Posts Tagged ‘life

12
Mar

Financial Stocks: Regional banks gain, Citi stock pares gains

SAN FRANCISCO (MarketWatch) — U.S. regional bank shares added to weekly gains Thursday, while Citigroup shares moved higher as investors cheered Chief Executive Vikram Pandit’s relatively upbeat outlook.

S&P 500 (1 YEAR)

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The gains in bank stocks helped the financial sector outperform the broader market. The Financial Select Sector SPDR Fund , an exchange-traded fund that tracks the financial stocks in the S&P 500 , rose 0.5% while the broader index added 0.2%.

Shares of Huntington Bancshares added 2.9%, Fifth Third Bancorp rose 2% and KeyCorp rose 2.8%.

Regional banks had rallied in the previous session after a report suggested Britain’s Barclays was hunting for a retail bank acquisition. Also, several bank executives were speaking at a Citi investment conference in New York City this week.

News Hub: Credit Markets Come Back to Life

Credit markets are showing signs of life after a year of lows and two years after the collapse of Bear Stearns auto loan. Grianne McCarthy tells the News Hub panel why U.S. companies are feeling more confident about the economy.

Citigroup shares climbed 4% to $4.12 after Pandit said that the banking giant should be able to cover future credit losses in its troubled local consumer lending business. There are “early signs of improvement” in the division, he said at the conference. See story on Citi CEO’s remarks

The stock came off its intra-day high of $4.16 after the CEO said the U.S. government may sell its 27% stake in the banking giant. See pulse on possible government sale of Citi stake

Citi shares have advanced 18% this week and 25% for the year-to-date, bolstered by reports Wednesday that a sale of trust preferred securities had gone well.

The SPDR KBW Bank ETF has benefited from the rally in Citi and other banks. That ETF is up about 19% for the year-to-date and is one of the best-performing ETFs in recent months. Read more about financial and bank ETFs

Earlier this week, the KBW Bank ETF hit a fresh 52-week high. On Thursday, it rose as high as $25.21. Its next hurdle is $25.44, which it last traded in November 2008.

Financial Stocks: Regional banks gain, Citi stock pares gains

02
Mar

Dividends on the rise after worst-on-record year

CHICAGO (MarketWatch) — After 2009 saw companies slashing or eliminating dividend payouts left and right, many American firms are beginning to cautiously reinstate — or even raise — theirs in this period of assumed recovery.

While shareholder payouts still lag versus 2008’s, more than a dozen of the S&P 500 have raised or initiated a dividend this year, while only two have decreased or suspended them. And the firms now offering higher payouts represent a wide range of industries, from Coca-Cola to Tiffany and P.F. Chang’s to T. Rowe Price .

And there could be more to come.

“We expect dividend payments to rebound in 2010, including those from the financial sector, as dividends are reinstated, since some companies now have both the ability and incentive to pay dividends,” said Jeffrey Kleintop of LPL Financial Research. “In the current environment, a boost to the dividend payment may signal more confidence in sustained growth by business leaders than their guidance on the earnings outlook, helping to lift stock prices along with the dividend payout.”

That comes after an especially rough spell as “the past two years have been tough on dividends,” Kleintop added. “In fact, 2009 marked the worst year on record for dividends since 1955, resulting in a 21% decline in dividends per share for the S&P 500 companies as a whole.”

In 2008 and 2009, 32 S&P 500 companies suspended their dividends, while only 11 initiated them, but 49 have raised or initiated dividends so far this year. One of the latest is Qualcomm , which announced late Monday that that its quarterly dividend would increase almost 12% to 19 cents a share.

‘2009 marked the worst year on record for dividends since 1955.’

Jeffrey Kleintop, LPL Financial Research

“The strength of our business model is enabling significant investments in our strategic business initiatives while returning capital to stockholders,” said Paul Jacobs, chief executive of the wireless-technologies firm, in announcing the hike. “Since commencing this program in 2003, we have returned $12.6 billion to our stockholders through a combination of dividends and stock repurchases payday advance online.”

For the month of February alone and for all reporting issues — not just the S&P 500 — dividend increases are up 29% from February 2009, although they’re still down 42% from February 2008, noted Howard Silverblatt, senior analyst at S&P Indices.

Regulatory deja vu

The SEC enacts a new rule limiting short sales, after finding an even stricter version ineffective in 2007. Dennis Berman and Evan Newmark discuss the shift.

