Month: March 2012

A wireless partnership that could have competed with the U.S.’s largest carriers like AT&T (NYSE:T) and Verizon (NYSE:VZ) has ended. The Wall Street Journal reports Sprint (NYSE:S) will end its 15-year contract with LightSquared and return $65 million in prepayments to the company.The move comes after the Federal Communications Commission said earlier this year that LightSquared would not be able to operate its proposed nationwide fourth-generation network. The wireless start-up’s plan would have used satellite wireless airwaves through 40,000 cell towers covering 260 million Americans. LightSquared hoped to sell its service wholesale to carriers seeking extra capacity.Last month, the FCC said it wouldn’t allow LightSquared to operate its network because of concerns it would interfere with Global Positioning Systems signals. Because of the termination of Sprint’s deal, LightSquared will have to find more funding if it ever gets approval for their planned network.

One of the world’s largest fast food chains and a french hypermarket company are being accused of selling expired food. Chinese state television is accusing McDonald’s and Carrefour of selling expired chicken products in separate incidents. The report on Thursday said a Mcdonald’s in Beijing sold chicken 90 minutes after they were cooked, 60 minutes over the company’s expiration rule. It also said employees at Carrefour store in Zhengzhou changed expiration dates on some chicken and sold it to customers.Both companies have publicly apologized over the alleged incidents and are investigating the report. Food safety is an important issue in China, a country that has been plagued with many toxic food and product scandals over the years.

After going from strength to strength since starting in October 2010, we have decided to put the Central Bank News website up for sale in hopes that the right person or organisation can pick up the torch and take Central Bank News to the next level.  Notwithstanding this development Central Bank News will continue to provide timely and insightful updates on global monetary policy and central banking developments for the foreseeable future.  We are presently accepting expressions of interest from those interested in acquiring the Central Bank News website and databases; please email [email protected] for a copy of the information memorandum.

One of the internet’s most popular payment services has finally gone mobile. PayPal launched its mobile payments service yesterday that lets businesses accept credit cards using a card reader attached to the iPhone.The service is called PayPal Here, and it will allow customers of a certain business to pay using credit cards, their PayPal accounts or checks in the U.S. The best feature about the service: You don’t need a PayPal account to use it. PayPal said that the service is currently only for the iPhone but will be coming to Android devices soon. The company will take a 2.7% cut for each transaction.

Its been a tough year for Sears Holdings Group (NASDAQ:SHLD). Today the company announced plans to shut down 62 retail stores to decrease expenses for the first half of the year.The company will close 43 Sears Hometown stores, 10 Sears Hardware stores and 9 The Great Indoor stores.Earlier this week, Sears announced they’d be removing the clothing department from 10 of its stores.Sears Holdings is currently above its 50-day moving average (MA) of $52.83 and above its 200-day of $61.07.

Here’s today’s Central Bank News link list, click through if you missed the previous central bank news link list.  Remember, if you want to submit links for inclusion in the daily link list, just email them through to us or post them in the comments section below.

Sterne Agee released a note giving its nod of approval to Cisco’s (NASDAQ:CSCO) acquisition of NDS.Sterne said that its $5 billion acquisition of the UK-based company allows it to invest part of its huge overseas cash reserve that allows them to overstep repatriation taxes.Cisco is just one of the major US firms that’s lobbying for a tax break on overseas cash reserves, and has advised that it would boost its US spending if that break was permitted.Cisco Systems (NASDAQ:CSCO) has potential upside of 16.3% based on a current price of $19.91 and an average consensus analyst price target of $23.16.

Online game developer, Perfect World (NASDAQ:PWRD) rose 29% after the company reported earnings late Thursday.The company reported EPS $0.98, topping analyst estimates of $0.55 per share. Revenues came in at $123.40 million, better than consensus estimates of $112.33 million.Perfect World (NASDAQ:PWRD) has potential upside of 43.5% based on a current price of $12.55 and an average consensus analyst price target of $18.01.

The consumer price index rose 0.4% last month while the core inflation, which removes the costs of food and energy and is a more favored reading by the Fed, rose 0.1%, below the 0.2% forecast. University of Michigan Confidence number dropped to 74.3, below the forecasted 76. Americans are becoming increasingly concerned about the rising cost of living. Consumers are expecting an inflation rate of 4% over the next year, compare to 3.3% in the prior reading. Correct me if I’m wrong, but I think what consumers feel the most is the rising gas price. According to nation’s largest motoring organization AAA, the average price of regular gasoline rose to $3.83 per gallon as of March 15. I don’t drive right now, but if you would like to share your experience at the pumps with me, please tweet me @juliasun_onair or send your comments to our show. For more news and updates, keep it right here at the Financial News Network. I’m Julia Sun reporting from New York City.

We talked about former Goldman Sachs executive Greg Smith on our show this week and how his resignation letter cost Goldman Sachs $2B in market value. Mr. Smith has a very uncomplicated background: economics major from Stanford University and a Rhodes Scholarship finalist. In short, he represents the best and brightest that Wall Street used to recruit. Why do I say used to recruit? Because the best and brightest students are not coming to Wall Street anymore. It’s no longer the dream career because of the falling financial payout and reputation. Friends of our show attending the Harvard Business School tell us that more than 70% of the graduating class have their eyes on industry jobs instead. This is very different from my conversations with Ivy League business graduates three or four years ago. Back then, the whole point of getting an MBA or undergraduate business degree from a top school is to land a job in investment banking or management consulting. In 2008, which is the last recruiting year before the credit crisis hit, close to 30% of Harvard graduates majored in a business related field went into finance. In 2011, 17%. Among the industries, technology, energy and bio are popular choices. The rationale is simple, the next jackpot will probably emerge from these three. Tell us your thoughts. You can tweet me @juliasun_onair or send your comments to our show. Thank you for watching, I’m Julia Sun for the Financial News Network.