World Business

Buyers emerged in the last half hour of commercial Friday on hopes that world leaders would agree to resolutions to stop the panic

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U.S. stocks clawed their street back from another day of heavy losses Friday considered in the state of the global financial panic continued to take its toll. In the last half hour of trading, investors were snapping up bargains, while others hold some hope that world leaders that are junction this weekend would imagine ways to alleviate the pain in the markets.

But the Dow and S&P 500 index finished degrade for the eighth session in a row.

At around 4:15 p.scuffle. ET Friday, the blue-chip Dow Jones industrial average fell 128.00 points, or 1.49%, to 8,451.19. The broader S&P 500 index shed 10.70 points, or 1.18%, to 899.22. The tech-heavy Nasdaq composite index managed to finish higher by 4.39 points, or 0.27%, to 1,649.51.

These drops follow Thursday’s losses of 7.33% for the Dow, 7.62% for the S&P 500, and 5.47% on account of the Nasdaq.

At one point in the opening stages Friday, the Dow industrials had tumbled over 700 points to 7,882.19. The market action came amid a burgeoning emergency in the world financial system. Markets in Europe and Asia suffered deep losses, with Britain’sitting benchmark index hitting a five-year low and German stocks plunging 12% at one trifling concern.

Friday morning, President George Bush said his distribution is taking steps to increase deposit assurance, expand loans to corporations, and dart in funds into the banking system.

Friday’s session follows Thursday’session devastating rout in U.S. equities amid an escalation in panic-driven selling. A 679-point detriment in the Dow industrials sent that mart benchmark crashing below the 9,000 level on Thursday, to terminate at 8,579.19, its the lowest horizontal line in five years.

On the New York Stock Exchange Friday, 29 stocks declined in excellence for every pair that advanced. The ratio on the Nasdaq was 21-5 negative. Trading was active.

Bonds fell as the overnight dollar Libor rate fell. The dollar index was higher. Gold futures fell. Oil futures tumbled to $78.14, into disgrace $8.45 per barrel in Nymex trading.

Thursday’sitting declines bring the Dow’s loss for 2008 to 35.3% — worse than 1937’s decline of 32.8%. The S&P 500 is now down 38% — also the foil least bit since 1937, under which circumstances the Nasdaq has also dissolute 38% this year.

“Policy makers and central bankers will do what they do, deluge the body by fluidity. When participants’ angst shifts to confidence, the markets will calm into disrepute. But the selling will be exhausted before the outlook is open,” wrote Miller Tabak strategist Phil Roth in a note Friday.

The VIX equity mutability index, the place of traffic’s favored “fear gauge”, spiked to a high of 76.94 Friday afternoon, before settling at 68.39.

President Bush said the government’s pecuniary retake plan was invading enough and big sufficiency to work, but would take time to fully kick in. “We can make plain this crisis and we will,” he said in brief remarks from the White House Rose Garden.

Bush spoke as finance ministers and central bankers from the Group of Seven — the United States, Japan, Britain, Germany, France Italy and Canada — were on Washington for a weekend meeting. G7 ministers meeting in Washington are under pressure to produce coordinated program to cope with global financial crisis and a looming recession. An Associated Press report said the president famous that major Western countries were working together in an essay to stabilize markets and end the spreading panic, including coordinated cuts in interest rates. “Through these efforts, the world is sending each unmistakable signal. We’re in this together and we’ll come through this together,” Bush said.

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ANCHORAGE, Alaska Alaska lawmakers met behind closed doors Friday to sift a politically charged ethics report into Gov. Sarah Palin’s firing of her quality common safety commissioner.

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The Republican vice presidential nominee has been accused of firing a state commissioner to settle a family dispute. But the give out, to be released Friday afternoon, is also expected to have to do with in continuance whether Palin’s husband meddled in state affairs and whether her administration inappropriately accessed employee medical records.

Sensitive to accusations of political turn, lawmakers ordered the report be held under the utmost secrecy. Members of a law-making committee were forced to sign a confidentiality agreement under the jurisdiction reading it, and each page contained a special watermark and a unique number to trace it if it was leaked.

The inquiry, approved by a bipartisan promised, began face to face with Republican presidential nominee John McCain named Palin his running mate.

Since sooner or later, yet, the case has been dogged by the agency of accusations of political power of impelling, particularly after the Democrat overseeing the case, Sen. Hollis French, predicted every “October surprise” for the McCain campaign.

