Wall Street Rumors - May 13, 2008

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H-P Agrees to Buy EDS, In Challenge to Rival IBM
Hewlett-Packard Co. (NYSE:HPQ), said it agreed to pay about $13.25 billion, or $25 a share, in cash to buy Electronic Data Systems Corp., NYSE:EDS), setting the stage for a challenge to IBM’s, [NYSE:IBM), dominance in computer consulting and services.

Brazil Joins New Economic Powers
Brazil seemed out of its league when compared to dynamic emerging economies of Russia, India and China. But without great fanfare, Brazil’s economy has turned a big corner. Already a power in agriculture and natural resources, it has added an elusive ingredient: a currency with staying power.

Nissan Offers Bleak Forecast; Outlines New Business Plan
Nissan Motor Co. (NASDAQ:NSANY) reported a leap in fiscal fourth-quarter net profit but forecast it’s biggest drop in earnings in nine years, as a perfect storm of rising material costs, a stronger yen and U.S. slowdown batter car makers’ earnings.

Carlyle to Invest in China Province
Carlyle Group’s latest investment in China doesn’t involve writing a check. Instead, the Washington private-equity firm is investing in a relationship with a local government that it hopes will turn into a pipeline of deals.

Bernanke Says Fed to Boost Loans to Banks as Needed
Federal Reserve Chairman Ben S. Bernanke said financial markets remain unsettled and the central bank will increase its auctions of cash to banks as needed.

U.S. Stocks Fall, Led by Banks; JPMorgan, Hewlett-Packard Drop
U.S. stocks fell, led by banks, after Federal Reserve Chairman Ben S. Bernanke said financial companies may need to raise more capital, a report showed home prices tumbled and the outlook for securities firms’ profits worsened.

Australia Coal-Mine Floods Raise Costs of Cars, Planes, Washers
At about 1 a.m. on Jan. 19, some of the heaviest rains in a century caused the Nogoa River in Queensland to burst its banks, sending 32 billion gallons of water into one of the largest coal mines in Australia.
“It was like watching Niagara Falls,” said Peter Westerhuis, 46, general manager of operations for the mine’s owner, Ensham Resources Pty. “It filled the whole pit up in five hours.”

Wal-Mart Net Increases; Shares Fall on Forecast
Wal-Mart Stores Inc. (NYSE:WMT), the world’s largest retailer and a benchmark for the U.S. economy, reported higher quarterly profit and said earnings may trail analysts’ estimates after record gasoline prices buffeted consumers.

Shanghai Stock Market Falls After Quake
One day after a giant earthquake in south China, shares on the mainland fell nearly 2%, but markets elsewhere in Asia were unaffected as traders mulled the possibility that a months-long global financial crisis could be nearing an end.

Real Goods Solar Gets Chilly Reception
Real Goods Solar (NASDAQ:RSOL), is now a public company, and the markets have spoken: The freshman Nasdaq stock is looking more like So-So Solar.

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