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90 seconds at 9 am: Google shares slump after it accidentally releases profit result that misses forecasts; US stocks fall; NZ$ under 82 USc; Euro-nerves easier for now

90 seconds at 9 am: Google shares slump after it accidentally releases profit result that misses forecasts; US stocks fall; NZ$ under 82 USc; Euro-nerves easier for now

Here's my summary of the key news overnight in 90 seconds at 9 am, including news Google accidentally releasesed a weaker-than-expected profit result before the close of trading overnight.

Usually Google's result is released after the close of trading in New York. Google's shares fell as much as 11% before being halted because Google's profit per share of US$9 was much weaker than the consensus forecast for around US$11 a share.

Average advertising revenues per click fell 15% in the last year and were down 3% in the quarter. See more here at Bloomberg.

This surprise miss for Google helped drive the technology stock-heavy Nasdaq index down around 1% in late trade, while the S&P 500, the broadest measure of US stocks, was down around 0.5%.

This slight downturn on US markets reduced appetites for riskier currencies such as the New Zealand dollar, which eased back under 82 USc in morning trade.

Elsewhere, European stocks nudged higher on hopes for an easing of tensions in the European debt crisis. Hopes are rising Spain is on the verge of asking for a bailout, which would trigger the European Central Bank's 'Big Bazooka' of unlimited bond buying.

Spanish and Italian bond auctions overnight received stronger than expected bids and longer term bond yields are dropping, another sign of easing tensions.

Meanwhile, in China, annual GDP growth in the September quarter fell to 7.4%, its lowest level since early 2009, but quarterly growth picked up to 2.2%, a four quarter high. This indicated a rebuilding of momentum in the Chinese economy, which helped support stock markets and riskier currencies globally earlier in trading overnight.

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58 Comments

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My head is in a spin

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Excellent ! ....... that is how it should be ..... business is back to normal .....

 

...... your head wasn't in a spin when the central bankers and government control freaks were smoothing everyting , bailing out the screw-ups , glossing it all over , sanding off the rough edges ....

 

" Up / Down / Up / Down  / Up "  is the nature of the capitalist system .... and oddly enough , Winston Peter's political career !

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If we could just get rid of the damping effect of derivatives it would be like the good old eighties  - 6 big figure movements in the ccy quotes over a day - great for the heart - no gym fees. 

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Why would you get rid of the derivatives ? ...... they serve a useful function ....

 

...... wanna do us all a favour ....  get rid of the central bankers ! .... there's the heart of the problem ...

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Got an account have you? - good luck in light of MF Global, Refco etc - a fool and his margin money are soon parted apparently.

 

Do you really want to get rid of the irredeemable fiat money sytem?

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But Gummy, my

 

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Is based on the emotional feelings of morons.

 

Capitalist up downs up downs are based on actual performance as observed by businessmen.

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Oooooops ! ... sorry , my bad ..... I thought that you were alluding to the ebb & flow of the capitalist system ...... up /down / up / ........

 

..... but upon explanation , I see that you were referring to finance journalists ...... cool !

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We are not allowed to say Morons Rudderless....nope..... rule, you'll be hearing Moron that from Bernard......

 The censor is still up to the job , as a missing post from yesterday would  verify...who's ..? 

 It was yours Scarfo.....tsk tsk.....don't ever mess with a Camel.

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Can you still get a Camel ? ...... I thought they'd deserted us when plain packaging for  cigarettes was brought in .....

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No problem getting a camel GBH, but camels like Carmel only come along once in a blue moon.....she thinks she's special.....

 Here she is doing a photo shoot for Linda Grimes , number two camel , well as if you couldn't tell.

http://www.lindagrimes.com/2011/06/if-its-wednesday-it-must-becamel-time.html

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SH : GBH answers " No " to the first question , and " No " to the second question .

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I goggled when I saw Googles profit derailment -   but are  they are Too Big To Fail ?

Xero , 2Degrees etc       brrrr   ,     u wouldnt catch me with these hi-speed outfits...

