Kerri Shannon
How This Indian Wedding Tradition Drives Global Gold Demand
An Indian wedding tradition dating back thousands of years is more than a simple cultural practice – it has become one of the biggest drivers of global gold demand.
In a Feb. 12 CBS News' "60 Minutes" report, correspondent Bryon Pitts took a look at how the Indian wedding tradition of draping the bride in gold jewels has propelled India to be the biggest source of global gold demand. India is now No. 1 in gold consumption of jewelry as well as physical bars and coins.
India accounts for about 32% of the global gold market with half of the gold Indians buy spent on jewelry for the 10 million weddings held there each year.
As a result, gold prices typically rise ahead of wedding season as families prepare.
"The demand for gold out of India is fundamental for the health of the industry," Ajay Mitra of the World Gold Council told Pitts. "If India sneezes, the gold industry will catch a cold."
Congress Insider Trading: Rep. Spencer Bachus, You're Up
As Washington works on finalizing a Congress insider trading ban, Rep. Spencer Bachus, R-AL, could be the first member to be penalized for profiting from power.
The Office of Congressional Ethics is investigating Bachus, the chairman of the House Financial Services Committee, for possibly violating insider trading laws, The Washington Post reported Thursday.
Activity disclosed on Bachus' annual financial disclosure forms triggered the investigation, which started late last year.
This is the first insider trading case involving a member of Congress. It was announced days after the House approved the Stop Trading on Congressional Knowledge (STOCK) Act, which basically says that members of Congress must obey insider trading laws.
The House voted 417-2 to approve the bill; the Senate approved it last week in a 96-3 vote. It took more than two months to get the bill through both houses. The House amended the Senate bill, meaning the process still has to go through another step: a conference to produce a common version.
Bachus issued a statement Thursday.
"The Office of Congressional Ethics has requested information and I welcome this opportunity to present the facts and set the record straight," Bachus said in a statement released by his spokesman, Tim Johnson.
Mortgage Settlement Just the Start of Trouble for Bank of America (NYSE: BAC) and Friends
The biggest U.S. mortgage lenders, including Bank of America Corp. (NYSE: BAC), finally reached a $25 billion mortgage settlement to help homeowners – but the banks still face years of legal battles and billions of dollars in costs.
The provisions to the mortgage settlement include:
- $5 billion total in cash penalties, payable to borrowers, states, and the federal government.
- $20 billion in additional aid, through reducing homeowners' loan balances, and refinancing for underwater homeowners who are current on their loans.
Bank of America will pay an additional $1 billion to settle claims that it inflated appraisal prices from 2003-2009.
The multi-billion dollar mortgage settlement ends state and federal investigations into improper foreclosure procedures (like robo-signing), but banks can still get hit with criminal enforcement actions due to lending practices and mortgage-related securities.
"It's a big check with narrow immunity," Paul Miller, an analyst with FBR Capital Markets and a former Federal Reserve examiner, told Bloomberg News. "You get the state attorneys general off your back, but you're not getting immunity from securitizations, which could come with their own steep cost down the road."
Will LinkedIn Corp. (NYSE: LNKD) Earnings Follow Groupon's Dismal Lead?
LinkedIn Corp. (NYSE: LNKD) reported earnings today (Thursday) that beat expectations, further distancing it from struggling Groupon Inc. (Nasdaq: GRPN) and raising the bar for competitors.
LinkedIn's revenue for the fourth quarter was $167.7 million, an 105% increase compared to $81.7 million for the same period the year before. That beat The Street estimate of $159.7 million.
Net income rose 30% to 6 cents per share or $6.9 million, up from $5.3 million a year ago, according to FactSet. Non-GAAP net income for the quarter was $13.3million or 12 cents per share.
LinkedIn had warned the fourth quarter could result in another loss due to costs of hiring more workers for new projects to grow its subscriber base. LinkedIn, however, usually gives conservative guidance and beats estimates, which it has done for the past few quarters.
LinkedIn Corp. (NYSE: LNKD) Gives Strong Guidance
LinkedIn scored half of total fourth-quarter revenue from hiring solutions, the services used to match up jobs and job seekers. About 30% of the total quarterly revenue came from its marketing business and ad sales, and the remaining 20% from premium subscriptions.
Those business segments' growth rates show their demand in the career networking universe: hiring solutions sales climbed 136%, marketing sales were up 77%, and premium subscriptions grew 87%.
LinkedIn also made strides in its international business, branching into growing markets that will have a bigger need for professional networking. It finalized three offices, one each in Japan, Brazil, and India.
For the current quarter, the company forecasts revenue in a range of $170 million to $175 million, ahead of the average $171 million estimate.
