NATHAN DENETTE
Welcome to the Morning Meeting, Streetwise's compilation of must-reads and news you can use to start the day.
Streetwise: Insurers and markets don't mix
It's Tuesday, which means there's a weekly Streetwise column in the print version of the Globe and Mail. This week, Streetwise looks at why insurers have trouble with capital markets, and why the market to hedge Manulife's troublesome equity exposure is getting more and more expensive.
RBC shops U.S. insurer
Royal Bank of Canada is looking for a buyer for its U.S. insurance arm, Bloomberg News reports. RBC bought the business for $850-millon a decade ago, and like much of the U.S. operations of the bank aside from capital markets, it appears to be no longer part of the core strategy for the bank. Bloomberg says that Goldman Sachs has been hired to seek a buyer.
Potash Corp. of Saskatchewan, the sequel
A reclusive Russian billionaire is trying to put a group of smaller potash producers together to rival Canada's big Potash Corp. of Saskatchewan. The Globe and Mail's David Ebner reports that Suleiman Kerimov wants to reassemble a company from potash producers that were split up as the Soviet Union crumbled.
Abitibi to tap lending market
Abitibi-Bowater is planning to borrow $1.35-billion as part of its recapitalization and emergence from bankruptcy. The current plan is to tap markets for a $750-million note offering and then back that up with a $600-million revolving credit line from Citigroup, Barclay's and JP Morgan. See the Canadian Press story in the Globe and Mail.
Warren Buffett shortens up
Billionaire Warren Buffett is holding more short-term bonds as he warns that inflation is a risk, Bloomberg News reports.
Skype, too much hype?
The Financial Times questions whether the Skype initial public offering will be the one to revive the U.S. IPO markets.
Early reaction to Skype's plan Monday from the blog world was that it's a good service, but maybe not a good buy. RBC will be hoping that Skype is the real deal, as it's the only Canadian bank with a share of the IPO syndicate.
Lehman's Blue Period
Fancy a Lehman Brothers memento to remind you of the week your portfolio had a near-death experience? Here's your chance.
Follow Streetwise on Twitter.