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Monthly Archives: February 2013

Australia Issues a Soft Outlook on Growth Due to Inflation and a Stronger Currency, Expected Easing Pushes the Aussie Dollar Higher

“The Reserve Bank of Australia reduced its economic growth and inflation forecasts as investment outside the mining industry remains elusive, the labor market softens and a high local currency contains prices.

“The soft outlook over the next year or so reflects a number of factors,” the RBA said in its quarterly monetary policy statement released in Sydney today. “Mining investment is expected to peak, both fiscal consolidation and the persistently high level of the Australian dollar will weigh on growth, and there is little sign of a near-term pick-up in non- mining business investment.”

The RBA noted that the global outlook has been “more positive in recent months” and China’s economy has stabilized. The RBA predicted “below trend” 2013 growth of about 2.5 percent, compared with around 2.75 percent forecast in November. Consumer prices will rise 3 percent in the year to June 2013, compared with the 3.25 percent increase it had forecast three months earlier, the central bank said.

Governor Glenn Stevens and his board reduced the overnight cash-rate target to 3 percent in December, matching a half- century low, as they try to revive industries including construction to rebalance economic growth and extend 21 recession-free years. The restrained outlook for prices gives scope for further rate cuts if needed to boost demand, the RBA reiterated in today’s statement after it paused this month.

‘Two Halves’….”

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China’s Import/Exports Gain More Than Expected

 

“China’s trade expanded more than estimated and a broad measure of credit rose to a record in a January that had five more working days than last year, helping sustain a rebound in the world’s second-biggest economy.

Exports gained 25 percent from a year earlier and imports rose 28.8 percent, government data showed today. Aggregate financing was 2.54 trillion yuan ($407 billion), including new local-currency loans of 1.07 trillion yuan that exceeded forecasts, while inflation was 2 percent.

China’s trade and credit data may indicate a strengthening economy, even as indicators in the first two months are distorted by the weeklong Lunar New Year holiday that was in January in 2012 and starts tomorrow for 2013. The new leadership, headed by Xi Jinping, is seeking to sustain a recovery without fueling inflation or spurring excessive financial risks from shadow banking and local-government debt.

“China’s growth recovery remains on track and inflation pressures remain manageable,” said Chang Jian, a Hong Kong- based economist at Barclays Plc who formerly worked for the World Bank. That is likely to add to “recent positive market sentiment,” she said.

The Shanghai Composite Index, China’s benchmark stock gauge, rose 0.6 percent. It has gained 24 percent since Dec. 3. The MSCI Asia Pacific Index of stocks fell 0.1 percent as of 6:01 p.m. in Tokyo.

M2 money supply rose 15.9 percent in January from a year earlier, the People’s Bank of China said today, exceeding the 14 percent median estimate in a Bloomberg survey of economists.

Trade Surplus…”

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Rap News: The Great Gun Debate

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

Link for iPhone users: http://www.youtube.com/watch?v=cxHvHi-MdIM

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REALLY? Fox News Credibility at Record Low

“No longer ‘fair and balanced’? Americans have been losing faith in Fox News as the networks’ credibility has been steadily dwindling, falling by 9 percent in three years.

Fox News’ credibility rating has hit a four-year record-low, with the majority of Americans distrusting the conservative-leaning channel. New Public Policy Polling (PPP) results show that 46 percent of voters distrust the network, while only 41 percent of voters perceive its information as reliable.

Other networks included in the poll are MSNBC, CNN, PBS, Comedy Central, ABC News, CBS News, and NBC News. Polling data indicates that Democrats overwhelmingly trust every station except Fox News, while the majority of Republicans trust no other network except for Fox – thereby also causing the network to be highly “trusted”.

But even though Fox remains one of the GOP’s primary sources of news, its credibility has drastically declined. Even the network’s monthly cable news ratings have been going south. Fox News in January suffered its worst prime time rating in the 25-54 year demographic since 2001 and its lowest total day ratings since 2008.

Some believe the network’s decline in credibility can partially be attributed to its coverage of the 2012 presidential election. Fox’s coverage largely predicted a landslide victory for Republican nominee Mitt Romney, who didn’t even come close to winning the election. After the election, many of the network’s viewers felt deceived by the coverage.

Additionally, Fox News featured Dick Morris, a former pollster and advisor to Bill Clinton who redefined himself as a Republican analyst and operator. Using his fame and publicity, he solicited money for his super PAC and may have contributed to the channel’s credibility loss.

“In the end, it became too obvious that Dick Morris wasn’t working for the betterment of the conservative movement, or the Republican Party, or Fox News,” wrote The American Prospect’s Paul Waldman. “He was working for the betterment of Dick Morris.”

