(Reuters) - Duncan Niederauer, the chief executive of New York Stock Exchange operator NYSE Euronext, once boldly proclaimed that his company could not be acquired.
Last year, even when Niederauer was prepared to sell his company to Deutsche Boerse, he insisted that he be chief executive of the combined company. The deal ended up being quashed by German regulators.
But with the agreement by IntercontinentalExchange to buy NYSE Euronext for $8.2 billion, Niederauer has accepted he will have to at the very least play second fiddle. He will become president at the combined company, while still running the New York Stock Exchange, and report to ICE CEO Jeff Sprecher.
"In a sense he must be very frustrated because some of the big things he was trying to do did not work out," said Andre Cappon, president of CBM Group, a New York-based consultant for global exchanges.
To an extent, the world may have left Niederauer behind. His expertise was in stock trading, a business that now has razor-thin margins and is increasingly left to computers.
Sprecher, on the other hand, has ascended as derivatives have become a key part of financial markets and the financial crisis made listed derivatives relatively more important.
Born in Indiana near the Kentucky border, and raised in Madison, Wisconsin, he has a down-to-earth aura that belies his ambitious type-A personality, say people who know him.
Sprecher has not met with constant success, but when something goes wrong, he moves on.
"He's not afraid to fail," said one person who knows Sprecher well.
Among his misses: a failed bid to buy the Chicago Board of Trade in 2007, not to mention a failed joint bid for the NYSE with Nasdaq OMX Group Inc.
He made his move for the CBOT at the annual meeting of the Futures Industry Association, in Boca Raton, Florida, where CME Group officials had expected to deliver a progress report on their planned acquisition of their smaller rival.
Sprecher slipped the formal offer under the hotel doors of CBOT Chairman Charles Carey and CBOT CEO Bernard Dan, at about 6:30 in the morning of the conference's first day.
CME Group later raised its bid for CBOT and clinched the deal in mid-2007 - but Sprecher would still finish the year with two key acquisitions, the New York Board of Trade commodity market and Canada's biggest grains exchange.
This summer both Sprecher and Niederauer bid for the London Metals Exchange and lost. Within four months they were talking to each other about a much larger deal.
LETTING GO OF EGO
There was some bad blood between Sprecher and Niederauer last year, when Sprecher's ICE was part of the group that made an unsolicited bid for NYSE Euronext.
NYSE Euronext was instead focused on a different deal: selling itself to Deutsche Boerse. Sprecher admitted in an interview with Reuters that he tried to wreck the Deutsche deal by "calling out every wart and pimple" on the transaction.
The two men stopped talking for about six weeks.
But after ICE posted good fourth-quarter results in February, Niederauer extended an olive branch with a surprising three-word email to Sprecher: "Hey, great quarter."
"He and I had a preexisting friendship and I wondered if it was going to survive my trouble making," Sprecher told Reuters. Then the email arrived.
"He was very magnanimous and so I knew that he saw through what I was doing and we were still very cordial."
Niederauer took over as NYSE Euronext CEO at the end of 2007, just after his predecessor, John Thain, had completed the landmark deal to buy Franco-Belgian Euronext.
After a 22-year career at Goldman Sachs, mostly in equity trading, and just nine months as head of NYSE's trading operations, he took control just before the 2008 financial crisis triggered a seismic shift in the exchange world, one that seemed ill-suited to his background.
Equity investors, burned by scandals and volatility, were trading less and less; meanwhile new regulations would drive more derivatives onto exchanges like ICE and CME.
The answer, Niederauer thought, lay in Deutsche Boerse. But when regulators nixed the deal in February this year, he quickly laid out a new strategic plan for shareholders: clearing and technology - two areas in which ICE already excelled.
By June, Niederauer was saying it was "make-or-break time" for NYSE's nascent U.S. futures operation, which was clearly failing to thrive in the shadow of established rivals.
In working together at the merged venture, Sprecher and Niederauer may each find a comfortable way to co-exist, each playing to his respective strength, some say. But several people, including a NYSE investor and a board member of a rival exchange, questioned whether the partnership can last.
In an interview, Niederauer said he would remain at least through 2014 as an "important senior member" of Sprecher's management team.
He added: "People get too caught up in titles. Let's just worry about making it work and my guess is that if it's still fun for both of us in 2014, or 2015, or whatever, we will keep doing it."
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Stocks fall sharply after Republicans cancel vote
Labels: BusinessNEW YORK (AP) -- Stocks are opening sharply lower on Wall Street.
The big drop comes after House Republicans called off a vote on tax rates. That left federal budget talks in disarray 10 days before sweeping tax increases and government spending cuts take effect.
The Dow Jones industrial average is down 116 points at 13,195. The Standard & Poor's 500 index is off 13 points at 1,430. And the Nasdaq composite index is down 54 at 2,996.
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RIM shares fall at the open after earnings
Labels: BusinessTORONTO (Reuters) - Research In Motion Ltd fell in early trading on Friday following the BlackBerry maker's Thursday earnings announcement, when the company outlined plans to change the way it charges for services.
RIM, pushing to revive its fortunes with the launch of its new BlackBerry 10 devices next month, surprised investors when it said it plans to alter its service revenue model, a move that could put the high-margin business under pressure.
Shares fell 16.0 percent to $11.86 in early trading on the Nasdaq. Toronto-listed shares fell 15.8 percent to C$11.74.
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Stocks open sharply lower after GOP cancels vote
Labels: BusinessNEW YORK (AP) — Stocks opened sharply lower Friday on Wall Street after House Republicans called off a vote on tax rates and left federal budget talks in disarray 10 days before sweeping tax increases and government spending cuts take effect.
The Dow Jones industrial average fell 140 points to 13,171 in the opening minutes of trading, a decline of 1 percent. The Standard & Poor's 500 index fell 15 points to 1,428. The Nasdaq composite index fell 52 to 2,997.
The House bill would have raised taxes on Americans making at least $1 million per year and locked in decade-old tax cuts for Americans making less. Taxes will rise for almost all Americans on Jan. 1 unless Congress acts.
House Speaker John Boehner had presented what he called Plan B while he negotiated with the White House on avoiding the sweeping tax increases and spending cuts, a combination known as the "fiscal cliff."
But Boehner scrapped a vote on Plan B on Thursday night after it became clear that it did not have enough support in the Republican-led House to secure passage. He called on the White House and the Democratic-led Senate to work something out.
The House will not meet again until after Christmas, if then.
Technology stocks were among the hardest hit Friday in early trading. Tech stocks in the S&P 500 were down 1.5 percent as a group. Apple, the most valuable company in the country, fell $10.04, or 2 percent, to $511.69.
It was not the first time that Wall Street expressed worry about "fiscal cliff" talks.
On the day after the election, when voters returned divided government to power, the Dow dropped 312 points. On Nov. 14, when President Barack Obama insisted on higher tax rates for the wealthy, the Dow dropped 185 points.
Stocks closed sharply lower Friday in Asia after House Republicans canceled their vote. The Nikkei index in Japan fell almost 1 percent, and Hong Kong's Hang Seng Index dropped 0.7 percent. Stocks were also lower in Europe.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note fell 0.06 percentage point to 1.74 percent, an indication that investors were moving money out of stocks and into safer government bonds.
The price of oil fell $2.02, or 2.2 percent, to $88.12 per barrel.
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Insight: Wall Street, facing fiercer watchdog, flees U.S. power markets
Labels: BusinessNEW YORK (Reuters) - When federal regulators proposed a six-month penalty on JPMorgan Chase & Co's electricity trading arm last month, they took aim at what is now a rare sight on Wall Street: a large and growing power sales business.
After five years of rapid and lucrative growth, the world's biggest investment banks are now dramatically scaling back their U.S. power operations, a Reuters analysis of electricity sales has found.
In 2008, when they were most active in the market, the 15 biggest banks sold enough electricity in the United States to power two out of every five residential customers for a year, Reuters found. By last year, their sales would only power about one out of every five customers.
The pull-back means fewer deep-pocketed players in an already shrinking $200 billion U.S. physical power market and strongly invites the question of who will fill the banks' role of cushioning the risks of buying and selling in one of the world's most volatile commodities.
"If big banks leave the market . . . it means that somebody else has to absorb those risks. And it could be utilities or consumers - those would be the two leading candidates," said Craig Pirrong, a University of Houston professor and expert in energy trade regulation.
Others cheer the exit as a potential win for consumers.
