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Is it Love or Just Linfatuation?: The Ticker | By Rick Moranis | 2012-02-17T19:50:46Z | http://www.bloomberg.com/news/2012-02-17/is-it-love-or-just-linfatuation-the-ticker.html | 2 | 17 | a14f026110802dfd37f6df1a9df1dee56386e1c2 | When a city’s lingua franca is linfected with linvention,
It might be time for punsters to linvite a lintervention. In Gardens where lines are painted and liniments have no limits,
And Spike Leen’s often inbound taunting visitors with gimmicks, A team that lin extremis and linestimably bad,
Corporate boxes left unwrapped and empty floor seats to be had, Even Knicks linherit missing links and linertia once disabled,
Can lingratiate linfamously lintractable deals in Cable. So as Taipei personalities now linflate the price of seats,
I linvested in a laptop to stream this Linchpin’s feats. But last Tuesday, linconsolable, lincognito I snuck in,
To Westminster’s annual canine fest disguised as Lin Tin Tin. I lingered long past Best goodbyes, and found a linterim space,
To somehow stay linconspicuous while security linspected the place. Sustaining my lincursion through a lincalculably lonely night,
My lincentives again lincurable in game day’s lincendiary delight. Linsatiably, I watched, as this lintrepid from the Ivy,
Made the thunder in the building lincomparably come alivy. But lintuitively I’ll stay linfatuated. Who knows where life is fated?
Not every Dolan knows what cardinal is. Let’s see if this guy’s traded! (Rick Moranis is a writer and actor who lives in New York City . The opinions expressed are his own.) For more quick commentary from Bloomberg View, go to the Ticker . | 2012 | is-it-love-or-just-linfatuation-the-ticker |
Gasoline Futures Decline as Brent Retreats, Consumer Prices Rise | By Ksenia Galouchko | 2012-02-17T18:58:30Z | http://www.bloomberg.com/news/2012-02-17/gasoline-futures-decline-as-brent-retreats-consumer-prices-rise.html | 2 | 17 | 7e0b5c72dfeee274aabcf780468f5936c57eb485 | Gasoline fell for the first time in
three days as Brent crude slipped and a rise in U.S. consumer
prices boosted concern that demand for the fuel may decline. Futures retreated as Brent sank 0.5 percent in London ,
lowering the cost to produce fuel in Europe, a key source of
U.S. imports. Prices also dropped as the consumer-price index
increased 0.2 percent, the Labor Department reported today in
Washington . “It’s following Brent to a great degree,” John Kilduff , a
partner at Again Capital LLC, a New York-based hedge fund that
focuses on energy, said by phone. March-delivery gasoline fell 2.9 cents, or 1 percent, to
$3.0181 a gallon at 1:47 p.m. on the New York Mercantile
Exchange after touching $3.0021. Futures have gained 12 percent
this year. Brent crude for April settlement dropped 59 cents to
$119.52 a barrel at 1:48 p.m. on the ICE Futures Europe
exchange. Consumer prices rose after no change the prior month.
Economists surveyed by Bloomberg forecast a 0.3 percent gain.
During the past 12 months, prices climbed 2.9 percent, the
smallest year-over-year advance since March 2011. U.S. gasoline demand last week was the lowest level for
this time of year in weekly data since 2003, Energy Department
data show. Consumption over the past four weeks was 6.4 percent
below a year earlier. Demand Down “Demand-wise we’re down and supply doesn’t appear to be
under any kind of jeopardy of being tight,” Kilduff said. Regular gasoline at the pump, averaged nationwide, rose 0.6
cent to $3.529 yesterday, according to AAA data. Prices were 12
percent higher than a year earlier. “High gasoline prices are going to put a crimp in growth
at some point, but it’s not going to stop growth,” Carl Larry,
president of the New York City-based Oil Outlooks & Opinions
LLC, said by phone. “We are going to get used to this, we are
going to change our driving patterns. It’s not going to slow the
path of recovery.” Heating oil for March delivery fell 2.39 cents, or 0.7
percent, to $3.1858 a gallon on the exchange. Futures have
advanced 8.6 percent this year. To contact the reporter on this story:
Ksenia Galouchko in New York at
kgalouchko1@bloomberg.net To contact the editor responsible for this story:
Dan Stets at
dstets@bloomberg.net . | 2012 | gasoline-futures-decline-as-brent-retreats-consumer-prices-rise |
Commercial Papers Reported: India Money Markets | By Shraddha Kothari | 2012-02-17T12:41:30Z | http://www.bloomberg.com/news/2012-02-17/commercial-papers-reported-india-money-markets.html | 2 | 17 | b91cf5bdc4522f8709b257f81d7eb16105746659 | Following is a table showing commercial papers
reported by Companies. The data has been provided by the Fixed Income Money
Market & Derivatives Association of India .
Contributed via: Bloomberg Publisher WEB Service Provider ID: 2ec28d5e5e6c4e8b927b3be1ed091b76 | 2012 | commercial-papers-reported-india-money-markets |
Asia Currencies Gain as Greece, Improved U.S. Economic Data Buoys Optimism | By Yumi Teso | 2012-02-17T21:25:51Z | http://www.bloomberg.com/news/2012-02-17/asian-currencies-rebound-from-weekly-drop-on-greece-u-s-data.html | 2 | 17 | 9a2a9514c99c4174b55edad543a2c868 | Asian currencies gained yesterday,
rebounding from a decline earlier in the week, as improved U.S.
economic data and optimism Greece will secure a second bailout
buoyed demand for emerging-market assets. The Bloomberg-JPMorgan Asia Dollar Index (ADXY) rose 0.1 percent
in the week as a report showed jobless claims in the world’s
largest economy fell to a four-year low. European governments
are considering steps including interest-rate cuts on emergency
loans to Greece as part of a rescue package, two people familiar
with the talks said on Feb. 16. The gauge for regional
currencies lost as much as 0.3 percent earlier in the week after
euro-area finance ministers delayed a decision on the second
bailout for Athens . “The Greek situation was fragile earlier this week and
that gave investors selling opportunities,” said Shigehisa Shiroki, chief trader on the Asian and emerging-markets team at
Mizuho Corporate Bank Ltd. in Tokyo . “Ultimately, Europe won’t
let Greece default and will probably provide a second bailout.
Funds will continue to flow into Asia and regional currencies
will remain on a gradual appreciation trend.” Malaysia’s ringgit jumped 0.8 percent yesterday to 3.0363
per dollar, erasing the week’s losses, according to data
compiled by Bloomberg. The South Korean won climbed 0.6 percent
yesterday to 1,125.50 and Indonesia ’s rupiah rose 0.5 percent to
9,046, both trimming the week’s losses to 0.2 percent. Wrangling among euro-area finance ministers on a Feb. 15
conference call over how to reduce Greece’s debt load and
tighten control of the aid raised the prospect of a two-step
process, according to two people familiar with the talks. In
that scenario, the ministers’ Feb. 20 gathering in Brussels
would be limited to kicking off the bond exchange and deferring
decision on the rest of the bailout funds. U.S. Data The won climbed the most in more than two weeks yesterday
after official data showed on Feb. 16 that Americans filed the
fewest claims for jobless benefits since March 2008 in the week
ended Feb. 11, while housing starts rose in January at a faster
pace than economists expected. “Interpretations about the Greek situation have changed
again to a more positive view, and improved data in the U.S. are
also supporting sentiment,” said Hwang Sun Min, a Seoul-based
currency dealer at Kookmin Bank. “Investors may refrain from
taking strong positions at the end of the week.” The ringgit dropped for a second week after data on Feb. 15
showed economic growth last year slowed to 5.1 percent from 7.2
percent in 2010. Singapore reported the following day its
economy shrank an annualized 2.5 percent in the fourth quarter
of 2011 from the previous three months, less than an initial
estimate of a 4.9 percent decline. The island-state is
Malaysia ’s second-largest export market. Elsewhere, the Philippine peso weakened 0.3 percent this
week to 42.628 per dollar, Taiwan’s dollar declined 0.1 percent
to NT$29.583 and China ’s yuan ended little changed at 6.2991,
according to data compiled by Bloomberg. Thailand ’s baht added
0.2 percent from a week ago to 30.78 and India ’s rupee climbed
0.3 percent to 49.275. To contact the reporter on this story:
Yumi Teso in Bangkok at
yteso1@bloomberg.net To contact the editor responsible for this story:
James Regan at
jregan19@bloomberg.net | 2012 | asian-currencies-rebound-from-weekly-drop-on-greece-u-s-data |
Avon Names a New Head of China Operations Amid Bribery Probe | By Lauren Coleman-Lochner | 2012-02-17T21:09:56Z | http://www.bloomberg.com/news/2012-02-17/avon-names-a-new-head-of-china-operations-amid-bribery-probe.html | 2 | 17 | de6fec7ad787b3d1600028c678370e9f57df2159 | Avon Products Inc. (AVP) , in the midst of
investigations into alleged overseas bribery, named John Lin to
run its China unit. Lin currently heads operations in Canada, Jennifer Vargas,
a company spokeswoman, said today in an e-mail. The appointment comes as Avon searches for a replacement
for Chief Executive Officer Andrea Jung , who will remain
chairman at the New York-based company. Avon is the subject of a U.S. grand jury investigation into
whether ex-employees in China bribed officials, in violation of
U.S. anti-corruption laws, according to a person familiar with
the matter. In regulatory filings last year, Avon disclosed the
firing of four executives suspected of paying bribes to
officials in China. Last month Avon said Charles Cramb, vice chairman of its
developed market group, left the company amid the internal
investigation into bribery. Cramb, who was previously chief
financial officer, departed on Jan. 29, Avon said in a filing. The world’s largest door-to-door cosmetics seller is
seeking cost reductions and ways to boost sales as it faces
heightened competition from larger cosmetics makers such as
Procter & Gamble Co. (PG) The Wall Street Journal earlier reported Lin’s appointment. Avon fell 2.2 percent to $19.19 at the close in New York .
The shares tumbled 40 percent last year. To contact the reporter on this story:
Lauren Coleman-Lochner in New York at
llochner@bloomberg.net To contact the editor responsible for this story:
Robin Ajello at
rajello@bloomberg.net | 2012 | avon-names-a-new-head-of-china-operations-amid-bribery-probe |
Van Gogh Work Trails Estimate at $1.2 Million India Art Auction | By Pratish Narayanan | 2012-02-17T12:06:41Z | http://www.bloomberg.com/news/2012-02-17/vincent-van-gogh-landscape-trails-estimate-at-1-2-million-india-art-sale.html | 2 | 17 | 37325b0106d1408911597835ca609372fe5b8df6 | The first auction of western art in
India by a Mumbai-based company fetched $1.2 million, trailing
forecasts, as fewer than half the works found buyers and a
Vincent Van Gogh painting sold below its estimated price. “L’Allee aux deux promeneurs” (Lane With Two Figures), an
early landscape by the largely self-taught artist, sold for
$697,000, failing to meet an estimate of $800,000 to $1 million.
Van Gogh painted it in 1885 in the Dutch village of Neunen where
he was living, according to Saffronart auction house. The sale, featuring works by Pablo Picasso , Henri Matisse
and Salvador Dali , was forecast to raise $3.3 million to $4.2
million. It managed only 36 percent of the low estimate, as 41
of the 73 works on the block went unsold, according to the
auction house’s website . The lower-than-expected price for the impressionist and
modern pieces in India contrasts with demand for Indian works in
auctions last year across the world. Paintings by Tyeb Mehta,
Jehangir Sabavala and Syed Haider Raza sold for more than their
estimates at auctions by Saffronart, Sotheby’s (BID) and Christie’s
International in September, when buyers paid a total of $14
million for Indian art over two weeks. Saffronart’s latest auction featured largely minor works by
western artists just as India’s government predicted the weakest
economic expansion this year since 2009, potentially damping
demand. While museum-quality works are fetching higher prices,
more routine pieces may struggle to sell at a time when an
increasing number of investment-minded buyers are migrating to
the more fashionable market for contemporary art, dealers said. All three Dali works found buyers, with two beating their
top estimates. A drawing, sculpture and lithograph by the
Surrealist artist fetched a total of $65,880. Buyers paid a
total of $74,160 for five works by Picasso, according to
Saffronart’s website. There were 12 pieces on sale by the
Spanish artist, the world auction market’s No. 4 earner in 2011. To contact the reporter on this story:
Pratish Narayanan in Mumbai at
pnarayanan9@bloomberg.net To contact the editor responsible for this story:
Manuela Hoelterhoff at
mhoelterhoff@bloomberg.net . | 2012 | vincent-van-gogh-landscape-trails-estimate-at-1-2-million-india-art-sale |
Implied Stock-Price Moves for U.S. Companies Reporting Results | By Wendy Soong | 2012-02-17T13:10:44Z | http://www.bloomberg.com/news/2012-02-17/implied-stock-price-moves-for-u-s-companies-reporting-results.html | 2 | 17 | 117b01c0ef973a8e4c2576405cc24e0deda78dee | The following table shows the
expected stock-price move for U.S. companies about to release
quarterly results, according to options data compiled by Bloomberg.
Criteria are listed below the table. To contact the reporter on this story:
Wendy Soong in New York at at csoong@Bloomberg.net . To contact the editor responsible for this story:
Alex Tanzi at at
atanzi@Bloomberg.net | 2012 | implied-stock-price-moves-for-u-s-companies-reporting-results |
Russia to Complete Privatization Review by May, Nabiullina Says | By Ilya Arkhipov | 2012-02-17T07:00:08Z | http://www.bloomberg.com/news/2012-02-17/russia-to-complete-privatization-review-by-may-nabiullina-says.html | 2 | 17 | 3164cf7a4d398fb4c5d05af7a4baddea25dfb3b8 | Russia’s government will complete a
review of its privatization strategy before a new president
takes office in May, Economy Minister Elvira Nabiullina said. There’s no reason to delay the planned sale this year of
stakes in shipper OAO Sovcomflot, Nabiullina told reporters on
an airplane between Moscow and Novosibirsk late yesterday.
Deputy Prime Minister Igor Sechin called for delays to the
schedule of state asset sales that involve the energy industry ,
the Kommersant newspaper reported last month. Outgoing President Dmitry Medvedev promised to relinquish
government control of some of the biggest state companies at the
St. Petersburg International Economic Forum last June, saying it
was time to reverse the policy of strengthening the state’s
presence. Putin, who’s seeking to reclaim the presidency in
elections next month after Medvedev agreed to step aside,
pledged Jan. 30 to loosen the reins on the economy by selling
assets and scaling back regulation. Sovcomflot, operator of the world’s largest fleet of oil
tankers , is among the first major companies slated for
privatization, said Alexei Uvarov, head of the Economy
Ministry ’s property department, said Feb. 2. The government
plans to sell 50 percent in two steps by the end of this year,
he said then. To contact the reporter on this story:
Ilya Arkhipov in Moscow at
iarkhipov@bloomberg.net To contact the editor responsible for this story:
Brad Cook in Moscow at
Bcook7@bloomberg.net | 2012 | russia-to-complete-privatization-review-by-may-nabiullina-says |
Danone, Nestle Said to Have Bid Proposals for Pfizer Unit | By Jeffrey McCracken and Jacqueline Simmons | 2012-02-18T00:54:05Z | http://www.bloomberg.com/news/2012-02-17/danone-said-to-vie-with-nestle-on-antitrust-plan-for-pfizer-nutrition-unit.html | 2 | 17 | 57f901f440e843f295567072f2753744 | Danone SA (BN) and Nestle SA (NESN) , vying to
buy Pfizer Inc. (PFE) ’s infant-nutrition unit, are working on ways to
overcome antitrust hurdles after submitting preliminary bids of
about $10 billion, said two people with knowledge of the matter. Nestle is considering buying all of Pfizer’s infant-
nutrition assets and then conducting an auction to sell what it
can’t keep because of regulatory concerns it would become too
dominant in some markets, said one of the people, who declined
to be identified because the process is confidential. Danone is
weighing a joint bid with Mead Johnson Nutrition Co. (MJN) and may
split the business along geographies or brands, said the people. Danone, owner of the Bledina brand formula, and Nestle,
maker of Gerber baby food, may present plans to Pfizer in the
coming weeks, said the people. The companies, two of Europe ’s
biggest foodmakers, are seeking to expand in infant nutrition,
where growth has outpaced other parts of the industry. Either buyer would be asking regulators to approve a deal
after regulatory scrutiny ended some of 2011’s biggest
transactions. European antitrust authorities stymied Deutsche
Boerse AG (DB1) ’s planned combination with NYSE Euronext, while the
U.S. Department of Justice sued to block AT&T Inc.’s $39 billion
purchase of T-Mobile USA. (DTE) Exploring Options Pfizer, the world’s biggest drugmaker, hasn’t made a
decision on the nutrition business, which had revenue of $2.14
billion last year, said Joan Campion, a spokeswoman for the New
York-based company. Pfizer is in the process of exploring
options for the unit, which include a sale, spinoff or other
transaction, she said. A spokesman for Nestle declined to comment on the process,
as did a spokeswoman for Paris-based Danone. Pfizer shares declined less than 1 percent to $21.19 at the
close in New York yesterday. The company gained 9.4 percent in
the past 12 months. Danone said this week its baby-food revenue last year rose
11 percent to 3.67 billion euros ($4.8 billion) on a comparable
basis, helping drive total sales growth. Revenue from Nestle’s
nutrition business, excluding acquisitions, disposals and
currency shifts, advanced 7.3 percent to 7.2 billion Swiss
francs ($7.9 billion), the company said this week. Infant
nutrition accounted for about 90 percent of the unit’s sales,
Nestle said. Heinz Interest H.J. Heinz (HNZ) Co., as well as other rival food companies and
regional players, may seek to acquire assets from Nestle in
countries where the Vevey, Switzerland-based company could run
into regulatory snags, the people said. While Pittsburgh-based
Heinz had considered bidding for the entire Pfizer unit, it is
now more focused on buying only parts, said one of these people. A spokesman for Heinz declined to comment. Nestle may face antitrust issues in more than a dozen
countries, while Danone would have hurdles in key markets
including the U.K., the people said. China, where Pfizer generated about 29 percent of its 2010
infant-nutrition revenue, is a country where local regulators
will scrutinize any bid, one person said. China ’s baby-food
market will probably expand by about 17 percent a year from 2010
to 2015, Euromonitor estimated last year. Buying Pfizer’s business would give Nestle about 10 percent
of the infant milk formula market in China, while a Danone
purchase may create a company with at least a 17 percent share,
according to people with knowledge of the figures. Mead Johnson
would likely have the largest, at about 20 percent or more, the
people said. Splitting Brands As part of its plan, Danone may propose that Mead take over
brands such as Pfizer’s SMA line of products, one of the people
said. Danone may also seek to join with Mead to make it easier
for the company to line up the needed financing and spread the
risk of taking on too much debt. Typically to make a joint bid,
the seller must give approval for bidders to work together. Pfizer gained the formula division through its $68 billion
purchase of Wyeth in 2009. The unit, which also makes Enercal
supplements for adults, offers products in more than 60
countries, according to its website, and accounted for 3.2
percent of the company’s 2011 revenue. Pfizer’s Campion said the
company expects to announce a decision on the process in 2012
and complete any transaction from July 2012 to July 2013. Pfizer is shedding its animal health and nutrition
businesses as part of Chief Executive Officer Ian Read ’s plan to
focus on developing new prescription drugs after losing patent
protection for Lipitor, a cholesterol pill and the world’s best-
selling medicine. The divestitures are “on track,” he said in
a Jan. 31 earnings conference call. To contact the reporters on this story:
Jeffrey McCracken in New York at
jmccracken3@bloomberg.net ;
Jacqueline Simmons in Paris at
jackiem@bloomberg.net To contact the editor responsible for this story:
Jennifer Sondag at
jsondag@bloomberg.net | 2012 | danone-said-to-vie-with-nestle-on-antitrust-plan-for-pfizer-nutrition-uni |
BofA Said to Freeze Moynihan’s Salary as Stock Awards Decline | By Hugh Son | 2012-02-18T05:00:03Z | http://www.bloomberg.com/news/2012-02-17/bank-of-america-ceo-moynihan-said-to-be-denied-cash-award-in-2011-package.html | 2 | 17 | 2b9e7ee86ff94c15aa37f6d6bd349379 | Bank of America Corp. cut Chief
Executive Officer Brian T. Moynihan ’s compensation for 2011,
granting him no cash bonus and freezing his salary, said a
person briefed on the executive’s awards. The bank is holding Moynihan’s salary at $950,000, said the
person, who spoke on condition of anonymity because the
Charlotte, North Carolina-based bank hasn’t yet announced his
pay package. It gave him $5.9 million in restricted stock units,
mostly linked to future performance, the firm said yesterday in
a filing. For 2010, the grant had surpassed $9 million. Bank of America, the second-biggest U.S. lender, plunged 58
percent in New York trading last year as Moynihan sold $33
billion in assets and announced 30,000 job cuts amid stagnant
revenue and rising costs from defective mortgages. The stock has
climbed 44 percent this year, the best performance in the 30-
company Dow Jones Industrial Average (INDU) , on optimism that the firm
will benefit as the U.S. economy improves. “They’re setting an example from the top, saying, ‘You
know what? If the company doesn’t do well, our CEO isn’t going
to do as well,’” said Jeanne Branthover , a managing director at
Boyden Global Executive Search Ltd. in New York. “Yes, these
guys make a lot of money, but they have to wait it out with
their deferred equity, like everyone else.” The bank had agreed to award Moynihan, 52, a $9.05 million
restricted-stock bonus last February, according to a regulatory
filing the previous month. This year, it gave him 228,302 in
stock units that pay out in 12 monthly installments and 532,705
in performance-contingent units that he may receive as early as
March 2015 if performance hurdles are met, according to
yesterday’s filing. The value is based on the stock’s closing
price on the award date, Feb. 15. 2011 Profit Bank of America posted net income of $1.4 billion for 2011,
fueled by the divestiture of holdings including a Chinese
lender, compared with a $2.2 billion loss the previous year when
the firm booked $12.4 billion in impairments. Co-chief operating officer Thomas K. Montag was awarded
stock units totaling $8.1 million, most of which are performance
linked awards, according to a filing. David Darnell, the other
COO, got stock units valued at $4.2 million. Chief Financial
Officer Bruce Thompson ’s stock award is valued at $6.2 million. Unlike Moynihan, the managers will also get cash bonuses,
which will be disclosed in a filing next month, the person said. The company told investment bankers in January to expect
compensation that averages 25 percent less than last year,
people with knowledge of the plans said then. Moynihan may trim
expenses in investment and corporate banking, trading and wealth
management by as much as $3 billion after targeting $5 billion
in cuts to retail operations. Gorman, Dimon Morgan Stanley (MS) reduced CEO James Gorman’s 2011 pay by 25
percent from a year earlier as JPMorgan Chase & Co. (JPM) held CEO
Jamie Dimon ’s steady, said people with knowledge of the plans.
Both firms are based in New York . Dimon may receive $23 million, more than double Gorman’s
$10.5 million, said the people, who spoke on condition of
anonymity because the total pay amounts aren’t public. Dimon got
about $17.3 million in stock and options, while Gorman received
$5.1 million of shares, according to Jan. 20 regulatory filings. Goldman Sachs Group Inc. CEO Lloyd Blankfein saw his
restricted stock bonus fall by 44 percent to $7 million for a
year in which earnings dropped by 47 percent on a decline in
fixed-income trading revenue. JPMorgan surpassed Bank of America as the largest U.S.
lender by assets last year and was the most profitable U.S. bank
as net income climbed 9 percent to about $19 billion. Goldman Sachs (GS) fell 46 percent in New York trading last
year, while Morgan Stanley declined 44 percent and JPMorgan
slipped 22 percent. To contact the reporter on this story:
Hugh Son in New York at hson1@bloomberg.net To contact the editor responsible for this story:
David Scheer at dscheer@bloomberg.net . | 2012 | bank-of-america-ceo-moynihan-said-to-be-denied-cash-award-in-2011-package |
Kinnucan’s Phone Threats Should Bar His Release, U.S. Says | By Bob Van Voris | 2012-02-17T23:25:43Z | http://www.bloomberg.com/news/2012-02-17/kinnucan-s-phone-threats-should-bar-his-release-u-s-says-1-.html
U.S. prosecutors urged a judge to
detain John Kinnucan, who is charged with taking part in an
insider-trading scheme, citing a “pattern of threats and
intimidation” against witnesses and U.S. authorities. Prosecutors in court papers quoted from profanity-filled
voice-mail messages left over two months with assistant U.S.
attorneys, FBI agents and a witness who is cooperating with the
government’s investigation. The voice mails contain numerous
ethnic and racial slurs and references to the Holocaust. “Kinnucan has engaged in volatile and extreme conduct,
using references to genocide, violence and physical harm
directed to the targets of his ominous tirades,” Manhattan
prosecutors said in papers filed in federal court in Portland ,
Oregon , where Kinnucan appeared this afternoon and was ordered
held until at least Feb. 22, when his bail hearing resumes. Kinnucan, 54, the founder of Broadband Research LLC, was
arrested at his Portland home yesterday and charged with one
count of conspiracy to commit securities fraud , one count of
conspiracy to commit wire fraud and two counts of securities
fraud in a complaint unsealed in New York. On Dec. 6, prosecutors said, Kinnucan left a voice mail for
an unnamed prosecutor: “Remember me? The guy who you tried to
destroy, you scummy piece of s | 2 | 17 | 6125900fee7366e6aec48dbf7e1bbd758fa0ea90 | another cooperating witness, sending an e-mail to the witness’s
wife that asked her to have the witness call Kinnucan. The case is U.S. v. Kinnucan, 12-mag-424, U.S. District
Court, Southern District of New York (Manhattan). To contact the reporter on this story:
Bob Van Voris in New York at
rvanvoris@bloomberg.net To contact the editor responsible for this story:
Michael Hytha at mhytha@bloomberg.net ; | 2012 | kinnucan-s-phone-threats-should-bar-his-release-u-s-says-1- |
Falcone, Harbinger Capital Sued by Investor Over LightSquared Investment | By Bob Van Voris and Patricia Hurtado | 2012-02-18T05:01:01Z | http://www.bloomberg.com/news/2012-02-17/falcone-s-harbinger-is-sued-by-investor-over-lightsquared-wireless-venture.html | 2 | 17 | a6754263d3df4d7f8dfd1ae9cd8cb4d6 | Hedge fund manager Phil Falcone and
his Harbinger Capital Partners were sued by a New York woman who
claims she and others were misled about the fund’s decision to
put most of the money they invested into LightSquared Inc. (SKYT) Lili Schad, a Wallkill, New York, resident who said she
invested $4 million with Harbinger, claiming she wasn’t told
that more than 60 percent of the partnerhip’s money went into
LightSquared, a company attempting to build a high-speed
wireless network, according to a complaint filed yesterday in
federal court in Manhattan . Schad, who seeks to represent all the limited partners in
Harbinger Capital Partners Fund I LP, also claims she wasn’t
informed that LightSquared’s plan to build the network faced
obstacles from U.S. regulators. The suit seeks unspecified
damages. “Had plaintiff known that defendants would concentrate the
fund’s investments in LightSquared or known of the regulatory
obstacles the company faced, she would have refrained from
investing in the fund or immediately sought to withdraw her
investment from the fund,” Schad said in the complaint. Schad alleged that Harbinger allowed some “favored
investors,” including Goldman Sachs Group Inc. (GS) , to redeem their
investments on terms unavailable to others. She said that in
2009 Harbinger let Goldman Sachs redeem a $50 million investment
in the fund. Lew Phelps, an outside spokesman for Harbinger Capital,
didn’t immediately return a phone message yesterday seeking
comment on the suit. FCC Decision The U.S. Federal Communications Commission said Feb. 14 it
won’t let Reston, Virginia-based LightSquared begin service
because its signals interfere with GPS navigation of cars, boats
and planes. Harbinger Capital has invested $3 billion in the
venture. Falcone is seeking to swap spectrum owned by LightSquared
with that controlled by the U.S. Department of Defense, a person
with knowledge of the company said, in an effort to salvage his
$3 billion investment and save his hedge fund. The hedge fund manager hired Moelis & Co., a New York-based
investment bank, and other advisers to help study alternatives,
said the person, who asked not to be named because the company
is private. If the defense department is not interested in a
swap, Falcone could try to sell the spectrum. How much he could get for it remains unclear. As of the end
of January, Falcone carried his investment in LightSquared
equity at $1.5 billion, or about half of what his hedge fund had
invested to date, according to a Harbinger document. Book Value Brian Miller, an analyst at Bloomberg Research, says the
spectrum is now worth about $500 million. That’s the book value
that its former owner SkyTerra Communications placed on it when
it was originally licensed. At that time the spectrum could only
be used by satellites. In November 2004, the FCC ruled that the
satellite system could be augmented with land-based cell towers,
which was the network LightSquared planned to build. The FCC’s Feb. 14 decision wasn’t “based on science or
technology, but was a politically motivated decision fueled by
special interest groups in the GPS and telecom industry,”
Falcone, 49, said in an e-mailed statement Feb. 15. “There
are solutions to this problem that can and will address the
needs of the GPS community,” added Falcone, who declined to be
interviewed. The U.S. Securities and Exchange Commission and Justice
Department are investigating him over alleged violations of
securities law . He’s had to borrow $190 million from Jefferies
Group Inc. with an effective interest rate of 24 percent, has
investor cash tied up in an iron-ore company in Brazil that he’s
now trying to sell and posted record losses last year. Falcone
has denied any wrongdoing. The case is Schad v. Harbinger Capital Partners LLC, 12-
CV-1244, U.S. District Court, Southern District of New York
(Manhattan). To contact the reporters on this story:
Bob Van Voris in New York at
rvanvoris@bloomberg.net ;
Patricia Hurtado in New York at
pathurtado@bloomberg.net . To contact the editor responsible for this story:
Michael Hytha at mhytha@bloomberg.net . | 2012 | falcone-s-harbinger-is-sued-by-investor-over-lightsquared-wireless-venture |
Yemeksepeti.com in Talks to Sell Stake to Investors, CEO Says | By Ercan Ersoy | 2012-02-17T14:12:34Z | http://www.bloomberg.com/news/2012-02-17/yemeksepeti-com-in-talks-to-sell-stake-to-investors-ceo-says.html | 2 | 17 | 48dbf5bbd1b6e43f545e13ee72ebde6f1753f921 | Yemeksepeti.com , an Istanbul-based
company offering web-based meal order services, is in talks with
private equity and venture capital firms to sell a stake of 10
to 15 percent, chief executive officer Nevzat Aydin said. Three major shareholders including Aydin, who is also the
co-founder of the company, own 70 percent of the company, Aydin
said in a telephone interview yesterday. A decision on whether to sell the stake or not will be made
by the end of March, Aydin said. To contact the reporter on this story:
Ercan Ersoy in Istanbul at
eersoy@bloomberg.net To contact the editor responsible for this story:
Benedikt Kammel at
bkammel@bloomberg.net | 2012 | yemeksepeti-com-in-talks-to-sell-stake-to-investors-ceo-says |
Congress Passes Extension of Payroll Tax Cut | By Steven Sloan, Richard Rubin and Kathleen Hunter | 2012-02-18T05:01:00Z | http://www.bloomberg.com/news/2012-02-17/house-passes-extension-of-payroll-tax-cut-through-2012-by-vote-of-293-132.html | 2 | 17 | 1798e06af5614f44bae1228e18855859 | For the first time since Republicans
won control of the U.S. House of Representatives in November
2010, there isn’t a major fiscal policy bill requiring the
immediate attention of Congress. A coalition of Democrats and Republicans in the House and
Senate voted yesterday to extend a payroll tax cut through the
rest of the year. For a Congress that has waged bitter fights
over the debt ceiling, spending cuts and the payroll tax break,
that means there are almost nine months before the next
significant fiscal questions must be addressed. The 2001 and 2003 tax cuts expire on Dec. 31 along with the
payroll tax cut. In the lame-duck session that Congress is
expected to convene after the November election, lawmakers also
will have to decide the fate of the estate tax, other expired
tax breaks and whether to shield millions of Americans from the
spread of the alternative minimum tax. Meanwhile, the U.S. will again approach the $16.4 trillion
debt ceiling late in the year and, unless Congress acts, a $1.2
trillion cut to defense and other spending will take effect in
January. Charles Schumer of New York , the Senate’s third-ranking
Democrat, said yesterday he hopes the vote on continuing the
payroll tax cut will mark an end to the partisan battles over
the nation’s taxation and spending. “It is very hard these days to pass legislation through
the Senate and through the House,” Schumer told reporters.
“But maybe we’re past the old days of ‘If I don’t get it all my
way, I’m going to block it from happening.’ That’s what
hopefully this is a sign of.” Senate, House Passage The Senate cleared the $145 billion payroll package
yesterday 60-36, just minutes after the House passed it 293-132. In addition to extending a two percentage-point tax cut for
workers, the measure will continue expanded unemployment
benefits and avoid a cut in doctors’ Medicare reimbursements
through the end of this year. The provisions also would have
expired at the end of the month if Congress didn’t act. Speaking at a Boeing Co. (BA) production facility in Everett,
Washington after the vote, President Barack Obama said Congress
“did the right thing.” The president is expected to quickly
sign the measure into law, said his spokesman, Jay Carney . In the House, 146 Republicans and 147 Democrats supported
the legislation while 91 Republicans and 41 Democrats voted
against it. Fourteen Senate Republicans joined 45 Democrats and
one independent in voting for the plan, while 30 Republicans,
five Democrats and one independent opposed it. ‘Pretty Confident’ Senator Ben Cardin of Maryland, one of the Democrats to
oppose the bill, said he objected to asking federal workers to
help pay for expanded jobless benefits by increased
contributions to their pensions. He said in an interview he felt
“pretty confident” that Democratic leaders would oppose
additional efforts to tap government employees’ pay and benefits
to cover the cost of new spending or tax cuts. Cardin’s Democratic colleague from Maryland , Senator
Barbara Mikulski, also opposed the deal. Maryland’s Washington
suburbs have a high concentration of federal government workers. “Both sides gave a little to get something done,” Senate
Majority Leader Harry Reid said before the chamber began voting
yesterday. In negotiations led by Representative Dave Camp , a Michigan
Republican, and Senator Max Baucus , a Montana Democrat, both
parties made political sacrifices. Democrats agreed to health-
care cuts and a reduction in emergency unemployment benefits
while Republicans abandoned their insistence on covering the
cost of the full measure. “We have to vote for this bill because it does a lot of
very important things,” Representative Frank Pallone , a New
Jersey Democrat, said on the floor before the vote. “But I also
have to express my reservations.” The measure is H.R. 3630. To contact the reporters on this story:
Steven Sloan in Washington at
ssloan7@bloomberg.net ;
Richard Rubin in Washington at
rrubin12@bloomberg.net ;
Kathleen Hunter in Washington at
khunter9@bloomberg.net To contact the editor responsible for this story:
Jodi Schneider at
jschneider50@bloomberg.net | 2012 | ouse-passes-extension-of-payroll-tax-cut-through-2012-by-vote-of-293-132 |
Hahn Gets EU100 Mln From Deutsche Bank Kirch Deal, Focus Says | By Karin Matussek | 2012-02-17T06:57:40Z | http://www.bloomberg.com/news/2012-02-17/hahn-gets-eu100-mln-from-deutsche-bank-kirch-deal-focus-says.html | 2 | 17 | 8ae78fd9859232c15b96be95dd9a9453d2df5fe2 | Dieter Hahn, deputy to the late
publisher Leo Kirch , will receive about 100 million euros ($131
million) out of the 800 million euro settlement reached between
Deutsche Bank AG (DBK) and Kirch’s heirs, Focus reported, in a preview
of its next edition. Hahn will invest the money in sporting rights, according to
the magazine. Deutsche Bank Chief Executive Officer Josef Ackermann met Kirch’s widow Ruth and his son Thomas last weekend
for two days and negotiated the settlement terms, Focus
reported, without saying where it got the information. To contact the reporter on this story:
Karin Matussek in Berlin at
kmatussek@bloomberg.net To contact the editor responsible for this story:
Anthony Aarons at
aaarons@bloomberg.net | 2012 | ahn-gets-eu100-mln-from-deutsche-bank-kirch-deal-focus-says |
EU Steelmakers Cite Antitrust Concerns on Glencore-Xstrata | By Aoife White | 2012-02-17T17:41:36Z | http://www.bloomberg.com/news/2012-02-17/eu-steelmakers-cite-antitrust-concerns-on-glencore-xstrata-deal.html | 2 | 17 | 337b17441dd3ae2c7203f1d6a5bb8cdcc91c435b | European steelmakers group Eurofer
said it is concerned Glencore International Plc’s takeover of
Xstrata Plc (XTA) may harm competition in the zinc, nickel and coal
markets. Eurofer will gather data before deciding whether to file an
antitrust complaint with the European Commission over the
“competition implications of the merger,” Axel Eggert,
Eurofer’s public affairs director in Brussels, said in an e-mail
today. Glencore, the world’s largest publicly traded commodities
supplier, agreed last week to buy Xstrata. The world’s biggest
mining deal may win antitrust approval because the EU said in
2006 that Glencore’s 34 percent stake in Xstrata means they are
already a single group, according to analysts at Numis Corp.
