marketsblog

Writing, The New Money-Maker

2011-02-18T13:12:00.000-08:00

Writing has been with us for a long time. We are growing into great writers with the Internet easily accessible to most of us. We communicate very differently, now. Accents are important. Some people spend lots of money to go to schools in New York or Paris to get just the right accent or knowledge. We have specialized into highly technical beings.

Our language

It is remarkable how far we have come just since the Y2K/year 2000 suspicion that just failed to occur. But like many things we have not planned, we have also surfaced inot a world that speaks a language of its own - by that I mean, there are so many ways of speaking English and so many ways of assimilating a particular type of English to suit your sense of style and persona.

Music & Language

For instance, I am amazed by the way that the music group, the BlackEyed Peas, have turned their craft into something of a nich culture. The kind of dance, music associated to their hip-hop, violent thrust, shake your booty music is distinctly their own. Similarly, rap music has also brought new syllables and words to our language. Just a name a few of them - 'Word' to stress or emphasize something. In religion, it would the equivalent to 'Amen,' which might mean I agree at a church service. There are also new ways of greetings like 'Waas up?' or more popularly, "What's up?', which unless miscontrued simply means hello.

Technology's Influence

No matter how you look at it, English is changing and we are learning to use this new English in new forms of communication like blogs, iPads and the second genertion iPad that Steve Jobs is working on. He is simply genius for all the work he is doing. Anyway you look at it, these are exciting times indeed.

marketsblog: Homeshoring to be a More Formidable Option Post Recession

2010-01-15T12:58:00.000-08:00

marketsblog: Homeshoring to be a More Formidable Option Post Recession

Homeshoring to be a More Formidable Option Post Recession

2010-01-15T12:35:00.000-08:00

In the last ten years, companies had the preconceived notion that call centers in low-cost countries like India were the best option for cost savings and efficiency. However, that kind of thinking is changing.

In the debate, homesourcing vs. outsourcing, there is some evidence to believe that companies are returning their call centers back home. Why? Well, primarily due to customer satisifaction. Adding to that is operations costs, dealing with complaints and dissatisfied customers.

It makes sense for firms post recession to think about having their services units back home, say experts.

Following the recession in 2001, it was feasible to transition jobs from the U.S. to low cost countries because it cost less per minute than the onsourcing brick and mortar type centers. Moreover, wages in underdeveloped nations was low and skills were high.

However, business leaders have to deal with the fact that retaining customers and customer service quality is the path to profitability. As many firms rethink the option of offshoring, in the wake of a recovery, homeshoring is no longer the underdog.

In many cases, clients are demanding that support services be located back home. Customers say they are not able to understand foreign employees and that they lack sufficient expertise in their area. Take for example, Delta Airlines, which has recently shifted its call center back home.

CEO Richard Anderson of Delta said in a note to employees, “Delta Air Lines Inc. has stopped routing reservation calls to India, citing complaints from customers,” adding that “customer acceptance of call centers in foreign countries is low, and our customers are not shy about letting us have that feedback,” reports tmcnet.com.

Analysts at IDC, Stephen Loyd said in a comment that when the severe global recession has passed, homeshoring is likely to be a more formidable option than offshore for many firms.

Jacob Cherian writes for SourcingLine, a leading source of data on top outsourcing locations and search engine optimization and marketing.

2009-09-14T14:22:00.000-07:00

You know, if you ask me, I'd say Pres. Obama is doing well or at least his image appears to be intact.

With regard to the stimulus package, yeah, that might work out - or not. But he is trying. One of my publishing friends in California just told me that the jobless situation is going from bad to worse. And this whole subprime debacle is taking it toll on ordinary people with families and mouths to feed.

On the plus side, people are trying to save more - that is good news. This impending recession might just prod us to go a step further as far as environmental concerns and minimalism is concerned. Eastern thinking has maintained intense focus on inner reflection as a sign of wisdom and wealth. And this might be a good time to join the bandwagon. It makes perfects sense to get to know the wealth inside you, when you're reticent to spend on eating out, or any of the externals that have been a huge part of the 90's + "me generation."

It's still a bit early, I'd say, to load your barrels at the stock exchange. Signals and omens point to a gradual easing of financial tightness as early as first quarter 2010. Can't Wait!

Obama to be Next President

2008-11-04T21:59:00.000-08:00

Washington, DC (MarketsBlog) - It's official folks. According to emerging news reports, Barack Obama is slated to be the 44th president of the United States of America.

And decidedly so. With a 270 electoral vote count required to take the White House, Obama is estimated to have a minimum of 338 electoral votes. McCain trails with 156. For more details on the count, visit http://election.cbsnews.com/election2008/

The projected victory comes on the heels of wins in battleground states Ohio, Florida, Virginia, New Mexico, Colorado, Nevada and Iowa - as well as a victory in Pennsylvania.

"Because of what we did on this day, in this election, in this defining moment, change has come to America," Obama was quoted as saying in a CBS News report as 125,000 supporters convened in Chicago's Grant Park to celebrate his victory.

"If there is anyone out there who still doubts that America is a place where all things are possible, who still wonders if the dream of our founders is alive in our time, who still questions the power of our democracy, tonight is your answer," he added.

"A new dawn of American leadership is at hand," Obama said, reports CBS News.

Toyota Unveils Small iQ

2008-10-30T01:01:00.000-07:00

Toyota Motor Corp. has launched the compact iQ, according to published reports.

The iQ is the smallest in Toyota's lineup of automobiles and has a high fuel-efficiency among non-hybrid cars. The Japanese car-maker, which overtook General Motors recently as the biggest automaker by sales, makes the point with iQ that small cars are still in vogue and are safe and spacious, The Wall Street Journal reported.

