stock-exchange-

Video: Exchange-Operator Bats Global Files Initial Offering

by on May 13, 2011

May 13 (Bloomberg) — Bats Global Markets, the third-largest U.S. stock exchange operator, filed for an initial public offering as the company tries to raise cash to compete in a consolidating market for equity trading. The electronic platform began trading stocks listed on Nasdaq Stock Market about five years ago with two customers and agreed in February to buy London-based Chi-X Europe Ltd. Bloomberg’s Suzanne O’Halloran reports on Bloomberg Television’s “InBusiness With Margaret Brennan.” (Source: Bloomberg)

See the original post:
Video: Exchange-Operator Bats Global Files Initial Offering

Taiwan Greater China Fund Announces Appointment of Chief Executive Officer

by on May 9, 2011

NEW YORK, NY–(Marketwire – May 9, 2011) – The Taiwan Greater China Fund ( NYSE : TFC ) (the “Fund”), a diversified closed-end registered management investment company listed on the New York Stock Exchange, announced today that the Fund’s Board of Trustees (the “Board”) had appointed Frederick C. Copeland as the Chief Executive Officer of the Fund. Mr. Copeland also serves as the Chairman of the Fund. At the same time, the Fund’s Board accepted the resignation of Steven R. Champion as President and Chief Executive Officer of the Fund. Mr. Champion will continue to serve as the portfolio manager of the Fund.

Read this article:
Taiwan Greater China Fund Announces Appointment of Chief Executive Officer

Video: Grasso Says NYSE Merger Should Offer Pac Rim Exposure

May 6, 2011

May 6 (Bloomberg) — Richard Grasso, former chairman and chief executive officer of the New York Stock Exchange, talks about the battle for NYSE Euronext between Nasdaq OMX Group Inc. and IntercontinentalExchange Inc. and Deutsche Boerse AG. Grasso, speaking with Betty Liu and Dominic Chu on Bloomberg Television’s “In the Loop,” also discusses measures taken to prevent another “flash crash” in the stock market. Ralph Schlosstein, chief executive officer of Evercore Partners Inc., also speaks. (Source: Bloomberg)

Read the full article →

Video: Englund Says U.S. Payrolls Report `Defied’ Market Fears

May 6, 2011

May 6 (Bloomberg) — Michael Englund, chief economist at Action Economics LLC, talks about April payrolls data released today by the Labor Department and outlook for the economic recovery. Payrolls expanded by 244,000 last month, the biggest gain since May 2010, after a revised 221,000 increase the prior month. The jobless rate climbed to 9 percent, the first increase since November, a separate survey of households showed. Englund speaks with Betty Liu on Bloomberg Television’s “In the Loop.” Richard Grasso, former chairman and chief executive officer of the New York Stock Exchange, also speaks. (Source: Bloomberg)

Read the full article →

Video: Englund Says U.S. Payrolls Report `Defied’ Market Fears

May 6, 2011

May 6 (Bloomberg) — Michael Englund, chief economist at Action Economics LLC, talks about April payrolls data released today by the Labor Department and outlook for the economic recovery. Payrolls expanded by 244,000 last month, the biggest gain since May 2010, after a revised 221,000 increase the prior month. The jobless rate climbed to 9 percent, the first increase since November, a separate survey of households showed. Englund speaks with Betty Liu on Bloomberg Television’s “In the Loop.” Richard Grasso, former chairman and chief executive officer of the New York Stock Exchange, also speaks. (Source: Bloomberg)

Read the full article →

Video: Solis Says Worker Training Critical to Job Growth

May 6, 2011

May 6 (Bloomberg) — U.S. Labor Secretary Hilda Solis talks about the April U.S. jobs report released today and the outlook for the economy. Payrolls increased by 244,000 workers last month, the biggest gain since May 2010, the Labor Department said. The jobless rate climbed to 9 percent. Solis speaks with Betty Liu on Bloomberg Television’s “In the Loop.” Richard Grasso, former chairman and chief executive officer of the New York Stock Exchange, also speaks. (Source: Bloomberg)

Read the full article →

Video: Solis Says Worker Training Critical to Job Growth

May 6, 2011

May 6 (Bloomberg) — U.S. Labor Secretary Hilda Solis talks about the April U.S. jobs report released today and the outlook for the economy. Payrolls increased by 244,000 workers last month, the biggest gain since May 2010, the Labor Department said. The jobless rate climbed to 9 percent. Solis speaks with Betty Liu on Bloomberg Television’s “In the Loop.” Richard Grasso, former chairman and chief executive officer of the New York Stock Exchange, also speaks. (Source: Bloomberg)

Read the full article →

GM’s U.S. Sales Rise Despite Production Concerns

May 3, 2011

DETROIT (Bernie Woodall and Ben Klayman) – General Motors Co’s U.S. sales rose 26 percent in April, a sign that the automaker has not been greatly affected by supply disruptions from Japan after the March 11 earthquake. Auto sales are an early indicator each month of U.S. consumer demand, and GM, as the biggest U.S. seller of autos and the first to report April sales on Tuesday, indicated that industry sales will be strong. A Thomson Reuters poll of 40 economists and analysts had predicted a gain of 16 percent over last year. GM said that its retail sales were up 25 percent, driven by higher sales for its fuel-efficient Chevrolet compact cars and compact crossovers: the Cruze, Equinox and Terrain. The Cruze, the compact car that GM introduced last year, is now the second-biggest selling vehicle in the automaker’s lineup, behind only its Silverado pickup truck. Cruze sales so far this year are about triple the sales of the car it replaced, the compact Cobalt. “Consumers are continuing to rethink their vehicle choice,” said Don Johnson, GM vice president for U.S. sales. Ford Motor Co sales analyst George Pipas said this week that Ford is also showing a major shift in consumer taste toward smaller and more fuel-efficient cars as gasoline prices rise. U.S. retail gasoline prices rose 8 cents in the past week to $3.96 per gallon and are now $1.07 higher than a year ago, according to government figures released on Monday. Pipas said the he believes that high gasoline prices are convincing many consumers to “pull the trigger” on a new vehicle purchase. “I believe there is a call to action,” Pipas said of consumer purchases this spring. “Summer is the driving season, and I’m going to pull the trigger,” he said of consumers. Sales for the other automakers in the U.S. market will be issued later on Tuesday. On Monday in Japan, new-vehicle sales in April halved, sinking to the lowest monthly tally on record, as Japanese automakers felt the full brunt of the March earthquake. Also on Monday, French car sales fell 1.2 percent, reflecting the end of a scrappage scheme. In Italy, they fell to the lowest level in 15 years. Last month, Ford outsold GM for only the second time in 13 years. Ford and other automakers will report U.S. sales later on Tuesday. The world’s top automaker by sales, Toyota Motor Corp, is expected to show weaker sales than its U.S. counterparts, due to production and inventory problems, analysts said. GM shares were up 2.4 percent at $32.94 on the New York Stock Exchange on Tuesday morning. (Additional reporting by Deepa Seetharaman, editing by Matthew Lewis) Copyright 2011 Thomson Reuters. Click for Restrictions .

Read the full article →

Avalon Rare Metals (NYSE:AVL) Rings the Closing Bell at the New York Stock Exchange

April 28, 2011

Avalon Rare Metals (NYSE:AVL) Rings the Closing Bell at the New York Stock Exchange

Read the full article →

Daniel Dicker: How To Drop Gas Prices By a Dollar — Overnight

April 27, 2011

Want to see lower prices at the pumps? Obama says there’s “no silver bullet,” while Boehner considers removing tax subsidies to big oil. Romney and Pawlenty take up the cry of “drill, baby, drill,” but even unrestricted access to U.S. reserves would only result in another 500,000 barrels a day at the outside, a piddling help to our country that consumes 21 million barrels a day. The bottom line is, none of those ideas will help us lower gas prices in the short term. How about a ban on all long-only commodity funds (LOCFs) and commodity ETFs instead? I believe such a bill supporting the liquidation of these funds could knock a dollar a gallon off the price at the pumps practically overnight. For the past ten years, but particularly in the last five, Wall Street has created and sold commodity index funds, ETFs, hedge funds and online trading to compel investors into buying oil as if it were a stock or a bond, even though oil is anything but. They’ve had incredible success: Since 2003, index investment into commodities, overwhelmingly directed at oil, has grown from virtually zero to now top $350 billion dollars. ETFs have increased by $50 billion in the last year alone and commodity hedge funds, as well as individuals investing in oil, have ballooned similarly. But oil is not like a stock. Commodity markets require equal amounts of sellers to match the number of buyers, and this one-sided appetite to own oil has had one overwhelming effect: driving prices through the roof. And who’s paying for it? It’s not just the consumer who suffers from the wagering taking place with oil. More than 50% of the businesses listed on the New York Stock Exchange have energy as their primary input cost. For businesses both small and large, hyped energy prices threaten our tenuous recovery by stifling new hiring and growth. The high costs of imported oil only serve to fill Middle Eastern sovereign wealth funds with U.S. capital. A recent shocking report from Morgan Stanley puts the total “oil bill” of current crude prices at $2.4 trillion dollars or 3.7% of the total GDP of oil importing countries. For Wall Street, this is just collateral damage. They continue to fight for these new instruments and new markets for the same reasons they created and traded sub-prime mortgage securities and credit default swaps: Wall Street, and particularly the major investment banks, are terrific at trading off of and posting huge profits from these money flows. What can be done to stop this? What’s clear is that oil is just too important a resource — to every aspect of our lives — to be subject to the same financial manipulations as other investment assets like stocks and bonds. Besides just the costs for gas and heat, energy is the main component cost for processing foods and drugs, plastics and aluminum – just about everything we depend upon. A quick way to promote fairer prices would be a direct ban on commodity indexes and ETFs that use futures and swaps. Not one dollar invested in any of these instruments could be mistaken for a “hedge” — they’re all just bets. Our priorities should be clear and non-partisan: the right to bet on oil prices should be less important than the right of consumers and businesses to a fair and honest price. So far, however, this measure to try and control some of the money flowing into oil is not even being discussed. And it’s not a change that anyone should expect any time soon. Wall Street influence in Washington is powerfully strong. Rolling back the clock on financial “innovations” that benefit traders is an uphill battle. Without further action, however, higher oil prices become a self-fulfilling prophecy: rising prices inspire more money to bet on rising prices. As early as this summer, we could be looking at $5 a gallon gas.

