Twitter Day: Ed’s Daily Notes for November 7th   Leave a comment

Yahoo Finance: Twitter prices IPO at $26 per share

Twitter, the quirky 140 character messaging service that’s become a global phenomenon, priced its initial public offering at $26 per share, valuing the seven-year-old company at over $18 billion.

Twitter (TWTR) will raise $1.8 billion to fund future expansion by selling 70 million shares, which will open for trading on Thursday morning on the New York Stock Exchange. Some analysts say the shares are worth $50 or more, so the price could explode higher once trading begins.

If I can get in it at the very beginning of trading, and then sell the shares a minute or so later at a profit, I might do it. Otherwise, I am not really interested in Twitter as a stock. As popular as Twitter is, how can they NOT be profitable yet? Right now, it is just daytrade fodder.

France 24: China seeks world role for ‘people’s money’

With deals from London to Singapore, China is seeking a greater role for its yuan currency in global markets to challenge the hegemony of the almighty dollar.

The most attention-grabbing reform planned for Shanghai’s new free trade zone is free convertibility of the yuan — also known as the renminbi, or “people’s money” — an unprecedented change which would allow greater use of the currency.

But no timetable has been specified, and a true contest between Mao Zedong, Communist China’s founding father whose face is emblazoned on most yuan notes, and Benjamin Franklin on the $100 bill will be years in the making.

This isn’t exactly news. The key here is the patience Chinese authorities are showing in this. It won’t happen overnight, or even in the next year. But don’t be surprised if we wake up 10 years from now and find the yuan is the new world reserve currency.

Bloomberg: European Stocks Decline Before ECB Interest-Rate Decision

The rest of what you need to know today:

European stocks declined from their highest level in more than five years, as investors awaited the European Central Bank’s interest rate decision. U.S. index futures were also little changed, while Asian shares fell.

…The ECB will announce its interest-rate decision at 1:45 p.m. in Frankfurt, with President Mario Draghi scheduled to hold a press conference 45 minutes later. Three of 70 economists’ estimates compiled by Bloomberg forecast the central bank will cut its benchmark interest rate to 0.25 percent from 0.5 percent. In a separate survey, eight of 38 economists called for interest rates to be lowered in December.

In another decision at noon in London, the Bank of England will maintain its key interest rate at 0.5 percent and its asset-purchase target at 375 billion pounds (($603 billion), according to the median forecast of economists surveyed by Bloomberg.

In the U.S., Commerce Department data at 8:30 a.m. in Washington may show the world’s biggest economy expanded at a 2 percent annualized rate in the third quarter after a 2.5 percent pace in the previous period, according to the median forecast of economists in a Bloomberg survey.

According to Bloomberg, the consensus range for U.S. GDP is from 1.5% to 2.7%. Based on corporate earnings reports so far, I would be surprised to see the GDP report come in on the high end. 2% or less sounds about right to me.


Posted November 7, 2013 by edmcgon in Daytrading, Economy, Market Analysis, News, Stocks

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