Exxon Is Moving On Up!

http://money.cnn.com/2008/10/30/news/companies/exxon_earnings/index.htm?postversion=2008103009

Analysts had expected Exxon to report a 40% jump in earnings to $2.38 per share, or net income of $12.2 billion, and a 28% surge in revenue to $131.13 billion, according to a consensus of estimates compiled by Thomson FirstCall.

My Response: When it comes to power and influence, Exxon definitely has it! Not only are they the biggest oil company in the U.S., they have increased their influence on investors. With their annual profit increasing more than expected, they have only made more people want to invest in their company. Good job to Exxon.

Lack of Influence in CitiGroup

http://money.cnn.com/2008/10/29/news/companies/citigroup/index.htm?postversion=2008102915

What now, Citigroup?

That is the biggest question that investors are itching to have answered by the nation's fourth largest bank by deposits

My Response: When your investor begin to lose faith in a company, the company begins to lose the influence they hold over these individuals. With the struggle economy, they don't believe the CitiGroup has what it takes to survive. CitiGroup needs to find a way to secure their investors and show them why they began to support them in the first place.

Delay in Merger for Huntsman and Hexion Specialty Chemicals

http://dealbook.blogs.nytimes.com/2008/10/28/huntsman-says-banks-are-unwilling-to-finance-its-merger/index.html?ref=business

Huntsman and Hexion Specialty Chemicals said Tuesday morning that their roposed
$6.5 billion merger will not close on schedule today because the banks committed
to financing the deal are unwilling to lend the necessary money.

My Response: With the so called "recession", how could companies continue to ask for financing. We all know "money makes the world go round", but sometimes you have to do things on your own. Huntsman and Hexion will just have to wait for when the funds availability, or find another bank to do business with. They have already sued two banks in Texas for denying their merger. It looks like their going to be working on bank number three.

In Class

Chrystelr Cuts Job 2

http://money.cnn.com/2008/10/24/autos/chrysler_cuts/index.htm?postversion=2008102413

The cuts, about 5,000 workers in total, will come from Chrysler's salaried and supplemental workforce. Chrysler has about 18,500 white-collar workers.

Salaried workers, which will will make up a majority of the job cuts, will be offered buyouts and early retirement packages, said Chrysler spokesman David Elshoff. Supplemental workers, employees of outside contractors who work at Chrysler, will not be offered packages, he said, but those workers make up only a small number of the cuts.

My Response: Chrystler plans on cutting 25% of their working, which puts them ahead GM. Unlike GM, Chrystler is providing package deals to salaried workers to that they are not left hanging dry. Also, they aren't cutting production workers, which also differentiates their cut back tactics from GM. Chystler is definitely thinking smart.

Honda Honda Honda

http://thewheeldeal.blogs.fortune.cnn.com/2008/10/23/fuel-cell-smackdown-round-2-–-honda-fcx-clarity/

No automaker has pursued the development of fuel cell vehicles more aggressively
than Honda (HMC) – or with greater imagination. Not content with
merely demonstrating a hydrogen-powered car, it has also taken on the challenge
of refueling the car as well. It has developed a commercial hydrogen
station powered by solar energy, as well as a home energy station that generates
hydrogen from natural gas. That’s called covering all your bases.

My Response: Honda's new line of vehicles are making GM and Chrystler look bad. Not only are their cars fuel efficient and stylish; their affordable too. Honda is smart for sticking to the production of cars and not trucks, as we have all seen the sales of SUV's decrease day by day. Honda is on the come up!

Goldman Sachs follows GM lead

http://money.cnn.com/2008/10/23/news/companies/goldman_jobs/index.htm?postversion=2008102313

The source cited "unprecedented difficult conditions in the financial markets," as the impetus for the cuts, which will be company-wide.

GM isn't the only company making cut backs... so is Goldman Sachs! As everyone believed Goldman Sachs was doing well, even with the recession going on, looks can be deceiving. If Goldman Sachs was doing so well, why are they cutting jobs? Although they are only cutting 10% of their employees, they're not as bad as GM who plans on cutting 20%.

Cheaper Gas Is Not Enough...

http://money.cnn.com/2008/10/23/news/economy/gas_economy/index.htm?postversion=2008102309

Gas prices have tumbled 30% from their record high in July and are poised tofall further. But economists say that cheaper gas won't be enough to revive a struggling economy.

I'm actually relieved to see gas continue to decrease. I guess this would apply to all drivers, because that's less money we have to spend travelling. I personally believe that as soon as gas hits its lowest, the fare for public transportation will increase. Who knows, I can be wrong!

GM is Cutting Lose Workers

http://money.cnn.com/2008/10/23/news/companies/gm_cuts/index.htm?postversion=2008102309

GM has 32,000 U.S. salaried employees, and since it has set a 20% cost target rather than a headcount reduction goal, it has yet to say how many employees it expects will be leaving the company under the program. The company has previously announced some changes in health insurance for salaried staff that will meet some of the cost cut target.