Fox fired Morris this week, right as the poll results about the channel’s credibility were released….”

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Will Dems Sell You Out ?

 

Source

“In addition to banks and retailers selling off Americans’ personal data, the Democratic Party is also planning to make a buck off individuals who have shared their information.

The process began in 2011, when state Democratic party leaders formed the National Voter File Co-op to sell their voter data to certain nonprofit groups in order to recover some of the money spent collecting and updating local voter lists.

Now, however, Democrats may sell their databases to credit card companies and chain stores, such as Target.

“Much of the data the co-op sells comes from the government and is already part of the public record—information such as voters’ names, addresses and party affiliation,” writes Lois Beckett of ProPublica.

But other information for sale would include voters’ views and preferences that could be helpful to businesses looking for new marketing opportunities.

Democrats claim the sell-off would be legal, according Karl Sandstrom, a former vice-chairman of the Federal Election Commissionand an attorney for the co-op.”

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Currency War Fun, 1930’s Gangnam Style

“As countries try to weaken their currencies to boost exports, the risk of a currency war similar to events seen in the 1930s has heightened, and policymakers are making sure they are on the winning side, according to Morgan Stanley.

The balance of power now rests with Japan, according to the bank, as Japan’s policy-makers’ more dovish approach looks set to bring the world a step closer to a currency war.

The Bank of Japan doubled its inflation target to 2 percent in January and made an open-ended commitment to continue buying assets from next year. This follows a leadership change, with new Prime Minister Shinzo Abe openly calling for aggressive monetary stimulus from the country’s central bank.

(Read MoreLand of the Falling Yen: Japan Cheers Sliding Currency)

This move, Morgan Stanley said, is a “game changer” as Japan tries to invigorate its stagnating economy .

“If a weaker yen is an important pillar of the strategy to make this export-oriented economy more competitive again, it brings into the picture something that was missing from earlier interactions among central banks of the advanced economies – competitive depreciation,” it said in a research note.

“This, in turn, takes us one step closer to a currency war.” ..”

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Ex L.A. Police Officer Goes on a Shooting Rampage

“A massive manhunt was underway Thursday morning for an ex-Los Angeles Police Department officer suspected of shooting three police officers early Thursday, one fatally. He is also a suspect in the shooting of a couple in Irvine over the weekend.

The suspect is believed to have written an online manifesto on what authorities say is his Facebook page, threatening to harm police officials and their families, law enforcement sources said.

PHOTOS: Manhunt for ex-LAPD officer

The three shootings early Thursday morning occurred in Riverside County.

One LAPD officer was grazed in the Corona area, law enforcement sources said. Then sometime later, two Riverside Police Department officers were shot in Riverside. One of those officers died, sources said. That shooting occurred at Magnolia and Arlington avenues. The officers were taken to Riverside Community Hospital…..”

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Bush Family Photos Released by Daring Hacker

“FEBRUARY 7–The apparent hack of several e-mail accounts has exposed personal photos and sensitive correspondence from members of the Bush family, including both former U.S. presidents, The Smoking Gun has learned.

The photos and e-mails were uploaded yesterday to an online account that appears to have been hacked for the purpose of hosting the material.

In e-mail exchanges with the person who claimed responsibility for the hack, the individual claimed to have swiped “a lot of stuff,” including “interesting mails” about George H.W. Bush’s recent hospitalization, “Bush 43,” and other Bush family members.

Included in the hacked material is a confidential October 2012 list of home addresses, cell phone numbers, and e-mails for dozens of Bush family members, including both former presidents, their siblings, and their children. The posted photos and e-mails contain a watermark with the hacker’s online alias, “Guccifer.”..”

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$AAPL Issues Response to David Einhorn’s Suggestions

“$AAPL has issued a statement on its massive pile of cash.

The press release is a response to David Einhorn, who earlier today outlined a proposal for Apple to issue preferred stock as a way of leveraging its cash. In Einhorn’s proposal, he urged Apple investors to vote NO on an Apple proposal to prevent the issuance of preferred stock.

Apple’s cash is a source of consternation to many investors, who feel that Apple is hoarding its pile, and that the market isn’t properly valuing all that cash.

In Apple’s release the company says: We’ll evaluate Greenlight Capital’s proposal (Editors note: ha!) and nothing in the Apple proxy would foreclose the possibility of doing what Greenlight wanted. The release notes that management and the board of directors are in discussions about ways to return more cash to shareholders. The Greenlight proposal will be considered as part of that overall discussion.

Below the dotted line is the full release.

———————————————————————————

By early last year, Apple’s cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.

We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.

