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Jan 21, 2013

NYT | Afternoon Update (January 21, 2013).: Obama Sets Goal to Broaden Equality

The New York Times
January 21, 2013

Afternoon Update


Obama Sets Goal to Broaden Equality

President Obama renewed his oath of office Monday and used his inaugural address to define his version of modern liberalism, with an emphasis on expanding opportunity.

Climate Change Given Prominence in Obama's Address

Democrats said the president would launch an aggressive campaign to address the issue, using his executive powers to sidestep Congressional opposition.

Algeria Says at Least 37 Foreigners Dead in Siege

The United States said on Monday that three American hostages were among the foreign captives killed in the Algerian hostage crisis, while the official tally of the dead rose steeply from 23 to 37.

How M.I.T. Ensnared a Hacker, Bucking a Freewheeling Culture

M.I.T.'s decision to catch a person illegally downloading content led to charges of computer and wire fraud against Aaron Swartz, who died of an apparent suicide.

China Looks to Aerospace Industry in a Bid for Growth

Aerospace represents the latest frontier for China as Beijing's leaders try to find new ways to invest $3 trillion of foreign reserves.

Video: Obama's Inauguration Speech

President Obama delivered his inaugural speech in the nation's capital on Jan. 21, 2013.

Taking Note

Obama's Second Inauguration

Repeating the phrase "we the people," the president tried to appeal to Americans' better natures.

In Euro Zone, Signs of Progress and Fears of Complacency

Europe's political leaders have taken important steps to improve spending discipline among euro members, but have yet to address some serious flaws in the structure of the euro zone.

A Call to Raise Stature of Euro Overseers

Jeroen Dijsselbloem of the Netherlands addressed fellow euro zone finance ministers in the Eurogroup. He is expected to be named the body's next leader.

With Tax Advantages Looking Shaky, Private Equity Seeks a New Path

The private equity industry is discussing how to respond to a new reality: its long-held tax advantages are likely to disappear.

Dreamliner Troubles Put Boeing on Edge

If the issue with smoldering batteries proves more complicated, it could threaten plans to expand production of the planes, and the jobs that go with them.

Swarming a Book Online

Angry fans bombarded Amazon with dozens of negative reviews of a new biography of Michael Jackson and got several favorable notices erased.

NYT | Breaking News (January 21, 2013).: In Second Inaugural, Obama Says ‘We Are Made for This Moment’

BREAKING NEWS Monday, January 21, 2013 12:06 PM EST
After renewing his oath of office on Monday, President Obama said in his second inaugural address, “We, the people, declare today that the most evident of truths – that all of us are created equal – is the star that guides us still.”
“My fellow Americans,” Mr. Obama said, “we are made for this moment, and we will seize it – so long as we seize it together.”


BIV | Today's Business News (January 21, 2013).: Auditor General to examine BC Place renovation fiasco

Politics and Policy

Auditor General to examine
BC Place renovation fiasco

B.C. Auditor General John Doyle will take a closer look at the costs of the controversial BC Place Stadium renovation, it was revealed ... READ MORE



Vancouver tech company Jostle raises $3.1 million

Vancouver-based technology company Jostle this morning announced that it has secured $3.1 million in equity investment from ... READ MORE

Mining and Energy


Cease-traded Barkerville Gold announces revised report, AGM timing

Cease-traded Barkerville Gold Mines Ltd. has announced that it expects to file a revised, compliant technical report on its Cow Mountain gold deposit by ... READ MORE

More News...


Canfor to invest $40 million in Mackenzie sawmill

B.C. launches $5 million fund to compensate unpaid forestry contractors

Coastal Contacts third best at using social media for web traffic

Victoria invests in skills training at Kwantlen


This Week's Issue

Delta approves 37-storey residential tower as Metro Vancouver councils aim to increase urban density

Tower power on the rise as municipal governments struggle to diversify housing mix ... READ MORE

Gordon Price


Regional transit consensus needed now

Who would vote to, yet again, bump a suburban municipality down the list so that Vancouver can get yet another hugely expensive ... READ MORE

Forty Under 40 Celebration

Leading up to our gala awards dinner on January 29, BIV Today will highlight a selection of honorees each day. To book your table ... CLICK HERE

Juggy Sihota-Cahil, Telus

Aaron Smith, GoVoluntouring



Money Show Investors Daily Alert (January 21, 2013).: 4 Cash Cows for Bad and Good Times


Jim Jubak on

Today's Top Pros' Top Picks

Today's Gurus' Views & Strategies

Today's Charts in Play Exclusive Interviews

Ideas from Around the World

Today's Featured Videos & Exclusive Interviews
Asset Allocation in the Era of Deleveraging, Simon Caufield, Neil George, Christopher Taylor, Jeff Sims

