STOCK MARKET WATCH, Tuesday February 13

[ozymandius]

Tuesday February 13, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 706 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2241 DAYS
WHERE'S OSAMA BIN-LADEN? 1945 DAYS
DAYS SINCE ENRON COLLAPSE = 1905
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 7
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON February 12, 2007

Dow... 12,552.55 -28.28 (-0.22%)
Nasdaq... 2,450.38 -9.44 (-0.38%)
S&P 500... 1,433.37 -4.69 (-0.33%)
Gold future... 667.30 -5.00 (-0.75%)
30-Year Bond 4.89% +0.02 (+0.43%)
10-Yr Bond... 4.80% +0.02 (+0.42%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. Thank you, whoever you are, for the heart.

:hug:

[ozymandius]

2. Today's Market WrapUp

Crude Revelations
BY ROB KIRBY

We hear much in the media regarding the cost of the war in Iraq in terms of lives lost – the human costs – and hardly a week goes by without some media account – or debate - of the war’s cost in dollar terms.

“Even if the U.S. exits Iraq within another three years, total direct and indirect costs to U.S. taxpayers will likely be more than $400 billion, and one estimate puts the total economic impact at up to $2 trillion.”

While it’s not my intention in this space to diminish the importance of these headline grabbing issues – I would like to draw the readers’ attention to a few additional crude facts.

-cut-

Interesting, isn’t it, that when one speaks of Iraq, crude oil and future potential, you intuitively know that a discussion relating to BANKING, FIAT MONEY and FUTURES cannot be far behind.

http://www.financialsense.com/Market/wrapup.htm

[ozymandius]

3. Today's Report

8:30 AM Trade Balance Dec
Briefing Forecast -$59.7B
Market Expects -$59.5B
Prior -$58.2B

http://biz.yahoo.com/c/e.html

[UpInArms]

57. Trade Balance - Dec - $61.2 Billion (a record trade gap of $763.6 Billion)

02. U.S. 2006 trade gap with China record $232.5 bln
8:30 AM ET, Feb 13, 2007 - 3 minutes ago

03. U.S. 2006 trade gap record $763.6 bln, up 6.5% from '05
8:30 AM ET, Feb 13, 2007 - 3 minutes ago

04. U.S. Dec. trade gap with China $19.0 bln
8:30 AM ET, Feb 13, 2007 - 3 minutes ago

05. U.S. Dec. trade gap above consensus of $59.5 bln
8:30 AM ET, Feb 13, 2007 - 3 minutes ago

06. U.S. Dec. trade gap widens 5.3% to $61.2 bln
8:30 AM ET, Feb 13, 2007 - 3 minutes ago

[ozymandius]

4. Oil prices edge higher in Asian trading

SINGAPORE - Oil prices rose slightly in morning trading Tuesday as traders assessed a steep plunge the day before and looked ahead to a U.S. energy report expected to show drops in heating oil and other distillate inventories.

Monday's drop of $2.08 a barrel was attributed to moderating U.S. temperatures and expectations that there will be a crude surplus in the spring.

On Tuesday, light, sweet crude for March delivery was up 10 cents to $57.91 a barrel in Asian electronic trading on the New York Mercantile Exchange.

Traders were looking ahead to Wednesday's weekly U.S. inventory report. According to a Dow Jones Newswires survey, U.S. stocks of heating oil and other distillate fuels are expected to decline about 4 million to 5 million barrels below the 136.3 million barrels reported last week.

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

5. Oil holds below $58 on signs of steady OPEC output

LONDON (Reuters) - Oil slipped below $58 a barrel on Tuesday, extending a $2 slide from the previous day on signs that OPEC will refrain from further oil supply cuts when it meets in March.

The International Energy Agency said in a monthly report the world market would tighten markedly if the Organization of the Petroleum Exporting Countries cut beyond its existing 1.7 million barrels per day reduction.

U.S. crude was off 23 cents at $57.58 a barrel at 1033, after sliding $2.08 or nearly 3.5 percent on Monday. London Brent crude slipped 12 cents to $56.48 a barrel.

OPEC ministers, including influential Saudi Oil Minister Ali al-Naimi, have signaled that further supply cuts would probably not be needed when the group meets on March 17 in Vienna.

more

[Ghost Dog]

79. Crude price slide continues

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39126.4044444444-889366313&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Oil prices continued to retreat on Tuesday after a sharp decline in the precious session prompted by comments from Ali al-Naimi, the energy minister of Saudi Arabia, who warned that the Organisation of the Petroleum Exporting Countries might keep production quotas unchanged when the oil cartel meets again next month. ICE April Brent fell 24 cents to $57.57 a barrel in late afternoon trade while Nymex March West Texas Intermediate 24 cents to $57.57 a barrel. Opec has already agreed to reduce output by 1.7m barrels a day but ministers from Kuwait, Nigeria and Algeria have already said they see no need for further supply cuts. On Tuesday, the International Energy Agency raised its forecast for global oil demand growth and warned Opec that further supply cuts could tighten the market significantly. “Opec risks over-compensatting in its attempts to rebalance fundamentals and to support prices above what looks increasingly like a preferred floor of $50 to $55 a barrel,” said the IEA in its monthly report. The IEA said non-Opec demand growth was forecast to rise by 3.2 per cent this year compared with earlier expectations for a 3 per cent, mainly due to higher Chinese consumption. Oil demand in China is expected to rise to 7.6m barrels a day from 7.1m b/d last year.

[Ghost Dog]

87. UPDATE 7-Oil rises over $58, IEA sees tighter market

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=d4570763-ade7-468a-b2d7-a27422826f3f

LONDON, Feb 13 (Reuters) - Oil climbed above $58 a barrel on Tuesday as the International Energy Agency boosted its 2007 demand forecast and said it saw tightening market fundamentals.

U.S. crude <CLc1> was up 65 cents at $58.46 a barrel at 1728 GMT, after dropping $2.08 or nearly 3.5 percent on Monday on signs that OPEC will refrain from further supply cuts when it meets in March.

London Brent crude <LCOc1> rose 29 cents to $56.89 a barrel.

Robust economic expansion in the world's second largest consumer, China, prompted the IEA to raise its 2007 oil demand growth forecast.

Global demand will grow 1.55 million barrels per day (bpd) this year, up from a forecast of 1.39 million bpd a month ago, the IEA said in its monthly Oil Market Report.

"Upward demand revisions, a now-weaker non-OPEC growth trend and declining Iraqi production all point to markedly tighter global balances," said the IEA, which advises 26 industrialised nations.

Non-OPEC output growth continued to miss forecasts as new projects were delayed, while Iraq's dilapidated oil sector struggled to maintain output.

The IEA noted that supply curbs from the Organization of Petroleum Exporting Countries had helped to drain stockpiles in major consuming countries of 40.2 million barrels in December and that downward trend continued in January.

The agency said that any further OPEC cut beyond its existing reduction of 1.7 million barrels per day might be a step too far in the group's efforts to balance supply and demand.

/...

[Ghost Dog]

88. Spinning Straw into Black Gold: Chevron's CTO Don Paul inteview

http://money.cnn.com/magazines/business2/business2_archive/2006/11/01/8392009/index.htm?section=money_latest
We may be out of oil, says Chevron CTO Don Paul. But thanks to new technology, we'll never run out of fuel.

(Business 2.0 Magazine) -- Every oil company likes to claim it's really in the energy business. But at Chevron, chief technology officer Don Paul is seriously thinking about the day the petroleum wells run dry. The first way we'll cope, he says, is by extracting usable fuel out of tar sands, oil shale, and coal.

But fossil fuels are certainly not the future. Paul, who trained as a geophysicist at MIT and got his start at Chevron as a researcher three decades ago, has seen multiple waves of technology transform his business. First, computers revolutionized exploration and drilling. Now, Paul argues, nanotech-fueled chemistry is about to put his company into what he calls the molecule business, where it won't refine gasoline anymore - it'll synthesize better, cleaner fuels from scratch. (See Oil tax defeated.)

Of course, any combustion fuel, no matter how cleanly created, still produces climate-changing carbon dioxide when it burns. Paul argues that being headquartered in eco-friendly California has put Chevron at the cutting edge of clean refining technology.

But this month, voters in the state are deciding whether to levy a $4 billion tax on oil companies to fund clean-energy research. Paul argues that Chevron's own R&D efforts have a better shot at getting new energy sources to market, thanks to the company's distribution infrastructure. Business 2.0 sat down with Paul to hear how Chevron plans to fuel the future.

/Yeah, sure. Interview follows...

Hmmm. Edit to add: I see that this CNNMoney/Fortune/Business2.0 site links on right now to some features probably worth looking into, even if only for cynical and/or positively critical purposes (Though mostly skeptical, I don't necessarily knee-jerk-knock all of it) such as:

Go Green, Get Rich - "Meet the companies tackling nine of humanity's biggest problems -- and making millions saving us from ourselves.";
8 technologies to save the world - "These futuristic projects promise to make the world greener, while making entrepreneurs some green.";
and a blog: Green Wombat: Can Technology Save The Planet?

[ozymandius]

6. Home Depot considers sale of HD Supply

ATLANTA - The Home Depot Inc., the world's largest home improvement store chain, distanced itself further from the strategies advanced by former Chief Executive Bob Nardelli as it said Monday it will consider shedding its division serving contractors, homebuilders and other business customers. Its shares rose on the news.

Some analysts said the decision to possibly sell Home Depot Supply could benefit the company by allowing it to focus on generating value for shareholders, while others suggested it could put the onus back on the company's retail side, where it faces tough competition from Lowe's.

The announcement followed a decision earlier this month by the Atlanta-based company to give a seat on its board to an investment group that wants Home Depot to consider, among other things, a leveraged buyout of the entire company as a way to generate shareholder value.

more

[ozymandius]

7. Honda to recall 45,335 Civic hybrids worldwide

TOKYO (Reuters) - Honda Motor Co. (7267.T) said on Tuesday it would recall 45,335 Civic hybrid cars globally to fix a faulty voltage converter that could cause a short circuit and stop the engine.

No accidents have been reported from the defect, a spokesman said.

The total includes 31,123 units to be recalled in the United States and 7,219 in Japan.

more

[54anickel]

17. Duh-what?!?! A leveraged buyout to generate shareholder value?!?!?!

Is that how it's done now? :shakesheadincompletebewilderment:

[Robbien]

23. Very little else has been keeping the market up

the last two years IMHO.

Traditional market factors suchs as jobs, wages, factory orders, inventories, etc. have had little effect on which way the market goes. But have rumors of a big buyout and the market soars. If it gets quiet on the leveraged takeover front, market dips.

[54anickel]

8. Great toon Ozy! Yes, I'm up early for a change...I've got to head out the

door shortly again today. I get to babysit the grand-nephews again today, their regular sitter is sick.

[ozymandius]

10. Good morning 54anickel.

:donut: :donut: :donut:

Tom Toles is great, eh? Good to see you here so early. Have a wonderful day with your nephews!

:hi:

[54anickel]

12. Oh I will. I had them here yesterday, today I'm headed to their house -

much easier for both napping and playing that way. One turns 2 this Thursday and the other is around 9 months. They're a handful, but fun.

[ozymandius]

9. Chrysler to close 2 plants in Q3 2008: magazine

FRANKFURT (Reuters) - DaimlerChrysler's (DCXGn.DE) loss-making Chrysler division will close two manufacturing plants in the third quarter of 2008 in an effort to boost capacity utilization and stem costs, a German magazine reported.

Citing industry sources, Auto Motor und Sport said Daimler will close the Newark, Delaware plant in the United States where the Dodge Durango and Chrysler Aspen SUVs are built and the St. Louis North factory in Missouri that manufactures the Dodge Ram full-size pickup truck.

The magazine released a summary of the report before publication on Wednesday, when the world's fifth-biggest carmaker is set to release details of a reorganization plan for Chrysler.

-cut-

Speculation ahead of the restructuring plan's announcement had mainly centered on at least two plant closures and 10,000 job cuts. Chrysler employed 82,330 staff at the end of September.

more

[54anickel]

11. BofA aims new credit card at illegal immigrants: report

http://www.reuters.com/article/ousiv/idUSN1344790520070213

NEW YORK (Reuters) - Bank of America Corp. has begun offering credit cards to customers without Social Security numbers, typically illegal immigrants, the Wall Street Journal reported on Tuesday.

In recent years, banks across the country have been offering checking accounts and even mortgages to the nation's fast-growing ranks of undocumented immigrants, most of whom are Hispanic, the paper said, adding these immigrants generally have not been able to get major credit cards.

The new Bank of America card is open to people who lack both a Social Security number and a credit history, as long as they have held a checking account with the bank for three months without an overdraft, the Journal said.

Bank of America tested the program last year at five branches in Los Angeles, and last week expanded it to 51 branches in Los Angeles County, home to the largest concentration of illegal immigrants in the U.S., the Journal said.

bit more...

Wonder what the rate and late fees will look like? :shrug:

[54anickel]

13. Thank you to the secret admirer for the heart this morning.

:hug: :hi: :toast:

[ozymandius]

14. Johnson &amp; Johnson informs authorities on improper payments

New Brunswick, New Jersey - US pharmaceutical and medical devices company Johnson & Johnson on Tuesday told the US Department of Justice and the Securities and Exchange Commission (SEC) about improper payments believed to have been made by foreign subsidiaries, the company said.

