“MUNICH (Reuters) – German industrial conglomerate Siemens is shutting down the last of its solar energy businesses after it failed to find a buyer, the company said on Monday.
Confirming a report in German newspaper Handelsblatt, a spokesman for Siemens said the group would close Solel by early next year. The Israeli business has accumulated losses of around 1 billion euros ($1.33 billion) since Siemens bought it in 2009, including a write-off of the entire purchase price.
Siemens has spent seven months trying to sell Solel, which makes components used in solar-thermal power stations. Some 280 employees will be affected by the closure, most of them in Israel.
The cost will run into the mid-double digit millions of euros, according to Siemens….”Comments »
“(Reuters) – Orchard Supply Hardware Stores Corp has filed for Chapter 11 bankruptcy protection, court documents showed on Monday, with rival retailer Lowe’s Companies set to buy the majority of its assets for $205 million in cash.
Orchard, which was spun off by Sears Holdings Corp in late-2011, said it was carrying a high debt load and that it may not be in a position to make scheduled payments when the first tranche of its debt matures in December 2013.
“The company’s substantial debt due, in part, to significant recapitalization dividends paid to Sears, made it difficult, if not impossible for the company to right itself. The ever present prospect of violating the company’s leverage ratio covenants hampered many of its operational strategies,” Orchard said in the court filing.
Management and the board determined that a sale of Orchard through a Chapter 11 process was the best possible outcome for the company and its stakeholders after exploring a range of alternatives, the company said.
The company, which generated revenue of $657 million in the 2012 fiscal year, listed total liabilities of $480.1 million and total assets of $441 million, according to a court filing.
Orchard said it has secured commitments for $177 million in debtor-in-possession (DIP) financing, which will help it to continue meeting its financial obligations throughout the Chapter 11 case.
LOWE’S ACTS AS “STALKING HORSE” BIDDER…”Comments »
“LONDON (Reuters) – Britain’s Co-operative Group has agreed a plan to plug a 1.5 billion pound ($2.4 billion) capital hole at its bank which forces bondholders to pay part of the bill, avoiding a repeat of the taxpayer-funded bailouts staged during the financial crisis.
Using a “bail-in” model, bondholders must swap their debt for new bonds and equity in the bank to be listed on the London Stock Exchange, while the Co-op Group, Britain’s biggest customer-owned business, will also provide financial support for its banking unit, the Co-op said on Monday.
The future of the bank, which has 4.7 million customers, has been in question since Moody’s cut the lender’s credit rating to junk status and warned it might need taxpayer support – something the bank denied. Its capital position had come under increased scrutiny since it pulled out of a deal to buy hundreds of bank branches from Lloyds Banking Group in April.
The Co-op Group, which also runs supermarkets, funeral services and pharmacies, said the plans will provide stability for the Co-operative Bank <cpbb_p.l>, generating 1 billion pounds of new capital this year and 500 million pounds in 2014.
“We have put in place a detailed and comprehensive solution to meet the current and longer-term capital requirements of the bank. In doing so we have agreed a plan to ensure its future,” said Chief Executive Euan Sutherland.
The measures will involve an exchange offer to investors in the bank’s subordinated capital securities, resulting in the transfer of ordinary shares which will be listed in October.
Co-op’s debt holders are all ‘junior’, or ‘subordinated’, a type of bond that pays higher interest than ‘senior’ debt, but carries a higher risk. These kinds of bonds suffered heavy losses in rescued banks in Ireland and Spain….”Comments »
“(Reuters) – Starboard Value LP, a large shareholder in Smithfield Foods Inc , urged the world’s largest pork producer to explore a breakup rather than go ahead with a planned $4.7 billion takeover by Chinese meat company Shuanghui International.
The activist shareholder, which disclosed a 5.7 percent stake in the company on Monday, said Smithfield might be worth “well in excess” of the $34 per share offered by Shuanghui if it split into hog production, pork and international units and shopped the businesses separately.
Starboard said in a letter dated June 17 to Smithfield’s board its sum-of-the-parts valuation was between $44 and $55 per share.
