Stocks flat after day of big gains
Stock indices were flat Wednesday after a big gain to open the trading year.
Specialty stores such as Bed Bath & Beyond rose after a report that mall shopping was strong in the days after Christmas. Bank stocks, health-care companies and utilities fell slightly.
But nothing moved much. Investors appeared content with Tuesday's gain of almost 180 points in the Dow Jones industrial average, which brought the Dow to its highest level since July.
"It's healthy to see that after a big rally," said Randy Warren, chief investment officer for Warren Financial Service. "People need to sit back and think about it."
Just before 2 p.m. EST, the Dow was up 14 points at 12,411. The Dow lost 60 points in early trading, then came back to break even at midday. The Standard & Poor's 500 index was up a third of a point at 1,277. The Nasdaq was up a fifth of a point at 2,648.
Retailing-industry stocks rose 0.8 per cent as a group, after the report on after-Christmas sales, which were up 5.3 per cent compared with a year ago. Bed Bath & Beyond Inc. rose 2.4 per cent, and Ross Stores Inc., which sells discounted clothes, was up 2.3 per cent.
However, Wal-Mart Stores Inc. fell 1.2 per cent, making it the biggest decliner among the Dow's 30 stocks. Target Corp. fell 2.3 per cent. Analysts have been concerned that some stores raised holiday sales with deep discounts that will hurt profits.
Automakers delivered a strong end to 2011. Analysts had been expecting December to be a strong sales month for cars on the theory that more confidence in the economy would unlock pent-up demand. Ford Motor Co. stock rose 29 cents to $11.43.
European markets declined, and the euro fell back below $1.30, to $1.2945, within a penny of its lowest level in a year. Another increase in borrowing costs for Italy renewed worries about Europe's efforts to restore confidence in its debt-hobbled governments.
Swiss National Bank head says he has not broken law
The chairman of the Swiss National Bank (SNB), Philip Hildebrand, has denied any "legal breaches" resulting from his wife's currency trades.
He said he would not resign as a result of the claims.
Kashya Hildebrand bought $504,000 (£323,024) in August, three weeks before the bank intervened to reduce the value of the Swiss franc. She later sold the dollars to buy a property.
It is the first time the SNB chairman has spoken about the issue.
Integrity
Speaking to journalists, Mr Hildebrand said more transparency was needed in future.
"I understand that some of the transactions now discussed and the way in which they have been portrayed and interpreted in the media and in public could bring my integrity into doubt," he said.
"The most important lesson, which I can take from the events is: a further improvement of transparency in every aspect that concerns financial transactions of members of the board of the Swiss National Bank is essential."
On Wednesday, the SNB published details of an internal investigation by auditors PricewaterhouseCoopers which, it said, cleared the bank head and his family of breaking any rules.
Alongside the investigation the SNB also published its own internal rules which had not previously been made public.
Mr Hildebrand said his behaviour had been both legally and morally appropriate.
Investigation
"I have at all times acted not just according to the rules but also correctly," Mr Hildebrand told journalists.
The conference comes after state prosecutors in Switzerland announced an investigation into a 39-year old man suspected of leaking information about the Mr Hildebrand and his family from a private bank.
Mr Hildebrand said he currently had no intention of stepping down as a result of the criticism.
"So long as I have the confidence of the government and the bank council, stepping down is not an issue for me."
Former Olympus boss ends takeover bid for camera firm
The ousted boss of Olympus has given up on his attempts to regain control of the Japanese camera and medical equipment maker.
Michael Woodford was fired after highlighting accounting irregularities that sparked a police probe and stock-price slump.
After denying the accusations, Olympus eventually admitted it hid $1.5bn (£968m) of losses over twenty years.
Mr Woodford said his return had failed to win support from main shareholders.
"Despite my having done the right thing, none of the major Japanese institutional shareholders have offered one word of support to me," Mr Woodford said in a statement.
Mr Woodford also claimed that the Olympus issue had caused his family and wife distress.
Current team
When the scandal broke, a number of theories were mooted about why the losses were covered up, including allegations of criminal activity.