"All the banks are doing is feasting on overly complicated market rules to find vulnerabilities, which they pounce on to make large short-term profits," said Tyson Slocum of Public Citizen, a consumer advocacy group.
Regardless, some electricity buyers are already expressing nervousness about JPMorgan's penalty. The bank had been one of just four banks, alongside Bank of America Merrill Lynch, Australia's Macquarie Group and Germany's Deutsche Bank, to sell more electricity in 2011 than in 2008, according to quarterly data sellers are required to provide to the Federal Energy Regulatory Commission (FERC), the country's top power market regulator.
Others have pulled back sharply. Total power market sales reported by Goldman Sachs in 2011 fell to one-sixth of their peak in 2005. Total sales by the banks have continued to slide in the first nine months of 2012 and are almost half the level of a year ago.
There are many reasons for the decline. Power prices have fallen to 10-year lows across most of the United States thanks to an abundance of cheap natural gas. With decades worth of cheap fuel ahead, fewer utilities have been looking to hedge their output; tough new capital requirements and regulations banning proprietary deals have cut into commodity trading; and some European banks, facing a persistent debt crisis back home, have fled dollar-intensive businesses.
But many bankers and analysts see a more alarming cause for the pull-back by banks: the risk that a more aggressive FERC may target them for anything suggestive of nefarious trading.
BANKS' SLICE SHRINKS FASTER THAN PIE
While the total value of the U.S. physical power market has shrunk in recent years, the banks' share has fallen faster.
At their height in 2008, banks sold $46.2 billion worth of electricity across all products, or about 15 percent of the U.S. physical power market. In 2011, they sold $17.5 billion, or about 9 percent. In the first quarter of this year, their share was down to just under 7 percent, FERC data show.
Reuters gauged each bank's footprint in the power sector by analyzing quarterly logs of physical power transactions they have filed with FERC since 2002. Reuters shared the data with each bank represented in the filings, and while all declined to comment publicly for this article, none disputed the figures.
"The pie is definitely shrinking and has been for a few years," said the global head of one bank's power operations. "Our hope is that we are nearing the bottom."
Some of that gap has been filled by hedge funds or merchant traders not facing the same limitations as banks; but, say traders, some of that liquidity has simply evaporated.
ANXIOUS CUSTOMERS
FERC's stepped-up enforcement has grown increasingly apparent since 2005, when Congress beefed-up its penalty powers to help prevent another Enron scandal.
In November, the agency imposed the temporary ban on JPMorgan's physical power trading - over no more than a document discovery dispute in an investigation that is not yet finished. The ban will limit JPMorgan's ability to sell power at profitable rates for six months starting in April 2013.
Asked about the ban by Reuters, JPMorgan Chase CEO Jamie Dimon brushed it off this month as "not that big a deal" for the bank, which is contesting the punishment.
Not everyone is so blasé.
Several customers of the bank -- which includes a range of local utilities from Palo Alto to Seattle -- expressed worries about the impact on their routine power purchases.
"I don't think we are going to get any bid (from JP Morgan) because it takes away their vested interest in getting into these trades," said Yakov Levin, manager of the power department for the Town of Hudson, Massachusetts, which has bought power from the bank.
The California city of Palo Alto "took steps immediately to ensure we wouldn't set up any more deals with (JPMorgan) during the ban," said Debra Katz, who handles communications for the city's utility. It wasn't ideal since "we've been very happy with our transactions with JPMorgan in the past."
JPMorgan spokeswoman Jennifer Zuccarelli said the bank has been in contact with its clients regarding the ban and sought clarification from FERC to make sure it will not impact pre-existing contracts.
The bank's trading counterparties are also taking notice. One trader who has bought power from JPMorgan said any future deals with the bank must be "reviewed by our legal and regulatory departments".
FERC spokeswoman Mary O'Driscoll said the Commission is not worried about banks scaling back their electricity trading operations.
"Power markets ebb and flow and change all the time. Banks have their own reasons for leaving the market," she said.
BOOM AND BUST
Most banks entered the power sector after the California power crisis in 2000-2001, when several energy marketers like Enron were driven from the market by manipulation scandals, bankruptcy and other credit concerns. That left a financing gap in an industry that had recently become deregulated.
Wall Street sensed opportunity.
Between 2001 and 2005, FERC granted power marketing authority to at least eight banks. Others bought their way in: UK-based RBS launched a joint venture with trading powerhouse Sempra Energy in 2008.
"Everyone was seeing how much Goldman and Morgan (Stanley) were making," said one executive at a large bank that wound down its electricity operations after 2008. So banks started "chasing revenue" by poaching top traders from Wall Street's dominant duo and hiring promising up-and-comers from utilities, he said.
Banks make money in the sector by buying electricity from power generators or plants they own or operate. These often long-term agreements help make costs more predictable and projects more bankable for power providers. The deals also make sense to banks, who can then turn around and sell the power to utilities, cities and industrial users at a slight mark-up.
In all, the value of banks' physical power sales surged three-fold from 2003 to 2008, FERC data show. But the 2008 financial crisis - and its regulatory aftermath - accelerated Wall Street's retreat from the market.
RBS was forced to sell its Sempra Energy venture in 2010 after it was bailed out by the UK government. Bear Stearns and Merrill Lynch, both with large power books, were sold to rivals. Lehman Brothers went bankrupt.
Others simply found the costs exceeded the benefits of staying in the market. Credit Suisse lost over $100 million on Texas power trades that went sour at the peak of the financial crisis, according to a person familiar with the bank's operations at the time.
By 2009, Credit Suisse had decided to pull out of power trading because it was too capital intensive and as they faced restrictions on trading for the bank's own book, according to a person familiar with the firm's thinking.
'JIHAD' OR JUST BUSINESS?
Now, some in the industry worry the retreat is accelerating. Amid a glut of natural gas supply, the market's economics haven't improved much. But the potential costs have.
When FERC proposed fining Barclays for alleged market manipulation in October, the record $470 million penalty more than eclipsed all the bank's physical power sales revenue for the first nine months of 2012, FERC data show. Even Barclays' penalties for manipulating Libor - the global interest rate benchmark - were smaller.
"It used to be that they didn't have significant penalty authority. So if you messed up, whatever ill-gotten gains you got, you gave back," said Barbara Bourque, the former head of FERC's quarterly electric sales reporting, who helped Reuters analyze the agency's data.
"Now, they can put people out of business," said Bourque, who runs Energy Compliance Consulting in Phoenix, Arizona.
Besides Barclays and JPMorgan, FERC has also accused Deutsche Bank of market manipulation, though the agency is only seeking to impose a $1.5 million fine on the bank.
Deutsche Bank this month made deep cuts in its U.S. power trading division; Barclays stopped trading West Coast Markets a year ago. Both banks are contesting FERC's charges.
David Perlman, former chief counsel to Lehman's commodity trading business who is now a partner at the law firm of Bracewell & Giuliani, thinks the proceedings could further dampen banks' enthusiasm toward the power business.
"People are looking at the Deutsche Bank case and they are looking at the JPMorgan case and they are wondering what the rules are," Perlman said.
Former FERC Commissioner Marc Spitzer, now a partner at the law firm of Steptoe & Johnson, says the agency is simply doing its job.
"The argument that FERC is on a Jihad or a crusade against banks is not accurate," he said. Spitzer said FERC is just following up on tips it receives from the marketplace, which could come from regional regulators or even rival traders.
For now, at least, more cases like Barclays could be on the way. FERC has increasingly gone after market manipulators under the tenure of current enforcement chief Norman Bay.
During the last three years, 56 percent of 43 investigations opened by FERC involved market manipulation, according to a Reuters review of the agency's enforcement data. That compares with 42 percent of the 93 investigations opened by FERC in the three years prior to Bay's tenure.
Asked earlier this month by Reuters whether the agency is trying to push banks out of the power markets, FERC Chairman Jon Wellinghoff brushed off the suggestion.
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AP Sources: Jets could trade QBs Sanchez, Tebow
Labels: SportsFLORHAM PARK, N.J. (AP) — Mark Sanchez is no longer the face of the New York Jets. He could soon be a former member of the team.
And Tim Tebow might even beat him out the door.
A person with knowledge of the situation told The Associated Press on Thursday that the Jets will consider all of their options regarding the two quarterbacks during the offseason. That means both Sanchez and Tebow are in limbo and trades cannot be ruled out.
The person, who requested anonymity because the team's personnel plans are private, told the AP that the Jets have not made any determinations involving Sanchez or Tebow.