Officials from Smithfield and Shuanghui were not immediately available to comment….”Comments »
New orders fall while unemployment ticks higher…..Comments »
“West Texas Intermediate crude traded at the highest price in more than nine months because of renewed speculation that unrest in Syria will spread to other parts of the Middle East and disrupt supplies.
Futures gained as much as 0.8 percent after rising the most in five days on June 14, capping a second weekly gain. U.S. President Barack Obama was said to authorize arming Syrian rebel groups. Iranian President-elect Hassan Rohani’s vow to improve ties with the world carried him to a surprise first-round election win. Stronger summer demand and supply risks continue to support the market, Morgan Stanley said in a research note.
“We’ve seen prices rising over the past week primarily over geopolitical worries,” Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, said by phone. “We are settling in for a range-bound day of trading and any major moves will have to be geopolitical related.”
WTI for July delivery was at $98.52 a barrel, up 67 cents in electronic trading on the New YorkMercantile Exchange as of 11:31 a.m. London time. It had climbed as high as $98.67, the most since Sept. 14. The volume of all futures traded was 30 percent above the 100-day average. The contract rose 1.2 percent to $97.85 on June 14, advancing the most since June 7 to the highest settlement since Jan. 30.
“Vale SA (VALE5), Brazil’s largest exporter, said further local currency depreciation could counter cost rises and a slowdown in Chinese iron-ore demand as it seeks to regain market share from Rio Tinto Group and BHP Billiton Ltd. (BHP)
The real, the worst-performing emerging-market currency in the past three months, probably will weaken to about 2.40 from 2.15 per U.S. dollar, bolstering Brazil’s competitiveness, said Jose Carlos Martins, Vale’s executive director for ferrous and strategy. China’s iron-ore and steel demand growth is set to slow to about 5 percent from 10 percent in the first five months of the year, he said….”Comments »
“Australia’s dollar rose, extending its first weekly gain against the greenback in six, amid speculation record bets on its decline may be overdone.
The Aussie rebounded from its biggest drop in a week before minutes tomorrow from theReserve Bank of Australia that could point to the timing of a potential interest-rate cut. The Australian and New Zealand dollars climbed against their 15 major peers before a Federal Reserve meeting this week that may provide clues on when policy makers will begin curtailing quantitative easing. The kiwi dollar touched the highest this month against its Australian counterpart after New Zealand’s consumer confidence climbed to the most in three years.
“Positioning is at record extremes” in the Australian dollar, said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. Trading “should remain largely choppy, but there’s a risk of potential short-covering,” she said. A short position is a bet an asset’s price will fall.
The Australian dollar rose 0.5 percent to 96.21 U.S. cents at 5:02 p.m. in Sydney from June 14, when it dropped 0.7 percent, the most since June 7. It gained 0.8 percent last week. The Aussie strengthened 1.7 percent to 91.55 yen.
The New Zealand dollar advanced 0.6 percent to 80.94 U.S. cents, and gained 1.5 percent to 76.97 yen. It was little changed at NZ$1.1894 per Australian dollar after earlier gaining to NZ$1.1850, the highest since May 29.
“Elan Corp. (ELN) shareholders approved a share-repurchase program, a vote that Elan says will force Royalty Pharma to end its unsolicited $6.7 billion takeover bid.
Investors voted against three other transactions, including an investment in Theravance Inc. (THRX)’s royalties, Elan said in a statement today after shareholders met in Dublin, where both companies are based. Royalty Pharma’s offer has been contingent on investors rejecting all transactions proposed by Elan management, according to a ruling by the Irish takeover panel.
The vote may not necessarily end Royalty Pharma’s pursuit. Elan said last week it will invite Royalty Pharma to participate in a formal sale process with other potential suitors. That suggests the two companies may begin negotiations, ending a standoff that has lasted almost four months, said Adrian Howd, an analyst at Berenberg Bank in London.
“By going into a formal sale process and inviting Royalty in, Elan looks to be taking the hostility out a bit,” Howd said before the vote announcement. “They’re saying, ’Whatever happens on Monday, we’re in a sale process now, so if you’re interested, come and talk with us.’”
“There is something magnificent about fighting a battle that you know you can’t win.
