The Financials Review
For the week of August 15, 2011
By Frank LaMantia
New York manufacturing data has fallen for the third straight month. The premarket was barely affected by this but the data should not be overlooked. Volatility is the game that traders seem to be playing and it could stay like this for the near future. The government keeps low rates dangling in front of consumers but this may not be enough to invoke confidence. The questions one should be asking are, will Germany be a driving force in helping the European nations? If Germany helps Italy do they have enough to help others?
Motorola Mobility Holdings Inc. is being bought by Google for $12.5 billion in cash and could be Google's biggest purchase. The price would be $40 per share, which is 63% premium to the closing price on Friday. Motorola has struggled because it has competed with Apple's smartphone. Motorola as many already know has products based off of the Android model. Lowes reported weaker sales for the second quarter due to consumers spending less money on renovations. Warren Buffet thinks that billionaires should be taxed more. He believes that lawmakers coddle the superrich and that they have enough money. Buffett paid 17.4 in taxes and that typical tax burden ranges from 33%-41%. Sure, what does he care! He is 80 years old and may only be taxed for another decade or so. Taxing billionaires may not solve the world's problems.
*chart courtesy Gecko Software
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