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Monthly Archives: September 2012

$GM Recalls 474k Vehicles to Fix Transmission Cables

“DETROIT (AP) — General Motors is recalling nearly 474,000 Chevrolet, Pontiac and Saturn cars to fix a transmission problem that can cause the cars to roll away unexpectedly.

The recall affects 2007-2010 Chevrolet Malibus, Pontiac G6s and Saturn Auras in the U.S., Canadaand Mexico as well as a small number of exports. All the cars have four-speed automatic transmissions.

GM says part of the transmission cables can break. When this happens, the shifter can show that the car is in park when it’s really in gear. GM says it knows of four crashes from the problem but no injuries.”

Full article 

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Darden Restaurants, $DRI, Sees Their Profits Rise Despite Having ‘Red Lobster’ in Their Portfolio

“NEW YORK (AP) — Darden Restaurants Inc. said Friday that its fiscal first-quarter net income rose 4 percent even as it struggled to grow a key revenue figure at its flagship Olive Garden and Red Lobsterchains.

Its earnings beat Wall Street expectations, and its shares rose more than 4 percent in premarket trading.”

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Global Markets and U.S. Futures Rise on The Apple iPhone 5 Debut ????

Investors are bidding up stocks and commodities on get this; the iPhone debut. At least, this is what some media outlets are saying is the cause for the rally.

Chalk it up to no short sellers willing to fight the central banks and money managers trying to play catch up to boost year end performance and a rumor that a bailout for Spain is coming next week.

World Markets



USD Libor


Yields for ItalySpainFrance,  and Germany …



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Government Math: Obama Regulations to Cost 20 Times Estimate

What else do you expect in a monetary debasement world. Remember, in order to revitalize the banking system you must replace the money lost and exceed the debt outstanding to get the wheels turning. So we are not even close to having a normal banking system, and no matter who is elected the spending will continue.

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State of the Union: More Than Two Thirds of Americans Live Paycheck to Paycheck

“SAN ANTONIO, Sept 19 (Reuters) – More than two-thirds of Americans are now living paycheck to paycheck, according to a survey released on Wednesday by the American Payroll Association. The survey of 30,600 people found that 68 percent said it would be somewhat difficult or very difficult if their paychecks were delayed for a week. These results show Americans are still struggling with the recession’s effects, the association said.

“This study clearly shows that Americans are finding it hard to save,” said Dan Maddux, executive director of the San Antonio-based association of payroll managers.”

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U.S. Flash PMI Steady on Weak Exports

“The U.S. Flash Manufacturing purchasing managers index (PMI) from Markit Economics is out today, and the reading is unchanged at 51.5. Any number above 50 indicates that the economy is expanding.

Among the various components of the flash reading, there are nuggets of good news. Employment is expanding at a faster rate, with a reading of 52.7 in September compared with 52.4 in August. Output prices are rising, which indicates manufacturers can charge more to pay the also rising input prices. Unfortunately, input prices are rising faster than output prices.

The new order subindex reading rose from 51.9 to 52.4 a faster growth rate month-over-month. But Markit notes that new orders for exports fell at the steepest rate since October 2011.

Markit’s chief economist made some observations:”

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$MA Issues a Profit Warning


“(Reuters) – MasterCard Inc said revenue growth in the second half of the year would be lower than its second-quarter levels, which had disappointed investors.

The credit and debit card network’s revenue grew 9 percent in the last quarter, but missed analysts’ estimates as worldwide purchase volume growth slowed to its lowest level in five quarters.

Analysts expect the company to report revenue of $1.94 billion in the third-quarter, up 7 percent from a year ago, according to Thomson Reuters I/B/E/S.”

Full report

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Is the Fed Putting Themselves at Risk by Buying High ?

“Here’s a really interesting chart via Also Sprach Analyst showing the implementation of the various QE programs and market stresses.  The chart shows the Credit OAX Index as well as the VIX.  These are two well known stress indicators that spike when the markets are under duress.  QE1 and QE2 were implemented on the back of extreme market stresses.  Of course we all know what happened in 2008 and then the 2010 QE implementation came on the back of the Flash Crash and the spiraling of the Euro debt crisis.

But what’s most interesting to me is that the Fed has implemented the policy with the hopes of generating a “wealth effect” in the markets by pushing various asset prices higher with the hopes that this will create a virtuous cycle of people feeling wealthier, spending more and generating recovery.  I think that strategy puts the cart before the horse, but let’s say it actually works.  When would be the ideal time to implement such a strategy? ”

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Fed’s Fisher: QE3 May Fuel Inflation Without Creating Jobs

“Federal Reserve Bank of Dallas President Richard Fisher said the central bank’s third round of bond purchases will probably fail to create jobs while risking higher inflation.

“I do not see an overall argument for letting inflation rise to levels where we might scare the market,” Fisher said Wednesday on Bloomberg Radio’s “The Hays Advantage” with Kathleen Hays and Vonnie Quinn. “We have seen a sharp rise in inflation expectations. If you let this get out of hand, then I think we will have a market reaction.”

Fisher, who doesn’t vote on monetary policy this year, opposed the Federal Open Market Committee decision last week to expand its holdings of long-term bonds with open-ended purchases of $40 billion of mortgage debt every month in a new round of quantitative easing. The Fed, led by Chairman Ben Bernanke, is seeking to boost growth and reduce 8.1 percent unemployment.”

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