Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Five Things You Need to Know for Wednesday

By

What you need to know (and what it means).

PrintPRINT

Five things you need to know to stay ahead of the pack on Wall Street.

1. Consumer Price Index

  • For January, CPI came in .7% month-over-month compared to .5% expected
  • Ex-food & energy because, hey, who needs 'em, month-over-month, CPI was .2%, which was expected
  • CPI year-over-year, 4.0%, versus 3.8%
  • CPI year-over-year, ex. food & energy, 2.1% versus 2.2%

    Now, what does all that mean? According to initial news commentary, conventional wisdom is that higher-than-expected January data will be enough keep the Fed on course for its expected rate hike at the next meeting in late March. Meanwhile, the Wall Street Journal takes the spin that "underlying price pressures remain largely contained," while pointing out that "inflation may be overstated" due to a "quirk" in the CPI calculation.

    What is the "quirk?" It's the Bureau of Labor Statistics "Seasonal Adjustment" process.


2. Alaska Reaches Natural Gas Pipeline Pact With XOM, BO, COP

After decades of negotiations, Alaska has reached an agreement with XOM, BP and COP to build a huge natural gas pipeline from the North Slope to N. America, the WSJ reported

  • It will be the largest civil-engineering project ever undertaken, according to the Wall Street Journal
  • The deal was cemented when Alaska Gov. Frank Murkowski submitted legislation to replace the state's oil-production tax with a profit-linked levy that received the blessing of the three companies
  • The Republican governor's bill would set the tax rate at 20 percent of profit earned from oil and gas production, while providing a 20 percent tax credit for profits reinvested in Alaska and other breaks aimed for small producers, Reuters said
  • The pipeline will not be completed until 2012-2014
  • Although pegged at $20 billion, that figure is based on 2001 steel prices, which have nearly doubled since then.


3. Port Authority?

President Bush vows to veto any legislation aimed at stopping the Dubai UAE Port deal, according to the New York Times

  • Bush issued the threat after the Senate majority leader, Bill Frist, and the House speaker, J. Dennis Hastert, publicly criticized the deal and said a thorough review was necessary to ensure that terrorists could not exploit the arrangement to slip weapons into American ports
  • Meanwhile, the WSJ takes a more sober view of the Port Deal on the editorial pages, noting that a bidding war between the British company (P&O) that currently manages the ports has been ongoing since last fall, and the board of that company accepted Dubai's offer last month
  • Meanwhile, a Florida company that is partners with P&O last week filed a suit to block the purchase


4. The Nikkei Sway?

The Nikkei 225 has been freaking out lately, up 400, down 200, up a couple hundred, then back down a couple hundred, or so it seems. Yesterday the Nikkei was down .7%. What is really going on?

  • Even today, however, more than a decade past the all-time high, the Nikkei remains 60% below that peak.
  • Everyone believes Japan is back, and here are three big reasons why.
  • Wait, just who do you mean by "everyone"? Maiko Asaba, for one. If you don't know who she is, you're out of the loop.


5. Taiwan On and Forget the Chinese

Iran and Russia and nukes? Big Deal. Some vague hints at nuclear retaliation and strikes here and there, who can say for sure? Moving beyond vague hints, however, to publicly outlined and explicit threats of force is China vs. Taiwan.

  • Taiwan President Chen Shui-bian confirmed his commitment to scrap guidelines on unification with rival China, a measure likely to anger Beijing, according to reports.
  • China and Taiwan split amid civil war in 1949, but Beijing still occasionally threatens the use of force if the self-ruled island moves toward formal independence.
  • China is likely to see Chen's plan to abolish the guidelines, first mentioned last month, as a step in the direction of formal independence.
  • Chen told U.S. Congressman Rob Simmons that the National Unification Council and 15-year-old guidelines on unification with China were "absurd products of an absurd era," according to the Washington Post.
  • Chen's remarks followed newspaper reports that he had snubbed a special U.S. envoy, refusing to go back on his decision to scrap the council and the guidelines.


THIS CONTENT IS FOR EDUCATIONAL PURPOSES AND IS NOT INTENDED AS ADVICE.

Minyanville contributors may trade securities that are discussed on the site, both before and after the articles are published and/or may have a position in such securities for either personal or firm account(s). Minyanville contributors will indicate whether he or the firm has a position in stocks or other securities in any of the companies he discusses in an article. He will not disclose his or the firm's ownership of any securities issued by companies that are not discussed in an article. The disclosures will be accurate as of the time of publication of an article and may change at any time thereafter without notice to the reader.

The information on this website reflects an analysis of market conditions by Minyanville contributors and should not be interpreted as or deemed to be a recommendation to any investor or category of investors to purchase, sell or hold any security. Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Minyanville contributors will not respond to requests for individual and specific investment advice.

The views expressed on this website are solely those of the writers whose articles appear on this site and do not necessarily reflect the views of the Fund or of any other person except where expressly indicated.

Copyright 2006 Minyanville Publishing and Multimedia, LLC. All Rights Reserved.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE