Last updated: June 15, 2012 10:20 am
Morning business round-up: ECB ready to act 'if necessary' - BBC News
What made the business news in Asia and Europe this morning? Here's our daily business round-up:
Continue reading the main storyThe European Central Bank (ECB) said it is ready to provide further support ''if necessary'' to the eurozone's banking system.
Its president Mario Draghi said: "The eurosystem will continue to supply liquidity to solvent banks where needed."
A general election in Greece on Sunday has heightened fears of further instability on financial markets.
Greece saw a major retailer, France's Carrefour, pull out of the country.
The French retail giant said it was selling its stake in its Greek joint venture owing to fears about Greece's deteriorating economic situation.
It is selling to partner Marinopoulos, and will take a financial charge of about 220m euros (£179m; $278m) on the deal.
In a statement, the company said the move was in response to "challenges posed by the Greek economic context".
Carrefour's shares rose 1.68% following the announcement.
Still in Europe, new EU car registrations slumped.
Demand for new passenger cars fell sharply across the European Union in May, reflecting weak consumer confidence in the wake of the financial crisis.
The European Automobile Manufacturers' Association said new car registrations totalled 1,106,845 vehicles, down 8.7% compared to the same month last year.
France led the decline with a 16.2% market contraction, closely followed by Italy, which fell 14.3%.
Only the UK market grew, rising 7.9%.
Meanwhile, in the UK, its central bank acted to try to boost confidence and lending against a backdrop of failing business nerve in the face of the eurocrisis.
UK bank shares jumped on the stimulus move.
The Bank of England's plan, announced late on Thursday, came in response to the worsening economic outlook, its governor Sir Mervyn King said.
Together with the government, it will provide billions of pounds of cheap credit to banks to lend to companies.
Business headlines
To Asia now, where Coca-Cola announced it would start business again in Burma.
It has been 60 years since it last operated there and its return follows a US decision to suspend investment sanctions against the country.
Officials suspended the sanctions last month as the country has moved towards democratic reforms.
Coca-Cola is waiting for a licence from the US government.
The country was one of only three that Coca-Cola does not do business with.
And as Burma opens up to international business, the latest Business Daily podcast reports from Rangoon, and asks if Burma is set to become a new Asian Tiger, or whether the legacy of 50 years of mismanagement is too great an obstacle.
Business sceptical of boost for economy - Financial Times
Last updated: June 15, 2012 1:09 pm
UPI NewsTrack Business - United Press International
U.S. markets rise
NEW YORK, June 14 (UPI) -- U.S. stock markets appeared to defy gravity Thursday, heading higher despite a global downturn.
With stocks lower in Asia and Europe, the Dow Jones industrial average added 155.53 points, or 1.24 percent, to 12,651.91.
The Nasdaq composite index gained 17.72 points, or 0.63 percent, to 2,836.33.
The Standard and Poor's 500 gained 14.22 points, or 1.08 percent, to 1,329.10.
On the New York Stock Exchange, 2,166 stocks advanced and 920 declined on a volume of 3.5 billion shares traded.
The Bureau of Labor Statistics Thursday said consumer prices for all items rose 1.7 percent in the past 12 months before seasonal adjustment.
In a separate report, the Labor Department said first-time unemployment benefit claims rose by 6,000 to 386,000 in the week ended Saturday.
The benchmark 10-year treasury note fell 14/32 to yield 1.643 percent.
The euro rose to $1.2628 from Wednesday's $1.2557. Against the yen, the dollar fell to 79.40 yen from Wednesday's 79.48 yen.
In Tokyo, the Nikkei 225 index dropped 0.22 percent, 18.95 points, to 8,568.89.
In London, the FTSE 100 index slid 0.31 percent, 16.76, to 5,467.05.
Europe's auto capacity may be too high
DETROIT, June 14 (UPI) -- An auto industry expert said automakers in Europe need to reduce production capacity in order to stay competitive.
Richard Hanna, global automotive leader for PriceWaterhouseCoopers, said: "These factories are very capital-intensive. They need to be sweating to make money.
"We don't see, overall, the European market growing. You have to take some capacity out," he said.
Due to the great recession, U.S. automakers trimmed manufacturing capacity by about 5 million vehicles per year, Hanna said.
