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Comments »Monthly Archives: November 2012
In Play and On the Wires
$T Signals the End of the Copper Wire Era
“AT&T Inc. T -3.45% is laying the groundwork to phase out its old-fashioned telephone service.
The telecom company said Wednesday it wants to eventually decommission the technology behind its decades-old, copper-line phone network that currently covers 76 million homes and businesses in 22 states.”
Comments »Oppenheimer: Apple’s Stock Is Ready To Jump Back To $620
Is Fox News Killing the Right ?
“For me there was no doubt about the high point of Wednesday morning’s election coverage. At about four o’clock I flicked over to Fox to see how the good folks there were managing their grief. I was greeted by what – even by Fox standards – was an amazing sight. Karl Rove had become embroiled in a heated debate with his own network about their decision to call Ohio and the Presidency for Barack Obama. It was too early, he said. There were still lots of votes to be counted. They had to be right, not first.
Not wishing to miss the opportunity for some fantastic television – even at their own expense – anchor Megan Kelly was dispatched to confront her network’s own decision desk. The startled analysts, who bore the excited but nervous demeanour of elves been visited by their Snow Queen, assured Kelly that the call had been correct, and Ohio had indeed been held by the President. Rove, grudgingly, was forced to back down.”
Comments »Windows 8 the Next Vista ?
“Nov. 8 (Bloomberg) — I’ve made a lot of computer blunders over the years. The biggest was taking a perfectly well- functioning Sony Vaio and upgrading it from Windows XP to Windows Vista, which left it so crash-prone as to be all but useless.
So please believe me when I offer this word of advice on installing Microsoft’s shiny new Windows 8 operating system:
Don’t.
Windows 8 is far from the disaster Vista was. But unless you have a very recent personal computer with a touch screen, there are few benefits — and some significant drawbacks in terms of learning curve and usability — to upgrading from Windows 7.”
Comments »Regulators Allow $JPM to Resume Buyback Program After London Whale Loss
“(Reuters) – JPMorgan Chase & Co said U.S. regulators have approved a plan for the bank to use its capital to buy back as much as $3 billion of its stock in the first quarter of 2013.
JPMorgan had suspended buybacks in May and submitted a new capital plan to the Federal Reservein August after containing its “London Whale” derivatives losses at about $6.2 billion.
The Federal Reserve told the bank on November 5 that it had approved the plan, JPMorgan said in a quarterly filing to the Securities and Exchange Commission on Thursday.
The losing derivatives positions were disclosed by JPMorgan on May 10, more than a month after reports surfaced in the credit markets that Bruno Iksil, a London-based trader for JPMorgan known as the London Whale, had made massive bets in credit markets.
The approved plan provides for JPMorgan to continue paying its current quarterly dividend oncommon stock, the filing said.”
Comments »$MCD Same Store Sales Fall for the First Time in 9 Years
“NEW YORK (AP) — McDonald’s Corp. says a key sales figure fell in October, marking the first monthly drop in nearly a decade for the world’s biggest hamburger chain.
The company, based in Oak Brook, Ill., says global sales at restaurants open at least a year fell 1.8 percent for the month. The last time the figure dropped was in 2003. The figure is a key metric because it strips out the impact of newly opened and closed locations.
The fast-food chain says the figure fell 2.2 percent in both the U.S. and Europe. In the region encompassing Asia, the Middle East and Africa, it dropped 2.4 percent.
After year of outperforming its rivals, McDonald’s has seen sales slow recently as the company faces intensifying competition and a persistently weak economy.”
Comments »Initial Claims: Prior363k, Market Expects 370k, Actual 355k
Trade Balance is a smaller deficit of $41.5 billion
Comments »Kohl’s Profit Rises, Expecting a Good Holiday Season
“(Reuters) – Kohl’s Corp reported a slightly higher third-quarter profit on Thursday, as sales perked up later in the period, and the department store operator forecast same-stores sales will rise during the current holiday quarter.
