Oil August 16th Penny Stock Winners, Losers, and Stock Scans

Oil

Today's Winners and Losers

Today's Bottom Scan

Earn SAGD Running After The Dump

Earn

SAGD had a strong showing today and has made a nice move off its dump lows.  We could see the stock move back over $.01 if this momentum and buying pressure continue.

Signals Analysis: Oil price rise raises specter of global recession

Signals Analysis: Oil price rise raises specter of global recession LONDON (Reuters) - A jump in energy prices is jamming the slow-turning cogs of an economic recovery in the West, but that may be nothing compared to the economic shock an Israeli attack on Iran would cause. Oil rose to a 10-month high above $125 a barrel Friday, prompting responses from policymakers around the world including U.S. President Barack Obama, watching U.S. gasoline prices follow crude to push toward $4 a gallon in an election year. Europe may have more to fear as its fragile economic growth falters and Greece, Italy and Spain look for alternative sources to the crude they currently import from Iran, where an EU oil embargo, intended to make Iran abandon what the West fears are efforts to develop nuclear weapons, comes into force in June. In euro terms, Brent crude rose to an all-time high of 93.60 euros this week, topping its 2008 record. 'The West's determination to prevent Iran acquiring nuclear weapons is coming at a price - a price that might include a second global recession triggered by an oil shock,' said David Hufton from the oil brokerage PVM. In dollar terms, oil prices are still some $20 a barrel short of their 2008 record of $147. But the latest Reuters monthly survey will Monday show oil analysts revising up their predictions for Brent crude by $3 since the previous month. Such a change is big in a poll of over 30 analysts, and last happened at the peak of the Libyan war in May. Ian Taylor, head of the world's biggest oil trading house Vitol, told Reuters this week prices could spike as high as $150 a barrel if Iran's arch-enemy Israel launched a strike at its nuclear facilities - an option Israel has declined to rule out. 'I used to think this would never happen,' Taylor said, 'but everyone you speak to says the Israelis will have a go at striking at Iranian nuclear sites. 'The day that happens, you have to believe the Iranians throw a few mines in the Strait of Hormuz and, for a few hours at least or maybe more, I cannot see a scenario where prices would not be at that sort of level ($150).' The U.N. nuclear watchdog said Friday Iran had sharply stepped up its uranium enrichment, which Iran insists is solely for civilian purposes. Israel has warned that, by putting much of its nuclear program underground, Iran is approaching a 'zone of immunity,' but it has also said any decision to attack is 'very far off.' Wall Street bank Merrill Lynch said this week that oil prices could climb to $200 over the next five years. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> So far this year, dollar prices for Brent crude have risen by more than 15 percent, pushed up mainly by fears about Iran. The loss of supply from three small and mid-sized producers suffering internal turmoil - Syria, Yemen and South Sudan - has added to the supply worries. WEAK GROWTH, HIGH PRICES A stabilization of the U.S. economy may explain some of the rise in oil prices, but the global economy is growing far more slowly now than at this time last year, yet crude prices are just as high. World equities and oil have typically been closely correlated since 2008 because both were driven by global demand. However, as oil prices start to respond to supply problems, the correlation is evaporating, and the global economy is already paying a high price. Data published this week showed unexpectedly weak activity in Europe's most powerful economy, Germany, and in France, sparking fresh worries that the region could tip into recession. Few have forgotten that in 2008, within six months of hitting its all-time high, oil plunged as low as $35 a barrel with the onset of the global credit crisis. In the United States, demand for refined oil products is close to its lowest level in nearly 15 years, indicating that motorists are cutting back their mileage. 'The price spike is going to be a challenge for politicians in the West running for re-election,' said Olivier Jakob from the Petromatrix consultancy. He said developed countries would find it hard to justify a release of strategic oil stocks similar to what they did in 2011. Unlike a year ago, when Libyan oil exports were disrupted by a war, this year 'there is ... instead a voluntary restriction on buying from a specific country,' said Jakob. Other than a release of oil stocks, developed countries could resort to yet another round of monetary easing, to which emerging markets will respond with quantitative tightening, price controls and subsidies, said analysts from HSBC. 'In terms of fiscal health, it would seem that Asia is better placed than other regions to deal with an oil price shock,' HSBC said in a note last week.

Forex Swing Trade Idea: RGLD

Forex

RGLD offers good swing trade potential. Stock is breaking out of small consolidation. 4 to 5 dollar potential from here

Signals Obama Said to Reprise Deficit, Tax Proposals for 2013 Budget

Signals Obama Said to Reprise Deficit, Tax Proposals for 2013 Budget President Barack Obama will reprise previously rejected deficit-reduction plans and tax increases on the wealthy while proposing new incentives for companies to return jobs to the U.S., as part of his fiscal 2013 budget, administration officials said. The election-year spending plan, due to be presented to Congress Feb. 6, is intended to demonstrate the administration's intent to chip away at the nation's long-term deficits. The nation is at a turning point, Obama told business leaders yesterday at a White House event, where he promised to seek tax breaks for companies that make new investments in the U.S. or bring jobs back from overseas. He didn't give details. 'After shedding jobs for more than a decade, American manufacturers have now added jobs for two years in a row,' Obama said. 'But when a lot of folks are still looking for work, now is the time for us to step on the gas.' Economic growth and job creation are expected to be the main issues in the presidential campaign this year. Mitt Romney, a former Massachusetts governor and the front-runner for the Republican nomination, is making criticism of Obama's stewardship of the economy a prime focus of his stump speeches. The unemployment rate has declined for four straight months to 8.5 percent in December, and the Labor Department has reported six consecutive months of job gains of 100,000 or more. Still, the rate has been above 8 percent for almost two years, and little headway has been made in recovering the 8.75 million jobs lost as a result of the recession that ended in June 2009. Election Issue Only one U.S. president, Ronald Reagan, has been re-elected since World War II with a jobless rate above 6 percent. Reagan won a second term with the rate on Election Day 1984 at 7.2 percent, having dropped almost three percentage points in the previous 18 months. Obama also is seeking to make headway on the deficit, which hit $1.3 trillion in fiscal 2011, the third highest as a percentage of gross domestic product since 1945. The president will offer a plan for deficit reduction along the lines of the $4 trillion proposal that he outlined last September. Two administration officials confirmed the plan on condition of anonymity because they weren't authorized to discuss it before it's announced. The previous plan called for $1.5 trillion in tax increases over the next decade, including the expiration of Bush-era tax cuts for families earning $250,000 or more a year. It also would make changes in mandatory spending programs, cutting Medicare and Medicaid and farm subsidies, selling government assets and reducing federal worker benefits. Republican Reaction A spokesman for House Speaker John Boehner said Congress would reject the deficit plan, just as it did last September. 'The president isn't serious if all he's offering are the same job-killing tax hikes that even Democrats in the Senate have already rejected,' Brendan Buck, the spokesman for the Republican leader, said in an e-mailed statement. 'Our debt is threatening the economy as well important programs many seniors rely on. We cannot afford another punt by the president.' Obama's last budget said the deficit in the current fiscal year would be $1.1 trillion, or 7 percent of GDP. By 2015 it would decline to $607 billion, or 3.2 percent of GDP, according to the administration's forecast. Because a 12-member so-called supercommittee of lawmakers failed to agree on a deficit-reduction plan in November, the agreement between the White House and Congress requires more than $1 trillion in automatic, across-the-board cuts in discretionary spending beginning in January 2013. Obama has threatened to veto any attempts to get around the spending cuts and blamed Republicans for refusing to compromise. One Budget One official dismissed speculation Obama would offer two budgets next month: a conventional version and a second one reflecting automatic cuts, known as sequestration. The Budget Control Act of last August doesn't require the Obama administration to submit a budget that includes specific details from a sequester, should it occur. Stan Collender, a budget expert and managing partner at Qorvis Communications LLC in Washington, told reporters at a Jan. 9 seminar that Congress will spend weeks after the elections trying to avoid automatic budget cuts. 'This will be the year of avoiding the sequester,' he said. Many of the tax and spending proposals in Obama's $3.7 trillion budget last year were ignored or rejected by Congress. His fiscal 2013 spending plan probably will encounter even more resistance in an election year when the presidency, every seat in the U.S. House and one-third of those in the Senate will be decided. To contact the reporter on this story: Roger Runningen in Washington at rrunningen@bloomberg.net To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Earn Few good setups

Earn

Swing Play

pullback play

Swing Play

145 possible target

Swing Play

24.5 possible target.

Swing Play

24 possible target

Stock To watch

Earnings last night.

Signals UYMG Issues Impressive News Today

Signals UYMG is a stock I posted last week as a bounce candidate.  Today's news could help bolster investor sentiment.  After posting some strong revenue numbers the president of UYMG stated:

'Our authorized share count has risen this year to account for our transition into On Track Technology becoming our main subsidiary. We will not be raising the Authorized share count any further while we control/own UYMG,' said Michael Oliver president of Unity Management group Inc. He went on to add that our valuation or market capitalization is very low for the nature of what we are trying to accomplish. Our valuation is that of many OTC Market shell companies at this time. We are not a shell and have many results, announcements, and filings coming, that will yield a higher value immediately as traders and investors participate in the trading of our stock. We are looking for millions of dollars of value and business here, not 10s of thousands or hundreds of thousands.