Automakers are face a serious economic downturn in Europe and a possible disruption of financial systems if Greece or any other nation leaves the eurozone, the 17-country region that shares the euro as currency, The Detroit News reported Thursday.
"The current business environment in Europe is challenging and will require some tough decisions," said Ford Motor Co. spokesman Mark Truby.
"The industry still has not faced up to the overcapacity issues despite the severe economic issues since 2008," Truby said.
Chrysler and Fiat Chief Executive Officer Sergio Marchionne said all eyes on are the upcoming weekend election in Greece, which could decide the fate of the currency region.
"I think a lot depends now on what happens on June 17. I don't want to exaggerate the value of that vote, but it is going to be the catalyst for a variety of decisions," Marchionne said.
Quarterly statements outline the story that has automakers on edge in Europe.
Ford, for example, lost $149 million in Europe in the first three months of 2012, after posting a $293 million profit for the last quarter in 2011.
General Motors came out even January through March in Europe in 2011 and lost $300 million on the continent in the first quarter this year, the newspaper said.
Poll: Small businesses back Obamacare
WASHINGTON, June 14 (UPI) -- Half of the respondents in a recent survey of small business owners said they prefer that the U.S. Supreme Court leave the Affordable Care Act mostly intact.
The bill, signed into law in 2010, could be upheld, struck down or modified by the country's high court.
A business advocacy group, Small Business Majority, said a recent poll of 800 business owners in Florida, Illinois, Louisiana, Michigan, Missouri, New York, Texas and Virginia showed strong support for the law.
Fifty-percent of the respondents indicated they would like the Supreme Court to leave the bill, known in some circles as Obamacare, mostly upheld. Concurrently, a third of the respondents indicated they would like the court to cancel the healthcare program that many Republicans deem too costly.
By an 8-to-1 majority, respondents indicated they would use their state's online insurance exchange program, while a 2-to-1 majority indicated they would like their state to set up an insurance exchange program.
The insurance exchange program is one that allows owners of independent businesses to join a larger risk pool.
Small Business Majority said 49 percent of entrepreneurs indicated their interest in buying insurance through the Affordable Care Act would increase when a tax credit for small businesses offering insurance becomes available to small business participants.
Small Business Majority said the survey was conducted by Greenberg Quinlan Rosner Research. The results have a margin of error of 3.5 percentage points.
Nokia to phase out 10,000 jobs
ESPOO, Finland, June 14 (UPI) -- Finnish handset giant Nokia said Thursday it would phase out 10,000 jobs by the end of 2013 in a broad restructuring plan meant to save billions of dollars.
The total financial repositioning is not completely known. Nokia said it plans to sell some assets, such as its line of Vertu luxury mobile phones, which it is selling to EQT VI, a private equity firm. It said it was aiming to reduce operating cost by $2 billion by the end of next year.
The company said it would cut research-and-development units, which would mean closure of Nokia facilities in Ulm, Germany, and Burnaby, Canada.
Its manufacturing plant in Salo, Finland, would close, although Nokia said it would keep its R&D unit in Salo going.
In a statement, Nokia said "this period of transition" includes a shakeup of its executive team.
Among the leadership changes, Nokia said Juha Putkiranta would serve as executive vice president of operations. Timo Toikkanen would take the post of executive vice president of mobile phones.
The company's chief marketing officer, Jerri DeVard, will "step down," Nokia said. Chris Weber would take the post of executive vice president of sales and marketing.
With the changes, Nokia is aiming to "focus on the products and services that our customers value most, while continuing to invest in the innovation that has always defined Nokia," said President and Chief Executive Officer Stephen Elop.
Elop called the job cuts "a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength."
Nokia employs 139,000 people, the company's Web site says.
STOCKS NEWS SINGAPORE-ABN AMRO upgrades CapitaLand to buy - Reuters UK
(Refiles to fix bank name in first paragraph)
ABN AMRO Private Banking has upgraded property developer CapitaLand Ltd to 'buy' from 'hold', with a target price of S$2.93, citing policy loosening and rate cuts in China.
Shares of CapitaLand were up around 3 percent at S$2.71 and have gained about 22.6 percent so far this year, versus the Straits Times Index's 6 percent gain.
