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Jul 13, 2012

DealBooK | DealB%K Afternoon Edition: New York Fed Was Warned About Rate Inaccuracies in 2007 A - Barcleys




TOP STORY
New York Fed Was Warned About Rate Inaccuracies in 2007 A Barclays employee notified the Federal Reserve Bank of New York that the firm was underestimating its borrowing costs, following warning signs as early as 2007.

Bank of England Supported Geithner's Rate Advice The Bank of England released emails on Friday detailing conversations about the setting of key interest rates in 2008 with Timothy F. Geithner when he ran the Federal Reserve Bank of New York.
DEALBOOK HIGHLIGHTS
JPMorgan Fears Traders Hid Loss, Now at $5.8 Billion Losses on a soured credit bet could mount to more than $7 billion, as the nation's largest bank indicated that traders may have tried to intentionally conceal the extent of the red ink.
JPMorgan Stock Rises Despite Trading Losses Bad trades may be costing the bank billions of dollars, but investors seem to be taking the news in stride.
Among Moguls, Affection for Obama Wanes While the president still has plenty of fans at Allen & Company's annual gathering of media and technology magnates, some who were once ardent supporters of the president last time are ready to switch their vote to Mitt Romney.
A Show-and-Tell With Google's Hardware Eric E. Schmidt, the executive chairman of Google, used a fireside chat at the Allen & Company conference to show off some of the company's new gadgets.
Coal Magnate Offers $5.4 Billion for Whitehaven Coal Nathan Tinkler, a 36-year-old Australian billionaire, is leading a group that has offered to take Whitehaven private, in a bid that is more than 50 percent above the coal company's trading price.
Wells Fargo Posts $4.6 Billion Profit, Up 17% Wells Fargo reported its 10th consecutive quarter of earnings growth as a result of a booming mortgage business.
More Officials Called to Testify on Duke Energy's Boardroom Coup William D. Johnson, the former chief executive of Progress, and four Duke board members will testify next week before North Carolina's utilities commission.
BUZZ TRACKER
In Barclays Inquiry, the Calculation in Making a Deal Barclays' admitted efforts to manipulate the Libor appear to be a textbook case of white-collar financial crime, but it led to a nonprosecution agreement, James B. Stewart of The New York Times reported.
JPMorgan Discovers Good News in Housing The bank puffed up its second quarter results by transferring $1.4 billion of its allowance for loan losses out of the chief investment office and into the investment bank, Floyd Norris reported for The New York Times Economix blog.
Tell Us How You Really Feel Roger McNamee, a cofounder of the investment firm Elevation Partners, said that Facebook's botched initial public offering exposed "the extreme corruption" of the I.P.O. process and declared that the behavior of both Nasdaq and Morgan Stanley was "borderline criminal."
  • Bloomberg News
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    DealBook Video
    Business Day Live: Geithner's Barclays Concerns
    Business Day Live: Geithner's Barclays Concerns A prescient warning that big banks could manipulate interest rates. | Inside a massive e-mail security breach. | When this ship hits port, the journey has just begun for its cargo of new cars.


CBS NEWS | Political Hotsheet Top Stories: Pressure mounts on Romney to release tax returns.

The CBS News Political Hotsheet newsletter
CBS POLITICAL HOTSHEET TOP STORIES



Amid continued questions over his financial history, Democrats are pressing Romney to release more of his tax history
Read full story
Pressure mounts on Romney to release tax returns

McDonnell blasts Obama campaign on Bain Virginia governor says Democrats waging "campaign of division and misrepresentation"

Poll: Lag in young voters' intentions to vote Fewer young people say they will definitely vote this fall as compared to in 2008, according to new survey

Condoleezza Rice as Romney VP? Mixed reviews Sarah Palin, others weigh in on new speculation that Rice leads Mitt Romney's list of potential running-mates

Cheney praises Romney at fundraiser Romney returned the favor but made no mention of former President George W. Bush

