Recovery Program on CitiGroup, CitiCorp and City Holdings

One of US Giant Banking CitiGroup announced that they are in planning to divide their business into 2 different companies, Citicorp and City Holdings. This plan was published after financial reported on fourth quarterly report showed a big profit loss around $8.28 millions USD.
To make deep focus in their main goal, where Citicorp will focus on retail banking and commercial business and Citi Holdings focus on management asset division and securities.

As we know, Citigroup is one of bailout members from US Government with a lot of money around $45 millions USD and Citigroup also gets back up from US government as bailsman on treasury and high risk loans around $306 millions USD.
To BBC News reporter, CEO Citigroup Vikram Pandit said that our new strategy is to make more focus on our business and company. Market condition and Economy recession made us to fast our feet, to repair our high profit loss and to increase our performance as one of the American Giant Banking.

Analysts said that the separation into 2 company showed that Citigroup try to build strong business and to get profit from debtors’ interest rate and they will get it beyond on citygroup.

Citicorp has lighter goal and duty but City Holding will responsible on Bad Loans (high risk loans) and to choice which profitable investment in future. To make it goes well, Citicorp now looks for new manager with strongest vision to help Citicorp and CityGroup escapes from problems.

While downed into crash, CityGroup CEO Pandit said that they have commitment to help financial recovery in faster and to build fresh and health financial market in near.

Source: BBC News

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New Deal between AIG and Munich Re

Monday 22 December 2008 towards the end of the year, AIG (American International Group Inc.) do not know with the privatization will sell Harford Steam Boiler (one business unit) to reinsure the German company Germany Munich Re for $ 742 million. Sales conducted as this effort as company rescue and as a step to pay the loan.

The purchase price is considered lower than the price of HSB Group Inc. 's, which has reached $ 1 billion and $ 2 billion by the Financial Times, which forced them to sell assets, assets to the government loan to pay for the United States (U.S. government bailout loan) government loan.

To reporters, Joerg Schneider, Chief of Munic Re Financial said that the financial condition when they face now is not something that is expected and dreamed recently.

AIG spokesman said that they have no good reason or dare to comment because the transaction has not agreed to terms, but Douglas Elliot, AIG spokesman explained that this transaction is uncertainty in the market and of course their clients (the German reinsire Munich Re) Munich Re plans to complete the purchase in the first quarter of 2009 next year, and will assume $ 76 million as of HSB's outstanding capital securities.

HSB, which is based in Hardford, Conn, is one of the subsidiary of the Hartford Steam Boiler Inspection and Insurance Company with the task of engineering insurance and inspection.

Peter Roeder, Munich Re board member responsible for business HSB in America, said HSB is interesting, because low-risk investment because only play in the field of business only. Acquisition HSB process is perfect as a strategy for market entry to the United States. This is a good step in restoring our position as one of the best and the purchase is regarded as a high ROI

Reinsures sell backup coverage to other insurers, as one of risk management, and when problems occur, the system can handle large or widespread losses. Munich Re also operates ERGO, one of Germany's largest insurer, and Munich Reinsurance America Inc.

HSB is romoured will be sold, as an effort to get fresh funds to restore the emergency loan from the government of the United States about U.S. $ 150 billion in a rescue effort from the government of the United States against companies that have problems in the credit crisis or credit misfire

AIG also received the actual injection of funds from the Fed of $ 85 million USD in an attempt to overcome credit problems and the debt is actually paid. Because the loan from the United States government $ 150 million USD have been paid by the AIG.

AIG does not expect much from the high price of the auction business unit that will be sold, but they will still maintain AIG as one of the U.S. property and casualty and foreign general insurance businesses, and retain ownership of their branches throughout the world as one of the insurance companies in the world

The Company does not have assets that are specifically disclosed it will sell or the expected price of the sale. However, AIG has said it plans to retain its U.S. property and casualty business and foreign general insurance, and plans to maintain a foreign ownership in life insurance operations.

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Formula year 2009 Economic Improvement

When the global crisis strikes the world marked the failure of financial institutions in the United States unions, the entire world's Central Bank to do the trimming of interest rates. No one exception and even some countries to make the moratorium on the stock market and money markets.

It is a phenomena and extravaganza global crisis, worst than the great depression because Credit Crunch also attacked worldwide countries. The crisis that occurred in the United States on the impact of this crisis across the country in the world, even richest countries such as Japan advanced countries, the European Union, Australia also submerged in crisis.

Trimming interest rates by the Fed followed by almost all other countries except Indonesia. Indonesia increased interest rates with reason to keep the flow of foreign exchange abroad. In the short term it is true, trimming the interest rate level is appropriate if we see from the time lag it.

