European Union competition regulators launched two anti-trust investigations against IBM, suspecting it of abusing its dominant position in the mainframe computer market. One investigation followed complaints by emulator software vendors T3 and TurboHercules against IBM's practices, and focuses on the US computer group's alleged tying of mainframe hardware to its mainframe operating system.
The second probe, opened on the European Commission's own initiative, concerns alleged discriminatory behaviour towards competing suppliers of mainframe maintenance services.
"The Commission has concerns that IBM may have engaged in anti-competitive practices with a view to foreclosing the market for maintenance services ... in particular by restricting or delaying access to spare parts for which IBM is the only source," said the Commission on Monday. The Commission enforces EU competition rules and can fine companies that break them. IBM rejected the allegations but promised to cooperate fully with the investigation.
"IBM is fully entitled to enforce its intellectual property rights and protect the investments we have made in our technologies," the company said in a statement. It said Microsoft and its other big competitors had inspired the commission's action. "The accusations made against IBM by TurboHercules and T3 are being driven by some of IBM's largest competitors — led by Microsoft," it said, adding that in this way the software supplier wanted to cement the dominance of its Wintel servers.
Monday, July 26, 2010
Friday, July 23, 2010
Superior Gold Group - Gold set to rise again as fundamentals reassert themselves
The price of gold may be set to stage another rise, Bloomberg News and various analysts report, now that the yellow metal has recovered from an eight-week low. Currently, physical gold trades at a five to six percent discount to the record $1,266.50 per troy ounce level that it set back in June.
"There’s been an upturn in physical buying, in Asia particularly. People see it is a cheap price. There’s been a bit of an improvement in risk appetite and gold can benefit on the back of portfolio flows," Dan Smith of Standard Chartered in London told Bloomberg News.
Long-time traders like Jim Rogers are advocating a commodities-heavy strategy in the coming years, as rapidly developing nations like China and India consume more and more raw materials to fuel their economies. China recently surpassed the U.S. as the world's greatest consumer of energy - although not yet of oil - and the relatively low per capital income and consumption of the Chinese people means that those figures could continue booming.
China has also been a steady investor in gold, with both the private and the public sector picking up stores of physical gold when the price dips temporarily. In the first half of 2010, the Shanghai Gold Exchange saw the equivalent of 3,174.5 metric tons of gold traded, a 59 percent jump from the same period in 2009.
It's not just private investors, either - the People's Bank of China has accumulated over 1,000 tons of gold, making it one of the world's biggest holders. The Chinese government is nervous about the possible effects of inflation on its massive dollar reserves, but it can't dump too many dollars at once without spooking the currency markets.
A big test for the global economy - and for the outlook on dealer gold - will come on Friday when European regulators announce the results of the "stress tests" they have been conducting on Europe's biggest banks.
One of the key questions is how many banks would be affected by a major sovereign default - such as a Greek or Portuguese bankruptcy - and how badly their holdings would fare.
If the banks look too weak, they'll be told to raise more capital.
Many, however, are skeptical and fear that the tests are not rigorous enough. In that case, become overconfident. Alternatively, investors could lose their remaining confidence in the eurozone and jump ship, which would precipitate exactly the crisis regulators hope to avoid.
"There’s been an upturn in physical buying, in Asia particularly. People see it is a cheap price. There’s been a bit of an improvement in risk appetite and gold can benefit on the back of portfolio flows," Dan Smith of Standard Chartered in London told Bloomberg News.
Long-time traders like Jim Rogers are advocating a commodities-heavy strategy in the coming years, as rapidly developing nations like China and India consume more and more raw materials to fuel their economies. China recently surpassed the U.S. as the world's greatest consumer of energy - although not yet of oil - and the relatively low per capital income and consumption of the Chinese people means that those figures could continue booming.
China has also been a steady investor in gold, with both the private and the public sector picking up stores of physical gold when the price dips temporarily. In the first half of 2010, the Shanghai Gold Exchange saw the equivalent of 3,174.5 metric tons of gold traded, a 59 percent jump from the same period in 2009.