The Economist | New Selected Articles (January 21, 1013).: The second term auguries

The EconomistNew on

Daily chart: Second term unlucky
The economic performance of American presidents tends to deteriorate during their second term
read more »
Charlemagne: A Hanoverian thriller
An election in Lower Saxony foreshadows the federal election later this year
read more »

Analects: Young and restless
Chinese contemporary art sees 50 flowers blooming, none alike
read more »

Babbage: Difference Engine
Who needs a television four times sharper than HDTV?
read more »
Schumpeter: Mega relaunch
Kim Dotcom, a controversial entrepreneur is back, but probably not for long
read more »
Newsbook: Leaders without followers
There is little trust in the people congregating in Davos for the World Economic Forum
read more »

ADVFN III Evening Euro Markets Bulletin (January 21, 2013).

ADVFN III Evening Euro Markets Bulletin
Daily world financial news Monday, 21 January 2013

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London close: Stocks extend gains on quiet day
Market Movers
  • techMARK 2,222.99 +0.21%
  • FTSE 100 6,180.98 +0.43%
  • FTSE 250 12,994.94 +0.38%
With Wall Street closed for Martin Luther King Day on Monday, the UK stock market took advantage of low volumes to push London's benchmark index close to levels not seen in five years.

"European stock markets benefitted from the lack of news, earnings and economic data released today with the major indices higher by around 0.5%," said Market Analyst Craig Erlam from Alpari this afternoon.

"The FTSE 100 moved ever closer to May 2008 highs as the stock market bubble continued to rise supported by monetary stimulus measures from all over the globe, a lack of bad news out of the Eurozone and extremely low earnings expectations," he said.

Eurozone finance ministers (the Eurogroup) are meeting in Brussels today where they are expected to elect the a new head with Jean-Claude Juncker stepping down from the post after having served for eight years. Holland's Finance Minister Jeroen Dijsselbloem is expected to take the helm.

Stocks also made gains as a two-day Bank of Japan meeting commenced, with expectations high for bond-buying announcements. According to a Bloomberg survey, most analysts expect a 10tn-yen increase in asset purchases.
FTSE 100: Admiral, IAG and RBS provide a lift
Insurance giant Admiral surged today after Goldman Sachs upped its view on the shares from 'neutral' to 'buy' and hiked its price target from 1,160p to 1,500p. Admiral was followed closely by sector peer Aviva.

Airline operator IAG was performing well after Credit Suisse lifted its recommendation from 'neutral' to 'outperform', citing "expected progress" at Spanish unit Iberia. "The market has begun to price in Iberia progress. However resolution of labour challenges would likely drive significantly greater confidence in management's ability to achieve 2015 targets", the broker said.

Royal Bank of Scotland (RBS) rose on reports it is planning to divide its investment bank into two separate divisions. The transformation would see the RBS's markets business split from its international banking division.

Gold miner Randgold also gained after saying that production has returned to normal at its Tongon mine after a fire in the mills section of plant three weeks ago.

Leading the downside was publishing and education company Pearson after its cutting its full-year profit guidance slightly. Meanwhile, the company said that the tough market conditions and structural industry changes seen at the end of 2012 have continued into 2013.

Shares in aerospace engineer Meggitt were weighed down by concerns that one of the group's subsidiaries' products could be linked to the grounding of Boeing 787 Dreamliners.

Aggreko was hit by a downgrade from analysts at Bank of America to 'neutral', while luxury brand Burberry fell after sector peer Richemont after missed revenue forecasts.

Drinks group Diageo was lower after UBS cut its recommendation to 'neutral'. Rival SABMiller was also down after saying that it is to sell its Panama-based milk and juice business to narrow the focus of the Cerveceria Nacional division. SAB is to present its third-quarter trading update tomorrow.
FTSE 250: Afren up after record performance
Oil and gas group Afren was a high riser after saying that production levels last year hit a record-high as it labelled its exploration and appraisal campaign a "significant success". Net production in 2012 totalled 42,830 barrels of oil equivalents per day (boepd), in line with the guidance range of 42,000-46,000 boepd given at the half-year results statement in August.

Transport and logistics group Stobart also rose after saying that Non-Executive Chairman Rodney Baker-Bates is to retire.

easyJet finished lower after founder Sir Stelios Haji-Ioannou warned directors he will sell his 37% family stake in the airline if they enforce plans to buy new aircraft, according to reports. He voiced his concern over the company's expansion plans in an open letter published today, accusing directors of "squandering" cash on new planes.

