NH Hoteles shareholders BlackRock and THS increase stakes
NH Hoteles shareholders BlackRock and Taube Hodson Stonex (THS) have increased their stakes in the company, a report in the Spanish business daily Expansion said. The report cited unnamed market sources.
According to the report, BlackRock has increased its stake from 5.62% to 9%, while THS is understood to have taken its stake from 3.89% to over 5%.
NH Hoteles lost EUR 18.53m in 2013 and EUR 292m in 2012, the item noted.
Source Expansion
Zero Hedge, still end of the world article...but worth reading
20 Early Warning Signs That We Are Approaching A Global Economic Meltdown {http://bit.ly/1juSU1D
Have you been paying attention to what has been happening in Argentina, Venezuela, Brazil, Ukraine, Turkey and China? If you are like most Americans, you have not been. Most Americans don't seem to really care too much about what is happening in the rest of the world, but they should. In major cities all over the globe right now, there is looting, violence, shortages of basic supplies, and runs on the banks. We are not at a "global crisis" stage yet, but things are getting worse with each passing day. For a while, I have felt that 2014 would turn out to be a major "turning point" for the global economy, and so far that is exactly what it is turning out to be. The following are 20 early warning signs that we are rapidly approaching a global economic meltdown...
#1 The looting, violence and economic chaos that is happening in Argentina right now is a perfect example of what can happenwhen you print too much money...
For Dominga Kanaza, it wasn’t just the soaring inflation or the weeklong blackouts or even the looting that frayed her nerves.
It was all of them combined.
At one point last month, the 37-year-old shop owner refused to open the metal shutters protecting her corner grocery in downtown Buenos Aires more than a few inches -- just enough to sell soda to passersby on a sweltering summer day. #2 The value of the Argentine Peso is absolutely collapsing.
#3 Widespread shortages, looting and accelerating inflation are also causing huge problems in Venezuela...
Economic mismanagement in Venezuela has reached such a level that it risks inciting a violent popular reaction. Venezuela is experiencing declining export revenues, accelerating inflation and widespread shortages of basic consumer goods. At the same time, the Maduro administration has foreclosed peaceful options for Venezuelans to bring about a change in its current policies.
President Maduro, who came to power in a highly-contested election last April, has reacted to the economic crisis with interventionist and increasingly authoritarian measures. His recent orders to slash prices of goods sold in private businesses resulted in episodes of looting, which suggests a latent potential for violence. He has put the armed forces on the street to enforce his economic decrees, exposing them to popular discontent. #4 In a stunning decision, the Venezuelan government has just announced that it has devalued the Bolivar by more than 40 percent.
#5 Brazilian stocks declined sharply on Thursday. There is a tremendous amount of concern that the economic meltdown that is happening in Argentina is going to spill over into Brazil.
#6 Ukraine is rapidly coming apart at the seams...
A tense ceasefire was announced in Kiev on the fifth day of violence, with radical protesters and riot police holding their position. Opposition leaders are negotiating with the government, but doubts remain that they will be able to stop the rioters. #7 It appears that a bank run has begun in China...
As China's CNR reports, depositors in some of Yancheng City's largest farmers' co-operative mutual fund societies ("banks") have been unable to withdraw "hundreds of millions" in deposits in the last few weeks. "Everyone wants to borrow and no one wants to save," warned one 'salesperson', "and loan repayments are difficult to recover." There is"no money" and the doors are locked. #8 Art Cashin of UBS is warning that credit markets in China "may be broken". For much more on this, please see my recent article entitled "The $23 Trillion Credit Bubble In China Is Starting To Collapse – Global Financial Crisis Next?"
#9 News that China's manufacturing sector is contracting shook up financial markets on Thursday...
Wall Street was rattled by a key reading on China's manufacturing which dropped below the key 50 level in January, according to HSBC. A reading below 50 on the HSBC flash manufacturing PMI suggests economic contraction. #10 Japanese stocks experienced their biggest drop in 7 months on Thursday.
#11 The value of the Turkish Lira is absolutely collapsing.
#12 The unemployment rate in France has risen for 9 quarters in a row and recently soared to a new 16 year high.
#13 In Italy, the unemployment rate has soared to a brand new all-time record high of 12.7 percent.
#14 The unemployment rate in Spain is sitting at an all-time record high of 26.7 percent.
#15 This year, the Baltic Dry Index experienced the largest two week post-holiday decline that we have ever seen.
