STOCK MARKET WATCH, Wednesday February 14

[ozymandius]

Wednesday February 14, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 705 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2242 DAYS
WHERE'S OSAMA BIN-LADEN? 1946 DAYS
DAYS SINCE ENRON COLLAPSE = 1906
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 13, 2007

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%)
Gold future... 668.50 +1.20 (+0.18%)
30-Year Bond 4.90% +0.02 (+0.31%)
10-Yr Bond... 4.81% +0.01 (+0.21%)






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. Today's Market WrapUp

Oh, What a Tangled Web We Weave
BY FRANK BARBERA, CMT

Back on January 30th, only two weeks ago, we wrote at length with regard to the deteriorating circumstances at the Sub-Prime Mortgage lenders. As it turned out, events last week saw gasoline being poured on the already burning fire, with tremendous damage unfolding within the sector. How important might this be? The answer is very important; so critical, that it could be THE determining factor on where events go from here in all of the capital markets.

We point to the primacy of the housing market as there is a plethora of statistical evidence that suggests that the Housing Real Estate sector has been a major driver for the economy over the course of the most recent recovery cycle. Mind you, it cannot be lost from sight -- even for one moment -- that the current economic cycle has been, by far and away, the weakest recovery cycle seen in the Untied States since the Great Depression. Just look at the chart below which compares the recovery in U.S. employment in this cycle versus the average of recovery cycles from 1958 to 1982, and recovery cycles in the 1990s. This one has clearly lagged in every conceivable manner, creating fewer jobs over a longer period of time. Of course, we have “full employment” with the lagging unemployment rate holding near historical lows, but the low employment rate is a statistical mirage as it remains low, only because participation in the US overall workforce has been contracting. The US has never seen a contracting participation in the labor force during a so-called “recovery.”

-see chart-

What is happening within the broad economy has been erosion, decay and for the middle class, earnings contraction and severe structural changes. High quality jobs are lost or outsourced and replaced with low paying service sector jobs. Sure, maybe the overall number of 'jobs’ is still high, but what about the income creation of those jobs? That has fallen off the proverbial cliff and is very difficult to measure statistically because at the very high end, Wall Street Investment Bankers, Hedge Fund Managers, Real Estate Moguls, and Developers skew the curve. Outsourcing has been damaging, and the real fallout from re-allocated production is well obscured in the statistical data.

-cut-

In our view, it is this disproportionate dependence on Construction and Real Estate activity that now threatens the broader economy as interest rates have increased dramatically in recent years. Within the Real Estate industry, it is the ultra-sensitive “Option ARMS,” and “Interest Only Loans,” “No Credit Check Loans,” and “Piggy Back” loans that have been a recent product of “Creative Finance,” i.e., The Great Credit Bubble, that are now starting to go sour. These loans, made to clients that in many cases did not have the necessary credit, are known as Sub-Prime Loans, wherein the delinquency rates are now climbing at an alarming pace. Just last week, HSBC Corp, one of the world's largest banks announced that it was raising its provision for bad loans 20% higher than the market was expecting due to “Foreclosures that have shown a higher severity" than expected at the banks Household Finance unit. In a conference call, Chief Executive Michael Geoghegan said, "The major impact was taking into account adjustable mortgage resets," and “The impact of slowing house price growth is being reflected in accelerated delinquency trends across the U.S. sub-prime mortgage market, particularly in the more recent loans." Back in December HSBC noted that the main risk in the near term was in personal lending in the United States, where increases in short-term interest rates are hitting people with adjustable-rate mortgages with the bank also noting that its underlying revenue growth had slowed despite an improvement in third-quarter profit. The slowdown was largely attributable to a weaker performance in HSBC's investment banking arm.

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

[ozymandius]

2. Today's Reports

8:30 AM Retail Sales Jan
Briefing Forecast 0.5%
Market Expects 0.3%
Prior 0.9%

8:30 AM Retail Sales ex-auto Jan
Briefing Forecast 0.6%
Market Expects 0.4%
Prior 1.0%

10:00 AM Business Inventories Dec
Briefing Forecast -0.1%
Market Expects 0.1%
Prior 0.4%

10:30 AM Crude Inventories 02/09
Briefing Forecast NA
Market Expects NA
Prior -449K

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

[UpInArms]

31. 8:30 reports:

05. U.S. Jan. electronic store sales fall 1.2%
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

06. U.S. Nov., Dec. retail sales revised up 0.1% total
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

07. U.S. Jan. retail sales ex-autos, ex-gas up 0.5%
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

08. U.S. Jan. general merchandise store sales up 1.3%
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

09. U.S. Jan. gasoline station sales drop 0.7%
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

10. U.S. Jan. auto dealer sales fall 1.3%
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

11. U.S. Jan. retail sales ex-autos up 0.3% vs. 0.5% expected
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

12. U.S. Jan. retail sales flat vs. 0.6% gain expected
8:30 AM ET, Feb 14, 2007 - 3 minutes ago

[Ghost Dog]

34. U.S. Jan. retail sales flat vs. 0.6% gain expected

http://www.marketwatch.com/news/story/us-jan-retail-sales-flat/story.aspx?guid=%7B9F1ABBED%2DB27C%2D4D83%2D92DE%2DECE707AFD376%7D&dist=dist=rss&siteid=mktw

WASHINGTON (MarketWatch) - Seasonally adjusted retail sales were unchanged in January, the Commerce Department reported Wednesday. Sales excluding autos rose 0.3%. Sales were up 2.3% compared with January of 2006. The results were far below expectations. The median forecast of economists surveyed by MarketWatch predicted headline sales would rise 0.6% and ex-auto sales would rise 0.5%. Sales in the previous two months were revised higher by a total of 0.1 percentage points. Excluding both autos and gas, retail sales rose 0.5% in January. Sales at auto dealers and auto parts stores fell 1.3%. Sales at the mall were good, mirroring the same-store sales results reported by the retail chains last week. Sales at general merchandise stores rose 1.3%.

[UpInArms]

40. US RATE FUTURES-Retail sales take Fed hike out of picture

http://www.reuters.com/article/bondsNews/idUSN1429984320070214

CHICAGO, Feb 14 (Reuters) - U.S. short-term interest rate futures rose marginally on Wednesday's after a government report showed weaker-than-expected retail sales for January, taking chances of a Federal Reserve rate increase out of the picture for the moment.

Response to the data was muted ahead of the appearance on Capitol Hill later today by Fed Chairman Ben Bernanke.

Futures strongly favor the Fed's rate pause continuing through June. Implied chances that the Fed will cut rates in March rose to 2 percent from zero (FFJ7: Quote, Profile, Research).

The implied prospects for a rate cut by year-end (EDZ7: Quote, Profile, Research) rose as high as 84 percent from 74 percent overnight.

The Commerce Department said U.S. retail sales for January were unchanged and sales excluding autos rose by 0.3 percent. Both had been forecast to rise 0.4 percent.

"Fundamentally, the headline January number is a little disappointing but that was offset by the upward revision in December," said David Wyss, chief economist at Standard & Poor's Ratings Services in New York.

...more...

[AnneD]

Say.....

wasn't that when most folks cash in those gift cards? Thought sales were really suppose to go up. :rofl: Guess the Holiday Season was a bust after all. Oh wait-I'm not suppose to have that long of a memory:hide:

[54anickel]

79. Hey, just "shut up and spend!"...or is it save...no wait, spend...howzbout

save to spend...Oh hell I dunno - for now just pay that surprise AMT you find yourself owing this year and be sure to demand a pay decrease so you don't get socked by it again next year. :evilgrin:

Maybe we can get the Dixie Chicks to re-record that AWARD winning tune! Bwahahaha!!!! :freeperheadexplode:

[Ghost Dog]

56. Crude Supply: Energy Dept. (-600,000) vs API (-3.4m)

U.S. crude, gasoline, distillate supplies fall: Energy Dept.

The Energy Department said distillates supplies fell for a third week, down 3 million barrels to 133.3 million for the week ended Feb. 9. Crude supplies fell by 600,000 barrels to 323.9 million. Motor gasoline stocks fell for the first time in nine weeks, down 2 million barrels to total 225.2 million barrels. Following the news, March crude was down 46 cents to $58.60 a barrel. March reformulated gasoline fell 0.41 cent to $1.605 a gallon and March heating oil traded at $1.673 a gallon, down 2.02 cents.

API reports across-the-board fall in petroleum supply

The American Petroleum Institute reported a fall of 372,000 barrels in distillate supplies for the week ended Feb. 9. The Energy Department had reported a decline of 3 million barrels. Motor gasoline supplies were down 603,000 barrels, the API said, vs. the government's reported fall of 2 million. Crude supplies were down 3.4 million barrels, the API said, compared with the government's 600,000-barrel decline.

[ozymandius]

3. Oil prices fall below $59 a barrel

SINGAPORE - Oil prices slipped back in Asian trading Wednesday after a 2.2 percent jump the day before as traders awaited the release of weekly U.S. petroleum inventory data.

Light, sweet crude for March delivery dropped 12 cents to $58.94 a barrel in electronic trading on the New York Mercantile Exchange, mid-afternoon in Singapore.

Brent crude contract for March delivery retreated 21 cents to $58.57 a barrel on the ICE Futures exchange in London.

-cut-

Weekly U.S. Department of Energy's supply data due later Wednesday are expected to show some declines following a cold snap in the U.S. Northeast, a major consumer of heating oil.

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

[ozymandius]

4. Chrysler to announce restructuring plan

AUBURN HILLS, Mich. - Analysts say 10,000 hourly workers probably will lose their jobs as part of DaimlerChrysler's effort to cut costs at its Chrysler Group by more than $2 billion, or $1,000 for every car sold in the United States.

Thousands of Chrysler workers were waiting to learn whether they will remain part of a leaner, more competitive company Wednesday, when DaimlerChrysler AG planned to announce a major restructuring at the headquarters of its U.S. operations.

In addition to the hourly workers, analysts estimate another 1,000 to 1,500 salaried workers could be given pink slips.

-cut-

Much of the downsizing, analysts believe, will come at plants that make truck-based products, victims of the change in consumer tastes from sport utility vehicles and trucks to more fuel efficient car-based vehicles.

more

[Ghost Dog]

28. Chrysler revamp details to eclipse Daimler results

http://today.reuters.co.uk/news/articlenews.aspx?type=motoringSummary&storyID=2007-02-12T094749Z_01_NOA234841_RTRUKOC_0_CHRYSLER-REVAMP.xml
Mon Feb 12, 2007 9:42 AM GMT137

FRANKFURT (Reuters) - DaimlerChrysler unveils its latest restructuring plan for ailing U.S. arm Chrysler on Wednesday, almost six years to the day after its first try at shoring up profits from across the Atlantic.

Analysts expect the world's fifth-biggest carmaker to cut thousands of jobs and close two North American plants at Chrysler, which Chief Executive Dieter Zetsche ran until taking the top spot in Stuttgart at the start of last year.

Zetsche's credibility is at stake after a shock profit warning at Chrysler last year as it sleepwalked through an abrupt shift in consumer tastes that brutally exposed its reliance on trucks and SUVs at a time of high fuel prices.

Analysts polled by Reuters expect Chrysler to have posted a 2006 operating loss of more than 1 billion euros (670 million pounds), its third full-year loss since its 1998 merger with Daimler-Benz.

But the market will seize on the strategy to halt the red ink rather than the numbers themselves.

"Chrysler has 12 major assembly plants and 17 stamping and component facilities in North America. We estimate as many as half of Chrysler's assembly plants could be in some way affected by the restructuring," Morgan Stanley said in a research note.

The plant in Newark, Delaware, is especially vulnerable, analysts say. Closing that plant would cost around 300 million euros but save more than 200 million a year, worth nearly 15 euro cents in earnings per share, Morgan Stanley estimated.

/...


DaimlerChrysler's Chrysler Group Plans to Cut 10,000 Jobs-Reuters
Mon 5 Feb 2007 20:30 PM GMT
Reuters reported that DaimlerChrysler's Chrysler Group plans to cut more than 10,000 factory jobs and close at least two plants to return the United States-based unit to profitability, the Detroit News reported. A secret restructuring plan dubbed "Project X" is focused on transforming Chrysler into a smaller, more efficient automaker with closer ties to its German parent company and the Mercedes-Benz luxury division. A restructuring plan for Chrysler is scheduled to be announced on February 14 in conjunction with fourth-quarter results for its parent company. The plan would include some "changes" to manufacturing operations.

[Ghost Dog]

30. Chrysler loss soars ahead of cuts

http://money.cnn.com/2007/02/14/news/companies/chrysler/index.htm?postversion=2007021408
Parent sees earnings improve even as U.S. unit posts $1.5 billion loss for '06; job cut announcement expected soon.

NEW YORK (CNNMoney.com) -- Losses continue to pile up at Chrysler Group in the fourth quarter, parent DaimlerChrysler reported Wednesday, as company officials prepared to unveil a restructuring of its North American unit that will likely include plant closings and elimination of about 10,000 factory workers.

The company announced that Chrysler's full-year loss was €1.12 billion, which translates into $1.45 billion. A year earlier, as competitors General Motors (Charts) and Ford Motor (Charts) struggled with losses from their auto operations, Chrysler Group posted a $1.82 billion profit.
DaimlerChrysler profits improved despite rising losses at its Chrysler unit.
DaimlerChrysler profits improved despite rising losses at its Chrysler unit.

Chrysler was hurt by declining sales, particularly in its pickup trucks and SUVs, as the company lost its long-held position as the No. 3 U.S. automaker to fall behind Toyota Motor (Charts) during the year. Honda Motor (Charts) also made gains at the expense of the traditional Big Three Detroit automakers.

/..

[Ghost Dog]

32. DaimlerChrysler quarterly profit beats expectations

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tnBusinessNews&storyID=2007-02-14T131506Z_01_WEB2193_RTRIDST_0_BUSINESS-DAIMLERCHRYSLER-EARNINGS-DC.XML

FRANKFURT (Reuters) - Fourth-quarter operating profit at DaimlerChrysler rose to 1.877 billion euros ($2.45 billion) despite an operating loss at U.S. arm Chrysler, the world's fifth-biggest carmaker said on Wednesday.

Hit by consumer reluctance to buy trucks and sport utility vehicles at a time of high fuel prices, Chrysler swung to a loss of 124 million euros, but premium division Mercedes Car Group boosted operating profit to 1.295 billion.

Analysts polled by Reuters had on average expected group operating profit of 1.47 billion euros in the quarter, up from 1.048 billion a year earlier.

Daimler proposed a flat dividend of 1.50 euros per share.

It forecast total unit sales would increase slightly in 2007.

/...

[Ghost Dog]

44. Chrysler to cut 13,000 jobs

http://money.cnn.com/2007/02/14/news/companies/chrysler_jobcuts/index.htm?section=money_latest
Troubled unit of DaimlerChrysler expects to cut 11,000 factory workers, 2,000 salaried jobs, close one assembly line after losses soar.

NEW YORK (CNNMoney.com) -- Chrysler Group, whose year-long slump has dragged it down to fourth place among U.S. automakers, announced plans Wednesday to cut 13,000 jobs through 2009 as it attempts to stem widening losses.

The cuts represent 16 percent of the staff at the North American unit of DaimlerChrysler (Charts), as it eliminates 9,000 U.S. factory workers and another 2,000 factory workers in Canada over the next three years. In addition, 2,000 salaried staff cuts will be spread over the next two years.

The company also said it will close the SUV Assembly line in Newark, Del., by 2009, after eliminating one of its two shifts later this year. It also plans to eliminate a shift at the Warren, Mich., truck plant later this year and a shift at the St. Louis South assembly plant in 2008.

The factory closings and downsizings will reduce the company's capacity by about 400,000 vehicles a year.

...

The company did not detail how the job cuts will be made. The union-represented workers have job guarantees that pay them nearly full salary if they are laid off, but those gurantees only run until the end of the current labor contract in September.

/...

[ozymandius]

5. Analysts: Alcoa takeover bid unlikely

SYDNEY, Australia - Potential takeover bids of Alcoa Inc. by one of two Australian-based companies reportedly considering such a move were unlikely because of the U.S. aluminum producer's company dynamics, cost factors and increasing Chinese competition, analysts said Wednesday.