The Jets could be hard-pressed to trade or cut Sanchez, who is due $8.25 million in guarantees next season after having his contract extended last offseason.
But there are no such complications with Tebow, who will likely be traded or released after just one disappointing season in New York. Tebow has two years remaining on his contract, but would cost the Jets only a little more than $1 million against the salary cap if cut.
"Anything dealing with the future past Buffalo (the regular-season finale) will be handled after that," coach Rex Ryan said.
The futures of Ryan, general manager Mike Tannenbaum and offensive coordinator Tony Sparano also are uncertain.
Parting ways with Tebow, the immensely popular but little-used backup, appears a certainty, though, after he came to New York amid lots of hype but had little impact. The final indication that Tebow will not be part of the Jets' future came when Ryan went with Greg McElroy, the third-stringer, to start at quarterback instead of him against San Diego on Sunday.
"Sometimes, things just happen out of your control," Tebow said Wednesday. "Obviously, you might not be pleased with them or happy about it, but you just try to handle it as best you can."
There are several complications that could lead to Sanchez actually sticking around in New York — whether it's as a backup or starter. Sanchez, who received a contract extension in March, would cost the Jets a $17.1 million salary cap hit next season. They could, however, spread that amount over the next two seasons if he is cut after June 1.
New York could also find it difficult to find a trading partner to unload Sanchez, who isn't likely a very attractive option at the moment after turning the ball over 50 times since the start of last season. With Tannenbaum's status unclear, teams might not be willing to even talk to him about possible trades. Teams can't make deals or sign free agents until March.
If the Jets did wind up trading Sanchez, the salary cap hit for them would still be a costly $8.9 million.
"That didn't come from me or anything else," Ryan said of the trade rumors. "We have two games to play and that's where my focus is, so, that's news to me."
The Daily News reported Thursday, according to sources, that the Jets would be interested in Michael Vick and that the Eagles quarterback would come to New York if it was clear he would be the starter. The newspaper also said Ryan "loves" Vick.
"I'll just focus on the players we have on this roster instead of somebody else's players," Ryan said while laughing.
Sanchez, whom the Jets drafted fifth overall in 2009, was benched in favor of McElroy for at least the home finale Sunday against San Diego. Sanchez threw four interceptions and fumbled away the final offensive snap — and the Jets' playoff chances — in New York's 14-10 loss at Tennessee on Monday night.
He once drew comparisons to Joe Namath after helping the Jets to consecutive AFC title games in his first two seasons, but his lack of improvement the last two years have caused him to fall out of favor. Ryan was non-committal Thursday when asked about Sanchez's long-term future.
"Whether it's not a ringing endorsement or whatever, I have absolutely zero focus on that right now," he said. "Everybody knows I've been supportive of Mark Sanchez. I think he still has the skill set to be a good quarterback in this league and we've won a lot of games with him.
"Again, that's for another day."
Tebow was supposed to be the spark that got the offense going, but instead spent most of his time on the sideline. While he has been hampered the last month by two broken ribs, his numbers were far from special even before that. For the season, he has rushed for 102 yards on 32 carries and is 6 of 8 for 39 yards, and has a stunning zero touchdowns while participating in just 72 offensive snaps.
"I think anytime you look at those things, it's a combination of things, but I wouldn't use the words 'didn't work' at all," Sparano said. "We had a plan going into this thing, but obviously the plan always, at that particular time, was that Mark was the quarterback and Tim would have a role and to what degree the role was, if I remember correctly, it was one to 20 plays in a game. Some days it was eight, some days it was one, some days it was none."
But, many fans and media have said it appears Tebow never got a true opportunity to be the playmaker everyone expected.
"I'm not going to get into that fair shake, not fair shake, all of those kinds of things," Sparano said. "Tim played his role and has done his role as well as expected right now. In other words, he's done everything we've asked him to do so far."
Tebow repeatedly said he was "excited" to be a member of the Jets when he first came from Denver in a trade in March, and he reiterated that throughout the season. But he acknowledged that he was "a little bit disappointed" that Ryan chose McElroy to start over him — at least for Sunday.
Now, Tebow could be an ex-Jet less than a year after he came to New York with lots of expectations.
"I've always, since I was a young boy, believed in myself and the abilities that God has given me and I just look forward to having an opportunity to try to show those again," Tebow said. "I'm pretty positive and I look forward to the future and what's going to happen."
It won't be in New York, though. And the inability to consistently find a way to effectively use Tebow could end up costing Sparano his job, too.
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And Tim Tebow might even beat him out the door.
A person with knowledge of the situation told The Associated Press on Thursday that the Jets will consider all of their options regarding the two quarterbacks during the offseason. That means both Sanchez and Tebow are in limbo and trades cannot be ruled out.
The person, who requested anonymity because the team's personnel plans are private, told the AP that the Jets have not made any determinations involving Sanchez or Tebow.
The Jets could be hard-pressed to trade or cut Sanchez, who is due $8.25 million in guarantees next season after having his contract extended last offseason.
But there are no such complications with Tebow, who will likely be traded or released after just one disappointing season in New York. Tebow has two years remaining on his contract, but would cost the Jets only a little more than $1 million against the salary cap if cut.
"Anything dealing with the future past Buffalo (the regular-season finale) will be handled after that," coach Rex Ryan said.
The futures of Ryan, general manager Mike Tannenbaum and offensive coordinator Tony Sparano also are uncertain.
Parting ways with Tebow, the immensely popular but little-used backup, appears a certainty, though, after he came to New York amid lots of hype but had little impact. The final indication that Tebow will not be part of the Jets' future came when Ryan went with Greg McElroy, the third-stringer, to start at quarterback instead of him against San Diego on Sunday.
"Sometimes, things just happen out of your control," Tebow said Wednesday. "Obviously, you might not be pleased with them or happy about it, but you just try to handle it as best you can."
There are several complications that could lead to Sanchez actually sticking around in New York — whether it's as a backup or starter. Sanchez, who received a contract extension in March, would cost the Jets a $17.1 million salary cap hit next season. They could, however, spread that amount over the next two seasons if he is cut after June 1.
New York could also find it difficult to find a trading partner to unload Sanchez, who isn't likely a very attractive option at the moment after turning the ball over 50 times since the start of last season. With Tannenbaum's status unclear, teams might not be willing to even talk to him about possible trades. Teams can't make deals or sign free agents until March.
If the Jets did wind up trading Sanchez, the salary cap hit for them would still be a costly $8.9 million.
"That didn't come from me or anything else," Ryan said of the trade rumors. "We have two games to play and that's where my focus is, so, that's news to me."
The Daily News reported Thursday, according to sources, that the Jets would be interested in Michael Vick and that the Eagles quarterback would come to New York if it was clear he would be the starter. The newspaper also said Ryan "loves" Vick.
"I'll just focus on the players we have on this roster instead of somebody else's players," Ryan said while laughing.
Sanchez, whom the Jets drafted fifth overall in 2009, was benched in favor of McElroy for at least the home finale Sunday against San Diego. Sanchez threw four interceptions and fumbled away the final offensive snap — and the Jets' playoff chances — in New York's 14-10 loss at Tennessee on Monday night.
He once drew comparisons to Joe Namath after helping the Jets to consecutive AFC title games in his first two seasons, but his lack of improvement the last two years have caused him to fall out of favor. Ryan was non-committal Thursday when asked about Sanchez's long-term future.
"Whether it's not a ringing endorsement or whatever, I have absolutely zero focus on that right now," he said. "Everybody knows I've been supportive of Mark Sanchez. I think he still has the skill set to be a good quarterback in this league and we've won a lot of games with him.
"Again, that's for another day."
Tebow was supposed to be the spark that got the offense going, but instead spent most of his time on the sideline. While he has been hampered the last month by two broken ribs, his numbers were far from special even before that. For the season, he has rushed for 102 yards on 32 carries and is 6 of 8 for 39 yards, and has a stunning zero touchdowns while participating in just 72 offensive snaps.
"I think anytime you look at those things, it's a combination of things, but I wouldn't use the words 'didn't work' at all," Sparano said. "We had a plan going into this thing, but obviously the plan always, at that particular time, was that Mark was the quarterback and Tim would have a role and to what degree the role was, if I remember correctly, it was one to 20 plays in a game. Some days it was eight, some days it was one, some days it was none."
But, many fans and media have said it appears Tebow never got a true opportunity to be the playmaker everyone expected.
