Nasdaq admits technology snafus in Facebook IPO
On Sunday, Robert Greifeld, chief executive of Nasdaq OMX Group, Inc., acknowledged that technology issues impacted the Facebook IPO, according to the Wall Street Journal. The IPO was beset by a 30 minute delay on Friday morning and technical glitches throughout the day caused many large institutional and hedge fund buyers to bail out of the stock. Professional traders indicated that there were two hour delays to hear whether an order had been honored. This was the second technical challenge experienced with an IPO for a major exchange in the last two months. While Facebook shares remained flat on Friday, the Nasdaq fell 34 points to 2778. The Dow fell 73 points, closing at 12,369. European markets are up on Monday and Asian markets were mostly up.
Chinese Buyers Defer Coal and Iron Ore shipments
Chinese companies that use coal and iron ore are asking providers to defer the cargo shipments, or in some cases, defaulting on contracts, according to CNBC. This is part of the ongoing evidence of a slowdown in the Chinese economy. China’s economy grew 8.1 percent in the first quarter, the weakest rise in three years but still pointing towards a soft landing. Other key economic indicators such as electricity consumption, cargo volumes and disbursement of bank loans indicate the slowdown is much larger. As the world’s largest consumer of commodities, a slow down raises global economic fears.
Rural economies strong in West and Midwest
The Rural Mainstreet survey rose to 58.5 in May from a healthy 57.1 in April, according to USAToday. Any score above 50 means growth in the months ahead. The survey is conducted with banks in rural parts of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. The rural communities have an average population of 1200. The health of the agricultural businesses are driving the confident attitudes of the rural population.
European banks fear that deposits may leave
Last week 700 million euros were withdrawn from Greek banks in a single day, according to the Wall Street Journal. The withdrawals were primarily due to the fear that Greece might leave the European Union. If that should happen, it is likely that Greece would not allow funds to be withdrawn from its banks. Many investors fear that a similar scenario could also occur with other countries that face a similar situation to Greece, such as Spain and Portugal. On Friday, British customers withdrew 200 million euros from a U.K. arm of Spain’s Banco Santander SA due to a downgrade in its credit rating. While some analysts express concerns, others believe that the European Central Bank will be able to step in and ease any fears.
Former IMF Chairman May be charged with gang rape
Former IMF Chairman, Dominique Strauss-Kahn, who successfully dodged rape charges in the US may now be charged with gang rape in France. According to CNN, Strauss-Kahn brought two French escort girls from France with him to Washington, DC, where the incident allegedly took place. The allegations came as part of a larger prostitution investigation in France. They are now part of a string of allegations against the former IMF Chairman.
Corn futures take off due to China
US corn futures jumped 9.4 percent last week after having fallen 11 percent in the previous month. The corn prices jumped due to a surge in wheat futures which have risen 17 percent due to dry weather in key states, according to the Wall Street Journal. Additionally, fresh sales of corn to China also boosted futures. China has become an increasingly important buyer and its imports are expected to increase by 50 percent. Dry weather early in the season in the key corn producing states is also increasing prices.
Babe Ruth jersey sells for $4.4 million
A baseball jersey worn by Babe Ruth has sold for more than $4.4 million, a record for any item of sports memorabilia, according to the Associated Press. This is apparently the earliest know jersey worn by Babe Ruth. SCP Auctions sold the piece and Lelands.com was the buyer. Lelands plans to sell it to a private buyer.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.