Monthly Archives: December 2012
Oil Trades Flat at a One Month High, Bumping Up Against Major Resistance
“Brent crude traded near the highest level in one month as U.S. lawmakers prepared to resume budget talks and the United Arab Emirates said it arrested members of a terror cell that was planning attacks on oil-exporting nations.
Futures were little changed in London after rising the most in five weeks yesterday. PresidentBarack Obama and legislators returned to Washington for talks aimed at averting more than $600 billion in tax gains and spending cuts that start Jan. 1. The U.A.E. coordinated with Saudi Arabian officials to arrest members of the terror group who had equipment needed for their attacks, according to the official WAM news agency.
“The arrests in the U.A.E. appear to have had a big impact with lower liquidity in the oil market,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts Brent will average $112 a barrel in the first quarter. “Fundamentals look pretty balanced.”
Brent for February settlement fell 39 cents to $110.68 a barrel on the London-based ICE Futures Europe exchange at 1:03 p.m. local time. The volume was 46 percent less than the 100-day average. Prices yesterday gained $2.27, or 2.1 percent, to settle at $111.07, the highest close since Nov. 30.
West Texas Intermediate for February delivery was unchanged at $90.98 a barrel in electronic trading on the New York Mercantile Exchange. The volume traded for all contracts was 39 percent below the 100-day average. Futures advanced $2.37 to $90.98 yesterday. The European benchmark crude was at a premium of $19.67 to WTI….”
Comments »Q4 of 2012 Saw the Largest Amount of M&A Deals in Four Years
“Global mergers and acquisitions rose to the highest level in four years this quarter, as a surge in U.S. deals provided ground for optimism and salvaged what had been the worst year for takeovers since the financial crisis.
Companies worldwide have announced $691.9 billion in purchases in the final three months of the year, the most since the third quarter of 2008, according to data compiled by Bloomberg. While transactions for all of 2012 shrank about 10 percent to $2.19 trillion, the same level as 2010, about $86 billion of telecommunications deals, including Softbank Corp.’s planned purchase of a stake in Sprint Nextel Corp., gave the end of the year a boost.
Chief executive officers sitting on more than $3.5 trillion in cash held off on deals for most of 2012 as Europe slid into recession, developing economies such as China cooled and $600 billion in possible spending cuts and tax increases threatened U.S. growth. The pickup in takeovers may extend into next year as American and European lawmakers take more decisive steps to fortify the global economic recovery, said Gene Sykes, global head of M&A at Goldman Sachs Group Inc.
“Wait and see has been the dominant attitude of corporations’ approach to acquisitions because of the macroeconomic uncertainty due to the U.S. fiscal cliff and the euro debt crisis,” said Sykes, whose New York-based firm was the top adviser on M&A globally this year. “Once these crises find a solution there will likely be a rebound in activity driven by continuing consolidation in natural resources, industrials, technology and financial services…..”
Comments »Tech Stocks Help Emerging Markets to Rise
“Emerging-market stocks rose for a fourth day, led by technology companies, as China’s industrial profits increased and U.S. lawmakers prepared to resume budget talks.
BYD Co. (1211), the Chinese carmaker partly owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), climbed to an eight-month high in Hong Kong after saying it plans to build a solar power plant. HTC Corp. (2498) advanced to the strongest level in three months in Taipei.Turkiye Is Bankasi (ISCTR) AS, Turkey’s largest bank by assets, gained 1.3 percent as the country’s benchmark index climbed to a record high.
The MSCI Emerging Markets Index added 0.4 percent to 1,050.68 at 11:17 a.m. in London, heading for its biggest gain in more than a week. Net income at Chinese industrial companies increased 22.8 percent to 638.5 billion yuan ($102 billion) in November from a year earlier, according to government data today. U.S. lawmakers today will resume budget negotiations aimed at avoiding more than $600 billion in tax increases and spending cuts scheduled to take effect Jan. 1…”
Comments »Industrial Companies in China Post a Third Month of Profits
“Chinese industrial companies’ profits rose for a third month in November, supporting a rebound in economic growth that may ease the transition to the nation’s new leadership.