Might not be a bad time to take a closer look at UYMG.  I think the stock heads back over $.002 this week... but what do I know?



On Track Technology Begins Work On Production Leases In Navarro County
EAST HANOVER, N.J., Sept. 4, 2012 /PRNewswire via COMTEX/ -- Unity Management Group (OTC Pink: UYMG), a business resource and service company, is pleased to announce its wholly owned subsidiary, On Track Technology Solutions Inc. (OTT), and their consulting firms have entered into a farm out agreement to begin work to establish production on a group of contiguous leases in Navarro County. There are approximately 52 wellbores with 6 being State approved injection wells; wellbores identified at the Texas Railroad Commission as lease numbers 01689, 02032, 02033, 02216 and 02503.

OTT President, Eddie Schilb said, 'On Track is working with an area Geologist, and a Chemical firm to develop a confidential completion, and chemical Huff & Puff treatment using Co2, Nitrogen or a combination of the two. Based on conversations with one Petroleum Engineer we believe a potential of 89 BOPD may be achievable upon a successful implantation, and successful results of treatment, installation of proper production equipment, and pressurization of certain/specific wellbores within the leases. While the price of oil varies daily we used $86.08 per barrel (todays price although most 5 year forecast is $101.07 Per Barrel); upon successful implementation 89 BOPD would add approximately $186,318 per month or $2,235,821 annually.

On Track Vice President and Staff Engineer Ayo Odetunmibi commented that this property fits nicely with our other properties. 'We are looking forward to testing these wells; it is an exciting time and I am excited about the potential in this field. Eventually we want to test the possibility of other profitable formations on this acreage.'

'Our authorized share count has risen this year to account for our transition into On Track Technology becoming our main subsidiary. We will not be raising the Authorized share count any further while we control/own UYMG,' said Michael Oliver president of Unity Management group Inc. He went on to add that our valuation or market capitalization is very low for the nature of what we are trying to accomplish. Our valuation is that of many OTC Market shell companies at this time. We are not a shell and have many results, announcements, and filings coming, that will yield a higher value immediately as traders and investors participate in the trading of our stock. We are looking for millions of dollars of value and business here, not 10s of thousands or hundreds of thousands.

Signals August 21st Penny Stock Winners, Losers, and Bottom Scan

Signals

Today's Winners and Losers

Today's Bottom Scan

Oil 5 Unusual Sales Taxes You Need To Avoid

Oil 5 Unusual Sales Taxes You Need To Avoid With the economy still struggling, states are getting fairly crafty with how they charge consumers via sales taxes. It's no secret that dubious, yet all-too enforceable government laws have been with us since the dawn of the civilized world. In ancient Egypt, the pharaohs taxed cooking oil – of course, the main seller of cooking oil was the pharaoh. During the first century AD, the Roman empire taxed urine – a popular source of ammonia for common tasks like tanning hides and cleaning clothes. Then at the height of the Dark Ages (an era in European history notorious for its poor hygiene), some European governments taxed the sale of soap! Unfortunately, onerous and unusual state taxes are still very much with us. What are some of the biggest offenders – and are they active in your state? Here's our top five: Food Packaging Tax States like Colorado have a weird definition of what constitutes food packaging. In using the term 'essential' in its tax language for such commodities, Colorado finds itself in the strange position of taxing paper cup lids and napkins, but not paper cups or fast-food French fry containers. Hot Air Balloon Tax If you're in Kansas and in the mood to take a ride in a hot air balloon, beware of the state government's 'amusement' tax. State regulation makes balloon rides taxable. But there is a caveat – only balloon rides that are tied, or tethered to the ground, are considered taxable. So, if you want to avoid paying taxes when taking a balloon ride over Topeka, make sure to leave the rope at home! Careful on That Bagel New York State has an interesting way of handling bagels – and taxes on buying bagels. If you want to eat a bagel tax-free, don't have the deli counter 'prepare' it for you (i.e., add cream cheese or cut the bagel in two pieces). Prepare that bagel yourself, and you don't have to pay a tax on it. Wet Fuse In West Virginia, celebrating the Fourth of July – or any celebration where fireworks are used, can lighten your wallet. The state has a special tax – on top of its 6% sales tax – on things like ladyfingers and sparklers. Fruit Cakes California has gone bananas over the purchase of fruit by consumers. If you buy an apple from a regular retailer, you're in good shape, as the purchase is tax-exempt. If you buy fruit from a vending machine – and who hasn't done that – you'll pay an additional 33% on the amount of the purchase. Maybe the most egregious case of over-taxation on a state level comes from Pennsylvania, where the commonwealth actually taxes the use of air (on carwash vacuum cleaners). The Bottom Line The above taxes certainly aren't the only taxes on statewide level, but they are surely among the most unique. This site has a more complete list of sales taxes in all 50 states: http://retirementliving.com/RLtaxes.html .

Forex Netflix shares rise on investor optimism

Forex NEW YORK (AP) -- Shares of Netflix Inc. rose Friday on expectations that its shares will get a boost from the upcoming release of its fourth-quarter results. THE SPARK: Netflix shares have risen more than 40 percent in just the past week, prompting investors to wonder just how high they can go. But B. Riley & Co. backed its 'Buy' rating for Los Gatos, Calif.-based Netflix, saying that investors should hold on to their shares until after the company's fourth-quarter conference call on Jan. 25, when it's expected to update its outlook for the year. THE BIG PICTURE: Netflix shares took a beating and subscribers fled after the company said in July that it would increase U.S. prices by as much as 60 percent. Things only got worse two months later when Netflix said it would spin off its DVD-by-mail rental service into a separate website called Qwikster. It scrapped that idea in October. Since peaking in mid-July, Netflix shares have lost about 70 percent of their value. THE ANALYSIS: Analysts for B. Riley noted that Netflix shares are rapidly approaching the firm's $100 price target and said the company will probably post quarterly losses through at least the first half of the year. But they also said that Netflix's customer base appears to be stabilizing, which should reassure investors that the company is holding its own against the competition. 'We continue to believe that Netflix offers consumers the greatest content variety versus price relationship of the various choices,' the analysts wrote in a note to investors. 'And with the surprisingly positive announcement early last week that Netflix streamed more than 2 billion hours of movie and TV show content in the fourth quarter, we believe this is more likely to be the case than not.' In addition, the company should eventually get a boost from the expansion of its steaming services into new international markets. THE SHARES: Up $2.32, or 2.5 percent, to $94.47 in afternoon trading.

Earn August 16th Penny Stock Winners, Losers, and Stock Scans

Earn

Today's Winners and Losers

Today's Bottom Scan

Earn Mexico says G20 to look at smoothing capital flows

Earn Mexico says G20 to look at smoothing capital flows Mexican Finance Minister Jose Antonio Meade speaks during an interview with Reuters in Mexico City February 14, 2012. REUTERS/Henry RomeroView Photo Mexican Finance Minister Jose Antonio Meade speaks during an interview with Reuters in Mexico City February 14, 2012. REUTERS/Henry Romero MONTEVIDEO (Reuters) - Mexico will include possible steps to blunt the impact of sharp capital flows on the Group of 20's policy agenda after discussions with Latin American neighbors, Finance Minister Jose Antonio Meade said on Sunday. Mexico, which holds the G20's rotating presidency this year, hosted a seminar about G20 priorities on the sidelines of meetings of Inter-American Development Bank. The bloc's only Latin American members are Brazil, Mexico and Argentina. Meade said via his Twitter account that suggestions from the region would help to enrich the work of the G20, including a push to ease the impact of capital inflows and outflows and tools to administer flows better. One suggestion Mexico would take on board was to 'develop a better capacity to absorb financial flows in domestic financial systems,' he said. Many delegates at the IADB meeting have expressed concern about a recent move toward protectionism, particularly by Brazil, which last week pushed Mexico to curb auto exports over the next three years to boost its industrial sector, hit by an appreciating currency. Brazil blames loose monetary policy in developed economies for the foreign cash flows that have pushed up the real and unleashed a flood of cheap imports, hurting the competitiveness of Brazilian industries. Officials present at the Montevideo meeting said Uruguay, Paraguay and other countries had pushed for Mexico to make sure the G20 addressed currencies and trade barriers. 'Mexico was asked to raise issues of protectionism, exchange rates and capital flows,' Paraguay Economy Minister Dionisio Borda said. Meade told Reuters the G20 remained committed to combating protectionism and there was no intention to change this. 'In every G20 meeting what we have done is reconfirm the promise to combat protectionism, recognizing that this is a measure which does not contribute to global growth,' he said. In the G20 leaders' November communiqué, the group said multilateral trade was important as a way to avoid protectionism and called for more exchange rate flexibility. Protectionism and capital flows were not specifically mentioned in the communiqué following the G20 finance ministers' meeting in Mexico City in March, but Mexico has said one of its G20 priorities is economic stabilization. (Reporting by Krista Hughes and Guido Nejamkis; Editing by Maureen Bavdek)

