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GEN2Media Corp (GTWO)

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...

Primegen Energy Corp (PGNE)

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...

CAVU Resources Inc (CAVR)

CAVU Resources Inc (CAVR)

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...

CAVU Resources Inc (CAVR)

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)

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)

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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Stocks flat as Fed eyes stronger 2010 (Reuters)

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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Sprint completes purchase of Virgin Mobile USA (AP)

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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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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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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Crude prices sink to $76 per barrel (AP)

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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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 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)

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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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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GM’s Saab sale collapses as buyer backs out

24 November 2009

By Kevin Krolicki and David Bailey DETROIT (Reuters) – A deal for General Motors Co GM.UL to sell its Saab brand collapsed on Tuesday when the buyer pulled out in a move that threatens the Swedish luxury brand with closure. GM had been aiming to close a deal by the end of next month to sell Saab to a partnership led by the Swedish luxury car builder Koenigsegg and backed by China’s Beijing Automotive Industrial Holding Ltd. Koenigsegg said in a statement on Tuesday that it has withdrawn from the sale process, about five months after the two sides had reached a preliminary deal for Saab. “The time factor has always been critical for our strategy to breathe new life into the company,” Koenigsegg said. The development represents a setback for GM, which has been working to shed brands as part of a more narrowly focused sales strategy after emerging from a bankruptcy in July, backed by over $50 billion in U.S. government financing. Closure of Saab and its Trolhattan, Sweden, production hub would also threaten over 3,000 jobs and scuttle a plan spearheaded by the Swedish government to help finance a restructuring of the company. A tentative deal reached by GM to sell its Saturn brand to Penske Automotive Group Inc ( PAG.N ) also collapsed at the end of September, just before it was expected to close. Chief Executive Fritz Henderson, who has said the automaker needs to shift its focus away from making deals and back to making cars, said GM would take the next few days to consider the options for Saab. “We’re obviously very disappointed with the decision to pull out of the Saab purchase,” Henderson said in a statement. “We will take the next several days to assess the situation and will advise on the next steps next week.” GM’s 13-member board is scheduled to meet next Tuesday in Detroit for a regular monthly meeting and the question of what to do with Saab will now lead the agenda, said one person with direct knowledge of the situation. There are no other bidders for the brand, meaning that GM’s only options would be to restart the sale process or opt for closure, the person said. Because of the pressure GM faces to focus on its remaining four core brands — Chevrolet, Cadillac, Buick and GMC — a wind-down of Saab operations is likely, the person said. Sweden effectively ruled out a state bailout for Saab, saying the brand’s future would have to rest with finding a new private-sector buyer. “You can’t, by state aid, keep a company ongoing, if you don’t have any chance for a competitive company,” Joran Hagglund, state secretary at Sweden’s Industry Ministry, told reporters. Aaron Bragman, an analyst with IHS Global Insight, said the impact on GM of closing Saab would be limited.  Continued… See the article here: GM’s Saab sale collapses as buyer backs out

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Earnings Preview: Deere 4th-quarter results (AP)

24 November 2009

Deere & Co., the world’s largest maker of farm equipment, reports earnings for its fiscal fourth quarter on Wednesday before the market opens. Below is a summary of key developments and analyst opinion related to the period. OVERVIEW: Sluggish economic conditions in the U.S. and much of the rest of the world continued to drive down demand for farming and construction equipment, two of Deere’s key products. Farm commodity prices in particular show little sign of rebounding to anything like the bubble highs of the past couple of years — a period when many farmers bought new equipment. The Moline, Ill.-based company in August cut sales projections for the year, saying it expects its biggest single-year drop in at least 50 years. But Deere, the world’s largest maker of farm equipment, reiterated an annual profit forecast of $1.1 billion. And the company has started calling back some workers it laid off earlier this year in response dropping demand. More than 450 employees of an Iowa farm equipment plant were called back last month to start production of 2010 models. Samuel R. Allen became Deere’s president and CEO in the third quarter, succeeding Robert W. Lane. But few, if any, analysts expect significant changes, particularly in Deere’s focus on markets outside North America, which accounts for more than half of the company’s agricultural sales, its biggest source of revenue. Deere in late August said it will spend $125 million on a new manufacturing and parts center in Russia. BY THE NUMBERS: Analysts surveyed by Thomson Reuters, on average, expect a profit of 3 cents per share on revenue of $4.44 billion. In the year-earlier period, Deere posted a profit of 81 cents per share on revenue of $6.73 billion. ANALYST TAKE: Longbow Research analyst Eli Lustgarten expects Deere to report a profit of 2 cents per share and sees difficult quarters ahead since farm commodity prices have fallen and aren’t expected to rebound soon. “Virtually all of (Deere’s) current earnings stem from the farm equipment sector and anecdotal evidence from the farm belt has suggested increased caution over the past few months in regards to farm equipment purchases, largely because it is not necessary to replace existing equipment (after two strong years of buying) and because the expected business outlook/expansion does not merit new purchases,” Lustgarten wrote in a note to investors. WHAT’S AHEAD: Though Allen is new and some analysts see the company taking a close look at its strategy, Barclays Capital analyst Meredith Taylor wrote that the company is unlikely to shift its focus from emerging markets and other growth opportunities. Deere hasn’t provided an outlook for fiscal 2010, “but we think that management looks for mixed trends by geography,” Taylor wrote. Her firm sees stronger trends in Latin America and continued difficulties in Europe. STOCK PERFORMANCE: During the quarter, Deere shares rose 4.8 percent to finish at $45.55 on Oct. 30. Over the past year, the stock has traded between $24.51 and $53.59 per share. See the original post: Earnings Preview: Deere 4th-quarter results (AP)

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DEALTALK-Advisers get creative in quest for healthy bank M&A

