U.S. Stocks Fall as Fed Maintains Plan as Economy Shrinks

Nine out of the 10 groups in the Standard & Poor’s 500 Index retreated as energy and industrial companies fell the most, dropping at least 0.6 percent. An index of homebuilders slipped 1.3 percent as Lennar Corp. declined 2.4 percent. Amazon.com Inc. jumped 4.8 percent after reporting gains in sales and North American operating margin. Facebook Inc. fell 1.4 percent in late trading after posting a drop in profit.
The S&P 500 fell 0.4 percent to 1,501.96 at 4 p.m. in New York. The Dow Jones Industrial Average lost 44 points, or 0.3 percent, to 13,910.42. Both measures yesterday reached their highest levels since 2007. The Russell 2000 Index slid 1.2 percent, falling from yesterday’s record high. About 6.8 billion shares traded hands on U.S. exchanges today, or 9.5 percent above the three-month average.
“The underlying trend for the market is upward, but the problem is there is some weakness in the economic numbers that I don’t think investors have fully factored in,” David Kelly, chief global strategist at JPMorgan Funds in New York, said by phone. His firm oversees about $400 billion. “It’s transitory as the Fed said. But when you put in a negative number on GDP for the fourth quarter, it’s hard for the market to rally.”
Fed Chairman Ben S. Bernanke has unleashed the power of the central bank to buy unlimited amounts of Treasury and mortgage- backed securities in a bid to end a four-year long period of unemployment above 7.5 percent and bolster the economy. The central bank said today it will keep purchasing securities at the rate of $85 billion a month as the economy paused because of temporary forces including bad weather

Earnings to Watch (22/01/2013)

Tuesday before Market Open, or BMO:

Delta Air Lines Inc. (NYSE:DAL)provides scheduled air transportation for passengers and cargo across the U.S. and around the world. The company has a market capitalization of $11.69 billion. It is expected to report fiscal year 2012 fourth-quarter EPS of 28 cents on revenue of $8.58 billion, compared with a profit of 45 cents a share on revenue of $8.4 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of $1.83 on revenue of $36.65 billion. That compares to $1.41 per share and $35.12 billion in the previous year. Delta Air Lines is trading around $13.76 a share. Over the past 12 months, the stock has gained 57.9 percent.

E.I. Du Pont De Nemours and Co. (NYSE:DD) is a chemical company. The company has a market cap of $43.11 billion. It is expected to report FY 2012 fourth-quarter EPS of 7 cents on revenue of $7.3 billion, compared with a profit of 35 cents a share on revenue of $8.43 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of $3.29 on revenue of $35.42 billion. That compares to $3.93 per share and $37.96 billion in the previous year. DuPont is trading around $46.25 a share. Over the past 12 months, the stock has lost 4.8 percent.

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is an international mining company. The company has a market cap of $32.35 billion. It is expected to report FY 2012 fourth-quarter EPS of 76 cents on revenue of $4.62 billion, compared with a profit of 67 cents a share on revenue of $4.16 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of $3.22 on revenue of $18.27 billion. That compares to $4.84 per share and $20.88 billion in the previous year. Freeport-McMoRan Copper & Gold is trading around $34.15 a share. Over the past 12 months, the stock has lost 20.9 percent.

Johnson & Johnson (NYSE:JNJ)is engaged in the research and development, manufacture, and sale of a range of products in the health-care field. The company has a market cap of $201.89 billion. It's expected to report FY 2012 fourth-quarter EPS of $1.17 on revenue of $17.67 billion, compared with a profit of $1.13 a share on revenue of $16.26 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of $5.09 on revenue of $67.31 billion. That compares to $5.00 per share and $65.03 billion in the previous year. J&J is trading around $72.87 a share. Over the past 12 months, the stock has gained 11.9 percent.

Regions Financial Corp. (NYSE:RF)is a financial holding company. The company has a market cap of $10.48 billion. It is expected to report FY 2012 fourth-quarter EPS of 21 cents on revenue of $1.35 billion, compared with a profit of 9 cents a share on revenue of $1.36 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of 74 cents on revenue of $5.42 billion. That compares to 17 cents per share and $5.55 billion in the previous year. Regions Financial is trading around $7.41 a share. Over the past 12 months, the stock has gained 54.6 percent.