Read the full article →

McDonald’s Expects Significant Increases In Food Prices

April 21, 2011

NEW YORK/LOS ANGELES (Phil Wahba and Lisa Baertlein) – McDonald’s Corp said higher costs for beef, bread and other items cut into its quarterly margins and that inflation for the year would be worse than expected. The inflation comments on Thursday sent shares of the world’s largest restaurant company down 2 percent, even though strong sales helped McDonald’s post a first-quarter profit that beat expectations. March sales at established restaurants also rose more than expected. “The key question now will be how they are going to raise prices to try to offset some of these food costs,” Edward Jones analyst Jack Russo said. McDonald’s said it now expects food costs to rise between 4 percent and 4.5 percent in the United States and Europe this year. In January, McDonald’s said it expected its food costs to be 2 percent to 2.5 percent higher this year in the United States and up between 3.5 percent and 4.5 percent in Europe. McDonald’s has been outperforming most other U.S. restaurant chains and taking market share from smaller rivals amid a slow U.S. economic recovery. After struggling during the recession, McDonald’s has outperformed its fast-food peers by updating its menu. The company pointed to its McCafe menu as a source of sales gains. “The bottom line is they’re still doing a great job of growing revenue,” said Peter Jankovskis, co-chief investment officer at Oakbrook Investments in Lisle, Illinois. The firm owns McDonald’s shares. Analysts remain concerned about high gas prices that could prompt fast-food restaurant patrons to cut back. But Jankovskis said McDonald’s was better equipped than others to cope with those prices. The company has more locations than its rivals, so customers do not have to travel far to get to one. “The big test will come in the summer months with gasoline remaining in the neighborhood of $4.00 (a gallon) — that’s when the strength of McDonald’s will come through,” he said. McDonald’s results come a day after rival Yum Brands Inc reported better-than-expected sales due to strength in China. Chipotle Mexican Grill, which has nearly all of its 1,100 restaurants in the United States, saw higher food costs eat into margins. Total revenue at the Golden Arches during the first quarter that ended March 31, rose 9 percent to $6.1 billion, with sales in Europe leading the way. March sales at restaurants open at least 13 months were up 3 percent in the United States, up 4.9 percent in Europe and gained 0.5 percent in McDonald’s Asia/Pacific, Middle East and Africa unit. Globally they rose 3.6 percent. Analysts, on average, were looking for same-restaurant sales to rise almost 2 percent in the United States, more than 3 percent in Europe and 2 percent in APMEA. Sales in Asia may have been pinched by the disasters in Japan. The United States contributes just over one-third of McDonald’s overall revenue, compared with 40 percent for Europe — its largest market for sales and one where it has more middle-class appeal. First-quarter net income rose 10.9 percent to $1.21 billion, or $1.15 per share, from $1.09 billion, or $1 per share, a year earlier. That beat Wall Street expectations of a profit of $1.14 per share, according to Thomson Reuters I/B/E/S. But operating margin fell to 17.7 percent from 18.2 percent as costs for food and paper rose. Food and paper costs were 33.6 percent of sales in the quarter, compared with 32.9 percent a year earlier. McDonald’s shares fell 1.9 percent, or $1.56, TO $76.84 in morning New York Stock Exchange trading. (Reporting by Phil Wahba and Lisa Baertlein; Editing by Maureen Bavdek) Copyright 2011 Thomson Reuters. Click for Restrictions .

Read the full article →

Mongolian Prime Minister And London Stock Exchange Group (LON:LSE) CEO Seal Partnership To Develop Mongolian Stock Exchange

April 7, 2011

Mongolian Prime Minister And London Stock Exchange Group (LON:LSE) CEO Seal Partnership To Develop Mongolian Stock Exchange

Read the full article →

GM Sales Soar 11.4 Percent In March On Market ‘Shift’

April 1, 2011

DETROIT (By Deepa Seetharaman and Ben Klayman) – General Motors Co. said on Friday that its U.S. sales rose 11.4 percent in March as higher gasoline prices drove demand for smaller, more fuel-efficient vehicles such as the Chevrolet Cruze. The U.S. automaker said total U.S. sales in March for its four brands rose to 206,621 vehicles from 185,406 last year. Including its four former brands — Hummer, Pontiac, Saab and Saturn — GM sales rose 9.6 percent. Auto sales represent one of the first snapshots every month of U.S. consumer demand, and 34 economists surveyed by Reuters estimated March sales would rise 12 percent on average. Other automakers are scheduled to report March U.S. sales later on Friday. March is traditionally a stronger sales month than February, but lower incentive spending by GM, Toyota Motor Corp and others likely resulted in a lower growth rate than February’s stronger-than-expected 27 percent gain. GM sales chief Don Johnson said incentives per vehicle on average were $600 to $800 lower last month and the automaker would be prudent and disciplined with its deals going forward. The expected slower industry growth has raised concerns about the recovery in the U.S. auto market, although U.S. employment on Friday recorded a second straight month of solid gains in March and the jobless rate fell to a two-year low of 8.8 percent, marking a decisive shift in the labor market that should help underpin the economic recovery. Despite the sales increase, rising oil prices and the resulting pain at the pump could push consumers away from more lucrative light trucks. Light truck sales, which include pickup trucks and sport utility vehicles, make up a little more than half of U.S. auto sales and account for a disproportionate share of profits at the U.S. automakers because of their higher prices. Gasoline prices rose more than 3 cents to $3.60 a gallon over the last week, the Energy Department said. The average price of regular gas is 80 cents higher than a year ago as conflict in Libya and rising tensions in the Middle East have sent the cost of crude oil to above $100 a barrel. Another focus is the aftermath of the Japanese earthquake and subsequent tsunami last month which caused many supplier plants there to close or cope with power outages. GM said total U.S. sales for passenger cars rose 15 percent in March, while crossover and pickup truck sales rose 20 percent and 11 percent, respectively. “Clearly, as the market has shifted, we’re much better positioned from a product portfolio to take advantage of it,” Johnson said. GM shares were up 0.2 percent at $31.09 on the New York Stock Exchange on Friday morning. (Reporting by Ben Klayman and Deepa Seetharaman in Detroit, editing by Matthew Lewis) Copyright 2010 Thomson Reuters. Click for Restrictions .

Read the full article →

Video: Grasso Expects Higher Bids in Battle for NYSE Euronext

April 1, 2011

April 1 (Bloomberg) — Richard Grasso, former chairman and chief executive officer of the New York Stock Exchange, talks about the unsolicited bid by Nasdaq OMX Group Inc. and IntercontinentalExchange Inc. for NYSE Euronext in an effort to snatch the owner of the NYSE from Deutsche Boerse AG. Grasso speaks with Betty Liu, Dominic Chu and Jon Erlichman on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

Read the full article →

Video: Nasdaq OMX, ICE Offer to Buy NYSE for $11.3 Billion

April 1, 2011

April 1 (Bloomberg) — Nasdaq OMX Group Inc. and IntercontinentalExchange Inc. offered to buy NYSE Euronext for about $11.3 billion as the companies teamed up in an attempt to snatch the New York Stock Exchange from Deutsche Boerse AG. The companies offered $42.50 in cash and stock for each NYSE Euronext share, according to a statement released today. Bloomberg’s Erik Schatzker and Scarlet Fu report. (Source: Bloomberg)

Read the full article →

Video: Salem Sees `Tremendous’ U.S. Investor Interest in Egypt

March 25, 2011

March 25 (Bloomberg) — Mahmoud Salem, head of depository receipts for the Middle East at Bank of New York Mellon Corp., discusses the role of depository receipts during the closure of Egypt’s stock exchange, investor interest in Egypt and investment opportunities in the country. Salem speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

Read the full article →

Video: Egypt Stock Exchange’s Abdul Salem Discusses Trade Halt

March 23, 2011

March 23 (Bloomberg) — Mohamed Abdul Salem, chairman of Egypt’s stock exchange, talks about the halt in trading after shares tumbled following a closure of almost two months. He speaks with Francine Lacqua on Bloomberg Television’s “On The Move.”