“Our concerns are with regard to the potential impact on the
markets for zinc, nickel and coal,” Eggert said today on behalf
of the group, which has members including the world’s largest
steelmaker, ArcelorMittal (MT) , and Germany ’s largest steel producer
ThyssenKrupp AG. Xstrata is “confident” that combining with Glencore
“will not result in any negative impact on competition in the
commodity markets” the company said in an e-mail. To contact the reporter on this story:
Aoife White in Brussels at
awhite62@bloomberg.net To contact the editor responsible for this story:
Christopher Scinta at
cscinta@bloomberg.net | 2012 | eu-steelmakers-cite-antitrust-concerns-on-glencore-xstrata-dea |
Christie’s Veto of New Jersey Gay-Marriage Bill Sets Up Fight on Override | By Terrence Dopp and Esmé E. Deprez | 2012-02-18T05:01:00Z | http://www.bloomberg.com/news/2012-02-17/christie-vetoes-same-sex-marriage-bill-sent-to-him-by-new-jersey-lawmakers.html
Governor Chris Christie fulfilled
his pledge to veto a bill that would have legalized same-sex
marriage in New Jersey (STONJ1) , setting up an override fight between the
Republican and Democrats who control the Legislature. The move by Christie, 49, came shortly before lawmakers in
Maryland approved a similar measure, with the support of
Governor Martin O’Malley , a Democrat. Backers of the New Jersey
bill said they’ll work to pass it over the veto by Christie. “For someone who has national aspirations in the
Republican party right now, I think there’s not much choice but
to take this position,” Ken Sherrill, who teaches politics at
Hunter College in New York, said yesterday by telephone. Christie has said he believes that marriage should be
between a man and a woman and that the issue should be decided
by a statewide ballot measure. Voters in states around the
nation have rejected gay marriage in all 31 referendums dealing
with the question. Washington Governor Christine Gregoire, a
Democrat, on Feb. 13 made that state the seventh to let same-sex
couples wed, joining New York , Massachusetts, Connecticut , Iowa ,
New Hampshire , Vermont and the District of Columbia . A bill to permit same-sex marriage passed Maryland’s House
of Delegates 71-67 yesterday, moving the issue to the Senate,
which approved a similar measure last year. Christie Seeks Changes In rejecting the legislation in Trenton yesterday, Christie
invoked a “conditional veto,” which lets him return the
measure to lawmakers asking for changes. He suggested creating
an ombudsman to tighten enforcement of the civil-union law that
pertains to same-sex couples and renewed his referendum push. “I am adhering to what I’ve said since this bill was first
introduced | 2 | 17 | 610bf5ed054146f69a57f2bbd775f337 | not an idiot,” said Sherrill, a former New York elected
official who is married to another man. “‘Let the people vote’
has been a chant from the opponents of marriage equality going
back to the Massachusetts days.” Two Years Sponsors of the rejected bill have almost two years before
the legislative session ends to assemble the two-thirds majority
needed to overcome Christie’s veto. Supporters need 27 votes in
the Senate, where Democrats have a 24-16 margin, and 54 in the
Assembly, where the party holds a 48-32 edge. The measure passed
42-33 in the Assembly Feb. 16 and 24-16 in the Senate Feb. 13. “We will override this veto,” Senate President Stephen Sweeney , a West Deptford Democrat, said in a statement. He said
on Feb. 13 that “there’s not a chance in hell” he’d bring a
bill authorizing a ballot measure to a vote in his chamber. “This is about nothing but feeding into peoples’
prejudices against gays and lesbians,” said Assemblyman Reed Gusciora, a gay Democrat representing Trenton who sponsored the
measure. “This is not going to destroy anybody’s marriage. It
just doesn’t make any sense.” Ambitious Move Steven Goldstein, chairman of Garden State Equality, a gay-
rights group that supported the measure, said he believes
Christie’s opposition comes from national political ambitions
and seeking to appease the socially conservative wing of his
party. He called the veto a “brutally anti-gay act.” “I don’t think Chris Christie has an anti-gay bone in his
body,” Goldstein said. Christie vetoed the bill “because the
2016 South Carolina Republican presidential primary electorate
is anti-gay.” Christie, speaking to reporters on Feb. 14, said he didn’t
believe Democrats could muster the votes for an override. He has
said he would abide by the results of a referendum, and that he
believes such a question probably would pass in New Jersey,
where polls show a majority of voters support same-sex marriage. The New Jersey Family Policy Council, which has opposed the
practice, didn’t immediately respond to a request for comment on
the veto. To contact the reporters on this story:
Terrence Dopp in Trenton, New Jersey, at
tdopp@bloomberg.net ;
Esme E. Deprez in New York at edeprez@bloomberg.net ; To contact the editor responsible for this story:
Mark Tannenbaum at
mtannen@bloomberg.net | 2012 | christie-vetoes-same-sex-marriage-bill-sent-to-him-by-new-jersey-lawmakers |
Bird Flu Research to Stay on Hold as Papers to Be Published | By Simeon Bennett | 2012-02-17T17:27:36Z | http://www.bloomberg.com/news/2012-02-17/bird-flu-research-to-stay-on-hold-as-papers-to-be-published-1-.html
Bird flu experts meeting in Geneva
agreed to allow the publication of two studies that alarmed U.S.
security officials by showing how to make the deadly H5N1 virus
easily transmissible. The publication of the papers will be delayed to allow a
better explanation to the public of why the work is necessary,
said Ron Fouchier, who led one of the research groups at Erasmus
Medical Center in Rotterdam, the Netherlands. A moratorium on
the research will continue until health officials agree on the
circumstances under which the research should be done. “The consensus of this meeting is that in the interests of
public health the full paper should be published,” Fouchier
said at a press conference at the World Health Organization ’s
headquarters in Geneva today. “This was based on the high
public-health impact of this work and the need to share the
details of the studies with a very big community, in the
interests of science, surveillance and public health as a
whole.” The H5N1 strain of avian influenza has infected at least
584 people in 15 countries since 2003, killing almost 60 percent
of them, according to the WHO. Most victims have had direct
contact with infected birds, and the virus hasn’t so far shown a
capacity to spread easily from person to person. Mutating Viruses Still, flu viruses mutate constantly, causing scientists
and health authorities to fret that one such genetic change may
make H5N1 more contagious among humans, touching off a pandemic
that may kill millions. The meeting was organized after two groups of researchers -
- one in the U.S. and the other in the Netherlands | 2 | 17 | 8b2d86f9e2fb841764f9fe5ccdbd3ee535f89538 | H5N1 to make it more transmissible among ferrets, the mammals
whose response to flu is most like that of humans. The studies
were intended to demonstrate what it would take for the virus to
spread rapidly between people, giving scientists and health
officials more information with which to prepare for a pandemic. The researchers, led by Fouchier and Yoshihiro Kawaoka at
the University of Wisconsin at Madison, agreed to suspend the
work for 60 days after the U.S. National Science Advisory Board
for Biosecurity asked two journals in December to censor some
details of the work to ensure it wouldn’t “fall into the wrong
hands.” WHO Meeting The WHO invited 22 participants to the meeting, including
Fouchier and Kawaoka, the editors of the journals Science and
Nature, the heads of WHO flu labs worldwide, a representative of
the U.S. biosecurity board, and Anthony S. Fauci, director of
the U.S. National Institute of Allergy and Infectious Diseases ,
which funded the work. Censoring the research won’t stop scientists with “an
intent to cause harm” from getting hold of the information,
said David Heymann, a former assistant director-general of the
WHO, who didn’t attend the meeting. Heymann is head of the
Centre on Global Health Security at Chatham House , a London-
based think tank. “If rogue scientists want to get a hold of anything, they
know how to do it and they will do it,” Heymann said in a
telephone interview before the meeting ended. “What you can do
is mold public opinion and scientific opinion towards best
practices, which puts peer pressure on everybody.” To contact the reporter on this story:
Simeon Bennett in Geneva at
sbennett9@bloomberg.net To contact the editor responsible for this story:
Phil Serafino at
pserafino@bloomberg.net | 2012 | bird-flu-research-to-stay-on-hold-as-papers-to-be-published-1- |
MSG Under Pressure to Strike Cable Deal While ‘Linsanity’ Lasts | By Alex Sherman | 2012-02-17T18:31:26Z | http://www.bloomberg.com/news/2012-02-17/msg-under-pressure-to-strike-cable-deal-while-linsanity-lasts-for-knicks.html
Jeremy Lin’s rise to fame has more
than doubled ratings at MSG (MSG) network, putting renewed pressure on
parent Madison Square Garden Co. to strike a deal with Time
Warner Cable Inc. (TWC) in their dispute over carriage fees. A blackout has prevented about 2.8 million local Time
Warner Cable subscribers from watching most of the New York
Knicks point guard’s games in his rise from backup to National
Basketball Association Eastern Conference Player of the Week. Lin’s success has led the two sides back to a face-to-face
meeting this week after a two-month standoff. Time Warner Cable
is facing angry fans and customer cancellations. For MSG,
there’s urgency to get a contract now, while the “Linsanity”
celebrated on T-Shirts sold all over New York lasts, according
to Chris Marangi, portfolio manager at Gamco Investors Inc. “MSG loses all its leverage once the season ends, so it’s
a game of chicken,” said Marangi, based in Rye, New York, whose
funds own about 5 million MSG shares and 500,000 Time Warner
Cable shares. “They really need to get a deal done sooner
rather than later.” Time Warner Cable, the second-largest U.S. cable provider
with about 12 millions customers, has said MSG is asking for a
53 percent increase in carriage fees, a figure MSG disputed.
Time Warner Cable’s customers aren’t the only ones missing some
of the Knicks’ games: Dish Network Corp. (DISH) , the satellite-TV
provider, doesn’t carry MSG either after failing to reach a
contract. While Lin captivates his basketball fans, he isn’t giving
MSG an upper hand, said Maureen Huff , a spokeswoman at New York-
based Time Warner Cable. MSG was on a basic cable package, which
means there are customers paying for the network who may not
care about the Knicks, Huff said. “We have to protect all of our customers,” said Huff. ‘Fair Value’ The two sides had a face-to-face conversation this week,
MSG Media President Mike Bair said on WFAN radio. MSG wants Time
Warner Cable to recognize the network’s “fair market value,”
Bair said in an e-mail. Customers may begin to turn against Time Warner Cable as
Lin’s popularity grows, said John Tinker, an analyst at Maxim
Group LLC in New York. In the past week, Lin has outscored Los Angeles Lakers
guard Kobe Bryant and received kudos from President Barack Obama . New Twitter followers include former General Electric Co. (GE)
Chief Executive Officer Jack Welch , former heavyweight champion
Mike Tyson , and Vinnie Guadagnino from MTV’s “Jersey Shore”
reality show. ‘Strong Argument’ The Harvard graduate has made the Knicks more watchable,
and he’s attractive to audiences that would normally ignore NBA
games, Tinker said. “MSG has a strong argument,” Tinker said. “They’re
giving people what they want. So why shouldn’t they charge Time
Warner Cable more for it?” Time Warner Cable still has leverage. MSG is losing money
by not doing a deal | 2 | 17 | aab7f0a52dcd41c289360e54d2d61e0e | including Walt Disney Co. (DIS) ’s ABC and ESPN and Time Warner Inc. (TWX) ’s
TNT, which Time Warner Cable carries. This will allow Time Warner Cable customers to see Lin play
against some of the NBA’s best teams, including the defending
champions, the Dallas Mavericks , and LeBron James’s Miami Heat. If the Knicks are in the hunt for a playoff berth, eight of
the team’s 13 games in April are set to be carried by national
channels, barring scheduling changes. MSG doesn’t have exclusive
rights to any playoff game. ‘Strategic Differentiator’ Time Warner Cable’s risk to lose customers might be
minimized by the fact that many Manhattan residents are unable
to get satellite TV because tall buildings obstruct signals,
according to David Joyce , an analyst at New York-based Miller
Tabak & Co. And not all buildings are wired for Verizon
Communications Inc. (VZ) ’s FiOS or RCN Corp., a smaller cable
provider that serves certain areas of New York City , he said. “There may be only a few hundred thousand subscribers at
risk,” said Joyce. “Having MSG is a strategic differentiator
for some, though.” Cable and satellite-TV operators pay more than $4.50 a
month per subscriber for MSG and MSG Plus, according to
researcher SNL Kagan. Time Warner Cable Chief Executive Officer
Glenn Britt has publicly supported the idea of putting sports on
separate tiers from basic cable to give non-sports fans cheaper
bills. Time Warner Cable rose 0.2 percent to $77.17 at 1:04 p.m.
New York time. MSG, based in New York, declined 0.7 percent to
$31.66. As of yesterday, the stock had gained 8.1½ percent since
Feb. 4, when Lin came off the bench to score 25 points against
the New Jersey Nets to begin New York’s seven-game winning
streak. Fans have taken to blogs and Twitter to express their
discontent with the cable situation, clamoring for the chance to
see Lin in each game he plays. Even Knicks guard Bill Walker
weighed in with his frustration. “Time Warner Cable and MSG need to get together and let
the fans watch their games,” said Walker in an interview on
Feb. 15. “Some people out there are very mad about that.” To contact the reporter on this story:
Alex Sherman in New York at
asherman6@bloomberg.net To contact the editor responsible for this story:
Ville Heiskanen at
vheiskanen@bloomberg.net | 2012 | sg-under-pressure-to-strike-cable-deal-while-linsanity-lasts-for-knicks |
Standard Bank Plans Africa Mobile Payments, Business Day Says | By Stephen Gunnion | 2012-02-17T05:29:15Z | http://www.bloomberg.com/news/2012-02-17/standard-bank-plans-africa-mobile-payments-business-day-says.html | 2 | 17 | e1a48a515eab32acf16062e1ffc18e52b9d5a2bf | Standard Bank Group Ltd. (SBK) is
targeting Nigeria as it expands its mobile banking and payment
services in Africa, Business Day reported, citing Herman Singh,
chief executive officer of Beyond Payments, the bank’s mobile-
payments unit. The bank will tailor its system, developed in South Africa ,
for use in other countries in Africa, the Johannesburg-based
newspaper cited Singh as saying. To contact the reporter on this story:
Stephen Gunnion in Johannesburg at
sgunnion@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at gserkin@bloomberg.net | 2012 | standard-bank-plans-africa-mobile-payments-business-day-says |
German President Faces Calls to Quit | By Karin Matussek and Rainer Buergin | 2012-02-17T09:04:45Z | http://www.bloomberg.com/news/2012-02-17/german-president-faces-mounting-calls-to-quit-as-merkel-cancels-rome-trip.html | 2 | 17 | cd885abf6e45ede0b63cdde21e42ce0dc3b77dab | German opposition lawmakers stepped
up pressure on President Christian Wulff to resign after
prosecutors signaled their readiness to start a formal
investigation into allegations he accepted illicit favors. Prosecutors in the German state of Lower Saxony , which
Wulff governed from 2003 to 2010, have submitted a request to
the lower house of parliament to have the president’s immunity
lifted. They want to open an official probe after finding
“initial evidence to suppose” the acceptance of benefits, the
prosecutor’s office in the state capital of Hanover said in a
statement on its website today. “Christian Wulff cannot carry on in office,” Andrea Nahles, general secretary of the main opposition Social
Democratic Party , said in an interview with N-TV today. “It’s
no longer tenable,” she said. “There’s an honorable way to
resolve this situation and Christian Wulff has it in his own
hands to do so.” Wulff will give a statement at 11 a.m. today in Berlin, his
office said in an e-mail. Chancellor Angela Merkel , who picked
Wulff to replace Horst Koehler in May 2010, canceled a planned
trip to Rome for talks with Italian Prime Minister Mario Monti
and will make a statement at 11:30 a.m. Berlin time. Allegations have buffeted Wulff, a former deputy leader of
Merkel’s Christian Democratic Union party, for more than two
months now, threatening to distract the chancellor as she
battles the euro-area debt crisis. Home Loan Germany ’s best-selling Bild newspaper on Dec. 13 first
reported allegations relating to a private home loan during
Wulff’s time as state prime minister. Within days, he was facing
growing scrutiny of his financial affairs, including vacations
at the homes of business people. Wulff’s lawyer Gernot Lehr declined to comment when
contacted by telephone today. Prosecutors have been looking into whether they need to
question Wulff over payments by businessman David Gronewold in
connection with a vacation on the German island of Sylt in 2007. German financial regulator Bafin is meanwhile reviewing
whether Wulff violated capital market rules in the wake of
Porsche SE’s failed bid to take over Volkswagen AG (VOW) , Der Spiegel
reported today. Wulff may have learned in February 2008 that
Porsche was planning the bid and Bafin is reviewing whether he
may have had to disclose that fact to the markets, the magazine
reported, without saying where it got the information. As the
prime minister of Volkswagen’s home state of Lower Saxony, he
was a member of the carmaker’s supervisory board at the time. Bafin’s press office didn’t immediately return a call
seeking comment. Office Raided Last month, an office in the president’s Berlin residence
was searched by prosecutors as part of a separate investigation
of his former spokesman, Olaf Glaeseker. The workplace was
raided because Glaeseker had left private material there that
the president’s office couldn’t hand over. Under German law, prosecutors must open a criminal
investigation if they have evidence supporting a suspicion that
criminal laws have been violated. If the suspect is a member of
parliament or the president, they cannot open the probe unless
parliament has lifted their immunity. To contact the reporters on this story:
Karin Matussek in Berlin at
kmatussek@bloomberg.net ;
Rainer Buergin in Berlin at
rbuergin1@bloomberg.net To contact the editors responsible for this story:
James Hertling at jhertling@bloomberg.net ;
Anthony Aarons at aaarons@bloomberg.net | 2012 | german-president-faces-mounting-calls-to-quit-as-merkel-cancels-rome-trip |
Atlantia Board to Approve Asset Swap Deal With Gavio Today, Il Sole Says | By Chiara Vasarri | 2012-02-17T08:07:34Z | http://www.bloomberg.com/news/2012-02-17/atlantia-board-to-approve-asset-swap-deal-with-gavio-today-il-sole-says.html | 2 | 17 | 512007ee98489c69eff820cea6e22d536af185eb | Atlantia SpA (ATL) ’s board will meet today
to approve an asset swap deal with transportation specialist
Gavio SpA, Il Sole 24 Ore newspaper reported, without saying
where it got the information. To contact the reporter on this story:
Chiara Vasarri in Rome at
cvasarri@bloomberg.net To contact the editor responsible for this story:
Jerrold Colten at jcolten@bloomberg.net | 2012 | atlantia-board-to-approve-asset-swap-deal-with-gavio-today-il-sole-says |
HDFCand L&T FIN CP deal:India Money Markets | By Shraddha Kothari | 2012-02-17T12:33:43Z | http://www.bloomberg.com/news/2012-02-17/hdfcand-l-t-fin-cp-deal-india-money-markets.html | 2 | 17 | 227d05b75685a42df9e4e8b0685643867d4262a1 | Following is a table showing comm
dealt by Indian companies. The data has been provided by Trust
Consultancy Services.
Contributed via: Bloomberg Publisher WEB Service Provider ID: b3e0519397bb45aea53bf805aff9d32d | 2012 | dfcand-l-t-fin-cp-deal-india-money-markets |
Alibaba Group Said to Plan Privatizing Alibaba.com Close to IPO Price | By Cathy Chan and Katrina Nicholas | 2012-02-17T06:27:58Z | http://www.bloomberg.com/news/2012-02-17/alibaba-said-to-plan-to-take-alibaba-com-private-for-close-to-ipo-price.html | 2 | 17 | 5e91c59cb412eab7776fff415b323f2a5a8eb484 | Alibaba Group Holding Ltd. (ALIBABZ) plans to
take private its Alibaba.com Ltd. (1688) unit in a deal that may value
the Hong Kong-listed company at as much as $8.7 billion,
according to two people with knowledge of the matter. China ’s biggest e-commerce company, which owns more than 72
percent of Alibaba.com , may offer a price close to the HK$13.50
a share at which the stock was sold in a 2007 initial public
offering, one person said, asking not to be identified because
the information is private. That’s 55 percent above Alibaba.com’
20-day moving average through Feb. 8, after which its shares
were suspended. At the IPO price, buying the 28 percent it doesn’t already
own will cost Alibaba Group about $2.4 billion, according to
data compiled by Bloomberg. John Spelich, a Hong Kong-based
spokesman for Alibaba Group, declined to comment. Hong Kong Economic Times reported yesterday that Alibaba
Group may offer HK$13.50 a share, citing people it didn’t
identify. The privatization is being planned with Alibaba.com’s
shares down 44 percent in the 12 months before trading was
halted. The IPO was priced a day before the Hang Seng Index
climbed to a record on Oct. 30, 2007. Since then, the index has
dropped 32 percent, according to data compiled by Bloomberg. Alibaba Group’s talks to buy back a stake in itself that is
currently held by Yahoo! Inc. (YHOO) have reached an impasse, a person
familiar with the matter said this week. Yahoo is the biggest
shareholder in closely held Alibaba Group with a stake of about
40 percent. Alibaba Group plans to sign loan documents for a $3 billion
facility with six banks as early as next week, a person familiar
with the matter said today. The funds are being borrowed for a
potential deal involving Yahoo, which could also include buying
back Alibaba.com, the person said. To contact the reporters on this story:
Cathy Chan in Hong Kong at
kchan14@bloomberg.net ;
Katrina Nicholas in Singapore at
knicholas2@bloomberg.net To contact the editor responsible for this story:
Mohammed Hadi at
mhadi1@bloomberg.net | 2012 | alibaba-said-to-plan-to-take-alibaba-com-private-for-close-to-ipo-price |
Diamond Trust of Kenya Rises to Highest Level in 3 Months | By Eric Ombok | 2012-02-17T12:29:33Z | http://www.bloomberg.com/news/2012-02-17/diamond-trust-of-kenya-rises-to-highest-level-in-3-months-1-.html | 2 | 17 | 8f8845eb123d3b893011d68cc285e1b85f15080a | Diamond Trust of Kenya Ltd. , a
Kenyan bank that is also publicly traded in Uganda and Tanzania,
rose to the highest level in almost three months. The stock climbed 2.8 percent to 91 shillings at the close
in Nairobi, the capital, the highest since Nov. 21. Diamond Trust was rated new “hold” this week with a 12-
month price estimate of 99.30 shillings a share by George Bodo,
an equity analyst at ApexAfrica Investment Bank Ltd. in Nairobi. To contact the reporter on this story:
Eric Ombok in Nairobi at
eombok@bloomberg.net To contact the editor responsible for this story:
Shaji Mathew at
shajimathew@bloomberg.net | 2012 | diamond-trust-of-kenya-rises-to-highest-level-in-3-months-1- |
Running for President? No Experience Necessary: Michael Kinsley | By Michael Kinsley | 2012-02-17T00:00:07Z | http://www.bloomberg.com/news/2012-02-17/running-for-president-no-experience-necessary-michael-kinsley.html
During a presidential debate in
1984, Ronald Reagan , who was then 73, famously said of his
opponent, Walter Mondale, who was then 56 and trying to make an
issue of Reagan’s age: “I am not going to exploit for political
purposes my opponent’s youth and inexperience.” The joke turns, of course, on the reasonable assumption
that, as a rule, experience is a good thing and inexperience is
a bad thing. Mitt Romney started this year’s presidential campaign with
the same assumption. So did other Republicans. “Inexperienced”
was their favorite one-word accusation against President Barack Obama . It is witheringly dismissive without seeming overtly
hostile or in any way racist. Come back in a few years, sonny,
when you’ve had some experience. Even Mahmoud Ahmadinejad , the
president of Iran , called Obama “inexperienced,” though I guess
that’s a step up from “the great Satan.” If politics were a resume contest, Romney’s would be hard
to beat. Successful private businessman. Generally successful
one-term governor. Saved the Salt Lake City Olympics. Or so everybody thought, including Romney. Thanks to Newt Gingrich and Rick Santorum , though, the whole successful-
businessman theme has turned from a plus to a minus. And this is in the Republican primaries. Romney has now
been repositioned by his opponents as a rich guy who enjoys
throwing people out of work. We hear almost nothing from Romney
about his accomplishments as governor. He might as well have
been out of work (as he foolishly | 2 | 17 | 301de27eb3494048882ff6b594536e72 | with no political experience, like Lee Iacocca or Ross Perot .
But Romney is pretending to be that person, and he’s still the
second-most-likely person to be president a year from now. ( Michael Kinsley is a Bloomberg View columnist. The
opinions expressed are his own.) Read more opinion online from Bloomberg View . To contact the writer of this article:
Michael Kinsley at mkinsley@bloomberg.net . To contact the editor responsible for this article:
Michael Newman at mnewman43@bloomberg.net . | 2012 | running-for-president-no-experience-necessary-michael-kinsley |
Greece May Be Allowed Higher Debt Level in Bailout Accord, Schaeuble Says | By Rainer Buergin | 2012-02-17T20:10:06Z | http://www.bloomberg.com/news/2012-02-17/greece-may-be-allowed-higher-debt-level-in-bailout-accord-schaeuble-says.html | 2 | 17 | cef5796bff4950fa52d3ac2d9e32d392fbd7f8f0 | German Finance Minister Wolfgang Schaeuble said Greece may be allowed to run a higher debt in
coming years than envisaged so far as part of the second
international aid package for the over-indebted country. A debt level as high as 123 percent of gross domestic
product by 2020 may be permissible instead of 120 percent under
the 130 billion-euro ($171 billion) lifeline scheduled for
approval at a Feb. 20 meeting of euro region finance ministers,
Schaeuble said. Greece’s debt amounted to about 160 percent of
GDP last year. “The 120 percent may be 122 percent or 123 percent,”
Schaeuble said at a panel discussion in the southern city of
Stuttgart today. “It mustn’t be 130 percent.” Greece has so far implemented spending cuts and revenue
increases that would push its debt to 129 percent of GDP by
2020, the so-called troika of International Monetary Fund , the
European Commission and the European Central Bank estimates,
according to two people familiar with discussions that involve
the troika. “We need an arrangement that assures in a realistic
assumption that Greece will be granted debt sustainability in
2020,” Schaeuble said later in an interview with ZDF public
television. “This is only the case if it isn’t much above 120
percent” of GDP. To contact the reporter on this story:
Rainer Buergin in Berlin at
rbuergin1@bloomberg.net To contact the editor responsible for this story:
James Hertling at
jhertling@bloomberg.net | 2012 | greece-may-be-allowed-higher-debt-level-in-bailout-accord-schaeuble-says |
Goldman Said to Delay Samurai Bond on Downgrade Review | By Yusuke Miyazawa | 2012-02-17T04:13:29Z | http://www.bloomberg.com/news/2012-02-17/goldman-said-to-postpone-five-year-samurai-bond-sale-to-feb-21.html | 2 | 17 | 3faf1afd2e5d4bd186666cd57f8ac8a8 | Goldman Sachs Group Inc. (GS) delayed its
first sale of Samurai bonds in four years after Moody’s
Investors Service placed the bank under review for downgrade,
according to a person with direct knowledge of the matter. Goldman Sachs pushed back the offering, which may have been
as early as today, to at least Feb. 21, the person said, asking
not to be identified because the information is private. The
brokerage told investors it plans to raise the size of the sale
to at least 60 billion yen ($759 million), from 50 billion yen,
and will widen the proposed yield premium, the person said. The five-year sale would make it the busiest start to the
year on record for the market for yen-denominated notes issued
by overseas borrowers, according to data compiled by Bloomberg.
A taxation rule change next month may make it more difficult for
U.S. borrowers to sell Samurai bonds. Moody’s said Goldman
Sach’s rating may be cut by two grades, which would lower it to
A3, the seventh-highest level. “Japanese investors have strong faith in Goldman Sachs, so
they will buy the bonds,” Hiroaki Fujioka, a senior credit
analyst at Daiwa Securities Capital Markets Co., said in a
telephone interview from Tokyo . “But they may be downgraded to
the bottom of the ’A’ range, which means after that investors
need to consider the risk of a reduction to triple B. That’s why
they increased the spread.” Hiroko Matsumoto, a spokesman for Goldman Sachs in Tokyo,
declined to comment on the Samurai bond sale. The offering is being managed by Goldman Sachs’ Japanese
unit, according to a Feb. 15 filing with the finance ministry . Yield Premium The firm is marketing the notes to yield between 195 basis
points and 210 basis points more than the yen swap rate, having
previously targeted a range of 170 basis points to 195 basis
points, the person said. The Samurai sale also includes floating-rate notes, of the
same maturity, yielding between 210 basis points and 225 basis
points more than the three-month London interbank offered rate
for yen, according to the person. “Capital markets firms are confronting evolving
challenges, such as more fragile funding conditions, wider
credit spreads, increased regulatory burdens and more difficult
operating conditions,” Moody’s said in a statement. Goldman
Sachs is among 17 banks and securities firms that Moody’s placed
under review for downgrade. Goldman Sachs last sold Samurai bonds in January 2008,
raising 148.5 billion yen, including 18.3 billion yen of five-
year, 2.11 percent bonds priced to yield 110 basis points more
than the yen swap rate, according to data compiled by Bloomberg. Busiest Market A 60 billion-yen sale by Goldman Sachs would bring issuance
this year to 497 billion yen, the most since at least 2001,
according to data compiled by Bloomberg. Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden NV, the Dutch development finance company
known as FMO, also plans to offer 20 billion yen of five-year
notes as early as Feb. 22, a person with direct knowledge of the
matter said today. FMO, which has a top AAA rating from Standard & Poor’s ,
told investors it will price the bonds to yield between 35 basis
points and 37 basis points more than the yen swap rate, said the
person, asking not to be identified as the information is
private. Daiwa Securities Group Inc. and Mizuho Financial Group
Inc. are helping FMO sell the bonds, the person said. To contact the reporter on this story:
Yusuke Miyazawa in Tokyo at
ymiyazawa3@bloomberg.net To contact the editor responsible for this story:
Shelley Smith at
ssmith118@bloomberg.net | 2012 | goldman-said-to-postpone-five-year-samurai-bond-sale-to-feb-21 |
Guus Hiddink Signs 18-Month Contract to Coach Russia’s Anzhi Soccer Club | By Paul Abelsky | 2012-02-17T14:20:40Z | http://www.bloomberg.com/news/2012-02-17/guus-hiddink-signs-18-month-contract-to-coach-russia-s-anzhi-soccer-club.html | 2 | 17 | ea381bb5d2c793baafab68a221bdcb92e048254f | Guus Hiddink, who took Russia to the
semifinals at soccer’s 2008 European Championship, was named as
coach of Russian club Anzhi Makhachkala after signing a 1 1/2
year contract today, according to a statement published on the
team’s website today. To contact the editor responsible for this story:
Paul Abelsky at
pabelsky@bloomberg.net | 2012 | guus-hiddink-signs-18-month-contract-to-coach-russia-s-anzhi-soccer-club |
Top Cyclists Ride ‘Wave’ to Set New World Records at Olympic Velodrome | By Danielle Rossingh | 2012-02-17T16:39:09Z | http://www.bloomberg.com/news/2012-02-17/top-track-cyclists-ride-wave-to-set-records-at-london-olympic-velodrome.html | 2 | 17 | dafc3dcd2413484987a0ab5e14e51a5c | The Olympic Velodrome hosted its
first world record on the second day it was open to top riders. The building in London ’s Olympic Park in the eastern part
of the city is hosting the UCI Track Cycling World Cup until
Feb. 19. The event has attracted five Olympic champions
including Britain’s Chris Hoy, and 16 world champions. Track cycling has grown in popularity in Britain since the
country took seven of the sport’s ten medals at the 2008 Beijing
Games. All of the 25,000 tickets to the World Cup’s six sessions
were sold out in half an hour. “It’s like a wave following you around,” Britain’s Steven
Burke told reporters, when asked about the atmosphere in the
Velodrome, which has a double-curved roof. Burke won a bronze in
Beijing in the individual pursuit. Australia ’s Kaarle McCulloch and Anna Meares today set the
first world record. The world champion pair beat Lithuania ’s
Gintare Gaivenyte and Simona Krupeckaite in a women’s team
sprint qualifier over two laps in 32.828 seconds. That beat
Australia’s previous world record of 32.923 seconds set in
Copenhagen in 2010. The pair will race Britain in the evening
session today for the gold medal. “It felt really nice,” McCulloch said. “Personally, I’ll
be better tonight. I was a little nervous as it was the first
one.” ‘Very Fast’ The 250-meter (820-foot) track, drawn up by Australian
track designer Ron Webb and made of 56 kilometers of Siberian
pine, is “very fast,” Liang Jing of China told reporters. The crowd in the 6,000-seat arena roared whenever British
cyclists took to the track, which was installed by 26 specialist
carpenters over a period of eight weeks. “It was a wall of noise the whole time, and it was only
qualifying in a test event,” Edward Clancy, a team pursuit gold
medalist in Beijing for Britain, told reporters. “I cannot
imagine what it will be like in the Olympics. It was mental. We
had to keep a lid on our emotions.” “It’s a very round track,” Sarah Hammer of the U.S., a
four-time world champion in individual pursuit, said. “You’re
on full gas all the way around.” The World Cup , which provides riders with an opportunity to
qualify for the London Olympics which start on July 27, is also
serving as a test event for the London Olympic organizing
committee. ‘In the Event’ “When you’re inside the velodrome, the lights are great
and you’re so close to the cyclists,” said Fabien Renard, a 40-
year-old visiting from Paris. “It’s great. You’re in the event.
And I’m not even a big cycling fan.” Having a dress rehearsal that involves 340 riders from 48
nations and 18 teams across a four-day competition is
“incredibly valuable” for Olympics organizers, Debbie Jevans,
director of sport for the local organizers, said in an
interview. With 161 days to go before the Games, organizers will test
the track, athlete facilities, results, timing and scoring
systems. It’s also a dress rehearsal for a workforce of 1,000
people. The track cycling competition is the 13th test event out of
24 in total held before the Games. The diving test event will be
held Feb. 20-26 at the Aquatic Centre, which is located a short
walk from the Velodrome. “What we didn’t want to do was to have the athletes, or
the media or the spectators, turn up and having to worry about
stuff,” Jevans said. “So by ensuring that we run the test
events, we can learn from those and come the Games, we know we
are going to get it absolutely right.” Unbelievable Although the track is fast, British Cycling performance
director Dave Brailsford played down expectations of another
record cycling medal haul for Britain in London. “What we did in Beijing was stratospheric and I think the
passage of time will show that that was unbelievable,”
Brailsford said in comments e-mailed by British Cycling earlier
this week. “It’s a great thing to have done and we wouldn’t change
it. But for people who are on the outside looking in, they just
look at it and think it’s an automatic thing - that we just rock
up and win. Of course it’s not like that. Olympic sport is the
only sport where you use a four-year time frame to judge form.” To contact the reporter on this story:
Danielle Rossingh at the Olympic Velodrome through the London
sports desk at drossingh@bloomberg.net To contact the editor responsible for this story: Christopher
Elser at at celser@bloomberg.net | 2012 | op-track-cyclists-ride-wave-to-set-records-at-london-olympic-velodrome |
Iran Offers ‘Readiness’ for Nuclear Talks as It Faces Financial Isolation | By Jonathan Tirone and Nicole Gaouette | 2012-02-17T23:32:04Z | http://www.bloomberg.com/news/2012-02-17/iran-seeks-atomic-talks-at-earliest-possibility-in-letter.html
Iran seeks direct negotiations about
its nuclear program at the “earliest possibility,” the
country’s top nuclear negotiator, Saeed Jalili , wrote in a Feb.
