STOCK MARKET WATCH, Wednesday 1 February

[ozymandius]

Wednesday February 1, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1083 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1868 DAYS
WHERE'S OSAMA BIN-LADEN? 1568 DAYS
DAYS SINCE ENRON COLLAPSE = 1529
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON January 31, 2006

Dow... 10,864.86 -35.06 (-0.32%)
Nasdaq... 2,305.82 -0.96 (-0.04%)
S&P 500... 1,280.08 -5.12 (-0.40%)
30-Year Bond 4.69% -0.02 (-0.49%)
10-Yr Bond... 4.53% -0.01 (-0.18%)
Gold future... 575.50 +4.90 (+0.85%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[salin]

1. Great cartoon.

Wonder how the markets will react to jrs SOTU speech.

[EuroObserver]

9. SOTU market reaction? Here's AFL-CIO on "avoiding unnecessary healthcare"

(FT) Borrowing a page from the book it used last year to help defeat President George W. Bush’s Social Security plan, the AFL-CIO on Tuesday called on members of a banking group to abandon a push for expanded use of health savings accounts.
...
The accounts, created in 2003, allow people with high-deductible health insurance plans to set aside part of their wages tax-free to pay for medical expenses, and can be set up through a bank or credit union.

But in a letter to members of the HSA Council – formed in December by the American Bankers Association and the American Bankers Insurance Association to promote their use – John Sweeney, president of the labour federation, said the accounts would shift more costs to workers and undermine employer-sponsored health plans.

“While the banking lobby believes banks will profit from health savings accounts, these same accounts will leave working Americans bearing the financial risk of getting sick,” Mr Sweeney wrote.
...
Mr Bush says the accounts will reduce overall medical costs because those who use them would avoid unnecessary care. But some analysts have warned that the expansion of the accounts could lead to two pools of people – the healthy and the unhealthy – with insurance costs for the unhealthy rising to levels that place them at risk of becoming uninsured or underinsured.

/more...

[Maeve]

16. In other words, it's a good deal if you're financially okay and healthy

If you're not...sucks to be you! And your policy will become prohibitively expensive, so it will get dropped.

And tell me again how businesses that are out for profit will keep costs down compared to an agency that administers a program on a not-for-profit basis...

[EuroObserver]

17. Hi Maeve. You know I can't tell you that!

Sure, I well recall my father, whose company sold artificial bone implants to the UK National Health Service (which once saved my life entirely for free) back in the 'sixties and 'seventies, explaining how aggressive they were about keeping prices down and quality up: since there was no other buyer, the supplier had to take the negotiated deal or leave it. There was very little profit to be had. Now, under BLiar (and Thatcher), profit is no doubt the very first consideration of all parties concerned (except the patient, of course).

Here's what the dimson said, now we watch how it all works out for the benefit of the few:

Keeping America competitive requires affordable health care. (Applause.) Our government has a responsibility to provide health care for the poor and the elderly, and we are meeting that responsibility. (Applause.) For all Americans -- for all Americans, we must confront the rising cost of care, strengthen the doctor-patient relationship, and help people afford the insurance coverage they need. (Applause.)

We will make wider use of electronic records and other health information technology, to help control costs and reduce dangerous medical errors. We will strengthen health savings accounts -- making sure individuals and small business employees can buy insurance with the same advantages that people working for big businesses now get. (Applause.) We will do more to make this coverage portable, so workers can switch jobs without having to worry about losing their health insurance. (Applause.) And because lawsuits are driving many good doctors out of practice -- leaving women in nearly 1,500 American counties without a single OB/GYN -- I ask the Congress to pass medical liability reform this year. (Applause.)

[Maeve]

20. Sigh...if he really wanted to make insurance portable...

SINGLE PAYER!!!! Insure ALL Americans and be done with it! But that would eat into profits...:banghead: :argh:

I'm going to go lie down now...

[EuroObserver]

22. And insure all EQUALLY, right?

Universal Health Care: it's the only way that makes sense.

[Maeve]

40. Absolutely! But "sense" isn't in the picture

We're talking Bushies here! Lots of dollars, but no sense.

[AnneD]

32. Morning Marketeers,

:hangover: I went to a rally last night. We went down to one of the local TV stations and protested during the SOTU. The police were nice and more concerned about keeping us safe. That was a good thing because we did have some people asking us to shut up or be quite. The lead officer went up and spoke to the guy. My thoughts...you need to wake up. We had some great speakers and music and for a rally in the middle of the week-good attendance (50-60). We got about 1-2 min of face time on the morning news. This is the link for the org. If I find photos, I'll post them.

http://houstonworldcantwait.tripod.com/


Happy Hunting and watch out for the bears.

[UpInArms]

58. Forbes: Bush's Health Plans Will Not Fix System

http://www.forbes.com/business/2006/01/31/us-bush-healthcare-cx_0201oxford.html

President George W. Bush Tuesday night proposed expanding health savings accounts in his annual State of the Union address. HSAs, enacted in 2003, are designed to allow individuals to cover part of their current and future medical expenses on a tax-free basis. Although the program is expensive, HSAs could generate a meaningful reduction in health costs.

HSAs give consumers tax incentives to cover more of their out-of-pocket health care expenses. The theory is that this will encourage them to shop around for the cheapest high-quality care, creating market incentives for providers to operate efficiently and contain costs. In conjunction with the Bush Administration's plans to discourage malpractice suits and force providers to share more information on costs with consumers, the idea is to reduce costs by prompting consumers to assume "responsibility" and "ownership" of their health care choices. This fits with Bush's philosophy of using the government to empower individual choice.

An estimated one million people now have HSAs. According to a survey by America's Health Insurance Plans (AHIP), the number of HSA enrollees doubled from Sept. 2004 to March 2005. The plans are particularly popular among relatively young, middle-class families, who wish to cut their monthly insurance premiums.

HSAs and similar schemes are dubbed "consumer-driven" plans because they share two features:

<snip>

With their market-oriented approach, HSAs might help to decrease health spending moderately in the short run and more over time. However, the president's reform initiatives are insufficient to stave off the incipient crisis in the current system. More radical health care reform, while politically fraught, will become an issue after the November elections.

...more...

[EuroObserver]

97. Invest your healthcare account in the stock market!

More here (DU): http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2078994

[PATRICK]

105. the "Whealthy"

could be a nice simple catchword to sink this, but it doesn't look like the WH will put up much of a fight for this this year. Should the Dems blow it in the fall though...

[ozymandius]

2. WrapUp by Ike Iossif - WEEKLY CHARTS

WEEKLY CHARTS

SUMMARY: Last week (1-20-06) we said, "The decline below the lows of the previous week, coupled with a close below support means that there is an 80% probability that the rally is indeed over. Given that some of the technical indicators are at their respective zero line, we may get a bounce early on in the week. However, the overall picture suggests that we ought to look for a further decline to the next support level later in the coming week--if not right at the start. We strongly suggest that you stay in cash until there is evidence that the decline is indeed over; there is none now."

January 27th: We got the bounce and it carried throughout the entire week. Going forward the question is whether last week's action was the start of a new leg to the upside, or was it just a retracement of the previous week's decline. We suspect it was the latter, and here are reasons for thinking that way:

-cut-

In other words, we are not seeing--at least not yet--the things that we ought to be seeing if the market was starting an intermediate term rally. Consequently, our conclusion based upon the current facts is this: there is a chance that the SP may rally to the 1295-1300 zone over the next 5-10 trading days, but if the underlying dynamics do not improve, the rally will fail at that level, and it will be followed by a decline back down to the 1240-1220 area.

http://www.financialsense.com/Market/wrapup.htm

[EuroObserver]

3. Nikkei225 down 1.02% to 16,480.09

Tokyo stocks drop, snapping 6-day winning streak
(Kyodo) Tokyo stocks closed lower Wednesday, snapping a six-day winning streak as overnight declines in U.S. shares prompted investors to sell shares that had recently risen.

The 225-issue Nikkei Stock Average dropped 169.73 points, or 1.02 percent, to 16,480.09. The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange fell 16.53 points, or 0.97 percent, to 1,694.24.

After opening lower, the stock indexes rose into positive territory in the early morning. But the gains were short-lived amid a lack of fresh positive trading incentives. Once the indexes began falling, their losses widened for the rest of the day as investors opted to sell because technical charts suggested Tokyo shares had risen too far too fast, brokers said.

The benchmark Nikkei has risen 1,289.17 points, or 8.4 percent, in the past six trading days.

"Since the pace of the recent rises seemed too fast, the market needed to take a rest," said Kenichi Azuma, equity strategist at Cosmo Securities Co. /more...

Nikkei snaps 6-day win streak as NTT DoCoMo falls
TOKYO, Feb 1 (Reuters) - The Nikkei snapped its longest winning streak in more than two months on Wednesday, falling 1.02 percent as NTT DoCoMo Inc. (9437.T: Quote, Profile, Research) and Mizuho Financial Group Inc. (8411.T: Quote, Profile, Research) lost ground after their earnings failed to impress investors.

But companies whose quarterly earnings beat expectations gained, with Toshiba Corp. (6502.T: Quote, Profile, Research) advancing after a 14-fold increase in profit and Pioneer Corp. (6773.T: Quote, Profile, Research) rising after its operating profit improved nearly threefold.

"Shares in companies that are tied to the domestic economy, such as DoCoMo and Mizuho Financial, have risen in the last year on expectations that they would benefit from an end to deflation," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities. "But I think that theme is largely factored into stock prices now, and there is a chance that their share prices have peaked out."

The Nikkei <.N225> finished down 169.73 points at 16,480.09. /more...

[EuroObserver]

10. First rise in Japan's full-time workers for eight years

TOKYO (AFP) - With Japan's economy on the mend, the number of full-time workers rose for the first time for eight years in 2005, when salaries also increased, the government said.

The number of full-time workers grew by 0.5 percent last year, the labor ministry said.

Stably employed workers -- including part-timers -- rose for a second straight year, increasing by 0.5 percent, the figures showed.
...
The jobless rate eased back to 4.4 percent in December, beating economists' forecast of a figure of 4.5 percent and reinforcing signs that Japan's economy is steadily recovering, the government said Tuesday.

/more...

[EuroObserver]

11. Toshiba, Sony, NEC Elec to co-develop 45-nm chips

TOKYO, Feb 1 (Reuters) - Japan's Sony Corp. (6758.T: Quote, Profile, Research), Toshiba Corp. (6502.T: Quote, Profile, Research) and NEC Electronics Corp. (6723.T: Quote, Profile, Research) said on Wednesday they will co-develop cutting-edge microchips with a circuitry width of 45 nanometres, pooling technological expertise and sharing hefty development costs.
...
Intel Corp. (INTC.O: Quote, Profile, Research), the world's largest chip maker, said in December it would build a 45-nanometre chip factory, which would cost more than $3.5 billion, in Israel -- its second such plant after one being built in Arizona.

/more...

[EuroObserver]

4. European stocks - Factors to watch on Feb 1

European stocks - Factors to watch on Feb 1
LONDON, Feb 1 (Reuters) - European stock markets were seen falling from near 4-1/2 year highs on Wednesday after the Federal Reserve kept its options open and dented pent-up hopes for a quick end to 19 months of U.S. interest rate rises.

Technology stocks looked set lead the way down as Google (GOOG.O: Quote, Profile, Research) lost up to a fifth of its market value in after-hours trade after earnings from the U.S. Internet icon fell short of expectations .

But the healthcare sector may get a lift after Roche (ROG.VX: Quote, Profile, Research) reported forecast-beating results, boosted by strong demand for its anti-cancer and flu drugs. Also due to report earnings and trading updates were Suez (LYOE.PA: Quote, Profile, Research), Enel (ENEI.MI: Quote, Profile, Research) and BSkyB (BSY.L: Quote, Profile, Research).

Closely watched manufacturing surveys are also due across Europe in the morning, culminating with the euro zone PMI at 0900 GMT and the British PMI at 0930 GMT, while in the United States there is the manufacturing report at 1500 GMT.
...
* Spread betters in London are calling the FTSE 100 <.FTSE>, CAC 40 <.FCHI>, and DAX <.GDAXI> indexes between 17 and 30 points down.

/more MARKETS, COMPANY NEWS...

[EuroObserver]

5. Weak European Opening

Swiss SMI up 0.03% at CHF 7813.54 09:33:50 CET
Xetra Dax 30 opens down 0.4% at 5,653.8 in Frankfurt 08:05 GMT
CAC 40 opens down 0.1% at 4,943.5 08:04 GMT
FTSE 100 opens down 0.1% at 5,753,6 in London 08:03 GMT

European stocks fall after Fed move
European equities fell on Wednesday after the Federal Reserve deflated hopes of an end to US interest rate increases, while internet giant Google fell short of expectations with its quarterly earnings. In early trade, the FTSE Eurofirst 300 fell 0.1 per cent to 1,318.08, while Frankfurt’s Xetra Dax shed 0.4 per cent to 5,648.8. In Paris, the CAC 40 fell 0.2 per cent to 4,937.44 and London’s FTSE 100 slipped 0.2 per cent to 5,749.2. In the US on Tuesday, the Federal Reserve increased interest rates by a quarter of a point to 4.5 per cent, but instead of signalling an end to the current policy as hoped, the open market committee said more increses may be necessary to fend off inflation. The Dow Jones Industrial Average fell 0.3 per cent to 10,864.86, while the Nasdaq Composite ended flat at 2,305.82. European software and internet stocks came under pressure after US internet search company Google fell in after hours trade following its quarterly earnings miss. German software maker SAP fell 0.8 per cent to €167.18, T-Online, Germany’s internet service provider, shed 0.6 per cent to €8.05, and Tiscali, the Italian ISP, fell 0.3 per cent to €2.61. Raiffeisen International, climbed 2.5 per cent to €61 as the Austrian bank continued its expansion into the high-growth markets of eastern Europe with the purchase of Russia’s Impexbank for $550m.

European stocks mixed after Fed; Altadis slips
LONDON, Feb 1 (Reuters) - European shares dipped from near 4-1/2 year highs on Wednesday after the Federal Reserve kept its options open on U.S. interest rates, while Altadis (ALT.MC: Quote, Profile, Research) fell after saying cigarette price cuts may hit 2006 profits. German insurer Allianz (ALVG.DE: Quote, Profile, Research) also slipped 2 percent after dealers said UBS had cut its rating to reduce from neutral.

By 0820 GMT, the pan-European FTSEurofirst 300 index <.FTEU3> of leading shares was 0.1 percent down at 1,318.03. The index hit an intraday 4-1/2 year high of 1,325.97 on Tuesday.
...
Switzerland's Roche (ROG.VX: Quote, Profile, Research) ticked up 0.8 percent after reporting forecast-beating results, boosted by strong demand for its anti-cancer and flu drugs. UK satellite broadcaster BSkyB Plc (BSY.L: Quote, Profile, Research) rose 1.85 percent as it reported a 13.7 percent rise in first-half profit after adding a more-than-expected 215,000 customers to its pay-TV service in its second quarter. /more...

FTSE 100 dips but BSkyB offsets fall
LONDON,, Feb 1 (Reuters) - Britain's leading share index dipped on Wednesday, sagging under the weight of an anticipated drop on Wall Street after disappointing figures from U.S. internet giant Google (GOOG.O: Quote, Profile, Research), although shares in BSkyB (BSY.L: Quote, Profile, Research) cushioned the fall as its subscriber growth figures beat expectations.

Shares in BSkyB rose more than 3 percent to lead the list of FTSE 100 risers after saying it had added a more-than-expected 215,000 customers to its pay-TV service in the second quarter. "They were good figures and expectations had not been high," said one trader.

By 0818 GMT the FTSE 100 share index <.FTSE> was down 12.1 points at 5,748.2. /more...

London lower as oil stocks fall
London equities fell in opening trade on Wednesday, following Wall Street indices lower after the Federal Reserve raised interest rates in the world’s biggest economy. The FTSE 100 slipped 0.2 per cent to 5,749.1 and the mid-cap FTSE 250 lost 0.4 per cent to 9,134.2. ...(T)he more bearish outlook across the Atlantic weighed on sentiment. The oil sector, which provided some support in recent sessions, fell in early exchanges as crude prices ticked below $68 per barrel. Royal Dutch Shell fell 0.6 per cent to £20.04 and BP was 0.2 per cent to 675p. Cairn Energy fell 0.9 per cent to £19.07. There were further significant losses for Cable & Wireless after it issued a profit warning and news of a root and branch restructuring before the previous session. HSBC cut its price target on the stock to 92p from 110p. Shares in the alternative telecoms provider lost a further 2.7 per cent to 99.5p, making it the biggest faller on the FTSE 100. /more...

[EuroObserver]

14. European Central Bank May Raise Rates in March

Optimism in Europe about growth is running high, with German consumers the most upbeat in five years, Italian executives positively giddy and even business confidence in France is up for the first time in four months.

That is part of why the European Central Bank, which meets Thursday to discuss interest rates, will soon raise its 2.25 percent refinancing rate - just not this Thursday, analysts and economists say.

In a poll of 48 financial institutions by Dow Jones Newswires, 43 said they expect the bank to take no action when it meets. But looking beyond Thursday, 46 of the 48 said they think the bank will increase the rate by 25 basis points to 2.5 percent at its March meeting.

The bank predicts that inflation - its chief concern - will remain above 2 percent this year because of stronger economic growth, high oil prices and worker demands for increased wages. With growth now strong enough to take the sour anti-inflation medicine of a rate increase, most observers feel the bank will act soon.

The 12-nation euro zone's economy is forecast to grow 1.9 percent this year, up from 1.4 percent in 2005, the ECB has said.

That rising growth, and wage demands - Germany's IG Metall is seeking a 5 percent increase for its 3.4 million members - means the bank is waiting for the right moment to carry out a rate increase, said Joerg Kraemer, chief economist for the HVB Group in Munich, Germany.

/more...

[EuroObserver]

52. Eurozone bonds firmer after PMI data

http://mwprices.ft.com/custom/ft-com/story.asp?dateid=38749.3983912037-859033109&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}
Eurozone government bonds were higher on Wednesday following the Purchasing Managers surveys which showed slightly weaker manufacturing activity in the region. The eurozone manufacturing purchasing managers’ index fell to a seasonally adjusted 53.5 in January from an unrevised 53.6 in December, below analysts’ forecasts. A reading above 50 indicates expansion and the January figure was the second highest since August 2004. The European Central Bank is due to announce its latest decision on interest rates on Thursday and while it is widely expected to hold them at 2.25 per cent, many analysts believe it will raise rates at the next meeting in March. As bond prices rose in mid-day trading, the yield on the two-year Schatz fell 2.8 basis points to 2.938 per cent and the yield on the 10-year Bund was up just 0.1bp to 3.457 per cent.

[EuroObserver]

15. London rally resumes on banking bid talk

http://mwprices.ft.com/custom/ft-com/story.asp?dateid=38749.2397916667-859021237&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}
London equities moved ahead in mid-morning trade on Wednesday, as the prospect of international bid activity returned to rejuvenate the banking sector. After initial losses, the blue-chip FTSE 100 moved 0.5 per cent higher to 5,789.7 as Spanish banking giant BBVA refused to comment on reports linking it witha bid for Lloyds TSB. Shares in the UK high street bank rose 4 per cent to 530¾p, taking it to the top of the leaderboard. Rumour suggested that such a bid could be priced at around 700p per share. The news lifted the wider financial services sector, rekindling expectations of consolidation in the industry. Barclays rose 2.5 per cent to 616p, HBOS was 1.1 per cent stronger at 999½p and Royal Bank of Scotland made gains of 0.3 per cent to £17.46 The mid-cap FTSE 250 ticked 0.1 per cent higher to 9,177.6. British Sky Broadcasting held gains throughout the morning, rising rose 1.8 per cent to 464.2p after it said 215,000 new customers signed up to its pay TV packages in the second quarter, taking its total subscriber number to 8.1m. The company said it remained on track to reach its target of 10m subscribers by the end of the decade

[EuroObserver]

53. European stocks up on earnings, M&A talk

LONDON, Feb 1 (Reuters) - European shares climbed on Wednesday as forecast-beating results from firms such as drug maker Roche (ROG.VX: Quote, Profile, Research) and M&A talk involving banking group Lloyds (LLOY.L: Quote, Profile, Research) fuelled buying and reversed a lacklustre start. Strategists said expectations that strong corporate earnings would drive European stock markets higher this year were gaining purchase after recent company reports, helping equities resume an upward trend after losses in January.

Meanwhile, shares in UK bank Lloyds TSB jumped more than 8 percent at one stage on fresh bid talk, with Spain's BBVA (BBVA.MC: Quote, Profile, Research) identified as a possible predator.

By 1215 GMT Europe's FTSEurofirst 300 index <.FTEU3> was 0.6 percent higher at 1,326.78 points, having hit a fresh 4-1/2 year high of 1,328.48. The index opened flat after the Federal Reserve suggested a campaign of rate increases was near an end while saying higher borrowing costs may yet be needed.

"We had expected earnings to be a positive trigger this year and this is taking place," said ABN AMRO strategist Rolf Elgeti. "In Europe, most companies are surprising to the upside. We have very solid company data and nothing wrong on the macroeconomic side," he said. /more...

[EuroObserver]

79. European markets closed confidently, amid few doubts...

Swiss SMI closed up 0.32% at CHF 7836.17 17:30:12 CET
CAC 40 closes up 1% at 4,999.39 in Paris 16:41 GMT
Xetra Dax 30 closes up 0.9% at 5,726.53 in Frankfurt 16:41 GMT
FTSE 100 closes up 0.7% at 5,801.6 in London 16:46 GMT
FTSE 250 closes up 1.1% at 9,276.1 in London 16:40 GMT
FTSE Eurofirst 300 up 0.9% at 1,331.96 in closing exchanges in London 16:25 GMT

London rally carries FTSE to fresh 4½ year high
London equities moved higher on Wednesday as the prospect of cross-border bid activity returned to rejuvenate the banking sector. After initial losses, the blue-chip FTSE 100 closed 0.7 per cent higher to 5,801.6, a fresh 4½ year closing high, as bid speculation surrounded high-street bank Lloyds TSB, with Spanish banking giant BBVA and Wells Fargo, Bank of America and Citigroup of the US named a possible suitors. The mid-cap FTSE 250 finished the day 1.1 per cent higher to 9,276.1.

European stocks turn higher as banks rally
European equities turned higher on Wednesday afternoon, reversing early losses as banks and drugs stocks led the charge, overshadowing weakness in the telecoms and oil sectors. By close of trade, the FTSE Eurofirst 300 gained 1 per cent to 1,332.09, while Frankfurt’s Xetra Dax added 0.9 per cent to 5,726.53. In Paris, the CAC 40 was up 1 per cent to 4,999.39 and London’s FTSE 100 climbed 0.7 per cent to 5,801.6.

Bid fever lifts FTSE to fresh closing high
LONDON (Reuters) - Top stocks set a fresh 4-1/2 year closing high on Wednesday, lifting the FTSE 100 index through the 5,800-point mark, as bid speculation drove bank Lloyds TSB, consumer products group Unilever and market researcher Taylor Nelson Sofres higher.

An upbeat mood surrounded broadcaster BSkyB as well, up 3.3 percent after revealing its biggest quarterly rise in new customers in three years, while defence group BAE Systems added 3.7 percent after a ballot of its employees showed support for the company's proposals to resolve its pension deficit. Online gambling groups PartyGaming and 888 Holdings were also pushed higher -- bouncing back after three days of successive losses for the sector on profit taking and on hopes of a bullish update from 888 on Thursday.

The positive thrust from nearly 80 percent of the market pushed the FTSE 100 index up 41.3 points to 5,801.6 by the close -- its highest finish since June 2001 as investors seized on attractive stock valuations and hopes that ongoing takeover activity would continue to fuel the market's bullish run.

But strategist Khuram Chaudhry at Merrill Lynch said stocks might soon run into hurdles. "It's a complete reversal from where we were back in 2003 when sentiment was depressed, liquidity was being cut and profits were rising from a trough so that makes me nervous that in the next quarter we'll probably start to see some form of a correction taking place," he said. /more...

[EuroObserver]

89. Feeding frenzy: privileged desperate for ex-Carlyle UK military tech stock

Private investors jostle for a piece of QinetiQ
LONDON (Reuters) - Private investors, keen for a slice of the QinetiQ action when the defence technology company floats this month, have been flooding brokers with calls.

QinetiQ, carved out from the Ministry of Defence's Defence Evaluation Research Agency, floats on the London Stock Exchange on February 10. Stockbroker Hargreaves Lansdown, one of a dozen firms accepting applications from private clients, said it had had 12,000 calls within 36 hours of offering the service. So far, 2,500 of those have applied for 9.2 million pounds' worth of the shares. "I'm sure it's going to be oversubscribed but the lead managers said all investors would be treated on an even basis so private investors won't lose out," Richard Hunter, the firm's head of UK equities told Reuters.

The Association of Private Client Investment Managers (APCIMS) said much of the hype surrounding the float was because the shares had not previously been available to private investors. "It was forbidden fruit in a way. Now it's available investors are saying 'let's have some, it must have been pretty good if they were keeping it to themselves,'" said APCIMS spokesman Kevin Sloane. "There's also a degree of bandwaggoning," he added. "We had 800 calls from investors on Friday and many of those were from people who didn't know what QinetiQ was or how to spell it -- they just didn't want to miss out." The shares have become available to private investors because some stockbrokers decided to act as institutional investors, acquire shares in the float and then sell them onto their clients, Sloane said.

QinetiQ said shares would be sold at between 165 pence and 205 pence each, valuing the company at between 1.1 billion and 1.3 billion pounds. The shares have already been trading on the grey market -- the unofficial trade in pre-listed shares -- as high as 215 pence, which Hargreaves' Hunter said would give private investors a healthy premium on their investment.

However, Sloane said investors needed to make sure they were investing for the right reasons. "When an institution is investing, it's on a very different basis," he said. "It's generally short-term, even when they are not day trading. Private investors tend to put shares away for retirement, or university fees, for about 10 or 15 years. "People need to bear those differences in mind and take advice."

/more...


ed: Puke :puke:

[ozymandius]

6. Today's Reports

Feb 1 12:00 AM Auto Sales Jan
Briefing Forecast 5.4M
Market Expects 5.3M
Prior 5.3M

Feb 1 12:00 AM Truck Sales Jan
Briefing Forecast 7.7M
Market Expects 7.8M
Prior 8.2M

Feb 1 10:00 AM Construction Spending Dec
Briefing Forecast 0.0%
Market Expects 0.2%
Prior 0.2%

Feb 1 10:00 AM ISM Index Jan
Briefing Forecast 57.0
Market Expects 55.5
Prior 55.6

Feb 1 10:30 AM Crude Inventories 01/27
Briefing Forecast NA
Market Expects NA
Prior -2309K

[UpInArms]

43. 10:00 reports in:

10:03am 02/01/06 U.S. JAN. ISM EMPLOYMENT 51.3% VS 53.6% IN DEC.

10:03am 02/01/06 U.S. JAN. ISM NEW ORDERS 58.0% VS 59.1% IN DEC.

10:01am 02/01/06 U.S. JAN. ISM MANUFACTURING INDEX BELOW 55.4% CONSENSUS

10:01am 02/01/06 U.S. JAN. ISM MANUFACTURING INDEX 54.8% VS 55.6% IN DEC.

10:00am 02/01/06 U.S. DEC. PENDING HOME SALES INDEX DOWN 5.5% Y-O-Y

10:00am 02/01/06 U.S. PENDING HOME SALES FALL 3.0% IN DECEMBER

10:00am 02/01/06 U.S. Dec. construction spending rises 1% - Rex Nutting

10:00am 02/01/06 U.S. 2005 PRIVATE CONSTRUCTION SPENDING RISES 9.3%

10:00am 02/01/06 U.S. DEC. PENDING HOME SALES INDEX DOWN 5.5% Y-O-Y

10:00am 02/01/06 U.S. 2005 CONSTRUCTION SPENDING RISES 8.9%

10:00am 02/01/06 U.S. DEC. PENDING HOME SALES INDEX DOWN 3.0% TO 116.4

10:00am 02/01/06 U.S. NOV. CONSTRUCTION SPENDING REVISED TO 0.5% VS. 0.2%

10:00am 02/01/06 U.S. DEC. PUBLIC CONSTRUCTION SPENDING UP 0.7%

10:00am 02/01/06 U.S. DEC. RESIDENTIAL CONSTRUCTION SPENDING UP 1%

10:00am 02/01/06 U.S. DEC. PRIVATE CONSTRUCTION OUTLAYS UP 1.1%

10:00am 02/01/06 U.S. DEC. CONSTRUCTION SPENDING RISES 1%

[UpInArms]

44. U.S. pending home sales fall 3.0% in December

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.4172768634-859035020&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Pending U.S. home sales dropped 3.0% in December, the National Association of Realtors said Wednesday. The pending home sales index -- which measures signed contracts for existing homes -- fell to 116.4, down 5.5% from December 2004. David Lereah, chief economist for the trade group, said pending home sales may rise in the months ahead, following the rise in mortgage applications in recent weeks.

[UpInArms]

64. U.S. pending home sales index drops in December

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T154147Z_01_N01243327_RTRIDST_0_FINANCIAL-PENDING-HOMESALES-UPDATE-1.XML

WASHINGTON, Feb 1 (Reuters) - Pending sales of U.S. homes dropped in December to the lowest point in almost two years, extending a months-long slide as the housing market shows signs of sustained cooling, a trade group said on Wednesday.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in December, stood at 116.4, down 3.0 percent from November and 5.5 percent below a year ago.

December's level marked the lowest point for the index since February 2004, when it hit 111.6, the Realtors said. It also may indicate a decline in home sales for January and February.

November's index level was revised down to 120.0 from an originally reported 120.6.

...more...

[UpInArms]

45. U.S. Dec. construction spending rises 1%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.4170201505-859034974&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Spending on U.S. construction projects increased 1% in December, boosted by robust spending on homes, offices, stores and utilities, the Commerce Department estimated Wednesday. Outlays in November were revised higher to show a 0.5% gain rather than the 0.2% increase previously estimated. The seasonally adjusted figures were much stronger than the 0.2% gain expected by economists surveyed by MarketWatch. It was the fastest growth in construction spending in three months. For all of 2005, outlays increased 8.9%. In December, outlays for private projects rose 1.1%, including a 1% gain in residences. Spending on public-sector projects increased 0.7% in December.

[UpInArms]

50. Home Building revving up as sales are dropping off

Are they really attempting to relive the debacle of the 80s?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T150134Z_01_N01240176_RTRIDST_0_ECONOMY-CONSTRUCTION-URGENT.XML

WASHINGTON, Feb 1 (Reuters) - U.S. construction spending rose a strong 1 percent in December, closing out a record year on a surprisingly strong note as homebuilding activity bounced back from a weak November, a government report on Wednesday showed.

Construction spending increased to a seasonally adjusted annual rate of $1.161 trillion, an all-time high, from an upwardly revised $1.149 trillion in November, the Commerce Department said.

December's strength brought construction spending for the full year to a record $1.120 trillion, an 8.9 percent increase from 2004.

...more...

[EuroObserver]

60. "I can't hear you!"

[UpInArms]

47. U.S. Jan. ISM manufacturing index 54.8% vs 55.6% in Dec.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.4211241667-859035544&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Factory activity in the United States expanded at a slower pace in January, the Institute for Supply Management reported Wednesday. The ISM index fell to 54.8% in January from 55.6% in December. The decline was larger than expected. The consensus forecast of estimates collected by Marketwatch was for the index to slip to 55.4%. Readings above 50 indicate expansion. New orders fell to 58.0% in January from 59.1% in December. The employment index fell to 51.3% from 53.6%. The price index rose to 65.0% from 63.0%.