Stocks and Markets in the News | Wall Street at Close

By Kate Gibson 


NEW YORK (MarketWatch) -- U.S. stocks rallied Friday to end their longest losing stretch since May after J.P. Morgan Chase & Co. JPM +5.96% reported quarterly results that beat expectations. "They are the single best bank, not only domestically but globally," Chip Cobb, portfolio manager at BMT Asset Management in Bryn Mawr, Penn., said of the bank. After six down sessions, the Dow Jones Industrial Average DJIA +1.62% rose 203.82 points, or 1.6%, to 12,777.09, up 0.04% for the week. The S&P 500 index SPX +1.65% added 22.01 points, or 1.7%, to 1,356.77, leaving it 0.2% above last Friday's finish. The Nasdaq Composite COMP +1.48% climbed 42.28 points, or 1.5%, to 2,908.47, off 1% for the week.

SEC | Listings of Company Delinquent Filings from the Securities and Exchange Commission. This information has recently been updated ( Thursday July 11, 2012 )

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Third Quarter
34-67431 Jul. 13, 2012 Future Now Group, Inc., and Global Teledata Corp.
34-67430 Jul. 13, 2012 Alderox, Inc., Applied Solar, Inc., Artes Medical, Inc., AskMeNow, Inc., Blink Logic Inc., and Convergence Ethanol, Inc.
34-67429 Jul. 13, 2012 Stream Communications Network & Media, Inc.
34-67428 Jul. 13, 2012 Fashion Fantasia Co., Fedders Corp. (n/k/a FC Liquidating, Inc.), Fifth Dimension, Inc., Fischel Holdings, Inc., Fortunata, Inc., GCA II Acquisition Corp., and GCA III Acquisition Corp.
34-67418 Jul. 12, 2012 Alternative Energy Sources, Inc., Arlington Hospitality, Inc., Consolidated Oil & Gas, Inc., CSMG Technologies, Inc., CytoGenix, Inc., Dakotah, Incorporated, and DelSite, Inc.
34-67416 Jul. 12, 2012 ROK Entertainment Group, Inc., RussOil Corp., Tricell, Inc., Tunex International, Inc. (n/k/a Aone Dental International Group, Inc.), and Wireless Age Communications, Inc.
34-67396 Jul. 11, 2012 Quintek Technologies, Inc., The Saint James Co., Urigen Pharmaceuticals, Inc., Valor Energy Corp., Wherify Wireless, Inc., and WinWin Gaming, Inc.
34-67395 Jul. 11, 2012 Airtrax, Inc., Amedia Networks, Inc., American Business Financial Services, Inc., Appalachian Bancshares, Inc., and Ariel Way, Inc.
34-67394 Jul. 11, 2012 Ohio Ferro Alloys Corp., Orbcomm Corp., Outboard Marine Corp., Oz Communications, Inc. Penn-Pacific Corp., Peoples Community Bancorp, Inc., Performance Health Technologies, Inc., and Petals Decorative Accents, Inc.
34-67378 Jul. 10, 2012 Recycle Tech, Inc.
34-67370 Jul. 9, 2012 Quill Industries, Inc. (n/k/a Eagle Worldwide Inc.), Rocky Point Pharmaceuticals, Inc.,Sentosa Financial Investments, Ltd., Western Futures Fund LP, Western Futures Fund II LP, Wichita River Oil Corp., Woods Cross Holding Corp., and WSC Group, Inc.
34-67367 Jul. 9, 2012 Fourthstage Technologies, Inc., Freesoftwareclub.com, FTM Media, Inc., Full Moon Universe, Inc., and Future Educational Systems, Inc.
34-67366 Jul. 9, 2012 True Product ID, Inc.
34-67365 Jul. 6, 2012 OptiSystems Solutions, Ltd., Paradise Tan, Inc. (n/k/a General Red International), and Power Smoothie Café Franchising, Inc.
34-67361 Jul. 6, 2012 Superior Bancorp
34-67360 Jul. 6, 2012 Aegis Assessments, Inc., APC Group, Inc., Aurelio Resource Corp., BioAuthorize Holdings, Inc., and Fonix Corporation
34-67350 Jul. 5, 2012 Qiao Xing Universal Resources, Inc., and Qiao Xing Mobile Communication Co., Ltd.
34-67348 Jul. 5, 2012 ROK Entertainment Group, Inc., RussOil Corp., Tricell, Inc., Tunex International, Inc. (n/k/a Aone Dental International Group, Inc.), and Wireless Age Communications, Inc
ID-463 Jul. 3, 2012 ProElite, Inc. and Universal Guardian Holdings, Inc.
34-67338 Jul. 3, 2012 A-Power Energy Generation Systems, Ltd.
34-67334 Jul. 2, 2012 Objex, Inc., Online Power Supply, Inc., Orca Technologies, Inc., Orion Research Group, Inc., and PRTX, Inc.
34-67330 Jul. 2, 2012 Apogee Technology, Inc.

BIV Today's Business News: Target announces locations of 19 B.C. stores





Politics and Policy

BC Liquor Store

NDP unveils documents revealing Exel's thirst for liquor contract

NDP liquor critic Shane Simpson has called for the BC Liberal Party government to immediately halt the privatization of the Liquor Distribution Branch after revealing new documents that show how key proponent Exel Logistics has pursued the contract.

Ontario to review new B.C. wine policy “with interest”

The Ontario government is taking notice of a new provincial policy announced today that allows British Columbians to order wine online from the rest of Canada without having to pay B.C. tax on top of originating province’s tax.

Retail and Manufacturing

 

Target announces locations of 19 B.C. stores

Target Corp. (NYSE:TGT) will open 125 stores across Canada next year, including 19 in B.C.
 

Russell Breweries to license brand
in China

Vancouver-based Russell Breweries Inc. (TSX-V:RB) announced that it has signed a letter of intent (LOI) with Vancouver-based FVI Capital Inc. to provide non-exclusive rights for the import, production, packaging, marketing, selling and distribution of Russell brands and merchandise in China.

Technology

High-tech virtual job fair to be held July 24

If you are one of the Nokia Corp. (NYSE: NOK), Radical Entertainment or Research In Motion (TSX:RIM) employees laid off recently, you may want to sign in to the virtual BC Tech Fair July 24.

Economy and Finance

 

China slowdown hurts B.C.’s May exports: Central 1

Slowing growth in China and low natural gas prices contributed to B.C.’s May dip in export volumes, according to Central 1’s most recent B.C. Economic Briefing.

Stocks and Markets in the News | European Markets: Europe stocks lifted by China GDP; telecoms rise, MarketWatch


Europe

 

U.K. stocks up as miners cheer Chinese data Resource firms boost U.K. stocks Friday, following the release of Chinese growth figures that met expectations, but still showed a slowdown.

Europe stocks lifted by China GDP; telecoms rise A Friday rally in European stocks takes the sting out of an otherwise lackluster week for the region’s bourses

Money Show Traders Daily Alert: How to Automate Your Option Trading System

Traders Daily Alert


Tips for Traders

Options Idea

Charts in Play

Currency Corner

Trading Idea of the Day

Today's Featured Videos & Exclusive Interviews

Economist | Selected New articles: Florida, Inner Mongolia and Batman versus physics




Daily chart: A Mongol miracle
Mineral extraction in Inner Mongolia is causing friction and prosperity
read more »

Democracy in America: Election laws
Does Florida have a democracy problem?
read more »
Babbage: Down to earth
Batman's cape would not save him from a long stint in hospital
read more »

Schumpeter: Going global
Terry Leahy on the art of management
read more »

Feast and famine: Family planning
The London summit and beyond
read more »
Babbage: You've been sherlocked
An existential threat to independent programmers or an opportunity?
read more »


 


ADVFN III World Daily Markets Bulletin


ADVFN III World Daily Markets Bulletin  
Daily world financial news

US Market Reports
Stocks Regaining Ground Following Recent Weakness

Stocks have moved mostly higher in early trading on Friday, regaining some ground after trending lower over the past week. The major averages have all moved to the upside, with the Dow rebounding after closing lower in each of the six previous sessions.