#16 Chipmaker Intel recently announced that it plans to eliminate 5,000 jobs over the coming year.
#17 CNBC is reporting that U.S. retailers just experienced "the worst holiday season since 2008".
#18 A recent CNBC article stated that U.S. consumers should expect a "tsunami" of store closings in the retail industry...
Get ready for the next era in retail—one that will be characterized by far fewer shops and smaller stores.
On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It's the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy's.
Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions. #19 The U.S. Congress is facing another deadline to raise the debt ceiling in February.
#20 The Dow fell by more than 170 points on Thursday. It is becoming increasingly likely that "the peak of the market" is now in the rear view mirror.
And I have not even mentioned the extreme drought that has caused the U.S. cattle herd to drop to a 61 year low or the nuclear radiation from Fukushima that is washing up on the west coast.
In light of everything above, is there anyone out there that still wants to claim that "everything is going to be okay" for the global economy?
Sadly, most Americans are not even aware of most of these things.
All over the country today, the number one news headline is about Justin Bieber. The mainstream media is absolutely obsessed with celebrity scandals, and so is a very large percentage of the U.S. population.
A great economic storm is rapidly approaching, and most people don't even seem to notice the storm clouds that are gathering on the horizon.
In the end, perhaps we will get what we deserve as a nation.
Signet Group plc Corvex discloses 7.8% stake; have had strategy discussions with the board - filing - The Reporting Persons acquired the Shares over which they exercise beneficial ownership in the belief that the Shares are undervalued and are an attractive investment. Certain of the Reporting Persons have had and may continue to have discussions with the Issuers management and members of the board to discuss the Issuers business and strategies. The Reporting Persons have found their conversations to date with the Board and management to be constructive, and may seek to have additional conversations with the management, Board,
Moody's affirms France rating at Aa1; outlook remains negative - Moody's decision to maintain the negative outlook was driven by the following key interrelated factors: (1) the continued reduction in the competitiveness of the French economy, which risks lowering its long-term growth prospects, as well as (2) the risk of a further deterioration in France's government financial strength. This is reflected in the significant increase in the general government debt-to-GDP ratio to 93.6% in 2013 from 90.2% in 2012, and Moody's expects a further increase to above 95% by the end of 2014. - Although the French government has introduced or announced a number of measures intended to address these competitiveness and growth issues, the implementation and efficacy of these policy initiatives are complicated by the persistence of long-standing rigidities in labour, goods and services markets as well as the social and political tensions the government is facing. Moreover, in Moody's view, France's fiscal policy flexibility is limited, which, together with the policy challenges noted above, imply a continued risk of missing fiscal targets. - At the same time, Moody's has affirmed France's Aa1 government bond rating. Credit positive rating factors that support the affirmation include: (1) France's large and diversified economy which underpins the country's economic resiliency; and (2) the currently modest interest burden relative to total government revenues associated with the government's debt (i.e. its very high debt affordability) as a consequence of its strong investor base, a large tax revenue base, and low funding costs. Moreover, the risks to the French government's finances associated with the euro area debt crisis have -- at least for now -- abated and French banks' direct exposures to peripheral Europe have diminished. **NOTE: S&P cut France to AA in November, and Fitch cut it to AA+ last July. Moodys cut France to Aa1 rating in November 2012
Apple Pushes Deeper Into Mobile Payments Tech Giant Lays Groundwork to Expand Service for Physical Goods
A customer uses PayPal's mobile payment application on her iPhone to make a purchase in Tokyo on Nov. 18, 2013. Photo: Bloomberg News
Apple Inc. is laying the groundwork for an expanded mobile-payments service, leveraging its growing base of iPhone and iPad users and the hundreds of millions of credit cards on file through its iTunes stores. Eddy Cue, Apple's iTunes and App Store chief and a key lieutenant of Chief Executive Tim Cook, has met with industry executives to discuss Apple's interest in handling payments for physical goods and services on its devices, according to people familiar with the situation. In another sign of the company's interest, Apple moved Jennifer Bailey, a longtime executive who was running its online stores, into a new role to build a payment business within the technology giant, three people with knowledge of the move said. Those people said Apple also spoke to at least five other well-known executives in the payment industry about the position before tapping Ms. Bailey. An Apple spokeswoman declined to comment, and declined to make Ms. Bailey available. Ms. Bailey didn't respond to requests for comment. A payment service would launch Apple into what is becoming a fierce battle over how people pay through mobile