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Wall Street Rumors - April 9, 2009

Milla — Thu, 09 Apr 2009 17:01:33 +0000

Daily rumors covering the global markets. Subscribe to the update feed here.

Wells Fargo Projects Record Profit

Wells Fargo & Co. (NYSE:WFC) projected first-quarter net income well above analysts’ expectations, becoming the latest banking giant to express positive sentiments of the period following a 2008 that saw mountains of losses for the industry.

Barclays to Sell IShares to CVC for $4.4 Billion

Barclays Plc (NYSE:BCS), the U.K.’s third- largest bank, agreed to sell its iShares unit to CVC Capital Partners Ltd. for $4.4 billion to boost capital. London-based Barclays will retain a 20 percent stake in iSharees, the biggest manager of exchange-traded funds, and will finance $3.1 billion of the purchase price, the company said in a statement today.

Emerging-Market Stocks Extend Biggest Rally in Year; Bonds Gain

Emerging-market stocks rose and headed for their longest stretch of weekly gains in a year as energy companies climbed on higher oil prices and speculation mounted government aid will revive economic growth. The gauge rose 2.2 percent this week and was poised for the highest close in almost six months.

Crude Oil Rises as Equity Gains Signal Demand May Climb

Crude oil rose as European and U.S. equities gained, signaling that some investors expect economies to stabilize, boosting demand for energy. Oil rose as much as 6 percent after stocks increased on better-than-estimated earnings at Wells Fargo & Co. (NYSE:WFC) and speculation banks will pass government stress tests.

Toyota to Overhaul U.S. Operations

Toyota Motor Corp. (NYSE:TM) is expected to announce as early as Friday in Japan a major overhaul of its U.S. operations, bringing engineering, manufacturing and sales under a single executive to revamp the ailing business. People familiar with the matter has been formally asked by Toyota this week to oversee most of the key aspects of the U.S. business.

Chrysler and Its Bankers in a Standoff

Chrysler, the U.S. Treasury Dept., and banks are in a standoff befitting one of Clint Eastwood’s spaghetti westerns. Last week, Chrysler’s lenders rebuffed an offer from the Treasury to take $6 billion of the $7 billion Chrysler owes the banks in stock and the remaining $1 billion in new secured debt, according to people familiar with the situation.

Best Buy seeks to steal share in mobile market

At a time when most retailers are paring back on store openings and lowering capital spending, Shawn Score said he felt good about the leases he just signed for two stand-alone Best Buy (NYSE:BBY) Mobile locations. With such expansion and other efforts, the unit of No. 1 U.S. electronics chain that sells cell phones and other accessories is aiming high: increasing the company’s share of the 160 million handset market in the United States to 10% in under five years from about 3.5% to 4% today.

Wal-Mart Sales Are Short of Retail Metrics Estimate

Wal-Mart Stores Inc. (NYSE:WMT), the world’s largest retailer, reported comparable-store sales in March that rose less than some analysts estimated, pushing the shares down the most in two months in New York trading. Revenue from U.S. stores open at least a year advanced 1.4 percent in the five weeks ended April 3.

Apple Faces Suit Over Patents

Taiwan chip designer Elan Microelectronics Corp. (TPE:2458) said it has filed a suit against Apple Inc. (NASDAQ:AAPL) in a U.S. court, alleging the company infringed two patents in the production of its MacBook, iPhone and iPod Touch products. Elan, which makes touch pads for computers, said it owned the rights to touch-screen technology that allowed Apple’s products to detect the position of fingers on a screen or touchpad.

IBM Targets India to Beat Rivals at Their Own Game

International Business Machines Corp. (NYSE:IBM) is expanding in India and grabbing enough customers to take the top spot in the country’s domestic information-technology market from local rivals. While Tata Consultancy Services Ltd. (BOM:532540) and Infosys Technologies Ltd. (NASDAQ:INFY) have won over U.S. companies with cheaper labor and low capital costs, IBM snapped up contracts with some of India’s largest companies, such as wireless carrier Bharti Airtel Ltd.

Textron Rises Most in 28 Years on Report of Emirates Sale

Textron Inc. (NYSE:TXT) rose the most in at least 28 years after Kuwait’s Al-Watan newspaper reported that a United Arab Emirates group is preparing to buy the maker of Cessna aircraft and Bell helicopters for $21 a share. Providence, Rhode Island-based Textron rose $3.71, or 41 percent, to $12.79 at 9:39 a.m. in New York Stock Exchange composite trading after earlier gaining 46 percent in the biggest intraday increase since at least July 28, 1980.

Daily rumors covering the global markets. Subscribe to the update feed here.

Wells Fargo Projects Record Profit

Barclays to Sell IShares to CVC for $4.4 Billion

Emerging-Market Stocks Extend Biggest Rally in Year; Bonds Gain

Crude Oil Rises as Equity Gains Signal Demand May Climb

Toyota to Overhaul U.S. Operations

Chrysler and Its Bankers in a Standoff

Best Buy seeks to steal share in mobile market

Wal-Mart Sales Are Short of Retail Metrics Estimate

Apple Faces Suit Over Patents

IBM Targets India to Beat Rivals at Their Own Game

Textron Rises Most in 28 Years on Report of Emirates Sale

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Wall Street Rumors - April 6, 2009

Milla — Mon, 06 Apr 2009 13:18:01 +0000

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U.S. Stock Futures Retreat on Banking Concern; Sun Tumbles
U.S. Bancorp (NYSE:USB) and SunTrust Banks Inc. (NYSE:STI) slid more than 4.4 percent after Calyon Securities’ Mayo said new government actions to shore up the financial system may not help as much as expected. Sun Microsystems (NASDAQ:JAVA) sank 22 percent as people familiar with the matter said negotiations with IBM (NYSE:IBM) have fallen apart. European equities and crude oil erased gains.

HSBC raises almost $18 billion in rights offering
HSBC Holdings Plc. (NYSE:HBC) said Sunday it raised 12.5 billion pounds ($17.7 billion) in its recent stock rights offering, net of expenses, in a move expected to boost the international banking giant’s capital levels and possibly even fund new acquisitions.

AIG’s CDS Hoard: The Great Unraveling
The white-hot furor over AIG’s (NYSE:AIG) retention bonuses seems to have died down a bit. Last week the House of Representatives passed a watered-down version of the bill that was supposed to tax those payments out of existence. But AIG isn’t leaving the bull’s-eye anytime soon. The Government Accountability Office said on Mar. 31 that AIG should demand concessions from its trading partners and employees.

Citi Appoints Mike Corbat CEO of Citi Holdings
Citigroup Inc. (NYSE:C) named Mike Corbat the permanent chief executive of Citi Holdings, one of the two divisions the struggling banking giant has split its operations into as it looks to make a turnaround. Citigroup’s shares were recently down 1.4% at $2.81. The stock has more than doubled in the last month but has still lost 58% of its value so far this year.

IBM Talks Teeter as Sun Board Splits
Talks between International Business Machines Corp. (NYSE:IBM) and Sun Microsystems Inc. (NASDAQ:JAVA) were on the verge of unraveling Sunday, threatening a potential $7 billion acquisition that would place one of Silicon Valley’s iconic companies under the Big Blue umbrella.

Aerospace Industry Faces Pressure Over Transparency
Northrop Grumman Corp.’s (NYSE:NOC) $325-million settlement last week resolving claims over defective satellite parts has ratcheted up pressure on the U.S. aerospace industry to become more transparent about performance on government space contracts. The long-running Northrop case previously prompted the Air Force and Aerospace Corp., its main outside adviser on space projects, to revamp nondisclosure rules covering certain proprietary data gathered from contractors, according to people familiar with the details.

Gold Drops to 10-Week Low in London as Haven Demand Declines
Gold dropped to a 10-week low in London on speculation the world financial crisis may be easing, reducing the precious metal’s appeal as a haven. Silver fell. Bullion has tumbled 5 percent in three days, wiping out this year’s gains, on expectations government efforts will revive the global economy.

A Boom for Tax Prep
New tax breaks will drive fresh customers to H&R Block (NYSE:HRB), Liberty Tax, and others. But the IRS fears increased fraud in the unregulated industry. The good news for tax preparers could turn into bad news for the IRS, however, as well as an early illustration of what might be many unintended consequences stemming from the stimulus.

AT&T workers to stay on job after contract expires
AT&T Inc.’s (NYSE:T) landline employees will continue to report for work after their contract expired at midnight Saturday, according to a statement Sunday by the union that represents nearly 100,000 of the company’s workers. “For now, employees will continue to report to work, although that can change at any time. Workers are keeping their option to strike open,” the Communications Workers of America said.

MGM Mirage Weighs Sale of Detroit, Gulf Casinos
MGM Mirage (NYSE:MGM) has hired Morgan Stanley (NYSE:MS) to handle the potential sales of two of its steadiest cash cows, MGM Grand Detroit and the Beau Rivage casino in Biloxi, Miss., according to people with knowledge of the matter. MGM Mirage, based in Las Vegas, is under intense pressure to raise cash to meet looming obligations on its $13.5 billion in debt as well as salvage City Center, the troubled $8.6 billion Las Vegas development owned by MGM Mirage and Dubai World that still needs billions in funding.

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Wall Street Rumors - April 3, 2009

Milla — Fri, 03 Apr 2009 14:24:37 +0000

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Fannie, Freddie Set to Pay $210 Million in Retention Bonuses
In a compensation program that has drawn angry protests from politicians, Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) expect to pay about $210 million in retention bonuses to 7,600 employees over 18 months, according to a letter from the mortgage companies’ regulator to Sen. Charles Grassley.

U.S. Stocks Fluctuate After Unemployment Hits 25-Year High
U.S. stocks drifted between gains and losses after the unemployment rate climbed to a 25-year high of 8.5 percent, matching economists’ estimates. Oil retreated and the dollar gained. Alcoa Inc. (NYSE:AA) and Microsoft Corp. (NASDAQ:MSFT) fell at least 1.6 percent as the government said employers cut 663,000 jobs last month, 3,000 more than the average estimate in a Bloomberg survey of economists. Citigroup Inc. (NYSE:C) and JPMorgan Chase & Co. (NYSE:JPM) slipped more than 1 percent after Goldman Sachs Group Inc. (NYSE:GS) said changes to fair-value accounting rules won’t spur a rally in financials.

Oil Prices Weaken on Jobless Data
Crude-oil futures were lower, hovering near $52 a barrel on Friday, after the U.S. Labor Department reported the March unemployment rate was the highest in 25 years. The jobless rate hit 8.5%, up from 8.1% in February, but in line with expectations. New unemployment claims rose by 663,000, less than the consensus forecast of 673,000.

