Despite its association with something everyone hates, Hormel’s lunchmeat has not only survived, it’s thrived
BusinessWeek.com — Top News
S&P on track for 5th straight day of losses
PARIS (Reuters) – U.S. stock index futures pointed to a higher open on Wall Street on Thursday, with futures for the S&P 500 up 0.25 percent, Dow Jones futures up 0.25 percent and Nasdaq 100 futures up 0.29 percent at 4:09 a.m. EDT.
European stocks were down 0.4 percent in morning trade while the euro hovered near four-month lows as investors shunned risky assets, rattled by Greece’s escalating crisis and fears of contagion to other stressed euro zone economies.
Limited Brands Inc will be in focus after the parent of the Victoria’s Secret lingerie store chain posted a quarterly profit that topped Wall Street‘s view. But its shares fell 3.5 percent in late trade after its forecast for the current quarter fell short of expectations.
Apple Inc will struggle to cut its reliance on rival Samsung Electronics for component supplies, analysts and industry sources said on Thursday, despite speculation that it has begun reducing its use of Samsung memory chips.
Internet company AOL Inc , which has been engaged in a long-standing proxy fight with Starboard Value, urged shareholders to vote against the activist hedge fund’s slate of board nominees.
An experimental lung cancer pill being developed by Pfizer Inc showed promise in delaying worsening of the disease, according to preliminary results from a midstage study.
General Motors Inc’s decision to stop advertising on Facebook may be a wake-up call for the No. 1 social network, but advertising executives say it’s far too early to know if the site will take off as an advertising platform. “There’s a lot of potential but it’s not a slam-dunk,” said Martin Sorrell, chief executive of WPP Plc , the world’s largest advertising agency.
The U.S. telecommunications regulator is expected to announce plans on Thursday to set aside spectrum to connect wireless medical devices for more convenient health monitoring.
Royal Bank of Canada and Credit Suisse are among suitors who have put in initial bids to buy the non-U.S. wealth management business of Bank of America in a deal that could be worth about $ 2 billion, sources said.
HSBC , Europe’s biggest bank, said it cut costs by $ 2 billion after one year of a 3-year turnaround plan, and is on target to meet its return on equity and other financial targets.
Activision Blizzard Inc and arch rival video game company Electronic Arts Inc have settled a lawsuit in which Activision accused two former executives of breaking their employment agreements to develop games for EA.
Adding Johnson & Johnson’s advanced prostate cancer drug, Zytiga, to hormone therapy before surgery has been shown for the first time to eradicate tumors in some men with high-risk forms of the disease.
U.S. stocks closed lower in a choppy session on Wednesday, with the S&P 500 logging its fourth straight decline as investors worried about Greece’s future as a member of the euro zone.
The Dow Jones industrial average <.DJI> dropped 33.45 points, or 0.26 percent, to 12,598.55. The Standard & Poor’s 500 Index <.SPX> dropped 5.86 points, or 0.44 percent, to 1,324.80. The Nasdaq Composite Index <.IXIC> dropped 19.72 points, or 0.68 percent, to 2,874.04.
(Reporting by Blaise Robinson; Editing by John Stonestreet)
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Gold hits new low on Greece turmoil
SINGAPORE (Reuters) – Gold extended losses on Wednesday to slip to its weakest level since late December after efforts to form a new government in Greece collapsed, prompting investors to cut their exposure to the precious metal.
Bullion has this year been moving in tandem with assets that are perceived to be risky, casting off its status as a safe-haven in times of economic instability.
Concerns about upheaval in the euro zone hit the euro and sent share prices lower across Asia as Greek political leaders meet Wednesday to form a caretaker government that will lead the country into its second election in just over a month.
U.S. June gold futures, which often dictate spot gold, dropped more than 1 percent to a low of $ 1,532.7 an ounce, their lowest since December 29. Cash gold was also at a 4-1/2 month low.
“Everybody is rushing to buy the U.S. dollar. A strong dollar is negative for gold for the time being,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, adding that demand from jewellers was limited due to volatile prices.
“Jewellers don’t know what to do. Maybe when the price has stabilized at some levels, they will start to reenter the market. There’s a bit of scale-down buying.”
Spot gold was down $ 9.90 an ounce to $ 1,534.20 by 0422 GMT, having hit an intraday low of $ 1,532.09.