Apple’s management team and Board of Directors have been in active discussions…”

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Fed’s Stein: Signs of Excessive Risk-Taking in Some Credit Markets

“Federal Reserve Governor Jeremy Stein said some credit markets, such as corporate debt, are showing signs of potentially excessive risk-taking, while not posing a threat to financial stability.

“We are seeing a fairly significant pattern of reaching-for-yield behavior emerging in corporate credit,” Stein said Thursday in a speech in St. Louis.

Central bank officials, including Kansas City Fed President Esther George, are voicing increased concern that record-low interest rates are overheating markets for assets from farmland to junk bonds. Stein today cited leveraged loans and the junk bonds as areas that have been “very robust of late.”

The Fed should be open to using policy tools such as interest rates to safeguard stability, Stein said, while not suggesting the central bank take any such action now.

“I can imagine situations where it might make sense to enlist monetary policy tools in the pursuit of financial stability,” he said. “It will be important to keep an open mind” on using such tools, said Stein, a former Harvard University economist who specializes in banking and finance.

Chairman Ben S. Bernanke has argued for a clear separation between oversight and interest rate policy, saying regulation should be used to deal with asset-price bubbles. Last month he said he considers supervisory tools “the first line of defense” against such bubbles.

‘Not Enough’ …”

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Revolving Credit Soars by $18.2 billion in December

“If anyone was hoping that in the peak holiday month of December the US consumer would finally open up the purse strings and “charge” everything, we have bad news: in the last month of 2012 revolving consumer credit dipped by some $3.6 billion, a reversion of the modest increases seen in November and October, and the biggest decline in credit card debt since July of 2012. Yet overall consumer credit rose by some $14.6 billion and beat expectations of a $14 billion increase. Why? Because as we have been warning for quite a while, everyone is now piling into student debt (and NINJA Uncle Sam subprime car loans). Sure enough, non-revolving credit soared by $18.2 billion in December – a monthly record for this time series since its revision several months back – and shows that when it comes to levering up, few are using their credit cards, as increasingly more opt to rotate proceeds from their “student loans” into everyday purchases.

And so we end 2012 with a total increase in consumer credit of $146.7 billion of which student loans account for… $148.3 billion…”

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FRANCE’S REVENGE: ‘BEEF’ Lasagna Sold in the UK Was 100% HORSEMEAT

Findus has tonight admitted that it has been selling packs of its popular frozen lasagne that were 100 per cent horsemeat.

The news is the first time that it has been confirmed that horsemeat contamination of products sold in the UK has spread beyond beef burgers.

There are concerns that the horse meat used in the lasagne contained the drug bute, which is a known human health risk.

Findus was today unable to say how long horsemeat has been used in its products.

The lasagne packs were manufactured by French company, Comigel, at a plant in Metz, which produces food for supermarkets in Britain and Europe.

Comigel makes a range of beef products for Tesco and Aldi, which have both removed them from shelves as a precautionary measure.

Tesco removed its packs of frozen Everyday Value Spaghetti Bolognese, whiles Aldi has withdrawn its Today’s Special Frozen Beef Lasagne and Today’s Special Frozen Spaghetti Bolognese.

Tests are being carried out on these products, however there is no evidence – to date – that they contain horse meat.

Findus asked supermarkets and corner shops to remove three sizes of beef lasagne – 320g, 360g and 500g – from shelves on Monday.

At the time, it said this was because of what it called a ‘labelling issue’ in what appears to have been a crude attempt to pull the wool over customers’ eyes.

In fact, it has now emerged that these products contained horse meat, which constitutes a crime under labelling laws and will alarm the public.

The revelation raises further questions about whether major food brands have any good idea about what is being put into their products.

Findus said: ‘At Findus UK we are committed to our customers and the quality of our products.

‘Following a thorough investigation, Findus UK can confirm that testing of its beef lasagne, produced by a third party supplier and not by Findus, has revealed some product containing horse meat.

‘As a precautionary measure, on Monday we coordinated a full withdrawal of our affected beef lasagne.

‘We understand this it is a very sensitive subject for consumers and we would like to reassure you we have reacted immediately. We do not believe this to be a food safety issue.’

Labour’s Shadow Food and Farming Secretary, Mary Creagh, described the handling of the scandal by the Government as ‘appalling’.

She said the horse meat found in the Findus products has not been tested for the presence of the drug bute, which is a known human health risk.

‘This drug is banned from the human food chain because it can cause aplastic anaemia, which is a type of leukaemia,’ she said.

‘Ministers have been hiding under their desks, rather than getting to grips with this.

‘We have a real crisis of confidence in the meat industry, people do not feel they can trust what it says on the label. This is potentially a disaster for UK supermarkets, manufacturers and farmers.

