News Corp Files With SEC to Split the Company

 

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“(Reuters) – Rupert Murdoch’s News Corp formally applied to the U.S. Securities and Exchange Commission to separate its businesses into two independent, publicly traded companies.

News Corp said in June that it would separate its publishing and entertainment assets after shareholders pressed it to get rid of its troubled newspaper business.

A phone hacking scandal hit the company’s British newspapers earlier this year, forcing it to drop its proposed purchase of pay-TV group BSkyB.

The filing starts a process of providing details about the two new companies and the manner in which they will be separated, News Corp said in a statement.”

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“Brazil boosted gold reserves for a third month in November to double the country’s holdings since August as central banks from Russia to Belarus and South Korea add the metal to diversify their assets.

Brazilian holdings expanded 14.7 metric tons in November to 67.2 tons, the most since November 2000, according to data on the International Monetary Fund’s website. The country bought 17.2 tons in October after adding 1.7 tons in September, the first increase since 2008. Russia’s holdings increased 2.9 tons last month and Belarus’s reserves expanded 1.4 tons, the data show. Turkey pared holdings 5.9 tons and Mexico sold 0.1 ton.

Central banks have been expanding reserves as the metal heads for a 12th annual gain and investors hold a record amount in bullion-backed exchange-traded products. Nations bought 373.9 tons in the first nine months of the year and full-year additions will probably be at the bottom end of a range from 450 to 500 tons, the London-based World Gold Council estimates.

“Central banks, particularly in the emerging economies, are looking to increase the proportion of gold in their reserve assets,” Alexandra Knight, an analyst at National Australia Bank Ltd., said from Melbourne. “That will drive prices of gold because they can be quite significant purchases.”

Gold for immediate delivery traded at $1,647.41 an ounce at 4:09 p.m. in Singapore, up 5.4 percent this year. Still, the metal slumped to $1,635.70 yesterday, the cheapest since Aug. 22, as data showed the U.S. economy is improving…”

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“The yen and the dollar strengthened as investors sought the perceived safety of the currencies on concern U.S. budget talks will fail to avert spending cuts that threaten to push the economy into a recession.

The euro pared a weekly advance versus the greenback after House Republican leaders canceled a scheduled vote on Speaker John Boehner’s plan to allow higher tax rates for annual incomes above $1 million. The New Zealand dollar led declines in higher- yielding currencies as a House leadership announcement said members and senators won’t vote on the end-of-year budget issues until after Christmas, giving them less than a week to reach agreement to avert tax increases and spending cuts…”

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“The proposal by a Bank of Japan (8301) board member to scrap interest paid on lenders’ deposits raises the prospect of a flood of cash into a bond market where yields are near a nine-year low.

While Koji Ishida’s plan to abolish the 0.1 percent payment was rejected by a majority vote when a two-day meeting ended yesterday, incoming prime minister Shinzo Abe has called for unlimited easing until 2 percent inflation is achieved. The 10- year note yield slid for a second day to 0.765 percent today, third only to Switzerland and Hong Kong among the world’s lowest rates, as the BOJ expanded its asset-purchase program and held its separate overnight interbank lending rate at between zero and 0.1 percent….”

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“Australia’s dollar touched the lowest level in more than two weeks after U.S. lawmakers scrapped a budget vote, rekindling concern the so-called fiscal cliff will drag down the world’s biggest economy.

Australia’s currency headed for weekly declines as House Republican leaders canceled a planned vote yesterday on a measure that would allow higher tax rates on annual income above $1 million, saying it didn’t have enough support to pass. The Australian and New Zealand dollars dropped against the yen as Asian stocks retreated.

“The fiscal-cliff negotiations are clearly a key focus for markets,” said Kymberly Martin, a markets strategist at Bank of New Zealand Ltd. in Wellington. As the uncertainty drags on “it has the potential to impact on risk appetite, and generally the Aussie and the kiwi perform worse in a more risk-averse environment.”