Forex Comments from G20 finance chiefs meeting in Mexico

Forex Comments from G20 finance chiefs meeting in Mexico MEXICO CITY (Reuters) - Following are comments from policymakers attending the meeting of Group of 20 finance ministers and central bankers in Mexico City on Saturday. U.S. TREASURY SECRETARY TIMOTHY GEITHNER 'I think it's important to give Europe's leaders credit for what they have accomplished ... and put in place in terms of the architecture of a credible response in the last four months.' 'They have had a big impact in reducing the downside risks to growth ... though it's important not to rest on that progress.' 'I hope that we're going to see, and I expect we will see, continued efforts by the Europeans ... to put in place a stronger, more credible firewall.' CANADIAN FINANCE MINISTER JIM FLAHERTY 'I do want to encourage Germany to take that leadership role very seriously and come up with an overall euro zone plan.' 'I think that what I'd like to see in the communique is language that indicates that the real question is, when will we see the euro zone plan. And that discussions about other countries through the IMF supporting the euro zone plan should await the answer to the first question.' 'I don't think we're ever going to be able from the outside to impose a deadline on the euro zone. That's up to them.' GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE 'It does not make any economic sense to follow the calls for proposals which would be mutualizing the interest risk in the euro zone, nor in pumping money into rescue funds, nor in starting up the ECB printing press.' 'I am worried the overriding problems ... have not been tackled sufficiently. We have to be more daring when it comes to these large and fundamental challenges.' 'You know that Greece is a special and unique case...The main difficulty is a serious lack of competitiveness.' JAPANESE FINANCE MINISTER JUN AZUMI 'I'd like to see how Europe will make concrete efforts and then discuss how we can contribute.' 'I said that I expect debate on strengthening of the IMF lending capacity will progress on condition that the problem of Europe's debt crisis is put to an end by the G20 meeting in Washington in April.' 'The present firewall involves strengthening of EFSF and increase of upper cap on ESM. But I said (at G20) that they should be further strengthened.' 'The economy is somewhat picking up in the world as a whole, including Japan, and (we) want to put an end to the Europe crisis in the early spring and to accelerate the global economic growth.' BRAZILIAN FINANCE MINISTER GUIDO MANTEGA 'Emerging countries will only help under two conditions; first that they strengthen their firewall and second for the IMF (quota) reform be implemented.' 'I see most countries sharing a similar opinion that the Europeans have to strengthen their firewall.' JAY COLLINS, SENIOR CITIGROUP EXECUTIVE 'The lack of a firewall decision coming out of Europe takes a toll, speed matters.' 'Speed and urgency is critical.' BANK OF JAPAN GOVERNOR MASAAKI SHIRAKAWA 'Heightening geographical risks and some bright movements in advanced economies after the New Year are factors behind the underlying crude oil price hikes. Of course, monetary easing has been continuing but I don't see it as a major factor for driving up crude oil prices. Generally speaking, we'll closely watch effects and side-effects of monetary easing.' MARK CARNEY, BANK OF CANADA GOVERNOR AND CHAIRMAN OF THE FINANCIAL STABILITY BOARD 'We are cursed with living in extraordinary times. There are two critical challenges that are really facing policymakers at the moment. Restoring growth and stability in Europe. There's been quite appropriately tremendous attention paid to that. But at the same time, just doing that will not be enough.' 'We need to rebuild strong, sustainable, balanced growth in the global economy.' 'One of the issues in these G20 meetings has been that the issue of the moment has often, not surprisingly, crowded out this fundamental medium-term issue.' 'For emerging markets, the weak growth prospects and large accommodative monetary policies in the G3 (major advanced economies) tends to push capital flow towards them, exacerbating concerns about sudden stops and potentially causing a reaction in terms of capital controls.' 'Some emerging markets are reluctant to abandon exchange rate strategies which have served them so well in the past, and so there's a vicious circle here.' BANK OF ITALY GOVERNOR IGNAZIO VISCO 'During the G20 meeting we will discuss the outlook for the global economy and we will probably talk about the developments on the oil markets. Tensions are growing.' 'We have to be vigilant regarding oil.' 'At the moment we don't see the need for a new LTRO by the ECB, but we will have to see the whole effects of the second one (on February 29) before taking a decision.' 'Italy has made remarkable progress on the budget side, now it has to work on growth, even Europe should insist on growth.' OECD SECRETARY-GENERAL ANGEL GURRIA 'The Greek bailout was not a deal, it was an ordeal ... the problem was it came too late.' 'I don't know if Greece's debt target of 120 percent of GDP will be enough -- that will depend on whether Greece delivers on its policies.' 'We have run out of monetary policy room ... we have run out of fiscal room in most countries, some have a little fiscal room now.' 'The ECB's LTRO (long term refinancing operation) is no substitute for a European firewall.' 'It's already six months to a year late... We need a massive European firewall now.' (Compiled by Kieran Murray)

Signals U.S. did not call for strategic oil release: G20 sources

Signals U.S. did not call for strategic oil release: G20 sources U.S. Treasury Secretary Timothy Geithner (C) and Chairman of Grupo Financiero Banorte Guillermo Ortiz (L) arrive to a meeting of Group of Twenty (G20) leading economies' finance ministers and central bankers in Mexico City February 25, 2012. REUTERS/Tomas Bravo MEXICO CITY, Reuters (Feb 25) - The United States did not openly call for a release of countries' strategic oil reserves during Group of 20 meetings this weekend, Group of 20 sources said on Saturday. Treasury Secretary Timothy Geithner said on Friday the United States is considering a release from its strategic oil reserves as rising tensions between Iran and the West over its disputed nuclear program fueled a rise in oil prices. At meeting of G20 economies on Saturday, two people familiar with the discussion said finance officials had discussed the risk to the world economy from oil prices, which rose above $125 a barrel on Friday, but the United States did not push for a release of strategic reserves. Countries hold oil reserves as a buffer against sudden drops in supply. A draft communique for the G20 meeting, which is still under discussion, said high oil prices were a risk to the global economy, the sources said, although the outlook was cautiously optimistic. 'The communique says that there are some positive signs in the global economy, coming especially from the U.S. economy, but they are tentative,' one G20 official said. (Reporting by Francesca Landini and Dave Graham; Writing by Krista Hughes)

Signals Big stocks on the move

Signals

Large cap stocks are showing good action. Besides AAPL, GOOG was another big mover yesterday. AMZN may be setting up for breakout.

Oil BRICS call for open selection of next World Bank chief

Oil BRICS call for open selection of next World Bank chief MEXICO CITY (Reuters) - A meeting of BRICS major emerging countries discussed the selection process of the next head of the World Bank and emphasized it should be open to all countries, rejecting the tradition that the job automatically goes to an American, a senior BRIC official said on Saturday. The official, speaking after a meeting of the BRICS - Russia, South Africa, Brazil, India and China - said the United States had not circulated the name of its proposed candidate for the World Bank. Asked whether emerging economies could field their own candidate for the post, the official said: 'That is certainly a discussion we will have.' (Reporting By Lesley Wroughton; Editing by Chizu Nomiyama)

Forex Germany wants Greece to give up budget control

Forex Germany wants Greece to give up budget control RELATED QUOTES Symbol Price Change TRI 27.82 -0.10 Related Content A Greek national flag flies at the archaeological site of the Acropolis Hill in Athens November 3, 2011. REUTERS/John Kolesidis A Greek national flag flies at the archaeological site of the Acropolis Hill in Athens November 3, 2011. REUTERS/John Kolesidis By Noah Barkin BERLIN (Reuters) - Germany is pushing for Greece to relinquish control over its budget policy to European institutions as part of discussions over a second rescue package, a European source told Reuters on Friday. 'There are internal discussions within the Euro group and proposals, one of which comes from Germany, on how to constructively treat country aid programs that are continuously off track, whether this can simply be ignored or whether we say that's enough,' the source said. The source added that under the proposals European institutions already operating in Greece should be given 'certain decision-making powers' over fiscal policy. 'This could be carried out even more stringently through external expertise,' the source said. The Financial Times said it had obtained a copy of the proposal showing Germany wants a new euro zone 'budget commissioner' to have the power to veto budget decisions taken by the Greek government if they are not in line with targets set by international lenders. 'Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time,' the document said. Under the German plan, Athens would only be allowed to carry out normal state spending after servicing its debt, the FT said. 'If a future (bail-out) tranche is not disbursed, Greece cannot threaten its lenders with a default, but will instead have to accept further cuts in primary expenditures as the only possible consequence of any non-disbursement,' the FT quoted the document as saying. The German demands for greater control over Greek budget policy come amid intense talks to finalize a second 130 billion-euro rescue package for Greece, which has repeatedly failed to meet the fiscal targets set out for it by its international lenders. CHAOTIC DEFAULT THREAT Greece needs to strike a deal with creditors in the next couple of days to unlock its next aid package in order to avoid a chaotic default. 'No country has put forward such a proposal at the Eurogroup,' a Greek finance ministry official said on condition of anonymity, adding that the government would not formally comment on reports based on unnamed sources. The German demands are likely to prompt a strong reaction in Athens ahead of elections expected to take place in April. 'One of the ideas being discussed is to set up a clearly defined priorities on reducing deficits through legally binding guidelines,' the European source said. He added that in Greece the problem is that a lot of the budget-making process is done in a decentralized manner. 'Clearly defined, legally binding guidelines on that could lead to more coherence and make it easier to take decisions - and that would contribute to give a whole new dynamic to efforts to implement the program,' the source said. 'It is clear that talks on how to help Greece get back on the right track are continuing,' the source said. 'We're all striving to achieve a lasting stabilization of Greece,' he said. 'That's the focus of what all of us in Europe are working on right now.' (Reporting By Noah Barking; Additional reporting by George Georgiopoulos in Athens and; Adrian Croft in London; writing by Erik Kirschbaum; editing by Andrew Roche)