BHP Billiton Ltd., the world's largest mining company, and Rio Tinto PLC, the world's second-largest iron ore producer, declined to comment on the takeover talk, sparked Tuesday by an unsourced report in the Times newspaper in London.

The report said the Melbourne-based mining companies were considering offers of up to $40 billion (euro31 billion) bid for the U.S. aluminum giant. Alcoa shares rose 6.38 percent to close at $35 Tuesday on the New York Stock Exchange after rising as high as $36.05 earlier in the session.

-cut-

Analysts said they doubted a bid was pending, noting that BHP or Rio Tinto are focused more on the mining and raw materials end of the business than "downstream" industries like the manufacture of aerospace equipment and auto parts, which Alcoa emphasizes.

more

[ozymandius]

6. Stocks set for cautious open ahead of Bernanke

LONDON (Reuters) - U.S. shares are expected to open slightly firmer on Wednesday ahead of congressional testimony from Federal Reserve Chairman Ben Bernanke, while earnings from Coca-Cola (NYSE:KO - news) will dominate a thin earnings calendar.

-cut-

Bernanke's testimony to Congress later on Wednesday and again on Thursday will be scrutinized for hints on the outlook for U.S. interest rates.

It may also give key signals to markets about how fast U.S. economic growth will return to trend after slowing somewhat. U.S. growth is seen as key to the general well-being of the global economy.

more

[Ghost Dog]

47. Bernanke to Push Pause on Hill

http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20070214-000029-0053

WASHINGTON (Dow Jones) - Federal Reserve chief Ben Bernanke will tell Wall Street Wednesday that he's comfortable holding interest rates steady for a prolonged period, but will include a gentle reminder not to get too comfortable and forget that interest rates might have to rise at some point, economists said.

"We expect no substantial changes to the underlying theme, which is that the U.S. economy is transitioning from a period of above-trend growth to a more sustainable growth rate and core inflation continues to moderate although upside risks to the inflation outlook persist," said economists at Stone & McCarthy.

This has been the message in the FOMC's last policy statement released on Jan. 31 and the few Fed speeches since that meeting, analysts said.

"We should take the FOMC's statement seriously. The committee seems relatively comfortable where the funds rate is, and think it is pretty well positioned given the current outlook, but still sees some risks that rates would have to go higher," said Brian Sack, a former Fed staffer and now an economist with MacroEconomic Advisors.

"We don't think there is going to be no major change in the policy message," he said.

Mike Englund, chief economist at Action Economics, said investors shouldn't expect any "hand signals" from Bernanke on monetary policy.

There is no need for Bernanke to guide markets as Wall Street expectations of monetary policy and the Fed's own outlook are much more in tune than they were two months ago, Sack said.

/...

[Ghost Dog]

48. Bernanke stresses Fed will take action if inflation flares

http://www.marketwatch.com/news/story/bernanke-stresses-fed-take-action/story.aspx?guid=%7BAC77E0ED%2D5C4A%2D46CA%2DA63F%2D46F54C91672A%7D

WASHINGTON (MarketWatch) - Fed chief Ben Bernanke said Wednesday that the central bank is comfortable with rates at their current levels but stressed that further rate hikes could occur if the inflation outlook worsens. "So far, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing of core inflation," Bernanke said in his prepared testimony about monetary policy for the Senate Banking Committee. But the risk that inflation will not gradually moderate is the "predominant policy concern," he said. The FOMC "is prepared to take action to address inflation risks if developments warrant," Bernanke said. The Fed chairman's testimony was broadly in line with the FOMC's most recent policy statement on Jan. 31 and with the expectations of Fed watchers that Bernanke would warn about higher rates but be in no rush to tighten monetary policy.

[ozymandius]

7. U.S. Trade deficit hits new record high

WASHINGTON - The U.S. trade deficit set a record for a fifth straight year, and the imbalance with China soared to an all-time high as well.

The Bush administration pledged to keep pursuing its free-trade policies, while Democrats now controlling Congress demanded a change in course.

The gap between what the U.S. sells abroad and what it imports rose to a record $763.6 billion last year, up 6.5 percent from the previous record of $716.7 billion in 2005, the Commerce Department reported Tuesday.

-cut-

House Speaker Nancy Pelosi and 13 other top House Democrats sent Bush a letter saying the new trade figures underscored the urgency for a course change on trade.

more

[ozymandius]

8. Inverted yield curve may no longer be sign of recession

One of Wall Street's most ominous — and accurate — recession indicators has been flashing red for so long that some say it has lost its relevance.

The inverted yield curve — which occurs when the yields on long-term Treasuries fall below short-term yields — is a time-honored recession signal. Normally, long-term yields should exceed short-term ones.

Yields on the 10-year Treasury note, often used as a benchmark for 30-year fixed-rate mortgages, have fallen below yields on six-month Treasury bills for eight-straight months with no recession, the longest such period since 1981, says Joseph Kalish of Ned Davis Research. The curve has been inverted 11 of the past 13 months.

-cut-

Stock traders have been betting that the Fed would start lowering rates as the economy slows, making the yield curve less inverted. Most economists now think the Fed won't cut rates until late this year, if at all. But that's better than the other way the curve could return to normal: a jump in long-term bond rates.

http://www.usatoday.com/money/economy/2007-02-13-curve-usat_x.htm?csp=N009

[54anickel]

36. Well now, see....It really IS different this time! But, if all of those old tried

and true markers are now irrelevant, aren't we sort of drifting along without a compass? That's what always gets me when ever this schmucks start yammering about how it's all different this time. Strikes me that we're venturing into uncharted territory with no navigation system, and with the Fed loosing control to hedge funds and CDOs, no rudder either. :shrug:

[UpInArms]

37. looks a lot like 1928

http://www.huppi.com/kangaroo/Timeline.htm

1928

The construction boom is over.

Farmers' share of the national income has dropped from 15 to 9 percent since 1920.

Between May 1928 and September 1929, the average prices of stocks will rise 40 percent. Trading will mushroom from 2-3 million shares per day to over 5 million. The boom is largely artificial.

[54anickel]

46. Ugh, that timeline is always a nasty look back

1920
Organized labor declines throughout the decade. The United Mine Workers Union will see its membership fall from 500,000 in 1920 to 75,000 in 1928. The American Federation of Labor would fall from 5.1 million in 1920 to 3.4 million in 1929.

2006
In 2006, 12.0 percent of employed wage and salary workers were union members, down from 12.5 percent a year earlier, the Bureau of Labor Statistics reported January 25. The number of persons belonging to a union fell by 326,000 in 2006 to 15.4 million. The union membership rate has steadily declined from 20.1 percent in 1983, the first year for which comparable union data are available.
http://hr.cch.com/news/hrm/021307a.asp


1920
Over the decade, about 1,200 mergers will swallow up more than 6,000 previously independent companies; by 1929, only 200 corporations will control over half of all American industry.

2006
What were supposed to be the two biggest deals of 2006 didn't happen, but New Jersey companies still contributed to the record deal-making last year. Mergers and acquisitions hit $4 trillion in total value on Wall Street, and the trend is expected to continue into 2007.
http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXkyOSZmZ2JlbDdmN3ZxZWVFRXl5NzA3NjMyMSZ5cmlyeTdmNzE3Zjd2cWVlRUV5eTI=

1920
By the end of the decade, the bottom 80 percent of all income-earners will be removed from the tax rolls completely. Taxes on the rich will fall throughout the decade.
By 1929, the richest 1 percent will own 40 percent of the nation's wealth. The bottom 93 percent will have experienced a 4 percent drop in real disposable per-capita income between 1923 and 1929.

The middle class comprises only 15 to 20 percent of all Americans.

2007 - Claiming it's still up for debate
http://money.cnn.com/blogs/generationrisk/2007/02/middle-class-isnt-so-squeezed-after.html
The middle class isn't so squeezed after all
So says David Brooks in his Sunday New York Times column, summarizing a paper from the Democratic activist group Third Way:

The first myth, , is the myth of the failing middle class. It's true there are more households headed by young and old people, who tend to have lower incomes. But if you take households headed by people in their prime working years, 25 to 59, you find those people are not failing. Their median income is $61,000. If they are married, their median income is $72,000. Those are decent incomes in most parts of the country.
Moreover, their living standards are not stagnant. Between 1979 and 2005, the percentage of prime-age households making over $100,000 in current dollars rose by 12.7 percentage points....

The Third Way authors also dispute warnings of increasing income volatility. The main reason incomes have grown more volatile over the past decades is motherhood, they write. As women play a more significant role in the economy, their movements in and out of the labor force to care for children increase volatility.


You can read the entire Brooks column here. Brooks' point is that Democrats are crazy if they think American voters will respond to a "populist" economic message in 2008. But what he barely hints at is that even this report (read it here), from a decidedly centrist group, describes breathtaking economic changes since 1979. At one point, the report's authors compare the "old rules" of the economy to the "new rules" Here's a sampling:

1925
The top tax rate is lowered to 25 percent - the lowest top rate in the eight decades since World War I.

2007
http://tracypress.com/content/view/7753/2/
The AMT was originally designed so those making the most — those who could afford lawyers and accountants to skate around and through loopholes in the tax code — wouldn’t be able to dodge their societal responsibility by paying their due taxes. Now, because the AMT law was written without an inflation adjuster, more and more middle class taxpayers are caught by it — an estimated 23 million by tax year 2007 if it isn’t amended.

And check this out. Taking from a CNN.com report: “The Tax Policy Center estimates that by 2010, nearly 90 percent of married couples with two or more children and an adjusted gross income between $75,000 and $100,000 will be subject to AMT.” That’s middle class families supporting the gears of government.

However, the president’s budget proposal only calls for one more year of AMT relief for the middle class. Bush’s budget uses this to mask the true cost of his economic policies, which include tax cuts that mostly benefit those who make more in a year than normal Americans make in five — remember, the 2006 median income for a California family of four is $67,814.

Many politicians with wealthy donors want to abolish the AMT, but the AMT could simply be adjusted so that average American workers don’t get it in the shorts come tax day.

Chances are legislators will do something like this to help their middle-income constituents. And Bush knows this. But that isn’t in the Bush game plan, because doing that would mean he couldn’t balance the budget while protecting his darling tax cuts, one of the president’s primary goals since winning a second term.

[ozymandius]

49. That's why I scarcely give Tim W. Wood a nod.

The cycles peddler is irrelevant. Just as the boorish hoo-ha about these fictional "good times" is irrelevant too. Everything is different since the dot-com days. All that really mattered was pushing other people's money around, collect a fee and eat the proceeds. Smoke and mirrors - that's all it is.

[Demeter]

42. Right........If This Is the Good Times, We're In Trouble

Michigan is dying, people. New Orleans is dead and rotting. How many people, how much of the future, is sacrificed to the great god GREED for its loyal servants, the greedy?

[Ghost Dog]

68. Bernanke-inverted yield curve not economic threat

http://www.reuters.com/article/governmentFilingsNews/idUSWAT00696320070214

WASHINGTON, Feb 14 (Reuters) - Federal Reserve Chairman Ben Bernanke said the prolonged inversion of the U.S. Treasury debt yield curve does not signal a slowing economy, but it could pressure profits at smaller banks.

"There's been a good bit of evidence that the declines in the term premium and perhaps a great deal of saving chasing a limited number of investment opportunities around the world have led to a somewhat permanent flattening or even inversion of the yield curve, and that pattern does not necessarily predict a slowing in the economy or recession," Bernanke said on Wednesday in testimony to the Senate Banking Committee.

He said he did not see the inversion as putting "tremendous pressure" on the banking sector, as many banks were able to use hedges and other financial instruments to deal with the problem of higher short-term deposit rates and lower long-term loan rates. Smaller banks may have more difficulty with this, he said.

/.

[JNelson6563]

9. Happy Valentine's Day beloved Marketeers!

:loveya: :loveya: :loveya:

Many thanks for your hard work on keeping us up to date ont he financial front. You guys rock! And a special thanks to you Ozy for kicking things off every day.

Rock on.

Julie

[ozymandius]

10. Thank you Julie.

Love and blessings to you too. Not just today. Always.

The same goes to all my Marketeer friends.

:grouphug:

Ozy

[UpInArms]

16. Happy Valentine's Day to you too, Ozy!

and to all the Marketeers!



:grouphug:

:loveya::loveya::loveya::loveya::loveya::loveya:

[UpInArms]

14. Happy Valentine's Day to you too, Julie!

:loveya:

:grouphug:

[AnneD]

52. Morning Marketeers...

;donut: and lurkers. Happy VD to you too-OK, old joke. Let's hope we don't have a Valentine's Day Massacre on the street today.

I am back from the belly of the beast. We managed to catch the last plane out of Baltimore before the ice hit. It was the first time I have actually been in a few of those buildings (they are new since the last time I visited). I saw so many offices (and a few that I popped my head into to show them my support (Boxer, Rangel, etc).

We were there to lobby them about fully funding the CHIPS program-you know health care for poor children. Kay Bailey Hutchenson and her staff were agreeable to help us dispite our differences.........

But Cornyn stood us up (we waited over 30 min for a scheduled appointment with his rep), his constituants....A BIG NO NO. We happened to have a photographer with us and we took some pictures out side his office. In one we were pointing at his name and the second one we were shrugging (like where is he). We were laughing and carrying on. We decided to use them in our letter and donate them to anyone that opposes him. Ignoring the peons is so typical with him.

Well, we must have embarrassed them because 10 minutes after we arrived back at the hotel, his office was on the phone wanting to reschedule a telephone conference with us. Before anyone got impressed-I told them we had embarrassed them into acknowledging us peons. That was our funniest moment.

Happy hunting and watch out for the bears.

[ozymandius]

11. Bush’s Economic Advisers Call for Lower Taxes and Freer Trade

WASHINGTON, Feb. 12 — The Bush administration reveled in the economy’s continued expansion on Monday, as the president’s advisers stepped up their calls for freer trade, lower taxes and a continued openness to immigration.

-cut-

The optimistic outlook came at a time when the economy’s broad indicators have been surprisingly favorable. Real wages rose faster than inflation last year and unemployment remains low, at 4.6 percent. Consumers continue to spend at a healthy clip and inflation has ebbed, in part because oil prices have declined sharply from last summer.

-cut-

In a curious omission, the White House advisers barely mentioned the biggest and most immediate tax issue confronting both President Bush and Congress: the alternative minimum tax, a parallel tax that was originally aimed at millionaires but will engulf 20 million households this year if it is not changed.

Mr. Bush and Democrats alike want to repeal the A.M.T., a change that would cost $70 billion in 2007 and more than $1 trillion over the next decade. In 2004, Mr. Bush hoped to address the issue as part of a sweeping overhaul of the tax code.

more

[NC_Nurse]

22. More of the same

horseshit from these jackasses. :puke:

[AnneD]

53. remember...

we are the donkeys and we don't do horseshit. I think the term you are looking for is elephant shit. :)

[Ghost Dog]

27. US government in dock as trade gap rockets

http://www.afp.com/english/news/stories/070214031118.wozk0x0u.html

WASHINGTON (AFP) - The US government's campaign to renew its power to accelerate trade pacts through a restive Congress is likely to have been hurt by news of another black hole in the country's trade balance.

Sky-high oil prices and Americans' insatiable hunger for Chinese goods drove the US trade deficit to a record high of 763.6 billion dollars in 2006, the Commerce Department said Tuesday.

The December gap alone was 61.2 billion dollars, up from 58.1 billion in November. It was the highest monthly total since September's 64.4 billion.

Economists said the deficit was likely to have peaked for now, with oil prices well down from all-time highs above 78 dollars a barrel reached in mid-2006.

But there is no sign of a peak to pressure on the US government to get tough against countries that stand accused of cheating their way to trade dominance, including China and Japan.

"Getting this Congress to renew Trade Promotion Authority (TPA) was already an uphill battle," University of Maryland economist Peter Morici said.

"The administration has to reconcile itself to the simple fact that until it fixes the exchange rate problem with China and Japan, it won't get what it wants from Congress to negotiate new trade powers," he said.

The trade report was a public relations nightmare for the US administration, which only on Monday was warning of a loss of prestige and prosperity unless TPA is renewed beyond its scheduled expiration on July 1.

