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Obama to apply fresh pressure on Republicans to avoid cutsBy Steve Holland WASHINGTON | Tue Feb 19, 2013 6:01am EST (Reuters) - President Barack Obama will make a fresh push on Tuesday to force congressional Republicans to make concessions that will head off budget cuts that appear increasingly likely to kick in starting on March 1. Obama, just back from a three-day golf getaway in Florida, will appear at the White House at 10:45 a.m. EST (1545 GMT) with emergency responders who would lose their jobs if the cuts go into effect. A White House official said he would urge Congress to approve a $110 billion tax increase and spending cut plan that would postpone more severe spending cuts set to begin March 1. If Congress fails to act, about $85 billion in across-the-board spending cuts begin on March 1 and continue through September 30 as part of a decade-long $1.2 trillion budget savings plan. Half the cuts would be shouldered by the Pentagon and the other half scattered among many other government agencies. The non-partisan Congressional Budget Office has estimated that, if fully implemented, these cuts would hold back U.S. growth and prevent the creation of about 750,000 jobs this year. But with Democrats and Republicans far apart on how to avoid the automatic cuts, they are widely expected to go into effect on March 1. In subsequent weeks a replacement measure could be negotiated at the same time Congress works on a deal to fund government agencies that run out of money on March 27. Obama has been adamant that any budget agreement to replace the cuts reflect a " balanced approach" and include both budget cuts and tax increases. He wants to raise revenue by eliminating tax loopholes enjoyed mostly by the wealthy. But Republicans feel they have raised taxes enough after reluctantly agreeing to increase them on the wealthy as part of a deal that avoided the " fiscal cliff" of higher taxes and spending cuts that would have kicked in at the end of 2012. Republicans want deeper spending cuts to reduce America's $1 trillion annual deficits and $16 trillion national debt. The White House effort to force Republicans to act is focused on dramatizing just who would lose jobs if the cuts go into effect. The emergency workers he will appear with on Tuesday are " the kinds of working Americans whose jobs are on the line if congressional Republicans fail to compromise on a balanced solution," said a White House official. " With less than two weeks before these cuts hit, the president will challenge Republicans to make a very simple choice: do they protect investments in education, health care and national defense or do they continue to prioritize and protect tax loopholes that benefit the very few at the expense of middle and working class Americans?" , the official said. To give Congress time to act on a long-term solution, Obama will urge congressional Republicans to accept the smaller $110 billion package that Democrats proposed last week.
" The president will urge congressional Republicans to compromise and accept this solution so these devastating cuts that will hurt our economy and middle class families won't hit," the official said.
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Today..many strongholds were pulled down.
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Current risk to the rally will be the sequester nearing 1 march. Will there be a solution? We shall watch and see. This is also part of the reason many investors are still sidelined waiting for a big market correction.
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By William L. Watts, MarketWatch FRANKFURT (MarketWatch) — Stock index futures indicated Wall Street was on track Tuesday to pick up slightly above where it left off ahead of a three-day weekend, finding a modicum of support on hopes of a pickup in merger activity. Upside was limited, though, by concerns over big spending cuts set to take effect in less than two weeks unless politicians take action. Futures on the Dow Jones Industrial Average DJH3 +0.13% rose 25 points, or 0.2%, to 13,973, while S& P 500 Index futures SPH3 +0.13% gained 2.1 points to 1,519.20. Grading colleges by student debtThe U.S. Government is supplying new data to help prospective students figure out which colleges offer the best bang for the buck. Image: Getty Nasdaq 100 futures NDH3 +0.19% gained 4.25 points to 2,765.50. U.S. markets were closed Monday for the Presidents Day holiday. “There is no real negotiation between Democrats and Republicans on a compromise and the beginning of the sequester on March 1, therefore seems to be inevitable,” wrote strategists at futures brokerage R.J. O’Brien in Chicago. The sequester refers to an estimated $85 billion in spending cuts that will otherwise take place from March through September, carrying the potential to slice into U.S. growth and raise unemployment. See: J.P. Morgan cuts GDP forecast on sequester fears. “Once the spending cuts hit, Republicans and Democrats will assess the extent of the stock market damage and any public outcry at defense industry layoffs, furloughs of government workers, and cuts in services for services such as meat inspections and flight controllers,” with the reaction shaping prospects for compromise, the R.J. O’Brien strategists said. Investors will be watching shares of two major office-supplies retailers. According to The Wall Street Journal, Office Depot Inc. ODP +2.00% and OfficeMax Inc. OMX -1.29% are in advanced discussions to merge. See: OfficeMax, Office Depot mull merger: WSJ . “After lying dormant for a while as corporate executives focused on survival, animal spirits are in evidence with some $140 