"I'm not going to get into that fair shake, not fair shake, all of those kinds of things," Sparano said. "Tim played his role and has done his role as well as expected right now. In other words, he's done everything we've asked him to do so far."
Tebow repeatedly said he was "excited" to be a member of the Jets when he first came from Denver in a trade in March, and he reiterated that throughout the season. But he acknowledged that he was "a little bit disappointed" that Ryan chose McElroy to start over him — at least for Sunday.
Now, Tebow could be an ex-Jet less than a year after he came to New York with lots of expectations.
"I've always, since I was a young boy, believed in myself and the abilities that God has given me and I just look forward to having an opportunity to try to show those again," Tebow said. "I'm pretty positive and I look forward to the future and what's going to happen."
It won't be in New York, though. And the inability to consistently find a way to effectively use Tebow could end up costing Sparano his job, too.
It's official, Andersen is new Wisconsin coach
Labels: SportsMADISON, Wis. (AP) — Several schools tried to lure Gary Andersen away from Utah State.
Wisconsin finally got him.
Andersen was officially hired as the Badgers' new coach Thursday, and will be formally introduced at a news conference Friday morning. He replaces Bret Bielema, who left the Badgers for Arkansas this month.
"I don't know if I can really have a word for how excited I am to be at Wisconsin and have this opportunity," Andersen said in a video on Wisconsin's website. "I know I'm humbled, I know I'm blessed."
The 48-year-old Andersen just completed his fourth and best season at Utah State. The 18th-ranked Aggies finished 11-2 with a bowl victory against Toledo and won the Western Athletic Conference. One of those losses was at Wisconsin, where the Aggies missed a 37-yard field goal in the final seconds to allow the Badgers to escape with a 16-14 win.
It's been a remarkable rise for a program that had been near the bottom of major college football for years, and stuck in distant third in its own state behind BYU and Utah. The Aggies won nine games in the previous four seasons before Andersen took over. The last football coach to finish his tenure in Logan, Utah, with a winning record was Phil Krueger who went 21-12 from 1973-75.
Andersen drew interest from California, Colorado and Kentucky last month, but decided to pass on those opportunities and received a contract extension from Utah State.
When Wisconsin called, however, Andersen couldn't resist.
"It all came together," he said in a video on Wisconsin's website. "By no means was I sitting out there going, 'I've got to have a job, I've got to have a job.' But as soon as this one popped open, to me, this was a special, special place."
Before Andersen left Logan, Utah, however, he called his players — all 107 of them — so they would hear the news that he was leaving from him and not on TV or Twitter.
"I couldn't tell them yet that I had taken the job," Andersen told UWBadgers.com. "But I told them if I was offered the job I was going to take the job. There were a bunch of tears and hard conversations."
Andersen replaces Bielema, who left Wisconsin on Dec. 4, three days after the Badgers routed Nebraska to win the Big Ten title and a school-record third straight trip to the Rose Bowl. Athletic director Barry Alvarez has agreed to coach Wisconsin in the bowl at the request of the players.
Though the Badgers' 8-5 record going into the Rose Bowl is their worst since 2008, Andersen is inheriting a team loaded with talent through Wisconsin will lose Montee Ball, who set the major college record for career touchdowns this year and tied the single-season mark last year, along with linebacker Mike Taylor and standout defensive backs Marcus Cromartie and Devin Smith.
The Badgers still have James White or Melvin Gordon, who rushed for a total of almost 1,400 yards and 15 touchdowns. Jared Abbrederis has led the Badgers in receiving each of the last two seasons, and Joel Stave showed promise before the freshman broke his collarbone. Disruptive linebacker Chris Borland, who is second with 4 1/2 sacks and 95 tackles despite missing two games, also is expected back.
And while this will be Andersen's first job in the Midwest, one Big Ten opponent has no doubt he can succeed. When Alvarez was considering Andersen, he called Ohio State coach Urban Meyer, who had Andersen on his staff at Utah in 2004, when the Utes went 12-0 and won the Fiesta Bowl.
"(Meyer has) had some very good assistants," Alvarez said on UWBadgers.com. "Urban told me that Gary is in the top five of all of them; he's the real deal. I said, 'Would he fit here? Would he fit in the Big Ten?' He said, 'Absolutely.'"
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Wisconsin finally got him.
Andersen was officially hired as the Badgers' new coach Thursday, and will be formally introduced at a news conference Friday morning. He replaces Bret Bielema, who left the Badgers for Arkansas this month.
"I don't know if I can really have a word for how excited I am to be at Wisconsin and have this opportunity," Andersen said in a video on Wisconsin's website. "I know I'm humbled, I know I'm blessed."
The 48-year-old Andersen just completed his fourth and best season at Utah State. The 18th-ranked Aggies finished 11-2 with a bowl victory against Toledo and won the Western Athletic Conference. One of those losses was at Wisconsin, where the Aggies missed a 37-yard field goal in the final seconds to allow the Badgers to escape with a 16-14 win.
It's been a remarkable rise for a program that had been near the bottom of major college football for years, and stuck in distant third in its own state behind BYU and Utah. The Aggies won nine games in the previous four seasons before Andersen took over. The last football coach to finish his tenure in Logan, Utah, with a winning record was Phil Krueger who went 21-12 from 1973-75.
Andersen drew interest from California, Colorado and Kentucky last month, but decided to pass on those opportunities and received a contract extension from Utah State.
When Wisconsin called, however, Andersen couldn't resist.
"It all came together," he said in a video on Wisconsin's website. "By no means was I sitting out there going, 'I've got to have a job, I've got to have a job.' But as soon as this one popped open, to me, this was a special, special place."
Before Andersen left Logan, Utah, however, he called his players — all 107 of them — so they would hear the news that he was leaving from him and not on TV or Twitter.
"I couldn't tell them yet that I had taken the job," Andersen told UWBadgers.com. "But I told them if I was offered the job I was going to take the job. There were a bunch of tears and hard conversations."
Andersen replaces Bielema, who left Wisconsin on Dec. 4, three days after the Badgers routed Nebraska to win the Big Ten title and a school-record third straight trip to the Rose Bowl. Athletic director Barry Alvarez has agreed to coach Wisconsin in the bowl at the request of the players.
Though the Badgers' 8-5 record going into the Rose Bowl is their worst since 2008, Andersen is inheriting a team loaded with talent through Wisconsin will lose Montee Ball, who set the major college record for career touchdowns this year and tied the single-season mark last year, along with linebacker Mike Taylor and standout defensive backs Marcus Cromartie and Devin Smith.
The Badgers still have James White or Melvin Gordon, who rushed for a total of almost 1,400 yards and 15 touchdowns. Jared Abbrederis has led the Badgers in receiving each of the last two seasons, and Joel Stave showed promise before the freshman broke his collarbone. Disruptive linebacker Chris Borland, who is second with 4 1/2 sacks and 95 tackles despite missing two games, also is expected back.
And while this will be Andersen's first job in the Midwest, one Big Ten opponent has no doubt he can succeed. When Alvarez was considering Andersen, he called Ohio State coach Urban Meyer, who had Andersen on his staff at Utah in 2004, when the Utes went 12-0 and won the Fiesta Bowl.
"(Meyer has) had some very good assistants," Alvarez said on UWBadgers.com. "Urban told me that Gary is in the top five of all of them; he's the real deal. I said, 'Would he fit here? Would he fit in the Big Ten?' He said, 'Absolutely.'"
Canadian Football Hall of Famer Eagle Keys dies at 89; won three Grey Cups
Labels: SportsVANCOUVER - Canadian Football Hall of Fame inductee Eagle Keys has died at the age of 89.
Keys played centre and linebacker for five years with the Montreal Alouettes (1949-51) and with the Edmonton Eskimos (1952-54), being named to three CFL all-star teams.
He became a coach after retiring as a player, starting as an assistant in Edmonton in 1955. He became the Eskimos' head coach in 1959, a job he held until 1963.
Keys also was the head coach of the Saskatchewan Roughriders (1965-70) and B.C. Lions (1971-75).
Keys played for two Grey Cup-winning teams and won one with the Roughriders in 1966.
He was inducted into the Canadian Football Hall of Fame as a builder in 1990.
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Keys played centre and linebacker for five years with the Montreal Alouettes (1949-51) and with the Edmonton Eskimos (1952-54), being named to three CFL all-star teams.
He became a coach after retiring as a player, starting as an assistant in Edmonton in 1955. He became the Eskimos' head coach in 1959, a job he held until 1963.
