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Sep 14, 2010

The big Banks Never Lose

GATA : THE GATA DISPATCH: Dan Norcini Commodity Inflation is loose, portending ruin of middle class / Anglo Gold hustles to close gold hedges / Gold gains as central banks stock up. Sep. 14th., 2010

Dan Norcini: Commodity inflation is loose, portending ruin of middle class

7:35p ET Tuesday, September 14, 2010
Dear Friend of GATA and Gold (and Silver and Everything Else):
Dan Norcini's nightly market commentary at Jim Sinclair's Internet site tonight may be even more compelling than usual. Norcini writes:
"The funny money has made its way into the commodity sector, driving food prices to unseemly high levels once again just as happened in 2008. Corn is now within spitting distance of $5, wheat is more than $7, soybeans are over $10, sugar is over 24 cents per pound, cotton is closing in on $1, coffee is near $2 per pound wholesale (a 13-year high), cattle are just shy of $1 per pound, and bellies are trading over $1.50 per pound for fresh product. In short, the consumer is on the verge of watching his disposable income decimated by high food prices just when a record number of Americans are on food stamps and either unemployed or underemployed. I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has been loosed upon the land that portends the ruin of the middle class."
Norcini's commentary is headlined "Hourly Action In Gold From Trader Dan" and you can find it at JSMineSet.com here:
http://jsmineset.com/2010/09/14/hourly-action-in-gold-from-trader-dan-33...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

AngloGold hustles to close gold hedges

AngloGold Plans Share, Convertible Bond Sales to Help It End Gold Hedging
By Simon Casey
Bloomberg News
Tuesday, September 14, 2010
http://www.bloomberg.com/news/2010-09-14/anglogold-ashanti-plans-share-b...
LONDON -- AngloGold Ashanti Ltd., Africa's biggest gold producer, plans to sell 15.8 million new shares and offer bonds that convert into the same number of American depositary receipts to fund an end to its gold hedges.
There will be over-allotment options to sell an additional 2.37 million shares and the same number of convertible bonds, the Johannesburg-based company said today in a statement. The company said it will use the proceeds along with cash on hand and credit facilities to "effectively eliminate its gold hedging position."
The company's ADRs, each representing one ordinary share, rose $2.13, or 4.8 percent, to close at $46.72 in New York trading before the bond and stock sales were announced.
AngloGold, in which hedge-fund firm Paulson & Co. holds a 12 percent stake, is among gold-mining companies reducing forward sales of the metal to take advantage of record prices. Producers cut hedges by about 780,000 ounces to 6.75 million ounces in the first quarter, research company GFMS Ltd. said in a June report.
Gold futures for December delivery rose to a record $1,276.50 an ounce on the Comex in New York today.
UBS AG, Morgan Stanley, Citigroup Inc., and Deutsche Bank AG are working for AngloGold on the sales.

Gold gains as central banks stock up

'Stock up'? 'Stop dishoarding' is more like it.
* * *
By Javier Blas
Financial Times, London
Tuesday, September 14, 2010
http://www.ft.com/cms/s/0/f99f518a-c025-11df-b77d-00144feab49a.html
Gold prices have pushed to a fresh record amid forecasts that central banks will be net buyers of bullion this year for the first time in two decades, the clearest sign of the rehabilitation of bullion after the financial crisis.
The shift marks a turnround after heavy disposals by European central banks over the past 10 years, when gold was seen as a non-yielding unattractive asset. Monetary institutions then swapped their bullion for yielding sovereign debt

