WALL STREET JOURNAL
The LiveTV unit of JetBlue Airways (JBLU) is buying Verizon Communications’ (VZ) Airfone network, the Wall Street Journal reported…As Lehman Brothers Holdings (LEH) is about to report a second quarter loss of about $2B, the firm is closing in on raising over $5B in new capital, the Wall Street Journal reported. Once source of Lehman’s new funding is reportedly the New Jersey Division of Investment…FINANCIAL TIMES: The Financial Times reported that General Electric’s (GE) NBC Universal and British private equity firm GMT Communications Partners are expected to soon acquire Bigpoint, a German-based computer games website…INDEPENDENT: According to the Independent, the credit crunch has cost the jobs of about 100 bankers at Barclays (BCS). The bank cut about 20 individuals on the leveraged finance team and will reportedly cut 80 more in investment banking and IT support..
Where’s the market’s recession rally?-WSJ
Recessions usually spark market rallies, but a combination of factors, including earnings forecasts, interest rates and the economic outlook, are not able to create any sparks this time, according to the Wall Street Journal “Heard on the Street.” The column suggests that the current difficult economic conditions have about six months to go, or more. Commenting on Friday’s new unemployment numbers, Merrill Lynch economist David Rosenberg wrote that they suggest “we are barely half-way through this downturn.” And if earnings continue to disappoint, stock valuations may face a nasty downturn. Hope may come if the Fed can help to turn things around with further interest rate cuts. One thing’s sure: Pickers of stocks aren’t getting any help.
Blackberry touch screen may steal 3G thunder-Engadget
Thunder, the forthcoming Research in Motion (RIMM) touchscreen, may put the brakes on the 3G iPhone this week.
Global bond markets are very pessimistic about growth and inflation-WSJ
“More bond markets are at extremes,” says Alan Ruskin, the head international strategist at RBS Greenwich Capital. “We’ve got a world divided between people saying we’re concerned about the inflation repercussions of high oil…and those worried about the growth implications.” And the warning signals are everywhere, reports the Wall Street Journal. In Europe, there’s concern over a deep economic slowdown. In China and India, worries are over inflation. Markets worldwide are falling. Another indicator: short-term interest rates are much higher than long-term rates, which is unusual and troubling about the state of economies. “We’re no longer looking at one harmonized world,” says Mohamed El-Erian, at Pacific Investment Management Co. The “shock embedded in the energy and food-price increases has caught countries around the world in different economic and financial circumstances.”
U.S. equity futures now point to a higher open; Lehman to raise about $6B
U.S. equity futures are pointing to a slightly higher open. Lehman Brothers Holdings (LEH) announced that they planned to raise $6B billion in capital through a stock offering. They also expect a second quarter loss of about $2.8B due to the credit crisis. The credit crisis reminders have been hitting the markets for the past week and lead to weakness in the financial sector and ultimately to the rest of the market. Shares of Lehman Brothers are currently down more than -7.5%.
Pre-Market Movers: Ahead of the Bell
The action is focused in a few select names this morning.