Tech Sector: Cisco Systems Inc. (Nasdaq: CSCO) Earnings Show It’s Gearing Up for a Rebound
Tags: Cisco earnings, Cisco Systems earnings, Cisco Systems Inc. (Nasdaq: CSCO), Tech Sector
Groupon Inc. (Nasdaq: GRPN) Earnings Report Sends Investors Bailing on the Stock
Today's (Wednesday's) Groupon Inc. (Nasdaq: GRPN) earnings report – the first since the company went public in November 2011 – failed to show investors why they should believe in the social media-related stock.
Groupon reported a net loss before adjustments of $42.7 million, or 8 cents a share, compared to a net loss of $378.6 million, or $1.08 a share, for the same period last year. Revenue rose 194% to $506.5 million.
Wall Street expected earnings per share of 3 cents on $475 million in sales. With profit missing expectations and disappointing investors, shares fell 12% in after-hours trading.
The lower-than-expected earnings fueled the bearish outlook on Groupon.
"True, Groupon has plenty of cash in the bank and no debt, but you can find much better tech companies out there with stronger cash flow and solid earnings," Money Morning Defense and Technology Specialist Michael Robinson said last month. "For 2012, GRPN is a tech stock to avoid."
Avoid Groupon Inc. (Nasdaq: GRPN)
Groupon has slipped about 7% since its first trading day Nov. 11 to Wednesday's closing price of $24.58. Wall Street has a one-year price target of $25.06 – a mere 2% gain from Wednesday's close.
Groupon stock, along with last year's other Internet IPOs LinkedIn Corp. (NYSE: LNKD), Pandora Media Inc. (NYSE: P), and Zynga Inc. (Nasdaq: ZNGA), got a pop from recent investor excitement over the Facebook IPO. Groupon was up 7% Feb. 2, the day after Facebook made its IPO filing. LinkedIn rose 6%, Pandora 3%, and Zynga 17%.
Regardless of a recent share price spikes, the Internet IPOs of last year still face the growth and profitability obstacles that turned investors off before.
The New Money Market Fund Rules You Could Face
Tags: financial regulation, New money market fund rules, SEC
Cash for Keys: Avoid Foreclosure, Pay the Bank Less Than What You Owe… and Get $30,000
Tags: bank loans, cash for keys, forclosure program, Foreclosures, Housing Market, mortgage loans, realestate, second-lien, Short Sales
What the Glencore Xstrata Deal Means for the Global Mining Industry
The Glencore Xstrata deal, an all-share merger creating a $90 billion global mining industry powerhouse, would be the sector's biggest and could trigger the busiest year for M&A activity.
The companies announced the deal today (Tuesday) following Glencore's offer last week. Glencore would pay $41 billion for the rest of Xstrata's shares (Glencore already has a 34% stake).
Glencore International is the world's largest publicly traded commodities supplier, and Xstrata is the world's fourth-largest metals and mining company. A Glencore Xstrata deal would create a company rivaling global mining industry leaders BHP Billiton Ltd (NYSE ADR: BHP) and Rio Tinto Plc (NYSE ADR: RIO).
"Glencore being such a dominant trader and marketer of commodities, and Xstrata being such a strong operator of difficult assets, I think it creates enormous value," Prasad Patkar from Platypus Asset Management Ltd. told Bloomberg News. "On one end you have great mining expertise, on the other you've got great marketing expertise. Two and two together should make five."
The new combined entity would be more diversified than other global commodities players, with copper and coal being its biggest earnings drivers. It would be the world's biggest coal exporter for power plants and the top integrated zinc producer.
The new mining industry giant also will go on the hunt for smaller businesses, and encourage other powerful players to do the same.
Anadarko Petroleum Corp. (NYSE: APC) Ready to Rebound After Oil Spill Losses
Anadarko Petroleum Corp. (NYSE: APC) reported after market close today (Monday) a fourth-quarter profit loss, due to a $4 billion pay out made last quarter related to the BP PlC (NYSE ADR: BP) oil spill in 2010.
Anadarko, the largest U.S. independent oil and gas company by market value, reported a $358 million, or 72 cents per share, loss for the quarter. Revenue rose 42.7% to $3.84 billion from the year earlier quarter.
Excluding the spill-related payout and other items, Anadarko earned 85 cents a share. Wall Street expected the company to book earnings of 60 cents a share, more than doubling the 29 cents earned in 2010's last quarter.
Anadarko Petroleum Corp Stock Price History
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Now with its legal battles behind it, the company is ready to take off as higher oil prices and a recent discovery drive future earnings.
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