While first-time homes still make up the bulk of sales, upgrader demand has returned on the back of China's interest rate cuts, its first since the global financial crisis, ABN AMRO said.
China makes up around 30 to 40 percent of CapitaLand's revalued net asset valuation, it added.
Average selling prices for residential properties in Beijing and Hangzhou are down 25 and 37 percent respectively since 2011, but are falling at a slower pace helped by a recovery in sales volumes, ABN AMRO said, adding the company does not have significant unsold inventory.
However, CapitaLand management does not expect the housing market to ease significantly until mid-2013, when there is potentially more clarity on housing policies, ABN AMRO said.
"Management intends to focus on Beijing, Shanghai, Chengdu and Chongqing going forward, where it believes it has enough scale and product edge to differentiate itself from competition," it said.
1514 (0714 GMT)
(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)
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12:51 STOCKS NEWS SINGAPORE-Shares rise, led by CapitaLand
Singapore share were up by midday, reversing two straight days of losses as investors regained some confidence from plans by major central banks to limit potential fallout following this Sunday's Greek elections.
At 0426 GMT, the benchmark Straits Times Index was up around 0.5 percent at 2,787.79.
Other Asian bourses were also up, with the MSCI Asia-Pacific index excluding Japan gaining 0.7 percent, slightly outperforming Singapore.
Officials from the G20 nations, whose leaders are meeting in Mexico next week, said that central banks were ready to take steps to stabilise financial markets - if needed - by providing liquidity and prevent any credit squeeze after Sunday's election.
Property developer CapitaLand Ltd and rigbuilder Sembcorp Marine were the biggest gainers on the index, rising about 2.7 percent and 2.3 percent respectively. Sembcorp was also the second most-traded stock by value.
1232 (0432 GMT) (Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)
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11:20 STOCKS NEWS SINGAPORE-DBS says S'pore tourism sector healthy
Singapore's tourist arrivals in April rose 9 percent from a year ago, and could point to a record breaking performance for hoteliers in the second quarter, which will benefit the hospitality sector, said DBS Vickers.
The brokerage also said the Singapore Tourism Board's (STB) target of 13.5 million to 14.5 million visitor arrivals this year could be exceeded.
According to STB data, tourism arrivals for the month of April rose 9 percent to 1.2 million from a year earlier, raising year-to-date arrivals to 4.8 million.
Hotel occupancy rates for April were at 87 percent with revenue per available room around S$227 per night, a 12 percent year-on-year jump, STB said.
"Visitor arrival numbers should continue to remain robust given the expected strong line-up of Meetings, Incentives, Conventions and Exhibitions events in coming months," DBS said.
Its top picks for the hospitality sector are CDL Hospitality Trusts, with a buy rating and target price of S$2.06, and Genting Singapore. It has a buy rating and target price of S$2.05 on Genting stocks.
1033 (0233 GMT)
(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)
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09:57 STOCKS NEWS SINGAPORE-STX OSV rises after order win
Shares of STX OSV Holdings Ltd rose as much as 3.52 percent after the offshore vessel builder said it had won a $235 million contract, prompting analysts to raise their target prices for the stock.
By 0156 GMT, shares of STX OSV were up 3.2 percent at S$1.465, and have gained about 26 percent since the start of the year, compared with the FTSE ST Oil & Gas Index's 13 percent gain.
STX OSV said its won a contract worth 1.4 billion Norwegian crown ($235 million) to design and build an advanced offshore subsea construction vessel for Ocean Installer and Solstad Offshore.
CIMB Research said this was STX OSV's largest contract win since its listing in Singapore and its fifth subsea order so far this year.
CIMB raised its target price for STX OSV to S$2.09 from S$2.02 and kept its 'outperform' rating, as it bumps up its order target for the company to 10 billion Norwegian crowns, from 9 billion Norwegian crowns.
"Investment in drilling units in 2011 should pave the way for such vessels, which are needed for field development. We continue to see opportunities in the subsea segment," said CIMB.
Another brokerage DMG & Partners also lifted its earnings per share estimates for STX OSV in 2012-2013 by 4-6 percent, upgrading its target price to S$2.05 from S$2.00.
