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Intelligent Investor US Edition January 18 2011
Intelligent Investor US Edition January 18 2011
U.S.
The Economic Monitor Series. Free Edition.
Stock recommendations and price targets from top U.S. stocks gained, overcoming weak Citigroup results and
brokerage firms concerns circling Apple after news of Chief Executive Steve
Jobs' medical leave. The DJIA gained 50.55 points, or 0.43
Analysis and views on FCC Approves Comcast- percent, to end at 11,837.93.
NBCU Deal U.S. Treasury prices fell in a market traders said took its
tone in part from hedging operations at the start of a
Economic Indicator Watch heavy week of corporate bond issuance. Benchmark 10-
year notes last traded down 11/32 in price to yield 3.37
Important Events Scheduled on January 19 percent, up from 3.33 percent on Friday.
Economic Events The dollar fell 0.1 percent to 82.62 yen, while sterling hit an
eight-week peak of $1.6060 after higher-than-forecast UK
No economic events scheduled inflation data
FUTURES
LAST CHANGE
http://www.europac.net/special_report/whats_ahead_canadian_energy_trusts?s=ibt1
The Intelligent Investor - U.S.
The Federal Communications Commission (FCC) has approved the joint venture between NBC Universal and Comcast.
The deal will allow General Electric to transfer the rights to NBC Universal's broadcast, satellite, and other radio licenses to Comcast,
the nation's largest cable company. The deal passed by a four-to-one vote.
"After a thorough review, we have adopted strong and fair merger conditions to ensure this transaction
serves the public interest," FCC chairman Julius Genachowski said in a statement.
"The conditions include carefully considered steps to ensure that competition drives innovation in the
emerging online video marketplace. Our approval is also structured to spur broadband adoption among
underserved communities; to increase broadband access to schools and libraries; and to increase news
coverage, children's television, and Spanish-language programming."
On its website, Comcast says the venture will bring together the cable network portfolio with 234 NBC-affiliated stations, 10 owned
and operated stations, various Telemundo Network properties, a movie production studio and theme parks in Orlando and
Hollywood among other things.
The FCC says the Comcast-NBCU joint venture will have to ensure fair competition in the video marketplace. Critics of the deal say it
puts too much power into one company, Comcast, and would allow them to monopolize content and pricing.
"The Comcast-NBCU joint venture opens the door to the cable-ization of the open Internet. The potential for walled gardens, toll
booths, content prioritization, access fees to reach end users, and a stake in the heart of independent content production is now very
real," The only dissenting FCC Commissioner Michael J. Copps said in a statement.
However, the affirming parties have trusted that Comcast-NBCU will live up to the strict regulations the commission imposed on the
deal. Mignon L. Cyburn, who worked on the deal, said she got several commitments from Comcast, including agreeing to anti-
retaliation language.
"Up until now, online video distributors have lived in fear of having Comcast refuse to carry their programming if they offered it
online. But now, if a content provider licenses its programming to an online video distributor, like Netflix, it will be protected from
retaliatory discrimination," Cyburn said.
Other agreements Comcast made were to ensure reasonable access to Comcast-NBCU programming for multichannel distribution,
access to Comcast's distribution systems and protecting localist concerns.
The two companies, Comcast and NBCUniversal, could not be reached for immediate comment.
RBC
Disclaimer: The views and investment tips expressed by investment experts are their own, and not that of IBTimes or its management. We advise users to check with certified experts before
taking any investment decisions.
The Intelligent Investor - U.S.
TOP STORIES
Mortgage Index
Forecast: NA Prior:482.7
Refinancing Index
The Mortgage Banker Association will release Mortgage data at 0700 EST.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 2.2 percent in the week
ended Jan. 7 to its highest level in about a month. It had dropped on the back of refinancing activity as influential U.S. Treasury yields
soared in late 2010.
Fixed 30-year mortgage rates averaged 4.78 percent in the week, down from 4.82 percent the prior week and 4.93 percent before the
Christmas holiday.
The MBA's seasonally adjusted index of refinancing applications climbed 4.9 percent last week, and its gauge of loan requests for
home purchases dropped 3.7 percent.
Building Permits
The Commerce Department will release data Housing data at 0830 EST.
U.S. housing starts rose slightly more than expected in November, but a surprise drop in permits for future home construction to a 1-1/2 year low
indicated continued weakness in the housing market even as the economic recovery gains traction.
The Commerce Department had said that housing starts rose 3.9 percent to a seasonally adjusted annual rate of 555,000 units. October's starts were
revised up to a 534,000-unit pace from the previously reported 1-1/2 year low rate of 519,000 units.
Despite last month's pick-up in residential construction, housing remains weak as a 9.8 percent unemployment rate weighs on demand and
homeowners' ability to hang on to their properties, lagging an acceleration in broader economic activity.
New building permits fell 4.0 percent to a 530,000-unit pace in November, the lowest since April 2009, after a 0.9 percent increase in October.
Permits were dragged down by a 23 percent plunge in the volatile multi-family segment. Permits for single-family homes rose 3 percent last month.
Analysts had expected overall building permits to rise to a 560,000-unit pace in November.
November was lifted by a 6.9 percent rise in single-family home construction. Starts for the multi-family segment, however, fell 9.1 percent. New
home completions tumbled 14.1 percent to a record low 513,000 units in November.
The Intelligent Investor - U.S.
Economic Events
Company Events
eBay will release its fourth quarter results. Analysts expect the company to report a profit of 47 cents per share, slightly up
from 44 cents reported in the year-ago quarter. eBay Inc. reported GAAP net income of $432 million or 33 cents per share
for the third quarter, compared to $350 million or $0.27 per share in the prior year quarter. Net revenue grew 1% to $2.25
billion from $2.24 billion a year earlier. Excluding Skype, net revenue rose 10% from $2.05 billion in the third quarter of
2009.
Analysts expect Goldman Sachs’ profits to decline heavily for the fourth quarter with an expectation of $3.76 per share,
compared to $8.2 reported in the same quarter last year. For the third quarter, Goldman Sachs reported net earnings of
$1.74 billion or $2.98 per share, sharply lower than $3.03 billion or $5.25 per share in the prior-year quarter, but sharply
higher than $613 million or 78 cents per share in the second quarter of 2010. Its quarterly net revenues for the quarter,
including net interest income, dropped 28% to $8.90 billion from $12.37 billion in the same quarter last year.
The fifth-largest US bank by deposits, U.S. Bancorp, is scheduled to release its fourth-quarter earnings. Analysts, expect
the company to report earnings of 46 cents per share on revenue of $4.52 billion. In the year ago quarter, the company
reported earnings of 30 per share on revenue of $4.33 billion.