would like to thank the Academy
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Did not see that bank bounce coming, let's see what the rest of the week brings. Still think too much dumb money being dumped into anything and everything, no matter what. How are the eyes?
Good Morning Lottos!
Futures are flat to slighly green at about 0515 EST. PMs a bit red this morning. Foreign markets up. More highs today?
Europe Stocks Rise as SocGen, Commerzbank Results Beat
By Sarah Jones - May 7, 2013
European stocks climbed to a near five-year high as companies from Societe Generale SA (GLE) to HSBC Holdings Plc (HSBA) reported results that topped analysts’ estimates. U.S. index futures were little changed, while Asian shares rose.
Societe Generale, France’s second-largest bank, and HSBC, Europe’s biggest lender, rose more than 2 percent. Carlsberg A/S (CARLB) added 1.8 percent in Copenhagen after posting better-than- expected earnings. Alstom SA (ALO) sank 8.6 percent after the power- equipment maker cut its profit forecast.
The Stoxx Europe 600 Index (SXXP) rose 0.3 percent to 301.87 at 10:22 a.m. in London, as trading resumed in the U.K., Ireland and Greece after yesterday’s public holiday. The gauge has climbed 7.9 percent this year to its highest level since June 2008 as central banks maintained stimulus measures.
“It’s been a mixed bag on the earnings front but surprises are coming through on financials,” said Kevin Lilley, a fund manager at Old Mutual Asset Managers U.K. in London, which oversees about $6.1 billion. “I am overweight financials. There are one or two weak results out there which isn’t surprising as Q1 was expected to see the economy trough in the euro zone.”
Futures on the Standard & Poor’s 500 Index gained 0.1 percent today, while the MSCI Asia Pacific Index rallied 1.3 percent as the Reserve Bank of Australia cut its benchmark interest rate to a record low.
The RBA unexpectedly reduced the overnight cash-rate target by a quarter percentage point to 2.75 percent. Eight of 29 economists predicted the seventh cut in the past 19 months, while money markets had seen about a 50-50 chance.
Five-Year High
Europe’s Stoxx 600 (SXXP) closed little changed near a five-year high yesterday as services and manufacturing output shrank for a 15th month, while European Central Bank President Mario Draghi said policy makers are ready to cut interest rates if needed.
The Bank of England will probably leave its stimulus program on hold this week amid signs the economy has found a firmer footing. A Bloomberg News survey of economists shows policy makers will refrain from expanding quantitative easing beyond 375 billion pounds ($585 billion) on May 9.
Societe Generale (GLE) increased 5.1 percent to 29.98 euros after it said first-quarter profit fell 50 percent to 364 million euros ($476 million), hurt by accounting charges related to its debt. That still beat the 317 million-euro average estimate of 10 analysts surveyed by Bloomberg.
HSBC (HSBA) rose 2.7 percent to 733.3 pence after saying first- quarter pretax profit almost doubled to $8.43 billion, as bad debts declined and it cut costs. That beat the $8.04 billion average estimate of nine analysts surveyed by Bloomberg.
Carlsberg Beats
Carlsberg (CARLB) climbed 1.8 percent to 557.50 Danish kroner. The brewer of Tuborg beer reported a 15 percent rise in earnings before interest and taxes, excluding some one-time items, to 661 million Danish kroner ($116 million) as sales in Asia climbed and profitability improved in eastern Europe. Analysts had expected 624 million kroner, according to the average of 13 estimates compiled by Bloomberg.
Commerzbank AG (CBK) added 1.5 percent to 10.97 euros. Germany’s second-largest lender reported a first-quarter loss of 94 million euros after booking costs associated with firing staff, compared with a profit of 355 million euros a year earlier. That still beat the average loss estimate of 153.7 million euros of seven analysts surveyed by Bloomberg.
Allianz SE (ALV) gained 2.4 percent to 119.30 euros after Europe’s biggest insurer reported a 24 percent increase in first-quarter profit to about 1.7 billion euros after results improved at all of its businesses. Operating profit of 2.8 billion euros also topped analyst estimates.