“February is typically a good month, and this one has come through,” he said. “Actual cash payments are still down year-over-year, but at least it’s starting to go back up.” He added that he expects it will “most likely [be] 2012-13 until we reach 2008 levels.”

For the S&P 500, “it is the best month in two years, with a very impressive three-month run,” he continued. “I expect more good news, but not as much of it over the next few months; I also expect reductions to start next month.”

Josh Peters, editor of Morningstar’s DividendInvestor, said dividends “really bottomed out last summer after a spate of cutting we hadn’t seen since the Great Depression,” including one from Dow Chemical , for the first time in 97 years. At the same time, he noted that some of the mote stable consumer-focused companies, like McDonald’s and General Mills , “continued to raise theirs even during the crash.”

But over the last couple of months, “we have seen less-traditional payers deciding to raise their dividends,” including retailers, restaurant chains and tech firms, he said. “And assuming we don’t tip back into a double-dip recession, we should continue to see more dividend increases than cuts.”

Many companies will have to do so just to stay competitive against other issues in the stock market, he said, especially as more and more Baby Boomers near retirement.

“They have learned that stock prices don’t just go up, and they will want the reliable income,” Peters said. “Compared to 10 years ago, the idea of trying to live off capital gains is truly frightening.”

Dividends on the rise after worst-on-record year

26
Feb

Visteon turns in 4Q profit

VAN BUREN TOWNSHIP, Mich. – Auto parts supplier Visteon Corp. posted a fourth-quarter profit Friday, helped by cost-cutting moves and the hints of a recovery in the global auto industry.

Visteon said it earned $276 million, or $2.12 per share, after a loss of $346 million, or $2.67 per share in the year-ago quarter. The 2008 quarter was affected by a $200 million charge related to its business making interior parts for vehicles.

Sales grew 23 percent to $2.03 billion. The company said sales improved across all major regions where it sells parts, a trend Visteon said was a sign that industry and broader economic conditions are getting better.

Visteon, the top supplier to and a former subsidiary of Ford Motor Co sears kerosene heaters., filed for Chapter 11 bankruptcy protection in May following a sharp downturn in the U.S. market for cars and trucks. However, overall sales began to pick up last in 2009.

Cost-cutting measures from Visteon’s restructuring also helped the quarterly results. That included a $133 million gain from terminating some employee benefit programs.

For all of 2009, Visteon earned $184 million, or 98 cents per share.

Shares of Visteon, which trade on over-the-counter markets, more than doubled in morning trading, rising 7.6 cents to nearly 14.8 cents per share.

Visteon turns in 4Q profit

Hot News: Royal Bank of Scotland loses $5.5 billion in 2009

06
Feb

Earnings Preview: Lorillard Inc.

RICHMOND, Va. – Lorillard Inc., the nation’s third-biggest cigarette company, reports its fourth-quarter results before the stock market opens Monday.

WHAT TO WATCH FOR: Any sign the maker of Newport cigarettes is losing market share loss among menthols or gaining in the discount segment — and any sign that cigarette volumes are rebounding from sharp drops in volume experienced industrywide in 2009 due to a federal tax hike.

Analysts believe the Greensboro, N.C., company continues to have the industry’s best outlook for profit margin, price per pack and volume.

Despite the Food and Drug Administration’s pending study on the public health impact of menthol, the segment continues to grow as the rest of the cigarette market shrinks. A scientific committee being organized by the FDA must study and issue a report on the public health impact of menthol cigarettes.

The top two U.S. cigarette companies — No. 1 Philip Morris USA, owned by Richmond, Va business cards.’s Altria Group Inc., and No. 2 Reynolds American Inc., based in Winston-Salem, N.C. — are ramping up efforts to grab some of the menthol market away from Lorillard.

Lorillard is working to grow its Maverick discount brand as the weak economy and high unemployment have caused some consumers to switch to lower-priced brands.

WHY IT MATTERS: As demand for cigarettes continues to fall, any rebound in volumes could signal consumers are adjusting to April’s 62-cents-per-pack federal tax hike, which most cigarette makers accompanied with price hikes.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters on average expect Lorillard to earn $1.51 per share on revenue of $1.23 billion.

LAST YEAR’S QUARTER: Lorillard reported profit of $1.53 per share on revenue of $1.09 billion.

