Asian markets fall on Chinese economy and dimming US sentiment
The markets in China fell dramatically on Wednesday due to fears over earnings estimates from Chinese companies as well as dimming views over the US recovery, according to the Associated Press. The Shanghai market closed down 2.7 percent and the Shengzhen Composite fell 4.1 percent. The US Conference Board sentiment fell in March. The Dow fell on Tuesday 43 points to close at 13,197. European markets are mixed on Wednesday.
Americans disapprove of Obama's handling of gas prices while France considers releasing strategic oil reserves.
A Reuters online survey indicates that 68 percent of Americans disapprove of how Obama is handling gas prices. This sentiment is due primarily to the .30 rise in gas prices in the last few weeks to an average of $3.90 per gallon nationwide. Thirty eight percent blame the oil companies for the increase but the disapproval for Obama was with both Republicans and Democrats. This comes as France announces that it will release some of its strategic oil reserves, according to the Associated Press. France apparently was pressured by the U.S. and the U.K. to tap into the strategic oil reserves.
New regulations to dramatically impact coal based energy
The Obama administration released regulations yesterday that will require radical reductions of emissions from coal manufacturers and will cease the creation of new coal producing plants, according to the Wall Street Journal. Today 43.3 percent of all fuel is from coal while 21.3 percent is from natural gas. The US Energy Information Administration indicates that energy in the next two decades will shift to natural gas. This is because coal produces 80.5% of all energy based emissions while natural gas emissions are only 17.6 percent. All of the natural gas producers will fit the new requirements while coal producers will be required to push their emissions underground under the new regulations. Existing producers and those being built are exempt from the requirements. The regulations are expected to dramatically impact employment in the coal industry but increase natural gas related jobs. Expect energy prices to increase in the Midwest which relies heavily on coal.
Homebuilder has jump in new orders
Just as home prices hit a new low in January, the Homebuilder Lennar has posted a sharp jump in new orders, according to Reuters. The homebuilder indicated it has seen a significant rise in new orders, consistent with the number of permits issued in February which were at a 3 year high. Shares of Lennar rose on Tuesday 7 percent to the highest close in 4 years.
Apple to refund iPad buyers in Australia
Apple will be offering a refund to iPad buyers in Australia due to misleading advertising, according to Reuters. Apparently buyers were led to believe that their iPads would connect to 4g mobile networks in Australia. Apparently the technology of the 4g network in Australia is incompatible.
Britain to sell Royal Bank of Scotland to Abu Dhabi
Reuters is reporting that Britain plans to sell a portion of the Royal Bank of Scotland, RBS, to investors from Abu Dhabi. Britain owns 82 percent of the bank since the bailout several years ago. It experienced a positive result from its sale of a portion of Barclays to investors in the United Arab Emirates, UAE, and expects a similar result from this sale.
MegaMillions reaches new record
The MegaMillions lottery, played in 40 states, the District of Columbia and Virgin Islands has reached a record high, according to Fox News. Winners of the lottery this weekend would win $476 million.