Hochtief Airports
Hochtief AG (HOT) advanced 4.9 percent to 56 euros. Germany’s largest construction company agreed to sell its airports division to Public Sector Pension Investment Board of Canada for about 1.5 billion euros as it streamlines its business to focus on more profitable units.
Hochtief also today forecast full-year pretax profit of between 600 million and 680 million euros after reporting first- quarter pretax profit of 123 million euros. That beat the average estimate of three analysts in a Bloomberg news survey.
ACS Actividades de Construccion & Servicios SA, which owns a majority stake in the German company, climbed 6.3 percent to 21.13 euros in Madrid.
Alstom (ALO) tumbled 8.6 percent to 29.42 euros. The world’s third-largest power-equipment maker cut its profit forecast after full-year earnings missed analyst estimates amid reduced spending by clients. It predicted its operating margin will stay stable in 2013 and 2014 and then gradually increase over the next two to three years to around 8 percent. The company had initially said the margin would rise to about 8 percent by 2015.
G4S Plc sank 12 percent to 267.8 pence. The security company reported a lower operating margin for the first quarter, citing challenging economic and trading conditions in continental Europe. It expects the margin trend to continue for the full year.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net
World shares near five-year high on growth optimism
Reuters
By Marc Jones
LONDON (Reuters) - World shares hit their highest level in almost five years on Tuesday as last week's strong U.S. jobs report continued to fuel optimism about the health of the global economy.
Japanese stocks jumped in a delayed reaction to the data because Tokyo had been closed for a public holiday on Monday.
The head of the European Central Bank added to the positive mood by saying it was ready to cut rates again if needed.
Australia's central bank also did its bit to help the economy, cutting rates to a record low on Tuesday and signaling it could do more, helping shares.
"I think the markets are going to continue going higher, the S&P hit another record high yesterday, the DAX is getting closer," said Neil Marsh, strategist at Newedge.
"From a very low base, everyone is fairly optimistic that things are going to improve and if they don't, you've got the added backdrop from (ECB President Mario) Draghi that he'll do whatever it takes to push the euro zone economy forwards."
The Nikkei stock average (.N225) soared 3.7 percent and the MSCI global index <.miwd00000pus>, which tracks stocks in 45 countries, rose 0.3 percent, both the highest since June 2008.
European equities also nudged up as trading gathered momentum, bolstered by a crop of better than expected corporate earnings and with the German DAX index (.GDAXI) closing in on its own record high of 8,151,57 set back in 2007.
Monday's comments from Draghi that the ECB would cut rates again if needed, including pushing its key deposit rate into negative territory, kept downward pressure on the euro as it hovered little changed on the day at $1.3075.
The prospect of negative euro zone rates continued to underpin the bloc's bond markets too with the benchmark German Bund a tick lower on the day at 146.15. (GVD/EUR)
The main focus for Asian currency markets was the Reserve Bank of Australia's policy meeting, at which the bank decided to lower its cash rate by 25 basis points to a record low 2.75 percent.
Markets had priced in a 50-50 chance of a rate cut, and the decision sent the Australian dollar down to a two-month low of $1.0810 and helped Australian shares trim earlier losses.
Investors are now waiting for a batch of April data from China, the world's second-largest economy, for more clues on global growth. Chinese trade data will be released on Wednesday, inflation on Thursday and money supply and loan growth expected from Friday.
(Additional Reporting by Toni Vorobyova; editing by Anna Willard)
.
Apple: The Ignored Road Map For Resurgence -> http://stks.co/iUVP - $AAPL
China’s Gold Consumption Jumps 26% in First Quarter Before Rout
By Bloomberg News - May 7, 2013
Gold consumption in China, the world’s largest user after India, jumped 26 percent in the first three months of 2013 from a year ago amid strong bullion sales and rising jewelry demand, an association said.
