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Not likely: A deal for the BlackBerry maker would be hostile and pricey. Canadian national pride might get in the way, too

The plunge in Research In Motion's (RIMM) share price has fueled speculation that the maker of smartphones is vulnerable to a takeover—but buyers are unlikely to go BlackBerry-picking anytime soon. Shares of the Waterloo (Ont.) company got pummeled again on Oct. 20, dropping 5.21, or more than 8%, to 53.80. The catalyst was a series of bearish research reports from analysts.

It's not hard to play matchmaker for a company whose shares have lost more than 60% of their value since reaching an intraday record of 148.13 in June—only to plunge to a 17-month low of 50.22 in recent days. Peter Misek, an analyst at Canaccord Adams, was quoted in a recent Reuters report as suggesting Microsoft (MSFT) may be interested should the shares fall much further.

An accelerating rivalry with Apple (AAPL) and an economic slowdown that threatens to curb demand for BlackBerrys are contributing to talk of RIM's vulnerability. On Oct. 20, Bindu Benjamin, an analyst at broker First Global, downgraded RIM to "market perform with an under-perform bias" over concerns that heavy spending in the face of competition will eat into profit margins. The same day, Morgan Keegan analyst Tavis McCourt cut his 2009 revenue growth forecast to 84% from 92%, saying RIM faces a tougher economic environment. James Faucette of Pacific Crest Securities issued a note saying sales of the Pearl Flip, one of RIM's most recent phones, have been "tepid at best." Faucette also said sales of another phone, the Curve, have hit speed bumps in Canada and Britain, leaving results for the current quarter "at risk."

The Case for an Offer Can Be Made

The decline in RIM's share price gathered steam after the company said in September that margins would narrow (BusinessWeek.com, 9/26/08) in the coming months.

Further stock price weakness, the theory goes, might elicit a bid from Microsoft, particularly in the wake of its failed pursuit of Yahoo (BusinessWeek.com, 8/1/08). "If RIM's management would be willing to entertain the discussion, and if [RIM executives] are willing to partner up, I think Microsoft would take their call," Misek says, referring to RIM co-CEOs James Balsillie and Mike Lazaridis.

Microsoft has more to gain from RIM in the wireless arena than it did from Yahoo (YHOO) on the Web, Misek argues. "Microsoft has already lost the war over search as currently defined," he says. "It's now at risk for losing the next search war, in the mobile world." RIM's technology makes more efficient use of wireless data networks, and its software works well with Microsoft's enterprise e-mail tools, adding to its allure, Misek says.

When the dot-com and housing bubbles burst, it was easy to see what types of jobs would disappear. But these days as nervous lenders cower and credit contracts, virtually every industry is likely to be scathed in the widely predicted downturn starting this autumn. Nearly every business relies on credit to operate—just as they need customers to have spending power.

With lending trimmed, and companies and consumers tightening their belts (BusinessWeek, 10/9/08), jobs will be cut across broad swaths of the economy, from the tech sector to investment banking, and from manufacturing to soft drinks.

The four-week moving average of U.S. jobless claims hit its highest point in seven years, the Labor Dept. reported on Oct. 20. The average number of new jobless claims rose to 483,250 for the week ended Oct. 11, the highest since 2001. September's unemployment rate was unchanged at 6.1%, but economists generally predict the labor picture will deteriorate in coming months.

"Bottom Performers" Are Vulnerable

"This is an equal-opportunity recession," says Cathy Paige, a vice-president of Manpower (MAN), a temporary staffing firm that is experiencing softening demand from clients. "Everyone is feeling it."

In any industry, the workers most vulnerable to layoffs are "bottom performers," says Nancy Albertini, chairman of Albertini Group, an executive search firm based in Dallas. "Companies will say, 'We've been meaning to eliminate these,'" she says. After trimming poor performers, companies will cut in areas not considered essential to operations, such as marketing, communications, and human resources. After these categories, any position is fair game, Albertini says, depending on the industry. What started in the financial sector with the failures of Bear Stearnsand then Lehman Brothers, is spreading to other industries. Housing, sure, but technology is no longer immune, and consumer brands have begun culling employee ranks.