billion worth of M& A deals announced in February,” said Gary Jenkins, director of Swordfish Research, a credit-research firm. While many smaller companies still find it difficult to borrow, “ the fact is if you can access funds then you can do so at a historically low rate of interest. This restoration of confidence has given equity markets a boost in spite of the rather woeful economic data,” he said. Investors face a light economic calendar Tuesday that features only the National Association of Homebuilders February index at 10 a.m. U.S. Eastern. Economists surveyed by MarketWatch expect it to rise to 49 from a level of 47 in January. Wednesday will bring data on January housing starts, producer prices and the minutes of the Federal Reserve’s latest policy meeting, while Thursday features the Consumer Price Index for February and weekly jobless claims. See: Economy, like battleship, plods forward . European shares gained ground, with the Stoxx 600 Europe index XX:SXXP +0.61% up 0.6%. Read about European stocks . The German ZEW economic expectations index in February posted a stronger-than-expected rise, hitting its highest level since April 2010. See: German Feb. ZEW expectations index rises . Stocks in Hong Kong and Shanghai slumped Tuesday after local Chinese government entities imposed further restrictions on home purchases, while Japanese shares retreated after the country’s finance minister denied Tokyo was considering purchases of foreign bonds. See: Shanghai, Hong Kong stocks slide .  ReutersBefore Wall Street opens on Tuesday, Medtronic Inc. MDT -0.11% , the Minneapolis medical-technology major, will report for its fiscal third quarter. A survey of analysts by FactSet produced consensus estimates of profit of 91 cents a share on revenue of $4.03 billion. Also reporting after Wall Street finishes regular trading is Herbalife Ltd. HLF +1.23% . The Los Angeles nutritional-products maker, the subject of a trading dispute between the hedge-fund manager William Ackman and the takeover investor Carl Icahn, is expected to report fourth-quarter profit of $1.03 a share on revenue of $1.05 billion. Computer-maker Dell Inc. DELL +0.73% is also slated to report earnings after the bell, with analysts surveyed by FactSet producing a consensus estimate of 39 cents a share. the company is in the process of executing a $24 billion plan to go private, but is facing growing resistance from big shareholders. |
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At Last, China Bulls Are Having Moment in the Sun
Published: Tuesday, 19 Feb 2013 | 1:37 AM ET
By: Katie Holliday I Writer CNBC Asia  Keren Su | China Span | Getty Images The long awaited recovery in Chinese stocks is here to stay, with the Shanghai Composite Index building on the surge seen late last year. Now analysts are expecting it to rally further, up to 30 percent in the Year of the Water Snake. Until December, when the market jumped over 14 percent, it had been a disappointing year for Chinese equities with the Shanghai index touching lows not seen since the financial crisis, as concerns over slowing growth in the world's second largest economy hit investor sentiment.
(Read More: How Long Will China Stocks Be Stuck in a Rut?) But as 2012 came to a close the market erased earlier losses posting a more than 3 percent gain for the full year on improving economic data. Since the start of 2013 stocks have rallied 7 percent and analysts tell CNBC that the China bulls' time in the sun is going to last. 30 Percent Pop Kerry Series, founder and CIO of Eight Investment Partners, said the Chinese stock market should be trading at 30 percent above its current value by the end of 2013.
(Read More: How to Trade a Chinese Recovery) " The fact is that China's growth is reaccelerating. We think the average Asian stock market ought to rise, or needs to rise, by 20 percent to get to the long-term average valuation. In China's case we think it ought to rise by more than that, so we could easily see a rise of 30 percent in Chinese stocks generally," Series told CNBC's" Cash Flow" on Tuesday. Encouraging economic indicators have emerged from China since the start of the year, after government official data showed growth had picked up to 7.9 percent in the final quarter of 2012, up from 7.4 percent in the previous quarter. The leadership transition has also fueled hopes of much anticipated market reform and the opening up of the market to more foreign investment. (Read More: China's New Leader - Harbinger of Reform?) Ryan Tsai, senior investment analyst at Coutts, told CNBC's Asia " Squawk Box" that he expected a further rally on the China's stock market of up to 20 percent. His bullish outlook was based on an improving economic outlook and reasonable stock valuations. Chinese stocks are currently trading at around 12.2 times price to earnings, compared to Hong Kong's little under 12 times and Japan's 19.2 times. " We expect 15 -20 percent upside by the end of the year. The Shanghai Composite could hit between 2,800 and 3,000," said Tsai. The index was trading around 2,390 by mid-day on Tuesday. Philip Chan, Chinese equity strategist at Shenyin Wanguo Securities, said a " 20 percent pop" within 2013 was not impossible, but added it was important to highlight that the Shanghai Composite has already seen a good run. " The market is already up 22 percent on its early December low," said Chan. " However, I would say a 20 percent pop is still possible. Markets are focused on two crucial NPC [National People's Congress] meetings in March, where some incremental policy changes - such as policies to promote alternative energy, or the financial markets, could have the potential to provide a boost to markets," he said.
