STOCK MARKET WATCH, Friday 3 February

[ozymandius]

Friday February 3, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1081 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1870 DAYS
WHERE'S OSAMA BIN-LADEN? 1570 DAYS
DAYS SINCE ENRON COLLAPSE = 1531
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 February 2, 2006

Dow... 10,851.98 -101.97 (-0.93%)
Nasdaq... 2,281.57 -28.99 (-1.25%)
S&P 500... 1,270.84 -11.62 (-0.91%)
30-Year Bond 4.70% -0.02 (-0.32%)
10-Yr Bond... 4.56% UNCH (UNCH)
Gold future... 576.80 +2.80 (+0.49%)






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

[EuroObserver]

1. Tokyo stocks retreat following overnight falls in U.S. shares

(Kyodo) Tokyo stocks retreated Friday following overnight declines in U.S. shares, but trading was slow with a wait-and-see mood ahead of the release later in the day of a U.S. employment report for January.

The 225-issue Nikkei Stock Average dropped 50.91 points, or 0.30 percent, to 16,659.64. The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange fell 3.06 points, or 0.18 percent, to 1,707.96.

Tokyo stocks traded lower throughout the day after shares in New York ended Thursday sharply lower on a wide front due partly to growing jitters about inflation.

As investors refrained from making major bets ahead of the release of the U.S. employment report, Tokyo shares moved narrowly, keeping the benchmark Nikkei in a range of less than 100 points.
...
After the benchmark Nikkei ended at a new five-year, five-month high Thursday, the Tokyo market was also weighed on by concerns over the recent fast pace of the index's recovery following a sell-off triggered by public prosecutors' raid of Livedoor Co. in mid-January for alleged securities law violation, brokers said.

Trading volume on the TSE's main section shrank to 2,123.71 from Thursday's 2,506.73 million shares. Declining issues led advancing ones 880 to 701, with 91 shares ending unchanged.

Among the major decliners were oil and mining issues, following overnight falls in crude oil futures in New York on the anticipation that it will reduce the value of their inventories. Nippon Oil, Cosmo Oil and Inpex all skidded lower.
...
The TSE's Second Section index was up 11.33 points, or 0.21 percent, to 5,296.41 on a volume of 115.66 million shares. In Osaka, the near-term March Nikkei 225 index futures contract was down 10 points to 16,690 /more...

[EuroObserver]

11. Seoul, Singapore, Hong Kong markets down

S.Korean shares suffer biggest drop since Oct 2004
SEOUL, Feb 3 (Reuters) - Seoul shares suffered their biggest one-day percentage fall in more than a year on Friday as growing worries that rising inflation would lead to higher interest rates in the United States hit Hyundai Motor and other exporters. The concerns, sparked by a report showing rising U.S. labour costs, came as investors were already worried that a recent surge in the South Korean won <KRW=> would hit profits at the country's exporters.

Facing growing uncertainties, investors shifted to dividend-paying defensive stocks such as mobile operator SK Telecom Co. (017670.KS: Quote, Profile, Research).

The benchmark Korea Composite Stock Price Index (KOSPI) <.KS11> fell 2.98 percent to end at 1,333.50. The index lost 3.7 percent on the week after falling for the past three sessions in a row.

"The inflation risk in the United States looks like it's growing, and it's having a negative impact on sentiment," said Kim Jun-nyun, a fund manager at Chohung Investment Trust Management.
...
A recent surge in the won currency to its highest level since November 1997 has also added pressure on exporters. Data earlier this week showed exports in January grew at their slowest annual pace in nearly three years. /more...

Singapore Shares End Down On Across-Board Profit-Taking
SINGAPORE (Dow Jones)--Singapore shares ended lower Friday on profit-taking after sharp gains, with investors turning cautious following an overnight drop on Wall Street. After hitting six-year highs during the previous two sessions, the Straits Times Index ended down 9.67 points, or 0.4%, at 2431.72. Decliners led advancers 319 to 292, while volume fell to 1.60 billion shares from Thursday's 1.78 billion.

A trader in a local brokerage said it was difficult to predict the market movement because of the Middle East where "so many things are happening." However, he added that Asian markets looked "quite strong and sustainable."

"Both Japan and Hong Kong have seen some fairly healthy corrections," he said. "So the upcoming week should be all right for the local market."
/more...

Asian Shares End Mostly Down Tracking Wall Street
... The blue chip Hang Seng Index fell 261.96 points, or 1.67%, to 15,429.73.

Traders said investors took profits after the market's strong run in January, when the Hang Seng Index rose 5.8%. /more, other Far-Eastern markets...

[EuroObserver]

12. Research body expects Japan population to fall to 88.33 mil. in 2050

(Kyodo) _ Japan is likely to see its population drop to 88.33 million in 2050, a decrease of 37.79 million from 2005, the Japan Aging Research Center said Friday.
...
The JARC made the forecast on the assumption that a woman will give birth to an average of 1.16 children in 2020, down from 1.28 in 2004. Given the assumption, Japan's population will fall from 126.12 million in July 2005 to 100.05 million in 2040 and to 94.15 million in 2045, before reaching 88.33 million in 2050, which is comparable with the population in 1955, according to the JARC.

The center also forecasts a further decline in the nation's population to 37 million in 2100, about the same level seen during the Meiji era (1868-1912).

/more...

[EuroObserver]

15. Hitachi's Profit Plunges 79 Percent

Hitachi said Friday its net profit plunged 79 percent in the quarter through December due to losses at a plasma display subsidiary and because of a big gain the previous year from securities sales. The Japanese electronics maker reported group net profit of 5.49 billion yen ($46 million) for the fiscal third quarter, down from 26.64 billion yen the same period the previous year.

Sales rose 6 percent to 2.26 trillion yen ($19 billion) for the quarter from 2.12 trillion yen on healthy demand for flat panel TVs, software services and liquid crystal displays. But earnings were hurt by losses at a plasma display subsidiary after Tokyo-based Hitachi took over the company it had run with Fujitsu last year. Fujitsu Ltd. abandoned that business amid intensifying competition and falling panel prices.
...
Revival efforts at Japanese makers are producing mixed results amid intensifying competition from Asian rivals like South Korea's Samsung Electronics Co. Booming sales in flat-panel TVs have lifted earnings at Matsushita Electric Industrial Co., which makes Panasonic brand products and dominates plasma display TVs, and Sharp Corp., the world's largest liquid-crystal display TV maker by shipments. Sony Corp., which fell behind in flat-panel TVs, is making small steps toward a turnaround, reporting a 17.5 percent rise in quarterly profit and revising its fiscal year outlook to a profit from an earlier projected loss. NEC Corp. and Sanyo Electric Co. are still struggling, but Toshiba reported a big gain in profit and Fujitsu swung back into the black during the quarter after suffering losses the same period last year.

Hitachi shares, which have gained by a third since May last year, slipped 1.5 percent to close at 809 yen ($6.80) in Tokyo, where trading ended shortly before earnings were announced.

/more...

[ozymandius]

2. WrapUp by Martin Goldberg

Some Markets Even More Overbought Than Precious Metals

The precious metals sector is red hot. How red hot? Cramer upgraded both Gold Corp. (GG) and Pan American Silver (PAAS) with a big Bou-Ya on his show on Monday. I’m hearing anecdotes about how much new Rydex Fund money is going into the precious metals sector and how this is a contrarian indicator. Many excellent and popular technicians are correctly suggesting that the precious metals sector is overbought and “due” for a correction. I’ve heard one intelligent and articulate analyst compare the action in precious metals to that of Nasdaq stocks in 1999. Numerous are suggestions that the public is discovering precious metals and this is a contrarian indicator. Are precious metals and their stocks overbought? Maybe. Is this a reason to sell? Not necessarily! In these financial markets, there is very little on which one can depend. Stocks are overpriced by any historical metric, and their valuations are being floated worldwide by speculative and liquidity-based buying. Bonds are in an intermediate term trading range with no clear direction and it seems as if their directions are being determined by central banks and not free markets. The one “sure thing” in today’s markets is that gold and precious metals and their stocks are in a bull market. In addition to being in a technical bull market, there are strong fundamental cases for precious metals and precious metals stocks. Governments are continuing to print more paper currencies attempting to stimulate their respective economies and manipulate the true value of the massive amounts of US debt. Weakening currencies are bullish for precious metals and PM stocks. Both the technical and fundamental trends for precious metals are now strong and therefore, good for investing for the long term. In my view, investors should avoid trading out of their long term positions for a shorter term gain.

-cut-

If the HUI was overbought and due for a correction a month ago, it must be super overbought and really due for a correction now! So would it be wise to now sell? After all, isn’t it “the crowd” that is now piling into precious metals supposed to be wrong most of the time?

Not so fast! If one puts any credence in Elliott Wave theory, it is clear that in the long term (years) precious metals are in the 3rd wave (2nd UP wave) of a 5-wave bull market. With that in mind, what are the characteristics of the 3rd wave we are in now? Here’s how Frost and Prechter describe 3rd waves in their book Elliott Wave Principle: Key to Market Behavior (page 78):

“Third waves are wonders to behold. They are strong and broad, and the trend at this point is unmistakable. Increasingly favorable fundamentals enter the picture as confidence returns. Third waves usually generate the greatest volume and price movement and are most often the extended wave in a series. It follows, of course, that the third wave of a third wave, and so on, will be the most volatile point of strength in any wave sequence. Such points invariably produce breakouts, “continuation” gaps, volume expansions, exceptional breadth, major Dow Theory trend confirmations and runaway price movement, creating large hourly, daily, weekly, monthly, or yearly gains in the market, depending on the degree of the wave. Virtually all stocks participate in third waves. Besides the personality of B waves, that of third waves produces the most valuable clues to the wave count as it unfolds.”

more...

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

[EuroObserver]

3. European stocks - Factors to watch on Feb 3

PARIS, Feb 3 (Reuters) - European shares were set for a mixed opening on Friday, with U.S. payrolls dominating markets' psyche amid worries that rising labour costs and inflationary pressures will prompt more U.S. interest rate hikes, keeping the dollar near a seven-week high and holding back appetite for equities.

Oil prices were also in the spotlight as the United Nations' nuclear watchdog still looked set on Friday to report Iran to the U.N. Security Council over fears it might be after atomic bombs. Crude prices held around $65 a barrel.

U.S. non-farm payroll numbers are due out at 1300 GMT. The median forecast in a Reuters poll of economists is for the data to show 240,000 jobs were added in January, though forecasts were as high as 300,000. The jobs release will be followed by the University of Michigan's January survey final at 1445 GMT and the U.S. ISM January non-manufacturing at 1500 GMT. Economic data due in Europe includes the eurozone services January PMI due at 0900 GMT, and Eurozone December retail sales at 1000 GMT.

On the corporate results front, British Airways (BAY.L: Quote, Profile, Research) is reporting profit figures, along with Swedish truck maker Volvo (VOLb.ST: Quote, Profile, Research). Technology shares will be in the spotlight after Amazon (AMZN.O: Quote, Profile, Research) said net profit fell in its critical fourth quarter, which includes the holiday selling season. Shares in the Internet retailer tumbled 8 percent after the bell. Adding to the sector's woes, the Japanese electronics maker Hitachi Ltd (6501.T: Quote, Profile, Research). posted a 79.4 percent slide in quarterly net profit on Friday, hit by loss-making hard-disk drive operations, but it stood by a full-year outlook that exceeds market expectations.
...
* Spread betters in London are calling the FTSE 100 <.FTSE>, CAC 40 <.FCHI>, and DAX <.GDAXI> indexes between 5 points lower and 10 points higher.

/more... MARKETS, COMPANY NEWS...

European bourses set for mixed open
...Crude oil prices fell below $64 a barrel overnight as fears about UN sanctions on Iran eased following comments from European leaders. Although Nymex crude regained some ground on Friday, European oil stocks could feel the pressure.

[EuroObserver]

4. Europe: positive opening

Swiss SMI up 0.18% at CHF 7800.30 09:14:11 CET
CAC 40 opens up 0.4% at 4,946.1 in Paris 08:06 GMT
Xetra Dax 30 opens up 0.4% at 5,670.0 in Frankfurt 08:06 GMT
FTSE 100 opens up 0.3% at 5,764.8 in London 08:05 GMT

FTSE up on utility bid talk, but Centrica slips
LONDON, Feb 3 (Reuters) - Britain's top shares opened higher on Friday with utility stocks such as Kelda (KEL.L: Quote, Profile, Research) rising on resurgent takeover talk in the sector, but Centrica (CNA.L: Quote, Profile, Research) fell after Gazprom played down Thursday's talk the Russian firm will bid.

By 0832 GMT, the FTSE 100 share index <.FTSE> was 14.2 points higher at 5,761.5 points. On Thursday, the index closed, down 54.3 points at 5,747.3 points.
...
Adding to weight on the shares, the Financial Times newspaper reported any bid from Gazprom would face "robustly scrutiny" by the UK government. Nonetheless, other companies in the utility sector gained on the prospect of a move by the Russian firm into the UK market, coupled with expectations other bids could emerge. The entire sector, including water and energy firms, has been touted as ripe for takeover activity in recent months. Scottish & Southern Energy (SSE.L: Quote, Profile, Research) gained 1 percent, Scottish Power (SPW.L: Quote, Profile, Research) added 1 percent, Kelda (KEL.L: Quote, Profile, Research) rose 2.4 percent and National Grid (NG.L: Quote, Profile, Research) advanced 1.3 percent.

Elsewhere, shares in Europe's third-largest airline British Airways (BAY.L: Quote, Profile, Research) rose 1.1 percent after it posted third-quarter operating profit up 29 percent, ahead of expectations with strong passenger numbers helping to offset the rising cost of fuel. /more...

European bourses up as utilities power higher
European equities moved modestly higher on Friday, as earnings and sales updates from a number of companies buoyed sentiment, helping offset lower oil stocks as crude prices fell.

In early trade, the FTSE Eurofirst 300 added 0.2 per cent to 1,322.63, while Frankfurt’s Xetra Dax added 0.5 per cent to 5,675.11. In Paris, the CAC 40 gained 0.4 per cent to 4,948.29 and London’s FTSE 100 climbed 0.1 per cent to 5,755.5. /more...

London lifted as BA profits soar
London equities reclaimed positive territory on Friday after British Airways’ third quarter numbers beat expectations. The FTSE 100 was 0.3 per cent higher at 5,760.8, making up about one third of the ground lost in a late sell off during the previous session. The mid-cap FTSE 250 inched 0.1 per cent higher to 9,246.4.
...
In London, upbeat third quarter revenue news from British Airways gave the airline’s shares extra altitude. Pre-tax profit in the period came in at £164m from £151m in the same period a year ago, a stronger-than-expected rise. Stronger first class ticket sales helped the performance, and the company pledged not to increase surchages levied on its passengers despite a 28 per cent rise in fuel costs. /more...

[EuroObserver]

6. Markets react to missing Red Sea ferry: "Terrorism fears"

Terrorism? or military action? (weather/visibility is "bad"). BBC Report: Lifeboats and bodies have been seen..