[UpInArms]

54. DOE Petroleum Inventories Report:

10:31am 02/01/06 U.S. CRUDE STKS UP 1.9 MLN BRLS LAST WK: ENERGY DEPT

10:31am 02/01/06 U.S. DISTILLATE STKS DOWN 200,000 BRLS: ENERGY DEPT

10:31am 02/01/06 U.S. GASOLINE STKS UP 4.2 MLN BRLS: ENERGY DEPT

[EuroObserver]

61. Does this include the so-called "strategic reserve"

...or only 'commercial' stock?

[UpInArms]

62. I do believe it does include the "strategic reserve" .... eom

[UpInArms]

56. API Petroleum Inventories Report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.4428980671-859037711&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude inventories climbed 5.9 million barrels for the week ended Jan. 27. The Energy Department had reported a rise of only 1.9 million. Motor gasoline inventories were up 3.7 million barrels, the API said, while distillate stocks fell by 883,000 barrels.

[UpInArms]

66. DaimlerChrysler U.S. January vehicle sales rise 5%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.4790754861-859041472&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- DaimlerChrysler AG (DCX) said Wednesday vehicle sales in the United States rose 5% in January compared with the year-ago period. DaimlerChrysler sales increased to 167,934 from 160,212. Chrysler Group sales, which consists of the Chrysler, Jeep and Dodge brands, rose 5% to 155,465 vehicles from 148,111 last year. Sales of Mercedes-Benz USA increased by 3% to 12,469.

11:23am 02/01/06 DAIMLERCHRYSLER: MERCEDES-BENZ USA JAN. SALES UP 3%

11:23am 02/01/06 DAIMLERCHRYSLER: CHRYSLER GROUP JAN. VEHICLE SALES UP 5%

11:22am 02/01/06 DAIMLERCHRYSLER JAN. VEHICLE SALES 167,934 VS 160,212

11:21am 02/01/06 DAIMLERCHRYSLER JAN. VEHICLE SALES UP 5% VS YEAR AGO

[UpInArms]

73. Porsche Jan sales up 48%

12:03pm 02/01/06 PORSCHE N.A. JAN. SALES UP 48%

12:04pm 02/01/06 PORSCHE N.A. JAN. SALES 3,232 VS 2,177 YEAR AGO

[UpInArms]

74. Ford Jan sales up 2%

12:06pm 02/01/06 FORD MOTOR: U.S. JAN. LINCOLN SALES UP 26.4%

12:06pm 02/01/06 FORD MOTOR: U.S. JAN. JAGUAR SALES DOWN 28.9% VS YEAR AGO

12:05pm 02/01/06 FORD MOTOR: U.S. JAN. MERCURY SALES DOWN 16.5% VS YEAR AGO

12:06pm 02/01/06 FORD MOTOR: U.S. JAN. VOLVO SALES DOWN 12.7% VS YEAR AGO

12:06pm 02/01/06 FORD MOTOR: U.S. JAN. LAND ROVER SALES UP 33.8% VS YEAR AGO

12:05pm 02/01/06 FORD MOTOR: U.S. JAN FORD BRAND SALES UP 3.5% VS YEAR AGO

12:01pm 02/01/06 FORD MOTOR JAN. U.S. CAR SALES UP 18% VS YEAR AGO

12:02pm 02/01/06 FORD MOTOR U.S. JAN. TRUCK SALES DOWN 7% VS YEAR AGO

12:01pm 02/01/06 FORD MOTOR JAN. U.S. SALES UP 2% VS YEAR AGO

[EuroObserver]

81. Jaguar and Volvo tanking: Time to sell these marques

to a genuine quality carbuilder?

[amandabeech]

103. Here in the U.S., Jag has a very bad quality reputation

that goes back many, many years. They are generally considered hobby cars. The electrical system is thought to be extremely problematic.

However, they are reputed to be extremely fun to drive!

Is the Jag quality reputation different in Europe?

[UpInArms]

90. Nissan Jan total car sales up 2.4%

12:57pm 02/01/06 Nissan North American Jan. sales fall 0.9% - Carolyn Pritchard

12:55pm 02/01/06 NISSAN N.A. JAN. U.S. SENTRA MODEL SALES UP 20% VS YR AGO

12:56pm 02/01/06 NISSAN N.A. JAN. U.S. ALTIMA MODEL SALES DOWN 2% VS YR AGO

12:56pm 02/01/06 NISSAN N.A. JAN. U.S. MAXIMA MODEL SALES DOWN 14.2%

12:54pm 02/01/06 NISSAN N.A. JAN. U.S. NISSAN BRAND SALES DOWN 0.1%

12:55pm 02/01/06 NISSAN N.A. JAN. U.S. INFINITI BRAND SALES DOWN 7.5%

12:53pm 02/01/06 NISSAN N.A. JAN. U.S. TOTAL CAR SALES UP 2.4% VS YEAR AGO

12:54pm 02/01/06 NISSAN N.A. JAN. U.S. TOTAL TRUCK SALES DOWN 4.2% VS YR AGO

12:52pm 02/01/06 NISSAN N.A. JAN. U.S. SALES DOWN 0.9% VS YEAR AGO

12:53pm 02/01/06 NISSAN N.A. JAN. U.S. SALES 75,891 VS 76,584

[UpInArms]

98. General Motors U.S. Jan. sales up 5.8%

2:06pm 02/01/06 GENERAL MOTORS U.S. JAN. BUICK SALES UP 8.4% VS YEAR AGO

2:07pm 02/01/06 GENERAL MOTORS U.S. JAN. CADILLAC SALES UP 33.4% VS YEAR AGO

2:04pm 02/01/06 GENERAL MOTORS U.S. JAN. CAR SALES UP 15% VS YEAR AGO

2:04pm 02/01/06 GENERAL MOTORS U.S. JAN. TRUCK SALES DOWN 0.5% VS YEAR AGO

2:03pm 02/01/06 GENERAL MOTORS U.S. JAN. UP 6% VS YEAR AGO

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.5889672801-859052099&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- General Motors Corp. (GM) said U.S. sales rose 5.8% in January, to 296,003 from 279,653. Car sales for the month increased by 14.6% while truck sales edged lower by 0.5%. January Cadillac sales added 4.7% while Hummer sales rocketed higher by 179.7%. Sales in the Buick division fell 1.3% year-over-year, the GMC division saw a 12.2% drop in sales, and Oldsmobile sales were down 98.6%. Chevrolet division sales slipped 0.2% for the month.

[UpInArms]

101. Suzuki U.S. Jan. sales up 33%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.5951911227-859052378&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Suzuki Motor Corp. (SZKMF) said Wednesday U.S. sales rose 33% in January, to 7,210 from 5,414, the best January sales in the automaker's history. Sales of the Grand Vitara soared 589% year-over-year, while Forenza sales rose 78%. Sales of the Verona were down 48% for the month, Suzuki said, and XL-7 sales fell by 39%.

[UpInArms]

102. Toyota Motor U.S. Jan. sales rise 14%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BA36837EC-D56A-45DC-B38A-5D35742D4196%7D&

SAN FRANCISCO (MarketWatch) -- Toyota Motor Corp. (TM) said Wednesday U.S. sales rose 14% in January, to 160,625 from 140,954. The Toyota division posted sales of 140,967, a 14.9% rise from 122,706 in the same month last year; while the Lexus division saw sales rise 7.7%, to 19,658 from 18,248.

[ozymandius]

7. Crude Oil Prices Fall for Second Day

SINGAPORE - Crude oil prices fell for the second session Wednesday after
OPEC ministers said the group had decided to hold production steady.

-cut-

U.S. President George W. Bush declared Tuesday that America must break its dependence on Mideast oil.

"America is addicted to oil which is often imported from unstable parts of the world," Bush said in his State of the Union speech.

OPEC's decision Tuesday had been widely expected after two days of informal meetings among the cartel's 11 members. Qatari oil minister Abdullah bin Hamad al-Attiyah said a cut in output would be discussed at the March meeting.

more...

[ozymandius]

8. Ready for $262/barrel oil?

DAVOS, Switzerland (FORTUNE) - Be afraid. Be very afraid.

That's the message from two of the world's most successful investors on the topic of high oil prices. One of them, Hermitage Capital's Bill Browder, has outlined six scenarios that could take oil up to a downright terrifying $262 a barrel.

-cut-

"U.S. power and influence has declined precipitously because of Iraq and the war on terror and that creates an incentive for anyone who wants to make trouble to go ahead and make it." As an example, Soros pointed to the regime in Iran, which is heading towards a confrontation with the West over its nuclear power program and doesn't show any signs of compromising. "Iran is on a collision course and I have a difficulty seeing how such a collision can be avoided," he says.

Another emboldened troublemaker is Russian president Vladimir Putin, Soros said, citing Putin's recent decision to briefly shut the supply of natural gas to Ukraine. The only bit of optimism Soros could offer was that the next 12 months would be most dangerous in terms of any price shocks, because beginning in 2007 he predicts new oil supplies will come online.

-cut-

More realistic -- and therefore more chilling -- would be the scenario where Iran declares an oil embargo a la OPEC in 1973, which Browder thinks could cause oil to double to $131 a barrel. Other outcomes include an embargo by Venezuelan strongman Hugo Chavez ($111 a barrel), civil war in Nigeria ($98 a barrel), unrest and violence in Algeria ($79 a barrel) and major attacks on infrastructure by the insurgency in Iraq ($88 a barrel).

more

[54anickel]

31. Oh how that one line sums up this entire mal-administration!

"U.S. power and influence has declined precipitously because of Iraq and the war on terror...

Bush has completely pissed away our "World Leader" standing in just a few short years. (though it feels like a freakin' eternity!) :grr:

[EuroObserver]

49. On Dimson's Advanced Energy Initiative

Dimson dixit: "We'll find a technological/economic fix":

http://www.whitehouse.gov/news/releases/2006/01/20060131-10.html

Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper, and more reliable alternative energy sources -- and we are on the threshold of incredible advances.

So tonight, I announce the Advanced Energy Initiative -- a 22-percent increase in clean-energy research -- at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy. (Applause.)

We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We'll also fund additional research in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years. (Applause.)

Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. (Applause.) By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past. (Applause.)

Environmental science theory comments, for example:

http://www.the-rude-awakening.com/RAissues/2006/Jan/RA013106.html

"The invention of the steam engine (a magical product of
human ingenuity) provoked the invention of other new
machines, and then of factories with machines, which
prompted the need for better indoor lighting, which
stimulated the use of petroleum, which produced brighter
light than candles (and was much easier to get than sperm
whales), which provoked the development of the oil
industry, whose oil was found to work even better in the
engines than coal did, which led to the massive
exploitation of a one-time endowment of concentrated stored
solar energy, which we have directed through pipes of
various kinds into an immense flow of entropy, which has
resulted in fantastic environmental degradation and human
habitat overshoot beyond carrying capacity."
...

"It is assumed now that human beings, prompted by the
market, will employ ingenuity to discover a substitute for
oil and gas, once the price starts to ramp up beyond the
'affordable' range. This assumption is apt to prove
fallacious because it ignores the fact that earth is a
closed system, while the laws of thermodynamics state that
energy can't be created out of nothing, only changed from
low entropy to high entropy, and that we have already
changed the half of our oil-endowment that was easiest to
get into dispersed carbon dioxide, which is now ratcheting
up global warming and climate change, which might well put
the industrial adventure out of business before human
ingenuity can come up with a substitute for oil. The solar
energy stored for millions of years in oil will now be
expressed in higher temperatures, more severe storms,
rising sea levels, and harsher conditions for the human
species, which, despite its exosomatic technological
achievements, remains a part of nature and subject to its
laws."

Ref. James Kunstler's "The Long Emergency: Surviving the
Converging Catastrophes of the 21st Century."

[EuroObserver]

57. Investors press top 2,000 firms on climate change

LONDON (Reuters) - Investors with some $30 trillion (17 trillion pounds) of assets have written to 1,933 of the world's biggest companies demanding disclosure on their climate change stance, the Carbon Disclosure Project (CDP) said on Wednesday.

The world's biggest shareholders want to know how prepared companies are for the effects of climate change and for hardening climate change policy as fears grow for impacts on investments.

The CDP's fourth such annual request is on behalf of a swelling investor group, up from funds with $20 trillion last year and $10 trillion the year before, and is directed at a growing company target list, up from 500 last year.

"There are business risks and opportunities (from climate change) that have implications for the value of investments in corporations worldwide," said Paul Dickinson, CDP project coordinator.

/more...

[hatrack]

86. Kunstler is flubbing part of the 2nd law here

The Earth is NOT a closed system. Anybody remember what you call that big bright ball that rises over the trees each morning?

Other than that, he's pretty much on target here, I think.

[EuroObserver]

92. Aha! I wondered when someone would pick that up!

You're dead right, this planet is not a closed system.

So: Let's concentrate our efforts on harnessing some of that huge amount of solar radiation that feeds life every day, no?

If we pay attention to thermodynamic principles (ie. avoid continued overheating), then, no matter how inefficient our technology is at first, we can only gain in the mid-to-long term.

...And, by "we", I mean all humanity; indeed, potentially, all planetary life.

[EuroObserver]

93. More on the latest state of Iran-.related play (DU) here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2078482

and here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x188240

Stressing the indispensability of American global leadership is standard fare in State of the Union addresses, and George Bush's speech last night was no exception. But a string of foreign policy setbacks has highlighted growing flaws in Washington's long cherished assumption of international primacy.

<long cut full of concrete examples>

In his book The Opportunity, Richard Haass suggested that US over-reaching, as seen in Iraq and in Mr Bush's grandiose second term "vision" to set the world free, was partly responsible for the trend towards rejection of American leadership. "It is neither desirable nor practical to make democracy promotion a foreign policy doctrine," Mr Haass, a former US government official, said. "Too many pressing threats in which the lives of millions hang in the balance (threats such as nuclear proliferation and genocide) will not be solved by the emergence of democracy."

But he argued that US primacy was also increasingly vulnerable to non-military challenges that were beyond the control of any administration. The US should pursue more collaborative, integrated policies - or risk rising "passive resistance" internationally. "For the immediate future, non-cooperation is likely to be a more frequent and bigger problem for US foreign policy than direct opposition."

[EuroObserver]

12. India eyes $1 bln investment in Canadian oil sands

CALGARY, Alberta, Jan 31 (Reuters) - India has jumped into the intense competition for Canadian oil sands assets with plans to invest $1 billion over the next 12 months, a top Indian energy official said on Tuesday.

India, which has mounted a high-profile hunt for foreign reserves to help power its growing economy, is not worried its plans will put it head-to-head with longtime rival China in bidding for Canadian oil sands assets, said M.S. Srinivasan, secretary of India's Ministry of Petroleum & Natural Gas.
...
Alberta's oil sands are already the target of an estimated $100 billion of investments in new projects and expansions of those that are already producing. Current output is more than one million barrels a day, or about 40 percent of total Canadian crude production. The resources rival Saudi Arabia's conventional oil reserves in size, but are far more expensive to develop and refine into petroleum products like gasoline. With surging oil prices and tight energy supplies making headlines in the United States, oil sands have over the past year taken center stage amid the quest for secure reserves.

Oil sands are either mined in open pits, as is done at projects run by Syncrude Canada Ltd., Suncor Energy Inc. (SU.TO: Quote, Profile, Research) and Shell Canada (SHC.TO: Quote, Profile, Research), or produced by thermal means. That involves injecting steam into the ground to loosen the gooey crude so it can be pumped to the surface in wells.
...
Canada's industry estimates production of tar-like bitumen and synthetic crude processed from the unconventional resources will nearly triple to 2.7 million barrels a day by 2015, as a host of projects start up.

/more...

[EuroObserver]

13. Shell, Mitsubishi, Mitsui may cede some of Sakhalin-2 gasfield to Gazprom

TOKYO, Feb 1 (Reuters) - Japan's Mitsubishi Corp. and Mitsui & Co. may have to give up some of their stakes in Russia's huge Sakhalin gas project as part of project leader Royal Dutch Shell's (RDSa.L: Quote, Profile, Research) plan to give a share to Russian gas giant Gazprom.

Mitsubishi (8058.T: Quote, Profile, Research) said on Wednesday it and Mitsui (8031.T: Quote, Profile, Research), would have to give up part of their holdings in Sakhalin-2 if Gazprom (GAZP.RTS: Quote, Profile, Research) decided to take the 25 percent of the project offered under a bilateral deal with Shell signed in July 2005.