GFMS, the consultancy that compiles benchmark statistics for gold, said that central banks would buy about 15 tonnes of bullion on a net basis this year, a situation last seen in 1988. The swing comes on the back of buying by Russia and several Asia-based central banks and the collapse of sales in Europe.
The shift in central banks' attitude toward gold, coupled with renewed US dollar weakness on Tuesday, propelled gold prices to a fresh nominal high of $1,274.75 a troy ounce, up nearly 2 per cent on the day. Gold prices have risen about 15 per cent since January, boosted by worries about sovereign risks. Adjusted for inflation, gold prices are, however, still a long way from their all-time high above $2,300 in 1980 reached during the Soviet invasion of Afghanistan.
Philip Klapwijk, GFMS chairman, said gold prices could set fresh highs in the near term, trading above $1,300 an ounce, on the back of uncertainty about the global economy and concerns about high levels of debt in developed countries.
China, India, Saudi Arabia, and other countries have announced large additions of gold to their reserves since the start of the financial crisis in 2008, providing a psychological boost to bullion.
The consultancy said that even if current net buying by central banks remains relatively low, the shift is an important departure from the past decade, when central banks sold on average 442 tonnes of gold per year, equal to about 10 per cent of total bullion demand.

* * *

Join GATA here:
Toronto Resource Investment Conference
Saturday-Sunday, September 25-26, 2010
Metro Toronto Convention Center, Toronto, Ontario, Canada
http://www.cambridgeconferences.com/index.php/toronto-resource-investmen...

The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/

New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...

* * *
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http://gata.org/tshirts
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
http://www.goldrush21.com/
* * *
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To contribute to GATA, please visit:

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CNBC EVENING BRIEF: Hotshots of High-Frequency- 7 Traders You Should Know. Sep. 14th., 2010



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MarketWatch : Personal Finance Daily : In lawmakers' tax fight, we all could lose. Sep.14th., 2010

MarketWatch
Personal Finance Daily
SEPTEMBER 14, 2010

Tuesday's Personal Finance stories

By MarketWatch



Don't miss these top stories:
Who's going to win the fight brewing in Congress over extending or rejecting the Bush-era tax cuts? As Jeffrey Bartash writes in his Capitol Report today, the Democrats will -- if they stick together.

But that "sticking together" part is no sure bet; some conservative Democrats have said they're eager to extend those tax breaks for all Americans, breaking from other Democrats and President Obama, who've called for continuing those tax breaks solely for taxpayers who earn less than about $250,000 a year.

Income-tax rates are just one piece in a quantity of tax breaks expiring at the end of the year. There's the ever-present alternative-minimum-tax problem to consider -- the "patch" that Congress usually passes to reduce the number of people forced to pay this tax has yet to be approved for the 2010 tax year.

And of course there's the estate tax, which is not in effect at all this year and comes back at a relatively low $1 million exemption amount in 2011, if Congress doesn't act. There are capital-gains and dividend tax rates.

So much fun to be had, and all in the next four weeks, at which point lawmakers head off to their districts to campaign ahead of Election Day.

Read Bartash's story for more on the political wrangling over taxes, plus don't miss Ruth Mantell's Diary of a Recession Baby column for a look at how the recent increase in company mergers and acquisitions may be good news for investors and consumers, but is bad news for workers.

Taxpayers may get some bad news too: Ongoing uncertainty and tax-planning difficulty -- even into 2011. After all, everyone expected lawmakers to make sure the estate tax would not expire this year. Look what happened to that idea.

-- Andrea Coombes , Personal Finance editor

Washington tax fight is a game of chicken

The big fight in Congress over whether to extend the Bush tax cuts is a classic game of high-stakes chicken.
See story on Washington tax fight is a game of chicken.

THE JOB MARKET

Merger activity poses risks for workers

From Hewlett-Packard's purchase of 3Par and ArcSight to mining giant BHP Billiton's $38.6 billion takeover bid for Canadian fertilizer firm Potash Corp., companies are ramping up their merger activity. That may be good news for investors and consumers -- but workers often pay a price.
See story on merger activity poses risks for workers.

PERSONAL TECH

Consumer Reports still doesn't recommend iPhone 4

Consumer Reports magazine has reiterated it cannot recommend Apple Inc.'s iPhone 4, saying a flaw in the device's antenna design causes it to lose reception when held a certain way.
See story on Consumer Reports still doesn't recommend iPhone 4.