Earnings Preview: Lorillard Inc.

03
Feb

Obama pushes energy plan that GOP may support

WASHINGTON – Looking for a political and policy victory, President Barack Obama on Thursday pushed energy proposals designed to attract allies and opponents alike, calling for increased ethanol production and new technology to limit pollution from the use of coal.

Facing a Senate with a newly energized Republican minority, Obama has begun tailoring his energy policy to GOP-supported ideas, starting in his State of the Union address last week with calls for offshore oil drilling opposed by environmentalists and a bigger role for nuclear power.

The first-term president — politically weakened by the loss of the late Sen. Edward M. Kennedy’s seat to Massachusetts Republican Scott Brown — also has begun promoting his energy policy as a job-creating boost to the economy.

“Now, there’s no reason that we shouldn’t be able to work together in a bipartisan way to get this done,” Obama said during a bipartisan meeting with governors in the White House’s State Dining Room. “It’s good for our national security and reducing our dependence on foreign oil. It’s good for our economy, because it will produce jobs.”

He spoke as the White House released presidential task force recommendations calling on both Washington and the private sector to spend more money on biofuels like ethanol. The group said the nation likely will fall short of goals Congress has set for creating more environmentally friendly energy.

At the same time, the Environmental Protection Agency issued a new rule requiring U.S. companies to produce at least 13 billion gallons of renewable fuels this year — up from about 11.1 billion in 2009. The congressional goal is 36 billions gallons of renewable fuel by 2022.

EPA Administrator Lisa Jackson said the new rules would reduce oil dependence by million of barrels a year and “help bring new economic opportunity to millions of Americans, particularly in rural America us fast cash.”

In his meeting with the governors, Obama also announced a new task force to study ways to increase the use of coal in meeting the nation’s energy needs without increasing the pollution that contributes to global warming.

“It’s been said that the United States is the Saudi Arabia of coal, and that’s because … it’s one of our most abundant energy resources,” Obama said. “If we can develop the technology to capture the carbon pollution released by coal, it can create jobs and provide energy well into the future.”

Washington Gov. Christine Gregoire said the president told coal-state governors he understood their resistance to change when coal suppliers in their states are making money. She said Obama urged them to be partners in developing clean coal alternatives, a proposal that was embraced by many Republicans in the room.

“There was consensus around, let’s see if we can develop a clean coal strategy of the future,” she said.

The White House meeting comes a day after Obama signaled a willingness to separate a controversial cap-and-trade proposal aimed at limiting carbon pollution from more attractive green energy jobs and energy efficiency proposals. The House approved the anti-pollution measure last year as part of a comprehensive energy bill, but it is unlikely to win Republican support on Capitol Hill.

Energy has been a major part of the president’s domestic agenda since he took office, but it has taken on new urgency in the wake of Brown’s victory in Massachusetts as both the president and his Democratic allies on Congress look ahead to the fall elections.

___

Associated Press Writer Julie Pace contributed to this report.

Obama pushes energy plan that GOP may support

Hot News: Bernanke voices economic concerns as hes sworn in

28
Jan

Europe Markets: European shares higher after Fed comments

LONDON (MarketWatch) — European shares advanced on Thursday, with investors getting their first chance to react to the U.S. Federal Reserve’s more upbeat comments on the U.S. economy.

The pan-European Dow Jones Stoxx 600 index , which dropped on Wednesday for the fifth time in six sessions, advanced 1.2% to 250.18.

Miners and banks were among the best performers as recent fears about global economic trends appeared to recede, with Santander shares up 2.3% and Xstrata shares up 2.2%.

Global Dow

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On Wednesday after the European close, the Federal Reserve kept official interest rates unchanged. In its description of the economy, the Fed was slightly more upbeat. Read more on Fed.

“The U.S. Federal Reserve said that there was an improvement in U.S. business spending, adding that the “recovery is likely to be moderate for a time”– a significant change from its characterization of “weak growth” cited in previous statements,” said analysts at MF Global.

Of other regional equity markets, the U pay day loan lenders.K. FTSE 100 index rose 0.8% to 5,259.93, the German DAX index rose 1.1% to 5,705.17 and the French CAC-40 index climbed 1.1% to 3,799.60.

The move in Europe followed gains in Asian equity trading. U.S. stock futures were pointing to moderate gains on Wall Street.

