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Apple to Determine How to Spend Its Cash Today
Apple has scheduled a conference call at 9 a.m. EST today to discuss what will be done with its excessive cash, according to Reuters. Apple currently holds more than $98 billion in cash. It is anticipated that it may pay dividends for the first time since 1995. Apple shares were over $600 last week and closed Friday at $585. Apple shares are held in many mutual funds, therefore its decision to pay dividends may help many investors today.
World Stocks Mixed due to Greece, Once Again
World stocks are mixed on Monday, according to the Associated Press, due primarily to skepticism over Greece's ability to repay its debts. This is despite recurring positive news about the U.S. economy. Additionally, falling home prices in China are causing unrest with investors, despite the fact that the lower home values fit the Chinese government's strategic plan. The Dow closed down 20 points on Friday, finishing at 13,232.
Fannie Mae to Bulk Sale Inventories of Foreclosed Properties
Institutional and other large investors are anxiously awaiting the bulk sale of properties by Fannie Mae, according to the Wall Street Journal. To date, most foreclosed properties have been sold on a one-to-one basis. But larger investors believe that these foreclosed properties can often be rented, sometimes to the person already living in the property, and return 6 percent to 8 percent annually, higher than most investments. Fannie Mae will bulk sale approximately 2 percent of the 120,000 properties it held at year end to gain an understanding of how efficiently the process might work. Barclays has estimated that 800,000 properties last year moved from foreclosure into rental properties via the private market.
UPS to Expand in Europe
UPS announced it will buy Netherlands TNT to expand its operations in Europe. The deal, according to the Associated Press will cost $6.77 billion. UPS estimates that the combined corporation will have more than $60 billion in combined sales this year.
Treasury to Announce Earnings on Bail-out Bonds
The Treasury will announce on Monday that it made about $25 billion on behalf of taxpayers through some of the bonds it purchased during the bail outs, according to the Wall Street Journal. During the period of late 2008 through December of 2009, the Treasury purchased multiple bonds, guaranteed by Fannie Mae, to shore up the industry. The Treasury is no longer buying bonds and is beginning to see some of the pay outs of the bonds purchased during that time.
American Women Can't Afford Basics
According to USA Today, a WSL/Strategic Retail report indicates that three key groups of Americans today feel they cannot afford the basics. These groups include women, those 18-34, and households with income of $100,000 to $150,000. Seventy-five percent of women believe they must get the lowest prices on anything they buy. These strategies will steer the course of retail for many years as it will make it harder for retailers to sell non-discounted items.
Annuity Case Strikes Fear with Insurance Agents
An insurance agent in California is set to spend 90 days in jail for selling an "indexed annuity" to an 83 year old woman, according to the Wall Street Journal. An indexed annuity is a product in which the interest rate paid is linked to the success of the stock and bond markets. According to Limra, $32.3 billion of indexed annuities were sold in 2011. In the case at hand, the 83 year old woman was said to not have had the mental capacity to understand what she purchased and the agent was blamed for being motivated by the 12 percent commission. This case will cause insurers to carefully assess how they sell products to older prospects.
Starbucks to Open New Chain of Juice Stores
Starbucks is set to open a new chain of health and wellness stores this week called Evolution Fresh. The first store will be in Bellevue, Washington, according to USA Today. The chain will focus on fresh customized juices, along with salads, smoothies and other health foods. Starbucks believes the world of health and wellness is the future and is a $50 billion industry. The chain will be closely watched as the future of Starbucks, despite the fact that there will be no co-branding among the chains.
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.