Kohl’s, which has 1,146 stores, expects holiday quarter earnings of $2.00 per share to $2.08 per share, compared with the $2.16 Wall Street analysts had been expecting, according to Thomson Reuters I/B/E/S.
The retailer, which competes most directly with Macy’s Inc and J.C. Penney Co Inc , forecast sales at stores open at least year would be up 3 percent to 4 percent in the quarter that includes the Christmas period, an improvement over the 1.1 percent pace in the third quarter.
Kohl’s posted a third-quarter profit of $215 million, or 91 cents per share, up slightly from $211 million, or 80 cents per share, a year earlier.
As previously reported, overall sales rose 2.6 percent to $4.49 billion.
(Reporting by Phil Wahba in New York; Editing by Gerald E. McCormick)”
Comments »Wendy’s Misses Estimates
“(Reuters) – Wendy’s Co , the second-largest U.S. hamburger chain, reported an adjusted quarterly profit that missed Wall Street’s view as labor and marketing costs rose.
The company reported a bigger net loss of $26.2 million, or 7 cents per share, for the third quarter compared with a net loss of $3.9 million, or 1 cent per share, a year earlier.
Excluding a pretax charge of about $50 million from early extinguishment of debt, Wendy’s reported adjusted earnings from continuing operations of 3 cents per share.
Revenue rose 4.1 percent to $636.3 million. Same-store sales at established Wendy’s North America company-operated restaurants rose 2.7 percent.
Analysts on average had expected a quarterly profit of 5 cents per share on revenue of $640.15 million, according to Thomson Reuters I/B/E/S.
Shares of the Dublin, Ohio-based chain closed at $4.26 on the Nasdaq on Wednesday. (Reporting byAditi Shrivastava in Bangalore and Lisa Baertlein in Los Angeles; Editing by Joyjeet Das)”
Comments »The Euro Remains Weak Against the Dollar
“The euro fell to a two-month low versus the dollar as the European Central Bank kept interest rates at a record low and after President Mario Draghi said yesterday the debt crisis was starting to hurt Germany.
The single currency declined against all except two of its 16 major counterparts after Market News International said the ECB was reluctant to start buying government bonds after a decline in borrowing costs. The yen rose as investors sought safer assets amid concern re-elected U.S. President Barack Obama will struggle to avert the so-called fiscal cliff. The pound rose against the euro as the Bank of England refrained from boosting its asset-purchase program.”
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European Markets Rise on Good Earnings, However Gains are Currently Being Pared
“European (SXXP) stocks advanced, rebounding from their biggest slide in two weeks, as companies from Swiss Re Ltd. to Hermes International (RMS) SCA posted results that exceeded analysts’ estimates. U.S. index futures also rose, while Asian shares slumped.
Swiss Re gained 2.1 percent after saying smaller losses from natural disasters helped net income surge in the third quarter. Hermes climbed 3.3 percent as sales rose because of increased demand in Asia. Siemens AG (SIE) jumped 3.7 percent after Europe’s largest engineering company announced that it plans to cut costs by 5 billion euros ($6.4 billion).”
Comments »The EU Joins the U.S. in Raising Tariffs on Chinese Solar Panels
“The European Union stepped up the threat of tariffs on solar panels from China by probing alleged subsidies to Chinese manufacturers already accused of unfair price undercutting in the biggest EU trade dispute of its kind.
The EU decision to open the inquiry into whether Chinese solar-panel exporters receive trade-distorting government aid comes amid a separate European investigation into allegations that they sold in the 27-nation bloc below cost, a practice known as dumping.”
Comments »Societe Generale Posts an 86% Drop in Profits
“Societe Generale SA (GLE), France’s second- largest bank, reported an 86 percent decline in third-quarter profit as losses on asset sales and a charge related to its own debt outweighed an investment-banking rebound.
Net income dropped to 85 million euros ($109 million) from 622 million euros a year earlier, the Paris-based company said in an e-mailed statement today. Earnings at the corporate and investment bank rose fourfold, lifting the bank’s shares by as much as 3.7 percent in Paris trading.”