The major averages have pulled back off their highs for the session in the past few minutes but remain firmly positive. The Dow is up 102.93 points or 0.8 percent at 12,676.20, the Nasdaq is up 20.05 points or 0.7 percent at 2,886.24 and the S&P 500 is up 11.67 points or 0.9 percent at 1,346.43.

The early strength on Wall Street is partly due to a positive reaction to a report on Chinese economic growth in the second quarter. While the report showed that Chinese GDP increased at its slowest annual rate in over three years, the rate of growth was not as slow as some had feared.

Additionally, the report showed that Chinese GDP increased by 1.8 percent compared to the previous quarter, exceeding economist estimates for a 1.6 percent increase.

Traders have also reacted positively to quarterly results from financial giant JP Morgan (JPM), which reported better than expected second quarter earnings despite a massive trading loss.

JP Morgan said that the trading loss grew to $4.4 billion from its initial estimate of $2 billion but noted that its Chief Investment Office will no longer trade a synthetic credit portfolio.

Banking stocks have shown a strong upward move on the heels of the news from JP Morgan, with the KBW Bank Index up by 1.7 percent. JP Morgan is helping to lead the banking sector higher, advancing by 4.6 percent.

Chemical, steel, and oil service stocks are also seeing early strength, moving to the upside along with most of the major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved modestly higher on Friday, benefiting from a positive reaction to the Chinese GDP data. Japan's Nikkei 225 Index edged up by 0.1 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index is up by 0.8 percent, the French CAC 40 Index and the German DAX Index are advancing by 1.1 percent and 1.3 percent, respectively.

In the bond market, treasuries are giving back some ground after trending higher in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.7 basis points at 1.496 percent.

Canadian Market Report

TSX Up At Open Friday

Bay Street stocks opened higher Friday amid buying across a variety of sectors, with the S&P/TSX Composite Index adding 56.64 points or 0.50 percent to 11,482.11.

Among base-metals stocks, First Quantum Minerals gained close to 2 percent, while Inmet Mining and Teck Resources were adding around 1 percent each.

Gold stocks moved higher tracking a rebound in bullion prices. Allied Nevada Gold, Goldcorp. and Barrick Gold  were up over 1 percent each.

NovaGold Resources Inc. gained close to 5 percent after reporting improved second-quarter net income.

In the oil patch, Petrobakken Energy gained about 3 percent, while Crescent Point Energy and Pacific Rubiales Energy were adding just over 1 percent each

Meanwhile, Broadcasting and wireless communications equipment manufacturing company DragonWave Inc. was extending losses for a second session, shedding about 5 percent. Yesterday, the company reported a wider first quarter loss of $12.6 million or $0.35 per share compared to $9.9 million or $0.28 per share in the same period last year.

The price of crude oil was extending gains Friday morning as economic growth in China, the world's second-largest crude consumer, came in line with analyst estimates. Crude for August moved up $0.79 to $86.87 a barrel.

The price of gold was moving higher after falling in the past three sessions. Gold for August gained $17.40 to $1,582.70 an ounce.

In corporate news from Canada, NovaGold Resources Inc. reported second-quarter income of C$94.2 million or $0.26 per share, up from $24.6 million or loss per share of $0.01 in the comparable quarter last year.

Electronics products company Rutter Inc. slipped into the red in third quarter, reporting net loss of $1.2 million or $0.016 per share, compared to net income of $3.4 million or $0.044 per share in the year ago quarter.

In economic news from south of the border, the U.S., producer prices unexpectedly showed a modest increase in the month of June, according to a report released by the Labor Department Producer price index edged up by 0.1 percent in June after tumbling by 1.0 percent in May. The modest increase surprised economists, who had expected prices to see further downside and fall by about 0.4 percent.

Elsewhere, Moody's Investors Service on downgraded Italy's credit rating by two notches, citing contagion risk from Greece and Spain, higher funding costs and a deteriorating economic outlook

European Market Report  

European Markets Higher After China Data

The European markets are moderate to notably higher on Friday, after China logged the weakest growth rate since the first quarter of 2009, although it almost matched economists' forecast, raising hopes of policy easing.