Synovus Financial Corp. (NYSE:SNV) is a financial-services and bank holding company. The company has a market cap of $2.07 billion. It is expected to report a loss of 9 cents per share in the fourth quarter of fiscal year 2012 on revenue of $278.93 million, compared with a profit of 1 cent a share on revenue of $300.63 million in the year-ago period. The analysts' consensus full-year forecast calls for a loss per share of 1 cent on revenue of $1.14 billion. That compares to a loss of 15 cents per share and $1.26 billion in the previous year. Synovus Financial is trading around $2.63 a share. Over the past 12 months, the stock has gained 64.8 percent.

The Travelers Cos. Inc. (NYSE:TRV)is engaged in providing a range of commercial and personal property and casualty insurance products and services. The company has a market cap of $28.99 billion. It is expected to report FY 2012 fourth-quarter EPS of 14 cents on revenue of $5.34 billion, compared with a profit of $1.48 a share on revenue of $5.26 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of $5.66 on revenue of $22.37 billion. That compares to $3.28 per share and $22.19 billion in the previous year. Travelers is trading around $76.01 a share. Over the past 12 months, the stock has gained 16.3 percent.

Verizon Communications Inc. (NYSE:VZ) is a provider of communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. The company has a market cap of $120.66 billion. It's expected to report FY 2012 fourth-quarter EPS of 54 cents on revenue of $29.73 billion, compared with a profit of 52 cents a share on revenue of $28.44 billion in the year-ago period. The analysts' consensus full-year forecast calls for EPS of $2.41 on revenue of $115.49 billion. That compares to $2.15 per share and $110.88 billion in the previous year. Verizon is trading around $42.27 a share. Over the past 12 months, the stock has gained 8.3 percent

A Quick Glance at News (22/01/2013)

The Bank of Japanannounced on Tuesday its most determined effort yet to end years of economic stagnation, saying it would switch to an open-ended commitment to buying assets next year and double its inflation target to 2 percent.

Asian shares rose on Tuesday amid optimism over the globalgrowth outlook, but bold easing measures from the Bank of Japanfailed to lift Tokyo equities and the yen rebounded from a brief sell-off as investors digested the central bank's actions.

U.S. safety investigators on Sunday ruled out excessvoltage as the cause of a battery fire this month on a Boeing Co (BA.N) 787 Dreamliner jet operated by Japan Airlines Co (JAL) (9201.T) and said they were expanding the probe to look at the battery's charger and the jet's auxiliary power.

The yen briefly fell against the dollar on Tuesday after the Bankof Japansurprised markets by adopting an open-ended commitment to buy assets, but later regained ground as the new scheme for additional purchases only comes into effect next year.

Shares of Research In Motion surged to a 13-month high on Mondayafter its chief executive said the company may consider strategic alliances with other companies after the launch of devices powered by RIM's new BlackBerry 10 operating system.

Brent crude rose 0.3 percent to $112.07 a barrel as the BOJ's latest easing action added to the recent positive data from the United States and China, while growing confidence in the strength of China's economic recovery pushed London copper up 0.7 percent to $8,111.75 a metric ton.

Republican leaders in the U.S. House of Representatives have scheduled a vote on Wednesday on a nearly four-month extension of U.S. borrowing capacity, aimed at avoiding a fight over the looming federal debt ceiling and shifting their negotiating leverage for spending cuts to other fiscal deadlines.