GE’s Jeffrey Immelt: All Boxed In
On the day before President Barack Obama’s inauguration, Jeffrey R. Immelt tried to give General Electric (NYSE:GE) investors his own brand of hope. With the world going through a fundamental reset, the GE chairman and CEO told MSNBC viewers: “We’ve got to come out of this a brand-new company.”

M’bishi doubles output plans for electric car
Mitsubishi Motors Corp. (TYO:7211) is planning to double production capacity for the i MiEV electric vehicle to 20,000 units a year by 2011, according to a published report. The Japanese business daily Nikkei reported Mitsubishi had originally planned to produce 2,000 plug-in electric cars in fiscal 2009, raising production to 10,000 in 2011. Some 2,000 units already have been pre-ordered by corporate clients for the current fiscal year, according to the report.

Northrop Agrees to Pay $325 Million to Settle Suit
Northrop Grumman Corp. (NYSE:NOC) agreed Thursday to pay the U.S. government $325 million to settle civil claims that a company it acquired allegedly made defective parts for spy satellites that resulted in serious malfunctions and expensive fixes several years ago. The suit alleges that officials at TRW Inc., which Northrop acquired in 2002, previously worked with Aerospace Corp. to cover up problems with certain widely used microelectronic parts.

RIM Jumps After Profit, Sales Forecasts Top Estimates
Research In Motion Ltd. (NASDAQ:RIMM), the maker of the BlackBerry phone, surged the most in more than five years in Nasdaq trading after first-quarter profit and sales forecasts exceeded analysts’ projections. RIM said yesterday that earnings will amount to at least 88 cents a share, compared with the 82-cent average of estimates.

IBM Near Deal to Buy Sun for Lower Price
International Business Machines Corp. (NYSE:IBM) and Sun Microsystems Corp. (NASDAQ:JAVA) are in the final stages of negotiations to combine the two corporate computer giants. The companies are now discussing a deal in which IBM would pay $9.55 a share for Sun, about $1-a-share lower than Sun previously expected, according to people familiar with the talks.

Dell, Ingersoll-Rand Pay Up as Recession Lifts Borrowing Costs
Dell Inc. (NASDAQ:DELL), the world’s second- largest personal-computer maker, and refrigeration-equipment producer Ingersoll-Rand Co. (NYSE:IR) borrowed at higher rates this week than in offerings last year, amid investor concern that the recession will squeeze their cash reserves. Dell sold $500 million of debt due 2014 at almost a percentage point more in interest costs than in its last offering in April 2008.

Coke to correct ‘misleading’ campaign in Australia
Coca-Cola Co. (NYSE:KO) is to publish advertisements in Australia newspapers to “correct” an earlier campaign that claimed its products did not contribute to tooth decay or obesity. The corrections will also amend the company’s earlier message that its products are not over-caffeinated. The trouble began last October with a series of newspaper ads featuring Australian actress Kerry Armstrong that attacked “myths” about the risks of drinking Coca-Cola.

Cable TV: Pushing to Become More Web-like
So Comcast (NASDAQ:CMCSA), Time Warner Cable (NYSE:TWC), and their ilk are going on the offensive. Long technology laggards, the cable companies have set up skunk works. The aim of doing so is twofold: putting more of their content online and making the regular television viewing experience more Weblike. “We don’t want to be alarmists,” says Time Warner Cable CEO Glenn Britt. “But we really need to look at what consumers want.”

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Wall Street Rumors - April 2, 2009

Milla — Thu, 02 Apr 2009 15:30:02 +0000

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G-20 Faces Regulation Debate
The Group of 20 nations will take steps toward curtailing bank secrecy and imposing greater regulation of hedge funds, G-20 officials said Thursday. But key disagreements remain on questions of tougher regulation of financial markets, and many details in all areas will be deferred to the future.

U.S. Stocks Gain, Extend Global Rally; Treasuries, Dollar Fall
U.S. stocks rallied, extending a global advance, as accounting regulators approved a rule change that may boost bank profits and world leaders neared agreement on measures to fight the recession. Oil rose the most in three weeks, while the dollar and Treasuries fell. Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE:WFC) gained at least 7 percent as the Financial Accounting Standards Board voted to relax so-called fair-value rules.

Oil Prices Climb Above $50 a Barrel as Stock Markets Rally
Crude-oil futures bounced back above the psychologically significant $50-a-barrel mark Thursday on buying fueled by a weaker dollar and strong world stock markets. Light, sweet crude for May delivery was recently up $3.32, or 6.9%, at $51.71 a barrel on the New York Mercantile Exchange, rising above $50 for the first time since Monday. In early trading it reached $52.36 a barrel.

FASB poised to move to more mark-to-market flexibility
Responding to pressure applied by lawmakers on Capitol Hill, the Financial Accounting Standards Board on Thursday agreed with agency staff proposals to give auditors more flexibility in valuing illiquid mortgage assets that may have long-term value. Banks complain they can’t sell certain assets because of a lack of a market, but that the assets are not distressed and have strong cash flow.

Now, Obama ‘Owns’ General Motors
In firing the CEO of General Motors (NYSE:GM) this week and suggesting bankruptcy may be the best course for that company and Chrysler, President Barack Obama demonstrated forcefully that the Administration will go only so far to rescue even the country’s most important icons. But the move, which experts are comparing with a variety of similarly dramatic decisions by his predecessors, is fraught with political risk—and risk for his economic program generally.

European Central Bank cuts key rate to new low
The European Central Bank, confronting a recession and barely a flicker of inflation, on Thursday reduced its key interest rate to 1.25%, a fresh record low but a smaller-than-expected cut that stunned markets. Most economists had expected a half-point cut to 1%. ECB President Jean-Claude Trichet said the decision was taken by “consensus” — meaning that not all the governing council members supported the move. He added that the key refi rate may go lower than 1.25%.

Mortgage Rates in U.S. Decline to Record Low of 4.78%
Fixed mortgage rates in the U.S. fell to a record low for the second consecutive week, signaling that Federal Reserve Chairman Ben Bernanke’s effort to spur the housing market is gaining traction. The 30-year rate dropped to 4.78 percent from 4.85 percent a week earlier, Freddie Mac said today in a statement. The rate is the lowest in Freddie Mac’s records dating to 1971.

RIM Launches BlackBerry App Store
Research In Motion Ltd. (NASDAQ:RIMM) opened its online store for BlackBerry applications as it looks to tap a market for cellphone software made popular by Apple Inc. (NASDAQ:AAPL) and the iPhone. RIM is getting into an area increasingly crowded with high-profile companies, including Microsoft Corp. (NASDAQ:MSFT) and Nokia Corp. (NYSE:NOK) It is part of a larger push by the Canadian company to appeal to more consumers.

Are Smartphones on Cisco’s Wish List?
On Mar. 31, Cisco (NASDAQ:CSCO) was awarded a patent for managing time delays in relaying video wirelessly to consumer electronics devices. The same day, it received a patent for a network-connected phone able to stream video. Many of Cisco’s recently filed patents mention a personal digital assistant as a device that could potentially use the innovations described.

Airbus Says Deliveries May Fall 15% Next Year, Touching Bottom
Airbus SAS, the world’s biggest planemaker, anticipates that deliveries may drop as much as 15 percent next year in a worst-case scenario before picking up again in 2011, the company’s chief salesman told analysts. A target of 483 deliveries this year should still be achieved, John Leahy, who is also chief operating officer, said today in a presentation to analysts, according to two people present at the briefing in Broughton, north Wales.

Qwest seeking sale of long-haul network: WSJ
Qwest Communications International Inc. (NYSE:Q) is considering a sale of its long-haul voice and data network, according to a media report Wednesday. The online edition of The Wall Street Journal, citing unnamed sources, reported that Qwest is in the early stages of seeking a buyer for the network, which could fetch roughly $2 billion to $3 billion.

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Wall Street Rumors - April 1, 2009

Milla — Wed, 01 Apr 2009 13:36:15 +0000

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New GM Chief Bends to U.S. Pressure
Facing heavy government pressure, General Motors Corp.’s (NYSE:GM) chief executive spent his second day on the job making a public break from his predecessor, sending a sharply different message of willingness to shake up the ailing auto maker.

Obama Said to Find Bankruptcy Likely for GM, Chrysler
President Barack Obama believes a quick, negotiated bankruptcy is the most likely way for General Motors Corp. (NYSE:GM) to restructure and become a competitive automaker, people familiar with the matter said. Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can’t form an alliance with Fiat SpA.

Ford May Flip to Laggard From Leader If GM Improves
Ford Motor Co. (NYSE:F), the only U.S. automaker not taking federal aid, could lose its competitive edge if President Barack Obama is successful in slimming down General Motors Corp. (NYSE:GM) with lower labor costs, debt and dealers. Obama gave GM 60 days to devise a new strategy to cut costs with its union, slash debt with bondholders and reduce dealers and brands.

Toyota, Nissan Lead 32% Plunge in Japan Auto Sales
Toyota Motor Corp. (NYSE:TM) and Nissan Motor Co. (NASDAQ:NSANY) led a 32 percent drop in Japan’s auto sales to the lowest level in 35 years as economic recession exacerbates slumping domestic demand. Vehicle sales, excluding minicars, fell to 323,063 vehicles in March, the Tokyo-based Japan Automobile Dealers Association said in a statement today.

Oil Falls Below $49 a Barrel on Gloomy Data
Oil prices slipped below $49 Wednesday as new signs of deterioration in the world’s three biggest economies — the U.S., Japan and China — undermined crude’s recent gains. Benchmark crude for May delivery was down $1.22 to $48.44 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange.

Fannie, Freddie Are Pressured as Homeowners Fall Behind
The rapid rise in the number of borrowers skipping their mortgage payments is putting renewed pressure on the financial reserves of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). The mortgage-finance companies were taken over by the government in September, making this one more concern that the Obama administration needs to tackle before year’s end when analysts expect the two companies to run out of the government aid already earmarked.

Global Trade Collapse Smacks Industrial Companies
World trade is declining at the fastest rate since the Great Depression, causing many industrial companies to struggle. The world’s shipping lanes are less crowded and barge hulls are emptier. According to World Bank forecasts issued on Mar. 31, the volume of world trade in goods and services will drop 6.1% this year, the biggest decline in 80 years.

MasterCard reaches deal in Europe on fees
MasterCard (NYSE:MA) on Wednesday said it’s reached a tentative deal with the European Commission on fees that it charges merchants as it pursues a legal appeal. According to the European Commission, MasterCard will lower merchant fees on cross-border and certain domestic euro-area transactions. The new fees will be up to 0.3% for consumer credit card transactions and up to 0.2% for consumer debit cards.