Silicon Valley has already made a wave of announcements. Yahoo (YHOO) is expected to announce job cuts this week, possibly on Oct. 21 when the company releases its quarterly earnings report. Yahoo eliminated 1,000 positions in January. Earlier this month, eBay (EBAY) announced it was laying off 10% of its 16,000 workers. Last month, Hewlett-Packard (HPQ) announced it would lay off 24,600 workers over the next three years, though it plans to hire another 12,300 as part of its restructuring since purchasing Electronic Data Systems (EDS) in August. Meanwhile, Google (GOOG) has been trimming its contractor workforce but expanding in other areas.

Eight years later, this time running as the Republican presidential nominee, the senator from Arizona is again criticizing Bush and his financial policies, as he renews his efforts to demonstrate that he would represent a departure from the current administration.

At virtually every campaign stop, McCain is reprising a line he used last Wednesday in his final debate with Sen. Barack Obama: "I am not George Bush." And in a television ad introduced last week, McCain looks into the camera and says, "The last eight years haven't worked very well, have they?"

As he struggles to pull his campaign out from beneath the shadow of a president whose approval ratings have reached historic lows, McCain is offering some of his toughest criticism of the Bush White House. In recent weeks, he has focused his message on the administration's handling of the nation's financial crisis, suggesting that the Treasury Department has been more interested in "bailing out the banks" than helping struggling homeowners avoid foreclosure.

"I am so disturbed that this administration has not done what we have to do, and that is to go out and buy up these bad mortgages," McCain told Jewish leaders in a conference call Sunday morning.

The new rhetoric has drawn roars of applause at some campaign stops and represents a tacit acknowledgment that McCain has not distanced himself sufficiently from the administration in his bid. One senior adviser said the campaign had to do something to counteract the Obama operation's decision to spend "tens of millions of dollars pushing" the idea that McCain is a virtual clone of Bush. "The majority of the swing voters don't believe it, but some do, and we have to convince them that we are different from Bush," said this adviser, who spoke on the condition of anonymity to discuss campaign strategy.

Bush is hardly the only problem for McCain as he struggles to close a gap with Obama. Voters perceive Obama as better prepared to handle the economic crisis, the GOP brand has been severely tarnished in recent years, and McCain is at a huge financial disadvantage.

But with the Republican president's approval ratings languishing, the perceived connection with him is a significant drag on the party's nominee. Nearly half of all voters in a new Washington Post-ABC News poll said McCain would mainly carry on Bush's policies, and among those who would consider a McCain presidency as a continuation of the current administration, 90 percent support Obama. And the prized independent voters who link McCain and Bush also overwhelmingly tilt toward the Democrat.

McCain has made progress in distancing himself from the president. Among independents, 54 percent now see the senator as offering a new direction, up from 44 percent before the third presidential debate, where he introduced his new language on Bush.

Among all likely voters, the percentage associating McCain with Bush is less than 50 percent for the first time, albeit barely, at 49 percent. Forty-eight percent said McCain would mainly continue to lead in Bush's footsteps.

A senior Republican close to the campaign said internal GOP polling underscores those findings.

"It's night and day," the source said. "You have somebody whose public approval is in the 20s. There's just not a 'there' there anymore in terms of residual support."

The Dow Jones industrial average rallied through the afternoon, rising 4.7 percent, or more than 413 points, to close over 9,000. The broader Standard & Poor's 500 rose 4.8 percent and the tech-heavy Nasdaq showed a gain of 3.4 percent.

The gains in U.S. markets followed a rebound overseas where government efforts to stabilize the banking sector continue. ING, the Dutch insurance and banking giant, surged 15 percent in morning trading after reports it would receive a $13 billion cash injection from its government. It closed up 21.7 percent. News reports also suggested that the International Monetary Fund is planning a $6 billion bailout of Iceland.

London's FTSE closed up 5.4, the Paris CAC rose 3.6 while the Dax in Germany gained 1 percent. Japan's Nikkei was up 3.6 percent.

U.S. governments efforts to stem the financial crisis have focused on unfreezing the credit markets and encouraging banks to lend to one another, other businesses and consumers. Those markets appear to be making small steps toward loosening.

The rate at which banks lend to one another -- the London interbank offered rate, or Libor -- eased slightly today, down to 4 percent from 4.4 percent on a three-month loan. But it is still much higher than the 1.5 percent bank lending rate set by the Federal Reserve. In normal times, the two rates would be closer to each other.

Speaking before the House Budget Committee about the financial crisis, Bernanke said a stimulus package may be appropriate since the economy is likely to be weak for a while. Any such program should be designed to have immediate impact and promote access to credit, he said.

