Morning Market Roundup: Zynga IPO, IMF to Save Italy
- Posted on November 30, 2011 at 9:01am by
Becket Adams
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Here’s what’s important in the financial world this morning:
EU: Europe may only have a week to rescue itself from financial disaster. The borrowing costs of Italy and Spain have been unsustainably high for too long. The stability fund established to back the debt of the region’s weakest nations has not been deployed and may not be for some time. The region has talked about turning to the International Monetary Fund (IMF), but the agency’s participation is in no way guaranteed. There is a question of how long it will be before capital market investors completely give up on the sovereign paper of Spain and Italy. If it happens before mid-December, there may be no safety net to capture the fallout of a huge default.
India: India’s GDP growth dropped below 7 percent last quarter. That is lower than expected, which may prompt the government to reset its expectations of the speed of expansion next year. The silver lining to the news is that inflation rates may drop. Increases in commodities costs have eroded the buying power of both businesses and individuals. A slowdown in GDP growth does have negative consequences. The second largest nation in the world by population has a significant need to build an infrastructure and banking system similar to those in the developed world. Otherwise, the direction of its growth will be unruly. India does not have a system like China’s where the government controls national investment and the banking system.
U.S.: Cyber Monday sales reached the highest level of any day in history. Research firm Comscore pegs the figure at $1.25 billion. That keeps e-commerce expenditures on a pace to be up 15 percent compared to the November and December 2010. Whether brick-and-mortar revenue can expand at something above the low double digits will be the key to holiday retail success or failure. E-commerce sales are now a large portion of overall holiday revenue. However, at large retailers such as Walmart, they are only about 5 percent of sales. Walmart’s store sales could be weak enough to make e-commerce activity an afterthought.
Tech.: Online social game company Zynga will start its initial public offering (IPO) road show next week. Interest may be buoyed by word that Facebook plans a $10 billion public offering next spring. That could cause a surge in interest in any company associated with the social network business. However, recent tech IPOs may make Wall St. look at Zynga with great caution. The value of LinkedIn has fallen precipitously. Shares in Groupon are off by more than half since its IPO. A further sell-off in the shares of these firms, coupled with a weak stock market, may drive Zynga out of the IPO market for now.
(24/7 Wall St./The Blaze)
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MrsP
Posted on December 1, 2011 at 9:15amThis is one more step to the NWO, it’s pure socialism. I do not ask anything from our gov’t because I was taught that you either made it or failed it! It really doesn’t matter if the Feds print more money, just look back at the German’s history with money. Two ladies went to the store, carrying two baskets full of money, left the baskets outside, and when they came back to get the money, the baskets had been stolen. They were worth more than all of the money that was in them.
In the system that is coming, history will repeat itself. Why, because we have not learned from the past. As American’s, we need to start new businesses, mom and pop shops, and shop there or we are going to be in worse shape than Italy, Spain, Greece, etc.
Report Post »simply one voice
Posted on November 30, 2011 at 8:03pmScenario: Your son goes to an expensive school. He will only drive the latest convertible Porsche and has all his10 major credit cards filled up to the MAX, coming home to you with in completes in all his courses and crocodile tears in his eyes, begging for your financial rescue for the umpteenth time. What do you do? BTW, his nickname is Italy. What do you do?
Report Post »Freedomtothink
Posted on November 30, 2011 at 4:43pmI guess the failure of the Euro will make the U.S. dollar the only established fiat reserve currency remaining. We win again. When the Euro fails the currency traders will be buying and selling U.S. dollars again. If the Euro fails the U.S. dollar will be the only remaining currency worth trading for products and services on an international level.
Report Post »Richard Compton
Posted on November 30, 2011 at 1:08pmWhat is the world is good about the Fed printing more money? All around the world the markets are up over the news that the IMF is going to bail out Italy, and that the FED is going to start up the printing presses. Hasn’t anyone of these so called experts who are going gaga over this false ralley thought of what it means when the Fed begins printing more money?
Report Post »Here’s a short course in economics for them, when the markets is flooded with money what happens to the value of the money? A. it stays the same B. it goes up C. it goes down
The answer incase you don’t know is C, when the market id flooded with dollars the value of the dollar goes down, and when the dollars goes down prices go up, because it takes more dollars to buy the goods. Look at oil prices today up over $100.00 dollars a barrel if oil is up prices at the pump will follow very soon and as prices rise so do goods that are transported so prices rise. Why is the world would anyone be happy over our dollar going down and prices going up?
LibertyWon
Posted on November 30, 2011 at 2:54pmWe aren’t starting the presses, we are placing our name on Europe’s loan extension through the use of swaps. Good article on Bloombergs this morning on how this is all supposed to work.
