US stocks fall on Iraq worries

Specialist Jarret Johnson, center, and a colleague study their screens as they work on the floor of the New York Stock Exchange, Thursday, Aug. 7, 2014. Stocks are ending lower as investors worry about slowing global economic growth and simmering tensions between Russia and the West over Ukraine. The Dow Jones industrial average fell 75 points, or 0.5 percent, to close at 16,368. AP PHOTO/RICHARD DREW

NEW YORK–US stocks finished lower Thursday as advances by jihadists in Iraq trumped encouraging labor-market data and spurred talk of possible military action by the US.

The Dow Jones Industrial Average dropped 75.07 points (0.46 percent) at 16,368.27.

The broad-based S&P 500 fell 10.67 (0.56 percent) to 1,909.57, while the tech-rich Nasdaq Composite Index lost 20.08 (0.46 percent) at 4,334.97.

Brent Schutte, market strategist at BMO Global Asset Management, said Thursday’s losses on Wall Street were “completely” due to a sharp worsening of conditions in Iraq.

Jihadists seized Qaraqosh, Iraq’s largest Christian town, sending tens of thousands of panicked residents fleeing in one of the most dramatic developments of the two month-old conflict.

US officials are reportedly considering air strikes in response to what the White House called a possible “humanitarian catastrophe.”

Schutte said the Iraq news overshadowed a large decline in US jobless claims.

“The Iraq situation has taken a turn probably for the worse,” Schutte said. “The US is potentially going to get more involved because that Islamist group keeps making gains.”

Entertainment giant 21st Century Fox rose 4.5 percent as earnings of 42 cents per share surpassed expectations by three cents on strong ticket sales for its X-Men blockbuster and other big movies.

Netflix jumped 4.5 percent as the company passed HBO in subscriber revenue last quarter in what chief executive Reed Hastings called a “minor milestone.”

Solar energy company SunEdison soared 11.8 percent higher as it reported adjusted profits of 12 cents per share, against a 28 cent loss projected by analysts.

Stratasys, which manufactures 3D printers, jumped 14.9 percent after reporting earnings of 55 cents per share, 10 cents more than analysts expected. The company also raised its profit forecast on stronger sales.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.42 percent from 2.47 percent Wednesday, while the 30-year dropped to 3.23 percent from 3.28 percent. Bond prices and yields move inversely.

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‘Bingo Milyonaryo’ earned only P30M

MANILA, Philippines–Bingo Milyonaryo (BM), a lottery-like game run by the Philippine Charity Sweepstakes Office (PCSO), has earned only between P25 and P30 million three months before its yearlong test run ends, the general manager of the agency told lawmakers on Thursday.

Jose Ferdinand Rojas II told the House committee on appropriations that the PCSO would determine by November whether or not to terminate the controversial game, which was allegedly being used as a front for illegal numbers games like “jueteng” and “masiao.”

“The earnings have not been much… only about P25 million to P30 million,” Rojas said in reply to a question by Alliance of Concerned Teachers Rep. Antonio Tinio during committee deliberations for the proposed 2015 budget.

“Bingo Milyonaryo is expiring by November, and right now we’re looking into its feasibility and viability, based on sales… and based on reports of our branch offices,” he added.

BM is a lottery-like game that offers gamers five ways to win in one draw.

Interior Secretary Mar Roxas earlier said he had been asked by President Aquino to look into the game, which resembled small-town lottery. Aquino then reportedly castigated former PCSO chair Margarita Juico, who was prompted to resign, for her refusal to cooperate with Roxas in the probe.

BM is operated in 33 franchise areas nationwide by Comnet Management Corp., an information technology company with purported links to former Philippine Long Distance Telephone Co. (PLDT) chair Antonio “Tonyboy” Cojuangco, a second cousin of Aquino.

Asked about this, Rojas said he was not personally aware of the connection. “He’s (Cojuangco) not in the incorporation papers.”

He explained that the BM project was moved to the PCSO from the Philippine Gaming and Amusement Corp. (Pagcor) through a government-to-government transfer.

“Pagcor wants to concentrate more on table games, while we want to focus on mass-based games, so we accepted this from Pagcor,” Rojas told the panel.

Comnet first obtained a five-year contract to operate BM in November 2009, from then Pagcor chair Efraim Genuino. It started operations in February 2010.

“Then it was transferred to us in December of 2012, then we had a soft launch in November. Then it’s expiring in November this year,” Rojas said.