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u wouldnt catch me with these hi-speed outfits...

 

Unfortunately when the authorities impose totally unecessary trading halts for an early data release all are caught and unable to attend to business. Closing shop has ill-defined benefits.

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The guys over at Motley Fool attribute the poor quarter for Google directly to their acquisition of Motorola ..... a huge write down in profits there ...

 

..... Caveat Emptor : No one is too big to forget this lesson !

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Now lookie here Bernard....yesterday I give you the nod on the Fed bomber, son of a Bangladeshi Banker no less...even throw in a free shot a my Camel and what still no press..?

 Let this be a lesson to all other latent terrorists and Walter obviously, if you can't get any traction in the media then the activity loses it's allure.

 

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Others are less discreet

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Too true Stephen H, sadly....

Over the weekend it was not some disenchanted and long-suffering Greek, nor Irishman, nor even a Spaniard, but a German who burned and stabbed himself to death in front of the Reichstag in broad daylight. Moments ago, yet another country which has so far had been spared ritualistic (attempted) suicides, joined the ranks of places where people would rather take their lives than live under the oppressive European depression, 

http://www.zerohedge.com/news/2012-10-18/man-self-immolates-front-romes-presidential-palace

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 Christov – don’t underestimate Walter - I’m preparing a “terrorists trip” with some friends to Switzerland –  for a shooting spree of some “CEO- stags” on a “Bankster’s Golf course”.

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I'd like to say good for you Walter, but out of concern for your good wife, I must ask you refrain from the temptation and continue your sterling work of exposing our Glorious Leader for the polished turd he really is....IMHO. 

 Viva the revolution.!!!!

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Ohh Christov – I wouldn’t even be surprised to find our “Glorious Leader” mixing up business with other members on that “Bankster’s golf course” too.......... = another top CEO stag trophy.

 

PS>  I keep an eye on CEO Andrew Krieger too..

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Hey christov, d'ya feel like doing a clandestine trip down to kaikoura with the balaclavas on and test the security arrangements of a certain goldsmith .. it seems he's gonna be out of the country for a while and the load would be too heavy for him to tote around the golf course.

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I think his specialty is in Guilt iconoclast and we'd get framed in the process.

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"polished turd" .. funny you should say that to kunst .. cos in japan they cover them in gold leaf and sell them .. they call them "roses"

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hey Kunst,

 

You gotta be extra careful in what you say in public forums in this day in age. The above comment could be construed as a terrorist threat. Next minute you'll have jack booted government stormtroopers kicking down your door and you'll be charged under the new Terrorism legislation. They'll do it just to make an example of you to the rest of the plebs who refuse to give our financial overlords the respect that is due to them.  

 

I think it would be a mistake to assume that only Muslims will be the only victims of Western police and intelligence agencies efforts to induce them into committing violent acts that they otherwise likely not to have commited. Entrapment and implanting agent provacateurs into dissident organizations has been a favorite tactic of TPTB for a long time, in order to sway public opinion against groups who challenge the status quo. Don't make their task any easier for them. 

 

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Good advice there Anarkist...I know you are right, but even if just to agitate I try to say bomb on the phone at least 5 times a week....

I don' t  know why Anarkist, but something about....

 the intro  "Hey Kunst," makes me a little uncomfortable 

 it's sort of what I imagine the jackboots will be shouting as they kick the door down...!

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...... if we use incendiary language here , won't the wolves at the FBI break into the office of interest.co.nz and beat up Bernard , ... before they manage to track us down ?

 

It's worth a try !

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Gummy,

 

Such an event will only give Bernard further fuel for being extra gloomy. Surely you wouldn't want that?

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Well thank bloody you GBH...I get a good plan going, and now Bernard scurries off to tell the I.T. guy to dump the caches....Osama Bin Hickey slips the net yet again.

 You really think Walter developed a' kill a banker today ' creedo all by hisself...? 