HP Is ‘Studying’ Android for PC Use
If Hewlett-Packard (NYSE:HPQ), the world’s biggest PC maker, were to install Google’s (NASDAQ:GOOG) operating system on netbooks, Microsoft (NASDAQ:MSFT) Windows could face strong competition. Move over, Microsoft. Hewlett-Packard may give Google the entrée it needs to provide the go-to operating system for new lines of mass-market notebook computers.

Hitachi executive indicted in price-fixing scheme
Hitachi Displays Ltd. executive Sakae Someya was indicted by federal court in San Francisco on Tuesday for allegedly conspiring to fix prices for display panels sold to U.S. computer maker Dell Inc. (NASDAQ:DELL) The U.S. Justice Department said in a statement that Someya sought with unnamed co-conspirators “to suppress and eliminate competition” by fixing the price of thin film transistor-liquid crystal displays (TFT-LCD) sold to Dell for use in notebook computers.

Wells told employees it may cut foreign workers
Wells Fargo & Co. (NYSE:WFC), one of the largest U.S. lenders, told employees this month that it’s considering cutting foreign workers, citing political pressure stemming from the government’s bailout of the banking industry, according to an internal email obtained by MarketWatch.

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Wall Street Rumors - March 31, 2009

Milla — Tue, 31 Mar 2009 15:28:56 +0000

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Moscow Warns on Low Oil Prices
To many in the West, Russia’s oil wealth is an addiction that has warped its economy. Russian energy czar Igor Sechin considers that envious nonsense. Russia’s resources “are a God-given good that should be used effectively,” he said in his first major interview with a foreign media outlet. “Somebody is always wanting to take them away.”

Home values sink at record pace in January
Home values in 20 major U.S. cities fell at the fastest rate on record in January and are now down a record 19% in the 12 months ending in January, Standard & Poor’s reported Tuesday. The Case-Shiller 20-city home price index fell a record 2.8% in January, with home values in all 20 cities falling at least 1%. Prices in the original 10-city index fell a record 19.4% over the year. Prices fell 2.5% in January in the 10 cities.

Consumer Spending May Drop by $1 Trillion, AlixPartners Says
Annual consumer spending in the U.S. may decline by more than $1 trillion after the recession ends and shoppers adjust their spending habits, according to a survey conducted by AlixPartners LLP. Americans may save 14 percent of their earnings and focus on replenishing retirement savings, according to the survey of 5,031 people released yesterday.

Expanding Eateries Target Shuttered Sites
As restaurant chains go out of business or prune their store counts in the tough economy, competitors are jumping on the opportunity to move into the vacated locations as a way to expand quickly and cheaply. Restaurants can convert their competitors’ closed sites to their own brands at a lower cost than building new restaurants from scratch, industry executives note.

Sinopec Wins Order to Build Oil, Gas Rigs in Kuwait
China Petroleum & Chemical Corp. (NYSE:SNP), the oil company known as Sinopec, won a contract to build five oil and gas rigs in Kuwait, according to the nation’s state crude producer. The tender is part of Kuwait’s plan to boost oil output to 4 million barrels a day by 2020. The Persian Gulf nation, the fifth-largest producer in the Organization of Petroleum Exporting Countries, pumped 2.14 million barrels a day in February.

Sun-Times Media Group Files for Voluntary Bankruptcy
Sun-Times Media Group Inc. (OTC:SUTM) became the second major Chicago newspaper publisher to seek bankruptcy protection as plunging advertising revenue makes debt payments more difficult. The company, the owner of the namesake newspaper, and its principal operating subsidiary, the Sun-Times News Group, will continue to run their newspapers and online sites while they focus on further improving cost structure and stabilizing operations.

Porsche earns $7.3 billion due to VW options
The world’s best trading desk during the latter half of 2008 belonged to Porsche Automobil Holding (FRA:PAH3), as the automaker made a 5.55 billion euro ($7.3 billion) profit over six months in large part by catching out those who bet against Volkswagen (FRA:VOW). Porsche said in the six months to Jan. 31 its profit climbed to 5.55 billion euros from 1.26 billion euros.

Google to Commit $100 Million to Venture Capital Fund in its First Year
Google Inc. (NASDAQ:GOOG) is expected to Tuesday announce more details about its highly anticipated venture-capital fund, including its plan to commit roughly $100 million to the endeavor in its first year, said people familiar with the matter.

YouTube Seals Deal on ABC, ESPN Clips
Google Inc.’s (NASDAQ:GOOG) YouTube, as part of its battle to lure more premium content to its site, signed a deal with Walt Disney Co. (NYSE:DIS) to offer clips from ABC and ESPN across its video-sharing service. The arrangement entails both companies sharing revenue from advertising shown along with short videos, such as sports highlights, show recaps and original Web series.

‘Monsters’ May Help Theaters Upgrade, Katzenberg Says
DreamWorks Animation SKG Inc.’s (NASDAQ:DWA) $59.3 million opening of “Monsters vs. Aliens” may help secure funding by June for a digital upgrade of U.S. movie theaters, Chief Executive Officer Jeffrey Katzenberg said. “Monsters” had the biggest debut this year in the U.S. and Canada last weekend, according to box-office tracker Media By Numbers LLC. A premium for 3-D tickets padded the haul.

JetBlue extends decline as airlines trade flat
After a brief opening burst to the upside, airline stocks returned to neutral ground Tuesday, trading in a narrow range that left the sector nearly unchanged from the previous session’s close. Shares of JetBlue Airways Corp. (NASDAQ:JBLU) decline, however. Among shares of the big U.S. carriers, gainers included Delta Air Lines (NYSE:DAL), up 3.5% to $5.59, and Southwest Airlines (NYSE:LUV), up 1.6% to $6.27.

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Wall Street Rumors - March 30, 2009

Milla — Mon, 30 Mar 2009 13:28:29 +0000

Daily rumors covering the global markets. Subscribe to the update feed here.

U.S. Forces Out GM CEO Wagoner
The Obama administration used the threat of withholding more bailout money to force out General Motors Corp. (NYSE:GM) Chief Executive Rick Wagoner and administer harsh medicine to Chrysler LLC, marking one of the most dramatic government interventions in private industry since the economic crisis began last year.

Mortgage Defaults, Delinquencies Rise
Defaults on home mortgages insured by the Federal Housing Administration in February increased from a year earlier. A spokesman for the FHA said 7.5% of FHA loans were “seriously delinquent” at the end of February, up from 6.2% a year earlier. Seriously delinquent includes loans that are 90 days or more overdue, in the foreclosure process or in bankruptcy.

Gold futures fall for second day as dollar rises
Gold futures fell Monday for a second straight session, as the U.S. dollar strengthened ahead of this week’s meeting of leaders from the Group of 20 nations, reducing gold’s appeal as an investment appeal. Gold for April delivery fell $9.90, or 1.1%, to $913.30 an ounce on the Comex division of the New York Mercantile Exchange.

EBay Wants to Put Skype in Your Pocket
After repeated experiments aimed at getting consumers to use Skype for cell phones, the eBay (NASDAQ:EBAY) unit may have a winner. On Mar. 31, the company will release a version of Skype for Apple’s (NASDAQ:AAPL) iPhone and iPod touch, as was previously speculated in the blog GigaOm.

Oil Falls a Second Day on Speculation Demand Will Remain Weak
Crude oil declined for a second day as tumbling equity markets indicated that economies and demand for fuel may weaken further. Global demand remains slack and oil is unlikely to reach $60 a barrel this year. Crude also dropped as the dollar strengthened to its highest against the euro in more than a week, limiting the appeal of commodities used to hedge against inflation.

Fifth Third to Sell 51% Stake in Its Payment Unit to Advent
Fifth Third Bancorp (NASDAQ:FITB) announced Monday that it has agreed to sell a majority interest in its payment-processing unit to private-equity firm Advent International Corp., a deal that further shores up the bank’s capital base following a $3.45 billion injection from the government.

Barclays Said to Opt Against Insurance After FSA Test
Barclays Plc (NYSE:BCS) won’t seek government asset guarantees after regulators said the U.K.’s third-biggest bank doesn’t need capital and as the lender plans to sell its iShares unit, said a person familiar with the situation. London-based Barclays will inform the Treasury of its decision by tomorrow’s deadline, said the person, who declined to be identified because the discussions are confidential.

Serious Threats to Sirius Radio
Timothy Der, a software engineer who lives in Los Angeles, was a fan of Fungus 53, a punk radio station on XM Satellite Radio. Alas for Der, Fungus 53 went off the air months after the July 2008 merger of XM into satellite radio rival Sirius. So Der canceled his subscription and switched to Internet radio. For Sirius XM Radio (NASDAQ:SIRI), such migrations spell trouble.

BlackBerry’s Consumer Push Is Coming at a Price for RIM
Despite a shrinking cellphone market, sales of BlackBerry devices are soaring. But concerns that a mass-market push is eroding profit margins have jostled the shares of Research In Motion Ltd. (NASDAQ:RIMM), and investors are divided on the BlackBerry maker’s prospects ahead of its earnings report Thursday.

Hyundai Seizes ‘Once-in-Lifetime’ Chance to Grab Toyota’s Sales
In the worst U.S. car market in 28 years, Hyundai Motor Co. (SEO:005380) is on a roll. The Seoul-based automaker has boosted sales in the U.S., where demand for Toyota Motor Corp.’s (NYSE:TM) models has plunged. The Genesis, Hyundai’s first luxury car for the U.S. market, won top honors at the Detroit car show in January and in three months the company will bring out its first hybrid in Korea. The stock has surged 34 percent this year.

Nokia Targets the U.S. Market
Is Nokia (NYSE:NOK) ready to change its fortunes in the U.S. market? The Finnish company has grown into the world’s largest mobile-phone maker by conquering country after country. But in the U.S., Nokia has steadily lost ground in recent years, watching its market share shrivel to single digits.

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Wall Street Rumors - March 27, 2009

Milla — Fri, 27 Mar 2009 16:06:52 +0000

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Top Risk Officers Remain at Insurer’s Helm
Inside American International Group Inc. (NYSE:AIG), a group of top executives called the Credit Risk Committee oversaw some of the company’s biggest bets, such as the insurer’s foray into credit-default swaps. But even after a $173 billion government bailout, this group, which reviewed and approved risk-taking decisions, remains largely unchanged.