Read the full article →

Dan Mirvish: The Hathaway Effect: How Anne Gives Warren Buffet a Rise

March 2, 2011

Whatever you may think of how Anne Hathaway and her co-host James Franco did as hosts of the newer, younger, hipper Oscars, one thing appears to be certain: When Anne Hathaway makes headlines, the stock for Warren Buffet’s Berkshire-Hathaway goes up. Think of Berkshire-Hathaway shares ( BRK.A ) as a really expensive version of the IMDb’s StarMeter (which actually is designed to go up and down as actors make the news). But a bedrock member of the New York Stock Exchange? The evidence would indicate as much. On the Friday before the Oscars, Berkshire shares rose a whopping 2.02%. And on the Monday just after the Academy Awards, they rose again, this time 2.94%. But it’s not just an Oscar bounce, or something Warren Buffet may have said in the newspaper, or even necessarily something the company itself is doing (i.e. rumors afoot to buy Costco ). Just look back at some other landmark dates in Anne Hathaway’s still young career: Oct. 3, 2008 – Rachel Getting Married opens: BRK.A up .44% Jan. 5, 2009 – Bride Wars opens: BRK.A up 2.61% Feb. 8, 2010 – Valentine’s Day opens: BRK.A up 1.01% March 5, 2010 – Alice in Wonderland opens: BRK.A up .74% Nov. 24, 2010 – Love and Other Drugs opens: BRK.A up 1.62% Nov. 29, 2010 – Anne announced as co-host of the Oscars: BRK.A up .25% My guess is that all those automated, robotic trading programming are picking up the same chatter on the internet about “Hathaway” as the IMDb’s StarMeter, and they’re applying it to the stock market. Of course, this isn’t necessarily bad news for the investor. After all, can you imagine what might have happened to Berkshire stock if Warren Buffet had appeared nude in Love and Other Drugs rather than Anne Hathway? Perhaps it’s best if we don’t think about it.

Read the full article →

CEO, COO Of E-Commerce Giant Alibaba Resign

February 21, 2011

SHANGHAI â Chinese e-commerce giant Alibaba says two of its top executives are resigning to take responsibility after a probe discovered more than 2,000 suppliers had defrauded customers, sometimes with the alleged collusion of its sales staff. Alibaba said in a notice Monday to the Hong Kong Stock Exchange that its chief executive and chief operating officers, who were not implicated by the investigation, were resigning to take responsibility for the company’s “breakdown in integrity.” The company said 100 sales representatives, out of a total workforce of 14,000, allegedly involved in defrauding customers were fired. Some supervisors and sales managers had either intentionally or negligently allowed the creation of fraudulent “storefronts” by letting some 2,326 suppliers evade authentication and verification measures, it said. Most purchases involved offerings of popular consumer electronics at bargain prices with low required minimum orders. “The methods of the perpetrators suggest that they have engineered an organized and systemic attack on the integrity of the Alibaba.com platform for illegal gains,” the company said. “The investigation concluded that the pursuit of short-term financial gain at all cost had tainted parts of our sales organization, risking serious damage to our company’s core values,” it said. Jack Ma, the entrepreneurial whiz and former English teacher who founded Alibaba in 1999, said he was sending a strong message meant to reinforce trust in his company, which has thrived in this age of online commerce and outsourcing. “One of our most important values is integrity. That means the integrity of our employees and the integrity of our online marketplaces as trusted and safe places for our small business customers,” Ma said in a statement. Jonathan Lu Zhaoxi, CEO of affiliated Chinese e-commerce company Taobao, will replace David Wei Zhe as Alibaba’s CEO, the notice said. It did not say who would replace resigning COO Elvis Lee Shi-Huei. Alibaba, based in the eastern Chinese city of Hangzhou, claims more than 56 million registered users in more than 240 countries and regions. The company says it investigated after noticing an increase in complaints of fraud by buyers using its websites in late 2009. The probe found that 1,219 of its “Gold Supplier” customers who joined in 2009 and 1,107 that joined in 2010 had engaged in fraud against buyers. Alibaba terminated the “storefronts” of those allegedly fraudulent customers and will collaborate with authorities to seek redress, said company spokeswoman Linda Kozlowski. But such efforts would depend partly on buyers deciding to take legal action, she said. The average amount of fraud involved in the cases was less than $1,200, the company said. It gave no total amount involved. But Kozlowski said the company has paid out $1.7 million since 2009 from a fund set up to redistribute to buyers any revenues from companies found to be engaged in fraud. “We decided we did not want to take revenue from fraud,” she said. Alibaba, whose shares are traded in Hong Kong, says the cases would not have an impact on its overall finances.

Read the full article →

Goldman Sachs Former Chief Whitehead Says NYSE Deal ‘An Insult’

February 14, 2011

John C. Whitehead isn’t celebrating the 219-year-old New York Stock Exchange’s plan to be acquired by Germany’s 18-year-old Deutsche Boerse AG.

Read the full article →

Felix Salmon: Wall Street’s Dead End

February 14, 2011

THE stock market has been big news in recent days. Last week’s report that Deutsche BÃ¶rse, a giant German exchange, intends to buy the New York Stock Exchange, creating a company worth some $24 billion, arrived shortly after the Dow broke the 12,000-point barrier for the first time since before the financial crisis.

Read the full article →

Hong Kong stock exchange to consider international alliance

February 10, 2011

Hong Kong stock exchange to consider international alliance

Read the full article →

Taiwan Greater China Fund Announcement Regarding Annual Meeting and Appointment of New Chairman of the Board

January 20, 2011

NEW YORK, NY–(Marketwire – January 20, 2011) – The Taiwan Greater China Fund ( NYSE : TFC ) (the “Fund”), a diversified closed-end registered management investment company listed on the New York Stock Exchange, announced today that, in order to fully consider strategic options available to the Fund, including among other things, the option of becoming an open-end investment management company, it anticipates holding the Fund’s 2010 annual meeting of shareholders in May 2011.

Read the full article →

Motorola To Officially Split Into Two Companies

January 3, 2011

NEW YORK — Motorola Inc.’s formal split into two companies on Tuesday will mark the final step in the years-long breakup of a consumer electronics industry pioneer. Motorola began selling car radios in the 1930s and expanded into TVs in the ’40s and cell phones in the ’80s. The company has become increasingly diverse, and the breakup that began in 2008 is motivated by a desire to present two simple businesses to investors rather than one complicated one. Motorola is splitting its consumer-oriented side, which makes cell phone and cable set-top boxes, from the professional business of selling police radios and barcode scanners to government agencies and large companies. The new companies will be called Motorola Mobility and Motorola Solutions. The two companies will begin trading on the New York Stock Exchange Tuesday, allowing new investors to buy shares. Motorola shareholders of record on Dec. 21 will receive one share of Mobility for every eight shares of Motorola Inc. they already held. Motorola Inc. shares will then go through a 1-for-7 reverse split and become Motorola Solutions shares. Existing investors have already been trading stock in the newly formed companies on a “when issued” basis for almost a month. Although “when issued” trades will not be settled until Tuesday when the split became official, these preliminary moves help decide how Motorola’s roughly $21 billion market cap would be divided between the two companies. In trading Monday, shares of Mobility jumped $1.14, or nearly 4 percent, to close at $30.24, putting the value of the company at about $8.9 billion. Mobility shares gained 21 percent since they started trading on a “when issued” basis in December. Solutions’ shares fell 57 cents, or 1.5 percent, to $37.48, for a total market cap of about $12.6 billion. Shares have lost 8 percent in the last month. As part of the breakup, Motorola is also selling off a division that makes network equipment for cell phone companies to Nokia Siemens Networks, a Finnish-German joint venture. Regulators in China are still reviewing the deal, which is expected to close in the next three months. Motorola’s professional business has become the crown jewel of Motorola’s portfolio, while its cell phone business is just emerging from a long slump. The divisions that will become Motorola Mobility had $2.9 billion in sales in the most recent quarter, compared with $1.9 billion for the Motorola Solutions segments. However, the $321 million in operating earnings at Solutions was much stronger than the $3 million that Mobility made. The company’s cell phone division once enjoyed strong sales thanks to the Razr, a slim, clamshell-style feature phone that debuted in 2004 and became a best-seller. As recently as 2007, cell phones accounted for two-thirds of the company’s revenue. But Motorola couldn’t repeat the Razr’s success as consumers began flocking toward smartphones such as Apple Inc.’s iPhone. Motorola’s manufacturing process also yielded smaller profits than competitors’, and so when cell phones sales began dwindling, its losses loomed that much larger. In 2008, under pressure from activist investor Carl Icahn, Motorola set the breakup in motion, hiring Sanjay Jha, the chief operating officer of mobile chipmaker Qualcomm Inc., to strengthen its declining cell phone business. The breakup was originally slated for 2009, but Motorola postponed it due to the economic downturn. In November, the company announced a definitive date for the long-planned split. The company’s cell phone business has since rebounded. In October Motorola said the division was profitable for the first time in three years, due in large part to its focus on smart phones such as the Droid that run Google Inc.’s Android software, which competes with the iPhone. Solutions will continue to be based in Schaumburg, Ill., while Mobility will take up a temporary home in nearby Libertyville, Ill. Motorola officials have said that it may later move its headquarters team to San Diego, the San Francisco area or Austin, Texas.

Read the full article →

Surreal And Adorable: ‘Nutcracker’ Cast Visits NYSE (PHOTOS)

December 23, 2010

Performers from The New York City Ballet’s The Nutcracker visited the New York Stock Exchange on Thursday. In honor of its 56 anniversary on Broadway, the cast, decked out in full holiday regalia (including the wood-headed Nutcracker himself) rang the opening bell at the beginning of the trading day. It was a surreal sight. Lithe ballerinas twisted on the trading floor while traders schooled the tiny cast members in the intricacies of the economy. Adorable, indeed. George Balanchine’s The Nutcracker runs through January 2, 2011 at Manhattan’s David H. Koch Theater at Lincoln Center.

Read the full article →

Video: Schlosstein Says Obama `Deserves Credit’ for CEO Talks

December 15, 2010

Dec. 15 (Bloomberg) — Ralph Schlosstein, chief executive officer of Evercore Partners, discusses President Barack Obama’s economic policies and meetings with business leaders in Washington today. He speaks with Betty Liu on Bloomberg Television’s “In the Loop.” Richard Grasso, former chief executive officer of the New York Stock Exchange, also speaks. (Source: Bloomberg)

Read the full article →

Video: Grasso Says CEO Summit Marks Beginning of `New Era’

December 15, 2010

Dec. 15 (Bloomberg) — Richard Grasso, former chief executive officer of the New York Stock Exchange, discusses the outlook for President Barack Obama’s meeting with business executives. The summit, held in Washington today, is Obama’s largest private meeting with the chief executive officers since he entered the White House. Grasso talks with Betty Liu and Jon Erlichman on Bloomberg Television’s “In the Loop.” (This is an excerpt of the full interview. Source: Bloomberg)

Read the full article →

Australian Market Report of December 9, 2010: Indochine Mining Limited (ASX:IDC) Lists On Australian Stock Exchange

December 8, 2010

Australian Market Report of December 9, 2010: Indochine Mining Limited (ASX:IDC) Lists On Australian Stock Exchange

Read the full article →

‘Flash Crash’ Report: Waddell & Reed’s $4.1 Billion Trade Blamed For Market Plunge

October 1, 2010

WASHINGTON — A trading firm’s use of a computer sell order triggered the May 6 market plunge, which sent the Dow Jones industrial average dropping nearly 1,000 points in less than a half-hour. A report issued Friday by the Securities and Exchange Commission and the Commodity Futures Trading Commission determined the so-called “flash crash” was caused when the trading firm executed a computerized selling program in an already stressed market. The firm’s trade, worth $4.1 billion, led to a chain of events the ended with market players swiftly pulling their money from stock market, the report said. The report does not name the trading firm. But only one trade that day fit the description in the report. The firm Waddell & Reed, based in Overland Park, Kan., has acknowledged making such a trade that day. The free fall highlighted the growing complexity and diversity of the fast-evolving securities markets. Sleek electronic trading platforms now compete with the traditional exchanges, with stocks now traded on some 50 exchanges beyond the New York Stock Exchange and the Nasdaq Stock Market. Powerful computers give so-called “high frequency” traders a split-second edge in buying or selling stocks – based on mathematical formulas. The risk looms that electronic errors at high speeds could ripple through markets and disrupt them. The stock market was already stressed even before the plunge that day. Anxiety was mounting over a debt crisis in Europe. The Dow Jones was down about 2.5 percent at 2:30 p.m. when the trader placed an enormous sell order on a futures index of the S&P’s index. The trade on the E-Mini S&P 500 was automated by a computer algorithm that was trying to hedge its risk from price declines. In that one trade, 75,000 contracts were sold in a span of 20 minutes. It was the largest single trade of that investment since the start of the year. The firm’s previous transaction of that size took more than five hours, the report notes. The trade triggered aggressive selling of the futures contracts and that sent the index down about 3 percent in four minutes. In a previous statement, Waddell & Reed acknowledged that it had sold the contracts to reduce its funds’ risk quickly. It said traders were worried that the European debt crisis could spread to U.S. markets. The company maintained that the transaction “was not the cause of any abnormal price action.” It said the move involved just 1 percent of the contracts of that type that changed hands on May 6. The sale would not have caused problems in a normal market, the company said. “Our portfolio managers and the funds acted in a manner consistent with the interests of their fund shareholders,” it said. Nearly 21,000 trades were canceled in the ensuing weeks because the exchanges deemed them erroneous. Responding to the episode, the SEC and the major U.S. exchanges agreed on a six-month pilot program that briefly halts trading of some stocks that mark big price swings. The new “circuit breakers” are in effect until Dec. 10. Under the rules, trading of any Standard & Poor’s 500 stock that rises or falls 10 percent or more within a five-minute span is halted for five additional minutes. On May 6, about 30 stocks listed in the S&P 500 index fell at least 10 percent within five minutes. (This version CORRECTS where the firm is based. )

Read the full article →

Coeur to delist from Australian Stock Exchange

September 16, 2010

Coeur to delist from Australian Stock Exchange

Read the full article →

Video: Grasso Discusses Boehner’s Call for Geithner Resignation: Video

August 24, 2010

Aug. 24 (Bloomberg) — Richard Grasso, former chief executive officer of the New York Stock Exchange, talks about U.S. House Minority Leader John Boehner’s call for President Barack Obama to fire Treasury Secretary Timothy Geithner and the other remaining members of the president’s economic team. Grasso talks with Margaret Brennan on Bloomberg Television’s “InBusiness. (This is an excerpt of the full interview. Source: Bloomberg)

Read the full article →

‘The Expendables’ Visit NYSE, Terry Crews Goes Shirtless

August 19, 2010

The already over-the-top testosterone levels at the New York Stock Exchange were pushed to the max this morning when the stars of ” The Expendables ” dropped in. Sylvester Stallone, Terry Crews, Jason Statham, and Dolph Lundgren used their brawn to ring the opening bell. Crews even went so far as to doff his shirt in the middle of the trading floor. Luckily for everyone Crews refrained from doing any building kicks . CHECK OUT PHOTOS AND VIDEO BELOW:

Read the full article →

Video: Yankees Spread Hope for Sierra Leone War Survivor: Video

August 19, 2010

Aug. 19 (Bloomberg) — The New York Yankees honored 18-year-old Mohamed Kamara, who survived a bloody civil war in Sierra Leone, yesterday as part of their HOPE Week initiative, a program that seeks to recognize individuals who embody “hope.” Kamara’s day started at the New York Stock Exchange, where he met Yankee pitcher CC Sabathia, Hall of Famer Reggie Jackson and General Manager Brian Cashman. Bloomberg’s Michele Steele reports. (Source: Bloomberg)

Read the full article →

‘Jersey Shore’ Cast At New York Stock Exchange Today, Rings Opening Bell, Fist Pumps (VIDEO)

July 27, 2010

The cast of MTV’s wildly popular reality show “The Jersey Shore” brought some extra excitement to the New York Stock Exchange this morning when they rang the opening bell. Snooki stood at the podium surrounded by the rest of the cast with the MTV logo above their heads as the super tan crew fist pumped, clapped and waved to traders on the floor at 11 Wall Street. The cast is celebrating the upcoming premiere of the second season of their hit show, which was filmed in Miami, and is currently in the filming stages of a third season in Seaside Heights, N.J. The show premieres Thursday, July 29 at 10PM ET on MTV. WATCH: Visit msnbc.com for breaking news , world news , and news about the economy

Read the full article →

Sheila Tendy: Love on the Other Side of The Street – Can Hope Conquer Wall Street’s Woes?

July 25, 2010

The world is in the midst of an intense struggle for survival – Good versus Evil, Dark versus Light. We feel the grit of our times. So much of our focus has been on bank bailouts, regulatory reform and massive fraud. Bernie Madoff will live out his days in prison, yet investors are no less devastated. None of it matters if we don’t feel a reason to hope for the future. We are worn out by the global economic crisis. We are tired of floundering rescue plans and masters of the universe gone awry. We are tired of watching friends in tears over lost jobs, lost homes, and lost dreams. We are tired of witnessing global economic devastation. While this mess will be messy for a good while longer, we may have found one reason to hope in the most unlikely of places. Rich folks hit hard by the economic crisis are turning towards each other as never before. Tough times have made it chic for the uber-privileged to rely on friends and family for practical support. Conversations can be overheard everywhere about how to join forces to handle the things that many can no longer afford. People are trading off on childcare, sharing their tales of woe over cheaper lattes while thinking carefully about expenses. Some are even considering communal living. One of the biggest problems with living a life of excess is that you can pay for everything – McMansions, full time housekeepers, round the clock childcare, gourmet cooks, chauffer driven cars, boats, and fancy clothes. You really don’t NEED anyone if you can pay someone else to take care of it for you. We live in a society where love is viewed much more as an esoteric feeling as opposed to the actions we take in support of that feeling. Nothing like being out of work to remind us of how much you really do need other people. When life is lived with no need to turn towards anyone for help, the absence of need, strangely, comes into high relief. People are becoming each other’s cheerleaders when there is nothing to cheer about. That all by itself is a reason to hope. In an attempt to restore my own hope, I gathered with friends to bring some Love to Wall Street. The purposeful venue was the terrace of 15 Broad Street in New York City, formerly the headquarters of JP Morgan and once at the vortex of the banking industry in the United States. The building overlooks the New York Stock Exchange and has amazing historic significance for our economy. The agreement to form the New York Stock Exchange was signed in front of this spot under a Buttonwood Tree in 1792. Since that is where it all began, panning the lense way back seemed apropos. The collective unconscious of the history of this country’s economy seemed palpable as we overlooked the New York Stock Exchange by the light of the Moon. At eye level in the pediment we faced the imposing marble sculpture by John Quincy Adams Ward, above six tall Corinthian capitals called “Integrity Protecting the Works of Man.” Integrity Protecting the Works of Man… When there is nothing left to do, love is usually the answer. We’ve heard it said that love conquers all, but can love conquer Wall Street’s woes? It seemed like it had a better shot of helping the economy than any plan I’ve read about in the papers. Call it meditation, call it prayer or just a desperate attempt to feel better, but it was a packed house. Did my gathering make a difference? Well, the market is still insanely unpredictable and the global economic fallout continues to play out each day. However, while the economic trauma was apparent, everyone wanted to change their perspective on Wall Street from one of fear and mistrust to hope for positive transformation. There was no Cool-Aid to drink. We face more than an economic crisis in these troubling times. We have suffered a breach of trust so deep that it feels impossible to ever collectively heal. None of us can accept this reality as our fate. So send some good vibes to the Street, and Treasury, and even AIG. While we still feel betrayed, one mind at a time, one heart at a time, one life at a time, we can give each other a reason to survive by tapping into the most basic human instinct – HOPE.

