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Monthly Archives: February 2013

BoE Expects to Battle Another Round of Inflation and Weak Growth

“Bank of England Governor Mervyn King said Britain faces a further bout of inflation and a muted economic recovery, and pledged officials will look through the volatility in prices to keep nurturing growth where they can.

Inflation is likely to rise further in the near term and may remain above the 2 percent target for the next two years,” King said as he presented the central bank’s Inflation Report in London today. “The MPC’s remit is to deliver price stability in the medium term in a way that avoids undesirable volatility in output in the short run. The prospect of a further prolonged period of above-target inflation must therefore be considered alongside the weakness of the real economy.”

The pound fell as King spoke on the dilemma of a weak recovery and above-target inflation that has plagued the Monetary Policy Committee for more than three years and is set to overshadow the last few months of his tenure. The BOE said today it sees inflation at about 2.3 percent at the end of its two-year forecast period, and a “slow and sustained” recovery.

“If necessary, we will do more,” King told reporters today. “We must recognize, however, that there are limits to what can be achieved via general monetary stimulus — in any form — on its own.”

The pound was down almost 0.6 percent against the dollar at $1.5570 as of 12:02 p.m. in London.

Inflation Outlook

In its Inflation Report, the BOE said the outlook for consumer-price growth is higher than forecast in November because of the weaker pound and increases in energy bills. It also warned that weak productivity is boosting domestic cost pressures….”

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Slovenian Rating Cut to A- by S&P on Banking Bailout

“Slovenia’s credit rating was cut to A- as the government’s announced support for state-owned banks will lead to higher-than-previously forecast debt, Standard & Poor’s said.

The rating was reduced from A, S&P said in a statement late yesterday. The outlook on the nation’s long-term rating is stable. The A- assessment is on a par with Poland and Malaysia.

“The downgrade reflects Slovenia’s higher-than-anticipated debt burden, due to its announced support of its state-owned banks,” S&P said in the statement. “We also observe rising policy-implementation risks to resolving economic and fiscal pressures.”

Slovenia, on the brink of becoming the sixth euro member to ask for a bailout, has drafted a 4 billion-euro ($5.4 billion) bank recapitalization plan that would take up bad loans from ailing lenders. The proposal may be derailed by early elections as a political crisis deepens over corruption allegations against Prime Minister Janez Jansa.

The yield on the nation’s dollar-denominated debt maturing in 2022 dropped 9 basis points from yesterday to 5.049 percent at 12:33 p.m. in Ljubljana, according to data compiled by Bloomberg.

Debt Increase…”

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The Nikkei Falls on G-7 Comments

“Japanese stocks fell, with the Topix Index erasing yesterday’s advance, as the yen climbed after Group of Seven officials gave conflicting signals about the currency’s volatility. Gree Inc. plunged after cutting its profit forecast.

Toyota Motor Corp., the world’s biggest auto manufacturer, lost 1.8 percent. Gree slumped 15 percent after reducing its outlook on delays to new social-networking games. Pioneer Corp., a maker of audio equipment, plunged 11 percent after forecasting a loss. Daikin Industries Ltd. lost 6.1 percent as the maker of air conditioners was cut to underperform from outperform at CLSA after net income fell.

The Nikkei 225 Stock Average slid 1 percent to close at 11,251.41 in Tokyo, with trading volume 10 percent above the 30- day average. The broader Topix fell 1.2 percent to 957.02, with more than six stocks dropping for each that gained, eliminating yesterday’s 1.2 percent gain.

“The market has been at a high level and investors want to sell shares to lock in profit,” saidKazuyuki Terao, Tokyo- based chief investment officer of Allianz Global Investors Japan Co., part of Allianz Global Investors which oversees about 302 billion euros ($406 billion). “When you look at earnings results, you see many companies doing not so well regardless of a weaker yen.”

The Topix surged about 32 percent since elections were announced on Nov. 14 amid optimism a new government will take aggressive steps to weaken the yen and beat deflation. The gauge is trading at 1.1 times book value, compared with 2.1 for the Standard & Poor’s 500 Index and 1.5 for the Stoxx Europe 600 Index.

