Bloggy Business Today

By Lucia Mutikani

WASHINGTON |
Fri Jan 27, 2012 9:59am EST

WASHINGTON (Reuters) – The U.S. economy grew at its fastest pace in 1-1/2 years in the fourth quarter of 2011, but a strong rebuilding of stocks by businesses and a slower pace of spending on capital goods hinted at softer growth early this year.

U.S. gross domestic product expanded at a 2.8 percent annual rate, the Commerce Department said on Friday, a sharp acceleration from the 1.8 percent clip of the prior three months and the quickest pace since the second quarter of 2010.

It was, however, a touch below economists’ expectations in a Reuters poll for a 3 percent rate, and nearly 2 percentage points was due to the build-up in business inventories.

The report supported the Federal Reserve’s ultra easy monetary policy stance to nurse the recovery.

“This seems consistent with the Fed’s view that the U.S. economy is going to need all the help it can get to hit escape velocity in the next couple years,” said David Watt, a senior currency strategist, RBC Capital, Toronto

U.S. stock index futures turned negative after the data, while government debt prices pared losses. The euro held gains against the dollar.

Growth in the fourth quarter got a temporary boost from the rebuilding of business inventories, which was the fastest since the third quarter of 2010, after they declined in the third-quarter for the first time since late 2009.

Inventories increased $56.0 billion, adding 1.94 percentage points to GDP growth. Excluding inventories, the economy grew at a tepid 0.8 percent rate, a sharp step-down from the prior period’s 3.2 percent pace.

The robust stock accumulation suggests the recovery will lose a step in early 2012.

Also pointing to slower growth, business spending on capital goods was the slowest since 2009, a sign the debt crisis in Europe was starting to take its toll.

Expectations of soft growth led the Fed on Wednesday to say it expected to keep interest rates at rock bottom levels at least through late 2014.

Fed Chairman Ben Bernanke said the central bank, which forecast growth this year in a 2.2 percent to 2.7 percent range, was mulling further asset purchases to speed up the recovery.

The Fed warned the economy still faced big risks, a suggestion the euro zone debt crisis could still hit hard.

The economy grew 1.7 percent in 2011 after expanding 3 percent the prior year.

“The Fed is attempting to shield the economy from a potentially more severe recession in Europe,” said Ryan Sweet, a

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By Edward Krudy

NEW YORK |
Fri Jan 27, 2012 9:55am EST

NEW YORK (Reuters) – U.S. stocks fell on Friday after data showed the U.S. economy grew less than expected in the fourth quarter, while weak earnings from Ford and continued caution over Europe’s debt crisis also weighed on the market.

U.S. gross domestic product expanded at its fastest pace in 1-1/2 years in the fourth quarter of 2011, the Commerce Department said, but missed forecasts. A strong rebuilding of inventories and weak spending on capital goods hinted at slower growth this year.

“Today’s GDP numbers while positive indicate that the economy is not really doing all that well and (Federal Reserve) Chairman Bernanke’s extreme policy may be in fact what’s needed,” said Michael Sheldon, chief market strategist at RDM Financial, Westport, Connecticut.

“I wouldn’t be surprised to see some profit-taking at any time, given the recent rally we’ve had.”

Ford Motor Co (F.N) shares fell 5.5 percent to $12.04 after the carmaker reported a lower-than-expected fourth-quarter profit on higher commodity costs and losses in Europe and Asia.

The Dow Jones industrial average .DJI was down 37.31 points, or 0.29 percent, at 12,697.32. The Standard Poor’s 500 Index .SPX slipped 1.47 points, or 0.11 percent, at 1,316.96. The Nasdaq Composite Index .IXIC was up 3.55 points, or 0.13 percent, at 2,808.83.

Euro zone finance officials voiced optimism a deal to avert a disorderly Greek default was imminent and key building blocks to resolve Europe’s sovereign debt crisis were gradually fitting into place. Renewed concern about the crisis has troubled markets this week.

Procter Gamble Co (PG.N) shares fell 0.1 percent to $64.82 after its quarterly profit plunged 49 percent as it wrote down the value of its appliance and salon professional products businesses. It also said this year’s profit would come in lower than previously expected due to the strong dollar.

Chevron Corp (CVX.N) reported lower earnings as increased spending on oil and gas projects and losses at its refinery business offset gains from higher crude oil prices. The shares fell 2.4 percent to $104.01.

Juniper Networks Inc (JNPR.N) and Riverbed Technologies Inc (RVBD.O) offered gloomy first-quarter outlooks late Thursday that were below expectations. Juniper was down 8.1 percent to $20.55.