14 letter to Europe ’s foreign policy head Catherine Ashton . As the U.S. and European Union are evaluating the Iranian
message, a bipartisan group of U.S. senators said they are
“extremely concerned” that Iran will “seek to buy time” or
weaken economic sanctions without giving up uranium enrichment
activities that may be used to make the fuel for nuclear
weapons. Separately, the global bank-transfer messaging service
known as Swift said yesterday it is preparing to expel Iranian
financial institutions that are under EU sanctions. The Society
for Worldwide Interbank Financial Telecommunication facilitates
transactions for the global banking industry. “If strictly implemented, this could deny Iran’s banks the
ability to move billions of dollars in financial transactions,
and put immense pressure on Iran’s leaders to reconsider their
policies,” Mark Dubowitz , executive director of the Foundation
for Defense of Democracies, a Washington policy group, said in
an e-mail. Jalili wrote Ashton that “we voice our readiness for
dialogue on a spectrum of various issues which can provide
ground for constructive and forward-looking cooperation,”
according to a copy of the letter obtained by Bloomberg News.
Talks on the nuclear issue should be approached “on step-by-
step principles and reciprocity,” he said in the letter. Next Steps U.S. Secretary of State Hillary Clinton and Ashton said
after meeting at the State Department in Washington yesterday
that they and allies are reviewing the letter to determine next
steps. While Ashton said she was “cautious” and
“optimistic,” they didn’t publicly accept the Iranian offer
for negotiations. The European Union said Feb. 16 that it is studying the
letter, which was written after almost four months in response
to an Oct. 21 EU attempt to revive diplomacy. Iran hasn’t
negotiated with the so-called P5+1 | 2 | 17 | 3cea8232329f4e1893585f69a7d2ee42 | round of talks should be held at a “mutually agreed venue,”
according to the letter. “This response from the Iranian Government is one we’ve
been waiting for and, if we do proceed, it will have to be a
sustained effort that can produce results,” Clinton said. Letter Welcomed The top U.S. diplomat welcomed the letter and described it
as an important step. She said Iran has to be willing to
discuss its nuclear program, “and Iran’s response to Cathy’s
letter does appear to acknowledge and accept that.” Clinton said it might take some time to formulate a
response because it was crucial to maintain unity within the
P5+1 on how to go forward. “It takes time to consult and to do
so in a thorough manner,” she said. “So we need to give time
to our partners in the P-5+1 process to do their own
evaluation.” Ashton said the P5+1 would evaluate where the members left
off when the last round of talks fell apart and “where do we
need to go next.” The P5+1 needs “to be clear what it is we mean to achieve
and what we’re expecting from the Iranians,” Ashton said. “And
that’s what we’re in the process of doing right now.” Senators’ Concerns The bipartisan group of U.S. senators wrote President
Barack Obama Feb. 16 to urge that sanctions be continued and
toughened even if negotiations get under way. Iran ’s willingness
to return to talks “is most likely a direct consequence of this
pressure,” they wrote. Among lawmakers signing the letter were Democrats Robert
Menendez of New Jersey , Chuck Schumer and Kirsten Gillibrand of
New York, and Richard Blumenthal of Connecticut and Republicans
John McCain of Arizona , Marco Rubio of Florida , and Lindsey
Graham of South Carolina . Connecticut independent Joe Lieberman
also signed. “We remain extremely concerned that the Iranian government
will seek to buy time or otherwise dilute the focus of our
diplomacy,” the lawmakers wrote. “We would strongly oppose any proposal that caps or limits
sanctions against the Iranian regime in exchange for anything
less than full, verifiable and sustained suspension of all
enrichment activities, including both 3 percent and 20 percent
enrichment,” they said, referring to the process that could be
used to produce the 90 percent enriched uranium to fuel a
nuclear bomb. U.S.-Israel Talks Amid U.S. concerns that Israel may initiate military action
against Iran’s nuclear sites, the White House said in an e-mail
that National Security Adviser Tom Donilon plans to travel to
Israel from February 18 to Feb. 20 to discuss Iran and other
issues, such as the turmoil in Syria . Israeli Prime Minister
Benjamin Netanyahu is due in Washington to address the American
Israel Public Affairs Committee during the first week of March. UN Secretary-General Ban Ki-Moon said yesterday in Vienna
that Iranian assertions that its nuclear program is peaceful are
unconvincing and that it is up to the government in Tehran to
dispel suspicions about its atomic work. Iran says its nuclear
program is for civilian power and medical research purposes,
although the U.S., Israel and other nations say they suspect
Iran is seeking to acquire the capability to produce nuclear
weapons. Oil Prices Sanctions against Iran have created the conditions for a
negotiated outcome, according to a Feb. 15 New York Times op-ed
article written by Dennis B. Ross, who served two years on the
National Security Council staff as President Barack Obama’s
special assistant on Iran. Oil may rise next week on concern that shipments will be
disrupted as tension between Iran and the West over the
country’s nuclear program increases, a Bloomberg News survey
showed. Fifteen of 37 analysts, or 41 percent, forecast oil will
climb through Feb. 24. Twelve respondents, or 32 percent,
predicted prices will decline and 10 estimated there will be
little change. Last week, 53 percent of surveyed analysts
expected a decrease. Crude oil for March delivery advanced $4.57, or 4.6
percent, to $103.24 a barrel this week on the New York
Mercantile Exchange, the biggest weekly gain this year. Today’s
settlement was the highest since May 10. Prices are up 20
percent in the past year. To contact the reporters on this story:
Jonathan Tirone in Vienna at
jtirone@bloomberg.net ;
Nicole Gaouette in Washington at
ngaouette@bloomberg.net To contact the editor responsible for this story:
John Walcott at
jwalcott9@bloomberg.net | 2012 | iran-seeks-atomic-talks-at-earliest-possibility-in-letter |
U.S. Companies Reporting Midmorning EPS, Feb. 17 | By Wendy Soong | 2012-02-17T16:37:50Z | http://www.bloomberg.com/news/2012-02-17/u-s-companies-reporting-midmorning-eps-feb-17.html | 2 | 17 | 993cda78bcc160054419eb65a6fe4527709e331a | The following table lists the 16 U.S. companies
that reported quarterly earnings today (end date of the quarter is noted in
the last column). Companies are sorted alphabetically by ticker symbol. Earnings estimates provided by Bloomberg.
To contact the reporter on this story:
Wendy Soong in New York at at csoong@Bloomberg.net . To contact the editor responsible for this story:
Alex Tanzi at at
atanzi@Bloomberg.net | 2012 | u-s-companies-reporting-midmorning-eps-feb-17 |
Latvia to Contribute to Bailouts Upon 2014 Euro Entry, FAZ Says | By Jana Randow | 2012-02-17T08:50:23Z | http://www.bloomberg.com/news/2012-02-17/latvia-to-contribute-to-bailouts-upon-2014-euro-entry-faz-says.html | 2 | 17 | 3e03964a0e448077a606becac5abcb7220831841 | Latvia plans to join the euro area
in 2014 and is willing to pay its share in any future bailouts
of indebted nations, central bank Governor Ilmars Rimsevics told
Frankfurter Allgemeine Zeitung in an interview. “I believe that the latest measures in Italy , Spain and
Ireland will be successful but even if new difficulties should
arise, we are willing to make our contribution, even if it is
relatively small,” Rimsevics was quoted as saying. “It would
be naive to think that a crisis in the euro area won’t spread to
neighboring countries.” It was a “big mistake” for Greece to delay adjustment
measures, Rimsevics said. “Unfortunately, there is little
hope” for the country as a result, he said, according to the
newspaper. To contact the reporter on this story:
Jana Randow in Frankfurt at
jrandow@bloomberg.net To contact the editor responsible for this story:
Craig Stirling at
cstirling1@bloomberg.net | 2012 | atvia-to-contribute-to-bailouts-upon-2014-euro-entry-faz-says |
Andy Warhol’s Fontana Painting Boosts $9 Million London Auction | By Scott Reyburn | 2012-02-17T00:00:00Z | http://www.bloomberg.com/news/2012-02-17/andy-warhol-s-fontana-painting-boosts-9-million-london-auction.html
A Lucio Fontana “slashed” canvas
formerly owned by Andy Warhol was the top seller in an auction
that raised $9 million as trademark works by contemporary
artists continued to attract collectors and investors. The 1960 cream-colored “Concetto spaziale, Attese” | 2 | 17 | c9c24f30ed41d657920ecfaa3dd81c023c028374 | million) including fees. It was among 25 lots of contemporary
art offered by Phillips de Pury & Co. in London last night. “Prices are strong,” the Paris-based collector John Sayegh-
Belchatowski said. “The market is deep, not like the fantasy of
2007,” said Sayegh-Belchatowski, who was outbid on the two lots
he hoped to buy. Contemporary art is attracting newer buyers, with many
opting for signature works by well-known artists such as Gerhard Richter , Francis Bacon and Lucian Freud . The Phillips event
followed evening sales at Christie’s International (CHRS) and Sotheby’s (BID)
that took a combined total of 131.3 million pounds with about 90
percent of the lots successful. The Fontana was bought with a single bid from Phillips’s
Moscow-based specialist Svetlana Marich, representing a client
on the telephone. The price with fees equaled the low estimate,
based on hammer prices. The work, with its prestigious
provenance, would have attracted more competition if it hadn’t
been previously offered on the market, dealers said. Slimline Sale Phillips’s auction, described as “a slimline sale of
classics” by Michael McGinnis , the company’s worldwide head of
contemporary art, came at the end of two weeks of contemporary,
Impressionist and modern auctions in the U.K. capital. The
Phillips event raised 5.7 million pounds with just two lots
failing. It had been valued at between 5.2 million pounds and
7.7 million pounds. Four works sold for hammer prices above valuations. Among
these was Cindy Sherman ’s 2003 photographic self portrait,
“Untitled #410,” showing the artist in a clown’s mask and cowboy
hat, which attracted at least four telephone bidders before
selling for 433,250 pounds with fees. It was one of three
guaranteed lots, with an estimate of 200,000 pounds to 300,000
pounds. Warhol himself was represented by a 1974 blue, brown and
orange “Mao” silkscreen painting. This sold for 457,250 pounds
to a telephone buyer against an Asian underbidder in the room.
It had been valued at 300,000 pounds to 500,000 pounds. (Scott Reyburn writes about the art market for Muse, the
arts and culture section of Bloomberg News. Opinions expressed
are his own.) To contact the writer on the story:
Scott Reyburn in London at sreyburn@hotmail.com . To contact the editor responsible for this story:
Manuela Hoelterhoff at
mhoelterhoff@bloomberg.net . | 2012 | andy-warhol-s-fontana-painting-boosts-9-million-london-auction |
SES Says German TV Switch-Off to Weigh on 2012 Earnings Growth | By Chiara Remondini | 2012-02-17T07:54:24Z | http://www.bloomberg.com/news/2012-02-17/ses-says-german-tv-switch-off-to-weigh-on-2012-earnings-growth.html | 2 | 17 | d103c849e4bde9580d8e4639bb6c8f3f2e80ba18 | SES SA (SESG) , the world’s largest publicly
traded satellite operator, said Germany ’s analogue satellite
television switch-off will weigh on 2012 earnings growth. SES forecast recurring revenue and earnings before
interest, tax, depreciation and amortization, which exclude
currency movements and one-time items, to rise by about 2
percent and 1 percent respectively this year, the Luxembourg-
based company said in a statement today. Excluding the analogue
impact, revenue and Ebitda on that basis are both predicted to
rise by about 9 percent this year. “The German switch-off is impacting our guidance,” Chief
Executive Officer Romain Bausch said in an interview. “The
underlying growth trends excluding this one-off impact are
strong and sustainable.” The CEO predicted the German switch-off will cut revenue by
about 73 million euros ($96 million) this year. Recent delays in
satellite launches and solar-array circuit failures are also
affecting the 2012 revenue and Ebitda growth rates. SES said 2011 net income rose 27 percent to 617.7 million
euros because of lower financing charges and taxes. Revenue was
little changed at 1.73 billion euros. Analysts expected profit
of 557.2 million euros and revenue of 1.74 billion euros,
according to the averages of estimates compiled by Bloomberg. To contact the reporter on this story:
Chiara Remondini in Milan at
cremondini@bloomberg.net To contact the editor responsible for this story:
Kenneth Wong at
kwong11@bloomberg.net | 2012 | ses-says-german-tv-switch-off-to-weigh-on-2012-earnings-grow |
‘Singin’ in the Rain’ Splashes Up Storm of Dance: London Stage | By Warwick Thompson | 2012-02-17T00:00:01Z | http://www.bloomberg.com/news/2012-02-17/-singin-in-the-rain-splashes-up-storm-of-dance-london-stage.html | 2 | 17 | 27e18f0205d74fdf9a19a472a8be804e | If you need a shower, sit in the
first five rows at the new show “Singin’ in the Rain.” The famous title sequence drenches the stage of the Palace
Theatre with thousands of gallons of falling water, and Adam
Cooper (in the lead role of silent-movie star Don Lockwood) has
enormous fun kicking it straight into the audience. Though it’s not the first time the 1952 movie (directed by
Stanley Donen and Gene Kelly) about the advent of film talkies
has transferred to the stage, it’s probably the first time it
has been done live with such eye-popping exuberance and detail
in the choreography. Cooper, a former principal with the Royal
Ballet , invests even the smallest move with meaning and emotion.
In proper musical-comedy fashion, he makes it look so easy. Throughout the show, choreographer Andrew Wright references
many of the well-known steps from the film. The sequence in
which the three leads step over a sofa at the end of the number
“Good Morning” is true to the original, even though they use a
park bench rather than a sofa. There’s a lively version of the
“Broadway Melody” ballet, with dancer Ebony Molina doing a
slinky take on the Cyd Charisse vamp role. Some of the numbers are even more generously staged than in
the film. When Don and his friend Cosmo go to a diction coach
(David Lucas) the three of them perform the lively patter-type
song “Moses Supposes.” In the movie, the buttoned-up coach is
merely a stooge: Here he bursts out of his shell and gets as
much to do as the leads. It’s a joy. Risky Backflip Daniel Crossley does a superb turn as the clownish Cosmo,
and his “Make ‘em Laugh” number is packed with clever sight
gags. One disappointment: He doesn’t do the up-the-wall backflip
that Donald O’Connor manages in the film. Since O’Connor was
hospitalized because of it, it’s probably just as well. Scarlett Strallen brings the right note of sweetness and
feistiness to the ingenue role of Kathy Selden, and earns her
hoofer chops in her duets with Cooper. Katherine Kingsley is
hilarious as her nemesis, the egomaniacal and squeaky-voiced
movie diva Lina Lamont. Some fun new lines have been added to the dialogue. “She
can’t sing, she can’t act, and she can’t dance,” says Cosmo of
Lina. “She’s a triple threat.” Director Jonathan Church sets all the action on a studio
film lot, which easily transforms into a sidewalk, an office or
a vaudeville venue as need arises. If it were any slicker it
would slide off the stage. This is an old-fashioned, all-singing, all-dancing delight. Rating: ****. Salty Romp Josie Rourke sets out her stall as new artistic director of
the Donmar Warehouse by staging George Farquhar’s 1706 comedy
“The Recruiting Officer.” It’s a complicated Restoration-style romp, which involves a
girl dressing as a boy to enlist with her recruiting-officer
lover. There are intricately knotted love tangles as subplots. The language is rich and salty, and the subject of amorous
love is never far from the dialogue. “She would have the
wedding before the consummation, and I was for consummation
before the wedding. We could not agree,” says rakish Captain
Plume about his lover Sylvia. Rourke delivers a handsome period-costume production, and a
lively band of musicians intersperses the action with songs and
takes on small roles. Nancy Carroll has a dignity and freshness
as Sylvia, the girl who dresses as a boy, and Mackenzie Crook
brings melancholy humor to the role of the rascal Sergeant Kite. Smirking Fop Good as they are, both are outshone by Mark Gatiss (writer
of and actor in the BBC hit television series “Sherlock”) as
the bewigged and outrageously foppish Captain Brazen. With his
perfectly judged conspiratorial smirks and asides, he plays the
audience like a Stradivarius. For all that, the play’s mannered cynicism and mechanical
plotting become tiresome after a while, and Rourke could have
made cuts. A running time of 2 hours 50 minutes is too long, and
a final note of pathos in a tableau that hints at some of the
real horrors of warfare feels tacked-on. Nevertheless, there’s fun to be had. It looks as if the
Donmar’s in safe hands. Rating: **1/2. “Singin’ in the Rain” is at the Palace Theatre, 109-113
Shaftesbury Avenue, W1D 8AY. Information: +44-844-412-4656 or
http://www.singinintherain.co.uk . “The Recruiting Officer” is at the Donmar Warehouse, 41
Earlham Street, WC2H 9LX. Information: +44-844-871-7624 or
http://www.donmarwarehouse.com . (Warwick Thompson is a critic for Muse, the arts and
leisure section of Bloomberg News. The opinions expressed are
his own.)
To contact the writer on the story:
Warwick Thompson, in London, at warwicktho@aol.com . To contact the editor responsible for this story:
Manuela Hoelterhoff at
mhoelterhoff@bloomberg.net . | 2012 | -singin-in-the-rain-splashes-up-storm-of-dance-london-stage |
French Candidates Need to Keep Focus on Europe’s Crisis: View | By the Editors | 2012-02-17T00:01:14Z | http://www.bloomberg.com/news/2012-02-17/french-presidential-candidates-need-to-keep-focus-on-europe-s-crisis-view.html
President Nicolas Sarkozy ’s
announcement this week that he would seek re-election was hardly
a political thunderclap. It is nonetheless significant: The
campaign, which could result in a transfer of power in Europe ’s
second-largest economy, will inevitably introduce another
element of uncertainty into the continent’s struggles to resolve
the sovereign-debt crisis. As the tumultuous negotiations over the fate of Greece
demonstrate, the debt meltdown continues to threaten the
survival of the single currency, and with it the stability of
the global economy. Riding out the storm | 2 | 17 | 0070afd37ea7488bbfc4aa84bb396da4 | the Elysee Palace this spring. Yet Francois Hollande , the Socialist front-runner in the
polls, has made clear that he plans to take a different approach
than Sarkozy to Europe and the Franco-German push for austerity.
He has said he will demand a review of last month’s European
Union agreement, designed by Merkel and Sarkozy, to tighten
rules on deficits and debt. This posturing, even if Hollande
doesn’t ultimately follow through on it, could feed a simmering
anger in populations across Europe over the painful steps needed
to restore growth and fiscal stability. Tobin Tax In addition, both Sarkozy and Hollande have played to the
crowd by suggesting that outside forces may be to blame for the
economic turmoil. Sarkozy plans to introduce a 0.1 percent levy
on equities and other financial products in August, even if
other European nations don’t follow suit. As we have said
before, this proposal, known as the Tobin tax after its creator,
the U.S. economist James Tobin , is misguided. At worst, it would
have disastrous consequences by curbing growth and, at best, it
would distract from the heavy lifting that needs to be done. For his part, Hollande went off course in his first major
campaign speech last month by designating “big finance” as his
“greatest adversary.” Such populism is all the more unfortunate because both
candidates have otherwise correctly made deficit reduction the
centerpiece of their campaigns. The urgency of such measures was
emphasized last week by the national auditor, the Cour des
Comptes, which said the next president will have to step up
efforts to reduce budget and trade deficits or risk an
“uncontrollable” debt spiral. Adding to the pressure, Standard
& Poor’s stripped France of its AAA credit rating for the first
time on Jan. 13, and this week, Moody’s Investors Service said
it may downgrade France’s top Aaa rating. The concern is justified: Government spending is the
world’s highest at about 56 percent of gross domestic product,
compared with 47 percent in Germany , and Sarkozy has estimated
that last year outlays exceeded revenue by about 5.4 percent. In any case, public debt of 1.69 trillion euros ($2.22
trillion), or 85 percent of GDP, offers little room for
expansionary policies. To meet the Sarkozy government’s target
of cutting the total budget deficit to 3 percent of GDP in 2013
and eliminating it by 2016, France must reduce the shortfall by
1.4 percentage points next year and 0.9 percentage point in each
of the following three years, according to the auditor. And
despite a forecast-beating report Feb. 15 that the economy grew
0.2 percent in the fourth quarter, the risk of recession
remains, with jobless claims jumping by 5.6 percent last year to
a 12-year high of 2.87 million. Deficit Targets Hollande, too, vows to narrow the deficit to 3 percent of
GDP in 2013, from about 7 percent now, and promises a balanced
budget by 2017. In addition, he has proposed increased spending
on education and social programs, which he would pay for by
raising tax rates on investment revenue and high incomes.
Sarkozy’s plan relies on a blend of tax increases and reductions
in labor costs to boost competitiveness. In the remaining nine weeks of the campaign, both
candidates will undoubtedly feel compelled to tell voters more
of what they believe they want to hear. For Hollande, that could
mean tacking to the left with further criticism of the Franco-
German firewall, and rejecting the need for budget cuts or an
overhaul of France’s generous welfare state. (He has already
promised to review Sarkozy’s decision to raise the retirement
age from 60 to 62, still one of the world’s lowest.) Sarkozy,
who will probably face a challenge from the far-right National
Front candidate Marine Le Pen, will be strongly tempted to co-
opt her supporters by adopting some of her anti-immigrant, anti-
globalization message. None of the above would help France address the weaknesses
in its economy, most urgently the need to narrow a trade deficit
that reached a record 69.6 billion euros last year, equivalent
to about 3.5 percent of GDP. That will only be achieved by
increasing competitiveness and reducing the debt load, which in
France, as elsewhere, has become a dangerous drag on growth. The two mainstream candidates should stay focused on making
this case for bitter medicine to the French people. The turmoil
now gripping Greece provides a vivid illustration of the dangers
of complacency. Read more opinion online from Bloomberg View . To contact the Bloomberg View editorial board:
view@bloomberg.net . | 2012 | french-presidential-candidates-need-to-keep-focus-on-europe-s-crisis-view |
Bovespa Index Extends Weekly Gain on Brazil Inflation, Jump in Commodities | By Ney Hayashi | 2012-02-17T20:34:48Z | http://www.bloomberg.com/news/2012-02-17/bovespa-futures-gain-on-lower-inflation-interest-rate-outlook.html | 2 | 17 | dfe1813a94c77ac4a90d387bfa3830f0d3b6ff74 | The Bovespa index added to a weekly
gain as slower Brazilian inflation boosted the outlook for
companies that sell in the local market and higher commodities
prices lifted producers. Cia. Brasileira de Distribuicao Grupo Pao de Acucar ,
Brazil ’s biggest retailer, was the best performer on the gauge
after its fourth-quarter net income of 361 million reais ($210.6
million) exceeded analysts’ forecasts. The MSCI Brazil (MXBR) /Consumer
Staples index jumped the most among 10 industry groups. OGX
Petroleo & Gas Participacoes SA (OGXP3) and Petroleo Brasileiro SA (PETR4)
followed crude higher. The Bovespa climbed 0.1 percent to 66,203.50 at the close
of trading in Sao Paulo, extending the gain this week to 3.4
percent for Brazil’s benchmark equity measure. Forty-one stocks
increased on the gauge today, while 25 fell. The real added 0.1
percent to 1.7139 per U.S. dollar . The Standard & Poor’s GSCI
index of 24 raw materials added 0.4 percent. “We’re seeing very positive signs on the inflation front,
and the central bank will probably take the opportunity to
further lower interest rates ,” Rogerio Freitas, a partner at
hedge fund Teorica Investimentos, said by phone from Rio de
Janeiro . “Economic data released in the U.S. this week were a
little better than expected, which could be a positive sign for
the global economy.” Brazil Inflation Consumer prices in Brazil as measured by the IPCA-15 index
increased 0.53 percent through mid-February, the national
statistics agency said today. The measure was expected to rise
0.56 percent, according to the median forecast of 46 economists
surveyed by Bloomberg. The yield on the Brazilian interest-rate
futures contracts due in January 2013 fell four basis points, or
0.04 percentage point, to 9.18 percent. Pao de Acucar jumped 5.7 percent to 79.20 reais, the
highest since the company’s initial public offering in 1995. Crude climbed as signs of an improving U.S. economy and
progress on a bailout for Greece bolstered the outlook for fuel
demand. The index of U.S. leading indicators rose in January for a
fourth month, signaling the world’s largest economy will keep
expanding through the first half of 2012. A separate report from
the Labor Department yesterday showed applications for
unemployment insurance payments dropped 13,000 in the week ended
Feb. 11 to 348,000. In Europe , officials closed in on a deal to unlock a 130
billion-euro ($171 billion) aid package for Greece, seeking to
avert the region’s first sovereign default. OGX, Petrobras German Chancellor Angela Merkel , Italian Prime Minister
Mario Monti and Greek Prime Minister Lucas Papademos discussed
efforts to secure a second Greek bailout in a conference call
today and are confident that the region’s finance ministers will
“find a solution for open questions” on Feb. 20, Steffen
Seibert, Merkel’s chief spokesman, said in a statement. OGX, the oil company controlled by billionaire Eike Batista, rose 2 percent to 17.65 reais, and Petrobras, as
Petroleo Brasileiro is known, advanced 0.7 percent to 24.05
reais. Lupatech SA (LUPA3) , Brazil’s biggest provider of oil equipment and
services, surged 14 percent to 5.92 reais on speculation it has
become a takeover target. Odebrecht SA, a Brazilian construction
and chemicals conglomerate that also makes oil platforms, is
seeking to buy Lupatech, O Estado de S. Paulo columnist Sonia Racy said on the newspaper’s website today, without saying where
she got the information. Lupatech declined to comment in an e-mailed response to
questions. Odebrecht Oleo e Gas, the oil equipment and services
division of Odebrecht, doesn’t have any “concrete” plans to
make acquisitions at this time, the company said in an e-mailed
response to questions. The company is “constantly studying”
growth opportunities, it said. Relative Value The Bovespa has advanced 17 percent this year, after
slumping 18 percent in 2011, buoyed by Brazil’s interest-rate
cuts, signs of growth in the U.S. and renewed optimism Europe
may be closer to solving its debt crisis. The gauge trades at
10.5 times analysts’ earnings estimates, which compares with a
ratio of 10.6 for MSCI Inc.’s measure of 21 developing nations’
equities, weekly data compiled by Bloomberg Traders moved 6.42 billion reais in stocks in Sao Paulo
today, data compiled by Bloomberg show. That compares with a
daily average of 6.59 billion reais this year through Feb. 7,
according to data from the exchange. To contact the reporter on this story:
Ney Hayashi in Sao Paulo at
ncruz4@bloomberg.net To contact the editor responsible for this story:
David Papadopoulos in New York at
papadopoulos@bloomberg.net | 2012 | bovespa-futures-gain-on-lower-inflation-interest-rate-outlook |
New Mauritius Slides to Two-Month Low on Slower Tourism Bets | By Kamlesh Bhuckory | 2012-02-17T09:32:28Z | http://www.bloomberg.com/news/2012-02-17/new-mauritius-slides-to-two-month-low-on-slower-tourism-bets.html | 2 | 17 | 6b872190061ef81ab70005a299cb426f4523bc4c | New Mauritius Hotels Ltd. (NMH) , the
country’s biggest leisure operator by market value, declined to
its lowest level in more than two months on bets of a weaker
tourism season. The stock retreated for a second day to its lowest intraday
level since Dec. 5, down 2 percent to 74.50 rupees by 12:27 p.m.
in Port Louis, the capital. “Tourism arrivals in January dropped 3 percent, a second
month of decline, which is a cause of concern for the industry
right now,” Kishen Nadassen, senior research analyst at CIM
Stockbrokers Ltd., said in a phone interview from Port Louis.
“Expectations are negative” for the season starting April and
continuing until September, Nadassen said. To contact the reporter on this story:
Kamlesh Bhuckory in Port Louis at
kbhuckory@bloomberg.net . To contact the editor responsible for this story:
Antony Sguazzin at
asguazzin@bloomberg.net | 2012 | new-mauritius-slides-to-two-month-low-on-slower-tourism-bets |
Obama Should Decline to Nominate the Next World Bank Boss: View | By the Editors | 2012-02-17T00:03:39Z | http://www.bloomberg.com/news/2012-02-17/obama-should-decline-to-nominate-the-next-president-of-world-bank-view.html
As soon as the World Bank confirmed
Wednesday that Robert Zoellick will step down as president this
summer, the tussle over who should succeed him began. The Obama administration, abiding by a decades-long custom,
says it expects to name the replacement. That custom has
outlived any semblance of propriety. The White House should
think again. For seven decades it was accepted that a U.S.-nominated
American would lead the World Bank and a European backed by
Europe ’s main powers would head the International Monetary Fund .
This cozy arrangement, always lacking in legitimacy, was once
defensible as a practical matter. It’s telling that nobody any longer even attempts such a
defense. The arrangement is rightly seen as an affront to
Brazil, China , India and the other fast-growing developing
economies. It’s also inimical to the very idea of international
cooperation on terms of mutual respect | 2 | 17 | 6729a6d6b79947a2b3d26ffa48c5014e | lead the search. Secretary of State Hillary Clinton , former Obama economic
adviser Larry Summers and Geithner himself are widely discussed
as possible replacements. All are exceptionally competent, and
have far more relevant experience than the picks of some
previous U.S. administrations. But it should go without saying
that many extremely able candidates are available for the World
Bank job who don’t happen to be American. To exclude them at the
outset is indefensible. Obama should see this as an opportunity not just to appoint
an excellent new leader of the World Bank but also to start a
new chapter in global economic governance. A genuinely open,
merit-based selection not managed by White House officials would
announce a shift from a model in which the U.S. and Europe
preside over lesser nations, to one of more equal partnership.
Obama, more than any other recent U.S. president, has said he
subscribes to that vision. Here’s his chance to prove it. Read more opinion online from Bloomberg View . To contact the Bloomberg View editorial board:
view@bloomberg.net . | 2012 | obama-should-decline-to-nominate-the-next-president-of-world-bank-view |
Expert Networker, BofA, HSBC, JPMorgan, J&J in Court News | By Elizabeth Amon | 2012-02-17T13:41:09Z | http://www.bloomberg.com/news/2012-02-17/mortgage-probe-bank-of-america-exxon-mobil-j-j-in-court-news.html
John Kinnucan, the Broadband
Research LLC founder who said he refused to secretly record a
money manager in a U.S. probe of insider trading, was arrested
in Portland, Oregon, the FBI said. Federal Bureau of Investigation agents arrested Kinnucan at
his home yesterday, Elizabeth Steele, an FBI spokeswoman in
Portland, said in an e-mail. Steele said Kinnucan was in the
Multnomah County Jail awaiting his initial appearance today
before a federal judge. “There is no further information that I can give to you at
this point,” she said. Peter Donald, a spokesman in the FBI’s New York office,
said he expected Kinnucan to be arraigned today in Portland and
eventually be brought to New York to face prosecution. He said
the charges are under seal and he couldn’t discuss the case
further. At least 10 agents wearing FBI jackets arrived at
Kinnucan’s home at 4:19 p.m. yesterday, said a neighbor, who saw
the arrest and didn’t want to be identified because she knows
the family. Kinnucan, wearing a T-shirt and blue jeans and with
his arms handcuffed behind his back, was led away from his house
minutes later by the agents, the neighbor said. Federal prosecutors in New York previously disclosed in
court papers that they had a court-authorized wiretap on
Kinnucan’s mobile phone. Kinnucan, 54, whose public refusal of an FBI request to
wear a wire presaged a dozen insider-trading arrests, said in a
July 8 interview that he expected to be arrested. “Am I a target? Yeah, absolutely,” Kinnucan said in the
interview. “There’s a saying that the government indicts who
they investigate, so I have always assumed that I was a
target.” Kinnucan, who ran the expert networking firm, denied he
ever received illegal tips on companies, and insisted the kind
of information he provided hedge fund clients was publicly
available. Kinnucan’s calls were recorded in talks with Donald
Longueuil, a former SAC portfolio manager, and Level Global
Investors LP co-founder Anthony Chiasson, said prosecutors in
the office of Manhattan U.S. Attorney Preet Bharara. Longueuil was sentenced in July to 2 1/2 years in prison
for his role in an insider-trading scheme. Chiasson pleaded not
guilty Feb. 14 to conspiracy and securities-fraud charges in
federal court in Manhattan. The probe is the biggest insider-trading investigation in a
generation, one that has implicated hedge funds, technology
firms and expert networking firms such as Broadband Research. More than 60 people have been charged with insider trading
in the five-year probe called “Perfect Hedge” by the FBI in
New York and by Bharara’s office. Nathaniel Burney, a New York lawyer who has represented
Kinnucan, said in a phone interview this week that he is no
longer his defense lawyer. The identity of Kinnucan’s current
attorney couldn’t immediately be determined. For more, click here. Lawsuits/Pre-trial Madoff Trustee May Struggle to Undo HSBC Ruling, Lawyers Say The liquidator of Bernard Madoff’s firm asked an appeals
court to reinstate $30 billion of his claims against banks
including HSBC Holdings Plc (HSBA) and JPMorgan Chase & Co. Madoff trustee Irving Picard filed arguments in a federal
appeals court in New York on why district judges Jed Rakoff and
Colleen McMahon were wrong in barring him from demanding damages
from the banks, which include UBS AG (UBSN) and UniCredit SpA. (UCG) He is
challenging two similar rulings made on “solid legal ground,”
said Peter Henning , a former Securities and Exchange Commission
lawyer who teaches at Wayne State University in Detroit. Rakoff in July threw out almost $9 billion in damages that
Picard demanded from HSBC and feeder funds, saying the trustee
can’t sue on behalf of customers, using common-law claims
against parties who had an alleged duty to detect Madoff’s
fraud. Picard demanded $19 billion in damages from the con man’s
banker, JPMorgan, which McMahon also dismissed. “The chances are not good for turning around a ruling on a
matter where the court has substantial discretion,” said
Michael Clark, a lawyer with Duane Morris LLP in Houston who
specializes in financial fraud and has handled appeals. “He has
to show the court misapplied the law in a way that’s beyond a
discretion call. Rakoff is a very bright judge, and he sets out
clearly why he’s ruled.” “The district court’s holding is erroneous,” Picard said
in his filing in the HSBC case. Amanda Remus, a Picard spokeswoman, didn’t respond to an e-
mail seeking comment on the lawyers’ views that overturning the
judges’ rulings would be hard. She has previously said Picard
remains confident of his right to make the claims against the
banks. JPMorgan said it didn’t know about the fraud, or in any way
participate in it, and couldn’t be held responsible for a scheme
orchestrated by Madoff alone. HSBC faulted Picard for his theory that the bank had
obligations to all Madoff investors and should have probed the
fraud. HSBC wasn’t the “watchman” for all the con man’s
investors and didn’t owe them any duty, a lawyer for the London-
based bank said at a court hearing before Rakoff last year in
Manhattan. Madoff, 73, is serving a 150-year sentence in a federal
prison in North Carolina. The main case is Securities Investor Protection Corp. v.
Bernard L. Madoff Investment Securities LLC, 08-ap-1789, U.S.