Toyota's new car is less than three meters long and offers an outstanding mileage value of 54 miles per gallon. The bubble-shaped iQ is a four seater and is the world's No.1 car-makers response to the supermini Smart car, outed by German automaker Daimler AG. The Smart car has received rave reviews in Europe and America as drivers in both continents are looking to smaller cars in the wake of soaring fuel prices.

Designing the iQ was a unique task for Toyota since it had to redefine the concept of a small car, and allow for more room. In order to fit in four seats, Toyota's engineers flattened the fuel tank. It was then underneath the floor of the vehicle. In addition, the seats were thinned out, while the air conditioning was revamped to a smaller size.

Meanwhile the iQ's dashboard was modified so that the passenger in the front seat could have more leg room. Designers got rid of the jack and spare tire so that more storage room could be added.

Chief engineer of Toyota iQ, Hiroki Nakajima, said the car is the first vehicle to reveal the automaker's brand new space enhancing design. He added that the space-saving design concepts would begin to appear in new models produced in the near future.

"When it comes to cars, traditionally, big has always meant good. The iQ radically dispels that notion," Nakajima was quoted as saying by The Wall Street Journal.

The iQ, touted for its compactness coupled with fuel-efficiency, is slated to sell in Japan on Nov. 20. It is tagged at a starting price of 1.4 million yen, the equivalent of $13,720, cite reports.

In Europe, the iQ will be unveiled in 2009. The Japanese-automaker said it forecasts sales of 2,500 iQs a month in Japan and 6,000 a month in Europe.

Toyota Motor is still considering introducing the iQ into the U.S as it would need to make design alterations to meet the rigorous safety standards of the US market.

Soichiro Okudaira, a managing officer of Toyota in charge of small-car projects explained that the age of SUVs and pickup trucks being the backbone of the U.S. market is over.

"Most customers want to move to small cars. It's a world-wide trend," he said, reports the Journal.

EU Urges Safeguards for Manufacturers As Recession Looms

2008-10-30T00:57:00.000-07:00

According to published reports, leaders of the European Union meeting in Brussels Thursday called for action protecting European manufacturers from a looming recession.

In addition, the union's 27 bloc members agreed to reach an agreement on a climate change deal by the end of the year,.

In a two-day summit, European Union ministers said they would work with other developing nations, including the U.S., to implement a real reform of the global financial system. The international system would provide more cross-border oversight, transparency, and crisis management, Financial Times reported.

The European Commission President, Jose Manuel Barroso, and French President Nicolas Sarkozy are scheduled to hold discussions with President George W. Bush about reconstructing the global financial architecture. The financial revampment is slated to include more powers for the International Monetary Fund, say reports.

Sarkozy urged other ministers to take up the cause of European manufacturers. He was quoted as saying by Financial Times, “If we had a co-ordinated response to the financial crisis in Europe, shouldn’t we have a co-ordinated response to the economic crisis in Europe?”

Italy's premier, Silvio Berlusconi, eagerly supported the call for assistance, citing a $25 billion aid package by the U.S. Congress to U.S. carmakers: “Since the US is taking massive steps to support its auto companies, it shouldn’t be a scandal if some EU states find it necessary to give support to their own,” Berlusconi said in an online report by the Financial Times.

Carmakers in Europe are demanding for 40 billion Euros, the equivalent of $53.6 billion, in loans. This aid package is in part to compensate for U.S aid package and to meet the costs stemming from the EU fuel emission standards.

In a final report at the summit, EU ministers requested the European Commission to come up with solutions “to preserve the international competitiveness of European industry” by the end of the year, reports ft.com.

The communique is a reflection of the position by some EU members such as Germany, France, Italy and others that an aid package to the European financial sector to prevent an economic collapse might leave European manufacturers staggering.

A call for a fiscal boost to manufacturers across Europe may have been the intention of an earlier draft proposed by EU members. However, ministers from U.K quickly dispelled the French-inspired phrase that alluded to “necessary steps to react to the slowdown in demand.”

Britain's foreign secretary, David Miliband, underscored the need to maintain EU state aid regulations in the development of policies.

One UK official was quoted as saying, “I think we’d rather stick to the financial sector,” reports ft.com.

Senate Passes Controversial Bailout Rescue Plan for Wall Street

2008-10-02T02:16:00.000-07:00

Washington, DC (GrounReport) - According to emerging news reports, the US Senate has passed a revised $US700 billion financial bail-out bill. This brings the rescue plan one step closer to final passage.

Fairfax media reported early Thursday that "the vote was expected to send a positive signal to global markets that there may be some systemic relief to the crisis that has ensnared global banking, threatening the world's economy."

Nonetheless, the final passage of the so-called US bailout plan, will need the backing of the US House of Representatives.

A House vote is expected as early as Friday.

U.S. dishes out Nuke Deal to India

2008-10-02T02:14:00.000-07:00

Washington, DC (GroundReport) - According to published reports, the US Congress has put its stamp of approval on the controversial Indo-US nuclear deal.

The deal, entered into between Prime Minister Manmohan Singh and President George W Bush three years ago, was approved by the Senate with 86 voting for and 13 against with bi-partisan support, reports APakistanNews.

The deal was nearly brought down by the UPA Government in India, and found opposition in the U.S. by two Democratic Senators, who raised killer ammendments to the deal.

Prior to the two-minute debate prior to voting, the Ranking Republican on the Senate Foreign Relations Committee Richard Lugar asked his colleagues to participate in a “historic” moment: “This is an opportunity for the United States and India to come together in a way that historically is important for the world. India is a very important country for us and this relationship is sealed in a very significant way by this agreement,” Lugar was quoted as saying by APakistanNews.

U.S. Lawmakers publish $700B Rescue Plan to freeze credit crunch

2008-09-28T16:56:00.000-07:00

Washington DC, MD (Marketsblog) - U.S. lawmakers have come up with a plan to rescue the financial system in the country from the persitent effects of the credit crunch.

