Call of Duty: Modern Warfare 3 is the archetype of the blockbuster video game ... An escalation chart, a minimum scenario and millions of copies sold each new episode. This game shooter, a direct result of the previous Modern Warfare, released in 2009, is expected to break all records and selling, analysts said, more than 12 million copies, all platforms combined, at its first week of marketing. According to the firm RW Baird, between 18 and 19 million copies would be sold by the end of the year, allowing Activision-Blizzard to reap at least $ 1.1 billion (800 million euros).
The title that focuses on the action, the big show and some controversial scenes, along with the online game World of Warcraft, the main pension for Activision-Blizzard, the leading global video game. "When we design a game, we do not want to pay in the controversy. Modern Warfare 3 is realistic in the choice of uniforms for example, but it is a fiction, a blockbuster in the events of history," said Robert Bowling, Infinity Ward studio manager.
For Modern Warfare 3, two development studios were even engaged, Infinity Ward and Sledgehammer Games. "Our teams have never been divided. We worked as one team, and worked with a common vision. Sledgehammer has allowed us to bring a little cooler," Mr. Bowling.
Over 100 million games Call of Duty stamped on all media, have been sold worldwide, according to figures collected by the specialized site VG Chartz. With Black Ops, released last year, the series has tried rather clumsily to an exercise in narrative style, had already recorded record sales. According to VG Chartz, more than 13 million copies were sold on Xbox 360, and nearly 11 million Playstation 3, Sony.
Call of Duty franchise remains an essentially American. The game has sales in Japan marginal when more than 60 million shares of the license were sold in the United States. Europe is the second largest war game, with 38.5 million copies sold. The implementation of the license was also progressive. This is especially Call of Duty 4: Modern Warfare, released on next generation consoles, the series began to beat the record sales.
More hostile environment
At the launch of Modern Warfare 3, the environment of war games, however, is more hostile. At the end of October was released Battlefield 3, as a direct competitor of Activision-Blizzard. The game, published by Electronic Arts, set the same revenue, rendering almost photorealistic images of the game, with a new engine, Frostbyte 2.0, and an overhaul of the multiplayer mode. In one week, 5 million copies were sold worldwide, including 3.5 million in one weekend.
Other shooters like Resistance 3 or even Gears of War 3, are also trying to distinguish itself in the ruthless world of shooting game. Modern Warfare 3 can win in this context? "Modern Warfare 3 contains sequences of play that can not find anywhere else, including both a single player multiplayer and innovative. We were particularly attentive to the game mechanics, which is different in each city," ensures Robert Bowling.
But Activision is also looking for new growth. Often accused of producing a solo game mode too short, simple step facing the multiplayer, Robert Bowling ensures not have sold off the single player. "The single-player and multiplayer experiences are different. But we are working to combine the two, and blur the boundaries," said the head of Infinity Ward.
At the time of the release of Modern Warfare 3, Activision also runs Call of Duty Elite, a social network dedicated to fans of the series. According to research firm, such a service fee could generate $ 50 million (36.6 million) in revenue in 2012.
Where Modern Warfare 3 is made pointing
Everyone knows many players have been able to recover the Holy Grail awaited Modern Warfare 3, thanks to small retailers who distribute the game before its release official.
But there are still some who do not want to wait, and certainly not pay. Indeed, according to an article in Paris on Saturday morning two trucks leaving the plant located Micromania Bonneuil were attacked by a group of armed and hooded men.
They stole some 6,000 copies of Modern Warfare 3 for a final total of € 780,000. Remember though that this is not the first time it happens, because the same warehouse Bonneuil had already been attacked and robbed € 50,000 games in February 2011, or had even been a hostage in 2007 a total booty of one million euros.
For those who have no weapons to go rob a warehouse, we recall that the game comes out today, November 8, 2011.
But there are still some who do not want to wait, and certainly not pay. Indeed, according to an article in Paris on Saturday morning two trucks leaving the plant located Micromania Bonneuil were attacked by a group of armed and hooded men.
They stole some 6,000 copies of Modern Warfare 3 for a final total of € 780,000. Remember though that this is not the first time it happens, because the same warehouse Bonneuil had already been attacked and robbed € 50,000 games in February 2011, or had even been a hostage in 2007 a total booty of one million euros.
For those who have no weapons to go rob a warehouse, we recall that the game comes out today, November 8, 2011.
Call of Duty Modern Warfare 3: a launch event stylish and shock
J-4 before the release of Call of Duty: Modern Warfare 3, the game long awaited by all fans of FPS! To celebrate this great moment, Activision Publishing organizes a great Monday, November 7 launch party, to which many stars like Benoit Magimel, Omar Sy, Ramzy, Colonel Reyel and many others will attend. As a bonus, YUKSEK even give a concert! The video game event of the year-end Purefans News by Adobuzz.
On Monday, November 7, Purefans News will have the good fortune to attend the big launch party of the most anticipated game of the season, Call of Duty Modern Warfare 3! Just before leaving the game in the shops, Activision Publishing has announced a grand evening and at the height of his nugget at the Palais de Chaillot, at the foot of the Eiffel Tower!
For the occasion, many stars are in the game. In mind, the great Benoit Magimel, currently on view in "Special Forces" and ambassador for this brand new luxury episode. At his side, French cinema is more than well reprséenté with the presence of Omar Sy, with the fastest start of the year for a French film at the cinema with his film "untouchables", but also Ramzy Bedia, Jean Baptiste Maunier and Jean Paul Rouve and we pass.
Yet? ok! , Louisy Joseph, and singer Karine Ferri Tal (who shares the bomb Waya Waya duet with Sean Paul) will also be in there!
Other stars are also there to attend a charity event on the outstanding multiplayer Call of Duty: Modern Warfare 3! Include bulk singers David Hallyday, and Colonel Reyel or athletes Ladji Doucoure, Renaud Lavillenie, Amaury Leveaux, Yannick Fonsat, Jimmy and Vicaut Kafétien Gomis.
Note that the winner of this competition will play out of charity also direct the stars from across Europe present in the game launch parties held in their respective countries.
And it's still not all! The launch party of Call of Duty: Modern Warfare 3 will also provide an incentive lucky concert Yuksek, to whom we owe the enormous success of clubs and radio Tonight, Extraball (2009 - Away From The See - Barclay) and was train (2011 - Living on the Edge of Time ") and remixes of artists like Lady Gaga, Gorillaz, Phoenix and Mika.
You want to be part of? FNAC Champs Elysées is organizing a competition to win the last 15 seats (X2) for this exceptional evening. The winners of the contest, held this evening in front of the store, getting the chance to attend the event this season (how to find the contest on www.fnac.com).
Call of Duty: Modern Warfare 3 will be available Nov. 8 on PS3, Xbox 360, Nintendo Wii, Nintendo DS and PC. Courage, little more than four days to wait!
On Monday, November 7, Purefans News will have the good fortune to attend the big launch party of the most anticipated game of the season, Call of Duty Modern Warfare 3! Just before leaving the game in the shops, Activision Publishing has announced a grand evening and at the height of his nugget at the Palais de Chaillot, at the foot of the Eiffel Tower!
For the occasion, many stars are in the game. In mind, the great Benoit Magimel, currently on view in "Special Forces" and ambassador for this brand new luxury episode. At his side, French cinema is more than well reprséenté with the presence of Omar Sy, with the fastest start of the year for a French film at the cinema with his film "untouchables", but also Ramzy Bedia, Jean Baptiste Maunier and Jean Paul Rouve and we pass.
Yet? ok! , Louisy Joseph, and singer Karine Ferri Tal (who shares the bomb Waya Waya duet with Sean Paul) will also be in there!
Other stars are also there to attend a charity event on the outstanding multiplayer Call of Duty: Modern Warfare 3! Include bulk singers David Hallyday, and Colonel Reyel or athletes Ladji Doucoure, Renaud Lavillenie, Amaury Leveaux, Yannick Fonsat, Jimmy and Vicaut Kafétien Gomis.
Note that the winner of this competition will play out of charity also direct the stars from across Europe present in the game launch parties held in their respective countries.
And it's still not all! The launch party of Call of Duty: Modern Warfare 3 will also provide an incentive lucky concert Yuksek, to whom we owe the enormous success of clubs and radio Tonight, Extraball (2009 - Away From The See - Barclay) and was train (2011 - Living on the Edge of Time ") and remixes of artists like Lady Gaga, Gorillaz, Phoenix and Mika.
You want to be part of? FNAC Champs Elysées is organizing a competition to win the last 15 seats (X2) for this exceptional evening. The winners of the contest, held this evening in front of the store, getting the chance to attend the event this season (how to find the contest on www.fnac.com).
Call of Duty: Modern Warfare 3 will be available Nov. 8 on PS3, Xbox 360, Nintendo Wii, Nintendo DS and PC. Courage, little more than four days to wait!
A security vulnerability in the iPhone and the Apple iPad
A security vulnerability affecting the iPhone and the iPad would allow hackers to offer applications that steal information, send SMS or destroy data, alerts, Monday, November 7, an expert specializing in Apple products.
Charlie Miller, a researcher at security firm Accuvant Labs, a prototype of a malicious program, offered on the App Store, the Apple online store, has confirmed this vulnerability. Malicious software has passed the dam validation service applications submitted to Apple for iOS, the operating system of iPhone, iPad, iPod, he says.
For now, there is no evidence that this vulnerability was exploited by hackers, however, is Charlie Miller. But the demonstration proves that such an attack is possible, he adds. "Until now you could download anything from the App Store without fear of malicious software. Now you do not know what an application is capable," said Charlie Miller.
The software test Miller called InstaStock. Once launched, the program tracking stock price is connected to a server and can execute commands and retrieve information without the knowledge of the user.
Apple declined to comment immediately discovered, while the researcher said he had contacted the California group about this vulnerability. But according to Forbes magazine, first broke the story, Miller received an email from Apple announcing that its developer license on the platform had been canceled. The application is also no longer available on the App Store.
Charlie Miller, a researcher at security firm Accuvant Labs, a prototype of a malicious program, offered on the App Store, the Apple online store, has confirmed this vulnerability. Malicious software has passed the dam validation service applications submitted to Apple for iOS, the operating system of iPhone, iPad, iPod, he says.
For now, there is no evidence that this vulnerability was exploited by hackers, however, is Charlie Miller. But the demonstration proves that such an attack is possible, he adds. "Until now you could download anything from the App Store without fear of malicious software. Now you do not know what an application is capable," said Charlie Miller.
The software test Miller called InstaStock. Once launched, the program tracking stock price is connected to a server and can execute commands and retrieve information without the knowledge of the user.
Apple declined to comment immediately discovered, while the researcher said he had contacted the California group about this vulnerability. But according to Forbes magazine, first broke the story, Miller received an email from Apple announcing that its developer license on the platform had been canceled. The application is also no longer available on the App Store.
Nominations European Film Awards 2011
With eight nominations, "Melancholia" by Lars von Trier is the top European Film Awards 2011. "Revenge," "Le Havre", "The Artist", "The Kid on the bike," or "The King's Speech" are also nominated!
Like every year, the European Film Academy, headed by German filmmaker Wim Wenders, awards its European Film Awards, also known as European Film Awards, for best European film productions. With eight nominations including those for Best Film, Best Director and Best Actress for Charlotte Gainsbourg and Kirsten Dunst, Melancholia by Lars von Trier declared "persona non grata" in Cannes for his controversial statements, is leading the nominations for the 2011 vintage.
Films presented in Cannes and the Oscars
Among the major competitors in the race for the prize for best European film are no surprises other Cannes feature films such as The Kid bikes in the Dardenne brothers (Grand Prize winner), Le Havre from Finnish director Aki Kaurismäki, or The Artist Michel Hazanavicius (nominated for three other awards including best actor Jean Dujardin, Award of Best Actress at Cannes), which represent France. The Oscar-winning film The King's Speech by Tom Hooper (four Oscars) and Revenge of Susanne Bier (Oscar for best foreign film) are also present. Which movie will succeed The Ghost Writer by Roman Polanski, who had won six awards last year? Response on December 3 at the 24th European Film Awards ceremony to be held in Berlin!
Stephen Frears and Mads Mikkelsen honored
Finally, the British director Stephen Frears, whose latest film Tamara Drewe was presented out of competition at Cannes last year, will receive an Honorary Award for lifetime achievement, while the Danish actor Mads Mikkelsen currently on view of the Three Musketeers, will receive a trophy for his contribution to world cinema.
Like every year, the European Film Academy, headed by German filmmaker Wim Wenders, awards its European Film Awards, also known as European Film Awards, for best European film productions. With eight nominations including those for Best Film, Best Director and Best Actress for Charlotte Gainsbourg and Kirsten Dunst, Melancholia by Lars von Trier declared "persona non grata" in Cannes for his controversial statements, is leading the nominations for the 2011 vintage.
Films presented in Cannes and the Oscars
Among the major competitors in the race for the prize for best European film are no surprises other Cannes feature films such as The Kid bikes in the Dardenne brothers (Grand Prize winner), Le Havre from Finnish director Aki Kaurismäki, or The Artist Michel Hazanavicius (nominated for three other awards including best actor Jean Dujardin, Award of Best Actress at Cannes), which represent France. The Oscar-winning film The King's Speech by Tom Hooper (four Oscars) and Revenge of Susanne Bier (Oscar for best foreign film) are also present. Which movie will succeed The Ghost Writer by Roman Polanski, who had won six awards last year? Response on December 3 at the 24th European Film Awards ceremony to be held in Berlin!
Stephen Frears and Mads Mikkelsen honored
Finally, the British director Stephen Frears, whose latest film Tamara Drewe was presented out of competition at Cannes last year, will receive an Honorary Award for lifetime achievement, while the Danish actor Mads Mikkelsen currently on view of the Three Musketeers, will receive a trophy for his contribution to world cinema.
The turnover of flies Zynga
The Zynga social game publisher announced an increase of 80% of its revenue last quarter, but its net income was affected by recent investments in the group over the same period. The number one publisher of games for Facebook garnered $ 307 million of revenue (223 million) for a net profit falling 43% to $ 13 million (9.5 million).
Zynga, which plans to go public this year, could achieve its initial public offering before November 24, early Thanksgiving holiday in the United States. The company derives most of its revenue from the sale of virtual goods in its games Cityville or Farmville, and claims 6.7 million players. On average, according to figures from Zynga, each player has spent about 110 dollars (80 euros) over the last nine months. Last year at the same time, Zynga claimed 5.1 million players, who spent an average $ 105 in the same period.
Zynga, which plans to go public this year, could achieve its initial public offering before November 24, early Thanksgiving holiday in the United States. The company derives most of its revenue from the sale of virtual goods in its games Cityville or Farmville, and claims 6.7 million players. On average, according to figures from Zynga, each player has spent about 110 dollars (80 euros) over the last nine months. Last year at the same time, Zynga claimed 5.1 million players, who spent an average $ 105 in the same period.
Germany attacks the excesses of Facebook
The direction of Facebook marketing is probably not displeased with its results in Germany. According to a survey of specialized institute ComScore, that is the German Internet site that spend the most time (16.2% of the time spent on the Internet) to Google (12.3%) and far ahead of Microsoft ( 5%). However, the legal department of the company led by Mark Zuckerberg may not have the same view. On behalf of the infringement of individual liberties, supervisors multiply appeals against the social network.
The latest example: the ultimatum issued by Johannes Caspar, the official responsible for "data protection and freedom of information" for the Land of Hamburg but, on this issue, working for all of Germany. Mr. Caspar was given until November 7th to Facebook to get "in accordance with European and national law" on the face recognition. A picture can be exploited to the identity of a person so recognized be communicated to its "friends" without the explicit consent seemed illegal. But that is not there, "What for this feature, Facebook is developing a database to recognize the faces of millions of users is much more worrying."
With more than 75 billion photos stored, Facebook has so far identified, according to its own data, more than 450 million people. It is estimated that more than 1000 names are so identified every second. "The risks of such an accumulation of data is huge," explained Johannes Caspar in August. At first, he asked Facebook not to abandon this popular feature, but to erase the data. The refusal of the American company, whose European headquarters in Ireland, this officer is now considering a lawsuit.
"THE DUTY OF THE STATE"
Johannes Caspar is not the only German to be given a hard time on Facebook. In-state region of Schleswig-Holstein Thilo Weichert counterpart chose two other angles of attack. The first is sending data to the United States without the consent of the user, the second is the use of the key "I". Thilo Weichert is a repeat offender. Thanks to him - or her fault, it depends - Google has given to set up Google Street View in the state-region located in northern Germany. Denying that Facebook can know without the knowledge of the person that he consults a third party site itself registered on Facebook and features the famous button, even if that user is not itself registered on Facebook, Thilo Weichert announced it would impose a fine (up to 50 000 euros) to companies in the Schleswig-Holstein connected to Facebook via the "I". He even demanded that the state-region waives its own Facebook page.
Initiatives are not unanimously in Germany. Schleswig-Holstein has also not given up on his Facebook page, but clearly shows the following message: "The head of the Data Protection warns that Facebook violates German law on data protection." Ilse Aigner, Federal Minister responsible for Consumer Protection believes it, that each country-region can not have its own rules in this area. Internet users also complain of the "hard-line" by Thilo Weichert, even its "paternalistic". In a country marked by the Nazis but also by the Communist dictatorship, many are wary of a state that claims to protect citizens against themselves or decide for them what is good for them and what does not.
Facebook, Google and other Internet companies have pleaded their case Wednesday, November 2 in Berlin, during a first meeting at the Interior Ministry. Facebook estimates that comply with European law, would get by adopting a code of conduct. The interior minister, Hans-Peter Friedrich (CSU) should decide early 2012. But a few days ago, Peter Schaar who chairs the federal data protection (the German equivalent of the CNIL), was more assertive. He considers it the "duty of the State to be concerned about the fundamental right of citizens to determine for themselves the use of their personal data by companies."
To convince his countrymen of the merits of its position, Peter Schaar argument uses a typically German and rather unexpected in the mouth of an official, also environmental activist: thanks to the German law on data protection, more demanding than in many other countries, German companies are also in this area, ahead of their global competitors. In his view, data protection is a key to success in German exports in a world dominated by cyber crime. Faced with such an argument, Facebook has indeed the need to worry.