24 November 2009

(For more Reuters DEALTALKS, click [DEALTALK/]) * Unorthodox deal structures weighed for healthy banks * Deals could involve payouts, separating bad assets * FDIC deals, capital are the order of the day By Paritosh Bansal NEW YORK, Nov 24 (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.  Continued… Visit link: DEALTALK-Advisers get creative in quest for healthy bank M&A

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UPDATE 1-Berkshire venture tops PNC for Capmark servicing

24 November 2009

* Deal valued at about $468 million By Tom Hals WILMINGTON, Del., Nov 24 (Reuters) – Capmark Financial Group Inc [CPFNG.UL] said on Tuesday that it agreed to sell its mortgage loan servicing business to a joint venture between Berkshire Hathaway and Leucadia, which raised its bid on Monday to value the unit at about $468 million. Capmark Financial Group Inc filed for bankruptcy in October with a plan to sell its mortgage servicing business, one of the world’s largest, to Berkshire Hathaway Inc( BRKa.N ) and Leucadia National Corp ( LUK.N ) and then opened the agreement to higher bids. A Capmark attorney, Michael Kessler of Dewey & LeBoeuf, said the company also negotiated with a unit of PNC Financial Services Group Inc ( PNC.N ), which never put forward a proposal that met the requirements of a qualifying bid. Kessler said the Friday bid deadline was extended several times right through to Monday night to give more time for PNC’s Midland Loan Services to qualify. “During the course of the day, Berkadia also increased its bid to, I believe, have us cut off the bid extendsion deadline to PNC,” said Kessler. On Monday, the Berkshire-Leucadia venture, known as Berkadia, increased its bid to a value of about $468 million. Capmark’s prebankruptcy agreement with Berkadia was worth about $408 million, according to Kessler. Capmark services $288.6 billion in loans, the third-largest commercial and multifamily residential loan portfolio. The case is in re: Capmark Financial Group, U.S. Bankruptcy Court, District of Delaware, No. 09-13684. ((thomas.hals@thomsonreuters.com; 1-302-993-6283; Reuters Messaging: thomas.hals.reuters.com@reuters.net)) Read the original: UPDATE 1-Berkshire venture tops PNC for Capmark servicing

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U.S. Department of Energy Announces $24 Million Smart Grid Stimulus Grant Award to Beacon Power (Business Wire)

24 November 2009

TYNGSBORO, Mass.–(BUSINESS WIRE)–Beacon Power Corporation (Nasdaq: BCON – News ), a company that designs and develops advanced products and services to support more stable, reliable and efficient electricity grid operation, said today that the U.S. Department of Energy (DOE) has announced that it has awarded a stimulus grant to Beacon valued at $24 million, for use in the construction of the Company’s second 20 MW flywheel energy storage plant, to be located in Chicago, Illinois. “We’re extremely pleased to receive this grant award from the Department of Energy,” said Bill Capp, Beacon president and CEO. “DOE has long supported Beacon’s pioneering efforts to bring our clean, sustainable and cost-saving energy storage technology to the grid. This $24 million grant, which is the 4 th largest out of 16 energy storage grants announced today, represents the most significant financial boost Beacon has ever received from the federal government. We believe it underscores the unique value and stabilizing benefits of our grid-scale flywheel systems. We’re very grateful for DOE’s continued support.” Capp added: “Thanks to DOE’s strong support, we can now continue to move forward with plans to build and operate a second 20 MW regulation plant, in addition to the one we’ve begun work on in Stephentown, New York. Doing so will expand our merchant service provider business model in the regulation market, and create a foundation for promoting and selling turnkey systems to vertically integrated utilities here and overseas.” According to DOE, the funding award is to “Design, build, test, commission and operate a utility-scale 20 MW flywheel energy storage frequency regulation plant in Chicago, Illinois, and provide frequency regulation services to the grid operator, the PJM Interconnection. The project will also demonstrate the technical, cost and environmental advantages of fast-response flywheel-based frequency regulation management, lowering the cost to build a 20 MW flywheel energy storage plant to improve grid reliability while increasing the use of wind and solar power.” The grant for the Chicago facility results from one of Beacon’s two applications for DOE Smart Grid demonstration project funding, known as Funding Opportunity Announcement DE-FOA-0000036. Area of Interest 2.2 of the DOE solicitation contemplated one or two grants for Frequency Regulation Ancillary Services projects. The Department made only one award, which was for Beacon’s 20 MW regulation plant. The grant award of $24 million is for 50% of the project’s estimated cost. DOE will provide further details of the grant conditions in the near future. Flywheel Energy Storage and Frequency Regulation Frequency regulation is an essential grid service that is performed by maintaining a tight balance between electricity supply and demand. Beacon’s 20 MW plant has been designed to provide frequency regulation services by absorbing electricity from the grid when there is too much, and storing it as kinetic energy in a matrix of flywheel systems. When there is not enough power to meet demand, the flywheels inject energy back into the grid, thus helping to maintain proper electricity frequency (60 cycles/second). Thanks to their ability to recycle electricity efficiently and act as “shock absorbers” to the grid, Beacon’s flywheel plants will also help support the integration of greater amounts of renewable (but intermittent) wind and solar power resources. Unlike conventional fossil fuel-powered generators that provide frequency regulation, flywheel plants will not consume any fuel, nor will they directly produce CO 2 greenhouse gas emissions or other air pollutants, such as NO X or SO 2 . About Beacon Power Beacon Power Corporation designs, develops and is commercializing advanced products and services to support stable, reliable and efficient electricity grid operation. Beacon’s Smart Energy Matrix, now in production, is a non-polluting, megawatt-scale, utility-grade, flywheel-based solution designed to provide less expensive, and more sustainable and effective, frequency regulation services to the nation’s power grid. The Company’s business strategy is both to   supply   frequency regulation services from its own plants, and to sell its systems directly to utilities or grid operators in some parts of North America and selected international markets. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com . Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995: This Material contained in this press release may include statements that are not historical facts and are considered “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Beacon Power Corporation’s current views about future events, financial performances, and project development. These “forward-looking” statements are identified by the use of terms and phrases such as “will,” “believe,” “expect,” “plan,” “anticipate,” and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Beacon’s expectation. These factors include: a short operating history; a history of losses and anticipated continued losses from operations; the complexity and other challenges of arranging project financing and resources for one or more frequency regulation power plants, including uncertainty about whether we will be successful in finalizing the DOE loan guarantee support for our Stephentown, New York, facility, or complying with the conditions or ongoing covenants of that support; our need to comply with any disbursement or other conditions under the DOE grant program; a need to raise additional equity to fund the project and Beacon’s other operations in uncertain financial markets; conditions in target markets, including the fact that some ISOs have been slow to comply with FERC’s requirement to update market rules to include new technology such as the Company’s; our ability to obtain site interconnection approvals, landlord approvals, or other zoning and construction approvals in a timely manner; limited experience manufacturing commercial products or supplying frequency regulation services on a commercial basis; limited commercial contracts for revenues to date; the dependence of revenues on the achievement of product optimization, manufacturing and commercialization milestones; dependence on third-party suppliers; intense competition from companies with greater financial resources, especially from companies that are already in the frequency regulation market; possible government regulation that would impede the ability to market products or services or affect market size; possible product liability claims and the negative publicity which could result; any failure to protect intellectual property; retaining key executives and the possible need in the future to hire and retain key executives; the historical volatility of our stock price, as well as the volatility of the stock price of other companies in the energy sector, especially in view of the current situation in the financial markets generally. These factors are elaborated upon and other factors may be disclosed from time to time in Beacon Power filings with the Securities and Exchange Commission. Beacon Power expressly does not undertake any duty to update forward-looking statements. Read this articl e: U.S. Department of Energy Announces $24 Million Smart Grid Stimulus Grant Award to Beacon Power (Business Wire)

