Jim O’Neill: The view that “the West is in trouble” is wrong

“Jim O’Neill, chairman of Goldman Sachs Asset Management, said investors should shed their pessimism and stop hoarding cash amid prospects for a global stock rally that could start in China.

The view that “the West is in trouble” is wrong when nations including Germany, Sweden, Australia and Canada are performing strongly, O’Neill said in an interview with Bloomberg Television in Hong Kong, recorded yesterday and broadcast today. Investors should “stop worrying so much,” said O’Neill, known for coining the BRIC acronym for Brazil, Russia, India and China.

Global investors have tempered their optimism about the U.S. and world economies and plan to put more of their money in cash and less in commodities over the next six months, a quarterly survey of Bloomberg subscribers showed yesterday. The poll, conducted May 9-10, also found that investors’ enthusiasm for stocks is cooling…”

Full article

Comments »

“Meredith Whitney is dead wrong about the coming muni-bond meltdown, and Cumberland Advisors is happy to take the opposite bet, says David Kotok, chairman and chief investment officer of the money-management firm.

In a recent note to investors, Kotok says Whitney’s forecast of “hundreds of billions” in default by 2011 simply isn’t going to happen on the scale she predicts.

Whitney, a former Oppenhemier analyst who struck out on her own after successful early calls on the banking crisis, made the forecast on the CBS News program “60 Minutes” in December 2010.”

Read more: Kotok: Bet Against Whitney’s Muni Call

Full article

Comments »

This behavior happens in almost every industry….

“(Reuters) – At least 219 former officials at the Securities and Exchange Commission have left since 2006 to help clients with business before the agency, bringing fresh allegations of a “revolving door” that leaves the commission too cozy with the Wall Street firms it regulates.

According to a report to be released on Friday, between 2006 and 2010 there were 219 former SEC employees who filed letters with the agency indicating their intent to represent a client with business before the commission.

In all, those former officials advised firms on SEC business nearly 800 times, according to an advance copy of the report seen by Reuters.

The study by the nonpartisan Project on Government Oversight, which analyzed post-employment statements provided by the SEC after a Freedom of Information Act request, says the former officials joined a total of 131 firms to provide legal, lobbying, accounting and other advice to clients being investigated or regulated by the SEC.

Republican Senator Charles Grassley, a senior member of the Senate Finance Committee, said of the report: “The SEC’s revolving door seems to be more active than ever.”

Full article

Comments »

“The new U.S. consumer agency, which has yet to begin formal operations or write a rule, is already being squeezed between banks and advocacy groups over how to set up a complaint hotline.

Under the Dodd-Frank regulatory overhaul, the Consumer Financial Protection Bureau must establish a way for banking customers to submit reports about their problems with products and services. At issue is what happens after they’re filed.

Nonprofit groups such as Consumers Union and the Sunlight Foundation are pushing for an open system that would allow anyone to scan the raw submissions. Industry groups including the American Bankers Association argue that making them public could allow frivolous complaints to damage reputable brands.”

Full article

Comments »

Full article

Comments »

“LITTLE ROCK, Ark.–(BUSINESS WIRE)– Dillard’s, Inc. (NYSE:DDS – News) (the “Company” or “Dillard’s”) announced operating results for the thirteen weeks ended April 30, 2011. This release contains certain forward-looking statements. Please refer to the Company’s cautionary statements regarding forward-looking information included below under “Forward-Looking Information”.

Highlights of the thirteen weeks ended April 30, 2011 included:

Record earnings per share of $1.31 for the first quarter compared to $0.68 for the prior year first quarter. Net income was a record $76.7 million for the thirteen weeks ended April 30, 2011 compared to $48.8 million for the thirteen weeks ended May 1, 2010.

• Repurchase of approximately $268.7 million (6.4 million shares) of Class A Common Stock, completing the authorization under both the 2010 and 2011 share repurchase programs.
• A comparable store sales increase of 2%.
• Improved gross margin from retail operations of 130 basis points of sales compared to the prior year first quarter.
• Operating expense savings of $4.3 million (60 basis points of sales).”