INVESTING

Energy, oil stocks top money manager's list

Investors should put individual securities "on the radar screen" while they wait for an opportunity to buy blue-chip issues at attractive prices, according to one money manager.
See story on energy, oil stocks top money manager's list.

Commentary: Why stocks are likely heading higher

As we move into the fall, everyone is scratching their heads about what the U.S. stock market will do next -- rally, bump along or drop. Let's check our trusty rearview mirror for clues.
See story on why stocks are likely heading higher.

Commentary: Top performer tracks corporate insiders

The year of the insider? The top performing investment adviser so far this year, among the couple of hundred tracked by the Hulbert Financial Digest, is a service that bases its investment recommendations on the behavior of corporate insiders.
See story on top performer tracks corporate insiders.

Pension funds eager to use SEC investor power tool

A new era of investor-corporate relations will begin next year when a landmark rule giving shareholders significantly more power becomes effective, and public pension funds are eagerly awaiting their opportunities to embrace the tool.
See story on pension funds eager to use SEC investor power tool.

TRAVEL

Travelers may soon saddle up for discount fares

An Italian company is about to take the wraps off a space-saving seat for commercial aircraft that promises a flying experience similar to riding a horse.
See story on travelers may soon saddle up for discount fares.

SMALL BUSINESS

Small-business lending bill clears Senate hurdle

The U.S. Senate voted narrowly Tuesday to close off debate on a Democrat-supported package of small-business incentives, including legislation setting up a $30 billion fund to help community banks offer loans to small businesses.
See story on small-business lending bill clears Senate hurdle.

Small businesses slightly more optimistic in August

Small-business owners grew slightly more optimistic about the economy in August, but most remain very cautious about plans to spend and invest, according to a trade group's latest survey.
See story on small businesses slightly more optimistic in August.

ECONOMY & POLITICS

Commentary: Banks can save the economy - just ask them

The Basel accords may ruin banking and kill credit. Analysts believe it will put a squeeze on the banking system. Critics, writing in such publications as Bank Accounting & Finance are calling for more study before implementation. Many banks say they won't opt in. One banking executive who studied the plan says what he thought was a "bread box" of rules is more like a "freight train."
See story on banks can save the economy - just ask them.

Commentary: 'Goldman Conspiracy' helps China beat U.S.

Goldman's "ultimate goal is hunting and killing China," warns Li Delin, the Chinese author of "The Goldman Sachs Conspiracy," a bestseller in China.
See story on 'Goldman Conspiracy' helps China beat U.S.

Commentary: White House talk may offer few results

The president's latest proposals to jump-start the economy are not likely to be any more successful than his previous efforts.
See White House talk may offer few results.

Establishment on edge as voters march to polls

Voters' antiestablishment mood gets put to the test on Tuesday, with seven states holding primaries and candidates backed by tea-party activists giving Republicans a run for their money in closely watched contests.
See story on establishment on edge as voters march to polls.

Business inventories rise 1% in July, U.S. says

U.S. business inventories rose 1.0% during July, the seventh consecutive monthly increase and the largest in two years, the Commerce Department reported Tuesday.
See story on business inventories rise 1% in July.

Mining Interactive : Tumi Obtains Additional and Invaluable Data from Boliden on 46 Drill Holes totaling 9,108m at its Sala Silver-Zinc discovery in Sweden. Sep. 14th., 2010



September 14, 2010
TUMI RESOURCES LTD.
TUMI OBTAINS ACCESS TO DATA FROM BOLIDEN ON 46 DRILL HOLES TOTALLING 9,108M IN THE COMPANY’S 100% OWNED SALA ZINC MINERALIZATION DISCOVERY PROJECT AREA IN SWEDEN
In return for the Boliden data Tumi will transfer 100% of the rights to its Stollbergsgruvan nr 1 licence to Boliden
  • Tumi completed a 2,282m drill program in 2008 with best results:
    -6.6m at 76 g/t silver, 7% zinc and 1.1% lead (Hole 08-001)
    -7.1m at 81 g/t silver and 10.4% zinc (Hole 08-003)
    -22.1m at 34 g/t silver and 6.3% zinc (Hole 08-003)
    -9.85m at 203 g/t silver and 6.4% zinc (Hole 08-003)
    -6.9m at 66 g/t silver and 7.1% zinc (Hole 08-008)
  • Importantly, it is believed that a number of the Boliden drill holes intersected the same structure as drilled by Tumi and hence will substantially add to the knowledge of the mineralized zone discovered by Tumi’s drill program;  
Says David Henstridge, President & CEO: “The acquisition of such a large data base of drill information will considerably advance the 100% owned Sala project.  

