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Dec 5, 2014

The Washington Post Wonk PM - December 5, 2014: Wages are finally rising, but America still needs a big raise + 5 more f.

Wall Street at Close Report on December 5, 2014: U.S. stocks rise on jobs; Dow flirts with 18,000.

U.S. stocks rise on jobs; Dow flirts with 18,000

By

ANORA
MAHMUDOVA

REPORTER

BARBARA
KOLLMEYER


MARKETS REPORTER

NEW YORK (MarketWatch)—The S&P 500 and Dow Jones Industrial Average closed at record levels on Friday, wrapping a seventh straight week with gains.
A surprisingly strong jobs report fueled Friday’s mostly modest, albeit record-setting, advance. The U.S. economy added 321,000 jobs in November, beating the consensus number by 86,000, while unemployment rates remained steady at 5.8%.
With upward revisions to prior months, the payrolls number was far stronger than the consensus forecast by economists polled by MarketWatch, which called for 235,000 jobs. A string of robust job gains over the past several months is likely to prompt the Federal Reserve to speed up the rate hikes.
Worries among investors that interest rates will rise sooner rather than later, have capped gains on Wall Street, according to Kim Forrest, senior portfolio manager at Fort Pitt Capital.
The S&P 500 SPX, +0.17%  rose 3.45 points, or 0.2%, to close at 2,075.37, an all-time high. The gain on the benchmark were led by financials and health-care sector stocks, while energy and utilities sector shares lagged behind.
The Dow Jones Industrial Average DJIA, +0.33% set an intraday high and came within 10 points of 18,000 level, but settled 58.60 points, or 0.3%, higher at 17,958.79. Gains in JPMorgan Chase and Goldman Sachs Group were the biggest among blue-chip stock gainers.
The Russell 2000 RUT, +0.80%  outperformed large-caps again, adding 9.42 points, or 0.8%, to 1,182.42 and added 0.8% over the week. Meanwhile, the tech-heavy Nasdaq Composite COMP, +0.24%  added 11.32 points, or 0.2%, to 4,780.76. The index closed lower over the week.

Economic data: The strong November jobs tally represented the biggest gain since early 2012 and extends the strongest streak of hiring in several decades. Virtually every industry was hiring and many of the new jobs were so-called good jobs with higher paying wages.
In another positive sign, the average hourly wage of American workers rose a strong 0.4% in November to $24.66 after two straight weak readings. Still, wages are only up 2.1% in the past 12 months, a rate that’s barely changed since the recovery began in mid-2009.
Factory orders fell a worse-than-expected 0.7% in October, the Commerce Department reported.

DealBook P.M. Edition - December 5, 2014: Morgan Stanley to Pay More of Bonuses Upfront.



FRIDAY, DECEMBER 5, 2014
TOP STORY
The headquarters of Morgan Stanley in New York.
Morgan Stanley to Pay More of Bonuses Upfront The bank will defer only about 50 percent of its cash bonuses for employees this year, down from the 80 percent that it deferred last year, according to a filing on Friday.

