Wednesday, October 21, 2009

Wednesday Morning (YHOO, SNDK)

US Stocks opened higher after healthy earnings reports from Yahoo (+4%) and Sandisk(+8%), to new a few. The DJIA is up 50points or a little over half a percent, with American Express and Dupont leading the way.

FROTHY! Did you know Apple is now worth more than General Electric, Procter & Gamble, and Google?
Steve Jobs is officially the king of Silicon Valley. The Apple CEO snagged the title yesterday when shares of Apple soared to a new yearly high and helped Apple's market cap sail past search-engine giant Google for the first time, reaching $179.3 billion, vs. Google's market cap of $174.3 billion. The stock run-up came amid a buying frenzy after Jobs pulled off another seemingly improbable feat of posting blockbuster results that even beat Wall Street's best estimates.

Among defense arguments for Raj Rajaratnam might be the issue that insider trading LOST him more money than it made him.
The press releases from the Securities and Exchange Commission highlighted about $20.6 million in alleged insider trades that worked. But The Times report indicates that one particularly bad series of 2008 trades involvingAdvanced Micro Devices Inc. more than wiped out that amount of money, losing Rajaratnam's Galleon Group more than $30 million.

As the USA debates how much debt our economy can service, Japan faces even higher indebtedness.
The finance minister, Hirohisa Fujii, suggested Tuesday that the government would sell 50 trillion yen, about $550 billion, in new bonds — or more. “There’s no mistaking the budget deficit stems from the past year’s global recession. Now is the time to be bold and issue more deficit bonds,” Mr. Fujii told reporters at the National Press Club in Tokyo. “Those who may call this pork-barrel spending — that’s a total lie.”

Despite roars over domestic artificial stimulus, China may be in more of a pickle.
The country’s rebound has been powered by 4 trillion yuan ($586 billion) ofspending on railways, roads, power plants and public housing. The program ends next year, forcing Premier Wen Jiabao to find new ways to sustain the expansion with increased consumer spending and the financing of small businesses.

One lender suggests we not aim anger over this mess at ALL banks.
The danger is that we will punish healthy banks for the sins of failed banks. Most bankers have behaved responsibly throughout the crisis. This is the wrong time to tie their hands. Instead, we need these banks to get back to their chartered roles: to provide financial resources to consumers and businesses — large and small, new and old.

But who wants them? Dubai, the country built as a mega-resort, thinks it can just sell more debt to repay existing. So irresponsible, do they think they're US?
The cost of protecting against a default on Dubai’s bonds for five years has fallen 70 percent from a two-year high in February, ranking it between Lithuania and Lebanon, data compiled by Bloomberg show. A successful repayment of the Islamic bond, on which investors were concerned Nakheel may default after a slump in property prices, will make it easier for banks to reschedule $12 billion of Dubai World’s debt that mature during the next three years, the bankers said.

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