Home / 2013 / January (page 10)

Monthly Archives: January 2013

$F Posts Better Than Expected Profits

Ford Motor Co. (F), the second-largest U.S. automaker, reported fourth-quarter profit that exceeded estimates as demand for its F-Series pickups drove record results for its operations in North America.

Ford reported net income of $1.6 billion, or 40 cents a share. Excluding one-time items, the per-share profit was 31 cents, exceeding the 25-cent average estimate of 19 analysts surveyed by Bloomberg. The result compared with net income of $13.6 billion, or $3.40 a share, a year earlier, when a tax gain boosted fourth-quarter earnings. Ford said European losses were wider than forecast and the 2013 deficit would be worse….”

Full report

Comments »

ECB Rejects a 15 Year Plan to Bailout Anglo Irish Bank

“European Central Bank policy makers rejected an Irish government plan designed to fund the rescue of the former Anglo Irish Bank Corp. for at least 15 years, according to three people with knowledge of the discussions.

Under the proposal, the Irish central bank would have signed a contract guaranteeing to hold for at least a decade and a half a long-term bond issued to replace about 30 billion euros ($40.4 billion) of so-called promissory notes used to rescue the lender in 2010, according to the people, who declined to be identified because the talks are private…”

Full article

Comments »

Ukraine Files For a Third Bailout Loan With the IMF

“Ukraine will press for a third international bailout in four years this week as the former Soviet republic gears up for $10 billion of debt payments and foreign reserves languish near a two-year low.

Under pressure from a shrinking economy and an energy dispute with Russia’s OAO Gazprom (GAZP), the government will seek a $15.4 billion loan when an International Monetary Fund mission arrives today in the capital, Kiev. Its last aid package, which ended Dec. 27, was halted for failure to meet the fund’s terms.

Ukraine is grappling with falling output of steel, its top export earner, a widening current-account gap and reserves that have fallen below three months of imports. While the government can finance itself in global debt markets at present, an IMF accord is required to put the country on a “sustainable path,” according Viktor Szabo, who helps manage $10 billion at Aberdeen Asset Management (ADN) in London.

“They need a deal,” said Szabo, whose fund exited Ukrainian state and corporate debt in November because of the absence of an IMF agreement. “The current-account deficit isn’t sustainable as seen from the pressure on the currency and reserves.”

The hryvnia has fallen 1.7 percent during the last year to to 8.1435 per dollar, prompting the central bank to sell foreign currency. Reserves dropped to $24.5 billion in December from $38.2 billion in August 2011 as the current-account gap widened to a record $14.4 billion in all of 2012, when imports averaged $8.6 billion a month, according to the central bank data.

Debt Repayments…”

Full article

Comments »

Posco, The Third Largest Steelmaker, Guides Lower as Profits Fall

“Posco, Asia’s third-biggest steelmaker by output, forecast sales may fall this year after reporting worse-than-estimated fourth-quarter profit as waning orders from carmakers and shipbuilders lowered prices.

Sales on a parent basis may slip to 32 trillion won ($29 billion) in 2013 from 35.7 trillion won in 2012, the Pohang, South Korea-based company said in a regulatory filing today. Net income was 513 billion won in the three months ended Dec. 31, compared with 767 billion won a year earlier, missing the 592.6 billion won average of 18 analyst estimates compiled by Bloomberg.


economic slowdown and Europe’s fiscal crisis have reduced demand for steel used in houses, cars and ships, squeezing profits at global steelmakers. Posco (005490) today said an “unprecedented slump” in the worldwide steel market cut prices and hurt profits last year. The company also forecast its crude steel output may decline this year.

“Steel companies including Posco will have to accept the new normal — lower demand, lower price and narrower margin,” said Kim Hag Ju, chief investment officer at Woori Asset Management Co., which oversees $19 billion in assets. “We won’t see the steel boom era that we’ve watched in the past decade spurred by China’s growth.”

Posco fell 0.1 percent to 355,500 won at the close in Seoul today, while the local benchmarkKospi index gained 0.8 percent. The stock has climbed 1.9 percent this year, compared with a 2.1 percent drop in Kospi. (KOSPI) The earnings announcement came after the stock market closed.

