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Jun 4, 2012

From The Australian: Rate cut urged to steady market

Rate cut urged to steady market

ALL eyes will be on the Reserve Bank today after a blood bath on global financial markets.
Investors watched white-knuckled as $25 billion was carved from the value of Australian shares yesterday. The S&P/ASX 200 dropped to a six month slump, sinking below the 4000-point mark for the first time this year and local markets will be looking for support from the Reserve when it meets in Sydney today after a shaky month.
The fallout from a Four Corners investigation will also continue today, with the ABC program last night revealing that senior people smugglers and their families were among the thousands of asylum-seekers who had arrived by boat in order to continue their lucrative trade from inside Australia. A senior source has told The Australian the federal government has long been concerned about domestic-based smuggling rackets. (4Corners) (Oz)
Leaders: Julia Gillard is in Sydney today. Tony Abbott will start the day in Canberra before travelling to Sydney.
Diary: The ACT budget will be handed down today at 3pm. Former Greens leader Bob Brown will make a farewell address at the National Press Club. The Reserve Bank will make its decision on the cash rate at 2.30pm.
An Australian Strategic Policy Institute dinner will be held tonight at the National Gallery of Australia with Chief of Air Force, Air Marshal Geoff Brown AO. 

Stocks and markets in the News | After Hours | MarketWatchStarbucks, Dollar General shares fall after hours

By Carla Mozee, MarketWatch 

LOS ANGELES (MarketWatch) — Shares of Starbucks Corp. fell Monday after the coffee retailer said it will purchase a San Francisco-based bakery chain, and Dollar General Corp. stock turned lower after the retailer outlined a plan for a secondary offering by some shareholders. 

Late-traded Starbucks shares SBUX +3.36%  fell 2.6% at $52.50, cutting into their 3.4% gain during the regular session, as the company said it will acquire privately held La Boulange bakery chain for $100 million in cash. Starbucks plans to serve La Boulange’s pastries, breads and sandwiches under the La Boulange name in its U.S. stores. 

Mobile ads target iPhone users Mobile-ad networks are using new techniques to target iPhone users by circumventing Apple's earlier efforts to protect user privacy. Joel Schectman reports. (Photo: Bloomberg) 

“This is an investment in our core business,” Starbucks’s Chief Executive Howard Schultz said in a statement. Starbucks has been seeking to improve its food menu in an effort to ramp up customer traffic in the afternoons. 

Dollar General DG -2.50%  shares were down 3.2% at $47.31, losing their grip of gains as the retailer announced an underwritten secondary public offering of 25 million common shares, which are being sold by certain shareholders. The Tennessee-based company said in a statement it will not sell any shares in the offering, nor will it receive any proceeds. 

Some of the selling shareholders have granted to underwriters an option to purchase up to 3.75 million additional shares, according to Dollar General.

Dollar General shares had been up just after the company, in a separate release, said fiscal first-quarter revenue rose 11% to $3.9 billion from $3.45 billion a year ago. Analysts polled by FactSet Research had expected sales of $3.83 billion. Profit was $213.4 million, or 63 cents, a share, up from $157 million or 45 cents a share, a year ago. The company also raised its 2012 per-share earnings view to a range of $2.68 to $2.78. 

Ahead of the report, shares of Dollar General had been up 52% over the past 12 months.
In dayside trading, the Dow Jones Industrial Average DJIA -0.14%  ended lower for a fourth consecutive session, hurt by the latest U.S. economic data and reports illustrating China’s slowdown. The Dow fell 17 points, or 0.1%, at 12,101.46. But the S&P 500 Index SPX +0.01%  managed to push out a gain of less than 1 point at 1,278.18, and the Nasdaq Composite Index COMP +0.46%  rose 0.5% to 2,760.01.

Carla Mozee is a reporter for MarketWatch, based in Los Angeles.

GATA | THE GATA DISPATCH: Gold flow to China via Hong Kong up 62% in April

Gold flow to China via Hong Kong up 62% in April

By Rujun Shen

Monday, June 4, 2012

SINGAPORE -- Hong Kong shipped 101,768 kilograms of gold to mainland China in April, up 62 percent on the month and marking the second-highest monthly exports, the Hong Kong Census and Statistics Department said on Monday.

The flow of gold from the mainland to Hong Kong jumped 38 percent to 34,368 kilograms, it said.

