Msn Money penny stocks

GEN2Media Corp (GTWO)

17 December 2009

Gen2Media Corporation (OTCBB: GTWO), Amazon.com, Inc. (NASDAQ: AMZN), CBS Corporation (NYSE: CBS) and American Express Co. (NYSE: AXP). Yesterday, Gen2Media Corporation (OTCBB: GTWO) issued a press release announcing that its Online Video Network is one of the fastest growing interactive networks already reaching 10 million viewers a month. Gen2Media is an innovative full service video technology and production company. The Gen2Media Online Video Network includes Read more...

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Primegen Energy Corp (PGNE)

17 December 2009

PrimeGen Energy Corporation (PINKSHEETS: PGNE), Chesapeake Energy Corporation (NYSE: CHK), Bank of America Corp. (NYSE: BAC) and Apollo Group, Inc. (NASDAQ: APOL). Yesterday after the markets closed, PrimeGen Energy Corporation (PINKSHEETS: PGNE) issued a press release announcing that the drilling of Rod 10-22 well has reached total target depth December 13, 2009. PrimeGen will be advised as to the commercial viability of the well and Read more...

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CAVU Resources Inc (CAVR)

17 December 2009

CAVU Resources, Inc. (PINKSHEETS: CAVR) announced today that the Company has recently mobilized its crew to complete the reworked of it gas production in Garfield County, Oklahoma. This recently acquired project is in a gas production region with proven reserves. The Company has been focused on assessing the top priorities on its 160 acre lease. Read more...

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Ecolocap Solutions Inc (ECOS)

17 December 2009

12/02/09 EcoloCap Solutions Inc. (OTCBB: ECOS), an innovator of alternative energy products, today announced that it will begin shipping M-Fuel and NPU machines to existing and potential distributors in several international markets. EcoloCap's M-Fuel, an advanced suspension fuel, and the NPU, its sophisticated fuel processing system, provide dramatically reduced emissions and extensive operating savings to industrial users of heavy oils.

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Facebook creates dual-class stock structure (AP)

24 November 2009

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided “as is” for informational purposes only, not intended for trading purposes or advice. Yahoo! is not an investment adviser and does not provide, endorse or review any information or data contained herein. See the rest here: Facebook creates dual-class stock structure (AP)

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Banks earn $2.8B in 3Q; FDIC says dangers persist (AP)

24 November 2009

WASHINGTON (AP) — The apparent end of the recession and stabilizing financial markets have not cured the banking industry, as souring and past-due loans have reached the highest levels in 26 years, the Federal Deposit Insurance Corp. said Tuesday. Banks earned $2.8 billion in the third quarter, but nearly 40 percent of that was from a one-time accounting trick. Loan balances plummeted and the fund that insures their deposits was $8.2 billion in the red. The number of banks on the FDIC’s “problem list” rose to 552 from 416 on June 30, the highest level in 16 years. Fifty banks failed during the quarter — the largest number since the second quarter of 1990. The FDIC’s fund that insures bank deposits fell by $18.6 billion, mostly because $21.7 billion was set aside for expected losses on future bank failures. The last similar deficit was in Dec. 1991, when a predecessor fund was more than $7 billion in the red. Separately, the Office of Thrift Supervision said Tuesday that thrifts eked out a $200 million profit in the third quarter. The agency called it “another break-even quarter,” after a small second-quarter profit was revised downward to a $94 million loss. Still, it was the first profitable quarter since the same period in 2007. The nominal profit was $1.3 billion, but $1.1 billion was a one-time gain at a single institution. The thrift’s holding company, which the OTS did not identify, shifted assets to reduce future tax expenses, agency officials said. The agency says the number of “problem thrifts” rose to 43 from 40 last quarter. Thrifts differ from banks in that they are required, by law, to have at least 65 percent of their lending in mortgages and other consumer loans. That makes them especially vulnerable to the housing downturn and unemployment. It also means they will play a key role in an eventual economic recovery. The FDIC voted this month to require banks to prepay three years of deposit insurance premiums by the end of next month to help replenish the dwindling deposit insurance fund, which is at its lowest point on record. That will raise about $45 billion. But bank failures this year through 2013 are expected to cost the fund $100 billion, so the prepayments won’t provide a long-term fix for the insurance fund. It does spare ailing banks the immediate cost of paying a second emergency fee this year. Depositors’ money — insured up to $250,000 per account — is not at risk, since the FDIC has the option of tapping a credit line with the Treasury Department. “While bank and thrift earnings have improved, the effects of the recession continue to be reflected in their financial performance,” FDIC Chairman Sheila Bair said. A 2.8 percent drop-off in loans outstanding — the largest percentage decline on record — showed that credit for consumers and businesses remained tight, she said. “There is no question that credit availability is an important issue for the economic recovery,” Bair said. “We need to see banks making more loans to their business customers.” That’s especially important for small businesses which get more than 60 percent of their credit from banks the FDIC insures, she said. Bank profits returned in the third quarter after a $4.3 billion loss in the previous quarter and $879 million in earnings last year. But analysts warned not to read much into the better earnings. “A few very large banks are making a pile of money, and the rest of the industry is hurting,” said Daniel Alpert, managing director of the New York investment bank Westwood Capital LLC. The largest Wall Street firms are benefiting from a host of government subsidies — such as capital injections, asset guarantees, low-cost borrowing — that cost taxpayers without improving the economy, Alpert said. “We’re creating riskless profits for the big banks,” he said. Still, banking analyst Bert Ely said the Federal Reserve’s low-interest rate policy is helping the whole industry. Net interest margin — the difference between what it costs banks to borrow and what they pay to depositors — reached a four-year high. It was a rare bright spot in the FDIC report. That bright spot comes at the expense of consumers, who are earning historically low interest rates on their deposits. “Americans are getting nothing in terms of interest on their savings so that the banks can make money,” Alpert said. High unemployment and slow spending are making it harder for banks to collect from consumers. Loans 90 or more days past due reached 4.9 percent — the highest in 26 years. Banks gave up on collecting $50.8 billion in loans during the quarter, an 80.5 percent increase from a year ago. It was the 11th straight quarterly increase and — at 2.7 percent — another 26-year high. OTS Acting Director John Bowman cast a cautious tone, saying thrift profits were hurt by money being set aside as they prepare for more loan losses. “We know that we have not seen the last thrift failure of this crisis,” Bowman said. Some smaller banks have protested the early insurance assessments that are being charged to replenish the deposit insurance fund. They complain that they had nothing to do with the excesses of big Wall Street banks, reckless mortgage lending and risky investments that precipitated the financial crisis, but are being forced to pay to help clean up the mess. There have been 124 bank failures so far this year, the most since 1992 at the height of the savings-and-loan crisis. They have cost the federal deposit insurance fund more than $28 billion. There were 25 bank failures last year and three in 2007. Bair said “there are no quick fixes” for the banking industry’s troubles — “only careful, hard work” to oversee banks as they continue writing off bad loans and attempt to ride out the downturn. “It really is all about the economy at this point,” she said. Read the r est here: Banks earn $2.8B in 3Q; FDIC says dangers persist (AP)

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SPIN METER: ‘War and Peace’ in 209 pages? (AP)

24 November 2009

WASHINGTON (AP) — Republicans are using everything short of forklifts to show Americans that Democratic health care legislation is an unwieldy mountain of paper. They pile it high on desks, hoist it on a shoulder trussed in sturdy rope and tell people it’s longer than “War and Peace,” which it isn’t. AP – FILE – In this Nov. 5, 2009, file photo Rep. Steve King, R-Iowa, holds a copy of the … Although they complain they don’t have time to read all of it, they found the time to tape it together, page by page, so they could roll it up the steps of the Capitol like super-sized toilet paper and show how very long it is. Size matters in the health care debate because Republicans have turned the length of the legislation into a symbol: Big, unwieldy bill means big, overreaching government. Even bigger when you display double-spaced copies with double-wide margins and large print — then pile copies of the House and Senate bills together so that the cameras see something monstrously tall. Lawmakers routinely debate massive legislation without absorbing every word. They employ people to find what matters to them. Indeed, legislation of comparable size was used to redefine an area of much more limited federal responsibility, education. That was the No Child Left Behind Act from the agenda of Republican President George W. Bush. The nation’s health care system accounts for one-sixth of the economy and no one really expects brevity when reinventing something so complex. No one really expects the Republicans’ theatrical legislation inflation to stop, either. Five Republican senators displayed the massive legislation on their desks during the weekend vote to bring the Senate health bill to full debate, as GOP lawmakers have been doing since the House bill came out earlier. As if he risked a hernia carrying it any other way, Republican Rep. Steve King of Iowa was seen carrying the House Democratic bill on his shoulder, all roped together. GOP Rep. John Culberson of Texas brought a copy to a Capitol Hill rally and threw its loose pages to the crowd, like meat to lions. The actual Senate bill, which Majority Leader Harry Reid introduced last week, came in at 2,074 double-spaced pages, 84 more pages than the House version, which was already being ridiculed for its size. “That’s larger than the novel ‘War and Peace,’” Republican Sen. Orrin Hatch of Utah said of the Senate bill. “Exceeding even ‘War and Peace’ in length,” Rep. Roy Blunt, R-Mo., said of the House bill. Said Rep. Joe Barton, R-Texas: “‘War and Peace’ — some people consider it the greatest book ever written, but most people recognize the novel because at 1,284 pages its length is often the butt of jokes. Now imagine trying to read something that long overnight.” Actually, Leo Tolstoy’s tome is longer than either bill. Full translated versions are nearly twice as long. The bill passed by the House is 319,145 words. The Senate bill is 318,512 words, shorter than the House version despite consuming more paper. Various versions of Tolstoy’s novel are 560,000 to 670,000 words. Bush’s education act tallied more than 280,000 words. By now, the full draft of Reid’s bill that had circulated in the corridors and landed so prominently on Republican desks has been published in the Congressional Record in the official and conventional manner. The type is small and tight. No hernias will be caused by moving this rendering of the bill around. Unfurling it on the Capitol steps would not be much of a spectacle. It’s 209 pages. Associated Press writer Ann Sanner contributed to this report. Originally posted here: SPIN METER: ‘War and Peace’ in 209 pages? (AP)

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Fed: super-low rates could fuel speculative bubble (AP)