This new information is not only invaluable in terms of new knowledge, but is also a significant time and cost saving for Tumi to move the project forward.  In the first instance, the Company will compile all drill data to determine further work required for if an initial resource calculation”.
View Tumi's Press Release

Dear Friends:
As David Henstridge states this data from Boliden is invaluable.  On the back of the envelope calculation, the costs to drill 46 holes totalling 9,108M should benefit the Company well in excess of $2 million dollars.

The data from the Boliden drill program quickly advances Tumi’s knowledge of its Sala Silver/Zinc discovery.  It allows the Company to evaluate all available data and decide, in short order, on the work required to advance the project.

This information/property swap makes immanent sense and we look forward to Tumi’s next move on this highly prolific Sala* area.

* The Sala mine was Sweden’s largest historic silver producer, the mine operated for nearly 400 years and produced some of the richest silver ores in the world. More than 200 million ozs of silver are estimated to have been recovered with reported grades of up to 7,000 g/t Ag.

Note: The drilled area and data by Boliden and Tumi is approximately 400M southwest of the historic Sala mine.
As always - - - Stay Tuned!!

Regards,
Nick L. Nicolaas
Mining Interactive "Ahead of the Pack"

MiningInteractive Videos
Click Here
Stay tuned for the most recent updates on Tumi Resources and other leading junior exploration companies through the MiningInteractive Video Interviews.
Nick L. Nicolaas(604) 657-4058
nick@mininginteractive.com

NYT : Afternoon Business News: Strong Yen Fuels Rise in Japanese Takeovers. Sep. 14th., 2010


BUSINESS

Strong Yen Fuels Rise in Japanese Takeovers

 
By HIROKO TABUCHI
The purchasing power of the yen has prompted some Japanese companies to go on global shopping sprees.

As Greece Stagnates, Signs of Emigration Emerge

 
By NIKI KITSANTONIS
A growing number of young college graduates are leaving Greece as the recession strangles a job market already crippled by a culture of cronyism.

Pentagon Outlines Ways to Try and Control Costs

By CHRISTOPHER DREW
The changes are intended to rein in the ballooning cost of weapon systems and make military ships and planes more affordable.
Well Blog

High-Fructose Corn Syrup's New Name

 
By TARA PARKER-POPE
Corn refiners are asking the U.S. Food and Drug Administration to change the name of high-fructose corn syrup, using the term "corn sugar" instead.
Square Feet

The Auto Show Along 11th Avenue Is Expanding

 
By JOTHAM SEDERSTROM
The stretch of dealerships on Manhattan's far West Side is undergoing the biggest burst of activity in more than a decade.

RTTNews : Evening Market Wrap: Stocks See Mixed Close Even As Retail Sales Top Forecasts. Sep. 14th., 2010

Evening Market Wrap Tue Sep 14 17:01 2010  

Commentary

Sep 14, 2010 Stocks See Mixed Close Even As Retail Sales Top Forecasts - U.S. Commentary Stocks ended on a mixed note Tuesday, unable to sustain any solid direction as traders remained cautious despite some encouraging signs from the retail sector. The lack of significant movement also came as some considered the news already priced into the markets. Full Article

