Bloggy Business Today

By Richard Hubbard

LONDON |
Fri May 11, 2012 3:27am EDT

LONDON (Reuters) – European shares and commodities fell on Friday while safe haven German bonds jumped, as deepening euro zone political turmoil and weak economic data from China raised growth concerns, while a shock trading loss from JPMorgan (JPM.N) added to market jitters.

The growing risk aversion put the MSCI world equity index .MIWD00000PUS on course for a second weekly loss of over 2 percent and even sent gold, often used as a safe haven, down more than half a percent to around $1,585.86 an ounce.

The euro dipped to a fresh 3-1/2 month low of $1.2905 as news of JP Morgan’s losses from a failed hedging strategy spooked investors already anxious about the political deadlock in Greece.

JPMorgan’s news “is worrying because this is a company which was perceived to being absolutely excellent in risk management,” said Guy Stear, head of research at Societe Generale in Hong Kong.

Falls in bank stocks helped push the FTSE Eurofirst .FTEU3 index of top European shares down 0.6 percent to 1,013.26 points at the start of trading.

Earlier China added to fears about a deepening global slowdown by reporting that industrial production from its huge factory sector had weakened sharply in April. It also said consumer inflation had moderated to 3.4 percent in April, which could allow for a further moderate easing of policy.

In Europe the focus will turn to the European Commission’s short-term economic forecasts due later, which will shed light on the scale of the recession across the region and possibly on Germany’s rebound.

Markets are also waiting to hear how Spain aims to shore up the country’s lenders, which could send shares lower if its plans disappoint.

(Editing by David Holmes)

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By Edward Krudy

NEW YORK |
Mon Apr 30, 2012 4:39pm EDT

NEW YORK (Reuters) – The SP 500 posted its first monthly decline since November on Monday, as stocks slipped in one of the lightest trading days of the year on signs the U.S. economy may be slowing and as a recession in Spain highlighted risks in the euro zone.

Despite Monday’s decline, the picture was not overwhelmingly negative. The SP closed out April with a decline of 0.8 percent, after four straight days of gains last week helped the index pare much steeper losses for the month.

Still, a recent string of economic data suggests the economy may slow in the summer months and has caused the market to stall just shy of the four-year highs reached earlier in the month. A much sharper-than-expected decline in Midwestern business activity in April reported on Monday by an industry group was the latest evidence of a slowdown.

“We had such a strong first quarter, and we’ve lost that momentum in the last two weeks,” said Jake Dollarhide, chief executive at Longbow Asset Management in Tulsa, Oklahoma. The data “reinforces the ominous tone on Wall Street, along with the fears we have about Europe.”

Composite trading volume was the third lightest of the year at 5.8 billion on Monday compared with a daily average of this year of around 6.8 billion, according to preliminary data. The CBOE volatility index .VIX, or VIX, climbed 5.1 percent, after earlier hitting its highest level in more than a week.

Spain on Monday reported its economy contracted in the first quarter, dragging the country into recession as deep government spending cuts to reduce a massive deficit and troubles in the banking sector likely delayed any return to growth. Though expected, the news highlighted the serious headwinds the world economy faces.

Banks were among the top decliners on Wall Street after Standard Poor’s cut the credit ratings of 11 Spanish banks on Monday, following its downgrade of Spain last week.

The SP 500 financial sector index .GSPF fell 0.6 percent while Bank of America Corp (BAC.N) dropped 1.7 percent to $8.11. Shares of Spanish bank Santander (STD.N) traded in New York fell 2.2 percent to $6.33 and are down 16 percent this year.

The Dow Jones industrial average .DJI dropped 14.68 points, or 0.11 percent, to 13,213.63. The Standard Poor’s 500 Index .SPX fell 5.45 points, or 0.39 percent, to 1,397.91. The Nasdaq Composite Index .IXIC lost 22.84 points, or 0.74 percent, to

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My news for Investors

-Quarterly Net Revenues Increased by 55.2% Year-Over-Year

-Quarterly Net Income Attributable to TAL Decreased by 10.2% Year-Over-Year

-Quarterly Non-GAAP Net Income Attributable to TAL Decreased by 17.4% Year-Over-Year

- Fiscal year Net Revenues Increased by 60.5% Year-Over-Year

- Fiscal year Net Income Attributable to TAL Increased by 1.1% Year-Over-Year

- Fiscal year Non-GAAP Net Income Attributable to TAL Increased by 9.8% Year-Over-Year

BEIJING, April 25, 2012 /PRNewswire-Asia/ — TAL Education Group (NYSE: XRS) (“TAL” or the “Company”), a leading K-12 after-school tutoring services provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year 2012 ended February 29, 2012.

Financial Highlights for the Fourth Fiscal Quarter Ended February 29, 2012

• Net revenues increased by 55.2% year-over-year to US$52.2 million from US$33.7 million in the same period of the prior fiscal year.
• Net income from continuing operations decreased by 9.5% year-over-year to US$7.6 million from US$8.4 million in the same period of the prior fiscal year.
• Net income attributable to TAL decreased by 10.2 % year-over-year to US$7.6 million from US$8.4 million in the same period of the prior fiscal year.
• Non-GAAP(1) net income attributable to TAL, which excluded share-based compensation expenses, decreased by 17.4 % year-over-year to US$9.0 million from US$10.9 million in the same period of the prior fiscal year.
• Basic and diluted net income per American Depositary Share (“ADS”)(2) were US$0.10 and US$0.10, respectively. Non-GAAP basic and diluted net income per ADS, in each case excluding share-based compensation expenses, were US$0.12 and US$0.12, respectively.
• Total student enrollments during the fourth quarter of fiscal year 2012 increased by 47.0% year-over-year to approximately 228,500.
• Total physical network decreased to 270 learning centers as of February 29, 2012 from 275 learning centers as of November 30, 2011.