Japan GDP…”

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Cnooc Gets Approved to Purchase Nexen for $1.5 Billion

Cnooc Ltd., China’s biggest offshore oil and natural gas producer, won approval to acquire the U.S. assets of Nexen Inc., its last regulatory hurdle in the $15.1 billion purchase of the Canadian energy company.

The Committee on Foreign Investment in the U.S. approved the deal, now expected to close the week of Feb. 25, Nexen said in a statement yesterday. The panel reviews takeovers by foreign-owned companies for national security implications. Cnooc’s acquisition of the Calgary-based company falls under U.S. jurisdiction because of Nexen’s Gulf of Mexico oil and gas operations, which account for about 8 percent of its output.

Cnooc’s acquisition, the biggest overseas purchase by a Chinese company, prompted changes in the way Canada reviews takeovers of oil sands operators by state-controlled companies. The Canadian government approved the deal in December, announcing at the same time that it would prohibit future state- owned acquisitions in the oil sands barring “exceptional circumstances.”

Investors have been betting on U.S. approval, Sam La Bell, an analyst at Veritas Investment Research in Toronto, said in a Feb. 11 phone interview. Nexen rose 2 percent to C$27.48 in Toronto yesterday, the highest price since June 2009. In U.S. trading, Nexen climbed to $27.43, 7 cents less than Cnooc’s offer of $27.50 a share. Markets in Hong Kong and China were closed today for holidays.

North Sea…”

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The Yen Loses Steam on BoE Comments

“The yen approached the weakest level since May 2010 against the dollar after Bank of England Governor Mervyn King said currencies should be allowed to fluctuate based on monetary-stimulus measures.

The yen fell versus all except one of its 16 major counterparts as King’s comments allayed concern the Group of 20 meeting this week would criticize Japan for introducing stimulus measures that tend to weaken its currency. The pound slumped after the Bank of England said risks to the U.K.’s economic recovery were weighted to the downside. Sweden’s krona rallied after the central bank kept interest rates unchanged. The euro rose after a report showed industrial production increased.

“King is pointing out that if there is an impact on foreign-exchange rates from policy moves designed to support growth, then so be it,” said Jane Foley, a senior currency strategist at Rabobank International in London. “The yen is weakening today. King, it seems, did not want to point the finger at Japan.”

The yen depreciated 0.2 percent to 93.70 per dollar as of 7:05 a.m. in New York after sliding to 94.46 on Feb. 11, the weakest level since May 5, 2010. Japan’s currency declined 0.5 percent to 126.43 per euro after reaching 127.71 on Feb. 6, the least since April 2010. The euro rose 0.3 percent to $1.3490.

Japan’s currency has tumbled 18 percent in the past three months, the worst performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar declined 1.7 percent and the euro rose 5.1 percent.

“When countries take measures to use monetary stimulus to support growth in their economy, then there will be exchange- rate consequences and they should be allowed to flow through,” King said at a press conference in London. “It’s very important to allow exchange rates to move.”

Position Challenged…”

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The Aussie Dollar Rises as Good Consumer Confidence Data Sways Expectations of Rate Cuts

“Australia’s dollar rose against most major peers after a gauge of consumer confidence in the nation surged to a two-year high, easing expectations the central bank will cut interest rates.

The so-called Aussie extended a rebound from the lowest in four months as swaps traders reduced bets that the Reserve Bank of Australia will lower the overnight cash-rate target from 3 percent in March. The value of New Zealand’s dollar relative to its major trading partners climbed to a 5 1/2-year high as the nation’s Finance Minister Bill English said he won’t spend taxpayer money on intervention.

“The odds of a RBA rate cut in March have now slipped a little bit” after the release of the consumer-confidence survey, said Jonathan Cavenagh, a currency strategist in Singapore at Westpac Banking Corp., Australia’s second-largest lender by market value. “The near-term risks are that it can head higher,” he said, referring to the Australian dollar.

Australia’s currency gained 0.4 percent to $1.0343 as of 4:52 p.m. in Sydney after touching $1.0227 yesterday, the lowest since Oct. 15. The New Zealand dollar, known as the kiwi, added 0.2 percent to 84.17 U.S cents following a 0.6 percent advance.

