Morning Market Roundup: Greece Rejected! Nokia Dumped! Japan Shunned!
- Posted on January 24, 2012 at 10:15am by
Becket Adams
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Here’s what’s important in the financial world this morning:
Greece: On Monday, eurozone finance ministers rejected the private creditors’ offer for Greece’s debts. The negotiators resumed talks for a resolution to avoid a default. The bondholders were asking for a coupon rate of four percent on long-dated bonds in exchange for the current debt while Greece has said it can’t pay more than 3.5 percent. There is hope the deal can be resolved in the next few days.
(Related: Finance Ministers Reject Private Bondholders’ Greek Debt Offer.)
Japan: Japan will likely announce on Wednesday, its first annual trade deficit in a very long time. The country hasn’t had one since 1980 and with the news, economists will warn deficits may be seen for years from the strong yen and weak global demand.
The country is already off to rough start this week as it is expected to report today that it will miss its balanced budget goal by 2020 through its proposed doubled sales tax. The Bank of Japan also cut its fiscal year 2012 growth rate to +2 percent, down from October’s estimated +2.2 percent.
Apple: The tech giant will report its earnings after the bell today and is expected to report a strong fiscal quarter one. Earnings per share is expected to jump 57 percent to $10.08 and revenues will rise 45.3 percent to $38.85 billion. Driving the good numbers for Apple is its robust iPhone 4s sales but concerns remain for the company’s ability to maintain its growth.
Nokia Corp.: Shares plummeted 7 percent after Danske Bank cut the stock’s rating to “Sell” according to Bloomberg. The company’s downgrade comes from declines in shipments for older Symbian phones; Danske Bank doesn’t see Nokia’s Windows Phone compensating for the drop.
On Thursday, Nokia will report its fourth quarter earnings. Investors will keep a close eye on the demand numbers for the Windows Phone. Adding concern about the upcoming report is the wireless business weaknesses announced by Texas Instruments Inc. and STMicroelectronics N.V. on Monday.
[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]
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JRook
Posted on January 24, 2012 at 11:52amA much wiser individual than anyone here once said, and I paraphrase, “You borrow $10,000 from the bank and can’t pay it back…it is your problem“ ”You borrow $10 million from the bank and can’t pay it back it is the banks problem” Donald Trump. The creditors can take 3.5% or reductions in the principal. At the end of the day you can’t foreclose on a country.
Report Post »garygromele
Posted on January 24, 2012 at 11:37amPaper instruments like Paper Tigers, will always get burned in the end. You MUST deal in physical assets, as Gerald Celente can attest to.
Report Post »Ironeagle
Posted on January 24, 2012 at 11:13amAnd our markets go rolling along!
Report Post »Balthazor
Posted on January 24, 2012 at 10:54amOnly Ron Paul can save Greece now! And Nokia! And Japan! Vote Ron Paul or Apple will perish too!!!
Report Post »carbonyes
Posted on January 24, 2012 at 11:54amPsst. Let you in on a secret. Neither Ron Paul, nor anyone else can save Greece.
Report Post »AvengerK
Posted on January 24, 2012 at 10:48amGreece will tank don’t doubt it for one second. Itally will tank as will Portugal and Spain. The Euro will never be the same again. Why do you think Georgoe Soros is struggling so hard to save the Euro? Because he’s bought over $2 billion in European debt (mostly Italian) from wait for it…MF Global. Why do you think Germany is trying so hard to save the Euro? Because a return to the Deuschmark would raise the value of German currency around 20% and price the Germans out of the trade boom they’ve enjoyed since taking on the Euro. Make no mistake, the problem with Europe isn’t liquidity, it‘s a systemic inadequecy to meet it’s social program costs coupled with populations that avoid paying taxes as much as possible. You cannot sustain programs based on tax revenue with a population that dodges taxes and doesnt’ have an adequate GDP to compensate. There will either be a reduction in Euro nations or the Euro will be dropped entirely. You’re looking at credible likelihoods of Spain, Italy, Portugal Ireland and Greece defaulting.
Report Post »cloudsofwar
Posted on January 24, 2012 at 11:50amif the euro collapses and takes down soros that would be at lease one good result.
Report Post »carbonyes
Posted on January 24, 2012 at 11:56amGee, it would be a shame to see Soros lose his azz. It would be much better to see him lose his head.
Report Post »lukerw
Posted on January 24, 2012 at 10:45amIf you’re in bed with China (alike Apple)… life is good!
Report Post »mbriz
Posted on January 24, 2012 at 11:23amAs long as your not a worker in the factory.
Report Post »starman70
Posted on January 24, 2012 at 10:45amHere’s a GREAT IDEA! Let George Soros buy all of Greece’s debt. That way he could become king of a country, just what he wants.
Report Post »AvengerK
Posted on January 24, 2012 at 10:49amHe’s bought about $2 billion worth of Italian debt from MF Global. Why do you think he’s lobbying so hard to save the Euro? He bet on the wrong horse this time.
Report Post »Gonzo
Posted on January 24, 2012 at 11:10amHell he’s already king of the greatest country on Earth as long as Obama stays in office.
Report Post »bullandbearmash
Posted on January 24, 2012 at 10:44amApple sells high priced gadgets into a consumer base over the web and through retail stores (high overhead).
IT hardware ALWAYS declines in price over time.
Figured it out? Enjoy it while it lasts.
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