The plan involves buying up to $700 billion worth of bad debt from ailing banks hit by the credit crisis, say published reports.

In return, the U.S. government gets a stake in these firms while executive pay at the banks will be curbed.

President Bush has expressed his approval of the rescue deal.

The plan is expected to be voted in this week, and if approved it will become the most severe intervention in the fiancial markets since the 1930s.

Nancy Pelosi, the Democratic Speaker of the House of Representatives said the message to Wall Street was that the "party is over," reports BBC News.

Google goes ga-ga over Chrome

2008-09-23T13:07:00.000-07:00

Reviews have emerged about the recently outed open source browser from Google. What's the word in town?

It's all good.

Google has stunned some people with its tabs. The fact that the browser tabs are on top means that even if the page you're working on crashes, the browser itself and the other tabs will still be functional.

Another good thing about Chrome, besides its metallic name is that Google has borrowed Opera's speed dialing features. Translation: You can now speed dial nine of the most frequently used pages on Chrome's default page.

All in all, a good and stable browser. It has also borrowed most of the shortcuts from Firefox. But, there's little chance that Firefox users will switch to Chrome permanently since there are no extensions on Chrome.

As a casual browser, Chrome stands a good chance of winning over multitudes of users. If all goes well, and Chrome delivers on what Google is promising, then this is another player in the browser wars.

The incognito mode is just fab. And the word on the street is that it's something the IE8 beta team is working on. But a scary thought about privacy - If someone goes "incognito" on a computer and does stupid things, there's no log of what the person is doing. This couldn't be a good thing with reference to hacking, etc.

Advisory firm, Murray, Devine provides valuations of management stock analysis

2008-09-21T01:12:00.000-07:00

With more and more M&A deal taking place, board of directors of several firms tend to consult an independent party before making a transaction as the there is an imminent need for protection against lawsuits.

Subsequently, the demand for financial valuation of management stock analysis is on the rise.

Murray, Devine is a company that gets involved in mergers and acquisitions transactions, recapitalization as well as leveraged byouts in a wide variety of sectors from 50 million to more than 10 billion.

Murrya, Devine's clients include board of directors, corporations, private equity funds, venture capitals, lenders, ledge funds, potential buyers or sellers, accountants, and attorneys.

This company provides an array of financial opinion, solvency opinion, and valuation services into collateral debt obligations. business development corporations, loan obligations and hedge funds.

In essence, Murray Devine is a valuation advisory firm that is capable of turn out the services and financial services produced by larger firms. And the good thing about it is small enough to assist a client with the personal, attractive and insightful due diligence, Its long-term relalationsip with clients is a testimony of their quality.

Ignite Cash While Using Energy

2008-09-20T09:53:00.000-07:00

If you're looking for a business opp., here's one for you:

Did you know you can make money, when you pay your energy bill? Well, you can. The firm, Ignite powered by Stream Energy apparently "turns energy into income." Great concept indeed. Here's a great way to ignite opportunity and ignite business at the same time. Join Ignite.

The idea is welcoming at a time when energy deregulation is rampant and the focus on renewable energy and environmentally friendly business practices are in trend. Consumers now have a great deal of freedom in selecting their energy provider. And

The idea of residual income every time you turn on power is revolutionary and ignite business provides this ignite opportunity. When you join ignite, you can save on energy bills, maintain safety and reliability and join a dynamic business opportunity all at the same time.

The way the business concept works is in the following manner: Customers at Ignite are provided electricity and gas via it's parent firm, Stream Energy.

Ignite clearly has an edge over its rivals in that this business has established a community of Independent Associates – these are in essence personal points of contact. The upshot here is that when a consumer opts to join ignite, an Independent Associate will get in touch with you about custom-made customer service that is one-on-one. And this makes ignite business very unique in the energy sector.

When you join ignite as an Independent Associate you will be offered a bundled-compensations plan. In a nutshell, as a customer-oriented energy firm, Ignite allots immediate income when Independent Associates help customers reduce their energy bills. Energy doesn't get any better than this folks!

If you're into transforming energy into income, then use this ignite opportunity to achieve electrifying results.

Who Cares About Technical Analysis? Warren Buffet Doesnt!

2008-05-21T12:19:00.000-07:00

A truly amazing article by Motley Fool states that Warren Buffet, the billionaire investor cum philanthropist, rarely takes into account details while investing.

How can such ignorance be bliss? And worse, why admit it?

Well, the secret is his stock picks offer a value discount far greater than the average 10 % that the short-term investor is looking for. Subsequently, the details don't matter.

Let me elaborate: For example if Pfizer has a drug in the pipeline. Is he worried that it will or will not pass the FDA's requirements? No, don't be a fool....or at least a Motley!

The bigger picture is Buffet goes for the big bite: long term, quality businesses that he believes in - no real hoopla in terms of technical analysis, that is.

As far as Buffet is concerned, it doesn't matter what's in the pipeline because what's in the pipeline changes every five years or so for most companies. And Warren tends to hold to his stocks mighty possessively - for decades, in fact.

China Exports Inflation To U.S.

2008-05-21T11:46:00.000-07:00

According to an article by Jim Mubak on MSN Money, the Chinese are exporting inflation to the U.S. And that's not all that funny!

For the last decade or so, the U.S. was riding the wave of the Chinese economic boom. The benefit of the rapid growth of the Chinese economy was a better than average economic growth in the U.S. along with a lower than average inflation.

That's also an antithesis because that rarely happens and if it does, it doesn't last very long.

And now the time has come when the U.S. has to kow tow to higher inflationary pressures as soaring inflation - not to mention the recent quakes and natural disasters - is taking a toll on the Chinese economy.

With oil predicted at $200 a barrel some time very soon, its no wonder that Jubak's theory is in fact quite sound.

