Jan 11, 2011
Submitted by cpowell on 04:41PM ET Tuesday, January 11, 2011. Section: Daily Dispatches By James Campbell
Perth Mint reports 'unrelenting' demand for gold on dip below $1,400
Dow Jones Newswires
Tuesday, January 11, 2011
SINGAPORE -- Demand for gold bullion from Australia's Perth Mint has been unrelenting since gold's price dropped below $1,400 an ounce, a senior Mint official said Tuesday.
"At the moment demand is such that we cannot meet all the enquiries that we are getting," said Nigel Moffatt, treasurer of the Perth Mint, one of the world's largest gold refiners and distributors.
"Demand for our coins and medallions is strong, but the biggest demand is coming from banks and traders looking for kilo bars," he told Dow Jones Newswires.
One-kilogram bars are the most popular trading instrument in Asia's physical market.
Demand doesn't appear to be directly related to the upcoming Chinese Lunar New Year, with buying also coming from in from India, Moffatt said.
"The way I see it at this point, it is because of the current correction in the price rather than anything else," he said.
Spot gold has declined 3.1% since the start of 2011 to $1,376/oz during Asian trade Tuesday after hitting a low of $1,353/oz Friday.
Moffatt said premiums for physical gold had "doubled" in the past week, but declined to provide any figures.
Mitsui Global Precious Metals said in a report that gold was trading at premiums of up to $3 an ounce over the spot price in Hong Kong Monday.
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Personal Finance Daily
JANUARY 11, 2011
Tuesday's Personal Finance stories
- Family-friendly policies? Not so much
- Court ruling is good news for homeowners
- Fund firms seek money-market backstop
- Consumer-credit delinquencies tick up
- Detroit auto-show highlights
Meanwhile, some 44 million Americans don't even get paid sick days. Read Ruth Mantell's Diary of a Recession Baby for more on how this country fares on measures of family-friendliness.
Also, don't miss Amy Hoak's look at how the Massachusetts court ruling on foreclosures last week could be good news for struggling homeowners. Amy's column this week also looks at home builders' growing yet guarded optimism for the housing market in the year ahead.
If you want flexibility at work, it helps to be in an industry where companies are competing for a relatively small group of skilled workers, such as accountants. Not a realistic option for most U.S. workers today.
—Andrea Coombes , Personal Finance editor
Family-friendly policies? In the U.S., not so much
Some lawmakers want to repeal the health-reform law — and doing so would include killing its mandate that some employers provide "reasonable break time" for workers to pump breast milk for their babies. Meanwhile, unlike other major economies, the United States has no federally mandated paid maternity leave. Many workers don't even have access to sick days.
Read more: Family-friendly policies? In the U.S., not so much.
Commentary: What if your mom worked on Wall Street?
Forget Chinese mothers: The Wall Street culture is focuses on its own brand of "stereotypical success." Most of this is about money — having it, flaunting it, using it as a gauge for self-esteem.
Read more: What if your mom worked on Wall Street?
Foreclosure ruling may be good news for homeowners
A ruling against two lenders in Massachusetts on Friday sends a warning to the industry: Before foreclosing on what is for many Americans their most valuable asset — their home — lenders must have proof they have the authority to do it.
Read more: Foreclosure ruling may be good news for homeowners.
Home builders cautiously optimistic about recovery
In the housing market's boom years, more than 100,000 people would head to the annual International Builders' Show. For this year's event, in Orlando, Fla., about half that are expected. Still, signs of growth in the broader economy are giving some home builders cause for cautious optimism.
Read more: Home builders cautiously optimistic about recovery.
SAVING & SPENDING
Consumer-credit delinquencies inch higher
Consumer-credit-delinquency rates ticked higher in the third quarter of 2010 as the labor market "hit the pause button," according to a report released Tuesday by the American Bankers Association.
Read more: Consumer-credit delinquencies tick up.
ECONOMY & POLITICS
U.S. Chamber's head offers rare White House praise
U.S. Chamber of Commerce President Thomas Donohue on Tuesday struck a conciliatory tone with the White House on taxes and trade while he also raised concerns over health care, emission controls and bank reform.