devices. Other players include eBay's PayPal unit, Google Inc. and startups such as Square Inc. and Stripe Inc. Forrester Research estimates that Americans will spend $90 billion through mobile payments by 2017, up from $12.8 billion in 2012. Just this week, Stripe said it received $80 million in funding that valued the four-year-old startup at $1.75 billion. The same day, activist investor Carl Icahn called for eBay to separate PayPal, which he called "a gem" of its business, into an independent company. Mr. Icahn also owns a stake in Apple, and has been pushing the company to return more money to shareholders. In a letter to Apple shareholders Thursday, Mr. Icahn urged the company to invest in mobile payments. "We believe a revolutionary payments solution is now a very real opportunity that the company could choose to pursue," Mr. Icahn wrote. Currently, Apple handles payments for movies, books, and music purchased through its iTunes store. Consumers can also buy apps and pay for items such as digital goods within an app through an iTunes account. In its retail stores, Apple allows shoppers to pay for some products by scanning the item and paying with a credit card tied to iTunes. It has introduced new technologies that could allow for paying through an iPhone, including a fingerprint reader for security and an iBeacon location-sensor that detects when someone is nearby. However, Apple doesn't allow consumers to pay for physical goods and services, such as shopping for clothes or hiring ride-share service Uber, using an iTunes account. Users still need to input the credit-card information manually, an extra step that often deters purchases on smartphones. The potential for Apple is enormous—the company said last year it had 575 million registered users with its iTunes store, and it has sold roughly 375 million iPhones over the past five years and about 155 million iPads since its 2010 debut. "Apple is absolutely the sleeping giant in the payments world," said Denee Carrington, analyst at Forrester Research. "They have the capability; they just haven't tied it all together." The Journal reported in 2012 that Apple had studied ways to break into payments, going as far as working on a "wallet app," before scaling back ambitions over concerns that customers might blame Apple for a bad experience with a merchant. In April 2013, Mr. Cook told investors on a conference call that mobile-payment technology was "in its infancy." Speculation about Apple's interest heightened earlier this month with the disclosure that Apple had applied for a patent covering payments for goods through a signal sent from a phone to a wireless receiver. The patent could indicate an interest in letting iPhone users pay for goods in stores through their phones. It isn't clear what Apple's exact plans are or how far along it is in its strategy. Apple could offer iPhone users the option to fill in credit-card information automatically based on a card already registered with iTunes. Another possibility, raised by one industry executive, would be to reduce fraud by using an iPhone's fingerprint reader before completing an online purchase. "If Apple is in the game, it certainly changes the space and would make merchants think differently about who to partner with," said Ms. Carrington. Write to Douglas MacMillan at douglas.macmillan@wsj.com and Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com
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MORE: France Rating Affirmed By Moody’s, Maintains Neg. Outlook 2014-01-24 22:19:55.837 GMT
By Louisa Fahy Jan. 24 (Bloomberg) -- Moody’s sees debt-to-GDP ratio rising above 95% by end-2014 from 93.6% in 2013. * “Even assuming the government is successful in implementing fiscal consolidation measures, the debt-to-GDP ratio is unlikely to start to fall until 2016,” Moody’s says * Moody’s sees continued risk of France missing fiscal targets * Moody’s would consider moving outlook to stable, eventually upgrade debt rating, if planned economic reforms and fiscal measures are implemented and effective * Moody’s would likely downgrade rating if its confidence in likelihood of implementation of proposed reforms or their effectiveness declined, or if Moody’s views on country’s medium- to LT growth prospects deteriorated Link to Statement:NSN MZXENZ3V2800 <GO> Link to Company News:223727Z FP <Equity> CN <GO>
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the editor responsible for this story: Louisa Fahy at +1-202-624-1942 or lnesbitt@bloomberg.net
Weekly Market Update: Winter Is Coming (for Emerging Markets)
- Global markets went for a rollercoaster ride this week following about a month of tepid, sideways trading. A broad cohort of analysts has been calling for an inevitable correction from record highs and we may be seeing the beginning of the leg downwards. Troubling developments in Chinese financial markets and a huge devaluation in the Argentine Peso late in the week drove back-to-back, triple-digit losses on the DJIA. Over the course of Thursday and Friday, the DJIA and the S&P500 lost about 3% a piece. The first contraction in the flash China HSBC-Markit Manufacturing PMI data in six months also added weight. There was some better data in Europe, although there was almost no positive impact on equities as traders were focused on the global macro picture. The EUR and USD have both appreciated notably as investors seek safe havens, and the yield on the 10-year US Treasury has fallen to 2.72%, its lowest level since last November. For the week, the DJIA dropped 3.5%, the S&P500 lost 2.6% and the Nasdaq declined 1.7%.
