$TSLA Posts a Larger Than Expected Loss

“(Reuters) – Tesla Motors Inc reported a bigger quarterly loss on Monday as it ramped up production of its Model S sedan, and the electric carmaker maintained its 2012 revenue outlook.

Tesla said its third-quarter loss had widened to $110.8 million, or $1.05 per share, from $65.1 million, or 63 cents per share, a year earlier.

Excluding one-time items, Tesla reported a loss of 92 cents per share, compared with analysts’ expectations of a loss of 90 cents, according to Thomson Reuters I/B/E/S.

Revenue came to $50 million, up 16 percent from a year earlier and up 88 percent from the previous quarter. Analysts had expected $48.3 million.”

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“David and Michelle Haisley from Fort Wayne, Indiana, weren’t happy with the performance of their retirement funds, so they made another investment — a foreclosed home for $27,000.

Haisley, a heating and air-conditioning technician, said he worked on the house before it went into default and decided to make an offer when he saw it listed at about a third the price of surrounding homes. They’ve already found tenants for the house and David said they’ll buy another foreclosure if they can find the right deal.”

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“European and Asian leaders will this week discuss a stalled trade agenda between the world’s fastest and slowest-growing regions, as the debt crisis undermines expansion of commercial ties.

Europe’s economic woes may exacerbate protectionist tendencies that make it harder to expand trade with its biggest commerce partner at a time when the U.S. and Australia are forging new agreements, according to Fredrik Erixon, head of the European Centre for International Political Economy in Brussels. Apart from a trade deal with South Korea, the 27-member European Union has seen talks lag with China, Japan, India and Southeast Asian countries since 2007.”

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“HSBC Holdings Plc (HSBA) said it’s likely to face criminal charges from U.S. anti-money laundering probes and the cost of a settlement may “significantly” exceed the $1.5 billion the bank has set aside.

The bank made an additional $800 million provision in the third quarter to cover the costs of the investigation, adding to the $700 million it had already earmarked. HSBC also put aside more than $357 million in the period to compensate U.K. clients wrongly sold payment-protection insurance on loans as it posted an increase in pretax profit that missed analysts’ estimates.”

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Apparently $KO was hacked in March, but the company decided not to release any public statement….

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“China’s services industries rebounded from the slowest expansion in at least 19 months, adding to manufacturing gains that indicate the world’s second-biggest economy is recovering from a seven-quarter slowdown.

The purchasing managers’ index rose to 55.5 in October from 53.7 the previous month, theNational Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing on Nov. 3. A separate services index released today by HSBC Holdings Plc and Markit Economics in Beijing fell to 53.5 in October from 54.3.”

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“Australia’s services industry contracted in October for a ninth straight month, reinforcing the central bank’s decision last month to cut its benchmark interest rate, a private survey showed.

The performance of services index was 42.8 in October compared with 41.9 in September,Commonwealth Bank of Australia (CBA) and the Australian Industry Group said in Sydney today. Fifty is the dividing line between expansion and contraction.

The Reserve Bank of Australia last month ended a three- meeting pause in rate reductions as it seeks to revive demand in industries outside a resource boom that policy makers say may crest at a lower level than previously expected. The strength of mining investment has boosted the local currency, which in turn has hurt tourism, education and retail industries.”

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“Prudential Plc (PRU), the U.K.’s biggest insurer by market value, will buy the life insurance business of Thanachart Bank Pcl, which is part-owned by Canada’s Bank of Nova Scotia (BNS), for as much as 368 million pounds ($590 million).

Prudential will pay Bangkok-based Thanachart 358 million pounds in cash when the transaction is completed and a further 10 million pounds 12 months later, the London-based insurer said in a statement through the Singapore stock exchange. The transaction is subject to regulatory approval and is expected to close in the first quarter of 2013, the company said.”

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“From the U.S. to Germany and even Japan, where the bond market is twice the size of the economy, investors can’t get enough government securities even though rising debt loads are blamed for curbing global growth.

For the first time since the financial crisis in 2008, all 26 markets tracked by Bloomberg and the European Federation of Financial Analysts Societies are poised to generate positive returns on an annual basis. Gains this year range from Portugal’s 47 percent to Japan’s 1.78 percent.”

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“Denmark’s latest regional bank failure shows that even lenders that had reported growing profits can conceal risks big enough to shut them down.

