08/23/2011 (4:04 pm)

Stocks jump; Dow notches best gain in 2 weeks

Filed under: Uncategorized, legal |

The Dow Jones industrial average is closing with its biggest gain in nearly two weeks.

Investors were picking up beaten-down stocks Tuesday after fears that the U.S. would slip into a recession pounded the market over the last month.

The Dow rose 322 points, or 3 percent, to close at 11,177. That’s its best day since it jumped 423 points Aug. 11. It dipped about 60 points shortly after the quake hit the East Coast in the early afternoon, but recovered within minutes.

The S&P 500 index rose 39 points, or 3.4 percent, to 1,162. The Nasdaq rose 101 points, or 4.3 percent, to 2,446.

Five stocks rose for every one that fell on the New York Stock Exchange. Trading volume was higher than average at 5.2 billion shares.

Source

08/02/2011 (9:52 am)

SKorean central bank buys gold after long hiatus

Filed under: Lenders, legal |

South Korea’s central bank has purchased gold for the first time since the Asian financial crisis more than a decade ago as it seeks to diversify the country’s increasing pot of foreign reserve holdings.

The gold portion of South Korea’s official foreign reserves surged to $1.32 billion at the end of July from $80 million at the end of June, the Bank of Korea said Tuesday.

The country’s total foreign reserves, meanwhile, reached $311.03 billion at the end of July, an increase of $6.55 billion from the $304.48 billion in June, the bank said in a statement

The July total was a fresh record high after two months of declines. South Korea’s foreign reserves have surged this year and have now hit all-time highs in five of the past seven months.

South Korea’s reserves are largely invested in securities and deposits, according to the bank. A smaller component is a notional currency called Special Drawing Rights, which are overseen by the International Monetary Fund. Despite the big increase in gold holdings, the precious metal still accounts for the smallest portion of the reserves.

In a separate statement, the bank said that gold purchases in June and July amounted to 25 tons and brought total holdings to 39.4 tons. The purchases were reflected in July’s official reserves, it said.

The BOK said that the increase in gold holdings makes sense given the growth in the country’s total foreign reserve holdings and will be positive in improving the diversification of how the reserves are invested. The bank said it purchased gold as a long-term investment.

South Korea’s foreign reserve holdings surged past $300 billion for the first time in April.

The price of gold has soared to record nominal highs as it has won favor with investors who see it as a safe investment amid uncertainties that have plagued the world economy following the 2008 global financial crisis and continuing worries over sovereign debt instability in Europe and the United States.

South Korea’s central bank last bought gold in 1998 after the country suffered a massive foreign exchange crisis and was forced to seek an international financial bailout. The experience, part of broader economic turmoil in East Asia in 1997 that struck Thailand and Indonesia as well, has left a deep emotional scar on South Korean policymakers and ordinary citizens.

Individual South Koreans donated gold to the government, which then sold it to earn badly needed foreign exchange. The BOK bought up what was not sold internationally, according to the bank.

The central bank attributed July’s increase in the overall reserves mainly to the higher dollar value of the portion denominated in the Japanese yen and British pound in line with their strength against the greenback. The bank said that increased operating profits on the reserves also contributed to the gain.

Foreign reserves are a key economic and policy tool that countries can wield to defend their currency from speculative attack, provide liquidity and bolster the overall financial system. Asian countries and territories lead the world in reserve holdings.

South Korea’s reserves remained the world’s seventh largest behind those of China, Japan, Russia, Taiwan, Brazil and India as of the end of June, according to the central bank, which did not provide a global ranking for July. Seven of the top 10 holders of reserves as of the end of June were in Asia, according to the bank.

Source

06/28/2011 (2:32 pm)

Strong earnings from Nike lift broad stock rally

Filed under: legal, marketing |

Maybe the global economy isn’t in such bad shape after all.

After weeks of worries about the economy pulled stocks down, indexes have risen sharply for two days in a row.

The Dow Jones industrial average rose more than 120 points in midday trading Tuesday, thanks in part to signs that concerns of a global slowdown may be overblown. Quarterly results from Nike Inc. bested analysts’ expectations helped spark a rally in stocks of clothing stores, restaurants and jewelers. Such companies tend to do well when consumers are less worried about things like high gas prices and are willing to spend on themselves.

Other industries that do well during periods of economic expansion led the stock market higher. Caterpillar Inc., one of the 30 stocks that make up the Dow, gained the most, rising 2.3 percent. Industrials gained 1.2 percent overall. Consumer discretionary companies gained 1.6 percent.