Gold rallied to a record of around $ 1,920 an ounce in 2011, when investors turned to the metal as a safe haven during the debt crisis in Europe. But bullion is moving with riskier assets this year as investors turn to the safety of the dollar and the euro hits multi-month lows.
Money managers in gold futures and options slashed their net long positions by 20 percent to the lowest level since December 2008, as investors aggressively unwound their bullish bets in the precious metal after a sharp price pullback.
The euro hit a four-month low on Wednesday, a day after Greece called a new election that may hand victory to leftists opposed to the terms of an EU bailout and raise the risk of the country exiting the euro zone.
Party leaders will convene at the presidential palace at 2 p.m. (1100 GMT) but said they had little hope President Karolos Papoulias’s offer would resolve a political crisis that has fuelled speculation Greece’s days in the euro zone are numbered.
In equity markets, MSCI’s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> extended losses for the fourth consecutive day, sliding 2 percent to a new 4-month low after retreating as much as 1.1 percent on Tuesday. The index has dropped more than 8 percent since May 2.
In the physical market in Singapore, jewelry makers from Thailand snapped up gold on the lower prices, while buyers from top consumer India could also return after buying some gold overnight.
“Definitely physical buying has gone up, although demand is not overwhelming. Indonesia has slowed down because there’s a public holiday tomorrow, while Thailand is buying,” said a dealer in Singapore.
“India did buy gold last night. They are not really in the market yet today, but I am sure they will be buying.”
The wedding season is underway in India and will taper off by the end of the month. Gold jewelry is an essential part of the dowry basket Indian parents give their daughters at weddings.
(Editing by Joseph Radford)
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Newsweek Cover Touts Obama as First Gay President
Following President Obama’s statement that his position has evolved to one of support for same-sex marriage, the media and political analysts are weighing in on exactly what that position means. Notably, the GOP has been fairly quiet on the issue, probably trying to get a handle on the public’s interpretation before establishing their own political narrative on the issue.
Many analysts seem to feel that gay marriage will not be a huge factor in the election, simply because the sides had already been fairly well established, even before Obama’s announcement. Even if gay marriage supporters had doubts about Obama’s personal beliefs, they were 100% of Mitt Romney’s and the GOP’s position on the matter, with few exceptions.
And while some rhetoric in support of the “institution of marriage” and other popular anti-gay-marriage talking points are sure to come out eventually, Romney and his supporters are wisely keeping quiet for now. In the broad forum of a general election, it’s far riskier for Romney to come out against gay marriage than it was for Obama to support it – even though the President surely would have preferred different circumstances to the hurried statement he was forced to make.
Wall Street Week Ahead: Stocks face choppy seas of bank woes, uncertainty
NEW YORK (Reuters) – More volatility could be in store for stocks next week as investors grapple with less certainty about the economic outlook and a new blow to the financial sector after JPMorgan Chase‘s trading loss.
Europe is expected to keep investors jumpy as well, with inconclusive results from the recent Greek election and the country’s future appearing more worrisome.
The economic picture appears cloudy these days, with some data showing a more positive trend and other reports showing the opposite. An index of consumer sentiment rose to its highest in a more than four years, but last week’s jobs report showed another monthly decline in hiring.
Next week brings minutes from the last Federal Reserve meeting, which investors will look to for more guidance on whether the central bank plans to give additional help to the economy.
Stocks closed lower for a second straight week on Friday after a week of choppy trading. Strategists say that’s likely to be the case again in days to come.
“Expect more volatility. We’re still seeing this natural risk aversion. We expect any source of bad news to trigger a sell-off, but we’re still not in a red-alert area,” said Omar Aguilar, chief investment officer of equities for Charles Schwab in San Francisco.
“The good economy in the U.S. is leading the way, with the Federal Reserve being very accommodating.”
Citigroup’s chief U.S. equity strategist, Tobias Levkovich, said the market has likely begun a pullback, and that the Standard & Poor’s 500 index <.SPX> could fall 5 percent to 7 percent from its April 2nd intraday high of 1,422.
“We’re going to probably spend several months in kind of choppy trading,” he said.
News that JPMorgan Chase & Co , the largest U.S. bank by assets, lost billions of dollar on bad trades raised fresh worries that the financial sector was not on the mend. The KBW bank index <.BKX> fell 1.2 percent for the day.
There’s likely to be more focus on the company next week. After the close of trading, Fitch Ratings cut JPMorgan‘s credit rating one notch and cited the bank’s $ 2 billion trading loss, and Standard & Poor’s revised its outlook of JPMorgan to negative.
