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Friday, July 6, 2012
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<p><b>Top Stories</b><br> <b><a href="http://www.reuters.com/article/2012/07/06/us-samsung-earnings-forecast-idUSBRE8640WO20120706" rel="nofollow">Smartphones drive Samsung profit to new record.</a></b> Samsung (<a href='http://seekingalpha.com/symbol/ssnlf.pk' title='Samsung Elect Ltd(F)'>SSNLF.PK</a>) today estimated that operating profit hit a fresh record of between 6.5T won ($5.7B) and 6.9T won in Q2 vs. 3.75T won a year earlier, while revenue rose to 46T-48T won from 39.44T won. Earnings were boosted by soaring Galaxy sales, although, as one executive says, "that's distorting the overall trading outlook." Samsung's main concerns include Europe, and weak prices for chips and consumer electronics.</p> <p><b><a href="http://www.bloomberg.com/news/2012-07-06/june-u-s-payroll-gain-probably-capped-worst-quarter-since-2010.html" rel="nofollow">Unemployment seen holding steady.</a></b> Employment figures are due out this morning, with economists expecting that nonfarm payrolls increased by 100,000 in June. That would be higher than the 69,000 in May but would still round off the weakest quarter in over two years. The jobless rate is estimated to have held at 8.2%.</p> <p><b>Top Stock News</b><br> <b><a href="http://www.bloomberg.com/news/2012-07-05/visa-mastercard-said-to-near-accord-on-swipe-fee-lawsuit.html" rel="nofollow">Card giants poised to settle lawsuit over fees.</a></b> Visa (<a href='http://seekingalpha.com/symbol/v' title='Visa Inc.'>V</a>) and MasterCard (<a href='http://seekingalpha.com/symbol/ma' title='MasterCard Incorporated'>MA</a>) are close to settling a seven-year lawsuit brought by retailers over allegations that the credit-card giants fixed swipe fees, Bloomberg reports. While there's no word on the size of the agreement, Visa has set aside $4.28B to cover litigation, while MasterCard took a $495M charge in Q4.</p> <p><b><a href="http://seekingalpha.com/news-article/3404491-seagate-technology-announces-selected-preliminary-fiscal-fourth-quarter-2012-financial-results">Seagate falls after earnings warning.</a></b> Seagate (<a href='http://seekingalpha.com/symbol/stx' title='Seagate Technology'>STX</a>) yesterday warned that it expects FQ4 revenue of $4.5B, below a consensus of $4.9B, and gross margin of 33.6%, below prior guidance of at least 34.5%. The company also failed to increase its market share, which it blamed on a faster-than-expected industry recovery from Thai flooding, and a "supplier quality issue" that affected enterprise hard drive shipments by 1.5M. Shares were <font color="red">-3.4%</font> premarket.</p> <p><b><a href="http://allthingsd.com/20120705/yahoo-ceo-search-in-final-stages-with-levinsohn-and-kilar-in-lead/" rel="nofollow">Yahoo narrowing down CEO search, or maybe not.</a></b> Speculation is swirling about how far along Yahoo (<a href='http://seekingalpha.com/symbol/yhoo' title='Yahoo! Inc.'>YHOO</a>) is in its CEO search. All Things D reports that the short list is down to interim chief Ross Levinsohn and Hulu boss Jason Kilar, although Reuters reckons News Corp. (<a href='http://seekingalpha.com/symbol/nws' title='News Corporation'>NWS</a>) digital media chief Jonathan Miller is also in the mix.</p> <p><b><a href="http://online.wsj.com/article/SB10001424052702303684004577509223109488332.html" rel="nofollow">Duke cut Johnson over fears about suitability.</a></b> Bill Johnson didn't become the CEO of the merged Duke-Progress Energy (<a href='http://seekingalpha.com/symbol/duk' title='Duke Energy Corporation'>DUK</a>) - as originally planned - after the board decided at the last minute that he wasn't right for the job, the <i>WSJ</i> reports, although it was clear to some for a while that the arrangement wouldn't work. "Different personalities, different cultures," a source says.</p> <p><b><a href="http://www.cnbc.com/id/48078002" rel="nofollow">Investors wait for Navistar update.</a></b> Shares of Navistar (<a href='http://seekingalpha.com/symbol/nav' title='Navistar International Corporation'>NAV</a>) could be in for a wild ride today, as an operational update from the company is planned for this morning. Analysts don't have a firm handle on what Navistar will say, although there has been speculation recently that the firm will abandon plans to develop pollution-reducing engines following repeated problems.</p> <p><b><a href="http://online.wsj.com/article/SB10001424052702303561504577492532234404676.html" rel="nofollow">Strauss Auto nearing the end after entering "Chapter 55."