France lifts ban on short-selling

LONDON (MarketWatch) -- French regulators said Monday they have lifted a ban on short-selling of 10 financial stocks, which had been in effect since August. The French stock market regulator AMF said in a statement that the ban came to an end Saturday. The ban had applied to BNP Paribas SA , Credit Agricole SA , Societe Generale SA and AXA SA among others. Shares of Credit Agricole fell 3.9% Monday, while Societe Generale dropped 3%, BNP Paribas shed 2.6% and AXA lost 0.6%.

Apple Stock Hits $500: Tech Giant’s “Best Days Are Still in the Future,” Former Retail Chief Says

Apple shares topped $500 for the first time Monday morning, trading as high as $503.83 in yet another milestone in a long-running series by the company.As impressive as the past decade has been for Apple, the company's "best days are still in the future," according to Ron Johnson, Apple's former retail chief and current CEO of J.C. Penney.Johnson, who helped build Apple into a retail juggernaut, says the company is poised to keep growing and taking market share because of its intense commitment to "innovation and quality."Apple is "incredible at creating products that people love," he says. "Nobody does hardware better; nobody does software better. Nobody does retail better. And they're just getting started in places like China."While the passing of Steve Jobs leaves a void at the firm, Johnson lauds his former colleagues. Apple has a "huge reservoir of talent," he says, citing CEO Tim Cook and design chief Johnny Ives as notable examples. (See: The Future of Apple Without Steve Jobs)Steve Jobs "built a team that is equally unmatched" and "I expect that team to really excel in the decade ahead," Johnson declares.Supply Chain ConcernsIf there's any knock on Apple these days, it's about concerns with its supply chain and working conditions at Foxconn and other suppliers. (See: The Darker Side of Apple: The Human Cost of Your iProducts)Following a steady drumbeat of criticism, Apple on Monday announced it has asked the Fair Labor Association to "conduct special voluntary audits of Apple's final assembly suppliers, including Foxconn factories in Shenzhen and Chengdu, China." (See: Apple's Sweatshop Problem: 16 Hour Days, ~70 Cents An Hour)Johnson says "a lot of attention" was giving to such issues during his time at Apple. "Apple has great compassion for people who work at partner companies," he says. "It's just a really complex issue [and] hard to control. I'm confident Apple cares deeply about the issues and will address them."Because of its huge market-cap and industry position, Apple can be a leader in these areas, according to corporate governance and labor experts.But all importers must be "deeply concerned" about working conditions in the supply chain, Johnson says. "We've got to pay close attention as best we can to what goes on in every factory where we manufacture products."Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @aarontask or email him at altask@yahoo.com

Obama unveils $3.8 trillion budget

President Obama unveiled a $3.8 trillion budget request Monday that hikes taxes on the rich, spends new money on infrastructure and education, but does little to reform the entitlement programs that pose the biggest long-term threat to the federal budget.

"We built this budget around the idea that our country has always done best when everyone gets a fair shot, everyone does their fair share and everyone plays by the same rules," Obama said in his budget message.

But the budget forecasts a deficit for fiscal year 2012 that will top $1.3 trillion, before falling in 2013 to $901 billion, or 5.5% of gross domestic product.

The deficit projections, which have hovered near $1 trillion for each year of the Obama presidency, mean that Obama will not satisfy his 2009 promise to half the deficit by the end of his first term.

White House officials described the budget as a continuation of two major speeches given recently by the president -- one in Kansas where he promised Americans a "fair shot," and last month's State of the Union.

The budget also offers fresh insight into how the White House plans to comply with last year's Budget Control Act, which allowed Congress to raise the debt ceiling in exchange for caps ondiscretionary spending accounts.

Many of the high profile recommendations made in the budget were first floated by the administration last year as part of a deficit reduction plan rolled out in September.

Spending: The administration is proposing a series of investments focused on infrastructure, education and domestic manufacturing, including old favorites like $30 billion to modernize schools and an additional $30 billion to retain and hire teachers and first responders.

One key element of that plan is a six-year proposal to spend $476 billion on surface transportation, a big increase from current levels, and much more than other proposals lawmakers are considering.

At the same time, the White House had to comply with the spending caps enshrined in the Budget Control Act, which total in the neighborhood of $1 trillion in discretionary spending over a decade.

That means many programs will see their funding cut.