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DEALBOOK HIGHLIGHTS
Senate to Hold Hearing on Cyberattacks Against Finance A panel plans to hold a hearing next week on ways to "protect the financial sector" from cyberattacks, but for now there are no plans to have anyone from the financial services industry testify.
When fear intrudes we can't think straight, says the author. Fay Wray in 1933's
Life@Work: Why Fear Kills Productivity It's in any company's self-interest to create a culture that minimizes fear, Tony Schwartz writes in the Life@Work column.
A Delia's store in Columbus, Ohio, in 2004.
Delia's, Retailer for Teenage Girls, Plans to LiquidateUnable to find a buyer or arrange a financial lifeline, the teenage-focused retailer will file for Chapter 11 bankruptcy protection and seek to close all its stores and distribution centers.
Stefan Ingves, chairman of the Basel Committee on Banking Supervision.
Basel Banking Chief Expects Fine-Tuning of Risk Rules The adjustments in the international banking guidelines could increase the amount of capital that banks need ​and force them to reduce their dependence on borrowed money.
Jamie Dimon, chief executive of JPMorgan Chase, in Washington on Wednesday.
Jamie Dimon of JPMorgan Chase Says, 'No Evidence of Cancer' Jamie Dimon who was given a diagnosis of throat cancer last summer, sent an email to his staff on Friday saying a new round of tests "came back completely clear."
Club Med in Turks and Caicos offers an all-inclusive vacation.
Higher Bid Extends Battle for Club Med Andrea C. Bonomi, the Italian businessman fighting a Chinese investor for Club Méditerranée, raised his bid to $29.65 a share for the French resort operator.
Three Former ICAP Brokers Plead Not Guilty in Libor CaseDanny Martin Wilkinson, Colin John Goodman and Darrell Paul Read are expected to face trial in September, along with three former traders from two British brokerage firms.
Tower cranes in central London in 2008.
British Construction Giant Balfour Beatty Rejects Bid for Its Investment Arm The John Laing Infrastructure Fund, a European investor, had offered to pay about $1.6 billion for the company's portfolio of public-private investments.
Canary Wharf now features 34 office buildings and nearly 700,000 square feet of retail space.
Canary Wharf Owner Says Final Offer by Qatar and Brookfield Undervalues Company The latest all-cash offer valued Songbird Estates, which owns the operator of the Canary Wharf financial and retail complex in London, at about $4.1 billion.
Uber is an on-demand ride-hailing service.
Reuters Breakingviews: Uber Tells Off Critics With Financing Plan A plan to issue securities that convert to stock at a discount to its eventual I.P.O. price shows how the company's chief executive remains in the driver's seat, says Robert Cyran of Reuters Breakingviews.

FTC Report - December 5, 2014: FTC’s 2014 Report Finds U.S. Ethanol Market Remains Unconcentrated.

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The market for fuel ethanol in the United States is unconcentrated, and the industry is less concentrated today than it was ten years ago, according to the Federal Trade Commission’s 2014 Report on Ethanol Concentration
 
Required by the Energy Policy Act of 2005, this is the FTC’s tenth annual report on ethanol market concentration. It concludes that U.S. ethanol concentration, as measured by either production capacity or actual production, has increased slightly since last year, but remains low. As of September 2014, 148 firms currently produce ethanol or likely will begin production within the next 12 to 18 months, down slightly from 156 firms at the time of the FTC’s 2013 Report on Ethanol Market Concentration. The largest ethanol producer's share of domestic capacity is 10.9 percent, unchanged from its percent share in 2013.
The low level of concentration and the large number of market participants make it unlikely that individual ethanol producers or marketers, or a group of such firms could exercise market power or coordinate on price or output levels. Imports and relatively low barriers to entry also serve to constrain individual companies or groups of companies in the United States from controlling prices or output.  
The 2014 Report was submitted to Congress and the Administrator of the U.S. Environmental Protection Agency, as required by law. The Commission vote to issue the report, which was prepared by the staff of the Bureaus of Competition and Economics, was 5-0. (FTC File No. P063000; the staff contact is John H. Seesel, Associate General Counsel for Energy, Office of the General Counsel, 202-326-2702)
The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, NW, Room CC-5422, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Contact Information

MEDIA CONTACT: 
Betsy Lordan
Office of Public Affairs
202-326-3707
More news from the FTC >>

Bloomberg View | Share The View - December 5, 2014: Don't Derail the Recovery.

Bloomberg View
Share The View
THE LATEST OPINIONS FROM BLOOMBERG VIEW

DECEMBER 5, 2014bloombergview.com

JOBS
The Editors: "The U.S. jobs market is making impressive progress toward repairing the damage done by the 2008 recession. Note to Congress: Please don't screw it up." Read more...
QuickTake: "To understand the statistics it helps to know why and how each number is compiled." Read more...

WALL STREET
Matt Levine: "A while ago U.S. banking regulators announced guidelines to prevent banks from making loans to companies at more than six times Ebitda, because the regulators thought those loans were too risky. More recently those regulators have announced, roughly once a week, that they intend to enforce those rules, but for real this time." Read more...

RUSSIA
Leonid Bershidsky: "In his state-of-the-nation speech yesterday, Russian President Vladimir Putin put forward an astonishing justification for his annexation of Crimea. The peninsula, he said, is as sacred to Russians as Temple Mount in Jerusalem is to Muslims and Jews." Read more...