FTSE 100 - Risers
Admiral Group (ADM) 1,211.00p +4.94%
Aviva (AV.) 374.90p +2.38%
Weir Group (WEIR) 1,950.00p +2.31%
Royal Bank of Scotland Group (RBS) 366.90p +2.26%
GlaxoSmithKline (GSK) 1,405.00p +2.11%
International Consolidated Airlines Group SA (CDI) (IAG) 212.50p +1.97%
GKN (GKN) 248.10p +1.97%
Smith & Nephew (SN.) 710.00p +1.79%
National Grid (NG.) 695.00p +1.68%
British American Tobacco (BATS) 3,223.50p +1.67%

FTSE 100 - Fallers
Pearson (PSON) 1,202.00p -2.91%
Meggitt (MGGT) 429.40p -1.78%
Kingfisher (KGF) 268.90p -1.47%
Burberry Group (BRBY) 1,367.00p -1.37%
Aggreko (AGK) 1,806.00p -1.31%
Diageo (DGE) 1,819.50p -1.28%
Shire Plc (SHP) 2,071.00p -0.96%
Tullow Oil (TLW) 1,154.00p -0.94%
Rexam (REX) 459.70p -0.91%
SABMiller (SAB) 2,960.50p -0.80%

FTSE 250 - Risers
Ocado Group (OCDO) 95.05p +9.25%
Brewin Dolphin Holdings (BRW) 222.00p +5.46%
WH Smith (SMWH) 646.00p +4.96%
Henderson Group (HGG) 158.70p +4.96%
Centamin (DI) (CEY) 57.80p +4.24%
Stobart Group Ltd. (STOB) 95.00p +3.83%
Ferrexpo (FXPO) 271.20p +3.47%
ITE Group (ITE) 255.20p +3.40%
Drax Group (DRX) 580.50p +3.20%
Lonmin (LMI) 342.90p +3.07%

FTSE 250 - Fallers
Pace (PIC) 213.60p -2.24%
Wetherspoon (J.D.) (JDW) 500.00p -1.96%
Telecom Plus (TEP) 962.00p -1.89% Digital Entertainment (BPTY) 101.70p -1.74%
Informa (INF) 482.90p -1.69%
easyJet (EZJ) 857.50p -1.66%
Workspace Group (WKP) 330.00p -1.64%
Computacenter (CCC) 445.80p -1.57%
EnQuest (ENQ) 123.20p -1.44%
Domino Printing Sciences (DNO) 649.00p -1.37%

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Europe midday: Eurogroup to discuss direct bank recapitalisation
- Eurogroup to discuss bank liquidity injections
- Bundesbank does not expect weakness to last long
- Merkel's CDU loses elections in Lower Saxony
- Juncker sees no decision tonight on Cyprus
- Richemont down on weakness in Asia Pacific

FTSE-100: 0.23%
Dax-30: 0.39%
FTSE-Mibtel 30: 0.06%
Ibex 35: 0.23%
Stoxx 600: 0.16%

The major European equity benchmarks were trading near unchanged by the midday point of the session. That despite the unexpected election defeat of German Chancellor Angela Merkel's CDU in the state of Lower Saxony and ahead of this evening's meeting of Eurogroup finance ministers.

The SPD/Greens won another state from Merkel's CDU/CSU/FDP coalition, even if only by one seat. Nevertheless, Barclays Research did not see the results as affecting policy-making at the federal level. Also to be taken into account, Merkel and her allies in the FDP continue to lead very comfortably in national polls (at 47% versus the SPD/Greens at 38%). Even so, the national elections could still become a tighter race than the latest polls suggest, those economists indicated.

Of interest, some reports indicated that Germany's Economics minister – Rosler- had offered to tender his resignation following the defeat.

Discussions at Monday evening's Eurogroup meeting were expected to include the option of direct bank recapitalization by the European Stability Mechanism (ESM), the aid program for the Spanish banking sector, according to analysts, and the naming of the grouping's new President. No decision was expected on Cyprus.

Acting as a backdrop, US markets were to remain closed in observance of the Martin Luther King Holiday. No less relevant was the start of the Bank of Japan's two day policy meeting, after which it might unveil aggressive new policy measures – at least on the monetary policy side.
Richemont weighs on the Stoxx
Luxury goods maker Richemont announced that sales in the last quarter of 2012 were flat in the Asia Pacific region, even if that follows on several years of exceptional growth in that area of the world, especially in China. To be had in account are the demanding comparative figures for the same quarter last year. As well, wholesale sales growth was lower than in the first six months and in the comparative period due to the cautious approach taken by the Group's retail partners in Hong Kong and mainland China.

