$NOK Catches a Break as Windows Phone Class Action Suit is Dismissed

“Nokia may be struggling to reach a critical mass of users to adopt its Windows Phone-based smartphones instead of Android or iPhone devices, but today it got a little light relief in its bigger battle: it’s had a class action suit over its choice of the Windows Phone platform formally dismissed, with no compensation paid.

“After further investigation, the plaintiffs have agreed to dismiss the case against all defendants without any compensation being paid to any plaintiff or their counsel by any defendant,” Nokia notes in a statement. “The complaint has been withdrawn and dismissed with prejudice by the court.”

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“The founder of Best Buy Co. Inc. (NYSE: BBY) is preparing to make a fully financed offer for the company no later than this Sunday. The offer is expected to be in the range of $5 billion to $6 billion.

According to a report at the StarTribune, Best Buy founder Richard Schulze has lined up financing from bankers and private equity investors, including Cerberus and Leonard Greene & Partners.

When Schulze first made some noise about acquiring the floundering big-box electronics retailer, shares were above $20 and it was generally believed an offer of around $25 a share would be needed to get the deal down. Best Buy’s shares fell below $12 in mid-November, and a per share price of around $17 may get the deal done…”

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“Pier 1 Imports Inc. (NYSE: PIR) reported third-quarter fiscal 2013 results before the markets opened this morning. The home furnishing retailer reported adjusted diluted earnings per share (EPS) of $0.25 on revenues of $424.5 million. In the same period a year ago, Pier 1 reported EPS of $0.21 on revenue of $382.7 million. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.24 and $418.49 million in revenue. ”

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“CVS Caremark Corp. (CVS), the largest provider of prescription drugs in the U.S., forecast 2013 profit that topped analysts’ estimates as it benefits from new pharmacy customers.

Adjusted profit next year will be $3.84 a share to $3.98 a share, Woonsocket, Rhode Island-based CVS said today in a statement. The average estimate of 21 analysts in a Bloomberg survey was $3.81.”

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“For more than a decade, telecom moguls and hedge fund titans have wrangled with regulators in a bid to wring billions of dollars out of thin air. This week, the government crowned a winner.

The Federal Communications Commission late Tuesday said Dish Network Corp.,DISH +1.77% led by satellite-TV pioneer Charlie Ergen, would be able to use a slice of the airwaves designated for satellite-phone transmissions to instead offer much more lucrative cellphone service.

Mr. Ergen started assembling that spectrum for a total of about $3 billion half a decade ago. At a stroke, the FCC has now raised its value to as much as $12 billion, according to some analysts’ estimates. Mr. Ergen has to do the hard work of putting that spectrum to use or getting FCC approval to sell it…”

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“Top central banks are extending their arrangements to swap dollars and other currencies to make sure banks have the money they need.

The decision announced Thursday extends a crisis measure that was to expire Feb. 1, 2013. Now it will be extended for another year.

Taking part are the U.S. Federal Reserve, the European Central Bank, the Bank of England, the Swiss National Bank and the Bank of Canada. The Bank of Japan is to consider the measure at its next meeting.

The idea behind making each other’s currencies available is so banks can get whatever currency they need to meet their obligations. The measure helps stabilize a financial system dealing with the fallout of five years of turmoil, a debt crisis in Europe and slowing growth in emerging markets.”

“(Reuters) – Google’s navigation tool has returned to the iPhone, months after Apple’s home-grownmapping service flopped, prompting user complaints, the firing of an executive and a public apology from Apple’s CEO.

The Google Maps app will be compatible with any iPhone or iPod Touch that runs iOS 5.1 or higher, the company said in a blog post. (http://link.reuters.com/jek64t)

Apple launched its own service in early September, and dropped Google Maps, when it launched the iPhone 5 and rolled out iOS 6, an upgrade to its mobile software platform.

Users complained that Apple’s new map service, based on Dutch navigation equipment and digital map maker TomTom’s data, contained errors and lacked features that made Google Maps popular….”

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“BRUSSELS (Reuters) – European Union regulators ended an antitrust probe into e-book prices on Thursday, accepting an offer by Apple and four publishers to ease pricing restrictions on Amazon and other retailers.

The decision hands online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in a fast-growing market publishers hope will boost revenue and customer numbers. Reuters first reported in November that the Commission was accepting the settlement offer.