China's gross domestic product expanded 7.6 percent year-on-year in the second quarter, the National Bureau of Statistics said. This was weaker than the 8.1 percent growth recorded in the first quarter but almost matched economists' forecast of 7.7 percent rise.

Italy, which earlier suffered a ratings downgrade, raised the maximum target from the sale of its new 3-year bond at a lower yield in an auction. The Italian treasury reportedly raised 3.5 billion euros of its July 2015 bond, which was at the top end of the 2.5 billion euros to 3.5 billion euros target.

The yield on the bond declined to 4.65 percent from 5.30 percent in the previous sale of a security with similar maturity on June 14.

Earlier, Moody's Investors Service downgraded Italy's credit rating by two notches, citing contagion risk from Greece and Spain, higher funding costs and a deteriorating economic outlook. Italy's government bond rating was cut to Baa2 from A3. The agency maintained the 'negative' outlook on the rating, citing "substantial" risks to implementing the planned fiscal reforms.

The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.42 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.56 percent.

The German DAX is adding 1.05 percent and the French CAC 40 is rising 0.55 percent. The UK's FTSE 100 is gaining 0.57 percent and Switzerland's SMI is up 0.40 percent.

In Frankfurt, Deutsche Telekom is climbing 2.9 percent. Credit Suisse raised the stock to "Neutral" from "Underperform."

Basf is gaining 1.2 percent and Bayer is adding 0.8 percent. Delticom is climbing 5.6 percent after HSBC upgraded the stock. Deutsche Bank is losing 0.7 percent and Commerzbank is falling 0.2 percent.

Volkswagen is sliding 0.7 percent. The carmaker reported a 8.9 percent growth in vehicle deliveries for the first half of 2012, but added that the second half would be altogether more challenging. BMW is modestly down and Daimler is flat.

In Paris, France Telecom is gaining 3.1 percent. Deutsche Bank raised the stock to "Hold" from "Sell." Exane BNP raised Vivendi to "Neutral" from "Underperform." The stock is gaining 2.4 percent.

Veolia Environnement, Vallourec, LVMH, Alstom and PPR are making notable advances. Mailroom equipment firm Neopost is gaining 3.1 percent. The company announced the acquisition of GMC Software Technology.

Carrefour was raised to "Neutral" from "Sell" at Citigroup. The shares are moderately higher.

Peugeot is plunging 8.1 percent and Renault is declining 2.6 percent. Credit Agricole, BNP Paribas and Societe Generale are moderately lower.

In London, miners are mostly higher. Antofagasta is gaining 2.6 percent and BHP is rising 1.7 percent. Polymetal International is advancing 4.8 percent.

BT Group is climbing 3.5 percent, ITV is gaining 3.7 percent and Burberry is climbing 3.4 percent.

Experian is declining 3 percent. The firm reported higher revenue for the first quarter, but said it is aware of tougher conditions in some markets, especially in the Eurozone.

SSE is dropping 1.2 percent, reportedly on a broker downgrade.

Storebrand is gaining 6.9 percent in Oslo. The company is said to be planning to meet European capital requirements without new share sale.

Temenos is gaining 5.4 percent in Zurich. Sika is dropping 3.9 percent, after the stock was reportedly downgraded.


Asia Market Reports   
Asian Stocks Rise After China Data

Asian stocks snapped a six-day losing streak on Friday after China's much-anticipated second-quarter GDP growth data came in line with analyst expectations. With the growth hitting a three-year low and separate reports showing slowing retail sales and industrial production growth in the world's second-largest economy, investors speculated that Beijing will step up efforts to curb financial risks.

China's gross domestic product expanded 7.6 percent in the three months to June from a year earlier, the slowest pace since 2009 and the sixth consecutive quarter of declining growth, the National Bureau of Statistics said. Industrial production growth in the month fell slightly to 9.5 percent from 9.6 percent in May, while retail sales rose 13.7 percent in June, down from 13.8 percent in May.

Japanese shares moved in a narrow range before ending slightly higher, helped by short covering after six days of losses. The Nikkei average edged up 0.05 percent. China-sensitive stocks like Hitachi Construction Machinery, JFE Holdings and Komatsu rose about a percent each.

