From Obama, a low-tech list
By Larry Rulison, Times Union, Albany, N.Y.
May 9–ALBANY — President Barack Obama spoke Tuesday from inside a next-generation computer chip factory during his trip to Albany.
But instead of focusing on high-tech or advanced manufacturing, the President used the setting to urge Congress to enact a short list of easy-to-swallow legislative initiatives he believes are crucial to getting the American economy back on track.
The ideas ranged from creating a Veterans Job Corps to cutting red tape for people hoping to refinance their mortgages.
Obama called the initiatives a “to-do list” he says Congress can easily enact without a crippling partisan debate.
“They’re simple ideas,” Obama said. “They’re the kinds of things that, in the past, have been supported by Democrats and Republicans. These are traditionally ideas that have had bipartisan support. They won’t have as big of an impact as rebuilding our infrastructure or helping states hire back teachers, but together, all of these ideas will do two things: They’ll grow the economy faster and they’ll create more jobs.”
Obama spoke at the University at Albany College of Nanoscale Science and Engineering inside what will one day be a 50,000-square-foot clean room dedicated to the next generation of computer chip manufacturing.
The still unfinished lab, which was outfitted over the weekend for the presidential visit, will be the centerpiece of the college’s new $365 million NanoFab X building that will be home to a global computer chip consortium announced by Gov. Andrew Cuomo last fall.
The consortium has committed to spending $4.8 billion over five years to move to using larger silicon wafers upon which their devices are made while shrinking the transistors on the chips to be nearly as small as atoms.
If successful, the cost savings and technological advances made here could fuel a high-tech manufacturing economy for decades.
One of Obama’s proposals that would be most applicable to efforts to grow local manufacturing was his idea to provide incentives to companies to bring jobs back to U.S. soil from places such as China.
The President suggested a 20 percent tax credit to companies moving their operations back to the United States. That would be paid for by eliminating incentives in the tax code that allow companies to benefit from moving jobs abroad.
Read More»OfficeMax, Wendy’s, Fossil are market movers
NEW YORK – Stocks that moved substantially or traded heavily Tuesday on the New York Stock Exchange and Nasdaq Stock Market:
NYSE
OfficeMax Inc., up 49 cents at $4.89
Thanks to its cost-cutting, the office supply retailer posted first-quarter results that beat Wall Street’s expectations.
Tenet Healthcare Corp., up 6 cents at $5.10
The hospital operator said its first-quarter earnings fell 20.5 percent as its expenses and bad debt rose.
Nasdaq
The Wendy’s Co., down 20 cents at $4.67
The fast-food company reported a first-quarter profit that missed Wall Street expectations and it cut its forecast for the year.
Fossil Inc., down $47.25 at $78.52
The watch company’s 2012 profit forecast disappointed investors and it said sales in Europe fell as the economy weakened.
Wynn Resorts Ltd., down $5.96 at $119.23
The casino operator said its first-quarter profit fell 19 percent on a decline in business at its Las Vegas operations.
Electronic Arts Inc., down 65 cents at $14.48
The maker of video and computer games such as The Sims 3 and Madden NFL forecast lower-than-expected revenue for the coming year.
FreightCar America Inc., up 50 cents at $21.26
The freight car maker returned to a profit in its first quarter as it delivered more railcars and cut its manufacturing costs.
Dendreon Corp., down $2.94 at $8.75
The drugmaker reported a loss and modest growth for its only marketed product, the prostate cancer treatment Provenge.
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Read More»Obama to visit upstate N.Y. today
By Joe Mahoney, The Daily Star, Oneonta, N.Y.
May 8–Amid new polls showing the 2012 race for the White House is shaping up as a tight one, President Barack Obama is scheduled to stop today in Albany, where he is expected to tout the ability of private-public partnerships in technology to generate sorely needed jobs.
The visit, coming three days after Obama formally kicked off his re-election campaign with large rallies in Ohio and Virginia, is designed to showcase Obama as a supporter of cutting-edge technologies that have the potential to invigorate the economy and foster employment opportunities, observers said.
“He is playing to the innovations that will lead to jobs, and jobs are not that plentiful around the country right now,” said Alan Chartock, a political commentator and president of WAMC public radio. “By coming to Albany to embrace nanotechnology, which has been a great success, he is showing he is playing to whatever strengths there are.”
Obama is slated to be ferried via presidential motorcade from Albany International Airport to the State University at Albany’s College of Nanoscale Science and Engineering at 1:30 p.m., when he will deliver a speech focusing on the economy.
“It’s troublesome for any administration any time the unemployment rate is where it’s at now,” said Otsego County Rep. Rich Murphy, D-town of Oneonta, who is also vice chairman of the county’s Democratic committee. He said one of the challenges for Obama will be to convince voters that his focus on health care reform and domestic energy production will yield benefits for companies that will spark job creation.
“The topic for this election will be jobs and job creation, and if you really want to help the 43 million Americans who lack jobs, we need to do something to help make health care and energy more affordable,” said Murphy.
The visit comes a year after the state invested $400 million into the college in an effort to convince technology companies to expand in the region.
Read More»AME Info, Abu Dhabi, United Arab Emirates, finance and economy briefs
By AME Info, Abu Dhabi, United Arab Emirates
May 7–QATAR TELECOM DIPS SLIGHTLY, TUNISIA SUBSIDIARY SCORES 3G LICENSE: The Qatar Exchange 20 Index declined 0.38 percent to 8,651.76 points. Losses occured across all sectors without any clear direction visible among the segments. Qatar Telecom or Qtel declined by half a percentage point to hit QR137.40. Earlier in the day, Qtel announced that its Tunis-based unit of Qtel, Tunisiana has acquired licences to operate 3G and fixed-line networks in the North African country, Gulf Times has reported. The company will pay $132m for the rights, the Tunisian ministry of information technologies and communications said.
