Showing posts with label World. Show all posts
Showing posts with label World. Show all posts

Euro, shares fall as euro zone recession deepens

Label:

LONDON (Reuters) - The euro and shares fell on Thursday after data showed the euro zone's two biggest economies shrank even more than expected late last year, throwing a first quarter recovery into doubt.


The German economy contracted 0.6 percent in the final quarter of 2012, marking its worst performance since the global financial crisis was raging in 2009. Exports, normally the motor of its economy, did most of the damage.


Overall the euro zone's 17-country economy shrank 0.6 percent, with France's 0.3 percent fall slightly worse than forecast.


Germany is expected to rebound but the figures suggest the bloc overall could remain in recession in the first quarter of this year, despite a jump in market sentiment this year as fears that the currency bloc could fall apart faded.


The data pushed the euro down more than 0.9 percent to a session low $1.3328 by 5:30 a.m. ET.


"It is kind of disappointing that Germany, which had shown so much resilience, is now showing signs of suffering from the debt crisis," said Anita Paluch, sales trader at Gekko Capital Markets.


Stock markets had managed to turn around initial falls but were back down by mid-morning. The pan-European FTSEurofirst 300 index <.fteu3> was down 0.4 percent at 1162.58. Frankfurt's DAX <.gdaxi> and Milan's <.ftmib> fell 0.9 percent while Paris's CAC-40 <.fchi> and London's FTSE <.ftse> were 0.4 percent lower.


German bonds rose as demand for traditional safe-haven assets returned. Bund futures were 45 ticks higher on the day at 142.51, having extended gains after Italian GDP figures also came in weak.


Italy, which holds parliamentary elections in just over a week, suffered its sixth successive quarterly fall in GDP - this time a sharp 0.9 percent - putting it into a longer recession than it suffered during the crisis of 2008/2009.


YEN STEADIES


Data from the European Central Bank also weighed on confidence as one of its quarterly surveys showed professional forecasters now see no growth in the euro zone this year, having last quarter expected a modest 0.3 percent rise.


The pain is not just in Europe. Japan - under pressure over its aggressive monetary and fiscal policies which are driving down the yen - reported earlier on Thursday that its GDP shrank 0.1 percent in the fourth quarter, leaving it in recession and crushing expectations of a modest return to growth.


The yen steadied after swinging wildly this week following a muddled warning on currencies from the G7 nations on Tuesday. It slipped against the dollar but gained on the euro after the Bank of Japan announced, as expected, that it would keep the pace of asset purchases and interest rates unchanged.


The dollar traded at 93.51 yen, up 0.1 percent and off its recent lows of 92.83 yen but still well below a 33-month high of 94.46 set on Monday. The euro was down 0.8 percent at 124.60 yen.


The yen's recent rapid depreciation, after years of sharp appreciation, has drawn some criticism from overseas, with rhetoric heating up before a Group of 20 nations meeting on Friday and Saturday in Moscow.


"Usually the BOJ doing nothing causes a bit of disappointment, but since there are concerns about the flak Japan might get at the G20 this weekend for the weakening yen, standing pat will actually be a relief to the market," said Masayuki Doshida, senior market analyst at Rakuten Securities.


IRAN TENSIONS


Oil prices rose as fresh tensions over Iran's nuclear program revived global supply concerns and offset the GDP data from the euro zone.


Crude futures prices had dropped after the German and French data but changed direction shortly afterwards when the United Nations nuclear watchdog said it had again failed to clinch a deal in talks with Iran on investigating its nuclear program.


Brent crude was up 28 cents to $118.17 by 5:10 a.m. ET, U.S. crude was up 27 cents at $97.28.


"News that the IAEA (International Atomic Energy Agency) and Iran failed to reach a deal created a rebound in prices after an initial drop following the GDP data that was weaker than expected," Olivier Jakob, an analyst at Petromatrix, said.


Markets in China and Taiwan remain shut for the Lunar New Year holiday but Hong Kong resumed trading on Thursday.


Metals markets were quieter as a result of the thin Asian trading. Copper hit a 4-month high of $8,346 a tonne on February 4, but has since struggled to find momentum with the Shanghai Futures Exchange closed this week.


Gold regained some strength, steadying at $1,642.50 an ounce as recent losses started to draw buying interest.


(Reporting by Marc Jones; Editing by David Stamp)



Read More..

Stock futures edge higher, Deere jumps after outlook

Label:

NEW YORK (Reuters) - Stock index futures edged higher on Wednesday, suggesting the market would continue a recent advance that lifted benchmark indexes to multi-year highs.


While the long-term trend in markets should remain positive, some investors may take profit at current levels, analysts said, with the S&P near its highest since November 2007. Recent daily moves have been small and trading volume light as investors search for fresh impetus to drive stocks higher.


Equities have been strong performers of late, buoyed largely by healthy growth in corporate earnings, with the S&P 500 gaining 6.5 percent so far this year. The Dow is about 1 percent from an all-time intraday high, reached in October 2007.


"This is a market that refuses to go down, and the trend suggests that we'll not only hit a new high on the Dow, but move well beyond it," said Adam Sarhan, chief executive of Sarhan Capital in New York.


Sarhan noted that the S&P 500 was well over its 50-day moving average of 1,460.92, which he said was a sign the market was overbought.


"A light-volume pullback should be expected and embraced at these levels," he said.


Industrial and construction shares will be in focus a day after President Barack Obama's State of the Union address, during which he called for a $50 billion spending plan to create jobs by rebuilding degraded roads and bridges. He also backed higher taxes for the wealthy.


Retail sales data for January is scheduled for release at 8:30 a.m. ET and are seen up 0.1 percent as consumer paychecks shrank following a recent tax increase. Sales rose 0.5 percent in December.


Investors have cheered strength in recent company results, even as economic data, including recent reads on gross domestic product, have indicated some weakness.


Deere & Co jumped 2.1 percent to $95.99 in premarket trading after the farm equipment maker reported results and raised its full-year profit outlook.


S&P 500 futures rose 2.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 19 points and Nasdaq 100 futures rose 7.25 points.