Experts estimate the economy (World Bank and IMF) that the global crisis will continue to progress in 1 year to the next. The decrease of export demand from developed countries causing third world countries also fell in the crisis, low growth and high levels of unemployment caused world oil prices had fallen so sharply ranges below $ 60 USD in 1 month recently.

The trimming of interest rates was to stimulate the real sector, but if we see this far, the multiplier not indicate the results of positive results. Obama also promised to increase employment in 2009.
Playing with the monetary extent this formula must be supported by a fiscal formula that can be expected to stimulate the world economy in the long term. Some fiscal policies that can be taken are:

1. Tax incentives
Tax incentives are differed as tax incentives for consumers and producers. We should take it care, which sectors should be received more incentives. High level of unemployment leads to lower demand from the household therefore, there was over supply. So costumers should get tax incentives in bigger portion.

2. Subsidy
Tax incentives are also part of the overall subsidy. Subsidies to the consumer sector are expected to increase demand from households. Sector producers should also receive subsidies, with the producers dare to do such activities because of a decline in total production costs.

3. Easier terms of credit conditions to the private sector.
The destruction of the banking sector in America that foreshadows a hardening of credit to the sector and producers must be done to avoid the occurrence of bad debts. However, if this is done formally, I believe, we are troubled exit from the circle of this global crisis. With the ease credit terms requirements, the production sector will be skittish and employment will be created. Supply creates its own demand will occur

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Japanese Economic runs negative growth as Global Crisis

Japan is reported to enter recession in third quarter as industries and companies have already been cut their investment plan caused by global financial crisis. Japan in this present runs behind America as biggest economy. Japan is also known helper (aider) countries for third countries (developing countries). Japanese Economic is being contracted 0.1 percent in months after decline 0.9 percent in second quarter.
The indication is shown in their Gross Domestic Product (GDP). Official staff said that Japanese GDP declined 0.4 percent based on their estimation after American crisis attack worldwide countries. As the biggest economic in Asia, Japanese GDP is reported lower than Analysts estimation; where estimators and analysts argued that Japanese economic grow 0.1 percent for each quarter.

Together with Germany and Italia, Japan is member of G-8; Japanese government formally has reported that they are in recession with negative growth. Beside Japan, outspoken also said that European counties also run in recession as each government staff said in conference time.

Not only this time Japan runs in recession, in 1990 Japan is also attacked recession (big bubble) and necessary action has been taken and Japan has succeed in recovery process, supported with good export prospect and business investment, while recovery in being processed, Global Financial Crisis made their recovery gone bad. Many industries decided to cut their expansion and long run investment such as open new fabric or invest in capital. Profit also declined on industries after demand for Japanese products is lower. United state is Japanese Export Target and crisis in America has made demand declined significantly. Lower on Japanese products also happened in Europeans countries, Asia and in all world.

Analysts predict that Japan economic will be recovered in near and predict 0.1 percent grow in 2009.

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Euro and Pound declined against USD Dollar

Dollar is appreciated against Euro and Pound on this Tuesday morning opening trade in New York Exchange Market. Declined against Dollar was started yesterday, Indonesia Times Zone. Brokers and Markets have been seeing the G8 Meeting, especially after Bush announced that FED and Federal are behind screen to support Dollar.

Yesterday, in my live trading Marketiva, Euro and Pound was declined more than 100 pips and now the trend still goes on. America is in Greenback reborn after celebrating their Independence Day on July 4th four days ago.

But Dollar can’t move faster and unlimited moving after Euro is fixed by Euro Central Bank at 1.5730/USD and available on previous Thursday a day before the American Independence Day. USD Dollar also strikes JPY Japan. Dollar was opened at 107.10 JPY from Thursday Closing time 105.84. Phenomenal Greenback is happened after Bush said that Government supports the strongest USD and report good news about American Reborn after Financial Crisis Storm.

Bank of Tokyo-Mitsubishi UFJ’ Analyst Osamu Takashima said that Bush Statement on pre-Opening G8 Meeting is only came from his position as President and also came from the Legal Statement. It doesn’t matter, but the important is Bush must restate his statement in the Meeting. Another analyst Kathy Lien from Forex Capital Management said that Brokers haven’t estimate possibility that Greenback is the main factor; otherwise she said that that Brokers are looking new sign, to profit or loss. Analysts agreed that Bush Statement is temporary times. Dollar is strong based on this statement but Bush can’t guarantee that Dollar will continue Strong against major currencies.

