The Young Raging Bull

U.S. economy growing at fastest pace in a year

youngragingbull — Sat, 28 Jan 2012 00:15:12 +0000

The U.S. economy grew at a 2.8 percent annual rate in the final three months of last year, the fastest growth in 2011.

Americans spent more on cars and trucks, and companies built up their stockpiles. But growth in the October-December quarter — and all of last year — was held back by the biggest annual government spending cuts in four decades.

The Commerce Department said Friday that the economy grew just 1.7 percent last year, roughly half of the growth in 2010 and the worst since the recession.

In the final three months of last year, consumer spending grew at a 2 percent annual rate. That’s up modestly from the third quarter.

Much of the growth was powered by a 14.8 percent surge in sales of autos and other long-lasting manufactured goods. Incomes, which have been weak all year because of high unemployment, grew at a modest 0.8 percent rate. That followed two straight quarters of declining incomes.

Source: CBC

Fitch downgrades five eurozone members

youngragingbull — Sat, 28 Jan 2012 00:10:08 +0000

Fitch Ratings on Friday downgraded eurozone members Italy, Spain, Belgium, Cyprus and Slovenia, while affirming Ireland’s credit rating as it completed a ratings review that was announced last month.

Fitch cut Italy to A minus from A plus, while Spain was downgraded to A from AA minus. Belgium was cut to AA from AA plus, Cyprus was cut to BBB minus from BBB and Slovenia was downgraded to A from AA minus.

Ireland’s BBB plus rating was affirmed.

All six countries continue to carry a negative outlook, which means there is a slightly greater than 50% chance of a further downgrade over the next two years, Fitch said.

“In Fitch’s opinion, the eurozone crisis will only be resolved as and when there is broad economic recovery. It is evident that further substantial reforms of the governance of the eurozone will be required to secure economic and financial stability, including greater fiscal integration,” the ratings firm said.

Facebook to file for IPO next week: WSJ

youngragingbull — Sat, 28 Jan 2012 00:09:05 +0000

Facebook may file documents for a $10 billion initial public offering on Wednesday, the Wall Street Journal reported Friday.

The social networking giant is looking at a valuation of $75 billion to $100 billion, the Journal reported, citing an unnamed source.

Morgan Stanley is close to winning the IPO deal, while Goldman Sachs is expected to play a key role, according to the Journal report.

Gold tops $1,715/ounce on Fed pledge

youngragingbull — Thu, 26 Jan 2012 09:18:16 +0000

Gold futures rose further above the $1,700-an-ounce level in electronic trading Thursday, as a weakened U.S. dollar and the Federal Reserve’s projection of low interest rates until 2014 enhanced the precious metal’s allure.

Gold February futures, which rose $35.60 to end just above $1,700 an ounce on the Comex division of New York Mercantile Exchange overnight, added another $12.20, or 0.7%, to $1,712.30 an ounce during Asian trading hours

Source: MW

Fed unlikely to raise rates until at least 2014

youngragingbull — Thu, 26 Jan 2012 04:15:45 +0000

IMF: Canada’s growth to slow

youngragingbull — Wed, 25 Jan 2012 09:33:41 +0000

The International Monetary Fund Tuesday lowered its forecast for Canadian economic growth this year, predicting it will be dragged down by a cascading crisis in Europe and weakening conditions elsewhere.

In its latest economic outlook, the Washington-based monitor of global financial affairs predicted the Canadian economy will likely now grow by only 1.7 percent — three notches lower than the Bank of Canada’s estimate just last week — and two-tenths of a point lower than its own previous call in September.

And the IMF doesn’t see much improvement in 2013, forecasting 2 percent growth, again lower than the central bank’s prediction of 2.8 percent.

The IMF also predicted global growth of 3.25 percent, slower than the 4 percent pace it projected in September.

Source: CBC

Word on the Street: Hedge fund settles with SEC for $9 million

youngragingbull — Mon, 23 Jan 2012 20:50:57 +0000

Hedge fund Diamondback Capital Management LLC agreed to pay more than $9 million to settle with the Securities and Exchange Commission over insider-trading charges brought by the commission last week, according to the agency Monday.

The SEC said that as part of the settlement, Diamondback agreed to give up about $6 million of allegedly ill-gotten gains and pay a $3 million civil penalty.

Research In Motion drops CEOs: WSJ

youngragingbull — Mon, 23 Jan 2012 04:14:53 +0000

Research in Motion Ltd., maker of the BlackBerry-line of smartphones, will undertake a board and management reshuffle that will see the firm’s co-chief executives give up the top job, the Wall Street Journal reports.

Jim Balsillie and Mike Lazaridis will relinquish their roles as joint chief executives to RIM operating chief Thorsten Heins, according to the report.

Balsillie and Lazaridis will continue as directors and shareholders.

Greek debt swap talks drag into the weekend

youngragingbull — Sun, 22 Jan 2012 01:04:10 +0000

U.S. stocks up for third week

youngragingbull — Sat, 21 Jan 2012 04:44:41 +0000

U.S. stocks finished Friday near session highs, with the S&P 500 making a late about-face to end in the green, lifted by well-received results from Microsoft, IBM and Intel.

The major indexes rose 2% to nearly 3% for the week, the third straight week of gains.

The Dow Jones Industrial Average ended up 96.50 points, or 0.8%, at 12,720.48, led by a 5.7% rally in Microsoft and a 4.4% gain in IBM shares.

The S&P 500 ended up 0.9 point, or 0.1%, at 1,315.38. The Nasdaq Composite lost 1.63 points, or 0.1%, to 2,786.70.

The broader indexes were dragged by an 8.4% drop in Google shares.