Westpac and Melbourne Institute said today that their gauge for Australian consumer confidence jumped 7.7 percent in February to the highest level since December 2010.

Traders see a 41 percent chance that the RBA will cut the benchmark rate to 2.75 percent next month, according to data on overnight-index swaps compiled by Bloomberg. There was a 51 percent probability yesterday….”

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Kitaro

[youtube://http://www.youtube.com/watch?v=N8jsVXUoNIc 450 300]

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$BWLD Beats Revenue Estimates, Misses on EPS

“Shares of Buffalo Wild Wings (BWLD) are down $3.65, or almost 5%, at $77.42 after the company this afternoon reported Q4 revenue that topped consensus but missed on the bottom line, citing rising costs.

Revenue in the three months ended in December rose 38%, year over year, to $303.8 million, yielding EPS of 90 cents.

Analysts had been modeling $293 million and 96 cents.

CEO Sally Smith noted the 38% rise in revenue and same-store sales growth of 5.8% at its owned restaurants, but added that “High cost of sales continued in the fourth quarter, offsetting some of the bottom-line benefit of the fourteenth week, resulting in net earnings growth of 22.3% for the fourth quarter and 13.6% for the year.”

For this year, the company sees net earnings growth of 25%. Smith said same-store sales are difficult to compare in the current quarter because of the off-set with last year in the sporting event calendar…”

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$CLF Cuts Dividend by 76% After Reporting a Loss of $11.36 Per Share Loss for Q4

 

Cliffs Natural Resources Inc., the biggest U.S. iron ore producer, cut its quarterly dividend by 76 percent after the price of the commodity declined and a Canadian mining project was delayed.

It reduced the payout to 15 cents a share, the Cleveland- based company said today in a statement. In March, the company raised the dividend to 62.5 cents from 28 cents and said it would shift its strategic focus from mergers and acquisitions to organic growth while returning capital to shareholders.

“The year proved to be challenging both from a market perspective and operationally,” Chairman and Chief Executive Joseph Carrabba said in the statement. “Our ramp-up of Bloom Lake mine has been slower than originally anticipated, resulting in decreased volumes and increased costs.”

Cliffs fell 8 percent to $33.76 at 4:41 p.m. after the close of regular trading in New York.

Cliffs reported a fourth-quarter loss of $1.62 billion, or $11.36 a share, compared with a net income of $185.4 million, or $1.30, a year earlier. Earnings excluding a $1 billion writedown of assets and other one-time items were 62 cents, beating the 51-cent average of 20 analysts’ estimates compiled by Bloomberg.

Sales fell 4.2 percent to $1.54 billion, trailing the $1.53 billion average of 14 estimates…..”

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$WLP Names Joseph Swedish as the New CEO

“WellPoint Inc. named Joseph R. Swedish as its new chief executive, unexpectedly turning to a hospital-industry veteran to lead the second-largest U.S. health insurer through the challenging implementation of the health-care overhaul.

Mr. Swedish, 61 years old, will take over as CEO on March 25, the company said. Since 2004, he has been chief executive and president of Trinity Health, a Catholic operator of 47 hospitals with revenue of around $9 billion last year.

The choice is likely to surprise investors, whose displeasure with previous WellPoint CEO Angela Braly helped lead to her resignation last August. Mr. Swedish’s career has been spent on the provider side of health care, and recently at nonprofit institutions, so he is not a familiar face for managed-care investors.

In an interview, Mr. Swedish signaled that he’s unlikely to radically change WellPoint’s current direction under interim CEO John Cannon. “I’m inheriting a springboard” that will propel the company forward, he said. “This organization has an expert leadership team.” Mr. Swedish also said his background will help him forge closer ties with health-care providers in efforts to share data and improve care and efficiency.

Under Ms. Braly, WellPoint suffered through a series of missteps, including earnings misses; a proposed premium increase in California that became a lightning rod in the health-overhaul debate and was later scaled back; and a public tiff with the Obama administration. Investor concerns crystallized after a disappointing second-quarter earnings report and guidance downgrade last July….”