"This could be one of the most important actions Congress will take in the coming months to sustain our country's prosperity at home and leadership in the international marketplace," US Trade Representative Susan Schwab said.

/...

[54anickel]

59. A General Theory of Stupidity (Bonner)

http://www.321gold.com/editorials/bonner/bonner021207.html

"Two things are infinite: The universe and human stupidity; and I'm not sure about the universe."
-Albert Einstein

The big news this week... at least before the premature exit of Anna Nicole Smith... was the new U.S. budget proposal. The Bush Administration revealed itself - once again - to be the most spend-thrift regime of all time. No publicly elected government has ever spent so much of its citizens' money, or so much money that its citizens didn't have. Nor did any government ever redistribute so much wealth - from the taxpayers to the defense contractors... from the middle classes to the financial classes... and (most importantly) from future generations to the folks living right here and right now.

The whole spectacle is breathtaking... and like all public spectacles... absurd.

Nearly half a trillion dollars in debt will be added over the next two years, according to the Bush plan. But then, in the year 2012, the feds promised to deliver a modest surplus - of just over $60 billion. Of course, that will only happen if nothing goes wrong in Iraq or Afghanistan (how could it?) and you are willing to employ accountants who are inveterate liars.

Even in the best case, there is no plausible way in which Americans can repay their debts - public or private. The public debt alone equals more than $100,000 for every family of four. The interest would be about $5,000. How many families could add that to their budgets? What sort of a politician would ask them to? Currently, the feds can't even keep up with the interest payments. So, the debt feeds on itself... and the whole shebang just keeps getting bigger and bigger. More money. More credit. More debt.

We thought about it all last night... this time pausing neither for prayer nor alcohol. What we were looking for was an answer to two related questions: How big can this credit bubble get? And, more profoundly, how stupid can people be? The questions keep coming up, intertwined like a pole dancer and a bare leg - when we watch TV or hear the news, when we listen to financial reports, when we read about the new U.S. budget. The views... the prices... the numbers - they are enough to make an imbecile take to thought... and a sober man to drink.

more...

[ozymandius]

12. CVS raises bid for Caremark; vote delayed

Caremark Rx Inc. investors on Tuesday persuaded a judge to block next week's planned shareholder vote on CVS Corp.'s $25.7 billion buyout offer until March 9.

Delaware Chancery Court Judge William Chandler agreed with a Louisiana pension fund's request to prevent Caremark, the nation's second-largest manager of pharmacy benefits, from holding a planned Tuesday meeting so that investors have time to properly consider CVS' increased offer for the company.

very short

[UpInArms]

13. dollar watch

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

Last trade 84.45 Change -0.24 (-0.28%)

US Dollar Slips as Wider Trade Deficit Signals Downward Revisions to Q4 GDP

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Slips_as_Wider_1171406126129.html

US Dollar - The larger US trade deficit has helped to contribute to the US dollar’s weakness, but most of the sell-off in the greenback today was triggered by positive Eurozone data and the continual liquidation of short Yen trades. The trade deficit broke back above the $60 billion mark to rise to -$61.2 billion in the month of December. Imports increased due to rising oil prices and demand for foreign autos and apparel. The deterioration in the trade balance in the last month of the year suggests that fourth quarter GDP may not be as strong as initially reported. Back in January, the advance release of fourth quarter GDP was 3.5 percent. This estimate was based upon a far smaller trade deficit and now that the deficit has widened, fourth quarter GDP growth may be much closer to the 2 to 2.5 percent range. Tomorrow we have the marquee events of the week, namely US retail sales and Federal Reserve Chairman Ben Bernanke’s semi-annual testimony on the economy and monetary policy. Consumer spending accounts for 70 percent of US GDP and how it fared last month will determine whether the market continues to give weight to the effects of today’s trade report on fourth quarter GDP. Incoming weekly and private sector spending data has been strong but the weakness in auto sales could hold back overall spending. Gas prices did not change much in January which means that it will have little impact on the overall release. Instead, we are watching gift card purchases since it was a big contributor to the retail sales report last January. As for Bernanke, odds are in favor of more optimistic comments from the Federal Reserve Chairman. He will most likely pat himself on the back for the rebound in growth. Inflation will continue to remain a concern for the central bank but at the same time, the housing market is only beginning to stabilize and they may signal that they need more time to review incoming data before considering raising interest rates.

...more...

Dollar Little Moved By Trade Account As Bernanke Prepares For Testimony

http://www.dailyfx.com/story/currency/eur_news/Dollar_Little_Moved_By_Trade_1171391172569.html

Economic data has once again taken the helm for the greenback. Keying off another packed week of scheduled indicators, a small rebound in the long-standing deficit was played down as more pressing event risk looms just over the horizon.

By mid-day in the New York session, traders cut the EURUSD 90-point run short just below the range high at 1.3045. Plunging off of its own technical top, USDCHF accelerated into a 100-point decline that ended in an eve bottom at 1.2445. Driven by its own news, the British pound dropped 95 points in a little under 15 minutes before 1.94 could step in as immediate support. Finally, the future of the carry seems still in question as the yen produced a choppy, 50-point advance against the dollar.

Though short-term price action seemed to stabilize when the North American crew started to dive into the market, position traders found an active valuation on today’s trade report. According to the US Commerce Department’s numbers, the monthly trade deficit grew more than expected to $61.2 billion. Taking the move in context, the rise was the first in four months from the lowest level since July of 2005. However, the headline number has long diminished as a market driver as traders broaden their perspectives to the bigger trends in order to smooth out unwanted price fluctuations. Nevertheless, there are a few key statistics which will concern, if not economists, then politicians and local industry leaders. In December, auto imports jumped 7.2 percent to a record $22.6 billion. Also, though the shortfall in trade with China slipped from $22.9 billion to $19 billion, a record $40 billion worth of consumer goods imports will keep aggressive Congressman on the warpath. Perhaps the most important take away from this report is its potential influence on the revisions of fourth quarter GDP. Accelerating to 3.5 percent in the fourth quarter, the quarterly growth numbers are being approached very cautiously as revisions have been quite hearty in the past.

Outside of the comfortable limits of the US data calendar, a few other events were diminishing the sheen of the dollar in the overnight. Last night, headlines splashed an agreement in the six nation talks to put North Korea off of its pursuit for nuclear arms. As the geo-political risk wanes, so does the necessity of using the dollar as a safe haven. Further eroding the dollar’s appeal Tuesday morning were the strong growth numbers from Europe’s biggest member nations. With the European regional economy expanding at an impressive 3.3 percent, the international effort to diversify away from the dollar seems to have an encouraging foothold. Looking ahead to tomorrow’s docket, the real fireworks will begin. Short-term traders will find some satisfaction in the January retail sales report; but all will yield to Federal Reserve Chairman Ben Bernanke’s testimony due only a short time later.

...more...

[Ghost Dog]

21. Euro boosted by robust growth, Bernanke eyed

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070214:MTFH75405_2007-02-14_11-25-47_L14437271&type=comktNews&rpc=44

LONDON, Feb 14 (Reuters) - The euro rallied broadly on Wednesday, hitting a six-week high against the dollar and 8-year peak versus the Swiss franc as this week's strong euro zone growth data boosted expectations for further monetary tighening. The dollar was steady against the yen ahead of Federal Reserve Chairman Ben Bernanke's two-day congressional testimony which could give further insight on the future path of U.S. interest rates.

Data on Tuesday showed growth in the euro zone economy surged to 0.9 percent in the fourth quarter, on par with U.S. growth rates. This cemented expectations the European Central Bank will raise interest rates to 3.75 percent in March and perhaps more later this year.

"Clearly the European story is quite a positive one as the (growth) data was very strong," Westpac currency strategist Geoff Kendrick said. However, he said the euro's rise could also be attributed to a broader softening in the dollar as markets pondered where the Fed stands now on rates, currently at 5.25 percent. "The market is moving in to a new phase where they wonder what the next move is -- is it more Fed hikes or will they put some of those cuts back in. We have to wait for Bernanke this afternoon," he added.

By 1101 GMT, the euro was up 0.4 percent on the day at $1.3088, having risen as high as $1.3100 <EUR=>, its highest since early January. It was up 0.3 percent at 158.40 yen <EURJPY=>, inching closer to Monday's record high of 159.00. It rose to 1.6281 per Swiss franc <EURCHF=>, its strongest since early 1999. The dollar was steady at 121.17 yen <JPY=>.

/...

[Ghost Dog]

33. Dollar Loses Handle - Multi Week Dollar High Likely In Place

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Dollar_Loses_Handle___Multi_1171457591347.html?engine=rss&keyword=article
Wednesday, 14 February 2007 11:52:46 GMT
Written by Jamie Saettele, Technical Currency Analyst

• Euro Tests 1.3100
• Japanese Yen 121.00 Resistance (USDJPY Support)
• British Pound Takes Out 1.9500
• Swiss Franc 1.2375 Still Key
• Canadian Dollar 5 Waves Up (Down in USDCAD)
• Australian Dollar Rallies In 5 Waves
• New Zealand Dollar Digests Gains



EURUSD – The break above 1.3066 strongly suggests that 1.2876 marked the end of a bearish wave at 1.2865. The decline from 1.3367 is either an A wave or a truncated 1st wave (truncated because the 5th wave did not drop below wave 3). In either case, a countertrend rally to fibo resistance is likely the next significant move. The 61.8% of 1.3367-1.2865 at 1.3177 bears watching as does the 78.6% at 1.3261. In the short term, there are a distinct 5 waves up from 1.2941 to 1.3105, so look for a setback towards the 38.2% at 1.3042 (which also is aligned with former resistance, which should now be support).

/more...

[54anickel]

35. 'Intervention hurt Singapore dollar'

http://www.bruneitimes.com.bn/details.php?shape_ID=20703

THE Singapore dollar fell against the US dollar on Tuesday, hurt by suspected central bank intervention overnight, but other Asian currencies stuck to tight ranges as markets waited for a fresh steer.

Dealers were puzzled by suspected US dollar buying by the Monetary Authority of Singapore during London trading hours on Monday because they estimated the Singapore dollar was not at the extreme end of its policy trading band.

The Singapore dollar was trading at 1.5407 per US dollar, down almost 0.5 per cent and underperforming its Asian counterparts. It weakened as far as 1.5419 overnight, its lowest level since January 29, Reuters data shows.

"The intervention last night was pretty strong, we think it was in the region of US$600-700 million," said a trader in Singapore.

"We are at a bit of a loss as to why they intervened. Maybe they were trying to pre-empt any fall in dollar/yen."

snip>

"Essentially the market was caught off guard. There may be some interest now to cover US dollar short positions," said Emmanuel Ng, a currency strategist at OCBC Bank.

Trade in other Asian currencies was generally subdued, with focus shifting to this week's key events notably, congressional testimony on the economic outlook by US Federal Reserve Chairman Ben Bernanke on Wednesday and Thursday and Japanese economic growth data on Thursday.

more...

[54anickel]

38. Gold Rises to 6-Month High; Dollar's Fall Spurs Investor Demand

http://www.bloomberg.com/apps/news?pid=20601012&sid=a3FtuvSyEDPA&refer=commodities

Feb. 14 (Bloomberg) -- Gold climbed to a six-month high in London as the dollar extended declines against the euro, spurring demand for the precious metal as an alternative asset.

Investment demand for gold in exchange-traded funds, or ETFs, tracked by the World Gold Council has increased 2.1 percent this year to 18.5 million ounces. The gains accelerated this week as the dollar fell against the euro to the lowest since Jan. 4.

``We feel far more confident with the current market situation than a year ago when there was a lot of speculative demand,'' said Markus Bachmann, manager of the $280 million Craton Capital Precious Metals Fund in Johannesburg. ``This is very long term money'' going into gold now, he said.

snip>

``If you look across the precious metals asset class, price action consistently is giving you a bullish long term theme regardless of the specific metal,'' Curry said.

snip>

Gold is being supported by investor demand for a haven because of increased tensions in the Middle East and South Korea, said Bernard Sin, chief trader at MKS Finance in Geneva. ``In Iran, in South Korea, in Lebanon, it is basically geopolitically bullish for gold.'' Jewelers, the biggest users of gold, are also buying bullion before China's Lunar New Year holiday next week, he said.

Rumors of war, it's not just for defense contractors anymore :eyes: :grr:

more...

[UpInArms]

39. peekin' at the slippin' buck

Last trade 84.38 Change -0.31 (-0.37%)

Settle Time 15:00 Open 84.72

Previous Close 84.69 High 84.78

Low 84.31 2007-02-14 09:03:45, 30 min delay

52wk High 91.16 52wk High Date 2006-03-10

52wk Low 82.24 52wk Low Date 2006-12-05

Open Time 19:00 Close Time 15:00

[54anickel]

54. Dump the Dollar! - How the World Can Stop Bush (Paul Craig Roberts)

http://www.counterpunch.com/roberts02122007.html

What would be the consequences of a US or Israeli attack on Iran's nuclear energy sites?

At the 2006 Perdana Global Peace Forum, Australian medical scientist Dr. Helen Caldicott provided an authoritative analysis of the devastating impact on human life that would result from the radiation release from such an attack.

Dr. Caldicott described the catastrophic deaths that would result from a conventional attack on nuclear facilities and the long-term increase in cancer deaths from the radiation release.

Should the attack be made with nuclear weapons--as some of Bush's criminally insane neoconservative advisers advocate--the populations of many countries would suffer for generations from radioactive particles in air, water, and food chains. Deaths would number in the many millions.

snip>

The US is totally dependent upon foreigners to finance its budget and trade deficits. By financing these deficits, foreign governments are complicit in the Bush Regime's military aggressions and war crimes. The Bush Regime's two largest lenders are China and Japan. It is ironic that Japan, the only nation to experience nuclear attack by the US, is banker to the Bush Regime as it prepares a possible nuclear attack on Iran.

If the rest of the world would simply stop purchasing US Treasuries, and instead dump their surplus dollars into the foreign exchange market, the Bush Regime would be overwhelmed with economic crisis and unable to wage war. The arrogant hubris associated with the "sole superpower" myth would burst like the bubble it is.

The collapse of the dollar would also end the US government's ability to subvert other countries by purchasing their leaders to do America's will.

more...

Uhhh, can't we try sumptin else? :scared:

[54anickel]

75. Imperial sunset? America the all-powerful finds its hands tied by new rivals

http://www.ft.com/cms/s/f2b7d52c-bb06-11db-bbf3-0000779e2340.html

The world that was born with the end of the cold war is dead and buried. Today, America's sole superpower status, which steeled the Bush administration in its determination to go to war in Iraq, is losing relevance. Instead, the US has an ungovernable new world on its hands.

This, at least, is the outlook of some of the world's most seasoned officials and international affairs experts, who believe that the US has lost power and influence and that an uncertain era is about to begin. The age they describe is one dominated neither by Washington's matchless military strength nor the old international -institutions.

"We are going through systemic change," Madeleine Albright, the former US secretary of state, says in an interview. "What has happened in the past six years has been a lessening of respect for American power . . . The world is going to be multipolar," she adds, referring to the growing influence of countries such as China and India and the likelihood that they will have greater roles in deciding the world's affairs.

Already, the US is finding both diplomacy and military action increasingly difficult. Tensions over Iran and North Korea's nuclear programmes, the crisis in Darfur, Kosovo and climate change all cry out for urgent attention. But none can be solved by a single power or even a select group of allies - and progress has been haltingly slow at the United Nations. Even more worryingly for Washington, the Bush administration is finding it increasingly difficult to find allies to help fight its battles - whether in the shrinking "coalition of the willing" in Iraq or the Nato-led mission in Afghanistan.

No longer does the US inhabit the lop-sided world created by the collapse of the Soviet Union in 1991. Instead, the growing diffusion of international power makes this an era in which a profusion of deals has to be done. Yet multilateralism - the use of international treaties, institutions and consultation to achieve diplomatic goals - is harder than it has been for at least half a generation.

more...