Corporate news was also providing European investors with reasons to be upbeat.

Shares of Swedish fashion chain Hennes & Mauritz jumped 7.4% after its fourth-quarter net profit rose to 6.15 billion Swedish kronor ($844 million), from 5.09 billion kronor a year ago, beating analyst forecasts.

Revenue, excluding sales tax, rose 13% to 18.58 billion kronor, against 16.41 billion kronor in the year-ago period. H&M also said total sales for the month of December rose 15% and 3% on a comparable basis.

Shares of British Sky Broadcasting climbed 2.7% after its first-half net profit rose to 256 million pounds ($415.1 million), from 166 million pounds a year ago. Sales rose to 2.87 billion pounds, from 2.6 billion pounds last year, as strong growth in subscription revenue offset weakness in other categories.

Customer net additions were 172,000 in the second quarter, taking the total base to 9.7 million.

Europe Markets: European shares higher after Fed comments

25
Jan

Geithner warns of Bernanke fallout

Treasury Secretary Timothy Geithner warned that the financial markets would view a Senate rejection of Ben Bernanke's renomination as "very troubling" but said he's sure the embattled Federal Reserve chairman will prevail.

"We're very confident that the chairman will be reconfirmed by the Senate, and we think it's very important he be reconfirmed by the Senate," Geithner said Friday in an interview at the Treasury for POLITICO's new video series, "Inside Obama's Washington," debuting Monday.

"He's done a remarkable job of helping steer this economy out of the great recession. And I think he'll play a very important role in helping in the success of our efforts to try to make sure we are bringing this economy back to durable growth."

Asked about possible market reaction to a defeat, Geithner said: "I think the markets would view that as a very troubling thing to the economy as a whole. But, as I said, I don't think they should be uncertain. I think they should be confident because we are very confident he will be reconfirmed."

Bernanke is having such a rough time, Geithner suggested, because the country is "in a moment where people are incredibly angry and frustrated by the damage this crisis caused."

"You see that across the country," Geithner said. "That's perfectly understandable, and everybody involved in this effort is bearing a lot of the brunt of that frustration and anger."

The Bernanke nomination is the latest headache for the nation's 75th Treasury secretary, who has kept his dry sense of humor while juggling some of the Obama administration's highest-stakes crises — winding down financial bailouts and trying to get banks lending again, instilling confidence despite data that are mixed at best and serving as a public face (and sometimes punching bag) for an economic team often accused of being too close to Wall Street.

He sees his biggest challenge as getting the right incentives in place to help spur private-sector job creation through tax, export and research-and-development policies. And he continues to shepherd the financial reregulation that was a centerpiece of President Barack Obama's first-year agenda. The House has passed a version, and the Senate will continue working on it this winter.

Geithner is most grateful that his strategy to bring private capital in to stabilize the markets has worked effectively. Banks have raised about $200 billion in nongovernment equity and debt, effectively taking the government out. Last year, most everyone assumed the U.S. would have to pony up a lot more taxpayer money. In fact, the government has gotten most of the bank money back and is on track to make a profit on that part of the bailout. Treasury’s view is that without that stability in the system, no progress on the broader economy would have been possible.

Geithner, 48, came up as a staff guy, working in three administrations for five Treasury secretaries. And he was president and CEO of the Federal Reserve Bank of New York during the financial meltdown of 2008. So this is the second time that he's been one of a handful of officials charged with staving off a depression.

Despite the sudden pressure from Bernanke's renomination, Geithner chatted calmly in the Treasury's Diplomatic Reception Room. He joked that he'd like to do a segment explaining the economy on ESPN's "SportsCenter" (he can't tell the anchors apart) and was looking forward to a birthday dinner with his wife, Carole, at Rasika, a hip Indian restaurant in Penn Quarter.

The question hanging over the pleasantries: Is there any way that Bernanke could lose?

"I don't believe so," Geithner replied. "We are very confident that this will happen, and he will have the support he needs to continue in this important role."

On Saturday, Obama made what a White House aide called "a few check-in calls to senators and members of leadership to make sure Bernanke was on track, and he was assured he was."

The White House was rushing to shore up Bernanke as the stock market was dropping, after Obama's announcement that he wanted further restrictions on the activities of the biggest banks. Geithner rejected the banks' contention that the proposed rules could mean thinner markets and less money available for lending.