</a></b> Strauss Auto looks set to be finally put out of its misery after probably becoming the first company ever to enter "Chapter 55" - i.e. to file for bankruptcy protection five times. The parts retailer first went into Chapter 11 in 1979; the latest filing was last month, but despite recovering from near death previously, Strauss now intends to sell its assets and file for liquidation.</p> <p><b><a href="http://www.bloomberg.com/news/2012-07-05/countrywide-used-loans-for-favor-with-fannie-mae-report-says.html" rel="nofollow">How Countrywide tried to win friends and influence people.</a></b> Countrywide Financial (<a href='http://seekingalpha.com/symbol/bac' title='Bank of America Corporation'>BAC</a>) used a VIP loan program from 1996-2008 to try to prevent legislation that would have hampered its sale of sub-prime mortgages, a report from a House panel said yesterday. The lender offered or gave discounts to members of Congress and their staffers, government officials and executives at Fannie Mae (<a href='http://seekingalpha.com/symbol/fnma.ob' title='Fannie Mae'>FNMA.OB</a>).</p> <p><b>Top Economic & Other News</b><br> <b><a href="http://www.dowjones.com/products/djfxtrader/articles/GermanTwo-YearYieldsTurnNegativeAfterECBCutsDepositRate.asp" rel="nofollow">Central-bank triple play leaves markets unconvinced.</a></b> The German 2-year Schatz yield has fallen into negative territory for the first time since the panicky days of early June, as Spanish and Italian yields surge higher following rate cuts from the ECB and People's Bank of China yesterday, as well as pledges of further money printing in the U.K. Markets either wanted more from the ECB or are worried that the central banks know something that we don't. Spanish 2-years were +38 bps to 4.99% and Italy +12 bps to 3.84%.</p><p><b><a href="http://www.cnbc.com/id/48084196" rel="nofollow">Bankruptcies fall but student debt burden gets heavier.</a></b> The number of U.S. businesses and consumers filing for bankruptcy fell by 14% to 632,130 in H1, and the figure could end 2012 at the lowest level since before the 2008 financial crisis, according to the American Bankruptcy Institute's Samuel Gerdano. He attributes the decline to rock-bottom interest rates. However, <a href="http://www.economicmusings.com/post/26574733837/5-charts-that-tell-it-all-on-student-loans" rel="nofollow">student loan delinquencies</a> are rising in what frighteningly looks to be a structural, not cyclical phenomenon.</p> <p><a href="http://www.reuters.com/article/2012/07/05/iran-oil-exports-idUSL6E8I59BS20120705" rel="nofollow"><strong>Iranian oil exports likely to halve as sanctions kick in</strong>.</a> Iran's July oil exports will probably be half those of last year, analysts forecast, as new sanctions stifle flows and cost the country more than $3B a month in lost revenue. Iranian exports have declined steadily from an average of 2.2M barrels a day in 2011; July exports could fall to 1.1M or less amid complications with shipping insurance and disputes with China over freight costs.</p> <p><b>Editors' Picks</b><br> <b><a href="http://seekingalpha.com/article/704941-mozilla-attempts-to-dismember-android">Mozilla Attempts To Dismember Android</a></b><br> <b><a href="http://seekingalpha.com/article/703331-splitting-up-news-corp-means-shoring-up-or-shipping-out-print-ops">Splitting Up News Corp.: Shoring Up Or Shipping Out Print Ops</a></b><br> <b><a href="http://seekingalpha.com/article/702851-5-year-cycles-about-time-to-chuck-treasuries">Five-Year Cycles: About Time To Chuck Treasuries?</a></b></p> <p><b>Today's Markets:</b> <br> <b>In Asia</b>, Japan <font color="red">-0.7%</font>. Hong Kong flat. China <font color="green">+1.0%</font>. India <font color="red">-0.1%</font>. <br> <b>In Europe</b>, at midday, London <font color="red">-0.1%</font>. Paris <font color="red">-0.5%</font>. Frankfurt <font color="red">-0.4%</font>. <br> <b>Futures at 7:00:</b> Dow <font color="red">-0.05%</font>. S&P <font color="red">-0.1%</font>. Nasdaq <font color="red">-0.1%</font>. Crude <font color="red">-1.65%</font> to $85.78. Gold <font color="red">-1%</font> to $1592.80.</p> <p><b>Today's economic calendar:</b><br> Monster Employment Index<br> <b><font color="maroon">8:30</font></b> Nonfarm Payrolls<br> <b><font color="maroon">10:30</font></b> EIA Natural Gas Inventory</p> <p>See full <a href="http://seekingalpha.com/currents/earnings">real-time earnings coverage »</a></p> <p>Wall Street Breakfast is sent out by email for free -- <a href="http://seekingalpha.com/page/email-preferences/?source=newsbriefbody">Get it now »</a> </p>
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If unemployment is steady, how can we have these "free" services doubling in size?