I think companies are becoming real extreme when it comes to this recession. I understand that funds are tight right now, and there is a possibility that it might get worse, but take a chance. By cutting all of these workers, they could decrease in sales and or production. They really need to understand what they really are loosing before the begin cutting people loose.

Choosen For Bailout Help

http://www.nydailynews.com/money/2008/10/21/2008-10-21_pricewaterhousecoopers_and_ernst__young_.html

The Treasury Department said Tuesday it had chosen Pricewaterhouse Coopers to be the auditor for the program. Ernst & Young will provide general accounting support.

The two firms will work on the part of the rescue program that is handling the purchase of troubled assets from banks as a way of encouraging them to resume more normal lending.

Treasury said that Ernst & Young will be paid $492,006.95 initially while Pricewaterhouse Coopers will be paid $191,469.27 for its services initially. The two contracts last until Sept. 30, 2011.

My Response: As the lottery continues, two major firms have already been chosen to receive financial assistance from the bailout out. These firms being Pricewaterhouse Coopers and Ernst & Young. Supposedly these firms are suppose to be assisting the bailout plan, in the same effort, they are being assisted with funds for their companies. It doesn't seem as if their really being helped by the bailout, but more like their being paid to help with the bailout.

Incredible Foods Fires Starbucks

http://money.cnn.com/2008/10/08/smallbusiness/Choose_the_right_clients.fsb/index.htm?postversion=2008101608

"I had two employees who did nothing but write reports for Starbucks," he recalls. Starbucks was opening ten stores a year in each of its regions, so we had five trucks on the road going in different directions. The cost of fuel, employee benefits, insurance, and workers' comp made the whole thing completely unprofitable."

My Response: Usually small businesses appreciate the opportunity to work with bigger companies with a known name. Jim Christy, CEO of Incredible Foods, is not one of these people. Christy fired Starbucks, his biggest accounts that revenue 48% of his profit. Although many may see this as a huge lost for Christy, he explains that the opportunity cost wasn't as high as it seems. He was unable to see an increase in profit due to his expenses within his business. Christy should have continued to work with Starbucks, at least with their stores that were local, which probably would have still help him.

Lehman's Former CEO Blaims Government For Fall

http://money.cnn.com/2008/10/17/news/companies/lehman_subpoena/index.htm?postversion=2008101721

The former CEO of Lehman Brothers, Richard Fuld, blames the fall in his company on the government. When you have your own company, the only person to blame for what goes wrong, is your self. It's your responsibility to manage and organize what goes on within your company, as well as the relationships you pertain outside of the company. Richard Fuld need to take responsibility for the fall in Lehman, and stop finding alternatives to blame.

Moving from Wall Street to Main Street

http://www.nytimes.com/2008/10/18/business/18nocera.html?scp=5&sq=business&st=cse

Now that the government has “saved” Wall Street — at least for the moment — hasn’t the time finally come to save Main Street too?

My Response: I don't think saving any of these branches need financial help deserve it. The people who brought these homes should have clearly understood the outcomes of what could happen if they couldn't pay for the house. The people chosen to manage these financial areas should have been carefully managing the "ins" and "outs" of the funds within the company, and also check thoroughly the background on the people who wanted to be homeowners. This is a great example of bad management. Companies that rely on the government every time their going down when its their fault.

Copy Cat.. Nike sues Wal-mart

http://money.cnn.com/2008/10/16/news/companies/nike_walmart.ap/index.htm?postversion=2008101612

Lets go Nike, lets go! Nike is suing Wal-Mart for selling shoes that resemble the Nike brand. I would say this is good on behalf of either party due to that fact that Wal-Mart may have to come out of pocket, and the value Nike shoes may decrease. In a world of fashion and trend setters, who wants to wear sneakers from Wal-Mart? I know I don't!!!

American Express Lossing Money

http://www.nytimes.com/2008/10/21/business/21amex.html?_r=1&ref=business&oref=slogin

American Express, the credit card issuer, said Monday that its profit fell 24 percent in the third quarter as cardholders spent less and defaulted more.

As many people know, the American Express is one of the hardest cards to obtain, and at the same time, the hardest to pay off. With the American American Express card, you balance must be back at zero by your card due date. This is mainly the reason I don't have an American Express card, sometimes its extremely hard to pay your entire balance off by the end of your due date, which effects your credit score. I can understand why people aren't using their cards, and why their net income is decreasing.

