The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Hits & Misses – A hollerback from December 2011 | Trend Insight

Here’s what banking news round up had for you in December 2011, for a just sanity check this weekend as they will haunt you in 2012, even as Markets have turned direction decisively.

Apple price targets upped to $510 by UBS

UBS analysts also marked a 31% increase in revenues for FY 2012 ( ending September ) to $143 bln ahead of the 2011 Holiday season. Apple is likely doing a 100 mln iPhones this year if Q4(Apple Q1) is any indication and it can easily ship more than 60 mln iPads though the FoxConn environment and the Proview patent story is still in the news, with Proview also filing in California

Blagojevich asked to serve 14 years, becomes 4th of 9 last Chicago governors to serve ‘term’

Blagojevich was found guilty on 14 counts, the second governor on the trot within five years to be indicted and sent to prison. His predecessor is serving 6.5 years in prison

Verizon announced plans with Amazon to beat the streaming for kicks Netflix as Netflix made up with HBO GO parent Time Warner

Verizon first announced their streaming product to compete with Netflix at the ‘9surprise!) UBS media conference on the same first week of December. Netflix has recovered since, but Verizon firmed up its launch this month with Redbox. The Coinstar – Verizon JV starts commercially in the second half of 2012. Unfortunately for Verizon and Netflix, streaming is likely to be a low margin business. Amazon has entered competition with a $75 Prime subscription giving access to the whole Library. With Netflix playing up to Time Warner, and th emuddled head of content owners trying to up their stake  in the blood bath, it would be interesting to watch the game come to a one to one for the bet content libraries and who manages to earn a profit, both likely mutually exclusive. Also Time Warner owns HBO Go and at least Hulu lost HBO content in the cat fight

UBS AG went ahead with a dividend announcement in turbulent times and upped its stake in Chi-X majority owned by Nomura

Chi X promotes alternative share trading platforms ( Black pools & unlimited high frequency trading) with a limited pool of wholesale traders for equity than a public market

 The LTE Spectrum Wars

Verizon’s do good bid for $3.6 bln for 1 MHz of Spectrum the week AT&T lost the FCC ars is not done yet with aT&T also buying spectruma nd complaining about Verizon”s spectrum to FCC

European Banks Deleveraging

Despite Commerzbank and Deutsche Bank having come close to the EBA target, European banks are likely to continue delveraging for another 4 years or so, restricting the avalability of new profit making credit accounts to their universe with the effecto fdeleveragng now limited to their own and Europe’s misfortune unless US Banks can set up a viable mechanism for credit products int he region too. GDP contraction in the euro states is going both ways, some good , some bad but banks are unlikely to recover till the fag end of 2013 with Basel 3 and the new 33X Leverage cap in sight

Most national franchises in Europe, esp France are close to being relegated to regional rankings in Fee advisory and underwriting business


Enhanced by Zemanta


This entry was posted on February 25, 2012 by in Financial Markets and tagged , , , , , , , , .


<span>%d</span> bloggers like this: