Citigroup to sell $7.5 bln stake to Abu Dhabi (Reuters)
Everyone knew it was only a matter of time before Citigroup sold a big chunk of itself to some foreign fund, in hopes of getting some much-needed cash. The winner: Abu Dhabi, which is taking a 7.5 billion, 4.9 percent stake -- just below the threshold that would trigger SEC filings. Yes, Gulf investments are coming hot and fast right now, as the Emirate took a stake in AMD just a couple weeks ago, not to mention Dubai's purchase of a stake in Sony. Still, we have to wonder whether the growing Mideast influence at Citigroup will turn the company off to some retail investors in the US (just a thought). How long before the Dhimmigroup Meme starts up among conservative pundits.
Stocks Sink Into Correction As Credit Fears Take Toll (WSJ)
Last night, just for the hell of it, we watched about 20 minutes of Kudlow's show. Man, that stuff's hard to stomach. It's actually a little difficult to tell how serious he/his guests are being when the talk about some of this stuff. Everyone's goin' on about how it's all "profit taking" and that there's nothing to worry about and that if you're at all concerned about the economy, then you're just a negative ninny. Anyway, more good news today, the latest stock slide is now officially a "correction". In other words, stocks are more correctly priced now than they were when they were 10 percent higher and how can that be a bad thing. What we really need to be fearful of is an "incorrection", though, please let us know the last time you heard a rally described that way.
Study Warns of Decline In Value of Homes (WSJ)
Just in time for... a housing decline, a study is warning of a decline in home values. Specifically, a report put forth by US mayors says that homeowners will see a $1.2 trillion loss in value the next year, while 1.8 million will lose their properties. But, the good news according to the study: no recession. Just 1 point lopped off of GDP growth. Hey, as long as we're growing.
Ahead of the Bell: FCC Cable Regulation (BusinessWeek)
Big day if you're a Cable investor, as the FCC is set to chat on what, if any, new regulations will be imposed on the industry. FCC Commish Kevin Martin, alleged by many to be a friend to the Telcos, is looking to pass fresh regulations on the industry, over a host of things, like a la carte pricing and so forth. Grab the popcorn, should be a fun meeting.
Airbus Part of $30 Billion in Contracts With China (NYT)
You can't trust that Sarkozy guy. First he comes here and woos the American press (not to mention President Bush) and then he goes to China, scoring a major deal for Boeing rival Airbus. Weak. Evidently, among Airbus' objectives is a desire to reduce its exposure to the dollar. But we've got news for them: The Yuan is tied to the Dollar, so this doesn't help that much.
Reality Distortion Fields (Venture Chronicles)
No this has nothing to do with Steve Jobs. Jeff Nolan susses out a great quote from the Miami Herald from a NOAA weather forecaster on the difficulties his organization has had this year: ”The seasonal forecasts are quite good,” said Gerry Bell, NOAA’s lead seasonal forecaster. “Last year, we over-predicted and this year we over-predicted, but our track record, I think, is excellent.” Sort of reminds us of people who are great at picking stocks... they just see the trends way before anyone else does, which is why things never pan out for them.
Intuit to Acquire Homestead Technologies
Always surprising when you hear about a Web 1.0 player that's still around. Last night, after the close, Intuit announced the acquisition of Homestead, one of the early makers of EZ web creation tools. If you don't remember them, you certainly remember their competitors: Geocities, Tripod ring a bell? Ah, Homestead!
Staples Third-Quarter Profit Falls on Slowing U.S. Retail Sales (Bloomberg)
Probably got nothing to do with the economy, or any sort of business weakening. It's probably just warm weather related, but still, though it was worth noting that Staples record weak third quarter profits. But again, probably just due to the warm autumn.