"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke said.

Democrats, including House Speaker Nancy Pelosi, have touted the need for a second economic stimulus package, but it has received a cool reception from the Bush administration.

Economists are also watching earnings reports for evidence of how the financial crisis has already impacted corporate balance sheets and the outlook for the rest of the year. Two toy giants reported earnings today: Hasbro beat expectations today, while Mattel fell short. In statements, executives from both companies said they were optimistic about the holiday shopping season.
In light of the recent global economic environment, our business performed well in the quarter," Robert A. Eckert, Mattel's chairman and chief executive officer, said in a statement. "The all-important holiday season, however, is ahead of us."

Mattel and Hasbro closed down 2 percent and 4.2 percent, respectively.

Meanwhile, oil prices continued their rebound today. After a three-month slide, crude oil prices were up 2 percent, or $1.69, to $73 a barrel. Prices have been dragged down by expectations that the financial crisis would dampen demand. But the Organization of Petroleum Exporting Countries, or OPEC, is expected to announce this week it would cut oil production.

The rebound has helped shares of energy companies. Exxon Mobil closed up 10.2 percent, Conoco Phillips up 9.9 percent, and Chevron up 11.6 percent.

LONDON, England (CNN) -- Space travel, security threats and increasing passenger numbers are forcing major changes in the way airports are designed.

Elegant space: the interior of the proposed Virgin Galactic spaceport in New Mexico

more photos »

In fact, when discussing the future of the airport it is now appropriate to consider both conventional air travel hubs we are familiar with, as well as the imminent 'spaceports'.

The rush of interest in setting up 'space tourism' companies has seen proposed spaceport projects in Dubai in the United Arab Emirates, and California, Oklahoma, New Mexico, Florida, Virginia, Alaska and Wisconsin in the United States. Russia, Australia, Sweden and Portugal have also been rumored as potential spaceport locations.

Meanwhile, the air travel industry is continuing to expand operations despite the challenges facing some airlines.

And there are some radical new ideas being developed for future air and spaceports.

The adventurous views of Dave Evans, chief technologist at business solutions company Cisco Systems, highlight the types of changes we could soon see in airports and indeed the new features we may witness in spaceports.

Speaking at a FAA/NASA/Industry Airport Planning Workshop in 2006, Evans suggested that pilots of the future could fly without hands and from the comfort of their own home (using brain-machine interfaces, in which the human brain actually exchanges electronic signals with a computer).

He also said future airports would have virtual intelligence personnel to perform the jobs of many airport workers; and that people would be able to check-in remotely using a cell phone embedded with a RFID (radio frequency identification) chip.

But what will these new airports and spaceports look like?

Graeme Johns, who is an architect at British airport design company, The Design Solution, believes airports of the future will continue to expand, with bigger security and commercial areas.

Johns, who is involved in projects in London (the new Heathrow T2 terminal), Delhi, Mumbai, Doha, Abu Dhabi and Oman, said many new airports were being more adventurous with designs.

"I think there is definitely a move towards more avant-garde designs. People are trying to do things more site-specific rather than keeping to the same old formula.

"Definitely in the Middle East they throw everything at it, also in the Far East there are some large developments. They are all vying for transit passages," he said.

Johns said one of the biggest challenges was balancing commercial space with operational space.

"There's lots of pressure to make larger security areas ... but a big thing for us is trying to move up the commercial side of airports."

Future airports would likely include a better range of shops, he said.

"We are definitely looking at broadening the offering of shops and bringing in things that haven't traditionally been in airports," John said.

If all of this isn't exciting enough for you -- then of course there are spaceports.

Internationally renowned design company Foster and Partners won a competition to build Virgin Galactic's spaceport in New Mexico.

Company founder Lord Norman Foster said the project was one of the most exciting and futuristic he had been involved in

"This technically complex building will not only provide a dramatic experience for the astronauts and visitors, but will set an ecologically sound model for future spaceport facilities."

And what will this magnificent new structure include?

A tunneled entrance, a 'super-hangar' for the space-craft, and retaining walls that form an exhibition documenting the history of space exploration alongside the story of the region, are just some of the features.

So whether or not you have the money to make the space flight, Virgin Galactic's spaceport is going to be a place well worth visiting.

NEW YORK (CNNMoney.com) -- Stocks surged Monday, pushing the Dow back above the 9,000 level, as investors welcomed talk of a second economic stimulus plan and an improvement in key lending rates.

