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By admin | July 9, 2008
# YouTube ad revenue on pause. Generating revenue from YouTube is proving a challenge for Google (GOOG), as big advertisers are reluctant to commit to major ad deals over fears their products will be showcased next to low-grade amateur videos. Sources say 2008 revenue of $200M is short of the company's expectations. Outside of YouTube, GOOG is struggling to unify an unwieldy 24 separate internal systems for helping advertisers identify useful search terms.
# Bernanke signals Fed will continue to prop up markets. Fed Chairman Ben Bernanke said Tuesday the problems plaguing housing and financial markets will persist through 2009 - which may lead to the Fed extending its novel decision to lend money to I-banks into the coming year. Bernanke also urged Congress to give the Fed broader authority to monitor the financial markets.
# VMware plunges on CEO firing, warning. VMware (VMW) fired CEO and co-founder Diane Greene, to be replaced by Microsoft (MSFT) veteran Paul Maritz. Sources say Greene clashed with EMC (EMC) bigwigs (EMC owns most of VMware) over costs and VMware's ability to deal with EMC competitors like IBM (IBM) and H-P (HPQ). VMW also lowered its 2008 sales estimate for the second time this year, warning they would be modestly lower than a previous 50% growth estimate. Shares were pummeled -24.4%. Bulls hope new management will pursue market share in the emerging cloud-computing market more aggressively.
# Iran getting testy. Iran says it fired nine long- and medium-range missiles during war games meant as a response to U.S. and Israeli threats. In overnight trading, crude futures are up 1.4$ to $137.90.
# InBev, BUD take off the gloves. InBev filed a proposal with the SEC that would have Anheuser-Busch (BUD) shareholders voting on a motion to replace all 13 board members. Anheuser Busch (BUD) fired back, saying it is suing InBev for an 'illegal scheme' to acquire A-B at a bargain price. A-B says InBev misled shareholders by calling its financing 'fully committed' (BUD contends it is 'rife with conditions') and by claiming St. Louis would be the combo's global headquarters (BUD maintains InBev can't manage its Cuban operations from there).
# Tough H1 for hedge funds. Hedge funds fell by an average 0.7% in June. Their YTD average loss of 0.75% is the $1.9T industry's worst on record. $16.5B new money came on board in Q1, down from $30.4B in the previous quarter; investors are showing less patience with underperforming funds, but are stopping short of pulling their assets back into cash. New hedge fund startups fell by 50%.
# Dimon discourse. In a much-publicized speech, always quotable JPMorgan (JPM) CEO Jamie Dimon blamed banks for much of the current crisis, including his own. But don't blame the beancounters, he urged: "Mark-to-market will end up being far more accurate in terms of recognizing losses than not," countering recent remarks by Blackstone (BX) CEO Stephen Schwarzman. On the weak dollar: "You can't run a trade deficit for eight years and not think you're going to have a weak dollar." Dimon also said he agreed with a recent report which alleges CNBC's reporting could have been partially responsible for Bear Stearns' downfall - a point CNBC anchor Charlie Gasparino debated hotly.
# Microsoft fights back. In the face of Apple's (AAPL) successful 'Get A Mac' ad campaign, Microsoft is preparing its own campaign touting Windows Vista.
# Pending home sales fell another 4.7% in May; they're down 14% from a year ago. "The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy," NAR chief economist Lawrence Yun said. The worse-than-expected number suggests even bigger bargains may await those with patience.
# Wholesale inventories rose, but according to Credit Suisse "There isn't an excess supply condition that would be worrisome for the outlook. It looks like the wholesale sector is bearing pretty well."
# The EIA said U.S. crude will cost $127/barrel this year - up 4.3% from a previous estimate - and $133 in 2009. It sees gasoline at $4.06/gallon next year, down from $4.21 and $4.23 in Q3 and Q4.
# More bad news for newspapers. The Chicago Tribune is cutting 80 of its 580 newsroom staffers.
Topics: Daily Updates |
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July 9th, 2008 at 9:08 am
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July 9th, 2008 at 9:48 am
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