Swiss franc up after contact lost with ferry
LONDON, Feb 3 (Reuters) - The Swiss franc rose around 15 ticks versus the dollar and hit the day's highs against the euro after coastal stations lost contact with a ferry carrying some 1,310 mainly Egyptian passengers from the Saudi port of Jeddah to Safaga on Egypt's Red Sea coast. Bund and U.S. Treasury futures also rose to the day's highs as the Red Sea ferry news attracted some safe-haven flows due to fears that the incident might be linked to terrorism.

"There a little bit of a knee-jerk reaction to the news," said Ian Stannard, currency strategist at BNP Paribas. "Recently the market has been shrugging off rising risks on geo-political tensions but over the past couple of days that's been creeping back in." /more...

European markets move on Red Sea ferry news
LONDON, Feb 3 (Reuters) - European shares lost slight gains and Bund and Treasury futures rose to day's highs on Friday after security sources said coastal stations had lost contact with a ferry carrying some 1,310 passengers in the Red Sea.

The FTSEurofirst 300 index <.FTEU3> of leading European shares was 0.04 percent down at 1,319.42 points having been slightly higher before the news. /more...

[EuroObserver]

18. "We don't know yet what happened"

Fri Feb 3, 2006 1:03 PM GMT
CAIRO (Reuters) - A ferry carrying 1,300 passengers sank in the Red Sea overnight on a trip from Saudi Arabia to Egypt and search and rescue teams picked up dozens of dead bodies from the water, official sources said on Friday.

Some survivors were also brought ashore at the Egyptian port of Safaga, where the ferry had been scheduled to arrive at 2 a.m. (midnight British time) on Friday morning, they added.
...
"Dozens of bodies were picked up from the sea ... they were from the ferry," a police source at the port of Safaga said. Egyptian aircraft also saw bodies floating in the water, other security sources said.
...
Coastal stations did not receive any SOS message from the crew, said Adel Shukri, the head of administration at the shipping company, which is based in Cairo. The weather had been very poor overnight on the Saudi side of the Red Sea, with heavy winds and rain, he said. But visibility should have been good out at sea, he added.
...
A Saudi border control official in Jeddah said: "We don't know yet what happened -- if it sank, or overturned, or what."

/more...

[UpInArms]

29. Ferry carrying 1,300 sinks in Red Sea

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=newsOne&storyID=uri:2006-02-03T122229Z_01_L0317771_RTRUKOC_0_US-EGYPT-FERRY-AGENCY.xml

CAIRO (Reuters) - A ferry carrying 1,300 passengers sank in the Red Sea overnight and some survivors reached the Egyptian port of Safaga, official sources said on Friday.

A search and rescue plane spotted a lifeboat near where the 6,600-tonne Al Salam 89 last had contact with shore at about 10 p.m. (2000 GMT) on Thursday evening, one official said.

Rescue boats brought some survivors to Safaga, where the ferry was meant to arrive on Friday morning, one security official said.

But Egyptian aircraft also saw bodies floating in the water, security sources said.

Most of the passengers were Egyptians working in Saudi Arabia, officials said, but at this time of year many Egyptians are still on their way home from the annual pilgrimage to Mecca.

...more...

[EuroObserver]

17. European bourses hopeful pending US data

Swiss SMI up +0.61% at CHF 7833.48 13:17:35 CET
DAX up +0.41% at 5,672.87 13:50 CET
CAC40 up +0.08% at 4,932.00 13:50 CET
FTSE100 up +0.13% at 5,754.80 12:50 GMT

London shares flat ahead of US data
London equities were flat on Friday as investors paused for breath at the end of a hectic week and amid caution ahead of US employment data due later in the session.
...
Smiths Group fell 1.8 per cent to £10.10½ as investors took profits in the aerospace and engineering company following an upbeat trading statement.

Shares in British Airways fell 1.2 per cent to 320p, wiping out initial gains after third-quarter profits at the airline beat expectations.
...
Royal Dutch Shell was a drag on the main index as analysts digested the oil giants fourth-quarter figures released on Thursday. The B shares 1.3 per cent to £19.31. Morgan Stanley cut it rating on the oil major form “overweight” to “underweight”, saying the company’s share buyback scheme was “disappointing”. “One of the key attractions of the stock for us was its potential to surprise on the upside in cash return; it has just surprised on the downside,” analysts said.

Centrica, which closed 11 per cent higher on Thursday after Gazprom confirmed its interest in the company, eased 1.3 per cent to 295¾p as investors took profits.

Aegis gained 3 per cent to 131 after Merrill Lynch initiated coverage of the advertising group with a ‘buy’ rating and a 145p price target. “Aegis is a highly strategic asset for all agency peers and will remain an acquisition target until its fate is decided,” the broker concluded, tipping French group Havas to eventually take over the UK group. /more...

European bourses up as utilities power higher
European equities moved modestly higher on Friday, as earnings and sales updates from a number of companies buoyed sentiment, helping offset lower oil stocks as crude prices fell.

By midday, the FTSE Eurofirst 300 added 0.2 per cent to 1,322.28, while Frankfurt’s Xetra Dax added 0.5 per cent to 5,679.7. In Paris, the CAC 40 gained 0.2 per cent to 4,937.17 and London’s FTSE 100 climbed 0.1 per cent to 5,754.9.
...
Crude oil prices fell below $64 a barrel overnight as fears about UN sanctions on Iran eased following comments from European leaders. Although Nymex crude regained some ground on Friday, European oil stocks were under pressure.

Royal Dutch Shell, which reported record profits on Thursday, but said it had struggled to replace reserves, fell 0.7 per cent to €27.20 as Morgan Stanley downgraded the stock to “equal weight” from “overweight”. Elsewhere in the sector, Spain’s Cepsa fell 1 per cent to €43.58, Norway’s Statoil shed 0.8 per cent to NKr180, while Austria’s OMV lost 1.9 per cent to €55.10.

Fortum, the Finnish power utility, gained 3.9 per cent to €19.39 after it reported forecast-beating fourth-quarter operating profit, up 32 per cent, thanks to higher electricity prices.

Meanwhile, as they awaited the decision from the Spanish government on the details and conditions of their merger, Endesa, the country’s largest power provider, gained 0.6 per cent to €24.96, while Gas Natural added 1.9 per cent to €24.80. The government called a press conference for 1530 GMT, but was expected to announce its decision at around 1300 GMT.

Veolia Environnement, the French water utility, reported a 12.2 per cent rise in full-year sales and reaffirmed its 2005 targets, including 8 per cent growth in turnover and double-digit operating profit growth. Its shares were 0.9 per cent higher at €42.58.

The cost of new product launches punched a dent into fourth-quarter profits at Swedish truckmaker Volvo. The company’s pre-tax earnings missed expectations as launch costs and production starts hit its European plants, thanks largely to stricter engine emission regulations. The shares fell 8 per cent to SKr338. /more...

[EuroObserver]

33. Dollar surges, bonds and markets sag as US data fans rate fears

Swiss SMI up +0.55% at CHF 7828.81 15:02:27 CET
CAC40 down -0.19% at 4,918.59 15:14 CET
DAX down -0.17% at 5,640.24 15:14 CET
FTSE100 down -0.12% at 5,740.30 14:14 GMT

Fri Feb 3, 2006 9:12 AM ET
LONDON, Feb 3 (Reuters) - The dollar hit multi week highs on Friday and U.S. government bonds fell after data showed the U.S. jobless rate at a 4-1/2 year low and fanned wage-inflation worries, boosting the case for more U.S. rate rises.

European shares and U.S. stock indexes turned negative as worries about further potential U.S. monetary tightening helped to offset confidence in the continuing robust health of the world's biggest economy.

Data showed U.S. employers added a smaller-than-forecast 193,000 new jobs in January. But job growth in each of the five prior months was pushed up as part of a broader annual revision and the January unemployment rate dropped from 4.9 percent to 4.7 percent -- its lowest level since July 2001. The report also showed average U.S. earnings rising by 3.3 percent in the year to January, which was the largest 12-month increase since February 2003 and reinforced data on Thursday showing a pickup in unit labour costs.

"What we see here is a labor market that is getting tighter by the minute," Stanley Nabi at Silvercrest Asset Management in New York said. "Those who said the Fed has only one or no more increases coming are going to revise their opinions. The Fed is not finished, it probably has one or two more increases from here," he said.
...
The FTSEurofirst300 index <.FTEU3> of leading European shares slipped 0.1 percent.

/more...

[EuroObserver]

39. Main European markets hit tank

Name Value Change % Change Time
UK
FTSE-100 5,740.70 -6.60 -0.11 2:25 PM
FTSE-ALL SHARE 2,923.40 -3.05 -0.10 2:25 PM
Europe
DJ EURO STOXX50 3,660.73 -16.32 -0.44 3:25 PM
FTSE EUROTOP 2,817.12 -5.96 -0.21 2:25 PM
Germany
DAX 5,630.68 -18.92 -0.33 3:25 PM
France
CAC 40 4,914.74 -13.15 -0.27 3:25 PM

[EuroObserver]

84. Bourses staged a slight recovery but earnings disappoint

Swiss SMI up 0.70% at CHF 7840.79 17:31:21 CET
CAC 40 closes up 0.2% at 4,937.56 in Paris 16:41 GMT
Xetra Dax 30 closes up 0.1% at 5,657.12 in Frankfurt 16:40 GMT
FTSE 100 closes up 0.2% at 5,759.3 in London 16:42 GMT
FTSE 250 closes up 0.1% at 9,242.2 in London 16:40 GMT
FTSE Eurofirst 300 flat at 1,319.57 in closing exchanges in London 16:30 GMT

Europe shares end flat; drug gains offset tech drop
LONDON, Feb 3 (Reuters) - European shares ended flat on Friday as Novartis's (NOVN.VX: Quote, Profile, Research) rally boosted drug stocks, offsetting a lacklustre performance from technology firms such as Nokia (NOK1V.HE: Quote, Profile, Research) and resource heavyweights.

Steelmaker Arcelor (CELR.PA: Quote, Profile, Research) jumped as investors continued to hope Mittal may raise its bid, while Sweden's Volvo (VOVb.ST: Quote, Profile, Research), British Airways (BAY.L: Quote, Profile, Research) and Norway's Norske Skog (NSG.OL: Quote, Profile, Research) tumbled as their earnings or outlooks disappointed investors.

"What we've seen in Europe is more or less in line, but I don't think we'll have such a big number of upgrades," said Martin Sirch, fund manager at HSBC Trinkaus in Dusseldorf. "It's widely expected that growth will come down, in almost all sectors you have earnings momentum coming down. A slowdown in earnings growth is expected and is very possible."

By 1640 GMT, the pan-European FTSEurofirst index <.FTEU3> of 300 leading shares was 0.02 percent lower at an unofficial close of 1,319.57. /more...

Europe hands back early gains to close flat
(FT) The Eurofirst 300 hit a 4½ year high on Wednesday of 1,333.32, but weakness in oil stocks pared the gains. The Eurofirst 300 ended the week almost unchanged at 1,319.57. Endesa, Spain’s largest power provider, rose 5.7 per cent to €24.89. The Spanish government yesterday approved Gas Natural‘s bid, with a number of conditions. As expected the merged company would have to divest around 4,300 megawatts of generation assets, while agreeing not to acquire further generation capacity in the two years following completion. Gas Natural shares added 5.5 per cent to €24.70. /more...

London closes higher after volatile trading session
(FT) London equity markets closed in positive territory on Friday having spent most of the afternoon in the red on fears over US interest rates rises following the release of non-farm payroll data. Rolls-Royce was the biggest gainer on the FTSE 100 index closing 3.4 per cent firmer at 444.5p ahead of reporting its full-year numbers on Thursday. Persimmon made gains as the house-building sector was cheered by strong first-half results from Bellway. Persimmon closed 3.4 per cent higher at 1314p. In the wider market, the FTSE 100 closed up 12 points, 0.2 per cent at 5,759.3 while the mid-cap FTSE 250 finished 7.5 points, or 0.1 per cent to the good at 9,242.2.

FTSE ends higher despite Shell, Wall Street drag
LONDON, Feb 3 (Reuters) - UK stocks ended slightly higher on Friday, led by housebuilder Persimmon (PSN.L: Quote, Profile, Research) on optimism about the sector outlook, although more losses for oil major Royal Dutch Shell (RDSa.L: Quote, Profile, Research) after its results and a drop on Wall Street kept market gains to a minimum.

Aerospace and defence group Smiths (SMIN.L: Quote, Profile, Research) was another feature on the downside, ending off 4.5 percent as traders said they were concerned about extra costs. "People are worried about cost overruns on the 767 tanker and there are some issues on more R&D capitalised on the balance sheet than originally anticipated," one trader said. Smiths Group said markets had been kept up to speed on the issue.
...
"I do like the environment for company profits at the moments and therefore, by extension, equities," said Hector Kilpatrick, a fund manager at SVM Asset Management. "The scope for M&A activity in the next quarter is quite high and I think that will underpin any setbacks that we'll see." /more...

[EuroObserver]

10. Virus halted Moscow's RTS exchange on Thursday

MOSCOW, Feb 3 (Reuters) - A computer virus disrupted trading on Moscow's Russian Trading System (RTS) stock exchange on Thursday, the exchange said in a statement on Friday.

The virus, which knocked out trading on all of its three markets between 1315 and 1420 GMT on Thursday, was a deliberate attack, RTS said.
...
The virus struck the exchange the day before a destructive e-mail was expected to attack computers worldwide. Security experts have warned that the "Kama Sutra" worm is timed to attack on Feb.3, freezing computers and deleting files.

/more...

[EuroObserver]

73. Sharp increase in UK bankruptcies and home reposessions

DU threads here.

[54anickel]

92. Mortgage Delinquencies Increasing (California)

The number of default notices sent to the state's homeowners is up 15.6% in 2005's last quarter from a year earlier

http://www.latimes.com/business/la-fi-default3feb03,1,6677766.story?coll=la-headlines-business

The number of default notices sent to California homeowners rose in the last three months of 2005 as the rate of price increases slowed, a real estate research firm said Thursday.

The delinquency notices serve as an early indicator of possible foreclosures. Typically, about 5% of homeowners who receive such notices end up losing their homes.

Lenders sent 14,999 default notices to California homeowners from October through December, according to DataQuick Information Systems.

All areas of the state saw a rise in delinquency notices. The counties with the largest annual percentage increase in default notices were Napa, San Luis Obispo, San Francisco, Riverside, Orange and San Diego.

The fourth-quarter total represents a 19% increase over the 12,606 notices sent out in the third quarter and a 15.6% hike over the 12,978 notices sent in the same period in 2004, the La Jolla-based firm said.

more...

