Four banks required to hold extra capital
CNBC is reporting that Citigroup, Deutsche Bank, HSBC and JP Morgan Chase will need to hold the most extra capital of the 28 banks considered by regulators to be large and complex, according to report released Thursday. The four banks must hold an extra 2.5 percent of common equity as a percentage of risk weighted assets on top of the 7 percent minimum being phased in, according to the Financial Stability Board. This is to ensure that global banks cannot threaten the financial system. The rules are set to go into effect in 2016 and will be revised at least twice before that time.
Strong retail sales reports tallied before the storm
October retail sales reports were generally strong showing same store sales, excluding drugstores, were up 5 percent from a year earlier, according to the International Council of Shopping Centers. The report was led by strong sales from wholesale clubs like Costco, and department stores such as Kohl’s and Macy’s. The Wall Street Journal reports that these numbers were tallied before Hurricane Sandy and its impact will be included in the November numbers.
Consumer confidence grows to highest level in 5 years but still well below healthy level
Consumer confidence grew to its highest level in 5 years causing the Dow to jump 128 points, to end at 13, 232.. The Associated Press reports that the Conference Board’s consumer confidence index rose to 72.2 last month, the highest reading since February 2008. The Index is still well below the 90 level which indicates the economy is healthy. ADP’s payroll report indicated that businesses added 158,000 jobs in October, still not enough to help the 12 million Americans still out of jobs. Asian markets are up on Friday while European markets are mixed.
Sandy reveals Atlantic City’s bigger problems
According to the Financial Times, Hurricane Sandy will impact Atlantic City’s gambling revenues dramatically. This will further endanger a city that was already struggling with the significant loss of business due to the rise of slot machine houses and casinos in Pennsylvania, New York, and Maryland. The 12 casinos remain closed and gaming revenues are predicted to be down at least 20 percent amid the devastation on the beach.
iPad minis go on sale
The iPad mini goes on sale today, as reported by the Wall Street Journal. The device measures 7.9 inches diagonally and goes on sale for $329 for the cheapest model. The Mini is expected to bring a smaller crowd than the iPhone 5, however, it is estimated that it will sell 1 to 1.5 million iPad Minis this weekend. That compares to 3 million new iPads sold over the weekend when they went on sale in March. Analysts predict that Apple will sell 9.25 million iPad Minis over the holiday season.