while the fourth quarter was generally terrible for companies, it wasn't the disaster many had feared -- some companies are still able to make money despite the worst recession in decades..."

Yahoo suffers 4Q loss, but tops analyst views...

2009-01-28T10:25:00.002+11:00

[Tuesday January 27, 5:21 pm ET By Michael Liedtke, AP Technology Writer]
SAN FRANCISCO (AP) -- "Yahoo Inc. stumbled to a fourth-quarter loss of $303 million, but the Internet company withstood the recession better than analysts had expected. The results that were released Tuesday closed the books on Yahoo co-founder Jerry Yang's fruitless 18-month stint as CEO. The Sunnyvale, Calif.-based company hired a new leader, Carol Bartz, two weeks ago in its latest attempt to orchestrate a turnaround.

Yahoo's loss translated into 22 cents per share. It compared with a profit of 15 cents per share in the prior year, when Yahoo earned $206 million. The fourth-quarter setback wasn't as bad as it appeared because the loss stemmed from charges to cover Yahoo's costs for laying off 1,500 employees last month and to account for bad investments.

Investors seemed relieved as Yahoo shares gained 41 cents, or 3.6 percent, in extended trading, after finishing the regular session at $11.34, up 17 cents..."

Is Skype Finally for Sale?...

2009-01-28T09:58:00.003+11:00

[Posted Jan 27, 2009 10:43am EST by Sarah Lacy]
Related: ebay, yhoo, ^ixic
(YHOO) -- "Reports are surfacing that eBay may be quietly putting Skype on the for-sale or for-spin-off block. This is something analysts have hoped for for a long time, but has eBay missed the window by stubbornly insisting Skype was a fit with its core business?..."

Target to cut jobs at Minn. headquarters...

2009-01-28T08:27:00.004+11:00

[By MAE ANDERSON, The Associated Press January 27, 2009, 2:56PM ET]
(NEW YORK) - "Discount retailer Target Corp. said Tuesday it is cutting an undisclosed number of staffers in its headquarters among other spending cuts. The cuts are part of an effort to "manage payroll and non-payroll expense in the current economic environment," Target said in a statement. Like most retailers, the Minneapolis-based company has suffered as consumers limit spending and shop mainly for necessities.

Retail consultant Burt Flickinger III said the move was not entirely unexpected because Target's same-store sales have been "uncharacteristically soft." "Retailers tend to be the biggest hirers when the economy is good, and when the economy is contracting retailers tend to lay off the highest number of people," he said. "As we're expecting consumer spending overall to decline 3 to 4 percent during the calendar year, retailers will have to continue to cut back both at corporate offices and the store level."

Target shares fell 40 cents to $32.75 during afternoon trading..."

A banking dream team...

2009-01-28T08:25:00.002+11:00

[By David Weidner, MarketWatch, Last update: 10:37 a.m. EST Jan. 27, 2009]
NEW YORK (MarketWatch) -- "If you believe our leaders, we can't find anyone to reform the financial system other than tax evaders and undistinguished and overpaid career regulators.
When Robert Rubin explains away the financial crisis by saying "nobody was prepared for this" we have to just shrug and accept it.

How else could we end up getting such yawn-inducing candidates as Tim Geithner, who was confirmed as Treasury Secretary late Monday, Mary Schapiro for the Securities and Exchange Commission, Dick Parsons as chairman of Citigroup Inc. (C: 3.55, +0.22, +6.6%) and Neel Kashkari holding the keys to the bailout vault?

Neither the old or new administration has inspired much confidence with its picks for top jobs. They are flawed candidates, each with a history that requires the public to grit its teeth, hold its nose and hope for the best..."

The Case for Derivatives...

2009-01-27T14:19:00.008+11:00

[By Zachary Karabell, Published Jan 24, 2009]
(newsweek.com) -- "They've been dubbed financial weapons of mass destruction, attacked for causing the financial turmoil sweeping the nation and identified as the kryptonite that brought down the global economy.

And then there's . The Yale economist and financial soothsayer believes just the opposite is true. A champion of financial innovation and an expert in management of risk, Shiller contends that derivatives, far from being a problem, are actually the solution. We need more of them, not less, he says, and warns about the dangers of misguided regulation (though he agrees some regulation is vital). Derivatives, Shiller says, are merely a risk-management tool the same way insurance is. "You pay a premium and if an event happens, you get a payment." That tool can be used well or, as happened recently, used badly. Shiller warns that banishing the tool gets us nowhere. Instead, he envisions a world where derivatives become as common as cash..."

Steve Benson by Steve Benson...

2009-01-27T13:45:00.003+11:00

(gocomics.com) -- "Winner of the Pulitzer Prize for editorial cartooning in 1993, Steve Benson has been a lightning rod for more than 20 years as the staff editorial cartoonist for The Arizona Republic. Benson sums up his career best: "I don’t aim to please. I just aim."..."

500,000 Blackberry Storms Sold in First Month? Not Bad (RIMM)...

2009-01-27T13:34:00.002+11:00

[Posted Jan 26, 2009 04:52pm EST by Dan Frommer]
Related: RIMM, AAPL, T, ^ixic
(From Silicon Alley Insider) -- "How's RIM's (RIMM) iPhone rival, the BlackBerry Storm, doing? Not terrible, it seems. While it's not going to win any design awards, it seems to be just good enough to get many Verizon subscribers to buy it instead of jumping ship to AT&T (T), the iPhone's exclusive carrier.

Verizon sold "roughly" 500,000 Storms in its first month of sales after its Nov. 21 launch, according to the WSJ, citing "people familiar with the matter."..."

American Express earnings fall 79 percent...

2009-01-27T12:48:00.003+11:00

[Monday January 26, 7:29 pm ET By Sara Lepro, AP Business Writer]
NEW YORK (AP) -- "American Express Co. said Monday that its profit tumbled 79 percent in the fourth quarter as cardmembers cut back their spending amid the harsh economy and the company took a big severance-related charge.

This marks the fifth-straight quarter of profit declines at American Express -- a credit card company that has prided itself on catering to a more affluent clientele -- proving that few have been spared from the pain of the recession..."