[ozymandius]

5. Today's Reports

Feb 3 8:30 AM Average Workweek Jan
Briefing Forecast 33.8
Market Expects 33.8
Prior 33.7

Feb 3 8:30 AM Hourly Earnings Jan
Briefing Forecast 0.3%
Market Expects 0.3%
Prior 0.3%

Feb 3 8:30 AM Nonfarm Payrolls Jan
Briefing Forecast 240K
Market Expects 250K
Prior 108K

Feb 3 8:30 AM Unemployment Rate Jan
Briefing Forecast 4.9%
Market Expects 4.9%
Prior 4.9%

Feb 3 9:50 AM Mich Sentiment-Rev. Jan
Briefing Forecast 93.4
Market Expects 93.1
Prior 93.4

Feb 3 10:00 AM Factory Orders Dec
Briefing Forecast 1.0%
Market Expects 1.0%
Prior 2.5%

Feb 3 10:00 AM ISM Services Jan
Briefing Forecast 60.8
Market Expects 60.0
Prior 61.0

[UpInArms]

20. 8:30 reports tumbling in:

8:30am 02/03/06 U.S. JAN. SERVICE JOBS RISE BY 135,000

8:30am 02/03/06 U.S. JOB GROWTH SEEN IN CONSTRUCTION, RESTAURANTS, HEALTH

8:30am 02/03/06 U.S. JAN. LABOR MARKET PARTICIPATION RATE STEADY AT 66.0%

8:30am 02/03/06 DROP IN U.S. JOBLESS RATE REFLECTS BENCHMARK REVISIONS

8:30am 02/03/06 U.S. JAN. AVERAGE WORKWEEK STEADY AT REVISED 33.8 HOURS

8:30am 02/03/06 U.S. JAN. AVERAGE HOURLY EARNINGS UP 0.4%

8:30am 02/03/06 U.S. NOV., DEC. PAYROLLS REVISED HIGHER BY 81,000

8:30am 02/03/06 U.S. JAN. JOBLESS RATE FALLS TO 4.7%, LOWEST IN 5 YEARS

8:30am 02/03/06 U.S. JAN. NONFARM PAYROLLS RISE 193,000 VS. 248,000 EXPECTED

[UpInArms]

21. U.S. Jan. payrolls up 193,000; jobless rate falls to 4.7%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38751.3546552662-859229177&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The U.S. unemployment rate fell to a 5-year low of 4.7% in January as 193,000 jobs were added to nonfarm payrolls, the Labor Department said Friday. The January payroll figures fell short of expectations of a gain of 248,000, but with upward revisions to November and December of 81,000, the total payroll count was a bit more than expected. The drop in the jobless rate to the lowest level since April 2001 was a surprise: Economists expected the unemployment rate to remain at 4.9%. Average hourly wages rose 7 cents or 0.4% to $16.41. The average work week was steady at 33.8 hours.

[UpInArms]

25. Derivative traders see Jan US payrolls at 253,000 (gamblers wrong again)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T131046Z_01_N03291651_RTRIDST_0_ECONOMY-PAYROLLS-DERIVATIVES.XML

NEW YORK, Feb 3 (Reuters) - Traders in the final of four derivatives auctions bet on Friday the U.S. government's jobs report on Friday will show a 253,000 gain in nonfarm payrolls in January, higher than what economists predicted.

The implied forecast of a seasonally adjusted 253,000 gain in payrolls is a bit below the three earlier auctions, as bets increasingly congregated below economists' expectations.

The median forecast in a poll of economists conducted by Reuters on Jan. 27 was 240,000. The Labor Department's report will be released on Friday at 8:30 a.m. (1330 GMT).

In Friday's auction, traders put a 22 percent probability on a result 150,000 and 200,000 -- up from a 17.9 percent probability for the same range in the previous auction on Thursday afternoon.

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.

...more...

[WhiteTara]

65. Isn't December a tradtionally high

employment month? Everyone is hiring for Christmas?

[UpInArms]

76. I believe that this past December was impacted by corps

unloading employees - mostly in the auto sector :eyes:

[EuroObserver]

30. Benchmarks? Revisions?

Jobless rate revised down via 'benchmark changes'; Nov & Dec payrolls revised up; 70% of nonfarm payroll growth in services, especially construction, restaurants & healthcare; Labor market non-participation 34% but 'benchmarked' jobless rate 4.7%.

Hmmm. This is good news?

[UpInArms]

34. By revising the way that employment numbers are calculated,

this mal-administration has made the un-employment number completely useless.

http://www.marketwatch.com/news/story.asp?guid=%7BB804D229%2DAD4D%2D4394%2DB9A6%2D994C270B16D5%7D&symbol=&siteid=mktw

The decline in the jobless rate was due to benchmark revision of the household survey at the beginning of the year. Total employment was about 300,000 higher than in December, while unemployment was about 300,000 lower at 7 million. Read the full report. (weird new calculations "explained" on Page 5)

Direct comparisons between December and January are not possible because of a break in the household data series. In essence, the government lumped all the revisions for the past year into one month.

[Roland99]

88. The unemployment rate is a meaningless number. What's the LFPR?

And the Jan. jump in wages can be linked to the typical raise received by most people in Jan.

The avg. work week is well under 40 hours (more of these jobs are part-timers).

Why don't they start tracking who has health insurance, too? You know they won't because that would be one scary-ass number!

[UpInArms]

45. UMich consumer sentiment falls in January to 91.2

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38751.4136036458-859240093&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- U.S. consumer sentiment dipped in January, researchers said Friday. The final January report on the University of Michigan's consumer sentiment index fell to 91.2 from 91.5 in December and 93.4 in mid-January, according to media reports. Economists were expecting sentiment to rise to 93.1 in the final reading. The current conditions index rose to 113.2 from 109.1 in December and 112.0 in mid-January. The expectations index fell to 79.0 from 80.2 in December and 81.5 in mid-January.

[UpInArms]

46. U.S. Dec. factory orders rise 1.1% vs. 0.9% expected

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38751.4170540162-859240677&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Orders for U.S.-made factory goods increased 1.1% in December, led by orders for durable goods and investment in capital equipment, the Commerce Department estimated Tuesday. Shipments posted a strong showing in December, rising 2.2%. Orders for durable goods rose 1.8%, while orders for core capital goods climbed 4.1%. The rise in factory orders was above the 0.9% expected by economists surveyed by MarketWatch.

10:00am 02/03/06 U.S. NOV. FACTORY ORDERS REVISED TO UP 3.3% VS. 2.5%

10:00am 02/03/06 U.S. DEC. FACTORY INVENTORY-SALES RATIO FALLS TO 1.15

10:00am 02/03/06 U.S. DEC. FACTORY INVENTORIES RISE 0.5%

10:00am 02/03/06 U.S. DEC. CORE CAPITAL ORDERS RISE 4.1%

10:00am 02/03/06 U.S. DEC. FACTORY SHIPMENTS RISE 2.2%

10:00am 02/03/06 U.S. DEC. NONDURABLE ORDERS RISE 0.3%

10:00am 02/03/06 U.S. DEC. DURABLE GOODS ORDERS RISE 1.8%

10:00am 02/03/06 U.S. DEC. FACTORY ORDERS RISE 1.1% VS. 0.9% EXPECTED

[UpInArms]

48. US Jan ISM Fell to 56.8% vs 61% (more surprised "economists")

10:03am 02/03/06 U.S. JAN. ISM SERVICES PRICES STEADY AT 67.2% FROM DEC.

10:02am 02/03/06 U.S. JAN. ISM SERVICES NEW ORDERS 56.0% VS 62.2% IN DEC.

10:03am 02/03/06 U.S. JAN. ISM SERVICES EMPLOYMENT 51.1% VS 56.9% IN DEC.

10:01am 02/03/06 U.S. JAN. ISM SERVICES BELOW CONSENSUS 59.5%

10:01am 02/03/06 U.S. JAN. ISM SERVICES 56.8% VS 61.0% IN DEC.

[UpInArms]

50. U.S. service sector growth slows in January-survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T150440Z_01_N03362429_RTRIDST_0_ECONOMY-SERVICES-URGENT.XML

NEW YORK, Feb 3 (Reuters) - The pace of growth in the U.S. service sector slowed more than expected in January, as employment and new orders dropped, according to a report on Friday.

The Institute for Supply Management's services index dropped to 56.8 in January from 61.0 in December, well below Wall Street's median forecast for a decline to 59.5.

A number above 50 indicates growth in the sector.

The services sector makes up about 80 percent of U.S. economy activity, including businesses like restaurants, hotels, hair salons, banks and airlines.

...more...

updated link and story:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T152906Z_01_N03362429_RTRIDST_0_ECONOMY-SERVICES-URGENT-CORRECTED.XML

NEW YORK, Feb 3 (Reuters) - The pace of growth in the U.S. service sector slowed more than expected in January, as employment and new orders dropped, according to a report on Friday.

The Institute for Supply Management's services index dropped to 56.8 in January from 61.0 in December, well below Wall Street's median forecast for a decline to 59.5.

A number above 50 indicates growth in the sector.

The services sector makes up about 80 percent of U.S. economy activity, including businesses like restaurants, hotels, hair salons, banks and airlines.

...more...

[54anickel]

52. Bravo, Commerce Department, for a Sensible GDP Report!

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=51173

Introduction

John and I spend much of our respective analytical time criticizing the accuracy -- occasionally, even the outright honesty -- of the government's economic numbers. Understated inflation and overstated employment growth are a couple areas that are among our favorite targets. But overstated economic growth gets a good deal of attention, as well. After all, the automatic consequence of consistently understating inflation is to consistently overstate the economy's real growth.

So when along came a GDP report that appeared to us to portray more accurately the economy's actual condition, it was at least a mild shock. On the other hand, Wall Street's shock was driven by a materially different reason and motivation. If you are out heavily promoting a "Goldilocks" environment, the last thing you need is a report showing the worst economic growth in three years. In fact, growth that actually came in negative, if you place analytical importance on real final sales. (We do!)

A few highlights:

snip>

Onward

The balance of this missive contains a good deal of numbers and discussion of them. Early on, however, let me point out that the initial or "advance" report on gross domestic product is just that. When the numbers came out last week, the Commerce Department was still in arrears in reporting and even in collecting some critical data. The December trade figures come readily to mind, since the trade deficit played such an important role in last week's lousy GDP performance. (The December trade report is due out next Friday, 2/10.)

Also early on, I want in the strongest way to encourage people who are not familiar with John Williams' work to change that, and quickly. Simply go to John Williams' Shadow Government Statistics and you will find ample explanation of why it is easy today to be so skeptical if not outright cynical about at least the accuracy -- at times, the honesty, too -- of most of the key economic data coming from Washington. This said, you can understand why it borders on amusing that I'm writing a missive claiming there was at least a modicum of sensibility in last week's gross domestic product report from the Commerce Department.

In addition to examining numbers, though, this missive also is a little about the Wall Street (and Washington) culture, which I will address and get out of the way now.

more...

[ozymandius]

7. Oil Prices Fall As Supply Fears Abate

SINGAPORE - Oil prices inched up Friday after slipping below $65 a barrel in the previous session on easing fears about a possible disruption to Iranian oil supply.

-cut-

International Atomic Energy Agency's board, which was deciding whether to refer
Iran, OPEC's second-largest oil producer, to the U.N. Security Council over concerns that it may be seeking to make nuclear weapons.

The IAEA meeting adjourned Thursday without reaching consensus on referring Iran. IAEA officials said they would urge the U.N. body not to take any action against Iran until March.

American officials made similar conciliatory statements that appeared to underscore a desire to seek a diplomatic solution with Iran over its nuclear program. American ambassador to the IAEA, Gregory Schulte, said the U.S. isn't immediately seeking sanctions or other punitive measures against Iran.

more...

[UpInArms]

57. March Crude @ $64.65 bbl - March NatGas @ $8.33 mln btus

10:18am 02/03/06 MARCH CRUDE FALLS 3C TO $64.65/BRL IN EARLY NY TRADING

10:18am 02/03/06 MARCH NATURAL GAS DOWN 1.7C AT $8.33/MLN BTUS IN NY

[UpInArms]

62. Crude prices modestly higher as traders eye Iran - $65 bbl

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38751.4377813194-859244523&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- March crude rose 32 cents to $65 a barrel in New York as traders eyed developments in Iran. The International Atomic Energy Agency is set to vote on whether it will report Iran's resumption of nuclear research to the UN Security Council. A meeting Thursday ended without a decision. "Not only did the IAEA fail to reach a decision to report Iran's nuclear power program to the Security Council, comments from both U.S. and EU played down the threat of immediate sanctions," said Michael Fitzpatrick an analyst at Fimat. But the IAEA will report Iran to the Security Council, BBC News reported Friday, citing comments from diplomats.

[UpInArms]

86. March Crude @ $65.25 bbl - March NatGas @ $8.58 mln btus

12:12pm 02/03/06 MARCH CRUDE TRADES NEAR DAY'S HIGH, UP 57C AT $65.25/BRL

12:12pm 02/03/06 MARCH NATURAL GAS UP 2.8% AT $8.58/MLN BTUS

[54anickel]

91. British fuel rationing threatens U.S.-London flights

http://www.usatoday.com/money/biztravel/2006-02-02-london-fuel-usat_x.htm

WASHINGTON — U.S. airlines are chafing under the added costs of a jet fuel shortage at London Heathrow airport, and travelers to Great Britain may face fewer flight options as a result.
James May, head of the U.S. airline trade group Air Transport Association, said Thursday that No. 2 United Airlines has delayed introduction of a second daily flight from Los Angeles to Heathrow because of fuel issues. Further, May says, United and No. 1 American, the other U.S. airline to fly to Heathrow, may need to curtail service.

"There could be very serious disruptions" in the not-too-distant future, May says.

A Dec. 11 explosion and fire at Buncefield, one of Britain's biggest fuel depots, has reduced jet fuel supplies to Heathrow. Buncefield normally supplies 30% of the fuel sold at Heathrow, the world's busiest international airport. In response to the supply disruption, privately held airport operator BAA imposed rationing rules that U.S. carriers and the U.S. government call unfair. BAA officials couldn't be reached Thursday.

Speaking at an aviation law forum in Washington on Thursday, John Byerly, the U.S. State Department's deputy assistant secretary for transportation affairs, called the rules "self-serving." He said they give British airlines like Virgin Atlantic and British Airways a "home-port advantage."

more...

[EuroObserver]

95. IAEA delays vote to send Iran to Security Council

VIENNA (Reuters) - The U.N. nuclear watchdog deferred until Saturday a vote to report Iran to the U.N. Security Council over fears it is seeking atomic bombs, as the European Union lobbied developing nations to back the measure.

Diplomats said a clear majority on the International Atomic Energy Agency's 35-nation board favoured notifying the council on Iran, but EU diplomats needed more time to persuade as many developing states as possible to vote yes rather than abstain.
...
"We are trying as best we can to secure as broad as possible consensus on the board for reporting Iran," said a diplomat with the one of the sponsoring powers, Britain, France and Germany. "The resolution is being revised," a senior diplomat close to the IAEA said earlier. Asked about the haggling, a Western diplomat said: "The threat (to restrict inspections) is on everyone's minds but we consider it blackmail and if we give in to that, there's no end to it." He said the negotiations with developing states focussed on clarifying a clause in the resolution so that it could not be construed as ending IAEA oversight of Iran's case.

U.S. and EU leaders, aware that Russia, China and developing states on the IAEA board want to avoid a showdown with Iran, the world's No. 4 oil exporter, said on Thursday that reporting Tehran would not end diplomacy or trigger early U.N. sanctions.

Iran's deputy nuclear negotiator warned that involving the Security Council would also kill talks on a Russian offer to defuse the crisis by enriching Iranian uranium to ensure the Islamic Republic cannot divert it for bombs.

/more...

[ozymandius]

8. Bulls or bears on the job on Wall Street?

Disappointing results from Amazon, uptick in oil, pressure stock futures ahead of January employment report.

NEW YORK (CNNMoney.com) - Investors will be watching the January job report for direction to the day's trading.

Stock futures edged higher although a comparison to fair value suggested a lower open for stocks.