Total consumption reached 320.54 metric tons in the first quarter, the China Gold Association said today in an e-mailed report. Purchases of gold bars surged 49 percent to 120.39 tons, while jewelry gained 16 percent to 178.59 tons, it said. Gold output in China, the world’s largest producer, gained 11 percent in the same period to 89.91 tons, according to the association.
First-quarter sales preceded gold’s slump into a bear market last month, with prices tumbling 14 percent the two days through April 15, the worst drop in three decades. The slump led to a surge in demand for jewelry, coins and bars from India and the U.S. to China. China’s imports of the metal from Hong Kong surged to a record in March, the Hong Kong government said on its website today.
“This came out better than our expectation because these sales were done before the gold market rout in April when more people rushed to buy gold,” Song Qing, fund manager at Lion Fund Management Co., China’s first asset manager to place money in foreign exchange-traded gold funds.
Bullion of 99.99 percent purity on the Shanghai Gold Exchange dropped 4.3 percent in the first quarter, and was at 294 yuan a gram ($1,486 an ounce) today. The weeklong Lunar New Year holiday, when consumers bought gold jewelry and bars as gifts in the most-important festival, was in February this year. In London, gold for immediate delivery traded 13 percent lower this year at $1,459.29 an ounce.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2@bloomberg.net
To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net
GLD - What an interesting spot it's at. Pretty much right in the middle before the big drop from $150 to $130. Been in that center spot for about 5 trading days now. WHich way will it go? The way it is all playing out, I will lean towards down, as stocks are the new gold, and gold has been getting 'manipulated'
Asian Stocks Advance With Europe Futures on Rate Cuts; Oil Drops
By Jae Hur and Adam Haigh - May 7, 2013
Asian shares climbed with European stock-index (AS51) futures and the Australia dollar weakened to a two- month low as the Reserve Bank of Australia joined the European Central Bank in cutting interest rates to record lows to sustain economic growth. Oil fell as the yen rallied.
The MSCI Asia Pacific Index added 1.2 percent as of 7:15 a.m. in London. The Topix (TPX) Index led regional gains with a 3.1 percent advance as trading resumed after Japanese holidays. Euro Stoxx 50 Index futures rose 0.3 percent, while Standard & Poor’s 500 Index futures slipped 0.1 percent. The yen rose 0.3 percent to 99.08 per dollar, while the so-called Aussie slid as much as 0.7 percent to $1.0178, the lowest since March 4. Crude declined 0.7 percent.
The RBA cut its benchmark rate by a quarter percentage point to 2.75 percent today to bolster an economy that’s been weakened by the strong Aussie dollar. ECB President Mario Draghi said yesterday that further interest-rate cuts are possible after reducing them to an all-time low last week.
“Investors like to be reassured from central banks that we are on the straight and narrow,” said James Lindsay, an Auckland-based fund manager at Tyndall Investment Management Ltd., which oversees about $23 billion. “Until economies really start to fire, I can’t see any pull-back of stimulus.”
The S&P 500 (SPX) gained 0.2 percent yesterday, reaching a record high. Financial shares led gains after data last week that showed American employers added more workers in April than economists had forecast.
The Reserve Bank of Australia “judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy,” Governor Glenn Stevens said.
Online sales tax divides small businesses
By J.D. Harrison - WASHINGTON POST
A legislative proposal to allow states to collect online sales tax has divided policymakers and small-business owners, but that hasn’t slowed its momentum on Capitol Hill.
The Marketplace Fairness Act would give states the authority to tax merchants from anywhere in the country that sell to customers inside their borders, be it through phone orders, catalogs or the Internet. The Senate could take up the measure today, less than three weeks after the latest version of the bill was introduced.
The legislation is intended to level the playing field for brick-and-mortar retailers while delivering additional revenue to state and local governments. It potentially poses major challenges for online merchants, who would be forced to start charging various tax rates for customers who live in any one of the country’s thousands of taxing jurisdictions.