The payments might have been made in two small-market countries in relation to the sale of medical equipment. Johnson & Johnson did not say which countries or products were involved.

The manager in charge, Michael J Dormer, has retired from the company with immediate effect.

-cut-

The medical devices & diagnostics department offers everything from artificial joints to blood-sugar testing devices.

http://news.monstersandcritics.com/business/news/article_1263123.php/Johnson_&amp_Johnson_informs_authorities_on_improper_payments

[UpInArms]

53. J&J Executive Departs After Company Reports Improper Payments

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_6UECHmmIKU&refer=home

Feb. 13 (Bloomberg) -- Johnson & Johnson, the world's largest maker of health-care supplies, said subsidiaries in two countries made improper payments in marketing medical devices, and the executive in charge stepped down.

The payments violated company policies and may also break rules under the Foreign Corrupt Practices act, the company said in a statement yesterday. J&J said it voluntarily reported the payments in ``two small-market countries'' to the U.S. Justice Department and the Securities and Exchange Commission.

Michael Dormer, 54, the worldwide chief of medical devices and diagnostics, retired and took ``ultimate'' responsibility. Dormer was in charge of operations that generated $20.3 billion in revenue, or almost 40 percent of last year's total sales. The company's device business, the biggest in the world, makes Cypher heart stents and DePuy artificial hip and knee joints.

``J&J management probably had to find a way to make it clear to authorities that this matter is being taken seriously, potentially pre-empting federal enforcement action,'' said Glenn Reicin, an analyst with Morgan Stanley in New York, in a research note.

<snip>

Companies convicted of a felony can be barred from selling medicines to government health programs for the elderly and poor, including Medicare, which could represent millions of dollars in lost sales.

...more...

[54anickel]

15. Wishful infeasibility: Fine art and the bubble in money

http://www.prudentbear.com/articles/show/348

"...If you like your theatre absurd, keep an eye on the fine-art market in London..."


"Good art speaks truth, indeed is truth, perhaps the only truth," wrote Iris Murdoch in The Black Prince – and seeing how Peter Doig's White Canoe (1990) was deemed good enough to fetch $11.3 million at auction last Wednesday, that must mean the only truth today is inflation.

Sotheby's (BID) midweek sale of contemporary art in London netted £45.7 million all told – some US$90 million. Indeed, it was "the most successful contemporary sale ever staged in Europe," as the auction house gasped in its press release. Doig's "early masterpiece" set a new cash record for a work by a living European artist, bagging five times its reserve.

Altogether the evening's sales ran up to 60% higher than the pre-auction estimates of only four weeks before. How's that for art appreciation!

It proved quite a week for London's wealthiest art lovers and their dealers, in fact. Last Monday, Sotheby’s achieved its highest value auction ever in Europe, knocking down Impressionist & Modern Art for a total of $173 million. On Tuesday night, Christie's achieved $177 million with its own Impressionist and Modern auction. Wednesday brought Sotheby's Contemporary sale, followed by Christie's auction of Post-War and Contemporary art on Thursday.

That netted $138 million, including a new Francis Bacon record, nearly double the previous high of $30 million hit in November.

Four days...one city...$578 million. That's more than gross inflows for the entire UK mutual fund industry over the same period. But don't forget Sotheby's commission on top! :wow:

more...

[Ghost Dog]

71. viz:

[ozymandius]

16. House panel advances tax cut to win wage raise

WASHINGTON (Reuters) - A $1.3 billion small-business tax cut package aimed at winning the first minimum wage increase in more than a decade advanced in the U.S. House of Representatives on Monday.

The tax-writing Ways and Means Committee by voice vote approved the bill that congressional leaders say is needed to win Republican support for raising the minimum wage to $7.25 per hour over two years from $5.15 per hour.

Democrats are anxious to deliver on a key campaign promise and the House is expected to vote on the bill as early as Tuesday. The closely divided Senate earlier this month agreed to the wage increase only after adding some $8.3 billion in small-business tax cuts.

more

[ozymandius]

18. FTSE shrugs off real estate weakness

London equities moved higher on Tuesday despite an uncertain outlook from British Land hampering the real estate sector.

The property group fell 2.2 per cent to £16.41 as it admitted "sentiment and money flows" in the market were "harder to call".

British Land posted a fall in net asset value to £16.10 (from £16.24 three months ago) due to a weak performance from its shopping centres and a higher-than-expected cost of converting to a real estate investment trust.

-cut-

By late morning, the FTSE 100 was 13.7 points higher at 6,367.1 and the FTSE 250 was 22.6 points firmer at 11,477.5.

http://news.yahoo.com/s/ft/20070213/bs_ft/fto021320070636054467

[Ghost Dog]

32. Europe moves higher as earnings dominate

http://www.ft.com/cms/s/aef90d0a-bb3e-11db-afe4-0000779e2340.html

European equity markets rallied on Tuesday following a number of strong earnings, but gains were fragile after the previous session’s losses.

By mid morning, the FTSE Eurofirst 300 was up 0.1 per cent to 1,535.12, Frankfurt’s Xetra Dax gained 0.4 per cent to 6,882.86, the CAC 40 in Paris added 0.4 per cent to 5,664.97 and London’s FTSE !00 climbed 0.2 per cent to 6,366.4.

UBS, the Swiss investment bank, reported record full-year profits that beat expectations thanks to strong growth in its wealth management unit. The company raised its dividend and announced a SFr16bn share buyback.

The shares however, fell 1.1 per cent to SFr78.75 as investors focused on the company’s growing cost base following a string of acquisitions and the addition of 8,500 new staff last year.

Norway’s Renewable Energy Corp (REC) gained 4.5 per cent to NKr151.50 after reporting a better-than-expected 86 per cent jump in fourth-quarter core earnings. The maker of solar power equipment said a number of one-off items had contributed to the result, but the outlook for further strong growth looked good, REC said.

/...

[Ghost Dog]

83. Strong close for bourses as earnings dominate

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39126.4947222222-889377630&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Strong earnings figures helped European equity markets end the trading day higher on Tuesday, and there was positive read across from Wall Street where US stocks made early gains. French telecoms and construction group Bouygues gained 2.2 per cent to €54.20 after reporting a 10 per cent rise in 2006 revenues, beating expectations, helped by sales growth at its telecoms unit. By the close, the FTSE Eurofirst 300 gained 1.49 points, or 0.1 per cent, at 1,534.64, while Frankfurt’s Xetra Dax gained 35.89 points, or 0.5 per cent, to 6,895.34 and the CAC 40 in Paris gained 38.74 points, or 0.7 per cent, at 5,682.69.



European shares end higher, helped by metals

LONDON, Feb 13 (Reuters) - European shares closed higher on Tuesday, underpinned by upbeat U.S. stocks and metal firms, but worries about interest rates and a weakening retail estate sector capped the upside.

The FTSEurofirst 300 <.FTEU3> index of top European shares ended 0.1 percent higher at 1,534.64.

Britain's FTSE 100 .FTSE was up 0.5 percent, France's CAC 40 rose 0.7 percent and Germany's DAX <.GDAXI> firmed 0.5 percent.

"I think that it's just a rebound because we got a drop yesterday," said Jean-Luc Buchalet, strategist at Jacques Chahine Finance. "Some people are waiting for a consolidation in the next few days or few weeks."

Carrefour (CARR.PA: Quote, Profile , Research), the world's second largest retailer, was among the top gainers, up 3.9 percent after Chairman Luc Vandevelde's purchase of 215,000 shares in the company was seen as a vote of confidence in its future.

Metal firms rose on higher copper prices, also helped by a newspaper report that BHP Billiton Ltd. (BHP.AX: Quote, Profile , Research) (BLT.L: Quote, Profile , Research), and Rio Tinto Ltd. (RIO.AX: Quote, Profile , Research) (RIO.L: Quote, Profile , Research) were studying takeover plans for U.S. aluminum producer Alcoa Inc (AA.N: Quote, Profile , Research). But sources told Reuters BHP Billiton was not currently working on a bid.

[Ghost Dog]

84. FTSE closes higher as miners rally

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39126.4906828704-889377179&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities moved higher on Tuesday as market sentiment was helped by news of an easing of price pressures as the inflation rate slowed to 2.7 per cent last month, from 3 per cent in December. The news came ahead of Wednesday’s release of the key Bank of England quarterly inflation report. Mining stocks were among the big gainers as the copper price firmed. Antofagasta rose 3.4 per cent to 477½p and BHP Billiton firmed 2.6 per cent to 1076.5p. However, British Energy lost a further 3.3 per cent to 411p as the power group invited potential partners to submit plans to build new nuclear power stations and said repairs to its existing facilities would be completed by the end of March. By the end of trading, the FTSE 100 was 28.3 points, 0.5 per cent, higher at 6,381.8 and the FTSE 250 was 20.9 points, or 0.2 per cent, firmer at 11,475.7.

UK's FTSE closes up as miners shine on merger hopes

LONDON, Feb 13 (Reuters) - Britain's leading share index ended at its best levels on Tuesday, boosted by rising miners, such as Antofagasta (ANTO.L: Quote, Profile , Research), as investors bet on consolidation in the sector.

The gain in mining shares, one of the FTSE 100's .FTSE most heavily weighted sectors, offset falls in property stocks after caution from British Land (BLND.L: Quote, Profile , Research) caused investors to rethink the sustainability of the boom in the British market.

"At the margin it could be positive for equities. So much money has been going into property it may come back into equities as bonds aren't looking great," said Roger Cursley, UK strategist at Investec.

The leading index of UK shares ended the session up 28.3 points, or 0.5 percent, at 6,381.8, with the broader market benefiting from expectations that interest rates have peaked after UK consumer prices slowed much more than expected in January.

Gains in mining stocks accounted for more than a third of the FTSE 100's advance, a move also helped by firmer gold and copper prices as well as on bid speculation.

The Times reported BHP Billiton (BLT.L: Quote, Profile , Research) and Rio Tinto (RIO.L: Quote, Profile , Research) had drawn up separate plans for a $40 billion takeover of U.S. aluminium producer Alcoa Inc. (AA.N: Quote, Profile , Research).

BHP and Rio Tinto, which are listed in both Australia and London, declined to comment on the report, as did Alcoa, which has a market capitalisation of about $28.5 billion.

/...

[54anickel]

19. Spillover Risks (Roach)

http://www.morganstanley.com/views/gef/archive/2007/20070212-Mon.html

One of today’s great paradoxes is the perceived lack of spillovers. Macro theory stresses interrelationships within economies, between markets, and across borders. Yet most financial market participants now believe in the theory of containment -- that disruptions in one sector, one market, or even one economy can, in effect, be walled off from the rest of the system. Whether it’s the bursting of the US housing bubble, carnage in sub-prime mortgage lending, or a slowing of Chinese investment, these events are quickly labeled as “idiosyncratic” -- unique one-off disturbances that are perceived to pose little or no threat to the larger whole. The longer a seemingly resilient world withstands such blows, the deeper the conviction that spillover risk has all but been banished from the scene. Therein lie the perils of a dangerous complacency.

The post-housing-bubble shakeout of the US economy is an important case in point. There’s little disagreement on the wrenching adjustments that have already unfolded in this sector -- a 25% drop in new home sales, a 35% plunge in housing starts, a 16% annualized decline in homebuilding activity over the past three quarters, and a reduction of 110,000 jobs in the residential construction industry from its recent peak. But the broader US economy barely flinched -- at least, so far. Even in the face of a mild slowdown of 2.3% annualized real GDP growth in the two middle quarters of 2006, the economy still expanded by 3.4% over the four quarters as a whole. Such are the footprints of what many call the “two tier” economy -- a weak housing sector (maybe autos too) accompanied by persistent resilience elsewhere.

snip>

Modern-day macro is a theory of interdependence -- linkages both within and between economies. As such, spillovers are the norm, not the exception. Consequently, if an economy is hit with a major shock -- like the bursting of the US housing bubble or a cooling off of China’s investment surge -- it is very difficult to contain the damage before it spreads elsewhere in the global macro system. The best containment strategy is autonomous support to internal demand -- especially private consumption. But even in those cases, it would take an acceleration of growth in the resilient sector(s) to offset the impacts of slower growth in the shocked sector. In my view, that’s highly unlikely for either the US or China.

The biggest risk of all may be the geopolitical spillover. At a recent Morgan Stanley client conference, Middle East security expert Kenneth Pollock underscored the risk of cross-border spillovers in the aftermath of civil wars. He argues that was true in the case of recent civil wars in Afghanistan, the Congo, Lebanon, Somalia, and Yugoslavia, and could well occur in response to the current civil war in Iraq (see Daniel Byman and Kenneth Pollack, “Things Fall Apart: Containing the Spillover From an Iraqi Civil War,” Brookings Institution Analysis Paper Number 11, January 2007). Pollack warned that as Iraq veers out of control, pan-regional spillover effects in Iran, Israel, Saudi Arabia, Jordan, Kuwait, and Turkey could well be unavoidable. Such a possibility could not only further destabilize an already volatile part of the world but could wreak havoc with oil prices and the broader global economy.