Comcast Corp agreed late Tuesday to buy General Electric Co's remaining 49 percent stake in NBC Universal for $16.7 billion. Comcast jumped 8 percent to $42.10 in premarket trading while Dow component GE was up 3.2 percent to $23.31.


Yahoo Inc Chief Executive Marissa Mayer said Tuesday the company's search partnership with Microsoft Corp was not delivering the market share gains or the revenue boost that it should.


Companies scheduled to report quarterly results on Wednesday include MetLife Inc , Applied Materials and Whole Foods Market .


According to the latest Thomson Reuters data, of 353 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Also in economic news, business inventories are seen rising 0.3 percent in December, a repeat of the November increase. The data is due at 10:00 a.m. ET


Stocks closed modestly higher Tuesday as investors awaited President Barack Obama's State of the Union address.


(Editing by Bernadette Baum)



Read More..

Yen steady, euro dips after G7 urges against FX war

Label:

LONDON (Reuters) - The yen hovered near three-year lows against the dollar and the euro fell on Tuesday after the G7 nations urged countries to refrain from competitive devaluations and a U.S. official backed Japan's new anti-deflation policies.


The Group of Seven industrialized nations published a statement saying it remained committed to "market-determined" exchange rates, reacting to weeks of concern that Japan's monetary easing policy, which has also weakened its currency, could trigger far-reaching currency wars.


"We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates," the group said.


Japan's Finance Minister Taro Aso welcomed the G7 statement, saying it showed the group recognized Japan's new anti-deflation policy was not aimed at affecting foreign exchange markets.


By 5:30 a.m. ET the yen was close to a three-year low of 94.31 to the dollar. The euro was down 0.2 percent versus the dollar and 0.5 percent lower at 125.90 yen after rising over 2 percent on Monday.


Treasury Undersecretary Lael Brainard said on Monday the United States supported Japanese efforts to end deflation, but also noted the G7 has long been committed to exchange rates determined by market forces.


The euro, the main riser among major currencies over the last few months as confidence in the euro zone has rebounded and the yen has slumped, was back at $1.3405 following the G7 statement.


It had risen briefly earlier after ECB Vice President Vitor Constancio said the bank's employment growth and inflation forecasts next month were likely to be close to the December figures.


The comments doused rate cut hopes, only re-kindled last week by the head of the bank, Mario Draghi, who said it was looking to see whether the euro's recent rise risked pushing inflation below its comfort zone.


SPAIN FOCUS


Having started the day down 0.2 percent, European shares were almost level again by 5:30 a.m. ET as London's FTSE 100 <.ftse> and Paris's CAC-40 <.fchi> recovered, though Frankfurt's DAX <.gdaxi> remained down 0.2 percent.


In the bond market, Spanish and Italian bonds inched up as domestic buyers took advantage of a recent sell-off, but the recovery looked fragile given political uncertainty in both countries.


Spain sold 5.6 billion euros ($7.5 billion) of 6- and 12-month Treasury bills, beating the top end of the target amount, but paid a higher yield on the longer-term paper as a political corruption scandal weighed on shaky confidence.


The ECB's Draghi is due to address Spanish lawmakers later on Tuesday to explain and defend the ECB's current monetary policy strategy against a backdrop of heightened concerns about the strong euro.


Draghi is also expected to meet Prime Minister Mariano Rajoy, but the market does not expect them to discuss whether Madrid might need financial aid, which would trigger the ECB's bond purchase scheme.


Financial markets showed a muted reaction, meanwhile, to the news that North Korea has conducted a nuclear test.


The nuclear test monitoring agency said the blast was double the size of its 2009 test. NATO condemned the move, calling it an "irresponsible act" that posed a grave threat to world peace.


"The test was not something that makes your heart pound as much as a pressing situation between Iran and Israel," said Kaname Gokon, research manager at brokerage Okato Shoji, referring to the threat of possible military action to prevent Iran from developing nuclear weapons.


Brent oil dipped to just under $118 a barrel, copper was flat, while spot gold stayed near a one-month low.


(Editing by Will Waterman)



Read More..

Stock futures tick higher in low volume, volatility eyed

Label:

NEW YORK (Reuters) - Stock index futures edged higher on Monday, suggesting equities will extend their multi-year closing highs from Friday, but low volume and the absence of economic indicators on tap could make trading volatile.


Upbeat U.S. and Chinese data last week helped extend the weekly winning streak of the S&P 500 to six weeks. The benchmark is up 6.4 percent so far this year after a steep rally in January that has dwindled as earnings season winds down.


S&P 500 futures rose 3.4 points but were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 37 points, and Nasdaq 100 futures added 7.5 points.


Google shares dipped 0.8 percent in premarket trading after news Executive Chairman Eric Schmidt is selling roughly 42 percent of his stake in the company, a move that could potentially net the former chief executive $2.51 billion.


Celgene Corp shares rose 1.5 percent premarket to $101.60 after U.S. regulators approved its new drug for patients with multiple myeloma whose disease has worsened after being treated with other cancer drugs.


US Airways shares gained 2.9 percent to $15.18 as it nears an $11 billion merger with AMR Corp that would create the world's largest airline.


Three of Dell Inc's largest investors joined Southeastern Asset Management on Friday in objecting to a $24.4 billion buyout of the No. 3 PC maker led by Chief Executive Michael Dell, as opposition grows to the buyout, the largest since the start of the financial crisis. Dell considered many strategic options before opting to go private, the company said in a regulatory filing.


(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama)



Read More..

Stocks end higher for sixth straight week, tech leads

Label:

NEW YORK (Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.


The S&P 500 also posted a sixth straight week of gains for the first time since August.


The technology sector led the day's gains, with the S&P 500 technology index <.splrct> up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.


Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.


AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.


Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.


"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.


Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.


The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.


"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.


The Dow Jones industrial average <.dji> ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index <.spx> was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index <.ixic> was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.


For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.


Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.


Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.


Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.


Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.


Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.


Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.


The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.


"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."


Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.


(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski, Kenneth Barry and Andrew Hay)



Read More..

Stocks end higher for sixth straight week, tech leads

Label:

NEW YORK (Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.