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haha Christov,

 

I remember doing that when I was 15, upon learning about the Echelon system that the U.S. NSA agency is running. Now looking back I'm slightly embarrassed that some poor intelligence analyst must be deluged with similar hijinks from thousands of adolescents and "adolescents at heart"

 

Well I hope for Kunst's sake, someone in the police hierarchy will exercise some discretion, and such a scenario won't take place.

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I’m worried also, how dangers I’m.

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OOps! looks like Walter's just got company..so I'd better put up the Friday YaY early and pack.

YaY it's Friday.......

In keeping with the breakfast theme, sorry Petra, I'd prefer that git in the middle had gone myself what a twat...anyhoo...

 A grade three teacher is giving a lesson on nutrition, and she decides to ask her students what they had for breakfast. 

To add a spelling component, she asks the students to also spell their answers.      Susan puts up her hand and says she had an egg,  'E-G-G'.  'Very good', says the teacher.      Peter says he had toast 'T-O-A-S-T'.  'Excellent.'      Johnny has his hand up and the teacher reluctantly calls on him.  'I had bugger all', he says, B-U-G-G-E-R  A-L-L'.  The teacher is mortified and scolds Johnny for his rude answer.    Later when the lesson turns to geography, she asks the students some rudimentary questions.    Susan correctly identifies the Capital of Canada.   Peter is able to tell her which ocean is off Canada 's east coast.    When it's Johnny's turn, the teacher remembers his rude answer from the nutrition lesson, and decides to give him a very difficult question.    Johnny, she asks, 'Where is the Pakistani border?'      Johnny ponders the question and finally says, 'The Pakistani boarder is in bed with my mother..  That's why I got bugger all for breakfast'. 
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European central bank unlimited bond buying suggests another good reason to own hard assets like land, house, precious metals and forget cash in the bank.  If there is run on some Spanish banks then its safe for the Spanish to have a small amount of cash at home just in case they will not be able to get money out at the machines or pay by card for a week to 10 days when this occurs.  Events like this have happened before and could happen again.

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Yes you are right its has happened before, eg the 1930s depression.  You could consider why they are printing....if its to avoid a recession/depression and significant deflation then owning vastly over-priced hard assets that are illiquid is a huge mistake, which is my take.

Now yes I'd be worried about cash in the bank, but bank runs and defaults are going to get some warning, so you should have time to mitigate that risk (I hope).

Cash at home, well shops as a rule have 3 to 5 days food on the premisies.  So having cash is moot if pak-n-save cant re-stock, so several weeks of food at home is a better bet. 

NB. The open doors policy the RB is pushing for mostly solves the cant get cash out and buy wholesale problem.

regards

 

 

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My wife is currently visiting a friend in downtown Barcelona - irrespective of almost daily protest marches/riots she claims shops, restaurants/bars are very busy - as a visitor she is finding it hard to discern obvious signs of monetary disruption. 

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One senerio to think about over a decent coffee concerning Greece and Europe:

Ordinary Greeks may queue up to empty their bank accounts before they get frozen and converted into drachmas that lose half or more of their value. Depositors in other eurozone countries seen as being at risk of leaving the euro - Spain, Italy - may also move their money to the safety of a German bank account, sparking a banking crisis in southern Europe.

Confidence in other banks that have lent heavily to southern Europe- such as the French banks - may also collapse. The banking crisis could spread worldwide, just like in 2008. The European Central Bank may have to provide trillions of euros in rescue loans to the banks. Some governments may not have enough money to prop up their banks with the extra capital needed to absorb losses and restore confidence; the banks could then go bankrupt.

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with all this gloom and doom i was looking ahead to a long weekend with nothing to cheer me up.

Then like a bolt from the blue i recieved news that has made me never question the lord anymore.

PETRA IS LEAVING BREAKFAST.

Oh what joy

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She put you off your breakfast .... now she's off her's !

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Any global shock I'm heading to the beach for an ice cream !

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Stay off the Beach..Starfish1, aftershocks can cause Tsunamis not to mention the seagulls eyeing you and your ice cream......

