In Play ,
Comments »Monthly Archives: February 2013
$CVX Profits Rise 42%
“NEW YORK (MarketWatch) – Chevron Corp.CVX -1.12% said fourth-quarter net profit rose to $7.25 billion, or $3.70 per diluted share, from $5.12 billion, or $2.58 per share a year earlier. The San Ramon, Calif.-based energy company said revenue fell to $56.3 billion from $58 billion. Analysts polled by FactSet had expected earnings of $3.06 a share. “Strong cash flows allowed us to invest aggressively in our major capital projects and to acquire several important, new resource opportunities,” said John Watson, chief executive officer.”
Comments »Nonfarm Payrolls: Prior 155k, Market Expects 180k, Actual 157k
Unemployment rate is 7.9%
Private sector adds 166k
Long term unemployment falls 1% at 4.7 m
Labor force participation rate is unch at 63.6%
Comments »
HBO Coming to $AAPL TV
“Apple is adding HBO Go to Apple TV by mid-2013, Bloomberg reports.
It will only be available to Time Warner subscribers who already pay for HBO. But those who have it will be able to watch more than 600 hours worth of movies and TV shows, according to Bloomberg’s sources.
HBO Go is already offered on Roku and Microsoft’s Xbox….”
Comments »At Least Two Dead After Suicide Bombing At US Embassy In Turkey
“At least two people are dead after a suicide bomber detonated a bomb at the entrance of the U.S. Embassy in the Turkish capital, according to a police official and reported by The Associated Press.
Sky News reports that the bomb appeared to have exploded inside the security checkpoint at a side entrance, killing two security guards….”
Read more
Former Mayor Ed Koch Dead at 88
$XOM Sees Profits Rise 6%
“Feb 1 (Reuters) – Exxon Mobil Corp, the world’s largest publicly traded oil company, on Friday reported a 6 percent increase in quarterly profit, partly due to higher refining margins.
The Irving, Texas company said profit in the fourth quarter was $9.95 billion, or $2.20 per share, compared with $9.4 billion, or $1.97 per share, in the same period a year earlier.
Oil and gas output fell 5.2 percent, Exxon said.”
Comments »Litigation Costs Take Profits Down to the $MAT
“EL SEGUNDO, Calif. (AP) — Barbie maker Mattel Inc.’s fourth-quarter net income fell 17 percent, weighed down by a litigation charge.
Its performance missed Wall Street’s expectations for the critical holiday period, and its shares fell almost 2 percent in premarket trading. It also raised its dividend.
The world’s largest toy maker earned $306.5 million, or 87 cents per share, for the three months ended Dec. 31. That compares with $370.6 million, or $1.07 per share, a year ago.
Removing the litigation charge, earnings were $1.12 per share. Analysts surveyed by FactSet expected $1.15 per share.
Revenue for the El Segundo, Calif.-based company rose 5 percent to $2.26 billion from $2.15 billion.Wall Street forecast $2.3 billion.
The November through December holiday period is key for toy makers because it can make up to 40 percent of their revenue during the time. Toy sellers have been under pressure as more kids clamor for electronic gadgets like tablets. In addition, toy sellers like Wal-Mart and others have been cautious ordering inventory.
Worldwide gross sales for the Mattel girls and boys brands climbed 5 percent in the quarter. The figure jumped 55 percent for its other girls brands, mostly because of its Monster High products. At American Girl, worldwide gross sales increased 13 percent. The figure rose 6 percent for Fisher Price.
Results were not as good for Barbie, which reported a 4 percent decline in worldwide gross sales. The Wheels segment, which includes Hot Wheels, Matchbox and the Tyco R/Co brands, posted a 1 percent dip primarily due to Matchbox…”
Comments »$MRK Beats by Two Cents, Guides on the Low End of Expectations
“(Reuters) – Merck & Co Inc’s quarterly results beat estimates, helped by strong sales of its Januvia diabetes drug and Gardasil vaccine against cervical cancer, but the company forecast 2013 profit at the low end of expectations.
Merck also said Friday it will not seek approval until next year for osteoporosis treatment odanacatib, a delay that Jefferies analyst Jeffrey Holford said “will disappoint many investors,” and hurt shares today.
