Daily Market Commentary for October 10, 2011
Per the Energy Department, the embattled director Jonathan Silver, head of the U.S. Department of Energy Loan Programs Office - the controversial loan program that approved a $535 million taxpayer guarantee to bankrupt solar firm Solyndra is stepping down.
(read more at Millennium-Traders.Com)http://www.millennium-traders.com/news/newscommentary.aspx
Numerous documents show administration officials were concerned about the companyâ€™s finances. The committee this week also released more emails that showed the Energy Department was considering giving Solyndra a second $469 million loan in the summer of 2010 despite the company's deteriorating financial situation. "So I mean there's always going to be a debate about whether this particular approach to this particular technology is going to be successful or not," Obama said. "And all I can say is that the Department of Energy made these decisions based on their best judgment about what would make sense." Asked to respond on reports that the $38 billion loan guarantee program promised to save or create 65,000 jobs only produced 3,500; Obama said that historically, businesses that rely on new technologies are "going to take awhile before they get takeoff." "Keep in mind that clean energy companies are competing against traditional energy companies," he said and added that traditional energy is still cheaper, but running out and polluting the environment. "And we know that demand is going to keep on increasing, so that if we don't prepare now, if we don't invest now, if we don't get on top of technologies now, we're going to be facing 20 years from now, China and India having a billion new drivers on the road, the trend lines in terms of oil prices, coal, et. cetera, going up, the impact on the planet increasing. And we're not just going to be able to start when all heck is breaking loose and say, 'Boy, we better find some new energy sources.'"
According to a monthly survey from mortgage market enterprise Fannie Mae, consumer expectations for U.S. home prices worsened significantly in September to register their weakest outlook in more than a year. Fannie Mae said respondents now expect home prices to decline 1.1% over the next year, a steeper drop than the 0.5% decrease predicted during the August survey and the biggest decline expected to date. Consumer views on the economy showed modest improvements, as 77% of respondents indicated they believe the U.S. economy is on the wrong track, a 1 percentage point decline from August. Regarding personal finances of respondents, 19% of those surveyed saw their personal financial situation deteriorating over the next year, down from 22% of respondents with that view in August. "The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and continued low mortgage rates, coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market," Fannie Mae Chief Economist Doug Duncan said. Survey results are based on a monthly poll of approximately 1,000 adults and has a margin of error of plus or minus 3.1%.
The new iPhone 4S set a record for pre-orders last week more than 1 million units snatched up online in the first 24 hours. The iPhone 4, the units predecessor had a record of 600,000 pre-orders. "We are blown away with the incredible customer response to iPhone 4S," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing. "The first day pre-orders for iPhone 4S have been the most for any new product that Apple has ever launched and we are thrilled that customers love iPhone 4S as much as we do."
European Union leaders have delayed the European Council summit by a week with new schedule for October 23, per European Council President Herman Van Rompuy. "This timing will allow to finalize our comprehensive strategy on the euro-area sovereign debt crisis covering a number of interrelated issues," Van Rompuy said in a statement. "Further elements are needed to address the situation in Greece, the bank recapitalization and the enhanced efficiency of stabilization tools (EFSF)," Van Rompuy said in a statement. "These elements are closely related to the outcome of the troika mission to Greece on the state of implementation of the program and to the Commission's plans for a framework for the bank recapitalizations, taking into account the work of the European Banking Authority."
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