Read more: U.S. Chamber's head offers rare White House praise.
Commentary: Washington, keep your hands off Social Security
Any use of Social Security tax revenues other than paying benefits to those people who are eligible to receive them is not only morally wrong — it is also against the law.
Read more: Washington, keep your hands off Social Security.
Fed officials lower temperature of QE2 debate
Federal Reserve officials who will be voting members of the interest-rate setting Federal Open Market Committee have softened their tone in the public debate over the central bank's controversial $600 billion bond-buying plan.
Read more: Fed officials lower temperature of QE2 debate.
Commentary: Illuminating the ‘vampire squid'
Does Goldman Sachs Group Inc. (GS) deserve the benefit of the doubt when it comes to transparency? Probably not.
Read more: Illuminating the ‘vampire squid.'
Goldman revamping financial reporting
Goldman Sachs said its trading and principal-investments business segment — a key driver of profits — will now be broken out into two separate categories, one of several changes the firm will make to its quarterly reports following an eight-month review of its business practices.
Read more: Goldman revamping financial reporting.
Commentary: 8 rules for our new gender-based economy
We have eight rules that will define an emerging new Gender-Based Economic Theory.
Read more: 8 rules for our new gender-based economy.
Did Apple disappoint with no 4G iPhone?
Today's widely expected launch suggests that a version of the iPhone to work with budding 4G networks may take longer to arrive than some hoped.
Read more: Did Apple disappoint with no 4G iPhone?
Funds back money-market backstop
The mutual-fund industry has backed proposals for a private liquidity facility for money-market funds, as regulators consider ways to prevent a repeat of the September 2008 crisis.
Read more: Funds back money-market backstop.
Schwab settles YieldPlus case for $119 million
Charles Schwab Corp. (SCHW) said Tuesday that it has agreed to pay regulators about $119 million to settle claims it wrongly marketed its short-term money-market fund YieldPlus to clients.
Read more: Schwab settles YieldPlus case for $119 million.
The ‘January First Five Days' indicator
Many investors are celebrating the stock market's gain last week, on the grounds that it triggered a bullish signal from the January First Five Days indicator. But a careful reading of the historical record raises serious doubts.
Read more: The ‘January First Five Days' indicator.
More floods hit Australia; nine dead
Flooding in Queensland takes a turn for the worse, wreaking havoc in the southern part of the Australian state, raising the death toll and leaving many people unaccounted for.
Read more: More floods hit Australia; nine dead.
Another big storm barrels toward Northeast
A winter storm that could dump nearly a foot of snow on parts of the Middle Atlantic region and on the Northeast is due to hit later Tuesday, raising prospects of closed roads, delayed flights and other transportation nightmares.
Read more: Another big storm barrels toward Northeast.
Detroit auto-show highlights
The return of Porsche and a slew of environmentally friendly models highlight this year's show in Motor City.
Read more: Detroit auto show highlights.
AutoNation, Toyota execs welcome 2012
With the show ending for most, Volvo unveils a smashed-up electric vehicle and touts its focus on safety.
Read more: AutoNation, Toyota execs welcome 2012.
Pivotal auction won't decide Portugal's fate
Portugal will attempt to face down speculation about its ability to continue borrowing in the bond market, but the outcome of the eagerly anticipated debt auction scheduled for Wednesday is unlikely to settle the issue.
Read more: Pivotal auction won't decide Portugal's fate.
Japan joins China in pledging Europe debt buys
Whenever China says it will lend a helping hand, Japan is sure to offer an arm or a leg of its own.
