Morning Market Roundup: ‘Pathetic’ 4Q GDP Growth, Japan’s Retail Sales
- Posted on January 27, 2012 at 10:08am by
Becket Adams
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Here’s what’s important in the financial world this morning:
GDP: The final “pathetic” growth number for 2011 is 1.7 percent, according to Business Insider. From the GDP report:
Real GDP increased 1.7 percent in 2011 (that is, from the 2010 annual level to the 2011 annual level), compared with an increase of 3.0 percent in 2010.
The increase in real GDP in 2011 primarily reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment that were partly offset by negative contributions from state and local government spending, private inventory investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
Japan: Japan’s Trade Ministry reported that the country’s December’s retail sales 2.5 percent growth represented its fastest pace in more than a year. This exceeded forecasts of 2.1 percent.
The increased consumer demand could be temporary as export and production declines may soften employment and incomes.
Japan also reported that core CPI dropped an annualized 0.1 percent in December. This was the third consecutive decline and it may be spur sustained deflation concerns.
(Related: EU, IMF: Greece Must Push Through More Cuts to Receive Aid.)
Stabucks: The coffee giant reported another strong earnings report with its fiscal quarter one earnings per share rising 10 percent to $0.50 (beating analysts’ expectations) and revenue up 16 percent to $3.4 billion. The company saw growth at its Americas unit and Asian operations.
Starbucks also reported a strong start in product sales for Green Mountain’s Keurig machines. But one concern from the report, was Starbucks’ conservative guidance from higher commodity costs.
Honda: President Takanobu Ito has forecast a positive picture for his company, predicting that fiscal year 2013 business results will jump to levels last seen before the Lehman collapse five years ago. Ito also said volume could surpass 4 million vehicles for the first time thanks to sales of a new Accord model and Civics in North America, according to Bloomberg
In an interview earlier this week, Ito said, “It will be the year of the complete rebound. Sales in North America will lead the recovery. We’ll introduce a fully revamped Accord in the fall, and that will be a big plus to our sales.”
Samsung Electronics: Samsung’s fourth quarter net profit jumped 17 percent to KRW 4 trillion ($3.57 billion) as record smartphone sales took some pressure from the firm’s other businesses, which haven’t fared as well from declining global demand. Even from the positive sales numbers, the company’s profit still came in lower than analysts’ estimates.
[Editor’s note: portions of the above are from a cross post that originally appeared on Wall St. Cheat Sheet.]
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doyley64
Posted on January 27, 2012 at 2:06pmI can tell you as a business person. that if we get obama out of office this november, the economy will recover. if we have 4 more years of obama, then it won’t . I know in my business , there are a lot of capital purchases that I need to make. but I will not make them until I am sure of the stability of our government policies and regulations.
Report Post »JRook
Posted on January 27, 2012 at 12:53pm‘Pathetic’ 4Q GDP doesn’t anyone ever check these report titles or content. The 4th. quarter growth was actually pretty strong which made 2011 better than it would have been otherwise.
Report Post »T-2
Posted on January 27, 2012 at 11:15amif you only let Barry have control of everything, we’ll be better off…look at N. Korea
Report Post »Thinking Man
Posted on January 27, 2012 at 11:02am1.7% may sound small. But, if you take inflation out of that equation, we are still in the negative growth range.
Report Post »ChiefGeorge
Posted on January 27, 2012 at 10:51amJoe Granville said on the bloomberg report the other day that the market has only days before it implodes as he has predicted several of these events before and based on the same data he has used in the past to monitor the health of the markets, he sees a collapse beginning within days eventually taking the markt down at least by 4k. In mar/08 he said the market would drop 9k, it dropped 8900 roughly.
Report Post »Gonzo
Posted on January 27, 2012 at 10:20amThe final “pathetic” growth number for 2011 is 1.7 percent.
Report Post »…and Barry said “America is back” in SOTU. What a tool.
lukerw
Posted on January 27, 2012 at 10:19amPushing the Flush Handle…
Report Post »carbonyes
Posted on January 27, 2012 at 12:07pmHopefully, you are flushing Obama. That is the only way to slow the decline, which will continue till bottom is hit, but if Obama and his policies are not gutted, the decline will be more precipitous and the bottom will be much further down. Major slashing of spending needs to start yesterday, and we better find some people soon with balls to begin the painful process, least the global meltdown should do it for us. Not the least bit funny, but it will be happening soon, and it will be very exacting
Report Post »autofixer
Posted on January 27, 2012 at 10:17am1.7%, enough said. It is a positive number and that is all the media cares about.
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