NEWS AT A GLANCE
Merrill books steep losses
Merrill Lynch added $2.9 billion in write-downs to its already-disclosed $5 billion in losses, for a net third-quarter loss of $2.3 billion. "This is a bloodbath for certain," said analyst William Fitzpatrick at Johnson Asset Management in Racine, Wisc. "It speaks very poorly to Merrill's risk management practices." (Reuters) The greater-than-expected loss weighed on stocks Wednesday morning. (MarketWatch) The $7.9 billion charge is the biggest loss in Merrill's 93-year history, and makes it the only one of the five biggest U.S. securities firms to book a loss from the recent credit crunch. (Bloomberg)
Amazon's wild ride
Shares in Amazon jumped 10 percent in regular trading, to an eight-year high of $100.82, as investors anticipated rosy earnings -- but then shed 10.8 percent after Amazon reported a rosier-than-forecast 313 percent jump in net profits. (AP in Yahoo! Finance) Analysts cited concerns about falling profit margins for the sell-off. (Reuters) Notably, Amazon sold a record 2.5 million copies of the latest Harry Potter book, but at deep discounts that left it no profit. "Expectations got ahead of themselves," said Scott Devitt of Stifel Nicolaus. Amazon's stock "has gone from $30 to $100 in a matter of 15 months, and at some point you crossed fair value," he added. (The New York Times, free registration required)
What cost, the Southern California fires?
The wildfires ravaging Southern California are shaping up as one of the most expensive fires in U.S. history. The Insurance Information Institute estimated that the insured damage will be at least $500 million. (BusinessWeek.com) And Moody's Economy put the total damage so far at close to $1 billion, including $45 million a day in lost work and $785 million for the 1,300 homes already destroyed. (MarketWatch) But economists say that with rebuilding outlays and insurance payments, the long-term effects won't be so bad. "In the odd nature of economic accounting, this will probably be a stimulus," said University of San Diego economist Alan Gin. (Los Angeles Times, free registration required)
Playing games, selling cars
When Nissan decided to introduce its GT-R sports coupe to U.S. drivers, it opted to do so through videogames. As soon as a new version of the GT-R is unveiled at the Tokyo Motor Show today, gamers will be able to download new games featuring the car. But the average videogame enthusiast might not be in the market for a car that retails in Japan for $70,000. Paul Sakalas, 27, was elated to learn that the GT-R he first fell in love with playing Sony's Gran Turismo on his PlayStation is coming to the U.S. "But when I heard how much it cost, my dreams were crushed on the rocks of reality," he said. (The Wall Street Journal)
BEST COLUMNS OF THE DAY
Is Google a monopoly?
Google "won its near-monopoly fair and square," says Steven Pearlstein in The Washington Post, just like "AT&T in the 1950s, IBM in the 1960s, Intel in the 1970s, and Microsoft in the 1980s." But does it stifle competition, as antitrust regulators charge? With its purchase of ad firm DoubleClick, "not particularly." But with its proposed investment in Facebook, yes. AT&T, IBM, and the others were supplanted by innovation. And Facebook may well be the "new idea will come along to supplant Google as Internet kingpin." The government needn't punish dominant players like Google, but it should "make sure the monopolist doesn't use its advantages to eliminate the emerging contenders."
Looking for a second chance
If things go badly in a new job, can you ask for your old job back? says Tara Weiss in Forbes.com. Maybe. Your best shot to "keep your dignity intact and convince your former manager to rehire you" is if you left in the right way: giving at least two weeks notice, finishing "as many projects as possible," being honest about why you're leaving, and "staying in touch." But "before you go begging," consider whether it's even a good idea. "After all, you left for a reason." If your job didn't match "your natural abilities and things you're interested in," you might be better off working to get your "dream job."
GOOD DAY FOR: Financial independence, as 61 percent of entrepreneurs in a Discover survey said they wouldn't give up the independence of running their own business for greater pay working for somebody else. And nearly 70 percent said they didn't want to grow their businesses much bigger. Only 19 percent said they started a business to earn more money. (Inc.com)
BAD DAY FOR: Anonymity, as Google is gathering even more information about you, buying detailed TV-watching statistics from Neilsen. The deal will help Google push deeper into TV ad sales. "This was a missing piece of puzzle for us," said Keval Desai, who heads Google's TV ads-placement division. (AP in BusinessWeek.com)
NOTED: Three large United Auto Workers locals in Indiana rejected the union's proposed labor contract with Chrysler last night, effectively throwing the fate of the pact to four plants in suburban Detroit. The voting ends Friday. (Bloomberg) The UAW last night authorized a strike against Navistar, three weeks after a contract between the truck and engine maker and 4,000 UAW workers expired. (Reuters)
Peter Weber contributed to this report.