Obama Seeks JPMorgan, Goldman Support on Bank Plan
Executives from some of the nation’s largest banks began arriving at the White House as President Barack Obama seeks support for his plan to stabilize the financial system and move beyond the furor over bailouts and bonuses. Jamie Dimon of JPMorgan Chase & Co. (NYSE:JPM), John Mack of Morgan Stanley (NYSE:MS) and Camden Fine, president of the Independent Community Bankers of America, arrived for the noon meeting of as many as 15 banking executives such as chief executive officers Vikram Pandit of Citigroup Inc. (NYSE:C) and Lloyd Blankfein of Goldman Sachs Group Inc. (NYSE:GS)

U.S. may give GM another 30 days to restructure
General Motors Corp. (NYSE:GM) isn’t likely to meet a government-set restructuring deadline in order to receive more taxpayer help, but President Barack Obama’s auto industry task force looks willing to extend the deadline by 30 days, according to a report Friday in The Wall Street Journal. Reports of a possible reprieve sent shares of GM more than 10% higher to $3.78 in early action, placing it among the few gainers on the Dow Jones Industrial Average.

Fed Buys $7.541 Billion of Treasuries to Lower Borrowing Costs
The Federal Reserve bought $7.541 billion of Treasuries in its second outright purchase of U.S. government debt in three days as part of the central bank’s efforts to lower consumer borrowing rates. Seven of the 18 securities maturing from April 2011 through April 2012 listed for possible acquisition were bought, according to the Federal Reserve Bank of New York Web site.

Google cuts 200 in second reduction of downturn
Google Inc. (NASDAQ:GOOG) said Thursday it will cut nearly 200 jobs in its global sales and marketing teams due to unchecked growth and “overlapping organizations.” The search giant announced the cuts in a posting on a company Web site. Once known for hiring prodigiously and lavishing employees with perks, Google has recently sought tighter control over costs. That comes even as the company has weathered the downturn relatively well.

Crude Oil Falls as Stronger Dollar Curbs Appeal of Commodities
Crude oil in New York fell the most in two weeks as a stronger dollar reduced the appeal of commodities to investors. Oil dropped as much as 4.7 percent after the U.S. currency rebounded against the euro on evidence the recession is deepening in Europe. A stronger dollar makes commodities less attractive as an alternative investment.

U.S. Raises Auto Fuel-Economy to 27.3 MPG for 2011
Cars and light trucks will be required to meet a U.S. fuel-economy average of 27.3 miles per gallon for 2011 models, the Obama administration said. The guidelines, posted online today for publication in the Federal Register, carry out a 2007 law intended to curb emissions and fuel use. The 2011 standard raises mileage by 2 mpg, an administration official said yesterday.

Air France-KLM shares slump on warning
Shares of Air France-KLM (EPA:AF) dropped as much as 7% in Paris trade Friday as Europe’s largest airline made its fifth profit warning of the year, and warned of a loss for this year and next as world trade deteriorates and corporate travel slumps. For the year to March 31, Air France-KLM said it will record a 200 million euro ($272 million) loss — after saying only a month ago that it would make an operating profit.

Facebook Is Hunting for More Money
Over the past few weeks, Facebook has been trying to secure as much as $100 million in debt financing, according to two sources with knowledge of the proposed transaction. Specifically, the company is looking for a handful of credit lines that would help it finance leases for the growing number of computers it needs to run its popular Web site. Such leases are used by well-known companies, including Google’s (NASDAQ:GOOG) YouTube video service, and are a common way to finance equipment purchases in Silicon Valley.

Las Vegas Project Weighs Bankruptcy
City Center, the $8.6 billion Las Vegas development owned by MGM Mirage (NYSE:MGM) and DubaiWorld, is preparing for a potential bankruptcy filing that could bring the massive project to a halt, according to people familiar with the situation.

IBM-Sun Acquisition May Make ‘1 Plus 1’ Less Than 2
International Business Machines Corp.’s (NYSE:IBM) acquisition of Sun Microsystems Inc. (NASDAQ:JAVA) could be bad news for the small suppliers that have grown up around the computer industry as their largest customers fuse. Network gear makers QLogic Corp. (NASDAQ:QLGC) and Emulex Corp. (NYSE:ELX) would be among suppliers with fewer places to sell their products, channeling pricing power to buyers.

As Sales Dry Up, Some Software Companies Resort to Freebies
Some technology companies are taking an unorthodox approach to selling software in the recession: giving it away. Unlike past promotions from America Online (ETR:AOL) or makers of antivirus software, these giveaways are business software that typically costs thousands of dollars or more. And they aren’t limited-time trials: companies get to keep the free software.

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Wall Street Rumors - March 26, 2009

Milla — Thu, 26 Mar 2009 14:11:42 +0000

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Fourth-Quarter GDP Revised Down; Jobless Claims Rise as Expected
The U.S. economy was weaker at the end of 2008 than previously believed, falling by the most in 26 years, while corporate profits lost more than a quarter of their value. Separately, new U.S. claims for state unemployment benefits rose as expected last week while total claims soared to a record high over 5.5 million, suggesting the economy continues to shed jobs at a rapid clip.

AIG Fights a Fire at Its Paris Unit
Amid the flap over bonuses at American International Group Inc. (NYSE:AIG) two of the company’s top managers in Paris have resigned. Their moves have left the giant insurer and officials scrambling to replace them to avoid an unlikely but expensive situation in which billions in AIG trading contracts could default.

Top Barclays Officers Land in Hot Seat
Barclays PLC (NYSE:BCS) Chief Executive John Varley and Chairman Marcus Agius have been among the Teflon men of the financial crisis, deflecting criticism and hanging on to their posts as counterparts at rival banks fell amid heavy losses and government bailouts.

BofA to Fold Premier Into Merrill Unit
Bank of America Corp. (NYSE:BAC) is folding its Premier Banking unit into Merrill Lynch Global Wealth Management, laying off several hundred workers in a division once touted as a potential driver of new revenue and profit.

GM’s UAW Buyout Is Said to Exceed 6,000 U.S. Workers
General Motors Corp. (NYSE:GM) has persuaded more than 6,000 United Auto Workers members to take buyouts, meeting internal company goals and almost doubling a Barclays Capital estimate, people familiar with the results said. The Detroit-based automaker will announce the participation today, said the people, who asked not to be identified because the tally is unofficial. The buyouts, about 10 percent of GM’s UAW workforce, may open slots for GM to hire workers for half the current union rate.

Has Oracle run out of companies to buy?
Last week, Oracle Corp.’s (NASDAQ:ORCL) first dividend payment in the company’s nearly 30-year history was a signal to many on Wall Street that the software giant is slowing down its acquisition frenzy. Oracle’s spree kicked into high gear in 2006, when the company bought 18 firms. However, it appears to be slowing down, with 13 deals in 2007 and 10 last year.

IBM Cuts Jobs as It Seeks Stimulus Money
Reports of deep job cuts at International Business Machines (NYSE:IBM) come at a potentially delicate time for the company—just as it is hoping to secure money from the federal stimulus package. The company will lay off as many as 5,000 U.S. workers in its Global Business Services unit, transferring some of the work they performed to India, according to media reports.

GameStop Fourth-Quarter Profit Rises on Wii, ‘Guitar Hero’
GameStop Corp. (NYSE:GME), the world’s largest video-game retailer, said fourth-quarter profit rose 22 percent on holiday sales of “Guitar Hero” and Nintendo Co.’s (TYO:7974) Wii console. Net income increased to $232.3 million, or $1.39 a share, from $189.8 million, or $1.14, a year earlier, the Grapevine, Texas-based company said today in a statement distributed by Business Wire.

Dr Pepper Snapple posts $621M loss in 4th quarter
Dr Pepper Snapple Group Inc. (NYSE:DPS) said Thursday that it lost $621 million in the fourth quarter as it wrote down assets and spent heavily on restructuring and severance, but its adjusted profit was better than Wall Street expected. The seller of drinks such as A&W, Squirt and Hawaiian Punch lost $2.44 per share in the quarter that ended Dec. 31, compared to a profit of $138 million, or 54 cents per share, a year earlier.

Morgan Stanley, MUFG to merge Japan brokerages
Morgan Stanley (NYSE:MS) and Mitsubishi UFJ Financial Group (NYSE:MTU) will establish a new securities company in Japan by merging their local brokerage units by next spring, the two companies said Thursday. As widely expected, Mitsubishi UFJ Financial Group Inc., Japan’s biggest banking group known as MUFG, will take a 60 percent stake in the new entity. The U.S. investment firm will own the remaining 40 percent share.

The Apps Battle Heats Up
On Apr. 1, Mike Lazaridis, co-CEO of Research in Motion (NASDAQ:RIMM), is expected to take the stage at the wireless industry’s annual trade show in Las Vegas and open the virtual doors to a much anticipated new online store. Now, Nokia (NYSE:NOK), Microsoft (NASDAQ:MSFT), and Palm (NASDAQ:PALM) plan to follow RIM with virtual software stores of their own this year.

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Wall Street Rumors - March 25, 2009

Milla — Wed, 25 Mar 2009 13:24:04 +0000

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Obama Defends Budget, Says Spending Will Pay Off
President Barack Obama used a prime-time news conference to defend his $3.6 trillion budget plan, digging in on his ambitious spending and tax proposals one day before the plan begins to move in Congress. Ahead of next week’s global economic summit, Mr. Obama also took a subtle swipe at European leaders who have questioned his administration’s calls for their countries to offer up more economic stimulus.

U.S. Durable Goods Orders Unexpectedly Jumped 3.4%
Orders for U.S. durable goods unexpectedly rose in February on a rebound in demand for machinery, computers and defense equipment. The 3.4 percent increase, the first gain in seven months, followed a 7.3 percent decrease in January that was larger than previously estimated, the Commerce Department said today in Washington.

Drive to Tax AIG Bonuses Slows
Congress’s drive to recoup bonuses at American International Group Inc. (NYSE:AIG) is slowing significantly as passions on the issue cool, potentially removing a wedge that has threatened to derail the Obama administration’s broader agenda. The bonuses sparked an outpouring last week in the House, which voted overwhelmingly to impose a 90% tax on many bonuses, not just at AIG but at all institutions receiving significant financial-bailout support.

GE Wins Natural-Gas Contract in China
General Electric Co. (NYSE:GE) said it has won a $300 million contract to supply compression equipment for the second phase of a natural-gas pipeline across China. GE Oil & Gas executives say the West-to-East pipeline is one of the largest ongoing gas pipelines in the world and, when completed in the next six years, will stretch roughly 20,000 kilometers through 13 provinces and bring $600 million in revenue to GE.

Google steadied exec pay, trimmed bonuses
Google Inc. (NASDAQ:GOOG) held base salaries for its top executives steady in 2008 and slightly trimmed their bonuses as the souring economy spread caution in Silicon Valley, according to an annual regulatory filing. Google disclosed in its annual proxy statement for 2008 that it opted to keep salaries for executives other than its CEO and co-founders steady at $450,000, following an increase in 2007 from $250,000.