He also confirmed earlier reports that Comnet was receiving almost 20 percent of proceeds from BM sales.

“Ten percent goes directly to them, five percent goes to their sales agents and distributors, and another percentage goes to printing costs, so total of probably almost 20 percent but that already includes agents’ commissions,” Rojas said.

He acknowledged but did not specify “defects and flaws” in the operation of BM.

“By November we will know if we will decide to terminate or continue. We’ll take into accounts all reports, committee recommendations, and our sales targets,” Rojas said.

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PLDT buys into German Internet developer

Agence France-Presse

7:03 pm | Thursday, August 7th, 2014

SCREENGRAB from www.pldt.com

MANILA, Philippines—Philippine Long Distance Telephone Co. (PLDT), the country’s leading telecoms provider, said Thursday it was buying a 10-percent share in German Internet developer Rocket Internet for 333 million euros ($445 million).

The partnership will allow the two companies to “jointly develop mobile and online payment technologies and services in emerging markets,” a PLDT statement said.

“The strategic partnership will allow us to leverage our combined strengths in developing online and mobile payment solutions in emerging markets,” PLDT president Napoleon Nazareno was quoted as saying.

PLDT cited its “experience and intellectual property in mobile payments and remittance platforms”, often used by the many Filipinos working abroad to send money back home.

It also cited the Berlin-based Rocket’s ability “to provide products and services for the ‘unbanked, uncarded and unconnected’ population in emerging markets”.

The investment will entitle PLDT to one seat on Rocket’s nine-member supervisory board the statement said, adding that the investment would be sourced from available cash and new debt.

Rocket bills itself as the world’s largest Internet platform outside of China and the United States, with a strong presence in Europe, Latin America, Russia, India, Africa and the Middle East.

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Keep Your Eye On First Solar, Inc. (NASDAQ:FSLR) Today

One interesting stock to keep your eye on today is First Solar, Inc. (NASDAQ:FSLR), which broke over a long-term downtrend line in October 2013 and has been moving sideways, but slowly inching upwards nonetheless.

Today's market action in this stock is going to be important because if it closes towards the highs of the day, somewhere around $64.00 as of this writing, a Japanese candlestick "morning star" formation will be created. This can be a strong indication of a reversal to the upside.

This stock has also made a double bottom at $60.75 and again at $62.58. On both the monthly and weekly charts, the RSI level remains above 50, indicating that the longer term uptrend is still intact. This coincides with the monthly Trade Triangle, which remains green and positive.

Conservatively you may want to just wait until the green weekly Trade Triangle kicks in. This will confirm that the intermediate-term trend is now inline with the positive trend of the monthly green Trade Triangle.

Another way to play the stock is to wait for the daily RSI to cross into the +50 zone. This could also be an indication of momentum to the upside.

Should First Solar, Inc. (NASDAQ:FSLR) close today at or close to its highs, it would confirm the "morning star" setup.

My initial upside target zone for this stock is $100. Should you decide to trade in the stock of First Solar, you should, of course, use money management stops. You can read more about protecting your capital and money management here.

I have a feeling this is going to be an interesting week.

Every success with MarketClub,

Adam Hewison

President, INO.com

Co-Creator, MarketClub

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Euro slips in Asia on European concern

Agence France-Presse

10:50 am | Monday, August 4th, 2014

AP FILE PHOTO

TOKYO – The euro slipped in Asia Monday following news of a bailout for a crisis-hit Portuguese bank, while the dollar held steady.

The common European currency slipped after Portugal’s central bank announced the nation will inject 4.4 billion euros ($5.9 billion) into the Banco Espirito Santo (BES).

The euro bought $1.3418 and 137.75 yen in Asia on Monday against $1.3430 and 137.78 yen in US trade late Friday.

The dollar was at 102.65 yen compared with 102.60 yen in New York on Friday.

The dollar slipped on Friday after the US jobs data for July turned out to be solid but not strong enough to boost inflation expectations.

Stocks were lackluster Monday, weighed down by concerns over the impact of stricter sanctions on Russia on European economies and the situation surrounding the BES, said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.

“European risk is having an impact on the broader market,” Okumura told Dow Jones Newswires.

BES will be split into two entities, with its toxic assets isolated and its healthier assets regrouped in a new Novo Banco, national bank governor Carlos Costa said late Sunday.

Novo Banco will be controlled by the Resolution Fund set up by Portugal’s banks as part of the conditions for a 2012 national bailout by the troika of the EU, IMF and European Central Bank (ECB).