Financial markets have learned to shrug off spillover risks in recent years. An ample cushion of excess liquidity has been key in defusing the potential impacts of massive current account imbalances, soaring oil prices, the bursting of the equity bubble, and an escalation of terrorist activity. Most investors are now of the view that spillover risk is inconsequential for such a Teflon-like world. History does not treat such complacency kindly.

more...

[ozymandius]

20. GE said to push weaker smog controls

NEW YORK (Reuters) -- General Electric Co., which is running a marketing campaign promoting itself as environmentally friendly, has pushed to weaken smog controls for railroad locomotives in rules about to be proposed by the Environmental Protection Agency, the Wall Street Journal reported Tuesday.

The rules, which could take effect between 2011 and 2017, are designed to cut smog and soot levels and would replace standards adopted in 1997, the paper said, adding that a proposal from the EPA could come this month.

The conglomerate told the EPA, in a December letter reviewed by the Journal, that catalytic converters used to meet EPA emissions reductions imposed earlier on trucks and off-road construction equipment have "fundamental limitations" that make their durability on locomotives unlikely, the paper said.

-cut-

The EPA wants a limit of 1.3 grams per horsepower per hour's operation of nitrogen oxides, which cause smog, the Journal said. GE is advocating a 1.9-gram limit and said in the December letter that achieving that level would require "significantly high-risk technology breakthroughs," the paper said.

http://money.cnn.com/2007/02/13/news/companies/bc.ge.epa.reut/index.htm?postversion=2007021306

[UpInArms]

21. dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 84.91 Change -0.21 (-0.25%)

Dollar Traders Prep For Busy Week

http://www.dailyfx.com/story/currency/eur_news/Dollar_Traders_Prep_For_Busy_1171312065499.html

Though Monday’s calendar was issuing only a trickle for fundamental data flow, a healthy combination of anticipation for the coming day’s events and relief from the weekend’s G7 gathering kept the dollar in motion. The greenback's move against the benchmark euro characterized the general sentiment across the majors.

From an intra-day high near the range top at 1.3040, the EURUSD dropped over 100 points. Acting as a near-perfect hedge, USDCHF rallied at almost exactly the same time for its own 100-point move to 1.2555. Unable to escape the broad dollar buying, GBPUSD was driven 130 points lower to mark a monthly low at 1.9440. Looking back, the only pair to shirk the trend was USDJPY which topped out around 122.10 before retracing to 121.55.

Between price action and the official economic calendar, the former offered the true tale of action for the US currency. The only officially scheduled indicator due for release today was the government’s monthly budget statement which jumped to a $38.2 billion surplus last month. This was below the market consensus and greater than December’s number; though any combination of statistics from this report would hardly impact the dollar. Instead, FX traders were more concerned with the impact of the G7 meeting from this past weekend and a sharp drop in crude oil prices on position traders’ greenback valuations. The meeting of the finance ministers and central bankers from the seven largest industrial economies certainly carried with it a great deal of event risk. The dollar was not under specific pressure, but rather the entire carry trade strategy. However, with only ECB President Trichet and Japan’s Finance Minster Koji Omi delivering a weak warning against loading up on “one sided bets” and positioning against Japan’s economic strength, there seemed little to upset the balance of the lucrative carry.

Elsewhere, energy prices are beginning to exert their influence outside the commodity bloc. After running up to $60 per barrel in the past few weeks, crude prices made a sharp turn Monday. The drop was triggered by a report from OPEC head of research that foresaw a 300,000 barrel per day oversupply of crude in the second quarter. The next meeting for the energy group is scheduled for March 15th, yet with the previous production cuts not yet fully engaged, few are expecting additional reductions. Reverting back to the US calendar, event risk is back on the table for the dollar traders over the coming days. Wednesday will mark the true fundamental start to the week as Fed Chairman Ben Bernanke puts in his testimony to the Senate. With the new Democratic majority in Congress looking to win over the public’s support, there will likely be a lot of back and forth over the strength of the economy. Later on, the market will keep a close on the number of housing releases scheduled for the final two days of the week and the manufacturing data due on Thursday. Altogether, this data will test whether currency traders believe an economy is as strong as its weakest sector.

...more...

US Dollar - Bernanke and Retail Sales to Drive Activity This Week

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar___Bernanke_and_1171319757709.html

US Dollar - With the G7 meeting behind us, traders have taken the US dollar higher once again. With no major US data on the calendar, today’s move is nothing more than a relief rally. Any official criticism from the G7 finance ministers about the Japanese Yen would have been negative for the US dollar since the high yielding currency would have fallen victim to carry trade liquidation. Instead, the combination of a lack of an official mention and falling oil prices has helped to push the dollar higher once again. The US fiscal condition continues to improve as the US posted a $38.2 billion budget surplus in the month of January. With a busy economic calendar ahead of us, the EUR/USD runs a strong chance of breaking out of its 1.2860 to 1.3060 range. The marquee events this week are on Wednesday when we get retail sales for the month of January and Bernanke’s comments on the economy and monetary policy. The central bank head has been tight lipped about his views on growth and inflation since the last FOMC statement. Although the Federal Reserve will most likely acknowledge the stronger growth that we have seen recently, they may opt to explain their cautiously hawkish statement from the last meeting. The concerns center on the housing market as they have previously indicated that it may be too early to tell whether the sector has stabilized. The odds are for a more dollar positive statement but any further hesitancy could prevent the dollar from rallying. In the meantime we have the trade balance due for release tomorrow. The deficit is expected to increase due to a higher oil import bill.

...more...

[Ghost Dog]

34. Eurozone growth beats expectations

http://www.ft.com/cms/s/00dd7ca4-bb4f-11db-afe4-0000779e2340.html

Investors were braced for further interest-rate rises in the eurozone after data published on Tuesday showed stronger than expected economic growth in the bloc in the last three months of 2006.

Gross domestic product in the then 12-member currency bloc rose 0.9 per cent in the fourth quarter, half as much again as forecast by analysts, and more than the 0.5 per cent rise seen in the third quarter.

With Germany, France and Italy doing well in the run-up to Christmas, economists expect a carry-over into 2007 – heightening worries at the European Central Bank about big price and wage rises.

Jean-Claude Trichet, ECB president, said earlier this month that he was “vigilant” about inflation, a term he has used in the past to signal that interest rates will rise at the next month’s meeting of ECB governors.

Analysts said Tuesday’s data increased the chances of a quarter-point rise in rates to 3.75 per cent at the start of March and opened the way for another upward move in the following months.

/...

[Ghost Dog]

35. Euro up on strong German GDP; ZEW, EZ growth data eyed

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-02-13T091912Z_01_L1394941_RTRIDST_0_MARKETS-FOREX-UPDATE-3.XML

LONDON, Feb 13 (Reuters) - The euro rose against the dollar on Tuesday after a strong German and French fourth quarter growth data, as investors awaited further European data and a key German sentiment survey for more clues on the monetary policy outlook.

The yen bounced from Monday's record low against the euro and rose against the dollar as investors booked profits on broader yen selling after last weekend's G7 meeting ahead of Japanese GDP data on Thursday and the Bank of Japan's policy meeting next week.

A flash estimate of Germany's fourth quarter gross domestic product showed growth accelerated to a stronger than expected 0.9 percent, giving a yearly rate of 3.5 percent.

National data from Italy and France also beat forecasts, opening the way to a firm reading of euro zone GDP at 1000 GMT.

/...

[Ghost Dog]

41. ZEW Economic Sentiment Indicator signals growth will pick up

http://www.finfacts.com/irelandbusinessnews/publish/article_10009063.shtml

ZEW Economic Sentiment Indicator for Germany in February signals growth will pick up speed again in the second half of 2007



The ZEW Indicator of Economic Sentiment for Germany continued its recovery in February 2007. Compared with minus 3.6 points in January, the indicator's current level of plus 2.9 points is still far below its historical average of 33.3 points.

The rise of the indicator signals that the German economy will pick up speed again in the second half of 2007. Analysts thus seem to assume that domestic investment spending will develop dynamically and that consumer spending will stabilize. Furthermore, good news on economic growth and consumer spending in the US has improved the international business climate for German companies.

/...

[Ghost Dog]

42. French economy grew by 2 per cent in 2006

http://rawstory.com/news/2007/French_economy_grew_by_2_per_cent_i_02132007.html

Paris- The French economy most likely grew by 2 per cent in
2006, at the bottom end of the government's forecast, the state's
statistical agency INSEE said Tuesday in its first estimate of the
figure.

The French economy rebounded in the fourth quarter, expanding by
0.6 to 0.7 per cent after a third quarter where gross domestic
product (GDP) was stagnant, INSEE said. That result surprised
analysts, who had expected a more modest gain.

/..

[Ghost Dog]

67. Royal stirs reaction with 100-point vision

http://www.ft.com/cms/s/d680bb5a-bad2-11db-bbf3-0000779e2340.html

Ségolène Royal received as many brickbats as backslaps on Monday. Business groups, economists and political opponents complained about the likely cost of the French socialist candidate’s 100-point manifesto, while commentators cheered the renewed momentum it gave her presidential bid.

Eric Besson, Socialist economic spokesman, said her plans to increase the minimum wage, boost pensions, raise spending on education, health and justice, while upping state hand-outs for research, first-time house buyers and the young would cost up to €35bn.

Mr Besson said the manifesto, including expected savings and extra income, would keep the overall tax burden stable and cut France’s debts.

Libération, the leftwing newspaper, said: “Ségolène Royal has found her voice,” echoing the view of most commentators that her two-hour speech on Sunday had relaunched her campaign.

But analysts said she looked set to continue the Keynesian tax-and-spend habits of the French left.

/...

[Ghost Dog]

68. Royal in rallying call for shift to left

http://www.ft.com/cms/s/4669445a-ba3d-11db-89c8-0000779e2340.html

Battle lines have been drawn for France's presidential election after Ségolène Royal sounded the rallying call yesterday for a national shift leftwards.

Ms Royal, the Socialist candidate, made a speech casting herself as defender of the country's generous social model.

Laying out an interventionist and protective economic vision, she promised to increase the minimum wage, massively boost research spending and give the state more control over banks and the media. She also pledged to merge EDF and Gaz de France into a single nationalised utility.

A Royal presidency would scrap laws that make it easier for small companies to hire and fire, put fiscal penalties on companies that pay dividends rather than retain profits and demand that the European Central Bank be obliged to make economic growth central to monetary policy.

But the biggest cheer from the 10,000 supporters gathered in a Paris conference centre came as Ms Royal promised: "As a woman, I want all children born in France to have what I wanted for my own children."

/...

[Ghost Dog]

81. Dollar falls vs euro on trade data, eurozone growth

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-02-13T143557Z_01_N13499805_RTRIDST_0_MARKETS-FOREX-UPDATE-6.XML

NEW YORK, Feb 13 (Reuters) - The dollar fell sharply against the euro on Tuesday after a wider U.S. trade deficit in December raised worries about downward revisions to growth.

Meanwhile, better-than-expected euro zone growth in the final three months of 2006 helped push the euro back above the $1.30 threshold and bolstered expectations for another interest rate hike next month from the European Central Bank.

"The trade data does raise concerns, as we've seen a string of strong U.S. data and maybe now we're seeing some holes creeping in," said Steven Butler, director of foreign exchange at Scotia Capital in Toronto.

Doug Smith, chief economist for the Americas at Standard Chartered in New York, said the trade numbers "might slice a little" off U.S. gross domestic product, which he said could get revised down 1.2 to 1.3 percentage points.

The government's first estimate saw the U.S. economy growing at a hearty 3.5 percent pace in the fourth quarter of 2006.

Early in New York, the euro was up 0.5 percent at $1.3030 <EUR=>. Against sterling, it was up 0.7 percent at 0.6698 pence <EURGBP=> after UK consumer price data fell sharply last month and raised questions about future Bank of England rate hikes.

/...

[Ghost Dog]

44. Euro-zone Economy Accelerates On Italian Improvement

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070213\ACQDJON200702130642DOWJONESDJONLINE000283.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.na

LONDON (Dow Jones) -- Economic growth in countries that use the euro jumped 3.3% in the fourth quarter, according to statistics released Tuesday, after Italian growth advanced sharply from the last quarter and as Germany's acceleration continued.

During the fourth quarter, the euro-area economy grew 0.9% in the fourth quarter from the third quarter, or up 3.3% annually. That puts the European economy nearly on par with the 3.4% annual growth recorded in the U.S. during the same time frame.

The euro-area grew at a 2.7% annualized clip in the third quarter.

Those figures are for the 12 countries that used the euro in 2006; statistics from new entrant Slovenia weren't included, said the Eurostat statistics office.

The big surprise to economists was the 2.9% annual growth posted by Italy. The euro-zone's third-largest economy only grew 1.7% in the third quarter.

"Indications so far available suggest that final domestic demand (in Italy) should be on a healthy tone, with solid growth in household spending and a prompt recovery in fixed investment," said economists from UniCredit, an Italian bank.