Pay Falls 37% for Ford’s Mulally
Ford Motor Co. (NYSE:F) cut total compensation for its top three executives in 2008 by more than one-third as the auto maker continues to weather poor sales and billions in losses. The company is the only member of the Detroit Three to go without a government bailout. Its cross-town rivals, General Motors Corp. and Chrysler LLC, were awarded $17.4 billion to keep them out of bankruptcy while the Obama administration evaluates the companies’ long-term viability.

A Dell Smartphone Would Face Big Hurdles
Instead of rushing to compete with the entrenched iPhone and BlackBerry, Dell (NASDAQ:DELL) should consider making larger mobile Internet devices, or buying Palm. Dell CEO Michael Dell has done little to dispel rumors that his company is working on a mobile computing device. In fact, he all but confirmed them while traveling in Japan on Mar. 24 when he said: “It is true that we are exploring smaller-screen devices.”

Blockbuster to sell, rent movies through TiVo
Blockbuster Inc. (NYSE:BBI) plans to rent and sell its movies and TV shows through TiVo Inc.’s (NASDAQ:TIVO) digital video recorders in the second half of this year. The Dallas-based video rental company is playing catch-up to rival Netflix Inc. (NASDAQ:NFLX), which already offers free instant streaming of its movies and TV shows through TiVo DVRs and other devices with its “Watch Instantly” service.

Porsche Obtains EU10 Billion Loan After Rounding Up New Lenders
Porsche SE (FRA:PAH3), maker of the 911 sports car, turned to new banks to help refinance a 10 billion- euro ($13.5 billion) loan needed to buy Volkswagen AG (FRA:VOW) stock. Former lenders Merrill Lynch and ABN Amro didn’t take part. The credit crunch and recession meant banks took longer to sign up for the facility, which replaces one coming due this month, Porsche said today.

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Wall Street Rumors - March 24, 2009

Milla — Tue, 24 Mar 2009 13:33:02 +0000

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AIG’s Bonus Unit Now in IRS’s Sights
Some of the same banks that got government-funded payouts to settle contracts with American International Group Inc. (NYSE:AIG) also turned to the insurer for help cutting their income taxes in the U.S. and Europe, according to court records and people familiar with the business. The Internal Revenue Service is challenging some of the tax deals structured by AIG Financial Products Corp., the same unit of the New York company that has caused political ire over $165 million in employee bonuses.

U.S. Stock-Index Futures Retreat; European Shares Fluctuate
U.S. stock-index futures fell and European shares fluctuated as banks and raw-material producers retreated after the biggest rally in the Standard & Poor’s 500 Index in five months. Asian shares advanced. Bank of America Corp. (NYSE:BAC) slid 4.5 percent after surging 26 percent yesterday. Rio Tinto Group (LON:RIO) and BHP Billiton Ltd. (NYSE:BHP) dropped for the first time in four days as copper snapped its longest streak of gains since 2007.

Geithner Tempts Investors With Loans, 25% Returns
The U.S. government’s plan to rid banks of toxic assets may attract investors with financing that helps generate returns as high as 25 percent, fund managers and analysts said. Loans from the Federal Reserve and Federal Deposit Insurance Corp. debt guarantees will bring out the bidders, said Paul DeRosa, a principal of Mount Lucas Management Corp., a $1 billion hedge fund based in Princeton, New Jersey.

Japan automakers’ sales tumble in February
Japanese automakers reported on Tuesday sharp declines in domestic sales and exports for the month of February, along with similar drops in global production. Toyota Motor Corp. (NYSE:TM), Japan’s largest automaker, reported that worldwide auto production, including output from its subsidiaries Daihatsu Motor Co. Ltd. and Hino Motors Ltd., fell by 49.6% in February from a year ago, to 434,179 units.

Dollar General Is Paying Off for KKR Fund
Dollar General Corp., owned by private-equity firm Kohlberg Kravis Roberts & Co., is expected to report strong fiscal 2008 results Tuesday. Its earnings before interest, taxes, depreciation and amortization, or Ebitda — a common measure of cash flow — rose about 35% for the 12 months ended Jan. 31, according to people familiar with the company.

Deutsche Bank and Credit Suisse Report Strong Start
Deutsche Bank AG (NYSE:DB) and Credit Suisse Group AG (NYSE:CS), two of Europe’s biggest banks, said 2009 started well after they posted losses last year and cut the compensation of their chief executive officers by about 90 percent. Deutsche Bank CEO Josef Ackermann said Germany’s biggest bank had a “good start” to the year and expects to return to profit after scaling back risky businesses and shedding toxic assets.

Buffett almost ‘in the money’ with Goldman warrants
Goldman Sachs (NYSE:GS) warrants held by Warren Buffett’s Berkshire Hathaway (NYSE:BRK) are close to becoming a lot more valuable after a sharp rally in the investment bank’s shares in recent months. In early October, Berkshire invested $5 billion in Goldman, getting 50,000 cumulative perpetual preferred shares in the investment bank that pay 10% a year.

Gap’s Banana Republic to open accessories store
Gap Inc.’s (NYSE:GPS) upscale Banana Republic chain, struggling with declining sales, plans to open a test store selling limited-edition accessories mostly below $100 to lure ever-more discriminating shoppers seeking both style and value. Edition by Banana Republic — featuring limited-edition handbags and jewelry, along with some shoes, sunglasses and personal-care products from Banana Republic — will open exclusively in Gap’s hometown Westfield San Francisco Centre in May.

Coca-Cola Rejection Defended by China’s Ministry of Commerce
China’s Ministry of Commerce defended its blocking of Coca-Cola Co.’s (NYSE:KO) bid for the nation’s biggest domestic juice maker, denying the decision was aimed at protecting a national brand. Coca-Cola’s acquisition of China Huiyuan Juice Group Ltd. (HKG:1886) would have hurt competition by strengthening its control of China’s juice and beverage market and enabling it to abuse its dominance, the ministry said in a statement on its Web site, providing its first detailed explanation of its decision.

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Wall Street Rumors - March 23, 2009

Milla — Mon, 23 Mar 2009 14:09:32 +0000

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Treasury Plan to Deal With Toxic Assets Banks on Private Cash
Noting that the U.S. financial system “is still working against economic recovery,” the U.S. Treasury Department on Monday revealed details of its plan to address toxic assets weighing on banks’ balance sheets. Treasury said one major reason the financial system is still facing challenges is because of “legacy assets” and securities that are compromising banks’ ability to raise capital and their willingness to boost lending. Under the new program — the Public-Private Investment Program — the Treasury Department,

Walgreen Climbs After Sales, Profit Beat Analysts’ Estimates
Walgreen Co. (NYSE:WAG), the second-largest U.S. drugstore chain, rose 5.8 percent in early trading after second-quarter profit and sales exceeded analysts’ estimates. Revenue climbed 7 percent to $16.5 billion in the three months ended Feb. 28, the company said today in a statement.

Daimler to receive $2.7 billion Abu Dhabi investment
Shares of Daimler (NYSE:DAI) climbed as much as 8% Monday, gaining after Abu Dhabi’s Aabar Investments agreed to invest 1.95 billion euros ($2.7 billion) in the luxury-car maker. Terms call for Aabar to acquire about 96.4 million newly issued shares at a price of 20.27 euros each, a 5% discount to Friday’s closing price.

AIG’s Rivals Blame Bailout For Tilting Insurance Game
The federal bailout of insurance giant American International Group Inc. (NYSE:AIG), designed to help stabilize financial markets, is roiling another corner of the corporate world. AIG’s competitors claim the insurer’s federal lifeline is unfairly tilting the commercial-insurance playing field. And they’re pressing federal officials to crack down.

Time Warner to Invest $241.5 Million in Lauder’s CME
Time Warner Inc. (NYSE:TWX) will invest $241.5 million in Central European Media Enterprises Ltd. (NASDAQ:CETV) in exchange for about a 31 percent stake in the television station operator founded by cosmetics billionaire Ronald Lauder. Time Warner will receive 14.5 million Class A shares and 4.5 million Class B shares of CME, the companies said today in a statement distributed by Business Wire.

Skype Targets Businesses to Ring Up New Revenue
EBay Inc.’s (NASDAQ:EBAY) Skype Internet phone unit, on the hunt for new sources of revenue, is making a push into the corporate market. On Monday, Skype plans to announce a version of its Internet calling software that connects to corporate phone systems. Initially, the company will charge about 2.1 cents per minute for calls to cellphones and fixed lines, but calls from computers to phone systems using the Skype software will be free.

WaMu parent sues FDIC for $13 billion
The holding company for Washington Mutual Bank (OTC:WAMUQ) filed a lawsuit, charging that the Federal Deposit Insurance Corp. improperly sold its banking operations to J.P. Morgan Chase (NYSE:JPM) and could have gotten more money for those assets, media reports say.

Ford Doubles Buyback Amount for Loans to $1 Billion
Ford Motor Co.’s (NYSE:F) finance arm doubled to $1 billion the amount of the automaker’s term-loan debt it will buy back, as the company trims borrowings to avoid government aid. The repurchase was increased because the offer was oversubscribed, Ford Motor Credit Co. said today in a statement. The unit also said bondholders seeking a premium for early acceptance of another buyback proposal claimed $1.1 billion of the $1.3 billion the company plans to spend on it.

Suncor to Buy Petro-Canada in Record C$19.3 Billion Takeover
Suncor Energy Inc. (NYSE:SU), the world’s second-largest oil-sands producer, agreed to buy Petro-Canada (NYSE:PCZ) for C$19.3 billion ($15.6 billion) in a record takeover that will create the biggest Canadian energy company. Owners of Petro-Canada will get 1.28 shares of the combined company for each of their shares, the Calgary-based oil producers said today in a statement.

AT&T, Verizon get the (TV) picture
Despite the worst recession in decades, Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) continue to sign up customers for their TV services and put pressure on cable and satellite rivals. The two phone giants could each add more than 1 million TV customers in 2009, analysts say — if for no other reason than Verizon and AT&T are making their service available in more cities and towns.

Tiffany profit tumbles on higher costs, lower demand
Tiffany & Co. (NYSE:TIF) said Monday that its fourth-quarter profit plunged 76%, hurt by job cuts, store-closing costs and faltering demand in the face of global recession. Net income in the quarter-ended Jan. 31 dropped to $31.1 million, or 25 cents a share, from $127.4 million, or 96 cents, a year earlier. Sales dropped 20% to $841.2 million from $1.05 billion, the New York-based company said.