Keys also was the head coach of the Saskatchewan Roughriders (1965-70) and B.C. Lions (1971-75).
Keys played for two Grey Cup-winning teams and won one with the Roughriders in 1966.
He was inducted into the Canadian Football Hall of Fame as a builder in 1990.
Lebron shines brightest on every stage
Labels: Sports(Reuters) - LeBron James finally captured an elusive National Basketball Association title to cap a year where he silenced his critics and shared the spotlight with some unlikely players.
"Linsanity" became one of the new buzzwords in the NBA while a collegiate player took a sledgehammer to the record books and the Los Angeles Lakers made a blockbuster trade that rekindled memories of the team's "Showtime" era.
James, long considered the NBA's heir apparent to Hall of Famer Michael Jordan, finally delivered a performance worthy of that status with a championship in his ninth season, followed by a gold medal with the United States at the London Olympics.
A dominant force on the court, James had already earned the NBA's scoring title, Most Valuable Player honors and All-Star nods, but it took an elusive title, MVP honors for the regular season and NBA Finals to prove his detractors wrong.
The self proclaimed 'King James' became a player many NBA fans love to hate after going on national television in 2010 to announce his much-publicized move to Miami, but there is no denying his status as one of the game's greatest players.
"It was the hardest thing I've ever done as a basketball player," James said after winning the NBA title in June, beating Oklahoma City in the finals. "You just put a lot of hard work into it and you hope that one day it will pay off for you."
'LINSANITY' CRAZE
Basketball's marquee names were forced to share the limelight with undrafted Taiwanese-American Jeremy Lin, who went from an unknown to an overnight sensation after being thrust into the New York Knicks' starting lineup in February.
Lin burst onto the public consciousness after a masterful series of dynamic displays, scoring at least 20 points in nine of 10 games during a season-high seven-game win streak for the Knicks that sparked the "Linsanity" craze around the globe.
Crowds at New York's Madison Square Garden held an array of pun signs declaring "To Lin-finity and Beyond," "The Sky's the LINit" and "LINCREDIBLE," while a mid-February game in Toronto had one spectator holding a "By my VaLINtine" sign.
Lin's incredible run was undone by a late-season injury but that did not stop Time Magazine from naming him as one of the world's 100 most influential people. He was the only basketball player on a list that included President Barack Obama and billionaire investor Warren Buffet.
At the London Games, a star-studded American team led by James were one of the hottest favorites but were tested by an inspired Spain team before prevailing 107-100 in the gold-medal game to retain their Olympic title.
The victory capped a remarkable run for James, who was named Sports Illustrated's Sportsman of the Year, an award whose previous winners include boxer Muhammad Ali, golfer Jack Nicklaus and swimmer Michael Phelps.
GOLD MEDAL
It also put the finishing touches on an American sweep of basketball gold as the U.S. women collected their fifth consecutive Olympic gold, solidifying the country's dominance in a sport that has become much more competitive since active NBA players first participated in the Olympics in 1992.
The Lakers were the biggest story during the NBA's offseason after landing Dwight Howard in a 12-player trade that rekindled memories of the team's "Showtime" era from 1979-1989 with Hall of Famers Magic Johnson and Kareem Abdul-Jabbar.
Howard, a three-time defensive player of the year, joined a Lakers team that was already bursting with talent in the form of Kobe Bryant and Spain's Pau Gasol and still revelling in the acquisition of two-time league MVP Steve Nash a month earlier.
The massive trade immediately bolstered the Lakers championship credentials, a welcome development for a franchise that has suffered two straight early playoff exits since winning a 16th NBA title in 2010.
But despite the formidable Lakers lineup, the team stumbled out of the gate and their head coach was fired after a 1-4 start to the 2012-13 NBA as players were unable to grasp his new offensive system.
Some of the year's top stories even came from outside the professional ranks as Jack Taylor, a sophomore guard at Iowa's Grinnell College, shattered the National Collegiate Athletic Association (NCAA) scoring record with a 138-point performance in a Division III game.
The 22-year-old guard from Iowa's Grinnell College, drew national attention for his performance, which shattered the previous record of 113 points set in 1954.
Read More..
"Linsanity" became one of the new buzzwords in the NBA while a collegiate player took a sledgehammer to the record books and the Los Angeles Lakers made a blockbuster trade that rekindled memories of the team's "Showtime" era.
James, long considered the NBA's heir apparent to Hall of Famer Michael Jordan, finally delivered a performance worthy of that status with a championship in his ninth season, followed by a gold medal with the United States at the London Olympics.
A dominant force on the court, James had already earned the NBA's scoring title, Most Valuable Player honors and All-Star nods, but it took an elusive title, MVP honors for the regular season and NBA Finals to prove his detractors wrong.
The self proclaimed 'King James' became a player many NBA fans love to hate after going on national television in 2010 to announce his much-publicized move to Miami, but there is no denying his status as one of the game's greatest players.
"It was the hardest thing I've ever done as a basketball player," James said after winning the NBA title in June, beating Oklahoma City in the finals. "You just put a lot of hard work into it and you hope that one day it will pay off for you."
'LINSANITY' CRAZE
Basketball's marquee names were forced to share the limelight with undrafted Taiwanese-American Jeremy Lin, who went from an unknown to an overnight sensation after being thrust into the New York Knicks' starting lineup in February.
Lin burst onto the public consciousness after a masterful series of dynamic displays, scoring at least 20 points in nine of 10 games during a season-high seven-game win streak for the Knicks that sparked the "Linsanity" craze around the globe.
Crowds at New York's Madison Square Garden held an array of pun signs declaring "To Lin-finity and Beyond," "The Sky's the LINit" and "LINCREDIBLE," while a mid-February game in Toronto had one spectator holding a "By my VaLINtine" sign.
Lin's incredible run was undone by a late-season injury but that did not stop Time Magazine from naming him as one of the world's 100 most influential people. He was the only basketball player on a list that included President Barack Obama and billionaire investor Warren Buffet.
At the London Games, a star-studded American team led by James were one of the hottest favorites but were tested by an inspired Spain team before prevailing 107-100 in the gold-medal game to retain their Olympic title.
The victory capped a remarkable run for James, who was named Sports Illustrated's Sportsman of the Year, an award whose previous winners include boxer Muhammad Ali, golfer Jack Nicklaus and swimmer Michael Phelps.
GOLD MEDAL
It also put the finishing touches on an American sweep of basketball gold as the U.S. women collected their fifth consecutive Olympic gold, solidifying the country's dominance in a sport that has become much more competitive since active NBA players first participated in the Olympics in 1992.
The Lakers were the biggest story during the NBA's offseason after landing Dwight Howard in a 12-player trade that rekindled memories of the team's "Showtime" era from 1979-1989 with Hall of Famers Magic Johnson and Kareem Abdul-Jabbar.
Howard, a three-time defensive player of the year, joined a Lakers team that was already bursting with talent in the form of Kobe Bryant and Spain's Pau Gasol and still revelling in the acquisition of two-time league MVP Steve Nash a month earlier.
The massive trade immediately bolstered the Lakers championship credentials, a welcome development for a franchise that has suffered two straight early playoff exits since winning a 16th NBA title in 2010.
But despite the formidable Lakers lineup, the team stumbled out of the gate and their head coach was fired after a 1-4 start to the 2012-13 NBA as players were unable to grasp his new offensive system.
Some of the year's top stories even came from outside the professional ranks as Jack Taylor, a sophomore guard at Iowa's Grinnell College, shattered the National Collegiate Athletic Association (NCAA) scoring record with a 138-point performance in a Division III game.
The 22-year-old guard from Iowa's Grinnell College, drew national attention for his performance, which shattered the previous record of 113 points set in 1954.
New generation of QBs emerge but league faces threats
Labels: SportsMIAMI (Reuters) - A new generation of talented quarterbacks emerged in 2012 but a refereeing fiasco, worries over concussions and player behavior all left their mark on the National Football League (NFL).
The year was also a tantalizing tale of the Mannings with New York Giants quarterback Eli Manning winning his second Super Bowl title in four years with a win over New England in the same stadium where older brother Peyton played for Indianapolis.
After a year out with serious neck problems, Peyton Manning restarted his career with the Denver Broncos after 14 years with the Colts and quickly cast aside any doubts over his durability by leading his team to a playoff berth and division title.
Manning's revival came at the expense of Tim Tebow, the most talked about player in 2011, who has spent most of this year on the sidelines after being traded to the New York Jets.
