Late Edition December 02 2008 at 02:46 PM Chi-Chu Tschang and Harry Maurer
What Ford Will Seek
In a preview of the plan it will present when Detroit's honchos appear before Congress on Dec. 4 and 5, Ford said it's seeking a bridge loan of up to $9 billion and figures it can return to breakeven or profitability in 2011. Ford said it will invest $14 billion in the U.S. on advanced technology and fuel efficiency over the next seven years and aims to create a family of hybrids, hybrid plug-ins, and battery-powered vehicles.
Perhaps stung by the criticism when the CEOs of the Big Three all flew to Washington recently on private jets, Ford added that it will sell its five corporate planes and explore the sale of Volvo. And Ford chief Alan Mulally said that if the company drew on the federal bridge loan, he'd work for $1 a year. Meanwhile, Ford, General Motors, Honda, and Toyota all reported today that sales fell more than 30% in November.
Source: Washington Post, Wall Street Journal
Jonathan Miller Wants Yahoo!
The Wall Street Journal reports that former AOL chief Jonathan Miller is trying to raise money to buy all or part of the troubled Web portal. Miller has been talking to private equity firms and sovereign funds for months. Miller is said to believe he could buy the company for $28 billion to $30 billion, but raising that kind of money these days promises to be extremely difficult.
Source: Wall Street Journal
GE Looks Anemic
The economic bellwether warned that fourth-quarter profits will come in at the low end of its previous estimates and said it would shrink its finance arm, GE Capital. The company will book charges of $1 billion to $1.4 billion on GE Capital's restructuring. On the upside, it will continue paying its dividend in 2009 and is committed to preserving its AAA credit rating. Investors cheered, driving the stock up nearly 11% in midafternoon trading.
Source: BusinessWeek
BA Is Wooing Qantas
British Airways, which is already pursuing a merger with Spain's Iberia, is also talking with Qantas. Such a deal, which faces regulatory hurdles in Australia, would create the world's first multi-continent airline group. The industry is consolidating fast in the face of the global downturn.
Source: CNNMoney.com
Foreign Bourses Follow the Dow Down
The day after a 680-point, or 7.7%, plunge for the Dow Jones average in the U.S., stocks in Asia and Europe picked up the mantle and slid on growing concerns over the global economy. Despite interest rate cuts in Japan and Australia, markets there fell 6.4% and 4.2%, respectively. European indexes were trading down in the range of 1% in the morning, led into the red by banks and commodity producers. The negative sentiment was fed by an array of reports from around the world showing steep declines in manufacturing activity and business sentiment. A report from the National Bureau of Economic Research on Dec. 1 revealing that the U.S. entered recession a year ago spurred the bearish mood on Wall Street yesterday.
Source: New York Times/Reuters, Bloomberg
Economic Signs Darken, as Bernanke Talks More Cuts
The NBER report that sent U.S. markets skidding Dec. 1 suggests the economic downturn will be deeper and longer than previous forecast, and already ranks as the longest since 1982. Federal Reserve Chief Ben Bernanke indicated in a speech that he is inclined to continue cutting interest rates, to an unprecedented level below 1%.
Source: Washington Post, Times of London
Democrats Crafting $500 Billion Aid Package for States
House and Senate Democrats are preparing a stimulus package worth up to $500 billion to boost infrastructure, health care, and alternative energy in the states. They hope it can be signed by President-elect Barack Obama soon after he takes office.
Source: New York Times
Goldman Faces Loss of $2 Billion for Quarter
The white-glove Wall Street firm, which has so far largely escaped the damage wreaked on its rivals, is set to announce its first quarterly loss since going public in 1999--and it could be as much as five times greater than analysts had predicted.
Source: Wall Street Journal
The Downturn Hits Green Energy
When oil was expensive and credit flowed freely, Europe's alternative energy boomed. Now, with financing scarce and the cost of renewables at a disadvantage, the industry faces a serious slowdown and shakeout.
Source: BusinessWeek
China Fears Reverse Migration
As hundreds of thousands of idled urban migrant workers go home to rural parts of China, the world's most populous nation worries that returnees could strain its already stretched countryside social services.
Source: Wall Street Journal
Boeing Engineers Approve New Contract
The aircraft maker's second-largest union, which represents white-collar engineers and technicians, voted to accept a new four-year contract offer, avoiding a potentially damaging second strike against Boeing this year.
Source: Reuters
Conversation of the Day: Flying the A380 Jumbo Jet
Reader Amit Choudrhy writes: "The plane's great. Now, all Airbus needs to do is sell enough of these to break even, which is the tough part."
Read the Story and Tell Us What You Think
Hot Topic on the Business Exchange: Telecom Industry
The telecom industry continues to adapt and evolve with new technologies and ways to communicate. Dan Roberts and others are sharing their insights.
No comments:
Post a Comment
Keep a civil tongue.