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Jan 22, 2010

CNBC: Evening Brief, January 22,2010




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MarketWatch:Top stories of the week 18-22

MarketWatch
Weekly Roundup
JANUARY 22, 2010

MarketWatch's top stories of the week

By MarketWatch

Well, there went the year's gains, lost in a maelstrom of selling linked to worries that the global economic engine known as China was about to reach for the brake handle. Investors appear to have decided that the economic rebound -- which looked like it was well underway, and drove big stock gains last year - was not as strong or as certain as they once believed. They have also been disappointed in how earnings season is going, let down by a reality of stagnant revenue growth and poor profit gains that contrasts with high expectations.

Investors also had to contend with the sudden shift of political power in Washington and try to figure out what that might mean for stocks and other markets. Would President Barack Obama's plans for reforming financial regulation hurt banks? Would the Democratic Party's unexpected loss of a seat in the U.S. Senate derail Obama's domestic agenda? What about Federal Reserve Chairman Ben Bernanke's chances for approval by the Senate?

There were so many things for investors to be unsure about this week. Their reaction? Sell.

The Dow Jones Industrial Average (.DJI) closed down 217 points at 10,173 on Friday, a loss of 2.09%. For the week the blue chip index fell 4.1%. The Nasdaq Composite Index (.COMP) lost 60 points or 2.67% on the day to close at 2,205. The technology bellwether index dropped 3.6% for the week. The benchmark Standard & Poor's 500 Index (.SPX) fell 25 points or 2.21% to close at 1,092 on Friday and notched a loss of 3.9% for the week.

Look to MarketWatch over the weekend when you need news and information about the world and the markets. Our weekend features include a look at why it makes sense to pick mutual funds that have recently underperformed and an examination of whether a new health care bill can slow the rise in medical costs in the United States. We'll also have a story that looks ahead to the start of the annual World Economic Forum in Davos.

Meanwhile, please have a look at our weekly preview videos:

 Europe's Week Ahead: World Economic Forum, Nokia

 Asia's Week Ahead: Data and Results in Focus

-- Christopher Noble , assistant managing editor

Upset in the Bay State

In a stunning victory that complicates President Barack Obama's proposed overhaul of the U.S. health-care system, Republican Scott Brown won Tuesday's special Senate election in Massachusetts, defeating the state's Attorney General Martha Coakley to win the seat held by liberal icon Edward Kennedy for nearly 50 years. The win by Brown, a previously obscure state senator, ends the Democrats' 60-seat supermajority in the Senate and spells trouble for easy passage of a health-care bill. Read more about the Massachusetts special election .

Limits on big banks

In his toughest response yet to the financial crisis, Obama proposed Thursday that strict limits be imposed on the size and trading activities of the nation's biggest banks. The proposal aims to deter commercial banks from becoming so large that they put the broader economy at risk and distort normal competitive forces. The president endorsed some recommendations by former Federal Reserve Chairman Paul Volcker, but didn't go as far as Volcker's urgings to break up the banks. Read more about Obama's bank proposal .

How Wall Street lost a bundle

Traders rarely miss an opportunity, but they did last year. Back in March, newly minted President Obama warned Wall Street not to block new regulations. By now, it's clear that Wall Street heard the message, but wasn't heeding it. Risk-taking went unabated for much of the year. Now, Wall Street is in the process of paying out $145 billion in bonuses, 18% more than was paid in 2008. They bet against Obama -- and now they're paying the price. Read David Weidner's commentary .

Striking gold at Goldman

Goldman Sachs (GS) swung to a fourth-quarter profit that topped analyst estimates as lower-than-expected compensation levels boosted the bottom line, while performance at its various businesses was mostly in line with expectations. The Wall Street firm, which has faced public anger over recording big profits after accepting bailout funds, said total compensation and benefits have decreased by 20% since 2007. Read more about Goldman's results .

Conan cuts ties to NBC

Late-night talk-show host Conan O'Brien signed a deal to leave NBC, the network confirmed, after refusing to make room for Jay Leno's return to the 11:35 p.m. time slot. Leno, whose failed prime-time television show was put out of its misery last week, will return as host of "The Tonight Show," a role he filled for 17 years beginning in 1992. Read more about O'Brien's deal to leave NBC .