Economic News

Sep 14, 2010 Retail Sales Rise In August Amid Back-To-School Shopping Retail sales increased by slightly more than expected in the month of August, according to a report released by the Commerce Department on Tuesday, with higher sales of gas, food, and clothing helping to offset a drop in auto sales. The report showed that retail sales increased by 0.4 percent in August following a revised 0.3 percent increase in July. Economists had expected sales to edge up by 0.3 percent compared to the 0.4 percent growth originally reported for the previous month. Full Article
Sep 14, 2010 July Business Inventories Show Bigger Than Expected IncreaseWith inventories at merchant wholesalers and manufacturers showing notable increases in the month of July, the Commerce Department released a report Tuesday morning showing that business inventories increased by more than expected during the month. The Commerce Department said that business inventories rose by 1.0 percent in July following an upwardly revised 0.5 percent increase in June. Inventories had been expected to increase by 0.7 percent compared to the 0.3 percent growth originally reported for the previous month. Full Article

Earnings News

Sep 14, 2010 Best Buy Q2 Profit Surges, Beats Estimate; Raises FY11 EPS View - Update Consumer electronics retailer Best Buy Co. Inc. (BBY) Tuesday reported higher second-quarter profit, helped by revenue growth and margin improvement. Earnings per share rose year-over-year and surpassed Wall Street analysts' forecast. Buoyed by the strong performance to date, the retailer lifted its earnings outlook for fiscal 2011. Full Article

Forex Top Story

Sep 14, 2010 Dollar Extends 1995 Low Versus Yen, Plunges To Euro The dollar plunged versus the euro on Tuesday hitting the pivotal $1.30 mark for the first time in two months. It was a rough day all around for the dollar, which dropped to a fresh 15-year low against the yen after Japanese Prime Minister Naoto Kan won a power struggle within his political party. Full Article

Mergers

Sep 14, 2010 Green Mountain Coffee To Buy Van Houtte For US$890 Mln In Cash - Update Green Mountain Coffee Roasters, Inc. (GMCR) said Tuesday that it will acquire smaller Canadian rival LVJH Holdings Inc. or Van Houtte for C$915 million or US$890 million in cash from U.S.-based private equity firm Littlejohn & Co., LLC. The company expects the acquisition to drive the penetration of Keurig single-cup brewing system across Canada. Full Article

Political News

Sep 14, 2010 Small Business Bill Clears Procedural Hurdle In The SenateAfter weeks of delays, the Senate Tuesday took a step towards passage of a bill designed to increase lending to small businesses, with two Republicans breaking with their party to vote to move forward with the bill. The 61 to 37 vote to limit debate on the bill sets up a final vote on the bill later this week. Republican Sens. George Voinovich, R-Ohio, and George LeMieux, R-Fla., joined with Democrats to vote in favor of invoking cloture. Full Article
Sep 14, 2010 Poll Shows Blumenthal With Slim Lead In Connecticut Senate RaceConnecticut's Democratic Attorney General Richard Blumenthal holds a relatively small lead over Republican former wrestling executive Linda McMahon in the Connecticut Senate race, according to the results of a Quinnipiac University poll released on Tuesday. Full Article

FINANCIAL & FOREX INFO : Reuters Daily Investor Update: Wall Street flat as banks offset retail gains. Sep. 14th., 2010



FROM: REUTERS - DAILY INVESTOR UPDATE 

Wall Street flat as banks offset retail gains
AIG, U.S. repayment talks advancing: sources
Retail sales gain eases new recession fears
Cisco says "time right" for first dividend in 2011
IBM CEO blasts HP, defends "old-fashioned" image
Bill to aid small-business advances in Senate
Best Buy posts higher profit and raises outlook
RIM needs a big quarter to win back investors
Kroger says "loyal" customers helped it beat views
FDA staff question Arena diet drug, shares plunge


 

The Washingtong Post Afternoon Edition : Most read articles. Sep 14th., 2010



Most Viewed Articles on washingtonpost.com

1) Convicted killer pleads for her life as execution date in Virginia nears

TROY, VA. - In a cinder block prison visiting room, the only woman on the state's death row wept for the men she helped kill. She sang a favorite gospel song, bragged about her baby grandson and fussed over her hair. She described days spent in virtual isolation, reading a worn Bible and watching...

