Monday, January 26, 2009 - Posts

Monday, January 26, 2009 1:47 PM

Freddie Mac to ask for billions more in funds

Mortgage finance company Freddie Mac said Friday it will need an additional $30 billion to $35 billion in government aid as it copes with losses on loans the company backed during the U.S. housing bubble.

The company disclosed in a Securities and Exchange Commission filing late Friday that it expects its government regulator, the Federal Housing Finance Agency, to make the request from the Treasury Department.

It comes on top of the $13.8 billion the company received last year after it was seized by the government. Sibling company Fannie Mae has yet to request any such aid but has warned it may need to do so. [AP]

posted by isnaini (Comments Off)
Monday, January 26, 2009 1:46 PM

Harley to cut 1,100 jobs as 4Q profit falls

Harley-Davidson Inc. said Friday it will cut 1,100 jobs over two years, close some facilities and consolidate others as it grapples with a slowdown in motorcycle sales.

The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 percent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.

The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pa., plant and close its distribution facility in Franklin, Wis., whose duties will be handled by a third party. [AP]

posted by isnaini (Comments Off)
Monday, January 26, 2009 1:44 PM

Oil prices baffle traders; soar 6 pct to end week

The government reported by midweek that oil inventories had soared, suggesting a serious dent in demand; there were horrible housing and jobless numbers Thursday and to end the week there was talk that OPEC couldn't cut production fast enough. Over the same three days, oil prices jumped 11 percent.

Traders searched for logic in a market that seemed to defy it, and by Friday had largely given up.

Light, sweet crude for March delivery soared more than 6 percent Friday, or $2.80, to settle at $46.47 a barrel on the New York Mercantile Exchange. In the volatile hours between market open and close, prices swung as low as $41.40 and as high as $47.

posted by isnaini (Comments Off)