Creditors Oppose Extending Lehman Bankruptcy Plan Deadline Reuters

A group of unsecured creditors on Friday objected to a request by bankrupt Lehman Brothers Holdings Inc. (LEHMQ) for more time to draft its reorganization plan, claiming the delay will cut into the $13 billion they say they are owed, according to court documents quoted by Reuters.

Lehman attorneys asked the bankruptcy court in Manhattan to extend until March 15, 2010, the period in which the company can propose a reorganization plan. The current deadline expires Monday, but Lehman said it needs time to collect data and coordinate cases that span the globe.

The unsecured creditors, including Elliott Management Corp., King Street Capital Management LP and Paulson & Co. Inc., said Lehman is essentially being liquidated and therefore creditors should manage the process since they are the main beneficiaries.

German lawmakers approve 'bad bank' scheme

ERLIN (AFP) - A German bill enabling the creation of "bad banks" to help commercial and state-owned banks recover from the financial crisis cleared its final hurdle Friday with a vote in parliament's upper house.

Bank owners would pay for the costs of the measures, which let them transfer risky and non-core assets to a separate institution, cleaning up balance sheets and paving the way for fresh lending to the recession-hit economy.

The plan approved by the Bundesrat involves exchanging financial instruments including asset-backed securities and collateralised-debt obligations for state-guaranteed bonds, for which banks will pay a fee.

Up to 230 billion euros (320 billion dollars) worth of such so-called toxic assets held by private banks could be covered by the law.

A separate "bad bank" model designed for regional state-owned banks would allow them to offload troubled activities to a structure that could then liquidate them.

The so-called Landesbanken invested heavily in complex instruments that collapsed when the US market for high-risk, or subprime mortgages melted down in mid 2007.

Terms of the bill also encourage consolidation of the regional banks, several of which were hurt further by the collapse of the investment bank Lehman Brothers (NYSE: LEH - news) .

The lower house of parliament approved the legislation last week.

Jumpstarting bank lending is a growing concern for German leaders, and Finance Minister Peer Steinbrueck pointed Friday to a serious threat of a German credit crunch later this year.

"We must take seriously, very seriously, the threat of a credit crunch in the second half" of 2009, Steinbrueck told the Frankfurter Rundschau in an interview.

He suggested the German central bank, the Bundesbank, could buy corporate debt if the situation worsened.

Economy Minister Karl-Theodor zu Guttenberg also warned Thursday about deteriorating credit conditions in Europe's biggest economy.

"It must be clear to all: we must prepare for difficult times and we must do it very soon," Guttenberg told a press briefing in Berlin.

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Rally's fate turns on bank results

NEW YORK (Reuters) - If Wells Fargo's upbeat first-quarter performance is any sign, Wall Street could rally further next week on any reassuring news from three other big banks due to post quarterly results.

Stock Exchange to sell own shares

Changes in trading technology have forced the Stock Exchange's hand
The London Stock Exchange has set a timetable for its planned move to become a public company.
An extraordinary general meeting has been called for 15 March, when the 296 shareholders with voting rights will be asked to approve the proposals.
If the plans get 75% support, dealing in shares will begin in May. The LSE will then consider whether to float and offer shares to the public.
The change, which was announced last year, will end more than 200 years of mutuality. The Stock Exchange believes this is the best way to ensure its survival in an increasingly competitive market.
It no longer enjoys an effective monopoly - there are many other options for UK companies wishing to float and raise capital, including the US electronic market, Nasdaq, and its European counterpart, Easdaq.
It is not clear how much the exchange will be valued at - estimates vary between £200m - £500m. Last year it made a profit of £17.5m, down from previous figures, but still a turnaround from 1995, when it lost £16m.