'Tebow-mania' reached its peak in January when he led the Broncos to a playoff win over Pittsburgh but a crushing loss to the New England Patriots a week later was the last in a Denver uniform for the unorthodox quarterback.
Tebow's charisma, his noted religiosity and clean-cut good looks made him one of the most popular NFL players in years but that did not stop Jets head coach Rex Ryan leaving him as a bit-player and back-up to Mark Sanchez with most critics agreeing that Tebow's poor passing technique has hampered his career.
Tebow's fans understandably view 2012 as a year in which an exciting player's talent was wasted but in the big picture there has been no shortage of exciting new talent to enjoy in the NFL.
It was hard to imagine anyone exceeding the record-breaking impact made in 2011 by Carolina Panthers rookie quarterback Cam Newton but it did not take long for the top two picks in this year's NFL Draft, Indianapolis's Andrew Luck and Washington's Robert Griffin III respectively, to make an impact.
Luck ushered in the post-Manning era faster than anyone had imagined, with his outstanding passing and classy composure indicating he is a player who could enjoy similar dominance to his predecessor.
Griffin, or RG3 as he is widely known, is a different quarterback altogether - his speed and courage make him a genuine double-threat, able to rush but he is also, as critics of Tebow have noted, an accomplished pocket passer too.
Seattle's Russell Wilson and Miami's Ryan Tannehill have also made good impressions in their rookie years and with Tom Brady, Drew Brees, Aaron Rodgers, Ben Roethlisberger and the Mannings still on top of their game, it has become an era of unprecedented passing yards for quarterbacks.
NASTY UNDERBELLY
Given the key role quarterbacks play, the abundance of talent at the position should mark a golden-era for America's most popular league but the game has a nasty underbelly which has been revealed on several occasions this year.
The NFL has long been plagued by off-field problems, most notably domestic violence, gun crime and drunk driving, and there have been tragic examples of all three this year.
Kansas City Chiefs linebacker Jovan Belcher fatally shot his girlfriend at their home moments before killing himself in front of his coach and general manager at the team's training facility in December.
A week later, Dallas Cowboys defensive tackle Josh Brent was charged with intoxication manslaughter after the car he was driving flipped over and caught fire, killing team mate Jerry Brown, a passenger in the car.
In May, former San Diego Chargers linebacker Junior Seau, a 12-time Pro Bowl selection, was found dead at his home in May, with a self-inflicted gunshot wound to the chest.
The manner of Seau's death and his families willingness to let his brain be examined for evidence of the impact of repeated injuries from his playing days, brought the issue of concussions back into focus.
Over 1,500 former football players have sued the NFL over head injuries and there have been accusations that the league concealed links between the game and brain injuries.
The NFL has disputed those allegations and points to its intensive education work on the issue and also the stricter new regulations covering treatment of players who are concussed.
BOUNTY PROGRAM
Concern over the potential impact of excessive violence on players was also behind NFL Commissioner Roger Goodell's strong sanctions against the New Orleans Saints, a story that hung over the league for much of the year.
The Saints were accused of running a bounty program from 2009-2011 that gave players cash rewards for knocking opponents out of games.
While Saints head coach Sean Payton was suspended for the entire season and other members of the coaching staff received shorter bans, much of the attention was on the sanctions given to four players, all of whom had their punishments overturned.
The decision by former NFL Commissioner Paul Tagliabue, with little compelling reasoning behind it, was a strange end to an affair which did little good for the league's image.
That image also took a hit from the contract dispute with referees which led to an early season lockout and resulted in some farcical decisions By the replacement referees.
The dispute culminated in botched call in a nationally televised game that handed Seattle victory over Green Bay and caused so much outrage that a deal was swiftly reached for the regular refs to return in early in the season.
But while referee dispute, off-field troubles, bounty schemes and concussion fears generated plenty of negative attention for the league they did nothing to weaken the NFL's position as the dominant sport in North America and the top draw on U.S. television.
Read More..
The year was also a tantalizing tale of the Mannings with New York Giants quarterback Eli Manning winning his second Super Bowl title in four years with a win over New England in the same stadium where older brother Peyton played for Indianapolis.
After a year out with serious neck problems, Peyton Manning restarted his career with the Denver Broncos after 14 years with the Colts and quickly cast aside any doubts over his durability by leading his team to a playoff berth and division title.
Manning's revival came at the expense of Tim Tebow, the most talked about player in 2011, who has spent most of this year on the sidelines after being traded to the New York Jets.
'Tebow-mania' reached its peak in January when he led the Broncos to a playoff win over Pittsburgh but a crushing loss to the New England Patriots a week later was the last in a Denver uniform for the unorthodox quarterback.
Tebow's charisma, his noted religiosity and clean-cut good looks made him one of the most popular NFL players in years but that did not stop Jets head coach Rex Ryan leaving him as a bit-player and back-up to Mark Sanchez with most critics agreeing that Tebow's poor passing technique has hampered his career.
Tebow's fans understandably view 2012 as a year in which an exciting player's talent was wasted but in the big picture there has been no shortage of exciting new talent to enjoy in the NFL.
It was hard to imagine anyone exceeding the record-breaking impact made in 2011 by Carolina Panthers rookie quarterback Cam Newton but it did not take long for the top two picks in this year's NFL Draft, Indianapolis's Andrew Luck and Washington's Robert Griffin III respectively, to make an impact.
Luck ushered in the post-Manning era faster than anyone had imagined, with his outstanding passing and classy composure indicating he is a player who could enjoy similar dominance to his predecessor.
Griffin, or RG3 as he is widely known, is a different quarterback altogether - his speed and courage make him a genuine double-threat, able to rush but he is also, as critics of Tebow have noted, an accomplished pocket passer too.
Seattle's Russell Wilson and Miami's Ryan Tannehill have also made good impressions in their rookie years and with Tom Brady, Drew Brees, Aaron Rodgers, Ben Roethlisberger and the Mannings still on top of their game, it has become an era of unprecedented passing yards for quarterbacks.
NASTY UNDERBELLY
Given the key role quarterbacks play, the abundance of talent at the position should mark a golden-era for America's most popular league but the game has a nasty underbelly which has been revealed on several occasions this year.
The NFL has long been plagued by off-field problems, most notably domestic violence, gun crime and drunk driving, and there have been tragic examples of all three this year.
Kansas City Chiefs linebacker Jovan Belcher fatally shot his girlfriend at their home moments before killing himself in front of his coach and general manager at the team's training facility in December.
A week later, Dallas Cowboys defensive tackle Josh Brent was charged with intoxication manslaughter after the car he was driving flipped over and caught fire, killing team mate Jerry Brown, a passenger in the car.
In May, former San Diego Chargers linebacker Junior Seau, a 12-time Pro Bowl selection, was found dead at his home in May, with a self-inflicted gunshot wound to the chest.
The manner of Seau's death and his families willingness to let his brain be examined for evidence of the impact of repeated injuries from his playing days, brought the issue of concussions back into focus.
Over 1,500 former football players have sued the NFL over head injuries and there have been accusations that the league concealed links between the game and brain injuries.
The NFL has disputed those allegations and points to its intensive education work on the issue and also the stricter new regulations covering treatment of players who are concussed.
BOUNTY PROGRAM
Concern over the potential impact of excessive violence on players was also behind NFL Commissioner Roger Goodell's strong sanctions against the New Orleans Saints, a story that hung over the league for much of the year.
The Saints were accused of running a bounty program from 2009-2011 that gave players cash rewards for knocking opponents out of games.
While Saints head coach Sean Payton was suspended for the entire season and other members of the coaching staff received shorter bans, much of the attention was on the sanctions given to four players, all of whom had their punishments overturned.
The decision by former NFL Commissioner Paul Tagliabue, with little compelling reasoning behind it, was a strange end to an affair which did little good for the league's image.
That image also took a hit from the contract dispute with referees which led to an early season lockout and resulted in some farcical decisions By the replacement referees.
The dispute culminated in botched call in a nationally televised game that handed Seattle victory over Green Bay and caused so much outrage that a deal was swiftly reached for the regular refs to return in early in the season.
But while referee dispute, off-field troubles, bounty schemes and concussion fears generated plenty of negative attention for the league they did nothing to weaken the NFL's position as the dominant sport in North America and the top draw on U.S. television.
MetLife says 2013 forecast assumes no buybacks
Labels: Business(Reuters) - MetLife Inc's 2013 earnings forecast assumes no share buybacks, the company's chief executive said on Thursday.
