Fed: Write Off 2009

matthew.yeomans — Wed, 07 Jan 2009 08:44:17 +0000

No relief in sight. That's the prognosis from the December Fed meeting, revealed just yesterday, showing we're in for a longer and nastier recession than first feared. The bleak economic outlook appeared to even take some Fed officials by surprise.

Auto Industry Growth at Dead End

matthew.yeomans — Tue, 06 Jan 2009 09:46:12 +0000

The U.S. car market ended 2008 on a dire note, according to new data released yesterday. Both the Wall Street Journal and the New York Times report that GM, Ford, and Toyota saw U.S. sales drop more than 30 percent last month, "capping one of the worst years for the industry in decades and solidifying the view that more turmoil lies ahead in 2009," writes the WSJ.

Obama Readies Massive Tax Cuts

bernhard.warner — Mon, 05 Jan 2009 08:27:21 +0000

The Wall Street Journal and New York Times lead off their business coverage today with word that President-elect Barack Obama's economic recovery plan will include a larger-than-expected tax cut of roughly $300 million for companies and individual taxpayers. The tax breaks don't end there.

Russia Cuts Off the Gas

james.ledbetter — Fri, 02 Jan 2009 10:45:15 +0000

The Wall Street Journal leads this morning with news that Russia has cut off the supply of natural gas to Ukraine, reflecting what the paper calls "a jolting reminder of a 2006 cutoff that spread fear in Europe about Moscow's tightening grip on energy supplies." The dispute between Ukraine and Russian gas monopoly OAO Gazprom has been brewing for some time, with Russia trying to exact a higher price and demanding payment for previous shipments that Ukraine insists it has already made.

House Price Hell

james.ledbetter — Wed, 31 Dec 2008 09:37:25 +0000

Tuesday was not a happy day for data on the U.S. economy. One of the major ways of measuring housing prices—the Case-Shiller index—"fell 2.2% in October from September and 18% from a year earlier, the sharpest declines in the data's two-decade history," as the Wall Street Journal crisply summarized it.

Treasury Becomes the Auto Pilot

james.ledbetter — Tue, 30 Dec 2008 10:52:18 +0000

It gets harder and harder to distinguish between news about the U.S. auto industry and news about the economy itself. The Bush administration, which not long ago resisted using the Treasury Department bailout program to rescue the automobile industry, has now extended its support to failed automakers by tossing $6 billion at GMAC, the ailing financial arm of General Motors.

Kuwait Gets Cold Feet

james.ledbetter — Mon, 29 Dec 2008 11:02:21 +0000

Kuwait has pulled out of a multibillion-dollar deal with Dow Chemical, a move that the Wall Street Journal calls "the latest sign of how roller-coaster energy prices are whipsawing the global economy." The planned joint venture had been announced a year ago and was set to close Thursday. Under its terms, a state-owned petroleum company was to pay Dow Chemical $7.5 billion for a 50 percent stake in various chemical companies used to make plastics.

Retail's Holiday Hangover

chadwick.matlin — Fri, 26 Dec 2008 10:42:16 +0000

Christmas is over, which means we can really start to be pessimistic about the retail industry. The Wall Street Journal gets things started by reporting that retail sales have fallen far beyond analysts' muted expectations. November sales were down 5.5 percent compared to last year, and December's numbers were down by 8 percent. This "despite a flurry of last-minute shoppers lured by the deep discounts," according to the WSJ.

Madoff's European Web Widens

karim.bardeesy — Wed, 24 Dec 2008 11:05:38 +0000

The grisly discovery of yesterday’s suicide by U.S.-based French banker Thierry Magon de La Villehuchet—co-founder of Access International Advisors, who may have incurred as much as $1.5 billion in Madoff-related losses—features prominently in a number of business publications today. But behind that story, new details continue to emerge. The European fallout includes Union Bancaire Privée, a private Swiss bank with $700 million of client money invested.

Who Was Supervising the Thrift Supervisor?

karim.bardeesy — Tue, 23 Dec 2008 10:54:16 +0000

More allegations of wrongdoing in financial services. This time it's a government agency where the fishy stuff was happening—the Office of Thrift Supervision, which regulates savings and loans and savings banks, has removed Darrel Dochow as its Western director. Why?

More Hands Out

karim.bardeesy — Mon, 22 Dec 2008 11:08:17 +0000

“The contagion spreads”: familiar headlines since September, and yet Monday’s papers show some unlikely quarters for hand-wringing and pleading. For instance, did you know that big office buildings and sprawling office parks are looking for government support, too? Yes, citing lobbying efforts and a letter to Henry Paulson, the Wall Street Journal says that property developers want to get a piece of the $200 billion program to help car, student, and credit-card loan providers.