Growth worries at Google

Shares of Google slipped late in the week as investors reacted to the Internet giant's fourth-quarter financial results, which gave some cause for concern about the company's growth prospects. Although its earnings generally fell in line with Wall Street estimates, they didn't quite outperform higher "whisper" numbers. Read more about reaction to Google's report .

Paying up for NYTimes.com

New York Times' (NYT) move to introduce an online pay model seems like a reasonable measure to cope with deteriorating advertising revenue, but it's unlikely that many newspapers across the country will be in a position to follow suit right away, experts said. Pressured by steep print-ad losses as more consumers get their news and information via the Internet, the company said NYTimes.com, its flagship newspaper's Web site, will move to a paid model at the beginning of 2011. Read more about plans for NYTimes.com .

A sweet deal

After months of wrangling, Kraft Foods (KFT) lifted its offer for Cadbury PLC (CBY)(UK:CBRY) to around 11.9 billion pounds ($19.5 billion) in a bid that won approval from its British target. The agreement follows a four-month war of words between the companies' executives. The acquisition of the 186-year-old Cadbury will make Kraft the world's biggest chocolate and confectionery producer by revenue and the No. 2 gum producer behind privately-held Mars Inc. Read more about Kraft's deal for Cadbury .

Rehab for Japan Airlines

Japan Airlines Corp. filed for court-led rehabilitation, the Japanese equivalent of a Chapter 11 bankruptcy, which will allow the carrier to operate as it undergoes restructuring. The Tokyo-based carrier, Asia's second largest in terms of annual customers and destinations, is also at the center of showdown between U.S. carriers Delta Air Lines (DAL) and American Airlines (AMR), rivals that both want tighter relations to better tap into fast-growing markets on the continent. Read more about the troubles at JAL .

Another tough year for builders

The International Builders' Show went on this week without its signature exhibit: The New American Home, which for years has served as a showcase for some of the latest trends in building, design and home products. The private lender financing the project ran into credit problems and had to withdraw funding, according to the show's Web site. It's a fitting development and a familiar story for an industry that has been so battered during this housing downturn. Read more about the builders' show .

From the Desk of Nick Nicolaas: Mining in Europe







From the Desk of Nick Nicolaas (FDNN) #83
January 22, 2010
MINING IN EUROPE
a publication of
E U R O P E A N   G O L D   C E N T R E
Once again here's Henk with ‘Mining in Europe'
Dear Reader:
In this issue, you will find:
*** my EDITORIAL COMMENT, in which I elaborate on how the attitude in European countries is getting more positive towards mining and exploration activities...
*** the introduction of a NEW SUPPORTING COMPANY which is developing a high-grade (and I really mean high-grade here!) uranium project in SLOVAKIA. Read about how this company is progressing with its Pre-Feasibility Study and beyond that on the way to achieve its objective, to become a solid uranium producer...
*** interesting company developments in the HIGHLIGHTED CORPORATE NEWS section...
*** the FEATURED ARTICLE with the second part of the article on how the European Commission would like to see natural resources to be taken seriously...
*** three worthwhile MINING INVESTMENT EVENTS IN EUROPE where you can obtain specific information, meet the experts and managements and expand your networking...
*** remarkable NEWS on new exploration companies coming to Europe to respectively develop a possible tin mine in SPAIN and start exploration for gold in SWITZERLAND, yes you are reading it right, SWITZERLAND.
I hope you find it as fascinating to read about these subjects as I found it fascinating to write about them. Your feedback is invited. Happy reading!
Best regards,
Henk J. Krasenberg.


As always - - Stay Tuned,
Nick L. Nicolaas
Mining Interactive "Ahead of the Pack"
Skype: nicknicolaas


MiningInteractive Videos

Stay tuned for the most recent updates on leading junior exploration companies through the MiningInteractive Video & Radio Interviews.
Nick L. Nicolaas
(604) 657-4058
nick@mininginteractive.com
OR Tom Corcoran
(604) 569-0800 (office)
tomc@mininginteractive.com

Gerald Celente: Banks Gambling with Taxpayers Money

NYTimes.com: DealBook: Warren Buffett's Lost Vote



The New York Times E-mail This


This page was sent to you by:  fgcbolsa@fgcbolsa.info

BUSINESS   | January 21, 2010
DealBook: Warren Buffett's Lost Vote
By STEVEN M. DAVIDOFF
Warren E. Buffett may have expressed ire over not being able to vote down Kraft's new takeover bid for Cadbury, but the Deal Professor shows that companies can easily organize their acquisitions to make sure their shareholders never get that chance.







