Morning Market Roundup: Greece Finally Reaches a Deal, Groupon and PepsiCo Announce Earnings
- Posted on February 9, 2012 at 9:56am by
Becket Adams
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Here’s what’s important in the financial world this morning:
EU: After weeks of talk, Greek political leaders finally reached a deal on Thursday to support a package of severe austerity measures demanded by Greece’s creditors in return for the country’s latest bailout, the New York Times reports.
“The deal is expected to unlock the 130 billion euros, or $172 billion, in new loans and save Greece from potentially disastrous default,” the Times reports. “Talks between Prime Minister Lucas D. Papademos and the three leaders backing his coalition had stalled overnight over proposed cuts to pensions, but on Thursday leaders said they had found a way of plugging the 300 million euro shortfall by cutting defense spending and other expenditures.”
“We have a deal,” a government official said Thursday afternoon.
China: China reported consumer prices increased 4.5 percent in January from the previous year. This is higher than the 4 percent expectation due to increased spending from a weeklong holiday. The unexpected inflation acceleration will pressure officials to keep from making instant cuts in the banks’ reserve requirements, according to Bloomberg.
Groupon: The deal-of-the-day website reported a $9.8 million fourth quarter loss ($0.02 per share). This is down from its $185 million loss for the same quarter in the previous year. Disappointed investors reacted by driving down the company’s stock 13 percent in after-hours trading. But there was good news for Groupon: its fourth quarter revenue rose 194 percent to $506.5 million from the same quarter a year ago, beating analysts’ estimates.
PepsiCo, Inc.: Pepsi reported its fourth quarter profit increased 4 percent to $1.42 billion ($0.89 cents per share), up from $1.37 billion ($0.85 per share) from 2010′s final three months. The company announced plans to cut three percent of its global workforce (8,700 employees) to produce $1.5 billion in savings by 2014, according to MarketWatch. The company will also increase its annual dividend by 4 percent to $2.15 per share, buy back at least $3 billion in stock and increase marketing spending near $600 million in 2012.
[Editor’s note: portions of the above originally appeared on Wall St. Cheat Sheet.]
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dlivelli
Posted on February 9, 2012 at 1:10pmI just don’t get this crap….it is like the bank that holds your mortgage loaning you more money to pay your mortgage…what???? Would it not be better to just write down the debt? Either way money is lost so why make the hit bigger? Do they really think these people are going to get off their dead butts and work? It takes generations to change mentalities…..it is almost impossible to force. Just prolonging and increasing the pain that is STILL going to come. What is it the Chinese say…no ticket no laundry….why are we giving them their laundry and cleaning it all for free?!
Report Post »lukerw
Posted on February 9, 2012 at 12:57pmWHAT? — My head is stuck in the Sand!
Report Post »seeker9
Posted on February 9, 2012 at 12:38pmAAPL now up $19. I can see a new Lexus from my house!
Report Post »seeker9
Posted on February 9, 2012 at 11:49amAAPL now up $16! Must go take some off the table. Can’t ever go broke by taking a profit.
Report Post »seeker9
Posted on February 9, 2012 at 11:02amWOW! AAPL up $12 closing in on $500. What a stock to be a holder of!
Report Post »teddrunk
Posted on February 9, 2012 at 11:01amGeez, PepsiCo is acting like an evil greedy corporation by cutting personnel. l thought they’d help their Hope & Change buddy out and increase, not decrease jobs.
Report Post »cessna152
Posted on February 9, 2012 at 12:17pmIt was funny, the last Tea party I went to had about 1500 people. The location (vendor on site) was selling Coke and Pepsi. I have to hand it to the Tea party people, they do their homework.. the vendor sold out of Coke and water with in the first two hours and the Pepsi just sat there. It gets better, when people went up to the vendor and asked for a Coke he said “we only have Pepsi”, the Tea Partier would ask for a cup then walked over to the spigot and got water. The look on his face every time was classic…
Dejected, even at half price at the end of the event nobody bought Pepsi. He had to load it all back into his truck..LOL
Report Post »booger71
Posted on February 9, 2012 at 1:43pmWell the Obama administration seems to prefer Coke:
“Though Pepsi is available in the West Wing mess, it is rarely, if ever, seen out in the open. On Thursday, the recycling bin outside White House spokesman Robert Gibbs’ office contained six cans of Diet Coke and one can of Sprite Zero, which is also a Coca-Cola product. In another part of the building, I asked a White House official, who had a can of Diet Coke sitting on his desk, if the Obama Administration had a clear bias for Coke over Pepsi. “I think that’s true,” the official responded, with a smile. “Don’t most Americans?”
To a certain degree, yes. Nationwide, Coke is more popular than Pepsi, but not by the same margin seen among White House staff. Beverage Digest, a trade publication, reported that Coke and Diet Coke had a 27.2% share of the carbonated-beverage market in 2007, compared with a 16.7% share for Pepsi and Diet Pepsi.”
Read more: http://www.time.com/time/nation/article/0,8599,1882167,00.html#ixzz1luZnchoy
Report Post »cloudsofwar
Posted on February 9, 2012 at 10:56amgreece still ticking another bailout. the time is not right for a default wait until this summer a few months before our election. greece default leads to more chaos and empowers OWS against the rich. tick tick tick the clock counts down.
Report Post »marhee9
Posted on February 9, 2012 at 10:11amAt the rate were going, we’ll be asking Greece to bail out n a few years. Wake up America. We have a $15 trillion dollar debt, no budget, and liberals looking to increase spending. This will not end well, just ask Greece. If you don’t know the history of Planned Parenthood, this is a must see. http://www.youtube.com/watch?v=9GEYAbSoYxs
Report Post »dfree
Posted on February 9, 2012 at 10:00amKickin’ the can down the road, still!
Report Post »netmail
Posted on February 9, 2012 at 10:49amThe ‘road’ has come to an end. The ‘can’ repossessed and tossed in to the landfill of history. They just haven’t told us yet.
Report Post »TheObamanation
Posted on February 9, 2012 at 11:27amI think we’ve finally come to … kicking the can over the cliff …
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