I have over 30 years of professional experience in financial planning and investment management. I attended Lycoming College from 1978 to 1982, where I earned my BA in Business. I am a member of the Financial Planning Association and the Society of Financial Service Professionals. I enjoy international travel and I am passionate about horses, boating, fishing, fine wine and gourmet cooking. I am active in fund raising activies for local charities such as the Bonnie Brae School and Residential Treatment...
News Analysis for the Investor on December 5, 2012
It's no fantasy land; Netflix acquires exclusive right to Disney films. Read about this and more of the day's top business news stories.
Netflix Disney Dreams Come True
Netflix must have wished upon a star, because it succeeded in acquiring the exclusive U.S. rights to Walt Disney Studios films beginning in 2016. The three-year deal establishes Netflix as a direct competitor to pay-TV giants such as HBO and Showtime. Starz previously had the rights to Disney movies, including its Pixar animated blockbusters and Marvel superhero films. Disney also agreed to immediately give Netflix non-exclusive rights to Disney’s catalog, including Dumbo, Alice in Wonderland and Pocahontas, The Los Angeles Times reports. Although terms were not disclosed, a person close to the matter told the Times that Netflix could ultimately pay more than $300 million annually for Disney movies. News of the agreement sent Netflix stock flying like Peter Pan to $87.59, a 15 percent increase.
Canadian Pacific Railway to Eliminate 4,500 Positions
Canadian Pacific Railway will eliminate some 4,500 employee and contractor positions by 2016, Hunter Harrison, the new chief executive of Canada's second largest railway announced Tuesday, The Associated Press reports. Harrison said he expects 1,700 positions to be eliminated before the end of the year. CP's total workforce is 19,500, which includes employees and contractors. American-born Harrison, the retired CEO of Canadian National Railway, is credited with turning the Montreal-based company into the most efficient major railway in North America, the AP said.
Fiscal Cliff Talks Still Stalled
With only a few weeks to go until the fiscal cliff deadline, taxes on the wealthiest Americans continue to be a stumbling block between the White House and lawmakers. There are no scheduled formal sessions to resume negotiations. President Obama is calling for the House of Representatives to approve the extension of tax cuts for families making less than $250,000 per year, as already approved by the Senate. This stand-off caused US stocks to fall on Tuesday.
Pandora Hits a Sour Note
Pandora Media Inc. lowered its fourth quarter guidance because advertisers have pulled back on spending in the midst of uncertainty surrounding the fiscal cliff, The Chicago Tribune reports. The online streaming music service dropped by 20 percent in after-hours trading. Pandora announced it expects fourth quarter revenue between $120 million to $123 million, well below analyst expectations. Pandora's fiscal fourth quarter ends in January, which is why the fiscal cliff impacts the company’s forecast.
U.S. Bank Earnings at Six-Year High
U.S. banks earned more from July through September than in any other quarter over the past six years, the Associated Press reports. The Federal Deposit Insurance Corp. said Tuesday that the banking industry earned $37.6 billion in the third quarter, up 6.6 percent from $35.3 billion in the third quarter of 2011. More than half of the banks (57 percent) reported improved earnings, which allowed them to set aside less for losses on loans. The number of troubled banks fell to the lowest level in three years. No Agreement on EU Bank Supervision
EU finance ministers have failed to reach agreement on setting up a single supervisor for eurozone banks after a meeting in Brussels, the BBC reports. German and French ministers in particular clashed over the plans to establish a single supervisor under the European Central Bank (ECB), which is seen as the first step in setting up a Europe-wide banking union. German Finance Minister Wolfgang Schauble warned that giving the ECB final say on the supervision of eurozone banks could compromise its independence. EU officials are anxious that an agreement is reached before the end of the year.