Signals Etisalat eyes mobile remittances in Gulf

Signals Etisalat eyes mobile remittances in Gulf Companies: AFN RELATED QUOTES Symbol Price Change AFN 0.00 0.00 Related Content A man walks past a sign at the headquarters of telecommunications company Etisalat in Dubai October 25, 2011. REUTERS/Jumana El HelouehView Photo A man walks past a sign at the headquarters of telecommunications company Etisalat in Dubai October 25, 2011. REUTERS/Jumana El Heloueh By Matt Smith DUBAI (Reuters) - UAE telecoms operator Etisalat (ABD:ETISALAT), which saw $1.8 billion moved over its network last year via money transfers, has sought regulatory approval to expand its financial services offerings in the Gulf region, home to millions of expatriates. Mobile money services allow customers to pay bills or make remittances using SMS text messages, often at a cheaper cost than through banks or money transfer firms. 'Remittances are a huge business opportunity,' George Held, director of products and services at Etisalat, told Reuters. 'The cost base for telecoms operators is much different than for banks and exchange houses. We do not need bricks and mortar branches, so our costs are lower and we can pass on this saving and offer better exchange rates and transaction fees.' The former monopoly was expected to focus on its home market and Saudi Arabia. Both countries have large expat populations and inbound annual remittances were worth about $36 billion combined in 2010, Held said. About 89 percent of the UAE's 8.3 million population are expatriates, while in Saudi Arabia just over a fifth of the 27 million population are foreigners. Etisalat's Egypt unit could also profit from an estimated $8 billion of inbound remittances from Egyptians working abroad. Etisalat has tied up with Western Union and MoneyGram International to allow money sent by mobile customers in the Middle East to be collected anywhere in the world. Aside from remittances, the operator hopes to offer salary payments, peer-to-peer domestic funds transfers and utility and shop payments. 'Remittances will be an extremely important part of our mobile money services. But it is not enough alone to drive service adoption, so we will offer a mix of services to make it very hard for customers not to get involved,' said Held. Etisalat already offers some of these services in six countries, including Afghanistan, Pakistan, Sri Lanka and Tanzania and plans to expand this to the 17 countries in which it operates in Asia, Africa and the Middle East. 'We want to introduce mobile money in the rest of our markets as soon as possible. It is not a technical issue, but ticking all the boxes from a regulatory, compliance and customer education point of view,' Held said. LESS MONEY, MORE LOYALTY Mobile money has taken off in parts of Africa, where a minority of people hold bank accounts and the banking infrastructure in rural areas remains limited. About 8 percent of Tanzania's gross domestic product is thought to go through mobile banking. Text-based financial services will not help stem a decline in global SMS revenues - seen dropping up to 40 percent over the next three years as users opt for alternative text services such as BlackBerry Messenger or WhatsApp - but it can improve customer loyalty. 'When people have a mobile wallet ... we believe they will stay with us for a long time,' Held said. 'When was the last time you changed your bank account?' Etisalat will face challenges in convincing customers in the Gulf region, who have easy access to banking and exchange houses, to switch. 'In this region, people are used to going to the bank for transactions - they like to get a receipt. It is not a game-changer for telecom operators' revenues,' said a regional telecoms analyst. Pedro Oliveira, partner at consultant Oliver Wyman, said telecoms operators face a tough task competing with conventional exchange houses. 'Low income workers in the Gulf count every penny. So, it is not convenience that matters, but cost,' he said. 'For expats with prepaid contracts wanting to send money home, they would have to buy prepaid cards to top up their phone balance and then send a text.'

Oil Exiting watchdog sees flaws in SEC's rulewriting

Oil Exiting watchdog sees flaws in SEC's rulewriting WASHINGTON, DC (Reuters) - In his final act before departing the Securities and Exchange Commission on Friday, the agency's inspector general, David Kotz, criticized how the agency analyzes the economic impact of some of its Dodd-Frank rules. Kotz's criticism, contained in a report, could have ramifications for the SEC, which has lost several court battles over the years because of flaws in how it demonstrates that the benefits of a rule outweigh its costs. 'We found that the extent of quantitative discussion of cost-benefit analyses varied among rulemakings,' Kotz wrote in his report. 'Based on our examination of several Dodd-Frank Act rulemakings, the review found that the SEC sometimes used multiple baselines in its cost-benefit analyses that were ambiguous or internally inconsistent.' Last year, U.S. business groups successfully convinced a federal appeals court to overturn one of the SEC's Dodd-Frank rules that aimed to empower shareholders to more easily nominate directors to corporate boards. In rejecting the rule, the court said the agency failed to properly weigh the economic consequences. Some of the business groups, such as the U.S. Chamber of Commerce, have since raised similar concerns with other rulemakings pending before the SEC. Congress passed the Dodd-Frank act in 2010 to more closely police financial markets and institutions after the 2007-2009 financial crisis. The legislation gives the SEC responsibility to write roughly 100 new rules. Although the SEC is not subject to an express statutory requirement to conduct a cost-benefit analysis of its rules, other laws do require the agency to consider the effects of its rules on capital formation, competition and efficiency. In addition, the SEC must also follow federal rulemaking procedures, such as providing the public with an opportunity to comment on its proposals. This is the second report Kotz has issued looking at the quality of the SEC's cost-benefit analysis. Both reports were issued after certain members of the Senate Banking Committee, including ranking Republican Richard Shelby, voiced concerns about whether regulators were adequately examining the economic impact of Dodd-Frank rules. To determine how well the SEC is faring, Kotz's office retained Albert Kyle, a finance professor at the University of Maryland's Robert H. Smith School of Business, to help carry out the review. Friday's report covered a sample of Dodd-Frank rulemakings, including a rule allowing shareholders a non-binding vote on compensation, several asset-backed securities rules and two proposals pertaining to the reporting of security-based swap data. Kotz's report was critical of the agency in a number of areas. In one instance, the report cites a memo in which former General Counsel David Becker gave his opinion that the SEC should do thorough cost-benefit analyses on rules that are not explicitly required by Congress. Rules mandated by Congress, however, generally would not need the same level of cost-benefit research, the memo said. The report suggested that the agency should reconsider these guidelines, or else it risks 'not fulfilling the essential purposes of such analyses.' SEC management, in a written response to the report, disagreed with that point. 'We believe Professor Kyle's opinion fails to appreciate both the practical limitations on the scope of cost-benefit a regulator can conduct, and the distinct roles of Congress and administrative agencies,' they said. 'We think it is entirely sensible ... for the staff to focus its attention and the commission's limited resources on matters that the commission has the authority to decide.' Kotz made other recommendations, including using a single consistent baseline in the cost-benefit analysis process and having economists provide more input. SEC spokesman John Nester declined to comment beyond the SEC comments in the report. (Reporting By Sarah N. Lynch; Editing by Steve Orlofsky, Gary Hill)

Earn Mexico says G20 to look at smoothing capital flows

Earn Mexico says G20 to look at smoothing capital flows Mexican Finance Minister Jose Antonio Meade speaks during an interview with Reuters in Mexico City February 14, 2012. REUTERS/Henry RomeroView Photo Mexican Finance Minister Jose Antonio Meade speaks during an interview with Reuters in Mexico City February 14, 2012. REUTERS/Henry Romero MONTEVIDEO (Reuters) - Mexico will include possible steps to blunt the impact of sharp capital flows on the Group of 20's policy agenda after discussions with Latin American neighbors, Finance Minister Jose Antonio Meade said on Sunday. Mexico, which holds the G20's rotating presidency this year, hosted a seminar about G20 priorities on the sidelines of meetings of Inter-American Development Bank. The bloc's only Latin American members are Brazil, Mexico and Argentina. Meade said via his Twitter account that suggestions from the region would help to enrich the work of the G20, including a push to ease the impact of capital inflows and outflows and tools to administer flows better. One suggestion Mexico would take on board was to 'develop a better capacity to absorb financial flows in domestic financial systems,' he said. Many delegates at the IADB meeting have expressed concern about a recent move toward protectionism, particularly by Brazil, which last week pushed Mexico to curb auto exports over the next three years to boost its industrial sector, hit by an appreciating currency. Brazil blames loose monetary policy in developed economies for the foreign cash flows that have pushed up the real and unleashed a flood of cheap imports, hurting the competitiveness of Brazilian industries. Officials present at the Montevideo meeting said Uruguay, Paraguay and other countries had pushed for Mexico to make sure the G20 addressed currencies and trade barriers. 'Mexico was asked to raise issues of protectionism, exchange rates and capital flows,' Paraguay Economy Minister Dionisio Borda said. Meade told Reuters the G20 remained committed to combating protectionism and there was no intention to change this. 'In every G20 meeting what we have done is reconfirm the promise to combat protectionism, recognizing that this is a measure which does not contribute to global growth,' he said. In the G20 leaders' November communiqué, the group said multilateral trade was important as a way to avoid protectionism and called for more exchange rate flexibility. Protectionism and capital flows were not specifically mentioned in the communiqué following the G20 finance ministers' meeting in Mexico City in March, but Mexico has said one of its G20 priorities is economic stabilization. (Reporting by Krista Hughes and Guido Nejamkis; Editing by Maureen Bavdek)