The Australian dollar fell 0.3 percent to $1.0453 as of 4:57 p.m. in Sydney from yesterday, after earlier touching $1.0438, the lowest since Dec. 4. The currency is headed for a 1.1 percent weekly loss, the biggest since the five days ended Oct. 5. The so-called Aussie dropped 0.7 percent to 87.82 yen. It touched 89.13 yen on Dec. 17, the highest level since May 2011.

The New Zealand dollar reached 83 U.S. cents, the weakest since Dec. 10, before trading at 83.04, 0.4 percent below yesterday’s close. It’s set for a 1.9 percent drop this week. The so-called kiwi lost 0.9 percent to 69.78 yen, poised for a 1.3 percent five-day decline. The currency reached 71.51 on Dec. 17, the highest since Oct. 2008…”

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“Oil declined the most in more than two weeks because of concern that U.S. lawmakers may fail to avert spending cuts and tax increases that threaten the economy of the world’s biggest crude consumer.

West Texas Intermediate dropped as much as 1.6 percent, paring a second weekly gain, after House Speaker John Boehner scrapped a plan to allow higher tax rates on annual income above $1 million, throwing talks on budget issues known as the fiscal cliff into turmoil. Oil rose a fifth day yesterday, the longest rally since September, after government data showed the U.S. economy grew at a 3.1 percent annual rate in the third quarter, higher than a previous estimate of 2.7 percent.

“We are seeing a negative reaction to Republicans rejecting the latest proposal on tax hikes,”Andrey Kryuchenkov, a commodities analyst at VTB Capital in London, said in an e-mail. “It could have a U.S. demand impact.”

WTI for February delivery fell as much as $1.45 to $88.68 a barrel in electronic trading on theNew York Mercantile Exchange, the biggest drop since Dec. 6, and was at $88.98 at 11:25 a.m. London time. Prices are up 2.6 percent this week. The volume for all West Texas Intermediate futures today was about 4 percent higher than the 100-day average.

Brent for February settlement on the London-based ICE Futures Europe exchange slid as much as $1.05, or 1 percent, to $109.15 a barrel. The European benchmark crude was at a $20.58 premium to New York-traded WTI, from $20.07 yesterday. The volume traded for all Brent futures today was about 28 percent lower than the 100-day average….”

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“Germany’s 10-year bunds rose for a second day as concern that U.S. policy makers will fail to avert a series of tax increases and spending cuts that may trigger a recession fueled demand for the safest fixed-income assets.

Benchmark 10-year bonds pared a weekly decline as U.S. House Republican leaders canceled a scheduled vote on Speaker John Boehner’s plan to allow higher tax rates for annual incomes above $1 million, throwing budget negotiations deeper into turmoil. Treasuries rose, while Italian 10-year securities dropped for second day.

“People are concerned again about the fiscal cliff,” said Ralf Umlauf, a research analyst at Landesbank Hessen-Thueringen in Frankfurt. “We see no signs of a solution and that is providing some support for bunds.”

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“Stocks fell around the world, Treasuries gained and the yen strengthened against all its major peers after House Republican leaders scrapped a plan to allow higher taxes as budget talks stalled. Commodities declined.

The MSCI All-Country World Index dropped 0.4 percent at 11:43 a.m. in London. Standard Poor’s 500 Index futures slumped 1.3 percent, after plunging as much as 3.4 percent. The Stoxx Europe 600 Index slid 0.6 percent, falling from a 19-month high. The yield on 10-year Treasuries decreased three basis points to 1.77 percent. The yen climbed 0.3 percent, while the euro weakened 0.3 percent. The S&P GSCI gauge of 24 commodities lost 0.4 percent and oil in New York falling 1.1 percent….”

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World Markets

Currencies

Commodities

USD Libor

Euribor

Yields for Italy, Spain, France,  and Germany …

 

 

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“The first major snowstorm of the season began its slow eastward march across the Midwest early Thursday, leaving at least three people dead, creating treacherous driving conditions and threatening to disrupt some of the nation’s busiest airports ahead of the holiday weekend.

Forecasters warned that heavy snow coupled with strong winds could create blizzard conditions from Kansas to Wisconsin — and guaranteed a white Christmas in some places — after the storm blanketed the Rocky Mountains earlier in the week.”