[54anickel]

78. Coming soon to an arrogant government very near you: Fiscal Armageddon

http://pmcarpenter.blogs.com/p_m_carpenters_commentary/2007/02/coming_soon_to_.html

The president's nearly $3 trillion, 2008 budget proposal reads like a happy "how-to" manual for what Chalmers Johnson, the East Asian historian and thoughtful author of the eye-opening "Blowback" series, unhappily surveys:

We are on the brink of losing our democracy for the sake of keeping our empire. Once a nation starts down that path, the dynamics that apply to all empires come into play -- isolation, overstretch, the uniting of local and global forces opposed to imperialism, and in the end bankruptcy.

Add to that mixture an unhealthy dose of plutocratic protectionism, and you can see that we're no longer merely on the brink: We have done toppled over. Indeed, Republican apostate Kevin Phillips, in works such as American Theocracy and Wealth and Democracy, forcefully argues that our system of governance is already a de-facto plutocracy -- yesterday's democracy is just that: yesterday.

But take whichever descriptive transformation you prefer, for it makes little difference. Whether we're now a military empire that almost exclusively benefits the domestic rich, or a self-perpetuating playground for the wealthy backed by an overstretching military-industrial complex, the nut of it all is this: The nobler America we once knew is gone -- and possibly forever.

Mr. Bush's 2008 budget is mostly just a banal confirmation of this change. Little surprise remains.

more...

[AnneD]

81. One tidbit I can give you

straight from the halls of Congress (GOP and DEM sources)....Bush's budget is already DOA. Congress knows they'll have their heads handed to them if that passes.:evilgrin:

[54anickel]

91. Is the Big Ship America Sinking? (Nuttin' to worry bout)

http://www.zmag.org/content/showarticle.cfm?SectionID=72&ItemID=12124

Are we in the midst of a momentous turn in world politics? Donald Rumsfeld has been shuffled out of the Pentagon. Daniel Ortega, Washington's nemesis from the Sandinista Revolution of the late 1970s, is back as President of Nicaragua. Hugo Chavez has been triumphantly re-elected, and Bolivia and Ecuador also have new left-populist presidents. U.S.-led neoliberalism is scrambling in Latin America; the U.S. state seems to be in the throes of a full retreat in Iraq; and, in its look ahead to the year 2007, The Economist is warning of the dangers of an "authority deficit" at the level of nation states, international institutions, and the role of "the superpower." The US economy is slowing down; Europe's economy is speeding up; and China, having quadrupled its output over the past 15 years, is becoming more confident and assertive internationally. The fall of the U.S. dollar has been imminent for some time, but now the talk is of its decline turning into a chaotic rout. And suddenly everyone is an environmentalist, with the Bush Administration being the main force against the Kyoto climate change protocols.

What next? With the Bush neo-conservatives on the defensive, will a new common sense emerge? Will the broad left regain its confidence and move to overturning three decades of increased inequality, erosion of social rights, and corrosion of substantive democracy? Will this also extend to challenging corporate power? Will Bush's humiliation in Iraq spill into Canadian debates over the war in Afghanistan and drag Harper down along with his imperial friend? Will the new reality in Iraq force the U.S. and Israel towards some substantive compromise with Palestinians? Will the turmoil within the American empire provide space for the populist experiments taking place in Latin America -- experiments that might inspire a more radical activism in our own countries?

An Unraveling Empire?

It is tempting to identify, in all of the above observations and questions, signs of the unraveling of the American empire. But to argue that the American economy may be on its last legs substitutes wishful thinking for sober analysis. The American economy retains a remarkable capacity to adjust to change (with great costs, of course, to American workers). American military power has limits but it remains the greatest military power the world has ever seen, and its coercive potential and reach should not be underestimated. Shifts are occurring among the hierarchy of capitalist states and regions -- the dramatic rise of Asia and the development of the European Union being the most obvious and important -- but American leadership in the making of global capitalism continues.

There are other reasons for caution. Empires aren't toppled by falling exchange rates. The U.S. dollar fell by 44% relative to the G-10 countries between February 1985 and October 1987. Although there was a recession in the early 1990s, this was followed by the great American 1990s economic boom. Empires do not collapse from particular defeats either. Vietnam defeated the U.S. in the 1970s, but a main priority of Vietnam today is to deepen its participation in American-led globalization. The American economy is clearly not focused on addressing popular needs, but that is not what matters to capital's successful survival. For American capital, the more important development is that US after-tax profits as a share of GDP are at their highest since 1929.

The U.S. is losing manufacturing jobs at an alarming rate: the number of manufacturing jobs in the U.S. is today below where it was fifty years ago, and as a share of total jobs, manufacturing employment is today less than half of what it was then. Yet because of the high productivity of the remaining workers, manufacturing production is not disappearing: the volume of manufactured goods produced in the U.S. has increased six-fold since 1950. Remarkably, given the decline in manufacturing jobs, manufacturing production has maintained its share of the American economy's real (after adjustments for price inflation) output. The U.S. continues to generate half the research and development done amongst the G-7 leading capitalist economies. According to the U.S. National Science Foundation, the American share of the global production of high-tech goods, in spite of all the outsourcing and the imports, actually increased from 25% a quarter of a century ago to 42% in 2003. It is certainly true that high-tech production in China and South Korea has increased much faster, but they started from a low base (about 1% in each country) and their global share has risen to what is still a fraction of the U.S. levels, at only 9% and 4% respectively.

snip>

Where then does this leave us? There may be a downturn, strains, and uncertainties, even a degree of quite serious turmoil. Given that neoliberalism has, to some extent, been discredited as a pure policy framework, this may lead to some turn away from neoliberalism's harshest and most messianic policies. As The Economist (November 25, 2006) suggested after the fall 2006 American Congressional elections, rebuilding "America's social contract" may be "a prerequisite for shoring up support for globalization." As well, the Democratic Party most certainly will, in light of the delegitimation of Bush's international policies of unilateralism, be more cautious in its interventions abroad and more sensitive to multilateral incorporation of allies, as has already been evolving with respect to Middle East policies and North Korea. In the absence of sustained social pressures from within the U.S., however, the changes will be limited to a "kinder" (and perhaps more acceptable) capitalist globalization and the more "multilateral" (and perhaps more efficient) imperialism which the Europeans have sought from the U.S.

American capitalism and the American empire continue to have staying power. This is because of the absence of pressure from below. Without effective social resistance, American capital can restructure at the expense of the middle and working classes. Without organized resistance, the "competitiveness" of U.S. firms and the economy becomes the discursive and organizational framework for middle- and working-class discontent....

more...

[54anickel]

61. Today's Pfenning - Jawboning Currencies...

http://www.kitcocasey.com/displayArticle.php?id=1225

snip>

Overnight, the euro has added to yesterday's gains, but we're still in a tight range... But I'm not sweeping the euro mini-rally under the rug here... A rally is a rally, and a wise man once told that it's not a profit until you take it! Yesterday, we had the good German GDP and Investors Confidence numbers... Those have been followed by some strong, hawkish words by European Central Bank (ECB) member Liebscher, who reminded the markets that the ECB is concerned about accelerating inflation.

Those words reminded traders that the ECB will raise rates in March to combat those inflation pressures, and that will be one more notch in the euro's belt with regards to closing the yield gap vs. the dollar. I think the ECB members should do more of this type of jawboning, thus giving the euro strength... Japan has mastered this art of jawboning their currency... Unfortunately, the Japanese jawbone it weaker! UGH!

This jawboning your currency works... And members of the Bank of England (BOE) found that out this morning as they too came out with both guns blazing, aimed at inflation... BOE Gov. King reminded the markets that the BOE members believe that inflation will remain above the bank's target of 2%... I think that the fall in inflation that I reported to you yesterday is temporary, and so does the BOE!

snip>

Tomorrow, we get the Net TIC Flows, which used to be called the Net Foreign Security Purchases... TIC stands for Treasury International Capital... And the Net TIC measures monthly inflows... This is an important # in the data food chain, in that it tells us just how good of a job we are doing at attracting enough foreign investment to cover our Current Account Deficit...

The trend in this data has been downward, and December's forecast doesn't change that downward trend, as it is forecast to hit $70 billion... When I do the math on the back of a cocktail napkin, I show that we need about $75 billion each month in foreign purchases to finance the deficit... Uh-Oh... Looks like the you-know-what is about to hit the fan...

Like I tell my audiences all the time... When you have a lack of funding, there are two things that can correct the situation. 1. raise interest rates very high, to attract more investment. Unfortunately, raising interest rates like that would bring the economy to its knees... Or 2. debase the currency, so that the cost to purchase the securities would be cheaper... Given the choice between the two... The Government will always choose what's behind door # 2! Debase the currency, which is basically to allow it to depreciate, weaken, fall, and all those other ways of describing the same thing that has gone on with the dollar since being bounced from the Bretton Woods Agreement in 1971...

more...

[Ghost Dog]

70. Forex - Dollar falls against euro as Bernanke lowers GDP forecasts

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=6842d94b-5a47-419b-8c16-b3787c821664

LONDON (AFX) - Dovish comments from the Federal Reserve chairman Ben Bernanke and soft US retail sales have put the dollar under renewed selling pressure.
The euro rose to over 1.31 usd and the pound to 1.96 usd as the market adjusted its interest rate expectations for the US off the back of Bernanke's comments that Fed lowered US GDP expectations.

"The dollar has come under a lot of pressure since Bernanke's speech started despite the fact he has not really said anything new," Mitul Kotecha at Calyon said. "The dollar selling is more a reflection of the market having been too hawkish on US rates," he added.

Retail sales figures for the US in January were flat, against analysts' expectations of a 0.3 pct rise. However, upward revisions to December's data mean that spending is still at a high level. Keith Giles at Capital Economics said that the flat data indicates that people are beginning to spend less in favour of saving. "With house prices now falling outright and mortgage equity withdrawal already fading we think that households will be persuaded to save more and spend less," said Giles. "This should result in more modest consumption growth, leading the Fed to cut interest rates later this year."

Kotecha added that the market still had some way to go to price in these expectations of a rate cut. He is forecasting the euro will rise to 1.37 against the dollar by the middle of the year, primarily driven by negative factors for the dollar, rather than positives for the euro. This, he says, is what led the pound to make gains, bringing it up to 1.96 against the dollar, rather than any impact from today's Inflation Report form the Bank of England.

...

Tonight's Japanese GDP data is expected to be strong, although Kotecha said a strong reading is already priced into the yen. Unless the data surprises on the downside, little price movements are expected. Niels From at Dresdner Klienwort echoed this view. "The market is looking for strong figures from Japan and if the data supports that view we'll see further benefits for the yen, but only marginal ones," said From. "The downside risk if the figures disappoint is greater."

/..

[54anickel]

76. Overseas markets prepare for an inflow as China turns on the tap

http://www.ft.com/cms/s/7ed70d6c-bb06-11db-bbf3-0000779e2340.html

Last August, some of the world's most powerful money managers crammed into the meeting rooms of a discreet business hotel on the outskirts of Beijing. Sharp in their suits and polished shoes, the managers were hoping to impress a group of senior Chinese government officials during a one-day "beauty parade".

Three months later, 10 financial groups received the big prize - the right to manage the first overseas investments of the $50bn (£26bn, €39bn) state pension fund. These initial investment mandates are the first trickle in what is expected to be a flood of overseas investments by cash-rich Chinese banks, insurers and pension funds.

snip>

Since the Asian financial crisis of 1997-98, leaders of emerging economies such as China have accepted as an article of faith that unbridled capital flows can lead to speculative attacks, capital flight and currency devaluations akin to those that afflicted Thailand and Indonesia. Many economists recommend that countries should maintain stringent capital controls so long as they lack a sound and stable banking system, flexible interest rates and a flexible exchange rate - a set of tools that China has yet to develop fully.

So why is China starting to open the tap? Beijing hopes to use controlled outflows to slow the growth of its foreign exchange reserves, the world's largest at more than $1,000bn. "This will be one of the biggest policy moves of 2007," says Jonathan Anderson, UBS chief economist for Asia. "We will see a growing number of official announcements and policies that may lead to significant capital outflows."

In recent years, hundreds of billions of dollars have flooded into China's financial system, mostly through trade surpluses and inward investment in sectors such as manufacturing and property. Left unchecked, these inflows would put upward pressure on the renminbi - undermining the competitiveness of exports, the main driver of the country's breakneck economic growth. Given Beijing's policy of allowing only an incremental appreciation of the renminbi, the People's Bank of China, the central bank, has to absorb the bulk of these foreign currency inflows by accumulating reserves.

snip>

Following a recent policy switch, Beijing is to diversify the country's foreign reserves, 70 per cent of which are believed to be held in dollar-denominated assets such as Treasury bonds and mortgage-backed securities. To generate higher returns, the PBoC is quietly handing out investment mandates to international fund managers specialising in equities.

The latest policy change also suggests that China may use a chunk of its reserves to create a powerful state agency akin to Temasek, Singapore's government investment arm. The PBoC is meanwhile expected to step up its ultra-discreet foreign exchange swaps with local banks - transactions that provide banks with dollars to lend or invest, without forcing them to take on foreign exchange risk. Beijing will also continue to promote its "go out" industrial policy by encouraging direct investment abroad, especially in strategic sectors such as oil and gas.

more...

[54anickel]

85. TEXT-Yen not being manipulated - Fed's Bernanke

http://www.reuters.com/article/bondsNews/idUSN1435916420070214

WASHINGTON, Feb 14 (Reuters) - Following is a transcript of Federal Reserve Chairman Ben Bernanke's remarks on the yen on Wednesday in testimony to the Senate Banking Committee.

"The Treasury and the Federal Reserve have expressed a view that exchange rates ought to be determined in free and open markets. As best as we can tell, the yen's value is being determined in a free, open, competitive market. There is no evidence of any intervention going on. The last time the Japanese purchased dollars was in March 2004. The behavior of the yen appears to be consistent with the monetary policy they are conducting, which in turn are closely related to the state of their domestic economy. So we don't see any manipulation or intervention in the value of the yen.

QUESTION: HOW WOULD YOU KNOW?

"Well, we can see it. For example, in the case of China, where there is a very closely managed exchange rate -- it moves very slowly and there is large capital inflows. And in order to maintain the yuan within the range they are trying to achieve, they have to acquire huge amounts of reserves, and they have to sterilize the effects of those reserves on the domestic money supply. And so there is a very clear type of behavior that we can see. Now, it is true that there are many factors that effect the value of a currency. But to my knowledge there are no overt interventions or any such factors effecting the yen at this time."

I'm so glad he cleared that up for us. :eyes: I'd have a follow up question - Would you really tell us if they were? :P

[Ghost Dog]

15. Sony helps boost Tokyo shares

http://www.ft.com/cms/s/8edff118-bbd5-11db-afe4-0000779e2340.html

Japanese stocks continued their strong upward run as investors turned their sights on Sony and other electronics makers and exporters with exposure to the weak yen and the expanding European economy.

With a seven-year high now within striking distance, the Nikkei 225 Average jumped 131.19 points on high trading volumes to end Wednesday trading 0.74 per cent higher at 17,752.64. The broader Topix Index gained 0.54 per cent, or 9.41 points, to hit 1,765.31, reflecting brisk gains for tyre and rubber makers.

...

There was also buying action in the non-ferrous metal sector as M&A-related speculation mounts in Europe and the US. Overnight reports that US aluminium giant Alcoa may be the target of competing bids from BHP Billiton and Rio Tinto filtered through to Tokyo trading floors as an expectation of wider industry consolidation. Sumitomo Metal Mining rose 4.39 per cent to Y1,761 as investors identified the company as a potential takeover target in the future.

/...

[Ghost Dog]

17. HK shares rebound with China Mobile; Chalco surges

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070214:MTFH71326_2007-02-14_08-31-32_HKG233958&type=comktNews&rpc=44

HONG KONG, Feb 14 (Reuters) - Hong Kong stocks rose 0.4 percent on Wednesday, helped by a rally on Wall Street, and as China Mobile (0941.HK: Quote, Profile , Research) led the blue chips and Aluminum Corp. of China Ltd. (Chalco) (2600.HK: Quote, Profile , Research) surged on Alcoa Inc. takeover talk.

The benchmark Hang Seng Index <.HSI> closed up 77.66 points at 20,209.91, recouping less than a quarter of Tuesday's sharp losses.

