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Euro Gains Against Dollar After Weak U.S. Economic Data

By
Andy Parker
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The Euro traded higher against the US dollar today after trading near flat on Wednesday as meek inflation data in the U.S. pushed rate hike expectations to beyond the first quarter of the year. The pair had touched a low of 1.0868 and was seen trading near 1.0900. Support and resistance for the pair are at 1.0538 and 1.1496 respectively.

Softer data

The U.S. Department of Labor had reported a fall of 0.1% in its Consumer Price Index (CPI) for December, which came just below projections. The CPI showed an increase by 0.7% on an annual basis, implying a 0.5% gain over the previous month. Meanwhile, Core CPI also rose by 2.1% year-over-year.

In Europe, investors are now eyeing the European Central Bank meeting, which is scheduled to take place today, to see what possible easing measures the bank may adopt. Market participants are of the view that the ECB will keep rates unchanged on account of China’s slowdown and the ongoing oil rout.

Other currencies

The safe-haven yen remains a preference for investors after oil prices plunged to $26.50 per barrel. The oil slump continues to weigh on a range of currencies including the Canadian, Aussie, and New Zealand dollars, and especially the Saudi riyal. Softer inflation expectations have sent the Australian dollar lower against the greenback. AUD/USD slipped 0.12% to 0.6898. The Melbourne Institute trimmed down inflation expectations to 3.6% from 4% for the next 12 months. The pair has support at 0.6825 and resistance at 0.6962.

Apart from this, the greenback gained against the British pound this morning. The pair was trading 0.10% down at 1.4175. On Wednesday, the U.K. Office for National Statistics had reported a decline in the unemployment rate to 5.1% over the last three months.

The U.S. Dollar index as a whole traded down by 0.06% to 99.07.

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Apple (NASDAQ:AAPL) Finds Symbolic Victory Over Samsung

By
Andy Parker
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Only days after Samsung Electronics requested the US Supreme Court to take up its patent conflict with Apple Inc. (NASDAQ:AAPL), Samsung has been ordered not to sell some of its older smartphones in the United States.

On Monday, US district Judge Lucy Koh granted an Apple motion for an injunction against all devices that are covered by the patents that Samsung was found to be overstepping. The Galaxy S2 Skyrocket , Admire, Galaxy Note 2, Galaxy Nexus, Galaxy Note, Galaxy S2 Epic 4G Touch and several other devices that are now banned from sale in the US. All the banned smartphone devices are at least three years old.

Samsung is said to have violated some patents including slide to unlock, autocorrect and data collection, all owned by Apple. During the hearing, the court declared that it found that Apple will suffer irredeemable harm if Samsung was allowed to continue selling the infringed features. Monetary compensation alone was deemed unsatisfactory. However, Joe Mullins at Ars Technica believes that since the phones are quite old the order won’t shake Samsung’s market share significantly.

The court order also banned any Samsung software or code that might implement an infringing feature in the future. The order came as a surprise as Judge Koh is the one who ruled in August 2014 that the $199.6 million compensation Apple got from Samsung was adequate and satisfactory. If the court could not ban the devices then, why did it order the ban now? That’s why the injunction may only be a temporary symbolic victory until the case is decided.

A Samsung spokesman called the order another example of the abuse of the judicial system by Apple. According to Samsung, the order creates a bad legal precedent and has the potential to harm the choice of consumers for several generations to come. Samsung is warning that every other tech company is now concerned that the Apple versus Samsung conflict will be a gateway for more patent litigation.

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Serious Security Flaws Uncovered In Apple’s (NASDAQ:AAPL) iOS, Alphabet’s (NASDAQ:GOOG) Android and Others

By
Andy Parker
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Apple Store, Apple Inc

A large number of critical security vulnerabilities have just been uncovered in various mobile and PC systems. Apple Inc.’s (NASDAQ: AAPL) iOS and Alphabet’s (NASDAQ: GOOG) Android are some of the systems in which security loopholes have been detected. Oracle Corporation (NYSE: ORCL) systems have also been shown to have hundreds of exploitable vulnerabilities.