The latest example: the ultimatum issued by Johannes Caspar, the official responsible for "data protection and freedom of information" for the Land of Hamburg but, on this issue, working for all of Germany. Mr. Caspar was given until November 7th to Facebook to get "in accordance with European and national law" on the face recognition. A picture can be exploited to the identity of a person so recognized be communicated to its "friends" without the explicit consent seemed illegal. But that is not there, "What for this feature, Facebook is developing a database to recognize the faces of millions of users is much more worrying."
With more than 75 billion photos stored, Facebook has so far identified, according to its own data, more than 450 million people. It is estimated that more than 1000 names are so identified every second. "The risks of such an accumulation of data is huge," explained Johannes Caspar in August. At first, he asked Facebook not to abandon this popular feature, but to erase the data. The refusal of the American company, whose European headquarters in Ireland, this officer is now considering a lawsuit.
"THE DUTY OF THE STATE"
Johannes Caspar is not the only German to be given a hard time on Facebook. In-state region of Schleswig-Holstein Thilo Weichert counterpart chose two other angles of attack. The first is sending data to the United States without the consent of the user, the second is the use of the key "I". Thilo Weichert is a repeat offender. Thanks to him - or her fault, it depends - Google has given to set up Google Street View in the state-region located in northern Germany. Denying that Facebook can know without the knowledge of the person that he consults a third party site itself registered on Facebook and features the famous button, even if that user is not itself registered on Facebook, Thilo Weichert announced it would impose a fine (up to 50 000 euros) to companies in the Schleswig-Holstein connected to Facebook via the "I". He even demanded that the state-region waives its own Facebook page.
Initiatives are not unanimously in Germany. Schleswig-Holstein has also not given up on his Facebook page, but clearly shows the following message: "The head of the Data Protection warns that Facebook violates German law on data protection." Ilse Aigner, Federal Minister responsible for Consumer Protection believes it, that each country-region can not have its own rules in this area. Internet users also complain of the "hard-line" by Thilo Weichert, even its "paternalistic". In a country marked by the Nazis but also by the Communist dictatorship, many are wary of a state that claims to protect citizens against themselves or decide for them what is good for them and what does not.
Facebook, Google and other Internet companies have pleaded their case Wednesday, November 2 in Berlin, during a first meeting at the Interior Ministry. Facebook estimates that comply with European law, would get by adopting a code of conduct. The interior minister, Hans-Peter Friedrich (CSU) should decide early 2012. But a few days ago, Peter Schaar who chairs the federal data protection (the German equivalent of the CNIL), was more assertive. He considers it the "duty of the State to be concerned about the fundamental right of citizens to determine for themselves the use of their personal data by companies."
To convince his countrymen of the merits of its position, Peter Schaar argument uses a typically German and rather unexpected in the mouth of an official, also environmental activist: thanks to the German law on data protection, more demanding than in many other countries, German companies are also in this area, ahead of their global competitors. In his view, data protection is a key to success in German exports in a world dominated by cyber crime. Faced with such an argument, Facebook has indeed the need to worry.
Battlefield 3, orders are orders
Russian special forces, snipers Russians, Iranians, Iranian dissidents, and in the midst of all this, a U.S. Marine deployed in Iraq: Battlefield 3, the game shooter developed by Dice studio for Electronic Arts , gives the tone quickly: here we are in the registry Hollywood. Explosions galore, helicopters, tanks, epic battles against hordes of enemies, Battlefield 3 seeks to put the player in his eyes ... if it installs the game on the console to take advantage of high-resolution graphics of the new engine used by Dice.
But beyond the spectacle scenes, which put the player in command of a fighter-bomber or in the middle of epic battles, Battlefield 3 suffers from linearity which ruins everything. Impossible for the player to deviate a little bit of the way planned, the slightest deviation, he was ordered to "return to the combat zone," or, worse, he died suddenly, broke through invisible enemies. Building on some form of realism, Battlefield 3 is not particularly difficult, but is ruthless with the player too eager or too conservative, who will die quickly, often and foolishly.
The absolute ruler is also evident with the presence of many "quick time events" during which the player must press buttons indicated on screen to place an automated stage. Repetitive and totally uninteresting, these passages have crept into the entire game, from hand to hand combat to ... rat to stab through a pipe. Added a few bugs and slowdowns, these multiple sequences contribute to ruin a gaming experience also too short.
But achieving Battlefield 3 also has its share of good ideas. The chosen mode of narration - a long interview in which a soldier suspected of treason tells his story - recalls the construction of the film The Usual Suspects Bryan Singer, inviting the player to question the exact role it plays in terror plot in progress. Some levels are quite pleasurable, including undercover mission at night, and French players will find the level of Paris - where they discover that include the Paris Bourse is very well protected - a bit strange. The realistic graphics make the game at this level where the player shoots down police with a vengeance unusual.
Designed primarily for multiplayer, Battlefield 3 up, in its online mode, the constraints of the annoying single player. Rich, open and tactics, exploiting all the capabilities of various vehicles, multiplayer keeps his promises ... and also reinforces the bitter aftertaste left by the single-player campaign, a greater freedom could make it even more catchy.
The attraction of the game online, it seems, was the strongest: in one week, the game has already passed five million copies worldwide, according to figures from Electronic Arts.
But beyond the spectacle scenes, which put the player in command of a fighter-bomber or in the middle of epic battles, Battlefield 3 suffers from linearity which ruins everything. Impossible for the player to deviate a little bit of the way planned, the slightest deviation, he was ordered to "return to the combat zone," or, worse, he died suddenly, broke through invisible enemies. Building on some form of realism, Battlefield 3 is not particularly difficult, but is ruthless with the player too eager or too conservative, who will die quickly, often and foolishly.
The absolute ruler is also evident with the presence of many "quick time events" during which the player must press buttons indicated on screen to place an automated stage. Repetitive and totally uninteresting, these passages have crept into the entire game, from hand to hand combat to ... rat to stab through a pipe. Added a few bugs and slowdowns, these multiple sequences contribute to ruin a gaming experience also too short.
But achieving Battlefield 3 also has its share of good ideas. The chosen mode of narration - a long interview in which a soldier suspected of treason tells his story - recalls the construction of the film The Usual Suspects Bryan Singer, inviting the player to question the exact role it plays in terror plot in progress. Some levels are quite pleasurable, including undercover mission at night, and French players will find the level of Paris - where they discover that include the Paris Bourse is very well protected - a bit strange. The realistic graphics make the game at this level where the player shoots down police with a vengeance unusual.
Designed primarily for multiplayer, Battlefield 3 up, in its online mode, the constraints of the annoying single player. Rich, open and tactics, exploiting all the capabilities of various vehicles, multiplayer keeps his promises ... and also reinforces the bitter aftertaste left by the single-player campaign, a greater freedom could make it even more catchy.
The attraction of the game online, it seems, was the strongest: in one week, the game has already passed five million copies worldwide, according to figures from Electronic Arts.
Double truck turning the game "Modern Warfare 3"
Two delivery trucks to transport loaded Call of Duty: Modern Warfare 3, the last episode of the hit series from Activision comes out Tuesday, were leveled in the Paris region during the weekend, reports the Parisien. Both vehicles were deflected early Saturday morning after leaving the platform distribution company in Bonneuil Micromania.
The first truck was stolen Saturday at 7 am to 30 Créteil in the Val-de-Marne, by several people who first hit the vehicle with a car, before tackling the drivers using tear gas . An hour later, a second truck was attacked in Mantes-la-Jolie, in the Yvelines. Blocked by a car, truck drivers had to abandon their vehicles under the threat of a firearm.
Each truck contains several thousand copies of the game, which should represent one of the best sales of the end of the year. The booty is estimated to total 780,000 euros.
The first truck was stolen Saturday at 7 am to 30 Créteil in the Val-de-Marne, by several people who first hit the vehicle with a car, before tackling the drivers using tear gas . An hour later, a second truck was attacked in Mantes-la-Jolie, in the Yvelines. Blocked by a car, truck drivers had to abandon their vehicles under the threat of a firearm.
Each truck contains several thousand copies of the game, which should represent one of the best sales of the end of the year. The booty is estimated to total 780,000 euros.
Against the Kindle Fire from Amazon, Barnes & Noble launches the tablet Nook
U.S. bookseller Barnes & Noble presented Monday, November 7, a new multimedia tablet, the Tablet Nook, Nook variation of the reading light, which, like the Amazon Kindle presented by Fire in September, can watch movies and surf the Internet. "The Nook Tablet provides access to movies, TV programs, music and more through the best entertainment services like Netflix, Hulu Plus, Pandora and others, and a collection of applications of high quality, quick navigation of Web and email, "said Barnes & Noble.
The device features a color touch screen of 7 inches (17.8 cm) diagonal, as the Kindle Fire, which exceeds the price of 50 dollars (199 dollars, 144 euros for the Kindle Fire; 249 dollars, 180 euros for the Nook Tablet). However, it remains much smaller and cheaper than the Apple iPad, with a screen of 9.7 inches (24.6 cm) and whose entry model costs $ 499. It will be sold exclusively in the United States "on or about November 17", two days after the Fire and Kindle in time for the shopping season later this year. The two competing devices are connected via networks of wireless Internet.
Barnes & Noble, the largest bookstore chain in the country, arrived on the market for reading lights in 2009, two years later Amazon, but opposes competition affirmed. He has surpassed Amazon, the market leader, to introduce color and touch screens.
PRICE REDUCTION
Like Amazon in September, Barnes & Noble also announced a refresh of its single reading lights: the entry-level model, tactile, is now worth $ 99, while a color model, which does not allow watching movies but Web access and email, is sold 199 dollars. All these devices are connected only by wireless.
Amazon now sells its tactile models in black and white, 99 to 149 dollars depending on whether they are connected to 3G phone networks, and its entry-level model, not touch, to 79 dollars. Sarah Rotman Epps for, an analyst at Forrester Research, Barnes & Noble is with his tablet device "that all-inclusive", providing "a decent price" of performance than the Kindle Fire.
"Compared to Amazon Kindle Fire, the Nook Tablet has a longer battery life (9:00 instead of 7), two foix more memory and almost twice as much RAM - a speed that will make the device more convenient to use, more responsive to consumer media and multitasking between applications, "writes Ms. Rotman Epps on the blog of Forrester Research. And she said, the Nook has a few advantages to "take market share" to Apple and Amazon, including the fact that users can go to library to solve their problems with the Nook, and perception in public opinion that Shelves are anyway relatively expensive items, so that "the shelves of Barnes & Noble and Amazon have both the look very good business."
The device features a color touch screen of 7 inches (17.8 cm) diagonal, as the Kindle Fire, which exceeds the price of 50 dollars (199 dollars, 144 euros for the Kindle Fire; 249 dollars, 180 euros for the Nook Tablet). However, it remains much smaller and cheaper than the Apple iPad, with a screen of 9.7 inches (24.6 cm) and whose entry model costs $ 499. It will be sold exclusively in the United States "on or about November 17", two days after the Fire and Kindle in time for the shopping season later this year. The two competing devices are connected via networks of wireless Internet.
Barnes & Noble, the largest bookstore chain in the country, arrived on the market for reading lights in 2009, two years later Amazon, but opposes competition affirmed. He has surpassed Amazon, the market leader, to introduce color and touch screens.
PRICE REDUCTION
Like Amazon in September, Barnes & Noble also announced a refresh of its single reading lights: the entry-level model, tactile, is now worth $ 99, while a color model, which does not allow watching movies but Web access and email, is sold 199 dollars. All these devices are connected only by wireless.
Amazon now sells its tactile models in black and white, 99 to 149 dollars depending on whether they are connected to 3G phone networks, and its entry-level model, not touch, to 79 dollars. Sarah Rotman Epps for, an analyst at Forrester Research, Barnes & Noble is with his tablet device "that all-inclusive", providing "a decent price" of performance than the Kindle Fire.
"Compared to Amazon Kindle Fire, the Nook Tablet has a longer battery life (9:00 instead of 7), two foix more memory and almost twice as much RAM - a speed that will make the device more convenient to use, more responsive to consumer media and multitasking between applications, "writes Ms. Rotman Epps on the blog of Forrester Research. And she said, the Nook has a few advantages to "take market share" to Apple and Amazon, including the fact that users can go to library to solve their problems with the Nook, and perception in public opinion that Shelves are anyway relatively expensive items, so that "the shelves of Barnes & Noble and Amazon have both the look very good business."
Google+ finally opens its doors to business
Highly anticipated by the companies, Google has launched the enterprise version of its social network, Google +. Mountain View firm had taken his time to adapt its tools to the needs of companies.
Google's social network is now ready for business. After individuals, they can now create pages, called Google Pages + in their name or brand. What looks like a page on Google +, not surprisingly, we find the known ingredients on Facebook. It provides a way for companies to be present on the social network to interact with clients, share information on upcoming products and services, answer questions, and more.
Individuals can connect with companies and brands they love. They can assign a 1 (equivalent to "Like" on Facebook) Google + pages and share them with the rest of their network. Users can integrate brands or companies within their circles and thus be informed of upcoming offers products or services. Most users feel that the pages are neither more nor less than a profile suitable for companies or brands, similar to those known on Facebook. The only small addition is the integration of the Direct Connect feature that indexes the page directly in the search engine. Simply adding + before the name of the company or brand to be redirected directly to the page Google +. This function is currently being deployed.
Managing the fragmentation of social networks
Now that Google Pages + are available, it will be interesting to see if companies will move towards this social network or if they prefer to stick to Facebook. Maybe some companies are reluctant to be present on both social networks to do a favor after later. Several questions may arise, is that the content will be adapted on both networks? if one chooses Google +, are there any migration tools from Facebook? and so on.
It is likely that initially, some companies are testing the double life of many social networks and choose after a trial period of one that is most relevant or the most traffic. For now, the presence of companies are moving towards social networking and more oriented to mass public as Facebook, Google + Twitter or dedicated son. They have a more institutional presence and focused on social networks like Linkedin and Viadeo.
Google's social network is now ready for business. After individuals, they can now create pages, called Google Pages + in their name or brand. What looks like a page on Google +, not surprisingly, we find the known ingredients on Facebook. It provides a way for companies to be present on the social network to interact with clients, share information on upcoming products and services, answer questions, and more.
Individuals can connect with companies and brands they love. They can assign a 1 (equivalent to "Like" on Facebook) Google + pages and share them with the rest of their network. Users can integrate brands or companies within their circles and thus be informed of upcoming offers products or services. Most users feel that the pages are neither more nor less than a profile suitable for companies or brands, similar to those known on Facebook. The only small addition is the integration of the Direct Connect feature that indexes the page directly in the search engine. Simply adding + before the name of the company or brand to be redirected directly to the page Google +. This function is currently being deployed.
Managing the fragmentation of social networks
Now that Google Pages + are available, it will be interesting to see if companies will move towards this social network or if they prefer to stick to Facebook. Maybe some companies are reluctant to be present on both social networks to do a favor after later. Several questions may arise, is that the content will be adapted on both networks? if one chooses Google +, are there any migration tools from Facebook? and so on.
It is likely that initially, some companies are testing the double life of many social networks and choose after a trial period of one that is most relevant or the most traffic. For now, the presence of companies are moving towards social networking and more oriented to mass public as Facebook, Google + Twitter or dedicated son. They have a more institutional presence and focused on social networks like Linkedin and Viadeo.
Without reforms in Rome, the ECB could stop its purchases
The European Central Bank (ECB) often discussed the possibility of ending its purchases of sovereign debt in case the Italian Rome would not implement the promised reforms, said Yves Mersch, a member of the Governing Council of the ECB .
"If we find that (effective) our work is undermined by a lack of efforts of national governments, then we must ask us to question the effect (of interventions)," said he in an interview published Sunday by the newspaper La Stampa.
Asked if this meant that the ECB could stop buying Italian bonds, Yves Mersch, head of the Central Bank of Luxembourg, answers:
"If the council of the ECB concluded that the conditions that had led him to make a decision no longer exist, it can change that decision at any time. We talk all the time."
This is partly because the yields of Spanish and Italian sovereign bonds in early August had reached a level considered difficult to sustain over the long term for these countries to more than 6%, the ECB had resumed its buyback program obligations.
Since the last three months, it bought for about 100 billion shares, of which over half were Italian government bonds.
Friday, the yield on Italian 10-year loans reached a new high since the creation of the euro area, 6.43% due to the distrust inspired investors in the country, where a vote of confidence in the House planned Tuesday could bring down the coalition government led by Silvio Berlusconi.
At the G20 summit in Cannes last Thursday and Friday, Silvio Berlusconi, also faces the distrust of his own camp, asked the International Monetary Fund (IMF) to monitor the implementation of its commitments to reform.
Yves Mersch has also defended the right of the Italian Lorenzon Bini Smaghi to remain on the board of the ECB despite the fact that Italy will now have two members from any and France after leaving the presidency of the ECB Jean-Claude Trichet.
"If we find that (effective) our work is undermined by a lack of efforts of national governments, then we must ask us to question the effect (of interventions)," said he in an interview published Sunday by the newspaper La Stampa.
Asked if this meant that the ECB could stop buying Italian bonds, Yves Mersch, head of the Central Bank of Luxembourg, answers:
"If the council of the ECB concluded that the conditions that had led him to make a decision no longer exist, it can change that decision at any time. We talk all the time."
This is partly because the yields of Spanish and Italian sovereign bonds in early August had reached a level considered difficult to sustain over the long term for these countries to more than 6%, the ECB had resumed its buyback program obligations.
Since the last three months, it bought for about 100 billion shares, of which over half were Italian government bonds.
Friday, the yield on Italian 10-year loans reached a new high since the creation of the euro area, 6.43% due to the distrust inspired investors in the country, where a vote of confidence in the House planned Tuesday could bring down the coalition government led by Silvio Berlusconi.
At the G20 summit in Cannes last Thursday and Friday, Silvio Berlusconi, also faces the distrust of his own camp, asked the International Monetary Fund (IMF) to monitor the implementation of its commitments to reform.
Yves Mersch has also defended the right of the Italian Lorenzon Bini Smaghi to remain on the board of the ECB despite the fact that Italy will now have two members from any and France after leaving the presidency of the ECB Jean-Claude Trichet.