Financial Highlights for the Fiscal Year Ended February 29, 2012

• Net revenues increased by 60.5% year-over-year to US$177.5 million from US$110.6 million in the prior fiscal year.
• Net income from continuing operations decreased by 0.3% year-over-year to US$24.3 million from US$24.4 million in the prior fiscal year.
• Net income attributable to TAL increased by 1.1% year-over-year to US$24.3 million

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By Rodrigo Campos and Ryan Vlastelica

NEW YORK |
Fri Apr 20, 2012 5:58pm EDT

NEW YORK (Reuters) – After a strong first quarter, Wall Street has gotten a case of the jitters.

A spike in bond yields has brought Europe’s debt crisis back to the forefront. U.S. economic figures point to steady-but-uninspired growth, and stocks have backed off the sharp gains that recently pushed indexes to near four-year highs.

Stocks returned a bit to their winning track this week after strong earnings reports, and investors are waiting to see if more positive surprises from U.S. companies are in store.

Nearly 180 of the SP 500′s components will report earnings next week, and heading into a seasonally weak period, the market will need strong reports to offset the perception that there’s no more room to rally.

“It is very encouraging that the majority of the news flow is about earnings rather than Europe,” said Leo Grohowski, who oversees about $171 billion in client assets as chief investment officer at BNY Mellon Wealth Management in New York.

Earnings are “alleviating our concerns about economic growth and making us feel more comfortable about our estimates for the year.”

Next week will see earnings releases from several bellwethers. The most important will likely be Apple Inc (AAPL.O), which reports after the market close on Tuesday.

While the largest U.S. company by market capitalization has a history of blowout quarters, many say the company’s meteoric rise so far this year has created unrealistic expectations. For the first time since December 2008, the stock fell more than 4 percent in back-to-back weeks.

Analysts see double-digit earnings growth for the SP’s financial and consumer discretionary sectors in 2012, with industrials close behind. All three are cyclical growth sectors, while sectors that tend to lead at the end of a growth cycle and before corrections are expected to slow.

Still, worries remain about Europe, where bond yields have been rising to ominous levels. And with investors skeptical of the SP’s nearly 30-percent surge since its October low, the “sell in May, go away” adage could prove prophetic.

A trend of buying into the market’s weakness was recently broken, indicating investors might be ready to capitulate.

The SP has closed near its lows on recent down days, while positive sessions have ended well below their highs.

“We don’t see the type of buying that will cause the market to slow its pullback,” said Joseph Greco, managing director at Meridian Equity Partners in New York. “There’s no conviction buying.”

PULLBACK DONE OR

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By Angela Moon

NEW YORK |
Thu Apr 12, 2012 2:44pm EDT

NEW YORK (Reuters) – U.S. stocks rose more than 1 percent on Thursday as lower Italian bond yields eased some euro-zone concerns and rumors about China’s strong GDP growth bolstered investors’ appetite for risk.

The SP 500 popped above its 50-day moving average in a sign that traders may see the recent pullback of nearly 5 percent as an opportunity to catch up with the benchmark’s performance. The index is up more than 10 percent for the year to date.

In a sign that the labor market’s recovery may be stalling, government data showed new claims for unemployment benefits rose unexpectedly last week to their highest level since January. But some economists cited the Easter holidays for the spike in claims, adding that they expected applications will keep declining in the weeks ahead.

Benchmark bond yields in Italy and Spain dropped following solid demand at this week’s Italian debt auctions, while the euro hit a one-week high against the U.S. dollar, indicating a reduction in near-term concern about the euro zone’s debt troubles.

“The easing bond yields are a signal to investors here that things aren’t quite that bad in Europe,” said Brian Gendreau, market strategist with Cetera Financial Group.

The Dow Jones industrial average .DJI was up 169.72 points, or 1.32 percent, at 12,975.11. The Standard Poor’s 500 Index .SPX was up 16.66 points, or 1.22 percent, at 1,385.37. The Nasdaq Composite Index .IXIC was up 35.26 points, or 1.17 percent, at 3,051.72.

Basic materials shares led gains as the euro climbed against the U.S. dollar and commodity prices advanced. The SP materials sector index .GSPM jumped 2.8 percent. U.S. Steel (X.N) gained 5.9 percent to $28.94. Freeport-McMoRan Copper Gold (FCX.N) rose 6 percent to $37.93.

Early into earnings season, results are beating Wall Street’s expectations at a fast clip. Analysts say the expectations could have been lowered too much and stocks can seem cheap after the SP’s recent pullback of almost 5 percent.

“What early reports we have already show a pretty good beat rate,” said Jim Paulsen, chief investment officer of Wells Capital Management in Minneapolis. “I wonder if we’re going to beat the low hurdle of earnings.”

Market participants also cited expectations that China’s gross domestic product data, due tonight, would surprise on the upside as a reason for gains in basic materials shares. But some were skeptical of this rumor.

“The China story I’m seeing is getting misinterpreted. The Chinese government researcher

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