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[youtube://http://www.youtube.com/watch?v=6lH4fGy-mVU 450 300]

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“When the re-election of President Obama was official, I was very interested to see what would happen to the trajectory of foreign military interventions — especially the use of unmanned Predator drones. We didn’t have to wait long, however; within hours of being reelected, Obama celebrated with strikes in Yemen. As unaccountable, lawless, and dangerous as U.S. use of drone warfare has been under the Obama administration, new developments reveal that it may actually be getting worse.

NYU student Josh Begley has been tweetingevery U.S. drone strike since President Bush’s first bombing in Yemen back in 2002, and his Twitter feed highlights an incredibly disturbing tactic. The U.S. is employing a “double-tap” method in its use of drones, which means the bombing of a target multiple times in a very short period of time.

These “double-tap” attacks end up hitting “first responders” to the rubble and ashes that are left over after the initial strike, and Begley’s tweets reveal that the U.S. has been intentionally targeting funerals and civilian rescuers.

While these tactics, when discussed at all (Obama’s drone program is shrouded in an intense level of secrecy), are justified under the rubric of “national security,” even the Department of Homeland Security and the FBI have classified “double-taps” as staples of terrorists, not the repertoire of supposed constitutional republics.

So while the “double-tap” method may please the likes of Hamas and the abortion clinic bomberEric Rudolph, these attacks, even by the most broad definitions of international law, are blatant war crimes….”

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“The Founding Fathers understood that the right to keep and bear arms was essential to the preservation of liberty. The British Empire understood it too, which is why it sought to quell the American Revolution by dispatching an army to seize the gunpowder stores controlled by the rebellious colonial militias at Lexington and Concord. The rest, as they say, is history.”

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“The very weak protections for Americans that were added to the National Defense Authorization Act for 2013 via an amendment that was introduced by Sens. Dianne Feinstein and Mike Lee, and supported by Sen Rand Paul, has been stripped by the NDAA conference committee. Even those weak protections are now gone. Welcome to the United Soviet States of America.

Today, Rand Paul issued the following statement regarding the newly released NDAA conference report.

“The amendment, introduced by Sens. Dianne Feinstein (D-Calif.) and Mike Lee (R-Utah) and which passed with a 67-29 vote on Nov. 29, was designed to guarantee Americans the right to due process and a jury trial. These are basic and core American legal privileges prescribed in our Bill of Rights, which have been observed since our nation’s founding. Removing these indefinite detention protections now means that the NDAA is in violation of the Fourth and Fifth Amendments of the Constitution.

“The decision by the NDAA conference committee, led by Sen. John McCain (R-Ariz.) to strip the National Defense Authorization Act of the amendment that protects American citizens against indefinite detention now renders the entire NDAA unconstitutional,” Sen. Paul said. “

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“Corporate strategists at McDonald’s are urging franchises to stay open this year on Christmas Day in order to boost sales. But fast-food workers won’t be earning any extra holiday pay for showing up on December 25.

McDonald’s already did the unthinkable last month when many of its 14,000 U.S. franchises were open on Thanksgiving Day, which resulted in an average of an extra $6,000 for each restaurant. That translated to a 2.5% corporate sales growth for November, a noticeable jump from the company’s 2.2% drop the month prior.

Being open on Christmas Day may produce similar numbers, according to McDonald’s USA Chief Operating Officer Jim Johannesen, who wrote in a memo that franchises operating on December 25, 2011, made about $5, 500 on average.

Low-wage employees at McDonald’s don’t receive holiday pay, however. Working on December 25 is strictly voluntary, the corporation insists.

That means those serving up Big Macs will earn the usual hourly wage, which according to the Food Chain Workers Allianceaverages about $9.65 an hour. ”

 

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“Prices again crept gradually higher in Asian trading prior to some retrenchment in early European trading but dollar weakness was supporting gold and silver.

Further weakness could be seen and it is worth noting that gold and silver saw considerable weakness last December (see chart above) and both bottomed near year end on December 29th prior to strong gains in January 2012.

Support for silver is at $30.67/oz and $30/oz. Gold’s support is at $1,647/oz and below that at $1,600/oz.

