BlackBerry move away from consumers unlikely to stem decline

<div dir="ltr" style="text-align: left;" trbidi="on"> <div class="separator" style="clear: both; text-align: center;"> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3387udYupArgi7iZZE4wZhgXAc6vutm2qvKjXwynwj75OV18gPkWkVEklmv3uIgLHhPUSN4HJEL3itvyjVIjCp0K1VVOUBfEZZ18TSodEAVptr7jIf5DIbeqW98DuiGjlbg46kiSLIeY/s1600/blackberry-logo.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3387udYupArgi7iZZE4wZhgXAc6vutm2qvKjXwynwj75OV18gPkWkVEklmv3uIgLHhPUSN4HJEL3itvyjVIjCp0K1VVOUBfEZZ18TSodEAVptr7jIf5DIbeqW98DuiGjlbg46kiSLIeY/s320/blackberry-logo.jpg" width="320" /></a></div> <h2 style="text-align: left;"> <a href="http://www.newsupdate360.com/2013/09/blackberry-move-away-from-consumers.html">BlackBerry move away from consumers unlikely to stem decline</a></h2> <div> <br /></div> <div> <div> BlackBerry Ltd's plan to retreat from the consumer market in favor of its traditional strength serving businesses and governments is widely seen as a desperate move that industry watchers warn will only accelerate its downward spiral.</div> <div> <br /></div> <div> The strategic shift and dramatic restructuring are fueling fears about BlackBerry's long-term viability. The uncertainty created could easily push a growing number of its telecom partners, business customers and consumers to abandon the platform.</div> <div> <br /></div> <div> "Perception is nine tenths of reality and if customer and supplier confidence continues to fall it doesn't matter how much cash they have on the balance sheet. Things could get worse," said GMP Securities analyst Deepak Kaushal.</div> <div> <br /></div> <div> The Canadian smartphone maker, once the leader in wireless email, announced the change in focus on Friday afternoon when it also said it will report a quarterly loss of close to $1 billion and slash more than a third of its workforce.</div> <div> <br /></div> <div> BRING YOUR OWN DEVICE</div> <div> <br /></div> <div> In response to queries about its future sales strategy BlackBerry said on Sunday it would provide more detail when it announces quarterly earnings on September 27.</div> <div> <br /></div> <div> On Friday, Chief Executive Thorsten Heins said the strategic shift to focus on so-called enterprise customers would play to the company's strengths in security and reliability.</div> <div> <br /></div> <div> "Security matters and enterprises know the gold standard in enterprise mobility is BlackBerry," he said in a statement.</div> <div> <br /></div> <div> Blackberry still has a substantial subscriber base - 72 million users globally at the end of June, though that did decline from 76 million three months earlier.</div> </div> <div> <br /></div> <div> <div> BlackBerry bet heavily that its Z10 touch-screen smartphone - the first powered by its new BlackBerry 10 operating system - would help it recoup some of the luster it enjoyed when users of these devices were mostly lawyers, bankers and politicians.</div> <div> <br /></div> <div> The bet has not paid off. GMP's Kaushal estimates as many as 3 million of the latest BlackBerry 10 phones are gathering dust with distributors who have been unable to sell them. For the second quarter, the company said it expects to have sold about 3.7 million BlackBerry smartphones to end users.</div> <div> <br /></div> <div> "I don't understood why they thought they ought to be pursuing the consumer at all, given the fact that Apple and Samsung really had the strength in that area," said Ross Healy, a portfolio manager with MacNicol & Associates, whose clients own BlackBerry shares.</div> <div> <br /></div> <div> A shift back to corporate customers is no clear fix. Many big organizations are already handling rival devices on their internal networks and employees are increasingly allowed to choose their preferred device, blurring the boundary between business and consumer markets.</div> <div> <br /></div> <div> For example, Credit Suisse is not supporting the Blackberry 10 and is helping employees globally to switch to iPhone and Android-run devices.</div> <div> <br /></div> <div> "We don't support BlackBerry 10 because of the added cost to our servers," said Credit Suisse U.S.-based spokeswoman Marcy Frank. The bank still supported older BlackBerry devices because there were plenty of staff who continued to use them, she said, but added: "We're driving people toward bring your own device (BYOD) ... we encourage people to give up their BlackBerry."