Earn Etisalat eyes mobile remittances in Gulf

Earn Etisalat eyes mobile remittances in Gulf Companies: AFN RELATED QUOTES Symbol Price Change AFN 0.00 0.00 Related Content A man walks past a sign at the headquarters of telecommunications company Etisalat in Dubai October 25, 2011. REUTERS/Jumana El HelouehView Photo A man walks past a sign at the headquarters of telecommunications company Etisalat in Dubai October 25, 2011. REUTERS/Jumana El Heloueh By Matt Smith DUBAI (Reuters) - UAE telecoms operator Etisalat (ABD:ETISALAT), which saw $1.8 billion moved over its network last year via money transfers, has sought regulatory approval to expand its financial services offerings in the Gulf region, home to millions of expatriates. Mobile money services allow customers to pay bills or make remittances using SMS text messages, often at a cheaper cost than through banks or money transfer firms. 'Remittances are a huge business opportunity,' George Held, director of products and services at Etisalat, told Reuters. 'The cost base for telecoms operators is much different than for banks and exchange houses. We do not need bricks and mortar branches, so our costs are lower and we can pass on this saving and offer better exchange rates and transaction fees.' The former monopoly was expected to focus on its home market and Saudi Arabia. Both countries have large expat populations and inbound annual remittances were worth about $36 billion combined in 2010, Held said. About 89 percent of the UAE's 8.3 million population are expatriates, while in Saudi Arabia just over a fifth of the 27 million population are foreigners. Etisalat's Egypt unit could also profit from an estimated $8 billion of inbound remittances from Egyptians working abroad. Etisalat has tied up with Western Union and MoneyGram International to allow money sent by mobile customers in the Middle East to be collected anywhere in the world. Aside from remittances, the operator hopes to offer salary payments, peer-to-peer domestic funds transfers and utility and shop payments. 'Remittances will be an extremely important part of our mobile money services. But it is not enough alone to drive service adoption, so we will offer a mix of services to make it very hard for customers not to get involved,' said Held. Etisalat already offers some of these services in six countries, including Afghanistan, Pakistan, Sri Lanka and Tanzania and plans to expand this to the 17 countries in which it operates in Asia, Africa and the Middle East. 'We want to introduce mobile money in the rest of our markets as soon as possible. It is not a technical issue, but ticking all the boxes from a regulatory, compliance and customer education point of view,' Held said. LESS MONEY, MORE LOYALTY Mobile money has taken off in parts of Africa, where a minority of people hold bank accounts and the banking infrastructure in rural areas remains limited. About 8 percent of Tanzania's gross domestic product is thought to go through mobile banking. Text-based financial services will not help stem a decline in global SMS revenues - seen dropping up to 40 percent over the next three years as users opt for alternative text services such as BlackBerry Messenger or WhatsApp - but it can improve customer loyalty. 'When people have a mobile wallet ... we believe they will stay with us for a long time,' Held said. 'When was the last time you changed your bank account?' Etisalat will face challenges in convincing customers in the Gulf region, who have easy access to banking and exchange houses, to switch. 'In this region, people are used to going to the bank for transactions - they like to get a receipt. It is not a game-changer for telecom operators' revenues,' said a regional telecoms analyst. Pedro Oliveira, partner at consultant Oliver Wyman, said telecoms operators face a tough task competing with conventional exchange houses. 'Low income workers in the Gulf count every penny. So, it is not convenience that matters, but cost,' he said. 'For expats with prepaid contracts wanting to send money home, they would have to buy prepaid cards to top up their phone balance and then send a text.'

Oil Bloomberg exec in talks to run New Corp's Dow Jones

Oil Bloomberg exec in talks to run New Corp's Dow Jones RELATED QUOTES Symbol Price Change NWSA 18.88 +0.06 TRI.TO 27.80 -0.14 APKN.PK 0.012 0.00 TRI 27.82 -0.10 (Reuters) - Rupert Murdoch's News Corp is in 'serious talks' to poach veteran Bloomberg LP executive Lex Fenwick to run its Dow Jones publishing business, which houses the Wall Street Journal, according to two people familiar with the discussions. Fenwick, who founded Bloomberg Ventures in 2008, was previously chief executive of Bloomberg LP, taking over from the company founder Michael Bloomberg in December 2001. Wall Street Journal reported news of the talks earlier on Friday. The top job at Dow Jones has been vacant since last July when then-Publisher and Chief Executive Les Hinton resigned in the wake of the phone-hacking scandal at News Corp's UK newspaper unit, which had previously run. Hinton told a UK parliamentary inquiry in 2009 that any problem with phone hacking at the company's papers was limited to one case. It was later revealed that thousands of ordinary people and celebrities had been the victims of the voice mail hacking. Hinton, who worked with News Corp for 52 years, was perhaps Murdoch's closest associate. Bloomberg and Dow Jones compete with Thomson Reuters. (Reporting By Yinka Adegoke; Editing by Steve Orlofsky)

Signals JP Morgan Earnings Highlight a Major Challenge for All Big Banks

Signals One of the hottest stocks in the land is limping into a long weekend this morning after earnings failed to impress investors, not only casting a shadow over JP Morgan (JPM), but stoking concerns about the entire Financial sector. Officially, JP Morgan's fourth quarter net income fell 23% to $3.7 billion, or $0.90 per share. While that met expectations, the biggest U.S. bank by assets stumbled on the revenue side, with a 9.6% decline that fell nearly a billion dollars short of estimates. 'They barely got over a very low bar,' says Charles Smith, CIO of Fort Pitt Capital and manager of the Fort Pitt Capital Total Return Fund (FPCGX), pointing out that the EPS estimate had come down about 20% in the past month alone. 'Their revenue growth was very weak,' he says, particularly at the investment bank were the top line shrank 30%. 'The fact that he (CEO Jamie Dimon) said he was proud of an 11% ROE is really telling,' Smith says in the attached clip, adding that revenue growth is going to be tough for all the universal banks. He believes slow revenue growth and shrinking ROE's (Return On Equity) is going to be the theme for the other big banks, many of which report results next week: Citigroup (C) and Wells Fargo (WFC) on Tuesday, Goldman Sachs (GS) on Wednesday, and Bank of America (BAC), Morgan Stanley (MS) and American Express (AXP) on Thursday. Another reason for the poor reaction is simply because JPM and the broader Diversified Financials Industry have become market leaders, after shedding 25% and finishing in the bottom of the pack for 2011. Even though 85% of analysts who follow JP Morgan rate it a ''buy'' with an average price target of $45, Smith is not interested. 'There's going to be a continued opaque nature for these earnings reports going out at least another year,' he says, adding that things like ongoing expenses for mortgage litigation and write downs will continue to muddy up the results. To be fair, while the 4th quarter numbers appear to reflect a ''very weak December,'' the powerful earnings story of the full year cannot be ignored, where JP Morgan netted a record $19 billion profit for 2011. Have the recently re-heated bank stocks gotten ahead of themselves or can they recover and resume their trek higher? Feel free to reach out to us on our Facebook page, on Twitter @MattNesto or @JeffMacke, or in the comment section below. Related Quotes: XLF 13.81 -0.11 -0.75% JPM 35.92 -0.93 -2.52% GS 98.96 -2.25 -2.22% BAC 6.61 -0.18 -2.65% MS 16.63 -0.54 -3.15% C 30.74 -0.86 -2.72% WFC 29.61 0.00 0.00% AXP 49.76 +0.11 +0.22% ^BKX 43.44 -0.17 -0.39%