"Most technical indicators show weak momentum," said Louie Shum, managing director at Sincere Securities Ltd., citing the blue chips' move below their 20-day moving average.

"We could test the 50-day moving average at 19,900. I'm not optimistic."

But others said worries about fund outflows may be misplaced.

"People may be worried about funds leaving, but actually the banking system is overflowing with liquidity," said Howard Gorges, vice chairman at South China Brokerage.

/...

[Ghost Dog]

19. Singapore raises 2007 growth forecast

http://www.ft.com/cms/s/23cd7ab6-bbd1-11db-afe4-0000779e2340.html

Singapore’s trade-driven economy grew faster than expected in the fourth quarter as electronics output picked up in December, prompting the government to raise its 2007 forecast to 4.5-6.5 percent.

Gross domestic product grew an annualised 7.9 percent compared with the third quarter, data showed on Wednesday, faster than the 7.6 percent forecast in a Reuters poll.

“Global economic conditions have improved over the last few months,” the Ministry of Trade and Industry said in a statement, adding that “on the domestic front, forward-looking indicators point towards continued growth in the next few quarters.”

Singapore’s manufacturers, which produce everything from pharmaceuticals and petrochemicals to oil rigs and electronics, have benefited from a four-year run of robust global growth.

Growth for the whole of 2006 reached 7.9 percent, better than the 7.7 percent advance government estimate. Singapore is among Southeast Asia’s best-performing economies, behind only Vietnam, which is expected to produce growth above 8 percent in 2006.

The Singapore dollar nudged higher after the data, paring losses made a day earlier as a result of suspected central bank intervention. Singapore stocks also traded higher.

/...

[Ghost Dog]

23. European shares rise by midday; Daimler eyed

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-02-14T121027Z_01_L14151772_RTRIDST_0_MARKETS-EUROPE-SHARES-UPDATE-2-CORRECTED.XML&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage2

LONDON, Feb 14 (Reuters) - European shares traded higher by midday on Wednesday amid a flurry of corporate results, a likely revamp at DaimlerChrysler (DCXGn.DE: Quote, Profile , Research), and acquisition talk.

DaimlerChrysler, the world's fifth largest carmaker, rose 4.7 percent to its highest since mid-2002 after it confirmed it was planning a restructuring and aimed to review all options with partners for struggling U.S. unit Chrysler.

At 1138 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.16 percent at 1,538.78 points.

...

French oil giant Total (TOTF.PA: Quote, Profile , Research) unveiled record profits and forecast increased oil and gas output, boosting its shares about 2 percent.

...

Britain's FTSE 100 .FTSE was flat, while Germany's DAX <.GDAXI> was up 0.30 percent, and France's CAC 40 <.FCHI> was up 0.24 percent.

The Bank of England signalled that British interest rates will probably need to rise one more time to keep inflation on track to hit its 2 percent target.

/...

[Ghost Dog]

24. Total pumps record profit, promises increased output

http://www.afp.com/english/news/stories/070214102423.wgmkaeqr.html

PARIS (AFP) - French oil group Total has reported a 5.0-percent rise in adjusted net profit on the back of high oil prices last year to 12.585 billion euros (15.8 billion dollars), a record for any French company.

The price of shares in the group showed a gain of 1.42 percent and analysts said the market had taken particular note of unexpectedly strong operating profits which had enabled it to strengthen investment and its cash reserves.

Total recommended returning more than a third of the profits to shareholders, proposing a dividend of 1.87 euros per share, an increase of 15.0 percent from the 2005 figure, and said that it would continue this policy.

Investment last year had been about equivalent to its net profit, and the the investment effort would be increased slightly this year, and production would increase by more than 5.0 percent per year.

The group's access to proved and probable reserves of hydrocarbons, a key measure of the asset value of an oil company, was equivalent to more than 23 years of activity.

But the figures Wednesday also put the company in the political spotlight amid campaigning for a presidential election in April in which strong profits by French multinationals are a subject of some controversy.

In addition, a high-profile court case began this week over pollution caused by an oil tanker which was carrying oil for Total.

The net figure was on an adjusted basis, excluding non-recurrent items. The absolute net result showed a fall of 4.0 percent to 11.800 billion euros in contrast to broad forecasts by analysts that it would rise by 2.27 percent. to 12.551 billion euros.

Sales rose by 12.0 percent to 153.802 billion euros, but the production of hydrocarbons fell by 5.0 percent, mainly owing to interruptions to output arising from threats to the security of installations in the Niger delta in Nigeria.

/...

[Ghost Dog]

25. EU attacks ‘illegal’ Swiss tax rules

http://www.ft.com/cms/s/bf3ce7ea-bba2-11db-afe4-0000779e2340.html

Swiss tax breaks that have enticed multinationals to move their headquarters out of neighbouring European Union countries are illegal state aid and must be scrapped, the European Commission said on Tuesday.

The move is a reflection of the frustration felt in a number of European capitals about the growing number of companies that have shifted their headquarters or distribution centres to Switzerland.

Kraft Foods, for example, announced last month that it would move its European headquarters to Zurich from Vienna and London this year.

Brussels believes the favourable tax rules that lure companies to Switzerland would be prohibited under EU law, especially a measure that allows Swiss cantons to exempt profits generated abroad from regional and local company taxes.

Switzerland is not a member of the union, but it applies the bulk of EU internal market rules. In return, the EU gives Swiss companies privileged access to its vast market of 500m consumers.

...

Relations between the EU and Switzerland – arguably the union’s most conspicuous non-member – have warmed after Swiss referendums in 2005 and 2006 voted convincingly in favour of closer links. But the issue of inward investment – especially corporate relocations – has become extremely sensitive.

/...

[Ghost Dog]

26. FTSE flat after hitting 6-yr high, Wolseley cools

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-02-14T122536Z_01_L14305238_RTRIDST_0_MARKETS-BRITAIN-STOCKS-UPDATE-1.XML

LONDON, Feb 14 (Reuters) - Britain's FTSE 100 .FTSE shares pared gains, trading flat by mid-session on Wednesday as investors took profits after the index hit its highest since December 2000 and as bid talk on Wolseley (WOS.L: Quote, Profile , Research) cooled.

By 1135 GMT, the FTSE 100 was up 1 point, or 0.02 percent at 6,382.8, after reaching 6,404.3 earlier. The UK benchmark index underperformed other major European markets.

"It's just psychologically that 6,400 is a big level. Obviously everyone looks at Bank of England for what they say. The numbers are quite good. I don't think it's a major influence there," said Lawrence Peterman, investment director at Eden Financial.

Sterling rose versus the dollar and the euro, while gilts fell after Bank of England Governor Mervyn King said the outlook for consumer price inflation was highly uncertain due to energy prices.

Mining shares continued their strong run on metal prices as well as consolidation talk in the sector.

BHP Billiton (BLT.L: Quote, Profile , Research) gained 0.5 percent, Xstrata (XTA.L: Quote, Profile , Research) 1.6 percent, Anglo American (AAL.L: Quote, Profile , Research) 2.2 percent and Rio Tinto (RIO.L: Quote, Profile , Research) 1.9 percent.

/...

[Ghost Dog]

63. Europe ahead on robust earnings

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39127.4909722222-889484360&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

On a busy day for corporate earnings, European equity markets moved sharply higher by the close of trade on Wednesday, helped by record results from Commerzbank and expectations that DaimlerChrysler will announce a dramatic restructuring. US stocks also lent support as they rallied on comments from Federal Reserve Chairman Ben Bernanke. ThyssenKrupp topped the leaderboard, rising 6.2 per cent to €38.67 as brokers upgraded their price targets after the steelmaker raised its estimates for full-year pre-tax profits to €2.75 to €2.88bn for the current finacial year to September 30 from €2.5bn previously. Deutsche Bank raised its price target from €41 to €43 and reiterated a “buy” while BHF Bank lifted its target from €42 to €45. The upbeat sentiment boosted rival steelmaker Arcelor Mittal, up 3.7 per cent to €37.60. DaimlerChrysler added 4 per cent at €51.23 amid strong expectations that the carmaker will announce a spin-off or sale of Crysler, its loss-making US business, at its full-year results presentation ater today. Commerzbank rose 0.6 per cent to €32.03 after Germany’s second largest commercial lender reported record net profits for last year and raised its earnings targets for 2007. The FTSE Eurofirst 300 rose 10.75 points, or 0.7 per cent, to 1,547.07 while Germany’s Xetra Dax added 65.84 points, or 1 per cent, to 6,961.18 and France’s CAC 40 gained 43.15 points, or 0.8 per cent, at 5,725.84.

[Ghost Dog]

65. FTSE 100 breaches 6,400 level

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39127.49375-889484607&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

The FTSE 100 broke through the 6,400 barrier on Wednesday for the first time in more than six years. The blue-chip index rose 39.4 points, or 0.6 per cent, to 6,421.2 - its highest level since late 2000 - amid reports of a possible private equity bid for Wolseley, and with support from US stocks which rallied following comments from Federal Reserve Chairman Ben Bernanke. Wolseley touched a high of 1424p following a report in the free CityAM newspaper that Cinven was preparing a £10bn bid, before closing 7.2 per cent higher at 1407p. Mining stocks continued to benefit from higher metals prices as the price of tin touched an all-time high. Copper surged 3 per cent in the previous session. Rio Tinto rose 2.4 per cent to 2821p, Vedanta Resources gained 5.4 per cent to 1280p, Anglo American added 2.9 per cent to 2567p and Antofagasta firmed 2.4 per cent to 488.5p. By the close of trade, the FTSE 250 was up 65.6 points, 0.6 per cent, at 11,541.3.

[Ghost Dog]

66. Sarkozy to push for tax on hedge funds

http://www.ft.com/cms/s/41285bfe-bba3-11db-afe4-0000779e2340.html

Nicolas Sarkozy will push for a European tax on “speculative movements” by financial groups, such as hedge funds, if he wins this year’s French presidential elections.

The centre-right candidate to replace Jacques Chirac said in comments published by Wednesday’s Les Echos, the Financial Times’s sister newspaper, that he aimed to “raise moral standards and improve security in financial capitalism”.

Mr Sarkozy spent much of the interview outlining plans to cut taxes, reduce state spending and make France work longer. He also bashed the tax-and-spend proposals from Ségolène Royal, his socialist rival, as “a return to the Jospin years”, referring to the last socialist prime minister.

But his plan to tax financial flows is likely to dismay US and UK financial groups, as well as parts of the French business community, which largely prefers him to Ms Royal.

“We did not create the euro to have capitalism without ethics or morals. I am extremely worried about speculative movements,” he said. “Who can tolerate a hedge fund buying a company with debts, firing 25 per cent of staff and then reimbursing them by selling it in pieces? Not me.

“I want to make France the country that rewards wealth creation, but which also knows how to hit predators.” His comments echo the traditional Gaullist suspicion of capitalism and financial investors, for which Mr Chirac has become well known.

/...

[UpInArms]

18. The Ad-Free Cellphone May Soon Be Extinct

http://www.nytimes.com/2007/02/14/business/media/14adco.html?ex=1329109200&en=ffb16bee60bcf95f&ei=5088&partner=rssnyt&emc=rss

ADVERTISING on your cellphone?

Yes, and soon.

Already, ads are creeping onto cellphones around the globe. At this rate, experts say, it will not be long before the 2.2 billion mobile phone users around the world consider it natural to tune into a 15-second spot before watching a video, sending a message or listening to a downloaded song between phone conversations.

Or so they hope.

“This is the year that advertising breaks out worldwide,” said Laura Marriott, executive director of the Mobile Marketing Association, based in Boulder, Colo., which represents more than 400 advertisers, phone makers, wireless operators and market research companies. “Previously, there were not enough of the right phones and fast networks to support good advertising.”

Ms. Marriott spoke yesterday in Barcelona, Spain, where 60,000 people are gathered this week for the 3GSM World Congress, the cellphone industry’s main event of the year. Several companies at the exposition are promising to meld advertising with the mobile phone in a way that respects people’s privacy while bringing in new revenue to offset sagging growth in voice services for phone carriers.

...more...

[UpInArms]

20. Coke Bottler Plans to Cut 3,500 Jobs

http://www.nytimes.com/2007/02/14/business/14coke.html?ex=1329109200&en=ddf9a0b55aa5c64b&ei=5088&partner=rssnyt&emc=rss

Coca-Cola Enterprises, the largest bottler of Coca-Cola, said yesterday that it planned to cut about 3,500 jobs, or 5 percent of its global work force, after taking a $2.9 billion impairment charge in 2006.

The company said it faced large increases in the cost of goods in North America in 2007, primarily for the aluminum used in cans and for high-fructose corn syrup, which is used as a sweetener in soft drinks.

Soaring demand from the ethanol industry is cutting into United States corn supplies, keeping prices near 10-year highs.

“There has been a fundamental change in the sweetener market driven by corn, ultimately driven by the corn used in ethanol,” the chief financial officer, William W. Douglas III, said in a conference call.

The company also posted a fourth-quarter net loss and said it expected profit to fall this year. Excluding items, its fourth-quarter results topped Wall Street’s expectations.

<snip>

The company said that it was overhauling parts of its corporate, North American and European operations, but that most of the jobs would be cut in North America.

...more...

[UpInArms]

29. US to cancel Liberia's debt

http://news.yahoo.com/s/afp/20070213/bs_afp/worldbankliberiaus

WASHINGTON (AFP) - The United States boosted the fledgling recovery of Liberia by announcing it was erasing the war-ravaged West African nation's bilateral debt.

Speaking at the start of a two-day conference of Liberia's international donors here, Secretary of State Condoleezza Rice noted the United States holds 391 million dollars in outstanding bilateral loans to Liberia.

"We will cancel that debt, all of it," she said.

Liberia labors under 3.7 billion dollars in debt run up by its former warlord leaders. Its new elected president, Ellen Johnson Sirleaf, on an official visit to Washington, appealed to donors Monday to show generosity to her shattered nation.

The debt burden comes to 3,000 percent of Liberia's export earnings, which is "clearly non-sustainable," she said, calling in particular for relief from the
World Bank, International Monetary Fund and African Development Bank.

Diamond-rich Liberia went through a savage 14-year civil war that killed an estimated 270,000 people and devastated its infrastructure until warlord-turned-president Charles Taylor went into exile in 2003.

...more...

Pat Robertson's Gold

Last week's terrorist attacks brought out the worst in televangelists Pat Robertson and Jerry Falwell. Three days after hijacked jetliners slammed into the Pentagon, the World Trade Center and the Pennsylvania countryside, Robertson posted a statement on his Christian Broadcast Network (CBN) Web site announcing that pornography, rampant secularism, the occult, abortion, the absence of prayer in schools and insults of God "at the highest level of our government" had sent the Almighty over the edge. America was attacked, Robertson asserted, "because God Almighty is lifting His protection from us."

<snip>

Which is the subject of today's column, and the basis for this humble question: What, pray tell, does the Good Lord make of Pat Robertson's gold-mining venture in Liberia with Charles Taylor, international pariah and one of the most ruthless, greedy and terror-producing heads of state in all of sub-Saharan Africa?

<snip>

But in May 1999, Robertson, through Freedom Gold Limited, an offshore company registered in the Cayman Islands but based at CBN headquarters in Virginia Beach, signed an agreement with Taylor and key cabinet members allowing the for-profit Freedom Gold to explore and receive mining rights in southeastern Liberia, where gold is believed to be in the ground.

It's a great deal for Liberia, which is now an economic basket case thanks to the long civil war and Taylor's corruption. It's also good for Freedom Gold, which was formed by Robertson in 1998. Liberia -- and for all practical purposes we're talking Taylor -- gains 10 percent ownership of Freedom Gold.

As The Post's Douglas Farah reported in January, huge amounts of the country's funds have been siphoned off by a small group of Taylor's associates and relatives. Taylor "has his hand in everything and gets a cut of everything," a businessman told The Post. Other Liberians, probably Taylor's gang, are entitled to buy at least 15 percent of Freedom Gold's shares after the exploration period.

...more...

[Demeter]

43. What a Coincidence! The Appearance of Payoff to Robertson Is Just Illusory,

I'm sure.