</div> <div> <br /></div> <div> The head of technology procurement at a major North American bank, who declined to be named because he is not authorized to speak to media, said that while email and security are features in BlackBerry's favor, employees were increasingly turning to Apple and Android.</div> </div> <div> <br /></div> <div> <br /></div> <div> <div> "We will purchase a limited number of BB10 but our inventory of BlackBerry devices will definitely and drastically reduce as we implement a broader BYOD implementation over the next 18 months," he said.</div> <div> <br /></div> <div> BlackBerry was losing support at companies even before Friday's warning, said Phillip Redman, vice president of mobile solutions and strategy for Citrix Systems Inc, which provides software that helps companies manage mobile devices.</div> <div> <br /></div> <div> He said he had met with technology staff at 60 companies in various industries and none had a strategy of adding more BlackBerrys to their mobile device fleets. Redman's own company has limited capacity to handle Blackberry devices.</div> <div> <br /></div> <div> "The writing is on the wall," he said.</div> <div> <br /></div> <div> CARRIER JITTERS</div> <div> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG1-HdZRRK_BHi5VO8mTukfhOY9kwGtCcZ-ju70cfDwtotROpqxk4fVL5Wn_vJv9U0iwJfvABt_kFiZmlXq53ZbDWnqTLG-7dmQuy-LxHeqJgxBdJ9UDG-sozN2Mz4BY3b2-yzLxrPVfE/s1600/blackberry_reuters_1.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="206" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG1-HdZRRK_BHi5VO8mTukfhOY9kwGtCcZ-ju70cfDwtotROpqxk4fVL5Wn_vJv9U0iwJfvABt_kFiZmlXq53ZbDWnqTLG-7dmQuy-LxHeqJgxBdJ9UDG-sozN2Mz4BY3b2-yzLxrPVfE/s320/blackberry_reuters_1.jpg" width="320" /></a></div> <div> BlackBerry's shift away from consumers will also change the dynamic with network operators, who have already been burned by the poor showing of the Z10 and a string of previously delayed product launches.</div> <div> <br /></div> <div> The company on Friday wrote off almost $1 billion, mostly on a ballooning stockpile of Z10s it must discount sharply, even as it launched a fresh flagship device - the larger-screen Z30.</div> <div> <br /></div> <div> Poor sales of the Z10 made it difficult to get carriers to commit to the Z30, according to a source at BlackBerry, who declined to be named because of the sensitivity of the situation.</div> <div> <br /></div> <div> "Many carriers will now pull much if not all of the BlackBerrys from the shelves because shelf space is valuable and coveted and there are many other handset vendors who would eagerly invest a lot to displace BlackBerry," said a former senior BlackBerry executive who used to negotiate directly with carriers.</div> <div> <br /></div> <div> A spokesman for U.S. operator Sprint Corp said questions about any change in how BlackBerry devices are sold should be directed towards the company. A Verizon Wireless spokeswoman also declined to comment specifically on BlackBerry but said it would support its customers.</div> <div> <br /></div> <div> Highlighting the problems that have come to define BlackBerry in recent years, the company suspended the launch of its popular BlackBerry Messenger instant chat application for iPhones and Android devices scheduled for this weekend.</div> <div> <br /></div> <div> THE NEXT NORTEL?</div> <div> <br /></div> <div> Many industry analysts are now drawing parallels between BlackBerry and Nortel Networks Corp, the now-defunct Canadian telecom equipment giant.</div> <div> <br /></div> <div> Both companies, at their peaks, were the largest publicly listed names on the Toronto Stock Exchange. But as Nortel's revenue collapsed, it dumped employees in repeated restructurings and was eventually broken up and sold in parts.</div> <div> <br /></div> <div> BlackBerry has already hired advisors to look at finding a buyer for all or some of the company.</div> <div> <br /></div> <div> Given the dismal picture, Morningstar analyst Brian Colello said BlackBerry is likely to quickly attempt to go private or sell off some, or all, of its business units.</div> <div> <br /></div> <div> But he said he was no longer confident that a private equity buyer, who would shield management from the scrutiny of being a listed company, could turn the company around.</div> <div> <br /></div> <div> "We see no hope for BlackBerry at this point," Colello stressed in a note to clients following the warning on Friday. He said, in his view, BlackBerry was in "a death spiral."</div> </div> </div>

BlackBerry move away from consumers unlikely to stem decline BlackBerry Ltd's plan to retreat from the consumer market in favor...