Net income gained 22.8 percent from a year earlier to 638.5 billion yuan ($102 billion), theNational Bureau of Statistics said today in Beijing, after a 20.5 percent rise in October.
The world’s second-biggest economy is set for the first pickup in growth in eight quarters after the government accelerated investment-project approvals and boosted spending on infrastructure. The new Communist Party leadership led by Xi Jinping is seeking to sustain the recovery without fueling property-price bubbles or adding to bad-loan risks in the banking system.
“China’s economic recovery trend is quite clear now, and growth in the first half of 2013 will be strong as local governments are eager to start new investment projects now,’ Shi Lei, a Beijing-based analyst with Founder Securities Co., said before the release. ‘‘At the same time, recovery prospects are clouded by weak external demand and a possible crackdown from regulators on the shadow banking system.”
The Shanghai Composite Index (SHCOMP) of stocks advanced yesterday to the highest level in five months after investors wiped out losses of as much as 11 percent during this year. The gauge was 0.1 percent lower as of 11:30 a.m local time today on concern a rally that lifted shares from an almost four-year low is excessive.
Beige Book
A separate report pointed to limits on China’s recovery….”
Comments »Copper and Other Non Precious Metals Gain for a Second Day to the Highest Levels in Two years
“Copper futures rose for a second day in New York before a U.S. government report on new home sales that economists said probably rose in November to the highest level in more than two years…”
Comments »French Consumer Confidence Suddenly Rises, Euro Hits an Eight Month High
“The euro strengthened toward an eight-month high versus the dollar after French consumer confidence unexpectedly improved this month, underpinning demand for the region’s assets.
Europe’s shared currency gained for a second day against the yen after Italian business confidence also increased. The yen weakened against all 16 of its major counterparts before a report tomorrow forecast to show Japanese consumer prices fell, fueling speculation Prime Minister Shinzo Abe will push the central bank to add stimulus. The Dollar Index declined as U.S. lawmakers return to Washington to try to craft a deal to avert the so-called fiscal cliff.
“We aren’t in as desperate times as we were in the middle of this year and there’s some upward pressure on the euro,” saidSimon Smith, chief economist at FxPro Group Ltd. in London. “With the yen being under pressure, the euro is benefiting. The market is looking with a certain degree of caution at the yen because the politicians are talking tough.”
The euro appreciated 0.3 percent to $1.3265 at 7:14 a.m. New York time after rising to $1.3308 on Dec. 19, the highest since April 3. The common currency gained 0.6 percent to 113.86 yen after climbing to 113.91 yen, the strongest since Aug. 4, 2011. The yen fell 0.2 percent to 85.83 per dollar.
An index of French household sentiment rose to 86 in December from 84 in November, the first monthly increase since May, the national statistics office Insee said. Economists forecast an unchanged reading of 84, according to a Bloomberg survey. A gauge of Italian business climbed to 88.9 from 88.5, according to Rome-based national statistics institute Istat.
Euro’s Advance
The euro has appreciated 2.9 percent in the past three months, the second best performer of 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes after the Swiss franc. The yen tumbled 11 percent and the dollar dropped 0.1 percent….”
Comments »The Aussie Dollar Takes Another Hit, Biggest Drop Since August
“Australia’s dollar fell against all of its 16 major counterparts as U.S. lawmakers prepared to resume talks on how to avoid spending cuts and tax increases that could send the world’s biggest economy into recession.
The so-called Aussie headed for the biggest monthly drop since August versus the greenback and New Zealand’s dollar held an eight-day retreat after Treasury Secretary Timothy F. Geithnersaid he will take “extraordinary measures” to postpone a U.S. default into early 2013 while President Barack Obama and Congress work out a deficit-reduction deal. Declines in the South Pacific nations’ currencies were limited before data that may signal a pickup in China’s economy.
“Uncertainty and concerns about the fiscal cliff are starting to weigh on risk markets,” said Peter Dragicevich, a currency economist in Sydney at Commonwealth Bank of Australia. (CBA) “The Aussie and the kiwi are naturally susceptible to declines in global equity markets, particularly the U.S. markets.”
