Off the Wires

Bob Diamond's evidence to MPs branded implausible

July 4th, 2012  |  Source: The Guardian

Banker's responses on rate fixing scandal questioned by Treasury committee chairman, while chancellor claims Labour ministers 'clearly involved'

The ousted Barclays chief executive Bob Diamond is facing fresh pressure after the chairman of the House of Commons Treasury select committee described some of his evidence to MPs yesterday as "implausible", as the row grew over who was at the heart of manipulation of interest rates during the credit crisis.


Libor fallout fears haunt London banks

July 2nd, 2012  |  Source: FT.com

 

The two London banks most exposed to fears about the wider implications of the Libor-fixing scandal were the biggest losers on the FTSE 100 on Monday.

News that Marcus Agius had resigned as chairman of Barclays, which said it would set up an audit of its business practices, did not stem the volatility in the bank’s stock, which oscillated between 166p and 156.6p in a torrid start to the session.

 “Whether Marcus Agius’s departure will be enough to prevent Bob Diamond being forced out as chief executive is the key question,” said Rebecca O’Keeffe, head of investment at Interactive Investor.

“Barclays was the only UK bank that fell on Friday, despite the optimism created by the European summit. Many expected a rebound this morning, but the stock has already given up its very early gains.”

As the session developed, Barclays fell 2.6 per cent to 158.6p.

Sector peer Royal Bank of Scotland was also under pressure. Reports that one of the traders who it had dismissed in relation to the way in which it contributed to setting interbank lending rates was suing the bank for unfair dismal were enough to raise the prospect of a flurry of legal action around the sector. RBS was 2 per cent weaker at 211.1p.

The two lenders saw the biggest single falls on London’s benchmark index.

Abstract only full report here:

http://www.ft.com/intl/cms/s/0/60f67566-c411-11e1-850c-00144feabdc0.html#axzz1zTtNFotC


Somali Militants Say Obama Is Worth 10 Camels

June 13th, 2012  |  Source: Mother Jones

 

Al-Shabaab—the population-terrorizing Al Qaeda-linked Islamist group in Somalia that has carried out deadly bombings in Ugandaand elsewhere—has an odd sense of humor. As BBC News reported on Monday:

After the US put bounties on the heads of al-Shabab commanders, senior militant official Fuad Muhammad Khalaf announced: "Whoever reveals the hideout of the idiot Obama will be rewarded with 10 camels, and whoever reveals the hideout of the old woman Hillary Clinton will be rewarded 10 chickens and 10 roosters," he said after Friday prayers.


The wise fool of Google

June 7th, 2012  |  Source: FT.com

 

Chade-Meng Tan, it occurs to me after spending an hour talking to the man, is a fool.

Not a fool in the dunderhead sense, as he has an IQ of 156 – which makes him more like a genius. But Google employee #107, who joined the search engine company as an engineer in its start-up days, has become a corporate version of the Shakespearean fool, a jester and a truth-teller.

Read on here: http://www.ft.com/intl/cms/s/0/e5ca761c-af34-11e1-a4e0-00144feabdc0.html#axzz1x6kJ4LAD


The sorry fate of tech pioneer Halsey Minor and historic Virginia estate Carter’s Grove

June 4th, 2012  |  Source: Washington Post

 

It was reputed to be America’s loveliest Colonial­-era plantation house, a jewel of Georgian architecture. Its interiors, with opulent walnut and yellow pine paneling, parquetry and grand staircase — the work of a master joiner summoned to Colonial Virginia from England — are lauded in its National Historic Landmark paperwork as the most beautiful in the South.

For the better part of three centuries, Carter’s Grove rested serenely on the northern bank of the James River. It was built in 1750 by Carter Burwell, grandson of Robert “King” Carter, the English colony’s early land baron, to awe visitors with physical evidence of the bountiful riches that could be wrung from the New World wilderness.

Before the house, the land was the site of Martin’s Hundred plantation and Wolstenholme Towne, an ill-fated English settlement founded in 1620, just a few years after the establishment of Jamestown five miles upriver. Wolstenholme was destroyed during a native Powhatan massacre of English settlers in 1622.

But Carter’s Grove had better luck. For 260 years, it steadfastly survived looting, flood, hurricane, earthquake, a Hollywood crew filming a now-forgotten Cary Grant movie, and a marauding Revolutionary War colonel who billeted his Redcoats there and, legend has it, rode a horse up the main staircase, hacking the grand railing with his sword along the way. A 1928 renovation diminished the Palladian perfection of its exterior, but still, it endured.

Carter’s Grove may have finally met its ruin, however, in the unlikely form of Halsey Minor, a brash 40-something technology investor living in San Francisco.

For the full story, go to: http://www.washingtonpost.com/lifestyle/magazine/the-sorry-fate-of-a-tech-pioneer-halsey-minor-and-historic-virginia-estate-carters-grove/2012/05/30/gJQAwdJG4U_print.html


Tintin Cover Fetches $1.6M

June 3rd, 2012  |  Source: Daily Beast

A rare original Tintin in America cover set a record price on a Paris auction block Saturday, netting $1.6 million.

Drawn by the creator of Tintin, it’s not the first time this piece has set comic book records – the same cover established the record in 2008 when it went for just under $1 million.