If you are "working", you don't need a fed handout. Sounds like the unemployment number are bogus.
For instance, if someone gets some sort of home heating assistance from the state, then they can get food stamps without being subjected to the asset or income tests. One state, I believe it was New York, sent out $1 checks to a bunch of people from it's home heating assistance program just to enable them to qualify for food stamps.
In other instances, receiving some brochure that explains various goverment benefit programs has been enough to allow some people to get food stamps without having to meet the income or asset tests.
There was a case in Ohio where some person won a $1 M lottery and still collected food stamps for a significant period of time afterward.
This kind of stuff must be stopped.
James took the unemployment figures from the must know news and quickly switched over to decry the waste in feeding people and providing medical care. A chorus of supporters piled on. Certainly, waste and fraud should be weeded out. This is where his reference to free cell phones might come in. But, in any modern rich society, that is no reason to fail to provide life's fundamental needs. That is but a rationalization for greed.
when you have to work 3 part time jobs to make ends meet, not much time for sleep or family.
> jack
The needs test for ALL of these handout programs should be sharply improved.
No one is for denying poor people some food, but when there is flagrant fraud in these programs - it's time to put a stop to it.
As for phones, is that a basic need? To call 911 - yes, to call and text friends and use them to vote for Who's Got Talent - NO.
You can limit a cellphone to emergency numbers only and I have no problem with that. Having the government actually advertise on TV that if you are on one program - like Food Stamps or Medicaid, you are automatically qualified to get a free phone is a little over the top.
Don't tell us we've "come to a wrong conclusion". You have no sense of what goes on here and how flagrant the fraud is.
People who work are tired of seeing others buy expensive food and other items with a LINK card (EBT card/ Food stamps) and then walk out to a luxury car and drive off. Poor people do not drive off in a Lexus.
I'm pretty sure it went out the window with the bank bailouts, endemic cronyism at all levels of Washington and Wall Street, and CORZINE. Moral Hazard.
That's not unemployed. If you are working 3 part-time jobs you are underemployed. I know many people like that who were making $90K-$120K and now making $30K-$40K. $40K might sound like a lot to some people but if you were living in a lifestyle of $90K-$120K believe me, you would be hurting.
PLUS - those who were making good money - spent it and others had jobs because of it. Now - people have cut down on many things from Landscaping, home repairs, home additions and the list goes on. All those who were depending on those jobs are also indirectly (or directly) affected.
The Chinese government is one of very few that is stupid enough to try to create work for the people.
> jack
> jack
if you are a roofer, siding person, drywall person, floor sander etc. there is work for you.
to say nothing of repair of downed power lines.
we used to hear all this talk about homes by the sea powered by the wind on the plains, or solar panels in the desert.
without a robust transmission grid (lots of redundancy required) the job is only half done.
> jack
> jack
Federal employees are receiving huge entitlements that are very much undeserved. They are rewarded for wasting money and know exactly what they are doing. These parasites are producing NOTHING and making a lot of money for it. Families on food stamps are angels by comparison.
And no one is in jail because CONgress needs this scum to fund their campaigns and provide illegal perks.
What’s really special is, they prosecute Roger Clemens for lying to CONgress. Yet, they lie constantly to us and no one is ever punished.
We could take charge here and fire those responsible. But many voters not only ignore this blatant corruption, but some even try to suppress this to further their ideology.
Kudos to Issa for unearthing this corruption. Now carry it through to criminal prosecution of both payers and recipients of these bribes.
