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Jan 14, 2012

Stocks and Markets in the news | Eurozone Analysis: Euro-zone policies have fallen short: S&P - Market Watch

By David B. Wilkerson, MarketWatch 

CHICAGO (MarketWatch) — Standard & Poor’s credit analysts said Saturday that Euro-zone policy makers have failed to address the “broadening and deepening” financial crisis the region now faces, leading the agency to issue long-term downgrades on nine countries, including Cyprus, Italy, Portugal, Spain, Austria, France, Malta, Slovakia and Slovenia. 

Perhaps most notably among the cuts late Friday, S&P downgraded France and Austria to AA+ from AAA, leaving only Germany, Netherlands, Finland and Luxembourg left as AAA-rated countries in the currency group. Portugal and Cyprus were downgraded to junk-bond status.
During a conference call Saturday morning, S&P credit analyst Moritz Kraemer said policymakers have yet to come up with solutions to the “systemic stresses” that plague Euro-zone nations during its debt crisis. 

Among these problems, he said, are tightening credit conditions; weakening prospects for economic growth in the region; and continued disagreement among government officials over how the situation should be addressed. 

In a Saturday research note, UBS advised clients to short the Euro, as Friday’s downgrades “are not fully priced yet despite the euro falling to new sixteen month lows around 1.2625.” 

In an EU summit on Dec. 9, the 17 Euro-zone nations pledged to maintain closer financial ties through an inter-governmental accord. Among other stipulations, the pact includes a rule that annual structural deficits should not exceed 0.5% of nominal gross domestic product. This rule will be introduced in nations’ constitutions and the European Court of Justice will verify compliance. There will also be automatic sanctions for countries whose deficit exceeds 3% of GDP unless a qualified majority of euro-area members is opposed. Great Britain opposed the treaty, and will not participate. 

Kraemer said on Saturday’s call that the agreement places too much emphasis on deficits, and the implementation of such rules would not have averted the financial crisis had they been in effect earlier. “Spain had balanced budgets for most of the first 10 years of the Euro’s existence,” he pointed out, “while Germany had one of the biggest deficits.” Today, however, Germany’s financial stability is much greater than Spain’s.
However, the analyst also acknowledged that the Euro-zone’s credit worthiness is still relatively high. S&P only rates three of the region’s sovereigns below investment-grade level — Greece, Portugal and Cyprus. 

Kraemer said that Greek bondholders could recover perhaps 30 to 50 cents per euro, but whatever the amount, Greece will go into default, as measured by the standards of S&P. The big risk, the analyst added, is that of a “disorderly” default by Greece, one that could rock markets around the world and create tougher credit conditions for other countries trying to roll over existing debt.
Kraemer noted that global markets have taken a far more “gloomy” view of the Euro-zone’s prospects than has S&P. 

David B. Wilkerson is a reporter for MarketWatch in Chicago.

MarketWatch | Weekly Roundup: The Week's top ten Videos

MarketWatch

Weekly Roundup
JANUARY 14, 2012

The week's top 10 videos on MarketWatch

By MarketWatch



In case you missed them, here are the 10 most popular videos that appeared on MarketWatch for the week of Jan. 9-13:

Sony unveils LED TV at CES

Daisuke Wakabayashi reports from the Consumer electronics Show in Las Vegas that Sony is betting on a new crystal LED television to help jump-start its struggling TV business.
 Watch Video Report.


Newt 2012's anti-Romney ad

Watch a campaign ad from Newt 2012 on Mitt Romney's economic plan.
 Watch Video Report.


Best Buy CEO fires back

Best Buy Co.'s chief executive, Brian Dunn, shot back Friday at critics who have been calling the retailer a relic, as the electronics giant reported lower December sales compared with the year before. Matt Jarzemsky report.
 Watch Video Report.


A new era in computing

"Ultrabook" seems to be the buzzword at this years Consumer Electronics Show but can they keep up with the consumers demand for features like more touch-screen control and greater processing power? Don Clark reports from the 2012 Consumer Electronics Show in Las Vegas.
 Watch Video Report.


Don't bank on early-January effect

A common belief about stock-market patterns is that the first five days of January will point the way for the rest of the year. If only it were that simple, says MarketWatch columnist Mark Hulbert. Laura Mandaro reports.
 Watch Video Report.


Surprise shakeup at Goldman Sachs

Liz Rappaport checks in on Mean Street to discuss this week's unexpected shakeup at Goldman Sachs in which half of the executives in charge of the company's securities division plan to leave the company.
 Watch Video Report.


Buffett slams private equity

David Weidner discusses Warren Buffet's recent comments bashing the private-equity business.
Watch Video Report.


Apple CEO was paid $378 million

Apple CEO Tim Cook was paid $378 million last year, a sharp contrast to late CEO Steve Jobs, who took a $1 salary. Rolfe Winkler joins Markets Hub to discuss.
 Watch Video Report.