Shell holds 55 percent of Sakhalin-2, the world's largest liquefied natural gas (LNG) project. Mitsui holds 25 percent and Mitsubishi 20 percent.

"Shell is still negotiating over details of the deal. But when the details are finalised to let Gazprom join the project, our company may have to release up to 4-5 percent because taking the 25 percent from just Shell would be too much," a Mitsubishi spokesman said.

Under the July deal, Shell was to give Gazprom a share in Sakhalin-2, one of Shell's most valuable gas and oil assets, in return for an interest in Gazprom's West Siberian Zapolyarnoye field, which produces 100 billion cubic metres of gas a year.

/more...

[UpInArms]

21. Crude gains as Iran concerns persist

http://www.marketwatch.com/news/story.asp?guid=%7B02EBE6C5%2D97D8%2D40CD%2D87F5%2DA832DF4D9185%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Crude futures rose early Wednesday, trading back over $68 amid continued concerns about tensions between western nations and Iran relating to its nuclear program.

On the bearish side, traders were looking to data expected to show builds in inventories of petroleum products in the latest week. There were also reports that production is resuming at Nigerian oilfields that were recently attacked.

Crude for March delivery was last trading up 24 cents at $68.16 a barrel, after earlier dipping to as low as $67.33. On Tuesday, the contract closed lower after the Organization of the Petroleum Exporting Countries left output quotas unchanged.

In his State of the Union address late Tuesday, U.S. President George Bush said the world should not allow Iran to acquire nuclear weapons.

From Tehran, Iranian President Mahmoud Ahmadinejad said his country will not submit to "bullying" over its nuclear program, the BBC reported.

...more...

[54anickel]

33. New Money, New Ideas

http://www.nytimes.com/2006/02/01/business/worldbusiness/01petrodollars.html?_r=2&oref=slogin&oref=slogin

snip>

Once again, oil producers, particularly in the Arabian peninsula, are experiencing a boom. And just as they did in the 1970's and early 1980's, their coffers are spilling over with cash. Last time around, there was an abundance of outrageous projects, and judging from the extravagance on display in Dubai, lavish projects are finding financing once again.

But this time around, the region's main oil producers, like Saudi Arabia, Kuwait, Qatar and the United Arab Emirates, have gotten wiser. Since the boom started three years ago, they have paid down their debt, saved more money than ever before and created more jobs in the private sector. And they are trying to diversify their economies away from oil and its increasingly volatile cycles.

"People are asking where are all the petrodollars and why we have not seen anything like the spending of the 70's and 80's," said Bader al-Saad, who runs the Kuwait Investment Authority.

"What has changed is the economic and political reforms in the region, the fall of the barriers for investors, and the improvement of the banking and financial system," he said. "If we hadn't learned from our previous mistake, this would have been a big stupidity."

snip>

In Abu Dhabi, the capital of the United Arab Emirates, the government has an investment arm that some analysts say manages more than $250 billion. Kuwait's investment arm, meantime, gets 10 percent of that country's oil sales and controls a fund estimated at well over $100 billion. Both these investment arms have been in talks to buy a part of the Industrial and Commercial Bank of China.

more...

[UpInArms]

46. March Crude @ $68.05 bbl - March NatGas @ $9.61 mln btus

10:03am 02/01/06 MARCH CRUDE UP 13C AT $68.05/BRL AHEAD OF U.S. SUPPLY DATA

10:03am 02/01/06 MARCH NATURAL GAS CLIMBS 29.4C, OR 3.2%, TO $9.61/MLN BTUS

[UpInArms]

69. March Crude @ $68.10 bbl

11:42am 02/01/06 MARCH CRUDE TURNS HIGHER, UP 18C AT $68.10 AFTER $67.40 LOW

[UpInArms]

76. March Crude @ $68.65 bbl - March NatGas @ $9.75 mln btus

12:18pm 02/01/06 MARCH CRUDE PEAKS AT $68.90/BRL, LAST UP 73C AT $68.65

12:18pm 02/01/06 MARCH NATURAL GAS UP 4.7% AT 1-MO HIGH OF $9.75/MLN BTUS

(how do they know it "peaked" - is the day over?)

[UpInArms]

100. March Crude @ $67.40 bbl - March NatGas @ $8.92 mln btus

2:19pm 02/01/06 MARCH CRUDE FALLS BACK, DOWN 52C AT $67.40/BRL

2:19pm 02/01/06 MARCH NATURAL GAS DROPS 4.4% TO $8.92/MLN BTUS

[UpInArms]

114. March Crude closes @ $66.56 bbl - March NatGas @ $8.723 mln btus

3:07pm 02/01/06 MARCH CRUDE FALLS 2%, ENDS AT $66.56/BRL AFTER $69 2-WK HIGH

3:07pm 02/01/06 MARCH NATURAL GAS DROPS 6.4% TO END AT $8.723/MLN BTUS

[UpInArms]

18. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX

Last trade 89.20 Change +0.30 (+0.34%)

Dollar Reverses Losses After Fed Decision

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/6452_dollar_reverses_losses_after_fed.html

The dollar sold off significant today ahead of the Federal Reserve’s interest rate decision but recuperated nearly of its losses after the announcement. As expected, the Fed delivered its thirteenth consecutive 25bp interest rate hike which brought the target for the federal funds rate to 4.50 percent. Even though the Fed dropped the phrase “measured,” from the statement, they kept the rest of the sentence which said that “further policy firming may be needed.” They were also optimistic on growth, noting that “Although recent economic data have been uneven, the expansion in economic activity appears solid.” On the inflation front, even though “core inflation has stayed relatively low in recent months…. increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures,” which is another hawkish line. Therefore it is irrefutable that at this juncture, the Fed is definitely eyeing a March rate hike. Also with over 80 percent probability for a rate change already priced into the market, they probably did not want to rock the boat without seeing more evidence of slowing. With 2 full months until the next meeting, the Fed gave themselves enough leeway by saying that “they will respond to changes in economic prospects as needed.” Dollar bulls now have their validation to move pump the dollar even higher if the rest of the data released this week come in positive. Consumer confidence increased from 105.0 to 106.3 in the month of January. Manufacturing activity in the Chicago region (as measured by the PMI) fell from 60.8 to 58.5. The Employment cost index for the fourth quarter remained unchanged at 0.8 percent. There is a lot of data still due for release this week, so expect more exciting price action.

...more...

[EuroObserver]

42. On Statistical Deceptions

http://www.isecureonline.com/Reports/RCH/ERCHG106/

STATISTICAL DECEPTION #1: THE ANNUAL AMPLIFICATION

Instead of reporting profits, GDP, productivity and other rates of growth quarter by quarter and quarter over quarter like corporations do, the government "annualizes" these numbers. That means that instead of announcing growth (or lack of growth) as a ratio of one fiscal quarter relative to the previous quarter - or relative to the same quarter from the previous year - the Fed reports an extrapolation of every quarter's growth as though it were to inevitably continue at that same rate for a whole calendar year.

For instance: If in Q2 2005, total profits increase 2% over Q1, this figure gets multiplied by a factor of four (to represent the four quarters in a fiscal year), and reported as an 8% rate of growth. This would only be accurate if that same rate of growth remained constant over the next calendar year. But these rates never remain constant, so this kind of reporting is terribly misleading - it projects a far rosier picture than what actually exists, especially when compared with other nations.

The United States is the ONLY country that reports its growth in this deceptive manner.

STATISTICAL DECEPTION #2: THE PRODUCTIVITY PREVARICATION

A recent Federal Reserve press release began by trumpeting our economy's "robust underlying growth in productivity." But there are many ways in which numbers can paint a picture of healthy growth - or obscure evidence of a lack of growth. And the popular misunderstanding of the nebulous concept of "productivity" is vital to the Fed's ability to misrepresent our economy to us.

Here's one example: By using a trick of accounting called hedonic pricing, the U.S. government has for years been able to report stellar growth in the hard-to-quantify "productivity" realm. It's a complex concept, but it goes a little like this: The value of any given thing is more a measure of its theoretical capabilities than its actual cost.

Computers are a great example of this. Say a company bought a computer in 1995 for $1,000. Then in 1998, it replaced it with a new computer with twice the memory for only $800. Based on the hedonic method, that computer with twice the capabilities as the one the company paid $1,000 for is twice as valuable - so they calculate its value to the nation's bottom line at $2,000, instead of the $800 actually paid for it.

Neat trick, huh? With one button push on a calculator, the Fed has added $1,200 to the GDP - even though no one paid it and no one received it.

The net result: The GDP is skewed higher, but without any new creation of employment. That MUST mean the same number of people is producing more, right? Voila! An instant increase in productivity on the books.

Supposedly, hedonic pricing of computers was abandoned by the government last year. But the Fed still use this ridiculously exaggerated method to calculate fictional productivity based on all sorts of business purchases. They say the effects of these changes are marginal...

But since productivity growth numbers still seem artificially high in comparison to actual growth in American industry, I have to wonder - especially since businesses' capital investment in newer, faster machines and more modern factories (the things that should increase productivity) has stalled to a virtual halt.

All told, the United States has invested in the mechanisms of real productivity growth at a dismal rate of just over 0.3% per year over the last eight years. Yet according to the latest Fed estimates (April 28), the U.S. GDP is rising nearly 3.8% per year!

In other words, the true numbers say productivity shouldn't be rising, but the government says it is. Something's rotten in Greenspanland...

STATISTICAL DECEPTION #3: THE PROFIT PERJURY

Profit is a simple thing to understand - it's the revenue that's left over for companies after all business-related expenses are paid. Theoretically, anyway. But the calculating of these profits by our federal government is by no means as simple a task as it would seem. The reason is that one of the most important sources of profit in the U.S. economy is net capital investment: investments made by businesses out of their own profits, without incurring any meaningful expenses.

This is measured as pure profit and trumpeted by the Fed as growth - without regard to the eventual depreciation on those investments, which begins to accrue much later. In other words, the Fed knows that the "profit" of net capital investment by businesses does not come without eventual expense (depreciation), yet it record its as pure profit to help keep GDP estimates as high as possible.

What happens when all the depreciation comes into the mix? We'll see - it'll be happening on a massive scale soon...

STATISTICAL DECEPTION #4: THE LABOR LIE

The Fed (along with most of the bit-in-mouth mainstream media) has been trumpeting the relatively low unemployment numbers for some time now. However, the picture isn't as rosy as the numbers make it seem. Here's what I mean: Not too long ago, there were only two classifications of workers - employed and unemployed. A simple ratio of these two numbers yielded the "unemployment rate." But that's not the case today...

Nowadays, there's a third classification called "discouraged worker" (it should be called "disinterested worker"). What this refers to is any unemployed worker who isn't seeking a job. And with today's aggressive welfare and entitlement programs footing the bills and creating millions of career recipients, that's a huge and ever-increasing number of people. That's right: Even though they aren't working, millions of "discouraged workers" aren't counted as unemployed.

Beyond this, the Fed also uses a statistical model based on jobs it assumes aren't being counted. The theory is that hundreds of new businesses are started each day - businesses whose employees are too new to have been added to the official employment figures. To "fix" this, the Fed calculates a number of theoretical jobs it figures MUST have been created. What drives this figure? In large part, it's the estimated GDP, which, as I've just explained, is hugely skewed toward nonexistent growth.

Consider: Of 274,000 jobs the government claimed were created in April 2005, a full 257,000 came from this formula for estimating theoretical jobs. In other words,94% of reported new jobs may not even exist.

Further still is the quality of those jobs being created. There's been a dramatic switch in employment. Since 1997, nearly 3 million high-paying - not to mention highly productive - manufacturing jobs have disappeared. Meanwhile, they've been replaced with around 2 million low-paying (and low-productive) health service jobs.

[UpInArms]

19. In New Orleans, some felt neglected in State of the Union address

http://www.katc.com/Global/story.asp?S=4438446

NEW ORLEANS -- Arms out, palms up and eyebrows raised, Korean War veteran Tom Short watched President Bush step down from the podium following the State of the Union address, then asked with a raised voice, "Did I miss something?"

Short, a Republican who generally supports the president, had expected Bush to highlight the need to help rebuild New Orleans' flood defenses and economy.

Instead, Bush made only a passing reference near the end of his hour-long speech to the money that had been appropriated for the Gulf Coast's recovery and the teams of contractors cleaning up debris.

<snip>

She was perturbed that Bush spent a good third of his speech discussing the war in Iraq, which she opposes.

"Maybe some of the money that we're spending over there could be spent here rebuilding New Orleans," she said.

Attorney Todd Hebert, 38, hollered sarcastically as Bush opened with Iraq and stayed on the subject for about 20 minutes.

"Of course we're opening with Iraq because it's so much more important than New Orleans, or our own country," Hebert said. "Why are we still talking about this and not talking about the Gulf Coast?"

...more...

[UpInArms]

36. State of the Union? Skittish and agitated

http://www2.whdh.com:80/news/articles/world/BO13657/

The state of the union is fretful.

President Bush acknowledged the public's agitated state Tuesday night when he gave voice to growing concerns about the course of the nation he has led for five years. His credibility no longer the asset it once was, the president begged Americans' indulgence for another chance to fix things.

There is no shortage: the Iraq war, global terrorism, a nuclear Iran, a stingy global economy, skyrocketing health care costs, troubled U.S. schools, rising fuel costs, looming budget deficits and government corruption. All received presidential attention Tuesday night.

<snip>

The problem for Bush is that few of these troubles are new. He's had five years to ease people's pain.

Nearly 46 million Americans have no health insurance, up nearly a million in the last year. Health care costs are increasing three or four times the rate of inflation.

<snip>

Osama bin Laden has not been caught.

Weapons of mass destruction were not found in Iraq.

...more...

[UpInArms]

38. Responses to SOTU: Received like a dead puppy at a dog show

http://hosted.ap.org/dynamic/stories/S/STATE_OF_UNION_REACTION?SITE=OHCOL&SECTION=HOME

excerpts:

MORAINE, Ohio (AP) - The president's description of the economy as "healthy, and vigorous, and growing" didn't sit well with one auto worker in southwest Ohio, where the financial troubles of General Motors Corp. and parts supplier Delphi Corp. have been keenly felt.

<snip>

COSTA MESA, Calif. (AP) - Dave Brooks, 61, a retired police officer, watched as an "unhappy Republican."

<snip>

RICHMOND, Va. (AP) - Bush did nothing to calm the fears of Anne Jowaisas, a 38-year-old nanny who identified herself as an independent and voted for John Kerry in 2004.

<snip>

ALBUQUERQUE, N.M. (AP) - As a retired accountant and a World War II veteran, Joe Benavidez has two big worries on his mind: the national budget and the war in Iraq.

"The nation is going broke. We get into debt every day with this war," said Benavidez, 84. "Veterans are not going to get what they want or what they need. They're going to cut veteran benefits. They're going to cut welfare, lots of things."

<snip>

Stephen Noriega managed to watch during a rare spare moment between classes and his full-time job as a hotel front desk clerk. He was concerned when the president discussed cutting more than 130 programs from the budget to save $14 billion.

...more...

[UpInArms]

78. Decoding the State of the Union (Great Reading!)

http://www.thenation.com/blogs/edcut?pid=55081

Never misunderestimate George W. Bush. Here's a President who's gutted the Treasury, eroded the environment, divided our society, ruined our reputation, frayed our military, undermined our security, inspired our enemies and overall weakened America. But there he stood tonight and delivered a State of the Union speech disconnected from the reality we are living in.

As Tom Engelhardt has observed, the way gunmen once reached for their guns, this Administration reaches for its dictionaries to find words to deceive and distract people.

<snip>

Bipartisanship, n.
1. When conservative Republicans work with moderate Republicans to pass legislation that Democrats hate.
2. Another name for date rape .

Compassionate Conservatism, n.
1. Republican pre-election concern for the disadvantaged .
2. (a) I got mine; (b) I got yours too .
3. Poignant concern for the very wealthy .

Democracy, n.
1. A product so extensively exported that the domestic supply is depleted.
2. When they vote for us; see TYRANNY: When they vote for someone else .

