Reuters: The Nielsen survey shows consumer confidence up in the US for the first time since 2007.
Reuters: Obama’s financial reforms are advancing in Congress.
Reuters: The pay czar said his authority should not be expanded.
Reuters: Obama’s “too big to fail” bill would curb bailouts. Read More
Reuters: UBS (NYSE:UBS) will put in a new US chief.
Reuters: Goldman Sachs (NYSE:GS) says “dark pools” help investors.
Reuters: The US is welcoming the rise of the yuan.
Retuers: Nelson Peltz’s board seat at Legg Mason (NYSE:LM) may not signal change. Read More
Southwest Air (NYSE:LUV) once again proved why it is the most admired carrier in America. Over 83% of its flights arrived on time in August, the latest month measured by US Department of Transportation.
Northwest, probably still working through an integration with its new owner Delta (NYSE:DAL) posted the worst record for arrivals among big carriers with 74% of its flights getting where they were going. Delta did almost as poorly with a figure below 79%. Read More
According to Volume Spike Investor, several stocks are making major move before the open.
UAL (UAUA) is tanking (details) Ascent Solar (ASTI) is off sharply on a new stock offering (details)
RADVision (RVSN) is down as customer Cisco (CSCO) buys Tandberg. (detail) Lawson (LWSN) is up on earnings. (details). And, Catalyst Pharm (CPRX) is higher on drug trial news (details).
Douglas A. McIntyre
Try to balance the conventional wisdom about airline stocks. Audit Integrity has AMR (AMR) and Continental (CAL) on its list of large American companies most likely to go bankrupt. UBS upgraded several carriers to “buy” from “neutral”, and that has shares in AMR, Continental, US Air (LCC), United (UAUA), and Alaska Air (ALK) trading up sharply. United is trading up almost 6% to $9.34.
The UBS issued the upgrades because the carriers have shown that they can raise capital and because ticket prices may have stopped falling. Some of the airlines carry so much debt that bringing in money may be critical to their survivals. Read More
By Robert Herbst of AirlineFinancials.com
American Airlines (AMR) recent announcement made one thing very clear.
–Sorry St Louis, it’s nothing personal it’s just business!–
It doesn’t take a rocket scientist to conclude St Louis (STL) is the big loser in AMR’s
newest business strategy. Picking the winners will be more of a challenge.
Thursday, AMR disclosed the destinations served from St Louis will drop from 39 to
just 9 by next summer. As a side-note, back in 2000, the year prior to AMR’s
acquisition of TWA, there were well over 400 TWA departures to both US
and International destinations. Read More
By Robert Herbst
After losing over $5 billion last year, the airline industry is now on course to lose a similar amount for 2009. This projected loss comes after the airlines will spend over $13 billion less for fuel compared to 2008.
Losing money for the old legacy carriers is nothing new. But this year, even low cost Southwest (LUV), after 35 consecutive years of profits, is expected to lose money. Of significance for how serious the revenue problems are for the industry, Southwest’s load factor will be the highest in the airline’s history.
If you’ve taken a flight or read a newspaper lately, you’re probably aware the airline industry has serious problems from customer service to record financial losses. Read More
Faced with higher fuel prices and falling passenger traffic, the airline industry is ailing. There are concerns that some carriers will go bankrupt if the situation does not improve by the holiday season which usually is a heavy travel period.
The International Air Transport Association is seeing a tiny up-tick in travel trends. Read More
Reuters: A tech alliance between China and Taiwas is hurting Korea.
Reuters: Spple (AAPL) easily beat forecasts.
Reuters: CIT (CIT) still faces a number of financial challenges.
Reuters: Yahoo!’s (YHOO) outlook was below expectations.
Reuters: Bernanke says unemployment could hurt the recovery. Read More
Airline price wars are back, just when carriers cannot afford them. The price of jet fuel is up. Passenger traffic is down.
Southwest (LUV) is offering fare as low as $30 one way on short flights and $90 on longer ones. Read More
Reuters: Cybercrime is spreading fast on Facebook.
Reuters: GM will seek to sell most of its assets to a new company.
Reuters: Madoff got 150 years in prison.
Reuters: AIG (AIG) shareholders will elect new directors.
Reuters: GM is close to a deal to sell Opel.
Reuters: A jury returned a $1.7 billion drug verdict against Abbot (ABT). Read More
Analysts were appalled when Goldman Sachs (GS) paid a 10% coupon on a $5 billion investment made by Warren Buffett of Berkshire Hathaway (BRK-A)(BRK-B) in September of last year. He also was given an option to buy more shares at below market prices. Buffett drove a similarly hard bargain to make a $3 billion investment in GE (GE).The panic about the financial system was so pervasive that these kinds of investments were available to intrepid souls like Buffett. Any major financial firm seeking to raise capital now would do much better. Read More
Reuters: Obama proposed sweeping reform for financial industry.
Reuters: A number of large banks repaid TARP. (JPM)(GS)(BBT)(COP)(STT)(AXP)(USB)
Reuters: Consumer prices show inflation is in check.
Reuters: China could still be a big buyer of US debt.
Reuters: NYSE will create a derivatives clearing house. Read More
Reuters: The US outlined new financial market reforms.
Reuters: Obama lobbied MDs on his new healthcare package.
Reuters: Russia hosted the first BRIC summit.
Reuters: B of A’s (BAC) BlackRock (BLK) stake is more appealing.
Reuters: Samsung and Nokia (NOK) are pushing into smartphones. (MOT)(AAPL)(RIMM). Read More
Reuters: Baclays (BCS) sold BCI to Blackrock (BLK) for $13.3 billion
Reuters: WHO declared a flu epidemic
Reuters: Congress bash Fed, Treasury, and B of A (BAC) on Merrill
Reuters: US is near tighter control of tobacco by FDA.
Reuters: New research shows mortgage delinquencies have bottomed
Reuters: World Bank sees a steeper global economy contraction. Read More
All of the fuel-hedging, layoffs, capacity and route-cutting the airline industry did last year in an attempt to offset the rising price of fuel has gone for nothing. Delta (DAL) announced today that it would need to make more significant reductions in available seats and the process would cost many more people their jobs.
The first week of May, crude moved around just over $50. Today it traded just above $69, a 38% increase over that period. Airline stocks have reacted badly to the news. No wonder, the International Air Transport Association recently said that the global airline industry would lose $9 billion this year.
Airlines stocks are on their way to becoming what they were a year ago. Read More
Reuters: China must balance growth and reducing greenhouse gases.
Reuters: The Supreme Court has delayed Chrysler’s Chapter 11.
Reuters: The US will allow 10 banks to repay TARP funds.
Reuters: The Boston Globe (NYT) union rejected pay cuts.
Reuters: Auto suppliers are seeking new government aid.
Reuters: The US bailout panel wants more bank stress tests. Read More
The International Air Transport Association has doubled its estimates for global airline industry losses compared to its figure of three months ago. That presages another round of carrier bankruptcies similar to these in the early part of the decade.
Reuters reports that the IATA expects the red ink at the world’s airlines to hit $9 billion this year. The main culprit is the same as it was last year–rising fuel costs. That is now married to a sharp drop in traffic. Read More
Reuters: 3D is bringing a new dimension to the computer world.
Reuters: The Supreme Court was asked to block Chrysler sale.
Reuters: China bankers called for US sales of yuan bonds.
Reuters: IATA says global airline losses will hit $9 billion.
Reuters: Soros says China influence growing faster than expected.
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