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Dec 4, 2013

Bloomberg | The Market Now - Madoff & the Dead | Forex Investigations | Apple's $147 Billion.

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The news that drives the U.S. and global markets.


December 4, 2013For more, visit Bloomberg.com/markets >>
Apple's Golden Hoard
by Mark Gimein
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Carl Icahn, who's been at it for more than three decades, is doing what he does best, again: Getting companies to part with their cash. Having publicly and privately urged Apple to increase its stock buyback program, Icahn's moved beyonddinners with Apple Inc. CEO Tim Cook to putting on the table a formal shareholder proposal for a $50 billion stock buyback.
 
Which raises the question: Just why should buying back shares or issuing dividends raise a company's stock price? In theory, the value of the cash hoard -- and really, hoard is the right word for Apple's $147 billion in cash -- should be the same whether it's in investor pockets or in a company's accounts.
AAPL-Cash-Chart

That's the theory, anyway. In practice, it's no secret that managers of all kinds have a high opinion of themselves as stewards of capital. Icahn told Time Magazine that his proposal is not an indictment of Cook, whose performance he praised. No one would say that Apple has not managed its business well.

Still, the nature of management is to want to hold on to cash. Cash tends to build up when times are good (obviously) and get spent when businesses are floundering and (less obvious, especially to management) less able to put it to use. Investors are happy when companies turn a profit, and they tend to get just a bit happier, as Icahn has shown time and again, when they can wrestle some of that profit out of them.
Yes, You Can Hurt the DeadMadoff Cut Dead Client's Payout With Fake Loss, Jury Told
FEATURED
Icahn Plans Shareholder Vote Pushing Apple to Boost BuybackActivist investor Carl Icahn said he will pursue a shareholder vote to force Apple Inc. (AAPL) to boost its stock buyback plan, stepping up his campaign to unlock more of the cash held by the world's most valuable company. Read the full storyApple_thumbnail
Wall Street Sweats Out Volcker Rule Impact on RevenueWall Street banks, which already shut proprietary trading units that helped fuel record profits, are girding to learn next week how much revenue the Volcker rule may cut from the $44 billion they say comes from market-making.Read the full storyTreasury_thumbnail
World's Biggest Pension Fund Sees Japan Fail on 2% InflationThe Bank of Japan's unprecedented monetary easing will fail in its goal of spurring 2 percent inflation, according to Takahiro Mitani, president of the fund that manages the world's largest pool of pension savings. Read the full storyAbe_thumbnail
Traders in FX Probe Said to Face FCA Taping of Lawyer InterviewsBanks under investigation for currency rate-rigging were told to record all questioning of employees and hand them over to investigators, as the U.K. markets regulator seeks to prevent interference with the probe, according to four people with knowledge of the case. Read the full storyEuro_Thumbnail
Read more news at Bloomberg.com >>
VIDEO
spacex-threat
Is SpaceX a Threat to Boeing and Lockheed?
Bloomberg's Cory Johnson and Bloomberg Businessweek's Ashlee Vance discuss the implications of SpaceX's launch of the Falcon 9 rocket. They speak on Bloomberg Television's "Bloomberg West." Watch the video>>

NYT | Asian Morning Today's Headlines December 05, 2013:As Biden Visits, Chinese Push Back Over Air Zone.

The New York Times
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Thursday, December 5, 2013


Top News
Vice President Joseph R. Biden Jr. arrived in Beijing from Tokyo on Wednesday.
As Biden Visits, Chinese Push Back Over Air Zone

By MARK LANDLER

China said the new zone, which has ignited tensions with Japan, was permanent, but indicated no decision had been made on how aggressively to enforce it.
Joaquín Almunia, the European Union's competition commissioner said that the European Commission was determined to fight

DEALBOOK

E.U. Imposes $2.3 Billion in Fines Over Rate-Rigging Scandal

By CHAD BRAY and JACK EWING

Joining a chorus of regulators worldwide, European Union antitrust officials fined a group of global financial institutions - including for the first time two American banks.
. CommentComments
. Interactive Understanding Libor
John R. Allen, the former American commander in Afghanistan, will present the West Bank security proposal to Prime Minister Benjamin Netanyahu of Israel on Thursday.
U.S., Stepping Up Role, Will Present West Bank Security Proposal to Israel

By MICHAEL R. GORDON and JODI RUDOREN

American officials will offer detailed ideas about security arrangements under a possible peace agreement with the Palestinians.
For more top news, go to INYT.com
Editors' Picks
Jacob Deng Mach during physical training at the Atlanta Police Academy in May 2012

MAGAZINE

Video VIDEO: The Trials of Jacob Mach
A 24-minute documentary follows a Lost Boy who, 12 years after leaving Sudan, has found that the dream of a better life is both all around and just outside his grasp.

OPINION | OP-ED CONTRIBUTOR

Why the Dutch Love Black Pete

By ARNON GRUNBERG

A national debate in the Netherlands underscores how the fear of losing identity runs deep.
World
An Islamist fighter roamed through Aleppo, Syria, last December. Infighting among jihadist groups has recently mitigated their threat there, but that may not last.
Jihadist Groups Gain in Turmoil Across Middle East

By ROBERT F. WORTH and ERIC SCHMITT

Al Qaeda's leader, Ayman al-Zawahri, has indicated that he views Syria as a promising staging ground, and officials are concerned that a base there could present a rising threat to Israel and Europe.
. Syria Crisis Is Worsening, U.N. Relief Official Says
U.S. Aims to Blunt Terrorist Recruiting of English Speakers

By ERIC SCHMITT

Analysts will for the first time post messages on English-language websites that jihadists use to recruit, raise money and promote their cause.
Hezbollah Military Leader Is Assassinated Near Beirut

By ANNE BARNARD and BEN HUBBARD

As questions swirled about why and by whom the leader, Hassane Laqees, was targeted, Hezbollah accused Israel, saying it would have to bear "ramifications."
. The Lede: Image Links Official to Battle for Syria
For more world news, go to NYTimes.com/World
Business
OPEC Stands Pat on Oil Production Quotas

By STANLEY REED

The big exporters, meeting in Vienna, saw no reason to make changes that would affect prices, which have held relatively high this year.
Andy Rubin is the engineer heading Google's robotics effort. He is the man who built the Android software for smartphones.
Google Puts Money on Robots, Using the Man Behind Android

By JOHN MARKOFF

Led by Andy Rubin, who built the Android software, Google has acquired seven companies with hopes to automate manufacturing and even rival Amazon in retail delivery.
U.S. Senators Say South Korea Should Not Hire China Firm

By DAVID E. SANGER

Two senators are warning that dealings by Huawei, the Chinese telecommunications firm, could allow the Chinese government access to the networks of South Korea, an American ally.
For more business news, go to INYT.com/Business
Technology
In June, IBM agreed to pay about $2 billion for SoftLayer Technologies, which has a global network of more than a dozen data centers, including this one in Dallas.

BITS BLOG

IBM's Big Plans for Cloud Computing

By QUENTIN HARDY

The company plans to introduce a slew of new products and services to its cloud computing offerings in 2014.
Beats Music Streaming Service Says It Will Begin in January

By BEN SISARIO

The service, which intends to compete with Spotify, hopes to build on the popularity of Beats headphones.
Edith Ramirez, chairwoman of the Federal Trade Commission, in Washington on Wednesday.
F.T.C. Says Sponsored Online Ads Can Be Misleading

By EDWARD WYATT

There are fears that what has become known as native advertising," "paid links" or "sponsored content can confuse consumers, even when the information is labeled advertising.
For more technology news, go to NYTimes.com/Tech
ADVERTISEMENT
Sports
A gas pipe, one of 43 strategically placed pipes along the mountain, can emit explosive bursts of oxygen and propane to create small, controlled avalanches.
Hoping to Tame the Snow in Sochi

By JOHN BRANCH

Using backhoes, explosive charges and a network of dams and piping, a team of experts is working to protect the new Russian resort that will host the Sochi Games.
. Graphic  Graphic: Keeping Avalanches Out of the Games
. Vonn Set to Test Knee
Matt Prior's problems batting go back to the start of the last English season.