Using a crowdsourced story format, we asked entrepreneurs last month to share their take on the proposal and how it would affect their businesses — and though a few supported the change, most denounced the measure as yet another potential burden on their business.
“This law is a nightmare,” commenter Carrie82 wrote. “I am a small-business owner, and with this bill, I can at best expect about an 80 percent drop in online profits, because I will have to stop selling to states other than my own that have sales tax.”
Many expressed similar concerns, warning that the cost of complying with the new tax mandate will deter small retailers from interstate commerce. Commenter CoachMaria, whose company sells CDs and e-books across the country, said she already stopped selling to several states that tried to collect taxes on her sales.
If Congress approves the change, she intends to stop selling out of state altogether.
“It’s a very costly proposition,” she wrote, noting that the software needed to monitor varying sales tax rates would be too expensive. “No states have the same rate.”
Hoping to ease concerns from the small-business community, the authors of the bill exempted companies with less than $1 million in annual revenue from paying online sales tax. But many have argued the cap is too low to protect small retailers.
“I believe it should be raised to $10 million,” wrote commenter Shirley Tan. “If a business sells $1 million online, it doesn’t mean that they got to keep all the money. They have inventory costs, labor costs, shipping costs. So even though it sounds like, ‘Wow, a business is selling $1 million,’ it sounds like a lot but it really isn’t.”
One Internet giant, eBay, has taken the same stance, sending a letter to users urging them speak out against the bill, or at least urge lawmakers to raise the exemption ceiling.
Taxation without representation?
Other critics include lawmakers in sales-tax-free states and proponents of a smaller government — the latter of whom believe the bill would set a dangerous precedent by forcing business owners to pay taxes in states where they have no presence, and where they therefore have no vote and see no direct benefit from their tax dollars.
MORE - http://www.washingtonpost.com/business/on-small-business/crowdsourced/online-sales-tax-divides-small-businesses/2013/05/03/36b6b3c6-b351-11e2-bbf2-a6f9e9d79e19_story.html
THE 5 QUESTIONS MOST FEARED BY MEN
What makes these questions so difficult is that every single one is guaranteed to explode into a major argument if the man answers incorrectly (ie. tells the truth). Therefore, as a public service, each question is analysed below, along with possible responses.
QUESTION #1: What are you thinking about?
The proper answer to this, of course, is "I'm sorry if I've been pensive, dear. I was just reflecting on what a warm, wonderful, thoughtful, caring, intelligent woman you are, and how lucky I am to have met you". This response obviously bears no resemblance to the true answer, which most likely is one of the following:
A. Football.
B. Golf.
C. How fat you are.
D. How much prettier she is than you
E. How I would spend the insurance money if you died.
QUESTION #2: Do you love me?
The proper response is: "YES!" or, if you feel a more detailed answer is in order "Yes, dear". Inappropriate responses include:
A. Oh yeah, shit loads!
B. Would it make you feel better if I said yes?
C. That depends on what you mean by love.
D. Does it matter?
E. Who, me?
QUESTION #3: Do I look fat?
The correct answer is an emphatic: "Of course not!" Among the incorrect answers are:
A. Compared to what?
B. I wouldn't call you fat, but you're not exactly thin.
C. A little extra weight looks good on you.
D. I've seen fatter.
E. Sorry what did you say? I was just thinking about how I would spend the insurance money if you died.
QUESTION #4: Do you think she's prettier than me?
Once again, the proper response is an emphatic: "Of course not!" Incorrect responses include:
A. Yes, but you have a better personality B. Not prettier, but definitely thinner C. Not as pretty as you when you were her age D. Define pretty E. Sorry what did you say? I was just thinking about how I would spend the insurance money if you died.
QUESTION #5: What would you do if I died?
A definite no-win question. (The real answer, of course, is "Buy a BMW car and a Boat").
Man, I hope CALL has another blow out earnings and kicks it up into the $20s. Really hoping for a nice short squeeze play. I like the slow creep up it has made. My 17.50s looking noce right now, just need it to pop so I can take profit and run.