The S&P 500 also posted a sixth straight week of gains for the first time since August.


The technology sector led the day's gains, with the S&P 500 technology index <.splrct> up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.


Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.


AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.


Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.


"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.


Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.


The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.


"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.


The Dow Jones industrial average <.dji> ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index <.spx> was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index <.ixic> was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.


For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.


Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.


Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.


Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.


Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.


Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.


Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.


The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.


"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."


Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.


(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski, Kenneth Barry and Andrew Hay)



Read More..

Euro near two-week low, shares up on rekindled rate cut hopes

Label:

LONDON (Reuters) - European shares rose and the euro hovered near a two-week low on Friday after the European Central Bank rekindled expectations that it could cut interest rates again.


Strong Chinese trade data also helped lift optimism about global growth prospects, boosting oil, copper and Asian shares, while the yen rose sharply after Japan's finance minister said the currency's recent drop had been overdone.


The ECB left rates at a record low 0.75 percent on Thursday but the bank's President Mario Draghi levered the door to a cut back open by saying it would monitor whether the euro's rise over recent months could push inflation below its comfort zone.


European shares were enjoying their best session of an otherwise low-key week as midday approached, on the hopes lower borrowing rates -- or at least the threat of them -- would reverse some of the 8 percent trade-weighted rise in the euro since August.


"The ECB had quite an impact on the euro-dollar and the positive Chinese data we have had has helped shares," said ABN Amro economist Aline Schuiling.


"Draghi signaled quite clearly yesterday that with the rise in the euro, the risks to price stability are to the downside. We expect the dollar to continue to strengthen, but if that reverses then markets would price in a rate cut."


London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were up 0.5, 0.6 and 0.2 percent respectively by 1100 GMT pushing the pan-European FTSEurofirst 300 <.fteu3> up 0.5 percent, though it was still on course for its second consecutive weekly fall.


U.S. stock futures pointed to a steady start on Wall Street.<.n/>


Draghi said the euro's recent surge was a sign of a return of confidence, but cautioned: "We certainly want to see whether the appreciation is sustained and will alter our risk assessment as far as price stability is concerned."


The comments saw the currency tumble to $1.33705, the lowest since January 25, although a modest mid-morning rebound lifted it back to $1.3404. It had earlier also hit a two-week low against sterling and a one-week low versus the yen.


The yen, the other key focus of foreign exchange markets following the push by Japan's government to ease monetary policy, rose sharply after the country's finance minister said the currency's recent drop had been overdone.


The euro fell 1.5 percent against the yen to 123.54 yen with traders reporting selling by Asian funds. The dollar shed 1 percent to hit a session low of 92.17 yen as a U.S.-based investor sold the greenback.


HAPPY CHINESE NEW YEAR


Helping to bolster strengthening global growth hopes, China said its exports grew 25 percent in January from a year ago, the strongest showing since April 2011 and well ahead of market expectations, while imports also beat forecasts, surging 28.8 percent on the year.


It lifted commodities, including copper, which ended a four day losing streak. Brent crude oil edged towards $118 per barrel.


Brent has gained over the last three weeks as positive data suggested the global economy had turned a corner, which augurs well for fuel demand, while supply worries stemming from tensions in the Middle East have also supported prices.


Earlier MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.3 percent and Australian shares rallied 0.7 percent to 34-month highs. Chinese markets are closed next week for the Lunar New Year holiday, while Hong Kong will resume trading on Thursday. Despite Friday's rises, MSCI's world equity index <.miwd00000pus> was on course for a weekly fall of about one percent, which would be its biggest drop since November and the first weekly decline of 2013.


However, the global index is still up four percent for the year to date and is not far from its best levels since mid-2008.


"China's economic conditions are improving and the trade data confirms the continuation of a recovery trend. Not just the trade data but retail, production and investment flows clearly show that the economy bottomed out in the third quarter last year," said Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo.


BANK REPAYMENTS


Money markets rates reversed some of their recent gains following Draghi's insistence that the ECB's policy will remain accommodative.


The central bank also said on Friday that banks will return another 5 billion euros of its crisis loans next week, suggesting the initial flood of repayments has turned into a steady trickle.


In the bond market, benchmark German Bund futures continued to push higher as Draghi's cautious tone on the euro zone's economy underpinned demand for low risk assets.


Nagging concerns about political stability in Spain and Italy were piling pressure on higher-yielding peripheral bonds to the benefit of Bunds, overshadowing an Irish bank debt deal that will cut Dublin's borrowing costs over the next decade.


"On the 10-year Spanish bonds, we could go significantly above 5.50 percent and reach the 5.60 area and it can be quite fast and on the BTP 4.70-75 area could be reached as well," BNP Paribas strategist Patrick Jacq said.


But "On a longer-term view we still expect market friendly outcomes of the political issues and the setbacks offer some opportunities to enter long positions."


Spanish 10-year yields were last at 5.42 percent while equivalent Italian yields were about 1 basis point up at 4.58 percent.


(Additional reporting by Richard Hubbard and Emelia Sithole-Matarise; editing by Philippa Fletcher)



Read More..

Stock futures climb ahead of ECB, claims data

Label:

NEW YORK (Reuters) - Stock index futures advanced on Thursday, indicating the S&P 500 may rise for a third straight session ahead of a European Central Bank rate decision and data on the U.S. labor market.


The central bank is expected to keep rates unchanged, and the market will give more attention to comments from ECB President Mario Draghi, who will give his views on the region's growth prospects and faces tough questions over the euro's sharp rise and his connection to an Italian banking scandal.


"The ECB will come out and talk about how they are going to have buying programs and all that stuff but this is a danger point for U.S. investors because sometimes traders do pay attention to the woes of Europe," said Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh.


Economic data due at 8:30 a.m. (1330 GMT) includes weekly jobless claims and preliminary fourth quarter productivity and unit labor costs. Initial claims are expected at 360,000 compared with 368,000 in the prior week. Estimates call for a 1.3 percent fall in productivity while unit labor costs are expected to rise 3.0 percent.


"The unemployment information, it has been interesting how much it's dropped off, but we could have a slowdown in firing, but that doesn't necessarily mean an uptick in hiring."