Earn Europe hit by downgrade speculation

Earn ROME (AP) -- Europe's ability to fight off its debt crisis was again thrown into doubt Friday when the euro hit its lowest level in over a year and borrowing costs rose on expectations that the debt of several countries would be downgraded by rating agency Standard & Poor's. Stock markets in Europe and the U.S. plunged late Friday when reports of an imminent downgrade first appeared and the euro fell to a 17-month low. The fears of a downgrade brought a sour end to a mildly encouraging week for Europe's heavily indebted nations and were a stark reminder that the 17-country eurozone's debt crisis is far from over. Earlier Friday, Italy had capped a strong week for government debt auctions, seeing its borrowing costs drop for a second day in a row as it successfully raised as much as €4.75 billion ($6.05 billion). Spain and Italy completed successful bond auctions on Thursday, and European Central Bank president Mario Draghi noted 'tentative signs of stabilization' in the region's economy. A credit downgrade would escalate the threats to Europe's fragile financial system, as the costs at which the affected countries — some of which are already struggling with heavy debt loads and low growth — could borrow money would be driven even higher. The downgrade could drive up the cost of European government debt as investors demand more compensation for holding bonds deemed to be riskier than they had been. Higher borrowing costs would put more financial pressure on countries already contending with heavy debt burdens. In Greece, negotiations Friday to get investors to take a voluntary cut on their Greek bond holdings appeared close to collapse, raising the specter of a potentially disastrous default by the country that kicked off Europe's financial troubles more than two years ago. The deal, known as the Private Sector Involvement, aims to reduce Greece's debt by €100 billion ($127.8 billion) by swapping private creditors' bonds with new ones with a lower value, and is a key part of a €130 billion ($166 billion) international bailout. Without it, the country could suffer a catastrophic bankruptcy that would send shock waves through the global economy. Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos met on Thursday and Friday with representatives of the Institute of International Finance, a global body representing the private bondholders. Finance ministry officials from the eurozone also met in Brussels Thursday night. 'Unfortunately, despite the efforts of Greece's leadership, the proposal put forward ... which involves an unprecedented 50 percent nominal reduction of Greece's sovereign bonds in private investors' hands and up to €100 billion of debt forgiveness — has not produced a constructive consolidated response by all parties, consistent with a voluntary exchange of Greek sovereign debt,' the IIF said in a statement. 'Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach,' it said. Friday's Italian auction saw investors demanding an interest rate of 4.83 percent to lend Italy three-year money, down from an average rate of 5.62 percent in the previous auction and far lower than the 7.89 percent in November, when the country's financial crisis was most acute. While Italy paid a slightly higher rate for bonds maturing in 2018, which were also sold in Friday's auction, demand was between 1.2 percent and 2.2 percent higher than what was on offer. The results were not as strong as those of bond auctions the previous day, when Italy raised €12 billion ($15 billion) and Spain saw huge demand for its own debt sale. 'Overall, it underscores that while all the auctions in the eurozone have been battle victories, the war is a long way from being resolved (either way),' said Marc Ostwald, strategist at Monument Securities. 'These euro area auctions will continue to present themselves as market risk events for a very protracted period.' Italy's €1.9 trillion ($2.42 trillion) in government debt and heavy borrowing needs this year have made it a focal point of the European debt crisis. Italy has passed austerity measures and is on a structural reform course that Premier Mario Monti claims should bring down Italy's high bond yields, which he says are no longer warranted. Analysts have said the successful recent bond auctions were at least in part the work of the ECB, which has inundated banks with cheap loans, giving them ready cash that at least some appear to be using to buy higher-yielding short-term government bonds. Some 523 banks took €489 billion in credit for up to three years at a current interest cost of 1 percent.

Earn Student Loan Crisis Looms: FICO Risk Survey

Earn Daily Ticker Despite recent headlines cheering positive trends in the economy, there is still much to be concerned about, according to FICO's new quarterly survey of bank risk professionals. More than two-thirds of risk managers are seriously concerned about the debt loads held by students in the country. 67% of respondents believe delinquencies of student loans will rise, up a considerable 19% from the previous survey. 'They are worried about the amount of student loans that are out there and the ability of those students to repay them,' says Mark Greene, CEO of FICO, which provides credit scores used by both consumers and creditors and is widely considered the industry standard. With tuition prices on the rise each and every year, it is no surprise that the total amount borrowed is also on the upswing. The student who graduated in the class of 2009 had an average of $24,000 in student loans. But that's just the average. Some students are accountable for sums totaling $100,000. (See: The Economic Agony of Today's Twenty-Somethings) The Federal Reserve reported last year that student debt has actually surpassed credit card debt and predicts the total amount owed has topped $1 trillion. Greene's advice to students is: 'Be careful what you borrow.' 'Clearly education has a great return on investment so there is no suggestion you should avoid taking out loans, but be careful what you are getting into,' he says. 'Manage your student loans as carefully as you would your mortgage, your credit card or something else.' Other problem areas listed in the survey include credit card debt and mortgage debt. Credit card debt increased 8.5% to $5.6 billion in November from October, the biggest gain since March 2008. 45% of risk managers surveyed expect credit card delinquencies to rise while 21% expect a decline. And 54% of respondents believe credit card balances will rise. Those figures are more pessimistic than the previous quarter. As for mortgage debt, 47% of risk managers predict mortgage delinquencies will rise while 13% expect to see a decrease. 'If you are looking for risk managers to declare that we've turned the corner, they are not declaring that yet,' says Greene. Do you think the economy is improving or still has a long way to go? More from The Daily Ticker: Forget Harvard and a 4-Year Degree, You Can Make More as a Plumber in the Long Run, Says Prof. Kotlikoff Brain Drain: Most College Students Learn Next to Nothing, New Study Says Jame's Altucher's 8 Alternatives to College Related Quotes: ^GSPC 1,292.18 -0.30 -0.02% BAC 6.76 -0.11 -1.60% C 31.36 +0.09 +0.29% GS 98.96 -0.80 -0.80% JPM 36.44 -0.22 -0.60% WFC 29.54 -0.08 -0.29% PNC 61.51 +0.21 +0.34% FAZ 31.80 +0.23 +0.72% FAS 75.30 -0.53 -0.70% XLF 13.83 -0.04 -0.26% ^DJI 12,432.54 -16.91 -0.14% DFS 26.16 +0.30 +1.16% V 100.99 +1.88 +1.90% MA 342.76 +1.29 +0.38% MS 16.92 -0.18 -1.05%

Oil Greece, creditors laboriously piece together debt deal

Oil Greece, creditors laboriously piece together debt deal ReutersReuters – 1 hour 26 minutes ago Companies: Thomson Reuters Corporation RELATED QUOTES Symbol Price Change TRI 27.82 -0.10 By Renee Maltezou and Lefteris Papadimas ATHENS (Reuters) - Greece and its private creditors head back to the negotiating table on Saturday to put together the final pieces of a long-awaited debt swap agreement needed to avert an unruly default. After weeks of muddling through round after round of inconclusive talks, the negotiations appear to be in their final phase, with both sides hoping to secure a preliminary deal before Monday's European Union summit. Prime Minister Lucas Papademos was expected to meet bankers' chief negotiator Charles Dallara at around 1330 GMT (8:30 a.m. EST) on Saturday, before meeting inspectors from the 'troika' of foreign lenders pressing Athens to step up painful reforms. 'Today will be another tough day,' said George Karatzaferis, leader of the far-right LAOS party, one of three parties in Papademos's emergency coalition government. 'We will see whether we can bear the burden that lies ahead.' The debt swap, in which private creditors are to take a 50 percent cut in the nominal value of their Greek bond holdings in exchange for cash and new bonds, is a prerequisite for the country to secure a 130-billion-euro rescue package. Papademos told Reuters in an interview on Friday he expected the debt talks to be concluded within days. 'We made significant progress over the last few weeks and in the last few days in particular. We are trying to conclude the discussions as quickly as possible. I am quite optimistic an agreement will be reached in the coming days,' he said. But concern has grown that the deal may not do enough to get the country's debt reduction plan back on track, and that Greece's European partners will be forced to stump up funds to cover the shortfall. The German news magazine Der Spiegel reported on Saturday that Greece's international lenders thought Athens would need 145 billion euros of public money from the euro zone for its second bailout rather than the planned 130 billion euros. The magazine said the extra money was needed because of the deteriorating economic situation in Greece, echoing a Reuters report on Thursday. Athens also faces problematic talks with the 'troika' of foreign lenders - the European Commission, IMF and European Central Bank - who have warned it needs to do more to drive through painful reforms before they dole out any more money. 'It's all very dense, difficult and crucial,' a Greek finance ministry official said. 'There is optimism because the country needs to survive and we need to protect its citizens because they have suffered a lot.' Athens and its creditors have broadly agreed that new bonds under the swap would probably have a 30-year maturity and a progressive interest rate. The deal is aimed at chopping 100 billion euros off Greece's crushing 350-billion-euro debt load. But they have wrangled for weeks over the interest rate Greece must pay on the new bonds and pressure has grown in recent days on the European Central Bank and other public creditors to accept a cut in the value of their Greek bond holdings like the private sector creditors. A debt deal must be sealed in about three weeks as Greece has to repay 14.5 billion euros of debt on March 20. Otherwise Greece will sink into an uncontrolled default that might spread turmoil across the euro zone. Papademos promised on Friday this would not happen. 'Greece will not default,' he said. International Monetary Fund Managing Director Christine Lagarde said on Saturday that euro zone members were making progress to overcome their crisis but must do more to strengthen their financial firewall, adding that the IMF was ready to help. 'There is progress as we see it,' Lagarde told a panel discussion at the World Economic Forum in Davos. 'But it is critical that the euro zone members actually develop a clear, simple, firewall that can operate both to limit the contagion and to provide this sort of act of trust in the euro zone so that the financing needs of that zone can actually be met.' Senior euro zone officials have expressed optimism on the Greek debt deal, though previous predictions of an imminent agreement have failed to become reality. Greece is in its fifth year of recession, and hopes of an end to the crisis in the near term have virtually gone, because of the combination of squabbling politicians, rising social anger and its inability to get its debt load under control. Germany is pushing for Greece to relinquish control over its budget policy to European institutions as part of discussions over a second rescue package, a European source told Reuters on Friday. Greece said such a move was out of the question, adding that a similar proposal had been made in the past by a Dutch minister without getting anywhere. 'There is no way we would accept such a thing,' a Greek government official told Reuters. (Additional reporting by Renee Maltezou, Writing by Deepa Babington; editing by Tim Pearce)