2) Gingrich, unhinged on Obama

That he thinks American democracy is under attack shows he needs to get out more.

3) Police: Neighbor slain after speed-hump flap

Stephen A. Carr worked aggressively, but patiently, to try to slow down the cars that flew past his house in the Burke area of Fairfax County. Most of his neighbors applauded his help, and earlier this year a speed hump was installed in front of his house.

4) Fla. pastor will 'not today, not ever' burn Quran

NEW YORK -- A Florida pastor says his church will "not today, not ever" burn a Quran, even if a mosque is built near ground zero.

5) Women outpace men for PhDs

For the first time, more women than men in the United States received doctoral degrees last year, the culmination of decades of change in the status of women at colleges nationwide.

6) As right as John Brown

Pastor Jones wanted to do something that was permissible and, in a sense, valued.

7) Physician to be honored for historic decision on thalidomide

The FDA scientist who kept the drug thalidomide off the U.S. market is being honored 50 years later at her former agency.

8) Warren's latest buzz: Maybe 'interim director' of consumer bureau

Harvard law professor Elizabeth Warren set the political blogosphere abuzz once again Monday, this time with speculation that the White House might appoint her as an "interim director" of the new Bureau of Consumer Financial Protection, in order to avoid a messy Senate confirmation battle.

9) Primaries end with establishment on the defensive

The tumultuous primary season will come to a close on Tuesday with the potential for still more shocks to the political establishment. The question is what the upheaval of the primaries says about the prospects for November.

10) Jobless are straining Social Security's disability benefits program

The number of former workers seeking Social Security disability benefits has spiked with the nation's economic problems, heightening concern that the jobless are expanding the program beyond its intended purpose of aiding the disabled.

FOX BUSINESS : Breaking Business News : Bulls Run Into Resistance

computer money 276
Big Tech's Giant Appetite The technology industry has done approximately $262.7 billion in mergers and acquisitions since the beginning of 2009--so what's fueling the fire?



THE MOST POWERFUL NAME IN BUSINESS NEWS

Bulls Run into Resistance

After posting its best start to a September in more than 70 years, the Dow traded flat.

Avoiding a Warren Fight?

The White House is reportedly weighing naming Elizabeth Warren as interim consumer board chief.

Retail Sales Increase 0.4%

Thanks to back-to-school-sales, retailers notched the largest gain in five months. | WATCH

AIG Looks to Speed Up TARP Repayment

The bailed-out insurer is reportedly in talks over an accelerated plan to repay U.S. taxpayers.

OPEC Comfortable With Oil Prices

The oil cartel is happy with an oil price of between $70 and $80 a barrel.

FINANCIAL AND FOREX INFO : Wall Street Starts At Down. Sep. 14th., 2010



FROM FOX BUSINESS

Wall Street treaded water at Tuesday’s start as the bulls hit resistance in trying to extend September’s surge even after the best rise in retail sales in five months and Best Buy’s big earnings beat.
Today’s Markets
As of 9:33 a.m. ET, the Dow Jones Industrial Average fell 8.41 points, or 0.08%, to 10535.42, the S&P 500 dropped 1.30 points, or 0.12%, to 1120.60 and the Nasdaq Composite
declined 1.97 points, or 0.09%, to 2283.74. The FOX 50 sank 0.69 points, or 0.09%, to 806.92.
Most of the early focus was on the upbeat news out of the retail industry despite the slowing economic recovery.

MarketWatch : Special Financial Services: Bond Report / Best Buy's profit and forecast top estimates. Sep. 14th., 2010


MarketWatch
SPECIAL  FINANCIAL SERVICES

Bond Report: Treasurys retain gains after retail sales

By Deborah Levine MarketWatch


Treasury prices briefly pare gains but stay up on Tuesday, pushing yields down for a second day. 



By Andria Cheng MarketWatch


Best Buy's second-quarter profit rose a better-than-expected 61%, helped by sales of mobile phones and reduced promotions. 



