Weekend Headlines
Bloomberg:
- A U.S. Navy destroyer carrying humanitarian aid arrived in a Georgian port hours after Georgia's government said a fuel train exploded when it struck a mine amid the continuing standoff with Russia.
- President George W. Bush said Congress is dragging its feet and should schedule a vote to permit offshore oil drilling and other measures designed to trim energy costs that are a drag on the U.S. economy.
- Hedge funds reduced their bets in the past year that US stocks would gain as the S&P 500 index declined and credit conditions tightened, Goldman Sachs(GS) said. Such wagers accounted for 32 percent of funds' equity investments as of June 30, compared with 45 percent a year earlier. Hedge funds cut their holdings in financial, consumer and industrial companies, while investments in utilities, telecom services and materials were little changed in the period, Goldman said. Bets that financial stocks would fall accounted for 24 percent of holdings at the end of June; the previous year, 32 percent of funds' portfolios wagered that financials would rise, the bank said.
- Crude oil may tumble to $80 a barrel within 12 months as supplies of alternative energy increase, while grain prices may climb on emerging market demand, said Renee Haugerud, whose commodity hedge fund gained 18% this year. The surge in oil has been ``overdone'' by investors seeking holdings in raw materials through the Standard & Poor's GSCI Index, a commodity gauge weighted toward energy, she said. Industrial metals also rose too high, she said. ``They were the sexy commodities,'' Haugerud, founder of the $2.5 billion commodities hedge-fund firm Galtere Ltd., said in an Aug. 19 interview in her New York office. ``Everyone wanted to get long an asset class via the GSCI, and let's face it, the GSCI is crude.'' Haugerud's flagship fund has surged almost fivefold since starting in 1999. Energy prices account for 74 percent of the S&P GSCI Index, with crude oil making up 38 percent of the gauge.
- Venezuelan inflation may accelerate to 27% in 2008, above the government’s 19.5% target, Finance Minister Ali Rodriguez said.
- Biden’s Son Employed in Profession Obama Disdains: Lobbying.
- China Petroleum & Chemical Corp., Asia's biggest oil refiner, said first-half profit fell 77 percent because government caps on fuel prices prevented the company from passing on higher raw-material costs to consumers.
- The U.S. will station inspectors in three Chinese cities to scrutinize exports to the world's largest economy, responding to concerns over the safety of China-produced food, toys and pharmaceutical ingredients. Up to 15 inspectors will be assigned to Beijing, Shanghai and Guangzhou from October, U.S. Secretary of Health and Human Services Michael Leavitt said in an interview.
- Crude oil fell for a second day in New York as BP Plc restarted flows through a Caspian Sea pipeline.
Wall Street Journal:
- House Speaker Nancy Pelosi and her husband invested between $50,000 and $100,000 in T. Boone Pickens's Clean Energy Fuels Corp., which could benefit from legislation the California Democrat favors to boost U.S. use of natural gas. Drew Hammill, a spokesman for Mrs. Pelosi, said the investment "does not raise any direct conflict-of-interest issues" or violate any ethics rules of the House of Representatives. The Pelosis got in on the ground floor at Clean Energy, purchasing shares in an auction when Mr. Pickens publicly launched the company on May 25, 2007. This year, the speaker has aligned herself with a renewed interest in natural gas, promoted in part by gas industry executives eager to expand markets amid expectations of increased U.S. supplies.
- Hedge fund Ore Hill Partners, which specializes in credit strategies, has barred clients from redeeming their money from its flagship offering just as investors clamored for an exit, the company said Friday. London-based Man Group PLC, the world's largest publicly traded manager of hedge funds, owns 50% of Ore Hill. Fund firms Drake Capital Management, Tisbury Capital Management and Pardus Capital Management put up similar withdrawal restrictions this year. While gates may help fund managers salvage business by allowing them hold onto money during difficult times, hedge-fund industry experts say they are generally a troubling sign that can signal that a fund's end is near.
- Precision Drilling Trust, Canada’s largest oil and gas driller, agreed to buy US drilling company Grey Wolf Inc. for about $2 billion in cash and stock.
- Weaker commodity prices and higher costs are starting to take a toll on the mining industry as the billions of dollars being spent on new projects could take years to recoup.