For a related statement click
0942 (0142 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)
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8:40 STOCKS NEWS SINGAPORE-Index futures up 0.1 pct
Singapore index futures were 0.2 percent higher, indicating a slightly positive start for the benchmark Straits Times Index.
Asian shares edged up on Friday, and the euro held most of the previous session's gains, as nervous investors took comfort from plans for coordinated action by major central banks to stabilise markets if Sunday's election in Greece results in turmoil. (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)
Europe stocks rise on central bank hopes - Marketwatch
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — European stocks headed north on Friday, as investors cheered reports that central bankers stand ready to act if the Greek elections over the weekend trigger further financial turmoil.
The Stoxx Europe 600 index /quotes/zigman/2380150 XX:SXXP +0.74% rose 0.8% to 243.84, on track for a 0.8% weekly gain.
Athens' must-win voter district
Athens B, a giant district of nearly 1.5 mln voters surrounding central Athens, has voted for the winner of nearly every Greek election since 1974.
Swedish retailer H&M Hennes & Mauritz AB /quotes/zigman/177851 SE:HMB +1.59% helped lift the index, rising 1.6% after second-quarter sales beat market expectations. H&M defies bleak conditions as sales rise
For the broader stock markets, indexes moved higher on hopes that central bankers will react if the Greek parliamentary election on Sunday creates further financial instability or a credit crunch. Reuters reported late Thursday that central banks are prepared to provide liquidity in case of severe market tension, citing Group of 20 officials. Central banks to act on bad Greek outcome: report
Meanwhile, European Central Bank President Mario Draghi said in prepared statements Friday morning that the “Eurosystem will continue to supply liquidity to solvent banks where needed.” Draghi: ECB stands ready to supply liquidity
The Greek election on Sunday is widely perceived as an important point in the euro-zone crisis, as markets speculate that a victory for antiausterity party Syriza could lead to Greece leaving the currency bloc. See: Polarized Greece girds for coalition or euro exit
“The costs of a potential near-term Greek exit are too high for either Greece or the euro area. A disorderly exit would likely lead to a massive run on bank deposits, a meltdown of the Greek banking system and further aggravation of Greece’s large economic downturn,” analysts at Barclays Research said in a note.
“For the euro area, the main cost would be contagion, which is literally incalculable because it depends in large part on ‘psychological’ responses to the exit. But the risks are potentially enormous.”
The Athens General Index /quotes/zigman/1384511 GR:GD -0.04% soared 10.1% on Thursday following unofficial polls pointing to a victory for the pro-austerity New Democracy party. The index inched 0.4% higher to 552.58 on Friday.
Koen de Leus, strategist at KBC Securities, said stock markets will be watching the election results closely and it could be a “blood bath” if Syriza wins. Especially cyclical stocks like energy firms and base material companies would be hurt, he pointed out.
“It’s a big risk to take positions ahead of the election. If Syriza wins you’ll see markets going down 5% in the beginning, “ he said. “But a catastrophe will be avoided because of interventions from central banks”.
“I’m still hopeful for solutions, but nothing will be solved after the election. Whether New Democracy or Syriza win the Greece problem isn’t over and the country still has huge austerity measures to follow up on.”
In the U.K., banks were further boosted by a speech late Thursday from Chancellor of the Exchequer George Osborne, saying that the Bank of England will activate an emerging lending program under which auctions of short-term sterling liquidity can be held at any time. He also said the Treasury will provide cheap funding for banks if they boost lending to British households and companies. Osborne: BoE ready to activate emergency lending
Royal Bank of Scotland Group PLC /quotes/zigman/10330253 UK:RBS +7.63% /quotes/zigman/530544/quotes/nls/rbs RBS +4.08% jumped 7%, Lloyds Banking Group PLC /quotes/zigman/126322 UK:LLOY +4.05% /quotes/zigman/255656/quotes/nls/lyg LYG +2.22% rose 3.8% and Barclays PLC /quotes/zigman/301787 UK:BARC +4.02% /quotes/zigman/152323/quotes/nls/bcs BCS +3.86% added 5%.
