Archive for January, 2009

Student Loans and Stanford B-School Admissions (BusinessWeek Online)

Friday, January 23rd, 2009 | Finance News

Loans: Jan. 27, 2009 at 11 a.m. EST

Guest: Dan Thibeault, president and co-founder of Graduate Leverage

There has been lots of talk about student loans and the fate of aspiring MBAs, especially international students, who need them. If you're worrying about how you're going to pay for your graduate education, you don't want to miss this live chat event. On Tuesday, Jan. 27, at 11 a.m. EST, Dan Thibeault, president and co-founder of Graduate Leverage, a student lending organization launched by Harvard Business School students, will answer your questions about everything from deciding how much money you'll need to finding a co-signer.

Thibeault wrote the business plan for Graduate Leverage while at Harvard B-School, where he earned his MBA, and founded the company in 2003. He also has a BA in economics from Dartmouth College.

Stanford: Jan. 30, 2009 at 1 p.m. EST

Guest: Derrick Bolton, director of admissions at Stanford Graduate School of Business

Want to snag a spot at Stanford B-School? Then you'll want to attend this live chat event on Friday, Jan. 30 at 1 p.m. EST, when Derrick Bolton, director of admissions, will answer questions about everything from writing a great essay to fitting in on campus.

Bolton joined Stanford in 2001 after working for three years at investment bank Goldman Sachs. Before joining Goldman, Bolton spent two years studying at Stanford, graduating with his MBA, plus a master's in education in 1998. Before B-school, Bolton worked for consultants McKinsey and studied psychology and sociology at Southern Methodist University.

Your host for these events will be Francesca Di Meglio (FrancescaBW), the Business Schools community manager and reporter.

Hope to see you there!

If you can't attend a live event, you can send Francesca Di Meglio ( questions for the guest in advance, and she'll try to pose as many as she can. Please use the subject line "Two Chats." Or, you may simply read the transcripts that we post afterward.


EADS denies mulling collapse of A400M project (Reuters)

Friday, January 23rd, 2009 | Finance News

PARIS (Reuters) –
European aerospace group EADS (EAD.PA) on Friday denied a report that it was preparing for a possible collapse of the 20 billion euro ($25.91 billion) A400M military aircraft program as it tries to renegotiate late delivery penalties.

The Financial Times Deutschland reported potential losses due to delays had forced the Airbus parent company to question its role in Europe's biggest single arms development.

"According to FTD information, the mass of A400M problems is prompting a discussion at EADS over whether the project should be maintained," the newspaper said.

"A withdrawal -- which customers as well could demand -- threatens to reverse the transaction."

EADS denied any internal scenarios to escape the project.

"There is no discussion within EADS about a scenario to withdraw from the A400M program, contrary to what has been circulated in the press," the Airbus parent said in a statement.

EADS shares fell more than 4 percent to 12.35 euros.

EADS said this month the project would be delayed by at least three years and called for talks over contract terms.

Airbus blames engine makers led by Rolls Royce (RR.L) and Safran (SAF.PA) while the engine makers say it is Airbus that has botched the testing of the West's largest ever turbo-prop.

The FTD quoted the head of Germany's air force as saying deliveries to the Luftwaffe of the troop and cargo plane would be delayed for as much as four years to 2014.

"That is a disastrous development," he was reported saying.

(Reporting by Tim Hepher and Michael Shields, editing by Marcel Michelson)


Earnings and recession batter world stocks (Reuters)

Friday, January 23rd, 2009 | Finance News

LONDON (Reuters) –
The spread of economic gloom to company performance pulled equities sharply lower on Friday, driving European equities below last year's lows, while Britain's formal arrival in recession hit the pound again.

Britain said its fourth quarter gross domestic product shrank 1.5 percent. Sterling hit a 23-year low against the dollar below $1.36.

Earnings worries were to the fore. Japanese stocks ended the week at a two-month closing low, dragged lower by technology and entertainment giant Sony's (6758.T) forecast of a record $2.9 billion annual loss on sliding demand.

It followed heavy losses overnight on Wall Street, where Microsoft (MSFT.O) cautioned that it could no longer offer profit forecasts for the rest of the fiscal year after posting a quarterly profit that fell short of expectations.

In Europe, the FTSEurofirst 300 (.FTEU3) index was down around 1.4 percent, working on its 12th session of decline out of 13.

"Earnings have been as bad as expected," said Bernard McAlinden, investment strategist at NCB Stockbrokers. "The test is whether the markets have discounted that or not. But they seem to be taking it nervously."

Japan's Nikkei stock average (.N225) earlier lost 3.8 percent.

In a report on investment flows, State Street said its latest calculations showed cross-border equity flows running at one of the most risk-averse levels for a record 118 trading days.

"The one optimistic sign is that emerging market flows have rebounded." it said.


The mood of investor caution lifted currencies that currently benefit from risk aversion.

The dollar was up more than 1 percent against a basket of major currencies (.DXY), with the euro falling 1.2 percent to a six-week low. It was at $1.2828.

Britain's pound, which has fallen around 8 percent against the dollar this week, was at $1.3641, down 1.7 percent.

"It is very much a case of continued worry about the global economy," BNP Paribas currency strategist Ian Stannard said of currencies in general.

Demand for bonds were mixed.

Two-year yields were 4 basis points lower on the day at 1.396 percent while 10-year Bund yields were up 3 basis points at 3.133 percent, steepening the 2-10-year bond yield curve.

(Editing by Stephen Nisbet)