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" Good Food " first ! ... before your ice cream on the beach , eat the sand which's there ...

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All three now in the collection SoreL...fair pissed at number two,,,!! but all were a great laugh.

((((((((((((((((((((((((((((((((())))))))))))))))))))))))))))

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Yup , number two had me staining me Gummy nappies ...... thanks Sore_Loser  !

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Im calling you out PDK, what say you?

 

http://www.telegraph.co.uk/earth/energy/fuel/9619269/British-engineers-produce-amazing-petrol-from-air-technology.html

 

Energy in compared to energy out etc, hit me!

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Get ready guys , there's gonna be a gunfight at the Gloomy H. corral ...

 

... . any moment now the PD Kid's gonna be gunning  lead into your belly , amigo ...

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Leadbelly the Tech has been around since the nineties, debugged  or not I don't know, but before you offer PDK a free shot best you go back and read the comment stream on it...numero uno for starters.

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Just what are you calling out?

Start with,

1) EROEI, we have not seen that.

2) Consider, time and scale.

regards

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Oi , hombre , Leadbelly wants to shoot the Sheriff , not the deputy  ........ Jim Croce wrote a song with us in mind !

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na, why should PDK have all the fun.........must be my turn to shoot a new troll, way bored with you....to easy a target...

regards

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Owwwwwch ! ...... shooting a guy below the belt is seriously bad form ya ornery varmit ......

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oh and uh,

"Although the prototype system is designed to extract carbon dioxide from the air, this part of the process is still too inefficient to allow a commercial-scale operation.

The company can and has used carbon dioxide extracted from air to make petrol, but it is also using industrial sources of carbon dioxide until it is able to improve the performance of "carbon capture".

http://www.independent.co.uk/news/science/exclusive-the-scientists-who-…

So it uh doesnt even uh work yet....great solution that.

regards

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Steven: It does work. The know-how of re-arranging the carbon atoms in Co2 (C1O2) to petroleum (C8H18) has been known for a long time. Nothing new. But the energy cost of doing that re-arrangement is not only prohibitive, it is astronomical. You would have to design a new EREOI to just accomodate it.

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Didn't mean to leave you out Steven, apologies. Fire away. Whats.. this?  all...ready ...bleed...ing.........

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Five whole litres, in Three whole months.

 

The comments thread at the Torygraph is priceless.....

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LOL Leadbelly! Thank you for the chuckle!

 

This comment sums it up well:

 

There are two cultures. One which understands the second law of thermodynamics, and one which does not.

And unfortunately, every one of these magic fuel schemes manages to run afoul of either thermodynamics, or economics, or both.

 

Guess which camp you fall into?!! :-)

 

 

 

 

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Couldn't see the comments thread on that? Maybe wasn't one when I visited. Anyway, good oil from air(I know I know, and the other inputs as per stevens 2 cents) was news to me.

 

 Go the white lab coat brigade, I can but admire. 5 litres in 3? Months is 5 litres more than I! 

 

On a local note, how about that biofuel story in the herald today? Oil for 50-55US$ a barrel, if nothing more than to instigate a reload, gentleman?

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I didn't have the energy to reply this time, thanks guys.    :)

 

Heinberg calls that kind of wishful thinking as: 'Waiting for the Magic Elixir'.

 

I call it clutching at straws. 10% of USA petrol is bio; clashing directly with corn and corn products. This is all about absolute limits now, Hughey crashing into farmland, both reliant on oil. No growth without burning carbon, so a need to burn more (G7 to IEA, for example) to grow. No physical way to physically sequester even the current output, so a need to 'spin'.

 

One who might be interested is Gertraud, though; she was waiting for the good oil on electrcity from the air.

 

Me, I'll stick to solar voltaics; even 15% efficiency from 1KW per square metre, is better EROEI than the proposal - although it's not enough to maintain BAU as we understand it....

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Pic was a little 'Harry Potter'

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