If we don’t carry out those acts of defiance on a spiritual and moral level; we die” ~ Unknown ~
“Only after the last tree is cut down, the last of the water poisoned, the last animal destroyed…only then will you realize you can not eat money”
~Cree Indian Prophecy~
I am taking a long weekend so cheers on your weekend when your done with “corporate share cropping”[youtube://http://www.youtube.com/watch?v=_KgFBciS_X0 450 300]
[youtube://http://www.youtube.com/watch?v=utYcFf93Srs 450 300]Comments »
[youtube://http://www.youtube.com/watch?v=fjrkRu4gyz8 450 300]
“In the years following the financial crisis, a grand, sweeping narrative took root in global investment circles. It held that investment flows were undertaking a reallocation that was centuries in the making, as money began to leave the debt-laden, aging societies of the developed world and enter high-growth emerging markets.
After years of struggling with their own poor finances, these up-and-coming markets were now thought to be in better shape than their wealthier peers in Europe and North America. A big run-up in emerging market stocks, bonds and currencies seemed to prove that point. Read “The Man of Steel and Ben Bernanke.”
But now a worldwide selloff in emerging markets suggests this story needs some editing. Clearly, these global investment flows weren’t solely explained by this historic turning of the tables; they were also aided by an abundance of cheap liquidity from the developed world’s biggest central banks. The recent reversal of that effect reminds us that however much emerging markets have matured, they remain vulnerable to shifts in the richer economies….”Comments »
“The derecho threat is back, and one in five Americans, or 64 million people in 10 states (possibly a 240-mile stretch), could be in its path.
A derecho, Spanish for straight, is a widespread and long-lasting storm that comes with fast-moving thunderstorms and rain, and also can bring damaging high winds, hail as big as golf balls as well as tornadoes. Weather forecasters have been warning that this rare weather phenomenon, which last year left a 700-mile trail of damage across the Midwest and mid-Atlantic, this time could hit a swath of states from Iowa to Maryland starting Wednesday. Watch a chilling roundup of what happened last year
How bad can it get? Wind gusts of 91 mph were recorded at the Fort Wayne International Airport in Indiana during last year’s June “super” derecho storm.
Forecasters warned that power outages could also be a result — 3.7 million were left without electricity in the middle of a heatwave after last year’s storm. The June 2012 derecho also killed 22 people, including an elderly lady sleeping in her bed when a falling tree crashed into her home. Tornadoes that have pummeled the Midwest this year have already killed 56 this year….”Comments »
“Bond yields are headed near 4% and not even Fed Chairman Ben Bernanke can stop the “inevitable shock” that’s coming.
That’s a fresh view from Goldman Sachs’s former chief economist Jim O’Neill, writing an op/ed column for Bloomberg on Wednesday, entitled, “Can Bernanke avoid a meltdown in the bond market?”
His answer? Not really….”Comments »
“The U.S. government posted a budget deficit of $139 billion in May, 11 percent higher than a year ago and above economists’ expectations, partly because of temporary calendar adjustments, the Treasury Department said.
May has had a deficit for 54 out of the last 59 years, a Treasury official said, as it is typically the month when the government refunds tax payments to U.S. citizens.
But so far this fiscal year, which began in October, the government budget deficit has shrunk faster than expected, standing at $626 billion at the end of May, 26 percent lower than the deficit in May 2012.
That is largely due to a 15 percent increase in tax receipts compared to last year, at $1.8 trillion, while spending has increased by only 1 percent. Revenues have been boosted because payroll tax cuts expired, taxes went up on richer Americans and the economy has started to recover.
The Congressional Budget Office last month estimated the United States is on track for its first deficit below $1 trillion since President Barack Obama came into office. The deficit should fall to 4 percent of GDP this year, less than half the shortfall in 2009, the CBO said….”Comments »
“Following yesterday’s ugly 3 Year auction, some were worried the bond market weakness could spill over to today’s benchmark 10 Year reopening of $21 billion in paper. It prices just through the When Issued of 2.210%, or at 2.209%, a little better than expected, although the highest yield since October of 2011. So while the demand on the surface was sufficient, the Bid to Cover, which dropped to only 2.53, below last month’s 2.70, well below the TTM average of 2.92, and the lowest since August of 2012…”Comments »