NEWS ROUNDUP
Jonathan Bernstein (Read the news roundup)
  • Sarah Binder at the Monkey Cage explains why Republican senators probably won't rewind the clock on filibusters. Read more...
  • In-parties with term-limited presidents don't stray far for a presidential nominee. Read more...
  • Julia Azari on democracy within the parties: Read more...
Matt Levine (Read the news roundup)
Barry Ritholtz (Read the news roundup)
Zara Kessler on What's Popping
Katie Benner (Read the news roundup)
  • People are talking about ... Uber! Read more...
  • With all these breaches, each one more horrible than the last, wouldn't you think it would be incredibly easy for cybersecurity startups to raise lots of money? Read more...
  • Kira Wampler has joined Lyft to head the company's marketing efforts, after working at the real-estate website Trulia. Read more...

INDIA
Chandrahas Choudhury: "What's the relationship between the number of tourists who visit a country and its visa policy? Some excellent data on this question will soon become available from India, which last week rolled out a new visa-on-arrival policy for citizens of 43 countries, including the U.S." Read more...

ASIA
Noah Smith: "U.S. President Franklin Roosevelt called Dec. 7, 1941, 'a date which will live in infamy,' but to many Americans it's more of an occasion for head-shaking confusion. The surprise attack on Pearl Harbor wasn't a crippling blow so much as an unprovoked act of imperial suicide."Read more...

Bits | The Business of Technology - December 5, 2014: New Financing Round for Uber Puts Its Value at $40 Billion

Friday, December 5, 2014
For the latest updates, go to nytimes.com/bits »


New Financing Round for Uber Puts Its Value at $40 Billion | Uber wants to be the world's private driving service. The company is amassing the war chest to do it, Mike Isaac and Michael J. de la Merced report.
The start-up closed a $1.2 billion round of financing on Thursday, with investors valuing the company at a staggering $40 billion.
That puts a new mountain of cash on top of the $1.5 billion that Uber had already raised. And it may collect even more: Uber may eventually sell an additional $600 million in stock, and it is working with Goldman Sachs to sell, potentially, another $1 billion in debt to some of the Wall Street firm's wealthy private clients.
Uber's ascent is one of the most rapid by a start-up in years. Five years ago, Uber was just an app that allowed customers to summon a private car with the push of a smartphone button. Since then, it has surged in growth to surpass even other members of Silicon Valley's exclusive 11-digit club - start-ups whose valuations exceed $10 billion. Read more »

More From The Times
Apple's iPod Nano. Apple is accused of using a copyright management system in its music software to block other stores.
Suit Against Apple Over iPod May Lack Plaintiff | The company's lawyers claim that the iPods owned by two people represented in the lawsuit were purchased after the period during which Apple is accused of behaving in an anticompetitive manner.
Shoppers last month at a Target store in Chicago.
Banks' Lawsuits Against Target for Losses Related to Hacking Can Continue | A federal judge in Minnesota ruled that Target's role in allowing hackers to get into the retailer's computer network last year was enough to allow banks to proceed with a lawsuit to recoup their losses.
A gun store in Texas notes its acceptance of Bitcoin.
Second Bitcoin Auction Draws Fewer Bidders | The Marshals Service said that 11 registered bidders had taken part and that the agency had received 27 bids, far fewer than the 45 bidders and 63 bids in the first auction in June.
Albert Einstein writing out an equation relating to the density of the Milky Way at the Carnegie Institute in Pasadena, Calif., on Jan. 14, 1931. Einstein left a scattered collection of letters, notebooks and diaries.
Thousands of Einstein Documents Are Now a Click Away| A mammoth effort is underway to digitally publish Albert Einstein's letters, papers, postcards and diaries that have been scattered in archives, attics and shoeboxes.
Few Options for Homeless as San Jose Clears Camp |Environmental concerns have led San Jose to clear a vast homeless camp, but in one of the nation's priciest housing markets, not everyone has a place to go.
Disney to Introduce New Apps Focused on Learning | Disney Imagicademy will release a line of apps dealing with math, science, language arts and other topics and featuring its well-known characters.
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Best of Scuttlebot  News from the Web, annotated by our staff
Dark Social Traffic in the Mobile App Era | FUSION
Many unknown visitors to Websites are actually Facebook mobile app users, writes Alexis Madrigal: "A story's shareability is now largely determined by its shareability on Facebook, with all its attendant quirks and feedback loops. We're all optimizing for Facebook now." - Natasha Singer
For more Scuttlebot, follow @nytimesbits »