"That's the argument you're always going to hear when you try to change things," he said no fax pay day loan. "But I do not believe that there is a credible risk of that in the reforms we are pursuing."

One of the most surprising — and persistent — critics of the administration's economic team has been Arianna Huffington, founder of The Huffington Post, who has taken a boisterously populist tack that includes a Move Your Money campaign to get depositors to move their money from big banks to neighborhood banks.

Geithner didn't endorse her idea. But he did say that customers of financial institutions "should be very demanding in the kind of service they expect, the kind of products they get, the disclosure banks offer to basic fairness and dealings."

"I'm very supportive of customers of banks, other investors of banks, creditors of banks holding them to very high standards — that's something that's very appropriate," Geithner said. "I'm not concerned about her campaign, and I agree with the basic principle … that we've been through a period where I think people are right to expect more of their financial institutions."

Huffington had an off-the-record dinner with Geithner shortly after Thanksgiving and gave him some advice he clearly has not taken. Dodging a question about their conversation, the secretary said that his approach of "trying to fix [the system] quickly and cleanly" should have appeal for both ends of the political spectrum.

"If you're on the right, you should be relatively pleased with our strategy, because we were able to pull the government out of the financial system much more quickly than people thought," he said. "We have a much, much smaller footprint today than when I came into office. And if you're from the left, you should be able to look at the strategy and say, by solving this today at much lower cost, we have more resources available to do things that many people think are important for the government to do better."

Other key points by Geithner:

— On whether he remains confident a clear recovery will be under way by this spring: "Very confident. The economy is healing. It's growing. It's more broad-based. You see the classic signs of greater confidence among consumers and businesses now. They see stronger orders. So I think we've been successful in breaking the momentum of the worst recession in generations. But this crisis caused a lot of wreckage.There's still a lot of damage out there. Unemployment is still very, very high, and we have a lot of work to do to make sure that we're restoring confidence, getting people back to work, making businesses comfortable to make the kind of decisions that are necessary to grow the economy. … I think most business economists, most businesses, would say now that you'll probably start to see positive job growth sometime in the spring."

— On when people are going to start to feel better about the economy: "The turn really came in the second quarter of last year — really in the spring and early summer. That's when the economy started to bottom. That's when the financial markets started to show the classic signs of confidence and hope. And there's been a steady, gradual improvement since then. … I just want to emphasize that this crisis caused an enormous amount of damage not just to people's lives and to businesses but to their confidence in how this country is being run. And we need to restore that, rebuild that. That's going to take a lot of effort over time."

— On his philosophy for the job: "The most important thing — and the really only source of credibility and confidence — is to be honest with people about the challenges we face, to try to be open about how we think it's best to solve them and then to act."

— On his own job security: "I'm going to do this as long as the president wants me to help contribute to fixing this mess, and I'm very proud of what he's been able to accomplish in this first year under enormously difficult conditions."

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Geithner warns of Bernanke fallout

24
Jan

India carmaker Maruti profit triples

NEW DELHI (AFP) – India's biggest carmaker Maruti Suzuki said Saturday its quarterly net profit more than tripled as it announced plans to increase capacity to maintain its dominance of the domestic market.

Maruti, majority owned by Japan's Suzuki Motor Corp, said net profit during the fiscal third quarter soared to 6.88 billion rupees (149 million dollars) from 2.14 billion rupees a year earlier.

The performance, fuelled by cheap loans and a reviving domestic economy, beat analyst expectations that profit for the three months to December would be around 5.8 billion rupees.

"This has been a good quarter," said Maruti's chief financial officer Ajay Seth, as he announced the company would expand capacity to defend its market leadership position from global rivals and meet increasing domestic demand.

A host of vehicle makers from General Motors to Renault and Toyota have unveiled plans for car launches in India to grab a larger slice of the fast-growing market and counter sluggish demand in developed countries.

India is now Asia's third-largest car market, outstripped only by China and Japan, and is one of the few countries where automobile sales are rapidly increasing. Car sales jumped 19 percent last year to 1.43 million units.

Maruti, which sells about one in two cars in the country, said sales jumped 62.5 percent to 73.34 billion rupees.

Seth said Maruti planned to invest 17 billion rupees to make 250,000 more cars each year from April 2012, increasing total capacity from one million units.

The expansion would take place at Maruti's plant at Manesar near the Indian capital.

