Earnings ahead! Ed’s Daily Notes for January 13th   5 comments

This is a big week for earnings reports, with a lot of the TBTF banks reporting this week:

TUESDAY: Wells Fargo (WFC), JPMorgan (JPM)
WEDNESDAY: Bank of America (BAC)
THURSDAY: Citigroup (C), Intel (INTC), American Express (AXP), Goldman Sachs (GS)
FRIDAY: General Electric (GE), Schlumberger (SLB), Morgan Stanley (MS)

Bloomberg: Spain Refit Erodes China Edge as Business Lured Back Home

Spain is suddenly looking a little better:

Almost 10 years ago, Priviet Sportive SL was losing business to Chinese suppliers. These days, the Spanish clothes designer is snatching orders back as falling wages at home let it produce garments at a lower cost.

“During the construction boom, women in the villages weren’t interested in earning 700 or 800 euros a month,” said General Manager Daniel Alcazar Barranco. “Now, people are unemployed, with their backs against the wall. Families need the wages that seemed ridiculous back then.”

The company expects to post 2013 revenue of 15 million euros ($20 million) after sales slumped to almost half that in the late 2000s. Customers such as El Corte Ingles, Spain’s largest retailer, are among department chains turning back to domestic suppliers to avoid China’s longer delivery times and rising labor costs. Automakers too are expanding in Spain as wage costs fell in 2012 for the first time in three years.

Spain’s allure suggests new growth drivers are helping the euro region’s fourth-largest economy overcome a downturn, less than two years after the debt crisis raised questions about whether it could stay in the euro. It’s on the leading edge of a move toward competitiveness in such other hard-hit countries as Greece and Portugal, which also are narrowing the cost gap with China.

WND.com: Obama donor wins bid to take over HealthCare.gov

This is how the U.S. government works:

On Friday it was reported Accenture, a global consulting firm, obtained the $45-million contract to run the Obamacare health insurance website. The company is taking over from CGI Federal, one of two contractors that originally built the problematic HealthCare.gov portal, with CGI’s contract set to expire on Feb. 28.

Unmentioned in the scores of news articles covering the successful Accenture bid is that Obama is the top all-time recipient of the firm’s many financial contributions, with the president taking in a total of $286,168 from Accenture employees, family members and its political action committee.

The U.S. should change it’s motto to “Show me the money”…


Posted January 13, 2014 by edmcgon in Market Analysis, News, Stocks

5 responses to “Earnings ahead! Ed’s Daily Notes for January 13th

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  1. No offense but if you think $286k in contributions to Obama even moved the needle for the healthcare.gov re-compete and tier III maintenance contract then you do not understand bidding on government contracts at all. It is sort of like the idiots that said because CGI had a VP that was a former roommate of Michelle Obama that had something to do with them landing the initial healthcare.gov contract in the first place.


    • Robb,
      I work for a defense contractor. In my industry, it is a cliche that campaign donations are a cost of doing business. I can’t speak for your industry.

      • Hiring Accenture is not crony capitalism. There is an old government cliche, “you will never get fired for hiring Accenture”. It might cost more than you originally expected but Accenture has a very good track record for delivery.

        Defense contractors contribute to both sides. There are certainly instances where crony capitalism come into play but the fact of the matter is that 45 million is chump change in the overall scheme of things for a company the size of Accenture. After a high profile disaster HHS went with a safe pick.


  2. Really so old crony politics doesn’t have a thing to do with it?!? Really Robb I that you are a little naive

    • I happen to bid and execute on government contracts for a living so unlike the majority of folks I actually know what I am talking about.
      Accenture actually has a fairly good track record delivering on these large government contracts and was definitely a safe pick.


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