Read the full article →

Global X To List Brazil Consumer ETF

July 7, 2010

The Global X Brazil Consumer ETF will begin trading on July 8 on the New York Stock Exchange

Read the full article →

Bank Stocks RISE On Financial Reform News – But Rest Of Market Slides

June 25, 2010

NEW YORK — (TIM PARADIS, AP) The stock market fell Friday after a disappointing gross domestic product reading added to investors’ discomfort about the strength of the economic recovery. Financial shares rose on relief that a banking overhaul bill is in hand. The said GDP, the broadest measure of the economy’s health, at a 2.7 percent annual pace in the first quarter, rather than the 3 percent it previously estimated. The report follows a string of weaker-than-expected economic numbers in the past week and raised investors concerns about the recovery. Check out a chart of the S&P 500 (orange) and the KBW Bank Index (blue): Uneasiness about the GDP report tempered investors’ upbeat reaction to the financial regulation bill that lawmakers agreed on early Friday. The bill would regulate banks’ ability to trade in derivatives, but the rules are less strict than investors had feared. Derivatives are complex securities that companies and investors often use to hedge against losses. But some derivatives are purely speculative investments, and some of this type of derivatives have been blamed for contributing heavily to the collapse of the housing market and the 2008 financial crisis. One investor concern was alleviated: A plan that would have had banks paying for the costs of unwinding mortgage giants Fannie Mae and Freddie Mac, was not included in the bill that will now go to the House and Senate for final approval. “The bill could have been a lot worse,” said Alan Valdes, vice president at Hilliard Lyons in New York. “It’s a bill we can live with.” That pushed bank stocks higher: U.S. Bancorp rose 2.1 percent, while Bank of America added 1.3 percent. Some of the big Wall Street banks that will see the most changes from the bill also edged higher in part on relief of knowing what is in the legislation and in part because not all parts of the overhaul were as onerous as feared. Goldman Sachs Group Inc. rose 1 percent, while JPMorgan Chase & Co. gained 1.4 percent. In late morning trading, the Dow Jones industrial average fell 42.55, or 0.4 percent, to 10,110.25. The broader Standard & Poor’s 500 index fell 2.49, or 0.2 percent, to 1,071.20, and the Nasdaq composite index fell 4.78, or 0.2 percent, to 2,212.64. Trading was expected to be heavy and volatile because Friday is the day that stocks within the Russell indexes are being added and deleted. That forces investors to buy and sell certain stocks if they have portfolios that follow the indexes. The Russell 2000 index of smaller companies rose 3.06, or 0.5 percent, to 636.23. Treasury prices rose, driving down interest rates. The 10-year Treasury note’s yield fell to 3.10 percent from 3.14 percent late Thursday. The euro, which investors have been treating as a measure of confidence in Europe’s ability to resolve its economic problems, was down at $1.2288. Crude oil rose 86 cents to $77.37 on the New York Mercantile Exchange. Investors are cautious after the latest economic reports have cast doubt on the strength of the recovery. On Thursday, a disappointing durable goods orders report from the government and downbeat forecasts from analysts raised questions about manufacturing and consumer spending. Investors are waiting to see what news comes out of the G20 meeting being held this weekend in Toronto. The world economy, including Europe’s debt problems, will dominate the talks. President Barack Obama will be among the leaders attending the meeting. U.S. Bancorp rose 47 cents, or 2.1 percent, to $23.08, while Bank of America climbed 19 cents, or 1.3 percent, to $15.21. Goldman Sachs rose $1.38, or 1 percent, to $136.36 and JPMorgan advanced 52 cetns, or 1.4 percent, to $38.55. Four stocks rose for every three that fell on the New York Stock Exchange, where volume came to 260 million shares, compared with 267 million traded at the same point Thursday. The FTSE-100 index in London fell 0.9 percent, while Paris’ CAC-40 index fell 1 percent and Frankfurt’s DAX index lost 0.6 percent. Earlier, the Nikkei 225 index in Tokyo closed down nearly 2 percent.

Read the full article →

Vintage Wall Street Sign To Be Auctioned

June 18, 2010

NEW YORK — A vintage street sign that once marked an intersection on Wall Street near the New York Stock Exchange could attract some serious money. The enamel “Broad St.” and “Wall St.” sign will be offered at Christie’s on Tuesday. The auctioneer’s presale estimate is $60,000 to $80,000. The sign stood in front of the former headquarters of J.P. Morgan & Company. The intersection was the scene of a 1920 Wall Street bombing that killed 38 people and injured hundreds. Shrapnel marks are visible on the sign. Christie’s says the sign went up in the late 19th century and came down sometime after the bombing. It recently was shown at the Museum of American Finance.

Read the full article →

Fannie Mae, Freddie Mac Stock to Be Delisted From New York Stock Exchange

June 16, 2010

By Bill Koenig June 16 (Bloomberg) — The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to delist their common and preferred stock from the New York Stock Exchange and any other national securities exchange. When completed, Fannie’s and Freddie’s common and preferred stock is expected to be quoted on the Over–the-Counter Bulletin Board, the agency said in an e-mailed statement.

Read the full article →

Bulls on Brink as S&ampP 500 Tops 200-Day Moving Average

June 15, 2010

By Esme E. Deprez and Kelly Bit June 15 (Bloomberg) — The rally in the Standard & Poor’s 500 Index above its average level in the last 200 days captivated Wall Street for the third time in two weeks. The benchmark gauge for American equities gained 2.4 percent to 1,115.23 as of 4:07 p.m. in New York, exceeding by 6.5 points the level considered significant by investors who base trading decisions on chart patterns. The S&P 500 increased to near the 200-day mean on June 3 and May 27 before losing as much as 5 percent in the next two days. Technical levels are affecting markets in the absence of earnings news and take on more influence as traders fixate on them, said Peter Sorrentino , who helps oversee $13.3 billion at Huntington Asset Advisors in Cincinnati. The S&P 500’s failure to hold above 1,105, its intraday high the day before May’s employment report spurred a 3.4 percent plunge, was cited in the index’s drop yesterday as it erased a 1.3 percent early rally. “No one disregards technical analysis now,” said Sorrentino. “If they do so, they do so at their own peril. Technical analysis has become increasingly important because of so much money chasing around. The momentum of money has become more important than the fundamentals beneath it.” Recovery From Plunge The S&P 500 tumbled as much as 14 percent from a 19-month high on April 23 through June 7 as concern grew that Europe’s debt crisis will derail the economic recovery and BP Plc’s leaking well in the Gulf of Mexico triggered the worst oil spill in U.S. history. Equities rallied today as an 11th straight month of growth in the Federal Reserve Bank of New York’s manufacturing gauge added to evidence the economic rebound is weathering the European debt crisis. The S&P 500 has rebounded 6.2 percent since June 7, erasing its loss for 2010, as concern over European budget deficits eased and investors speculated growth in China and the U.S. will bolster the global recovery. “The bulls are slowly starting to wrestle back control,” Christopher Verrone and Nicholas Bohnsack , technical analysts at Strategas Research Partners in New York, wrote in a note to clients today. More than 50 percent of New York Stock Exchange -listed shares have risen above their 200-day moving averages, Verrone and Bohnsack said. The Dow Jones Transportation Average , Nasdaq Composite Index and Philadelphia Semiconductor Index are among benchmark gauges that have topped their 200-day moving averages in recent days. ‘It Means Something’ The S&P 500 closed below the 200-day average on May 20 for the first time since July 2009 and remained under the trend line for 16 straight sessions before today. “To the extent of people looking at this, it means something,” said Michael Shaoul , chairman of Marketfield Asset Management, who oversees $770 million and whose flagship fund beat 97 percent of peers over the last year. “It doesn’t tell you that this correction is over, but I think people would look at it as a plus and it would set up the test of the next resistance, which most people would say is at the 50-day moving average.” The S&P 500’s 50-day moving average is 1,143, about 2.5 percent above today’s level, according to Bloomberg data. To contact the reporters on this story: Esmé E. Deprez in New York at edeprez@bloomberg.net ; Kelly Bit in New York at kbit@bloomberg.net .