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U.S. hiring data expected to show modest progress

<div dir="ltr" style="text-align: left;" trbidi="on"> <table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody> <tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghuJRxzBxiwRvjzmN305O3yZgb5-ZTIYNx4FTbbpkQC91_DHMkNMQOMIplG5M_fjPbwQPi7uodpr6fsdF9EIO1nRxTL9bhsl9uMX_qpX9dj7yY1KHK2QNltz4ic1ESoe2W1fBJBAi5IXo/s1600/news.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="U.S. hiring data expected to show modest progress" border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghuJRxzBxiwRvjzmN305O3yZgb5-ZTIYNx4FTbbpkQC91_DHMkNMQOMIplG5M_fjPbwQPi7uodpr6fsdF9EIO1nRxTL9bhsl9uMX_qpX9dj7yY1KHK2QNltz4ic1ESoe2W1fBJBAi5IXo/s400/news.jpg" title="U.S. hiring data expected to show modest progress" width="400" /></a></td></tr> <tr><td class="tr-caption" style="text-align: center;">U.S. hiring data expected to show modest progress</td></tr> </tbody></table> <h2 style="text-align: left;"> <a href="http://www.newsupdate360.com/2013/08/us-hiring-data-expected-to-show-modest.html">U.S. hiring data expected to show modest progress</a></h2> <br />  U.S. employers likely hired enough workers in July to push the jobless rate to a near four-year low, which could bolster expectations the Federal Reserve will start drawing down its<br /> huge economic stimulus program later this year.<br /> <br /> The number of jobs outside the farming sector could increase by 184,000, with the unemployment rate ticking down a tenth of a point to 7.5 percent, according to a Reuters poll of economists.<br /> <br /> While the U.S. economy has appeared stuck in low gear since exiting the 2007-09 recession, the job market has inched toward recovery at a steady pace.<br /> <br /> July's expected growth in payrolls, while a slight downshift from the pace in June, would essentially match the average monthly gain clocked since 2011.<br /> <br /> "The U.S. economy is grinding along for the better, but it's going to be a long and slow grind," said Tanweer Akram, an economist at ING U.S. Investment Management in Atlanta.<br /> <br /> The Labor Department will release its monthly employment report at 8:30 a.m. EDT on Friday. The expected drop in the jobless rate would take it back to April's level, which was the lowest since December 2008.<br /> <br /> The data could reinforce the view that the U.S. recovery has advanced enough to get by with less help from the Fed, which currently buys $85 billion a month in bonds to keep borrowing costs low.<br /> <br /> The stimulus program has lowered interest rates, spurring growth in the country's beleaguered housing market and boosting car sales. Fed Chairman Ben Bernanke said last month the U.S. central bank would likely reduce the level of monthly purchases by the end of the year, and end them by mid-2014.<br /> <br /> The Fed's policymaking committee wrapped up a two-day meeting on Wednesday without any change to the program. The panel's statement, however, referenced new factors that could be seen as risks to growth: a recent rise in mortgage rates and persistently low inflation. Central bank policymakers next meet in September.<br /> <br /> STRUCTURAL CONCERNS<br /> <br /> Many economists believe another month of trend-rate hiring would lead the Fed to trim its bond buying in September.<br /> <br /> But Friday's jobs report could also entertain darker views on the economy.<br /> <br /> For one, analysts wonder if the pace of job creation can be sustained given slower-than-expected economic growth.<br /> <br /> Gross domestic product, a measure of the nation's economic output, grew at a mere 1.4 percent annual rate in the first half of the year, down from 2.5 percent in the same period of 2012.</div>

U.S. hiring data expected to show modest progress U.S. hiring data expected to show modest progress  U.S. employers likely hired eno...