Markets stay for a while to see because G8 are also represented senior monetary chief from G8 countries, and FED’ Governor Ben Bernanke also talks in front American Congress on Thursday

Besides that, Germany Industry booked biggest lost in the last 11 years on Mei Data. Legal Data on Monday indicated that Germany had been recessing on second quarter this year. Data reported that Production from Industry sector is declined 2.4 percent on April. Germany Economic Minister claimed that this recession is only temporary fluctuation (Conjunction Trend). England Manufactory Data, published on Mei is also declined. National Statistic Department’ staff said that Manufactory is declined 0.5 percent on between April to Mei and Accumulating 0.8 percent in 12 months based estimating point.

Lowering 0.5 percent rose new fact that England has potentially down to crisis. The statement was said by Capital Economic Analyst Paul Dales.

Thursday closing time in New York Stock Market, Dollar is 1.0260 franc Swiss, and 1.9765 Pound.

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New Record on Oil Price and Its Impact on Other Commodities Market

Both Light and Bret Oil Crude leapt for new $142 per barrel record yesterday, the impact has been attaching food sector (commodity market). Corn and Soybean were attacked and leaping to new record on Friday trading in Chicago Board of Trade (CBOT), but closed at lower price. Heavy rain in Midwest and close to update agriculture report announced next week, Market took profit taking for necessary actions.

Friday morning opening session, those commodities leapt significantly in last 2 days and the main reason is new record for oil crude.

December Shipping for Corn created its new record high $ 7.96 per bushel, but declined to $7.87 USD when closing time. November Shipping for Soybean also leapt new record high around $15.77 USD per bushel and declined on $15.59 USD in closing time. Beside Corn and Soybean, Wheat also declined on Friday, down to $9.12 per bushel for September Shipping.

Analyst from DTN, Elaine Kub said that Nebraska to predict that Federal Agriculture Department will push the market velocity in next week. According to Elaine; market needs slowly price fluctuation and step by step to see the complexity demand. “As you see, brokers decide to get profit taking and they do it carefully, Kub said.”

Troubling in AS Financial Market also impacted CBOT market, especially Rice and Oil. Dow Jones declined significantly around 400 point in recent two days to lowest level since November 2006. Light Sweet Oil touched $142.99 per barrel and closed at $140.21 per barrel in New York Mercantile Market or higher two points than previously.

NYMEX (New York Mercantile Exchange), Metal commodities also moved; Gold for August shipping raised $16.20 USD to $931.30 USD per troy ounce. Silver for June Shipping raised 49.5 cent to $17.62 USD per ounce.

Data processing from Bloomberg, Antara, Marketiva Live Desk, Reuters

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New York Times Highlights News

Top News

Fed Chief Signals He’s Open to More Rate Cuts
By EDMUND L. ANDREWS and DAVID STOUT
Ben S. Bernanke acknowledged that the central bank faces increasingly contradictory pressures of slowing growth and rising consumer prices.


BUSINESS

Regulator to Lift Caps on Fannie and Freddie
By VIKAS BAJAJ
In a move that could help the housing market, a federal regulator said that it was removing limits on the investment portfolios of Fannie Mae and Freddie Mac, the two large buyers of mortgages.

New-Home Sales and Prices Continue to Drop
By MICHAEL M. GRYNBAUM
Sharply lower prices failed to perk up sales of new homes in January, a government report showed, as a closely watched index fell to its lowest point in 13 years.

Dollar Weakens to $1.50 to the Euro
By CARTER DOUGHERTY
The dollar breached the level of $1.50 to the euro on Wednesday for the first time as fears of weakness in the U.S. economy mixed with evidence of resilience in Europe.

Aetna to Still Pay for Colonoscopy Drug
By BARNABY J. FEDER
Bowing to critics, Aetna said it has suspended a plan to stop paying for routine use of a powerful anesthetic in a procedure to screen for colon cancer.

Senator Queries F.D.A. and Disk Maker
By REED ABELSON
A ranking member of the Senate Finance Committee, Charles E. Grassley, has asked about potential financial conflicts among doctors involved in the clinical research that led to F.D.A. approval of the device.

