I will not write about Europe. I will not write about Europe. I will not write about Europe.
Samsung Electronics Co expects sales of its new Galaxy S III, launched at the end of last month to top 10 million during July. It also predicted earnings from its handset division would be higher in the current second quarter than in January-March.
You see, when I put my mind to something, I can do it! Yes, sir, there are other market topics out there aside from Europe, and besides, even if I write about Europe, I can quit any time.
Shares of Lenovo Group Ltd, the world’s No.2 PC maker, fell by more than 6 percent to a more than four-month intraday low on market concern over the outlook for the PC market amid the global economic slowdown.
Okay, market players, what about the interesting dichotomy above? The market believes PC sales will slow because of the global economic shutdown, yet Samsung is selling phones hand over fist, and, oh, they are selling them to Western Europeans.
Research firm IDC said that Samsung had usurped Nokia to become the biggest handset vendor in the Western European market … The western European handset market has returned to growth after three quarters of consecutive declines, according to research agency IDC.
No! I will not write about Europe. I am my own master. I control my destiny. I can choose.
The Commerce Department said Monday that sales of new homes increased 7.6 percent in May from April to a seasonally adjusted annual rate of 369,000 homes. That’s the best pace since April 2010, the last month that buyers could qualify for a federal home-buying tax credit.
Interesting news this is, even if the total numbers are less than half of what makes a healthy new-home market. Actually, the best part of the news is that the homes sold without the allure of a tax credit. The other best part is that this is another boost to the economy. Statistically speaking, each new home built creates three full-time jobs for a year and it adds on average $90,000 to local tax coffers. Let me see … If those homes were just built, the impetus to the economy would be thus – 1.1 million jobs and $33 billion in tax revenue – but the homes were not just built, so that impetus has already been injected (think money flow). In order to project the impact, then, one must look at supply. Ergo this is what market players should be looking at.
Just 145,000 new homes were for sale in May. That’s not much higher than the 144,000 available in April, which was the lowest supply on records dating back to 1963.
Economics 101 tells us when supply is down and demand is up, prices rise, and when prices rise, suppliers (i.e. home builders) begin adding more supply to meet the demand (think construction).
The European Central Bank took a supportive step on Friday, relaxing its collateral rules to let financial institutions pledge a wider range of assets in exchange for cash. The move helps counter the impact of credit rating downgrades.
Okay, I slipped, but I can quit, if I want to; I just don’t want to quit right now. I will quit when I am ready, and if you would just stop nagging me, I might not want to write about Europe every day.
Trade in the day; Invest in your life