-cut-

After the close Thursday, Amazon.com (Research) became the second Internet bellwether to deliver disappointing results, following the earnings miss by Google Tuesday night. Shares of Amazon tumbled 9.5 percent in European trading early Friday.

Stocks also faced pressure from a rebound in oil prices after Thursday's sharp drop on reduced risks of sanctions against Iran over its nuclear program.

more...

http://money.cnn.com/2006/02/03/markets/stockswatch/index.htm

[EuroObserver]

9. Most official statistics are "useless"

LONDON (Reuters) - National statistics in many western countries are mostly worthless because they do not take into account the shift away from manufacturing, a fund manager told Reuters on Thursday.

Many companies in the United States and Europe over the past 10 years or so have opened production facilities in low-cost countries like China, India, Taiwan or Malaysia. But most of the profit accrues to the company that designs and sells the products rather than the company that makes them.

"The way officials measure things has totally broken down. National accounts are based on (trade) flows and are becoming useless for many developed countries," said Charles Gave, founder of Hong Kong-based research and fund management firm GaveKal.
...
The massive U.S. trade deficit is one example of where official statistics could be misleading, Gave said in an interview at a hedge fund event organised by UK-based fund manager, The Fortune Group. "The U.S. trade deficit doesn't mean anything ... The fellows who tell you it's unsustainable don't understand the system," he said. "Anybody who says that a current account surplus means a country is well managed should look at Germany and Japan over the last 10 years ... A surplus could be a reflection of very low return on invested capital."

BIZARRE CONCEPT

/more...

[EuroObserver]

13. Dollar Climbs, Gold Mixed in Europe

The U.S. dollar rose Friday against most other major currencies in European trading. Gold was mixed.

The euro was quoted at $1.2079, down from $1.2098 Thursday. Other dollar rates compared with late rates Monday included: 118.50 Japanese yen, unchanged; 1.2862 Swiss francs, up from 1.2852, and 1.1462 Canadian dollars, up from 1.1445. The British pound was quoted at $1.7762, down from $1.7804.

Gold dealers in London fixed a recommended price of $571.85 bid per troy ounce, down from $572.15 on Thursday. In Zurich, gold traded at $571.90 bid per troy ounce, down from $572.80 on Thursday. Gold rose 95 cents in Hong Kong to close at $572.90

Silver opened in London at $9.86 bid per troy ounce, up from $9.83.

/more...

[EuroObserver]

14. Copper reaches new record, oil ticks up in London

Copper prices broke a fresh record high on Friday in early trade before easing lower by the mid-morning, but remaining above the $5,000 a tonne level. The three month copper price peaked at $5,050 a tonne on the London Metal Exchange, before slipping to $5,005 a tonne, and has already risen more than $750 so far this year.

The three-month LME aluminium price reached a new 17-year high of $2,636 a tonne in early trade, but eased back to $2,626 a tonne by mid-morning London trade.
...
Oil prices were also firmer. IPE Brent for March delivery added 18 cents to $63.06 a barrel in mid-morning London trade. There was a quiet debut for the electronic West Texas Intermediate futures traded in London by ICE Futures, a unit of IntercontinentalExchange. Volumes were just over 1,000 contacts in the new futures contract. ICE’s bigger rival, the New York Mercantile Exchange boosts daily volume for its West Texas Intermediate contract of more than 300,000. March Nymex WTI added 2 cents to $64.90 a barrel in electronic trade.

/more...

[54anickel]

56. Woo-hoo, time to clean out the garage, load up the truck with all

those bags of crushed aluminium cans and head for the recycling center! Might even pull down the old leftover house siding from the rafters that's been collecting dust for nearly 30 years.

I'm gonna be RICH!!!!!

[AnneD]

118. Here in Houston...

people have had siding stolen off their houses!

[EuroObserver]

16. Likelihood of eurozone rate rise strengthens

Europe’s investment upswing and surge in mergers and acquisitions has led to a “remarkable” jump in eurozone bank lending to businesses, according to the European Central Bank. The latest evidence that the economic recovery in the 12-country group is broadening is likely to convince the central bank that it was right to have signalled another rise in interest rates next month. The surge in lending to businesses came as eurozone inflation picked up as expected, largely because of higher oil prices. The annual rate in January reached 2.4 per cent, up from 2.2 per cent, according to Eurostat, the European Union’s statistical unit. The ECB’s latest bank lending survey showed demand for loans or credit lines to business in the last three months of 2005 reached the highest level since the survey began in 2003.

/more...

[UpInArms]

19. daily dollar watch

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

Last trade 89.59 Change +0.18 (+0.20%)

Dollar Treads Carefully Ahead of Payrolls Friday

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/6511_dollar_treads_carefully_ahead_of_payrolls.html

Profit taking in the dollar today ahead of tomorrow’s non-farm payrolls report has helped the EUR/USD recuperate approximately 50 percent of yesterday’s losses. Today’s labor market data points to a strong payrolls report, but with analysts over forecasting payrolls five times over the past year and under forecasting them seven times, the odds are that we will be seeing yet another surprise. Jobless claims for the week ending January 28 fell by 11,000 to 273,000, pushing the four week average to the lowest level since June 2000. Continuing claims also fell to the lowest level since February 2001. Outplacement firm Challenger Gray & Christmas reported a 4 percent drop in corporate layoff announcements between December and January while the Monster.com Employment index hit all-time high of 151. Our non-farm payrolls preview report on www.dailyfx.com covers all of the reason why analysts are forecasting a strong release and that includes warm weather, strong consumer confidence, low claims and an optimistic Beige Book report. So given the lofty consensus expectation, what is the risk for the dollar? The market has already priced in the possibility of a March 28 rate hike, which means that a strong number should only boost the US dollar modestly since an additional rate hike to 5.00% in May at this point is a bit far fetched. This means that even though we would see a dollar rally on a 250k plus number, depending upon the size of the surprise, the sell-off in the EUR/USD could be limited to 1.1970. Alternatively, the market’s expectation is tipped so deep to the favor of a strong release that if payrolls come out below 175k, we could easily see the EUR/USD rally back above its 200-day SMA resistance at 1.2150.

...more...

[EuroObserver]

32. Euro falls under $1.20 in wake of US jobs data

http://yahoo.reuters.com/news/NewsArticle.aspx?storyID=urn:newsml:reuters.com:20060203:MTFH53457_2006-02-03_14-08-42_NYA000014&related=true
Fri Feb 3, 2006 9:09 AM ET
NEW YORK, Feb 3 (Reuters) - The euro fell below $1.20 on Friday, extending a decline triggered by U.S. jobs data that was viewed as generally solid, despite a weaker-than-expected January headline number.

The euro <EUR=> dipped below $1.20, down 0.8 percent from Thursday, trading at $1.1991, according to Reuters data. The dollar also rose 0.5 percent to 119.19 yen <JPY=>, overcoming options-related defense at 119 yen.

Following the jobs data, interest rate futures priced in an increasing chance that the Federal Reserve would raise U.S. rates into mid year, bolstering the dollar.

[54anickel]

93. A Jobs Jamboree Friday! (Today's Pfennig)

http://www.kitcocasey.com/displayArticle.php?id=527

snip>

So... We could see dollar strength heading into the weekend... I would certainly look to see if it affects the Canadian dollar / loonie... I've been telling people down here that ask me about buying loonies that they should see if there is a pullback... A dip... A mini-correction to maybe 86 cents, which would be a much better level to buy... But if we don't see any opportunity today, (if the Jobs # is as strong as expected) than you had better not wait, because this locomotive has left the station and you might miss hopping aboard as it goes by!

You know... Late last week, I told you about a former Fed Reserve Bank President coming clean and talking about the imbalances in the world and how the U.S. dollar was heading for tough times... Well... I see where another semi-official person has spoken out... Let's listen in to see what he has to say!

This is: Tim Adams, the U.S. Treasury's top international official speaking about the IMF's failure to stop these imbalances... "A strong IMF role on exchange rate issues is central to the stability and health of the international economy, the fund's leaders should endorse such an enhanced role for the IMF, restoring its central role on exchange rates."

Ok... What he's talking about here is the IMF's failure to step in and force China to float their currency... So... When you circle the wagons, it all comes back to the fact that U.S. officials are in dire need of a weaker dollar... They are begging for it! This is absolutely a message that I don’t think the markets get the picture... Well... At least not now... They will eventually... And some loud mouth will start doing a Chicken Little imitation and claiming that he was the first to see the coming of a weaker dollar! Nonsense! We all know the truth!

[54anickel]

94. Is the Declining Dollar Causing High Oil Prices?

http://www.kitcocasey.com/displayArticle.php?id=525

All kinds of theories have been floated over the past few years to explain the rapidly rising price of oil. But few analysts have noted that expensive crude might not be a function of supply and demand, but rather a simple function of inflation.

Since the younger Bush took office, the U.S. has been frantically printing money to stave off recession and keep the bloated American economy from collapsing. Fiat dollars have made their way around the world and now constitute the major foreign currency holdings of most countries. Central banks in China and Japan hold an estimated combined total of $1.3 trillion. With the modern equivalent of printing presses going flat-out, the world supply of money has almost doubled since 2000, from less than $2.5 trillion to just below $4.5 trillion.

Interestingly, as money supplies have increased, so too have oil prices. While there are certainly other factors at work, it is hard to ignore the correlation between the doubling of the money supply and the rise in crude.

Is it just coincidence, or could soaring energy prices be more a function of Alan Greenspan’s whims than of Saudi Arabia’s geology? The increase in oil has indeed come at a time when prices for almost everything else have headed skyward. Houses, copper, Starbucks coffee… you name it, and chances are it’s a lot more expensive than it was five years ago. (The exception is Wal-Mart consumer goods, which have become ridiculously cheap because of pennies-an-hour Chinese labor… itself a symptom of the over-inflated dollar.)

All of which suggests that inflation may be a much larger factor in the current crude price than most investors realize. Reports in mid-2005 from the Shanghai Securities News, in fact, suggested that China was already “exploring ways to use some of its huge foreign exchange reserves to buy imported oil.”

snip>

The other implication is that real supply-and-demand problems may not yet be fully priced into the oil market, even with crude at $65. In fact, the ratio of the oil price to world money supply currently sits near its historical average (represented by the green line). That is, crude is not overly expensive, given the amount of money in the world.

more...

[54anickel]

113. Moneyization #20

http://www.kitco.com/ind/Schmidt/feb022006.html

snip>

Analysts and writers tend to know which of the U.S. deficits is being discussed. Readers often do not, and try to combine them in one set of thoughts. Questions on the U.S. deficits come in on a regular basis from readers and concerned investors, and deserve some attention. The U.S. has three important deficits, the current account deficit, the deficit of the national government and the savings deficit. While they are indeed related, one relationship at a time is an easier approach. The current account deficit includes the trade deficit, and some other transactions. It is the net transfer of money from the U.S. to foreigners for essentially buying more foreign goods than the U.S. sells to foreign consumers. That process transfers wealth from the U.S. to foreign producers.



The danger in this current account deficit of the U.S. is that it is large, and growing larger. In the first graph is plotted the dollar size of the U.S. current account deficit using bars and the left axis. Again, the current account deficit is essentially the trade deficit. Also plotted is the more important metric, that annual deficit as a percentage of GDP using triangles and the right axis. As is readily apparent, the absolute size and relative size of the U.S. imbalance in trade continues to grow.

How does this deficit relate to the deficit of the U.S. government, about $600 on annual basis? While a connection exists in economic theory, the more important matter is that this governmental deficit has been financed by selling bonds to foreign investors to "soak up" those dollars being sent abroad to foreign producers. In a world without massive U.S. government bond issuance, foreign investors would have had no choice but to sell those $800 million each and every year in the foreign exchange market. That action would have sent the dollar crashing to unimaginable relative lows against other national monies.

The governmental deficit at the national level in the U.S. created the liquid debt into which those foreign owned dollars from the trade deficit could flow. Without that debt, the U.S. dollar would have already plunged to unimaginable lows against other national monies. The wisdom of the U.S. government financial deficit is in part separate from the economic impact of the reinvestment of the dollars being spewed forth by the current account deficit.

Without that liquid debt into which foreign investors have invested trillions of dollars, the U.S. dollar's value would have collapsed. That investment in debt has deferred, not eliminated, the foreign exchange and economic impact of the cumulative current account deficit. In short and for the moment, do not consider the issue of the U.S. national financial debt, but rather focus on the current account deficit.

more...

[UpInArms]

22. April Gold @ $574 oz

8:32am 02/03/06 APRIL GOLD DOWN $2.30 AT $574 AN OUNCE

[UpInArms]

49. April Gold @ $575.30 oz - March Silver @ $9.84 oz

9:59am 02/03/06 APRIL GOLD FALLS $1.50 TO $575.30/OZ IN MORNING TRADING

9:59am 02/03/06 MARCH SILVER FALLS 3.7C TO $9.84/OZ AFTER $9.885 HIGH

[WhiteTara]

68. so what is it?

It's making my head hurt that these numbers are so different with the strange timing.

[UpInArms]

70. here's the chart

for gold:



just hit "refresh" and it will give you a current number - it's definitely bouncing around this morning

:hi:

[EuroObserver]

67. NY gold drops from 25-yr peak early on firm dollar

Fri Feb 3, 2006 10:40 AM ET
NEW YORK, Feb 3 (Reuters) - U.S. gold futures tumbled from a prior 25-year high on Friday morning, pressured by technical chart resistance and a stronger dollar following a mixed bag of U.S. economic data, dealers said.

Profit taking by speculative players in the precious metals likewise knocked platinum from its new 26-year high and silver from this week's 22-year peak. Palladium was the only gainer, hitting a fresh 22-month high.

April delivery gold <GCJ6> was down $6.80, or 1.2 percent, at $570 an ounce on the New York Mercantile Exchange's COMEX division, trading from $578 to $569.50 -- its lowest price since Wednesday.

Gold backpedaled further from its long-term high of $579.50, touched on Thursday, as the dollar rallied on upwardly revised U.S. payroll numbers and a fall in the unemployment rate, which reinforced expectations for higher U.S. interest rates, traders said.

"A little dollar firmness really dropped it down, although these numbers are, in my view, somewhat inflationary, given tight employment," said a head dealer at a precious metals desk in New York. "The market doesn't seem to want to add to long positions here, and I guess resistance at $575 in cash may be capping things at the moment," he added.

/more...

[EuroObserver]

99. Big bank recommends gold

The Crédit Agricole Cheuvreux International Ltd.(Crédit Agricole S.A. group) 56-page report on gold (pdf) is from a major (London office of French) bank that recommends buying gold. key points from the Chevreux report (p.1):

* We are raising our mid-cycle gold price estimate to USD900/oz from USD750/oz and see the possibility of a spike to USD2,000, or higher. Covert selling (via central bank lending) has artificially depressed the price for a decade.
* Central banks have 10,000-15,000 tonnes of gold less than their officially reported reserves of 31,000. This gold has been lent to bullion banks and their counterparties and has already been sold for jewelry, etc. Non-gold producers account for most and may be unable to cover shorts without causing a spike in the gold price.
* There is a supply deficit in the gold market of around 1,300 tonnes per year before any central bank selling and perhaps 700 tonnes per year after 'official' sales but before covert selling. This compares with world gold mine output of only 2,500 tonnes per year. Some central banks, notably Russia, are starting to buy gold.
* Gold acts as an early warning of potential crisis such rising inflationary/deflationary pressures and general confidence in paper currency, especially the U.S. dollar. A strongly rising gold price could have severe consequences for U.S. monetary policy and the U.S.dollar. History suggests that gold always wins against an inflating paper currency (that is, one subject to excessive supply growth).
* Gold and gold mining stocks are poised for an unprecedented rise in prices and profile. Investors in UK/European equities need to assess the implications for their portfolios.