Comments »China’s Central Bank Says Economy is Improving
“China’s central bank governor and statistics chief signaled October data to be published from tomorrow will show growth improving this quarter in the world’s second-largest economy.
Some indicators are rebounding and the economy is stabilizing, Zhou Xiaochuan, head of the People’s Bank of China, said today in Beijing at a briefing during the Communist Party’s 18th Congress. Ma Jiantang, head of the National Bureau of Statistics, said separately that people will be “more confident” about the fourth-quarter expansion.”
Comments »The Aussie Dollar Climbs as More Jobs Than Expected are Added to Economy
“Australian employers boosted payrolls more than economists forecast in October and theunemployment rate unexpectedly held as the nation weathered a global slowdown, sending the local currency higher.
The number of people employed rose by 10,700 after a 15,500 gain in September, the statistics bureau said in Sydney today. That compares with the median estimate for an increase of 500 last month in a Bloomberg News survey of 26 economists. The jobless rate was unchanged at 5.4 percent, compared with expectations for a rise to 5.5 percent.”
Comments »A Growth Rate of 6% Helps Indonesia to Keep Rates on Hold
“Indonesia kept its benchmark interest rate unchanged for a ninth straight meeting as economic growth exceeding 6 percent reduced the need for monetary stimulus.
Bank Indonesia Governor Darmin Nasution and his board held the reference rate at a record-low 5.75 percent, the central bank said in Jakarta today. The decision was predicted by all 16 economists surveyed by Bloomberg News.
Indonesia’s growth has outperformed every major Asian economy after China this year as the world’s fourth-most populous nation lures investment, helping gross domestic product expand 6.17 percent last quarter from a year earlier. The country has avoided adding to a February rate cut while neighbors from Thailand to the Philippines extended monetary easing to counter faltering global growth, as the region’s worst-performing currency this year boosted inflation pressure.”
Comments »The Greenback and Treasurys Continue to Rise
“U.S. Treasuries advanced for a second day and the dollar strengthened on speculation the so-called fiscal cliff and Federal Reserve bond purchases will boost demand for debt. European stocks gained, while Spanish bonds fell after a debt sale.
The yield on five-year Treasuries fell two basis points to 0.66 percent at 7:20 a.m. in New York. The dollar advanced against 11 of its 16 major peers. The Stoxx Europe 600 Index (SXXP) rose 0.4 percent. Standard & Poor’s 500 Index futures added 0.2 percent after yesterday decreasing 2.4 percent. The yield on Spain’s 10-year rose 13 basis points to 5.82 percent. Oil climbed 1 percent and the S&P GSCI gauge of 24 commodities advanced 0.5 percent.”
Comments »Black Gold Bounces After Largest Sell Off of the Year Seen Excessive
“Oil rebounded from the lowest level in almost four months in New York on speculation that the biggest decline this year was exaggerated.
West Texas Intermediate climbed as much as 1.4 percent, after its 14-day relative strength index plunged to 38.5 yesterday, a sign that prices may be oversold. Crude slumped 4.8 percent yesterday after U.S. stockpiles gained and fuel demand dropped, while President Barack Obama’s re-election stoked concern that the struggle to resolve deficit-reduction talks may harm the economy.
“Oil prices have experienced quite a rollercoaster ride in the past days, and today’s move looks like technical trading as traders re-balance their positions after the election,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark. “There’s a slight bias to the upside today that might mean room for a move up of $1 or so.”
Oil for December delivery rose as much as $1.16 to $85.60 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $85.51 at 12:45 p.m. London time. It lost $4.27 yesterday to $84.44, the lowest close since July 10. Prices are down 13 percent this year.
Brent for December settlement on the London-based ICE Futures Europe exchange gained as much as $1.11, or 1 percent, to $107.93 a barrel. It slid $4.25, or 3.8 percent to $106.82 yesterday. The benchmark grade for more than half the world’s oil was at a premium of $22.25 to New York crude. The spread widened to a one-week high of $22.38 yesterday.”
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