|
|
|||
|
|||
|
|
Valentine’s Day Money Check List MoneyNews
(Headlines - scroll down for full stories)
Shares in the No. 3 U.S. manager of institutional bond funds, BlackRock Inc., jumped following rumors that the world's largest securities company was set to take a 49% stake, according to the Wall Street Journal. That stake might come at the expense of Merrill's fund management business, which currently accounts for less than 10% of its total revenue. If the deal gains traction the result would bring together BlackRock's institutional bond management expertise with Merrill's domination of retail securities trading and would form a financial behemoth with over $1 trillion in assets.
Story Continues Below
The news sent shares in BlackRock Inc., 21% higher in early New York trading Monday, sending the market capitalization of the company to $9.3 billion. The previous record acquisition in the asset management industry came in 1997 when Merrill bought Mercury Asset Management for $5.3 billion. BlackRock currently manages $453 billion in assets of which $305 billion are bonds. Merrill Lynch manages assets totaling $544 billion. While Merrill's target is smaller than both PIMCO and Legg Mason's Western Asset Management division, in terms of bond trading, it would mark a strategic shift from CEO Stan O'Neal. In November Mr. O'Neal revealed that he would "survey the landscape," rather than reorganize internally filling gaps in areas such as energy trading, which has been his focus since becoming CEO in 2002. BlackRock grew assets by 32% last year, while profits reached $233.9 million on revenue of $367.3 million.
Editor's Note:
 2. Buying opportunity in Japanese stocks? Asian stocks got off to a bad start Monday led by a 2.3% tumble in Japan's Nikkei Dow index. Investors sold stocks in fear that a stronger yen would harm exporters earnings. The Nikkei slumped 380 points back below 16,000, which marked a six-year high in the index. But investors might want to consider taking advantage of the slide in the Tokyo index, with Japanese growth likely to outpace American growth in 2006. According to Jim O'Neill, head of global economic research at Goldman Sachs in London, it has becoming increasingly likely that Japan will outpace the U.S. in 2006 and 2007. This year Mr. O'Neill expects American growth will be around 2.6% while Japan will expand by 3.4%. Next year, U.S. growth should pick-up marginally to 2.7% while Japan will settle back to 3%. On Thursday, Mr. O'Neill expects the fourth quarter reading of Japanese GDP to show that the Japanese economy surged 4.2% in the fourth quarter. He says he won't be surprised if GDP grew by more than 5%. Mr. O'Neill says his expectations may even be too modest and that Japanese domestic demand may already have eclipsed that of the domestic American economy.
But Goldman Sachs says that if the forecast proves correct, the change in the composition of Japanese demand could have profound effects for many financial markets, including gold, the New Zealand dollar, commodities and Japanese equities.
Editor's Note:
3. Bush Fed Pick Draws Some Ire When it comes to the members of his economic team, President Bush has pretty much gotten what he wanted as President, Ben Bernanke being the latest example of that. And most of his picks have earned high praise from economists and market watchers. But that streak could be ending with the President's pick of Kevin Warsh, a 35-year-old White House lawyer, to the Federal Reserve Board of Governors. Critics say that Warsh has no Ph.D in economics and that his only qualifications is that he is a loyal White House hand and thus a political appointee to the Fed Board more than anything else. "Kevin Warsh is not a good idea," former Fed Vice Chairman Preston Martin, who was appointed by Ronald Reagan in 1982, told Bloomberg on Friday "If I were on the Senate Banking Committee," which must approve Fed nominees, "I would vote against him." President Bush also nominated University of Chicago professor and Harvard University economics Ph.D Randall Kroszner to the Board. Kroszner, 43, represents a sharp contrast to Warsh, critics say. "Kroszner is a distinguished academic," says former governor Edward Gramlich. "The other one, Kevin, I don't know." Bloomberg News reports that the political connections between Warsh and the White House are strong. "Campaign disclosures show that Warsh gave $1,000 to Bush's 2000 election campaign and $1,000 to his 2004 re-election bid," says Bloomberg. "Warsh is married to Jane Lauder, a granddaughter of cosmetics pioneer Estee Lauder; Jane Lauder's father, Ronald Lauder, was U.S. ambassador to Austria under President Ronald Reagan and has donated $104,000 to the Republican National Committee since the 2000 election campaign." The two picks give Bush claim to all seven Fed Governor appointees. But Warsh could dull some of that luster and some are wondering whether Bush will reconsider the choice. But the President seems to have the votes to confirm his nominees. "The reaction to Warsh contrasts with the praise Bush has received for his other appointments," says Bloomberg. Former Vice Chairwoman Alice Rivlin, who was named to the board by Democratic President Bill Clinton, said in October said that Bush's "excellent appointments" to the Fed "are in the tradition of strong, well-qualified, non-ideological economists." Rivlin declines to comment about Warsh, on the grounds that she isn't familiar enough with him." Former Securities and Exchange Commission Chairman William Donaldson, Stephen Friedman, former director of the National Economic Council, JPMorgan Chase & Co. Chairman William Harrison and Morgan Stanley Chairman John Mack are all expected to testify on Warsh's behalf before the nominating committee.
"Kevin has spent a lot of time observing and being in the financial markets," said Friedman, former chairman of Goldman Sachs & Co. "You want someone who understands the economy, with the frictions in it. Life doesn't always work like the models." Bush has the political muscle in the US Senate to push Warsh through, as well. Senator Richard Shelby, the Banking Committee chairman, told Bloomberg that he expects an easy confirmation. "He's very smart," the Alabama Republican said. "He'll sail through."
4. Valentine's Day Money Check List Depending on whom you talk to, Valentine's Day is either one of the best or worst days of the year. What's undeniable is that, no matter which side you come down on, there will be no shortage of marriage proposals rendered over candle-lit dinners tomorrow night. If you're thinking of taking the plunge, make sure your finances are in order before walking down the isle, says Brenda Blisk, CFP and senior vice president at Legacy Advisors. Blisk recommends the following to prepare your finances for married life: 1. Share information. While one spouse may be responsible for managing the household finances, it is in the best interest of both to know where accounts are kept and who has been made responsible for their estate in the event of death. 2. Assign beneficiary designations on retirement plans and estate documents. "Couples often neglect to assign their beneficiaries before tying the knot," explains Blisk. 3. Solidify your investment strategy. Making sure that both spouses understand the financial objectives of their investments can assure a healthy financial marriage, says Blisk. 4. If one spouse is not tuned into the finances, be sure there is someone else who is. Often one spouse lacks the financial acumen to handle investment and money issues. Find a trustworthy third party who can help. New Anti-Aging Steps to Save Your Sex Life & Keep Your Body Young. If you are even remotely interested in slowing down the effects of aging on your sex drive and performance, and you want to continue to feel young and energetic as the years pass, then this could be the most important report you read this year. Go here now.
|
|
|||||||||||||||||||||||||
Print Page 
Forward Page 
|
| All Rights Reserved © 2008 NewsMax.Com |