Apple Inc. (NASDAQ:AAPL) has released fixes for some of the flaws in its systems and Oracle is in the process of sealing the security loopholes.

Security researchers from Yahoo! Inc. (NASDAQ: YHOO), Trend Micro, Google and other firms detected the massive security flaws, some of which have existed since 2012.

Weakness in Apple’s systems

The researchers uncovered a number of vulnerabilities in Apple’s iOS, two of which the researchers say could allow malicious code to be added to iPhones and iPads if a user visits a tainted site. Apple has already released nine fixes to the security flaws detected in iOS.

Security loopholes have also been detected in Apple’s Mac OS X system. Apple is yet to fix all the problems in OS X.

Android vulnerabilities

Google’s Android also has a number of flaws in it. There is no word about how many of the critical issues have been fixed. However, one of the problems with Android was a weakness that hackers could exploit to install malicious apps on Android smartphones.The problems detected in Android affected KitKat and later versions.

One of the troubles with Android is that updates to the software are not quickly adopted, partly because of the large number of people who use Android devices.

Linux machines found vulnerable

In Linux, a number of flaws were detected as well, with one of the weaknesses said to affect as many as 66% of Android phones. Some of the weaknesses in Linux have existed from as far back as 2012, according to security researchers at Perception Point. Those running Linux 3.8 or later versions have been advised to patch their systems before hackers seize the opportunity.

Oracle’s 248 flaws

Hundreds of security flaws were uncovered in Oarcle’s systems, including Oracle Database, Java and E-Business Suite. The company has already released fixes for 248 security flaws and is in the process of sealing more loopholes.

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Arch Coal’s Bankruptcy Continues to Pull Down Coal Stocks

By
Andy Parker
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Chapter 11 bankruptcy

Arch Coal Inc’s (OTCMKTS: ACIIQ) Chapter 11 bankruptcy filing yesterday has heightened fears over the future of coal companies. Many coal stocks have yet to recover from a steep downhill slide following Arch Coal’s announcement, exacerbated by a broad market collapse today.

Trading on Arch Coal’s stock was suspended on the New York Stock Exchange and transactions on the stock have shifted to the over-the-counter platform. The shift has done little to keep the stock steady.

Arch Coal is pulling a number of coal stocks down with it. Peabody Energy Corporation (NYSE: BTU) fell 11.5% in the last session and Cloud Peak Energy Inc. (NYSE: CLD) trimmed 13.4% of its market cap in the same session. Alpha Natural Resources, Inc. (OTCMKTS:ANRZQ) also dipped more than 20%.

When coal prices were higher, Arch Coal and many other coal producers spared no effort to acquire what they considered strategic assets. Arch Coal borrowed heavily to fund its acquisitions, leaving it with a highly-leveraged balance sheet. Unfortunately, the celebration over high coal prices didn’t last long, leaving Arch Coal high and dry.

The situation was made worse by shrinking demand for coal, especially in the face of climate change threats that have turned many energy producers towards cleaner sources of energy. The slide in oil and gas prices added salt to Arch’s wounds.

$700 million hole

Arch Coal’s balance sheet shows $6.5 billion debt against $5.8 billion in assets, which means that the company has a $700 million hole in its financial books. The company’s bankruptcy filing is not unexpected as many coal companies are struggling and some will likely be forced to follow down Arch Coal’s path sooner or later.

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Global Weakness Continues To Drag U.S. Markets Down

By
Andy Parker
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OLYMPUS DIGITAL CAMERA

U.S. stock indices sold off heavily today as expectations of more stimulus in China was eclipsed by yet another very steep drop in oil prices, at one point by more than 7%. Gains that began yesterday morning for U.S. equities were quick to evaporate, which was only a preview of today’s heavy selloff, breaching the S&P 500 low hit during the August 24th crash as well as the Dow Jones.