RTTNews : Daily Stocks To Watch : China Direct Industries unit bags contract from Beijing Tianrun Construction

Daily Stocks to Watch Tue Sep 14 09:02 2010 

Stocks To Watch

Sep 14, 2010 China Direct Industries unit bags contract from Beijing Tianrun Construction – Stocks To Watch China Direct Industries, Inc. (CDII) said its subsidiary received a contract from state-owned Beijing Tianrun Construction Co, Ltd. For delivering different types of reinforcing steel bars. The contract has the potential to generate more than $70 million in revenue over the next 12 months, the company noted. The contract is significant to the company, which posted revenue of $68.6 million for the nine-month fiscal transition year ended September 30, 2009. A U.S. Full Article
Sep 14, 2010 Introducing RTT Growth & Value StocksThe Growth & Value Stocks service is designed with a disciplined approach of extensive fundamental analysis to cater swing traders and investors. The service identifies growth stocks that are generally overlooked and value stocks that are usually undervalued by the market. The growth and value stocks we select have significantly outperformed the broader market indices. Full Article

RTTNews : Morning Market Briefing . Stocks On Pace For Mixed Open Even Amid Positive Retail Sales Surprise - U.S. Commentary. Sep. 14th., 2010

Morning Market BriefingTue Sep 14 09:01 2010 

Commentary

Sep 14, 2010 Stocks On Pace For Mixed Open Even Amid Positive Retail Sales Surprise - U.S. Commentary Stocks are poised to open Tuesday's trading on a lackluster note, even amid the day's better than expected retail sales data. The major index futures are all near the flat line, with the Dow futures down by 5 points. Full Article

Economic News

Sep 14, 2010 Retail Sales Rise More Than Expected In August Retail sales increased by slightly more than expected in the month of August, according to a report released by the Commerce Department on Tuesday, with higher sales of food and clothing helping to offset a drop in auto sales. Full Article
Sep 14, 2010 U.K. August Inflation Remains At 3.1% British consumer price inflation stagnated in August after easing for three straight months. The sluggish economic recovery as well as a large degree of spare capacity will possibly pull down underlying price pressure, bringing inflation back to the central bank's target over the medium-term. Full Article
Sep 14, 2010 Australian Business Confidence Rises SharplyBusiness confidence in Australia rose in August and at a marked pace as uncertainty in global markets dissipated somewhat, fresh data showed on Tuesday. Full Article
Sep 14, 2010 U.K. Consumer Confidence Bounces Back Consumer morale in the U.K. rose for the first time in four months, reports said on Tuesday citing the results of a new survey. The rebound was fueled by increasing optimism about the economic recovery and the jobs market. Full Article
Sep 14, 2010 U.K. August RICS House Price Index At 1-Year Low U.K. house price index dipped to the lowest level in more than a year in August owing to the increasing number of property coming to the market. Full Article
Sep 14, 2010 German Investor Confidence Plunges German investor confidence slumped more than expected in September, according to research firm ZEW institute. The steep retreat reflects fears that the blistering growth recorded in the second quarter will not last. Full Article

Earnings News

Sep 14, 2010 Best Buy Q2 profit up 61%, beats Street; lifts FY11 EPS viewTuesday, Best Buy Co. Inc. (BBY) reported a 61% jump in profit for the second quarter, despite a 3% dip in revenue, helped by better margins. Operating margin improved 110 basis points to 3.6%, while gross margin expanded 130 basis points to 25.7%. Earnings came in well above the Street view, but revenue fell short of estimates. Looking ahead, the company lifted its full-year earnings outlook to a level much higher than the current estimate of analysts. Full Article
Sep 14, 2010 Kroger Q2 profit rises 3%, beats Street; backs FY10 viewTuesday, The Kroger Co. (KR) posted a 3% rise in profit for the second quarter, reflecting lower interest expense as well as a 6% growth in sales. Both earnings and revenue came in above the Street view. Excluding fuel sales, total sales improved 3.3% from the year-ago quarter. Looking ahead, the company reiterated its guidance for the full year. Full Article

