Oh anti-trust, anti-trust, wherefore art thou anti-trust? Don’t get me wrong, I love T as an investment, we just made a play on them last week with their big, fat, 6% dividend. Now they are using debt to finance a $39Bn purchase of DT’s T-Mobile division as the German-based company is sick and tired of getting paid in worthless dollars, which add nothing to their Euro-based earnings. Although one may think regulators would actually wake up and say "Huh?" to this deal – AT&T was confident enough to put up a $3Bn breakup fee and you don’t do something like that unless you’ve already spent $300M buying all the votes you need ahead of time.
"AT&T anticipates regulators will require it to divest wireless spectrum and subscribers as a condition for approval," said a person with knowledge of the situation. These things are all worked out long before they are announced but let’s hear it from the little guy anyway: "The combination of the second-largest wireless carrier with the fourth-largest is ‘unthinkable’,” Gigi Sohn, president of Public Knowledge, a Washington-based advocacy group, said in a statement. “We know the results of arrangements like this — higher prices, fewer choices, less innovation.” Isn’t he cute?
In addition to surpassing Verizon Wireless, AT&T could leave Sprint Nextel Corp. (S) as a far weaker No. 3 player in the industry, said Rebecca Arbogast, an analyst for Stifel Nicolaus & Co. in Washington. “AT&T was broken up and now it’s back with a vengeance,” said Bert Foer, president of the American Antitrust Institute, a Washington-based non-profit researcher that challenges what it sees as abuses of concentrated economic power. “We have to decide if we’re happy with the idea of going back to monopolistic treatment of the telecom industry. AT&T has come back to monopolistic power just like the Terminator.”
Is T calling a bottom to the dollar? Probably. You don’t spend $39Bn to buy a 40% market share in a country with declining revenues. T is also calling a bottom to lending rates and probably making a bet on inflation as well – all in all, pretty much exactly what we’re playing the market for so, from a T shareholder perspective – I love this acquisition. Nothing makes money like a monopoly (just ask Carlos Slim) and, as Steve Colbert illustrates above, AT&T has…
The Telegraph reported over the weekend that Gaddafi apparently made good on his threats to trigger a civil war, using irregular forces largely composed of hired mercenaries to launch a counterattack against protesters. “Anywhere we go there is danger,” said one woman, a 28-year-old mother of four who asked not to be named. “All we want is food and fresh water for our children but it is impossible to find. Security is the only concern of the authorities.”
An accurate report of the death toll is impossible to obtain at this time, but on Wednesday, Italy’s Foreign Minister, Franco Frattini said, “We believe that the estimates of about 1,000 are credible.” The situation in Libya has deteriorated since then. Multiple stories coming in from all over the country have cited dozens to hundreds of casualties in each city. It appears that Libya has slipped into the abyss of complete social breakdown and civil war.
A frame grab from Libyan state television broadcast on February 24, 2011 shows burnt cars in Tripoli, Libya.
AFP / Getty Images
When Rahma started her conversation over the phone, she said the shooting outside her home, in the streets of Tripoli, had calmed. It had been a terrible Friday. "After prayers, around 6,000 people gathered to denounce the regime, and soon after that, soldiers opened fire and killed two people," said the 21-year old woman, an employee for an oil company. But, 20 minutes after we began talking, she suddenly says, "I’m hearing shots again — a lot of them now. It’s getting worse" The terrible day was not yet over.
As more and more cities joined the ranks of "Free Libya," Tripoli is increasingly the theater for what looks to be Muammar Gaddafi’s last stand. Almost on cue, anti-regime forces, reportedly bearing arms taken from arsenals and swelled by the ranks of defecting soldiers, are bringing the battle to the capital from the so-called liberated zones. And for their part, thousands of residents of the capital took to the streets today, following Friday prayers, in a procession that kept on growing in size as it headed for Tripoli’s central plaza, Green Square. The regime’s troops responded by opening fire.
