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May 20, 2012

Manufacturing, Housing Probably Improved: U.S. Economy Preview - Bloomberg

Filed under: Uncategorized, economics — Tags: , , , — Gogo @ 6:28 pm

Manufacturers probably received more orders in April and home sales rose, a sign the U.S. expansion is still on track, economists said before reports this week.

Factory bookings for long-lasting goods rose 0.3 percent last month after falling 3.9 percent in March, according to the median forecasts of 61 economists surveyed by Bloomberg News before a May 24 Commerce Department report. Other figures may show purchases of existing and new houses also climbed.

Manufacturers may keep forging ahead as automakers crank out more cars and trucks, while housing will probably benefit from record-low mortgage rates that are making properties more affordable. Nonetheless, those industries alone will fail to spur a pickup in growth without bigger increases in employment throughout the economy that will propel consumer spending.

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May 17, 2012

Wal-Mart’s first-quarter profit up 10 percent

Filed under: marketing, technology — Tags: , , , — Gogo @ 8:12 am

Wal-Mart Stores Inc. is reporting a 10.1 percent increase in first-quarter profit as the world’s largest retailer’s re-emphasis on low prices continues to woo back bargain-hungry shoppers in an uncertain economy.

Wal-Mart says that it earned $3.74 billion, or $1.09 per share, in the quarter ended April 30. That compares with $3.39 billion, or 97 cents per share, in the year-ago period.

Net sales excluding membership fees from Sam’s Club rose 8.6 percent to $112.2 billion.

Analysts had expected $1 guaranteed online personal loans.04 per share on net sales of $110.5 billion.

Revenue at stores opened at least a year rose 2.6 percent at its Wal-Mart’s namesake U.S. division. That’s above the 1.4 percent estimate from Wall Street.

The company is offering an upbeat profit outlook for the current quarter.

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May 15, 2012

JPMorgan’s Dimon to face shareholders in Florida

Filed under: marketing, news — Tags: , , , — Gogo @ 7:32 pm

JPMorgan Chase CEO Jamie Dimon is facing shareholders five days after disclosing a $2 billion trading loss.

Dimon will speak Tuesday morning at the bank’s annual meeting in Tampa, Fla.

Shareholders will vote on whether to separate the bank’s chairman and CEO positions, both held by Dimon. They will also vote their approval or disapproval of Dimon’s $23 million pay package from last year.

Analysts say Dimon is unlikely to lose those votes.

Investors have pummeled JPMorgan’s stock price since Dimon disclosed the trading loss on Thursday. The stock has dropped 12 percent and lost almost $20 billion in market value.

Dimon got something of a vote of confidence from President Barack Obama, who appeared on ABC’s “The View” for an episode to be aired Tuesday. Obama used the appearance to press for tighter regulation of Wall Street.

“JPMorgan is one of the best-managed banks there is,” the president said. “Jamie Dimon, the head of it, is one of the smartest bankers we got, and they still lost $2 billion and counting.”

Obama said the bank was “making bets” in the market for the complex financial instruments known as derivatives. Dimon has said the bank was hedging against financial risk.

A part of the 2010 financial overhaul known as the Volcker rule would restrict banks from some trading for their own profit. Dimon and critics of the financial industry have disagreed over whether the trading in question would violate that rule.

Dimon is likely to repeat his acceptance of responsibility for the bad trade. He said in a TV interview Sunday that he was “dead wrong” when he dismissed concerns about the bank’s trading last month.

“We made a terrible, egregious mistake,” Dimon told NBC’s “Meet the Press.” “There’s almost no excuse for it.”

On Monday, Ina Drew, the bank’s chief investment officer and one of the highest-ranking women on Wall Street, left the bank. Drew oversaw the trading group responsible for the $2 billion loss.

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May 12, 2012

EverBank debuts Brentwood-based wealth management company

Filed under: Finance, legal — Tags: , , , — Gogo @ 1:44 pm

EverBank is branching out with a new wealth management company based in Brentwood that is targeting affluent customers.