Also, on Bernanke's predicted policies:

* Our suspicion is that Bernanke will try to keep the US credit expansion going as long as possible (probably with the inevitable consequences). A further leg in the current credit expansion and inflationary boom in assets (with hyperinflationary risk) seems most likely outcome at this stage. At the same time, the heavily debtladen US economy is also at risk of a deflationary slowdown. .There is only one asset class that will perform under both of these extreme scenarios: gold (and precious metals). (p.45)

/much more...

[UpInArms]

101. Gold closes @ $571.60 oz - Silver @ $9.76 oz - Copper @ $2.308 lb

1:53pm 02/03/06 MARCH COPPER CLOSES AT $2.308/LB, DOWN 0.1C FOR THE DAY

1:53pm 02/03/06 MARCH COPPER ENDS THE WEEK UP 3.6%

1:53pm 02/03/06 MARCH SILVER CLOSES AT $9.76/OZ, DOWN 1.2% FOR THE DAY

1:53pm 02/03/06 MARCH SILVER CLIMBS 1.6% FOR THE WEEK

1:53pm 02/03/06 APRIL GOLD DROPS $5.20, OR 0.9%, TO END AT $571.60/OZ ON DAY

1:53pm 02/03/06 APRIL GOLD CONTRACT CLOSES THE WEEK UP 1.4%

[UpInArms]

23. Wars' cost nears $500B

Half of a TRILLION DOLLARS!

http://www.southcoasttoday.com/daily/02-06/02-03-06/04topstories.htm

WASHINGTON — The Bush administration said yesterday it will ask Congress for $120 billion more for the wars in Iraq and Afghanistan.

If approved by Congress, the war money would push spending related to the wars toward a staggering half-trillion dollars.

Details of the requests are not final, but the 2007 budget proposal that President Bush will submit next week will reflect the totals for planning purposes.

About $70 billion of the new war money will be requested for operations in Iraq and Afghanistan this year, bringing total spending on the two campaigns to $120 billion for the current budget year. The other $50 billion in new war money will be set aside in the 2007 budget for the first few months of the fiscal year that begins Oct. 1. More money will likely be needed in 2007.

The Congressional Budget Office has estimated that $320 billion has been spent on Iraq and Afghanistan since the attacks of Sept. 11, 2001, including $50 billion that Congress sent Bush in December.

Administration officials said the new figures were estimates.

...more...


The estimated population of the United States is 298,425,207
so each citizen's share of this debt is $27,485.84.

The National Debt has continued to increase an average of
$2.14 billion per day since September 30, 2005

[UpInArms]

24. Loss of confidence

http://www.rutlandherald.com/apps/pbcs.dll/article?AID=/20060203/NEWS/602030317/1039

ATLANTA — President Bush has forfeited the faith of the American people, and judging from his language Tuesday night, he knows it.

In his 2006 State of the Union speech, the president felt it necessary to warn us against "economic retreat," against retreating "from our duties in the hope of easier life."

"There is no peace in retreat," the president said, "and there is no honor in retreat." He warned against "abandoning our commitments and retreating within our borders," promising that "the United States will not retreat from the world."

"Never give in to the belief that America is in decline," he begged his fellow citizens, "or that our culture is doomed to unravel."

Retreat. Decline. Retreat...?.? The White House had advertised the speech as optimistic, but its unconscious recurring theme, its underlying tone, proved to be anything but.

The president's language did, however, reflect the nation's mood. For months, almost two-thirds of Americans have been telling pollsters that the country was headed in the wrong direction. Almost two-thirds say the economy is fair or poor, despite the fact that by many standard measures it's doing pretty well. And while Bush says we're winning in Iraq, 60 percent disapprove of how he has handled that critically important challenge.

...more...

[AnneD]

42. Morning Marketeers,

:donut: I have been trying to digest the SOTU speech and am a bit confused, esp with reguard to education. When Bush said we must emphasis science and math to be competitive, did he mean science based on logic and reasoning (evolution-like the rest of the world), or science based on allegory and faith (intelligent design). And if we keep cutting funds to public schools and for student loan programs...how can kids learn these subject at home school (voucher amounts can't even come close to what it costs a public school to educate a student). Kids won't be able to get advanced degrees because of funding. It takes both parent's income for a middle class family to live. Are the kids going to teach themselves? Will moms have to quit their jobs and be stay at home moms and unpaid teachers? I have dealt with home schooled children coming into public school and they are generally below grade level and have a difficult time transitioning into school routine. I have only known one exception and that mom had a masters in education. I am so confused by it all.
:silly:


Happy hunting and watch out for the bears.

[UpInArms]

40. $439.3 billion Defense Department budget up 5% - w/o WAR COSTS

http://wire.jacksonville.com/pstories/20060202/3619839.shtml

WASHINGTON — President Bush next week will request a $439.3 billion Defense Department budget for 2007, a nearly 5 percent increase over this year, according to senior Pentagon officials and documents obtained Thursday by The Associated Press.

The spending plan would include $84.2 billion for weapons programs, a nearly 8 percent increase, including billions of dollars for fighter jets, Navy ships, helicopters and unmanned aircraft. The total includes a substantial increase in weapons spending for the Army, which will get $16.8 billion in the 2007 budget, compared with $11 billion this year.

Senior defense officials provided the totals on condition of anonymity because the defense budget will not be publicly released until Monday. The figures did not include about $50 billion that Bush administration officials said Thursday they would request as a down payment for the wars in Iraq and Afghanistan in 2007. The administration said war costs for 2006 would total $120 billion.

The budget plan continues administration efforts to transform the military into a more efficient, agile fighting force, while also making investments in new technologies that will better equip troops to fight the global war on terror.

Defense Secretary Donald H. Rumsfeld would not provide any details of the budget Thursday but called it appropriate, adding: "We have been able to fund the important things that are needed. It is a sizable amount of money."

...more...

[UpInArms]

26. Treasury prices drop after Jan. payrolls report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38751.3631853819-859230765&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices gave up their gains early Friday, sending yields higher, after news that the jobless rate fell to a five-year low of 4.7% last month alongside a 0.4% increase in average hourly wages. The gain in wages triggered inflation fears. The benchmark 10-year note last was down 6/32 at 98-10/32 with a yield ($TNX) of 4.587%, contrasting with 4.561% in late trade Thursday. The Labor Department also said that 193,000 jobs were created last month. The January payroll figures fell short of expectations of a gain of 248,000, but with upward revisions to November and December of 81,000, the total payroll count was a bit more than expected.

[54anickel]

47. Mission Accomplished!...n/t

[UpInArms]

83. U.S. 30-year bonds surge before $14 bln auction

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T164900Z_01_NYG000124_RTRIDST_0_MARKETS-BONDS-LONGBOND-URGENT.XML

NEW YORK, Feb 3 (Reuters) - U.S. 30-year Treasury bonds rose sharply in price late Friday morning on expected strong demand ahead of next week's $14 billion reintroduction of the debt issue, analysts said.

The 1-point surge in the long bond <US30YT=RR> to 110-28/32, pushing the yield down to 4.637 percent, boosted the rest of the Treasury market, wiping out earlier losses after a surprise January drop in the U.S. jobless rate to a 4-1/2-year low.

[UpInArms]

114. Inverted yield curve threatens US mortgage bonds

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T195300Z_01_N03185183_RTRIDST_0_FINANCIAL-MORTGAGES.XML

NEW YORK, Feb 3 (Reuters) - Investors in the $5.6 trillion U.S. mortgage-backed securities market are growing wary of the inverted yield curve's impact on their investments since it is a harbinger of price losses.

Interest rates on short-term Treasury securities are now at their highest levels compared with longer-dated bonds in over five years. When the yield curve inverts, yield spreads on mortgage bonds against Treasuries often widen to reflect growing market risks and volatility.

"The inversion is not a positive for mortgage bonds and is one of main things on people's minds right now," said Scott Kirby, sector leader for structured products at RiverSource Investments, an Ameriprise Financial Company based in Minneapolis.

Yield curve inversions have often preceded an economic slowdown or even recession, but analysts have downplayed the current inversion on technical factors and strong foreign demand for long-dated U.S. bonds.

For the mortgage sector, an inverted curve entices consumers to take out longer fixed-rate mortgage loans rather than adjustable-rate loans, which are pegged against short-term rates.

...more...

I guess the alarm bells are finally beginning to ring :eyes:

[UpInArms]

27. 2 FEMA Employees Held on Katrina Bribery Charges

http://www.latimes.com/business/careers/work/la-na-bribe3feb03,0,6069819.story

Two men who helped run a FEMA base camp for relief workers after Hurricane Katrina were indicted by a grand jury in New Orleans on Thursday, accused of attempting to solicit bribes from a food vendor in exchange for artificially inflating the size of the vendor's contract.

Andrew Rose and Loyd Holliman, firefighters from Colorado, were each charged with one count of soliciting bribes as public officials, a felony with a maximum penalty of 15 years' imprisonment and a fine, said Jim Letten, U.S. attorney for the Eastern District of Louisiana.

They were being held Thursday night at the Orleans Parish Prison in New Orleans.

"It was incumbent upon us to swiftly present this to a grand jury to send an unmistakable message that no fraud or any type of corruption will be tolerated post-Katrina, especially any fraud or corruption that threatens the integrity of the system designed to help the rebuilding process," Letten said. "This scheme, if carried out successfully, would have not only corrupted a Louisiana contractor but would have cost taxpayers a lot of money."

<snip>

They helped administer a FEMA base camp in Algiers, a district separated from the rest of New Orleans by the Mississippi River.

...more...

[UpInArms]

28. U.S. official pleads guilty for stealing US & Iraqi funds in Iraq scheme

http://www.mercurynews.com/mld/mercurynews/news/world/13775786.htm

WASHINGTON - A former U.S. occupation official in Iraq pleaded guilty Thursday to conspiring to steal more than $2 million and rigging bids on $8.6 million in reconstruction contracts.

Robert J. Stein, 50, of Fayetteville, N.C., admitted that he and his co-conspirators smuggled millions of dollars out of Iraq into the United States aboard commerical airliners and laundered cash through multiple bank accounts in Switzerland, Amsterdam and Romania.

Stein was a Defense Department employee who served as a contract official for the Coalition Provisional Authority in Iraq, controlling more than $82 million in funds slated for rebuilding the Middle Eastern country.

He told U.S. District Judge Colleen Kollar-Kotelly that he also stole $600,000 in cash and used coalition money to buy dozens of machine guns and other weapons for use by a private security company he and his co-conspirators had formed to operate in Iraq.

The bulk of the bid-rigging benefited businessman Philip H. Bloom, who faces federal conspiracy and money laundering charges. Bloom's name was not mentioned in court Thursday. But prosecutors have identified him and his role in the Stein conspiracy in other court papers.

...more...

[UpInArms]

41. Two sailors arrested in immigrant smuggling

http://www.signonsandiego.com/news/mexico/tijuana/20060202-9999-6m2sailors.html

Two San Diego-based sailors have been arrested on suspicion that they helped to smuggle immigrants through a shore-patrol station near the San Ysidro border crossing, a Navy spokesman confirmed last night.

The two men will be arraigned this morning in U.S. District Court, said Scott Sutherland, deputy public affairs officer for Navy Region Southwest in San Diego.

Both men are 2nd-class petty officers, he said. One of them was a master-at-arms – the Navy's name for a military police officer – for Navy Region Southwest who stood guard at the shore-patrol station.

The second, a storekeeper with a helicopter squadron at North Island Naval Air Station, apparently was a friend of the other, Sutherland said.

Virginia Kice, a U.S. Immigrations and Customs Enforcement spokeswoman, said customs agents had taken the men into custody, but she could not give other details.

...more...

[ozymandius]

31. pre-open blather

08:55 am : S&P futures vs fair value: -3.5. Nasdaq futures vs fair value: -8.5. As investors digest the jobs report, Treasuries have sold off. The 10-year is now off nine ticks and yielding 4.59%. That market has helped set the tone for stocks, and futures trade now suggests a lower start for the cash market. Average hourly earnings were up 0.4%. That was slightly larger than an expected 0.3% gain, and the December increase was revised upward to 0.4% from 0.3% as well. This uptick in the trend in hourly earnings could cause some concern as it might be seen as moderately inflationary, and might lead the Fed to keep raising rates.

08:36 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: +3.0. The January employment report has been released. Non-farm payrolls rose 193K, below the 250K increase economists had expected. Hourly earnings were up 0.4%, versus the 0.3% consensus estimate. The unemployment rate checked in at 4.7%, below analysts' 4.9% forecast, and the average workweek was 33.8 hours (consensus 33.8 hours). Futures trade has held relatively steady in the market's immediate reaction. Treasuries have slightly fallen.

[UpInArms]

35. Maytag Says 4th-Qtr Loss Widens on Restructuring, Merger Costs

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aGhWTwigd56Q&refer=news_index

Feb. 3 (Bloomberg) -- Maytag Corp., the appliance maker being acquired by larger rival Whirlpool Corp., said its fourth- quarter loss widened on restructuring and merger costs.

The net loss was $75 million, or 93 cents a share, compared with a net loss of $14.1 million, or 18 cents, a year earlier. Sales rose to $1.24 billion from $1.16 billion, the Newton, Iowa- based company said today in a statement distributed by PR Newswire.

Maytag is waiting for Department of Justice approval of its $1.68 billion acquisition by Whirlpool, which would create the world's largest appliance maker. The company said rising steel, resin and fuel prices, and a lack of work at some of its U.S. factories would cause 2005 sales and profit to be ``significantly lower'' than it had forecast earlier.

``With the costs Maytag has, they've just become less and less competitive,'' said Mirko Mikelic, a senior portfolio analyst with Fifth Third Bank in Grand Rapids, Michigan, which has $21 billion in assets including Whirlpool bonds. ``This industry is so competitive and having appliances coming from China at a fraction of costs at Maytag and Whirlpool only adds to that.''

...more...

[UpInArms]

36. Weyerhaeuser posts loss on restructuring charges

http://today.reuters.com/business/NewsArticle.aspx?type=businessIndustry&storyID=2006-02-03T134107Z_01_N03374651_RTRIDST_0_BUSINESSPROIND-TIMBER-WEYERHAEUSER-EARNS-DC.XML

NEW YORK (Reuters) - Forest products company Weyerhaeuser Co. (WY.N: Quote, Profile, Research) on Friday posted a fourth-quarter loss on substantial charges for facility closures.

The company posted a loss of $211 million, or 86 cents per share, compared with a profit of $199 million, or 82 cents per share, for the same quarter last year.

The company said items including the closure of facilities, asset impairment charges, litigation and a gain from the sale of the company's French composite panels assets reduced results by a total of $1.80 per share. The facilities closures alone cost $1.78 per share.

...more...