Read the full article →

Bulls on Brink as S&ampP 500 Makes Third Pass at 200-Day Moving-Average Level

June 15, 2010

By Esme E. Deprez and Kelly Bit June 15 (Bloomberg) — The rally in the Standard & Poor’s 500 Index above its average level in the last 200 days is captivating Wall Street for the third time in two weeks. The benchmark gauge for American equities gained as much as 2 percent to 1,111.76 as of 2:55 p.m. in New York, exceeding by 3 points the level considered significant by investors who base trading decisions on chart patterns. The S&P 500 increased to near the 200-day mean on June 3 and May 27 before losing as much as 5 percent in the next two days. Technical levels are affecting trading in the absence of earnings and economic news and take on more influence as traders fixate on them, said Peter Sorrentino , who helps oversee $13.3 billion at Huntington Asset Advisors in Cincinnati. The S&P 500’s failure to hold above 1,105, its intraday high the day before May’s employment report spurred a 3.4 percent plunge, was cited in the index’s drop yesterday as it erased a 1.3 percent early rally. “No one disregards technical analysis now,” said Sorrentino. “If they do so, they do so at their own peril. Technical analysis has become increasingly important because of so much money chasing around. The momentum of money has become more important than the fundamentals beneath it.” Recovery From Plunge The S&P 500 tumbled as much as 14 percent from a 19-month high on April 23 through June 7 as concern grew that Europe’s debt crisis will derail the economic recovery and BP Plc’s leaking well in the Gulf of Mexico triggered the worst oil spill in U.S. history. Equities rallied today as an 11th straight month of growth in the Federal Reserve Bank of New York’s manufacturing gauge added to evidence the economic rebound is weathering the European debt crisis. The S&P 500 has rebounded 5.7 percent since June 7 as concern over European budget deficits eased and investors speculated growth in China and the U.S. will bolster the global recovery. “The bulls are slowly starting to wrestle back control,” Christopher Verrone and Nicholas Bohnsack , technical analysts at Strategas Research Partners in New York, wrote in a note to clients today. More than 50 percent of New York Stock Exchange -listed shares have risen above their 200-day moving averages, Verrone and Bohnsack said. The Dow Jones Transportation Index , Nasdaq Composite Index and Philadelphia Semiconductor Index are among other benchmark gauges that have topped their 200-day moving averages in recent days. ‘It Means Something’ The S&P 500 closed below the 200-day average on May 20 for the first time since July 2009 and remained under the trend line for 16 straight sessions before today. “To the extent of people looking at this, it means something,” said Michael Shaoul , chairman of Marketfield Asset Management, who oversees $770 million and whose flagship fund beat 97 percent of peers over the last year. “It doesn’t tell you that this correction is over, but I think people would look at it as a plus and it would set up the test of the next resistance, which most people would say is at the 50-day moving average.” The S&P 500’s 50-day moving average is 1,143, about 3 percent above today’s level, according to Bloomberg data. To contact the reporters on this story: Esmé E. Deprez in New York at edeprez@bloomberg.net ; Kelly Bit in New York at kbit@bloomberg.net .

Read the full article →

Parsons Says Citigroup on `Road to Recovery,’ No Longer Has Bailout Option

June 15, 2010

By Greg Miles and Bradley Keoun June 15 (Bloomberg) — Citigroup Inc. is on the “road to recovery” and wouldn’t have access to another rescue from the government should the need arise, Chairman Richard Parsons said. “I don’t think there is the political will” for another bailout, Parsons said today at a Bloomberg Link Boards & Risk Conference in Washington. He said the New York-based company has no need for more aid from the U.S. Citigroup posted a $4.25 billion profit for the first quarter after recording $27 billion of losses in 2008 and 2009 that prompted a $45 billion government rescue. The $700 billion Troubled Asset Relief Program to stabilize the nation’s banking system prompted calls for legislation that would prohibit such government intervention in the future and impose restrictions on the types of businesses large financial institutions could own. Parsons said he doesn’t think the government should break up large banks such as Citigroup because “the marketplace requires institutions like ours” to serve global companies with operations in more than 50 countries. “Trying to bomb everybody back to the stone age, is the way I call it, trying to make everybody go back to being a community bank so that you’re not systemically important would be counterproductive, would be from a U.S. perspective shooting ourselves in the foot in terms of global competition ,” Parsons said. Board Rotation Parsons, 62, who took over as Citigroup’s chairman in February 2009, said he “basically” agrees with former Citigroup director John Deutch ’s comments last year that all of the directors who served before the bank’s bailout should rotate off in an “orderly fashion.” Parsons said he told new Citigroup directors that he would stay at the bank “at least until we got the ship off the sandbar and back out to deep water.” He declined to estimate when that might happen. “I think the ship is lifting off the sandbar,” he said. In December Citigroup repaid $20 billion of the bailout funds, and the government is now selling its remaining 21 percent stake in the lender. The bank’s share price rose 7 cents to $3.95 as of 1:17 p.m. in New York Stock Exchange composite trading. To contact the reporters on this story: Greg Miles in Washington at gmiles1@bloomberg.net ; Bradley Keoun in New York at bkeoun@bloomberg.net

Read the full article →

Parsons Says Citigroup on `Road to Recovery,’ No Longer Has Bailout Option

June 15, 2010

By Greg Miles and Bradley Keoun June 15 (Bloomberg) — Citigroup Inc. is on the “road to recovery” and wouldn’t have access to another rescue from the government should the need arise, Chairman Richard Parsons said. “I don’t think there is the political will” for another bailout, Parsons said today at a Bloomberg Link Boards & Risk Conference in Washington. He said the New York-based company has no need for more aid from the U.S. Citigroup posted a $4.25 billion profit for the first quarter after recording $27 billion of losses in 2008 and 2009 that prompted a $45 billion government rescue. The $700 billion Troubled Asset Relief Program to stabilize the nation’s banking system prompted calls for legislation that would prohibit such government intervention in the future and impose restrictions on the types of businesses large financial institutions could own. Parsons said he doesn’t think the government should break up large banks such as Citigroup because “the marketplace requires institutions like ours” to serve global companies with operations in more than 50 countries. “Trying to bomb everybody back to the stone age, is the way I call it, trying to make everybody go back to being a community bank so that you’re not systemically important would be counterproductive, would be from a U.S. perspective shooting ourselves in the foot in terms of global competition ,” Parsons said. Board Rotation Parsons, 62, who took over as Citigroup’s chairman in February 2009, said he “basically” agrees with former Citigroup director John Deutch ’s comments last year that all of the directors who served before the bank’s bailout should rotate off in an “orderly fashion.” Parsons said he told new Citigroup directors that he would stay at the bank “at least until we got the ship off the sandbar and back out to deep water.” He declined to estimate when that might happen. “I think the ship is lifting off the sandbar,” he said. In December Citigroup repaid $20 billion of the bailout funds, and the government is now selling its remaining 21 percent stake in the lender. The bank’s share price rose 7 cents to $3.95 as of 1:17 p.m. in New York Stock Exchange composite trading. To contact the reporters on this story: Greg Miles in Washington at gmiles1@bloomberg.net ; Bradley Keoun in New York at bkeoun@bloomberg.net

Read the full article →

Rally in Natural Gas Boosts Coal’s Allure for Power Plants Energy Markets

June 14, 2010

By Moming Zhou and Mario Parker June 15 (Bloomberg) — The 16 percent jump in natural gas prices in the past month may prompt U.S. power producers to move to coal, as rising temperatures boost air-conditioning demand. Gas surpassed $5 per million British thermal units yesterday in New York for first time in 16 weeks, as Commodity Weather Group, a forecaster based in Bethesda, Maryland, said the hottest areas over the next two weeks will be the Midwest, South and Mid-Atlantic. The price of coal is about $4.58 per million Btu, according to Teri Viswanath , director of commodities research at Credit Suisse Securities USA in Houston. A switch to coal would reduce demand for gas just as power producers enter the busiest season. Gas became cheaper than coal in March, when prices dropped to a six-month low. “Look at the prices and it’s clear that coal will recapture the market share,” said Viswanath, whose coal-price model factors in transportation costs and power-plant efficiency. “It will provide a ceiling for gas prices.” Natural gas for July delivery rose 22.5 cents, or 4.7 percent, to settle at $5.006 per million Btu yesterday on the New York Mercantile Exchange, the highest settlement price since Feb. 19. Gas has been the biggest gainer in the S&P GSCI Index of commodities in the past month. As gas rallied, coal dropped about 1.2 percent. Central Appalachian coal for July delivery fell 35 cents, or 0.6 percent, to $61.82 per ton June 11 on the Nymex. “At $5, no utilities are going to burn gas when they can burn coal,” said Meredith Bandy , an analyst at BMO Capital Inc. in Denver. About 10 percent of power plants, mostly in the Southeastern U.S., can switch between the two fuels, she said. Stronger Demand Demand for gas in April and May was about 11 percent higher than during the same period of 2009 as costs declined, the Energy Department said in its monthly Short-Term Energy Outlook on June 8. Coal averaged $58.47 a ton in April, equal to about $4.38 per million Btu, and the equivalent of $4.58 in May, using Viswanath’s model. Gas futures in New York averaged $4.084 in April and $4.154 in May after falling to $3.842 per million Btu on March 29, the lowest settlement price since Sept. 28, 2009. Stockpiles of coal at utilities dropped 0.4 percent in the week ended June 7 and 5.3 percent from a year earlier, according to an analysis by Genscape Inc. of Louisville, Kentucky. Coal demand fell about 40 million tons last year and should rise about 20 million tons of that consumption back this year, according to estimates by Pearce Hammond , an analyst at Simmons & Co. International Ltd. in Houston. No Oversupply “Utility inventories are higher than normal but I don’t think we’re in an oversupplied market,” Hammond said. “With natural gas at these prices, coal should jump in front of gas.” About 45 percent of U.S. electricity output this year will come from coal plants and 22 percent from gas power facilities, according to the Energy Department. Eastern coal producers closest to power plants with the ability to switch between coal and gas will benefit the most from stronger utility demand, Hammond said. Hammond said Alpha Natural Resources Inc. , the third- largest U.S. coal producer, will be among those to gain. The Abingdon, Virginia-based company has fallen 15 percent this year to $36.76 in New York Stock Exchange composite trading. Patriot Coal Corp. in St. Louis, the fourth-largest eastern U.S. coal producer, which has risen 9 percent this year, and James River Coal Co. , a Richmond, Virginia-based coal company, which is down 8 percent, may also benefit, Hammond said. Gas prices at the Henry Hub in Erath, Louisiana, where New York futures contracts are delivered, will average $4.49 per million Btu in 2010 and $5.06 in 2011, the department estimated in the monthly outlook. Gas at the hub yesterday traded at $4.9389, the highest price since Feb. 19, according to data compiled by Bloomberg. “We’ve had a significant percentage increase in natural gas and certainly we are going to start to hear squealing that gas is getting a little dear at this time,” said Stephen Schork , president of Schork Group Inc., a consulting company in Villanova, Pennsylvania. To contact the reporters on this story: Moming Zhou in New York at Mzhou29@bloomberg.net ; Mario Parker in Chicago at mparker22@bloomberg.net ;