EverBank Financial Corp., a Jacksonville, Fla.-based financial services firm, formed the wealth management subsidiary to provide wealthy customers looking for institutional-caliber investment advice.

“We see that as lacking in the market,” EverBank Wealth Management’s CEO Frank Trotter said in an interview.

Launched Monday, EverBank Wealth Management Inc. joins many other financial institutions that are seeking to grow revenue by broadening investment services for the wealthy.

EverBank’s wealth management subsidiary is based at 8300 Eager Road, where the bank’s World Markets division and some other bank operations are based. Some wealth management executives are based here, including Trotter, and some are based in Jacksonville.

Locally, EverBank employs about 150 people in Brentwood, which will grow as the wealth management business expands, Trotter said.

Companywide, EverBank has 575,000 customers nationwide and $10.3 billion in assets as of the end of 2011. The wealth management company formation came the same week EverBank launched an initial public offering of its stock.

Trotter, a longtime St. Louis banker, formed EverBank as an Internet-based bank in 1999. In 2002, EverBank was acquired by Alliance Capital Partners, a holding company based in Jacksonville, which later changed its name to EverBank Financial.

Through its World Markets division in Brentwood, EverBank offers investments in foreign currencies and in precious metals.

EverBank already works with more than 200 broker-dealer and investment advisory firms nationwide, matching customers with advisors through its Advisor Services unit, which is also based in Brentwood.

But the bank lacked its own in-house advisory services after EverBank sold in 2002 its investment advisory business, Acropolis Investment Management, which is based locally.

“People have always asked: can’t you just manage my money for me,” Trotter said.

“We wanted to get back into it,”he said of EverBanks’ return to offering investment advice.

David Conover, EverBank Wealth Management’s president and chief operating officer, said the concentration of investment advisors in the St. Louis area — which is home to a mass of financial services firms including Wells Fargo Advisors and Edward Jones — will help in recruitment efforts for the subsidiary.

“There’s a concentration of talent in St. Louis and economies of scale” with EverBank’s existing operations, Conover said.

EverBank’s push into wealth management comes as other banks, including U.S. Bank, Commerce Bank, and Enterprise Bank & Trust, have added new services or added staff to increase their wealth management offerings as the population of high net worth individuals, or those with at least $1 million in invest-able assets, continues to grow.

Trotter said EverBank Wealth Management’s strategy is to offer a simple fee structure based on a customers’ assets and to put an emphasis on listening to customers.

“We’ve observed over the years that some brokers say ‘this is the way I do it,’” Trotter said. “We want to listen to the client and hear the way they approach investing and how they feel about the economic situation – we want to have a conversation with them and I feel that’s radically different than what’s available.”

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May 10, 2012

Spain Stakes Credibility on Fourth Bank Cleanup in Three Years - Bloomberg

Filed under: economics, term — Tags: , , , — Gogo @ 8:24 pm

Spain will make a fourth attempt to convince investors its banking system is solid after failing to do so with three prior tries in as many years.

April 30, 2012

Moderate Islamist gains in presidential race

Filed under: Loans, news — Tags: , , , — Gogo @ 6:52 pm

A moderate Islamist campaigning to be Egypt’s next president has won the support of some unlikely allies _ the country’s most conservative religious groups, including former militant jihadists.

Their backing reflects the growing mistrust by many Islamists of the powerful Muslim Brotherhood, the would-be flagbearer for the religious vote. And it has made Abdel-Moneim Abolfotoh a front-runner with an unusual coalition that includes secular liberals and even some Christians along with hard-line Islamists.

“He (Abolfotoh) will be a president for all Egyptians,” Wael Ghonim, an icon of the youthful revolutionaries behind the uprising that toppled Hosni Mubarak last year, wrote on his Twitter account Monday.

“He will bring us together, not divide us.”