Signs that the housing market is improving helped lift Home Depot Inc., a company that benefits when consumers spend money on home improvement. Home Depot gained 2.1 percent following a report that home prices rose in April in 13 of the 20 cities tracked by the Standard & Poor’s/Case-Shiller index. The index rose for the first time in eight months thanks to an annual push to buy homes in the spring.

The long slump in the housing market has been a drag on the U.S. economic recovery. Housing usually leads the economy out of recessions. But that hasn’t been the case with the current recovery, which began in June 2009 Low fee payday loans.

A decline in U.S. consumer confidence to a seven-month low, largely because of worries about jobs, did not slow down the gains in stocks.

The Dow gained 121 points, or 1 percent, to 12.164 in afternoon trading. The Standard & Poor’s 500 index rose 14, or 1.1 percent, to 1,294. The Nasdaq composite index added 34, or 1.3 percent, to 2,722.

Signs that the Greece may be making progress in its debt crisis also boosted markets. Greek lawmakers are debating austerity measures that must be passed to secure the next installment of emergency loans from international lenders. On Monday French banks agreed to accept slower repayment on Greek debts, another key step in avoiding a Greek debt default.

Among U.S. companies, Accenture rose 3.5 percent after S&P announced that the company would be added to its S&P 500 index. And tobacco company Altria Group fell 2 percent after the Food and Drug Administration announced it is reviewing research to determine the public health impact of menthol cigarettes.

Government bond prices fell as investors put a greater value on riskier assets like stocks. The yield on the benchmark 10-year Treasury rose to 3.03 percent from 2.93 percent Monday. Bond yields rise when prices fall. Bond yields fell to their lowest level of the year last week due to concerns that Greece’s debt problems would spread to other European countries.

Source

04/18/2011 (7:16 am)

Greece Says No Restructuring Plan in Place as Traders Raise Default Bets - Bloomberg

Filed under: Lenders, legal |

Greece said it has no plans for a debt restructuring even as German officials openly discuss the possibility and investors charge a record amount to insure the country’s obligations.

“Restructuring is not an issue we’re discussing,” Greek Finance Minister George Papaconstantinou said in an April 16 interview in Washington. “The pain and the cost” of doing so would be greater than repaying lenders, he told reporters the same day.

Greece found support from International Monetary Fund Managing Director Dominique Strauss-Kahn and French Finance Minister Christine Lagarde after German Finance Minister Wolfgang Schaeuble was quoted as saying “further measures may have to be taken” if Greece fails a June audit. German Deputy Foreign Minister Werner Hoyer told Bloomberg News last week that restructuring “would not be a disaster.”

Traders are betting on a default. The cost of insuring Greek government debt rose to a record 1,155 basis points on April 15, according to CMA prices for credit-default swaps. The contracts indicate investors see about a 63 percent chance the nation will default within five years.

‘Rightly Nervous’

Restructuring would “create realized losses across the global banking system — but mainly in Europe,” David Zervos, head of global fixed-income strategy at Jefferies & Co. in New York, said in a note to clients on April 15. “Markets are rightly nervous.”

Greece’s aid program was designed on the assumption that the country would repay debt rather than restructure, and “nothing has changed,” Strauss-Kahn said as he hosted the IMF’s semi-annual meetings in the U.S. capital. Lagarde said April 14 at the same talks that “there is no discussion about debt restructuring, none whatsoever.”

The yield on 10-year Greek debt rose 55 basis points to 13.83 percent on April 15, widening the spread over German bunds to a record 1,045 basis points. The euro dropped from a 15-month high versus the dollar on concern of the first default by a euro-area country. A basis point is 0.01 percentage point.

“The issue of Greece is not whether there will be debt restructuring, but when it will be done, and whether it will be an orderly market-oriented debt exchange or disorderly like in Argentina,” Nouriel Roubini, the economist who predicted the global financial crisis, said at a conference in Kazakhstan on April 15.

Euro Partners

Greece has asked euro-area partners to consider rescheduling all of its debt, the Wall Street Journal reported citing people familiar with the matter who weren’t identified. A finance ministry press officer in Athens, who declined to be identified citing government policy, denied the report.

Lucas Papademos, an adviser to Greek Prime Minister George Papandreou and a former vice president of the European Central Bank, suggested April 9 that extending maturities of debt would be one option to consider after implementing measures attached to a 110 billion-euro loan package from the European Union and IMF.

Asked April 16 about the possibility, Papaconstantinou declined to comment directly. Rescheduling all debt and pushing back maturity of European loans is “not the same thing,” he said in Washington. “The official sector can choose to do so.”

‘No Need’

European Central Bank governing council member Ewald Nowotny said he sees “no need” for a restructuring by Greece. Such a step “would be very harmful and not efficient,” he said in an April 16 interview with Bloomberg News in Washington.

Questions over Greek finances are mounting while the country steps up efforts to reduce its budget deficit. Greece last week outlined 26 billion euros in cuts and 50 billion euros in asset sales.

The Wall Street Journal reported that IMF officials believe Greece’s debt burden is unsustainable and should be restructured. William Murray, an IMF spokesman, said yesterday that “there is absolutely no truth” to the story. Martin Kotthaus, a spokesman for Schaeuble, said there is “no basis” for a Financial Times report that German officials are considering a plan to let holders of Greek bonds swap them for safer securities guaranteed by euro-member countries.

Greece isn’t the only euro-area country relying on support from neighboring governments and the IMF. Officials are preparing a plan to support Portugal, and Ireland has also received a bailout.

Source

04/09/2011 (11:24 pm)

Geist: The Boxing Day shopper who upended privacy laws

Filed under: legal, management |

Sharon Curtis, an Alberta resident, visited a Leon

04/02/2011 (12:36 am)

More disciplined Libyan opposition force emerging

Filed under: legal, money |

Something new has appeared at the Libyan front: a semblance of order among rebel forces.

Rebels without training _ sometimes even without weapons _ have rushed in and out of fighting in a free-for-all for weeks, repeatedly getting trounced by Moammar Gadhafi’s more heavily armed forces. But on Friday only former military officers and the lightly trained volunteers serving under them are allowed on the front lines. Some are recent arrivals, hoping to rally against forces loyal to the Libyan leader who have pushed rebels back about 100 miles this week.

The better organized fighters, unlike some of their predecessors, can tell the difference between incoming and outgoing fire. They know how to avoid sticking to the roads, a weakness in the untrained forces that Gadhafi’s troops have exploited. And they know how to take orders.

“The problem with the young untrained guys is they’ll weaken us at the front, so we’re trying to use them as a backup force,” said Mohammed Majah, 33, a former sergeant.

“They don’t even know how to use weapons. They have great enthusiasm, but that’s not enough now,” he said.

Majah said the only people at the front now are former soldiers, “experienced guys who have been in reserves, and about 20 percent are young revolutionaries who have been in training and are in organized units.”

The greater organization was a sign that military forces that split from the regime to join the rebellion were finally taking a greater role in the fight after weeks trying to organize. Fighters cheered Friday as one of their top commanders _ Col. Khalifa Hafter, a former senior figure in Gadhafi’s military _ drove by in a convoy toward the front.

It was too early to say if the improvements will tip the fight in the rebels’ favor. They have been struggling to exploit the opportunity opened by international airstrikes hammering Gadhafi’s forces since March 19.

In a sign the strikes may be eroding Gadhafi’s resilience, his government is trying to hold talks with the U.S., Britain and France in hopes of ending the air campaign, said Abdul-Ati al-Obeidi, a former Libyan prime minister who has served as a Gadhafi envoy during the crisis. “We are trying to find a mutual solution,” he told Britain’s Channel 4 News on Friday.

British officials met with Mohammed Ismail, a Libyan government aide who happened to be in London visiting relatives, and told him Gadhafi must quit, two people familiar with the issue said Friday. The two demanded anonymity to discuss details.

The opposition said Friday in Benghazi, its de facto capital, that it will agree to a cease-fire if Gadhafi pulls his military forces out of cities and allows peaceful protests against his regime.

The rebel condition is that “the Gadhafi brigades and forces withdraw from inside and outside Libyan cities to give freedom to the Libyan people to choose,” said Mustafa Abdul-Jalil, head of the opposition’s interim governing council. “The world will see that they will choose freedom.”

He spoke at a press conference with U.N. envoy Abdelilah Al-Khatib. Al-Khatib met Libyan officials in Tripoli on Thursday before holding talks with rebels in hopes of reaching a political solution.

The U.N. resolution that authorized international airstrikes against Libya called for Gadhafi and the rebels to end hostilities. Gadhafi announced a cease-fire immediately but has shown no sign of heeding it.

His forces continue to attack rebels in the east, which is largely controlled by the opposition, and have besieged the only major rebel-held city in the west, Misrata.

Misrata has been shelled by tanks and artillery for days, said a doctor in a city hospital who spoke on condition of anonymity out of fear of reprisals. Many people have been killed, including eight since Thursday, he said. He said Gadhafi brigades control the port and a main street, but rebels control the heart of the city.

At the main front, which has moved back and forth in a fringe between the rebel-held east and Gadhafi-ruled west, the rebels’ losses this week underlined the inferiority of their equipment, training and organization, compared to the regime’s.

There were signs of at least some rebel improvement in all three areas Friday.

The rebels had mortars, weapons they previously seemed to lack, and on Thursday night they drove in a convoy with at least eight rocket launchers _ more artillery than usual. The rebels also appeared to have more communication equipment such as radios and satellite phones. A newly installed diesel generator, allowing pumps at a gas station east of the main fighting, was another improvement.

They also appeared to get some international air support. Rebels east of Ajdabiya chanted “Allah akbar,” or “God is great,” as two planes flew overhead, and later eight to 10 heavy blasts _ more powerful than regular shelling _ were heard in the west, where Gadhafi’s forces were.

Rebels had pleaded in vain for international airstrikes much of the week. U.S. Joint Chiefs Chairman Adm. Mike Mullen said Thursday that most combat missions had been grounded by bad weather.

It was unclear where the front line was on Friday. A day earlier, the opposition moved into Brega, about 50 miles (80 kilometers) east of Ajdabiya, but were again pushed out by Gadhafi’s forces.

Ahmed al-Shiri, a 47-year-old former high-ranking officer from Benghazi, said Gadhafi forces were in Bishr, about 25 miles (40 kilometers) west of Brega.

NATO said it conducted a total of 178 flights, including 74 “strike sorties,” on Thursday, when it formally took control of what had been a U.S.-led military campaign against Gadhafi. The Obama administration, already fighting wars in two Muslim nations, had been eager to give up that responsibility.

The U.S. Defense Department announced it will end command missions in Libya on Saturday, leaving the work for other NATO members. The decision drew incredulous reactions from some in Congress.

The better organized rebel force took a long time to deploy mainly because it was being drawn up from scratch.

“We were setting up and training and establishing units all over Libya,” said Hamid Muftah, 41, a former member of air force now with the rebels. The volunteers got about 25 days of training and have been organized into six- or seven-member groups each led by a defector from the regular military.

“They’re still not that good, but they’ll get experience,” Muftah said.

“We can’t just do what we want now,” said Nasser Zwei, a 40-year-old oil engineer behind the wheel of an oil-company pickup truck, now equipped with an anti-aircraft gun. “We follow directions. It will make a difference.”

Now untrained fighters are turned away at checkpoints. They stay to the rear to hold the line temporarily in case Gadhafi’s forces attempt to flank the trained rebels, said Ali Bin-Amr, a 26-year-old fighter.

Al-Shiri, the former high ranking officer, said the improvements were set up over the past weeks. He blamed “lack of organization” for the rebels’ failure to reach Sirte, the Gadhafi stronghold they were marching on last week when they were turned back by an overwhelming force of artillery and rocket fire.

Now “we get orders from the military council in Benghazi. They’re in control. The army is in control,” he said. The undisciplined fighters “are not leading the way anymore.”

The international effort to stop Gadhafi from attacking his opponents is deeply divided on whether to arm the rebels, but they may soon get their own money to buy weapons. The opposition’s National Transitional Council has reached agreement with Qatar on a plan to sell rebel-held oil to buy weapons and other supplies, according to Ali Tarhouni, who handles finances for the council.

Gadhafi’s greatest losses this week were not military but political. His foreign minister and another member of his inner circle abandoned him Wednesday and Thursday, setting off speculation about other officials who may be next. The defections could sway people who have stuck with Gadhafi despite the uprising that began Feb. 15 and the international airstrikes aimed at keeping the autocrat from attacking his own people.

Libyan state TV aired a phone interview with intelligence chief Bouzeid Dorda to knock down rumors that he also left Gadhafi.

“I am in Libya and will remain here steadfast in the same camp of the revolution despite everything,” Dorda said.

Source

03/04/2011 (11:44 pm)

Child labor, GOP budget cuts, Sheen’s career suicide

Filed under: legal, management |

QUOTE OF THE WEEK

“The penalties imposed as a result of these violations should serve as a wake-up call to movie theater owners and other employers. Businesses that employ minors are legally and ethically obligated to abide by child labor standards and ensure youth are protected on the job.”

02/26/2011 (11:44 am)

Banks headquartered in the St. Louis area: a snapshot

Filed under: Mortgage, legal |

 

 

                        
No. of
banks     
Return on assets*           
Bad loans/Total loans **          

Bad loans and
foreclosed property/Total loans                  

Tier 1 leverage ratio   
Q3 2008
80 0.36% 1.71% 2.61% 10.28% Q4 2008  
79 0.16% 1.58% 2.62% 9.85% Q1 2009 78 0.18% 2.01% 3.14% 9.77% Q2 2009 78 0.15% 2.45% 3.71% 9.69% Q3 2009 79 0.05% 2.67% 3.98% 9.61% Q4 2009 78 -0.07% 2.73% 4.05% 9.37% Q1 2010 78 0.55% 2.90% 4.45% 9.46% Q2 2010 77 0.47% 2.62% 4.21% 9.51% Q3 2010 76 0.46% 2.86% 4.53% 9.52% Q4 2010 75 0.39% 3.06% 4.69% 9.50%

 

* Return on assets: Bank profit as a percent of assets. The higher the number, the better. In good times, the figure is usually more than 1 percent.

** Problem loans to total loans: The percentage of loans upon which payment is very delinquent. The lower the number, the better.

*** Tier 1 leverage ratio: A measure of a bank’s capital adequacy. The number must be at 5 percent or higher for the bank to be considered “well capitalized.”

SOURCE: Federal Reserve Bank of St. Louis

Source

02/23/2011 (5:52 am)

Banks pick up lending as business improves

Filed under: Mortgage, legal |

Now that demand is up and business is finally improving for many companies, they’re doing what they always do at the beginning of an expansion

02/02/2011 (6:04 am)

Strong earnings send stocks higher

Filed under: News, legal |

Better than expected earnings reports and a lift in the manufacturing sector sent stocks higher Tuesday.

Pfizer Inc., United Parcel Service Inc. and agriculture giant Archer Daniels Midland Co. all beat earnings forecasts.

The Institute of Supply Management said Tuesday that manufacturing activity expanded in January at its fastest pace in nearly seven years. Increased spending by businesses and consumers helped push the index higher, the company said.

“This is a good indicator that businesses have come out of the gate strongly in 2011,” said Burt White, chief investment officer for LPL Financial. “We are seeing businesses spend again and this is exactly what we needed to see for this economy to move forward.”

The better economic data helped push stocks broadly higher. The Standard and Poor’s 500 stock index _ the benchmark for most U.S. mutual funds _ traded above 1,300. If it closes above that level, the index will reach its highest point since Aug. 28, 2008.

All 10 company groups that make up the Standard and Poor’s 500-stock index rose. Materials companies rose 2.2 percent, the largest gain of any group.

The S&P index gained 16 points, or 1.2 percent, to 1,301 in morning trading. The Dow Jones industrial average gained 93 points, or 0.8 percent, to 11,984. The Nasdaq composite index rose 38, or 1.4 percent, to 2,738.

Before the market opened, Archer Daniels Midland said that its profit jumped 29 percent last quarter because of growing demand for grains. The agriculture conglomerate easily beat analyst estimates and its stock jumped 6 percent.

United Parcel Service Inc. said its 2011 earnings will likely top its pre-recession levels from 2007. UPS gained 4 percent.

Pfizer Inc. said its fourth-quarter profit nearly quadrupled and its revenues rose 6 percent. The company narrowly beat analyst estimates and gained 4.8 percent.

Electronic Arts and Boston Scientific are among the companies that will report earnings by the end of the day.

Bond prices fell, sending their yields higher. The yield on the benchmark 10-year Treasury note rose to 3.45 from 3.38 percent late Monday.

Energy stocks led indexes higher Monday, the first day of trading since the growing unrest in Egypt caused the largest one-day drop in the broad stock market in more than three months.

The Dow Jones industrial average gained 68 points, or 0.6 percent, to close at 11,891.93 Monday. It finished the month with its best January performance in 14 years. The broader Standard and Poor’s 500 index rose 10, or 0.8 percent, to 1,286.12. The Nasdaq composite index gained 13, or 0.5 percent, to 2,700.08.

Source

« Previous PageNext Page »