Full report

Comments »

Upgrades

YHOO – Yahoo!: Needham discusses Alibaba/Alipay situation; views pullback as a buying opportunity

EXPE – Expedia upgraded to Buy from Neutral at Lazard – tgt $30

NTAP – NetApp upgraded to Buy from Hold at Canaccord Genuity

IAG – IAMGOLD target raised to $26 from $23 at RBC Capital Mkts

ANN – AnnTaylor upgraded to Outperform at Wedbush; tgt raised to $38

FDX – FedEx target raised to $120 from $116 at Stifel Nicolaus

IYH – U.S. Healthcare Sector upgraded to Overweight at JP Morgan

AIG – American Intl upgraded to Market Perform from Underperform at Wells Fargo

QCOR – Questcor Pharma target raised to $28 from $24 at Maxim Group

FL – Foot Locker target raised to $26 from $23 at Wedbush

AMGN – Amgen tgt raised to $70 from $65 at JPMorgan

MUR – Murphy Oil upgraded to Outperform from Market Perform at Raymond James

AET – Aetna upgraded to Buy from Hold at Citigroup – tgt raised to $56 from $47

CA – CA Tech target raised to $29 from $27 at Needham

AMTD – TD Ameritrade upgraded to Outperform from Market Perform at Wells Fargo

Downgrades

AMZN – Amazon.com initiated with a Neutral at Suntrust

GWW – W.W. Grainger upgraded to Hold from Sell at Citigroup

ONNN – ON Semiconductor initiated with Neutral at Susquehanna

HCN – Healthcare REIT sector downgraded to Market Weight from Overweight at Jefferies

Comments »

Gapping Up

ATEA +38.9%, SBLK +4.8%, TREE +34.3%, EK +7%, VELT +5%, PNSN +4.2%, ISS +3.5%,OXGN +2%, CY +1.9%, DMC +2.9%, PAY +2.1%, MDMD+2.1%, TPCG +1.3% 

Gapping Down

ESLR -13.5%, RMBS -2%, BODY -5%, ADAT -4.1%, BBOX -3.5%, JWN -2.1%, DRYS -1.7%,DIET -9.9%, STNG -7.6%, AMCF -6.7%, YHOO -6.1%, EPB -3.6%, UBS -1.8%, LXP -3.5%, AIS -5.6%, ELOY -5.5%,

Comments »

In Play

On the Wires

Comments »

“Greece has missed its deficit targets, and now its debt to GDP ratio is set to rise yet again, according to the European Commission (via Bloomberg).

Their on the ground research shows Greece having a 9.5% shortfall for their 2011 budget. That’s way higher than the IMF set target, which was 7.4%.

Further, that budget shortfall is set to add to the country’s already significant debt, and take debt to GDP to 158% this year. That’s a rise from 150%.

“Greece has apparently not fulfilled the conditions sufficiently of late. The issue of privatisations will be the most sensitive point here,” Ewald Nowotny of the ECB said.

Greece could lose its next aid check from the EU and IMF, it is concluded they are not following the rules of the program. That could lead to a default. A new Bloomberg poll released today says 85% of investors surveyed expect a Greek default.”

Full article

Comments »

Full report

Comments »

“Brandi Ramundo of West Chicago, Ill., rushed out to a Michaels arts-and-crafts store April 16 to cobble together corsages for her seven-year-old twins, who were going to a father-daughter dance.

“It turned out cute,” Ms. Ramundo says of the fake-flower crafts project. “But it wound up costing me 1,400 bucks.”

Ms. Ramundo is one of an unknown number of shoppers at Michaels stores in 20 states whose bank accounts were looted after they had used their bank debit cards at the retailer.

Thieves tampered with the retailer’s debit-card processing equipment at about 80 stores from Massachusetts to Washington, according to the chain’s corporate parent, Michaels Stores Inc. ”

Full article

Comments »

“systemically important financial institutions”

Full article

Comments »

“U.S. stock futures rose, signaling the Standard & Poor’s 500 Index may rise for the fourth time this week, led by a rebound in commodities as reports from Germany to Hong Kong boosted confidence in the global recovery.

Exxon Mobil Corp. (XOM) and ConocoPhillips advanced in German trade as crude oil climbed above $100 a barrel. Healthcare companies may rise after JPMorgan Chase & Co. upgraded the industry, citing takeover activity. SunPower Corp. (SPWRA) dropped in Germany after the company forecast earnings that fell short of analysts’ estimates.

S&P 500 futures expiring in June gained 0.1 percent to 1,349.2 at 12:10 p.m. in London. The benchmark gauge yesterday erased earlier losses as commodities rebounded with a weaker dollar. Dow Jones Industrial Average futures rose 0.1 percent to 12,687 today. Nasdaq-100 Index futures also rose 0.1 percent, to 2,409.”

Full article

Comments »

“Most European stocks rose as the region’s economy grew more than estimated and earnings at companies from Vivendi SA (VIV) to UniCredit SpA (UCG) topped forecasts. U.S. index futures and Asian shares advanced.