24 November 2009

WASHINGTON (AP) — The Federal Reserve doesn’t expect the recovery will be strong enough to quickly drive down the jobless rate, and acknowledged its efforts to keep the rebound going could feed a new speculative bubble. AP – FILE – In this May 24, 2008 file photo, the headquarters of the Federal Reserve Bank is seen … Record-low interest rates “could lead to excessive risk-taking in financial markets,” according to documents released Tuesday of the Fed’s closed-door meeting earlier this month. It also could cause consumers, investors and businesses to worry about inflation taking off. Although Fed officials saw the current likelihood of that as “relatively low,” they pledged to “remain alert to these risks.” At the Nov. 3-4 meeting, Fed Chairman Ben Bernanke and his colleagues kept the target range for its bank lending rate at zero to 0.25 percent. Fed policymakers also pledged to hold rates at such super-low levels for an “extended period,” to ensure the recovery gains traction. Most analysts predict that means rates will stay where they are through the rest of this year and into part of 2010. On the economy, the Fed expects the unfolding recovery will be gradual, as modest growth keeps the nation’s unemployment rate elevated over the next several years. Most Fed policymakers said it could take “five or six years” for the economy and the labor market to be consistently healthy. High unemployment, slow income growth and hard-to-get credit will weigh on consumer spending “for some time to come,” the Fed said. Troubles in the commercial real-estate market also will restrain the recovery, according to minutes of the November meeting. Fed officials expected the pace of the recovery “would be rather slow, relative to historical experience.” Recoveries after steep economic downturns are usually robust, the Fed said. In updated economic projections, the Fed said the economy’s contraction for all of this year won’t be as deep as it thought in a forecast released in the summer. That’s because the second half of this year is shaping up better than anticipated. Under a range of new projections, the economy will shrink 0.5 percent or be flat this year. The old forecast called for a contraction of anywhere from 0.6 to 1.6 percent. Growth next year should turn out slightly better than the Fed previously projected– ranging from 2 to 4 percent — up from 0.8 to 4 percent. But that won’t be enough to quickly drive down the unemployment rate, which now stands at 10.2 percent. It’s only the second time in the post-World War II period the rate has topped 10 percent. The central bank predicted the jobless rate could hover between 8.6 and 10.2 percent next year, based on a range of forecasts from Fed policymakers. It’s a tad better than its previous forecast, where the Fed said the jobless rate could rise as high as 10.6 percent. The postwar high was 10.8 percent at the end of 1982 when the country had suffered through a severe recession. Looking ahead to 2011, the Fed said the unemployment rate could drop to anywhere from 7.2 to 8.7 percent. That would still be considered well above normal, which is between 5 and 6 percent. “Most members projected that over the next couple of years, the unemployment rate would remain quite elevated,” according to the Fed minutes. Inflation, meanwhile, should stay under control, the Fed said. Prices this year should increase between 1 and 1.7 percent, and rise a bit higher next year. The new projections were little changed from the old forecast. The new projections buttressed economists’ beliefs that Fed policymakers won’t be in any rush to boost rates. “So long as unemployment remains high and inflation expectations subdued, the Fed has little desire to lift rates,” said Sal Guatieri, economist at BMO Capital Markets. “Since the November meeting, Fed speakers have turned decidedly dovish” likely because unemployment spiked to 10.2 percent just days after that gathering. View original post here: Fed: super-low rates could fuel speculative bubble (AP)

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US gold ends up on options-related buying, funds (at Reuters)

24 November 2009

NEW YORK, Nov 24 (Reuters) - U.S. gold futures ended higher in very heavy trade Tuesday, driven by option-related buying and fund interest, and investors continued see pullbacks in the metal as buying opportunities, traders said. For the latest detailed report, click on [GOL/]. GOLD * COMEX December gold GCZ9 settles up $1.10 at $1,165.80 an ounce on the NYMEX. * Ranged from $1,157.70 to $1,171.70. December hit an all-time high $1,174 on Monday. * Gold futures supported by options-related buying after Monday's option expiration - George Gero at RBC. * Bullion holds gains in spite of a slight dollar rise amid an equities market retreat. * Gold market sees drops as opportunities to buy absent a major correction - Miguel Perez-Santalla at Heraeus. * Ethiopia signed a deal for a Saudi firm to extract an estimated 20 tonnes of recoverable gold found in the Horn of African country last month. [ID:nGEE5AN1WS] * Gold-to-oil ratio above 15. It was last at 15.34, up from the previous session's 15, as oil drops 2 percent. * COMEX estimated final volume at a very busy 323,712 lots, driven by options-related buying. * Spot gold XAU= at $1,167.50 an ounce at 3:23 p.m. EST (2023 GMT), compared with $1,165.85 late in the previous session in New York. * London's afternoon gold fix XAUFIX= at $1,163.25 an ounce. * For a gold price interactive graphic: here > SILVER * December silver SIZ9 ends down 15.5 cents at $18.455 an ounce, as investors lock in profits. * Technical resistance seen at breaking above the $19 an ounce level - traders * Ranged from $18.330 to $18.680. * COMEX estimated final volume at a heavy 78,379 lots, partially due to December option expiration on Monday. * Spot silver XAG= was at $18.52, against $18.59 in the previous session in New York. * London silver fix XAGFIX= at $18.57. PLATINUM * January platinum PLF0 finishes down $23.80, or 1.6 percent, at $1,443.80 an ounce as the market takes a breather after Monday's rally. * Spot platinum XPT= $1,446.50 an ounce. PALLADIUM * December palladium PAZ9 closes down $4.05, or 1.1 percent, at $369.25 an ounce on platinum's weakness. * Spot palladium XPD= $369.75 an ounce. Close Change Pct 2008 YTD Chg Close % Chg US gold GCZ9 1165.80 1.1 0.1 884.3 31.8 US silver SIZ9 18.455 -0.155 -0.8 11.295 63.4 US platinum PLF0 1443.80 -23.80 -1.6 941.50 53.4 US palladium PAZ9 369.25 -4.05 -1.1 188.70 95.7 Prices at 3:21 p.m. EST (2021 GMT) Gold XAU= 1167.00 1.15 0.1 878.20 32.9 Silver XAG= 18.50 -0.09 -0.5 11.30 63.7 Platinum XPT= 1443.50 -11.00 -0.8 924.50 56.1 Palladium XPD= 369.75 0.750 0.2 184.50 100.4 Gold Fix XAUFIX= 1163.25 -7.00 -0.6 836.50 39.1 Silver Fix XAGFIX= 18.57 -19.00 -1.0 14.76 25.8 Platinum Fix XPTFIX= 1458.00 5.00 0.3 1529 -4.6 Palladium FixXPDFIX= 371.00 0.50 0.1 365.0 1.6 (Reporting by Frank Tang ; Editing by Lisa Shumaker) ((frank.tang@thomsonreuters.com; +1 646 223 6126; Reuters Messaging: frank.tang.reuters.com@reuters.net)) ((For help: Click "Contact Us" in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546)) © Thomson Reuters 2009 All rights reserved Originally posted here: US gold ends up on options-related buying, funds (at Reuters)

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UPDATE – Fed confident on U.S. growth, leery of policy risks (at Reuters)

24 November 2009

(Adds details, background) By Pedro da Costa and Mark Felsenthal WASHINGTON, Nov 24 (Reuters) – Federal Reserve officials are increasingly confident the U.S. economic recovery is sustainable, but they do not see employment picking up soon, according to minutes from their November meeting released on Tuesday. Policymakers also expressed concern about possible adverse repercussions from their vow to keep interest rates low for an extended period, including unwanted speculation in financial markets. “Members noted the possibility that some negative side effects might result from the maintenance of very low short-term interest rates,” the central bank reported in the minutes. Some investors and policymakers have argued that the Fed’s policy of rock-bottom borrowing costs may be driving investors to beef up their bets by using the falling dollar to fund their trades. President Barack Obama, during a recent visit to Asia, was lectured on the subject by top government officials in China. The Federal Reserve Open Market Committee, the U.S. central bank’s policy-setting body, did not believe such speculative activity had taken place to date, contending that the dollar’s decline had thus far been “orderly.” “Any tendency for dollar depreciation to intensify or to put significant upward pressure on inflation would bear close watching,” the minutes said. The U.S. currency dropped to a 15-month low against a basket of major currencies last week. NO INFLATION HERE For now, the minutes indicated policymakers are not widely concerned about inflation in the medium term. This was already evident from a string of recent speeches in which even the hawkish regional presidents of the Dallas and Philadelphia Feds have expressed dovish views on the prospects for a sustained rise in consumer prices. The “central tendency” forecasts of policymakers were slightly more sanguine on the economy’s prospects but not dramatically so. Gross domestic product was expected to shrink substantially less this year than previously estimated. Similarly, the jobless rate, currently at a 26-year high of 10.2 percent, was now expected to come down more quickly than policymakers believed back in June. “Most participants now view the risks to their growth forecasts as being roughly balanced rather than tilted to the downside,” the minutes said. Nonetheless, there was a sense that any turnaround in the labor market would not happen quickly enough to stem the rising tide of joblessness. “The weakness in labor market conditions remained an important concern,” the minutes said. “The considerable decelerations in wages and unit labor costs this year were cited as factors putting downward pressure on inflation.”  Continued… Visit link: UPDATE – Fed confident on U.S. growth, leery of policy risks (at Reuters)

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SBA’s Disaster Assistance Deadline for Physical Damage Is December 28 (Business Wire)

24 November 2009

ATLANTA–(BUSINESS WIRE)–The U.S. Small Business Administration reminds homeowners, renters, businesses and non-profit organizations of the deadline to submit disaster loan applications for physical damage caused by a tornado and severe storms that occurred on October 9, 2009 in Kentucky. The deadline to file an application for physical damage is December 28, 2009 . Homeowners, renters, non-profit organizations and businesses of all sizes in Casey County and the adjacent counties of Adair, Boyle, Lincoln, Marion, Pulaski, Russell and Taylor in Kentucky are eligible to apply for physical disaster assistance. The SBA offers loans up to $200,000 to repair disaster damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture, appliances and clothing. Loans to businesses and non-profit organizations of all sizes are available up to $2 million to repair or replace damage to real estate, machinery, inventory and equipment. SBA Economic Injury Disaster Loans (EIDLs) are available to small businesses and most private non-profit organizations of all sizes to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage. Interest rates are as low as 2.750 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition. The SBA also offers mitigation funds to disaster victims up to 20 percent of the verified physical damage. These funds are designed to help borrowers pay for protective measures which may prevent damages of the same kind in the future. To obtain program information or a loan application, call the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. until 9 p.m. EST or by sending an e-mail to disastercustomerservice@sba.gov . Business loan applications can also be downloaded from the SBA Web site at www.sba.gov/services/disaster assistance . Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. Those affected by the disaster may apply for disaster loans from SBA’s secure Web site at https://disasterloan.sba.gov/ela/ . The filing deadline to return applications for physical damage is December 28, 2009 . The deadline to return economic injury applications is July 29, 2010 . For more information about the SBA’s Disaster Loan Programs, visit our Web site at www.sba.gov/services/disasterassistance . Release Number: 10-092, KY 11922/11923 Original post: SBA’s Disaster Assistance Deadline for Physical Damage Is December 28 (Business Wire)

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Stocks flat as Fed eyes stronger 2010 (Reuters)