Silver will rise as much as 29% to $40.25/oz, from $31.10/oz today, in 2013.

This is based on the median estimate of 49 analysts, traders and investors compiled by Bloomberg.

Global investment through silver backed exchange traded products reached a record 18,854 metric tons in November, or more than nine months of mine output, data compiled by Bloomberg show. Holdings are now valued at about $19.2 billion.

Bullion dealers all over the world report robust demand for silver and there has been a shift in many Asian and Middle Eastern markets from gold to silver – due to silver’s relative cheapness and undervaluation versus gold.

According to Bloomberg, one of Singapore’s largest suppliers of coins and bars to retail investors, says sales tripled since October, part of a global surge in demand for silver that drove holdings to a record….”

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“(Reuters) – Activist investor Bill Ackman ramped up his campaign against Herbalife Ltd on Thursday with a three-hour presentationin which he called the weight management products company an unsustainable “pyramid scheme.”

The company responded by saying Ackman’s presentation was riddled with numerous “misstatements and mistakes” and complained its executives were denied access to the event.

Investors surveying the battle, now in its second day, sent Herbalife shares down 10 percent to $33.50 in afternoon trading, adding to Wednesday’s 12 percent fall.

Thursday’s presentation by Ackman came a day after he confirmed that his $11 billion Pershing Square Capital Management is betting against the company. Best known for agitating for management change at companies his fund invests in, Herbalife is emerging as one of Ackman’s biggest short positions in years.

The hedge fund manager outlined his case for shorting shares of Herbalife in a lengthy presentation entitled “How to be a millionaire,” that featured more than 300 slides questioning how the company generates it sales and the pricing models for its products.

Speaking before a crowd of more than 500 at an event sponsored by a charitable group, Ackman said he is so sure of his position that he believes the company’s stock price will eventually go to zero. The manager promised to continue the assault by putting up a website to continue his critique that Herbalife has grown remarkably rapidly without demonstrating “much substance” to justify its growth.

“We have an enormous short position and we believe we are right,” Ackman said.

Herbalife responded by saying there were many misstatements and mistakes in Ackman’s presentation. “Had our executives been there, they would have been able to tear Mr. Ackman’s premises and interpretation of our business model apart,” Herbalife’s statement said.

For his part, Ackman criticized the company for allegedly inflating the suggested retail price of its products and overstating its retail sales in public filings. Ackman also accused the company of targeting the poor and ill-informed to become distributors of its products.

“A pyramid scheme is actually a modern day version of a Ponzi scheme,” Ackman said.

On Wednesday, Herbalife Chief Executive Michael Johnson said Ackman’s charge about being a pyramid scheme was “bogus,” and he criticized Ackman for using a public attack on his company to benefit his “business model…..”

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“The Facebook IPO in May was a disaster.

Hyped up as the must-buy of the decade, the stock faltered as soon as it opened, and the shares then crashed more than 50% over the next few months.

IPO buyers got demolished. Facebook’s reputation took a dive. Lawsuits and recriminations commenced.

The main problem with the IPO was that investors paid way too much for the stock.

Most of the responsibility for this decision, unfortunately, lies with the investors themselves. No one made anyone pay $38 a share for Facebook.

But some of the fault lies with Facebook, Facebook’s bankers, and some idiotic IPO information-disclosure rules.

During the IPO roadshow, sophisticated institutional investors got important negative information about Facebook that small investors didn’t get. This made the institutions much less enthusiastic about Facebook than some less-informed small investors turned out to be….”

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U.S. equities pared small early morning losses. As Speaker Boehner pointed out in a press conference, plan B was an agreement that many Dems voted for two years ago and expects that everything should be acceptable today. Based on this Boehner would like to see a bipartisan deal that allows members of congrss to go home for the holidays knowing they did the right thing for America.

Currently the DOW is up 43 bones. The dollar is down, oil is flat, treasuries are seeing big outflows, and gold is receiving a minor homo hammer.

Market update

3D heat map 

[youtube://http://www.youtube.com/watch?v=mDsqpeiTqg8 450 300]

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