Earn Citigroup cut investment bank bonuses by 30 percent: report

Earn Citigroup cut investment bank bonuses by 30 percent: report (Reuters) - Citigroup (NYSE:C - News) has cut bonuses for its investment banking division by about 30 percent on average, Bloomberg said, citing a person briefed on the matter. Some businesses within the securities and banking unit had bonuses reduced by as much as 70 percent, Bloomberg reported. Citigroup was not immediately available for comment. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Steve Orlofsky)

Oil Japan sees upward pressure on yen waning

Oil Japan sees upward pressure on yen waning Foreign exchange dealers are seen beneath an electronic board displaying the Japanese Yen's exchange rate against the U.S. dollar at a foreign exchange trading company in Tokyo February 22, 2012. REUTERS/Kim Kyung-HoonEnlarge Photo Foreign exchange dealers are seen beneath an electronic board displaying the Japanese Yen's exchange rate against the U.S. dollar at a foreign exchange trading company in Tokyo February 22, 2012. REUTERS/Kim Kyung-Hoon By Tetsushi Kajimoto MEXICO CITY (Reuters) - A senior Japanese Finance Ministry official said the upward pressure on the yen was easing and he saw nothing strange in the currency's movements as it pulls away from record highs below 80 yen versus the dollar. The official, speaking after the first day of the weekend gathering of Group of 20 finance ministers and central bankers, said the yen was not discussed at the meeting which was dominated by talks on the euro-zone sovereign debt crisis. But the G20 did discuss volatility in currencies as well as crude oil prices, the official said, adding that these issues may be mentioned in the communique expected at the end of the meeting on Sunday. Brent crude futures settled near a 10-month high above $125 a barrel on Friday on heightened concerns over tensions with Iran about its nuclear program. Japanese authorities will continue to respond to excess volatility in currencies, he added, signaling readiness to intervene if speculators push up the yen too high again to deal a blow to the export-reliant economy. 'We hear opinions overall, including at deputies' meeting, that volatility exists in the foreign exchange market, so I expect (G20) may mention that volatility warants close monitoring,' the official said. 'We have said that (the yen's) moves have been excessive including before and after (last year's) earthquake, which was not reflecting economic fundamentals. But I see nothing strange in the current movement,' he added. The yen, meanwhile, tumbled across the board, a downtrend that started with the Bank of Japan's recent monetary easing. Japan's trade deficit, widening interest rate differentials with the United States favoring the dollar and rising crude oil prices also have hurt the yen's prospects. The dollar hit a fresh 7-1/2-month high of 81.062 yen on trading platform EBS and was last 80.990, away from 75.31 yen hit last October when Japan intervened heavily to protect exporters and drew criticism from the United States. The Bank of Japan, along with the European Central Bank and the U.S. Federal Reserve, is taking unconventional steps to boost the economy. The BOJ boosted asset purchases by 10 trillion yen on February 14 and pledged to keep ultra-easy policy until a 1 percent inflation goal is in sight. Bank of Japan Governor Masaaki Shirakawa said on Saturday that policymakers were also closely watching the effects of monetary easing on crude prices. But he said he did not see monetary easing as a big factor and the recent spike was more due to geopolitical tensions and some bright spots in advanced economies after the New Year. 'Generally speaking, we'll closely watch effects and side-effects of monetary easing,' he said. (Additional writing by Krista Hughes; Editing by Ed Lane)

Earn Consumer Comfort Highest in Six Months

Earn Consumer Comfort Highest in Six Months Consumer confidence in the U.S. last week reached the highest level since July as the improving job market helped allay pessimism. The Bloomberg Consumer Comfort Index was minus 44.7 in the period ended Jan. 8 from minus 44.8 the prior week. As recently as October, the index registered its lowest readings since the 2007-2009 recession, making 2011 the second-worst year in 25 years of data. It's since increased in four of the past five weeks. 'Considering where it's been, the trend is a welcome one,' Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. 'Sentiment is hardly on a predictable path, given factors including the uncertainty of the 2012 presidential election, volatility in global markets and economic question marks from Europe to China.' Less unemployment and growing payrolls may be lifting consumers' moods, providing the spark for increases in consumer spending, which accounts for about 70 percent of the economy. Nonetheless, gasoline prices that are once again rising and wage gains that fail to keep pace with inflation may be obstacles to greater improvement in confidence. Other reports today showed retail sales rose less than forecast in December and claims for jobless benefits climbed more than projected in the first week of the year. Retail Sales Purchases increased 0.1 percent last month after a 0.4 percent advance in November that was more than initially reported, Commerce Department figures showed. Economists forecast a 0.3 percent December rise, according to the median estimate in a Bloomberg News survey. Purchases excluding automobiles fell 0.2 percent, the first decline since May 2010. The number of applications for unemployment benefits climbed by 24,000 to 399,000 in the week ended Jan. 7, Labor Department figures showed. The median forecast of 46 economists in a Bloomberg survey projected 375,000. Stocks rose as sales of government securities in Spain and Italy eased concern the countries would struggle to finance their debts. The Standard & Poor's 500 Index climbed 0.1 percent to 1,293.76 at 9:40 a.m. in New York. The comfort survey's gauge of Americans' views of the current state of the economy rose to minus 82.1 last week from minus 82.9 in the prior period. The buying climate index held at minus 49.4, and the measure of personal finances decreased to minus 2.6 from minus 2.2. The gain in the cumulative Bloomberg index last week was within the survey's three-point margin of error. More Jobs Better employment opportunities are probably holding up confidence. Payrolls increased by 200,000 in December, and the jobless rate dropped to 8.5 percent, the lowest since February 2009, a Labor Department report showed last week. Employers added 1.64 million workers in 2011, surpassing the prior year's 940,000 advance and the biggest gain since 2006. Sentiment has been improving among lower-income Americans. The index for those earning less than $15,000 per year increased to the highest level since October, and those making up to $24,999 were the most optimistic since February. The ebbing of pessimism was also evident among older households. The measure of confidence among those older than 65 rose to minus 39.9, the best reading since April. Brighter moods may help drive consumer spending in 2012 following the holiday shopping season. 'Extremely Pleased' 'We are extremely pleased with our December sales results as we significantly exceeded our expectations,' Sherry Lang, a spokeswoman for TJX Cos. said in Jan. 5 conference call. Sales at the Framingham, Massachusetts-based retailer increased 8 percent last month. 'Further, we entered January with very lean inventories and the flexibility to ship fresh merchandise at great values to our stores.' The gain in the Bloomberg index parallels improvement in other surveys. The Conference Board's confidence gauge increased in December to the highest level since April. That same month the Thomson Reuters/University of Michigan index of consumer confidence rose to the highest level since June. Nonetheless, rising gasoline prices may constrain sentiment. The cost of a regular gallon of fuel at the pump climbed to $3.38 yesterday, up 5.5 percent from a 10-month low reached on Dec. 20, according to data from AAA, the nation's largest auto group. 'While the recent trend in consumer confidence is encouraging, risks remain,' said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. 'The recent rise in gasoline prices is likely to act as a restraint on improving consumer confidence in January.' Annual Averages Bloomberg's comfort index, which began in December 1985, averaged minus 46.8 for all of last year, second only to 2009's minus 47.9 as the worst year on record. The gauge averaged minus 45.7 for 2010. The Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers 18 years old and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses for each measure is subtracted from the share of positive views. The results are then summed and divided by three. The most recent reading is based on the average of responses over the previous four weeks. The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. Field work for the index is done by SSRS/Social Science Research Solutions in Media, Pennsylvania. To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Forex Top 5 Global Mutual Funds