"Every department will feel the impact of these reductions as they cut programs or tighten their belts to free up more resources for areas critical to economic growth," Obama wrote.

Discretionary spending is projected to fall from 8.7% of GDP in 2011 to 5.0% in 2022.

The budget details 210 places where programs will be cut or eliminated, for savings of $24 billion in 2013 and $520 billion over a decade.

For example, the budget eliminates an Air Force satellite system that is "no longer needed to meet mission requirements."

And the budget proposes consolidating the Bureau of Public Debt and the Treasury's Financial Management Service.

The president would also like to cut some mandatory spending, including select farm subsidies and federal employee retirement and health benefits, for savings of $217 billion over a decade.

Military spending will be reduced. The Pentagon plans to spend $487 billion less over 10 years, a course that Secretary of Defense Leon Panetta has already laid out in some detail.

But even with some cuts, annual deficits are still projected to be more than $500 billion every year for the next decade, and the budget would add $7 trillion to the debt held by the public between 2013 and 2022.

Taxes: The budget proposes a tax hike of $1.5 trillion, which includes a provision that will allow the Bush tax cuts to expire for high-income earners, a long-held Obama position.

Obama would like carried interest to be taxed as ordinary income, which means money managers would pay more than double the rate they currently pay on a portion of their compensation.

The budget also incorporates the Buffett Rule, a guideline to ensure that the wealthiest do not pay a lower overall tax rate than those who earn substantially less money.

'Dirty Harry' weighs in on deficit

Specifically, no household making more than $1 million will be a allowed to pay less than 30% of its income in taxes.

It also calls for a year-long extension of the payroll tax cut and unemployment insurance.

In addition, the White House wants to reform the individual tax code in a way that "eliminates inefficient and unfair tax breaks for millionaires while making all tax breaks at least as good for the middle class as for the wealthy."

On corporate taxes, details are scarce, but administration officials said that the president will unveil a plan to reform the corporate tax code later this month.

Entitlements: Because the president's budget does little to address how to curb the growth in entitlement spending, it's unlikely to stabilize deficits beyond the next 10 years.

The budget would cut more than $360 billion from Medicare, Medicaid and other health programs over a decade. But that's a drop in the bucket when compared to the rapid expansion of costs expected for entitlement programs.

National debt: The five-minute primer

"While [Obama's] budget stabilizes debt over the next decade, the real problem arrives thereafter, as entitlement costs spiral out of control and revenues are inadequate to deal with a wave of retiring baby boomers," Pete Domenici and Alice Rivlin, who led their own debt task force, said in a joint statement.

Of course, proposing significant cuts to Medicare and Social Security during an election year is a politically risky move, but by not saying much on the issue, the White House opened itself to criticism.

House Appropriations Committee Chairman Hal Rogers took Obama to task on Monday, saying the proposal "falls exceptionally short" on entitlement spending reform.

"It is imperative that both the President and Congress put greater focus on addressing the exploding costs of these programs," Rogers said. "Without meaningful action in this area, the nation's debt and deficit crisis will continue, increasing the risk to our nation's financial and economic future."

What's next: Obama's budget request is essentially a blueprint of his fiscal priorities -- the programs he would like to fund or cut, the new investments he would make and how he would pay for it all.

But the request is just that -- a request. And it's one that Congress can accept, reject or modify.

Even if Obama's budget is adopted -- which it won't be -- the estimates for deficit reduction may or may not pan out depending on how close to reality the administration's forecasts for unemployment, interest rates and economic growth prove to be.

In any case, Obama's 2013 budget is only the first step in a convoluted process that involves no less than 40 congressional committees, 24 subcommittees, countless hearings and a number of floor votes in the House and Senate.

If all goes well, a formal federal budget for government agencies will be in place by Oct. 1, the start of the 2013 fiscal year.

View this article on CNNMoney

The IRS issues new rules for reporting stock sales

Last October the Internal Revenue Service (IRS) released a new version of the annual tax forms investors receive from their brokers, called the 1099-B. While the new version will require less effort from investors when filing their taxes, it could also curtail their expected profits.

Previously, brokers were only required to report on the 1099-B certain information relating to the sale of investments, such as the date of the sale and the amount of the sale proceeds, and it was the investors responsibility to figure out how much they paid for stocks that were sold. This made it extremely difficult for many investors, as they were responsible for keeping track of and reporting the cost basis on their tax return.

