Oil, stocks go their separate ways

NEW YORK - Investors have wrung their hands over the last several weeks over the effect of lower oil prices on the broader S&P 500, but the relationship between the two is actually starting to break down.

Crude prices had dropped more than 10 percent in the trading week ended Dec. 12. That was largely responsible for a 3.5 percent drop in the S&P 500, as investors fled stocks over concerns about energy-sector bonds, corporate earnings, and expectations for world economic demand.

That seemed to change Thursday. The S&P 500 surged while oil fell, a potential change in sentiment among investors looking to focus on sectors that may benefit from an accelerating U.S. economy.

"The proof is that oil turned down and the market said, 'Oh, that was yesterday's news, today we're moving ahead,'" said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

Bank of America Merrill Lynch credit strategist Hans Mikkelsen credited the decoupling partly to Fed Chair Janet Yellen's Wednesday news conference.

"She explained how declining oil prices are expected to be a net positive for the U.S. economy. Furthermore, she went out of her way to dismiss any downward pressure on inflation as transitory."

Investors may have already priced in the effect of cheaper oil on energy-sector earnings and are now starting to weigh the positives for other sectors.

In its 2015 global outlook, fund manager Pimco said the fall in energy costs, because it is largely supply-driven, should ultimately help growth in major economies, including the United States, Japan, and the euro zone.

Fourth-quarter energy-sector earnings are expected to decline 19.2 percent from a year ago; on October 1, growth of 6.6 percent was expected.

"You will see some pain in the short term because of fourth quarter earnings," said James Liu, global market strategist at JPMorgan Funds in Chicago. "So the broad S&P 500 will take a hit based on that, but over the next several quarters it is clearly going to be a good thing."

As recently as Tuesday, the 10-day correlation between the S&P 500 and Brent crude stood at 0.97, meaning each moved in almost perfect sync with the other. The correlation has been breaking down and last stood at 0.42, with Brent stumbling 3.1 percent, while the S&P 500 surged 2.4 percent, on Thursday.

According to data from S&P, energy has fallen to a market share representation of 8.31 percent, from 9.7 percent at the end of the third quarter, as names such as Denbury Resources, Nabors Industries and Halliburton have each tumbled more than 35 percent.

With investors hoping oil prices have at least stabilized as Brent hovers around the $60 mark, selling pressure could resume on equities if the downward march for oil begins again, weighing on the broader S&P index and tightening the correlation.

source: interaksyon.com

Swiss central bank introduces negative interest rate

Zurich, Switzerland - Switzerland's central bank on Thursday announced it was introducing negative interest rates, in a bid to stop the Swiss franc -- a safe haven currency -- from gaining further value.

The Swiss National Bank is imposing a rate of -0.25 percent on certain bank deposits, with the aim of pushing the target range of a benchmark interest rate into negative territory.

The rate on so-called sight deposits, funds which can be accessed immediately, will come into force on January 22 and only apply to balances above a certain threshold.

The SNB said the aim was to take the three-month Libor rate, which Switzerland uses to determine interest rates on mortgages and savings accounts, into negative territory.

The target range for Libor -- officially the franc's three-month London interbank offered rate -- is now between -0.75 percent and 0.25 percent, down from between 0.0 and 0.25 percent.

Analysts have been expecting the bank to push rates into negative territory, which is designed to make it less attractive to hold Swiss franc investments.

The SNB reiterated its "utmost determination" to stop the Swiss currency gaining value and to keep to an exchange-rate floor of 1.20 francs to the euro, in a bid to protect the country's vital export industry.

"Over the past few days, a number of factors have prompted increased demand for safe investments," it said.

"The introduction of negative interest rates makes it less attractive to hold Swiss franc investments, and thereby supports the minimum exchange rate.

"The SNB is prepared to purchase foreign currency in unlimited quantities and to take further measures, if required."

source: interaksyon.com

Pope leads global praise for 'historic' thawing of US-Cuba ties

PARIS, France -- Pope Francis led a chorus of global plaudits for Wednesday's breakthrough in US-Cuban relations, hailed as "historic" in Europe and South America and prompting celebrations on the streets of Havana.

In a personal coup for the pope, it emerged that the Vatican had played a central role in bringing together the global capitalist superpower and the tiny communist island.