The European Commission said on Thursday the concessions from Apple and the publishers soothed concerns that their pricing deals curbed competition.

“The commitments proposed by Apple and the four publishers will restore normal competitive conditions in this new and fast-moving market, to the benefit of the buyers and readers of e-books,” EU Competition Commissioner Joaquin Almunia said.

Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend “most-favored nation” contracts for five years.

Such clauses bar publishers Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA’s Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.

The agreements, which critics say prevent Amazon and other retailers from undercutting Apple’s charges, led to the EU antitrust investigation in December last year.”

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Initial Claims: Prior 370k, Market Expects 375k, Actual 343k

Retail Sales +0.3%,  ex auto 0.0, ex auto and gasoline +0.7

PPI +0.8% , ex food and energy is +0.1%, YoY +1.5%

“A majority of Americans say the Republican Party needs a major overhaul after electoral losses revealed demographic, messaging and technological shortfalls compared with Democrats, a Bloomberg National Poll shows.

Even among Republicans, just 16 percent say their party is fine and doesn’t need to change. The survey also shows the party is viewed as too protective of the wealthy and that New Jersey Governor Chris Christie has a slight edge among high-profile Republicans who may lead the party.

The party is reassessing its positions and tactics after losing the presidential race, failing to make gains in the U.S. Senateand seeing their House majority shrink after the 2012 elections. The Republican National Committee this week created a study group to examine how it can improve the party’s performance ahead of the 2014 congressional elections and 2016 race for the White House…”

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“MetLife Inc. (MET), the largest U.S. life insurer, projected 2013 earnings that were below analysts’ estimates as low interest rates weigh on investment returns.

Next year’s operating profit, which excludes some investment results, will be $4.95 to $5.35 a share, the New York-based company said today in a statement. That compares with the average estimate of $5.48 among 19 analysts surveyed by Bloomberg. Operating profit in the current quarter may also fall short, at $1.12 to $1.22 a share, MetLife said, compared with estimates for $1.22.”

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“Sprint Nextel Corp. (S) offered to take over its Clearwire Corp. (CLWR) in a $2.1 billion deal, ending a four- year joint venture that struggled to build a nationwide network capable of challenging Verizon Wireless and AT&T Inc. (T)

Sprint, which already owns more than 50 percent of Clearwire, is seeking to acquire the remaining shares at $2.90 each, according to a regulatory filing today. That’s 5.5 percent more than the stock’s closing price in New York yesterday. Sprint proposed to provide interim financing of as much as $800 million to help keep the money-losing Clearwire afloat.”

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“Oil slid from the highest level in a week as U.S. lawmakers disagreed on steps to avert automatic spending cuts and tax increases that take effect on Jan. 1 and threaten to curb economic growth and fuel demand.

Futures dropped as much as 0.6 percent in London after rising the most in three weeks yesterday on a plan by the Federal Reserve to expand its monetary stimulus. Republicans have “some serious differences” with President Barack Obama’s budget proposals, House Speaker John Boehner told reporters in Washington. The Fed’s bond purchases can’t offset full effects of the so-called fiscal cliff, Chairman Ben S. Bernanke said.

“Market participants are jittery over the fiscal cliff even though experience shows that agreement won’t come until five minutes before the deadline,” Thorbjorn Bak Jensen, an oil market analyst at Global Risk Management in Middelfart, Denmark, said by telephone. “The Fed is printing money, and a lot of it is already priced in.”

Brent for January settlement on the London-based ICE Futures Europe exchange declined as much as 65 cents to $108.85 a barrel and was at $108.97 at 12:49 p.m. London time. It climbed 1.4 percent yesterday, or $1.49 a barrel, the most since Nov. 19. The European benchmark crude has advanced 1.5 percent this year.

West Texas Intermediate crude for January delivery on the New York Mercantile Exchange fell 60 cents to $86.17 a barrel in electronic trading. The contract advanced 98 cents to $86.77 yesterday, the highest close since Dec. 5. New York-traded WTI has declined 13 percent in the year.

Brent was at a premium of $22.83 to WTI.”

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“European Union finance ministers agreed to put the European Central Bank in charge of all euro- area lenders in a deal that paves the way for the currency bloc’s firewall fund to provide direct bailouts to banks.

