The Good ... Banking giant's earnings pick up, but US Christmas sales disappoint

JPMorgan Chase & Co reported a 47% increase in quarterly earnings, but much of the gain came from dipping into money previously set aside to cover bad loans.

The gradually recovering US economy is allowing JPMorgan to keep less money on hand for loan losses. Profit and revenue was stronger than expected, and the bank made more loans.

But JPMorgan is still wrestling with the aftermath of the mortgage crisis - it set aside another $1.5-billion to cover legal settlements mainly linked to home-loan foreclosures. Its shares rose 10c to $44.55 in early trading on the NYSE.

Analysts said the results could indicate headwinds for major banks reporting this week. The largest US bank, Bank of America, reports on Friday while Citi-group, the third largest, reports on Tuesday. Goldman Sachs Group reports on Wednesday.

• The Department of Trade and Industry on Friday called for comment on amendments to the broad-based black economic empowerment (BBBEE) codes of good practice.

The changes will allow registered auditors to conduct BBBEE verifications and issue verification certificates. From April 1, auditors who attend "satisfactory competency training" can apply to be approved to issue certificates.

• Gold Fields expects 900000 ounces of gold output in the three months to the end of December, unchanged from the previous quarter, it said this week.

The world's fourth-largest listed gold miner said total cash costs were expected to be about $730 per ounce and notional cash expenditure about $1100/oz.

Gold Fields suspended operations for a few days during the quarter after two workers were killed in separate accidents at its shafts. Gold Fields shares rose 0.70% to R116.86.

• Angola's economy should grow by 4% this year, due mainly to non-oil sector growth of about 5.7%, central bank governor Jose Lima Massano said. Annual accumulated inflation in November stood at 13.44%. Year-on-year inflation was 16.08% in October.
• Shares in Uranium One surged 6% to over R33 after the Toronto-based uranium producer posted a 106% rise in full-year 2010 production. Analysts said the stock, with assets in Kazakhstan, the US and Australia, has plenty of upside.
• Shoprite reported a 9.5% rise in first-half turnover as lower interest rates and tentative economic growth encouraged consumers to spend more.

Comparable store sales were up 2.8% in the six months to the end of December, achieved in an internal deflation environment of 1.2% for the period.

Shoprite, which has operations in several African countries including Nigeria, said its South African unit posted an 8.4% rise in sales while turnover from abroad inched up 3%, hit by unfavourable currency swings.

The Bad

Sales at US retailers rose slightly less than expected in December, but retail sales for all of 2010 reversed two years of contraction and posted the biggest gain in more than a decade, a government report out on Friday shows.

Total retail sales climbed 0.6%, advancing for the sixth straight month as declines at electronics and general merchandise stores were offset by gains in fuel and building materials, the Commerce Department said.

• The rand weakened more than 1.4% to a five-week low against the dollar on Friday, partly tracking weaker emerging markets while some analysts pointed to a continued correction after last month's gains.

On Friday the rand traded at 6.9373 against the greenback after sinking to 6.9435 earlier, compared to Thursday's close at 6.8446.

• Wendy Machanik Properties has been provisionally ordered to not trade as an estate agent by the High Court in Johannesburg, a lawyer for the Estate Agency Affairs Board said on Friday.

The order follows an urgent application by the EAAB which argued that Machanik did not have the necessary fidelity fund certificate for 2011 to operate, as required by the Estate Agents Act.

The matter was postponed to Tuesday for the EAAB to argue for its application, and for Wendy Machanik Properties to argue a counter-application.

• Icelandic police have detained the former chief of the failed Landsbanki and another senior executive as part of a probe into alleged crimes in the lead-up to the bank's collapse in October 2008, the special prosecutor said on Friday.

A municipal court judge would decide later whether to keep the executives in detention on suspicion of market manipulation ahead of the financial meltdown that hit the island's economy, prosecutor Olafur Thor Hauksson said.

The two men are former chief executive Sigurjon Arnason and Ivar Gudjonsson, the former head of the bank's investments arm.

• AngloGold Ashanti, the world's third-largest gold miner, suspended operations at its Great Noligwa Mine earlier this week after a worker was killed in an accident. The company said the worker died after he was struck by mechanical equipment during a cleaning operation.

• Spanish consumer inflation reached 3% in December after tobacco taxes were hiked and energy costs rose at its fastest rate since October 2008 and outpacing the euro zone average.

The pace of year-on-year inflation accelerated from 2.3% in November, data from the National Statistics Institute showed on Friday. Core inflation, which strips out volatile energy and food prices, was 1.5% in December, up from 1.2% in November.

The data comes before the release of inflation for the entire euro zone, which is expected to confirm a 2.2% rise in consumer prices.

The week ahead

MONDAY JANUARY 17

JOHANNESBURG - Kagiso Securities releases December Purchasing Managers' Index

HARARE - Zimbabwe releases December CPI data

GABORONE - Botswana releases December CPI data

SWITZERLAND - Richemont to publish its December-quarter trading statement

TUESDAY JANUARY 18

PRETORIA - The Reserve Bank's monetary policy committee starts a three-day meeting on interest rates

LONDON - SABMiller releases its third-quarter trading statement

CAPE TOWN - Clicks Group AGM

WEDNESDAY JANUARY 19

PRETORIA - Statistics SA releases December consumer price index data and November retail sales data

THURSDAY JANUARY 20

PRETORIA - Reserve Bank governor Gill Marcus announces monetary policy decision on interest rates

LONDON - BHP Billiton releases December-quarter production and exploration and development report

FRIDAY JANUARY 21

JOHANNESBURG - Netcare AGM