Apple's Jobs Takes The Stage

Apple chief Steve Jobs made his first public appearance today some three months after returning from a medical leave of absence during which he underwent a liver transplant. “I’m vertical, I’m back and Apple and I’m loving every day of it,” said Jobs, who was greeted with a standing ovation from a crowd of Apple employees and journalists.

Jobs announced a revamp of Apple’s iTunes music and media store, and unveiled versions of its iPod music players at the San Francisco event. A new iPod touch boasting storage capacity of as much as 64 gigabytes was the main new piece of hardware on show. The device however did not sport a built-in video camera as many had expected. That feature was reserved for the iPod nano. Jobs took a shot at rival Cisco System, which earlier this year acquired Pure Digital, the company behind the popular Flip line of video cameras. “The market has exploded and we want to get in on it,” he said.

Source: New York Times, BusinessWeek

Uncle Sam Unlikely to Recoup Full Cost of Auto Bailout

A report published by a Congressional oversight panel says it is “unlikely” the federal government will get back all of the $74 billion it pumped into ailing U.S. carmakers. At risk is a $5.4 billion portion of the $10.5 billion owed by Chrysler. And GM’s stock would have to soar to unprecedented highs in order for the company to be able to repay the full $50 billion it got from Uncle Sam. Yet the panel concluded that the government’s auto bailout may have averted an “economic catastrophe” given that the industry accounts for 6.5% of U.S. manufacturing jobs.

Source: The Washington Post

Banks Step Up Mortgage Modifications

Bank of America and Wells Fargo boosted the pace of mortgage modifications by at least 60% in August. The two banks, which have received a combined $70 billion in federal funds, were some of the worst performers among the banks taking part in the Obama administration’s Making Home Affordable Program. Despite the improvement, BofA and Wells still lag behind Citigroup and JPMorgan Chase in modifications.

Source: Bloomberg

OPEC Expected to Hold Steady on Cuts

OPEC appeared set keep oil production quotas unchanged as the cartel’s Vienna meeting winds down today. Saudi Arabian Oil Minister Ali Naimi told reporters yesterday that the present price of crude, hovering at around $71, “is good for everyone: consumers and producers.” Nonetheless, the group is seeking to boost compliance with the current quotas, which is running at 70%.

Source: Associated Press

CNPC Lands $30 Billion Loan

China National Petroleum Corp (CNPC), the country’s largest oil and gas producer, on Sept. 9 said it received a $30 billion loan from a state-owned China Development Bank as the energy company makes a move for overseas resources. CNPC added the five-year loan will be given at a discounted interest rate, which would be used to fund its “go global” strategy.

Source: Financial Times

China’s Geely to Bid for Volvo

China’s Geely Automotive said on Sept. 9 it wants to bid for Ford’s Volvo subsidiary in a move that makes it the latest Chinese automaker to chase a foreign brand. If successful, the acquisition could boost the profile of Geely, a small, home-grown car maker and give it access to the Volvo technology the company needs to upgrade its cars.

Source: Reuters

GM’s Plans for Opel Get Complicated

General Motors’ new board could soon be in a standoff with the German government. But even if GM is determined to get a more satisfactory disposition of its Opel auto operations in Europe, there aren’t any clear-cut paths to success. The company’s board of directors met on Sept. 8 and will again on Sept. 9 to discuss Opel’s fate. If the board chooses not to accept a bid from Canadian parts maker Magna International and its Russian partner, OAO Sberbank, a very complex drama will unfold.

Source: BusinessWeek

Kraft Calms Cadbury Bid Speculation

Kraft has played down speculation it will raise its offer for Cadbury after the British chocolate company rejected its $16.7 billion offer. Cadbury shares have climbed 38% on talk the American firm could increase its bid, and that there may be a bidding war with rivals such as Hershey or Nestle.

Source: Reuters

Retailers Bend Over Backwards to Win Consumers Over

Tough economic times have caused many consumers to cut spending. But some recent promotions show shoppers will still chase a bargain, particularly one that seems unlikely to be repeated anytime soon. Even big-ticket items costing hundreds or thousands of dollars can be in high demand if they are priced right.

Source: New York Times

New Regulation to Hit Investment Banks

The global financial regulatory crackdown is likely to cut long-term profitability at U.S. and European investment banks by nearly a third, according to a study by JPMorgan. The report paints a pessimistic view of the impact of regulatory changes that include tougher capital rules for trading and a push to trade derivatives on exchanges. Investment banks’ return on equity could fall from 15% to under 11% by 2011.

Source: Financial Times

German Bankers Defend Bonuses

On Sept. 9, leading German bankers defended bonuses as a necessary reward for talent and a lesser factor in the global economic crisis than politicians have made out. “Banks can’t let star performers slip through their fingers by being tight-fisted,” Deutsche Bank Chief Executive Josef Ackermann said.

Source: Wall Street Journal

Madoff Feeder Fund Makes $8 Million Deal

Massachusetts regulators have reached an $8 million settlement with one of Bernard L. Madoff’s feeder funds. The deal calls for full restitution for the New England state’s victims, and was struck with New York-based Fairfield Greenwich Advisors. The Massachusetts secretary of state had filed a civil complaint against Fairfield on behalf of 10 state investors, saying its executives had not conducted adequate oversight of Madoff.

Source: Associated Press

NYSE Euronext Teams Up with Brokerages

NYSE Euronext has agreed to sell stakes in the options business to seven brokerages including Bank of America and Barclays as the exchange tries to revive the struggling operation. Citadel Investment Group, Goldman Sachs, TD Ameritrade Holding, Citigroup, and UBS also will purchase stakes in NYSE Amex, the company said.

Source: Bloomberg

Obama to Make Healthcare Speech

In a high-stakes speech to the nation, U.S. President Barack Obama will press for a government-run insurance option on Sept. 9in his proposed overhaul of the U.S. health-care system. White House officials say the president will detail what he wants in the health-care overhaul, as well as say he is open to better ideas on a government plan if lawmakers have them.

Source: Wall Street Journal