24 November 2009

By Rodrigo Campos Reuters – Phones hang from a trading terminal on the floor of the New York Stock Exchange, May 19, 2009. … {”s” : “dell,hpq”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} NEW YORK (Reuters) – U.S. stocks were mostly flat in low volume on Tuesday as the Federal Reserve lifted its growth estimates for 2010, offsetting data that showed the economy grew at a slower-than-expected pace in the third quarter. Revised government data showed gross domestic product expanded for the first quarter in five, but the increase was just below expectations, and investors scrambled to justify additional stock gains after a 22 percent rise in the S&P 500 so far this year. The downbeat news was offset partially after the Fed revised upward its growth expectation for 2010, while minutes of the last FOMC meeting showed officials are increasingly confident about a durable recovery for the U.S. economy. “You’re getting the cross-current of weak revisions to third-quarter data matrixed against the Fed increasing the growth estimates for the economy for the next year,” said Jim Awad, managing director at Zephyr Management in New York. “But the action in the market is moderate going into the holiday weekend and I wouldn’t read too much into it.” The U.S. stock market will be closed on Thursday in observance of Thanksgiving Day. And on Friday, it will be open for only half a day due to the holiday. The Dow Jones industrial average (DJI: ^DJI – News ) slipped 13.53 points, or 0.13 percent, to 10,437.42. The Standard & Poor’s 500 Index ( ^SPX – News ) dipped 0.18 of a point, or 0.02 percent, to 1,106.06. The Nasdaq Composite Index (Nasdaq: ^IXIC – News ) dropped 6.69 points, or 0.31 percent, to 2,169.32. Hewlett-Packard Co (NYSE: HPQ – News ) fell 1.5 percent to $50.26 a day after the blue-chip computer and printer maker reported a quarterly profit that matched its preliminary results, but said the economy remained challenging. HP also said it saw growth in its share of U.S. enterprise PCs, which is rival Dell Corp’s (NasdaqGS: DELL – News ) key market. Dell’s stock fell 3.2 percent to $14.32 and ranked as a top drag on the Nasdaq. Financial stocks showed weakness throughout the session, with JPMorgan Chase & Co (NYSE: JPM – News ), down 2 percent at $42.43, leading the major decliners in the Dow industrials. The KBW bank index (Philadelphia: ^BKX – News ) fell 0.7 percent. Zephyr Management’s Awad said there is concern about banks’ capital after news that the Fed asked lenders that were part of its “stress tests” to submit plans to repay government money. U.S. home prices rose in September, according to the Standard & Poor’s/Case-Shiller index, but the increase was less robust than forecast. Home prices for that month were unchanged, according to a separate report from the U.S. Federal Housing Finance Agency. The Dow Jones U.S. Home Construction Index (DJI: ^DJUSHB – News ) fell 1.7 percent. (Reporting by Rodrigo Campos; Editing by Jan Paschal) Link: Stocks flat as Fed eyes stronger 2010 (Reuters)

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UPDATE – New Brazil c.bank director favors independent bank (at Reuters)

24 November 2009

* Newly appointed director in favor of independent c.bank * Mendes says forex rate should be set by financial market * Mendes shuns calls for capital controls in Brazil (Recasts, adds full senate vote) BRASILIA, Nov 24 (Reuters) – Brazil’s newly appointed central bank director of monetary policy said on Tuesday he was in favor of formal central bank independence from the government. Aldo Mendes also told a senate commission he was against capital controls and said the ideal level for the exchange rate should be set by financial markets. Mendes’ appointment was approved by the senate’s economic affairs commission earlier on Tuesday and passed a full senate floor vote by a 41-11 margin. Some analysts and investors have said formal independence would ease concerns of political meddling in the central bank, even as Brazilian policymakers effectively implement rules without government interference. “Part of the success of the economic policy today is due to the operational autonomy … the de facto autonomy that exists today,” Mendes said in testimony to the senate commission. “In relation to formal central bank autonomy, I am in favor of that, in conceptual terms, but the debate is much larger.” Mendes, a 51-year-old former executive of state-controlled bank Banco do Brasil ( BBAS3.SA ), was nominated last week to replace Mario Toros, who stepped down for personal reasons. His experience as a career employee at a public bank raised concerns he would have a more dovish stance on interest rates, but his comments helped ease some of those fears. “This was just a confirmation that Mendes is neutral on the monetary policy outlook, which is good for the market,” said Pedro Tuesta, an economist at research firm 4Cast Inc in Washington. When asked if he agreed with Finance Minister Guido Mantega that the ideal rate for the real ( BRBY ) was close to 2.6 per dollar, Mendes told a senate commission the “ideal rate comes from demand and supply” and should be fixed by the market. Mantega has said the central bank has room to implement more measures to ease gains in the real, which has surged more than 30 percent against the dollar so far in 2009, echoing calls from business leaders and exporters. Mendes added that foreign investments are “very welcome” in Brazil and putting rules to artificially keep overseas funds in the country for a long time would send the wrong signal. Some politicians and academics have called for measures to restrict short-term foreign investments into the country, while also putting a ‘quarantine’ on them to force funds to stay in Brazil, in a bid to ease volatility in currency markets. “I don’t believe this would be a good policy,” Mendes said. “We would be imposing barriers. Foreign capital is very much welcome to our country.” The senate commission voted 23-2 in favor of Mendes’ appointment, with one abstention. (Reporting by Isabel Versiani and Natuza Nery; Writing by Elzio Barreto; Editing by James Dalgleish) ((elzio.barreto@thomsonreuters.com; Tel: +55 11 5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net)) Originally posted here: UPDATE – New Brazil c.bank director favors independent bank (at Reuters)

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Sprint completes purchase of Virgin Mobile USA (AP)

24 November 2009

KANSAS CITY, Mo. (AP) — Sprint Nextel Corp. on Tuesday said it had completed its $483 million acquisition of Virgin Mobile USA, boosting its presence in the market for customers who pay for cell phone service month-to-month. AP – FILE – In this Monday, Oct. 26, 2009 file photo, a sign hangs outside a Sprint store in … {”s” : “leap,pcs,s”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} Virgin Mobile shareholders earlier Tuesday voted in favor of the acquisition, which was announced in July and pays them $5.50 in Sprint stock for each Virgin Mobile share. The deal also includes retiring Virgin Mobile’s debt. Sprint Nextel already owned 13.1 percent of Virgin Mobile, which uses Sprint’s network to offer service and has 5.2 million subscribers. Like other so-called “prepaid” vendors, Virgin Mobile primarily appeals to customers who lack the credit or income to qualify for long-term contracts or simply want a bargain over contract-based plans. The market for these customers has expanded as the economy has forced more traditional wireless customers to search for cheaper plans. Sprint, which is based in Overland Park, Kan., ignited a mini-price war in January when it introduced a $50-per-month prepaid unlimited plan under its Boost Mobile brand. It’s unclear how Virgin and Boost will coexist under Sprint, although they have been geared toward different markets — Virgin aimed at teens and 20-somethings while Boost is considered a value brand. The company said customers of both brands won’t see any immediate changes. Other competitors in the prepaid space include No. 4 carrier T-Mobile USA and smaller upstarts like MetroPCS Communications Inc. and Leap Wireless International Inc., which sells under the Cricket brand. Prepaid carriers are expected to have the most growth potential as most people who want wireless service in the U.S. and are eligible for a contracts have a phone already. Virgin Mobile shareholders, which include British billionaire Richard Branson’s Virgin Group and South Korean carrier SK Telecom, will own about 3 percent of Sprint. Sprint shares were down 12 cents, or 3 percent, to $3.78 in afternoon trading Tuesday. See the original post here: Sprint completes purchase of Virgin Mobile USA (AP)

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Bank of England reveals huge secret loans to RBS, HBOS

24 November 2009

LONDON (AFP) – The Bank of England admitted Tuesday it lent a total of 61.6 billion pounds to Royal Bank of Scotland and HBOS in secret during last year’s financial crisis, adding that the cash had been repaid. The British central bank revealed the loans, equivalent to 68 billion euros or 102 billion dollars, in a statement to coincide with governor Mervyn King’s appearance before a Treasury Select Committee hearing. The BoE said that in autumn 2008 it had offered emergency lending to Royal Bank of Scotland (RBS) and HBOS bank, which is now part of Lloyds Banking Group (LBG). The bank said the loans could now be revealed because it judged that there was no longer a risk of a “potentially systemic disturbance” to the financial system. “Now that RBS has signed up for the asset protection scheme and Lloyds has embarked on its alternative strategy for capital raising, the bank judges that there is no longer a need for the assistance to remain secret,” the BoE said. RBS borrowed a maximum of 36.6 billion pounds on October 17, 2008, and HBOS borrowed a maximum of 25.4 billion pounds on November 13, 2008. The groups repaid the cash in December and January respectively. Junior finance minister Paul Myners defended the move, and declined to say if other secret loans had been made to banks. “This is precisely what a central bank does in terms of providing lender of last resort facilities to support the banking system,” he told Channel 4. “The future of the banks matters to parliament and parliament recognises that the Bank of England occasionally needs to act covertly and has given the Bank of England the legal power to do that.” Struggling HBOS was bought by rival Lloyds TSB in a government-brokered deal that created Lloyds Banking Group earlier this year. However, LBG fell under state control as a result of the global financial crisis and is now 43-percent owned by the taxpayer. Royal Bank of Scotland was also ravaged by the credit crunch and the takeover of Dutch giant ABN Amro at the top of the market in 2007. The state now owns 84 percent of RBS after an enormous bailout. Another British bank, Northern Rock, was nationalised in February 2008 after it ran into severe funding problems because of the global credit crunch. Read more: Bank of England reveals huge secret loans to RBS, HBOS

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Swedish firm gives up bid for Saab