That changes this year due to the Emergency Economic Stabilization Act of 2008, which shifts the responsibility to the brokers to file the new 1099-B form which will include the cost basis. In addition the expanded form will also report the gain or loss of each transaction and whether or not the transaction was short term or long term.

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Market slips after rally as housing sputters

http://finance.yahoo.com/news/stock-index-futures-point-lower-094523093.html

Wall Street dipped on Thursday as housing and financial stocks declined after weaker-than-expected housing data gave investors reason to pause after a recent rally.

Housing-related stocks declined after data showed sales of new single-family homes fell for the first time in four months in December and were shy of Wall Street expectations. The data followed Wednesday's soft pending home sales report and dented optimism that the housing market may have reached a bottom.

Traders said the market's surprising advance at the start of 2012 meant investors are paying close attention to economic reports that differed from the trend of an improving recovery.

"They are paying attention to everything, with the market up where it is right now. For the fire to continue burning, you need more fuel," said Uri Landesman, president at Platinum Partners in New York

Stocks began higher, helped in part by the Federal Reserve's vow on Wednesday to keep interest rates near zero at least until the end of 2014. Investors bet more money would be driven into risky assets, contributing to a rise in the benchmark S&P index of more than 5 percent for the year.

Toll Brothers Inc (NYSE:TOL - News) lost 3.2 percent to $22.47. The PHLX housing sector index (Nasdaq:^HGX - News) declined 1.1 percent. Banks, which stand to benefit from a recovery in housing, also fell. The KBW Bank index (Philadelphia:^BKX -News) dropped 1.8 percent. SunTrust Banks Inc (NYSE:STI -News) shed 5.2 percent to $20.50 after Deutsche Bank lowered its rating on the stock.

Stocks rose at the start of the session after data showed orders for durable manufactured goods rose more than expected in December, while unemployment benefit claims last week rose only moderately.

Caterpillar Inc (NYSE:CAT - News) kept the Dow in positive territory as its shares gained 2.7 percent to $112. The manufacturer posted a jump in quarterly earnings that far exceeded Wall Street expectations on increased global demand for construction machinery and mining equipment.

The Dow Jones industrial average (DJI:^DJI - News) gained 11.27 points, or 0.09 percent, to 12,768.23. The Standard & Poor's 500 Index (SNP:^GSPC - News) dropped 4.26 points, or 0.32 percent, to 1,321.79. The Nasdaq Composite Index (Nasdaq:^IXIC - News) lost 8.45 points, or 0.30 percent, to 2,809.86.

3M Co (NYSE:MMM - News), a conglomerate with operations throughout the economy also supported the Dow after it reported higher-than-expected quarterly earnings as demand from industrial and transport markets offset weak sales to makers of consumer electronics. The shares rose 1.4 percent to $87.71.

This is one of the busiest weeks of earnings season, with 117 S&P companies expected to report. According to Thomson Reuters data, 59 percent of the 152 companies in the S&P 500 that have reported earnings beat analysts' forecasts, down from the 70 percent beat rate in recent quarters at this stage.

AT&T Inc (NYSE:T - News) posted a $6.7 billion quarterly loss on a break-up fee for its failed T-Mobile USA merger and a pension-related charge on top of costly subsidies for smartphones. The shares fell 2.2 percent to $29.54.

Amgen Inc's (NasdaqGS:AMGN - News) shares fell 1.3 percent to $68.30 and weighed on the Nasdaq after the world's largest biotechnology company said it would pay more than $1 billion to buy Micromet Inc (NasdaqGS:MITI - News), a deal that would give it access to the company's novel cancer treatment technology.

Micromet's shares jumped 31.9 percent to $10.92 and were the most heavily traded on Nasdaq.

(Reporting By Chuck Mikolajczak; Editing by Kenneth Barry)

Release of Oil Reserves Not in the Cards Now: IEA

http://www.cnbc.com/id/46147651?__source=yahoo|related|story|text|&par=yahoo

Despite reports suggesting that Iran is considering a halt to all oil exports to Europe as a response to European Union and US sanctions, the head of energy watchdog the International Energy Agency said that releasing reserves under its control is not something under consideration now.

Maria van der der Hoeven, the executive director of the IEA told CNBC on Thursday that "releasing strategic reserves would only be a question if there is a real and serious disruption of supply. And that is not the case at this moment."