The accord marks a step toward tightening integration of the monetary union to stem the financial crisis that emerged in Greece in 2009. The policy makers’ goal was to break a vicious circle that undermined confidence in Europe’s banks.

While the agreement marks a breakthrough, “there are still some thorny issues,” Julian Callow, London-based chief international economist at Barclays Plc, said today on Bloomberg Television. “What about the financing, bank resolution, what about deposit insurance,” he said.

The new supervisor should be ready by March 1, 2014, with about 200 banks automatically qualifying for direct ECB oversight, EU Financial Services Commissioner Michel Barniersaid at 4:30 a.m. today in Brussels after 14 hours of talks. In the interim, the 500 billion-euro ($654 billion) European Stability Mechanism could aid banks directly using its own procedures and asking ECB supervisors to step in, he said.

EU leaders sought common bank oversight to rejuvenate their crisis-management effort. The heads of state and government, who gather in Brussels today for a regular summit, will be looking beyond ECB supervision to other measures needed to break the links between banking woes and sovereign-debt struggles, such as who should pay to stabilize failing banks.”

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“GrainCorp Ltd. (GNC), the largest grain handler in eastern Australia, rejected Archer-Daniels-Midland Co. (ADM)’s higher A$2.8 billion ($3 billion) bid as too low.

“The increase in the proposed price has not changed the board’s view that ADM’s proposal materially undervalues GrainCorp,” the Sydney-based company said today in a statement. “GrainCorp’s board will be constructive in any dealings in relation to proposals that have the potential to be in the best interests of shareholders.”

ADM raised its bid by 3.8 percent last week as it seeks control of the only major publicly traded grain merchant in Australia. A successful deal would give the world’s largest corn processor control of seven of the eight ports that ship grain in bulk from the east coast of Australia, the second-biggest wheat exporter.

“It was very unlikely that GrainCorp would get won over by such a small sweetener,” Peter Esho, Sydney-based chief market analyst for City Index Ltd., said by phone. “While the momentum is behind the business I think shareholders will be quite pleased to let the board either seek out another interested party or continue to talk up the business.”

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“Australia’s bonds fell, pushing 10- year yields to the highest since September, after a Federal Reserve decision to stimulate the economy by expanding Treasury buying crimped investor appetite for safer assets.

The Australian dollar traded near the highest level in almost three months versus its U.S. peer, which tends to be debased by expansionary monetary policy. The Federal Open Market Committee said interest rates will stay low as long as U.S. unemployment remains above 6.5 percent and inflation is in check. The Australian and New Zealand dollars were buoyed as global equities gained and before a private report tomorrow forecast to show Chinese manufacturing is strengthening.

“The market is starting to reflect the global economic backdrop that is looking somewhat better than it had over recent times,” said Gavin Stacey, chief interest-rate strategist in Sydney at Barclays Plc, referring to Australian bond yields. “We think yields in general across the curve are likely to grind higher.”

The 10-year Australian rate rose nine basis points, or 0.09 percentage point, to 3.31 percent as of 4:10 p.m. in Sydney. The equivalent U.S. yield reached 1.72 percent, the most since Nov. 7.

Australia’s dollar was at $1.0551 from $1.0555 yesterday, when it climbed as high as $1.0586, the strongest since Sept. 14. The Australian dollar dropped versus its New Zealand counterpart to NZ$1.2491, the weakest since Oct. 12. The New Zealand dollar fetched 84.43 U.S. cents from 84.36 yesterday, when it touched 84.54, the most since Feb. 29.”

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“South Africa’s producer-price inflation rate was unchanged in November, giving the Reserve Bank room to keep interest rates low to stimulate growth.

The cost of goods leaving factories and mines rose 5.2 percent in November from a year ago, Pretoria-based Statistics South Africa said on its website today. The median estimate of 12 economists surveyed by Bloomberg was 5.5 percent. Prices increased 0.3 percent in the month.

“The down-side surprise would feed into relief” for consumer prices, Carmen Nel, a Cape Town-based analyst at Rand Merchant Bank, said by phone. “Input cost pressures, significantly from the rand, seem to be largely absent.”

The Reserve Bank has held the benchmark repurchase rate at 5 percent since July. Consumer-price inflation was unchanged at 5.6 percent last month, the statistics agency said yesterday. The bank’s goal is to keep inflation within a range of 3 percent to 6 percent…”

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