’Severe Competition’…”

Full article


Comments »

The Dollar Falls Against the Yen for a Second Day

“U.S. stock-index futures fell and the dollar weakened against the yen for a second day before a report on consumer confidence and a Federal Reserve two-day meeting. European stocks were little changed and India’s rupee rebounded from a one-week low.

Standard & Poor’s 500 Index futures lost 0.4 percent at 7:15 a.m. in New York. The Stoxx Europe 600 Index slipped less than 0.1 percent. The dollar declined 0.4 percent versus the yen. The yield on 10-year Treasuries fell one basis point after yesterday rising above 2 percent for the first time since April. India’s rupee strengthened for the first time in three days against the U.S. currency as the central bank took steps to shore up the economy….”

Full article

Comments »

Shanghai Markets Bounce 20% From the Lows Entering Bull Territory

“China’s stocks rose, sending the benchmark index into a bull market, on optimism over the outlook for the nation’s economy. Financial and energy shares led gains.

The Shanghai Composite Index (SHCOMP) climbed 0.5 percent to 2,358.98 at the close, extending its advance since Dec. 3 to 20 percent, a threshold signaling a bull market to some investors. Haitong Securities Co., the second-biggest listed brokerage jumped 7.3 percent, leading a rally for financial shares. Shanxi Lu’an Environmental Energy Development Co. surged 3.1 percent as oil traded near the highest level in four months in New York.

Chinese stocks have rallied since approaching a four-year low last month on signs of an economic recovery and a government pledge to bolster urban development. A government report showed yesterday industrial companies’ profits jumped 17.3 percent last month. A preliminary reading for a Purchasing Managers’ Index last week showed manufacturing expanded at the fastest rate in two years.

“The economic is recovering and this is the year of reforms by new leaders, so there are a lot of expectations,” Deng Wenyuan, an analyst at Soochow Securities Co., said by phone from Suzhou, near Shanghai. “We are expecting urbanization to pick up pace and there are hopes for more liquidity in the stock market. This rally should continue.”

The CSI 300 Index (SHSZ300) advanced 0.9 percent to 2,675.87 today and is up 27 percent since Dec. 3. The Hang Seng China Enterprises Index (HSCEI) slid 0.3 percent today. The Bloomberg China-US 55 Index increased 0.1 percent in New York yesterday.

The Shanghai Composite exited its longest-ever bear market today. A 756-day stretch without a 20 percent gain from Nov. 8, 2010, through Dec. 3 is the longest on record, according to data compiled by Bloomberg and Birinyi Associates Inc. The gauge fell 38 percent during the period.

Financials Rally…”

Full article

Comments »

The Aussie and Kiwi Dollars Rise as Speculators Take Markets Higher

“Australian and New Zealand bonds tumbled, boosting their benchmark 10-year yields to the highest in at least four months, as gains in Asian stocks sapped demand for the relative safety of government securities.

The so-called Aussie dollar rose against 14 of its 16 major counterparts after data showed the nation’s business confidence for December rebounded by the most in more than a decade. New Zealand’s currency, nicknamed the kiwi, gained, snapping a three-day drop against the greenback after the nation’s annual trade deficit unexpectedly narrowed.

“The bond yields in Australia and New Zealand jumped quite a bit,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia (CBA), the nation’s largest lender. “The global environment of higher bond yields, as well as a rise in equity markets, is providing some support to the Aussie and kiwi.”

Yields on Australia’s 10-year government bonds increased nine basis points to 3.5 percent at 4:53 p.m. in Sydney, after touching 3.51 percent, the most since Aug. 16. The comparable rate in New Zealand jumped 10 basis points, or 0.1 percentage point, to 3.66 percent, the highest since Sept. 19.

Australia’s dollar rose 0.4 percent to $1.0454 from the close yesterday when it touched $1.0385, the least since Jan. 2. It advanced 0.2 percent to 94.83 yen after earlier falling as much as 0.5 percent. New Zealand’s dollar climbed 0.3 percent to 83.68 U.S. cents and rallied 0.2 percent to 75.91 yen.

The MSCI Asia Pacific Index of shares climbed 0.8 percent.