To read those highlight news, follow this
link: http://www.nytimes.com/afternoonupdate

• More Business News

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European In News--BusinessWeek European Insider

EUROPE
Did SocGen's Kerviel Have Help?
Société Générale confirms a second suspect in the trading scandal has been taken into custody—an employee of affiliated brokerage Newedge


EUROPE
Expat Tax Fight Heats Up in Britain
Wealthy foreigners are irate over the British Treasury's ambitious tax plan. Many may leave, and take their assets and investments with them


FINANCE, MARKETS & INVESTING
Deutsche Bank: No Nasty Surprises
Investors breathe a sigh of relief as a 47% decline in quarterly profits meets expectations and there are no huge losses related to rogue traders or subprime loans


ECONOMICS
Will Israel Shackle the Shekel?
So far, Israel's central bank is resisting demands from business and labor to restrain the shekel's soaring rise against the dollar


EUROPE • From The Independent
British Biz Confidence at Five-Year Low
The third straight quarterly decline indicates 2008 will be a tough year. Larger companies are more pessimistic than smaller ones


EASTERN EUROPE • From Transitions Online
Credit Crunch Could Cool Hot Baltics
The global crisis is finally doing what governments wouldn't, reining in the economics of Lithuania, Latvia, and Estonia


EUROPE • From Spiegel Online
U.S. Seeks Tougher EU Flight Security
The Bush administration demands the EU approve a list of air security increases, including armed guards on all flights. Europe may resist


EUROPE • From EUobserver
EU Leans On France to Meet Deficit Goals
European ministers pressure Paris to meet budgetary deadlines. Meanwhile, the Commission stays optimistic regarding a possible recession


EUROPE • From The Independent
GSK Plunges on Further Avandia Woes
Weak sales of the diabetes drug and competition from generics lead pharma giant GlaxoSmithKline to warn shareholders that earnings will fall


TECHNOLOGY • From silicon.com
Consumers Spurn BT Wi-Fi Phones
The BT Fusion, which routes calls off cell networks and onto DSL, has failed to find an enthusiastic audience despite widespread marketing


EUROPE • From Spiegel Online
Female Managers Lift Microsoft Germany
Shrinking populations in Europe are forcing companies to get serious about bringing women into the executive leagues. The software maker is leading the way


POWER LUNCH
Vivendi's Dead, Long Live Vivendi
CEO Jean-Bernard Lévy is a smooth operator who's reinventing the French entertainment company by moving it from movies to video games and music


MANAGEMENT
A French Water Company's Cautionary Tale in China
Suez Group, a global player in water treatment projects, is shying away from China's impoverished northeast after a joint venture in Siping turned bad


NEWS & FEATURES • From Creative Review
Wolff Olins' Intuitive Branding
Despite the choruses of disapproval that met their recent branding work for London's Olympic Games, Wolff Olins stands by its work and philosophy: good brand building is beyond logic


INNOVATION
S&P/BusinessWeek Global Innovation Index
Introducing an important resource for investors who want to participate in the growth of leading-edge companies--with new results every day


EATING AND DRINKING
Making the World Better Through Chocolate
Organic chocolate may not keep the weight off but it is more eco-friendly than the typical bonbon


SPECIAL REPORT: MOBILE WORLD CONGRESS 2008
A New Crop of Sizzling Handsets
At the Mobile World Congress, the world's top cell-phone makers unveiled their latest offerings

taken from the source http://www.newsletters.businessweek.com
to read all article; follow this link http://www.businessweek.com/globalbiz/newsletter/europe/index.html
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Opinion L.A

Today's Headlines | January 29, 2008


Kennedys for Clinton
By Kathleen Kennedy Townsend, Robert F. Kennedy Jr. and Kerry Kennedy
She stands for Democrats and for the nation, these family members say.

Editorial: Trust buster
President Bush's lack of confidence in government lets
down the people who need its help.

Editorial: Keynesian trillions
Bush will spend whatever it takes to secure Iraq, and his legacy.

The sound of artifacts disappearing
By Craig Childs
How much more of the world's treasures do museums need?

A tough choice for L.A. teachers
By Alan Warhaftig
How should United Teachers Los Angeles move on after
A.J. Duffy's gimmicky and confrontational leadership?

Editorial: The disastrous Foothill South tollway
No matter what the governor says, it's an environmental menace.

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Los Angeles Times on World News

World,


Ethnic tension surfaces in Germany
By Kim Murphy
Immigrant crime is a central issue in the Hesse state election, stirring a backlash among younger voters.

Britain denies Iraqi soccer star's dream
By Kimi Yoshino
Fans, ecstatic to see the athlete courted by a top team, are in an uproar over London's refusal to issue him a work permit.

Pakistan says its nuclear weapons are secure
By John M. Glionna
A top official says there is no way a bomb could fall into the hands of extremists.

More World News
LA Times

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Today Opinion L.A

A bitter pill for Big Pharma
By Melody Petersen
Overdependence on 'blockbuster' drugs is taking a toll on the industry.

Why the right loves a disaster
By Naomi Klein
Ideologues use times of crisis as an opportunity to foist their economic policies on desperate societies.