Seth said Maruti could further ramp up capacity "if there is a need later no fax cash advances."

The car manufacturer attributed the profit increase partly to government stimulus measures aimed at helping the industry ride out the global economic slump.

The measures have put more money into the hands of India's growing middle class.

"Favourable conditions in the domestic market supported by the government's stimulus package and ease of automobile finance helped achieve good sales," the company said in a statement.

Nearly four-fifths of cars in India are bought using loans.

The central bank has cut interest rates to record lows to cushion the impact of international financial slump.

Maruti's domestic sales in the quarter jumped by 38 percent to 218,910 units while exports soared by 167 percent to 39,116 vehicles, spurred by European government incentives to scrap ageing vehicles.

Seth said the company was "cautiously optimistic" about sales volumes in the fourth quarter but added rising commodity prices would put pressure on profit margins.

"We also have to keep in mind interest rates may rise (as the domestic economy recovers) and it is important that government incentive measures stay in place" to help keep the market buoyant, he told AFP.

Passenger car sales are forecast to reach two million this year and are expected to triple in the next decade, boosted by higher incomes in the country of 1.2 billion people, according to industry estimates.

India carmaker Maruti profit triples

17
Jan

Sponsor Takes the Next Step in Tennis

LAS VEGAS — Fernando Verdasco was straining against a leg-press machine as he raised 710 pounds, yet his strength and conditioning coach, Gil Reyes, was making the most noise. Reyes bellowed in two languages as Verdasco, a Spanish tennis star, raised the massive load 14 times before Reyes finally shouted at him to stop.

“He’s a beast,” Reyes said last month. “I stopped him because I didn’t want him to break down. If he totally maxed out today, there’s a good chance it would throw him off stride tomorrow or the next day.”

Reyes, an American who speaks in the tones and rhythms of an evangelist, was Andre Agassi’s trainer and protector for nearly 20 years. He is now a company man: one of three pillars of the unusual player-development program created and financed by Adidas.

The other pillars are Sven Groeneveld, a veteran Dutch coach who started the program in 2006, and Darren Cahill, an Australian coach who with Reyes helped Agassi keep scaling the heights into his mid-30s.

Groeneveld is based in Amsterdam, and Reyes and Cahill in Las Vegas, the program’s training base. Reyes still works out of his private gym decorated with Agassi’s eight Grand Slam singles trophies and 1996 Olympic gold medal. Agassi remains a frequent visitor and is also an occasional hitting partner and counselor for the players.

But the program’s scope is broader, with Groeneveld and Cahill traveling to tournaments worldwide to offer on-site assistance with Groeneveld’s assistant Mats Merkel.

The executive who devised and supervises the operation is Jim Latham, an American expatriate and former Duke tennis player who saw the program as a way to protect his company’s investment in increasingly young athletes who sometimes lacked structure and expert advice.

“It’s a compact, mobile tennis academy,” said Latham, the head of global sports marketing for tennis at Adidas.

It is also a delicate diplomatic mission in a cutthroat, territorial sport unaccustomed to coaches spreading the wealth of their knowledge democratically or to manufacturers striving to be more than suppliers of apparel and juicy contracts.

“It’s a given that we had to have elite-level coaches,” Latham said. “But the other given for me was that it had to be people who were great communicators, who could go into it with all these people and make them feel included, rather than ‘my way or the highway.’ ”

Manufacturers’ teams are the foundation of sports like Formula One auto racing. But the Adidas developmental team remains unique in tennis, and though it is not without detractors who question its part-time approach, it is playing an increasingly visible role in the sport and has been involved in some big hits as well as misses.

The hits include Ana Ivanovic’s victory at the 2008 French Open and rise to No. 1, and Verdasco’s surprise run to last year’s Australian Open semifinals and rise into the top 10. The team, Groeneveld in particular, also provided counsel and support to Caroline Wozniacki, a Danish teenager coached primarily by her father who broke into the top four last year after reaching the United States Open singles final.

The misses include players like Evgeny Korolev, Anna Chakvetadze, Marcos Baghdatis and Sania Mirza, whose rankings and singles careers have not prospered. Ivanovic also dropped out of the top 10 after a mediocre 2009 season but spent the off-season working primarily with Groeneveld.

National tennis federations have long been involved in developing talent and providing coaching at the professional level. Some private academies have done the same.