As lawmakers filed into a meeting scope in downtown Anchorage, they were greeted by Palin supporters wearing red clown noses and carrying balloons, cheering that the circus was in town.

Some Republicans have questioned why the committee has insisted on finishing the investigation Friday, which they said was some arbitrary date meant to damage the McCain-Palin campaign with less than a month to fare before Election Day.

Before lawmakers broke for their closed session, Republican state Rep. Peggy Wilson questioned whether the committee was rushing to a close without time to know fully the estimated 300-page fame and 1,000 pages of supporting documents.

“This is a pretty solemn thing and I slip on’t feel comfortable plane talking about it until I’ve got it all read,” Wilson said. “I don’t know if anyone else, maybe they’re speed readers, but I spent hours in continuance it yesterday and I didn’t receive time to read it all.”

But the committee chairman, Democratic Sen. Kim Elton, offered no delay.

“I could have spent four days, if it were not that I do believe that within the first two to three hours, I had a good brains of the sort of the investigator’s findings were,” he said.

The legislative panel’s investigation - one of two that are ongoing - focuses on Palin’s firing in July of Public Safety Commissioner Walter Monegan. Monegan says Palin and her husband pressured him to spirit Mike Wooten, a state trooper involved in a nasty put away and custody dispute with the governor’s sister. When Monegan resisted, he says, he was fired.

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General David Petraeus does. And as President Bush often says, he takes the advice of top generals.

As contriver of the troop surge that helped turn the Iraq war into an exitable and low-level conflict, Gen. Petraeus will soon become head of the US Central Command and thus amenable notwithstanding American military operations in Afghanistan.

Several NATO commanders there say this seven-year old declared hostilities, launched after 9/11 to oust both the Taliban regime and Al Qaeda, has become unwinnable and that only political expiation by Taliban insurgents can bring it to a close. A report through US intelligence agencies finds the recent escalation of the war has put Afghanistan in a "downward spiral."

Last month, Taliban figures and the Afghan government reportedly met in Saudi Arabia. (Both sides, appropriately, deny it.) Such an unusual breakthrough, however, led Petraeus to give advice this week on in what condition to handle such talks: "You've got to set things up. You've got to know who you're talking to. You've got to have your objectives straight – totally the rest of this stuff."

That sounds greater degree of like Senator Obama'sitting carry toward than each Mr. Bush'sitting or Senator John McCain's. Sen. Obama would keep a conditional unclose door to talks through terrorist groups and terrorist-backing nations such similar to Iran.

Now, either he or Sen. McCain may chronicle the White House with the US possibly being asked by its Afghan allies in Kabul to support not only talks with some or wholly of the Taliban factions, but peradventure a deal to attend them into a coalition management. (The two candidates are quibbling over troops levels rather than the issue of talking with terrorists.)

The threshold set for Taliban leaders to be folded into a new regime should be high. They must renounce violence and Al Qaeda, and swear allegiance to a democratic Constitution. They should also accept a temporary presence of US troops.

Why would the Taliban take such steps?

The group, which isn't as unified as during its 1996-2001 rule, may not subscribe to Osama bunker Laden'sitting vision of a worldwide Muslim caliphate. Afghan culture demands brotherly reconciliation. The Taliban is also facing potential ouster from Pakistan as a new government there appears to be stepping up military operations against militants at the same time the margin.

Some Taliban leaders may be enticed to split off and cut a deal with the elected Afghan government of President Hamid Karzai, especially with elections slated for next year. The Taliban knows it is not current with the masses and may want to use elections, rather than fire-arms, to gain back support for their views of running an Islamic brotherhood.

But those are a lot of if's. First, the US mustiness close whether to accord. a strong wink to Mr. Karzai on talks and the right provisions for them.

As they exist seized of by the financial pinch, McCain and Obama should stake out a locality on this issue.

The top general has. He knows peace doesn't always come out of the barrel of a gun.

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HARTFORD, Conn. Connecticut’sitting Supreme Court ruled Friday that gay couples have the equitable to unite in marriage, construction the state the third back Massachusetts and California to legalize such unions. The ruling comes just weeks face to face with Californians go to the polls on a historic gay-marriage ballot question, the first time the issue direction be put before voters in a express where same-sex couples are legally wed.

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The 4-3 ruling is the first time that a state that had willingly offered every alternative to spousals was told by a court that civilized unions aren’t enough to protect the rights of gay couples. Connecticut was the principal state to spontaneously pass laws to affirm civil unions.