Read more: Japan joins China in pledging Europe debt buys.
|New York Market Close Jan 11/11 05:20 PM EST|
| Metals || Bid || Ask || Change || Low || High |
|Evening Market Wrap||Tue Jan 11 2011|
Jan 11, 2011 Stocks End Wobbly Session Modestly Higher - U.S. Commentary Stocks ended modestly higher after a shaky trading session on Tuesday, with the tentative move coming ahead of tomorrow's landmark bond offering in Portugal, which may determine if the country needs a bailout. Initial gains came on the heels of solid earnings from aluminum producer Alcoa (AA), marking a promising start to the quarterly reporting season. Full Article
Jan 11, 2011 U.S. Wholesale Inventories Unexpectedly Fell By 0.2% In November Whole inventories unexpectedly showed a modest decrease in the month of November, according to a report released by the Commerce Department on Tuesday, although the report also showed a notable increase in wholesale sales. The report showed that wholesale inventories edged down by 0.2 percent in November following a downwardly revised 1.7 percent increase in October. Economists had expected inventories to increase by about 1.0 percent. Full Article
Jan 11, 2011 Verizon Wireless To Sell Apple's IPhone 4 From Early FebruaryiPhone maker Apple Inc. (AAPL), Tuesday announced the availability of its latest mobile phone model iPhone 4 through Verizon Wireless, a joint venture of Verizon Communications (VZ) and Vodafone (VOD, VOD.L), from February 10. Existing Verizon customers can pre-order the device on February 3. iPhone's arrival on Verizon ends a five-year exclusive contract of Apple with AT&T. The new contract with Apple and Verizon is multiyear and non-exclusive. Full Article
Jan 11, 2011 Goldman To Reorganize Revenue Reporting StructureGoldman Sachs Group, Inc. (GS), Tuesday in a report said it would begin providing details of revenues generated from its trading and investment divisions and be more transparent in its business practices. The financial services giant in its Business Standards Committee report indicated a re-commitment to transparency of its business performance and risk management practices. Full Article
Jan 11, 2011 Supervalu Posts Q3 Loss On Charges; Slashes OutlookGrocery retailer Supervalu Inc. (SVU) Tuesday reported a loss for the third quarter, hurt by hefty non-cash impairment charges as well as lower revenues. Further, the company issued fourth-quarter earnings forecast below Wall Street expectation and lowered its full-year earnings outlook. The stock is slumping over 11% in pre-market activity. The Eden Prairie, Minnesota-based company reported a net loss of $202 million or $0.95 per share for the quarter, in comparison with net earnings of $109 million, or $0.51 per share in the year-ago quarter. Full Article
Jan 11, 2011 Tiffany Lifts Forecast On Strong Holiday SalesLuxury jewelry retailer Tiffany & Co. (TIF) on Tuesday raised its earnings outlook for fiscal 2010, citing a 11% increase in worldwide net sales during the two-month holiday period ended December 31, 2010. For the year ending January 31, 2011, the New York-based company now forecasts net earnings from continuing operations, excluding nonrecurring items, in a range of $2.83-$2.88 per share. This is higher than the prior range of $2.72-$2.77 per share. Full Article
Jan 11, 2011 Newell Rubbermaid CEO Mark Ketchum To RetireConsumer and commercial products marketer Newell Rubbermaid (NWL) announced Tuesday that its President and CEO Mark Ketchum will retire later in 2011. The Atlanta, Georgia-based S&P 500 company noted that Ketchum has agreed to remain on the company's board through the spring of 2012 in order to ensure a smooth and orderly transition to a new leader. Full Article
Jan 11, 2011 Lennar Earnings Top ExpectationsHome builder Lennar Corp. (LEN, LEN_B) reported Tuesday a higher net profit in its fourth quarter, while attributable net earnings declined from last year. In a difficult housing environment, lower home sales offset the strong growth in revenues from Financial services and Rialto Investments. However, quarterly earnings per share and revenues significantly surpassed market projections. Looking ahead, Lennar expects 2011 to be another profitable year. Full Article
Jan 11, 2011 Oil Spill Commission Calls For Major Offshore Drilling ReformsA Presidentially-appointed commission on last year's massive oil spill in the Gulf of Mexico released its final report on the disaster on Tuesday, calling for comprehensive reforms of both government and industry practices. The commission said its recommended reforms would overhaul the U.S. approach to drilling safety and greatly reduce the chances of a similar, large scale disaster in the future. Full Article