Ending Tyranny, catchphr.
1. Bombing followed by military occupation .

Energy Independence, n.
1. The Yucca Mountain renovation program .
2. The Caribou witness relocation program .

Freedom, n.
1. God-given right of every American to agree with Bush and his policies .
2. What Arabs want but can't achieve on their own without Western military intervention; it bears a striking resemblance to chaos .

Free Markets, n.
Halliburton no-bid contracts at taxpayer expense .

...more...

[UpInArms]

108. SOTU Keywords: 'rage,' 'enemies,' 'battlefield,' and 'hatred'

http://english.pravda.ru/mailbox/22/101/399/16829_Bush.html

excerpt:

The key elements of President Putin's discourse on Tuesday morning were respect for international law, international relations based on a non-discriminatory basis, honouring the right of the integrity of fellow members of the international community, and an internal policy based on responsibility, pragmatism and competence.

Some key words from the State of the Union adress by George Bush on Tuesday evening are "rage", "enemies", "battlefield", "hatred", "fear", five key words which ably summarise the policy of the Bush regime.

One might expect a President of the United States of America to focus his State of the Union speech on...the state of the union. Not so Bush, who took just a few seconds to launch into a misguided discourse about how important the USA's "leadership" in the international community is to defend the nation.

By stating this, George Bush pits his country against, and not with, the international community because this community is based upon the notion of brotherly relations as equals, nobody asked for a bullying Big Brother to "lead" them.

Not surprisingly, practically the first statement in this speech is September 11th, 2001. Despite this outrage against humanity, there is no mention of the thousands of innocent civilians in other countries murdered by the armed forces of which George Bush is Commander-in-Chief, no mention of the targeting of civilian infra-structures with his military hardware, no mention of the widespread practice of torture, the concentration camps, the disrespect for international law.

...more...

Ah, yes. The responses from the rest of the world are equally unimpressed.

[UpInArms]

23. JetBlue swings to loss on fuel prices

http://www.marketwatch.com/news/story.asp?guid=%7BC90EC844%2DE4C4%2D4AFA%2D8A85%2D7DDF8570B3EB%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- JetBlue Airways Corp. on Wednesday posted a fourth-quarter loss - its first as a public company - hurt by high fuel prices and the 2005 hurricane season.

The low-cost carrier also forecast a loss for the first quarter and the year.

Shares were down 8% to $12 in premarket trading on Instinet.

The New York City airline posted a loss of $42.4 million, or 25 cents a share, compared with net income of $1.5 million, or 1 cent a share, a year earlier.

The latest quarter includes $13 million in charges consisting of $6.9 million in noncash stock-based compensation for accelerated vesting of employee stock options and a $6.1 million charge for development costs related to a maintenance and inventory tracking system that won't be used.

<snip>

"We are very disappointed in our performance this quarter as we continued to feel the effects of record-high fuel prices and a tough revenue environment, compounded by the impact of Hurricane Wilma and the residual effects of Hurricanes Katrina and Rita," said David Neeleman, JetBlue's chairman and chief executive.

...more...

[UpInArms]

24. U.S. mortgage applications decrease last week-MBA

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T115903Z_01_NAT001983_RTRIDST_0_ECONOMY-MORTGAGES-URGENT.XML

NEW YORK, Feb 1 (Reuters) - U.S. mortgage applications fell for the first time in four weeks led by a decline in home purchase loans, as interest rates rose for the first time since November, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Jan. 27 decreased 5.1 percent to 626.8 from the previous week's 660.5.

The fall was most pronounced in loans to buy homes. The group's seasonally adjusted purchase mortgage index declined 8.0 percent to 435.7 from the previous week's 473.7. The index is considered a timely gauge on U.S. home sales.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.20 percent, up 0.16 percentage point from the previous week's 6.04 percent, marking its first increase in eight weeks. Rates were at their highest levels since the week ended Dec. 23.

...more...

[UpInArms]

25. Former Wal-Mart executive admits he stole cash, more

http://www.thenewstribune.com/business/story/5497075p-4955812c.htmlhttp://www.thenewstribune.com/business/story/5497075p-4955812c.html

A former Wal-Mart Stores Inc. vice chairman who was a protégé of founder Sam Walton pleaded guilty to fraud and tax charges Tuesday, admitting he stole money, gift cards and merchandise from the world’s largest retailer.

Tom Coughlin, 57, pleaded guilty to five counts of wire fraud and one count of filing a false tax return. The charges carry a maximum penalty of 28 years in prison and a $1.35 million penalty, but prosecutors have likely recommended a reduced sentence as part of a plea bargain.

[UpInArms]

26. Prosecutor: Enron Trial Is About Lies

http://abcnews.go.com/Business/wireStory?id=1560965&CMP=OTC-RSSFeeds0312&ad=true

HOUSTON - The blockbuster criminal trial of former Enron Corp. chiefs Kenneth Lay and Jeffrey Skilling is about lies, not numbers, a federal prosecutor told jurors Tuesday, launching the much-awaited case against the scandal-ridden company's former corporate titans.

"This is a simple case. It is not about accounting. It is about lies and choices," prosecutor John Hueston told jurors in his opening statement.

He said Lay and Skilling assured investors that all was well despite crushing debt and chaotic finances propped up by fragile structures designed to hide liabilities, and maintain Enron's well-polished image of success.

"They chose to lie," Hueston said.

<snip>

"The evidence will show he was told of the equivalent of a ticking time bomb," Hueston said, referring to a celebrated memo from former Enron executive Sherron Watkins warning that the company could "implode in a wave of accounting scandals" if fragile accounting tricks designed to hide debt were revealed publicly.

Yet Lay assured employees and investors "that there are no problems, there are no shoes to drop."

...more...

[UpInArms]

119. Enron's Koenig Contradicts One of Lay's Defenses

http://www.bloomberg.com/apps/news?pid=10000087&sid=a96SW5Wk9VAs&refer=top_world_news

Feb. 1 (Bloomberg) -- A former Enron Corp. official testified that ex-chairman Kenneth Lay was ``highly involved'' in the company's daily management, even after he stepped down as chief executive, contradicting part of Lay's defense.

Mark Koenig, Enron's former head of investor relations, testified as the first prosecution witness in the fraud trial of Lay and former chief executive Jeffrey Skilling. The two men are accused of orchestrating the fraud that forced the seventh- largest U.S. company by sales into bankruptcy in December 2001.

<snip>

Company officials learned just days before Enron was scheduled to publish its fourth quarter 1999 financial statements that earnings were likely to be 30 cents a share, below the 31 cents a share that had been forecast, Koenig said.

Koenig said he alerted former Enron Chief Accounting Officer Richard Causey that the company might miss its forecast. Causey reported to Skilling, he said.

``Mr. Skilling had to approve anything that went into the earnings release,'' said Koenig, who joined Enron in 1985, according to court papers.

Koenig said the day before the earnings report was set to be publicly released, he saw a draft that said the company would earn 31 cents per share.

``Was that wrong?'' asked Kathryn Ruemmler, a federal prosecutor. ``That's wrong,'' Koenig replied. ``The results of the operation of the company for the quarter were 30 cents, not 31 cents.''

...more...

[UpInArms]

120. Witness: Enron Execs Heavily Involved in Co.

http://abcnews.go.com/Business/print?id=1565453

HOUSTON Feb 1, 2006 — Enron Corp.'s former chief contact for investors described company founder Kenneth Lay and former CEO Jeffrey Skilling on Wednesday as heavily involved in running the company, which collapsed in scandal in December 2001.

In the first day of testimony in Lay and Skilling's fraud and conspiracy trial, Mark Koenig said Enron's stock price was "very important" to his former bosses. He also said both disliked Wall Street analysts who weren't bullish on the stock a rarity in Enron's high-flying years before the company crashed, leaving thousands jobless and wiping out billions of dollars from investors.

<snip>

Prosecutor Kathryn Ruemmler asked Koenig why shareholders should know Enron's true financial condition.

Koenig replied, "Their investment is at stake."

Koenig, 50, a native of Omaha, Neb., pleaded guilty in August 2004 to aiding and abetting securities fraud, saying he knew Enron masked losses in a highly touted retail energy unit that never earned a profit by folding it into the division that included the company's trading unit.

He also admitted helping mislead analysts about profits in Enron's money-losing broadband unit. Both units went bankrupt along with the parent company.

...more...

[UpInArms]

27. Honeywell Investigates Security Breach - 19,000 people compromised

http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2006/01/31/financial/f160809S43.DTL&type=business

Honeywell International is offering credit monitoring and identity theft insurance to approximately 19,000 current and former employees whose personal information — including Social Security numbers and bank account information — was posted on an Internet Web site.

The company notified employees about the breach within a day of learning of it on Jan. 20, according to spokesman Robert C. Ferris.

"The company immediately contacted the relevant service provider, had the page removed from the Internet and is continuously monitoring the Internet to ensure that the Web page and any copies of it remain taken down," said Ferris.

He said the company was working with federal and state investigators to determine who posted the data. Ferris said he didn't know whether the posting was the work of a disgruntled employee or resulted from an administrative error or other cause.

...more...

[UpInArms]

30. Ameriprise Notifies Clients of Data Theft - 226,000 people compromised

http://abcnews.go.com/Business/wireStory?id=1542524&CMP=OTC-RSSFeeds0312

MINNEAPOLIS Jan 25, 2006 — Ameriprise Financial Inc. said Wednesday it has notified about 226,000 people that their names and other personal data were stored on a laptop computer that was stolen from an employee's vehicle.

Ameriprise said it has alerted 68,000 current and former financial advisers whose names and Social Security numbers were also stored on the same computer. About 158,000 clients had only their names and internal account numbers exposed. The company says it has more than 2 million customers and about 10,500 current financial advisers.

Minneapolis-based Ameriprise said it had received no reports that the data lost in the theft had been used improperly. Ameriprise is the name of the former American Express Financial Advisors division, which New York-based American Express Co. spun off last fall.

...more...

[UpInArms]

71. Newspapers accidentally release 240,000 customers' financial data

http://www.azcentral.com/business/articles/0201NewspaperCreditCards01-ON.html

BOSTON - The Boston Globe and the Worcester Telegram & Gazette said slips containing the names and credit card numbers of as many as 240,000 subscribers of both newspapers were accidentally delivered with bundles of papers last weekend in Worcester.

Officials of the newspapers, both owned by the New York Times Co., said Tuesday they were notifying customers of the mistake.

"We deeply value the trust our subscribers place in us and we are working diligently to remedy this unfortunate situation," said Richard H. Gilman, publisher of The Boston Globe, in a written statement. "Immediate steps have been taken internally at the Globe and Telegram & Gazette to increase security around credit card reporting."

The Telegram & Gazette said the slips also contained routing information for 1,100 of its customers who pay by check.

The financial data was on the back side of paper that had inadvertently been recycled and used for routing slips in 9,000 bundles of the Sunday Telegram & Gazette distributed to retailers and newspaper carriers, the newspapers said in a written statement.

...more...

[UpInArms]

28. Treasurys lower ahead of 30-year bond sale plan details

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.3590758681-859029441&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Long-term Treasurys were under pressure early Wednesday, sending yields a bit higher, as investors lightened positions ahead of this afternoon's Treasury Department quarterly refunding announcement. The benchmark 10-year Treasury note was down 4/32 at 99-23/32 with a yield ($TNX) of 4.537%. The Treasury Department at 1 p.m. will release details of its planned sale of 30-year bonds this quarter. The 30-year instrument was retired in 2001, but is being brought back partly to fund retirement pensions. The department also will reveal the size of planned sales of 3-year and 10-year notes. At 10 a.m. the market will view the December construction spending report and the Institute for Supply Management survey for January.

Isn't it wonderful that our grandchildren and their children will be paying for the Iraq war? :sarcasm:

[UpInArms]

34. U.S. to offer $48 billion in Treasury securities next week

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.3753985185-859030707&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The U.S. Treasury is offering $48 billion in securities to refund debt and raise new cash, the department said Wednesday. The government will auction $21 billion in 3-year notes on Feb. 7, $13 billion in 10-year notes on Feb. 8 and $14 billion in 30-year bonds on Feb. 9. Separately, the Treasury said bond market participants should be prepared for possible delays in future auctions if Congress doesn't promptly raise the federal debt ceiling.

9:00am 02/01/06 U.S. TO AUCTION $14 BILLION IN 30-YEAR TREASURY BONDS FEB. 9

9:00am 02/01/06 U.S. TO AUCTION $13 BILLION IN 10-YEAR TREASURY NOTES FEB. 8

9:00am 02/01/06 U.S. TO AUCTION $21 BILLION IN 3-YEAR TREASURY NOTES FEB. 7

9:00am 02/01/06 FUTURE AUCTIONS MAY BE DELAYED WITHOUT NEW DEBT CEILING

9:00am 02/01/06 U.S. TO OFFER $48 BILLION IN TREASURY SECURITIES NEXT WEEK


The estimated population of the United States is 298,407,557
so each citizen's share of this debt is $27,448.64.

The National Debt has continued to increase an average of
$2.08 billion per day since September 30, 2005

[UpInArms]

35. Federal borrowing raised to record level

http://www.cnn.com/2006/POLITICS/01/30/treasuryborrowing.ap/

WASHINGTON (AP) -- The government expects to borrow a record $188 billion in the January-March quarter, even more than it anticipated three months ago, the Treasury Department announced Monday.

The total will surpass the old mark of $146 billion set in the first quarter of 2004, a year in which the federal budget deficit hit an all-time high in dollar terms of $413 billion.

After declining last year to $319 billion, this year's deficit is expected to reach $400 billion, according to the Bush administration, which has said part of that increase will reflect higher spending to rebuild New Orleans and other hurricane-damaged areas of the Gulf Coast.

The Treasury Department's new estimate of the amount it will need to borrow in the current quarter surpasses the $171 billion estimate made in November.

<snip>

The administration contends the tax cuts helped to get the country out of the 2001 recession and must be made permanent so economic growth will not be slowed in the future.

...more...

[UpInArms]

82. Bush's out of control budgets

http://www.dailykos.com/storyonly/2006/1/30/143420/259

The arch-conservative Heritage Foundation take a look at the budget and doesn't like what it sees:

The Congressional Budget Office (CBO) projects a balanced budget by 2012. A number of CBO's assumptions underlying this projection are, to say the least, problematic. For example, CBO's projections assume that all of the President's 2001 and 2003 tax cuts, as well as all other temporary tax cuts, are allowed to expire and that the Alternative Minimum Tax is not fixed before it digs further into middle-class incomes. CBO is also required by law to assume that there will be no more appropriations for the conflicts in Iraq and Afghanistan and for Gulf Coast reconstruction; that the pending reconciliation budget will have no effects; and that discretionary spending will not grow at all, in inflation-adjusted terms. With all these caveats in place, CBO's budget baseline is extremely unrealistic.

Funny how the Bush Administration trumpets numbers like the CBO's, but then works overtime to destroy the very premises that would make those numbers work -- like the expiring tax cuts and perpetual foreign wars. So while the CBO claims a balanced budget by 2012, Heritage figures the numbers will look like this:

The deficit will reach $394 billion in 2006;
$412 billion in 2007;
$428 billion in 2008;
$436 billion in 2009;
$458 billion in 2010; and
$805 billion in 2015.

While the deficits are a clear result of Bush's tax cuts, Heritage would rather see a different solution -- drastic spending cuts. But given the size of these budget deficits, cuts from the discrectionary budget won't do the trick.

...more...

[UpInArms]

87. New CBO Baseline Substantially Understates Grim Budget Picture

http://www.heritage.org/Research/Budget/wm970.cfm

excerpt:

To present a more realistic picture of the federal budget over the next ten years, Heritage Foundation analysts corrected these shortcomings in CBO’s projections. The numbers in this paper are based on CBO’s projections but also include the following:

CBO numbers for extending the tax cuts and fixing the AMT;
CBO numbers on gradual phase-downs in Iraq and Afghanistan;
CBO numbers for past Gulf Coast reconstruction spending, as well as modest Heritage Foundation estimates of future appropriations;
CBO numbers for the reconciliation bill about to be signed into law;
A 5-percent annual increase in defense discretionary outlays (excluding supplemental bills) after 2006; and
A 2-percent rise in non-defense discretionary outlays (excluding supplemental bills) in 2006 and a 4-percent annual increase thereafter.