It's not just private investors, either - the People's Bank of China has accumulated over 1,000 tons of gold, making it one of the world's biggest holders. The Chinese government is nervous about the possible effects of inflation on its massive dollar reserves, but it can't dump too many dollars at once without spooking the currency markets.
A big test for the global economy - and for the outlook on dealer gold - will come on Friday when European regulators announce the results of the "stress tests" they have been conducting on Europe's biggest banks.
One of the key questions is how many banks would be affected by a major sovereign default - such as a Greek or Portuguese bankruptcy - and how badly their holdings would fare.
If the banks look too weak, they'll be told to raise more capital.
Many, however, are skeptical and fear that the tests are not rigorous enough. In that case, become overconfident. Alternatively, investors could lose their remaining confidence in the eurozone and jump ship, which would precipitate exactly the crisis regulators hope to avoid.
Tuesday, July 20, 2010
Superior Gold Group - Gold climbs as housing starts falter
The price of gold rose on Tuesday morning as housing construction plunged to its lowest level since October. Figures from the Department of Commerce showed that the seasonally adjusted annual rate of new building fell 5 percent in June, to 549,000.
The biggest drops, the report found, were in the construction of condominiums and apartments. Single-family homes, meanwhile, were down only .7 percent.
Along with weak revenues from IBM and Goldman Sachs, the news pushed equities markets downwards. Commodities like gold and silver gained, however, as traders searched for a haven. The price of gold rose .25 percent to $1,184.90 per troy ounce.
Fear of a double-dip recession, particularly in the housing market, is growing. An $8,000 tax credit for new buyers, which was extended through this April, helped keep realtors and builders afloat for a while, but now efforts to re-inflate the housing bubble seem to be leaking.
This increases the chance that the government will try to fight back by pumping more capital and liquidity into the economy. Even if there are short-term deflationary pressures, in the longer term, inflation will become a serious concern.
Investors should look at hedging their portfolios with holdings of dealer gold and silver, which will resist inflationary tendencies on the part of central banks.
The biggest drops, the report found, were in the construction of condominiums and apartments. Single-family homes, meanwhile, were down only .7 percent.
Along with weak revenues from IBM and Goldman Sachs, the news pushed equities markets downwards. Commodities like gold and silver gained, however, as traders searched for a haven. The price of gold rose .25 percent to $1,184.90 per troy ounce.
Fear of a double-dip recession, particularly in the housing market, is growing. An $8,000 tax credit for new buyers, which was extended through this April, helped keep realtors and builders afloat for a while, but now efforts to re-inflate the housing bubble seem to be leaking.
This increases the chance that the government will try to fight back by pumping more capital and liquidity into the economy. Even if there are short-term deflationary pressures, in the longer term, inflation will become a serious concern.
Investors should look at hedging their portfolios with holdings of dealer gold and silver, which will resist inflationary tendencies on the part of central banks.
Monday, July 19, 2010
Superior Gold Group - Moody's cuts Ireland debt rating
In another blow to the euro-zone, Moody's cut the sovereign debt rating of Ireland from Aa1 to Aa2, almost exactly one year after it initially cut the island nation's rating from the top grade, Aaa.
The Irish National Treasury Management Agency, which is is responsible for the nation's sovereign debt, put a brave face on things. They pointed out that Moody's now rates the country's bonds as "stable" rather "than negative, possibly indicating that Ireland will hold the Aa2 rating for a while.
Tuesday will mark a major test for the country, as Ireland will attempt an auction of as much as 1.5 billion euros in six-year and 10-year notes.
Greece, Ireland, Spain and Portugal have all seen downgrades in recent months, as increased nervousness about the countries' financial stability drive up borrowing costs. So far, however, only Greece is classified as "junk" grade.