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Asian shares buoyed by U.S. data, accommodative central banks

<div dir="ltr" style="text-align: left;" trbidi="on"> <table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody> <tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIzTaFTTanwJ5w7fafEFH-xl5-cfjre7XYRFKChCD7N_QfPeLMPeStIvSkvuMIN9U7YJKCiJ6Eys660RmBkwsFeLPVqgAGAWt5tjuX8-Z-RgFMk_6POcqJ140lM04OXMao1UPgIgJSoiI/s1600/market.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Asian shares buoyed by U.S. data, accommodative central banks" border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIzTaFTTanwJ5w7fafEFH-xl5-cfjre7XYRFKChCD7N_QfPeLMPeStIvSkvuMIN9U7YJKCiJ6Eys660RmBkwsFeLPVqgAGAWt5tjuX8-Z-RgFMk_6POcqJ140lM04OXMao1UPgIgJSoiI/s400/market.jpg" title="Asian shares buoyed by U.S. data, accommodative central banks" width="400" /></a></td></tr> <tr><td class="tr-caption" style="text-align: center;">Asian shares buoyed by U.S. data, accommodative central banks</td></tr> </tbody></table> <h2 style="text-align: left;"> <a href="http://www.newsupdate360.com/2013/08/asian-shares-buoyed-by-u.html">Asian shares buoyed by U.S. data, accommodative central banks</a></h2> <div> Asian shares advanced on Friday after brisk U.S. factory activity data and a commitment to easy monetary policy by European central banks and the Federal Reserve buoyed Wall Street to record highs overnight.</div> Stirred by optimism on the U.S. economic recovery, the yield on benchmark U.S. Treasuries edged closer to a two-year high and triggered a sharp rebound in the dollar from a six-week low hit against a basket of currencies on Wednesday.<br /> <br /> European shares look set to reach highs not seen for more than two months, with Germany's Dax (.GDAXI) seen rising as much as 0.5 percent, the France's CAC 40 (.FCHI) 0.3 percent, and Britain's FTSE (.FTSE) 0.2 percent.<br /> <br /> U.S. stock futures pointed to further gains later in the day.<br /> <br /> A strong reading in U.S. payrolls data, due at 1230 GMT (8.30 a.m. ET), would likely to stoke momentum in markets, possibly pushing the 10-year U.S. yield to new two-year highs.<br /> "Essentially, the market is waiting for a global economic recovery in the latter half of this year," said Tohru Yamamoto, chief fixed income strategist at Daiwa Securities.<br /> <br /> "We had a decent Chinese manufacturing data yesterday. Periphery European countries are also improving recently. And central banks have confirmed that easy policy will be in place. These are the reasons why a rise in bond yields are not destabilizing share prices today, unlike in June," he added.<br /> <br /> The European Central Bank and the Bank of England both ended policy meetings by leaving interest rates at record lows on Thursday, a day after the Fed said the U.S. economy still needed its support and avoided any mention of a change to its stimulus measures.<br /> <br /> Japan's Nikkei share average (NIK:^9452) rose 2.7 percent, while ex-Japan Asian shares gained 0.3 percent <.miapj0000pus>.<br /> <br /> Shares in South Korea (.KS11) and Hong Kong (.HSI) hit two-month peaks while Australian stocks (.AXJO) rose to a 2 1/2-month highs.<br /> <br /> On Thursday, the Dow Jones index (.DJI) rose 0.8 percent and S&P 500 (.SPX) gained 1.3 percent to end above 1,700 for the first time ever.<br /> <br /> The dollar index held onto Thursday's gains of 1.1 percent, its biggest one-day rally in a month, to stand at 82.318 (.DXY), extending its rebound from six-week low of 81.407 hit on Wednesday.<br /> <br /> The broad rally in the dollar saw the euro ease to $1.3206, flat on the day but off Wednesday's six-week high of $1.3345, while the yen fell towards 100 per dollar, well off this week's high around 97.58.<br /> The Australian dollar hit a three-year low as the currency was still smarting from dovish comments by the Reserve Bank of Australia (RBA) on Tuesday.</div>

Asian shares buoyed by U.S. data, accommodative central banks Asian shares buoyed by U.S. data, accommodative central banks Asian sh...