Read the full article →

Caterpillar Says Australia’s Proposed 40% Mining Tax May Hurt Its Profits

June 14, 2010

By Shruti Date Singh June 14 (Bloomberg) — Caterpillar Inc. , the world’s largest maker of construction equipment, said Australia’s proposed 40 percent tax on mining profits may hurt the company’s sales in the country. “Along with our dealers and customers in the region, we are concerned about the potential impact the proposed change in tax policy will have on the manufacturing of mining equipment and our sales in Australia,” Caterpillar spokeswoman Kate Kenny said in an e-mailed response to questions from Bloomberg News. BHP Billiton Ltd., the world’s largest mining company, Xstrata Plc, Rio Tinto Group and Peabody Energy Corp. have said they are reviewing, suspending or slowing Australian projects as a result of the so-called super-profit tax on mining companies. The country is the biggest exporter of iron ore and coal. Caterpillar hasn’t had any order cancellations or delays, Kenny said. The Peoria, Illinois-based manufacturer “opposes any significant tax increases that will impact the viability of future mining investment in Australia and threatens the company’s long-term competitiveness,” she said. Xstrata earlier this month said it shelved spending on projects valued at A$6.6 billion ($5.6 billion) in Australia. The proposed levy would be imposed on resource companies’ returns that exceed the rate on long-term Australian government bonds, now about 6 percent, and be offset by a credit for royalties paid to states, according to government documents. Prime Minister Kevin Rudd, under pressure to water down the plan, may raise the tax threshold to more than 10 percent from 6 percent, the Herald Sun newspaper reported June 11. Earnings Forecast Caterpillar raised its 2010 earnings forecast in April on growth in emerging countries, energy markets and strong order rates for mining. The company said it planned to increase production capacity for large mining trucks because some models were sold out for 2010 and some customers said they were accelerating expansion plans and new mine development. Caterpillar rose 77 cents, or 1.3 percent, to $61 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 7 percent this year. To contact the reporter on this story: Shruti Singh in Chicago at ssingh28@bloomberg.net

Read the full article →

Cablevision Agrees to Purchase Bresnan Communications for $1.36 Billion

June 13, 2010

By Matthew Boyle and Serena Saitto June 13 (Bloomberg) — Cablevision Systems Corp. , the fifth-largest U.S. cable operator, is said to be near the purchase of Bresnan Communications Co. for about $1.3 billion, people close to the negotiations said. Bresnan, based in Purchase, New York, provides broadband-communication services in Montana, Wyoming, Colorado and Utah and is 30 percent-owned by Comcast Corp. Private-equity firm Providence Equity Partners Inc. has sought to sell the company for more than $1 billion including debt, two people with knowledge of the matter told Bloomberg News earlier this month. Acquiring Bresnan would give Cablevision a bigger slice of the burgeoning market for high-speed Internet services, where revenue is expected to rise to $210 billion globally in 2014 from $164 billion in 2009, according to ABI Research in Oyster Bay, New York. Cablevision spokeswoman Kim Kerns and Providence spokesman Andrew Cole weren’t immediately available for comment outside of business hours. Cablevision sought Bresnan’s properties because the broadband provider doesn’t compete with phone operators AT&T Inc. and Verizon Communications Inc. in the areas it operates, said David Joyce , an analyst with Miller Tabak & Co. in New York. Cablevision was among a group of bidders that included Suddenlink Communications in St. Louis, Ascent Media Corp. in Englewood, Colorado, and at least one private-equity firm, according to people with knowledge of the matter. John Malone , chairman of Liberty Media LLC, owns 30.3 percent of the voting shares of Ascent Media. Cablevision, based in Bethpage, New York, rose 3 cents to $23.40 in New York Stock Exchange composite trading on June 11. The stock has gained 9.8 percent year to date. To contact the reporter on this story: Matthew Boyle in New York at Mboyle20@bloomberg.net

Read the full article →

Novartis Drug Backed by Panel as First Pill to Treat Multiple Sclerosis

June 10, 2010

By Catherine Larkin June 10 (Bloomberg) — Novartis AG won a U.S. panel’s backing to introduce the first pill to treat multiple sclerosis as an alternative to injectable drugs led by Biogen Idec Inc. ’s Avonex and Teva Pharmaceutical Industries Ltd. ’s Copaxone. Novartis’s Gilenia should be “generally recommended” as an initial treatment for MS, not just when other drugs fail, outside advisers to the Food and Drug Administration said in a 21-3 vote today in Silver Spring, Maryland. The panel voted unanimously in favor of the pill’s safety and effectiveness, while saying a lower dose should be tested after approval. The Swiss drugmaker has been in a race with Merck KGaA to sell the first pill to delay progression of MS. The neurological disease affects 2.5 million people worldwide, many of whom have trouble sticking with current therapies because they’re difficult to use or have side effects, according to the National Multiple Sclerosis Society , a New York-based patient group. “This is an enormously effective drug,” said Cynthia Sitcov, the panel’s patient representative. “I hope the agency approves it at the current dose.” The panel voted 20-5 in favor of a new study testing a 0.25 milligram Gilenia pill once a day, which the FDA suggested may be “much safer” than the 0.5 milligram proposed daily dose, which was linked to heart, lung and liver risks and infections in studies. The panel voted unanimously that the study can wait until after the drug is on the market. Novartis said testing a lower dose would take 2,000 patients and five to six years. Shares Rise American depositary receipts of Novartis, each representing one ordinary share, rose $1.52, or 3.3 percent, to $47.45 at 4 p.m. in New York Stock Exchange composite trading . The Basel, Switzerland-based company’s ADRs have declined 13 percent so far this year in New York trading. The FDA usually follows its panels’ recommendations, though it isn’t required to do so. The agency is scheduled to decide whether to approve Gilenia by September. The review, initially set for six months, was delayed three months when Novartis said May 25 that the FDA requested additional analysis of current data. The advisers also recommended that the first dose of the drug be taken under a doctor’s supervision to identify heart rhythm changes linked to starting treatment and suggested that additional testing may be needed to monitor potential eye and lung risks. Les Funtleyder , a health-care strategist at Miller Tabak & Co. in New York, said before the meeting that he expected the drug to become a first-choice option for doctors, also called first-line therapy, with peak sales topping $1 billion a year. ‘Big Advance’ “This will be used in first line eventually,” he said yesterday in a telephone interview. “It’s such a big advance to go to oral from injectable.” Merck, of Darmstadt, Germany, said this week that it had resubmitted its application to sell cladribine tablets as a treatment for MS. The FDA initially rejected Merck’s submission in November, saying it was incomplete. Multiple sclerosis causes the body to attack nerve cells through the immune system. Gilenia and cladribine blunt the attack by targeting white blood cells that harm the protective coating of nerve cells. Cladribine was approved more than a decade ago to fight leukemia. Mitsubishi Tanabe Pharma Corp. , of Osaka, sold rights to Gilenia to Novartis in 1997 and will help the company develop the drug in Japan. Biogen Idec said older treatments such as its Avonex and Tysabri shouldn’t be scrapped if Gilenia, chemically known as fingolimod, is cleared for sale. “While there is a desire among the MS community for the convenience of an oral treatment, it is important for patients and physicians to consider efficacy, safety and long-term experience before choosing any therapy,” the Cambridge, Massachusetts-based company said today in an e-mailed statement. “The safety profile of fingolimod has yet to be established in a larger number of patients in the real-world setting.” To contact the reporter on this story: Catherine Larkin in Silver Spring, Maryland, at clarkin4@bloomberg.net .