My genius BAC puts are poof. Did NOT see that settlement coming. Typical. Still, got a few weeks, might as well have hope.
Good morning Stuff. Hope all went well with the eyes yesterday. Missed out on all the fun again, damn internet in the room was just crap, couldn't hold at all, kept dumping me every minute, before a page would load. They are 'fixing' it, and are going to credit us the day. Jerks.
LOL, good morning Long. Agh, didn't think you would see that! I hope Red doesn't find out, she doesn't know about your secret life.
That is probably EZ calling, trying to set up the time you want us all over there with our sexy outfits. Tell your friends NO TOUCHING!! We are professionals.
Getting ready to head out for dinner, and then back on for the open, hope to see ya soon.
BlackBerry $BBRY R10 Rumors Light Up Internet http://stks.co/eT6e
Stocks To Watch For May 6, 2013 http://stks.co/dSuo $COV $SYY $TESO $TSN @Benzinga
U.S. Economic Calendar for the week, May 6 through May 10 http://stks.co/gUG4 via @jackdman $ES_F $SPY" <- Bernanke on Fri! @supastarfedd
Buffett Offers a Sketch of Berkshire's Next Era
By Anupreeta Das | The Wall Street Journal
Warren Buffett dodged a bear and stuck up for his son at a Berkshire Hathaway Inc. meeting that otherwise provided few surprises.
For most shareholders, that was just fine.
It could be that Berkshire shareholders, a generally happy bunch given the meteoric long-term gains in the stock, as well as its 22% jump since January, didn't have new questions. After all, Mr. Buffett himself invited hedge-fund manager Doug Kass, who is bearish on the stock, to "spice things up" at the meeting by asking tough questions.
Although one shareholder wanted to know why Mr. Buffett ate so many hamburgers, the five hours of questions from shareholders, financial analysts and journalists could be grouped into the following categories: the shape, size and value of Berkshire when Mr. Buffett is gone; the hidden identity of Mr. Buffett's successor; whither big deals; the health of subsidiary businesses big and small; the U.S. recovery and Europe's economic distress.
The answers haven't changed much.
However, Mr. Buffett did go further than he has before in sketching out what Berkshire might look like without him.
An analyst asked how a successor could run such a broad and unwieldy operation, especially one with diverse small businesses. Berkshire's major operations include insurance, railroads and manufacturing. Its smaller businesses run the gamut from newspapers to candy.
"My guess is that my successor will modestly organize things in a slightly different way," Mr. Buffett answered. "But it doesn't change anything. The real money is made by the major businesses."
He was quick to add that the Berkshire culture will remain unchanged. He also said that he expects his son Howard Buffett, who will take on the mantle of nonexecutive chairman as part of a succession plan, will essentially be the guardian of that culture.
Mr. Kass provided one of the meeting's more memorable moments, using the forum to pitch an idea to Mr. Buffett rather than asking a question. Knowing the Berkshire CEO's negative view of short selling, Mr. Kass proposed that Mr. Buffett give him $100 million in a managed account to make a wager, in which he would donate gains to charity.
Berkshire Vice Chairman Charlie Munger handled the answer: "No."
Mr. Kass also asked Mr. Buffett: "What gives you confidence that your successor's imprimatur will add as much value to Berkshire as you have?"
Mr. Buffett's answer reflected his belief that Berkshire is a brand that will outlast his name, and that because of its enormous cash hoard and prudent use of money, Berkshire will always be the go-to institution for ready investment dollars.
He said his successor as CEO will have "unusual" capital, especially during "turbulent times when the ability to say yes very quickly with very large sums sets you apart from virtually anyone else in the investing world.
"Berkshire is the 800 number when there's really panic in the market... I think when you come to a day when the Dow has fallen 1,000 points a day for a couple of days and the tide has gone out and you find out who has been swimming naked, those naked swimmers will call Berkshire," he said.