Shipping stocks came under selling pressure due to pessimism concerning the industry given the already gloomy economic outlook. Kawasaki Kisen fell 2.4 percent to hit a fresh 2012 low, while Mitsui OSK Lines dropped 2 percent. Dentsu plunged 7 percent after it agreed to buy U.K. media firm Aegis Group for 3.2 billion pounds in cash. Tokyo Electric Power slumped 4.8 percent to hit a fresh 2012 low after the Nikkei said that power companies have decided to support a plan to reform the country's power system.

Chinese shares edged up marginally on lingering domestic and global growth worries. The benchmark Shanghai Composite index swung between gains and losses before ending 0.02 percent higher, with banks pacing the gainers on bargain hunting following steep losses earlier this week. Hong Kong's Hang Seng index added 0.4 percent, although caution prevailed ahead of a key auction of Italian debt and earnings from U.S. banking giants JP Morgan Chase and Wells Fargo due later in the day.

Australian shares rose modestly on relief as Chinese GDP figures weren't as bad as predicted. The benchmark S&P/ASX 200 rose 0.4 percent, while the broader All Ordinaries index ended 0.3 percent higher. BHP Billiton rose 0.3 percent, reversing an early loss, while rival Rio Tinto slid 0.3 percent. Banks gained ground, with ANZ and Westpac rising about 0.8 percent each, while NAB advanced 0.6 percent and Commonwealth added half a percent.

Womenswear retailer Specialty Fashion tumbled 3.9 percent after issuing a profit warning. Origin Energy slipped marginally after it announced another cost blowout and delay to an upgrade of its gas project in Bass Strait. DuluxGroup rose 0.3 percent after the company extended its takeover bid timetable for Alesco Corporation.

Seoul shares snapped a five-day decline on institutional buying. The benchmark Kospi average climbed 1.5 percent, with blue chips rebounding from a sell-off yesterday on optimism the Chinese economy may have bottomed out. Heavyweight Samsung Electronics soared 4.4 percent and Hyundai Motor, South Korea's largest automaker, rallied 3.4 percent, while shipbuilder Hyundai Heavy Industries tumbled 3 percent on a brokerage downgrade.

In economic news, South Korea's central bank today lowered its growth outlook for the economy for the second time this year, a day after it slashed the interest rate in an attempt to shield the economy from the global slowdown. The Bank of Korea now expects the gross domestic product to rise 3 percent in 2012, slower than an April forecast of 3.5 percent. The GDP growth forecast for 2013 was also lowered to 3.5 percent from 4.2 percent.

New Zealand shares fell modestly, as slowing economic growth in China and Singapore increased uncertainties in the global economy. Singapore's economy unexpectedly contracted 1.1 percent in the second quarter, reversing a strong January-March performance, data from the Trade and Industry Ministry revealed. Manufacturing output fell due to waning global demand and was responsible for the GDP decline.

Jeweler Michael Hill lost a percent, Telecom, the largest company on the exchange, fell 1.2 percent, construction firm Fletcher Building dropped 1.8 percent and children's clothing retailer Pumpkin Patch retreated 2.3 percent. Pyne Gould closed on a flat note after the High Court appointed two independent observers to monitor the affairs of its subsidiary, Perpetual Trust.

Elsewhere, India's benchmark Sensex was last trading down 0.2 percent due to fall in heavyweight shares such as Reliance Industries and Infosys. Indonesia's Jakarta Composite index was up 0.9 percent, Malaysia's KLSE Composite edged up marginally and Singapore's Straits Times index was moving up 0.9 percent, while the Taiwan Weighted average fell 0.4 percent.

Commodities 

Crude Up Near 2-week High

Crude oil was extending gains Friday morning as economic growth in China, the world's second-largest crude consumer, came in line with analyst estimates.

China's economic growth eased to a three-year low of 7.6 percent year-on-year in the second quarter, according to the National Bureau of Statistics. The outcome was almost in line with economists' expectations of 7.7 percent expansion.