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Hedge Funds May Get $11 Billion Out Of Lehman Brothers As Early As March

24 November 2009

Nearly a year after Lehman Brothers collapsed, hedge funds are still waiting for the return of money held in prime brokerage accounts by Lehman Brothers International (Europe). More than $35 billion of hedge fund assets were frozen when the bank collapsed. For months the hedge funds have argued that the money needed to be returned to them promptly to avoid their own collapse. Around $13 billion has already been returned. Now PricewaterhouseCoopers, the administrators for bankrupt Lehman’s London-based unit, have put forth a plan that would let hedge funds recover up to $11 billion of those frozen assets. The proposal requires approval by 90 percent of Lehman’s clients, who have until December 2 to vote on the plan. If the plan is approved, PwC hopes to set a deadline for funds filing claims for the end of February. The assets could be returned by the end of March. An earlier attempt to speed up the return of the hedge fund assets was struck down by British courts. The long delay in getting assets out of Lehman demonstrates the wisdom of the modern day runs on the banks that we saw last year, when funds tried to pull money out of firms that were rumored to be in trouble. That was often described as a panic. But, with hindsight, we can now see that leaving money inside a failing financial firm can have serious costs. Reuters has more on the latest developments . Read the original post: Hedge Funds May Get $11 Billion Out Of Lehman Brothers As Early As March

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Heinz, Hormel optimistic about sales in 2010

24 November 2009

By Jessica Wohl CHICAGO (Reuters) – U.S. food makers H.J. Heinz Co ( HNZ.N ) and Hormel Foods Corp ( HRL.N ) said they expect sales to rise in the coming months as they spend more on marketing to win the attention of recession-weary consumers who are dining at home instead of eating out. Still, the companies reported results for the past quarter that failed to impress investors, who had expected both to get more of a lift from an increase in meals eaten at home. Heinz, which makes ketchup and Ore-Ida frozen potatoes, posted a smaller-than-expected decline in quarterly profit on Tuesday, as overall sales rose despite a decline in North America. But it is optimistic about sales heading into the second half of fiscal year 2010 and raised its profit forecast. This year, Heinz has faced intense promotional discounting in the frozen food section by competitors like Nestle SA’s ( NESN.VX ) Lean Cuisine. It will respond by increasing marketing spending by about 40 percent on its Smart Ones frozen meals and bringing out new Smart Ones products in the spring. “They’re showing a lot of confidence going forward,” said Solaris Asset Management chief investment officer Tim Ghriskey, whose firm no longer owns Heinz shares. “They say they’re going to increase marketing, they’re going to increase some new-product work and that shows a lot of management confidence.” Hormel posted a bigger-than-expected increase in quarterly profit due to lower hog prices, but sales fell more than expected as sales of foods such as Spam lunch meat were flat. It said earnings should rise in the current fiscal year. Shares of Hormel fell 1.9 percent to $38.14, while Heinz shares rose 0.02 percent to $43.24. HEINZ SALES UP DESPITE FOREX Heinz earned $231.4 million, or 73 cents a share, in its fiscal second quarter, ended October 28, down from $276.7 million, or 87 cents per share, a year earlier. The previous year’s results included a sizable gain from currency hedging. Earnings of 76 cents per share from continuing operations topped analysts’ average forecast of 69 cents, according to Thomson Reuters I/B/E/S. Sales rose 2.5 percent to $2.67 billion, ahead of analysts’ forecasts. Heinz said foreign exchange cut sales by 1 percentage point. JP Morgan analyst Terry Bivens said he was disappointed by Heinz’s 4.1 percent volume decline, particularly the weakness in North America, where volume fell 8 percent. Heinz attributed some of that fall to comparisons from a strong showing a year ago, when retailers stocked up before the company raised prices to help offset what were soaring commodity costs. Heinz expects to see meaningful volume growth in the current quarter, Chairman and Chief Executive William Johnson said during a conference call. He said Heinz plans to increase marketing spending by at least 15 percent this year. Heinz now expects to earn $2.72 to $2.82 per share this year, up from a previous view of $2.60 to $2.70. Analysts expected a profit of $2.75 per share. It still expects 2010 sales growth of 4 percent to 6 percent, excluding the impact of currency fluctuations.  Continued… See original here: Heinz, Hormel optimistic about sales in 2010