The Australian dollar slid 0.3 percent to $1.0349 as of 4:07 p.m. in Sydney, headed for a 0.8 percent decline this month. The Aussie bought 88.81 yen from 88.87 yesterday.
New Zealand’s dollar was unchanged at 81.98 U.S. cents from yesterday, when it touched 81.56, the lowest since Nov. 23. The currency fell 3.1 percent in the eight sessions through yesterday. It rose 0.3 percent to 70.35 yen.
Yields on 10-year Australian government bonds advanced one basis point to 3.35 percent…”
Comments »Gold and Silver Fall as Producers Dump
Source
“Gold fell in London on selling by mining companies seeking to hedge against the possibility of lower prices next year. Silver also declined.
Gold at the morning “fixing” in London when some miners sell output was $1,655.25 an ounce, down 0.4 percent from the last fixing on Dec. 24. Gold climbed 5.9 percent this year as investors and central banks purchased the metal.
“We saw a good amount of producer selling at the fix,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said by phone today. “It just gave an opportunity for bargain hunters to replenish stocks.”
Gold for immediate delivery fell 0.2 percent to $1,656.57 an ounce by 11:17 a.m. in London, the first drop in five days. Silver declined 0.1 percent to $29.97 an ounce, platinum was little changed at $1,537.12 an ounce and palladium gained 0.4 percent to $695.15 an ounce.”
Comments »South Korea Cuts 2013 GDP Estimates Based on Europe’s Far Reaching Woes
“South Korea lowered its growth forecasts for this year and for 2013 in the first revisions since a new president was elected on Dec. 19.
Gross domestic product will expand 3 percent next year, the Finance Ministry said in a statement in Sejong, less than the 4 percent predicted in September. Growth may be 2.1 percent this year, versus a previous 3.3 percent estimate.
The update brings the government’s forecasts closer to those of private economists and the central bank as Europe’s debt crisis caps demand for the nation’s exports. The pace of expansion next year may partly depend on the extent of any extra spending by president-elect Park Geun Hye, who will take office in February.
“Downside risks from Europe are bigger than anticipated,” said Choi Sang Mok, a director general at the ministry.
The Kospi index of stocks fell 0.3 percent as of 1:43 p.m. in Seoul, paring gains for the year to 8.3 percent. The won appreciated 0.1 percent to 1,072.00 per dollar, according to data compiled by Bloomberg, with this year’s 7.5 percent advance the biggest among Asia’s 11 most-traded currencies.
The Bank of Korea said today that it will support the recovery while also examining possible economic imbalances “arising from the extended duration of its accommodative monetary policy stance.”
Comments »European Markets Try to Hang On to Early Gains
European stocks were little changed after the Christmas holiday as U.S. lawmakers return toWashington to try for a solution to the fiscal cliff. U.S. index futures were little changed, while Asian shares advanced.
Clariant (CLN) AG, a Swiss chemical company, rose 3.5 percent after selling three units. Total SA (FP), France’s biggest oil company, climbed 1.4 percent. Bankia tumbled 14 percent as Spain’s bank-rescue fund said its parent company has a negative value of 10.4 billion euros ($13.8 billion).
The Stoxx Europe 600 Index (SXXP) increased 0.1 percent to 280.76 as of 10:50 a.m. in London. Trading volume was 17 percent less than the 30-day average, according to data compiled by Bloomberg. The gauge has rallied 15 percent in 2012 as the European Central Bank introduced an unlimited bond-buying program, putting it on course for the best year since 2009.
“What will give the market direction is fiscal-cliff news,” saidArnaud Scarpaci, a fund manager at Montaigne Capital in Paris, which oversees $225 million. “If there isn’t an agreement tonight, we can start worrying. If there is an agreement, we can have a little rally.”
Futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent today. The MSCI Asia Pacific Index (MXAP) rose 0.4 percent as Japan’s benchmark Nikkei 225 Stock Average surged to the highest since March 2011 amid calls from the new government for more monetary easing…”
Comments »Asian Markets Pare Early Gains
“Asian stocks rose, with the regional benchmark index headed for a second month of advance, as the yen touched a 27-month low against the dollar on prospects for more stimulus andChina’s industrial companies’ profit gained.