The Dow Jones industrial average (INDU) added 413 points, or 4.7% according to early tallies. The Standard & Poor's 500 (SPX) index gained 4.8%. The Nasdaq composite (COMP) added 3.4%.

After the close, American Express (AXP, Fortune 500) reported quarterly earnings from continuing operations of 74 cents per share, topping forecasts of 59 cents and down from 94 cents a year earlier. The company reported revenue of $7.2 billion versus forecasts for $7.31 billion.

Investors cheered comments from Federal Reserve Chairman Ben Bernanke that suggested a second economic stimulus package could be up for discussion. Additionally, comments from Treasury Secretary Henry Paulson and an improvement in lending rates added heft to bets that the credit market freeze is starting to thaw.

But the volatility of recent weeks isn't over, analysts said. Monday's gains reflected the need for traders to take a break from last week's wild swings, if nothing else, said Dean Barber, president at Barber Financial Group.

He said that the huge Dow swings last week of sometimes 1,000 or more points in a single session - between the highs and the lows - have really worn people out.

"I think there's a sense that the selling has gotten overdone, so you're seeing an advance today," Barber said.

"But people shouldn't think that means that we're moving up from here on out," he said. "I think we're still in for a rough ride going forward."

In testimony before the House Budget Committee, Bernanke noted that "with the economy likely to be weak for several quarters and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate."

The Bush administration said it was open to the idea. Congressional Democrats have previously said a second stimulus package is needed.

Shortly after Bernanke's speech, Secretary Treasury Henry Paulson gave a statement that a "broad group of banks" is interested in participating in the government's plan to invest $250 billion directly into lending institutions. Paulson also reiterated that the investments should eventually earn a good return for taxpayers.

These announcements helped propel Wall Street. But on a broader level, stocks were up because investors were starting to express optimism, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams.

He said investors were encouraged by a weekend cover story from financial weekly Barron's that suggested that the recession won't drag on as long as feared. However, the main factor restoring confidence was an improvement in lending rates over the past week, he said.

"The credit market is the most important thing right now," he said. "We need to see the banks lending to each other again."

He added that the recent drop in Libor, a key bank lending rate, on both an overnight and three-month level, was critical: "We're seeing that the government's efforts are starting to work," Rovelli said.

The morning brought an improved report on the economy as well. The September index of leading economic indicators (LEI) rose 0.3% after falling a revised 0.9% in the previous month. Economists surveyed by Briefing.com thought LEI would fall 0.1%. (Full story)

Stocks slipped Friday at the end of a volatile week as recession fears were countered by Google's earnings and bullish comments from influential billionaire Warren Buffett.

But Wall Street managed to post gains for the week, which included the Dow's biggest one-day point gain ever and the second-biggest point loss ever. For the week, the Dow and S&P 500 both added 4.7% and the Nasdaq added 3.6%.

Credit market: Lending rates improved Monday, building on last week's recovery, as the global initiatives undertaken continued to have an impact.

The South Korean and Dutch governments have now joined the list of nations trying to stem the global financial crisis by making billions in capital available to banks. Several key lending measures reacted, with shorter-term

Libor, the overnight bank-to-bank lending rate, fell to 1.51% from 1.67% late Friday, according to Bloomberg.com, a more than four-year low. The three-month Libor, what banks charge each other to borrow for three months, fell to 4.06% from 4.42% Friday.

Another indicator, the Libor-OIS spread, a measure of cash scarcity, fell to 2.93% from 3.28% Friday.

The TED spread, which is the difference between what banks pay to borrow from each other for three months and what the Treasury pays, narrowed to 2.97% from 3.63% Friday. The spread hit a record 4.65% earlier this month. The wider the spread, the more reluctant banks are to lend to each other.

Treasury prices rallied, lowering the yield on the 10-year note to 3.85% from 3.92% late Friday. Treasury prices and yields move in opposite directions.

The yield on the 3-month Treasury bill, seen as the safest place to put money in the short term, rose to 1.09% from 0.80% late Friday as investors began to pull money out of the safer investment and put it back in stocks. Last month, the yield on the 3-month bill skidded to a 68-year low around 0%.

