VeriFone Systems, Inc. (PAY) recently inked an agreement with Austrian company PayLife to install new VeriFone VX 680 wireless solution and VX 825 PIN acceptance system to upgrade or replace the existing systems for monetary transactions. VeriFone provides electronic payment system solutions for the financial, retail, hospitality, petroleum, transportation, government and health care markets. […]
Archives for November 2012
November 2012 - Page 9 of 20 - Money Morning - Only the News You Can Profit From
When I Saw This "Bionic Skin", All I Could Say Was "Wow"
An entirely new class of human beings is about to roam the Earth.
In fact, scientists have just scored a major breakthrough that brings us much closer to the day of bionics.
Quite simply, bionics is the name I use for biological members of our species who have any number of high-tech "upgrades"-not too much different from what "Steve Austin" famously received in the 70's.
With the technology we have today, these could include neural implants that combat brain disease, sensors embedded in your eyes, and a heart grown from synthetic cells.
And now these people can even have artificial skin, too, if they need it.
This breakthrough comes from Stanford University. When I came across it, all I could say was "Wow"…
Weak French Economy Threatens Anxious Eurozone
Fears that the socialist policies of French President François Hollande would make a weak French economy worse appear now to have been well-founded.
France announced Thursday that growth for the third quarter was a mere 0.2%. The French economy shrank 0.1% in the previous quarter, and most economists expect that contraction to resume in the current quarter.
Meanwhile, unemployment has risen to 10.2%, its highest level in 13 years.
Since Hollande won the French presidential elections in May, he has increased the minimum wage, lowered the retirement age for some workers (which his predecessor has just raised in an attempt to reduce government costs), created tens of thousands of education jobs and, of course, announced big tax increases.
But instead of reviving the weak French economy as Hollande promised, all indications are that his policies are making a French recession in 2013 more likely.
"The third quarter is probably the result of a temporary rebound at the European level," Michel Martinez, an economist at Societe Generale in Paris told Bloomberg News. He added that business sentiment indicates France's "economy is heading to a moderate recession or at best remaining flat."
To continue reading, please click here...
Why China Is a Key Reason to Be Investing in Gold
Recently, a major event was held that sent a signal to anyone interested in investing in gold.
For the first time ever, the London Bullion Metal Association (LBMA) held its annual meeting in Hong Kong. It is a trade group that represents the wholesale market for gold and silver and it's telling that it decided to have its meeting in Hong Kong.
However, the site choice should not come as a surprise to anyone following the gold market. China has become more and more important to the gold market. The Asian giant's imports of the shiny yellow metal have become a key factor in gold's positive price performance over the last few years.
Investing in Gold: China's Role
Bullion demand from China has soared in the past several years.
In 2007, China accounted for just 10% of global gold demand. By 2011, China was responsible for 21% of global gold demand. This trend can easily be seen in figures from the World Gold Council (WGC). It said gold demand in China has risen from about 250 tons in 2006 to almost 800 tons presently.
What the WGC numbers don't tell you about though is how China's central bank, the People's Bank of China, is buying gold. Gold imports into China via Hong Kong (the route the central bank uses) has continued to rise rapidly despite a dip recently in gold buying by Chinese consumers.
Hong Kong has seen on average about 65 tons in gross imports of gold per month. Year-to-date China has imported an astounding 582 tons of gold, more than the official holdings of another country well known for loving gold, India.
It is not shocking that the Chinese central bank is trying to get its hands on large amounts of the precious metal.
As David Gornall, chairman of the LBMA, told the conference "The country [China] has only 2 percent of its reserves in the form of gold." He added "that allocation can only go in one direction."
To continue reading, please click here...
Why to Expect Higher Silver Prices Before 2013
As the week comes to an end, Comex December silver prices are trading at $32.45, a slight decline from yesterday. For the week, prices are off about 1%.
Recent economic data and concerning news from abroad have hit precious metals this week, leading to their declines.
Gold has been stealing headlines as fear surrounding the fiscal cliff drives investors to seek safer assets. Should Congress and the president not reach an agreement by early next year, this will provide an opportunity for gold to shine.
But the white metal, with its volatility and recent high prices, can hold its own and also has the potential to increase in the short-term due to a few reasons.
To continue reading, please click here...
Keystone Oil Pipeline Decision Key to Obama's Energy Policy
One of the major policy decisions facing U.S. President Barack Obama is whether or not to approve the Keystone oil pipeline across the Canadian border into the United States.
If approved, the pipeline – to be built by TransCanada (NYSE: TRP) – would transport about 1.3 million barrels of oil a day from Canada's oil sands to refineries along the Gulf coast.
The Keystone oil pipeline, if approved, would benefit U.S. energy security. Not to mention TransCanada and players in the Canadian oil sands industry such as Suncor Energy (NYSE: SU).
This decision is one investors in the energy sector need to pay attention to as it will set the tone for energy policy in President Obama's second term.
Why China's Buying Gold
With gold prices on track to log a 12th consecutive annual gain, China is beginning to take a fresh shine to the yellow metal.
Now China's buying gold in an attempt to play catch up with the United States and other influential nations, the London Bullion Market Association reports.
At a recent conference in Hong Kong, Chairman David Gornall told the association's conference, "When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction. The country has only 2% of its reserves in the form of gold compared with the U.S. at 75%."