- China’s Bright Past Belies a Hazy Future. Policies and Trends Fueling Rapid Growth Have Run Their Course.
Barron’s:
- Presumptive Democratic presidential nominee Barack Obama’s tax plan may be worse for the nation’s economy than Republican John McCain’s proposal, citing a nonpartisan group. Reducing the wealthiest citizens’ incomes would cut the amount they might invest in businesses, stocks, shopping and travel and would “deal another blow to an already-hobbled economy,” the Tax Policy Center said. Obama’s plan would compound the issue with increases in capital-gains and dividend taxes, the group said.
- Raymond James Financial(RJF) topped a list of brokers measured by their analysts’ stock recommendations during the first half of this year and the past year by avoiding recommending financial companies.
NY Times:
- The advent of multitouch screen technology on Apple Inc.’s(AAPL) iPhone may boost the further adoption on other devices such as laptop computers and personal organizers, citing executives.
- A Home Network Where Your TV Talks to Your Fridge.
IBD:
- CyberSource(CYBS): Payment Transactions Firm Profits From Growth Of Online Buying.
TheStreet.com:
- Apple(AAPL) Stealthily Makes Way for New Stuff. (video)
Rasmussen Reports:
- 39% Say Biden the Right Choice for VP, Women Less Enthusiastic.
- There was no word Sunday from the International Gymnastics Federation (FIG) as officials tried to determine whether five Chinese women's gymnasts met the sport's minimum age requirement of 16 to compete in these Olympics.
- For patients with paralysis, tongue could run controls. The tireless tongue already controls taste and speech. Now scientists hope to turn it into a computer control pad.
Portfolio.com:
- Google(GOOG) Wins Verizon Wireless Sweepstakes.
CNNMoney.com:
- Gas prices down for the 38th day in a row. The price of gas dipped below $3.70, after crude oil futures posted a record drop on Friday.
Observer:
- Savills Plc, the UK’s largest publicly traded property consultant, will announce this week it is cutting “scores of jobs.” Savills will also say homes selling for $1.7 million or more in London are “simply not moving.” CEO Jeremy Helsby is understood to have told colleagues that he expects housing prices to fall by 25% by the end of next year.
- Lehman Brothers Holdings(LEH) CEO Richard Fuld is expected to relinquish his position before the end of the year, citing bank “insiders.”
- A British-built spy plane has set an unofficial world record for the longest continuous unmanned flight. The aircraft, a Zephyr, stayed aloft for 82 hours and 37 minutes powered by solar panels and a rechargeable battery at night.
Spiegel:
- The German economy may contract again in the third quarter, pushing
Frankfurter Rundschau:
- The European Central Bank should cut interest rates as the current level hurts the economy and job creation, the head of
Cinco Dias:
- Spanish construction activity will decline next year and in 2010 after the end of a building boom, citing research network Hispalink. Building work will fall by .2% in 2008, extending to a 1.8% drop in each of the following two years, the group said.
Wirtschaftswoche:
- Dell Inc.(DELL) may post faster sales growth than the personal-computer market this year, citing an interview with CEO Michael Dell. Dell said the company will match strong first-half growth in the final six months of the year, driven by demand from US companies expanding abroad. The financial services industry still needs to expand its information its information technology capacity. The company also sees “huge potential” in the consumer market, as the company increased shipments in that sector by 48% in the last quarter.
Focus:
- Deutsche Telekom AG’s T-Mobile International AG wireless unit has sold 120,000 new iPhones since they were introduced a month ago, citing an interview with CEO Hamid Akhavan. The mobile-phone operator has sold 75,000 iPhones in
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Shana:
- Iranian oil officials will travel to
Al-Gomhuria:
- Wholesale cement prices in
Emarat Alyoum:
- The
Weekend Recommendations
Barron's:
- Made positive comments on (FCX), (FE), (ICE) and (AAPL).
- Made negative comments on (GRMN) and (RSH).
Citigroup:
- Reiterated Buy on (MENT), target $19.
- Reiterated Buy on (AOC), target $55.
- Downgraded (CVC) to Sell, target $29.
Night Trading
Asian indices are +.25% to +1.75% on avg.
S&P 500 futures -.22%.
NASDAQ 100 futures -.16%.
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