In Germany, Europe's leading economy, GDP expanded at a 3.7% rate, its best of the year, as the world's top exporter begins to see domestic contributions as its unemployment rate declines.

/...

[Ghost Dog]

45. Dutch economy grew 2.9 per cent in 2006

http://rawstory.com/news/2006/Dutch_economy_grew_2_9_per_cent_in__02132007.html

Amsterdam- The Dutch economy grew by 2.9 per cent in 2006, almost twice as fast as in 2005, with exports, household consumption and investment driving much of the growth, the Central Bureau for Statistics reported Tuesday. In its initial estimate for the year, the CBS said that as in 2005, exports had formed the basis of the growth in the economy, but that in 2006, private consumption and investment had helped boost activity.

The number of jobs grew by 105,000, or 1.4 per cent, compared with 2005, reversing a trend over the previous two years of fewer jobs.

Exports of goods and services grew by 7.5 per cent, with re- exports rising faster than goods and services produced in the Netherlands for export.

Imports also rose, driven by demand for durable goods and for investment.

Dutch households spent 2.4 per cent more than in 2005, with the rise considerably higher than in the previous four years.

Investments rose 6.1 per cent, reflecting increased business confidence.

/.

[Ghost Dog]

46. Yen Falls To Euro Tuesday Morning Amid Slew Of GDP Data From Europe

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070213\ACQRTT200702130656RTTRADERUSEQUITY_0310.htm&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - The yen lost ground to the euro in early trading Tuesday morning, giving back of Monday evening's advance. A retreat beginning in the overnight hours left the yen at 158.06, before the Japanese currency stabilized somewhat to trade at 157.83 as of 6:30 am Eastern Time. A slew of European GDP data was released Tuesday morning, including numbers from Germany, Italy, France and the Euro-Zone.

[Ghost Dog]

65. The Short View: Blowing raspberries at the G7

http://www.ft.com/cms/s/dc68cbf2-b7a8-11db-bfb3-0000779e2340.html

There are few things that traders like better than blowing a raspberry at the Group of Seven industrialised leaders. Monday was a case in point.

On Saturday, G7 financial leaders solemnly opined that “Japan’s recovery is on track” – and suggested that “the implications of these developments will be recognised by market participants and ... incorporated in their assessments of risks”. Translated from policy speak, this means the G7 wants traders to stop betting on a never-ending yen decline.

But when markets opened on Monday, the Japanese currency duly weakened further, touching Y122.09 to the dollar and Y159.00 to the euro. On a trade-weighted basis, that leaves it at 21-year lows.

This suggests that investors do not believe the G7 is ready to turn its woolly rhetoric into tangible intervention. Right now, that seems a fair bet. After all, the yen has left global policymakers trapped between a rock and a hard place. Politicians in regions such as Europe want the yen to rally, to help their manufacturers; but at the same time, regulators know that if a sharp rally does occur, this could risk triggering financial shockwaves. This is because a key reason behind recent yen weakness is that the carry trade – or the practice of borrowing in low-yielding currencies to invest in higher-return assets – has proliferated in the past three months.

This has swelled global liquidity, flattering asset markets around the world. But if the yen suddenly strengthens – say, due to G7 intervention – carry trades might be unwound, which might even spark a wave of global risk aversion.

Given this, it is not surprising that G7 policymakers prefer to pray for a miracle – namely that the yen will soon stealthily appreciate of its own accord, thus prompting an “orderly” unwind of carry trades.

But that seems a brave hope, given the apparent size of these trades. After all, the lower the yen falls, the greater the risk of a financial whiplash if – or when – it changes course. Investors in almost any asset class, from Australian stocks to Zambian bonds, should be keeping a close watch on events in Japan.

/.

[Ghost Dog]

72. Yen Gains as Economy Expected to Grow Most in Almost 3 Years

http://www.bloomberg.com/apps/news?pid=20601083&sid=anDk_PYSLiGM&refer=currency

Feb. 13 (Bloomberg) -- The yen gained the most in more than a week against the dollar as a government report this week could show the Japanese economy grew the fastest in almost three years, suggesting the Bank of Japan may boost borrowing costs next week.

The Japanese currency also increased versus the euro as North Korea said it will shut down its Yongbyon nuclear reactor within 60 days. The yen was higher after a government report showed the U.S. trade deficit increased more than economists forecast in December. This weekend's Group of Seven meeting didn't produce a statement regarding the yen's recent weakness.

``A number around consensus tomorrow indicates that the BOJ will hike rates, and that's driving yield gaps to narrow after the market failed to follow through on the yen weakness coming out of the G-7 meeting,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York.

The yen gained to 121.32 against the dollar at 10:45 a.m. in New York, from 121.94 yesterday. It traded at 157.84 against the euro from 158.13. The dollar traded at $1.3011 per euro, from $1.2966.

A report will show Japan's economy expanded at an annualized 3.8 percent rate in the fourth quarter, according to the median estimate in a Bloomberg survey of 38 economists. The Cabinet Office releases the figures at 8:50 a.m. in Tokyo on Feb. 15.

/..

[Ghost Dog]

48. Sterling falls, rate futures, stocks rise on CPI

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=ukPoundRpt&storyID=2007-02-13T093751Z_01_L13223433_RTRIDST_0_STERLING-FALLS-RATE-FUTURES-STOCKS-RISE-ON-CPI.XML

LONDON, Feb 13 (Reuters) - Sterling hit one-month lows against the dollar and euro on Tuesday, while UK interest rate futures and stocks rose after UK consumer inflation came in weaker than expected in January. The UK January CPI rose 2.7 percent on the year, against a forecast for a rise of 2.9 percent.

"The data across the board came in weaker than expected. Certainly that will dampen expectations of another near-term rise in interest rates," said Geraldine Concagh, economist at AIB Group Treasury in Dublin.

Sterling fell to a one-month low of $1.9425 <GBP=>, against pre-data levels around $1.95. It also hit one-month low of 66.90 pence per euro <EURGBP=>.

Short sterling interest rate futures rallied as much as 7 ticks while March long gilt futures <FLGH7> jumped back into positive territory, having been 16 ticks lower before the data

/..

[Ghost Dog]

50. Gold price steadies as dollar's clout fades

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-02-13T061552Z_01_SYD206699_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-1.XML

SYDNEY, Feb 13 (Reuters) - Gold steadied on Tuesday after sharp declines the previous day as the U.S. dollar lost some of its clout against other currencies.

Gold see-sawed by a dollar or so across Asia, just above the widely marked technical support level of $660 an ounce, countering some expectations that geopolitical worries might drive bullion towards $700.

At 0600 GMT, spot gold <XAU=> was quoted at $662.50/663.20 an ounce versus $663.45/$4.20 in late New York trading.

Investors this week were initially seen putting more money into gold as tensions were seen increasing in the Middle East after European Union foreign ministers agreed on sanctions on Iran to raise pressure over its nuclear programme.

Gold rose to $668.20 an ounce in Monday trading, prompting forecasts of prices zooming as high as $700 an ounce before the rally fizzled and prices recoiled.

"What we saw was a classic bout of profit taking, which ended the run," a dealer said.

/...

[Ghost Dog]

51. UPDATE 2-Gold price hovers near 7-month peak

http://today.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-02-13T114608Z_01_L13872542_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-2.XML

LONDON, Feb 13 (Reuters) - Gold hovered just below seven-month highs on Tuesday, recouping losses from the previous day, with oil prices and the dollar seen key to steering the precious metal back up above $700.

Investors are also taking another look at gold due to increased tensions in the Middle East, while price charts are sending out positive signals to funds who use such tools to trade.

At 1136 GMT, spot gold <XAU=> was quoted at $665.40/666.10 an ounce, versus $663.45/$4.20 in late New York trading.

Gold rose to $668.20 on Monday, prompting forecasts of prices zooming as high as $700 an ounce, before the rally fizzled and prices recoiled.

Many analysts think gold needs to consolidate recent gains and maybe even retrace, before launching an attack on last July's peak at $676 and above.

/...

Hi all & thanks for heart! Will think again about donating soon. Markets moving but lunchtime here rigt now... :hi:

[Ghost Dog]

82. UPDATE 3-Gold sets fresh 7-month peak, sentiment upbeat

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-02-13T154042Z_01_L13872542_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-3.XML

LONDON, Feb 13 (Reuters) - Gold eked out a new seven-month high on Tuesday, helped by a weaker dollar and firmer oil prices, although prices may still need to consolidate recent gains before launching an attack on $700.

Sentiment was generally upbeat, with banks reporting that investors were taking another look at gold due to increased tensions in the Middle East, while price charts were sending out positive signals to funds who use such tools to trade.

Gold has risen over 10 percent since a low point near $600 in early January.

At 1530 GMT, spot gold <XAU=> was at $664.40/665.10 an ounce, versus $663.45/$4.20 in late New York trading.

Gold earlier rose as high as $668.40, but then stalled and recoiled, following a similar pattern to the previous day.

Many analysts and traders say gold needs to consolidate recent gains and possibly retrace, before launching an attack on last July's peak at $676 and above.

/...

[Ghost Dog]

103. Gold climbs as the dollar falls on U.S. trade gap

http://www.marketwatch.com/news/story/gold-ends-higher-wider-us/story.aspx?guid=%7BD0C14B82%2D3D9C%2D4B4C%2D9AF5%2D7B2F0B0E414E%7D&dist=MostReadHome

SAN FRANCISCO (MarketWatch) -- Gold futures closed higher Tuesday, recouping some of their recent losses and sending their benchmark contract to its highest level in six months as a record U.S. trade deficit fueled a decline in the dollar.

But prices ended below the day's best level with news of disarmament plan for North Korea likely easing some of the interest in gold as a safe-haven investment.

Gold for April delivery closed up $1.20 at $668.50 an ounce on the New York Mercantile Exchange. It traded as high as $673.70, the contract's strongest intraday level since early August. On Monday, prices lost $5.

Gold prices spent the session trading steady to higher "in spite of news that North Korea has agreed to accept aid in exchange for shutting down its nuclear reactor," Todd Hultman, president of DailyFutures.com, said in comments on his Web site
...

"Reality certainly set in this morning as the U.S. currency took a dip against the euro, itself boosted by reports of better than 3% GDP growth in the euro zone," Nadler said, in e-mailed commentary.

Developing interest-rate differentials and portfolio diversification tactics point to a resumption of the slow but growing exodus from the dollar by a variety of investors, Nadler said.

...

Other metals prices followed gold higher. March silver closed up 1.5%, or 20 cents, at $13.915 an ounce after reaching a two-month high of $14.

"Looks like today might signal the week for silver to break out above $14 per ounce finally," said Neal Ryan, director of economic research at Blanchard, which has "been waiting on this one and expecting it to outperform gold and platinum for a while now."

March palladium added $6.85 to end at $344.60 an ounce and April platinum climbed $14.70 to close at $1,206 an ounce.

March copper rose 4.3%, or 10.7 cents to close at $2.5845 a pound, extending last week's gain of 3.9% after dropping more than 8% the week before.

March copper has seen a "solid bounce of support near $2.3850, the 50-percent retracement level of its long-term uptrend," said Darin Newsom, an analyst at DTN.

"Initial buying interest was non-commercial (speculative) short-covering, but deferred spreads are narrowing -- indicating there may also be some commercial-buying interest," he said in e-mailed comments.

On the supply side, gold inventories were unchanged at 7.49 million troy ounces as of late Monday, according to Nymex data. Silver supplies rose 599,378 troy ounces to stand at 115.43 million troy ounces and copper stockpiles dropped 296 short tons to 36,189 short tons.

/...

[Ghost Dog]

73. IMF sees Canada strength at risk from U.S. slowdown

http://www.reuters.com/article/bondsNews/idUSN1316487820070213

OTTAWA, Feb 13 (Reuters) - The International Monetary Fund believes the risks to the Canadian economy from the U.S. housing slowdown remain a threat to recent strong growth rates, according to a report on Tuesday.

"The strong recent performance of the Canadian economy is likely to continue, although growth risks are tilted to the downside given the possibility of a larger-than-expected U.S. slowdown," the IMF said in an annual assessment of the Canadian economy.

The Bank of Canada has said that that risk is balanced with upside risks in its outlook on growth and inflation. It expects gross domestic product growth to have slowed to 1.5 percent in the fourth quarter of 2006 but to pick up to 2.4 percent in the first quarter of this year.

The IMF said it sees growth picking up to 2.75 percent by mid-2007. It lauded the Bank of Canada for keeping its key lending rate unchanged at 4.25 percent and agreed that monetary policy should remain on hold for the foreseeable future.

"Bank officials also suggested that spillovers from slower U.S. residential investment might be particularly large, while Finance Canada and most private sector analysts saw the spillovers from housing as similar to other types of U.S. demand," the IMF said.

A one-percentage-point slowing in U.S. growth would trim Canadian growth by between 0.3 and 0.7 percentage points, more likely at the higher end of that range, the Washington-based lender estimated.

/...

[Ghost Dog]

80. Canada: Exports hit record last year, despite drop in shipments to U.S.

http://www.mytelus.com/news/article.do?pageID=cp_business_home&articleID=2545552

OTTAWA (CP) - Canada's merchandise exports hit a record annual high in 2006, despite the first decline in exports to the United States in three years.

Canadian companies exported nearly $458.2 billion worth of merchandise last year, up 1.1 per gain from 2005, Statistics Canada said Tuesday. But imports rose nearly four times as fast (up 4.2 per cent) to $404.5 billion, which was also a record high.

That means the country's merchandise trade surplus fell by more than $11.2 billion to $53.6 billion, its lowest level since 1999.

Exports to the U.S. accounted for 79 per cent of all sales, down from 81 per cent in 2005 and the trade surplus with the U.S. was the smallest since 2003.

Lower shipments of autos and forestry products helped push down shipments to the U.S.

...

Energy exports last year were stable at 2005's high levels, but the picture was mixed. Crude petroleum exporters had a strong year, but that was offset by falling prices for natural gas exporters.

[Ghost Dog]

102. CURRENCIES: Dollar Lower As Trade Gap Widens; Yen Recovers Ahead Of GDP

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=81a6b0d1-e243-4b3f-b8d3-15cab26943aa

The dollar fell against other major currencies Tuesday after a government report showed the U.S. trade gap widened more than expected in December.

The trade gap widened by 5.3% in December to $61.2 billion, the Commerce Department said Tuesday. Analysts surveyed by MarketWatch had expected the deficit to increase to $59.5 billion. For all of 2006, the U.S. posted a record trade deficit of $763.6 billion.

The data are "dollar bearish," said T.J. Marta, fixed-income strategist at RBC Capital Markets. "This report will likely cause a further downward revision to" fourth-quarter gross domestic product, he said.

In New York trading, the euro stood at $1.3022, compared with $1.2961 late Monday. The dollar was quoted at 121.28 yen, compared with 121.94 yen.

The British pound traded at $1.944, compared with $1.9474. The dollar changed hands at 1.2486 Swiss francs, compared with 1.2532 francs.

The euro fetched 157.97 yen, compared with 158.05 yen.

Brian Dolan, director of research at Forex.com, a division of Gain Capital, said while the December data come in wider-than-expected, the overall U.S. trade deficit continues to show signs of stabilization. As a result, "any dollar-negative reaction based on the data should be short-lived."

Bernanke ahead

Losses in the dollar were limited as traders await Federal Reserve Chairman Ben Bernanke's congressional testimony later in the week.

Bernanke is scheduled to present his semiannual report on monetary policy to Congress at the Senate Banking Committee on Wednesday and at the House Financial Services Committee on Thursday.

Michael Woolfolk, senior currency strategist at The Bank of New York, said with the market "surprised at the less-hawkish tones" struck in the latest Fed interest-rate meeting statement, "the risk is that Bernanke may bolster his inflation-fighting credentials by highlighting upside risks to U.S. growth and inflation in 2007."

Ahead of testimony tomorrow, "the market is unlikely to push the euro through the top end of its recent range -- $1.3040-50," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

Growth data boost euro

Meanwhile, the euro gained after data showed economic growth in countries that use the currency jumped in the fourth quarter, as Italian growth advanced sharply from the last quarter and Germany's acceleration continued.

The Eurostat statistics office said the euro-area economy grew 0.9% in the fourth quarter from the third, or up 3.3% annually. That puts the European economy nearly on par with the 3.4% annual growth recorded in the U.S. during the same time frame.

/...

[UpInArms]

22. Thank you, whoever you are for the heart!

:hug:

:blush:

[Maeve]

24. Also stopping by to give thanks for my secret friends!!

Dollars to donuts, they visit this thread...:grouphug: :toast:

[UpInArms]

27. hiya Maeve!

:grouphug:

:toast:

:hi:

[ozymandius]

33. Hi there Maeve!

:grouphug:

It's a wonderful birthday present to have so many friends dropping by the thread today.

Ozy :hi:

[54anickel]

37. Ozy, today's your b-day????

:party: :toast: :bounce: :grouphug:

[ozymandius]

38. Sure is.

I'm no longer a thirty-something. And thank you!

[UpInArms]

43. Happy Birthday Ozy!!!

:grouphug:

:toast:

[ozymandius]

55. Thank you UpInArms and 54anickel!

:grouphug:

There's a lot of love around here today.

[54anickel]

52. Well then, a happy birthday to you indeed!!!

Personally, I liked the thirty-something so well, I've been holding there for a loooong, loooong time. ;-)

:toast:

[Maeve]

63. Ahh, you're still a kid!

Life begins at...and all that! :party::grouphug::toast:

:beer: :beer:
:beer: .......... :beer:
:beer: ............... :beer:
:beer: ................. :beer:
:beer: ................... :beer:
:beer: ................... :beer:
:beer: ................. :beer:
:beer: ............... :beer:
:beer: .......... :beer:
:beer: :beer:

[Ghost Dog]

70. Cheers Ozy

Maeve & the gang. :toast: (but with wine).

Ozy, are you the Californian Ozymandius I once identified through the web as a one-time craftsman woodworker?

[ozymandius]

107. Hi Ghost Dog.

Sorry to take so long to respond. I was a professional craftsman woodworker in Atlanta. I still live in Atlanta but closed the woodshop a long time ago. There's family in California. But we've never resided there.

[54anickel]

39. Hey there Maeve!!! Good to see you again, it's a special "Maeve Day"!

:hug:

[Maeve]

64. It's a special Snow Day here!

Four inches and still coming down in shovel-fulls...told both college boys to skip class if they could--the commute isn't worth it! The high school is closed so the girls are home, too. Now if only Hubby hadn't had to go to work...

Stay warm, y'all!

[UpInArms]

25. Bill Gates, Saudi prince in deal for Four Seasons Hotels for $3.37 Billion

http://www.latimes.com/business/la-fi-hotel13feb13,1,5448591.story?coll=la-headlines-business&track=crosspromo

A $3.37-billion deal announced Monday by billionaires Bill Gates and Saudi Prince Alwaleed bin Talal to buy the luxury Four Seasons Hotels Inc. underscores a frenzy by well-heeled investors to acquire hotels and lodging companies worldwide.

The investment trend is the result of a worldwide economic boom that has sparked a surge in global demand for business and leisure travel, a sharp turnaround from the slump after the 2001 terrorist attacks.

The economic surge also has generated massive wealth for private and institutional investors eager to put their money to work in a hotel business that is benefiting from huge demand and steady income but has limited ability to build more hotels.

The lack of new properties makes it harder for travelers to find an available room. And when they do, the rates are higher, averaging $272 a night for luxury accommodations.

That has pushed hotel sale prices to record levels. Last year, the Four Seasons Hualalai Resort on the Big Island of Hawaii set a U.S. record, with a price tag that works out to $2.2 million a room. The W Union Square in New York and part of the historic Hotel del Coronado on San Diego Bay both sold for more than $1 million a room.

"Obviously the $1 million room is no longer a barrier for entry," said Jan Freitag, vice president of Hendersonville, Tenn.-based Smith Travel Research. "It's no longer unusual on the upper end of the market. There's very strong demand and very little new supply. Those are the underlying forces that shape the industry as we see it in 2007."

...more...

[UpInArms]

26. China: Record Trade Surplus

http://www.nytimes.com/2007/02/13/business/worldbusiness/13fobriefs-RECORDTRADES_BRF.html?ex=1329022800&en=2616fd2008adab31&ei=5088&partner=rssnyt&emc=rss

China’s surging trade surplus rose 67 percent in January from the corresponding month last year, to $15.88 billion, the General Administration of Customs said. China’s exports hit $86.62 billion, up 33 percent from January 2006, while imports totaled $70.74 billion, up 27.5 percent from a year earlier, the customs bureau said. The figures were released as finance ministers and central bankers from the Group of Seven industrialized nations meeting in Germany criticized China’s exchange rate policy, which has kept the country’s currency weak.

[Ghost Dog]

105. A New High in the U.S./China Trade Deficit Is a New Low for American ... (propaganda)

I dunno if anyone's still reading this thread at this time of night, or if it's basically a waste of short-attetion-span time. But it does seem to be the case, on the balance of the evidence, that it sometimes pays to pay attention. Is it not at all possible that the so-pampered although debt-ridden and badly-invested (but highly liquid) US dollar (and the Euro also) may actually be very overvalued? Ugh.

A New High in the U.S./China Trade Deficit Is a New Low for American Manufacturing, Workers, and Agriculture
http://news.yahoo.com/s/usnw/20070213/pl_usnw/a_new_high_in_the_u_s__china_trade_deficit_is_a_new_low_for_american_manufacturing__workers__and_agriculture;_ylt=A0WTUZDTLNJFmwABgzKyFz4D
To: FOREIGN EDITORS
Contact: Meg Mullery, [phone], [e-mail], for China Currency Coalition

WASHINGTON, Feb. 13 /PRNewswire-USNewswire/ -- The Department of Commerce reported today that the U.S. trade deficit with China grew to a new high of $232.5 billion in 2006, up from $201.5 billion the previous year, according to a coalition of U.S. manufacturers, agricultural producers, and workers. The China Currency Coalition further noted that the U.S./China bilateral trade deficit exceeded that with any other U.S. trading partner.

The coalition plans to focus on Capitol Hill and the new Congress to promote legislation that will provide some defense for U.S. manufacturers, workers, and farmers who must compete against the misaligned yuan. Many international economists believe that China's currency is undervalued by about 40 percent. This undervaluation is significant because it effectively levies a tax and therefore increases the cost of U.S. exports to China, while giving Chinese producers an automatic price break on their exports to the United States. Producers in China benefit from what is, in effect, a substantial government subsidy, which allows them to enter the global marketplace with a huge price advantage.

Explained coalition spokesperson David A. Hartquist, "Americans are hurt coming and going, and many U.S. companies have concluded that the only way they can compete is by moving their operations to China. What is needed is legislation that will enable U.S. companies, workers, and farmers -- consistent with international law -- to defend themselves against the negative impact of undervaluation."

/...

[Ghost Dog]

28. Optimism on growth carries Tokyo stocks

http://www.ft.com/cms/s/c5fae5a8-bb0e-11db-bbf3-0000779e2340.html

Dealing rooms re-opened after Monday’s market holiday in bullish mode, with investors increasingly persuaded that a domestic recovery is now properly underway. The day’s trading took the Nikkei 225 Average up to its May 2000 level as real estate issues in particular hit prices last seen in the final days of Japan’s bubble economy.

Overnight falls on Wall Street produced only a temporary drag on sentiment as Japan’s benchmark index rose 117.12 points, or 0.67 per cent, to close at 17,621.45. The Topix climbed 0.62 per cent, with a rise of 10.81 points taking the index to 1,755.90.

The yen also rose against other major currencies, after touching a new low against the euro on Monday following the G7’s inaction on European complaints about the weakness of the yen. The yen rose from Y121.80 to Y121.40 against the US dollar on rumours that the Bank of Japan had struck a deal with the European Central Bank. Although there is no public evidence of such a deal, trading floors are convinced that Japan has promised a 0.25 basis point rise in interest rates at the next Bank of Japan meeting. Many investors who were previously short on the yen closed their positions Tuesday.

Driving the equity market’s optimism was increased speculation that the Japanese government will later this week unveil strong economic figures for the fourth quarter and possibly report the fastest rate of growth in nearly two years.

/...

[UpInArms]

29. Ex-Westar Executive Released From Prison Pending Appeal

http://www.nytimes.com/2007/02/13/business/13westar.html?ex=1329022800&en=18941e171ce20ecb&ei=5088&partner=rssnyt&emc=rss

LEAVENWORTH, Kan., Feb. 12 (AP) — David Wittig, the former top executive of Westar Energy, was released from prison on bond Monday pending the appeal of his sentence in a bank fraud case.

Mr. Wittig was released from the federal detention center in Leavenworth about 2 p.m. and was greeted by his wife, Beth, and Jeff Morris, one of his attorneys. He had served nearly 13 months in prison.

Mr. Wittig, the former chairman, president and chief executive of Westar, was convicted in July 2003 of engaging in a loan transaction with a Topeka banker and helping to conceal the loan from banking regulators.

Mr. Wittig had been incarcerated in a minimum-security prison in Sandstone, Minn., until last month, when he was taken to Topeka for his third sentencing in the bank fraud case. Federal District Judge Julie A. Robinson sentenced him to two years.

...more...

background information:

Westar Donation Brought Access to DeLay

AUSTIN – A company indicted in a Texas campaign fundraising case says it was told that by giving a Tom DeLay political committee $25,000, company officials would get access to the U.S. House majority leader to influence legislation.

In court documents, Westar Energy of Kansas says that to meet with Mr. DeLay in 2002, company officials "were told they needed to write a check for $25,000" to Texans for a Republican Majority, known as TRMPAC.

It's the first time a company has said it donated to the Texas committee created by Mr. DeLay in exchange for a meeting and legislative help.

An aide to Mr. DeLay denied that he was swayed by the donation.

"Anyone who has worked with Majority Leader DeLay knows that his legislative efforts are based on sound public policy alone," spokeswoman Shannon Flaherty said.

Westar attorney Martha Dickie declared in April in an Austin court that company officials hoped to win Mr. DeLay's help on pending energy legislation, according to transcripts in a lawsuit challenging the use of corporate money in Texas elections.