Bankruptcy Court, Southern District of New York (Manhattan). For more, click here. Bank Mortgage Probes Will Proceed, New York and Delaware Say State and federal officials will aggressively investigate
misconduct in the bundling of mortgages into securities
following a settlement with banks over foreclosure abuses, the
New York and Delaware attorneys general said. The $25 billion agreement announced last week was crafted
to allow further probes of banks to proceed by states and
federal agencies, including inquiries into possible criminal
violations, New York Attorney General Eric Schneiderman and
Delaware’s Beau Biden said yesterday. “We are all committed to pursuing real investigations for
all the areas that we are still able to investigate,
specifically and most importantly on the securitization side,”
Biden said in an interview. “You’re going to see a real effort
on our part and the New York attorney general to pursue the
securitization pieces of this to wherever it takes us.” The Justice Department in January announced the formation
of a joint state-federal group that will investigate misconduct
that led to the financial crisis through the bundling of
mortgage loans into securities sold to investors. The group is
led by officials from the Justice Department, the Securities and
Exchange Commission and Schneiderman’s office. The group will share resources and information,
Schneiderman said in a remarks yesterday at a breakfast
sponsored by Crain’s New York Business. Schneiderman and Biden
have been cooperating in an investigation of bank mortgage
practices. The $25 billion settlement reached with Charlotte, North
Carolina-based Bank of America Corp. , New York-based JPMorgan
Chase & Co ., New York-based Citigroup Inc. (C) , San Francisco-based
Wells Fargo & Co . and Detroit-based Ally Financial Inc (ALLY) . will
provide mortgage relief to homeowners and sets requirements for
how the banks conduct foreclosure and service loans. The banks in return were granted liability releases
protecting them from certain claims. Biden and Schneiderman said
the releases are narrowly tailored to allow further
investigations of bank practices. For more, click here. Bank of America Seeks to Block CEO Deposition in MBIA Suit Bank of America Corp. asked a New York state judge to block
the deposition of Chief Executive Officer Brian T. Moynihan in a
fraud lawsuit brought by MBIA Inc. (MBI) , a court filing showed. The nation’s second-biggest lender, based in Charlotte,
North Carolina, asked New York state Supreme Court Justice
Eileen Bransten in Manhattan to issue a protective order against
the deposition, according to a proposed order to show cause
filed Feb. 15. “We have moved for a protective order because a chief
executive officer of a major corporation may only be deposed
when he or she has unique information that is not available
through other means.” Bank of America spokesman Lawrence
Grayson said yesterday in a statement. “The discovery process
remains fully available to MBIA, including through the numerous
current and former executives that MBIA will be deposing.” The proposed order to show cause asks Bransten to order
MBIA to explain why a protective order against the deposition
shouldn’t be issued. The motion for the protective order wasn’t
immediately available in court records. MBIA, which sued Countrywide in 2008, guarantees payments
to investors that bought securities backed by pools of the
lender’s loans. The insurer says the loans were riskier than
Countrywide promised, and as they defaulted, the Armonk, New
York-based company was forced to make payments. William Sushon, an attorney at O’Melveny & Myers LLP who
filed the proposed order to show cause, didn’t immediately
respond to messages seeking further comment. Manisha M. Sheth,
an attorney with Quinn Emanuel Urquhart & Sullivan LLP who is
representing MBIA, didn’t immediately return a telephone message
left at her office. The case is MBIA Insurance Corp. v. Countrywide Home Loans
Inc., 602825-2008, New York State Supreme Court (Manhattan). Exxon Valdez Judge Refuses to Rule Against More Damage Claims Exxon Mobil Corp. (XOM) failed to persuade a federal judge to bar
the U.S. and Alaskan governments from pursuing further damage
claims related to the 1989 Exxon Valdez oil spill. U.S. District Judge H. Russel Holland in Anchorage refused
Feb. 15 Exxon’s request to enforce a 1991 agreement under which
the Irving, Texas-based company paid $900 million to settle
claims over damage to the environment. “Exxon presently suffers no particular harm,” Holland
wrote in the order. “Its business is not in any fashion
disrupted or impeded because of the uncertainty of a claim by
the governments.” The Exxon Valdez tanker ran aground in 1989, dumping 11
million gallons of oil into Prince William Sound. Exxon agreed
in 2009 to pay $470 million in interest on a $507.5 million
judgment won by local victims of the spill, including fishermen
and small businesses. That was in addition to the $900 million
civil settlement. The civil settlement contains a reopener clause that allows
governments to pursue additional damages. “The possibility of a reopener claim has been ‘on the
table’ since the consent decree was finalized,” Holland wrote. Oil from the spill is still trapped between layers of sand
on the Alaskan shoreline, according to a study published in
Nature Geoscience in 2010. The case is United States of America v. Exxon Corp. 3:91-
cv-0082, U.S. District Court, District of Alaska (Anchorage). BTA Bank Ex-Chairman Gets 22 Months in Prison for Contempt Mukhtar Ablyazov, the former chairman of Kazakhstan’s BTA
Bank, was sentenced to 22 months in a U.K. jail for breaching a
court-ordered freeze on his assets and lying under oath in a $5
billion fraud lawsuit. The violations were “deliberate and brazen” and require
that Ablyazov be placed in immediate custody, Judge Nigel Teare
said yesterday in London . Ablyazov, who fled to Britain to
escape prosecution in his home country, failed to appear at the
hearing. BTA’s lawyer said the ex-banker may be fleeing again. “Mr. Ablyazov has lied to his own lawyers and lied to this
court,” Stephen Smith, a BTA lawyer, said before the
sentencing. “He has had plenty of opportunities to tell us the
truth and has continually evaded doing so.” BTA, the biggest Kazakh lender before defaulting on $12
billion of debt in 2009, filed a series of civil suits against
Ablyazov and ex-Chief Executive Officer Roman Solodchenko
claiming they took more than $5 billion from the Almaty-based
bank using fake loans, back-dated documents and offshore
companies. Both men have denied the claims. Lawyers for BTA, which restructured its debt after being
nationalized, said Ablyazov violated a 2009 court order by
failing to reveal all his assets, including a house in the
British countryside and a London mansion, each valued at 20
million pounds ($31.6 million), two apartments in the U.K.
capital worth 1 million pounds each, and an offshore firm that
allegedly carried out a $300 million fraud against the bank. Ablyazov’s lawyer, Duncan Matthews, said he didn’t know his
client was planning to skip the hearing and there’s no reason to
believe he’s fleeing the country. Teare denied his request to
delay sentencing so he could advise Ablyazov on “the
consequences of his course of action.” “The judgment should serve as a signal to Mr. Ablyazov’s
associates that the full force of the law will be pursued to
ensure court orders are obeyed,” Nikolay Varenko, a deputy
chairman at the bank, said in an e-mailed statement. A call to Ablyazov’s spokesman, Locksley Ryan of RLF
Partnership Ltd. in London, wasn’t answered and an e-mail didn’t
receive an immediate response. For more, click here. For the latest lawsuits news, click here. New Suits U.K. FSA Arrests Legal & General Employee in Trading Probe A Legal & General Investment Management Ltd. employee was
arrested in London and three premises were searched as part of
the U.K. markets regulator’s highest-profile insider-trading
investigation. The man was released on bail after he was interviewed under
caution at a London police station, the Financial Services
Authority said in an e-mailed statement yesterday. The FSA and
the Serious Organized Crime Agency searched an office and home
in London and a residence in Kent, an area southeast of the
British capital. “A 44-year-old man employed by Legal & General Investment
Management was arrested on 16 February and released on bail
pending further enquiries,” the company said in an e-mailed
statement. “We are not aware of any detriment caused to
customers or any impact on our financial results.” The case relates to an insider-trading investigation where
employees from Deutsche Bank AG (DBK) , Exane BNP Paribas and Moore
Capital Management LLC were arrested in March 2010. Those
questioned include Julian Rifat of Moore Capital, Deutsche
Bank’s Martyn Dodgson, Exane’s Clive Roberts, Novum Securities
Ltd.’s Graeme Shelley and Iraj Parvizi, a director at Aria
Capital Ltd. No one has been charged in the case. The FSA conducted further searches in April 2011 and
arrested someone at the time, the regulator said yesterday. The agency is probing whether the men used knowledge of
upcoming securities sales to engage in the front running of
block trades, generally on behalf of a corporate client, to
generate a profit for themselves. The case is codenamed
Tabernula, Latin for “little tavern.” For more, click here. For the latest new suits news, click here. For copies of recent
civil complaints, click here. Trials/Appeals Stanford Operations Run by CFO Davis, Not Boss, Manager Says R. Allen Stanford left daily operating decisions to his
finance chief, who volunteered to “lay himself off” for a
$650,000 lump-sum payout as regulators were closing in on the
company in February 2009, a former manager testified. “We were in the midst of a crisis, and I told him it would
look strange if we lay off our global CFO,” Joan Stack, former
global human resources manager at Stanford Financial Group , said
she told finance chief James M. Davis. “He was the person I
felt made the day-to-day decisions.” Davis replied that he would “stay behind the scenes” and
continue running the firm, Stack told jurors yesterday in
federal court in Houston at Stanford’s criminal fraud trial. In
exchange for appearing to step aside, Davis asked for an upfront
payment of 65 percent of his 2009 salary, she said. Davis made this proposal “at a very fast-moving time”
when “cash flow problems” were causing Stanford’s firm to
cancel 2008 year-end bonuses and lay off half its employees,
Stack testified. “We were trying to get to a point where costs
would be reduced to the point the organization would survive,”
Stack said. Jurors previously heard Davis testify that Stanford was the
mastermind and prime beneficiary of an alleged $7 billion
investment fraud centered on what the government claims were
bogus certificates of deposit at Antigua-based Stanford
International Bank Ltd. Prosecutors accuse Stanford of skimming more than $2
billion of investor deposits to finance an extravagant lifestyle
and risky ventures ranging from Caribbean airlines and real
estate development to cricket tournaments. Investors were told
their funds were kept in safe, liquid assets rather than
speculative ventures. Davis pleaded guilty to his role in the alleged scheme and
testified as a government witness in the trial, now in its
fourth week. “Follow the money,” Davis told jurors, pointing
across the courtroom at Stanford. Stanford, 61, denies wrongdoing in connection with the
alleged investment fraud. If convicted of the most serious
charges against him, he faces as long as 20 years in prison. He
has been jailed as a flight risk since being indicted in June
2009. The criminal case is U.S. v. Stanford, 09-cr-00342, U.S.
District Court, Southern District of Texas (Houston). The SEC
case is Securities and Exchange Commission v. Stanford
International Bank, 09-cv-00298, U.S. District Court, Northern
District of Texas (Dallas). For more, click here. Merger Suits Often Mean Cash for Lawyers, Zero for Investors A shareholder lawyer told a Delaware judge at a midsummer
court hearing two years ago that his team deserved $700,000 for
work on a lawsuit in which his clients received nothing. Shareholders of BJ Services Co., an oilfield-services
company now owned by Baker Hughes Inc., claimed its sale to the
former parent would undervalue their holdings. The settlement of
the case gave investors “crucial” data such as performance
projections for five more years, Shane T. Rowley of Faruqi &
Faruqi LLP told the judge, seeking to justify the legal fees. “I can’t think of fruit that’s closer to the ground,”
Chancery Court Judge John W. Noble responded. Still, the judge
awarded Rowley and his colleagues $500,000 for their efforts. Scenarios like the one played out at the July 2010 hearing
in Wilmington are common in the Delaware court, the chief U.S.
venue for mergers and acquisitions suits, Bloomberg News’ Ann
Woolner, Phil Milford and Rodney Yap report. Of 57 such investor
class actions settled or otherwise concluded there in 2010 and
2011, 40 | 2 | 17 | 09448765fd1048b4929a99cce04f9e14 | but not clients, according to data compiled by Bloomberg News. “The greatest benefit is for the plaintiffs’ attorneys”
in such litigation, said John C. Coffee Jr., a Columbia
University professor who teaches securities law. None of the 10 cases that New York-based Faruqi & Faruqi
helped to settle during the two years produced cash for clients,
according to court records. Legal fees in those 10 cases totaled
$6 million, split among plaintiffs’ firms. Overall, lawyers won $32.4 million for themselves in the 40
cases that generated no money for clients. The lowest legal fee
award was $150,000; the highest was $4 million. The median came
to $512,500, according to the data. The 17 M&A lawsuits that resulted in cash for clients
produced $350 million for the shareholders. The largest, a Del
Monte Foods Inc. case, gave plaintiffs $89.4 million. Of that
amount, attorneys were paid $22.3 million. Even without consistent monetary awards, such lawsuits let
shareholders scrutinize transactions and gain changes in terms,
according to defenders of M&A litigation. Deal-makers, knowing
their work will be closely evaluated by lawyers, produce fairer,
more transparent transactions as a result, he said. The “policing” effects of litigation have “real value,”
Bernard Black, a Northwestern University law and finance
professor who co-wrote an academic study of the Delaware courts,
said. That “might well justify the money we throw at
plaintiffs’ lawyers.” For more, click here. For the latest trial and appeals news, click here. Verdicts/Settlements R.J. Reynolds, Philip Morris Win Federal Jury Trial in Florida Altria Group Inc. (MO) ’s Philip Morris USA and R.J. Reynolds
Tobacco Co. won a defense verdict in a wrongful-death case filed
by the widow of a smoker who died of lung cancer, Altria said. A jury in federal court in Jacksonville, Florida, returned
the verdict for the companies yesterday on the first day of
deliberations, Altria said in a statement. The trial was the
first federal trial of thousands of so-called “Engle” tobacco
injury claims. Virginia Gollihue claimed her husband, Manuel Gollihue,
died from lung cancer at age 53 after smoking at least two packs
a day of the defendants’ cigarettes for almost 38 years. His
illness and death were caused by his addiction to nicotine,
Virginia Gollihue claimed. Gollihue’s suit was the first individual claim by a smoker
tried in a Florida federal court after the state’s supreme court
in 2006 threw out a $145 billion punitive-damage verdict against
the industry and ended a class action filed on behalf of Florida
smokers. The ruling, which permitted smokers in the class to sue
individually, is known as the “Engle” decision, after Howard
Engle, the lead plaintiff in the case. So far, smokers have won 40 of the 58 Engle verdicts in
state court trials, according to Edward L. Sweda Jr., senior
attorney for the Tobacco Products Liability Project, which
tracks the suits. Trials in federal court have been delayed by
pretrial appeals. As of Feb. 13, Philip Morris faced 3,306 Engle cases in
Florida state courts and 3,238 in federal courts, according to
an Altria Securities and Exchange Commission filing . Reynolds is
a defendant in 6,561 cases in state and federal courts combined,
it said in an SEC filing . The jury deliberated for 47 minutes before delivering its
verdict, according to Stephanie Parker, a partner with the Jones
Day (1113L) law firm who represented Reynolds in the trial. In a separate case yesterday, a jury in Oregon state court
issued a $25 million verdict against Philip Morris in a lawsuit
by the family of a woman who smoked low-tar cigarettes and died
of lung cancer in 1999, said Chuck Tauman, the family’s
attorney. The case is Gollihue v. R.J. Reynolds Tobacco Co., 09-
CV-10530, U.S. District Court, Middle District of Florida
(Jacksonville). J&J’s Risperdal Wasn’t Factor in Man’s Diabetes, Jury Rules Johnson & Johnson ’s anti-psychotic drug Risperdal wasn’t a
substantial factor in causing a Nebraska man’s diabetes, even
though J&J failed to give an adequate warning to his doctor
about the drug’s risks, a New Jersey jury ruled. Jurors in state court in New Brunswick, where J&J is based,
found by a 5-1 vote that the company didn’t adequately warn the
doctor for Gary Skala of the risk of diabetes. Because they
ruled 5-1 against Skala, 56, on the causation question, they
didn’t award him any damages. Skala’s lawsuit was the first of more than 400 personal-
injury lawsuits over Risperdal to go to trial. J&J lawyers said
the company properly warned of the drug’s risks after its
introduction in 1994. They said Skala was an obese “couch
potato” whose disease was caused by his weight, his heavy
drinking, his sedentary lifestyle and other risks, not
Risperdal. “The label was adequate, and the information was there,”
J&J attorney Jeffrey Peck told jurors Feb. 15 in his closing
argument. “Doctors used the medicine because it worked. In this
case, Dr. Skala’s doctors prescribed it and it saved his life.” An attorney for Skala, Fletch Trammell, argued to jurors
that Risperdal was a “substantial contributing factor” in his
diabetes by helping to cause his obesity. While the drug may
have helped his mental illness, Trammell said, J&J’s Janssen
unit failed to warn Skala’s doctor of the diabetes risk. Trammell said he was disappointed with the verdict, which
he called a “Pyrrhic victory.” Teresa Mueller, a spokeswoman for J&J, the world’s second-
biggest health-products company, said in an e-mail: “We are
pleased with the jury’s decision to reject the plaintiff’s
claims. Since the early 1990s, Risperdal has improved the lives
of countless people throughout the world who suffer from
debilitating mental illnesses.” The New Jersey case is Skala v. Johnson & Johnson (JNJ) , MID-
L-6820-06 (MT), Superior Court of New Jersey, Law Division,
Middlesex County (New Brunswick). For more, click here. Motorola Solutions’ $200 Million Accord Tentatively Approved Motorola Solutions Inc. (MSI) and a group of investors who sued a
corporate predecessor claiming it misled them about the
company’s prospects in 2006 won a U.S. judge’s tentative
approval of a $200 million settlement. U.S. District Judge Amy St. Eve yesterday preliminarily
signed off on the proposed agreement after hearing from the
parties’ lawyers at the federal courthouse in Chicago. She will
consider a motion for final approval on May 9, after class
members have had an opportunity to file objections. In an August 2007 complaint, Motorola Inc. (MMI) ’s then-Chief
Executive Officer Edward Zander and other executives were
accused of overstating the prospects of the company and its
mobile phone-making unit in the second half of 2006. By 2007,
Motorola was the world’s third-biggest mobile phone maker, down
from second-biggest. Motorola Solutions and lawyers for the stockholders
announced the settlement agreement on Feb. 2. The lead plaintiffs in the case are the Macomb County
Employees’ Retirement System and the St. Clair Shores Police &
Fire Pension System, both of Michigan. The U.S. Justice Department on Feb. 13 approved Motorola
Mobility’s acquisition by Google Inc. (GOOG) for $12.5 billion. The case is Silverman v. Motorola Inc., 07-cv-4507, U.S.
District Court, Northern District of Illinois (Chicago). For the latest verdict and settlement news, click here. To contact the reporter on this story:
Elizabeth Amon in Brooklyn, New York, at
eamon2@bloomberg.net . To contact the editor responsible for this story:
Michael Hytha at
mhytha@bloomberg.net . | 2012 | ortgage-probe-bank-of-america-exxon-mobil-j-j-in-court-news |
Astonishing ‘Blood Knot’; Shatner Phones It In; ‘CQ/CX’: Review | By Jeremy Gerard and Philip Boroff | 2012-02-18T05:01:00Z | http://www.bloomberg.com/news/2012-02-17/astonishing-blood-knot-shatner-phones-it-in-cq-cx-review.html
It’s hard to decide which is more
thrilling: the harrowing revival of Athol Fugard’s powerful
“Blood Knot,” staged by the 79-year-old author. Or the arrival
of the Pershing Square Signature Center , a spectacular three-
theater complex that “Blood Knot” inaugurates. The play concerns two brothers living together in a Port
Elizabeth shantytown in 1961, at the height of apartheid rule in
South Africa . Morris is light-skinned enough to pass as white.
Zachariah is ebony. When Zach returns home from work each day as a guard at a
whites-only park, Morris is there to bathe his ruined feet in
Epsom salts and listen as his brother yearns for the normalcy of
a different life, with the comforts of home and the love of a
woman. It’s not until Zach, against Morris’s stern admonition,
commences a pen-pal relationship with a woman who turns out to
be white, that we realize how horrifyingly dangerous such
yearnings can be in a society that grants its majority
population less freedom than animals. Seismic Poignancy The symbiosis that Scott Shepherd’s Morris and Colman
Domingo’s Zach achieve has a seismic poignancy, building as we
watch both the angels and the demons in their blood work their
way through to the surface. No surprise that Fugard has only
refined the swells and lulls of this sometimes bleakly comic
drama, or that he has limned it with such a gently insinuating
soundscape by Doug Wieselman. Christopher Barreca’s memorably squalid setting | 2 | 17 | dbaead073604414f822153d83f275e9a | from the Times’s hallowed halls. Getting the story right does not compelling drama make.
McKinley represents the Timesmen’s bombast and grandiosity
without getting under the skin where their vulnerabilities lay.
I kept wondering who could possibly be interested in two hours
of inside baseball. Every journalist knows you can get the facts right but the
story wrong. The first clue that McKinley might just be writing
for friends and family is in his title: Those letters refer to
proofreaders’ marks, “CQ” meaning that a fact has been checked
and should not be changed; “CX” meaning “Oops.” “CQ/CX” is
both. (Gerard) Through March 11 at 555 W. 42nd St. Information: +1-212-
279-4200; http//www.ticketcentral.com. Rating: *1/2 (Jeremy Gerard is the chief U.S. drama critic for Muse, the
arts and leisure section of Bloomberg News. The opinions
expressed are his own.) To contact the writer of this column:
Jeremy Gerard in New York at
jgerard2@bloomberg.net . To contact the editor responsible for this story:
Manuela Hoelterhoff at
mhoelterhoff@bloomberg.net . | 2012 | astonishing-blood-knot-shatner-phones-it-in-cq-cx-review |
Wave2Wave Communications Files for Bankruptcy Protection | By Dawn McCarty and Phil Milford | 2012-02-17T20:54:34Z | http://www.bloomberg.com/news/2012-02-17/wave2wave-communications-files-for-bankruptcy-protection-citing-verizon.html | 2 | 17 | db2f7eef69e09fd9223cbea5e18ca7025516ebb9 | Wave2Wave Communications Inc. (WAV) , a
provider of voice and data services to businesses, filed for
bankruptcy, saying access provider Verizon Communications Inc. (VZ)
threatened to cut off its service. The Hackensack, New Jersey-based company listed assets and
debt of as much as $100 million each in Chapter 11 papers filed
today in U.S. Bankruptcy Court in Newark, New Jersey. “In light of the company’s current financial condition and
the threat of Verizon entities to terminate service,”
bankruptcy is in the company’s best interest, Chairman Steven Asman said in the filing. Affiliates RNK Inc. and RNK VA LLC also filed petitions.
Wave2Wave was founded in 1999, the company said in November. The case is In re Wave2Wave Communications Inc., 12-
bk-13896, U.S. Bankruptcy Court, District of New Jersey
(Newark). To contact the reporters on this story:
Dawn McCarty in Wilmington, Delaware, at
dmccarty@bloomberg.net ;
Phil Milford in Wilmington, Delaware, at
pmilford@bloomberg.net To contact the editor responsible for this story:
John Pickering at jpickering@bloomberg.net | 2012 | wave2wave-communications-files-for-bankruptcy-protection-citing-verizon |
Sweden’s Economic Prospects Darken as Borg, Ingves Predict Gloom This Year | By Johan Carlstrom | 2012-02-17T12:43:34Z | http://www.bloomberg.com/news/2012-02-17/ingves-says-swedish-home-prices-may-drop-further-as-growth-slows.html | 2 | 17 | 93cf31dda10093b5551c4b2b158bc893c6d39028 | Sweden’s economy, Europe ’s strongest
as recently as 2010, will hardly grow this year as the crisis
that started in Greece spreads north, killing jobs, sapping
confidence and tipping the housing market into a decline. Swedish Finance Minister Anders Borg announced today the
government will cut the economic growth outlook for 2012 to 0.5
percent from an August estimate of 1.3 percent as exports
falter. Central bank Governor Stefan Ingves said in an interview
house prices may slide further in the largest Nordic economy
after almost halving his economic forecast for the economy. “Judging by the central bank’s outlook, the Swedish
economy has shifted down to a dramatically lower gear,” Anders Kjaer, a senior analyst at Nykredit A/S in Copenhagen, said in a
note. “Growth in the fourth quarter looks to have been
negative.” The central bank yesterday cut its main interest rate a
quarter point to 1.5 percent and abandoned plans to raise rates
through the first quarter of 2013 as it predicted Europe’s debt
crisis will hurt exporters more than first estimated. Sweden,
which grew more than any other European Union economy in 2010,
has been unable to protect its exporters from the fallout of the
debt crisis, prompting the central bank to raise its forecast
for unemployment as trade weakens. “Sluggish growth in the euro area has subdued the demand
for Swedish exports, which slowed down significantly in 2011,”
the bank said yesterday. The weaker outlook means households are
spending less, and companies are delaying investment, it said. Rising Joblessness Unemployment will rise to 7.7 percent this year and stay at
that level until 2014, the bank estimates. The economy will grow
0.7 percent this year, compared with a previous forecast for 1.3
percent, it said. “The Riksbank and the commercial banks estimate around 0.5
percent growth and it’s reasonable to believe that we also end
up around there when we have finished revising,” Borg said. He
expects a recovery to set in next year. Sweden ’s trade surplus shrank to its narrowest in more than
a year in December as exports, which account for about half of
the country’s output, fell for a third month. The 17-nation euro
region shrank at the end of 2011 for the first time since 2009,
as debt woes blunted demand. Sweden suffered a deeper economic contraction in 2009 than
neighboring Norway after the country’s exports fell 12 percent.
Swedish output contracted 5.1 percent that year, versus a 1.8
percent decline in Norway’s economy, adjusting for its oil
income. The average for the world’s industrialized countries was
a 3.8 percent contraction in 2009, the Organization for Economic
Cooperation and Development estimates. Household Indebtedness At the same time, Sweden’s property values are declining
from what Robert Shiller , the co-creator of the S&P/Case-Shiller
home-price index, last month characterized as bubble levels. The
European Union on Feb. 14 said Sweden is under review for
“increasing household indebtedness,” after debt as a share of
disposable incomes rose to a 170 percent last year from about
100 percent in 2000. “It’s not unreasonable to assume that house prices may
fall a bit, or at least park at today’s level,” Ingves said
yesterday in an interview in Stockholm. “The pace of lending is
significantly lower now than before and we have a generally
weaker economic development.” The International Monetary Fund said back in June that
Swedish homes “appear overvalued with enduring price falls
likely.” Property values fell 2 percent last quarter, sliding
from a record that had been fueled by tax cuts, historically low
central bank interest rates and the fastest economic expansion
in four decades in 2010. Ingves said household debt levels remain “manageable”
after borrowing slowed down. To contact the reporters on this story:
Johan Carlstrom in Stockholm at
jcarlstrom@bloomberg.net To contact the editor responsible for this story
Jonas Bergman in Oslo at
jbergman@bloomberg.net | 2012 | ingves-says-swedish-home-prices-may-drop-further-as-growth-slows |
Brazil Juice Makers to Scrap Fungicide Faster After Losses | By Lucia Kassai | 2012-02-17T16:53:35Z | http://www.bloomberg.com/news/2012-02-17/brazil-juice-makers-to-scrap-fungicide-faster-after-losses-1-.html | 2 | 17 | 15461d4a065c830415fbbb4dcc9ace5b6b8772cd | Orange-juice producers in Brazil ,
the world’s largest exporter, will accelerate efforts to phase
out the use of a fungicide banned in the U.S. after losing about
$50 million from rejected shipments this year. The use of carbendazim, which has been banned in U.S.
groves, will be phased out in six to eight months in Brazil,
less than the 18 months previously expected, said Christian
Lohbauer, head of the country’s orange-juice exporters
association CitrusBr. Juice processors will also export more
non-concentrate juice after the U.S. Food and Drug
Administration declined Brazil’s request to raise accepted
levels of the fungicide in concentrate, he said. The U.S. started screening orange-juice imports this year
after the Coca Cola Co., owner of the Minute Maid brand,
reported traces of carbendazim in Brazilian shipments. Juice is
shipped as concentrate from the South American country to reduce
costs by trimming cargo volumes and weight. The process to make
juice concentrate increases the concentration of carbendazim,
Lohbauer said. “If they won’t raise the permitted levels for concentrate,
we will export more of non-concentrate,” Lohbauer said by
telephone from Sao Paulo. The U.S. Food and Drug Administration limits carbendazim to
less than 10 parts per billion in all imports. Brazilian
producers asked the FDA to raise the limit to 60 parts per
billion for concentrates. Rejected Shipments The U.S. has rejected about 25,000 metric tons of juice
from Brazil this year, causing losses because exporters will
resell the cargoes at lower prices and will have higher freight
costs, Lohbauer said. Orange juice producers Sucocitrico Cutrale Ltda, Louis
Dreyfus & Cie SA, Citrovita Agro Industrial Ltda and Citrosuco,
which own plants in Brazil and in the U.S., will also boost
output of juice concentrate in the U.S. to supply the local
market and meet supply contracts, he said. To contact the reporter on this story:
Lucia Kassai in Sao Paulo at
lkassai@bloomberg.net To contact the editor responsible for this story:
Dale Crofts at
dcrofts@bloomberg.net | 2012 | brazil-juice-makers-to-scrap-fungicide-faster-after-losses-1- |
Air Liquide Sees Global Economy Returning to Normal After Pause | By Mark Deen | 2012-02-17T12:19:53Z | http://www.bloomberg.com/news/2012-02-17/air-liquide-sees-global-economy-returning-to-normal-after-pause.html | 2 | 17 | 284f066d06ced374d5a3d3e47245b64f41bb2396 | Air Liquide SA (AI) , the world’s largest
producer of industrial gases, said demand from major
manufacturers is returning to normal after Europe ’s debt crisis
prompted them to hold off investment and draw down inventories. “The past four months can be clearly divided into two
halves,” Air Liquide Chief Executive Officer Benoit Potier told
journalists in Paris today. “In the fourth quarter there was
huge uncertainty and that really weighed on business. China cut
back for three months, waiting to see what would happen in
Europe and China’s role is key.” The euro-area economy shrank in the fourth quarter and
China’s gross domestic product rose at the weakest pace in more
than two years as European policy makers struggled to contain
the sovereign debt crisis. Air Liquide’s own sales slowed then
as like-for-like revenue from gas and services units climbed
1.9 percent, compared with 7.5 percent in the year as a whole. “What was striking was the decisions taken by the big
industrial companies, the makers of steel and electronics, ”
Potier said. “They closed their taps. Now they’re starting to
come back.” Concern about European governments’ ability to pay their
debts has eased since December, when the European Central Bank
began providing three-year loans to banks. The ECB loaned euro-
region banks a record 489 billion euros ($643 billion) for three
years on Dec. 21, adding liquidity and helping borrowing costs
decline for countries including Italy, Spain and France . “Now, very recently, we’re back into normality,” Potier
said. “It’s as if the worry about the euro is behind us. That’s
how we feel it.” To contact the reporter on this story:
Mark Deen in Paris at
markdeen@bloomberg.net To contact the editor responsible for this story:
Craig Stirling at
cstirling1@bloomberg.net | 2012 | air-liquide-sees-global-economy-returning-to-normal-after-pause |
Euro May Fall to Lowest in Two Years on ‘Bear Trend’: Technical Analysis | By Kristine Aquino | 2012-02-17T01:13:35Z | http://www.bloomberg.com/news/2012-02-17/euro-may-fall-to-lowest-in-two-years-on-bear-trend-technical-analysis.html | 2 | 17 | 1cf3f4859ee74f3207c829bdb321718d64cd49b3 | The euro may fall toward its lowest
level in more than two years against the dollar after dropping
below a key support level, Bank of America Corp. said, citing
trading patterns. The 17-nation currency’s slide below $1.3026 yesterday
confirmed its decline through the 21-day moving average and
signals a “larger bear trend,” according to a report by
MacNeil Curry , the bank’s New York-based head of foreign-
exchange and interest-rates technical strategy. “The subsequent close through the 21-day and break of
$1.3026 intra-day pivot points to a resumption of the larger
bear trend targeting $1.2644/$1.2510 area support,” Curry wrote
in the research note published yesterday. Support is where buy
orders may be clustered. The euro traded at $1.3134 as of 9:42 a.m. in Tokyo from
$1.3130 in New York yesterday, when it fell to as low as
$1.2974, the weakest since Jan. 25. The $1.2644 level was last
seen on Jan. 16, when the currency retreated to $1.2626. The
euro last touched $1.2510 on July 6, 2010, when it weakened to
$1.2480. The shared currency’s 21-day moving average was at $1.3137.
Its moving average convergence/divergence, or MACD, was at
0.0036, below the signal line of 0.0045, according to data
compiled by Bloomberg. A reading below the signal line indicates
the euro may decline. MACD is a gauge of momentum and is calculated by
subtracting the 26-day exponential moving average from the 12
day average. The signal line is a nine-day exponential moving
average of the MACD , and provides buy and sell signals. In technical analysis , investors and analysts study charts
of trading patterns and prices to forecast changes in a
security, commodity, currency or index. To contact the reporter on this story:
Kristine Aquino in Singapore at
kaquino1@bloomberg.net To contact the editor responsible for this story:
Rocky Swift at
rswift5@bloomberg.net | 2012 | euro-may-fall-to-lowest-in-two-years-on-bear-trend-technical-analysis |
U.K. Stocks Rise on Greek Bailout Optimism; HSBC, Rio Tinto Gain | By Namitha Jagadeesh | 2012-02-17T17:14:09Z | http://www.bloomberg.com/news/2012-02-17/stocks-rise-on-speculation-of-greek-bailout-accord-hsbc-rio-tinto-gain.html | 2 | 17 | d474cbcdafb34483ada810cddb08a1eb | U.K. stocks rose for the first time
in four days as investors speculated government officials may be
nearing an agreement on a bailout for Greece and the U.S.
economy is recovering. Banks, led by HSBC Holdings Plc (HSBA) , pulled the benchmark FTSE
100 Index higher. Anglo American Plc advanced 1.1 percent after
reporting earnings that beat estimates. BowLeven Plc (BLVN) , a U.K. oil
explorer working in Cameroon, soared 62 percent as Dragon Oil
Plc (DGO) said it is considering a takeover offer. Ashmore Group Plc (ASHM)
fell 1.9 percent after HSBC cut its rating. The FTSE 100 rose 19.69, or 0.3 percent, to 5,905.07 at the
market close in London, extending this week’s increase to 0.9
percent amid optimism Greece will win a bailout and better-than-
expected U.S. economic data. The gauge has climbed 19 percent
from last year’s lowest level on Oct. 4. The FTSE All-Share
Index gained 0.4 percent today, while Ireland’s ISEQ Index added
1.4 percent. “The 5,900 level seems to be holding as the FTSE ends the
week,” said Yusuf Heusen, a sales trader at IG Index in London.
“Broad risk appetite is driving markets higher.” Stocks rallied as investors anticipated the culmination of
a seven-month effort to complete a second Greek bailout. As long
as Greece meets conditions for the aid, euro-area finance chiefs
will probably approve the package along with a debt swap with
private creditors, coalition lawmakers were told by German
officials yesterday. U.S. Economy The index of U.S. leading indicators gained and cost of
living rose less than forecast. The Conference Board’s gauge of
the outlook for the next three to six months increased 0.4
percent in January, following a 0.5 percent rise in December.