Before he was thrown out last year, Abolfotoh was a senior leader of the Muslim Brotherhood _ now Egypt’s most powerful political force. He earned the reputation as a moderate reformer within the Islamic fundamentalist group.

But the bearded, 60-year-old former dissident eventually fell out with the group after publicly slamming it for not being transparent about its financing and irking his fellow Brothers by saying he would rather have a good Christian than a bad Muslim as president _ contradicting the movement’s line that majority Muslim Egypt should not be ruled by a Christian.

Now he is one of the few candidates with crossover appeal for both religious conservatives and liberals.

The endorsements and other key developments over recent days dramatically shifted the fortunes of Abolfotoh from a promising underdog to a real contender. The biggest change came when the election commission disqualified three strong candidates _ Hosni Mubarak’s former spy chief and vice president, Omar Suleiman, the Brotherhood’s first choice candidate Khairat el-Shater and ultraconservative lawyer-turned-preacher Hazem Salah Abu Ismail.

Abolfotoh’s newfound support comes from the ultraconservative Islamists known as Salafis. They adhere to an interpretation of Islam partly inspired by Saudi Arabia’s puritanical Wahhabi doctrine and want to see Islamic law strictly applied in Egypt.

Their backing eats into the chances of Mohammed Morsi, the second choice candidate of the Muslim Brotherhood, which won just under half of all seats in parliamentary elections around the start of this year. Abolfotoh’s growing strength also provides Amr Moussa, Mubarak’s longtime foreign minister and a front-runner himself, with a formidable competitor for the land’s highest office.

“Our top priority was: Who has the biggest chance to win? And we found that Abolfotoh has that chance,” said Sheik Abdel-Akhar Hamad, a top leader of the Gamaa Islamiya, the jihadist group that endorsed Abolfotoh on Monday.

The group was partially motivated by its fear of the Brotherhood’s “desire to monopolize power,” Hamad said.

In many ways, the May 23-24 presidential election will answer the persistent question of whether the popular uprising that toppled Mubarak has actually transformed Egypt from autocratic rule to a functioning democracy or whether it just removed the head, Mubarak, but left the regime intact, as many of the liberal youth groups claim.

That someone like Abolfotoh has a realistic shot at being president also speaks to the stunningly swift empowerment of Islamists in post-Mubarak Egypt and their emergence as a the nation’s most powerful group after years of persecution. The candidate was imprisoned multiple times under the Mubarak regime, once for five years Payday Loan for Bad Credit.

Abolfotoh, according to an opinion poll conducted by the state-funded Al-Ahram Center for Political and Strategic Studies, has the support of 27 percent of voters, well behind Moussa who has 41 percent. The poll surveyed 1,200 participants in most of Egypt’s 28 provinces and has a 3 percent margin of error. It was conducted in mid-April.

The poll indicates Abolfotoh is likely to face Moussa in a June 16-17 runoff. The winner will be announced June 21, the last stop in a bumpy transitional process led by the generals who took over from Mubarak last year and promised to step down by July 1.

Official campaigning kicked off Monday.

Abolfotoh has been cagey about the state of his relations with the Brotherhood, leaving the exact nature of current ties to the group ambiguous.

That may be motivated in part by his hopes of wooing the votes of young Brotherhood members who are at odds with the group’s leaders over policy, particularly the reversal of initial insistence that they would not field a presidential candidate.

However, his views on core Islamic issues set him apart from the fundamentalist Brotherhood on questions such as the role of women and Christians in mainly Muslim Egypt and whether there is a need to implement Islamic Shariah laws, such as forcing women to respect a strict Islamic dress code in public.

“The greatest thing in Shariah is freedom and justice,” Abolfotoh told a television interviewer recently. “Some people think that you can force people to pray or punish them for not praying. Forcing people against their individual rights create a hypocrite person. When women wear hijab (Islamic headscarf) because they fear punishment, this is religious hypocrisy.”

Such moderate views raise the question of what Abolfotoh offered in return for the endorsements he received.