According to Thomson Reuters data, 59 percent of 152 SP 500 companies reporting earnings as of Thursday morning beat analysts’ estimates. In recent quarters, the beat rate has been 70 percent at this stage of the earnings season.

A rally from late last year that has pushed the

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When a person communicates verbally, either in conversation or in a presentation, the common goal is to make people understand what is being said.  This can be accomplished by having in mind the word KISS (keep it short and simple).  It is advisable not to assume that people will understand what is intended to be said.  Obviously, the message will not necessarily get through.  People carry their own attitudes, opinions, emotions and experiences to an encounter and this often clouds their understanding of the message. Read the rest of this entry »

My news for Investors

30-Year Technology Industry Veteran Brings Extensive Leadership Experience

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MINNEAPOLIS, Jan. 26, 2012 /PRNewswire/ – FICO (NYSE: FICO), the leading provider of analytics and decision management technology, announced today that William J. Lansing, a 30-year veteran in the technology industry and a current member of the FICO board of directors, has been appointed chief executive officer of FICO, effective January 27, 2012. 

(Logo:  http://photos.prnewswire.com/prnh/20111010/CG83314LOGO)

Mr. Lansing succeeds Dr. Mark N. Greene, who is retiring as the company’s chief executive officer.  Dr. Greene will remain with the company through February 2013 in an advisory capacity, and serve on the FICO board until the 2012 Annual Meeting of Shareholders.

“On behalf of the entire board of directors, I am delighted that Will has been appointed as CEO of FICO,” said A. George (Skip) Battle, chairman of the board of FICO. “Will’s proven leadership as a member of our board for the past six years, and his successful track record of driving new business opportunities, make him the right person to lead FICO through its next phase of growth and development. We are confident Will is the right person to ensure that FICO capitalizes on its market-leading position and global opportunities to drive future growth and value creation for our shareholders.”

Mr. Lansing said, “I am honored and excited to have been selected to lead FICO, an innovator in predictive analytics with one of the most respected and well-known brand names in the financial services industry.  For the past six years, I have had the honor of serving as a director of FICO and I deeply admire this company’s hard-working and dedicated employees, and respect its broad, global client base.  I look forward to continuing to work closely with my fellow directors, as well as FICO’s talented management team, to build upon this company’s strong foundation for the benefit for our customers, employees, partners and shareholders.”

Mr. Battle added, “On behalf of the board and everyone at FICO, I thank Mark for his dedication and leadership during the past five years.

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WASHINGTON |
Thu Jan 26, 2012 9:24am EST

WASHINGTON (Reuters) – New orders for manufactured goods rose in December and a gauge of future business investment rebounded, while new claims for jobless benefits rose only moderately last week, suggesting the labor market was still healing.

Durable goods orders climbed 3.0 percent, the Commerce Department said on Thursday. Economists had forecast orders rising 2.0 percent.

Durable goods range from toasters to big-ticket items like aircraft which are meant to last three years and more.

Orders last month were buoyed by 5.5 percent increase in bookings for transportation equipment as orders for civilian aircraft surged 18.9 percent. Boeing received 287 orders for aircraft during the month, according to the plane maker’s website, up from 96 in November.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, advanced 2.9 percent.

Business spending, which has helped the economy to recover from the 2007-09 recession, had been showing signs of cooling but December’s rebound in new orders suggested corporations might be growing more willing to invest.

“What it does tell you about going into the new year is that there’s some momentum here,” said Jacob Oubina, an economist at RBC Capital Markets in New York.

Also, shipments of non-defense capital goods orders excluding aircraft, which go into the calculation of gross domestic product, rose 2.9 percent after declining 1.0 percent in November.

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Graphic on jobless claims:

link.reuters.com/xah36s

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Investors in U.S. stock futures appeared to take little notice of the data, with prices slightly higher. U.S. Treasury debt prices pared gains modestly.

Increased consumer spending and efforts by companies to restock their shelves likely led the U.S. economy to accelerate at the end of 2011 although many economists expect some of that strength to wane early this year.

A report due Friday is expected to show the economy grew at a 3.0 percent annual rate in the fourth quarter, up from 1.8 percent in the previous period.

The proxy for business spending plans had dropped 1.2 percent in November and 0.9 percent in October. Economists’ had expected a 1.0 percent gain last month.

Orders for motor vehicles edged up 0.6 percent. Excluding transportation, orders rose 2.1 percent.

In a separate report, Labor Department data showed new U.S. claims for unemployment benefits rising last week but the underlying trend continued to point to improving labor market conditions.

Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 377,000, the Labor Department said. The prior week’s figure was revised up to 356,000 from the previously reported 352,000.

On Wednesday,

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