Mazda Motor Corp. (7261), an automaker that gets 28 percent of its sales in North America, advanced 7.1 percent in Tokyo as newly installed premier said “bold’ monetary policy is one of the three pillars of his economic measures. Country Garden Holdings Co. (2007), a Chinese real estate developer, rose 3.4 percent in Hong Kong, whose equity market reopened after a two-day holiday. SK Telecom Co., the mobile telephone carrier among 119 companies trading without rights to year-end dividends on South Korea’s benchmark index, dropped 4.1 percent.
The MSCI Asia Pacific Index gained 0.4 percent to 129.01 at 6:49 p.m. in Tokyo. Almost two stocks rose for each that fell on the measure, which has advanced 13 percent this year. Japanese shares rose to their highest since just before last year’s record earthquake and tsunami…”
Comments »The Yen Continues to Slide Against the Euro and Other Currencies
“The yen weakened to a 16-month low against the euro on speculation the government will take steps to boost growth. European stocks and U.S. equity futures rose as U.S. lawmakers prepared to meet for budget talks. Italian 10- year bonds stayed lower after a debt auction.
The Japanese currency dropped 0.6 percent to 113.9 per euro as of 12:35 p.m. in London after weakening to 113.97, the lowest since Aug. 4, 2011. The Stoxx Europe 600 Index (SXXP) rose 0.3 percent, bringing this year’s advance to 15 percent. Futures on the Standard & Poor’s 500 Index increased 0.2 percent. Italian 10- year yields climbed four basis points. The cost of insuring against default on European corporate debt rose to a one-week high. Turkish stocks rose to a record…”
Comments »Global Markets Trade Unch Apart From a Few European Markets, U.S. Futures Look to Erase Yesterday’s Losses
Bill Ackman, The Consumer Protection Advocate, Short 20 Million Shares of $HLF From $55
Piers Morgan Counter-Petition: ‘No One In The UK Wants Him Back’
Gun advocates are not the only ones speaking out about Piers Morgan. There’s now a counter-petition to keep the CNN host in the United States that reads, “No one in the UK wants him back.”
The counter-petition was started on the White House website on Tuesday, and had 126 signatures as of Wednesday morning. It cites three reasons that Morgan should stay in the country.
“Firstly, the first amendment,” it begins. “Second and the more important point. No one in the UK wants him back. Actually there is a third. It will be hilarious to see how loads of angry Americans react.”
Full article here
Comments »Fathers disappear from households across America
In every state, the portion of families where children have two parents, rather than one, has dropped significantly over the past decade. Even as the country added 160,000 families with children, the number of two-parent households decreased by 1.2 million. Fifteen million U.S. children, or 1 in 3, live without a father, and nearly 5 million live without a mother. In 1960, just 11 percent of American children lived in homes without fathers.
Full article here
Comments »Kwanzaa is a Holiday Exclusive For Idiots
Most absurdly, for leftists anyway, they have forgotten the FBI’s tacit encouragement of this murderous black nationalist cult founded by the father of Kwanzaa.
Kwanzaa emerged not from Africa, but from the FBI’s COINTELPRO. It is a holiday celebrated exclusively by idiot white liberals. Black people celebrate Christmas. (Merry Christmas, fellow Christians!)
Sing to “Jingle Bells”:
Kwanzaa bells, dashikis sell
Whitey has to pay;
Burning, shooting, oh what fun
On this made-up holiday!
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This Man is Going to Prison #DAVIDGREGORY
The Economy Does Not Need the Shut Down of Ports Along the East Coast and Texas
“All major American ports along the East Coast and Texas could shutdown Sunday if a dock worker’s union fails to agree to a new contract, the New York Post’s Josh Margolin reports.
That outcome seems likely, he says.
Port managers, after a meeting yesterday morning, told The Post they believe there will be no last-minute agreement between the dock-workers union and the shipping companies to avert a walkout….”
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