The FTSE 100 index /quotes/zigman/3173262 UK:UKX +0.30% gained 0.6% to 5,500.50, further buoyed by oil firms rising along with firmer oil prices. Royal Dutch Shell PLC /quotes/zigman/359915 UK:RDSA +1.75% /quotes/zigman/359955 UK:RDSB +1.22% /quotes/zigman/379078/quotes/nls/rds.a RDS.A +1.01% /quotes/zigman/379012/quotes/nls/rds.b RDS.B +0.79% advanced 1.6% and BP PLC /quotes/zigman/210014 UK:BP +1.38% /quotes/zigman/247026/quotes/nls/bp BP +1.44% climbed 2.3%.
Spanish stocks rose and bond yields eased after a week in the spotlight. The IBEX 35 index /quotes/zigman/2759620 XX:IBEX +0.23% rallied 1.3% to 6,783.10. Iberdrola SA /quotes/zigman/455970 ES:IBE +2.87% added 3.6% and Banco de Sabadell SA /quotes/zigman/456075 ES:SAB +1.92% rose 3.1%.
Yields on 10-year Spanish government bonds /quotes/zigman/4869131/delayed ES:10YR_ESP -0.37% fell 9 basis points to 6.81%, after inching closer to the keenly-watched 7% level on Thursday. A basis point is 1/100 of a percentage point.
In France, most stocks were also trading in positive territory, with financials and Total SA /quotes/zigman/167939 FR:FP +1.76% /quotes/zigman/167990/quotes/nls/tot TOT +1.33% , up 1.9%, providing support. Insurance firm AXA SA /quotes/zigman/163170 FR:CS +3.82% shot up 4.2%, while bank Société Générale SA /quotes/zigman/167380 FR:GLE +3.31% added 3.3%. The CAC 40 index /quotes/zigman/3173214 FR:PX1 +1.49% traded 1.5% higher at 3,077.28.
Food retailer Carrefour SA /quotes/zigman/163594 FR:CA +3.18% rose 3.1% after announcing it will sell its stake in its Greek unit to Marinopoulos, its partner in Greece. Carrefour to sell Greek unit stake to Marinopoulos
German stocks were moving higher, as car makers partly reversed recent losses. Daimler AG /quotes/zigman/231580 DE:DAI +1.58% gained 1.2% and Volkswagen AG /quotes/zigman/150347 DE:VOW +1.32% /quotes/zigman/150411 DE:VOW3 +1.90% moved 1.9% higher. The DAX 30 index /quotes/zigman/2380246 DX:DAX +1.19% traded 0.9% higher at 6,192.88.
Gains in financial stocks push up European equities - Reuters UK
* FTSEurofirst 300 index rises 0.5 percent in early trade
* Financials stocks lead market rally
* Hopes that central banks deal with any Greek vote fallout
LONDON, June 15 (Reuters) - European shares advanced on Friday as financial stocks rose on expectations of new central bank measures to deal with the risk of a Greek exit from the euro zone.
The FTSEurofirst 300 index was up 0.5 percent at 987.46 points by 0745 GMT. Germany's DAX was up 0.9 percent, while France's CAC-40 index rose 1 percent.
Investors are wary ahead of elections in Greece on June 17, which could determine the future of the debt-ridden country in the euro zone currency bloc.
Officials from G20 nations told Reuters on Thursday that central banks were ready to take steps to stabilise financial markets, if needed, by providing liquidity and preventing any credit squeeze after Sunday's election.
The signal that world authorities were ready to take steps to prevent any worsening of Europe's debt crisis supported European financial shares on Friday, which have fallen sharply in recent weeks due to their exposure to Greece.
The STOXX 600 European bank index rose 1.6 percent, while the European insurance index gained by 1.3 percent.
However, Securequity sales trader Jawaid Afsar said he would be tempted to sell off shares later on Friday, in order to minimise any hits to portfolios in case of any unforeseen outcomes from the Greek election.
"If you're already in the rally, you should use the rally to start closing out your positions to reduce the risk ahead of Sunday," he said.
JN Financial trader James Fogden also said the European equities market rally could peter out later in the day, with an expiry of options contracts due at 1000 GMT also likely to make the trading session a volatile one.
"We could see a bit of a pull-back later," he said.