Jan 11, 2011 Colorado Man Arrested For Threatening To Shoot Senator's StaffJust days before the Arizona shooting spree that claimed the lives of six people and left Rep. Gabrielle Giffords, D-Ariz., in critical condition, a Colorado man allegedly threatened to shoot the staff of U.S Senator Michael Bennet, D-Col., and set fire to his office. Full Article
Jan 11, 2011 Gates Claims North Korea Could Pose A Direct Threat To The U.S.Defense Secretary Robert Gates warned Tuesday that North Korea could become a "direct threat" to the United States in five years or less if the communist country continues on its current path towards developing intercontinental ballistic missiles. Gates expressed his concerns to reporters following a meeting with Chinese President Hu Jintao, noting that he has shared his concerns about North Korea with Chinese officials. Full Article
Jan 11, 2011 Poll Shows Most Americans Say Rhetoric, Arizona Shooting UnrelatedWhile many have called for the political rhetoric to be toned down following the mass shooting in Tucson, Arizona, on Saturday, the results of a CBS News poll released on Tuesday showed that a majority of Americans think that the harsh political tone and the shooting were unrelated. The poll showed that 57 percent of Americans think that the political tone had nothing to do with the shooting, compared to 32 percent who believe that it did. Full Article
Energy shares lift Wall Street in light volume | Financial & Forex Info News | Reuters Daily Investor Update
Financial & Forex Info News
|Energy shares lift Wall Street in light volume|
|NEW YORK (Reuters) - Energy shares helped the Dow and S&P 500 end a three-day losing streak on Tuesday, even as investors worried rising fuel costs will undercut economic growth. | Full Article|
|Goldman pledges openness, avoids shakeup|
|January 11, 2011 01:52 PM ET|
|NEW YORK (Reuters) - Goldman Sachs Group Inc pledged to be more open about how it makes money and to put clients' interests ahead of its own, eager to rebut criticism that it acts more like a hedge fund than a bank. | Full Article|
|Two Fed banks wanted discount rate hike: minutes|
|January 11, 2011 02:51 PM ET|
|WASHINGTON (Reuters) - Directors of Federal Reserve banks in Dallas and Kansas City again requested, unsuccessfully, a 0.25 percent rise in the rate charged to banks for emergency loans, minutes of Fed meetings in November and December showed on Tuesday. | Full Article|
|Schwab in $119 million SEC accord, two execs charged|
|January 11, 2011 04:34 PM ET|
|NEW YORK (Reuters) - Charles Schwab Corp will pay $118.9 million to settle regulatory charges that it hid from investors the mortgage-related risks in a seemingly safe, multibillion-dollar bond mutual fund. | Full Article|
|Holiday surprises help Sears and Tiffany|
|January 11, 2011 10:51 AM ET|
|CHICAGO (Reuters) - The holiday shopping season still delivered a few surprises on Tuesday, both naughty and nice, showing that the U.S. economic recovery is not strong enough to lift all retailers. | Full Article|
Verizon Wireless ends long wait for iPhone fans | Financial & Forex Info News | Reuters - Technology Report
|Verizon Wireless ends long wait for iPhone fans|
|NEW YORK (Reuters) - Frustrated Verizon Wireless consumers soon will get their hands on Apple Inc's iPhone after waiting three-and-a-half years. | Full Article|
|MySpace lays off nearly half its staff|
|January 11, 2011 02:18 PM ET|
|NEW YORK/SAN FRANCISCO (Reuters) - News Corp's MySpace is laying off nearly half its staff, setting the stage for a sale of the former Internet social networking leader as is it refocuses as an entertainment site. | Full Article|
|WikiLeaks activists may seek to quash demand for docs|
|January 11, 2011 03:58 PM ET|
|WASHINGTON (Reuters) - Two prominent WikiLeaks supporters in the Netherlands and Iceland are consulting U.S. lawyers about ways to stop the Justice Department getting their Twitter records in a probe into the leak of secret documents. | Full Article|
|Mobile broadband users seen hitting 1 billion in 2011|
|January 11, 2011 07:52 AM ET|
|STOCKHOLM (Reuters) - Mobile broadband subscriptions are on track to surpass 1 billion in 2011 only months after reaching half a billion, Ericsson said on Tuesday, highlighting a key growth driver for the telecom sector. | Full Article|
|Shares of AMD slump following CEO's departure|
|January 11, 2011 12:09 PM ET|
|SAN FRANCISCO (Reuters) - Shares of Advanced Micro Devices Inc slumped after the unexpected resignation of its chief executive underscored doubts about the company's strategy. | Full Article|
By LANDON THOMAS Jr.