[UpInArms]

41. UPDATE 1-Accredited Home (lender) loss three times larger than view

http://www.reuters.com/article/bondsNews/idUSN1429643320070214

NEW YORK, Feb 14 (Reuters) - Accredited Home Lenders Holding Co. (LEND.O: Quote, Profile, Research) reported a quarterly loss three times larger than Wall Street expected, hurt by worsening conditions in the market for loans to people with weaker credit histories.

Shares of Accredited fell 14.2 percent in pre-market electronic trading.

The net loss for the San Diego-based subprime mortgage lender totaled $37.8 million, or $1.49 per share, compared with a year-earlier profit of $43.3 million, or $1.96.

Analysts polled by Reuters Estimates on average forecast a loss of 48 cents per share. Chief Executive James Konrath called Accredited's results "dissatisfying."

Subprime lenders are being battered by lower volumes, narrow margins and rising defaults. As home price appreciation slows, many borrowers are finding it more difficult to refinance adjustable-rate loans as rates reset higher.

Accredited said on Wednesday it set aside $42 million more reserves at year-end than in September because delinquencies are rising, and investors are forcing it to buy back more soured loans.

...more...

[54anickel]

74. It's their default position

http://www.chicagotribune.com/business/la-fi-foreclose13feb13,0,4041447.story?coll=chi-business-hed

HERE'S what Dave Hennigan knows about the four-bedroom house tucked away on a tranquil Corona street: The owner is a woman, and she's $8,155 behind on her mortgage payments.

Maybe she had a messy divorce or expensive illness. Maybe she has been spending too much and saving too little. Hennigan, a 45-year-old Riverside County real estate agent, doesn't plan to ask.

As he navigates the suburban streets, map in hand, he rehearses his pitch. "Your name came up on a list of people who might be interested in selling their house."

That sounds neutral, even sympathetic. If it works, he'll have his first distressed seller.

There's a lot of speculation about where the housing market is headed. Some analysts contend the shakeout is already over. Others maintain it hasn't even begun.

Hennigan and the company he works for, Home Center Realty, don't have the luxury of waiting to see how the story will play out. They need to make a living now, and they're betting that things are going to get worse. Maybe much worse.

During the four-year boom that ended last summer, Home Center expanded from 15 agents to 80 in three offices. The roster of agents has since sunk to 52, only about half of whom are active.

"The rest are looking for side jobs at McDonald's," said Home Center President Jason Bosch. "It happened overnight."

more...

[Ghost Dog]

45. Investors should reassess negative stance on commodities - Merrill

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=9afb7a50-4e35-4e29-b316-c2327a24a027

LONDON (AFX) - Investors appear to have "fallen out of love with commodities" although recent more positive views on global growth prospects suggests they would be wise to reassess their stance on the sector, said Merrill Lynch.

In its monthly Survey of Fund Managers, Merrill said a growing number of investors are starting to believe the global economy could remain stronger for longer.
"For the past two years, survey participants have described the global economy as being between its mid-cycle and late-cycle phases. However, investors appear to have begun to recalibrate their positions," said the bank.

It added that with the majority now saying the global economy is back in a mid-cycle phase, they would do well to consider what impact continued global growth will have on commodity prices.

"Portfolio managers would be wise to reassess a bearish stance on the sector, with oil prices set to rise steadily and soft commodities starting to be impacted by the early stages of a bio-fuels-led boom," said Francisco Blanch, head of the bank's commodities research in London.

...

Yesterday, oil prices surged above 59 usd a barrel after the International Energy Agency upped its forecast for global oil demand this year, citing continued stellar demand growth from China. "Its an underlying demand growth story. Chinese growth is phenomenal," said Blanch. He added that while he still believes supply in the first half of the year will rise, boosted by non-OPEC production, he thinks strong underlying demand will keep oil prices on an upward trend.

/...

[54anickel]

50. Baron Rothschild (Hussman)

http://www.hussmanfunds.com/wmc/wmc070212.htm

snip>

Let's play a little game – it's called “Baron Rothschild,” who once said “I made my fortune by selling too early” (a comment also made by Bernard Baruch). It's a lot like various kids' games where you know something bad will happen but you don't know when. These include “Musical Chairs,” “Don't break the ice” (where you take turns hammering out little ice blocks hoping that you won't cause the whole surface to collapse), or “Kerplunk” (where a load of marbles rests on sticks that have to be removed one by one). My impression is that investors are playing this sort of game here.

Suppose that the dealer lays cards down, one after another. Each is an annual market return. At any time, you can call out “Baron Rothschild” and go to a defensive position, or you can gamble and get the entire market return the dealer shows next. The gain cards read, say, 15%, 20%, 25% and 30%. If you're defensive, you lag the market by 10% when the market return is a gain, but you get, say, 5% if the market return is a loss.

There is one -20% loss card. Once it appears, the game ends and everyone counts their dough, compounded.

snip>

The point of this isn't that investors should always take a defensive stance - some market conditions are associated with very strong return/risk profiles that warrant substantial exposure to market fluctuations. The point is that the avoidance of sigificant losses is generally worth accepting even long periods of defensiveness. Because of the mathematics of compounding, large losses have a disproportionate effect on cumulative returns. Remember that historically, most bear markets have not averaged 20%, but approach 30% or more. A 30% loss takes an 80% gain and turns it into a 26% gain. It's difficult to recover from such losses, which is why the recent bull market has not even put the market ahead of Treasury bills since 2000 or even 1998. So again, the point is that the avoidance of significant losses is typically worthwhile even if, like Baron Rothschild, one is defensive "too soon."

With regard to present stock market conditions, the market currently faces rich valuations, unusual bullishness, overbought conditions, rising yield trends, and a market long overdue for such a correction. Given the average return/risk profile those conditions have historically produced, it makes sense to call out "Baron Rothschild" even if we allow for the possibility of a further advance, in this particular instance, before the market inevitably corrects.

more...

[ozymandius]

51. The latest figures and blather from the Wall Street trading club.

10:45
Dow 12,723.91 Up 69.06 (0.55%)
Nasdaq 2,483.63 Up 23.75 (0.97%)
S&P 500 1,453.72 Up 9.46 (0.66%)
10-Yr Bond 4.75% Down 0.064
NYSE Volume 663,129,000
Nasdaq Volume 588,958,000

10:30 am : The indices have spiked higher within the last 30 minutes as the bulls breathe a sigh of relief after getting exactly what they were looking for -- a lack of overly hawkish commentary from the Bernanke.

At the top of the hour, the Fed Chairman said that "there are some indications that inflation pressures are beginning to diminish." Albeit just as quickly covering his tracks by saying "it will consequently be some time before we can be confident that underlying inflation is moderating as anticipated, since the monthly data remain "noisy;" Bernanke followed with, "A waning of the temporary factors that boosted inflation in recent years will probably help foster a continued edging down of core inflation." DJ30 +63.05 NASDAQ +25.50 SP500 +9.54 NASDAQ Dec/Adv/Vol 816/1818/400 mln NYSE Dec/Adv/Vol 799/2055/200 mln

10:00 am : Little changed since the last update as the major averages settle into a holding pattern ahead of Bernanke's upcoming testimony. Meanwhile, the indices remain on the offensive, but gains are modest at best while leadership from the eight sectors trading higher is largely attributed to just Technology and Industrials.

The latter is getting a boost from an analyst upgrade on FedEx (FDX 115.74 +2.20) while Deere & Co (DE 108.25 +5.58) opened at a historic high after handily topping Wall Street expectations. Tech is getting its biggest boost from Semiconductor Equipment, which is today's second best performing S&P industry group (+1.9%) as investors applaud Applied Materials' (AMAT 18.70 +0.51) healthy interim profit growth and upbeat Q2 guidance.DJ30 +14.27 NASDAQ +10.04 SOX +0.6% SP500 +2.91 NASDAQ Dec/Adv/Vol 1142/1336/184 mln NYSE Dec/Adv/Vol 1123/1567/82 mln

[54anickel]

57. Life is good, no? We're gonna be rich. - Dow hits record on Bernanke

Blue-chip average hits trading high after Fed chief tells Congress inflation pressures seem to have waned; techs get a lift.

http://money.cnn.com/2007/02/14/markets/markets_1030/

NEW YORK (CNNMoney.com) -- Stocks rallied early Wednesday - pushing the Dow industrials to a record trading high - after Federal Reserve Chairman Ben Bernanke said inflation pressures appear to have eased.

The Dow Jones industrial average (up 58.33 to 12,713.18, Charts) jumped 0.4 percent, hitting a fresh trading high, around 50 minutes into the session.

The tech-fueled Nasdaq (up 26.24 to 2,486.12, Charts) composite jumped around 1 percent and the S&P 500 (up 9.73 to 1,453.99, Charts) index gained 0.7 percent.

Blue chips led a big rally Tuesday amid takeover talk about Alcoa, a rebound in commodity stocks and an upgrade of GM.

The tone was positive again Wednesday morning as investors digested the start of Bernanke's two-day semi-annual report to Congress on the economy and monetary policy.

In his prepared comments, the Fed chief said that "so far, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing of core inflation."

more...

[54anickel]

55. Bernanke Says Inflation Slowing; Not Ready to Relax (Update3)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAQ1cxunWuLc&refer=home

Feb. 14 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said declining energy and commodity prices are likely to reduce inflation, though it will be a while before the Fed relaxes its guard.

``There are some indications that inflation pressures are beginning to diminish,'' he told the Senate Banking Committee in Washington. ``The monthly data are noisy, however, and it will consequently be some time before we can be confident that underlying inflation is moderating as anticipated.''

Bernanke reiterated the Fed's stance that it's more worried about inflation than a housing-led economic slowdown, making an interest-rate increase more likely than a cut. Policy makers have kept their benchmark rate unchanged at 5.25 percent since ending a two-year run of increases in August and voted unanimously on Jan. 31 to leave it there.

Bonds and stocks rallied and the dollar weakened. The yield on the benchmark 10-year Treasury note dropped 5 basis points to 4.76 percent at 11 a.m. in New York. The Dow Jones Industrial Average climbed 67.38 to 12,722.15.

``I don't think the Fed has any reason to ease monetary policy or tighten,'' said Mark MacQueen, co-founder of Sage Advisory Services in Austin, Texas, which manages $5 billion in assets. ``They've got the economy very much where they want it to be.''

more...

[specimenfred1984]

58. Fed speaks, Fed pumps and, "nothing costs more!"

Corruption and propaganda rule the markets. I read that chimpy's SEC lackey and Paulson wants the derivative markets to regulate themselves -- oh yehhhhh, that'll work.

[ozymandius]

62. A volunteer system is doomed to fail ... even designed to do so.

Hope is not a plan. But a volunteer system is built on hope. Aye, there's the rub. Hope that companies and the SEC would do the "right thing" did not work during the dot-com and Enron days. The "hope" that deregulated energy markets would yield lower bills for the consumer did not pan out either.

Volunteer policing in a capitalist system will not work. Not now. Not in the future.

[54anickel]

60. What Am I, Some Kind of Moron? (Mogambo)

http://news.goldseek.com/RichardDaughty/1171468981.php

snip>

-- Mike Whitney writing at ichblog.eu estimates that the housing market falling is "cutting off the additional $825 billion of cash which was extracted from home-equity just last year." This has GOT to be very, very bad news (VVBN), as not spending $825 billion is (gulp!) not spending 7% of GDP! For crying out loud! We're freaking doomed!


Probably noticing that my face is turning blue and I am frantically clutching my stricken chest at this news, Mr. Whitney apparently thought it was a good time to change the mood. In that regard, he opted for the "performance arts" line of analogy, and immediately demonstrated his vast knowledge of the theatre by remarking about "The Blanche Dubois economy", which refers to a vapid, mindless, clueless, child-like character in a play/movie called "A Streetcar Named Desire", who famously said that she was "dependent on the kindness of strangers."


That's America in a nutshell, Bubba! We're dependent on strangers, who have no reason to love us, loaning us money so that we can keep shopping and building bigger governments so that more people can be "dependent on the kindness of governments!" Hahaha! That ought to last a long time! Hahaha!

snip>

-- Larry from MoneyandMarkets.com newsletter says he "tore apart the government’s 2006 financial statements", and here’s what he found: "The actual annual federal deficit for the fiscal year ended September 30, 2006 was $4.6 trillion, up from $3.5 trillion a year ago. That’s an astounding $1.1 trillion increase, or a 31.4% jump in the deficit." Yow! This is not to mention that it is more than a third of GDP!

As for the budget (a cash-accounting format), he notes that "The actual deficit is nearly nineteen times larger than the reported $248 billion deficit."

And lastly, but certainly not least, the accrual-system of accounting shows that "Total federal obligations at year-end were $54.6 trillion, up from $50 trillion in 2005 ... $46.4 trillion in 2004 ... and $32.7 trillion in 2002."

Did I say "We're freaking doomed!" in the last ten minutes? If not, insert said comment here. Maybe with an exclamation point or two to add the emphasis it deserves!

more...

[mojavekid]

64. Happy St. Valentines Day SMW! - The 5 Fundamental Problems of the US Economy

From Daily Kos:

http://www.dailykos.com/storyonly/2007/2/13/75459/5050

I've been bearish on the economy for the last two years. Every 4-6 months, I revisit my bearishness to see if it is still warranted. It is. Underlying the great and fabulous growth of the "greatest story never told (according the Larry Kudlow) is a mountain of debt at the federal and personal level, stagnating wages a negative national savings rate and a trade deficit that while showing some signs of improvement is still at dangerous levels.

snip..

Debt

When used properly, debt can increase leverage and allow an investor to increase his return. When used poorly, debt is a crutch that hides the basic problems of an economy. Unfortunately, the US is using debt poorly at the federal and household level.

At the federal level we have once again seen an explosion of debt issuance. While the White House is claiming the budget deficit is decreasing, the amount of debt issued for the last 6 years indicates otherwise. According to the Treasury Department, the total debt outstanding on September 30 2001 was $5,807,463,412,200.06. That number was $8,713,570,341,089.42 as of February 12, or an increase of nearly $3 trillion dollars.

charts and more at link...

Have a wonderful day everyone! I lurk a lot, but know that I come every day and appreciate all the wonderful information right here on this one great thread!

-mojavekid

....and someone gave me a Heart! Thank you!:blush:

[54anickel]

69. Thank you Mojavekid, and good to "see" you drop by again!!! Happy

Valentines Day to you and all the Marketeers and Lurkers. :hi:

[mojavekid]

82. Thanks 54anickel!

I wish I had the time and experience to contribute more, I do check in every day, and I can't say it enough how much I have learned here at DU, but with work, Family and a Biggo project that is nearing completion, I have precious little time..

You are so right to be worried, I cannot fathom all the cheerleading going on what with America with "real" negative interest rates...we are gonna get creamed.

I enjoyed this interview on Financial Sense with Marc Faber:

http://www.financialsense.com/transcriptions/2007/0120.html

Have a Great Day!

-mojavekid

[54anickel]

73. Ewwww, love the ones with lots of pictures - like this one....

Interesting when you also consider what rates were doing at the same time....We are sooooo screwed.

[54anickel]

67. Default would send shockwaves round world (Ecuador)

http://www.ft.com/cms/s/bb7866b2-bb06-11db-bbf3-0000779e2340.html

Published: February 13 2007 02:00 | Last updated: February 13 2007 02:00

If Ecuador fails to pay interest on its debt this week the move could resonate far beyond its borders.

Investment bankers, hedge funds and other investors around the world are watching developments closely - for the potential impact on the broader emerging markets and on a new, but fast-growing, sector of the financial world known as credit derivatives.

There have been very few defaults by sovereign borrowers in recent years, following history's biggest - on about $100bn (€77bn, £51bn) of debt - by Argentina in 2001. Moreover, few governments have defaulted on debt when their ability to pay has not been in much doubt.

snip>

A failure by Ecuador to pay, even temporarily, would serve as a stark reminder to investors of the often un-quantifiable risks associated with emerging markets.

Some analysts doubt that missing this week's interest payment would have more than a limited effect on broader emerging markets sentiment, because Ecuador's debt counts for only a small portion of the market. But investors are on alert in case a default creates ripples elsewhere, particularly since markets are trading at levels that suggest investors do not expect to see defaults occur.