Bank of Japan to adopt 2% inflation target

The Bank of Japan on Tuesday formally adopted a 2% inflation target in a major shift in its policy stance, and said it will continue its asset purchases on an "open-ended" basis to further expand its monetary stimulus. At the conclusion of its two-day policy meeting, the central bank said its "price stability target" of 2% year-on-year increase in consumer prices will replace its previous "goal" of a 1% increase in inflation. Under its open-ended asset purchases, the Bank of Japan said it will pursue "aggressive monetary easing" aimed at achieving its 2% price stability target, "through a virtually zero interest rate policy and purchases of financial assets," for as long as the bank judges it appropriate. The decision sent the yen and Japanese stocks on a wild ride: The yen initially fell sharply after the announcement, sending stocks rallying, but the currency soon bounced back sharply as the market digested the details, with shares likewise moving back to losses

Gold and silver bullion are on the move

The price movement of gold and silver often attract much attention. When prices make a noticeable increase, it regularly leads to perma-bulls calling for the next great explosion in precious metals. On the other hand, any dips or corrections lead to critics calling for an end to the 12-year bull market. Both sides are debatable, but there is no denying that physical bullion made impressive moves this past week.

The Bundesbank confirmed reports and announced it will repatriate a portion of its foreign gold reserves. By 2020, the central bank intends to store half of Germany’s gold reserves in its own vaults within the country, compared to only 31% now. The other half will remain in New York and London. The plan will remove 300 tonnes of gold from New York, reducing Germany’s percentage of reserves held at the New York Federal Reserve from 45% to 37%. Another 374 tonnes will be relocated from Paris to Frankfurt, which removes all of Germany’s gold held in France’s capital.

Central banks have shown a great deal of interest in gold over the past few years. For the first-time in decades, central banks across the globe became net buyers of the precious metal in 2009. Last year, central bank purchases increased 17% to 536 metric tons, according to Thomas Reuters GFMS. This represents the biggest addition to gold reserves in 48 years. The organization also expects central banks to add another 280 tons in the first half of 2013.

Silver making moves too…

Gold is not the only precious metal making moves this week. The iShares Silver Trust, which is the biggest exchange-traded fund for silver, added 572 tons of the metal. It is the biggest increase in assets for the BlackRock  managed fund since December 2007. The ETF has received inflows of more than $600 million this week, leading all ETFs in the marketplace. According to Bloomberg and Barclays, global investment through all silver-backed exchange-traded products is at a record 19,114 tons.

Demand in silver coins is also showing strength. The U.S. Mint suspended sales of the new American Silver Eagle. In a statement to authorized purchasers, the Mint explains, “The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process.”

The 2013 American Silver Eagle was initially released on Jan. 7, 2013. On the first day of availability, the Mint received more than 3.9 million orders, the highest one-day of sales in the history of the program. According to the latest information on the Mint’s website, sales have reached about 6 million coins for January and are on pace to surpass the all-time high of 6.1 million coins set in January 2012.

Saudi deports expats for SIM violations

Expats warned against violating SIM card rules

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  Arab News - Expats warned against violating SIM card rules

A committee composed of the Office of the Emir of Madinah, the police, the immigration department and the municipal mayoralty of Madinah has brought charges against expatriates who are selling prepaid phone cards with their iqama (residency permits) numbers inside grocery stores.

"The Committee arrested the expatriates for violating The Communication and Information Technology Commission's (CITC) regulation for overseeing the sale and activation of pre-paid SIM cards by selling prepaid phone cards with their residency ID numbers to the Azizia Police Station in order to complete the investigation," Colonel Fahd Amer Ghannam, the media spokesman for the Police of Madinah, told Al-Eqtisadiah newspaper.
He emphasized that the violations required deportation, even though those arrested have valid residency and work permits, because the violations pose a threat to the country and its citizens.
He called on citizens and residents in the Kingdom to cooperate and make concerted efforts with security forces to report about persons who commit such violations.
Reports published by Al-Eqtisadiah newspaper indicate that, in spite of the CITC’s restrictions, expats succeed in creating illegal ways to obtain prepaid SIM cards.
The black market in pre-paid mobile SIM cards has exploded within peddlers and recruitments companies as soon as the announcement of the new regulation even before its implementation.
The CITC has announced new regulations that state, "No pre-paid SIM cards will be charged, recharged, or balances transferred, unless the subscriber enters his or her identity number."

Real estate prices expected to drop this year

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  Reuters - The increasing real estate prices will decline in 2013.