24 November 2009

STOCKHOLM (AFP) – Swedish luxury carmaker Koenigsegg said Tuesday it was giving up its bid to buy Saab Automobile from its US parent General Motors due to costly delays, plunging Saab’s future into doubt. “We regret that after six months of intense and goal-oriented work we have come to the painful and difficult conclusion that we are not going to be able to carry out the acquisition of Saab Automobile,” the head of the company, Christian von Koenigsegg, said in a statement. Koenigsegg announced in September that it had teamed up with Beijing Automotive Industry Holding Co Ltd (BAIC) to buy Saab from GM. But it still needed a 400-million-euro (600-million-dollar) loan from the European Investment Bank and wanted the Swedish government to act as a guarantor. Swedish media have suggested that Saab was running short of money to continue its day-to-day operations, and doubts have flourished among experts about whether Koenigsegg would have the expertise to run a major car company. Koenigsegg Group, founded in 1994, has just 45 employees and produces 18 high-end sports cars a year at more than one million euros (1.4 million dollars) each. Saab, by contrast, employs 3,400 people in Sweden alone and sold just over 93,000 cars worldwide in 2008. Koenigsegg initially announced its plan to acquire Saab in June, and the deal was originally expected to be concluded by the end of October but has been repeatedly delayed. The Swedish government, which has refused to take a stake in the struggling carmaker, as of Tuesday had still not decided whether to act as guarantor for the EIB loan. “The time factor has from the beginning been critical for our strategy to breathe new life into the company,” von Koenigsegg said in the statement. “Unfortunately, delays in completing the deal have led to risks and uncertainties that prevent us from successfully carrying out our business plan for Saab Automobile.” In an interview with Swedish news agency TT, he stopped short of blaming the government for the delay. “I don’t want to point the finger. It’s an incredibly complicated process,” he said. “We had a business plan but when Saab is bleeding and can’t grow as long as we’re waiting (for a decision), the economic implications and outcome of our business plan become too unclear,” he said. GM’s chief executive Fritz Henderson said the company was “disappointed” by Koenigsegg’s decision. “Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week,” he said. GM recovery hits road bump with Saab sale terminated Saab spokesman Eric Geers told AFP that Koenigsegg’s decision came as “a surprise.” “We’ll see what happens now. It’s up to GM,” Geers said. The head of the influential IF Metall union at Saab, Paul Aakerlund, was dismayed by the news. “This is a heavy time for all of us,” he said. Under GM’s stewardship spanning almost two decades, Saab rarely posted a profit and last year lost 3.0 billion kronor (241 million euros, 341 million dollars at the time). While some 3,400 people are employed at Saab’s factory in Trollhaettan, a town of 55,000 in southwestern Sweden, another 12,000 work for suppliers or subcontractors that directly rely on the automaker for their income. David Cole, chairman of the Center for Automotive Research in the US state of Michigan, said Tuesday’s announcement was “not that big a deal” for GM, suggesting it may find another buyer for Saab given how many cash-rich Chinese companies are jockeying for a position in the global auto industry. GM could also decide to hold on to Saab, as it did with German carmaker Opel, to further strengthen its European position, or shut it down. Rebecca Lindland, director of automotive research at consultants IHS Global Insight, said however that it was unlikely GM will hold onto Saab and finding another buyer might be difficult. “We’re hearing rumours of a wind-down which would be dreadful,” Lindland told AFP. “You have these really iconic names that are just dropping off.” Read the original here: Swedish firm gives up bid for Saab

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Koenigsegg gives up bid for Saab

24 November 2009

STOCKHOLM (AFP) – Swedish luxury carmaker Koenigsegg said Tuesday it was giving up its bid to acquire Saab Automobile from its US parent company General Motors, saying costly delays made the deal too uncertain. The announcement plunged Saab’s future into doubt. “We regret that after six months of intense and goal-oriented work we have come to the painful and difficult conclusion that we are not going to be able to carry out the acquisition of Saab Automobile,” the head of the company, Christian von Koenigsegg, said in a statement. Koenigsegg announced in September that it had teamed up with Beijing Automotive Industry Holding Co Ltd (BAIC) to buy Saab from GM. But it still needed a 400-million-euro (600-million-dollar) loan from the European Investment Bank and wanted the Swedish government to act as a guarantor. Swedish media have suggested that Saab was running short of money to continue its day-to-day operations, and doubts have flourished among experts and commentators about whether Koenigsegg would have the necessary expertise to run a major car company. Koenigsegg Group, founded in 1994, has just 45 employees and produces 18 high-end sports cars a year at more than a million euros (1.4 million dollars) each. Saab, by contrast, employs 3,400 people in Sweden alone and sold just over 93,000 cars worldwide in 2008. Koenigsegg initially announced its plan to acquire Saab in June, and the deal was originally expected to be concluded by the end of October but has been repeatedly delayed. The Swedish government, which has refused to take a stake in the struggling carmaker, as of Tuesday had still not decided whether to act as guarantor for the EIB loan. “The time factor has from the beginning been critical for our strategy to breathe new life into the company. Unfortunately, delays in completing the deal have led to risks and uncertainties that prevent us from successfully carrying out our business plan for Saab Automobile,” von Koenigsegg said in the statement. In an interview with Swedish news agency TT, he stopped short of blaming the government for the delay. “I don’t want to point the finger. It’s an incredibly complicated process,” he said. “We had a business plan but when Saab is bleeding and can’t grow as long as we’re waiting (for a decision), the economic implications and outcome of our business plan become too unclear,” he said. GM said it was “disappointed” by Koenigsegg’s decision. “We’re obviously very disappointed with the decision to pull out of the Saab purchase,” GM President and CEO Fritz Henderson said. “Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.” Saab spokesman Eric Geers meanwhile told AFP Koenigsegg’s decision came as “a surprise.” “We’ll see what happens now. It’s up to GM,” Geers said. The head of the influential IF Metall union at Saab, Paul Aakerlund, was dismayed by the news. “This is a heavy time for all of us,” he said. Under GM’s stewardship spanning almost two decades, Saab rarely posted a profit and last year lost 3.0 billion kronor (241 million euros, 341 million dollars at the time). While some 3,400 people are employed at Saab’s factory in Trollhaettan, a town of 55,000 in southwestern Sweden, another 12,000 work for suppliers or subcontractors that directly rely on the automaker for their income. David Cole, chairman of the Center for Automotive Research in the US state of Michigan, said Tuesday’s announcement was “not that big a deal” for GM, suggesting it may find another buyer for Saab given how many cash-rich Chinese companies are jockeying for a position in the global auto industry. A Chinese carmaker, Geely, is currently trying to buy Sweden’s other carmaker, Volvo Cars, from its US parent company Ford. Purchasing a relatively “cheap” European carmaker like Saab would provide both a foothold in key markets and the technology needed to compete, Cole said. GM could also decide to hold on to Saab, as it did with German carmaker Opel, to further strengthen its European position, or shut it down, a view shared by a number of Swedish car industry analysts. Read more from the original source: Koenigsegg gives up bid for Saab

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Brocade CEO says company not for sale, shares drop (AP)

24 November 2009

PHILADELPHIA (AP) — Shares of Brocade Communications Systems Inc. fell Tuesday after the company denied speculation that it’s looking for a buyer. “That’s just wrong. Why would we want to go ahead and do that when we have never been in a better position than we are today?” CEO Mike Klayko said in a corporate video on fourth quarter results. He said Brocade has taken the trouble to provide a full suite of products and services to compete with larger competitors and it’s “winning.” Shares of Brocade fell 71 cents, or 9.1 percent, to $7.09 in afternoon trading on heavy volume. “Brocade’s stock is under a little bit of pressure since investors hoping for an acquisition are exiting the stock,” said Wedbush Morgan analyst Kaushik Roy in a research note. Late Monday, the networking equipment maker also warned that the first quarter won’t be as strong as the same quarter in past years and an overall rebound isn’t expected until the back end of fiscal 2010. First-quarter revenue should be up 4 to 5 percent from the fourth quarter instead of the typical seasonal increase of 6 to 8 percent. The second and third quarter revenue could see no increase to some lift, and a strong fourth quarter is expected. Brocade reported fourth-quarter earnings of $33.6 million, or 7 cents per share, compared with $35.6 million, or 9 cents per share, a year ago. Excluding one-time items, earnings would have been 15 cents per share, beating the expectations of analysts surveyed by Thomson Reuters. Revenue rose 31 percent to $521.8 million on strong growth in product sales helped by the company’s Foundry Networks acquisition, topping analysts’ $521.1 million estimate. Shares of Brocade, based in San Jose, Calif., fell 18 cents, or 2.3 percent, to $7.62 in premarket trading. Read the original here: Brocade CEO says company not for sale, shares drop (AP)

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Teck content with Suncor’s Fort Hills delay

24 November 2009

OTTAWA (Reuters) – Teck Resources Ltd is comfortable with Suncor Energy Inc’s decision not to fast track development at the planned Fort Hills oil sands project, Chief Executive Don Lindsay said on Tuesday. Lindsay told reporters that he still considers its 20 percent stake in the Fort Hills project to be a core holding for the mining company, though Suncor, the project’s operator, has put off making a development decision on the project for at least another year. “We are very supportive of Suncor’s decision,” Lindsay told reporters following a speech in Ottawa. The Fort Hills oil sands mine was delayed a year ago by Petro-Canada when costs skyrocketed. Suncor, which assumed a 60 percent Fort Hills stake when it bought Petro-Canada in August, said earlier this month that it did not yet know when it would resume work at the site, opting to complete work on other projects that had been halted during the economic crisis. The expected cost of the Fort Hills mine, once pegged at C$14 billion ($13.4 billion), has dropped sharply since the recession and falling oil prices forced most operators in the oil-rich region of northern Alberta to suspend construction on new projects, freeing up scarce labor and materials. UTS Energy Corp , which holds the remaining 20 percent stake in Fort Hills, said earlier this year that it may cost only C$8 billion to build a facility capable of producing 160,000 barrels per day, with further savings available if the size of the project was halved. Teck and UTS have also teamed up to acquire other leases in Alberta’s oil sands region, which contains more than 170 billion barrels of oil, the biggest reserves outside the Middle East. Earlier this month, UTS sold its half share in what it calls the Lease 421 area to Imperial Oil Ltd and Exxon Mobil Corp for C$250 million. However Teck, which is trying to cut a debt load that ballooned due largely to last year’s acquisition of coal producer Fording, plans to keep its stake in the property. “We think it’s an excellent lease and we’ll be hanging onto it,” Lindsay said. (Reporting Randall Palmer, writing by Scott Haggett; Editing by Jeffrey Hodgson) Read the original: Teck content with Suncor’s Fort Hills delay

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MONEY MARKETS-U.S. bill rates hold as demand stays strong (at Reuters)