For example, the Gamaa Islamiya took part in the planning and execution of President Anwar Sadat’s 1981 assassination and fought a low intensity insurgency against Mubarak’s regime for the rest of the 1980s and most of the 1990s to create a purist Islamic state.

The Gamaa’s nod to Abolfotoh followed a more important endorsement over the weekend from a group that is just as radical _ the ultraconservative Dawa Salafiya and its political arm Al-Nour party, which leads a bloc that controls nearly 20 percent of parliament’s seats. Al-Nour, like the Gamaa, advocates the implementation of a strict interpretation of Shariah laws that many view as unfair to women, minority Christians and secularists.

“We felt that it is too much for the Muslim Brotherhood to have it all: parliament with its two chambers, the presidency and the Cabinet,” senior Gamaa official Assem Abdel-Maged said. “This is harmful to the whole Islamist movement.”

Yasser Bourhami, an influential ultraconservative cleric from the Dawa Salafia, said Abolfotoh pledged to the group that, if elected, he would allow the Islamist bloc in parliament, the chamber’s largest, form the government and allow the Salafis a free rein to preach in mosques and religious schools.

“He (Abolfotoh) is the most accepted by the people. He is the most balanced,” he said in videotaped comments posted on social networks. “This is what we think is the best for this phase.”

Source

April 29, 2012

Dubai spends $250M to get full control of Atlantis

Filed under: Finance, money — Tags: , , , — Gogo @ 11:04 am

Dubai says it now has full control of the Atlantis resort hotel perched atop its palm-shaped island.

State-run investment firm Istithmar World said late Friday it paid $250 million to buy out financially troubled business partner Kerzner International Holdings Ltd., which had held a 50 percent stake in the coral-colored hotel. Istithmar already owned half of the property.

Kerzner will continue to operate the resort, which includes a waterpark and 18 restaurants, Istithmar said.

It agreed to give up its stake in the Dubai property and a similar resort in the Bahamas after struggling to restructure $2.6 billion in debt. Canada’s Brookfield Asset Management acquired the Bahamas property in a previously announced deal by agreeing to waive $175 million in debt owed by Kerzner.

Kerzner said it plans to use proceeds from the Dubai sale to reduce its debt load.

Istithmar is part of Dubai state conglomerate Dubai World, which has struggled with high-profile debt troubles of its own. It owns upscale retailer Barneys New York and has a stake in performance company Cirque du Soleil.

“This acquisition is in line with our strategy of managing our assets for value and investing selectively where growth opportunities exist,” Dubai World’s chairman, Sheik Ahmed bin Saeed Al Maktoum, said in a statement cheapest personal loan rates.

Istithmar’s parent Dubai World was at the heart of Dubai’s financial meltdown in 2009. It signed an agreement to restructure some $25 billion in debt last March.

The Atlantis is one of Dubai’s better-known tourist destinations. It is a mainstay of city tours, vying for attention with the world’s tallest tower, Burj Khalifa, and more traditional offerings such as the old gold and spice markets. Ads for the hotel greet Dubai airport passengers on arrival.

Atlantis opened for business in September 2008, shortly after a construction fire damaged part of the brightly painted lobby.

A lavish coming-out party for the resort two months later cost $20 million and featured a celebrity guest list that included Robert DeNiro and Lindsay Lohan. Australian pop star Kylie Minogue provided the entertainment.

The 1,537-room hotel is at the top of the Palm Jumeirah, the first of Dubai’s palm-shaped manmade islands and the only one that is developed. Visitors arrive by monorail or by traveling through an underwater tunnel.

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April 25, 2012

Montoro Says Spain Missing Budget Goals Would Hurt Europe - Bloomberg

Filed under: Mortgage, online — Tags: , , , — Gogo @ 9:56 pm

Budget Minister Cristobal Montoro said Spain would damage European and global growth if it misses budget-deficit targets and threatened to take over the accounts of regions that don

April 16, 2012

US homebuilder outlook dips below 4-year high

Filed under: Loans, news — Tags: , , , — Gogo @ 10:24 am

The outlook among U.S. homebuilders dimmed in April after six months of rising or steady confidence. The decline suggests the housing market remains weak despite modest gains.