The Federal Reserve has twice blocked MetLife from buying back stock, a consequence of the bank holding company charter the insurer is trying to shed.
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The Federal Reserve has twice blocked MetLife from buying back stock, a consequence of the bank holding company charter the insurer is trying to shed.
Higher operating costs weigh on Imagination Tech
Labels: BusinessLONDON (Reuters) - Profit growth at Imagination Technologies has been dampened by higher research costs, overshadowing a 90 percent jump in shipments of chips containing its graphics technology used in products like Apple's iPad.
Shares in the British company reversed early gains and were trading 4 percent lower as analysts said the operating expenses had weighed on earnings.
Imagination, which counts both Apple and Intel as shareholders, said the rise in operating expenses to 43.8 million pounds in the first half from 31.4 million a year ago was down to increasing research costs and recruiting more staff.
It said it expected the rate of operating expense growth to slow in the second half and in the next year.
Analysts at UBS said the higher expenses had offset a solid revenue performance.
"While Imagination highlights that the speed of increase (in operating expenses) is short term and in response to a growing customer base, it poses a significant headwind to the profit growth expected," they said on Wednesday.
Imagination, whose shares were trading at 429 pence by 6:41 a.m. ET, posted adjusted pretax profit of 16.8 million pounds ($27 million) on revenue of 71.4 million, up 27 percent and beating analysts' expectations of 68 million.
Some 237 million chips containing its technology were shipped in the six months through October, it said, putting the group on track to reach 500 million chips for the full year and 1 billion annually by 2016.
KEY MARKETS
Imagination licenses its technology to customers like Apple for the iPhone and MediaTek for lower-end smartphones.
Chief Executive Hossein Yassaie said on average 1.5 million smartphones, tablets and other devices were rolling off production lines carrying the company's graphics and video technology every day.
"Overall we are hitting the key markets from high end to low end," he said in an interview.
Some analysts have fretted that Imagination faces growing competition from chipmakers like Qualcomm, Broadcom and Intel using their own graphics technology, and from a more aggressive push into graphics by ARM Holdings.
Yassaie responded to concerns that Intel was increasingly favoring its own graphics technology rather than licensing it from Imagination, speculation that analysts say was triggered by some leaked Intel slides in the United States.
"We have very strong current and ongoing relationship with Intel and we expect significant volume ramp-up with them over years to come," he said.
Imagination also wants to grow its microprocessor business and is battling U.S. mobile chipmaker CEVA to buy the operating business of MIPS Technologies.
CEVA said on Tuesday it would pay $90 million for MIPS' microprocessor operating business, trumping Imagination's offer for a second time.
Yassaie had no update on Imagination's next move but said the group would continue its processor drive with or without MIPS. "Right now we are in process of working through the acquisition," he said. ($1 = 0.6210 British pounds)
Read More..
Shares in the British company reversed early gains and were trading 4 percent lower as analysts said the operating expenses had weighed on earnings.
Imagination, which counts both Apple and Intel as shareholders, said the rise in operating expenses to 43.8 million pounds in the first half from 31.4 million a year ago was down to increasing research costs and recruiting more staff.
It said it expected the rate of operating expense growth to slow in the second half and in the next year.
Analysts at UBS said the higher expenses had offset a solid revenue performance.
"While Imagination highlights that the speed of increase (in operating expenses) is short term and in response to a growing customer base, it poses a significant headwind to the profit growth expected," they said on Wednesday.
Imagination, whose shares were trading at 429 pence by 6:41 a.m. ET, posted adjusted pretax profit of 16.8 million pounds ($27 million) on revenue of 71.4 million, up 27 percent and beating analysts' expectations of 68 million.
Some 237 million chips containing its technology were shipped in the six months through October, it said, putting the group on track to reach 500 million chips for the full year and 1 billion annually by 2016.
KEY MARKETS
Imagination licenses its technology to customers like Apple for the iPhone and MediaTek for lower-end smartphones.
Chief Executive Hossein Yassaie said on average 1.5 million smartphones, tablets and other devices were rolling off production lines carrying the company's graphics and video technology every day.
"Overall we are hitting the key markets from high end to low end," he said in an interview.
Some analysts have fretted that Imagination faces growing competition from chipmakers like Qualcomm, Broadcom and Intel using their own graphics technology, and from a more aggressive push into graphics by ARM Holdings.
Yassaie responded to concerns that Intel was increasingly favoring its own graphics technology rather than licensing it from Imagination, speculation that analysts say was triggered by some leaked Intel slides in the United States.
"We have very strong current and ongoing relationship with Intel and we expect significant volume ramp-up with them over years to come," he said.
Imagination also wants to grow its microprocessor business and is battling U.S. mobile chipmaker CEVA to buy the operating business of MIPS Technologies.
CEVA said on Tuesday it would pay $90 million for MIPS' microprocessor operating business, trumping Imagination's offer for a second time.
Yassaie had no update on Imagination's next move but said the group would continue its processor drive with or without MIPS. "Right now we are in process of working through the acquisition," he said. ($1 = 0.6210 British pounds)
Delta expects 2013 profit growth, plans returns to shareholders
Labels: Business(Reuters) - Delta Air Lines said on Wednesday that it expected profit growth in 2013 and would introduce a plan to return cash to shareholders.
Chief Executive Officer Richard Anderson said during the carrier's investor meeting webcast that Delta, the No. 2 U.S. airline behind United Continental Holdings Inc , expected a profit of $1.6 billion for this year. He said 2013 would bring a "solid improvement" over 2012.
Delta said it expected fourth-quarter earnings of $200 million to $250 million, excluding items, despite disruptions caused by superstorm Sandy. The storm barreled through the U.S. Northeast in late October and led airlines to cancel thousands of flights as major New York area airports shut down.
The carrier said it expected to announce a capital deployment strategy next year, with the program starting in January 2014.
U.S. carriers have merged, stopped flying unprofitable routes and raised ticket prices to recover in recent years. Airlines have also created new revenue streams with baggage and food fees, moves that have helped deliver profits in the face of volatile fuel prices.
Delta supports industry consolidation, Anderson said, predicting that AMR Corp's American Airlines and US Airways Group Inc will reach a deal soon. The two airlines are in talks on a potential merger.
Delta, which acquired Northwest Airlines in 2008, has cut costs while positioning itself for growth. Just on Tuesday, it announced the purchase of a 49 percent stake in British carrier Virgin Atlantic and a joint venture that will give it expanded access at London's Heathrow Airport.
Read More..
Chief Executive Officer Richard Anderson said during the carrier's investor meeting webcast that Delta, the No. 2 U.S. airline behind United Continental Holdings Inc , expected a profit of $1.6 billion for this year. He said 2013 would bring a "solid improvement" over 2012.
Delta said it expected fourth-quarter earnings of $200 million to $250 million, excluding items, despite disruptions caused by superstorm Sandy. The storm barreled through the U.S. Northeast in late October and led airlines to cancel thousands of flights as major New York area airports shut down.
The carrier said it expected to announce a capital deployment strategy next year, with the program starting in January 2014.
U.S. carriers have merged, stopped flying unprofitable routes and raised ticket prices to recover in recent years. Airlines have also created new revenue streams with baggage and food fees, moves that have helped deliver profits in the face of volatile fuel prices.
Delta supports industry consolidation, Anderson said, predicting that AMR Corp's American Airlines and US Airways Group Inc will reach a deal soon. The two airlines are in talks on a potential merger.
Delta, which acquired Northwest Airlines in 2008, has cut costs while positioning itself for growth. Just on Tuesday, it announced the purchase of a 49 percent stake in British carrier Virgin Atlantic and a joint venture that will give it expanded access at London's Heathrow Airport.
Costco profit jumps despite light membership fee growth
Labels: Business(Reuters) - Costco Wholesale Corp's quarterly earnings beat Wall Street estimates, but the largest U.S. warehouse club chain collected less in membership fees than some analysts anticipated.
Shares of Costco were up 0.8 percent at $99.11 in morning Nasdaq trading after a slight decline earlier in the session.
Members pay up to $110 per year to shop at Costco's cavernous stores and website, where they can buy everything from carrots to kayaks. The fee revenue pads Costco's bottom line and allows it to offer low prices and take in thin profit margins on items it sells.
Membership fee revenue rose 14.3 percent to $511 million in the first quarter ended on November 25, Costco said. The Issaquah, Washington-based chain raised fees for most U.S. and Canadian members by 10 percent on November 1, 2011.