At the start of December, an independent panel appointed by Olympus found that while the "core part of management was rotten", there was no link to organised crime.
It said legal action should be taken against those involved in the cover up, adding that those who knew about the situation should be replaced.
Mr Woodford was trying to win support for himself and a new group of directors to take over the running of Olympus.
While Mr Woodford won the support of some shareholders, many of the company's key investors still backed the current management, headed by chief executive Shuichi Takayama.
Olympus shares dropped more than 4% in early trading in Tokyo on Friday.
Prime Minister Portia Simpson Miller's inaugural address
My fellow Jamaicans, I am thankful to God for guidance and strength;and to you the people of Jamaica for the faith and trust that you have placed in me and my team. I am deeply humbled that, once again, you have chosen me to lead our nation as it stands at a crossroads.
The Team, which I am privileged to lead, is just as conscious as I am of the difficult times that confront us on our journey.
In our political history, it is a rare opportunity to be given a second chance to lead. It is also a sobering experience. But, I have been strengthened by the experience of going through the first phase of the journey. And, I have emerged like the steel in “It Takes A Mighty Fire” which H. D. Carberry, our Jamaican poet, wrote about in his poems of discovery and self awareness. And, after being tested and tempered, I stand before you, today, a stronger and better person, who is prepared to be of service to my country and people.
I know that we face an awesome task. There is greater debt, increased poverty levels, tighter fiscal space.
My administration will not engage in a blame-game. We will present the facts to the Jamaican people, based on rigorous analysis. Our approach must be to right the wrongs and insist on accountability. Let us learn from our past, absorb the lessons and go forward. We only need to look back to confirm where we are coming from, and to correct our errors and weaknesses as we look to the future. That is the way of progress.
The mandate which Jamaicans gave the People's National Party on December 29 is a call to action. It is a signal from our people that we, the government, must earn their trust. It also gives us the opportunity to ease the burdens and the pressures of increasing poverty, joblessness and a deteriorating standard of living.
The mandate is a cry for us to restore hope.
The mandate calls on us to protect the good name of Jamaica, at home and in the eyes of the international community. Jamaica must remain for all, a “quality brand,” which gives citizens, from all walks of life, the opportunity to achieve their goals.
The Jamaican people have sent a clear message. They want a more accountable and transparent government which consults them; and, they should expect nothing less.
On my watch, I pledge that the rule of law will be paramount; and we will serve with humility.
On my watch,I pledge that we will honour the faith and trust of the Jamaican people.
On my watch,I pledge that we will reject governmental extravagance and be vigilant in eliminating corruption.
My fellow Jamaicans, the first order of business for the members of the Leadership Team will be to inform ourselves about the true state of the Jamaican economy.
Then we must act.
We remain committed to a vibrant partnership with all critical stakeholders; local private sector; the public sector—civil servants who play a pivotal role in nation building; our international partners; and, in particular, with the International Monetary Fund, as we identify the basis for a new Agreement.
Our policies are based on the principle that the private sector is a major participant in shaping the economy of our country. However, in a time of crisis, government must act to stimulate growth and to restore confidence in the country's ability to pay its way. Hence, in the short and medium term, we will use state resources to stimulate employment through the Jamaica Emergency Employment Programme (JEEP). We will do so in a transparent and non-partisan manner, to improve critical areas, such as the infrastructure and the environment, which support economic growth.
Let me say emphatically to our business community, at home and overseas…we will pursue a tight fiscal policy, reduce our debt to GDP ratio, maintain the key macro-economic fundamentals; and be very careful and prudent in our debt management.
We will do all of this while seeking to improve the social conditions of our people, including a serious reduction of the chronic state of unemployment in this country, particularly among our young people.
I also assure you that we will work with anyone who is prepared to work in Jamaica’s interest and who shares our vision that people must be at the centre of our development.
Our investors, including foreign direct investors, must contribute to making Jamaica a truly competitive economy. Now, more than ever, we must also make it easier to do business in Jamaica. Investors demand no less, and our future social and economic prospects depend on it.