The consumer-price index climbed 0.2 percent in January after no
change in December, less than the 0.3 percent average forecast
by economists surveyed by Bloomberg. U.K. retail sales unexpectedly advanced for a second month
in January as discounting at furniture and household-goods
stores lured customers. Sales including fuel rose 0.9 percent
from December, when they added 0.6 percent, the Office for
National Statistics said today in London. Economists had
forecast a 0.3 percent decline, according to the median of 20
estimates in a Bloomberg News survey. A gauge of banking stocks rose 1.1 percent amid speculation
the euro area’s debt crisis may be contained. HSBC, Europe ’s
biggest bank, added 0.7 percent to 577.7 pence. RBS, Lloyds Royal Bank of Scotland Plc rallied 3.2 percent to 27.6
pence, Barclays Plc (BARC) increased 1.4 percent to 248.35 pence and
Lloyds Banking Group Plc (LLOY) advanced 3.1 percent to 35.46 pence. A measure of mining companies climbed 0.3 percent. Vedanta
Resources Plc rose 4.5 percent to 1,312 pence and Xstrata Plc
added 1.6 percent to 1,196 pence. Anglo American gained 1.1 percent to 2,674 pence. The
mining company posted underlying earnings of $5.06 per share,
exceeding the median estimate of $4.75 in a Bloomberg survey of
analysts. BowLeven surged 62 percent to 120 pence, the biggest gain
since March 2009, as Dragon Oil, an oil explorer focused on
Turkmenistan said it is in preliminary talks to make a bid for
the company. Dragon Oil rose 0.6 percent to 547 pence. Spectris Plc (SXS) gained 2.7 percent to 1,705 pence after the
maker of production-testing gear reported an increase in annual
profit and said it’s “strategically well positioned for the
year ahead.” IMI Increases IMI Plc (IMI) added 3.6 percent to 960 pence after the
engineering company bought Brazilian isolation-valve business
Grupo InterAtiva. Ashmore, a U.K. fund manager focused on emerging markets ,
fell 1.9 percent to 390.6 pence after its rating was cut to
“underweight” from “neutral” at HSBC. Tesco Plc (TSCO) dropped 0.8 percent to 317.9 pence as Nomura
Holdings Inc. said the retailer’s introduction of trial
initiatives will “take time to change customer perception and
behavior.” News on the U.K.’s largest grocery chain will
improve “only gradually” in 2012, Nomura wrote. To contact the reporter on this story:
Namitha Jagadeesh in London at
njagadeesh@bloomberg.net To contact the editor responsible for this story:
Andrew Rummer at
arummer@bloomberg.net | 2012 | stocks-rise-on-speculation-of-greek-bailout-accord-hsbc-rio-tinto-gain |
Transaero to Order Six Sukhoi Superjets, Kommersant Reports | By Ilya Khrennikov | 2012-02-17T04:26:39Z | http://www.bloomberg.com/news/2012-02-17/transaero-to-order-six-sukhoi-superjets-kommersant-reports.html | 2 | 17 | 74491f555c8423dbfe1a1248e3c55ee7c78325c6 | OAO Transaero Airlines, the only
Russian operator of Boeing Co. 747 airplanes, plans to order six
mid-range Sukhoi Superjets, Kommersant reported, citing Chief
Executive Officer Olga Pleshakova. Deliveries of the aircraft, which list for $35 million
apiece, will probably start in 2015, the Moscow-based newspaper
said. Transaero is also adding Boeing Dreamliners and Airbus SAS
380 planes. To contact the reporter on this story:
Ilya Khrennikov in Moscow at
ikhrennikov@bloomberg.net To contact the editor responsible for this story:
John Viljoen at
jviljoen@bloomberg.net | 2012 | ransaero-to-order-six-sukhoi-superjets-kommersant-reports |
China Stocks: China International Travel, Harbin Pharmaceutical | By Bloomberg News | 2012-02-17T08:56:03Z | http://www.bloomberg.com/news/2012-02-17/china-stocks-china-international-travel-harbin-pharmaceutical.html
Shares of the following companies
had unusual moves in China trading. Stock symbols are in
parentheses as of the close. The Shanghai Composite Index (SHCOMP) , which tracks the bigger of
China’s stock exchanges, rose 0.32 point, or less than 0.1
percent, to 2,357.18. The CSI 300 Index gained less than 0.1
percent to 2,537.09. Tourism stocks: China International Travel Corp. (601888) (601888
CH), the country’s largest tourism company by market value, rose
1.6 percent to 26.71 yuan. Emei Shan Tourism Co. (000888) (000888 CH)
jumped 3.3 percent to 18.20 yuan. China will encourage local government financial support for
the tourism industry , the listing of industry companies and
support the merger of listed firms, the People’s Bank of China
said in a statement yesterday. It will also help improve payment
and settlement services for the industry, it said. Harbin Pharmaceutical Group Co. (600664) (600664 CH), China’s
biggest drugmaker by sales, fell 4 percent to 7.86 yuan, its
biggest loss since Nov. 30. The company said it may have to pay
$45.5 million in refunds and reported “irregularities” at two
of its units. | 2 | 17 | c8898e528e14648c9ee72ce8abb7b748231ba4f7 | Zhang Shidong in Shanghai at
szhang5@bloomberg.net To contact the editor responsible for this story:
Darren Boey at dboey@bloomberg.net | 2012 | china-stocks-china-international-travel-harbin-pharmaceutica |
Gamestop to J.C. Penney Shut Facebook Stores | By Ashley Lutz | 2012-02-22T14:31:52Z | http://www.bloomberg.com/news/2012-02-17/f-commerce-trips-as-gap-to-penney-shut-facebook-stores-retail.html | 2 | 17 | 1dd524f1905a4f799f1fbc23eb58dfa3 | (Corrects to remove wrongly attributed quote in seventh
paragraph of Feb. 17 story.) Last April, Gamestop Corp. (GME) opened a
store on Facebook to generate sales among the 3.5 million-plus
customers who’d declared themselves “fans” of the video game
retailer. Six months later, the store was quietly shuttered. Gamestop has company. Over the past year, Gap Inc., J.C.
Penney (JCP) Co. and Nordstrom (JWN) Inc. have all opened and closed
storefronts on Facebook Inc.’s (FB) social networking site. Facebook, which this month filed for an initial public
offering, has sought to be a top shopping destination for its
845 million members. The stores’ quick failure shows that the
Menlo Park , California-based social network doesn’t drive
commerce and casts doubt on its value for retailers, said
Sucharita Mulpuru , an analyst at Forrester Research in
Cambridge, Massachusetts . “There was a lot of anticipation that Facebook would turn
into a new destination, a store, a place where people would
shop,” Mulpuru said in a telephone interview. “But it was like
trying to sell stuff to people while they’re hanging out with
their friends at the bar.” A year ago, investors hailed so-called F-commerce as the
next big thing, speculating that the company had potential to
threaten Amazon.com Inc. (AMZN) and PayPal Inc. Facebook is the most-
visited website in the world. Some people thought that
persuading visitors to shop would be easy, Mulpuru said. David Fisch, Facebook’s director of business development,
said in June that the site would make shopping online,
previously a solitary experience, more social. Physical Goods Facebook planned to profit from retailers buying ads to
drive traffic to their on-site stores. Business consultant Booz
& Co. predicted in January 2011 that physical goods sold through
social commerce would balloon to $30 billion from $5 billion by
2015, with Facebook contributing a majority of sales. Even as some businesses shut storefronts, many companies
continue to devote advertising dollars to the social network.
Facebook’s sales surged 55 percent to $1.13 billion in the
fourth quarter. The company aims to use e-commerce more as a way
of getting users to stay longer than as a way to boost revenue,
said Krista Garcia, an analyst at EMarketer Inc. in New York . Chris Kraeuter, a Facebook spokesman, declined to comment. Customers had no incentive to shop at Gamestop (GEM) ’s Facebook
store rather than the company’s regular website because
purchasing online is already convenient, said Ashley Sheetz, who
is the Grapevine, Texas-based company’s vice president of
marketing and strategy. Shut Quickly “We just didn’t get the return on investment we needed
from the Facebook market, so we shut it down pretty quickly,”
Sheetz said in a telephone interview. “For us, it’s been a way
we communicate with customers on deals, not a place to sell.” Gap (GPS) , which has 5.6 million Facebook fans from its namesake,
Banana Republic and Old Navy pages, opened and discontinued a
storefront last year, said Liz Nunan, a company spokeswoman. The
San Francisco-based company also discovered customers preferred
shopping on its own sites, she said. “We will continue to evaluate if this is something we want
to bring back in the future,” Nunan said in an emailed
statement. Nordstrom tested ways to make shopping “seamless through
Facebook” and decided on a broader social media focus, Colin
Johnson , a spokesman, said. J.C. Penney featured assortments in a Facebook “shop” tab
beginning in 2010, and took it down in December 2011, Kate
Coultas, a spokeswoman said in an emailed statement. Cracks in Model Wade Gerten, chief executive officer of social media
developer 8thBridge, previously known as Alvenda, opened a
Facebook store for the florist 1-800-FLOWERS. Minneapolis-based
Gerten went on to develop commerce strategies for Delta Air
Lines Inc. (DAL) , Diane Von Furstenberg Studio LP and denim-maker
Seven for all Mankind. Cracks in the model showed quickly, Gerten said in a
telephone interview. Clients “have taken a different
approach,” shutting stores or scaling back their offerings. “It was basically just another place to shop for all the
stuff already available on the retailer websites,” Gerten said.
“I give so-called F-commerce an ‘F.’” To contact the reporter on this story:
Ashley Lutz in New York at
alutz8@bloomberg.net To contact the editor responsible for this story:
Robin Ajello at
rajello@bloomberg.net | 2012 | f-commerce-trips-as-gap-to-penney-shut-facebook-stores-retai |
Crude Oil Rises to Nine-Month High Amid Optimism on U.S. Economy, Greece | By Mark Shenk | 2012-02-17T21:25:46Z | http://www.bloomberg.com/news/2012-02-17/oil-set-for-biggest-2012-weekly-gain-on-u-s-economy-greek-aid-plans.html | 2 | 17 | cb1005ab1bd84d34a1c04de3e0ebc380 | Oil climbed to a nine-month high in
New York as signs of an improving U.S. economy and progress on a
bailout for Greece bolstered the outlook for fuel demand. West Texas Intermediate crude rose 0.9 percent to cap a
weekly gain of 4.6 percent as the index of U.S. leading
indicators advanced in January for a fourth month. Germany’s
government signaled that finance ministers may be ready to
support a 130 billion-euro ($171 billion) rescue for Greece. “We’ve had a strong week and there’s strong upward
momentum,” said Addison Armstrong , director of market research
at Tradition Energy in Stamford, Connecticut. “The headlines
are what’s driving this market and if they point to a better
economy, prices will rise. It looks like a Greek deal is going
to finally get done.” Oil for March delivery rose 93 cents to $103.24 a barrel on
the New York Mercantile Exchange , the highest settlement price
since May 10. The gain capped the biggest weekly advance since
Dec. 23. Brent oil for April settlement dropped 53 cents, or 0.4
percent, to $119.58 a barrel on the London-based ICE Futures
Europe exchange. The contract touched $120.70, the highest level
since June 15, before slipping. Brent’s premium to April WTI
narrowed $1.49 to $15.98 a barrel. WTI touched $103.57 and is “approaching $103.74, the high
from early January, which is a tempting target,” said Tom Bentz , a director with BNP Paribas Prime Brokerage Inc. in New
York. “Brent is retreating after taking out its old highs.” Leading Indicators The Conference Board’s gauge of the outlook for the next
three to six months increased 0.4 percent. The New York-based
group revised its December change upward to 0.5 percent. Applications (INJCJC) for unemployment insurance payments in the
U.S. dropped 13,000 in the week ended Feb. 11 to 348,000, the
Labor Department said yesterday. The Commerce Department
reported yesterday that U.S. builders broke ground on more homes
than forecast in January and the Federal Reserve Bank of
Philadelphia’s general economic index rose this month. “The U.S. economy is in better shape than had been
feared,” said Eugen Weinberg , the head of commodities research
at Commerzbank AG in Frankfurt. “The current price action is a
liquidity and investment-driven rally on the back of U.S.
economic sentiment and improving equity markets, fueled further
by fears of possible supply cutbacks.” Conference Call German Chancellor Angela Merkel , Italian Prime Minister
Mario Monti and Greek Prime Minister Lucas Papademos discussed a
second Greek bailout on a conference call and are confident that
euro-area finance ministers will “find a solution for open
questions” on Feb. 20, Steffen Seibert, Merkel’s chief
spokesman, said in an e-mailed statement. The European debt crisis that began in Greece has spread to
Ireland, Portugal, Italy and Spain. U.S. fuel demand dropped to the lowest level for January in
17 years, the American Petroleum Institute said. Total
deliveries of petroleum products fell 5.7 percent to 18 million
barrels a day from January 2011. Use of ultra-low-sulfur diesel,
the type used on highways, climbed 4.6 percent. Gasoline use
dropped 0.2 percent. “The U.S. economy is looking pretty strong and a lot of
people are looking for demand to trend along higher, but that
has yet to happen,” said Tim Evans , an energy analyst at Citi
Futures Perspective in New York. “Consumer preferences changed
when gasoline prices surged in 2008 and automakers responded by
making more efficient vehicles. Gasoline is still expensive and
consumers would rather spend their money on something else.” Iran Concern Oil may rise next week on concern that shipments will be
disrupted by tension between Iran and the West over the
country’s nuclear program, a Bloomberg News survey showed.
Fifteen of 37 analysts, or 41 percent, forecast oil will climb
through Feb. 24. Twelve respondents, or 32 percent, predicted
prices will decline and 10 said there will be little change. Iran seeks negotiations about its nuclear program at the
“earliest possibility,” the country’s top nuclear negotiator,
Saeed Jalili , wrote in a Feb. 14 letter to the EU’s foreign
policy head Catherine Ashton . U.S. Secretary of State Hillary Clinton and Ashton, after meeting at the State Department in
Washington, said they and allies are reviewing the letter to
determine next steps. Daily volumes in Brent crude call options above the market
price have risen above 25,000 on four days during the past two
weeks in New York, signaling an increase in bets on a possible
price rally. Electronic trading volume on the Nymex was 679,422
contracts as of 3:19 p.m. in New York. Volume totaled 660,975
yesterday. Open interest was 1.48 million contracts. To contact the reporter on this story:
Mark Shenk in New York at
mshenk1@bloomberg.net To contact the editor responsible for this story:
Dan Stets at
dstets@bloomberg.net | 2012 | oil-set-for-biggest-2012-weekly-gain-on-u-s-economy-greek-aid-plans |
Hungarian Forint Rises to 5-Month High, Extending Weekly Gain | By Andras Gergely | 2012-02-17T16:03:21Z | http://www.bloomberg.com/news/2012-02-17/hungarian-forint-heads-for-5-month-high-extending-weekly-gain.html | 2 | 17 | d604909c25fc2fb269d0dbfe5a69c9588080fa75 | The forint rose to the strongest in
almost five months as demand for riskier assets rose on
speculation Greece will get a second bailout and Hungary will
take steps to need to obtain its own rescue. The currency of Hungary, the European Union’s most indebted
eastern member, appreciated 0.4 percent to 289.9 per euro by 4
p.m. in Budapest, the strongest on a closing level since Sept.
27, capping this week’s 1.5 percent gain. The MSCI Emerging Market Index rallied 1.2 percent as
people familiar with the talks said European officials are
considering cutting interest rates on emergency loans to Greece
and using contributions from the European Central Bank to plug a
new financing gap. Hungary said it has submitted responses to
the European Union’s infringement procedures in three areas
including monetary-policy independence. “Local news has been positive in the past days but it is
primarily the international sentiment which is moving the
market, more specifically the endless Greek story,” Levente Blaho and Adam Keszeg, Budapest-based analysts at Raiffeisen
Bank International AG, wrote in a research report today,
commenting on the forint. While Hungary expects further debate with the EU on its
central bank law, the Cabinet is willing to compromise on the
issue of the judiciary, state-run news service MTI reported late
yesterday, citing Deputy Prime Minister Tibor Navracsics. “Some very favorable news was received from Europe ,
particularly about the Greek rescue, that was clearly what
lifted markets,” Akos Kuti , head of research at Equilor
Befektetesi Zrt., a Budapest-based broker, said by telephone
today. Signs that obstacles to Hungary’s own bailout will be
removed also supported the rally, Kuti said. To contact the reporter on this story:
Andras Gergely in Budapest at
agergely@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at
gserkin@bloomberg.net | 2012 | ungarian-forint-heads-for-5-month-high-extending-weekly-gain |
White House Agreement on Solyndra Testimony Averts Subpoenas | By Brian Wingfield | 2012-02-17T00:30:51Z | http://www.bloomberg.com/news/2012-02-17/white-house-deal-on-solyndra-testimony-averts-subpoenas.html | 2 | 17 | be81a8ed7b43fb4b6b95588efd547012cca2c34e | The White House agreed to let four
officials speak with congressional investigators about Solyndra
LLC’s $535 million U.S. loan guarantee, averting a Republican
attempt to compel their testimony by subpoena. The House Energy and Commerce Committee today said
President Barack Obama’s administration has “agreed to
cooperate” with its investigation of the Fremont, California-
based solar-panel maker that filed for bankruptcy protection in
September, about two years after receiving U.S. backing. The
committee’s investigations panel postponed a meeting tomorrow to
authorize the subpoenas. The committee is seeking information from officials who
worked on the Solyndra loan guarantee including Office of
Management and Budget employees Kevin Carroll, Kelly Colyar and
Fouad Saad, and Heather Zichal , deputy assistant to Obama on
energy and climate-change matters. “Speaking to these key players is critical to learning the
lessons of Solyndra as we work to ensure taxpayers are never
again paying the price for the administration’s risky bets,”
Representatives Fred Upton of Michigan, the committee’s
chairman, and Cliff Stearns of Florida , who leads the
investigations panel, said in a joint statement. Meetings Scheduled The OMB officials have already scheduled sessions with the
committee, the panel said in a statement on its website. In
addition, “the White House has pledged to make the relevant
personnel available,” it said. Republicans had also threatened to subpoena Aditya Kumar,
former deputy assistant to Vice President Joe Biden , who
recently left the federal government. The committee is “still
looking to speak to him,” the panel said on its website. The
committee has also given the White House until Feb. 21 to comply
with a November subpoena for all Solyndra-related documents. Republicans have questioned whether Obama campaign
fundraiser George Kaiser , whose family foundation was Solyndra’s
biggest investor, pressed for the guarantee. Kaiser has said he
didn’t lobby for the loan backing. Congress has been investigating Solyndra for a year, and
“they’ve turned up no wrongdoing,” Eric Schultz , a White House
spokesman, said in an e-mail. The Obama administration has
released 187,000 pages of documents, participated in nine
congressional committee staff briefings and five committee
hearings, and Solyndra investors have provided 72,000 pages of
documents, according to Schultz. “No evidence has emerged” to support Republican claims
that the company received its loan guarantee due to political
favoritism, and “all materials disclosed show this was a merit-
based decision,” Schultz said. To contact the reporter on this story:
Brian Wingfield in Washington at
bwingfield3@bloomberg.net To contact the editor responsible for this story:
Jon Morgan at
jmorgan97@bloomberg.net | 2012 | white-house-deal-on-solyndra-testimony-averts-subpoenas |
U.S. Films Win China Access as Xi Wraps Up Tour With Vow to Boost Imports | By William McQuillen and Alan Ohnsman | 2012-02-18T16:44:43Z | http://www.bloomberg.com/news/2012-02-17/dreamworks-to-own-45-stake-in-entertainment-venture-with-chinese-groups.html
U.S. filmmakers won improved access
to China’s $2.1 billion box-office market in an agreement that
resolves a five-year dispute between the two countries at the
World Trade Organization . The deal, announced yesterday as Chinese Vice President Xi Jinping wrapped up his U.S. visit, will increase the number of
American films shown in China and gives producers such as Walt
Disney Co. (DIS) , Viacom Inc (VIAB) . and Time Warner Inc. (TWX) a “fairer” slice
of ticket receipts, according to a White House statement. Trade dominated the agenda of the visit by Xi, who is
expected to be China’s next leader. The Asian nation is the
second-biggest U.S. trade partner, and two-way commerce rose 10
percent last year to $503.2 billion. Xi’s tour included stops in
Washington for talks with with President Barack Obama ; Iowa ,
where China agreed to buy $4.3 billion of soybeans; and to the
Port of Los Angeles, the biggest entry point for Chinese goods. The movie agreement will support “thousands of American
jobs in and around the film industry,” U.S. Vice President Joe Biden said in the e-mailed statement. Access to China ’s film market has been a point of friction.
The Chinese government last year failed to meet a WTO deadline
to lift restrictions on U.S. movies. The industry is a key
export for the U.S., which enjoys a $12 billion global trade
surplus on films and other audiovisual products, the White House
said. 3-D, IMAX China is one of the world’s fastest growing film markets.
In 2010, the Asia Pacific box office grew by 21 percent, the
Motion Picture Association of America said in February 2011.
China accounted for 40 percent of the growth. In 2011, China’s
box office reached $2.1 billion, the MPAA said yesterday,
without saying what the percentage increase was. Under the agreement, China will ease restrictions on
enhanced formats such as 3-D and IMAX Corp. (IMAX) widescreen
technology, enhance commercial terms for filmmakers and open up
the state’s monopoly on distribution, the White House statement
said. The MPAA said the agreement would let 50 percent more U.S.
films into the Chinese market China, which now allows 20 foreign films into its market
each year, will permit an added 14 enhanced-format films, said
Howard Gantman, a spokesman for the MPAA, which represents
Hollywood’s biggest movie studios. Under the new revenue-sharing
contract, studios will get 25 percent of box-office proceeds, up
from the current 13 percent. ‘Significant Opportunity’ Some Hollywood movies get around the quota if they are
Chinese co-productions or if some filming takes place in the
country. The deal “represents a significant opportunity,” Disney
CEO Robert A. Iger said. Warner Bros. Chairman and CEO Barry Meyer said: “This begins a new era in the history of our
relationship.” While the biggest studios will reap benefits, independent
filmmakers also saw promise in China’s agreement to allow more
local distributors and increase the transparency of its
censorship and importation decisions. “For independents, this agreement is momentous,” Jean Prewitt, president and CEO of the Independent Film & Television
Alliance, said in a statement. The U.S. had complained to the WTO that China was violating
obligations made when it joined the body in 2001. DreamWorks Animation “We will further increase our imports from other
countries, in light of our social and economic development and
consumer demand,” Xi, 58, said at a luncheon yesterday, joined
by Biden and California officials. “We will actively expand
imports from the U.S., including from L.A.” The U.S. exported more than $100 billion of products and
services to China in 2011, Biden said. Xi’s trip also highlighted an announcement that DreamWorks
Animation SKG Inc. (DWA) , creator of the “Kung Fu Panda” films,
formed a venture with Chinese state-owned companies to develop
entertainment projects there. The agreement with China Media Capital (CHMDCZ) and two other groups
will create Oriental DreamWorks. DreamWorks Animation will own
about 45 percent of the company, according to a statement. Oriental DreamWorks will be capitalized with cash and
intellectual property valued at $330 million, the companies
said. China Media Capital (CHMDCZ) , along with Shanghai Media Group (SMGCMZ) and
Shanghai Alliance Investment Ltd. (SALZ) , will own about 55 percent.
They plan to begin operations in Shanghai this year. Villaraigosa, Brown “This is a huge bet for the future for us,” Jeffrey Katzenberg, DreamWorks Animation’s chief executive officer, said
in an interview. “If we succeed, this opportunity is greater
than anything else we could be doing. It’s a long-term bet, but
it is in what unquestionably will be the largest entertainment
market in the world.” DreamWorks Animation, based in Glendale, California, rose
0.9 percent to $19.52 yesterday in New York . The stock has
gained 17.6 percent this year. Los Angeles Mayor Antonio Villaraigosa, who accompanied Xi
on his visit to the city, said China’s ZTE Corp. (000063) telecom company
will expand business there and across California. The city also
plans to open a trade and tourism office in Chongqing, China,
after last year setting up one in Beijing. Obama told Xi China’s yuan remains undervalued relative to
the dollar. The U.S. also disagrees with China’s decision to
veto United Nations Security Council calls for Syrian President
Bashar al-Assad to step down, Biden said. Xi is “absolutely responsive when we disagree | 2 | 17 | bf9abcd3cd9448cebfb67c0112773080 | clear statement of disagreement,” Biden told reporters. California Governor Jerry Brown and Villaraigosa joined Xi
for a tour of China Shipping (1138) (Group) Co.’s Los Angeles cargo
terminal. China Shipping is doubling the size of the facility to
142 acres as part of a $121 million expansion to be completed in
2014. After leaving Los Angeles, Xi flies to Ireland for an
official visit. He then travels to Turkey to meet with Prime
Minister Recep Tayyip Erdogan in Ankara on Feb. 21 before
returning to China. To contact the reporters on this story:
Alan Ohnsman in Los Angeles at
aohnsman@bloomberg.net ;
William McQuillen in Washington at
bmcquillen@bloomberg.net To contact the editor responsible for this story:
Paul Tighe at
ptighe@bloomberg.net | 2012 | dreamworks-to-own-45-stake-in-entertainment-venture-with-chinese-groups |
Credit-Default Swaps in U.S. Little Changed on Greece Outlook | By Dennis Fitzgerald | 2012-02-17T22:00:30Z | http://www.bloomberg.com/news/2012-02-17/credit-default-swaps-in-u-s-little-changed-on-greece-outlook.html | 2 | 17 | 1360d9cef54c89322eba03c1cd0c9b55b7883e46 | A benchmark gauge of U.S. company
credit risk was little changed as European officials moved
toward an agreement on a bailout for Greece , easing concern that
the sovereign-debt crisis will slow the global economy. The Markit CDX North America Investment Grade Index of
credit-default swaps, which investors use to hedge against
losses on corporate debt or to speculate on creditworthiness,
dropped by 0.4 basis point to a mid-price of 98.6 basis points
at 3:59 p.m. in New York, according to Markit Group Ltd. The gauge held as Italian Prime Minister Mario Monti ,
German Chancellor Angela Merkel and Greek Prime Minister Lucas
Papademos expressed optimism that an “agreement on Greece” can
be reached at a Brussels meeting of euro-area finance ministers
on Feb. 20. The three leaders said they were “confident that
the euro group can reach an agreement on Greece on Monday,”
Monti’s office said in an e-mailed statement today. The swaps index, which typically falls as investor
confidence improves and rises as it deteriorates, closed at 94.3
basis points on Feb. 3, the lowest level since July. 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:
Dennis Fitzgerald in New York at
dfitzgerald5@bloomberg.net To contact the editor responsible for this story:
Alan Goldstein at
agoldstein5@bloomberg.net | 2012 | credit-default-swaps-in-u-s-little-changed-on-greece-outlook |
Ireland’s NAMA Says First Fund May Have Less Than $657 Million | By Neil Callanan | 2012-02-17T11:26:50Z | http://www.bloomberg.com/news/2012-02-17/ireland-s-nama-says-first-fund-may-have-less-than-657-million.html | 2 | 17 | 908e29876a54cd1f86fbe6ad24050652a4cf4825 | Ireland’s National Asset Management
Agency said its first fund to allow investment in real estate in
the country and the U.K. will probably have less than 500
million euros ($657 million) of assets under management,
according to a filing by NAMA. Office, retail and other properties may be included in the
fund, NAMA said on Irish government’s procurement website in
response to questions from potential advisers. The fund would
acquire properties that are under receivership, David Clerkin, a
NAMA spokesman, said in January. The funds, known as Qualifying Investor Funds, would be
subject to Irish law. NAMA, based in Dublin, is seeking
investment-management services to help operate the funds,
according to documents posted on the agency’s website. To contact the reporter on this story:
Neil Callanan in London at
ncallanan@bloomberg.net To contact the editor responsible for this story:
Ross Larsen in London at
rlarsen2@bloomberg.net . | 2012 | ireland-s-nama-says-first-fund-may-have-less-than-657-million |
S&P 500 Nears Three-Year High on Optimism | By Rita Nazareth and Michael P. Regan | 2012-02-17T21:29:29Z | http://www.bloomberg.com/news/2012-02-17/asian-stocks-advance-set-for-ninth-weekly-gain-on-u-s-greece-outlook.html | 2 | 17 | b397ac4b7df54d609fd839430565b6ed | U.S. stocks gained, with the
Standard & Poor’s 500 Index approaching a three-year high, while
Treasuries fell and the euro strengthened amid optimism European
leaders will agree on terms for a second Greek bailout. The S&P 500 increased 0.2 percent to close at 1,361.23 at 4
p.m. in New York after coming within a quarter point of touching
a three-year high of 1,363.61 set in April. The Dow Jones
Industrial Average added 45.79 points to 12,949.87, the highest
closing level since May 2008. Ten-year Treasury yields climbed
one basis points to 2.00 percent. The euro increased 0.2 percent
to $1.3151, trimming a rally of as much as 0.5 percent amid
concern that a European Central Bank swap of Greek bonds may
trigger rating cuts. Oil settled at a nine-month high. Italian Prime Minister Mario Monti , German Chancellor
Angela Merkel and Greek Prime Minister Lucas Papademos expressed
confidence today that an agreement on the rescue can be reached
when euro-nation finance chiefs meet on Feb. 20 in Brussels. In
the U.S., the Conference Board’s index of leading economic
indicators rose in January and the cost of living climbed less
than forecast, pointing to sustained economic growth with
limited inflation pressure. “The market is assuming a Greece deal,” Wayne Lin, a
money manager at Baltimore-based Legg Mason Inc., said in a
telephone interview. His firm oversaw $631 billion as of Jan.
31. “I do believe they are getting a second bailout. My
assumption is that Greece will behave rationally.” ‘Better Footing’ Consumer-discretionary, telephone and financial companies
climbed at least 0.6 percent for the biggest gains among 10
groups . Gauges of health-care, utility and technology companies
retreated. U.S. stocks advanced yesterday, driving the S&P 500 up 1.1
percent. The index rose 1.4 percent this week and is up 8.2
percent for the year . A rise above 1,363.61 would take it to the
highest level since June 5, 2008, and may extend the rally,
according to Schaeffer’s Investment Research’s Ryan Detrick . He
said the next target for the S&P 500 would be 1,440, the
intraday peak in May 2008 . “It would be a good sign that confidence is coming back,”
Detrick, senior technical strategist at Schaeffer’s, said in a
telephone interview from Cincinnati. “People are realizing that
things are on much better footing and that should lead to higher
equity prices.” U.S. Movers H.J. Heinz Co. (HNZ) gained 4.6 percent as earnings at the
world’s biggest ketchup maker beat projections. Gilead Sciences
Inc., which bought Pharmasset Inc. for $10.8 billion last year
to gain an experimental hepatitis C drug, dropped 14 percent as
some patients on the medicine relapsed after stopping therapy.
General Mills Inc., the maker of Cheerios cereal and Yoplait
yogurt, slumped 3.6 percent after cutting its profit forecast. The consumer-price index rose 0.2 percent in January after
no change, the Labor Department said today. The 0.4 percent
increase in the Conference Board’s leading economic indicators,
a gauge of the outlook for the next three to six months,
followed a 0.5 percent rise in December, the strongest back-to-
back gains in almost a year. “The fact that the index has been up four months in a row,
and we’ve had solid increases, it does suggest that the economic
momentum continues at a moderate pace,” Kathleen Bostjancic,
director of macro analysis at The Conference Board, said in a
Bloomberg Television interview. “It does look as if those
recession fears we had in August and September are far behind
us.” Euro Strengthens The euro strengthened versus 10 of 16 major peers, climbing
more than 0.5 percent versus the Australian dollar and Japanese
yen. The shared currency trimmed its weekly decline against the
dollar to 0.4 percent. The dollar weakened against 14 of 16
counterparts. Thirty-year Treasuries also fell, sending yields
up one basis point to 3.15 percent. In European bond markets, Italian and Spanish 10-year
yields decreased more than seven basis points. Yields on U.K.,
French and German bonds increased. Greece ’s 10-year rate added 1
percentage point to 34.38 percent, the highest in more than a
month. The Greek government is drawing up legislation that could
be used to impose losses on investors who don’t support the debt
swap that’s part of the country’s bailout, said two euro-region
officials familiar with the situation. The law may be introduced
to parliament in Athens in the coming days, said one of the
officials, who spoke on condition of anonymity because the
deliberations are confidential. Collective Action Clause Euro region finance ministers are prepared to back the use
of so-called collective action clauses if a voluntary debt swap
doesn’t draw enough participation, the other person said. The
ECB is swapping its Greek bonds for new ones to ensure it isn’t
forced to take losses in a debt restructuring, three euro-area
officials said. The Stoxx Europe 600 Index advanced 0.6 percent today to
the highest level since July. Aker Solutions ASA (AKSO) surged 21
percent as Norway ’s biggest oil-platform maker reported net
income that topped estimates. Lafarge SA (LG) jumped 8.3 percent
after the world’s largest cement maker posted better-than-
expected operating profit and unveiled a 400 million-euro ($525
million) cost-cutting plan. Oil in New York climbed 0.9 percent to $103.24 a barrel.
Natural gas rallied 4.6 percent after Encana Corp. (ECA) said it will
scale back production following a slump in prices. Wheat and
lead climbed more than 1.4 percent as 14 of 24 commodities in
the S&P GSCI Index advanced. To contact the reporters on this story:
Rita Nazareth in New York at
rnazareth@bloomberg.net ;
Michael P. Regan in New York at
mregan12@bloomberg.net To contact the editor responsible for this story:
Nick Baker at
nbaker7@bloomberg.net | 2012 | asian-stocks-advance-set-for-ninth-weekly-gain-on-u-s-greece-outlook |
Court Suspends Turk Telekom Retail Internet Move, Group Says | By Ercan Ersoy | 2012-02-17T15:43:47Z | http://www.bloomberg.com/news/2012-02-17/court-suspends-turk-telekom-retail-internet-move-group-says-1-.html | 2 | 17 | 79f76e5d2ab0c0cd84f2e922af3e905ef92caa06 | Turkey ’s top administrative court
ruled that Turk Telekomunikasyon AS (TTKOM) can’t market retail Internet
services in addition to wholesale, upholding an earlier verdict
by the country’s antitrust board. The court suspended the telecommunications regulator’s
decision allowing Turk Telekom to participate in the retail
market, the industry association Telkoder, which filed the case,
said in an e-mailed statement today, citing the top court’s
decision. Turk Telekom rose 0.5 percent to 7.44 liras at the 5:30
p.m. close in Istanbul. The main share index rose 1.8 percent. To contact the reporter on this story:
Ercan Ersoy in Istanbul at
eersoy@bloomberg.net To contact the editor responsible for this story:
Benedikt Kammel at
bkammel@bloomberg.net | 2012 | court-suspends-turk-telekom-retail-internet-move-group-says-1- |
Six U.S. House Replacements Named to Ethics Probe of Waters | By James Rowley | 2012-02-17T23:37:14Z | http://www.bloomberg.com/news/2012-02-17/six-u-s-house-replacements-appointed-to-ethics-probe-of-waters.html | 2 | 17 | 307f3042bf548f24b509ef4e4f97e8798b9764ab | House Speaker John Boehner appointed
six lawmakers to help review ethics allegations against
California Representative Maxine Waters, replacing Ethics
Committee members who disqualified themselves from the case. Waters, a Democrat, is accused of improperly helping a
financially troubled Boston bank, in which her husband owned
stock, seek $50 million of emergency federal assistance during
the financial market crisis in 2008. She would be first in line
to be chairwoman of the Financial Services Committee if
Democrats gain the majority in the November elections. Mikael Moore, Waters’s chief of staff, declined to comment. The appointment of the six temporary Ethics Committee
members was announced on the House floor after the panel’s
chairman, Republican Jo Bonner of Alabama , ranking Democrat
Linda Sanchez of California and four other Republican members
recused themselves from participating in the case. The disqualifications stemmed from a review of Waters’s
allegations of misconduct by two former Ethics Committee staff
lawyers in handling her case, which originated in 2010. In July,
the panel hired Washington attorney Billy Martin to probe
allegations that the lawyers improperly communicated information
about the Waters case to Republican lawmakers. No Evidence of Bias Martin found no evidence of bias or a need for
disqualification by members of the panel, Bonner said in a
letter to Boehner, an Ohio Republican, that was read aloud on
the House floor. Bonner said he and his colleagues were recusing
themselves “out of an abundance of caution and to remove even
the appearance of unfairness.” The temporary replacements are Republicans Bob Goodlatte of
Virginia, Steve LaTourette of Ohio, Mike Simpson of Idaho,
Shelley Moore Capito of West Virginia and Tim Griffin of
Arkansas, as well as Democrat John Sarbanes of Maryland. Besides Bonner and Sanchez, the four members who recused
themselves were Republicans Charles Dent of Pennsylvania , Gregg Harper of Mississippi, and Mike Conaway and Michael McCaul, both
of Texas . To contact the reporter on this story:
James Rowley in Washington at
jarowley@bloomberg.net To contact the editor responsible for this story:
Katherine Rizzo at
krizzo5@bloomberg.net | 2012 | six-u-s-house-replacements-appointed-to-ethics-probe-of-waters |
Kaufman Bros. LP, Investment Bank, Files to Liquidate | By Dawn McCarty | 2012-02-17T21:08:31Z | http://www.bloomberg.com/news/2012-02-17/kaufman-bros-investment-bank-files-for-chapter-7-liquidation-in-new-york.html | 2 | 17 | 891ed496d2a2b3e18f9cc744299a19b546cd8cd5 | Kaufman Bros. LP, the minority-owned
investment bank that helped unwind U.S. stakes in bailed-out
financial companies, filed to liquidate in New York . The company listed both assets and debt of less than $10
million each in Chapter 7 documents filed today in U.S.