A flaw in Windows related to the spread of the virus Duque
Microsoft announced on Tuesday 1st November, a flaw in its Windows operating system, previously unknown, was used to infect computers with viruses Duque. "We are doing our best to solve this problem and will post an updated security for our customers," said the software giant in a brief statement.
Duque was spotted last month, when the security software company Symantec found a virus containing a source similar to Stuxnet, a virus that had affected the Iranian Bushehr nuclear power plant.
The first information on the mode of contamination by Duque were unveiled Tuesday. According to researchers at Symantec, the virus was sent to the victims targeted by e-mail through an infected Word document as an attachment. Once the recipient has opened the file in question and infected his computer, cyber-criminals can take control, told Reuters Kevin Haley, a researcher at Symantec. They then have plenty of time to spread the virus within a network and to collect data.
RELATIONSHIP WITH Stuxnet
A race against time is committed to solve the mystery of this new virus. Early analysis suggests that it was developed by highly skilled hackers in order to prepare the ground for attacks against critical infrastructure such as power plants, oil refineries and pipelines.
The fact that Stuxnet Duque shares with some of its source code suggests that the designers of Stuxnet have this code is sent to those of Duque, either deliberately left steal this code, or that the same hackers have developed the two viruses, said Kevin Haley. "While the number of infections is still limited by Duque, we see the malware spread in several countries," says Symantec, on his blog. So far, the antivirus has identified eight affected countries, including France.
Duque was spotted last month, when the security software company Symantec found a virus containing a source similar to Stuxnet, a virus that had affected the Iranian Bushehr nuclear power plant.
The first information on the mode of contamination by Duque were unveiled Tuesday. According to researchers at Symantec, the virus was sent to the victims targeted by e-mail through an infected Word document as an attachment. Once the recipient has opened the file in question and infected his computer, cyber-criminals can take control, told Reuters Kevin Haley, a researcher at Symantec. They then have plenty of time to spread the virus within a network and to collect data.
RELATIONSHIP WITH Stuxnet
A race against time is committed to solve the mystery of this new virus. Early analysis suggests that it was developed by highly skilled hackers in order to prepare the ground for attacks against critical infrastructure such as power plants, oil refineries and pipelines.
The fact that Stuxnet Duque shares with some of its source code suggests that the designers of Stuxnet have this code is sent to those of Duque, either deliberately left steal this code, or that the same hackers have developed the two viruses, said Kevin Haley. "While the number of infections is still limited by Duque, we see the malware spread in several countries," says Symantec, on his blog. So far, the antivirus has identified eight affected countries, including France.
Sony will end this year in the red
The Japanese company specializing in electronics Sony has notified, Wednesday, November 2, now he expects to finish fiscal year from April 2011 to March 2012 on a large deficit.
Sony thinks finish the year with a net loss of 90 billion yen (820 million) with a turnover that may be less than 700 billion yen to that provided either 6,500 billion yen (59 billion euros) against 7 200 billion previously expected.
Sony, which has been financially affected by the disaster of March 11 in Japan in the first quarter, is certainly able to restore the situation on this component. But it is still strongly affected by the high cost of Japanese currency and lower rates of certain key products such as televisions. He is also concerned about the consequences of floods in Thailand, including delaying the launch of new cameras.
RESULTS lead by the TV industry
Sony also announced on Wednesday, finishing the first half of the year on a net loss of 42.48 billion yen (386 million). The sharp decline in sales revenue is mainly due to the negative impact of the rise of the Japanese currency vis-à-vis the dollar and euro on sales outside Japan.
A 80% turnover of the group comes indeed from abroad, and the rising yen has a huge impact on its accounts. In addition, the group is a victim of competition that brings down the prices of TVs, a business that fails to return, despite severe cost-cutting measures.
Sony thinks finish the year with a net loss of 90 billion yen (820 million) with a turnover that may be less than 700 billion yen to that provided either 6,500 billion yen (59 billion euros) against 7 200 billion previously expected.
Sony, which has been financially affected by the disaster of March 11 in Japan in the first quarter, is certainly able to restore the situation on this component. But it is still strongly affected by the high cost of Japanese currency and lower rates of certain key products such as televisions. He is also concerned about the consequences of floods in Thailand, including delaying the launch of new cameras.
RESULTS lead by the TV industry
Sony also announced on Wednesday, finishing the first half of the year on a net loss of 42.48 billion yen (386 million). The sharp decline in sales revenue is mainly due to the negative impact of the rise of the Japanese currency vis-à-vis the dollar and euro on sales outside Japan.
A 80% turnover of the group comes indeed from abroad, and the rising yen has a huge impact on its accounts. In addition, the group is a victim of competition that brings down the prices of TVs, a business that fails to return, despite severe cost-cutting measures.
Google could offer pay-TV services
The group search engine Google plans to offer pay-TV services, reports the Wall Street Journal on its website (article fee), Thursday, November 3.
Google began looking for "ways to complete a project" already announced high-speed Internet access in Kansas City, in the center of the United States "by adding video services and telephony," the newspaper citing a "person having been informed" of the group's plans.
NO DECISION YET TAKEN
To this end, the California company "has discussed the possibility of distributing large television channels belonging to groups such as Walt Disney, Time Warner and Discovery Services", the newspaper said. However, the article adds, "These discussions were exploratory and no final decision has yet been taken."
In late October, the group announced a new version of its television system connected to the Internet, which is struggling to win. The launch of Google TVen Europe, originally planned this year, was postponed to a later date.
Google began looking for "ways to complete a project" already announced high-speed Internet access in Kansas City, in the center of the United States "by adding video services and telephony," the newspaper citing a "person having been informed" of the group's plans.
NO DECISION YET TAKEN
To this end, the California company "has discussed the possibility of distributing large television channels belonging to groups such as Walt Disney, Time Warner and Discovery Services", the newspaper said. However, the article adds, "These discussions were exploratory and no final decision has yet been taken."
In late October, the group announced a new version of its television system connected to the Internet, which is struggling to win. The launch of Google TVen Europe, originally planned this year, was postponed to a later date.
Apple will fix a bug with the iPhone battery
The U.S. company Apple announced Wednesday, November 2, it would update its new operating system, IOS 5. After the release of this system, several users had recently complained about poor performance related to the battery of the iPhone 4S. Discussion forums on Apple's website, there are dozens of testimonials from unhappy customers.
"'We found some bugs that affect the battery, and we'll provide an update in the coming weeks," says a spokeswoman for Apple, told Reuters. The Cupertino company has not stated the problem, or what models were particularly affected.
The iPhone 4S CONCERNED
According to the testimonies of users, the iPhone 4S, presented at the beginning of October by Apple, is affected, as apparently there any older models. To explain these battery problems, the specialized site All Things Digital evokes such disparities of consumption, according to the telephone network used.
Three days after its launch in mid-October, the computer manufacturer Apple announced it had sold over four million copies of its new model phone iPhone 4S.
"'We found some bugs that affect the battery, and we'll provide an update in the coming weeks," says a spokeswoman for Apple, told Reuters. The Cupertino company has not stated the problem, or what models were particularly affected.
The iPhone 4S CONCERNED
According to the testimonies of users, the iPhone 4S, presented at the beginning of October by Apple, is affected, as apparently there any older models. To explain these battery problems, the specialized site All Things Digital evokes such disparities of consumption, according to the telephone network used.
Three days after its launch in mid-October, the computer manufacturer Apple announced it had sold over four million copies of its new model phone iPhone 4S.
Groupon managed its IPO
The website specialist deals Groupon flew its first day of trading Friday in New York, despite the doubts inspired by its business model. The stock closed its first day at 26.11 dollars, up 30.55% from the introductory course set Thursday at $ 20, but slightly down from the opening price (28 dollars).
The operation, which enabled the young company from Chicago to recover $ 700 million (710.5 million if the option is purchased on allocation) is the second largest IPO for an Internet company since that of Google in 2004, notes the financial firm Renaissance Capital.
The company was born three years ago in Chicago, which has big marketing costs to win and keep subscribers and clients traders, said the funds raised would enable it to finance the needs of the farm. "Our IPO is a small step in our journey," said the founder and CEO Andrew Mason on the official blog of the group. On the financial channel CNBC, the financial director Jason Child, expressed satisfaction with the extent of the operation, "rather important and good for our business."
Groupon had placed 35 million shares Thursday. These 35 million shares represent only 5% stake in the company, which according to analysts has created a tension between supply and demand in his favor, especially as opportunities to invest in the new economy have been rare since the spring. The IPO of Groupon was one of the most anticipated in the area of high-tech U.S., pending the publisher of games Zynga, whose value is estimated around $ 14 billion but is already beneficiary, and especially the giant Facebook, much bigger, but has not yet filed a case.
But the valuation of Groupon during IPO at $ 12.7 billion, represents only about half of the estimates that were circulating last summer. Several analysts have noted that the fundamentals of the company, which widens its net loss while its growth lags the beginning of a slowdown, were carriers of risk.
Some analysts believe the outbreak of Groupon could be a short term phenomenon. They do not exclude a decrease of the action as it happened to the radio station Pandora Internet Media. Groupon has lost two senior vice presidents for a year and had to revise its accounts twice at the request of the authorities. "They wanted to shine in stock, so they do not put many in the audience," said David Berman, the sector specialist hedge fund Durban Capital. "They created demand by limiting supply. And they took the leap they wanted."
The operation, which enabled the young company from Chicago to recover $ 700 million (710.5 million if the option is purchased on allocation) is the second largest IPO for an Internet company since that of Google in 2004, notes the financial firm Renaissance Capital.
The company was born three years ago in Chicago, which has big marketing costs to win and keep subscribers and clients traders, said the funds raised would enable it to finance the needs of the farm. "Our IPO is a small step in our journey," said the founder and CEO Andrew Mason on the official blog of the group. On the financial channel CNBC, the financial director Jason Child, expressed satisfaction with the extent of the operation, "rather important and good for our business."
Groupon had placed 35 million shares Thursday. These 35 million shares represent only 5% stake in the company, which according to analysts has created a tension between supply and demand in his favor, especially as opportunities to invest in the new economy have been rare since the spring. The IPO of Groupon was one of the most anticipated in the area of high-tech U.S., pending the publisher of games Zynga, whose value is estimated around $ 14 billion but is already beneficiary, and especially the giant Facebook, much bigger, but has not yet filed a case.
But the valuation of Groupon during IPO at $ 12.7 billion, represents only about half of the estimates that were circulating last summer. Several analysts have noted that the fundamentals of the company, which widens its net loss while its growth lags the beginning of a slowdown, were carriers of risk.
Some analysts believe the outbreak of Groupon could be a short term phenomenon. They do not exclude a decrease of the action as it happened to the radio station Pandora Internet Media. Groupon has lost two senior vice presidents for a year and had to revise its accounts twice at the request of the authorities. "They wanted to shine in stock, so they do not put many in the audience," said David Berman, the sector specialist hedge fund Durban Capital. "They created demand by limiting supply. And they took the leap they wanted."
Groupon will raise $ 700 million for its IPO
The group buying site Groupon announced Thursday, Nov. 3, he plans to raise $ 700 million (507 million) for its IPO. The company does not 30 but 35 million shares at a price of 20 dollars (14.5 euros), exceeding the range of from 16 to 18 dollars (11.6 and 13 euros) announced last month. The transaction values the company at 12.66 billion dollars (9.17 billion euros). However, it is half the estimates were still advanced last summer.
For the financial company Renaissance Capital, which specializes in IPOs, "given that the actions offered for sale only 5% of the capitalization, the action could rise in early trade (on Friday on the Nasdaq), with a momentum of supply and demand. "
The IPO of Groupon is one of the most anticipated in the area of high-tech U.S., pending the publisher of games Zynga, whose value is estimated around $ 14 billion (10.1 billion) but is already qualified, and especially Facebook, which has not yet filed a case. Groupon had refused a year ago to be acquired by Google for $ 6 billion (4.3 billion).
Groupon site, with 142.9 million subscribers in 145 countries, with nearly 79,000 merchants using its services, working with more than 10,000 employees. Their role is to contact dealers and users to offer promotions on certain goods or services, provided only a minimum number of consumers to subscribe.
UNCERTAINTIES OF ECONOMIC MODEL
Despite this fundraiser, the website, launched in November 2008 in Chicago, leaving uncertainty about its business model. Groupon is still a net loss of $ 308 million (223 million) for the first nine months of the year, against $ 77.7 million (56.3 million) during the same period 2010. The site also boasts a turnover of 1.1 billion dollars (797 million) in the first nine months of the year, against $ 140.7 million (102 million) there is a year.
But Renaissance Capital noted a slowdown in the expansion: "The turnover of the third quarter to $ 430 million, only a 10% increase over the previous quarter, against a sequential growth of 33% in the second quarter, "the company noted in a footnote. The trading patterns of customers also raise doubts. In the third quarter, the average purchase per customer declined by 15%, to 3.30 dollars (2.40 euros).
The group purchasing industry is increasingly competitive. LivingSocial, backed by Amazon, had also come into stock. Currently present in 21 countries, the company has 38 million subscribers worldwide and more than 2000 employees. Google is also positioned in this market with its service "Offers", first experienced in some U.S. cities. Facebook, for his part renounced purchasing. Competition also comes from Asia. Chinese Lashou last week filed a request for IPO to the tune of $ 100 million (73 million).
For the financial company Renaissance Capital, which specializes in IPOs, "given that the actions offered for sale only 5% of the capitalization, the action could rise in early trade (on Friday on the Nasdaq), with a momentum of supply and demand. "
The IPO of Groupon is one of the most anticipated in the area of high-tech U.S., pending the publisher of games Zynga, whose value is estimated around $ 14 billion (10.1 billion) but is already qualified, and especially Facebook, which has not yet filed a case. Groupon had refused a year ago to be acquired by Google for $ 6 billion (4.3 billion).
Groupon site, with 142.9 million subscribers in 145 countries, with nearly 79,000 merchants using its services, working with more than 10,000 employees. Their role is to contact dealers and users to offer promotions on certain goods or services, provided only a minimum number of consumers to subscribe.
UNCERTAINTIES OF ECONOMIC MODEL
Despite this fundraiser, the website, launched in November 2008 in Chicago, leaving uncertainty about its business model. Groupon is still a net loss of $ 308 million (223 million) for the first nine months of the year, against $ 77.7 million (56.3 million) during the same period 2010. The site also boasts a turnover of 1.1 billion dollars (797 million) in the first nine months of the year, against $ 140.7 million (102 million) there is a year.
But Renaissance Capital noted a slowdown in the expansion: "The turnover of the third quarter to $ 430 million, only a 10% increase over the previous quarter, against a sequential growth of 33% in the second quarter, "the company noted in a footnote. The trading patterns of customers also raise doubts. In the third quarter, the average purchase per customer declined by 15%, to 3.30 dollars (2.40 euros).
The group purchasing industry is increasingly competitive. LivingSocial, backed by Amazon, had also come into stock. Currently present in 21 countries, the company has 38 million subscribers worldwide and more than 2000 employees. Google is also positioned in this market with its service "Offers", first experienced in some U.S. cities. Facebook, for his part renounced purchasing. Competition also comes from Asia. Chinese Lashou last week filed a request for IPO to the tune of $ 100 million (73 million).
Olympus delaying publication of its results
Olympus will not disclose its quarterly results on November 8 as expected, the group that said they needed more time after the establishment of an external commission to investigate the scandal related to its acquisitions.
The manufacturer of cameras and precision optical instruments now intends to publish its results for the period July to September in the second half of November, without necessarily waiting for the commission makes its findings.
"The decision to postpone (the publication) is in no way due to a problem raised by external parties," said the spokesman of Olympus. "We just think it would be too difficult to organize a conference results in the present circumstances."
Olympus has introduced Tuesday a six-member commission to investigate alleged irregularities during mergers and acquisitions, including the revelation has halved the market capitalization of the group.
The survey will include commissions of a record $ 687 million (484 million) paid in the acquisition of UK medical equipment Gyrus in 2008.
The commission has not set a deadline for the submission of its findings.
Listed companies in Japan must publish their quarterly results within 45 days after the end of the quarter, otherwise they risk losing their stock market listing.
The Tokyo Stock Exchange will normally schedule the November 14 deadline for the quarter from July to September and any late publication must be approved by the government, said a spokesman for the Japanese place.
The action Olympus finished down 6.8% to 1,118 yen, after falling by 12% immediately after the announcement of the postponement.
The group lost about 60% of its stock value since the abrupt dismissal in October of its Director General, Britain's Michael Woodford, who says he was ousted for having examined too closely to past acquisitions of the group.
The manufacturer of cameras and precision optical instruments now intends to publish its results for the period July to September in the second half of November, without necessarily waiting for the commission makes its findings.
"The decision to postpone (the publication) is in no way due to a problem raised by external parties," said the spokesman of Olympus. "We just think it would be too difficult to organize a conference results in the present circumstances."
Olympus has introduced Tuesday a six-member commission to investigate alleged irregularities during mergers and acquisitions, including the revelation has halved the market capitalization of the group.
The survey will include commissions of a record $ 687 million (484 million) paid in the acquisition of UK medical equipment Gyrus in 2008.
The commission has not set a deadline for the submission of its findings.
Listed companies in Japan must publish their quarterly results within 45 days after the end of the quarter, otherwise they risk losing their stock market listing.
The Tokyo Stock Exchange will normally schedule the November 14 deadline for the quarter from July to September and any late publication must be approved by the government, said a spokesman for the Japanese place.
The action Olympus finished down 6.8% to 1,118 yen, after falling by 12% immediately after the announcement of the postponement.
The group lost about 60% of its stock value since the abrupt dismissal in October of its Director General, Britain's Michael Woodford, who says he was ousted for having examined too closely to past acquisitions of the group.
Nikon lowered its forecast because of Thailand and the yen
Nikon said it had revised down its forecast of 22% of annual operating income due to both the consequences of floods in Thailand on its production and the strong yen.
The Japanese maker of digital cameras indicated that the activity of its factory in Thailand could not resume until January and had to wait until March for a return to normal.
Thailand is affected by the floods, the worst in 50 years, the weather that has already killed more than 420 dead.