The Argentinian pontiff sent "warm congratulations" to the former arch-foes for overcoming "the difficulties which have marked their recent history."

The Vatican said the pope had appealed to US President Barack Obama and his Cuban counterpart Raul Castro to end the standoff, offering negotiators his offices in October, paving the way for "solutions acceptable to both parties."

Canadian Prime Minister Stephen Harper noted that his country -- which never broke off ties with Cuba -- had also played its part by hosting the first secret talks in 2013, and welcomed the "overdue development."

The European Union, which is itself moving to normalise ties with Cuba, hailed the announcement as a "historical turning point."

"Today another Wall has started to fall," said EU foreign affairs head Federica Mogherini, adding that the 28-member bloc hoped ultimately to be able to "expand relations with all parts of Cuban society."

In South America, the detente elicited a euphoric response from leaders of the five-nation Mercosur bloc meeting in Argentina, who broke into applause at the news.

Best birthday present

"We're living a historic day," said Venezuelan President Nicolas Maduro, leader of Cuba's closest ally and one of its biggest benefactors, at the Argentina summit.

Maduro, whose forerunner Hugo Chavez was a close confidant of Fidel Castro, immediately claimed the thaw as "a moral victory" and "a victory for Fidel."

Praising Pope Francis, who turned 78 on Wednesday, Maduro noted: "It was with his help, and it's the best birthday present."

In Bogota, Colombian President Juan Manuel Santos saluted "the audacity and courage" of the US and Cuban leaders in helping further "the dream of a continent where there will be absolute peace between nations and within them."

And Chile's Foreign Minister Heraldo Munoz spoke for those in Latin America who were frustrated by the diplomatic divide, declaring: "This is the beginning of the end of the Cold War in the Americas."

In Europe, Spain's Foreign Minister Jose Manuel Garcia-Margallo said the move was "of great significance" and seized the opportunity to urge Cuba to improve its rights record.

"This future can only be built on the basis of respect for democracy and human rights," he told reporters in Madrid.

German Foreign Affairs Minister Frank-Walter Steinmeier called the breakthrough "very good news in these times rich with conflict."

Celebrations and anger

In Havana's historic center, overjoyed Cubans took to the streets to celebrate the news, voicing hopes that the breakthrough would lead to an economic revival.

"I have goosebumps all over," said 52-year-old cafeteria worker Ernesto Perez. "It's very important news that will change all our lives."

But among Cubans in Miami's Little Havana, the reaction was one of anger and dismay.

Dozens of people gathered outside Cafe Versailles, a Little Havana landmark, to protest the rapprochement.

"It is a betrayal. The talks are only going to benefit Cuba," said Carlos Munoz Fontanil in Calle Ocho, the heart of an exile community that has long pined for the fall of the Castro regime in Havana.

Some Republican and Democratic lawmakers in Washington took a similar view and warned Congress would block efforts to lift the trade embargo.

"The White House has conceded everything and gained little," said Republican Senator Marco Rubio, blasting the deal as "inexplicable."

source: interaksyon.com

Ringo Starr, Lou Reed among 2015 Rock and Roll Hall of Fame class

NEW YORK | Former Beatles drummer Ringo Starr, the late rocker Lou Reed, punk group Green Day and singer Bill Withers are among the 2015 inductees named on Tuesday to the Rock and Roll Hall of Fame.

The Paul Butterfield Blues Band, rockers Joan Jett & The Blackhearts, rhythm and blues band the “5″ Royales, the late blues guitarist Stevie Ray Vaughan and the band Double Trouble will also be inducted into the Hall of Fame at a ceremony in Cleveland on April 18.

“These inductees epitomize rock and roll’s impact over the past 50 years and continuing through today,” Joel Peresman, the president of the Rock and Roll Hall of Fame Foundation, said in a statement.

He added that this year will mark 30 years of Rock and Roll Hall of Fame inductions.

Starr was selected in the music excellence category. He was inducted as a member of The Beatles in 1988. His bandmates have since entered the Hall of Fame as solo artists: John Lennon in 1994, Paul McCartney in 1999 and George Harrison in 2004.

Reed, whose work with The Velvet Underground made them one of the most influential groups in rock; Green Day and “Ain’t No Sunshine” singer Withers were selected in the performer category, along with the Paul Butterfield Blues Band.