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Motorola hoping for hit with new Moto X

<div dir="ltr" style="text-align: left;" trbidi="on"> <h2 style="text-align: left;"> </h2> <div class="separator" style="clear: both; text-align: center;"> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgK4ChCjNm0WfJNltHX5Z3r1cWRKBf97iYd50m3TY3l7NUe6Oa81HyajQ4lCOFVGTII1eLrqsmvF1Iwdb3LCB5sclSaYOVUj-FklqJpnunTQ5zvgfPzdNSMpbho9xqQIb8l6sNlGgTIrH8/s1600/Moto-X-concept.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Motorola hoping for hit with new Moto X" border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgK4ChCjNm0WfJNltHX5Z3r1cWRKBf97iYd50m3TY3l7NUe6Oa81HyajQ4lCOFVGTII1eLrqsmvF1Iwdb3LCB5sclSaYOVUj-FklqJpnunTQ5zvgfPzdNSMpbho9xqQIb8l6sNlGgTIrH8/s400/Moto-X-concept.jpg" title="Motorola hoping for hit with new Moto X" width="400" /></a></div> <h2> <a href="http://www.newsupdate360.com/2013/08/motorola-hoping-for-hit-with-new-moto-x.html">Motorola hoping for hit with new Moto X</a></h2> <div> <br /></div> <div> <div> Motorola Mobility unveiled Thursday its much-anticipated Moto X smartphone, marking the Libertyville-based company’s first flagship product launch since its acquisition by Google last year.</div> <div> <br /></div> <div> The new device, introduced at a press event in New York, comes with a 4.7-inch display and a feature where a simple twist of the wrist activates the camera. It’s also accompanied by massive expectations for a company that’s weathered many painful restructurings and predictions of its demise. While the Libertyville-based company introduced last week three new smartphones for Verizon Wireless’ Droid line, the Moto X represents the “culmination of this new year for Motorola as a subsidiary of Google,” Motorola Chief Executive Dennis Woodside told the Tribune in an interview.</div> <div> <br /></div> <div> "It's the first device that was built really from scratch -- literally from a whiteboard -- post Google’s acquisition of Motorola," Woodside said. "We really spent the last year retooling the company to become much more focused…really getting Motorola back to its roots of innovation."</div> <div> One of the defining characteristics of Moto X is its ability to be customized. Some of this is aesthetic, as consumers can choose from a palette of colors for the phone’s back plate, front plate and other hardware parts. The company said more than 2,000 combinations are possible. Woodside said consumers like choices and pointed to fashion, such as the NikeiD program that allows people to design their own shoes, as an example.</div> <div> <br /></div> <div> The customization is woven throughout the Moto X’s hardware and software. The device responds to voice commands without draining a lot of battery and is integrated with Google Now, a personal assistant feature that understands natural language. It can answer questions and provide recommendations. This technology is also present on the new Droid phones released for Verizon last week.</div> <div> <br /></div> <div> "Google invented the self-driving car," Woodside said. 'You can think of the Moto X as a self-driving phone."</div> <div> <br /></div> <div> The industry will be closely watching the Moto X as a gauge of whether Google has successfully reshaped Motorola into a maker of cutting-edge mobile technology. The company has substantial ground to reclaim before it even makes a dent in worldwide smartphone shipments, which are dominated by Apple and Samsung. According to data tracker IDC, Motorola’s second-quarter market share is 1 percent or less. During the same period, IDC measured Samsung’s market share at 30.4 percent and Apple at 13.1 percent.</div> <div> <br /></div> </div> </div>

Motorola hoping for hit with new Moto X Motorola Mobility unveiled Thursday its much-anticipated Moto X smartphone, marking the L...

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CIT cuts off credit to some J.C. Penney vendors: source

