Twitter unseals IPO papers, hopes to raise $1B

 Economy
Oct 032013
 
Twitter unseals IPO papers, hopes to raise $1B

In this Feb. 2, 2013, file photo, a smartphone display shows the Twitter logo in Berlin, Germany, Twitter unsealed the documents Thursday, Oct. 3, 2013, for its planned initial public offering of stock and says it hopes to raise up to $1 billion. AP/dpa, Soeren Stache NEW YORK (AP) — Twitter has unsealed the documents for its planned initial public offering of stock and says it hopes to raise up to $1 billion in one of the year’s most eagerly awaited stock market debuts. The documents revealed for the first time how much money the social networking company makes. Founded in 2006, Twitter has never turned a profit and has an uninterrupted history of losses totaling $419 million since its inception. But its revenue is growing. Twitter disclosed three weeks ago that it filed confidential papers to start the IPO process. The company was taking advantage of federal legislation passed last year that allows companies with less than $1 billion in revenue in its previous fiscal year to avoid submitting public IPO documents. On Thursday, Twitter Inc. unsealed the papers with the Securities and Exchange Commission, giving potential investors and its users a look inside its business. Twitter was required to unseal its documents at least three weeks before it starts holding events around the country to woo potential investors. At this rate, the company will likely price its IPO by Thanksgiving. According to the IPO filings, Twitter generated $317 million in revenue in 2012 and had more than 218 Read More …

Ahead of the Bell: BlackBerry

 Economy
Oct 032013
 
Ahead of the Bell: BlackBerry

NEW YORK — Shares of BlackBerry edged lower before Thursday’s opening bell with hurdles beginning to materialize before a potential deal to put the troubled smartphone maker up for sale. Bernstein Research cut its rating on the company to “Underperform,” reversing an upgrade Monday, saying that BlackBerry’s cash position is far worse than previously thought. Analysts with the firm project that the company will burn through close to $2 billion over the next two quarters on a stand-alone basis. As a result, Fairfax has “almost no chance” to secure the financing and support it needs for its bid, the investment firm said. Fairfax said two weeks ago that it would buy BlackBerry for close to $5 billion, but the financing has always been in question. However, on Wednesday it was revealed that a private equity firm might be interested in buying BlackBerry as well. Cerberus is looking to sign a confidentiality agreement with BlackBerry that would allow it to access the company’s private information, an official familiar with the situation said Wednesday on condition of anonymity. The official is not authorized to discuss the private talks. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Fairfax, BlackBerry’s largest shareholder, is still trying to attract other investors. It’s unclear whether Cerberus is seeking to join with Fairfax or if it is moving in separately. Under the agreement with Fairfax, BlackBerry is allowed to speak with other potential buyers. Citi analyst Jim Suva was more optimistic about the company’s prospects and upgraded Read More …

Gov’t mulls safeguard for newsprint industry

 Economy
Oct 032013
 
Gov’t mulls safeguard for newsprint industry

MANILA, Philippines – The Philippine government will investigate whether it should put in place safeguard measures on imports of newsprint from other countries amid claims by the domestic industry that newsprints imports are threatening the local newsprint production. In a notice posted on the World Trade Organization’s (WTO) website, the Permanent Mission of the Philippines to the international body said the country has initiated a safeguards investigation on the imports of newsprint from various countries. “The investigation was initiated on Sept. 20, 2013,” the notice read. The investigation is being conducted following an evaluation of the petition filed by the domestic newsprint industry represented by Trust International Paper Corp. (TIPCO). TIPCO is the dominant local player for newsprint. Locally produced newsprint is made mainly from recycled paper. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 It is used for newspapers, books and school pads. In the notice, the Permanent Mission of the Philippines to the WTO said the documents submitted by the petitioner showed that “increased imports have caused serious injury to the local newsprint industry as indicated in their declining market share, production, sales, capacity utilization, productivity, profitability, price suppression, depression and undercutting.” DTI assistant secretary Ceferino Rodolfo said in a text message yesterday that since the investigation would look into safeguards, two elements have to be established by the investigation. In particular, the investigators would look at whether there was an increase in quantities of imports and whether such are causing serious injury to the local industry. Read More …

Economic stimulus? Honestly?

 Economy
Oct 032013
 
Economic stimulus? Honestly?