With this more realistic set of assumptions in place, several points become clear:

1) Budget deficits are far larger than CBO projects.

Realistic baseline assumptions show that the federal budget is in much worse shape than the CBO’s baseline numbers indicate. While CBO projects a balanced budget by 2012, it is far more likely that the deficit will explode:
The deficit will reach $394 billion in 2006;
$412 billion in 2007;
$428 billion in 2008;
$436 billion in 2009;
$458 billion in 2010; and
$805 billion in 2015.

By 2015 it would it take a $6,500-per-household tax increase just to balance the budget.

...more...

[UpInArms]

39. Treasurys lower after warning of auction delays

http://www.marketwatch.com/news/print_story.asp?print=1&guid={96EC159E-895F-42D2-A219-C712C4BB1F56}&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices were under pressure early Wednesday, propelling yields higher, after the Treasury Department warned that it might delay future auctions if Congress does not raise the debt ceiling soon.

However, the department said this quarter's refunding, which includes the revival of the 30-year bond, will continue as planned.

<snip>

Separately, Treasury said bond market participants should be prepared for possible delays in future auctions if Congress doesn't promptly raise the federal debt ceiling.

The department retired the 30-year bond in 2001, but decided last year to revive it in part to help corporations and governments fund pensions.

Although the revival of 30-year bonds was cheered by the market, in recent weeks there have been concerns about excess supply due to an exceptionally heavy issuance in January of corporate and government bonds.

...more...

[UpInArms]

110. 30-year Treasury bonds will mark their return Feb. 9

(Here's the answer to your question yesterday, 54anickel!)

http://www.azcentral.com/business/articles/020130yearBond01-ON.html

WASHINGTON - The long bond is back! The Treasury Department announced Wednesday that it will have its first sale of 30-year bonds on Feb. 9, bringing back a debt security it had discontinued issuing five years ago when the government's finances were in better shape.

But faced with soaring budget deficits, the government has decided to bring back the 30-year bond.

Treasury officials said they will sell $14 billion in 30-year bonds on Feb. 9 as part of $48 billion in new securities scheduled to be sold next week to raise money to pay the government's bills.

The government began selling a 30-year bond in 1977 but it was discontinued in 2001, the last year the government produced a budget surplus.

Since that time, the surpluses have disappeared and been replaced by huge deficits, including an all-time high of $413 billion in 2004. For the current budget year, the administration is projecting a deficit of $400 billion, up from last year's $319 billion imbalance.

...and the shill goes on to "blame" this deficit on Katrina... :grr:

This maladministration has driven that deficit into huge debt from the first day they they seized 1600 Pennsylvania Avenue.

:argh:

[UpInArms]

116. Treasurys end sharply lower; rates direction in question

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.6338437037-859053947&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices ended sharply lower Wednesday, sending yields higher, after unexpectedly brisk construction spending data reinforced a sense that the Federal Reserve's rates hikes may not be nearing an end. The benchmark 10-year Treasury note closed 10/32 lower at 99-17/32 with a yield of 4.561%, up from 4.545% late Tuesday. On Tuesday the Fed lifted the fed funds target rate to 4.5% and left open the possibility of further rate hikes. The strong housing sector data Wednesday made the market uneasy because it suggested the Fed may need to keep lifting rates to cool the robust real estate market.

Oh, the conundrum! :eyes:

[UpInArms]

29. Derivative traders see Jan US payrolls at 264,000

These jokers have been missing this number for months - they are always high (on something).

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T133621Z_01_N30324130_RTRIDST_0_ECONOMY-PAYROLLS-DERIVATIVES.XML

CHICAGO, Feb 1 (Reuters) - Traders in the first of four derivatives auctions ahead of the government's U.S. non-farm payrolls report bet on Wednesday the U.S. economy generated about 264,000 jobs in January, somewhat higher than what economists are expecting.

The median forecast in a poll of economists conducted by Reuters was 240,000. The Labor Department's report will be released on Friday at 8:30 a.m. (1330 GMT).

Nonfarm payrolls gained a seasonally adjusted 108,000 in December, weaker than expected at the time but subject to revision on Friday. Economists predict the January jobless rate will hold steady at 4.9 percent.

Investors use the auction to hedge against unwanted surprises in the report. Traders also use the auction to speculate on the outcome.

...more...

[ozymandius]

37. stinkin' ugly feculent pre-open blather

08:58 am : S&P futures vs fair value: -2.6. Nasdaq futures vs fair value: -13.0. Futures indications continue to suggest a decidedly lower open for the major indices. The earnings calendar remains in focus. Along with Google (GOOG), Allstate (ALL), Leadis Technology (LDIS), MicroStrategy (MSTR), JetBlue (JBLU), Legg Mason (LM), and Xcel Energy (XEL) have delivered disappointing earnings reports that contribute to the negative tone. On the economic front, Dec. Construction Spending data and the January ISM Index will be released at 10:00 ET.

08:32 am : S&P futures vs fair value: -3.5. Nasdaq futures vs fair value: -14.5. The stock market is still headed towards a sharply lower start. Google's (GOOG) plunge continues to weigh upon the market, and crude's rise to over $68 per barrel helps underpin the bearish bias. At 10:30 ET, the EIA will release the latest crude inventory stats. On the other side of the aisle, Boeing (BA) provides support. The company beat Wall Street's earnings expectations by $0.14 this morning.

[ozymandius]

41. markets are ready to take your money

9:40
Dow 10,882.31 +17.45 (+0.16%)
Nasdaq 2,296.13 -9.69 (-0.42%)
S&P 500 1,279.84 -0.24 (-0.02%)
10-Yr Bond 45.41 +0.14 (+0.31%)
NYSE Volume 119,679,000
Nasdaq Volume 167,455,000

09:14 am : S&P futures vs fair value: -3.0. Nasdaq futures vs fair value: -12.5.

[UpInArms]

48. 10:08 EST numbers and blather

Dow 10,887.92 +23.06 (+0.21%)
Nasdaq 2,294.97 -10.85 (-0.47%)
S&P 500 1,278.80 -1.28 (-0.10%)
10-Yr Bond 4.535 +0.08 (+0.18%)

NYSE Volume 347,780,000
Nasdaq Volume 397,774,000

10:00 am : The market stands on mixed footing. Boeing (BA 71.51 +3.20) continues to lift the Dow, while Google (GOOG 393.12 -39.54) still stunts the Nasdaq. In terms of the ten economic sectors, Health Care (+0.6%) is the early leader. Driven by Amgen (AMGN 77.53 +4.64), the biotechnology currently leads the S&P. There is speculation that Roche's competing anemia drug may delayed due to more stringent FDA standards for chemo anemia indications, and AMGN shares have subsequently surged over 6%. The early laggard is Energy (-0.6%). The upcoming release of last week's inventory stats may be a potential catalyst there. Separately, Construction Spending rose 1.0% (consensus 0.2%) in December, and the ISM Index checked in at 54.8 (consensus 55.5). DJ30 +14.73 NASDAQ -12.89 SP500 -2.06 NASDAQ Dec/Adv/Vol 1569/950/359.7 mln NYSE Dec/Adv/Vol 1544/1200/193.8 mln

09:40 am : As expected, the Nasdaq started the session well below the unchanged mark. Google's (GOOG) disappointing fourth quarter earnings report dominates the trading tone. After Tuesday's close, the company reported $1.54 in profit per share - versus the average analyst forecast of $1.77 per share. The miss was largely due to a much higher than expected tax rate, and has spurred market-dragging selling. Lower than expected earnings results from Allstate (ALL), Leadis Technology (LDIS), JetBlue (JBLU), Legg Mason (LM), and Xcel Energy (XEL) add to the bearish tone. On the flip-side, strong results from Boeing (BA) lend support and are behind the Dow's rise. On the economic front, the market awaits the Energy Department's inventory report at 10:30; the price of crude is presently unchanged at $67.89 per barrel. Construction Spending and the ISM Index will be released at 10:00. DJ30 +25.86

[UpInArms]

51. Revlon to cut jobs, take $10 mln charge

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T145007Z_01_N01274660_RTRIDST_0_MANUFACTURING-REVLON-UPDATE-1.XML

NEW YORK, Feb 1 (Reuters) - Revlon Inc. (REV.N: Quote, Profile, Research) on Wednesday said it will cut an unspecified number of jobs, resulting in a charge of about $10 million for severance and other costs.

The cosmetics maker also set plans for $185 million in equity offerings, and said it remains committed to using proceeds from a $110 million rights offering to reduce debt.

Revlon said it will consolidate some jobs in its sales, marketing and creative groups, as well as some headquarters jobs, in an organizational realignment designed to result in annual savings of about $15 million.

The New York-based company also stood by its financial forecast for 2005 and 2006 and its shares rose 1.7 percent in early trade.

...more...

[UpInArms]

55. Lying Media Alert:VIDEO:Matthews Coaches DeLay Through Lies About Abramoff

http://thinkprogress.org/2006/01/31/matthews-coaches-delay/

MATTHEWS: Do you think that’s unfair to say that you went over there on a junket?

DELAY: It’s incredibly unfair.

MATTHEWS: Why? Who paid for the trip?

DELAY: A legitimate conservative organization.

MATTHEWS: But wasn’t there a pass through?

DELAY: No, there was no pass through.

MATTHEWS: They came up with the money themselves.

DELAY: That’s exactly right. They raised their money themselves.

The trip — which was allegedly arranged through the National Center for Public Policy Research, a non-profit — was actually funded by Abramoff. DeLay’s airfare was charged to Jack Abramoff’s American Express card. (House ethics rules bar lawmakers from accepting travel and related expenses from registered lobbyists.)

...more...

[wordpix2]

80. I saw this and it was the most "softball" interview Matthews ever did

[ozymandius]

59. Dow making time with the suckers.

10:41
Dow 10,908.97 +44.11 (+0.41%)
Nasdaq 2,301.69 -4.13 (-0.18%)
S&P 500 1,281.10 +1.02 (+0.08%)
10-Yr Bond 45.39 +0.12 (+0.27%)
NYSE Volume 581,456,000
Nasdaq Volume 627,563,000

10:30 am : Each of the indices have gained some steam, with the Dow running higher and the Nasdaq paring more of its opening loss. The Financial sector's (+0.2%) rebound onto gaining ground adds momentum. In particular, the property and casualty industry demonstrates relative strength. Chubb (CB 96.75 +2.40) is the standout after reporting strong fourth quarter results and issuing reassuring guidance. Despite its disappointing fourth quarter earnings report and profit warning, Allstate (ALL 52.90 +0.85) has also attracted buyers. Within the space, ACE and STA have also risen in excess of 1.0%. DJ30 +36.66 NASDAQ -2.00 SP500 +2.19 NASDAQ Dec/Adv/Vol 1532/1117/559.4 mln NYSE Dec/Adv/Vol 1520/1377/351.6 mln

[UpInArms]

68. 11:40 EST numbers and blather

Dow 10,903.76 +38.90 (+0.36%)
Nasdaq 2,300.24 -5.58 (-0.24%)
S&P 500 1,280.40 +0.32 (+0.02%)
10-Yr Bond 4.559 +0.32 (+0.71%)

NYSE Volume 951,796,000
Nasdaq Volume 951,817,000

11:30 am : The major averages edge back toward their opening levels. The Financial sector's (-0.1%) return to the red challenges the broader market. The thrifts and mortgage (-0.5%) and specialized financial (-0.6%) industries are the sorest spots, and work to counter relative strength in property and casualty insurance (+0.7%). The Consumer Discretionary sector (-0.1%), which had gotten a slight boost from the better than expected builds in crude and gasoline supplies, has also dipped into the red. Internet retail (-1.6%) is its weakest link. EBAY and AMZN have suffered selling in reaction to GOOG's Q4 report. Leadership remains limited to respective 0.5% and 0.4% gains in Healthcare and Industrials.DJ30 +26.18 NASDAQ -6.41 SP500 -0.78 NASDAQ Dec/Adv/Vol 1392/1382/880.8 mln NYSE Dec/Adv/Vol 1326/1729/610.5 mln

10:55 am : At the bottom of the hour, the Energy Department released last week's energy inventory statistics. The report was mixed. Crude oil supply rose a better than expected 1.92 million barrels (analysts had expected a 1.0 million barrel build). Gasoline inventories also rose more than analysts had anticipated (by 4.28 million barrels versus the 1.5 million barrel consensus estimate). On the other hand, distillate supply unexpectedly declined by 198K barrels (analysts had forecasted a 900K barrel increase). The price of crude futures, which had been relatively unchanged ahead of the data, has ticked 0.5% lower to $67.55 per barrel. The Energy sector (-0.7%) remains the laggard, and Healthcare (+0.6%) and Industrials (+0.4%) continue to support the indices. The market has held relatively steady over the past half hour.DJ30 +41.07 NASDAQ -3.72 SP500 +0.45 NASDAQ Dec/Adv/Vol 1522/1201/708.2 mln NYSE Dec/Adv/Vol 1393/1565/439.7 mln

[UpInArms]

63. China: Bank Managers, Relatives Indicted for Stealing $485M

This came over the wire last night - but am seeing nothing about it this morning :eyes:

9:00pm 01/31/06 CHINA BANK MANAGERS, RELATIVES INDICTED FOR STEALING $485M

8:58pm 01/31/06 FEDERAL GRAND JURY INDICTS 2 FORMER BANK OF CHINA MANAGERS

[AnneD]

75. They tend to rapid trials...

and even speedier executions for corruption and theft. The guy may be dead by now.

[EuroObserver]

83. Yeah. If you must have a death penalty

...at least make it quick (once all due judicial procedure has correctly run its course, of course).

Of course, I consider such penalties to be beyond the pale of civilised society.

[OrangeCountyDemocrat]

65. Gold Tumbles Below $570 - State Of Union Is Sound!!!

So....I Exaggerated a bit on the headline.


http://business.iafrica.com/news/878584.htm

Gold below $570 on profit taking
Justin Brown
Wed, 01 Feb 2006The spot price of gold on Wednesday declined below $570 a troy ounce on profit taking and a strong dollar against the euro, traders said.

At 1.45pm, gold was quoted at $568.38/oz, down $0.37/oz from the previous close. On Tuesday gold traded as high as $572.95/oz — its best level since January 1981.

The euro was last quoted at $1.2095, down $0.0046 from late trade on Tuesday.

"Gold is lower on the stronger US dollar. After yesterday's peak, the market has gone quiet, with market participants exhausted after the activity in January when gold ended the month at a fresh 25-year peak," a London- based trader said.

"The market is sighing in relief and returning to its old ways of fluctuating with the US dollar. The gold market remains bullish. However, if the turmoil in the Middle East is resolved and Iran gives up its uranium enrichment then the gold price will drop," he added.

"The key factors that are supporting gold are the high oil price, Middle East turmoil and general strength in commodities, with aluminium over $2,500 a ton," he said.

Investment bank UBS has increased its one-month target for the gold price to $575/oz, although the bank expects a correction at some point, London-based UBS analyst John Reade wrote.

UBS continues to forecast gold at $555/oz on a three-month view, he added.

Gold ran into profit taking as traders in Hong Kong and Singapore, returning from their Lunar New Year celebrations, took advantage of the stronger gold price, UK-based TheBullionDesk.com analyst James Moore wrote.

"Continued investment interest and safe-haven positioning as concerns grow over Iran's nuclear policy and the victory of Hamas in Palestine will provide gold with good scaled down support with the metal still looking set to target $575/oz in the short-to medium term," he added.

Platinum

At 1.45pm, platinum was quoted at $1070.50/oz, down $10/oz from its previous close.

"The general bullish tone still seen within the commodities sector as well as the lack of chart resistance looks set to push platinum to further highs in the coming sessions," Moore wrote.

Resistance for the palladium price was now pegged at the December high of $298/oz, although a break of which would leave the way clear for a test of $330, Moore added.