“I can’t believe it. We’re thrilled, we’re absolutely in raptures. We’re lastly going to subsist able, after 33 years, to get married,” said Janet Peck of Colchester, who was a plaintiff through her colleague, Carole Conklin.

“I’m just ecstatic. It’s such a relief, the joy of it,” said not the same plaintiff, Jody Mock of West Hartford, who sued with partner Elizabeth Kerrigan.

In the majority opinion, Justice Richard N. Palmer wrote that denying marriage to same-sex couples would create separate standards.

“Interpreting our state constitutional provisions in accordance with firmly established equal protection principles leads unavoidably to the finale that gay persons are entitled to marry the otherwise qualified same sex partner of their choice,” Palmer wrote.

The Family Institute of Connecticut, a political action group that opposes gay matrimony, called the ruling outrageous.

“Even the legislative body, as liberal as ours, decided that marriage is between a man and a woman,” said executive director Peter Wolfgang. “This is about our right to govern ourselves. It is bigger than gay spousals.”

Attorney General Richard Blumenthal said the ruling goes into effect Oct. 28 when it is implemented by action of the of the Superior Court. There will be in no degree appeal, he said.

Gov. M. Jodi Rell before-mentioned she disagreed with the reigning.

“The Supreme Court has spoken,” she said. “I work not believe their voice reflects the majority of the the community of Connecticut. However, I am also firmly convinced that attempts to reverse this decision - either legislatively or by amending the state Constitution - will not meet with success.”

State Sen. Michael Lawlor, chairman of the legislature’session Judiciary Committee, said he expects the General Assembly be disposed pass a gay wedlock law next year codifying the Supreme Court reigning.

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But more of this trust can be restored simply and inexpensively. My creative? What the Food and Drug Administration (FDA) did for food-product labeling must have being done because of financial institutions. This, more than the over-reactive overregulation that's sure to come, is every important gait to restoring the national's trust in financial firms once the dust settles.

Thanks to FDA guidelines, whether we're buying vanilla yogurt or meat lasagna, we can look at the label and be sure what we're acquisition. How much plump? How much sugar? How many calories?

These questions are answered before we ever pervert with money. We may choose to regard as unknown them for a Ben & Jerry's binge, but that'session our own business. We don't need to be nutritionists to make an informed judgment.

When you put your money in a bank, brokerage not soft, insurance company, or other financial institution, end you know – between their own interior policies and the regulatory requirements – how much, toward example, of your dollar the firm is holding in husband for available ready money and to cover sour debts? Is it 10 cents? 30 cents? If this information were useful to you in a simple way when choosing where to simpleton your hard-earned money, wouldn't that be appealing?

As a former senior executory at a brokerage firm with responsibility at the time for $21 billion in assets, I had to sit through frequent meetings to discuss our standing versus the regulatory capital requirements with respect to brokerage firms, and I can enumerate you we boiled it down to a sincere compute that everyone in the room – economics expert or not – could understand.

All I'm asking is that something like this be made simple and accessible to potential and actual customers … to you. I dare all financial institutions to be the foremost to do this.

Of course, there'sitting risk in transparency, in the same manner with it tends to show "warts and all," and can have existence gamed without proportionate miss. That said, worthy financial firms might come to see it as a competitive advantage.

For example, I can set up a no-fee checking account at thousands of banks. Given the parallelism of products and services among them, a good "nutrition" label that tells me the health history of the company and what will happen to my money would be a great way to stall out from the mob of choices I face as a consumer.

Of course I could read their 10-K report, peruse their P&L or balance sheet, goal who has time for that? And who has the expertise? Our current crisis has rendered such information suspect at best.

Again, I shouldn't have to be a nutritionist – or a detective – to figure out what I'pot-pourri eating. And I shouldn't have to be a certified public accountant to understand what financial firms do with my money.

The reaction to this meltdown is most certainly going to be excessive order designed by congressional committees. If they're anything like current regulations, good luck trying to configuration out what they will mean for you.

With mark-to-market, debt swaps, Basel II and the like, we're very likely to expiration up with niggard in addition than a wishwash tsunami, with as much chance of achieving better outcomes as past regulations have created. Take a look at where we are today on the supposition that you wonder about that.

We are starved for solutions, and here I am – nor one nor the other a presidential candidate nor a policy wonk – suggesting something stupidly simple: Let'sitting come up with five fourth book of the pentateuch; census of the hebrews or fewer – ones that must have existence public and fully disclosed at totally times, that tell us where we're putting our money. Forget "buyer beware" – this is informed consent.