...more...

[Ghost Dog]

30. Indian shares drop 1.6 pct, trade below 14,000 pts

http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2007-02-13T151001Z_01_NOOTR_RTRJONC_0_India-287442-2.xml

MUMBAI (Reuters) - Indian shares fell more than 1.6 percent to one-month lows below 14,000 points on Tuesday after India's central bank expressed concerns about rising inflation and said it would take monetary steps to cool price pressure.

At 2:58 p.m. or 0928 GMT India's main 30-issue BSE index was down 1.61 percent at 13,962.18 points, with 24 of its components in the red.

The index hit a record high of 14,723.88 points on Friday.

[Ghost Dog]

86. India tightens monetary policy to fight surging inflation

http://www.turkishpress.com/news.asp?id=162608

NEW DELHI (AFP) India's central bank tightened monetary policy for a second time in two weeks to fight surging inflation, announcing a 50-basis-point hike in the cash-reserve ratio requirement for commercial banks.

The Reserve Bank of India said it was raising the cash reserve ratio (CRR) to 6.0 percent from 5.5 percent to take money out of the banking system and try to slow rapid credit growth that is helping fuel inflation.

"In view of the paramount need to contain inflation expectations and in the light of current liquidity conditions, it has been decided to increase the cash reserve ratio...," the bank said in a statement on its web site.

The move, which the bank said would suck 140 billion rupees, or 3.17 billion dollars, from the banking system, had been forecast by economists after inflation hit a more than two-year high of 6.58 percent last Friday.

Inflation now is riding significantly above the 5.0-5.5 percent tolerance limit set by the Reserve Bank, based in India's financial capital, Mumbai.

"This is a very sharp move, they are directly siphoning money out of the system ... this is a move to control the demand side," said D.K. Joshi, principle economist at Indian credit rating agency Crisil in New Delhi.

The government last week estimated growth at 9.2 percent for the financial year to March 31, 2007, after the economy expanded by nine percent a year earlier.

Credit has been expanding by more than 30 percent a year amid surging demand for services, manufactured goods and housing from an increasingly affluent middle class of 300 million people.

Monetary policy authorities are trying to allow Asia's fourth-largest economy to move onto a higher growth path without letting inflation get out of control.

The bank, which is raising the cash reserve ratio in two 25-basis-point moves, said it aimed to "contain inflation without unduly impacting the growth momentum."

/...

[Ghost Dog]

104. The numbers just do not add up

http://www.financialexpress.com/fe_full_story.php?content_id=154721
The arithmetic on India’s foreign currency reserves can be an exercise in perplexity

ALOK SHEEL
Posted online: Wednesday, February 14, 2007 at 0000 hours IST

India’s foreign currency reserves rose sharply from $2 billion at the height of the balance of payments (BoP) crisis in March 1991 to $152 billion as on March 31, 2006. On February 2, 2007, they stood at $173 billion. During the period March 1991 to March 2006, net foreign investment flows were $94 billion, and external debt stock grew by $41 billion. The cumulative current account deficit between March 1992 and 2006 was $29 billion.

A simple exercise in arithmetic would indicate that the country’s foreign exchange reserves should have risen by $106 billion. Where, then has the extra $46 billion come from? If net flows of $16 billion under ‘other capital’ (presuming they are not accounted as debt) and ‘errors and omissions’ are also accounted for, the difference would still be $28 billion, plus. The following figures are cumulative flows in billion US dollars between March 1991 and March 2006, except for foreign debt which is the increase in stock over the period:

• Current Account (-29)

• Others & E&O (+16)

• Net FI Flows (+94)

• Debt Stock Increase (+41)

• FC Reserves March 1996( +2)

• Predicted FC Reserves (124)

• Actual FC Reserves (152)

• Difference (+28)

The above arithmetic uses a mix of flow and stock data. The cumulative current account deficits and foreign investment are an aggregation of annual net flows derived from BoP tables published by the ministry of finance and the central bank. The (actual) foreign currency reserves and external debt at the end of each year are outstanding stock figures. Some discrepancy is expected between flow and stock data, but this would be marginal and fully adjusted via ‘errors and omissions’. The difference of $28 billion is far too significant to be explained by this.

One possible explanation is exchange losses incurred by non-residents holding assets denominated in rupees. These would most likely consist of capital coming in the form of foreign currency, locked into rupee deposits (‘NRE’), and repatriated at the end of the period in foreign currency after booking capital losses. This capital loss would, of course, be set off against higher rupee interest rates. The gains in interest are captured on the current account side, while capital loss is booked on the capital account.

The other possible source of discrepancy is profits on the RBI’s management of foreign currency assets. It’s not clear how much of this is captured in the annual BoP flow tables. Most of the reserves are invested in hard currency, US treasury bonds, which offer low yields in exchange for security, but do yield interest income. The RBI also intervenes in forex markets to stabilise exchange rates and sterilise excess liquidity caused by forex inflows, and its foreign currency portfolio is thus exposed to gains and losses. Cross-currency revaluations could also result in gains, especially since there has been a significant shift in the reserve portfolio from US dollars to euros. The dollar has been depreciating against the euro.

Still, the reserve gains of $28 billion over 15 years on account of exchange losses incurred by non-residents, interest income on investments, market intervention and portfolio shifts nevertheless seem quite remarkable.

Or are we missing something here?

Huge foreign currency reserves are a reassuring cushion against external shocks such as oil price spikes, but a sharp increase in reserves is not an unqualified blessing for a developing country. They constitute net capital outflow and thus missed domestic investment. India is not alone in accumulating such huge foreign currency reserves, which ultimately finance the burgeoning US current account deficit. But India is unique amongst BRIC countries in stacking up such reserves despite consistently huge merchandise trade deficits.

—The author is secretary, planning and economic affairs, Kerala. These are his personal views

[UpInArms]

31. MTV Laying Off 5.5% of Staff; Savings to Go to Newer Ventures

http://www.nytimes.com/2007/02/13/business/media/13viacom.html?ex=1329022800&en=e26eff0fad94a349&ei=5088&partner=rssnyt&emc=rss

MTV Networks plans to dismiss 250 people, or 5.5 percent of its staff of 4,500, the network’s chief executive, Judy McGrath, told employees in an e-mail message yesterday.

Although Ms. McGrath did not say how much was hoped to be saved from the move, her message said that the money would be used to invest “in our television and digital future, and to keep winning in this revolutionary environment.” Viacom, MTV’s parent company, is rushing to develop new interactive businesses.

“We have to refine our business and organizational models as well,” her message said. The layoffs are expected to be completed within weeks. Although Ms. McGrath gave no specifics about who would stay and who would go, a person who was briefed on the dismissals said that the company would fine-tune its operations by sharing resources across brands.

For example, a single sales staff may sell advertising for all the children’s channels, including Nickelodeon, Nick@Nite, Noggin and the N, this person said. The company also may reorganize so that its music networks — MTV, MTV2, VH1, Country Music Television and Logo — share employees, said the person who was not authorized to speak and requested anonymity.

In her message, Ms. McGrath wrote, “In the U.S., we will build resources against some new businesses — our interactive properties and some of our new networks — and we will make reductions in others.”

...more...

[ozymandius]

36. Comair and Pilots Union Reach Agreement

CINCINNATI (AP) -- Comair and the union representing its pilots reached a tentative agreement Tuesday, forestalling a plan by the regional airline to impose wage cuts and other concessions.

The company has agreed to delay implementation of the concessions unless the agreement is not ratified by March 4, Comair spokeswoman Kate Marx said.

The proposal must now be reviewed by union leadership before going before the 1,500-member union for a vote, said Air Line Pilots Association union spokesman Paul Denke.

http://biz.yahoo.com/ap/070213/comair_pilots.html?.v=10

[UpInArms]

40. U.S. SEC seeks to curtail investor suits: NYT

http://news.yahoo.com/s/nm/20070213/bs_nm/sec_dc

NEW YORK (Reuters) - The U.S. Securities and Exchange Commission has taken steps on two fronts to protect corporations, executives and accounting firms from investor lawsuits that accuse them of fraud, the New York Times reported in a story published on Tuesday.

Last week, the commission filed a brief in the Supreme Court urging the adoption of a legal standard that would make it harder for shareholders to prevail in fraud lawsuits against publicly traded companies and their executives, the paper said.

At the same time, the agency's chief accountant told a conference that it was considering ways to protect accounting firms from large damage awards in cases brought by investors and companies, the paper said.

Christopher Cox, the commission's chairman, said in an interview that both efforts were in the best interests of investors, because they aimed at preventing the accounting industry from further consolidation and at limiting what he called "fraudulent lawsuits," including some he said were filed by "professional plaintiffs," the Times said.

...very little more...

[Robbien]

47. This is sickening

Every single government watchdog department is headed by a GOP rich elite crook. Here it appears Cox gets paid by the US taxpayer to protect rich CEO's and friends from the US taxpayer.

[UpInArms]

49. ding ding ding! we have a winner!

Every single government watchdog department is headed by a GOP rich elite crook.

You got it right where it lives, Robbien.

If and when our country ever wakes up entirely, the anger will be enormous and there will be torches and pitchforks.

[UpInArms]

54. Bush makes fresh pitch for free trade - Fast-track authority expires 7/1/07

http://economictimes.indiatimes.com/News/International__Business/Bush_makes_fresh_pitch_for_free_trade/articleshow/1601933.cms

WASHINGTON: Faced with record trade deficits and intense competition from rapidly growing China and India, US President George Bush has made a fresh pitch for breaking down trade barriers and energising global trade talks.

Free-trade policies making it easier for US companies to sell their products around the globe are an important ingredient to the economy's vitality, he said Monday projecting another year of good - though somewhat slower - economic growth for the country.

In his annual economic report to Congress, Bush called on Congress to extend his authority to negotiate free-trade deals, a request that is likely to face an uphill battle in the Democrat-controlled Congress.

<snip>

Against that backdrop, Bush faces a daunting challenge in getting Congress to renew the Trade Promotion Authority, also known as fast-track authority. It lets the president negotiate trade deals that Congress must approve without amendments. That authority expires July 1.

...more...

remember when the pukes did not want Clinton to have "fast-track authority" and then gave it to shithead the younger? I do so hope that the dems in Congress now let it die an ignoble death.

[Ghost Dog]

66. Also_ "FDI (in US) trends ‘may be cause for concern’"

http://www.ft.com/cms/s/1c968f10-bb10-11db-bbf3-0000779e2340.html

Foreign direct investment into the US may be on the decline because of fears of US openness to foreign capital, the White House warned on Monday in the Economic Report of the president to Congress.

The intervention comes as the House of Representatives prepares to debate this week a proposal to reform the way the US vets foreign deals on national security grounds.

The Economic Report, drafted by the president’s council of economic advisers, says recent trends in FDI “may be cause for concern”.

It observes that the share of US output produced by foreign companies operating in the US has “stagnated and even declined in recent years” while their share of employment fell from 5.1 per cent in 2000 to 4.7 per cent in 2004.

Meanwhile, direct investment relative to all the assets owned by foreigners in the US has declined since 1999.

The report says these could be “benign and temporary trends” but may also be “symptomatic of deeper issues with respect to the attractiveness of the US as a country in which to make direct investment”.

...

The White House said it expected workers’ share of output to rise from its relatively low level of 56.7 per cent of gross domestic product, to 57.8 per cent by 2012.

But it acknowledged a long-term trend towards “growing disparity in compensation and wages”.

Ed Lazear, chairman of the CEA, said this would probably be driven by technological change. He said the recent relatively sluggish growth in wages of the average American might be because of demographic factors, with a bulge in the number of workers who completed high-school education but did not go on to higher education.

/... Uhuh. Yup. Could some more 'rational', properly negotiated & regulated trade & investment really be on the way?

[UpInArms]

56. Four Dead In Murder-Suicide At Philadelphia Business Meeting

http://www.allheadlinenews.com/articles/7006448809

Pittsburgh, PA (AHN) - A man fatally shot three men and critically wounded another at a business meeting Monday night before turning the gun on himself and committing suicide, according to authorities. When police arrived in the conference room in an office building at the old Philadelphia Navy Yard, they exchanged fire with the gunman before he shot himself.

The Seattle Times reports Deputy Commissioner Richard Ross said the meeting appeared to have been a gathering of the board of directors of a company that may have been a business firm.

Ross said the gunman's role in the company was not immediately clear but that he may have been an investor. Police said he got into an argument about "some issue about money."

Police described the scene as "utter chaos" and said when they entered the conference room they found two men who had not been shot and were bound with duct tape while the shot men were in various locations in the room.

...more...

:(

[UpInArms]

58. Delphi posts wider quarterly loss

http://www.reuters.com/article/bondsNews/idUSWEN419220070213

CHICAGO, Feb 13 (Reuters) - Bankrupt auto parts maker Delphi Corp. (DPHIQ.PK: Quote, Profile, Research) posted a wider quarterly net loss on Tuesday as it took charges for a retirement and buyout program for its unionized U.S. hourly work force.

The net loss widened to $2 billion, or $3.51 per share, in the fiscal third quarter, from $788 million, or $1.40 per share, a year earlier.

