By Jason SimpkinsAssociate Editor Bunge Ltd. (BG), fertilizer and oilseed producer, said it will buy Corn Products International Inc. (CPO) for $4.4 billion, or $56 a share, a 31% premium to its Friday closing price. The purchase will help Bunge expand its product line to include Corn Products' starches, syrups and sweeteners. The deal will […]
Archives for June 2008
June 2008 - Page 4 of 13 - Money Morning - Only the News You Can Profit From
“Frankenfoods” Gain Greater Acceptance as Food Prices Skyrocket
By Jason Simpkins Associate Editor For more than a decade, European policymakers have spurned genetically modified crops, but these so-called Frankenfoods are beginning to look more and more appetizing in the wake of food shortages and soaring prices. Only 21% of Europeans are willing to eat genetically engineered food, according to a survey by the […]
MBIA on the Hook for $7.4 Billion After Moody’s Downgrade
By Jennifer Yousfi Managing Editor After a recent credit-rating downgrade, MBIA Inc. (MBI) must come up with $2.9 billion in possible termination payments, as well as an additional $4.5 billion in collateral to stabilize guaranteed investment contracts (GICs). Many investment contracts have minimum collateral requirements that go into effect in the event of a credit-rating […]
Faced with Skyrocketing Iron Ore Costs, China’s Baosteel Rolls Two Rivals into a Joint Venture
By Mike Caggeso Associate Editor Baosteel Group Corp., China's largest steel producer, will pay $4.2 billion in cash for an 80% stake in a new Guangzhou-based steel mill that will merge two rivals, Shaoguan Iron & Steel Group and Guangzhou Iron & Steel Group. China is already the world's top steel consumer and producer, churning […]
Moody's Joins Other Rating Agencies in Downgrade of Ambac, MBIA
By Jennifer Yousfi Managing Editor Moody's Investors Service on Friday downgraded the debt rating of key bond insurers MBIA Inc. (MBI) and Ambac Financial Group Inc. (ABK), increasing expectations that more write-downs are in the offing for the U.S. financial-services sector, which has already written off nearly $400 billion in losses. Moody's Investors Service, subsidiary […]
All Eyes Will be on the Fed as Investors Look for Signals on Both Inflation and Interest Rates
By William Patalon IIIExecutive EditorMoney Morning/The Money Map Report The U.S. Federal Reserve will be in the spotlight again this week – and not because of those speaking engagements that seem to help whipsaw investor emotions. Tomorrow (Tuesday) and Wednesday, central bank Chairman Ben S. Bernanke will meet with his fellow policymakers on the interest-rate […]
Fed Policymakers Look to Juggle Inflation, Stagnation
By Jennifer Yousfi Managing Editor The U.S. Federal Reserve faces a tough challenge as it kicks off a two-day policymaking meeting tomorrow (Tuesday): It probably needs to start raising interest rates to prop up the U.S. dollar and offset a major escalation in inflationary pressures; but the economy needs low interest rates if it's to […]
A Pledge to Hedge: Saving $68 per Light Bulb and $100 on Water Immediately
Editor's Note: This is the second installment of an ongoing series. Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report Penny pinching is back in style. We decided on a couple of quick, inexpensive fixes that balance our desire to use less and save more. The moves have had an immediate impact. First, we installed […]
Mexico Joins the Global Battle Against Inflation with Surprise Rate Cut
By Jason SimpkinsAssociate Editor Mexico's central bank unexpectedly raised its benchmark interest rate by a quarter percentage point to 7.75% Friday, warning that the rate of inflation may exceed its previous forecast. "The recent inflation dynamic is worrying," Banco de Mexico's five-member board said in a statement. "The balance of risks for inflation has worsened." […]
Barclays Gets a $927 Million Jump Start as Japanese Banks Ramp Up Overseas Investment
By Jason SimpkinsAssociate Editor Barclays PLC (ADR: BCS), the United Kingdom's fourth-largest bank, may get a $927 million cash infusion from Japan's Sumitomo Mitsui Financial Group Inc. by the end of the month. The investment, which will be made through the group's Sumitomo Mitsui Banking Corp. unit, underscores an evolving trend among large Japanese banks […]