BYT Global Update: Germany Resists Proposals to Aid Spain's Banks

Global Update


Germany Resists Proposals to Aid Spain's Banks

Germany has opposed the idea, cautiously endorsed by French and European officials, of pumping money directly from a bailout fund into troubled banks.

More Egypt Protests Loom, Targeting Mubarak's Prime Minister

Hoping to push Egypt's military rulers to disqualify Ahmed Shafik from the presidential runoff vote, his electoral rivals are planning further demonstrations.

Bombing in Baghdad Linked to Dispute Over Samarra Shrine

A sectarian controversy over control of a holy religious shrine where a 2006 bombing set off waves of sectarian killings turned violent again on Monday.

Video: TimesCast

Egypt's elections face new fraud accusations, and more.

Op-Ed Contributor

Hang on, Leviathan, Hang On

The United States cannot continue forever to play Leviathan. But it cannot drop the role quite yet.

Engine Trouble Reported in Nigerian Crash

A Nigerian airliner that crashed in Lagos, killing all 153 on board, reported engine trouble just before it went down.

Bomber Strikes Nigerian Church, as Attacks on Christians Mount

A suicide bomber set off a car full of explosives at a church in northern Nigeria on Sunday, killing at least 12 people in the latest attack on Christian worshipers, witnesses said.

New Airstrike Aimed at Qaeda Deputy in Pakistan

Abu Yahya al-Libi, the Al Qaeda commander who escaped American custody in 2005, was either killed or seriously wounded after a drone strike in Pakistan's tribal belt, according to tribal sources.

Nervous Europeans Snap Up London Property

From Italy, Greece, Spain and other countries in the euro zone, the affluent are moving money into hard assets valued in something other than euros.

Trustee Report Details Possible Claims Against Corzine and Others

A document released on Monday by the trustee overseeing the return of more than $1 billion in missing customer money takes Jon S. Corzine and others at the firm to task for the firm's downfall.

E.C.B. Under Pressure to Ride to the Euro's Rescue

Based on economic and market indicators, and a growing sense of public panic, top European Central Bank officials could easily justify a policy move at their regular monthly meeting Wednesday.

Expert Issues a Cyberwar Warning

Eugene Kaspersky says his discovery of the Flame virus adds weight to his warnings of the grave dangers posed by governments that manufacture and release viruses on the Internet.

When Defending Earth Cost 25 Cents

Competitors at the 14th Annual International Classic Video Game Tournament at the American Classic Arcade Museum revisited the first generation of computer games.
Bits Blog

Rethinking Privacy in an Era of Big Data

Privacy is always a moving target. In a networked world, it moves in lots of directions. A well-known Internet researcher warns, "Regulation is coming."

The Defenders Strike Back, Creatively

In an era of grueling baseline duels, tennis players are adapting, setting up antidotes to would-be poisons, buying back time with fresh ideas, even new shots.

Do the Dutch Need a Rough-And-Tumble Approach?

The Netherlands has been able to call on a bevy of gifted soccer players for a long time, yet it has been emphasizing a tough, physical approach for years now.

Cooler Weather Brings Trouble for Top Players at French Open

Victoria Azarenka, the top-ranked women's player, fell Sunday to Dominika Cibulkova, who had twice been on the verge of knocking out Azarenka's defenses in the past two years.

Vatican Denounces Nun Over Book on Sexuality

The book attempted to present a theological rationale for same-sex relationships, masturbation and remarriage after divorce.

Secret Service Agents Can't Be Sued, Justices Rule

The Supreme Court ruled unanimously that the Secret Service did not violate the free speech rights of a man who was arrested after confronting Vice President Dick Cheney in 2006.

A $1 Cigarette Tax Starts a $47 Million Brawl in California

Health groups are pushing a ballot initiative to impose a $1-a-pack tax, provoking a storm of advertisements to defeat the biggest threat the industry has faced in the state in a decade.

While the Ruble Slumps

Russians' eerie calm in the face of the currency's precipitous drop in value is a sign they feel too powerless to even care about discussing their future.
Op-Ed Columnist

This Republican Economy

Spending cuts and low taxes? They're already here.