...a bit more...

[texpatriot2004]

59. K & R nm

[UpInArms]

60. KB Home posts quarterly net loss after charges

http://www.reuters.com/article/bondsNews/idUSWEN419920070213

CHICAGO (Reuters) - KB Home (KBH.N: Quote, Profile, Research) posted a quarterly net loss on Tuesday as it took $343.3 million of pretax land-related charges, a consequence of the U.S. housing market downturn, and said its cancellation rate rose to 48 percent.

KB Home reported a net loss of $49.6 million, or 64 cents per share, for the fiscal fourth quarter ended November 30, compared with net income of $304.4 million, or $3.44 per share, a year earlier.

[OrangeCountyDemocrat]

69. 48% Cancellation Rate Is Super High, Isn't It?

Net Loss of $50 Million, compared to Income of $300 Million the prior year. Good thing it's a soft landing.

:sarcasm:

[UpInArms]

61. 9:41 EST and the land of la la rejoices

Dow 12,614.72 62.17 (0.49%)
Nasdaq 2,461.30 10.92 (0.45%)
S&P 500 1,438.87 5.50 (0.38%)
10-Yr Bond 4.802% 0.002

NYSE Volume 174,942,000
Nasdaq Volume 126,790,000

09:15 am : S&P futures vs fair value: +3.1. Nasdaq futures vs fair value: +3.0.

09:00 am : S&P futures vs fair value: +3.3. Nasdaq futures vs fair value: +3.0. Still shaping up to be a solid start for the cash market, as one might expect amid takeover speculation of a Dow component (Alcoa). However, the growing belief that the market is topping out after seven straight months of gains, coupled with concerns that Bernanke will present a hawkish view on monetary policy in his Senate testimony tomorrow, have contributed to the restrained enthusiasm of late that is likely to cap today's attempts to bounce back.

08:32 am : S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +2.8. Positive bias persists in pre-market action as futures indications continue to trade above fair value. Just hitting the wires, the Commerce Dept. reports that the U.S. trade deficit widened in December to $61.2 bln (consensus -$59.5 bln). Reaction in both stocks and bonds, however, has so far been muted as investors await clues about the interest rate outlook amid two days of testimony from Fed Chairman Bernanke which begins off tomorrow.

[UpInArms]

62. 10:14 EST getting better and better everyday in everyway

:eyes:

Dow 12,633.70 81.15 (0.65%)
Nasdaq 2,462.73 12.35 (0.50%)
S&P 500 1,440.05 6.68 (0.47%)
10-Yr Bond 4.802% 0.002

NYSE Volume 453,135,000
Nasdaq Volume 321,764,000

10:00 am : The indices are extending their reach to the upside as all 10 sectors are in positive territory. Not surprising, speculation that one of its most heavily weighted components (Alcoa) is a takeover target, Materials is pacing the way higher (+1.7%). Oil prices rebounding from yesterday's 4.0% sell-off rank Energy second among today's leaders. Technology, due in large part to a 1.0% advance from its most influential component -- Microsoft (MSFT 29.12 +0.28) -- is also providing some notable leadership.DJ30 +73.77 NASDAQ +13.25 SP500 +6.74 NASDAQ Dec/Adv/Vol 819/1647/168 mln NYSE Dec/Adv/Vol 698/1859/74 mln

09:40 am : As expected, stocks open on an upbeat note as today's encouraging M&A news helps investors look past the collapse of two deals yesterday. After taking a breather over the last three sessions, the Dow is pacing the way out of the gate following reports that Alcoa (AA 35.09 +2.19) is the target of two separate impending takeover bids. The blue-chip index is getting an added boost from 3M Co. (MMM 76.29 +1.70), whose board approved a $7 bln share buyback, General Motors (GM 36.98 +1.27), which was upgraded to Buy from Sell at Merrill Lynch.DJ30 +59.28 NASDAQ +8.53 SP500 +4.81 NASDAQ Vol 88 mln NYSE Vol 54 mln

[Ghost Dog]

74. Iran's Khamoushi meets with top German trade officials

http://www2.irna.ir/en/news/view/line-18/0702138526135931.htm

The head of Iran's Chamber of Commerce, Industries and Mines Ali-Naqi Khamoushi on Monday held talks with his German counterpart Martin Wansleben and the President of the Federation of Wholesale and Foreign Trade (BGA) Anton Boerner in Berlin, Iranian embassy announced Tuesday.

Khamoushi called for boosting private German investments in Iran, in view of the recent decree by Supreme Leader Ayatollah Seyyed Ali Khamenei based on Article 44 of the Iranian Constitution which has opened the door for foreign investments.

The Iranian official pointed to the benefits of the huge Iranian market, especially in the industrial and trade sector.

Khamoushi also attended a round-table meeting of German business and trade representatives, responding to questions about investment possibilities in Iran.

Khamoushi was due to take part later in the day in a seminar in Hamburg on privatization and investment opportunities in Iran.

Iran remains one of Germany's biggest trading partners in the Middle East.

/.

[Ghost Dog]

75. 88.3 pct progress observed at Pars Special Economic Energy Zone

http://www2.irna.ir/en/news/view/line-18/0702133836192414.htm

In average 88.3 percent physical progress has been achieved in the executive operations of 13 petrochemical projects currently underway at Pars Special Economic Energy Zone in Asalouyeh in the southern Bushehr province up to January 20, 2007.

According to a report released by the Public Relations Department of the National Petrochemical Industries Co., 99.3 and 99 percent progress was achieved in the first and second ammonium urea projects at Ghadir Petrochemical Complex respectively.

It added that meanwhile, 97.6 and 92.6 percent progress has been observed in the ethyl benzene and styrene monomer projects at Pars Petrochemical Complex respectively.

"Pars Special Economic Energy Zone was established in 1998. Its establishment was authorized by the Supreme Council of Free Zones and aims to exploit the oil and gas reserves of South Pars area and facilitate economic activities in oil, gas and petrochemical industries.

/(Whatever ways of measuring such 'progress' are employed)...

[Ghost Dog]

76. Oil bourse to be put up in Kish in near future: minister

http://www2.irna.ir/en/news/view/line-18/0702131184123819.htm
Kish Island, Persian Gulf, Feb 13, IRNA

Oil Minister Kazem Vaziri Hamaneh Monday night in this southern island said that a stock market for trade in shares of oil companies will be established in Iran's southern of Kish in the near future.

Speaking to IRNA on the sidelines of an inspection tour of a local gas transfer operation, the minister said the stock market will be set up in cooperation with the oil and finance ministries.

The stock market will be open to the public soon after the appointment of a managing director and members of a board of directors.

/.

[Ghost Dog]

77. Hamburg business seminar focuses on Iran investment opportunities

http://www2.irna.ir/en/news/view/line-20/0702130003192229.htm
Hamburg, Feb 13, IRNA

A business seminar on investment opportunities in Iran was held Tuesday morning in the north German port city of Hamburg, the Iranian embassy said.

Speakers at the seminar included the head of Iran's Chamber of Commerce, Industries and Mines Ali-Naqi Khamoushi, Deputy Foreign Minister for Economic Affairs Ali-Akbar Sheikh-Attar and Iran's Ambassador to Germany Mohammad-Mehdi Akhoundzadeh, all of whom urged German investments in Iran.

The seminar discussed also Iran's ongoing privatization efforts as well as banking reforms and the expansion of Iran's petrochemical sector.

Meanwhile Khamoushi pointed to the stance of the US and certain European countries towards Iran, saying negotiations were the only solution to resolve the impasse over Tehran's nuclear program.

Khamoushi made clear that the business community needs to be able to work in a quiet environment.

/.

[Ghost Dog]

78. Iran's ambassador: Politicizing Iran's peaceful nuclear program does not resolve the issue

http://www2.irna.ir/en/news/view/line-17/0702136332193444.htm
Baku, Feb 13, IRNA

Iran's Ambassador to Baku Afshar Soleimani said here Tuesday that politicizing Iran's peaceful nuclear activities does not help resolve the issue.

Speaking in a special ceremony to mark the 28 anniversary of the victory of the Islamic Revolution in Iran in Baku, he said Iran's nuclear drive is a purely legal and technical issue which should be observed within international rules and conventions.

International Atomic Energy Agency (IAEA) fully supervises Iran's nuclear activities, he underlined.

Referring to US threats against Iran, he said the US
administration has always brought up false claims about Iran's peaceful nuclear activities and only seek their one-sided political goals.

The Islamic Republic of Iran has signed Non-Proliferation Treaty (NPT) and has always declared that only seeks peaceful nuclear activities which has the approval of the IAEA, he said.

Iran abides by international rules and never interferes in domestic affairs of any country and does not let others interfere in its domestic issues either, he pointed out.

/.

[Ghost Dog]

85. Israel: Deal shows sanctions could work

http://www.iii.co.uk/news/?type=afxnews&articleid=5974944&subject=economic&action=article

JERUSALEM (AP) - Israeli Vice Premier Shimon Peres said Tuesday that North Korea's aid-for-disarmamnent deal with the United States shows that diplomatic and economic sanctions can work, and urged the international community to put similar pressure on Iran to drop its nuclear program.

Pyongyang agreed Tuesday to shut down its main nuclear reactor and eventually dismantle its atomic weapons program, in return for aid equal to up to one million tons of heavy fuel oil.

Under the agreement, announced just four months after North Korea tested a nuclear bomb, the U.S. will also begin the process of removing the communist state from its designation as a terror-sponsoring state and of ending its trade sanctions.

Peres said that the accord could show the way toward getting Iran to abandon its nuclear ambitions. Israel accuses Iran of pursuing nuclear weapons. Tehran says its atomic program is peaceful and aimed only at generating energy.

"Economic sanctions can really be effective, as evidenced by the change in the policy of North Korea," he told Israeli Army Radio. "In my opinion, if there should be a serious coalition that imposes economic sanctions, the same thing can happen with Iran."

/..

[citizen snips]

89. Sector Snap: Aluminum Jumps

NEW YORK (AP) -- Aluminum companies got a boost Tuesday after a British newspaper reported two large mining companies are separately considering a bid for Alcoa Inc., the industry's leader in the U.S.

Citing an unnamed source, the Times of London said BHP Billiton and Rio Tinto, both Anglo-Australian mining companies, were each studying potential bids.

Shares of Pittsburgh-based Alcoa Inc. jumped 5.7 percent in afternoon trading, rising $1.86 to $34.76 on the New York Stock Exchange. The stock climbed as high as $36.05 to flirt with its 52-week peak of $36.96.

Canadian rival Alcan Inc. saw its shares climb $2.13, or 4.1 percent, to $54.32 on the Big Board. Century Aluminum Co., based in California, saw its shares rise $1.74, or 3.8 percent, to $47.40 on the Nasdaq.

more...
http://biz.yahoo.com/ap/070213/metals_sector_snap.html?.v=1

[citizen snips]

90. Sector Snap: Staffing

NEW YORK (AP) -- Shares of Ceridian Corp. soared Tuesday to hit a 52-week high after the human resources provider said it was considering strategic alternatives and delivered a strong forecast for 2007.

Minneapolis-based Ceridian said it expects 2007 earnings and sales to climb from 2006 levels while reporting a higher fourth-quarter profit.

By early afternoon, Ceridian shares had risen $2.85, or 9.3 percent, to $33.57 after hitting a new yearly high of $33.50, eclipsing a prior high of $31.15 on the New York Stock Exchange.

In the last six months, shares of Ceridian have risen 29 percent, coinciding with numerous other staffing stocks whose shares have climbed recently as well. Some analysts attribute the trend to waning fears of a recession, as staffing companies usually fare better in a stronger economy because their business is cyclical.

more...
http://biz.yahoo.com/ap/070213/staffing_sector_snap.html?.v=1

[citizen snips]

91. Marsh & McLennan 4Q Profit Up Strongly

NEW YORK (AP) -- Marsh & McLennan Companies Inc., the nation's largest insurance brokerage, on Tuesday reported a six-fold increase in profit for the fourth quarter on strong revenue growth in its insurance, risk and consulting businesses.

The New York-based company said net income totaled $226 million, or 40 cents a share, in the October-December period, up from $35 million, or 6 cents a share, a year earlier.

Marsh & McLennan has been recovering from a sharp loss of income following its January 2005 settlement of the New York attorney general's probe into bid rigging, price fixing and the use of contingent commissions, or incentive fees. Marsh & McLennan agreed to pay $850 million to settle the New York case and related federal investigations and has since restructured its sales and marketing practices.

Marsh & McLennan sold its Sedgwick Claims Management business early in 2006. Net income, excluding this and other discontinued operations, was $223 million, or 39 cents a share, in the latest quarter.

more...
http://biz.yahoo.com/ap/070213/earns_marsh.html?.v=7

[citizen snips]

92. Sector Snap: Airline Stocks Mixed

NEW YORK (AP) -- Airline shares moved little in mixed trading Tuesday, as oil prices rebounded, the broader stock market made gains and winter storms plowed through the Midwest.

The Amex Airline Index rose a fifth of a percent, with six of its 11 component stocks gaining. Most percentage swings were slight, less than 1 percent.