CRICKET

English Wicketkeeper Struggles to Break Long Slump

By HUW RICHARDS

Matt Prior needs to overcome his struggles with the bat if England's cricketers are to retain the Ashes.
Adidas on Tuesday unveiled the Brazuca, the official match ball of the 2014 World Cup in Brazil.
Brazuca: The World Cup Ball

By JACK BELL

The official match ball for the World Cup was unveiled by Adidas on Tuesday.
For more sports news, go to INYT.com/Sports
U.S. News
Preparing the grave of Ronald Westbrook in Rossville, Ga.
One Man Lost and Impaired, the Other Fearful and Armed

By KIM SEVERSON

A man suffering from Alzheimer's somehow ended up miles from home, jiggling a couple's doorknob in the pre-dawn hours, and his shooting death has added another chapter to the debate over self-defense laws.
House Votes to Extend Gun Law Without New Provisions for 3-D Printed Firearms

By JEREMY W. PETERS

The House voted overwhelmingly on Tuesday to extend a law banning firearms that can pass undetected through X-ray machines, but did not include provisions regulating guns made with 3-D printers.
New ads on bus shelters in Phoenix promote gun-safety lessons. The city removed earlier ads that said
Case Over Gun-Safety Ads Fosters Unlikely Alliance

By FERNANDA SANTOS

An Arizona appeals court heard arguments on whether Phoenix was within its rights to remove bus shelter ads that proclaimed "Guns Save Lives," which it said constituted political speech.
For more U.S. news, go to NYTimes.com/US
Opinion
Thomas L. Friedman

OP-ED COLUMNIST

Bibi and Barack, the Sequel

By THOMAS L. FRIEDMAN

The prime minister of Israel and the American president are together again over the Iran talks and peace with the Palestinians.
. Columnist Page
Vali Nasr

OP-ED | VALI R. NASR

Iran's Economic Crossroads

By VALI R. NASR

Tehran is weighing the relative benefits of deal-making and economic reform, and is experimenting with both.
For more opinion, go to INYT.com/Opinion

DealBook P.M. Edition December 04, 2013: E.U. Imposes $2.3 Billion in Fines Over Rate-Rigging Scandal



WEDNESDAY, DECEMBER 4, 2013
TOP STORY
Joaquín Almunia, the European Union's competition commissioner said that the European Commission was determined to fight
E.U. Imposes $2.3 Billion in Fines Over Rate-Rigging Scandal Joining a chorus of regulators worldwide, European Union antitrust officials fined a group of global financial institutions - including for the first time two American banks.
Reuters Breakingviews: Libor Bank Fines Reflect Rewards of Cooperating The lenient treatment of Barclays and UBS, the first banks to settle with financial agencies in the Libor case, highlights the risks in delaying settlements, write Dominic Elliott and George Hay.
For the latest updates, go to dealbook.nytimes.com »
DEALBOOK HIGHLIGHTS
In Time, Icahn Discloses Latest Push for an Apple Buyback
In Time, Icahn Discloses Latest Push for an Apple Buyback Carl C. Icahn told the magazine that he has filed what's known as a "precatory proposal" with Apple to strengthen his push for the company to increase its stock buyback program.
Standard Chartered Warns on Consumer Banking Profit
Standard Chartered Warns on Consumer Banking Profit Peter Sands, chief of the London-based bank, attributed a "double-digit drop" in the consumer banking results to unprofitable business in South Korea.
Revolution Fund Invests in Sweetgreen Salad Chain
Revolution Fund Invests in Sweetgreen Salad ChainStephen M. Case, the investor who co-founded AOL, is betting that the "farm-to-table" salad chain has the potential to become an iconic brand in the healthy dining category.
LOOKING AHEAD
European Bank Rate The European Central Bank could act more forcefully to stimulate bank lending when it meets on Thursday. According to speculation, the E.C.B. could emulate the Bank of England and offer cheap loans to banks if they lend the money to consumers and businesses. An interest rate cut is considered unlikely after the central bank cut its main rate to 0.25 percent, a record low, in early November.
British Economic Plan George Osborne, Britain's chancellor of the Exchequer, will make his Autumn Statement to Parliament on Thursday, updating government economic plans based on the latest forecasts. Growth prospects have improved but Mr. Osborne faces political pressure over rising energy bills and fears that the top end of the property market could overheat.
Jobs Report On Friday, the Bureau of Labor Statistics will issue its monthly report on job creation and unemployment in November. The data will be watched closely by traders and investors, because the figures for October were stronger than expected, and another robust reading would heighten the odds that the Federal Reserve will soon begin reducing its stimulus efforts. The consensus among economists polled by Bloomberg News is that the economy created 180,000 jobs in November, while the unemployment rate fell to 7.2 percent from 7.3 percent in October.
For the latest updates, go to dealbook.nytimes.com »
QUOTATION OF THE DAY
"The commission is determined to fight these cartels in the financial sector."
Joaquín Almunia, the European Union's competition commissioner, announcing $2.3 billion in fines over the rate-rigging scandal.