Corporate News

Sep 14, 2010 Green Mountain Coffee Roasters to buy Van Houtte for US$890 mlnTuesday, Green Mountain Coffee Roasters Inc. (GMCR) said it agreed to acquire the entire outstanding shares of LJVH Holdings, Inc. or Van Houtte, from an affiliate of Littlejohn & Co., LLC, for CAD$915 million or US$890 million in cash. The company expects the transaction to close by the end of calendar year 2010. The firm anticipates the purchase to be neutral to slightly dilutive to its earnings in the first twelve months following the closuure of the deal, and accretive thereafter. Full Article
Sep 14, 2010 ACE to buy Rain and Hail Insurance Service for $1.1 bln cashTuesday, ACE Limited (ACE) said it agreed to acquire all of the outstanding common stock of Rain and Hail Insurance Service, Inc. not currently owned by ACE for about $1.1 billion in cash. ACE, which at present owns about 20% stake in the target company, said post acquisition, Rain and Hail will continue to operate as a separate and distinct franchise within the company’s ACE Westchester unit and Insurance-North America operations. ACE expects the deal to close by the end of 2010. Full Article
Sep 14, 2010 Verizon CFO John Killian to retire around year-endMonday, Verizon Communications Inc. (VZ) said its executive vice president and chief financial officer, John Killian, plans to step down by year end, after serving for 31 years. The company said it will shortly name a replacement for Killian, who had assumed the office of CFO in March 2009. Full Article
Sep 14, 2010 MedAssets to buy Broadlane Group for $850 mlnTuesday, MedAssets, Inc. (MDAS) said it is buying The Broadlane Group for about $850 million in cash. As per the deal, MedAssets will pay $725 million at closing and $125 million more in January, 2012. The company expects the deal to be accretive to its adjusted earnings per share in 2011 and that it result in cost savings of at least $20 million. Full Article

Broker Ratings Changes

Sep 14, 2010 FBR Capital Markets Cuts Grainger (W.W.) Inc. (GWW) To Market Perform From Outperform With $118 Down From $130 Price Target

Todays WS Events

Sep 14, 2010 Ford Motor To Present At Bank Of America-Merrill Lynch 2010 Investment Conference; Webcast At 11:00 Ford Motor Co. (F) will make a presentation at the Bank of America-Merrill Lynch 2010 Investment Conference in San Francisco. The event is scheduled to begin at 11:00 AM ET, September 14, 2010. To access the audio webcast, log on at www.shareholder.ford.com
Sep 14, 2010 Lowe's To Present At Goldman Sachs Annual Global Retailing Conference; Webcast At 11:10 AM ET Lowe's Companies Inc. (LOW) will present at Goldman Sachs Annual Global Retailing Conference in New York. The event is scheduled to begin at 11:10 AM ET, September 14, 2010. To access the live webcast, log on to www.Lowes.com/investor
Sep 14, 2010 National Semiconductor To Present At The Deutsche Bank 2010 Technology Conference; Webcast At 12:15 National Semiconductor Corp. (NSM) will present at the Deutsche Bank 2010 Technology Conference, on September 14, 2010. The event is scheduled to begin at 12:15 PM ET. To access the live webcast, log on at www.national.com/analog/invest/conf
Sep 14, 2010 Boston Scientific To Present At Morgan Stanley Global Healthcare Conference; Webcast At 9:10 AM ET Boston Scientific Corp. (BSX) will present at the Morgan Stanley Global Healthcare Conference in New York City. The event is scheduled to begin at 9:10 AM ET, September 14, 2010. To access the live webcast, log on to www.bostonscientific.com
Sep 14, 2010 Cisco Financial Analyst Conference At 11:00 AM ET Cisco Systems, Inc. (CSCO) will host its Financial Analyst Conference 2010, on September 14, 2010. The event is scheduled to begin at 11:00 AM ET. TO access the live webcast, log on at http://investor.cisco.com