The piece was reportedly bought by a private collector, and is one of five original Tintin covers known to be in existence. “If he’d have been able to get it for less I think he would have been happy,” the friend who represented the anonymous buyer at the auction told reporters. The friend would give his name only as Didier. “The aim was not to beat a record; the aim was to obtain the work, before anything else.”

Read it at The Hollywood Reporter


Ferrari GTO Becomes Most Expensive Car At $35 Million

June 1st, 2012  |  Source: Bloomberg

A 1962 Ferrari 250 GTO made for race driver Stirling Moss has become the world’s most expensive car, selling in a private transaction last month for $35 million.

The distinctive apple-green Ferrari, one of 39 GTOs produced from 1962 to 1964, is listed among May’s high-end sales at anamera.com, a website for classic car dealers. Two specialist traders last night independently confirmed the transaction and price to Bloomberg News.

 

The car was sold with the last two weeks by the Dutch-born businessman Eric Heerema, owner of the Nyetimber vineyard in Sussex, southern England. The buyer is U.S.-based classic car collector Craig McCaw, the dealers said. Heerema was not available for comment when Nyetimber was contacted by Bloomberg News. McCaw was also unavailable for comment when his company Eagle River Investments was telephoned.

“The market is very active at the moment,” said James Cottingham, acquisition consultant for Ferrari dealer DK Engineering, based in Hertfordshire, U.K. “A lot of new buyers are expanding their collections and the baby-boomer generation of collectors has reached an age when they’re not using their cars as much as they used to. They want to sell.”

McCaw, who is based in the Seattle area, was the co-founder of McCaw Cellular, which was acquired by AT&T for $11.5 billion in 1993.


Facebook Seen Dropping 20% To Gain Parity With Nasdaq Rivals

May 30th, 2012  |  Source: Bloomberg

 

Facebook would have to drop another 20 percent for its valuation to match other companies that do business over the Internet.

Facebook, with a market capitalization of $79.1 billion, is trading at 29.5 times the company’s projected 2014 profit of $2.69 billion, data compiled by Bloomberg show.

The stock would have to dive to $23.07 to match the average price-to-earnings ratio for the Nasdaq Internet Index based on estimated earnings in the next 12 months, according to the data.


Apple’s Cook Skips $75 Million Dividend Distribution — Without Explanation

May 25th, 2012  |  Source: 247WallSt.com

Tim Cook, Apple’s (NASDAQ: AAPL) CEO, must think the hundreds of millions of dollars in compensation he has earned since taking the chief executive position is enough. He will forgo dividend payments Apple gives to employees with restricted stock that has not vested, under a program recently announced by the world’s most valuable company.

In an 8K, the firm said:

The amendments provide that if the Company pays an ordinary cash dividend on its common stock, each award will be credited with an amount equal to the per-share cash dividend paid by the Company, multiplied by the total number of restricted stock units subject to the award that are outstanding immediately prior to the record date for such dividend.


Cook is not stupid, so he must be generous. Or he wants the company’s employees and investors to think that he, like everyone else in management, is only worth so much.

Read more: Apple’s Cook Skips $75 Million Dividend Distribution — Without Explanation - 24/7 Wall St. http://247wallst.com/2012/05/24/apples-cook-skips-75-million-dividend-distribution-without-explanation/#ixzz1vt3fpfBL


Facebook shares sink below $38 IPO price

May 21st, 2012  |  Source: NY Post

Facebook's stock is tumbling well below its $38 IPO price in the social network's second day of trading as a public company on Monday.

By early afternoon, the stock was at $34.04, down 11 percent from Friday's closing price of $38.23.

Investors and technology industry watchers are closely tracking the Menlo Park, Calif.-based company's shares. Facebook's initial public stock offering was one of the most anticipated ever, and now serves as a bellwether for other social media companies.

"There must have been some sober second thoughts about this," said Brian Wieser, an analyst at Pivotal Research Group who was first to come out with a "Sell" rating on Facebook's stock on Friday.

It's not that he thinks the world's largest online social network is a bad investment. But at $38 per share, it's just too expensive considering the risks associated with Facebook's brief history and unproven advertising model, he says. His fair price, or "target price," is $30.

To be fair, Facebook's market debut Friday suffered some hiccups. Trading on the Nasdaq was delayed for a half hour due to issues with traders' orders. The stock closed Friday just a few cents above where it priced Thursday night. Although many investors had hoped for a big first-day pop, Facebook's stock opened Friday at $42.05 and fluctuated between $45 and $38 throughout the day before closing at $38.23.

Wedbush analyst Michael Pachter, who came out with an "Outperform" rating on Facebook before its IPO, said he thinks the investment banks that arranged the offering overestimated demand for the company's stock. Last week, the bankers, led by Morgan Stanley, increased the offering price range. On Wednesday, Facebook's early investors and other stockholders increased the number of shares they planned to sell in the IPO. Both moves appeared to signal strong demand for the shares.

"The late addition of 84 million shares to the offering overwhelmed demand, limiting the first day price," Pachter said in a note to investors.

On Monday, Facebook Inc.'s stock fell $4.19 to $34.04 in early afternoon trading. The stock dropped as low as $33 earlier.

Shares of some related social media companies also declined Monday. Zynga Inc., which makes FarmVille, CityVille and Mafia Wars, and gets the bulk of its revenue from Facebook users, fell 4 percent to $6.87. The stock hit as low as $6.36, its lowest level since the San Francisco company's December IPO. LinkedIn Corp., a network for professionals, dropped 2 percent to $96.97.




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