Our Administration will be marked by greater Openness in Government and frankness in our relations with the global community. This candidness will also be seen in the meetings of Parliamentary Committees, which Members of the Opposition will continue to chair; and, to which the media and the public will have full access.
This government will also broaden and deepen our input into the Regional Integration Movement. We will restore the vibrant and vigorous participation of our country. Previous PNP Administrations have given quality time and expertise to this Regional Integration Movement.
One important agenda item will be to establish the Caribbean Court of Justice in its final appellate jurisdiction; and in this way, end judicial surveillance from London. We must fully repatriate our sovereignty. And, in going forward, we invite the Opposition to follow through on the statements which it recently made that we were “not far apart” in our respective positions. Let us, together, complete this aspect of Regional Integration within the life of this Administration.
My fellow Jamaicans…it is time for us to build a gentler, more respectful and responsible society. My Administration will be marked by respect and responsibility. The Jamaican people have elected us to lead, and we will lead. We will take responsibility for the society and we will be responsible to the society. I urge all Jamaicans to become more respectful of ourselves, more respectful of each other, more respectful of our senior citizens, more respectful of persons with disabilities, and more respectful of our national symbols and national institutions.
We will seek to earn your respect by how we conduct ourselves and the nation’s business.
We will strive for more civil and respectful behaviour in our Parliament.
As we continue on this journey, we will seek to make this country a nation of brothers and sisters, not one of rivals and victims.
This Administration will extend the hand of participation to everyone, who wishes to play a role in our development. Jamaicans in the Diaspora will be given every opportunity to contribute and to be respected equally as Jamaicans at home.
As we journey together, I call on all Jamaicans to take responsibility for our lives. Be the best student you can be; the best parent; the best teacher; doctor or nurse; politician, public servant or private business person; athlete or entertainer; designer, dressmaker, hairdresser or barber; and strive to improve ourselves by reinvesting in our personal development.
That is how people ultimately make progress. This government can provide the context and the opportunity. That is the partnership I want.
Partnership between the government and the people is not a matter of choice but an absolute necessity. This is critical if we are to extend our already world renowned power to true national, economic and social triumph. Absolutely nothing can make our magnificent country fail if we all put aside our differences and strive for our ultimate goals.
As we continue our journey, this is the Jubilee Year of Jamaican Independence. This 50th Anniversary year will be a time for reflection on the lessons of the past; and, as we celebrate our achievements as an independent nation, we now need to complete the circle of independence. In this regard, we will, therefore, initiate the process for our detachment from the Monarchy to become a Republic with our own indigenous President, as Head of State.
Year 2012 is also an Olympic Year, and our athletes are already poised to make us proud again, in this international arena. This mandate, therefore, presents a unique opportunity for us to unite and work together as one people, and take full advantage of the prospects that will emerge…as we invite the rest of the world to “Meet Jamaica” in London in July and August.
My fellow Jamaicans, those who have gone before blazed a trail of success, and passed the baton to us. We are all conscious of the achievements of our National Heroes and Heroines, former leaders and the thousands of other Jamaicans who have played their part.
We are the proud beneficiaries and successors of their legacy.
Today we embark upon a new phase of our Jamaican journey. In the ‘Global Trade Winds’ of change we are not always at liberty to direct these winds but we must set our sails to pilot the Good Ship Jamaica through these turbulent economic waters to safe harbour.
In the face of these dramatic winds of change, I am calling for all hands on deck. This nation requires the strength, the creativity, the innovation and the steely courage of every Jamaican man, woman, youth and child to place this vessel on a path to prosperity.
Today, I invite you to hold my hands, as I hold yours. Today, I invite you to hold your neighbours’ hands. Let us form a strong bond of patriotic unity and let us move forward together on this journey into our collective future.
I believe that today marks a critical turning point in our journey. You must believe this with me and you must play your part in this process of transformation.
"It is shining time again." It is our time to shine. The challenges will not disappear overnight, but together we can overcome and we shall rise and we shall shine.