- Fresh concerns about China's opaque and over-leveraged banking sector pummeled risk appetite on Thursday. Reports circulated the Industrial & Commercial Bank of China rejected requests from investors to bail out a unit's trust vehicle, China Credit Trust Co.'s high-yield "Credit Equals Gold" fund, which is headed for default on Jan 31st. There have been some reports that suggest Chinese authorities are pushing to let the vehicle default without rescue to "teach investors a lesson." Other reports suggest local provincial officials will scrape together the funds to make investors whole.
- The situation in Argentina worsened all week, and had a pronounced impact on global markets on Friday. On Wednesday, the Argentina Peso weakened by 0.25 to 7.14 to the dollar, and then on Thursday it fell to 8 pesos to the dollar, suffering its biggest daily decline since the crisis of 2002. The central bank intervened and pulled the peso back to 7.79 to the dollar, amounting to a devaluation of more than 15% in just 48 hours. There has been little official explanation for the huge devaluation, although the move comes after the central bank disclosed that foreign reserves had fallen to $29.4B (In 2013 alone, reserves plunged more than $12 billion to $31 billion, down from around $50 billion two years ago) and said it would abandon interventionist monetary policy.
- Natural gas prices spiked up into the $5.00 handle this week for the first time since 2010, as unseasonably cold weather drove up demand. Oil prices also ticked higher, rising off the $92-93 area to test above $96.80. Analysts suggest the opening of new pipelines is finally unclogging the Cushing, Oklahoma bottleneck, draining off stockpiles and boosting demand at Gulf Coast refineries.
- Iran and the west have taken the first steps toward implementing the P5+1 accord reached last November. The UN Nuclear Agency reported Iran has begun suspending uranium enrichment under the deal, leading the EU to formally suspend some sanctions for six months. The White House said it would provide modest sanctions relief per the agreement. At the same time, there were reports that the Iranian government was ready to talk with western oil majors, with even Chevron and ConocoPhillips said to have been approached. Up to 1.2M bpd worth of Iranian production could soon find its way back into markets.
- In its biannual WEO report, the IMF said the global economic recovery is strengthening as countries move away from austerity budgets and financial systems heal. The IMF increased its estimate for world growth this year slightly to 3.7% from 3.6% prior, compared to the 3.0% rate seen in 2013, although it also warned that the global growth rebound remains "weak and uneven." It boosted both China and US GDP forecasts slightly.
- Earnings season rolled along this week, although declines in major names weighed on indices and contributed to the overall slide. Johnson & Johnson, Travelers and Verizon all lost ground on Tuesday despite some decent quarterly results. Travelers more than tripled its Q4 profits versus a year ago on a big decline in catastrophe costs. J&J's saw very strong profit gains, although its initial FY14 outlook was a bit shy of estimates. Verizon's earnings and revenue were way up y/y, although net subscriber additions were less than half the year-ago figure. On Wednesday, IBM reported revenue that were down 5% y/y, thanks largely to ongoing difficulties in the Chinese market. McDonald's Q4 results were not great and comps were terrible, but executives made positive noises about a revamped value menu improving guest traffic in January.
- A few big names reported strong results and fought the prevailing currents. . Microsoft saw modest gains after earnings and revenue totals for its second quarter comfortably beat expectations and offered a rare bit of guidance for the forward quarter that was pretty strong. Consumer names Procter & Gamble and Starbucks were safe havens despite mediocre quarterly numbers. P&G gained although EPS and revenue totals only just met expectations and the firm merely reaffirmed full-year guidance. SBUX slightly topped the consensus view and tweaked its full-year a bit higher.
- At its weekly deposit auction, the ECB failed to fully sterilize bond purchases under its SMP program for the first time ever in a non-holiday market, raising some concerns as to why European banks were seeking so much extra liquidity. The came only a day after eonia spiked up to 0.35% from only 0.14% a week ago. Analysts suggested that rising short-term rates might increase pressure on the ECB to cut its repo rate in February. In any case, eonia eased off later in the week. The better Germany and France PMIs helped drive the euro higher against the dollar, with EUR/USD rising to 1.3690 from 1.3550 in the immediate wake of the data. At Davos on Friday, ECB President Draghi said that even though the recovery is still fragile and risks are to the downside, situation in the Eurozone has improved dramatically over the last year.