Stock exchanges merge

National pride, disagreement on regulatory issues and technological problems limited progress on stock market mergers.
Investors want liquidity, diversity and easy access at low prices, within the euro-zone and beyond.
The stock exchanges are trying to deliver, but they are not quite there yet.
Swedish pitch for London
The most outrageous story of 2000 was the bidding war for the London Stock Exchange (LSE), Europe's largest stock exchange, and the world's fourth biggest.
It had originally planned to merge with Germany's stock market, the Deutsche Börse, to form the iX exchange.
But that was upset in August when an upstart Swedish group entered the battle.
OM Gruppen was not exactly a household name at the time, but its hostile takeover bid for LSE quickly changed that.

Uganda stock exchange expands

As the bell struck on Thursday morning trading began at the Uganda Securities Exchange - basically a small office in central Kampala.
This time there is an extra company listed - Bank of Baroda Uganda.
It means more work for the half a dozen brokers in their bright red jackets buying and selling shares on behalf of the investors.Trading takes place two mornings a week. And no, this is not the hive of activity you will find in other markets in capital cities around the world.
At the end of 20 minutes of trading, nine deals had been made and over 86,000 shares traded.
And on the first day on the exchange the new Bank of Baroda shares had risen in value by 16%.
Good news for those who had bought shares in the bank.
The Ugandan Stock Exchange in Kampala was set up two years ago and the signing of the Bank of Baroda takes the total number of companies listed to just five, making it one of the smallest in Africa.

SEC head promises action on short-selling rules

WASHINGTON - The Securities and Exchange Commission is carefully weighing options for reining in rushes of short-selling that can sink stock prices and will work seriously on a plan to give shareholders access to annual corporate ballots for directors, the agency's chief said Monday.

To sustain rally, market looks to earnings

NEW YORK - Enthusiasm over government programs aimed at breaking a logjam in bank lending has become the key driver of the market's recent surge. But that could take a back seat in coming weeks as investors return to their bread-and-butter indicator: quarterly earnings data.

Nikkei briefly down 4 percent as autos fall

TOKYO (Reuters) - Japan's Nikkei stock average fell 4 percent on Monday after a U.S. autos task force rejected restructuring plans submitted by General Motors and Chrysler LLC, sending automakers tumbling. In a stunning reversal for management at both automakers and GM investors and creditors who had bet on a softer line, the Obama administration task force warned both firms could be put through bankruptcy to slash debts

World stocks plummet as auto sector reels

LONDON (AFP) - Global stock markets dived on Monday as fresh woes for the global auto sector and extremely weak economic data triggered a rush to dump shares and cash in on a recent rally, traders said.

Oil prices slide under $50 on economic woes

LONDON (AFP) - Oil prices sank underneath 50 dollars per barrel on Monday, in line with stock markets on renewed concerns for the global economy and the struggling US auto sector, traders said.

World stocks recover, London up 2.52%

LONDON (AFP) - Global stock markets recovered Tuesday as investors hunted for bargains a day after sharp losses caused by heightened concerns for the US economy and in particular its ailing auto sector.

Euro bounces in line with stocks

LONDON (AFP) - The euro bounced back strongly against the dollar on Tuesday, taking a lead from a recovery on the stock markets after a sharp sell-off the previous day.

Kuwait bourse suspends 36 stocks for late results

KUWAIT CITY (AFP) - The Kuwait Stock Exchange suspended trading on Wednesday in the stocks of 36 companies, mostly investment firms, for failing to report in time their financial results for last year.

LONDON (Reuters) - World stocks turned lower and European currencies fell on Tuesday after data showed the euro zone economy shrank more than previous

LONDON (AFP) - European stock markets dipped and Asian equities were mixed on Friday as investors tread cautiously before the release of key US jobs data, traders said, following a surge sparked by the G20 summit.

Stocks, European currencies turn lower after data

LONDON (Reuters) - World stocks turned lower and European currencies fell on Tuesday after data showed the euro zone economy shrank more than previously thought, fanning concerns about the impact on corporate profits from the economy.

Dollar drops back below 100 yen

LONDON (AFP) - The dollar slipped back below the key 100 yen level on Wednesday as sharp falls on global stock markets restored some of the Japanese currency's safe haven appeal, dealers said.