Nikon, which had anticipated annual sales record before the disaster, said it would cut its results by 25 billion yen (232 million) despite projects to transfer production to other sites to meet the demand for year-end.
The group, whose main competitors are Canon and Sony now expects an operating profit of 67 billion yen for the year 2011-2012, ending in late March.
Analysts on average expected 81 billion yen, according to the consensus Thomson Reuters I / B / E / S.
The Japanese maker of digital cameras indicated that the activity of its factory in Thailand could not resume until January and had to wait until March for a return to normal.
Thailand is affected by the floods, the worst in 50 years, the weather that has already killed more than 420 dead.
Nikon, which had anticipated annual sales record before the disaster, said it would cut its results by 25 billion yen (232 million) despite projects to transfer production to other sites to meet the demand for year-end.
The group, whose main competitors are Canon and Sony now expects an operating profit of 67 billion yen for the year 2011-2012, ending in late March.
Analysts on average expected 81 billion yen, according to the consensus Thomson Reuters I / B / E / S.
Alcatel warns severely punished the stock market
The telecoms equipment maker Alcatel-Lucent has issued a warning Friday on its profitability for 2011, considered the stock market as a serious missed when the group enters the final stretch of its three-year plan for recovery.
A few months before the deadline he had set to become a business "normal" - growing, profitable and generating cash - the Franco-American group said suffer from economic downturn and the reluctance of European telecom operators to invest in their networks.
"Alcatel moves further away from what might be called a business 'normal'," said Thomas Langer of WestLB, while many analysts say they expect changes in estimates following the release, which should influence the consensus for 2011 and 2012.
At 2:10 p.m., the action Alcatel-Lucent accused the largest decrease in the CAC 40 index, falling 15.3% to euro 1.7 03 and recording session in his most well-Week Low. The title gives 22% since the beginning of the year.
After a quarter considered low, in which the group has once again engulfed a portion of its cash, Alcatel has revised its target operating margin adjusted to about 4% for 2011 and pledged additional measures to reduce costs in 2012.
"Given the uncertain economic climate, we will take more drastic action," said the CEO, Ben Verwaayen, who expects 500 million euros in additional savings. "You will see us take further action on costs and on cash."
THE CASH, "MAIN PRIORITY"
The telecoms equipment resulting from the merger in 2006 between Alcatel and Lucent has postponed by one year its ambition to achieve a positive cash flow, content now to build 2011 on "a level similar to that of last year or slightly better "
A few months before the deadline he had set to become a business "normal" - growing, profitable and generating cash - the Franco-American group said suffer from economic downturn and the reluctance of European telecom operators to invest in their networks.
"Alcatel moves further away from what might be called a business 'normal'," said Thomas Langer of WestLB, while many analysts say they expect changes in estimates following the release, which should influence the consensus for 2011 and 2012.
At 2:10 p.m., the action Alcatel-Lucent accused the largest decrease in the CAC 40 index, falling 15.3% to euro 1.7 03 and recording session in his most well-Week Low. The title gives 22% since the beginning of the year.
After a quarter considered low, in which the group has once again engulfed a portion of its cash, Alcatel has revised its target operating margin adjusted to about 4% for 2011 and pledged additional measures to reduce costs in 2012.
"Given the uncertain economic climate, we will take more drastic action," said the CEO, Ben Verwaayen, who expects 500 million euros in additional savings. "You will see us take further action on costs and on cash."
THE CASH, "MAIN PRIORITY"
The telecoms equipment resulting from the merger in 2006 between Alcatel and Lucent has postponed by one year its ambition to achieve a positive cash flow, content now to build 2011 on "a level similar to that of last year or slightly better "
Groupon flames on his debut on the Stock Exchange
The action Groupon blazed Friday for his debut on the stock exchange in heated exchanges, investor enthusiasm is accentuated by the low part of the capital negotiable.
The action has reached a high of 31.14 dollars, representing a gain of 55.7% over the IPO price of $ 20 or capitalization of nearly $ 20 billion, and then limit its up to 37% to about 27.36 dollars.
The specialist promotional offers through bulk purchases had placed 35 million shares Thursday. These 35 million shares represent only 5% stake in the company.
According to the specialist Ipreo is the second lowest free float on the stock market put the United States over the past decade.
A $ 20 per share, Groupon has raised $ 700 million, which represents the largest public offerings of an Internet company since Google's in 2004. The search engine had raised $ 1.7 billion at the time.
The beginning fanfare Groupon fellows may be able to encourage other known names such Internet Angie's List, Zynga or Facebook to get into the arena market.
Scores of companies were planning to go public this year have temporarily abandoned their project with the fall in equity markets in August.
The Director General of Groupon, Andrew Mason and its president Eric Lefkofsky fell into the arms of each other in Times Square after ringing the bell to open Nasdaq.
Some analysts believe the outbreak of Groupon could be a short term phenomenon. They do not exclude a decrease of the action as it happened to the radio station Pandora Internet Media.
The action has reached a high of 31.14 dollars, representing a gain of 55.7% over the IPO price of $ 20 or capitalization of nearly $ 20 billion, and then limit its up to 37% to about 27.36 dollars.
The specialist promotional offers through bulk purchases had placed 35 million shares Thursday. These 35 million shares represent only 5% stake in the company.
According to the specialist Ipreo is the second lowest free float on the stock market put the United States over the past decade.
A $ 20 per share, Groupon has raised $ 700 million, which represents the largest public offerings of an Internet company since Google's in 2004. The search engine had raised $ 1.7 billion at the time.
The beginning fanfare Groupon fellows may be able to encourage other known names such Internet Angie's List, Zynga or Facebook to get into the arena market.
Scores of companies were planning to go public this year have temporarily abandoned their project with the fall in equity markets in August.
The Director General of Groupon, Andrew Mason and its president Eric Lefkofsky fell into the arms of each other in Times Square after ringing the bell to open Nasdaq.
Some analysts believe the outbreak of Groupon could be a short term phenomenon. They do not exclude a decrease of the action as it happened to the radio station Pandora Internet Media.
The EU survey on patents for Apple and Samsung
The European Commission said Friday it opened an investigation into whether Apple and Samsung had infringed competition law on patents acting as standards in the field of mobile telephony.
The EC states that the request for information from the two companies is a standard procedure in any investigation relating to competition.
"We received a request for information from the European Commission and are cooperating fully," reported the South Korean group.
Apple and Samsung tear interposed by the courts, each accusing the other of violating intellectual property law.
"This investigation has big implications for the dispute between Apple and Samsung but beyond these two companies and is the type of licensing regime which is based on the entire sector," said Florian Mueller, expert of the law of intellectual property.
Foo Yun Chee, Wilfrid Exbrayat for the French service, edited by Catherine Monin
The EC states that the request for information from the two companies is a standard procedure in any investigation relating to competition.
"We received a request for information from the European Commission and are cooperating fully," reported the South Korean group.
Apple and Samsung tear interposed by the courts, each accusing the other of violating intellectual property law.
"This investigation has big implications for the dispute between Apple and Samsung but beyond these two companies and is the type of licensing regime which is based on the entire sector," said Florian Mueller, expert of the law of intellectual property.
Foo Yun Chee, Wilfrid Exbrayat for the French service, edited by Catherine Monin
Wall Street expected to grow with the crisis in Europe
Wall Street has responded lately, like most international exchanges, advances and setbacks in the resolution of the protracted debt crisis in the euro area and it may still well be the case next week.
While the worst seems so far avoided the vote of confidence from Parliament obtained Friday by the Greek Prime Minister George Papandreou, which removes the specter of early elections in the country that is the source of the crisis.
But the situation in Athens is not clarified so far as each day of delay in the implementation of the bailout of Greece delayed the possibility of an end to the crisis.
Greek political parties on Sunday bitterly negotiated a coalition agreement may prove to other countries in the euro zone as Greece is determined to continue on the path of austerity to avoid bankruptcy.
But beyond Greece, the debt crisis may worsen at any time due to difficulties in other countries in the euro area, Italy in mind.
"(The vote of confidence obtained by the Greek Prime Minister) removes the risk of a referendum or a renegotiation of new terms (the bailout)," said Thomas Roth, executive director responsible for the trading of bonds State U.S. at Mitsubishi UFJ Securities.
"But this vote he can really trigger a bullish development? There are still many risks such as Italy. It is not clear
While the worst seems so far avoided the vote of confidence from Parliament obtained Friday by the Greek Prime Minister George Papandreou, which removes the specter of early elections in the country that is the source of the crisis.
But the situation in Athens is not clarified so far as each day of delay in the implementation of the bailout of Greece delayed the possibility of an end to the crisis.
Greek political parties on Sunday bitterly negotiated a coalition agreement may prove to other countries in the euro zone as Greece is determined to continue on the path of austerity to avoid bankruptcy.
But beyond Greece, the debt crisis may worsen at any time due to difficulties in other countries in the euro area, Italy in mind.
"(The vote of confidence obtained by the Greek Prime Minister) removes the risk of a referendum or a renegotiation of new terms (the bailout)," said Thomas Roth, executive director responsible for the trading of bonds State U.S. at Mitsubishi UFJ Securities.
"But this vote he can really trigger a bullish development? There are still many risks such as Italy. It is not clear
The reserves of the Bundesbank will not fund the EFSF
The German government Saturday denied press reports saying that the reserves of the Bundesbank would be used to replenish the European Financial Stability Fund (EFSF), the emergency fund in the euro area.
The Frankfurter Allgemeine Sonntagszeitung reported that the reserves of the German central bank - made of gold and foreign exchange - will be used to increase the contribution of Germany to EFSF over 15 billion euros.
The Welt am Sonntag said the same thing in its columns.
"The foreign exchange reserves and gold in Germany, managed by the Bundesbank, have never been in discussions at the G20 summit in Cannes," said the spokesman of the German government.
G20 leaders met Thursday and Friday in Cannes discussed the idea of the European System of Central Banks gather their foreign exchange reserves totaling 50 to 60 billion to a kind of EFSF funds in the form of special drawing rights (SDR) of the International Monetary Fund (IMF).
"We know this plan and we reject it," said a spokesman for the Bundesbank.
The Frankfurter Allgemeine Sonntagszeitung reported that the reserves of the German central bank - made of gold and foreign exchange - will be used to increase the contribution of Germany to EFSF over 15 billion euros.
The Welt am Sonntag said the same thing in its columns.
"The foreign exchange reserves and gold in Germany, managed by the Bundesbank, have never been in discussions at the G20 summit in Cannes," said the spokesman of the German government.
G20 leaders met Thursday and Friday in Cannes discussed the idea of the European System of Central Banks gather their foreign exchange reserves totaling 50 to 60 billion to a kind of EFSF funds in the form of special drawing rights (SDR) of the International Monetary Fund (IMF).
"We know this plan and we reject it," said a spokesman for the Bundesbank.
Groupon, the souffle will he fall?
The CEO and founder of Groupon, Andrew Mason, succeeded her little effect. Despite the skepticism about its business model, despite the communication errors on its books, despite the tensions in financial markets, the site of Internet business has made a sensational debut on the stock market. In early trade on Wall Street, Friday, Nov. 4, the value has jumped nearly 50%, introduced 20 dollars, the title was trading at more than $ 29, less than an hour later.
We had not seen such volatility on the stock market since the rating is downgraded the sovereign debt of the United States in August by Standard & Poor's. The "VIX", the Chicago Board Options Exchange Volatility Index, panicked earlier this week, climbing 42% a few days before the IPO of the most anticipated of the year.
Yet all the uncertainties have not flown one stroke of one. But the banks that led the transaction, Goldman Sachs, Morgan Stanley and Credit Suisse had put everything on their side to turn the challenge into success. The low number of shares that were offered for sale has obviously created a scarcity effect, which contributed to the soaring title.
The bubble burst there as quickly as it rose? From the time the $ 700 million public offering raised Friday only 5% of total capitalization, difficult to draw definitive conclusions of the fireworks that has seen Wall Street. A number of investors bought a ticket to board the train, not sure they want to go to the end.
When asked these questions, the IPO of Groupon, beyond the inevitable excesses that surrounds values Internet, has, nevertheless, some virtues: First, the model is fairly cash intensive. This new money is likely to consolidate. Second, market pressure will help structure this model, the push towards greater maturity.
Finally, he devotes an idea whose time has come: that which is to converge physical and Internet commerce. The both have had in recent years in the fear of cannibalizing each other. But more and more players now realize that the future of distribution lies in a balanced mix between the two. Groupon has perhaps not yet found the magic formula. The idea, remember, is to negotiate discounts with physical stores. They expect then to federate Groupon enough buyers to justify a discount. The products are then removed in shops with vouchers distributed by the site. This system undoubtedly has its flaws and is certainly enhanced, but the leading role, played by Groupon is certainly a value. To evaluate the scholarship in the coming months, when the peace will be a little income.
We had not seen such volatility on the stock market since the rating is downgraded the sovereign debt of the United States in August by Standard & Poor's. The "VIX", the Chicago Board Options Exchange Volatility Index, panicked earlier this week, climbing 42% a few days before the IPO of the most anticipated of the year.
Yet all the uncertainties have not flown one stroke of one. But the banks that led the transaction, Goldman Sachs, Morgan Stanley and Credit Suisse had put everything on their side to turn the challenge into success. The low number of shares that were offered for sale has obviously created a scarcity effect, which contributed to the soaring title.
The bubble burst there as quickly as it rose? From the time the $ 700 million public offering raised Friday only 5% of total capitalization, difficult to draw definitive conclusions of the fireworks that has seen Wall Street. A number of investors bought a ticket to board the train, not sure they want to go to the end.
When asked these questions, the IPO of Groupon, beyond the inevitable excesses that surrounds values Internet, has, nevertheless, some virtues: First, the model is fairly cash intensive. This new money is likely to consolidate. Second, market pressure will help structure this model, the push towards greater maturity.
Finally, he devotes an idea whose time has come: that which is to converge physical and Internet commerce. The both have had in recent years in the fear of cannibalizing each other. But more and more players now realize that the future of distribution lies in a balanced mix between the two. Groupon has perhaps not yet found the magic formula. The idea, remember, is to negotiate discounts with physical stores. They expect then to federate Groupon enough buyers to justify a discount. The products are then removed in shops with vouchers distributed by the site. This system undoubtedly has its flaws and is certainly enhanced, but the leading role, played by Groupon is certainly a value. To evaluate the scholarship in the coming months, when the peace will be a little income.
Dow jumps 208 after Greek referendum is scrapped
The Dow Jones industrial average jumped 208 points Thursday after Greece scrapped a referendum on unpopular budget cuts and the European Central Bank unexpectedly cut interest rates. It was the second straight day of big gains in the stock market.
The European Central Bank surprised markets by cutting its benchmark interest rate a quarter of a percentage point, to 1.25 percent. The bank had increased its key rate twice this year, but that was before Mario Draghi took over as head of the bank this week. The announcement sent stocks higher as investors hoped that lowering borrowing costs would help prevent a recession in Europe.
Buying intensified in the early afternoon after Greek Prime Minister George Papandreou abandoned his effort to put package of austerity measures to a public vote. A "no" vote could have caused chaos in the European financial system by leading to a messy default on Greece's debt.
Investors and other European nations were shocked by Papandreou's announcement Monday that he would call a referendum on a financial rescue package worked out just last week after months of negotiations between Greece and its international lenders.
The Dow lost 573 points the first two days of this week as investors feared that Europe's plan to preserve its currency union was in jeopardy. Markets in the U.S. and Europe have been highly sensitive to headlines out of Europe as leaders there try to avoid a financial calamity. Investors have become fatigued as various efforts to resolve the situation seem to continually run into trouble.
"Today it looks like a deal in Europe is more likely and that's making the market positive, but who knows what people will think tomorrow," said Uri Landesman, president of Platinum Partners.
The Dow Jones industrial average gained 208.43 points, or 1.8 percent, to 12,044.47. The average closed above 12,000 for only the third time since the start of August. The Dow last closed above that level on Friday. Even with the gain of 386 points over the last two days, the Dow is still 1.5 percent below where it closed on Friday.
The S&P 500 rose 23.25, or 1.9 percent, to 1,261.15. The Nasdaq composite added 57.99, or 2.2 percent, to 2,697.97.
Reports on the U.S. economy also lifted stocks. The number of people who applied for unemployment benefits last week dipped to the lowest level in five weeks. The number of applications fell below 400,000 for only the third time since April. That's a sign layoffs are easing. Companies also made more orders to U.S. factories in September.
"All of the economic data is pointing to a slow-growing economy, and putting the recession fears to rest," said Bill Stone, chief investment strategist at PNC Asset Management Group.
Companies reporting quarterly earnings were among those making the biggest gains.
Estee Lauder Cos. jumped 18 percent, the top stock in the S&P 500. The company's quarterly earnings soared 46 percent on strong global sales, which beat analysts' expectations. The company also raised its annual earnings outlook.
Alpha Natural Resources rose 13.3 percent. The coal producer's profit more than doubled, helped by its acquisition of rival Massey Energy Co. and higher prices for coal used to make steel. The results topped estimates.
Qualcomm Inc. gained 7.5 percent, after the chip-maker for mobile phones said rising smartphone demand helped it post results that were stronger than analysts were expecting.
Kraft Foods Inc. rose 3.3 percent. The food company, whose brands include Nabisco and Maxwell House, reported a 22 percent jump in income thanks to higher prices on some of its products. Kraft also raised its full-year profit forecast.
Kellogg Co. dropped 7.6 percent after its quarterly earnings fell even further than analysts had expected. The cereal and snack maker was hit by higher costs for ingredients.
The European Central Bank surprised markets by cutting its benchmark interest rate a quarter of a percentage point, to 1.25 percent. The bank had increased its key rate twice this year, but that was before Mario Draghi took over as head of the bank this week. The announcement sent stocks higher as investors hoped that lowering borrowing costs would help prevent a recession in Europe.
Buying intensified in the early afternoon after Greek Prime Minister George Papandreou abandoned his effort to put package of austerity measures to a public vote. A "no" vote could have caused chaos in the European financial system by leading to a messy default on Greece's debt.
Investors and other European nations were shocked by Papandreou's announcement Monday that he would call a referendum on a financial rescue package worked out just last week after months of negotiations between Greece and its international lenders.