Bankruptcy Court in Manhattan. Chapter 7 proceedings let
companies liquidate their assets while being protected from
creditors. Kaufman was founded in 1995 and billed itself as “the
country’s largest minority-owned and operated investment banking
and advisory firm” focused on technology, media,
telecommunications, green technology and health care. The firm
said in June that it helped advisory clients raise more than $50
billion since 1999. The company shuttered operations Jan. 30. Kaufman had
assets of $3.26 million and partners’ capital of $1.21 million
as of Dec. 31, 2010, according to documents filed with
regulators. Kaufman’s website , before it was disabled, said the firm
participated in public offerings of Citigroup Inc. (C) and American
International Group Inc. (AIG) as the U.S. Treasury Department
disposed of stakes accumulated when it bailed out the firms
during the financial crisis. The case is In re Kaufman Bros LP, 12-10664, U.S.
Bankruptcy Court, Southern District of New York (Manhattan). To contact the reporter on this story:
Dawn McCarty in Wilmington, Delaware, at
dmccarty@bloomberg.net To contact the editor responsible for this story:
John Pickering at
jpickering@bloomberg.net | 2012 | kaufman-bros-investment-bank-files-for-chapter-7-liquidation-in-new-york |
Heretic Williams Fled Puritans After War Over God: Lewis Lapham | By Lewis Lapham | 2012-02-18T05:01:00Z | http://www.bloomberg.com/news/2012-02-17/heretic-williams-fled-puritans-after-war-over-god-lewis-lapham.html | 2 | 17 | 0818870209edc6f7f0426b81cb5cc610554440a9 | Fleeing English religious
persecution, in 1631, devout Puritan Roger Williams arrived in
Boston , where he was warmly welcomed. By 1636, convicted by the
General Court of sedition and heresy, he was banished. (To listen to the podcast, click here .) Williams was convinced that “forced worship stinks in
God’s nostrils,” and that the state had no business meddling in
matters of conscience. To provide liberty for the soul, a wall
was needed between church and state. In fact, legitimacy for the
ruler came not from God, but from the ruled. To escape thugs sent to put him on a boat to England , where
he faced arrest, an ailing Williams was forced to flee alone
into the wilderness during a blizzard, getting help during the
freezing winter from American Indians. He went on to found Providence as a uniquely free society,
with no mention of God in its charter, a place so threatening
that for the next century its neighbors tried to wipe it out. I spoke with John M. Barry, author of “Roger Williams and
the Creation of the American Soul,” on the following topics: 1. Legal Influences 2. Religious Freedom 3. Banishment 4. Uniquely Free Providence 5. Broad Legacy To buy this book in North America , click here . ( Lewis Lapham is the founder of Lapham’s Quarterly and the
former editor of Harper’s magazine. He hosts “The World in
Time” interview series for Bloomberg News.) To contact the writer on the story:
Lewis Lapham in New York at
lhl@laphamsquarterly.org . To contact the editor responsible for this story:
Manuela Hoelterhoff at
mhoelterhoff@bloomberg.net . | 2012 | eretic-williams-fled-puritans-after-war-over-god-lewis-lapha |
Three Ships Waiting to Unload Ukraine Grain at Ports in Iran | By Kateryna Choursina | 2012-02-17T12:52:38Z | http://www.bloomberg.com/news/2012-02-17/three-ships-waiting-to-unload-ukraine-grain-at-ports-in-iran-1-.html | 2 | 17 | ccf5cb6526b87304a71cdd5461e203e5911b87b7 | Three ships carrying 70,000 to
80,000 metric tons of Ukraine grain are waiting to unload near
ports in Iran , according to Svitlana Malysh, freight analyst at
UkrAgroConsult. Seven others have changed direction and gone to Saudi
Arabia , Sudan, Qatar and Yemen, Malysh said in a phone interview
today in Kiev. Payments may be made through letters of credit or
some credit accounts and no bartering, she said. The International Atomic Energy Agency said in November
that Iran has studied how to make an atomic bomb. The government
in Tehran says its nuclear program is for civilian purposes. The
U.S. and EU have imposed sanctions restricting petroleum and
non-energy trade and financial transactions in the past three
months to force Iran to give up illicit nuclear activities. There’s no state level restriction on trade between Iran
and Ukraine, Ukrainian Agriculture Minister Mykola Prysyazhnyuk
said Feb. 3. Disruptions to Iran-bound shipments were related to
payments, the minister said. Iranian importers are negotiating possible imports of corn
through Iraq and wheat flour through Turkey , Malysh said.
Traders in Kazakhstan also may supply 1.5 million tons of grain,
mostly barley, to Iran, she said. Iran purchased up to 500,000 tons of wheat this week and
1.1 million tons in the past two weeks for shipment from
February through April, Kiev-based UkrAgroConsult said in e-
mailed statement today. The wheat isn’t from Ukraine, it said. The nation purchased 420,000 tons of German wheat, 300,000
to 360,000 tons of Canadian wheat, 240,000 tons of Brazilian
wheat and 200,000 tons of Australian wheat, UkrAgroConsult said. To contact the reporter on this story:
Kateryna Choursina in Kiev at
kchoursina@bloomberg.net To contact the editor responsible for this story:
Claudia Carpenter at
ccarpenter2@bloomberg.net | 2012 | ree-ships-waiting-to-unload-ukraine-grain-at-ports-in-iran-1- |
Enbridge Falls as Caisse Pension Selloff Revealed: Calgary Mover | By Bradley Olson | 2012-02-17T18:30:09Z | http://www.bloomberg.com/news/2012-02-17/enbridge-falls-as-caisse-pension-selloff-revealed-calgary-mover.html | 2 | 17 | a00eb5518d8767a47f3d29165fef971dcaeace11 | Enbridge Inc. (ENB) fell the most in more
than six months after disclosing that Noverco Inc., which owns
8.9 percent of the Canadian pipeline company, plans to sell a
third of its stake. Enbridge, the largest transporter of Canadian crude to the
U.S., fell 3.9 percent to C$37.66 at 12:02 p.m. in Toronto,
after earlier dropping as much 4.2 percent, the biggest intraday
decline since Aug. 8. Noverco, a holding company that’s 61 percent-owned by
Caisse de Depot et Placement du Quebec , Canada ’s largest pension
fund, plans to sell 22.5 million of its 69.4 million Enbridge
shares. Enbridge owns the other 39 percent of Montreal-based
Noverco. The selloff will result in $300 million for Enbridge,
the Calgary-based company said in a statement. Noverco is selling the shares to rebalance its asset mix,
Enbridge said in the statement. The sale represents 2.9 percent
of Enbridge’s outstanding shares , according to data compiled by
Bloomberg. “The placement of these shares will probably be at a
market discount, and the possibility of shares hitting the
market at a lower price than yesterday has shareholders selling
now,” Steven Paget, an analyst with FirstEnergy Capital Corp.
in Calgary, said in a telephone interview today. Net income at Enbridge climbed 2.8 percent to C$335 million
($336.8 million) or 44 cents a share, from C$326 million, or 43
cents, a year earlier, according to the statement. Excluding
items such as gains and losses from financial contracts, per-
share profit was 37 cents, two cents less than the average of 14
analysts’ estimates compiled by Bloomberg. To contact the reporter on this story:
Bradley Olson in Houston at
bradleyolson@bloomberg.net To contact the editor responsible for this story:
Susan Warren at
susanwarren@bloomberg.net | 2012 | enbridge-falls-as-caisse-pension-selloff-revealed-calgary-mover |
News Corp. Plans Sunday Edition of Sun Tabloid | By Amy Thomson and Tariq Panja | 2012-02-17T17:26:23Z | http://www.bloomberg.com/news/2012-02-17/news-corp-s-rupert-murdoch-said-to-prepare-start-of-sun-on-sunday-tabloid.html
News Corp.’s Rupert Murdoch , whose
U.K. papers have been beset with police and government
investigations into phone hacking and bribery, will start a new
tabloid to replace the disgraced News of the World. Murdoch announced the plans for a Sunday edition of the Sun
tabloid at a meeting with journalists in London today. The staff
had requested an audience with the 80-year-old after a second
round of arrests a week ago into bribery sparked outrage among
journalists at Britain’s best-selling daily newspaper. “We will build on The Sun’s proud heritage by launching
The Sun on Sunday very soon,” Murdoch said today in a memo,
obtained by Bloomberg News. “ Having a winning paper is the
best answer to our critics. I am even more determined to see The
Sun continue to fight for its readers and its beliefs.” The plan for a new Sunday tabloid was unveiled before
legislators publish a report about why News Corp. (NWSA) executives
didn’t stop illegal activities at the British tabloids. The News
of the World was shut in July after reporters were found to have
hacked into the voicemails of politicians, celebrities and
murdered teenager Milly Dowler to get information for tabloid
stories. The company’s Management and Standards Committee, formed by
New York-based News Corp. to assist police in their
investigations of phone-hacking and bribery, has said it handed
over information to aid three police inquiries into bribery,
phone hacking and computer hacking. Trevor Kavanagh, associate
Sun editor, had called the arrests of journalists a “witch
hunt.” News Corp. shares rose 2.1 percent to $19.40 as of 11:59
a.m. in New York trading. ‘Just Cynical’ The closing of the News of the World was “just cynical,”
Chris Bryant , a lawmaker from the opposition Labour Party , who
had sued the News or the World over phone-tapping, said in a
comment on the Twitter microblogging service. Tom Watson , the lawmaker in the British Parliament who is
helping prepare the report that is expected to be critical of
News Corp. executives, said “this will not draw a line under
the crisis faced by News Corp. in the U.K.” Marc Mendoza, chief executive officer of the Media Planning
Group, which places ads in U.K. newspapers, says Murdoch’s plans
show he’s defying conventional rules. ‘Bring It On’ “It would be a brave move,” Mendoza said. Murdoch is
saying, “OK you’ve arrested these journalists, now we’re going
to print seven days a week instead of six. Bring it on.” Murdoch said today that while the company would continue to
aid investigations into the newsroom, he would work to protect
reporters. The ten Sun journalists suspended from their jobs
following their arrests tied to the police investigation into
bribery will be allowed to return and can continue to work
unless they are charged with a crime, he said. News Corp. will
also cover legal expenses for accused reporters until they are
convicted. “Everyone is innocent unless proven otherwise,” Murdoch
said in the memo sent to reporters. “We will continue to ensure
that all appropriate steps are taken to protect legitimate
journalistic privilege and sources, which I know are essential
for all of you to do your jobs.” Murdoch told employees that he will stay in London for the
next several weeks to give staff his “unwavering support.” The
MSC estimates that at least 100,000 pounds ($158,000) was paid
to public officials in the last several years, according to a
person with knowledge of the investigation. His allegiance to the tabloid, which Murdoch has run for
more than 40 years, may alienate other parts of the company,
which see the newspapers as a source of unnecessary controversy,
author Michael Wolff said in an interview on Bloomberg
Television. ‘Off The Reservation’ “Rupert is off the reservation,” said Wolff, an editor at
Vanity Fair and the author of a book on Murdoch. “The company
is both defending the newspaper and prosecuting a newspaper in a
real way.” Murdoch formed the MSC to begin digging through his
employees’ pasts after the 168-year-old News of the World was
shut down. The investigation ultimately widened beyond the News
of the World to News Corp.’s other U.K. titles including the Sun
and the Times. The Times is being investigated by police over
possible computer hacking by a reporter. ‘Evidence’ Following the News of the World closing, Murdoch and his
son James, the former chairman of the U.K. News International
publishing unit and now deputy chief operating officer of News
Corp., had to appear before Parliament to explain how much they
knew. U.K. Prime Minister David Cameron sponsored another
inquisition, led by Judge Brian Leveson, into press ethics that
is ongoing and may lead to new rules to discipline the media. James Murdoch didn’t fly to London this week with his
father as he had other commitments, said a person familiar with
the matter. Sun journalists were treated like members of an “organized
crime gang,” Kavanagh said this week. The National Union of
Journalists has spoken to lawyers about challenging the MSC’s
activities. The committee has interviewed employees and searched
through e-mails and the use of private detectives, looking for
signs of corruption, two people familiar with the investigation
said in October. “We cannot protect people who have paid public officials.
We will turn over every piece of evidence we find | 2 | 17 | 8ab6d7503a154b41ab4bda4d1630e5e0 | because we are obligated to but because it is the right thing to
do,” Murdoch said today. At the same time, “we are doing
everything we can to assist those who were arrested.” To contact the reporters on this story:
Amy Thomson in London at
athomson6@bloomberg.net To contact the editor responsible for this story:
Kenneth Wong at
kwong11@bloomberg.net | 2012 | news-corp-s-rupert-murdoch-said-to-prepare-start-of-sun-on-sunday-tabloid |
Carlyle Said to Lower Fees as It Seeks $10 Billion for New Fund | By Cristina Alesci, Sabrina Willmer and Devin Banerjee | 2012-02-17T05:00:01Z | http://www.bloomberg.com/news/2012-02-17/carlyle-said-to-lower-fees-as-it-seeks-10-billion-for-new-fund.html | 2 | 17 | b2c18c8507ac39e3003f15a761cee6e252911503 | Carlyle Group (CG) , the private equity
firm planning to go public this year, has lowered fees for big
investors as it seeks $10 billion for its next flagship buyout
fund, according to two people with knowledge of the matter. Backers who put up $500 million or more for Carlyle
Partners VI will pay a discounted management fee of 1.1 percent
on committed capital, while smaller investors will be charged as
much as 1.5 percent, depending on the size of their commitment,
said the people, who asked not to identified because the
Washington-based company is private. Carlyle will keep 20
percent of profits as a performance fee. Competitors such as Blackstone Group LP (BX) and KKR & Co. have
also lowered fees or cut special deals to entice larger clients
as buyout firms vie for a shrinking pool of investor dollars.
The success of CP VI is important to Carlyle as it seeks to
convince prospective investors in its initial public offering
that it can continue to increase fee-generating assets. The firm, whose assets have increased ninefold from $16
billion in 2003 to $148 billion at the end of the third quarter,
will begin marketing shares to investors as soon as April. The
amount of management fees Carlyle collects will be closely
watched by potential investors as they offer a more reliable
stream of revenue than fees tied to investment performance . Carlyle reported $683.2 million in fund management fees for
the nine months ended September 2011 and performance fees of
$736.5 million, according to its registration statement. Randall Whitestone, a spokesman for Carlyle, declined to
comment on the new fund. Separate Accounts Big private equity investors are turning to separately
managed accounts to obtain cheaper fees and more control in
exchange for locking up their money for a decade or more. In
December, New Jersey said it will put as much as $1.5 billion
into four custom funds to be managed by Blackstone, which the
state said will save about $120 million in fees. A month
earlier, the Teacher Retirement System of Texas committed $3
billion apiece to KKR and Apollo Global Management LLC. Carlyle
in July struck a deal with the Municipal Employees’ Retirement
System of Michigan to manage as much as $250 million in a
separate account. Co-founded by David Rubenstein , William Conway and Daniel
D’Aniello , Carlyle would be at least the fifth buyout firm to go
public since Fortress Investment Group LLC held an IPO in
February 2007, followed by Blackstone, KKR and Apollo Global
Management. Carlyle, which employs about 1,200 people worldwide, plans
to list its shares on the Nasdaq under the symbol CG. It hasn’t
set a price range or the number of shares it aims to sell. To contact the reporters on this story:
Cristina Alesci in New York at
calesci2@bloomberg.net ;
Sabrina Willmer in New York at
swillmer2@bloomberg.net ;
Devin Banerjee in New York at
dbanerjee2@bloomberg.net To contact the editor responsible for this story:
Christian Baumgaertel at
cbaumgaertel@bloomberg.net | 2012 | carlyle-said-to-lower-fees-as-it-seeks-10-billion-for-new-fund |
Komercni Banka Snaps Three-Day Rout on Greek Accord Speculation | By Krystof Chamonikolas | 2012-02-17T08:59:35Z | http://www.bloomberg.com/news/2012-02-17/komercni-banka-snaps-three-day-rout-on-greek-accord-speculation.html | 2 | 17 | 9c991b28ec52afc70be490523f4d5c30827ea446 | Komercni Banka AS (KOMB) , the Czech unit of
Societe Generale SA that last year took impairment charges on
its holdings of Greek government bonds, snapped a three-day rout
amid speculation Greece will secure a bailout. The stock jumped as much as 3.1 percent and traded up 2
percent to 3,661.5 koruna by 9:47 a.m. in Prague. The Czech
Republic’s PX (PX) gauge of companies, where Komercni Banka has a 17
percent weighting, advanced 1.3 percent. To contact the reporter on this story:
Krystof Chamonikolas in Prague at
kchamonikola@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at gserkin@bloomberg.net | 2012 | komercni-banka-snaps-three-day-rout-on-greek-accord-speculation |
Flaherty Says ‘Optimistic’ on Greece Solution Next Week | By Andrew Mayeda | 2012-02-17T17:09:52Z | http://www.bloomberg.com/news/2012-02-17/flaherty-says-optimistic-on-greece-solution-next-week-1-.html | 2 | 17 | 40efd315b803ac0bf549d1452ff8d3e924e90ff5 | Canadian Finance Minister Jim Flaherty said he is “cautiously optimistic” that Greece’s
efforts to obtain another bailout package will be resolved next
week before a scheduled meeting of Group of 20 policy makers. Flaherty, in an interview with BNN Television from Rome,
said any resolution needs to include a mechanism that will allow
the International Monetary Fund to track progress. “The preferable resolution would be an appropriate
austerity program in Greece properly monitored,” Flaherty said,
after meeting with Italian Prime Minister Mario Monti. “The
alternative is a disorderly exit by Greece from the euro zone.” A European-funded resolution to the crisis needs to be a
condition for any additional help from the IMF, said Flaherty,
after he met with Italian Prime Minister Mario Monti . G-20
finance ministers and central bankers will meet Feb. 25 and Feb.
26 in Mexico City. “They are fully capable, they have the fiscal capacity to
do so, instead of coming to the non-European G20 countries and
asking us to pony up,” Flaherty said. “So the sine qua non is
that Europe moves first.” Flaherty said he will aim to release a fiscal plan before
April 1 that will seek a “balance” between encouraging growth
and reducing the country’s deficit. To contact the reporter on this story:
Andrew Mayeda in Ottawa at
amayeda@bloomberg.net To contact the editor responsible for this story:
Chris Wellisz at
cwellisz@bloomberg.net | 2012 | flaherty-says-optimistic-on-greece-solution-next-week-1- |
Coal Turns Ugly as Gas Cuts Use to 20-Year Low: Energy Markets | By Mario Parker | 2012-02-17T20:31:52Z | http://www.bloomberg.com/news/2012-02-17/coal-turns-ugly-as-tumbling-gas-cuts-demand-to-20-year-low-energy-markets.html | 2 | 17 | 07fb7325ab524183a8b59ea5adbe941a | Coal demand in the U.S. is
collapsing as power companies switch away from the fossil fuel
to take advantage of the cheapest natural gas in 10 years. Use of coal to generate electricity will drop 2 percent
this year to the lowest since 1992, while gas-fired consumption
rises 5.6 percent, according to the Energy Department. Gas
prices have tumbled to the weakest levels since February 2002
this year amid a boom in output and milder-than-normal weather. Appalachian coal, the U.S. benchmark grade, sank 15 percent
in January and is down 26 percent from a 2011 high, prompting
companies from Alpha Natural Resources Inc. to Patriot Coal
Corp. and Arch Coal Inc. to close mines. Natural gas has dropped
31 percent in the past year as higher-than-average temperatures
cut demand and hydraulic fracturing, or fracking, at shale
formations drove inventories to record highs. “It’s very ugly,” J. Christopher Haberlin, a Richmond,
Virginia-based analyst at Davenport & Co., an investment
brokerage, said by phone on Feb. 15. “Gas is a major driver and
the oversupply there has been well documented, but adding to the
pain is the unseasonably mild winter we’re having.” Gas costs for power plants plunged to the equivalent of
$1.16 per million British thermal units less than coal on Jan.
19, the biggest discount since coal futures began trading in
2001, according to data compiled by Bloomberg News. The
difference was 72.7 cents per million Btu as of 1:41 p.m. in New
York . Coal was at $58.95 a ton on the New York Mercantile
Exchange yesterday. Natural gas for March delivery rose 4.6
percent to settle at $2.684 per million Btu today in New York. Declining Demand Arch, the second-largest U.S. producer, said Feb. 10 that
coal used to generate power may drop by at least 50 million tons
this year. The company is reducing output at the Dugout Canyon
mine in Utah in the first half of the year. Patriot said this month that it will shut its Big Mountain
complex in West Virginia , which produced 1.8 million tons of
coal last year. Alpha plans to idle six operations between
February and early 2013, it said this month, and will alter work
schedules and cut production crews at some of its other mines,
citing weak demand. Spokesmen for Arch, Alpha and Patriot didn’t return
telephone messages left yesterday for comment. U.S. natural-gas prices are in a “stable” range that is
low enough to encourage power generators to switch from coal in
the Powder River Basin, which holds the largest and least
expensive U.S. coal reserves, according to Goldman Sachs Group
Inc. Still, gas prices are high enough to keep producers from
cutting production, David Greely , Goldman’s head of energy
research in New York, wrote in a note dated yesterday. Spurring Substitution “While low Nymex natural-gas prices are motivating Powder
River Basin coal-to-gas substitution, power generation demand
for natural gas has also increased in other regions of the
country, resulting in very strong overall demand from power
generators so far this year,” Greely said. Total coal consumption for the week ended Feb. 16 was down
4.3 percent from a year earlier, according to Genscape Inc., a
Louisville, Kentucky-based data provider, which monitors coal
use by power producers with devices installed at the plants. Utilities may have about 168.4 million tons of coal in
inventory at the end of this year, the lowest level since 2008,
Energy Department data show. Gas production in the lower 48 U.S. states rose 1.3 percent
in November to a record 72.61 billion cubic feet a day, driven
by gains in states that contain shale reserves, the Energy
Department said Jan. 30 in its monthly EIA-914 report. Supplies
for the week ended Feb. 10, were about 38 percent above the
five-year average. Warmest January The average temperature in the contiguous U.S. for January
was 36.3 degrees Fahrenheit (2.4 degrees Celsius) or 5.5 degrees
above the 1901-2000 average, making it the warmest January since
2006 and the fourth-warmest on record, according to the National
Oceanic and Atmospheric Administration , curbing demand for
heating fuels. Utilities and electricity transmission organizations that
have both coal and gas plants in their portfolios are relying
more on the cheaper fuel to produce power, said Christopher Peterson , lead industry economist for the Office of Energy
Statistics at the Energy Information Administration, a unit of
U.S. Energy Department. Power Generation Coal accounts for about 45 percent of electricity
generation, while gas totals about 24 percent, Energy Department
data show. Use of coal for power generation will drop this year to
916.4 million tons, the smallest amount since 1992, according to
the Energy Department. Gas-fired power production will increase
5.6 percent as electricity demand rises just 0.4 percent, the
department said in an outlook report on Feb. 7. “It’s not the best-kept secret in the world that gas is
hurting coal burn,” Mike Dudas, an analyst at Sterne Agee &
Leach Inc., a Birmingham, Alabama-based brokerage, said by phone
on Feb. 15. “One thing that’s not going to help coal is 40-
degree weather in Chicago in February.” Coal is unlikely to receive a boost from foreign demand as
it did last year as economies in Europe struggle to stave off a
recession amid rising debt, Haberlin said. Exports are expected
to fall 8.7 percent to 97.6 million tons this year from 107
million in 2011, which was the highest level since 1991,
according to Energy Department data . Foreign Sales Europe was the largest buyer of U.S. coal last year through
September, accounting for about 50 percent of exports, according
to the most recent data from the Energy Department. The region’s
economy shrank 0.3 percent in the fourth quarter from the prior
three months, the first contraction since the second quarter of
2009, the European Union’s statistic office in Luxembourg said
Feb. 16. “The one real window of support has closed,” Lucas Pipes,
an analyst at Brean Murray Carret & Co. in New York, said in a
phone interview. “You’re really not making money selling
thermal coal right now.” Utilities are also switching to gas from coal because of an
impending government rule that calls for Texas and 26 eastern
states to cap sulfur dioxide to limit acid rain and soot. Shutting Down The rule, combined with the declines in gas prices, may
force utilities to close about 12 percent of the nation’s coal-
fired generating capacity, according to IHS CERA, an Englewood,
Colorado-based provider of energy data. American Electric Power Co. (AEP) and Southern Co. (SO) are among
power producers that plan to boost gas-fired output at the
expense of coal. Dominion Resources Inc. said Jan. 27 that it
would convert three of its coal units to burn wood. “Our newest combined-cycle natural gas plants are
dispatching before any of our coal plants,” Duke Energy Corp.
Chief Executive Officer Jim Rogers said at a conference in New
York on Feb. 15. “We don’t see building another coal plant for
two to three decades.” Mining costs to dig thermal coal out of the ground range
from $65 to $75 a ton for a Central Appalachian coal producer,
Levin said, as much as 27 percent more expensive than the
current price. “It’s very difficult for a producer of steam coal to make
money in this environment,” Levin said. “There simply isn’t
demand for utility coal. Why would you continue to run?” To contact the reporter on this story:
Mario Parker in Chicago at
mparker22@bloomberg.net To contact the editor responsible for this story:
Dan Stets at dstets@bloomberg.net | 2012 | coal-turns-ugly-as-tumbling-gas-cuts-demand-to-20-year-low-energy-markets |
Belarus Extends Offer of MTS Venture Stake After Failed Auctions | By Aliaksandr Kudrytski | 2012-02-17T14:26:28Z | http://www.bloomberg.com/news/2012-02-17/belarus-extends-offer-of-mts-venture-stake-after-failed-auctions.html | 2 | 17 | 1b191affe77cebf227ffdfb56308535ba36d508c | Belarus is extending its offer to
sell a 51 percent stake in its joint venture with OAO Mobile
TeleSystems (MTSS) , Russia ’s largest mobile-phone operator, for $1
billion after two failed auctions last year. “There are more than a couple of potential buyers showing
interest, but they begin to hesitate as soon as it comes to
discussing the price,” Georgy Kuznetsov, chairman of the
country’s State Property Committee, told reporters today in the
capital, Minsk. The authorities may offer a potential investor to pay $1
billion in several installments over a period of time instead of
making a lump sum payment, Kuznetsov said. To contact the reporter on this story:
Aliaksandr Kudrytski in Minsk, Belarus at
akudrytski@bloomberg.net To contact the editor responsible for this story:
Balazs Penz at
bpenz@bloomberg.net | 2012 | belarus-extends-offer-of-mts-venture-stake-after-failed-auctions |
Access Bank of Nigeria Rises Fourth Day, Gains by Daily Limit | By Vincent Nwanma | 2012-02-17T12:11:52Z | http://www.bloomberg.com/news/2012-02-17/access-bank-of-nigeria-rises-fourth-day-gains-by-daily-limit.html | 2 | 17 | 455ee853bb89e19798af60861b1ed83c8c3acea5 | Access Bank Plc (ACCESS) , Nigeria ’s fifth
biggest lender by market value, rose for a fourth day, gaining
by the daily limit of 5 percent, to 6.75 naira by 12:52 p.m. in
Lagos. A close at this price will be its highest since Aug. 4. To contact the reporter on this story:
Vincent Nwanma in Lagos at
vnwanma@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at
gserkin@bloomberg.net | 2012 | access-bank-of-nigeria-rises-fourth-day-gains-by-daily-limi |
EU Weighs Letting Countries Refuse Credit Ratings, Welt Reports | By Naomi Kresge | 2012-02-17T15:55:24Z | http://www.bloomberg.com/news/2012-02-17/eu-weighs-letting-countries-refuse-credit-ratings-welt-reports.html | 2 | 17 | fd913bd49b7125e0f5c97facb1bbeba39cd5ce7c | The European Parliament may allow
member countries to refuse reviews by credit-ratings agencies,
Die Welt reported, citing a draft of a proposed resolution. “Ratings agencies should be forbidden from publishing
noncommissioned credit ratings,” the newspaper cited the
resolution draft as saying in an e-mailed preview of an article
to be published tomorrow. Leonardo Domenici, an Italian member of the parliament,
plans to introduce the resolution at the end of February, Welt
reported. To contact the reporter on this story:
Naomi Kresge in Berlin at
nkresge@bloomberg.net To contact the editor responsible for this story:
Phil Serafino at
pserafino@bloomberg.net | 2012 | eu-weighs-letting-countries-refuse-credit-ratings-welt-reports |
Russia to Set Maximum Grain Prices Within a Month, Ministry Says | By Marina Sysoyeva | 2012-02-17T15:25:08Z | http://www.bloomberg.com/news/2012-02-17/russia-to-set-maximum-grain-prices-within-a-month-ministry-says.html | 2 | 17 | 7c7ff785244e9c1eac1265e222aee978fc99b7da | Russia ’s government will approve
within a month a range of maximum grain prices that would
trigger sales from state reserves if breached in the
market, Dmitry Bobkov, the Agriculture Ministry spokesman, said
today by phone. The maximum price for third-grade and fourth-grade milling
wheat from the 2005 harvest would be 5,000 rubles ($167) and
4,500 rubles a metric ton respectively, according to a draft
order on the ministry’s website. The maximum for third-grade milling wheat harvested in 2008
will be 6,050 rubles to 7,550 rubles a ton in the European part
of Russia, depending on the region. Prices for the 2009 crop can
be as much as 6,050 rubles in the European part of the country
and 6,600 rubles in the Asian area. The maximum for fourth-grade milling wheat from the 2008
crop will be 5,400 rubles to 7,150 rubles in the European area.
The 2009 crop can be sold at 5,400 rubles in the European sector
and 5,300 rubles in Asian territories, according to the draft
order. Prices for 2008-harvest feed wheat can be 4,550 rubles to
6,000 rubles. Feed barley from the same year can be 4,550 rubles
a ton across the country. Milling rye harvested in 2008 and 2009 can be 4,300 rubles
for the entire country, according to the draft. State grain stockpiles in the so-called intervention grain
fund are 6.7 million tons, Andrei Sizov Jr., managing director
of SovEcon, said by phone in Moscow today. That doesn’t include
372,465 tons of wheat harvested in 2011 bought by the government
from farmers so far this year, Sizov said. To contact the reporter on this story:
Marina Sysoyeva in Moscow at
msysoyeva@bloomberg.net To contact the editor responsible for this story:
Claudia Carpenter at
ccarpenter2@bloomberg.net | 2012 | russia-to-set-maximum-grain-prices-within-a-month-ministry-says |
Warm Temperatures in Eastern U.S. May Mean Less Energy Consumed | By Brian K. Sullivan | 2012-02-17T13:22:23Z | http://www.bloomberg.com/news/2012-02-17/warm-temperatures-in-eastern-u-s-may-mean-less-energy-consumed.html | 2 | 17 | 32835a5f40e83628d9f5d97181d7cb6da34953be | Mild weather may mean less energy is
needed to heat homes and businesses in the eastern U.S. next
week, said David Salmon , owner of Weather Derivatives. Temperatures from the northern Great Plains to the western
Great Lakes, including Chicago, are expected to be about 6
degrees Fahrenheit (3.3 Celsius) above normal from tomorrow
through Feb. 24, Salmon said. Temperatures will range from 2 to
6 degrees above normal across the rest of the East. Energy use from the Mississippi River Valley to the
Northeast and mid-Atlantic states will probably be about 20
percent below normal during the period, and even lower along the
Gulf of Mexico, said Salmon. Traders watch temperature predictions to gauge demand for
natural gas, heating oil and electricity. Weather in the eastern
U.S. affects energy use more because the population density is
higher than in the West. About 51 percent of U.S. households use
natural gas for heating, the Energy Department says. A storm bringing rain and snow showers this weekend to the
mid-Atlantic region may send high temperatures down into the
mid-30s and lows into the 20s in Washington , according to the
National Weather Service. Chicago will have highs in the 30s and
partly cloudy skies this weekend. New York may be warmer, with temperatures near 50 tomorrow
and 40 to 45 though the middle of next week, according to Rob Carolan, a meteorologist with Hometown Forecast Services in
Nashua, New Hampshire . Mild in East Mild weather is expected to remain in the East through Feb.
26, according to a 6- to 10-day outlook from Matt Rogers ,
president of Commodity Weather Group LLC in Bethesda, Maryland . Frigid air will cover most of Canada and the western U.S.
from Feb. 27 to March 2, according to Rogers’s 11- to 15-day
forecast. “It appears that it will weaken rapidly as it races
eastward,” Rogers said in a note to clients. The normal average temperature in New York on Feb. 22 is 37
degrees, according to MDA EarthSat Weather in Gaithersburg,
Maryland. It’s 33 in Boston ; 38 in Philadelphia; 49 in Atlanta;
30 in Chicago; 52 in Dallas; 44 in Seattle; and 57 in Burbank,
California. To contact the reporter on this story:
Brian K. Sullivan in Boston at
bsullivan10@bloomberg.net To contact the editor responsible for this story:
Dan Stets at
dstets@bloomberg.net | 2012 | warm-temperatures-in-eastern-u-s-may-mean-less-energy-consumed |
Equity Bank Expects to Break Even in Rwanda Within Three Years | By Saul Butera | 2012-02-17T13:13:40Z | http://www.bloomberg.com/news/2012-02-17/equity-bank-expects-to-break-even-in-rwanda-within-three-years.html | 2 | 17 | f8da660493dc40aa7000de45e8e658aa0be5fb57 | Equity Bank Ltd. (EQBNK) , Kenya ’s biggest
bank by customers, expects its Rwandan unit to break even in
three years after investing $12 million setting up operations in
the country, Managing Director James Mwangi said. “Equity Bank Rwanda will be financially supported by Equity
Bank Kenya’s balance sheet in the next two years to facilitate
their operations before it starts making profits,” Mwangi told
reporters today Kigali, the capital. The lender expects to be
among Rwanda’s three biggest banks within five years, he said. Rwanda’s economy, still recovering from the 1994 genocide
that left at least 800,000 people dead, is forecast by the
central bank to grow 7.6 percent in 2011. Foreign direct
investment in the country grew 57 percent last year to $626
million, according to the Rwanda Development Board. Equity began operations in Rwanda in October with three
branches. The bank has more than 5.2 billion Rwandan francs
($8.58 million) in deposits, 1 billion francs of loans and
30,000 customers, Mwangi said. The lender plans to open another
three outlets before the end of this year, according to an e-
mailed statement from the bank. Rwanda’s biggest bank by market share, Bank of Kigali Ltd. ,
has 100,000 customers, according to a statement issued by the
bank on Feb. 14. The bank also plans to introduce agency banking services in
Rwanda, with an initial target of 200 agents, Mwangi said. Under
the system, agents at locations including supermarkets and gas
stations are enabled to dispense cash and take deposits. To contact the reporter on this story:
Saul Butera in Kigali via Nairobi at
pmrichardson@bloomberg.net . To contact the editor responsible for this story:
Paul Richardson at
pmrichardson@bloomberg.net . | 2012 | equity-bank-expects-to-break-even-in-rwanda-within-three-years |
Clinton Leads New Effort Against Climate-Heating Gases | By Kim Chipman | 2012-02-17T16:32:25Z | http://www.bloomberg.com/news/2012-02-17/clinton-leads-new-effort-against-climate-heating-gases.html | 2 | 17 | 0c264e551aec8cc16917acd9d067eaebd4de8e4e | Public interest in climate change policy has dropped off since its 2009 peak, when nations failed to reach a comprehensive, binding legal agreement during negotiations in Copenhagen. The climate itself never got the memo. That's why Secretary of State Hillary Clinton yesterday unveiled a new international coalition of countries that aims to curb “short-lived” climate pollutants such as black carbon, refrigerants and methane. These chemicals stay in the atmosphere for much less time than carbon dioxide, the main driver of climate change, which can hang in the air for decades or centuries. Curbing short-lived climate pollutants may reduce global warming expected by 2050 by as much as 0.5 degrees Celsius, according to the United Nations Environment Program. The world has warmed about 0.7 degrees Celsius (1.3 degrees Fahrenheit) since 1900, and temperatures are predicted to rise about 0.2 degrees Celsius a decade. The new climate group includes the U.S., Canada , Ghana, Mexico , Bangladesh and Sweden and is overseen by the UN Environment Program. The partners have committed $15 million to start, with $12 million committed by the U.S. and $3 million from Canada over 2 years. The announcement of the coalition wasn't accompanied by any specific goals of how much each gas should be reduced, how much the countries currently emit, or by what methods the reductions would be reached. The announcement is not a sure-win for environmentalists, who are skeptical of efforts that are too narrow in scope and less than global in scale. ``Big emitters like the U.S. and Canada that are advancing this initiative have done very little to reduce CO2 emissions, the primary cause of global warming,'' Keya Chatterjee, director of international climate policy at World Wildlife Fund, said in a statement. The international climate group will hold its first meeting in Stockholm in April. More than 190 nations agreed on Dec. 11 to seek global deal by 2015 to reduce carbon emissions that are driving climate change, with participation for first time by the U.S., China and India , the world's three biggest greenhouse gas emitters. | 2012 | clinton-leads-new-effort-against-climate-heating-gases |
U.S. Companies Reporting Earnings on Feb. 17 | By Wendy Soong | 2012-02-17T21:26:43Z | http://www.bloomberg.com/news/2012-02-17/u-s-companies-reporting-earnings-on-feb-17.html | 2 | 17 | 797ce8be71f815e3e53e7aef5ef1f136d92e4518 | The following table lists the 16 U.S. companies
that reported quarterly earnings today (end date of the quarter is noted in
the last column). Companies are sorted alphabetically by ticker symbol. Earnings estimates provided by Bloomberg.