And it has long been a conundrum that the Greenspan years produced better than average economic growth that coincided with lower than average inflation. And now that puzzle is solved!

Oil Headed For A Correction

2008-05-06T20:18:00.000-07:00

Despite oil prices hovering $123, nearing the $200 a barrel prediction, investors managed to stay in the race and continued to make bets on Wall Street. All the big three indexes were higher by the end of the day, Tuesday.

Fannie Mae, the biggest seller of home mortgages took a hit with over $2 billion in losses, although the lender tried to reassure investors that all is not headed for doom. I've added to my stock picks on MSN Caps.

Cisco was just ahead of expectations for its third quarter.

In aggregrate, oil may stay up there at its record highs for some time - perhaps for a couple of weeks. But with food prices reaching unheard-of levels, somethings gota give in the inflation equation.

Analysts say that we are headed for a huge correction in oil. In case you've shorted oil, hang on to it and think long term.

Pres. Bush: Tax Rebates To Go Out Monday

2008-04-25T22:29:00.000-07:00

President George Bush is confident that tax rebates going out Monday will ease some of the pain of American consumers as they are hit with higher gasoline and food prices.

The President said in comments made at the South Lawn of the White House, "Starting Monday, the effects of the stimulus will begin to reach millions of households across our country," AP reports.

He added,"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown."

The Democrats disagree that its going to take more than a $600 check to make consumers spend in the wake of an economic slowdown.

At best they say, the stimulus checks will make OPEC fatter as gas prices this summer are expected to rise to a whopping $4 a gallon.

Sen. Charles Schumer, D-N.Y., chairman of the Joint Economic Committee of Congress was quoted as saying in an AP report, "It's galling to think that taxpayers' stimulus checks will be lining the pockets of OPEC. The sad truth is that the average American family will spend almost their entire stimulus check on higher gas prices this year."

House Speaker Nancy Pelosi also said that another stimulus package is under discussion.
With 130 million homes receiving the stimulus, at $1200 per couple and $300 per dependent, just how much do you think the economy is gona turnaround. To use a different analogy, how many weeks worth of groceries can you stuff in your pantry for a measly $1500...which is a closer to a month's rent at best? A quandry for you to digest!

Or perhaps this is just another gimmick for a lame duck president who's throwing in some bate to bring voters to his party during an election year.

Boeing Q1 Profits Drive Wall Street Wednesday

2008-04-23T10:12:00.000-07:00

After two sessions of poor performance, Wall Street turned higher on Wednesday lifted with higher-than-expected profit at Boeing Co.

In afternoon trading, the Dow industrials average added more than 60 points as 17 Dow components were in positive territory. The gains in blue chips were led by Boeing which moved up 5.1 percent after reporting a profit gain of 38 percent in the first quarter.

Turning to the S and P 500, the index added 4.74 points to 1,381. with the IT sector pacing the most advances. Among the decliners in the index were energy and materials.
The tech-heavy NASDAQ composite index gained more than 23 points ahead of results from Apple Inc.

Meanwhile, crude oil was lower by 26 cents to $117.81 a barrel ahead of inventory data from the Energy Department. In the previous session, crude surged close to $120 a barrel on Tuesday.
In overseas trading, Asian shares showed modest gains with the Nikkei up two tenths of a percent in Tokyo, while the FTSE100 index declined half a percent in London, reports MarketWatch.

Bank Of Canada Slashes Overnight Lending Rate To 3%

2008-04-22T07:11:00.000-07:00

According to emerging reports, the Bank of Canada will be next in line among the host of global central banks to act in the midst of a troubled U.S. economy.

The central bank said on Tuesday that it will decrease its overnight lending rates by 50 basis points. That will place the benchmark lending rate at 3 percent.

According to the bank, the Canadian economy is expected to grow by 1.4 percent in 2008 and increase 2.4 percent by next year.

The measure was determined after the bank forecasted a "deeper and more protracted slowdown in the U.S. economy," reports MarketWatch

Delta & Northwestern Agree To Merger, Creating Biggest Global Carrier

2008-04-15T11:50:00.000-07:00

Atlanta, GA (Marketsblog) - In an unprecedented move of its kind, rival carriers Delta Air Lines and Northwest Airlines have consented to a $5 billion merger.

The consolidated firm will indeed create the largest world's biggest carrier, Delta, and it will carry an annual revenue of $35 billion.

The deal comes amid higher fuel prices and experts in the field say that more airlines may be forced to consolidate.

Both the U.S. and Europe are experienceing a consumer slowdown and that has kept both airlines from spiking prices.

Delta chief Richard Anderson, tapped to the new airline company said, "Merging Delta and Northwest is the most effective way to offset higher fuel prices and improve efficiencies, increase international presence and fund long-term investment in the business," reports BBC News.

Nonetheless, the deal will have to survive opposition from unions that represent ground workers and pilots.

Crude Oil At New Record, Wall Street Gains Momentum

2008-04-15T11:25:00.000-07:00

New York, NY (Marketsblog) - Crude oil hit a new high of $113.93 a barrel on Tuesday on the heels of a weakened dollar and a temporary supply failure in Mexico and Nigeria.
Motor gasoline also set a new record at $3.386 a gallon.

Crude oil for the front-month delivery rallied more than $2 and was most recently at $113.54 a barrel on the New York Mercantile Exchange.

Meanwhile, the AAA Daily Fuel Gauge Report said average retail gasoline in the nation was up to a whopping $3.386.

Stocks on Wall Street were higher on the news of crude on the verge of $114 and optimism in the earnings segment.