(Read More: How China's Changed Since the Last Leadership Shift) " Policies could be introduced to help consolidate the overcapacity in solar energy panel market, for example, or there could be policies which explain more about future changes to the Hukou system [the government's household registration system], which will have implications on land/property and therefore on downstream sectors related to property," he added. China's new leadership led by Xi Jinping will also take official charge in mid-March. The positive impact of the leadership change has already been priced into Chinese stocks, said Chan, but the announcement of policy details could still move markets.
Shanghai Composite 1 Year PerformanceHow to Play the Rally Chinese equity strategists are focusing on cyclical stocks to play the uptick in the market. " Cyclicals, such as copper, steel, oil & gas will all do well. Lots of cyclical stocks are related to the property sector. So if the property sector continues to do okay, which is broadly expected, these sectors will also do well," said Chan. Coutts' Tsai also backed cyclicals including financials: " The big theme this year, at least for the first-half, is we want to be overweight cyclical sectors. We are not structurally positive on banks but we see the economy improving and banks are the way to play that," he said.
(Read more: Why It's Time to Buy China Bank Stocks) Tsai said the largest downside risk to China's growth this year would be if the government moved to tighten its monetary policy sooner than expected. " This would be because of a rise in inflation and in property prices. That would lead the policymakers to want to tighten," said Tsai. Last year China's central bank cut interest rates in June and July and has also eased monetary policy by lowering reserve ratio requirements for banks three times since November 2011. Chinese inflation eased to 2 percent in January, down from a seven-month high in December of 2.5 percent. Consumer prices have fallen steadily from a high of 6.5 percent in July 2011. |
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Goldman: Recession risks looks much lower now
LONDON (MarketWatch) -- Downside risks to the U.S. economy have diminished in recent months, with data points providing some bright spots and reducing the possibility that the economy will slip into a renewed recession, Goldman Sachs' top economist Jan Hatzius said in a note dated February 17. Hatzius said macroeconomic data, such as jobless claims, retail sales and manufacturing surveys, so far show the economy didn't buckle under the $200 billion tax increase that took effect at the beginning of the year. But more importantly, he said, the Republicans in Congress seem to have given up on the idea of using the debt ceiling to force additional spending cuts. " So the tail risk that the overall fiscal drag will be much larger than the 11/2-2 percentage points we assume for 2013, and that this will push the economy below 'stall speed' and into a renewed recession, looks much lower now," he said in the note.
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German Feb. ZEW expectations index tops forecast
FRANKFURT (MarketWatch) -- German investors grew more glum about current economic conditions in February but were more upbeat than expected about future prospects, the Mannheim-based Center for European Economic Research, or ZEW, said Tuesday. The ZEW expectations index rose to 48.2 from a January reading of 31.5. Economists surveyed by Dow Jones Newswires had forecast a reading of 35.0. The current-conditions index, however, dropped slightly to 5.2 from 7.1. Economists note the ZEW index holds little correlation with economic performance, but the data served to give the euro a small lift. The shared currencyEURUSD -0.11% edged higher to $1.3361, up 0.2% from Monday.
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German Investor Morale Soars to Highest Since April 2010 Published: Tuesday, 19 Feb 2013 | 4:55 AM ET  Carlos Malvar | Getty Images Frankfurt, Germany German analyst and investor sentimentsoared to its highest level since April 2010, beating all expectations with at third successive increase and signalling that financial markets are confident Europe's largest economy has turned a corner. The Mannheim-based ZEW think tank said on Tuesday its monthly poll of economic sentiment rose to 48.2 points from 31.5 in January, beating even the highest expectation in a Reuters poll with a median forecast for 35.0 points. The index was based on a survey of 272 analysts and investors conducted between Feb. 4 and 18, ZEW said. The better-than-expected reading boosted the euro and European shares and sent German Bund futures lower. |
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Good breakout volume today. Will be a good week for STX OSV.
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It should be closing the 1.375 gap soon.
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STX OSV has broken-out of the 20/50 SMA with huge volume. Strong trend reversal.
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You're welcome.
james87 ( Date: 19-Feb-2013 16:26) Posted:
thanks Peter for continuously updating new info..