The FTSEurofirst has been within a tight trading range between 970 and 990 points established in early May, and traders said it was likely to remain in that range while uncertainty over the euro zone debt crisis persisted. (Reporting by Sudip Kar-Gupta; Editing by Louise Ireland)
U.S. targets financial abuse of elderly - Los Angeles Times
Americans over 60 lost at least $2.9 billion in 2010 to financial exploitation — ranging from simple home repair scams to complex insurance swindles. That figure was up 12% from 2008, according to a study released Thursday by MetLife Mature Market Institute, the National Committee for Prevention of Elder Abuse and Virginia Tech University.
The rise in abusive tactics led the Consumer Financial Protection Bureau to begin looking into the types of scams affecting older Americans and coming up with the best ways to prevent them. A specific focus will be on the credentials of people who tout themselves as financial advisors.
"The silent crime of financially exploiting the elderly is widespread, and it is devastating. It is critical for us to act," Richard Cordray, the agency's director, said at a White House forum Thursday ahead of World Elder Abuse Awareness Day.
"The generation that rebuilt and sustained this nation out of a devastating Depression, the dark hours of World War II and the anxious fears of the Cold War deserve our care now," Cordray said.
Tougher oversight by regulators is needed to prevent financial predators from preying on vulnerable elderly victims, said Patricia L. McGinnis, executive director of California Advocates for Nursing Home Reform, a San Francisco group that often deals with financial abuse.
"The bottom line is, you need to go after the predators. You need to punish them and you need to convict them," she said. "Put them in jail and make an example of them, but more importantly, get the money back for that victim. Make them whole again."
McGinnis described efforts by regulators and advocates to prevent the scamming of older Americans as a game of Whac-A-Mole.
A recent scam enticed senior citizens to put large amounts of savings into deferred annuities, reducing their savings to qualify for a particular federal veterans benefit. The veteran might get $1,000 a month from the benefit, but loses access to the cash for years. Meantime, the annuity salesperson earned a commission of 8% to 12%, she said.
Victims often are reluctant to fight back.
"I can't tell you the times I talk to people and they say, 'It was my own fault,'" McGinnis said. "They are very embarrassed."
The scams have increased as the economy has struggled. Survey results released this week by the nonprofit Investor Protection Trust found that 84% of experts who deal with financial exploitation of the elderly said the problem has worsened.
But there is a lack of comprehensive information on the problem, which the consumer bureau's inquiry could help solve, said Elizabeth Costle, director of the consumer and state affairs team at the AARP Public Policy Institute.
Financial predators often target the elderly because they are viewed as gullible, Cordray said.
"Many seniors have routines, and their predictable patterns make them easier targets for predators," Cordray said. "Abusers often assume that the victim will be too embarrassed or too frail to pursue legal action against them, and unfortunately that assumption is too often proven to be correct."
The agency's inquiry seeks comments from the public on several issues. They include detailing the unfair, deceptive and abusive practices targeted at the elderly, finding the types of financial planning resources, and evaluating the credentials of financial advisors. The agency will be accepting public comments until Aug. 13.
Cordray said that some people who tout themselves as experts on elderly financial issues have had only a few hours of inadequate training.
"We need to distinguish between the true experts and those engaged in predatory conduct," he said.
The qualifications of financial advisors are important as new retirees must decide what to do with lump-sum 401(k) payouts and often must juggle many complex options, Costle said. The ability to understand those options gets more difficult as people age.
"As people get older, particularly up into their 80s ….they're just less able to process financial information," she said. "They're more likely to be trusting of people and they open themselves up to more abuse, which is perpetrated both by strangers and by caregivers and family members who are close to them."
Congress and the White House have increased their focus on the issue.
Lawmakers included the Elder Justice Act in the 2010 healthcare reform law to coordinate federal efforts. As part of the law, Health and Human Services Secretary Kathleen Sebelius on Thursday announced $5.5 million in grants to states to "test ways to prevent elder abuse, neglect and exploitation."
Has Microsoft just spent $1billion on business social network Yammer? - Daily Mail
By Eddie Wrenn
|
Yammer: The site has reportedly been purchased for over $1billion
You may not be massively familiar with Yammer, a business social network, but Microsoft apparently thinks so much of the site it has agreed to pay $1.2billion for the site.
The Wall Street Journal reported the acquisition - worth about 772million - this morning, although so far neither partner has confirmed the deal.