Over the weekend German power producer E.On asked unions to return to talks.

In the latest edition of Der Spiegel EADS Chief Executive Tom Enders told the German government that it would not accept interference in the company's decisions on when and where to develop aircraft in the future.

Nokia might be looking to sell £625m in debt to benefit from the recent fall in market rates, according to a source cited by Bloomberg.

From a sector stand-point the worst performers were Personal and household goods (-0.75%), Media (-0.71%) and Real Estate (-0.19%).
Better than expected economic data

The Dutch consumer confidence index for the month of January improved to -36
points from -39 in the month before (Consensus: -39).

Spain's trade deficit narrowed to 29.5bn euros in the 11 month until the end of November, but exports declined by 6% versus a year ago.

German producer prices fell by 0.3% month-on-month in December (Consensus: 0.0%).

In its monthly report for January the Bundesbank said that the weak business cycle should not last long. Euro steady despite election results

The euro/dollar was standing 0.02% lower at 1.3318.

Front month Brent crude futures were down by 0.206 at $111.67.
US Market Report
The US Markets were closed today

MarketWatch | Europe Markets at Close Report (January 21, 2013). : Europe stocks rise; Novozymes jumps

By Sara Sjolin, MarketWatch 

LONDON (MarketWatch) European stock markets moved higher on Monday, taking a cue from a strong U.S. close last week and encouraging comments from the German Bundesbank. 

The Stoxx Europe 600 index XX:SXXP +0.26%  added 0.3% to close at 287.78, climbing back after a soft decline on Friday. 

Inaugural ball: Bollywood style Behind-the-scenes at the Indiaspora Ball for Barack Obama's second Inauguration. Bollywood dance by Mona Kahn Co. Music by "Red Baraat" bhangra band & Shankar Tucker. With host Wendy Bounds. 

“People are more optimistic this year, which is justified after the bearish sentiment last year, but the macro challenges haven’t diminished at all,” said James Ashley, senior European economist at RBC Capital Markets. 

“Some of the tail risks have been removed, but we still have to address fiscal consolidation and a banking union, so there’s still a lot of hard work to be done,” he added. 

Shares of Novozymes AS DK:NZYMB +6.97% rallied 7%, after the Danish biotech firm reported a 38% rise in fourth-quarter net income to 1.56 Danish kroner ($0.28) a share from 1.13 kroner in the year-ago period. For the 2013 outlook, the company said it expected to be able to retain the current level of profitability. 

The company further said that as of April 1, Peder Holk Nielsen would take over as president and chief executive.

Shares of Admiral Group PLC UK:ADM +4.94%  jumped 4.9%, after Goldman Sachs lifted the firm to buy from neutral and added the car insurer to its conviction-buy list. 

On a more downbeat note, shares of Compagnie Financiere Richemont SA CH:CFR -5.59%  sank 5.6%, after the high-end watchmaker issued a cautious outlook and posted lower-than-expected sales for the fiscal third quarter. See: Richemont holiday sales up 9%, Asia-Pacific slows 
The broader European stock markets mirrored gains on Wall Street on Friday, when House Majority Leader Eric Cantor said that the House of Representatives will vote this week to authorize a three-month increase in the debt ceiling to give Congress time to pass a budget. 

U.S. markets were closed Monday for Martin Luther King Day. 

Compagnie Financiere Richemont shares drop on Monday after disappointing quarterly sales.
Most Asian markets ended lower, led by Japan, as a two-day meeting at the Bank of Japan got under way. See: Most Asian markets end lower, led by Japan 
Back in Europe, remarks by the German Bundesbank helped markets stay in positive territory. The bank said in its monthly review that the prospects for the German economy has improved, as companies’ expectations have brightened. The report came just a month after the central bank slashed its forecast for German growth in 2013 to 0.4% from an earlier 1.6% estimate and warned that the economy could sink into recession in the winter months. 

“We know that the German economy probably suffered in Q4 and that it may suffer in Q1 as well. But if you look at the structural fundamentals in Germany, they are fairly robust,” said Ashley from RBC Capital Market. 

“We are still largely upbeat, but it’s quite telling that the German economy, which is one of the strongest in Europe, only will grow around 0.5% this year,” he said. 

Also on the European agenda, euro-zone finance ministers met for the first time in 2013, with investors speculating that they could name a new chairman as soon as Monday evening.


Among notable movers, shares of Unilever PLC UK:ULVR +0.49%   UL -0.28%  gained 0.5% in London, as Investec Securities raised the foods producer to buy from hold ahead of fourth-quarter earnings later in the week. 