Other developed countries, including Germany, Italy and France, maintain a gold reserve in excess of 70%. Meanwhile, China's share lags, data from the World Gold Council reveals, trailing at a paltry 2%.
Since 2009, The People's Bank of China has not disclosed any changes to its gold holdings. At that time, the bank noted its stash had risen by 76% to some 1,054 tons. Its cache is set to swell again as the country, facing an economic slowdown from a plethora of lethargic international markets, gets defensive.
The spike in gold imports to China, via Hong Kong, reveals new significant accumulations of the commodity. Chinese imports of the precious metal totaled 69.7 metric tons in September, a striking 22% increase from a year ago.
To continue reading, please click here...
Hostess Brands Shutdown Highlights Looming Pension Crisis
Hostess Brands, the closely held maker of Twinkies, Hostess Cupcakes, Ho-Hos, Drake's Cakes and Wonder Bread, has announced that it will shut down all operations beginning today and liquidate the company's assets as soon as it receives permission from the bankruptcy court.
Hostess, which is in bankruptcy for the second time since 2004 and is now owned by a group of financial firms led by two hedge funds, had issued an ultimatum to striking bakers: Call off the strike by 5:00 p.m. Thursday or the company will be shut down. The strike persisted and the closure was announced Friday morning.
The Hostess Brands shutdown will mean the loss of 18,500 jobs nationwide. Hostess Brands operated 33 bakeries, 565 distribution centers and 570 outlet stores.
"There's no way to soften the fact that this will hurt every Hostess Brands employee," CEO Gregory Rayburn said in a letter to employees. "All Hostess Brands employees will eventually lose their jobs – some sooner than others."
But the problems at Hostess go way beyond the company and its employees.
In fact, they're part of a national issue that undermines the entire U.S. economy.
To continue reading, please click here...
Stock Market Today: As Fiscal Cliff Talks Begin, Stocks Reel in Fear
The stock market today opened lower on the first day of official fiscal cliff negotiations. The markets have been pressured down all week by worries that no deal will be reached, with both the Dow Jones and the S&P 500 losing over 2.5%.
Not even a new report claiming that White House officials are in advanced talks to replace the sequester cuts could lift the market today.
- Fiscal cliff deal could be close- As the president meets with Congressional leaders today, there is a new report out hinting that a deal involving partially going off the fiscal cliff is in the works. The Wall Street Journal reported today (Friday) that White House officials have discussed a plan where smaller spending cuts and fewer tax increases would be made. The idea is to postpone the majority of the cliff and have "targeted" cuts and tax increases. Basically this would delay making tough decisions on the deficit, including actually making major spending cuts, overhauling the tax code, and restructuring Medicare, Medicaid, and Social Security. Instead of kicking the can down the road again, going off the fiscal cliff is something that Money Morning Global Investing Strategist Martin Hutchinson thinks is a good idea. On going off the cliff he says, "Contrary to all of the media caterwauling, that's not a dreadful fate. In fact, it is exactly what we ought to be doing, since it solves 77% of the deficit problem in one fell swoop." To see his full column, click here.
- Strike pushes Hostess Brands into bankruptcy- In what may be the saddest economic news of the day, Hostess, maker of Twinkies, Devil Dogs, Ho Ho's and Wonder Bread, announced it's going bankrupt. The Irving, TX-based company said that the closing was a result of a nationwide strike and that nearly all of the 18,500 workers will lose their jobs as the company shuts down 33 bakeries, 565 distribution centers, and 570 outlet stores nationwide. "Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said in a letter to employees posted on the company website." The company said it will try to sell its snack cake and bread business with the hope of reviving such brands as Twinkie, Wonder Bread, and a few others.
To continue reading, please click here...
Fiscal Cliff 2013: Pay Now or Pay Later
For all the talk about how Congress needs to avoid the fiscal cliff, few have pointed out that the U.S. economy will suffer regardless.
The only question is the timing.
If Congress fails to act and America goes over the fiscal cliff on Jan. 1, 2013, the U.S. economy will, as many have noted, quickly slip into a recession.
But if Congress does somehow agree to avert all or most of the impact of the fiscal cliff, it simply postpones the pain for a few months or years.
And if Congress elects to postpone the fiscal cliff indefinitely, choosing to continue the federal government's massive deficit spending in perpetuity, the federal debt will weigh more and more heavily on U.S. economic growth as the years go on.
"That highlights lawmakers' dilemma," wrote The Wall Street Journal in a recent editorial. "Going off the cliff will produce great pain in 2013 but lead to a more stable fiscal situation a decade on. Averting it will forestall recession now but hamstring growth later."
How Fiscal Cliff 2013 Affects U.S. Economy
The fiscal cliff is political shorthand for the combination of spending cuts and tax increases scheduled to hit Jan. 1, 2013. It's the result of the expiration of the President Bush-era tax cuts combined with $1.2 trillion in automatic reductions in federal spending made last summer as part of the deal to raise the debt ceiling.
The consequences of going over the fiscal cliff or delaying it can be found in the latest report on the matter from the Congressional Budget Office (CBO), "Economic Effects of Policies Contributing to Fiscal Tightening in 2013."
And this latest report, which is different than the previous CBO projections, actually includes a clue as to how Congress could decide to deal with the fiscal cliff before the end of the year…
To continue reading, please click here...