Tech earnings take center stage next week
Big tech names set to report next week include Intel Corp and Yahoo Inc on Tuesday; The tech sector has the highest projected earnings growth rate among the 10 S&P sectors for the second quarter at 12.3 percent, its best quarter since the first quarter of 2012. Goldman Sachs analysts wrote in a note that the information technology sector "appears to be the most undervalued sector," giving investors more reasons to be bullish on tech stocks. The implied earnings-per-share growth for the tech sector has been 5.4 percentage points above the S&P 500 on average over the past 10 years, but it is now just 1.0 percentage point above the benchmark index, according to the Goldman Sachs note.
Fri, 11 Jul 2014 20:22:17 -0400
Charting a path to 'normalization'
By Robin Emmott BRUSSELS (Reuters) - Investors shift focus this coming week from trouble spots such as Portugal's biggest listed bank to a marathon testimony by the U.S. Fed chair that could help chart a global path towards post-crisis "normalization". Concerns about losses associated with the founding family of Banco Espirito Santo had threatened to rattle euro zone markets, but by Friday traders had decided that BES was unlikely to disrupt Portugal's financial system or revive broader worries about the bloc's weaker economies. In any case, Janet Yellen's two-day appearance in the U.S. Congress from Tuesday will dominate global markets, which want above all to know how long the Federal Reserve will leave interest rates low after an unprecedented period of cheap money since the financial crisis. While October is likely to mark the end of the central bank's money printing, investors are looking for hints of an interest rate hike early next year, which would signal a return to normality after the Great Recession and its aftermath.
Sun, 13 Jul 2014 05:33:31 -0400
Bruised and grumbling, foreign banks bend to U.S. rules
By Steve Slater and Michelle Price LONDON/HONG KONG (Reuters) - Financiers may grumble that the United States is acting like an imperial power in punishing foreign banks for dealings far beyond U.S. territory, but in the end they are more likely to bow to Washington than kick against its dollar muscle. Last week, French politicians and business leaders demanded an end to the global dominance of the U.S. currency - and hence of the U.S. banking system - after a New York court fined French bank BNP Paribas $9 billion for doing business in Sudan, Iran and Cuba. Yet despite irritation at the long reach of U.S. sanctions, most bankers see that as wishful thinking. Instead, major lenders in Europe and Asia are reacting to the steady flow of punishments from the United States by doing ever more to comply with U.S. laws and by cutting business ties in countries Washington dislikes rather than risk its wrath and, in the worst scenario, risk exclusion from the dollar system.
Sun, 13 Jul 2014 04:23:03 -0400
Engine maker CFM eyes record orders in 2014
The chief executive of engine maker CFM International expects another record year for engine orders, after the company achieved a best in 2013. "When we see the number of orders already achieved at this time of year and when we compare this figure with the previous year ... then we are about to achieve another record year in 2014," Jean-Paul Ebanga told journalists at an event ahead of the Farnborough air show, which runs from July 14-20.
Sun, 13 Jul 2014 06:56:33 -0400
American Airlines picks CFM for $2.6 billion engine deal
FARNBOROUGH England (Reuters) - CFM International, a joint venture between General Electric Aviation and Safran of France, said on Sunday that it had been picked by American Airlines Group to provide engines for 100 Airbus A320neo jets the airline has on order. CFM said the order is worth $2.6 billion at list prices. The deal confirms what sources familiar with the matter told Reuters this month and marks a loss for United Technologies Corp's Pratt and Whitney unit, which makes the other engine offered on the Airbus A320neo. (Reporting by Mark Potter; Editing by David Goodman)
Sun, 13 Jul 2014 04:35:06 -0400
Dark pool scrutiny no slam dunk for traditional exchanges
By Lionel Laurent and Clare Hutchison LONDON (Reuters) - The regulatory noose is tightening around dark pools, private share-trading venues that promise anonymity for specialist investors, offering a chance for rival exchanges in the United States and Europe to take back market share. A recent batch of enforcement actions against dark pools run by big global banks, coupled with incoming rules in Europe that aim to make markets more transparent by putting a cap on dark-pool trading, has alerted investors to the risks of trading in the murkier areas of the market.
Sun, 13 Jul 2014 04:06:24 -0400
Swiss chocolate maker Lindt near deal to buy Russell Stover: report
Swiss-based chocolate maker Lindt & Spruengli is in advanced discussions to acquire family-owned U.S. candy business Russell Stover, and the two companies could announce an agreement as early as next week, the Financial Times reported on Saturday. Russell Stover, known for its boxed chocolates, is the third-largest U.S. candy company by sales. Lindt is the Swiss-based maker of Lindor chocolate balls and gold foil-wrapped chocolate bunnies. A deal with Russell Stover would enable Lindt to diversify further beyond the European market, where it gets a big chunk of its revenues, and get a strong presence in the U.S. market.
Sat, 12 Jul 2014 21:01:32 -0400
Fed officials debate timing of interest rate increases: WSJ
(Reuters) - A debate is intensifying among the Federal Reserve's regional bank presidents about whether to push interest rates up from zero sooner than planned because of recent improvements in the U.S. job market, the Wall Street Journal reported. Most Fed officials at June's policy meeting didn't see rate increases until 2015, according to projections made before the Labor Department reported on July 3 that the jobless rate fell to 6.1 percent in June, the Journal said in an article posted late on Friday. Fed officials hadn't expected unemployment to fall to near 6.1 percent until the end of this year. "We have made more progress toward our unemployment goals than we would have thought" earlier this year, San Francisco Federal Reserve President John Williams told the Journal.
Sat, 12 Jul 2014 14:31:50 -0400
Harbinger sues U.S. government over wireless company LightSquared: report
Phil Falcone's governmentPartners has filed suit against the U.S. government, accusing it of reneging on an agreement regarding bankrupt Harbinger-backed wireless company LightSquared LP, the Wall Street Journal reported. Harbinger, in a suit filed on Friday in the U.S. Court of Federal Claims in Washington, said global positioning systems companies unlawfully used spectrum owned by LightSquared, the Journal said. The GPS companies and advocacy groups warned that LightSquared's network could interfere with GPS. The U.S. Federal Communications Commission's decision in 2012 to heed those warnings and stop LightSquared from deploying its network was a breach of the regulatory agency's agreement to allow Harbinger to buy LightSquared, according to the lawsuit.
Sat, 12 Jul 2014 18:14:30 -0400
Japan says Pacific trade talks agree broadly on labor, health issues
OTTAWA/TOKYO (Reuters) - Pacific trade talks have reachedbroad agreement on labor issues and sanitary and phytosanitary standards but some difficult aspects remain to be tackled, Japans chief negotiator said on Saturday. U.S. President Barack Obama said last month he aimed to have a free-trade draft he could take to meetings with other leaders in November. Chief Japanese negotiator Koji Tsuruoka said the 12 member nations of the Trans-Pacific Partnership (TPP) made progress at talks in Ottawa but there was no discussion about the timing of the overall accord in the regional free trade agreement. "We came to Ottawa so that we would clarify what issues are left (after TPP talks in Ottawa) and find out the direction.
Sun, 13 Jul 2014 00:30:57 -0400
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