But no other company has yet plunged in, and what also makes Adidas’s program unusual is that it does not attempt to be full service, but rather a consultancy business card design.

Latham said Adidas had contracts with about 75 players, more than 40 of whom are in the singles draws at the Australian Open beginning Monday. Luminaries like Jo-Wilfried Tsonga and Justine Henin have not sought help, but Latham estimated that 30 to 35 players have had some contact like seeking a quick tip from Groeneveld or training in Las Vegas, which requires an invitation from Latham.

Working with multiple players reduces a coach’s vulnerability and dependency.

“These guys can give unsugarcoated advice,” Latham said of his team.

But the Adidas principals emphasized that their input should be supplemental and that they wanted top players to have full-time coaches.

“This is not about a threat, this is not about better than, or instead of, it’s a matter of one plus one maybe might equal three,” Latham said.

But Verdasco and Ivanovic thrived under the system when they were without full-time coaches. Patrick Mouratoglou, who owns a prominent academy in France, said that he tried to play a similar role to many players but that he felt it undermined their relationships with their personal coaches. He now focuses on one or two players.

“I don’t doubt the quality or competence of Sven or any member of the team,” he said. “I just think the system is flawed. I stopped doing it. At first, you feel good because everyone loves you, and you give a bit to everyone, and everybody wants you on their court giving input. It’s a drug. If you need affection, it’s amazing. If you want results, it doesn’t work.”

Cahill said that he was sensitive to personal coaches’ concerns but that the benefits of exchanging thoughts and challenging preconceptions outweighed the negatives.

He had other options. Early last year, he trained on a trial basis with Roger Federer in Dubai. But Cahill, who has two children and increasingly strong ties to Las Vegas, said he was not prepared to handle the travel commitment Federer required. Instead, Cahill joined Adidas last March while continuing to do television commentary for ESPN and to work with Agassi’s foundation in Las Vegas.

Latham said the team’s existence has helped Adidas recruit several players, including Daniela Hantuchova, a 26-year-old Slovak who trained with Cahill and Reyes in the off-season. But Latham and Baghdatis failed to reach an agreement, and Baghdatis is no longer under contract.

Verdasco, 26, who won a warm-up event Saturday in Australia, is definitely still with the program: exchanging embraces and fist bumps with Reyes during intense training sessions. He is seeking a second home in Las Vegas to be closer to Reyes and his weights.

Reyes prefers to work one on one, so visitors are limited to three at a time. From the outside, his gym looks like a suburban home. It is in a gated community on a road named after Agassi, who built a house next door for his parents as well as a practice court. The carpeted weight room is filled with machines Reyes designed and built himself for Agassi because nothing tennis specific enough existed.

“If this is the future, I don’t really know,” Verdasco said of the Adidas program. “But of course it really helped me a lot, because I really found Gil that I have this strong connection with. Maybe if Adidas took another guy, maybe I wouldn’t have that same connection, and maybe I wouldn’t like it as much.”

Sponsor Takes the Next Step in Tennis

07
Jan

Wall St dips after ISM services, ADP jobs data

NEW YORK (Reuters) – U.S. stocks slipped on Wednesday after ISM data showed the U.S. services sector grew in December, but at a marginal pace, and a report said the rate of job losses slowed at U.S. private employers.

The Institute for Supply Management said its services index rose to 50.1 in December from 48.7 in November. The reading was below economists' forecast of 50.5, according to a Reuters survey. A reading above 50 indicates expansion.

"Pretty much right on spot," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"The market seems like it wants to go higher, but we will need confirming numbers on Friday morning. In the meantime, precious little will take place."

The non-farm payrolls report from the U.S. Labor Department is due on Friday, with economists now forecasting 8,000 jobs lost overall in December versus the 11,000 lost in November.

Earlier data on Wednesday in the ADP Employment Services report, a precursor to Friday's payrolls report, showed job losses slowed in December from November's pace. The ADP data showed the private sector lost 84,000 jobs in December, down sharply from the 145,000 jobs lost in November, but exceeding economists' forecasts for a December loss of 73,000 jobs.

The Dow Jones industrial average (.DJI) dipped 7.26 points, or 0.07 percent, to 10,564.69. The Standard & Poor's 500 Index (.SPX) shed 1.08 points, or 0.10 percent, to 1,135.44. The Nasdaq Composite Index (.IXIC) slipped 7.13 points, or 0.31 percent, to 2,301.58.