Goldman Sachs... Managing the Wealthy

http://www.nytimes.com/2008/10/14/business/14goldman.html?_r=1&ref=business&oref=slogin

Goldman’s state charter, if approved, would set it apart from its direct competitors — Morgan Stanley, Citigroup, JPMorgan Chase and Bank of America. Those banks operate under a national charter, allowing them to open branches across states without separate applications.
Goldman’s decision could indicate that the firm is not interested in a national consumer-focused business — which will differentiate it from its peers. Goldman is expected to focus on managing assets for wealthy individuals rather than providing retail banking services.

Goldman Sachs is going commerical bank. But we're not talking about any commercial bank, their gonna be the bank to holds funds for the wealthy. I guess they learned through indirect experience with the fall in many of their competitors. If Goldman Sachs were my company I'd do the same. Many people many not think this is fair because it only applies to the rich, but it's good management and it secures the future of Goldman Sachs.

Bloomberg 4 Mayor... Again!

http://www.nytimes.com/2008/10/10/nyregion/10termlimits.html?_r=1&ref=nyregion&oref=slogin

Even as Mayor Michael R. Bloomberg and his advisers await a City Council vote on a measure that would allow him to seek a third term, they are mapping out an aggressive re-election strategy that involves spending $80 million or more, according to eople involved in the discussions.

Many people would love to see Bloomberg back in office; me being one of these people. Bloomberg has done more than enough to prove his loyalty to the city of New York. Every knows Bloombeg has money, which pretty much throws the idea of corruption out the window. Although he is mainly known for his changes int he education systems, who doesn't like a mayor that thinks about the City's future. The children of today will someday rule, and we will have Bloomberg to thank for it.

GM.. Saving Money, Closing Factories

http://money.cnn.com/2008/10/13/news/companies/GM_closure.ap/index.htm?postversion=2008101311

With the price of oil continuing to decrease, you would think auto makers would be able to get rid of the SUV's they have. Unfortunately this is not the case. GM is taking the initiative to notice a weak spot within the company, and they are making moves. They had already made plans to close down a few of the factories that produces the SUV's, but no one expected it to happen so fast. In December, they will be closing three of the factories in Moraine, Ohio, and Janesville. This will save GM money, and allow them to focus on making more fuel efficient cars.

Ford following GM Foot Steps

http://money.cnn.com/2008/10/11/news/international/bc.as.japan.mazda.ford.ap/index.htm?postversion=2008101114

The move, should it happen, would be a symbolic retreat for U.S. automakers in Japan. General Motors Corp (GM, Fortune 500). similarly sold off its stakes in Japanese automakers in recent years.

It has recently been reported that Ford is considering selling shares of Mazda to a Japanese company. Although a decision as not been made, Ford is finding alternatives to avoid financial difficulty. By selling some of their shares on Mazda does not lessen their control with Mazda. I'm pretty sure management will draw up plans that will work in the favor of he company's best interest.

No More GM & Chrystler

http://money.cnn.com/2008/10/11/news/companies/bc.apfn.gm.chrysler.merger.ap/index.htm?postversion=2008101118

With both automakers struggling to survive amid slumping sales, a slowing global economy and an unprecedented credit crunch, it's unclear whether Chrysler's majority owner, Cerberus Capital Management LP, would be willing to pay up, or whether the federal government might even get involved to save one or both struggling automakers.

We all believed that the merging of both of these companies would help resolve some major financial issues. But as we all know, money makes the world go around. Neither of the companies have the financial means necessary to complete this deal. With all this being said, the deal is off!

GM & Chrystler Possible Merging

http://www.nytimes.com/2008/10/11/business/11auto.html?_r=1&ref=business&oref=slogin

The auto industry is being pummeled from all sides — by high gas prices that have soured consumers on profitable S.U.V.’s, by a softening economy that has scared shoppers away from showrooms, and by tight credit that is making it difficult for willing buyers to obtain loans. Both G.M. and Chrysler have been struggling with product lineups that are out of sync with consumer demand for smaller, more fuel-efficient cars.


I can see this merger as a solution to get caught up in today's bad economy. Other than the economy being a factor, I believe the idea of GM and Chrysler merging will be of great value to both automakers wen it comes to new and improved vehicles, helping save the environment, especially the combination of creativity within both companies.

Morgan Stanley... 20% Stock Fall

http://money.cnn.com/2008/10/07/news/companies/morgan_stanley/index.htm?postversion=2008100715

Morgan Stanley should have keep their investor aware of the circumstances regarding Mitubishi UFJ buying a fifth of their assets. I believe they waited to long, and allowed false information takeover. They deal between the two companies was public since last month, and should have continued to stay public upon the completion of the deal. They waited until their stock fell %20 before they made a statement regarding the deal. Communication is key in all lines of business.

Bailout Lottery

http://www.nytimes.com/2008/10/07/business/07plan.html?_r=1&ref=business&oref=slogin

The bailout plan is becoming more and more of a joke as the days go by. Since the bailout has been put into action, the government has asked to give in a bid to sell their assets that are effecting their profit. Isn't the bailout supposed to help as many companies as possible to have a major impact on our economy? Now instead, the bailout has become a lottery to see who will get the financial help they need. Once again.... and unorganized and not well thought out plan.

