S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Investing

What’s Important in the Financial World (2/10/2012) China’s Imports, Google Home Entertainment

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
China’s imports number fell more than expected, another sign that an economy that grew at 10% or more per year for a decade has moved into a recession of sorts. Exports decreased 0.5% and imports fell 15.3% from a year earlier in January. The overall trade surplus was $27.3 billion. The International Monetary Fund reported last week that its forecast of 8.4% GDP growth in China this year could be much too high. That number could drop by four full points if trouble in Europe grows. And it has. Greece recently said its unemployment rate reached nearly 21%. The number is already higher than than in Spain. Several of the eurozone’s southern countries have admitted that they are in new recessions. China may have begun to import less because it does not need raw materials for its factories and its new middle class is concerned about its economic future.

Still No Greek Deal

The situation with Greece’s debt, which seemed better for a few hours as its leader met with European Union, European Central Bank and IMF officials in Brussels, is bad again. It appeared that those three groups would release the money Greece needs to cover its March obligations so as not to default. But that capital comes with strict restrictions, and the Greeks may be unable to accommodate them. Greece has to show its financiers that planned austerity programs are well underway and that all of the political powers in the country have endorsed them. That broad political endorsement is by no means assured as leaders jockey for the approval of sullen voters who believe austerity measures have gone too far.

Google Home Entertainment

Rumors have started to spread across the tech world that Google (NASDAQ: GOOG) will release a home entertainment system that can stream music throughout people’s homes. The press has speculated that the world’s largest search company believes it can follow Apple (NASDAQ: AAPL) into the hardware business. Apple is widely admired for its ability to marry devices with apps and entertainment. Google has started down the path of hardware integration with it purchase of handset firm Motorola (NYSE: MMI). Google may find the going rough, though. Most hardware companies have very modest margins, or make no money at all, as companies that make products to compete with the iPhone and iPad have already discovered.

Additional Job Cuts

PepsiCo (NYSE: PEP) and Alcatel-Lucent (NYSE: ALU) are the latest multinationals to “reorganize” their businesses for the future. At Alcatel this means a cut of 1,800 people. At Pepsi it means dropping 8,700 workers. These restructurings are presented to investors and the press as ways to drive efficiency and margins. A look below the surface at most companies that take this path reveals that sales have faltered and management needs a way to show investors that they can make even modest returns.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

What’s Important in the Financial World (11/1/2012)

ThinkstockMore of the Same from Sony Sony Corp. (NYSE: SNE) managed to maintain its habit of posting quarterly losses. In…

Douglas A. McIntyre |

Greeks Say “I Don’t Pay”

CNBC points out that polls in Greece show an increase in an “I Don’t Pay” movement. Greek citizens cannot do…

Douglas A. McIntyre |

Media Digest (2/10/2012) Reuters, WSJ, NYT, FT

The U.S. and state attorneys general reach a $25 billion settlement with five banks over mortgage abuses. (Reuters) The Hong…

Douglas A. McIntyre |

What’s Important in the Financial World (11/12/2012)

ThinkstockMore Greek Troubles As hard as it seems to be to believe, the crisis in Greece continues, and may have…

Douglas A. McIntyre |

What’s Important in the Financial World (11/6/2012)

ThinkstockBye-Bye Suzuki American Suzuki will leave the U.S. market, a victim of small sales and a brand that U.S. car…

Douglas A. McIntyre |

What’s Important in the Financial World (11/20/2012)

courtesy of Hostess Brands Inc.Twinkies Hoarders Disappointed Some Americans hoarded all the Hostess Twinkies they could find once the company…

Douglas A. McIntyre |

What’s Important in the Financial World (5/14/2012) Greek Elections, “The Avengers”

Coalition talks in Greece have broken down and are not likely to resume. This means new elections are almost inevitable.…

Douglas A. McIntyre |

Media Digest (5/21/2012) Reuters, WSJ, Financial Times

Alibaba buys back a 20% share held by Yahoo! (NASDAQ: YHOO) for a combination of cash and preferred shares worth $7.1…

Douglas A. McIntyre |

Games Of “Deficit Chicken” Hit US And Greece

The US government and Greece each need money, though direct comparisons made between the southern European nation and America are…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820