Tuesday, January 12, 2010
Barclays Plc won the sheikdom’s first foreclosure cases in court, clearing the way for lenders holding about $16 billion of Dubai home loans to take action when borrowers don’t pay. Islamic lender Tamweel PJSC, the emirate’s biggest mortgage bank, has several of its own foreclosure claims pending and estimates about 3 percent of its mortgages are in default.
“Banks will be more aggressive in pursuing legal action if they see the process is efficient,” said Dubai-based Antoine Yacoub, a banking analyst at Moody’s Investors Service Inc. “They were trying to avoid the courts and restructure most of their loans, but once they see a precedent has been set, they will be encouraged to push more cases through.” (more)
Agriculture stocks such as coffee and big grains such as corn remain a good investment because they have not attracted attention like gold.
“I'm looking at agriculture primarily because it is the commodity sector that hasn't been overrun with investors this year,” said Mark Hansen, director of Trading at CPM Group, New York, CNBC reported.
Corn is a strong commodity performer, partly fueled from high sugar prices and a government mandate for an increase in ethanol usage, Hansen said. (more)
The figures came as PSA Peugeot Citroen of France said markets were expected to show signs of recovery around the world in 2010, while Volkswagen AG said it aims to at least double its U.S. sales in coming years.
After a year in which Chinese automakers made key acquisitions abroad, Beijing's renewed incentives to bolster demand will likely keep it as a bright spot for car makers battered by the financial crisis. (more)
Wall Street rallied. Bulls hope that weak jobs data will postpone monetary tightening: a silver lining in every catastrophe, or perhaps a further exhibit of market infantilism. (more)
This is a very weak unemployment report as every important qualitative measure of unemployment showed further weakness. There is no recovery based on the data. From the Bureau of Labor Statistics: (more)