Berkshire invested $5 billion in Goldman Sachs Group Inc. at the height of the financial crisis in 2008 and put $5 billion in Bank of America Corp. in 2011. The aid helped both banks shore up their cash on terms that were lucrative for Berkshire.
Saturday evening, shareholders huddled together in groups around downtown Omaha, parsing Messrs. Buffett and Munger's words.
"What really hit me yesterday was the fact that they have really created a special and unique culture," said Paul Lountzis, whose fund owns Berkshire shares. "No one will be able to sing the song and be the man that [Mr. Buffett] is. But there are plenty of smart and talented people" at Berkshire to do the job, he said.
Mr. Lountzis, who has attended more than 20 Berkshire annual meetings, said that Mr. Buffett also needs to "prepare shareholders" by delegating some questions to his managers at the subsidiary businesses. That, he said, would be the "natural future for Berkshire to make the meeting better."
Other shareholders spent time reflecting on another of Mr. Kass's questions: "How, beyond the accident of birth, is your son qualified to be non-executive chairman?" The younger Mr. Buffett runs a charitable foundation and operates a family farm.
"Many people have wondered about Howard," said one shareholder who runs a small fund in Portland, Ore. "Warren handled it superbly and really spelled out what Howard's role will be as a keeper of the culture."
Anupreeta Das and David Benoit
Write to Anupreeta Das at anupreeta.das@wsj.com and David Benoit at david.benoit@dowjones.com
Gold and Silver staying STRONG so far this PM, looking good.
LOL, I am WITH ya brother! Keep on roaring, and it is going to happen!
Isn't that what you use to get around to all your different gold holdings and offshore bank accounts?
GOOD MORNING EZ.
Good morning Ske. Wow, can't believe still no powerball winner. I guess someone out there wants us to win the really really big jackpot!
*gasp* Have futures gone RED since I left?? POMO will save the day I am sure.
LOL, no muscles here. I am one of the tall slim ones, but I got a nice 6-pack that I worked HARD for these past months out here. I can work out from now until doomsday, and I will only get tone, but no big muscles, like EZ.
We do PRIVATE parties as well! And, we are CHEAP. Just let us know, and we can be at your door by tonight.
Oh, by the way, that is LongHorn up front.
LOL, he will NEVER see this, so I am safe.
Wow! Didn't he also win the Kentucky Derby?
OK, off to the gym, should be back within a half hour, the old man can't last much longer. Will be working on my sexy bod to match my sexy haircut.
MAY impact some of those stocks mentioned, but probably eBay especially, as I am GUESSING that every mom and pop that are selling their old socks and such would also need to collect tax? That can cause a HUGE paperwork and bureaucratic nightmare. There is also the Interstate Commerce Clause, and some other stuff to get around. Going to be fugly.
I am glad I can get you laughing so early in the morning!
This is going to be a knock out drag out fight, but I think in the end, it will happen.
AAPL is really something else lately, what a beauty. I see overall futures just lingering. No real catalysts this week to be a market mover, unless some idiocy comes out of the Israel thing, or some other European country decides to raid the bank depositors.
I am back, and look super sexy now that I got my hair cut. Will be with ya for a few minutes, next up is hit the gym with the old man. Mondays REALLY stink!
Good morning Stuff. I hope the eye appointment goes well. I am getting ready to get a haircut myself, will be back in about an hour.
Very quiet futures as of 0400 EST. Gold and Silver bumping up a bit, but may have the morning beat down in a few hours.
NO ECONOMIC DATA TODAY OR FOR THE NEXT FEW DAYS. This week we see if there is anything that can float this pig up more than it already is. May see some profit taking and then another up move next week, my guess.
The spring economic forecasts from the European Commission have a chilly feel to them http://stks.co/qBFm
Near-Record NYSE Margin Debt Leads to Caution: Chart of the Day http://stks.co/aT6t
Very quiet econ news week, pretty much NOTHING until the next Thursday unemployment report. A VERY dull week. (Of course, there is always the Middle East and Europe that makes things interesting.)