US government won't take Madoff money

NEW YORK - The U.S. government said Wednesday it will not try to keep any money recovered from the sale of Bernard Madoff's assets, a message meant to reassure skittish investors who feared some proceeds might land in the U.S. Treasury rather than their

Bank results to dictate Wall Street rally's fate

NEW YORK (Reuters) - If Wells Fargo's upbeat first-quarter performance is any sign, Wall Street could rally further next week on any reassuring news from three other big banks due to post quarterly results.

World stocks win back ground before Easter break

LONDON (AFP) - World stock markets advanced Thursday, with Asia boosted by a record new stimulus package in Japan and Europe lifted by overnight US gains before a British interest rate call and the Easter break.

European investors await Bank of England

LONDON - European stock markets rose only modestly Thursday despite earlier hefty gains in Asia — which included a near 4 percent rally on Tokyo's Nikkei following details of a new stimulus package — as investors remained cautious ahead of a Bank of England interest rate decision and the long Easter weekend

Stocks surge as profits at Wells Fargo jump

NEW YORK - Stocks bounded higher early Thursday after banking giant Wells Fargo & Co. issued a surprise profit announcement that was far above analysts' estimates

Oil rises above $52 as stocks surge Reuters

LONDON (Reuters) - Oil rose above $52 a barrel on Thursday as rallies on global stock markets revived thoughts of economic recovery and subsequent increased demand for oil.

Wells Fargo results ignite Wall Street

NEW YORK (Reuters) - Stocks jumped on Thursday as Wells Fargo gave preliminary first-quarter results that were stronger than expected, providing relief to the troubled financial sector.

Treasurys Gain As Investors Shy Away From Equities

Treasury prices rose Tuesday, pushing yields lower, as weakness in equities stemming from anxiety before first-quarter earnings start made the safety of bonds a bit more attractive.

Two-year note yields (UST2YR) fell 4 basis points, or 0.03%, to 0.90%. Yields move in the opposite direction of prices.

Ten-year note yields (UST10Y) declined 3 basis points to 2.90%.

With little other data or official speeches on the schedule, "the market will likely give equities their due," said RBS Greenwich Capital.

Ten-year note yields also were correcting lower after being oversold to reach above 2.92%, an important technical level, said John Spinello, Treasury strategist at Jefferies & Co., in emailed comments.

Gains were limited as the Treasury plans to sell $6 billion in inflation- indexed 10-year securities, with bids due at 1 p.m. eastern time.

Also up for sale today are $28 billion in 4-week bills (UST1MO) and $25 billion in 1-year bills (UST1YR).

The government will also sell $35 billion in 3-year notes (UST3YR) on Wednesday, followed by $18 billion in 10-year notes on Thursday.

Euro Zone's Fourth-Quarter Contraction Worse Than Thought

LONDON (Dow Jones) -- The euro-zone economy's record contraction in the final three months of 2008 was even deeper than previously thought, statistics agency Eurostat said Tuesday in its final estimate of fourth-quarter gross domestic product.

Eurostat revised down its estimate of fourth-quarter activity to show a 1.6% drop in GDP compared to the third quarter. Compared to the final quarter of 2007, GDP fell 1.5%, wider than an earlier estimate of a 1.3% decline.

Economists had largely expected no change in the final estimate.

The euro zone tipped from economic growth into recession during the third quarter of 2008, when data showed that GDP declined by 0.3% for a second consecutive quarter. Two consecutive quarters of lower GDP is an informal but widely used definition of a recession.

Households' final consumption dropped 0.3%, a reversal after a 0.1% rise the previous quarter, Eurostat said. Investments plunged 4% in the final three months of the year, steeper after a 0.7% decline in the third quarter.

Exports plunged 6.1%, also far worse than a 0.2% decline in the previous quarter, Eurostat said. Imports dropped 4.7%, turning lower following a 1.3% increase in the third quarter.

