Bloomberg:
GLG Partners Inc. said it will suspend redemptions from two of its hedge funds because of ``adverse economic'' conditions after they lost about a third of their value this year. GLG will stop investors from making withdrawals from the GLG Market Neutral Fund and GLG Credit Fund, it said in a statement today. The Credit Fund dropped 35 percent and Market Neutral 29 percent through Sept. 30, and they suffered further losses in October as convertible bonds and loans slumped.
- The cost of borrowing dollars in London for three months fell to the lowest level in almost four years as central bank cash injections helped ease the global credit drought. The London interbank offered rate, or Libor, that banks say they charge each other for such loans declined 20 basis points to 2.51 percent today, the lowest level since December 2004, the British Bankers' Association said. The overnight rate slid about 6 basis points to 0.32 percent, a record low for a fifth day.
- Interest rates on U.S. commercial paper dropped to the lowest in about four and a half years as companies issued less of the debt to the Federal Reserve. Interest rates on the highest-ranked 30-day commercial paper fell 0.52 percentage point to 1.22 percent, the lowest since June 2004, according to yields offered by companies and compiled by Bloomberg. Yields on 90-day paper fell 0.41 percentage point to 2.21 percent, 0.34 percentage point below the Fed's rate.
- The cost of protecting Japanese and Australian corporate bonds from default declined as bank borrowing costs fell and shares advanced. The Markit iTraxx Japan index of credit-default swaps fell 15 basis points to 205 as of 12:56 p.m. in Tokyo, according to prices from Morgan Stanley. The iTraxx Australia declined 17.5 basis points to 212.5, Citigroup Inc. data show.
- Asia's leaders, led by an ascendant China, say they hope Barack Obama didn't really mean those campaign promises to protect American trade. And if he did, they are in better shape to object than ever before. To Asian ears, Obama's calls for tougher labor and environmental rules and steps to reduce the U.S. trade deficit sound like thinly veiled protectionism, just as a global financial crisis makes exports more crucial than ever.
- Funding Drought Slams Chinese Plans as Banks Shun Plea to Lend
- Barack Obama's top priority will be appointing a Treasury secretary and White House chief of staff. The leading candidates: two Clinton administration stalwarts, Lawrence Summers and Representative Rahm Emanuel.
- Crude oil fell more than $4 a barrel after an Energy Department report showed an unexpected increase in gasoline inventories. Gasoline supplies rose 1.12 million barrels to 196.1 million barrels last week, the report showed. A 650,000-barrel drop was forecast, according to the median of 14 analysts surveyed by Bloomberg News. Stockpiles of crude oil and distillate fuel, a category that includes heating oil and diesel, also climbed. ``There is plenty of inventory, given how weak demand is,'' said Michael Lynch, president of Strategic Energy & Economic Research, in Winchester, Massachusetts. ``The report was mildly bearish because of the product numbers.'' U.S. fuel demand during the past four weeks averaged 19.1 million barrels a day, down 6.7 percent from a year ago, the report showed. Gasoline consumption over the period was down 2.3 percent at 9 million barrels a day.
- Yahoo! Inc.(YHOO) Chief Executive Officer Jerry Yang will probably have to go back to the negotiating table with Microsoft Corp.(MSFT) Yang's options are dwindling after Google Inc.(GOOG) scrapped an agreement today to place ads on Yahoo's Web pages. Yahoo's track record of declining market share and stagnant cash flow suggest Yang can't go it alone, said Mark Mahaney, an analyst at Citigroup Inc. in San Francisco.
- California, Arizona, Florida Move to Ban Gay Weddings
MediaWeek:
ABC led this Election Night Tuesday, with coverage of the Presidential race at an average 9.3 rating/13 share in the overnights from 8-11 p.m., according to Nielsen Media Research data. Election coverage finished second overall on NBC (8.5/12 from 8-11 p.m.), followed by CBS (4.7/ 7 from 8-11 p.m.), which took a significant hit minus its regularly scheduled Tuesday line-up (NCIS, in particular), and Fox (4.0/ 5 from 8-10 p.m.). Four years earlier, coverage of the 2004 Presidential election (on Tuesday, Nov. 2, 2004) totaled a 26.9 rating/37 share in the overnights in prime time, with NBC first (11.1/15), followed by ABC (9.5/13) and CBS (6.3/ 9). Comparably, last night’s results were down across the board as follows:
Globe and Mail:
Forget blaming the global recession on dubious mortgage practices in the United States - blame high oil instead, says Jeff Rubin, chief economist at CIBC World Markets. “The recent spike in oil prices doesn't seem to get any credit for what's happening to the world economy now,” he says in an analysis released Monday. “That's odd, because it should.” High oil prices, on the other hand, have been responsible for four of the last five global recessions, he points out. This time around, oil prices, in real terms, have risen more than 500 per cent – that's twice the climb seen in the recessions of 1974 and the early 1980s. “If oil shocks half the size of the recent one caused the worst recessions in the last 50 years, they're a pretty obvious explanation for the recessions in oil-dependent Japan and Euroland earlier in the year,” Mr. Rubin says. High oil prices have meant a massive transfer of income from U.S. consumers to oil-producing countries, where savings rates are typically high, he argues. In the last five years, Mr. Rubin says, the annual fuel bill in the advanced countries belonging to the Organization for Economic Cooperation and Development, has grown by $700-billion (U.S.), of which $400-billion a year goes to OPEC producers. “If triple-digit oil prices are what started the recession, then $60 oil prices are what will end it,” he says
Interfax:
- Russia Russia
Folha de S. Paulo
- Brazilian Planning Minister Paulo Bernardo said the government cut its forecast for gross domestic product expansion in 2009 to 3.7% from 4.5% because of the global financial crisis. The government expects revenue next year to be $7.2 billion less than previously forecast and 5% inflation, compared with the central bank’s 4.5% target, citing Bernardo.
Deseret News:
- Iraqi officials said Wednesday they don't expect Barack Obama to withdraw U.S. troops hastily from Iraq because he told them last summer that he wouldn't make a decision without consulting them and U.S. commanders on the ground. With violence down and the economy No. 1 on American voters' minds, the Iraqis said they believe the new president will take his time before fulfilling his promise to end the war in Iraq. Exit polls Tuesday showed that only one in 10 American voters considered Iraq their main concern in choosing a president, suggesting that Obama will focus more on the economy when he takes office Jan. 20.
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