Oil continues making new lows as both Brent Crude futures and U.S. Oil futures are trading at sub-$30 levels. Brent crude is trading at $27.50 per barrel while NYMEX breached the 2003 level at $27.32 before rebounding to $27.59, 87 cents down from yesterday. The International Energy Agency (IEA) has already said that the oil glut is not likely to resolve until the end of 2016.

On the currency front, the U.S. dollar index, which measures the strength of dollar against a basket of global currencies fell to 99.11. Investors are closely watching for more strong U.S. data that can point to rate hike by the Federal Reserve after last week’s data failed to meet expectations.

Major industrials like International Business Machines Cop. (NYSE: IBM) and Royal Dutch Shell plc (NYSE: RDA.A) reported dull fourth-quarter earnings today. Netflix, Inc. (NASDAQ: NFLX) was up after posting earnings above analyst projections.

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Cisco (NASDAQ: CSCO) Says Over 50% Of Organizations Lack Faith In Their Cybersecurity Measures

By
Andy Parker
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Backlit keyboard

Cisco Systems, Inc. (NASDAQ: CSCO) has established in its latest survey that more than half of all organizations lack confidence in their cybersecurity systems. The situation seems to be heightened by the increasing frequency and sophistication of cyberattacks. In places like Australia, ransomware attacks are sharply on the rise, going by recent disclosures.

In its 2016 Annual Security Report, Cisco paints a gloomy picture of the global cybersecurity situation. The company’s findings include growing confusion among enterprises buying security systems.

As much as spending on cybersecurity is on the rise, not many of those building security around their data have faith in what they are paying for.

55% of organizations lack confidence

According to Cisco, only 45% of organizations have confidence in their cybersecurity measures. That means that a whopping 55% of organizations simply spend their money on security products but they don’t think what they are buying makes them secure enough.

What is the cause of such pessimism? Companies are increasingly losing faith in security measures they implement because they see hackers becoming more sophisticated and relentless in their attacks. Hackers have been able to recalibrate their attacks to avoid detection if a target happens to seal a loophole they intended to exploit.

Companies’ abilities to patch their systems and keep cybercriminals away is increasingly becoming more diluted.

Popular cybercrimes

Ransomware cyberattacks are on the rise. This type of attack happens when attackers encrypt a data storage device such as a hard drive and demand payment to release the data. Many organizations are losing millions of dollars through ransomware breaches. Usually, a window pops up asking the victim to pay a certain amount of money to redeem their stolen data.

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New Zealand And Australian Dollar Under Pressure Against Greenback

By
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New Zealand dollars

The New Zealand dollar felt some pressure as it tested its September 30 low recovering to 0.6370 against the US dollar. Support and resistance level for the NZD/USD pair are now at 0.6331 and 0.6485 respectively.

Consumer sentiment in Australia deteriorates

The Australian dollar also lost strength against the U.S. dollar, leaving it trading near 6-year lows. The pair shed 0.85% to settle at 0.6850. The weakness in AUD/USD was driven by softer Australian consumer sentiment data that dipped 3.5% sequentially in January while global outlook continues to be a concern. The pair is likely to find support at 0.6823 and resistance at 0.6962. The Aussie dollar traded sharply lower against the euro, with EUR/AUD marching up by 1.27% to 1.5987.

Declining Chinese growth remains a concern in the backdrop following the new numbers released yesterday. The annual GDP growth in China fell to 6.8% from 6.9% in the previous quarter. Though the numbers met expectations, it reconfirms beliefs that the world’s second-largest economy is not keeping up the pace.

Oil bounce fades as crash continues

The sharp decline in oil prices to a level below $28 a barrel today has further dampened the global economic growth outlook. The International Energy Agency (IEA) has projected that the oil market will remain oversupplied until the end of 2016. The report has disappointed investors who were expecting a bounce in oil prices in the coming months.