Also, feel free to voice your current bank, brokerage firm, or insurer and ask: How much of the money I put in do you hold in reserve? If you find common that answers it right facing the bat and in a simple, understandable means by which anything is reached, let me be steady … I just may be their next new account, right after you.

• David Peck is president of Leadership Unleashed, a California-based executive coaching constant, originator of "Beyond Effective: Practices in Self-aware Leadership," and a contributor to Business Week Online.

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OSLO, Norway Finland’sitting ex-president Martti Ahtisaari won the Nobel Peace Prize on Friday for his efforts to build a enduring peace from Africa and Asia to Europe and the Middle East.

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The award however drew some criticism for not highlighting China’session crackdown in Tibet and steady human rights activists.

Speculation had focused steady using the prize to honor the 60th anniversary of the signing of the U.N. Declaration of Human Rights by singling out dissidents in China, Russia and Vietnam, overshadowed the decision.

“It is an opportunity missed to change the world for the more appropriate by encouraging reform in China,” said Edward McMillan-Scott, a British member of the European Parliament and founder of its Democracy and Human Rights Instrument.

He had nominated Chinese human rights lawyer Gao Zhisheng and AIDS and environmental activist Hu Jia for the prestigious prize, two of the 197 nominations that were received by means of the Feb. 1 deadline.

“I am aware that there was intense diplomatic distress from Beijing after widespread reports - welcomed worldwide - that Chinese dissidents were being nominated,” McMillan-Scott aforesaid.

On Tuesday, China’session foreign ministry suggested that it hopes Chinese full of heart rights activists will not get the compliance of this year’session Nobel Peace Prize, saying the award should go away to the “just people.”

The Norwegian Nobel Committee said it honored Ahtisaari for important efforts over more than three decades to resolve international conflicts, a return to form for the prize which has skewed toward global warming and even economics.

“These efforts have contributed to a more peaceful world and to ‘fraternity between nations’ in Alfred Nobel’s spirit,” the committee said in announcing the prize.

By selecting Ahtisaari, 71, for the prize, the Nobel committee returned its focus to traditionary peace work after tapping meteorological character campaigner Al Gore and the U.N. panel on climate modify last year.

“He is a earth champion when it comes to peace and he never gives up,” said Ole Danbolt Mjoes, the chairman of the Norwegian Nobel awards committee.

The award, he said, was in line by newly come Nobels to other reconciliation mediators, notably Jimmy Carter in 2002 and U.N. Secretary-General Kofi Annan in 2001.

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IBM rushed out its earnings report a week early yesterday, and no surprise: In a world of financial primeval matter Big Blue’s earnings look like the Rock of Gibraltar. The company before-mentioned its quarterly toil income rose 22 percent, to $2.05 a share. That was 3 cents higher than analysts had expected. Net income came in at $2.8 billion, and revenues rose 5 percent to $25.3 billion. It has nearly $10 billion in cash. For more item, check out the Times story.

IBM’sitting stock had dropped nearly 20% in recent weeks, in the way that the decision to pre-release this bit of gain news seemed to be aimed at reversing the momentum and portraying IBM as a safe haven from the financial storm.

The visitors’s shares, which dropped 5 percent yesterday to $90 were up as a great deal of viewed like 5% in pre-market trading. Pundits were predicting that IBM’s good news might lead a rally on Wall Street today. Bob Djurdjevic, principle analyst at Annex Research, says IBM’s stock has been unfairly worn by the agency of use up by traders, but he’s skeptical that the stock will stage a greater turnaround against the negative forces in the market. “It remains to be seen granting that facts trump can trump-card emotions,” he says.

Another important element of IBM’s report was that it re-affirmed its strong earnings direction for the year. That’s a impertinent move in the face of German software huge man SAP’sitting announcement attached Monday that its sales fell off a cliff in the last two weeks of September as corporate customers curtailed spending on information technology.

Which signal is right? It’s not as simple as that. While both companies sell primarily to large corporations, SAP is unable to exist without in continuance large software license sales that are typically wrapped up at the end of the quarter. It’sitting vulnerable to delays in spending. IBM has a much steadier business, since more than half of its revenues come from services.

It’s possible that SAP’sitting troubles will be short-lived and, formerly panic recedes, its customers will make force commitments. But unruffled if the chaos ends, there’sitting still a recession on the way, which seems likely to slow revenue growth for both companies.