In the long run, these assessments of weakness in the bond market will be good news for investors in physical gold and silver, assets which tend to do well in times of economic distress. Despite some recent weakness in the precious metals sector, investors are beginning to realize that in the long run, shaky debt and the dangers of inflation threaten to undermine their hard-won gains.
The Irish National Treasury Management Agency, which is is responsible for the nation's sovereign debt, put a brave face on things. They pointed out that Moody's now rates the country's bonds as "stable" rather "than negative, possibly indicating that Ireland will hold the Aa2 rating for a while.
Tuesday will mark a major test for the country, as Ireland will attempt an auction of as much as 1.5 billion euros in six-year and 10-year notes.
Greece, Ireland, Spain and Portugal have all seen downgrades in recent months, as increased nervousness about the countries' financial stability drive up borrowing costs. So far, however, only Greece is classified as "junk" grade.
In the long run, these assessments of weakness in the bond market will be good news for investors in physical gold and silver, assets which tend to do well in times of economic distress. Despite some recent weakness in the precious metals sector, investors are beginning to realize that in the long run, shaky debt and the dangers of inflation threaten to undermine their hard-won gains.
Friday, July 16, 2010
Superior Gold Group - Recovery faltering as stock indexes slump
Impressive corporate profits weren't enough to jolt the bulls into action this week, as stock indexes described a perfect parabola from Monday to Friday. Despite gains of 2 to 3 percent at midweek, all three major indexes had collapsed back to their starting points by noon on Friday.
That's bad news for those hoping that surging stock values alone could drive the economy out of recession. It's corporate earnings season, and the news has generally been mixed. JPMorgan Chase, chip manufacturer Intel and aluminum producer Alcoa all posted better-than-expected results, but other companies didn't fare as well.
General Electric, Citigroup and Bank of America all missed estimates, while Goldman Sachs settled the suit brought against it by the SEC for $550 million.
That just boosted the investment bank's shares, though: As it turns out, the fine is equal to just 14 days of Goldman's first-quarter earnings.
The market signals point to sustained weakness in stocks, which is probably good news for hard assets like physical gold. The price of dealer gold has jumped almost 8.5 percent since the beginning of the year, and at one point it was up almost 15 percent.
By contrast, the S&P 500 never got past 10 percent gains in 2010, and it's currently down almost 4 percent.
That's bad news for those hoping that surging stock values alone could drive the economy out of recession. It's corporate earnings season, and the news has generally been mixed. JPMorgan Chase, chip manufacturer Intel and aluminum producer Alcoa all posted better-than-expected results, but other companies didn't fare as well.
General Electric, Citigroup and Bank of America all missed estimates, while Goldman Sachs settled the suit brought against it by the SEC for $550 million.
That just boosted the investment bank's shares, though: As it turns out, the fine is equal to just 14 days of Goldman's first-quarter earnings.
The market signals point to sustained weakness in stocks, which is probably good news for hard assets like physical gold. The price of dealer gold has jumped almost 8.5 percent since the beginning of the year, and at one point it was up almost 15 percent.
By contrast, the S&P 500 never got past 10 percent gains in 2010, and it's currently down almost 4 percent.
Monday, July 12, 2010
Superior Gold Group - BusinessWeek Identifies "Modern Day Gold Rush"
Bloomberg/BusinessWeek has written a long piece on the economic effects of the gold's rising price, identifying some of the unique opportunities that arise as gold hovers around $1,200 per ounce. Savvy entrepreneurs, inventors and investors have come up with new ways to make money off of the rising price of one of the world's most precious commodities.
One path to golden riches, the magazine found, was the most old-fashioned - prospecting for gold in streams and other potentially gold-rich locations. The Gold Prospectors Association of American, based in Temecula, California, says that its membership jumed 93 percent in 2008, with more than 62,000 members around the country.
Others have taken a more modern, entrepreneurial approach, as is the case with the magazine's profile of Arizona Gold Adventures founder Terry Soloman. The idea behind his company is simple - gold prospecting tourism, taking visitors out around Congress, Arizona to do a some prospecting for $350 daily fee.
