That means ALU in the USA should close at $3.48... The close in Paris is 2.525 euros. The exchange rate is $1.38. (1.38 x 2.525 = 3.48)
Top Stock News
Samsung net profit surges 25%. Samsung's (SSNLF, SSNGY) Q3 net profit, excluding minority interest, jumped 25% to 8.05T won ($7.76B) and topped forecasts of 7.94T won, while sales climbed 13.2% to 59T won. Samsung's growth was driven by its mobile unit, where operating profit rose 19% to 6.7T won, and its chip division, whose earnings more than doubled to a three-year high of 2.06T won. Samsung expects an extra $1.5T won payment from Corning (GLW) after the latter recently agreed to acquire the South Korean company's display unit out of their LCD glass joint venture.
IMO this is good for ALU... mobile sales rising means more congested networks. Surging profits could mean easy availability of cash for bidding on things like ... ALU's wireless unit.
October 22, 2013: The latest update of the Evolution to LTE report from GSA (Global mobile Suppliers Association) confirms that 222 operators have commercially launched LTE services in 83 countries. 109 LTE networks were commercially launched in the past 12 months.
The report confirms that 474 operators are investing in LTE in 138 countries. This is made up of 421 firm operator commitments to build LTE networks in 128 countries, plus 53 additional operators engaged in various trials, studies, etc. in a further 10 countries.
From amongst the committed operators, 222 have commercially launched networks in 83 countries. GSA forecasts there will be 260 commercial LTE networks in 93 countries by end 2013.
The report includes an extended list of operators who have commercially launched, or are deploying or planning enhancements to their networks including multicarrier support for Category 4 operation (150 Mbps peak downlink throughput speed), and LTE-Advanced features, particularly carrier aggregation.
The majority of LTE operators have deployed the FDD mode of the standard. The most widely used band in network deployments continues to be 1800 MHz (band 3) which is used in 43% of commercially launched LTE networks. The next most popular contiguous bands are 2.6 GHz (band 7) used in 30% of networks, followed by 800 MHz (band 20) which is used in over 12% of networks today.
Interest in the TDD mode is strengthening and global. 23 LTE TDD systems are commercially launched in 18 countries, of which 11 that have been deployed in combined LTE FDD & TDD operations.
Alan Hadden, President of the GSA, will moderate a high-level industry panel at ITU Telecom World in Bangkok, Thailand next month on spectrum allocation for mobile broadband.
PSI2: The Impact of Spectrum Options on Device Availability Thursday, 21 November 2013, 14:15 - 15:45, Jupiter 9
Speaking ahead of the panel session, Hadden said: " Having globally aligned spectrum bands is a great result for end consumers, as these make international roaming easier, and help drive early device availability. Adoption of the APT700 MHz band plan represents a major opportunity for regional and global spectrum harmonization that could deliver the benefits of economies of scale for end-user devices.”
Further information about the APT700 band plan, ITU Telecom World 2013 and the panel session are included in the report.
Ericsson Profit Margin Falls Short as Rivals Weigh on Sales ... By Adam Ewing - Oct 24, 2013 7:15 AM ET
Ericsson AB (ERICB), the largest maker of wireless-network equipment, reported a profit margin that missed analysts’ estimates as competition intensified and carriers slowed investments. The stock slumped. Third-quarter gross margin, a key measure of profitability, was 32 percent, Stockholm-based Ericsson said today. Analysts predicted 33.4 percent, the average of estimates compiled by Bloomberg. Sales fell 2.9 percent to 53 billion kronor ($8.3 billion), trailing the average projection of 54.3 billion kronor, and were also hurt by currency swings.
Business slowed in the U.S. and Japan where projects to make wireless carriers’ networks speedier are nearing completion. Margins are under pressure as the company tries to fend off competition from China’s Huawei Technologies Co. and Finnish Nokia Oyj (NOK1V)’s networks business. “The projects that peaked in the first half in North America are starting to have an effect,” said Fredrik Thoresen, an analyst at DNB ASA in Oslo with a hold rating on the stock. Slowing sales in North America, a high-margin region for Ericsson, bring down its profitability, he said.