24 November 2009

* US 1-month bill sale captures highest bidding in a month * Dollar 3-month Libor hits record low, euro rates rise * European traders wary of ECB's moves toward policy exit (Updates market action; dateline previously LONDON) By Richard Leong and Kirsten Donovan NEW YORK/LONDON, Nov 24 (Reuters) - The rates on most U.S. Treasury bills traded steady to slightly higher on Tuesday amid shrinking supply and intense year-end appetite for the ultra low-risk, cash-like investments. Investors snatched up $32 billion of one-month T-bills at a high rate of 0.06 percent, 1 basis point higher than last week's auction for this maturity. See [ID;nTAR000548] Bidding for the latest one-month supply was the strongest in a month. The bid-to-cover ratio came in at 4.38, higher than 3.79 last week but below 4.62 a month ago. USAUCTION7 Fund managers who reaped profits on a rebound on Wall Street and other risky assets this year have been socking their gains into T-bills in an effort to protect them, analysts said. "Many people who made money are shutting down and putting money into riskless assets," said Eric Lascelles, chief economics and rates strategist with TD Securities in Toronto. The tremendous bids for T-bills have occurred even at the expense of money market funds, which had traditionally been viewed as a safe haven to park cash until they were roiled by Lehman Brothers' collapse during last year's credit crisis. The Investment Company Institute reported money market fund assets fell $71.2 billion in October, following a $126.9 billion drop in September. For more, see [ID:nWAT013937] In the London interbank market, benchmark three-month dollar Libor rates USD3MFSR= edged to a record low of 0.26063 percent, only 1 basis point away from the top end of the Federal Reserve's current range on its policy rate. The U.S. central bank has signaled it will hold short-term rates near zero in a bid to foster an economic recovery. On Tuesday, it released minutes of its November policy meeting, which showed policy makers are increasingly confident in a durable U.S. recovery even though they do not see employment picking up soon. For more, see [ID:nWEQ003609] EURO RATES RISE Across the Atlantic, interbank lending rates for euros edged higher with central bank exit policy in focus after the European Central Bank last week took a first tentative step toward implementing tighter monetary conditions. Three-month euro Libor rates EUR3MFSR= were marginally higher at 0.67688 percent, while one-year rates EUR1YFSR= edged up to 1.22125 percent. See [ID:nGEE5AN142] One-year euro Libor rates EUR1YFSR= edged up again after posting their biggest daily rise on Monday since early June. The ECB said last Friday it would tighten its rating requirements for banks using asset-backed securities as security in its lending operations [ID:nLAG005930]. The announcement, which analysts said may signal the start of the central bank's exit policy, pushed six- and 12-month Eonia EUREON6M=EUREON1Y= rates higher and saw interest rate futures FEIM0FEIZ0 sell off, pushing up implied rates. "Everything the ECB has done so far has been in the guise of expansion, of getting liquidity into the market and widening the collateral base as much as possible," said ING rate strategist Padhraic Garvey in Amsterdam. "For the first time they've clawed some of that back so if you were to point to the beginning (of an exit), this would be it." Despite tougher collateral requirements, the ECB will offer long-term funds to banks, analysts said. It is expected to allot 125 billion euros in its one-year refinancing operation in December, roughly two-thirds more than the total banks took in September, according to a Reuters poll of traders released on Tuesday. For more, [ID:nGEE5AN1SJ] (Editing by Leslie Adler) ((richard.leong@thomsonreuters.com ; +1 646 223 6313; Reuters Messaging: richard.leong.reuters.com@reuters.net )) © Thomson Reuters 2009 All rights reserved The rest is here: MONEY MARKETS-U.S. bill rates hold as demand stays strong (at Reuters)

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UPDATE – U.S. and India agree on new economic partnership (at Reuters)

24 November 2009

(Adds more details from U.S Treasury) By Alister Bull WASHINGTON, Nov 24 (Reuters) – The United States and India will establish a new economic partnership which U.S. Treasury Secretary Timothy Geithner will help formally launch in India early next year, the White House said on Tuesday. The new partnership aims to strengthen economic ties between the two nations and echoes the strategic economic dialogue Washington established with China in 2006. U.S. President Barack Obama, hosting his first state visit since taking office in January, earlier met Indian Prime Minister Manmohan Singh and said that the world’s largest democracy would be a key source for U.S. growth. “India will play a pivotal role in meeting the major challenges we face today. And this includes my top economic priority: creating good jobs with good wages for the American people,” he told a joint White House press conference. The Treasury said the new partnership represented “a significant elevation” of the existing bilateral economic relationship between the two countries. “India is an emerging global power and a country with which the United States has an increasingly important economic and financial relationship,” Geithner said in a statement. Representatives will meet annually at cabinet level, alternately in the United States and India, with working groups getting together throughout the year to push ahead on specific economic policy areas. The Chinese-U.S. forum, created by Obama’s predecessor George W. Bush, gathers twice a year. The United States had a modest $3.2 billion trade deficit with India in the year to September, compared with its $165.8 billion trade gap with China. Singh echoed Obama’s hope the two countries could build a mutually beneficial economic relationship. He said the transfer of advance technology could open doors for U.S. investment into fast-growing Indian markets. “The lifting of U.S. export controls on high technology exports to India will open vast opportunities for giant research and development efforts,” said Singh, after Obama reaffirmed that he intended to fully implement a civil nuclear agreement between the two nations. “It will enable U.S. industry to benefit from the rapid economic and technological transformation that is now underway in our country,” Singh said. (Editing by Alan Elsner ) ((See also USA-ECONOMY/INDIA (FACTBOX) [nN24299011])) ((+1-202-354-5820, email: alister.bull@thomsonreuters.com)) Read this articl e: UPDATE – U.S. and India agree on new economic partnership (at Reuters)

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UPDATE 1-Teck content with Suncor’s Fort Hills delay

24 November 2009

* Says Fort Hills remains core holding * Will hang onto Lease 421 stake OTTAWA, Nov 24 (Reuters) – Teck Resources Ltd ( TCKb.TO ) is comfortable with Suncor Energy Inc’s ( SU.TO ) decision not to fast track development at the planned Fort Hills oil sands project, Chief Executive Don Lindsay said on Tuesday. Lindsay told reporters that he still considers its 20 percent stake in the Fort Hills project to be a core holding for the mining company, though Suncor, the project’s operator, has put off making a development decision on the project for at least another year. “We are very supportive of Suncor’s decision,” Lindsay told reporters following a speech in Ottawa. The Fort Hills oil sands mine was delayed a year ago by Petro-Canada when costs skyrocketed. Suncor, which assumed a 60 percent Fort Hills stake when it bought Petro-Canada in August, said earlier this month that it did not yet know when it would resume work at the site, opting to complete work on other projects that had been halted during the economic crisis. The expected cost of the Fort Hills mine, once pegged at C$14 billion ($13.4 billion), has dropped sharply since the recession and falling oil prices forced most operators in the oil-rich region of northern Alberta to suspend construction on new projects, freeing up scarce labor and materials. UTS Energy Corp ( UTS.TO ), which holds the remaining 20 percent stake in Fort Hills, said earlier this year that it may cost only C$8 billion to build a facility capable of producing 160,000 barrels per day, with further savings available if the size of the project was halved. Teck and UTS have also teamed up to acquire other leases in Alberta’s oil sands region, which contains more than 170 billion barrels of oil, the biggest reserves outside the Middle East. Earlier this month, UTS sold its half share in what it calls the Lease 421 area to Imperial Oil Ltd ( IMO.TO ) and Exxon Mobil Corp ( XOM.N ) for C$250 million. However Teck, which is trying to cut a debt load that ballooned due largely to last year’s acquisition of coal producer Fording, plans to keep its stake in the property. “We think it’s an excellent lease and we’ll be hanging onto it,” Lindsay said. (Reporting Randall Palmer, writing by Scott Haggett; Editing by Jeffrey Hodgson) ((scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622)) Here is the original post: UPDATE 1-Teck content with Suncor’s Fort Hills delay

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Tanzanian Royalty Announces $3.14 Million Financing For Evaluation Program at Kigosi Gold Project (Business Wire)

24 November 2009

SOUTH SURREY, British Columbia–(BUSINESS WIRE)–Tanzanian Royalty is pleased to announce a $3.14 million private placement comprising 1,155,835 shares through two European investment funds. Proceeds from the financing will be used to evaluate and develop the Company’s Kigosi Gold Project in the Lake Victoria Goldfields of Tanzania where significant quantities of near surface, gold-bearing gravels have been indicted in several phases of RC drilling. According to James E. Sinclair, Chairman and Chief Executive Officer, “Our immediate plans for 2010 include the bulk sampling of surface gravels at Kigosi, with a view to developing the property’s larger scale potential on a staged basis over the next few years.” “This is a time tested way of developing a gold project and in fact most of the world’s historic mining camps have been developed on this basis. It reduces risk to shareholders and preserves the value of the asset for investors,” he said. Budgets for equipment purchases have been approved and the Company’s in-house technical staff are completing the equipment selection process for the bulk sampling plant and delivery times to the Kigosi site. The private placement common shares are subject to certain mandated hold periods and the certificates representing such shares are legended accordingly. No warrants, options or other rights have been issued or granted in connection with the placement. The private placement is subject to regulatory approval. For further information, please contact Investor Relations at 1-800-811-3855 Visit our website: www.TanzanianRoyaltyExploration.com The Toronto Stock Exchange and NYSE Amex Equities have not reviewed and do not accept responsibility for the adequacy or accuracy of this release Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”, “probable”, “measured”, “indicated”, or “inferred” which may not be consistent with the reserve definitions established by the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 001-32500. You can review and obtain copies of these filings from the SEC’s website at http://www.sec.gov/edgar.shtml . Certain information presented in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Investors are referred to our description of the risk factors affecting the Company, as contained in our Form 20-F, File No. 001-32500, for more information concerning these risks, uncertainties, and other factors. Visit link: Tanzanian Royalty Announces $3.14 Million Financing For Evaluation Program at Kigosi Gold Project (Business Wire)

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Crude prices sink to $76 per barrel (AP)

24 November 2009

Oil prices fell to around $76 a barrel Tuesday with new data showing a slow U.S. economic recovery and consumer confidence that remains lukewarm at best. AP – FILE – In this Sept. 19, 2007 file photo, an oil pump is seen at dusk in Sakhir, … {”s” : “ung,uso”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} The dollar also gained against other major currencies, which can keep energy prices in check. Benchmark crude for December delivery fell $1.54 to settle at $76.02 a barrel on the New York Mercantile Exchange. The Commerce Department said the economy grew at a rate of 2.8 percent between July and September, short of estimates for 3.5 percent growth released just a month ago. Consumers are not spending much, commercial construction was weak, businesses trimmed inventories. The lack of consumer spending was partly explained in another report released Tuesday. Americans’ confidence in the economy improved slightly in November from October, but shoppers remain gloomy heading into the holiday shopping season, according to the monthly survey released by the Conference Board. The lack of industrial and consumer activity has played out in weekly oil inventory reports from the Energy Department, with supplies of crude in storage growing. The next weekly report arrives Wednesday, and expectations are that crude and gasoline supplies grew again last week. Retail prices edged lower again, falling less than a penny to $2.638 per gallon Tuesday. That’s a lot more than last year at this time, when gasoline prices plunged to about $1.91 as the economic crisis unfolded. Gasoline consumption for the week ended Friday declined 1.6 percent from the previous week and 1.4 percent from a year ago, according to the weekly MasterCard SpendingPulse report. Year-to-date consumption for 2009, however, is still up 0.6 percent. MasterCard’s report is based on aggregate sales activity in the MasterCard payments network, coupled with estimates for all other payment forms, including cash and check. Still, gasoline prices are being supported by crude, which has traded between $76 and $82 for more than a month. That is largely being blamed on the dollar because oil is bought and sold in the U.S. currency. Investors holding euros or other currencies can buy more oil when the dollar falls. Crude prices rose Monday when the dollar fell. On Tuesday, the dollar gained against the euro, yen, and British pound. Oil prices fell as much as 2 percent. In other Nymex trading, heating oil fell less than a penny to settle at $1.9497 a gallon. Gasoline for December delivery fell almost 4.04 cents to settle at $1.939 a gallon. Natural gas for December delivery rose 1.3 cents to settle at $4.486 per 1,000 cubic feet. In London, Brent crude dropped $1 to settle at $76.46 on the ICE Futures exchange. Associated Press Writers Alex Kennedy in Singapore, Barry Hatton in Lisbon, Portugal, and Jeannine Aversa in Washington contributed to this report. Continued here: Crude prices sink to $76 per barrel (AP)

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Ford Completes Plan to Amend and Extend Existing Revolving Credit Facility (PR Newswire)

24 November 2009

DEARBORN, Mich., Nov. 24 /PRNewswire-FirstCall/ — Ford Motor Company (NYSE: F – News ) announced today the successful completion of its previously announced plan to amend and extend the revolving credit facility under its secured credit agreement. Revolving lenders have agreed to extend the maturity of commitments totaling $7.2 billion under the facility to November 30, 2013 from December 15, 2011, and such lenders will convert $724 million of their existing revolving loans to a new term loan that matures on December 15, 2013. The total amount extended to 2013, including the new term loan, is $7.9 billion. Each lender that agreed to extend the maturity of its revolving commitment was permitted to reduce its revolving commitment by up to 25 percent at its election and to the extent its reduced revolving commitment exceeded certain specified levels, such excess will be converted into the new term loan under the secured credit agreement maturing on December 15, 2013. In addition, lenders that agreed to extend the maturity of their revolving commitments will receive a 1 percentage point increase in interest rate margins, an increase in quarterly fees and payment of an upfront fee. “We are very pleased with the results of the amendment, extension to our revolving credit facility, and new term loan,” said Neil Schloss, Ford vice president and treasurer. “We appreciate the support of our banking partners as today’s actions will provide additional liquidity through 2013.” On December 3, 2009, Ford will repay $1.9 billion of the existing revolving loans to effect the commitment reductions elected by extending lenders. Lenders with commitments totaling $886 million have elected not to extend those commitments, which will mature on the original maturity date of December 15, 2011. Prior to the amendment, revolving lenders held commitments totaling $10.7 billion that matured on December 15, 2011. After the amendment, revolving lenders hold a total of $8.1 billion of extended and non-extended revolving commitments and $724 million of the new term loan. The lenders also approved amendments to the credit facility that expand existing limitations on debt prepayments and repurchases to allow for further balance sheet improvements. About Ford Motor Company Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company’s brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com . See the original post here: Ford Completes Plan to Amend and Extend Existing Revolving Credit Facility (PR Newswire)

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Ambac Chief Financial Officer Sean Leonard resigns (AP)

24 November 2009

NEW YORK (AP) — Embattled bond insurer Ambac Financial Group Inc. announced Tuesday the resignation of its chief financial officer. The company, based in New York, said Sean Leonard left “to pursue other interests.” The resignation is effective immediately. The departure comes just weeks after Ambac said it may be forced to file for bankruptcy protection. In a filing with the Securities and Exchange Commission Nov. 9, the company said it believes it has enough liquidity to get through the second quarter of 2011, but warned it could run out of money sooner. Ambac for years had backed municipal bonds that rarely defaulted and paid steady dividends. In recent years, however, the company invested in complex new bonds that were comprised of risky mortgages amid the housing bubble. The new bonds were an opportunity for Ambac to generate outsize returns. But as the housing bubble burst and mortgage defaults spiked, the likelihood of issuer default and claims on bond insurance rose. In the filing with the SEC earlier this month, Ambac said it may not be able to generate enough cash to pay operating expenses and debt obligations over the long term. Given the tight credit markets, the company said it also may not be able to access alternate sources of capital. “No assurances can be given that Ambac will be successful in executing any or all of its strategies,” the company said in the filing. Ambac Financial is considering a restructuring of its debt through a prepackaged bankruptcy proceeding. But if it can’t bolster its capital position, the company said it may file for bankruptcy without a lender agreement in place. Leonard joined Ambac in 2005, according to the company. Those who worked under Leonard will report to CEO David Wallis until a replacement is found, Ambac said. An Ambac representative did not immediately return a call for further comment. Shares of Ambac fell 9 cents, or 10 percent, to 81 cents in afternoon trading. In the past year, shares have traded between 35 cents and $2.09. In November of last year, shares were as high as $3.40. More: Ambac Chief Financial Officer Sean Leonard resigns (AP)

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Merck Announces Quarterly Dividends and New $3 Billion Share Repurchase Program (Business Wire)

24 November 2009

WHITEHOUSE STATION, N.J.–(BUSINESS WIRE)–At their meeting today, the Board of Directors of Merck & Co., Inc. declared a quarterly dividend of $0.38 per share on the company’s common stock for the first quarter of 2010. Payment will be made on Jan. 8, 2010 to common stockholders of record at the close of business on Dec. 15, 2009. The Board of Directors today also declared a quarterly dividend of $3.75 per share on the company’s mandatory convertible preferred stock for the first quarter of 2010. Payment will be made on Feb. 15, 2010 to preferred stockholders of record at the close of business on Feb. 1, 2010. In a separate action, the Board of Directors approved purchases over time of up to $3 billion of Merck’s common stock for its treasury. Treasury stock purchases will be made on the open market or in block transactions or in privately negotiated transactions. About Merck Today’s Merck is working to help the world be well. Through our medicines, vaccines, biologic therapies, and consumer and animal products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to health care through far-reaching programs that donate and deliver our products to the people who need them. Merck. Be Well. For more information, visit www.merck.com . Forward Looking Statement This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about the benefits of the merger between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period, due to, among other things, the impact of pharmaceutical industry regulation and pending legislation that could affect the pharmaceutical industry; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions. Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck’s 2008 Annual Report on Form 10-K, Schering-Plough’s Quarterly Report on Form 10-Q for the quarterly period ended Sept. 30, 2009, the proxy statement filed by Merck on June 25, 2009 and each company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site ( www.sec.gov ). View original post here: Merck Announces Quarterly Dividends and New $3 Billion Share Repurchase Program (Business Wire)

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Union mulling options after CN Rail imposes terms

24 November 2009

VANCOUVER, British Columbia (Reuters) – A union representing train engineers at Canadian National Railway Co is unhappy with the railway’s decision to impose labor contract terms on its members and may consider the move tantamount to a lockout, the union’s president said on Tuesday. The Teamsters Canada Rail Conference, which represents 1,700 engineers at Canada’s biggest railroad, is getting advice from its lawyers and will likely issue a statement later in the day, President Daniel Shewchuk said. “We are not very happy at all… it is a bit threatening,” Shewchuk told Reuters. “What we may be considering is that in essence you (CN) have locked us out as we don’t have to accept the changes you have imposed on us,” he said. CN said late on Monday it will raise locomotive engineers’ wages by 1.5 percent beginning November 28, but also hike their monthly mileage cap, the upper limit on the number of miles they must travel on the job, to 4,300 miles from 3,800. It said it had decided to impose these terms to “move the company forward” after holding on-again, off-again contract talks with the Teamsters for more than a year. The engineers’ last contract with CN expired at the end of 2008. “CN’s notice yesterday to the (Teamsters) is by no means a lockout and we expect our engineers to report to their assignments and carry out their duties as required,” CN spokesman Mark Hallman said in an emailed statement. CN said it would still prefer to resolve the dispute without a labor disruption. The two sides have the right under Canadian labor law to issue a 72-hour notice for a strike or lockout. The union has a strike mandate from its members. The higher cap could increase the number of days the engineers would have to be available for work each month, but CN says they would be paid more with the adjusted wage rate. The carrier said it made three offers, including one with a status quo mileage cap and another that would put the unsettled issues to binding arbitration. The union rejected those proposals. Shares in CN were 56 Canadian cents lower at C$56.91 on the Toronto Stock Exchange on Tuesday afternoon. Lumber futures on the Chicago Mercantile Exchange were up sharply in thin holiday-week trade on Tuesday on concerns CN workers may strike. The contract dispute does not involve CN’s unionized locomotive engineers in the United States. (Reporting by Nicole Mordant; Editing by Jeffrey Hodgson) Follow this link: Union mulling options after CN Rail imposes terms

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Advisers get creative in quest for healthy bank M&A

24 November 2009

By Paritosh Bansal NEW YORK (Reuters) – Deal advisers are searching hard for unorthodox ways to pull off mergers of healthy U.S. banks in the face of a gloomy prognosis for such transactions. As capital raisings and auctions of failed institutions dominate the U.S. banking sector, deal advisers said it also makes sense in some cases for strong banks to buy one another. The financial crisis, economic uncertainty and fears about asset quality have made it nearly impossible to go about doing bank deals as one would in normal times, these experts said. So some of the country’s roughly 8,200 banks and their advisers are putting on their creative hats to come up with deals that can account for factors such as future losses in a weak economy and doubts about a target’s assets. These structures could involve separating out bad assets, fixing payouts based on performance and even seeking some help from regulators. “These are all things that are being kicked around in different forms and fashions,” said Joseph Moeller, a managing director at investment bank Keefe, Bruyette & Woods. “These are theoretical things that have not been ironed out yet.” If a buyer doesn’t like certain parts of the seller’s loan portfolio, for instance, the deal could be structured so that the problem assets are separated out into another subsidiary, Moeller said. The subsidiary would then become part of the deal consideration depending on how the loan portfolio worked out, Moeller said. But he added that there are problems that need to be addressed in a situation like that: the subsidiary will have to be capitalized and someone will have to service the loans. Valuation of assets, particularly those related to commercial real estate, is still very much a subjective process, said Rob McCarthy, a senior director in Alvarez & Marsal’s transaction advisory group. “The sellers and the buyers will take their own independent views, which are often mismatched,” McCarthy said. “I don’t think the market’s found itself yet as far as commercial real estate goes,” he said. “That remains an impediment to pricing and structuring of deals.” Chip MacDonald, a financial institutions lawyer at Jones Day, said they had been working on some deals involving payouts depending on the performance of problem loan portfolios. But he added that some other structures such as those where the payout is based on earnings performance or includes clawbacks for future losses on loans are harder to put together. Once the banks are merged it is more difficult to isolate and track such performance measures. Some discussions also revolve around seeking help from regulators such as the Federal Deposit Insurance Corp for a potential deal involving an open bank.  Continued… See original here: Advisers get creative in quest for healthy bank M&A

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More shoppers, cautious spending seen for Black Friday