On a more downbeat note in London, shares of Pearson PLC UK:PSON -2.91%  slumped 2.9%, after the publishing firm cut its earnings forecasts for 2012. See: Pearson warns on '12 earnings, flags tough '13 
The FTSE 100 index UK:UKX +0.43%  put on 0.4% to 6,180.98, the highest closing level since May 2008. See: Admiral shares lead U.K. stocks higher 
In France, shares of Carrefour SA FR:CA +2.57%  rose 2.6% to 20.74 euros ($27.61), after Credit Suisse raised the target price on the supermarket retailer to €25 from €20.
Shares of LVMH Moët Hennessy Louis Vuitton FR:MC -1.03%  dropped 1%, tracking luxury-goods peer Richemont lower. 

The CAC 40 index FR:PX1 +0.57%  picked up 0.6% to 3,763.03. 

Outside the main index in France, shares of Air France-KLM FR:AF +3.99%  gained 4% to €8.42, after Citigroup doubled the price target on the airline to €9. 

Germany’s DAX 30 index DX:DAX +0.61%  closed 0.6% higher at 7,748.86, with BASF SE DE:BAS +0.84%  shares up 0.9%. The chemicals firm said it is preparing a squeeze-out of the remaining shareholders of Norway’s Pronova Biopharma ASA. See: BASF prepares squeeze-out for Pronova Biopharma 
Outside the major indexes, shares of PostNL NV NL:PNL +6.87%  jumped 6.9%, after Nomura lifted the stock to neutral from reduce. 

Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

Reuters | Deals Today (January 21, 2013).: Asian tycoons near final battle in war for Singapore's F&N

Asian tycoons near final battle in war for Singapore's F&N SINGAPORE (Reuters) - Thailand's third-richest man has raised his stake and takeover offer for Fraser and Neave Ltd to fend off a bid by a group led by Indonesian tycoon Stephen Riady as the battle for the Singapore property and drinks group draws towards a close.

 BASF, Petronas scrap plans to deepen partnership FRANKFURT (Reuters) - BASF and Malaysian state-owned oil and gas firm Petronas have decided not to pursue an extension of their partnership to a second specialty chemicals plant after failing to agree on terms.

UAE property firms Aldar, Sorouh agree merger ABU DHABI (Reuters) - Abu Dhabi's two biggest property firms, Aldar Properties and Sorouh Real Estate, have agreed on a state-backed, all-share merger that would create a firm with $15 billion in assets and could help to stabilize the emirate's struggling real estate sector.

Santander eyes £2 billion bid for NAB UK assets: paper LONDON (Reuters) - Santander is considering making a 2 billion pound ($3.2 billion) bid for National Australia Bank's UK business to accelerate its British expansion, the Sunday Times reported citing unnamed sources.

 Bids for Independent News & Media South Africa unit fall short: paper DUBLIN (Reuters) - Irish publishing group Independent News & Media has received offers of around 150 million euros ($199.3 million) for its South African unit, about 100 million euros less than the expected price tag, Ireland's Sunday Business Post newspaper reported.

Chorus of Clearwire investors against Sprint bid growing louder NEW YORK (Reuters) - Investors holding 29 percent of the outstanding minority shares of Clearwire Corp are unhappy with Sprint's $2.2 billion bid for the wireless service provider and are pushing for a higher offer.

Thai tycoon trumps Overseas Union bid for F&N, setting up showdown SINGAPORE (Reuters) - Thailand's third richest man has raised his takeover offer for Singapore's Fraser and Neave Ltd , valuing the property and drinks conglomerate at nearly $11.3 billion, a move to fend off a rival bid from a group run by Indonesian tycoon Stephen Riady.

Hutchinson Whampoa wins $130 million contract to upgrade Omani port MUSCAT (Reuters) - Oman has awarded Hong Kong's Hutchinson Whampoa a 50 million rial ($130 million) contract to build and operate a port terminal in the northern industrial city of Sohar, a statement from Port of Sohar said on Saturday.

U.S. regulators, AB Inbev in tough talks on beer deal WASHINGTON (Reuters) - U.S. antitrust regulators are dissatisfied with proposals made by Anheuser-Busch Inbev SA in its bid to buy the half of Mexican brewer Grupo Modelo that it does not already own as it works to finish its investigation of the deal, a source close to the talks told Reuters.

Ontario Teachers' to buy SeaCube Container Leasing for $467 million (Reuters) - Ontario Teachers' Pension Plan, one of Canada's largest pension funds, said on Friday it will buy SeaCube Container Leasing Ltd for about $467 million.