Intel Freezes Top Salaries, Reprices Employee Options
Intel Corp., (NASDAQ:INTC) the world’s largest chipmaker, froze salaries for top executives and overhauled its option pricing for employees as the economic slump weighs on chip orders. The company, whose net income fell 24 percent last year, won’t give raises to managers including Chief Executive Officer Paul Otellini and finance chief Stacy Smith, according to a regulatory filing. Intel also will allow employees to exchange underwater stock options for ones with lower prices.

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Wall Street Rumors - March 20, 2009

Milla — Fri, 20 Mar 2009 14:16:52 +0000

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Citigroup’s Crittenden Replaced as Finance Chief
Citigroup Inc. (NYSE:C), whose biggest shareholder is poised to be the U.S. taxpayer, reassigned Chief Financial Officer Gary Crittenden to oversee the Citi Holdings unit that houses $850 billion of assets the bank plans to sell. Crittenden, 55, is the former American Express Co. (NYSE:AXP) CFO who joined Citigroup in March 2007.

Sony Ericsson issues first-quarter profit warning
Sony Ericsson Mobile Communications Friday warned that it would post a pretax loss of as much as 390 million euros ($533 million) in the first quarter as handset sales continued to suffer from weak consumer spending and inventory buildups.

Apollo Mulls Taking Stake in Charter
Private-equity firm Apollo Management is in talks to take a substantial ownership stake in Charter Communications Inc. (NASDAQ:CHTR) as part of the cable company’s bankruptcy reorganization, according to people familiar with the talks. Apollo controls a large chunk of Charter debt, which it will swap for equity as part of the company’s restructuring.

BofA Provides Cuomo With Merrill Bonus List
New York Attorney General Andrew Cuomo received the identities Thursday of the 200 highest-paid bonus recipients at Merrill Lynch & Co. (NYSE:MER) prior to a merger with Bank of America Corp. (NYSE:BAC) on Jan. 1. The delivery of names followed a Wednesday order from New York State Supreme Court Justice Bernard Fried denying Bank of America’s request that such details be kept confidential.

Weber Says ECB Could Offer Banks Longer-Term Loans
European Central Bank council member Axel Weber said the bank will lower interest rates again and may extend the maturities its loans to banks to push down long-term borrowing costs. The ECB still has “room to maneuver” on interest rates “which we will use,” Weber said in a speech in Berlin today.

Treasury to free up $5 billion for auto-parts makers
The U.S. Treasury Department on Thursday offered up to $5 billion in financial backing to ailing auto-parts makers, sending shares of the sector leaders, many of which have moved dangerously close to zero, into a torrid rally. The program, the first direct step in President Barack Obama’s broader rescue of the auto industry.

GE Capital Shows Investors a ‘More Sober’ Outlook
General Electric Co.’s (NYSE:GE) six-hour review of its finance arm provided what investors called a “more sober” assessment of its earnings power during a global recession and credit crunch. GE backed its $5 billion target for GE Capital while saying earnings would be closer to $2.5 billion if this month’s economic conditions prevail for the full year.

Wal-Mart awards $2 billion to U.S. hourly employees
At a time when many companies have curtailed bonuses and merit raises, Wal-Mart Stores Inc. (NYSE:WMT) said Thursday it is increasing its incentives to its U.S. hourly associates by 11% to about $2 billion. In a memo to employees Thursday, Wal-Mart CEO Mike Duke said the award includes $933.6 million in bonuses, which jumped by almost half from last year, $788.8 million in profit sharing and 401(k) contributions, and millions of dollars in merchandise discounts and contributions to the associate stock purchase plan.

Travel Spending Sinks Sharply
Spending on travel and tourism declined last year for the first time since the Sept. 11, 2001, terrorist attacks, the Commerce Department said Thursday, as Americans canceled vacations, a strong dollar kept foreigners away and businesses slashed travel budgets. Spending fell at a 22% annualized rate in the October through December quarter, compared with the prior three-month period.

Lonmin draws jeers ahead of FTSE 100 re-entry
Platinum miner Lonmin (LON:LMI) is about to re-join the ranks of the top 100 U.K.-listed companies, but many in the market say the company shouldn’t be uncorking champagne. Lonmin will re-enter the FTSE 100 on Monday, one of five additions to the top ranks.

Pfizer, BHP Billiton Lead Record Non-Financial U.S. Bond Sales
Pfizer Inc. (NYSE:PFE), maker of the world’s best-selling drug Lipitor, and BHP Billiton Ltd. (NYSE:BHP) led $25 billion in non-financial bond sales by investment-grade companies this week, the biggest on record. Rising sales may be an indication of investor confidence in government efforts to thaw credit markets, which seized up last fall after Lehman Brothers Holdings Inc. made the biggest bankruptcy filing in U.S. history on Sept. 15.

Xerox Lowers First-Quarter Outlook
Xerox Corp. (NYSE:XRX) sees first-quarter earnings well below already-downbeat expectations in part on slumping spending by corporations as the company plans to cut another $300 million in costs. Details on where the savings would come from weren’t disclosed, but come on top of plans to save $250 million this year, largely from last year’s 5% cut in the work force.

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Wall Street Rumors - March 19, 2009

Milla — Thu, 19 Mar 2009 13:22:37 +0000

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Some Will Pay Back AIG Bonuses
Some top employees of American International Group Inc.’s (NYSE:AIG) disgraced Financial Products group have agreed to return hefty retention bonuses under mounting public outrage over $165 million in payouts to a unit that brought the insurer to its knees.

Fed in Bond-Buying Binge to Spur Growth
The Federal Reserve ramped up its effort to revive the economy, declaring it would buy as much as $300 billion of long-term U.S. Treasury securities in the next few months and hundreds of billions of dollars more in mortgage-backed securities. The Fed had already cut its benchmark interest-rate target to near zero. Unable to go lower, the central bank now is essentially printing money to raise the supply of credit and thus push down the longer-term rates paid by families and companies on mortgages and other key loans. The impact was immediately felt.

Stocks Rise; MSCI World Has Longest Streak of Gains Since 2006
Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II. The MSCI World advanced for an eighth day, led by banks and raw-material producers, the past year’s worst performers. Gains in Standard & Poor’s 500 Index futures were limited after U.S. stocks closed at a one-month high yesterday as some investors questioned whether the Fed’s efforts will end the economic contraction.

FedEx to Extend Pay, Job Cuts as Profit Falls 75%
FedEx Corp. (NYSE:FDX), the second-largest U.S. package-shipping company, said quarterly profit slid 75 percent and sales fell for the first time in at least a decade as domestic air shipments fell in the worsening economy. The company said it would extend pay cuts to some non-U.S. workers and cut an unspecified number of jobs as it seeks to remove $1 billion from operating costs by next year.

Oracle profit slips, but sales steady
Oracle Corp. (NASDAQ:ORCL) reported a reduced profit for its third fiscal quarter, citing the impact of currency exchange rates, though its final result still topped Wall Street’s estimates. The business software giant also declared its first-ever quarterly dividend of 5 cents a share. Oracle stock rose more than 7% Thursday in premarket action.

Final Chapter for Sun Micro Could Be Written by IBM
Sun Microsystems Inc. (NASDAQ:JAVA) has been at the leading edge of some of the biggest trends in computing since the 1980s. But the Silicon Valley company has often lagged behind at making money from them. The disclosure of talks for Sun to sell itself to International Business Machines Corp. (NYSE:IBM) caused Sun’s stock to jump nearly 79% Wednesday to $8.89 on the Nasdaq Stock Market.

Cisco Systems to Buy Pure Digital for $590 Million in Stock
Cisco Systems Inc. (NASDAQ:CSCO), the world’s largest maker of networking equipment, said it agreed to buy Pure Digital Technologies Inc. for $590 million in stock, acquiring a maker of flip-open camcorders small enough to fit in one hand.

Citi files to launch exchange offer, reverse split
Citigroup Inc. (NYSE:C) on Thursday filed a registration statement with the Securities and Exchange Commission to seek shareholder approval to convert preferred shares into common stock under its previously announced plan to build capital. Citi said in a Securities and Exchange Commission filing Thursday that it has reached definitive agreements with private preferred shareholders to convert $12.5 billion of the securities into common shares.

Discover Profit Drops as More Borrowers Default; Dividend Cut
Discover Financial Services (NYSE:DFS), the Riverwoods, Illinois-based credit-card company, said profit fell 50 percent as borrowers fell behind on payments and the company set aside more to cover bad debt. It cut the dividend to 2 cents a share. Discover’s fiscal first-quarter earnings from continuing operations fell to $120 million, or 25 cents a share, from $239 million, or 50 cents a share a year earlier, the company said in a statement distributed by Business Wire today.

Gold Jumps, Oil Tops $50 as Inflation Concern Spurs Commodities
Gold jumped the most since November and oil exceeded $50 a barrel for the first time in two months on speculation the Federal Reserve’s steps to spur growth will revive demand for commodities as a hedge against inflation. Gold futures in New York rose as much as $52.50, or 5.9 percent, to $941.60 an ounce after the Fed said it will buy as much as $300 billion of U.S. government bonds, adding to the supply of dollars. Heating oil rallied 4.5 percent, copper gained 4.2 percent and aluminum advanced 3.6 percent.

Nike profit drops 47% on slower demand
No. 1 athletic-shoe maker Nike Inc.’s (NYSE:NKE) fiscal third-quarter profit fell 47%, hurt by higher costs, slack demand in Europe and weakness at its Umbro brand, financial results showed Wednesday. Net income fell to $243.8 million, or 50 cents a share, down from $263.8 million, or 92 cents a share, in the year-ago period. Nike’s profit was hurt by charges to mark down goodwill and other assets at Umbro, a big seller of soccer gear. Sales fell 2% to $4.44 billion.

Americans Getting Jobless Benefits Reach 5.5 Million
The number of Americans collecting jobless benefits swelled to a record 5.47 million, indicating that former employees are unable to find new work as companies continue to cut costs. The number of people staying on benefit rolls jumped by 185,000 in the week ended March 7, from 5.29 million the previous week, the Labor Department said today in Washington.

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Wall Street Rumors - March 18, 2009

Milla — Wed, 18 Mar 2009 13:24:34 +0000

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Consumer Prices in U.S. Increase More Than Forecast
The cost of living in the U.S. rose more than forecast in February, easing concern that the inflation rate will fall below the Federal Reserve’s preferred level. The consumer price index rose 0.4 percent after a 0.3 percent increase in January, the Labor Department said today in Washington. Excluding food and fuel, the so-called core rate climbed 0.2 percent for a second month. Fuel, clothing and automobile costs led the advance last month.