Recent data has pointed to a modest improvement in the economy, but one without enough strength to cause the Federal Reserve to back off it's easy monetary policy, helping the benchmark S&P index <.spx> climb 6 percent for the year.


S&P 500 futures rose 2.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 25 points, and Nasdaq 100 futures added 3.25 points.


Visa Inc's quarterly profit beat analysts' estimates for the ninth consecutive quarter as credit, debit and transactions grew at the world's largest payments network.


Green Mountain Coffee Roasters Inc stumbled 7.2 percent to $45.43 in premarket after forecasting sales growth for the current quarter that was slightly lower than analysts expected.


According to Thomson Reuters data through Wednesday morning, of 301 companies in the S&P 500 that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts.


Looking ahead, fourth-quarter earnings for S&P 500 companies are now expected to grow 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Retailers will also be eyed as they report monthly sales results. Costco Wholesale Corp posted a 4 percent rise in comparable sales in January, marginally above analysts' estimates, despite the largest U.S. warehouse operator having one less sales day in the reporting period.


European shares were little changed after sharp falls the previous day, with any recovery capped by mixed earnings and concerns about economic and political developments in the euro zone. <.eu/>


Asian shares and the euro paused from recent gains as investors awaited the European Central Bank's policy meeting later in the day and Draghi's view on euro zone growth prospects.


(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)



Read More..

Stock futures edge higher with earnings in focus

Label:

NEW YORK (Reuters) - Stock index futures rose on Wednesday, adding to the benchmark S&P 500's rally of more than 1 percent a day earlier, buoyed by solid corporate earnings and an optimistic outlook from Disney.


Walt Disney Co beat estimates for quarterly adjusted earnings and said it expected the next few quarters to be better due to a stronger lineup of movies and rising attendance at its theme parks. Shares advanced 3.2 percent to $56.03 in light premarket trading.


With a lack of economic catalysts on Wednesday, investor focus has turned to an earnings season that has been better than anticipated.


According to Thomson Reuters data through Tuesday morning, of the 278 companies in the S&P 500 <.spx> that have reported earnings, 68.7 percent have beat analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


In another positive sign, sixty-six percent of companies have topped revenue forecasts. Fourth-quarter earnings for S&P 500 companies are now expected to rise 4.5 percent, according to the data, above the 1.9 percent forecast at the start of earnings season.


S&P 500 futures rose 1.6 points and were slightly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 42 points, and Nasdaq 100 futures added 0.75 points.


The benchmark S&P index rose 1.04 percent Tuesday, its biggest percentage gain since a 2.5-percent advance on January 2, when legislators sidestepped a "fiscal cliff" of spending cuts and tax hikes that could have hurt a fragile U.S. economic recovery.


Visa , the world's largest credit and debit card network, is expected to report earnings per share of $1.79 for its first quarter, up from $1.49 a year earlier. Smaller rival MasterCard recently reported better-than-expected results but said its revenue growth could slow in the first half of the year due to economic uncertainty.


Zynga Inc jumped 6.9 percent to $2.93 in premarket trading after the online gaming company reported an unexpected fourth-quarter profit, following steep cost cuts and shifting forward deferred revenue.


European stocks rose, extending the previous session's recovery with an upbeat outlook from ArcelorMittal reassuring investors. <.eu/>


Asian shares rose, with Japanese equities climbing to their highest since October 2008 on hopes of central bank monetary policy easing and optimism about the prospects for a global economic recovery.


(Editing by Bernadette Baum)



Read More..

Stock futures indicate rebound from recent sell-off

Label:

NEW YORK (Reuters) - Stock index futures advanced on Tuesday retracing ground lost the prior day, indicating that Wall Street would rebound off its worst daily session since November.


Major averages dropped about 1 percent on Monday, pressured by renewed worries over the euro zone's sovereign debt crisis. While the day's decline pushed the S&P 500 into negative territory for February, equities have been strong performers of late, and the benchmark index is up 4.9 percent for 2013.


Wall Street has advanced on strong fourth-quarter earnings and signs of improved economic growth, suggesting the market's longer-term trend remains higher.


"Markets may have been slightly ahead of themselves, but investors recognize that earnings and data are both more positive than we previously thought, so no one should worry that yesterday was the start of anything bigger," said Oliver Purshe, president of Gary Goldberg Financial Services in Suffern, New York.


Archer Daniels Midland , Walt Disney Co and Kellogg Co are among the companies on tap to report on Tuesday. According to Thomson Reuters data, of the 256 S&P 500 companies that have reported earnings thus far, 68.4 percent have beaten profit expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


Fourth-quarter earnings for S&P 500 companies are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent forecast on October 1.


S&P 500 futures rose 7.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 69 points and Nasdaq 100 futures rose 11.5 points.


At current levels, the S&P is about 5.4 percent away from its all-time intraday high of 1,576.09, reached in October 2011.


Investors will also be looking to the Institute for Supply Management's January non-manufacturing index, due at 10 a.m. Economists forecast a reading of 55.2, versus 55.7 in December.


Last week, the ISM's manufacturing index for January showed the pace of growth in manufacturing picked up to its highest level in nine months.


In company news, McGraw-Hill will be in focus a day after news the U.S. Justice Department plans to sue the company's Standard & Poor's unit over its mortgage bond ratings. The action would mark the first such federal action against a credit rating agency related to the recent financial crisis.


The stock plummeted almost 14 percent in Monday's session, its worst daily losses since the October 1987 market crash.


U.S. shares of BP Plc rose 1.9 percent to $44.49 before the bell after the company reported earnings that beat expectations and said underlying financial momentum would be "strongly evident" by 2014.


Dell Inc may also be volatile as the company moved closer to a nearly $24 billion buyout deal to take the company private. The stock rose 1.1 percent to $13.42 in light premarket trading.


U.S. stocks slid on Monday as worries about Europe caused the market to pull back from recent gains.


(Editing by Theodore d'Afflisio)



Read More..