IBM is a well-run company that’s adept at dealing with economic turmoil. It decree have to become so much as more efficient to keep its earnings in succession track. But it also has the advantage of all of that specie. It’s likely to buy away from the thicker settlements stock aggressively, which will dislodge shares from the market and boost the earnings-per-share verse.

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Stocks in the news Thursday

From Standard & Poor’sitting Equity Research

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The Wall Street Journal reports that MetLife (MET) freshly approached period of life and property insurer Hartford Financial Services Group (HIG) about a merger action, citing people well acquainted by the talks. The talks did not lead anywhere, these people told the newspaper.

IBM (IBM) posts $2.05, vs. $1.68 a year ago, third cut to pieces EPS from continuing operations without interruption 5% revenue rise. Street was looking for $2.01. It continues to expect full-year 2008 EPS of at least $8.75, year-to-year growth of 22%.

The Wall Street Journal reports that National City (NCC) is in talks with a digit of banks about a possible sale, citing people familiar with the situation. PNC Financial (PNC) and Bank of Nova Scotia (BNS) are in the midst of the potential bidders, the article added.

TJX Companies (TJX) sees lower-than-expected $0.55-$0.58 third quarter EPS from continuing operations, primarily reflecting lower-than-expected sales. Says this range is based upon estimated consolidated comp-store sales growth for the quarter of from one place to another flat to up 1%. Due to lower guidance, now expects fiscal year 2009 EPS from continuing operations to be in the range of $2.26-$2.31, with comp-store sales growth of in all parts of 2%. Posts 1% lower September same-store sales, 3% higher total sales.

Abercrombie & Fitch (ANF) says absent notable improvement in macroeconomic environment and a return of consumer confidence, it expects rife tend to be steadfast through the fourth quarter. In that event, ANF says third quarter EPS would be in the range of $0.74-$0.76. Second half results would befall appreciably below its more recent guidance. Additionally, ANF posts 14% lower September same-store sales, 7% sink total sales.

Gap (GPS) posts 11% lower September same-store sales, 6% lower sum sales.

M/I Homes (MHO) reports new contracts for third allot were down 19%, homes delivered were down 29%, its cancellation rate was 32%. Notes sales value of backlog of homes at Sept. 30, 2008 was $212 million, with backlog units of 781 and an average sales price of $272,000.

Men’session Wearhouse (MW) cuts $0.36-$0.40 third quarter adjusted EPS view to $0.24-$0.28. It says retail operations in the U.S. have practised reduced traffic levels from prior expectations, largely a direct result of reflection of the recent turmoil in the credit markets which appears to be impacting consumer buying patterns and levels. Wedbush Morgan cuts estimates, target; maintains hold.

Quest Software (QSFT) says it authorized modified “Dutch auction” tender offer to repurchase $135-$400 million of its common stock at an expected price of $13.25-$15.50 a quota. Based on midpoint of the price range, the planned buyback is 9%-26% of QSFT outstanding shares. Separately, appoints President Doug Garn in the same manner with CEO and a director, Vinny Smith as executive chairman of conclave of directors.

Advanced Medical Optics (EYE) lowers 2008 reward guidance to $1.17B-$1.20B, adjusted EPS to $0.70-$0.80.

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From Standard & Poor’s Equity Research

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GOLDMAN KEEPS BUY ON IBM

Goldman Sachs algebraist David Bailey says IBM’session (IBM) third quarter revenue was short of forecasts, but EPS was in line.

Bailey sees a downward bias for all hardware companies and doesn’t believe any of his companies will make it through nearest 12-18 months unscathed. However, he thinks those through the most EPS resiliency and dissimilitude will outperform; he recommends owning IBM and Hewlett-Packard (HPQ) in the place of the reason that he expects them to see the least amount of EPS leakage, due to cost cutting, buybacks and other non-operational items.

For IBM, he sees $8.79 2008 EPS, but cuts $9.80 2009 estimate to $9.35. He cuts $140 price target to $110 on historical trough multiple of 12.5 general condition of affairs 2009 EPS. prize.

STIFEL KEEPS BUY ON QUEST SOFTWARE

Stifel algebraist Todd Weller says he views Quest Software’s (QSFT) tidings that it plans a meaningful share buyback program and named a new CEO with the current CEO becoming chairman as positive.

With respect to the share buyback, Weller notes this issue became a bit contentious afterwards last quarter’session conference call, where QSFT said it was weighing acquisitions vs. a share buyback. He thinks management indicating a potential tender of $13.25-$15.50 validates his witness that QSFT shares below $15 are extremely inferior.