Weighing in on the actual likelihood of Iran implementing a ban, van der Hoeven said that it was very difficult to predict what will happen. However, she explained: "As far as I can see now, Iran is very dependent on its oil exports to generate income. On the other hand, we all know what is going on, and many industries are already looking for alternatives if something like that happens."

In previous supply shocks, Gulf Cooperation Council (GCC) member states have stepped in to meet energy demand. Will they do it again to preserve stability? "Yes," van der Hoeven said, "at this moment, based on what I'm hearing from producers in the Gulf, I'm confident that they will do it again."

Commenting on the possibility of an Iranian ban on imports to Europe, Olivier Jakob from energy research firm Petromatrix wrote that "given that the EU embargo officially only starts in July, that would move Iran from being a 'victim' to being an aggressor and would also provide justification for the GCC countries to replace Iran, hence we are not sure that Iran has a lot to gain politically from being pro-active on sales restrictions to Europe."

On Wednesday, the International Monetary Fund warned that a halt in Iran oil could push crude prices up by 30 percent, or $20 to $30.

© 2012 CNBC.com

Dimon: Impact of Greek Default on US Banks Almost Zero

LINK: http://finance.yahoo.com/news/dimon-impact-greek-default-us-172333882.html

The impact of a Greek default on American banks would be negligible, JP Morgan Chase CEO Jamie Dimon told CNBC on Thursday, and while there are chances of a bad outcome in Europe, he is not concerned about unpleasant surprises in the region.

"The direct impact of a Greek default is almost zero," Dimon said.

"The effect it has on the global economy will obviously filter down to the American banks too," he added, but although "there may be a surprise somewhere", he expressed little concern over such a development.

"There's a teeny chance of a catastrophic outcome, which is why the muddle-through is the only good strategy. There is no other good strategy," the JP Morgan Chase (NYSE: JPM - News) CEO said.

Not wanting to diminish Europe's problems, Dimon said Greece, Portugal and Ireland were not the main issue.

"The real issue is Spain and Italy," he said.

According to Dimon, the European Cental Bank took the "cascade problem" off the table, where a large bank would need to be bailed out and people would start taking deposits out of banks.

The ECB's long-term refinancing operation in December had taken the bank liquidity problem off the table in Europe, he said.

"I've always believed they're going to muddle through," Dimon said.

"Unraveling the euro is a terrible thing," according to Dimon. "This is a 50-year endeavor to get this continent together and that's a wonderful endeavor. And now they run into a bump in the road..."

He said Europe's leaders were devoted to finding a solution, but that the situation was complex. "There are 17 nations, there are flaws in the Maastricht Treaty."

Dimon said Greek debt needed to be restructured and Italy and Spain both had to show austerity and growth policies.

A Greek default would not be a surprise, he said. "I don't think that in and of itself is going to be the disaster."

No More Too Big to Fail

Dimon, who has been a vocal critic of a series of regulatory reforms in the United States, stressed that the idea that any bank was "too big to fail" needed to be addressed swiftly.

"We should subscribe it as bankruptcy for big dumb companies. Including banks," Dimon said, adding: "We have to get rid of too big to fail."

"What the American public wants to know is that it is not going to cost me money, and I think that could be done," he said.

"We did learn a lot of lessons. We've agreed with a lot of regulatory changes. Embedded in Dodd Frank and Basel...there are the seeds of it....we have to prove it to the world," Dimon said, referring to new financial legislation.

Dimon argued that Lehman Brothers was too big to fail when it did in 2008, but "if Lehman or even AIG had gone bankrupt in 2004, it would have been an isolated sole event the world could have taken care of".

"At that point in time we were seeing failure after failure after failure...it was just too much at the time," he said.

But former Treasury Secretary Hank Paulson, Federal Reserve Chariman Ben Bernanke and current Treasury Secretary Timothy Geithner saw the danger and did the right thing by stopping the unraveling of the system, Dimon said.

"It should be very different," he said, arguing that an isolated failure should be possible without causing the whole system to start to unravel.

Dimon praised Bernanke, saying he had been "a total adult the whole time".

"You've never heard him scapegoat, point fingers. If it hadn't been for some of the actions the Fed took...the system could have got much worse," he said. "I think he's been an outstanding citizen and an outstanding Fed chief."