<div dir="ltr" style="text-align: left;" trbidi="on"> <div class="separator" style="clear: both; text-align: center;"> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbCQt5qqhedqjTWa7UFPpMOfn07bYf0uV2cLQPA0HgC1Oi7wjCSzDW_jb-fphfYN88UhM-nF2hcCCQC5fieBC0RtLktlUZDIwtkJwLa9Jn4YyFoRn1q8bmMG7kvAqz7ln6YF9sAadHalQ/s1600/jpeny.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="CIT cuts off credit to some J.C. Penney vendors: source" border="0" height="258" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbCQt5qqhedqjTWa7UFPpMOfn07bYf0uV2cLQPA0HgC1Oi7wjCSzDW_jb-fphfYN88UhM-nF2hcCCQC5fieBC0RtLktlUZDIwtkJwLa9Jn4YyFoRn1q8bmMG7kvAqz7ln6YF9sAadHalQ/s400/jpeny.jpg" title="CIT cuts off credit to some J.C. Penney vendors: source" width="400" /></a></div> <h2 style="text-align: left;"> <a href="http://www.newsupdate360.com/2013/07/cit-cuts-off-credit-to-some-jc-penney.html">CIT cuts off credit to some J.C. Penney vendors: source</a></h2> <div> <br /></div> <div> <div> Commercial lender CIT Group (CIT) abruptly stopped funding some future shipments to J.C. Penney Co (JCP), a source familiar with the situation said Wednesday, in a move that could disrupt the retailer's holiday shipments and hamper sales</div> <div> .</div> <div> CIT met with Penney officials on Tuesday and is in talks with the department store chain to resolve the issue, the source said.</div> <div> <br /></div> <div> Finance companies such as CIT, known in the industry as factors, provide short-term loans to suppliers while they are waiting to be paid by those receiving their goods or services.</div> <div> The news sent Penney shares down more than 10 percent on Wednesday and created another setback for Chief Executive Mike Ullman, who has been trying to rebuild the company since returning in April.</div> <div> His predecessor, Ron Johnson, had tried to remake Penney into a more fashionable department store, but shoppers rejected the concept and sales fell 25 percent last fiscal year.</div> <div> <br /></div> <div> Ullman, who was brought back to succeed Johnson, has largely restored Penney's original strategy focused on deep discounts and coupons.</div> <div> <br /></div> <div> Penney recently lined up a five-year $2.25 billion financing package to shore up its liquidity, but analysts had said sales growth was likely to return only at the end of the year.</div> <div> Penney did not respond to several requests for comment about Wednesday's news, and CIT declined to comment.</div> <div> <br /></div> <div> CIT, which months ago added a 1 percent surcharge on invoices to Penney vendors, may want detailed financial data ahead of the department store chain's quarterly earnings on August 20, said the industry source, who was not authorized to speak publicly about the matter and declined to be named.</div> <div> Wall Street analysts expect Penney to report that same-store sales declined 6.7 percent in the second quarter, while the larger sector is expected to report a 3.1 percent average increase, according to Thomson Reuters.</div> <div> <br /></div> <div> CIT's move could disrupt holiday deliveries if Penney suppliers end up sending smaller shipments, or less merchandise, said Mark Cohen, former chief executive of Sears Canada who is a professor of marketing at Columbia University in New York.</div> <div> <br /></div> <div> Penney will inevitably take a hit at a time its gross profit margin is already under enormous pressure since it reverted to its original pricing strategy in April, Cohen said.</div> <div> <br /></div> <div> "They may have to pay substantially more for the merchandise one way or another," Cohen said.</div> <div> CIT, run by Wall Street executive John Thain, temporarily halted loans to Sears Holdings Corp (SHLD) suppliers in January 2012 after the company posted dismal holiday results. It resumed funding a few months later after Sears provided assurances about its finances.</div> <div> <br /></div> <div> The decline in Penney's stock on Wednesday is the latest blow to activist investor William Ackman, whose Pershing Square Capital Management owns an 18 percent stake in Penney.</div> <div> <br /></div> <div> Ackman's fund took another hit on Wednesday when Herbalife Ltd (HLF) shares rose 9.1 percent. Ackman has made a $1 billion bet that the nutritional supplements company is a pyramid scheme and that its shares would fall.</div> <div> <br /></div> <div> The investor unveiled on Wednesday a $2.2 billion stake, his biggest bet ever, on Air Products & Chemicals Inc (APD).</div> </div> </div>

CIT cuts off credit to some J.C. Penney vendors: source Commercial lender CIT Group (CIT) abruptly stopped funding some future ship...

