Wall Street Breakfast: Must-Know News

Must-Know News for Monday

• Asian markets pulled back sharply Monday on U.S. economic fears: Nikkei: -3.97%, Hang Seng: -4.25%, Shanghai: -7.2%.

  European indices also slipped in early trading Monday: FTSE: -1.47%, DAX: -1.66%, CAC: -2.2%.

  U.S. futures: DJIA: -0.63%, S&P 500: -0.75%, Nasdaq: -0.84%. Crude fell 1.2% to $89.67 on demand concerns in view of the economic slowdowns in the U.S. and Japan. Oil futures are down 10% from the record $100.09 a barrel reached on January 3.

• Countrywide CEO to forgo big pay package. Angelo Mozilo, chairman and CEO of Countrywide Financial (CFC), will forfeit $37.5 million of severance pay, fees and benefits that he was to have received upon retiring. Mozilo is expected to step down when Bank of America (BAC) completes its acquisition of the lender.
• Sallie Mae settles buyout suit. Sallie Mae (SLM) has settled its suit against J. C. Flowers & Company and other buyers who had withdrawn their offer to purchase the company for $25 billion. The suit has been dismissed and the merger agreement terminated.
• Qatar mulls stake in Credit Suisse. Investment funds affiliated with the Qatar Investment Authority are reported to be considering taking a 5%, $3 billion stake in Credit Suisse (CS).
• Kellwood gives in to hostile offer. The board of apparel manufacturer Kellwood Co. (KWD) has thrown in the towel and is advising shareholders to make up their own minds on Sun Capital Securities Group's hostile $21 per share tender offer, which represents a 23% premium to the shares' Friday close. Kellwood will drop plans for a $60 million debt tender offer.
• Hedge fund moves in on New York Times's board. Harbinger Capital Partners Funds has nominated four candidates to the board of The New York Times (NYT), in which it holds a 4.9% stake. Harbinger and partner Firebrand Partners sent a letter to the Times requesting a meeting with the board, which it says has "not been effective in inspiring the requisite bold action this media environment demands."
• Bayer beats rivals to Japanese market with cancer drug. Bayer AG's (BAYRY.PK) treatment for advanced kidney cancer, Nexavar, has been approved for use in Japan. The drug, which is already approved in the U.S. and Europe, is codeveloped by Onyx Pharmaceuticals (ONXX).
• Fortis might take €1 billion subprime hit. Belgian-Dutch bank Fortis (FORSY) said Sunday that 2007 profit could be reduced by €1 billion ($1.5 billion) due to subprime exposure. Shares fell 12.96% Friday on rumors of profit warnings, but opened strongly higher Monday on investor relief that the bank remains solvent.
• Analysts cut Q4 earnings projections. A Reuters survey indicated that Wall Street analysts have cut their Q4 earnings estimates for S&P 500 companies. They now see earnings growth falling 17.6% in the quarter, down from the 10.9% decline they forecast a week ago. Earnings in the financial sector are expected to show a 91% drop, but technology earnings are forecast to have grown 26%.
• Sony Ericsson lands content deals with 3 top labels. The Sony Ericsson JV (SNE), (ERIC) has arranged deals with ten music providers, including Sony BMG, Warner Music Group and EMI, for its online music store, which will launch in May. The venture's PlayNow service, which will rival Apple's (AAPL) iTunes and Nokia's (NOK) Ovi, will provide over five million music tracks in 30 countries by the end of 2008.
• Nokia to bid for Trolltech. Nokia (NOK) plans to offer 843 million Norwegian crowns ($153.3 million) for software firm Trolltech. 66.43% of Trolltech shareholders voted to accept the offer.
• Google eyeing operations in Malaysia: report
• AMD Graphics Card May Test Nvidia
• Washington Post Starts an Online Magazine for Blacks
• IAC Might Enlist Help In Splitting Off Units
• India's L&T Q3 net rises to 4.81 bln rupees on higher revenues

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