The Dow lost 573 points the first two days of this week as investors feared that Europe's plan to preserve its currency union was in jeopardy. Markets in the U.S. and Europe have been highly sensitive to headlines out of Europe as leaders there try to avoid a financial calamity. Investors have become fatigued as various efforts to resolve the situation seem to continually run into trouble.
"Today it looks like a deal in Europe is more likely and that's making the market positive, but who knows what people will think tomorrow," said Uri Landesman, president of Platinum Partners.
The Dow Jones industrial average gained 208.43 points, or 1.8 percent, to 12,044.47. The average closed above 12,000 for only the third time since the start of August. The Dow last closed above that level on Friday. Even with the gain of 386 points over the last two days, the Dow is still 1.5 percent below where it closed on Friday.
The S&P 500 rose 23.25, or 1.9 percent, to 1,261.15. The Nasdaq composite added 57.99, or 2.2 percent, to 2,697.97.
Reports on the U.S. economy also lifted stocks. The number of people who applied for unemployment benefits last week dipped to the lowest level in five weeks. The number of applications fell below 400,000 for only the third time since April. That's a sign layoffs are easing. Companies also made more orders to U.S. factories in September.
"All of the economic data is pointing to a slow-growing economy, and putting the recession fears to rest," said Bill Stone, chief investment strategist at PNC Asset Management Group.
Companies reporting quarterly earnings were among those making the biggest gains.
Estee Lauder Cos. jumped 18 percent, the top stock in the S&P 500. The company's quarterly earnings soared 46 percent on strong global sales, which beat analysts' expectations. The company also raised its annual earnings outlook.
Alpha Natural Resources rose 13.3 percent. The coal producer's profit more than doubled, helped by its acquisition of rival Massey Energy Co. and higher prices for coal used to make steel. The results topped estimates.
Qualcomm Inc. gained 7.5 percent, after the chip-maker for mobile phones said rising smartphone demand helped it post results that were stronger than analysts were expecting.
Kraft Foods Inc. rose 3.3 percent. The food company, whose brands include Nabisco and Maxwell House, reported a 22 percent jump in income thanks to higher prices on some of its products. Kraft also raised its full-year profit forecast.
Kellogg Co. dropped 7.6 percent after its quarterly earnings fell even further than analysts had expected. The cereal and snack maker was hit by higher costs for ingredients.
Part-time nanny helps end Bank of America fee
Recent college graduate Molly Katchpole has $2,200 to her name, holds down two part-time jobs -- one of them as a nanny -- and describes her financial situation as paycheck-to-paycheck.
So when Bank of America announced that it would begin charging debit card users a $5 monthly fee, Katchpole got mad and started an online petition. More than 300,000 people signed it.
And on Tuesday, the nation's second-largest bank backed down.
Now the 22-year-old is getting the credit for the end of the debit card fee.
Katchpole is a Rhode Island native who lives in Washington, where she does freelance work for a political communications firm that supports unions and other Democratic-leaning causes. She describes herself as a progressive and says she stands in solidarity with the Occupy Wall Street movement. She has a tattoo below her collarbone that reads: "Empathy."
"I believe that is the most important quality that a person can have, is the ability to empathize with others," she said. "When I first started the petition, and even now, people were saying, `Just close your bank account and go to another bank.' I think people are forgetting that not everybody can easily close their bank and join a credit union. There are some neighborhoods in this country where there's only one bank."
Shortly after Bank of America announced plans a month ago to start charging the fee, she put the petition on Change.org, a nonpartisan website that allows individuals and advocacy groups to launch campaigns on any topic.
After the bank relented, Change.org declared on its home page: "We Won."
"It's an awesome display of the potential power that real people can have when they come together," said Ben Rattray, the site's founder and CEO.
Katchpole credited the popularity of her petition to good timing, calling it "stupid" for Bank of America to announce the fees in the midst of the Wall Street protests. Her boyfriend, Ben Sisko, said Katchpole succeeded because she expressed her outrage so clearly and concisely.
The petition read, in part: "The American people bailed out Bank of America during a financial crisis the banks helped create. ... How can you justify squeezing another $60 a year from your debit card customers? This is despicable."
A Bank of America executive called Katchpole more than three weeks ago to explain the fees, but by then it had already lost her as a customer to a community bank.
Bank spokesman Ernesto Anguill declined to say precisely what role the petition played. He said Bank of America scrapped the fees after listening to public reaction and gauging the competition from other banks that backed off plans for similar charges.
The outcry over Bank of America prompted other major banks, including JPMorgan Chase & Co. and Wells Fargo & Co., to cancel tests of their own debit card fees.
Michael McCauley, a spokesman for Consumers Union, the advocacy arm of Consumer Reports Magazine, said the petition was a sign that Bank of America had misjudged its customers, just as Netflix did when it tried to divide its DVD-rental and online streaming businesses. He called Katchpole an inspiration to consumers who feel they are being treated poorly.
"The debit card issue pushed her over the edge, and she took action, and look at the impact that she's had. I think it's remarkable," he said.
Katchpole grew up in Cumberland, R.I., a town of 33,000, and graduated last spring from Roger Williams University in Bristol, R.I., with a degree in art and architectural history. She was on the debate team in high school and wrote letters to her local paper.
"When she had something that she wanted to say, she usually said it, and if she felt other people needed to know, then she found the avenue to express it," said her mother, Kathy Katchpole, a physical therapist. "She's always had pretty strong views one way or the other."
She and her boyfriend live in a tiny, one-bedroom basement apartment, where they split the $1,250 rent. Sisko works as a paralegal, and Katchpole is hoping to find a full-time job in politics.
Katchpole's parents and boyfriend remain Bank of America customers.
"I haven't decided if I'm going to switch yet," Sisko said. After all, he said, "the petition worked!"
So when Bank of America announced that it would begin charging debit card users a $5 monthly fee, Katchpole got mad and started an online petition. More than 300,000 people signed it.
And on Tuesday, the nation's second-largest bank backed down.
Now the 22-year-old is getting the credit for the end of the debit card fee.
Katchpole is a Rhode Island native who lives in Washington, where she does freelance work for a political communications firm that supports unions and other Democratic-leaning causes. She describes herself as a progressive and says she stands in solidarity with the Occupy Wall Street movement. She has a tattoo below her collarbone that reads: "Empathy."
"I believe that is the most important quality that a person can have, is the ability to empathize with others," she said. "When I first started the petition, and even now, people were saying, `Just close your bank account and go to another bank.' I think people are forgetting that not everybody can easily close their bank and join a credit union. There are some neighborhoods in this country where there's only one bank."
Shortly after Bank of America announced plans a month ago to start charging the fee, she put the petition on Change.org, a nonpartisan website that allows individuals and advocacy groups to launch campaigns on any topic.
After the bank relented, Change.org declared on its home page: "We Won."
"It's an awesome display of the potential power that real people can have when they come together," said Ben Rattray, the site's founder and CEO.
Katchpole credited the popularity of her petition to good timing, calling it "stupid" for Bank of America to announce the fees in the midst of the Wall Street protests. Her boyfriend, Ben Sisko, said Katchpole succeeded because she expressed her outrage so clearly and concisely.
The petition read, in part: "The American people bailed out Bank of America during a financial crisis the banks helped create. ... How can you justify squeezing another $60 a year from your debit card customers? This is despicable."
A Bank of America executive called Katchpole more than three weeks ago to explain the fees, but by then it had already lost her as a customer to a community bank.
Bank spokesman Ernesto Anguill declined to say precisely what role the petition played. He said Bank of America scrapped the fees after listening to public reaction and gauging the competition from other banks that backed off plans for similar charges.
The outcry over Bank of America prompted other major banks, including JPMorgan Chase & Co. and Wells Fargo & Co., to cancel tests of their own debit card fees.
Michael McCauley, a spokesman for Consumers Union, the advocacy arm of Consumer Reports Magazine, said the petition was a sign that Bank of America had misjudged its customers, just as Netflix did when it tried to divide its DVD-rental and online streaming businesses. He called Katchpole an inspiration to consumers who feel they are being treated poorly.
"The debit card issue pushed her over the edge, and she took action, and look at the impact that she's had. I think it's remarkable," he said.
Katchpole grew up in Cumberland, R.I., a town of 33,000, and graduated last spring from Roger Williams University in Bristol, R.I., with a degree in art and architectural history. She was on the debate team in high school and wrote letters to her local paper.
"When she had something that she wanted to say, she usually said it, and if she felt other people needed to know, then she found the avenue to express it," said her mother, Kathy Katchpole, a physical therapist. "She's always had pretty strong views one way or the other."
She and her boyfriend live in a tiny, one-bedroom basement apartment, where they split the $1,250 rent. Sisko works as a paralegal, and Katchpole is hoping to find a full-time job in politics.
Katchpole's parents and boyfriend remain Bank of America customers.
"I haven't decided if I'm going to switch yet," Sisko said. After all, he said, "the petition worked!"
AMD to cut 1,400 workers, new CEO's first big move
Advanced Micro Devices Inc. is cutting some 1,400 workers as a weak computer market and manufacturing delays have hurt the world's second-biggest maker of microprocessors for PCs.
The layoffs announced Thursday amount to about 12 percent of the company's 12,000 workers and are the first big move by AMD's new CEO, Rory Read, who was hired from Lenovo Group in August. The cuts will unfold over the next five months.
AMD is struggling with an industrywide problem: PC sales growth, particularly in the U.S. and Europe, has been anemic because of the down economy and competition from smartphones and tablets.
Although PC shipments continue to grow, the pace is slowing sharply -- and more than market research firms IDC and Gartner Inc. expected. That has raised concerns about the strength of the market going in to the holiday shopping season.
Most of AMD's business is in chips for PCs; it doesn't have a meaningful presence in smartphones and tablets.
Read's job in large part is to help devise a strategy for AMD to penetrate computing markets where it and rival Intel Corp. have been largely absent. The battle has taken on a new dimension as AMD's and Intel's market share in PCs has reached a steady balance for years -- Intel's chips are in about 80 percent of the world's PCs, and AMD's are in essentially the rest.
Not having much presence in mobile devices has hurt AMD more than Intel because of its smaller size and it was a key reason AMD ousted Read's predecessor, Dirk Meyer, in January.
Meyer in some ways had an excuse: He was orchestrating triage as he tried to manage the company's spinoff of its manufacturing operations while fending off Intel and overseeing the launch of an important new type of chip for AMD. That chip can process sophisticated graphics and general data on the same piece of silicon, a technical achievement.
The rise of mobile devices, meanwhile, is benefiting chip makers such as Qualcomm Inc. and Texas Instruments Inc., whose processors were designed to consume less power.
A variety of financial struggles has led to several rounds of layoffs at AMD in recent years. It let about 3,300 workers go in 2008 and 2009.
Contributing to Thursday's announcement were manufacturing problems that have postponed the shipment of AMD's newest chips, which it calls "accelerated processing units."
The layoffs and other unspecified operational changes are expected to save $200 million in 2012. A company spokesman said is severance benefits will vary based on location and local laws.
AMD shares increased 5 cents, or nearly 1 percent, to $5.78 in extended trading Thursday after the cuts were announced.
The layoffs announced Thursday amount to about 12 percent of the company's 12,000 workers and are the first big move by AMD's new CEO, Rory Read, who was hired from Lenovo Group in August. The cuts will unfold over the next five months.
AMD is struggling with an industrywide problem: PC sales growth, particularly in the U.S. and Europe, has been anemic because of the down economy and competition from smartphones and tablets.
Although PC shipments continue to grow, the pace is slowing sharply -- and more than market research firms IDC and Gartner Inc. expected. That has raised concerns about the strength of the market going in to the holiday shopping season.
Most of AMD's business is in chips for PCs; it doesn't have a meaningful presence in smartphones and tablets.
Read's job in large part is to help devise a strategy for AMD to penetrate computing markets where it and rival Intel Corp. have been largely absent. The battle has taken on a new dimension as AMD's and Intel's market share in PCs has reached a steady balance for years -- Intel's chips are in about 80 percent of the world's PCs, and AMD's are in essentially the rest.
Not having much presence in mobile devices has hurt AMD more than Intel because of its smaller size and it was a key reason AMD ousted Read's predecessor, Dirk Meyer, in January.
Meyer in some ways had an excuse: He was orchestrating triage as he tried to manage the company's spinoff of its manufacturing operations while fending off Intel and overseeing the launch of an important new type of chip for AMD. That chip can process sophisticated graphics and general data on the same piece of silicon, a technical achievement.
The rise of mobile devices, meanwhile, is benefiting chip makers such as Qualcomm Inc. and Texas Instruments Inc., whose processors were designed to consume less power.
A variety of financial struggles has led to several rounds of layoffs at AMD in recent years. It let about 3,300 workers go in 2008 and 2009.
Contributing to Thursday's announcement were manufacturing problems that have postponed the shipment of AMD's newest chips, which it calls "accelerated processing units."
The layoffs and other unspecified operational changes are expected to save $200 million in 2012. A company spokesman said is severance benefits will vary based on location and local laws.
AMD shares increased 5 cents, or nearly 1 percent, to $5.78 in extended trading Thursday after the cuts were announced.
Retailers report solid sales gains in October
Americans were shopping in October, but they were spending at a slower clip than expected as they faced a barrage of bad economic news.
October revenue at stores open at least a year -- an indicator of a retailer's health -- rose 3.7 percent from the same month a year ago, according to the International Council of Shopping Centers' tally of 25 retailers.
But October's increase is weaker than the 5.5 percent revenue gain in the prior month. And 13 of 19 retailers missed Wall Street estimates for October revenue, according to Thomson Reuters, including big merchants like Macy's, Saks and Target.
The results reflect Americans' cautious spending habits. Consumers continue to worry about the challenges of the weak economy, including high unemployment and a weak housing market. At the same time, those who have jobs have paid down their debt since the recession and are starting to feel more comfortable about spending. Retailers hope they'll continue to do so during the holiday shopping season, but so far, consumers aren't giving them a clear sign they will.
"The softer trend in my mind raises questions of whether this is a new trend or a temporary respite before it gets back to stronger spending," said Michael P. Niemira, chief economist at the International Council of Shopping Centers.
The National Retail Federation, the nation's largest retail trade group, predicts revenue in November and December will rise 2.8 percent to $465.6 billion this year. That would be smaller than the 5.2 percent increase last year, but higher than the average over the last 10 years.
"Consumers are regrouping and retrenching and saving their pennies for the holiday season," said Ken Perkins, president of Retail Metrics, a research firm
But stores likely will have to work hard to get people to part with their money during the season.
Many retailers already are beginning to offer holiday discounts to draw shoppers in early. Amazon.com, for instance, just launched a sale this week that included such deals as a10-carat white gold diamond studded earrings marked down to $270 from $1,199.99.
"This is an effort to stimulate the holiday season to be longer and longer," said Janet Hoffman, managing director of Accenture's global retailing practice.
Retailers are doing more than discounting. Some, like Wal-Mart Stores Inc., are offering to match the cheaper prices consumers find at competitors. And other stores, including Target and Macy's, this week have announced expanded hours on Black Friday, the day after Thanksgiving and the official kickoff to the holiday season.
Retailers have some reason to be optimistic that the incentives will work.
Although October results weren't as promising as retailers had hoped, revenue was impacted by unseasonably warm weather during the beginning of the month and then a snowstorm at the end of the month. And most merchants reported revenue that was only slightly off from Wall Street estimates.
Wholesale club operators Costco Wholesale Corp.'s revenue at stores open at least a year climbed 9 percent in October, for instance, slightly lower than the 9.2 percent increase analysts surveyed by Thomson Reuters had predicted. And Limited Brands said revenue at stores open at least a year rose 6 percent in October, down from analysts' estimates of 6.2 percent.
A few merchants reported much more disappointing results. Target's 3.3 percent increase was below the 4.2 percent gain expected by Wall Street.
And Macy's Inc. posted a 2.2 percent increase in revenue at stores opened at least a year, which fell short of the 3.6 percent increase that Wall Street analysts had anticipated. The department store chain said revenue was hurt in part by the snowstorm at the end of the month that kept shoppers at home and warm weather during the rest of the month that kept them from buying winter clothes.
Luxury retailers, which had benefited from brisk spending by their well-heeled shoppers, also showed a slowdown. Saks Inc. had a 1.8 percent increase, which was much lower than the 5.4 percent gain that analysts had expected.
October revenue at stores open at least a year -- an indicator of a retailer's health -- rose 3.7 percent from the same month a year ago, according to the International Council of Shopping Centers' tally of 25 retailers.
But October's increase is weaker than the 5.5 percent revenue gain in the prior month. And 13 of 19 retailers missed Wall Street estimates for October revenue, according to Thomson Reuters, including big merchants like Macy's, Saks and Target.
The results reflect Americans' cautious spending habits. Consumers continue to worry about the challenges of the weak economy, including high unemployment and a weak housing market. At the same time, those who have jobs have paid down their debt since the recession and are starting to feel more comfortable about spending. Retailers hope they'll continue to do so during the holiday shopping season, but so far, consumers aren't giving them a clear sign they will.
"The softer trend in my mind raises questions of whether this is a new trend or a temporary respite before it gets back to stronger spending," said Michael P. Niemira, chief economist at the International Council of Shopping Centers.
The National Retail Federation, the nation's largest retail trade group, predicts revenue in November and December will rise 2.8 percent to $465.6 billion this year. That would be smaller than the 5.2 percent increase last year, but higher than the average over the last 10 years.
"Consumers are regrouping and retrenching and saving their pennies for the holiday season," said Ken Perkins, president of Retail Metrics, a research firm
But stores likely will have to work hard to get people to part with their money during the season.
Many retailers already are beginning to offer holiday discounts to draw shoppers in early. Amazon.com, for instance, just launched a sale this week that included such deals as a10-carat white gold diamond studded earrings marked down to $270 from $1,199.99.
"This is an effort to stimulate the holiday season to be longer and longer," said Janet Hoffman, managing director of Accenture's global retailing practice.
Retailers are doing more than discounting. Some, like Wal-Mart Stores Inc., are offering to match the cheaper prices consumers find at competitors. And other stores, including Target and Macy's, this week have announced expanded hours on Black Friday, the day after Thanksgiving and the official kickoff to the holiday season.