Joan Jett & The Blackhearts, whose biggest hit “I Love Rock ‘n Roll” became a rock classic, were cited for their fresh sound. The “5″ Royales were credited for creating some of rock’s first standards while performing from 1945 to 1965.

More than 700 artists, music industry professionals and historians help to decide who is inducted. The public also cast their votes in a “fans ballot.”

Artists are eligible 25 years after the release of their first record for induction into the Hall of Fame, which was established in 1983.

source: interaksyon.com

iRipple sizzles with sale of assets to third party

Shares in software solutions provider iRipple Inc bucked the selloff in the broader market to hit a new one-year high on Tuesday after its board cleared the sale of all its assets and liabilities to a third party.

In a disclosure to the Philippine Stock Exchange, iRipple said the terms and conditions as well as the manner of sale have yet to be finalized.

"The company shall sell substantially all its assets to a third party in preparation for a contemplated change in primary purpose of the company (i.e. holdings corporation)," iRipple said.

Its shares rose 5.19 percent to close at P73.10 each, surpassing the stock's 52-week high of P73 and bucking the benchmark index's nearly 3 percent drop.

"The new company will build the future of retail technology for the Asian market," iRipple chief finance officer Karlo Tablizo said in a text message, but stopped short of identifying possible backdoor listing prospects.

iRipple operates, develops, manages and provides software solution projects and related businesses as well as trades computer hardware and software products. It started commercial operations in January 2002.

The company developed BarterMerchandise Management Solution (MMS), a software solution designed to support the entire merchandising operations of businesses engaged in the buying and selling of goods.

At end-2013, iRipple deployed Barter in more than 1,100 branches nationwide, while the Barter point-of-sales (POS) Solution has been installed in approximately 5,000 units.

iRipple is an authorized reseller of IBM and HP servers and POS equipment, Epson printers, and Symbol-Motorola scanners. Under the re-seller agreement, the listed company is charged at dealer prices while supplying IBM and HP POS equipment, Epson printers and Symbol-Motorola scanners to their Barter clients at a margin.

source: interaksyon.com

Apple cleared in iPod antitrust suit

SAN FRANCISCO — A US jury on Tuesday cleared Apple of abusing its dominant market position in an antitrust case over online music for the iPod.

The class-action antitrust case in California federal court featured dramatic videotaped testimony recorded by Apple co-founder Steve Jobs before he died in 2011.

The $350-million lawsuit accused the tech giant of illegally forcing iPod users to purchase their music on its iTunes service.

The suit said iPod buyers between 2006 and 2009 were blocked from buying music from other vendors, advancing Apple’s dominant position on music downloads.

But the jury ruled otherwise.

“We thank the jury for their service and we applaud their verdict,” Apple said in a statement.

“We created iPod and iTunes to give our customers the world’s best way to listen to music. Every time we’ve updated those products — and every Apple product over the years — we’ve done it to make the user experience even better.”

Jobs’ testimony from a few months before his death in October 2011 was played at the hearing Friday.

In excerpts published by online news site “The Verge,” he said that Apple was “very concerned” about retaliatory measures that could be taken by record companies if songs purchased in iTunes and downloaded to an iPod were then copied onto somebody else’s computer.

“We went to great pains to make sure that people couldn’t hack into our digital rights management system because if they could, we would get nasty emails from the labels threatening us that they were going to yank the license,” Jobs said.

He argued that “lots of hackers” were trying to break into the system, and as a result, Apple had to be constantly “revving the iTunes and iPod software, closing any holes that might be in it, or any problems it might have.”

If these changes meant that competitors became locked out, then they were only “collateral damage,” he said.

Plaintiffs in the class-action suit argued that the repeat changes prevented other online music stores — and potentially less expensive ones at that — from adapting their own systems fast enough for their music to be used on the iPod.

This, they said, meant iPod owners had to make purchases on iTunes.

Apple has remained a powerful player in online music, but in 2009 dropped its “digital rights management” that limited how users could copy or transfer songs.

source: interaksyon.com

Manager of Sydney Cafe dies as hero in hostage siege

SYDNEY -- The manager of the Sydney cafe who was fatally shot in the siege was being praised as a hero on Tuesday for allowing others trapped in the cafe to escape.