Light Sweet Crude Oil futures for August delivery, were adding $1.17 to $87.25 a barrel. Yesterday, oil settled higher after the International Energy Agency raised its oil demand growth forecast and investors weighed some crucial initial jobless claims data which showed first-time claims for jobless benefits dropped by 26,000 last week, the lowest in over four years.

The price of gold was moving higher Friday morning after Chinese economic growth data came almost in-line with economists estimates.

China's economic growth eased to a three-year low of 7.6 percent year-on-year in the second quarter, according to the National Bureau of Statistics. The outcome was almost in line with economists' expectations of 7.7 percent expansion.

Gold for August delivery, the most actively traded contract, gained $18.10 to $1,583.40 an ounce. Yesterday, gold extended losses for a third session as the dollar traded firm versus a basket of currencies after the Federal Reserve policy meeting failed to provide any hint of further quantitative easing that investors anticipated.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,269.73 tons from 1,271.24 tons.

This morning, the U.S. dollar was hovering around its 2-year high versus the euro and near a one- month high against sterling. The buck was trading flat flat versus the yen and the Swiss franc.

The euro was under pressure after Moody's Investors Service on downgraded Italy's credit rating by two notches, citing contagion risk from Greece and Spain, higher funding costs and a deteriorating economic outlook. 

CBS NEWS | Daily News Summary: Obama: Romney's time at Bain needs scrutiny.

CBS News.com - Daily News Summary
July 13, 2012 | DAILY NEWS SUMMARY


CBS NEWS TOP STORIES
President's campaign questions whether Romney was involved with company as firm invested in companies that sent jobs overseas
Read full story
Obama: Romney's time at Bain needs scrutiny
Obama questions Romney on jobs In interview with Charlie Rose, Obama says rival's business experience may not qualify him to think about "economy as a whole"

Headlines: Drought spreads to over 1,000 counties in U.S. "CBS This Morning" takes a look at some of the day's headlines from around the globe.

Costa Concordia wreck: 6 months later Families of the 32 people who died in cruise ship tragedy hold memorial services in Italy as wreck languishes

Alleged would-be suicide bomber to plead guilty Chicago man is accused of plotting a suicide bombing overseas and claiming he was inspired by a radical Muslim cleric

Dogs, dead people getting election docs Nonprofit Voter Participation Center admits data-based drive to sign people up for voting is not "a perfect process"

Stowaway kitten survives China-L.A. voyage 3-month-old kitten somehow alive and seemingly well after being stuck in shipping container for 6,500-mile trip

Mom admits beating, gluing girl to wall Texas woman pleads guilty, faces potential life sentence for injuring daughter, 2, apparently over potty training

LIBOR scandal lacks victims for U.S. uproar The New Republic: Alleged interest-rate rigging unlikely to catch fire in U.S. because of difficulty gauging extent of harm

RTTNews Daily Market Analysis

RTT News: Global Financial Newswires
Daily Market Analysis
Friday, July 13, 2012, 09:16
The major U.S. index futures are pointing to a higher opening on Friday, with sentiment still precariously poised, as European debt concerns continue to be on the forefront. The euro is trading lower against the dollar despite the latter showing weakness against most major currencies. Asian stocks closed mostly higher and the European markets are also gaining ground after China reported slower second quarter GDP growth, triggering hopes that the nation will dole out more easing measures, giving thrust to domestic growth and the global economy at large. (Jul 13, 2012) Full Article