The increasing real estate prices will decline in 2013, Ayed Al-Qahtani, head of the Real Estate Committee in the Eastern Chamber, told a local newspaper. During a symposium on real estate in Dhahran last week, Al-Qahtani said that real estate prices in some areas of the Kingdom rose during the past four years by 150 percent. The Saudi market overcame all the consequences of the global crisis of 2008. “This gave way to a great confidence in the country’s real estate market,” he said.

The Eastern Province has the highest number of real estate auctions, and the most diverse new products in the sector, despite the obstacles it is facing. “A developer must obtain a so-called Aramco document, before any new land scheme can be approved. That is the biggest obstacle for the sector,” said Al-Qahtani.
The problem of liquidating assets, which distressed real estate contributions, was resolved in 2012 through the direct supervision of the Ministry of Commerce.
“The mortgages finance regulation was approved last year, with its many passages and codes. This is considered to be a strong driver for the real estate market in the Kingdom, with the inclusion of mortgage, leasing finance, executive judiciary and assessment,” said Al-Qahtani.
He said that assessment law is the most difficult of all, and should only be applied with a clear and precise mechanism. He mentioned the US mortgage crisis that led to the collapse of the property sector. He stressed that the establishment of a commission for assessment is a good step forward to implement the law.
For 2013, Al-Qahtani predicted, “Residential units still fall short to cover the demand in the Kingdom. The market here needs more than 300 thousand units, against the 120 thousand units provided by developers annually,” he concluded.

Top 10 Splurge Kings Around The World

When you are a billionaire, you can afford it all. And when you can afford it all, you must buy it all. At least that’s what the men in our list do:

1. Prince Alwaleed bin Talal

The Saudi Arabian billionaire ranks among the biggest spenders of the world. But his possessions are only a small part of what his net worth is. His most ambitious buy: Airbus A380, which costs in excess of $300 million.

2. Joseph Lau

The Hong Kong business magnate doesn’t hold back when it comes to buying gifts for his dear ones or just buying a piece of luxury for himself. His most ambitious buy: Boeing 747-8I VIP – $153 million.

3. Larry Ellison

The CEO of Oracle Corporation splashes out his dollars on the most expensive of yachts, islands, private jets, watches, etc. Nothing is too costly for the man who happens to be the 8th richest person in the world. His most ambitious buy: Hawaiian Paradise - $ 500-600 million.

4. Richard Branson

The Virgin Atlantic boss splurges and splurges in style. He is popular for his flamboyance and he puts to use the same while buying his favourite possessions. His most ambitious buy: Eco Island- $120 million.

5. Brad Pitt

One of the best and most popular actors in the world, Brad Pitt is well-known for his taste. And apart from buying only the best suits and watches for himself, he makes sure the lady in his arms, Angelina Jolie, is not left behind. We don’t know if this is the most expensive thing he has ever bought, but it does deserve a mention in the list. A $390,000 Patek Philippe Minute Repeater as a gift to Angelina Jolie.

6. Donald Trump

He dresses rich, he flies rich, he holidays rich and he lives rich. Donald Trump is not known for curbing his temptations to buy the best for himself. His most ambitious buy: $125 Million Home- The Most Expensive House in America.

7. Roman Abramavich

The billionaire and the owner of the private investment company Millhouse LLC, Roman Abramavich lives life king-size. No matter how enormously he spends, the money in his bank account is always stacking up. His most ambitious buy: Eclipse - $800 million.

8. Jay Leno

The American stand-up comedian is known for spending lavishly. Subtlety has never been an asset to him and his expensive buys have a long list. His most ambitious buy: Mercedes SLR McLaren- $450,000.

9. David Copperfield

The billionaire from America has quite a liking for islands. His most ambitious buy: A $50 million Island located at Bahamas.

10. Paris Hilton

The hotel heiress has always been in news for her lavish lifestyle. Taking out a list of her ambitious buys would mean flooding this page with plethora of big brand names. Let’s straightway get to her most ambitious buy: Diamond studded Bentley GT Continental- $285,000.


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