Hormones Linked To Higher Profts In Stock Trading

2008-04-15T04:11:00.000-07:00

According to a study from Cambridge University, surges in the level of "hormones" - yes, hormones - may in fact be the driver behind market forces, i.e."boom and bust" economics.
Interestingly, not only is the ubiquitous male hormone testosterone great for procreation, its also the deciding factor in who makes more profits.
In a related study, the Proceedings of the National Academy of Sciences linked cortisol levels to the amount of risks taken by traders. Psychologists also say that this may actually explain the irrational behaviour sometimes seen in investment bankers.

Adding a new twist to the theory, good investors get greedy when Wall Street gets fearful, the researchers found that testosterone levels were higher in traders when they made more than their usual profits - an effect similar to the "winner effect" in athletes.

The study's author, Prof Joe Herbert told BBC News, "Hormones may be important for determining how well an individual trader performs in the stressful and competitive world of the market."

Cars Using Premium Gas On The Rise Despite Surge In Crude Prices

2008-04-15T03:18:00.000-07:00

The rise in oil prices is not keeping auto manufacturers from producing more cars that consume premium fuels.

According to research by Kelley Blue Brook, vehicles utilizing costlier fuels surged to 282 in 2008 in comparison to 166, six years ago. One has to wonder with all the hype about hybrids and ethanol fuel dependant automobiles, why this trend is prevalent?

The truth of the matter is that there is higher demand for compact cars with higher performance engines that use more expensive fuels - the use of premium fuel, in turn, increases power without comprimising on mileage.

General Motors' GMC Yukon sport utility, Chevy Cobalt compact and Chevy HHR small SV; Mazda's MX-5 sports car, CX-7 crossover and RX-8 sports coupe; Volkswagen's Eos convertible and different versions of GTI, Jetta, Passatm R32 and Touareg are some of the most recent of these gas guzzlers.

David Champion, auto testing chief for Consumer Reports told USA Today, "People really, really, really dislike putting premium into their car. You see the cheaper fuel right in front of you, and you can't use it."

World Bank Pres. Calls For And End To Soaring Food Prices

2008-04-14T03:14:00.000-07:00

Washington, DC (Marketsblog) - According to several emerging reports, officials of the World Bank and finance ministers across the world are gathering to come up with a solution for surging global food prices that's causing hunger and deadly violence in several countries.
Robert Zoellick, the president of the World Bank, urged leaders to take emergency action to get a grip on the crisis.

An AP report quoted Zoellick as saying, nations have "to put our money where our mouth is" (and act now to help hungry people). "It is as stark as that."
With oil above $100 a barrel and commodity prices soaring at horrnedous levels, food prices have surged approximately 83 percent, just in the last three years. That statistic comes fromt the World Bank itself.

Countries like Egypt, Cameroon, Ivory Coast, Senegal, and Ethiopia are going through a period of rioting over the issue. As the meeting in Washington was taking place, the Prime Minister of Haiti Jacques Alexis announced his resignation due to rioting in Haiti's capital over unreasonable prices of staple foods like rice and beans.

Zoellick added in his speech that 33 countries are at risk of social upheaval due to the food crisis. Some of those countries could include Indonesia, Yemen, Ghana, Uzbekestan and the Philippines.

Markets In Asia Fall On Monday

2008-04-14T02:36:00.000-07:00

On the first day of the trading week, Asian markets slipped after a horrendous fall on Wall Street Friday over slumping corporate profits - particularly reports that signalled GE's lower than expected Q1 profits.

Also weighing on global markets is the state of the U.S. economy, and the question if indeed it is nearing a recession, as former Fed chief Alan Greenspan and others would have market participants believe.

In Tokyo, Japan's Nikkei 225 index dropped 3.1% to finish the day at 12917.5. In mainland China, the Shanghai Composite Index, which has been adding volumnously the last couple of years plunged 5.6%. And Hong Kong's Hang Seng blue chip closed 3.47% lower at 23811.20 points, reports the online edition of the Wall Street Journal.

GE's Lower-Than-Expected Q1 Profits To Weigh On Stocks Friday

2008-04-11T05:27:00.000-07:00

Hartford, CT (Marketsblog) - Taking losses from its financial services segment, General Electric Co. posted Q1 profits that were less than expected, according to published reports Friday.
News of the smaller than anticipated gains is expected to weigh on stocks when the markets open on Wall Street, say analysts.

GE's net income dived 6 percent to $4.30 billion, the equivalent of 43 cents per share from an year-ago figure of $4.57 billion, the Associated Press reported.

Thomson Financial analysts forecasted profits that were in line with 50 cents to 53 centsw per share.

GE CEO Jeff Immelt said in a statement, "Demand for our global infrastructure business remained strong, but our financial services businesses were challenged by a slowing U.S. economy and difficult capital markets."

News Corp. Combines With Microsoft To Sweeten Bid For Yahoo

2008-04-10T18:33:00.000-07:00

Sunnyvale, CA (Marketsblog) - According to published reports, Microsoft and Rupert Murdoch's News Corp.are in discussions to make a combined bid for struggling Internet portal, Yahoo!
That would mean that if the talks go through between media tycoon, Rupert Murdoch's leading mean and Steve Ballmer of Microsoft, Yahoo might actually get the sweetened bid its looking for.

The merger between the media firm that recently made waves with the acquisition of the Wall Street Journal and Bill Gates' brainchild, Microsoft may unite MySpace with MSN, the New York Times reported.

In the meantime, Yahoo will wheel and deal with Time Warner's AOL to buttress its front against the Redmond, Seattle-based software giant, reported the Wall Street Journal.

Yahoo-Google Deal Amid Takeover Bid From Microsoft

2008-04-10T03:54:00.000-07:00

Seattle, WA (Marketsblog) - In the midst of a hostile takover bid from software giant Microsoft, Yahoo has pulled a few of its own strings to come up with a deal with Google that includes using Google ads on Yahoo's search engine.