BATELCO SHARES REBOUND FURTHER WHILE MARKET INDEX STAGNATES: The Manama-based Bahrain All-Share Index dipped insignificantly Monday, closing at 1,161.43 points. Gulf Hotels Group lost the most, closing down 9.72 percent at BD0.65. Islamic financial institution Ithmaar Bank posed the largest advance (up nine percent at $0.24). Bahrain Telecom or Batelco added 1.30 percent to reach BD0.468. Batelco reached a 11-month high two weeks ago when it climbed to BD0.486, but retreated thereafter on profit booking. Year-to-date the Bahrain gauge added 1.55 percent.
ABU DHABI EXCHANGE POSTS THE FOURTH CONSECUTIVE DAY LOSS: Contrary to Dubai, the ADX bourse saw no end in sluggish trading Monday, as its main gauge ADXGI ended off 0.30 percent at 2,487.84 points. Sharjah-based Dana Gas dived 2.27 percent to close at Dhs0.43. Etisalat, RAK Properties and RAK Cement closed the day unchanged. Green Crescent Insurance Company gained the most, closing 6.90 percent higher at Dhs0.31. Around 39.9m shares were traded, valued at Dhs68.8m.
Read More»Chicago Tribune Gail MarksJarvis column
By Gail MarksJarvis, Chicago Tribune
April 28–Encouraged by earnings reports, investors have shrugged off European debt worries and lackluster U.S. growth and are positioned to possibly make April the fifth-straight month of gains in the Standard & Poor’s 500 index.
At the market’s close Friday, the S&P 500 was still in negative territory for the month but not by much. The index is down just 0.36 percent and lately the momentum has been for a continued rise in stocks.
Corporate earnings have been flashing green lights for investors reluctant to partake. With 268 of the Standard & Poor’s 500 companies done reporting, 78 percent have reported profits better than anticipated. Although corporate executives have been mentioning pressures from Europe, many have overcome the strains and produced profits exceeding expectations. Starbucks and Procter & Gamble were among those that didn’t do it Friday. But Apple and Amazon dazzled investors, providing results far above expectations.
“Apple is the largest contributor to earnings growth by far for the entire S&P 500,” said John Butters, FactSet earnings analyst. Without Apple, earnings growth for the first-quarter earnings season would be 3.5 percent rather than the 5.9 percent for the index including Apple.
Investors focused Friday on the resilience of U.S. companies as a government report showed slowing growth in the first quarter. The gross domestic product annual growth rate was 2.2 percent rather than the 2.5 percent expected. But investors didn’t find the report as troubling as first met the eye because the slowing was primarily in government spending, while consumer spending was stronger than expected.
Earlier in April analysts speculated that the market might behave this year as it did last year and the year before, losing momentum in the spring and falling sharply as the economy slowed. Yet, JPMorgan strategist Thomas Lee said Friday, “The U.S. economy is on stronger footing today than in 2011.” He pointed to auto sales, a four-week decline in unemployment claims and housing starts that have been propelling a rally in homebuilder stocks.
This week brings important economic data that will test the theory. On Tuesday investors will look for continuing expansion in manufacturing and Friday comes the April employment report. The last consumer confidence survey by the Conference Board found an increasing number of respondents saying jobs “were not plentiful,” although confidence has climbed sharply since last summer.
gmarksjarvis@tribune.com
___
(c)2012 the Chicago Tribune
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Read More»Daily Mail, London, market report column
By Geoff Foster, Daily Mail, London
April 26–A super-confident Ivan Glasenberg, who is the boss and biggest shareholder of controversial commodities giant Glencore International has insisted his pounds sterling 23bn offer for Xstrata is a “fair price.”
Dealers took those comments with a pinch of salt and are still of the opinion that he will have to significantly increase the terms if he wants to create the fourth largest mining group by the end of the third quarter.
Shares of Mick ‘the miner’ Davis’s Xstrata jumped 34p to 1183p as the market noticed that Qatari investors had increased their stake in the group to almost 7pc. They are obviously banking on Glasenberg upping the ante.
Pressure is therefore definitely growing on Glencore (13.45p better at 429.2p), to raise its February offer of 2.8 of its own shares for each one in Xstrata to three of its own for every Xstrata. It has already faced calls from investors including Schroders, Fidelity Worldwide and Standard Life to lift it.
Glencore will have to pay a break fee of pounds sterling 298m (1pc of its own market capitalisation) if it changes its offer or recommendation. Analysts say that reflects the fact that Glencore is the suitor, and needs the deal more, even if it is a “merger of equals.”
Platinum miner Lonmin, in which Xstrata still sits on 24.6pc of the equity, rose 39.5p to 1034p. Punters live in hope that should Xstrata eventually not climb into bed with Glencore, it will launch a fresh bid for Lonmin.
Shrugging off news that first-quarter Gross Domestic Product fell 0.2pc, meaning the UK has fallen into a technical recession, the Footsie traded 36 points higher before drifting to finish 9.4 points up on the day at 5,718.89, while the FTSE 250 added 62.22 points to 11,334.45. Wall Street advanced 89.16 points to 13,090.72, bouyed by much better-than-expected second-quarter profits from Apple.
Sales figures are amazing. The tech giant sold 7.7m iPods, 35.1m iPhones and record 11.8m iPads during the quarter. The App store now offers more than 600,000 apps, including over 200,000 apps specifically for iPad. The 25billionth app was downloaded in March, less than four years after the launch of the App store.
Chip designer ARM, a major customer of Apple, was chased up to 557.3p on the figures before closing 6p dearer at 537.5p.
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