Continue reading Rio Tinto - BHP Billiton joint venture could run afoul of Chinese law

Rio Tinto - BHP Billiton joint venture could run afoul of Chinese law originally appeared on BloggingStocks on Mon, 15 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Canaccord upgraded Rio Tinto (NYSE: RTP) to Buy from Hold citing valuation following the severe price decline following BHP Billiton's (NYSE: BHP) dropped bid.
• UBS upgraded Itron (NASDAQ: ITRI) to Buy from Neutral citing valuation and defensive business mix.
• Jefferies upgraded shares of HealthSouth (NYSE: HLS) to Buy from Hold on valuation and maintains a $13.50 target.
• Melco PBL Entertainment (NASDAQ: MPEL) was raised to buy from Neutral at Goldman.
• PG&E (NYSE: PCG) was upgraded at Merrill Lynch to Buy from Neutral.
• HSBC Holdings (NYSE: HBC) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

Continue reading Analyst calls: RTP, ITRI, HLS, BHP, BX, DT, UL, GPC, KND . . .

Analyst calls: RTP, ITRI, HLS, BHP, BX, DT, UL, GPC, KND . . . originally appeared on BloggingStocks on Wed, 26 Nov 2008 11:45:00 EST. Please see our terms for use of feeds.

Continue reading Global Q & A: Conserve your resources

Global Q & A: Conserve your resources originally appeared on BloggingStocks on Wed, 13 Aug 2008 17:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the discussions, the Wall Street Journal reported that Microsoft Corporation (NASDAQ: MSFT) has held discussions with Time Warner Inc (NYSE: TWX) and News Corporation (NYSE: NWS), among others, about joining it in a deal that could lead to the breakup of Yahoo! Inc (NASDAQ: YHOO). Some of the sources said the preliminary talks are unlikely to result in a deal with Yahoo!
• Johnson & Johnson (NYSE: JNJ) is reportedly in exclusive talks to sell its wound-care business Ethicon to the private-equity arm of JP Morgan Chase & Co (NYSE: JPM), according to the Wall Street Journal. Terms of the potential deal were not disclosed.

• Sources familiar with the inquiry said that the Justice Department has opened a formal antitrust investigation into a deal that would allow Google Inc (NASDAQ: GOOG) to provide some search advertising for Yahoo!. The Washington Post reported that investigators will demand documents from Google and Yahoo!, as well as other large companies in the media and Internet industries.

• Reuters reported that regulators in the European Union are looking at the long-term effects of BHP Billiton Limited's (NYSE: BHP) $170B bid for Rio Tinto Group (NYSE: RTP). Sources familiar with the EU questionnaire said regulators have asked competitors and customers about effects of the deal on their businesses through 2015.

Newspaper wrap-up: EU investigating the long-term implications of Rio Tinto deal originally appeared on BloggingStocks on Wed, 02 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Future crude oil supplies may be a lot tighter than thought. That is what the International Energy Agency in Paris is expected to find when it releases its assessment of the world's 400 major oil fields in November, according to the Wall Street Journal, a reversal from previous reports and is based on a lack of investment and aging oil fields.
• The Institute for Safe Medication Practices, a nonprofit safety organization, found serious side effects linked to Pfizer Inc's (NYSE: PFE) Chantix, a smoking cessation drug. Chantix, which has been banned by the FAA for use by pilots and air-traffic controllers, is already tied to psychiatric issues, including depression and suicide, according to the Wall Street Journal, and the report also points to heart trouble, seizures and diabetes.

• The New York Times reported that the Jacksonville Police and Fire Pension Fund has accused American International Group Inc (NYSE: AIG), along with several of its executives, of inflating its stock price artificially by understating the company's exposure to the subprime mortgage crisis. According to the lawsuit, AIG's Q1 loss of $7.8B shocked investors because the insurance giant assured them that any losses on credit insurance "would be limited".
• Following speculation a Chinese entity would look to take a stake in Australian miner BHP Billiton Limited (NYSE: BHP), Huang Tianwen, the president of Sinosteel Corp, said the company has not formed a bid for the firm. The Australian reported that Chinese steel mills may look to buy into iron ore miner Fortescue Metals Group.