Although the current deal involves exposing Google ads to a mere 3 percent of search results on Yahoo, it might still be a ploy to increase Microsoft's $31-a-share bid for the Internet search engine firm, say analysts. Despite those reports the Redmond, Seattle-based company insists that the bid is not gona go up. And this time Steve Ballmer is putting his foot down, saying he will go to Yahoo shareholders should the takeover-process get any messier!

The two-week long trial deal is also viewed as some as a precursor to more long-lasting signings between the two firms.

BizJournal quoted Microsoft attorney Brad Smith as saying, the agreement between Yahoo and Google could have significant consequences in that it could take over the entire search market.

"Any definite agreement between Yahoo! and Google would consolidate over 90 percent of the search advertising market in Google's hands," Smith said in a statement.

At any rate Smith remained confident that a deal with Microsoft would be far more lucrative for Jerry Yang and his associates at Yahoo than one with Google which would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo!"

Smith continued to say, "Our proposal remains the only alternative put forward that offers Yahoo shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for creators, advertisers and consumers"

Microsoft CEO To Meet Yahoo Shareholders To Push Takeover

2008-04-09T09:20:00.000-07:00

An article by Elizabeth Corcoran in Forbes.com, talks about Mr. NiceGuy Microsoft CEO Steve Ballmer getting tough on his bid for ailing Internet portal, Yahoo. Read on:

"Dear Members of the Board (Yahoo),

It has now been more than two months since we made our proposal to acquire Yahoo! at a 62% premium to its closing price on Jan. 31, 2008, the day prior to our announcement. Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy.
While there has been some limited interaction between management of our two companies, there has been no meaningful negotiation to conclude an agreement. We understand that you have been meeting to consider and assess your alternatives, including alternative transactions with others in the industry, but we’ve seen no indication that you have authorized Yahoo! management to negotiate with Microsoft. This is despite the fact that our proposal is the only alternative put forward that offers your shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company and enhances choice for content creators, advertisers and consumers.

During these two months of inactivity, the Internet has continued to march on, while the public equity markets and overall economic conditions have weakened considerably, both in general and for other Internet-focused companies in particular. At the same time, public indicators suggest that Yahoo!’s search and page view shares have declined. Finally, you have adopted new plans at the company that have made any change of control more costly.

By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects.

Given these developments, we believe now is the time for our respective companies to authorize teams to sit down and negotiate a definitive agreement on a combination of our companies that will deliver superior value to our respective shareholders, creating a more efficient and competitive company that will provide greater value and service to our customers. If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board. The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.

It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo!’s shareholders and employees. We think it is critically important not to let this window of opportunity pass.

Sincerely yours,

Steven A. Ballmer
Chief Executive Officer
Microsoft Corp."

Boeing Shares Up Despite Another Delay

2008-04-09T08:22:00.000-07:00

New York, NY (Marketsblog) - Chicago-based Boeing Co. has announced that it will delay its first delivery of the superjumbo, Dreamliner 787 by six months.

The delay, however, is not expected to influence the company's 2008 guidance and the aviation firm forecasts "strong" earnings growth for 2009, reports MarketWatch.

The Dreamliner will launch its maiden flight later this year rather than mid-spring. The transatlantic rival to Europe's Airbus is scheduled to deliver 25 Dreamliners in 2009. An earlier target was closer to 109 airplanes, say reports.

The third delay in six months for the superjumbo is not worse than analysts expected, as the stock took off 1 percent to $75.77 in premarket trading.

As of 10:58 am in New York trading, Boeing added 4 percent to a whopping $78 after peaking at $78.60 earlier - that is its biggest gain since November, 2006, reports Bloomberg News.

Analyst at Oppenheimer & Co., Myles Walton told Bloomberg the delay "came in on the conservative side of expectations." Adding, "It's certainly a credible schedule if nothing else goes wrong.''

Report Says, Yahoo Investors Would Like Microsoft Deal To Go Through

2008-04-09T03:07:00.000-07:00

Seattle, WA (Marketsblog) -Despite a rejection by Internet firm Yahoo against a $40 billion takeover bid from software giant Microsoft, published reports indicate that investors at Yahoo are still rooting for the deal.

Gene Munster, a senior research analyst at Piper Jeffrey, concluded in a report that investors would rather see the deal go through than a hold out for more share value from Microsoft.

Munster was quoted as saying in a published report, "The majority suggest they prefer the current deal to no deal."

He added in his report, "We believe that Yahoo does not have alternative options to satisfy investors and that the deal fairly values Yahoo!."

However, top executives at Yahoo, Chairman Roy Bostock and CEO Jerry Yang expressed their desire to keep the company independent. They were quoted as saying in a letter, "Yahoo!'s business forecasts are consistent with what we outlined in our last earning calls." Adding, "We have had constructive conversations together regarding a variety of topics, including integration and regulatory issues."

So far, the Redmond, Washington-based company has refused to spike the $31-a-share deal and Yahoo execs maintain that a higher bid would be necessary in order for them to bulge from their current position.

WaMu To Slash Workforce By 3,000

2008-04-08T19:00:00.000-07:00

Seattle, WA (MarketsBlog) - Ailing financial firm, Washington Mutual has raised $7 billion after cutting its dividend to $0.01/share; the measure is designed to revive the struggling company amid the credit market crisis that has roiled financial firms since last August.
Analysts say that the step will help WaMu to stay aflloat despite huge losses emanating from write-downs and also give rise to some restructuring and rethinking in its strategy, reports The Associated Press.

The new capital will be provided by an investment group linked to private equity group, TPG, say published reports.

WaMu will also exit the wholesale lending business and downsize its workforce by 3,000 workers.

According to one report, Victoria Wagner, a credit analyst at S&P, said the TPG-led investment is sufficient to keep WaMu going into 2009. Nonetheless, she pointed out that the company holds a high concentration of mortgages in California, where the housing markets have been hit the hardest.