The S&P financial index <.GSPF> has lost ground since rallying 21.5 percent in the first quarter. The index is still up 13.6 percent since the start of the year.
MESSAGE FROM THE FED
Wall Street will scrutinize the minutes from the FOMC‘s late April meeting, which the Fed will release on Wednesday at around 2 p.m. Eastern time.
At that April 24-25 meeting, the FOMC repeated its expectation that interest rates would not rise until late 2014 at the earliest, and it took no action on monetary policy.
But Federal Reserve Chairman Ben Bernanke spurred stock market gains when he told reporters on April 25 that “we remain entirely prepared to take additional balance-sheet actions as necessary to achieve our objectives. Those tools remained very much on the table and we would not hesitate to use them, should the economy require that additional support.”
More focus may be on the Fed and economic data next week, with the first-quarter U.S. earnings period nearly done. Ninety percent of S&P 500 companies have already reported results.
Major retailers set to report earnings next week include Home Depot , a Dow component, and JC Penney Co. , both on Tuesday, followed by Limited Brands , parent of Victoria’s Secret, and discount chain Target Corp on Wednesday. Wal-Mart Stores, Inc , the world’s largest retailer and a Dow component, is set to report earnings on Thursday before the opening bell.
The week’s mostly closely watched economic indicators will include the U.S. Consumer Price Index and retail sales, both for April, on Tuesday, followed by April housing starts and April, industrial output and capacity utilization, all on Wednesday.
In Europe, problems with the Greek elections raised the risk of it exiting the euro zone.
“I think earnings and valuations are still very compelling. Unfortunately, what we’re looking at on earnings and valuations is going to be overshadowed by the fact that we’ve got these global issues we’re dealing with: Greece and France and their elections, and debt issues and the possible breakup of the euro,” said Evan Nowack, managing director at HighTower’s Leventhal Group in Bethesda, Maryland.
BEARISH PATTERN
Technical charts indicate bearishness ahead.
“My ‘bigger picture’ view is that in the near or intermediate term, further downside is favored,” said Chris Burba, short-term market technician at Standard & Poor’s in New York.
S&P 500 charts are showing a “head-and-shoulders top,” he said, noting that demand earlier this month was not strong enough to push the benchmark index above its April high.
He sees support just below 1,300, while resistance could come at 1,415 for the S&P 500.
“The outlook stays bearish unless you get above 1,415,” Burba said.
(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)
(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)
Orangutans Use iPads to Communicate at Miami Zoo
Linda Jacobs oversees the program in Florida and notes, “Our young ones pick up on it. They understand it. It’s like, ‘Oh I get this.’ Our two older ones, they just are not interested. I think they just figure, ‘I’ve gotten along just fine in this world without this communication-skill here and the iPad, and I don’t need a computer.’” If that sounds a lot like humans’ take on computers – based on age – well, that’s because it is kind of similar.
In Jungle Island, keepers have already been communicating with the orangutans by sign language for a long time, so this is merely the evolution of communication between animals and humans. Noted Jacobs, “We’re able to really monitor their health on a daily basis. We can do daily checks. If somebody’s not feeling well, we know it immediately.” Jacobs would ultimately like the animals to be able to communicate with humans not versed in sign language. She says, “It would just be such a wonderful bridge to have. So that other people could really appreciate them.”
The Stamp Out Hunger Drive: Helping to End Hunger in America
This Saturday provides an opportunity to end hunger in America, and it all starts at your mailbox. The National Association of Letter Carriers and the Campbell Soup Company are sponsoring the Stamp Out Hunger Drive. This Saturday, May 12th, citizens are asked to put out canned goods (non-perishable items) by their mailbox. The food will be collected by their mail carrier and then distributed to foodbanks.
The charity Feeding America says the Stamp Out Hunger Drive is the largest single food drive in the country. The event provides a significant boost to Feeding America’s network of emergency foodbanks across the country.
Sarah Cook of the Cincinnati Freestore Foodbank says that last year Stamp Out Hunger donations produced enough food for 80,000 meals provided to the area’s hungry. Denise Gibson of the Ozarks Food Harvest said 131,000 pounds of food were donated by citizens of Southwest Missouri via Stamp Out Hunger.