Confidence Jumps…”

Full article

Comments »

$YHOO Posts $0.32 vs Consensus of $0.28, Revenues Beat Estimates Too

Display adds were down significantly…

” “I’m proud of Yahoo!’s 2012 and fourth quarter results. In 2012, Yahoo! exhibited revenue growth for the first time in 4 years, with revenue up 2 percent year-over-year,” said Yahoo! CEO Marissa Mayer. “During the quarter we made progress by growing our executive team, signing key partnerships including those with NBC Sports and CBS Television, and launching terrific mobile experiences for Yahoo! Mail and Flickr. At the same time, we achieved tremendous internal transformation in the culture, energy and execution of the Company.”

GAAP revenue was $1,346 million for the fourth quarter of 2012, a 2 percent increase from the fourth quarter of 2011. Revenue excluding traffic acquisition costs (“revenue ex-TAC”) was $1,221 million for the fourth quarter of 2012, a 4 percent increase compared to the fourth quarter of 2011. GAAP revenue was $4,987 million for the full year of 2012, flat compared to the prior year. Revenue ex-TAC was $4,468 million for the full year of 2012, a 2 percent increase from the prior year.

Adjusted EBITDA for the fourth quarter of 2012 was $509 million, an 8 percent increase from the same period of 2011. Adjusted EBITDA was $1,699 million for the full year of 2012, a 3 percent increase from the prior year.

GAAP income from operations decreased 22 percent to $190 million in the fourth quarter of 2012, compared to $242 million in the fourth quarter of 2011. Non-GAAP income from operations was $283 million in the fourth quarter of 2012 compared to $259 million in the fourth quarter of 2011. GAAP income from operations for the full year of 2012 was $566 million, compared to $800 million for the prior year. Non-GAAP income from operations was $825 million in both years.

GAAP net earnings for the fourth quarter of 2012 was $272 million, an 8 percent decrease from the same period of 2011. Non-GAAP net earnings for the fourth quarter of 2012 was $370 million, a 20 percent increase from the same period of 2011. GAAP net earnings for the full year of 2012 was $3,945 million, compared to $1,049 million for the prior year. For the full year of 2012, GAAP net earnings included a net gain of $2,755 million related to the sale of Alibaba shares. Non-GAAP net earnings for the full year of 2012 was $1,407 million, a 35 percent increase from the prior year.

GAAP net earnings per diluted share was $0.23 in the fourth quarter of 2012, compared to $0.24 in the fourth quarter of 2011. Non-GAAP net earnings per diluted share was $0.32 in the fourth quarter of 2012, compared to $0.25 in the fourth quarter of 2011. GAAP net earnings per diluted share was $3.28 for the full year of 2012, compared to $0.82 for the prior year. For the full year of 2012, GAAP net earnings included a net gain of $2,755 million, or $2.29 per diluted share, related to the sale of Alibaba shares. Non-GAAP net earnings per diluted share was $1.17 for the full year of 2012, compared to $0.81 for the prior year.

Business Highlights…” 

Full report

Comments »

President George HW Bush Religious Crusade Bonds • Laundered Drug Money •

“The following is from a being known as Ernest Bey aka “Ernest Rauthchild” (no current known relationship to the banking family Rothschild)….
These are the bonds financing President George HW Bush Religious Crusade including the identifiers. They are said (by Earnest) to be laundered drug trafficking money….”

Comments »

Obama Health Reform Allows Insurance Companies to Charge Smokers 50% More than Non-Smokers

“Starting in 2014, the Affordable Care Act (ACA or Obamacare) will prohibit insurance companies from discriminating against people with pre-existing health conditions. Although ACA guarantees access to the chronically unwell, including those who are overweight, or have a condition like diabetes, it will allow insurers to charge up to 50% higher rates to smokers, because smoking is considered an optional behavior, not an illness. As a result, millions of smokers may find that health insurance is just too expensive.


To be clear, under present law insurance companies already charge smokers more and are even allowed to deny them coverage altogether because of their higher rates of serious illness like cancer and heart disease. The premium, which rises with a smoker’s age, was in part the result of a lobbying campaign by anti-smoking health advocates, and constituted a compromise solution.


Now, however, some are questioning whether the ACA is too burdensome on smokers, especially since smokers tend to be lower-income and to work in jobs without insurance benefits. For example, a 55-year-old smoker could pay a smoking premium of as much as $4,250 a year, while a 60-year-old could pay up to $5,100….”

 Full article

Comments »

Computer Model Says 49ers Over Ravens In Super Bowl XLVII

“PHILADELPHIA (CBS) – Super Bowl XLVII will only be played once, and it will be on the field in New Orleans. But with two weeks to fill in between the championship games and the Super Bowl, there’s some time to run some numbers.