Morgan Stanley's dim view of the 2012 economy

Jonathan Cheng has details of the latest 2012 outlook from Morgan Stanley - an outlook that paints a dismal picture for the U.S. economy.
 Watch Video Report.


Iran scientist assassinated in car-bomb blast

An Iranian scientist working for a key nuclear site was killed in Tehran with a magnetic bomb attached to his car, in what the government said was a plot by the U.S. and Israel. Farnaz Fassihi has details on The News Hub.
 Watch Video Report.


NYT Morning Business News; Federal Contractor Monitored Social Network | Technology Sites

Today's Headlines


TOP NEWS

Downgrade of Debt Ratings Underscores Europe's Woes

By LIZ ALDERMAN and RACHEL DONADIO
Combined with a snag in talks between Greece and its creditors, the ratings agency Standard & Poor's action served as a reminder that Europe has found no solution to its debt turmoil.

Obama Bid to Cut the Government Tests Congress

By MARK LANDLER and ANNIE LOWREY
The president announced a new campaign to shrink the federal government, a proposal notable less for its goal than for its challenge to a hostile Congress.

U.S. Restores Full Ties to Myanmar After Rapid Reforms

By STEVEN LEE MYERS and SETH MYDANS
The action is a diplomatic reward for recent political reforms by Myanmar's civilian government, including the release of top activists on Friday.
QUOTATION OF THE DAY
"This is a momentous day for the diverse people of Burma. And we will continue to support them and their efforts and to encourage their government to take bold steps."
SECRETARY OF STATE HILLARY RODHAM CLINTON, on the move to normalize diplomatic relations between the United States and Myanmar following sweeping political reforms.


U.S.

Video: Being Garifuna

When it comes to being counted in the census, the Garifunas, who are part African, part Caribbean and part Central American, say they don't fit into any box.
Opinion

Op-Ed Contributor

How Dry We Aren't

Theodore Roosevelt, when he was police commissioner, tried to crack down on New Yorkers' alcohol consumption. It didn't go well.
WORLD
The Saturday Profile

A Champion of France's Downtrodden, With Limits of His Own

By MAÏA DE LA BAUME
As a deputy prefect who is mostly paralyzed as a result of a rare genetic degenerative disease, Jean-Christophe Parisot fights for immigrants, the elderly and the poor.

As Crisis Festers, Pakistani Government Plans Confidence Vote

By DECLAN WALSH
Lawmakers in Pakistan framed a resolution designed to bolster civilian rule at a time of sharpening tension with the military that has also drawn in the judiciary.

Israel Says Sanctions Hurt Iran

By ETHAN BRONNER
Prime Minister Benjamin Netanyahu said in an interview published on Saturday that new economic sanctions against Iran could succeed if combined with a threat of military action.
U.S.
Race Remixed

For Many Latinos, Racial Identity Is More Culture Than Color

By MIREYA NAVARRO
With 15 choices of race on the census form, more than 18 million Latinos have been checking "other," reflecting the group's diverse self-image.

Town, Cast as Romney's Victim, Says, 'Huh?'

By KIM SEVERSON
The closing of a factory in Gaffney, S.C., by Bain Capital, Mitt Romney's firm, is cited in his rivals' attacks, but few in town remember the closing, or care.

In Reversal, Gingrich Calls for Withdrawal of Film Attacking Romney and Bain

By JIM RUTENBERG, TRIP GABRIEL and MICHAEL BARBARO
The group running the video, a pro-Gingrich "super PAC," made no move to alter the work and gave no indication of retreat from using its excerpts in television commercials.
POLITICS
On Politics

Obama and Romney Face a Tough Fight for Key Group

By RICHARD W. STEVENSON
In an election climate largely defined by the anxieties of the middle class, working people are now more likely than not to face a choice in November between two candidates who sometimes seem to have trouble relating to them.

Heart Surgery Is Planned for Edwards; Trial Delayed

By JOHN PERAGINE and ROBBIE BROWN
A federal judge postponed the court date until at least March, at the request of a cardiologist.
Critic's Notebook

Beneath a Deeply Silly Campaign, a Deeply Serious Performer

By JASON ZINOMAN
In his bid to join the Republican presidential contest, Stephen Colbert is a serious performer playing a silly character, while the media and political world are deeply silly but pretending to be serious.
BUSINESS
DealBook

Lending Helps JPMorgan, but 4th Quarter Was Soft

By BEN PROTESS and PETER EAVIS
JPMorgan Chase reported a 23 percent drop in its quarterly earnings, but one significant bright spot for the bank was its growth in corporate loans.

Apple Lists Its Suppliers for 1st Time

By NICK WINGFIELD and CHARLES DUHIGG
The move accompanied a report detailing troubling practices inside many of the facilities.

Ex-Official at S.E.C. Settles Case for $50,000

By EDWARD WYATT
Spencer C. Barasch, who was said to have hindered federal investigations of fraud at the Stanford Financial Group and later represented the firm, reached a $50,000 civil settlement.
TECHNOLOGY

All iPhone Sales Suspended at Apple Stores in China

By SHARON LaFRANIERE
The move came after Apple's Beijing store failed to open as promised and a frustrated crowd reacted by pelting it with eggs.

Federal Contractor Monitored Social Network Sites

By CHARLIE SAVAGE
The Department of Homeland Security paid a contractor in 2009 to monitor social networking sites for public reaction to a proposal to move detainees from Guantánamo to a local prison, according to documents.
SPORTS

Tenderizing the Tundra With Some Light and Heat

By JOHN BRANCH
The "frozen tundra" of Lambeau Field, where the Giants face the Packers on Sunday, is anything but that, given a system to warm the field and the use of artificial lights to keep the grass healthy.
This Land

He's a Quarterback, He's a Winner, He's a TV Draw, He's a Verb

By DAN BARRY
What, exactly, is it about Broncos quarterback Tim Tebow that so fascinates and provokes us? Why do some people project onto him the best of this country - and the worst?

In Extreme Cold, Accurate Passes Are the Least of the Body's Worries

By SAM BORDEN
From a physiological standpoint, experts said, playing football in extreme cold generally affects a player's ability to feel and his ability to breathe.
ARTS

Rocky Hollywood Road Leads Directors Back to Sundance

By BROOKS BARNES
Spike Lee and Stephen Frears, unsold films in hand, will jostle with less-known directors for attention.
Critic's Notebook

Shorter, Modern and Less Than Opera

By ANTHONY TOMMASINI
"The Gershwins' Porgy and Bess" was streamlined to make the original opera more accessible and realistic, but we're left with something slighter.
NEW YORK / REGION

Menendez Drops His Opposition to Obama's Pick for a Federal Appeals Court

By KATE ZERNIKE
Senator Robert Menendez ended an awkward stalemate with fellow Democrats, saying he would no longer block Magistrate Judge Patty Shwartz's nomination to an appeals court.
News Analysis

Bloomberg Focuses His Legacy on Education Reform

By FERNANDA SANTOS
During his State of the City address, the mayor returned to a recurring theme: the city's much-maligned schools and his goals to improve them.

Council Leader Offers Compromise on Wage

By KATE TAYLOR
Christine C. Quinn, the City Council speaker, said she would introduce legislation mandating a so-called living wage for a more limited group of workers than originally proposed.
TRAVEL

Lost in Jerusalem

By MATT GROSS
In streets filled with the faithful and in bars filled with the almost familiar, a nonbeliever finds his place in one of the world's holiest places.

36 Hours: Oaxaca, Mexico

By FREDA MOON
With the city's street art scene, a mescal-fueled night life and one of Mexico's most exciting regional cuisines, Oaxaca is as cosmopolitan as it is architecturally stunning.
Practical Traveler

Skiers, Take Heart! There Is Snow if You Know Where to Look

By MICHELLE HIGGINS
Warm temperatures and weird jet streams mean that skiers need to do some weather research before heading to the slopes.
EDITORIALS
Editorial

A Long Bleak Winter

After a few weeks of calm, austerity measures freeze the weakened European economies. It is time to shift course.
Editorial

Self-Inflicted Wound

A video of Marines urinating on Taliban corpses that has gone viral on the Internet harms American interests in Afghanistan and couldn't have come at a worse time.
Editorial

The Mayor's To-Do List

In his annual State of the City address, Mayor Bloomberg announced ambitions plans to tackle. It will require a lot of energy, tact and political muscle.
OP-ED
Op-Ed Columnist

Bitter Politics of Envy?

By CHARLES M. BLOW
The presidential candidates need to get a grip on our nation's income inequality.
Op-Ed Columnist

Who Wants to Be a Millionaire?

By GAIL COLLINS
The current presidential race has demonstrated that $1 million is practically nothing these days. Nothing!
Op-Ed Columnist

More N.C.A.A. 'Justice'

By JOE NOCERA
When a basketball player from St. Joseph's University tried to transfer to another school, he ran into the biggest bullies on campus.
ON THIS DAY
On Jan. 14, 1943, President Roosevelt and British Prime Minister Winston Churchill opened a wartime conference in Casablanca.

NYT: ALERT FGC BOLSA - FGC FINANCIAL MARKETS: Japan Delays Decision on Iran Oil Sanctions





Alert Name: FGC BOLSA - FGC FINA
January 14, 2012

WORLD / ASIA PACIFIC

Prime Minister Yoshihiko Noda said on Friday his nation had yet to decide whether it will reduce oil imports from Iran, continuing the mixed signals from his government.

BUSINESS DAY

Stocks declined after reports of a downgrade of European credit ratings. Investors were also discouraged by U.S. trade deficit data and JPMorgan Chase’s earnings.