I begin this leg of our journey with an unfaltering belief in my people. I invite you to join me in this confidence in ourselves. Together, we shall rise and together with the guiding hand of the Almighty, we will succeed.
May God bless Jamaica. May God bless us all.
Thank you.
Caribbean countries record mixed fortunes in trade with US
Trinidad and Tobago has become the leading source of United States imports entering under the Caribbean Basin Initiative (CBI) tariff preferences, displacing the Dominican Republic, according to the latest report issued by the Office of the United States Trade Representative.
In the “Ninth Report to Congress on the operations of the Caribbean Basin Economic Recovery Act 2011″, the United States imported US$2.2 billion under CBI tariff preferences from Trinidad and Tobago in 2010, an increase of 43.8 per cent from 2009.
“Imports under CBI tariff preferences from Trinidad and Tobago are dominated by petroleum and methanol and 75 per cent of imports of these two goods entered under CBI provisions in 2010.
“US imports of petroleum under CBI tariff preferences increased in value in 2010 because of both higher volume and higher prices,” the report said. “US imports of methanol increased in value mainly because of higher prices,” it added.
The report noted that Haiti became the second leading source of US imports entering under CBI tariff preferences in 2009 after Costa Rica left the CBI.
It said that apparel accounted for more than 90 per cent of US imports from Haiti and almost all imports of apparel from Haiti enter under CBTPA or the two HOPE Acts.
Imports of apparel from Haiti at preferential tariff rates increased nearly 26 per cent in 2009, as utilisation of preferences under the HOPE Acts became established.
The report noted that the January 2010 earthquake in Haiti slowed the growth of imports of apparel under preferential tariffs to 0.7 per cent in 2010, but such imports surged 46 per cent in the January — August 2011 period compared to the same period in 2010.
Since Costa Rica left the CBI in 2009, Haiti has become the source of virtually all imports of apparel from CBI countries.
The Bahamas, in the meantime, replaced Jamaica as the third leading source of US imports entering under CBI tariff preferences in 2010 as imports of fuel ethanol from Jamaica plummeted and imports of apparel from Jamaica declined.
“Jamaica had been the major US source of fuel ethanol in past years, but market conditions in 2009 and 2010 radically changed the profitability of fuel ethanol production in Jamaica, and there were no imports of fuel ethanol from Jamaica from March 2010 to June 2011,” the report noted.
It said that after several years of decline, there were no US imports of apparel from Jamaica under CBI tariff preferences in 2010.
The United States continues to have a small amount of bilateral trade with many of the Caribbean economies.
“While the overall value of imports is small, imports under CBI tariff preferences account for relatively significant proportions of total US imports from these countries. Cane sugar, non-monetary gold, orange juice, papayas, and electrical machinery were some of the leading categories of CBI imports from the smaller Caribbean economies,” the report noted.
The Office of the United States Trade Representative said that although the CBI was initially envisioned as a programme to facilitate the economic development and export diversification of the Caribbean Basin economies, US export growth to the region has been a “welcome corollary benefit”.
It said that the value of total US exports to CBI countries fell 38.4 per cent in 2009, but rose 27.6 per cent in 2010.
When only 2010 beneficiaries are considered, US exports decreased 21.5 per cent in 2010. Collectively, at US$18.5 billion, the CBI region ranked 16th among US export destinations in 2010 and absorbed 1.7 per cent of total US exports to the world.
“Panama, The Bahamas, the Netherlands Antilles, and Trinidad and Tobago were the principal markets for US products in 2010, accounting for 72 per cent of US exports to the CBI region in 2010,” the report said, noting that the United States exports a broad range of products to the CBI region.
In 2010, the leading categories included refined petroleum products, aircraft, jewellery and jewellery parts, rice, and corn.
Jamaica Observer
St Kitts-Nevis issues biometric passports
St Kitts and Nevis begins issuing new E- (biometric) passports from January 5, the Ministry of Foreign Affairs, Homeland Security, Labour and Social Security has announced.