- With China jitters building, analysts noted that the environment was strengthening the yen while weakening the Australian Dollar. USD/JPY tested below the 102 level as of Friday, its lowest level since early December, while EUR/JPY approached 140.00. AUD/USD hit three-and-a-half year lows below $0.8760. However China was hardly the Aussie's only problem: RBA Governor Ridout kicked the AUD lower, saying the currency had not fallen enough and AUD/USD around $0.80 would be a fair level for the economy.
- Data is indicating a slow-but-steady economic recovery in the United Kingdom. The pound surged as the ILO Unemployment Rate edged closed to the BOE threshold of 7.0%. GBP/USD gained steadily through Friday morning, rising to just shy of 1.6670, its highest levels since the spring of 2011. The BOE minutes appeared to be a touch dovish and the MPC did not bring up forward guidance. There had been some speculation that BOE Governor Carney could amend forward guidance by changing the unemployment benchmark at which an interest rate hike would be considered to 6.5% from 7% after he said there is no pressing need for a rate increase.
- The Turkish Central bank resisted heavy market pressure to defend a tumbling lira and fight inflation for fear of dampening economic growth ahead of elections this year. The Lira hit fresh record lows against both USD and EUR following the central banking holding rates steady on Tuesday. With the chaos overtaking FX markets later in the week, the central bank was said to have intervened for the first time in two years, by selling dollars.
Closing Market Summary: Stocks Notch January Lows Following Broad Retreat
Equities endured a rough end to the abbreviated week with the S&P 500 seeing its largest weekly loss since June 2012. The benchmark index fell 2.1%, extending its January decline to 3.1%.
The market spent the entire session in a steady slide amid continued concerns regarding China. Furthermore, participants kept a close eye onthe foreign exchange market where emerging market currencies weakened while the Japanese yen saw its second consecutive day of gains. Dollar/yen fell below the 102.50 level after trading near 104.50 on Wednesday. The yen strength came about after Bank of Japan officials said the Japanese economy remains on track and there is no need for additional easing at this time. In turn, this posed a headwind to yen-based carry trades, which played a significant part in last year's market rally.
Like yesterday, the weakness began overnight; however, unlike yesterday, the aggressive selling did not start until the European session kicked off. Regional indices saw broad losses with peripheral markets leading the slide. Spain's IBEX plunged 3.6% while Italy's MIB fell 2.3%.
The overseas weakness set the tone for a lower start in U.S. equities with cyclical sectors leading the decline. Consumer discretionary (-1.9%) and technology (-2.1%) finished just ahead of the broader market thanks to therelative strength of Starbucks (SBUX 74.98, +1.59) and Microsoft (MSFT 36.80, +0.75) after both beat their bottom-line estimates.
Staying on the earnings theme, most of the reports received between yesterday's close and today's open were ahead of expectations but that mattered little to the broader market. However, Kansas City Southern's'(KSU 99.49, -17.79) seven-cent miss mattered quite a bit as the stock plunged 15.2% while also weighing on the Dow Jones Transportation Average, which tumbled 4.1%. This marked the largest one-day loss for the bellwether complex since September 2011 as the broad liquidation resulted in 17 of 20 components posting losses in excess of 2.0%. Due to the sharp losses, the industrial sector (-3.1%) ended at the bottom of the leaderboard.
Elsewhere, financials (-2.3%) and materials (-2.7%) lagged while energy (-2.1%) ended in-line.
Meanwhile, defensive sectors—sans health care—outperformed with losses between 0.9% and 1.1%. Procter & Gamble (PG 79.18, +0.94) contributed to the relative strength of the consumer staples sector after reporting a one-cent beat. For its part, the health care sector lost 2.3%.
Treasuries booked gains with the 10-yr yield ending lower by five basis points at 2.73%.
The aggressive selling fueled strong demand for volatility protection as indicated by a 30.0% surge in the CBOE Volatility Index (VIX 17.89, +4.12), which ended at its highest level since October 15.
For the second day in a row, the selloff was accompanied by above-average volume as 902 million shares changed hands at the NYSE.