"I suspect the company is going to be smaller a year from now, maybe dramatically smaller," said Jim Bradshaw, analyst at D.A.Davidson & Co., reports AP.

We Ain't Seen The End Of The Credit Market Crisis Meltdown

2008-04-08T09:53:00.000-07:00

As of 1 pm in New York, all three big indexes - the Dow Jones industrials average, the NASDAQ compositie and the S and P 500 continue to slump in negative territory.

Among the Dow components, 18 of the 20 components are in the red, with no news to push stocks into the red or the green. While telecom rivals Verizon and AT&T are the worst performers, Cheveron and Caterpillar seem to be the top gainers.

Adding to the bearish sentiment on Wall Street, Alcoa started the earnings season posting earnings of $0.44 a share, that was lower than what analysts expected. Meanwhile, Advanced Micro Devices said it will cut 10 percent of its manpower, and said it expects its first quarter revenue to tag $1.5 billion citing lower sales expectations across all its segments, reports Briefing.com.

Ailing financial firm, Washington Mutual said it will slash its quarterly dividend to $0.01 to raise $7 billion and shore up its balance sheets.

Also taking the stocks lower was news that February pending home sale were lower by 1.9 percent as opposed to the expected figure of 0.1 percent.

And last but not the least nugget of bad news to swerve the markets Tuesday, the International Monetary Fund calculated the total cost of the market trumoil due to the credit crisis at a whopping $945 billion. That compares to the current write-down of a mere $232 billion, reports Bloomberg. Indeed, we have not seen the end of the meltdown folks!

Bernanke: Return To Growth In Second-Half Of This Year

2008-04-03T09:37:00.000-07:00

As of 1:46 pm, all three indexes on Wall Street are in the green Thursday with the Dow Jones industrials average up about a third of a percent, while the broader indexes - NASDAQ and S and P 500 are up 0.13 percent and 0.31 percent respectively.

Financials are up 0.7 percent and is seeing much of the buying interest of the day.

Bad news of the day - initial figures representing jobless claims until March 29th surged to 407,000 from 369,000. That news pretty much kept indexes where they were until noon.

Also of interest today, Fed chief Ben Bernanke testified on Capitol Hill defending his position that the Federal Reserve assisted a Wall Street bank, Bear Stearns, on the brink of bankcruptcy.

"Given the exceptional pressures on the global economy and financial system, the damage caused by a default by Bear Stearns could have been severe and extremely difficult to contain," Bernanke told the Senate Banking Committee in sworn tetimony, the Associated Press reports.

Bear Stearns, the country's fifth largest investment bank was one of the biggest victims of the credit crisis that has wrenched markets since August. The hearing was set to validate the Federal Reserve's position to put forward up to $30 billion in the sale of Stearns to JP Morgan & Chase. Bernanke was the top witness at the hearing.

Expressing his optmism for the country's economy, Bernanke was quoted as saying by MarketWatch, "Clearly, the U.S. economy is going through a very difficult period. But among the great strengths of our economy is its ability to adapt and to respond to diverse challenges. Much necessary economic and financial adjustment has already taken place, and monetary and fiscal policies are in train that should support a return to growth in the second half of this year and next year. I remain confident in our economy's long-term prospects."

"Intestinal Fortitude" - A Prerequisite For Investing

2008-04-02T09:24:00.000-07:00

In an article on MSN Money, Guru investor, John Reese talks about some reasons why investors tend to fail in the current market scenario.

Reese began his investment research firm based on the hyposthesis that investors could learn from legendary investors like Warren Buffet, Peter Lynch, and Ben Graham.

First of all chasing stocks that perform well may not be the best investment strategy since most people tend to buy when the stock has peaked. Rather, try to ask some questions as to why this particular stock is doing well or what other stocks in the industry are following suit.

Next, aiming to move money in and out on short term moves is really defeating the purpose of investing, Reese says, because such predictions on short-term movements are next to impossible. The key is to aim to stay lean during the difficult times so that one can come out ahead long-term.
Another point to remember is to keep our biases and emotions out of the investing game. Fear and greed are inevitable elements of the stock play, but they don't have to override your common sense.

In the words of the immortal billionaire-investor and philanthropist Warren Buffet, "Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ. … What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework."

If you find yourself getting overwhelmed with your investing, the first thing is to be aware of it and to try to get a hold of it. The process can be further diluted by following a protocol or system that will keep you from making decisions based on your emotions - i.e. the fundamentals of a company should point to where the stock is heading.

Another factor that you need to keep in mind is that short-term bets are always risky. But the longer the stock is held, the less risk involved.

In times of volatility, make sure your holdings are properly diversified - and that includes equities as well as asset allocation.

Another imperative in prevailing in investing is not to get too bogged down with day-to-day chages in stock movements. Having the patience and discipline to stick to your strategy will almost certainly get you out of the rut, even while stocks are underperforming.

James O'Shaughnessy was quoted as saying by MSN Money, "Finding exploitable investment opportunities … requires the ability to consistently, patiently, and slavishly stick with a strategy, even when it's performing poorly relative to other methods. … Disciplined implementation of active strategies is the key to performance."

And lastly, if you don't believe in the stocks you're picking, chances are that they may not be the tenbaggers that you'll be reaping your money from.

Peter Lynch says it all when he says its the stomach that plays a decisive role in market decisions and not the brain. One needs to have the intestinal fortitude to overcome market angst for long-term investing success, writes Reese.

"Investing Is Not A Game Where The Guy With 160 IQ Beats The Guy With 130 IQ"

2008-04-02T03:05:00.000-07:00

In an article on MSN Money, Guru investor, John Reese talks about some reasons why investors tend to fail in the current market scenario.