"We believe that new-year allocations towards commodities will keep platinum and palladium firm in the near term and see platinum at $1100/oz and palladium at $300/oz over one month, although we suspect that profit taking will set in at some stage and see both metals lower to $1050/oz and $270/oz in three months," Reade wrote.

Palladium — which is largely used in autocatalysts — was quoted at $286.50/oz, down $7.50/oz from its previous close.

Rhodium was last quoted at $3400/oz, up from its previous close of $3350/oz, and the highest level since August 1991.

[UpInArms]

67. April Gold @ $569 oz - March Silver @ $9.71 oz

11:34am 02/01/06 APRIL GOLD FALLS $6.50, OR 1.1%, TO $569/OZ IN NY

11:34am 02/01/06 MARCH SILVER DOWN 17.5C, OR 1.8%, TO $9.71/OZ

[UpInArms]

99. April Gold closes @ $574 oz - March Silver @ $9.795 oz

1:42pm 02/01/06 APRIL GOLD CLOSES AT $574/OZ, DOWN $1.50 FOR THE DAY

1:42pm 02/01/06 MARCH SILVER FALLS 9C, OR 0.9%, TO CLOSE AT $9.795/OZ

[OrangeCountyDemocrat]

118. DJ NY Precious Metals Review

DJ NY Precious Metals Review: Gold Pares Profit-Taking Losses
DOW JONES NEWSWIRES

Gold futures finished lower in New York Wednesday after a choppy session in which long liquidation was reported but bouts of buying also occurred whenever profit-taking showed signs of abating, traders and analysts said.

The most-active April gold contract lost $1.50 to $574 an ounce. However, the market finished well above its session low of $567.60.

March silver lost 9 cents to $9.795 an ounce but was up from its $9.68 low.

During the course of the day, market watchers cited both dealer selling and fund liquidation as factors initially pressuring gold.

"Every time any of the big longs start to sell and take a little profit, all of the small(-position) guys get scared and start to sell," said a floor trader. "When the bigger guys stop, the smaller buys get right back into the market.

"The small buys are afraid the big long-position guys are going to dump all at once and we're going to come off $30 or $40. So you see locals or smaller traders try to jump in front of these big-position guys."

Tom Boustead, metals analyst with Man Financial, reported that some fund buying also re-emerged after the earlier weakness.

Some of the recovery may have been encouraged by the stronger tone in crude oil and geopolitical worries, particularly due to worries about Iran's nuclear program, he continued. As gold was closing, March crude was up 73 cents to $68.65 a barrel.

"The (weekly U.S.) oil-inventory data was sort of bearish," he said. "So the fact crude is higher gives you an idea of how much geopolitical risk is in the market."

The International Atomic Energy Agency on Thursday is expected to report on Iran's nuclear program to the U.N. Security Council. The five permanent members of the Security Council had agreed Tuesday that Iran should be hauled before the body over its disputed nuclear program.

While traders also cited profit-taking in silver, one commented that the market nevertheless showed some strength when it recovered from the earlier weakness to finish above Tuesday's low.

Meanwhile, April platinum settled down $5.20 to $1,080.10 and March palladium lost 35 cents to $296.60. Like gold, these metals pared their loss.

"You have basic run-of-the-mill long liquidation and profit-taking," said a trader of the Platinum Group Metals.

Settlements (open-outcry trading only):
London PM Gold Fix: $568.25 Versus $568.75 Tuesday
U.S. spot gold at 2 p.m. ET: $569.65, up 40 cents from previous day; Range: $563.50-$571.80
April gold (RGCJ06) $574, down $1.50; Range $567.60-$576.40
March silver (RSIH06) $9.795, down 9 cents; Range $9.68-$9.87
April platinum (RPLJ06) $1,080.10, down $5.20; Range $1,072.5-$1,084
March palladium (RPAH06) $296.60, down 35 cents; Range $292-$298

[UpInArms]

70. Formal SEC probe of Dana Corp. for earnings restatements

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.4971859028-859043507&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Dana Corp. (DCN) said Wednesday the Securities and Exchange Commission has issued a formal order of investigation related to the company's financial restatements, according to a filing with the agency. The auto parts supplier said the SEC's probe is a non-public, fact-finding inquiry to determine whether any violations of the law have occurred. Dana also said it will cooperate fully with the SEC in its probe. Dana opened its own inquiry into accounting matters last September, and the following month said it would file restated results for its 2004 results, which in turn would trigger the restatement of results from 2000 through 2003. The move is expected to cut Dana's after-tax net income by a total of $50 million.

11:46am 02/01/06 Dana to cooperate fully with SEC probe - MarketWatch.com

11:47am 02/01/06 Dana says SEC probe 'non-public, fact-finding inquiry' - MarketWatch.com

11:47am 02/01/06 Dana shares up 2.1% at $4.97 - MarketWatch.com

11:45am 02/01/06 Dana says SEC opens formal probe related to co. restatements - MarketWatch.com

[UpInArms]

72. GM's Top Communications Exec to Resign

http://breakingnews.nypost.com/dynamic/stories/G/GM_MOVES?SITE=NYNYP&SECTION=BUSINESS

DETROIT (AP) -- General Motors Corp.'s top communications executive, who steered the company's public relations during times of dismal earnings and bankruptcy rumors, will resign March 1, the automaker said Tuesday.

Tom Kowaleski, vice president of global communications, said he is stepping down because he misses the product side of the business and wants to pursue other opportunities. Steve Harris, who retired from GM in 2004, is returning to the company to replace Kowaleski.

Kowaleski, 54, has worked in auto communications for 26 years, with GM, DaimlerChrysler AG, American Motors Corp. and Renault SA. He joined GM as executive director of product communications in 1999 and was named vice president of global communications in 2004.

...more...

Wow! After 26 years of in "communications", he "missed" the product side of the bizness?

:rofl:

[UpInArms]

77. 12:21 EST numbers and blather

Dow 10,901.92 +37.06 (+0.34%)
Nasdaq 2,301.35 -4.47 (-0.19%)
S&P 500 1,279.94 -0.14 (-0.01%)
10-Yr Bond 4.563 +0.36 (+0.80%)

NYSE Volume 1,170,768,000
Nasdaq Volume 1,136,174,000

12:00 pm : Heading into the session's second half, the market remains contained within a tight trading range. A disappointing fourth quarter earnings report from Google (GOOG 394.60 -38.06) weighs upon sentiment and leaves the Nasdaq trending lower, but Boeing's (BA 71.60 +3.29) strong results is an offsetting factor that has taken the Dow higher.

The Healthcare (+0.4%) and Industrials (+0.3%) sectors have supported the market, and Energy's (+0.6%) recent rebound adds muscle. The biotechnology industry supports the former. Amgen (AMGN 76.67 +3.78) is the force behind the rise, and has gained over 5% upon speculation that FDA approval of Roche's competing anemia drug may be delayed. Boeing has lifted both the latter sector and the Dow. The company's Q4 profit more than doubled, and it raised its delivery and EPS guidance. Boeing's performance underscores the Overweight rating we hold on the Industrials sector.
With respect to Energy, a 1.4% rise in crude futures has sent the sector back to gaining ground. The EIA delivered a mixed inventory report that initially prompted a decline in both the commodity and the sector. An unexpected drawdown in distillate supply appears to counter the effect of better than expected builds in crude and gasoline.

Google has captured today's spotlight. The company reported EPS that fell significantly short of analysts' expectations last night. A much higher than expected tax rate caused the earnings miss relative to consensus; as investors take note of that impact, GOOG reverses some of its plunge. Google has sparked some bearishness across the Technology sector, but selling has been kept in check. Systems software, following Symantec's (SYMC) disappointing profit report and downside guidance, is the weakest link. Internet retailers have suffered some selling on account of Google and keep the Discretionary sector (-0.1%) below the flat line.

The Financial sector (-0.1%) has vacillated this morning. Property and casualty insurers provide relative strength. Chubb (CB 96.58 +2.23) delivered solid earnings, and Allstate (ALL 52.61 +0.56) remained profitable in spite of significant hurricane impacts. At the same time, banks are challenge following yesterday's rate hike and ambiguous policy directive. The submerged Treasury market weighs upon the industry as well as the rate-sensitive Utilities sector (-0.2%). Better than expected financial results from Duke Energy (DUK) lends some upside there. DJ30 +42.83 NASDAQ -3.95 SP500 +1.00 NASDAQ Dec/Adv/Vol 1518/1319/1.06 bln NYSE Dec/Adv/Vol 1458/1620/786.2 mln

[ozymandius]

84. 12:42 and pretty damn joyous Dow

Dow 10,910.26 +45.40 (+0.42%)
Nasdaq 2,303.78 -2.04 (-0.09%)
S&P 500 1,281.23 +1.15 (+0.09%)
10-Yr Bond 45.63 +0.36 (+0.80%)
NYSE Volume 1,263,032,000
Nasdaq Volume 1,230,588,000

12:30 pm : Over the past half hour, little has changed within the equity market. The Dow maintains solid footing as it garners support from about two-thirds of its constituents. Boeing's (BA 71.60 +3.29) 4.6% advance paves the way higher, and industrial peers Caterpillar (CAT 68.76 +0.86) and Honeywell (HON 39.45 +1.03) also book solid gains. Both Caterpillar and Honeywell have recently delivered solid fourth quarter earnings reports, and speak to our Overweight opinion on the sector. Altria (MO 72.89 +0.55) and Johnson & Johnson (JNJ 58.20 +0.66) have also risen more than 1.0% today. Of the lagging minority, Alcoa (AA 30.73 -0.62) fares worst. DJ30 +37.78 NASDAQ -4.41 SP500 +0.10 NASDAQ Dec/Adv/Vol 1471/1390/1.16 bln NYSE Dec/Adv/Vol 1355/1757/881.2 mln

[skids]

85. Question Re: crude futures and other commodities.

What percentage of the major indices weigh commodities? I thought these were kept separate. I know Wall Street is bizarro world but wouldn't that be built in negative feedback? commodity increases --> inflation --> interest rate increases --> bonds more desirable --> stocks sell --> non-commodity stocks go down (did I get that right?) I don't invest, it's JOOC that I ask.

[ozymandius]

95. I think you want to look at the New York Mercatile Exchange (NYMEX).

If I understand the scope of your question: your illustrated process of daily commodities price increases in proportion to stock averages makes sense. The feedback in this case is a tipping point when money flows out of other securities and into energy markets. This has been happening quite a bit lately. When money seeks safety we will often see it flow out of vulnerable areas that are affected by high energy prices. Conversely, the money flows into those areas that are boosted by higher energy prices, traded at the NYMEX.

NYMEX trades in commodities like oil and natural gas; not things like semi-conductors. These NYMEX commodities (oil, gas, coal) are represented on the Big Board with futures traders.These are two seperate entities.

I hope this helps.

[UpInArms]

88. GOP Makes Mob Look Like Choirboys

http://www.publicopiniononline.com/apps/pbcs.dll/article?AID=/20060131/OPINION03/601310335/1014

A list of Republicans involved in some sort of scandal ranges between 100 and 162. Many of these Republicans make the mob look like choirboys. Included in the Abramoff Indian scam is Ralph Reed of the Christian Coalition, which incidentally has been an arm of the Republican Party. Having claimed to own moral values, yet being part of the Indian scam, is indicative of its true moral values. I wasn't duped, but how many voters were?

Republicans have put Rick Santorum in charge of cleaning up their K Street Project, which is the main root of their corruption. It is like putting John Gotti in charge of cleaning up the mob. Santorum has been a leader of the (alleged) Republican shakedown machine with his Tuesday morning meetings with lobbyists. ... He has been a big part of the problem. ...Health Care HMOs got a $10 billion slush fund through the Republican Medicare bill while we seniors pay the price, thanks to the shakedown machine.

Republicans have tried to claim ownership to patriotism but does anyone get tired of veterans being swift-boated? The latest is allegations that Jack Murtha did not deserve or earn his two Purple Hearts and the Bronze Star.
To allow John McCain, Max Leland, John Kerry and now Jack Murtha to be swift-boated, while 75 percent of the current Republican leadership avoid military service is obscene. ... Swift-boaters are simply Bush surrogates.

Playing up the soldiers on the battlefield while tearing down the reputation of veterans who oppose them is wrong. Do Republicans have no shame?

[UpInArms]

91. Citigroup Asset Management outflows total $9.2 bln

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.5376621875-859047799&siteID=mktw&scid=0&doctype=806&

BOSTON (MarketWatch) - Legg Mason Inc. Chairman and Chief Executive Officer Raymond "Chip" Mason said Citigroup Asset Management had net outflows of $9.2 billion for the month since Legg Mason (LM) closed its transaction with Citigroup Inc."The majority of those are related to low-fee realization liquidity assets," Mason said in a conference call with analysts following the release of Legg Mason's earnings for the quarter ended Dec. 31. Legg Mason acquired nearly all of Citigroup's (C) asset-management business as part of a $3.7 billion deal that also saw Legg Mason's private-client brokerage and capital-markets businesses go to Citigroup. The deal closed Dec. 1.

Did Meanspin write that blather? :crazy:

[ozymandius]

94. Who farted at 1:49 PM?

Dow 10,880.41 +15.55 (+0.14%)
Nasdaq 2,296.80 -9.02 (-0.39%)
S&P 500 1,278.07 -2.01 (-0.16%)
10-Yr Bond 45.67 +0.40 (+0.88%)
NYSE Volume 1,552,180,000
Nasdaq Volume 1,490,524,000

1:30 pm : Tight range-bound trade persists. The dollar extends its rise that began yesterday afternoon. The Fed's latest rate hike was supportive for the greenback and a policy statement that left the door open for further monetary tightening has further helped it advance. While the stock market largely overlooked this morning's ISM index, the manufacturing report was bullish for the buck. A read above 50.0 reflects expansion; January's index checked in at 54.8. In terms of the rest of the week, the market remains focused upon Friday's employment report as it, and the data bewteen now and the March 28 FOMC meeting, will help dictate the Fed's next course of action.DJ30 +35.14 NASDAQ -4.33 SP500 +0.09 NASDAQ Dec/Adv/Vol 1431/1481/1.40 bln NYSE Dec/Adv/Vol 1355/1796/1.05 bln

1:00 pm : Some better than expected auto sales data has helped the market inch higher. Ford Motor (F 8.59 +1.1) reported that January U.S. sales rose 2%. The Briefing.com consensus estimate was pegged at -5.3%. Ford accredited the rise to the strength of its new lineup of mid-size sedans; Ford, Lincoln and Mercury brand car sales rose 23% compared to the year-ago period. Offsetting that increase were truck sales, which fell 7% due to a 30% decline in sales of the Ford Excursion SUV. DaimlerChrysler (DCX 57.96 +0.64) also reported better than expected January sales (+5% versus the -2.7% Briefing.com consensus estimate). Its results were aided by improved performance in both its Chrysler Group and Mercedes-Benz divisions. General Motors (GM 24.27 +0.21) has not yet reported.DJ30 +46.83 NASDAQ -2.03 SP500 +1.31 NASDAQ Dec/Adv/Vol 1409/1497/1.30 bln NYSE Dec/Adv/Vol 1348/1792/896.7 mln

[ozymandius]

96. Air raid over at 2:04

Dow 10,911.37 +46.51 (+0.43%)
Nasdaq 2,302.63 -3.19 (-0.14%)
S&P 500 1,280.98 +0.90 (+0.07%)
10-Yr Bond 45.63 +0.36 (+0.80%)
NYSE Volume 1,625,667,000
Nasdaq Volume 1,550,154,000

[UpInArms]

104. Defunct Lipper fund administrator sues ex-NY mayor

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T190506Z_01_N01300157_RTRIDST_0_FINANCIAL-KOCH-HEDGE.XML

NEW YORK, Feb 1 (Reuters) - Former New York City Mayor Ed Koch is facing a lawsuit by the administrator of the defunct Lipper Convertibles hedge fund to recover "overpayments" made to Koch as a former limited partner in the fund.

The suit, filed Jan. 30 in New York State Supreme Court, asks the court to require Koch to repay more than $1 million which fund administrator Richard Williamson said is owed to the estate of the fund.