Risk premiums on emerging market debt, which indicate how investors feel about default risk, remain near all-time lows. JPMorgan's EMBI+ index, a market barometer, indicates that emerging market debt gives investors just 168 basis points more return than comparable US Treasury bonds, not far from all-time lows for this index.

more...



Ecuador, Pondering Debt Default, Turns to Chavez for Funding
http://www.bloomberg.com/apps/news?pid=20601086&sid=a2GXAsbmgAcA&refer=latin_america

Feb. 14 (Bloomberg) -- Ecuadorean President Rafael Correa, who is considering defaulting on the country's $10 billion in international debt, is turning to Venezuela's President Hugo Chavez to cover an expected budget deficit this year.

Ecuador is short of funds to make a Feb. 15 interest payment on its benchmark bonds and will take advantage of a 30- day grace period, Deputy Finance Minister Fausto Ortiz said this week. Correa, 43, will send officials to Caracas Feb. 21 to discuss what kind of backing Venezuela can offer, Ortiz said.

``The intention is to go to Caracas to see exactly what the conditions are, to see if it involves buying bonds,'' Ortiz told reporters in Quito. ``We'll have to see exactly what the conditions of the financing are.''

For Chavez, supporting Correa's socialist government would match efforts to bolster other regional allies as he seeks to expand his reach and diminish U.S. influence. In the past year, Venezuela bought bonds from Argentina and jointly issued international bonds, which allowed the country, after a debt default in 2001, to raise funds in U.S. dollars.

``They're not sure what kind of debt restructuring proposal they'll offer. One of the first steps has got to be to cement support from Venezuela,'' said Gianfranco Bertozzi, a Latin America economist at Lehman Brothers Holdings Inc. in New York.

snip>

``If Ecuador defaults, it would be the first time a government does so out of a change in willingness to pay,'' he said. ``Normally, when you go to the negotiation table, there's recognition that there's no money,''

Ecuador's Finance Minister Ricardo Patino last month said the government may pay foreign creditors as little as 40 cents on the dollar to free up funds for heath care and education. Last month, the government doubled a cost of living subsidy for the elderly and disabled at a cost of up to $400 million. Correa has also promised increased housing assistance for the poor.

more...

[54anickel]

71. What's up with the slow growth in workers' pay?

http://www.usatoday.com/money/economy/employment/2007-02-14-wages-usat_x.htm

WASHINGTON — When Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill Wednesday and Thursday he will likely be peppered with questions about why wages are not rising at a more rapid pace.
But he may have to leave lawmakers guessing.

That's because economists aren't sure why wages haven't increased at a faster pace even though the labor market is tight. A tight labor market is often a precursor to a big pickup in pay as employers enter into bidding wars to attract and retain workers.

Adjusted for inflation, average hourly earnings for non-supervisory workers rose 1.7% in December from a year earlier, according to the government. While earnings rose five consecutive months through December and are rising at the fastest rate in years, economists say they aren't sure why the gains haven't been larger given the jobless rate, at 4.5% in December, is near a five-year low.

snip>

Two theories why wages haven't risen faster:

•Globalization. Technological innovation and increased trade have meant jobs that used to only be able to be performed in the USA can now be done abroad. That means that for many professions, a low jobless rate in the USA may not result in higher wages if there is surplus of available workers worldwide.

"A large portion of Americans have a job, but that's not true in the rest of the world," OppenheimerFunds chief economist Jerry Webman says.

•Benefits. Big increases in the cost of benefits, particularly for health care, have given employers less money to increase wages. Benefits account for 30% of total compensation given to workers, according to the Labor Department.

more... :eyes:

[54anickel]

72. No degree? No problem for many good careers

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070214/BIZ03/702140317/1001/BIZ

Just because no bachelor's degree is on your resume doesn't mean you can't find a good career.

Employers, once set on filling every position with a college grad, are changing their tunes as unemployment rates remain low - and as skilled, qualified workers emerge from training schools and associate degree programs.

"The job market has reached the level where companies are starting to dip into segments of the labor pool that sometimes get ignored," says Chief Executive Officer John A. Challenger of Challenger, Gray & Christmas, a global outplacement consulting firm.

snip>

Take a look at a few of the many jobs you can land without a four-year degree.

Paralegals, average salary: $39,130.

Insurance sales agents, salary: $41,720.

Yoga instructors, salary: Varies greatly depending on the place of employment. Average earnings in 2005 were $25,470.

Police officers, salary: Varies widely, but the U.S. average is $46,398, according to www.salary.com.

Interpreters, salary: $33,620.

more...

[AnneD]

99. Or this...

Associate Degree Nurse (school nursing).... 36,050

Bachlor Degree Nurse....36,050

Masters Degree....37,080

Makes me want to go into debt to get that higher salary.:eyes:


Thanks for those sweet Valentine's :loveya:

[54anickel]

100. Damn, now that sucks. Speaking of nursing, the local hospital once

again laid off a bunch of nurses and aids, cutting the ones with senority and higher pay again.

Have a friend who'd been there for quite a while as "housekeeping/nurses aid". She's a really good worker, had nothing to do with performance issues - she got canned in the latest rounds shortly after finally purchasing her first home. A modest condo, not much bigger than a rental apartment. Luckily she got hired right away by the new fancy-schmancy hotel that just went up, but a huge cut in pay. Now she's back to having a room-mate to make ends meet. It's really getting hard to get ahead these days. Seems once you build senority to make a half-decent living they can you, lower the maximum (and starting) pay for your position and you're stuck starting over someplace else that has already done or will be doing the same. Might be steady work, but ya just can't get ahead of the game anymore. :-(

[AnneD]

106. That story....

is repeated every day. At least she found something to keep body and soul togather. As much as I grouse about my job, I have my union to back me up and I have a skill that I can find a job or make one if I need to. I hate that they do this to skilled aides. They make or break my shift.

I pray that I make it to my daughters 18th birthday. If I can do that-I'm on easy street and can coast into retirement (in another country).

[54anickel]

77. China's besieged factories (meet the competition)

Activists aim to expose unscrupulous labor practices to shame companies

http://www.ajc.com/business/content/business/stories/2007/02/14/0214bizchinalabor.html

SHENZHEN, China — Lei Huang could be a poster child for China's laboring classes.

For each 60-hour week he works on an assembly line for Foxconn, a manufacturer of electronics and computer parts in this south China manufacturing hub, he earns $32 and a bunk in a dormitory room with 19 other laborers.

At the factory, managers forbid workers from talking or resting outside of two 10-minute breaks, he said.

Labor rights groups have long documented low pay and strict management in Chinese factories. But as Western firms increasingly move manufacturing to China to cut costs and raise profits, activists are adopting a strategy of publicizing conditions at globally recognized companies including Foxconn, which supplies dozens of international brands, including Apple Inc., from its Shenzhen facilities.

snip>

Last month, China Labor Watch, a New York-based nonprofit watchdog group, issued a report stating that several Chinese suppliers to Wal-Mart routinely fail to pay wages and provide health insurance as required by Chinese law.

The survey of 16 Wal-Mart suppliers found that some pay as little as half the minimum daily wage, provide no health insurance or require mandatory overtime. One company provided only one bathroom for its 2,000 employees, the group said.

The report prompted Wal-Mart to investigate the factories, and auditors found instances of underage workers and violations of overtime laws, though not all of the companies mentioned in the report were "direct Wal-Mart suppliers," said Jonathan Dong, a Wal-Mart spokesman.

more...

[54anickel]

80. 1:41 and are we ever happy today - it must be love!!!!

Dow 12,735.85 81.00 (0.64%)
Nasdaq 2,491.01 31.13 (1.27%)
S&P 500 1,455.25 10.99 (0.76%)
10-yr Bond 4.7440% 0.0700
30-yr Bond 4.8380% 0.0630
NYSE Volume 1,584,409,000
Nasdaq Volume 1,313,938,000

1:30 pm : The major averages are holding onto the bulk of their gains as Bernanke’s Q&A session before the Senate Banking Committee comes to a close. With the worst over, as far as uncertainty about which direction the Fed Chairman would lean, the bulls continue to do a good a job of keeping sellers sidelined, especially on the NYSE. Advancers on the Big Board outpace decliners by a more than 2-to-1 margin while those on the Nasdaq maintain a 9-to-5 edge. DJ30 +75.63 NASDAQ +29.57 SP500 +10.13 NASDAQ Dec/Adv/Vol 1040/1894/1.25 bln NYSE Dec/Adv/Vol 911/2254/834 mln

1:00 pm : Stocks continue to trade near session highs on the heels of Bernanke's upbeat tone on both the economy and cooling inflation pressures. In fact, with the Fed Chairman Bernanke also noting earlier that the broad-based deceleration in the prices of core goods is probably also due to some extent to lower energy prices, further deterioration in oil prices (-2.5%) is giving equities an added boost. DJ30 +77.41 NASDAQ +30.67 SP500 +10.03 NASDAQ Dec/Adv/Vol 1064/1869/1.13 bln NYSE Dec/Adv/Vol 977/2155/750 mln

12:30 pm : No real change in the proceedings as the afternoon session gets underway. Buyers remain in complete control of the action as the bulk of industry leadership remains positive. The Energy sector, though, has inched into the red; but the fact that it's not posting a sharp decline in the face of a 2.0% sell-off in oil prices further underscores the market's enthusiasm to own equities today.

Crude for March delivery is back below $58/bbl after the Energy Dept. earlier showed that weekly inventories remain adequate to meet demand. Forecasts calling for a deep-freeze reprieve in the Northeast are also prompting commodity traders to take some profits after crude eclipsed $60/bbl just a few days ago. DJ30 +70.42 NASDAQ +27.88 SP500 +9.44 XOI +0.2% NASDAQ Dec/Adv/Vol 1050/1850/1.04 bln NYSE Dec/Adv/Vol 921/2207/676 mln

12:00 pm : Stocks, and bonds, continue to rally midday around prepared remarks from Fed Chairman Bernanke that were less hawkish than many feared.

With the bulk (nearly 80%) of the S&P 500 having already reported quarterly results, and the focus shifting from earnings to the general economic outlook, all eyes today have been on Bernanke's semi-annual testimony before the Senate Banking Committee. And, at 10:00 ET, the bulls got exactly what they were looking for as the Fed Chairman noted that "inflation pressures are beginning to diminish" and expects policy to remain on hold as price pressures are tested over time.

Bernanke didn't call for any policy easing, as he just as quickly covered his tracks by saying "it will consequently be some time before we can be confident that underlying inflation is moderating as anticipated, since the monthly data remain "noisy." Be that as it may, Bernanke continuing with, "A waning of the temporary factors that boosted inflation in recent years will probably help foster a continued edging down of core inflation," lessened the likelihood for a continued push higher on policy rates.

Such a steady policy outlook, which is consistent with Briefing.com's assessment, has renewed optimism about the market's growth prospects and fueled a rally in equities that has all 10 sectors trading higher and the Dow at record levels. BTK +0.9% DJ30 +75.11 DJTA +1.2% DJUA +0.5% NASDAQ +28.66 NQ100 +1.6% R2K +0.5% SOX +0.7% SP400 +0.6% SP500 +9.84 XOI +0.5% NASDAQ Dec/Adv/Vol 959/1901/920 mln NYSE Dec/Adv/Vol 821/2266/580 mln

[DoBotherMe]

83. Ozy! That Cartoon!

LOL! :rofl:

[Ghost Dog]

84. (Know the enemy): Taser shares get lift after lawsuits against it dismissed

http://www.marketwatch.com/news/story/taser-shares-get-lift-after/story.aspx?guid=%7B3C4BE0CC%2DCE6D%2D45C2%2D8502%2D2163BBCD50B0%7D

NEW YORK (MarketWatch) -- Shares of Taser International (TASR) advanced 5.3% to $8.14 on Wednesday after the Scottsdale, Ariz., stun gun maker said two wrongful death lawsuits against it were dismissed. The company said the dismissals, which occurred in courts in Mississippi and Ohio, bring the number of such lawsuits filed against and subsequently dismissed to 33. It noted that it hasn't lost any product liability lawsuit. "These dismissals are the result of the insurmountable burden plaintiffs have in proving there was any defect in the Taser device or that the Taser device was a proximate cause of these unfortunate deaths," said Douglas Klint, the company's general counsel. "We are adamant in not settling these wrongful death lawsuits and we will continue our aggressive defense of all litigation filed against Taser International." Volume of 1.25 million shares was above the issue's 10-day average of 728,500.

/.

[citizen snips]

86. U.S. stocks rally as Bernanke sees inflation easing

NEW YORK (MarketWatch) -- U.S. stocks rallied Wednesday, sending the Dow Jones Industrial Average to a new record high, as investors cheered soothing words from Federal Reserve Chairman Ben Bernanke on inflation, easing concerns that the Fed would hike interest rates later this year.

The market also welcomed upbeat earnings from Applied Materials Inc. and discussion of a restructuring at DaimlerChrysler Corp.

"Bernanke spoke of inflation moderating, said that unemployment won't be a problem and that there are tentative signs of housing stabilizing," said Art Hogan, chief market strategist at Jefferies & Co. "What's not to like?"

The Dow Jones Industrial Average (DJI:^DJI - News) gained 89 points to 12,744, just off a new intraday record high of 12,747. The Dow added more than 60 points after the Fed released Bernanke's prepared remarks to

more...
http://biz.yahoo.com/cbsm-top/070214/b8678e4d46ef046dd5b1596a4afe4348.html?.v=1

[citizen snips]

87. Coca-Cola Posts 22 Pct Drop in 4Q Profit

ATLANTA (AP) -- The Coca-Cola Co., the world's largest beverage maker, reported Wednesday a 22 percent drop in fourth-quarter profit despite a solid gain in sales.

The results reported by Coca-Cola followed results reported Tuesday by its largest bottler, Coca-Cola Enterprises. CCE said 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.

Analysts said CCE 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. CCE bottles Coca-Cola products and delivers them to market. The Coca-Cola Co. owns a stake in CCE.

Atlanta-based Coca-Cola said it earned $678 million, or 29 cents a share, for the three months ending Dec. 31, compared to a profit of $864 million, or 36 cents a share, for the same period a year ago.

more...
http://biz.yahoo.com/ap/070214/earns_coca_cola.html?.v=10

[citizen snips]

88. Delta Air Lines Posts 4Q Loss of $1.98B

ATLANTA (AP) -- The amount of red ink at bankrupt Delta Air Lines Inc. swelled to more than $18 billion since the start of 2001 as the company reported Wednesday a bigger fourth-quarter loss than a year ago due in large part to restructuring items.

Even so, Chief Financial Officer Ed Bastian said the nation's third-largest carrier is making improvements -- he cited a $58 million operating profit for all of 2006 -- and is on target to emerge from Chapter 11 as early as April as a stand-alone company.

"I think we're pleased with the progress," Bastian said in an interview. "I wouldn't say we're happy considering we still lost money."

The Atlanta-based company said it lost $1.98 billion for the three months ending Dec. 31, compared to a loss of $1.24 billion a year ago.

more...
http://biz.yahoo.com/ap/070214/earns_delta.html?.v=12

[citizen snips]

89. Office Depot 4Q Profit Up 27 Percent

WEST PALM BEACH, Fla. (AP) -- Office Depot Inc., the nation's second-largest office supplies retailer, said Wednesday its fourth-quarter earnings rose 27 percent as the chain cut operating costs and used promotions to drive holiday sales.

Net income jumped to $135 million, or 48 cents per share, from $106.3 million, or 34 cents per share, a year ago. Earnings adjusted to exclude certain items were $151.7 million, or 54 cents per share, versus $117.1 million, or 38 cents per share, in the 2005 quarter.

But analysts, whose estimates typically exclude items, were looking for profit of 52 cents per share, according to Thomson Financial, and the company's shares fell 93 cents, or 2.48 percent, to $36.58 in afternoon trading on the New York Stock Exchange.

"We are pleased with the performance of our business in the fourth quarter," company Chairman and CEO Steve Odland said Wednesday during a conference call with investors. "This overall growth in sales and operating margin expansion was realized despite

more...
http://biz.yahoo.com/ap/070214/earns_office_depot.html?.v=12

[citizen snips]

90. Heating Oil, Crude Fall on Supply Data

NEW YORK (AP) -- Heating oil prices fell Wednesday after a government report showed that inventories last week declined less than expected. Crude prices followed heating oil lower, dropping more than $1 a barrel.