Wrong way for teen drivers
By Mike Males
California's strict law on licenses may not be making the roads safer for young people

More Opinion

taken from LA Times

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Reuters Before the Bell

Reuters Before the Bell news mail

Wall Street actually has something to be thankful for besides the end of the week.

Stock futures are pointing higher as the market keeps cheering the economic stimulus package while thrilling to Microsoft's strong earnings outlook and a report that investor Wilbur Ross is in talks to take over bond insurer Ambac.

There's also a dearth of those major economic reports that always have the potential to derail a bullish mood.

All this could mean stocks could rise for a third day - for the first time since Christmas.

And oil is positively stoked, with U.S. crude up past $90 a barrel.

U.S. Treasuries are mixed. The dollar is up against the yen and the euro.

Harley-Davidson (whose stock symbol is HOG) has apparently yielded some turf on the highways of the United States. Quarterly sales were down there, and so were profits companywide.

Caterpillar, meanwhile, has posted higher earnings on strong sales from abroad.

Until Monday,

Lisa Von Ahn
News Mail Editor

Futures rise on Microsoft, stimulus package
January 25, 2008 07:13 AM ET


Oil rises to $90 as U.S. plan lifts markets
January 25, 2008 07:45 AM ET

LONDON (Reuters) - Oil rose to above $90 a barrel on Friday, lifted by a broader stock market rally as the United States confirmed an economic stimulus plan to ward off a recession in the world's top energy consumer.

Microsoft profit rises 79 pct
January 25, 2008 03:05 AM ET

SEATTLE (Reuters) - Microsoft signaled confidence to a rattled stock market by raising its full-year earnings outlook above Wall Street targets and reporting a 79 percent rise in quarterly profit on Thursday.

Harley-Davidson profit tumbles on weak U.S. sales
January 25, 2008 07:20 AM ET

CHICAGO (Reuters) - Harley-Davidson Inc said on Friday that its quarterly earnings fell 26 percent as sales of its iconic motorcycles tumbled in the United States, its biggest and most important market.

RPT-UPDATE 1-Honeywell quarterly profit, sales rise
January 25, 2008 07:07 AM ET

NEW YORK, Jan 24 (Reuters) - Diversified manufacturerHoneywell International Inc said on Thursday itsfourth-quarter profit and sales rose from a year earlier,helped by strong economic conditions.

Caterpillar fourth-quarter net rises on sales outside U.S.
January 25, 2008 07:44 AM ET

CHICAGO, Jan 25 (Reuters) - Caterpillar Inc. said onFriday its profit in the latest quarter rose more than 10 percentdue to strong sales outside the United States.

Carlsberg, Heineken agree $15.3 billion S&N deal
January 25, 2008 07:16 AM ET

LONDON (Reuters) - Carlsberg and Heineken on Friday finally agreed a cash bid of 7.8 billion pounds ($15.3 billion) to buy and break up Scottish and Newcastle (S&N) to boost the Danish brewer's position in Russia and the Dutch group's presence in western Europe.

France tries to calm jitters on SocGen scandal
January 25, 2008 06:09 AM ET

PARIS (Reuters) - France stepped up efforts to restore confidence in the banking system as Societe Generale faced tough questions on Friday over why it failed to prevent the biggest financial dealing scandal in history.

Continental pilots prepare for potential merger
January 25, 2008 07:37 AM ET

NEW YORK (Reuters) - The pilots of Continental Airlines Inc are preparing for a potential merger and plan to have a say in any deal.

Nintendo jumps after strong results, outlook
January 25, 2008 06:23 AM ET

TOKYO (Reuters) - Shares in Nintendo Co Ltd briefly jumped more than 5 percent on Friday after robust holiday sales of Wii and DS game machines helped more than double its quarterly operating profit and prompted it to raise its outlook above market expectations.

taken fromReuters News Mail
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Opinion L.A

A Clinton twofer's high price


Rosa Brooks
Hillary Clinton's campaign reminds us that her husband's presidency looks good only when it's compared to the Bush years.
Editorial: Yes on Proposition S
Endorsements 2008: Keep L.A.'s communications tax.

Environmentalists out on a limb
By Erica Rosenberg
For a seat at the negotiating table, they are jeopardizing their true role.

Editorial: 'Feebates' for new cars
California should enact legislation that would cut emissions without hurting taxpayers.

A national near-death experience
Patt Morrison
We're getting closer to the light -- the one at the end of the George Bush tunnel.

A big tax blunder
By Michelle Steel
Small-business owners are owed millions in security deposits they paid the state.
Letters to the editor
Views of Gaza

LATimes

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