Later today, all eyes will be set on the US consumer price index, which will help decide the direction of the US dollar. It is expected that core inflation will rise to 2.1% on an annual basis. A strong CPI data point can serve as an indication for a rate hike by the Federal Reserve, which can push the greenback higher.

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Wednesday’s Movers and Shakers in Biotech

By
Jennifer Aldershot
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biotech

The combination of a three-day weekend in the US and the implications of a Chinese sell off while US markets slept translated to some rough action towards the end of last week. This was especially true in biotech, as a host of collaborations and buyouts hit press at the conclusion of the J.P. Morgan 34th Annual Healthcare Conference. The US open on Tuesday brought us much of the same, and a number of companies moved sharply throughout the session. Here are two of the day’s movers and shakers.

Versartis, Inc.

First up, Versartis, Inc. (NASDAQ:VSAR). Versartis is a development stage biotech that focuses on harnessing the body’s endocrine system to tackle a number of different conditions. The endocrine system is the system that produces and distributes hormones throughout the body, so target indications are extensive – anything from physical development to kidney and digestive system conditions. Versartis is targeting the former, with a main focus of growth hormone deficiency in children. It’s lead candidate, VRS-317, is billed as an improved therapeutic outcome (ITO) product – essentially a drug that has the same efficacy as current standard of care, but improves on certain aspects of the treatment. Things like reduced administration schedule, reduced side effects and extended efficacy timeframes all count as ITO qualities.

Versartis closed out last week at a little over $11 a share. This morning it will open at close to $13 – a more than 18% gain across Tuesday’s session. So why the move? Well, the company published data from its phase Ia/IIb for VRS-317 in The Journal of Clinical Endocrinology & Metabolism. The trial is an attempt to demonstrate the both safety and efficacy, as well as determine optimal dosage, and the journal in question is very highly regarded in this particular field of medicine, so anything positive is a boost for the company. The data demonstrated a significant increase in both the height of patients and growth velocity, with no significant differences between the monthly, twice-monthly or weekly dosing regimens. This means physicians can administer therapy once monthly and maintain the efficacy of a weekly dosing regimen.

Expect further strength as we head into today’s session, as markets digest the data and look ahead to an ongoing phase III extension for the same indication.

Heron Therapeutics, Inc.

Heron Therapeutics, Inc. (NASDAQ:HRTX) closed last week just shy of $23 a share. Throughout Tuesday’s session the company lost 17% of its market capitalization to close out the session at $19. Why the decline? Heron’s lead candidate is Sustol, a sustained release injection therapy that targets the reduction of nausea and vomiting in patients undergoing chemotherapy. The FDA had slated January 17, 2016 as its PDUFA date for the drug. On Friday, however, the agency announced it was delaying its decision. We didn’t get a fixed date for the revised decision – all we know is it’s not going to be before late February. While this isn’t an outright rejection, the fact that the FDA gave neither a fixed timeframe nor a specific reason for the delay doesn’t bode well.

The company gained strength throughout December as the PDUFA date approached, but gave much of the gains back against the backdrop of the wider biotech space selloff at the turn of the new year. The delay compounded this bearish momentum, and puts Heron as one of the week’s weakest biotech stocks.

Looking things from a slightly more positive perspective, and for an investor looking for an albeit risky oversell opportunity, Heron could be an interesting pick. Sustol is in the same category of drugs as a drug currently marketed by GlaxoSmithKline plc (NYSE:GSK) called Zofran, and from a scientific perspective, there looks to be no reason it shouldn’t work. The FDA has likely delayed based on a technicality, rather than a safety/efficacy basis, and if Heron can smooth out the agency’s concerns this decline could quickly correct to the upside. Of course, this is a big assumption, and trying to pick the bottom of the current sell-off is a risky approach. We’re more inclined to wait until we get more information from the FDA before forming a medium term bias. Keep an eye on the end-February indication date for further insight.

