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Global Investing News: Bank of America (BAC), China Mobile (CHN), General Motors (GM), UBS AG (UBS), American International Group (AIG) and Eli Lilly & Co. (LLY)
BofA 1Q Profit Doubles; China Mobile Misses Estimates; GM Cutting 1,400 Salary Positions; UBS Selling Brazilian Unit; AIG Gets More Fed Funding; Leading Economic Indicators Fall More Than Forecast; Lilly Beats Estimates; Rubber Prices May Fall on Fading Auto Sales
- First-quarter profit for Bank of America Corp. (BAC) more than doubled, but a surge in troubled loans threw a wet blanket on the bank’s earnings report. So far, Bank of America has received $45 billion in government loans, and Chief Executive Kenneth Lewis said on a conference call that “we absolutely don’t think we need additional capital," Reuters reported.
- The world’s biggest wireless provider, China Mobile Ltd. (CHN),…
Main Street vs. Wall Street: And the Winner Is…
Last Sunday, Fed Chairman Ben Bernanke jumped into the Public Relations Politics foray when he appeared on 60 Minutes.
The political marketers were out in full force on this one. They did everything from the visit of Bernanke’s childhood home (which is now in foreclosure) to the close up of “Main Street” sign to the conversation on the street side bench in rural South Carolina. It was the perfect image of “I’m like you” kind of PR the government decision-makers are looking for right now.
They want to be trusted again. And they’re pulling out all the stops to get back into…
18Mar2009 | Q1 Publishing | 0 comments | ContinuedAIG Bonuses: Legalized Theft Has Found Its New Champion
Whatever happened to being paid for performance and rewarding competence? Have corporations and the present day slime that runs them become so corrupt that all hope for some kind of decency and moral leadership has become lost?
You see, there’s something to be said about recessions, or a more severe recession in this case. Anything bad that can happen — will happen. When the economy hums along, most people gain from the “rising tide that lifts all boats” theory, or at least they are able to keep their heads above water long enough to not feel compelled to say a…
16Mar2009 | Oxbury Research | 0 comments | ContinuedEconomic Experts to Obama: Focus on the Fundamentals
In sports, championship-caliber teams all have at least one characteristic in common: They’re able to focus on the fundamentals. With the U.S. unemployment rate jumping to its highest level in a quarter century in February, it’s become abundantly clear that that the U.S. recession is much deeper than President Barack Obama anticipated, meaning it’s likely that additional measures will be undertaken to arrest the slide and restart growth.
Many experts are now calling for the Obama administration to focus on the fundamentals – fundamental economics, that is. They want him to drop some of its ancillary pet projects – such as healthcare…
9Mar2009 | Money Morning | 0 comments | ContinuedWhere’s the Bailout Now?
The U.S. has been dishing out the bailout funds at a truly stunning pace. It wasn’t too long ago when Fannie Mae and Freddie Mac received those first capital infusions. Since then, so much money has been dolled out that it’s difficult to follow who got what money, and who the next recipient of government funds is going to be.
I want to take a look back into some of the specifics of the bailout, and where there at today.
Being that I mentioned Fannie and Freddie already, let’s start there. The GSE bailout package gives the U.S. government the option to…
11Nov2008 | Oxbury Research | Comments Off | ContinuedFederal Government Grants AIG a New Bailout Package
American International Group Inc. (AIG) got a $150 billion government rescue package – almost double the initial bailout deal of less than two months ago and the largest ever granted to a private U.S. company – as the ailing insurer continues to burn through its cash at an accelerating rate.
The New York-based AIG will get $40 billion of new capital from the U.S. Treasury Department’s $700 billion bailout package, to help offset the damage wreaked by four consecutive quarterly losses, including a third-quarter deficit of $24.5 billion that the company announced yesterday (Monday), Bloomberg News reported. The U.S. Federal Reserve also is slashing an…
11Nov2008 | Money Morning | Comments Off | ContinuedGovernment provides record aid package to AIG
By JEANNINE AVERSA
AP Economics Writer
(AP:WASHINGTON) In a record bailout of a private company, the government on Monday provided a new $150 billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.
The action, announced by the Federal Reserve and the Treasury Department, was taken as it became increasingly clear that an original financial lifeline thrown to AIG in September would be insufficient to stabilize the teetering company. All told, the moves boost aid to the company to more than $150 billion. Fed officials, however, expressed confidence that the money would be repaid to taxpayers.
The $40…
10Nov2008 | INO | Comments Off | ContinuedGlobal Investing Roundups
Symantec Upgrade; Monsanto Sees Credit for Crops; AIG’s Costly Retreat; Wells and Citi Extend Ceasefire; Pending Home Sales Climb; Crude Hits Lowest Level in 2008
- Symantec Corp. (SYMC) was upgraded to “overweight” from “neutral” by a JPMorgan Chase & Co. (JPM) analysts yesterday (Wednesday). "We are upgrading shares of Symantec… as the shares have fallen to a value less than what we believe the maintenance is worth, and investors are essentially getting the consumer business and any future enterprise license for free," JPMorgan’s John DiFucci wrote, MarketWatch reported.
- Monsanto Co. (MON), one of the largest global sellers of seeds and agriculture products, said that it…
AIG Could Repay $85 Billion Government Loan With $115 Billion in Asset Sales, Analyst Says
American International Group Inc. (AIG), the largest U.S. insurance company by assets, may have to sell more than half its businesses to repay the $85 billion federal loan package it received last week. But it could actually reap as much as $115 billion by selling all its business units, analysts at Credit Suisse Group AG (ADR: CS) said yesterday (Tuesday).
In related news yesterday, AIG said it was suspending dividend payouts on its common stock to “conserve capital,” Thomson Financial News reported.
AIG agreed to sell a 79.9% stake in itself to the federal government in return for a two-year loan for…
24Sep2008 | Money Morning | Comments Off | ContinuedThe Inside Story of the Collapse of AIG
There’s nothing fundamentally wrong with the core insurance business units of American International Group Inc. (AIG). Nothing at all. What imploded the venerable insurance giant was an accumulation of misplaced bets on credit default swaps.
By the best estimates of the International Swaps and Derivatives Association and the Bank for International Settlements (BIS), often referred to as the central banks central bank, the notional value of credit default swaps is some $62 trillion, or 35 trillion British Pounds at an exchange rate of $1.78.
A credit default swap (CDS) is akin to an insurance policy. It’s a financial derivative that a debt…
23Sep2008 | Money Morning | Comments Off | Continued
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