To contact the reporter on this story:
Wendy Soong in New York at at csoong@Bloomberg.net . To contact the editor responsible for this story:
Alex Tanzi at at
atanzi@Bloomberg.net | 2012 | u-s-companies-reporting-earnings-on-feb-17 |
Corporate Bond Offerings in U.S. Fall to Slowest Pace This Year | By Tim Catts | 2012-02-17T14:20:45Z | http://www.bloomberg.com/news/2012-02-17/company-bond-sales-in-u-s-fall-to-slowest-pace-this-year-as-rally-stalls.html | 2 | 17 | f5dc78259da04ea385b7dc569facbe14 | Corporate bond sales in the U.S.
fell to $15.4 billion this week, the lowest level of 2012, as
evidence mounted that a credit market rally was losing momentum. Total SA (FP) , Europe’s third-largest oil producer, issued $2
billion of debt in its biggest offering since June 2010,
according to data compiled by Bloomberg. Torrance, California-
based Toyota Motor Credit Corp. (5672A) got its lowest-ever bond coupon
as it sold $1.25 billion of three-year notes, the data show. Issuance fell 61 percent from last week’s $39.8 billion and
the commercial paper market declined for the first time since
the period ended Jan. 4 as European leaders wrangled over
further assistance to Greece . Returns on company debt have
fallen to 0.02 percent in February, after a gain of 4.42 percent
in the preceding two months, according to the Bank of America
Merrill Lynch U.S. Corporate & High Yield Master Index. “We’ve definitely seen a slowdown,” Rob Crimmins, a New
York-based money manager at RS Investments, which oversees $30
billion, said in a telephone interview. “Corporations have
fortified their balance sheets so they don’t need to issue and
with all the global economic uncertainty, they’re not sure if
they should invest.” Investment-grade corporate bond yields climbed this week to
3.55 percent, since reaching a record low of 3.45 percent on
Aug. 4, Bank of America Merrill Lynch index data show. Yields on
high-yield, high-risk bonds, rated below Baa3 by Moody’s
Investors Service and less than BBB- by Standard & Poor’s ,
declined to 7.75 percent from 8.54 percent at the end of 2011,
the index data show. Sales this week compare with a 2012 average of $33.8
billion, Bloomberg data show. Total Offering Total, based in Paris, issued $1 billion of five-year, 1.5
percent bonds and the same amount of 10-year, 2.875 percent debt
on Feb. 14, Bloomberg data show. The offering was its largest
since it tapped the market for $2.5 billion on June 17, 2010. BP
Plc and Royal Dutch Shell Plc are Europe’s two biggest oil
producers. Toyota Motor Credit issued 1 percent notes due February
2015 in its second U.S. offering of fixed-rate bonds this year
on Feb. 14, Bloomberg data show. It issued $2 billion split
between five-year, 2.05 percent debt and 10-year, 3.3 percent
bonds on Jan. 9. Investment-grade borrowers issued a total of
$12.2 billion of bonds, down 64 percent from the seven days
through Feb. 10. Chesapeake Energy Corp., the second-largest U.S. natural-
gas producer after Exxon Mobil Corp., and Rite Aid Corp. were
among junk-rated companies selling $3.1 billion of debt this
week, a 49 percent decline from the previous period, Bloomberg
data show. Commercial Paper Falls The seasonally adjusted amount of U.S. commercial paper
outstanding fell by $10.8 billion to $962.1 billion in the week
ended Feb. 15, the Federal Reserve said yesterday on its
website. That was the first time the market has contracted since
dropping $30.1 billion for the period ended Jan. 4, according to
Fed data compiled by Bloomberg. The pace of issuance slowed as European creditor countries
tussled over how future aid is spent on Greece and the region’s
finance ministers put off a decision on 130 billion euros ($171
billion) of assistance until at least Feb. 20. Concerns that an
agreement might be delayed outweighed a Labor Department report
that Americans filed 348,000 claims for jobless benefits last
week, the fewest since 2008. “The economic data here in the U.S. is still looking
pretty positive,” Crimmins said. “We expect the U.S. to
continue to grow, but the concern is with what’s going on in
Europe .” To contact the reporter on this story:
Tim Catts in New York at
tcatts1@bloomberg.net . To contact the editor responsible for this story:
Alan Goldstein at
agoldstein5@bloomberg.net . | 2012 | company-bond-sales-in-u-s-fall-to-slowest-pace-this-year-as-rally-stalls |
Citigroup to Let Managers Take Stakes in Its Hedge Funds as Volcker Looms | By Donal Griffin, Katherine Burton and Anthony Effinger | 2012-02-17T17:36:11Z | http://www.bloomberg.com/news/2012-02-17/citigroup-s-havens-says-managers-to-own-part-of-hedge-fund-unit.html | 2 | 17 | ef7ab40d19e14a079098eff09270861b | Citigroup Inc. (C) , the third-biggest
U.S. bank by assets, will let managers of its hedge funds own
part of the business ahead of rules that limit shareholders’
cash in the unit, Chief Operating Officer John Havens said. Employees in the Citi Capital Advisors division, or CCA,
will get a “significant” stake in managing the funds, Havens
said in an interview. This will increase, he said, as New York-
based Citigroup withdraws its own money and attracts outside
investors to comply with the Volcker rule, which restricts
deposit-taking banks from making bets with their own capital. “Our competitors are an owner-operated model,” Havens
said during an interview in his 39th-floor corner office at
Citigroup’s Greenwich Street building in Manhattan . “It was
always in the plans but you have to actually have a business
that you’re comfortable with to go do it.” Havens and Chief Executive Officer Vikram Pandit , 55, are
seeking to replace the company’s cash in CCA with funds from
outsiders as regulators draft the Volcker rule’s final language.
The proposed rule would prohibit banks from owning more than 3
percent of hedge funds and private-equity funds and from
investing more than 3 percent of Tier 1 capital in the funds. “We’re trying to create a client-centric, alternative
asset-management business, and this is the final stage of
putting that in place,” Havens said. “Clients like independent
asset managers.” Citigroup advanced 19 cents, or 0.6 percent, to $32.90 at
12:20 p.m. in New York. The stock has gained 24 percent this
year through yesterday after tumbling 44 percent in 2011 . Dorfman, O’Brien Former Morgan Stanley executives Jonathan Dorfman and James O’Brien run CCA, which managed $18.2 billion in private-equity,
venture-capital and hedge funds , Citigroup said in August. Citigroup had at least $5 billion in the funds, a person
familiar with the matter said in May. The company also invested
about $800 million of its money in internal private-equity and
hedge funds in the third quarter, according to a November
regulatory filing. Attracting external capital would help Citigroup withdraw
its money without forcing the closure of funds that hold mostly
company cash. If the firm wanted to keep $5 billion with CCA and
comply with the Volcker rule’s 3 percent cap, the funds would
have to contain $161.7 billion from outside investors, or 69
percent more than the bank’s current market value. Citigroup didn’t provide details about how it would divest
its ownership of the hedge-fund unit. Top Managers “The actual drafting of the terms are under way,”
Danielle Romero-Apsilos, a Citigroup spokeswoman, said in an e-
mailed statement. “Formulas are currently being negotiated that
would allow CCA’s management to acquire a portion of Citi’s
interest in CCA, including their ability to replace a portion of
Citi’s existing capital with third-party capital.” Offering a stake in CCA will help Citigroup attract top
managers, Havens said. Hedge-fund managers typically earn 2
percent of the assets they oversee and 20 percent of the profit.
The change follows a year in which some of the bank’s hedge
funds posted losses, people with direct knowledge of the matter
said. The Bloomberg aggregate hedge-fund index fell 5.2 percent
in 2011. The Strategic Credit Fund , which invests in riskier debt,
fell about 13 percent, said one of the people, who spoke on
condition of anonymity because the figures aren’t public. The
fund, managed by Fred Hoffman, has about $200 million under
management, almost all of which belongs to shareholders, the
person said. Rajesh Kumar’s Mortgage/Credit Opportunity Fund declined
about 4.2 percent, two people said. The fund contains about $400
million, most of it Citigroup’s own cash, one person said. Event Driven Fund Mukesh Patel’s Event Driven Fund , which manages about $500
million, dropped 1.8 percent, one of the people said. Kevin Bespolka’s $250 million Global Macro Fund lost about 11 percent
and the $150 million European Credit Opportunities Fund slid 2.8
percent. Other funds gained. A $370 million municipal-bond fund
managed by Craig Henick and Edward Sun climbed about 6 percent
and Mark Franklin’s Emerging Markets Special Opportunities Fund ,
with $900 million under management, advanced 0.4 percent,
according to the people. Some of the managers used to work for Pandit and Havens at
Old Lane Partners LP, the hedge fund the pair founded after they
left Morgan Stanley (MS) in 2005. Citigroup bought Old Lane for $800
million in 2007 in a deal that ultimately led to Pandit becoming
CEO later that year. The bank shut that fund in 2008, purchasing
its assets and allowing investors to take their money out. ‘We Are Pleased’ Havens declined to give CCA’s performance for 2011.
Citigroup doesn’t disclose the unit’s revenue or performance.
Net income at the securities-and-banking division, which holds
the company’s trading and investment-banking divisions, tumbled
24 percent to $4.86 billion in 2011. “It can always be better,” Havens said. “But we are
pleased with the performance in that, on an asset-weighted
basis, we’re top quartile in our hedge-fund strategies.” Pandit and Havens are among Wall Street bosses grappling
with the implications of the Volcker rule, which also seeks to
restrict so-called proprietary trading, in which banks’ trading
desks make bets with shareholders’ funds. Citigroup shut a
London-based proprietary trading unit earlier this year with
most of its staff leaving the bank, according to an internal
memo obtained by Bloomberg News at the time. Morgan Stanley and
Goldman Sachs Group Inc. (GS) have already exited similar businesses. ‘Important Clients’ Havens planned in 2010 to raise $3 billion over three years
for CCA and outside investors already have put in $2.6 billion,
he said. Most of the external capital that CCA manages belongs to
so-called ultra high-net-worth individuals, sovereign-wealth
funds and pension and endowment funds, according to a Dec. 31,
2010, internal document obtained by Bloomberg News. “They’re critically important clients for this company,”
Havens said. “They’re the largest, most sophisticated pools of
assets in the world.” Havens declined to say whether Citigroup would keep any
shareholder cash in the funds once the proposed rule, named for
former Federal Reserve Chairman Paul Volcker , takes effect. “We are a big believer in alternative asset management and
we have huge faith in the management team at CCA,” Havens said.
“I don’t put money in businesses I don’t like.” To contact the reporters on this story:
Donal Griffin in New York at
dgriffin10@bloomberg.net ;
Katherine Burton in New York at
kburton@bloomberg.net ;
Anthony Effinger in Portland at
aeffinger@bloomberg.net To contact the editors responsible for this story:
David Scheer at
dscheer@bloomberg.net ;
Christian Baumgaertel at
cbaumgaertel@bloomberg.net ;
Michael Serrill at +1-212-617-6767 or
mserrill@bloomberg.net | 2012 | citigroup-s-havens-says-managers-to-own-part-of-hedge-fund-uni |
Gold Fields Profit Jumps 26% on Metal Prices, Beating Analysts’ Estimates | By Jana Marais | 2012-02-17T15:49:03Z | http://www.bloomberg.com/news/2012-02-17/gold-fields-posts-higher-fourth-quarter-eps-beating-analysts-estimates.html | 2 | 17 | 7a467d5d77223d16c1b5a620941e4e572e5dd20c | Gold Fields Ltd. (GFI) , the fourth-largest
producer of the metal, more than doubled its dividend for last
year after benefiting from higher sale prices in rand. The 3.30 rand (43 U.S. cents) a share payout is “the
highest dividend yield in the gold industry globally,” Chief
Executive Officer Nick Holland told Bloomberg Television today.
Gold Fields will keep its policy of paying out half of earnings
after growth capital is deducted, Chief Financial Officer Paul Schmidt said in a separate Johannesburg presentation. The shares closed little changed at 125.98 rand in
Johannesburg, valuing it at 91.3 billion rand. “Dividend policy has been well-accepted by the market,”
said David Davis, an SBG Securities analyst. “I’ll be paying
attention to their growth pipeline and how it’s funded.” Gold Fields, which mined about half its 3.49 million ounces
of 2011 output in South Africa , targets 5 million ounces a year
in production or development by 2015. It’s growing in Peru and
Australia and plans mines in Mali , Finland and the Philippines. The company reported fourth-quarter earnings excluding one-
time items rose to 2.65 billion rand, or 3.68 rand a share, from
2.11 billion rand, or 2.91 rand, in the previous three months,
according to a statement today. The median of five analyst
estimates compiled by Bloomberg was 3.62 rand a share. Damang Project Gold Fields expects to complete a pre-feasibility study for
Ghana ’s Damang Super-pit project, due to add as much as 500,000
ounces a year, in the second half of 2012, Holland said. It’s
“cautiously optimistic” the government and miners will reach a
“win-win situation” on taxes to sustain the industry, he said. The company will exercise an option this year to buy 60
percent of the Far Southeast project, an undeveloped gold and
copper deposit in the Philippines , for $220 million, it said. South African gold producers benefited from a 12 percent
jump in the average local price of the metal in the fourth
quarter from the previous three months as the rand fell against
the dollar. Producers gain from a weaker rand because they sell
much of their output in dollars and pay most costs in rand. Analysts who track South African gold producers measure
quarter-on-quarter earnings excluding one-time items. To contact the reporter on this story:
Jana Marais in Johannesburg at
jmarais@bloomberg.net To contact the editor responsible for this story:
John Viljoen at
jviljoen@bloomberg.net | 2012 | gold-fields-posts-higher-fourth-quarter-eps-beating-analysts-estimates |
Paulson’s Math Seen Failing as Hartford Mulls Breakup: Real M&A | By Charles Mead and Andrew Frye | 2012-02-17T18:05:00Z | http://www.bloomberg.com/news/2012-02-17/billionaire-paulson-s-math-seen-failing-as-hartford-mulls-split-real-m-a.html
Even if John Paulson persuades
Hartford Financial Services Group Inc. (HIG) to break itself up, the
hedge fund manager could still come up short in his billion-
dollar bet on the 201-year-old insurer. Hartford’s biggest shareholder said this week he may seek
support from investors for a plan to split the property-casualty
and life-insurance businesses, pushing the stock to a six-month
high yesterday. Hartford, which sells for less relative to net
assets than comparable U.S. insurers, according to data compiled
by Bloomberg, could be worth $32 a share by separating the
units, he said. That’s 50 percent more than its current price. Paulson, who had his worst year on record in 2011 after
making billions of dollars from anticipating the collapse of the
U.S. subprime market, needs Hartford to reach about $24.71 a
share to recoup his investment, filings to the U.S. Securities
and Exchange Commission and data compiled by Bloomberg show.
While Dowling & Partners said regulatory hurdles and Hartford’s
debt will ultimately prevent a split, even a successful breakup
may only boost the insurer’s price to $25 a share, according to
FBR & Co. and Stifel Nicolaus & Co. “I just don’t see how that happens,” Dan Theriault, a New
York-based analyst at Portales Partners LLC, said in a telephone
interview, referring to Paulson’s estimate for Hartford’s
breakup value. “These things, while they look good on paper,
really from a reality standpoint don’t create the value that
you’d think,” he said. Shareholder Returns Armel Leslie , a spokesman for Paulson, who runs the $23
billion hedge fund Paulson & Co. in New York, declined to
comment on whether the Hartford investment would be profitable. Shannon Lapierre, a spokeswoman for Hartford, based in the
Connecticut city of the same name, declined to comment on
whether breaking up the insurer would boost returns for
shareholders and referred to its Feb. 14 statement. In it, Hartford said “there are potential benefits to a
separation,” while it also recognized there are “challenges to
successfully executing a separation.” Founded in 1810, Hartford sells savings products and life
insurance policies that compete with those from firms such as
MetLife Inc. (MET) and Prudential Financial Inc. (PRU) Hartford’s rivals in
the property-casualty market include Travelers Cos. (TRV) and
Berkshire Hathaway Inc. (BRK/A) ’s car-insurance unit Geico Corp. Once worth more than $33 billion in 2007, Hartford plunged
96 percent to its low in March 2009 as the worst financial
crisis since the Great Depression produced losses on equity-
linked variable annuities the insurer sold in the U.S. and
Japan , often with guaranteed minimum returns for customers. ‘Force Their Hand’ After Hartford drew down its capital to cover the
investment losses, it was forced to take a $3.4 billion bailout
from the U.S. government at the end of June 2009. Paulson started buying shares of Hartford the next quarter,
a filing with the SEC showed. His stake in Hartford’s common
equity increased to a high of 44 million shares in the second
quarter of 2010 and currently stands at about 37.5 million
shares, which includes warrants that give Paulson the option to
purchase 70,000 shares at a predetermined price, its filing on
Feb. 14 with the SEC showed. Paulson’s firm spent about $927.8 million for its 8.4
percent stake in Hartford, its SEC filing showed, meaning each
share cost about $24.71, data compiled by Bloomberg show. That’s
17 percent higher than Hartford’s price of $21.19 yesterday. Paulson’s campaign is “going to force their hand,” Alan Devlin, a London-based analyst at Atlantic Equities LLP, said in
a telephone interview. Assets sales and a breakup are “the best
game plan because it gets you to where you want to be in the
quickest way,” he said. Breakup Value Devlin estimates that Hartford could be worth more than $33
a share in a breakup. Paulson’s Advantage Plus Fund, which seeks to profit from
corporate events such as takeovers and bankruptcies and borrows
money to amplify returns, lost 51 percent in 2011. Shares of
financial companies were the “primary drag” on the fund’s
performance, Paulson said in a third-quarter letter to investors
in October, a copy of which was obtained by Bloomberg News. The firm notified regulators Feb. 14 that it may talk with
shareholders to bolster its push to break up Hartford. Paulson, 56, and Hartford’s Chief Executive Officer Liam McGee had clashed on a Feb. 8 conference call when McGee
resisted Paulson’s assertion that Hartford would be worth more
to shareholders if it were split into separate businesses. Hartford trades at 0.42 times its assets minus liabilities,
less than any other U.S. insurance company with more than $5
billion in market value, data compiled by Bloomberg show. ‘Exhaustive Research’ MetLife, the biggest U.S. life insurer, trades at about 0.7
times its book value. New York-based Travelers trades at about
the value of its net assets. “We have done exhaustive research on the challenges and
opportunities of the Hartford and believe that a spinoff would
produce an increase in value for Hartford shareholders,”
Paulson said in a letter to McGee published in a statement Feb.
14. “Hartford trades at lower valuation multiples than any of
its U.S. insurance peers. Addressing these issues should be
Hartford’s highest priority.” Paulson’s estimate of $32 a share assumes that the
property-casualty business can command a valuation of about 1.1
times its shareholder equity and that the life unit would trade
at 0.6 times its book value after a breakup, the filing showed. Hartford said it has $6.8 billion of debt at the holding
company that, in the event of a split, would have to be passed
to the operating units. The life insurance subsidiaries have
“limited capacity to generate statutory earnings” and can
assume no more than a third of that debt, it said. $2 Billion Bet Paulson, who spent $2 billion buying credit-default swaps
on subprime mortgages in 2007 before the housing market
collapsed in a trade that helped him become a billionaire,
recommended 11 steps to help Hartford pay its debt. He said Hartford could suspend share buybacks and that
profit in coming quarters would ease the burden. The company
could also stop selling new products at the U.S. variable
annuities division to conserve capital and find buyers for its
mutual-fund and group-benefits businesses, Paulson said. “These assets are likely to fetch more value in an
appropriate trade sale than is implied” by the stock price,
Mark Finkelstein, an analyst at Evercore Partners Inc., said in
a report dated Feb. 15. Divesting and shutting down the life
businesses could increase the company’s value to $26 a share to
$30 a share, he said. The company is worth about $21.26 a share
if it continues with both of the main operations, he said. Debt Payments McGee told Paulson on Feb. 8 that a separation probably
wouldn’t “create shareholder value ,” and the company cited
credit ratings and the need for regulatory approvals among the
challenges in a slide presentation the same day. “Management didn’t just brush this off, and they’re not
opposed to it | 2 | 17 | 3009e126eb59465aa35d18b43d670bdc | Janney Capital Markets in Hartford, said in a telephone
interview. “I understand the logic. But I just don’t see how
you could execute it. It’s not feasible.” Gary Ransom, an analyst at Dowling & Partners in
Farmington, Connecticut , said in a report to clients that
Hartford’s life business isn’t profitable enough to service more
than a third of the company’s debt, which has increased almost
50 percent since 2007. That means its property-casualty unit, if it was spun off,
wouldn’t be able to shoulder the remaining liabilities and
maintain its credit rating without raising more money, he said. ‘No Silver Bullet’ “There is no silver bullet,” Ransom wrote in a report
dated Feb. 9, a day after Paulson said on Hartford’s earnings
call it needed “to do something drastic” to boost returns. “A
spin-off is essentially impossible without a dilutive equity
capital raise,” he said. Brian Schneider, a Chicago-based insurance analyst at Fitch
Ratings , said yesterday a potential split “raised questions”
about how Hartford’s life business would pay its debt as it has
struggled with lower margins and increased costs. Regulators could also block a breakup to protect customers
from the risk that the life unit wouldn’t be able to repay its
obligations, according to Stifel Nicolaus’ Meyer Shields . Third-quarter net income at the division fell 84 percent to
$63 million from a year earlier, according to data compiled by
Bloomberg. That’s less than any quarter since it lost money in
the same three-month period in 2009. “If you’ve got a unit whose earnings are weak, and you’ve
got significant policyholder liabilities that will emerge over
time, I think regulators would hinder that sort of breakup,”
Shields said in a telephone interview from Baltimore. “The
value of the standalone life company is lower than the more
optimistic assumptions that John Paulson described.” Sum of Parts Shields said a “very rough” estimate of $25 a share would
be a better gauge of Hartford’s value in a breakup. He based the
projection on each unit’s earnings. Randy Binner , an analyst at FBR in Arlington, Virginia ,
also said $25 a share would be a more realistic projection. That
would imply a return of just 1 percent for Paulson, based on the
firm’s per-share cost. Binner’s sum-of-the-parts analysis used 9 times estimated
2012 earnings for the property-casualty business and 7.3 times
projected profit for the life unit. While a split or a spin-off is ultimately unlikely, Dowling
& Partners’ Ransom said a more feasible option would be selling
the property-casualty business. At a sale price of 1.25 times
book value for the property-casualty business, the proceeds
would still only give Hartford a value of $21 a share. Long-Term Interest The sale wouldn’t significantly boost returns for
shareholders because more than half the proceeds would be used
to pay down debt and taxes, while ratings companies would
require the remaining company to bolster its capital , he said. Paulson’s interest in Hartford “doesn’t really change
anything,” Joshua Schachter, who helps manage about $3 billion
at Snow Capital Management LP in Sewickley, Pennsylvania , and
owns Hartford shares, said in a telephone interview. “At this
point in Hartford’s position, I don’t think splitting the
company up is the best thing long term for the shareholders.” To contact the reporters on this story:
Charles Mead in New York at
cmead11@bloomberg.net ;
Andrew Frye in New York at
afrye@bloomberg.net . To contact the editors responsible for this story:
Daniel Hauck at dhauck1@bloomberg.net ;
Dan Kraut at dkraut2@bloomberg.net . | 2012 | billionaire-paulson-s-math-seen-failing-as-hartford-mulls-split-real-m-a |
Monti Bonds Gain as Merkel, Sarkozy Busy | By Jeffrey Donovan | 2012-02-17T12:04:40Z | http://www.bloomberg.com/news/2012-02-17/monti-bonds-gain-as-merkel-sarkozy-busy-at-home-euro-credit.html | 2 | 17 | ef6eb8856c054b8f99dfafb7f10553ac | Italian Prime Minister Mario Monti
is emerging as a game-changer in Europe’s debt crisis as German
Chancellor Angela Merkel tackles a domestic political crisis and
French President Nicolas Sarkozy focuses on his re-election bid. Monti, who has repeatedly criticized Germany and France for
first violating European fiscal rules, was scheduled to meet
alone in Rome today with Merkel, chief powerbroker in the debt
crisis and head of Europe’s largest economy. The meeting, first
set for Jan. 20 with Sarkozy, was rescheduled without him and
then canceled today as German President Christian Wulff resigned
amid the threat of a legal probe into corruption allegations. “Monti is extremely important because Italy is really the
make-or-break country in the euro crisis,” Christian Schulz , an
economist at Berenberg Bank in London , said in a telephone
interview. Monti has “re-established Italy as an important
force in European politics.” Monti will hold a three-way telephone conversation today
with Merkel and Greek Prime Minister Lucas Papademos , his office
said in an e-mailed statement. Monti and Merkel will also stay
“in close touch” before euro-area finance ministers meet in
Brussels on Feb. 20, his office said. The ministers may approve
a new rescue package to help Greece avert the euro area’s first
sovereign default. A former EU competition commissioner who leveled a record
fine against Microsoft Corp., Monti took over as premier from
Silvio Berlusconi on Nov. 16 after investors lost confidence in
Italy ’s ability to cut the world’s fourth-biggest debt. Monti
embarked on an overhaul of the Italian economy that, along with
the European Central Bank ’s unlimited three-year loans to banks,
has helped send Italian yields plunging from euro-era records. Falling Yields Since Monti’s arrival, Italian 10-year yields have declined
about 1.4 percentage points to 5.62 percent after hovering for
about two months at the 7 percent level that led Greece, Ireland
and Portugal to seek rescues. One gauge of the “Monti effect”
is the narrowing of the yield difference between Italian and
Spanish 10-year bonds, which also benefited from ECB lending.
The gap shrank to 35 basis points from 202 at the start of 2012. Italy would have had to pay an extra 8.1 billion euros in
financing costs over the past seven months if its bond yields
had remained near the levels of Nov. 30, when the 10-year yield
was at 7.02 percent, Riccardo Barbieri , an economist at Mizuho
International Plc in London, said in an e-mail. The 10-year now
yields 372 basis points more than comparable German bunds, down
from 518 on Nov. 16. White House Monti’s unelected government of non-politicians has kept a
pledge by Berlusconi to erase the budget gap in 2013, pushing
through 20 billion euros ($26 billion) in tax increases and
spending cuts as well as measures aimed at spurring anemic
Italian growth through deregulation and reducing red tape. His
efforts won him an invitation to the White House for talks with
President Barack Obama last week and a Time magazine cover story
headlined, “Can This Man Save Europe ?” “Monti is clearly keen to reassert a degree of authority
for Italy within the euro zone, which his disastrous predecessor
had tossed away,” Marc Ostwald , a strategist at Monument
Securities Ltd. in London, said in an e-mail. Sarkozy is “in no
position to do anything other than fight the election, leaving
euro-zone governance issues to be dealt with once the election
is over, a situation neither Germany nor Italy” can allow. Today’s Talks Monti, who is also finance minister, will host talks today
in Rome with Canadian Finance Minister James Flaherty. Canada
and the U.S. have so far opposed giving the International
Monetary Fund more resources to devote to Europe’s debt crisis,
an idea supported by European leaders. A week after taking office, Monti met with Merkel and
Sarkozy in Strasbourg, France , where he publicly criticized
Germany and France for violating EU budget rules in 2003. He has
since pushed Merkel to help nations like Italy and Greece offset
the impact of austerity measures and asked the EU to make
economic growth a formal priority alongside fiscal virtue. Monti “has been a game-changer,” restoring “credibility
to Italy’s government” at a critical time for Europe, said
Nicholas Spiro, managing director of Spiro Sovereign Strategy in
London. He’s pushing for a “quid pro quo from Germany: more
confidence-building measures to shore up the euro in exchange
for ambitious reforms at home.” With Greece veering toward default amid disagreement among
creditors over a rescue package, Monti escalated his criticism
in remarks to the European Parliament on Feb. 16, saying Athens
was being put under unbearable strains. He again pointed to
previous German and French violations of EU deficit rules in
pushing for more comprehension for Greece . ‘Resentments’ “The very tough approach being taken toward Greece today
may lead us to regard this as being excessive, and it probably
is,” Monti said, warning “resentments” fueled by the crisis
risked breaking apart the 27-nation EU. “There are no good guys
and bad guys. We all need to feel jointly responsible.” While Merkel has praised Monti for his “remarkable
measures,” she was less charitable when asked about enjoining
growth and fiscal discipline as a cornerstone of EU policy. “I’m still looking for what more we should do,” she told
reporters in Berlin on Jan. 18. “When I have figured that out,
I will tell you what it is.” Still, Monti’s role in Europe’s crisis debate is growing as
Sarkozy digs into his re-election battle while trailing in the
polls and Merkel risks being distracted from the crisis by the
resignation of Wulff. She will now have to find a fresh
candidate from among her allies for the largely ceremonial post. Monti’s next challenge is to make good on a pledge to
overhaul Italy’s rigid labor market by the end of March. His
ability to see that through, while ensuing lawmakers don’t
dilute his earlier measures on deregulation and red tape, may
decide whether his government lasts to the end of the current
legislature in spring 2013. That effort will also help determine whether Italian bond
“yields can revert on a permanent basis to lower levels, which
will in turn help to achieve the budget surplus that is needed
to start bringing down Italian government debt to a sustainable
level,” Ostwald said. To contact the reporter responsible for this story:
Jeffrey Donovan at
jdonovan26@bloomberg.net To contact the editor responsible for this story:
Craig Stirling at cstirling1@bloomberg.net | 2012 | onti-bonds-gain-as-merkel-sarkozy-busy-at-home-euro-credi |
Santos Says Shale Gas Potential in Australia Is ‘Very Large’ | By James Paton | 2012-02-17T05:35:17Z | http://www.bloomberg.com/news/2012-02-17/santos-says-central-australian-shale-gas-potential-very-large-.html
Santos Ltd. (STO) , Australia ’s third-
largest oil producer, said the shale gas potential in the Cooper
Basin in the center of the nation is “very large.” “We’re all conscious of what happened in North America,
where the play opened up quite quickly,” David Knox, chief
executive officer of the Adelaide-based energy company, said
today on a conference call with reporters. “The potential is
very large, but it is absolutely still a potential. We need to
demonstrate that through drilling and scientific work.” Santos drilled a vertical shale gas well in the Cooper
Basin in December and plans to drill a horizontal well in the
fourth quarter, the company said today in a presentation . The
company plans to drill four “unconventional” wells in the area
in the second half of this year, according to the document. “It’s about using technology | 2 | 17 | a8d093fb506692c9fa9893888b5cadbbca2ef2e8 | and drive down costs,” Knox told analysts earlier today after
the company reported a 51 percent gain in full-year profit. Santos rose 0.1 percent to A$13.56 at the close of trade in
Sydney. The benchmark index rose 0.3 percent. To contact the reporter on this story:
James Paton in Sydney at
jpaton4@bloomberg.net To contact the editor responsible for this story:
Amit Prakash at
aprakash1@bloomberg.net | 2012 | santos-says-central-australian-shale-gas-potential-very-large- |
Harris to Offer Android-Based Computer Tablet for Military | By Brendan McGarry | 2012-02-17T21:53:18Z | http://www.bloomberg.com/news/2012-02-17/harris-to-offer-android-based-computer-tablet-for-military.html | 2 | 17 | 2eca77f3659842a595dadf28d804aa55 | Harris Corp. (HRS) , a maker of radios and
communications equipment, plans to offer its first computer
tablet to the U.S. military and other customers. The Melbourne , Florida-based company, which had $5.92
billion in revenue last fiscal year, said it will introduce next
week a rugged, 2-pound tablet that uses Google Inc. (GOOG) ’s Android
operating system. The device is designed to connect to military
radios to provide troops with voice, video and data
communications. “We thought there was some space in the market for an
Android-based tablet with some unique military features,”
Dennis Moran, the company’s vice president of government
business development, said in an interview. Harris will show the
product at an Army conference beginning Feb. 22 in Fort
Lauderdale , Florida . The U.S. military increasingly has turned to smart phones
and tablets as broadband communications on the battlefield have
become more critical, notably during the wars in Afghanistan and
Iraq . The Air Force’s Air Mobility Command earlier this month
said it may buy as many as 18,000 Apple Inc. (AAPL) iPad 2s to lighten
the load of flight crews, in what would be one of the military’s
largest orders of computer tablets. “The iPad is a great device, but I have to assume that the
Army would want a product that would be of a ruggedized nature
and could have the capability to not only operate on
conventional cellular networks, but also operate on the Army’s
private networks,” Lawrence Harris , an analyst in New York with
CL King & Associates Inc., said in a telephone interview. Portable Radios Harris, who has no relationship to the company, has a
“strong buy” rating on the company. Harris shares fell 6
cents, or 0.14 percent, to $42.66 in New York trading. They have
risen 18 percent this year. The company expects “large” orders for the product “in
the very near term,” Moran said. Jim Burke, a spokesman for
Harris, later said Moran was referring to initial customer
interest, not any pending order. Potential customers include the Army, Marine Corps, special
forces, allied militaries, and law enforcement and public safety
organizations, Moran said. A tablet shown to Bloomberg News included software
applications developed by Harris for chat and mapping, so troops
or units are able to communicate and see where they are in
relation to one another. It also included the popular game
“Angry Birds,” made by Rovio Entertainment Oy. Night-Vision Goggles The company has sold more than 160,000 handheld and about
20,000 portable radios for military use. U.S. soldiers, Marines
and allied forces are using about 5,000 of the latter in
Afghanistan and elsewhere. Sales of those products have boosted the company’s RF
Communications segment, whose revenue rose to $2.29 billion in
fiscal 2011 from $2.07 billion in fiscal 2010. Harris competes against companies such as Thales SA (HO) of
France and General Dynamics Corp. (GD) of Falls Church , Virginia. The touch-screen device is designed to be used with gloves
or with a stylus, and in the sun or with night-vision goggles. It doesn’t include a chip to encrypt information and
instead relies on software algorithms for security, Moran said.