‘The government’s handling of this has been appalling. Unless they come out on the front foot and show leadership, we won’t have a meat processing industry left.’

The Food Standards Agency(FSA) said the level of horsemeat found in the Findus products ranged from 60 to 100 per cent. It said tests will be carried out for the presence of bute.

A spokesman said: ‘We have no evidence to suggest that this is a food safety risk. However, the FSA has ordered Findus to test the lasagne for the veterinary drug phenylbutazone, or ‘bute’. Animals treated with phenylbutazone are not allowed to enter the food chain as it may pose a risk to human health.

‘The Findus beef lasagne was distributed to the main UK supermarkets and smaller convenience stores. Findus has already begun a full recall of these products.

‘People who have bought any Findus beef lasagne products are advised not to eat them and return them to the shop they bought them from.’

Last night the Food Standards Agency is now demanding a massive sweep of all beef products for the presence of horse meat.

Chief executive, Catherine Brown, said: ‘Following our investigations into Findus products, the FSA is now requiring a more robust response from the food industry in order to demonstrate that the food it sells and serves is what it says it is on the label.

‘We are demanding that food businesses conduct authenticity tests on all beef products, such as beef burgers, meatballs and lasagne, and provide the results to the FSA. The tests will be for the presence of significant levels of horse meat.’

Bute was banned from use in humans after it was found that about one person in 30,000 recipients suffered a serious side effect. But in levels reported in previous FSA testing of contaminated meat, the maximum level found would have to be multiplied a thousand-fold to be at the same level as that which used to be given to humans.

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$YHOO Looks to Accelrate Revs Through $GOOG’s Ad Network

“Yahoo is counting on rival Google to help accelerate its revenue growth.

As part of a nonexclusive arrangement announced Wednesday, Yahoo’s website will begin drawing upon Google’s massive online advertising network to show marketing messages related to the content that’s being perused.

Google already distributes similar ads to thousands of websites, a service that has helped establish it as the Internet’s most prosperous company.

Yahoo has been struggling to attract more advertisers in recent years, even though more marketing budgets have been shifting to the Internet. The company’s revenue had fallen in three consecutive years before registering a small gain last year. Yahoo CEO Marissa Mayer, a longtime Google executive before being lured away nearly seven months ago, has pledged to produce more impressive growth in future years.

Google retains part of the revenue generated from the ads shown on its partners’ sites. The revenue split with Yahoo wasn’t specifically disclosed, but Google has previously said that website owners that display the kind of ads covered in this agreement usually get to keep 68 percent of the revenue.

Last year, Google’s ad sales on its partners’ sites totaled $12.5 billion. That amount includes ads shown next to the search results on other websites, a service it isn’t providing to Yahoo….”

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Fed’s Evans: Jobless Rate Won’t Fall to 6.5% Until Mid-2015

“The Federal Reserve has the appropriate policies in place right now and will remain accommodative until the economy improves, Chicago Fed President Charles Evans told CNBC in an interview on Thursday.

Evan said on “Squawk Box” he’s optimistic that the economy is improving, but the unemployment rate probably won’t get to 6.5 percent until mid-2015. The 6.5 percent target is what the Fed set as a goal for winding down its low interest rate policy. The latest jobless rate reading was 7.9 percent last month.

(Read MoreEconomy Adds Another 157,000 Jobs; Rate Up to 7.9%)

The Fed has not set any targets for how long it will keep going with quantitative easing (CNBC Explains), but Evans said the bond-buying program may need to continue for another six months to a year until “we’re clear the job market outlook has improved.” ”

Full article & video

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$LNKD Blows Street Estimates Away

Source

“LinkedIn reported adjusted earnings of 35 cents a share on revenue of $304 million for the fourth quarter.

Analysts had expected the social-media giant to report earnings excluding items of 19 cents a share on $280 million in revenue, according to a consensus estimate from Thomson Reuters.

What is LinkedIn stock doing now? (Click here to track the company’s shares following its earnings release.)

This is a breaking news story. Please check back on CNBC.com for updates to this article.”

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$CSTR Falls in A.H. After Missing Earnings and Guiding Lower

Source 

“Feb 7 (Reuters) – Coinstar Inc, the operator of Redbox video rental kiosks, reported a 28 percent drop in quarterly profit, sending its shares down 8 percent in extended trade.

The company’s net income fell to $22.8 million, or 75 cents per share, in the fourth quarter, from $31.5 million, or $1.00 per share, a year earlier.

Revenue rose 8.4 percent to $564.1 million.

The company’s shares closed at $52.10 on the Nasdaq on Thursday….”

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