<snip>

In 2002, Lipper was forced to dissolve the hedge fund after accounting firm BDO Seidman LLP found that the fund had overstated its net asset value by some $329.5 million, or about 40 percent, between 1995 and 2001, the suit stated.

The overstatement was discovered following the sudden resignations of portfolio manager Edward Strafaci and Michael Visovsky, its head researcher, in January 2002, according to the suit.

The suit said Koch at various times between 1995 and 2000 invested some $2.9 million into the Lipper fund and received net profit of $723,799. But based on the revaluation of the fund, Koch should have been paid only $174,846, the suit asserted.

...more...

Bolting for Bush

By EDWARD I. KOCH

I am a lifelong Democrat. I was elected to New York's City Council, Congress and three terms as mayor of New York City on the Democratic Party line. I believe in the values of the Democratic Party as articulated by Presidents Franklin Delano Roosevelt, Harry Truman, John F. Kennedy and Lyndon Johnson and by Senators Hubert Humphrey, Henry "Scoop" Jackson and Daniel Patrick Moynihan. Our philosophy is: "If you need a helping hand, we will provide it." The Republican Party's philosophy, on the other hand, can be summed up as: "If I made it on my own, you will have to do the same."

Nevertheless, I intend to vote in 2004 to reelect President Bush. I will do so despite the fact that I do not agree with him on any major domestic issue, from tax policy to the recently enacted prescription drug law. These issues, however, pale in importance beside the menace of international terrorism, which threatens our very survival as a nation. President Bush has earned my vote because he has shown the resolve and courage necessary to wage the war against terrorism.

The Democratic presidential contenders, unfortunately, inspire no such confidence. With the exception of Senator Joseph Lieberman, who has no chance of winning, the Democrats have decided that in order to get their party's nomination, they must pander to its radical left wing. As a result, the Democratic candidates, even those who voted to authorize the war in Iraq, have attacked the Bush administration for its successful effort to remove a regime that was a sponsor of terrorism and a threat to world peace.

...more crap at link...

[UpInArms]

106. Volumes of defaulted debt jumped in 2005 - Moody's (from $16.5B to $29B)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T183204Z_01_N01277906_RTRIDST_0_MARKETS-DEFAULTS-MOODYS.XML

NEW YORK, Feb 1 (Reuters) - The volume of defaulted debt almost doubled in 2005 to $29 billion, from $16.5 billion in 2004, due to larger borrowers defaulting on debt payments, Moody's Investors Service said on Wednesday in a release.

<snip>

"The defaults of several large, widely held issuers have made the defaults that have occurred more painful for investors," the ratings agency said. Several large defaults in 2005 boosted the average size of default to $905 million, compared with $457 million in 2004, Moody's said.

Charter Communications Holdings LLC, a unit of Charter Communications Inc. (CHTR.O: Quote, Profile, Research), was 2005's largest default by total bond volume at $6.9 billion. The company announced an $8.4 billion private debt exchange on Aug. 24, which was considered a default by ratings agencies because investors received less than par value for their bonds.

Other large defaulters widely held by investors in 2005 included two affiliates of Calpine Corp. (CPNLQ.PK: Quote, Profile, Research), Delphi Corp. (DPHIQ.PK: Quote, Profile, Research), Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) and Northwest Airlines (NWACQ.PK: Quote, Profile, Research), Moody's said.

...more...

[UpInArms]

107. US company bankruptcies may surge from 8-year low (too much debt)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T192705Z_01_N01287509_RTRIDST_0_FINANCIAL-BANKRUPTCY-COMPANIES.XML

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-01T192705Z_01_N01287509_RTRIDST_0_FINANCIAL-BANKRUPTCY-COMPANIES.XML

NEW YORK, Feb 1 (Reuters) - Bankruptcy filings by publicly traded U.S. companies fell in 2005 to an eight-year low, but may surge higher this year because companies took on too much debt, a bankruptcy specialist said on Wednesday.

Eighty-six companies, including Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research), Northwest Airlines Corp. (NWACQ.PK: Quote, Profile, Research) and grocer Winn-Dixie Stores Inc. (WNDXQ.PK: Quote, Profile, Research), sought Chapter 11 protection from creditors in 2005, BankruptcyData.com of Boston said.

That's down from 92 in 2004 and represented the fourth consecutive yearly decline.

Companies that filed for bankruptcy in 2005 reported total assets of $133.8 billion, the third largest amount ever.

Only 2001, which included Enron Corp.'s bankruptcy, and 2002, which included bankruptcies of WorldCom Inc. and United Airlines parent UAL Corp. (UALAQ.OB: Quote, Profile, Research), were bigger years. UAL emerged from Chapter 11 on Wednesday.

Kerry Mastroianni, a BankruptcyData.com vice president of research, said 2006 may be a busy year for bankruptcies by public companies because of the 2003 and 2004 surge in high-yield, or "junk," debt financings.

...more...

[OrangeCountyDemocrat]

109. Greenspan Painting Up To $38,300

Just wanted to update y'all in case anyone is interested in bidding. Auction still has over 2 days remaining, and price is now over $38K.

I'd be willing to contribute to a joint fund amongst DU Marketeers. I put in $20 towards the bid. OK, I'll splurge....maybe $50.

[UpInArms]

111. Thanks OCD!

I'm going to have to take a pass on that - I'm waiting to take my dog to the final resting spot of the Washed-Up Has-Been Partisan Hack. It will probably be a long roadtrip so I'm saving my pennies up for the cost of gasoline to make the trip.

:hi:

[AnneD]

122. Hey UIA,

I'll be happy to carpool with you and split expenses for that trip. My cat would also like to leave a present at the final resting spot (I worry that the odiferous nature of the gift might wake the dead). Zombie economics-an idea whose time has risen....

[UpInArms]

123. That's wonderful AnneD!

My dog leaves things that smell like eleven burning tires behind!

We'll have a grand roadtrip!

:hug:

[OrangeCountyDemocrat]

113. OK...It Just Jumped To $42,600....Who Bid? nt

[UpInArms]

112. Hospira to eliminate 1,100 jobs (Ohio, Illinois and Canada)

http://www.chicagobusiness.com/cgi-bin/news.pl?id=19369

(AP) —— Hospital products manufacturer Hospira Inc. on Wednesday said it plans to close two plants in Ohio and Canada and phase out another in Illinois due to the high cost of manufacturing in those areas and excess capacity of certain product lines.

Some 1,100 jobs will be eliminated, Hospira said.

The closures in Ashland, Ohio, and Montreal, Canada, are planned for the next 18 and 28 months, respectively.

Hospira said it plans to phase out production at a facility in Abbott Laboratories' North Chicago, Ill., campus, where it has leased space from its former parent company since its April 2004 spinoff.

The shutdowns - which carry with them impairment charges, severance costs and other expenses - are expected to cost from $95 million to $110 million over four years.

...more...

[UpInArms]

115. Calpine looking to sell units, reducing 300 staff positions

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38749.6397398264-859054245&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Calpine Corp. (CPNLQ) on Wednesday said it is taking the initial steps of a program to stabilize and strengthen the company's core power-generation business as the company plans to emerge from its Chapter 11 bankruptcy restructuring. Beginning today, Calpine is reducing activities and curtailing expenditures in certain non-core areas and business units, resulting in a staff reduction of about 300 positions. Calpine sees the actions reducing annual operating costs by $50 million. The company is looking to sell select development projects and will continue to evaluate existing petroleum coke development in Texas. Calpine is completing construction projects with long-term power sales commitments and is exploring the opportunity to sell this business unit. The company is discontinuing all new business activity for Calpine Power Services. Calpine is curtailing its retail power sales efforts to administering current contracts. And the company added that "every efort will be made" to sell Thomassen Turbine Systems.

3:11pm 02/01/06 CALPINE CURTAILING RETAIL POWER SALES EFFORTS

3:11pm 02/01/06 CALPINE TO SELL THOMASSEN TURBINE SYSTEMS

3:10pm 02/01/06 CALPINE DISCONTINUING NEW CALPINE POWER SERVICES BUSINESS

3:09pm 02/01/06 CALPINE EXPLORING SELLING CONSTRUCTION-RELATED UNIT

3:07pm 02/01/06 CALPINE LIMITING NEW BUSINESS DEVELOPMENT

3:08pm 02/01/06 CALPINE LOOKING TO SELL 'SELECT' DEVELOPMENT PROJECTS

3:06pm 02/01/06 CALPINE SEES CUTS REDUCING OPERATING COSTS BY $50M/YR

3:07pm 02/01/06 CALPINE RETURNING EFFORTS TO CORE NORTH AMERICAN BUSINESS

3:05pm 02/01/06 CALPINE REDUCES STAFF BY ABOUT 300 POSITIONS

3:04pm 02/01/06 CALPINE TAKES INITIAL STEPS TO STRENGTHEN COMPANY

[UpInArms]

117. 3:31 EST doing the happy dance down the final stretch

Dow 10,948.27 +83.41 (+0.77%)
Nasdaq 2,308.32 +2.50 (+0.11%)
S&P 500 1,281.89 +1.81 (+0.14%)
10-Yr Bond 4.561 +0.34 (+0.75%)

NYSE Volume 2,149,300,000
Nasdaq Volume 1,995,793,000

3:00 pm : Seven of the ten economic sectors now trend higher, but the indices remain range-bound as Energy's decline weighs heavily. Crude oil shaved $1.49 per barrel from its price tag today and closed at $66.40. Its decline, which follows better than expected builds in crude and gasoline, has sparked selling across each of the S&P's six industry groups. Refiners have been particularly targeted, with Valero (VLO 60.18 -2.25) and Sunoco (SUN 93.17 -2.03) faring worst. The former appears to suffer some profit-taking following yesterday's earnings-induced run. The latter, which will report its profit results following today's bell, was downgraded at CIBC. The firm today lowered its Oil and Gas rating to Market Weight from Overweight. Briefing.com continues to hold an Overweight rating on the Energy sector.DJ30 +49.18 NASDAQ -1.98 SP500 -0.10 NASDAQ Dec/Adv/Vol 1504/1497/1.82 bln NYSE Dec/Adv/Vol 1498/1724/1.44 mln

[UpInArms]

121. Anhesuer-Busch profits plunge almost 40% (no money to buy beer?)

http://www.marketwatch.com/news/story.asp?guid=%7B4BE4B079%2DCB0A%2D4068%2D82D7%2D8B7AFBBCB46B%7D&symbol=&siteid=mktw

CHICAGO (MarketWatch) -- Flat sales and higher costs dragged down Anheuser-Busch Cos. Inc. in the fourth quarter as the world's largest brewer saw its profit cut by almost 40%.

Anheuser-Busch (BUD) said Wednesday afternoon that it earned $201 million, or 26 cents a share, down from $332 million, or 42 cents, in the year-ago quarter.

Sales were roughly flat at $4.9 billion, or $3.4 billion after stripping away money collected for excise taxes.

<snip>

Pretax income from its domestic beer business fell 28%, A-B said, citing lower revenue per barrel and higher costs for aluminum, glass and energy, "plus costs for new packaging initiatives such as applied plastic labels and aluminum bottles."

...more...

Here! Have a virtual :beer:

[UpInArms]

124. closing numbers and blather

Dow 10,953.95 +89.09 (+0.82%)
Nasdaq 2,310.56 +4.74 (+0.21%)
S&P 500 1,282.46 +2.38 (+0.19%)
10-Yr Bond 45.61 +0.34 (+0.75%)

NYSE Volume 2,554,759,000
Nasdaq Volume 2,321,828,000

Late in the session, the market's major averages breached the tight range that had contained them all day. Relieved that Google's (GOOG 405.00 -27.66) earnings disappointment did not sink Wednesday's market, buyers stepped in and sent eight of the ten economic sectors higher. Strong earnings results from Boeing (BA 71.62 +3.31) supported the market, countered Google's effect, and drove the Dow's outperformance.

Lifted by Boeing, the Industrials sector (+0.8%) led. Honeywell (HON 39.27 +0.85) and Caterpillar (CAT 69.17 +1.27), which also recently delivered strong profit reports, were also influential leaders. Earnings results from those industrial bellwethers underpin our Overweight rating on the sector. Fueled by the biotechnology industry, Healthcare (+0.7%) offered additional leadership. Amgen (AMGN 76.18 +3.29) was the particular bright spot following reports that FDA approval of Roche's competing anemia drug may be delayed until 2009. Largely to the credit of AT&T (T 26.56 +0.61), which was positively featured in the Financial Times today, Telecom jumped 1.1%.

Google's earnings disappointment sat center stage and weighed heavily upon the Technology sector. But as investors acknowledged that the company's earnings miss relative to the consensus estimate was the result of a much higher than expected tax rate, Google shares well pared their losses and lessened the pressure within the sector. A surge in semiconductors was also responsible for the sector's climb and the Nasdaq's clearance of the flat line.

Unexpected rises in January auto sales contributed to afternoon buying efforts. Ford (F 8.68 +0.10), General Motors (GM 24.60 +0.54), and DaimlerChrysler (DCX 58.08 +0.76) each reported gains. Upside earnings from Time Warner (TWX 18.24 +0.71) lent further muscle to the Consumer Discretionary sector. Homebuilders and retailers, however, were offsetting areas. With respect to the latter industry, investors were cautious ahead of the January same-store sales results that will begin to stream in this evening.

Crude's 2.4% drop to $66.31 per barrel underpinned the late-day bias. Although the EIA's inventory report initially had a generally muted effect, traders ultimately focused upon the better than expected builds in crude oil and gasoline supplies. On the flip-side, the data spurred a 1.9% slide in the Energy sector. While that decline weighed heavily, broad-based buying across the rest of the market offset its effect.
On the economic front, The January ISM manufacturing survey fell to 54.8 from 55.6 in December. The read was slightly below expectations, but nonetheless reflects expansion. December construction spending was up a stronger than expected 1.0%. Neither release has had much affect on trade, but the ISM data helped the dollar extend its rise. The market remains focused on Friday's employment data as it, and the data between now and the March 28 FOMC meeting, will help dictate the Fed's next course of action.DJ30 +89.09 NASDAQ +4.74 SP500 +2.38 NASDAQ Dec/Adv/Vol 1401/1642/2.32 bln NYSE Dec/Adv/Vol 1458/1796/1.92 bln

[54anickel]

125. Nine (angry) little round, red heads (Mogambo)

http://www.321gold.com/editorials/daughty/daughty020106.html

-- I am having a hard time believing that the Federal Reserve is not expanding Total Fed Credit. In fact, it went down last week by $4 billion. Even Currency In Circulation is down. For a bunch of guys who are so hell-bent on flooding the world with money and destroying the USA with inflation, the Federal Reserve is suddenly doing a very poor job of it!

snip>

The real reason, I suspect, is much more prosaic, and that people have started stopping (as strange as that sounds) borrowing money, as suggested by a report on CNNMoney.com, namely that "Americans are among the world's most cash-strapped people, according to the latest semi-annual survey from AC Nielsen. Nearly a quarter (22 percent) of Americans have no money left once they've paid for their essential living expenses and spent their discretionary dollars. That puts the United States at the top of a list of 42 countries for saving futility."

I am going to gloss over the part where they seem to be saying how we ignorant wastrels out here have paid for "essential living expenses" and have also spent our "discretionary dollars", too! So, is the survey merely finding out who just got tired of spending money before it was all gone?

I dunno. Anyway, this goes along with the facts that about a quarter of the people have no health insurance because they can't afford it, and a quarter of homeowners have no homeowner's insurance because they can't afford it, and about a quarter of the drivers on the road have no automobile insurance because they cannot afford it, and 100% of the people I personally know cannot loan me any more money because they, so they claim, "can't afford it."

But life is not all bad, I am supposed to surmise, as they go on to say, "Some good news for Americans -- the results were an improvement from six months earlier, when 28 percent of those surveyed had nothing left at the end of the month." Well, it may be some good news for "some" Americans, but it is bad FOR America, as this means that at the end of the month there is a lot of money left over that was NOT spent on goods and services. The change may be due, Nielsen suggests, to "an attitude change -- 42 percent of Americans (up from 33 percent) now list debt repayment as their first priority for spare cash."

more...