Our comments are dead on on the same issue. Nice to see I am not the only one questioning the Congressional "focus of justice".
(More like hocus-pocus of justice)
Have a good weekend.
Remember too, his Presidential "candidacy" in 2008 while he was chairman of the Senate Banking Committee. Can we all agree he had some juicy targets to squeeze for "contributions?"
People want to see some justice instead of seeing former baseball players hounded for steroid use. If they did use steroids, so what?That had no effect on my house equity.
Selling packaged mortgage junk bonds and rating them Triple A impacted just about 100% of homeowners. So where is the "justice" coming down on all these financial criminals????
1. It's a boring subject to the general public.
2. The media is in the bag for the politicians.
"Did Countrywide pay them to take the loan?"
In a way, yes. If the average citizen got the kind of "breaks" on a loan then the lender would have to issue a 1099 and the borrower PAY taxes on the value of the "special considerations".
When oil (barrel) prices go down, it seems to take at least a week or two to see any changes in the price at the pump.
molasses flows slowly.
as you say, prices ramp up swiftly, the down slower as forced by competition.
that's why we have fewer oil corporations today, the aim is to reduce competition.
< jack
lack of competition.
the former service stations are now food stores, the earlier service bays converted to retail shelves.
> jack
It seems that we (the US) have a place called The American Bankruptcy Institute. I am to understand that people are paid to keep track of people who are unable or unwilling to pay their debts. Only in America could someone benefit from something like this.
No word yet on how deeply involved with energy price manipulation JPM is. The use of attorney-client privilege to keep e-mails from investigators is an interesting move by JPM. Consumers in California deserve the truth on what exactly took place. Just another week for JPM when you throw in the LIBOR investigation. The fact that Jamie Dimon is able to keep his job is amazing to me.
It seems that Countrywide bought off some politicians. Is anyone really surprised at this news? The level of corruption in US politics must be at an all-time high. Perhaps we (the US) could form The American Congressional-Criminal Institute. This group could track all of the politicians who break the law while they are members of Congress. They could use the empty building next to the Bankruptcy Institute or almost any building in Detroit.
Where is Jon Corzine?
Have a great day everyone.
Remember Congress is dominated by the legal profession and protects itself well. They often exempt themselves from the same laws they create for us to live under.
r2Q5- I like your style.
Where is Jon Corzine?
The officer asked: "Who's is it?
Elena replied: "It's my cousin's!"
> jack
> jack
?
> jack
There is one caveat. If there is an event that might be "misconstrued" for a short period, it could be held back by a disreputable organization until then. Considering the state of amorality of American politics, this could happen. Ask Senators McCain and Kerry. They lived through such events.
Everytime I think I can't be stunned anymore, I'm proven wrong. This d*bag makes a nine figure income and can't be bothered to pay his bills?!? Oh, and don't worry...he got the loan in the end.
Democrats, both public and private, have a reputation for not paying their bills or their taxes. That's why it's crazy to trust them for a loan or in positions of authority.
> jack
Or: ""The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is." -Winston Churchill"
> jack
privatize the profits, socialize the costs.
that's the american way.
> jack
do not get run over by a truck while doing it.
> jack
I prefer that to term limits. We have term limits for elected officials in California and the consequences have been counter-productive. As well, there is a CA state law that bars payment of the legislature if they do not pass a budget. They haven't and the state controller withheld their pay. Legislators went to court and got their money. It's extremely difficult to reign these rascals in other than by voting then out. Which voters are too ignorant to do. We're doomed!
1. Name ALL the Members of Congress, staffers and people holding postilions of say GS 15 or higher, who received preferential mortgages from Countywide.
2. Go back and find if any of those named had any any nvlovelment in government decisions affecting Countrywide
3. Claw pack the pensions of anybody found in 2 above, as these people were serving themselves not the government.
You hungry and broke? OK, here's your rice and beans and potatoes and some government cheese. I see these food stamp people buying the best cuts of meat just to use up the allotment. We can not afford to pay people to be unproductive.
Used to be we taught kids so they could be productive citizens. Now, we teach them to game the system and get freebies. A Dem precinct walker came by last week. Said if we give Obama another term, we'll be able to get all sorts of free stuff. If we don't, where are we going to get our health care? And he had his teenage son with him, teaching him dependency. Ah, life on the plantation... some people are bred for it.