Retailers have some reason to be optimistic that the incentives will work.
Although October results weren't as promising as retailers had hoped, revenue was impacted by unseasonably warm weather during the beginning of the month and then a snowstorm at the end of the month. And most merchants reported revenue that was only slightly off from Wall Street estimates.
Wholesale club operators Costco Wholesale Corp.'s revenue at stores open at least a year climbed 9 percent in October, for instance, slightly lower than the 9.2 percent increase analysts surveyed by Thomson Reuters had predicted. And Limited Brands said revenue at stores open at least a year rose 6 percent in October, down from analysts' estimates of 6.2 percent.
A few merchants reported much more disappointing results. Target's 3.3 percent increase was below the 4.2 percent gain expected by Wall Street.
And Macy's Inc. posted a 2.2 percent increase in revenue at stores opened at least a year, which fell short of the 3.6 percent increase that Wall Street analysts had anticipated. The department store chain said revenue was hurt in part by the snowstorm at the end of the month that kept shoppers at home and warm weather during the rest of the month that kept them from buying winter clothes.
Luxury retailers, which had benefited from brisk spending by their well-heeled shoppers, also showed a slowdown. Saks Inc. had a 1.8 percent increase, which was much lower than the 5.4 percent gain that analysts had expected.
Starbucks 4Q profit up 29 percent
Starbucks Corp. reported Thursday that its fiscal fourth-quarter profit jumped nearly 29 percent and beat Wall Street estimates on strong sales around the globe.
The coffee company has been a standout among its peers in the tough global economy because consumers have started indulging in more small luxuries like lattes. It has also expanded overseas, increased the number of products it offers and upped its presence in grocery stores and other retailers to help drive growth.
"Starbucks Coffee Company has never been stronger or better positioned for sustained, profitable growth than it is today," Starbucks CEO said Howard Schultz said Thursday. "I have never in my career been more excited or more optimistic about where Starbucks is and where we are going as a company, or felt more strongly that we have the tools in the right places to get us there."
The company reported after the market closed that it earned $358.5 million, or 47 cents per share. That's up from $278.9 million, or 37 cents per share, last year. After adjusting for one-time gains and an extra week in the prior quarter, the company earned 37 cents compared with 32 cents last year.
Revenue rose 7 percent to $3 billion, with some benefit from foreign exchange rates. That jumped 15 percent after adjusting for the extra week last year.
The results beat expectations of 36 cents per share on revenue of $2.95 billion, according to FactSet.
Starbucks is facing a number of challenges from the drag of a weak economy on its customers to higher costs it's paying for commodities such as coffee and milk. But strong sales offset these pressures. The company said revenue was bolstered by new drinks and food products, an expanded loyalty program and an emphasis on customer service and quality.
Revenue in its stores open at least a year, which is considered a key financial indicator as it strips away the impact of recently opened or closed stores, increased 9 percent during the period. This measure jumped 10 percent in the U.S. where consumers bought up more pumpkin spice lattes and bistro boxes. It increased 6 percent for its international business, with strong gains in China and some softness in the U.K. and Europe, where consumers have been hit the hardest by economic problems.
Starbucks also reported that its consumer products business showed major gains during the quarter. The company has expanded the number of products it sells in grocery stores, such as its Via instant coffee. And it recently took its distribution to these retailers back in house, ending an agreement with Kraft Foods Inc. Those moves helped Starbucks generate revenue of $717.9 million, a 20 percent increase over last year, for its consumer products segment
"Starbucks today is executing in all markets and across all channels," Schultz said in a statement. "We have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond."
The company's full fiscal year net income jumped nearly 32 percent to $1.25 billion, or $1.62 per share. That's up from $945.6 million, or $1.24 per share, in the prior year. Starbucks earned $1.52 on an adjusted basis, versus $1.23 in the prior year.
Revenue increased 7 percent to $11.7 billion for the year.
Starbucks says it expects to earn $1.75 to $1.82 for the coming fiscal year on an adjusted basis, with the bulk of the growth coming in the second half of the year as the pressure from higher costs for coffee and other commodities is expected to ease. Analysts expect Starbucks to earn $1.82 per share.
Coffee bean costs are expected to continue to increase in the coming year but the company said it has locked in some pricing contracts through 2013, which should reduce the pressure on its margins over time. The company also expects its sales growth to continue, which helps offset its higher costs.
The company, which operates about 17,000 stores around the globe, plans to add 800 new stores in the coming year.
Starbucks also announced Thursday that it plans to repurchase up to 20 million shares of its common stock. It also declared a cash dividend of 17 cents per share, up 31 percent from its most recent 13 cents per share dividend. The dividend will be paid Dec. 2 to shareholders of record as of Nov. 17.
Shares of the company rose $1.40, more than 3 percent, to $42.58 in after-hours trading.
The coffee company has been a standout among its peers in the tough global economy because consumers have started indulging in more small luxuries like lattes. It has also expanded overseas, increased the number of products it offers and upped its presence in grocery stores and other retailers to help drive growth.
"Starbucks Coffee Company has never been stronger or better positioned for sustained, profitable growth than it is today," Starbucks CEO said Howard Schultz said Thursday. "I have never in my career been more excited or more optimistic about where Starbucks is and where we are going as a company, or felt more strongly that we have the tools in the right places to get us there."
The company reported after the market closed that it earned $358.5 million, or 47 cents per share. That's up from $278.9 million, or 37 cents per share, last year. After adjusting for one-time gains and an extra week in the prior quarter, the company earned 37 cents compared with 32 cents last year.
Revenue rose 7 percent to $3 billion, with some benefit from foreign exchange rates. That jumped 15 percent after adjusting for the extra week last year.
The results beat expectations of 36 cents per share on revenue of $2.95 billion, according to FactSet.
Starbucks is facing a number of challenges from the drag of a weak economy on its customers to higher costs it's paying for commodities such as coffee and milk. But strong sales offset these pressures. The company said revenue was bolstered by new drinks and food products, an expanded loyalty program and an emphasis on customer service and quality.
Revenue in its stores open at least a year, which is considered a key financial indicator as it strips away the impact of recently opened or closed stores, increased 9 percent during the period. This measure jumped 10 percent in the U.S. where consumers bought up more pumpkin spice lattes and bistro boxes. It increased 6 percent for its international business, with strong gains in China and some softness in the U.K. and Europe, where consumers have been hit the hardest by economic problems.
Starbucks also reported that its consumer products business showed major gains during the quarter. The company has expanded the number of products it sells in grocery stores, such as its Via instant coffee. And it recently took its distribution to these retailers back in house, ending an agreement with Kraft Foods Inc. Those moves helped Starbucks generate revenue of $717.9 million, a 20 percent increase over last year, for its consumer products segment
"Starbucks today is executing in all markets and across all channels," Schultz said in a statement. "We have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond."
The company's full fiscal year net income jumped nearly 32 percent to $1.25 billion, or $1.62 per share. That's up from $945.6 million, or $1.24 per share, in the prior year. Starbucks earned $1.52 on an adjusted basis, versus $1.23 in the prior year.
Revenue increased 7 percent to $11.7 billion for the year.
Starbucks says it expects to earn $1.75 to $1.82 for the coming fiscal year on an adjusted basis, with the bulk of the growth coming in the second half of the year as the pressure from higher costs for coffee and other commodities is expected to ease. Analysts expect Starbucks to earn $1.82 per share.
Coffee bean costs are expected to continue to increase in the coming year but the company said it has locked in some pricing contracts through 2013, which should reduce the pressure on its margins over time. The company also expects its sales growth to continue, which helps offset its higher costs.
The company, which operates about 17,000 stores around the globe, plans to add 800 new stores in the coming year.
Starbucks also announced Thursday that it plans to repurchase up to 20 million shares of its common stock. It also declared a cash dividend of 17 cents per share, up 31 percent from its most recent 13 cents per share dividend. The dividend will be paid Dec. 2 to shareholders of record as of Nov. 17.
Shares of the company rose $1.40, more than 3 percent, to $42.58 in after-hours trading.
Oil above $94 amid signs of US economy improving
Oil prices hovered above $94 a barrel Friday in Asia amid signs the U.S. economy may be improving.
Benchmark crude for December delivery was up 22 cents at $94.29 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $94.07 in New York on Thursday.
Brent crude was up 10 cents at $110.93 a barrel on the ICE Futures Exchange in London.
Crude has jumped about 25 percent from $75 on Oct. 4 amid growing investor optimism that the U.S. economy will avoid a recession.
On Thursday, the Labor Department reported that the number of people who applied for unemployment benefits dipped slightly last week to the lowest level in five weeks. And the Commerce Department said factory orders had the biggest jump in six months in September.
"The general global economic outlook inched away from the edge of collapse," energy trader and consultant The Schork Group said in a report.
Investors will be closely watching the latest unemployment figures for October due to be released later Friday.
Doubts that a plan announced by European leaders last week will contain Greece's debt crisis weighed on oil prices.
After meeting with German Chancellor Angela Merkel and French President Nicolas Sarkozy earlier this week, Greek Prime Minister George Papandreou backed off earlier pledges to call a referendum on his country's bailout package. But traders are still worried the plan will not be fully implemented or enough to stanch Europe rising debt levels.
"Markets are skeptical of the latest final agreement to stave off European contagion," Schork said.
In other Nymex trading, heating oil rose 0.7 cent to $3.05 per gallon and gasoline futures gained 1 cent at $2.65 per gallon. Natural gas added 3.8 cents at $3.82 per 1,000 cubic feet.
Benchmark crude for December delivery was up 22 cents at $94.29 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $94.07 in New York on Thursday.
Brent crude was up 10 cents at $110.93 a barrel on the ICE Futures Exchange in London.
Crude has jumped about 25 percent from $75 on Oct. 4 amid growing investor optimism that the U.S. economy will avoid a recession.
On Thursday, the Labor Department reported that the number of people who applied for unemployment benefits dipped slightly last week to the lowest level in five weeks. And the Commerce Department said factory orders had the biggest jump in six months in September.
"The general global economic outlook inched away from the edge of collapse," energy trader and consultant The Schork Group said in a report.
Investors will be closely watching the latest unemployment figures for October due to be released later Friday.
Doubts that a plan announced by European leaders last week will contain Greece's debt crisis weighed on oil prices.
After meeting with German Chancellor Angela Merkel and French President Nicolas Sarkozy earlier this week, Greek Prime Minister George Papandreou backed off earlier pledges to call a referendum on his country's bailout package. But traders are still worried the plan will not be fully implemented or enough to stanch Europe rising debt levels.
"Markets are skeptical of the latest final agreement to stave off European contagion," Schork said.
In other Nymex trading, heating oil rose 0.7 cent to $3.05 per gallon and gasoline futures gained 1 cent at $2.65 per gallon. Natural gas added 3.8 cents at $3.82 per 1,000 cubic feet.
Economy poised for modest job gains in October
Employers likely added only enough jobs in October to keep the unemployment rate from rising, reflecting their cautious outlook in the sluggish economy.
Economists predict employers added a net total of 100,000 jobs last month, according to a survey by FactSet. That's just enough to keep up with population growth.
More than twice that number is needed to lower the unemployment rate, which is projected to stay at 9.1 percent for the fourth straight month.
Many employers are hesitant to step up hiring until they see steady demand from consumers.
Healthier consumer spending was the key reason the economy expanded at an annual pace of 2.5 percent in the July-September quarter, the best quarterly growth in a year. Growth in consumer spending tripled from the spring, despite renewed recession fears and wide fluctuations in the stock market.
But economists worry that the summer spending gains can't be sustained. For one thing, Americans spent more in the third quarter even though they earned less. And they used their savings to make up the difference.
Without more jobs and higher wages, consumers are likely to pare spending in the months ahead. Consumer spending is important because it accounts for 70 percent of economic activity.
The economy generated an average of 96,000 jobs per month in the third quarter, the same as in the preceding three months. That's down from 166,000 in the first three months of this year.
A raft of data Thursday offered a mixed picture for the economy and hiring.
The number of people applying for unemployment benefits dropped below 400,000 for only the third time this year, the government said. Still, applications would need to fall below 375,000 to signal sustained job gains. They haven't been at that level since February.
Services companies, which employ about 90 percent of the work force, hired more in October after cutting jobs in the previous month, according to a survey by the Institute for Supply Management. Overall growth for the service sector was mostly unchanged from September's slow pace.
Companies ordered more factory goods in September for a third straight month. The gain occurred largely because businesses spent more on industrial machinery, computers and software. It's a sign that in the sluggish economy, many companies are investing in equipment but not in new hires.
Businesses are getting more out their existing work forces while paying less to employ them. Worker productivity rose in the July-September quarter by the most in a year and a half. At the same time, labor costs fell.
Higher productivity is generally a good thing. It can raise standards of living by enabling companies to pay workers more without raising their prices and increasing inflation. But without strong and sustained customer demand, companies are unlikely to hire.
Federal Reserve Chairman Ben Bernanke said Wednesday that growth is likely to be "frustratingly slow," after the Fed sharply lowered its economic projections for the next two years.
The Fed now says the economy will likely expand no more than 1.7 percent for all of 2011. That's down from its June forecast of 2.7 percent to 2.9 percent. And it predicted growth of only 2.5 percent to 2.9 percent next year, nearly a percentage point lower than its June estimate.
The Fed said it doesn't expect the unemployment rate to be any lower this year. And it sees unemployment averaging 8.6 percent by the end of next year.
Economists predict employers added a net total of 100,000 jobs last month, according to a survey by FactSet. That's just enough to keep up with population growth.
More than twice that number is needed to lower the unemployment rate, which is projected to stay at 9.1 percent for the fourth straight month.
Many employers are hesitant to step up hiring until they see steady demand from consumers.
Healthier consumer spending was the key reason the economy expanded at an annual pace of 2.5 percent in the July-September quarter, the best quarterly growth in a year. Growth in consumer spending tripled from the spring, despite renewed recession fears and wide fluctuations in the stock market.
But economists worry that the summer spending gains can't be sustained. For one thing, Americans spent more in the third quarter even though they earned less. And they used their savings to make up the difference.
Without more jobs and higher wages, consumers are likely to pare spending in the months ahead. Consumer spending is important because it accounts for 70 percent of economic activity.
The economy generated an average of 96,000 jobs per month in the third quarter, the same as in the preceding three months. That's down from 166,000 in the first three months of this year.
A raft of data Thursday offered a mixed picture for the economy and hiring.
The number of people applying for unemployment benefits dropped below 400,000 for only the third time this year, the government said. Still, applications would need to fall below 375,000 to signal sustained job gains. They haven't been at that level since February.
Services companies, which employ about 90 percent of the work force, hired more in October after cutting jobs in the previous month, according to a survey by the Institute for Supply Management. Overall growth for the service sector was mostly unchanged from September's slow pace.
Companies ordered more factory goods in September for a third straight month. The gain occurred largely because businesses spent more on industrial machinery, computers and software. It's a sign that in the sluggish economy, many companies are investing in equipment but not in new hires.
Businesses are getting more out their existing work forces while paying less to employ them. Worker productivity rose in the July-September quarter by the most in a year and a half. At the same time, labor costs fell.
Higher productivity is generally a good thing. It can raise standards of living by enabling companies to pay workers more without raising their prices and increasing inflation. But without strong and sustained customer demand, companies are unlikely to hire.
Federal Reserve Chairman Ben Bernanke said Wednesday that growth is likely to be "frustratingly slow," after the Fed sharply lowered its economic projections for the next two years.
The Fed now says the economy will likely expand no more than 1.7 percent for all of 2011. That's down from its June forecast of 2.7 percent to 2.9 percent. And it predicted growth of only 2.5 percent to 2.9 percent next year, nearly a percentage point lower than its June estimate.
The Fed said it doesn't expect the unemployment rate to be any lower this year. And it sees unemployment averaging 8.6 percent by the end of next year.
Regulator gave $10k to NJ Dems as Corzine ran
Gary Gensler, the regulator overseeing the investigation of Jon Corzine's collapsed securities firm, built close ties to Corzine as they rose through the ranks of Goldman Sachs. Later, they collaborated on Capitol Hill to pass an anti-corporate fraud law.
When Corzine ran for New Jersey governor, Gensler gave $10,000 to the state Democratic Party, which was trying to get Corzine elected.
Now, Gensler, head of the Commodity Futures Trading Commission, is leading an inquiry into how hundreds of millions vanished last week from client accounts at Corzine's firm, MF Global.
At a Senate hearing Thursday, Gensler had harsh words for Corzine's company.
"You don't put your hand in the cash register; you just don't," Gensler said.
He said MF Global's failure to separate clients' money from its own assets violated "the core foundation" of investor protection.
But Gensler's long and deep ties to Corzine pose an apparent conflict of interest that could taint the probe's findings, experts say. Some say he should remove himself from the case.
"The appearance of a conflict is there, there's no question," said Jay Lorsch, a professor at Harvard Business School. "It might be wise for Mr. Gensler to recuse himself from this particular investigation."
A similar appeal came from Sen. Charles Grassley, R-Iowa, of the Senate Agriculture Committee, which oversees Gensler's agency.
"It's hard to see how the chairman could be completely objective in looking out for wronged investors when he has such strong ties to the principal of the failed firm," Grassley said in a statement Thursday night. "It seems recusal would be the best outcome for investors."
Gensler gave $10,000 to the New Jersey Democratic Party in August 2005 as Corzine ran for governor, election records show. Corzine was elected later that year.
The donation followed years of collaboration between the two men on both Wall Street and Capitol Hill. Gensler and Corzine had worked alongside each other on Goldman's trading floor after they joined the firm in the 1970s.
Gensler rose to become Goldman's co-head of finance before leaving in 1997. Corzine left Goldman in 1999, after serving as chairman and CEO.
The two worked together again when Corzine was a senator and Gensler worked on Capitol Hill. As an advisor to Sen. Paul Sarbanes, D-Md., Gensler helped Sarbanes craft the accounting law that bears his name. At the time, Corzine was a senator from New Jersey.
Speaking at a Princeton University conference last year on the day before Corzine's wedding, Gensler described working with Corzine as a "privilege."