PredictionMachine.com, a website that predicts the outcome of sporting events based on computer models, ran more than just “some” numbers. They ran Sunday’s 49ers vs. Ravens match-up through their system 50,000 times to see what the most likely outcome of the game will be.

The 49ers won the game 66.9% of the time, and scored an average of seven points more than the Ravens in the simulations (28.6 to 21.3), with San Francisco outgaining the Ravens by an average of 85 yards per game…..”

Full article

Comments »

Teflon Don, RICK BOSS ROSS, Targeted in Drive By Shooting, Escapes Unscathed

MMG boss Rick Ross was reportedly the victim of a drive-by shooting that took place early Monday morning (January 28) in Fort Lauderdale, Florida.

Witnesses told Fort Lauderdale station WPLG that they spotted Ross and a female passenger inside a Rolls Royce that was fired upon by as-yet-unknown assailants and targeted with nearly two dozen bullets.

A spokesperson for the Ft. Lauderdale Police Department could not be reached for comment at press time. The shooting occurred around 5 a.m. Monday, when police received several calls from residents reporting shots fired near the corner of Las Olas Boulevard and 15th Avenue. Though police did not identify the passengers in the car, they confirmed that there were two people in it when another vehicle approached and someone inside fired multiple shots.

The Huffington Post reported that a Ft. Lauderdale police source confirmed that Ross (born William Roberts), was a passenger in the car that crashed after “dozens” of shots were fired at it.

The driver of the Rolls tried to get away and ended up crashing the vehicle into a residential apartment building on 15th Avenue. No one was injured in the incident and at press time MTV News was still awaiting for comment from a spokesperson for Ross.

An investigation is ongoing to find the people responsible for the shooting, but so far no official information has been released about the suspects or the vehicle they were driving. Police had also not officially released the names of the victims, who, Fort Lauderdale PD spokesperson Det. DeAnna Garcia told NBC Miami, are requesting anonymity because they “are fearful for their lives and their families’ lives after the shooting. An employee at the nearby Floridian diner told the station that Ross and a woman were in the car and that the God Forgives, I Don’t MC appeared shaken up by the incident. Ross was reportedly celebrating his birthday at the diner earlier in the night and the shots were fired as he got into his vehicle.

The Miami Herald reported that the restaurant was hit by a handful of the 15 or so bullets, with some striking a window and a cooler, though none appear to have hit the Rolls.

Another witness said that Ross had recently bought a house in the area.

Full Article

Comments »

Your Tax Dollars at Work: Treasury Disregarded Own Guidelines, Allowed Executive Raises At Bailed-Out GM, AIG


“WASHINGTON — A watchdog says the U.S. Treasury Department disregarded its own guidelines and allowed large pay increases for executives at three firms that had received taxpayer-funded bailouts during the financial crisis.

The Special Inspector General for Troubled Asset Relief Program says Treasury approved 18 raises for executives at American International Group Inc., General Motors Corp. and Ally Financial Inc. Of those requests, 14 were for $100,000 or more. One raise, for the CEO of a division at AIG, was for $1 million.

The three firms received a combined nearly $250 billion from the bailout fund. Only AIG has fully repaid its $182 billion bailout.

The report says Treasury approved raises that exceeded pay limits and in some cases failed to link compensation to performance.”

Comments »

Homeland Security’s Napolitano Invokes 9/11 to Push for CISPA 2.0

“In an attempt to scare the public with a looming cyber attack on US infrastructure, US Homeland Security Secretary Janet Napolitano is once again pushing Congress to pass legislation allowing the government to have greater control over the Internet.

Napolitano issued the warnings Thursday, claiming that inaction could result in a “cyber 9/11” attack that could knock out water, electricity and gas, causing destruction similar to that left behind by Hurricane Sandy.

Napolitano said that in order to prevent such an attack, Congress must pass legislation that gives the US government greater access to the Internet and cybersecurity information from the private sector. Such a bill, known as CISPA or Cyber Intelligence Sharing and Protection Act, was already introduced last year, but failed to pass in Congress due to concerns expressed by businesses and privacy advocates.