Airbus, Boeing Must Slash Output or Boost Funding, Lessors Say
Airbus SAS and Boeing Co. (NYSE:BA) must slash production or risk having to finance jet sales themselves as credit tightens, according to International Lease Finance Corp., the biggest aircraft lessor by fleet value. With record backlogs of 3,715 planes at Airbus and 3,633 at Boeing, work is booked solid for eight years and the companies say build rates won’t tumble even after a slump in flying that picked up pace last September as the collapse of Lehman Brothers prompted businesses to curb travel budgets.

IBM reportedly in talks to buy Sun Microsystems
International Business Machines Corp. (NYSE:IBM) is in talks to buy Sun Microsystems (NASDAQ:JAVA) for at least $6.5 billion in a deal that would put hardware back at the core of Big Blue’s operations and bolster its computer-server business, according to a published report.

Fund managers most optimistic in three years
Fund managers are their most optimistic about the outlook for the global economy since late 2005, thanks to renewed hopes for growth in China, though risk appetite has deteriorated, according to Merrill Lynch’s monthly survey. The number of managers expecting economic growth over the next 12 months exactly balanced the number expecting a further contraction, the survey found. That compares to a net 24% expecting a contraction at the start of the year.

China Rejects Coca-Cola, Huiyuan Deal
China’s government rejected Coca-Cola Co.’s(NYSE:KO) $2.4 billion bid to acquire one of China’s largest juice makers, saying the deal — which would have been the largest-ever foreign takeover of a Chinese company — would unduly restrict competition.

British Unemployment Rises Most Since at Least 1971
More Britons joined the jobless rolls than at any time since 1971 as the recession destroyed work in factories, building sites and banks, threatening to further erode Prime Minister Gordon Brown’s popularity. The jobless figure rose 138,400 to 1.39 million, the Office for National Statistics said today. That’s more than the population of Cambridge and compares with the increase of 84,800 forecast by a Bloomberg survey of 20 economists.

Iran’s Cheap Goods Stifle Iraq Economy
Brick-factory owner Dhary al-Shimary is thinking of calling it quits after 30 years in business, even though Iraq’s demand for bricks has never been higher. From bricks to buses to rice, Iranian imports have poured into markets across war-torn Iraq. The goods are providing Iraqis with many cheap products they otherwise can’t afford or make themselves. But they’re also undermining local industries that are struggling to compete at a time when job creation is a top priority for both Baghdad and Washington.

Hedge Funds May Get AIG Cash
Some of the billions of dollars that the U.S. government paid to bail out American International Group Inc. (NYSE:AIG) stand to benefit hedge funds that bet on a falling housing market, according to people familiar with the matter and documents reviewed by The Wall Street Journal. The documents show how Wall Street banks were middlemen in trades with hedge funds and AIG that left the giant insurer holding the bag on billions of dollars of assets tied to souring mortgages.

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Wall Street Rumors - March 17, 2009

Milla — Tue, 17 Mar 2009 14:52:04 +0000

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Political Heat Sears AIG
President Barack Obama said Monday that he would “pursue every single legal avenue to block” $165 million in bonuses to American International Group Inc. (NYSE:AIG) employees who were in part responsible for the insurance giant’s near collapse. But hours later, administration officials said the payouts made Friday couldn’t be extracted from their recipients without a legal fight that would cost the taxpayers even more.

U.S. Housing Starts Unexpectedly Increase on Condos
Housing starts in the U.S. unexpectedly snapped the longest streak of declines in 18 years in February, adding to signs that the pace of the economy’s decline may be easing. Work began on 583,000 homes at an annual rate, a 22 percent rise from January, the Commerce Department said in Washington today. The jump was influenced by warmer weather and an 82 percent surge in starts on condominiums, apartments and townhouses that’s unlikely to be sustained, analysts said.

Apple, Dell lead early tech gains
Technology stocks put in a strong early trading performance Tuesday, as gains from Apple Inc. (NASDAQ:AAPL) and Dell Inc. (NASDAQ:DELL) gave a slight lift to the sector that was trying to come back from the previous session’s losses. With tech stocks leading the pace, the Nasdaq Composite Index rose 13.7 points to 1,417. The Philadelphia Semiconductor Index was up 1.5% and the Morgan Stanley High Tech 35 Index rose 1%.

Nokia to cut 1,700 jobs
Nokia (NYSE:NOK), the world’s largest maker of cell phones, said it was cutting 1,700 jobs worldwide in response to “pruned” demand from consumers. Nokia, in its third announcement this year involving reduced employment, said it was cutting the jobs in its devices and markets unit as well as in its corporate development office and global support functions.

Wagoner Confident That GM Would Fare Better Outside of Bankruptcy
General Motors Corp. (NYSE:GM) Chief Executive Rick Wagoner said Tuesday the company remains confident it can restructure outside of bankruptcy court and warned that filing for bankruptcy could lead management and the board to lose considerable control. Mr. Wagoner, speaking to reporters in Washington, said that bankruptcy “could work but it might not work.”

Pfizer Plans Five-Part Sale of $13.5 Billion of Notes
Pfizer Inc. (NYSE:PFE), the world’s biggest drugmaker, is planning a five-part, $13.5 billion sale of notes to help finance its purchase of Wyeth (NYSE:WYE) in the biggest non-financial offering since Roche Holding AG’s sale in February. Bankers for New York-based Pfizer are marketing the bonds at yields of 1.95 percentage points to 3.45 percentage points more than benchmarks, according to a person familiar with the offering who declined to be identified because terms aren’t set. Roche paid yields of 2 percentage points to 3.65 percentage points last month for debentures of similar maturity.

Oil swings on inventories expectation, housing data
Crude-oil futures swung between gains and losses Tuesday, as data showing a surge in U.S. housing starts offset expectations that U.S. crude inventories rose last week, the second in a row. Plus, options on the front-month April futures contract expire Tuesday, adding more volatility to crude trading as traders scrambled to cover their option positions before they expire.

Philip Morris Pushes ’09 Bond Sales to EU100 Billion
Bond sales by Philip Morris International Inc. (NYSE:PM) and Deutsche Lufthansa AG (FRA:LHA) today will push European issuance for the year above 100 billion euros ($130 billion), the quickest it has ever reached that level. Companies are taking advantage of the first drop in yields relative to government debt in two weeks to sell more than 5 billion euros of bonds, according to Merrill Lynch & Co. data.

Goldman Sachs Offers Loans to Employees to Aid Fund Investments
Goldman Sachs Group Inc. (NYSE:GS), which set a record for Wall Street bonuses in 2007, offered loans to more than 1,000 employees to help them meet obligations to put more money into Goldman’s private equity and real-estate funds. The loans are being made at market rates and are fully collateralized, said Ed Canaday, a spokesman for the New York- based firm. They will range from thousands to hundreds of thousands of dollars.

Alcoa shares hit hard on dividend cut
Alcoa (NYSE:AA) shares dropped more than 10% Tuesday after the aluminum giant announced that it will slash its dividend and cut back on capital spending in an effort to position the company to withstand a “prolonged” downturn. At last check, Alcoa component of the Dow Jones Industrial Average, shed 62 cents to $5.50.

Obama Says He Won’t Give Up Health-Care, Education Budget Plans
President Barack Obama said he won’t scale back his plans to revamp the health-care and education systems in his proposed $3.6 trillion budget, saying they represent investments to assure long-term economic growth.

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Wall Street Rumors - March 16, 2009

Milla — Mon, 16 Mar 2009 13:57:27 +0000

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AIG Faces Growing Wrath Over Payouts
Troubled insurer American International Group Inc. (NYSE:AIG), now 80% owned by U.S. taxpayers, spent the weekend deflecting mounting criticism of how government funds have been funneled to various banks and used to pay employee bonuses at the business unit that almost sank the company.

Wells Fargo Chief Assails TARP, Calls Stress Test ‘Asinine’
Wells Fargo & Co. (NYSE:WFC) Chairman Richard Kovacevich criticized the U.S. for retroactively adding curbs to the Troubled Asset Relief Program, which he said forced the bank to cut its dividend, and called the administration’s plan for stress-testing banks “asinine.”

HSBC CFO says it won’t need U.K. bailout
Banking major HSBC Holdings (NYSE:HBC) won’t require a U.K. government bailout even if economic conditions deteriorate further, its chief financial officer said, according to a newspaper report Monday. The U.K.- and Hong Kong-listed bank was also unlikely to go back to shareholders for more capital, after raising $17.7 billion earlier this month through a rights share holding, CFO Douglas Flint said, according to a report in the South China Morning Post.

U.S. Industrial Production Fell in February for Fourth Month
Output at factories, mines and utilities dropped 1.4 percent last month, more than forecast, after a revised decline of 1.9 in January, the Federal Reserve said today in Washington. The amount of factory capacity is use slumped to 70.9 percent, matching the lowest level on record.

Barclays in Talks to Sell iShares, Has ‘Strong Start’
Barclays Plc is in talks to sell its iShares exchange-traded funds unit as the U.K.’s third- biggest bank tries to bolster capital without turning over a stake to the government. Barclays rose as much as 23 percent after the London-based bank disclosed the negotiations and said it had a “strong start” to 2009. IShares may be valued at about 2 billion pounds ($2.84 billion) based on its earnings and similar recent deals, estimated Alex Potter, an analyst at Collins Stewart Plc.

OPEC Holds Oil Output Steady
The decision shows the high-wire act the Organization of Petroleum Exporting Countries is having to perform as it faces the worst world-wide economic crisis in its almost half century of existence. On one hand, crude stocks are still high, meaning prices could stay lower than OPEC likes for months to come. On the other, pushing the price of oil too high could entrench the downturn and hinder an economic recovery.

Citigroup Nominates Four Board Members as Part of Revamp
Citigroup Inc. (NYSE:C), whose biggest shareholders may soon be U.S. taxpayers, nominated four new board members in a government-induced shakeup after the Obama administration orchestrated the bank’s third rescue attempt in five months.

Discover unveils $1.2 billion Treasury investment
Discover Financial Services (NYSE:DFS) said late Friday that it got a $1.2 billion investment from the Treasury Department after the credit card issuer transformed itself into a bank-holding company to gain access to government support. Discover said it sold 1,224,558 shares of its preferred stock to the U.S. Treasury, along with a 10-year warrant to purchase 20,500,413 shares of its common stock at $8.96 each.

Will Cisco’s Project California Rock the IT Sector?
It’s been a long time since servers were a sexy topic in tech circles. These powerful computers that run corporate data networks make up a market that was red-hot in the 1990s and has since settled into a plodding shoving match amid IBM (NYSE:IBM), Hewlett-Packard (NYSE:HPQ), Dell (NASDAQ:DELL), and Sun Microsystems (NASDAQ:JAVA). But the computing industry is once again buzzing over servers—this time from a new entrant, Cisco Systems (NASDAQ:CSCO).