The National Association of Home Builders/Wells Fargo said Monday that its builder sentiment index fell this month to 25 from 28. Last month’s reading was the highest since June 2007. The index rose for five straight months between September and February.

Builders expressed weaker confidence in sales over the next six months. A separate gauge measuring that outlook rose for six straight months before falling this month, from 35 to 32.

The housing industry has a long way to go in its slow recovery. Any reading below 50 indicates negative sentiment about the housing market. The index hasn’t reached hit that level since April 2006, the peak of the housing boom.

“What we’re seeing is essentially a pause in what had been a fairly rapid build-up in builder confidence that started last September,” said David Crowe, chief economist with the homebuilders’ group. “This is partly because interest expressed by buyers in the past few months has yet to translate into expected sales activity.”

The spring buying season got an early start thanks to a mild January and February, which made up the best winter for sales of previously occupied homes in five years. Permits to build houses and apartments rose in February to their highest level since 2008.

Yet home prices continued to fall this winter. Builders keep slashing their prices to stay competitive. Last year was the worst for new-home sales on records dating back to 1963.

Builders are struggling to compete with foreclosures, which have forced down prices of previously occupied homes. And many people are finding it hard to qualify for loans or meet higher required down payments.

Low appraisals are scuttling some deals after contracts have been signed. As a result, some people who want to buy a new house are holding off because they can’t sell their home.

Those in a position to buy are benefiting from lower prices and the cheapest mortgage rates on record. The average rate on the 30-year fixed mortgage is hovering near record lows below 4 percent.

Builders have pointed to some regional pockets of strength. New Orleans, Pittsburgh and other smaller areas of Texas, in particular, have reported increased buying.

Source

April 9, 2012

Oil prices fall on economic concerns

Filed under: economics, term — Tags: , , , — Gogo @ 4:04 pm

Concerns about the economy pushed oil prices lower on Monday.

West Texas Intermediate, the U.S. benchmark crude, gave up 85 cents to end at $102.46 per barrel. Brent crude, which is used to price oil imported by U.S. refineries, fell by 76 cents to finish at $122.67 per barrel.

The U.S. economy added just 120,000 jobs in March _ half as much as each of the previous three months. The government reported the disappointing data on Friday, but Monday was the first day oil markets could react. Stocks also fell.

Analysts said the slower pace of hiring could be a symptom of a weakening economy. It also hints at a slowdown in gasoline usage.

Iran also weighed on oil markets. OPEC’s No. 2 oil producer agreed to hold talks about its nuclear program with the West starting Friday. That eased fears of a prolonged standoff that could further squeeze world oil supplies. Already, international sanctions have forced some of the biggest importers of Iranian oil to find other sources.

Renewed negotiations could lead to an agreement that lifts those sanctions. The talks also reduce the risk, for now, that Iran will try to choke off exports from other oil producers by closing shipping routes out of the Persian Gulf guaranteed approval cash loans.

Concerns about a prolonged standoff with Iran have added about $13 to $14 to the price of a barrel of oil, independent analyst Jim Ritterbusch said. Oil should fall further if Iran works with the West, although Ritterbusch expects the price to remain elevated “for months to come.”

“As long as the regime stays in place, the nuclear threat is always going to be there,” he said.

In the U.S., gasoline prices fell by about a penny over the weekend to $3.927 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Pump prices have eased after nearing $3.94 a gallon last week.

Experts still say that prices could peak this month between $4.25 and $4.35 per gallon.

In other energy trading, heating oil fell by 2.33 cents to $3.1459 per gallon while gasoline futures fell by 4.38 cents to finish at $3.2967 per gallon. Natural gas added 1.8 cents to end at $2.107 per 1,000 cubic feet.

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