He recalled that when the full Senate voted on the Sarbanes-Oxley accounting law, "Jon was sitting in the presiding chair, and I was staffing Chairman Sarbanes on the floor."
Surveying the audience at Princeton's Financial Institutions and Regulation Colloquium, Gensler quipped, "Jon, your life has changed a lot since our days together on a trading floor if this is your idea of a bachelor party."
Representatives for Gensler and Corzine declined to comment on their relationship or to say whether Gensler should recuse himself.
But the investigation's high profile and Corzine's connections make it especially important that those involved avoid any appearance of a conflict of interest, experts in corporate governance said. To do so, Gensler should step away from the case, they said.
"I'm not sure what other options there are," said Naveen Reddy, a research analyst with the firm GMI Inc. "Gensler is a highly qualified guy, but these cozy relationships tend to taint the oversight in these big blowups."
MF Global filed for bankruptcy protection on Monday after a disastrous bet on European debt spooked its investors and trading partners. It was the eighth-biggest U.S. bankruptcy and the largest collapse on Wall Street since Lehman Bros. It also was the first major U.S. firm to fall because of bets on European debt.
Gensler and other regulators forced it to file after MF Global acknowledged that hundreds of millions in clients' money was missing. The FBI is examining whether the company broke criminal laws.
Securities companies are required to keep clients' money separate from their own assets. That way, clients don't have to worry about their cash if the company fails.
Corzine maintained close ties to Washington even after leaving for the New Jersey governor's mansion. He is a top fundraiser for President Barack Obama who has helped raise at least $500,000 for Obama's re-election since April, according to records released by the campaign.
In an April securities filing, MF Global offered investors in its bonds an extra 1 percent interest if Corzine left "due to his appointment to a federal position by the President of the United States."
Officials with the Obama campaign and the Democratic National Committee said any contributions from Corzine would be refunded if he's charged with any wrongdoing -- criminal or civil -- in the investigation. That would also apply to any MF Global employees who might be charged in the probe, if they contributed to the president's re-election efforts, the officials said.
The chairman of the Republican National Committee said that the Obama campaign should return all the money that Corzine helped raise.
Examiners from the Securities and Exchange Commission have been reviewing the company's operations since last week, Chairman Mary Schapiro said Thursday.
SEC examiners have been reviewing MF Global's finances and the events leading up to its bankruptcy filing, officials say. And staffers from the agency's trading and markets division have been monitoring the liquidation proceeding.
When Corzine ran for New Jersey governor, Gensler gave $10,000 to the state Democratic Party, which was trying to get Corzine elected.
Now, Gensler, head of the Commodity Futures Trading Commission, is leading an inquiry into how hundreds of millions vanished last week from client accounts at Corzine's firm, MF Global.
At a Senate hearing Thursday, Gensler had harsh words for Corzine's company.
"You don't put your hand in the cash register; you just don't," Gensler said.
He said MF Global's failure to separate clients' money from its own assets violated "the core foundation" of investor protection.
But Gensler's long and deep ties to Corzine pose an apparent conflict of interest that could taint the probe's findings, experts say. Some say he should remove himself from the case.
"The appearance of a conflict is there, there's no question," said Jay Lorsch, a professor at Harvard Business School. "It might be wise for Mr. Gensler to recuse himself from this particular investigation."
A similar appeal came from Sen. Charles Grassley, R-Iowa, of the Senate Agriculture Committee, which oversees Gensler's agency.
"It's hard to see how the chairman could be completely objective in looking out for wronged investors when he has such strong ties to the principal of the failed firm," Grassley said in a statement Thursday night. "It seems recusal would be the best outcome for investors."
Gensler gave $10,000 to the New Jersey Democratic Party in August 2005 as Corzine ran for governor, election records show. Corzine was elected later that year.
The donation followed years of collaboration between the two men on both Wall Street and Capitol Hill. Gensler and Corzine had worked alongside each other on Goldman's trading floor after they joined the firm in the 1970s.
Gensler rose to become Goldman's co-head of finance before leaving in 1997. Corzine left Goldman in 1999, after serving as chairman and CEO.
The two worked together again when Corzine was a senator and Gensler worked on Capitol Hill. As an advisor to Sen. Paul Sarbanes, D-Md., Gensler helped Sarbanes craft the accounting law that bears his name. At the time, Corzine was a senator from New Jersey.
Speaking at a Princeton University conference last year on the day before Corzine's wedding, Gensler described working with Corzine as a "privilege."
He recalled that when the full Senate voted on the Sarbanes-Oxley accounting law, "Jon was sitting in the presiding chair, and I was staffing Chairman Sarbanes on the floor."
Surveying the audience at Princeton's Financial Institutions and Regulation Colloquium, Gensler quipped, "Jon, your life has changed a lot since our days together on a trading floor if this is your idea of a bachelor party."
Representatives for Gensler and Corzine declined to comment on their relationship or to say whether Gensler should recuse himself.
But the investigation's high profile and Corzine's connections make it especially important that those involved avoid any appearance of a conflict of interest, experts in corporate governance said. To do so, Gensler should step away from the case, they said.
"I'm not sure what other options there are," said Naveen Reddy, a research analyst with the firm GMI Inc. "Gensler is a highly qualified guy, but these cozy relationships tend to taint the oversight in these big blowups."
MF Global filed for bankruptcy protection on Monday after a disastrous bet on European debt spooked its investors and trading partners. It was the eighth-biggest U.S. bankruptcy and the largest collapse on Wall Street since Lehman Bros. It also was the first major U.S. firm to fall because of bets on European debt.
Gensler and other regulators forced it to file after MF Global acknowledged that hundreds of millions in clients' money was missing. The FBI is examining whether the company broke criminal laws.
Securities companies are required to keep clients' money separate from their own assets. That way, clients don't have to worry about their cash if the company fails.
Corzine maintained close ties to Washington even after leaving for the New Jersey governor's mansion. He is a top fundraiser for President Barack Obama who has helped raise at least $500,000 for Obama's re-election since April, according to records released by the campaign.
In an April securities filing, MF Global offered investors in its bonds an extra 1 percent interest if Corzine left "due to his appointment to a federal position by the President of the United States."
Officials with the Obama campaign and the Democratic National Committee said any contributions from Corzine would be refunded if he's charged with any wrongdoing -- criminal or civil -- in the investigation. That would also apply to any MF Global employees who might be charged in the probe, if they contributed to the president's re-election efforts, the officials said.
The chairman of the Republican National Committee said that the Obama campaign should return all the money that Corzine helped raise.
Examiners from the Securities and Exchange Commission have been reviewing the company's operations since last week, Chairman Mary Schapiro said Thursday.
SEC examiners have been reviewing MF Global's finances and the events leading up to its bankruptcy filing, officials say. And staffers from the agency's trading and markets division have been monitoring the liquidation proceeding.
World stocks up after Greece drops referendum plan
World stock markets rose Friday amid relief Greece's prime minister had abandoned a referendum on the country's bailout but gains in Europe were muted ahead of monthly U.S. employment figures.
Oil prices rose above $94 a barrel amid signs the U.S. economy may be improving. The dollar was higher against the euro but lower against the yen.
European stocks were mostly higher in early trading. Britain's FTSE 100 rose 0.3 percent to 5,560.45. Germany's DAX fell 0.3 percent to 6,114.04 while France's CAC-40 was 0.2 percent higher at 3,201.16.
Wall Street appeared headed toward a lower opening ahead of a closely-watched monthly employment report, with Dow Jones industrial futures down 0.1 percent at 11,959 and S&P 500 futures losing 0.2 percent at 1,252.70.
Trading ended higher in Asia. Japan's Nikkei 225 index rose 1.9 percent to close at 8,801.40. Hong Kong's Hang Seng jumped 3.1 percent to 19,842.79. South Korea's Kospi gained 3.1 percent to 1,928.41.
Mainland Chinese shares tracked advances in the region, with the benchmark Shanghai Composite Index adding 0.8 percent to 2,528.29 while the Shenzhen Composite Index gained 0.6 percent to 1,071.34. Benchmarks in Australia, Singapore, Taiwan, India, Indonesia and Thailand also rose.
The gains reversed four straight days of losses starting Monday. That's when Greek Prime Minister George Papandreou shocked financial markets by unexpectedly announcing he would call a referendum on a European austerity plan aimed at restoring the country's solvency.
Markets remain jittery about how Europe will resolve its debt crisis. The risks to the region's economy were also a clear factor in the ECB's surprise decision Thursday to cut interest rates by a quarter of a percentage point to 1.25 percent.
Analysts expect economic growth in Europe to slow in the final three months of the year or even go into reverse.
Still, Greece's decision to call off the referendum allayed concerns that it would reject the bailout plan -- which could lead Greece into a massive debt default that could slam banks and other investors that were heavy purchasers of its bonds.
"The equity markets are reacting quite positively to what's happening in Europe," said Lee Kok Joo, head of research at Phillip Securities in Singapore. "There is still a lot of uncertainty, and the market is just reacting day by day to what is happening."
Investors will be closely watching the latest U.S. unemployment figures for October due to be released later Friday, Lee said.
Economists predict employers added a net total of 100,000 jobs last month, according to a survey by FactSet. That's just enough to keep up with population growth and stop the already high unemployment rate from rising.
Bargain hunting and buying fervor led to broad gains, including shares in airlines and heavy equipment. Hong Kong-listed Air China Ltd. jumped 6.8 percent, while Korean Air Lines Co. rose 2.9 percent. Japan's Komatsu Ltd., a world leader in equipment making, soared 6.9 percent.
Rising commodities prices, including industrial and precious metals, boosted mining shares. Zining Mining Group Co., China's largest gold miner, added 6.3 percent. Australia's BHP Billiton, the world's largest mining company, gained 3.9 percent while rival Rio Tinto Ltd. surged 5.3 percent. Fortescue Metals Group soared 7.9 percent.
Kirin Holdings Co., Japan's No. 2 brewer, rose 1.5 percent after announcing it has taken full control of Brazilian beverage maker Schincariol by acquiring its holding company, Kyodo News Agency reported.
The acquisition is part of Kirin's effort to expand into emerging markets, where rapid economic growth and rising demand are expected at a time when Japan's domestic beer market is shrinking.
Sony Corp., the Japanese electronics and entertainment conglomerate, tumbled 7.9 percent, after earlier this week reporting a 27 billion yen ($346 million) loss for the latest quarter and downgrading its annual earnings forecast, battered by the strong yen and poor sales of flat panel TVs.
Mainland Chinese shares in shipbuilding, development zones and nonferrous metals led the gains while shares in media and cement companies weakened after earlier gains.
"The advance was mainly due to what happened overseas. While there is some pressure of profit-taking in the short term, the gaining trend will continue," said Cai Dagui, an analyst at Ping'an Securities, based in Shenzhen.
Suzhou New District Hi-Tech Ind. Co. gained 5 percent while CSSC Jiangnan Heavy Industry Co. added 4.4 percent. Shanghai Xinhua Media Co. lost 1.9 percent.
The developments in Europe on Thursday helped send Wall Street to a second day of big gains. The Dow Jones industrial average gained 1.8 percent to 12,044.47. The S&P 500 rose 1.9 percent to 1,261.15 and the Nasdaq composite added 2.2 percent to 2,697.97.
Reports on the U.S. economy also lifted stocks by lowering fears of a new recession. The number of people who applied for unemployment benefits last week dipped to the lowest level in five weeks. The number of applications fell below 400,000 for only the third time since April.
Companies also ordered more factory goods in September for a third straight month.
Benchmark crude for December delivery was up 17 cents to $94.24 in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $94.07 a barrel on Thursday, helped by the better U.S. and European news.
In currencies, the euro fell to $1.3794 from $1.3834 late Thursday in New York. The dollar slipped to 78.05 yen from 78.09 yen.
Oil prices rose above $94 a barrel amid signs the U.S. economy may be improving. The dollar was higher against the euro but lower against the yen.
European stocks were mostly higher in early trading. Britain's FTSE 100 rose 0.3 percent to 5,560.45. Germany's DAX fell 0.3 percent to 6,114.04 while France's CAC-40 was 0.2 percent higher at 3,201.16.
Wall Street appeared headed toward a lower opening ahead of a closely-watched monthly employment report, with Dow Jones industrial futures down 0.1 percent at 11,959 and S&P 500 futures losing 0.2 percent at 1,252.70.
Trading ended higher in Asia. Japan's Nikkei 225 index rose 1.9 percent to close at 8,801.40. Hong Kong's Hang Seng jumped 3.1 percent to 19,842.79. South Korea's Kospi gained 3.1 percent to 1,928.41.
Mainland Chinese shares tracked advances in the region, with the benchmark Shanghai Composite Index adding 0.8 percent to 2,528.29 while the Shenzhen Composite Index gained 0.6 percent to 1,071.34. Benchmarks in Australia, Singapore, Taiwan, India, Indonesia and Thailand also rose.
The gains reversed four straight days of losses starting Monday. That's when Greek Prime Minister George Papandreou shocked financial markets by unexpectedly announcing he would call a referendum on a European austerity plan aimed at restoring the country's solvency.
Markets remain jittery about how Europe will resolve its debt crisis. The risks to the region's economy were also a clear factor in the ECB's surprise decision Thursday to cut interest rates by a quarter of a percentage point to 1.25 percent.
Analysts expect economic growth in Europe to slow in the final three months of the year or even go into reverse.
Still, Greece's decision to call off the referendum allayed concerns that it would reject the bailout plan -- which could lead Greece into a massive debt default that could slam banks and other investors that were heavy purchasers of its bonds.
"The equity markets are reacting quite positively to what's happening in Europe," said Lee Kok Joo, head of research at Phillip Securities in Singapore. "There is still a lot of uncertainty, and the market is just reacting day by day to what is happening."
Investors will be closely watching the latest U.S. unemployment figures for October due to be released later Friday, Lee said.
Economists predict employers added a net total of 100,000 jobs last month, according to a survey by FactSet. That's just enough to keep up with population growth and stop the already high unemployment rate from rising.
Bargain hunting and buying fervor led to broad gains, including shares in airlines and heavy equipment. Hong Kong-listed Air China Ltd. jumped 6.8 percent, while Korean Air Lines Co. rose 2.9 percent. Japan's Komatsu Ltd., a world leader in equipment making, soared 6.9 percent.
Rising commodities prices, including industrial and precious metals, boosted mining shares. Zining Mining Group Co., China's largest gold miner, added 6.3 percent. Australia's BHP Billiton, the world's largest mining company, gained 3.9 percent while rival Rio Tinto Ltd. surged 5.3 percent. Fortescue Metals Group soared 7.9 percent.
Kirin Holdings Co., Japan's No. 2 brewer, rose 1.5 percent after announcing it has taken full control of Brazilian beverage maker Schincariol by acquiring its holding company, Kyodo News Agency reported.
The acquisition is part of Kirin's effort to expand into emerging markets, where rapid economic growth and rising demand are expected at a time when Japan's domestic beer market is shrinking.
Sony Corp., the Japanese electronics and entertainment conglomerate, tumbled 7.9 percent, after earlier this week reporting a 27 billion yen ($346 million) loss for the latest quarter and downgrading its annual earnings forecast, battered by the strong yen and poor sales of flat panel TVs.
Mainland Chinese shares in shipbuilding, development zones and nonferrous metals led the gains while shares in media and cement companies weakened after earlier gains.
"The advance was mainly due to what happened overseas. While there is some pressure of profit-taking in the short term, the gaining trend will continue," said Cai Dagui, an analyst at Ping'an Securities, based in Shenzhen.
Suzhou New District Hi-Tech Ind. Co. gained 5 percent while CSSC Jiangnan Heavy Industry Co. added 4.4 percent. Shanghai Xinhua Media Co. lost 1.9 percent.
The developments in Europe on Thursday helped send Wall Street to a second day of big gains. The Dow Jones industrial average gained 1.8 percent to 12,044.47. The S&P 500 rose 1.9 percent to 1,261.15 and the Nasdaq composite added 2.2 percent to 2,697.97.
Reports on the U.S. economy also lifted stocks by lowering fears of a new recession. The number of people who applied for unemployment benefits last week dipped to the lowest level in five weeks. The number of applications fell below 400,000 for only the third time since April.
Companies also ordered more factory goods in September for a third straight month.
Benchmark crude for December delivery was up 17 cents to $94.24 in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $94.07 a barrel on Thursday, helped by the better U.S. and European news.
In currencies, the euro fell to $1.3794 from $1.3834 late Thursday in New York. The dollar slipped to 78.05 yen from 78.09 yen.
Groupon raises $700M with IPO at $20 per share
Daily deals pioneer Groupon raised about $700 million with an initial public offering of stock priced well above expectations.
The IPO was set late Thursday at $20 per share, above the anticipated range of $16 to $18. The higher price indicated investors are eager to snap up the Chicago-based company's shares.
Groupon Inc. is expected to make its trading debut Friday on the Nasdaq Stock Market under the ticker symbol "GRPN." That will give a better indication of general sentiment for the company's stock, since it will be the first time that a broader audience will be able to buy it.
The IPO's price gives based Groupon a market value of $12.7 billion. That makes Groupon's IPO the second largest by an Internet company behind only that of Google Inc. in 2004.
The online search leader made its public debut at a market cap of $23.1 billion seven years ago. In comparison, LinkedIn Corp. went public in May with a market value of $4.3 billion and was worth $8.4 billion at the end of trading Thursday.
The pricing is a milestone in a process that served as a reality check for Groupon, a rapidly growing company that has evoked memories of the dot-com boom's exuberance. Coming at a time of worldwide market turbulence and deep economic woes, Groupon's IPO has been closely watched by fellow Web startups looking to follow a similar path.
It's a lofty appraisal for a service that started just three years ago, but a big comedown from the $25 billion estimate floated when the company filed its IPO plans in June, months after rejecting a $6 billion buyout offer from Google.
Groupon began in 2008 when computer programmer Andrew Mason figured out how to get people excited about the low-margin coupon business.
The company sends out daily emails to subscribers offering a chance to buy discount deals for anything from spa services to messenger bags to restaurant meals, provided enough people sign up for the deal. The company then takes a cut of what people pay and gives the rest to the merchant. Though some businesses see this as good advertising, others have complained that Groupon leaves them inundated with coupon-clasping bargain hunters who never return.