Could Detroit Get Bailout and Bankruptcy?

bernhard.warner — Fri, 19 Dec 2008 09:32:40 +0000

Are they or aren't they? That's the big question this morning hovering around the on-again/off-again merger talks between General Motors and Chrysler. On Thursday, the Detroit Free Press, among others, quoted GM as saying, no, negotiations have not resumed.

GM, Chrysler Back on Track?

bernhard.warner — Thu, 18 Dec 2008 09:08:00 +0000

General Motors and Chrysler may be getting hitched after all. On a day of plenty of auto-sector news, the Wall Street Journal breaks the scoop that the two struggling automakers have reopened merger talks. The new development is that "Chrysler owner Cerberus Capital Management LP has signaled its willingness to give away part of its ownership in the auto maker" to get the deal done, the newspaper writes, citing people in the know.

Fed Cuts to Zero. Now What?

bernhard.warner — Wed, 17 Dec 2008 09:29:45 +0000

We've hit a record low. The federal funds rate is now at "near zero," the Wall Street Journal and Financial Times both blare, leading off their business coverage this morning with the historic cut by the Fed on Tuesday. And the Fed is not finished there.

Who Wasn't Dealing With Bernie Madoff?

bernhard.warner — Tue, 16 Dec 2008 09:05:10 +0000

Perhaps the question we all should be asking about the alleged $50 billion Bernard Madoff fraud is: Who hasn't been duped? Reporters from Tokyo to West Palm Beach are still piecing together just how vast the damage will be, who is at risk, and for how much. The globe-spanning list of Madoff victims keeps growing, the BBC reports this morning.

Madoff Fallout Pollutes Europe, Asia

matthew.yeomans — Mon, 15 Dec 2008 08:48:26 +0000

The fallout from Bernard Madoff's alleged $50 billion Ponzi scheme just keeps getting worse. According to the Wall Street Journal, European banks, including Spain's Grupo Santander SA and France's BNP Paribas, are heavily exposed to the fraud, for roughly $3.5 billion.

Markets Crash on Auto Blowout

matthew.yeomans — Fri, 12 Dec 2008 09:02:51 +0000

Bailout Faces Republican Roadblock

matthew.yeomans — Thu, 11 Dec 2008 09:48:09 +0000

Lawmakers are going to make General Motors and Chrysler sweat this one out. On Wednesday, the House approved a $14 billion bailout for the struggling automakers, but the real showdown looms in the Senate, which the New York Times, Wall Street Journal, and BusinessWeek lead off their coverage with today. Despite frantic lobbying by the White House, some high-level Republicans in the Senate aren't buying the plan.

Congress, Will You Drive My Car?

bernhard.warner — Wed, 10 Dec 2008 09:25:44 +0000

Detroit can breathe a little easier today. The long-predicted bailout of the automotive industry heads to the House of Representatives for a vote, possibly as early as today, after lengthy negotiations concluded yesterday, the Washington Post and New York Times report this morning.

Uncle Sam To Take the Keys?

bernhard.warner — Tue, 09 Dec 2008 08:45:33 +0000

Details of the federal bailout plan for the auto industry are emerging this morning, and the stakes are high. According to the Wall Street Journal, under the legislation being drafted, the U.S. government will gain "a substantial ownership stake in the industry and a central role in its restructuring" in exchange for emergency loans for the Big Three automakers.

GM Chief Heading for a Crash?

matthew.yeomans — Mon, 08 Dec 2008 08:31:36 +0000

First the good news for General Motors CEO Rick Wagoner. After weeks of industry pleading, it looks likely that lawmakers will drive through a short-term $15 billion auto loan, writes the Detroit News. That will save GM and Chrysler from hitting the wall for at least a couple of months.

The Big Three Plea

matthew.yeomans — Fri, 05 Dec 2008 10:11:45 +0000

They came by hybrid carrying pledges to work for just a $1 a year, and still the Big Three bosses might leave Capitol Hill empty-handed.

Cheap Mortgages to the Rescue?

matthew.yeomans — Thu, 04 Dec 2008 10:11:24 +0000

In his final weeks on the job, Treasury Secretary Henry Paulson is going back to the root of the economy's problems: the housing market. According to the Wall Street Journal, Paulson is mulling a plan to revitalize slumping home sales by squeezing lending rates to affordable levels for new homebuyers. How affordable?

Big Three Lost in Fast Lane

matthew.yeomans — Wed, 03 Dec 2008 10:08:17 +0000

A sum of $34 billion. That's the new magic number the General Motors, Ford, and Chrysler CEOs have calculated they'll need from Uncle Sam as part of a "turnaround plan" to continue operating, the Wall Street Journal, New York Times, and Detroit Free Press write, leading off their business coverage today.

Embracing Recession

matthew.yeomans — Tue, 02 Dec 2008 10:04:17 +0000

It's official: The U.S. economy has been in recession since last December, according to new figures from the National Bureau of Economic Research.

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