Terry Shannon, the President of the St. Mary’s Food Bank Alliance in Arizona says Stamp Out Hunger raises “Between 350,000 and 400,000 pounds (of food). It is the largest one day food drive for the food bank.” St. Mary’s provides aid throughout Arizona including supporting summer feeding for children in Maricopa County. The agency also assists Apache County, which has a 28% food insecurity rate, one of the highest in the country.
Dan Getman of the Food Bank of South Jersey said the event last year produced 119,550 pounds for their agency to distribute. Getman adds that Campbell’s Soup is sending out collection bags to homes in South Jersey to encourage donations.
Foodbanks all across the country need help as there are nearly 49 million people suffering from hunger.
The collection of canned goods can provide some quick relief especially at a time of the year when donations are generally down as compared to the holidays.
There is one extra thing Americans can do via the Stamp Out Hunger Drive. You could send a letter or an e-mail this Saturday to your representative in Congress asking them to fight hunger. You can remind them of the need to support the nation’s foodbanks as you will be doing on Stamp Out Hunger Day.
Nora Balduff of the Second Harvest Foodbanks of Ohio says Stamp Out Hunger “comes at a lean time of year for emergency food relief, after the Thanksgiving and Christmas holidays.” The Mid-Ohio Foodbank, West Ohio Foodbank, Akron-Canton Regional Foodbank, The Foodbank, Inc. (Dayton), and The Shared Harvest Foodbank (Fairfield) all benefit from Stamp Out Hunger.
Balduff adds that the event “also comes at a time when one of our federal partners in hunger relief, the U.S. House of Representatives, could vote on May 10th to cut SNAP/food stamp benefits by an average of $ 57.00 for a family of four by September 2012 (H.R. 4666)…Caring Ohioans do their part to end hunger, we need our federal partners to do the same.”
You can also ask your representative to take steps to improve the nation’s school feeding program, particularly during the summer months when many hungry children are not able to access school meals.
Ask your representative to pledge to fight hunger in America and also abroad where children are starving in Africa, Afghanistan, Yemen and other areas. Your elected officials can follow a tradition of Truman, Eisenhower and other leaders who supported ending hunger.
So this Saturday’s Stamp Out Hunger Drive can be a great success. By donating canned goods you can provide quick relief to our nation’s foodbanks as they struggle to keep up with the growing hunger crisis in America. Via a simple letter you can ask your elected officials in Congress to represent you and your desire to end hunger in America and all over the globe.
For more information visit Stamp Out Hunger.
Article first published as The Stamp Out Hunger Drive: Helping to End Hunger in America on Blogcritics.
Eight Great Reasons to Study Abroad While in School
Impressing prospective employers, learning another language and making friends across the globe are just a few good reasons to consider studying abroad while attending school. In fact, these perks are only the beginning of the benefits an international experience can provide to students in college, and even high school.
Learning does not occur in a vacuum; sometimes a classroom feels like one. Anyone who has ever sat through a 90-minute lecture knows that taking notes to the lull of a professor’s droning voice can leave you wondering why you bothered to show up to class at all.
Educators know that learning is a social activity; this is why so many classes require cooperative learning or discussion. Educational philosopher John Dewey believed that we learn by doing. His theory of experiential education is often a critical component of teacher preparation programs, and encourages students to experience what they are learning, instead of merely hearing or reading about it.
Imagine learning about the Sistine Chapel, and then staring up at it moments later. Imagine conjugating verbs in Spanish, and then ordering your meal in the native tongue in Barcelona. Imagine studying about hunter-gatherer cultures, and then visiting one in Tanzania. All of these are possible with a little research, an adventurous spirit and openness to trying new things.
If you still aren’t sold, here are a few more reasons to consider study abroad during your school years.
1. It looks great on a resume. In today’s job market, applicants need to stand apart from the crowd. Letting prospective employers know that you’ve spent time living in another country shows that you can adapt to new surroundings, are independent, and aren’t afraid to step out of your comfort zone. If you know another language, this is a bonus because it’s a skill most people do not possess. Living abroad isn’t always easy, and employers like to know that you are willing to take on challenges.
2. You can learn to speak a different language. If you decide to live in a non-English speaking country, you will quickly pick up the language. Things like buying groceries, going to the bank and speaking with the locals forces you to think in the native language, not quickly try to translate in your head. If you want to learn a language other than English, living in the country is the fastest way to do it.
3. You will get better at math. Yes, you read that right. You will spend a lot of time converting the local currency into dollars to see how much money you are spending on food, drink and souvenirs. Of course, you can take the easy route and get a currency converter app, but sometimes you’ll need to do it on the fly – and you’ll be glad you paid attention in math class.