Forex Top 5 Global Mutual Funds Companies: Thornburg Global Opportunities A Artio Global Equity A Oppenheimer Global Opportunities A RELATED QUOTES Symbol Price Change THOAX 14.34 0.00 BJGQX 33.60 -0.06 OPGIX 27.86 +0.50 MWOFX 24.77 -0.12 ICDAX 11.66 +0.06 The fortunes of U.S. equity markets continue to be a key determinant of the health of the global economy. However, their dominance has receded significantly over the years and a world of exciting opportunities has emerged in global markets. Moreover, research has shown that a portfolio with a combination of domestic and foreign securities produces greater returns over the long term. Global funds allow investors to hold an optimum combination of international and domestic investments without incurring the costs of holding such securities individually. Below we will share with you 5 top rated global mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all global funds, then click here. Thornburg Global Opportunities A (NASDAQ:THOAX - News) seeks capital growth over the long term. The fund invests in a wide range of equity securities worldwide. This includes common and preferred stocks, real estate investment trusts and other equity trusts. The global mutual fund has a five year annualized return of 2.1%. The global mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.48% compared to a category average of 1.44%. Artio Global Equity A (NASDAQ:BJGQX - News) invests the majority of its assets in companies worldwide. Under normal circumstances, not less than 40% of its assets are invested in at least three foreign countries. A maximum of 35% of its assets may be utilized to purchase emerging market securities. The global mutual fund has a three year annualized return of 10.04%. Rudolph-Riad Younes is the fund manager and he has managed this global mutual fund since 2004. Oppenheimer Global Opportunities A (NASDAQ:OPGIX - News) seeks capital growth as well as current income. The fund invests in a wide range of equity securities worldwide. The fund focuses on acquiring stocks, but may also purchase debt securities. The global mutual fund has a ten year annualized return of 8.53%. As of November 2011, this global mutual fund held 100 issues, with 5.24% of its total assets invested in Advanced Micro Devices Inc. MFS Global Growth A (NASDAQ:MWOFX - News) invests in both domestic and foreign securities, as well as emerging market securities. The fund may invest a substantial part of its assets in a relatively small number of countries. The global mutual fund returned 2.36% in the last one year period. The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.53% compared to a category average of 1.44%. Ivy Cundill Global Value A (ICDAX) seeks capital growth. The fund purchases both domestic and foreign equity securities. Not more than 20% of its assets are invested in debt securities issued by companies which have filed for bankruptcy or are likely to do so shortly. The global mutual fund has a three year annualized return of 8.15%. The fund manager is James Thompson and he has managed this global mutual fund since 2009. To view the Zacks Rank and past performance of all global mutual funds, then click here. About Zacks Mutual Fund Rank By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.

Forex JP Morgan Earnings Highlight a Major Challenge for All Big Banks

Forex One of the hottest stocks in the land is limping into a long weekend this morning after earnings failed to impress investors, not only casting a shadow over JP Morgan (JPM), but stoking concerns about the entire Financial sector. Officially, JP Morgan's fourth quarter net income fell 23% to $3.7 billion, or $0.90 per share. While that met expectations, the biggest U.S. bank by assets stumbled on the revenue side, with a 9.6% decline that fell nearly a billion dollars short of estimates. 'They barely got over a very low bar,' says Charles Smith, CIO of Fort Pitt Capital and manager of the Fort Pitt Capital Total Return Fund (FPCGX), pointing out that the EPS estimate had come down about 20% in the past month alone. 'Their revenue growth was very weak,' he says, particularly at the investment bank were the top line shrank 30%. 'The fact that he (CEO Jamie Dimon) said he was proud of an 11% ROE is really telling,' Smith says in the attached clip, adding that revenue growth is going to be tough for all the universal banks. He believes slow revenue growth and shrinking ROE's (Return On Equity) is going to be the theme for the other big banks, many of which report results next week: Citigroup (C) and Wells Fargo (WFC) on Tuesday, Goldman Sachs (GS) on Wednesday, and Bank of America (BAC), Morgan Stanley (MS) and American Express (AXP) on Thursday. Another reason for the poor reaction is simply because JPM and the broader Diversified Financials Industry have become market leaders, after shedding 25% and finishing in the bottom of the pack for 2011. Even though 85% of analysts who follow JP Morgan rate it a ''buy'' with an average price target of $45, Smith is not interested. 'There's going to be a continued opaque nature for these earnings reports going out at least another year,' he says, adding that things like ongoing expenses for mortgage litigation and write downs will continue to muddy up the results. To be fair, while the 4th quarter numbers appear to reflect a ''very weak December,'' the powerful earnings story of the full year cannot be ignored, where JP Morgan netted a record $19 billion profit for 2011. Have the recently re-heated bank stocks gotten ahead of themselves or can they recover and resume their trek higher? Feel free to reach out to us on our Facebook page, on Twitter @MattNesto or @JeffMacke, or in the comment section below. Related Quotes: XLF 13.81 -0.11 -0.75% JPM 35.92 -0.93 -2.52% GS 98.96 -2.25 -2.22% BAC 6.61 -0.18 -2.65% MS 16.63 -0.54 -3.15% C 30.74 -0.86 -2.72% WFC 29.61 0.00 0.00% AXP 49.76 +0.11 +0.22% ^BKX 43.44 -0.17 -0.39%

Oil Obama seeks power to merge agencies

Oil WASHINGTON (AP) -- President Barack Obama on Friday took aim at his government's own messy bureaucracy, prodding Congress to give him greater power to merge agencies and promising he would start by collapsing six major economic departments into one. Pressing Republicans on one of their own political issues, Obama said it was time for an 'effective, lean government.' Obama wants the type of reorganizational authority last held by a president when Ronald Reagan was in office. Obama's version would be a so-called consolidation authority allowing him to propose only mergers that promise to save money and shrink government. The deal would help Obama considerably by entitling him to an up-or-down vote from Congress in 90 days. Still, final say would remain with lawmakers, both on whether to grant Obama this fast-track authority and then in deciding whether to approve any of his specific ideas. 'We can do this better,' Obama declared in an event with business owners at the White House, even presenting slides to help make his case. 'So much of the argument out there all the time is up at 40,000 feet, these abstract arguments about who's conservative or who's liberal,' Obama said. 'Most Americans — and certainly most small business owners — you guys are just trying to figure out how do we make things work, how do we apply common sense. And that's what this is about.' In an election year and a political atmosphere of tighter spending, Obama's move is about more than improving a giant bureaucracy. He is attempting to directly counter Republican arguments that he has presided over the kind of government regulation, spending and debt that can undermine the economy — a dominant theme of the emerging presidential campaign. Republicans have often aligned themselves with smaller government. So politically, Obama is trying to put the onus on Republicans in the House and Senate to show why they would be against the pursuit of leaner government. From Capitol Hill, a spokesman for Sen. Mitch McConnell of Kentucky, the top Republican in the Senate, pledged Obama's plan would get a careful review. But the spokesman, Don Stewart, also said: 'After presiding over one of the largest expansions of government in history, and a year after raising the issue in his last State of the Union, it's interesting to see the president finally acknowledge that Washington is out of control.' Obama has an imperative to deliver. He made the promise to come up with a smart reorganization of the government in his last State of the Union speech last January. At the time, Obama grabbed attention by pointing out the absurdity of government inefficiency. In what he called his favorite example, Obama said: 'The Interior Department is in charge of salmon while they're in fresh water, but the Commerce Department handles them when they're in saltwater. And I hear it gets even more complicated once they're smoked.' The White House said the problem is serious for consumers who turn to their government for help and often do not know where to begin. Not in decades has the government undergone a sustained reorganization of itself. Presidents have tried from time to time, but each part of the bureaucracy has its own defenders inside and outside the government, which can make merger ideas politically impossible. That's particularly true because 'efficiency' is often another way of saying people will lose their jobs. Obama hopes to enhance his chances by getting Congress to give him the assurance of a clean, relatively speedy vote on any of his proposals. There is no clear sign that Obama would get that cooperation. He spent much of 2011 in utter gridlock with Republicans in Congress. In the meantime, Obama announced Friday that Karen Mills, the administrator of the Small Business Administration, would be elevated to Cabinet-level rank. But her job would essentially disappear if Obama has his way. If he gets the new fast-track power to propose legislation, Obama's first project would be to combine six major operations of the government that focus on business and trade. They are: the Commerce Department's core business and trade functions; the Small Business Administration; the Office of the U.S. Trade Representative; the Export-Import Bank; the Overseas Private Investment Corporation; and the Trade and Development Agency. The goal would be one agency designed to help businesses thrive. The White House says 1,000 to 2,000 jobs would be cut, but the administration would do so through attrition; that is, as people routinely leave their jobs over time. The administration said the merger would save $3 billion over 10 years by getting rid of duplicative overhead costs, human resources divisions and programs. The name and potential secretary of the new agency have not been determined. The point, the White House says, is not just making the government smaller but better by saving people time and eliminating bureaucratic nightmares. The idea for the consolidated business agency grew out of discussions with hundreds of business leaders and agency heads over the last several months. Brendan Buck, a spokesman for House Speaker John Boehner, R-Ohio, said streamlining government was always a potentially good idea but expressed wariness about whether Obama's plan would really help business. 'American small businesses are more concerned about this administration's policies than from which building in Washington they originate,' Buck said. 'We hope the president isn't simply proposing new packaging for the same burdensome approach.' According to the White House, presidents held such a reorganizational authority for about 50 years until it ran out during Reagan's presidency in 1984. Obama has a series of other ideas about consolidating departments across the government, to be rolled out later.