Toender Bank A/S (TNDR), based in southwest Denmark close to the German border, was forced to declare bankruptcy after markets closed on Nov. 2, following an inspection by the Financial Supervisory Authority that revealed bad loans big enough to wipe out the lender’s equity. Sydbank A/S (SYDB), Denmark’s third-largest listed lender, will take over Toender Bank’s 18,000 customers and a balance sheet of 2.3 billion kroner ($396 million). The acquisition won’t include hybrid or supplementary capital.

Denmark’s burst housing bubble has claimed more than a dozen regional lenders since 2008 as continued declines in property values and a struggling farming industry trigger deeper impairments. About 3.2 percent of the nation’s roughly 105 banks are under “intensified supervision due to potential solvency problems,” FSA Director Ulrik Noedgaard said last month. Until last week, Toender Bank had appeared profitable.”

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The Euro is down 0.004 @ 1.277

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“Sharp Corp. (6753) may turn to the last resort of Japanese companies facing potential bankruptcy — the government.

With 200 billion yen ($2.5 billion) of convertible bonds maturing in 2013, Sharp may have to ask the state Enterprise Turnaround Initiative Corp. or Innovation Network Corp. ofJapan for money, said Fumiaki Sato, co-founder of Sangyo Sosei Advisory Inc., a turnaround advisory firm in Tokyo. Sharp has failed to win a planned 67 billion-yen equity investment from billionaire Terry Gou’s Foxconn Technology Group.

Sharp hemorrhaged 103 billion yen in cash from operations in the first half of the year as Japan’s electronics industry struggles with dwindling demand and competition fromSamsung Electronics Co. (005930) A bailout may follow the precedent set by the government rescue of Japan Airlines Corp. two years ago that wiped out shareholders while keeping planes in the air.

“Japan has no other option but to help companies that need a bailout, given the possible impact to the economy,” said Yuuki Sakurai, president of Fukoku Capital Management Inc. in Tokyo. “If Sharp fails, there will be a lot of job losses, including those at suppliers, and the impact of that can’t be ignored.”

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World Markets

Currencies

Commodities

USD Libor

Euribor

Yields for Italy, Spain, France,  and Germany …

[youtube://http://www.youtube.com/watch?v=p-eEtyygESA 450 300]

[youtube://http://www.youtube.com/watch?v=oUzpIHCu8BE 450 300]

HAHAHA

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“It is that time in the presidential cycle that gets everyone emotional and concerned with the future outlook of the United States. While everyone has their opinion on whom they think is best for America, I promised myself a long time ago to keep my thoughts to myself for two key reasons. ONE: only 50% of Americans will agree with me J, and TWO: I am Canadian so I do not experience what Americans go through on a daily basis.

My thinking is if Obama wins then”

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Lots to consider after elections are said and done. A big sigh of relief will be had shortly for certainty or expected certainty at least. The future is always subject to change of course, but investors may be able to stop thinking about long term issues and focus on micro fundamental issues.

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“Standard & Poor’s misled investors by giving its highest rating to derivative-linked notes that lost almost all their value amid the global credit freeze, an Australian judge ruled, in what plaintiffs say is the first decision of its kind.

The credit ratings company was “misleading and deceptive” in its rating of two structured debt issues in 2006, Federal Court Justice Jayne Jagot said in a summary of her ruling released today in Sydney. The Australian councils that brought the case are entitled to damages from S&P and two other defendants, ABN Amro Bank NV and Local Government Financial Services Pty., according to the ruling.

Twelve Australian townships, suing as a group, claimed they lost A$15 million ($15.5 million) of A$16 million they invested in so-called Rembrandt notes rated AAA by S&P. A 13th township sued separately after losing more than 90 percent of its A$1 million investment.

Securitization enabled by S&P and other ratings companies contributed to more than $2 trillion in losses and writedowns at the world’s largest financial institutions and the collapse of Lehman Brothers Holdings Inc. in 2008, causing credit markets to seize up and leading to a global recession. A report by the U.S. Senate’s Permanent Subcommittee on Investigations said that S&P, Moody’s Investors Service and Fitch Ratings helped trigger the crisis when they cut thousands of mortgage securities they rated AAA to junk status.

‘Major Blow’

The ruling in Sydney is a “major blow to the ratings agencies”

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