Berkshire Billion Dollar Share Buy Back|
Berkshire Hathaway Inc. (BRK-A:NYSE) (BRK-B:NYSE), controlled by Warren
Buffett, announced on Wednesday that they bought 9,200 of its Class A shares for
$131,000 per share from the estate of a long-time un-named shareholder. Trading
was halted on the New York Stock Exchange and after the announcement when
trading resumed, both class of shares reopened to the upside. Berkshire 's board
of directors authorized the purchase "coincident with raising the price limit
for repurchases to 120% of book value" and said it may buy additional shares in
the market or through direct offerings at no more than 120% of book value.
Reports on Wednesday indicate executives at Big Lots (BIG:NYSE) sold more than
$23 million in stock, outside of preset trading plans, ahead of an announcement
that caused the retailer's stock price to go down. Per regulatory filings, a
stock sale by the 10 executives amounted to the largest bulk of unplanned
trading reported in a single month over the past eight years. Regulators are
probing a $10 million sale of Big Lots stock by Steven Fishman, the chief
executive of the company.
Text of the Federal Reserve’s interest-rate decision announced Wednesday:
“Information received since the Federal Open Market Committee met in October
suggests that economic activity and employment have continued to expand at a
moderate pace in recent months, apart from weather-related disruptions. Although
the unemployment rate has declined somewhat since the summer, it remains
elevated. Household spending has continued to advance, and the housing sector
has shown further signs of improvement, but growth in business fixed investment
has slowed. Inflation has been running somewhat below the Committee’s longer-run
objective, apart from temporary variations that largely reflect fluctuations in
energy prices. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. The Committee remains concerned that, without
sufficient policy accommodation, economic growth might not be strong enough to
generate sustained improvement in labor market conditions. Furthermore, strains
in global financial markets continue to pose significant downside risks to the
economic outlook. The Committee also anticipates that inflation over the medium
term likely will run at or below its 2 percent objective. To support a stronger
economic recovery and to help ensure that inflation, over time, is at the rate
most consistent with its dual mandate, the Committee will continue purchasing
additional agency mortgage-backed securities at a pace of $40 billion per month.
The Committee also will purchase longer-term Treasury securities after its
program to extend the average maturity of its holdings of Treasury securities is
completed at the end of the year, initially at a pace of $45 billion per month.
The Committee is maintaining its existing policy of reinvesting principal
payments from its holdings of agency debt and agency mortgage-backed securities
in agency mortgage-backed securities and, in January, will resume rolling over
maturing Treasury securities at auction. Taken together, these actions should
maintain downward pressure on longer-term interest rates, support mortgage
markets, and help to make broader financial conditions more accommodative. The
Committee will closely monitor incoming information on economic and financial
developments in coming months. If the outlook for the labor market does not
improve substantially, the Committee will continue its purchases of Treasury and
agency mortgage-backed securities, and employ its other policy tools as
appropriate, until such improvement is achieved in a context of price stability.
In determining the size, pace, and composition of its asset purchases, the
Committee will, as always, take appropriate account of the likely efficacy and
costs of such purchases. To support continued progress toward maximum employment
and price stability, the Committee expects that a highly accommodative stance of
monetary policy will remain appropriate for a considerable time after the asset
purchase program ends and the economic recovery strengthens. In particular, the
Committee decided to keep the target range for the federal funds rate at 0 to
1/4 percent and currently anticipates that this exceptionally low range for the
federal funds rate will be appropriate at least as long as the unemployment rate
remains above 6-1/2 percent, inflation between one and two years ahead is
projected to be no more than a half percentage point above the Committee’s 2
percent longer-run goal, and longer-term inflation expectations continue to be
well anchored. The Committee views these thresholds as consistent with its
earlier date-based guidance. In determining how long to maintain a highly
accommodative stance of monetary policy, the Committee will also consider other
information, including additional measures of labor market conditions,
indicators of inflation pressures and inflation expectations, and readings on
financial developments. When the Committee decides to begin to remove policy
accommodation, it will take a balanced approach consistent with its longer-run
goals of maximum employment and inflation of 2 percent. Voting for the FOMC
monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice
Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H.
Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C.
Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker,
who opposed the asset purchase program and the characterization of the
conditions under which an exceptionally low range for the federal funds rate
will be appropriate.”
The New York Fed said it would buy 29% of the $45 billion in new Treasurys in
the 7-to-10 year maturity and 27% in the 20-30 year maturity. Other maturities
range from 4-4.75 years, 4.75-5.75 years, 5.75-7 years, 10-20 years, and 4-30
The Commerce Department said Wednesday that prices paid for goods imported into
the U.S. fell 0.9% in November, mainly because of lower energy costs. The
import-price index for October was revised down to an increase of 0.3% from an
initial reading of 0.5%. Import prices fell by 0.2% during November, excluding
fuel. Cost of fuel fell 3.0% during November. The price of U.S. made goods
exported to other nations fell 0.7% during November.
on Day Trading with confirmed subscription to our Free
open to Options Traders with hours most active market days from 9am to 4pm ET.
One week trial
Day Trading Rooms
for stocks, futures, forex and futures. Professional
available for stocks, futures and forex traders.
focus on NYSE, NASDAQ and AMEX.
focus on YM, NQ, TF and ES.
based on New York trading session focus on GBPUSD, USDCAD, USDJPY, EURUSD,
GBPJPY, USDCHF, EURJPY, EURAUD, AUDJPY, CHFJPY, EURCAD, GBPCAD and AUDUSD.
Detailed historic performance for all calls is available on our
Opt-in to our
sent via email, first trading day of the week which includes recap of markets
from previous week and what is ahead for the upcoming trading week.
provides new trading subject every month.
Free Chat Rooms
- penny stocks, options, stocks, futures and forex! Chat with other traders any
time, day or night, 24-hours a day.