It is called the Disbursement Acceleration Program or DAP. Calling DAP an economic stimulus seems like an afterthought concocted by a devious bureaucrat to justify the use of taxpayer money in less than honorable ways. If this happened during Ate Glue’s watch, I wouldn’t have been surprised. That it happened under P-Noy’s Daang Matuwid makes it a painful betrayal of the public trust. I don’t buy the DBM’s justification of its existence as a means to get the economy moving at a time when the government agencies like DOTC couldn’t get their projects going. It is difficult to understand why, as Sec. Abad gives the impression, government agencies can move fast when funded by DAP but exhibit poor absorptive capacity with their regular budgets. The better way to stimulate the economy is to get the infrastructure agencies to move their projects. The jobs created as well as the benefits the infra projects will bring will certainly boost the economy… legally and morally. It is noteworthy we only heard of how DAP actually works the past few days. We only found out because Jinggoy Estrada revealed it as his defense on the pork issue. There were press releases and news reports in the Official Gazette on it but said nothing about asking senators to nominate projects, in the case of Sen. Frank Drilon, P100 million worth. I am glad to note that I am not the only one originally madly supportive of P-Noy who does not buy this DAP story. Indeed, Read More …

Growing into the presidency

 Economy
Oct 032013
 
Growing into the presidency

It was heartening to learn that Marciano A. Paynor Jr. has been appointed director general of APEC 2015.  No one could be more knowledgeable and better prepared with the intricacies of hosting a major international event. Paynor has been involved in every APEC meeting since its inception. He has been chief of protocol and head of the Presidential Protocol Office during which he oversaw multiple state visits (both incoming and outgoing).  He is a model foreign service officer, non-partisan and committed to the nation, regardless who is the president.  President Aquino’s decision to appoint Paynor seems to be a turning point, in what had previously been his tendency to go to his nuclear political family (those who were with him in his presidential campaign slog – classmates, those who served during President Corazon Aquino’s tenure, gun club friends, and Liberal Party supporters). This is of course par for the course among our presidents to reward their supporters with appointments in government. In the case of President Aquino, however, much of this bias was motivated to a great extent by his deep mistrust of anyone outside this immediate circle, and in the case of those who were associated with his predecessor, Gloria Arroyo, with great distaste even if they were competent and honest.  Three years into his term, to his chagrin, he is finding out that some of his appointees have either been proven incompetent or whose integrity have come into question. Although known to be fiercely loyal to his friends, the President it seems Read More …

Stocks end higher despite of caution

 Economy
Oct 032013
 
Stocks end higher despite of caution

MANILA, Philippines (Xinhua) – The stock market extended its rally today even after the fiscal drama in the United States has left many guessing of local investors on the US Federal Reserve’s next move. The bellwether Philippine stock market gained 0.4 percent or 25. 39 points to 6,387.65, while the broader all-share index rose by 0. 14 percent or 5.52 points to 3,842.32. Trading volume reached 921 million shares worth P6.11 billion ($141.74 million) with 72 stocks declining, 62 advancing, and 52 were unchanged. Of the six counters, only the financials and the industrial sectors bucked the trend. “Share prices appeared to poised to take a breather and snapped a two-session run as the continuing fiscal drama in the US left investors clueless,” analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment. The latest investment rate upgrade from Moody’s Investor Service nevertheless helped boost investors confidence, especially after the index tumbled by as much as 60 points during the session before clawing back to its closing level. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Calaycay said the three-day rally of the local equities suggest that investors might have shifted gear and are now bullish. “Prudence is still better. There are still many headwinds and obstacles along the way,” he said. Stocks in the 30-company index closed mixed. Among those picked up were Alliance Global Group, Inc., Metropolitan Bank and Trust Co., and heavyweight Philippine Long Distance Telephone Co.   

Eurozone recovery gathering momentum

 Economy
Oct 032013
 
Eurozone recovery gathering momentum

LONDON — Another round of eurozone economic data Thursday provided compelling evidence that the currency bloc’s recovery from recession has become broad-based and self-sustaining. Particularly encouraging was the news that retail sales across the 17 European Union countries that use the euro rose by a forecast-busting 0.7 percent in August, according to Eurostat, the EU’s statistics office. That added to the previous month’s 0.5 percent increase — itself revised higher — and was above market expectations for a more modest 0.2 percent increase. Retail sales are an important barometer of economic confidence as they show that consumers are more willing to spend rather than save for a rainy day. The figures came on the heels of a closely-watched survey finding economic output across the eurozone rose in September at its fastest pace since the summer of 2011. Financial information company Markit said its composite purchasing managers index — a broad gauge of business activity across the manufacturing and services sectors — rose to a 27-month high of 52.2 points in September. The increase from 51.5 in August takes the index further above the 50 threshold that indicates expansion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Thursday’s surveys are the latest in a string of indicators to suggest the eurozone economic recovery is gathering momentum. Earlier this week, Eurostat figures showed the number of unemployed fell for the third consecutive month in August, though the rate held steady. In the second quarter, the eurozone economy grew by a quarterly Read More …

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