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FOMC MINUTES

24 November 2009

No big surprises in today’s FOMC minutes.  The Fed sees the economy rebounding and will remain accommodative.  I did find this line somewhat amusing, however: “As in June, nearly all participants judged the degree of uncertainty surrounding their projections of output growth and unemployment as higher than historical norms.” Ben Bernanke’s already broken crystal ball is even more cloudy than usual.  That likely means further dollar devaluation and ultra low interest rates until we recreate the next great financial crisis.  Ben’s reactive  approach continues…. Read the original post: FOMC MINUTES

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Merkel waiting for ‘thank-you letter’ from GM

24 November 2009

BERLIN (AFP) – German Chancellor Angela Merkel said Tuesday she was expecting a “comprehensive thank-you letter” from General Motors for huge loans to keep the auto maker’s Opel unit afloat, which she said had now been repaid. “I can tell you that the last funds (received by) General Motors have been paid back, which means that the Opel operation has not cost the German taxpayer a cent,” Merkel said in a speech in Berlin. She added with a smile that she expected “a comprehensive thank-you letter from General Motors in a few years,” a comment that prompted cheers from the crowd of business leaders she was addressing. And she defended her decision to offer the 1.5-billion-euro (2.2-billion-dollar) loan to the Detroit-based car giant, saying: “It was absolutely right … to build a bridge.” Earlier this month, Merkel said that Opel would have been finished without Berlin’s loans. “Without our involvement there would be no Opel today,” Merkel told the Frankfurter Allgemeine (FAZ) daily. “We secured Opel’s chances of survival.” The loan had been due to be repaid by November 30. GM agreed in September to sell a majority stake in Opel, which includes Vauxhall in Britain, to Canadian auto parts maker Magna International and Russian state-owned lender Sberbank. But it later pulled a handbrake turn on the deal, deciding instead to keep the loss-making unit and restructure it itself, with the potential loss of thousands of jobs across Europe. It has not yet said where the jobs will be cut and which plants will be closed, leaving GM’s 50,000 employees across Europe fearing for their jobs. The u-turn infuriated Germany and Merkel, who had invested a lot of capital, both political and financial, in the deal with Magna-Sberbank. Germany had offered a total of 4.5 billion euros’ worth of state aid for the deal, including the 1.5-billion-euro loan and three billion euros in state loan guarantees. The news was all the more embarrassing for Merkel as it broke during her recent official visit to the United States. However, in a boost for Merkel and German Opel employees, GM Europe’s interim head Nick Reilly said earlier Tuesday the firm expected to keep open its plants in Bochum and Kaiserslautern in western Germany. The Bochum plant, employing almost 5,200 people near Essen will remain “an important location in the future,” Reilly said after talks with the premier of the German state of North Rhine-Westphalia where the site is located. Astra and Zafira cars are assembled at Bochum, which also makes axles and gearboxes, according to Opel’s website. It is one of four Opel plants in Germany, employing between them around 25,000 people. Reilly later added that Kaiserslautern, where a further 3,300 people are employed, “will play an important part in the future of Opel.” The GM boss also said that GM would on Wednesday present its concrete plans for the unit, which are expected to result in a 20 to 25 percent cut in production capacity and the loss of between 9,000 and 9,500 jobs. GM is seeking roughly 3.3 billion euros in financing from European governments. A GM spokesman said the plan would be discussed with union representatives and relevant governments before it was made public. German magazine Spiegel said the company had received offers of 400 million euros from Britain and between 300 and 400 million euros from Spain, as well as proposed tax breaks from Poland. Following a meeting of top finance ministry officials and GM executives in Brussels on Monday, the European Commission said that nations affected had decided not to make formal commitments before a further meeting on December 4. The rest is here: Merkel waiting for ‘thank-you letter’ from GM

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UPDATE 1-Sweden says private buyer only option for Saab

24 November 2009

* Sweden says will not own auto assets * Says Saab must find another buyer * Says can help with loan guarantees, rescue loan (Adds further ministry comment) By Nick Vinocur STOCKHOLM, Nov 24 (Reuters) – Sweden effectively ruled out a state bailout of GM’s [GM.UL] loss-making Saab unit on Tuesday after tiny luxury car firm Koenigsegg pulled out of a bid for one of the Nordic country’s best-known automobile brands. “You can’t, by state aid, keep a company ongoing, if you don’t have any chance for a competitive company,” Joran Hagglund, state secretary at Sweden’s Industry Ministry, told reporters. “That can only be assured by a private owner who really is familiar with the market conditions.” Earlier on Tuesday, Koenigsegg pulled out of its planned purchase of Saab, which has estimated it would lose around 6 billion Swedish crowns ($865 million) in the 2008-2009 period. [ID:nN2418890] Hagglund, however, did not rule out all support for Saab – if it can find another private buyer. He said the Swedish government would not own assets in the automotive industry. “But we can facilitate with loan guarantees and we also have this tool of a rescue loan with very hard conditions,” he said. “We are willing to discuss that with any potential buyer for Saab.” The centre-right government said in December last year it would provide up to 20 billion crowns in credit guarantees and a further 5 billion crowns in emergency loans to the auto industry. Finance Minister Anders Borg said at the time that the funds would be allocated with the aim of ensuring local manufacturers’ research and development projects, as well as production, remained in Sweden. IF Metall union representative Stefan Lofven said it was not only Saab’s production that was at risk. “It is about the thousands of employees in the supplier chain and even more in other sectors that are dependent on Saab,” he said. ($1=6.934 Swedish Crown) (Editing by Jon Loades-Carter) ((simon.c.johnson@reuters.com; Reuters Messaging: simon.c.johnson.reuters.com@reuters.net; tel: +46 8 700 1045)) See the original post here: UPDATE 1-Sweden says private buyer only option for Saab