Australia Cuts Rates To 49-Year Low, Signals 'End Of Cycle'

HONG KONG (Dow Jones) -- The Reserve Bank of Australia on Tuesday cut interest rates by a quarter-point and noted mortgage rates are at historical low levels, marking its clearest signal yet that the interest-rate cycle has bottomed.

The cash rate will fall to 3% effective Wednesday, a 49-year low.

"There has already been a major change in both monetary and fiscal policy in Australia," said Governor Glenn Stevens in a statement published on the Reserve Bank's Web site Tuesday along with the rate decision.

"Market and mortgage rates are at very low levels by historical standards and business loan rates are below recent averages, reducing debt-servicing burdens considerably."

In its previous 14 monthly meetings the Reserve Bank has hiked interest rates twice and reduced them five times. Tuesday's decision brings the cumulative reduction in interest rates since September to 4.25 percentage points.

Stevens noted there were early signs of improvement in the world economy, particularly in China, which ranks as Australia's largest trading partner. He noted it was too early say if recent pick-ups would last.

He also cautioned that near-term assessments of the global economy have been marked downward.

Still, hefty stimulus and monetary policy actions taken around world should be contain the downturn for the rest of this year, he said.

Analysts said the Reserve Bank's rate cut Tuesday would do little to further kick start borrowing or spending and appeared designed more as a public confidence booster.

"Effectively this is just 'window dressing' and is aimed at stabilizing sentiment rather than offering significant support to the economy," SocGen economist Glenn Maguire wrote in a note emailed to reporters Tuesday.

Maguire added that Australia was likely to post flat growth this year, but avoid contraction, making it one of the best performers among industrialized nations.

He added it was clear from the language in Stevens' comments accompanying the rate decision that there was little in the way of future policy cuts under consideration.

"The Bank has given unusually direct guidance that this easing cycle is now over -- or at the very least, monetary policy will be on hold for an extended period," Maguire said.

Doubts about the future direction of policy were clarified in the concluding paragraphs of Stevens' statement.

Stevens jettisoned references that monetary policy settings would be evaluated at coming board meetings.

Instead, Stevens concluded: "The stance of monetary policy, together with the substantial fiscal initiatives, will provide significant support to domestic demand over the period ahead."

GM working on advanced vehicle project

Segway has announced that it is teaming up with General Motors (GM) for a new battery-powered two-seat personal transportation device.

According to Segway, the prototype is called Project P.U.M.A. (Personal Urban Mobility and Accessibility) and it is expected to be able to carry two passengers as far as 35 miles as fast as 35 miles per hour on a single charge. Along with producing zero emissions, the company estimates that the vehicle will cost about 60 cents in electricity to recharge.

"We are excited to be working together to demonstrate a dramatically different approach to urban mobility,” said Segwat CEO Jim Norrod in a statement.

For GM, the project is an opportunity to shed a reputation of not always being quick to adopt new technologies, particularly in regard to clean energy. Up to now, the company's highest-profile eco-friendly project has been the electric-powered Chevrolet Volt, which is expected to be available next year.

According to an Associated Press report, Segway hopes to offer the vehicles for about one-third the cost of a traditional car, and it is also working on technology that would allow them to automatically avoid things like pedestrians.

Economy leads to fewer traffic fatalities

A poor economy has produced one possible side benefit in the form of record low nationwide traffic fatalities.

This week, the Department of Transportation reported that traffic fatalities were at a record low last year, and highlighted rising seatbelt use as one of the main factors. However, last year was also a time of $4 dollar gasoline and falling consumer demand, which suggests that the low fatality figures were due to more than just seatbelts.

According to the DOT, 37,313 people died in motor vehicle crashes in 2008, marking the lowest number of traffic fatalities since 1961. The fatality rate was also the lowest ever recorded, at 1.28 per 100 million vehicle miles traveled.