Company news: AIG (AIG, Fortune 500) said it will start selling off pieces of its business by the end of the year. The troubled insurer also said it expects to be able to repay the $85 billion bridge loan it got from the government last month after it nearly collapsed. AIG shares gained 6%. (Full story)

Ericsson (ERICY) reported weaker profit and higher revenue versus a year earlier, both of which topped estimates. Shares of the telecom gear maker rallied 15%.

Halliburton (HAL, Fortune 500) said it swung to a net loss in the third quartet on debt charges and the impact of a tough hurricane season. However without one-time items, the oilfield services provider reported a profit that was higher than what analysts were expecting. The stock gained 8% and gave a lift to other oil services firms.

Yahoo (YHOO, Fortune 500) slipped after the Wall Street Journal said the company could announce layoffs and other cost-cutting measures Tuesday when it releases quarterly results.

Other markets: U.S. light crude oil for November delivery rose $2.40 to $74.25 a barrel on the New York Mercantile Exchange after hitting a 13-month low last week.

Bets that demand is slowing have sent oil prices lower since crude hit an all-time high of $147.27 a barrel on July 11. So far, instead of providing relief to investors, the decline has been seen as another indication of the global economic slowdown.

Gasoline prices fell another 3.1 cents overnight, to a national average of $2.923 a gallon, according to a survey of credit card activity by motorist group AAA. It was the 33rd consecutive day that prices have decreased - in the past month alone, they're down more than 93 cents a gallon.

COMEX gold for December delivery rose $2.30 to settle at $790 an ounce

Software provider TowerCare Technologies' Donna Myers.

David

To hear what angel investors across the country say they are looking to invest in now, flip through this slide show.

It was almost like the end of a marriage for broker Lori Van Dusen. After 22 years at Citigroup (C) managing client money, she decided it was time to leave.

From her Rochester (N.Y.) office, Van Dusen manages money for high-net-worth families and institutions, with her average client account worth around $40 million. Brokers like Van Dusen switch firms all the time. But her reasons for leaving are certainly not typical of many brokers. Van Dusen already had a degree of autonomy that's rare in the brokerage industry. However, the approval process for a new investment was long and arduous and Van Dusen believed it was in the best interest of her clients to find a firm than catered to the needs of high-net-worth investors.

So after a year and a half of looking at options with her partner, George Dunn, she decided to join Convergent Wealth Advisors, which had around $9 billion in assets under management before the merger. Together, Dunn and Van Dusen oversee $7 billion in client assets. &qout;We had a business inside a business," Van Dusen says. "But we have a sophisticated client base and we needed an infrastructure designed for our clients."

Billions in Asset Outflow

In the industry, Van Dusen is known as a breakaway broker. For many years now, many brokers have left their wirehouse homes to become independent. Amid the current turmoil on Wall Street, that outflow has increased from a steady stream to a rush. It's difficult to quantify exact numbers—no one can say exactly how many brokers have left in the past year. But assets transferred from these brokers to independent brokerages like Charles Schwab (SCHW), Fidelity Investments, and TD Ameritrade (AMTD) have increased tremendously.

In the first half of 2008, Fidelity gained 55 breakaway brokers and $7 billion in assets. Schwab Institutional, a division of Charles Schwab, added $9.4 billion in net new assets from newly independent advisers during the first half of 2008, up 300% from the same period last year and outpacing 2007's total $9.2 billion. "If you look at the 5,000 advisors associated with Schwab, that little ragtag army has outgained the entire Wall Street combined in the last decade," says Timothy Welsh, president of Nexus Strategy, a firm that assists brokers in going independent.

Wall Street should be worried. The departing advisers are not the B-team. Rather, many are like Van Dusen and have been at their firms for years. They're older—60% leave during their 40s and 50s, according to information from Discovery Database, which tracks adviser movement. They're also established—83% of brokers considering leaving have assets of $10 million or more under management and 33% have more than $100 million, according to a survey by the Aite Group, a Boston-based consulting firm. "The advisers who are leaving are the ones that the firms would like to retain," says Aite Group analyst Alois Pirker.

Unlocking the Golden Handcuffs

Why the exodus? For one, there are fewer reasons to stay. Firms like Schwab and Fidelity now specialize in setting up an adviser's infrastructure, everything from clearing trades to financial software, which helps make for a seamless transition. Furthermore, with the stock prices of Wall Street firms decimated, the value of the shares that provided additional compensation and gave advisers a stake in the company's future have plummeted. The once "golden handcuffs" are now aluminum foil.