24 November 2009

WASHINGTON (AFP) – Shoppers are expected to come out in force but cling a bit tighter to their wallets for the kickoff of the holiday gift-giving season this weekend, new surveys showed Tuesday. The National Retail Federation said it expects 134 million people to be out shopping on “Black Friday,” the big shopping day after Thursday’s Thanksgiving Day holiday, and the following Saturday and Sunday. “Regardless of what we?ve already seen these last few weeks in terms of promotions, retailers still have a few tricks up their sleeves to excite Black Friday shoppers,” said Tracy Mullin, NRF president and chief executive. “With retailers fully aware that shoppers are looking for incredible deals, Americans can expect huge sales on popular items like toys, electronics and apparel.” The retail group confirmed its forecast calling for a one percent decline in holiday spending to 437.6 billion dollars. A separate report by the International Council of Shopping Centers showed 26 percent of US households will see members out shopping on Friday, including 36 percent of consumers aged between 18 and 34 years old. The ICSC survey showed one third of shoppers may be at the stores for early-bird specials between 4 am and 8 am. “Bargain Friday shopping has become a tradition in America when consumers search for the best bargains that retailers offer,” said Michael Niemira, ICSC director of research and chief economist. “Bargain Friday’s performance typically is not a precursor of the entire holiday season’s sales picture — which ICSC projects will post a modest gain — yet ICSC anticipates a very strong Bargain Friday.” ICSC predicts a rise in overall holiday retail sales of between one and two percent for 2009. A Western Union survey meanwhile found that 65 percent of Americans plan to skip Black Friday holiday shopping this year, citing crowded stores as a major reason. The survey also found that 51 percent of Americans said cash is the gift they would most like to receive this year. Continue reading here: More shoppers, cautious spending seen for Black Friday

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Half of banks’ losses may be unknown: IMF chief (Reuters)

24 November 2009

PARIS (Reuters) – Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States, the International Monetary Fund’s chief, Dominique Strauss-Kahn, was quoted as saying on Tuesday. In an interview with French newspaper Le Figaro, Strauss-Kahn also said the IMF thought the euro currency was probably a bit too strong. “There are still some important losses that have not been unveiled,” Strauss-Kahn was quoted as saying in response to a question on banks, according to excerpts of the interview that were sent to media ahead of publication on Wednesday. “It’s possible that 50 percent (of bank losses) are still hidden in their balance sheets. The proportion is greater in Europe than in the United States,” he said. Asked about currencies, Strauss-Kahn noted that Europeans were the ones who have been complaining the most about the strength of their currency. “The IMF also thinks that the euro is probably a bit too strong, but it’s very difficult to determine in a way that is unquestionable the level at which currencies would be balanced,” he said. “Europeans must, however, better affirm their economic strategy if they do not want to let the Sino-American couple dominate the global debate for the next 20 years,” he said. Strauss-Kahn said the two crucial factors to achieve the status of major economic power today are a big population and technological advances. “The enlarged Europe has a big population, with 500 million inhabitants, but on the technological front things have not moved on sufficiently since the Lisbon strategy was launched in 2002,” he said, referring to the 27-member European Union. The Lisbon strategy was an EU roadmap that was supposed to cut red tape, promote growth and make the bloc the world’s most innovative region. “I note that the technological debate, which today is focused particularly on energy, is much more vigorous in the United States than in Europe,” Strauss-Kahn said. (Reporting by Estelle Shirbon; Editing by Leslie Adler) View original post here: Half of banks’ losses may be unknown: IMF chief (Reuters)

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Senators press EU to speed its Oracle-Sun probe (AP)

24 November 2009

SAN FRANCISCO (AP) — U.S. senators are pressuring European antitrust regulators to hurry their investigation of Oracle Corp.’s proposed acquisition of Sun Microsystems Inc., citing Sun’s “precarious” financial condition and fears about more layoffs at the struggling computing company. A group of 59 senators outlined the concerns in a letter Tuesday to the European Commission, which has held up the $7.4 billion deal over worries that Oracle would be too dominant in the market for database software. Oracle is the leader in proprietary database software — which means its underlying code is kept private — while Sun’s MySQL division makes the No. 1 open-source database. Companies use database software to manage large stockpiles of information, such as their payroll or customer data. The Oracle-Sun combination would be one of the biggest technology deals of the year, and was cleared in August by the U.S. Department of Justice. This month, though, the European Commission notified the Silicon Valley companies of its formal objection to the deal. Oracle and Sun are appealing that ruling before the EU’s preliminary ruling has a chance to become final. EU regulators have until Jan. 27 to wrap up that review. Sen. John Kerry, D-Mass., the lead author of Tuesday’s letter, said a further delay in the review “threatens thousands of American jobs, so we felt compelled to ask for a speedy resolution.” “Sun Microsystems’ financial position has become more precarious and the commission’s inquiry has continued,” the letter read. “Some have raised concerns over the company’s ability to continue to employ its thousands of workers. Accordingly, we respectfully request the European Commission complete its investigation of this transaction as quickly as possible.” Both companies had hoped the deal would close this summer. Since it hasn’t, Sun rivals such as IBM Corp. and Hewlett-Packard Co. have been playing up uncertainty about the deal to steal business from Sun. Sun has lost $677 million over the last four quarters. It also said last month it would be cutting up to 3,000 jobs, or 10 percent of its worldwide work force, as it awaits a decision on the fate of the deal. Because of fears that the deal won’t get completed, Sun’s stock is trading for much less than the $9.50 per share that Oracle would pay to acquire the company. The stock fell 4 cents, or 0.5 percent, to $8.50 on Tuesday afternoon. Continue reading here: Senators press EU to speed its Oracle-Sun probe (AP)

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Vivendi issues euro1.2 billion in bonds (AP)

24 November 2009

PARIS (AP) — France’s Vivendi SA said Tuesday it has issued euro1.2 billion ($1.8 billion) in bonds. The Paris-based media and entertainment giant said the two-part bond issue aims to “increase the average maturity of the debt … and to maintain a good balance between bonds and credit lines.” Vivendi is currently the focus of intense interest because a deal between U.S. media giants Comcast Corp. and NBC Universal to create one of the world’s largest media companies hinges on what the French group decides to do with its 20 percent stake in NBC Universal. Vivendi has an option until Dec. 10 to dispose of its stake in NBC Universal. Majority owner General Electric Co. is expected to buy it and then sell a 51 percent stake of the entire NBC Universal unit to Comcast, which serves about a quarter of the nation’s subscription TV households. Here is the original post: Vivendi issues euro1.2 billion in bonds (AP)

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UPDATE – Half of banks’ losses may be unknown -IMF chief (at Reuters)

24 November 2009

(Adds quotes) PARIS, Nov 24 (Reuters) – Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States, the International Monetary Fund’s chief, Dominique Strauss-Kahn, was quoted as saying on Tuesday. In an interview with French newspaper Le Figaro, Strauss-Kahn also said the IMF thought the euro currency was probably a bit too strong. “There are still some important losses that have not been unveiled,” Strauss-Kahn was quoted as saying in response to a question on banks, according to excerpts of the interview that were sent to media ahead of publication on Wednesday. “It’s possible that 50 percent (of bank losses) are still hidden in their balance sheets. The proportion is greater in Europe than in the United States,” he said. Asked about currencies, Strauss-Kahn noted that Europeans were the ones who have been complaining the most about the strength of their currency. “The IMF also thinks that the euro is probably a bit too strong, but it’s very difficult to determine in a way that is unquestionable the level at which currencies would be balanced,” he said. “Europeans must, however, better affirm their economic strategy if they do not want to let the Sino-American couple dominate the global debate for the next 20 years,” he said. Strauss-Kahn said the two crucial factors to achieve the status of major economic power today are a big population and technological advances. “The enlarged Europe has a big population, with 500 million inhabitants, but on the technological front things have not moved on sufficiently since the Lisbon strategy was launched in 2002,” he said, referring to the 27-member European Union. The Lisbon strategy was an EU roadmap that was supposed to cut red tape, promote growth and make the bloc the world’s most innovative region. “I note that the technological debate, which today is focused particularly on energy, is much more vigorous in the United States than in Europe,” Strauss-Kahn said. (Reporting by Estelle Shirbon; Editing by Leslie Adler) ((estelle.shirbon@reuters.com, +33 1 4949 5342, Reuters Messaging: estelle.shirbon.reuters.com@reuters.net)) He advised Europeans to better affirm their economic strategy if they wanted to avoid seeing the global debate dominated by China and the United States for the next 20 years. (Reporting by Estelle Shirbon, editing by Anna Willard) ((estelle.shirbon@reuters.com, +33 1 4949 5342, Reuters Messaging: estelle.shirbon.reuters.com@reuters.net)) See the original post: UPDATE – Half of banks’ losses may be unknown -IMF chief (at Reuters)

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UPDATE 1-Windstream to buy Iowa Tel for $530 mln

24 November 2009

* Deal includes $269 mln in shares, $261 mln cash * Windstream to also assume $598 mln in debt * Values Iowa at about $16/shr excluding debt * Iowa rises 25.8 pct, Windstream falls 0.9 pct NEW YORK, Nov 24 (Reuters) – Windstream Corp ( WIN.N ) said on Tuesday it has agreed to buy Iowa Telecommunications ( IWA.N ) for $530 million, excluding debt, as it looks to offset declining revenue from continued disconnections of home phones. Iowa shares rose 25 percent after news of the purchase. Under the agreement, Windstream will give Iowa shareholders $269 million of its shares and $261 million cash, and take on $598 million in debt. The deal values Iowa at about $16 per share, excluding debt, based on Monday’s closing price. The offer comes to $7.90 in cash and 0.804 Windstream share for each Iowa share. Iowa shares rose $3.28, or 25.8 percent, to $15.97, and Windstream fell 9 cents, or 0.9 percent, to $10.04 on the New York Stock Exchange at mid-afternoon. Windstream said it expects annual savings of $35 million from the deal, which also includes tax assets with an estimated net present value of about $130 million. The deal gives Windstream 256,000 telephone access lines, 95,000 high-speed Internet customers and 26,000 television customers in Iowa and Minnesota, it said. Windstream said it would finance the cash portion of the deal and repayment of Iowa’s outstanding debts with debt financing or new bank borrowings. (Reporting by Sinead Carew ; Editing by Richard Chang) ((sinead.carew@thomsonreuters.com; + 1 646 2236186)) See the rest here: UPDATE 1-Windstream to buy Iowa Tel for $530 mln

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Top 2 booksellers report losses, their shares fall (AP)