Ericsson fell as much as 8.1 percent, the biggest intraday decline in almost two years, and dropped 7.2 percent to 78.2 kronor at 1:10 p.m. in Stockholm, wiping out $3.1 billion in value. The stock had gained 29 percent this year through yesterday.
Third-quarter net income of 2.92 billion kronor missed the 3.07 billion kronor average analyst estimate. Profit rose 34 percent from the year-earlier period, helped by lower costs and the company exiting an unprofitable chip venture with STMicroelectronics NV. (STM)
Alcatel-Lucent SA (ALU) is estimated to report a third-quarter net loss widening to 233 million euros from 146 million euros a year earlier, according to eight analysts surveyed by Bloomberg. Alcatel is scheduled to report earnings Oct. 31. Michel Combes, the Paris-based competitor’s chief executive officer, is accelerating plans to scale down, including selling assets. While Nokia Oyj is said to be considering buying Alcatel’s wireless network-equipment business, Ericsson CEO Hans Vestberg said today in an interview he’s not interested.
Network revenue, which makes up half of Ericsson’s sales, fell less than 1 percent to 26.7 billion kronor. Sales from global services declined about 1.3 percent to 24 billion kronor.
“We are currently seeing sales coming under some pressure,” Vestberg said in a statement. Two large projects in North America peaked in the first half, and a major project in Japan is close to completion, he said.
In Europe, business is picking up with investments in faster networks, Vestberg said. Ericsson sees growth in several European markets and margins are also improving as network-modernization deals, which demand more labor hours and are often less profitable, are ending and business shifts toward more lucrative capacity projects, he said.
Modernization contracts led to Ericsson’s gross margin falling to 30.2 percent in 2011, the lowest since at least 1989.
Wireless carriers are improving their networks to accommodate the rapid rise of smartphones and tablets. Ericsson has 36 percent of the world’s wireless-infrastructure market, ahead of Huawei’s 22 percent, based on data from Barclays Plc.
Huawei, China’s largest maker of phone equipment, said in February it is targeting a 9 percent increase in revenue this year for its division that designs and builds wireless networks. The unit had sales of $25.7 billion in 2012. The Shenzen-based company, already near Ericsson in development spending, is boosting its research budget this year to improve mobile and fixed-network performance as well as audio and video transmissions, Li Yingtao, its head of R&D, said in a July interview.
“There’s a tremendous shift in technology and services,” Vestberg said in the interview. “It’s crucial to have a high level of R&D and to be efficient. We need to be the most innovative.”
That's an encouraging article... I can't imagine Caesars would get the nod and given WYNN's fued with Okada they will have an uphill battle. Contrast that with the quintessential template MBS has provided and LVS has a near 100% chance of getting a license...
China October flash PMI beats estimates. China's October HSBC Flash PMI rose to 50.9 from 50.2 in September and topped forecasts of 50.4, with new orders hitting a 7 month high of 51.6. The data is welcome news after an unexpectedly weak read on exports earlier this month raised questions about the vitality of the Chinese growth engine.
Spok, I like the analogy and this comment: " ... but once the market senses that 7.5% growth is sustainable well into the future without excessive inflation or a housing bubble, I think that it will reward these companies with corresponding P/E multiple expansion... just as we've seen stateside."
My concern is this: Will traders used to double digit gains throw a temper tantrum before that sustainability is obvious? At the end of the day, I see little risk of any abnormal sustained downward pps momentum from these levels...
Planned Taipa hotel may have casino
Tony Lai | 23/10/2013 | in
Property with 373 high-end hotel rooms for plot next to Macau Jockey Club that’s been unused for years
A new hotel project next to Macau Jockey Club may have a casino, an executive from the venue’s management company said yesterday.