“We shouldn’t wait until there is a 9/11 in the cyber world. There are things we can and should be doing right now that, if not prevent, would mitigate the extent of the damage,” Napolitano said in a speech at the Wilson Center, a Washington, DC think tank.

Defense Secretary Leon Panetta has also been a strong advocate for increased governmental grip on the web and in October warned that the US is facing a possible “cyber-Pearl Harbor” by foreign hackers.

“A cyber attack perpetuated by nation states or violent extremist groups could be as destructive as the terrorist attack of 9/11,” he said during a speech. “Such a destructive cyber terrorist attack could paralyze the nation.”

Last September, Napolitano reiterated disappointment with Congress for failing to pass the cybersecurity legislation in August.

“Attacks are coming all the time,” she said in a speech at the Social Good Summit. “They are coming from different sources, they take different forms. But they are increasing in seriousness and sophistication.”

Despite Homeland Security’s constant warnings that hackers could shut down critical US infrastructure, the Cybersecurity Act of 2012 was shot down by the Senate in August, even though the Obama administration had pushed for the bill in numerous hearings and briefings….”

Full article

Comments »

$CVX Documents Reveal Bribery in Ghostwriting Judgement

” In documents filed with the federal district court in Manhattan this morning, Chevron Corp. (NYSE: CVX) for the first time included evidence of bribery in the $18 billion judgment against the company levied by an Ecuadoran court nearly two years ago. Chevron today presented a declaration from a former Ecuadorian judge who says he and another former judge effectively allowed the plaintiffs’ attorneys to write the 188-page judgement against Chevron in exchange for $500,000…”

Full article

Comments »

Richard Koo Says The Balance Sheet Recession is Far From Over


“There’s been a lot of talk in recent months about the end of the de-leveraging cycle in the USA.  Richard Koo, who coined the term “balance sheet recession” to describe the de-leveraging cycle, isn’t buying it.  In his latest note he describes why the USA has years left to go.  He says:

“If people who had been paying down debt to repair their balance sheets had actually resumed borrowing, it would mean that balance sheet problems were behind us. However, the fact that the latest colored bar in Figure 1 is above zero indicates that US households are still paying down debt.

Inasmuch as this act of reducing financial liabilities in spite of zero interest rates runs counter to the principle of maximizing profits, it suggests that US households continue to undertake balance sheet adjustments.”

See the accompanying chart via FT Alphaville for details here.

I think Koo’s view is confirmed by the NY Fed’s latest data on quarterly household debt trends.  They showed another quarter of de-leveraging.   But the balance sheet recession isn’t an event.  It’s a process.  And the process is very clearly moving in the right direction.  For instance, see the improvement in consumer borrowing year over year:

fredgraph Koo: The Balance Sheet Recession is NOT Over....

We’re obviously digging out of a deep hole there…”

Full article 

Comments »

Super Bowl Indicator Aligns With January Barometer

“(MoneyWatch) Call your broker, go online, but however you do it, buy stocks today! Why? Because two of the most famous predictors of stock market performance both point toward buying stocks now.

Super Bowl indicator

One of the best known market indicators is that stocks skyrocket if the Super Bowl winner was once part of the old National Football League. Even though the big game isn’t until February 3, I’m going to go out on a limb and predict this will happen. That’s because both the Baltimore Ravens and San Francisco 49ers were members of the old National Football League.

According to Snopes.com, the indicator has correctly predicted the stock market about 80% of the time. That’s a pretty good track record and I admit I’d increase my allocation to stocks if I knew the market had an 80% chance for an up year. But I want more!



January Barometer

Stock market forecasters on Wall Street place a great deal of emphasis on stock performance in the month of January, as it is perceived as setting the pace for stock performance for the rest of the year.

So if stocks surge in the month of January, it apparently increases the odds that the market will be up at the end of the year. This phenomenon is termed the January Barometer by Stock Trader’s Almanac, and sports a pretty impressive accuracy rate of almost 90%.

While January isn’t over yet, the odds of a favorable barometric reading are pretty darn good. The S&P 500 index is up 4.8% through January 24.

If I put both of these so-called powerful predictors together, the math indicates that there is only a 2 percent chance of a declining stock market in 2013. That translates to a 98 percent probability of an up stock market. You’ve got to like those odds!

Back to reality

Before jumping into stocks, however, let’s go over a little lesson on statistics….”

Full article

Comments »