Amid a "hat trick" of new bad economic data (sales of new homes plummet, businesses cut orders, and jobless claims soar), President Barack Obama's economic team is weighing up a two-part bailout for the banking sector, the Wall Street Journal reports. The plan aims to help banks but not put too great a burden on taxpayers by "buying a portion of banks' bad assets and offering guarantees against future losses on some of the remainder." Yet even while the Treasury looks to help banks, Obama is beating up on the fat cat culture, excoriating top bankers as "shameful" for awarding themselves $20 million in bonuses as the economy tanked, the New York Times writes. Around the globe, other governments are wondering how the U.S. will pay for its $800 billion stimulus package. They fear that huge U.S. government borrowing will "drive up inflation and interest rates around the world," writes the NYT. Then there is the thorny issue of protectionism. Already European legislators have said they may challenge the so-called Buy American provision of the stimulus bill that "would, with some notable exceptions, ensure that only U.S.-produced iron and steel be used for construction," writes CNN Money.
On a day when Japan reported a record 9.6 percent drop in industrial production, perhaps we shouldn't be surprised to hear that Honda's net profit fell 90 percent in the fourth quarter of last year, "as the credit crisis and cautious consumer sentiment led to slow sales of even small fuel-economy cars," writes the WSJ. Staying with autos, the Detroit Free Press asks how long Ford can go it alone now that it is poised to access its final $10 billion line of credit. According to one analyst, Ford's independence play depends on "the second half [of the year] getting better." The slow expiration of the domestic auto industry is killing innovation throughout the greater economy, writes the WSJ, noting that the Big Three have long played a "nurturing role" in helping their suppliers keep up with new technology. Talking of innovation, Business Week wonders whether Detroit could learn and prosper from the Google model of open-access experimentation. Releasing a car in beta may not be as strange as it sounds. Remember the Pinto?
Hot on the heels of the Wyeth-Pfizer marriage, Swiss Big Pharma giant Roche has stepped up its bid to control California biotech company Genentech, the Financial Times reports. Having been rebuffed last year by Genentech's committee of special directors, Roche has decided to appeal directly to shareholders with an offer of $86.50 a share for the 44 percent of the company it doesn't already own.
The sun continues to shine on Amazon. While the rest of the economy drives off a cliff, the online retailer has reported an "amazing fourth quarter" that saw an 18 percent surge in revenue, Business Week reports. Amazon's "competitive pricing" succeeded in stealing sales from other Internet retailers as it enjoyed a "Wal-Mart effect with people trading down to Amazon to get better prices over the holiday,” in the words of one analyst. CEO Jeff Bezos was also keen to highlight the growing demand for Amazon's Kindle. The company is poised to unveil a new version of the electronic book reader in early February, writes the NYT. Staying in techland, Dell is preparing to enter the smart-phone market as its PC business continues to tank. Insiders tell the WSJ that Dell could go up against the likes of Apple and Research in Motion as early as next month.
Finally, from shameful bankers to shame-faced: The WSJ reports we can now count two former Merrill chief executives and a former Merrill investment-banking chief among the list of investors burned by Ponzi schemer Bernie Madoff.
On a day when Japan reported a record 9.6 percent drop in industrial production, perhaps we shouldn't be surprised to hear that Honda's net profit fell 90 percent in the fourth quarter of last year, "as the credit crisis and cautious consumer sentiment led to slow sales of even small fuel-economy cars," writes the WSJ. Staying with autos, the Detroit Free Press asks how long Ford can go it alone now that it is poised to access its final $10 billion line of credit. According to one analyst, Ford's independence play depends on "the second half [of the year] getting better." The slow expiration of the domestic auto industry is killing innovation throughout the greater economy, writes the WSJ, noting that the Big Three have long played a "nurturing role" in helping their suppliers keep up with new technology. Talking of innovation, Business Week wonders whether Detroit could learn and prosper from the Google model of open-access experimentation. Releasing a car in beta may not be as strange as it sounds. Remember the Pinto?
Hot on the heels of the Wyeth-Pfizer marriage, Swiss Big Pharma giant Roche has stepped up its bid to control California biotech company Genentech, the Financial Times reports. Having been rebuffed last year by Genentech's committee of special directors, Roche has decided to appeal directly to shareholders with an offer of $86.50 a share for the 44 percent of the company it doesn't already own.
The sun continues to shine on Amazon. While the rest of the economy drives off a cliff, the online retailer has reported an "amazing fourth quarter" that saw an 18 percent surge in revenue, Business Week reports. Amazon's "competitive pricing" succeeded in stealing sales from other Internet retailers as it enjoyed a "Wal-Mart effect with people trading down to Amazon to get better prices over the holiday,” in the words of one analyst. CEO Jeff Bezos was also keen to highlight the growing demand for Amazon's Kindle. The company is poised to unveil a new version of the electronic book reader in early February, writes the NYT. Staying in techland, Dell is preparing to enter the smart-phone market as its PC business continues to tank. Insiders tell the WSJ that Dell could go up against the likes of Apple and Research in Motion as early as next month.
Finally, from shameful bankers to shame-faced: The WSJ reports we can now count two former Merrill chief executives and a former Merrill investment-banking chief among the list of investors burned by Ponzi schemer Bernie Madoff.
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