The ministry said in a news release that the new passports, with several improved security features, are being introduced as part of government’s ongoing efforts to prevent fraud and identity theft consistent with its regional and international commitments.
The Passport Office will issue the new E- (biometric) passports to citizens and residents, who are applying for the documents for the first time, or to those requesting replacements.
Citizens and residents currently using the machine readable passports will continue doing so, once these are not expired, lost and or damaged.
They will not, at this time, be required to change to the new E- (biometric) passports until the old document has expired.
The ministry said that introduction of the new passport has become necessary given the regional and global efforts to improve security.
The new document to be issued by the government of St Kitts and Nevis is more secure and designed with specific imbedded features intended to enhance the integrity of the new E-Passport and will facilitate more seamless travel by citizens and residents of the Federation.
Caribbean News Now
American arrested in land fraud
Detectives have arrested and charged an American man implicated in land fraud.
He is 69-year-old Samuel Speranza of a California address.
Speranza is facing the charges of forgery, uttering forged documents, conspiracy to defraud and causing property to be transferred by forged documents.
It is alleged that on June 6, 2009, Speranza conspired with his attorney to forge the signature of another individual.
It is further alleged that they used forged documents to secure the transfer of land titles for three properties in St. Ann’s Bay, St. Ann to two companies owned by Speranza and his attorney.
The police say the properties are valued at $1 billion.
Speranzo’s attorney was charged in March 2010 for the same offences.
Sacramento Kings fire Paul Westphal after 2-5 start
If the Sacramento Kings stood any chance at success this season, Paul Westphal had to find a way to control talented but volatile center DeMarcus Cousins.
He couldn't - and lost his job because of it.
The Kings fired Westphal Thursday after two-plus seasons as coach, cutting ties amid a slow start and an escalating dispute with Cousins that threatened to consume the locker room. Assistant Keith Smart, let go by the Golden State Warriors in April after one season at the helm, signed a deal to become the team's new head coach.
With the Cousins-Westphal spat showing no resolution, Kings owners Joe and Gavin Maloof finally decided to take action. Instead of trading away a promising young big man, they made Westphal the first firing of the lockout-shortened season.
LOWE: Kings' problems go way beyond Westphal
"We're in a situation here where you can't take a philosophical vacation because things are happening in real time," Kings president of basketball operations Geoff Petrie said. "You start to keep seeing the same things over and over again, you can't sit around and meditate forever about how you're going to approach them or try and change them."
Looking to build momentum for a new arena project, Sacramento stumbled at the start again this year.
A talented and athletic - albeit raw - roster entered Thursday night's home game against Milwaukee with a 2-5 record and in last place in the Pacific Division. Westphal finished with a 51-120 record in Sacramento.
The 61-year-old previously coached the Phoenix Suns and Seattle SuperSonics. In a statement released by the team, Westphal thanked the Maloofs, his coaching staff and players for the opportunity.
"While the job is far from finished, I am proud of the strides we were able to make," he said.
In the last week, all of Westphal's efforts in California's capital shattered.
He abruptly released a statement Sunday criticizing Cousins' commitment to the franchise and excused him from the team's game against New Orleans. He also said Cousins asked for a trade, which the center's agent refuted.
Petrie said he knew of Westphal's plans to release the statement but indicated that the Maloofs didn't. Petrie dodged questions about whether he supported Westphal's statement about Cousins, who expressed remorse for Westphal and said he would soon reach out to his former coach.
"It's been an emotional week and a lot of misunderstandings," Cousins said. "But it comes with the territory. Coach Westphal was a great teacher to a lot of us and a good coach. But this was a management decision."
Sacramento drafted Cousins with the fifth overall pick in 2010 after he spent one season at Kentucky. The 21-year-old was averaging 13.7 points and 9.3 rebounds in 26 minutes per game this season.
Cousins' behavior has been well documented going back to high school and his one season at Kentucky, mixing in dramatic and astonishing plays with outbursts against players, coaches, trainers and referees. His conditioning has been questioned and so has his work ethic. However, he showed up for training camp in prime condition and appeared ready for a breakout season.
