Wall Street Breakfast: Must-Know News

by: Wall Street Breakfast
Wall Street Breakfast
Seeking Alpha's flagship daily business news summary, gives you a rapid overview of the day's key financial news. It is published before 7:00 AM ET every market day and delivered to over 900,000 email subscribers.

Top Stories
Cyprus bank closures enter second week. Cyprus will keep its banks closed until Thursday following the bailout deal reached yesterday. The government fears a massive bank run by depositors with businesses crippled and more ATMs running out of money. Cyprus Finance Minister Michael Sarris says large depositors in Cypriot banks could lose about 40% of their deposits.

BRIC nations plan new bank. Leaders in Brazil, China, Russia, and India are exploring establishing a new development bank that could take on some of the roles of the IMF and World Bank. The goal is to create a bank with a sharper focus on emerging markets. Plans on funding the new bank have already created differing opinions with Russia favoring to cap each nation's initial contribution at $10B.

Top Stock News
China attacks Apple. Apple (NASDAQ:AAPL) takes on more criticism in China in a fresh round of propaganda attacks. Despite the trickiness of dissecting the meaning of local news coverage, analysts think the latest development could indicate the government will start doing more to help domestic smartphone companies increase share in Apple's second biggest market.

Ford opposes free trade talk for Japan. Ford (NYSE:F) CEO Alan Mulally said the company will continue to oppose Japan's entry into free trade talks with the United States until the nation opens its markets for more U.S. cars and works on measures to strengthen the yen. The exec called the automobile market in Japan the most closed in the world.

Raytheon finds ways to cut costs. Raytheon (NYSE:RTN) said it will reorganize in a series of cost-cutting moves that could shave $85M in expenses. The company's business units will be reduced down to four and 200 jobs will be eliminated as part of the process.

Hulu looks to sell itself. Hulu (DIS, CMCSA, NWS) has contacted potential buyers to gauge their interest, according to sources. Hulu's media industry owners put the video site up for sale in 2011, but decided to hold on after failing to receive an adequate bid. The bids received in a fresh sale attempt will depend a lot on the content licensing terms the owners are willing to offer. Questions surrounding Hulu's CEO transition could also come into play.

Another top exec leaving Zynga. Zynga (NASDAQ:ZNGA) CIO Debra Chrapaty will leave the company to take over the CEO position at enterprise cloud company Nirvanix. Her departure is just the latest in a string of exits by high-level execs and management re-shuffling moves.

Patent portfolio part of Dell matrix As Blackstone, Carl Icahn, and Silver Lake mull how much they're willing to pay for Dell (DELL), the company's sizable patent portfolio might be influencing their decisions. Dell has 3,449 patents and 1,660 applications, and corporate IP analysis firm M•CAM estimates 47% of the portfolio has commercial value. Given the price tags attached to recent patent sales, the portfolio could fetch a hefty sum.

Boeing Dreamliner back in the air. Boeing (NYSE:BA) successfully conducted the first of its 787 Dreamliner test flights late yesterday, landing without incident after a little more than a 2-hour flight in Washington. It's another step forward for the company as it aims to certify a fix for the 787's lithium ion battery system.

Hedge funds to exit Chesapeake Energy case . Some high-profile hedge funds sitting on $250M in Chesapeake Energy (NYSE:CHK) debt seek to withdraw from litigation between the company and Bank of New York Mellon Corp. over whether or not bonds can be redeemed. After originally being allowed by the court to intervene in the case, the funds are taking the action in an effort to simplify and speed up the courtroom proceedings.

Top Economic & Other News
S&P trims GDP forecast for euro-zone. S&P reduced its estimate for 2013 euro-zone GDP to -0.5% from a prior estimate of -0.1% with financial conditions in the region becoming weaker. A report from the agency finds exports in Spain and Portugal holding up but lagging in France and Italy.

South Korea cuts estimates for Q4 GDP. The Bank of Korea says GDP in South Korea grew 0.3% in Q4, a slight reduction from its initial estimate of 0.4%, as the impact of a weak yen continues to take its toll on exports. The central bank forecasts economic growth of 2.8% for 2013 after pegging GDP at 3.2% just a few months ago.

Editors' Picks
Understanding Interest Rate Risk And Duration Of A Bond
Conspiracy Theory... BlackBerry?
Microsoft Is Far Too Cheap To Ignore Any Longer

Today's Markets:
In Asia, Japan -0.6% to 12471. Hong Kong +0.3% to 22311. China -1.4% to 2575. India +0.1% to 18684.
In Europe, at midday, London +0.1%. Paris +0.7%. Frankfurt +0.3%.
Futures at 7:00: Dow +0.2%. S&P +0.3%. Nasdaq +0.3%. Crude +0.5% to $95.31. Gold -0.6% to $1596.40.

Today's economic calendar:

Tuesday's economic calendar:
7:45 ICSC Retail Store Sales
8:30 Durable Goods
8:55 Redbook Chain Store Sales
9:00 S&P Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
10:00 Richmond Fed Mfg.
10:00 New Home Sales
1:00 PM Results of $35B, 2-Year Note Auction

Notable earnings before today's open: TRQ

Notable earnings after today's close: SAI, MBLX

See full real-time earnings coverage »

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