Broad stock indexes rose amid investor hopes for more corporate mergers and acquisitions. Crude prices, though, jumped $1.54 to $59.35 on the New York Mercantile Exchange. Higher oil prices tend to hurt airline stocks, as jet fuel is one of the industry's top costs.

Winter storms, meanwhile, battered the U.S. Midwest and were headed for the Northeast. Continental Airlines Inc. said the storm will likely force delays and cancellations at its hubs in Newark, N.J., and Cleveland Tuesday night and Wednesday.

more...
http://biz.yahoo.com/ap/070213/airlines_sector_snap.html?.v=1

[citizen snips]

93. Analyst Upgrades GM, Downgrades Ford

DETROIT (AP) -- Merrill Lynch on Tuesday upgraded its recommendation on shares of General Motors Corp. to "buy" from "sell," on the belief that the auto maker will use its liquidity and assets to continue to cut costs.

At the same time, Merrill cut Ford Motor Co. to "sell" from "neutral" because the stock may be overvalued.

News of the GM upgrade helped the stock hit its highest level since August 2005 in early trading on the New York Stock Exchange. The shares were up $1.05, or 2.9 percent, at $36.76 in late-morning dealings. Earlier Tuesday, the stock traded as high as $37.24.

Ford's shares fell 23 cents, or 2.7 percent, to $8.42 on the NYSE.

In a note to investors, Merrill auto analyst John Murphy noted that GM's pension fund is overfunded by $17 billion. With pressure mounting for it to cut health care costs, the company's pension assets could be used to shrink its medical-care obligations for retirees.

more...
http://biz.yahoo.com/ap/070213/auto_makers_analyst.html?.v=3

[citizen snips]

94. Alcoa Shares Up on Word of Possible Bids

PITTSBURGH (AP) -- Alcoa Inc. is being targeted by two foreign mining giants who are each preparing $40 billion takeover bids for the aluminum producer, a British newspaper reported. Alcoa shares rose nearly 6 percent Tuesday although some analysts questioned whether such a deal was likely.

BHP Billiton Ltd., the world's largest mining company, and Rio Tinto PLC, the world's second largest iron ore producer, both based in Melbourne, Australia, are said to be considering offers, the Times of London reported in Tuesday's editions, citing unnamed sources.

Alcoa shares rose $1.97 to $34.87 in afternoon trading on the New York Stock Exchange after rising as high as $36.05 earlier in the session.

Officials with the mining companies declined to comment on the report Tuesday, as did Alcoa spokesman Kevin Lowery.

more...
http://biz.yahoo.com/ap/070213/alcoa.html?.v=7

[Ghost Dog]

100. Yeah. A clear punt on the table here. n/t

[citizen snips]

95. KB Home Posts 4Q Loss of $49.6 Million

LOS ANGELES (AP) -- KB Home, one of the nation's biggest homebuilders, said Tuesday it swung to a loss in its fiscal fourth quarter, as it offered price concessions and sales incentives amid a housing slowdown.

For the quarter ended Nov. 30, KB Home posted a loss of $49.6 million, or 64 cents per share, after a profit of $304.4 million, or $3.44 per share during the same period in 2005.

The results included charges related to inventory and joint venture impairments, as well as the abandonment of land option contracts, that totaled $343.3 million.

KB Home Chief Executive Jeffrey Mezger said an oversupply of unsold new and resale homes, reduced affordability, and greater caution among potential homebuyers heightened competition among homebuilders and sellers of existing homes, which prompted the company to use aggressive price concessions and sales incentives.

more...
http://biz.yahoo.com/ap/070213/earns_kb_home.html?.v=5

[citizen snips]

96. Dow Jumps Almost 100 on Takeover Talk

NEW YORK (AP) -- Wall Street stocks jumped Tuesday, as a report that two companies want to buy aluminum producer Alcoa Inc. stoked investors' hopes that takeover activity is on the rise. In midafternoon trading, the Dow rose 85.80, or 0.68 percent, to 12,638.35, after rising by more than 100 points in earlier trading.

Broader stock indicators were also higher. The Standard & Poor's 500 index rose 9.41, or 0.66 percent, to 1,442.78, and the Nasdaq composite index rose 6.75, or 0.28 percent, to 2,457.13.

Australia-based mining companies BHP Billiton Ltd. and Rio Tinto PLC are each considering offering to buy Pittsburgh-based Alcoa for $40 billion, according to the Times of London.

The report comes amid Hindalco Industries Ltd.'s $3.6 billion offer to buy Canadian aluminum maker Novelis Inc., and drugstore operator CVS Corp. bumping up the value of its proposed buy of Caremark Rx Inc. -- signaling that the global economy has some muscle.

more...
http://biz.yahoo.com/ap/070213/wall_street.html?.v=25

[citizen snips]

97. CCE to Slash Work Force by 4.7 Percent

ATLANTA (AP) -- Coca-Cola Enterprises Inc., the biggest bottler of Coca-Cola beverages, said Tuesday it would cut about 3,500 jobs, or 4.7 percent of its work force, as it reported a whopping $1.7 billion loss in the fourth quarter.

The Atlanta-based company said it expects to report a corresponding charge of about $300 million, which will be booked in 2007 and 2008.

The move had been widely anticipated by analysts who said the company has struggled with higher costs for aluminum and other commodities and a shift in consumer tastes away from carbonated beverages to juices, teas and waters.

The company said the restructuring would "create a highly efficient supply chain and order fulfillment structure, and improve customer service by implementing new selling systems for many of our customers."

more...
http://biz.yahoo.com/ap/070213/cce_restructuring.html?.v=8

[citizen snips]

98. Alcatel-Lucent Said to Ax Jobs in France

PARIS (AP) -- Alcatel-Lucent SA plans to cut 1,500 jobs in France over three years, a French labor union official at the Paris-based telecom equipment maker said Tuesday.

The center-left CFDT union's top representative on the Alcatel-Lucent works council, Francis Cauchy, said management had given "a total figure of 1,500 job cuts for French operations."

An Alcatel-Lucent spokeswoman said the company would not comment on planned job cuts while meetings with labor representatives continued.

Alcatel-Lucent said Friday it lost 618 million euros ($803 million) in the fourth quarter -- the first period for which the newly merged company reported combined earnings -- from a 381 million euros profit a year earlier.

more...
http://biz.yahoo.com/ap/070213/france_alcatel_lucent.html?.v=3

[citizen snips]

99. Chips Snap: Himax, Monolithic Power Up

NEW YORK (AP) -- Semiconductor stocks made modest gains in Tuesday's trading, while Himax Technologies Inc. and Monolithic Power Systems Inc. both took dramatic leads ahead of the group.

Shares of Taiwanese chip maker Himax soared after the company posted a 73 percent increase in fourth-quarter income, despite a challenging pricing environment.

Credit Suisse analyst Randy Abrams, who has an "Outperform" rating on the stock, predicted there could be a "rebound in the works."

"We see potential for a solid trade ahead of disciplined TFT (thin film transistors) industry supply growth (better pricing) and still healthy industry demand, which could drive customer focus to shift to delivery over pricing pressures," Abrams wrote in a note to investors.

more...
http://biz.yahoo.com/ap/070213/sector_snap_semiconductors.html?.v=1

[UpInArms]

101. Nasdaq up 3,000 points ... by mistake

http://www.reuters.com/article/bondsNews/idUSN1318215120070213

NEW YORK (Reuters) - Technology bulls may have thought the heady days of the Internet era were back in swing on Tuesday after the Nasdaq composite index surged more than 3,000 points, but the spike was due to a glitch.

The index rose in the morning as high as 5,482.62, well above its recorded March 2000 life-time high of 5,132.52.

"It blew me away," said Bruce Zaro, chief technical strategist at Delta Global Advisors Inc., in Plymouth, Massachusetts. "I think someone pressed the wrong digit."

Indeed, a spokesman for the Nasdaq Stock Market Inc. (NDAQ.O: Quote, Profile, Research) said erroneous trades involving shares of Optimer Pharmaceuticals Inc. (OPTR.O: Quote, Profile, Research) had caused the index to spike higher.

"These erroneous trades were placed through Nasdaq," said spokesman Wayne Lee.

...more...

[54anickel]

106. Closing - Zowie-wow-wow on the DOW!!!

Dow 12,654.85 102.30 (0.81%)
Nasdaq 2,459.88 9.50 (0.39%)
S&P 500 1,444.26 10.89 (0.76%)
10-yr Bond 4.8140% 0.0100
30-yr Bond 4.9010% 0.0150
NYSE Volume 2,654,960,000
Nasdaq Volume 1,904,755,000

4:20 pm : Stocks snapped a three-day losing streak Tuesday as a rumored takeover of a Dow component and upbeat analyst commentary gave investors some confidence to get back into the market.

The day's biggest headline included Alcoa (AA 34.96 +2.06), which surged 6.3% amid reports that mining giants BHP Billiton (BHP 45.05 +1.04) and Rio Tinto (RTP 217.04 +6.61) are mulling separate impending buyout bids as high as $40 bln for the Dow component. The stock, which was up as much as 10% and accounted for a 25-point move on the Dow earlier, pared some of the gains intraday after Lehman dismissed the likelihood of a takeover.

Nonetheless, the Alcoa news left many on Wall Street pricing in the likelihood of more blockbuster M&A deals, which gave a lift to brokerage stocks and played into our Overweight rating on Financials. Also providing a floor of support for the S&P 500's most influential sector were Banks. Dow components like Citigroup (C 53.68 +0.25) and JP Morgan Chase (JPM 50.96 +0.52) advanced after Merrill Lynch said concerns over sub-prime mortgage exposure are "overblown."

Providing further evidence that valuations are reasonable at current levels and temporarily silencing talk of a possible market correction was 3M Co. (MMM 76.33 +1.74). The stock turned in the day's second best performance (+2.3%) on the Dow after announcing plans to repurchase $7 bln in company stock over the next two years.

Staying in the Industrials sector, the ability of transportation stocks to look past a 2.0% surge in oil prices was also noteworthy. Railroads was one of today's best performing S&P industry groups after Bear Stearns cited greater operating efficiencies and a more diversified freight mix as reasons to keep riding the rails.

With regard to oil, crude for March delivery closed at $58.97/bbl after the I.E.A. raised its 2007 forecast for global oil consumption. While higher energy prices are bearish for the economy, and may garner added attention in Fed Chairman Bernanke's semi-annual meeting over the next two days, prices merely rebounding from Monday's 4.0% sell-off provided enough subsequent leadership in the beaten-down Energy sector to act as an offset. As a reminder, policy makers removed the "impetus from energy prices" as an inflation risk from their most recent FOMC statement (Jan. 31).

Another sector providing notable leadership was Consumer Discretionary. Comcast (CMCSA 41.00 +1.02) was the biggest source of sector support, as news that its closest rival, Time Warner Cable, going public lent some validation to the health of the growing cable business. General Motors (GM 36.64 +0.93) surging 2.6% to a new 52-week high after being upgraded to Buy from Sell at Merrill Lynch was another sector bright spot and contributed to the Dow's first 100-point advance this month. BTK -0.1% DJ30 +102.30 DJTA +1.5% DJUA +0.4% DOT +0.5% NASDAQ +9.50 NQ100 +0.3% R2K +0.7% SOX +0.5% SP400 +0.9% SP500 +10.89 XOI +1.5% NASDAQ Dec/Adv/Vol 1191/1818/1.86 bln NYSE Dec/Adv/Vol 954/2338/1.34 bln

3:30 pm : The indices are retracing session highs going into the close as all major averages stay on pace to snap a three-day losing streak. Today's gains are impressive, especially taking into account that concerns Bernanke will present a hawkish view on monetary policy in his Senate testimony tomorrow have restrained enthusiasm of late. However, with the NYSE only recently hacing surpassed 1.0 bln shares, below average volume on the Big Board lends less conviction on the part of buyers that the bulls would like.DJ30 +94.48 NASDAQ +5.49 SP500 +9.43 NASDAQ Dec/Adv/Vol 1363/1617/1.51 bln NYSE Dec/Adv/Vol 1022/2240/1.10 bln

3:00 pm : The Dow and S&P 500 continue to sport solid gains, but continued uncertainty about the Tech's growth prospects now leaves the second most influential sector trading unchanged. While Microsoft (MSFT 29.00 +0.16) snapping an eight-day losing streak is noteworthy, both from a leadership and sentiment standpoint, a nearly 2.0% sell-off in Cisco Systems (CSCO 27.02 -0.51) is acting as an offset. One week ago today, Cisco raised its sales outlook and surged nearly 3% a day later on the news.DJ30 +85.96 NASDAQ +4.31 SP500 +8.50 NASDAQ Dec/Adv/Vol 1277/1702/1.38 bln NYSE Dec/Adv/Vol 938/2308/1.00 bln

[ozymandius]

108. Good night 54anickel.

You beat me to it by a minute. I hope you had a great day with your nephews.

Ozy :hi:

[54anickel]

109. Good night Ozy, sorry about that. I figured you were out celebrating your B-day

tonight. I see the DOW rose for the occassion!

Yep, I had me a grand day with my grand-nephews, but they wore me out!!! :hi: