Editor’s Note: Related tickers: Tesla Motors Inc (NASDAQ:TSLA), First Solar, Inc. (NASDAQ:FSLR), MBIA Inc. (NYSE:MBI), Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC)
Tesla shares up ahead of earnings (NBCNews)
Tesla Motors Inc (NASDAQ:TSLA)‘s shares jumped Monday following a major engineering hire and ahead of the electric car maker’s earnings on Wednesday. THE SPARK: Tesla said Monday that it has hired Chris Porritt, chief engineer of vehicle engineering at Aston Martin, to be its vice president of vehicle engineering. Porritt brings decades of technical design unique leadership experience to Tesla Motors Inc (NASDAQ:TSLA). He built Aston Martin’s engineering team from the ground up and helped design Aston Martin’s famed One-77 supercar. Tesla Motors Inc (NASDAQ:TSLA) also benefited from increasing expectations ahead of its first-quarter earnings report, which is expected Wednesday after the market closes. THE BIG PICTURE: The electric car company, based in Palo Alto, Calif., is a technology focused company that could benefit from a strong engineering team.
Tesla Motors Inc. : Tesla Hires Aston Martin’s Vehicle Engineering Leader (4-Traders)
Tesla Motors Inc (NASDAQ:TSLA) has hired Aston Martin’s Chief Engineer of Vehicle Engineering, Chris Porritt, to be its Vice President of Vehicle Engineering. Chris is a world-class leader and automotive engineer who established Aston Martin’s Vehicle Engineering team from the ground up and used his innovative approach as Chief Engineer for Aston Martin’s One-77 supercar. The One-77 was best known for its advanced structural design combined with cutting edge active suspension and aerodynamics. These combined to make it one of the fastest cars in the world. Chris brings more than 25 years of automotive engineering experience to Tesla Motors Inc (NASDAQ:TSLA).
First Solar Reports Profit on Shift to Power Projects (Bloomberg)
First Solar, Inc. (NASDAQ:FSLR), the largest U.S. solar manufacturer by shipments, reported a first-quarter profit as sales from new power projects surged. Net income was $59.1 million, or 66 cents a share, compared with a year-earlier loss of $449 million, or $5.20 a share, the Tempe, Arizona-based company said today in a statement on Business Wire. Sales climbed 52 percent to $755.2 million. Excluding some one-time expenses, earnings of 69 cents were six cents less than the average of 17 analysts’ estimates compiled by Bloomberg. Chief Executive Officer Jim Hughes, who joined the company a year ago, is seeking to expand its pipeline of utility-scale solar farms under development. First Solar, Inc. (NASDAQ:FSLR)’s shift to building and selling large projects is driving profits while most of its competitors are losing money by focusing on selling panels.
MBIA Corporate Bonds Rally on Settlement News (WSJ)
Corporate-bond investors are cheering MBIA Inc. (NYSE:MBI) +45.37% on news that the insurance firm will get $1.7 billion in a settlement with Bank of America Corp (NYSE:BAC) +5.23% over troubled mortgage securities. MBIA Inc. (NYSE:MBI) bonds maturing in 2022 traded as high as 97 cents on the dollar Monday afternoon after the settlement was reported, according to MarketAxess. Earlier in the day, the bonds were trading nearly as low as 81 cents on the dollar. The settlement sent MBIA shares up 42%. The pact comes as MBIA Inc. (NYSE:MBI) faced a rise in mortgage-related claims, and it will keep the Armonk, N.Y., company’s insurance unit from being taken over by the New York state financial regulator, said people familiar with the deal.
BofA, MBIA Agree to Mortgage Deal (WSJ)
Bank of America Corp (NYSE:BAC) +5.23% agreed to pay MBIA Inc. (NYSE:MBI) +45.37% $1.7 billion to settle a dispute over soured mortgage securities issued during the U.S. housing boom, eliminating major legal uncertainties for both companies. The pact comes as MBIA faced a rise in mortgage-related claims, and it will keep the Armonk, N.Y., company’s insurance unit from being taken over by the New York state financial regulator, said people familiar with the deal. Shares of both companies rose on the news. MBIA Inc. (NYSE:MBI) rocketed 38% and Bank of America Corp (NYSE:BAC) advanced 4.6%.
Cash rates realign with cut in the repo rate (ET)
Cash rates is at 7.30/7.35 per cent, in line with the cut in the repo rate to 7.25 per cent by RBI on Friday. The call rate dropped to 7.10/7.20 per cent at Friday close. The Reserve Bank of India desists from lowering cash reserve ratio, but says will actively manage liquidity. RBI will buy back bonds up to Rs 100 billion on Tuesday. Bank of America Merrill Lynch expects the RBI to conduct OMOs to the tune of 1.6 trillion in FY14, assuming a 50 basis points cash reserve ratio cut in fiscal second half.
New York state to sue Bank of America, Wells Fargo (ET)
New York state Monday announced plans to sue Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) for violating a 2012 settlement aimed at addressing widespread mortgage lending abuses. New York Attorney General Eric Schneiderman said the two banks had “repeatedly” flouted the terms of the $25 billion March 2012 settlement that makes it easier for homeowners to seek loan modifications. Under the terms of the settlement, the banks are to expeditiously notify consumers of the receipt of loan modification applications and abide by a time-frame for processing the application.