[wordpix2]

96. aawwww , I'm crying for the forest rapist corporation

[UpInArms]

37. Enron Prosecutors Play Alleged Obscene Skilling Tape

http://www.forbes.com/2006/02/02/enron-skilling-expletive-cx_gl_0202autofacescan14.html

According to reports, Koenig testified that Skilling allegedly issued misleading data to analysts, regarding the earnings of the firm's retail energy division--a prized unit.

Koenig claimed that in conference calls with Wall Street analysts, the former CEO allegedly failed to disclose that the division had suffered losses of $726 million in the first half. Skilling instead maintained that the unit was profitable, the ex-exec told jurors.

And the insistences got a tad nasty. According to the Houston Chronicle--a hometown paper right in the city where Enron imploded, wiping out thousands of jobs, billions in investor value and plenty of life savings--prosecutors played a taped conference call that has become the stuff of Wall Street legend.

The Texas town's paper quoted the taped repartee between Skilling and an analyst, which the latter began by saying, "You know, you are the only financial institution that can't produce a balance sheet or a cash flow sheet with their earnings." The Chronicle quoted Skilling's response as, "Thank you very much, we appreciate it "--concluding with an expletive reference to the terminus of the human solid-waste excretory system.

[UpInArms]

69. There Was No Evil at Enron; Just Ask Lay, Skilling

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_woolner&sid=a2hZSPyEfx9w

``Today, as we start fresh with this historic trial, we start at ground zero,'' Petrocelli told jurors as the trial opened in Houston, Enron's hometown.

Actually, he doesn't want a completely blank slate. He wants us to wipe away only that bad stuff we've heard and think of the company as it was in its glory days.

``Enron was no house of cards,'' Petrocelli said. ``It was a wonderful company.''

It would have stayed a wonderful company, too, Lay's lawyer, Michael Ramsey, told the jury, if it weren't for a little minor thievery, which was overblown by irresponsible journalists, who were egged on by short-sellers trying to destroy the company. The news articles, he explained, panicked creditors, pushing Enron into bankruptcy.

No Lie

At the heart of the defense is the notion that Enron's publicly touted numbers were essentially correct. What Lay and Skilling were telling investors about its go-go growth year after year was true.

So why would they lie about a strong company? They wouldn't, of course.

<snip>

And while Skilling and Lay were urging everyone else to hold onto Enron stock -- indeed, to buy more -- they sold millions of dollars of their own shares, Enron Task Force prosecutor John Hueston told jurors in his opening statement this week.

[UpInArms]

98. Here's a link to a searchable database of Enron emails

http://orange.sims.berkeley.edu/~atf/enron/enron.cgi

Have fun! :evilgrin:

[UpInArms]

38. 9:35 EST and sucking pondscum at the start

Dow 10,816.35 -35.63 (-0.33%)
Nasdaq 2,263.03 -18.54 (-0.81%)
S&P 500 1,264.56 -6.28 (-0.49%)
10-Yr Bond 4.613 +0.52 (+1.14%)

NYSE Volume 69,019,000
Nasdaq Volume 112,662,000

[UpInArms]

43. Mattel to cut 200 jobs as it combines units

http://www.mercurynews.com/mld/mercurynews/business/13781847.htm

Toy maker Mattel is cutting more than 200 jobs, mostly through layoffs at its El Segundo headquarters, as part of combining its boys and girls unit and its preschool division.

In a Thursday filing with the Securities and Exchange Commission, Mattel said it will take a $10 million to $13 million charge in the first quarter as a result of the job cuts, which affect about 1 percent of the company's workforce.

After several quarters of declining sales for Barbie, Mattel's most important toy line, the company announced in October that it would combine its Mattel Brands toys with its East Aurora, N.Y.-based Fisher-Price infant and preschool toys. The new unit is headed by former Fisher-Price leader Neil B. Friedman.

<snip>

In addition to an 18 percent decline in domestic Barbie sales during last year's holiday season, Mattel said that its boys' toys also suffered, with sales of Hot Wheels, Matchbox and Tyco R/C products down 7 percent in the fourth quarter.

...more...

[UpInArms]

44. International Paper Posts Loss on Restructuring Charges

http://abcnews.go.com/Business/wireStory?id=1569871&CMP=OTC-RSSFeeds0312&ad=true

HARTFORD, Conn. Feb 2, 2006 — International Paper Co., the world's largest forest products company, on Thursday said it lost $77 million in the fourth quarter as a result of unusual items that resulted in a hefty net charge against earnings.

The company's loss amounted to 16 cents per share for the October-December period compared with earnings of $169 million, or 35 cents per share, the previous year. Without the unusual items and discontinued operations, earnings were $58 million, or 12 cents per share. That was above the consensus estimate of 7 cents a share by analysts surveyed by Thomson Financial.

<snip>

International Paper is in the midst of a sweeping restructuring plan to shed billions of dollars in assets by selling forestland and closing mills, using the proceeds to reduce debt and tighten financial operations.

...more...

[UpInArms]

51. Ex-AIG Exec Is Indicted

http://www.thestreet.com/_tscfoc/stocks/banking/10266144.html

A federal grand jury has indicted a former American International Group (AIG:NYSE - news - research - Cramer's Take) executive on charges arising from the accounting scandal that led to the forced resignation of Maurice Greenberg.

Christian Milton, AIG's former vice president for reinsurance, and three former General Re executives were charged with taking part in a fraudulent scheme to manipulate AIG's financial statements. The grand jury charged the defendants with securities fraud, conspiracy to commit securities fraud and causing false statements to be made to the Securities and Exchange Commission.

Milton is the first top AIG executive to be charged in the accounting scandal that led to a massive management shakeup at AIG.

<snip>

Authorities have alleged the Gen Re transaction began with a phone call from former AIG Chairman and CEO Maurice Greenberg to Ronald Ferguson, who was then Gen Re's president. The SEC complaint contends it was understood by Ferguson that AIG wouldn't assume any actual risk in the deal.

...more...

[UpInArms]

53. 10:13 EST red numbers and blather

Dow 10,808.75 -43.23 (-0.40%)
Nasdaq 2,265.04 -16.53 (-0.72%)
S&P 500 1,263.89 -6.95 (-0.55%)
10-Yr Bond 4.599 +0.38 (+0.83%)

NYSE Volume 372,380,000
Nasdaq Volume 418,658,000

10:00 am : The market falls further, with each of the major indices and all ten sectors below the unchanged mark. The Utilities sector (-1.0%) fares worst, followed by Energy (-0.7%). The Financial and Technology sectors also each levy 0.7% losses that weigh heavily upon the major averages. Inflation concerns and a subsequent sell off in bonds drags the former, while an 11% drop in Amazon.com (AMZN 38.02-4.72) and wide-spread selling takes Tech lower. Separately, the revision to the January Michigan sentiment index dropped it to 91.2 from the 93.4 (consensus 9.4) in the initial report earlier this month. Factory Orders were up 1.1% versus the +1.0% consensus, and the ISM Services index checked in at 56.8 (consensus 60.0)DJ30 -56.04 NASDAQ -19.43 SP500 -8.60 NASDAQ Dec/Adv/Vol 1471/1006/342.7 mln NYSE Dec/Adv/Vol 1771/920/157.6 mln

09:40 am : As futures trade had foreshadowed, the stock market opened in the red. The hourly earnings trend reflected in this morning's employment data is bearish for stocks. Hourly earnings rose a slightly more than expected 0.4% in January, and the December change was revised to 0.4% from an originally reported 0.3%. The firmer trend in wages causes inflationary concerns in the financial markets, and feeds concerns that the Fed will continue raising rates. To that end, the Treasury market is a bearish backdrop for the equity market; the 10-year is now down 12 ticks and yielding 4.61%. With the upwardly revised December change, non-farm payrolls, which rose a less than expected 193K in January, were consistent with forecasts for 3.5% real GDP growth in Q1. Separately, Amazon.com (AMZN) is a heavy drag following its disappointing earnings report.DJ30 -28.98 NASDAQ -14.91 SP500 -6.14

[UpInArms]

54. Del Monte Stops Pineapple Growing in Hawaii - outsourcing is cheaper

http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2006/02/02/financial/f070210S96.DTL&type=business

After 90 years in the islands, Fresh Del Monte Produce Inc. says it will cease pineapple operations in Hawaii in a little more than two years.

Del Monte said it was no longer economically feasible to grow pineapple in Hawaii because it can be produced for less in other parts of the world.

"It would be cheaper for Del Monte to buy pineapples on the open market than for the company to grow, market and distribute Hawaiian pineapple," the company said in a statement Wednesday.

<snip>

Fred Galdones, president of International Longshore and Warehouse Union Local 142, said about the 700 pineapple workers who will lose their jobs. Galdones said he was also concerned with the future of the two remaining pineapple companies in Hawaii, Dole Food Hawaii and Maui Pineapple Co.

"I hope it's not a domino effect like it did with the sugar companies, where one had closed and the others followed suit," he said.

<snip>

Last year, Hawaii produced 212,000 tons of pineapples worth an estimated $79 million, according to the U.S. Department of Agriculture. Worldwide, the top pineapple producers are Thailand, the Philippines, Brazil, China, India and Costa Rica, according to a USDA report.

...more...

[54anickel]

71. I only buy Dole as it is. Now I'll have to keep an eye out for changes

in their operations.

I hated the stuff as a kid, acquired a taste for fresh ones just a few years ago and love 'em now (still hate the canned stuff).

[wordpix2]

74. I wonder what this means for pesticide/herbicide use in pineapple growing

countries

I bought an organic pineapple just yesterday at Stop & Shop, big chain grocery in CT

[AnneD]

55. The status of Nursing in America...

hold on to your butts folks, Elvis is heading to the doors...
<snip>
Attend any nursing convention and you’ll see firsthand that nurses are older; 45 is the average age. In fact, of the 185,000 nurses who joined the workforce in 2002 and 2003, 70% were age 50 or above, says Linda D. Norman, RN, DSN, FAAN, lead researcher of a study on older nurses in the workforce.

Adding insult to the already injurious nursing shortage, a third of older nurses (age 50 and above) intend to retire or change professions within the next three years. Can we delay the inevitable?
<snip>

To head off another shortage, Norman and colleagues suggest targeting retention of older RNs employed outside hospital settings. Older nurses offer a wealth of experience and knowledge that makes them valuable resources to the nation’s health care delivery system. “Because of their rapid increase in numbers,” says Norman, “the research findings deserve careful consideration.”

http://www2.nurseweek.com/Articles/article.cfm?AID=19559

I recommend this as a good synopsis for the lay person. Hospitals have know this was comming but have placed profits over care and as a result, 1 in 4 new Nurses leaves the field entirely in 5 years post grad. And now the veteran Nurses are leaving.

[54anickel]

89. Thanks AnneD. Interesting article. Funny how the older nurses see

other career ops as the reason for the shortage while the younger ones cite pay. The health care programs at our local technical college have gotten huge and the greater percentage of their enrollment is for "retraining" of people who have lost their jobs in IT and manufacturing sectors. (Quite a few of my friends and former co-workers went into healthcare.) It's the displaced workers who have the demographics tilting heavily into "older" students, then again tech college students usually tend to be "older".

Locally, there certainly seems to be no shortage of "new recruits", but retention seems to be the big problem. The folks I know who went into it love the people part of the job, but would get out in a hearbeat if they could find a comparable paying job because of physical and mental burnout.

The survey chart gives the ages, but not how long they've been in the field. I also wonder how much less than $24/hour the pay is. That's such a huge data set, I mean that covers the range from minimum wage on up to $24, while the next category is a $9 spread. The people I know that went into the field trained in nursing homes at about $9 then went into the hospital's cardiac or acute care where they are at $15 - $18 per hour with swing shifts (far below what my co-workers were making in IT, about the same or a bit higher for displaced non-union manufacturing - lower for displaced union manufacturing.

[AnneD]

104. In Nursing...

there is a tremendous amount of wage compression. You start out great then you only below COLA 2-3%. Nursing wages did not go up AT ALL during the 90's AND new graduate Nurses were not able to find jobs and retooled. Hospitals started whining about shortages and upped the Nurse Patient ratio (cut their labour costs). This is why health care made such profits during this time. Now, they started REALLY needing Nurses in the late 90's and offered better salaries. So now we have new Nurses making much more than Nurses with 10 yrs experience. How happy is that.


Floor Nursing is for the young. Hospitals have been slow to provide ergonomic equipment (Nurses have a higher injury rate than construction workers). These older new grads will be in the same boat as us oldsters soon enough. It is hard backbreaking work that is grossly underpaid for it's true worth (it is not billed separately-it is included in room rate if you can believe that). Should we have a crisis like a pandemic, it will be a total pooch screw.

[54anickel]

108. Nurses and teachers seem to be the most under appreciated workers

these days. Very sad commentary on the SOTU.

[AnneD]

119. So as a School Nurse....

I get it from both directions.....How I have lasted this long and kept some sanity, God only knows.

[UpInArms]

97. Hey AnneD!

check out this DU thread

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x312464

[AnneD]

105. Hey UIA,

Thanks...boy do I have a few Nursing home experiences that will curl his hair.:yoiks:

[NC_Nurse]

100. The reason I read this thread every day

is so I can get the hell out of nursing. My youngest graduates from high school this year. I'm downsizing and working as an RN as little as possible after that. Our healthcare system sucks and I'm tired of being a part of it.

[AnneD]

103. Hey NC Nurse,

:hi: We are twins separated at birth. My only is a sophomore. I am doing the same thing. I am luckier than many of my Nurse buds because I have a Teacher's Retirement System defined benefit pension. I can retire with full benefits @ 57. I would like to be a financial adviser specializing in Nurses. Heaven knows, hospitals don't try to help them. Welcome......:hug:

[UpInArms]

58. Navistar gets notice of alleged default

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T151412Z_01_N03177852_RTRIDST_0_MANUFACTURING-NAVISTAR-FILING-UPDATE-1.XML

CHICAGO, Feb 3 (Reuters) - Truck manufacturer Navistar International Corp. (NAV.N: Quote, Profile, Research) said on Friday it has received notice from purported noteholders that it has failed to meet its financial reporting requirements.

<snip>

The Warrenville, Illinois-based company said the notice came Jan. 25 from the purported holders of more than 25 percent of its $220 million of 4.75 percent subordinated exchangeable notes.

The claimants maintain that Navistar failed to provide the trustee for these notes with an annual report on Form 10-K for the fiscal year ended Oct. 31, 2005, in a timely manner.

Navistar said it believes the indenture for these notes "does not require it to make timely filings of its periodic reports with the SEC, but rather only requires that copies of such reports be provided to the trustee when they are filed with the SEC."

Navistar previously said its filing for the period in question had been delayed because it was discussing "some complex and technical accounting issues" with its accounting firm, Deloitte & Touche.

...more...

[UpInArms]

59. SnowJob Trots out his dog and pony show lies

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T152239Z_01_WBT004711_RTRIDST_0_ECONOMY-SNOW-TV-URGENT.XML

WASHINGTON, Feb 3 (Reuters) - U.S. Treasury Secretary John Snow said he did not expect strengthening U.S. labor markets to cause inflationary pressures because of continued strong productivity growth in the U.S. economy.

"We're at that (labor cost) tipping point, we're seeing it happen now, but it's still consistent with continuing low unit labor costs because of continuing high productivity," Snow told Bloomberg Television.