The magazine also identified some more esoteric ways of playing the rise in gold, such as Hon Corporation's gold "vending machines." It has installed 20 machines in retail establishments around Korea, selling card-sized wafers of gold that weigh between .5 and 10 grams. It's trying to expand into the U.S. and Europe.
BusinessWeek also identified an interesting niche market that's benefited from increasing investment in gold - safe manufacturers. When buying physical gold, owning a safe and secure location that is easily accessible in case of emergency is an important consideration.
A high-end safe, proof against all but the most dedicated burglars, as well as natural disasters like flood and fire, is necessary if investors want to store their physical gold holdings on their own property. Dean Safe of Arleta, California told the magazine that 2009 brought the best sales in the company's 35-year history.
Overall the magazine paints a picture of an intriguing "gold economy" springing up as the metal generates fresh opportunities. With some analysts predicting gold prices as high as $2,000 or even $5,000 per troy ounce in the next five years, many investors are choosing this moment to diversify their investment portfolios with precious metals.
Add in fears of inflation, or worse, hyperinflation, and the economic picture being painted makes a pretty good case for the yellow metal.
One path to golden riches, the magazine found, was the most old-fashioned - prospecting for gold in streams and other potentially gold-rich locations. The Gold Prospectors Association of American, based in Temecula, California, says that its membership jumed 93 percent in 2008, with more than 62,000 members around the country.
Others have taken a more modern, entrepreneurial approach, as is the case with the magazine's profile of Arizona Gold Adventures founder Terry Soloman. The idea behind his company is simple - gold prospecting tourism, taking visitors out around Congress, Arizona to do a some prospecting for $350 daily fee.
The magazine also identified some more esoteric ways of playing the rise in gold, such as Hon Corporation's gold "vending machines." It has installed 20 machines in retail establishments around Korea, selling card-sized wafers of gold that weigh between .5 and 10 grams. It's trying to expand into the U.S. and Europe.
BusinessWeek also identified an interesting niche market that's benefited from increasing investment in gold - safe manufacturers. When buying physical gold, owning a safe and secure location that is easily accessible in case of emergency is an important consideration.
A high-end safe, proof against all but the most dedicated burglars, as well as natural disasters like flood and fire, is necessary if investors want to store their physical gold holdings on their own property. Dean Safe of Arleta, California told the magazine that 2009 brought the best sales in the company's 35-year history.
Overall the magazine paints a picture of an intriguing "gold economy" springing up as the metal generates fresh opportunities. With some analysts predicting gold prices as high as $2,000 or even $5,000 per troy ounce in the next five years, many investors are choosing this moment to diversify their investment portfolios with precious metals.
Add in fears of inflation, or worse, hyperinflation, and the economic picture being painted makes a pretty good case for the yellow metal.
Saturday, July 10, 2010
Superior Gold Group - Sell bonds and buy metals, commodities
The chairman of Rogers Holdings said that metals like silver and gold, as well as agricultural commodities like rice, will be the best investments over the next few years.
Although he holds both gold and silver currently, Rogers says he prefers the white metal right now because it has been less bullish than gold lately, and represents a better bargain.
Regardless, he thinks that gold will eventually hit more than $2,000 per troy ounce, by some undisclosed date. He advocates buying physical gold over gold shares, citing its liquidity, portability and "real" value.
The hedge fund manager is pessimistic about the state of the global economy and told an investors conference in Kuala Lumpur on Wednesday that "Bonds are not a good place to invest in. You should own commodities because that’s your only refuge."
Rogers gained international renown after calling the beginning of the global surge in commodities prices that began in 1999. In 1998, he created the Rogers International Commodity Index, which is a dollar-based basket of 36 commodities across three major sectors: agriculture, energy and metals.
The RICI includes gold, silver, palladium, platinum, crude oil, natural gas, rice, coffee, cocoa wheat and sugar.
Although he holds both gold and silver currently, Rogers says he prefers the white metal right now because it has been less bullish than gold lately, and represents a better bargain.