“If you want to have a nice property where you can relax, where you can go to a nice swimming pool, enjoy restaurants, party but also go to [a] casino, this is all what Hollywood Roosevelt is about,” said Christophe Vielle, chief executive of GCP Hospitality Management Ltd.
The mere mention of a casino raised eyebrows among media attending the ground breaking ceremony for the 373-room, HK$2 billion (US$256.4 million) Hollywood Roosevelt Macau hotel – reportedly being developed by Macau-based Yoho Group Ltd.
The surprise was because of the government’s apparent commitment to preventing proliferation of gaming venues created via so-called ‘service agreements’ with the city’s existing gaming concessionaires and sub-concessionaires.
Asked about whether the government had approved a casino at the venue, Mr Vielle said: “This will be discussed later on.”
He added: “I am [from] the hotel management company and in terms of casino you [the media] have to talk to the developer…I think the developer hopes to have a casino.”
Mike Lam In Wai, identified as from the management board of Yoho and a shareholder in Hollywood Roosevelt Macau, declined to take media questions yesterday. Mr Lam is also general manager of the Macau branch of Taiwanese airline TransAsia Airways.
After the event, Business Daily asked the local casino regulator, the Gaming Inspection and Coordination Bureau, about the reports of a casino on the site.
It said in an e-mailed statement: "The bureau, until now, has not received any application to open a new casino. According to the normal procedure, the bureau will carry out analysis on the project and review whether the project matches the requirements of setting up a casino once [the bureau] has received an application."
Macau’s first chief executive Edmund Ho Hau Wah in 2008 reportedly imposed a ban on any new so-called ‘service agreements’ – whereby the gaming licence rights of existing concessionaires could be spun off to allow third party investors to set up casinos in the territory.
The practice dates back to the days of Stanley Ho Hung Sun’s casino monopoly, when partnering with other investors was a way of sharing market risk and also offering the community a share in the erstwhile monopoly’s good fortune.
Nowadays the government’s stated policy is to limit the proliferation of gaming venues in a proven market that has been aggressively expanding revenue thanks to the contribution of mainland Chinese tourists.
But Edmund Ho apparently placed no limitations on existing or pre-approved service agreements. That’s seemingly on what local businessman David Chow Kam Fai was relying when he announced he was building another casino hotel using a Sociedade de Jogos de Macau SA licence at Macau Fisherman’s Wharf, and that his request for 350 new tables was “outside” the government’s table cap.
The Hollywood Roosevelt Macau plot covers 250,000 square feet (23,226 sq. metres). It will have 28,000 square metres of floor space with “5,000 square metres reserved for the gaming space”, according to the Chinese-language portion of the developer Yoho’s website.
The casino is not mentioned in the English-language section. The project will be ready by “mid-2015”, said Christophe Vielle yesterday.
Three plots next to Macau Jockey Club long are zoned but long-unused
Hollywood Roosevelt Macau will be on one of three land plots next to Macau Jockey Club. The parcels had been zoned for differing types of development prior to Macau’s handover from Portuguese administration in 1999, but had lain idle for more than a decade.
In August 2012 the Land, Public Works and Transport Bureau issued maps determining the construction area, height and storey limits, access, and planning constraints applicable to the three plots. Business Daily has reviewed the documents online. None of them mention gaming.
Yesterday the newspaper asked the bureau for comment on the hotel’s gaming element and whether there was a possibility of all three plots being merged into one development. No reply was available by press time.
According to a news report by Chinese-language newspaper Cheng Pou in July, the hotel land plot has been held since before Macau’s 1999 handover by a firm called Sociedade Hoteleira Macau Taipa Resort. It is reportedly controlled by two British Virgin Island firms.
The newspaper named three people as administrators of Sociedade Hoteleira. Those same names – which include Mike Lam In Wai – featured in a press release issued yesterday by hotel developer Yoho Group Ltd and venue manager GCP Hospitality Management Ltd.
