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They correctly point out that what matters for the company now worth $104 billion on paper is not what happens today, but rather how the firm conducts its affairs after the IPO is in the history books.
Warren Buffett, newspaper baron
Arguments that print media is dying got a kick in the teeth from the Oracle of Omaha. Buffett laid out $142 million in cash for Media General, which owns the Richmond Times Dispatch in Virginia, along with a spate of weeklies.
Some people are asking what the hell he’s thinking, but with HP poised to cut 25,000 jobs amid sliding demand for PCs, he may be onto something.
G-8 over Europe
Hopes that the G-8 might do something positive about the Eurozone situation sent stock futures up on North American exchanges.
Member nations, do however, concede the Euro charter doesn’t clearly enough outline the steps that must take place if a country decides to exit the pact. And world markets remain nervous after multiple downgrades of European banks by ratings agencies yesterday.
In exchange for raising the U.S. ceiling, GOP lawmakers are now demanding sweeping overhauls of the American tax code by 2013.
In other Republican antics, house lawmakers defended the Securities and Exchange Commission against criticism from Democrats that it lets corporate wrongdoers off the hook in exchange for fines. House Democrats, which normally jump to the aid of the Commission, say the fining structure allows companies to factor SEC fines as a line item cost for doing business in the U.S.
JP Morgan goes to Washington
With JP Morgan’s chief set to testify before the U.S. Senate, word emerges that the bank is holding $100 billion in higher risk bonds. U.S. lawmakers are also asking for more clarification on details of the Volcker rule.
Toronto passes Moody’s credit test
Ontario didn’t stand up to Moody’s evaluations, but the City of Toronto made the cut—Moody’s maintained Toronto’s Aa1 credit rating and confirmed the positive outlook for the city.
Budget chief Mike Del Grande says he wishes it had been raised since the 2012 budget was the first since amalgamation to decrease gross expenditures. But, he is pleased and looks forward to further improvement.
Enjoy your weekend! The Editors