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Feb 22, 2013

NYT | Global Update February 22, 2013.: European Commission Offers Grim Forecast for Economy

The New York Times International Herald Tribune
February 22, 2013
Compiled 21:45 GMT

Global Update

TOP NEWS
Euro Watch

European Commission Offers Grim Forecast for Economy

By JAMES KANTER
Growth in the 27-nation European Union will be just 0.1 percent this year, the commission said, while the 17-nation euro zone willl contract 0.3 percent.

Advocates Push Obama to Halt Aggressive Deportation Efforts

By MICHAEL D. SHEAR
Activists say illegal immigrants are being forced out of the country at the wrong moment, as the promise of eventual citizenship seems around the corner in an overhaul of the immigration system.

Justice Department Will Join Lawsuit Against Armstrong

By JULIET MACUR
The suit claims that Lance Armstrong and his associates defrauded the government by allowing doping on the United States Postal Service team.
Arts

Video: Watching the Oscars With...

David Carr and A. O. Scott talk about what they'll be doing on Sunday night for the Academy Awards. Care to join them for the glamour, the glitz and the upsets?
Opinion

Op-Ed Contributor

To Fight India, We Fought Ourselves

By MOHSIN HAMID
At the heart of Pakistan's troubles is the celebration of the militant. And the need of the hour, of the year, of the generation, is peace.
WORLD

Torrential Rains Flood Athens and Strand Motorists

By NIKI KITSANTONIS
Rain of an intensity not seen in decades also led to the death of a woman who apparently suffered a heart attack in her car, and a freak accident at the Parliament building.

Neighbors Kill Neighbors as Kenyan Vote Stirs Old Feuds

By JEFFREY GETTLEMAN
In less than two weeks, Kenyans will line up by the millions to pick their leaders for the first time since a vote in 2007, which set off clashes that killed more than 1,000 people.

Scud Missile Attack Reported in Aleppo

By HWAIDA SAAD and RICK GLADSTONE
The reported attack, which left at least 12 civilians dead, was the second time this week that the Syrian opposition has accused the military of using Scuds on Aleppo's rebel-held areas.
BUSINESS

The Patron of Siena, Monte Dei Paschi, Stumbles

By JACK EWING and GAIA PIANIGIANI
Nowhere are Monte dei Paschi's problems more acutely felt than in Siena. The bank has paid for charitable and civic works for as long as anyone can remember.

Pentagon Suspends F-35 Flights Due to Engine Blade Crack

By REUTERS
The Pentagon on Friday suspended the flights of all F-35 fighter planes after an inspection revealed a crack on a turbine blade in the jet engine of a test aircraft in California.

F.D.A. Approves Breast Cancer Drug

By ANDREW POLLACK
The new type of drug combines the widely used breast cancer medicine Herceptin with a powerful toxin to more effectively kill cancer cells while potentially reducing side effects.
TECHNOLOGY
Bits

Online Gambling Heats Up

By DAVID STREITFELD
Nevada and New Jersey are rushing ahead with online gambling, with Delaware not far behind, but the national landscape will not change until the bigger states get involved.

A Titan's How-To on Breaking the Glass Ceiling

By JODI KANTOR
Sheryl Sandberg, Facebook's chief operating officer, is attempting to start a national discussion for women in the workplace with her new book, and a social movement.

A Front-Row Seat via Video

By STEPHANIE CLIFFORD
Video has become a source that helps the fashion industry determine which runway items will be hits in stores.
SPORTS

Pistorius Is Granted Bail in Killing of Girlfriend

By LYDIA POLGREEN
After hearing impassioned arguments, a South African magistrate set bail for Oscar Pistorius, the athlete accused of murdering his girlfriend, at about $112,000.

France's Best Weapon: Unpredictability

By THE ASSOCIATED PRESS
After starting the Six Nations campaign with surprising defeats to Italy and Wales, the French rugby team is off to its worst start to the championship in 31 years -- and up next is England.