The Department of Energy reported Wednesday that distillate stocks -- which includes heating oil and diesel fuel -- fell by 3 million barrels last week. Analysts surveyed by Dow Jones Newswires had expected supplies to fall by 4.3 million barrels.

Supply levels for distillate stocks remain on the upper end of average for this time of year.

Most of last week's decline came from the drop in heating oil inventories last week rather than diesel fuel, as a cold snap in the Northeast boosted heating demand, but not as much as expected. The Northeast accounts for the majority of total heating oil consumption.

more...
http://biz.yahoo.com/ap/070214/oil_prices.html?.v=12

[citizen snips]

92. Sector Snap: Heavy Equipment Stocks Up

NEW YORK (AP) -- Shares of farm and other heavy equipment companies got a boost Wednesday after Deere & Co. posted a larger-than-expected fiscal first-quarter profit.

Not surprisingly, Deere shares posted the sector's largest gains, rising $10.05, or 9.8 percent, to $112.70 in heavy afternoon trading on the New York Stock Exchange, after reaching $112.39 earlier in the day. The peak easily surpassed the company's previous 52-week high of $105.13

Deere, the world's largest farm equipment maker, also increased its earnings prediction for the year, estimating that 2007 sales will rise slightly. The company had previously predicted flat sales for the year.

The Moline, Ill.-based company, whose first quarter results were nearly a third higher than the Street expected, said it expects worldwide farm equipment sales to increase about 8 percent for the year.

more...
http://biz.yahoo.com/ap/070214/sector_snap_heavy_equipment.html?.v=1

[54anickel]

93. 3:03 and trying for triple digits on the DOW again - feel the love!

Dow 12,755.39 100.54 (0.79%)
Nasdaq 2,490.95 31.07 (1.26%)
S&P 500 1,457.16 12.90 (0.89%)
10-yr Bond 4.7300% 0.0840
30-yr Bond 4.8260% 0.0750
NYSE Volume 2,043,605,000
Nasdaq Volume 1,678,407,000

3:00 pm : The market is showing no signs of slowing heading into the final hour of trading. Further underscoring renewed bullishness has been a decline on the VIX (CBOE Volatility Index), which has slipped below the psychological 10.00 level. The VXN (NASDAQ Volatility Index) is also under modest pressure, hitting new 2007 lows. Known as "investor fear gauges," pullbacks in both indices suggest recent talk of a possible market correction has been put to rest (for now) as investors actively buying call options signal a short-term bottom has been put in place.DJ30 +95.58 NASDAQ +30.71 SP500 +12.25 NASDAQ Dec/Adv/Vol 1150/1878/1.62 bln NYSE Dec/Adv/Vol 957/2258/1.09 bln

2:30 pm : The indices continue to sport broad-based gains as buying remains widespread across most areas. However, not every S&P industry group is partaking in today's rally. Take Aluminum, for instance. Yesterday's best performer, soaring 6.4% on takeover speculation of Alcoa (AA 34.55 -0.45), is today's worst performer (-1.3%) amid growing skepticism surrounding such a blockbuster buyout. Agricultural Products, which ranked No. 2 among the leaders Tuesday (+4.1%), is turning in today's second worst performance.DJ30 +94.38 NASDAQ +33.23 SP500 +12.54 NASDAQ Dec/Adv/Vol 1057/1943/1.50 bln NYSE Dec/Adv/Vol 955/2251/1.0 bln

2:00 pm : Onward and upward remains the driving mantra today as buyers show some resolve within the last 30 minutes. The Nasdaq continues to outpace its blue-chip counterparts to the upside as its 1.3% intraday advance lists the tech-heavy Composite's year-to-date gain to more than 3.0%. The Dow is also at fresh session highs and extending its reach into uncharted territory; 27 of 30 components are trading higher.. It is currently 73 points above its all-time record close and within reach of logging a back-to-back 100-plus point performance. DJ30 +91.65 NASDAQ +34.49 SP500 +12.37 NASDAQ Dec/Adv/Vol 1054/1911/1.34 bln NYSE Dec/Adv/Vol 974/2206/900 mln

[citizen snips]

94. Sector Snap: Airline Stocks Rise

NEW YORK (AP) -- Airline shares rose Wednesday, benefiting from tumbling crude oil prices.

The Amex Airline Index gained 1.3 percent, with all 11 components rising.

The price of a barrel of oil dropped $1.34 to $57.72 on the New York Mercantile Exchange. Jet fuel is one of an airline's top costs, and industry shares generally trade against crude's price movement.

The biggest percentage gainer in the index was regional carrier ExpressJet Holdings Inc., which rose 14 cents, or 2 percent, to $7.68 on the New York Stock Exchange.

Outside the index, US Airways Group Inc. was one of the industry's few decliners. Shares dropped $1.37 to $57.80 on the NYSE, after its largest shareholder sold 6.5 million of 13.5 million shares.

more...
http://biz.yahoo.com/ap/070214/airlines_sector_snap.html?.v=1

[citizen snips]

95. MGM Mirage 4Q Profit More Than Doubles

LAS VEGAS (AP) -- MGM Mirage Inc., the world's second-largest gambling company, on Wednesday said its fourth-quarter profit more than doubled on a fully operational Beau Rivage, profits from condominium sales and Hurricane Katrina insurance recoveries.

Net income jumped to $201.6 million, or 69 cents per share, compared with $97.8 million, or 33 cents per share, during the same period a year ago.

But Morgan Stanley analyst Celeste Brown said after subtracting condo sales and insurance profits, net income came in at 46 cents per share.

Analysts surveyed by Thomson Financial were looking for earnings of 48 cents per share, which excludes condo sale profits, pre-opening, property transaction and other costs and includes a stock option charge.

more...
http://biz.yahoo.com/ap/070214/earns_mgm_mirage.html?.v=4

[citizen snips]

96. Gold Climbs to Highest Since July on Dollar's Drop Against Euro

Feb. 14 (Bloomberg) -- Gold in New York rose to the highest since July as a decline in the value of the dollar boosted the appeal of the precious metal as an alternative investment.

Demand for gold in exchange-traded funds, or ETFs, tracked by the World Gold Council has increased 2.1 percent this year to 18.5 million ounces. The gains accelerated this week as the dollar fell against the euro to the lowest since Jan. 4. Investment in the StreetTracks Gold Trust reached $10 billion yesterday, the highest since the fund began trading in November 2004.

``I'm warming to gold,'' said Ronald Goodis, director of Equidex Brokerage Group Inc. in Closter, New Jersey. ``A weaker dollar will propel gold higher.''

Gold futures for April delivery rose $7.50, or 1.1 percent, to $676 an ounce at 10:36 a.m. on the Comex division of the New York Mercantile Exchange. Prices earlier reached $676.60, the highest since July 17.

Gold, sold in dollars, rose 23 percent last year, while the dollar fell 10 percent against the euro. A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=awjT6PKXGeAA&refer=commodities

[citizen snips]

97. Treasuries Gain the Most Since September on Bernanke Comments

Feb. 14 (Bloomberg) -- Treasuries rose, pushing yields on benchmark 10-year notes down the most since September, after Federal Reserve Chairman Ben S. Bernanke said ``inflation pressures are beginning to diminish.''

Declining energy and commodity prices are likely to reduce price gains, though the central bank isn't close to reducing interest rates, Bernanke said in testimony to the Senate Banking Committee in Washington. Bonds had slumped the past three days on concern he would highlight the risk of rising inflation.

``The rally we're seeing right now is because the market thought he would say a few more hawkish statements than he actually did,'' said James Caron, head of U.S. interest-rate strategy in New York at Morgan Stanley, one of 21 primary dealers that trade directly with the Fed.

The yield on the 10-year note fell almost 9 basis points to 4.73 percent at 2:13 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent security due February 2017 rose 18/32 or $5.63 per $1,000 face amount to 99 2/32. Yields move inversely to prices.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=aleyM_TZBNpc&refer=bond

[citizen snips]

98. Net Stocks See Slight Gains

NEW YORK (AP) -- Yahoo Inc. led Internet stocks mostly higher on Wednesday along with online job site Monster Worldwide Inc., which teamed up with The New York Times Co. to sell help-wanted ads.

Shares of Sunnyvale, Calif.-based Yahoo rose $1.17, or 4 percent, to $30.72 in recent trading on the Nasdaq. The stock has traded between $22.65 and $34.09 in the past year.


Co-branded sites under the Monster-NY Times deal will be launched in March. Monster's brand will appear on 19 of the media company's Web sites, including The New York Times and The Boston Globe, in the latest union between traditional media and online advertising companies.

Shares of New York-based Monster climbed 89 cents to $53.38 on the Nasdaq. Shares of the NY Times were up 69 cents, or 2.7 percent, to $25.85 on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070214/sector_snap_internet.html?.v=1

[citizen snips]

101. Updates, advisories and surprises

(3:03 PM ET) SAN FRANCISCO (MarketWatch)-- Cabinet maker Masco Corp. (NYSE:MAS - News)plans to have reduced its headcount by 8,000 workers, or over 16% of its U.S. workforce, by the end of the first quarter, said CEO Richard Manoogian. He was speaking in a Wednesday conference call with investors to discuss the company's fourth-quarter earnings report, where it reported a loss. Manoogian said severance and other costs from the firings will contribute to lower first-quarter earnings. Masco said earnings may decline 50% or more from earnings of 50 cents a share posted in the year-earlier quarter. Shares in Masco were recently down 23 cents a share to $31.58.

Kreisler Manufacturing quarterly profit surges; shares jump

(10:39 AM ET) SAN FRANCISCO (MarketWatch) -- Kreisler Manufacturing Corp. (NasdaqCM:KRSL - News)shares jumped 26% to $14 in Wednesday morning trade after the Elmwood Park, N.J.-based maker of metal components and assemblies reported fiscal second-quarter net earnings of $607,000, or 33 cents a share, up from $289,794, or 16 cents a share last year. Revenue rose to $6.02 million from $4.43 million

Daktronics shares tumble on fourth-quarter results, outlook

(10:16 AM ET) SAN FRANCISCO (MarketWatch) -- Daktronics Inc. (NasdaqGS: DAKT - News)shares tumbled 23% to $29.36 in Wednesday morning trade after the Brookings, S.D.-based company reported fiscal third-quarter net income of $7.03 million, or 17 cents a share, compared with $4.04 million, or 10 cents a share, in the year-ago period. Revenue rose to $106.7 million from $71.1 million. Analysts were expecting a per-share profit of 16 cents on revenue of $112.6 million. The company expects fourth-quarter earnings in the range of 12 cents to 19 cents a share on revenue of $106 to $118 million.

more...
http://biz.yahoo.com/cbsm/070214/6309c60b16754db4866fda38bcc8792f.html?.v=11

[54anickel]

102. Time to say good-night and thank-you for the Valentines Day hearts and wishes.

:hi: :loveya: :grouphug: DU's the best! :bounce:

[ozymandius]

105. Good night 54anickel and to all.

I hope you enjoyed your V.D. as much as I did. (yuk yuk)

Dow 12,741.86 Up 87.01 (0.69%)
Nasdaq 2,488.38 Up 28.50 (1.16%)
S&P 500 1,455.30 Up 11.04 (0.76%)
10-Yr Bond 4.73% Down 0.084
NYSE Volume 2,699,291,000
Nasdaq Volume 2,273,745,000

4:20 pm : Stocks rallied Wednesday as a lack of overly hawkish commentary from Fed Chairman Bernanke eased the worst of fears about a possible rate hike.

Speaking before the Senate Banking Committee, Bernanke stated that "inflation pressures are beginning to diminish." He also said the Fed remains comfortable with rates at their current levels, easing recent concerns about the prospect of another rate hike and painting the goldilocks scenario the bulls were hoping for. While Bernanke didn't call for any policy easing, after also alluding to further rate hikes if pricing pressures fail to ease as expected, his overall upbeat tone on both the economy and cooling inflation pressures diminished the likelihood for a continued push higher on policy rates.

Such a steady policy outlook, which is consistent with Briefing.com's assessment, renewed optimism about the market's growth prospects and fueled a rally in equities that closed all 10 sectors higher on the day and pushed several indices into uncharted territory. The Dow Jones Industrials, Transportation and Utilities Averages all finished at historic highs.

From a sector standpoint, Industrials turned in the day's best performance. Bernanke noting "the current stance of policy is likely to foster sustainable economic growth" was the initial spark luring investors back to the economically-sensitive sector. Deere & Co (DE 111.91 +9.24) soared 9% to an historic high after handily topping Wall Street expectations and was the sector standout.

Bernanke also attributing part of the "gradual ebbing of core inflation" to declines in oil prices allowed transports to take full advantage of a 1.7% sell-off in crude. CSX Corp (CSX 42.10 +2.73) surged 7% to an all-time high, getting an additional boost after announcing a $2 bln buyback, while an analyst upgrade gave FedEx (FDX 117.58 +4.04) an extra lift.

The Energy sector's resilience in the face of oil's downturn further underscored the market's eagerness to own equities today. Crude for March delivery closed near $58/bbl after the Energy Dept. earlier showed that weekly inventories remain adequate to meet demand.

Turning in the day's second best performance, though, was the even more influential Technology sector. After snapping an eight-day losing streak a day earlier, Microsoft (MSFT 29.40 +0.37) built on yesterday's gains to the tune of a 1.3% advance. Intel (INTC 21.14 +0.24), the only other stock listed on all three major averages, also turned in an impressive performance (+1.2%). Since higher interest rates spark valuation concerns among growth stocks, the Bernanke-induced rally in Treasuries pushing yields lower across the board also helped to restore confidence throughout the struggling tech sector.BTK +0.9% DJ30 +87.01 DJTA +2.1% DJUA +0.4% DOT +1.3% NASDAQ +28.50 NQ100 +1.8% R2K +0.2% SOX +2.1% SP400 +0.7% SP500 +11.04 XOI +0.5% NASDAQ Dec/Adv/Vol 1250/1786/2.12 bln NYSE Dec/Adv/Vol 1116/2161/1.46 bln

[UpInArms]

107. g'night 54anickel and all

thank you all so much for the valentines - your unending generosity of spirit and intellect never fail to give me the strength to carry on.

Thank all of you so very much.

[citizen snips]

103. DJIA Leaders & Laggards: CAT AA HON KO

NEW YORK (AP) -- Shares of Caterpillar Inc. rallied along with the heavy equipment sector to post the biggest gain Wednesday on the Dow Jones Industrial Average.

The index rose 87.01, to 12,741.86.

Caterpillar shares rose $1.43, or 2.2 percent, to end at $66.16 on the New York Stock Exchange, after rival Deere & Co. posted a larger-than-expected fiscal first-quarter profit.

Honeywell International Inc. also ended higher, after the diversified manufacturer was awarded a $13.5 million contract to help manage a natural gas production system and pipeline in the Middle East.

The stock rose $1.03, or 2.2 percent, to finish at $47.54 on the NYSE.

more...
http://biz.yahoo.com/ap/070214/djia_laggards_close.html?.v=1

[citizen snips]

104. Chips Wrap: Applied Materials, Himax Up

NEW YORK (AP) -- Investors were sweet on semiconductor stocks in Wednesday's trading, sending shares of companies including Applied Materials Inc. and Himax Technologies Inc. soaring.

Applied Materials Inc. said on Tuesday its first-quarter profit more than tripled. Shares of Applied Materials, which have traded between $14.39 and $20.90 over the last 52 weeks, rose 70 cents, or 3.9 percent, to close at $18.89 on the Nasdaq.

Elsewhere in the sector, Himax shares spiked for the second consecutive day, after the company on Monday posted a 73 percent increase in fourth-quarter profit after closing bell.

Shares increased 13.7 percent in Tuesday's trading to a closing price of $5.47, and on Wednesday the stock climbed 36 cents, or 6.6 percent, to end at $5.83 on the Nasdaq. The stock has ranged between $4.21 and $9.45 over the past year.

more...
http://biz.yahoo.com/ap/070214/semiconductor_sector_wrap.html?.v=1