Foreign Demand for Long-Term U.S. Assets Declined in January
International demand for long-term U.S. financial assets fell in January, reflecting sales of corporate and government agency debt and China’s smallest net purchase since June. Total net sales of long-term equities, notes and bonds totaled $43 billion, compared with buying of $34.7 billion in December, the Treasury said today in Washington. Including short- term securities such as stock swaps, foreigners sold a net $148.9 billion, after net buying of $86.2 billion the prior month.

Euro back above $1.30 for first time in three weeks
The euro broke through the $1.30 level for the first time since February and the British pound rallied on Monday, as investors sought out riskier trades and global stocks continued to advance. The dollar index which measures the U.S. currency against a trade-weighted basket of six currencies, declined to 86.708 from 87.250.

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Wall Street Rumors - March 10, 2009

Milla — Tue, 10 Mar 2009 15:02:10 +0000

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Pandit Says Citigroup Having Best Quarter Since 2007
Citigroup Inc. (NYSE:C) Chief Executive Officer Vikram Pandit said his bank is having the best quarter since 2007, when it last posted a profit. The shares rose as much as 27 percent and helped spur gains for finance company stocks. Citigroup has logged five quarters of losses totaling more than $37.5 billion since it posted a $2.1 billion profit in the third quarter of 2007.

Dow Chemical, Rohm & Haas shares gain on deal
Rohm & Haas (NYSE:ROH) shares jumped more than 5% early Tuesday after Dow Chemical (NYSE:DOW) reached an 11th-hour agreement a day earlier to acquire the company for $78 a share and avoid what could have turned into a drawn out court battle.

Oil rises to near $48 as OPEC signals supply cuts
Oil rose to near $48 a barrel Tuesday after OPEC signaled it will likely announce another production cut within days, adding to large supply reductions the cartel has already implemented. Benchmark crude for April delivery was up 58 cents to $47.65 a barrel by midday in Europe on the New York Mercantile Exchange. Oil prices gained $1.55 on Monday to settle at $47.07.

Chevron Drills 43 Prospects to Stem Slide in Output
Chevron Corp. (NYSE:CVX), the second-biggest U.S. oil company, is drilling 43 major prospects from Australia to Canada after posting its biggest drop in output since 2003. Chief Executive Officer David O’Reilly is laying out growth plans in a presentation today to analysts in New York.

Ford to receive state aid from Romania
Ailing U.S. carmaker Ford Motor Co. (NYSE:F) will receive euro143 million ($182 million) in aid from the government of Romania, where the company owns a carmaking plant, lawmakers said Tuesday. The state aid, spanning until 2012, will support production of cars and engines at the factory in Craiova, in southern Romania.

McDonald’s Seeks Way to Keep Sizzling
McDonald’s Corp. (NYSE:MCD) has been one of the world’s most successful big companies during this recession. On Monday, the fast-food giant posted February sales results that most chains would envy.

EADS beats full year profit target
The parent company of planemaker Airbus on Tuesday reported an 89 percent gain in fourth-quarter net profit but warned of “very challenging” years ahead. European Aeronautics Defense and Space Co. said it expects a decline in profitability this year as it cuts aircraft prices and helps customers finance deliveries to cope with the darkening outlook for the global economy.

Delta to Trim Overseas Flying by 10%, May Cut Jobs
Delta Air Lines Inc. (NYSE:DAL), the world’s largest carrier, said it will reduce seats on international flights by an additional 10 percent because of the worsening recession and that it may need to cut more jobs.

Kodak, MGM Mirage Among Firms at Highest Default Risk
Eastman Kodak Co. (NYSE:EK) and casino operator MGM Mirage (NYSE:MGM) are among 283 U.S. companies at the highest risk of default, according to Moody’s Investors Service.

United Technologies to Cut 11,600 Jobs Worldwide
United Technologies Corp. (NYSE:UTX) plans to cut 11,600 jobs as a global recession and credit crunch lead to lower sales and profit than previously projected by the maker of Otis elevators and Carrier air conditioners.

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Wall Street Rumors - July 11, 2008

Milla — Fri, 11 Jul 2008 14:01:45 +0000

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Rattled Markets Set for Early Slide
Futures turned sharply lower Friday as Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) continued their harrowing descent and oil prices shot back into record territory, gaining back all of a large selloff in crude that cheered stock investors early this week.

GE’s Net Down, but Outlook Intact
General Electric Co. (NYSE:GE) posted a 5.8% drop in second-quarter net income, hurt by profit declines at its industrial-products division and its consumer-finance operation that failed to be offset by growth elsewhere.

Mortgage Giants Face Pressure Over Capital
Shares in of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) kept plunging Friday morning despite federal officials’ attempts to reassure investors about the financial health of the two mortgage giants.

InBev Boosts Offer for Anheuser-Busch
InBev NV (EBR:INB) boosted its takeover offer for Anheuser-Busch Cos. (NYSE:BUD) by $5 a share to $70 in an effort to seal a friendly deal with the iconic U.S. brewer, a person familiar with the matter said.

U.S. May Trade Gap Shrinks; Import Prices Surged in June
WASHINGTON — The U.S. trade deficit unexpectedly narrowed during May despite sharply climbing oil prices, as the amount of crude purchased by volume declined and the nation’s overall exports increased.

Credit Mutuel to Acquire Citigroup’s German Operations
PARIS — French unlisted bank Credit Mutuel Friday said it will buy Citigroup Inc.’s (NYSE:C) German retail operations, in a €4.9 billion ($7.7 billion) cash deal that will grant the unlisted bank a second major market in Europe.

June Is Cruel to Big Names As Prentice, Tosca Get Hit
The June stock-market rout has battered two high-profile hedge funds.

Crude Oil Rises to Record on Speculation Israel May Attack Iran
July 11 (Bloomberg) — Crude oil rose more than $5 to a record on concerns that Israel may be preparing to attack Iran, while a strike in Brazil and renewed militant activity in Nigeria threaten to cut supplies.

UAL to Have $2.7 Billion Cost on Writedown, Severance (Update1)
July 11 (Bloomberg) — United Airlines parent UAL Corp. (NASDAQ:UAUA) will record second-quarter costs of as much as $2.7 billion to write down the value of aircraft and all of its goodwill and to pay employee severance.

Ashland Buys Chemical Maker Hercules for $3.3 Billion
July 11 (Bloomberg) — Ashland Inc., (NYSE:ASH) the biggest U.S. chemical distributor, agreed to buy Hercules Inc. (NYSE:HPC) for $3.3 billion to double earnings and add additives used in adhesives, paper and paints.

Steve Jobs Nails It Again, and Again
Apple’s (NASDAQ:AAPL) iPhone 2 (or “iPhone 3G”), which goes on sale Friday, is a Steve Jobs’ product par excellence: brilliant, affordable and lust worthy — and also deeply uncompromised.

Lehman Brothers Again Hit by Credit Fears
Shares of Lehman Brothers (NYSE)LEH) sank to their lowest levels in more than eight years Thursday, after a rumor that bond giant Pimco was curtailing trading with the firm.

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wall street Rumors - July 10, 2008

Milla — Thu, 10 Jul 2008 13:26:55 +0000

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Dow Chemical Agrees to Buy Rohm & Haas for $15.3 Billion
Dow Chemical Co. (NYSE:DOW) said Thrusday it has agreed to buy Rohm & Haas Co. (NYSE:ROH) in an all-cash deal valued at $15.3 billion, possibly signaling the start of a consolidation wave in the chemicals industry.

Retail, Deal News Boost Futures
Futures activity suggested stock markets would rebound from a sharp selloff in the previous session after Wal-Mart Stores (nyse:WMT) saw its best monthly sales in years and Rohm & Haas (NYSE:ROH) agreed to be acquired by Dow Chemical (NYSE:DOW) at a large premium.

IPhone Calls On Software Developers
A much-anticipated new version of the iPhone will go on sale Friday, but Apple Inc. (NASDAQ:AAPL:) will at the same time take the wraps off another offering that could have a more lasting impact on the mobile phone business.

Some Retailers Get Sales Boost As Rebate Checks Reach Taxpayers

Retailers posted better-than-expected sales for June as federal rebate checks continued to reach taxpayers last month, with Wal-Mart Stores Inc. (NYSE:WMT) reporting its biggest same-store-sales increase in several years.

U.S. Mulls Future of Fannie, Freddie
The Bush administration has held talks about what to do in the event mortgage giants Fannie Mae (NYSE:FNM) and Freddie Mac (NSE:FRE) falter, according to three people familiar with the matter, as the stock prices of both companies continue to fall sharply.

Toyota Plans Changes To U.S. Manufacturing Operations
DETROIT — Toyota Motor Corp. (NYSE:TM) will revamp its U.S. manufacturing operations as rising gasoline prices lead to a sudden shift toward fuel-efficient models — a big change from just a few years ago when gas-guzzling sport-utility vehicles ruled the marketplace.

Gas Prices Spur Drivers to Cut Use to Five-Year Low
As average gas prices hit a record high of $4.108 a gallon this week, the government released new data showing that drivers have cut back their use of the fuel to levels not seen in five years.

Lloyds TSB to Drop Dresdner, Postbank Merger Talks, People Say
July 10 (Bloomberg) — Lloyds TSB Group Plc, (NYSE:LYG) Britain’s largest provider of checking accounts, plans to abandon talks aimed at a possible takeover of Allianz SE’s (NYSE:az) Dresdner Bank or Deutsche Postbank AG , (FRA:DPB) two people familiar with the matter said.

China’s Aluminum Producers Agree to Cut Output by 10%
July 10 (Bloomberg) — China’s biggest aluminum producers, the largest in the world, agreed to cut output by as much as 10 percent to ease a power shortage, sending metal prices to a record.

U.S. Initial Jobless Claims Fall 58,000 to 346,000 Last Week
July 10 (Bloomberg) — The number of Americans filing first- time claims for unemployment benefits declined more than forecast last week, a drop that was distorted by seasonal adjustments of the statistics to account for annual July shutdowns at auto plants.

Regional Banks: It’s All About Credit
The slumping housing market and lingering credit crunch have pummeled financial stocks over the past year to lows not seen in almost two decades. Last year, banks were feeling the pinch from writedowns related to securities backed by mortgages and unsold leveraged loans. This year, banks are getting socked in the stomach as a consumer-led recession results in the rapid deterioration in credit beyond just residential mortgages to creep into other consumer and commercial-related loans, such as credit cards and residential construction loans.

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