An Associated Press report notes that times of recession often result in lower highway fatalities. For example, the wire service notes that fatalities fell 16 percent during the recession of 1973-1974, and 11 percent during the recession of 1981-1982.

"The silver lining in a bad economy is that people drive less, and so the number of deaths go down. Not only do they drive less but the kinds of driving they do tend to be less risky - there's less discretionary driving," Adrian Lund of the Insurance Institute for Highway Safety told the AP.

Papers should charge for online content

Media mogul Rupert Murdoch is reportedly predicting that newspaper companies will eventually be forced to start charging for their online content in order to survive.

Murdoch, CEO of News Corp. (NASDAQ: News Corp.) was quoted in a Reuters report as noting that online revenues for the Wall Street Journal, which is part of his media empire, are "not a gold mine," but also "not bad." In comparison, he reportedly cited the financial struggles of the New York Times, which currently provides free news content after a past foray into user fees.

"People reading news for free on the web, that's got to change," Murdoch was quoted as saying.

The remarks come at a time when newspapers are increasingly struggling to survive in a marketplace that has increasingly emphasized online content and advertising. The problem is aggravated by a poor economy that has local advertisers scaling back on their newspaper expenditures, or turning to lower-cost or more widely-read online options.

There have been numerous high-profile examples recently of problems in the newspaper industry. This week, Bloomberg reported that the Hearst newspaper company is seeking to cut costs 20 percent across the board. Also, the Rocky Mountain News recently folded after more than a century in business, while the Seattle Post Intelligencer became an online-only news source in response to its own revenue problems.

MGM Mirage Hires Bank to Sell Casino Assets

According to a Reuters report Sunday, gaming and resort operator MGM Mirage (MGM) has contracted Morgan Stanley to sell several of its casinos, and is already in talks with potential buyers of some of its assets.

According to a source familiar with the matter, the Las Vegas-based company is negotiating deals to sell its casinos outside of Vegas. These properties include MGM Grand Detroit and Biloxi’s Beau Rivage in Mississippi.

MGM has struggled with debt and liquidity issues amid the current economic crisis, and posted a $1.1 billion fourth quarter loss in late March.

On the heels of this report, MGM shares jumped 33% in early afternoon trading Monday.

The Bottom Line
Shares of MGM are way off of all-time highs of $100 hit at the end of 2007. The stock has tripled off near all-time technical lows of $2 per share. If the shares do pull back, we see the $4.50 level as a key area that must hold. We do not currently rate this non-dividend paying stock, but we do follow the stock and casino sector closely.

MGM Mirage (MGM) does not currently pay a dividend.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Goldman Sachs Downgrades Cisco to ‘Neutral’ from ‘Conviction Buyâ€

nvestment banker Goldman Sachs (GS) said Monday that it cut its rating on Internet network company Cisco Systems, Inc. (CSCO) to “neutral” from “conviction buy.”

A Goldman analyst said that since Cisco has reached the banker’s $18 price target, that Goldman views its “growth expectation as largely priced in.” Goldman added that it maintains a positive long-term view for the company.

Cisco shares fell 93 cents, or -5%, in late Monday trading.

The Bottom Line
The stock has technical support around the $13 level. If that fails to hold, we could see the $9 price point come into play. If the shares can firm up, we see overhead resistance around the $19-21 price levels. We do not currently rate this non-dividend paying stock at this time, but we do monitor the company closely as it is a key technology name.

Cisco Systems, Inc. (CSCO) does not currently pay a dividend.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Asian Shipping Stocks Brace For Rough Seas

Asian shipping shares slumped Tuesday as a key index for marine freight rates fell to a two-month low, reflecting waning global demand for commodities and an industry trapped with excess capacity because of a harsh cyclical downturn.

With the global economy still in the midst of a slowdown and inventory levels for resources rising, the marine transportation may still be awaiting the worst, say analysts.

Nomura analysts Andrew Lee and Cecilia Chan wrote in a report Tuesday that the worst was yet to come for the bulk shipping industry.