"We're in sort of a sweet spot with the economy now where labor compensation can rise, profits stay strong, but since productivity is so high we would not expect to see a significant rise in unit labor costs."

U.S. employers added a smaller-than-forecast 193,000 new jobs in January, bringing the months's unemployment rate to a 4-1/2 year low of 4.7 percent, while job growth in the each of the five prior months was revised upwards.

[54anickel]

64. Translation: Working Americans are over a barrel and screwed

"We're in sort of a sweet spot with the economy now where labor compensation can rise, profits stay strong, but since productivity is so high we would not expect to see a significant rise in unit labor costs."

There's a bit of room for labor compensation to rise (thanks to lay-offs, wage concessions, dumping pensions for 401Ks, cutting benefits, etc, etc)
Profits stay strong (the above cost cuts will improve the bottom line)
Productivity is so high we would not expect to see a significant rise in unit labor costs (We've got them fearing for their jobs - if they are lucky enough to have one; we can continue to export those jobs to cheap labor countries - productivity has no bounds)

Sweet spot = labor is screwed. Of course labor may have the last laugh if they don't find a replacement consumer, but it's gonna be a painful one all the way around. Idgits!!!

We have no bargaining power as members of the labor force anymore. Ahhh, but a consumer strike - that could drive the point home. Too bad most Murikans just don't get it. They are too busy working multiple jobs to buy cheap crap at Squal-Mart to pay attention to what's happened to their country.

[wordpix2]

75. "sweet spot in the economy:" Snowjob thinks we're stupid

"Labor compensation can rise..." Yeah, maybe his compensation rises but mine doesn't keep up with the increases in fuel, electricity and related costs.

"We're in sort of a sweet spot with the economy now where labor compensation can rise, profits stay strong, but since productivity is so high we would not expect to see a significant rise in unit labor costs."

[UpInArms]

78. SnowJob doesn't read the reports: Productivity FALLS in 4th qtr

http://www.blackenterprise.com/yb/ybopen.asp?section=ybem&story_id=88910547&ID=blackenterprise

WASHINGTON -- Worker productivity fell in the fourth quarter for the first time in nearly five years and grew in 2005 at the slowest annual pace in four years, the government said Thursday in a report that heightened some concerns that inflation might be brewing.

But many economists, such as those at Bear Stearns, Moody's Economy.com and PNC Financial Services, say the slowing in productivity, or worker output per hour, was likely temporary.

"It's worrisome if it were to persist, but we have every reason to believe that productivity is going to bounce back in the first quarter," says Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi.

Productivity outside the farming sector fell 0.6% at an annual rate in the October-December quarter following a 4.5% gain in the third quarter. It was the first decline since the first quarter of 2001, when the U.S. economy dipped into recession and posted the largest drop since the third quarter of 2000.

For the year, productivity rose 2.7%, the smallest gain since 2001.

Productivity is a key part of the U.S. economy. When productivity rises, companies are able to increase output without adding workers. That helps boost profit margins, leading to bigger returns to investors. It also gives firms the ability to increase wages and other benefits without hurting the bottom line and is considered a key factor in standards of living.

...more...

[hatrack]

81. Does this guy even READ the business section in the paper?

Could he be more disconnected from reality? Somehow, I doubt it.

[54anickel]

90. I thought I read that it went down. I think the disconnect is that it was

down in the 4th quarter, but yesterday's headlines stated it was up for 2005. Snow's a bit behind in his reading again. Day late, dollar short.

[JNelson6563]

60. Know what's funny? Ok, here's what's funny

Team Bush is out there, and will continue to be making the rounds, telling everyone how great everything is but take a look at those futures charts in the OP! haha! As soon as the reports hit; nosedive. Maybe you can fool the slack-jawed ditto-heads across 'Murika but Wall Street can read the writing on the wall and, for the moment, are reacting honestly.

Of course by Monday we'll be reading about the "increase in chocolate rations" and the markets will soar. ;-)

Julie

[UpInArms]

61. 10:35 EST more than a paper cut - now under 10,800

Dow 10,790.74 -61.24 (-0.56%)
Nasdaq 2,258.84 -22.73 (-1.00%)
S&P 500 1,262.28 -8.56 (-0.67%)
10-Yr Bond 4.589 +0.28 (+0.61%)

NYSE Volume 525,355,000
Nasdaq Volume 573,336,000

[UpInArms]

63. Update: Sallie Mae fires unit's CFO over accounting (WTF?)

They are "updating" a July 2005 article???? :shakeshead: Why don't they just submit a new article?

Fri Feb 3, 2006 10:34 AM ET

In July 25, 2005, story headlined "UPDATE 2-Sallie Mae fires unit's CFO over accounting," please read in first paragraph ...SLM Corp. (SLM.N: Quote, Profile, Research), the largest U.S. provider of student loans, on Monday said it had fired the chief financial officer and demoted another manager in a debt collection agency unit ... instead of ... fired its chief financial officer .... (corrects to make clear a unit CFO, not the Sallie Mae CFO, was fired).

A corrected version follows. (Adds Sallie Mae comment, details, byline)

<snip>

NEW YORK, July 25 (Reuters) - SLM Corp. (SLM.N: Quote, Profile, Research), the largest U.S. provider of student loans, on Monday said it had fired the chief financial officer and demoted another manager in a debt collection agency unit for inflating revenue in a bid to achieve performance goals and collect higher bonuses.

The company, better known as Sallie Mae, also said the U.S. Securities and Exchange Commission had decided not to take enforcement action against it or the managers over the accounting errors, which took place in 2003. The SEC had opened an informal probe in January 2004.

Sallie Mae, based in Reston, Virginia, said it took action following an internal review. Spokesman Thomas Joyce declined to identify the unit or the managers, or when the firing and demotion took place. "we're pleased to put the matter behind us," he said.

SEC spokesman John Heine declined to comment. The former CFO could not immediately be located.

...more...

Weird.

[54anickel]

66. Internal "PR auditors" scrubbing press releases? Just a guess on

my part. Perhaps the "Dark Matter" is finally about to hit the fan. Can't scrub the numbers anymore than they have, the numbers still look bad, so they are preparing the CYA Public Relations campaign. Put out a new press release for that day and send the original down the memory hole in the shredding room. Newspaper articles aren't submitted in court, internal docs are. :shrug:

[AnneD]

117. Clever...

very clever indeed.

[UpInArms]

72. Wendy's same-store sales fall for the first time in 18 years

http://abcnews.go.com/Business/wireStory?id=1576090&ad=true

DUBLIN, Ohio Feb 3, 2006 — Fast-food chain operator Wendy's International Inc. on Friday reported a profit for the fourth quarter in contrast to a loss a year ago but revenue slipped. Yearly sales at its flagship Wendy's stores open for at least a year fell for the first time in 18 years.

Earnings were $30 million, or 25 cents per share, for the three months ended Jan. 1 versus a loss of $141.4 million, or $1.25 per share, a year earlier. The latest results include $55.4 million in charges for store closures, $36.1 million in goodwill impairment, $8.1 million in stock compensation expense and $3.2 million related to the planned initial public offering of its Tim Hortons division. All the charges reported are before taxes.

The 2004 results include a pretax $190 million charge for goodwill impairment at the company's Baja Fresh brand as well as other smaller charges.

<snip>

But same-store sales, or sales at locations open at least one year, fell 3.7 percent at its Wendy's restaurants. The same-store figure is a key measure of a retailer's performance.

...more...

[54anickel]

77. For $500 million payday, forget Wall St.

http://www.iht.com/articles/2006/02/02/business/rich.php

snip>

While the Securities and Exchange Commission is seeking greater disclosure of soaring executive compensation, top executives at hedge funds and private equity funds are collecting much larger amounts beyond the prying eyes of regulators and shareholders.

Two men in particular personify the contrasting personal styles of those with this new type of superwealth. Steven Cohen, a reclusive hedge fund magnate in Greenwich, Connecticut, who made more than $500 million last year, rarely gives interviews and remains rooted to his trading floor.

By contrast, a prominent person in private equity, Stephen Schwarzman, has become more of a public figure. He still cuts the big deals, but finds time for Davos forums and White House dinners. He is estimated to have earned as much as $300 million.

snip>

Cohen, a former trader at a midtier investment firm who started in 1992, takes home 50 percent of his hedge fund's profits; Schwarzman and his team divide 20 percent of the year's gains before returning the rest to their investors.

In effect, Cohen and Schwarzman have reaped outsize profits by institutionalizing Adam Smith's dictum that self-interest, not benevolence, puts bread on their and their clients' groaning tables.

snip>

The rapid accumulation of such wealth has been felt in New York's political, society and charity circles. Cohen, 49, a trustee of the Robin Hood Foundation, has established himself as one of the most aggressive buyers on the art scene. Schwarzman, 58, who is a trustee at the New York Public Library and the Frick Collection, was an early and avid financial backer of President George W. Bush.

more...

[UpInArms]

79. 11:38 EST "snapback" in progress

Dow 10,821.32 -30.66 (-0.28%)
Nasdaq 2,265.24 -16.33 (-0.72%)
S&P 500 1,267.59 -3.25 (-0.26%)
10-Yr Bond 4,555 -0.06 (-0.13%)

NYSE Volume 888,746,000
Nasdaq Volume 917,315,000

11:00 am : The market remains well below the flat line. Meanwhile, the bond market has somewhat recovered. The January ISM services index may help put a floor under prices. The data checked in at 56.8, which was down from 61.0 in December and lower than the expected 60.0 reading. It still reflects growth, but can be considered slightly disappointing. After the employment report, the lower than expected growth reflected in the ISM index is slightly bullish for bonds. Separately, next week's auction will keep pressure on prices as the market is uncertain how well the auctions will go, especially with the re-introduced 30-year note. DJ30 -51.33 NASDAQ -20.34 SP500 -6.69 NASDAQ Dec/Adv/Vol 1834/842/704.6 mln NYSE Dec/Adv/Vol 2264/700/477.5 mln

[UpInArms]

80. "Universal Default": One late bill and all your creditors could pounce

http://www.marketwatch.com/news/print_story.asp?print=1&guid={AD887ADE-5BDB-4AF0-9846-30728090EBA0}&siteid=mktw

LOS ANGELES (MarketWatch) -- Imagine whipping out your wallet to charge a $5,000 big-screen TV using a low-rate credit card, and then later finding that your rate had jumped to a whopping 24%.

And it wasn't because you were late with your credit-card payment or had exceeded your limits. In fact, you were in tip-top shape with this credit-card company. But it was because you were in not-so-good shape with another credit-card company or even your car or mortgage lender.

Under what's called "universal default," credit-card companies will gladly hand you a "penalty rate" if they find you've missed a payment on any other debt or credit card obligation. And they do mean penalty: According to a recent study by San Francisco-based Consumer Action, the average penalty rate in 2005 was a hefty 24.43%, up from 21.91% in 2004.

Is universal default legal? Yes. And in reality it's not much different from how mortgage companies and other lenders have always operated, looking at your entire payment history to determine your interest rate. But you'll have to check the fine print of your credit-card agreement to see if your issuer operates under universal default -- or pick up the phone.

...more...

[AnneD]

107. They have been know to up rates....

if you were late on a utility bill. SSDD.

[trogdor]

110. Task #1 - cancel your extra credit cards.

Consolidate your balances, and cancel the ones you zeroed out. The fewer bills you have to worry about, the better.

Task #2 - Pay down your balances. Stop using the damn things, if you can. These people are not your friends. Any form of debt where the rate can change because the creditor feels like it is a form you do not want to deal with.

[54anickel]

82. GM to Outsource $15 Billion in Contracts (IT)

http://www.cfo.com/article.cfm/5486125/c_5486496?f=home_todayinfinance

Officials at General Motors Corp. announced plans to spend about $15 billion over the next five years to outsource information technology (IT) activities, in what many believe to be one of the largest IT outsourcing efforts ever.

The financially beleaguered auto giant awarded contracts to EDS, Hewlett-Packard, Capgemini, IBM, Compuware Covisint and Wipro. GM said the initiative was driven by the ending of a 10-year deal with EDS that expires in June 2006.

EDS will continue to be the car maker's main outsourcing partner, but officials admitted that the workload for the long-time partner would be reduced somewhat. Meanwhile, HP and Capgemini will increase their existing business with GM. IBM, Compuware Covisint and Wipro will remain "strategic IT partners".

snip>

"This is a significant milestone for General Motors and its Information Systems and Services Group," said Ralph Szygenda, group vice president and chief information officer. "Of critical importance is the focus we have had on driving innovation and supporting future globalization and digitization of the company."

snip>

According to Reuters, he also said the winners of the outsourcing contracts were not driven by the lowest costs, stressing, "The winners today because they had the best capability. We didn't let payment terms drive us."

more...

[UpInArms]

85. 12:13 EST numbers and blather

Dow 10,810.83 -41.15 (-0.38%)
Nasdaq 2,262.08 -19.49 (-0.85%)
S&P 500 1,265.75 -5.09 (-0.40%)
10-Yr Bond 4,537 -0.24 (-0.53%)

NYSE Volume 1,073,438,000
Nasdaq Volume 1,072,241,000

12:00 pm : The market remains weak as it heads into the afternoon. This morning's employment data has fed inflation concerns, and a disappointing earnings report from Amazon.com (AMZN 37.90 -4.74) is a heavy drag.

The hourly earnings component of the jobs data occupies the spotlight. Hourly earnings rose a slightly more than expected 0.4% in January, and the December figure was revised to 0.4% from the originally reported 0.3%. The data suggest a firming wage trend, and a lower than expected unemployment rate (4.7%) adds to concerns over a tight labor market. The trend in hourly earnings has fanned inflation worries, and feeds the argument that the Fed may continue raising interest rates. We fully expect another ¼% rise in March; after the Fed's ambiguous policy statement, today's data creates more uncertainty that gives the market reason to fear further tightening beyond that. With respect to the non-farm payrolls portion, the read showed a less than expected but solid 193K increase. When also taking into account the upward revision to the December data, the payroll change is consistent with expectations for about 3.5% first quarter real GDP growth.

Broad-based selling has taken eight of the ten economic sectors lower. Rate-sensitive areas demonstrate relative weakness, but a recovery in the Treasury market has helped banks, and the Financial sector (-0.3%) in general, improve. The ISM index has not garnered too much attention from the stock market, but the lower than expected growth that it reflected has helped bonds. That market's rise has in turn helped stocks move off of their lows. Energy (+0.1%) has recently recovered, as has Industrials (+0.1%). Crude's 0.6% rise to $65.05 per barrel has helped the former sector, and uncertainty over Iran continues to impact the energy market.