European Markets at Close Report December 5, 2014: European Stocks Climb Amid ECB Stimulus Bets, German, U.S. Data | Bloomberg

European Stocks Climb Amid ECB Stimulus Bets, German, U.S. Data


  Dec 5, 2014
European stocks rose to their highest level in almost seven years amid speculation the European Central Bank will consider quantitative easing at its January meeting, and as German factory orders and U.S. payrolls beat forecasts.
The Stoxx Europe 600 Index climbed 1.8 percent to 351.01 at 4:30 p.m. in London. The benchmark gauge, which posted its fourth weekly advance, slid yesterday after ECB PresidentMario Draghi refrained from pledging QE for the euro area at the Governing Council meeting. Draghi said the ECB will reassess the situation early next year.
The council expects to consider a proposal for broad-based asset purchases including sovereign debt at the next monetary-policy meeting on Jan. 22, according to two euro-area central-bank officials familiar with the deliberations.
“European markets are liquidity addicts at the moment,” Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich, said by telephone. “You get rallies whenever somebody eases in the world. The bounce back has been in part due to slightly better economic trends in Europe. We had fears in the market of a possible recession in Germany and they avoided recession so the euro zone looks better.”
German factory orders, adjusted for seasonal swings and inflation, climbed 2.5 percent after a revised increase of 1.1 percent in September, data from the Economy Ministry in Berlin showed today. Economists had predicted a 0.5 percent increase.

U.S. Payrolls

Employers in the U.S. added 321,000 jobs in November, beating forecasts, for the biggest gain since January 2012, figures from the Labor Department showed today in Washington. Thejobless rate held at a six-year low of 5.8 percent.
“It’s a boom economy,” said John Plassard, vice president at Mirabaud Securities LLP in Geneva. “Where is the crisis? The private sector is really strong. There is a seasonality factor, but those figures are incredible. The U.S. economy is really on its way.”
National benchmark indexes gained in 16 of the 18 western European markets, with Greece’s ASE Index rising 4.1 percent for the best performance. Germany’s DAX Index added 2.3 percent, while the U.K.’s FTSE 100 rose 0.9 percent.
Gauges of automakers, banks and telecommunications companies were among the biggest advancers of the 19 industry groups in the Stoxx 600. Daimler AG rose 3.1 percent, Volkswagen AG increased 2.7 percent, and Peugeot SA added 3.5 percent.
Vodafone Group Plc climbed 3.2 percent after Goldman Sachs Group Inc. upgraded the shares to buy from neutral, saying Europe’s largest mobile operator will benefit from mergers and acquisitions activity in the sector. The company is considering a combination with Liberty Global Plc, people familiar with the matter said on Dec. 1.

Banks Advance

HSBC Holdings Plc and Banco Santander SA contributed the most to a gain in an index of banking stocks, rising more than 2 percent each. Lenders in Italy and Greece also advanced. Mediobanca SpA rose 5.1 percent and National Bank of Greece climbed 3.6 percent.
Berkeley Group Holdings Plc climbed 3.6 percent. Revenue in the first half of the fiscal year rose to 1.02 billion pounds ($1.6 billion) from 821 million pounds, and the property developer said it is on course to meet its dividend target.
United Internet AG added 3.1 percent after Goldman Sachs Group Inc. recommended investors buy shares of the Web-access provider, citing strong data-volume growth in Germany.
Intertek Group Plc advanced 2.6 percent. Deutsche Bank AG raised its rating on the product-inspection company to buy, saying the recent decline in shares due to the plunge in oil prices has created an investment opportunity. Intertek slid 14 percent in November.
Enel Green Power SpA declined 1.3 percent after Kepler Cheuvreux SA removed the Italian renewable energy developer from its European utilities list, citing lower estimates for power prices.
To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.netAlan Soughley, Namitha Jagadeesh