Money Daily Brief: Troubled Galleon sees redemptions soar(Read article summary)
Investors have redeemed $1.3 billion from troubled hedge firm Galleon.
Douglas C. Pizac/AP/File
â€¢Galleon Group woes: Employees began preparing resumes as investors moved to recoup $1.3 billion in assets from the $3.7 billion hedge fund, which is at the center of an insider-trading scandal. Raj Rajaratnam , the group's cofounder, went free after posting $100 million in bail. Institutional investors may have to pull out of the firm.
â€¢Earnings reports: DuPont's third-quarter profit rose a better-than-expected 11 percent, but the chemical giant's revenues fell. Pfizer, whose earnings climbed 26 percent, saw a similar phenomenon, while Caterpillar's earnings plunged 53 percent. The picture was far brighter at Apple, which surged past earnings expectations for the fiscal fourth quarter with a 47 percent rise in profit and 25 percent jump in revenue on computer and iPhone sales. But the tech bellwether expected its gross profit margin to slip more than 2 percent in the fiscal first quarter, which includes the holiday season.
â€¢Sale of Manpower: Swiss-based Adecco SA, the world's largest supplier of temporary workers, is set to buy MPS Group for $1.3 billion to expand services in the US, United Kingdom, and Canada. The prices represents a 24 percent premium. Companies like Adecco are expecting a surge in work as economies around the world begin to crawl back from the crisis.
â€¢Smooth sailing: The global shipping industry may have seen the worst of the downturn, analysts say. But while freight rates are rising to break-even levels, it could be years before shippers return to the kind of profitability they saw in better times. The slight resurgence in their stock prices is also fragile.
â€¢In my backyard: Toyota Motor Corp. launched its flagship Prius hybrid and two other Toyota-brand models in South Korea, muscling into a market dominated by local automakers. The Japanese manufacturer had previously offered only Lexus-brand models here. The Prius may prove especially successful thanks to South Korea's hefty tax benefits for drivers who buy green vehicles. South Korea's own Hyundai Motor Corp., a late-comer to the green-car market, launched its Elantra hybrid just this July. It is only sold domestically and uses liquid petroleum gas.
â€“ Ben Hancock is a Monitor contributor based in Seoul. For a look at US-backed mortgage guarantors, see Outlook for Fannie Mae, Freddie Mac still troubled a year later.