"Of course people are going to tie (Westphal's firing) to me," Cousins said. "It will just show their ignorance. But like I said, it's not my decision."
The Kings had high hopes for a major turnaround this year.
Teamed with 2009-10 rookie of the year Tyreke Evans, Cousins was expected to anchor the front line for a young and emerging roster in the deep Western Conference. Sacramento finished 24-58 last season and missed the playoffs for the fifth straight year, although a late-season surge behind a healthy Evans provided hope that maybe the Kings weren't that far off from making the postseason again.
Turns out, the Maloofs couldn't wait any longer.
The NBA and the Maloofs have given Sacramento a March 1 deadline to approve a plan to help finance a new arena, or the franchise could again explore relocation. The Kings nearly moved south to Anaheim, Calif., in April before the league's Board of Governors decided to give Sacramento another chance.
Now the Cousins conflict is Smart's responsibility to fix.
Smart, the former Indiana guard best known for hitting "The Sho
SI
Roger Federer and Rafael Nadal through at Qatar Open
Defending champion Roger Federer beat Italian Andreas Seppi 6-3, 5-7, 6-4 to reach the Qatar Open semi-finals.
World number two Rafael Nadal is also through after a 6-4, 6-4 victory over Russian Mikhail Youzhny.
Federer now faces Frenchman Jo-Wilfried Tsonga, who he beat in the final of the ATP World Tour Finals but lost to in the last eight at Wimbledon.
"I am looking forward to playing him again. I hope it will be a good season for both of us," said Federer.
"He's always a nice guy to see play, and a nice guy off the court as well - so I hope we can live up to expectations."
Federer's victory was his 20th in succession since losing to Novak Djokovic in the US Open semi-finals.
World number six Tsonga, who beat Spain's Albert Ramos 6-2, 6-1, said: "Federer is the best player in the world, probably ever, and it will be difficult to play him.
"You have to be perfect. I have to play my best tennis. But I know I can do it. I have done it already."
Nadal will play fourth seed Gael Monfils in his semi after the Frenchman defeated Serbian Viktor Troicki 6-2, 6-3.
Manny Pacquiao offered four potential opponents
Manny Pacquiao will be offered a choice of four potential opponents for his next fight but fellow legend Floyd Mayweather will not be among them.
On the menu for Pacquiao are Mexico's Juan Manuel Marquez, Puerto Rico's Miguel Cotto and Americans Timothy Bradley and Lamont Peterson.
"I will lay everything out and Manny will choose," said promoter Bob Arum.
Mayweather, the man fans most want to see Pacquiao fight, begins a 90-day prison sentence for assault on Friday.
Mayweather and Pacquiao were due to meet last year before a row over drug testing scuppered the bout.
Arum said the earliest seven-weight world champion Pacquiao could fight five-weight world champion Mayweather would be November.
"Besides the opponent, the other thing we need to discuss is whether he [Pacquiao] will fight in May or June," said Arum.
"You can't expect Floyd, after having been in prison, to come out and go right into a big fight.
"He won't be available to train or promote a fight in May or June. He'll probably want to have a tune-up fight."
Arum said a 5 May date would be a factor only against Marquez because that is when a Mexican holiday falls and a date when fights involving Mexicans are popular.
In his most recent fight, Pacquiao, 33, won a majority decision over Marquez last November, although many observers thought Marquez had done enough at least to earn a draw.
Their previous two encounters, which resulted in a win and a draw for Pacquiao, were also controversial.
Pacquiao stopped current WBA light-middleweight champion Cotto in the 12th round in 2009 but Cotto has stopped three rivals in a row since.
Arum said a Pacquiao-Cotto rematch would be fought at light-middleweight rather than welterweight, where the prior fight was staged and Pacquiao holds the WBO belt.
Unbeaten WBO light-welterweight title-holder Bradley, who is also promoted by Arum, would have to move up a weight to make the fight.
Peterson suffered his only loss to Bradley in 2009.