IRS Announces Qualified Disaster Treatment for Haiti




Issue Number:    IR-2010-011

Inside This Issue


IRS Announces Qualified Disaster Treatment for Haiti 
Washington — The Internal Revenue Service today issued guidance that designates the earthquake in Haiti in January 2010 as a qualified disaster for federal tax purposes. The guidance allows recipients of qualified disaster relief payments to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist victims in areas affected by the January 2010 earthquake in Haiti without affecting their tax-exempt status.
Charities usually fall into one of two categories — public charities or private foundations. Under the tax law, a private foundation that is employer-sponsored may make qualified disaster relief payments to employees affected by a qualified disaster. These payments generally include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be included in the individual recipient’s gross income.
Qualified disasters include Presidentially declared disasters and any other event that the Secretary of the Treasury determines to be catastrophic. The IRS has determined that the earthquake in Haiti that occurred this month is an event of catastrophic nature for purposes of the federal tax law.
The IRS will presume that qualified disaster relief payments made by a private foundation to employees and their family members in areas affected by the earthquake in Haiti to be consistent with the foundation's charitable purposes.
 
 
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FDIC and Bank of England Announce Enhanced Cooperation in Resolving Troubled Cross-border Financial Institutions


Press Release
FDIC and Bank of England Announce Enhanced Cooperation in Resolving Troubled Cross-border Financial Institutions


FOR IMMEDIATE RELEASE
January 22, 2010
Media Contact:
Andrew Gray: (202) 898-7192
E-mail: angray@fdic.gov

The Federal Deposit Insurance Corporation (FDIC) and the Bank of England today announced their agreement to a memorandum of understanding (MOU) expanding their cooperation when they act as resolution authorities in resolving troubled deposit-taking financial institutions with activities in the United States and United Kingdom. The MOU was signed by FDIC Chairman Sheila Bair and Bank of England Governor Mervyn King.
The MOU represents a commitment by the FDIC and Bank of England to enhance their collaboration to promote greater coordination in the face of distress at banks that operate in the two countries and thus protect the wider public interest. It recognizes the importance of close and effective communication about the operations of financial institutions covered by the MOU and differing national laws, consultation on developing issues, cooperative contingency planning for firms covered by the MOU, and supporting the development of appropriate recovery (going concern) and resolution (gone concern) plans. In such areas, the MOU also underlines the need for the FDIC and the Bank to work closely together with other authorities in the United States and the United Kingdom.
Most importantly, the MOU represents a commitment to cooperate in the resolution of cross-border firms in compliance with the laws and regulations of the United States and the United Kingdom.
Bank of England Governor King and Chairman Bair agreed that this MOU is an important step towards improved coordination.
FDIC Chairman Bair said, "The recent financial crisis demonstrates that greater international coordination among resolution authorities as well as resolution processes capable of resolving the largest, most complex financial institutions are necessary to protect the public. This MOU is an invaluable step forward toward implementing the recommendations of the Basel Committee's Cross Border Resolution Group, which the FDIC co-chaired. It is also a further step in support of the continuing work of the Financial Stability Board's Crisis Management Working Group, chaired by Paul Tucker of the Bank of England."
Bank of England Governor King said, "A key legislative response in the United Kingdom to the recent financial crisis has been the adoption of a special resolution regime that enables failed UK banks to be resolved in the public interest. The Bank of England has in consequence become a resolution authority in the United Kingdom and, as such, it makes good sense to develop close relationships with other resolution authorities so that the toolkit and powers now available to us can be applied effectively to large and complex cross-border banks. The MOU should also help to enhance coordination with other regulatory authorities in the United States and United Kingdom."
Attachment:
Memorandum of Understanding - PDF (PDF Help)

Forbes . com : Daily Opinions, January 22, 2010



Latest Stories

Japan In Jeopardy

Gordon G. Chang
Nothing seems to be going the country's way at the moment.
More by Gordon G. Chang Read More

A New Era For Ukraine

Melik Kaylan
Why a pro-Russia president would be a game changer.
More by Melik Kaylan Read More