The fee increase seems to have had little to no impact on renewal rates, Chief Financial Officer Richard Galanti said during a conference call.
Still, the increase in membership fee revenue was not as great as some had anticipated, and growth declined from a rise of about 18 percent in the preceding quarter.
BMO Capital Markets analyst Karen Short said she had expected membership fee revenue of $534 million, while Sanford Bernstein analyst Colin McGranahan said the $511 million in fees was $4 million shy of his forecast.
Costco said it had earned $416 million, or 95 cents per share, in the quarter, up 30 percent from $320 million, or 73 cents per share, a year earlier.
Analysts on average were expecting a profit of 93 cents per share, according to Thomson Reuters I/B/E/S.
"While results were solid and clean in absolute terms, we believe this was largely line with expectations and unlikely to meaningfully move the stock," said McGranahan, who rates Costco at "underperform."
Lower-than-expected interest expenses and taxes helped boost earnings per share, said Short, who has an "outperform" rating on the shares.
Sales excluding membership fees rose 9.5 percent to $23.2 billion, just below the figure Costco gave last month, when it said quarterly sales rose 10 percent to $23.21 billion.
Sales at stores open at least a year rose 7 percent, including the effects of higher fuel prices. Excluding the impact of fuel and foreign currencies, Costco recorded 6 percent same-store sales growth.
Costco said it planned to open a new warehouse store in South Korea before the end of 2012. It operates 621 warehouses, including 448 in the United States and Puerto Rico, 85 in Canada, 32 in Mexico, and 23 in Britain. For all of fiscal 2013, it plans to open up to 30 new stores.
On November 28, Costco announced a $7 special dividend, set to be paid later this month.
The special dividend amounted to roughly $3 billion, the largest payout so far from any company ahead of a likely increase in the U.S. dividend tax. The chain will use proceeds from a $3.5 billion debt offering to pay for the dividend.
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Shares of Costco were up 0.8 percent at $99.11 in morning Nasdaq trading after a slight decline earlier in the session.
Members pay up to $110 per year to shop at Costco's cavernous stores and website, where they can buy everything from carrots to kayaks. The fee revenue pads Costco's bottom line and allows it to offer low prices and take in thin profit margins on items it sells.
Membership fee revenue rose 14.3 percent to $511 million in the first quarter ended on November 25, Costco said. The Issaquah, Washington-based chain raised fees for most U.S. and Canadian members by 10 percent on November 1, 2011.
The fee increase seems to have had little to no impact on renewal rates, Chief Financial Officer Richard Galanti said during a conference call.
Still, the increase in membership fee revenue was not as great as some had anticipated, and growth declined from a rise of about 18 percent in the preceding quarter.
BMO Capital Markets analyst Karen Short said she had expected membership fee revenue of $534 million, while Sanford Bernstein analyst Colin McGranahan said the $511 million in fees was $4 million shy of his forecast.
Costco said it had earned $416 million, or 95 cents per share, in the quarter, up 30 percent from $320 million, or 73 cents per share, a year earlier.
Analysts on average were expecting a profit of 93 cents per share, according to Thomson Reuters I/B/E/S.
"While results were solid and clean in absolute terms, we believe this was largely line with expectations and unlikely to meaningfully move the stock," said McGranahan, who rates Costco at "underperform."
Lower-than-expected interest expenses and taxes helped boost earnings per share, said Short, who has an "outperform" rating on the shares.
Sales excluding membership fees rose 9.5 percent to $23.2 billion, just below the figure Costco gave last month, when it said quarterly sales rose 10 percent to $23.21 billion.
Sales at stores open at least a year rose 7 percent, including the effects of higher fuel prices. Excluding the impact of fuel and foreign currencies, Costco recorded 6 percent same-store sales growth.
Costco said it planned to open a new warehouse store in South Korea before the end of 2012. It operates 621 warehouses, including 448 in the United States and Puerto Rico, 85 in Canada, 32 in Mexico, and 23 in Britain. For all of fiscal 2013, it plans to open up to 30 new stores.
On November 28, Costco announced a $7 special dividend, set to be paid later this month.
The special dividend amounted to roughly $3 billion, the largest payout so far from any company ahead of a likely increase in the U.S. dividend tax. The chain will use proceeds from a $3.5 billion debt offering to pay for the dividend.
Nasdaq to buy Thomson Reuters PR, IR units for $390 million
Labels: Business(Reuters) - Nasdaq OMX Group Inc said on Wednesday it agreed to buy Thomson Reuters Corp's investor relations, public relations and multimedia services units for $390 million, as the exchange operator builds businesses that do not depend on trading.
The all-cash deal will add to Nasdaq's earnings within 12 months of closing, excluding transaction-related costs, the company said.
Nasdaq is looking to sell additional services to the companies that list on its exchanges as a way to draw more revenue from its corporate customers. It already gets more than 70 percent of its revenue from businesses that do not depend on transactions.
The Thomson Reuters units that Nasdaq is buying help companies communicate with investors and media and create and distribute video presentations.
Nasdaq already provides some of these services, but the acquisition will broaden its offerings and make them more global, bringing 7,000 new clients in more than 60 countries.
The units Nasdaq is acquiring generated $233 million of revenue in the 12 months ended September 30. That figure represents about 2 percent of Thomson Reuters' revenue in that period, but more than 7 percent of Nasdaq's revenue.
Nasdaq said it is funding the deal with available cash - the company had $438 million of cash and equivalents on its books at September 30 - and through its $750 million line of credit.
Nasdaq considered buying back shares but decided this deal would offer a higher return to shareholders, Chief Executive Robert Greifeld said on a conference call.
The deal is expected to close in the first half of 2013. Nasdaq has made a binding offer for the units but will not enter a definitive agreement until both companies talk to relevant unions and works councils.
Thomson Reuters has been trying to accelerate growth in the wake of the financial crisis after customers in banking and finance laid off tens of thousands of employees to cut costs.
As part of that effort, it is rejiggering assets in its portfolio.
The units the company is selling "didn't really integrate across the entire platform," said Drew McReynolds, an equity analyst covering telecom and media companies at RBC Capital Markets in Toronto.
Earlier this year, Thomson Reuters sold its healthcare business to private equity firm Veritas Capital for $1.25 billion in cash.
But Thomson Reuters is also buying assets where they help its main businesses. In July, it said it was buying foreign exchange platform FX Alliance Inc for $625 million.
Reuters is a unit of Thomson Reuters.
Bank of America Merrill Lynch and Barclays Capital advised Nasdaq on the deal. JPMorgan advised Thomson Reuters.
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The all-cash deal will add to Nasdaq's earnings within 12 months of closing, excluding transaction-related costs, the company said.
Nasdaq is looking to sell additional services to the companies that list on its exchanges as a way to draw more revenue from its corporate customers. It already gets more than 70 percent of its revenue from businesses that do not depend on transactions.
The Thomson Reuters units that Nasdaq is buying help companies communicate with investors and media and create and distribute video presentations.
Nasdaq already provides some of these services, but the acquisition will broaden its offerings and make them more global, bringing 7,000 new clients in more than 60 countries.
The units Nasdaq is acquiring generated $233 million of revenue in the 12 months ended September 30. That figure represents about 2 percent of Thomson Reuters' revenue in that period, but more than 7 percent of Nasdaq's revenue.
Nasdaq said it is funding the deal with available cash - the company had $438 million of cash and equivalents on its books at September 30 - and through its $750 million line of credit.
Nasdaq considered buying back shares but decided this deal would offer a higher return to shareholders, Chief Executive Robert Greifeld said on a conference call.
The deal is expected to close in the first half of 2013. Nasdaq has made a binding offer for the units but will not enter a definitive agreement until both companies talk to relevant unions and works councils.
Thomson Reuters has been trying to accelerate growth in the wake of the financial crisis after customers in banking and finance laid off tens of thousands of employees to cut costs.
As part of that effort, it is rejiggering assets in its portfolio.
The units the company is selling "didn't really integrate across the entire platform," said Drew McReynolds, an equity analyst covering telecom and media companies at RBC Capital Markets in Toronto.
Earlier this year, Thomson Reuters sold its healthcare business to private equity firm Veritas Capital for $1.25 billion in cash.
But Thomson Reuters is also buying assets where they help its main businesses. In July, it said it was buying foreign exchange platform FX Alliance Inc for $625 million.
Reuters is a unit of Thomson Reuters.
Bank of America Merrill Lynch and Barclays Capital advised Nasdaq on the deal. JPMorgan advised Thomson Reuters.
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