The company started in Chicago and quickly branched out across the country and, shortly thereafter, around the globe. At the end of September, Groupon operated in 175 markets in North America and 45 countries. The company had 143 million subscribers at the end of September, and sold 33 million Groupons in the July-September quarter.
Groupon faced a number of difficulties leading up to its IPO. It drew scrutiny from the Securities and Exchange Commission, and rival companies and critics have been popping up left and right.
"This is not Facebook where they can do no wrong," said longtime IPO analyst Scott Sweet, the owner of IPO Boutique. He called Groupon an "accident waiting to happen."
Sweet pointed to problems the company has had with the SEC that have led Groupon to restate the way it accounts for revenue, cutting it in half from what it originally reported. The analyst is also one of those who question the company's business model, its high marketing expenses and frantic hiring pace that has swelled its ranks to more than 10,000 employees. That is about four times as many as Facebook.
Another worrisome sign is the amount of Groupon stock being offered to the public. The company is "floating" about 5.5 percent of available shares -- 35 million -- which is the well below the percentage that many prominent tech companies have offered in their IPOs, including Google, online retailer Amazon.com Inc. and, more recently, Internet radio service Pandora Media Inc. and professional networking site LinkedIn Corp. This has raised concerns that Groupon is trying to boost demand -- and thus its valuation -- by limiting supply.
Mutual funds, pension funds and other major money managers got the first crack at buying most of the IPO's 35 million shares late Thursday because stock in these offerings is typically sold to investment bankers' top customers. "Main Street" investors will get their first chance at Groupon on Friday.
In addition to the 35 million shares Groupon sold through its IPO, the company also granted an option to its underwriters -- which include, among others, Morgan Stanley, Goldman Sachs & Co. and Credit Suisse -- to buy over the next 30 days an additional 5.25 million shares to cover over-allotments.
The sale of the 35 million shares mean Groupon's initial public offering of stock raised about $700 million, minus investment banking fees and other expenses
In filings with the SEC, Groupon said it hoped to raise $479 million, after expenses and presuming the stock priced at $17 per share, or $552 million if it also sold the 4.5 million in over-allotment shares. It did not go into details on how it plans to spend the money, though it did specify it won't need to use it to pay for its operations, including marketing expenses, during the next 12 months.
Neither CEO Mason, 31, nor executive chairman and fellow co-founder Eric Lefkofsky, 42, are selling any shares in the IPO. Mason's stake in the company is now worth about $938.7 million, given the $20 IPO share price, while the stake of Leftofsky, who is Groupon's largest investor and shareholder, is worth about $2.6 billion.
They've made out well previously from the sale of stock, though, according to SEC filings: Lefkofsky, Groupon's largest investor and shareholder, received $398 million while Mason snagged $28 million.
Ortutay reported from New York.
The IPO was set late Thursday at $20 per share, above the anticipated range of $16 to $18. The higher price indicated investors are eager to snap up the Chicago-based company's shares.
Groupon Inc. is expected to make its trading debut Friday on the Nasdaq Stock Market under the ticker symbol "GRPN." That will give a better indication of general sentiment for the company's stock, since it will be the first time that a broader audience will be able to buy it.
The IPO's price gives based Groupon a market value of $12.7 billion. That makes Groupon's IPO the second largest by an Internet company behind only that of Google Inc. in 2004.
The online search leader made its public debut at a market cap of $23.1 billion seven years ago. In comparison, LinkedIn Corp. went public in May with a market value of $4.3 billion and was worth $8.4 billion at the end of trading Thursday.
The pricing is a milestone in a process that served as a reality check for Groupon, a rapidly growing company that has evoked memories of the dot-com boom's exuberance. Coming at a time of worldwide market turbulence and deep economic woes, Groupon's IPO has been closely watched by fellow Web startups looking to follow a similar path.
It's a lofty appraisal for a service that started just three years ago, but a big comedown from the $25 billion estimate floated when the company filed its IPO plans in June, months after rejecting a $6 billion buyout offer from Google.
Groupon began in 2008 when computer programmer Andrew Mason figured out how to get people excited about the low-margin coupon business.
The company sends out daily emails to subscribers offering a chance to buy discount deals for anything from spa services to messenger bags to restaurant meals, provided enough people sign up for the deal. The company then takes a cut of what people pay and gives the rest to the merchant. Though some businesses see this as good advertising, others have complained that Groupon leaves them inundated with coupon-clasping bargain hunters who never return.
The company started in Chicago and quickly branched out across the country and, shortly thereafter, around the globe. At the end of September, Groupon operated in 175 markets in North America and 45 countries. The company had 143 million subscribers at the end of September, and sold 33 million Groupons in the July-September quarter.
Groupon faced a number of difficulties leading up to its IPO. It drew scrutiny from the Securities and Exchange Commission, and rival companies and critics have been popping up left and right.
"This is not Facebook where they can do no wrong," said longtime IPO analyst Scott Sweet, the owner of IPO Boutique. He called Groupon an "accident waiting to happen."
Sweet pointed to problems the company has had with the SEC that have led Groupon to restate the way it accounts for revenue, cutting it in half from what it originally reported. The analyst is also one of those who question the company's business model, its high marketing expenses and frantic hiring pace that has swelled its ranks to more than 10,000 employees. That is about four times as many as Facebook.
Another worrisome sign is the amount of Groupon stock being offered to the public. The company is "floating" about 5.5 percent of available shares -- 35 million -- which is the well below the percentage that many prominent tech companies have offered in their IPOs, including Google, online retailer Amazon.com Inc. and, more recently, Internet radio service Pandora Media Inc. and professional networking site LinkedIn Corp. This has raised concerns that Groupon is trying to boost demand -- and thus its valuation -- by limiting supply.
Mutual funds, pension funds and other major money managers got the first crack at buying most of the IPO's 35 million shares late Thursday because stock in these offerings is typically sold to investment bankers' top customers. "Main Street" investors will get their first chance at Groupon on Friday.
In addition to the 35 million shares Groupon sold through its IPO, the company also granted an option to its underwriters -- which include, among others, Morgan Stanley, Goldman Sachs & Co. and Credit Suisse -- to buy over the next 30 days an additional 5.25 million shares to cover over-allotments.
The sale of the 35 million shares mean Groupon's initial public offering of stock raised about $700 million, minus investment banking fees and other expenses
In filings with the SEC, Groupon said it hoped to raise $479 million, after expenses and presuming the stock priced at $17 per share, or $552 million if it also sold the 4.5 million in over-allotment shares. It did not go into details on how it plans to spend the money, though it did specify it won't need to use it to pay for its operations, including marketing expenses, during the next 12 months.
Neither CEO Mason, 31, nor executive chairman and fellow co-founder Eric Lefkofsky, 42, are selling any shares in the IPO. Mason's stake in the company is now worth about $938.7 million, given the $20 IPO share price, while the stake of Leftofsky, who is Groupon's largest investor and shareholder, is worth about $2.6 billion.
They've made out well previously from the sale of stock, though, according to SEC filings: Lefkofsky, Groupon's largest investor and shareholder, received $398 million while Mason snagged $28 million.
Ortutay reported from New York.
Whole Foods fiscal 4Q net income up 31 percent
Whole Foods Market Inc. said Wednesday that its fiscal fourth-quarter profit rose 31 percent, beating analysts' expectations as sales rose.
But the company's outlook for next year's profit fell just short of what analysts forecast on average, and its shares fell after hours.
The natural and organic grocery store chain reported net income of $75.5 million, or 42 cents per share, up from $57.5 million, or 33 cents per share, a year earlier. Its revenue rose 12 percent to $2.35 billion.
Analysts expected net income of 41 cents per share but higher revenue -- the $2.36 billion -- according to FactSet.
For the next fiscal year, which began in the current period, the Austin, Texas-based grocer expects to earn $2.21 to $2.26 per share and revenue growth of 13 percent to 15 percent over 2011, which implies a range of $11.4 billion to $11.6 billion. Analysts were expecting $2.26 per share and revenue of $11.6 billion.
Whole Foods' shares dropped $3.14, or 4.5 percent, to $67.42 after hours. They had closed up $1.05 at $70.56.
Many analysts were worried the weak economy would crimp Whole Foods' sales both because it sells some higher-priced items that consumers can do without in tough times and because rising food costs are holding back demand. The USDA estimates food costs will rise about 4 percent for 2011 overall.
Whole Foods Chief Operating Officer A.C. Gallo said the company's costs had risen, particularly in the meat and dairy aisles.
"We've realized that we've had to be really careful ... because we don't feel like we really want to push those (prices) very much farther (onto consumers)," Gallo told investors during a conference call Wednesday.
The recession slammed Whole Foods, but it revamped its operation by cutting costs, slowing expansion and offering more lower-priced options. The strategy worked: Whole Foods' sales have risen.
That success is partly to blame for investors' disappointment with the company's most recent results, said Matt Arnold, an analyst with Edward Jones.
"Investors have become accustomed to this company blowing out the current quarter and raising the bar for the next one," Arnold said.
For all of fiscal 2011, Whole Foods reported net income of $342.6 million, or $1.93 per share, compared with $245.8 million, or $1.43 per share, in fiscal 2010. Revenue in 2011 was $10.1 billion, compared with $9 billion in 2010.
The results met analysts' expectations for net income but fell just below the $10.12 billion in revenue analysts anticipated, according to FactSet.
Whole Foods also said it boosted its dividend 40 percent to 14 cents per share and would buy back $200 million worth of its stock.
But the company's outlook for next year's profit fell just short of what analysts forecast on average, and its shares fell after hours.
The natural and organic grocery store chain reported net income of $75.5 million, or 42 cents per share, up from $57.5 million, or 33 cents per share, a year earlier. Its revenue rose 12 percent to $2.35 billion.
Analysts expected net income of 41 cents per share but higher revenue -- the $2.36 billion -- according to FactSet.
For the next fiscal year, which began in the current period, the Austin, Texas-based grocer expects to earn $2.21 to $2.26 per share and revenue growth of 13 percent to 15 percent over 2011, which implies a range of $11.4 billion to $11.6 billion. Analysts were expecting $2.26 per share and revenue of $11.6 billion.
Whole Foods' shares dropped $3.14, or 4.5 percent, to $67.42 after hours. They had closed up $1.05 at $70.56.
Many analysts were worried the weak economy would crimp Whole Foods' sales both because it sells some higher-priced items that consumers can do without in tough times and because rising food costs are holding back demand. The USDA estimates food costs will rise about 4 percent for 2011 overall.
Whole Foods Chief Operating Officer A.C. Gallo said the company's costs had risen, particularly in the meat and dairy aisles.
"We've realized that we've had to be really careful ... because we don't feel like we really want to push those (prices) very much farther (onto consumers)," Gallo told investors during a conference call Wednesday.
The recession slammed Whole Foods, but it revamped its operation by cutting costs, slowing expansion and offering more lower-priced options. The strategy worked: Whole Foods' sales have risen.
That success is partly to blame for investors' disappointment with the company's most recent results, said Matt Arnold, an analyst with Edward Jones.
"Investors have become accustomed to this company blowing out the current quarter and raising the bar for the next one," Arnold said.
For all of fiscal 2011, Whole Foods reported net income of $342.6 million, or $1.93 per share, compared with $245.8 million, or $1.43 per share, in fiscal 2010. Revenue in 2011 was $10.1 billion, compared with $9 billion in 2010.
The results met analysts' expectations for net income but fell just below the $10.12 billion in revenue analysts anticipated, according to FactSet.
Whole Foods also said it boosted its dividend 40 percent to 14 cents per share and would buy back $200 million worth of its stock.
News Corp 1Q profit falls on charges from scandal
News Corp. said its first-quarter net income dropped 5 percent due to the cost of closing a scandal-wracked tabloid and dropping its takeover bid for British Sky Broadcasting.
The media conglomerate, controlled by CEO Rupert Murdoch, is under fire for hacking phones in Britain.
Its net income for July through September fell to $738 million, or 28 cents per share, from $775 million, or 30 cents per share, a year ago.
Absent about $221 million in special charges, including $91 million in restructuring costs linked to the U.K. newspaper business, adjusted earnings came to 32 cents per share, beating the 29 cents per share that analysts expected on average, according to FactSet.
Revenue grew 7 percent to $7.96 billion, helped by higher fees for pay TV channels like Fox News and the successful movie "Rise of the Planet of the Apes." That also beat the $7.63 billion expected by analysts.
Advertising revenue at its domestic pay TV channels such as FX grew 13 percent for the quarter. That topped the 9 percent advertising growth at media rival Time Warner Inc.'s Turner networks and the 11 percent adjusted growth at Discovery Communications Inc., which operates channels such as Discovery and Animal Planet.
"It's in line with Discovery, some of the best companies in the group," said media company analyst Vasily Karasyov with Susquehanna Financial Group. "It's a good quarter, definitely."
The company said Wednesday that it remains on track for higher adjusted operating income in the fiscal year that ends next June by "low to mid-teen" percentages from the $4.98 billion it posted last year.
News Corp.'s shares rose 30 cents, or 1.8 percent, to $17.20 in after-hours trading following the release of its earnings. The shares had closed up 21 cents, or 1.3 percent, at $16.90 in the regular session.
Murdoch, the 80-year-old CEO who controls News Corp. through a family trust that owns nearly 40 percent of the voting shares, did not participate in a conference call to take questions from analysts and journalists.
Earlier Wednesday, Vanity Fair previewed an article which said Rupert Murdoch had asked his son James, the company's heir apparent, to take a leave amid the phone hacking scandal this summer, before changing his mind after a sleepless night. The story appears in Vanity Fair's December issue, which hits newsstands on Thursday.
Chief Operating Officer Chase Carey said Wednesday that the company had no plans to oust James Murdoch, who is currently the No. 3 at the company as its deputy chief operating officer.
"We have great confidence in James," Carey said. "James has done a good job and we are not contemplating any changes."
Carey said, however, that the board takes "seriously" a protest vote by a majority of voting shareholders not affiliated with the family against the re-election of Murdoch's sons James and Lachlan to the board.
"The board continues to evolve," he said. "We're proactively looking for feedback from our shareholders."
James Murdoch, as former head of News Corp.'s European and Asian operations, has come under increasing pressure over his handling of the affair and is due to testify before British lawmakers for a second time on Nov. 10.
Analyst Thomas Eagan with Collins Stewart said investors have learned to shrug off a string of damaging headlines related to the scandal and pointed to the company's improved TV channel profit margins, especially compared to decreased TV profits at Time Warner.
Any management shake-up would benefit Carey, a Wall Street darling who helped build DirecTV into a satellite TV powerhouse, Eagan said.
Carey re-joined News Corp. as COO in 2009 and since then, he's helped the company quickly sell money-losing social networking site Myspace and institute a $5 billion share buyback plan that is more than one-third complete.
"He's already changed management's perspective at News Corp. in the short time he's been there," Eagan said. "If there's any change in the management structure, it'll likely be a positive for Chase Carey, which the Street would like."
The media conglomerate, controlled by CEO Rupert Murdoch, is under fire for hacking phones in Britain.
Its net income for July through September fell to $738 million, or 28 cents per share, from $775 million, or 30 cents per share, a year ago.
Absent about $221 million in special charges, including $91 million in restructuring costs linked to the U.K. newspaper business, adjusted earnings came to 32 cents per share, beating the 29 cents per share that analysts expected on average, according to FactSet.
Revenue grew 7 percent to $7.96 billion, helped by higher fees for pay TV channels like Fox News and the successful movie "Rise of the Planet of the Apes." That also beat the $7.63 billion expected by analysts.
Advertising revenue at its domestic pay TV channels such as FX grew 13 percent for the quarter. That topped the 9 percent advertising growth at media rival Time Warner Inc.'s Turner networks and the 11 percent adjusted growth at Discovery Communications Inc., which operates channels such as Discovery and Animal Planet.
"It's in line with Discovery, some of the best companies in the group," said media company analyst Vasily Karasyov with Susquehanna Financial Group. "It's a good quarter, definitely."
The company said Wednesday that it remains on track for higher adjusted operating income in the fiscal year that ends next June by "low to mid-teen" percentages from the $4.98 billion it posted last year.
News Corp.'s shares rose 30 cents, or 1.8 percent, to $17.20 in after-hours trading following the release of its earnings. The shares had closed up 21 cents, or 1.3 percent, at $16.90 in the regular session.
Murdoch, the 80-year-old CEO who controls News Corp. through a family trust that owns nearly 40 percent of the voting shares, did not participate in a conference call to take questions from analysts and journalists.
Earlier Wednesday, Vanity Fair previewed an article which said Rupert Murdoch had asked his son James, the company's heir apparent, to take a leave amid the phone hacking scandal this summer, before changing his mind after a sleepless night. The story appears in Vanity Fair's December issue, which hits newsstands on Thursday.
Chief Operating Officer Chase Carey said Wednesday that the company had no plans to oust James Murdoch, who is currently the No. 3 at the company as its deputy chief operating officer.
"We have great confidence in James," Carey said. "James has done a good job and we are not contemplating any changes."
Carey said, however, that the board takes "seriously" a protest vote by a majority of voting shareholders not affiliated with the family against the re-election of Murdoch's sons James and Lachlan to the board.
"The board continues to evolve," he said. "We're proactively looking for feedback from our shareholders."
James Murdoch, as former head of News Corp.'s European and Asian operations, has come under increasing pressure over his handling of the affair and is due to testify before British lawmakers for a second time on Nov. 10.
Analyst Thomas Eagan with Collins Stewart said investors have learned to shrug off a string of damaging headlines related to the scandal and pointed to the company's improved TV channel profit margins, especially compared to decreased TV profits at Time Warner.
Any management shake-up would benefit Carey, a Wall Street darling who helped build DirecTV into a satellite TV powerhouse, Eagan said.
Carey re-joined News Corp. as COO in 2009 and since then, he's helped the company quickly sell money-losing social networking site Myspace and institute a $5 billion share buyback plan that is more than one-third complete.
"He's already changed management's perspective at News Corp. in the short time he's been there," Eagan said. "If there's any change in the management structure, it'll likely be a positive for Chase Carey, which the Street would like."
Subscribe to:
Posts (Atom)