The radio to which it tethers does include hardware encryption,
he said. “We are looking for guidance from NSA,” or the National
Security Agency, which develops software security standards for
products used by the Defense (USBODEFN) Department, Moran said. Still,
“security is not going to be a cost-driver in these kinds of
products,” he said. Defense Budget Mark Jordan, a senior research analyst in St. Louis for
Noble Financial Group Inc., said Harris is “leading the
industry” in bringing broadband communications to tactical
radios. He has a “buy” rating on the company. “Some form of tablet or PC would be very useful in
displaying the data that would typically be carried over that
broadband stream,” he said in a telephone interview. “You need
more of a display. Communication is coming in files and
streaming video. You need something to plug into the radio to be
able to capture it, retain it and play it back.” While the Defense Department plans to cut at least $490
billion, or about 8 percent, from its 10-year budget, investment
in networking and communications products may grow. The U.S. Army’s fiscal 2013 budget proposal released this
week includes $556 million for procurement of the Joint Tactical
Radio System, a family of digital radios, up from $427 million
in fiscal 2012 and from $88.6 million in fiscal 2011, according
to budget documents. Harris said the tablet was in development for more than a
year. Officials wouldn’t say whether they manufactured the
technology themselves or gave the work to a notebook or computer
maker. To contact the reporter on this story:
Brendan McGarry in Washington at
bmcgarry2@bloomberg.net To contact the editor responsible for this story:
Stephanie Stoughton at
sstoughton@bloomberg.net | 2012 | arris-to-offer-android-based-computer-tablet-for-military |
Czech Stocks: CEZ, Telefonica Czech, New World Resources Move | By Krystof Chamonikolas | 2012-02-17T16:31:11Z | http://www.bloomberg.com/news/2012-02-17/czech-stocks-cez-komercni-banka-new-world-resources-move.html | 2 | 17 | 37e502cc7bb7addda7c311fff97aa420538413ca | The Czech Republic’s PX (PX) stock index
rose 2 percent to 1,015.4 at its close in Prague , extending this
week’s gains to 2.5 percent. The following were among the most active equities on the
Prague Stock Exchange today. Stock symbols follow company names. CEZ AS (CEZ) , the country’s biggest power utility, added
2.6 percent to 840 koruna, its highest in more than six months.
Electricity for next-year delivery in Germany , where CEZ exports
part of its output, rose 2 percent this week to 52.75 euros per
megawatt-hour. New World Resources Plc (NWR) , the biggest Czech coking-
coal producer, jumped 4.6 percent, the most since Feb. 2, to 159
koruna. Commodities rallied, lifting benchmark coal derivatives
1.3 percent to $114.25 a metric ton in the Netherlands. Telefonica Czech Republic AS (SPTT) rose the most since
October 2008, adding 7.2 percent to 392.2 koruna, after the
phone company’s fourth-quarter profit beat analysts’ estimates. To contact the reporter on this story:
Krystof Chamonikolas in Prague at
kchamonikola@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at gserkin@bloomberg.net | 2012 | czech-stocks-cez-komercni-banka-new-world-resources-move |
Vietnam Bonds Gain for Seventh Week on Rate Outlook; Dong Rises | By Bloomberg News | 2012-02-17T09:02:49Z | http://www.bloomberg.com/news/2012-02-17/vietnam-bonds-gain-for-seventh-week-on-rate-outlook-dong-rises.html | 2 | 17 | 1741dd133f1ba2963983a44c0736920c44caf668 | Vietnam ’s five-year government bonds
gained for a seventh week on speculation interest rates will be
cut. The dong advanced. The State Bank of Vietnam instructed lenders to “reduce
interest rates to levels that are suitable to the macroeconomic
situation,” according to a statement posted on its website on
Feb. 13. Inflation (VNCPIYOY) cooled for a fifth month in January, with
consumer prices rising 17.3 percent from a year earlier,
according to official data. “The expectation is that the central bank will lower the
interest rate in the future,” said Nguyen Duy Phong, a Ho Chi
Minh City-based analyst at Viet Capital Securities. “In
conjunction with inflation slowdown, investors are heavily
investing in bonds.” The yields on five-year notes fell 14 basis points, or 0.14
percentage point, this week to 12.23 percent, according to a
daily fixing from banks compiled by Bloomberg. The rate dropped
two basis points today. The dong strengthened 0.2 percent this week to 20,833 per
dollar as of 3:54 p.m. in Hanoi, according to data compiled by
Bloomberg. The currency was little changed today. The central
bank set the reference rate at 20,828, its website showed. The
dong is allowed to trade as much as 1 percent on either side of
the official rate. To contact Bloomberg News staff for this story:
Nguyen Kieu Giang in Hanoi at
giang1@bloomberg.net To contact the editor responsible for this story:
Sandy Hendry at
shendry@bloomberg.net | 2012 | vietnam-bonds-gain-for-seventh-week-on-rate-outlook-dong-rises |
Madoff Trustee Picard Seeks Fees to Bring Total to $273 Million | By Linda Sandler | 2012-02-18T05:01:01Z | http://www.bloomberg.com/news/2012-02-17/madoff-trustee-picard-s-fees-may-top-270-million-since-con-man-s-arrest.html | 2 | 17 | d8933e21b68c35f5b99ec303463af0d793002669 | Irving Picard , the trustee
liquidating Bernard L. Madoff’s money management firm, sought
court approval of a payment that would bring total fees for him
and his law firm to about $273 million since the con man’s 2008
arrest. Picard and Baker & Hostetler LLP asked a judge to grant
them $48 million in fees and $1.2 million in expenses for the
four months through Sept. 30, making their eighth fee request in
a filing yesterday in U.S. Bankruptcy Court in Manhattan . About
10 percent of the payments are deferred. Picard, who filed 1,000 suits seeking $100 billion from
banks such as HSBC Holdings Plc (HSBC) and JPMorgan Chase & Co. ,
appealed judges’ rulings in those two cases and others on Feb.
16 that had tossed about $30 billion of his claims. Recoveries for Madoff customers have climbed to about $9
billion, including amounts that parties have agreed to pay the
estate, Picard said in the filing. About $6.4 billion isn’t
available for distribution because it is tied up in court
challenges or being held in reserve, according to the trustee’s
website. U.S. District Judge Jed Rakoff, who tossed about $9 billion
of damages demanded by Picard from HSBC and feeder funds,
challenged Picard’s fees in a court hearing about the trustee’s
$59 billion suit against defendants including UniCredit SpA (UCG) and
Sonja Kohn, the founder of Bank Medici AG. “I just keep reading in the papers how much is being paid
to Picard,” Rakoff said. Amanda Remus, a Picard spokeswoman, didn’t immediately
respond to an e-mail seeking comment yesterday on the trustee’s
fees, which are paid by the Securities Investor Protection Corp.
that hired him to liquidate the Madoff brokerage. The main case is Securities Investor Protection Corp. v.
Bernard L. Madoff Investment Securities LLC, 08-ap-1789, U.S.
Bankruptcy Court, Southern District of New York (Manhattan). To contact the reporter on this story:
Linda Sandler in New York at
lsandler@bloomberg.net To contact the editor responsible for this story:
John Pickering at jpickering@bloomberg.net | 2012 | adoff-trustee-picard-s-fees-may-top-270-million-since-con-man-s-arres |
USDA Boxed Beef Cutout Midday Prices for February 17 | By Michael Carone | 2012-02-17T16:52:42Z | http://www.bloomberg.com/news/2012-02-17/usda-boxed-beef-cutout-midday-prices-for-february-17-table-.html
February 17 (Bloomberg) | 2 | 17 | eaa0a138e3534c24baef8d48cb1fbe9c | from cattle carcasses weighing 550-850 pounds. Cutout values are
separated into three main product types. Fabricated loads are beef cuts
taken from an animal's ribs, chuck, round, loin, brisket, short plate
and flank; 50 percent loads are 50 percent lean beef trimmings. Ground
loads may contain 73, 75, or 80 percent ground beef. A typical
refrigerated truckload carries 40,000 pounds. Choice 1-3 grade is a better grade than Select 1-3, partly because
Choice cuts have more fat, or marbling, than Select cuts. Grade quality is determined using a 1-5 yield grade scale. A rating
of 1 is the highest ratio of muscle to fat, while 5 is the lowest.
Marbling is an important flavor factor. | 2012 | usda-boxed-beef-cutout-midday-prices-for-february-17-table- |
Slain Virginia Student Was Angry Days Before Death, Defense Witnesses Say | By Bonnie V. Winston and Tom Schoenberg | 2012-02-17T21:23:51Z | http://www.bloomberg.com/news/2012-02-17/slain-virginia-student-was-angry-days-before-death-defense-witnesses-say.html | 2 | 17 | 2ea4f69ee8540e7587ab4528c6a13ee2f096e2ff | Days before a University of Virginia
lacrosse player allegedly killed his girlfriend, she hit him
with her purse and demanded to know if he’d exchanged text
messages with two women, according to testimony at the 24-year-
old’s murder trial. George W. Huguely V, seeking to portray the 2010 death of
fellow senior and women’s lacrosse team member Yeardley Love as
accidental and unintended, called two witnesses who described an
incident at Huguely’s apartment a few days before she was found
dead. “She asked who we were and she asked if George had been
texting us,” said Caroline Wattenmaker, then a high school
student visiting the university who Huguely took back to his
apartment after meeting her and a friend at a club. “She hit
George with her purse and he got up off the sofa and backed
away,” she told the jury in state court in Charlottesville,
Virginia . “He asked her to leave.” Huguely is charged with first-degree murder, robbery,
burglary, breaking and entering, grand larceny and murder in the
commission of a robbery. He faces as long as life in prison if
convicted. Another Room Her companion that day, Alice Billmire, testified that Love
appeared to be frustrated. Billmire said she was in another room
at the time Wattenmaker testified the altercation took place.
The two women described Huguely as “polite” and “perfectly
nice.” Love’s badly bruised body was discovered by a friend and
teammate who went to Love’s room in her apartment about 2 a.m.
on May 3, 2010, and found her face down in a pool of blood on
her pillow. Huguely told police investigators that he entered Love’s
apartment through an unlocked front door and then kicked open
the door to her bedroom, where police found her body. Huguely
said the two had an altercation during which he “shook Love and
her head repeatedly hit the wall,” according to an affidavit
filed by prosecutors. Prosecutors spent nine days presenting their case, which
included testimony from former students and medical experts. The
government wrapped up its evidence on Feb. 15. In addition to the two women, the jury heard from Huguely’s
aunt, Alina Massaro. She narrated video played for the jury that
was taken from a surveillance camera at a Charlottesville
restaurant. In the video, taken two days before the alleged
murder, Huguely, who Massaro referred to as Georgie, is seen
hugging his 17-and 18-year-old cousins and holding hands with
Love. Impact Profile Michael Woodhouse, a bio-mechanical consultant and
associate research professor at Eastern Virginia Medical School,
testified today that he saw no evidence of an impact profile on
a piece of drywall that came from Love’s apartment. Today’s trial was cut short because one of Huguely’s
defense lawyers was sick. The illness prevented the defense team
from having its medical experts testify. The trial is scheduled to resume tomorrow. The case is Commonwealth of Virginia v. Huguely, 11-102,
Circuit Court for the City of Charlottesville,
(Charlottesville). To contact the reporters on this story:
Tom Schoenberg in Washington at
tschoenberg@bloomberg.net ;
Bonnie V. Winston in Richmond, Virginia, at
bvwinston@yahoo.com To contact the editor responsible for this story:
Michael Hytha at
mhytha@bloomberg.net | 2012 | slain-virginia-student-was-angry-days-before-death-defense-witnesses-say |
South Korea Equity Movers: Korea Aerospace, Woori Finance | By Saeromi Shin | 2012-02-17T00:34:16Z | http://www.bloomberg.com/news/2012-02-17/south-korea-equity-movers-korea-aerospace-woori-finance.html | 2 | 17 | 9c67e5abf39cbf0ce413102ed2b5cd2dd4304621 | Shares of the following companies
had unusual moves in South Korea trading . Stock symbols are in
parentheses and prices are as of 9:16 a.m. in Seoul. The Kospi Index (KOSPI) rose 26.24, or 1.3 percent, to 2,023.69,
set to post a 1.5 percent gain for the week. It would be the
gauge’s seventh straight weekly advance. Korea Aerospace Industries Ltd. (047810) (047810 KS), South Korea’s
only aircraft manufacturer, dropped 2.2 percent to 32,850 won.
Italy’s Finmeccanica SpA (FNC) won an order valued at an estimated $1
billion from the Israeli air force for combat training jets,
beating an offer from South Korea. SK Innovation Co. (096770) (096770 KS), South Korea’s biggest
refiner, added 1.6 percent to 189,000 won. SK is reviewing
various acquisition targets including Chaparral Energy Inc. of
the U.S., after it raised funds from the sale of its Brazilian
unit, according to a regulatory filing. Woori Finance Holdings Co. (053000) (053000 KS), South Korea’s
biggest bank holding company by assets, rose 3.8 percent to
12,350 won, set for the steepest gain since Feb. 2. Fourth-
quarter profit jumped almost sevenfold as provisions against bad
loans declined and lending margin widened. To contact the reporter on this story:
Saeromi Shin in Seoul at
sshin15@bloomberg.net To contact the editor responsible for this story:
Darren Boey at
dboey@bloomberg.net | 2012 | south-korea-equity-movers-korea-aerospace-woori-finance |
Turkey Yields Fall to 4-Month Low on Cheaper Bank Funding | By Selcuk Gokoluk | 2012-02-17T16:27:43Z | http://www.bloomberg.com/news/2012-02-17/turkey-yields-fall-as-lira-gains-lead-to-cheaper-bank-funding.html | 2 | 17 | d2bcb306010638e9c1fa86904c7a7d01627d684d | Turkish bond yields dropped to the
lowest level in almost four months after a lira rally this year
prompted the central bank to provide cheaper funding and keep
currency appreciation under control. Yields (BENCH) on the benchmark two-year debt fell 15 basis points,
or 0.15 percentage point, to 9.21 percent, the first decline in
four days and the lowest level since Oct. 20, raising this
week’s retreat to 25 basis points. The lira strengthened 0.3
percent to 1.7566 per dollar, lifting this year’s gains to 7.7
percent, the third-biggest appreciation among emerging markets
in Europe , Africa and the Middle East . Turkey ’s central bank lent 7 billion liras ($4 billion)
today in a one-week repurchase agreement auction at its lowest
annual funding rate of 5.75 percent, after receiving 28.4
billion liras in bids. The bank in Ankara also provided 5
billion liras in a one-month repo auction at an average annual
rate of 10.21 percent against bids of 19.7 billion liras. The
rate charged today was lower than the 10.68 percent levied in
the previous one-month auction on Feb. 10 of the same amount. “The central bank talked very dovish in its last
communications meeting and it did not want a speedy appreciation
of the lira,” Tolga Senefe, head of treasury at Anadolubank AS
in Istanbul, said in an e-mailed response to Bloomberg’s
questions. The lira declined 18 percent in the biggest depreciation
worldwide last year as the central bank cut interest rates to a
record low of 5.75 percent and doubled reserve requirement to
curb a widening current account deficit that the bank said
threatened the nation’s financial stability. The bank halted
lending at the 5.75 percent rate for two weeks after the lira
weakened to a record low of 1.9224 against the dollar on Dec.28. To contact the reporter on this story:
Selcuk Gokoluk in Istanbul at
sgokoluk@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at
gserkin@bloomberg.net | 2012 | urkey-yields-fall-as-lira-gains-lead-to-cheaper-bank-funding |
Demand Media Rises Most Since January 2011 on Earnings: Los Angeles Mover | By Rob Golum | 2012-02-17T17:54:55Z | http://www.bloomberg.com/news/2012-02-17/demand-media-rises-most-since-january-2011-on-earnings-los-angeles-mover.html | 2 | 17 | 91006b95e046d864d3a11a62a1e6c9adc7c85aeb | Demand Media Inc. (DMD) , the online
operator of websites eHow.com and LiveStrong.com, rose the most
in more than a year after fourth-quarter adjusted profit topped
analysts’ estimates. Demand Media, based in Santa Monica , California , rose 23
percent to $7.33 at 12:53 p.m. in New York and had climbed as
much as 25 percent, the biggest intraday gain since January
2011. The shares had declined 11 percent in 2012 before today. The company reported profit of 8 cents a share, excluding
items, after markets closed yesterday, exceeding the 7-cent
average of seven analyst estimates compiled by Bloomberg. Sales
of $81.3 million, excluding items, trailed the average estimate
of $82.2 million. Demand Media reported a fourth-quarter net loss of $6.4
million, or 8 cents a share, as revenue rose 15 percent to $84.4
million. For the current quarter, the company projected profit of 5
cents to 6 cents a share, excluding items, compared with the 5-
cent average of nine analysts’ estimates. The company forecast
revenue of $78 million to $80 million, excluding items. Analysts
estimate $81.6 million. To contact the reporter on this story:
Rob Golum in Los Angeles at
rgolum@bloomberg.net To contact the editor responsible for this story:
Anthony Palazzo at
apalazzo@bloomberg.net | 2012 | demand-media-rises-most-since-january-2011-on-earnings-los-angeles-mover |
Suntech Boosts 2012 Guidance After Stronger Solar Shipments | By Justin Doom | 2012-02-17T15:14:43Z | http://www.bloomberg.com/news/2012-02-17/suntech-boosts-2012-guidance-after-stronger-solar-shipments.html | 2 | 17 | 93e41f50e413a1d6f90ab28d5f3dd140caff3312 | Suntech (STP) Power Holdings Co., the
world’s biggest maker of silicon-based solar panels, rose the
most in a week after boosting its forecast for 2011 earnings on
stronger-than-expected shipments. Suntech rose 14 percent to $3.85 at 10:07 a.m. in New York,
the biggest intraday gain since Feb. 9. Earlier it climbed 17
percent. The shares have climbed 74 percent this year. The company, based in Jiangsu, China , said it expects
shipments for last year to total 2.09 gigawatts, above the
previous forecast of 2 gigawatts. Revenue will range from $610
million to $630 million for the fourth quarter, according to a
statement today. “Our sales and operations teams both performed well in the
fourth quarter,” Suntech Chairman Zhengrong Shi said in the
statement. “We exceeded shipment guidance and improved our cash
position through ongoing management of accounts receivable and
inventory.” The company took a charge of $571 million in the third
quarter to write down goodwill after a plunge in its market
value triggered by declining prices and margins for solar
products across the industry. Suntech will issue its full-year
results on March 8 at 8 a.m. New York time. To contact the reporter on this story:
Justin Doom in New York at
jdoom1@bloomberg.net To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net | 2012 | suntech-boosts-2012-guidance-after-stronger-solar-shipments |
Greece Said to Plan Law to Impose Losses on Investors Who Shun Debt Swap | By Brian Parkin and Maria Petrakis | 2012-02-17T17:34:09Z | http://www.bloomberg.com/news/2012-02-17/greece-said-to-plan-law-to-impose-losses-on-investors-who-shun-debt-swap.html | 2 | 17 | 4dd7f368d5681c2ccd13275a9b521be9f8d8ba57 | The Greek government is drawing up
legislation that could be used to impose losses on investors who
don’t support the debt swap that’s part of the country’s new
bailout package, said two euro-region officials familiar with
the situation. The law may be introduced to parliament in Athens in the
coming days, said one of the officials, who spoke on condition
of anonymity because the deliberations are confidential. Euro
region finance ministers are prepared to back the use of so-
called collective action clauses if a voluntary debt swap
doesn’t draw enough participation, the other person said. Getting investors to agree a writedown on the debt is a
condition for sealing a second Greek bailout as officials seek
to cut Greece’s debt load. Euro-area finance ministers have
slated a Feb. 20 meeting as a make-or-break effort to solve open
questions on a new Greek rescue agreement, Deputy German
Finance Minister Steffen Kampeter said in Hamburg last night. Chancellor Angela Merkel , Italian Prime Minister Mario Monti and Greek Prime Minister Lucas Papademos held a
conference call earlier today and are confident that the Feb. 20
meeting will “find a solution for open questions,” said Steffen Seibert, Merkel’s chief spokesman. Giorgios Zanias, chairman of the Council of Economic
Advisors to the finance ministry , didn’t respond to calls on his
cellphone. The European Central Bank is swapping its Greek bonds for
new ones to ensure it isn’t forced to take losses in a debt
restructuring, three euro-area officials said yesterday. To contact the reporters on this story:
Brian Parkin in Berlin at
bparkin@bloomberg.net To contact the editor responsible for this story:
John Fraher at jfraher@bloomberg.net | 2012 | greece-said-to-plan-law-to-impose-losses-on-investors-who-shun-debt-swap |
Astra Agro Sells 5,000 Tons of Palm Oil at Auction | By Femi Adi | 2012-02-17T10:12:53Z | http://www.bloomberg.com/news/2012-02-17/astra-agro-sells-5-000-tons-of-palm-oil-at-auction-table-.html | 2 | 17 | a54d3dc8b2a393d04d2a4d2ae385b5cd223d14b6 | PT Astra Agro Lestari , Indonesia ’s
biggest listed plantation company by market value, accepted bids
for 5,000 metrics tons of the 7,500 tons of palm oil it offered
at an auction in Jakarta today. The following table lists the results of the sale, based on
a faxed statement. The volumes are given in metric tons, while
prices are in rupiah per kilogram unless stated otherwise. Indonesia is the world’s largest producer of palm oil. To contact the reporter on this story:
Femi Adi in Jakarta at
fadi1@bloomberg.net ; To contact the editor responsible for this story:
James Poole at
jpoole4@bloomberg.net | 2012 | astra-agro-sells-5-000-tons-of-palm-oil-at-auction-table- |
Federal Workers Face ‘Unprecedented Assault’ in U.S. Budget War | By Kristin Jensen | 2012-02-17T05:01:32Z | http://www.bloomberg.com/news/2012-02-17/federal-workers-face-unprecedented-assault-in-u-s-budget-war.html | 2 | 17 | 7798f41015444178b49f29390cf33357 | Congress is considering ways to cut
U.S. federal workers’ pay, benefits and possibly their jobs even
as a record number are borrowing against pensions. Concern over the situation almost derailed a deal to extend
the payroll tax cut this week as several lawmakers objected to a
provision that would have required federal workers to contribute
more to their pensions. In the end, negotiators agreed to target
newly hired federal workers. There’s more ahead, as moves to hold down government
salaries mirror tightening at the state and local levels.
Congress is considering extending a two-year federal pay freeze
for another year, through 2013. Bills designed to reduce the
federal workforce continue to be introduced. And another measure
is pending that includes across-the-board requirements for more
contributions to pensions. “We are witnessing an unprecedented assault on public
employees and federal employees in particular,” said U.S.
Representative Gerald Connolly, a Democrat whose suburban
Virginia district has one of the nation’s largest concentrations
of government workers. “I am mortally offended on their behalf
that they continue to be singled out for every sacrifice.” Lawmakers in Maryland , home to more than 300,000 federal
workers, have also joined the fight. Democratic Senator Ben Cardin and Democratic Representative Chris Van Hollen , whose
district includes the Washington suburb of Bethesda, helped kill
the initial pension provision in the payroll tax deal. Future Workers “We still strongly oppose the provision that raises $15
billion to help offset the cost of this package from future
workers,” the two lawmakers said in a statement yesterday. President Barack Obama called both Van Hollen and Cardin on
the evening of Feb. 15 to press them to agree to a deal. Cardin
said Obama assured him that federal employees’ salaries and
benefits wouldn’t become a routine target. “The president was pretty strong on his commitment to
helping us make sure that doesn’t happen,” Cardin told
reporters. All told, there are about 4 million federal employees,
according to Census data gathered by the National Treasury
Employees Union. California , Virginia, Maryland and Texas have
the highest numbers of workers; more than 80 percent are outside
the Washington metropolitan area. Federal figures show those employees and federal retirees
may be in distress, even as the Federal Reserve Bank of New York
says household indebtedness among the general population is
declining. One in five participants in the federal thrift
savings retirement plan, or a record 893,200 people, have loans
against their accounts, according to the Federal Retirement
Thrift Investment Board. ‘Same Struggles’ That shouldn’t be a surprise, said Julie Tagen, legislative
director of the 300,000-member National Active and Retired
Federal Employees Association in Alexandria, Virginia. Most
federal workers make between $25,000 and $75,000 a year, and
they are coping with a pay freeze, she said. “Everyone forgets that federal employees have the same
struggles that everyone else has, and they’re middle class,”
Tagen said. “There’s a lot of hardship out there.” State workers have been squeezed for years as local
officials struggle with budget shortfalls and underfunded
pensions. Thirty-three states have assets of less than 80
percent of what they need to pay out the benefits already
promised to their workers, according to an annual study of
pensions by Bloomberg Rankings. Where’s ‘Nexus?’ While the federal government is also weighed down by
deficits, what bothers Connolly about the current battles is
that there is no obvious connection between the pieces of
legislation, such as a payroll tax cut, and the money being
sought to fund them. That’s different than a highway bill that
assesses gas taxes on drivers using the roads. “What is the nexus?” Connolly said in a telephone
interview. “Republicans are afraid or unwilling to ask anybody
else to make any kind of sacrifice.” Federal employees aren’t helped by reports such as a recent
one from the Congressional Budget Office that found federal
workers’ salaries top those in the private sector. Republican
presidential candidates, including former Massachusetts Governor
Mitt Romney, point to the disparity while campaigning. “People who are government servants, public servants,
should not be paid more than the taxpayers who are paying for
it,” Romney said during a Jan. 8 candidate debate. Pay Scales There may be little sympathy for federal workers among the
general public, where pensions with set benefits have become
scarce and U.S. unemployment hovers at 8.3 percent. Studies of
government salaries show benefits outpace the private sector. The reports can be misleading, said James Horney, vice
president of federal fiscal policy at the Center on Budget and
Policy Priorities , a nonpartisan research institute in
Washington . While less-educated workers have slightly higher
salaries in federal jobs, better-educated employees are
underpaid, he said. “They clearly have decided this is a target to go after,”
Horney said. If qualified people see too many cutbacks on the
federal level, the government will have trouble finding highly
skilled workers that can handle advanced scientific and
information system work, he said. “We’re going to have a very hard time attracting the kind
of civil servants that we really want and need,” Horney said. Advocates for federal employees are fighting back with
letters, calls and plans to visit lawmakers. Tagen estimates
that her group flooded Capitol Hill with more than 7,500 calls
on Feb. 15 from all 50 states. She’s now focusing on getting
members to attend town-hall meetings during the congressional
recess over the Easter holiday. Tagen said her main worry is that Congress and Obama will
continue to look to federal employees to make more sacrifices.
While Republicans are pushing most of the cutbacks now, Obama
had proposed the two-year pay freeze, and savings from federal
pensions were also in the budget plan released Feb. 13. “They’re just looked at as an ATM machine,” Tagen said. To contact the reporter on this story:
Kristin Jensen in Washington at
kjensen@bloomberg.net ; To contact the editor responsible for this story:
Jodi Schneider at
jschneider50@bloomberg.net | 2012 | federal-workers-face-unprecedented-assault-in-u-s-budget-war |
Skye Bank of Nigeria Advances Fifth Day, Heads for Month-High | By Vincent Nwanma | 2012-02-17T12:12:48Z | http://www.bloomberg.com/news/2012-02-17/skye-bank-of-nigeria-advances-fifth-day-heads-for-month-high.html | 2 | 17 | 58885e35350850cdba27713efdf0cb1b0a93d2ac | Skye Bank Plc (SKYEBANK) , a Nigerian lender,
advanced for a fifth day, gaining 4.8 percent to 3.68 naira as
of 12:54 p.m. in Lagos. A close at this price will be its
highest since Jan. 20. To contact the reporter on this story:
Vincent Nwanma in Lagos at
vnwanma@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at
gserkin@bloomberg.net | 2012 | skye-bank-of-nigeria-advances-fifth-day-heads-for-month-hig |
Japan Stocks Rise as Yen Reaches Four-Month Low, U.S. Data Beats Estimates | By Norie Kuboyama | 2012-02-17T06:43:02Z | http://www.bloomberg.com/news/2012-02-17/japanese-stocks-advance-on-u-s-economic-data-optimism-for-greek-bailout.html
Japanese stocks rose after the yen
fell to a four-month low as investment banks including Goldman
Sachs Group Inc. projected the currency will continue to slide,
and U.S. economic reports beat expectations, boosting the
outlook for exporters. Honda Motor Co. (7267) , a carmaker that gets almost 85 percent of
its sales abroad, rose 2.4 percent. Nikon Corp. (7731) , a camera maker
that counts on Europe for 23 percent of its revenue, climbed 3.9
percent as optimism rose that Greece will secure a debt bailout.
Inpex Corp. (1605) , Japan’s top oil explorer by market value, jumped
4.8 percent after crude prices advanced. The Nikkei 225 Stock Average rose 1.6 percent to 9,384.17
at 3 p.m. in Tokyo , its highest close since Aug. 4. The broader
Topix Index gained 1.3 percent to 810.45, with a weekly gain of
4 percent. More than twice as many shares rose as fell on the
equity gauge. “Japanese company earnings are unlikely to get worse while
the yen’s advance against the dollar is reversing and the U.S.
economy is recovering,” said Hisakazu Amano, who helps oversee
the equivalent of $29 billion at T&D Asset Management Co. in
Tokyo. “Uncertainties on European debt issues are subsiding.” U.S. Data Futures on the Standard & Poor’s 500 Index fell 0.1 percent
today. The index advanced 1.1 percent in New York yesterday
after reports showed Americans filed the fewest claims for
jobless benefits since March 2008 and builders broke ground on
more houses than expected. Manufacturing (OUTFGAF) in the Philadelphia
region expanded this month at the fastest pace in four months as
orders and sales rose. Stocks also advanced after euro-area officials said the
European Central Bank is swapping its Greek bonds for new
securities to prevent losses in a debt restructuring. European
governments are mulling cutting interest rates on emergency
loans to Greece and using contributions from the ECB to plug a
financing gap in the second bailout for Athens , people familiar
with the discussions said. “It’s a distinct improvement from the fourth quarter last
year from the perspective of investor confidence and risk
appetite,” said Prasad Patkar, who helps manage about $1
billion at Platypus Asset Management Ltd. in Sydney. “When
there’s a bit of relief from the European front, the markets can
focus on fundamentals, which seem to be improving by the day.” Exporters Advance Honda, Japan ’s second-largest carmaker by revenue, gained
2.4 percent to 2,950 yen. Nikon rose 3.9 percent to 2,127 yen. Exporters extended gains as the yen fell against the dollar,
the weakest since Oct. 31. The currency’s slide accelerated as
investment banks from Goldman Sachs Group to JP Morgan Chase &
Co. today said the yen will continue to weaken after the Bank of
Japan unexpectedly expanded an asset-purchase program this week.
A weaker yen boosts overseas income for Japanese companies. The following were among the most active shares in the
Japanese market today. Stock symbols are in parentheses after
company names. Oil companies : Inpex (1605 JT) led companies in the sector
higher after crude oil for March delivery traded near its
highest in six weeks, extending yesterday’s 0.5 percent rise to
$102.31 in New York. Inpex jumped 4.8 percent to 551,000 yen. Japan Petroleum
Exploration Co. (1662) (1662 JT), the nation’s second-largest oil
explorer by market value, gained 2.6 percent to 3,745 yen. Japan
Drilling Co. (1606) (1606 JT), an offshore exploration contractor,
climbed 4.2 percent to 2,701 yen. Shipping companies: The three biggest companies in the
sector declined the most in the 33 Topix industry groups after
the Baltic Dry Index (BDIY) , a gauge of cargo rates, yesterday fell 1.1
percent, the biggest drop since Feb. 2. Nippon Yusen K.K. (9101) (9101 JT) slid 1.7 percent to 234 yen.
Mitsui O.S.K. Lines Ltd. (9104) (9104 JT) fell 1.4 percent to 348 yen,
while Kawasaki Kisen Kaisha Ltd. (9107) (9107 JT) lost 0.6 percent to
177 yen. Bridgestone Corp. (5108) (5108 JT), the world’s biggest tiremaker
by market value, jumped 4 percent to 1,833 yen after saying it
expects net income to surge 63 percent to 168 billion yen ($2.1
billion) this year on growing sales. The tire company also said
it will spend about 4.7 billion yen to boost production capacity. Daiwa House Industry Co. (1925) (1925 JT), a builder, climbed 3.1
percent to 1,015 yen. Mitsubishi UFJ Morgan Stanley Securities
Co. boosted stock’s rating to “outperform” from “neutral,”
saying earnings will likely rise next fiscal year on demand for
facilities and rental accommodations. Japan Tobacco Inc. (2914) (2914 JT), Asia ’s largest cigarette
maker by market value, advanced 2.8 percent to 429,000 yen.
Citigroup Global Markets Japan Inc. raised the target price on
the stock to 520,000 yen from 450,000 yen, maintaining its
“buy” rating. Mitsubishi Corp. (8058) (8058 JT), Japan’s biggest commodity
supplier, gained 2.6 percent to 1,879 yen. The trading house
bought an 18 percent stake in Anglo American Plc’s Peruvian
copper unit, building on their mining partnership, Mitsubishi
said today in a statement. Trend Micro Inc. (4704) (4704 JT), a security software developer,
tumbled 8.8 percent to 2,278 yen, the biggest drop on the Nikkei
225 (NKY) , after projecting a 32 percent drop in net income this
quarter on a 6.2 percent fall in sales. Nomura Holdings Inc. cut
its target price on the stock to 2,400 yen from 2,550 yen. Uny Co. (8270) (8270 JT) soared 6.6 percent to 747 yen to lead the
Nikkei 225’s advance after the department-store operator said it
will offer 1,780 per share to buy out Circle K Sunkus Co. (3337
JT). The convenience-store chain surged by its daily limit of
300 yen, or 23 percent, to 1,630 yen. | 2 | 17 | 1ce3aa23c9f245f795ca8783daf68924 | Tokyo. Editor: Jim Powell . To contact the reporter on this story:
Norie Kuboyama in Tokyo at
nkuboyama@bloomberg.net To contact the editor responsible for this story:
Nick Gentle at
ngentle2@bloomberg.net . | 2012 | japanese-stocks-advance-on-u-s-economic-data-optimism-for-greek-bailou |
Iberdrola, Endesa Will ‘Never Accept’ Loan Writedowns in Spain | By Ben Sills | 2012-02-17T15:06:18Z | http://www.bloomberg.com/news/2012-02-17/iberdrola-endesa-will-never-accept-loan-writedowns-in-spain.html | 2 | 17 | 073cd17e5ccfac4999c2be88be39a35fbd7389db | Iberdrola SA (IBE) , Gas Natural SDG SA (GAS) and
Endesa SA (ELE) will “never accept” any writedown on loans to
Spain ’s electricity system, the industry’s lobby group said. Any so-called haircut on power-system debts would be an
expropriation, Eduardo Montes, chairman of the Madrid-based
Unesa group, said today at a press conference in the city.
“That would be very, very serious and we wouldn’t be
impassive,” he said. Spain’s electricity system has run up a 24 billion-euro
($32 billion) debt by charging consumers less than the revenue
booked by utilities. Industry Minister Jose Manuel Soria said
yesterday that power companies will have to share the burden of
eliminating debts as the nation works to cut its budget deficit . Soria wasn’t insisting a writedown was on the table,
Montes said. “The minister has never spoken to me of a
haircut,” he said. “We would never accept it.” Deputy Prime Minister Soraya Saenz de Santamaria twice
passed up invitations to rule out haircuts for the power
industry at a separate briefing in Madrid today. The cost of delivering power in Spain is set to outstrip
revenue from electricity bills by 5.9 billion euros next year,
Unesa estimates, dwarfing a legal limit of 1.5 billion euros for
the so-called tariff deficit set by the previous administration. Soria stopped granting subsidies for new renewable-energy
plants last month to shore up state funds. Montes urged the
government to extend the subsidy freeze to projects approved and
not yet commissioned. The row over financing of the electricity system piles more
pressure on Mariano Rajoy’s administration as it struggles to
convince investors it can meet a target to lower its budget
deficit to 4.4 percent of gross domestic product this year, from
about 8 percent last year, while simultaneously trying to create
jobs in a country where 23 percent of workers are unemployed. To contact the reporter on this story:
Ben Sills in Madrid at
bsills@bloomberg.net To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net | 2012 | iberdrola-endesa-will-never-accept-loan-writedowns-in-spain |
IOB and Corpy CDs Deals:Indian Money Market | By Shraddha Kothari | 2012-02-17T12:32:36Z | http://www.bloomberg.com/news/2012-02-17/iob-and-corpy-cds-deals-indian-money-market.html | 2 | 17 | acc05f87dc261f5b2ad4f5057c34a09b5e57da63 | Following is a table showing certificate of
deposits dealt by Indian companies.The data has been provided by Trust Financial
Consultancy Services Ltd,Mata Securities India Pvt Ltd,SPA Securities Ltd.
Contributed via: Bloomberg Publisher WEB Service Provider ID: 5816a75643c44c53a24bec73adc4b053 | 2012 | iob-and-corpy-cds-deals-indian-money-marke |