The earnings being turned in by U.S. banking titans are decidedly mixed, but it looks like there will be no more disasters. Still, Paul Miller at FBR told CNBC this morning that economic growth needs to rebound for these companies to regain a real measure of health.
Miller said investors should focus more on banks' top-line revenue and outlook than their earnings. "I think investors have accepted the fact that credit costs are going to be high and elevated for a long period of time, but the issue is can they earn themselves out of it," he said.
Jan 20, 2010 1:27 PM
House of Lords member and Keynes biographer Robert Skidelsky points out that a flood of money printed by a central bank only causes inflation if it's actually spent. And since we're barely spending anything these days, our inflation outlook is muted — which doesn't speak well of the strength of the recovery.
After all, when economies recover from recession, they usually grow above trend. This means that prices will rise above trend. The fact that there is no evidence of higher prices in the pipeline means that there is no real evidence of economic recovery.
Jan 20, 2010 9:43 AM
Look for shares of hospital chains based in the Nashville to have some choppy days as investors sort out the consequences of Scott Brown's Senate election victory in Massachusetts. The reform plan on the table has generally been seen as a positive for hospital operators, who could (eventually) count on treating fewer uninsured patients. More broadly, Fitch came out negative on the health care sector Tuesday, saying the oh-so-tentatively improving economy will make it hard for providers to maintain strong credit ratings. SEE ALSO: Another reason health insurers had a good day
Jan 20, 2010 8:22 AM
Shares of Nashville-based building products supplier Louisiana-Pacific are up more than 4 percent — to 15-month highs — on the back of an upgrade from RBC Capital Markets analyst Paul Quinn. In a note explaining his move to lift LP to 'outperform,' Quinn said he foresees a slow-growth scenario that will help LP on the pricing front because other manufacturers will be hesitant to restart idled plants. He expect LP (Ticker: LPX) to reach $9 in the coming year.
Jan 19, 2010 2:23 PM
New research from LifeWay shows that a drop in giving to Protestant churches has about half of pastors fretting about investing in new initiatives.
"The pastors surveyed clearly indicated that the economy has hurt them and, for many, giving is the same or down from 2008," Stetzer said. "Consequently, they are showing more caution in their budgets and seem to be more hesitant to try new things."
Jan 19, 2010 7:29 AM
Maybe the recovery hasn't started yet. JP Morgan CEO Jamie Dimon alluded to the possibility of more trouble ahead on a Friday conference call.
Betsy Graseck of Morgan Stanley asked if there was anything preventing JP Morgan from raising its dividend. Dimon: Not really. I think we’ve said we really want to see a real recovery before we do that because we don’t want to have to do this again, just in case you have another dip down here. Finally, Calyon analyst Mike Mayo tried to clear things up. “So you expect [nonperforming assets] to go down in mid or late 2010?” Dimon: “Well, Mike, we don’t know when the recovery is.”
Jan 18, 2010 7:50 AM
A new report shows that the number of business formations fell by a quarter last year in the U.S., more than double the average drop around the world. But those getting going are as upbeat as ever.
“What surprised me was that as much as one in four new entrepreneurs in wealthy countries believed that the global slowdown had created more opportunities for their business, not less. This is a significant and interesting group. They are more likely to be young, well-educated and expect to create a lot of jobs for others.”
Jan 14, 2010 7:34 AM
In announcing that his team has paid down almost half its debt since 2007 and recently amended its main debt agreement, Central Parking boss Emanuel Eads cuts to the chase: There are deals out there and he's ready to take advantage.
“This amendment gives us plenty of additional runway to navigate the current environment and provides the core financing we need to take advantage of the markets as they begin to rebound.” Mr. Eads continued, “We are actively seeking to leverage our expertise to expand the business, and the flexibility that this amendment provides will help facilitate those efforts.”
Jan 13, 2010 2:57 PM