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BREAKING: Shoot Out at the Big Bear Coral, Ex Cop Turned Cop Killer Cornered

CBS Los Angeles reported.

 

Two deputies were also shot and wounded, CBS reported.

Dorner, who allegedly killed a police officer and two civilians, reportedly hijacked a white pickup truck before the shootout began.

He’s been on the run since allegedly killing the daughter of a former LAPD captain and her fiance in addition to one police officer. In a creepy manifesto, Dorner told the world he was waging war on the LAPD, which fired him back in 2009.

A CBS reporter said there was active gunfire, and that reporters were ducking for cover. “Everybody is on high alert, including us,” a CBS reporter said.

Dorner was found in a cabin in a “remote, campground area” out in the Santa Ana River Trailhead, CBS reported.

The shooting happened after Dorner burglarized a home, the LA Times reported, citing a law enforcement official.

Law enforcement officers were surrounding the area, according to the Times.

There were also reports that a white pickup truck in the Big Bear area was carjacked around 12:30 local time, according to KTLA, which cited the San Bernardino police department.

This is a developing story. Stay tuned for updates.

This news video can give you an idea of the chaos surrounding the shootout:
Live update

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$CMCSA to Buy $GE’s Remaining Stake in NBC Universal

WASHINGTON (MarketWatch) — General Electric GE +3.81% said it’s selling the remaining 49% stake it holds in NBC Universal to Comcast CMCSA +7.90% CMCSK +0.89% for $16.7 billion, and also is selling related real estate for $1.4 billion. GE said it’s increased GE’s share repurchase authority to $35 billion, with approximately $23 billion of authorization remaining as of today. GE plans to accelerate its share repurchase program to approximately $10 billion in 2013. GE expects the pre-tax gain from the sale of its remaining NBC Universal interest of approximately $1 billion to be offset by restructuring in 2013. “Our decision to acquire GE’s ownership is driven by our sense of optimism for the future prospects of NBCUniversal and our desire to capture future value that we hope to create for our shareholders,” said Brian L. Roberts, chairman and CEO of Comcast, in a statement. ”

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Shakers and Movers in A.H.

 

Symbol Company Name Last Change Volume
SIRI Sirius XM Radio Inc. 3.19 +0.01 +0.28% 1,342,755
SPY SPDR S&P 500 ETF Trust 152.07 +0.05 +0.03% 599,912
BAC Bank of America Corp. 12.25 +0.01 +0.04% 515,482
DELL Dell Inc. 13.77 -0.02 -0.15% 386,104
HCA HCA Holdings Inc. 36.45 UNCH UNCH 319,380
EEM iShares Inc. MSCI Emer … 43.96 +0.01 +0.02% 276,829
EXC Exelon Corp. 31.95 UNCH UNCH 253,501
AGO Assured Guaranty Ltd. 19.01 -0.04 -0.21% 245,354
FB Facebook Inc. Cl A 27.39 +0.02 +0.07% 241,085
NVDQ Novadaq Technologies Inc. 9.30 -0.09 -0.96% 223,000
GPOR Gulfport Energy Corp. 39.62 -0.07 -0.18% 174,176
XLF Select Sector SPDR-Fin … 17.81 -0.01 -0.03% 159,500
IWM iShares Russell 2000 I … 91.11 +0.01 +0.01% 158,802
QQQ PowerShares QQQ Trust … 67.76 +0.03 +0.04% 120,221
NUAN Nuance Communications … 18.91 UNCH UNCH 111,621
ARIA Ariad Pharmaceuticals … 19.92 UNCH UNCH 106,269
NVS Novartis AG ADS 68.51 UNCH UNCH 100,000
THRX Theravance Inc. 21.60 UNCH UNCH 99,900
EVEP EV Energy Partners L.P. 56.00 +0.50 +0.90% 95,800
CSCO Cisco Systems Inc. 20.99 +0.02 +0.10% 77,724
LVS Las Vegas Sands Corp. 53.70 UNCH UNCH 76,114
NWSA News Corp. Cl A 28.34 UNCH UNCH 75,169
ORCL Oracle Corp. 35.17 +0.06 +0.17% 73,321
NLY Annaly Capital Managem … 15.09 UNCH UNCH 70,787
VXX Barclays Bank PLC iPat … 22.33 -0.04 -0.18% 68,315

More stocks for junkies

Today’s Most Active 

Most Active Share Volume

As of 2/12/2013 4:00:00 PM

Company Last Sale* Change Net / % Share Volume
Zynga Inc.
$ 3.2499 0.42  11.45% 87,930,229

FB

Facebook, Inc.
$ 27.31 0.95  3.36% 77,198,893
Sirius XM Radio Inc.
$ 3.19 0.05  1.59% 56,341,927
Cisco Systems, Inc.
$ 20.96 0.31  1.46% 43,899,607
Research In Motion Limited
$ 15.19 0.54  3.43% 43,407,026

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$RAX Tanks in A.H. After Posting Earnings

“For the quarter ended December 31, 2012:

  • Net revenue of $353 million grew 25% year-over-year and 5.0% from Q3 2012
  • Adjusted EBITDA(1) of $130 million grew 27% year-over-year and 6.6% from Q3 2012
  • Achieved adjusted EBITDA margin of 36.8%, up from 36.1% year-over-year and 36.2% in Q3 2012
  • Net income of $30 million grew 19% year-over-year and 10.0% from Q3 2012

Rackspace® Hosting, Inc. (RAX), the open cloud company, announced financial results for the quarter ended December 31, 2012.

Net revenue for the fourth quarter of 2012 was $353 million, up 5.0% from the previous quarter and 25% from the fourth quarter of 2011. Net revenue for the fourth quarter of 2012 was positively impacted by currency exchange rates when compared to the fourth quarter of 2011 by $1.8 million and positively impacted when compared to the previous quarter by $1.4 million.

Total server count increased to 90,524, up from 89,051 servers at the end of the previous quarter, and total customers increased to 205,538, up from 197,635 at the end of the previous quarter.

“We are very pleased with the financial results we have delivered in 2012. Even more importantly, we are excited about the growth opportunities that our new set of open cloud products will provide us in the future,” said Karl Pichler, chief financial officer.

Adjusted EBITDA for the quarter was $130 million, a 6.6% increase compared to the third quarter of 2012 and a 27% increase compared to the fourth quarter of 2011. The adjusted EBITDA margin for the quarter was 36.8% compared to 36.2% in the previous quarter and 36.1% for the fourth quarter of 2011.

Consistent with prior periods, adjusted EBITDA and adjusted EBITDA margin were negatively impacted by a non-cash charge relating to data center operating leases. During the fourth quarter of 2012, the non-cash data center lease charge was $2.9 million.

Net income was $30 million for the quarter, up 10.0% from the previous quarter and up 19% from the fourth quarter of 2011. Net income margin for the quarter was 8.5% compared to 8.1% for the previous quarter and 8.8% in the fourth quarter of 2011…”

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Australian Study Shows Wind Energy Now Cheaper than Coal or Gas

Source 

Fossil fuels may have met their match in Australia, where wind power has demonstrated itself to be a cheaper source of energy.

New wind farms can supply electricity at a cost of AU$80 per megawatt hour (MWh), compared to AU$143/MWh for new coal-fired power plants and AU$116/MWh for new gas-fired generation, according to research by Bloomberg New Energy Finance.

The calculations included the cost of carbon emissions. But even without a carbon price, wind energy still was 14% cheaper than new coal plants and 18% cheaper than new gas plants.

“The perception that fossil fuels are cheap and renewables are expensive is now out of date,” Michael Liebreich, chief executive of Bloomberg New Energy Finance, told Renew Economy.

“The fact that wind power is now cheaper than coal and gas in a country with some of the world’s best fossil fuel resources shows that clean energy is a game changer which promises to turn the economics of power systems on its head,” Liebreich added.

Thom Hartman noted at The Smirking Chimp that Australia relies more on coal than any other industrialized nation in the world. “But that coal reliance will soon change, as companies in Australia are quickly adopting new, cheaper renewable energies. As the study found, banks and lending institutions in Australia are now less and less likely to finance new coal plants, because they’ve simply become a bad investment,” he wrote.”

 

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