The market focus has shifted to a monthly meeting Thursday of the ECB although it is widely expected to hold its fire despite a lingering threat of eurozone deflation and geopolitical risks.

“The ECB might be enjoying a summer lull, eventually, with no hints of new action expected” at the upcoming meeting, Credit Agricole said in a note.

The Bank of Japan (BoJ) is also scheduled to hold a two-day policy meeting later this week.

“The upcoming BoJ meeting is unlikely to result in any changes in policy. However, policymakers will have to outline their strategy for 2015 before too long,” Capital Economics said.

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Mogul Packer buys Las Vegas casino site

This photo taken on July 2, 2014 shows constuction work going on at Australian mogul James Packer’s new Aus$1.5 billion ($1.4 billion) Sydney casino in a prime location on Sydney Harbour. Billionaire Packer, who runs Crown, a worldwide gambling empire has been given the green light late on July 8, 2014 by the state gaming regulator taking it one step closer to winning final approval to be awarded a 99-year gaming licence and could start operating from November 15, 2019. AFP PHOTO/Peter PARKS

SYDNEY – Australian mogul James Packer’s Crown Resorts has paid Aus$280 million (US$260 million) for a prime site on Las Vegas Boulevard in a bid to crack the American casino market, the company said Monday.

The billionaire, who runs Crown – a worldwide gambling empire – has teamed up with former Wynn Las Vegas president Andrew Pascal in a joint venture, backed by Oaktree Capital Management.

The new resort company, which is majority-owned by Crown, has bought a controlling interest in a 34.6-acre vacant site on the world-famous gambling strip formerly occupied by the New Frontier casino.

“You can’t be in the gaming industry and not have a special reverence for Las Vegas- that’s where it all began,” said Packer, who is co-chairman of the new venture.

“As we have built Crown Resorts into a thriving international company with successful casino ventures in Australia, Macau, and London, we’ve always kept our eye on Las Vegas.

“And while we fell short in past attempts to enter that market, we now have the ideal opportunity with a great local partner in Andrew, a leading financial investor in Oaktree, and the perfect piece of property.”

The new resort company hopes to start development in late 2015 and complete the project in 2018.

“For over 25 years, I’ve studied the ever shifting Las Vegas landscape,” said Pascal, the other co-chairman.

“I’ve always been inspired by this city’s capacity for reinvention. I’m excited to have my hand in crafting something new and fresh for the resurgent Las Vegas market.”

Packer, the son of late media baron Kerry Packer, is one of Australia’s wealthiest people, with a personal fortune estimated at Aus$7.2 billion.

As well as casinos in Melbourne, Perth, Macau and London, he is also planning one in Sydney and has his eye on the Japanese market.

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Mighty Corp. takes rivals head on, introduces 2 premium brands

MANILA, Philippines–Expect competition in the local tobacco industry to heat up.

Mighty Corp., the oldest Filipino-owned tobacco company, has launched its premium brands King and Chelsea in a bid to firm up its position as the country’s second-biggest cigarette manufacturer.

“Our decision to enter the premium brand segment is part of the company’s thrust to reposition our brands and expand our reach into all segments of the market,” Oscar P. Barrientos, Mighty executive vice president, said.

“We hope to extend the reach of Mighty Corp. and strengthen our position as the top Filipino-owned tobacco company in the Philippines,” Barrientos added.

He said that both brands are premium in terms of smoke character. “But from the packaging and cigarette design, King is more traditional while Chelsea radiates unconventionality,” he explained.

The two premium brands are blended with the finest tobacco grades to give off a balanced taste and aroma. Both come in full flavor king size, lights king size and menthol 100s or a total of six different variants.

“One of our advantages is the smell, flavor and aromatic taste of our cigarettes that are also exceptionally smooth, mellow and attractively packaged,” Barrientos, a retired RTC judge, said.

Mighty’s premium brands will be categorized in the highest tax bracket for cigarettes.

“Our decision to expand our product lines is just part of our vision to become a major player in the market and show what a Filipino company can do,” Barrientos said.

The company was established in 1945 by businessman Wong Chu King with a small factory in Manila producing native cigarettes known as “Matamis.”

The company was renamed Mighty Corp. in 1985 and bought the trademarks of Alhambra Industries in 1993. It now operates a nine-hectare fully integrated manufacturing and processing plant in Malolos, Bulacan.

Mighty Corp. was able to build up its market share through an aggressive marketing push and heavy investments in research, development and production.

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