Reese began his investment research firm based on the hyposthesis that investors could learn from legendary investors like Warren Buffet, Peter Lynch, and Ben Graham.

First of all chasing stocks that perform well may not be the best investment strategy since most people tend to buy when the stock has peaked. Rather, try to ask some questions as to why this particular stock is doing well or what other stocks in the industry are following suit.

Next, aiming to move money in and out on short term moves is really defeating the purpose of investing, Reese says, because such predictions on short-term movements are next to impossible. The key is to aim to stay lean during the difficult times so that one can come out ahead long-term.

Another point to remember is to keep our biases and emotions out of the investing game. Fear and greed are inevitable elements of the stock play, but they don't have to override your common sense.

In the words of the immortal billionaire-investor and philanthropist Warren Buffet, "Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ. … What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework."

If you find yourself getting overwhelmed with your investing, the first thing is to be aware of it and to try to get a hold of it. The process can be further diluted by following a protocol or system that will keep you from making decisions based on your emotions - i.e. the fundamentals of a company should point to where the stock is heading.

Another factor that you need to keep in mind is that short-term bets are always risky. But the longer the stock is held, the less risk involved. In times of volatility, make sure your holdings are properly diversified - and that includes equities as well as asset allocation.

Another imperative in prevailing in investing is not to get too bogged down with day-to-day chages in stock movements. Having the patience and discipline to stick to your strategy will almost certainly get you out of the rut, even while stocks are underperforming.
James O'Shaughnessy was quoted as saying by MSN Money, "Finding exploitable investment opportunities … requires the ability to consistently, patiently, and slavishly stick with a strategy, even when it's performing poorly relative to other methods. … Disciplined implementation of active strategies is the key to performance."

And lastly, if you don't believe in the stocks you're picking, chances are that they may not be the tenbaggers that you'll be reaping your money from. Peter Lynch says it all when he says its the stomach that plays a decisive role in market decisions and not the brain. One needs to have the intestinal fortitude to overcome market angst for long-term investing success, writes Reese.

Is It Time To Move My 401K To A Money Market As A Recession Looms?

2008-04-02T02:52:00.000-07:00

With home values dropping, the contagion of the subprime debacle, and uncertainty in the financial markets, analysts are pointing to an economic downturn, better known as a recession.
Only, recession can be a scary word. And there might be a few loopholes to get around the economic downturn.

Expert's at Bankrate.com offer these strategies for a souring economy.
Although going all-cash and sitting on the sidelines till thinks look better may sound like a good idea, converting investments to cash may do more harm in the long run.

Joe Baker, a certified financial planner says, "People are scared... They're asking, 'Is the economy crashing? Should I move my 401(k) to a money market?'"

Baker's answer: "Please do not, unless you need the cash tomorrow. You'd be making a huge mistake."

The logic being that historically markets make up for their losses fairly quickly. A more common sense approach would be to look at financials swings as being cyclical and that good times and bad time will both pass.

Other factors to keep in mind while you're investing is your age, and risk tolerance, not the state of the economy, say analysts.

As a rough guideline, those who are working and in their 20s and 30s might want to keep 80-90 percent in equities, whiel those closer to retirement or approaching 60s may want to keep 50 percent in stock-holdings.

Ellen Rinaldi, executive director of investment planning and research at Vanguard was quoted as saying in a MSN Money report, "If your asset allocation was good for you six months ago, it should be good for you today," Adding, "The fact that the market is volatile should remind you to be appropriately diversified."

Experts also say that running into safe-haven investments like gold and commodities when the markets are down is also a mistake.

Brett Horowitz, a financial planner at Evensky & Katz told Bankrate.com, "If you liked the market four months ago, it's at a 15% discount."

He added, "It's a great time to buy. When you buy at a point when everything looks ugly, that's good. You're buying low. It's forward thinking."

Dow Jones Climbs 300 Pnts On Financials

2008-04-01T11:23:00.000-07:00

With the Dow Jones industrials average surging more than 300 points, Wall Street commenced the second quarter in positive territory. Investors picked themselves up from the sidelines in an optimistic fashion, hoping that the worst of the credit crisis was behind them.

Top among the gainers Tuesday were financial stocks with Lehmann and UBS adding new shares to shore up their balance sheets. Brokerage firms were quick to bolster their capital bases to ensure that they were not in jeopardy of a near-collapse, as was the case with New York firm Bear Stearns.

Most analysts are convinced that financial shares are due for a turnaround - particularly if the markets are to recover from the housing related subprime mess, reports the Associated Press.

Richard Cripps, chief market strategist for Stifel Nicolaus was quoted as saying in an AP report, "Investors have a difficult time making decisions about the stock market if they don't have confidence in major financial institutions, so there's been a lot of sideline cash." Adding, "The extreme conditions that we've seen here over the past few months has been missing that confidence ... but that appears to be changing, and we're seeing the response."

Meanwhile, the Institute for Supply Management reported that the national manufacturing reading climbed to 48.6. The figure still implies a contraction but its still better than expected, say reports.

In its steepest climb since March 18, the Dow added 298 points to 12,561.22 in afternoon trading. Also on the ascent were broader gauges, the Standard and Poor's 500, up 34.2 points, and the tech-heavy NASDAQ composite index, adding 62 points.

As investors put their money into equities Treasury's declined concurrently with the 10-year note up 3.53 percent.

Along with the gain in the financial sector, the dollar made swift gains as the Euro lowered to $1.5596. Crude was up 9 cents at $101.67 a barrel and gold fell below $900 an ounce. Commodities tend to move in an opposite direction to the dollar as they are perceived as a hedge against the greenback.

The gains follow a plan by Treasury Secretary Henry Paulson to ovehaul regulation on Wall Street, giving the Fed more authority.

Across the Atlantic, European benchamarks finished roughly 2 percent higher, while the Nikkei in Asia moved up 1 percent.