Facebook Exceeds Google in Internet Company IPO

Facebook Inc.'s $5 billion initial public offering would make it the biggest U.S. Internet IPO in history, surpassing the debut of its arch-rival Google Inc.

The social networking giant Facebook filed its much-anticipated IPO filing late Wednesday, setting the stage for what's expected to be the biggest public trading debut for an Internet company since 2004 when Google went public in a $1.7 billion offering.

The Facebook's IPO would also mark a high point in the rapidly growing social networking market, underscored last year by the public trading debuts of such players as LinkedIn (the professional networking site) and (Zynga Inc.) the social gaming company.

The IPO of Facebook also would rank among the top 10 biggest overall in U.S. history of U.S.-based companies. That list is led by Visa Inc., whose 2008 IPO was worth $17.9 billion, followed by General Motors in 2010 at $15.8 billion, AT&T Wireless Group in 2000 at $10.6 billion and Kraft  in 2001 at $8.7 billion, according to S&P Capital IQ.

U.S. economy expanded at a 2.8 percent in the fourth quarter

Gross domestic product expanded at a 2.8 percent annual rate in the fourth quarter, the Commerce Department said on Friday, a sharp acceleration from the 1.8 percent in the prior three months.

Soft underlying demand and a sharp slowing in core inflation supported the Federal Reserve's decision this week to keep in place an ultra easy monetary policy to nurse the recovery.

The economy got a temporary boost from the rebuilding of inventories, which logged the biggest increase since the third quarter of 2010.

Excluding inventories, the economy grew at a tepid 0.8 percent rate, a sharp step-down from the prior period's 3.2 percent pace and a sign of weak domestic demand.

Fed is likely to keep low key interest rate until late 2014

The Federal Reserve says it is unlikely to raise interest rates before late 2014. It means a period of record-low rates would be extended by more than a year. The Fed has kept its key interest rate at a record low near zero for three years.The Fed's decision to keep rates low is to help lift a weak but modestly growing economy.

The new timeframe hints at details in the Fed's quarterly economic forecast, which will be released later. That will show in what year policy members expect the first increase in the Fed's benchmark interest rate.

IMF cuts global economic growth outlook

The International Monetary Fund (IMF) on Tuesday cut its forecast for global economic growth in 2012 and 2013, citing growing financial strains and rising downside risks as Europe's debt crisis entered a "perilous new phase."

The institution said it expects world economic output to grow by 3.3% in 2012, down from 3.8% in 2011 and from a September forecast of 4%. Global output is forecast to expand 3.9% in 2013, down from a previous
forecast of 4.5%.

The IMF expects the 17-nation euro-zone economy to shrink 0.5% in 2012, followed by growth of 0.8% in 2013. The IMF had previously projected growth of 2.1% in 2012 and 1.5% in 2013.

The IMF left its forecast for U.S. economic growth in 2012 unchanged at 1.8%, but pegged 2012 growth at 2.2%, down from an earlier projection of 2.5%.

U.S. Banks' Bad Reports

The worsening investment environment at the end of 2011 took its toll
on the fourth-quarter earnings of America's banks.

JPMorgan Chase and Citigroup did worse than expected, posting declines
in net profit of 23% and 11% respectively, compared with the same
period in 2010.

Goldman Sachs said its net profit was down by 58%.

But Wells Fargo, which has a smaller investment-banking business than
its rivals, saw net income jump by 21%, to $4.1 billion.

30-year mortgage rate fell to record low of 3.88%

The average rate on the 30-year fixed-rate mortgage fell to a record
low of 3.88% in the week ended Jan. 19 from 3.89% in the prior week,
according to Freddie Mac in its weekly report released on Thursday.

A year ago, the 30-year rate was at 4.74%. These data go back to 1971.

To obtain the latest rate, payment of an average 0.8 point was
required, according to Freddie, a buyer of residential mortgages. A
point is 1% of the mortgage amount, charged in prepaid interest.

Meanwhile, the 15-year fixed-rate mortgage ticked higher to 3.17% in
the latest week from a record low of 3.16% in the prior week. These
data go back to 1991.

FBI made arrests for insider trading

The Federal Bureau of Investigation (FBI) on Wednesday arrested Todd
Newman, a former portfolio manager with the Diamondback Capital
Management hedge fund and John Horvath, an employee of Sigma Capital
Management, an affiliate of SAC Capital Advisors, as part of an
insider trading investigation, The Wall Street Journal reported.

The Federal Bureau of Investigation is also expected to arrest Anthony
Chiasson, a former hedge fund manager at Level Global Investors LP,
who was expected to surrender in New York, the newspaper reported.

A fourth person was expected to face charges as well, but the
newspaper article did not provide a name.