Newspaper wrap-up: Pfizer's anti-smoking medicine under scrutiny originally appeared on BloggingStocks on Thu, 22 May 2008 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Earthquake recovery can change China

Cramer on BloggingStocks: Earthquake recovery can change China originally appeared on BloggingStocks on Wed, 14 May 2008 09:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that Ford Motor Company (NYSE: F) CEO Alan Mulally isn't done cost-cutting. According to people close to the situation, Mulally is considering more job cuts, selling its Volvo brand and closing the troubled Mercury brand.
• BHP Billiton Limited (NYSE: BHP) CEO Marius Kloppers strongly criticized Rio Tinto Plc (NYSE: RTP) and its CEO yesterday, the Financial Times reported. BHP Billiton has outperformed Rio Tinto in several areas, including share price appreciation and EPS growth, said Kloppers, adding, "On every metric I can envisage they [Rio] have been beaten."

• According to the Economic Times, AT&T Inc (NYSE: T) is reportedly in preliminary talks with Malaysia's Maxis Communications about buying its 74% stake in Indian cellular phone company Aircel, sources said.
• The United Auto Workers union has rejected several "generous" benefit and wage proposals, according to American Axle & Manufacturing Holdings Inc (NYSE: AXL). In a statement yesterday, the Detroit News reported that American Axle said while tentative agreements had been reached on several issues, the UAW "repeatedly rejected" other proposals that were "considerably higher than the market rate."

Newspaper wrap-up: BHP CEO lashes out at Rio Tinto originally appeared on BloggingStocks on Wed, 23 Apr 2008 08:37:00 EST. Please see our terms for use of feeds.

"A once in a lifetime super bull market in commodities is underway," note resource experts Mary Anne and Pamela Aden. Here, the advisors look at some favorite commodity stocks in their The Aden Forecast.

"Commodities are in a mega super rise is because of the dramatic changes in the global economy. The rise that started in commodities in 2001 has continued to expand over the years and we believe the upmove is just warming up and it has years to run.

"There are several reasons for this. The weakening dollar and low interest rates have certainly helped push up the whole sector while investment demand grew as an inflation hedge. But the key reason why the commodities are in a mega super rise is because of the dramatic changes in the global economy.

Continue reading Resource favorites from the Aden sisters

Resource favorites from the Aden sisters originally appeared on BloggingStocks on Mon, 21 Apr 2008 13:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Bernstein upgraded shares of BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) to Outperform from Market Perform as they believe urbanization in China will increase demand for metals.
  
• Prudential Financial (NYSE: PRU) was raised to Overweight from Underweight at Lehman as they believe the company's exposure to commercial mortgage-backed securities is limited.

• SL Green Realty (NYSE: SLG) and Brookfield Properties (NYSE: BPO) were upgraded at Credit Suisse to Neutral from Underperform.
  
• Yamana Gold (NYSE: AUY) was raised at UBS to Buy from Neutral.

Analyst upgrades: BHP, RTP and PRU originally appeared on BloggingStocks on Fri, 04 Apr 2008 10:50:00 EST. Please see our terms for use of feeds.

BHP Billiton (BHP) declares force majeure at Colombian mine originally appeared on BloggingStocks on Fri, 28 Mar 2008 13:17:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• To help stabilize the housing market, the Wall Street Journal reported that the Bush Administration is planning to help create fresh funding for mortgages. The plan, which still requires final approval, is said to ease an excess-capital requirement for government sponsored organizations Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac, and the Federal Housing Administration.
• The Wall Street Journal also reported that a merger between Northwest Airlines Corporation (NYSE: NWA) and Delta Air Lines Inc (NYSE: DAL) may be derailed after Delta pilots notified executives they remain unable to reach an agreement with Northwest pilots on how to integrate pilot ranks should the two combine.
• The Financial Times reported that BAE Systems Plc (OTC: BAESY) won a $715M order to supply nearly 1,500 mine-resistant vehicles from the U.S. government.

• The Chinese government has locked out Australian mining giants BHP Billiton Limited (NYSE: BHP) and Rio Tinto Plc (NYSE: RTP) from selling iron ore into its daily spot market, the Sydney Morning Herald reported. Mining sources said that the decision may have already cost Australia up to $300M in export profits.

Newspaper wrap-up: Bush plans more funds for mortgages originally appeared on BloggingStocks on Tue, 18 Mar 2008 09:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to sources, the Wall Street Journal reported that Countrywide Financial Corporation (NYSE: CFC) is under investigation for possible securities fraud. People close to the situation say the inquiry is in its early stages but it involves an inquiry into alleged misrepresentations of the company's financial position and the quality of its mortgage loans.
• The Financial Times reported that Credit Suisse Group (NYSE: CS) has teamed up with three leading academics to create products that will deal with the potentially lucrative hedge fund replication industry. The upcoming suite of products will attempt to mechanically replicate the returns of the major hedge fund strategies.