Out of network? Don’t be out a lot of money

Label:





Stepping outside your health insurance company’s preferred providers list could take a toll on your bank account. Though there are certain circumstances where an insurance company will pay all or a portion of out-of-network costs, policyholders need to tread carefully. You can easily find yourself on the hook for massive bills. Here’s what you need to know.


How health care networks work


Doctors, hospitals and other health care providers “give health insurance companies discounts on care in order to increase their volume by attracting plan members,” explains health care economist Adam C. Powell, president of the consulting firm Payer+Provider Syndicate, in Boston. “When a health plan member goes out of network, the health insurance company is typically stuck paying retail prices rather than wholesale prices.”






And those higher prices can be passed along to the patient.


Robin Gelburd, president of Fair Health Inc., a New York-based nonprofit dedicated to increasing the amount of transparency in health insurance, adds that insurance networks can be complicated. There may be multiple payment tiers or fee structures that can make it difficult for policyholders to understand their costs. Also, hospitals or other health care facilities may be included in an insurance company’s network, but specific physicians, specialists or labs may not be.


“Oftentimes, consumers don’t think about all the elements in the care,” Gelburd says, adding that it’s possible for a mother to deliver a baby in a hospital that’s in-network but receive an epidural from a specialist who’s not, or for someone to undergo a colonoscopy from an in-network gastroenterologist but receive anesthesia from an out-of-network doctor.


Out of network: Costlier in multiple ways


The complexities of health insurance networks mean that it’s crucial for policyholders to understand exactly what facilities and which doctors are included in their network before seeking services. Venture out of network and the results could be costly, says Joe Mondy, spokesman for Cigna HealthCare in Bloomfield, Conn.


If your insurance company covers out-of-network care at all, those services or procedures will probably cost more since they won’t be eligible for your provider’s negotiated rates. And not only will the overall charges be bigger, but policyholders will also be responsible for a larger portion, says Mondy.


“If you go out of network, in most cases, the health plan will continue to cover you but there will be a difference in terms of the deductible,” he explains. “It will be a separate deductible and perhaps a higher deductible.”


And, once policyholders have satisfied the out-of-network deductible, their plan most likely will cover a smaller percentage of medical costs above the deductible mark. While many insurance policies cover 90 percent of all in-network costs beyond a policyholder’s deductible, a plan might pick up just 50 percent of those costs when you seek treatment out of network, Mondy adds.


Out-of-network pricing exceptions


“Sometimes, certain types of out-of-network costs such as emergency care are covered” even by plans that generally don’t pay for out-of-network care, says Powell.


Certain health plans include built-in coverage for out-of-network emergency services. Also, patients who go to an emergency room outside their network are given some protection by the Affordable Care Act, the health care reform law signed by President Barack Obama. It bars insurers from hitting policyholders with higher out-of-pocket costs when they go outside the network in an emergency. This provision currently applies only to health insurance plans created or issued after March 23, 2010.


However, an out-of-network hospital or other provider might bill the patient directly for additional charges, in a practice called “balance billing.”


Another time when health insurance may cover out-of-network services is when you need to see a specialist and an in-network doctor isn’t available in your area, Mondy says. Once again, the Affordable Care Act can come into play because it requires that newer health plans cover a long list of preventive care screenings, including colonoscopies and mammograms, and some of these may be administered by specialists.


If an in-network specialist isn’t available in your area, “you should contact your health care plan,” Mondy says. “Oftentimes, if there’s an opportunity to, the health plan will reach out to local doctors who may be out of network to get an agreement with them to put them in network.”


You can dicker — or dispute


If you feel there’s no way of avoiding charges for out-of-network care, doctors and health care providers outside your plan may be open to negotiating their fees on specific procedures if you do so in advance, says Gelburd. Make sure to get it all in writing.


The best way to avoid unexpected out-of-network costs is to know your policy. That includes understanding what’s included in your plan’s network, how out-of-network costs are calculated, which procedures require prior approval, and what costs count toward your deductible, Gelburd adds.


When you do find yourself with surprise out-of-network or other expenses that you thought would be covered, dispute the charges with your health insurer. If your appeal is rejected and you’re in a plan created after March 23, 2010, health care reform gives you the right to submit your dispute to an independent review organization, which has the power to overrule the health insurance company.


More From Bankrate.com


Yahoo! Finance – Personal Finance





Title Post: Out of network? Don’t be out a lot of money
Url Post: http://www.news.fluser.com/out-of-network-dont-be-out-a-lot-of-money/
Link To Post : Out of network? Don’t be out a lot of money
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Analysis: New miner wants in on the chummy global potash club

Label:

NEW YORK (Reuters) - Potash miner Prospect Global Resources Inc won't open its first mine until at least 2015, but the American upstart is already upsetting the multibillion-dollar fertilizer industry where a few players control a crucial ingredient in the global food chain.


China, with an insatiable appetite for fertilizer to help feed its growing population, has long been dependent on Canpotex, the Canadian sales agency that supplies a third of the world's potash.


But in December, Canpotex reluctantly agreed to a six-month supply contract with China at $400 per tonne, a $70 per tonne discount from its last contract price and a steeper cut than expected.


China got the cheaper price partly because it used as leverage a separate 10-year agreement inked last October with Prospect.


While macroeconomic and local factors - from economic growth to weather and production issues - do influence the contracts, Prospect's arrival is chipping away at Canpotex's near-monopoly. The stakes are high in a business that typically has profit margins of around 50 percent.


"We think Prospect Global is the best potash investment opportunity in North America," said Steven Sugarman of COR Capital, a private equity firm that is the company's fifth-largest shareholder. "We like the geology, we like the location and the team they've put together."


With demand for corn and other commodities booming around the world - and potash prices up roughly 150 percent in the past decade - food and fertilizer are hot commodities. Prices have cooled recently, but are still at decade-highs.


BlackRock Inc , Apollo Global Management LLC, and Ted Waitt, the co-founder of computer company Gateway, have taken note. They invested in Prospect - which went public last year - largely as a bet on a shake-up of the fertilizer industry.


Prospect is also helmed by some big names in the fertilizer industry. James Dietz, a Prospect board member, was Potash Corp's chief operating officer for more than 10 years, and Patrick Avery, Prospect's chief executive, previously ran Intrepid Potash Inc , which has mines in New Mexico.