Read the full article →

SEC Approves Five-Minute Trading Halts for S&ampP 500 Companies That Move 10%

June 10, 2010

By Nina Mehta June 10 (Bloomberg) — The U.S. Securities and Exchange Commission approved rules that will halt trading in Standard & Poor’s 500 Index stocks during periods of volatility, a response to the May 6 plunge that wiped out $862 billion in 20 minutes. The circuit-breaker test, scheduled to last through Dec. 10, will pause trading for five minutes when a company rises or falls 10 percent in five minutes or less. The SEC said in an e- mailed statement that trading venues and the Financial Industry Regulatory Authority will begin implementing the curbs tomorrow. The regulator delayed the start of the pilot program last week. Halts “will help reduce the likelihood of this type of unusual trading activity from recurring,” SEC Chairman Mary Schapiro said on June 2. The circuit breakers have been agreed to by executives from the New York Stock Exchange, Nasdaq Stock Market and other venues. The SEC has posted more than 25 letters commenting on the plan on its website. Investors and a former chief economist at the agency said regulators should guard against a repeat of the May 6 selloff by imposing limits on how far shares can fall instead of halting trading. Hudson River Trading LLC , Quantlab Financial LLC, Credit Suisse Group AG and Lawrence Harris said in letters that the circuit breakers approved today by the SEC risk making equity plunges worse. They recommended a system used on futures markets such as the Chicago Mercantile Exchange that subject rapidly falling securities to what are known as limit-down restrictions. “Halts will attenuate volatility if liquidity or rationality arrives before markets return to operation,” wrote Harris, now a finance professor at the University of Southern California in Los Angeles. “Allowing markets to reverse as soon as they are ready to do so is optimal because such reversals restore confidence.” Schapiro, NYSE, Nasdaq A limit-down rule preventing executions below a certain level may “minimize the costs associated with interrupting continuous trading and denying market participants a continuous flow of market data during critical time periods,” New York- based Hudson River and Quantlab in Houston told the SEC yesterday. Executives at Chicago-based Allston Trading LLC and RGM Advisors LLC in Austin, Texas, also signed the letter. The firms are automated trading companies. Creating price boundaries during times of volatility would prevent transactions from occurring “outside of the acceptable range, and ‘clearly erroneous’ trades would become a thing of the past,” Dan Mathisson , the New York-based head of the Advanced Execution Services unit at Credit Suisse, told the SEC in a June 3 letter . Such rules “have been effective in curtailing severe errors or market dislocations” in futures trading, he said. To contact the reporter on this story: Nina Mehta in New York at nmehta24@bloomberg.net .

Read the full article →

BP Default Risk Climbs to Record After Increased Estimate of Leak’s Size

June 9, 2010

By John Detrixhe June 9 (Bloomberg) — The cost to protect against a default on BP Plc debt soared to a record and the energy company’s bond prices plummeted after an estimate its damaged well is seeping more oil than previously calculated. Shares fell to the lowest since 1996. Credit-default swaps on BP debt rose 126.8 basis points to an unprecedented 387.6 basis points, according to CMA DataVision. The company’s $3 billion of 5.25 percent notes due in 2013 fell to a record low 91 cents, raising the relative yield to 7.18 percentage points, compared with 7.27 percentage points on the average junk bond as of yesterday. “The piece of news that seems to have broken the camel’s back was an increase of estimated spill volumes,” said Guy Lebas , chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. BP’s securities were hammered after Ian MacDonald, an oceanographer at Florida State University in Tallahassee estimated the well is leaking 26,500 barrels to 30,000 barrels a day into the Gulf of Mexico, six times more than the figure used by BP and the government from April 28 to May 27. BP’s American depositary receipts fell $5.48, or 15.8 percent, to $29.20, in New York Stock Exchange Composite trading. President Barack Obama said yesterday that he would have fired BP Chief Executive Officer Tony Hayward for saying that he wanted to end the leak because he wanted “his life back.” Obama said he has made three trips to the Gulf to find out who to hold responsible, “so I know whose ass to kick.” Lawmakers led by Representative Peter Welch , a Vermont Democrat, wrote to Hayward urging him to stop paying dividends and cancel an advertising campaign in the U.S. until the cleanup is complete. ‘Flak From Politicians’ “They’re getting a lot of flak from politicians, and that’s raising concerns about the dividend,” said Peter Hitchens , an analyst at Panmure Gordon & Co. in London. “Operationally, they seem to have turned the corner.” The BP notes fell 7 cents to a yield of 8.34 percent as of 4:18 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That compares with 9.44 percent for high-yield, high risk corporate debt as of June 8, according to Bank of America Merrill Lynch index data. The BP debt is rated Aa2 by Moody’s Investor’s Service and AA- by Standard & Poor’s. Junk bonds are rated below Baa3 by Moody’s and lower than BBB- by S&P. ‘Underweight’ Energy Investors should be “underweight” the oil and gas sector, a change from “marketweight,” Lebas wrote in a June 7 report. BP, The Woodlands, Texas-based Anadarko and Vernier, Switzerland-based Transocean bonds have been “punished” because they are the most exposed to the liability from the spill, he wrote. Anadarko’s $1.75 billion of 6.45 percent bonds due in 2036 fell 5.75 cents to 76.5 cents for a yield of 4.63 percentage points more than similar-maturity Treasuries, Trace data show. Credit-default swaps on Anadarko debt increased 152 basis points to 589.7 basis points. Anadarko fell $7.97, or 18.6 percent, to $34.83 in New York Stock Exchange Composite trading, the lowest since March 2009. Transocean’s $1 billion of 6.8 percent securities due in 2038 dropped 3 cents to 82 cents, for a spread of 4.39 percentage points, and credit-default swaps on its debt rose 126.8 basis points to 533.3 basis points. Its stock dropped $3.75, or 8.1 percent, to $42.58, the lowest since December 2008. Relief Wells BP is drilling relief wells to end the leak, with completion set for August, Lebas wrote. Even with assurances from the company and public officials, the damaged well may continue to discharge into the Gulf, he wrote. Max McGahan, a BP spokesman, declined to comment. Officials from Transocean and Anadarko couldn’t immediately be reached for comment. Volatility in BP bonds may have been exacerbated by traders unwinding credit-derivatives strategies linked to the company, Tim Backshall , the chief strategist at Credit Derivatives Research LLC in Walnut Creek, California, wrote in an e-mail. Credit swaps pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt. To contact the reporter on this story: John Detrixhe in New York at jdetrixhe1@bloomberg.net

Read the full article →

Goldman Sachs Documents Subpoenaed by U.S. Financial-Crisis Investigators

June 7, 2010

By Jesse Westbrook June 7 (Bloomberg) — The U.S. panel investigating the causes of the financial crisis issued a subpoena to Goldman Sachs Group Inc. after the Wall Street firm failed to hand over documents in a “timely manner.” The Financial Crisis Inquiry Commission “has made it clear that it is committed to using its subpoena power” if firms under review don’t comply with information requests, the panel said in a statement today. Moody’s Corp. and Berkshire Hathaway Inc. Chief Executive Officer Warren Buffett were previously subpoenaed by the commission. The request for information shows the FCIC is turning attention to the most profitable firm in Wall Street history after investigating credit-rating companies and banks such as Citigroup Inc. and Bear Stearns Cos. Goldman Sachs has already drawn scrutiny from regulators and lawmakers for packaging mortgages into securities that triggered losses for investors when the housing market collapsed in 2007. “We have been and continue to be committed to providing the FCIC with the information they have requested,” Goldman Sachs said in an e-mailed statement. Goldman Sachs fell $1.31, or 1 percent, to $140.94 at 11:24 a.m. in New York Stock Exchange composite trading. The Securities and Exchange Commission sued New York-based Goldman Sachs April 16, accusing the firm of selling a collateralized debt obligation tied to mortgages without disclosing to investors that hedge fund Paulson & Co. helped pick the underlying securities. Paulson was betting the CDO would fail, the SEC said. Goldman Sachs has said the suit is “unfounded in law and fact.” Federal prosecutors in New York are also investigating transactions by Goldman Sachs to determine whether to bring charges, people familiar with the matter said April 29. The firm hasn’t been accused of criminal misconduct. To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net .

Read the full article →

← Previous Entries

FREE LOAN CONSULTATION
Bryan Shaffer \| 310-867-2906
(bshaffer@gspartners.com)	Loan Consultation Form
Commercial Real Estate & Multi-Family Loans - Both Debt & Equity - California & Nationwide
Retail - Office - Industrial - Hotels - Multi-Family - Student Housing - Single Tenant SBA Loans
Distressed REO Properties - Whole Loans
www.gspartners.com
California Real Estate Brokers License: 01073455

Disclaimer: This website is a information source only. We do not provide investment advice. Any information obtained, should be viewed as the opinions of the Author/Presenter

and it is always recommended to perform independent due diligence before making any investments or using any strategy. The Various trademarks held by their respective owners.

Bryan Shaffer - All Rights Reserved: © 2005-2011 - Terms & Conditions - Privacy Policy

For More Information about Banks, FDIC, TARP and US Government Distressed Asset Programs go to www.FDIC.gov

If you are a home owner who needs foreclosure help, go to www.makinghomeaffordable.gov