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2008/11/03

Obama Heads to Finish Line with Wide Lead

BusinessWeek Executive Summary
Your update of the most important business news from dozens of respected news sources, selected by the editors of BusinessWeek.

Early Edition November 03 2008 at 05:12 AM Chi-Chu Tschang and Harry Maurer

Obama Heads to Finish Line with Wide Lead

As the U.S. presidential election enters its final days, a new nationwide Gallup poll released Sunday showed Democratic candidate Barack Obama taking a 10-point lead over his Republican rival John McCain. Obama is tied or ahead in all 10 of the key battleground states, making a McCain victory look increasingly difficult.

A separate Wall Street Journal/NBC News poll pegged Obama's lead at 8 points, down from 10 a week from earlier but still at 51% of likely voters. McCain and his advisors have been hoping for a come-from-behind victory, but he hasn't led Obama in national polls since the financial crisis heated up in September.

Source: Financial Times, Wall Street Journal

What Happened to the Investor Class?

A new Reuters/C-SPAN/Zogby poll finds that this pillar of Republican support has shifted somewhat toward Obama. Some 50.4% of self-identified "investors" are now backing McCain, vs. 43.8% for his Democratic challenger, a drop from the Republican's 15-point advantage a month ago.

Source: BusinessWeek

Boeing Workers Return After 8-Week Strike

Workers at Boeing began returning to work on Sunday after members of the machinists union voted to end a costly eight-week strike that clipped profits and stalled deliveries.

Source: AP/New York Times

Panasonic Likely to Bid for Sanyo Electronics

Japanese electronics giant Panasonic, formerly known as Matsushita, is set to unveil a takeover of smaller rival Sanyo this week, in part to secure its position as a leading producer of lithium ion batteries for cars. Analysts welcome the move as a step towards long-overdue consolidation in the Japanese electronics business.

Source: Times of London

Persian Gulf Investor Leads Barclays Recapitalization

Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi's royal family, became the latest wealthy Persian Gulf investor to come to the rescue of an ailing Western institution when he helped lead an $11.6 billion recapitalization of Britain's Barclays on Friday. Meanwhile, on a tour of the Gulf, British Prime Minister Gordon Brown implored Saudi Arabia to help buttress the International Monetary Fund, which has been instrumental in recent bailouts for Iceland, Ukraine, Hungary, and Belarus.

Source: Wall Street Journal, AP/CNN Money

Societe Generale Profits Plunge 84% on Writedowns

Net earnings at France's third-largest bank, which early this year suffered from a rogue trading scandal, fell by 84% in the third quarter due to writedowns tied in part to the failure of U.S. investment bank Lehman Brothers.

Source: Bloomberg

Effectiveness of AIG Bailout Questioned

A number of financial experts now fear that the federal government's $143 billion effort to rescue troubled insurance giant American International Group may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing.

Source: Washington Post

Talks End Between Chrysler and Renault-Nissan

Sources close to Cerberus Capital Management, the private equity firm that took over ailing Chrysler last year, revealed over the weekend that they had ended discussions with Renault and Nissan about a possible deal, leaving a takeover by GM as the most viable remaining option.

Source: Wall Street Journal

South Korea Unveils $11 Billion Stimulus Plan

South Korea said on Nov. 3 that it will pump an extra $11 billion into its economy next year to help soften the impact of the global financial storm, which is beginning to hit exports, the country's economic lifeblood.

Source: Reuters

Pressure Mounts for EU and British Bank Rate Cuts

Monetary policymakers at the European Central Bank and Bank of England are facing growing pressure to cut lending rates when they meet this week amid growing indications of economic weakness in Europe.

Source: Financial Times

Emerging Signs of Distress for Smaller U.S. Telecoms

The telecommunications industry has been relatively immune so far to the economic slowdown. But now there are signs that companies other than giants AT&T, Verizon, and Comcast are feeling the pinch from weaker demand and tighter financing.

Source: Washington Post

Lewis Hamilton Takes Grand Prix: Now the Big Money

The Formula One star won the coveted Drivers' Championship by a whisker. His already powerful marketability is now likely to soar. Is he the Tiger Woods of auto racing?

Source: BusinessWeek

Conversation of the Day: Design and Customer Loyalty

Reader O. Santiago writes: "Outside US/Europe, Apple is far from keeping pace. Mac has become a fetish amongst graphic designers, and that has fueled most of the awe on Apple products."

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Hot Topic on the Business Exchange: Semiconductors

The world of semiconductors is extremely important. This topic talks about the news and trend in the semiconductor industry and covers the companies that create them. Olga Kharif and others are sharing their insights.

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