CBS NEWS | Political Hotsheet Top Stories: Obama courts women, pushes paycheck fairness bill


Senate set to vote this week on measure that would make it harder for employers to discriminate against workers who compare notes on pay
Read full story
Obama courts women, pushes paycheck fairness bill

Obama ad hits Romney's record as governor New Obama campaign ad blasts Romney's economic record in Massachusetts as "one of the worst" in the country

Bill Clinton: My words got Former president says his praise for Romney's business record was not an endorsement and that the GOP candidate is "wrong on the economy" and more

Aide explains why Romney breaks with GOP on China Romney policy director Lanhee Chen says candidate interested in more than "just traditional Republican policies"

Obama prods Congress to do more on jobs Following latest jobs report, president says economy "still faces some serious headwinds," calls on Congress to act on his "to-do list"

Stocks and Markets in the News | Wall Street at Close: Dow industrials extend loss to fourth day.

SAN FRANCISCO (MarketWatch) — U.S. blue-chips extended a loss into a fourth session Monday, buckling under the latest U.S. economic data and reports illustrating China’s slowdown. The Dow Jones Industrial Average fell 17.11 points, or 0.1%, to 12,101.46, led by a 2.9% drop in J.P. Morgan Chase & Co. shares. The S&P 500 eked out a minor gain, added 0.14 point to 1,278.18. The Nasdaq Composite rose 12.53 points, or 0.5%, to 2,760.01. A surprise drop in April factory orders cemented forecasters’ assessment of the U.S. economy as stuck in a soft patch, in part due to the euro zone’s crisis and as Chinese growth slows. Recent bleaker economic reports have contributed to hopes of more central bank stimulus.

NYT Afternoon Business News: Figures on Government Spending and Debt

Latest Business News
Figures on Government Spending and Debt
Starbucks Buys Bakery to Improve Food Offerings
Marion O. Sandler, Former Golden West Co-Chief, Is Dead at 81


Nervous Europeans Snap Up London Property

From Italy, Greece, Spain and other countries in the euro zone, the affluent are moving money into hard assets valued in something other than euros.

Market's Echo of Tiananmen Date Sets Off Censors

China limited searches on Monday after an unlikely stock exchange result on the anniversary of the crackdown.

Chesapeake Agrees to New Board

Chesapeake Energy, under pressure over its corporate governance, said it would replace four of its current board members with new outside directors.

Wal-Mart Vote Shows Rise in Shareholder Unhappiness

Shareholders voting at last week's annual meeting registered a spike in dissatisfaction with Wal-Mart compared to last year, according to the company's vote tally.

Merrill Losses Were Withheld Before Bank of America Deal

Days before shareholders voted on Bank of America's 2008 purchase of Merrill Lynch, top executives were told the investment firm's losses would most likely hammer future earnings.

DealBooK | DealB%K Afternoon Edition: Trustee Report Details Possible Claims Against Corzine and Others:

Monday, June 4, 2012
Trustee Report Details Possible Claims Against Corzine and Others
Trustee Report Details Possible Claims Against Corzine and Others A document released on Monday by the trustee overseeing the return of more than $1 billion in missing customer money takes Jon S. Corzine and others at the firm to task for the firm's downfall.
White Collar Watch: In Gupta Case, Motive Matters Peter J. Henning says that the government does not have to prove motive for most crimes. But for insider trading cases, the government is required to show that a tipper had something to gain.
WellPoint Acquires 1-800 Contacts WellPoint has agreed to buy 1-800 Contacts, the contact lens retailer, from the private equity firm Fenway Partners, in a bid to bolster its relationships with consumers.
New Online Broker Aims to Lure Investors Back to the Market Motif Investing, a new online brokerage that bills itself as an online evolution of investment clubs, is getting backing from some big names on Wall Street, like Sallie Krawcheck and Arthur Levitt Jr. to Buy Buddy Media for $689 Million, looking to enhance its social media offerings, has agreed to buy Buddy Media.
Global Banks Cut Lending in Response to Economic Slowdown As the sovereign debt crisis drags on, international lending by global banks in the fourth quarter last year fell by the largest amount since the Lehman Brothers crisis in 2008.
Another View: Hedge Funds of the Living Dead Jay Eisenhofer and Matthew P. Morris of the law firm Grant & Eisenhofer say that recent offshore case law has recognized an investor's right to seek a "just and equitable" windup of a hedge fund when it has gone into lockup mode.
Chip Maker iWatt Files to Go Public In the wake of Facebook's disappointing debut, the pipeline for initial public offerings has all but dried up. But the flow increased by one on Monday with an offering prospectus from iWatt, which makes power management chips for Apple and Philips, among other electronics manufacturers.
Economic Reports Data released on Tuesday will include the Institute for Supply Management service index for May.
DealBook Video
Business Day Live: Merrill Losses and Merger
Business Day Live: Merrill Losses and Merger Bank of America withheld loss estimates before Merrill merger. And will leaders muster the will to save the euro?

