February 11, 2013 Update

DJIA:13,992 NASDAQ:3,193 10-YR TRS: 18/32, yield 1.953% Oil:$95.72 EURO:$1.3365 YEN:92.69

Time: The Most Natural Resource

Have you ever wondered why time feels as though it passes faster during the opening bell when compared to the rest of the trading day? Or why your fortieth birthday came so quickly but turning ten felt like it took a lifetime? Humans do not perceive the passing of time in a homogenous manner. For some, an hour spent with family is more valuable than an hour of paid labor; but for others, “quality time” is most valuable when yielding profit. Time is money, as the phrase goes... but what exactly is time if it’s not a social construct? Measuring time, like money, is a means in deducing value and has no scientific evidence of its existence. And because it is not scientifically proven, I argue an hour is an economic commodity; a humane raw material.  Most commodities can only be accumulated with time, but a person’s time can be bought or sold continuously. And, because of this, rather than measure how much time has passed, figure out what your time is worth - make it count. 

Domestic News

• Market Update. Trading slightly higher with little influence from international markets. 
• Life in the northeast is beginning to resume as usual. Only 66 flights were canceled so far today, roads are being cleared, and the power is starting to come on for many. However, watch out as another blizzard is expected to come our way! 

International Updates

Asia

• Market Update. Mainland China, Hong Kong, Taiwan, Singapore, South Korea, and Malaysia are closed for the Lunar New Year. Japanese markets are closed for the National Foundation Day.

Europe

• Market Update. Fighting for direction as markets suffer from low volume because of the Lunar New Year. 
• Global investment infrastructure declined 38% to $99B in 2012 as governments cut spending and banks reduced lending to meet the requirement of Basel III. 

Corporate

• US Airways (LCC) is closing on a deal with American Airlines in which the two companies would merge. US Airways is the fifth largest airline and American Airlines is the third largest by traffic. Together, they would form the world’s largest carrier. The deal is valued at $11B.
• Richard Roberts, the slowest judge in Washington, D.C., is handling AB InBev’s (BUD) acquisition of the 50% of Grupo Modelo it does not already own. Last year Richards had 73 motions pending for over half a year and over 50 cases pending for more than three years!
• Chrysler (FIATK.PK) has announced the auto-financing unit it has formed with Banco Santander (SAN) will reduce the average wait to receive financing approval. Santander is creating a separate unit to focus on financing dealership construction, real estate, working capital, and lines of credit. 
• Benchmark downgraded Fossil (FOSL) to “hold” from “buy” on a valuation call. 
• Starbucks (SBUX) has a new competitor in China! The British Coffee chain Costa has planned to open 250 in China by the end of 2013 and 500 stores internationally by 2016.