Earlier, two of the three major indexes hit fresh 52-week highs. The S&P 500 climbed to an intraday 52-week high at 1,138.17, and the Nasdaq advanced to an intraday 52-week high at 2,314.07.

Weighing on the Dow was Travelers Companies (TRV cheap credit report.N), down 1.7 percent at $47.79, after FBR cut the stock of the auto and home owners' insurer to "market perform" from "outperform."

But 3M Co (MMM.N), up 2.1 percent at $84.20, supported the Dow after Goldman Sachs added the stock to its Americas "conviction buy" list and said stronger-than-expected results in October-November likely continued for the diversified manufacturer in December.

Another bright spot came from Family Dollar Stores Inc (FDO.N), which shot up 11.6 percent to $30.68 after the retailer reported first-quarter earnings that beat expectations. Rival 99 Cents Only Stores (NDN.N) climbed 7.4 percent to $14.34.

In contrast, Walgreen Co (WAG.N) shed 0.5 percent to $36.80 after the retailer said sales at its drugstores open for at least a year fell in December instead of rising as Wall Street had expected.

Dow Chemical Co (DOW.N) jumped 2.2 percent to $31.14 after Barclays Capital upgraded the stock to "overweight" from "equal-weight."

U.S. Senate Banking Committee Chairman Christopher Dodd was expected to announce he will not seek re-election, sources said. The Connecticut Democrat has been dogged by questions over his financial industry connections and faces a tough re-election bid. The S&P Financial Index (.GSPF) added 0.4 percent and the KBW Bank Index (.BKX) rose 1.2 percent.

At 2 p.m. (1900 GMT), the Federal Open Market Committee will release minutes from its mid-December meeting.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

Wall St dips after ISM services, ADP jobs data

05
Jan

Giant Tuna Fetches $177, 000 at Japanese Auction

Filed at 6:29 a.m. ET

TOKYO (AP) — A giant bluefin tuna fetched 16.3 million yen ($177,000) in an auction Tuesday at the world’s largest wholesale fish market in Japan.

The 513-pound (233-kilogram) fish was the priciest since 2001 when a 440-pound (200 kilogram) tuna sold for a record 20.2 million yen ($220,000) at Tokyo’s Tsukiji market.

The gargantuan tuna was bought and shared by the owners of two Japanese sushi restaurants and one Hong Kong-based sushi establishment, said a market representative on condition of anonymity because he was not authorized to disclose the information.

Caught off the coast of northern Japan, the big tuna was among 570 put up for auction Tuesday. About 40 percent of the auctioned fish came from abroad, including from Indonesia and Mexico, the representative said.

Japan is the world’s biggest consumer of seafood with Japanese eating 80 percent of the Atlantic and Pacific bluefins caught no faxing 1 hour payday loans. The two tuna species are the most sought after by sushi lovers.

However, tuna consumption in Japan has declined because of a prolonged economic slump as the world’s second-largest economy struggles to shake off its worst recession since World War II.

”Consumers are shying away from eating tuna … We are very worried about the trend,” the market representative said.

Apart from falling demand for tuna, wholesalers are worried about growing calls for tighter fishing rules amid declining tuna stocks.

The International Commission for the Conservation of Atlantic Tunas in November slashed the quota for the 2010 catch by about one-third to 13,500 tons (12,250 metric tons) — a move criticized by environmentalists as not going far enough.

Giant Tuna Fetches $177, 000 at Japanese Auction

03
Jan

Business Briefing | Labor: Contract Talks at Chilean Copper Mine Break Down

Union representatives for Codelco’s Chuquicamata copper miners in Chile said that last-minute contract talks broke down, ending an effort to head off a strike set to begin on Monday. Negotiations had resumed on Friday, the last day of the current contract, according to a union official, Miguel Lopez. “We are not going to sign today,” Mr. Lopez said by telephone. “We will just have to carry out the strike.” Chuquicamata is part of the state-owned Codelco’s Norte unit, which accounted for almost half of the company’s copper output of 1 payday advance.55 million metric tons in 2008. Codelco is one of the largest copper producers in the world. Worldwide production this year is estimated at 18.1 million tons, according to Barclays Capital.

Business Briefing | Labor: Contract Talks at Chilean Copper Mine Break Down