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US Afghan buildup may involve brigade per quarter (at Reuters)

24 November 2009

* Afghanistan can “absorb” one combat brigade per quarter * Buildup could stretch into 2011 By Adam Entous WASHINGTON, Nov 24 (Reuters) – The Pentagon envisages carrying out President Barack Obama’s anticipated troop buildup in Afghanistan gradually at a pace of about one brigade per quarter, U.S. officials said on Tuesday. The first large-scale brigade under the expected buildup, accompanied by support units, could arrive before spring, when fighting typically picks up. A top priority for Pentagon war planners is reinforcing troops in southern Afghanistan around Kandahar, a key Taliban stronghold. But officials, speaking on condition of anonymity, said Afghanistan’s crumbling infrastructure would make it difficult for the Pentagon to field and equip more than a single brigade every three months, or approximately four a year. That means a large buildup of forces in Afghanistan could stretch well into 2011, depending on how many additional troops Obama decides to send and what types of units get deployment orders, officials briefed on the deliberations said. Pentagon Press Secretary Geoff Morrell declined to comment on specific troop levels but said of any prospective buildup: “This will not be done overnight… This is going to take some time to deploy additional forces to Afghanistan, if that is the route we take.” Brigades range in size but generally include 3,500 to 4,000 troops. They can swell to over 5,000 troops if other support units are attached to them. Marine brigades can be larger. Key members of Obama’s national security cabinet, including Defense Secretary Robert Gates, favor a gradual U.S. increase of 30,000-plus troops, officials said. The deployment of thousands of additional U.S. trainers could boost that number to 35,000 or more, but estimates vary widely. Other White House advisers have been pushing behind the scenes to keep the number closer to the 20,000-range with a focus on training Afghan security forces, officials said. Pentagon officials said new units could begin arriving within a few months but logistics on the ground would make it difficult to send large brigades in quick succession. The antiquated infrastructure there is more of a hurdle to deploying forces than it was in Iraq where a U.S. troop buildup helped reduce violence. “The country lacks staging bases, air fields, roads. It’s just harder to get people and things going,” one U.S. military official said. The official said the Pentagon’s “thumbnail” estimate was that U.S. and NATO forces in Afghanistan can “absorb” about one additional brigade, plus so-called “enablers,” per quarter, but that the speed of the deployments could vary depending on factors like the types of units involved. Enablers include transport support, mine detection and clearance units and medical staff. The U.S. military has been stretched thin by wars in Iraq and Afghanistan, but the Pentagon has told the White House that enough forces are available to begin the Afghan buildup, playing down any link to a planned U.S. drawdown in Iraq.  Continued… See original here: US Afghan buildup may involve brigade per quarter (at Reuters)

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UPDATE 1-Agrium expands retail presence in Texas, New Mexico

24 November 2009

* Says has bought 24 retail outlets from Agriliance * Terms of the transaction not disclosed TORONTO, Nov 24 (Reuters) – Canadian fertilizer maker and agricultural products retailer Agrium Inc ( AGU.TO ) said on Tuesday it has expanded its retail operations in Texas and New Mexico with the acquisition of 24 retail outlets from Agriliance. The terms of the transaction were not disclosed. “We are committed to deliver on our strategic growth objectives of doubling the size of our retail business, and this acquisition is a reaffirmation of that commitment,” Agrium Chief Executive Mike Wilson said in a statement. The company also reaffirmed its commitment to acquiring rival fertilizer maker CF Industries ( CF.N ). CF has been fending off Agrium’s overtures since February and is itself locked in a hostile campaign to acquire U.S. fertilizer maker Terra Industries ( TRA.N ). Agrium’s roughly $5 billion bid for CF is contingent on CF dropping its takeover bid for Terra. [ID:nN23240167] (Reporting by Euan Rocha ; editing by Peter Galloway) ((euan.rocha@thomsonreuters.com; +1 416 941 8185; Reuters Messaging: euan.rocha.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved View original post here: UPDATE 1-Agrium expands retail presence in Texas, New Mexico

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RISK AVERSION TAKES A BACK SEAT