The Technology (-0.6%) sector is the most influential laggard. Last night, Amazon.com went the way of Yahoo (YHOO 33.45 -0.80), eBay (EBAY 40.83 -0.75), and Google (GOOG 381.40 -14.64) in falling short of the market's high expectations. AMZN levies an 11% loss that stunts the sector, and it has sparked wide-spread selling across the tech board. Hardware and semiconductors are additional pockets of weakness that contribute to the indices' losses. On the other side of the aisle, Electronic Arts (ERTS 54.41 +0.83) is a bright spot. The company's profit results also disappointed investors, but it is trading up on the belief that the bad news had already been discounted into its stock.DJ30 -31.62 NASDAQ -16.19 SP500 -3.47 NASDAQ Dec/Adv/Vol 1705/1092/1.02 bln NYSE Dec/Adv/Vol 1900/1177/775.2 mln

11:30 am : Continuing to struggle, the indices hold their places. Selling remains broad-based and leaves nine of the ten sectors on losing ground. Over the past half hour, the Telecommunications sector has managed to clear the flat line. Relative strength in Bell South (BLS 29.21 +0.37) is behind the rise. Ultimately, though, the sector's 0.2% rise has little effect upon the broader market. Declines in more influential areas of the market, namely Financial (-0.5%), Tech (-0.8%), Healthcare (-0.3%), and Energy (-1.1%), keep the indices submerged. DJ30 -56.04 NASDAQ -20.52 SP500 -6.69 NASDAQ Dec/Adv/Vol 1791/961/565.7 mln NYSE Dec/Adv/Vol 2079/950/620.9 mln

[UpInArms]

87. JPMorgan faces $2.2 billion fraud and racketeering lawsuit over bonds

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T170914Z_01_N03202269_RTRIDST_0_FINANCIAL-JPMORGAN-LAWSUIT.XML

NEW YORK, Feb 3 (Reuters) - JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research) faces a civil racketeering lawsuit accusing the No. 3 U.S. bank of defrauding bond investors and others out of at least $2.2 billion over more than 20 years.

The lawsuit, filed on Tuesday with the U.S. District Court in Brooklyn, seeks class-action status.

It accuses New York-based JPMorgan and its predecessors of deleting records for $46.8 billion of bonds that investors had not cashed in, covering up its errors, refusing to pay back bondholders, and collecting fees it did not deserve.

In 2001, JPMorgan agreed to pay a $1 million civil fine to settle U.S. Securities and Exchange Commission charges that it maintained inaccurate records and filed false reports while acting as a bond transfer agent.

"Chase has engaged in shady and illegal accounting practices concerning its handling of the bonds and its collection of service fees from ... bond issuers," the plaintiffs' lawyer, Norman Kaplan of Great Neck, New York, wrote in his 67-page complaint.

...more...

Close these criminals down!

[UpInArms]

102. 2:17 EST upward momentum vanishes as everyone heads for exits

Dow 10,806.91 -45.07 (-0.42%)
Nasdaq 2,263.08 -18.49 (-0.81%)
S&P 500 1,265.05 -5.79 (-0.46%)
10-Yr Bond 4.545 -0.16 (-0.35%)

NYSE Volume 1,598,569,000
Nasdaq Volume 1,594,041,000

1:55 pm : The Dow recently cleared the unchanged mark, but has since settled back into negative territory. The S&P and Nasdaq also remain in the red. Honeywell (HON 39.58 +1.05) is the Dow's driver, and it is also the force behind the Industrial sector's 0.3% advance. Citigroup upgraded the company's shares to Buy from Hold today, and the stock continues to attract buyers following the strong earnings that it reported last week. An additional ten of the blue chip average's 30 constituents presently trend higher. AT&T (T 26.80 +0.28), McDonald's (MCD 35.98 +0.53), and Alcoa (AA 31.10 +0.45) are the issues that, along with Honeywell, have risen more than 1.0%. As for the laggards, IBM (IBM 80.07 -1.16) and General Motors (GM 23.22 -0.38) fare worst.DJ30 -12.57 NASDAQ -11.16 SP500 -2.21 NASDAQ Dec/Adv/Vol 1428/1467/1.47 bln NYSE Dec/Adv/Vol 1701/1472/1.12 bln

1:30 pm : Recoveries in some sectors have helped the market rise to its best levels of the session. Financial (-0.2%) and Health Care (-0.1%) are the primary movers. Led by Citigroup (C 45.44 +0.26), the banking industry has recently rebounded. Its turn around helps lift the Financial sector as well as the broader market. Adding to the momentum, brokers have gained some ground. With respect to the Health Care sector, Merck (MRK 34.27 +0.45) is behind the rise. The pharmaceutical group has also recently cleared the flat line, but declines in biotechs are a somewhat offsetting pressure. The Industrials (+0.3%) sector has also recently risen from the red. DJ30 -3.81 NASDAQ -9.73 SP500 -1.26 NASDAQ Dec/Adv/Vol 1528/1343/1.38 bln NYSE Dec/Adv/Vol 1897/1261/1.06 bln

[ozymandius]

106. witching hour update

3:11
Dow 10,822.52 -29.46 (-0.27%)
Nasdaq 2,265.81 -15.76 (-0.69%)
S&P 500 1,267.26 -3.58 (-0.28%)
10-Yr Bond 45.27 -0.34 (-0.75%)
NYSE Volume 1,845,296,000
Nasdaq Volume 1,844,678,000

3:00 pm : Little has changed for equities. Meanwhile, the Treasury market continues to rally. Trade there is led by demand at the long end of the curve. The run-up in the 30-year has been partially due to short-covering ahead of the 30-year note auction next week. Anticipation of decent foreign demand has helped that market gain ground. The benchmark 10-year note is up eight ticks and now yielding 4.53%. Its recovery helped the rate-sensitive areas of the market pare some of their early losses, but the Financial (-0.3%) and Utilities (-0.4%) sectors are still in the red as the flat yield curve remains an overhang.DJ30 -39.87 NASDAQ -18.22 SP500 -5.04 NASDAQ Dec/Adv/Vol 1588/1379/1.77 bln NYSE Dec/Adv/Vol 1812/1414/1.37 bln

[ozymandius]

111. Looks like they don't want to hold stocks over the weekend again.

3:24
Dow 10,810.27 -41.71 (-0.38%)
Nasdaq 2,264.39 -17.18 (-0.75%)
S&P 500 1,265.86 -4.98 (-0.39%)
10-Yr Bond 45.33 -0.28 (-0.61%)
NYSE Volume 1,907,457,000
Nasdaq Volume 1,902,559,000

[54anickel]

109. China, India Finally Appear on Bush's Radar

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=ahTQjT_7G7is

snip>

U.S. Addictions

Bush ignored another U.S. addiction: Asia's money. What makes unsustainable U.S. budget and current-account deficits appear sustainable is Asian central banks' holding more than $1 trillion of U.S. Treasuries. It keeps bond yields low, the dollar up and enables U.S. consumers to live beyond their means. At the same time, Asian nations can't afford to sell off dollar- denominated bonds and risk a surge in interest rates in their most important export market.

The economic trajectory should be clear to Washington. China's economy may well surpass that of the U.S. in the next few decades. It passed the U.K. to become the world's No. 4 economy last year. India won't be far behind.

Asia's vision of the future should worry the U.S., too. In December, Malaysia hosted the first-ever East Asia Summit, to which India was invited, but the U.S. pointedly wasn't. It was a sign that economies in the region are looking inward, relying on neighbors for growth and advice, not on the U.S.

If the Bush administration wonders why, it should start by looking at its own policies. Aside from demanding that China strengthen its currency, its only consistent focus has been urging support for the U.S.-led war on terrorism. While fighting terror is important, it's hardly the main issue on Asians' minds. And the war in Iraq was never popular in Asia.

Losing Asia

Twenty years from now, Iraq may not stand out as Bush's biggest foreign policy blunder. Rather, it may be how the U.S. lost Asia, a region in which it once enjoyed vast influence and commercial ties.

more...

[ozymandius]

112. Like wearing plaid and stripes together -

Anybody who's anybody doesn't own stocks over the weekend.

3:31
Dow 10,793.37 -58.61 (-0.54%)
Nasdaq 2,260.67 -20.90 (-0.92%)
S&P 500 1,264.54 -6.30 (-0.50%)
10-Yr Bond 45.33 -0.28 (-0.61%)
NYSE Volume 1,952,009,000
Nasdaq Volume 1,946,022,000

3:25 pm : Heading into the close of trade, the market's major averages remain within today's relatively tight trading range. As the week comes to an end, here is a glimpse at which industry groups fared best and which fared worst over the last five days. Agricultural products (ADM) have risen a market-leading 4.9%, followed by leisure products (BC, HAS, MAT), which has advanced 4.5%. In third place are human resources and employment services (MNST, RHI) with a 3.9% gain. On the laggard list, tires and rubber (CTB, GT) place last and have booked a 17% loss. The internet retail group (EBAY, AMZN) has fallen 16.7%, trailed by photo products (EK). DJ30 -43.15 NASDAQ -17.03 SP500 -4.97

[UpInArms]

115. Increasingly urgent US tackle current acct gap-Rato

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-03T193039Z_01_WBT004714_RTRIDST_0_ECONOMY-IMF-RATO-USA-URGENT.XML

BERKELEY, Calif., Feb 3 (Reuters) - Global imbalances are a risk to world growth and the United States needs to take the lead in ensuring they are safely and gradually unwound, IMF Managing Director Rodrigo Rato said on Friday.

Rato warned global imbalances -- the record shortfall in the U.S. trade account with the rest of the world -- could be unraveled quickly by an abrupt slowdown in U.S. consumer spending, or by a falling dollar and rising U.S. interest rates. Both scenarios would be very bad for world growth.

"The key challenge then is to unwind global imbalances gradually. To do this, it is important to abandon the pretense that global imbalances don't matter or will cure themselves," he said in the text of a speech at the University of California at Berkeley, which was released in advance to the media.

"First, in large part the imbalances are fueled by government actions, especially U.S. fiscal policy, and exchange rate and structural policies in Asia.

"Second, if imbalances are left to cure themselves, there is a much greater likelihood of the kind of abrupt and disorderly adjustment that would cause serious problems."

The U.S. current account deficit, the broadest measure of the country's income from trade in goods and services, stands at a record and is expected to head toward 7 percent of gross domestic product this year.

...more...

RayGun is about to be proven wrong in a very nasty fashion :eyes:

[ozymandius]

116. closing numbers

Dow 10,793.62 -58.36 (-0.54%)
Nasdaq 2,262.58 -18.99 (-0.83%)
S&P 500 1,264.03 -6.81 (-0.54%)
10-Yr Bond 45.33 -0.28 (-0.61%)
NYSE Volume 2,282,447,000
Nasdaq Volume 2,265,015,000

Edit for blather

4:20 pm : Friday's stock market spent the session in the red. The January employment report fanned inflation fears and rate hike worries, and a disappointing fourth quarter earnings report from Amazon.com (AMZN 38.29 -4.45) contributed to the market's struggle. In addition, a spike in the price of crude weighed upon sentiment.

The hourly earnings component of the jobs data received the most attention. Hourly earnings rose a slightly more than expected 0.4% in January, and the December figure was revised to 0.4% from the originally reported 0.3%. The data suggest a firming wage trend, and a lower than expected unemployment rate of 4.7% underpinned concerns over a tight labor market. The hourly earnings trend heightened inflation fears, and fed the argument that the Fed may continue raising interest rates. For its part, Briefing.com expects a 25 basis point hike at the FOMC's March meeting. On the heels of the Fed's ambiguous policy directive, today's data spurred further uncertainty that gave investors reason to anticipate even further monetary tightening. The other closely-watched element, non-farm payrolls, rose a less than expected but very solid 193K. When also taking into account the upward revision to the December data, the payroll change was consistent with expectations for approximately 3.5% real GDP growth during the first quarter.

Selling pressure was broad-based and left all but one economic sector with a loss. Rate-sensitive areas were especially affected by the jobs data, but a recovery in the Treasury market helped them move off of their lows. A rally in 30-year bonds, ahead of next week's auction and anticipation of decent foreign demand helped that market gain ground after its early sell-off. Bonds were also aided by the ISM index, which reflected lower than expected growth.

The Technology and Energy sectors were the worst faring. Crude futures closed 1.1% higher, at $65.37 per barrel, as concerns over Iran's nuclear ambitions continue to affect the energy market. The Energy sector did not catch a bid from the crude action, and levied a weighty 1.1% loss. Amazon.com dragged the Technology sector 1.1% lower. Failing to meet the street's high expectations, the company joined the likes of Yahoo (YHOO 33.48 -0.77), eBay (EBAY 40.41 -1.17), and Google (GOOG 383.00 -13.04) last night. Internet related issues were particularly weak, but selling was wide-spread and left a majority of the S&P 500's tech stocks trending lower. The semiconductors and computer hardware industries were also areas of significant weakness.

Telecom was today's lone bright spot, but its 0.4% advance did little to counter the declines across the broader market.DJ30 -58.36 NASDAQ -18.99 SP500 -6.81 NASDAQ Dec/Adv/Vol 1686/1316/2.22 bln NYSE Dec/Adv/Vol 1956/1311/1.75 bln

[EuroObserver]

120. GLOBAL MARKETS-US dollar, bonds, oil up, stocks, gold fall

NEW YORK, Feb 2 (Reuters) - U.S. stocks declined on Friday, ending the week in negative territory, as a report showing stronger job and wage growth fueled fears the Federal Reserve would raise interest rates further to curb inflation and some earnings disappointed investors.

Oil and bonds ended higher as gold slipped below Thursday's 25-year high. The Dow Jones Industrial Average and Nasdaq slumped.

The technology sector skidded on a steep drop in shares of online retailer Amazon.com Inc. (AMZN.O: Quote, Profile, Research), a day after its revenue fell short of Wall Street's target. A string of other disappointing reports in the week, including Web search company Google Inc.'s (GOOG.O: Quote, Profile, Research) first profit shortfall since it became a public company in August 2004, added to tech's woes.

The Dow Jones industrial average <.DJI> was down 58.36 points, or 0.54 percent, at 10,793.62. The Standard & Poor's 500 Index <.SPX> was down 6.81 points, or 0.54 percent, at 1,264.03. The Nasdaq Composite Index <.IXIC> was down 18.99 points, or 0.83 percent, at 2,262.58. For the week, the Dow ended down 1.04 percent, the S&P 500 lost 1.54 percent and Nasdaq fell 1.81 percent.

The tightening in the labor market suggested by Friday's data and Thursday's statistics showing a drop in fourth-quarter productivity and a rise in unit labor costs raised warning flags about the economy, analysts said. "These numbers combined with yesterday's ... gives the Fed a lot of ammunition to raise interest rates and if you have, at the same time, the economy slowing, that's just going to make a really difficult environment for stocks," said Hans Olsen, chief investment officer at Bingham Legg Advisers.
...
The dollar strengthened on Friday, bolstered by upwardly revised U.S. jobs numbers and a fall in the unemployment rate, which reinforced expectations for continued increases in U.S. interest rates.

In late New York trading, the euro <EUR=> was down 0.6 percent on the day at $1.2020, having fallen as low as $1.1970.
The dollar was up 0.3 percent against the yen at 118.83 yen <JPY=>, easing back though from its earlier peak of 119.39.
The dollar was up 0.8 percent on the day against the Swiss franc <CHF=> at 1.2950 francs, again off its session highs, while sterling <GBP=> was down 1 percent at $1.7615.
...
On the New York Mercantile Exchange, April COMEX gold <GCJ6> fell $5.20, or 0.9 percent, to settle at $571.60 an ounce. Gold retreated from its 25-year high hit Thursday on chart resistance and a stronger dollar.

U.S. crude oil for March delivery <CLH6> closed higher after rebounding on spurt of late short covering which snapped a three-day losing streak. Crude settled 69 cents higher at $65.37 a barrel. /more...