A
government takeover of Fannie Mae (FNM) and Freddie Mac (FRE) could be announced as early as today, with shareholders facing the grim prospect of having their equity completely erased along with other major executive changes at the companies in a move to stabilize the mortgage market.
Shares of smokeless tobacco company UST surged 25% on Friday on word that Altria (MO) will buy its smaller rival for $10 billion with a deal expected as early as tomorrow morning.
Japan-based Nomura Holdings may consider a
strategic investment in Lehman Brothers (LEH), pending a review of the investment bank's operating results as early as this week.
Boeing and machinists work to avert strike : Boeing (BA) was in last-minute discussions last with the union for its largest labor group to avoid a costly strike, which could cost the Company as much as $100M per day and further delay delivery of the 787 Dreamliner. However, the two sides
failed to reach an agreement after two extra days of talks failed and the Company's 27,000 machinists walked off the job Saturday.
Despite the recent fall in crude oil and my expectation that it will close the year below $100 somewhere in the nineties, the overall market will likely end the year with modest losses (5%) and continued high volatility due to the worldwide slowdown and domestic uncertainties such as rising unemployment, the presidential race, and the continued housing recession. Defensive sectors such as consumer staples,
healthcare , and
tobacco should continue to outpace the overall markets for the remainder of 2008.
$7.04 (09/07/08)