Morning Market Briefing


Commentary July 13, 2012
After trending lower over the past few sessions, stocks are likely to regain some ground in early trading on Friday. The major index futures are currently pointing to a moderately higher open for the markets, with the Dow futures up by 38 points. (Jul 13, 2012) Full Article
Economic News
Singapore's gross domestic product was down a seasonally adjusted 1.1 percent in the second quarter of 2012 compared to the previous three months, the Ministry of Trade and Industry said on Friday in an advanced reading. (Jul 13, 2012) Full Article
China's economic growth eased again in the second quarter, logging the weakest growth rate since the first quarter of 2009 while mounting pressure on the authorities to continue policy easing to prevent further deterioration of economic activity in the world's second largest economy. (Jul 13, 2012) Full Article
Moody's Investors Service on Friday downgraded Italy's credit rating by two notches, citing contagion risk from Greece and Spain, higher funding costs and a deteriorating economic outlook. Italy's government bond rating was cut to Baa2 from A3. The agency maintained the 'negative' outlook on the rating, citing "substantial" risks to implementing the planned fiscal reforms. Italy is more likely to experience a further sharp increase in its funding costs, Moody's said. (Jul 13, 2012) Full Article
South Korea's central bank on Friday lowered the growth outlook for the economy for the second time this year, a day after it slashed the interest rate in an attempt to shield the economy from the global slowdown. (Jul 13, 2012) Full Article
Italy saw its three-year borrowing costs decline at a debt auction on Friday, just hours after Moody's downgraded the country's rating citing contagion risk. Falling yields at the auction indicate that investors shrugged off Moody's warning and retained the optimism derived from the latest EU summit and Spain's efforts to meet its deficit goals. The country sold a total EUR 5.25 billion of its medium and long-term bonds against a target of EUR 3.5 billion - EUR 5.25 billion. (Jul 13, 2012) Full Article
Producer prices in the U.S. unexpectedly showed a modest increase in the month of June, according to a report released by the Labor Department on Friday, with prices rebounding slightly after showing a sharp drop in the previous month. (Jul 13, 2012) Full Article
The Bank of England and HM Treasury on Friday unveiled details of a lending scheme that was introduced to boost lending to the real economy and thereby lift it out of the double-dip recession. (Jul 13, 2012) Full Article
Earnings News
JPMorgan Chase & Co. (JPM) on Friday reported 9 percent decline in second-quarter profit, as the loss from a highly publicized trading blunder had grown to $4.4 billion. (Jul 13, 2012) Full Article
Friday, Wells Fargo & Co. (WFC) posted higher-than-expected earnings for the second quarter, helped by strong mortgage income and lower expenses. (Jul 13, 2012) Full Article
Broker Ratings Changes
FBR Capital Markets Initiates Wabash National Corp (WNC) At Outperform With $9 Price Target
(Jul 13, 2012) 
Robert W. Baird Cuts Associated Estates Realty Corp. (AEC) To Neutral From Outperform With $16 down from $20 Price Target
(Jul 13, 2012) 
Robert W. Baird Downgrades Fidelity National Information Services (FIS) To Neutral From Outperform With $38 down from $40 Price Target
(Jul 13, 2012) 
Robert W. Baird Upgrades Cabot Oil & Gas Corp. (COG) To Outperform From Neutral With $48 Price Target
(Jul 13, 2012)
Robert W. Baird Ups Range Resources Corp. (RRC) To Outperform From Neutral With $72 Price Target
(Jul 13, 2012) 
Todays WS Events
Dell Host Annual Meeting Shareholders At 9:00 AM ET
Dell Inc. (DELL) will host its Annual Meeting Shareholders in Round Rock, Texas. The event is scheduled to begin at 9:00 AM ET, July 13, 2012. To access the webcast, log on at www.dell.com/investor (Jul 13, 2012)
JPMorgan Chase & Co. Q2 12 Earnings Conference Call At 7:30 AM ET
JPMorgan Chase & Co. (JPM) will host a conference call at 7:30 AM ET July 13, 2012, to discuss its Q2 12 earnings results. To access the live webcast, log on at www.jpmorganchase.com A call can be accessed by dialing (866) 541-2724 (US) or (706) 634-7246 (International). For replay a call, dial (855) 859-2056 (US) or (404) 537-3406 (International) with Conference ID 87040825. (Jul 13, 2012)
Wells Fargo & Co. Q2 12 Earnings Conference Call At 10:00 AM ET
Wells Fargo & Company. (WFC) will host a conference call at 10:00 AM ET July 13, 2012, to discuss its Q2 12 earnings results. To access the live webcast, log on at wellsfargo.com/invest_relations/earnings A call can be accessed by dialing 866-872-5161 (US) or 706-643-1962 (International). For replay a call, dial 855-859-2056 (US) or 404-537-3406 (International) with Conference ID #87775616. (Jul 13, 2012)