Tuesday, February 5, 2013

Non-Manufacturing Sector Activity Weakens U.S.

Non-Manufacturing Sector Activity Weakens U.S.
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Weak U.S. economic growth momentum seems to have reduced activity in the non-manufacturing sector beginning in 2013. The non-manufacturing index fell to 55.2 for the month of January; according to predictions but lower than previous publications 55.7. However, the data still above the level of 50 that signaled the continued expansion of non-manufacturing sector. Please register with the data only a slight decline then this would provide additional evidence would still need loose monetary policy from the Federal Reserve. Dow Jones futures still maintain momentum gains after the data was released. Dow is now trading 13 942, away from the daily low of 13,830.

Adding MasterCard Plans 'Buyback'

MasterCard Inc. on Tuesday announced a plan to increase the buyback program worth $ 2 billion for the shares of class 'A', as well as doubling its quarterly dividend to further reward shareholders. MasterCard, which helps banks and merchants to provide payment card, last week reported a surge in fourth-quarter profit as the increasing use of the card. It is quite surprising given the poor global economic conditions amid haunting consumer confidence.

Additional buyback plan itself will be effectively applied after the program $ 1.5 billion stock buyback earlier, that still leaves about $ 440 million, resolved. As for the payment of dividends, on 9 May MasterCard will pay 60 cents to shareholders of a class 'A' and 'B' were recorded until 9 April. The amount is 2 times of payment of a dividend of 30 cents on the 8th February. MasterCard stock is currently trading at around $ 520.90, or about 1.3% above the closing price yesterday.

Oil Soar Over Europe Easing Anxiety

U.S. crude oil futures rose to a level of $ 96.78 per barrel on Tuesday continue the rally that has taken place in three weeks as concerns investors against political risks in Europe have eased. The single currency and regional stock markets also rose after the PMI data reported successful beyond expectations. Meanwhile, shares of oil & gas company British Petroleum gained 1.7 percent after reporting earnings above rate estimates. Another positive catalyst for oil diminishing the risk of oil supply as OPEC member countries decreased production combined with the bright outlook for the global economy which indicates an increase in demand for petroleum energy.

Global oil supply from OPEC in particular expected to continue throughout 2013, while the conflict in Syria and Iran's tensions with the West over its nuclear program remains a risk in addition to the reduction in oil supply from the Middle East. Furthermore, market participants will await U.S. oil inventory report is expected from an increase of 2.8 million barrels. API industry group will issue a report Tuesday stockpiles of oil reserves, while the EIA reported crude oil inventories will be released on Wednesday.

Dell Company Will Be Closed

The consortium, led by founder and CEO Michael Dell has agreed a deal to create a leading computer manufacturer is a firm covered. Dell shareholders will receive cash of $ 13.65 for each share owned Dell. The price is not much different from the last trading price of $ 13.40 on Dell. Deal worth $ 24.4 billion leveraged buyout is the largest since the 2008 financial crisis. Microsoft and private equity firm Silver Lake Partners is a principal member of a consortium with the contribution of each investment to reach $ 2 billion and 1 billion. Michael Dell also plans to sell 16% stake owned Dell and will put his personal funds as part of the deal. Michael Dell will remain as CEO.

Coca-Cola As much as 25% Dividend Increase

Coca-Cola Enterprises Inc.. on Tuesday increased its quarterly dividend by 25%, which marks the sixth annual increase in a row, in an effort to better appreciate their shareholders. Coca-Cola's quarterly dividend increase to 20 cents from 16 cents previously, which will incur additional costs of approximately $ 115 million per year. This soft drink producer in December had forecast if the Council will raise dividends at least 15% by 2013. At the same Coca-Cola also announced a program of buying back shares worth $ 1.5 billion, $ 500 million of which will be done this year.

Coca-Cola Enterprises continues to grapple with higher taxes in France, a competitive shopping in the UK and the negative impact of currency exchange rates. Economic difficulties in Western Europe also helped bring the threat to demand their soft drink products. Currently, Coca-Cola shares at about 0.05% higher at $ 37.90 range. Coca-Cola shares have gained 26% recorded last year.

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