24 November 2009

Tough words from Chinese bank regulators sent the Shanghai Index toppling 3.5% last night and also sent the dollar soaring as investors poured out of the risk trade.  The dollar carry remains a focal point of the rally.  Today’s FX View from IB : A slew of overnight woes concerning the health of banks around the world was limited in its support for the U.S. dollar. One year ago that evidence would have been enough to raise the heartbeat of the bears and send the pre-market futures down by 2%. Today, equity index futures continue to point to another positive North American session and the net impact is to provide a prop for the euro rather than the U.S. dollar. The euro also rose after the strongest reading for 15 months in a poll of investor sentiment. The euro is back to unchanged on Monday’s close at $1.4975. Asian markets felt the full impact of a fresh health-scare for Chinese banks. Shanghai stocks slumped 3.5% overnight after the mainland banking regulator warned banks to meet industry capital requirements or else be prepared to face its sanctions. According to media reports, a source with knowledge of the plans says that at least four Chinese lenders have submitted capital raising plans to regulators. An S&P report used in-house metrics to look at risk-adjusted capital ratios of European banks and served up a warning to several houses including UBS, Allied Irish and BBVA. In the meantime, Lloyds Banking Group announced terms of its attempted largest-ever domestic rights issue with a near-60% discount to where its shares are trading. Finally, WestLB – the state-owned regional German lender is reportedly going to be allowed to fail by its majority owners according to a major Frankfurt-journal. The bank said later that it is in discussions with SoFFin, the German financial market stabilization fund to isolate its toxic assets. Yet while all of the above continues to unwind negative news about the health of the financial sector we have to point out that as much as it is newsworthy today, it’s hardly new news. So some major banks are enacting plans to raise capital. Isn’t this a good thing? It is in our minds. Failure to accomplish the feat could be taken as a negative in the event that these entities fail to attract fresh cash and at the same time prevailing investors walk away. Hence our headline today that risk aversion is taking a back seat. The euro rebounded from an overnight low at $1.4888 after a report showed that German business confidence rose in November to a 15-month high. The IFO institute’s reading of sentiment from 7,000 business executives came in strong with a reading of 93.9 and above the expected 92.5. Third quarter manufacturing demand has boosted prospects for growth especially at a time when inventories were allowed to slip. The most significant component of today’s report comes from the 98.9 reading for expectations about the future for the economy. This confirms what we note above that current perceptions reflect buoyancy after the measures aimed at dealing with the stability of the financial sector. While today’s warnings might be necessary to keep a tight rein on the financial sector, it is ultimately beneficial for the ongoing recovery process. The dollar continues to lose ground against the Japanese yen at ¥88.68 with the yen refusing to cede ground against the dollar after as the initial bout of risk aversion appeared to subside. It very much confirms that the dollar’s loss of status is set to continue. The British pound continues to pare earlier losses against the dollar and is up to $1.6583 from an overnight low at $1.6504. Bank of England data shows a modest rise in the number of mortgage approvals while lending to consumers and businesses dropped again. In a quiet Australian session the Aussie dollar came under some selling pressure, reacting quickly to the latest bout of risk aversion as investors continued to lighten the load somewhat on long Aussie positions. At 92.06 U.S. cents the Aussie is firmly off its overnight low of 91.55 cents. Source: IB Follow this link: RISK AVERSION TAKES A BACK SEAT

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Friends of NICU Fund-raiser Nets Enough to Help 250 Families with Sick and Premature Babies in Mercy Hospitals (Business Wire)

24 November 2009

FOLSOM, Calif.–(BUSINESS WIRE)–During the Celebration of Miracles — a fund-raising event hosted by Friends of NICU ( www.friendsofnicu.org ) — Charlie Garrido made a most generous gift as he bid on a lithograph signed by the Rolling Stones. After submitting the winning bid, he quickly donated the item back so that it could be reauctioned and generate more money for the cause. “My initial thought was ‘Cool, I won!’ but then I remembered the parents and children,” said Mr. Garrido. “So, I donated my hard-fought Rolling Stones lithograph back so that it could be reauctioned and thought ‘now we are all winners!’” When the evening ended, over $34,000 had been raised to help families who are dealing with indescribable fear and strain while their babies are in the NICUs (neonatal intensive care units) of Mercy hospitals in the Sacramento region. “The Celebration of Miracles was a magical evening that no one will ever forget. The outpouring of support and contributions were amazing,” said Elanie Purkis, founder of Friends of NICU. “We shared tears and smiles and generally came together to help families.” Courtney Dempsey, reporter/anchor from Good Day Sacramento CW31 emceed the dinner program. Dr. Robert Kahle, director of the Mercy hospital NICUs delivered a heartfelt speech about the challenges families face. Social worker Gigi Eskin-Norman explained how Friends of NICU contributions help families, some of whom must drive three hours from the far northern communities like Redding and Red Bluff to be with their critically ill babies. ECO:LOGIC Engineering ( www.ecologic-eng.com ), an engineering and consulting firm that designs and manages water and wastewater projects in the Western United States, was the title sponsor. A silent auction and live auction were the primary fund-raising activities of the night. The top selling item was a 5-day luxury vacation in Chicago. Other sponsors include: Sponsors: ECO:LOGIC Engineering ( www.ecologic-eng.com ) Gold Country Media ( www.goldcountrymedia.com ) California Family Fitness ( www.californiafamilyfitness.com ) Community Neonatology of Sacramento Folsom OB-GYN, Dr. Jeffrey Cragun ( http://folsomobgyn.com ) Greater Sacramento Pediatrics Associates Goddard Claussen Strategic Advocacy ( www.goddardclaussen.com ) Mainstay Business Solutions ( www.mainstaybusiness.com ) Mercy Foundation ( www.supportmercyfoundation.org ) OnPointNetwork ( www.onpointnetwork.com ) In-kind donors and premium silent auction donors: A Tale of Two Truffles ( www.ataleoftwotruffles.com ) ADG Designs ( www.adgdesigns.net ) The Christian DeWild Band ( www.myspace.com/christiandewild ) Dawn Roberts Photography ( www.dawnrobertsphotography.com ) Exquisite Events & Entertainment ( http://exquisitedjs.com ) J Harrison Public Relations Group ( www.JHarrisonPR.com ) Luke Benton Productions ( www.productionstrategies.biz ) Paint All Night Studios ( www.paintallnightstudios.com ) Pottery World ( www.potteryworld.com ) Friends of NICU operates under the auspices of the Mercy Foundation, all of the money raised goes directly to the families who need help. There are no overhead or administrative fees for this entirely volunteer-run, nonprofit organization. Note: Photographs and interviews with founders, donors and NICU families available upon request. See the rest here: Friends of NICU Fund-raiser Nets Enough to Help 250 Families with Sick and Premature Babies in Mercy Hospitals (Business Wire)

