Apple stock touches $700
Apple booked more than 2 million orders for its iPhone 5 in the first 24 hours indicating a higher than expected demand for the new smartphone, according to Reuters. Apple said on Monday that pre-orders outstripped initial supply but it would deliver most phones by Friday. Others would be delayed until October. Barclays predicts Apple will sell 45.21million iPhones by December, up 22 percent from last year. Apple shares rose in after hours trading to touch $700 per share for the first time. The Dow was down 40 points on Monday, closing at 13,553. Both European and Asian markets are down on Tuesday.
Japanese companies shut China factories
Protests against Japan have been rocking China since Japan announced that it bought the Senkaku Islands from their private owner. The Financial Times reports that companies such as Fast Retailing, the owner of Uniqlo, has been forced to close outlets in Beijing. Canon, the consumer electronics maker, has suspended operations at three factories until Wednesday. Protests are expected to continue through Tuesday, the 81st anniversary of the start of the Manchurian Incident in 1931 when the Japanese blew up a railway as a pretext for invading China.
Oil prices plunge on Monday
Oil prices plunged more than $4 per barrel in a short time on Monday, erasing gains made last week, according to USAToday. Some analysts suggest the price had gotten too high given the weakness of the global economy. Others questioned rumors about a release from the strategic oil reserve. Others believe that this will be the catalyst to slow the recent volatility of oil prices.
Shell Oil forced to delay quest for Arctic oil
Royal Dutch Shell Oil was forced to push back until next year its plans to drill for oil in Alaska’s Arctic offshore after a containment system was damaged during a test. The Wall Street Journal reports that Shell has spent $4.5 billion to open up its Arctic drilling but will be forced to drill only top holes this year. Persistent sea ice and regulatory hold ups have slowed down the project thus far, however, Shell believes it will be able to drill in the spring once the containment dome is repaired.
Small German companies issue their own bonds
Small and medium sized businesses in Germany are turning to the corporate bond markets for financing for the first time and no longer depending on banks, according to the Wall Street Journal. Mid-sized and small firms in Germany are known as Mittelstand, and these companies have found that banks have become increasingly difficult to deal with, so they are issuing their own bonds at attractive rates. This corporate bond market is growing so quickly that France and the U.K. have begun developing similar models. Last year Mittelstand bonds represented 23 percent of the German corporate bond market. Moody’s warns that most of these bonds are not investment grade.
Turkey to sell Islamic bonds
Turkey will sell its first bond compliant with Islamic law on Tuesday and could raise $1 billion, according to the Wall Street Journal. Islamic bonds, known as sukuk, represent half, or $13 billion of the Middle East’s $24.3 billion of bonds sold in the first six months of 2012. Instead of paying interest, which is prohibited by Islamic law, Turkey sells certificates and leases them back to the issuer at a fee. Turkey, as one of the stronger growing economies, has attracted significant interest from investors. The sukuks pay a rate of 2.87 percent, similar to a government bond.
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.