Prospect finds itself an unwelcome new kid on the block, with rivals quick to cast doubt on its ability to hang tough amid the fertilizer industry's highs and lows.


"I don't take it seriously whatsoever," said Jim Prokopanko, chief executive of much-larger rival Mosaic Co , which owns Canada's Esterhazy, the world's largest potash mine.


"It'll be a small producer if it ever sees the light of day," he said in an interview.


That view is being tested as Canpotex, which is controlled by Mosaic, Potash Corp and Agrium Inc , negotiates a supply deal with India. Most analysts expect that contract price to be lower than its predecessor.


SCRATCHING THE SURFACE


Prospect is the largest of three companies developing a potash reserve in Holbrook, Arizona, an arid, flat scruff of land in the state's northeast corner.


Passport Potash Inc and privately held Hunt Consolidated Inc are exploring other parts of the reserve, though Prospect is farthest along in terms of development and funding.


Despite a BNSF train depot and several large tourist attractions - a meteorite exploded over Holbrook 100 years ago, attracting rock collectors - the town's unemployment rate is 13.5 percent. Mining promises to change that.


Arizona's potash deposit was quietly forgotten after a small geological expedition uncovered it in the 1960s. The deposit started to get more attention in 2008, as potash prices started to climb high enough to justify the more than $1 billion needed to develop a mine.


To exploit the land, Avery and other executives initially drew in BlackRock and other high-profile debt and equity investors. The group bought a publicly listed shell company to allow them to quickly become a listed company in June 2012 without going through the normal process of an initial public offering.


Several stock offerings since the firm became listed have diluted shares and pushed Prospect's stock down 40 percent in the past six months. More capital may be needed, a step that could further dent the share price.


"We are talking to other groups about more equity stakes to help us get started on drilling," Avery said.


Apollo is finalizing a $100 million debt financing deal, and BlackRock is the company's third-largest stockholder, with more than 5 million shares.


Top shareholders, many of whom invested before the firm went public, have said they believe the company is a long-term investment that will radically alter the fertilizer market.


If fully developed, Holbrook's fertilizer deposit would nearly double annual U.S. production of potash, one of the most-important nutrients that farmers apply to boost harvests.


Russia and Canada have the world's largest potash reserves, each with more than 3 billion tonnes compared with 130 million tonnes in the United States. The grade of Holbrook's potash deposit, at 11 percent to 13 percent, is roughly half the industry average.


But Prospect's production costs will be lower than those of its rivals because of milder weather and less digging required to reach the deposits, boosting margins.


Canpotex and Russian rivals operate primarily in colder climates and have potash reserves about 3,700 feet deep. Mosaic had to freeze an underground lake just to reach Saskatchewan's Esterhazy mine.


Prospect's Arizona potash deposit, by contrast, is roughly 1,000 feet deep in a year-round warm climate and closer to key West Coast ports than Canpotex facilities in Canada.


"A lot of these positive issues offset the lower grade reports," said Steven Rauzi of the Arizona Oil & Gas Conservation Commission, which oversees potash drilling in the state.


Prospect expects it will only cost about $112 per tonne to produce potash at its Arizona mine. The industry average is roughly $135 per tonne. That makes profit margins especially high, with market prices for potash above $400 per tonne.


China is taking 25 percent of Prospect's forecast 2 million tonnes of annual potash production, or 500,000 tonnes a year, an amount that will still make China the largest importer of American potash. The rest, if sold abroad, will only further roil Prospect's rivals when it hits the global market as competition intensifies to feed a growing population.


Canpotex will supply 1 million tonnes to China under a six-month supply contract that expires in June. But the fact that China was able to cut part of its dependence on Canadian potash showed that the world's second-largest economy is getting creative to feed its people.


For every $10 per tonne drop in the price of potash, Potash Corp's earnings slip by 7 cents per share, according to Credit Agricole.


That's not lost on Potash Corp analysts and investors, who peppered CEO Bill Doyle about Prospect in an earnings call last fall. Doyle played down the threat.


"If you look at the economics of the business today, there is no return on that investment," Doyle said of Prospect Global. "We don't pay much attention to it."


Prospect CEO Avery, however, points to the world's growing need for food, and adds that he is bullish on his company's potential - if for no other reason than the land on which it sits. "It is amazing," he said, "how well situated our plot of land is."


(Reporting By Ernest Scheyder; Editing by Patricia Kranz and Claudia Parsons)



Read More..

Report: German check bust man is ex-Iran bank head

Label:





BERLIN (AP) — The German newspaper Bild am Sonntag reports that a man caught last month trying to enter Germany with a check worth about $ 70 million was Iran’s former central bank chief.


The weekly reports that customs officials at Duesseldorf airport found the check in Tahmasb Mazaheri’s luggage Jan. 21 upon his arrival from Turkey.






German customs had issued a statement Friday saying a check for 300 million Venezuelan Bolivars issued by the Bank of Venezuela was found on an unnamed 59-year-old man.


Neither customs officials nor Iran’s embassy could be reached for comment late Saturday.


Mazaheri was the governor of the Central Bank of Iran until 2008.


Bild am Sonntag reported in its Sunday edition that German police and customs are investigating possible money laundering.


International News and Information on Yahoo! Finance





Title Post: Report: German check bust man is ex-Iran bank head
Url Post: http://www.news.fluser.com/report-german-check-bust-man-is-ex-iran-bank-head/
Link To Post : Report: German check bust man is ex-Iran bank head
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

"Great Rotation"- A Wall Street fairy tale?

Label:

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



Read More..

Benz Capital Corp. Announces Conditional Acceptance of Qualifying Transaction

Label:





VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 1, 2013) -


NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.






Benz Capital Corp. (“Benz” or the “Company”) (TSX VENTURE:BZ.P), a capital pool company, is pleased to announce that the TSX Venture Exchange (the “Exchange”) has granted conditional acceptance in respect of its proposed qualifying transaction, consisting of the acquisition of an option to acquire up to an undivided 100% interest in and to certain mineral mining leases in the Yukon Territory known collectively as the Eagle Property (the “Qualifying Transaction”), as previously announced by the Company via news release on December 4, 2012. 