Late Goals by Tottenham and Chelsea Prove Decisive

By THE ASSOCIATED PRESS
Late goals on Thursday by Mousa Dembele of Tottenham and Eden Hazard of Chelsea advanced their clubs to the Europa League's third round.
U.S. NEWS

Thin Snowpack in West Signals Summer of Fire and Drought

By JACK HEALY
Farmers, ranchers and officials across the area had hoped for plentiful snows to replenish the ground and refill rivers, but that has not come to pass.

Democrats Press G.O.P. to Start Talks to Avert Budget Cuts

By JONATHAN WEISMAN and JACKIE CALMES
As disruptions to government services loom, the White House said it backed an alternative Senate Democratic plan for spending cuts and tax increases.
OPINION
Latitude

Running on Amnesia

By MICHELA WRONG
The overriding characteristic of Kenya's election campaign is shamelessness, with candidates asking the public to forget their past deeds.
Op-Ed Columnist

The D.C. Dubstep

By DAVID BROOKS
Politicians in both parties are dancing as though they're secretly in love with sequestration, a total disaster for the country.
Op-Ed Columnist

Sequester of Fools

By PAUL KRUGMAN
Here we go again! That terrible fiscal crisis we were warned about two years ago is just around the corner. Is anyone interested?

BLS Update Week of February 18–22, 2013.

Bureau of Labor Statistics

A listing of the latest publications from the Bureau of Labor Statistics is now available at http://www.bls.gov/opub/update.htm.

Week of February 18–22, 2013

News Releases

  • Volunteering in the United States - 2012. USDL-13-0285 (HTML) (PDF)
  • Department Store Inventory Price Indexes - January 2013. (HTML) (PDF)
  • Real Earnings - January 2013. USDL-13-0284 (HTML) (PDF)
  • Consumer Price Index- January 2013. USDL-13-0283 (HTML) (PDF)
  • Producer Price Indexes - January 2013. USDL-13-0282 (HTML) (PDF)

The Editor's Desk

Beyond the Numbers

Commissioner's Corner

Upcoming News Releases

  • Mass Layoffs (Monthly)
    Tuesday, February 26, 2013 (10:00 AM)
  • America's Youth at 25: School Enrollment, Training, and Work Activity
    Friday, March 01, 2013 (10:00 AM)
  • Regional and State Unemployment
    Friday, March 01, 2013 (10:00 AM)
  • Productivity and Costs
    Thursday, March 07, 2013 (08:30 AM)
  • Employment Situation
    Friday, March 08, 2013 (08:30 AM)
  • Employer Costs for Employee Compensation
    Tuesday, March 12, 2013 (10:00 AM)
  • Job Openings and Labor Turnover Survey
    Tuesday, March 12, 2013 (10:00 AM)


Please refer questions to blsdata_staff@bls.gov.

DealBook P.M. Edition February 22, 2013.: Week in Review: Sweeping Changes or a Symbolic Reprimand?


NYTimes.com Home |Business Day| Video The New York Times


Friday, February 22, 2013
TOP STORY
Week in Review: Sweeping Changes or a Symbolic Reprimand? Prosecutors, shifting strategy, are building a new model for Wall Street cases. | Morgan Stanley is striving to coordinate two departments often at odds. | Andrew Ross Sorkin says Steven L. Rattner's reputation, once sullied, has acquired a new shine.
For the latest updates, go to dealbook.nytimes.com »