24 November 2009

NEW YORK (AP) — Barnes & Noble Inc. and Borders Group Inc., the nation’s two largest brick-and-mortar book sellers, both posted quarterly losses Thursday and forecast a difficult holiday season, saying competition from discount chains and online retailers is stiffening. AP – FILE – In this May 18, 2009 file photo, a customer reads magazines inside the Barnes and Noble … Barnes & Noble, the larger of the two, also cut its forecast for annual profit, and shares of both retailers fell. Even with online presence, traditional bookstores have had a rough time facing off against online sellers like Amazon.com as they also compete with low-price brick-and-mortar stores including Wal-Mart Stores and Target and cope with consumers cutting discretionary purchases amid tough economic times. But Barnes & Noble CEO Stephen Riggio said this fall’s price war among Amazon.com, Walmart.com and Target Corp.’s online division — in which those retailers cut prices on preorders for some new titles to $9 and less — was “overblown.” “Book-selling has been for a long time a ‘long tail’ business,” Riggio said during a conference call with investors. “Best sellers represent less than 5 percent of our sales and among these very top best sellers less than 1 percent of our sales.” Still, “every percentage counts,” said Michael Norris, a senior analyst with Simba Information. “I wouldn’t be that quick to dismiss the influence of the big discounters there,” he said. “You can go to Walmart.com and get the Sarah Palin book for a few bucks less than you can at either of them.” Barnes & Noble, which operates 775 stores, reported a fiscal second-quarter loss of 43 cents per share. Excluding costs related to buying back its 636-store college bookstore from its chairman in August, it earned 30 cents per share, matching analyst forecasts. Sales for the quarter ended Oct. 31 rose 4 percent to $1.16 billion — though the increase was due to revenue from the college bookstores. Excluding that, Barnes & Noble sales fell 2 percent to $1.09 billion. The company, based in New York, lowered its yearly forecast as the costs of producing its new electronic reader, the Nook rose and holiday sales seemed off to a weak start. Shares fell $1.58, or 6.7 percent, to $21.94 during midday trading. The stock has traded between $12.64 and $28.78 over the past year. Barnes & Noble is pinning its hopes for future profit on the Nook, a competitor with Amazon.com’s Kindle for which it began accepting pre-orders last month. Last week, it said orders had exceeded expectations and those placed beginning Nov. 20 would be filled Jan. 4 or later. The company plans to bulk up its e-content digital business, selling digital subscriptions to newspapers, blogs, magazines and other periodicals as well as digital books. Both companies forecast a weak holiday season. “This is an unpredictable holiday selling season as consumers remain unsettled and reactive to economic news,” said Borders CEO Ron Marshall. Borders Group Inc. lost $38.5 million, or 64 cents per share, less than a year ago, but its third straight quarterly loss. Revenue for the three months that ended Oct. 31 dropped 13 percent to $602.5 million. In an effort to improve its finances, Borders, based in Ann Arbor, Mich., has cut jobs, closed stores and chosen new leaders. It also has shifted its focus from less profitable categories like music and toward children’s books, toys, stationery and its cafe. But it has been slower than Barnes & Noble to shutter its lower-margin small-format stores and grow its e-commerce business. “Barnes & Noble still remains at least one step ahead of Borders,” Norris said. Borders shares fell 21 cents, or 10.5 percent, to $1.80. The stock has traded between 34 cents and $4.48 over the past year. AP Retail Writer Michelle Chapman contributed to this report from New York. The rest is here: Top 2 booksellers report losses, their shares fall (AP)

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FOREX-Dollar hits 6-week low vs yen on recovery concern (at Reuters)

24 November 2009

* Lower U.S. Q3 GDP lifts yen vs dollar * U.S. consumer confidence higher than expected * Higher-yielding currencies such as Aussie dollar fall (Updates prices, adds comment, changes byline) By Wanfeng Zhou NEW YORK, Nov 24 (Reuters) – The dollar fell to a six-week low against the yen on Tuesday after a mixed bag of U.S. data kept worries about an economic recovery alive, enhancing the safe-haven appeal of the Japanese currency. The greenback, however, held steady against the euro as declines in the U.S. stock market dented risk appetite and investors were reluctant to place big bets before the Thanksgiving holiday on Thursday. The U.S. economy grew more slowly than first thought in the third quarter, the Commerce Department said. In another report from the Conference Board, a private research group, the consumer confidence index edged higher, but still pointed to weak sentiment about the labor market. For more, see [ID:nN24296971]. Kathy Lien, director of research at GFT Forex in New York, said the mixed economic reports this morning have “instilled a negative tone across financial markets.” But overall, “the markets are very hesitant to take the dollar to any fresh lows, particularly against the euro and the other key currencies,” she added. In afternoon trading, the dollar fell 0.5 percent to 88.48 yen, after hitting a session low at 88.36 JPY= , the lowest in about six weeks, according to Reuters data. The euro rose 0.1 percent to $1.4975 EUR= , in choppy trading, but fell 0.5 percent to 132.49 yen. EURJPY=R In its second estimate of third-quarter gross domestic product, the Commerce Department said on Tuesday that the economy expanded at an annual rate of 2.8 percent, rather than the 3.5 percent pace it estimated last month. ————————————————————– For a graphic on the impact of U.S. real GDP on the dollar, click on link.reuters.com/wem43g ————————————————————– “This (GDP) number is slightly negative for risk appetite because of the downgrade in the personal consumption number,” said Jacob Oubina, senior currency strategist at Forex.com in Bedminster, New Jersey. Separately, the Conference Board’s index of consumer attitudes increased slightly to to 49.5 in November from 48.7 in October, while the Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas rose 0.3 percent in September. See [ID:nN24297263].  Continued… Read more from the original source: FOREX-Dollar hits 6-week low vs yen on recovery concern (at Reuters)

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GE Oil & Gas installs LNG terminal in Adriatic (AP)

24 November 2009

HARTFORD, Conn. (AP) — The oil and gas subsidiary of General Electric Co. said Tuesday it is operating the first gravity-based offshore liquefied natural gas terminal that is expected to save time in the construction of an LNG project off Italy’s northeast coast in the Adriatic Sea. GE Oil and Gas has installed the artificial island gravity-based structure, which is owned and operated by Adriatic LNG. The project includes a reinforced concrete box on the sea floor and houses two LNG storage tanks. It’s 1,230 feet long by 377 feet wide. Tony Mercer, project manager for Aker Kvaerner Contracting International, Adriatic LNG’s primary contractor, said the GE Oil and Gas project will help save time in construction and commissioning of the LNG project. The Adriatic LNG terminal will significantly increase Italy’s regasification capacity, is larger than two soccer fields and reaches as high as a 10-story building. It has two LNG tanks with a combined annual capacity of 8 billion cubic meters, or about 10 percent of Italy’s annual gas demand. The Adriatic LNG terminal receives shipments from Qatar, Egypt and Trinidad twice a week. The LNG is regasified at the terminal and dispatched to Italy’s gas network. Shares of GE, based in Fairfield, Conn., rose 13 cents, to $16.15 in afternoon trading. See the rest here: GE Oil & Gas installs LNG terminal in Adriatic (AP)

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Tepid economic reports and a stronger U.S. dollar send oil prices downward

24 November 2009

By Dirk Lammers, The Associated Press Oil prices fell below US$76 a barrel Tuesday with new data showing a slow U.S. economic recovery and consumer confidence that remains lukewarm at best. The dollar also gained against other major currencies, which can keep energy prices in check. Benchmark crude for December delivery fell $1.63 to $75.93 a barrel on the New York Mercantile Exchange. The Commerce Department said the economy grew at a rate of 2.8 per cent between July and September, short of estimates for 3.5 per cent growth released just a month ago. Consumers are not spending much, commercial construction was weak, businesses trimmed inventories. The lack of consumer spending was partly explained in another report released Tuesday. Americans’ confidence in the economy improved slightly in November from October, but shoppers remain gloomy heading into the holiday shopping season, according to the monthly survey released by the Conference Board. The lack of industrial and consumer activity has played out in weekly oil inventory reports from the Energy Department, with supplies of crude in storage growing. The next weekly report arrives Wednesday, and expectations are that crude and gasoline supplies grew again last week. Retail prices edged lower again, falling less than a penny to $2.638 per gallon Tuesday. That’s a lot more than last year at this time, when gasoline prices plunged to about $1.91 as the economic crisis unfolded. Gasoline consumption for the week ended Friday declined 1.6 per cent from the previous week and 1.4 per cent from a year ago, according to the weekly MasterCard SpendingPulse report. Year-to-date consumption for 2009, however, is still up 0.6 per cent. MasterCard’s report is based on aggregate sales activity in the MasterCard payments network, coupled with estimates for all other payment forms, including cash and check. Still, gasoline prices are being supported by crude, which as traded between $76 and $82 for more than a month. That is largely being blamed on the dollar because oil is bought and sold in the U.S. currency. Investors holding euros or other currencies can buy more oil when the dollar falls. Crude prices rose Monday when the dollar fell. On Tuesday, the dollar gained against the euro, yen, and British pound. Oil prices fell as much as 2 per cent. In other Nymex trading, heating oil fell 3.74 cents to $1.942 a gallon. Gasoline for December delivery dropped 3.74 cents to $1.942 a gallon. Natural gas for December delivery rose nearly 10 cents to $4.57 per 1,000 cubic feet. In London, Brent crude dropped $1.10 to $76.36 on the ICE Futures exchange. Read the original: Tepid economic reports and a stronger U.S. dollar send oil prices downward

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Treasury prices improve after strong demand seen for $42 billion in 5-year notes

24 November 2009

By Stephen Bernard, The Associated Press NEW YORK – Treasury prices rose Tuesday after solid results from an auction of five-year notes shored up the market’s confidence that demand for U.S. government debt would remain strong. The bid-to-cover ratio, a measure of demand, was 2.81 – the highest level seen at any auction for five-year notes since 2007. The ratio was 2.63 last month for an auction of notes with a similar maturity. “Everything about this auction was positive,” said Richard Bryant, senior vice-president of U.S. Treasury trading at MF Global. The price of five-year notes rose 6/32 to 101 5/32, pushing its yield down to 2.13 per cent from 2.18 per cent late Monday. Bryant said the results from auctions of shorter-term government debt remains strong because of the amount of cash looking to be invested in safe investments. Government debt with maturities of a few months or years have been in high demand recently because there is little concern about near-term inflation. Investors who have locked in gains from the stock market’s eight-month rally are now also looking for places to invest cash through the end of the year, which has further boosted demand, Bryant added. Tuesday’s results followed strong results at auctions Monday for two-year notes and three-month and six-month bills. The government is set to auction off $32 billion in seven-year notes on Wednesday as it wraps up sales for the week ahead of the Thanksgiving holiday. Bryant said all indications point to another strong showing on Wednesday. In other trading, the price on the 10-year note, which is often used as a benchmark for consumer loans, rose 6/32 to 100 12/32. Its yield fell to 3.33 per cent from 3.36 per cent. The price of the 30-year bond rose 7/32 to 101 28/32, sending its yield down to 4.26 per cent from 4.28 per cent. The yield for three-month T-bills rose to 0.05 per cent from 0.03 per cent. Its yield had turned negative last week as investors looked for a safe place to invest short-term cash as the end of the year approaches. The cost of borrowing between banks declined. The British Bankers’ Association said the rate on three-month loans in dollars – the London Interbank Offered Rate, or Libor – fell to 0.2606 per cent from 0.2622 per cent. Read more: Treasury prices improve after strong demand seen for $42 billion in 5-year notes

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