Givers And Misers

Claudia Rosett
Haiti relief effort brings out the best and worst of the ''international community.''
More by Claudia Rosett Read More

Triumph Of The Tea Party

Peter Robinson
Don't thank Republicans, business leaders or the media for saving the U.S.
More by Peter Robinson Read More

One Year Of Obama

Bruce Bartlett
Do I regret voting for him?
More by Bruce Bartlett Read More

Obama The Destroyer

Brett Joshpe
The president's latest proposal will lose taxpayers billions of dollars.
More by Brett Joshpe Read More

Save The Glossies

Raquel Laneri
Fashion magazines should go up market, not down.
More by Raquel Laneri Read More

Get Vaccinated

Robert Nelson
Vaccine paranoia might be killing us.
More by Robert Nelson Read More

Are Class Actions Unconstitutional?

Daniel Fisher
This Northwestern prof is no conservative, but he thinks the left wing's favorite legal tool is unconstitutional.
More by Daniel Fisher Read More

Fed Should Go Back to Basics

David Malpass
The Fed needs a narrower mandate.
More by David Malpass Read More

You Couldn't Make This Up

Steve Forbes
Phil Angelides is a curious choice to lead such a seemingly important body as the FCIC.
More by Steve Forbes Read More

Bullish on America

Steve Forbes
''It's Not as Bad as You Think: Why Capitalism Trumps Fear and the Economy Will Thrive''--by Brian S. Wesbury (John Wiley & Sons, $24.95).
More by Steve Forbes Read More

''Too Big to Fail'' Fails

Steve Forbes
the Obama Administration wants to impose a big, new tax on the nation's largest financial institutions, particularly investment banks such as Goldman Sachs.
More by Steve Forbes Read More

Posturing

Steve Forbes
The Financial Crisis Inquiry Commission garnered lots of headlines in January.
More by Steve Forbes Read More

Prospects for Junk Bonds in 2010

William Baldwin
Are junk bonds a buy?
More by William Baldwin Read More
For more stories, visit us at www.forbes.com/opinions

Mineweb : Daily Headlines , January 22, 2010




Welcome to Mineweb's free daily newsletter. Mineweb is the world's top mining and mining investment news website and is read in some 200 countries daily by mining company executives, financiers and investors.  To keep abreast of news throughout the day we suggest you do check our homepage for updates - www.mineweb.com.  
Follow mining news updates on Twitter http://twitter.com/Mineweb:

TOP STORIES > Friday , 22 Jan 2010                                                     

Freeport's Adkerson says outlook encouraging for copper this year

Friday , 22 Jan 2010
While Freeport-McMoRan Copper & Gold top management remains cautious about major project spending, Arizona's Miami mine and Morenci mill are both being restarted.

R&E, JCI, in dramatic R1bn settlement

Thursday , 21 Jan 2010
Randgold & Exploration set to relist as mining explorer; JCI to focus on Boschendal.

BHP considering reviving major investments into Chile

Friday , 22 Jan 2010
The projects that were frozen during the worst of the global financial crisis are however still awaiting final approval

After the big contraction OZ Minerals looks to Cambodia for expansion

Thursday , 21 Jan 2010
The dramatically re-shaped Australian miner OZ Minerals came through a prime production period - the December quarter - with a healthy performance from its ramped-up Prominent Hill copper-gold mine in South Australia.

Canadian Supreme Court gives Imperial Metals the all clear for Red Chris

Friday , 22 Jan 2010
Despite no full federal environmental assessment ever being carried out, the Supreme Court has allowed the copper and gold project to go ahead but it has made it clear that it was an exception

Ahafo mine cyanide spill prompts NGOs to question Intl. Cyanide Code validity

Friday , 22 Jan 2010
Newmont Mining said an Ahafo Mine cyanide spill caused no residual impact to the environment or the health of local residents. Environmental NGOs say the accident and its aftermath are cause for concern.

RUSAL's Hong Kong IPO raises $2.4bn

Friday , 22 Jan 2010
Sources say the IPO of the world's largest aluminium producer was priced at the middle of an indicated range

Amur has submitted mining licence request for Russian project

Friday , 22 Jan 2010
The London-listed miner has applied to the Russian government for its flagship nickel and copper project, Kun Manie

Yesterday's Top Story: Platinum merger deal talk focuses on Northam

Wednesday , 20 Jan 2010
Once again, speculation is mounting over potential corporate deals in the resurgent PGM mining subsector.