Regarding the CEO change, he believes it could increase QSFT’s perceptibility on the Street. He has a $20 price target on the post.

WEDBUSH LOWERS TARGET PRICE ON MEN’S WEARHOUSE

Wedbush algebraist Betty Chen says softness in the tailored clothing business led Men’s Wearhouse (MW) to cut its third quarter adjusted EPS guidance to $0.24-$0.28.

In turn, Chen cuts her below-consensus third quarter EPS appraise to $0.25 from $0.36 and fourth quarter’session to $0.22 from $0.23, most important to a new fiscal year 2009 (January) estimate of $1.40, vs. $1.51 previously.

She says, with the cyclicality in the MW business and her belief for a prolonged macro-economic downturn that could continue to pressure near-term earnings, she’s maintaining a hold rating upon the body MW. To reflect lower EPS estimates, she cuts her $19 price target to $17.

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Analysts’ opinions upon the body stocks in the advice Thursday

From Standard & Poor’s Equity Research

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S&P MAINTAINS STRONG BUY OPINION ON SHARES OF INTERNATIONAL BUSINESS MACHINES (IBM; 90.55):

IBM announces preliminary third quarter results, including EPS of $2.05, vs. $1.68, and $0.03 aloft our estimate. Revenue rose 5%, aided by currency effects, but missed our 8% shooting estimate. Gross margin topped our forecast. But, we silent see advantages from the company’s large-scale operations and recurring revenue streams from services we dare figure IBM more attractive than most peers, despite economic headwinds. On faint adjustments, we trim our EPS estimates to $8.95 from $9.00 for 2008, and to $10.10 from $10.35 for 2009. We are also lowering our target price to $135 from $165. -T. Smith-CFA

S&P MAINTAINS HOLD RECOMMENDATION ON SHARES OF NATIONAL CITY CORP (NCC; 2.23):

According to unconfirmed report in the Wall Street Journal, NCC may be in discussions to sell itself, possibly to PNC Financial (PNC; 68) or Bank of Nova Scotia (BNS; 41). We are agreement our $3 target price, based on a sharp discount-to-peers 0.95 times our tangible book value estimate of $3.16 for share, reflecting the current serious challenges to NCC’s credit quality. We also think NCC’s almost $15.4 billion in Tier 1 capital at the end of the second quarter, 11.08% of risk-adjusted assets, should be high enough so as to not require NCC to seek additional capital in rest of 2008. -E. Oja

S&P MAINTAINS HOLD RECOMMENDATION ON SHARES OF AMERICAN INTERNATIONAL GROUP (AIG; 3.19):

AIG said it entered into a securities lending agreement through the NY Federal Reserve Bank top $37.2 billion of securities. It is our understanding the Fed action was necessitated by a decline in the rate highly of subordinate backing of a securities lending transaction, reportedly because AIG invested the collateral in mortgage-backed securities that cruel in appreciate, making it difficult for AIG to meet a collateral call. We view this while troubling and see further risk to AIG’s turnaround plan. We are cutting our target price by $1.50 to $4, assuming further book-value decline. -C. Seifert

S&P MAINTAINS HOLD OPINION ON SHARES OF WACHOVIA CORP. (WB; 5.06):

An unconfirmed report in the Wall Street Journal says that talks between Citigroup (C; 14) , Wells Fargo (WFC; 32) and the U.S. government regarding the future of WB have stalled. The parties are said to be disputing the portion of deposits, loans, securities, and calm WB’s computer banking connected view. WSJ also reports that the two Citi and WFC consider been surprised by the agency of the concentration of low-quality assets. We believe a deal will get done, but we think the WB franchise is being further damaged as talks drag on and the likelihood of government support being part the deal is increasing. -S. Plesser, M. Albrecht

S&P LOWERS OPINION ON SHARES OF AMERIPRISE FINANCIAL TO HOLD FROM BUY (AMP; 25.81):

AMP said late yesterday that for the period of the third part region, unrealized losses without interruption its investment portfolio grew to in all parts of $1.5 billion from $915 million, as credit spreads widened. It expects to post after-tax realized losses of in addition than $200 million for the quarter, related to investments in troubled firms. Earnings should be further pressured by support of money market funds, but AMP expects some carry from amortized reparation adjustments. We are cloudy our 2008 EPS estimate to $2.45 from $3.78 and our mark price to $30 from $48, 12.2 seasons our 2008 EPS forecast, a steep discount to mate multiples. -M. Albrecht

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