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UPDATE 1-Mexican telco Axtel eyes mobile phone market-CFO

24 November 2009

(Adds quote, wireless background, blocks for auction, stock quote) MEXICO CITY, Nov 24 (Reuters) – Mexican fixed-line telephone operator Axtel ( AXTELCPO.MX ) said on Tuesday it is considering entering the mobile phone market as it eyes upcoming frequency auctions that would help it expand its customer base. “The company’s intention is to become a full telecom provider,” Chief Financial Officer Felipe Canales told analysts during a conference call hosted by JPMorgan. “We are seriously considering entering the mobile services market.” Axtel, along with other small and big players, is waiting for the government to tender added capacity for wireless phone services. Mexico set preliminary terms for the frequency auctions on Monday in a renewed effort to boost competition in a market dominated by tycoon Carlos Slim’s America Movil ( AMXL.MX ) ( AMX.N ). The government will sell nine blocks of frequencies ranging from 1850 to 1990 MHz, as well as, seven blocks within the 1710 to 2170 MHz range. Monterrey-based Axtel ( AXTELCPO.MX ) said it would consider partnering with another company to tap the wireless market. Axtel shares slipped 0.25 percent to 12.18 pesos. (Reporting by Cyntia Barrera Diaz, editing by Leslie Gevirtz) ((cyntia.barrera@thomsonreuters.com: +52 55 5282 7153; Reuters Messaging: cyntia.barrera.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved Visit link: UPDATE 1-Mexican telco Axtel eyes mobile phone market-CFO

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UPDATE – US committed to completing India nuclear pact-Obama (at Reuters)

24 November 2009

(Adds quotes) WASHINGTON, Nov 24 (Reuters) – President Barack Obama told a joint news conference with Indian Prime Minister Manmohan Singh on Tuesday that he was committed to completing a bilateral civil agreement that would open up India’s potential $150 billion market in power plants. “I reaffirmed to the prime minister my administration’s commitment to fully implement the U.S.-India civil nuclear agreement, which will increase American exports and create jobs in both countries,” Obama said after talks with Singh at the White House. Singh echoed those words and welcomed the removal on curbs on U.S. high-tech exports to India. “The lifting of U.S. export controls on high-technology exports to India will open vast opportunities for joint research and development efforts,” he said. The 2005 civil nuclear deal that Singh signed with former U.S. President George W. Bush, ended the long nuclear isolation imposed on India after it tested an atom bomb in 1974. But several issues need to be cleared up before U.S. businesses including General Electric Co ( GE.N ) and Westinghouse Electric Co, a subsidiary of Japan’s Toshiba Corp ( 6502.T ), can compete for billions of dollars in new reactor agreements. India’s parliament has to debate a new law to limit U.S. firms’ liability in case of a nuclear accident. The United States has still not signed a nuclear fuel reprocessing agreement with India. (Editing by Sandra Maler ) ((paul.eckert@reuters.com; +1 202 789-8578; Reuters Messaging: paul.eckert.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved Read more from the original source: UPDATE – US committed to completing India nuclear pact-Obama (at Reuters)

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US data drags European shares lower; banks weigh (at Reuters)

24 November 2009

* FTSEurofirst 300 index closes down 0.7 pct * Banks fall; Lloyds gains after rights issue * Commods track crude, metal prices lower By Joanne Frearson LONDON, Nov 24 (Reuters) – European shares closed lower on Tuesday after data showed the U.S. economy grew at a slower rate than forecast in the third quarter and home prices in the United States rose less than expected in September. The pan-European FTSEurofirst 300 .FTEU3 index of top shares closed 0.7 percent lower at 1,016.66 points after rising to a high of 1,025.17 earlier in the session. The index has gained 57 percent since falling to a record low in early March and is up 22 percent for the year. “There has been some mixed economic data and the market has taken a more pessimistic view on it. Wall Street is going down with Europe in pursuit,” said Philippe Gijsels, strategist at Fortis Bank. “The market has been a little bit volatile but that is also probably because volumes are quite low. The U.S. is about to go into its Thanksgiving holiday weekend, so there are big swings in the market and that is what you are typically seeing today.” The U.S. economy grew at a slower pace than forecast in the third quarter, while Standard & Poor’s/Case-Shiller indexes showed home prices rose less than expected in September. [ID:nN23258482] [ID:nN24298560] But, U.S. consumer confidence edged higher in November after an unexpected drop in October, with fewer consumers expressing doubt about a worsening jobs market, according to a report. [ID:nN24300840] Banks featured among the biggest losers. HSBC ( HSBA.L ), BNP Paribas ( BNPP.PA ), Societe Generale ( SOGN.PA ), UBS ( UBSN.VX ) and Credit Suisse ( CSGN.VX ) were down 1.9 to 3.2 percent. LLOYDS GAINS But Britain’s Lloyds Banking Group ( LLOY.L ) gained 2.6 percent after it priced its record 13.5 billion pounds ($22.3 billion) rights issue at 37p per share, a smaller-than-expected discount, as it taps its shareholders for cash to avoid costly state support. [ID:nGEE5AM0R8] Energy stocks were under pressure as crude CLc1 slipped to $76 a barrel. BG Group ( BG.L ), BP ( BP.L ), Royal Dutch Shell ( RDSa.L ) and Total ( TOTF.PA ) were down 0.3 to 0.5 percent.  Continued… Read the original: US data drags European shares lower; banks weigh (at Reuters)