• Rio Tinto Plc (NYSE: RTP) is expected to announce this week that its aluminum business is worth up to $20B more than current estimates, after a rise in aluminum prices; the UK Times reported that the statement could raise pressure on BHP Billiton Limited (NYSE: BHP) to increase its takeover bid for Rio.
• Asset manager Ameriprise Financial Inc (NYSE: AMP) is pairing up with MasterCard Incorporated (NYSE: MA), the Associated Press reported, to become a credit card lender for the first time, the two companies reportedly plan to announce today.

Newspaper wrap-up: Countrywide Financial investigated by the FBI originally appeared on BloggingStocks on Mon, 10 Mar 2008 08:00:00 EST. Please see our terms for use of feeds.

BHP Billiton (NYSE: BHP) closed of $73.64 Thursday.

BHP announced on Feb. 6 the offer of 3.4 BHP shares per Rio Tinto (NYSE: RTP) to create the world's largest mining company.

BHP overall option implied volatility of 45 is near its 26-week average according to Track Data, suggesting non-directional risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: BHP Billiton volatility flat as it attempts to convince RTP of buyout originally appeared on BloggingStocks on Fri, 07 Mar 2008 10:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Mining companies BHP Billiton Limited (NYSE: BHP) and Rio Tinto Plc (NYSE: RTP) are not only competing over iron-ore customers, but they are not competing for investors as well, according to the Wall Street Journal's "Heard on the Street." BHP says 60% of their investors also own Rio shares; Rio puts the figure at 50%.
• Prices for the top 50 branded drugs increased an average of 6.73% in 2006 and 7.82% last year at wholesale, according to market research firm Delta Marketing Dynamics. Often targeted by politicians, pharmaceutical companies are undeterred, the Wall Street Journal reported.

• According to iSuppli sources, Apple Inc (NASDAQ: AAPL) has cut its 2008 NAND order forecast and informed suppliers that its demand growth will slow in 2008 vs. 2007.
• The Boeing Company (NYSE: BA) is considering suspending work on the short-range version of its 787 jet, the -3 shorthaul, in an attempt to get production of the long-range version, the long-range -8, back on track, Flight Blogger said.

Newspaper wrap-up: Boeing may suspend production on short-range 787 originally appeared on BloggingStocks on Thu, 21 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Battling Baidu.com Inc (NASDAQ: BIDU) in China with little success, Google Inc (NASDAQ: GOOG) is working with a Chinese company to offer free licensed music downloads, the Wall Street Journal reported. The new service is expected to be launched in several weeks.

• BHP Billiton Limited (NYSE: BHP) raised its bid for mining company Rio Tinto Plc (NYSE: RTP) to more than GBP70B. Meanwhile, the UK Times reported that Rio's new Chinese shareholder was preparing a counter bid for Rio.
• The Washington Post reported that Time Warner Inc (NYSE: TWX) CEO Jeffrey Bewkes is expected to announce a plan today to sell or spin off Time Warner Cable Inc (NYSE: TWC). Bewkes also is likely to signal plans to break up AOL in the coming year.

• Berkshire Hathaway Inc's (NYSE: BRK.A) Warren Buffett told Fox Business that he has no plans to bail out Ambac Financial Group Inc (NYSE: ABK) and MBIA Inc (NYSE: MBI).

Newspaper wrap-up: Time Warner likely to sell or spin off Time Warner Cable originally appeared on BloggingStocks on Wed, 06 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

Rio Tinto (NYSE: RTP), an international mining company, rejected a buyout proposal from BHP Billiton (NYSE: BHP), the world's largest mining company on November 6. BHP has until Feb. 6 to make a formal bid or walk away for at least six months, according to a U.K. takeover panel review.

Alcoa (NYSE: AA) and Aluminum Corp of China announced a 9% stake in RTP on February 1.