The Company has also received an independent technical report dated January 21, 2013 prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“43-101″) and entitled Technical Report on the Eagle Property (the “Technical Report”). The Technical Report recommends in-fill drilling to outline potential “ore shoots” (a program of four drill holes of depths ranging from 100 to 200 metres) and exploration drilling to test the vein structure to the south west of drill hole EE-1 towards drill hole EE-03. In addition, to increase sampling of drill core outside of the obvious vein fault zone to assess potential for gold mineralization not directly related to the silver-lead vein mineralization. The author of the Technical Report is Jean Pautler, P.Geo., a “qualified person” within the meaning of NI 43-101 and is independent of the Company. The Technical Report will be filed with the Exchange and the securities commissions of each of the Provinces of British Columbia and Alberta in conjunction with the filing and mailing of the Company’s information circular seeking shareholder approval for the Qualifying Transaction at the special meeting of shareholders to be held on March 18, 2013. All of the Company’s disclosure documents filed in connection with the Qualifying Transaction will be available under the Company’s profile at www.sedar.com.


Upon receipt of shareholder approval and satisfaction of all regulatory conditions, the Company expects to close the Qualifying Transaction on or about March 26, 2013.


In accordance with Exchange policies, the Company’s common shares are currently halted from trading and will remain so until the documentation required by the Exchange for the proposed Qualifying Transaction can be provided to the Exchange and may remain halted until completion of the proposed Qualifying Transaction. The Qualifying Transaction remains subject to Exchange final acceptance.


About the Company


The Company is designated as a Capital Pool Company by the Exchange. The Company has not commenced commercial operations and has no assets other than cash. The only business of the Company is the identification and evaluation of assets or businesses with a view to completing a “Qualifying Transaction” in accordance with Exchange Policy 2.4 – Capital Pool Companies.


This news release contains statements about the Company’s expectations regarding the completion of the Option Purchase that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include failure to complete the Option Purchase. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.


This news release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any “U.S Person” (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “1933 Act”)) of any equity or other securities of the Company. The securities of the Company have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.


Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.


Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.


Marketwire News Archive – Yahoo! Finance




Read More..

"Great Rotation"- A Wall Street fairy tale?

Label:

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



Read More..

Cub Energy Inc: Krutogorovskoye-7 Well Tests 5.9 MMcf/d

Label:





HOUSTON, TEXAS–(Marketwire – Feb 1, 2013) – Cub Energy Inc. (“Cub” or the “Company“) (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company, announces the discovery of commercial volumes of natural gas in the Krutogorovskoye-7 (“K-7“) exploration well in Ukraine. The K-7 well is operated by KUB-Gas, a partially-owned subsidiary in which Cub has a 30% ownership interest.


The K-7 well commenced drilling in September 2012 and was cased to a total depth (“TD“) of 3,206 metres in early November 2012. Wireline logging of the well indicated up to 5 potential gas zones in the Bashkirian and Serpukhovian sands between depths of approximately 2,390 metres and 2,760 metres. A 10 metre section of the Bashkirian B12 zone, from a depth of 2,395 to 2,398 metres and from 2,400 to 2,407 metres, was selected for testing.






The well was flow tested for a period of 14 hours using the various choke sizes listed in the table below and achieved a maximum rate of 5.914 MMcf/d through a 9 mm choke. Average production through the 9 mm choke was 5.896 MMcf/d at an average flowing pressure of 14,435 kPa.






























   
Choke SizeFlow Rate (MMcf/d)Flowing Pressure (kPa)
5mm2.27417,826
6mm13.35618,331
7mm4.02016,148
8mm4.87715,009
9mm5.89614,435
6mm23.24117,700
1 first flow 
2 second flow 

During the test the well was slugging condensate and analysis of well data indicates a calculated rate of 33 barrels of condensate per MMcf of gas.


The well, which has now been shut-in to observe pressures, is expected to be on production in the third quarter of 2013 after the construction of 1.7 kilometres of new pipeline. 


Notes to Editor: 


Krutogorovskoye is a 1,100 hectare exploration licence granted to KUB-Gas in 2004. It is located near the city of Lugansk, approximately 105 kilometres to the southeast of the KUB-Gas licences at Olgovskoye, North Makeevskoye and Makeevskoye and 12 kilometres northwest of the KUB-Gas licence at Vergunskoye.


About Cub Energy Inc.


Cub Energy Inc. (TSX VENTURE:KUB) is a Ukraine-focused upstream oil and gas company with 110,000 net acres, in nine exploration and production licences, in the two major producing basins within Ukraine. The Company”s strategy is to use western technology and capital, combined with local expertise to create value in its undeveloped land base, building a portfolio of high margin producing oil and gas assets. The Company has offices in Houston, Toronto and Kyiv and trades in Toronto on the TSX Venture Exchange under the stock symbol KUB. 


For further information please contact us or visit our website: www.cubenergyinc.com


Reader Advisory


Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. CUB believes that the expectations reflected in the forward-looking information are reasonable; however there can be no assurance those expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.


Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in the Ukraine and globally; industry conditions, including fluctuations in the prices of natural gas; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.


This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.


Marketwire News Archive – Yahoo! Finance





Title Post: Cub Energy Inc: Krutogorovskoye-7 Well Tests 5.9 MMcf/d
Url Post: http://www.news.fluser.com/cub-energy-inc-krutogorovskoye-7-well-tests-5-9-mmcfd/
Link To Post : Cub Energy Inc: Krutogorovskoye-7 Well Tests 5.9 MMcf/d
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Euro rises, shares gain as Europe's outlook brightens

Label:

LONDON (Reuters) - The euro hit a fresh 14-month high and European stocks gained on Friday after economic data raised hopes that the region's downturn has eased, but moves were limited as investors await a U.S. jobs report.


Euro zone factories had their best month in nearly a year during January although the currency bloc is likely to remain mired in recession for a few more months, the latest reading of Markit's Purchasing Managers' Index (PMI) showed.


