Early Edition December 30 2008 at 05:11 AM Harry Maurer
GMAC Gets $6 Billion Bailout
The U.S. Treasury will inject $6 billion into General Motor's former auto financing subsidiary. The deal is the first of new aid for auto-finance companies, which lend money to dealers and car buyers.
The Treasury bought $5 billion worth of GMAC shares, using part of the $700 billion financial rescue fund. It will also lend up to $1 billion to GM so that it can buy more common shares in GMAC.
Source: Detroit Free Press
Kerkorian Wipes Hands Clean of Ford
Billionaire investor Kirk Kerkorian sold all of his remaining 107 million shares of Ford Motor. He bought as much as 6.49% in Ford at an average share price of $7.10. He started selling his shares at an average share price of $2.43 in October, losing about $650 million.
Source: Los Angeles Times
Israel Declares "All Out War" on Hamas
Israel declared it was in an "all-out war" against Hamas as Israeli fighter jets bombed the Gaza Strip for a third straight day. Israel's Manufacturer's Association estimates that factories are losing $1 million a day from the Israeli-Palestinian conflict.
Source: BusinessWeek
HP Selling Printers in Iran
Hewlett Packard has been selling printers in Iran through a third-party distributor, Redington Gulf, undermining the U.S. economic boycott of Iran. Then-President Bill Clinton imposed a boycott on Iran in 1995 to pressure the country from funding Hamas and Hezbollah militant groups and halt its nuclear weapons program.
Source: Boston Globe
Japan Stocks Finish 2008 with Worst Year Ever
Japan's benchmark Nikkei 225 Stock Average closed 2008 down 42%, its worst year ever after Lehman Brothers and Bear Stearns collapsed and the strong yen ate away at Japanese companies' earnings. This year's Japanese stock market eclipsed the 39% drop in 1990, after Japan's "bubble" economy of the 1980s popped.
Source: Bloomberg
China Eastern Gets $1 Billion Gov't Bailout
China Eastern received a $1 billion capital injection, double the bailout originally announced weeks ago, from the Chinese government to help the Shanghai-based airline survive a downturn in passenger demand and huge losses from being on the wrong side of hedges.
Source: Xinhua News Agency
Dow Chemical Ratings Cut after Kuwait Scraps Joint Venture
Ratings agencies Standard & Poor's and Moody's Investor Service cut their ratings on Dow Chemical after Kuwait pulled out of a $17.4 billion deal to form a joint venture with the largest U.S. chemical company. Dow's shares plunged 19% to $15.32, its lowest price in 28 years.
Source: Bloomberg
IMF Calls for Large Stimulus Package
The International Monetary Fund urged governments around the world to make large, but carefully designed stimulus packages to help pull the global economy out of a recession. In a research paper, the IMF said across-the-board tax cuts or bailouts of auto or other troubled industries are likely to waste money. IMF chief economist Olivier Blanchard backed president-elect Barack Obama's $675 to $775 billion stimulus plan and approach of using targeted tax cuts
Source: IMF web site
A Silver Lining in Real Estate Downturn: Fewer Divorces
The crashing real estate market is making divorce more complicated and more expensive. Some divorce lawyers say business has slowed. Some couples are deciding to stay together because there are no assets left to divide.
Source: New York Times
Facebook Faces Protests over Breastfeeding Photos
Facebook has removed two photos of Facebook user Heather Farley breastfeeding and warned that her account would be closed if another photo was removed. A small group of people organized by Farley protested in front of Facebook's Palo Alto headquaters last Saturday.
Source: San Jose Mercury News
U.S. Population Hits 305 Million
The U.S. population is expected to hit 305,529,237 on Jan. 1, 2009, the U.S. Census Bureau said.
Source: Atlanta Journal-Constitution
Conversation of the Day: What Does LinkdedIn Get You?
Reader Marianne Paskowski writes: "LinkedIn members who don't make their contacts public? Poachers! They want your contacts, but won't share."
Read the Story and Tell Us What You Think
Hot Topic on the Business Exchange: Bernard L. Madoff
Bernard L. Madoff, a former chairman of the Nasdaq Stock market and founder/owner of Bernard L. Madoff Investment Securities LLC, was arrest by federal agents after his sons turned him in for running what Madoff called "giant Ponzi scheme. Lauren Young and others are sharing their insights.
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