Three people were killed, including the hostage taker, in the 17-hour siege which involved a lone gunman and 17 hostages and began on Monday morning.

Tori Johnson, 34, was wrestling a gun from hostage taker Man Haron Monis when he was killed, according to the Australian Broadcasting Commission (ABC).

According to reports from the hostages, it is understood the cafe manager decided to take action when Monis started to fall asleep at 2 a.m. on Tuesday after the siege had been ongoing for 17 hours.

Johnson lunged at the gunman's weapon, enabling others to flee.

The second hostage killed has been identified as mother-of- three Katrina Dawson, 38. Dawson was killed trying to defend her pregnant friend, the Australian Associated Press reports.

Media refused to be used

Various media have reported that Monis forced the hostages to call them to present his demands. All the media did not cooperate and did not relay these messages.

Before the police raided the cafe at around 2 a.m., a group of hostages ran out of the building. At that point police stormed the cafe using stun grenades and firing rifles.

The 50-year-old Monis, an Iranian refugee and self-styled sheikh on bail for an accessory to murder charge, was pronounced dead at hospital.

Four hostages were injured including two women, who have been taken to a hospital with non-life threatening injuries, another woman who suffered a gunshot wound to her shoulder and a police officer who was treated for a gunshot wound to the face.

Addressing the media on Tuesday morning, New South Wales (NSW) Commissioner Andrew Scipione said police were still trying to find out the exact details of siege. "We need to actually find out what's happened here and what's happened inside that cafe," he said.

Tribute to the hostages

NSW Premier Mike Baird has also addressed media, paying tribute to the families of the deceased and hostages, and rallying the people of NSW to "come together like never before."

Australian Prime Minister Tony Abbott has released a statement this morning following briefings with the NSW premier and police commissioner.

"Our thoughts and prayers are with the families of the two deceased hostages, the wounded, and the other hostages," he said.

"I commend the courage and the professionalism of the New South Wales Police and other emergency services."

Abbott will travel to Sydney on Tuesday to be further briefed by NSW police and other security agencies.

The authorities have commenced an extensive investigation and cleared for risk of explosives.

Throughout Tuesday morning, the public have been laying flowers near the cafe in Martin Place.

Police have been reluctant to reveal details of what prompted them to storm the building, but it has been reported hostages took the opportunity to escape as their captor began to doze off.

Scipione said police had no choice but to enter the building, after hearing gunshots and feared hostages had been hit.

"They made the call because they believed at that time if they didn't enter it would have been many more lives lost," Scipione said.

Monis was also charged this year with indecent and sexual assault of women in 2002. He was hit with an additional 40 charges in October.

Monis, who was originally from Iran and lived in southwest Sydney, had previously sent offensive letters to the families of dead Australian soldiers, calling them "murderers," the Daily Telegraph said.

source: interaksyon.com

Dell launches new PC monitors

MANILA, Philippines — Dell has launched its new line-up of computer monitors during the company’s year-end briefing in Taguig last Friday.

The product line includes the flagship UP2715K, a 5k monitor with almost twice the resolution of a 4k monitor, the U3415W, Dell’s first type of 34-inch curved screen monitor, the Ultra HD 4k monitor P2715Q and the UltraSharp monitor U2515H.

“We are excited to announce Dell’s new monitor line-up in sizes and price points that will be compelling to customers seeking for higher resolutions,” Jasmon Ching, Dell South Asia brand marketing manager, said. “Today’s announcement reinforces how Dell has led in product innovation by making the latest monitor technologies available to everyone, regardless of their usage and budget.”

The premium product UP 2715K goes for $2,499 (about P111,492) and is designed primarily for color-based and high-resolution imaging industries as well as game and software developers. The product is mainly a 27-inch 16:9 ultra-HD 5k screen panel with a resolution of 5120×2880 (over 14 million pixels), or seven times better than full-HD monitors. According to Dell, the UP2715K can display 1.07 billion colors and has an 86 percent decrease of harmful reflection compared to other products for a more accurate display performance.

The curved display U3415W, on the other hand, retails for $1,199 (about P53,493) and has a sharpness of 3440×1440 resolution on 21:9 screen.

“The curved display and wide field of view work together to give gamers a competitive edge, requiring less eye movement when compared to a flat panel display, enabling players to take advantage of their peripheral vision when the competition heats up,” the company said in a press statement.