Peter_Pan ( Date: 19-Feb-2013 16:22) Posted:
This circular by Ernst & Young should be issued soon:
Appointment of Independent Financial Adviser The Board of Directors (the " Board" ) of the Company refers to the announcement made on 23 January 2013 (the " Offer Announcement" ) by Credit Suisse (Singapore) Limited and Nomura Singapore Limited, for and on behalf of Fincantieri Oil & Gas S.p.A. (the " Offeror" ), a direct wholly-owned subsidiary of Fincantieri – Cantieri Navali Italiani S.p.A., in relation to the mandatory unconditional cash offer (the " Offer" ) by the Offeror to acquire all the issued ordinary shares (" Shares" ) in the capital of the Company, other than those already owned, controlled or agreed to be acquired by the Offeror, its related corporations and their respective nominees. The Board wishes to inform shareholders of the Company (" Shareholders" ) that it has on 28 January 2013 appointed Ernst & Young Corporate Finance Pte. Ltd. (the " IFA" ) as the independent financial adviser to advise the Directors of the Company who are considered independent for the purposes of the Offer (the " Independent Directors" ). A circular containing, inter alia, the advice of the IFA and the recommendation of the Independent Directors in relation to the Offer (the " Circular" ) will be sent to Shareholders in due course. In the meantime, Shareholders are advised to exercise caution when dealing in their Shares and to refrain from taking any action in relation to their Shares which may be prejudicial to their interests until they or their advisers have considered the information and the recommendations of the Independent Directors as well as the
advice of the IFA set out in the Circular to be issued in due course.
Expect it to be favourable to the minority shareholders!
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This circular by Ernst & Young should be issued soon:
Appointment of Independent Financial Adviser The Board of Directors (the " Board" ) of the Company refers to the announcement made on 23 January 2013 (the " Offer Announcement" ) by Credit Suisse (Singapore) Limited and Nomura Singapore Limited, for and on behalf of Fincantieri Oil & Gas S.p.A. (the " Offeror" ), a direct wholly-owned subsidiary of Fincantieri – Cantieri Navali Italiani S.p.A., in relation to the mandatory unconditional cash offer (the " Offer" ) by the Offeror to acquire all the issued ordinary shares (" Shares" ) in the capital of the Company, other than those already owned, controlled or agreed to be acquired by the Offeror, its related corporations and their respective nominees. The Board wishes to inform shareholders of the Company (" Shareholders" ) that it has on 28 January 2013 appointed Ernst & Young Corporate Finance Pte. Ltd. (the " IFA" ) as the independent financial adviser to advise the Directors of the Company who are considered independent for the purposes of the Offer (the " Independent Directors" ). A circular containing, inter alia, the advice of the IFA and the recommendation of the Independent Directors in relation to the Offer (the " Circular" ) will be sent to Shareholders in due course. In the meantime, Shareholders are advised to exercise caution when dealing in their Shares and to refrain from taking any action in relation to their Shares which may be prejudicial to their interests until they or their advisers have considered the information and the recommendations of the Independent Directors as well as the
advice of the IFA set out in the Circular to be issued in due course.
Expect it to be favourable to the minority shareholders!
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Hi-5!!!
kamyip ( Date: 19-Feb-2013 16:14) Posted:
I am referring to Ficanteri. We are toying the idea since Fin got it cheap at 1.22, dumping it at 1.33 still give very handsome return in a very short span. This is one of the downside risk that could happen which I think is unlikely.
I am with Peter ... 1.555 huat ar!
luvkarena ( Date: 19-Feb-2013 16:08) Posted:
| STX Europe alrd sold the shares to Ficanteri.... how to dump??? |
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He sold too early.
luvkarena ( Date: 19-Feb-2013 16:08) Posted:
STX Europe alrd sold the shares to Ficanteri.... how to dump????
kamyip ( Date: 19-Feb-2013 16:07) Posted:
Possible but quite unlikely in the short term,
As majority shareholder, it is not that easy to dump the shares in the market.
Unless there is a buyer at an agreed price, they have to dump the shares in a coordinated fashion ie
giving us minority time to react. |
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STXOSV $1.555 COME M NEY COME
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Strong base formation.
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With the backing of the Italian Mothership, potential clients will definitely have more confidence to award more of their contracts to STX OSV!
HUAT AH!!!
kamyip ( Date: 19-Feb-2013 13:54) Posted:
Peter,
if you keep on posting up-todate positive news on STX, more will keep their stock a bit longer...
then less seller, I do not see any problem of reaching 1.4 this week!
Peter_Pan ( Date: 19-Feb-2013 13:28) Posted:
| See if can strike 1.40 this week. |
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See if can strike 1.40 this week.
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Really? Double confirm?
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