The Trusted Choice for the Wall Street Voice http://www.minyanville.com 2007 Minyanville Publishing and Multimedia, LLC. All Rights Reserved Kansas City Fed President Thomas Hoenig warned that central banks around the world face a “major challenge” in containing inflation according to Bloomberg. In a speech in Oklahoma City Hoenig said “Inflation has increased” to “unacceptable” levels and the real danger is that the psychology around inflation is starting to change. Meanwhile earlier today Fed Chairman Ben Bernanke said in a speech in Atlanta that the financial markets were “far from normal” but the Fed remained ready to increase the size of the auctions if further deterioration in the markets continued. The news helped reverse early morning weakness in stock ... http://www.minyanville.com/articles/index.php?a=17150 Tue, 13 May 2008 17:03:38 EST Many June graduates miss a basic point when interviewing for a job: You’re being sized up by everyone the minute you step into the office. You can flub a job interview by showing up late being rude to the receptionist dressing inappropriately speaking poorly presenting a coffee-stained resume or telling a stupid joke.“You don’t get a second chance to make a first impression ” says Jack Rayman Director of Career Services at Penn State University. “Conservative dress is always safe for both men and women. Inappropriate dress can harm your chances so dress conservatively and make your appearance a non-factor ... http://www.minyanville.com/articles/index.php?a=17023 Tue, 13 May 2008 14:00:00 EST American International Group (AIG) isn't likely to agree the worst of the financial crisis has passed.The world's largest insurer reported a wider-than-expected loss last week and announced plans to raise almost $12 billion in capital. Just days later former CEO Hank Greenberg lashed out claiming the company was in the midst of a "crisis."According to The Wall Street Journal Greenberg is questioning management's ability to navigate choppy financial waters. AIG has lost billions most of which is linked to derivative instruments backed by residential mortgages. Despite the company having issued many of the securities prior to his departure in 2005 ... http://www.minyanville.com/articles/index.php?a=17146 Tue, 13 May 2008 13:45:00 EST Sure luxury fashion looks sexy but it becomes passé when two of its biggest brands Prada and Ferragamo hold off going public for better market conditions. Both planned to list this year -- and there was word of initial public offerings (IPOs) in the second quarter -- but Reuters now reports the Italian fashion houses will wait until after summer to release market shares. That is if economic realities don't worsen and the dates get further postponed. One analyst says Prada plans to wait until July 31st and for the runway shows in July and September that are indication of ... http://www.minyanville.com/articles/index.php?a=17144 Tue, 13 May 2008 13:30:00 EST Minyanville is excited to introduce our newest professor Geoffrey Helt. Geoffrey has advised leaders of several Fortune 500 firms -- including Starbucks The Ritz-Carlton and Whole Foods Market -- on transforming their store designs product portfolios and company cultures. Please join us in welcoming Geoff!Even when facing the hapless Knicks it’s downright impossible to maintain a large lead for the entire game. Time and time again over the course of an 84-game season you see the team with superior talent lose focus and intensity in the second half. Just as with NBA hoops the “fourth-quarter fade” afflicts itself upon once-thriving corporations across ... http://www.minyanville.com/articles/index.php?a=17145 Tue, 13 May 2008 13:15:00 EST My firm Investment Management Associates  sold Lloyds TSB Group (LYG) a couple of weeks ago. I still think it's one of the best run banks in the world but its exposure to loans underwritten by other banks gave us pause and forced us to rethink our thesis. Lloyds has a securitization conduit called Cancara it uses to securitize some of the loans it generates. No problem there. The company has proven very conservative in its underwriting and that's why it sports a very rare AAA rating by Standard & Poor's. However  approximately two thirds of the $25 billion held in Cancara are loans that have ... http://www.minyanville.com/articles/index.php?a=17148 Tue, 13 May 2008 13:00:00 EST Jet Eww? We can learn a lot just by watching (the Fed). Remember last summer? We were sniffing and scratching long before the wheels on the financial wagon began to wobble. It seems that they've been particularly proactive in the last few weeks—I wonder if Ben Bernanke sees Old Mother Hubbard lurking in the shadows? Yes deals are a sign of confidence. They’re not a panacea—and one deal does not an M&A resurgence make—but it's a piece of the puzzle.  The most bullish thing about the Hewlett-Packard (HPQ)/EDS (EDS) (proposed) deal? The fact that IBM (IBM) trades as dry as it does. Late yesterday ... http://www.minyanville.com/articles/index.php?a=17147 Tue, 13 May 2008 12:30:00 EST Kevin Depew's Five Things You Need to Know to stay ahead of the pack on Wall Street: 1.  