Rahma tells TIME she was out among the crowds earlier on Friday, but had been inside at home after hearing from family members elsewhere in the city that troops had shot unarmed marchers. At mid-afternoon, people she knew at the march told her that their numbers had grown to around 10,000 people. "The nearer to Green Square they get, the more people come out to join them," she says. "The soldiers are shooting more to reverse that, but it isn’t working. The soldiers may shoot people, but more citizens will come to replace them."
Like most other Libyans, Rahma has relied on cell phone communication to get updates on events, though not all information is easy to vet. "It’s very difficult to confirm everything you hear, and there are…
The one country landlocked between Tunisia and Egypt has so far been oddly silent. Not so much any more. Al Jazeera reports that the Libyan government has imposed a state of emergency for "fear of demonstrations and rallies" comparable to those in Tunisia and Egypt. And ranked 17 in the world for oil production (and 9th in proven reserves), this is one that crude HFT algos may want to keep an eye on.
Libyan sources familiar with the island revealed that a state of alert security prevail in the east of the Libyan cities, confirmed that elements of the police and support central and distributed to all government buildings.
The sources said that the Libyan government imposed a state of emergency and security alert since the outbreak of the revolution, Tunisia, for fear of demonstrations and rallies similar in Libyan cities.
The sources of the existence of orders to stop any gathering, whether in government or outside.
Under these instructions – Sources confirm – The Libyan government later abolished the league matches of Libyan Football Association which was to be organized during the month.
In conjunction with the ongoing events in neighboring Egypt, the forces imposed from the central support and the police since yesterday evening checkpoints in several major regions in both the white and Benghazi and Derna and Tobruk.
These enhancements come at a time when Libya is following with interest the Libyan street events taking place in Egypt over the satellite news channels deployed in all the cafes and shops in cities of Libya.
He said the Libyans before the popular revolution that swept cities in Tunisia and has succeeded in toppling President Zine El Abidine Ben Ali, after 23 years of rule.
It is feared the Libyan regime of infection along the Tunisian and Egyptian into Libya, especially in light of similar conditions and problems such as poor living conditions and the absence of freedoms
In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.
Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...
“I am sure the euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.”
– Romano Prodi, EU Commission president, December 2001
Prodi and the other leaders who forged the euro knew what they were doing. They knew a crisis would develop, as Milton Friedman and many others had predicted. It is not conceivable that these very astute men didn’t realize that creating a monetary union without a fiscal union would bring about an existential crisis. They accepted that eventuality as the price of European unity. But now the payment is coming due, and it is far large...
1) Below is a spot-on cover story in this weekend’s Barron’s about how attractive Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) is today:
“In effect, the world is Berkshire’s oyster,” Buffett wrote, noting that it “is perfectly positioned to allocate capital rationally and at minimal cost.” Jain’s catastrophe-reinsurance operation, for instance, is doing less business now because alternative sources of coverage, n...
Sellers in the S&P made it five days of downside in a row. On this last day it closed near the day's lows, but also on its 200-day MA. If there was reason for a bounce, then tomorrow could be the day. Technicals are all net negative.
The Dow took the selling harder. It undercut the July swing low having earlier lost its 200-day MA. Next up is the February swing low.
Small Caps finished at its 200-day MA, after it lost trendline support on Friday...
A reader recently asked the question of why we so often don't trade our plans after we've gone to the trouble of planning our trades. The usual answer to this question is that emotion gets in the way, which naturally leads to strategies for yet more planning, "discipline", and the dampening of emotion. As an interesting article on motor sport makes clear, however, it may well be that we lose our plans when we lose our concentration. Instead of working to control emotions, it makes sense to cultivate ex...
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Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).
Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself.
Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene
The replay is now available on BNN's website. For the three part series, click on the links below.
Part 1 is here (discussing the macro outlook for the markets)
Part 2 is here. (discussing our main trading strategies)
Part 3 is here. (reviewing our pick of th...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at firstname.lastname@example.org with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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