RTP overall option implied volatility of 64 is above its 26-week average of 53 according to Track Data, suggesting larger movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update 2-4-08: Rio Tinto volatility elevated into Feb. 6 BHP bid deadline originally appeared on BloggingStocks on Mon, 04 Feb 2008 10:20:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that U.S. and European antitrust regulators are expected to carefully scrutinize Microsoft Corporation's (NASDAQ: MSFT) $44.6B bid for Yahoo! Inc (NASDAQ: YHOO), which could possibly delay a completed deal for up six months.

• Google Inc (NASDAQ: GOOG) is seeking to torpedo Microsoft's bid for Yahoo!, sources reported. The New York Times said Google has offered to help Yahoo! defeat the bid by creating a partnership between the two search engine giants
• Aluminum Corporation of China, Chinalco, and Alcoa Inc (NYSE: AA) have teamed up to complicate BHP Billiton Limited's (NYSE: BHP) courtship of Rio Tinto Plc (NYSE: RTP), Globe and Mail reported.

• According to sources, Tech Crunch reported that News Corporation (NYSE: NWS) may be putting together a "syndicate" in order to make a counter offer for Yahoo!.

Newspaper wrap-up: Google looks to torpedo Microsoft's bid for Yahoo! originally appeared on BloggingStocks on Mon, 04 Feb 2008 08:45:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Australian resources firm BHP Billiton Limited (NYSE: BHP) is unlikely to up its $99.22B bid to acquire mining company Rio Tinto PLC (NYSE: RTP), according to the Wall Street Journal.
• Ten years after taking the reins at eBay Inc (NASDAQ: EBAY), CEO Meg Whitman is making plans to retire, reported the Wall Street Journal. Company president John Donahoe is the leading candidate to replace her.
• According to the Financial Times, Biogen Idec Incorporated (NASDAQ: BIIB) CEO Jim Mullen said the company could make a "large-scale acquisition" this year after it failed to sell itself.

• Finance companies including Citigroup Incorporated (NYSE: C) could sell proprietary investments in India as they struggle to shore up their capital after suffering losses in the subprime sector in the U.S., LiveMint.com reported.

Newspaper wrap-up: BHP unlikely to sweeten bid for Rio Tinto originally appeared on BloggingStocks on Tue, 22 Jan 2008 08:15:00 EST. Please see our terms for use of feeds.

Selling in Europe accelerated throughout the day. The fuel behind the drop appeared to be fear of a global slowdown and the impression that the Bush package to stimulate the economy would be too little, too late.

Watching the big markets in Europe left the impression of a simple and blind panic without a specific trigger. Investors simply wanted out, goaded by concerns that stocks have much further to fall. By the last hour of trading, the lemmings were running in force.

The German DAX was hit hardest, plunging 7.2% to 6,790. Shares in global mega-conglomerate Siemens (NYSE: SI) dropped 8.5%.

In the UK, the FTSE sold off 5.5% to 5,578. But there was real carnage among metal and mining companies. Both Rio Tinto (NYSE: RTP) and BHP Billiton (NYSE: BHP) dropped over 10%, killing over $25 billion in market cap. A recession would probably slow demand for commodities, driving the profits out of these companies. BHP has also talked about taking on tens of billions of dollars in debt to buy RTP. Such talk is not popular in times of tight credit.

The large banks in France, lead by BNP Paribas, fell through recent trading lows.

Hardly a single stock was spared.

Douglas A. McIntyre is an editor at 247wallst.com.

Europe sell-off ends badly; German DAX sinks 7.2% originally appeared on BloggingStocks on Mon, 21 Jan 2008 13:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to the Wall Street Journal's "Heard on the Street," bears believe it may be too early to bargain hunt among financial stocks, as they think there may be more bad news to come after Citigroup Incorporated (NYSE: C) announced it took an $18B write down in Q4.
• Analysts who follow China's telecom sector believe there are a few prime picks, including China Unicom Limited (NYSE: CHU) and China Mobile Limited (NYSE: CHL), but are advising investors to think long term, the Wall Street Journal reported.

• Iron ore talks with China's Baosteel have come to a halt after the company and its peers said price demands from miners BHP Billiton Limited (NYSE: BHP), Rio Tinto PLC (NYSE: RTP) and Companhia Vale do Rio Doce (NYSE: RIO) were "far too high," the Australian Financial Review said.

• MiningMx.com reported that BHP Billiton has reached an "impasse" with South Africa's government over the conversion of the company's exploration leases to new order mining rights.

Newspaper wrap-up: More bad news to come for financial stocks? originally appeared on BloggingStocks on Wed, 16 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.