"We expect industry fundamentals to deteriorate further as demand continues to remain weak and the large order book begins to be delivered," they said. "We expect dry bulk freight rates to remain under pressure due to a combination of weak demand, high China iron ore inventory, high China steel inventory and expected delivery of new capacity."

Shares of Mitsui O.S.K. Lines (MSLOF) dropped 2.4% and in Tokyo trading Tuesday, restricting gains for a broad market that was wavering between gains and losses. Shares of China Cosco Holdings Co. dropped 4.2% and Pacific Basin Shipping sank 6.4% in Hong Kong, while STX Pan Ocean fell 0.9% in Seoul.

The drop in shipping stocks came after the Baltic Dry Index, which measures shipping freight rates and is often considered a barometer of world trade, tumbled 1.3% to 1,486 points Monday. That's the benchmark's lowest level since Feb. 4, according to Bloomberg.

At Monday's close, the index is just a shadow of the record high of 11,440 that it hit in May 2008. Since then, the index has been steadily declining, dragging along shipping stocks. Several Asian shipping shares have lost at least 60% in the past 12 months.

Nomura's analysts said they expect the Baltic Dry Index to average 1,666 this year, down about 74% from average prices of last year, and fall a further 15% in 2010, before recovering in 2011.

"We expect dry bulk freight rates to remain under pressure due to a combination of weak demand, high China iron ore inventory, high China steel inventory and expected delivery of new capacity," they wrote.

Meanwhile, the outlook for base metals was also weakening amid rising inventories, with Credit Suisse analysts noting that "aggregate base metal inventories are at record high levels and continue to rise amid weak demand."

Mining giant Rio Tinto said earlier Tuesday that it was slowing the construction of a planned alumina refinery and slash production of bauxite in response to weak demand and prices for alumina and aluminum. "At current prices around 70% of the industry is currently operating at a financial loss," said Rio's Alcan bauxite and alumina President Steve Hodgson. Rio shares tumbled more than 9% in Sydney on the announcement.

Less bearish on container ships

Analysts see the weak global economy impacting the earnings for companies across various segments of shipping, but have been most bearish on the bulk shipping segment. However, some expect companies with a fleet of tankers to perform better.

"We perceive [bulk shippers] as being in the early innings of a multi-year downturn, unless all vessels aged [more than] 20 years are scrapped and at least half of the global dry bulk order-book disappears due to cancellations, lack of funding etc.," Goldman Sachs noted in a recent report.

"Tankers face a tough year ahead, but that could encourage more scrapping of single-hull vessels, which could alleviate the oversupply situation from 2010 onwards," the brokerage added.

Among container shipping stocks, shares of China Shipping Container Lines Co. skidded 7.9% and Orient Overseas (International) lost 1.2% in Hong Kong trading.

In wider-market action, Japan's Nikkei 225 Average fell 0.2% to 8,841.73 after moving in a range around the break-even level and China's Shanghai Composite rose 0.5% as trading resumed after Monday's holiday. Hong Kong's Hang Seng Index fell 1.1%, Taiwan's Taiex fell 0.5%, Australia's S&P/ASX 200 gave up 0.8% and South Korea's Kospi was little changed.

UBS Jumps on Wynn Resorts Momentum

Shares of Wynn Resorts (WYNN) are up nearly 6% in early trading after UBS upgraded the casino company to a buy from a neutral.

The analyst likes the company’s liquidity standpoint with no debt due this year, and the company stands to gain from fewer casino openings in Macau between 2010 and 2012.

The Bottom Line
Shares of WYNN have bounced nearly 100% in the last four weeks, but are still way off of all-time highs of $164 hit in October of 2007. The company has overhead resistance in the $33-36 price area. We would look for the $23-25 price zone on any pullbacks. We do not currently rate this non-dividend stock, but we do watch the shares closely.

The Bottom Line

Shares of Wynn Resorts (WYNN) do not currently pay a dividend.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.