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More investors hold bullish U.S. bond bets before FOMC: survey

<div dir="ltr" style="text-align: left;" trbidi="on"> <h1 class="headline" style="background-color: white; font-family: arial, helvetica, clean, sans-serif; font-size: 26px; line-height: 1.21em; margin: 0px 0px 10px; padding: 0px;"> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_QluxoGsH467u0ljAUa8UlUq24XKyFb2eFnnDi8G3nRoyJv-XKhFbm2CJriQx0aT0jTh7scnCv8U8SD8hMjXOwO7i4QtIqB299LxqYhGT2a2az38ueA4nPM7jJ5iS4ryHZ7a8eC8i9YI/s1600/More+investors+hold+bullish+U.S.+bond.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="More investors hold bullish U.S. bond bets before FOMC: survey images" border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_QluxoGsH467u0ljAUa8UlUq24XKyFb2eFnnDi8G3nRoyJv-XKhFbm2CJriQx0aT0jTh7scnCv8U8SD8hMjXOwO7i4QtIqB299LxqYhGT2a2az38ueA4nPM7jJ5iS4ryHZ7a8eC8i9YI/s400/More+investors+hold+bullish+U.S.+bond.jpg" title="More investors hold bullish U.S. bond bets before FOMC: survey pictue" width="400" /></a>More investors hold bullish U.S. bond bets before FOMC: survey</h1> <h3 style="text-align: left;"> </h3> <div> NEW YORK (Reuters) - More investors raised their positions in longer-dated U.S. Treasuries holdings in the latest week in advance of the Federal Reserve's two-day policy meeting, according to a survey released on Tuesday.<br /> A total of 19 percent of its Treasuries clients said on Monday they were "long" in their duration on U.S. government debt, or owning more longer-dated Treasuries than their benchmarks, up from 11 percent a week earlier, the latest J.P. Morgan Securities survey showed.<br /> This was the highest share of its clients who said they were long in their duration in about five months.<br /> By holding more longer-dated Treasuries, investors add duration or interest rate risk to their portfolios in anticipation of a market rally when longer-dated bonds generate higher returns than shorter-dated debt.<br /> Treasuries prices have slid and their yields have jumped in recent weeks due to worries the U.S. central bank might reduce its $85 billion monthly purchases of Treasuries and mortgage-backed securities later this year, as the U.S. economy has shown tentative signs of sustainable growth.<br /> The rebound in Treasuries longs likely stemmed from bargain-minded investors who bought them after their longer-dated yields rose to 14-month highs last week.<br /> There has also been a persistent view the Fed will stick with its current pace of bond purchases as long as unemployment remains high and inflation runs below its 2 percent target.<br /> Benchmark 10-year Treasury notes traded 7/32 lower in price early Tuesday with a yield of 2.203 percent, up 2.5 basis points from late on Monday. The 10-year yield reached a 14-month high of 2.293 percent a week ago. (US/)<br /> The Federal Open Market Committee, the central bank's policy-setting body, will convene later Tuesday. It is expected to release a policy statement and economic forecasts at 2 p.m. on Wednesday, followed by a conference with Fed Chairman Ben Bernanke. (FED/DIARY)<br /> The bond market has stabilized in recent days, although intraday volatility remained high. This suggested there are fewer investors who are "short" in their Treasuries duration, or own fewer longer-dated Treasuries than their benchmarks.<br /> In J.P. Morgan's latest survey, a total of 15 percent of its Treasuries clients said they were "short," down from 28 percent a week earlier.<br /> The share of "longs" exceeded "shorts" by 4 percentage points in the latest week, compared with a week ago when shorts exceeded longs by 17 points, J.P. Morgan said.<br /> The share of investors who said they held Treasuries equal to their benchmarks rose to 66 percent, from 61 a week earlier.<br /> Among active clients, who are viewed as making speculative bets in Treasuries, 77 percent said their longer-dated Treasuries holdings matched their benchmarks, up from 61 percent the prior week.<br /> The survey showed 15 percent of active "longs," up from 8 percent the prior week.<br /> Only 8 percent of active clients said they were short in duration versus their benchmarks, down sharply from 31 percent a week earlier.<br /> J.P. Morgan surveys 40 to 60 of its Treasuries clients weekly, of which 60 percent are fund managers, 25 percent are speculative accounts and 15 percent are central banks and sovereign wealth funds.</div> </div>

More investors hold bullish U.S. bond bets before FOMC: survey NEW YORK (Reuters) - More investors raised their positions in longer-da...

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