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Get Gold Exposure For Just $940 An Ounce

24 November 2009

RBC has calculated that gold-related shares are currently pricing in a long-term gold price of $940, according to a chart highlighted by FTAlphaville . While such excel-model calculations always need to be taken with a grain of salt, by RBC’s numbers Barrick Gold (ABX) appears as relatively under-valued. It would be interesting to see by what model RBC arrives at these valuations. Barrick, for example, doesn’t only produce gold. See the rest here: Get Gold Exposure For Just $940 An Ounce

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INSTITUTIONS TURN NEUTRAL ON THE RALLY, CONFIDENCE FADES

24 November 2009

After buying into the rally late last year, institutions have been selling into the rally since August according to the latest investor confidence survey from State Street.   At a reading of 100 institutions are no long allocating capital towards equities and have clearly moved to a more defensive posture since late summer.   Investors in Asia have turned decidedly more bearish as institutions reallocate capital from stocks to less risky assets.  The reading of 91.2 in the Asia represents a high level of pessimism regarding the recent move in equities.    This change in risk tolerance has also been evident in the underperformance of small cap stocks compared to large caps . The founders of the index, Ken Froot and Paul O’Connell had these comments on this morning’s reading: “Across all regions, institutional investors are largely treading water; neither increasing nor reducing their aggregate holdings of risky assets,” commented Froot. “However, the aggregate figures mask some country- and region-specific views. This month, for example, institutional investors aggressively pared their holdings in selected markets, such as Australia, while continuing to add to their emerging markets holdings. Overall, investors are displaying some caution about the current level of equity valuations, and a desire to see more evidence of real economic activity and aggregate demand, particularly in the US, before adding to equity exposures.” “European investors displayed some increased optimism this month, but elsewhere the evidence is that investors are in a consolidating mood,” added O’Connell. “There is an awareness that structural issues such as the US current account deficit, the Asian current account surplus, and the long-run decline of manufacturing employment will need time to be worked out. In the interim, governments continue to support demand, but investors have an eye on both the temporary nature of the stimulus, and its impact on the overall debt burden.” The big money is becoming skeptical of the rally. Along with the recent increase in insider selling this data becomes difficult to ignore particularly considering their prescience in allocating capital in late 2008 and early 2009. Original post: INSTITUTIONS TURN NEUTRAL ON THE RALLY, CONFIDENCE FADES

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European shares close lower; U.S. data weighs (at Reuters)

24 November 2009

LONDON, Nov 24 (Reuters) – European shares closed lower on Tuesday after data showed the U.S. economy grew at a slower rate than forecast in the third quarter and home prices in the United States rose less than expected in September. The pan-European FTSEurofirst 300 .FTEU3 index of top shares provisionally closed 0.6 percent lower at 1,017.87 points after rising to a high of 1,025.17 earlier in the session. The index has gained nearly 58 percent since falling to a record low in early March and is up 22 percent for the year. Banks featured among the worst performers. HSBC ( HSBA.L ), BNP Paribas ( BNPP.PA ), Societe Generale ( SOGN.PA ), UBS ( UBSN.VX ) and Credit Suisse ( CSGN.VX ) were down 1.9 to 3.2 percent. “There has been some mixed economic data and the market has taken a more pessimistic view on it. Wall Street is going down with Europe in pursuit,” said Philippe Gijsels, strategist at Fortis Bank. “The market has been a little bit volatile but that is also probably because volumes are quite low. The U.S. is about to go into its Thanksgiving holiday weekend, so there are big swings in the market and that is what you are typically seeing today.” The U.S. economy grew at a slower pace than forecast in the third quarter, while Standard & Poor’s/Case-Shiller indexes showed home prices rose less than expected in September. [ID:nN23258482] [ID:nN24298560] But, U.S. consumer confidence edged higher in November after an unexpected drop in October, with less consumers expressing doubt about the a worsening jobs market, according to a report. [ID:nN24300840] (Reporting by Joanne Frearson) ((joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved Visit link: European shares close lower; U.S. data weighs (at Reuters)

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TSX falls on commodities, but banks rise

24 November 2009

By Ka Yan Ng TORONTO (Reuters) – Toronto’s main stock index was lower on Tuesday morning due to weakness in commodity shares and evidence of a slow recovery in the U.S. economy. Strength in banking stocks stemming from firm Bank of Montreal quarterly results cushioned the fall. The top five spots the market’s list of risers were held by big banks. Bank of Montreal reported a higher-than-expected 16 percent increase in quarterly profit and said it was buying the Diners Club North America credit card business, a deal that would double its corporate card portfolio. BMO shares gained 0.5 percent to C$53.80. Toronto-Dominion Bank was up 0.27 percent at C$67.53. Resource shares were big decliners on Tuesday, led by a 1.7 percent drop in fertilizer company Potash Corp to C$118.25. Lower oil prices and a recent run-up in commodity stocks also put pressure on companies such as diversified miner Teck Resources , down 2.2 percent at C$36.55, and oil producer EnCana Corp , down 0.54 percent at C$55.60. “I think it’s just an overall sell off in the market today. It had a pretty nice run in some of these commodities so it was ripe for some profit-taking,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. At 10:40 a.m., the S&P/TSX composite index was down 25.50 points, or 0.22 percent, at 11,599.28, after opening higher. The U.S. economy grew more slowly than first thought in the third quarter, but house prices rose for the fifth straight month in September and U.S. consumer confidence was up in November, suggesting a slow economic recovery is still intact. “I think it just confirms that we’re in a slow recovery here. It’s good to see a positive but it wasn’t as positive as people were expecting,” Nakamoto said. ($1=$1.06 Canadian) (Editing by Peter Galloway) See the original post here: TSX falls on commodities, but banks rise

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