A look back on our reporting of the past week's highs and lows in finance.
Mergers & Acquisitions
Rothschild Loses Fight for Control of Indonesian Mining Giant Shareholders of Bumi voted against a major board change proposed by the British financier Nathaniel Rothschild, Mark Scott reported.
Office Supply Rivals' Merger Leaked by a Wayward Report A mistake by Thomson Reuters delivered an unwanted jolt to what Office Depot and OfficeMax had hoped would be a carefully choreographed union of equals, Michael J. de la Merced reported.
Office Depot May Merge With a Rival in Retailing Mr. de la Merced examined the deal talks on Monday.
Reader's Digest in Second Filing for Bankruptcy Four years after its first bankruptcy, the magazine is making the move to cut its $465 million debt by converting it into equity held by creditors, Mr. de la Merced reported.
Investment Banking
Credit Agricole Cites Write-Downs in Posting a Record Loss The chief executive pointed to positive signs that the French bank had turned a corner, David Jolly reported.
Colm Kelleher, left, who runs Morgan Stanley's investment operations, and James P. Gorman, chief executive of the company.
Morgan Strives to Coordinate 2 Departments Often at Odds Pressure mounts to coax greater profits from the low-margin brokerage business by finding ways for retail and investment banking to work better together, Susanne Craig reports.
Private Equity
Andrew Ross Sorkin.
DealBook Column: A Reputation, Once Sullied, Acquires a New Shine Andrew Ross Sorkin says that Steven L. Rattner's re-emergence as a power player is well under way.
Hedge Funds
Court Gives Investor an Edge in a Lawsuit Against Apple A federal judge said on Tuesday that he was leaning toward David Einhorn's contention that Apple had violated securities regulations by bundling several shareholder proposals into one matter, Mr. de la Merced reported (On Friday, the judge blocked Apple from allowing a shareholder vote on the preferred stock proposal).
I.P.O./Offerings
For Michael Kors Insiders, Cashing Out Is Very Much in Fashion Aggressive selling by the clothing designer and his colleagues added to the large volume of share sales by public company executives in recent weeks, Peter Lattman reported.
In Europe, Indebted Companies May Turn to Public Markets European companies are considering public stock offerings as part of broader plan to pay down debt and bolster profit, Mr. Scott reported.
Legal/Regulatory
The Trade: A Revolving Door in Washington With Spin, but Less Visibility Jesse Eisinger of ProPublica says that the important fights in Washington are happening away from the media gaze. For lobbyists, the real targets are regulators and staff members for lawmakers.
Anheuser-Busch and U.S. in Talks to Resolve Antitrust Concerns The Grupo Modelo deal is a vital merger for Anheuser-Busch InBev, which has been seeking greater access to emerging markets, Mr. de la Merced reported.
Deal Professor: 'Currency War' Is Less a Battle Than a Debate on Economic Policy Steven M. Davidoff says that big countries are responding to their own economic downturns by easing monetary policies, but emerging market economies that are affected cannot respond with similar effectiveness.
F.B.I. Said to Be Looking at Heinz Trade The F.B.I.'s involvement adds to the scrutiny surrounding the auspiciously timed options, by an investor or investors who have not yet been identified, Ben Protess reported.
Lanny A. Breuer, the head of the Justice Department's criminal division.
Prosecutors, Shifting Strategy, Build New Wall Street Cases In prosecuting big banks, the government is seeking a balanced approach, aiming to hold financial institutions accountable without shutting them down, Mr. Protess reported.

DEALBOOK HIGHLIGHTS
In Push for Transparency, Law Firm Releases Financial Results In a groundbreaking move, K&L Gates, one of the country's largest law firms, disclosed its financial results online, as clients are asking more questions about the financial state of the firms they employ.
Consumer Complaints May Offer Insight Into Pyramid Schemes Regulators have given no indication of what they think about Herbalife's business practices. But the complaints against the diet supplement company's business practices may offer some insight into the government's assessment.
In Dell's Waning Cash Flows, Signs of Concern Going private may allow the company to slash costs, which preserves cash. But management may also feel liberated to spend more on initiatives, which could deplete cash initially.
Breakingviews: After Heinz Deal, Other Food Companies Could Be Takeover Targets Quentin Webb says that many big food companies have strong profitability and staying power, so mergers could offer good values for the right merger candidate.
Breakingviews: Citigroup Pay Plan Raises the Bar Just a Bit Antony Currie says that under the new plan, the bank's target for return on assets is still being set too low.
Buzz Tracker
Mindful of Bubbles in a Boom for Deals There have been over a thousand mergers and buyouts in the first months of 2013, leading some to wonder if the markets are overvalued, James B. Stewart writes in The New York Times.
ING Group Appoints New Chief Executive The Dutch financial giant ING Group said on Friday that Ralph Hamers, head of its Belgian division, would become the firm's new chief executive on Oct. 1. ING, the largest Dutch bank, which was bailed out by its national government in 2008, announced this month that it would cut 2,400 jobs.
Evonik of Germany Prepares for I.P.O. The chemical company, which is part owned by the private equity firm CVC Capital Partners, canceled plans to go public last year, and analysts say the new listing could value the company at more than $15 billion.
DealBook Video
Week in Verse: 'It Wasn't Me' Will the "Shaggy Defense" work for prosecutors criticized for letting Wall Street off the hook or financiers accused of using "pay to play" practices?