CONFERENCES >





Vancouver Resource Investment Conference, Vancouver, BC, Canada. January 17-18. Cambridge House International’s 2- day investment conference at which Mineweb will be exhibiting in conjunction with Infomine.
Mineral Exploration Roundup 2010, Vancouver, Canada – January 18-21. Canada’s west coast equivalent of the PDAC for mineral exploration and investment. Mineweb will be attending.
2010 Mining Indaba, Cape Town, South Africa. February 1st to 4th. Most important annual mining investment event on the African continent. Mineweb is a media partner and also will be exhibiting.



ENGINE ROOM

Lawrie Williams, London
Dorothy Kosich, Reno
Geoff Candy, Groningen

Barry Sergeant, Johannesburg
Ross Louthean, Perth
John Chombah, Botswana
Jan Chadwick, International Sales and Marketing


Alec Hogg
- Editor in Chief

Money Morning:China Outrunning the Global Recovery and Still Looking Ahead


January 22, 2010
How to Empower Shareholders and Improve Corporate Management in Two Easy Steps

By Martin Hutchinson, Contributing Editor, Money Morning


I wrote last week that Wall Street bonuses should be cut back by the shareholders, not by the government.

Well, a reader wrote back correctly to remind me that the majority of shareholders are institutions that would not want to antagonize major corporations that gave out fund management mandates for their pension funds and 401(k)s by agitating against top management bonuses.

Good point. Very good point. And it highlights a central flaw in today's capitalism. It's far too controlled by corporate management. And it's time something was done about it.

Let me explain...


Hutchinson on...
- Why Gold Beats the Market Manipulators

- Shareholders - Not Obama - Should Be Curbing Wall Street Bonuses


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There's a new "legal tender" in America. Unlike the regular U.S. paper dollar, the new Treasury-approved "Gold Dollar" is backed by gleaming bars of 24-karat gold. That means every time geopolitical disaster strikes, your gold-backed savings could spike in value" Every time the paper dollar goes down, your savings soars" Every time gold rises, your cash pile grows" automatically.

Considering where gold's likely headed, just holding some of your savings in the new money could double your cash over the next 6-9 months. And this special report shows you how" for free.

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Goldman's Earnings Call Overshadowed by Obama's Glass-Steagall Revival

By Don Miller, Associate Editor, Money Morning

Goldman Sachs Group Inc. (NYSE: GS) yesterday (Thursday) reported blowout fourth-quarter earnings after dramatically reducing compensation. However, that earnings call was overshadowed by U.S. President Barack Obama's announcement that he will effectively restore some provisions of the Depression-era Glass-Steagall Act.

Obama's plan would prohibit banks from running proprietary trading operations solely for their own profit and sponsoring hedge funds and private equity funds. It also proposes expanding a 10% market-share cap on deposits to include other liabilities such as non-deposit funding to restrict growth and consolidation.

"While the financial system is far stronger today than it was one year ago, it's still operating under the same rules that led to its near collapse," Obama said at the White House. "Never again will the American taxpayer be held hostage by a bank that is too big to fail."

However, many analysts believe the new regulations will have an adverse effect.

Read full article...



China Outrunning the Global Recovery and Still Looking Ahead

By Jason Simpkins, Managing Editor, Money Morning

Many investors are focusing on China's recent moves to curtail lending and cool its economic growth, but in doing so they're forgetting that the Chinese economy has withstood the financial crisis better than any other economy in the world. And it remains investors' best bet.

"When the financial crisis forced the neoliberal economic system into a dead end, the shortcomings of the capitalist system were exposed for all to see," read a Jan. 5 front page editorial in the People's Daily, the central government's official mouthpiece. "But a China that was pushed to a crossroads proved its 'national capabilities' in taking on a crisis by answering with the advantage of the socialist system with Chinese characteristics."

That statement is cavalier almost to the point of tastelessness but Beijing has earned those bragging rights. China's economy expanded by 10.7% year-over-year in the fourth quarter as most of the world continued to struggle with the aftermath of 2008's financial crisis. For the full year, the nation's gross domestic product (GDP) grew 8.7%.

That easily tops the government's 8% target and dwarfs the economic growth posted by other economies around the world.

Read full article...