4. Studying abroad can save you money. This statement probably seems like an outright lie, but it’s true. For example, I attended a private university as an undergraduate, but studied abroad through a program at a state school (and I lived in-state). The tuition for the semester was about a third of what I would have paid if I’d stayed in the U.S. In addition, I got a scholarship designed for students studying internationally. Researching scholarship opportunities like this is worth the time – earning one could mean saving thousands of dollars in loans later in life.
5. You will meet people from all over the world. Not only will you meet them, you’ll probably form lasting friendships. If you stay with a family, you will likely stay in contact with your hosts and visit them when you return to the country. There will also likely be students from other countries in your program who you will get to know and want to see again. Living abroad often gives people the travel bug, and when you are in a new place, knowing someone always helps.
6. You will learn and experience things you can’t at your home school. This is especially true if you choose a destination that fits with your interests and course of study. As I alluded to above, learning about the architecture of the Roman forum will mean something more if you are standing in the middle of it. Choose a program that offers excursions or off-campus lectures for a truly authentic experience.
7. Finding the time and money to travel will become more difficult as you get older. Once you enter the workforce you’ll probably have a job with limited vacation and limited pay. Get out and see the world before you graduate, when there are deals for students that don’t apply to adults. And when you have obligations like a mortgage, and a family to support, international travel probably won’t be a viable option.
8. You develop a new appreciation for home. For many people – especially college students – going home during breaks or vacations can be a bummer. You have to leave your friends and your independence behind, and follow your parents’ rules. Being away from family and friends for a semester or summer is difficult, and you may be homesick. But when you return, you’ll appreciate your loved ones, and even your hometown, in a totally different way.
Of course, there are many reasons not mentioned here to consider study abroad. This list highlights a few of the many benefits. Consider checking with your school’s study abroad office for more information, or your guidance counselor if you are a high school student. Happy traveling!
Wall Street cuts losses, but mood fragile
PARIS (Reuters) – Stock index futures pointed to a lower open on Wall Street on Monday, with futures for the S&P 500 down 0.83 percent, Dow Jones futures down 0.76 percent and Nasdaq 100 futures down 0.78 percent at 5:10 a.m. EDT (0910 GMT).
The index futures fell after Greek voters trounced ruling parties in elections on Sunday, a result that put the country’s future in the euro zone at risk, and as Socialist candidate Francois Hollande won the French presidency.
Greek voters dealt a serious blow on Sunday to the fragile political consensus that has kept Europe’s currency bloc intact through more than two years of crisis, rejecting the austerity-for-aid policies that have shielded the country from bankruptcy and a euro exit.
Greece’s vote, combined with the victory of Socialist Francois Hollande over incumbent Nicolas Sarkozy in a French presidential election, will raise pressure on Europe’s paymaster Germany to pursue a more growth-oriented approach to the crisis.
The euro zone’s blue chip Euro STOXX 50 <.STOXX50E> index was down 1.2 percent, while Greece’s benchmark index <.ATG> tumbled 6.6 percent and the country’s banking index <.FTATBNK> sank 15 percent.
Brent crude fell below $ 113 a barrel on Monday, hitting its lowest since January, while gold edged lower, pressured by a stronger dollar.
General Motors and its China joint ventures sold 227,217 vehicles in the country in April, up 11.7 percent from a year earlier.
Satellite imagery company DigitalGlobe Inc on Sunday rejected a $ 792 million takeover offer from rival GeoEye Inc , saying the hostile bid substantially undervalued the company and its financial prospects.
Billionaire investor Carl Icahn has sold his $ 250 million debt holdings in Philip Falcone’s telecom start-up LightSquared , while Falcone continues to negotiate with creditors to avoid a debt default, according to sources familiar with the matter.
Wall Street ended its worst week this year with a sharp sell-off on Friday after a slowdown in job creation in the world’s top economy raised the biggest question mark yet about the prospects for growth.
The Dow Jones industrial average <.DJI> dropped 168.32 points, or 1.27 percent, to 13,038.27 at the close. The Standard & Poor’s 500 Index <.SPX> lost 22.47 points, or 1.61 percent, to 1,369.10. The Nasdaq Composite <.IXIC> fell 67.96 points, or 2.25 percent, to 2,956.34.
(Reporting by Blaise Robinson; Editing by Toby Chopra)
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