MarketWatch | Wall Street at Close Report February 22, 2013.: U.S. stocks rallied on Friday after better-than-expected results from personal-computer maker Hewlett-Packard Co. and an upbeat report on German business confidence.

By Kate Gibson and Polya Lesova, MarketWatch 

NEW YORK (MarketWatch) — U.S. stocks rallied on Friday after better-than-expected results from personal-computer maker Hewlett-Packard Co. and an upbeat report on German business confidence.
The Dow Jones Industrial Average DJIA +0.86% rose 119.95 points, or 0.9%, to end at 14,000.57, leaving it up 0.1% for the week. 

H-P HPQ +12.28%  led Dow gains a day after the company projected a second-quarter profit and reported quarterly revenue that topped estimates. Shares of H-P surged 12%.
 
Wall Street also found support from a survey of German business executives showing sentiment in February rose to its highest reading since April. Read more about how data prompts rise in European stocks..
 
Recovering some of the losses sustained during the past two sessions—its worst two-day drop since early November—the Standard & Poor’s index SPX +0.88%  climbed 13.18 points, or 0.9%, to 1,515.60. 


Week ahead: sequester deadline
The sequester spending cuts will go into effect next Friday, and Apple holds a shareholder meeting. Photo: Getty Images 

Materials, technology and financials led gainers among its 10 major industry groups. 

For the week, however, the S&P 500 fell 0.3%, snapping its seven-week winning streak, its longest such stretch since the one that ended Jan. 14, 2011. 

“The general advice is to watch for a shorter-term correction, but recognize we may not be there yet. This market may not be ready yet to give up the ghost,” said Bruce McCain, chief investment strategist at Key Private Bank. 

McCain is among the market strategists who believe equities are in need of a pullback to digest recent gains, saying a return by the S&P 500 to 1,400 or below would be reasonable, and would allow the benchmark index to move on to yearly gains of 10% to 15%. 

The Nasdaq Composite COMP +0.97% gained 30.33 points, or 1%, to end at 3,161.82; for the week, the index dropped 1%. 

More than 682 million shares traded on the New York Stock Exchange. Composite volume exceeded 3.39 billion.

The exchange-traded funds DIA +0.94% SPY -0.08% QQQ -0.04% that track the benchmark indexes also gained. 

Among individual stock movers, Cabot Oil & Gas Corp. COG +11.05%  was among the top gainers in the S&P 500. Its shares rallied 11% after the oil and gas producer reported a 55% surge in fourth-quarter earnings, with the results topping expectations. Read: Cabot Oil profit up 55% as production increases. .
 
Abercrombie & Fitch Co. ANF -4.46%  was the top decliner in the S&P 500, with its shares down 4.5% after the clothing retailer’s disappointing full-year outlook spooked investors. Read: Abercrombie & Fitch tries team tactic to end slump..
 
The underlying trend for equities in the U.S. and globally is anticipating what monetary authorities will be doing, said McCain. “We’re back to reading Federal-Reserve tea leaves, trying to figure the amount of money they are going to pump in both here and overseas,” he said. 

Federal Reserve Chairman Ben Bernanke brushed off talk the central bank’s ultra-easy monetary policy is creating asset bubbles, Bloomberg News reported Friday, citing unnamed people who went to a meeting Bernanke held this month with dealers and investors. Read more on Bernanke reportedly brushing off bubble talk..
 
Bernanke’s reported comments to the 15-member Treasury Borrowing Advisory Committee dismiss a key concern coming out of the minutes of the last Fed meeting, namely varying views that hinted “our Fed is going to ease up on its easing,” said McCain, who discounted such a move anytime this year. 

Bernanke will testify on monetary policy to Congress next week. 

Friday’s rise follows two straight days of declines that had the Dow industrials losing 155.05 points, or 1.1%, its biggest two-day drop since late December. 
 
Kate Gibson is a reporter for MarketWatch, based in New York. Follow her on Twitter @MWKateGibson. Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.