The Economist | New Selected Articles: A big hairball of risk

Free exchange: A big hairball of risk
The many things that prey on our minds
read more »

Newsbook: Back to the square
Two weeks before the presidential runoff, Egypt's reaction to the trial of a fallen dictator is furious
read more »
Schumpeter: Booted out
The long-standing chief executive of Italy's biggest insurance company has been unceremoniously dumped
read more »

Game theory: Different ways to get to the top
Climbing is not all about scaling peaks because they are there
read more »
Daily chart: Bedbetting
Gambling from home is growing more popular
read more »
Online debate: Mexican elections
Is it time for a progressive government?
read more »

Money Show Traders daily Alert: Indicator in Focus: Acceleration Bands

Traders Daily Alert

Tips for Traders
Indicator in Focus: Acceleration Bands, Price Headley

Options Idea
Earn Exciting Profits in Boring Stocks, Karee Venema

Charts in Play
Overbought Dow Stocks to Buy on Dips, Tom Aspray

Currency Corner
The Forex Trading Week Ahead, Kathleen Brooks

Trading Idea of the Day
6 Concerns for Anyone Buying Facebook, John Jagerson

Daily Market Studies
Trading Outlook for Today: June 4, Daniel Gramza

Today’s Featured Videos & Exclusive Interviews
VIX Measures Traders Haven’t Heard of, Marty Kearney
Trading Contracting Patterns, Sandy Jadeja
Strategic Adjustments That Pay Off Big, Jeff White

GATA | THE GATA DISPATCH: Gold taking center stage, Leeb tells King World News

Gold taking center stage, Leeb tells King World News

11:20a ET Monday, June 4, 2012

Fund manager Stephen Leeb today tells King World News that saving the euro and the European Union will require much money creation, that the U.S. Federal Reserve will have to follow, that the designation of gold as a "Tier 1" asset for banks strongly implies a big revaluation of gold, and that China's big gold imports likely signify that China recognizes all this. "Gold is taking center stage," Leeb says. An excerpt from the interview is posted at the King World News blog here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

GATA | THE GATA DISPATCH: Bix Weir: 'Painting the tape' acknowledged on CNBC

Bix Weir: 'Painting the tape' acknowledged on CNBC

11:08a ET Monday, June 4, 2012

Road to Roota's Bix Weir today catches market manipulation being acknowledged on CNBC, if only in regard to the investment house Morgan Stanley and the comic initial public offering of shares in Facebook. Weir notes that there will be no investigation into this by the U.S. Securities and Exchange Commission, as, indeed, law enforcement in the financial markets has effectively ceased in the United States. This is the argument for investment in the monetary metals, provided those metals are taken out of the financial system, that system now being entirely corrupt. Weir's commentary and the video from CNBC are posted at
Road to Roota here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

BIV Business Today News: No free rides for mobile carriers on Canada Line, City tells Wind


Canada Line over the Fraser River

No free rides for mobile carriers on Canada Line, City tells Wind

There are no free rides for mobile carriers on the Canada Line, so if Wind Mobile wants access to it, it should negotiate with Telus (TSX:T), which owns the system's wireless infrastructure, say the City of Vancouver and InTransitBC.

Telus to invest $840m in Quebec over three years

Vancouver-based Telus Corp. (TSX:T) will invest $840 million in Quebec over the next three years to expand and enhance its wireless and wireline networks, the company announced this morning.

Human Resources


Well-trained staff key to business success, but hard to find: AmEx

Although 92% of small business owners believe well-trained employees are key to the company’s success, 61% say the average worker doesn’t have the skills or knowledge their company needs, according to the American Express quarterly Small Business Monitor released today.

Retail and Manufacturing


Cross-border shopping set to rise as duty-free limits are raised

Canadian retailers that are already losing business to the U.S. may start seeing even more commerce draining south of the 49th parallel, now that Canadians are allowed to spend more without paying duty during overnight trips to the U.S.



Finavera responds to suit over alleged unpaid invoices

Vancouver-based wind energy development company Finavera Wind Energy Inc. (TSX-V:FVR) has issued a response to a suit filed against the company for alleged debt.

Mining and Energy

Vancouver junior oil company buys New Zealand wells

New Zealand Energy Corp. (TSX-V:NZ), a junior Vancouver oil exploration company, is making the jump to oil producer, following the acquisition of oil assets in New Zealand.