Odds & Ends 10/11/07

Holding pattern... The BOJ Bank of Japan voted 8-1 to hold its interest rate at 0.50%, with Mizuno dissenting.

Sales down... Mediocre same store sales reports from retailers.Wal Mart reported lower than expected same store sales, but raised Q3 earnings guidance.

Target expects that full year EPS will be lower than the consensus estimate.

Lower dollar, no Coke... Pepsi Q3 revenue and earnings per share rose by 11%, aided by favorable currency translation.

No "carry over" the border... Like the Japanese Yen, the Swiss Franc is a major "carry trade" currency.

Retailers in Switzerland are reporting rising earnings while sales are down at German retailers along the Swiss border.

The reason: Many Swiss customers are nowhere to be found, its just too expensive.

The franc's 4 year slide against the euro -13% since the start of 2003 has the Swiss cutting back on the $1.7 billion they spend.

Chinese Cook Books... China's 4th largest bank, Agricultural Bank of China, saddled with $100 billion of bad loans...

may move some of its 14,500 rural branches to independent companies to speed up a government bailout and sell shares for the first time.

Agricultural Bank's cleanup has been delayed because 23% of its loans aren't getting paid, according to its latest annual report.

China has spent about $500 billion bailing out its biggest lenders over the past decade.

The three largest, Industrial & Commercial Bank of China, Bank of China, and China Construction Bank Corp...

raised a combined $53 billion selling shares in the past two years to foreign investors.

Sally Suey... SLM Corp. commonly known as Sallie Mae, posted a loss in Q3, due to losses on derivative and hedging activities during the period.

For its most recent quarter, Sallie Mae reported a net loss of $344 million vs year ago profit of $263 million.

Countrywide Foreclosings Up...

the largest U.S. mortgage company, said late payments at its servicing unit rose, foreclosures doubled 1.27% from 0.51%. and new loans fell 44%.

Countrywide's servicing portfolio of $1.46 trillion, is almost 15% of total U.S. home-loan debt.

Comments

Mark said…
Welcome back from vacation, o Nattering One! Hope it was a good one. You were missed by one person at the minimum.

Dow is below 14k today. Time for another 50bp cut? ;)
Mr. Naybob said…
Thank you Spudman. I suspect no cut, which would result in a big dip. But what do I know?

In any event, I will mount & straddle with trigger finger ready upon announcement.