Inside Retail Sales The headlines will show retail sales in April fell but behind the numbers retail sales were actually stronger than expected. The Commerce Department reported U.S. Retail Sales dropped 0.2% but excluding purchases of autos retail sales actually increased 0.5%.  Gas station sales fell 0.4% on the back of surging gas prices and over the weekend a number of newspaper articles pointed to a surprising surge in mass transit usage across the country due to rising gas prices. Related to ... http://www.minyanville.com/articles/index.php?a=17098 Tue, 13 May 2008 12:15:00 EST One couldn't ask for nor expect a better Monday session than the one the market enjoyed yesterday. Just about everything that investors were hoping for materialized - and then some. All things considered American International Group (AIG) put together a really impressive really comprehensive package. The company’s been mismanaged and appears rudderless yet it’s been able to go well beyond its original plan to raise $7.5 billion through a combination of offerings:  171 million common shares at $34 for a total of $6.5 billion 72 million units at $75 which should raise another $5.4 billion 25.7 million underwriter options for ... http://www.minyanville.com/articles/index.php?a=17143 Tue, 13 May 2008 11:30:00 EST Summer jobs are a great way to teach your kids about responsibility presenting themselves to others handling money – and the importance of work. Start by making a list of tasks that are appropriate to your child’s age skills and self-assurance. The underlying goal: to build confidence by setting up a situation where your child can succeed.Require your child to save a hefty chunk of the summer’s earnings but be sure to allocate a reasonable amount as mad money. There has to be a reward for all that sweat. This will teach your child how to spend wisely by setting ... http://www.minyanville.com/articles/index.php?a=17142 Tue, 13 May 2008 10:45:00 EST Wal-Mart Better Than Expected Wal-Mart (WMT) reported better than expected earnings. The world’s largest retailer said 1Q EPS came in at $0.76 a penny better than consensus estimates. Revenues increased 10.2% year-over-year to $94.12 billion vs. $93.7 billion cons. Guidance is inline with second quarter earnings in the range of $0.78-0.81 vs. $0.81 consensus but Wal-Mart sees comparable store sales in the U.S. in the range of 0-2%. See Macke’s Movers by Professor Jeff Macke. From the Bull Pen: WMT shares are offered lower this morning but bulls know this is a best-of-breed stock and will use this weakness as ... http://www.minyanville.com/articles/index.php?a=17141 Tue, 13 May 2008 09:15:00 EST How 'bout a little white light to those suffering in the wake of the quake? Is that a double top in the drillers? With the VXO at 19 is this the calm before the summer storm? What does President Tyler have in store for us today? Who will be the 100 000th critter in Minyanland? Y'all see American International Group (AIG) break to a multi-year low late yesterday? How 'bout Citigroup (C) which also traded with a distinct sense of the Mondays? Haven’t we learned that if a stock (sector) can’t get jiggy with the tape sellers are likely lurking ... http://www.minyanville.com/articles/index.php?a=17139 Tue, 13 May 2008 08:50:00 EST Late in the trading day Monday news came across the tape that California-based Hewlett-Packard (HPQ) is in talks to purchase Electronic Data Systems (EDS) a Texas-based technology outsourcing company. According to Bloomberg Hewlett-Packard confirmed the negotiations and might pay as much as $13 billion for Electronic Data Systems. Moreover the article stated that the acquisition "would more than double Hewlett-Packard's annual sales in its services unit to almost $40 billion.” This could also allow it to better compete with IBM (IBM). Cutting right to the chase there are some pros and cons to this potential deal.First the pros: H-P isn’t ... http://www.minyanville.com/articles/index.php?a=17140 Tue, 13 May 2008 08:45:00 EST If you write a cover letter like this your job search is going nowhere: To Who/Whom It May Concern: I saw your ad online and I thought I’d apply for the job because it sounds like fun. I’ve had several internships with big companies and I’ll graduate in June with excellent grades. The money offered in the ad seems low for someone with my stellar qualifications but we can talk about it. Attached is my resume. I know you’ll be impressed. Give me a shout after you’ve read it! Your Future Friend and Colleague Winston (Super) Starr The letter underscores ... http://www.minyanville.com/articles/index.php?a=17017 Tue, 13 May 2008 08:00:00 EST Stocks to watch for Tuesday May 13 2008:  Clear Channel (CCU) is close to being bought by private equity firms Bain Capital Partners and Thomas H. Lee Partners for $18 billion or $36 a share. This is down from the previously offered $19.4 billion or $39.20 a share which was denied by the six banks financing the deal. Lockheed Martin (LMT) will likely win a $1.8 billion contract to build next generation satellites for the US military beating out rival Boeing (BA) reported The Wall Street Journal. The contract is for the first eight satellites of the planned constellation called Global Positioning ... http://www.minyanville.com/articles/index.php?a=17138 Tue, 13 May 2008 07:30:00 EST