Mortgages: Royal Bank increases interest rates

Royal Bank (TSX: RY) announced Friday that its interest mortgage rate increase Monday. Increases, ranging from one to two tenths of a point, will apply to fixed rate mortgages with a maturity of one to five years.

The largest increase will be a mortgage with a fixed maturity of five years offered by the bank to 3.09 per cent, rising to 3.29 percent. This is a promotional rate falling below the regular rate of 5.14 percent.

The rate of the Royal for mortgages with a fixed maturity of one year will rise by 0.14 percentage point to 3.14 percent, while the rate for loans with fixed maturities of two, three and four years will be a good one-tenth of a percentage point.

Royal Bank is the first major bank in the country to raise interest rates for mortgages since its bond prices from Canada fell last month rates.

Canadian banks use the bond market to finance their loans, which means that other institutions would follow suit at the Royal.
192.168.l.l

U.S. stocks record high of 29 months, the Dow million in the second firm

Investors continue to bet the U.S. economy will further recovery in a positive atmosphere to do more boost, the U.S. stock market continued to move up; at February 7, the Dow Jones industrial average rose 69.48 points to close at 12,161.55 points, or 0.57% , a record high of 29 months; the Nasdaq composite index rose 14.69 points to close at 2783.99 points, or 0.53%.

U.S. Federal Reserve on February 7, last year in December the U.S. personal consumer credit growth in the third consecutive month, mainly due to the holiday sales growth, driven by credit card loans increased more than two years for the first time, than economists had expected ; In addition, data released on Friday showed the U.S. unemployment rate in January fell to 9%, the lowest since April 2009, the unemployment situation improved market analysis is also much better than expected.

Facebook billions of dollars in recent valuation

According to the U.S. not listed equity trading platform SharesPost latest forecast, the market value of social networking site Facebook has soared to 82.9 billion U.S. dollars, far exceeding the previous estimate of 50 billion U.S. dollars of Goldman Sachs, the nation's second only to Google's second-largest Internet market technology enterprises.

However, this is not the highest market valuation of Facebook estimate. It is reported that, SharesPost deal in early January 2011 price of $ 60 a share, the Facebook share transaction, if the price is calculated accordingly, Facebook has reached the overall valuation of $ 136,000,000,000.

As of June 2010, Facebook has surpassed the number of online users 500 million, advertising revenue prospects for the future, the related revenue in 2011 is expected to be more than doubled to 40.5 billion U.S. dollars. Although not yet listed, Facebook stock has draw for investors. As SharesPost active on the valuation of the company to new heights recently.

But a survey, most investors do not think that Facebook has with such a high valuation of strength. Bloomberg News was 21 to 24 January 1000 on the global investors, traders and analysts in the survey, 69% of the respondents think that Facebook is not worth 50 billion U.S. dollars, and that its market value of 500 billion U.S. dollars by Only 10% of the respondents. Fund managers believe that part of the pursuit of Facebook investor hopes the company become another Google, which allows them to ignore some of the negative factors.

IMF: fiscal policy, the United States to be a substantial adjustment

International Monetary Fund, 27, said, if you want to achieve by 2013 the goal of halving the deficit, America must make its financial policy, "a major adjustment."
IMF accused the United States Congress by the end of 2010 to extend the Bush tax cuts during the decision, saying the stimulus effect will be less than the financial cost of their pay, and pointed out that in 2011 the United States is the expansionary economic policy to implement the only developed countries. U.S. policy decision makers, and the Japanese government's tax cuts, will delay the urgent need to enhance their efforts to resolve the financial situation.
IMF believes that the U.S. and Japan is particularly needed to reduce the deficit and debt through the development of measures to enhance their ability to adjust in order to fulfill their commitment to deficit reduction.
White House and many congressmen from both parties on Capitol Hill expressed concern about the deficit. Barack Obama 26 pm "State of the Union" during the claim domestic discretionary spending freeze for 5 years; this policy will be supported by reducing the government deficit within 10 years, more than 4,000 billion dollars.
Obama said "the worst economic recession since the period has ended, we must face the fact that our government make ends meet."
Overall, IMF said the global economy in 2011 is expected to be slower than expected pace in order to reduce the deficit, while the total debt ratio is expected to climb to more than the global gross domestic product, more than 100%. Europe's debt crisis, coupled with some emerging economies, the risk of overheating the economy may be cause for concern.