The stock fell 1.5 percent to $42.60 before the market opened.
The No. 2 U.S. drugmaker said it earned $1.4 billion, or 46 cents per share, in the fourth quarter. That compared with $1.51 billion, or 49 cents per share, in the year-earlier period, when it took charges for acquisition and restructuring expenses.
Excluding special items, Merck earned 83 cents per share. Analysts, on average, expected 81 cents, according to Thomson Reuters I/B/E/S.
Global company sales fell 5 percent to $11.74 billion, hurt by generic competition for its Singulair asthma drug, but still topped Wall Street targets of $11.48 billion.
The company forecast 2013 earnings of $3.60 to $3.70 per share, excluding special items. The midpoint of that range is below analysts’ estimate of $3.68 per share. The company earned $3.82 per share in 2012….”
Comments »$GOOG Offers Up a Settlement in EU Antitrust Probe
“Google Inc. (GOOG) submitted an offer to European Union regulators in a bid to settle a probe into whether the world’s largest search engine operator discriminates against rivals, the EU’s antitrust chief said.
“It has arrived,” EU Competition Commissioner Joaquin Almunia told reporters in Brussels today. He said his officials would now study the proposal.
Almunia had asked Google to submit concessions by the end of January to address allegations that the company promotes its own specialist search-services, copies rivals’ travel and restaurant reviews, and has agreements with websites and software developers that stifle competition in the advertising industry. He first told Google in May that he wanted to settle the case.
Google sent a “detailed proposal,” said Antoine Colombani, a spokesman for Almunia. He said he couldn’t anticipate if the offer was sufficient to allay antitrust concerns or whether it would be sent to rivals and customers for comments. If this market test is successful, the EU can make the commitments legally binding. Such a settlement would avoid possible fines against the Mountain View, California-based company.
Google continues “to work co-operatively with the commission,” the company’s Brussels-based spokesman Al Verney said in an e-mailed statement.
U.S. Probe…”
Comments »U.K. Manufacturing Grows For a Scond Month in Sign of Industry Stabilization
“U.K. manufacturing expanded for a second month in January as orders rose and output surged the most since September 2011.
A gauge of factory activity was at 50.8, compared with a revised 51.2 in December, Markit Economics and the Chartered Institute of Purchasing and Supply said in London today. A reading above 50 indicates expansion. Separate reports today showed euro-area manufacturing shrank less than initially estimated last month, while Chinese manufacturing expanded.
Britain’s economy shrank by a more-than-forecast 0.3 percent in the fourth quarter and the Bank of England said last month that “substantial headwinds to recovery remained.” Still, Markit said the fact that its factory index remains above 50 is an encouraging start to 2013.
“On the surface this is good news for manufacturing and should be welcomed,” CIPS Chief Executive Officer David Noble said in the statement. “However, underlying factors suggest deep rooted problems remain.”
The median forecast of 29 economists in a Bloomberg News survey was for a decline to 51 in January from an initially reported 51.4. Markit said the increase in the output gauge reflected a “robust increase in consumer goods.” Domestic orders improved, countering a decline in export orders, and the labor market “continued to stabilize,” it said.
‘Offers Hope’ …”
Comments »$MET Buys Provida for $2B to Expand in Latin America
“MetLife Inc. (MET), the largest U.S. life insurer, agreed to buy Chilean pension manager AFP Provida SA (PROVIDA) from Banco Bilbao Vizcaya Argentaria SA (BBVA) in a deal valued at about $2 billion to add fee income in Latin America.
MetLife will conduct a public cash tender offer for all of the outstanding shares of Provida, the insurer said in a statement through the Business Wire. BBVA has agreed to transfer its 64.3 percent stake to MetLife, according to the statement.
MetLife is expanding in faster-growing markets with the Provida deal, after acquiring American Life Insurance Co. in 2010 to build operations in Asia and Europe. Chief Executive Officer Steven Kandarian has set a goal of generating at least 20 percent of operating earnings fromemerging markets by 2016 as he targets return on equity of 12 percent or more.