Low On Gas

http://money.cnn.com/2008/10/06/markets/oil/index.htm?postversion=2008100613



Most people were excited to see gas prices drop lower and lower each week, until this morning. From my own personal experience, I drove to more than 6 different gas stations this morning, and each gas station I went to did not have any gas. After speaking with my Aunt in Atlanta, Georgia, she communicated that there has been no gas in Atlanta for at least three weeks now.



With gas pricing on the constant drop, its selling quicker and quicker. Although I wasn't effected harshly by the absence of gas as of yet, many people need their vehicles to travel back and forth to work, just as some people jobs require a vehicle. Many companies will be effected by this shortage, making the economy worse than it already is.

Google and Yahoo Becoming One?

http://money.cnn.com/2008/10/03/technology/goohoo.ap/index.htm?postversion=2008100319

WASHINGTON (AP) -- Google Inc. agreed to delay the start of a Web advertising partnership with rival Yahoo Inc., giving U.S. antitrust regulators more time to review the deal.

Under a plan announced in June, Google would provide advertising next to some of Yahoo's search results. The companies voluntarily held off for three months to give regulators time to assess whether the alliance will hurt competition.

I'm not sure if merging with Yahoo is in Google's best interest. I could understand merging with a company that could add value to your company, but not a rival company. If they are constantly competing with one another, how does that help their bottom line. I hope Google changes their mind about this deal, it's not a good look.

Health Sites Merging.

http://www.nytimes.com/2008/10/03/business/03deal.html?ref=business

In a deal that threatens WebMD’s dominance in the health care space, Revolution Health Network plans to announce on Friday that it has merged with Waterfront Media, a publisher that owns several health Web sites.

“We think we have the wind at our back, and can pass them,” said Steve
Case, Revolution’s founder, referring to WebMD. He said the combined company could “really be the new leader in this category, which is a hot category.”

My Response: Many managers would see this as a negative opportunity cost for Steve because it seems as if he giving up his company. But to the contrary, Steve has probably undergone a variety of pro and cons to this decision. By merging with Waterfront Media, this may increase Steve's capital, and eventually satisfy his competitive hunger to surpass WebMD. Steve is definitely thinking about the future of his company.

Lehman Has No Effect on Southwest

http://money.cnn.com/2008/10/01/news/companies/southwest_credit.ap/index.htm?postversion=2008100113

Laura Wright said Southwest (LUV, Fortune 500), which enters fuel-hedging transactions with financial-services firms as counterparties, has no exposure to bankrupt Lehman Brothers (LEH, Fortune 500) and only a small amount to brokerages that don't have a commercial banking side.

My Response: This is an example of a company who has planned ahead for bumps in the road such as the one we are experiencing today. Southwest Airlines has little if not any, financial need since the drop in our economic market. Their CEO, Laura Wright, has managed this company to see the worst that could come ahead, and avoided any effects to her company. Although their stocks fell a little this week, a report like this will encourage more investors to look at Southwest for security.

Small Businesses Have Harder Times Getting Loans

http://www.nytimes.com/2008/10/02/business/smallbusiness/02sbiz.html?_r=1&sq=business&st=cse&adxnnl=1&oref=slogin&scp=33&adxnnlx=1224628504-hJbfBQnVLa653/I4loki1g)

Some small companies say they are no longer able to get loans from newly cautious banks as credit tightens across the country, and even those who do qualify are increasingly reluctant to borrow and expand, fearful of overextending themselves in the midst of the financial crisis.

My Response: The bailout plan has not only effected the firms that will benefit from it, but also the small businesses that make up the majority of our economy. I believe that government need to focus on helping the small businesses rather than these larger one, because they don't effect our economy as much as the smaller firms. If the government put the same amount of effort into helping smaller businesses, we might have been able to overcome this recession.

Ford’s U.S. Sales Fell 34% in Sept.

http://www.nytimes.com/2008/10/02/business/02sales.html?_r=1&hp&oref=slogin



According to this article, Ford isn't the only car manufacturer with declining sells, their just the first we've herd about. General Motors and Chrystler have not yet reported their percentage, but it'll be close if not worse than Ford. I can understand why it's so hard for dealers to get customers in the showroom; gas is too high, and we the American economy is getting weaker by the day. Soon, no one will have enough money to buy cars or even drive. Automakers can forget about producing truck and SUV's, unless they run the same amount of miles on gas as cars do. I believe the only way dealer will be able to sell these trucks, is if they drop the price so low, now one will be able to resist. If they were smart, they would merge with a major gas company and offer less money for on gas, and sell their SUV's at the original price.