"Providing there are no further setbacks to the region's debt crisis, these data add to the expectation that the euro zone is on course to return to growth by mid-2013," said Chris Williamson, chief economist at data compiler Markit.


The euro hit a high of $1.3657 after the data came out, its highest level since November 2011. The common currency also hit a 33-month high against the yen, rising more than 1 percent to 125.96 yen.


The pan-European FTSEurofirst 300 index <.fteu3> extended its recent gains by 0.4 percent to 1,169.14 points, near a 23-month high after solid rally since the start of the year. London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were up between 0.5 and 0.8 percent.


Earlier, China's official PMI for January eased to 50.4, missing market expectations for a rise and underscoring the fragility of the recovery from the economy's weakest year since 1999.


However, a separate private survey showed that growth in China's giant manufacturing sector hit a two-year high in January as domestic demand strengthened, underlining hopes the nation's economic recovery is slowly gaining momentum.


The Chinese data left MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> little changed


EURO STRENGTH


The euro has risen significantly in recent weeks as the outlook for the 17-nation currency bloc has improved, and also as investors respond to the sharply easier monetary policies of the U.S. Federal Reserve and Bank of Japan.


"The perception is that the ECB is being less supportive and is not providing as much liquidity as the other central banks are," said Andrew Milligan, head of Global Strategy at Standard Life Investments.


At the same time liquidity in the European money markets is being affected by quicker-than-expected repayments of crisis loans handed out by the ECB at the height of the bloc's crisis just over a year ago.


Banks have another two years to pay back the money if they want, but have taken the opportunity this week to return over a quarter of the 489 billion euros ($663.77 billion) they took in the first of the ECB's two "LTRO" handouts.


From now on they can pay back as little or as much of the remaining money as they want each week. After the fast start, analysts are awaiting Friday's details of next week's repayments for clues on whether the pace is likely to continue.


Money market rates have already risen by a quarter of a percentage point since the start the year - the equivalent of a standard ECB interest rate increase - and are likely climb by at least the same amount again if the money continues to drain rapidly from the system.


For Europe's struggling countries and the ECB this is not an ideal situation, effectively tightening monetary policy and creating unwanted stress just as economies are showing fragile signs of improvement.


JOBS EYED


Friday's U.S. nonfarm payrolls data due at 8:30 a.m. ET could be a another factor to drive the euro higher, as a strong report would knock the safe-haven dollar.


The dollar was trading at a 3-1/2 month low against a basket of currencies <.dxy> on Friday after falling 0.3 percent to 78.97 points.


Employers are expected to have added 160,000 new jobs to their payrolls in January, a marginal step up from December's 155,000 gain, according to a Reuters survey of economists. The unemployment rate is seen holding steady at 7.8 percent.


The U.S. economy unexpectedly contracted in the fourth quarter, its weakest performance since emerging from recession in 2009, and it grew just 2.2 percent in the whole of 2012.


The U.S. ISM factory survey, a national report on the state of American manufacturers, is also due at 10 a.m. ET.


(Additional reporting by Marc Jones,; editing by Philippa Fletcher)



Read More..

Currents | Q&A: Douglas Coupland on His Furniture Collection

Label:








Title Post: Currents | Q&A: Douglas Coupland on His Furniture Collection
Url Post: http://www.news.fluser.com/currents-qa-douglas-coupland-on-his-furniture-collection/
Link To Post : Currents | Q&A: Douglas Coupland on His Furniture Collection
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment




Read More..

Stock futures edge lower ahead of data, earnings

Label:

NEW YORK (Reuters) - Stock index futures edged lower on Thursday ahead of data on the labor market and a slew of corporate earnings reports.


Facebook Inc shares dropped 6.7 percent to $29.14 in premarket trading. The company doubled its mobile advertising revenue in the fourth quarter but that growth trailed some of Wall Street's most aggressive estimates.


Qualcomm Inc gained 6 percent to $67.35 in premarket trading after the world's leading supplier of chips for cellphones beat analysts' expectations for quarterly profit and revenue and raised its financial targets for 2013.


Investors will look to weekly initial jobless claims data at 8:30 a.m. ET (1330 GMT) for clues on the health of the labor market ahead of the payrolls report on Friday. Economists in a Reuters survey forecast a total of 350,000 new filings compared with 330,000 in the prior week.


Also at 8:30 a.m. (1330 GMT), the Commerce Department will release December personal income and spending data; economists expect a 0.8 percent rise in income and a 0.3 percent increase in spending.


ConocoPhillips reported a drop in quarterly profit as oil and gas prices weakened and output from the third-largest U.S. oil and gas producer remained steady compared with a year ago, though it anticipated a decline in the first quarter.


Later in the session at 9:45 a.m. (1445 GMT), the Institute for Supply Management Chicago releases January index of manufacturing activity. Economists in a Reuters survey forecast a reading of 50.5 compared with 50.0 in December.


S&P 500 futures fell 1.4 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 5 points, and Nasdaq 100 futures lost 9.75 points.


The S&P 500 <.spx> is up 5.3 percent for the month, as legislators in Washington temporarily sidestepped a "fiscal cliff" of automatic tax increases and spending cuts that could have derailed the economic recovery, and amid improving economic data and better-than-expected corporate earnings.


But the benchmark index has stalled recently, hovering near the 1,500 mark over the past four sessions as investors look for more catalysts to justify further gains.


Thomson Reuters data through Wednesday morning shows that of the 192 companies in the S&P 500 that have reported earnings this season, 68.8 percent have exceeded expectations, a higher proportion than over the past four quarters and above the average since 1994.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 3.8 percent. That's above the 1.9 percent forecast from the start of the earnings season, but well below a 9.9 percent fourth-quarter earnings growth forecast on October 1, the data showed.


European shares fell as investors digested mixed earnings reports, with a warning from AstraZeneca knocking its shares while Ericsson surged after fourth-quarter results. <.eu/>


Asian shares fell slightly after rallying to multi-month highs, and more for some Southeast Asian markets, while the U.S. Federal Reserve's pledge to retain its stimulus policy undermined the dollar.


(Editing by Bernadette Baum)



Read More..

Subscribe to: Posts (Atom)