Report Post »Freedomtothink
Posted on November 30, 2011 at 4:54pmWe represent less than 5% of the worlds population. Everyone in the world is dependent upon the U.S. dollar in one way or another. If the U.S. goes out of business the world goes out of business. At some point people will understand that all fiat money is man made and created from bank debt. The rules of fiat money are created by the reserve banks and its value are whatever the reserve banks say it is. Scary isn’t it?
Report Post »mwhaley
Posted on November 30, 2011 at 12:37pmThis progressive scam is just about to be over. Bad thing is it is going to destroy the class that is sucking the system dry, the class that is constantly funding, and the elected officials that have been getting stealing from the system from the first day.
Report Post »762x51
Posted on November 30, 2011 at 12:20pmWhy would I , as a US taxpayer want to pay to bailout a bunch of useless layabouts who simply want to live on easy street? Americans are being taxed out of existence, what difference does the reason make? Whether it is bailout Greece, next Italy, via the IMF, next Ireland, Portugal, etc, etc., or to support our own over bloated, nanny state authoritarian Marxist government who have their OWN layabouts. The problem is the same, the outcome is the same. We need a complete reset of the United States back to our original Constitution and values and let rest of the world go suck an egg.
I will not comply with their laws or fund their bailouts, come try and take it from me. ΜΟΛΩΝ ΛΑΒΕ!
Report Post »hauschild
Posted on November 30, 2011 at 11:14amIt’s a frustrating time to invest. You can only invest in the market by timing the wild swings. You can’t invest in gold because the fed is tinkering with it. You can’t invest in anything safe because it pays nothing.
When considering the compounding effect of investing over time, it was always pretty certain that if you saved regularly and decently, you were good. How do these last 5 years of no growth and no compounding affect us long term? How many additional years might we have to remain employed to cover for something caused intentionally by the government?
I‘m frustrated because I can see what is transpiring and there ain’t a damned thing I can do about it.
Report Post »whatsupdoc
Posted on November 30, 2011 at 10:39amThe only way out for Europe and the U.S. is to print, print, print. Debase the currency and watch inflation rise and the dollar dive. The IMF is just another corrupt elitist organization that sucks from the U.S. taxpayers to prop up the worlds despots. Like the U.N. it is useless.
Report Post »LibertyWon
Posted on November 30, 2011 at 10:20amRemember all that cash Bernanke was not printing? I think he just went “ALL IN” on the Euro with that cash, and it was probably the plan to do so all along.
Report Post »Thevoice
Posted on November 30, 2011 at 10:12amSave, Fix , Bailout ..ease …..What …A Frenchman, Some Greek or other idiot getting four weeks vacation and his or hers health care paid for and a retirement at 55…No you can no longer ..AFFORD IT ..Great job Bernanke (dumbass) …More make believe 1′s and zeros …. why fight it …Hell lets just all go in the street and demand our New age progressive communist “Human rights” (sarcasm) ..and make Bernanke cover it ….This is like the FED is a north pole santa clause .Bringing boxes of cash for under the tree ..Nothing is for real any more …
Report Post »elosogrande
Posted on November 30, 2011 at 10:08amI don’t see any figures on how much this will cost the American Taxpayers. If it’s no more than $1.2 BILLION, tell Obama and Bernanke to get the money from their pal John Corzine.
If there is ever a real investigation of what happened at Goldman-Sachs, we may find out that Corzine had a lot to do with that failure too; but I doubt if Congress or The President want the facts to come out. We could find out where all the money really went, and that wouldn’t be good for our politicians or bureaucrats.
Report Post »lylejk
Posted on November 30, 2011 at 9:52amSmells like the FEDs going to print more dollars to try to save the Euro; only delaying the inevitable. The Euro’s going to die and may even take the dollar with it. Idiots. :)
Report Post »jakartaman
Posted on November 30, 2011 at 9:40amJust more can kicking to postpone the inevitable world economic collapse
Report Post »Sandy
Posted on November 30, 2011 at 9:38amWhat are our politicians doing to stop this? Where is the FED getting the money to do this? Can I print my money to pay off my debt? What’s the difference?
Report Post »hauschild
Posted on November 30, 2011 at 9:36amYou guys also time the rally??? I could see it coming from a mile away. It’s the third time now in a less than a year.
Odd – if all things and people were normal in this country, socialistic moves like this latest one would spell doom, but since half the people in this country have no problem – at all – with socialism, it’s seen as a boon. Crazy.
Report Post »Detroit paperboy
Posted on November 30, 2011 at 9:54am@Hauschild
Report Post »The fifty percent that have no problem with socialism, are on the freebie end of the deal……
NOBALONEY
Posted on November 30, 2011 at 9:13amThis morning is the beginning of mutually assured financial destruction. A worldwide effort to lower interest rates in an effort to pump in liquidity. QE times ????
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