Yammer, founded in 2008, is strictly for business social networking - and you can only join the site if you have the right 'email' address.
For instance, a Microsoft employee could join the network if they sign up with a '@microsoft.com', which gives a level of validation to members
The site has been nominated for many awards in the past, such as TechCrunch's Best Enterprise Startup and Best New Startup, and it has previously received more than $140million in investment funding.
Microsoft has been very closely embedded with Facebook so far, with the site's search engine Bing integrated in Facebook. However this might be Microsoft's way of embedding itself with the enterprise side of social networking.
Some tech commentators suggest we may end up seeing Yammer integrated into popular Microsoft applications like the Office suite.
According to KnowYourMobile, Yammer - which is free for members unless they wish to upgrade to premium for $5 a month, is used by 200,000 companies including Ford and eBay.
Microsoft also purchased Skype last year for $8.5billion.
U.S. Stocks Rise on Reports Policy Makers May Take Action - Bloomberg
U.S. stock futures advanced, indicating the Standard & Poor’s 500 Index will complete a second straight weekly rally, on speculation central banks will act to boost economies as Europe’s debt crisis threatens growth.
Equity futures pared gains as a report showed the manufacturing in the New York region expanded in June at the slowest pace in seven months as orders and sales cooled.
S&P 500 (SPX) futures expiring in September rose 0.1 percent to 1,327 at 8:36 a.m. New York time, paring a gain of as much as 0.5 percent. The benchmark gauge for American equities has gained 0.3 percent this week. Dow Jones Industrial Average futures added 20 points, or 0.2 percent, to 12,626 today.
“Ahead of Sunday’s election in Greece, central bankers stand ready, again,” Peter Boockvar, equity strategist at Miller Tabak & Co. in New York, wrote in a note. “With all the water central banks have expended out of their fire hoses over the past few years in their attempt to ’do something,’ I can only think of magic candles. Those candles you blow out that only flare up again immediately after.”
Central banks intensified warnings that Europe’s failure to tame its debt crisis threatens to roil the world’s financial markets and economy as Greece’s election in two days looms as the next flashpoint for investors. A victory by Syriza, the party that promises to renege on Greece’s end of the bailout deal, could speed the nation’s exit from the euro. The Group of 20 leaders prepare to meet in Mexico next week amid the weakest international economy since the 2009 recession.
Industrial production in the U.S. probably cooled in May as businesses trimmed investment plans and fewer motor vehicles rolled off assembly lines as sales slowed, a report may show.
Economic Concern
Concern about a global economic slowdown and a worsening of Europe’s debt crisis put the S&P 500 on the brink of a so-called correction earlier this month. The index dropped 9.9 percent from an almost four-year high in April through June 1. The lowest valuation in six months and expectations of global policy action drove the benchmark gauge up 4 percent since then.
Any multiyear rally in U.S. stocks may depend on a signal that the bond market has yet to send, according to Michael Hartnett, Bank of America Corp. (BAC)’s chief global equity strategist.
Bond yields have to reach “an inflection point” before shares can move into what’s known as a secular bull market if history is any guide, Hartnett wrote in a June 12 report.
The CHART OF THE DAY compares the Dow Jones Industrial Average and the yield on 10-year Treasury notes since 1900, as Hartnett did in his report. The yield figures were compiled by Yale University Professor Robert J. Shiller and obtained from his website.
Inflection Points
Hartnett highlighted three inflection points in the past century, as shown in the chart. They foreshadowed stock-market booms during the 1920s, after World War II, and throughout most of the 1980s and 1990s.
A comparable surge in share prices is unlikely, he wrote, “until Treasury yields rise in response to stronger growth and a healthier global economy.” The 10-year yield fell to a record 1.4387 percent this month.
Even so, lower yields are giving investors more incentive to shift into stocks from bonds, the New York-based strategist wrote. He estimated that it will take a 0.6 percent yield for the 10-year’s return in the next 12 months to match stocks’ 20th-century average of 10.5 percent a year.
To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
U.S. Stocks Increase
Scott Eells/Bloomberg
Traders work at the New York Stock Exchange (NYSE) in New York.
Traders work at the New York Stock Exchange (NYSE) in New York. Photographer: Scott Eells/Bloomberg
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