Home » Archive for February, 2013

Hewlett Packard Stock Rallies

Hewlett Packard shares rallied for the first time since 2008 when Mark Hurd was still the head of the company. Present Chief Executive Meg Whitman received praises for the company’s fiscal quarter but some analysts criticized her announcement that the company will not be broken up. Shares of HP increased 12.3 percent to close at $19.20, which is the company’s biggest one day gain since November 18, 2008. That was when shares gained 14.5 percent after the company announced its better-than-expected results. Last Thursday, HP announced revenues... 
 

MasterPass unveiled in Barcelona by MasterCard

At the Barcelona Mobile World Congress on Monday, MasterCard announced its entrance into the mobile payment market. The new unveiling has been awaited for some time and MasterPass was finally made public for the first time today. The new payment system will incorporate a merchant’s mobile friendly checkout and a consumer digital wallet for purchases both online and in-store. For years, payment services have been offered by MasterCard online, but they always revolved around their own cards, with the numbers being filled out individually by the... 
 

Sequester Deadline Worrisome for Businesses

Only five days remain before the deadline for the White House and Congress to reach an agreement avoiding cuts across the board totally $85 billion divided between domestic programs and defense. The Congressional Budget Office announced it believes the cuts would make over 750,000 people lose their jobs. Little sign of movement from both Republicans and Democrats is taking place after a week’s recess on Capitol Hill. The Federal Aviation Administration, in a detailed warning over the sequestration said that starting sometime in April, people traveling... 
 

Corn Profits Higher than Soybeans for 2013

Corn is seen to be more profitable than soybeans this year. But in the longer term view, planting more corn in 2013 would result to lower overall profits in the coming years. This is according to an analysis made by Gary Schnitkey, an economist from the University of Illinois. He used 2013 corn prices of $5.70 and soybean prices of $12.80. He said that operator and farmland returns for central Illinois in 2013 are $643 per acre for corn following soybeans but only $571 for corn following corn because of a yield drag. Soybean returns are $446 per... 
 

Profit Down at Hewlett Packard but Stock Increases

The quarterly revenue and profit at Hewlett-Packard continued its familiar trajectory downward on Thursday, but the earnings report sent the company stock in the opposite direction: up. The net income for the tech company based in Palo Alto, California declined by 16%, as revenue was down 6% during its fiscal first quarter from the same period one year ago. However, the results did not turn out as bad as had been forecasted by HP earlier and gave a glimmer of hope to company investors that the company were starting to turn the corner. HP did not... 
 

Governments and Businesses in Middle East Invest Big in Sponsorships

Companies and countries throughout the Gulf region are pumping millions of dollars into different sports partnerships in order to attract new business and build more recognition. Emirates Airlines, one of the biggest spenders, recently signed a $180 million deal with the operators of Formula One. That is just one in a long series of sports sponsorships that companies in the region have signed to increase brand recognition. The Dubai-based air carrier, as a global partner for Formula One, will have its brand present at 15 races during the Formula... 
 

US Airways and American Airlines Merger to Impact Local Airports in US

The impending merger of two large airlines will play a vital role in the futures of all local airports across the nation. US Airways and American Airlines have recently announced their $11 billion merger. Once it is completed, the resulting company will be the world’s largest airline. People are expecting the merger to be advantageous for all travelers. Observers of the transportation sector say that the merger will generate more flights and opportunities for customers of both airlines. The two companies will complement each other’s services.... 
 

Office Depot negotiating with OfficeMax over Merger

Office Depot, Inc is in merger talks with OfficeMax said people who are close to the situation. The two paper, pen and other office accessories retailers are trying to find a way to fend off the tough competition that rivals such as Staples and Amazon.com have produced over recent years. The deal being negotiated is said to be just a straight stock for stock merger, but the terms are unknown as to what percentage of the new group will be held by Office Depot and OfficeMax. Those who are aware of the deal said it was not completed and there always... 
 

European Shares Lower thanks to Carlsberg

Denmark’s Carlsberg A/S, the owner of the biggest brewer in Russia scrapped its goal of medium term profitability amid higher costs for brewing beer and expenses for changes made in logistics and product buying. The target set in February of 2010 to increase the operating profit by 20% of sales over a three to five year period has proved to be difficult, the company, based in Copenhagen said on Monday. The company statement added that a number of events, both within company control and beyond it, have and will impact margins on a continuing basis. In... 
 

Toyota Settles with 29 States regarding Recall Issues

Toyota Motors Corp. reached an agreement with attorney generals from 29 states and an US territory. This was the latest move by the automaker to accelerate things regarding the recall issues. The deal was said to be worth $29 million. The deal was announced Thursday and was approved by Toyota’s board in Japan in December. It came less than two months after Toyota reached a record setting $1.1 billion settlement of class-action claims that the automaker’s actions connected to the acceleration problem that had damaged the value of consumers’... 
 

Heinz Acquisition Being Investigated for Stock Trades

Regulators from the U.S. Securities and Exchange Commission have started a formal inquiry into unusual stock trades they said took place prior to the deal to purchase the food company H.J. Heinz. Those trades have raised some questions about whether illegal activity took place surrounding one of the largest acquisition deals in recent memory. SEC regulators started their inquiry over possible insider trading on Thursday as investment firm 3G Capital and Berkshire Hathaway came to an agreement to purchase the food company for the price of $72.50... 
 

Goodyear Profits Higher than Estimates

Goodyear Tire & Rubber Company reported profit of $97 million or 39 cents a share in the fourth quarter of 2012. It was above the $6 million or 3 cents per share in the same period of 2011. The company beat the Zacks Consensus Estimate of 21 cents a share. If special items were included, Goodyear had a breakeven fourth quarter compared to the profit of $18 million or 7 cents a share in the same quarter of 2011. Revenues of Goodyear dropped 11.2 percent to $5 billion due to the $338 million in lower tire unit volumes, $221 million in lower sales... 
 

MGM Asks New Jersey for Reinstatement of Casino License

MGM Resorts International agreed to leave New Jersey in 2010. The company petitioned state’s regulators to re-establish its casino license. The company agreed to get out of the state in March 2010 when it was questioned about its Macau business partner Pansy Ho. The casino operator has a 51 percent stake in MGM Macau’s parent company MGM China Holdings Ltd. It decreased Ho’s stake to 27 percent according to a filing dated February 8. New Jersey’s Division of Gaming Enforcement had recommended that Ho should be deemed unsuitable to have... 
 

Blackberry Dealt Blow by Home Depot

Canadian smartphone maker Blackberry, which is currently changing its legal name from Research In Motion, received bad news from Home Depot on Monday. The huge U.S. home improvement retailer announced it would replace Blackberry smartphones it has been providing its executives and other staff with Apple’s latest iPhone. The announcement was the latest bad news for Blackberry in its attempt to return from a very difficult 2012. It is important for the company to retain as many of the large accounts as it can with corporate clients and different... 
 

Markets in Europe Await Finance Ministers Meeting

The euro was able to move off its two week lows on Monday, while equities in Europe and crude oil remained at their monthly highs. Developments politically in parts of Europe have investors worried and could offset signs of increased world trade. Nevertheless, there are no major drivers at present in the economy and trading remained light on Monday thanks to most of the financial markets in Asia being shut down for the Lunar New Year. Currently, the biggest interest is on the meeting later this week of finance ministers from the euro zone. For many... 
 
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