Late afternoon: U.S. stocks fell slightly resources stocks leading the decline

U.S. stocks fell slightly late Tuesday, led by resources sector. State of the Union President Obama will, long-rumored he may propose to freeze the federal budget.
EST at 15:31 on January 25, the Dow Jones Industrial Average fell 30.27 points to 11,950.25 points, down 0.25%; the Nasdaq composite index fell 5.75 points to 2,711.80 points, down 0.21%; the S & P 500 Index fell 2.72 points to 1,288.12 points, down 0.21%.
Today, the lowest intraday Dow had dropped to 11,898.74 points.
Dow from 12,000 now only one step away. The Dow last closed above 12,000 points, in the June 19, 2008. On Monday the Dow rose 100 points, so some investors that the Dow approaching 12,000 at the time a correction is normal.
Instinet U.S. investment institutions, head of trading David - Braun Tonio (David Bellantonio), said "the market for a long time have not rebounded to the point, you will see the Dow approaching the psychological barrier of 12,000 points, the market will be some selling. Recently the market has received a considerable increase, so market forces may be tired. "
Today, more than the Dow investors welcomed the company's earnings components, including Verizon Communications, 3M, DuPont and so on. In addition, Obama will be 21:00 EST (10:00 GMT Wednesday) began to publish State of the Union. The Fed will also benefit from a two-day meeting today's monetary policy meeting. Prior to this cautious market sentiment.

14 trillion U.S. bond breaking Obama delicate red hard deficit reduction

U.S. Treasury Department data released on Friday, the U.S. national debt has exceeded 14 trillion mark for the first time, the equivalent average, each $ 45,300 of national debt. U.S. Treasury Secretary Timothy Geithner predict the number will be the U.S. national debt by the end of March this year to reach 14.3 trillion statutory limit of the serious threat to U.S. economic recovery.
14 trillion national debt is not a small number of investors are worried that the U.S. rating agencies or 3A sovereign credit rating cut, the Fed's policy of quantitative easing is also second to increase the risk of downgrades. According to foreign media reports, the Standard & Poor's report released yesterday, as investors from the United States in the divestment of municipal bond mutual funds reached a record level of the scale, municipal bond yields have reached the most serious financial crisis since the highest level during the year U.S. state and local government bond rating was lowered to increase the likelihood.
However, some analysts have said that the U.S. debt has been globalization, the debt crisis in the short term the possibility of the United States is very small. Standard & Poor's also expects most U.S. state and local government bonds will remain the senior side's investment rating.
European trading session yesterday, the dollar index rebounded slightly, but market participants said that the implementation of quantitative easing in the Fed and the U.S. government in the context of growing fiscal deficit, the dollar market outlook is not optimistic, gold rally can be expected.

House Republicans began drafting alternative health care program

Republican members of U.S. House of Representatives will today begin drafting their own health care reform plan, the hospital had already voted to abolish the United States President Barack - Barack Obama (Barack Obama) legislation signed last year as the official health care system, a proposal to overhaul bill .
House of Representatives will be working on a resolution, duly authorized four committees to begin drafting a new health care reform plan, which the Commission has announced that two of Obama's health care reform bill the government investigation, a committee on this bill to the job market with to investigate the impact of the other, a committee investigating how the Government is committed to certain companies granted immunity issue, the right to make such an exemption from the requirements of the Act.
Republican lawmakers have not provided their own details of health care reform plan. Minnesota Republicans, the House Education and Labor Committee Chairman John - Klein (John Kline), said in an interview: "We plan a structured approach to the drafting of this plan, will hold hearings and collect relevant information." House of Representatives Speaker, Ohio Republicans - John Boehner (John Boehner) said that the alternative plan will be to "suppress the American people's health insurance costs and improve health insurance coverage" as the goal.
In yesterday's vote, the House of Representatives members by 245 votes in favor, 189 votes against abolition of the voting results agree with Obama's health care reform bill, all Republicans are in the ballot voted in favor. In addition, three Democratic members voted in favor of, respectively, from Oklahoma, Dan - Boren (Dan Boren), from North Carolina, Mike - McIntyre (Mike McIntyre) and from Arkansas Mike states - Rose (Mike Ross).