Two other long-idle plots next door – one zoned for residential use and the other for “non industrial” use – are directly associated with Macau Jockey Club, which was founded by Stanley Ho Hung Sun.
The club’s current executive directors include Mr Ho’s fourth consort Angela Leong On Kei and also Ambrose So Shu Fai. Both are also senior executives of Macau casino developer SJM Holdings Ltd.
Hong Kong property investment company Gaw Capital Partners is known to have bought the residential-zoned land from the Jockey Club although the precise date has not been reported. Industrial & Commercial Bank of China (Macau) Ltd announced in November last year however that Gaw planned to invest in a low-density luxury development.
Jaime Carion, director of the land bureau, said this July there was “a taskforce” following up the progress of the three plots. He explained there was “a reason” the land had not yet been developed, but he declined to say what it was.
with Michael Grimes
foggy, there are many ancillary numbers that can be used to verify China's numbers... such as electricity usage rising 10% as GDP rose to 7.8%. China said they were going to expand infrastructure project funding to grow GDP and keep it in the 7.5% range. Guess what? They did just what they said and as I researched the issue I found the projects they talked about. Many pundits that don't want to believe China just pontificate about how you can't trust China's numbers rather than drilling down to find the backups. I'm not saying you're doing that, I'm just pointing out why I think it's important to 'trust but verify.'
Another point I want to highlight: Macau GGR vs USA GGR... More gamblers are hitting the slots and blackjack tables in the U.S., giving the industry a 4.8% boost in 2012, its biggest since the recession. Consumer spending at casinos grew to $37.3 billion, slightly below the industry’s 2007 record high at $37.5 billion, according to a report released Monday from the American Gaming Assn. Macau's GGR was $38B. The two figures are remarkably close.
If China's economy cools due to contraction in real estate due to restrictions on Shadow Banking and liquidity tightening, I expect Macau's GGR will have ramifications similar, but less severe, to what was seen in the USA when housing and liquidity were an issue.
Analysts had long expected that gross casino revenue for the month of October would hit a record high in Macau and with a little more than a week remaining before the calendar flips to November, those expectations have apparently turned out to be modest estimates.
According to the number crunchers over at Sterne Agee, Macau’s gross gambling revenue for the month has already hit MOP24.8 billion as of last Sunday and when all is said and done, that figure could still balloon to a staggering MOP35.7 billion.
That number is significant on numerous levels. For one, it signifies an incredible 29 percent increase in the same time a year ago. But more importantly, the MOP35.7 billion would blow away the existing monthly revenue record in Macau of MOP31.3 billion that was set in March of this year.
One of the biggest reasons October’s revenue haul is steamrolling its way to the record can be traced to the Golden Week holiday earlier this month. The first five days of the week-long holiday saw Macau receive a total of 678,371 tourists, 82 percent of which were made up of visitors from the mainland.
Macau’s casinos also enjoyed business during the week with estimates pointing to a 17 percent increase in year-on-year gross gambling revenue.
As of last Sunday, average take among all of Macau’s casinos has been MOP890 million per day. Extrapolate that on the remaining days and you’re looking at a month’s worth of gross gambling revenue hitting at least MOP34 billion.
Whatever the finally tally is, it’s safe to say that as early as now and with a little over a week before October ends, that record haul set in March is going to have a short-lived stay at the top.
Huawei is seen as a pariah in the West. That eliminates 1/3 of the competition you mentioned.
Over $200B will be spent on telecom network upgrades between now and 2017. The process has started. Verizon and AT&T are spending $16B and $14B respectively this year and next. IMO, all those figures will grow due to lost opportunities to increase subscriber base as competition between service providers tout speed and content stealing customers . If you snooze you lose...
ALU routers are definitely gaining traction and even though they can work with other manufactures equipment, I would say they are optimized with ALU's product line, leading to more sales within the ALU food chain.