Dell also unveiled the P2715Q Ultra HD ($699 or P31,168), which has a 3840×2160 resolution with more than 8 million pixels, and the U2515H ($479 or about P21,375), which has a 2560×1440 QHD resolution.

source: interaksyon.com

Oil slump leads Wall Street to worst week in 2-1/2 years

NEW YORK - U.S. stocks fell sharply on Friday, leaving the benchmark S&P 500 with its worst weekly performance since May 2012, as investors pulled back from the markets in response to oil's free-fall and more weak data out of China.

Oil's declines have underscored concerns about global demand, and with the S&P 500 having hit a record high only last week, investors were loath to fight the downward pressure on stocks, which accelerated in the final minutes of trading. The S&P dropped 3.5 percent on the week after seven straight weeks of gains.

The S&P energy sector .SPNY was down 2.2 percent on the day. It is down 16.5 percent this year, the worst performing of 10 S&P sectors. Dow components Exxon Mobil and Chevron Corp both hit 52-week lows as U.S. crude oil fell below $58 a barrel, hitting five-year lows, on expectations of reduced worldwide energy demand.

"Certainly as midday came the market did not stabilize at all, so sellers knew that," said Kenny Polcari, director of the NYSE floor division at O’Neil Securities in New York. "Energy is at the top of the list in terms of the names getting crushed."

The Dow Jones industrial average fell 315.51 points, or 1.79 percent, to 17,280.83, the S&P 500 lost 33 points, or 1.62 percent, to 2,002.33 and the Nasdaq Composite dropped 54.57 points, or 1.16 percent, to 4,653.60.

Disappointing data that suggested China's economy softened in November pushed the materials sector  down 2.9 percent, making it the worst-performing S&P sector on the day.

The drop in oil and weakness in China overshadowed strong U.S. consumer sentiment, which hit an eight-year high.

Some investors hope declining gas prices will boost consumer spending enough to offset the energy sector's woes.

However, there is concern that rising volatility in the energy market will migrate to equities as investors worry about slack demand worldwide. The CBOE Volatility Index rose 5 percent to 21.08 on Friday as investors paid up to hedge against losses.

Polcari, however, noted that the S&P 500's declines came to within a whisper of the 50-day moving average at 2,000, where he expects to see buyers emerge next week.

Adobe Systems rose 9 percent to $76.02, making it the biggest gainer on the S&P 500 after it announced plans to buy stock photography company Fotolia, along with a stronger quarterly report.

Declining issues outnumbered advancing ones on the NYSE by 2,468 to 647, for a 3.81-to-1 ratio on the downside; on the Nasdaq, 1,949 issues fell and 790 advanced for a 2.47-to-1 ratio favoring decliners.

The broad S&P 500 index posted 15 new 52-week highs and 35 new lows; the Nasdaq Composite recorded 52 new highs and 160 new lows.

About 7.6 billion shares were traded on U.S. exchanges on Friday, compared to the 6.9 billion daily average so far this month, according to BATS Global Markets data.

source: interaksyon.com

Floyd Mayweather says he’s ready to fight Manny Pacquiao: ‘Let’s do it’

Floyd Mayweather said on Friday that he’s ready for the long-awaited megafight with Filipino boxing icon Manny Pacquiao.

In an interview on the Showtime network during a fight card his company was promoting, Mayweather said he was willing to make the fight happen, even suggesting a May 2 date for the bout.

“We are ready. Let’s make it happen. May 2. Mayweather versus Manny Pacquiao. Let’s do it,” Mayweather said in the interview.

There has been clamor for the megafight since 2009, but concerns about drug testing and money matters have made the fight seem unlikely to occur.

The undefeated American boxer also said that it was not him that was keeping the much-anticipated fight from happening and pointed at Top Rank promoter Bob Arum instead.

Arum, though, has stated that Mayweather was “smart” and has avoided the fight because Pacquiao poses the biggest threat to his pristine record.

The fight is expected to be the richest fight in boxing history, though Mayweather is expected to demand a much larger purse than Pacquiao in the bout.

Pacquiao has been calling Mayweather out recently, saying he was ready for the fight after his recent win over Chris Algieri and trading barbs with his rival on Instagram and in a Foot Locker commercial.

source: interaksyon.com