Regardless, he thinks that gold will eventually hit more than $2,000 per troy ounce, by some undisclosed date. He advocates buying physical gold over gold shares, citing its liquidity, portability and "real" value.
The hedge fund manager is pessimistic about the state of the global economy and told an investors conference in Kuala Lumpur on Wednesday that "Bonds are not a good place to invest in. You should own commodities because that’s your only refuge."
Rogers gained international renown after calling the beginning of the global surge in commodities prices that began in 1999. In 1998, he created the Rogers International Commodity Index, which is a dollar-based basket of 36 commodities across three major sectors: agriculture, energy and metals.
The RICI includes gold, silver, palladium, platinum, crude oil, natural gas, rice, coffee, cocoa wheat and sugar.
Tuesday, July 6, 2010
Superior Gold Group - Indian silver imports look to recover, driving up prices
India is the world's largest consumer of gold and one of the largest consumers of silver, so the trends in its imports tend to have a strong impact on the markets. With that in mind, the news from MineWeb that silver buying in the subcontinent is looking to have a strong recovery represents good news for the metal.
Bullion traders told the magazine that this year, India will buy far more than than the 1,000 tons of silver it bought last year, possibly as much as 1,500 tons. Much of the demand is due to silver's role as an investment and a hedge against inflation.
In many Asian countries, particularly India, investors are cautious of the dangers of inflation or national crises, and stockpiling precious metals like physical gold and silver is a longstanding tradition. There is also a significant component of demand for consumer use, primarily in jewelry. It is the manufacture of jewelry that consumes the majority of India's physical gold imports.
In New York trading, the price of silver futures rose by .46 percent to $17.80 per troy ounce.
Bullion traders told the magazine that this year, India will buy far more than than the 1,000 tons of silver it bought last year, possibly as much as 1,500 tons. Much of the demand is due to silver's role as an investment and a hedge against inflation.
In many Asian countries, particularly India, investors are cautious of the dangers of inflation or national crises, and stockpiling precious metals like physical gold and silver is a longstanding tradition. There is also a significant component of demand for consumer use, primarily in jewelry. It is the manufacture of jewelry that consumes the majority of India's physical gold imports.
In New York trading, the price of silver futures rose by .46 percent to $17.80 per troy ounce.
Sunday, July 4, 2010
Superior Gold Group - Gold recovers from five-week low as economies struggle
After a rough few days, gold futures rose 1 percent to trade at $1,210.55 per troy ounce in New York. Gold prices hit a record high of $1,266.50 per troy ounce in every major currency in mid-June, but fell for the rest of that month, briefly sinking below $1,200.
The specter of a double-dip recession, combined with inflationary fears that have been dogging the markets, combined to help support the yellow metal today. In Europe, a shift to austerity in England, Germany, Greece and Ireland could undercut growth and leave consumer demand and unemployment sluggish.
In the U.S., the states' budgets are in horrid shape and unemployment fell in June for the first time since 2009. A large portion of the drop in unemployment came from the ending of temporary contracts for census workers, a process which will continue for months, weighing on jobless figures.
If the federal government doesn't step in to artificially stimulate demand, the economy may slump - but if it does, it could trigger rapid inflation.
Investors hedge against both possibilites by putting their money in gold, relying on it as a store of value.
The specter of a double-dip recession, combined with inflationary fears that have been dogging the markets, combined to help support the yellow metal today. In Europe, a shift to austerity in England, Germany, Greece and Ireland could undercut growth and leave consumer demand and unemployment sluggish.
In the U.S., the states' budgets are in horrid shape and unemployment fell in June for the first time since 2009. A large portion of the drop in unemployment came from the ending of temporary contracts for census workers, a process which will continue for months, weighing on jobless figures.
If the federal government doesn't step in to artificially stimulate demand, the economy may slump - but if it does, it could trigger rapid inflation.
Investors hedge against both possibilites by putting their money in gold, relying on it as a store of value.
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