From ClusterStock:Everyone has now gotten used to the idea that we’re “deleveraging.”
But what do we think that means? We think it means that banks,
consumers, companies, and the government have to cut down their debt a
bit.
Actually,
A big rally this week has salved something for the bulls, but October 2008 is going to go down as one of the worst months in financial market history.Heading into Friday, the Dow was down 15.4% for the month, on track for the 11th-worst
Conventional wisdom is that a President Barack Obama will be bad for the stock market. Some even attribute the market’s recent weakness to fear of an Obama victory, specifically citing his plans to raise taxes on capital gains and on incomes above $250,00
GM went trick-or-treating early but it looks no one answered the door. Either that, or its trick wasn’t very good. Either way, it appears to have come up empty-handed in its bid for government goodies.
The much-talked about General Motors-Chrysler merger is off the table for now. Reuters is reporting that talks hit an impasse after the Bush administration said “no” to funding for the deal, citing three people with direct knowledge of the talks.
GM had approached the Treasury in recent days about support for the merger through some $10 billion in new funding that would have included taking an ownership stake in the merged company, people familiar with the talks have said.
A Bush administration official told Reuters the administration was not negotiating direct aid for the deal.
Maybe GM will have better luck after Nov. 4. Halloween will be over but Christmas isn’t too far away.
More deals of the day:
** Britain’s second biggest bank Barclays Plc is to raise 7.3 billion pounds ($12.1 billion) from investors from Qatar and Abu Dhabi and others to allow it to avoid taking government rescue cash, it said. The bank said it is raising up to 3.5 billion pounds from Sheikh Mansour Bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family. That could give him a 16.3 percent stake in the bank.
** UK life insurer Friends Provident said it is abandoning the sale of wealth management unit Lombard, nine months after putting the business on the market, and reported a worse than expected drop in nine-month sales.
** Blacks Leisure Group, the British outdoor clothing retailer will consider selling its underperforming Boardwear business, made up of 57 Freespirit, Mambo, Animal and O’Neill stores, its CEO said.
It’s not the economy. It’s not John McCain versus Barack Obama. It’s not even a business issue. It’s Proposition 8: a California proposition that would ban same-sex marriage. The Valley has long supported gay rights and tomorrow about 50 of its leaders
Suddenly, it seems, everything’s coming up roses for the stock market, which continued its recent rebound Thursday. The worst GDP report since 2001? Well, the 0.3% drop wasn’t as bad as feared. SF President
“Everywhere we look we’re finding really great bargains,” says Whitney Tilson, managing partner of hedge fund T2 Partners and noted value investor.In part 1 of my interview with Tilson, we discussed his “sleep easy” portfolio of blue c
Having laid out a “sleep well” portfolio in part 1 of our interview, here Whitney Tilson offers recommendations of blue-chips for more adventurous investors.The money manager’s picks, Target and American Express, are in decidedly out-of-favor se
A week and a half has passed since Exelon Corp made its unsolicited bid for NRG Energy Inc. But NRG still kept mum on the offer in both its third-quarter earnings pres release and its conference call with investers on Thursday morning.
“Our board is continuing to review the proposal,” Nahla Azmy, NRG’s director of investor relations said on the conference call. ”With that said, please keep in mind the purpose of today’s call is to discuss our third quarter performance and thus we will will not be making any formal remarks nor commenting on any aspects of Exelon’s proposal until an official board response has been issued.”
So what does the lack of action mean?
“We think this might indicate that NRG is looking at a variety of alternatives beyond simply accepting the offer or remaining a stand-alone company,” Wachovia analyst Samuel Brothwell said in a research note.
Or perhaps NRG is waiting to see whether Exelon – which has suggested it would make a hostile bid if it is rebuffed by NRG – plans to back up its words with action. Your move, Exelon?
Can’t handle the market volatility? Worries about your portfolio keeping you up at night? You’ve come to the right place.Whitney Tilson, managing partner of hedge fund T2 Partners and noted value investor, says investors have
Any regrets about the now-infamous birthday party, Steve?
That was the question asked by Fortune Magazine’s Andy Serwer at an intimate breakfast gathering at posh New York restaurant Per Se.
For those that have forgotten, Schwarzman’s 60th birthday party on Valentine’s Day in 2007, to which hundreds of guests were invited, featured British rocker Rod Stewart, comedian Martin Short, singer Patti LaBelle, two Harlem choirs and a marching band. It came to symbolize an era of excess — memories that some would now rather forget. Months later, the financial crisis hit and Blackstone’s stock plummeted. It is currently about a quarter of its June 2007 IPO price.
“Obviously, I wouldn’t have wanted to do that and become some kind of symbol of that period of time — who would ever wish that on themselves? No one,” said Schwarzman, when asked if he’d do it again.
Lazard’s Bruce Wasserstein, being interviewed by Fortune alongside Schwarzman, chimed in: “It was a great party”.
Schwarzman noted that his 61st birthday this year was muted. “61 is just fine. You notice it was quiet,” he said.
Stocks were rallying again early Thursday and recent action is again encouraging talk of a “bottom” following the market’s recent rout.