Greece, Ireland and Portugal all tapped domestic banks after they'd been shut out of international bond markets.
By JENNA WORTHAM
The highly anticipated move marks the end of a five-year agreement of exclusivity between Apple and AT&T.
By JULIA WERDIGIER
The Barclays chief pledges to show restraint on pay as a debate about bankers' bonuses gets a hearing in the British Parliament.
By KEITH BRADSHER
The Chinese government has been printing renminbi at a furious pace to buy the dollars and euros pouring into the country through trade surpluses and foreign investment.
By SUSANNE CRAIG
The investment bank will also be giving investors a more-detailed look into its financials, starting with a restatement of its third-quarter results.
etWatch | Market Pulse
By Nick Godt
NEW YORK (MarketWatch) -- U.S. stocks finished higher on Tuesday, amid optimism at the start of earnings season while concerns over European sovereign debt abated. The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (DJIA 11,672, +34.43, +0.30%) rose 34.43 points, or 0.3%, to end at 11,671.88, lifted by a 2% gain in shares of Bank of America /quotes/comstock/13*!bac/quotes/nls/bac (BAC 14.69, +0.01, +0.03%) and a 1.7% advance in shares of Intel Corp. /quotes/comstock/15*!intc/quotes/nls/intc (INTC 21.07, +0.02, +0.10%) . The S&P 500 index /quotes/comstock/21z!i1:in\x (SPX 1,274, +4.73, +0.37%) rose 4.73 points, or 0.4%, to 1,274.48, lifted by its energy and materials sectors. The Nasdaq Composite /quotes/comstock/10y!i:comp (COMP 2,717, +9.03, +0.33%) rose 9.03 points, or 0.3%, to 2,716.83.
Most Recent Market Pulse4:57 PM Lululemon raises outlook; shares jump 7%
FINANCIAL & FOREX INFO NEWS
|A potentially gruesome day|
|The eyes of the nation are on Queensland this morning.|
Brisbane residents have been told to stay out of the city, thousands of people will evacuate, up to 100,000 people will be hit by power cuts in Brisbane city this morning, Lord Mayor Campbell Newman says at least 6500 homes will go under, and forecasts say that almost one in 10 homes could be affected by the flood waters surging down the Brisbane River.
At a news conference this morning, Queensland Premier Anna Bligh predicted that as search and rescue efforts ramp up today more bodies could be found. The number of people missing has risen to over 90, the Brisbane River has broken its banks at Yeronga this morning, flooding has passed the 17 metre mark in Ipswich and is on its way to 22 metres and the flooding of the Brisbane River is not expected to peak until 2pm tomorrow.
"Right across this region, this river is creating chaos, terrifying people and causing damage,'' the Premier said.
Prime Minister Julia Gillard is also in Brisbane this morning. She warned Australians yesterday to expect the death toll from the flood crisis to rise, while the government committed 10 Australian Defence Force helicopters and about 200 personnel to evacuation efforts and the search for those missing.
And this morning Ms Gillard said she had been "shocked by the wall of water that has created such devastation...the dimensions of it are just mind-boggling''.
Ms Gillard confirmed more dead were expected in the coming days too, conceding that "we are bracing for further bad news''. She will meet with emergency services teams today.
Across the papers: THE nation confronts its worst flood disaster in living memory, with 30 people believed dead and 78 missing in southeast Queensland. The wall of water bearing down on Brisbane threatens to engulf thousands of homes and put more people at risk. The official death toll from the flash flooding that ripped through Toowoomba and the Lockyer Valley on Monday stands at 10, with half the victims children, but Julia Gill