Vivendi climbed 2.3 percent as the owner of the world’s biggest music and video-game companies said first-quarter profit rose 29 percent. UniCredit, Italy’s largest bank, advanced 2.1 percent. European Aeronautic, Defence & Space Co. gained 4.7 percent as adjusted earnings rose.

The Stoxx Europe 600 Index increased less than 0.1 percent to 282.03 at 12:02 p.m. in London, with the gauge on course for its third weekly gain in four. Three stocks rose for every two that fell. The measure has rallied 7.6 percent from this year’s low on March 16 as companies including PSA Peugeot Citroen and Ericsson AB reported results that topped analysts’ estimates and the U.S. Federal Reserve maintained its pledge to keep interest rates low for an extended period.”

Full article

Comments »

“Asian stocks rose, led by markets in Hong Kong and Shanghai, as speculation mounted that China will limit interest-rate rises. Japanese shares sank amid disappointing earnings following the nation’s worst earthquake.

Industrial & Commercial Bank of China Ltd. led gains among lenders in Shanghai. Sino Land Co., a Hong Kong developer controlled by billionaire Robert Ng, rose 2 percent in Hong Kong after the government sold residential sites for more than analysts expected. Japan Steel Works Ltd. slid 4.9 percent after forecasting a drop in profit. Sumitomo Mitsui Financial Group Inc., Japan’s second-biggest bank by market value, fell 3.8 percent as the country’s chief cabinet secretary said lenders may have to waive some loans to Tokyo Electric Power Co.

The MSCI Asia Pacific Index rose 0.2 percent to 136.57 as of 6:29 p.m. in Tokyo, even as the index moved toward its second straight weekly drop. About the same number of stocks advanced as fell on the gauge, which yesterday dropped the most since markets slumped in the wake of Japan’s March 11 earthquake, as China announced it will raise banks’ reserve requirements.”

Asian markets rise

Nikkei down after TEPCO loans sour bank stocks

Comments »

“Corn rebounded on speculation that wet weather in the U.S. Midwest will cause farmers to abandon plans to seed the grain. Wheat and soybeans also rose.

About 40 percent of U.S. corn was seeded as of May 8, down from 80 percent at the same time a year earlier and a five-year average of 59 percent, Department of Agriculture data show. Wet weather has delayed corn planting in the Midwest and northern Plains and may flood as many as 3 million acres in Louisiana. Corn is up 84 percent in the past year.

“If we don’t get the corn planted, the majority of that is going to go into soybeans,” William Adams, a fund manager at Resilience AG in Zurich, said by phone. “It looks like we’re going to lose a lot more acres of corn.”

Full article

Comments »

LOL on this piece….

“Terrorism can be good for bunker builders. An apocalypse can be even better for business.

Danila Andreyev started building “panic rooms” three years ago, when fears of terrorist attacks and commercial disputes turning violent created demand in Russia. Now he’s selling “survival bunkers” for as much as $400,000 each to capitalize on angst over theories the world will end next year.

“I myself am not a believer in doomsday scenarios,” Andreyev, 31, whose Spetsgeoproekt company is completing 15 bunkers at hidden locations across Russia, said at his office in central Moscow. “But when you start hearing clients talking about the end of the world, it gets you thinking.”

Full article

Comments »

“Hong Kong raised forecasts for growth and inflation after the economy expanded 7.2 percent in the first quarter, the fastest pace in a year and more than any of the estimates in a survey of 17 economists.

The gain in gross domestic product from a year earlier, released by the government at a briefing today, compared with a revised 6.4 percent increase in the three months ended December 31. Analysts’ median estimate was for a 5.5 percent increase.”

Full article

Comments »

“The Baltic economies of Estonia and Lithuania will probably slow from first-quarter peaks as capacity constraints limit exports, their main growth engine, and demand from abroad wanes, analysts said.

Having been hit hard by the global economic crisis, Estonia and Lithuania notched the quickest growth rates in at least three years as austerity helped improve competitiveness, which fuelled exports and manufacturing. Their pace was the fastest among European Union nations that have reported first-quarter data. Latvia also outpaced most developed nations.

The pace of expansion may not be sustained because factories are approaching full production capacity at the local units of companies such as Ericsson AB and Elcoteq SE (ELQAV), said analysts including Neil Shearing at Capital Economics. The comparison with slower growth in the beginning of last year will also disappear, crimping future GDP data, they said.”

Full article

Comments »