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World Markets Anxious Ahead Of World Economic Forum

By
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the World Economic Forum

Major indices across the globe traded down ahead of a global leaders’ meeting at the World Economic Forum in Davos, Switzerland. The dip came on full force after oil prices drew back to the $28 zone, testing 12-year lows.

Asian markets slump

Asian markets were broadly in sell-off mode. Hong Kong’s Hang Seng took the worst beating, slipping 3.82% or 750 points to 18,866. Second worst was Japan’s Nikkei, which shed 3.7% to 16,416, confirming its entry into bear market territory.

The continuing fall in oil prices is still weighing on markets as investors remain jittery about the direction of the global economy. These concerns were heightened after China, the world’s second-largest economy, continued its slowdown as indicated by the data released yesterday by the Chinese government. China’s GDP growth fell to 6.8% in the fourth quarter from 6.9% in the previous quarter, and investors have not been very trustworthy of official Chinese figures that many see as inflated.

European markets also paired the previous day’s gains and opened sharply lower. Nearly all the indices in European markets registered more than 3% losses with France’s CAC 40 losing the most at 3.49% to 4,123. Germany’s DAX and Europe’s Euronext 100 were down 3.45% and 3.24% off their previous day’s close respectively.

Oil and sentiment

Oil prices, which showed some recovery yesterday, were nevertheless quick to breach the September 2003 low of $27.42. Sentiment surrounding the commodity were weak as Iran readies to flood the saturated global oil market with more supply. Meanwhile, the International Energy Agency (IEA) has kept its forecast for global oil demand static and ruled out any relief in the current oil glut at least until the end of 2015. The agency has even warned that oil prices might fall to fresh lows in the coming days.

US markets fizzle

Yesterday’s U.S. stock market rally was short-lived as the oil price slide weighed on expectations of increased stimulus efforts in China. On Wall Street, the Dow Jones Industrial Average closed 0.17% higher at 16,016.02. The S&P 500 too closed marginally up by 0.05% at 1,881.33, though the Nasdaq Composite was down a quarter of a percent.

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Apple (NASDAQ:AAPL) Stresses Workplace Diversity But Admits Progress Is Slow

By
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Tim Cook

Apple Inc. (NASDAQ:AAPL) CEO Tim Cook has emphasized the need for workplace diversity on several occasions last year. Cook said that diversity is vital to innovation and important for Apple’s future. According to Cook, the company must meet underlying challenges, present new opportunities and establish a future generation of personnel as diverse as the existing world.

Fighting words, but hiring workers in direct proportion to the diversity of the human race on Earth is next to impossible. Statistics reveal slow progress, unsurprisingly. As per Apple’s last annual report, there was a small increase in the percentage of Apple’s US employees who are Hispanic, black and Asian. The number of black employees rose from 8% in 2014 to 8.7% last year. The number of Hispanic employees increased from 11.5% in 2014 to 11.8% in 2015. Asian employees increased from 16.3% in 2014 to 17.4% last year.

The number of women in Apple’s workforce rose to 30% last year from 27.7% in 2014. The share of women among Apple’s senior employees of about 7,356 managers as well as senior executives dropped to 27.1% from 27.7%.

Apple remains predominantly white and male. Executive managers as well as senior figures are likewise mostly white and male at 83% for both.

Large tech companies such as Alphabet Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) have similar numbers. On average, tech companies are dominated by men, with women making up 15% of the tech force.

Apple’s vice president of worldwide human resources, Denise Young Smith, opined that improving diversity will take a while. She said that the diversity challenge didn’t occur overnight, and it will not change overnight.

Apple claims that Federal authorities are not up to date with changes in the US workforce industry. And perhaps, at the end of the day, Apple should simply concentrate on hiring the best and most reliable workers, regardless of race, skin color, gender or anything else.

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