“It fits in well with many parts of their strategy,” Jimmy Bhullar, an analyst at JPMorgan Chase & Co., said in an interview before the deal was announced. “It seems like it’s a good business.”
Chile’s economy is projected to expand by 4.5 percent this year, compared to U.S. growth estimated at 2 percent, according to economists’ estimates compiled by Bloomberg. Low interest rates and slow economic growth have weighed on results at New York-based MetLife.
With the acquisition of Provida, MetLife’s operating earnings from emerging markets are expected to grow to about 17 percent from 14 percent currently, according to the statement.
Seeking Buyers
BBVA has sought buyers for its pension-fund assets in Chile, Mexico, Peru and Colombia….”
Comments »Au and Balck Gold Circle Jerk the Flatline
“Gold swung between gains and declines in London, after dropping for a fourth consecutive month, as investors weighed expectations of increased hiring in the U.S. against the need for more stimulus….”
“Oil headed for the longest run of weekly gains in more than eight years in New York before a report that may show the U.S. added jobs last month, signaling economic recovery in the world’s biggest crude consumer.
West Texas Intermediate, little changed today, is poised for an eighth weekly advance, the most extensive since August 2004. U.S. employers probably added 165,000 workers last month after a 155,000 increase in December, according to a Bloomberg News survey before Labor Department data. Israeli jets hit Syrian trucks carrying anti-aircraft missiles for the Islamic militant group Hezbollah Jan. 29, according to an official who asked not to be named…”
Comments »S&P Cuts Monte Paschi Rating Over Growing Loss Concerns
“Banca Monte dei Paschi di Siena SpA, the Italian lender facing a criminal probe into money-losing structured deals, had its credit rating cut by Standard & Poor’s on concern the investigation may lead to bigger losses.
The losses “may be higher than initially anticipated” and demonstrate “a risk of management weaknesses,” S&P said in a statement late yesterday. The Siena-based lender had its long- term grade cut to BB from BB+ and remains on watch negative, which means the company may be downgraded again. Shares fell as much as 2.9 percent in Milan trading today….”
Comments »Credit Agricole Takes a $3.64 Billion Goodwill Writedown
“Credit Agricole SA (ACA), France’s third- largest bank by market value, will book 2.68 billion euros ($3.64 billion) of goodwill writedowns in the fourth quarter to reflect stricter rules and a worsening economy.
“These measures do not involve any cash outflows and do not affect the strength of the group,” the Montrouge-based bank said in a statement today. While the goodwill charges come “primarily” from complying with tighter rules, “they also reflect the present macro-economic and financial environment in the relevant countries and business lines,” it said.
Credit Agricole’s total one-time charges, which include costs related to a revaluation of its own debt and a writedown on its stake in Portugal’s biggest publicly traded bank, will reduce the bank’s net earnings by about 3.8 billion euros. Credit Agricole, which had 16.9 billion euros in goodwill on its balance sheet at the end of September, is taking the writedowns following recent recommendations from the European Union’s markets authority.
The European Securities and Markets Authority called on Jan. 21 for improvements in disclosures after reviewing 800 billion euros of goodwill assets at 235 companies in 23 countries across Europe. Goodwill is an accounting convention that represents the amount paid for an acquisition over and above the fair value of its net assets.
‘Cleaning Operation’….”
Comments »The Netherlands Nationalizes a Second Bank Reeling from Real Estate Asset Losses
“The Netherlands took control of SNS Reaal NV (SR) after real estate losses brought the fourth- largest Dutch lender to the brink of collapse, the country’s second banking nationalization since 2008.
The move, aimed “at stabilizing the SNS Reaal group,” will cost taxpayers 3.7 billion euros ($5 billion), the Dutch Finance Ministry said in a statement today. SNS’s property- finance unit will be separated from the company.
“I scrutinized all alternative solutions involving market parties,” Finance Minister Jeroen Dijsselbloem said. “Yesterday night I found myself compelled to conclude no acceptable total solution was offered. I therefore had to use the instrument of last resort, which is nationalization.”
The lender, which acquired ABN Amro Holding NV’s property- finance unit in 2006, has been hurt by losses on real estate loans that have left it struggling to repay a government bailout before next year’s deadline and bolster capital buffers. The nationalization includes all issued shares, core tier 1 capital securities and subordinated bonds, the ministry said.
SNS shares were suspended in Amsterdam. They last traded yesterday at 84 cents, valuing the company at 242 million euros, and have declined 57 percent in the past year.
Fortis, ABN…”
Comments »Russia’s PMI Rises More Than Expected
“Russian manufacturing rebounded in January from a 15-month low as an increase in domestic business helped propel new orders at the fastest pace since March 2011, HSBC Holdings Plc said.
The Purchasing Managers’ Index advanced to 52.0 in January from 50.0 in December, HSBC said today in an e-mailed statement, citing data compiled by London-based Markit Economics. A reading above 50 indicates an improvement in business conditions, while a result below that suggests a deterioration. Economists projected a smaller advance to 50.2, according to the median of five estimates in a Bloomberg survey.
Russia, the world’s largest energy exporter, saw growth slow last year to the weakest pace since a 2009 contraction. The improvement last month suggests manufacturing is stabilizing, which may bolster the broader economy, according to Alexander Morozov, chief economist for Russia at HSBC in Moscow. Manufacturing led industrial production gains for much of 2012.
“The manufacturing sector has rebounded in January after the bleak results in December,” Morozov said in the statement. The growth in new orders was “particularly strong” and was similar to trends before the 2008 crisis, he said….”
Comments »European Markets Take a Bounce After Three Days of Downside Action
“European stocks rose for the first time in three days and U.S. equity-index (IBEX) futures gained before a data on American payrolls and manufacturing. Copper advanced, while the yen weakened to the lowest since April 2010 against the euro.
The Stoxx Europe 600 Index added 0.3 percent at 7:35 a.m. in New York, after gaining as much as 0.5 percent. Standard & Poor’s 500 Index futures increased 0.3 percent. Spain’s IBEX 35 Index fell to a one-month low after regulators lifted a ban on short selling, while stocks inShanghai capped the best week since October 2011 as manufacturing expanded. The yen sank 1 percent to 125.73 per euro. The 10-year Treasury yield climbed two basis points to 2 percent. Copper rose 0.5 percent….”
Comments »A Weaker Rand Helps to Boost PMI Index in South Africa
“South Africa’s purchasing managers’ index rose in January as a weaker rand may help boost exports and mining output resumed after strikes at platinum and gold mines, Kagiso Tiso Holdings said.
The seasonally adjusted index increased to 49.1 from 47.4 in November, Johannesburg-basedKagiso said in an e-mailed statement today. An index level below 50 indicates a contraction in factory output. The Bureau for Economic Research, based at the University of Stellenbosch near Cape Town, conducts the PMI survey for Kagiso.
“The apparent stabilization in the EU economy and the weaker rand exchange rate may have helped,” Hugo Pienaar, senior economist at the BER, said in the statement. “Unfortunately, the latest PMI results also contain some worrying developments.”
South Africa’s economy is slumping as concerns about growth in Europe, the U.S. and Chinasap demand…”
Comments »$TM Suppliers Face EU Fines in Largest Cartel Probe Ever
“Toyota Motor Corp. (7203) suppliers embroiled in the largest cartel probe on record have rebounded from a slump that followed almost $1 billion in fines in Japan and the U.S. Now they face the prospect of even more penalties in Europe.
EU fines will probably be announced this year, said Takeshi Shinagawa, a director at the Japan Fair Trade Commission. Parts makers Sumitomo Electric Industries Ltd. (5802), JTekt Corp. (6473) and at least 12 others could get EU cartel fines higher than those levied in Japan, he said.
Toyota affiliate Denso Corp. (6902) and Sumitomo Electric, also a supplier to Honda Motor Co. and Nissan Motor Co., have been investigated in cartel probes following raids of four manufacturers by watchdogs in the U.S., the EU and Japan in 2010. Fines this year may be big enough to cause declines in the component makers’ shares, said Syusaku Nishikawa, an analyst at Daiwa Securities Co….”
Comments »
